ITC’s Savion set topost 4x risein consumer spend ‘st a our ‘Riding the hygiene wave dur ingthe pandemic. NCsSavlon ‘ssettocrossconsumerspend (of 8.000 crore tis year. & ‘morethan furfldjump ftom last yearand the first from the personal care portfolio to Achievethe milestone, ‘Sameer sional chet executive officer, personal care products busi: nessa ITC std Svlon would Dethe fist rand fromthe per sonal ear potoliots clock in consumer spend of &.000 roe. Till recently, Viel was {thelargest brand in ITC per sonal caebusiness with fan annual consumer spendof 500 crore However tisunder stood that Savon con sumer spend may already be at W000 crore. The annual con sumer spends of ITC's non cigarette fast mov ing consumer goods brandsvas 9700 crore sites were added for manulae turing, using partners. Anew plant isalso coming upin the East. Speaking on the other soquistion, Nimle (the Noor Gleaner brand), Satpal aid itwas already four times the slae since Ie was acqulted 10 oars ago. “Tt was primarily 8 West Bengal brand, but we have now taken tt the whole of Fast and lla ont inthe South, in the Eas, we have already become the number fone brand by volume” ‘Nimyle waslikelytorecord consumer spend of 150-160, tore this year. TC has been, facing tough questions from Investors on Yarious fronts in201920. The €.000 ACQUISITIONS IN crote-phis brands vere: PERSONAL CARE ‘Aashitvaad (86000 crore), Sunfeast (over ENMU) %4000 crore), Bingo! (@2700 crore), YiPPest (1300zor Classmate * Has gown'S-i6timessince aequstion (aearly tha00 crores," Cnsumerspend to cross Savlonwasat@2s0erore. 1,000 core this year Satpthy sald Savion * In 209-20, consumer spend had been wowing at wos7250 core compound aneual growth rate of so per MDT) ent for the past five * Grown furtimessince acquisition years. “The size of the brand is 15 to 16 times -more than what i was ‘when we acquired the * From a West Bengal brand itis now present throughout the ast and hasbeen ole out in the South brand We used il our * Consumer spend this year Ieerstorekindlegrowth —"0dET0-160 core andequsy,beitdiszbu tion, brand building. and Innovation” he sai, 'D slew of products was launched duringthe pandemic ‘ner the Savion brand keep- ing in mind the consumer requirements. Disinfectant Spray, sanitizers (plain and _mesicated) pes, dlsinectant cleaning products, mulpar pose disinfectant iq, nd lathes were someof them 12015 when TCacquired savlon (along with Shower to Shower thadasoap, aise te liquid and a bit of hand wash, ‘The consumer spend 1was:50-5 core, “Though Savion has been rowing buttisthepandemie thathasgiventhetranda eal push Savion. now, selling ‘month what i normally used tina fll year Manufacture fsintizerswasrampedupty ‘ars imes to cater tothe surge indemand, Satpathy said five-six new Including ts acquisitions. “Doth hebrandsareahead ofthe acquisition assumptions both in top ine and bottom line We are creating vale fo the organisation and aso for ‘lout stakeholders Satpaty Said, TIC has extended the Nimebrandtocomeup with A fruit and vegetable wash Nimwash. Explaining ITC's atl behind acquisitions Satpathy said, “The guiding Drincips were that t should bevalue accretive Second, it should moot the governance Standards of consumer safety andthe quaby standards, We Ibdiewethat sich a approach leads to a more sustainable performance and helps it 0 ‘ow and build strong brands Inbusinesses" TTChas alvaysshownabil laytogrow brands organically Satpathy pointed out ‘Tnoruanically, we are even sore confident he added.Co, which has 20 products in pipeline, sees strong traction in popular offerings Herbal, Ayurveda Trend in Covid Times Helps Boost Dabur’s Health Jwallt.vyas@timesgroup.com ET Intelligence Group: Dabur Indias expected to bea major beneficiary of the risingawareness and demand for ayur. vedic and herbal products amid the Covid-19 outbreak and the government's efforts to bring traditional medicines intothemainstream. ‘The company, which earns over one- thirdof ttsrevenue from theayurvedic ‘segment, has reported astrong traction over the past few months in some of Its Popular offerings — the salesof its ‘chyawanprash increased sevenfold while thatof honey jumped by 60% year on year in the June 2020quarter. According toa report by marketrese- arch firm IMARC, the ayurvedic segment inthecountry is expected to grow 14% annually for the next five years. Major ‘companies including Dabur, Baidyanath and Emam1 are together estimated to have ‘85% market share in thedomesticayurve- dicmarket. In termsof distribution reach, Dabur has nearly 70 lakh outlets FMCG Growth Valuations &. Estimated Earnings re Ge Maroc) across India, making It the third-largest FMCG company in terms of reach. Apart from ayurvedic products, Dabur earns over half of its revenue from homeand personal care products and theremaining from food products.'To address the shift inconsumer choice in favour of ayurvedicproducts, the com- pany has launched several products suchas haldi drops, giloyras and immu- nity kits, Italsohasa strong product pipeline with 20 new launches over the hextfour years. ‘The company is working with the Ministry of AYUSH to boost consump- tion of natural products and tohelp in framingregulations. Ithasstarted conducting clinical trialson theefficacy of chyawanprash, ashwagandha and giloy inCovid treatment in partnership with the government. IntheJune quarter, its revenues fell by 12% andnet profit by 6%. Analysts. expect the company to make upfor the fall in the remaining three quarters of FY21, thereby delivering earnings growthof 4.5% for theentire fiscal followed by anearly 15% growth in each of thenext two years. At Wednosday’s closing price of #524, thestock was traded at50 and 43 times FY22and FY23expected earnings, re- spectively. Larger FMCG peers HUL and Nostle trade at around 53 times F¥22 estimated earnings. Dabur'sstock has galned6% 1n2020so far, outperforming the Nifty FMCG index, which has lost 2% during the period.RELIANCE RETAIL-FUTURE GROUP DEAL Amazon Sends Legal Notice to Future Coupons Saysdeal breaches contract that stated US firm had the right of first refusal Sagar-Maiviya ‘@timesgroup.com ‘Mumbat: Amazon has sent ae al notice to Kishore Biyant's Future Coupons, a promoter holding company in which the US retail giant nas a siake, cla ‘ming that its deal with Reliance Industries ‘breaches the cont. rract under which the US online ‘lant took an Indireet stake in Future Group last year As per Amazon, thecontractstipulated ‘that Future cannot sell any sha rrestoRolianceor any other com. etitorandinat Amazon had ihe Tightof frstrefusal ‘The US-based retail glant con ‘firmed the development in are sponse to ET's query. "Yes, we have initiated proceedings to enforce our contractual rights {twill be inappropriate for us to Drovide any more details rola {ing to the matter as the mattor ‘ssub judice,”saldthe company spokesperson. "Two people aware of the deve- lopment sald: Amazon has rat sed! objections to Future Cou pons not seeking approval from iteven when the US company ‘Amazon | Thisafter it has about bought 49% 5% in Future. ‘Coupons for stake in 124,500 crore Future Retall| last year Future was in talks with Amazon for ‘The issue could eo into ‘medlation or arbitration ‘had the frst right for any stake ‘sale that Future Retail might intuate. "While there were mu ‘tually agreed exceptions such asliguidity allowancosandafn- iiate transfers, the agreement also had a clause restricting them from selling their shares toany third party oreompetitor without thelr consent. Tt also Clearly: mentioned Reliance,” saldone of thepersons ‘Future Sought Funding from Amazon’ From Paget ‘The Seatdebasad retail yant nas aout 5% stake in Future tall ‘whe houses all fod and grocery stores suchas Big Bazaar and Easy. day — after itbought 9% m Future ‘Coupons fore. crore ast yor. It also says thas the rstright buy ‘Biyants entre holding in tis com- ‘any betwoon three and ten years aftrthe ransacdon. ‘After forelgh Ownership rules ‘were amended in February last $year, Amazon adopted herouteot an investment through FUCUre ‘Couponsso that teouldaanereto rogulations governing overseas Investment real -Howover in August RellanceRota- ‘agreed roacquire the retal ass of Purure Group ina complex deal ‘which wills themerger af fvelis- tedenties, including Future Rota A, imo Future Enterprises (FEL) red to Rellance tn a slump sae for ‘near e25,000 crore. ‘A. gobal tnvestor who under stands Amazon's thinking sald ie rewerealotof correspondencesent {o Future Group but thay were not responsive or comseructve™. "NO foreign investor would want to in- vest in India if there are such dear Violations of contraction obi ‘don,” sad the person, Rellance Re ‘all and Future Group didn't re. Sponrito queries sont io thom, “However: somte senor Industry ex. cceutves sad Future Group ad ‘several i sppronched luding,Amazon,tosalvayethesit: dation after It was saddled with ‘eGo crore debt and rising inter es."Thefstrightof offer canonly hhappen after November 22 as per tmedea. Also, Future ell nelase- Yeral roubds of discussions With ‘Amazon seeking fresh funding t0 salvage ne company butthoy were rnoneommiga” said an industry ‘offical dealing with Future Group. The matter could now Into me diaton or even arbitration, which ‘cou delay the stake sale process ‘with Rola Retail" headd, ‘Legal experts) sald accurate contractual interpretation would ‘dependon the causes ofthe Sha- re Subscription Agreement be. ‘ween Amazon and Future Group, Dut elreumventing the right of frst right, even: mdtroctiy. may ‘not pass mustor with thecourts ‘Drawing an analogy from the rischler Tule of interpretation, fan agreement or arrangement ‘wiu the Intention to defeat the Tight of rst retusa clause fs not ‘Sustainable in lave” sald Ashish, ‘Kumar Singh, managing partner (of Capstone Legal. n September ‘this yoar Reliance industries app, rroached. the Competition Com- iission of India (CCD for appro- ‘alot ifs dal with Future Group. Future Group willalso seek app roval from ersdltors and bankers ‘and then approach shareholders ‘with ihe compostie scheme of ar- Tangomont womerge istod unt. Since the past twomonths.some of the lenders to Kishore Biyant ‘Such as PE funds Apotto Global ‘Management, Alon and Blacksto ne, along with BL Bankand AXIS inane, have invoked pledges to ‘take oquity stakes in Future Gro- "upfirms while few equity inves tors, suchas Norges Bank have ‘downsized thelr holdings. TnePE. fundsare sald tobe unhappy over thetermsot the transaction Future Group has roped in JM F ‘nancial for parieys with Blackstone toassuage thlatersconcorns.H&M India’s revenue rises 14% to %1,700 cr was 007m. Fashion retail brand H&M registered 11,700 crore sales in 2019, 14 per cent higher year-on-year (YoY) from 81490 crore it had posted a year ago. Since its entry in 2015, the Swedish brand hhas managed to grow its business in India by double digits, However, in 2019, its growth fell significantly from the previous year. 12018, itstop line had grown 43 per Accordingtoits country manager for India, Janne Einola, in the cur- rent year, it top line may suffer. With the Covid-19 pandemic and. lockdowns severely impacting on- floor shopping, Einolaexpectstoend the yearata lower evel than last year. ‘During the first nine months, we have suffered sales loss tothetune of 3iper cent. Currently, our operations here are at the 50 per cent level. dont think we will be able o touch last year’ssales numbers in 2020," he said. H&M follows a December to November financial year calendar. ‘The impact was also felt on its short-term plans. While in 2018 and 2018, it had opened eight and 12 stores, respectively, this year it is opening only two outlets in Bhubaneswar and Lucknow. This will take its store count to 48, spread across 23 cities in India, ‘While H&M was heavily depend: ent on the online channel for sales, the recent crisis has increased its dependence on the channel further 1h 2019,it got nearly a quarter ofits sales from the two online channels ~ Myntra marketplace and its own online store. “The share of online wll continue to remain high for the moment, until the situation nor malises,” sald Einola,QUICKLY Zydus to buy back €1,500-cr bonds Ahmedabad, October 7 Zydus Wellness will soon initiate the process of repurchasing debentures worth 1,500 crore it had issued on January 11, 2019. The company's board on Wednesday approved the amendments to terms and conditions of the re-purchase of debentures in tranches. It also cleared the proposal to make changes in connection with the redemption schedule and record date. It has fixed October 7 as the record date to identify the eligible debenture holders to whom letter of offer will be sent for re-purchase of debentures. Zydus Wellness had issued debentures of face value of $10 lakh each aggregating to 1,500 crore. ouRBUREAUOcenia t ONE as a-nation. Reutty ee cee y Dea -— P Ow Ce EU Sop ays at De A confluence of India’s finest GS I A eee aU F Cc eae vad : eur teen Pee) i Clio econ Deri ree Ss Returned cas ram 4 tt A ». iN Ba noe dbs sists Vrs eye et s @ eeu ed a et ( yon et arin coin Conn Ou Ago) D> + Toate your nearest store an hrow move on 6366220017 ewsiorer now open si iNiaunen, Thane ihiodbundertioe?.sfeat — * ett tt sae eran eres Foe ret Bie sata Siew of sar, TE apf & ot & ft ter we TY at * tint, emt enito afer, frat ae gph) PA TT ig creme, oe 25 AE SP ens Soca &, ste oe Hg te * ‘Aftereme Reger ge ot are ig =3Thr- 100 ae age ave & a —_— = Seen ae 2100'S ge t+ HE ‘e182 tae 8A a ar, ee a rf fe ge 4 7005 ote MAP ofl