*Growing & Declining

Firms

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Shruti Nair (26) Nikita Porwal (27) Nikul Maheshwari (28) Nilesh Shahji (29) subtitle style Pandya (30) Kalgi

5/5/12

*Effectiveness
*DABUR India Ltd.

5/5/12

* Dabur has undertaken e-procurement in a big way. * In 2003-04 Dabur India procured Rs.210 crore of raw

materials through e-sourcing or almost 50 per cent of total raw material expenditure and, in the process, considerably controlled raw material costs which were on a rise. * For better production and operation management, Dabur included automation, debottlenecking, Kaizen and wastage control. It set up production units in locations providing tax holidays to reduce cost and improve efficiency.

*Instances..
5/5/12

*Dabur also de-merged its pharmaceutical

business to come out as a pure FMCG player *Dabur estimated that the southern region was contributing as low as 7% to its overall growth. *For this purpose, the south team adopted a three-phase approach. *First, it focused on point of sale promotions and stocking practices. *Second phase included better marketing efforts in terms of advertising and packaging. *Finally, it envisioned customized product launches for the Southern states. 5/5/12 *The completion of first two phases by

*Instances..

In Rs. Crores SALES PAT EPS P/E Ratio

FY 11 FY 10 FY 09 FY 08 FY 07 FY 06 FY 05 FY 04

4,110 569 3.3

3,416 501 501

2,834 391 391

2,396 333 333

2,080 282 282

1,757 214 214

1,417 156 156

1,236 107 107

36.57

Financial Data
Source: www.moneycontrol.com 5/5/12

*POWER
*Godrej

5/5/12

* Godrej acquires Nutrine Confectionery Co. in

2006

* Sub-brands such as Maha Lacto, Koko Maka, Milk

Eclairs, Honey Fab, Aam Ras and Gulkand

* Godrej Food and Beverages Ltd. Acquired it for

Rs. 250 Crores. * Nutrine Confectionery was a market leader in the sugar confectionery sector with 24% share. * As for the rationale behind the company's move, Adi Godrej, chairman, Godrej Group, said,

* This acquisition is a strategic fit in our growing

portfolio of the foods business. Also, it gives us ready access to a strong portfolio of confectionery brands.

*Instances..
5/5/12

Parameter 2011 PAT Sales Turnover EPS P/E Ratio 24.55

2010 434.95

2009 248.12 161.55 1,135.37 6.29

2008 148.12

2007 122.03 799.41 5.40

2,477.46 13.44

1,301.58 8.05

922.78 6.56

*Financial Data
Source: www.moneycontrol.com 5/5/12

Declining HMT Watches

*Dependency on Single
Product and Single market
5/5/12

* Until the mid-1980s the industry was

predominantly producing mechanical watches. * HMTs prime product category (mechanical watches) was in the decline stage of PLC. * HMT didnt embrace new quartz technology to a great extent & suffered because of their adherence to mechanical watches. * New technology inputs brought along with it substitutes of the various products. * HMT is in losses for last 10 years * The Minister of Heavy Industries Praful Patel confirmed that a revival plan has been taken up of around Rs. 981 crores. (Dec 16, 2011)

*Instances
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*Financial Data
Mar 11 PAT EPS Sales P/E -79.24 -1.04 202.55 -28.05 Mar 10 -52.91 -0.70 194.94 Mar 09 -70.79 -0.93 164.44 Mar 08 -44.67 -0.59 174.14 Mar 07 54.30 1.05 233.11

Source: www.moneycontrol.com

5/5/12