Videocon, Porsche and Tanishq in news

By Vipin Agnihotri

Videocon transitioning from electronics to exploration

Videocon Industries has just taken a step ahead by transitioning from electronics to exploration. According to sources, the company is in the race for acquiring London based Burren Energy, which digs oil in Congo and Turkmenistan.

There is a buzz in the Indian media that Videocon has submitted an expression of interest for Burren and believes that Burren’s operation would be of great value and in sync with that of its own. However, Burren of late has discarded quite a few approaches including one from the Italian energy major ENI.

Porsche to expand its operations in India

The German luxury car maker, Porsche is all set to expand its operations in India. And going forward with it, Porsche recently inaugurated a $ 2 million showroom in Mumbai and intends to open similar showrooms at Hyderabad, Bangalore and Chennai. It also plans to open a facility in Mumbai by 2009.

The company hopes to continue its legacy in the sports car segment and intends to take it to a new high. At this moment of time, Porsche’s Cayenne model sells the best, amongst its models in India.

Tanishq all set to enhance its sparkle!

Tatas are all set to capture the niche market with their jewellery brand Tanishq. And assisting them in doing so would be Tanishq’s diamond collection and the luxury store concept. Point to be noted here is that India’s diamond jewellery market is about Rs 100 billion and a good 70 per cent of this market comprises of the ultra rich.

The company is setting up its new stores in specialty malls. The pilot phase would see such stores in five malls across the country. At this moment of time, Tanishq derives 30 per cent of its revenues from diamond jewellery. Tata targets Rs 20 billion in revenues from Tanishq by this year-end from its 110 outlets spread across the country.

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Videocon, Larsen & Toubro and Oberoi group in news

By Vipin Agnihotri

Videocon acquires Planet M

Videocon, the Indian multinational has acquired Planet M, one of the leading music and entertainment retail chain for Rs 2 billion in order to reap the advantages of its brand image. According to sources, the acquisition has been done by NEXT, Videocon’s retail chain for consumer electronics and home appliances.

In my opinion, Videocon is highly ambitious with Planet M, which is a well-known brand amongst the youth. The group plans to increase its turnover by six fold, from about Rs 1.5 billion to about Rs 10 billion and then to Rs 20 billion in the next four years.

Larsen & Toubro negotiating with global shipping fleet owners

Larsen & Toubro is presently in the process of negotiation with global shipping fleet owners in order to realize its ambition of building ships worth over $ 1 billion. However, this big ambition has come to a halt because of the roadblocks laid by the Tamilnadu government.

It is worth mentioning in this regard that the shipyard will enable them to tap the growing domestic as well as global demand for ships. Because of its engineering expertise and competencies, L&T’s emphasis will be towards high end and high-tech ships. In general, L&T would be able to manufacture and repair as many as 25 big ships and 50 all types of ships respectively in a year. Moreover, the project will also garner employment to about 10,000 persons.

Oberoi Group chalks out expansion plans

Oberoi Group plans to invest about Rs 45 billion to augment its room capacity. Point to be noted here is that the amount will be invested over a period of five years. For the group, more than 15 projects are underway in various parts of Asia, Gulf and Africa. In India, the group is in the course of finishing its properties in Mumbai, Bangalore, Hyderabad, Gurgaon and Goa.

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Videocon not Abandoning Plans for SEZs in Bengal

By Dr Suvrokamal Dutta

It’s quite clear that Videocon has started feeling the pinch of setting up Special Economic Zones (SEZs) in Bengal. In an exclusive interview to The India Street, Videocon chairman Venugopal Dhoot said the group has sought a one-year extension from the Board of Approvals (BoA) for acquiring land for three SEZs near Kolkata. In terms of statistic, the combined land requirement of these SEZs is 5,560 acres.

"We have applied to the BoA for an extension," pointed out Dhoot. Though, he did not disclose when the application was made. It is worth mentioning in this regard that Videocon Realty & Infrastructures, the group company slated to undertake the SEZ ventures, was originally supposed to complete land acquisition by September.

In the closing stanza of last year, Videocon Realty & Infrastructures secured 'in-principle SEZ' status for two multi-product SEZs at North 24-Parganas (on 2,700 acres) and Kolkata-Kharagpur stretch (on 2,500 acres), and an electronics and IT SEZ on 360 acres at North 24-Parganas. According to BoA terms and conditions, companies have to get land within a span of one year bagging the 'in-principle' nod.

When asked whether there are any plans of abandoning any of the SEZ ventures, Dhoot said that at this moment of time company had no plans of abandoning any of the SEZ ventures. The pivotal factor here is that Videocon has already announced that it would give shares and jobs to one member of every family who would give up land for India SEZs.

Not so long ago, Salarpuria Properties and SEZ Infrastructure Developers too had said they planned to approach the BoA for more time, as they would not be able to finish land acquisition by September. Interestingly, both Salarpuria and SEZ Infrastructure Developers had also obtained 'in-principle' SEZ status for their Bengal projects in October 2006.

Early indications are that Salarpuria intends to establish an electronics and services sector SEZ on 250 acres in North 24-Parganas. On the other hand, SEZ Infrastructure Developers' would set up an engineering SEZ at Howrah on 262.5 acres. The state's own SEZ panel, whose main responsibility is to screen all the proposals before recommending these to BoA, is scheduled to meet this month to take stock of the progress made by firms planning to establish duty-free trade hubs.

State commerce and industries secretary Sabyasachi Sen has already said in public that Ramky Infrastructure's proposed multi-product SEZ on 2,530 acre at Mahishadal near Haldia would be delayed due to land scarcity. In general, Ramky bagged 'in-principle' SEZ status for the project on June 22. It is worthwhile remembering that protests land acquisition has already forced the state to abandon its plan to develop a chemical hub on 10,000 acre at Nandigram.