canbalajicashin itslocalchips? · 2019-12-15 · balajiwafers,istakinga bigleapontothenation-al...

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NEW DELHI | WEDNESDAY, 4 DECEMBER 2019 BRAND WORLD 15 . < VINAY UMARJI Ahmedabad, 3 December T he Gujarat-born brand, Balaji Wafers, is taking a big leap on to the nation- al stage. With a star endorser and a new campaign, the home grown wafers label that debuted inside a movie theatre in Rajkot (in its snacks canteen) more than three decades back, wants a place beside the Goliaths in the business. Experts say that this is the best time for a small brand to aim big, but warn that Balaji has two big challenges to con- tend with. One it is to still to crack the taste test, nationally and secondly it has to find a dif- ferentiator (other than price) to take on big chips makers—from PepsiCo Lay’s and ITC Bingo to Haldiram’s and others—who have been steadily localising their product and pitch. Is it ready for battle? Jay Sachdev, marketing manager of Balaji Wafers says the brand has been steadily building up the arsenal. He adds, “A strong dis- tribution network across the country is a must in order to become a national brand. We currently have 800 strong dis- tributors and the number is increas- ing. To be a credible choice nationally, the brand must also deliver more than the expectation of the con- sumer even at the lowest price point. We have both of these things on point. India being a diverse country also translates to diverse taste buds. Integrating that into our prod- ucts is something we are work- ing on, alongside our branding campaigns.” So far its colourful packag- ing and attractive price points have helped. The packaging was revamped around a year back, in keeping with a more youthful clientele the brand seeks, and now a set of ads have been released with popular actor Ayushmann Khurrana. All of this is in anticipa- tion of the brand’s national sojourn. Defined as savoury snacks including fruit snacks, chips/ crisps, extruded snacks, tor- tilla/corn chips, popcorn, pret- zels, nuts and other sweet and savoury snacks, the Indian mar- ket is worth around ~38,644.25 crore (2019), according to Euromonitor International. It is led by Lays, Haldiram’s and Bingo with Balaji Wafers at fourth position. Currently present in 10 states in the West and South, Balaji will need to define its positioning very sharply to take on the leaders say experts. “Balaji always comes up in our reports despite being a region- al brand and has a high brand recall in the markets it is pres- ent. But still they are a regional brand. They have not hit out as Haldiram has done. First thing the brand has to do is to think differently,” says CEO of TRA Research N Chandramouli. Sachdev explains that one of the changes brought about is a sharp focus on youth, whereas in the past the brand identified all ages as target groups. But in its current avatar, Balaji is specifically looking at millennial and post-millennial consumers. “Hence, we have changed our packaging design and are intro- ducing specific products that target such a young audi- ence.” Some of the new products being planned are stack- able chips (as in Pringles), Nachos, peanut and sesame chikki which it intends to market as 'India’s own pro- tein bar’. A bigger product portfolio points in the right direction, but Chandramouli believes stock keeping units (SKUs) will be critical for a national launch. “One has to have very fast mov- ing SKU in snacks to make it to large and medium retailers. Currently, this seems to be missing. Also, they will have to differentiate in this crowded category,” he said. Stacked chips, for him, do not amount to thinking differently. Harish Bijoor, founder Bijoor Consults thinks the brand ought to spend more time over its image and identi- ty. “You could have a great product but if your brand imagery doesn’t percolate into regions where consumers don't know you, it may not be suc- cessful. For now, Balaji Wafers sounds regional. They have to work on relevance and how the brand will resonate across 29 states. They need to keep in mind that they are not just 29 states but 29 separate regions and hence, strategies will vary accordingly,” adds Bijoor. Can Balaji cash in its local chips? With Ayushmann Khurrana as endorser and a big advertising splash, the regional savoury brand looks for a national footprint “You could have a great product, but if your brand imagery doesn’t percolate into regions where consumers don't know you, it may not be successful” HARISH BIJOOR Founder, Bijoor Consults Ayushmann Khurrana is the face of the brand in its ongoing campaign on TV and digital media “Balaji always comes up in our reports despite being a regional brand and has a high brand recall” N CHANDRAMOULI CEO, TRA Research > FROM PAGE 1 FinMin says S&P... The investment rate in Q2 stood at 27.6 per cent, the lowest in 11 quarters. What added to the glut of bad news was that for April-October, the Centre has breached its fiscal deficit target for the full year. While the government maintains the economy has bottomed out and that a recovery is expected from the October-December quarter, the avail- able official data so far for October is not encouraging. The output of the eight core sectors of the economy witnessed historically high levels of contraction in October. This is expected to impact overall industrial production because of the index of industrial production, which had contracted by 4.3 per cent in September, nosediving to an eight- year low. Also in October, lower receipts from processed petroleum exports and depressed global conditions led to mer- chandise exports contracting for a third straight month. Sales of vehicles in India declined for the seventh straight month, falling 12.76 per cent. Last month, Moody’s had cut its outlook for India’s credit ratings to “negative” from “stable”, citing the ongoing economic slowdown, finan- cial stress among rural households, weak levels of job creation, and the liq- uidity crunch in non-banking finan- cial companies (NBFCs). Moody’s has affirmed India’s Baa2 long-term sovereign rating, the second- lowest investment grade score, but said the negative outlook indicated that an upgrade was unlikely in the near term. Corporation tax... The collection numbers are expected to worsen further once the impact of the corporation tax rate cuts becomes vis- ible in the third advance tax collection instalment due on December 15. As an economy revival measure, Finance Minister Nirmala Sitharaman had on September 20 announced a tax rate cut from 25-30 per cent to 22 per cent for existing companies which do not avail of any exemptions, and 15 per cent for new companies, besides a reduction in minimum alternate tax from 18.5 per cent to 15 per cent. “The impact of the economic slow- down alone will hit the direct tax col- lection target by at least ~1 trillion, if we assume that the mop-up grows by 8 per cent as against the targeted 17.3 per cent growth. But even 8 per cent is highly overestimated with our collec- tions hovering at 1-2 per cent up to November,” said a government official. The impact of the corporation tax rate cuts could be in the range of ~70,000 crore and ~1 trillion, accord- ing to several estimates. “Collections are set to worsen in December, with the impact of the corporation tax rate cut to also get reflected,” said anoth- er official. Gross direct tax collection stood at ~7 trillion, of which ~1.5 trillion has been issued as refunds. The income tax depart- ment is expecting a cut in the direct tax collection target by at least around ~1.5 trillion in the revised estimates to make it a realistic one. India's gross domestic product growth fell to a 6-year low of 4.5 per cent in the sec- ond quarter ended September. The direct tax collection target was revised downwards by ~45,000 crore in the July Budget, from the estimates in the Interim Budget presented in February. Collection of advance tax - - corporate and personal income -- grew 6 per cent between April and September, as against 18 per cent in the year-ago period. Advance tax collection after the second instalment by September 15 stood at ~2.2 trillion. Tax buoyancy estimated this year, at 1.44, is higher than the 1.21 achieved last year. Auto price... The price hike announcement at this point may boost sales in the short-term if buyers advance their purchase, ana- lysts believe. Passenger vehicle sales in India have declined in 11 out of 12 months as poor economic growth has weighed in on buy- ers' sentiments. The GDP grew 4.5 per cent in the second quarter of FY20, mark- ing the slowest expansion in six years. The index of eight core infrastructure industries contracted 5.8 per cent for October 2019, hitting a new low. Among the eight segments, the steel industry witnessed a 1.6 per cent fall in October, worse than a 1.5 per cent drop in September. Led by festivals and steep discounts, passenger vehicle sales rose 0.28 per cent in October, over a year ago period. With the festive fervour drying up, sales slipped again in November. Soon after the Maruti announcement, a spokesperson at Mahindra and Mahindra said the company was "con- templating a hike in early January." A decision will be taken later this month. The increasing transition cost along with the rising discounts have put pres- sure on the firms’ expenditure, thereby hitting their bottom line, Nikunj Sanghi, MD & Founder of JS 4Wheel Motor Private Limited, pointed out. Toyota Kirloskar Motor is among the auto firms to have decided to bite the bullet . The company’s deputy managing director N Raja said the company was reviewing two price hikes--first from January 2020 after evaluating costs dur- ing the last six months and the second one on account of transitioning from BSIV to BSVI. The exact quantum of price increase could be decided by month end. At both Tata Motors and Hyundai, a decision could come soon. But spokespersons at these companies said that there was nothing yet on price hike. Rajesh Goel, senior vice-president and director marketing and sales at Honda Cars India, said, "Honda does not have a price increase plan from January. Going forward, as we sequentially introduce BSVI versions of our products, the rele- vant BSVI prices will be applicable." The ongoing offers on BSIV models might not be extended to BSVI models, he added. Sanghi explained that the quantum of price hike could be more for companies with a heavy diesel portfolio as com- pared to petrol. "Actually Maruti is most comfortably placed in terms of price hike hitting sales as they have withdrawn from the segment for BS VI vehicles," Sanghi said. According to Mitul Shah, analyst at Reliance Securities, keeping the slow- down in mind, the companies are likely to take the hike in phases rather than at the same time. "The real impact on demand can be gauged only after the price hike takes effect," said Shah. Easy: ±± Solution tomorrow HOW TO PLAY Fill in the grid so that every row, every column and every 3x3 box contains the digits 1 to 9 > BS SUDOKU # 2912 SOLUTION TO #2911 POSSESSION NOTICE (Under Rule 8(1)) Security Interest (Enforcement) Rules, 2002 SHOP NO.12,AIR FORCE ROAD, JAWAHAR COLONY, N.I.T., FARIDABAD-121005 DATE: 29.11.2019 PLACE: FARIDABAD Authorised Officer, Bank of Baroda Whereas, the undersigned being the Authorized Officer of the Bank of Baroda, Jawahar Colony, Faridabad Branch, under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Act No.54 of 2002) and in exercise of powers conferred under section 13(12) read with rule 3 of the Security Interest (Enforcement) Rules, 2002 issued a demand notice dated 10.04.2019, calling upon the Borrowers M/S. SUMAN ALLOYS through its Prop. Mrs. Suman W/o. Suresh Sharma and Guarantor Mr. Suresh Sharma, to repay the amount mentioned in notice being Rs.80,53,846.82 (Rupees Eighty Lakh Fifty Three Thousand Eight Hundred Forty Six and Paise Eighty Two Only) as on 31.03.2019, within 60 days from the date of receipt of the said notice with future interest and incidental charges w.e.f. 28.02.2019. The borrower having failed to repay the amount, notice is hereby given to the borrower/guarantor and the public in general that the undersigned has taken the Possession of the property described herein below in exercise of powers conferred on him/her under section 13(4) of the said Act read with rule 8 of the Security Interest th (Enforcement) Rules, 2002 on this 29 Day of November of the Year 2019. The borrower/guarantor in particular and public in general is hereby cautioned not to deal with the property and any dealing with the property will be subject to charge of the Bank of Baroda, Jawahar Colony, Faridabad Branch, for an amount of Rs.80,53,846.82 (Rupees Eighty Lakh Fifty Three Thousand Eight Hundred Forty Six and Paise Eighty Two Only) as on 31.03.2019 with future interest and incidental charges w.e.f.28.02.2019. The borrower's attention is invited to provision of sub-section (8) of the section 13 of the Act, in respect of time available, to redeem the secured asset. DESCRIPTION OF THE IMMOVABLE PROPERTIES (1) All that part and parcel of the property situated at Mustail No.14 Kila No.5, Tatarpur Palwal Measuring 781 Sq.yards. (2) All that part and parcel of the property situated at Khavit Khata No.90/107 Mustail No.14 Kila No.8, measuring 324 Sq.feet.

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Page 1: CanBalajicashin itslocalchips? · 2019-12-15 · BalajiWafers,istakinga bigleapontothenation-al stage. With a star endorser andanewcampaign,thehome grown wafers label that debutedinsideamovietheatre

NEW DELHI | WEDNESDAY, 4 DECEMBER 2019 BRANDWORLD 15. <

VINAY UMARJIAhmedabad, 3 December

The Gujarat-born brand,BalajiWafers, is taking abigleapontothenation-

al stage. With a star endorserandanewcampaign, thehomegrown wafers label thatdebutedinsideamovietheatreinRajkot (initssnackscanteen)more than threedecadesback,wants a place beside theGoliaths in thebusiness.

Experts say that this is thebest time for a small brand toaim big, but warn that Balajihas two big challenges to con-tend with. One it is to still tocrack the taste test, nationallyandsecondlyithastofindadif-ferentiator (otherthanprice) totakeonbigchipsmakers—fromPepsiCoLay’sandITCBingotoHaldiram’s and others—whohave been steadily localisingtheir product and pitch. Is itready for battle?

Jay Sachdev, marketing

manager of Balaji Wafers saysthe brand has been steadilybuilding up the arsenal. Headds, “A strong dis-tribution networkacrossthecountryisa must in order tobecome a nationalbrand.Wecurrentlyhave800strongdis-tributors and thenumber is increas-ing.Tobeacrediblechoice nationally,thebrandmustalsodeliver more thanthe expectation of the con-sumer even at the lowest pricepoint. We have both of thesethings on point. India being adiverse country also translatesto diverse taste buds.Integrating that into our prod-ucts is somethingwearework-ingon, alongsideourbrandingcampaigns.”

So far its colourful packag-ing and attractive price pointshave helped. The packaging

was revamped around a yearback, in keeping with a moreyouthful clientele the brand

seeks, and now aset of ads havebeen releasedwithpopularactorAyushmannKhurrana. All ofthis is in anticipa-tionof thebrand’snational sojourn.

Defined assavoury snacksincluding fruitsnacks, chips/

crisps, extruded snacks, tor-tilla/cornchips, popcorn,pret-zels, nuts and other sweet andsavourysnacks,theIndianmar-ket iswortharound ~38,644.25crore (2019), according toEuromonitor International. Itis led by Lays, Haldiram’s andBingo with Balaji Wafers atfourthposition.

Currently present in 10states in the West and South,Balaji will need to define its

positioningverysharplytotakeon the leaders say experts.“Balaji always comes up in ourreports despite being a region-al brand and has a high brandrecall in themarkets it is pres-ent.But still theyarea regionalbrand.TheyhavenothitoutasHaldiramhasdone.First thingthe brand has to do is to thinkdifferently,” says CEO of TRAResearchNChandramouli.

Sachdev explains that oneof the changes brought aboutis a sharp focus on youth,whereas in the past the brandidentified all ages as targetgroups. But in its currentavatar, Balaji is specifically

lookingatmillennialand post-millennialconsumers. “Hence,we have changedour packagingdesignandare intro-ducing specificproducts that targetsuch a young audi-ence.” Some of thenew products beingplanned are stack-able chips (as in

Pringles),Nachos, peanutandsesame chikkiwhich it intendsto market as 'India’s own pro-tein bar’.

A bigger product portfoliopoints in the right direction,but Chandramouli believesstockkeepingunits (SKUs)willbecritical foranational launch.“Onehastohaveveryfastmov-ingSKUinsnacks tomake it tolarge and medium retailers.Currently, this seems to bemissing.Also, theywillhave todifferentiate in this crowdedcategory,” he said. Stackedchips, for him, do not amountto thinkingdifferently.

Harish Bijoor, founderBijoor Consults thinks thebrand ought to spend moretimeover its image and identi-ty. “You could have a greatproduct but if your brandimagery doesn’t percolate intoregionswhereconsumersdon'tknow you, it may not be suc-cessful. For now, Balaji Waferssounds regional. They have toworkonrelevanceandhowthebrand will resonate across 29states. They need to keep inmind that they are not just 29states but 29 separate regionsandhence, strategieswill varyaccordingly,” addsBijoor.

Can Balaji cash inits local chips?WithAyushmannKhurranaasendorserandabigadvertisingsplash,theregionalsavourybrandlooksforanationalfootprint

“You could have agreat product, butif your brandimagery doesn’tpercolate intoregions whereconsumers don'tknow you, it maynot be successful”

HARISH BIJOORFounder, Bijoor Consults

AyushmannKhurrana is the faceof thebrand in its ongoingcampaignonTVanddigitalmedia

“Balaji alwayscomes up in ourreports despitebeing a regionalbrand and hasa high brandrecall”

N CHANDRAMOULICEO, TRA Research

> FROM PAGE 1

FinMin says S&P...The investment rate in Q2 stood at 27.6per cent, the lowest in 11 quarters.Whatadded to the glut of bad news was thatfor April-October, the Centre hasbreached its fiscal deficit target for thefull year.

While the government maintainsthe economy has bottomed out andthat a recovery is expected from theOctober-December quarter, the avail-able official data so far for October isnot encouraging.

The output of the eight core sectorsof the economy witnessed historicallyhigh levels of contraction in October.This is expected to impact overallindustrial production because of theindex of industrial production, whichhad contracted by 4.3 per cent inSeptember, nosediving to an eight-year low.

Also in October, lower receipts fromprocessed petroleum exports anddepressed global conditions led tomer-chandise exports contracting for athird straight month.

Sales of vehicles in India declinedfor the seventh straight month, falling12.76 per cent.

Last month, Moody’s had cut itsoutlook for India’s credit ratings to“negative” from “stable”, citing theongoing economic slowdown, finan-cial stress among rural households,weak levels of job creation, and the liq-uidity crunch in non-banking finan-

cial companies (NBFCs).Moody’s has affirmed India’s Baa2

long-term sovereign rating, the second-lowest investment grade score, but saidthe negative outlook indicated that anupgrade was unlikely in the near term.

Corporation tax...The collection numbers are expected toworsen further once the impact of thecorporation tax rate cuts becomes vis-ible in the third advance tax collectioninstalment due on December 15. As aneconomy revival measure, FinanceMinister Nirmala Sitharaman had onSeptember 20 announced a tax rate cutfrom 25-30 per cent to 22 per cent forexisting companies which do not availof any exemptions, and 15 per cent fornew companies, besides a reduction inminimum alternate tax from 18.5 percent to 15 per cent.

“The impact of the economic slow-down alone will hit the direct tax col-lection target by at least ~1 trillion, if weassume that themop-up grows by 8 percent as against the targeted 17.3 percent growth. But even 8 per cent ishighly overestimated with our collec-tions hovering at 1-2 per cent up toNovember,” said a government official.

The impact of the corporation taxrate cuts could be in the range of~70,000 crore and ~1 trillion, accord-ing to several estimates.

“Collections are set to worsen inDecember, with the impact ofthe corporation tax rate cut toalso get reflected,” said anoth-er official.

Gross direct tax collectionstood at ~7 trillion, of which~1.5 trillion has been issued asrefunds.

The income tax depart-ment is expecting a cut in thedirect tax collection target byat least around ~1.5 trillion inthe revised estimates to makeit a realistic one.

India's gross domesticproduct growth fell to a 6-yearlow of 4.5 per cent in the sec-ond quarter ended September.

The direct tax collectiontarget was revised downwardsby ~45,000 crore in the JulyBudget, from the estimates inthe Interim Budget presentedin February.

Collection of advance tax -- corporate and personalincome -- grew 6 per centbetween April and September,as against 18 per cent in theyear-ago period. Advance taxcollection after the secondinstalment by September 15stood at ~2.2 trillion.

Tax buoyancy estimatedthis year, at 1.44, is higherthan the 1.21 achieved last

year.

Auto price...The price hike announcement at thispoint may boost sales in the short-termif buyers advance their purchase, ana-lysts believe.

Passenger vehicle sales in India havedeclined in 11 out of 12 months as pooreconomicgrowthhasweighed inonbuy-ers' sentiments. The GDP grew 4.5 percent in the secondquarter ofFY20,mark-ing the slowest expansion in six years.

The index of eight core infrastructureindustries contracted 5.8 per cent forOctober 2019, hitting a new low. Amongthe eight segments, the steel industrywitnessed a 1.6 per cent fall in October,worse than a 1.5 per cent drop inSeptember.

Led by festivals and steep discounts,passenger vehicle sales rose0.28per centin October, over a year ago period. Withthe festive fervour drying up, salesslipped again in November.

Soonafter theMaruti announcement,a spokesperson at Mahindra andMahindra said the company was "con-templating a hike in early January." Adecision will be taken later this month.

The increasing transition cost alongwith the rising discounts have put pres-sure on the firms’ expenditure, therebyhitting their bottom line,Nikunj Sanghi,MD & Founder of JS 4Wheel MotorPrivate Limited, pointed out.

Toyota KirloskarMotor is among theauto firms to have decided to bite thebullet . The company’s deputymanagingdirector N Raja said the company wasreviewing two price hikes--first fromJanuary 2020 after evaluating costs dur-ing the last six months and the secondone on account of transitioning fromBSIV to BSVI. The exact quantum ofprice increase could be decided bymonth end.

At both Tata Motors and Hyundai, adecision could come soon. Butspokespersons at these companies saidthat therewas nothing yet onprice hike.

RajeshGoel, seniorvice-presidentanddirector marketing and sales at HondaCars India, said, "Honda does not have aprice increase plan from January. Goingforward, as we sequentially introduceBSVI versions of our products, the rele-vant BSVI prices will be applicable." TheongoingoffersonBSIVmodelsmightnotbe extended to BSVI models, he added.

Sanghi explained that thequantumofprice hike could bemore for companieswith a heavy diesel portfolio as com-pared to petrol. "ActuallyMaruti ismostcomfortablyplaced in termsofpricehikehitting sales as they have withdrawnfrom the segment for BS VI vehicles,"Sanghi said.

According to Mitul Shah, analyst atReliance Securities, keeping the slow-down inmind, the companies are likelyto take the hike in phases rather than atthe same time. "The real impact ondemand can be gauged only after theprice hike takes effect," said Shah.

EEaassyy::

Solutiontomorrow

HOW TO PLAYFill in the grid sothat every row,every columnand every 3x3box containsthe digits 1 to 9

> BS SUDOKU # 2912

SOLUTION TO #2911

POSSESSION NOTICE (Under Rule 8(1))Security Interest (Enforcement) Rules, 2002

SHOP NO.12, AIR FORCE ROAD, JAWAHAR COLONY, N.I.T., FARIDABAD-121005

DATE: 29.11.2019PLACE: FARIDABAD

Authorised Officer,Bank of Baroda

Whereas, the undersigned being the Authorized Officer of the Bankof Baroda, Jawahar Colony, Faridabad Branch, under theSecuritization and Reconstruction of Financial Assets andEnforcement of Security Interest Act, 2002 (Act No.54 of 2002) andin exercise of powers conferred under section 13(12) read with rule 3of the Security Interest (Enforcement) Rules, 2002 issued a demandnotice dated 10.04.2019, calling upon the Borrowers M/S. SUMANALLOYS through its Prop. Mrs. Suman W/o. Suresh Sharma andGuarantor Mr. Suresh Sharma, to repay the amount mentioned innotice being Rs.80,53,846.82 (Rupees Eighty Lakh Fifty ThreeThousand Eight Hundred Forty Six and Paise Eighty Two Only)as on 31.03.2019, within 60 days from the date of receipt of the saidnotice with future interest and incidental charges w.e.f. 28.02.2019.The borrower having failed to repay the amount, notice is herebygiven to the borrower/guarantor and the public in general that theundersigned has taken the Possession of the property describedherein below in exercise of powers conferred on him/her undersection 13(4) of the said Act read with rule 8 of the Security Interest

th(Enforcement) Rules, 2002 on this 29 Day of November of theYear 2019. The borrower/guarantor in particular and public ingeneral is hereby cautioned not to deal with the property and anydealing with the property will be subject to charge of the Bank ofBaroda, Jawahar Colony, Faridabad Branch, for an amount ofRs.80,53,846.82 (Rupees Eighty Lakh Fifty Three ThousandEight Hundred Forty Six and Paise Eighty Two Only) as on31.03.2019 with future interest and incidental chargesw.e.f.28.02.2019.The borrower's attention is invited to provision of sub-section(8) of the section 13 of the Act, in respect of time available, toredeem the secured asset.

DESCRIPTION OF THE IMMOVABLE PROPERTIES

(1) All that part and parcel of the property situated at MustailNo.14 Kila No.5, Tatarpur Palwal Measuring 781 Sq.yards.(2) All that part and parcel of the property situated atKhavit Khata No.90/107 Mustail No.14 Kila No.8, measuring324 Sq.feet.