Monte Carlo to foray in e-retail post its IPO

Monte Carlo Fashions would launch its own e-retail business after its IPO on December 3 as the public offer would help it meet the norms for e-commerce, a company official said here today. Monte Carlo Fashions is planning a public issue of 54.33 lakh equity shares having face value of Rs 10 each for a price consideration between Rs 630 and Rs 645. It aims to raise Rs 350 crore through the issue. “After IPO, we would have our own e-retailing business. It would be owned by the company,” said Monte Carlo Fashions Chairman Jawahar Oswal. As per the current FDI policy, companies having foreign investment are not allowed any business to consumer (B2C) activities in e-tailing.

monte carloSamara Capital, a Mauritius-based private equity firm holds 18.51 per cent stake through its affiliate KIL. “We could not operate our own website because we have FDI in our company… However, when we would be a public listed company, such restriction would go. Then we can run our own website, which is presently run by our group company,” said Monte Carlo Executive Director Sandeep Jain.
Post IPO, Samara Capital would retain 11 per cent stake in the company. The company, however, didn’t make it clear how it can go ahead with its e-commerce venture while Samara continues to hold stake in the company. To a specific query in this regard Jain said “after public listing of December 3, there would be no such restriction among us”. At present, the company is present on online space through various channel parters. “Right now, share of e-retailing is very low, less than 5 per cent, but it is going to grow in the coming year,” said Jain. Monte Carlo was launched in 1984 as an exclusive woolen brand by Oswal Woolen Mills Ltd (OWML) later in 2011 it was demerged into a separate entity. It operates 196 exclusive brand outlets in which 18 are company-owned and operated and 178 are on franchise model. It also has presence on 1,300 multi brand outlets.

– ET

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Lemon Tree Hotel to invest Rs 600 crore by next fiscal end

Hospitality chain Lemon Tree Hotel Company plans to invest around Rs 600 crore to open 900 rooms across India by the end of next financial year. “We plan to add 900 rooms across the country at an investment of around Rs 600 crore by the end of next fiscal year,” Lemon Tree Hotel Company President and Executive Director Rahul Pandit told PTI. Out of these, 750 rooms will be in the new five hotels the company will be opening across our brands while 150 rooms will be added in Delhi, he added. Founded in September, 2002 by Patu Keswani, Lemon Tree Hotels Company at present owns and operates 26 hotels in 15 cities with 3,000 rooms and over 3,000 employees. While the Vadodara hotel will be under the Lemon Tree brand, the three hotels in Gurgaon will be under brands Lemon Tree Premier, Lemon Tree and Red Fox. The hotel in Mumbai will be a Lemon Tree, Pandit said.

lemon treeHe was speaking on the sidelines of the launch of it’s Mega Sale-2015, a limited period offer that claims to give rooms at Rs 2,015/night across most of its hotels. The company operates hotels across its three brands–Lemon Tree Premier, which is a upscale brand, Lemon Tree Hotels that caters to midscale segment and Red Fox Hotels that is the economy brand of the company. Asked about the segment that the company is focusing on for future growth, Pandit said: “The focus is mainly on the domestic travellers. At present, 85 per cent of our guests are from this segment.” Domestic tourism is growing and will further grow as season and off-season lines get blurred, the frequency of travel increases and connectivity even by roads gets better, he added.

– ET

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Kent RO aims to be a Rs 1,000-crore firm by 2016-17

Water purifier maker Kent Ro Systems is aiming Rs 1,000 crore in revenues by 2016-17 on the back of rising demand for its products in non-metro cities and larger product portfolio. “Last year we finished at Rs 580 crore and this year we are expected to close around Rs 700 crore. Next fiscal I am hoping around Rs 850-900 crore and then over Rs 1,000 by 2016-17,” Kent RO Systems Chairman Mahesh Gupta told PTI. He added: “We are continuing with a year-on-year growth of 25 per cent. This year it was a little sluggish and would have 20 per cent growth.” Kent RO has set up a RO membrane unit at its Roorkee plant and is now producing most parts here. Earlier, the company was importing components from USA. RO membranes play the most important role in filtering impurities in water purifiers.

kent roThe company is now setting up another plant in Noida in Uttar Pradesh. “We have started a new plant in Noida which would come up by 2017. We are investing around Rs 100 crore which would be funded internally,” Gupta said. When asked about the product portfolio expansion, he said the firm is looking to grow in segments such as air purifiers, where it has recently launched a model.
“We are in process of that. One model has already been launched. Over the time, we are building up this space. In a year or more we would have more offerings to the market,” he added. Commenting on exports, Gupta said the company would expand its base in the Middle East. It is also exporting to Sri Lanka, Nepal and Bangladesh. “Right now we are exporting five per cent of our total production. We are targeting it to be 10 per cent in two years,” he said. When asked whether the company has any plan to go public to fund its future expansion, Gupta said “No. Right now we have no plan. It would be our last resort.” The company is spending around 10-12 per cent on market and branding which includes awareness campaigns for safe drinking water and ATL and BTL activities. Kent is one of the leading players in the estimated Rs 2,000 crore RO based water purifier market in India along with Eureka Forbes, Whirlpool of India and HUL. The sector has become competitive as firms as Panasonic, LG, TTK has jumped. “Competition in the market is a challenge for us, which is very prospective. The consumer would get more benefit from such competition. We would keep improving our product category and start deep penetration in the market,” he added.

– ET

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Hero MotoCorp to set up two plants in Latin America

Eyeing aggressive expansion in Central and Latin America, India’s largest two-wheeler maker Hero Moto Corp plans to set up manufacturing units in Brazil and Argentina, even as it expects upcoming plant in Colombia to help widen its reach in the region.
“We believe that the factory in Colombia will be a good hub for supply to other markets for us in Central and Latin America,” Hero Moto Corp MD & CEO Pawan Munjal told PTI. “We will get into manufacturing in Brazil. Argentina also requires us to manufacture locally, which is also on the cards. We would like to enter the Brazilian market along with the Rio Olympics in 2016,” he added. Hero MotoCorp launched six of its best-selling bikes here as part of its target to clock 1.2 million unit sales from global business by 2020.

hero motocorpThe two-wheelers rolled out include the 100 cc bikes – Splendor iSmart, Eco Deluxe, and Passion-Pro; the 125 cc Glamour; the 150 cc Hunk and the 225 cc Karizma ZMR. The bikes will be sold in 120 outlets spread across the country. This July, the company formed a wholly-owned subsidiary in Colombia and commenced construction of a state-of-the-art manufacturing plant in the country.
The project entails investment of $70 million in capital expenditure as well as working capital over a three-year period, he added.
“In the first phase we are going for manufacturing 75,000 to 80,000 units in annual capacity, going up to 1,50,000 units in next phase,” Munjal said on the upcoming unit in Colombia. With this, the New Delhi-headquartered Hero MotoCorp will be the first Indian two-wheeler company to have a manufacturing plant in Latin America. The plant in Colombia is expected to go on stream by the middle of 2015. Munjal said the company is looking to establish manufacturing and assembly units in 50 countries worldwide as part of its global expansion plans. By 2020, the company aims to be in over 50 countries with 20 plus assembly facilities globally.

– ET

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Rakesh Jhunjhunwala picks up stake in Spicejet

rakesh jhunjhunwalaAce investor Rakesh Jhunjhunwala’s Rare Enterprises today picked up 75 lakh shares of SpiceJet for more than Rs 13 crore through open market route, amid the no frills carrier facing tough business conditions. The share purchase comes days after SpiceJet said that a few parties have evinced interest in making investments in the carrier.  According to bulk deal details with the BSE, Rare Enterprises acquired 75 lakh shares. Based on the total number of shares of more than 53.5 crore at the end of September, today’s share sale would amount to about 1.4 percent stake. The shares were bought for an average price of Rs 17.88 apiece, valuing the transaction size at Rs 13.41 crore. Seller of the Spicejet shares could not be immediately ascertained. Spicejet shares surged 18.36 per cent to settle the day at 18.24 apiece, on the BSE. On 24 November, SpiceJet had informed exchanges that “a few parties have approached us and evinced interest in making investments…as the company has been exploring various options for raising fresh capital”.  It had also said that deliberations with prospective investors were “at an exploratory and preliminary stage”.

– ET

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