Another bag under his arm

The competition between tycoon Dilip Piramal undaunted by family issues and Samsonite, has been hotting up. To counter it, the tycoon has se...

The competition between tycoon Dilip Piramal undaunted by family issues and Samsonite, has been hotting up. To counter it, the tycoon has set many strategic moves in motion. One of them was buying the world8217;s fourth-largest moulded luggage maker Carlton. This, the tycoon did, once the brand went bankrupt, for a paltry sum.

That brand8217;s manufacturing equipment for all its hard and soft-sided luggage, its entire range of award-winning designs etc were all taken over by the tycoon. The tycoon now also benefits from Carlton8217;s strong brand identity in Europe, which will help his VIP products, which are already in the markets of Germany, the Middle-East, Hong Kong, Africa, France, the UK, Italy and Spain. So the luggage king now has three of the world8217;s four major brands under his control, VIP, the French company Delsey, the world8217;s third-largest luggage manufacturer and Carlton. The tycoon has also set up a wholly-owned subsidiary in London, which he is using to boost his export efforts. But getting Carlton was the big achievement for the tycoon, especially as he had to outbid his favourite competitor 8212; moulded luggage giant Samsonite 8212; for it. Piramal8217;s VIP was already the world8217;s second-largest moulded luggage company before it acquired Carlton. Now with it, he has increased his capacity by 80,000 units. The tycoon, sure is, aiming for the number one position in moulded luggage, or is it number one in the luggage world!

Deeper into the farmlands

After some unpleasant experiences in its high-profile but messy tryst with contract farming in Punjab, Mahindra is out on a correction path. The company would be leveraging its brand name for selling seeds and pesticides. Pesticides, being largely generic formulations, are easier to sell on the strength of the Mahindra brand name alone. Seeds, however, are a different ball game, as farmers need to have confidence in the brand before they try out a seed. The group currently outsources both seeds and pesticides.

Mahindra has also struck a smart deal with Punjab Agro Industries Corporation PAIC for providing extension services to the farmers. The deal is a double whammy 8212; it generates goodwill for the brand and most importantly, picks up market intelligence through the same, while PAIC foots the bill. Not a bad idea! Even though the company plans to go all out to strengthen its agri-input business through the Krishi Vihar network, it would however stay away from financing the farmers for their purchases, as it was doing in the past through banks like IDBI and SBI. The company, perhaps, has discovered that the Punjabi farmers are a cash-rich lot unlike their counterparts elsewhere in the country and hence don8217;t need much credit. However, the Mahindras would continue to finance farmers down South. The decision makes sense in the light of its bad experience with financing last year, when it had run into serious trouble with financial institutions over who should bear the brunt of the loan defaults. Learning clearly has its advantages.

Second-time lucky?

With a turnover exceeding Rs 50 billion, and 18 manufacturing units which once made him the market leader in consumer electronics and home appliances, Venugopal N. Dhoot still had one desire unfulfilled.

In the early 1990s, the tycoon was keen on joining the power sector. This, he wanted to do by setting up a Rs 4,500 crore North Madras 1,050 MW Power project. But unfortunately, due to unfriendly and unstable government policies then, as well as bankers with little inclination in the risks involved in funding his project, many like the tycoon were left with their powerful dreams unfulfilled.

Now luckily for Dhoot, the times are changing. And so has the government. With the passage of the new Electricity Act, hopes in the tycoon8217;s heart for his dream project was again rekindled. Now he has jumped at the chance of completing it. The tycoon will take advantage of his past experiences and set up a 100 MW gas based plant at Goa, which will see investments of up to Rs 350 crore, from internal accruals only. Will he be second-time lucky?

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