Cello146;s plastic story

Ghisulal Rathod8217;s Cello brand of plastic containers continues to be a hit with consumers, but the tycoon sees an opportunity for divers...

Ghisulal Rathod8217;s Cello brand of plastic containers continues to be a hit with consumers, but the tycoon sees an opportunity for diversification into plastic cartons, for packaging apples, which he is naturally going to do at his Baddi plant in Himachal, home of India8217;s apple supplies. His first batch of 10 million apple cartons are expected to hit markets by mid-June. Rathod claims that these cartons, using Italian technology, are being made for the first time in the whole of Asia. He has been stressing on the money farmers will save if they use these cartons. Rathod believes that though paper cartons are cheaper they run the risk of damage during transportation especially in the monsoons.

But the pricing of the product is creating a buzz. Each plastic carton will cost twice as much the price of a paper carton. In an attempt to bring down the eyebrows rising on this outrageous 8216;pricing proposition8217;, Rathod claims that these cartons can be recycled. Hopefully the prospect of recycle would make the proposition a lot more alluring to farmers.

That8217;s not all; the tycoon is also planning to export the product, as he insists that exporters too have shown interest in the product. But it is the quality of the product that will be the deciding factor for Cello8217;s new cartons and farmer acceptance will be the acid test.

New World

B.K. Ruia clearly relishes the plaudits coming his way after the successful turnaround of formerly ailing public sector Jessop Engineering, which his group had taken over two years back. Enthused by his success, this Rs 500 cr Kolkata-based group is now planning to set up a rather small 1 million tonne steel plant, as part of a backward integration plan. This certainly makes business sense, as Jessop is expanding activities in railway wagon and coach manufacturing, ship building and steel girders for bridges and flyovers. For Ruia, who has no prior experience in managing a steel plant, it8217;s clearly early days in 8216;steel territory8217;.

However, the tycoon is still quite undecided about the location, which naturally would be dictated by the availability of raw material. Though the West Bengal government has shown him some locations, Ruia is keeping his options and looking around other states like Orissa and Jharkhand, which could offer a relatively better deal. The mini steel plant with an investment of nearly Rs 1,500-2,000 crore is probably born out of the tycoon8217;s desire to reduce his dependence on the textile sector, which today contributes 50 per cent of his company8217;s total turnover. Brave new world indeed.

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