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For some time in the recent past a name that was smashed around by the media like a tennis ball was that of M. Damodaran. His company was on the helm of a disaster and about to go under. Angry investors had vowed never to put their money behind government securities again. But now various government departments have finally huddled together to give its besieged sibling a helping hand. It’s now time for the chairman of the Rs 42,823 crore UTI to finally exhale. But a little probing reveals the government is only standing guarantor for Damodaran’s short fall and not the entire amount. That means a unit priced at Rs 10 with an NAV of Rs 6 only ensures guarantee for the shortfall; that is Rs 4. So even the allotted Rs 15,000 crore as bailout may not be enough and Damodaran may find himself caught between a dragon and the rough sea a year later. That’s only half the reason for the concern. As unlikely as it may sound, but if in May 2003 all the investors of the US-64 scheme decide to cash in, the shortfall would exceed Rs 12,000 crore. If added up the amount of cash UTI will need if all ASRs and US-64 investors decide to pull out is a mind-blowing Rs 17,000 crore. He is working against time to deliver an assured return to his investors. He is now offering sops ranging from inflated dividends to tax benefits to all investors. But it is still anyone’s guess how many investors will pull out in May 2003, something that probably keeps our tycoon up at night. Phew! What a job.

Waterworld

Why is Bisleri’s big boss, Ramesh Chauhan, looking even more dejected with the survey results? Chauhan is claiming that ORG-MARG’s figures are inaccurate and one-sided. ORG-Marg has refused to comment, while Coca-Cola of course claims that the figures are accurate. According to Chauhan though, Bisleri outsells Kinley by a one to four margin. It’s not difficult to understand why Chauhan is refusing to eat humble pie and accept his defeat. Ramesh Chauhan, if one recalls, was the sole ruler of the cola empire in India till Coca-Cola made an entrance. Seeing the opportunity of a lifetime, Chauhan sold out his Parle brand of aerated drinks to Coca-Cola for a reported amount of $40million, in the hopes of building up his Bisleri business. And one must admit that Chauhan did a very good job of establishing Bisleri in India. Thanks to his marketing of the brand, Bisleri has become synonymous with mineral water in India. And that is what makes Chauhan’s so-called defeat in the ratings game even worse. Little did Chauhan know, when he sold out Thums up, that Coca-Cola had Kinley up its sleeve. Even less did he expect that one day the very company he had helped to win the Indian markets would turn around and claim they have beaten him at his new game. Instead of claiming foul play, maybe this time Chauhan will roll out plans for establishing Bisleri’s undisputed eminence in the Indian market.

(Dilip Cherian, runs a public affairs firm Perfect Relations. He is an economy watcher and tycoon tracker. None of the people he writes about are his clients. Your insider tales are welcome at dilipcheriannow-india.net.in)