New Yarn

Why Africa?

Ratan Tata’s coffee company is keen on setting a facility in Uganda. But why should they be interested in Uganda? The moves indicate that being based in Uganda they enjoy duty-free exports to countries like Russia, Japan and even the US markets. Meetings with the Uganda Coffee Authorities and the Government of Uganda have further brewed the intentions of the Tatas. Another country that is being considered a similar foray is, Vietnam. It seems that Tata is insistent on raising the “production of coffee” this year by investing in such global ventures.

With a significant growth in instant coffee exports being planned it would seem an ideal set of moves to make money by evading the unnecessary duties. But workers in the field however already in a bit of gloom about whether this will mean that coffee workers have to worry about their livelihood.

Ever ready for more

Even though the battery industry has been growing at 12% per annum, it clearly has not been captivating enough to hold tycoon B.M. Khaitan’s attention. So, the tycoon has now chosen to add one more product to his FMCG collection.

This he hints will also be a non-battery product, yet one that also needs batteries to operate it. Yes, the tycoon is keeping this product a mystery, though he has declared that it will be outsourced from a unit in North India. The introduction of a new product could not have been done at a more appropriate time; the tycoon is celebrating Eveready’s centenary year.

Khaitan’s latest aim is to achieve sales of two billion batteries over the next three to four years, for which he has cleverly begun increasing his exports. But in spite of all its brand value, the tycoon is definitely more charged up thinking of his new product launch, than merely his increasing battery sales! Given that his brand is already valued at Rs 600 crore, he has reason to believe that the next move can only be a winner.

dilipcherian@hotmail.com