Turning around

Nusli Wadia is preparing to focus more on emerging industries. One of his legacy businesses he is eager to exit is ownership and management of his tea plantations currently being handled by his Bombay Burmah Trading Company, which also claims to be India’s second oldest publicly quoted company. High production cost and thin margins in unbranded tea have forced Wadia to consider following HLL’s footsteps and to some extent the Tatas, who of late have been moving away from the plantation arena. Wadia, however, has not quite closed his tea options completely and is mulling over entering the branded tea biz despite an exit from plantations. The grapevine has it that he might piggyback his branded tea business on the Britannia label. Wadia clearly realises the importance of moving out of legacy businesses and enter the fast-growing, profitable new age businesses. His son’s entry into aviation with GoAir has hogged the limelight for quite sometime now. He is also weighing options in real estate, that another son spearheads, as well as auto components. After struggling in the traditional businesses for sometime, Wadia looks determined on surging back even if it means discarding a few of his old businesses.

Wine on

Sham Chougule says he is set to acquire a UK wine trading company though he is reluctant to share even the name. Market watchers are aware that the company trades in a variety of wine brands across the globe. Chougule clearly does not wish to be left behind on the opportunity the UK market poses, seeing that the Indian wine industry is still nascent. With this acquisition, Chougule wants to market his Indian wines to the world and prove that they can compete at ease with New World wines.

Seeing the way Chougule has attracted investors like Anil Ambani, the time seems right for him for an international foray. Chougule has some successful Indian beer players like Karan Billimoria and Vijay Mallya as examples in the UK to look up to. Perhaps their success provided the push that Chougule needed to choose the UK for his wines.

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