Tags:
Journalism of Courage
O P Lohia of Indo Rama has always been known for taking on bigger battles than most. This time around, the promoters of Indo Rama Synthetics Ltd are set to enhance their stake in the company through the part-purchase of the holding by IFCI Ltd in the company.
The polyester major has also embarked upon a Rs 500 crore expansion plan. This is despite the fact that Indo Rama already produces an excess of 200 tonnes of polyester, to the 650 tonnes it is supposed to per day.
How come Lohia is displaying the courage to not only plan an expansion, but also increase production capacity? High polyester prices ruling currently are enough to give anyone the spur they need.
Reliance currently produces over five lakh tones of polyester in a year and Indo Rama8217;s expansion will result in the company producing five lakh tones too from June 2004. So while Lohia rests on his laurels and plans his next move to help conquer the polyester market, can we expect Reliance to announce plans of expansion?
When the lights dim
It seems even the mighty must bow down at one point. Ajay Bijli, promoter of PVR Multiplexes, doesn8217;t seem to be as sure of his footing in he multiplex arena any more. No longer having a monopoly on multiplexes in the city, Bijli seems to be trying his level best to beat the novices at the game.
So Bijli8217;s come up with the novel idea of a loyalty programme, to keep his grasp on PVR regulars. He8217;s even roped in Preity Zinta in the hopes of grabbing the consumer8217;s attention. Can8217;t blame him for worrying, after all with the advent of the 3Cs and Satyams of the world, he can8217;t loll back in his armchair and take it for granted that the footfalls at PVR will remain the same. Of course the loyalty programme is simply the top layer of the cake and there8217;s much more in the pipeline. Maybe even a price cut is in the offing. Might as well lounge back in those cushy movie seats and wait and watch while the action thickens off screen.
Change of wardrobe
Ever since Gautam Singhania took over, Raymond seems to be widening its horizons. Not satisfied with the status quo Gautam Singhania has decided to forge ahead with his latest acquisition.
How does Raymond gain by this acquisition? Till now Raymond wasn8217;t much of a player in the ready-to-wear casual clothes segment. But thanks to ColourPlus being added to its stable this will no longer be the case. But Gautam Singhania8217;s latest venture is much more than a simple step to make a dent in the ready-to-wear segment.
Instead of focusing on developing and launching its own brands, Gautam Singhania is obviously trying to take advantage of the company8217;s massive retail network of 270 exclusive Raymond stores across 120 cities.
Also, although Raymond has dabbled in the ready-to-wear segment before, it never seems to have been able to popularise or contemporarise the Raymond retail brand. So rather than fighting with an existing brand to own a segment, Gautam Singhania has t aken the wiser decision to simply make an acquisition.
But will Raymond be able to integrate its new acquisition with its existing businesses? There are too many dichotomies present in this acquisition. Till then Gautam Singhania seems to be pulling out all the stops or at least trying to give Raymond a much-needed spur to keep up with the demands of the apparel 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
