Personal finance Wednesday

Birla Sun Life MF launches 90 days plan; Kotak Mahindra MF floats 370 days plan; Religare MF unveils 370 days plan; YES BANK enters strategic alliance with NCMSL for collateral management & warehousing services; Punjab & Sind Bank IPO opens on 13th December

Birla Sun Life MF launches 90 days plan

Birla Sun Life Mutual Fund has launched Birla Sun Life Short Term FMP–Series 3, a close-ended income scheme.

The plan seeks to generate income by investing in fixed income securities maturing on or before the duration of the plan. The plan will have duration of 90 days from the date of allotment. The exit load is nil. The new issue opens on 8th December and closes on 9th December. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Fund Index is the benchmark index. Kaustubh Gupta is the fund manager.

Kotak Mahindra MF floats 370 days plan

Kotak Mahindra Mutual Fund has launched FMP Series 28, a close-ended income scheme.

The investment objective of the plan is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The tenure of the plan will be 370 days after the date of allotment of units. The exit load is nil.

The plan offers growth and dividend (payout).The new issue opens on 8th December and closes on 9th December. The minimum investment amount is Rs5,000.

The benchmark index of the plan shall be CRISIL Short Term Bond Index. Deepak Agarwal and Abhishek Bisen will be the fund managers.

Religare MF unveils 370 days plan

Religare Mutual Fund has launched Religare Fixed Maturity Plan-Series IV-Plan A to F-Plan E, a close-ended income scheme.

The investment objective of the plan is to generate income by investing in debt and money market instruments maturing in line with the duration of the plan. The plan offers growth and dividend (payout). The tenor of the plan is 370 days.

The new issue opens on 8th December and closes on 9th December. The minimum investment amount is Rs5,000.

YES BANK enters strategic alliance with NCMSL for collateral management & warehousing services

Yes Bank has entered a strategic partnership with National Collateral Management Services Ltd (NCMSL), an agri-infrastructure player, for collateral management and warehousing services.

The objective of these services will be to assist industries, traders and farmers in financing their capital requirements at all stages of the supply chain, ranging from pre-harvesting to the marketing and export stages. Yes Bank will also avail of their premium services such as working capital financing in commodity-based industries, especially agro-based industries.  

Punjab & Sind Bank IPO opens on 13th December

Punjab & Sind Bank will enter the capital markets with an initial public offering (IPO) of four crore equity shares of Rs10 each. The price band for the issue has not been fixed yet.

The Bank is a government of India undertaking bank started in Amritsar. They are one of 19 nationalised banks in India. The primary business of  the Bank is taking deposits and making advances and investments, and is divided into retail banking, corporate banking, priority sector banking, treasury operations and other banking services such as agency functions for insurance, distribution of mutual funds and pension and tax collection services.

The issue opens on 13th December, and closes for subscription on 16th December. The equity shares of the issue are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.

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Nothing to toast about: Wine sales haven’t picked up despite industry’s efforts

Not so long ago, wine producers believed they could expand the market in India significantly. It has quite turned out that way as demand is sluggish and they are burdened with unsold stocks

Four years ago, wine producers dreamed of expanding the growing interest in wine in the country. Today, those dreams remain unfulfilled as the industry struggles to squeeze out any worthwhile gains.

India is believed to be one of the fastest growing markets for wine. In fact, it's not only about wine, but it's among the fastest growing markets for several items-from food and clothing to fun and entertainment-with demand being generated from a fast-growing consumer class.

So, in 2007, the wine makers drew up big plans hoping to introduce the uninitiated to a new taste. And there was good reason for such hope. Domestic wine consumption had grown to about 10 million litres that year from just one million litres in 2001.

They introduced wine-tasting sessions that were well-received, held wine exhibitions that were well attended and wine producers even set up visits to vineyards, combining education with pleasure. Sure, these programmes have reached many who didn't know much about wines, but it hasn't helped expand the business much.

Why has acceptance been slow? Hemant Walunj, assistant winemaker with Vallée de Vin, believes, "People do participate in wine-tasting events and farm visits, but when it comes to actual buying the wine, many people do not. Price is the major factor, as wines cost a lot more compared to other liquors." Vallée de Vin (the name means valley of wines) produces and exports wines from its unit near Nashik, Maharashtra. 

Subash Arora of the Indian Wine Academy blames the sluggishness on government policy. "One of the reasons that the wine industry hasn't performed as expected is that government policy is not conducive for selling of wine in India."

The global financial crisis may also have something to do with it, as the market for wine which was growing at about 28% up to 2007, has dropped thereafter by nearly 30%.

A year ago, Moneylife reported that large stocks of unsold wine could result in winemakers selling their products at reduced prices. For example, Sula Wines, one of the major producers, had about 40-50% of its wine stocks lying unsold in its tanks; it was worse with Indus Wines which had around 90% of unsold inventory.

In fact, a combination of low demand and damage to grape crops due to unseasonal rain over the past two years has resulted in the prices of wine remaining stable.

"Producers will first look to dispose off unused stocks. Even production is undertaken on the basis of the unsold stocks. But this is not the right way to go about the business," says Mr Arora. "Good marketing and branding strategies are required."

On the issue of prices, Mr Arora believes that while there is good demand in the domestic market, Indian wines have a narrow international market, catering to restaurants serving Indian food.

Ankush Mittal, director, Mittal Vineyards, also based in Nashik, does not expect prices to rise. "For the past two years the wine industry has stagnated due to recession. Production was increased in anticipation of a rise in demand which hasn't happened. So there is hardly any scope for rise in wine prices," says Mr Mittal. "However, if we have unseasonal rain next year also, the scenario could be different." 

Clearly, wine makers have a lot to deal with, to turn around this situation. Of course, they will hope that the initiatives they have launched will not be wasted. Gaurav Chitnis who operates Unity Wine Tours, is encouraged by the response so far. "Business has been quite consistent. A lot of people are getting aware of the wine industry with many wine-tasting festivals held across cities. People continue to be interested in grape farm tours."

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COMMENTS

TAK

6 years ago

If there is a glut, why are the wineries keeping prices so high.
Prices for a Sula or a Grovers Cab need to be no more than Rs300- per bottle or 50% of the current prices.
Also beer and wine licences should be unified for restaurants. There are so many restaurants in Bangalore that serve beer but are not able to serve wine since it probably needs an additional licence.

VitaBellaWine

6 years ago

Nice analysis! VitaBella Wine Daily Gossip brings together some articles exclusively about Wine, read on the internet over the last 24 hours. This is a good article selected today by http://www.vitabella.fr

Manoja

6 years ago

The stupidity of the wine producers is the major reason for the wine sales not taking off.

Wine producers in Maharashtra forced the government to levy additional duty on wines not produced in Maharashtra. The same was replicated in Karnataka by the wine producers here. The loser was the end user. The prices of wines shot up by a couple of hundred rupees at the minimum, the additional charges on account of increase in taxes. Neither the producer nor the consumer got benefit out of this stupid move.

As a regular wine drinker, I have one word of advice for the wine producers. Get rid of this stupid tax structure and you will see multifold growth in the sale of wine in this country.

November exports up 26.8% at $18.9 billion

New Delhi: India's exports in November rose by 26.8% to $18.9 billion year-on-year, prompting the government to exude confidence that the outbound shipments will touch $215 billion this fiscal, reports PTI.

"Exports are doing pretty well... at this rate, four months from now it (total exports) could be in the range of $210-$215 billion," commerce secretary Rahul Khullar told reporters here today.

This is higher than the target of $200 billion for 2010-11, set by the government.

Mr Khullar added that the November figures may be "revised upwards" as more export numbers would be coming in.

During the April-November period, exports were worth $140.3 billion.

Imports also grew 11.2% in November to $27.8 billion. The trade balance in the month was $8.9 billion.

Mr Khullar said India is likely to end up the financial year with a trade of gap of around $120 billion, which he said is "manageable".

Exports sectors which performed well during April-November period include engineering goods, petroleum and refinery items and cotton yarn.

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