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Anchor Final Black
Anchor Final Black
History
According to Damjibhai, a Bengalibabu lived across his shop
and he would often prod his father to go into industry as it had
more money than shop. Damjibhais family liked this advice and
decided to start a new enterprise. In fact, this turned out to be
a turning point for them.
That Bengali Babu was involved in this new adventure not as a
partner but as one of the employees. A plot of land measuring
900 sq ft was purchased in the compound of Bombay Talkies in
Malad. They installed dies, mould and tool-making machinery.
Since the Bengali Babu was together, the company was named
K B Industries, K standing for Kutchi and B representing Bengali
Babu.
But the project which was started in 1960-61 did not last long.
It ran into losses and at times there were problems paying
salaries to workers. Damjibhai says that in this venture his
uncle Vasanjibhai Velji was with them. We had to depend a lot
on our workers and at the end of two years we decided to lock
away the factory.
Often failures become stepping stone to success. Though K B
Industries closed down, it left a burning desire in Damjibhais
mind to do something new. This time he wanted to try his luck
in manufacturing and decided not to involve the Bengali Babu
with him. Those days electrical switches imported from Italy
were hugely popular in India. These switches were not very
complex and besides in Damjibhais factory whatever die and
moulds were made they were electrical items related, so he
had a fairly good idea of electrical items.
Around 1963 Damjibhai decided to start manufacturing of piano
type fancy switches in the Bombay Talkies compound. His uncle
parted ways as he was not inclined to join the new venture.
its portfolio includes white toothpaste, gels, toothbrushes, tooth powders and
soaps. Anchor White toothpaste, with Bollywood star Kajol as its brand
ambassador, along with Anchor Gel and Dyna soap are its flagship brands. They
are big volume grossers. AHBCs manufacturing facility is in Himachal
Pradesh.
Sources said the FMCG portfolio is expected to end the fiscal with a close-to Rs
400-crore topline and the promoters are looking at three to four times current
sales. Thats Rs 1,200-1,600 crore as a fair value for the business and brands.
However, AHBC promoter and Managing Director Atul Shah denied any such
plans. We deny this. A lot of people are speculating. We dont have any such
plans of an exit. No mandate has been given to anyone, he told Business
Standard. An e-mail sent to CFO Navin Patel did not elicit any response.
Analysts said AHBC gave heavyweights like HUL and Colgate Palmolive stiff
competition by launching its 100 per cent vegetarian Anchor White toothpaste.
Its positioning, competitive pricing and higher trade margins forced market
leaders Colgate and HUL to retaliate by dropping prices in an effort to retain
consumer loyalty.
Today, the Rs 3,000-crore oral care market is dominated by three big players:
Colgate Palmolive, HUL and Dabur, who between themselves control over 85
per cent marketshare. Anchors oral care portfolio is estimated to have a 4-5 per
cent share, said sources.
ABHC positioned Dyna Soaps, with its four variants, in the premium category
with Bollywood actor Katrina Kaif as brand ambassador. Sources add that Dyna
has been growing faster than many other in-house brands of the group.
Dyna was launched in 2006, and the company claims that within a year it
became the first new beauty soap in over a decade to enter the league of top 10
national soap brands. Sources say Dyna today has close to 3 per cent share in
the Rs 8,000-crore domestic soap market, which is controlled by deep-pocket
players like HUL, Godrej and Wipro.
Consolidation, therefore, will be a recurring theme. Bigger and more focused
players that have very strong distribution are able to scale up their business and
its becoming difficult for smaller players to compete. Also if you are not
dominant in your key categories, then the diversification route will be also
tough. Big, established players with marketing muscle will also put a premium
on innovation, while R&D will tend to suffer in smaller players, said a
Mumbai-based FMCG analyst, who did not want to be identified.
Sources said ABHCs FMCG portfolio will elicit considerable interest among
existing players, or newer entrants seeking to enter India. HUL or Dabur may
be keen to look at Anchor for its oral care brands. Likewise, Wipro or Emami
may be interested in Dyna to increase their marketshare, said an industry
source privy to the developments.
Generally speaking, homegrown brands are growing at a robust pace. Thats
why the nomenclature. Many such brands are actually growing faster than many
of the established global peers. But to divest a business or a brand is a pure
finance and business decision, said Jagdeep Kapoor, managing director at
Samsika Marketing Consultants, who has advised the Anchor group in the past.
Kapoor, however, refused to comment on any specific deal.
Sources said that in the past, the Shah cousins looked at the possibility of
transferring the FMCG business from one family to another as an inter-promoter
group transfer. But they had failed to come to a consensus on valuations. This
time, both sides of the family seems to be ready to explore divestment options.
Forty-year-old Anchor Group, recently in the news for being part of the
promoter consortium of the Kochi IPL team, has several business interests,
including real estate and writing instruments. Shah brothers Damjibhai and
Jadavjibhai started their business empire in 1963, but now their sons run the
day-to-day management. Damjibhais sons, Atul and Sanjay, manage the FMCG
portfolio. Their younger cousins, Mehul and Hemang, focus on the real estate
and writing instruments businesses, as well as the Kochi IPL team. They were
also looking to enter the paints segment.
This is not the first time the promoters have explored options to exit a business.
In 2007, they sold 80 per cent stake in the flagship electrical business, which
controlled two-thirds of the market, to Japans Matsushita Electric Works
owners of the National and Panasonic brands for a little over Rs 2,000 crore.
In the same year, they also sold their consumer electronics business, Anchor
Daewoo, to Chinese appliances company Haier for an undisclosed sum.
In 2009, ABHC reportedly toyed with the idea of selling Forhans, one of the
countrys oldest toothpaste brands, to drive the growth of its successful in-house
brands. In 2007, Anchor had acquired Forhans for an undisclosed sum from
John Oak Remedies, an Indian company, which in turn bought it from Wyeth,
the global pharma major, in 2005.
Manufacturing.
Anchor by pannasonic manufactures its products in the four locations of
Daman, Kutch, Haridwar, and Roorkee, through 14 integrated units.
The manufacturers have purchased large land units where factories have been
set up which consist of a inbuilt tool room store house ware houses moulding
machines etc. the switches are made of 2 different types of raw materials
basically which are polycarbonate and urea plastic powders. they manufacture
more than 5 different kind of ranges and each range consists of more than 150
types of different products. they also are into manufacturing of led lights cfls
wires and cables and also fans etc.
The manufacturing units consists of skilled labour who make the dyes. the skill
is used for precision work of designing the dye so that the moulds are perfect
and the end product can be further made easily.
Secondly the unit consists of a large amount of domestic labour who do the
fitting work. basically to make a switch we need to combine the moulds and the
other raw materials such as screws, brass contacts, spark shield, jhullas etc.all of
this is done by the labour.
There is a different unit in the same factory which deals with the packing of the
products. when the products are assembles they are put into small plastic packs
and are further packed into boxes. each box contains 10pcs which is the
standard packing. then these boxes are further filled in a carton and then sold to
the retailers whole sellers etc.
Manufacturing units also have supervisors for each and every unit. each unit is
supervised by one manager. a different manager is kept for the warehouse who
provides with the stock available stock dispersed and the daily sails from that
particular manufacturing unit
Anchor has a direct presence across the country. With a vast Sales & Dealer
network, it has undertaken a rapid expansion program. Every state has a
dedicated manager who overlooks the daily operations and a team that is highly
motivated to impart to its end users the total value for their money.
Headquartered in Mumbai Anchor has a massive presence with 4 Regional
Offices, over 23 state sales headquarters and with a total 37 Sales offices and is
still expanding.
Regional Office
State Office
Sales Office
12 Sales Offices
4 Regional Offices
23 State Offices
5,000 Authorized Stockists
400,000 Retail Outlets
450,000 sq.ft of warehousing space across
the country
Products.
Fans
Ceiling fans are designed using ADM (Aerodynamic mechanism) with
computer aided alignment. These are manufactured in their Dhamdachi plant.
The working practice are aligned to the requirements of ISO 9001:2008. This is
done to ensure consistency in the quality of products but also provides useful
feedback as a base for continuous improvement. They are also venturing to
design and manufacture fans that are energy saving, in line with the
environment philosophy of Panasonic in the near future. Below is the list and
bifurcation by brands and type:
Ceiling Fans - Lugano, Venice, Precedent, Dura, Flora, XL, Royal Gold
Plus, Royal Gold, Penta Turbo, Flo, Flo GS, Lamini
Cliental.
Sr No
Organisation
Location
Mumbai
TATA Housing
Boisar,Mumbai
BKC, Mumbai
Shoppers Stop
PAN INDIA
YES BANK
YES BANK
PAN INDIA
ONGC
Godrej Properties
Reliance Industries
Future Group
Home Town
PAN INDIA
10
SBI
SBI
PAN INDIA
11
JET AIRWAYS
International Airport
12
L & T Ecc
PAN INDIA
PAN INDIA
13
Adani Infrastructure
Bhuj, Gujarat
14
Axis Bank
Axis Bank
Uran, Mumbai
Planet Godrej
Byculla, Mumbai
Nagpur
Mumbai, Banglore
1. Selling ISI standard switchesSelling ISI standard switches is not quite a big thing now but
when anchor first came in to the market there was no
competitor selling ISI marked switches. Basically the idea
behind this was to gain the confidence of the retailers and end
users and to make them believe that the products sold to them
are of high quality. To have an ISI mark was much pain as the
rules were very rigid every factory was supposed to have a lab
where the quality of the switch is checked,heat test is done,
screw testing is done etc. Every company could not do all of
this because all of them did not have the capital and the view
that it would affect the sale of the company. After gaining the
ISI mark all of the companies started to do the same as it
started becoming important. Having an ISI mark on the
switches boosted the sale of the company greatly and from
here Anchor started growing.
shutter the name got aquainted to them this way at a very low
cost Anchor did a great marketing campaign.
3. Free SchemesWe all know that in the world free things are always welcomed.
To buy anything we need to pay money but when it comes free
we get a different type of satisfaction, a feeling of achievement,
the marketing team of anchor thought that giving free
scheemes was a great idea which would attract many more
retailers and wholesellers to sell the product in the market. the
company launched a scheme of giving free switches with a lot
of products for example the company promised to give 10
switches free along with every 100 switches ordered by the
whole seller from the company. this was a great deal for every
whole seller as if he would purchase 1000 switches he would
get 100 switches free. it was an additional 10% discount which
no distributer wanted to leave as this was reducing the
purchasing cost of the distributer and widening the profit
margins. because of this the distributer also could manipulate
discounts further to its retailers and create competition in the
market attracting a huger number of clients in the market.
4. Display Boards And Table TopsThe next step was to decorate the tables of the retail shops and
even the walls by the company for the retailers. By doing this
they decorated the walls and the tables of the retail shops by
their own products. the display boards and table tops were
designed in fancy backgrounds in fancy ways and in many
other designs which were eyes appealing. In retail shops the
customers started seeing these fancy table tops and display
boards and they started loving it. In this way the company
started advertising its products basically for free
5. Target Schemes-
6. Target Discount SchemesTarget discount scheme was a great idea by the company as
the sale of the company would grow if the dealers would try to
reach the target. In a way it was also good for the dealers who
could complete these schemes as they could get a monetary
discount scheme and they could manipulate prices of the items
and attract customers to them. Basically a target discount
scheme works in such a way where if the dealer would
complete a target sale of rupees 200000 he would get an
additional discount of 10% on the bill and if 40000 he would get
an additional discount of 10+5%. the scheme was a hot cake
item for the dealers as everyone wanted discounts and be in
the competition in the market.
7. TV Show
Every one today watches interactive tv shows. we watch KBC,
Kya aap panchvi class se tezz hain etc the same way anchor
some years ago launched a TV show called ROMA 1 minute
challenge. The show was about completing tasks in one minute.
The show was a great hit and after the show everyone knew
8. Coupon system.
The main customer for an electrical manufacturing company is
an Electrician. He is the one who installs switches in each and
every house hold. Anchor made an electrician happy by putting
in coupon in the boxes so whenever an electrician would buy
one box of switch he would get a coupon of some value.the
electrician would collect such coupons and could redeem it for
a set of nice tools or for some money or a lot of coupons for
something huge may be a television or a fridge or a cycle or
even a scooter. The coupon system attracted the electrician
towards the brand because it had benefits for them.
9.Promotional Items
Promotional items was an attraction for the dealers as to
promote the product the company would make bill books
writing pads pens pencils etc for the dealers. They are said to
be promotional items as they promote the comapnies name in
small ways. These small things made the electricians happy as
they felt as a part of the company and so did the dealers. For a
dealer it was a way of giving a small gift.
10. Hoardings and TV adds.
Every big company uses this marketing technique to spread
awarness about the product to the common man. It is a great
technique as every person travelling moving around etc can
see the hoarding about the product.
Competitors.
Anchor faces from various international companies such as
Havells, Great White, G.M, Legrand because these comapnies
have to it self the world market from the beggining. Also these
comapnies are financially sound and very well acquainted to
big buyilders and architects
Legrand swichesLegrand is a global specialist in electrical and digital building
infrastructure. Its multi-polarity, ability to leverage its global
knowledge to customize its offerings locally and providing endto-end solutions across categories and sectors, makes it a
preferred partner across segments.
Today, globalization is changing lifestyles and customers are
asking for more smarter and sleeker solutions. Strengthening
the brand philosophy of "Listen, Design, Make, Support" and
responding to these requirements of the market, Legrand has
introduced several smart innovative solutions to address their
needs.In India, Legrand has been a leader in the protection
business for the last four decades with a wide range of circuit
breakers and distribution boards.
Taking advantage of this strong position and the expertise of
the group, Legrand India has progressively developed
additional product ranges like wiring devices, home
automation, door entry, lighting management system, cable
management and structured cabling to its product offer.
With 25 offices spread across the country, and an extensive
network of over 600 distribution partners and more than 7400
retailers, Legrand proposes a complete solution for every
project be it residential, commercial, hospitality or industrial.
With an employee base of over 1000 in India, the company is
fast emerging as a leader in its core business by extending
products and services that suit every segment in the local
market Legrand products and services comply with the three
criteria of simplicity of use, simplicity of installation and
simplicity of distribution. The distribution network of over 600
stockists and 6000 retailers enables Legrand (India) to quickly
penetrate new market and product segments
Havells.
Havells India Ltd is a billion-dollar-plus organization, and is one
of the largest & India's fastest growing electrical and power
distribution equipment manufacturer with products ranging
from Industrial & Domestic Circuit Protection Switchgear,
Cables & Wires, Motors, Fans, Power Capacitors, CFL Lamps,
Luminaires for Domestic, Commercial & Industrial applications,
Great White.
GreatWhite Electricals, is a vision of a group that once
pioneered the first Piano switches in 1963. The group is in the
business since last 5 decades and is all set to repeat the history
by launching a new initiative GreatWhite. Under the guidance
of the industry pioneer, Jadavji Lalji Anchorwala and under the
able management of his two sons Mr. Mehul Shah and Mr.
Hemang Shah, the company has launched products under four
broad categories: Electrical Wiring Devices(EWD), Wires and
Cables, Circuit protection system (MCB/RCCBs) and Lighting &
Luminaries. The company has state of the art facilities in
Haridwar and Valsad and has already launched brands like
Petra, Tivoli, Fiana and Myrah under its portfolio.
With about 50 years of leadership in the electrical industry, the
group has also further diversified into Realty, Writing
Instruments and Paints under the brand name Anchor Realty,
Italia Pens and Anchor Paints respectively.
The Mission
.
The Vision
To redefine the way people use electrical products by providing
thm with an unprecedented level of security and safety through
process of extensive R & D and continuous innovation.