Stock Watch

As told by a top official of the Company, the FMCG Company, Bajaj Corp. Limited, which is renowned for its hair care products, is considering foraying into four non-haircare sectors.

Among the Shishir Bajaj Group of Companies, Bajaj Corp. is the second largest Company.

Kushagra Nayan Bajaj, Bajaj Corp.'s Non-Executive Chairman said, "We have plans to enter four non-haircare segments and are mulling possibilities, both organic and inorganic. However, the inorganic growth will depend on category, margin and various other factors".

The Consumer goods major Hindustan Unilever has recently said that the company has decided to revise the remuneration package of its non-executive independent directors.

Notably, the move comes as it will be needed for the enhanced role and involvement in the corporate governance of the company.

After cases like Satyam in the Indian market, the role of independent directors has been questioned several times and the company has also said that it will seek shareholders' approval under Section 309(4) of the Companies Act, 1956.

Tea exported from India increased over 14.28 % in May. The 9.8 million kg produced over the same period last year increased to 11.20 million kg this year, a release by the Tea Board of India claimed. The production for the month alone increased by 1.7 % to 72.63 million kg. Tea Board Chairman, Mr. Basudeb Banerjee has said,

“The increase in tea exports is due to increased demand in the Middle East. The price of Orthodox variety in Sri Lanka has also risen quite rapidly helping us to remain competitive in the export markets.”

A top official from Godrej Consumer Products Ltd has revealed that the Company speculates high food inflation to suppress first quarter earnings growth; however, a highly expected better monsoon could assist in improving the profits later in the fiscal.

"I think it will be muted for two reasons. One is, there are no price increases except in the FMCG food business. Secondly, because of high food inflation," Adi Godrej, Chairman told Reuters was quoted as saying in an interview on Friday.

Godrej has decided that it will change the name of its unit Godrej SaraLee to Godrej Household Products Ltd.

Godrej SaraLee was formed with the joint venture of Sarah Lee and Godrej. It happened when Godrej took over 51 per cent stake in the company.

The JV has been in the business for the last 15 years and produces items like insecticides, mosquito repellents like Good Knight, Hit and also air fresheners like AmbiPur and shoe polish, Kiwi.

Godrej is into the business of FMCG and Sarah Lee was into the business of providing households items.

Regulators in Europe are looking closely at Unilever's bid for Sara Lee Corp's body care business. This was announced after Unilever declined to offer any type of concession to address competition concerns.

European Commission which is the EU competition watchdog revealed on Tuesday that it will decide by Oct. 5 if it plans to block or pass the $1.3 billion deal. The agency had previously given May 31 as the deadline to decide the fate of the deal.

On Thursday, India’s FMCG firm Godrej Consumer Products Ltd said it will buy out US based Sara Lee’s 51 stakes from their joint venture for 185 million euros. GCPL claimed it would become the second largest household insectide player in Asia, excluding Japan, post the acquisition of Sara Lee’s stake. Through the day, the company was among the top gainers of the day, after its share price went up by nearly 14 percent; the stock touched its 52 week high of Rs 346.70, before closing trade at Rs 298, up 13.78 percent.

Proctor and Gamble (P&G) in Cincinnati saw its shares fall in a panic that was caused by the news of an error in numbers. The consumer products maker saw its shares drop 2.3% as a client company made an error in the invoice for $16 million and wrote $16 billion instead. The Dow Jones Industrial Average owns P&G.

P&G also had to ward of claims of rashes in their Pampers' Dry Max Diapers. The diapers are rumored to cause chemical damage. The product has sold more billion units. P&G’s Pampers denied these claims.

Recently, it was specified by Paul Polman, CEO, Unilever that he is mulling to double the business in India. It should be noted that earlier Polman described Hindustan Unilever as an underperformer.

However, he did not specify the timeline to double the business. Monday, while answering a press conference, Polman said that he is hopeful that the employees had well received his 'sense of urgency'. Apparently, the Unilever chief was not contended with the performance with Indian outfit.

Procter & Gamble (P&G) has increased the weight of its detergent, Tide Naturals, by as much as 25 per cent.

This has been done by the FMCG giant to answer back to its rival, HUL, which came up with the controversial ad campaign showing Rin, its detergent brand and Tide Naturals.

The weight increase would mean that 200 gms of Tide Natural, that was available for Rs. 10 will now give 250 gms for the same price.