Page 86 - IACC Newsletter March-April 2014 Issue 03

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At the annual performance presentation last week, Mondelez's chief financial officer, David Brearton, said, "While
economic conditions are likely to remain difficult, especially in emerging markets, we intend to leverage market share
gains to offset potential volatility."
Despite the cloudy outlook, Mondelez's Rs 4,000-crore plus Indian unit last year announced plans to invest $190 million to
build the country's largest chocolate manufacturing plant near Hyderabad. "Given our advantaged portfolio and footprint,
strong fundamentals and ongoing investments, we're confident that we're wellpositioned to take on the opportunity, as
this market turns around," said the spokeswoman for Cadbury India, which is in the process of transitioning its legal name
to Mondelez India Foods.
In the Rs 6,000-crore domestic chocolate segment, Cadbury has over 67% marketshare, followed by Nestle at 21% and
Ferrero at 6%. Increasing market share, however, may not be easy for Cadbury, which has been pushing its pricier brand
'Silk' and lowestpriced 'Cadbury Shots'. Rival Nestle, which grew 7% in 2013, too is focusing on its new brand, Alpino, and
Munch. In the health beverage section, Cadbury's Bournvita faces competition from Heinz India's Complan.
Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved.
Gartner: Government IT spend in India to reach $6.4 billion in 2014
Governments in India will spend $6.4 billion on IT products and services in 2014, an increase of 4.3 per cent over 2013,
according to a study by Gartner.
This forecast includes spending by Government (Government is composed of State and regional governments and Central
government agencies.) on internal IT (including personnel), hardware, software, external IT services and
telecommunications. “IT services, which include consulting, implementation, IT outsourcing and business process
outsourcing, will be the largest overall spending category throughout the forecast period within the Government sector,”
said Anurag Gupta, research director at Gartner.
“IT services are expected to grow 3.8 per cent in 2013 to reach $1.46 billion in 2014, up from $1.37 billion in 2013 — with
the business process outsourcing segment growing 16.3 per cent in 2014,” Gupta added.
Internal services (referring to salaries and benefits paid to the information services staff) will achieve a growth rate of 9.4
per cent in 2014. The information services staff includes all company employees that plan, develop, implement and
maintain information systems. Software will achieve the highest growth rate within spending categories with 10.3 per cent
in 2014 to reach $758 million in 2014, up from $687 million in 2013, led by growth in vertical specific software (software
applications that are unique to a vertical industry).
Information and communication technology service providers will benefit by eGovernment projects and citizen
participation aided by expansion of affordable broadband connectivity and mobile solutions, it said.
Copyright © 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.
Headquartered in Wisconsin, Harley-Davidson dominates the big bike segment
The US based company has not only carved a niche in India but has also managed to outsell competition
Harley-Davidson has done what no other big manufacturer has managed to achieve in India, that too in such a short span
of time. Apart from building a strong fan base for the American brand, what is really commendable is the fact that the
company has successfully translated this into sales. It’s not just fan boys sporting Harley tees and bandanas, but most are
also indulging in Harley-Davidson motorcycles.