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That's what auto companies are going to be telling visitors at AutoExpo 2002.
When the second world war happened, Toyota Motor got its first big fillip. George Bush's war, however, has India's auto companies losing sleep. And bearing the brunt of it could be Auto Expo 2002-the industry showfest slated for January. Maurti Udyog, the country's largest car manufacturer, has decided not to participate in the fair. ''We are more bothered about our sales at the moment,'' a spokesman for the company said. Maruti isn't the only one trying to save a rupee there. ''We have decided not to take part because we gain nothing from Auto Expo,'' says General Motor India's Vice President (Corporate Affairs), P. Balendran. Even Bajaj Auto, whose Chairman Rahul Bajaj is a moving force at one of Expo's sponsors, the CII, has so far chosen not to participate. What could be scaring potential participants away this time is the reported hike in exhibit rates. That was an issue at the 2000 Auto Expo too, but then sales were clipping and an extra lakh or two didn't pinch anybody. Today, a couple of lakhs is probably what the marketing team is allowed to spend on monthly domestic travel. Rajat Nandi, Executive Director of the Society of Indian Automobile Manufacturers, however, says that many participants have booked more space this time than they did in 2000. But guess, the hot rods would be parked somewhere else this time round. -Swati Prasad ENTERTAINMENT
Johnson & johnson thinks the channel is 'innovative' and VGP-a Chennai-based group that, among other things, runs amusement parks-wants programmes to be custom-made. So, just what channel is this that has these two advertisers so interested? Formally launched on October 19, 2001, it is Splash Channel-a free to air channel that targets children between three and 14, and is the only native channel in English. ''Cartoons are childish and MTV is too much for most children to digest,'' explains P.S. Sundaram, CEO of Intelivision, which owns Splash. Splash focuses on edutainment, information, and fun, with the first two accounting for half of its content. Currently, Splash-which is available only in south but claims to reach 2.5 million households-outsources three-fourths of its software. But soon enough, in-house content in multiple language feeds is to be increased. Money may prove to be a hurdle in going national. Originally intended to be a subsidiary of the troubled Pentamedia Graphics, Intelivision has an equity of Rs 1.30 crore. There are plans to raise fresh equity via private placements, but the general investment sentiment looks shaky. Sundaram is expecting a first-year revenue of Rs 2.5 crore, and a break even by the second. No kidding! -Nitya Varadarajan Executive Tracking Ever heard of vaishnavi corporate Communications, or a lady called Nira Radia? No? Well, neither have we. Which is why it is intriguing that the Tata group should in one fell swoop axe all its public relations companies, including Genesis, Corporate Voice and Integral pr among others, to hire Radia's outfit as a one-point pr for the entire group. So just who is Radia? For one, she has had very little to do with public affairs. She is the promoter of Crown Mart, which has been trying unsuccessfully to get a commercial airline licence from the government. At present, Crown only leases aircraft. From what we gather, she is getting the top 10-12 Tata accounts, including Tata Steel, Tata Engineering, Indian Hotels, Tata Tea, and Tata Power. Reliance, meanwhile, is causing a lot of anxiety in the public sector these days. Its search for a new retail head for Reliance Petroleum has many a senior PSU official licking his chops. And, by the way, Yogi Deveshwar and Ajay Piramal have joined the Alliance Capital Management board as non-executive members. MUTUAL FUNDS
Till a month ago, the unit Trust of India's (UTI) new chairman, M. Damodaran, was pooh-poohing the need to privatise the troubled asset management company. But ever since its board of trustees met in October 30, 2001 to discuss the Malegam Committee recommendations on its 'corporate positioning', the chairman has said that the board is in no hurry to privatise UTI, but will be seeking views from all the stakeholders. The committee has recommended, among other things, annulment of the UTI Act so that the government is totally distanced from the powerful institution. It has also suggested that a sponsorship company be formed 60 per cent of whose equity will be held by a strategic partner, not necessarily Indian. That effectively means privatisation of the UTI.
The question, however, is who would want to buy the UTI, which has a historical baggage in the form of us 64 scheme with a unit capital of Rs 12,778 crore? The government is said to be keen on roping in a multilateral institution like Asian Development Bank or International Finance Corporation as a strategic partner. That would be face saving for the finance minister who has time and again insisted that the UTI would not be privatised. But would ADB or IFC be interested in getting their hands dirty? Besides, do they have the skills to manage assets of this size? What about domestic funds, including those sponsored by public sector banks, or financial institutions or insurance companies? The answer would be negative. For, the domestic financial institutions, including the IDBI, which is the main promoter of the UTI, is already reeling under huge NPAs. Would it be able to cough up Rs 330 crore for a 60 per cent stake in the sponsor company and another Rs 240 crore for acquiring upto 40 per cent stake in the asset management company? Not really. The third, and the best, option is to allow a foreign AMC like, say, Fidelity to buy the UTI. A fund trying to get a foot-hold in the Indian market may actually pay a better price. Besides, says a fund manager, ''Such an AMC would bring in the necessary expertise and be beneficial to the future of UTI.'' Is that so hard to grasp? -Roshni Jayakar
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