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Ipr Indian Saga Of Wealth Creation


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Wealth Creation through Creation of Intellectual Property Rights, By Vijay Pal Dalmia Advocate, IPR Lawyer Delhi High Court, Partner and Head IP & IT Laws Division, Vaish Associates Advocates

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Ipr Indian Saga Of Wealth Creation

  1. 1. Intellectual Property Indian Saga of Wealth Creation By Intellectual Property & Information Technology Laws Division India
  2. 2. Case Study of Trade Marks/Brands <ul><li>Nirma </li></ul><ul><li>Amul </li></ul><ul><li>Big Bazar </li></ul><ul><li>Pan Parag </li></ul><ul><li>Videocon </li></ul><ul><li>Thumbs Up </li></ul><ul><li>Café Coffee Day </li></ul><ul><li>Hotmail </li></ul><ul><li>Ranbaxy </li></ul><ul><li>Airtel </li></ul>
  3. 3. . Wealth Creation by Intellectual Property Saga of “Rags to Riches” <ul><li>Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mighty multinationals and rewrote the marketing rules to win the heart of princess, i.e. the consumer. </li></ul><ul><li>The brand name became almost synonymous with low-priced detergents and toilet soaps. </li></ul><ul><li>Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition. </li></ul><ul><li>Starting as a one-man operation in 1969 Karsanbhai Patel, a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent Powder, and started selling it locally. </li></ul><ul><li>He started packing the formulation in a 10x10ft room in his house. Patel named the powder as Nirma, after his daughter Nirupama. Patel was able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. </li></ul><ul><li>By 1985, Nirma washing powder had become one of the most popular, household detergents in many parts of the country. </li></ul><ul><li>Presently it has about 14, 000 employee-base and annual turnover is above Rs. 25,00 crores </li></ul>
  4. 4. Wealth Creation by Intellectual Property <ul><li>If a brand’s value is to be judged by the ease with which it can be recalled, then Amul’s marketing campaign wins hands down. With its uncanny knack of using its utterly butterly campaign with current social, political and sporting events -it has the distinction of entering the Guinness World Records as the longest running campaign—has won the brand several accolades. </li></ul><ul><li>The success story of the Gujarat Co-operative Milk Marketing Federation (GCMMF) proves the point as to how a brand can achieve enormous success. </li></ul><ul><li>“ AMUL” ( Anand Milk Union Limited) brand adopted in the year 1946 managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat. </li></ul><ul><li>Today the said organization handles approximately total milk capacity of 11.22 million litres per day. </li></ul><ul><li>The Total Milk collection in 2008-2009 of the organization was 3.05 billion litres. The success of the brand can seen from the galloping increase in the sale figure of the different products sold under the brand AMUL i.e. from Rs. 1114 crore approx 355 million US$ in 1994-95 to Rs. 6711.3 crore approx 1504 million US$ in 2008-09. </li></ul>Utterly butterly delicious brand “AMUL”
  5. 5. <ul><li>GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 3,000 wholesale dealers and more than 5,00,000 retailers. </li></ul><ul><li>Brand “AMUL” today is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. </li></ul><ul><li>AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. </li></ul><ul><li>The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and [SAARC] neighbors, Singapore, Philippines, Thailand, Japan and China. </li></ul>Wealth Creation by Intellectual Property
  6. 6. <ul><li>Pantaloon Retail (India) Limited is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai. </li></ul><ul><li>The Company under the supervision of the company operates 120 Big Bazaar stores, 170 Food Bazaar  over 6 million square feet of retail space in 71 cities and towns and 65 rural locations across India, and employs over 30,000 people. </li></ul><ul><li>Brand Big Bazaar’s hypermarket format has changed the customer’s perception to that extent that they have already started to realize that “Big Bazaar” can provide real value for their money. </li></ul><ul><li>The first store opened in Kolkata in 2001 at VIP Road and was followed by stores in Hyderabad and Bangalore in short span of 22 days. </li></ul><ul><li>In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. These stores contributed over Rs. 43 crores to the company’s business in the first year itself. </li></ul>Wealth Creation by Intellectual Property Brand modernizing the Concept of Village Market
  7. 7. Wealth Creation by Intellectual Property Innovative Brand-Targeting the unexplored area of business <ul><li>BUSINESS needs ideas, not merely money. Ventures run on just money, but starved of ideas, would eventually fall prey to competition and perish. And, if ideas are available in abundance, business can overcome other handicaps, including its relative weaker money power, compared to that of its rivals. The brand Pan Parag is one of such brand which fits to the aforesaid description. </li></ul><ul><li>Pan Parag” needs no introduction since Pan Masala itself is recognized by the name of “Pan Parag” which is a flagship brand of Group. </li></ul><ul><li>The product “Pan Parag” was launched in the year 1973 by Shri M.M. Kothari, the founder of this Mega brand. The revolutionary product got unprecedented acceptance from the consumers and by mid 1980s.Pan Parag assumed the position of market leader. </li></ul><ul><li>The Net sale of Kothari Products Ltd selling brand “Pan Parag” in 2008 was approximately Rs. 201 crore. </li></ul><ul><li>The Net Profit of Kothari Products Ltd. In 2008 was approximately Rs. 175 crores </li></ul>
  8. 8. Wealth Creation by Intellectual Property <ul><li>The Videocon group emerges as a USD 2.5 billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979. </li></ul><ul><li>The group launched its first colour television under the brand name “VIDEOCON” in 1985 and thereafter it has never looked back with introduction of series of consumer durable goods like washing machines, home theatre systems, air conditioners, refrigerators, air-coolers, kitchen appliances and finally mobile phones in 2009 the group has virtually captured the Indian consumer market particularly targeting the consumer of middle and lower -middle income group. </li></ul><ul><li>The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the world. </li></ul>Indian Multinational
  9. 9. Wealth Creation by Intellectual Property <ul><li>Launched in India by Parle Agro Pvt. 1977 to fill the void left by the government ban on American soft drinks giant Coca-Cola in the 1970s. </li></ul><ul><li>The thums-up logo was adopted early on, but the brand was positioned differently then. The brand Thums Up was earlier positioned as a refreshing cola, with slogans such as Thums Up Makes it Great and Happy Days are here Again . </li></ul><ul><li>It was post-1996 that the brand moved towards a more individualistic, masculine positioning. </li></ul><ul><li>The brand “Thums Up” was sold by Parle Agro Pvt. Ltd. on the September 18, 1993 to The Coca Coal Company proving as to how a brand if nurtured and taken care of can yield into a considerable asset. </li></ul>Brand Name- An Intangible asset
  10. 10. Wealth Creation by Intellectual Property <ul><li>Till about the late 1990’s coffee drinking in India was restricted to only the intellectuals, the South Indian traditionalist and the five star coffee shop visitor. </li></ul><ul><li>As the pure (as opposed to instant coffee) coffee café culture in neighbouring international markets grew, the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen. </li></ul><ul><li>With the roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees and with the vision of a true entrepreneur nurturing it, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), A Rs. 750 crore ISO 9002 certified company popularly known as Coffee Day encashed the unexplored area of business and introduced value chain of coffee consumption in India. </li></ul><ul><li>The brand Café Coffee Day (CCD) introduced by the Amalgamated Bean Coffee Trading Company Ltd. pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. </li></ul><ul><li>From a handful of cafés in six cites in the first 5 years, CCD has become India’s largest and premier retail chain of cafes with 858 cafes in 134 cities around the country. It is one of India’s leading coffee exporters with clients across USA, Europe & Japan. “Enthused by the success of offering a world-class coffee experience, CCD has opened a Café in Vienna, Austria. </li></ul>A lot can be earned by a CAFE
  11. 11. Wealth Creation by Intellectual Property <ul><li>Sabeer Bhatia, a 27-year-old Indian from Bangalore who went to America as a student to study at Cal-Tech and Stanford had innovative and creative ideas to achieve his goal. </li></ul><ul><li>He and his partner Jack Smith approached the venture capital firm Draper Fisher Jurvetson with their idea for a free email service for everyone all over the world in 1995, the firm praised the idea but wondered how they would attract members and build a company around it. </li></ul><ul><li>However he and his partner Jack Smith refused to bow against the obstacles lying between them and success. </li></ul><ul><li>On July 4, 1996 the conceptual brand &quot; HoTMaiL &quot; was launched with the collaboration of venture capital firm Draper Fisher Jurveston and within 2 ½ years Hotmail became the world's largest email service, with more than 30 million active members. </li></ul><ul><li>The conceptual brand was subsequently acquired by the giant Microsoft in 1997 for an estimated $400 million, and shortly after it was rebranded as &quot;MSN Hotmail&quot;. The current version, &quot;Windows Live Hotmail&quot;, was officially announced in 2005 and released worldwide in 2007. </li></ul>Success Story of Young Billionaire!
  12. 12. Wealth Creation by Intellectual Property <ul><li>The Indian pharmaceutical industry has long struggled with an international image that has collectively labelled its members as trespassers of Intellectual Property Rights. Even as the industry attempted to rid itself of this label, there were few who actually ventured out to test their mettle with the best in the world. Ranbaxy Laboratories was one such company. </li></ul><ul><li>In 1961 Ranjit Singh and Gurbux Singh incorporated Ranbaxy to market pharmaceuticals in Amritsar, India, and borrow funding from moneylender Bhai Mohan Singh. </li></ul><ul><li>In 1969 Ranbaxy launched CALMPOSE, a Valium generic which became the company's first success and in 1973 it went public. </li></ul><ul><li>The Company in 1997 crossed a sales turnover of Rs. 10,000 crore, with its exports reaching an all time high of Rs. 5,000 crore. </li></ul>Revolutionary Brand
  13. 13. Wealth Creation by Intellectual Property <ul><li>1998 Ranbaxy entered the USA, world’s largest pharmaceuticals market, with products under its own name. </li></ul><ul><li>2001 Ranbaxy USA crossed sales of US $ 100 million. </li></ul><ul><li>Presently Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one of the world's top 100 pharmaceutical companies. Long a specialist in the preparation of generic drugs, Ranbaxy is also one of the world's top 10 in that pharmaceutical category as well. </li></ul><ul><li>Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 46 countries, world-class manufacturing facilities in 7 countries and serves customers in over 125 countries. </li></ul>An Indian Brand Capturing the World Market
  14. 14. Wealth Creation by Intellectual Property <ul><li>From a meager sum of Rs 2.5 lakh invested 56 years ago, Ranbaxy got Rs 9,576 crore, from the Japanese pharma giant Daiichi Sankyo. </li></ul>Bought: Rs 2.5 lakh; Sold: Rs 9,576 cr…!!!...
  15. 15. Wealth Creation by Intellectual Property <ul><li>Bharti Airtel is the largest cellular service provider in India, with more than 110 million subscribers as of 2009. </li></ul><ul><li>Bharti Airtel is now the world's third-largest, single-country mobile operator and sixth-largest integrated telecom operator. </li></ul><ul><li>Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar. </li></ul><ul><li>Total Revenue of Bharti Airtel in 2009 - US$ 7.254 billion </li></ul><ul><li>Total Operating income of Bharti Airtel in 2009 US$ 2.043 billion </li></ul><ul><li>Net income of Bharti Airtel in 2009- US$ 1.662 billion </li></ul><ul><li>Total assets of Bharti Airtel in 2009- US$ 11.853 billion </li></ul>Brand-Capturing the Indian Telecom Industry
  16. 16. India top 10 most valuable brands source: Brand Brand Value in US$ (in Millions) Brand Value in INR (in Crores) 7844 37649 5480 26302 4807 23075 4177 20050 3100 14878
  17. 17. India top 10 most valuable brands source: Brand Brand Value in US $ (in Million) Brand Value in INR (in Crores) 2620 12574 2512 12060 2370 11377 2348 11271 2277 10928
  18. 18. Success Saga of Other Indian Brands Continues… source: BRAND BRAND VALUE 2009     IN US $ ( Millions) IN INR CRORES (1 $ = RS @ 48) HPCL 2274 10914 TATA STEEL 2264 10867 LARSEN & TOUBRO 1823 8751 INFOSYS 1719 8250 UNITED BREWERIES 1718 8248 RELIANCE COMM. 1436 6892 MARUTI SUZUKI INDIA 1411 6772 M& M 1335 6407 BAJAJ 1010 4850 HERO HONDA MOTORS 859 4125 HDFC BANK 784 3762 SUZLON ENERGY 745 3574
  19. 19. Success Saga of Other Indian Brands Continues… source: BRAND BRAND VALUE 2009     IN US $ ( Millions) IN INR CRORES (1 $ = RS @ 48) TATA TEA 709 3404 HCL TECHNOLOGIES 703 3376 DABUR INDIA 634 3045 HDFC 623 2990 PNB 564 2709 RANBAXY LAB 552 2650 TATA COMMUNICATIONS 539 2590 GRASIM INDUSTRIES 531 2549 IDEA CELLULAR 513 2462 INDIAN HOTELS 480 2304 TATA POWER 475 2280 BANK OF BARODA 466 2239
  20. 20. Success Saga of Other Indian Brands Continues… source: BRAND BRAND VALUE 2009  JSW STEEL 447 2146 BANK OF INDIA 442 2121 VIDEOCON INDUSTRIES 416 1998 AXIS BANK 404 1938 KOTAK MAHINDRA BANK 359 1725 PANTALOON RETAIL 353 1692 JET AIRWAYS 331 1588 DLF 330 1582 JAIPRAKASH ASSOCIATES 326 1563 DR. REDDY'S LAB 320 1535 ESSAR OIL 318 1528 GMR INFRASTRUCTURE 288 1381 RELIANCE INFRA 264 1265 TATA CHEMICALS 262 1258 ASHOK LEYLAND 259 1245 BHARAT FORGE 251 1206
  21. 21. Lessons Learnt <ul><li>IP </li></ul><ul><li>( Intellectual Property ) </li></ul><ul><li>is serious business. </li></ul><ul><li>Devote Time in </li></ul><ul><ul><li>Selection </li></ul></ul><ul><ul><li>& </li></ul></ul><ul><ul><li>Adoption </li></ul></ul><ul><li>of your BRAND </li></ul><ul><li>Nurture it. </li></ul><ul><li>Maintain it. </li></ul><ul><li>Protect it. Reap the Rewards. </li></ul>
  22. 22. Flat No 903, Indra Prakash, 21, Barakhamba  Road, New Delhi 110001 (India) Phone: +91 11 42492532 (Direct) Phone: +91 11 42492525 Ext 532 Mobile :- 9810081079 Fax: +91 11 23320484 email:- [email_address] Intellectual Property & Information Technology Laws Division