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THOUGHT OF THEDAY
THOUGHT OF THE DAY
“The foundation of every state is the education of its youth...”
Law Updates:
Vide Circular ref RBI/2015-16/175 A.P. (DIR Series) Circular No.13
dated September 10, 2015, RBI has decided to allow resident importers
to raise trade credit in rupees, with riders. It can be raised after
entering into a loan agreement with a foreign lender. RBI further
clarifies that the all-in-cost of such rupee-denominated trade credit
should be commensurate with prevailing market conditions
The National Restaurant Association of India (NRAI) has written to the
Finance Ministry seeking clarification on levying of service tax on home
delivery, drive-away and take-away orders.
PROFESSIONALS INPUTS:
Vide Circular ref CIR/CFD/CMD/4/2015 dated September 09, 2015
issued by SEBI, SEBI provides details of material info. to be disclosed
by listed entities under listing norms.
Vide Notification issued by MCA dated 09.09.2015, MCA has issued
Companies (Filing of documents and forms in XBRL) Rules, 2015.
Form CRA-4 is available for filing w.e.f 11.09.2015.
Vide Notification RBI/2015-16/173 A.P. (DIR Series) Circular No.11
dated 10.09.2015, RBI has decided to discontinue Statement pertaining
to trade related loans and advances from EEFC account with immediate
effect.
Vide Notification No. F.7(433)Policy-II/VAT/2012/PF/703-712 dated
10-9-2015 issued by DVAT, Government clarifies that details of
Invoices and Goods Receipt (GR) Notes in respect of all goods
purchased or received as stock transfer or received on consignment
agreement basis from outside Delhi shall be submitted online, in Form
Delhi Sugam-2 (DS2).
Vide Circular No. 24 dated 10-09-2015 issued by DVAT, Government
clarifies that Reassessment in respect of system generated default
assessment notice dated 19/06/2015 is being made.
Vide RBI Circular ref 2015RBI/2015-16/174 A.P. (DIR Series) Circular
No.12 dated September 10, 2015, RBI has issued guidelines for Grant of
Authorisation for Additional Branches of FFMC/AD Cat. II.
MARKET WATCH:
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SILVER: 35499.00 116.00 GOLD (MCX): 26161.00 -2.00
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CS Rajiv Bajaj
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1Bajaj
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Date: 11th September, 2015
2.
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RADHE SHYAM AGARWAL,
Founder,Emami Group
“Once a CA left his job, sold his products on hand-pulled rickshaw and is now
among the 100 richest Indians!!!”
Although it seems to be a script of Bollywood movie, but this is the real life story of Mr.Radhe
Shyam Agarwal. He is a Chartered Accountant, Company Secretary, LLB and a Master Degree
holder in Commerce. From a very humble beginning and with very limited resources, Agarwal
has driven the Emami with exceptional and extra ordinary skills to make the company reach its
present stage. Considered as a present day Management Guru who is innovative, an
administrator par excellence and possessor of great consumer insight and far sight.
In 1970, he joined the renowned Aditya Birla Group as Vice President being a Chartered Accountant. But within four
years, he left his cushy job and decided to follow the torturous trail of entrepreneurship. The inception of Emami
Group took place in West Bengal, when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their high
profile jobs to set up Kemco Chemicals, an Ayurvedic medicine and cosmetic manufacturing unit in Kolkata, in 1974.
It was an extremely bold step in the early seventies when the Indian FMCG market was still dominated by
multinationals. Several such companies headquartered in Kolkata were considering shifting out of West Bengal due to
labor unrest and political problems. But against all odds with a vision of combining the age old wisdom of Ayurveda
with modern manufacturing techniques for creating winning brands the company started with a merger amount of Rs.
20,000. A dream of reaching out to the Indian middle class; a target audience whom they thought will have increasing
potential for consumption, the company started manufacturing cosmetic products as well as Ayurvedic medicines
under the brand name of Emami from a small office (still retained) in Kolkata’s business district of Bada Bazar. Their
consumer insight is reflected today in the mission statement of Emami Limited: "Making people healthy and beautiful
naturally".This is what set the ball rolling when the partners launched Emami Talcum, Emami Vanishing Cream and
Emami Cold Cream and glycerine soap, which were great favourite brands with the quality conscious consumers in
the mid-seventies.
In the early days the two friends used to go around places and sell their cosmetics from shop to shop. They piled their
goods on hand pulled rickshaws and went on distribution drives making their brand extremely popular, available and
acceptable among consumers. The intial days were tougher then they appeared. The capital base of Emami was small,
angle investing was a non existing concept, and the entire cosmetic market was dominated by multinationals.The
financial astuteness came handy in 1978, Himani Ltd (incorporated as a Private Limited Company in 1949) had
become sick unit and was up for sale. Himani, almost a 100 year old company with good brand equity in Eastern India
and a well laid out factory in Kolkata, was producing a number of cosmetics. Mr. Agarwal and Mr Goenka realized the
opportunity and acquired Himani though for their young organization it was a tough task to mobilize resources for
buying a sick unit and even tougher to turn it around to a profitable venture. The degree of financial risk involved was
enormous considering the small capital base of the company in those days. However they decided to go ahead with the
deal which later on proved to be the turning point for the organization.Himani was restored to profit and the debt
taken for the deal was paid off within two years. Production of various health care items and toiletries based on
Ayurvedic preparation had begun in the Himani factory. Ten years after commencement of the company, it launched
their first flagship brand Boroplus Antiseptic Cream under the Himani umbrella in 1984. Many additional brands
followed Boroplus including Boroplus Prickly Heat Powder which came as a brand extension of the mother brand.
Emami brands started selling in all states of North, East and West India. Nineties was very eventful for Emami. The
next flagship brand of the company Navratna Cool Oil came in the nineties under the Himani Umbrella and the
second factory was opened at Pondicherry to expand production. Navratna over the years has become market leader
in the cool oil category.The introduction of new brands continued and the distribution network of the company was
extended to South India with Navratna spear heading the process.
In 1995, Kemco Chemicals, the partnership firm was converted into a Public Limited Company under the name and
style of Emami Ltd. In 1998, Emami Ltd was merged with Himani Ltd and its name was changed to Emami Ltd as per
fresh certificate of incorporation dated September1, 1998.In 2000, with a view to concentrate on its core FMCG
business, Emami's investment undertaking was demerged and Pan Emami Cosme Ltd. issued its fully paid up shares
to shareholders of Emami in the ratio of 1:1. In 2003 a new factory unit was set up at Amingaon, Guwahati.Emami has
five international subsidiaries and its global reach extends to more than 63 countries including India, SAARC,GCC,
UK, Sri Lanka, Bangladesh, Nepal, African and the CIS countries.Within four decades, the company Emami Ltd has a
turnover of Rs. 1821, the flagship company of the Rs.8000 crore Emami Group.
Today, Emami Limited is led by Mr. R S Agarwal and Mr. R S Goenka with the help of the second generation
Promoter Directors from the two families. Emami Limited has a team of over 4500 people running one of the leading
and fastest growing personal and healthcare businesses in India. Emami is a Group of Indian multinational
companies, dealing in real estate, paper, edible oils, cement etc, and is widely known for the FMCG range. The
founders has unanimously decided that the group will not enter the tobacco, liquor, hotels or film businesses.
In 2015, the net worth of Mr. Agarwal was assessed as $1.43 billion and ranked in top 100 along with R S Goenka who
has equal contribution in building Emami.R S Agarwal is an author to several books, a prolific speaker and has
received several awards for his contribution .
