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basant
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   Posted: 07/Aug/2007 at 2:17pm |
Originally posted by smartcat
No idea about the management quality, but I think it is a father-son duo running the show.
Before investing, what one needs to consider the Mallya factor. The big man is making acquisitions in France. It remains to the seen if Indage can remain No. 1. But I guess when the industry is growing at a scorching pace, it would be okay even if Champagne Indage's marketshare goes down.
Other risks include cheap imports (if tariff barriers are removed) and crop failure.
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Right. Though I would personally not buy it because I have no idea on the industry/product it does seem attractive but what I wanted to know was how powerful are these brands. if the brands are strong Mallya would not be able to make a dent. Something likje the coca cola example.
If I like Bagpiper I would not drink anything else but bagpiper. Similar with the ones who smoke (Wills) in Coke Pepsi does have a similar taste!
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smartcat
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Posted: 07/Aug/2007 at 3:16pm |
I don't think Indage's brands are very strong. It is difficult to create strong brands in an environment that doesn't allow advertising. The only thing you can do is use an Indage's brand name and advertise it as 'golf accessories' or 'cassette & CDs'. The popularity of brands has to be via word of mouth or through 'Ivy Wine Bars'.
There was a report in Motilal Oswal on United Spirits 8 months back. This report has lots of data about the wine industry. I have been following Champagne Indage for a long time. I think I will get into this stock only after the company 'becomes bigger'.
| Champagne Indage & other wine making companies have vineyards & they promote Wine Tourism |
Grover Vineyards (Bangalore) offers wine tours for Rs. 2,000 per head (Minimum 10 people in a group). You get to see the entire wine manufacturing process (from picking of grapes to processing to packaging). Then you get to taste different sorts of wines and then buy bottles of wine at bulk rates.
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kulman
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Posted: 07/Aug/2007 at 4:26pm |
I think I will get into this stock only after the company 'becomes bigger'.
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Smartcat, could you please elaborate the reasoning behind this as it's not very clear to me.
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Life can only be understood backwards—but it must be lived forwards
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smartcat
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Posted: 07/Aug/2007 at 4:39pm |
I'm mostly a 'large cap' guy - 85% of my portfolio constitutes large caps stocks. I'm a bit vary of investing in really small companies.
And Devesh has pointed out that market size for wine sales is just Rs. 450 crores. I'm mostly interested in companies that generate annual profits of Rs. 450 crores!
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kulman
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Posted: 07/Aug/2007 at 4:53pm |
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Life can only be understood backwards—but it must be lived forwards
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basant
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Posted: 07/Aug/2007 at 5:00pm |
Smartcat: That is really a very safe thing to do. largecaps never fall by more then 30% and small and midcaps lose 30% on a weekly basis.
Sometimes I also think about changing my strategy but it never seems to happen.
Edited by basant - 07/Aug/2007 at 9:20pm
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omshivaya
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Posted: 07/Aug/2007 at 9:13pm |
Originally posted by basant
SOmetimes I also think about changing my strategy...
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Stop scaring TEDdies sir jee.
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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India_Bull
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Posted: 07/Aug/2007 at 9:30pm |
Market for wine in India is very small and it is good news that it is growing and I am sure Dr.Mallya is clever to understand that also. He has formed a joint venture with mr. Sharad Pawars brothers winery in Baramati.
I have not tested Indian wine yet but I am sure once the people test firangi wine, they will switch from the local ones.
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India_Bull forever Bull !
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