Yes, with the four-wheeler penetration being a pi
tiable 0.7% in India, many have voiced their confidence over the fact that such an offering would sell like hotcakes just as Vikram Gaur of Car India opined, “India being price-sensitive, the ultra small car segment will work, provided these cars are value for money.” Sure enough, India is a price sensitive market, but do the small cars fulfil any other promise apart from just being ‘affordable’?! Also look at the plummeting Maruti-800 sales, whose basic variant priced at $4878 is the cheapest in the country. Of late, the pedigree has slipped, giving way to other hatchback competitors priced higher. According to SIAM, sales in the A-segment have been on a constant downturn during the recent past, falling annually by 6% to 11,780 units in 2006-07, only proving why entry into a ‘lower than A segment’ looks a clear recipe for failure!
For Complete IIPM Article, Click on IIPM Article
tiable 0.7% in India, many have voiced their confidence over the fact that such an offering would sell like hotcakes just as Vikram Gaur of Car India opined, “India being price-sensitive, the ultra small car segment will work, provided these cars are value for money.” Sure enough, India is a price sensitive market, but do the small cars fulfil any other promise apart from just being ‘affordable’?! Also look at the plummeting Maruti-800 sales, whose basic variant priced at $4878 is the cheapest in the country. Of late, the pedigree has slipped, giving way to other hatchback competitors priced higher. According to SIAM, sales in the A-segment have been on a constant downturn during the recent past, falling annually by 6% to 11,780 units in 2006-07, only proving why entry into a ‘lower than A segment’ looks a clear recipe for failure!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Boston based private equity firm, finally got consent to acquire The Guitar Center, the biggest retailer of musical instruments in the U.S. The deal has been sealed at $1.9 billion and assumes the debt of $200 million which will drive the transaction to $2.1 billion. Bain Capital has also promised a premium of 26% at $63 per share to the shareholders of the retail firm. Guitar Center believes that Bain Capital has a successful track record and investment experience and the deal would be of interest both, to the company and the stockholders. Guitar Center has hired Goldman Sachs & Co. to proceed with the auction. The deal is expected to close by fourth quarter.
