CompanyWatch-Navneet owners transfer 3 brands to listed co for free
Navneet Publications (India) Ltd-Website
navneet.com
Stock Closed at on 9/3/99 on NSE: Rs 520.60
---------------------------> BSE: Rs 516.20
Book value:Rs 73.60
P/E: 28.41
Sanjay Kular (Econ. Times)
MUMBAI 2 SEPTEMBER
THE Mumbai-based Gala family, promoters of the Navneet group, has decided to transfer three of its most popular product brands ?Navneet, Vikas and Gala ? to the listed company, Navneet Publications (India) Ltd, without charging any compensation.
Navneet Publications is engaged in the publication of educational books and stationery items. These three popular brands accounted for more than 90 per cent of the company?s aggregate sales of Rs 115 crore in '97-98.
Confirming the development, Sunil Gala, executive director, Navneet Publications, told The Economic Times, "The brands have been transferred without any compensation and that reposes the management?s confidence in Navneet Publications".
In order to boost sales of branded products, the company has started focusing on establishing franchise stores. These outlets will display a variety of Navneet products, children?s books, stationery items, CD-ROM and educational games. The company has targeted to increase its franchise stores from 13 as of now to 100 by 2002.
The Gala family owns 62 per cent of the company?s equity of Rs 9.52 crore. Mutual funds and financial institutions account for 4.65 per cent, banks and corporates 3.82 per cent, foreign institutional investors 3.16 per cent while the public holds the rest.In the third quarter (April-June) of '98-99, Navneet Publications recorded a 41 per cent growth in profit to Rs 15.63 crore as against a profit of Rs 11.09 crore in the corresponding period of the previous year. During the same period, sales grew 24 per cent to Rs 86.62 crore. Its earnings per share (EPS) on an annualised basis works out to Rs 24.50.
The volume growth coupled with the company's strategy to start franchise stores has paid off. With Q3 results, the aggregate net profit for the nine-month period ended June '99 amounted to Rs 19.55 crore.
This represents a 45 per cent jump over the profit of Rs 13.48 crore in the corresponding period of the previous year. |
