Saturday, June 25, 2016

The 15 greatest business rivalries of all time ...


 Courtesy : Rediff


Wadias and Ambani
There are several stories on how the war between the two started. Some say that it was a fight between old money and new money. Nusli Wadia had a business pedigree where as Dhirubhai, who started out as a petrol station attendant, had an amazing rags-to-riches story.His vaulting ambition, his appetite for risk and larger-than-life image made him a natural target for those who resented his meteoric rise to the top of the business ladder.During the Janata Party rule (1977- 1979), Nusli Wadia obtained the permission to build a 60000 tpa di-methyl terephtalate (DMT) plant.However, before his letter of intent could be converted into a license, the government changed and when the Congress government came to power, his license was delayed (until 1981) with one pretext or the other.This was the same time when Dhirubhai obtained license to build a PTA plant. Dhirubhai was also contemplating on building a Paraxylene facility.All this infuriated Wadia and it marked the beginning of the Ambani-Wadia battle where Ramnath Goenka, then Indian Express proprietor, joined forces with Wadia.

Shaw Wallace and UB Group
In the early 1980s, Vijay Mallya joined hands with Manu Chhabria to bid for Shaw Wallace. However, due to tight currency regulations at the time, Mallya didn’t come out in open about partnering Chhabria, a non-resident Indian.Chhabria took over Shaw Wallace, shrugged off Mallya's claim for the company and triggered one of India's most enduring corporate rivalries between Shaw Wallace and the UB Group.In 2005, UB Group signed a deal with Jumbo World Holdings Limited in Dubai to acquire Shaw Wallace for Rs 1,300 crore (Rs 13 billion).Around the time Mallya acquired Shaw Wallace, Manu Chhabria was already dead. Mallya dealt with his wife Vidya Chhabria.



Wadia and Rajan Pillai
As soon as the battle with Reliance had cooled off in the late 1980s, Nusli Wadia launched an all-out attack to acquire Britannia Industries. An American company named Nabisco Brands Inc owned Britannia then.Wadia’s friend Rajan Pillai was managing Britannia in all over Asia. He was called the 'Biscuit King'.Through Pillai, Wadia approached Nabisco’s management and expressed interest in acquiring Britannia but the offer was turned down.On the contrary, Nabisco made Pillai chairman of Britannia. Soon after, the two friends turned into bitter rivals.Pillai partnered French food company Danone to expand the business but the latter broke the partnership and joined hands with Wadia. Danone accused Pillai of fraud.After a long boardroom battle, Pillai ceded control to Wadia. and later Pillai died in prison.

Mukesh Ambani and Anil Ambani
Mukesh Ambani and Anil Ambani split their businesses between them after their father Dhirubhai Ambani died. There was lot of friction between the two since the split but it acquired new heights when the two brothers reached court over a dispute.Mukesh Ambani's Reliance Industries Limited agreed to sell Anil Ambani's Reliance Natural Resources Limited 80 mmscmd of gas from the Krishna-Godavari Basin for 17 years at $2.34 per mmbtu - for its Dadri power plant.With RIL stopped supplying the gas, RNRL went to court against RIL for not implementing this part of a family MoU signed when the empire was being carved up between the two brothers.The Supreme Court delivered a judgement which experts said was in favour of Mukesh Ambani.Few months after the court case, the two brother announced that they have scrapped all existing non-compete agreements, allowing either group to enter sectors that had earlier been reserved for one of them.In 2013, Ambani brothers joined hands for a telecom deal. Valued at Rs 1,200-crore, the deal lets Mukesh Ambani use his younger sibling's optic fibre network for launch of his telecom venture.
 
L&T and RIL
L&T’s tryst with the Ambanis started after Manu Chhabria, a takeover-tycoon, started making attempts to acquire L&T in 1987.No one person or institution was majority stakeholders in L&T, which made the company a sitting duck for acquisition.While Chhabria was acquiring shares of L&T, Dhirubhai Ambani too started buying the construction firm’s stocks. Then L&T Chairman NM Desai opted to join hands with Ambani, a fellow Gujarati, to prevent L&T falling in hands of Chhabria.The first battle was fought between Ambani and Chhabria. The latter lost due to Ambani’s political clout.Dhirubhai Ambani soon came on the board of L&T and became the chairman. L&T was a blue-chip and had easier access to cash. The engineering giant was just what the Ambanis needed to set up their cracker project without putting up the necessary funds.Soon after assuming control, Ambani forced L&T to grant supplier's credit of Rs 570 crore to reliance for its project.Ambani’s game, however, could not last long. They were forced to abort their plans after their arch-rival VP Singh came to power in Delhi in 1989. The management control was restored back to the institutions.

McDonalds and Burger King
Their rivalry is famous as Burger Wars. That’s because both the companies have been hitting out each other through their advertisements and marketing campaign.One famous advertisement is of Burger King attacking McDonald’s on the size of its hamburgers.In October, McDonalds announced it would stop serving Heinz ketchup in its stores. Why? Because Bernardo Hees, former chief executive of Burger King became chief executive of Heinz.
 
Tesco and Sainsbury’s
Tesco and Sainsbury’s are the two biggest retailers in the UK. Their battle is termed as Trolley Wars.
Sainsbury’s was started in 1869 and constantly grew to be the largest retailer in UK until 1995. Tesco, which was founded in 1919, overtook Sainsbury’s as the top UK retailer.
The two companies have been fighting it out in their advertisement and even while acquiring companies.

Apple and Microsoft
You can say that the original rivalry betwen Microsoft and Apple started with a court case.
Apple had agreed to license certain parts of its GUI to Microsoft for use in Windows 1.0, but when Microsoft made changes in Windows 2.0 adding overlapping windows and other features found in the Macintosh GUI, Apple filed suit, according to Wikipedia.Apple added additional claims to the suit when Microsoft released Windows 3.0.The court’s decision was largely in favour of Microsoft.Since then, the two companies have been talking negative about each other’s products. For example, Apple CEO Tim Cook to analyst during the company’s earning call: "I haven't personally played with the Surface yet… but what we're reading about it that it's a fairly compromised, confusing product." On the other hand, Microsoft Surface tablet’s advertisement shows things iPad cannot do and makes fun of Siri.
 
Adidas and Puma
Adidas was founded in 1948 in Germany by Adolf Dassler, after splitting from his elder brother Rudolf - who later established Puma.The brothers’ relationship went sour during the World War II. After the war was over they went their separate ways.Puma and Adidas entered a fierce and bitter rivalry after the split. The town of Herzogenaurach (where they lived) was divided on the issue, leading to the nickname "the town of bent necks". That’s because people looked down to see which shoes strangers wore before talking to them, according to Wikipedia.In 2009 employees of both the companies played a friendly soccer match symbolising end of the 60-year-old feud. However, both the Dassler brothers had passed away by this time.

Airbus and Boeing
In the large jet airliner business, it’s only two companies that rule the roost - Airbus and Boeing.
Though the companies have been competing for a long time, the battle got intense when global airspace industry got consolidated after both the companies went on merger and acquisition spree in the 1990s.
The two are engaged in neck and neck completion. From 2003 - 2012, Airbus has received 7,714 orders and delivered 4,503, and Boeing has received 7,312 orders and delivered 4,091, according to Wikipedia.Both the companies regularly accuses the other of receiving unfair state aid from their respective governments.In fact, in May 2005 the United States filed a case with World Trade Organisation against the European Union for providing allegedly illegal subsidies to Airbus. Twenty-four hours later the European Union filed a complaint against the United States protesting support for Boeing.


Sky and BT
Sky and BT have been battling each other in the broadband market for a long time. But the rivalry reached new heights after BT started bidding for Premier League football licenses.To take away Sky's loyal football fans, BT launched a huge marketing campaign using a range of celeb presenters. BT's move into Premier League football has sent license fees rocketing, which has dented Sky's profits.

Procter & Gamble and Unilever
FMCG companies Unilever and Procter & Gamble (P&G) dominate the global consumer goods market. The rivalry between the two got intense after the Anglo-Dutch company Unilever entered the US market.The competition between the two is so intense that P&G had hired espionage agents to spy on Unilever and get information on the hair care business. The agents were caught and P&G paid Unilever $10 million.At one point, P&G had confessed looking through Unilever’s trash for information on its products and strategy.Unilever has brands such as Dove, Axe, Vaseline, Lux, Ponds, and Sunsilk.P&G is equipped with brands such as Head & Shoulder, Olay, Pantene, Gillette, Oral-B, and Ariel.

 
Apple and Samsung
Apple gave the world its first true touch screen smartphone. It pioneered the concept and turned the innovation into booming profit. Then came along a powerful Asian manufacturer Samsung electronics.
Using Google’s Android software it created smartphones and tablets that were similar to Apple products. It slowly started gaining market share, hurting Apple’s margins.In turn, Apple launched patent infringement suits and got the verdict partially in its favour. The Korean rival, however, flooded the market with products that rivalled Apple’s and were cheaper.Last quarter, Samsung managed to sell almost three times as many smartphones as rival Apple, according to Gartner.

Energiser and Duracell
Duracell was the first ever company to introduce an alkaline battery into the market but in 1959 the Energiser battery was introduced by Eveready. Competitive products started the rivalry that has lasted over 50 years now.In 1970, Duracell created an ad campaign featuring the Duracell bunny - the Energiser bunny followed very quickly, and much to Duracell's annoyance, became the more memorable mascot.
  
Coke and Pepsi
It will be apt to call the rivalry between Coke and Pepsi as a war. In fact, their advertising campaign targeting each other is called Cola Wars.Pepsi adverts often focus on celebrities choosing Pepsi over Coca-Cola, supporting Pepsi's positioning as the soft drink for the new generation.Since 1975, Pepsi started showing people in blind taste tests called the Pepsi Challenge. In this campaign. consumers are blindfolded and asked to choose the Cola they like from different available and most of them choose Pepsi.The war even went to space. In 1985, Coca-Cola and Pepsi were launched into space aboard the Space Shuttle Challenger.The companies had designed special cans to test packaging and dispensing techniques for use in zero G conditions. However, none of their units worked as expected, according to Wikipedia.
















108 comments :

  1. Dear VP Sir,

    What is your view on Modern Dairies ? @Rs.10 / Rs.11 is it worth to buy ? Need your extreme help as always

    ReplyDelete
    Replies
    1. Tracking only Heritage foods from this sector.

      Delete
    2. Hi VP sir,
      Your view on heritage foods?
      Thanks and regards
      Vinay

      Delete
  2. Sir, also confirm your Twitter ID. I am unable to find you on twitter. IN this blog the ID given by you is not giving latest update sir.

    ReplyDelete
    Replies
    1. Sir thanks for response. I also like to request you to disclose a specific stock or bucket of stock for small investor like me. Many expert like porinju, shankar sharma, dolly, Ashish etc are discussing stock in open form. And u are an excellanet in identify penny / small stock which are future blue chips. So u can make iur future bright sir. pls suggest some stocks

      Delete
  3. What is ur view on adag stock, I am tracking reliance defense from this...but suspicious about anil amabani group mgt efficiency..please give me ur view on this company

    ReplyDelete
    Replies
    1. Not tracking any cos from the group

      Delete
  4. hi
    what about Omax Autos, Omax Autos wins order worth Rs 90-100 crore from Indian Railways

    ReplyDelete
    Replies
    1. In a recent interview company officials expressed their plans to payback debt .

      Delete
  5. Dear sir due to RBI new debt restructuring scheme is there any companies we can bet on revival tks

    ReplyDelete
  6. Dear VP, I am interested to seek your input on appeoach to stock selection? Using a screener and a list of fundamental parameters I get a lot of stocks. How do we sub select from them? Would it be wise to analyse stocks worth market cap of less than 50cr. Should it be further based on understanding of sectors. Could you please help by advising on the approach.

    ReplyDelete
    Replies
    1. I am not sure about the success of investing in stocks based on the analysis of historical data . That may help to reduce risk but never ensure return .Study the industry potential , analyse promoters ability to utilise upcoming opportunities , their integrity ..etc are more important than historical data crunching.

      Delete
  7. Sir can sudarshan chemicals give returns like granules

    ReplyDelete
  8. Sir, Do u think Ion Exchange still has potential to grow being in sector promoted by gov for smart cities..
    Also, would their subsidiaries will perform in future?

    Pls share your views on Ion Exchange at current situation.

    ReplyDelete
    Replies
    1. Lot of potential in sector , promoters ability and integrity is the key.

      Delete
  9. Sir, u r views on pricol and Hoec

    ReplyDelete
    Replies
    1. Not tracking Pricol.

      Environment clearance for Assam project is crucial for HOEC.

      Delete
  10. Your kind views on ENIL , KSBPUMPS & AIA Engineering

    ReplyDelete
    Replies
    1. Expecting steady business growth for Pump cos.

      Not tracking others.

      Delete
  11. Hi VP,
    Kindly provide your opinion about GeeCee Ventures

    ReplyDelete
  12. Sir, What is your view on Surya Roshni?.

    ReplyDelete
  13. Sir, Kindly share your views on
    1. Ultramarine Pigments Ltd
    2. Zenith Fibres
    3. Sandesh

    Thank you

    ReplyDelete
  14. Sir,
    Are u tracking Themis Medicare.are u positive on company future.Pkese share your view.
    Thanks

    ReplyDelete
    Replies
    1. Its CMP is Rs.540 which earlier suggested @ Rs.94 in the following link:

      https://value-picks.blogspot.in/2012/09/themis-medicare-efforts-will-pay-off.html

      Nothing new to add at CMP

      Delete
  15. Your view on ipo of Qual com

    ReplyDelete
  16. You missed one of the famous war between Fuji and Kodak

    ReplyDelete
  17. sir, can i buy alps industries before delisting from bse (I think from NSE it is delisting). I know u r against telling buy or sell, but at least pl guide us, throw some valuable information.......thanks

    ReplyDelete
    Replies
    1. One can buy any stock from any exchange till it is listed there and broker providing the facility.

      Delete
  18. Hello Sir,
    Please let me know your opinion about one of your old recomendation 'Panacea Biotec'. They have made 72 crores profit last quarter and recently launched Tenepan (teneligliptin), for treatment of type 2 diabetes mellitus in India.

    Kindly let me know your valuable opinion on this.
    Thank you so much for your selfless service.

    ReplyDelete
    Replies
    1. Thank you so much for your valuable suggestion sir

      Delete
  19. Sir willing to know your views on astec life science, wonderla. Thank you.

    ReplyDelete
    Replies
    1. Astec is an already suggested stock @ Rs.57

      http://value-picks.blogspot.in/2010/05/astec-life-science-patience-will-pay_06.html

      Delete
  20. Hello VP,

    Please let us know your on Usher Agro and Bliss GVS.

    Thanks.

    ReplyDelete
  21. Sir, your view on Patels Airtemp?

    ReplyDelete
  22. Sir, it is my observation that you rarely give sell call or profit booking on your earlier recommendations, sometimes it erodes our gains ! Any specific reason, Sir ???

    ReplyDelete
    Replies
    1. An investor should take minimum effort to analyse own risk appetite and study the company at least after buying a stock and take decision accordingly .

      Delete
    2. Thank you, Sir ! You are a driving force who helped me indirectly to become investor from trader... Ganapati Bappa aapko lambi umar de !!!

      Delete
  23. Replies
    1. No change in previous view on ABFRL, Kopran taking too much time to show improvement in business.

      Delete
  24. Please share your view's on
    1. Indag Rubber
    2. Infinite Comp Technology
    3. Sun TV Network
    4. Upper Ganges

    Thank you

    ReplyDelete
    Replies
    1. Indag Rubber suggested @ Rs.19 ( adjusted to stock split) which already turned as a 10 bagger .Nothing new to say at CMP .

      Not tracking other stocks.

      Delete
  25. sir
    Can you provide view on the IL&FS Engineering and Construction ( which is yours early recommendation) .
    one of positive during the recommendation is saudi bin laden group stake .as saudi bin laden is running in downtrend please suggest any rerating

    ReplyDelete
    Replies
    1. you guys are so irritating. I dont know how VP sir has the patience to go through all of your repeated queries. He has answered so many times about ILandFS. Most of you guys do not follow the blog properly and never track his answers. I guess this is one reason why VP sir does not answer a lot of queries he receives. Hats off to his patience.

      Delete
    2. At least ten times replied for the question about this stock in last three months .Pls refer old replies.

      Delete
  26. Your view on oriental carbon & chemical.

    ReplyDelete
    Replies
    1. Oriental carbon suggested @ Rs.93 . Neutral at CMP Rs.555/-

      Delete
  27. Very informative brief on corporate world history.

    ReplyDelete
  28. sir ur view on kanpur plastipack ltd almost debt free co bottomline increase due to raw material decease hence can be by for longterm good growth stock

    ReplyDelete
  29. Sir, Are you tracking Sakuma exports?? Do you see any negativity in its potential??

    ReplyDelete
  30. Sir whats your opinion on Shree Digvijay Cement Company Limited are you following this company.

    ReplyDelete
    Replies
    1. One of the very few zero debt( long term) company in Cement space .

      Delete
  31. Sir,please share your view on Indo Rama synthetics and siti cable

    ReplyDelete
  32. Dear VP ji,

    I am getting this error message when I am trying to sell Ricoh India Stocks...and the system is rejecting withthe following reason "rms rule check t1 holdings including tt/be/z/t/ts, No holding present for entity account". What does it mean?
    Thanks Very much
    Narasimham

    ReplyDelete
    Replies
    1. It is under suspension. But order entry permitted only on every Monday for next few months.

      Delete
  33. Sir, your views on Indiabulls Ventures?

    ReplyDelete
  34. Sir what about Sunil Hitech at these levels?

    ReplyDelete
    Replies
    1. As you are aware there was an IT raid on this company in recent past .Influential investors and FII's normally refrain from such companies at least till the dust settles which may impact valuation in short to medium term

      Delete
  35. VP, with your crap and useless answers you are not doing any help but creating confusion for small investors. Stop this fraud blog and stop cheating your followers here and on MMB.

    ReplyDelete
    Replies
    1. Dear

      Thanks for spending few minutes to point out this fact .Whether stop or continue ( within the framework of applicable rules mentioned by authorities like SEBI) is my freedom. But you have every right to avoid my opinion and save the time you are wasting to read my opinions in this blog or MMB.

      Delete
    2. Why do you spend time here and feeling regret. If u r confused look for somewhere else where someone advises with a buy price and target price. Stock market is always about probability (so u have both ways) and not guarantee (Fixed deposit)
      Thanks in advance for leaving this site.

      Delete
    3. @Anonymous -- get lost. @VP Sir, please continue :) :)

      Delete
    4. Vp sir is the most ethical blogger on indian stock market i hv ever seen in my 9yr carrier he has made fortunes for many ppl.....loads of love vp sir from team dialwealth

      Delete
    5. Well Mr Anonymous...Instead of calling someone as crap and useless why dont you stop your crap and useless comments, that does not do good to anyone and irritates thousands of VP followers like me. Get lost nobody is forcing you to come here and follow VP posts. I bet this idiotic clown who comments as Anonymous continues to follow and benefit from VPs posts secretly but just wants to crib.

      Delete
  36. Sir, need ur valuable advise on valiant communication. Despite good results and a healthy order book, it is stagnant for couple of months. Hope everything is OK with the company. Kindly advise.

    ReplyDelete
    Replies
    1. Let the order book reflect in numbers :). Patience is a 'must' in stock market.

      Delete
  37. Dear valuepick sir, is sharp India a buy now after foxconn acquisition?
    Will it become multibagger?
    Thanks in adv
    Regards

    ReplyDelete
    Replies
    1. Too early to comment.depends on parent company's strategy on India

      Delete
  38. Sir.. Need your opinion on investing In Jewellery stocks with the recent surge in Gold Prices and the expected bullishness. Also pls let me know on GEECEE ventures if you have track it.

    ReplyDelete
    Replies
    1. I am not a big fan of Jewellery business.

      Gwalior Chemicals ( now GEECEE Venture) sold its chemical business to European specialty chemical major Lanxess few years back and now left with real estate business .Company is a debt free one .Since I am not strictly tracking it , no comments.

      Delete
  39. Dear VP, any interesting picks in NBFC sector for our analysis?

    ReplyDelete
    Replies
    1. We have discussed my stocks in the past like Capital first, Capital Trust, Cholamandalam,Arman Finance ..etc at much lower level . One recently listed Bangalore based MFI is a quality one.

      Delete
  40. Vikas Kumar tomerJuly 6, 2016 at 10:46 AM

    Sir your view on guj borocil

    ReplyDelete
    Replies
    1. Already suggested @ Rs.7 which is now @ Rs.97 . One recent info on the below link.

      http://economictimes.indiatimes.com/news/economy/foreign-trade/anti-dumping-duty-likely-on-chinese-textured-tempered-glass/articleshow/53078447.cms

      Delete
  41. Sir Can You Let Me Know Your Views on Polyplex Corporation @ CMP of 290?

    ReplyDelete
    Replies
    1. Detailed view expressed when it was @ Rs.216.please use the search option.

      Delete
  42. VP Sir your view on Bhageria Industries Ltd as it is moving into non conventional energy space ( solar ) . No idea why this is turning 100 % up in around 4 months. what is your long term view on this. Thanks in advance Sir!

    ReplyDelete
    Replies
    1. Not this one alone , every stock in this industry ( Dye- Chem) multiplied in recent times due to surge in product price.Compared with many other cos in this industry its balance sheet is far better.

      Delete
  43. Sir what is your view on MOIL.holding since IPO and under loss.is it worth to hold to get back the cost.

    ReplyDelete
  44. Dear VP sir under Bonus issues can you please explain the significance of record date and ex-bonus dates

    ReplyDelete
  45. will it be good to move out from International travel house to COX and KING?

    ReplyDelete
    Replies
    1. Valuation is cheap in ITHL but business is not growing.

      Delete
  46. Sir why have you not recommended any Stocks from a long time??

    ReplyDelete
    Replies
    1. As you are aware , from June 1 2015 there is lot of limitations to publish BUY/HOLD/SELL recommendations in public media.

      Delete
  47. Sir your view on aluofloride limited please

    ReplyDelete
  48. Sir why are u Not suggesting any Stocks from the long time ,, I think it's been a year since your last stock suggested.. Sir plz kindly think of your new followers

    ReplyDelete
  49. Dear VP Sir,
    You have an uncanny ability to pick up winning stocks out the many floating. Any new ideas that you have been able to discover during this time of high volatility?

    ReplyDelete
  50. Sir pls share your views on southern online bio. It will be very useful to us. Thank you

    ReplyDelete
    Replies
    1. Some positive development , but company should prove. Very low promoter stake is a concern.

      Delete
  51. VP Sir,

    What are your views on Blue Coast Hotels.
    High Profit margin,Reducing debt,etc
    Though the stock has doubled since june.
    Wanted to know what factors affect the performance of this industry(apart from seasonal demand).

    ReplyDelete
    Replies
    1. Not tracking any cos belongs to Morepen group.

      Delete
  52. Sir, Any new thoughts on your old recommendation Indo amines ltd?

    ReplyDelete

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