[Archived] The Dawn Of A New Era

[Uddersfelt Blue]

Sky Sports showing 94/95 season as I write

What a contrast?

[Dan]

Hmm....I think I read somewhere that there have been a number of internal promotions at the club. But what happens when Sam gets a new job (very soon probably) and he comes calling for his old buddies? Remember the vacuum when Hughes took his pals with him? Just when you thought it couldn't get any worse huh?

I'd imagine our new manager will want his own backroom staff anyway? Unless we end up with Steve Kean that is.

[92er]

No response here but Mrs D has been unusually quiet and I dont think her sons(BROTHERS) were at the game yesterday either,

I do know as you mentioned, some emails were blocked so she must have got a few of them through and I just hope she is taking on board some of the points we made, especially the ones about damaging the Venkys brand globally!

[Majiball]

I'm sure Mrs D will be well pleased when she learns you think she looks old enough to be her brothers mother. No wonder you haven't gotten a reply .

Great spot 92er.

[Kelbo]

I'm sure Mrs D will be well pleased when she learns you think she looks old enjoy to be her brothers mother. No wonder you haven't gotten a reply .

Great spot 92er.

Whoops!!!

You can never tell in India, the women marry there at twelve dont they

[John]

No mention of us but for those who care.

B Venkatesh Rao, Jt MD, Venky's India gave his perspective on business going forward.

[philipl]

He choses not to mention us when asked the question.

My reading of that interview is the publicly quoted company will be flat but the privately owned stuff will grow but to be honest, it is all pretty garbled.

Q: How do you expect the earnings of Venky’s India itself to grow- more importantly since the family now has an interest abroad in Europe with the English premier league – will you be able to leverage that presence you have over there to be able to push your products at all?

A: Even I think so because what has happened is first of all putting up a quite a big plant processing plant in Karnataka which is a Rs 200 crore plant which will come in production in the next year. So this plant particularly which is at Bombay-Pune highway it is full of capacities. I think this particular plant which is coming up with ultra modern facilities it should get away not only in India but internationally also. It is directly a listed company.

That doesn't strike me as a particularly direct answer.

Two other questions raise alarm bells for me-

Q: You said these are all in sister concerns – does Venky’s India own any of these sister concerns that you are talking about. Are they subsidiaries? We really want to know what comes into?

A: Sister concern which is family oriented.

Q: We want to know what comes into Venky’s India in the form of earnings and profit next year – how would you forecast FY12 Venky's revenues or profit?

A: FY12 will be very difficult to tell you. It will be a good year but it depends totally the on livestock market and it is not easy to tell you that okay this is what the prediction.

She might as well have asked him if he is taking the public shareholders for a ride whilst the family puts its energies into private business?

[Paul]

Reading the whole interview it's no surprise there are communication problems at Ewood.

[philipl]

The latest on the Saurin Shah claim against Venky's

There are more details about talks and a strange comment from Mrs Desai about sweat equity not being legal. That is news to me!

[Balwer]

The latest on the Saurin Shah claim against Venky's

There are more details about talks and a strange comment from Mrs Desai about sweat equity not being legal. That is news to me!

As far as I can interpret the comment relates to the amount of sweat equity permissable under law, rather than whether sweat equity itself is legal. If this is true and Desai declined that offer and proposed a counter offer I can't see how Shah has any legal grounds for compensation.

[philipl]

Having been in a well funded business with 83% sweat equity, the comment as it stands still doesn't make any sense in the context of English companies.

[Majiball]

So Venky's runs on sweat equity? Its certainly not Venkatash's.

Having read the article on the future of their business I have to ask are those responses normal? He doesn't really seem to answer any of the questions.

He does give the impression that they own several more businesses.

[67splitscreen]

So Venky's runs on sweat equity? Its certainly not Venkatash's.

Having read the article on the future of their business I have to ask are those responses normal? He doesn't really seem to answer any of the questions.

He does give the impression that they own several more businesses.

I think this road looks familiar,(other businesses) only a percentage of their businesses are under the Venky's India banner (the listed company) all the other businesses seem to be linked to the same core products as the Ltd company but private family businesses.

There is a big farm food plant in South America for instance, brings grain in from the surrounding countries (Brazil Etc cheapest grain in the world) processes it and ships it to India, Feed prices account for around 75% of their running costs, when this factory went on stream last year their profits soared.

As for the article it's about as clear as the rest of the statements they have made, unless Kean speaks Indian god knows what he thinks he was told at the meeting in Pune.

[Balwer]

I think this road looks familiar,(other businesses) only a percentage of their businesses are under the Venky's India banner (the listed company) all the other businesses seem to be linked to the same core products as the Ltd company but private family businesses.

There is a big farm food plant in South America for instance, brings grain in from the surrounding countries (Brazil Etc cheapest grain in the world) processes it and ships it to India, Feed prices account for around 75% of their running costs, when this factory went on stream last year their profits soared.

As for the article it's about as clear as the rest of the statements they have made, unless Kean speaks Indian god knows what he thinks he was told at the meeting in Pune.

There is no doubt the VH Group have several businesses, and that Venkys is the only listed one (and therefore the only one we can gain access to the financials). The crux is how much contribution Venkys makes to the group's revenues. I personally believe it's a large portion, more than 50%, as that has been hinted at and referred to in various articles. Others on this site are of the opinion that Venkys counts for only a small percentage (a common statement to support this argument is 'well how could they afford to buy Rovers otherwise?'). As Venkys made a half year profit of 9m recently (a record) then every Rovers fan would hope for the latter...

As to the article itself, it's poorly worded and somewhat vague. Rao talks about flat revenue in Venkys through 2012, while other business areas will grow 125% (not sure if that's top line or bottom line, presumably revenue).

Not bad, they're consolidating while the core business struggles with market conditions. They're clearly quite astute businesspeople, don't know why people are concerned about that element. As to not addressing Blackburn in the article, I think it is addressed, just not in the way that many Rovers fans would hope it would be.

[67splitscreen]

There is no doubt the VH Group have several businesses, and that Venkys is the only listed one (and therefore the only one we can gain access to the financials). The crux is how much contribution Venkys makes to the group's revenues. I personally believe it's a large portion, more than 50%, as that has been hinted at and referred to in various articles. Others on this site are of the opinion that Venkys counts for only a small percentage (a common statement to support this argument is 'well how could they afford to buy Rovers otherwise?'). As Venkys made a half year profit of 9m recently (a record) then every Rovers fan would hope for the latter...

As to the article itself, it's poorly worded and somewhat vague. Rao talks about flat revenue in Venkys through 2012, while other business areas will grow 125% (not sure if that's top line or bottom line, presumably revenue).

Not bad, they're consolidating while the core business struggles with market conditions. They're clearly quite astute businesspeople, don't know why people are concerned about that element. As to not addressing Blackburn in the article, I think it is addressed, just not in the way that many Rovers fans would hope it would be.

I'm not going there, got the tee shirt and the scars.

Besides the Roas own us allegedly not Venky's.

[Balwer]

I'm not going there, got the tee shirt and the scars.

Besides the Roas own us allegedly not Venky's.

Haha, I do feel like we've been down this road before...

[Exiled in Toronto]

He choses not to mention us when asked the question.

For the past month it's been 'Why don't they STFU?', now it's 'why don't they mention us?'

[Paul]

Could someone explain "sweat equity" please? I assume it to be equity given to companies / individuals in return for their knowledge / work, hence the term sweat?

[PAFELL]

Could someone explain "sweat equity" please? I assume it to be equity given to companies / individuals in return for their knowledge / work, hence the term sweat?

In brief - Time and effort contribution to a project. Well thats how I understand it. I maybe wrong.

[Bobby G]

Yes that's exactly what sweat equity is.

Not the most promising interview but no point to comment cause the brigade will criticize any criticism.

About Shah, its turning into a sparring contest, although from initially denying any role for Shah a couple of months ago, there has been a confirmation that things were going on. Where there is smoke, there is fire.

[Kelbo]

I'm not going there, got the tee shirt and the scars.

Besides the Roas own us allegedly not Venky's.

If they do Splitscreen and I cant argue the fact, what is the position of Venkys BRFC UK Ltd?

[philipl]

Venkys London Limited (unless there is another company) own 100% of Rovers as of tonight and are themselves owned by something which is controlled/owned by the Rao family. How the Rao family holdings are structured and which family member owns what has never been disclosed.

What is clear is that Venky's India which is quoted on the Mumbai Stock Exchange has no ownership of Blackburn Rovers.

[PAFELL]

Yes that's exactly what sweat equity is.

Not the most promising interview but no point to comment cause the brigade will criticize any criticism.

About Shah, its turning into a sparring contest, although from initially denying any role for Shah a couple of months ago, there has been a confirmation that things were going on. Where there is smoke, there is fire.

Ok lets say shah is right and the courts rule in his favour. How could he gain? Would it just be a compensation payout to him from venky's? Or could he demand an involvment in Rovers?

[philipl]

It could only be a cash compensation unless the two do a settlement outside the Court.

For all we know, Venky's might be beginning to smell the Kentaro coffee or some other brown stuff and be in need of the sports expertise Shah's family could bring to the table.

[Bobby G]

If they are looking to get into bed with each other then they havent started on the right foot...