Business of Brands- Subhiksha, Bajaj Auto

SUBHIKSHA IN TIFF WITH DRUG WHOLESALERS

Issue:
Subhiksha(MD-Mr.Subramain) has sent legal notice to its wholesalers in Karnataka, gujarat and Chandigarh for withholding supply of medicines.

View:
The law mandates that wholesalers cannot deny orders from retailers when they have stocks.

Counterview:
According to All India Druggist and Chemist Association(AIOCD), Subhiksha was unfairly competing with 5.5 lakh stand-alone chemists (and affecting their bread and butter) across the country by selling drugs at 10% discount.
Competition should be on value addition and services and not on price.

Action:
Subhiksha officials and AIOCD are scheduled to meet on 1st Feb.
AIOCD Secretary(Mr.Shinde) said business interests of its members will not be compromised and AIOCD is ready to take on Subhiksha in court.


BAJAJ AUTO FOLLOWING TATA NANO?

The two and three wheeler major (Bajaj Auto) is negotiating with Nissan-Renault for a foray into ultra low-cost cars and developing light pick up trucks on its own and forging partnerships and deals for high-end bike companies overseas.

Go with the approach of motor cycle maker which cuts down development costs and manufacturing expenses.