Mumbai, Nov 24: The Videocon-ORG-Gfk battle refuses to abate. Even as rumours of an out-of-court settlement gained currency, Videocon International Ltd seems to have drawn out the long knives, finally. Last week, the consumer electronics major made good its threat and filed a Rs 100-crore suit against ORG-Gfk. Earlier, in July '99, Videocon had served notice to ORG-Gfk warning that it would take legal action against the research agency. The case has been filed in the Mumbai High Court.Simultaneously, Kitchen Appliances Limited, a Videocon affiliate, has received an extension on the injunction it had obtained against ORG-Gfk earlier, restraining the research agency from publishing its flagship brand Sansui's market shares. The earlier injunction order now stands extended till December 7, 1999.
``The injunction prevents ORG-Gfk from publishing Sansui's CTV market shares in its retail audit reports. The agency can however publish figures supplied by the company,'' says a Videocon International limited spokesperson.
ORG-Gfk officials could not be contacted despite repeated attempts.For the retail audit major ORG-Gfk this marks a more serious challenge than the legal notices which had hitherto been sent to it by Videocon International. The latter had taken strong exception to the representation of its colour television market shares in ORG-Gfk's retail audit reports.The Rs 550-crore Kitchen Appliances India Ltd had slapped a Rs 100-crore suit on the research agency in August this year.
Even as the market is abuzz with the possibility of an out-of court settlement between the two parties, Videocon International Limited is showing little signs of budging from its original stance. Says a senior company official, ``We are open to a mutual settlement only if ORG-Gfk reconsiders its panel of distributors and research methodology.'' This possibility seems dim, as ORG-Gfk has denied any such initiative.
Videocon International Limited's grouse against the retail audit company is two fold. One, the size and composition of the panel: at 2,000, the total number of dealers tracked by ORG is very small, claims Videocon, given the total universe of 20,000 dealers. The company also believes that the panel does not include large-sized dealers like Vijay Sales in Mumbai and Tamilnadu-based Vivek's, Vasant & Co and Jainsons which together account for 25 per cent of sales in the southern state.
The other issues relate to the methodology of the research audit such as the frequency of change in the composition of its audit panel, or ignoring exclusive, company-owned showrooms. Videocon would also like the research agency to be more transparent about its panel and research methodology.
ORG-Gfk is the only organisation which carries out retail audits of consumer durables in the Indian market.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.