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| INDUSTRY Tata Motors to hike wages despite slowdown INTERVIEWS/FEATURES India-designed car likely in 3 years, says Maruti Strike at Mahindra and Mahindra's Nashik plant called off COMMERCIAL VEHICLES Ashok Leyland hopes to liquidate stocks by June Ashok Leyland: Not yet out of the woods CONSTRUCTION & AGRI MACHINERY COMPONENTS Oeitker opens its lone manufacturing facility in India Oetiker to supply clamps to VW, Hyundai India arms | ALLIED INDUSTRIES MRF declares lockout at Tamil Nadu factory MRF lockout likely to affect auto cos production FINANCE & INSURANCE Shriram Transport: Slow but steady LUBRICANTS & ALTERNATIVE FUELS Oil prices down in Asian trade INTERNATIONAL NEWS GM, UAW in dispute over imports and plant closures Toyota rolls out new Prius to fend off rivals ECONOMY & FINANCE Market poll vaults 2,110 points Citi retains India's growth forecast at 5.5%
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| INDUSTRY Go To Top Swaraj Baggonkar & Danny Goodman Business Standard (Web & Print Edition) Mumbai: Battered by the recent economic downturn, the Indian automobile industry is looking up to the newly elected government to implement some key measures to kickstart car sales. Top on their wishlist is ensuring availability of auto loans at lower rates of interest, continuation of some of the sops announced earlier in a stimulus package and a reduction in taxes. With regard to the two-wheeler industry, there is an urgent need to bring down interest rates and ensure easy availability of consumer finance, Hero Honda Managing Director Pawan Munjal said. Also, he said there is an urgent need to withdraw the additional excise duty enforced in June last year, which has stifled growth. In an effort to discourage customers from buying big engine vehicles, the government had imposed an additional excise duty of Rs 15,000 on vehicles with engines in the range 1500cc-1999cc and Rs 20,000 on vehicles with engines of more than 2000cc in size. A senior executive from the Society of Indian Automobile Manufacturers (Siam) pointed out that this had impacted sales. The government should withdraw the duties, as oil prices have come down from their highs of last year, the source said. Also, the government has to take a call on growing opposition from some car makers on the increasing differential in duties paid on small cars as against large cars, which has widened in the past year. Compact cars with engine size of less than 1200cc (petrol) and 1500cc (diesel) are taxed at 8 per cent, while others are taxed at 20 per cent. Ford India Managing Director Michael Boneham also said there is a significant differential in the way automobiles are taxed in India. The government should stop discriminating amongst small cars and mid-sized cars. We should have a more rational structure, as the gap is widening dramatically, he said. Sona Group Chairman Surinder Kapur said the government needs to quickly implement a uniform general sales tax (GST) regime across the country. Specific reforms, like implementing a uniform GST, have to be undertaken by the new government so that the whole country is not divided into numerous markets with numerous tax rates, but is a single market for all manufacturers, Kapur said. Meanwhile, commercial vehicle (CV) manufacturers are hoping for a further extension of the accelerated depreciation benefit of 50 per cent beyond the set September-end deadline. The government, in its second fiscal stimulus package announced in January, had declared an accelerated depreciation on all vehicles bought between January 1 and March 31. As a senior executive from Ashok Leyland said, the accelerated depreciation certainly helped the CV industry, ...but the segment needs more support. TATA MOTORS TO HIKE WAGES DESPITE SLOWDOWN IANS The Economic Times (Web Edition) See similar story in: Business Standard (Web Edition), The Hindu Business Line (Web Edition), The Telegraph (Web Edition), The Times of India (Web Edition) Kolkata: Auto major Tata Motors on Monday said it would hike wages of its employees this fiscal despite the effects of the slowdown, though the increment may not be in tune with that of previous years. http://www.business-standard.com/india/news/tata-motors-to-hike-wages-for-fy10/62203/on http://www.thehindubusinessline.com/2009/05/19/stories/2009051951580300.htm http://www.telegraphindia.com/1090519/jsp/business/story_10988272.jsp | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CARS, SUVs, MUVs Go To Top PTI See this story in: The Economic Times (Web Edition), Asian Age (Web & Print Edition), The Statesman (Web Edition), The Hindu Business Line (Web Edition), Business Standard (Delhi Print Edition) Hyderabad: Leading carmaker Maruti Suzuki said its all models, including the Maruti 800 and Omni, are going through various modifications and upgradation to meet Bharat Stage IV emission norms. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/ http://www.asianage.com/presentation/leftnavigation/news/business/maruti-set-to-upgrade-800.aspx http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=255031 http://www.thehindubusinessline.com/blnus/02181965.htm
The Hindu Business Line (Web & Print Edition) Hyderabad: Engineers at the countrys largest carmaker Marutis research and development (R&D) centre expect to roll out a fully India conceptualised, designed and developed car within three years, according to Mr I.V. Rao, Managing Executive Officer, Engineering, Maruti Suzuki India Ltd. This project will take us to the next level of engineering and design work from what we have been handling in the last few years in models such as Swift, Dzire, Zen, SX4 and A-Star. Earlier, it has been joint development work between Indian engineers and Suzuki researchers in Japan, Mr Rao said. Speaking to Business Line after the launch of its latest hatch, Ritz, in Andhra Pradesh on Monday, Mr Rao, who heads the R&D team in India, said this development work would entail significant expansion and investment in engineers. Without giving away much as to the nature and type of the India developed car, Mr Rao said most of the changes we bring about in existing models are based on outcome feedback. Likewise, the new car is likely to meet the latent demand in India. We now have 720 engineers in India and expect to take this number up to 1,000 by next year. As a part of this expansion, we are in the process of recruiting automotive engineers and experts from not just within the country but from other parts of the world, he said. Test track in Haryana In the R&D expansion, which is part of the Rs 9,000-crore expansion project announced by the company, we will develop a test track in Haryana. The company is in talks with the Government to acquire 500 acres more near Manesar plant, Mr Rao said. Referring to ongoing research engagements, he said the focus is on tweaking engines and developing technologies to ensure some of the models comply with BS IV norms by 2010. These include Maruti 800 and Omni. Though we have a smaller 660 cc engine, we believe that it will not be suitable for India requirements as Indians prefer a soft pedal rather than the rev-up approach in other markets. Therefore, we are tweaking the existing engines, he explained. Referring to the Ritz launch, Mr Rao said that the A-2 segment is poised to witness several more launches and each time a new model is launched, it has helped expand the market. He felt the Ritz positioning would ensure there is no cannibalisation of models. To up capacity The Manesar plant capacity is to be further expanded to 3,00,000 from 2,00,000 by October and this will help ease the backlog and wait list of buyers in some models such as Swift and Dzire, he said. http://www.thehindubusinessline.com/2009/05/19/stories/2009051950980200.htm STRIKE AT MAHINDRA AND MAHINDRA'S NASHIK PLANT CALLED OFF PTI See this story in: The Economic Times (Web Edition), Business Standard (Web & Print Edition) Nashik: The fortnight-long strike at Mahindra and Mahindra's plant at Satpur here was called off tonight following an amicable settlement reached between the management and internal unions, company sources said. http://www.business-standard.com/india/news/mm-workers-call-off-/tool-down/-strike/358560/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top Sally Seth Mint (Web & Print Edition) Mumbai: Hopes of an early revival in demand for new trucks in a limping economy have hit a hurdle with the easy availability of vehicles that were repossessed from truck owners over loan defaults. Local sales of commercial vehicles, mainly trucks and buses, have risen to 41,881 units in March from a low of 17,920 in December, lending some cheer to the stressed operations at Indias big truck firms. But an estimated stock of up to 45,000 trucks repossessed in fiscal 2009double from the year beforeis beginning to eat into fresh demand for such vehicles. In addition, with some signs of a recovery and better cash flows, some truck owners, who defaulted on loan repayments and lost their vehicles to financiers, are now reclaiming their repossessed vehicles. Precise data on to what extent these vehicles are affecting new sales is not available. On average, India sells 30,000-40,000 new trucks and buses per month. About one in three of such vehicles sold are what are called heavy commercial vehicles. R. Sridhar, managing director, Shriram Transport Finance Co. Ltd, estimates there are now close to 20,000 repossessed heavy vehicles for sale in the industry, especially trucks and tippers, driven by financiers need to liquidate these assets, as well as to free up space for repossessed vehicles. Heavy vehicles are those with a gross weight of at least 16 tonnes. According to New Delhi-based Indian Foundation of Transport Research and Training, between 40,000 and 45,000 heavy vehicles have been repossessed by auto finance companies in fiscal 2009, about 28,000 in the December quarter alone. The repossessions in the fiscal gone by were significantly higher than the 20,000-25,000 units seized or returned to financiers in fiscal 2008, says the foundation. Demand for such heavy vehicles, measured by new units sold by auto makers such as Tata Motors Ltd and Ashok Leyland Ltd, has contracted one-third to 183,541 units in fiscal 2009 from 274,582 units a year ago, according to industry body Society of Indian Auto Manufacturers. Such vehicles are typically used for hauling commodities such as cement, iron and steel on key long-haul routes, as well as in mining activities. Movement of such commodities, which are largely used in manufacturing and construction, has slowed with crimping demand from these segments tracking the economic slowdown and a tighter financial environment. The overall drop in manufacturingfactory output is growing at its lowest in 16 yearsis being reflected in the lower capacity utilization of goods carried on trucks, according to one analyst. From October to February, the capacity utilization of trucks (for goods) declined 25%, and continues to be lower than last years level despite a small recovery since February, said Manoj Mohta, head of research at Crisil Ltd, in turn affecting transporter profitability. Given that loads are already low, if a truck operator finds a slightly older vehicle at a competitive price, he will choose that over a new one, said Rajive Saharia, executive director of marketing at Chennai-headquartered Ashok Leyland. Shriram Transports Sridhar said the prices of such repossessed vehicles, particularly those that are less than a year old, have led to a drop in prices by as much as 20%, since capital investment in such vehicles is lower than (in) the newer ones. Other smaller truck financiers such as Sudhir Khanna, executive vice-president, commercial vehicles, at Kotak Mahindra Bank Ltd, concurred with the trend, though one financier, Shyam Mani, managing director, Tata Motorfinance, was of the view that there was no impact on new sales from the repossessed stock in the business. In a 6 May conference call with the analysts, Siddhartha Lal, managing director and chief executive officer at Eicher Motors Ltd, complained of an oversupply of trucks partly owing to the supplies of cheaper trucks coming in from repossessed stocks. The highest demand, however, say auto makers, is for used or second-hand tractor trailers and tippers (vehicles with gross weight of 30-49 tonnes). Crisils Mohta said the sudden sales of repossessed vehicles has also been triggered by the need of the bankers to set their portfolios right. In the initial phase of the downturn, many of them were in denial mode and did not agree to a lower price, but now that the reality has hit them, they feel its better to sell them (surrendered assets) rather than being hit in the longer run, he said. http://www.livemint.com/2009/05/18232654/Sale-of-repossessed-vehicles-i.html ASHOK LEYLAND HOPES TO LIQUIDATE STOCKS BY JUNE The Hindu Business Line (Web & Print Edition) Chennai: Ashok Leyland expects to liquidate its inventory of finished goods by next month end, the companys Managing Director, Mr R. Seshasayee, said at a press conference on Friday. In the recent past, Ashok Leyland had followed a strategy of also making vehicles designed to meet specific user requirements. However, in the last few months, these special purpose vehicles have remained unsold with dealers, as the market preference turned towards more general-use vehicles. As such, Ashok Leyland was stuck with a sizeable inventory of finished goods. Mr Seshasayee confirmed this, but did not want to disclose the size of the non-moving inventory. Now the company has been taking back the vehicles from the dealers and, in what Mr Seshasayee termed as a massive vehicle re-building programme, has been converting them into vehicles that are more in line with the demand in the market. By doing this, the inventory would be cleared by June, it was said at the press conference. Help from JNNURM Mr Seshasayee said that under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme of the Government, funding for the purchase of 5,300 buses have been released to various State transport undertakings (STUs). This allocation will be split among the bus manufacturers and Ashok Leyland has been allotted 2,800 buses. Against this, Ashok Leyland has received firm orders The Delhi Transport Corporation has placed orders for 875 buses and other STUs have ordered for another 120 buses. Funding under the JNNURM programme to the STUs for fleet replacement was announced as an element of the Governments stimulus package to kick-start the economy. Under the scheme, STUs will be enabled to purchase 15,000 buses from Ashok Leyland and Tata Motors. Exports Last year, Ashok Leylands exports fell to 6,812 vehicles, against 7,285 vehicles in the previous year. In a bid to export more this year, Ashok Leyland plans introduction of exclusively designed truck range for export markets. Mr Seshasayee said the company would capitalise on expected demand for price competitive products following revival in global markets. http://www.thehindubusinessline.com/2009/05/19/stories/2009051951080200.htm ASHOK LEYLAND: NOT YET OUT OF THE WOODS Shobhana Subramanian & Vishal Chhabria Business Standard (The Compass) Mumbai: Its been a rough ride for Ashok Leyland in 2008-09 with sales down 23 per cent to Rs 5,981 crore. The fall in the March quarter was over 50 per cent. That was to be expected because the companys volumes during the year were down over 40 per cent and it lost market share in the commercial vehicles (CVs) space. The year-on-year fall in the operating profits margin of over 200 basis points, in the March quarter, was disappointing. Also, analysts point out that an amount of Rs 50 crore, was not included in the profit and loss account for foreign exchange transactions since it followed the modified AS11 norms. Besides, high interest costs pushed down the recurring profits by 82 per cent. Industry watchers are not quite convinced that the CV cycle has turned and feel volumes may fall slightly in the current year too, despite signs of freight rates firming up in the southern and eastern parts of the country. The management says it should be able to recoup some market share in CVs and hopes to see better volumes for buses this year, a segment in which it has a strong 46 per cent share. While the lower prices of raw materials will benefit Ashok Leyland, it needs to clock better volumes to be able to extract significant benefits. Also the company hopes to save on working capital once it clears the inventories and pipeline stocks. It has scaled back its total capital expenditure and investments by Rs 1,000 crore toRs 2,000 crore for the next three years, which would ease the strain on the balance sheet. While all these measures will help, ultimately Ashok Leylands recovery hinges on an economic turnaround. But despite easier access to koney, fleet operators mat wait for freight volumes to pick up before they invest in new trucks. At the current price of Rs 24.70, the stock trades at about 12 times estimated 2009-10 earnings but given the somewhat uncertain outlook for CVs, that multiple is hard to justify. http://www.business-standard.com/india/news/ashok-leyland-not-yet-outthe-woods/358510/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2/3 WHEELERS Go To Top T E Narsimhan & Swaraj Baggonkar Business Standard Chennai/Mumbai: The Madras High Court set aside its earlier order restraining countrys third largest two-wheeler manufacturer TVS Motors from manufacturing and marketing vehicles with twin spark technology. The bench consisting of acting Chief Justice of Madras High Court S J Mukhopadhyaya and Justice Ibrahim Kalifula set aside the earlier order according to which TVS Motors was restrained from using the twin spark technology, which was patented by Pune-based, India's second largest two wheeler manufacturer Bajaj Auto. Todays judgment will now allow TVS Motors to use and market the disputed technology in its products. Bajaj has been using the twin spark technology in all of its 10 models. It first deployed that technology in the Pulsar range more than five years ago. A senior TVS Motors officials confirmed the Madras High Court's ruling of today. The court has ruled that we have not infringed on anyones technology and we are happy with the verdict. The written copy of the verdict will be shared by the court tomorrow. The case has been going on for the past one year when TVS Motors had appealed against the order before a division bench of the Madras High Court, said the official. When contacted by Business Standard, Ravi Kumar, VP (business development), Bajaj Auto said, We have not yet received a copy of the judgement. It is expected tomorrow. We will be able to discuss our future course of action only after going through the copy. It may be recalled in February last year the Madras High Court restrained TVS Motor Company from manufacturing, marketing and selling its 125 cc motorcycle TVS Flame after Bajaj Auto allege that bike used twin spark plugs to run the engine, a patented technology of Bajaj Auto. The order came after a petition was filed by Bajaj Auto seeking to restrain TVS from manufacturing and selling TVS Flame, Justice P Jothimani granted the stay order. The Judge also dismissed the petition filed by TVS to restrain Bajaj from interfering with the manufacture and sale of its new motorcycle. Originally, TVS Motor Company filed a petition seeking to restrain Bajaj Auto from issuing groundless threats to it and also sued the latter for Rs 250-crore damage. In December 2007, based on the Bajaj Auto petition, a single judge of the Madras High Court directed maintenance of status quo on bookings for the new bike. However, on an appeal from TVS Motor again, a division bench had stayed the single judges order and allowed TVS Motor to go ahead with the production and selling of Flame. Against this, Bajaj filed a special leave petition before the Supreme Court in January 2008 for a stay on sale of Flame directed the single judge of the Madras HC to hear the case. Accordingly, the petition was posted for hearing. During the hearing TVS Motor has told the court that the vehicle is protected by a licence granted by a registered patent holder viz by an Austrian company called AVL List GmbH, globally known for the developing engines. TVS further applied to the IPAB for revocation of the patent existing in the name of Bajaj. TVS claims that its bike is a new version based on its own innovation and does not in anyway relate to any bike produced by Bajaj Auto. Bhupesh Bhandari Business Standard New Deljhi: On the first of every month, two-wheeler companies disclose their sale figures for the previous month. May 1 was no different. Hero Honda, the countrys largest and most valuable two-wheeler company, said it logged sales of 370,575 two-wheelers in April, up 29.5 per cent from April 2008. Its closest rival, Bajaj Auto, said sales fell 24 per cent to 169,119 during the month. The gap between the two rivals had expanded to over 200,000. Not so long ago, Bajaj Auto was giving sleepless nights to Hero Honda. In September 2006, it had come close to displacing Hero Honda from the top slot. Hero Hondas rule as the leader of the Indian motorcycle market, second only to China in size, it looked would soon be history. The partnership with Honda of Japan (it provides technology and owns 26 per cent of Hero Honda) meant exports couldnt make up for loss of domestic market share. (Hero Hondas exports are restricted to markets where Honda doesnt have a presence Nepal, Bangladesh, Colombia and so on). There was palpable tension in the company. Left with no choice, it took a decision that changed its face for ever. We said we will focus on market share rather than profits, recollects Hero Honda Managing Director and CEO Pawan Munjal. Result? From a producer of fuel-efficient motorcycles, Hero Honda has morphed into a marketing-led organisation. Advertising campaigns, product refreshes and brand health walk blindfolded into the Hero Honda office in a crowded south Delhi market and the language spoken there could lead you to mistake it for an FMCG company. Every two-wheeler company is focused at the product-end of the story. But all products are similar, says brand consultant Harish Bijoor. Hero Honda is the first to go beyond that. It shows in its domination of cricket, selection of youth and style icons, and association with shows like MTV Roadies which improves involvement with the hinterland. This was the first change Hero Honda internalised in those turbulent days. All motorcycles and their advertisements looked similar. The diagnosis was that the companys differentiation in terms of propositioning to customers was weak. That was the first gap that needed to be plugged. New segments Hero Honda found that these are not watertight categories. Customers, for instance, trade freely between a top-end 100 cc motorcycle and a low-end 125 cc motorcycle or between a premium 125 cc motorcycle and a basic 150 cc motorcycle. While a customer does look at the engine capacity, what he seeks is a holistic experience. So, Hero Honda decided to look at the motorcycle market not from engine capacity but from the customers point of view how he brackets the products available in the market through his demographic and psychographic profile. This took the company to unchartered waters of consumer profiling what is his lifestyle and attitude, what is it that he holds dear in life and so on. The segments, in Hero Hondas scheme of things, are: Entry (35 per cent of the market), deluxe (50 per cent) and premium (15 per cent). Hero Honda Vice-president (sales and marketing) Anil Dua, who joined Hero Honda around September 2006 from Hindustan Unilever, says the company has a lions share of the first two segments and a growing share of the premium segment. More important, this view of the market has become the cornerstone of Hero Hondas strategy. It now shapes the companys product development, placement and promotion moves. Hero Honda comes out with new motorcycles, variants and refreshes keeping the customer profile of each segment in mind. This shows in the commercials which no longer talk of fuel economy (remember Fill it, shut it, forget it?) or power alone. Thus, the advertisement for the Karizma (premium segment) comes with the punch line, Always game. The ad for the premium segment Hunk doesnt talk of speed or power at all the focus is on the looks even while standing. The CBZ Extreme comes with the promise, Thinking is such a waste of time. Both the Hunk and CBZ Extreme are 150 cc bikes but talk to different customers, says Dua. We have created very sharp positions for all our brands. You cant substitute one model for another in any advertisement. This is important. Hero Honda has a large portfolio of products (13 motorcycles and one scooter), so it has to create distinct position for each so as to avoid customer-confusion and cannibalisation of products. Several automobile companies in the world put their products through a group of users before launch. It is standard practice. Hero Honda even puts all its advertisements through such groups. We dont move an inch without consumer feedback, says Dua. On behalf of Hero Honda, TNS talks to thousands of customers every month to monitor the brand health share of mind (a lead indicator of share of market) and first-choice, cut-through (how the brand and its advertisements stand in the clutter), share of voice, loyalty indices and so on. Hero Honda has upped the advertising ante in the last couple of years. When it decided to chase market share and not profits, it also decided that it would offer no discounts on its motorcycles. (Even when the Cenvat rate was cut 4 per cent late last year, it did not cut prices of its models uniformly well-entrenched models were left untouched, prices of some others were dropped more than 4 per cent. Clever!) The money saved by plugging the discounts was ploughed back into brand promotion. And there was some aggressive planning. Last year, the company launched a three-minute advertisement on television to mark its silver jubilee. That would have cost a bomb. But Dua and his team worked with channels for six months. They were able to bring the air-time price down by half against firm commitments. Research showed that Hero Hondas target customers (age bracket of 18 to 35 years) relate to four subjects: Cricket, music, movies and adventure. Thus, it roped in film stars Hrithik Roshan and Priyanka Chopra, joined the Indian Premier League sponsorship bandwagon, and got associated with television shows like Sa Re Ga Ma Pa on Zee TV and MTV Roadies. Two-wheelers for all Hero Honda relies heavily on variants and refreshes because they cost less than a whole new product. That way, you get more bang for the buck, says Dua. The Passion Pro, for instance, was an all-new motorcycle but was launched under the bestselling Passion brand. Sometimes, the profile of an existing brand fits the new product. For example, the company had a new product ready for launch in October 2006. It decided to call it CBZ Extreme, though the CBZ brand had been discontinued in 2005! CBZ is a brand about the spirit, so we can stretch it, says Dua. Some time in early-2006, Hero Honda got into scooters with Pleasure, again with a unique positioning Why should boys have all the fun? We were a late entrant and therefore had to do something innovative, says Munjal. The consumer insight here was that women want freedom of movement and a scooter could address that demand. It subsequently roped in Priyanka Chopra as the brand ambassador and started 20 Just for Her sale and service outlets staffed only by women. In a little over three years, Pleasure has been refreshed thrice. Production is up to 14,000-15,000 per month and Hero Hondas market share has reached 13-14 per cent. (At the time of the launch, the company had targeted 10 per cent market share in three years.) Rural rescue As a result, 2007-08 was bad for the industry. But Hero Honda found that its sales were flat. This was because of its strong sales in the rural markets almost 40 per cent of total volumes, say Munjal and Dua. These, mind you, are only estimates. The company doesnt have a single dealer in villages. All purchases are done in towns and cities. Still, it is a known fact that urban consumers depend more on finance than their rural counterparts. So, the drop in the flow of consumer finance impacted urban customers much more than rural customers. Hero Honda was quick to realise that there was a huge opportunity waiting to be tapped. A rural vertical was set up under Dua some time in 2007. Five hundred sales representatives were taken on board for the mission Har gaon, har angan (every village, every courtyard.) These representatives have been given work tasks and not sale targets they need to meet potential customers and opinion leaders in villages. So far, Hero Honda has mounted three two-month long waves through these men. Each wave has resulted in additional sale of 15,000-16,000 motorcycles. Farmers, Hero Honda knows, have money in their pockets twice a year when they harvest their crop once around May and June and then around October and November. These waves are mounted just before the harvest so that Hero Honda is on their radar screen when they have cash in hand. It also realised that one reason customers in these markets choose Hero Honda over others is the easy availability of spares and authorised mechanics. As a result, in the resale market, it commands a premium over rivals. This makes Hero Honda a preferred brand, claims Munjal. Thus, the company decided to ramp up rapidly its touch points with customers showrooms, service centres and so on. From 2,000 in 2006, the number has risen to 3,500 now. Munjal says the plan is to add at least 500 every year. Most of these will be service points. Customers can travel over long distances to buy a motorcycle but not for service. A customer can take his motorcycle for servicing four or five times a year, adds Dua. Many of these touch points can start as a service centre and over time become a sale centre. Challenges ahead The Nano will not impact two-wheelers. You need to look at the total cost of ownership installments, cost of fuel, maintenance, service, insurance, parking and road tax, says he. The new Honda motorcycle doesnt come as a surprise to us just like the Honda scooter didnt come as a surprise. There will be one more motorcycle in the market. Still, Hero Honda is not taking any chances. Munjal has tasked his engineers to come out with a low-cost motorcycle, one that combines the price of a moped and the performance of a motorcycle, through value engineering and tax planning. Knocking a couple of thousand rupees from the current price points (Hero Hondas cheapest bike currently costs around Rs 31,000) will not help. The price target could be well below Rs 25,000. Could Chinese parts be an option? I wish we can do it here itself and there is no need to go to China, says Munjal. http://www.business-standard.com/india/news/full-throttle/358471/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top Nandini Sen Gupta The Economic Times Amtek Auto, the Delhi-based auto component maker has entered into 50:50 joint venture with Sumitomo Metals, which is part of Sumitomo Corporation of Japan. The Rs 100-crore joint venture will produce and sell forged crankshafts that move pistons in car engines. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" OEITKER OPENS ITS LONE MANUFACTURING FACILITY IN INDIA PTI See this story in: The Economic Times Raigad (Maharashtra): Swiss auto clamps maker, Oeitker Group, on Monday inaugurated the first phase of its lone manufacturing facility in India and its ninth globally, at Patalganga in Maharashtra. OETIKER TO SUPPLY CLAMPS TO VW, HYUNDAI INDIA ARMS Manu P. Toms The Hindu Business Line See similar story in: The Financial Express, Yahoo India Mumbai: Oetiker, the Swiss-based manufacturer of auto clamps with operations in Patalganga (Maharashtra), plans to kick off supplies to the Indian arms of Volkswagen (VW) and Hyundai. Once production is in full swing, we will begin supplying clamps to VW and Hyundai from this plant. We are doing initial sampling now, Mr Ulrich Meier, Chief Executive Officer, Oetiker Group, told Business Line. The plant has the capacity to produce 75 million clamps annually. About 12 million Oetiker clamps are being imported by the Indian automotive industry for various applications in drive trains, power trains, steering, fuel lines and coolant circuits, he said. There are other potential customers on the anvil. The company may cater to Ashok Leyland and Fiat from Patalganga. We have lined up nearly 15 OEMs (original equipment manufacturer) and component makers and expect to supply around 25 million clamps this year, said Mr Ashwani Keswani, Country Head, Oetiker India. Marketing the product The company has also had talks with Tata Motors, Mahindra & Mahindra and Maruti-Suzuki. Our clamps are being used in the Fiat Linea and Maruti Ritz. There are 12-14 Oetiker clamps in the Tata Nano too, he added. Driveshaft maker, GKN is among the Tier 1 ancillary suppliers that sources clamps from Oetiker for eventual deliveries to OEMs. The company is also looking at business in the aftermarket segment. Mr Keswani said Oetiker has targeted 75 million clamps by 2012. It invested Rs 60 crore in its India plant and will source raw materials, mainly steel, locally. Oetiker established its Indian arm in 2006, while Patalganga is its first manufacturing facility. There will be some more investments for machinery, but I cannot put a figure to it. We expect to break even in two years, said Mr Thomas Meier-Bickel, Head of Sales, Oetiker Europe and Project-in-Charge of Oetiker India. http://www.thehindubusinessline.com/2009/05/19/stories/2009051950970200.htm http://www.financialexpress.com/news/nano-supplier-swiss-co-opens-unit-in-india/462148/ http://in.biz.yahoo.com/090518/50/batldo.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top The Economic Times See similar story in: The Hindu Business Line, Hindustan Times, The Statesman, The Telegraph New Delhi: India's largest tyre maker Apollo Tyres has acquired Dutch tyre maker Vredestein Banden for an undisclosed sum, gaining a foothold in the lucrative European tyre market and raising its annual turnover by a quarter. Vredestein Banden, with an estimated annual revenues of 300 million euro ($403 million), was a subsidiary of Russias largest tyre manufacturer Amtel-Vredestein, which went bankrupt last month. http://www.thehindubusinessline.com/blnus/02181357.htm http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=255030 http://www.telegraphindia.com/1090519/jsp/business/story_10988272.jsp MRF DECLARES LOCKOUT AT TAMIL NADU FACTORY T E Narasimhan Business Standard See similar story in: The Financial Express, The Hindu Business Line, The Statesman, Business Standard, Yahoo India Chennai: Chennai-based tyre giant MRF has declared a lockout at its Arakkonam factory, 70 km from here. The companys response came after workers continued their sit-in strike for the ninth day. The strike has been called by a workers union which claims to have the majoritys support, while the company formally recognises an older union as the one with which it will do business. The company notice said, We have been concluding a long-term settlement only with the trade union (The MRF Arakkonam Workers Welfare Union, AWWU, recognised by us ever since the workmen formed a trade union to represent them. It was in pursuit of such a tradition that we made a settlement with the recognised union in the year 2004. The agreement on the current dispute with AWWU was on May 9, says the company. However, the other union, the MRF United Workers Union (MUWU), affiliated with the United Labour Federation (ULF), insists it has the majority. T V Paramasivam, president, MUWU, has called for an election to prove it and says the management is stalling. The union had petitioned the Madras High Court and the Labour Commissioner and is waiting for their response, said Paramasivam. He added the workers will continue their strike and the union is discussing with legal experts to check the implications if they continue their sit-in strike. Since the management has locked the factory, it will be formally illegal if workers continue to stay inside the factory. The company notice says the strike is illegal and the lockout will take effect from yesterday. The sit-in strike began on May 9, with a demand for reinstatement of around 250 workers dismissed, allegedly for supporting the union and wanting wage revision talks. According to Paramasivam, the Arakkonam facility produces 26,000 radial tyres and 42,000 tubes a day. http://www.business-standard.com/india/news/mrf-declares-lockout-at-tamil-nadu-factory/358559/ http://www.financialexpress.com/news/second-mrf-lockout-now-in-tamil-nadu/462146/ http://www.thehindubusinessline.com/2009/05/19/stories/2009051951010200.htm http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=255041 http://business.rediff.com/report/2009/may/18/mrf-declares-lockout-at-arkonam-tyre-plant.htm http://in.biz.yahoo.com/090518/50/batldm.html MRF LOCKOUT LIKELY TO AFFECT AUTO COS PRODUCTION PTI See this story in: The Hindu Business Line, The Statesman, Asian Age New Delhi: The lockout declared at MRF Ltd's Arkonam plant in Tamil Nadu due to labour unrest is likely to impact production of some of the leading automobile makers, including Honda Motorcycle and Scooter India (HMSI), Bajaj Auto and Maruti Suzuki India (MSI), to whom the tyre major is an original equipment supplier. "Our motorcycle production will be impacted as MRF is 100 per cent original equipment supplier for us,'' HMSI Head (Sales and Marketing), Mr N K Rattan told PTI. While the company has not stopped production yet, he said going forward it is going to be difficult unless supplies are available. "But MRF has told us that they are trying to find an alternative to ensure supplies.'' MSI, which also sources tyre from M RF for some of its products, is assessing the development. "We are ascertaining the situation and impact. Also we are looking at augmenting supplies from other sources,'' an MSI spokesperson said. Two-wheeler maker Bajaj Auto, to which MRF also supplies bike tyres, said since its volumes sourced from the tyre m ajor are small, its production will not be impacted immediately. "For another seven or ten days (there) will not (be any) problem. Hopefully they would resolve by then,'' BAL CEO (Two-wheelers), Mr S Sridhar said. MRF on Monday declared a lockout at its Arkonam plant in Tamil Nadu following labour unrest in the factory. http://www.thehindubusinessline.com/blnus/03181862.htm http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=255028 http://www.asianage.com/presentation/leftnavigation/news/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top Shobha Kannan The Hindu Business Line Kolkata: State Bank of India might account for almost 50 per cent of the total loan bookings made for the small car Nano and is hopeful of disbursing loans worth Rs 900 crore, according to the banks Chief General Manager, Personal Banking, Mr P. Nandakumaran. Seventy per cent of the total bookings (2.03 lakh) announced by Tata Motors Ltd were booked through loans. SBI will be targeting about 50 per cent of the total loan bookings which will work out to about 75,000 applicants, Mr Nandakumaran told Business Line. The bookings for Nano have primarily come from urban and metro centres, Mr Nandakumaran confirmed. Business Line had earlier reported that the Nano had received a lukewarm response from Tier II and Tier III towns, which were originally perceived as the primary market for the car. The bank had offered a Nano booking loan product with a one-time upfront booking fee of Rs 2,999 for the base model (which has an ex-showroom price of Rs 1.2 lakh in Delhi), Rs 3,499 for the intermediate model (Rs 1.40 lakh) and Rs 3,999 (Rs 1.70 lakh) for the high-end model. The booking could be converted into a SBI Nano car loan once a customer gets allocation to the car. The maximum tenure of the loan would be seven years and the rate of interest could range between 11.75 and 12 per cent interest. The margin required would be 15 per cent, which means for a loan of Rs 1 lakh, the customer would have to pay upfront cash of Rs 15,000 while the bank would pay the balance of Rs 85,000. Auto loan share SBIs auto loan portfolio grew by 36 per cent at Rs 9,713 crore (Rs 7,149 crore) in 2008-09. According to the Society of Indian Automobile Manufacturers (SIAM), the market share of the bank in auto loans increased to 12 per cent (10 per cent) this year. Apart from a tie-up with Tata Motors for Nano, the bank has also tied up with Maruti and Hyundai. http://www.thehindubusinessline.com/2009/05/19/stories/2009051951950600.htm SHRIRAM TRANSPORT: SLOW BUT STEADY Shobhana Subramanian & Vishal Chhabria Business Standard Mumbai: At a time when sales of new commercial vehicles (CVs) have been weak, Shriram Transport Finances March 2009 quarter numbers have been reasonably good. The near 27 per cent year-on-year rise in interest income, however, was far lower than the 50-70 per cent growth seen in the first three quarters of 2008-09. About 70-80 per cent of Shirams outstanding loans are accounted for by second-hand trucks and, in the March 2009 quarter too, most of the money was lent for used trucks. Higher interest expenses pushed down the net interest margin to 6.89 per cent and capped the rise in the net interest income to 18 per cent. While gross non performing loans were up by nearly 50 basis points to 2.14 per cent year-on year, the loan book is relatively clean and thats creditable given that most of its customers are individuals. Since money is more easy to access and has become cheaper, life could be easier for Shriram Transport from now on. The company lent more in the March quarter than it did in the December 2008 quarter and its possible it could lend about 20 per cent more this year than it did last year. That could mean an increase in net profits of a compounded 20-22 per cent in the next couple of years, given that the economic environment appears to be getting better. At the current price of Rs 275, the stock trades at just under two times price to estimated 2009-10 adjusted book value. http://www.business-standard.com/india/news/shriram-transportslowsteady/358511/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Ajay Modi Business Standard New Delhi: Driven by rabi crop harvesting and general elections, consumption of petroleum products grew by 4.6 per cent in April, the second highest since September 2008, according to provisional data complied for the month by industry. The average growth during the year 2008-09 stood at 3.5 per cent. The harvesting and transportation of rabi crops like wheat, pulses and oilseeds, along with the activities related to general elections, has generated some additional business during April, said an industry official. While petrol consumption grew by a decent 7.8 per cent, diesel growth was relatively lower at 4.9 per cent. The two products together account for half of petroleum products consumption. However, in both these products the growth came from retail sales, while direct sales to industry declined -- of petrol by 4.9 per cent and diesel by 1.1 per cent. Sales of aviation turbine fuel (ATF) dipped 3.2 per cent in April on account of curtailed flight operations. LPG sales went up by a marginal 1.7 per cent. Industry experts describe the 4.6 per cent consumption growth to be good, given the current circumstances. Indias industrial output dipped 2.3 per cent during March (vis a vis 5.5 per cent growth in March 2008), the latest month for which data is available. Industrial output grew 2.4 per cent in the 2008-09 fiscal, lower than the 8.5 percent growth recorded in 2007-08. Though April data is yet to be compiled, industry-wise data show a revival in core industries like steel and cement, though capital goods manufacturing growth continues to be sluggish. In spite of the general slowdown, a consumption growth rate of 4.6 per cent is significant. This growth rate is expected to improve in the coming months, said Deepak Pareek, analyst at Angel Broking. Globally, most economies are witnessing a dip in consumption. Weak industrial production, high unemployment rates and less travel are the main factors behind the collapse in demand for petroleum products. The Organisation of Petroleum Exporting Countries (Opec) estimates that crude oil demand in 2009 will decline by 1.82 per cent, to 84.03 million barrels/day. http://www.business-standard.com/india/news/petro-consumption-surges-in-april/358555/ OIL PRICES DOWN IN ASIAN TRADE AFP See this story in: The Times of India Singapore: Oil was trading at about 56 dollars a barrel in Asia on Monday amid a deepening recession in Europe and escalating unrest in African crude producer Nigeria. http://timesofindia.indiatimes.com/Business/Oil-prices-down-in- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times Frankfurt: Volkswagen froze talks over a merger that could bail out its majority owner Porsche SE, leaving the luxury carmaker scrambling to reassure investors a deal to unite the two was still alive. http://economictimes.indiatimes.com/News/International-Business/Volkswagen- GM, UAW IN DISPUTE OVER IMPORTS AND PLANT CLOSURES Reuters See this story in: The Economic Times Detroit: Critical concession talks between General Motors Corp. and the United Auto Workers are being overshadowed by a public spat about the automaker's plans to import vehicles from other countries while it closes 16 US factories. http://economictimes.indiatimes.com/News/International- TOYOTA ROLLS OUT NEW PRIUS TO FEND OFF RIVALS AFP See this story in: mint Tokyo: Toyota Motor on Monday rolled out a cheaper, revamped Prius, seeking to boost its flagging sales and maintain its lead in fuel-sipping hybrids in the face of growing competition from rival Honda. Toyota hopes to sell 10,000 of the third-generation Prius cars a month in Japan, where it has a price tag starting from 2.05 million yen ($21,580), about 12% less than the current cheapest model. The Japanese giant, the worlds largest automaker, has sold more than 1.25 million Prius vehicles since its launch in 1997, making it the worlds most popular hybrid, but rivals such as Honda are seeking to challenge its lead. The new price tag narrows the gap with Hondas Insight hybrid, which retails for 1.89 million yen. Toyota will also sell a new version of the second-generation Prius with a price on a par with the Insight, which was the top-selling vehicle in Japan in April. It aims to sell 300,000-400,000 Prius cars in total this year worldwide. Toyota has received pre-launch orders for more than 80,000 third-generation Prius cars, which the company says has a world-beating fuel efficiency of 38km/l. The revamped Prius -- which was unveiled at a Tokyo ceremony by incoming president Akio Toyoda, the grandson of the companys founder -- has solar panels in the roof to power the ventilation system. It has a 1.8-litre petrol engine and Toyotas first electric-powered water pump. Japanese automakers have made strides with hybrid cars, which are powered both by petrol and electricity, because of high oil prices and growing concern about emissions blamed for global warming. Toyota, which lost 436.9 billion yen in the year to March, has much riding on the success of the new model, which is being launched in the mid of a severe global economic downturn. Fuel prices have also fallen since last year. http://www.livemint.com/2009/05/18154424/Toyota-rolls-out-new-Prius-to.html | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RUPEE GAINS 3% TO CLOSE AT 47.90 The Hindu Business Line Mumbai: The rupee appreciated by three per cent or Rs 1.53 on Monday to 47.90 to the dollar, tracking huge gains in the domestic equity markets. The local currency strengthened on expectations that foreign investors will pump in money into the resurgent equity market. The rupee opened higher at 48.60 and soon touched 48.25. At this point there was a brief halt due to some dollar buying. But it later resumed its ascent and closed at 47.90, against Fridays close of 49.43, said currency dealers. Mr Hemant Mishr, Managing Director, Head-Global Markets, India, Standard Chartered Bank said, Over the short term it is a trend reversal for the rupee. Now we may see the rupee in the range of 47.20-47.50. G-Sec market Trading volumes in the government securities market spurted to Rs 17,720 crore on Monday (as against Rs 12,165 crore last Friday) on expectations that the new Government will not only be stable but also unveil progressive economic policies. The yield on the 10-year 6.05 per cent 2019 benchmark security softened by 11 basis points to close at 6.31 per cent YTM, against the previous yield of 6.42 per cent. Intra-day, the yield had touched a low of 6.2 per cent. http://www.thehindubusinessline.com/2009/05/19/stories/2009051951930600.htm
MARKET POLL VAULTS 2,110 POINTS The Hindu Business Line Mumbai: It was an unprecedented happening in Indian stock market history; the benchmark indices hit the upper circuit filter for the first time ever on Monday and, as a stunned market watched on, staged a second upsurge to hit the next circuit filter before trading was halted for the day. Fund managers and broking house heads on Saturday had predicted a 5-10 per cent rise in stocks after the decisive Congress win in the elections. But nothing prepared them for what was in store. In a matter of a few seconds after the opening bell, the Sensex and the Nifty had breached the 15 per cent circuit barrier set by the exchanges, the Sensex gaining 1790 points and the Nifty 532. Trading was halted for two hours till 11.55 a.m. Again, within seconds of resumption of trade at 11.55 a.m., the second circuit breaker had to be applied as the indices went on to breach the 20-per cent level. The Sensex closed at 14,284 with its highest ever single-day gain of 2,110 points or 17.34 per cent, while the Nifty gained 652 or 17.7 per cent, to close at 4323. This was in direct contrast to what happened on May 17, 2004, after the general elections that brought the same Congress-led UPA to power. The market hit the lower circuit filter, and by the end of the day had fallen 564 points to close at 4505 (from its previous close of 5069). (The index based market wide circuit breakers which are revised at the close of every quarter, are triggered when the Sensex or the Nifty moves up or down by 10 per cent, 15 per cent and 20 per cent. They are a risk mitigation measure to prevent unnatural gains or losses from trading). There were some pointers earlier of what was to be on Monday. Market buzz had it that kerb trading over the weekend indicated that the indices would butt the upper circuit level. Also on the Singapore exchange, Nifty Futures were trading up more than 11 per cent at the time of the opening bell here. Buyers wanted to get shares at any price knowing that the market will hit the upper circuit but there were no sellers, there was a queuing up of buyers without sellers which led to this, said Mr Sanjeev Patni, head of institutional equities at Centrum Broking Pvt Ltd. As cash which has been sitting on the sidelines for months now found a sudden release, the crowding of orders at very high buy quotes as a result of there being very few willing sellers, drove up stocks sky high. Ironically, on this dramatic day, nobody really made anything, except for those few fortunate ones whose orders managed to squeeze into the two minutes of trading time, said brokers. To the rest of the people, the gain meant just a number, a sentiment-marker, rather than anything of any real value to them, said a market watcher. Volumes were minuscule because of the two-minute trade that happened, the combined cash and future and options volumes on the exchanges were just a little over Rs 3,103 crore (against over Rs 70,000 crore last Friday). During the truncated trading session only 847 scrips of the usual 2,500 scrips on BSE were traded; 195 hit the upper circuit. On NSE only 207 scrips of 1,300-odd scrips were traded. Among the scrips that were most in demand were BHEL (gained 32.7 per cent), Larsen & Toubro (29.5 per cent), Reliance Industries (20.6 per cent), ICICI Bank (25.37 per cent). RETAIL INVESTORS STRANDED According to the spokesperson of a leading broking firm: No retail investor could take advantage of the upward movement, most of the retail investors went disappointed because trading was closed. It was also a dramatic day of near zero revenue for broking outfits themselves. With such low volumes and hardly any of our trades going through, how do you expect us to make anything on brokerage fees? asks Mr Prashanth Bhansali, Director at Mehta Equities. WHAT IS IN STORE FOR TUESDAY A lot of technical buying for short covering purposes is sure to happen, said brokers. On Monday, since no trading was possible in the truncated session, those who had taken short positions in the F&O segment could not buy stocks to cover their positions. The markets salute to the Congress win has completely taken the speculators by surprise, short sellers are completely squeezed. As far as the retail investors are concerned the time has come for investing but not in this frenzy, said Mr Raamdeo Agrawal, co-founder and director, Motilal Oswal Financial Services. Tomorrow the market will definitely open higher than but settle lower, said Mr Agrawal. It is very difficult to take a call on whether there will be another upper circuit tomorrow, but fundamentally we dont think the market will slip lower than 13,000-14,000 till the Budget, Mr Dinesh Thakkar, Chairman and MD, Angel Broking, said. http://www.thehindubusinessline.com/2009/05/19/stories/2009051952070100.htm
PTI See this story in: The Hindu Business Line New Delhi: Financial services firm, Citi, on Monday retained its projections for India's economic growth at 5.5 per cent for the current fiscal, but it may raise its forecast in future as the incumbent Congress-led alliance would spur investment. "The UPA's clear majority would now spur investment growth as well. While this does lend an upward bias to our growth estimate of 5.5 per cent for FY'10, we maintain our forecast until we have further clarity on policy measures,'' Citi said in a research report. It further said that as the trends in inflation have remained benign, it does expect any significant changes in monetary policy. "Our forecasts continue to factor in a 50 bps easing in policy rates,'' the report added. To boost the economy, the government came out with three stimulus packages -- in December last year, in January and in the interim Budget in February, providing incentives to various sectors. The Reserve Bank also took monetary easing measures by infusing more than Rs 4,00,000 crore since October. However, the Indian economy could manage only 5.3 per cent growth in the third quarter of 2008-09 as industrial growth turned negative in October and December. http://www.thehindubusinessline.com/blnus/14181760.htm Last Financial closing
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