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| INDUSTRY INTERVIEWS/FEATURES Maruti invests Rs. 4,000 cr on Ritz Maruti mulls micro-hybrid tech Maruti evaluates options to continue with M 800 For the first time, made in India cars to be made for Indians Strike at M&Ms Nashik plant called off COMMERCIAL VEHICLES | ALLIED INDUSTRIES MRF strike: Madras HC wants status quo FINANCE & INSURANCE SBI in talks for guarantee sharing in Tata Motors' debenture issue Financial pressure eases on Tata Motors; S&P retains negative rating LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS GM bankruptcy plan eyes quick sale to government Fiat CEO says Opel offer will be 'better than cash' 'VW, Porsche need foreign investor' Nissan hopes to catch up in hybrid vehicle market ECONOMY & FINANCE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TATA MOTORS READIES JLR LOAN REPAYMENT PLAN Reeba Zachariah The Times of India (Web & Print Edition) Mumbai: Tata Motors has almost firmed up its funding plans to repay the approximately $2 billion short-term loan, the deadline for which is a couple of weeks away. India's third largest passenger carmaker is raising $840 million from the domestic market through non-convertible bonds and the balance $1.2 billion would be rolled over for two years. A Tata group source said, "We are confident of putting together the refinancing package for the short-term loan before the June 2 timeline.'' Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Business/Tata-Motors-readies-JLR-loan-repayment-plan/articleshow/4553531.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CARS, SUVs, MUVs Go To Top Kolkata: This year Maruti Suzuki India Ltd, according to its Director (Marketing and Sales), Mr Shuji Oishi, will clock a higher growth than projected for the industry by the Society of Indian Automobile Manufacturers (SIAM). SIAM has projected that the passenger car segment will grow by 3-5 per cent in 2009-10. With the launch of Ritz, a hatchback positioned in the fast-growing upper A2 segment, the company hoped to do better than the industry average, Mr Oishi said here on Tuesday at the launch of the Ritz in Kolkata. He, however, admitted that a double-digit growth was not possible this year. Given the current trend, we can produce the targeted one million cars by 2011, he said. The A2 segment accounts for nearly 72 per cent of the total passenger cars in the country. Around 74,000 units are sold every month in the segment, Mr S.N. Burman, Marutis Commercial Business Head for east zone, said, adding that the company registered a four per cent growth in the segment last fiscal and is currently the market leader with nearly a 60 per cent share. Other Maruti cars in the A2 segment are the A-Star launched in November last year, the Alto, the Wagon-R, the Zen and the Swift. The company sold on an average 8,800 Swift, 11,000 Wagon R and 18,000 Alto cars every month, Mr Burman said. Maruti 800 plans The company had no immediate plans of phasing out the Maruti 800 or the Omni, Mr Oishi said, pointing out that it was working on upgrading the two cars to Bharat Stage 4 emission norms. This would impact the pricing of the cars, he said. Maruti was also in the process of expanding the production capacity for K-series engine to three lakh units a year by 2010-11 at its Gurgaon facility, up from two lakh engines currently. This was part of the Rs 9,000-crore investment plan it was executing, a company official said. MARUTI INVESTS RS. 4,000 CR ON RITZ The Hindu (Web & Print Edition) Kolkata: Even as it is contemplating an upgrade of the Maruti 800, in order to conform to emission standards, the compact car segment (called A2 in industry parlance) has turned out to be the most attractive segment for Maruti Suzuki India which increased its market share in this segment at a time when the industry was flat. It said that a flexible plan had been adopted to produce according to demand. The company commands the largest market share of 58 per cent in the A2 segment which accounts for 72 per cent of its total sales and it gained one percentage point in market share last year. In the current year, it aims at bettering the industry growth rate set by the apex body Society of Indian Automobile Manufacturers (SIAM). Maruti Suzuki is also planning at least three launches by 2011-12, its Director, Marketing and Sales, S. Oishi, said. He was here to launch the companys latest offering, Ritz in the upper A2 segment. S. N. Burman, commercial business head (eastern zone), said that Rs. 4,000 crore had been invested in this respect. He said that as the market grew, the company would produce according to demand and within the A2 production capacity. The Indian market is maturing but we keep our production plans flexible at the back-end, he said. The company sold 7.11 lakh vehicles in the domestic market and exported 53,000 cars in 2007-08, while in 2008-09, it sold 7.22 lakh units. http://www.hindu.com/2009/05/20/stories/2009052055451500.htm MARUTI PLANS TO DOUBLE EXPORTS, EXPAND RURAL PRESENCE Chennai/Kolkata: India's largest car maker Maruti Suzuki, with a turnover of almost Rs 20,500 crore, is hoping to nearly double its exports this fiscal and expand its footprint in the rural belt, officials said on Tuesday. MARUTI MULLS MICRO-HYBRID TECH New Delhi: Full-blown hybrid vehicles may still be a distance from the Indian market, but miniature versions based on start-stop technology which save 8-10 per cent fuel in city driving conditions, may well flood the market soon. After Mahindra and Mahindra's experiment with the micro-hybrid technology on Scorpio and Bolero earlier this year, Maruti Suzuki India Ltd (MSIL) is also studying the possibility of introducing the technology on all of its existing models. Maruti is in early stages of talks with Bosch India, who have the patent for the technology. "Out and out hybrid technology is cost-prohibitive and its introduction will take a long time maybe 15 years or more," said IV Rao, managing executive officer (engineering and R&D), MSIL. "For the time being we are studying the start stop technology and looking at whether we can use it in our existing products he added. Bosch says almost every vehicle manufacturer in the country has evinced interest in the technology, and estimates an 80 per cent market penetration in the country by 2014 the same as in Europe. A feather in the Bosch cap would will be the Tata Nano, which is slated to sport a micro-hybrid avataar by early 2011. "The start-stop ecotechnology has been developed by us keeping in mind the Indian conditions and given the evolution of hybrid technology worldwide it remains the perfect model for India in the near future," said Matthiks Wunderlich, regional president, start up motors and generators division, Bosch India. Japanese auto major Honda Siel Cars India launched the first hybird car Civic hybrid in the country late last year. Tata Motors is readying an electric Indica for a commercial launch later this year. The customer response has been very good, said Pawan Goenka, president (automotive sector), M&M, about the Scorpio micro-hybrid. Within the next year or so we would be covering most of our products including the Xylo (with micro-hybrid technology). MARUTI TO BRING R&D TALENT FROM DETROIT Anshul Dhamija The Economic Times (Web Edition) Bangalore: Indias largest car manufacturer, Maruti Suzuki, is all set to drive-in R&D talent from the worlds automobile capital, Detroit. The company has a mandate to scale up its R&D strength in the country from 700 to 1000.
MARUTI EVALUATES OPTIONS TO CONTINUE WITH M 800 PTI See this story in: The Hindu Business Line (Web Edition), The Tribune (Web Edition) Kolkata: Maruti Suzuki India Ltd is evaluating options of continuing with its first model Maruti 800 as also van model Omni post March 2010 when Euro IV emission norms would be in force in major cities. Technically, we can upgrade the M 800 and Van models to meet latest emission norms, but it would be a commercial decision whether the models would be continued or not, Mr S N Burman, Head - Commercial Business, Maruti said. As marketing professionals, we want that M 800 continues as it is an important model for our numbers. We are working on this subject. But, I don't know about its continuance, Mr Shuji Oishi, Director (Marketing & Sales), Maruti said on the sidelines of the launch of Ritz here. Mr Burman said the final call on the subject would be taken considering whether the additional cost would be viable to meet the latest emission norms to convert these models. He, however, ruled out the possibility of continuing with M 800 was in response to Tata's Nano. http://www.thehindubusinessline.com/blnus/02191806.htm http://www.tribuneindia.com/2009/20090520/biz.htm#7 FOR THE FIRST TIME, MADE IN INDIA CARS TO BE MADE FOR INDIANS Shally Seth Mint (Web & Print Edition) Mumbai: Indian and foreign car makers sold 1,551,880 cars, and utility and multi-purpose vehicles in India last year, but none of these was made for Indians. Car makers design their vehicles using data on physical attributes of users. Such information, called anthropometric data, includes details such as height, weight and key physical specifications of people who are likely to drive or be driven around in the car. Interestingly, such data has never been available for India. Until now. The Pune-based Automotive Research Association of India, or Arai, an industrial research organization established by auto companies and the government, has started work on a study to come up with India-specific anthropometric data. The results of the study are expected to be in by March 2010. Also See Vital Statistics In the absence of this data, which has to be collected on the basis of a study of the Indian population, car makers such as Maruti Suzuki India Ltd, Mahindra and Mahindra Ltd and Tata Motors Ltd rely on mannequins (dummies) based on US, Japanese, European or Korean specifications. And, based on their own understanding of the Indian body, they mix and match these dimensions till they come up with a dummy that looks Indian in terms of size and shape. C.V. Raman, the chief general manager for engineering, research, design, and development at Maruti Suzuki, Indias largest car maker, said his company uses a combination of US and Japanese data to design dummies. Mahindra and Mahindra extrapolated standards from SAE International, a global association of engineers from the auto, aerospace and truck industries, according to the companys senior vice-president for product development, Bidyabijay Bhaumik. The importance of anthropometric data cant be underplayed, said one expert. For instance, it could determine the height of the brake pedal or the height of the seat. Many of the newer cars do allow users to adjust these, but within a band. Anthropometric data is a scientific way of determining dimensions for the height of the seat, legroom, headroom, foot room and pedal size, and can be pivotal in reducing fatigue and enhancing efficiency, said Pradyumna Vyas, director at Ahmedabad-based National Institute of Design. He added that the use of an American dimension of 6ft and 75kg will not befit the Indian requirement. Then theres safety, which Vyas said the Indian data would enhance. Anthropometric data, after all, decides the dimensions of crash test dummies. Even the Indian study wont throw up dimensions that fit all Indians, but it will make sure around 90% of Indians can operate the car comfortably, according to Vyas. Arai director Shrikant R. Marathe said his organization will measure around 5,000 people from across India for the study, titled Anthropometric Data Measurement for Indian Driving Population. Car makers are looking forward to the completion of the study. With the help of such data, one can pay more attention to very simple things such as the positioning of a gear shift lever, said Marutis Raman. While companies operating in India have done a fine job thus far, the extensive India-specific Arai study will now provide greater exactitude, added Tata Motors spokesperson Debasis Ray. Part of that exactitude will come from the way Arai plans to capture datausing 3-D body scanners that can gather information on around 150 parameters in a few seconds. Arai plans to collate and analyse the data with the assistance of statistics specialists in India and elsewhere. Car makers can integrate the data with their own computer-aided design software, said Marathe. He added that the entire study will cost around Rs3 crore. Arai is yet to work out the pricing of the study, but the amount car makers pay will depend on the details they seek, added Marathe. Companies, especially those that sell their cars in overseas markets, would do well to use the data as a starting point, said Mahindra and Mahindras Bhaumik. He wrote in an email that his company validates designs through user surveys and added that for companies that, like Mahindra and Mahindra, have a multi-market strategy, it was important to take care of ergonomic requirements in all markets. While the study seeks to find India-specific anthropometric data, it should focus on gathering data that is traditionally ignored in some other countries, said an automobile expert. According to Hormazd Sorabjee, editor, Autocar India, most car makers overlook the comfort of passengers because a lot of people in Europe and the US prefer to do their own driving. The study could focus on this, he added. http://www.livemint.com/2009/05/20002201/For-the-first-time-made-in-In.html?h=A1 Rebecca Rassendren Asian Age (Web & Print Edition) Bengaluru: Indian carmakers expect the small car segment to help revive an otherwise flagging automobile sector, trampled by poor consumer spending and lack of finance. The mini car segment currently forms about 75 per cent of the entire Indian automobile industry. "The demand for compact cars has been stable, even in these challenging times," general manager and commercial business head (south) for Maruti Suzuki India Mr Manohar Bhat says. Consumers, he says, are asking for 'true value for money' vehicles - cars that are not only small and affordable but are also efficient and easy to maintain. Maruti Suzuki recently launched a new small car, Ritz. The firm's compact car segment also includes the Alto, Swift, Wagon R, A-star, and Zen Estilo. In fiscal year 2009, the firm sold 5,11,396 units in the segment in India, up from 4,99,280 units the previous year. "The mini car segment is the only segment that is witnessing growth which is higher than that of the two wheeler market. It will play a key role in reviving the industry," says automobile analyst with Angel Broking Ms Vaishali Jagoo. Apart from Maruti, Hyundai Motors India has also seen good success with their mini cars - the Hyundai i10, Hyundai Santro and the Hyundai i20. The i10, launched in October 2007, has clocked volumes of around 10,000 units per month, on an average, every month, a company spokesperson informs. GM's small car Chevrolet Spark sold 31, 600 units in 2008, more than double the previous year's numbers. http://www.asianage.com/presentation/leftnavigation/news/business/ Surajeet Das Gupta Business Standard (Web & Print Edition) New Delhi: Hyundai Motors India Ltd, the countrys second-largest car maker, signalled an early revival of demand by resuming the third shift at one of its two factories near Chennai from July 10, in anticipation of better sales in the remaining months of calendar 2009. The decision will lead to an addition of 250 to 300 cars a day, increasing daily production to around 1,300 vehicles. Depending on sales in the coming months, a decision will be taken later on whether to resume the third shift in its second unit. The third shift was discontinued at the end of last year, as the global slowdown caused both domestic and overseas sales to shrink. The company also did not extend contracts to over 2,000 apprentices who were being trained before induction into the company. Later on, around 500 of them were hired again. In anticipation of better sales and resumption of the third shift, the company is now preparing to rehire more apprentices. Speaking to Business Standard, Hyundai Motors President, Ashok Jha, said: We expect demand to increase and there is backlog for some of our models. We also have a backlog of export orders which will be met by increasing production. Hyundai earlier aimed to sell around 580,000 vehicles in this calendar year (exports and domestic sales) but now hopes to raise the target to 630,000. It expects improving exports and higher domestic sales, following an anticipated fall in interest rates on consumer loans once the new central government takes charge. Asked if the company, a wholly-owned subsidiary of the Korean major, is looking at improving this years target, Jha said, Ideally, wed like to do 630,000 to 640,000, which is the capacity of the two plants together. Jha said the company was well on target to hit the 280,000 mark in the domestic market for calendar 2009. The export market has picked up significantly after European governments started offering financial incentives to consumers to change their old cars. The first few months, however, saw the export target fall short by 6 to 7 per cent. On the possibility of shifting production of the i20 hatchback to Europe following some weeks of unrest at its plant near Chennai, he said they were still to decide on that. Response to the car had been so overwhelming in Europe, he said, that producing the model nearer its market made sense. On the original decision of establishing the Indian plants as an export hub for the i20, Jha said Hyundai had expected India and the European Union to sign a free trade agreement (FTA). This FTA would have saved Hyundai 5-6 per cent on Customs duty. Now that the FTA is some time away, Hyundai reckons it can save the Customs duty by shifting production to Europe. The key negative, however, is the cheaper cost of labour in India. http://www.business-standard.com/india/news/hyundai-to-resume-third-shift/358664/ STRIKE AT M&MS NASHIK PLANT CALLED OFF Shweta Bhanot, Sanjay Jog The Financial Express (Web & Print Edition) See similar story in: The Hindu Business Line (Web & Print Edition), The Indian Express (Web Edition) Mumbai: After 14 days, finally the striking workers at the Mahindra & Mahindra's (M&M) plant at Nashik resumed their duties from Monday noon and started production. Even though the company sources are silent on the loss incurred by it due to the 14-day strike, employees and vendors revealed that it will be of the order of Rs 600 crore (assuming the daily loss of Rs 45 crore following the stoppage of production of 550-600 vehicles at the plant). A company release said "Mahindra & Mahindra Employees Union, Nashik has withdrawn its tool down strike with effect from the 2nd shift of May 18, 2009. Following the withdrawal of this strike, production has resumed in the Nashik plant of Mahindra & Mahindra and normalcy restored." Sources at the union told FE that the production will normalise within two days against the timeline of seven days given by the company management. Nearly 170 vendors around Nashik, most of them had to close down their shops or run under tremendous pressure, hoped that the situation will become normal soon due to the resumption of production. Even as the company release was silent on revising the wage agreement, the union sources said the management and the union will negotiate the concerned deal within a month. It must be mentioned here that the union, which was reconstitued in April, had already rejected the wage revision deal finalised by its previous body in February. The February deal envisaged a wage hike of Rs 4,000. The newly constituted union had argued that it was not acceptable to it and thus be revised. However, the company management did not respond to the union which further added fuel to the fire. M &M Employees Union general secretary Dhaval Chavan said " The decision to call off the strike was taken at a meeting on Monday. The management offered to carry out an inquiry by a third party against the union president Madhav Dhatrak. The union will suggest the name of the investigaor." As reported by FE last week, the Maharashtra Labour minister Nawab Malik during his meeting with the company management and union had moved an idea of probe by a retired judge to make it more impartial. "The management has accepted our suggestion and it was decided that the inquiry panel's decision will be binding on the management and also on Dhatrak," Chavan said. The union had gone... on strike from the May 4 after Dhatrak was suspended due to his alleged misbehaviour with the security personnel. The union was quite agitated over the mangement's alleged decision to not give Dhatrak opportunity for defence, and resorted to strike.... http://www.financialexpress.com/news/strike-at-m&ms-nashik-plant-called-off/462681/2 http://www.thehindubusinessline.com/blnus/02191653.htm http://www.indianexpress.com/news/strike-at-m&ms-nashik-plant-called-off/462349/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2/3 WHEELERS Go To Top T. Murrali The Hindu Business Line See similar story in: The Pioneer, The Times of India Chennai: Despite the Madras High Court giving the go ahead to TVS Motor Company for manufacturing and marketing the 125-cc Flame, whose use of the twin spark plug technology resulted in a court battle with Bajaj, the company is not keen on manufacturing the model. Passing orders on Monday, a Division Bench comprising Mr Justice S.J. Mukhopadhaya and Mr Justice F.M. Ibrahim Kalifulla observed that the facts disclose a mass of difference between the two types (Flame and XCD 125) of vehicles manufactured by TVS and Bajaj. These two models are distinctly identifiable and there was absolutely no scope for injunction. Indications from Bajaj Auto are that the company will go for an appeal in the Supreme Court. Mr H.S. Goindi, President (Marketing), TVS Motor Company, told Business Line that in spite of the company winning the infringement case, it would not revive and introduce Flame with two spark plugs in the near future. However, TVS Motor plans to launch a new variant of Flame likely to be named Flame Plus next month. This will be an improvised version of the existing model with minor changes. The company will launch the Apache 180 RTR soon, he said. TVS unveiled the 125-cc Flame in August 2007, but soon after that Bajaj Auto stated that it would sue TVS Motor for patent breach over the use of twin spark plugs in Flame, a technology that Bajaj claimed was its own. The very next day TVS said it would slap a Rs 250-crore libel suit against Bajaj Auto if the company did not withdraw the allegation and apologise. The following day Bajaj threatened TVS with maximum damage. TVS refuted Bajajs claims, stating that its controlled combustion variable timing intelligent technology was different from Bajajs DTSi (Digital Twin Spark Ignition), and launched Flame in December 2007. Later the Madras High Court restrained TVS from booking, distributing or selling Flame. Based on the injunction issued by the Madras High Court against the use of the twin spark plug engine, TVS Motor began selling Flame with a single spark plug engine. Though company officials declined to put a number to the total sales of Flame since launch, sources among TVS Motors vendors say the company could have sold around 50,000 units. Most the dealers said they sold few hundreds between March and August 2008 and the numbers dropped to single digit later. http://www.thehindubusinessline.com/2009/05/20/stories/2009052051570200.htm http://www.dailypioneer.com/177233/HCs-green-signal-to-TVS-Flame.html http://timesofindia.indiatimes.com/Business/TVS-free-to-manufacture-and-sell-Flame/articleshow/4553523.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ALLIED INDUSTRY Go To Top George Joseph Business Standard Kochi: The huge volumes of natural rubber imports have failed to push down rubber prices. This would have given a respite to the rubber consumers as prices continue to remain high. Indias rubber imports suddenly started rising and this years imports are expected to double to 160,000 tonnes as international prices have remained lower than Indian prices. However, because of a lean season in Kerala, the biggest rubber producing state, and with crude oil prices moving up, synthetic rubber prices have gone up. Hence, domestic prices of natural rubber have not fallen despite the spurt in imports. Prices were hovering around Rs 102 per kg a couple of weeks ago and it is Rs 96 presently. As the global market for natural rubber (NR) is more lucrative for the local rubber-based industries, especially to tyre manufacturers, rubber imports are rising sharply. The latest estimates of the Rubber Board revealed that 8,175 tonnes were imported this April. This is almost double the imports of 4,391 tonnes seen during April, 2008. The most significant factor responsible for the doubling of imports is the price. On an average the local price was higher by Rs 20 per kg in April though the difference has shrunk to Rs 12-13 recently. The Indian market is quoting the highest price tag and this caused a shift towards duty-free imports. During the first four months of the present year (January - April), the total imports were 23,972 tonnes as against 21,959 tonnes during the corresponding period of 2008. From March onwards, imports were on the rise. In March this year, 7,404 tonnes were imported as against 4,278 tonnes during previous March. It was from March onwards that the Indian market had been appreciating, leading to the sharp rise in imports. According to sources from the tyre industry, imports would rise sharply in May and it might even cross the 15,000-tonne mark. The per kg cost of the imported rubber on the factory floor is Rs 90 per kg at the present international market price while the same cost is Rs 106 when rubber is purchased from local markets. This price advantage will attract more rubber to India. The average per month import during 2008-09 was 6,660 tonnes. This will double in the present financial year leading to a total annual import of 160,000 tonne. Some 79,927 tonnes were the total imports in 2008-09. The local traders expect some relief from this situation by June when monsoons begin and production would be more active. The present global market scenario definitely indicates a much more vibrant import of NR in the coming months. Meanwhile, the setback on export was pathetic in April. As per estimates, only 653 tonnes were exported this April as against 3,690 tonnes during the previous April. http://www.business-standard.com/india/news/rubber-imports-give-no-respite-to-consumers/358619/ MRF STRIKE: MADRAS HC WANTS STATUS QUO T E Narasimhan Business Standard Chennai: The Madras High Court directed two unions and the MRF management to maintain a status quo, subject to the management taking a decision on the wage settlement agreement of May 9 this year. The HC was hearing a petition filed by the MRF United Workers Union (MUWU), asking for an interim injunction restraining the management from bringing into effect the so-called settlement of May 9, according to the unions council. http://www.business-standard.com/india/news/mrf-strike-madras-hc-wants-status-quo/358651/ MICHELINS TYRE CENTRE
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| TATA MOTORS TAPS LIC TO RAISE RS 1,250 CRORE Gaurav Pai & Lijee Philip The Economic Times Mumbai: Tata Motors on Tuesday raised Rs 1,250 crore by selling non-convertible debentures (NCDs) to Life Insurance Corporation of India (LIC). The NCDs bear a coupon of 10%, and have a maturity of seven years. The debt is part of a larger money raising programme to refinance the bridge loan taken at the time of the Jaguar Land Rover acquisition. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" SBI IN TALKS FOR GUARANTEE SHARING IN TATA MOTORS' DEBENTURE ISSUE Business Standard Mumbai: State Bank of India is negotiating with other commercial banks to share the onus of giving guarantees to Tata Motors Rs 4,200 crore debenture issue. The Tata group company will use these proceeds to pay the debt it took to acquire Jaguar Land Rover (JLR) in Britain. ICRA, the rating agency, has assigned one of LAAA (Structured Obligation), indicating the lowest level of credit risk. The rating to these debentures is based on the strength of the unconditional and irrevocable guarantee by State Bank of India (SBI) for the payment of all dues. Merchant banking sources said No one bank can give a guarantee for the entire issue as a matter of prudence. SBI is discussing with other banks for sharing of risks in issuing guarantees. TML plans to raise the principal amount of Rs 4,200 crore in four tranches. The first tranche will consist of debentures worth Rs 800 crore with 23-months tenure (maturity in March 2011), the second for Rs 350 crore with a tenure of 47 months (maturity in March 2013). A large chunk will be raised through debentures which have long tenure. In the third tranche, it will raise Rs 1,850 crore through debentures which will mature in March 2014, and then issue debentures worth Rs 1,200 crore maturing in March 2016. Under the structured payment mechanism, SBI assures timely payment of the dues to investors. The interest will be paid quarterly, while the principal will be paid in one go (bullet payment). The debentures carry low interest during the tenure, with the yield being achieved though a redemption premium payable on the maturity of each tranche. The full, unconditional and irrevocable guarantee from SBI will be sufficient to cover all issuer obligations that may arise at any point of time, ICRA said. The guarantee amount required is stipulated at Rs 4,900 crore at the beginning of the transaction and shall come down over the tenure with the amortisation of tranches. TML will open a no-lien account with the designated bank. And will deposit the due amount into this account at least eight days prior to any interest/principal payout date. The debenture trustee will then directly fund the investor accounts on the scheduled payout date. FINANCIAL PRESSURE EASES ON TATA MOTORS; S&P RETAINS NEGATIVE RATING PTI See this story in: The Hindu Business Line, Daily News & Analysis , The Indian Express New Delhi: Financial pressure on Tata Motors has eased due to improvement in the automobile market and inflow of funds from bookings of its small-car Nano, said global agency Standard and Poor's while retaining the company's rating on creditwatch with ne gative implications. Noting that the company took measures to manage short-term debts, the agency's credit analyst Mr Manuel Guerena said, This, along with improvement in the Indian automobile market conditions in 2009, has somewhat eased liquidity pressure at Tata Motors. The agency, however, has continued to keep the long-term corporate debt and unsecured debt of Tata Motors on creditwatch with negative implications (possibility of a downgrade). There was no change in rating assigned to this company, which is B (plus) and is on credit watch with negative implications,'' Mr Guerena said, adding the agency updated its views on Tata Motors beacuse of the USD two-billion bridge loan which becomes d ue for repayment on June 2 this year. The rating B (plus) suggests that adverse business, financial and economic conditions can impair the ability of the company to meet its financial commitments. http://www.thehindubusinessline.com/blnus/02191453.htm http://www.dnaindia.com/report.asp?newsid=1257137 http://www.indianexpress.com/news/financial-pressure-eases-on-tata-motors/462413/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top AFP See this story in: The Times of India Singapore: Oil prices fell in volatile Asian trade on Tuesday after soaring past the $59 mark overnight, dealers said. New York's main futures contract, light sweet crude for delivery in June, was down five cents to $58.98 a barrel in morning trade. The June contract expires later Tuesday. http://timesofindia.indiatimes.com/Business/Oil-prices-dip-below-59-in-Asian-trade/articleshow/4550094.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times President Barack Obama proposed on Tuesday the first US regulation of auto emissions in a bid to reduce climate-warming greenhouse gasses and lower dependence on foreign oil. GM BANKRUPTCY PLAN EYES QUICK SALE TO GOVERNMENT Reuters See this story in: The Economic Times, The Indian Express, Asian Age New York: If General Motors Corp files for bankruptcy, as widely expected, plans include a quick sale of the automaker's healthy assets to a new company owned by the US government, a source familiar with the situation said on Tuesday. GM has about $6 billion of secured debt, including a secured revolving credit and bank debt. http://www.indianexpress.com/news/general-motors-may-go-bankrupt-in-60-days/462350/4 FIAT CEO SAYS OPEL OFFER WILL BE 'BETTER THAN CASH' Bloomberg See this story in: The Economic Times London: Fiat SpA Chief Executive Officer Sergio Marchionne said his companys takeover offer for General Motors Corps Opel unit will include assets that are better than cash. 'VW, PORSCHE NEED FOREIGN INVESTOR' Bloomberg See this story in: The Economic Times Berlin: Volkswagen AG, Europes biggest carmaker, and Porsche SE should sell a stake in the company resulting from a merger to a foreign investor, said Germanys Lower Saxony, the VW shareholder with veto power. NISSAN HOPES TO CATCH UP IN HYBRID VEHICLE MARKET AP See this story in: Hindustan Times Tokyo: Hybrid vehicle laggard Nissan hopes to catch up with its Japanese rivals after launching the company's own green car technology next year, an executive said on Tuesday. Nissan Motor Co, Japan's No 3 automaker, has fallen behind its bigger rivals _ Toyota Motor Corp. and Honda Motor Co. _ in the increasingly competitive market for gas-electric hybrid vehicles. Toyota produces the Prius, the world's top selling hybrid, whose latest or third-generation model, went on sale Monday, offering better mileage and more size. Toyota plans to sell 10,000 in Japan a month, as well as an additional 2,000 of a cheaper old-style Prius model. The Prius is competing against Honda's smaller but cheaper Insight hybrid, which is also proving popular. Nissan, allied with Renault SA of France, still does not have models on sale with its own hybrid system, although it sells a hybrid Altima in the US with Toyota's hybrid system. It is promising a model using its own hybrid technology for the US and Japanese markets next year. Chief Operating Officer Toshiyuki Shiga acknowledged he is often asked how Nissan hopes to compete in hybrids. "It is not that we are not doing hybrids," he told reporters at Nissan's Tokyo headquarters. "We do accept with humility the views we are hearing from both outside and within that we lack a hybrid." Shiga defended Nissan's plans to raise mileage for standard gasoline engine and diesel vehicles and work on network technology to reduce traffic jams and fight global warming. Hybrids and zero-emission vehicles, including electric cars and fuel-cell vehicles, are important but the other measures are also vital, he said. Shiga was speaking after showing a new van, which has a gasoline engine but meets Japanese government standards for tax reductions for green vehicles. The NV200 Vanette goes on sale this month in Japan, is planned for Europe later this year and next year for China. Government incentives for ecological cars, also in the works in the US and elsewhere, are likely to boost hybrid sales when the world's major auto markets are languishing amid an economic slowdown and credit crunch. "We are confident of our ecological strategy," Shiga said. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Hindu Business Line Mumbai: The rupee gained marginally by around 12 paise against the dollar on Tuesday, in choppy trade, said dealers. The rupee opened at 47.50 and strengthened to touch an intra-day high of 49.26. It weakened to touch an intra-day low of 47.94 before closing at 47.78, against the previous close of 47.90. The rupee opened with gains on hopes that the rally in the domestic equity markets would continue, said a dealer with a public sector bank. However, it lost most of the gains as the rupee tracked the domestic equity indices. Nationalised banks were seen buying dollars on behalf of the Reserve Bank of India to avoid a steep appreciation in the rupee, added the dealer. In the overseas markets, the dollar gained against the pound but weakened against the sterling. In the forward premia market, the six-month premium closed at 2.51 per cent and the one-year closed at 2.14 per cent. http://www.thehindubusinessline.com/2009/05/20/stories/2009052051420601.htm AFTER THE STORM, SENSEX SHOWS VOLATILITY PTI See this story in: The Times of India Mumbai: In volatile trading, the market failed to retain early gains as the Bombay Stock Exchange benchmark Sensex on Tuesday fell from the day's high and ended with a moderate gain of close to 18 points on profit-booking. PM FOR PUSHING REFORMS, JOBS, INVESTMENT See this story in: The Pioneer New Delhi: Set to begin a new term in office, Prime Minister Manmohan Singh on Tuesday spoke of the need for reforms and reverse the slowing down of investment and employment generation caused by global economic slowdown. http://www.dailypioneer.com/177246/PM-for-pushing-reforms-jobs-investment.html Last Financial closing
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