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| INDUSTRY INTERVIEWS/FEATURES The art of conjuring a coupe from a saloon Apollo acquires Vredestein Banden BV CARS, SUVs, MUVs Maruti Suzuki looks to beat SIAM auto industry growth projection... Maruti expects to cross 3-5% growth this year COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY TVS Motor allowed to produce Flame Maharashtra Scooters loss at rs.1.43 cr COMPONENTS A Challenging outlook for Bharat Forge | ALLIED INDUSTRIES FINANCE & INSURANCE Mutual funds cut Tata Motors holding in April: Data Bajaj Finserv posts Rs 107-cr net in Q4 Bajaj Auto Finance Q4 PAT rises three-fold LUBRICANTS & ALTERNATIVE FUELS Oil scales new six-month high at $62 a barrel INTERNATIONAL NEWS GM confirms Fiat, Magna, RHJ Int'l as Opel bidders Magna's bid for Opel preferred Fiat confirms bid for Opel, Vauxhall: Spokesman ECONOMY & FINANCE Sensex snaps 3-day winning streak Inflation projected at 0.1% in 2009-10: CMIE
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| INDUSTRY Go To Top Lijee Philip & Sachin Dave The Economic Times (Web & Print Edition) Mumbai: Tata Motors is understood to have begun refunding dealers across the country for unsold Nano booking forms. Caught up in the Nano excitement, each dealer had picked up between 2,000 and 10,000 application forms, but managed to sell not more than 30-35% of it, top dealers said. Dealers bought each booking form for Rs 250 and sold it at a premium of around Rs 300 to customers. Tata Motors received over 2.03 lakh bookings for its Rs 1 lakh car Nano, garnering nearly Rs 2,500 crore. The company sold a total of 6.10 lakh forms. Although initial industry expectations were around 5 lakh bookings, company officials maintain that the company has garnered a good response at a time when the car market is struggling for volumes. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/Tata-Motors-to-refund-dealers-over-unsold-Nano-forms/articleshow/4558157.cms
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| INTERVIEWS/FEATURES Go To Top There's just something about two banks of cylinders set at an angle to each other that simply makes every auto enthusiast's heart beat faster. Whether it be a Vtwin, V4 or V5 in a motorcycle or V6 and higher under a car's hood - there's this automatic liking towards the vehicle without even having seen it in the flesh. That's about what happened when Honda decided yet again that they would plonk a 3.5 litre V6 into its latest-gen Accord. And when we heard that it was bound for India, you can imagine the excitement within the ZigWheels staff. The new generation Accord made its way to India some time last year and has been pretty well received since. Initially people had a little bit of an issue accepting the radically different design approach that the Japanese car had received, but things smoothened out and the more you look at the Accord, the more you fall in love with its robust, macho lines. While all of that remains unchanged on the Accord V6, the biggest give away that the car in front of you has the monster V6 instead of the smaller inline 4 are the dual exhausts peeking out the back. As on the outside, there's really nothing much different inside the Accord 3.5 litre V6's cabin. What really strikes you though when you step in is the extraordinary levels of quality that Honda has managed to achieve with the car. The plastics are spot on and compliment the leather trim extremely well. While the rear bench itself offers high levels of comfort and space, there's really not much for the back benchers to play around with except for dedicated air con controls. It may be good looking, stylish and comfortable. But what this Accord is all about is that monstrous powerplant sitting under the hood. Turn the ignition key and that distinct V6 rumble is barely audible at idle revs. Tease the accelerator pedal though, and the music from the engine bay makes your hair stand on end as you anticipate the full potential of the Japanese V6 technomarvel. Rev up to 6200rpm and the Accord's V6 will unleash all of its 275PS of power. Maximum torque kicks in at 5000rpm - all of 339Nm. V6 engines are a tough case when it comes to getting the vibrations under control owing to their natural unbalance with three cylinders in each bank, but Honda seem to have done a great job there. i-VTEC makes this potent mill even more driveable. And then Honda also has what they call VCM or Variable Cylinder Management. When accelerating, VCM makes sure all six cylinder fire, enabling the use of the engines full power when required most. As cruising speeds approach, the system shuts down the cylinders on extreme ends of the two banks so only four of the six cylinders are burning fuel, and hence saving it. At cruise speeds, it shuts off one entire bank, effectively making it an inline-3 engine and saving fuel even further. The performance appeal of the car could have been enhanced with a 6-speed automatic gearbox - and that is somewhat of a let down with its 5-speed (slick shifting nevertheless) box. The 2.4 litre Honda Accord is priced just under Rs 20 lakh (ex showroom, Mumbai) and considering the difference in power - 180 PS against the V6's 275 PS, the V6 should ideally be the choice for the performance hungry individual - after all almost a 100PS for Rs 5 lakh more isn't such a bad deal! So if you're looking for a big family saloon with enough room to accommodate the family and enough oomph to get you even closer to motoring nirvana, the Accord is not only a great car - you're also getting your money's worth of Honda reliability and a whole lot more piece of mind. The Accord V6 gets two thumbs up from us! Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Adil Jal Darukhanawala The Economic Times, Zigwheels The Yeti which was unveiled to the world media at the Geneva Motor Show this March, is Skoda's fifth model in its portfolio and the first production models began rolling off the assembly line at Skoda's Kvasiny plant in the Czech Republic. The Yeti is being offered with both petrol and diesel propulsion and one expects the India versions to feature the 2.0-litre TDI for sure. However what will determine the success for this vehicle is its ability to tackle the rough with the smooth and here its 180mm ground clearance coupled to its ideal angles of arrival and departure will make it a mean performer on our terrain. With its nimble car-like controls and handling ability plus its most versatile interior packed with its VarioFlex seating system, the Yeti could be the ideal single vehicle for a family for both work and play. In fact with the rear seats folded flat, the Yeti offers a massive 1760-litres of luggage space. One of the key aspects of the 4x4 versions of the Yeti will be a feature mostly found on very high SUVs. I am referring to the downhill assistant, a feature which enables drivers to tackle steep slopes, especially when motoring downhill, in complete control without working up a sweat. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" THE ART OF CONJURING A COUPE FROM A SALOON The Economic Times, Zigwheels There is something essentially sensuous and emotional about a coupe. More so a pillarless coupe as espoused earlier by the American Big Three and latterly by Mercedes-Benz and BMW. Factor in the practical appeal of a coupe on an existing saloon and suddenly you have something both beautiful yet one which can be made to work everyday as both a means of practical transport yet distinctive enough to make its driver stand out. To talk about the magic and the practical appeal of a coupe on a saloon platform as a high profile brand extension of the model line, we spoke to a person who not only makes the connect and the distinction between a coupe and a saloon but is also directly involved in the design and turnout of both such forms of a modern automobile. He is none other than Gorden Wagener, head of Mercedes-Benz Design and here's what he had to say when we engaged him on not just the beautifully turned out E-class coupe but also asked him to shed some insights on design within Mercedes-Benz.
What are the particular challenges that a coup poses for the designers at Mercedes-Benz? To what extent is a different approach required?
How do you design a coup without making the saloon look bad? Mercedes-Benz has created numerous legendary coups doesn't such a "heritage make the designer nervous? If anything, it's a great challenge. After all, every Mercedes-Benz coup should be something absolutely special - as regards its engineering and, above all, as regards its styling. My team and approach this task with great enthusiasm.
Design always continues to evolve - just like society. I find this fascinating, because we designers help to shape the future. For my team and me, each new day begins with a journey into the future and with the ideas we are planning for the years to come. This is what drives me every day. Designing a Mercedes is always something very special. For me, Mercedes design is a story of pure excitement - past, present and future.
For us, it means that we appeal to people directly through the senses and not just through rationality. We therefore make automobiles that exhibit all the highly prized attributes that are typical of Mercedes while, at the same time, displaying a dash of audacity, a breath of irrationality. Nevertheless, a Mercedes never denies that it is a Mercedes. Our intention is to generate enthusiasm - and pride of ownership.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Adil Jal Darukhanawala The Economic Times, Zigwheels After getting a patent for its ExhausTEC invention (used on many of its motorcycles including the highly successful Pulsar range), Bajaj Auto has been granted a patent for its SNS shock absorber technology. Going under the title "A Multi Spring Vehicle Shock Absorber" in its patent application, the SNS system is a highly innovative yet simple approach to doing the business in small capacity commuter motorcycles in terms of both load carrying as well as providing good control via proper damping. This simple yet highly effective suspension solution first appeared in July 2005 on the firm's Boxer CT100 and thereafter it has become commonfitment on other Bajaj bikes like the Discover, XCD, Platina and the Boxer-S. No less than 5 million Bajaj bikes equipped with SNS shock absorbers have been sold to date. They say that imitation is the best form of flattery, and the SNS is being flagrantly copied by low cost Chinese bike makers, especially brands like NeXus sold in Nigeria and Nebula in Kenya and Uganda. The company has fought its case on these two counts in China and it has already applied for additional patents for its SNS technology in other nations. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" APOLLO ACQUIRES VREDESTEIN BANDEN BV Vikram Gour The Economic Times, Zigwheels Apollo Tyres Ltd has formally concluded the process of acquisition of the premium Dutch tyre manufacturer Vredestein Banden BV (VBBV). Approvals from the Judge of the Dutch Courts have been granted and now Apollo Tyres owns 100 per cent of VBBV which is based out of the Netherlands. As of April 29 2009, parent company Amtel-Vredestein NV was declared bankrupt and Apollo Tyres stepped in to negotiate a deal to gain control. Vredestein enjoys a great reputation in Europe, and is known for making high speed, high performance tyres for passenger cars. For Apollo Tyres, this acquisition spells success, as the company makes further inroads in the European market. "This is a strategic alliance for us and will bolster Apollo's plans for its European customers," comments Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd. "The fit between the two companies spans the entire spectrum of R&D, products and people to manufacturing and markets. It is a synergistic match and our aim is to increase Vredestein's global value in the coming years." Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top K. Giriprakash The Hindu Business Line (Web & Print Edition) Bangalore: Several domestic car makers have decided not to push their dealers to lift more vehicles from them which has led to an immediate drop in inventory levels while losses, because of higher interest burden, have considerably reduced. What is commonly known in the automobile industry as metal pushing, car makers have during the last few months stopped asking their dealers to lift more vehicles from them in an attempt to reduce the ballooning interest cost borne by the dealers. This has resulted in reduction in interest cost by as much as 20 per cent, some of the dealers, who did not want to be named, told Business Line. The move comes at a time when several auto dealers had through their associations informed their respective manufacturers that if inventory levels keep rising, they may be forced to surrender their dealerships as the interest cost burden had made their business unviable. An official with the largest domestic car maker, Maruti Suzuki, told Business Line that the company had made a conscious call not to push more vehicles than what the dealers can manage. During the past few months, we have deliberately controlled pushing more vehicles into a dealers showroom, which has led to better inventory management, he said. The official said choking up with more vehicles leads to tight working capital for the dealers and hence a conscious business call was made to see that the dealers are not put into any inconvenience. This does not mean that we are lax on the retail push, he pointed out. Inventory levels It is considered normal if the inventory levels are between four weeks and five weeks but because of the slowdown in the industry, inventory levels had gone as high as eight or even 10 weeks. At the same time, some of the automobile manufacturers had apparently started asking the dealers to buy more cars which forced them to take larger loans leading to higher interest burden. The second largest car maker Hyundais Senior Vice-President for marketing and sales, Mr Arvind Saxena, said there was a definite move not to push more vehicles now. We have always been sensitive towards dealers problems. Ideally, there should not be more than four weeks of inventory at the dealers end and two weeks at the plant, Mr Saxena said. In the case of Toyota Kirloskar which sells mid-sized sedans like Corolla as well as the multi-purpose Innova, the orders decide the production levels. Its Deputy Managing Director, Mr Sandeep Singh, said Toyotas field staff as well as the dealers hold meetings every month to decide on the number of vehicles they should order. If the dealer asks for more vehicles or less vehicles than the market demands, we sit down together to determine what should be the correct number of vehicles that he needs, Mr Singh said. http://www.thehindubusinessline.com/2009/05/21/stories/2009052152030300.htm CARMAKERS EYE RURAL MARKET The Tribune (Web Edition)
Though the auto sales have picked up during April (after a period of de-growth), most car manufacturers now say that the real growth can be achieved only by wooing the rural customers. While sales improved by 15 per cent for Maruti Suzuki in April 2009, Hyundai Motors saw its sales improve by 11 per cent and Honda Seil by seven per cent, as compared to April 2008. Manufacturers, however, say that in order to achieve sustainable growth they will have to increase their rural penetration. Talking to TNS here today, on the sidelines of the launch of Ritz car, R S Kalsi, chief general manager, sales, Maruti Suzuki, said they were targeting to increase the volume of sales in rural areas from the present nine per cent to 12 per cent. We have witnessed a 100 per cent growth in our rural markets share in the last fiscal. From 4.5 per cent of sale in rural areas, it went up to nine per cent last year. Thus, we are now recruiting 2,500 sales executives for rural areas, besides opening new dealerships and sales and service centres, he said. Hyundai Motors, too, has realised the potential of the rural market and has launched special marketing incentives for the rural areas of Punjab and Andhra Pradesh. The company is presently running a month-long campaign across 50 small towns in the two states in the form of road shows to attract rural consumers. With a good agriculture growth, the agrarian economy is growing. We are targeting rural consumers in a big way, said Rajiv Mitra, head, corporate communications, Hyundai Motors. Other players like General Motors and Tata Motors are also wooing the customers by giving special discounts and launching attractive schemes. While GM is advertising aggressively in rural areas and offering three-year free service, maintenance and spare parts, Tata Motors is wooing people with a lucky draw scheme, wherein one buyer of a car is refunded all money back in a day. Honda Seil Cars, too, is targeting the smaller towns and cities by opening new dealerships and sales and service centres, said a company spokesman. http://www.tribuneindia.com/2009/20090521/biz.htm#10 MARUTI TO SET UP R&D CENTRE IN HARYANA Chandigarh: Maruti Suzuki India Ltd is in talks with the Haryana government to set up a research and development (R&D) centre, including a testing track, in the state. The proposed project, spread over 500 acres, is likely to be at Manesar and would attract an investment of Rs 1,800 crore. The state of the art R&D centre-cum-testing track would include all the latest equipment, including wind tunnel system, actual road conditions, etc. for testing our vehicles, disclosed R S Kalsi, the companys chief manager (sales), in an interaction with Business Standard. The unit will also have facilities for research on safety and newer technologies Currently, Maruti Suzuki does its R&D for new models at its research centre in Japan and a research facility in Gurgaon. Despite the slowdown, it is scouting for expat and Indian engineers. The local R&D centre would be one of the largest Suzuki facilities outside Japan. The company plans to up the headcount of engineers from 760 to 1,000 by 2010. Meanwhile, the company has launched its Ritz model in Chandigarh. With the launch, Maruti Suzuki hopes to replicate the success of the Swift hatchback and fortify its presence in the A2, or compact car, segment. Commenting on rural India sales, Kalsi added, In the last fiscal year 2008-09, we sold 7,22,144 cars. In the rural market, the company has more than doubled its share of sales, from 4.5 per cent to 9 per cent and it is targeting that this year the rural market will contribute 12 per cent of total sales. He also says the company is ramping up its monthly capacity to make diesel engines from 200,000 to 300,000, to reduce the waiting period of its popular Swift and Swift Dzire models, whose waiting period averages from one and a half to three months. MARUTI SUZUKI LOOKS TO BEAT SIAM AUTO INDUSTRY GROWTH PROJECTION... Business Standard (Web Edition) Kolkata: Maruti Suzuki India Ltd (MSIL) is confident of clocking a higher growth this fiscal than projected by the Society of Indian Automobile Manufacturers (SIAM) for the industry this year. SIAM projected that the passenger car segment would grow by 3-5 per cent during 2009-10. Banking on its latest launch, the Ritz, that is positioned in the fast growing upper A2 segment, MSIL hopes to do better than the industry average. "We will be doing better than what SIAM has projected", said Shuji Oishi, director, marketing and sales, at the launch of the Ritz in Kolkata. He, however, admitted that a double digit growth was not achievable this year. MSIL is targeting one million car production by 2010-11. "While it all depends on the market situation, given the current trend we can achieve this if we consider exports and domestic sales together", Oishi said. Maruti had grown by 1.5 per cent across categories in 2008-09 to 7,21,291 cars sold in the domestic market. Its exports were up 32 per cent to 70,000 during the same period. This year the company targets to export 1 lakh units mainly on the back of the hatchback A-Star that sells under the Alto brand in Europe. The company is bullish on growth in the A2 segment that comprises nearly 72 per cent of the total passenger car industry in the country. "Around 74,000 units are sold every month in the segment", said S N Burman, commercial business head of the East Zone for Maruti. MSIL clocked a four per cent growth in the segment last fiscal and is the market leader with a nearly 60 per cent share. The Ritz falls in the upper A2 segment which is around 17 per cent of the net size of the entire segment. Other cars from Maruti's stable in the A2 segment are the A-Star launched in November last year apart from the Alto, Wagon-R, Zen and Swift. The Swift sells around 8,800 units per month on an average, while the Wagon R sells around 11,000 units while the Alto tops the list with 18,000 units per month. Besides, the company is also working on upgrading the Maruti-800 and the Omni to Bharat Stage 4 emission norms. "We are not yet phasing out the cars and are working on possible technical upgrades and modifications. This would obviously impact the pricing of the cars, and it would eventually be a marketing decision whether to launch it. We will take a call on that before 2011", Oishi informed ruling out at the same time that the company could retain the old verions in tier-2 cities apart from the 11 major cities where the BS-4 emission norms will become mandatory. ...launches Ritz in Orissa Maruti Suzuki India Limited, the passenger car leader in the domestic market, launched its new model Ritz in the Orissa market on Tuesday. The latest passenger car model from the Maruti stable having both petrol and diesel variants was rolled out simultaneously in Berhampur, Rourkela and Sambalpur. Officials of Maruti Suzuki expect a good response to Ritz from the customers in Orissa on account of the cost effectiveness and fuel efficient features of the car model. The heart of the Ritz is the brand new 1.2 litre K12M petrol engine and 1.3 DDiS diesel power-plant, each offering optimum performance and fuel efficiency. This apart, the transmission system has been optimized for the Ritz to match the Indian driving habits, said Rohit Kohli, area manager (Orissa) of Maruti Suzuki. MARUTI EXPECTS TO CROSS 3-5% GROWTH THIS YEAR PTI See this story in: The Hindu Business Line (Web Edition) Kochi: Maruti Suzuki was expecting to surpass the three to five per cent growth figures projected for the automobile sector this year. 'A 3-5 per cent growth has been projected for automobile sector this year and we hope to do better than that, Mr Amitav a Roy, General Manager, Maruti Suzuki India, told reporters here. Declining to give sales target for Ritz, which was launched in Kerala on Wednesday, he said the company does not want to limit itself to any target. Last year it sold 7.22 lakh cars. The company commands the largest market share of 58 percent in the com pact (A2) segment in which it has six models, including 'Alto' and 'Swift.' Ritz is the first passenger car in India to be tested and verified for EMC (Electro Magnetic Compatibility) compliance. The EMC standards are prevalent in European countries. The new car is available in eight vibrant colours. Introductory prices for the three Petrol variants in Kochi : RITZ lXi - Rs 3,89,863.80, Ritz Vxi Rs 4,20,179, and Ritz ZXI Rs 4,81,913. The Diesel models are: Ritz LDi Rs 4,65,500.10 and Ritz VDi Rs 4,99,516.40. http://www.thehindubusinessline.com/blnus/02201767.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top Business Standard (Delhi Print Edition) The fourth largest manufacturer of commercial vehicles in the country, Volvo Eicher Commercial Vehicle Ltd, launched the E2 plus range of light and medium vehicles. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2/3 WHEELERS Go To Top Sumantra B. Barooah mint Mumbai: Indias second largest two-wheeler maker by sales, Bajaj Auto Ltd, may now have to fight a patent battle overseas. S. Ravikumar, vice-president of business development at Bajaj Auto, said the firm has won a patent for its multi-spring shock absorber system in Nigeria and 16 other markets that are part of the African Intellectual Property Organization but is yet to receive the patent certificate. Bajaj Auto had earlier said some China-made bikes sold under the brands Nexus and Nebula in Nigeria, Kenya and Uganda had copied its design. The company won a patent for the design in India on 1 May. Protecting its patent in Nigeria will be crucial as the African country is Bajaj Autos largest export market for bikes. Offenders in Kenya and Uganda may get away now as Bajaj Auto has not received patents for these markets. This is not the first time a Bajaj Auto design has been copied by a Chinese manufacturer. A few years ago, there was a copy of the Bajaj Pulsar that was branded as Gulsar. Bajaj Auto had managed to stop sales in Sri Lanka after filing a court petition. Taking precautions to protect its patents will be extremely important for Bajaj Auto as it is planning to launch a new bike brand that will be assembled in China. The new bike will initially be sold in markets such as Nigeria. http://www.livemint.com/2009/05/20233921/Bajaj-Auto-faces-another-paten.html TVS MOTOR ALLOWED TO PRODUCE FLAME The Hindu Chennai: A Division Bench of the Madras High Court has given TVS Motor Company the go-ahead for manufacturing and marketing the 125-cc Flame, according to a release from the company. The launch of Flame had triggered a legal between the company and Bajaj Auto, which had claimed that it had a registered patent involving the twin-spark plug technology. Hence, Bajaj Auto had alleged that the use of the technology in Flame by TVS Motor infringed its patented twin-spark plug technology. The High Court order followed appeals by TVS Motor against the order of a single judge of the Madras High Court granting an injunction in favour of Bajaj Auto, restraining TVS Motor from manufacturing and selling its TVS FLAME motorcycle involving twin-spark plug technology. The Court, in its order, observed that there was a difference between the three-valve configuration of TVS Motor and the two-valve configuration of Bajaj Auto. It further observed that the combustion process of TVS Motor was not exclusively based on the twin-plug operation but was based on the three-valve configuration patented by AVL GMBH of Austria and licensed to TVS Motor. Accordingly, it set aside the order of the single judge, and discontinued the injunction granted by him. http://www.hindu.com/2009/05/21/stories/2009052160681600.htm MAHARASHTRA SCOOTERS LOSS AT RS.1.43 CR Business Standard Maharashtra Scooters Ltd, jointly owned by the Western Maharashtra Development Corporation and Bajaj Holding & Investment Ltd, posted a net loss of Rs.1.43 crore for the quarter ending March 2009. This is an increase of 27.41 per cent to the loss posted for the same quarter last year. Total sales for the same quarter dipped 21.78 per cent to Rs.79 lakh as against the rs.1.01 crore earned last year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top The Hindu Business Line See similar story in: mint, Daily News & Analysis Pune: The weakness in both the global and domestic automotive industry took its toll on the results of forgings major Bharat Forge Ltd (BFL) which posted a net profit of Rs 61 crore during Q4 2008-09 despite a gain of Rs 98.78 crore on account of the difference in the foreign exchange rate. Year-on year, it translates into a 27 per cent dip in net profit. During Q4 2007-08, the company had posted PAT of Rs 83 crore which included profit of Rs 30 crore on sale of investments and a forex loss of Rs 16 crore. In the two quarters under review, the companys standalone revenues declined 50 per cent to touch Rs 292 crore (Rs 580 crore) with sales income dropping equally both in the domestic as well as international markets. The demand for automobiles globally continued its sharp decline from January to March, and the inventory pipeline accumulated over the last few months has not fully cleared, the company said. For the full year, the results showed a 6 per cent decline in revenue which stood at Rs 2,058 crore (Rs 2,197 crore). Exports grew by 4.2 per cent to Rs 1,001 crore. However, PAT fell 62 per cent to Rs 103 crore against Rs 274 crore last year. On a consolidated basis, the companys revenues grew slightly to Rs 4,774 crore (Rs 4,648 crore). Mr Baba N. Kalyani, Chairman and Managing Director, said, The first half of the year was characterised by a sharp increase in steel and crude oil prices driven by booming global economic activity. In contrast, the second half has witnessed the severest recession globally affecting all geographies and industries. BFL with its global operations has been severely affected by the downturn. BFL has taken various measures internally to reduce operational cost and working capital with emphasis on conserving cash. Similarly on the market side, we are working on increasing our customer base and product portfolio, he said, adding that with a stable Government at the Centre, he was optimistic that new measures would be put in place to stimulate the economy and bring it back on the high growth path. The board has recommended a dividend of Re 1 a share (50 per cent). The companys shares closed nearly 4 per cent down on the BSE on Wednesday at Rs 160.20. http://www.thehindubusinessline.com/2009/05/21/stories/2009052151960300.htm http://www.livemint.com/2009/05/20160431/Recession-eats-into-Bharat-For.html http://www.dnaindia.com/report.asp?newsid=1257583 A CHALLENGING OUTLOOK FOR BHARAT FORGE Manas Chakravarty mint The extent to which the current rally is liquidity-driven is evident from the fact that while the Bharat Forge Ltd results for the March quarter have been dismal, the stock has risen around 40% in the past one month. For the stand-alone firm, domestic revenues amounted to Rs177.8 crore, while sales outside India were Rs119.2 crore in the quarter. Net sales were half of what they were in the year-ago period. Thats not all: Revenues have been far lower than in the December quarter, when domestic sales were Rs215 crore and export revenue Rs244 crore. As the management has pointed out, not only did global automobile demand continue to fall during the quarter, but most importantly, the inventory pipeline built up over the last few months has not yet been cleared. That would mean sales will continue to be depressed for some time. Capacity utilization in the second half of FY09 has been only around 30%. Both the auto and the non-auto businesses have been affected. Though costs too have come down considerably, Bharat Forge posted a marginal loss of Rs2.4 crore after interest but before exceptional items compared with a profit after interest but before exceptionals of Rs95.8 crore in the year-ago period. In the December quarter, the company made a profit of Rs30 crore before exceptional items. Moreover, in terms of the amendment to Accounting Standard 11, the company has opted to carry forward foreign exchange translation losses, which, had they been charged to the P&L, would have reduced the profit even further. Still, the firm has been reducing expenses, pruning staff in its subsidiaries abroad. These efforts have enabled it to break even at such a low level of capacity utilization, which is commendable. The staff reductions abroad are likely to continue. Conditions in the companys subsidiaries are also dismal, with analysts pointing out that some subsidiaries in Europe and the UK may need support, perhaps from the stand-alone company. The companys Chinese subsidiary was very seriously affected during October-March, but sales have started picking up from April. What of the future? Several suppliers to auto companies abroad have gone bankrupt, which could be a long-term opportunity for Bharat Forge. But getting new business, especially in new lines of production, is going to take time. In the immediate future, the current quarter is expected to be weak, with any improvement coming in only after what promises to be a long hot summer in the US and Europe. http://www.livemint.com/2009/05/20235101/A-challenging-outlook-for-Bhar.html SHANTHI GEARS BRASS QUITS AMID TALKS OF SALE TO L&T The Economic Times Coimbatore: An announcement by city-based Shanthi Gears in the exchanges has triggered speculations in the market about a possible change of management in the countrys second largest industrial gearbox manufacturing company. The company informed the exchanges on Tuesday that it is in the process of revamping and restructuring the entire operational and organisational structure. This may lead to slowdown in production in all units for a short tenure, it added. Shanthi Gears manufactures a wide range of power transmission products including gears, gearboxes, geared motors and gear assemblies. It reported a turnover of Rs 245.3 crore in 2007-08. Company sources said, all top officials including GM(production) and administration manager have resigned and CMD P Subramanian is steering the affairs of the company. According to market, the company had few weeks reduced its workforce by offering VRS to 937 people. It had a strength 1500 employees. Sources at Labour Commissioner office said they havent heard any news from Shanthi Gears. There has been no major dispute in Shanthi Gears in the last five years, P Marimuthu, deputy commissioner of labour, Coimbatore told ET. However, there is speculation in the market that the company is in talks with L&T to sell stakes. L&T, which already has a big manufacturing unit in Malumichampatti, near Coimbatore is a leader number in the manufacture of low voltage switchgears. When contacted L&T media relations chief Debojyoti Chatterjee denied any such talks. L&T does not comment on market speculations, he said in his reply to the mail sent by ET. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" IT'S CHINESE TORTURE FOR AUTO COMPONENT MAKERS Pranav Nambiar Daily News & Analysis Mumbai: The Rs 22,000-crore-plus Indian auto component industry is going through some Chinese torture. Imports from original equipment manufacturer (OEM) components from China, which have grown at a CAGR of 100% over the past three years, are cutting into business of local firms. Chinese imports stood at Rs 2,200 crore in 2007-08, according to the Automotive Component Manufacturers Association of India (ACMA), while the damage in 2008-09, numbers for which are yet to be compiled, could be much higher. "The sector's growth rate will eat into the sales in the next few years. Chinese government subsidies and support enables them to price products at levels we can never compete," said Arvind Kapur, MD, Rico Auto Industries. The landed price of Chinese components is on an average 35% lesser than components sourced locally. Items like electrical parts, engine valves, steering products and wheel rims are the most popular. According to an ACMA official, imports from China now constitute more than 10% of the total components imported, from 1.5% in 2003-04. Japan, Korea and some European nations are the other big importers. Subrata Ray, sector head, corporate ratings at Icra, said the Indian auto sector has seen a burst of activity from OEMs over the last few years, which has fuelled imports. "In tandem with the growth witnessed by the auto sector in India, many OEM's have set up procurement offices in China. This helps them cut costs as well as put pressure on Indian suppliers to price their products reasonably," he added. However, it's not just the OEMs that are driving imports. The replacement or after-market is seeing demand, particularly for standard products like fasteners and bearings. "The standard catalog mass-market products, which do not require too much customisation, have impacted the after-markets. However as most of our products are modified to suit customer needs, we are not affected," said Hemal Shah, GM - commercial vehicle and after market division, Continental Automotive India. According to analysts, though at the replacement market level, quality concerns over Chinese goods are felt, this is not the case with OEMs. Industry insiders are seeking more protection for the domestic industry from the government as they feel the 10% import duties are too low. Government officials at a recently held Ficci seminar stated that auto component industry representatives had approached them for further protection from Chinese imports. The government has asked the component players to support their demand with adequate data about imports and on which components or parts they needed protection. With the Indian auto sector showing signs of revival and the US and European markets looking unattractive, local suppliers fear Chinese imports will continue to pile in. http://www.dnaindia.com/report.asp?newsid=1257591 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top The Economic Times See similar story in: Business Standard Chennai: Over 400 workers were arrested at MRFs factory in Arakkonam on Wednesday, as they continued their sit-in strike despite the managements declaration of a lockout. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/MRF-workers-arrested-in-Arakkonam/articleshow/4557082.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top The Economic Times See similar story in: The Financial Express, mint, The Telegraph, The Times of India, The Tribune, Yahoo India Mumbai: The countrys largest automaker Tata Motors has raised Rs 4,200 crore through the issue of secured non-convertible debentures (NCD) in the local market. In a statement issued on Wednesday, the company said the funds raised will be used for part repayment of the $3-billion bridge loan facility taken for acquiring Jaguar Land Rover (JLR) last year. Of this, Tata Motors had earlier pre-paid $1.11 billion. http://economictimes.indiatimes.com/Tata-Motors-raises-Rs-4200-crore/articleshow/4557893.cms http://www.financialexpress.com/news/tata-motors-issue-raises-rs-4-200-cr/463158/ http://www.livemint.com/2009/05/20233039/Tata-Motors-to-close-loan-roll.html http://www.telegraphindia.com/1090521/jsp/business/story_10998147.jsp http://www.tribuneindia.com/2009/20090521/biz.htm http://in.biz.yahoo.com/090520/50/batlw1.html MUTUAL FUNDS CUT TATA MOTORS HOLDING IN APRIL: DATA The Economic Times See similar story in: Business Standard Mumbai: Mutual funds took advantage of a 34 percent rise in the shares of Tata Motors in April to cut their holdings by 40 percent in the vehicle maker, which is facing pressing funding requirements and slowing sales. Funds sold more than five million shares of Tata Motors in April, cutting their holdings to 1.7 percent of India's leading vehicle maker from 2.82 percent a month earlier, data from mutual fund tracking firm ICRA Online shows. Some funds from firms such as Birla Sun Life, Kotak, Reliance Capital and DSP BlackRock exited the stock, while those from IDFC and Sundaram BNP Paribas cut exposure. Fund managers and analysts attribute the selling to profit taking after Tata Motors' stock rose 34.4 percent in April, its biggest monthly rise since Dec 1998, and concerns over the firm's cash flows, funding plan for capital expenditure and future debt composition. The firm is also scrambling to refinance by early June bridge loans of $1.9 billion taken for last year's purchase of the Jaguar and Land Rover (JLR) brands. "The upside is limited because of risk associated with the firm on JLR front," Vaishali Jajoo, a senior research analyst at Angel Broking said. Demand in India for commercial vehicles remained weak in a slowing economy, and JLR's key European and US markets have deteriorated and are expected to remain weak, she said. Sales in India of trucks and buses slumped 26 percent in 2008/09 (April/March) and fell 11.3 percent in April from a year earlier, according to data from the Society of Indian Automobile Manufacturers (SIAM). SIAM has forecast sales to rise 7 to 10 percent in 2009/10, but it said last month the recovery had not yet begun. "Looking at all these things, the valuation looks expensive and that is one of the reasons why institutions might have reduced the exposure," Jajoo said. Still, funds look to have gotten out a little early. Tata Motors's share price has risen 50 percent so far in May, helped by a 37 percent surge this week. RISK Tata Motors had $100 million of cash on its books at the end of 2008, and sources have said it plans to raise around $900 million in bonds this week. It raised about 25 billion rupees ($525 million) from advance bookings for its Nano, the world's cheapest car, but that disappointed investors as it was only about half the collections analysts had expected. "When every global automaker is in such a dire shape and you don't know what exactly the base numbers are for fiscal 2009, I think it's a big risk," said an analyst, who asked not to be named as he was not authorised to comment on individual stocks. "Fundamentally, Tata Motors is still not in very good shape given funding requirements for JLR, investment in Nano... plus their commercial vehicle segment is still in downturn," he said. Instead, firms such as Mahindra & Mahindra, Maruti Suzuki and Hero Honda, all of which attracted fund interest in April, would be better bets, the analyst said. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" BAJAJ FINSERV POSTS RS 107-CR NET IN Q4 The Hindu Business Line Mumbai: Bajaj Finserv has reported a net profit of Rs 107 crore in the fourth quarter of 2008-09 against a net loss of Rs 21 crore in the corresponding period last year. For the full year, the company registered a net profit of Rs 71 crore against a loss of Rs 33 crore in the previous fiscal, a company press release said. The companys life insurance venture, Bajaj Allianz Life Insurance, posted a net profit of Rs 45 crore in the just ended fiscal as against a loss of Rs 16 crore in 2007-08. The fresh business premium underwritten by the company registered a negative growth of 33 per cent at Rs 4,491 crore (Rs 6,674 crore) and the renewal premiums grew by 101 per cent to Rs 6,133 crore (Rs 3,051 crore). The profit of the general insurance company, Bajaj Allianz General Insurance, fell to Rs 95 crore in 2008-09 against Rs 106 crore in the previous year. The gross written premium grew 10 per cent to Rs 2,649 crore (Rs 2,404 crore). The auto finance arm Bajaj Auto Finance reported a net profit of Rs 34 crore in FY 09 against Rs 20 crore in FY 08. However, the companys deployments fell 19 per cent to Rs 2,451 crore (Rs 3,036 crore) due to demand contraction and the result of pursuing cautious credit growth, the release said. http://www.thehindubusinessline.com/2009/05/21/stories/2009052152100600.htm BAJAJ AUTO FINANCE Q4 PAT RISES THREE-FOLD PTI See this story in: The Hindu Business Line Mumbai: Bajaj Auto Finance on Wednesday said its profit grew over three-fold during the fourth quarter ended March 31, 2009, to Rs 15.06 crore from Rs 4.57 crore during the January-March quarter a year ago. Total income of the company also rose to Rs 17 5.80 crore during the March quarter of FY'09 from Rs 141.75 crore in the corresponding quarter a year earlier. The company has declared a dividend of 20 per cent or Rs 2 per share. For the financial year ended March 31, 2009, Bajaj Auto Finance posted a profit after tax of Rs 33.92 crore, registering 69 per cent growth compared with Rs 20.12 crore in FY'08. Total income of the firm during FY'09 rose to Rs 599.39 crore from Rs 502. 74 crore in FY'08. Shares of Bajaj Auto Finance surged over 10 per cent and were trading at Rs 123.50 in the late afternoon trade on the BSE. http://www.thehindubusinessline.com/blnus/17201630.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top PTI See this story in: The Economic Times, Asian Age, The Times of India, The Indian Express New Delhi: Petrol prices may be raised by about Rs 2 per litre and diesel rates cut by Rs 0.30 a litre if a proposal to free auto fuel prices from state control is approved by the incoming Cabinet. http://www.indianexpress.com/news/petroleum-min-favours-marketbased-pricing-for-fuel/462956/ OIL SCALES NEW SIX-MONTH HIGH AT $62 A BARREL AFP See this story in: The Times of India New York: The price of oil breached 62 dollars a barrel in New York on Wednesday, scaling a new six-month high, amid a bigger-than-expected drop in US crude reserves and a weakening greenback. http://timesofindia.indiatimes.com/Oil-scales-new-six-month-high-at-62-a-barrel/articleshow/4558076.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Bloomberg See this story in: Business Standard, Hindustan Times Washington: Automakers say they wont have to overhaul their technology or flood the US with tiny cars buyers may not want under President Barack Obamas standards for fuel economy and greenhouse-gas emissions. Even as they face more than $21 billion in annual costs to meet the new standards by 2016, General Motors Corp and Ford Motor Co will benefit from a single national system, rather than a patchwork of state rules, and an approach that allows them to tweak the fuel efficiency for each category of vehicle sizes and weights. The plan announced by Obama at the White House on Tuesday gives the automobile manufacturers a lot of flexibility, said Robert Sawyer, professor of energy studies at the University of California, Berkeley. Its designed in part to not penalise the US manufacturers versus their Japanese competitors. The US automobile industry will be able to deal with it. Automaker chief executive officers, including Fritz Henderson of GM and Alan Mulally of Ford, stood alongside Obama and environmentalists at the White House on Tuesday and endorsed his plan. It would require the industry to produce vehicles that get, on average, 35.5 miles per gallon by 2016 models, up from the 27.3 average in 2011, the last year before the new plan takes effect. The plan wont necessarily force Ford to make smaller vehicles, Mulally said in an interview after Obamas White House ceremony. We can make the size of vehicle that people really do want, he said. The command is, no matter what the size, that we will improve fuel efficiency every year going forward. It wont be easy, said Kim Hill, associate director of the Center for Automotive Research in Ann Arbor, Michigan. In addition to honing their technology, automakers will have to pay to retool plants for smaller, though not necessarily mini-sized, vehicles to meet the goals by 2016. Some of those costs will have to be incurred on a much more rapid timeline, Hill said. This is where you might find Chrysler and General Motors, who are already on the edge, saying, Where are we going to get that money? Chrysler LLC and GM are surviving on US aid. Obamas auto task force pushed Chrysler into bankruptcy reorganisation and may do the same for GM if it doesnt meet goals to revamp its operations and finances by June 1. There may be 16.8 million vehicles sold in the U.S. in 2014, according to a study by AT Kearney, a consulting firm based in Southfield, Michigan. If that rate held until 2016, automakers would face $21.8 billion in added annual costs, based on the White House estimate that the policy will carry a price tag of $1,300 per vehicle for 2016 models, including the cost of meeting currently mandated standards. It costs more to make fuel-efficient vehicles, it costs more upfront, Lisa Jackson, administrator of the Environmental Protection Agency, said in an interview on Tuesday. The cost pays for itself for consumers through fuel savings after three years of driving, she said. The five per cent annual increase in fuel mileage over five years would save 1.8 billion barrels of oil and reduce 900 million metric tons of greenhouse gas emissions by 2016, according to the administration. That is the equivalent of taking 177 million vehicles off the road. Auto companies achieved some important goals in Obamas plan. They will face one federal standard rather than regulations by California and other states, which could apply different rules, raising costs. The companies also won assurances that the overall 35.5 mpg goal can be achieved through a series of standards set by vehicle size and weight rather than for entire fleets. That removes pressure to produce small cars to compensate for making pickups and sport utility vehicles. Automakers will be forced to eventually reduce the size of vehicles in their fleets, said Bret Smith, an alternative- vehicle analyst at the Center for Automotive Research. The goal is to let you have your cake and eat it too to be able to keep the vehicles you want, Smith said. But the reality is that there will be downsizing because its so expensive to make the larger vehicles more fuel-efficient. The details of Obamas plan will be crucial, said Dan Becker, director of the environmental group Safe Climate Campaign in Washington. The administration should take steps to prevent automakers from manipulating their fuel-economy targets by moving vehicles among weight classifications, he said. It has a threat automakers will game their way out of the rules by adding bulk to vehicles so they qualify for weaker standards, Becker said. Theyve done a lot of that before. Japans Toyota Motor Corp and Honda Motor Co are closer to meeting more stringent standards than the US-based companies, said KG Duleep, managing director of the consulting firm Energy & Environmental Analysis Inc in Arlington, Virginia. Even theyll have some difficulty with their light trucks, he said. Toyota already meets the Obama targets, or is close to them, on models including the Prius, Corolla, Yaris and RAV4, but theres still a lot of work to do, said Jim Lentz, president of Toyotas US sales arm, in an interview. We all have a big challenge on the light-truck side. Technology already available to U.S. automakers includes Fords EcoBoost powertrain, which adds power with turbochargers while feeding precise amounts of fuel to the cylinders to improve efficiency, said Hill of the Center for Automotive Research said. By 2013, 90 percent of all Ford vehicles will be able to incorporate that technology, Mulally said. GMs Hybrids GM has plans already to move its fleet to alternative propulsion, including the Chevrolet Volt electric car scheduled for next year. In a viability plan submitted to the federal government, the company said it will have 26 gas-electric hybrid models in 2014, up from 9 this year. GM has said it intended for its car fleet to attain a 38.6 mpg average fuel economy by 2015 and its trucks to hit 27.6 mpg, according to that plan. The company would use smaller engines, six-speed automatic transmissions, lighter vehicles, hybrids and all-electric vehicles. Bill Fords Comments Ford Executive Chairman Bill Ford said Obamas plan represents swift action to prevent the deterioration of the industrial base. Thats something I felt strongly about for years, and I didnt think enough attention was being paid to it nationally, Ford said in an interview yesterday. Automakers can use off-the-shelf technology, including cleaner engines, more efficient transmissions, better air conditioning systems and cleaner fuels, said Jim Kliesch, a senior engineer with the Union of Concerned Scientists Clean Vehicles Program. Automakers have the technology they need to meet and beat these standards, Kliesch said in a statement. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=Business GM CONFIRMS FIAT, MAGNA, RHJ INT'L AS OPEL BIDDERS Agencies See this story in: The Economic Times, The Financial Express Frankfurt: General Motors Europe on Wednesday said Italy's Fiat, Canadian autoparts maker Magna and the RHJ International holding company are in the running to take over its Opel unit, with Germany saying it would choose the preferred suitor early next week. http://www.financialexpress.com/news/general-motors-opel-unit-attracts-3-bids/463017/ MAGNA'S BID FOR OPEL PREFERRED Bloomberg The Economic Times Berlin: Magna International Incs offer for General Motors Corps Opel unit is preferred by German regional governments over a bid from Fiat SpA, according to a state minister involved in the talks. FIAT CONFIRMS BID FOR OPEL, VAUXHALL: SPOKESMAN Agencies The Economic Times Milan: Fiat on Wednesday made a formal offer to take over Germany's Opel and Britain's Vauxhall, two European subsidiaries of US auto giant General Motors, a spokesman for the Italian company told media. http://economictimes.indiatimes.com/News/International-Business/Fiat-confirms-bid-for-Opel-Vauxhall-Spokesman-/articleshow/4557459.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee gained by 30 paise against the dollar on Wednesday, in a volatile market, said dealers. The rupee opened at 47.95 and strengthened to touch an intra-day high of 47.29. It weakened to close at 47.48, against the previous close of 47.78. The rupee opened with a negative gap but gained after big corporate houses were seen selling dollars, said a dealer with a private bank. The rupee gained despite the domestic equity markets closing in the red, added the dealer. In the overseas markets, the dollar weakened against major currencies. In the forward premia market, the six-month premium closed substantially higher at 2.88 per cent (2.51 per cent) and the one-year closed at 2.36 per cent (2.14 per cent). http://www.thehindubusinessline.com/2009/05/21/stories/2009052152090600.htm SENSEX SNAPS 3-DAY WINNING STREAK PTI See this story in: The Hindu Business Line Mumbai: ICICI Bank and DLF led the fall at the Bombay Stock Exchange on Wednesday as the 30-share Sensex was down 241 points, snapping a three-day winning streak, even as second-line stocks scored huge gains in highly volatile trade. Coming off its day's high of 14,405.51, the BSE barometer finally settled at 14,060.66, netting a fall of 241.37 points or 1.69 per cent from its previous close. Foreign institutional investors, who are the principal market drivers, bought mid-cap and small-cap shares heavily. Investor sentiment in these segments was bolstered by reports that Life Insurance Corporation (LIC) plans to invest Rs 50,000 crore in the stock market in this fiscal. DLF was down 7.77 per cent while the largest private sector lender ICICI Bank shed 6.56 per cent followed by Bharti Airtel (6.06 per cent) and BHEL (5.75 per cent). The broader 50-share Nifty of the National Stock Exchange also tumbled 48.15 points or 1.11 per cent to close at 4,270.30. Bonanza Portfolio Assistant Vice-President, Mr Avinash Gupta said: This was a day of huge volumes amid high volatility. The volumes in the cash market were more than Rs 40,000 crore at the NSE, which is a record. Brokers said sustained bouts of buying and selling in frontline counters, particularly the market heavyweight Reliance Industries and bank stocks triggered a high level of volatility throughout the session. http://www.thehindubusinessline.com/blnus/05201901.htm INFLATION PROJECTED AT 0.1% IN 2009-10: CMIE See this story in: The Indian Express Mumbai: The average inflation during 2009-10 is projected to remain negligible at just 0.1 per cent as against 8.3 per cent in 2008-09, Centre for Monitoring Indian Economy (CMIE) said in its monthly review in Mumbai. Inflation till April 18 was 0.3 per cent. It is expected to hover around this level in most months of fiscal 2009-10, CMIE said. During the year, prices of fuel products and manufactured goods is projected to see a fall while inflation in primary articles will remain firm. The Reserve Bank of India (RBI) has projected lower money supply growth during FY 10. Capacity expansion is expected to continue during FY 10. All these factors are expected to keep downward pressure on inflation in 2009-10. In addition to these factors, higher base will also play a role in bringing down inflation in 2009-10, CMIE said. Prices of fuel and electricity as a group are projected to see a decline of six per cent as against 7.4 per cent rise in FY 09. Electricity prices are expected to rise during the year but a decline in petroleum product prices will more than compensate for the rise in electricity prices. http://www.indianexpress.com/news/inflation-projected-at-0.1-in-200910-cmie/462881/ Last Financial closing
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