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| INDUSTRY M&M plans 'small 4-wheeler', MCVs Tatas extend JLR bridge loan tenure Tata Motors may have to infuse funds to bridge JLR pension gap INTERVIEWS/FEATURES Tata Motors launches new class of trucks Tata Motors launches six new vehicles; pilot runs in July Nissan top team coming to assess project CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS Bajaj Auto eyes 40% share of eastern market Indian court uses blog reference to solve TVS-Bajaj patent issue | ALLIED INDUSTRIES Tyre sales ride on replacement demand FINANCE & INSURANCE INTERNATIONAL NEWS GM talks with Europe break down, Chrysler future on hold Fiat, Magna go head to head in race for Opel Japan's top car makers conduct global output cuts ECONOMY & FINANCE Inflation rate remains unchanged at 0.61% Moodys caution on Indian economy
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| INDUSTRY Go To Top The Hindu Business Line (Web & Print Edition) See similar story in: The Tribune (Web Edition), The Indian Express (Web & Print Edition), The Hindu (Web & Print Edition), The Times of India (Web & Print Edition), Deccan Herald (Web Edition), The Economic Times (Web & Print Edition), Business Standard (Web & Print Edition), The Financial Express (Web & Print Edition)
The growth in profit is a result of the company choosing to exercise an option under Accounting Standard 11 by which it is not required to provide for exchange differences arising from foreign currency loans. This helped it save Rs 166 crore while a gain of Rs 34 crore from sale of its stake in Swaraj Mazda only improved the bottomline. Excluding the impact of exchange difference and other exceptional items, profit after tax for the quarter under review was Rs 279.5 crore against Rs 209 crore, a growth of 34 per cent, said a company statement. During the January-March quarter, M&M reported sales growth despite the downward trend in the automobile market. The results represent the resilience of the Mahindra group in turbulent times, said Mr Anand Mahindra, Vice-Chairman and Managing Director, at a press conference here on Thursday. When the domestic utility vehicle market fell 11 per cent, M&M grew 12 per cent by selling 48,088 units in the fourth quarter and gaining a market share of 63 per cent. This strong performance was thanks to the good sales of the Bolero and Xylo. Xylo bookings crossed the 15,000-unit mark in the first three months of its launch. The company showed a marginal growth in tractor sales at 28,679 units, mainly because of the 17 per cent growth in sales of Swaraj Tractors at 9,253 units. Dr Pawan Goenka, President, Auto Sector, Mahindra & Mahindra, said the company has a capital expenditure plan of Rs 5,000 crore for the next four years of which around Rs 2,000 crore has been earmarked for this fiscal, mainly in the new Chakan plant for commercial vehicles with ITEC of the US. A small four-wheeler, a truck (in the category of medium and heavy) and a premium sport-utility vehicle will roll out this year, he said. The plant will have a capacity of three lakh units, of which 2.5 lakh units would be for M&M vehicles and the balance for Mahindra Navistar. Once the plant becomes fully operational, M&Ms production will be up to six lakh units annually. Dr Goenka said the company would enter the US market by the end of this fiscal. We have signed up with over 300 independent M&M dealers in the US for our Scorpio SUV and pickup options, he said. M&Ms shares were up nearly 2 per cent on the NSE on Thursday at Rs 637. http://www.thehindubusinessline.com/2009/05/29/stories/2009052951000200.htm http://www.tribuneindia.com/2009/20090529/biz.htm http://www.indianexpress.com/news/mahindra-&-mahindra-q4-net-up-89-pct/467418/ http://www.hindu.com/2009/05/29/stories/2009052955261300.htm http://timesofindia.indiatimes.com/Business/MM-profit-up-89-at-Rs-418cr/articleshow/4591056.cms http://www.deccanherald.com/content/4930/mampm-q4-net-up-89.html http://www.business-standard.com/india/news/mm-net-surges-89-per-cent/359496/ http://www.financialexpress.com/news/mahindra-&-mahindra-q4-net-up-89-pct/467418/ M&M PLANS 'SMALL 4-WHEELER', MCVS Neha Rishi Daily News & Analysis (Web Edition) Mumbai: Auto major Mahindra and Mahindra (M&M) is planning to launch a small four-wheeler and medium and heavy commercial vehicles (CV) in the current financial year. Pawan Goenka, president (automotive), M&M, said, "We will enter two sectors where we don't have a presence yet with the launch of a small four-wheeler by the third quarter and medium and heavy commercial vehicles (CV) by the end of the calendar year. These launches will give us new volumes." Along with these two new products, M&M will also launch its premium sports utility vehicle (SUV) this fiscal. All three products will be rolled out from the Chakan plant. The company has lowered its planned capital expenditure for the automotive division by 25-30% or Rs 500 crore to Rs 5,000 crore. The investment will be spread over a period of four years starting FY09. Goenka said M&M is not planning to launch any new products with its joint venture with Renault for the next one year. Logan, which is the product of this JV, has been performing below expectations. "We have set a limit of selling only 15, 000 Logans this year, " Goenka said. He said Mahindra is planning to make China a global export hub for tractors through its JVs with two Chinese firms. M&M's plans of launching a Scorpio pick-up and Scorpio SUV in the US by the end of this fiscal are on track, Goenka said, adding, "We have already signed up with more than 300 dealers in the US to set up independent showrooms. We will launch the vehicles zone-wise." Goenka said the company wasn't planning any overseas acquisitions and will concentrate on the domestic market. The loss incurred owing to a recent strike at M&M's Nashik plant will be recovered partly by the next week and balance in couple of months. "This has had an impact on the billing and not on the retail side as we had enough inventories with the dealers," he said. Meanwhile, M&M reported a better-than-estimated 89% surge in fourth-quarter profit, helped by accounting changes and the sale of a stake. Net profit for the three months ended March totalled Rs 418 crore ($88 million) compared with Rs 221 crore a year earlier, the company said. Excluding one-time gains and writebacks, profit would have been Rs 279 crore. Sales in the quarter climbed 15% to Rs 3,620 crore. Mahindra wrote back Rs 166 crore because the government changed accounting rules regarding foreign exchange provisions, CFO Bharat Doshi told reporters. Net profit included Rs 34 crore of a one-time gain from the sale of a stake in Swaraj Mazda and a pretax Rs 18 crore government grant in the form of a tax refund. (with Bloomberg) http://www.dnaindia.com/report.asp?newsid=1259876 TATAS EXTEND JLR BRIDGE LOAN TENURE The Telegraph (Web Edition) See similar story in: The Hindu Business Line (Web & Print Edition), Hindustan Times (Web Edition) Mumbai: Tata Motors on Wednesday said that it has extended by 18 months the maturity of its $1-billion bridge finance loan that was taken to acquire Jaguar Land Rover. In a statement issued late on Wednesday, Tata Motors said the maturity would now be extended up to December 31, 2010. The loans were due for repayment on June 2. http://www.thehindubusinessline.com/2009/05/29/stories/2009052951010200.htm http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName= TATA MOTORS MAY HAVE TO INFUSE FUNDS TO BRIDGE JLR PENSION GAP Lijee Philip & MV Ramsurya The Economic Times (Web Edition) Mumbai: Tata Motors could be forced to put money and plug the widening gap in the pension plans operated by Jaguar Land Rover as weak equity markets play havoc with the companys well-laid out plans, people familiar with the development told ET. A weak equities market has a direct impact on pension plans as trustees of such plans invest the pension corpus to maximise returns which are then used to meet pension payments. Most pension plans invest in both, equity as well as the debt markets. Last year, at the time of the JLR acquisition, the companys Pension Fund had a corpus of e3 billion (about Rs 19,500 crore), of which 70% was invested in the equities market and the remaining in the debt market. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Tata-Motors-may-have-to-infuse-funds-to-bridge-JLR-pension-gap/articleshow/4590832.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CARS, SUVs, MUVs Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top The Economic Times (Web & Print Edition) See this story in: The Times of India (Web & Print Edition) Mumbai: Indias largest automobile company by size Tata Motors, on Thursday, launched a new range of premium trucks called the World Truck, which is expected to give its commercial vehicles business a much-needed push. At present, Mercedes and Volvo are in the higher end truck segment. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" TATA MOTORS LAUNCHES NEW CLASS OF TRUCKS Hindustan Times (Web & Print Edition) See similar story in: The Statesman (Web Edition), The Hindu (Web & Print Edition), Yahoo India (Web Edition), Deccan Herald (Web Edition), The Hindu Business Line (Delhi Print Edition) Mumbai; Tata Motors, the countrys largest maker of trucks, buses and cars, on Thursday unveiled a range of new trucks aimed at weaning market share away from international competitors including Scania, Volvo and Mercedes Benz. The new range of trucks, made in collaboration with a spectrum of global partners and Tatas Korean subsidiary Tata Daewoo Commercial Vehicles, would comply with international standards of quality, efficiency and comfort, the companys head of commercial vehicles said. We are aware that other manufacturers have very good products. We are aiming to provide a choice to customers who would want the same features at a lower lifecycle cost, said PM Telang, executive director, commercial vehicles, Tata Motors. The company did not reveal the price of the truck range, which would be revealed at the formal launched on Friday. Lifecycle costs for trucks typically include operating costs and overheads including repair time and idle time. The trucks to be unveiled in India would have engines of up to 380 horse power (HP), though there would be options to fit engines of up to 560 HP, said R Ramakrishnan, head, marketing of medium and heavy trucks, Tata Motors. A Maruti 800 has an engine capable of 40 HP. To be available in sizes from 10 tonnes to a maximum possible 75 tonnes, the trucks would be manufactured at Tata Motors Jamshedpur factory. The initial capacity would be 50,000 units per year, which could be ramped up to 1,50,000 based on demand. Tata Motors has adopted a modular approach to the trucks, which would be made in form of separate, interchangeable components. This means the truck can be customised according to the buyers requirements. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=256000 http://www.hindu.com/2009/05/29/stories/2009052955201300.htm http://in.biz.yahoo.com/090528/50/batnca.html http://www.deccanherald.com/content/5040/tata-motors-unveils-slate-trucks.html TATA MOTORS LAUNCHES SIX NEW VEHICLES; PILOT RUNS IN JULY Shally Seth, AP See this story in: mint (Web & Print Edition) Indias largest commercial vehicle maker by sales, Tata Motors Ltd, on Thursday launched six new vehicles as part of its so-called world trucks range. The company, which has been hit by falling commercial vehicle sales in a slowing economy, is banking on the new range to change its reputation of being a maker of underpowered trucks that have low payload and fuel efficiency. This is a massive project that will transform the way we do trucking in India, said Prakash M. Telang, executive director of Tata Motors. The company is unveiling the new products after commercial vehicle sales shrank 22% to 384,122 units in the year ended 31 March from the previous year. The new trucks are the latest bid by the company to transform itself into a global auto power. So far, Tata Motors efforts to expand its global footprint have met with difficulty, and it remains an Indian company. In April it sold 37,462 vehicles in India and exported just 1,261. But it hopes to eventually export the Nano, the Rs1 lakh ($2,000) car launched in India this year, to Europe and the US, and officials say they aim to sell half their new trucks outside India. The new range, in which Tata Motors invested Rs1,000 crore, comprises multi-axle trucks, tractor trailers, tippers, mixers, and special application vehicles. Telang said the governments projects to improve road infrastructure in the cities and villages would boost demand for such products. Their ability to cover the entire country will give them an edge over the existing and the new entrants, said Chennai-based V.G. Ramakrishnan, senior director (automotive and transportation) at consulting firm Frost and Sullivan India. The trucks will be produced in the companys 50-year-old facility in Jamshedpur in Jharkhand, and Gunsan in South Korea, company officials said. The trucks range from 10 tonnes to 75 tonnes and will be in the range of 280-380 horsepower. Tata Motors will start pilot runs for the trucks in July and launch them in the July-September quarter. Ravi Pisharody, vice-president of sales and marketing, said the company is still working on pricing. The new modelswhich have been developed with its subsidiary Tata Daewoo Commercial Vehicle Co. in South Korea and a technical centre located in Europeare being positioned against the Mercedes-Benz Actros, and products made by Scania AB and AB Volvo in India. http://www.livemint.com/2009/05/28225022/Tata-Motors-launches-six-new-v.html NISSAN TOP TEAM COMING TO ASSESS PROJECT Sindhu Bhattacharya Daily News & Analysis (Web Edition) New Delhi: Nissan Motor Co, which has seen top-level restructuring and exodus of many key officials in India in recent months, appears on track to begin car production from its Chennai facility next year. It has begun work on this project and the 'Micra' is expected to roll out of this facility by mid-2010. It is perhaps to give out a firm indication to this effect that a top level delegation from the company's Japanese headquarters is arriving in Chennai next week. The team would be led by executive vice-president Colin Dodge. The other members include senior VP Gilles Normand, corporate VP Andy Palmer and at least five other top ranking officials. Besides indicating the way forward for the Chennai project, the delegation is also slated to hold meetings with top officials of commercial vehicles maker Ashok Leyland on the separate joint venture for light commercial vehicles (LCV). Sources say the Nissan-Leyland LCV project, which has now been delayed to 2011, may actually be expanded to include some additional products from Nissan's global portfolio. But in all likelihood, the planned investment of Rs 2,000 crore in this venture would have to be scaled down. Some days back, the Ashok Leyland team had indicated that the two companies are also considering "optimisation of investments by making use of existing facilities of both," while acknowledging that the project has been pushed back by at least six months on land acquisition delays to 2011. Director (corporate planning) at Nissan, Hideo Niwa, merely confirmed that Nissan's passenger car plans from Chennai remained intact. He did not comment on the JV with Ashok Leyland for LCVs. Nissan's Chennai project is being set up under a joint venture between Nissan and sister company Renault SA and will have an installed capacity of four lakh units. And since Renault has scaled down its production plans because of the global economic situation, only two lakh units would be produced to begin with. The Micra, or March, a small car from the Nissan portfolio, is the most likely first vehicle to roll out of Chennai and sources indicated that Nissan proposes to manufacture 4-5 models over the next few years - including Micra, followed by a derivative of Micra and then a sedan in 2011. The Micra is expected to be available in both petrol and diesel versions and a large part of the production volume would be exported. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top Alka Kshirsagar The Hindu Business Line Pune: Work at the Chakan factory of Hyundai Construction Equipment India Private Ltd (HCEIL) came to a standstill as several employees agitated outside the gate to protest against being given pink slips. According to sources in Chakan, nearly 40 employees including both blue-collar workers as well as managerial staff were told last evening that their services had been terminated with effect from now. Most of them belonged to the fabrication and production departments, and the reason was not immediately clear, the source added. We also learnt of the development only when we arrived for work this morning, one employee, who requested anonymity, said. An e-mail to the head office at Mumbai on the issue evoked no response. HCEIL is a wholly-owned subsidiary of Hyundai Heavy Industries Company Ltd (HHI), Korea. The greenfield facility, the only one in the country manufacturing construction equipment in the group, and employing around 400 people, went into production last December. Built with an investment of Rs 300 crore, the facility began with the manufacture of 20-tonne hydraulic excavators, and in December had said that new product lines would be added in time. Equipped with a fabrication shop, paint shop and assembly lines, the initial installed capacity was 2,500 units a year, which could be ramped up to 10,000 a year at the same location. http://www.thehindubusinessline.com/2009/05/29/stories/2009052951040200.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BIKE MAJORS TO FIRE UP 100CC TRACK AGAIN The Economic Times New Delhi: Bike companies are vying with each other for the high-volume 100cc segment dominated by market leader Hero Honda. Five out of every 10 two-wheelers sold in India are 100cc bikes. Indias fastest growing two-wheeler company, Honda Motorcycle & Scooter India (HMSI), and Bajaj Auto, are both going to make their presence felt in the segment this year, which has 50% share of the 74.37-lakh two wheeler market. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/ BAJAJ AUTO EYES 40% SHARE OF EASTERN MARKET Business Standard Kolkata: Bajaj Auto Ltd(BAL) expects to take its market share in the eastern region including West Bengal and the North East to 40 per cent by the end of this fiscal, on the back of the upgraded version of its flagship brand, Pulsar, and upcoming new launches. The company currently had a 30 per cent share in West Bengal and around 36 per cent in the north eastern markets, said S K Bajpai, regional manager, BAL. Together, both the markets contribute around 10 per cent in the net sales volumes of the company. We sell around 5,500 bikes per month in West Bengal on an average and around 3,000 bikes in the North East, he added. The 135 cc Discover is the highest selling model in the region. Now, the company is banking on the upgraded version of the Pulsar 150 cc and 180 cc to drive sales. While the Pulsar 2009 edition offers more power and style, the price difference is negligible. The 150 cc bike will now cost Rs 60,468 ex-showroom in Kolkata, up by Rs 800, while the 180 cc model is priced at Rs 64,600 ex-showroom, Bajpai said. http://www.business-standard.com/india/news/bajaj-auto-eyes-40-shareeastern-market/359486/ INDIAN COURT USES BLOG REFERENCE TO SOLVE TVS-BAJAJ PATENT ISSUE Soumya Shanker and Malathi Nayak mint New Delhi: A blog post by a student was instrumental in TVS Motor Co. Ltds victory over Bajaj Auto Ltd in their recent legal skirmish over patent infringement issues, setting a precedent for the use of blog content by the countrys courts. In order to understand the complex technologies under consideration, the judges curiously chose to rely heavily on a blog entry by J. Sai Deepak, a final year LLB student from the Rajiv Gandhi School of Intellectual Property Law in IIT Kharagpur. The blog, Spicy IP India, deals with issues of intellectual property law. Last week, the Madras high court allowed TVS to manufacture and sell vehicles with twin spark plug and triple valve engines. This judgement overturned a February 2008 decision by a single judge bench of the same court. The single judge had restricted TVS from producing the 125cc TVS Flame, after Bajaj alleged its patent on twin spark plug engines had been infringed by TVS. A division bench of Chief Justice S.J. Mukhopadhyaya and justice Ibrahim Kalifula held that the technology used by TVS was considerably different from the twin spark plug technology patented by Bajaj. In order to establish this difference, the judgement quoted large sections of the blog to explain the distinctive features of both engines. The distinction made out by the author of the said article is quite appealing and does not conflict with the facts pleaded by the parties before us, the judgement said. What gave the case significance beyond being just another chapter in the Bajaj-TVS tussle was that it set a precedent for the future use of blogs in courts. Indian courts have traditionally relied only on books and journals whose reputation has been firmly established. Legal experts believe this is the first time a blog has been cited in a judgement by an Indian court. It was bound to happen at some point. There are two interesting aspects hereone, the reliance in a judgement on an Internet source, and the other, the acknowledgement of the source by the judges, says Sumeet Malik, associate editor at Lucknow-based Eastern Book Co. that publishes reports on Supreme Court cases. There have been certain instances where print materials have been cited without acknowledging the authors. Sudhir Krishnaswamy, professor at National University of Juridical Sciences, Kolkata, who specializes in constitutional law, says Indian judges tend to be reckless in their use of sources in judgements. In judgements on affirmative action judges have cited from Upanishads to speeches and party manifestos. I have read both the blog post and excerpts from the judgement and this is a better instance, he said. The judgement, while relying on the blog post, does not mention what elements would qualify other blogs to be used as a references. Unlike academic journals, online blogs are not peer reviewed, and often do not cite authorities and reliable sources to support facts and conclusions. Malik adds that this is an interesting development as Indian courts are grappling with the usage of Internet sources in judgements. He points to two separate and conflicting judgements of the Supreme Court, both of 2008, that have different opinions about the usage of Wikipedia in Indian judgements. While justice S.H. Kapadia allowed the usage of definitions of telecommunication devices in Reliance Infocomm Ltd v. BSNL Ltd, justice S.B. Sinha in another case held that inputs in Wikipedia couldnt be relied upon in court, as he was not convinced of their authenticity. In the US, Krishnaswamy explains, there is the Bluebook that provides a framework of rules and prescribes the style of legal citations. It discusses elements of citing electronic media and non-print resources. Krishnaswamy and Rahul Mathan, Bangalore-based partner of law firm Trilegal, say that in most patent trials across the world courts rely on other public sources or experts instead of allowing parties to lead evidence. Sai Deepak, the author of the blog post, says he was quite surprised to hear that his opinion had been relied upon by the high court. While maintaining that the Spicy IP blog was written for a professional audience, and included writers who are professors and experts in the field of intellectual property law, he expressed his concern that other blogs might not subscribe to the same academic standards. But Mathan adds, Blogs are becoming more and more mainstream. If judges can quote from newspapers news and opinion pieces, reply to letters and convert them to public interest litigations, I see no reason why they will not give the same value to a blog. He says, however, it would be incorrect if the courts were to rely on facts and not the logic laid down in blog posts. (At the) end of the day if a piece of writing, regardless of where it is has been published, has logic and reasoning and is written by a knowledgeable person a judge is free to accept it. Since the Spicy IP blog is exceptionally well written for a blog, its use in this case might well be justified. However, blogs vary widely with respect to the qualifications of authors and overall authenticity. Whether other courts will follow this example and accept certain blogs as credible sources remains to be seen. As for the original dispute, it is far from settled. Bajaj has decided to file an appeal in the Supreme Court challenging the decision to permit production and sale of the TVS Flame. Nalini Chidambaram, the senior counsel representing Bajaj, says the blog was used without prior referral to Bajajs lawyers, giving them no opportunity to argue against its use. She also said Bajaj would question the reliability of the students article when the case was heard in the Supreme Court. The Madras high court has rejected Bajajs request to stay the operation of its judgement for two weeks till it appeals in the Supreme Court. In parallel proceedings, TVS has applied to the Intellectual Property Appellate Board in Chennai, asking for a revocation of Bajajs patent on twin spark plug technology. T.K. Bhaskar, counsel for TVS and partner at HSB partners, Chennai, said the judgement is in order. There is nothing wrong as the blog is not the sole basis on which the court has laid down its judgement. The courts can use anything that is credible and of sound reasoning in their judgements. http://www.livemint.com/2009/05/28220628/Indian-court-uses-blog-referen.html?pg=2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top
The company fared better during the year as a whole with net sales in 2008-09 (excluding those of CSS and CASL) growing 22.8 per cent to Rs 2,861 crore (Rs 2,331 crore). PAT was 36.5 per cent higher at Rs 383 crore (Rs 280.7 crore). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top Chanchal Pal Chauhan & Pramugdha Mamgain
Exports fell 9% to 5.6 million units during the period despite an overall increase of 24% led by robust demand for small cars and affordable bikes. Indias total tyre production stood at 82 million in 2008-09, with exports accounting for just 6.8%. High-value truck and bus tyres registered a dip of 20% in the fiscal due to slackening demand from various markets and protective policies adopted by some of the countries to safeguard their own domestic industry. Orders fell significantly in major overseas markets such as West Asia and South East Asia, which comprise half of the total exports. Demand slowed down in Europe and South America and in the domestic market too, sales failed to pick up. Tyre demand were down in several market as new cars and commercial vehicles sales plummeted owing to recession, JK Tyres & Industries director (marketing) AS Mehta said. According to Rajiv Budhraja, director-general of the umbrella body for tyre makers, ATMA, if it were not for the substantial fall in the value of the rupee against the US dollar, the impact would have been much harsher. The value of tyres export fell 5% to $490.88 million (Rs 2,400 crore) in 2008-09 from $517.56 million (Rs 2,550 crore) in the previous fiscal. Orders for tractors (rear) and passenger cars tyres slipped 30% and 10%, respectively, in the same period. In light of the losses, ATMA has petitioned the government to benchmark taxation and incentive structure to China with a view to remain competitive in the export markets. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" TYRE SALES RIDE ON REPLACEMENT DEMAND
While importing items on this list requires a licence, end-users like transporters may still import. However, tyre imports have come down by 50 per cent, according to Apollo Tyres chief of India operations, Satish Sharma. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top OIL EASES OFF 6-MONTH HIGH AHEAD OF INVENTORY DATA AP See this story in: The Times of India Singapore: Oil prices eased back from six-month highs on Thursday in Asia as investors looked to a weekly US inventory report for signs of crude demand may be recovering. http://timesofindia.indiatimes.com/Business/Oil-eases-off-6-month-high-ahead-of-inventory-data/articleshow/4588699.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Agencies See this story in: The Economic Times, The Hindu Business Line, The Indian Express Washington: The US government would own 72.5 percent of General Motors under a proposed bankruptcy reorganization that now has support of GM bondholders, a regulatory filing showed on Thursday. http://economictimes.indiatimes.com/US-to-own-72-under-bankruptcy-plan-GM/articleshow/4591312.cms http://www.thehindubusinessline.com/blnus/10281920.htm http://www.indianexpress.com/news/us-auto-parts-supplier-visteon-files-for-bankruptcy/467489/ GM TALKS WITH EUROPE BREAK DOWN, CHRYSLER FUTURE ON HOLD Agencies See this story in: The Economic Times Berlin: The US auto industry faced an uncertain future on Thursday after talks with Germany on the fate of General Motors collapsed in acrimony and as Chrysler awaited further court action on its salvation. http://economictimes.indiatimes.com/News/International-Business/GM-talks-with- FIAT, MAGNA GO HEAD TO HEAD IN RACE FOR OPEL Agencies See this story in: The Economic Times Berlin: Talks on the future of Opel left two bidders in the running on Thursday to buy up the troubled German subsidiary of US auto giant General Motors Canada's Magna International and Italy's Fiat. JAPAN'S TOP CAR MAKERS CONDUCT GLOBAL OUTPUT CUTS Agencies See this story in: The Economic Times Tokyo: Japan's five top automakers have conducted substantial worldwide output cuts amid the global recession, officials said. The margins of the car makers' year-on-year cut ranged from 29.7 per cent to 54.3 percent, according to data released. http://economictimes.indiatimes.com/News/International-Business/Japans-top-car-makers-conduct-global-output-cuts/articleshow/4589197.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top PTI See this story in: Hindustan Times Mumbai: After starting weak, the Indian rupee on Thursday ended stronger by ten paise at 47.60/62 against the dollar, buoyed by firm equity markets amid sustained capital inflows. Initially, the rupee hit the intra-day low of 48.12 immediately after trading resumed this morning on heavy dollar demand from oil refiners and importers. In active trade at the Interbank Foreign Exchange (forex) market, the domestic currency moved widely in a range of 48.12 and 47.59 during the day after resuming weaker at 48.05/06 a dollar from its previous close of 47.70/72 a dollar. Forex dealers said oil companies and importers heavily bought dollars for their monthly import payments as global oil prices moved above USD 63 a barrel in Asian trade. The rupee, however, drew support from the strong equity markets, with the Bombay Stock Exchange Sensex gaining 186 points or 1.32 per cent on fairly heavy short-covering by investors on the back of sustained FII inflows into equity. Oil refiners normally buy dollars at the end of each month to pay for their imports. Meanwhile, the Reserve Bank of India (RBI) fixed the reference rate for the dollar at Rs 47.83 and for the euro at Rs 66.16. The Hindu Mumbai: The Bombay Stock Exchange sensitive index, Sensex, rose for the second day in a row. It gained over 180 points and closed at 14296.01 on Thursday against 14109.64 on Wednesday. L&T advanced by 2.32 per cent after the company announced its fourth-quarter results. The National Stock Exchanges 50-share Nifty also improved by 61 points and closed at 4337.10. Ranbaxy gained 4.24 per cent, Sterlite Industries 3.59 per cent, Bharti Airtel 3.42 per cent, NTPC 2.80 per cent, Tata Steel 2.77 per cent, ICICI Bank 2.67 per cent, Maruti Suzuki 2.54 per cent, TCS 2.29 per cent and Mahindra & Mahindra 2.16 per cent. Tata Motors, however, fell by 3.17 per cent, Grasim by 2.8 per cent, Wipro by 2.68 per cent, Reliance Communication by 2.22 per cent and Reliance Infra by 1.34 per cent. Shares of metal companies, public sector undertakings, banks, capital goods and realty were in the forefront, having scored impressive gains. The healthcare, IT and FMCG sectors, however, came under pressure and showed minor losses. http://www.hindu.com/2009/05/29/stories/2009052955391400.htm INFLATION RATE REMAINS UNCHANGED AT 0.61% The Hindu Business Line New Delhi: The annual wholesale inflation rate remained unchanged at 0.61 per cent for the week ended May 16. That makes it the eleventh consecutive week in which the year-on-year increase in the official wholesale price index (WPI) has been contained below one per cent. Primary articles dearer While inflation in general has eased considerably, prices of primary articles (particularly food items), however, continue to show a disconcerting rise. For the latest recorded week, the annual increase in the index for primary articles stood at 6.22 per cent, while amounting to 8.27 per cent for food article, 12.80 per cent for foodgrains, 8.51 per cent for fruits & vegetables, and 6.41 per cent for milk. On the other hand, the year-on-year inflation rates were provisionally estimated at minus 6.68 per cent and 1.09 per cent for the fuel, power, light & lubricants and manufactured products groups, respectively. These two groups have respective weights of 14.23 and 63.75 per cent in the all-commodities WPI, as opposed to 22.02 per cent for primary articles. But again, even within manufactured products, food products have registered an annual inflation rate of 13.57 per cent for the week under review, with sugar prices correspondingly going up by 29.97 per cent. In other words, the farm sector is the sole reason for inflation not turning negative as yet. All eyes would be now on the south-west monsoon, on whose performance the prospects of a bumper kharif crop depend. http://www.thehindubusinessline.com/2009/05/29/stories/2009052950870700.htm MOODYS CAUTION ON INDIAN ECONOMY The Hindu Business Line New Delhi: Moodys Investor Service cautions India against various challenges in the macroeconomic management and a backlog of structural reforms, even as its ratings outlook for the Indian governments foreign currency rating and local rating is stable. In a new report released, Moodys Vice-President and Senior Analyst, Aninda Mitra, said Indias ratings are based on Moodys assessment of the countrys moderate levels of economic and institutional strength that in turn are bolstered by a large, rapidly growing and well-diversified economic structure. The key arguments advanced in the report deal with the constraint exerted on Indias economic potential by domestic imbalances and financial fragilities; the risk posed to economic performance by the confluence of potentially weak external liquidity and the persistence of government deficits. These shortcomings coupled with sectoral imbalances, low rural income and still-pervasive infrastructural bottlenecks constrain more rapid improvements, it said. While economic liberalisation and de-licensing have facilitated a strong productivity response and led to greater competition, capacity building and growth in several industry sectors, fiscal policy predictability and credibility have worsened, the report said. The stable outlook on the ratings has recently faced growing pressure, mainly due to substantial deterioration in the fiscal position amidst a rise in Indias dependence on foreign capital flows to drive its investment cycle, it added. Stating that a time of a sharp deceleration in private investment and falling capacity utilisation, the much higher level of fiscal deficit is not expected to result in price pressures or credit crowding, the report contends that with private sector resuming growth from latter part of 2009, the availability of domestic financing could be crowded out if the large fiscal easing is not unwound quickly. It further said if the new government is able to re-commit itself to fiscal restraint in a credible manner or alter the financing mix of the deficit (to include greater reliance on disinvestment), such developments could better support our views about the institutional framework underpinning macroeconomic management. Pointing out that large government borrowing needs have slowed the development of private bond markets for domestic corporations, the report said this has driven greater reliance on equity issue and foreign borrowings. Consequently, disruptions in global or local capital markets affects private corporations fund raising capabilities much more than at comparable emerging market countries with more fiscal space, it said. While appreciating statutory and regulatory bodies for being effective and less heavy- handed than in earlier decades, the report highlights slow and cumbersome bureaucracy. It said the overall quality of governance in the context of policy implementation is poor and in particular, the provision of public goods and services has suffered. http://www.thehindubusinessline.com/2009/05/29/stories/2009052951901000.htm Last Financial closing
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