Indian Auto Industry Update August 24, 2009

 

INDIAN AUTOMOBILE INDUSTRY Daily Updates on: Insurance...Banking...Metal & Minerals...Infrastructure....Energy This Update also carries stories featured on Sunday, August 23, 2009
INDUSTRY Tata Motors confident of growth INTERVIEWS/FEATURES Small cars, big buzz CARS, SUVs, MUVs Maruti Suzuki looks to grow based on exports Rear View: Automatic car sales shift into top gear Volvo Cars content with direct imports model for India GM India to miss deadline for capturing 10 pc mkt share GM to focus on used-car biz; plans to expand retail network BMW to decide on capacity expansion in 2011 COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS Honda Motorcycles and Scooters all set to stun rivals COMPONENTS JBM forays into education biz; aims Rs 1,000 cr revenue Mando India to supply components to global auto majors; plans to raise capacity Industrial engines revving up	ALLIED INDUSTRIES Reopen hopes rise at Dunlop High-security number plates to be introduced this financial year FINANCE & INSURANCE Banks festival offer on home, car loans OIL, LUBRICANTS & ALTERNATIVE FUELS Auto LPG needs Govt push for higher penetration Oil climbs to new 2009 high INTERNATIONAL NEWS Honda to sell electric cars in US: Report Germany ramps up pressure on GM over Opel GM deal on Opel still possible: German Econ Min GM doing its bit to keep German Opel unit Toyota falling behind in the race to go electric ECONOMY & FINANCE Fake currency hurting economy GDP likely to clock 7% in 2009-10: CII
INDUSTRY                                                                                                                                  Go To Top TATA MOTORS CONFIDENT OF GROWTH The Hindu (Web & Print Edition) (Aug 23)   Coimbatore: Tata Motors that has been keeping pace with the 8 per cent growth recorded by the automobile industry is confident of sustaining the same.   S. Krishnan, vice-president of Tata Motors-Commercial (Passenger Cars Business Unit) told reporters here after inaugurating GEM Motors, a dealership of Tata Motors at Thudialur on Mettuppalayam Road that the possibility for a highest growth rate of 20 per cent that was witnessed in 2005-07 was not possible.   Revival Asked whether the pick up in the sale of commercial vehicles showed signs of progress in economy, Mr. Krishnan said: We have seen signs of revival in the market and financing of vehicles which was an issue in the market place looks that much better now.   In the 2009-10 fiscal, the passenger car industry declined by 0.5 per cent but since July the car market grew by about 20 per cent in July, showing signs for optimism for the months to come.   To a question as to whether the company was working on re-doing or phasing out its mid-segment Indigo models that showed a 20 per cent decline in sales in July this year compared to the same month last year, Mr. Krishnan said it was nearly six years since the model was launched.   Sedan Tata Motors has brought into the market a new compact sedan Indigo CS that was the highest selling and said that it was the only sedan vehicle in the sub-4 meters.   Responding to a query on the expected competition in the B+ and C segments in the wake of the proposed launch of models by other players, Mr.Krishnan said that from about four companies just about a decade back, India now has 28 car manufacturers/importers.   Tata Motors has products, some own and some from the Fiat, and as competition hot ups it would launch newer products, Mr. Krishnan pointed out. http://www.hindu.com/2009/08/23/stories/2009082354820700.htm  Go To Top
INTERVIEWS/FEATURES                                                                                                     Go To Top SMALL CARS, BIG BUZZ Sumant Banerji Hindustan Times (Web & Print Edition) (Aug 24) New Delhi: The buzz around new brands and brand extensions in the small car market seems to have made an impact on the bruised and battered car market. Small cars are leading the charge towards higher sales.   Spurred by a gamut of launches, from the wonder car Tata Nano to the path-breaking Honda Jazz and Hyundai i20, small cars have scripted the revival story from the depths of a slowdown in the last six months.   While it may not be possible to say that Nano has directly either triggered greater interest in the small car segment or started a new sub-compact segment, the fact is that the number of brands in the small car market that play either on lower price or a slew of rich features, are doing everything they can to make their presence felt.   Just look at the number of brands in the fray. From Indian players like Tata to Bajaj, which has announced its intention to launch a small car, to India-strong Maruti Suzuki, to a number of international car makers like General Motors, Ford, Hyundai, Volkswagen and Toyota, the interest in the small car market in India is noticeable.   Volkswagen, Toyota and Ford, which have so far been relatively dormant due to the lack of a small car, are readying their products within the next six months. We have been in India for a long time now but our market share has been low because we are not part of the voluminous segment, says Michael Boneham, managing director, Ford India. With our small car, we are targeting the segment that brings the chunk of the numbers in the market.   The small car phenomenon is not unique to India. Globally, there is a shift towards small cars as they not only cost less, but also are more fuel efficient. India, which is anyway a big small car market, is no different, says Dilip Chenoy, director-general, Society of Indian Automobile Manufacturers.   Lower income countries, including India, make up approximately 53 per cent of the global population, but account for only 13 per cent of car sales. Low-cost to ultra low-cost cars are expected to drive market penetration in such countries.   Mayank Pareek, executive officer (marketing and sales), Maruti Suzuki, says, Small cars are peppier, easy to drive, economical to maintain and use and also cost less. There are many positives attached with it and that is why in India, where per capita penetration of cars is low, small cars are such a hit.   Industry observers point out that while the Nano hasnt exactly seen a slew of competitive launches being announced, it has opened up awareness that India can be an attractive manufacturing hub for making compact cars. Plus, it has undoubtedly set a new benchmark in low-cost cars.   While the small car segment has beckoned to Indian consumers with more choices, the tried and tested brands have continued to do well, such as Maruti Suzukis small cars and Santro. Maruti Suzukis Pareek says, In times of uncertainty, there is a trend towards tried and trusted brands that offer a good value-for-money package. Brand assurance is also a driving factor.   Not all car manufacturers believe that good value for money needs to mean cheap, however. A number of small brands Skoda Fabia, Hyundai i20 and Honda Jazz, for example come for over Rs 6 lakh and offer goodies such as airbags and anti-lock braking systems as a standard.   While Nanos numeric contribution to the small car success story is a mere 2,475 units sold in July, it is expected to play a major role going forward and expand the customer base further. Due to its production and supply constraints, the car attracted a very high booking amount but analysts feel once the Sanand factory in Gujarat is operational, the car will be able to reach out to the masses better. http://www.hindustantimes.com/News/auto/Small-cars-big-buzz/Article1-446270.aspx  Go To Top
CARS, SUVs, MUVs                                                                                                                Go To Top MARUTI SUZUKI LOOKS TO GROW BASED ON EXPORTS Samar Srivastava mint (Web & Print Edition) (Aug 24)   New Delhi: Maruti Suzuki India Ltd, the countrys largest car maker, plans to increase its thrust on exports in the next few years.   Exports have to be a major part of our plan going forward, said R.C. Bhargava, chairman, Maruti Suzuki India, on the sidelines of the signing ceremony of the companys research and development (R&D) centre in Rohtak, Haryana.   Bhargava cited growth in exports of small cars as fuel prices rise and emission norms become stricter. He declined to specify the number of cars the company hoped to export in the years to come.   Marutis R&D centre, spread over 700 acres, will be the hub for all of Suzuki Motor Co.s small car research. Maruti plans to launch its first made in India car by 2012. Cars developed for India would also be exported overseas, according to Bhargava. In the last fiscal, Maruti registered its highest export numbers in its 25-year history. The company exported 70,023 units, a growth of 32.1% compared with the year earlier.   This year, the company plans to export 120,000 units. The higher numbers are mainly as a result of the A-Star, which the company launched in November and began exporting to Europe from January. http://www.livemint.com/2009/08/23225550/Maruti-Suzuki-looks-to-grow-ba.html   Go To Top     REAR VIEW: AUTOMATIC CAR SALES SHIFT INTO TOP GEAR John Sarkar The Economic Times (Web & Print Edition) (Aug 23)   New Delhi: Its your left leg they want. The right can still hang about for the brake and gas pedal. A clutch of carmakers in the country is slowly but steadily pushing the sales of automatic transmissions. Earlier it used to be the domain of small market niches, but with companies such as Honda Siel, SkodaAuto, Hyundai Motor, Volkswagen, BMW and Mercedes-Benz spoiling buyers with an exciting array of models, the sales graph of automatic cars has finally started moving north.   Though it might not be a huge shift yet due to the lack of demand for automatic transmissions in the small car segment (automatics are significantly more expensive than manual variants), rising sales in C and D segments is a positive sign, according to carmakers. It all started when Maruti Suzuki India, which sells more than half the cars sold in the country, imported customised automatic Zens (hatchback) for the physically disabled. But now, it is the ease of driving which is tempting buyers. Honda, Hyundai & BMW too join the race Honda Siel Cars India (HSCI), one of the first car companies to introduce an automatic variant in the C segment, is witnessing brisk sales of its automatic transmissions now. According to Jnaneswar Sen, V-P, marketing at HSCI, the previous generation City was doing 5% for automatic transmission (AT) but now nearly 14% of the Citys sales come from it. Also, 51% of the Accords sold in the country are AT variants. This perhaps explains the growing maturity of the Indian car buyer who has perhaps realised that choosing an automatic no longer means big sacrifices in mileage and performance . Taking a cue from Hondas City, Korean carmaker Hyundai too launched an automatic version of its C segment car, Verna. Another case in point: Bavarian Motor Works (BMW), which posted a 14% jump in sales here, during January-July . Though available in manual transmission (MT) abroad, all BMW cars sold here comes with AT. Says a BMW spokesman: It was a conscious decision to launch our cars here only in AT. Before we came here we did an extensive survey that revealed that for owner driven cars in our segment, buyers preferred AT. Also, for chauffeurdriven cars, AT reduces the risk of wear and tear of the vehicle in the long run since drivers cant fool around with the car much. Similarly, not far behind is another German automobile marquee Mercedes-Benz . Currently, the C-Class , which roughly constitutes around 40% of the companys total sales here, is split between AT and MT in 87% and 13% respectively. Wilfried Aulbur, MD & CEO at Mercedes-Benz India believes that the rise in sales of AT cars has been mainly due to the demand from buyers as well as internal strategies of companies. For our entry-level product segment, we have seen a growth in AT from 60%-80 % in a span of seven years, Mr Aulbur says. This growth is significant because in the overseas market where majority of sales comprises of ATs, the price benchmark is the AT, while here the price is set on the manual, which makes the AT appear expensive. But nonetheless, carmakers such as Volkswagen (VW) and SkodaAuto are not finding it difficult to sell the AT variants of its cars here even with a huge price difference between both. Says a VW dealer in the Capital: The MT Jetta is almost Rs 2 lakh cheaper than the AT variant. But almost 60% of the Jettas that we sell are AT. The extra goodies that any AT variant comes with also help. For instance, the Jettas AT variant comes with special upholstery, touch screen stereo et al. In case of the more expensive Passat, the dealer mentioned that ATs comprise of almost 50% of its total sales. And VWs sister company SkodaAuto, is also not doing too bad either . Though the Superb is available only in the AT version, sales of AT Lauras have gone up by almost 10% in a very short while. Nearly 20% of Lauras sales now come from the AT version. And according to Ashutosh Dixit, Sr GM, (sales & network development), SkodaAuto, competitive pricing has also helped. The price difference between manuals and automatics has come down over the years. Also, better technology such as advanced transmissions has also helped us to convince customers about the advantage of ATs, he says. In the end, it all boils down to faster gear shifts. And even here, machines seem to be doing all the talking. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News-by-Industry/Automatic-car-sales-shift-into-top-gear/articleshow/4924040.cms   Go To Top     VOLVO CARS CONTENT WITH DIRECT IMPORTS MODEL FOR INDIA The Hindu Business Line (Web & Print Edition) (Aug 23)   Mumbai: Volvo Cars, the Swedish unit of Ford Motor Company, has no immediate plans of setting up a manufacturing facility in India.   Mr Paul de Voijs, Managing Director, Volvo Car India, told Business Line that because of the global slowdown, there was enough spare capacity across the companys plants in China, Malaysia, Thailand, Belgium and Sweden. There is no need to create fresh capacity. By the end of the day, there should be a lot of economic sense in investing in a new plant, he added.   In Volvos case, this makes more sense because it does not have the volumes yet to justify setting up a facility in India. In 2008, it sold 100 cars and is still behind the likes of Mercedes and BMW which, incidentally, have their own plants rolling out over 1,500 cars annually.   Volvo Car India has, therefore, opted for the direct import route of models such as the S80 and the XC90 with plans to bring the XC60 and the S60 in the coming months.   The biggest drawback with CBUs (completely built units) is the import duty of nearly 110 per cent which translates into a high-landed cost. In Volvos case, the two models retailed here the S80 and the XC90 come with price tags of Rs 40 lakh and Rs 55 lakh each (ex-showroom, Mumbai).   Mr de Voijs said that despite this high costing structure, it still made sense for the company to continue with direct imports. Setting up a plant would mean investments in people and machinery, besides chalking out a localisation agenda with suppliers which, by itself, would be a challenge for a niche luxury brand such as Volvo. From the companys point of view, it is a lot simpler to just opt for the CBU route instead, even if it means a high price tag for the vehicles.   Volvo Cars has been around in India barely two years and, as Mr de Voijs said, is seeing its future with a long-term perspective. More importantly, multinational car companies have been slow on their investment plans because of the recession.   We are working on a steady plan which could take a couple of years more before it is in place. The first year was spent in observing the market and the second in expanding the dealer network. We could possibly explore the option of importing completely knocked kits but volumes are critical, Mr de Voijs said.   According to him, India had tremendous potential as a luxury car destination though cars in this category accounted for barely 0.5 per cent of the overall market. Interestingly, a decade ago this was equally true for Russia which has since grown to five per cent.   The same story could be replicated in India and I would not be surprised if luxury cars grew to three per cent (of the market) in five years, Mr de Voijs said.   Volvo Cars has also been in the news what with Ford likely to sell the Swedish brand in the next two-three months. Indications are that there are some serious bidders in Sweden (one of which is the engineering union at Volvo Cars while the others include two Chinese automakers) and it would only be a matter of time before the shift in ownership happens. Either way, it would not impact Indian operations since the business model is only direct imports for the moment. http://www.thehindubusinessline.com/2009/08/23/stories/2009082350860200.htm   Go To Top     GM INDIA TO MISS DEADLINE FOR CAPTURING 10 PC MKT SHARE PTI See this story in: The Economic Times (Web Edition), The Indian Express (Web Edition), Yahoo India (Web Edition), Business Standard (Delhi Print Edition), Hindustan Times (Delhi Print Edition) (Aug 24)   New Delhi: Even though bankruptcy-hit US auto giant has been reiterating that its Indian business will remain unaffected, the company will miss its 2010 deadline for achieving 10 per cent share in the car market here. "The economic downturn has forced us to go for a change of plans. Instead of 2010 as the timeline for securing 10 per cent share in the Indian car market, we are now re-scheduling the target till 2011," General Motors India President and Managing Director Karl Slym said. The company is, however, optimistic of achieving a 10 per cent growth rate in sales this year over last year's figures. GM India had sold 65,702 units in 2008. "With the newly-launched LPG Spark which has already sold 600 units, besides the planned launch of Cruze and the mini- car, we are hopeful of a big growth in 2010," Slym said. He, however, said the missed deadline would not be any big setback. "We will continue to offer the best models and best services to our customers in the India. With the economy showing signs of bounce-back, we are optimistic about the future," Slym added. Earlier in June, General Motors had filed for bankruptcy protection in the US, which excluded the Indian operations, and later eventually came out of it with a trimmer new GM. Since then, it has been maintaining that the business in India would remain unaffected and profitable. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/GM-India-to-miss-deadline-for-capturing-10-pc-mkt-share/articleshow/4924805.cms http://www.indianexpress.com/news/gm-india-to-miss-deadline-for-capturing-10-mkt-share/505929/ http://in.biz.yahoo.com/090823/50/bau2lf.html   Go To Top     GM TO FOCUS ON USED-CAR BIZ; PLANS TO EXPAND RETAIL NETWORK PTI See this story in: The Economic Times (Web & Print Edition), The Indian Express (Web Edition) , Yahoo India (Web Edition), mint (Web Edition), Business Standard (Delhi Print Edition) (Aug 24)   New Delhi: General Motors India is working on increasing its used-car business 15-fold and will push its second-hand cars through existing as well as new dealerships across the country. The company has 17 outlets of pre-owned cars -- Chevrolet-OK -- and plans to increase that to 50 by the end of this year. Now, the company is working on extending the business to all its existing dealerships that have been dealing only with new vehicles so far. "We started the pre-owned cars outlets in March-April and already it has started to show results. Last month, we exchanged over 100 cars through these and we hope it will continue to grow in numbers," General Motors India President and Managing Director Karl Slym told PTI. "We currently have 203 dealers across the country and our plan is to increase that to 260 by the end of 2009. In line with this, we are also looking to take the pre-owned cars outlets to all our dealerships," Slym said. He, however, did not give any time-frame for undertaking this operation. The company had in June announced extension of its 3-year or one lakh km warranty scheme to used-car owners. The cars offered through these outlets go through a 110-point checklist by GM India trained engineers, besides a detailed history check. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/GM-to-focus-on-used-car-biz-plans-to-expand-retail-network/articleshow/4924533.cms http://www.indianexpress.com/news/gm-to-focus-on-usedcar-business/505937/ http://in.biz.yahoo.com/090823/50/bau2li.html http://www.livemint.com/2009/08/23111204/GM-to-focus-on-usedcar-busine.html   Go To Top     BMW TO DECIDE ON CAPACITY EXPANSION IN 2011 PTI See this story in:  The Economic Times (Web & Print Edition), The Financial Express (Web & Print Edition), Business Standard (Delhi Print Edition), Hindustan Times (Delhi Print Edition) (Aug 24)   New Delhi: German luxury car maker BMW will consider increasing the production capacity of its Indian manufacturing facility in 2011, only after the sales from the plant crosses the 3,000-units mark next year. "If the market grows, we are ready to ramp up production and will consider further investment. At present, our capacity is sufficient to meet the demand till next year," BMW India President Peter Kronschnabl said. BMW India, the wholly-owned subsidiary of BMW Group, has a manufacturing facility in Chennai with an annual capacity of 3,000 units in single shift. Kronschnabl said the company is expecting its total sales (including imported models) to cross 3,000 units within this year, of which about 75 per cent is likely to come from the two models- 3-Series and 5-Series, assembled in Chennai. "As the trend indicates, we will be able to sell 3,000 units of 3-Series and 5-Series cars in 2010. After that we will have to consider capacity expansion," he added. Besides these two luxury sedans, the company also sells 6-Series and 7-Series in the luxury segment, X3, X5 and X6 in sports utility segment and M3, M5 and M6 in the convertible sports coupe category as completely-built-units (CBU) in India. The Indian luxury car market, which stood at 7,400 units last year, is expected to grow to about 9,000 units this year to touch the 10,000-mark in 2010, Kronschnabl said. Meanwhile, to expand its product portfolio, BMW India has plans to launch a two-seater roadster- Z4 on the eve of Deepawali in October, which is expected to be priced in the range of Rs 50-60 lakh. The company will also unveil a new product at the upcoming auto expo in Delhi in January next year, Kronschnabl said without providing details. He, however, ruled out bringing in its iconic small car 'Mini' to India citing high price tag it would have due to the fully import route. On sourcing of components from India for its global operations, Kronschnabl said, "We have closed negotiations with couple of suppliers for a few areas, including forging and casting, but we haven't signed any major contract. By the end of 2009, we can give a clear picture." The company has posted a 14 per cent jump in sales during the January-July period at 2,008 units compared with 1,763 units in the same period last year. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/BMW-to-decide-on-capacity-expansion-in-2011/articleshow/4924584.cms http://www.financialexpress.com/news/bmw-india-to-decide-on-capacity-expansion-in-2011/506097/  Go To Top
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2/3 WHEELERS                                                                                                                      Go To Top HONDA MOTORCYCLES AND SCOOTERS ALL SET TO STUN RIVALS John Sarkar The Economic Times (Aug 23)   New Delhi: Its time for Indian bike makers to roll up their sleeves. The Japs are at it again. This time, Honda Motorcycles and Scooters India (HMSI), is planning a blitzkrieg on the Indian two-wheeler market. Starting with the launch of a mass-market bike in January next year, HMSI has plans to launch more than four models in the next two to three years, including a 250cc motorcycle in 2011. According to an HMSI official who did not wish to be named, the mass-market bike is codenamed the KWSA (A stands for any model in the development state). It is a 110-cc motorcycle with a radical rear grip, on which HMSI is betting heavily to break the stranglehold of market leader Hero Honda. HMSI over a very short period of time has done well to wrest away 14% of the market share from its rivals with a sizeable share in the gearless scooter segment. But Hero Honda, which sells more than half of the motorcycles sold in this country, has been unshakeable in the entry-level and executive segments (100cc-135cc) so far, with hot selling models such as the CD-Dawn, Splendor and Passion holding fort.   But HMSI is not done yet. It plans to up the ante by launching a new version of its 125-cc motorcycle, Shine. Then, it has plans to follow it up with a new variant of the 125-cc Stunner. This comes on the back of the fuel-injected Stunner that the company launched just recently. The new Stunner will have cosmetic changes and certain components will be finished in matte black, says the HMSI official. Then, on the cards there is also a new version of the companys 150-cc bike, Unicorn. Says Vaishali Jajoo, an auto analyst with Mumbai-based brokerage firm, Angel Broking: HMSI has been very successful in the scooter segment so far. But the executive motorcycle segment (125cc) is growing faster than the entry-level segment now. So two-wheeler makers will be focusing on this segment a lot more now. But more importantly, it will be HMSIs 250cc model that will have a very big role to play, according to the HMSI official. This bike will be manufactured here and not be imported as a CBU, in contrast to other two-wheeler makers such as Bajaj Auto which has plans to import bikes which are 250cc and above. And HMSI might also use India as a sourcing hub for the motorcycle, to supply its components to overseas markets such as Thailand, where the bike will also be supposedly sold. But when contacted this is all an HMSI spokesman had to say: The new Stunner has already been launched in May this year and the mass segment bike is scheduled to be launched next year. We will keep you updated on the other launches as and when we plan them. But to prop up its plans, HMSI has already started increasing its manufacturing capacity. The motorcycle plant of HMSI at Manesar, which has a capacity of churning out 2000 units everyday (60,000 units in a month), has got a facelift with a new Marshall conveyor belt installed. This belt will help increase productivity by around 100%, which means another 60,000 units per month. Similarly, a new conveyor belt is also waiting to be installed at HMSIs scooter plant that produces 2000 units per day. Employees at HMSI expect the output of the scooter plant to go up by another 2000 units once the belt is installed and ready. So, is it finally time to say, Tora! Tora! Tora! Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News-by-Industry/HMSI-all-set-to-stun-rivals/articleshow/4923744.cms  Go To Top
COMPONENTS                                                                                                                      Go To Top MANDO INDIA TO SUPPLY COMPONENTS TO GLOBAL AUTO MAJORS; PLANS TO RAISE CAPACITY T. Murrali The Hindu Business Line (Aug 23)   Chennai: Chennai-based Mando India Ltd will soon add global passenger car manufacturers to its clientele.   Mando India is a 67:33 joint venture between Mando Corporation of Korea and the Rs 2,800-crore Anand Group based in Delhi.   The company has been identified by Mando Corporation to supply brake and suspension components for several of its global OEM customers including Volkswagen and Renault.   The Rs 355-crore Mando India manufactures brake and suspension systems and is a single source for Hyundai Motor India. It has a technical licence agreement with Continental Teves of Germany to make brake systems for Ford India and Mahindra Renault.   The company said that business was buoyant and sales till July (Rs 225 crore) accounted for 63 per cent of last years sales. Mr Yeong Bok Yoon, Managing Director, Mando India, told Business Line that the new business gives the company a foothold in the overseas market.   To meet the new export business, the company plans to increase capacity to one million sets from the 0.8 million sets a year. The new plant will come up in the existing premises and the company is working out the investment required for the project, he said.   Mr V. Madhavan, Deputy Managing Director, Mando India, said the plant was chosen since the internal rejection rate 3,000 parts per million (ppm) was the lowest among Mandos 15 plants across the globe.   This was due to the initiatives taken by the company to improve employee involvement, which helped the company get the Great Place to Work award recently from the Great Place to Work Institute, India. http://www.thehindubusinessline.com/2009/08/23/stories/2009082350870200.htm   Go To Top     INDUSTRIAL ENGINES REVVING UP Sagar Bhadra The Hindu Business Line (Aug 23)   Mumbai: Industrial engine manufacturers, who primarily supply to the construction equipment sector, are seeing a revival in demand following a trickle down effect from the Centres infrastructure spending of around Rs 1 lakh crore.   Production is back at the 2007-08 record levels, says Mr S. Venkatasubramanian, Executive Director (Manufacturing), Simpson, which supplies engines for forklifts, trucks, mobile cranes and other construction equipment.   The company produces 700-800 industrial engines a month, about three-and-half times 250 per cent higher from the March 2009 levels.   Demand for industrial engines is, however, not expected to outstrip supply, with Simpsons utilisation rate still at 40-50 per cent due to additional capacity in 2008.   We can add one more shift to our production subject to demand, Mr Venkatasubramanian said.   Kirloskar Oil Engines, another major manufacturer of industrial engines, is also in the midst of a buoyant demand phase from the construction equipment industry.   Production is on in full swing and we are making 4,000 engines a month, significantly higher from the 500-odd units in the first quarter of the fiscal, said Mr Rajiv Bandivadekar, Business Head, Global Agricultural & Off-Highway.   Based on the current trend, the company expects to reach its production peak of 2008 by the end of next year.   Easy availability of credit to construction companies has played a role in boosting demand for construction equipment, and consequently, industrial engines, he added.   Nearly 45 per cent to 60 per cent of construction is done by small to midsize companies which require stable access to credit. http://www.thehindubusinessline.com/2009/08/23/stories/2009082350920200.htm   Go To Top     JBM FORAYS INTO EDUCATION BIZ; AIMS RS 1,000 CR REVENUE PTI See this story in:  Business Standard (Aug 24)   New Delhi: At a time when the country's auto makers are trying different ways to beat the slowdown blues, components maker JBM Group is venturing into the educational sector to meet the growing demand for auto designers and engineers.   The Rs 2,700-crore group will start technical education programmes in association with five other institutes in the national capital region to train automotive designers and engineers. The company is aiming to garner Rs 1,000 crore from the new venture by 2015 and expand to at least 100 institutes across the country over the next five years. "The automotive and engineering industry requires about 10,000 designers, while the current availability is only about 1,000," JBM Group Executive Director Nishant Arya told PTI.   "So, there is a huge gap between demand and supply and this needed to be filled up. To start with, we are targeting to training 2,000 students in this fiscal," he added. Without providing the name, he said the group would start four courses within 10 days at five institutes in the NCR.   When asked about the business opportunities the company sees in the venture, Arya said: "We are investing about Rs 10 crore in the first five centres and we are aiming for a revenue of about Rs 20 crore this fiscal." http://www.business-standard.com/india/news/jbm-forays-into-education-biz-aims-rs-1000-cr-revenue/71461/on  Go To Top
ALLIED INDUSTRY                                                                                                               Go To Top REOPEN HOPES RISE AT DUNLOP Sambit Saha The Telegraph (Aug 24)   Calcutta: The Dunlop management is looking at reopening the Sahagunj factory in Bengal before the Pujas, bringing cheer to its 1,189 workers. Dunlop has agreed to meet the demands of West Bengal State Electricity Distribution Company Ltd (WBSEDCL). The power utility had stopped supply to the unit as the tyre company owed it Rs 13 crore.   The company will clear the dues over a period of nine years and the power distributor will resume supply. Though the management had lifted suspension of work at the unit in March this year, production could not take off because of a lack of power.   Bengal industry minister Nirupam Sen told The Telegraph that negotiations between the Dunlop management and the state power body was on a positive track. I am hopeful that Dunlop will reopen before the Pujas, Sen said.   It will take about two weeks to start production once power starts flowing. The Durga Puja is in the last week of September. Dunlop chairman Pawan Ruia declined to comment on whether the two parties had agreed to bury the hatchet.   However, he had hinted that there could be good news next week after railway minister Mamata Banerjee chided him for not opening the plant at a meeting with industrialists in Calcutta on Friday. Last year, Ruia had met Banerjee well before her fortunes rose in the general election to seek her suggestions on the companys revival.   Sources said the industry minister took the initiative to bring the Dunlop management and the WBSEDCL closer.  I am trying to do my job. But the state unit is run by an independent board which will take its own decision. I am hopeful of an out-of-court settlement soon, Sen said.   Dunlop took WBSEDCL to court for freezing the connection. The company is expected to withdraw the case if the two arrive at a solution.  The tyre company had run up an electricity bill of up to Rs 15 crore even when the plant remained closed under the erstwhile Chhabria management between 2000 and 2005. During that period, power was consumed by local families and small industries around the plant. The power distributor, however, never disconnected the supply, fearing a political backlash.   After Ruia took over Dunlop in 2005, the new management initially refused to clear the dues. Later, it agreed to pay over a period, but with a moratorium in the beginning, which the state body turned down.  When Dunlop failed to pay the current bill twice, WBSEDCL stopped supply on both the occasions. The company then went to court in January 2008 to seek redressal. The issue of old dues, which then came down to Rs 13 crore after Dunlop paid a portion, was also brought up in the courts. http://www.telegraphindia.com/1090824/jsp/business/story_11400723.jsp   Go To Top     HIGH-SECURITY NUMBER PLATES TO BE INTRODUCED THIS FINANCIAL YEAR Nidhi Sharma The Pioneer (Aug 24)   New Delhi: The much-delayed move to introduce high security number plates for cars all over the country has got a new fillip. After missing numerous deadlines, the last one being August 5, the Ministry of Road Transport and Highways (MoRTH) has decided to hold a meeting with all States and stakeholders to introduce these high-security plates all over the country within this financial year. Nine years after the move was first conceived to reduce car thefts and illegal sales, high-security registration plates (HSRPs) have been introduced only in Meghalaya and Sikkim. Goa has tried to implement it but a section of Ministers are opposed to it. No other State has taken any initiative to introduce these plates. The move has got a boost as Minister of Road Transport and Highways Kamal Nath has taken a fresh interest in this. After the deadline set by Supreme Court was missed by the States, Nath in a meeting directed Secretary (Road Transport) Brahm Dutt to hold talks with State Governments to push forward the initiative. Sources said Nath has also taken up the issue with Chief Ministers on a personal level to know the problems that the States could face in implementing the policy. The high-security registration plates have a non-replicable chromium hologram, laser numbering by registered agencies and embossed numbers. The rear registration plate is fitted with a non-reusable snap lock so that if it is forcibly removed the lock breaks and it would clearly show that the car was stolen and its number plate tampered with. A chromium-based third registration plate is stuck to the windshield in form of a sticker. If this is tampered with it self destructs. The States have so far been reluctant to introduce the hi-tech plates because of few vendors who offer this. So far the Ministry has identified 18 vendors and certified them to offer the registration plates. A senior Ministry official said: The Centre has no role to play in the implementation. Our role was restricted to notification of the new rules for introduction. But we need to ensure that States implement this citizen-friendly policy. The move has been fraught with a number of court cases since 2001. The date of implementation was shifted from time to time initially due to availability of few vendors and thereafter to a number of court cases filed in Supreme Court and different High Courts (Delhi, Punjab and Haryana, Himachal Pradesh, Jammu & Kashmir, Rajasthan, Uttar Pradesh, Madhya Pradesh, Maharashtra, Kerala, Meghalaya, Tripura, Goa, West Bengal, Tamil Nadu, Assam, Karnataka and Sikkim. http://www.dailypioneer.com/197700/High-security-number-plates-to-be-introduced-this-financial-year.html  Go To Top
FINANCE & INSURANCE                                                                                                   Go To Top BANKS FESTIVAL OFFER ON HOME, CAR LOANS The Hindu (Aug 23)   Tiruchi: Indian Bank has introduced a festival offer on home and car loans which would be in force till October 31. Under the offer, home loans would be offered at an interest rate (fixed for first three years) of 8.25 per cent for loans up to Rs.20 lakhs, 8.50 per cent for loans up to Rs.30 lakhs, 9 per cent for loans up to Rs.40 lakhs and 9.50 per cent for loans above Rs.50 lakhs.   For car loans, the interest rate would be 10 per cent for loans up to Rs.10 lakhs with a repayment period of three years and 10.25 per cent for loans with repayment period up to five years, according to a Press release from R. Ravi, General Manager and Circle Head, Indian Bank, Tiruchi. http://www.hindu.com/2009/08/23/stories/2009082358310300.htm  Go To Top
OIL, LUBRICANTS & ALTERNATIVE FUELS                                                         Go To Top AUTO LPG NEEDS GOVT PUSH FOR HIGHER PENETRATION The Pioneer (Aug 23)   New Delhi: Industry body of Indian Auto LPG Coalition (IAC) demanded tax incentives and exemptions from Central and State Governments to ensure that the penetration of green fuel is higher. Auto LPG is much costlier in India compared to domestic LPG because of various types of taxes of around 30 per cent. We need active support of Government and industry alike to encourage Auto LPG use, said General Secretary of Indian Auto LPG Coalition Suyash Gupta. Central & State Governments need to push this alternate fuel through tax incentives and exemptions, which Governments worldwide provide, to check pollution through transportation fuels, he added. The other challenge facing the industry is the massive diversion of the subsidized domestic LPG cylinder, which unofficial estimates quote, is possible around about four times the sales at LPG Filling Stations, which do around 300 TMT. This diversion of the domestic cylinder not just causes a dent to the government revenue, is also a huge safety risk, since these cylinders are not meant for automobile usage. http://www.dailypioneer.com/197486/Auto-LPG-needs-Govt-push-for-higher-penetration.html   Go To Top     OIL CLIMBS TO NEW 2009 HIGH The Indian Express (Aug 23)   New York: Oil prices jumped to a new high for the year after Federal Reserve Chairman Ben Bernanke said that the US economy is nearing a recovery and other economic data backed him up.   Benchmark crude for October delivery surged USD 1.81 to USD 74.72 after Bernanke spoke at an annual Fed conference in Jackson Hole, Wyoming.   By midday, oil was trading at USD 73.91, topping the previous annual high of USD 73.23 set on June 11.   Oil started climbing early in the morning after financial information company Markit said its composite purchasing managers' index showed the European economy was stabilizing.   "If Europe's coming out of recession, the euro could get even stronger," analyst Phil Flynn said. "That means more demand for oil."   And the dollar did fall against the euro to end the week, effectively making dollar-based oil cheaper across the globe.   That created its own momentum and drew a lot of investor money into crude, meaning the price for gasoline and other fuels will likely move up as well.   US gasoline prices have flattened and few expect a major run on prices as the driving season winds down.   Retail gas prices were almost unchanged, rising a hundredth of a cent to a new national average of USD 2.625 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. http://www.indianexpress.com/news/oil-climbs-to-new-2009-high/505656/  Go To Top
INTERNATIONAL NEWS                                                                                               Go To Top HONDA TO SELL ELECTRIC CARS IN US: REPORT Agencies See this story in: The Economic Times, The Hindu Business Line, Business Standard, Hindustan Times, The Times of India (Aug 24)   Tokyo: Honda Motor Co plans to introduce electric vehicles in the US early next decade, joining a growing number of automakers vying for the lead in clean technology development, local media reported Saturday. Japan's second-biggest car maker, which has focused on gas-electric hybrids so far, is building an all-electric prototype to be unveiled at the Tokyo Motor Show in October, according to the Nikkei financial newspaper. It said Honda would begin sales of electric vehicles in the United States in the first half of the decade. A Honda spokesman said the Tokyo-based company has begun to develop electric vehicles, but has not decided on a release date. He declined to be named, citing company policy. Honda released its new Insight earlier this year, billing it as the cheapest gas-electric hybrid on the market, to compete with Toyota Motor Corp.'s top-selling Prius. But with US environmental regulations expected to toughen, automakers are stepping up efforts to release zero-emission cars. Honda has leased a small number of its FCX Clarity hydrogen fuel cell vehicles to customers in Southern California since last year. Their high development cost, however, prompted Honda to consider adding electric cars to its lineup, the Nikkei said. Among its rivals, Nissan Motor Co. is set to begin selling its Leaf electric hatchback in the U.S., Europe and Japan next year. Toyota Motor Corp. has said it plans to launch electric models by 2012. In June, Mitsubishi Motors Corp., launched its own electric vehicle, the 4.59 million yen ($48,300) i-MiEV. Ford's first battery electric vehicle, the Transit Connect commercial van, is to be available next year, while General Motors Corp. is set to release its Chevrolet Volt next year, a rechargeable electric car with a small internal combustion engine that the company says will get up to 230 miles per gallon (98 kilometers per liter) in city driving. The Obama administration in June said Ford, Nissan and Tesla Motors Inc. would be the first three beneficiaries of a $25 billion fund to develop fuel-efficient vehicles. http://economictimes.indiatimes.com/International-Business/Honda-to-sell-electric-cars-in-US/articleshow/4925865.cms http://www.thehindubusinessline.com/blnus/10221303.htm http://www.business-standard.com/india/news/honda-to-introduce-electric-vehicle-in-us-in-2010/71447/on http://www.hindustantimes.com/News/auto/Honda-to-introduce-electric-vehicle-in-US-in-2010/Article1-445819.aspx http://timesofindia.indiatimes.com/news/business/international-business/Honda-to-introduce-electric-vehicle-in-US-in-2010/articleshow/4922074.cms   Go To Top     GERMANY RAMPS UP PRESSURE ON GM OVER OPEL Agencies See this story in: The Economic Times (Aug 24)   Berlin: With just five weeks until German elections, leading politicians on Sunday cranked up the pressure on General Motors and the US authorities to choose a candidate to take over GM's troubled Opel unit. After the company failed on Friday to select between two rival bids, Chancellor Angela Merkel called for a decision to be taken urgently and preferably as soon as next week. "The sooner the better. I wanted it to come on Friday evening. Now, I hope it will be next week," she told ZDF television in an interview to be broadcast later Sunday. "Every day counts, for the workers and for the company's economic situation," she said, according to a transcript of the interview released in advance by ZDF. Meanwhile, Foreign Minister Frank-Walter Steinmeier, who hopes to unseat Merkel in September 27 elections, said in a statement he had telephoned his American counterpart Hillary Clinton to press Berlin's case. Steinmeier "emphasised that after several months of intensive negotiations, the time had now come for a decision," according to a statement issued by the foreign ministry. "The workers at Opel deserve clarity and a credible prospect for the future," the statement added. He called for a decision "as quickly as possible that safeguards the future of all Opel factories and as many jobs in Germany as possible." The board of General Motors- which emerged from bankruptcy protection in July- met on Friday in Detroit to mull the fate of Opel, but said in a statement the meeting ended without any decision being taken. The board discussed two takeover offers on the table- one from Canadian autoparts maker Magna International and state Russian lender Sberbank, and another from Brussels-based investment group RHJ International. GM is believed to favour RHJ, but Germany has a clear preference for Magna, stressed again by Merkel in her ZDF interview on Sunday. Both bidders want to cut around 10,000 jobs at Opel, but Berlin and the German state governments where Opel has factories prefer Magna because fewer of its job cuts would fall in Germany. The German government's opinion is crucial because it is stumping up several billion euros in loans to sweeten the deal. In addition, around half of General Motors European employees work in Germany. According to press reports, Germany is prepared to offer a 4.5-billion-euro (6.4-billion-dollar) loan to Magna in an attempt to persuade GM to choose the Canadian-led offer. "We want results as soon as possible," a spokesman for Economy Minister Karl-Theodor zu Guttenberg said. http://economictimes.indiatimes.com/News/International-Business/Germany-ramps-up-pressure-on-GM-over-Opel/articleshow/4925215.cms   Go To Top      GM DEAL ON OPEL STILL POSSIBLE: GERMAN ECON MIN Reuters See this story in:  The Economic Times, Hindustan Times, Mint (Aug 23)   Berlin: Carmaker General Motors should be able to agree on a buyer for its German unit Opel despite failing to make a decision on Friday, Germany's Economy Minister Karl-Theodor zu Guttenberg was quoted as saying on Saturday. "I regret that the supervisory board was unable to come to a decision," Guttenberg told the online edition of the Hamburger Abendblatt daily. "There is still room for an agreement." Despite strong German pressure to back a bid by Magna International, General Motors Co declined on Friday to name the Canadian automotive firm as the winning bidder for Opel, leaving the fate of the carmaker up in the air. Two sources familiar with the situation said GM's board had opted to ask for more information from the German government on state financing available to complete a deal. "The federal government and the states have provided GM with all the information which they believe is needed for a decision," Guttenberg told the newspaper. GM directors asked Berlin what financing would be available to back a rival bid for Opel by Brussels-based financial investor RHJ International, the sources said. "This was a topic at the meeting," said one of them. The German government, which is barely a month away from a federal election, has offered financial backing for Magna's bid because it believes it would be the best option to save jobs at Opel, which employs around 25,000 in Germany. Berlin and the German states that host Opel plants have made clear they want Magna to get the carmaker and are set to provide 4.5 billion euros ($6.4 billion) in state aid to make it happen. The head of Opel's works council, Klaus Franz, said in a statement employees at the firm had run out of patience with GM. "I expressly urge GM to show responsibility and quickly reach an amicable solution with the German government which secures a future for Opel and its employees in Europe," he said. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/GM-deal-on-Opel-still-possible-German-Econ-Min/articleshow/4922595.cms http://www.hindustantimes.com/business-news/auto/GM-executives-board-split-over-Opel-fate-Report/Article1-445775.aspx http://www.livemint.com/2009/08/23161357/Merkel-says-GM-decision-on-Ope.html   Go To Top     GM DOING ITS BIT TO KEEP GERMAN OPEL UNIT Bloomberg See this story in:  Business Standard (Aug 23)   The General Motors board is considering all options for its German Opel unit, including rejecting two pending bids and keeping it as a wholly owned subsidiary, a person familiar with the discussions said.   The board yesterday reviewed bids from Brussels-based RHJ International and Aurora, Ontario-based Magna International without taking action. New GM directors, dominated by members who joined after a US-backed bankruptcy, are also considering keeping or dissolving Opel, said the person, who didnt want to be identified because the talks arent public.   Keeping Opel under GM would reverse six months of talks at the request of the German government asking the Detroit auto maker to give up a majority stake to outside investors in exchange for loans it needed to survive.   GM, which had run Opel since 1929, turned over control to a German-led trust when the company filed for US bankruptcy protection in early June.   GM is in a lot better shape than they were back in February, said Rebecca Lindland, a forecaster at IHS Global Insight in Lexington, Massachusetts. Maybe that gives them more confidence to reconsider the decision.   The company cut $40 billion in debt during the 40-day court-sponsored reorganisation and is slashing its eight US brands to four, including selling off the Saab, Hummer and Saturn brands and shutting Pontiac.   No decision The new 13-member board had already held one meeting, on August 4, without an Opel decision. The board opted not to take action again after a meeting yesterday, GM said in a statement.   Opel may still end up going to Magna, because its offer is supported by the German government.   German Chancellor Angela Merkel, faced with rising unemployment as national elections loom on September 27, prefers the bid by Magna, believing it will secure more jobs for Germans.   Her government is seeking to protect employees of Ruesselsheim-based Opel as Germany emerges from its worst recession since World War II. GM Europe employs about 25,000 people in Germany.   Steffen Moritz, a spokesman for the German Economy Ministry, had no immediate comment.   GM is weighing whether it still makes sense to give up control of Opel, a decision made before it successfully emerged from bankruptcy and conditions in Europe improved, two people familiar with the discussions said. A stake sale is still the more likely option, with insolvency the least favourable, said the people, who asked not to be identified because the deliberations arent public.   European stocks rose to a 10-month high this week in part because services in Germany and manufacturing in France unexpectedly expanded, signaling that the worst recession in six decades is easing.   Car sales rising European vehicle sales have benefited this year from incentive plans to get motorists to turn in old models, similar to the cash for clunkers program that may boost US sales in August to the highest this year.   Western European new-car registrations rose 5 per cent to 1.22 million vehicles in July, the German auto makers industry group, or VDA, said on August 14.   GM will ask Germany for more information about financing options, including funding for RHJ. The board hasnt scheduled another meeting or set a deadline for a decision. The Detroit-based company will recommend its preference to the Opel Trust board, the panel assembled to decide Opels fate.   That board includes two GM representatives and two representatives of Germany. A fifth, so-called neutral member does not have a vote. http://www.business-standard.com/india/news/gm-doing-its-bit-to-keep-german-opel-unit/367849/   Go To Top     TOYOTA FALLING BEHIND IN THE RACE TO GO ELECTRIC New York Times/Hiroko Tabuchi The Financial Express (Aug 24)   Despite Toyotas image as the worlds greenest automaker, the company that brought us the Priustotem of the environmentally conscioushas fallen behind in the race for the all-electric car.   Mitsubishi Motors started leasing its all-electric vehicle, the iMiEV, in June. Nissan Motor is set to release its electric car, the Leaf, next year. But Toyota does not plan to roll out an all-electric car until 2012. Instead, later this year, it plans to introduce a plug-in electric-gasoline hybrid, and only a few hundred initially.   Why is Toyota waiting on electric cars? asked Tadashi Tateuchi, a former race car designer turned electric-car evangelist.  Electric technology could help determine winners and losers in the auto industry of the future, but Toyota has been highly sceptical of electrical vehicles. The time is not here, Masatami Takimoto, Toyotas executive vice-president, said. Noting that electric cars face many challenges, he said, To commercialise pure EVs, we need a battery that far exceeds the current technology. If Toyota is right, its competitors will have spent billions on a technology that will be slow to take off.   But if electric cars win drivers over, Toyotas rivals could take the lead.  Toyota would like to profit all it can from the current technology before shifting to a new one, analysts say, especially because the company is facing a second down year after a loss last year of about $4 billion.   Toyota executives rattle off reasons to be sceptical of electric cars: They do not travel far enough on a charge; their batteries are expensive and not reliable; the electrical infrastructure is not in place to recharge them. Executives also say that Toyotas reputation for reliability could be tarnished if the company forged ahead with an unproven technology.  It remains unclear how soon there will be a mass market for expensive cars with limited range, Toyota says.   Even when electric cars are sold widely, the company says, they will be suitable only for short trips and form a decidedly niche market.  Toyota is instead building on its hybrid technology, bringing out a plug-in, gasoline-electric hybrid vehicle later this year that runs a short distance on batteries before the hybrid system kicks in. But electric car enthusiasts say Toyota is being unnecessarily cautious, ignoring technological breakthroughs that would allow it to develop electric cars more quickly. http://www.financialexpress.com/news/toyota-falling-behind-in-the-race-to-go-electric/505988/  Go To Top
ECONOMY & FINANCE                                                                                                   Go To Top FAKE CURRENCY HURTING ECONOMY Priti Bajaj The Pioneer (Aug 23)   New Delhi: Economic terrorism, in the form of fake currency flooding the market, is fast becoming an unavoidable part of our daily lives even as we try hard to weed out any counterfeit notes from our wallets. It is common sight that people peer hard at every 1,000-rupee or 500-rupee note to check for those tell-tale signs but the menace of fake notes continues unabated. It is present everywhere, right from the piggy bank at our homes to the bank ATMs. According to the Reserve Bank of India (RBI) estimates, the number of forged notes detected by the banking system in 2007-2008 was 1,95,811 against 4,422.5 crore notes in circulation. Though the apex bank has been proclaiming that the number of fake notes in India is a mere three to six pieces per million, which is one of the lowest in the world, the fact remains that the counterfeit currency has wider circulation and deeper ramifications on the economy of the nation. Security experts mince no words to point out that it is a major source of funding for terrorist outfits. In fact, investigations into the Mumbai attacks have revealed that a major chunk of the fund for the operation came in through fake currency rackets and hawala channels. It is very surprising that despite the best efforts of investigating agencies like CBI, which is creating a data bank of fake currency, the point from where the fake notes are infused into the economy remains undetected. There are indications that, at some points, the bank officials in remote towns are hands in glove with the counterfeiters, but there has not been much breakthrough in this area. In fact, with the rise in the number of physical notes in circulation, the number of cases of fake notes detection also has gone up. Does it indicate that along with the national mint, the anti-national mint is also working over time? As of now not many remedial measures are in sight but experts do recommend usage of cards and electronic payment to suppress the menace of fake notes but most people are quite wary of using these options for fear of leaving their personal details in the hands of cyber criminals. Now the best option for the apex bank, experts add, is that banks should go for better technology for currency operations, improve security system for storage of cash in banks and install note sorting machines at the bank counters for early detection of counterfeit notes. The onus to prevent circulation of fake currency is not just on the RBI. It is also on the banks, Centre, State Governments and security agencies. In fact, experts suggest that the basic plan for withdrawal of notes of old series and the launch of new series of polymer banknotes with strong security features can definitely help in controlling the menace if not wiping it out completely. http://www.dailypioneer.com/197483/Fake-currency-hurting-economy.html   Go To Top      GDP LIKELY TO CLOCK 7% IN 2009-10: CII PTI See this story in: The Financial Express (Aug 24)   New Delhi: With various segments of the industry showing signs of recovery, a CII-Ascon survey on Sunday said the countys economic growth could go up to 7% during 2009-10 against 6.7% in the previous fiscal.   Projecting a 6.5-7% growth rate for the current fiscal, the survey said, the corporate results for the first quarter of 2009-10 showed some incipient signs of stablisation. The corporate results available for a sample of 515 companies for the quarter ending June, revealed that net sales growth has declined, while net profit growth has improved. ...as a result of decline in cost of raw materials and power and fuel and moderation in growth of interest expenses the net profit grew strongly by 26% in the June quarter after having contracted by 7.2% in the previous quarter, it said.   The survey said key segments like fertiliser, cement and two-wheelers have entered in the excellent growth category from higher growth levels during April-June 2009-10 compared to the same period previous year. Sectors reporting excellent growth are industrial gases, automobile like scooters, it said. The number of sectors in both excellent and high growth category has recorded an increase reflecting that industry is building on marginal signs of recovery, it said.   Sectors like polyester staple fibre, all three wheelers and nuclear energy shifted from negative to moderate growth during the first quarter of 2009-10. The domestic industry recorded a year-on-year growth of 7.8% in June, marking a 16-month high compared to 5.44% in the same period last year. http://www.financialexpress.com/news/gdp-likely-to-clock-7-in-200910-cii/506060/  Go To Top