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| INDUSTRY Range Rovers, Discovery 3 will be available in India soon Tata Motors launches Freelander 2 in India Auto cos rev up in advance tax payment INTERVIEWS/FEATURES Mahindra Renault targets to sell 1200 units of Logan in North Sandeep holds key to Ford small car Ford upbeat on India as Alan Mulally stops over COMMERCIAL VEHICLES Mercedes-Benz to replicate India CV template globally CONSTRUCTION & AGRI MACHINERY Hero Honda says 2 wheels will score over cheap 4s New version of Karizma ZMR from Hero Honda Yamaha to enter scooter market COMPONENTS Pricol executives death sends shock waves in Coimbatore | ALLIED INDUSTRIES IDBI Bank, Chevrolet sign MoU for vehicle loan financing OIL, LUBRICANTS & ALTERNATIVE FUELS Crude oil back above $70 in Asian trade INTERNATIONAL NEWS With low prices, Hyundai builds market share GM restores 3,000 jobs, prepares to raise output GM Daewoo files action over car 'copying' by Russia firm Magna CEO says aims to appease VW on Opel deal Magna to cut 4,000 Opel jobs Sensex inches close to 17k level ADB upgrades India's growth forecast to 6%
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| M&M MAY DECIDE ON US PLANT BY MID-2010 Reuters See this story in: The Economic Times (Web Edition) Frankfurt: Mahindra & Mahindra Ltd wants to decide within months of its US market launch whether to set up an assembly plant there, the head of its automotive division told media. M&M may decide on U.S. plant by mid-2010 Yahoo India (Web Edition) http://in.biz.yahoo.com/090922/137/bau879.html RANGE ROVERS, DISCOVERY 3 WILL BE AVAILABLE IN INDIA SOON PTI See this story in: The Economic Times (Web & Print Edition) Mumbai: Tata Motors said it will start selling the 2010 models of the Range Rover, Range Rover Sport and the Discovery 3 with some Indian feature upgrades from November onwards. TaMo to launch 3 JLR models by Nov Daily News & Analysis (Web Edition) http://www.dnaindia.com/money/report_tamo-to-launch-3-jlr-models-by-nov_1292342 Tata Motors to launch Range Rovers in November The Indian Express (Web Edition) http://www.indianexpress.com/news/tata-motors-to-launch-range-rovers-in-nov/520205/ Range Rovers, Discovery 4 launch slated for November The Hindu (Web & Print Edition) http://www.hindu.com/2009/09/23/stories/2009092357631300.htm The Telegraph (Web Edition) http://www.telegraphindia.com/1090923/jsp/business/story_11530359.jsp TATA MOTORS LAUNCHES FREELANDER 2 IN INDIA The Financial Express (Web & Print Edition) Mumbai: After officially launching the Jaguar Land Rover (JLR) brand in the country two months back, the new owner of the British iconic brands, Tata Motors, on Tuesday launched the Freelander 2, a sports utility vehicle from the Land Rover stable in India. It will start selling the Land Rover 2010 range models from this November. The company will be getting the 2010 Ranger Rover and Range Rover Sports in November followed by Discovery 4 by the end of December. It has stopped the sale of Discovery 3 and managed to sell only two of them. Priced between Rs 33.8 lakh to Rs 45 lakh (ex-showroom Mumbai), the 2.2 litre diesel Freelander 2 comes in three variantsS, SE and HSE. Talking at the occasion, Rajiv Dube, president, passenger cars unit, Tata Motors, said, There are no competing models in the market in terms of breadth and capacity. Our Freelander 2 fulfills all these requirements of a customer. It widens our JLR offering in India. He added that the company expects to attain volumes of 2,000 units of Freelander 2 per annum in the years to come. Till now, the company has managed to sell 20 units of JLR. When asked about the rationale behind launching of old generation models in the country when the next generation is ready, Rohit Suri, head, premier car division, Tata Motors, said, At that time we didnt have the new Discovery 4 available and had to get Discovery 3. But from now on all the 2010 models will be made available to the customers. He added at present the company has just Freelander from the LR stable since new generation Range Rover and Range Rover Sports are on their way. There will be a price difference of Rs 2-2.5 lakh between the Discovery 3 and Discovery 4. Abdul Majeed, leader, automotive practice, PwC, said, The SUV market since the last few years is growing at 18-20%. Freelander 2 will give a stiff competition to brands like BMW, Mercedes-Benz and Audi. The company will be opening six more dealerships in 2010 across cities including Delhi, Bangalore, Chennai, Hyderabad and Ludhiana. Currently, it has only one dealership in Mumbai. http://www.financialexpress.com/news/tata-motors-launches-freelander-2-in-india/520250/ Tata Motors launches Freelander 2 The Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/2009/09/23/stories/2009092350320200.htm Tata Motors launches Freelander 2 in India Yahoo India (Web Edition) http://in.biz.yahoo.com/090922/50/bau88x.html AUTO COS REV UP IN ADVANCE TAX PAYMENT K. R. Srivats The Hindu Business Line (Web & Print Edition) See similar story in: The Indian Express (Delhi Print Edition) New Delhi: Indian Oil Corporation (IOC), NMDC and Standard Chartered Bank have entered the league of top 10 advance taxpayers for the September 15 instalment this fiscal. The three companies that have slipped out of this league, compared with the ranking for the June 15 instalment, are ICICI Bank, Deposit Insurance and Credit Guarantee Corporation, and GAIL, according to the latest data available with the Revenue Department. Strong show It has been a strong show by the corporate sector on the advance tax front for the September 15 instalment, with total payout increasing by 14.71 per cent to Rs 44,010 crore (Rs 38,367.20 crore). The banking sector has clearly bucked the slowdown with healthy growth in advance tax payouts, especially the top public sector banks. SBI continues to retain its position as the leading advance taxpayer, ahead of ONGC, which paid Rs 1,796 crore advance tax for September 2009 instalment. SBIs advance tax payout for September 15 instalment stood at Rs 1,832 crore. The auto pack has come back strongly in the September 15 instalment. The advance tax payout be the auto sector for the June 15 instalment was flat. For the September 15 instalment, Maruti Suzuki forked out Rs 265 crore (Rs 134 crore). Bajaj Auto paid Rs 170 crore (Rs 90 crore) as advance tax and Hero Honda Rs 137 crore (Rs 128 crore). While Tata Motors payout for the September 15 instalment stood at Rs 100 crore (Rs 19 crore), Mahindra & Mahindra paid advance tax of Rs 112 crore (Rs 16 crore). Among the new entrants, Indian Oil paid Rs 1,100 crore for the September 15 instalment. This oil marketing company did not pay any advance tax for the September 2008 instalment. Its total advance tax payout for 2008-09 was at Rs 150 crore. While Standard Chartered Bank paid for the September 15 instalment advance tax of Rs 725 crore (Rs 640 crore), NMDCs payout stood at Rs 600 crore (Rs 800 crore). The corporate sectors growth in advance tax payout of 14.71 per cent on a year-on-year basis was lower than the 61.7 per cent recorded increase in September 2008. However, the latest performance was not bad given that it came on a higher base of Rs 38,367 crore (September 2008), official sources said. The advance tax payout of the corporate sector in September 2007 stood at Rs 23,731 crore. The impact of the global financial meltdown was felt only in the second half of 2008-09, that is, post-September, after the collapse of Lehman Brothers in the US. The Central Board of Direct Taxes (CBDT) is confident of surpassing the budget estimates for 2009-10 going by the current advance tax collection trend. We are well on course to meet the budget estimate and may even comfortably meet the revised target of Rs 4 lakh crore as advised by the Finance Minister, sources said. On the personal income-tax front, advance tax collection up to September 15, 2009 stood at Rs 6,216.70 crore, 7.1 per cent lower than Rs 6,694.80 crore collected in same period last year. http://www.thehindubusinessline.com/2009/09/23/stories/2009092351900100.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CARS, SUVs, MUVs Go To Top PTI See this story in: mint (Web & Print Edition) Chennai: The countrys largest car maker Maruti Suzuki is mulling changing all engines in its range of entry level and A-plus segment cars to the latest KB Series engine which it unveiled last year, a top company executive said. Currently, the new series of engines is being used in the latest models of the Maruti stableEstilo, Ritz and the A Star. Asked whether all the entry level cars would be equipped with the KB Series engine, Maruti Suzuki India chairman R. C. Bhargava told PTI that it could happen over a period of time. It will not happen immediately. We cannot do that. It will happen over a period of time, he said. The KB Series engine, a part of the companys efforts to offer the latest technology to customers, is produced from the KB Series engine plant at Gurgaon. The all new, light-weight, engine series will be progressively introduced in other models over a period of next 3-5 years. The KB engine plant at Gurgaon has an installed annual capacity of 240,000 engines. To a query on investments proposed, he said, we have to wait till the end of October. The whole project would come to the Board by October and after that we have to decide how to go forward. So we have to wait till the end of October to know what the investment is and what will come. Maruti Suzuki India last year said it would shift production from a plant at the Gurgaon factory in Haryana, to the factory at Manesar, 25km to its south, also in the same state. The plant at the Gurgaon facility will be gradually changed to a base for engine assembly and machining, while the automobile assembly will be integrated at Manesar. On the impact of the global meltdown, Bhargava said there were signs of recovery but cautioned that no body has said recovery has happened so far. There are signs of recovery. It looks like recovery is happening but still nobody is saying that recovery has happened. That is our problem. Until recovery happens I cant tell you how confident we are. Responding to a query on vehicle sales, he said, it is always smooth (for us) so far and I hope it continues to be smooth. I cant predict that it will be on the same path. It may happen, it may not. Stating that Marutis strengths were its reach across the country, Bhargava said, I think Marutis strength is in that area in terms of reach to customers and our ability to provide service to customers at reasonable rates all over the country. That is what makes us generally to do better than any other (car) company. He said September and October were always good months for Maruti and hoped that it would be continued to be so. http://www.livemint.com/2009/09/22145315/Maruti-plans-KB-Series-engines.html?h=E Maruti plans KB series engines Deccan Herald (Web Edition) http://www.deccanherald.com/content/26825/maruti-plans-kb-series-engines.html Maruti to use new KB engine Deccan Chronicle (Web Edition) http://www.deccanchronicle.com/business/maruti-use-new-kb-engine-945 Maruti to use new KB engine Asian Age (Web & Print Edition) http://www.asianage.com/presentation/leftnavigation/news/business/maruti-to-use-new-kb-engine.aspx Maruti to fit KB engines in entry cars The Economic Times (Delhi Print Edition) Maruti ups new engine Hindustan Times (Delhi Print Edition) KB engines in more Marutis The Financial Express (Delhi Print Edition)
MAHINDRA RENAULT TARGETS TO SELL 1200 UNITS OF LOGAN IN NORTH PTI See this story in: Daily News & Analysis (Web Edition) Chandigarh: Mahindra Renault is hoping to sell 1200 units of Logan in Northern region in the current fiscal. "We are targeting to sell 1200 units of Logan in 2009-10 compared with 1150 units sold in last fiscal in North comprising Punjab, Haryana, Himachal Pradesh, Jammu and Although the company expected to achieve flat growth in terms of sales from North, yet it was eying to improve its market share in midsize segment from 8% 11% by end of current fiscal in this region. "We wish to have 11% market share in midsize segment in northern region in 2009-10," Ghoshal said. During the coming festival season, the company is offering special schemes which include car finance at a rate of 0.99% or 6.99%, LCD TV and two grand prizes of free Logan Play, to push up sales. "The customers can avail these offers when they visit the showrooms for test drive," said company's senior manager, Jasjit Singh Bawa. "We are targeting to sell 2000 units of Logan across the country during coming festival season," he said. The company, which is a joint venture between Mahindra & Mahindra and Renault, has also launched new variants of Logan Play which carry price tag of Rs5.49lakh for petrol and Rs6.79lakh for diesel version. "The new Logan Play adds a new dimension of fun and adventure to Logan's existing value proposition of space, fuel efficiency and economy," said Ghoshal. Mahindra Renault rolls out sporty Logan variants The Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/2009/09/23/stories/2009092350280200.htm
Samar Srivastava mint (Web & Print Edition) New Delhi: Alan Mulally wants to sell Sandeep a car. Ford Motor Co.s chief executive officer isnt happy being ranked eighth in the Indian car stakes, and wants to be up there with the Marutis and the Hyundais. The problem is no small car wears a blue oval on Indias roads. On Wednesday, Mulally will announce a small car for Sandeep, a name the firm chose to represent Fords typical customer. Aged about 26-27, newly married but still living with his parents, buying a car will be among his first major post-nuptial decisions. Mulally is to unveil the small-car in Delhi, with a production date set tentatively for March. Fords ambitions for the small car are not modest. From an India perspective, from where we are right now in terms of market share, we want to at least quadruple it, Michael Boneham, president and CEO of Ford India, said in an April interview. Thats from a share of 1.5% right now, so the bulk of the new sales will come from the car being showcased. Indias 1.5 million car market is dominated by small cars such as Maruti Suzuki India Ltds Alto, Hyundai Motor India Ltds Santro and Tata Motors Ltds Indica, squeezing manufacturers such as Ford and General Motors India Pvt. Ltd to the bottom of the table in terms of volume. While GM has made efforts to rectify this with the launch of the Spark in 2007, others such as Ford and Toyota Kirloskar Motors Ltd have missed out thus far. Small-car sales already make up 70% of car sales in India, and this is only likely to grow as more two-wheeler owners start moving to cars, said Puneet Gupta, an analyst at CSM Worldwide Inc., a forecasting firm. Gupta predicted that small cars are likely to make up an even larger share by 2015 as rising incomes make them more affordable. Indias auto industry has been among the first to recover from the global slump that shook every car maker globally in 2008. Car sales rose by nearly one-fourth last month to 120,669 units, albeit from a low base. Brisk sales have prompted the Society of Indian Automobile Manufacturers (Siam), which till recently had projected a 5% growth in sales this fiscal, to say it may revise its forecasts higher next month. Auto companies have realized that the small car is key to cracking the Indian mass market. General Motors Corp.s India subsidiary plans to introduce another small car at Januarys auto expo in New Delhi, while Toyota will launch its offering in December. Volkswagen India Pvt. Ltd will launch the Polo early next year. Convincing Sandeep to consider Fords products when he shops for his car is an increasingly important aim for the company as it seeks to get a leg up in the worlds second fastest growing auto market. A few months ago, Ford set about building its understanding of what was an entirely new customer segment for the company in India. The company addressed this through an immersion event with its target customers. Ive been working with Ford for 40 years and you get out of touch with different generations, different ways of thinking, how they approach a car... explained John Parker, Fords executive vice-president, Asia-Pacific and Africa, in the interview with Boneham. In March, senior managers from Ford and its advertising agency JWT spent an afternoon with at least a dozen Sandeeps in cities across India. The aim: to understand their aspirations, and the products and icons they relate to. This has gone towards helping the company craft its marketing and advertising strategy. In one instance, volunteers were shown magazines and asked what appealed to them. As a representative from JWT flipped through the pages, Bollywood actor Shah Rukh Khan was endorsed but his older counterpart Amitabh Bachchan given the thumbs down. Largely insulated from the global financial crisis, Ford noticed that the newly married the newly married Sandeep was in a hurry to get on with life. Purchasing a car was, in many cases, a major decision looming on the horizon. Living at home meant that his parents (and new wife) had a say in what car he planned to purchase. Ford plans to tap television as well as print and Internet advertising to get its message across. Mass (medium of) communication in this country is televisionfollowed closely by (the) press and the Internet, said Nigel E. Wark, executive director for sales and marketing at Ford India. He declined to provide further details on the advertising strategy. The men in the group were assertive and rarely hesitated to voice their opinion. Dressed in blue jeans and a T-shirt, Arjun Handa, a software professional with HCL Technologies Ltd, couldnt wait to get his own car. Recently married, he still shares an Alto with his parents. He plans to buy a car before year-end and said hell only consult one family member. Ill ask my dad for suggestions but it will be my decision, he said. Later that afternoon, the Sandeeps made their way to various stores in an up-market shopping area in New Delhi. With Rs3,000 to spend, theyd been asked to buy anything that caught their eye. Here, Ford got a peek into the price-conscious Indian customer who only buys when he needs to. After visiting several stores, Akshay Malhotra bought a shirt because he needed it. He chose to pocket the rest of his money. Someone else bought a cellphone. Again, because he needed it. Like other manufacturers that have successfully cracked the Indian market, Ford says it has taken care to incorporate requirements unique to it. Indias scorching summers prompted it to put in improved air conditioning. And with flooded roads forcing cars to wade through water, the car comes with a raised suspension. Ford is keeping the name of the car and its cost under wraps, but with localization of as much as 80%, the sticker price should give the competition a run for its money. http://www.livemint.com/2009/09/23002508/Sandeep-holds-key-to-Ford-smal.html FORD UPBEAT ON INDIA AS ALAN MULALLY STOPS OVER The Hindu Business Line (Web & Print Edition) Mumbai: A Google search would throw up an endless number of results for Mr Alan Mulally. This is hardly surprising given that he is the President and CEO of Ford Motor Company. The fact that Mr Mulally is in New Delhi for an event concerning his companys Indian operations is, therefore, not a trifling matter. He is scheduled to unveil Ford Indias small car on Wednesday. It is slated for an early 2010 launch, but the presence of one of the more powerful men in the global automobile industry at a pre-launch event clearly shows that Ford is serious about its India innings. China programme Now, if reports are to be believed, Mr Mulally will then fly to China to be present for a groundbreaking ceremony on Friday for his companys third plant. Clearly, Asia is the new growth driver for Ford especially with North America in a shambles and Europe crawling back to recovery. As an automobile market, China is quite some way ahead of India with monthly sales averaging a million units. Fords two plants have a capacity of over four lakh units which comfortably surpass its numbers in India. In fact, since the time it set up operations in Chennai, Ford has not quite set the market afire except for the time after the Ikon hit the roads and the josh theme caught the fancy of buyers. Following that heady period, the company has, in a sense, lost its way here only to see Japanese and Korean rivals zip past. It is precisely for this reason that the small car is so important to Ford in India borne by the fact that Mr Mulally will be personally present for the unveiling on Wednesday. As sources say, it is just not about a car but an acknowledgment of the countrys importance as a low-cost sourcing centre for its Asia-Pacific operations. This has become especially relevant in the new global order where multinationals are quickly realising that the days of large fuel-guzzlers could be relegated to the archives soon. Those with plants in the West are also facing the added burden of high costs. There is no question that the next best bet is Asia, especially India and China. The Ford small car will, therefore, not be intended solely for this country but also to countries in the Asia-Pacific region and, possibly, South Africa too in the near future. Apart from this, Indian suppliers will now be part of the American carmakers new global programmes in this part of the world as it kicks off work on cost-effective platforms. Cost control Mr Mulally obviously knows that if his company were to strengthen its bottomline, cost-control is an imperative. Similarly, topline growth will come from countries such as China and India. It is quite likely that Ford will also aggressively pursue opportunities in Brazil and Russia keeping in mind that the BRIC (Brazil, Russia, India and China) economies hold the key to growth in the future. From the Indian operations viewpoint, this could not have happened at a better time. Experts say that Ford missed the bus on more than one occasion when the market was warming up to small cars with the Government also supporting the cause through lower excise duties. The new model could change all that if everything else, right from price to smart retailing, falls in place, they add. http://www.thehindubusinessline.com/2009/09/23/stories/2009092350340200.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top Arindam Sinha The Financial Express (Web Edition) Jamshedpur: Facing dearth of drivers for its 'world truck' series of heavy commercial vehicles (HCVs), Tata Motors is planning to set up a large number of driver training schools across the country. The 25 'world trucks' that it has produced and tested so far are waiting to be marketed by the company by October. Around the same time, the auto major's training to a batch of drivers for the trucks will also be over. Tata Motors' 'world truck' range, which it calls 'Tata Prima', comprises multi-axle trucks, tractor-trailers (with two types of hp), tippers, mixers and special application vehicles with air-conditioned cabins for drivers. They are able to ply a gross combination weight (GCW) of 10-75 tonne and can do 50-100% more kilometers in a day than its present range of trucks. They are mounted with engines of 280-300 horse power (hp) range compared with the 140-150 hp HCVs that the company has been producing so far, and carry a considerably higher price tag than its present range of HCV chassis, which cost between Rs 10-25 lakh. Since the 'world trucks' are a different class of vehicles, those who would be driving them need to be trained. "We will like to set up driver training schools and support state governments in many parts of the country. We have started in Punjab, and are trying to do it in UP and Maharashtra," Tata Motors plant head SB Borwankar told fe here on Monday at the end of Singhbhum Industries Association (SIA) AGM. According to Borwankar, the Jamshedpur unit, which is building a vendor base here and would solely produce world trucks for the time being, will bring out around 500-600 world trucks during the current year, which is expected to go up substantially to 5,000-6,000 units in 2010-11. The company plans to slowly phase out its existing range of HCVs here as they are not Euro-III and Euro-IV emission-compatible, which come into force from 2010. "Production of other (HCVs) will continue along with this (world truck), but they will slowly phase out because in the coming years we're going to have Euro II, Euro IV & Euro V vehicles, which is not available in the existing models", added Borwankar. Tata Motors is also keen on adopting an ITI and a driver training institute in Jharkhand, provided, the basic infrastructure, including land, was provided by the state government. The company has already conveyed its intentions to the state government. "They (the government) are to approach us (regarding adoption of an ITI), where we will provide all the support including staff, training models, sections of aggregates, etc," said Borwankar. http://www.financialexpress.com/news/tata-motors-plans-driving-schools-for-world-trucks/520344/2 MERCEDES-BENZ TO REPLICATE INDIA CV TEMPLATE GLOBALLY Geeta Nair The Financial Express (Web & Print Edition) Pune: Mercedes-Benz India is taking its lessons learnt in India to other manufacturing locations across the world. The company has decided to make the Indian model for assembling Actros trucks its template across the globe for commercial vehicles. "We have developed a CKD process for the global market. The Actros trucks assembled here has set the standards," said Dr Wilfried G Aulbur, MD and CEO, Mercedes-Benz India. The company has been selling luxury cars assembled in India since 1995. The process for putting these cars together is well-oiled as the parent has production facilities in five continents and CKD assembly plants in eight. In Pune, the company assembles the S-Class, E-Class and C-Class cars. But when it entered the commercial vehicles space trucks and buses it was breaking fresh ground. Initially, the Actros trucks came into India as completely build units. It moved towards being assembled in the country over time and currently has around 30% localisation, including tyres, batteries, wheel rims, hydraulic and tippers. In 2008, Mercedes-Benz sold 240 trucks and 15 buses in India and there would be close to 600 Actros trucks on Indian roads. The Actros range of heavy-end trucks is assembled at the 100-acre, Rs 250-crore Chakan plant. The independent commercial vehicle assembly line has an annual capacity of 1,200 trucks and buses per shift. Aulbur said this has become a benchmark for assembly plants for commercial vehicles. The Actros manufacturing line was set up taking cues from the processes used in passenger cars. For material handling it used the Kanban concept, where small parts are issued as and when required by production. For production, it used picture catalogues that made it easier to understand the assembly process. To ensure quality, the company used four quality loops that are use in passenger car quality process -- self certification by the production operator, section audit of the product, product audit at the end of the line and finally, extensive product audit by quality. The Actros manufacturing is certified for TS 16949, ISO 14001, OHSAS 18001 and MPS along with passenger cars. Another innovation was the red table concept where the quality of defective parts are checked jointly on a red table with adequate representation from the production, logistics and quality team members. Innovations like these ensure that the trucks that rolled out of the Indian plant were no different from what was manufactured elsewhere. The company says there have been no structural failures on 580 chassis. These trucks have clocked 16,000 hours and 2,75,000-km run. http://www.financialexpress.com/news/mercedesbenz-to-replicate-india-cv-template-globally/520238/2 Mercedes-Benz to replicate India CV template globally Yahoo India (Web Edition) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top Deccan Chronicle See this story in: Asian Age Mumbai: The Indian two-wheeler manufacturing industry has achieved a growth of 25.1 per cent during August 2009 to 7.7 lakh units compared with 6.2 lakh units in August 2008 and is hoping that this festive season would be better than the last years festive season. Ms Revati Kasture, head, industry research of Care Ratings said: Though exports are still on a decline the domestic sales are picking up. During April to August 2009 the domestic sales increased by 17.7 per cent to 36 lakhs compared with 31 lakhs during the same period last fiscal, while exports fell by 3.4 per cent from 4.3 lakh units during April to August 2008 to 4.1 lakh units during April to August 2009. Going forward we expect that the domestic two-wheeler sales would further pick up in the festive season, she added. Most of the two-wheeler manufacturers are trying to boost the sales by launching new models. Ms Kasture said: Bajaj has launched two models in the last couple of months and is planning to launch a few more new models this fiscal. Similarly Hero Honda is learnt to be launching about eight to nine new models this fiscal to boost the sales. Even Honda Motorcycle and Scooter India (HMSI) is planning to launch more than four models in the near future including a 250 CC motorcycle in 2011, she added. Hero Honda that sold six lakh two-wheelers during October 2008, is hoping to sell more than that in October 2009. On the other hand riding on the surge in demand for new models Bajaj has already sold a record one lakh units of the 100 CC segment bike Discover DTS-Si in the first 50 days of its launch. Mr S. Sridhar, CEO of Bajaj Auto said the company has already ramped up production to 80,000 with the help of its Pantnagar capacity to meet the overwhelming demand. http://www.deccanchronicle.com/business/bike-manufacturers-bet-big-festival-season-946 HERO HONDA SAYS 2 WHEELS WILL SCORE OVER CHEAP 4S Sourav Sen Daily News & Analysis "Your company is well aware about the anticipation over low-cost cars. These will be good for India. Nevertheless, there is little doubt that two-wheelers would continue to remain the vehicle of choice in India," he said at the meeting. There has been speculation that the advent of low-cost cars would wean away two-wheeler customers on the price point. Earlier this year, Tata Motors launched its Rs 1 lakh car Nano. Compared with that price point, most premium segment motorcycles are priced at around Rs 65,000. "Low running costs, easy navigability and low maintenance costs ensure that two-wheelers outsell cars. These factors would continue to drive sales in the coming decades as well," said Munjal. Sensing an opportunity after the launch of Nano, many international automobile companies have evinced interest in developing such low-cost cars.France's Renault is already developing a low-cost car with Bajaj Auto Ltd. Separately, Munjal said the domestic two-wheeler industry would become much more competitive over the next 12 months."There would be more competition on price, technology and models," he said. http://www.dnaindia.com/money/report_hero-honda-says-2-wheels-will-score-over-cheap-4s_1292343
The Hindu New Delhi: Hero Honda Motors has launched the new version of its premium bike Karizma, targeting youngsters in the age group of 18-24 years. Priced at Rs. 91,000, the Karizma ZMR comes with 225 cc fuel injection engine and is fitted with digital ignition system, while the fully transistorized digital ignition system ensures better power and crisp throttle response. The new ZMR is the fifth model from Hero Honda in the premium segment, besides Hunk, Achiever, CBZ Xtreme and Karizma. http://www.hindu.com/2009/09/23/stories/2009092357621300.htm YAMAHA TO ENTER SCOOTER MARKET Business Standard See this story in: Rediff India Kolkata: India has a 1.2 million units a year scooter market, so it has a huge potential. We have plans to enter the scooter segment in another three years or so, Yukimine Tsuji, CEO of India Yamaha Motor, said. The company also intends to increase its exports targets to touch 140,000 units in 2010, and 70,000 units in 2009, up from 30,000 units in 2008. The company is also targeting around 500 dealers in India by 2009, up from 400 dealers right now. More dealers for the company is expected to increase its presence and penetration especially in rural areas. Tsuji said, We now have a motorcycle for every segment including the recently launched 153cc Limited Editions Fazer and FZ series models, 150cc R15, 125cc Gladiator, 106cc G5, Alba and Crux models. Our 150cc+ bikes - R15, FZ series and Fazer - have been successful in major metros including Kolkata. Now we want to replicate the same success story in smaller towns as well. In a bid to re-establish the global Yamaha image in India, Yamaha has recently announced a Yes! Yamaha campaign, through which the company aims to provide value to customer. Yamaha is also running a 'Win Win Win' campaign for its entire product range to increase showroom traffic and give cash rewards up to Rs 3,001 to consumers purchasing Yamaha bikes. Lucky customers can also win a trip to Thailand. http://www.business-standard.com/india/news/yamaha-to-enter-scooter-market/370983/ http://business.rediff.com/report/2009/sep/23/yamaha-to-enter-scooter-market-in-india.htm The Hindu Business Line New Delhi: Ultra Motor Company, a wholly owned subsidiary of UMC UK, announced the launch of two electric scooters Ultra Fun and Ultra Shakti. According to the company, both the scooters have been designed specifically for urban commuters and are powered by a low-speed 250 W motor. Moreover, the scooters do not need a drivers licence to run. Both the scooters are clean, gasoline-free transportation alternatives for the thousands of short trips Indians take every day. The launch of these two models is in continuation of our vision of creating a new transportation movement, transforming how we go places, said Mr K.K. Bhan, CEO, UMC India. The Ultra Fun has been designed for hilly terrains and would be available in red and black for Rs 28,300 in Delhi. The Ultra Shakti will be available in black, red and silver. The scooter, which is being targeted at school-going kids and women, will be available for Rs 31,900 in Delhi. http://www.thehindubusinessline.com/2009/09/23/stories/2009092350270200.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top PTI See this story in: The Hindu Business Line Mumbai: SKF India on Tuesday said its board has appointed Shishir Joshipura as Managing and Additional Director of the company. The company has appointed Joshipura with effect from December 1, 2009, though he would take over from Rakesh Makhija, the cur rent MD, from January 1, 2010, SKF India said in a filing to the Bombay Stock Exchange. Meanwhile, the company has appointed Makhija as President, Asia, SKF Group and would be based out of Shanghai. http://www.thehindubusinessline.com/blnus/02221406.htm New Managing Director for SKF India The Hindu PTI See this story in: The Hindu Business Line, The Economic Times New Delhi: Auto component maker Rico Auto Industries on Tuesday said production in one of its plants in the National Capital Region has been affected by about 30 per cent due to labour unrest. Production has come down and currently we are producing about 70 per cent... but we are hopeful that within the next one or two days production will be 100 per cent, Mr Arvind Kapur, Managing Director, Rico Auto Industries said. The workers have been adopting a go slow approach towards their work for the last 45-60 days, he added. It is learnt that the workers at a facility in Gurgaon were putting up a host of demands, including wage hike. Earlier in the day, the company informed the Bombay Stock Exchange that the management is hopeful of an amicable settlement very soon. The company manufactures components such as fuel system parts, turbine housings, crank cases, cylinder head covers and cylinder blocks. Rico Auto Industries had posted a total income of Rs 765.88 crore during 2008-09. The shares of the company were last trading 4.48 per cent up at Rs 28 on the BSE. http://www.thehindubusinessline.com/blnus/02221607.htm
The Hindu Business Line See this story in: The Economic Times
Mr George suffered multiple injuries in an attack allegedly by some workers upset over the dismissal of some compatriots at the companys another production facility. Terming the death very, very unfortunate, Mrs Vanitha Mohan, Executive Director, Pricol, said she suspected that Mr George was specifically targeted because of the measures he had initiated, since he joined service a few months back, to wean the workers away from a union affiliated to the CPI (ML) that has been agitating on various demands. She said 42 workers of a Pricol facility near Kuniamuthur were dismissed from service on Monday due to what she called their persistent go-slow tactics. Mrs Vanitha Mohan said that police protection has been sought for some workers who, she said, were trying to reason with those agitating. Mr Mahendra Ramdas, President, Indian Chamber of Commerce and Industry (ICCI), Coimbatore, told Business Line that leaders of various industrial organisations are planning a days closure to protest against the violence and express solidarity with Pricol. Mr Jayakumar Ramdass, President, Southern India Engineering Manufacturers Association (Siema), Coimbatore, said unchecked, such incidents could lead to the return of labour militancy to Coimbatore. He said Coimbatore has of late been attracting investments by national and international companies, such as Suzlon, L&T, Flowserve, and Mitsubishi Corporation, and labour militancy could affect inflows. It could also lead to local industries making fresh investments elsewhere. Such violence may also scare away executives from outside. Various industrial associations of Coimbatore have in a memorandum to the Tamil Nadu Chief Minister, Mr M. Karunanidhi, and the Deputy Chief Minister, Mr M. K. Stalin, sought steps to ensure industrial peace in Coimbatore. http://www.thehindubusinessline.com/2009/09/23/stories/2009092350330200.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top Shahana Joshi
Its products are already available in Delhi, Bangalore, Chennai and Mumbai and go by the brand name Tonino Lamborghini. The products under this brand include laptop bags, camera bags, mobile pouches and iPod covers, and their prices range between Rs 1,500 and Rs 7,000. This brands focuses people between 18 and 40 years of age, and the company plans to market itself with the same brand ethos. Our aim is to create a product user base by maxing out our distribution and availability points, says Ajay Mehta, managing director, MCC, the licensing company for Tonino Lamborghini in India. The initial investment for Phase-1 of Lamborghinis operations, to consist solely of displays in fashion magazines such as Vogue and GQ in India, is about Rs 10 lakh, which will spread over the next three to six months.The investments in phase-2 will remain roughly the same. The company is aiming at a 5 per cent market share of the Rs 500 crore computer bag segment in the first year, with a sale of approximately 250,000 bags. Tonino Lamborghini products are available in selected retail outlets, namely Hotspot, Reliance, eZone and Croma, where the company pays 20-25 per cent margin to the outlet. The company has no plans to open any standalone stores, as the product range is not large enough. Lamborghini will focus primarily on its range of laptop bags, as it feels laptop sales have shot up in India in the past two years. Not just the increase in sales but also the drop in prices of laptops make notebook bags our flagship product. Most of the laptops are available in the range of Rs 20,00030,000 do not come with laptop bags, notes Mehta. Lamborghini was started in 1946 and initially made sports cars, tractors, burners, solar panels, water treatment, air conditioners, air generators, hydraulic components, wines and golf carts. In 1981,the brand Tonino Lamborghini was established, adding fashion and accessories to the company profile. http://www.business-standard.com/india/news/lamborghini-to-expand-multimedia-accessories-business/370987/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top George Smith Alexander The Economic Times Mumbai: Axis Bank has become the new price warrior in the car loan segment. The third-largest private sector bank has slashed interest rates by around 150-200 basis points in the past one month in select southern markets. The rate card of Axis Bank for internal customer is between 9.5-10% while for external customers its between 10.5-11%. However, the final rate for the customer would be lower depending on how much commission the dealer passes on to the customer and also on the back of various schemes offered by manufacturer. Following rate cuts by Axis Bank, Kotak Mahindra has also slashed its interest rates. "We have reduced our rates by 40-50 basis points and the net rate to customers would now be around 10.25-10.5%. As of now there is no proposal to reduce our interest rates unless there is some policy decision," says Sumit Bali, CEO, Kotak Mahindra Prime. HDFC Bank, the second-largest player in the auto loan market after SBI, has also cut rates by 50 bps to between 10.5-11%. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" IDBI BANK, CHEVROLET SIGN MOU FOR VEHICLE LOAN FINANCING PTI See this story in: The Economic Times Mumbai: IDBI Bank and Chevrolet Sales India Pvt Ltd (CSIPL) have entered into an agreement for providing auto finance to prospective customers of the latter. The tie-up will benefit both -- IDBI Bank in further strengthening its position in the retail loan space and CSIPL in leveraging the retail financing strength and reach of the bank, the release said. IDBI Bank had launched its auto loans in July this year. http://economictimes.indiatimes.com/news/news-by-industry/banking/-finance-/finance/IDBI-Bank-Chevrolet-sign-MoU-for-vehicle-loan-financing/articleshow/5043712.cms | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top PTI See this story in: The Hindu Business Line New Delhi: After Chandigarh and Allahabad, Indian Oil Corp and Adani Energy combine has bagged rights to retail CNG to automobiles and piped gas to industries in Ghaziabad by quoting nil or zero pipeline tariff. The Petroleum and Natural Gas Regulatory Board (PNGRB) opened the price bids for Ghaziabad - last of the seven cities for which it had called bids for giving out city gas distribution licence - and ranked IOC-Adani combine as the most preferred, so urces in the Board said. Gujarat's GSPC Gas came second among the six bidders. The PNGRB, however, cannot issue a licence because of a Delhi High Court order restraining it from doing so till the time the court decides on a petition challenging its authority to issue licences. Sources said PNGRB had asked the companies to quote only the tariff that they will charge for transporting gas within the perimeters of a city and left the final selling price of the fuel for the companies to decide. This provision of 'zero' tariff, sources said, is made up by companies through CNG charges levied from users - household or industries - as they deem fit. IOC-Adani combine quoted 'zero' pipeline tariff for all of the 25 years of the licence, making a mockery of the entire exercise. They had previously quoted zero pipeline tariff for 25 years in Chandigarh and the same for seven years in Allahabad. http://www.thehindubusinessline.com/blnus/02221808.htm CRUDE OIL BACK ABOVE $70 IN ASIAN TRADE PTI See this story in: The Hindu Business Line Singapore: Crude oil prices jumped back above $70 in Asian trade on Tuesday as the US currency weakened, but trading was cautious ahead of the G20 summit on the global economy. Investors are also closely watching the results of a meeting of the Federal Reserve, the US central bank, on interest rates, they said. New York's main contract, light sweet crude for October delivery, was up 41 cents to $70.12 a barrel in morning trade after declining $2.33 yesterday. Brent North Sea crude for November delivery climbed 44 cents to $69.13. http://www.thehindubusinessline.com/blnus/08221304.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US AUTOMAKER RECEIVES $528.7 MILLION GOVERNMENT LOAN Agencies See this story in: The Economic Times, The Times of India Washington: Fisker Automotive, a California manufacturer of luxury electric vehicles, will receive more than $500 million in federal loans to develop a plug-in hybrid sports car with a sticker price of nearly $90,000 and a new plug-in hybrid vehicle to be built in the United States. http://economictimes.indiatimes.com/news/international http://timesofindia.indiatimes.com/news/business WITH LOW PRICES, HYUNDAI BUILDS MARKET SHARE NYT
GM RESTORES 3,000 JOBS, PREPARES TO RAISE OUTPUT Reuters See this story in: The Economic Times, Yahoo India Detroit: General Motors Co said on Tuesday it planned to restore about 3,000 jobs at US assembly plants and related facilities and is getting set to raise North American production by up to 45 percent next year. http://in.biz.yahoo.com/090922/137/bau88d.html GM DAEWOO FILES ACTION OVER CAR 'COPYING' BY RUSSIA FIRM PTI See this story in: Deccan Chronicle GM Daewoo, the South Korean subsidiary of US giant General Motors, said on Tuesday it has launched a court action to prevent a Russian automaker's local unit from allegedly copying one of its cars. "On Monday we filed a petition with the Seoul central district court to prevent TagAZ Korea from breaching our intellectual property rights and trade secrets," said a GM Daewoo spokesman. The petition seeks an injunction to stop TagAZ from developing, manufacturing, selling and exporting copied products and from using and disclosing GM Daewoo's trade secrets, he said. Prosecutors said this month that two former GM Daewoo engineers now working for TagAZ Korea have been arrested for allegedly leaking core technology to the Russian firm. Investigators said one man was suspected of stealing 6,000 computer files containing information on engine and parts designs and other key technology linked to GM Daewoo's Lacetti compact sedan. They said the data is believed to have been used to develop a new model unveiled in Russia this summer. Police said a third man, an executive of TagAZ Korea, committed suicide after leaving notes asserting his innocence. "When prosecution authorities complete investigations into the case, we will consider filing a damages lawsuit against TagAZ Korea," said the GM Daewoo spokesman, Kim Sang-Won. The cost of developing a model such as the Lacetti averages around 300 billion won (245 million dollars), GM Daewoo said. A TagAZ Korea official said his company had no comment pending completion of the investigation by prosecutors. http://www.deccanchronicle.com/business/gm-daewoo-files-action-over-car-copying-russia-firm-755 MAGNA CEO SAYS AIMS TO APPEASE VW ON OPEL DEAL Nathan Layne/ Reuters See this story in: Yahoo India, The Economic Times
Magna co-Chief Executive Officer Donald Walker also told a media briefing in Tokyo he was unaware of any talks between it and China's Geely Group over a partnership on Opel, which were reported by Reuters and other media last week. Earlier this month, General Motors agreed to sell control of Opel to a group led by Magna. Under the deal Magna and Russian partner Sberbank will each take a 27.5 percent stake while GM will retain 35 percent. Magna has started to talk with its customers to assure them it would keep its supplier and automotive operations separate after the transaction, preventing the technology of its carmarking customers from being used in rival cars. "Most of the customers I have talked to personally want to know how we have a separation to protect technology but they have told me they are comfortable with it," Walker said at the briefing held to update the Japanese press on the Opel deal. "Specifically, Volkswagen have said they are concerned so we need to finalise the internal procedures and have more discussions with them." Walker said he had yet to meet Volkswagen. "I think the next step will be to meet with them." Detlef Wittig, head of Volkswagen's sales and marketing, recently warned that it would pull business from Magna in which its development know-how is involved. VW Chief Executive Martin Winterkorn has also raised concerns about the deal. Analysts have said Magna's push into the auto business risks its $23 billion business with established customers. Magna's major customers include General Motors, Ford Motor Co, and Chrysler as well as Daimler AG and BMW. Walker said Magna's main objective was to get a good return on its investment in Opel and not to compete with its clients. "It's very important that we clarify that Magna is not taking over Opel. Magna will remain as a parts company," Walker said. Geely Questions Walker and a spokeswoman for Magna declined to confirm or deny talks with Geely over a potential partnership on Opel. Talks between the parent company of Geely Automobile Holdings and Magna included the possibility of Geely taking a stake in Opel, but Magna is refraining from any such partnership for now, a source told Reuters last week. "I'm not aware of anything with Geely," Walker said. Walker said Magna was interested in alliances in hybrid and electric vehicles, noting that Magna has been putting resources into related technologies and is currently working with Ford on the battery-electric Focus. "I foresee a lot of cooperation amongst the car makers and certainly with Magna on hybrids and electric vehicles." http://in.biz.yahoo.com/090922/137/bau86q.html MAGNA TO CUT 4,000 OPEL JOBS See this story in: The Tribune Berlin: Canadian auto parts maker Magna will cut more than 4,000 jobs in Germany when it takes over the Opel business of struggling US auto giant General Motors, a report said on Tuesday. The Frankfurter Allgemeine Zeitung (FAZ), citing Magna's strategic plan for GM's European operations, said nearly 11,000 jobs will be lost out of a total 45,730, affecting all sites and including the politically sensitive closure of the Antwerp plant in Belgium. http://www.tribuneindia.com/2009/20090923/biz.htm Magna to cut 4,000 Opel jobs The Statesman http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=269312 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top See this story in: The Indian Express Mumbai: The Indian rupee on Tuesday fell marginally by 3 paise to 48.16 against the US dollar in early trade on expectations of fresh capital outflows as the stock market may open lower in line with mixed trends in other Asian markets. Dollar demand from importers also put pressure on the the Indian rupee. At the Interbank Foreign Exchange (Forex) market, the domestic unit traded 3 paise down at 48.16 a dollar. The rupee ended 2 paise higher at 48.13/14 against the US currency in the previous session on Friday. The Forex market remained closed on Monday on account of "id-ul-fitr". Dealers said the rupee turned weak in anticipation of fresh capital outflows as the stock markets may commence in a negative zone but firming of some Asian currencies against the dollar capped rupee's losses. http://www.indianexpress.com/news/rupee-slips-to-48.16-against-dollar/520094/ SENSEX INCHES CLOSE TO 17K LEVEL PTI See this story in: The Hindu Business Line Mumbai: The benchmark Sensex on Tuesday rose by over 145 points and the wider index Nifty regained the crucial 5,000 level after 16 months on cues such as expectation of better corporate earnings and reports of growth in advance tax to extend the gaining trend for the fifth day in a row. After rising pretty close to the 17,000-level, the Bombay Stock Exchange benchmark index Sensex settled at 16,886.43 points, higher by 145.13 from its last close. During intra-day it jumped to the day's high level of 16,943.49. The bellwether index had notched up 672 points in the past five trading sessions. Wider National Stock Exchange index Nifty shot up by 44.15 points to 5,020.20, retaining over 5,000- level for the first time since May 22, last year. Market men said trading sentiment got a boost after the Finance Minister, Mr Pranab Mukherjee said on last Friday that said policy makers need to keep borrowing costs at a record help economy recover Advance tax paid by companies in the July-September quarter rose 14.7 per cent from a year earlier, after dropping 3.7 per cent in the preceding three months. The market also rose as the Asian Development Bank raised its economic growth forecast for Asia on strengthening expansions in India, China and Indonesia. Sensex stock HDFC shot up by Rs 134.35 to Rs 2667.40. http://www.thehindubusinessline.com/blnus/05221901.htm ADB UPGRADES INDIA'S GROWTH FORECAST TO 6% PTI See this story in: The Hindu Business Line New Delhi: Multilateral lending agency Asian Development Bank (ADB) has revised upwards India's growth projection to 6 per cent for the current fiscal on account of rising business confidence but warned that inflationary pressure would continue. Emerging signs of a recovery in private business confidence and a continued large fiscal stimulus announced in the July 2009 budget helped bolster India's projected economic expansion to 6 per cent this year, upgraded from 5 per cent in March,'' ADB sai d in its update on Asian Development Outlook 2009. India, it added, would be able to clock 7 per cent growth rate during 2010-11. Country's growth rate slipped from 9 per cent to 6.7 per cent in 2008-09 on account of the impact of the global financial crisis. Projecting an inflation of 4-5 per cent by March 2010, the ADB said, inflationary pressures are likely to persist, driven by high food prices and expansionary monetary and fiscal policies.'' The inflation has turned positive for the week ended Septembe r 5, after remaining in the negative zone for about three months. Rising food inflation, ADB said, would create a dilemma for the monetary authority which is currently engaged in combating the impact of the financial meltdown by following easy money pol icy. On the positive, ADB added, delayed rains appear to be filling water reservoirs to an adequate level to ensure a reasonable winter crop harvest. The multilateral lending agency further said that if the large fiscal deficits are not reined in over the ne xt few years, the public expenditure-led growth strategy, although appropriate given the global economic weakness, could prove counter-productive. Apart from global uncertainty, the key downside risk to the outlook emerges from financial crowding out of private investment,'' ADB said. The RBI has pegged the growth rate at 6 per cent for the current fiscal, while the Planning Commission sees stron ger economic expansion in the second half which could push up the growth rate for the current fiscal to beyond 6.3 per cent projected earlier by the panel. Growth in the first quarter of 2009 reached 6.1 per cent, a modest rise on the previous two quart ers, with the upturn reflecting a recovery in industrial growth to 5 per cent from less than 2 per cent in the previous six months. The government's strong fiscal stimulus, complementing the Reserve Bank of India's aggressive monetary policy easing, has successfully brought last year's economic slowdown to an end,'' ADB Chief Economist Jong-Wha Lee said. The agency has projected eco nomic expansion in developing Asia to come in at 3.9 per cent in 2009, up from the 3.4 per cent expected in March. http://www.thehindubusinessline.com/blnus/14221603.htm Last Financial closing
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Monday, September 28, 2009
Indian Auto Industry Update September 23, 2009
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