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| HEADLINES Thursday November 05, 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY Auto firms increase online spends INTERVIEWS/FEATURES Volkswagen's big three to be launched soon! COMPONENTS JBM Group in education tie-up with Dassault Systemes ALLIED INDUSTRIES Auto, core sectors help steel cos firm up Oct sales by 30% FINANCE & INSURANCE 'Our focus will be semi-urban and rural markets': MD, Mahindra Finance OIL, LUBRICANTS & ALTERNATIVE FUELS Oil falls towards $79/barrel | CARS, SUVs, MUVs Car makers look up to tap reverse brain drain COMMERCIAL VEHICLES Truck sales accelerate 59% in October Buzz on renewal of truck JV lifts Force Motors CONSTRUCTION & AGRI MACHINERY 'We've just scratched the surface of export potential': Sohini Das, Managing Director (India Operations), Volvo CE 2/3 WHEELERS Royal Enfield to double capacity at Chennai plant INTERNATIONAL NEWS Auto suppliers poised for more consolidation ECONOMY & FINANCE Rupee gains 35 paise Inflation to moderate by year-end: Montek | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 INDUSTRYSeema Sindhu Business Standard (Web & Print Edition) New Delhi: Auto companies in the country like Maruti, General Motors, Volkswagen, Honda, Mahindra and Bajaj have increased their online spends significantly. The reason is not hard to fathom. Going by a recent report by J D Power and Associates, over a third of prospective vehicle customers in India are opting for the internet to search for information on vehicles. The figure has risen from 21 per cent in 2007 to 34 per cent in 2009. Advertisements like plain banner ads, flash ads, and click to play videos are the most popular ads placed by auto companies, according to Saurabh Bhatia, Chief Business Officer, Vdopia (Indias largest Video Ad Network). Recession has made companies nimble. Auto companies, specifically, realised that when people are not buying as before, it is sane to put money where most potential buyers hop. We have seen a 200-300 per cent increase in our revenue from auto companies as compared to the last year, he says. Vdopias clientele includes Maruti, GM, Mahindra and Bajaj. Vehicles are a high-value item. With the urban, upper-middle and middle class population typically into surfing the internet, the shift to cyberspace is a lucrative option for these auto companies. Maruti is a case in point. It gets on an average 3,500-4,000 test drive requests online every month and around 2,000 enquires for True Value its pre-owned car business. Shashank Srivastava, Chief General Manager (Marketing), Maruti Suzuki, says: With our product range and profile moving towards younger audience, at Maruti Suzuki, we are focusing on this medium in a big way. Declining to give any figures, Srivastava, adds: We have upped our investments on the internet. Compared to last year, we are spending almost 3 times more on the online medium. Marutis focus on the web can be gauged with its innovative initiatives like virtual test drives on the web for Ritz and Swift Life - an online community portal for Swift owners. Its campaign for A-Star was extremely successful. Its initiative for the Ritz got it over 21 million impressions from webusers. Over 5.90 lakh unique visitors during very first month of Ritzs launch has helped in a strong brand positioning for the Ritz. Maruti was the first company to offer online booking as well as sales through Internet for NRIs, started three years back. Another point in case is Tata Motors which used the internet extensively for Nano marketing. It had a section on the Nano website to design ones own car. Nano communities established on Orkut and Facebook, prior to the cars launch, helped it gather the opinion and preferences of the customers. It also launched a game and conducted regular contests on the website to keep customer interest alive. Tata Motors also introduced online booking feature for Nano in April 2009, allowing online payment. On the launch, the website received 5 million hits in a period of 24 hours. During the booking phase of Nano, the website received at average 8 lakh hits per day. One can also buy Nano merchandise online. A Tata Motors spokesperson says: Use of online marketing tools have helped us capture the preferences and feedback of the customers on a real-time basis as against traditional media.As if on a cue, auto companies have also revamped their websites. The websites which earlier used to look like only information brochures now sport a 3D view of the automobiles and have onling booking features. Bloomberg See this story in: Business Standard (Web & Print Edition) Michigan: Tata Motors Ltd will build as many as 25,000 Jaguar XJ luxury cars annually, starting next quarter, in a bid to take customers from Bayerische Motoren Werke AGs 7 Series and Daimler AGs Mercedes S Class. The aluminum-body sedan would be built at the companys Castle Bromwich, England, factory, Ian Callum, Jaguars design director, said in an interview in Detroit. The least expensive version will start at $72,000 in the US, he said, and can cost as much at $115,000 with all available options. Callum said the US would account for about half the cars sales. Through October, Jaguar sold 1,082 XJs in the US, down from 2,038 during the same period in 2008, according to Autodata Corp, based in Woodcliff Lake, New Jersey. The automaker discontinued production of the previous model in March. Unlike the previous XJ, which reflected a more traditional English look, the new vehicle is thoroughly modern and stylish, Callum said. Jaguar is about creating cars for their time. Ford Motor Co sold the Jaguar and Land Rover brands to Mumbai, India-based Tata in June 2008 for $2.4 billion. That was less than half the price Dearborn, Michigan-based Ford paid for the UK auto makers. The new Jaguar sedan has a uniqueness and differentiation going for it, said Eddie Alterman, editor-in-chief of Car & Driver. The Mercedes S Class and BMW 7 series are sold in pretty high volumes and are concentrated in the same ZIP codes. Tata plans to sell 25,000 Jaguars a year Mint (Delhi Print Edition) Agencies See this story in: The Financial Express (Web & Print Edition) Mumbai: The Tata group may have just managed to fend off major labour unrest among the Corus workforce by disbursing a much-awaited bonus, but there's another brewing on the Jaguar Land Rover (JLR) front. After Tata Motors recently announced its plan to shut down a Jaguar Land Rover plant in the West Midlands by 2014, it gave rise to speculation that the company is looking at outsourcing JLR production to India and China. This has got the JLR workmen worried. As per reports, British union leaders will meet lawmakers from a key manufacturing belt to express their reservation over the reported long-term plans to outsource parts of JLR production to India and China and concern over the fate of thousands of workers at JLR sites. The unions are believed not to involve owners of Tata Motors at this point of the negotiations. We are concerned at JLR plans to outsource production development to India and China, and the possibility of a production facility in China, which could pose a long-term threat to JLR in the UK, Des Quinn, regional industrial organiser for Britain's largest union, Unite, has been quoted in a report. Tata Motors has been looking at ways to make JLR leaner and cost-effective and had said that its move to close one of the West Midlands plants was to achieve that aim. Unions have also expressed concern about company's move to integrate the JLR brand name, saying, The Tata management assured us two years back (before acquiring JLR) that Jaguar and Land Rover are iconic brands and the brand names will be protected. They have also urged Tata to consider bringing the European version of the Nano to Castle Bromwich to stave off a potential shutdown. Both Corus and JLR were acquired by the Tata Group Tata Steel and Tata Motors at the peak of economic activity, but were caught in a demand downswing on the back of a slowdown in Europe, putting pressure on the workforce. The Corus staff had been protesting after bosses told them they would not pay bonuses for the first quarter of this financial year. However, they will now be given double bonuses on their next payday. About 4,500 Corus steelworkers in Scunthorpe are to receive a bonus worth over 1,000 per employee before Christmas. In an e-mail response to queries from FE, a Corus spokesperson said, Corus is pleased to confirm that it has advised the trade unions that it will pay outstanding UK bonuses for April-September 2009. As a result of this decision, the company looks forward to positive discussions with the trade unions about future bonus structures that will reflect the overall company position. Kirby Adams, CEO of Tata Steel, UK, while announcing Tata Steel's standalone Q2 results, had said the company is working out an agreement with workers on how to calculate the bonus for the current year. The bonus for the two quarters is said to amount to more than 9% of average earnings. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Economic Times, Zigwheels If there had to be a balance struck between local flavour and international flavour, Volkswagen India seems to be managing it with aplomb. After the recent announcement of its nearing-completion production facility for its small cars at Chakan near Pune, the company has announced its plans for launching three of its big brands in India - the chic new Beetle, the massive Touareg SUV and its flagship luxury sedan, the Phaeton. This could be seen as a move to highlight the company's prowess in the automotive industry by bringing in some of its most appreciated international models into the country. The three models will come into India via the CBU route, and should work towards creating a more upmarket image for the brand in India. The launches for these cars are expected to take place within the next two to three months. Amongst these, the new Beetle will go head-to-head against the Fiat 500 - already present in India to serve pretty much the same purpose for Fiat. The neoretro machine still stays one of the most feel-good cars internationally bringing back memories of the cute 'ol German people's carrier. The car already carries a steep price tag internationally thanks to its niche appeal and will cost even more owing to the CBU duties, so getting desired volumes for this small car could be somewhat of a task. On the other side of the spectrum will be the massive Volkswagen Touareg SUV, the very car on which the Audi Q7 and the Porsche Cayenne are based. And incidentally, the Touareg will also compete with the aforementioned two Germans for market share in India, but should offer lower pricing or significantly more equipment at a similar price point. Add to that the Touareg's striking road resence and rallying pedigree, and you suddenly have an interesting proposition on hand. And last, but not the least is the Phaeton, VW's flagship saloon and arguably one of the best engineered cars in the world. The Phaeton is classy car by any means, though it's understated design has left it a little less equipped to make a dent against the more established German luxury saloons like the Mercedes-Benz S-Class and BMW 7-Series. Volkswagen will being a phased roll-out of these "big three" which is expected to be complete in the next two or three months. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Varad More The Economic Times, Zigwheels The 2010 model line-up of the Range Rover brand has been officially launched in India. Land Rover's flagship brand, Range Rover has always been considered as one of the finest marque in the luxury 4x4 segment across the globe. For the 2010 line-up, Range Rover has introduced an all-new supercharged V8 petrol engine, which makes 510PS of power. The other variant retains the trustworthy V8 diesel motor pumping out 271PS of power. Range Rover claims that the new V8 petrol motor is more powerful and refined without sacrificing fuel economy or low emissions. The new model is the first one to get Range Rover's radical new 'dual view' infotainment touch screen technology that allows for an individual viewing experience to the driver and the co-driver. To make it simpler, the LCD screen can display two different programs at the same time, which means that while the co passenger is enjoying a movie, the driver can view instructions or other carrelated data on the same screen without any disturbance. In terms of styling and design, the 2010 model gets minor cosmetic changes like new headlights, a larger grille upfront and fresher design of the LED rear lamps as well as the LED indicators. Also on the interior of the new Range Rover, the instrument console gets modern-day technology with a 12" TFT screen that displays all the essential information to the driver with the help of virtual dials and graphics. Known across the world for its ultra-stylish yet robust appeal, this behemoth is priced at Rs. 98.5 lakh (exshowroom, Mumbai). Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Muntaser Mirkar The Economic Times, Zigwheels The Indian automotive segment has been devoid of a compact SUV for a while now and all set to fill that space is the Premier Rio - recently launched and ready to do business. The Rio may be a familiar face to look at especially because of its huge success in South-East Asian markets over the past few years under the Chinese brand Zotye, but it marks a whole new beginning for Premier in India. The company that became a house-hold brand in the 90s for its passenger vehicles such as the Padmini, 118NE and the Uno is hoping to make a comeback not only into the Indian auto market but also into the people's hearts with the Rio. The Rio is a compact SUV that has found its way to Indian shores through a long term component and kit supply agreement with Zotye including future models and variants of the current product. Armed with a 1489cc turbo diesel engine that is a direct derivation from the Peugeot TUD5 powerplant from many years back, the Rio is good for 64.8PS of power at 4000rpm. Torque figures stand at 152 Nm between 2250 to 3000 rpm. Interiors are cozy and extremely carlike on the Rio which should appeal to the kind of market Premier is aiming to target the Rio at. Summed up, the Rio comes across as a very cute, compact and efficient option to a small hatchback in India. And then comes the Rio's price tag. Available in three variants, all of which come equipped with power steering, front power windows and central locking and a CD/MP3 player, the Rio's base variant the Ex is priced at Rs 5.2 lakh (ex-showroom Pune) with the tag reading Rs 5.95 lakh for the top-ofthe-line Lx variant. While the Ex doesn't have air conditioning and alloy wheels, the middle and most-likely-to-sell variant, the Dx packs in all of that at a price of Rs 5.5 lakh (exshowroom Pune). The Lx goes one up on the Dx with the addition of alloy wheels, roofrails, ABS and EBD for its price. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Priyadarshan Bawikar The Economic Times, Zigwheels It's time for motor sports enthusiasts in India to rejoice, as starting next year, Volkswagen will be gracing the national road racing scene with a one make championship featuring the company's soon to be launched car - the Polo. At the finale of the DTM - the German Touring Car Championship - at the world-famous Hockenheimring race circuit in Germany, Volkswagen officially announced the signing of the Letter of Intent with JK Tyre & Industries Limited to bring the globally acclaimed Volkswagen Polo Cup to India in 2010. Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG who was present on the occasion commented "Volkswagen's commitment to the Polo Cup India represents a long term initiative designed to promote the development of motor sports in India." It is the first time in the history of Indian Motor sports that an international automaker has launched a racing series of this kind. The format of the Polo Cup India will remain pretty much unchanged from its German counterpart, where all the cars are prepared and tuned by Volkswagen and drivers or their mechanics are allowed to tweak extremely minor aspects of the car's setup. Volkswagen Motor sport Director, Kris Nissen, explained that this was to keep all participating vehicles identical in terms of performance to provide a level playing field and only the difference in driver skill would determine who would take the top honours. One distinguishing factor that the Polo Cup India will have over the German championship is that as opposed to petrol motors, the Indian racing Polos will be powered by Volkswagen's 1.6-litre TDI diesel engine. The company is also looking to recruit engineers and mechanics from its Indian talent pool to convert the humble road going versions of the Polo to track-racing fire breathers. The Polo Cup serves as a touring car training school of sorts for young racing drivers and the company believes that not only will it help develop Indian motor sports culture, but might also provide a stepping-stone for young talented racing drivers who wish to graduate to international-level touring car racing championships. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Vikram Gour The Economic Times, Zigwheels Honda Siel Cars India Ltd has launched a new version of the CR-V. The upgraded version is set to bring in higher levels of quality and offer customers more bang for their buck. It might be a minor makeover late in the year, but welcome nevertheless. The front grille has been changed to feature a two step look and the hood has been re-sculpted as well. Honda has also revised the front bumper which now houses oval shaped fog lamps. At the rear, it is only the bumper that has come under the scalpel of the designers. The changes however have made the new CR-V 45mm longer than its predecessor however interior dimensions are the same. To spruce up the exteriors even further, Honda has done away with the 7 spoke alloys and the new CR-V now comes shod with 10 spoke alloys that not only look better but lend a rather sporty touch. Coming to the interior, the high end 2.4 L model boasts of steering-mounted Cruise Control system. Other improvements include six airbags with occupant position detection system (OPDS), a new improved music system with a USP port in the upper glove box, a lightened color scheme for the interiors, chrome audio controls and gear knob. Overall, the interiors have been spruced up to give the vehicle an enhanced luxury feel. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Vikram Gour The Economic Times, Zigwheels The 1.3 litre Multijet diesel engine from Fiat has been a success story in its own right and the numerous awards it has bagged over time, including the prestigious 'International Engine of the Year' in 2005, sheds some light on just how well-liked and refined a motor it is. The surprise is that it isn't just a popular engine employed in the Fiat family, but the 1.3 Multijet has found a growing regard with other car manufacturers as well. In India the engine can be found under the hood of the Linea, Punto, Palio and the cute 500 which all belong to the Fiat stable, however the small common rail diesel unit also does duty under the hood of the Swift and Swift Dzire DDiS from MSIL and Tata employs the very same engine in its Tata Manza and Indica Vista. If that list isn't long enough, factor in the international acceptance of the 1.3 multijet, which has been used by makes such as Alfa Romeo, Citroen, Ford and General Motors. Its versatile nature and the fact that it is possibly one of the best designed engines in recent times make it an obvious choice for hatchbacks and midsize sedans across the globe. Companies obviously employ the engine in different states of tune, but that also goes to show just how accommodating an engine it is to take on varied personas without losing its essence of being a refined frugal unit. For Fiat India, this engine spells more than just having the benefit of great technology at your disposal. The 1.3 Multijet has a growing fan following and those in the know will understand that the company has a reputation to uphold when it comes to utilizing this engine in their model line up. Fiat India has not had the luxury of sailing on smooth waters in India like Maruti Suzuki or even Honda. The fight has been tough and on many occasions the company has had to pull back and lay out a new strategy, however with the advent of the new international range of Fiat's available in the country, the company has managed to pull off a resurrection of sorts and this time they are not looking at playing second fiddle, for the company has come in whole hog with their latest models and the best of technology at their disposal. Fiat India doesn't intend on being a niche player or one of the smaller fish in the country and judging by their present line up, you will be hard pressed to remember what Fiat India had on offer just a few years ago! That's right, the Siena lies in the distant past and the new breed of cars have given Fiat India that much needed image change. The striking Linea sedan, the well appointed large Punto hatchback, the functional Palio and the uber cute and rather expensive 500 are testament to the fact that Fiat is taking the Indian market seriously and their products go to show that the company's understanding of the market is now thorough. With the introduction of these new models over the past year and a half, Fiat has also ushered in their latest in terms of engine technology, namely the 1.3 Multijet diesel. The petrol FIRE engines have their own winning attributes, but in a market that is increasingly turning to diesel mills to power even the smallest of hatches, the 1.3 Multijet has its work laid out. No other engine has been shared as abundantly amongst manufacturers as this in India. In recent times, the only other engine to witness such cross manufacturer usage would be the now defunct Peugeot TUD5 motor which found itself under the hood of a Premier Peugeot 304, Hyundai Accent DLS, Maruti Suzuki Zen and Maruti Suzuki Esteem, but that was a short lived experience and nowhere as popular as the 1.3 Multijet. Having driven the 1.3 Multijet in its numerous avatars present in India, I can tell you that it is one versatile engine. For a country that doesn't require high speed driving as much as low end drivability, this engine makes sense, for not only is it reasonably powerful it also offers the holy grail of being a very frugal drinker. Despite existing in different states of tune under the various Fiats' and other models that it powers, the 1.3 diesel unit never fails to achieve a rather high fuel efficiency figure anywhere between 15-20 kilometers to the litre. Coupled with the fact that it is a well engineered motor and literally rock solid in terms of quality and performance the 1.3 Multijet works out to be one of the most ideal engines to grace our land. There is no doubting the fact that Fiat India is making all the right moves in recent times. The introduction of their international model line up, their tie up with Tata and their increased focus on service aided by the fact that they are bringing in their best in terms of engine technology will surely go a long way in polishing the brand image. The 'Fiat Diesel Drives India' tour also stands as testament to the company's Indian outlook by illustrating the brilliance and ideal fit of their technology to Indian driving conditions. The arguments that had Fiat India in a fix are slowly being laid to rest. It might be premature to say that the company has become a force to reckon with but one this is sure, the ship is sailing in the right direction and the coming years should unravel a different story. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Yogima Seth The Financial Express (Web & Print Edition) New Delhi: Keeping with the buoyant sales of passenger cars and two-wheelers, truck sales (5 tonne to 49 tonne) in the country jumped over 59% in October, mainly due to lower base effect of last year, low cost of finance and hardening of auto emission norms in various parts of the country. While numbers from the Society of Indian Automobile Manufacturers (Siam) are yet to be released, as per the Indian Foundation of Transport Research and Training (IFTRT), 19,636 units of trucks were sold in the country last month, against 12,335 units sold in October last year, a growth of 59.2%. This is in line with similar growth observed by industry players in the country. Total commercial vehicle sales of Tata Motors, the country's-largest commercial vehicle manufacturer, went up by 59% in October at 30,541 units as compared to 19,154 units during the same month last year. Ashok Leyland, the second largest commercial vehicle manufacturer in India, registered a growth of 65.8% in total domestic sales last month at 4,934 units vis--vis 2,976 units in October 2008. The auto finance cost in the past three months has come down from the internalise rate of return (IRR) of 15% to 10.6%. This, coupled with improvement in truck freight rates over the past three months, has brought truckers back into the buying mood, said SP Singh, coordinator, IFTRT. As per a Mumbai-based analyst, the introduction of new emission norms for commercial vehicles in India from April next year has led prospective buyers to advance their purchase before the prices go up as the deadline nears. Truck sales accelerate 59% in October Yahoo India (Web Edition) Lijee Philip, Nandini Sen Gupta & Hemamalini Venkatraman The Economic Times (Web & Print Edition) The $500-million joint venture between Nissan and Ashok Leyland to manufacture light trucks and engines is facing a massive scale down, adding to the troubles of Nissan-Renault boss Carlos Ghosns jinxed India plans. There will be a substantial reduction to the original plans for investment in the 50:50 joint venture due to the tight financial situation globally, Dheeraj Hinduja, vice-chairman of Ashok Leyland, told ET NOW. Originally, the plan was to have a new factory for our JV with Nissan in Tamil Nadu. But following the financial meltdown, we decided to optimise the return on investment and will now use Ashok Leyland facilities as well as the Renault-Nissan plant, Mr Hinduja said. The joint venture will use Ashok Leylands Hosur facility to make light trucks, said a person familiar with the development. The Hosur facility will start producing 3,000 units in 2010, which will be ramped up to 39,000 units in 2012 and 65,000 units in 2015, he said, requesting anonymity. This is the third venture of the Japanese-French combine to face problems in India after its partnerships with SUV and tractor maker M&M and two- and three-wheeler maker Bajaj Auto ran into trouble. While its partnership with M&M is in trouble over the poor performance of the Logan Sedan, the ultra low-cost car venture with Bajaj Auto is facing branding and other issues. Nissan-Renault boss Carlos Ghosn, who recently went on record saying he may end up with only one partnership in India, is scheduled to visit the country next week to meet Bajaj Auto managing director Rajiv Bajaj and top officials of M&M and Ashok Leyland. Ashok Leyland is currently focusing on two alliances-with John Deere to make construction equipment and with Continental AG to make electronic architecture for buses and trucks. These 50:50 partnerships are crucial diversifications for the company, Mr Hinduja said. Despite the difficulties, the Ashok Leyland-Nissan JV is still on target for an early 2011 commissioning. The product rollout from the John Deere JV is also expected to start in 2011. Ashok Leyland is also looking at inorganic growth opportunity wherever theres synergy in terms of technology or geography, Mr Hinduja said. When it was first announced, the Ashok Leyland-Nissan partnership was conceived as three JVs. A vehicle manufacturing company in which Ashok Leyland will hold 51% stake to Nissans 49%, a engine and transmission making company in which Nissan will have 51% stake and a technology company in which both will have 50% stake. In addition, the two partners announced that they were looking to leverage each others dealer networks in specific global markets. For example, providing Nissan access to Ashok Leylands dealers in India and Ashok Leyland access to Nissan dealer networks in specific export markets. Ashok Leyland was stung during the economic downturn in the first half of the current fiscal year. Total sales fell 38% to 21,990 units in the April-September period over the corresponding period last year. During the same period, the companys domestic sales slumped 40% to 19,392 units and exports dropped 21% to 2,598 units. But sales recovered in October with a 66% growth at 4,934 units as against 2,976 units in the same month last year. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" PTI See this story in: The Economic Times (Web & Print Edition) Mumbai: Tata Motors on Wednesday said it has begun distribution of its Prima range of World Trucks, which was unveiled in May this year. The distribution has begun with select customers in Gujarat, Maharashtra, Rajasthan, Delhi & West Bengal, a company press release said here. The crew for these trucks, which are being distributed, has been trained at Tata Motors' manufacturing facility in Jamshedpur. Prima 4028-S is a tractor-trailer, priced at Rs 21- lakh (ex-showroom Delhi), and that with the trailer Rs 31- lakh, ideal for carrying freight up to 40.2-tonnes of gross combination weight. The company has already equipped its country-wide service network to support the Prima range, the release said. The 4028 S tractor-trailer will be followed during the course of the financial year with three other products-two 49-tonne tractor-trailers and a 31-tonne tipper. They are all BS-III and BS-IV compliant, the release added. The Prima range comprises about 10 major variants of multi-axle trucks, tractor-trailers, tippers, mixers and special application vehicles. Tata Motors starts distribution of Prima range of trucks Business Standard (Web & Print Edition) Swaraj Baggonkar Business Standard (Web & Print Edition) Mumbai: Tata Motors decision to promote its mini-truck as an FMCG brand has worked The 1.5x2.2 meter area where Ravindra Salunkhe sells vegetables and fruits at the upmarket Cuffe Parade in South Mumbai may look like just another case of an unauthorised hawker occupying prime space. But the mobile shop is actually a Tata Motors Ace, the companys sub-1 tonne cargo vehicle. Salunkhe, who hails from Kolhapur, borrowed Rs 1 lakh from his brother and the balance from ICICI Bank to purchase the Ace four years back. He pays an equated monthly instalment (EMI) of Rs 6,500 without any sweat. The reason: his mobile grocery unit earns him a monthly income much higher than his EMI payout. No surprise then that about 90 per cent of Ace buyers are actually first time vehicle owners who want to start their own business, using the vehicle something that has encouraged Tata Motors to go ahead with the launch of its one-tonne Super Ace truck in December. The Super Ace will produce double the power of the existing 750 kg Ace, offering higher utility and costing 40 per cent more. Ravi Pisharody, president (commercial vehicle business unit), Tata Motors, says, A large chunk of those who wish to start a small business find Ace useful. The upfront payment of just Rs 50,000 adds to the attraction of Ace. Even though the vehicle was designed as a last mile solution in construction and building sites and factories, it has evolved as a vehicle that meets even individual consumer needs. We have to explain to the unsuspecting target customer who is otherwise a three-wheeler buyer that Ace is a very versatile product, which can provide employment to them too, Pisharody added. Buyers are obviously listening. Ace, launched in May 2005, recorded its 100,000th sale in less than 22 months even though it costs Rs 1 lakh more than the three-wheeler cargo vehicles. Ace now sells close to 200,000 units per year. Tata Motors has laid extra emphasis on positioning the product differently than conventional three-wheelers. The company says the success of Ace proved beyond doubt that the Indian market is not as price conscious as is projected widely, if the consumer is convinced about the products quality and durability. Ace, thus, has a 60 per cent share in the last-mile cargo vehicle segment that sells 18,000 units a month. Marketing the product and creating a brand identity for Ace wasnt an easy task as Tata Motors didnt want to stretch the ad budget beyond a point. Traditionally, commercial vehicles are rarely advertised as they are marketed to large fleet owners. But the company decided to market Ace like an FMCG product without going in for heavy ad spend. The solution, Pisharody says, was found in unconventional cost-effective methods like partnering with Moser Baer (for advertisement home video) as research showed that film viewership is quite huge among the target consumers. Ace was also promoted in a Marathi and Tamil movie as well. To make sure that production kept pace with demand, Tata Motors handpicked a few dealers and equipped them to handle the increasing sales volume in the most efficient manner. The other problem was that the traditional Tata Motors network of CV dealers was geared up to sell only large trucks and busses. The company solved the problem by setting up a single mother dealer in most popular markets with eight to 10 service branches affiliated to it. The massive dealer channel expansion has led to a touch point base of 1,100 across the country, which is much more than what most three-wheeler manufacturing companies have. Even as Bajaj Auto, Mahindra & Mahindra and Ashok Leyland plan a fresh foray into the four-wheel cargo segment, Tata Motors has gone in for the kill by launching fresh variants of the Ace. The company has already launched a fuel efficient Ace (EX), which delivers 6-10 per cent higher mileage than the current Ace. It is priced Rs 10,000 more. With the launch of the new variants, Tata Motors will increase the production of Ace and its by-products to 250,000 units a year from 180,000 units currently. Meanwhile, Salunkhe is planning one more Ace up his sleeve, quite literally. He is planning to buy another Ace this time from his own resources. That must be music to Tata Motors ears. The Hindu Business Line (Web & Print Edition) Chennai: Ashok Leyland sold more vehicles in October than it did in the same month last year, but fewer vehicles than it sold in September 2009. However, its sales of both passenger and goods commercial vehicles were up compared with both October 2008 and September 2009. Jaishankar Jayaramiah The Financial Express (Web & Print Edition) Bangalore: Volvo Buses India, the Indian arm of Sweden-based commercial vehicle major Volvo Bus Corporation, is likely to post healthy growth in sales in 2009 on the back of stimulus package provided by the Centre to bail out ailing automotive sector. Volvo Bus India is a 70:30 joint venture between Volvo Bus Corporation and Indias Jaico Automobiles, part of Azad Group. We will post a whopping 40-50% year-on-year growth in sales in 2009, Akash Passey, managing director of Volvo Buses India, told FE on the sidelines of Sweden-India Noble Memorial Seminar in Bangalore. The company, which has its manufacturing unit near Bangalore, sold around 440 buses last year, he said. Sales in 2009 would touch 550-600 buses, Passey added. He said sales increased owing to the stimulus package announced by the government. Under the Jawaharlal Nehru National Urban Renewal Mission in January 2009, the Centre had announced financial assistance for states to buy buses for the urban transport system. The scheme was expected to generate businesses worth Rs 4,000 crore for the Indian automotive industry that was hit due to economic slowdown. Volvo rides high on stimulus pkg Yahoo India (Web Edition) The Hindu Business Line Mumbai: Eicher Motors Ltd has informed BSE that the Board of Directors of VE Commercial Vehicles Ltd. (VECV), a subsidiary company of Eicher Motors Ltd., (EML) in its board meeting held on October 30 has decided to explore the further business opportunities in the field of engineering design services along with Vinn Group AB of Sweden (a joint venture company between Vinn Group and Volvo Technology Transfer AB (VTT), a wholly owned subsidiary of AB Volvo) for aligning its Engineering Design Services Div ision along with EES Inc., US and its two subsidiaries in China (collectively referred as (EES Division). For this purpose, a non-binding Memorandum of Understanding (MoU) is being signed amongst Vinn Group AB of Sweden, VECV and their respective shareholders. The objective of the MoU is to explore the alignment of EES Division of VECV with Vinn Group AB, Sweden through an efficient structure. The Economic Times, Zigwheels The Commonwealth Games in 2010 have been ushering a number of changes for New Delhi and as the infrastructure of the capital city gets sorted out and the public transport gets a spruce up, the doors of opportunity have opened for Ashok Leyland as the Delhi Transportation Corporation (DTC) have given the company a tender to provide ultra low entry (ULE) buses. Till date the new low floor city buses have been provided by Tata, however Ashok Leyland has managed to bag a sizeable order of 875 buses from DTC in order to cater to the growing demand from DTC which is looking at a full revamp of their fleet by the time the Commonwealth Games take place. Further to this, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme provided by the Ministry of Urban Development (Government of India) is looking at having these modern buses incorporated in state and local transport bodies across the country, which has given the bus industry a solid stimulus and the need to expand their operations. Keeping up with the demand has not only led Ashok Leyland to ramp up its production at the company's state of the art Alwar plant but also start production of these buses at its South Indian facility as well. It is however the Alwar plant that is going to lead the charge on the ultra low entry (ULE) buses for the major goal at the moment is to deliver all the 875 DTC buses by February 2010, out of which 50 have been delivered to date. Incidentally the Alwar plant boasts of having 352 acres of land with a built up facility of 20,000 square meters with some of the best machinery in the world employed to make these buses. The Alwar facility has increased production by 50 per cent in order to meet the February 2010 deadline. For DTC, the ULE buses will be provided in both air conditioned and non air conditioned models. Each bus has a floor height of 390mm with a 'kneel' function to provide step-less entry. The buses are 12 meters long and are built on a semi integral chassis, with a rear mounted engine that generates 230hp and is mated to an automatic transmission. The ULE buses can seat up to 35 passengers and have ample space to accommodate a number of standing passengers as well. Under the JNNURM scheme 5000 buses will be introduced to various state transport undertakings. Out of this amount 250 units will be of the ULE format and Ashok Leyland has procured the initial order to supply 200 such buses. The remaining buses will be semi-low floor models with either one or two steps. For these models, Ashok Leyland is set to provide the chassis only. The economy is bouncing back at a steady 6 per cent growth and the commercial vehicle sector is also witnessing a robust turnaround phase. For the Hinduja flagship Ashok Leyland the timing couldn't have been better, for demand is growing and the Alwar facility is running at full steam. The company has already registered a 31.8 per cent rise in Net Profit for the second quarter this fiscal and is looking at closing this year posting a double digit growth. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Muntaser Mirkar The Economic Times, Zigwheels The battle for domination in the compact truck segment has begun and drawing first blood is none other than one of India's largest players in the automotive sector - Mahindra. Derived from the Hindi word of the same pronunciation 'Jeeyo' which means 'live', the Gio aims at elevating current three-wheeler goods carrier owners to a four-wheel status while adding to the vehicle's inherent design-oriented advantages. The Gio comes about as a low maintenance, fuel efficient option with modern styling and some very clever ergonomic touches never seen before in this category of vehicle. At the heart of the Gio is a 441cc, 9.1 horsepower engine from Kohler USA. The unit was developed in close connect with the engineers at Mahindra and delivers 27 kmpl. Coupled with the low maintenance engine is a 4-speed gearbox with reverse gear. The nearsquare cargo box with spring leaf suspension and a rigid rear axle that enhances load stability and MacPherson struts in the front make for an effective setup for intra-city load lugging. On the outside, the Gio looks pretty much like a three wheeler with a new nose, but that said, the typical Mahindra front end has given it some mean character to flaunt. Mahindra has given the Gio a very car-like ambience that includes a dash mounted gear shifter, adjustable cushioned bucket seats and roll down windows - a major attraction in that segment. And all of that will be made available for just Rs 1.65 lakh (exshowroom) for the BSII version while the BSIII version will retail for about Rs 30,000 more. Compared with threewheelers of the same tonnage and with four wheeled vehicles of double the carrying capacity, the Gio seems competitively priced to entice buyers to step up to Mahindra showrooms across the country. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Shares of Force Motors have been gaining, of late, on talk that the bus and truck makers joint venture with Europes thirdlargest truck and bus manufacturer MAN Nutzfahrzeuge AG of Germany postponed indefinitely in November 2008, is back on track. The stock closed at Rs 223 on Wednesday, and has gained 31% over the past one month. Copyright 2009, Bennett, Coleman & Co. Ltd. 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| Sohini Das Business Standard Kolkata: After growing at around 30 per cent a year for the last few years, Volvo CE a part of the Sweden-based Volvo Group and a leading player in the $3-billion construction equipment (CE) industry came up against a slowdown in demand. Having crossed a rough patch, the company is set to launch new products this month even as it plans to increase localisation at its Bangalore plant in the coming years. In a chat with Sohini Das, Managing Director (India Operations) Mrityunjaya Singh says, while short-term forecasts are strong, Volvo CE plans to introduce new products in India in a phased manner. Excerpts: Do you see a pick-up in demand? The quarters ended December 2008 and March 2009 saw the full impact of the recession. The market has been stabilising from April onwards and has been steadily growing. The trend has been positive up to October this year and short-term forecasts are strong. Your Bangalore plant manufacturers around half of Volvo CEs products, while the rest is brought in from countries like Korea and Sweden. Do you have any plans to increase localisation here? Locally manufactured machines comprise less than 50 per cent of the total units sold. Having an established production and vendor base gives us a platform to introduce locally built machines based on the companys strategic objectives. Volvo CE introduces a new product every one or two years and we will continue to introduce products for India in a phased manner in the coming years. Currently, our portfolio here has around 30 products. Our plant in Bangalore manufactures road machinery and we enjoy the third position in the market for that product. Nonetheless, our product positioning targets are achieved through a mix of machines imported from our various plants in the world and those manufactured in India, the imported part being the major revenue generator. Any improvement in our current position will be consequent to the localisation of some of the higher selling imported machines. What would be Volvos focus areas in the coming quarters? Mining and road construction are our priority segments, which we address with around 80 per cent of the equipment used. They account for just over 50 per cent of our total revenue. Are you planning any launches in these sectors? Yes, launches of hard products (machines) and soft products (services) are planned during the EXCON 2009 (the 5th International Construction Equipment and Construction Technology Trade Fair exhibition) this month-end at Bangalore. We would launch solutions for loading and excavation, as well as compaction solutions. What about your rental business? We have now rental offerings available from all 11 dealerships in the country. Out of these, four have been elevated to the full franchise of Volvo Rents a business arm of ours that provides rental software, training and support to rental franchises. Other dealers will be covered under this programme in 2010. Similarly, used machine options are also available from these dealerships and, to facilitate faster repair of used machinery, we have built three full-fledged equipment workshops at our dealerships. I am still bullish on this subject as it has remained largely unstructured so far. There is a huge opportunity for serious players and it would surely be a growth driver for Volvo CE. What percentage of your production is exported? Do you have plans to tap newer markets as well? Also, is there any cost advantage in exporting from your India operations? We have just scratched the surface of the export potential of products made at our Bangalore plant. With the cost advantage we have, which is at 15-25 per cent, there are opportunities emerging in South-East Asia as well as other continents like Africa. While this will be an area to watch out for, one has to meet changing environmental norms across countries with every passing year. However, several countries in the Saarc region that are not immediately affected by the fast-changing environmental norms would be the ones to watch out for. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Hindu Business Line New Delhi: Motorbike manufacturer Royal Enfield said on Wednesday that it plans to invest Rs 65 crore to double the capacity of its Chennai plant from 50,000 to one lakh units by 2013. This is apart from the Rs 65 crore the company has already invested in the plant. We will add a production capacity of about 10,000 units in 2010 and by 2013 we aim to reach annual production of one lakh units, said Mr R.L. Ravichandran, CEO, Royal Enfield, at the sidelines of a bike launch. The company has generated revenues of Rs 300 crore in the January-September period, said Mr Siddhartha Lal, Managing Director and CEO, Eicher Motors. He added that at present monthly sales are 4,500-5,000 units, while it is targeting to sell about 50,000 units in the whole year. We are looking at a 25 per cent growth in bike sales and a 20-30 per cent growth in revenues, he said. Exports Mr Lal added that Enfield exported about 1,700 bikes until September in the current calendar year, which is about 5 per cent of the total production. We aim to increase exports by about 5 per cent every year. In the next four to five years, exports should be 15 per cent of our total sales, he said. On a descending order of export volumes, Enfields primary overseas markets are the UK, US, Germany, France and Italy, followed by Japan and Australia. In the future, we will go to Africa, Latin America and the Middle-East, he said. New models The Eicher Group company launched the Classic 500cc and 350cc motorbikes in the country, priced at Rs 1,24,918 lakh and Rs 98,086 respectively. The bikes are powered by an all-new single cylinder unit construction engine with fuel injection technology. According to the company, the new engine platform has 15 per cent fewer parts than the previous one, making it lower on maintenance. We have doubled our service interval for the new bikes to 6,000 km, said Mr Ravichandran. The motorbike, launched overseas in October 2008, has sold more than 2,000 units, said Mr Lal. Mr Lal added that the product profile for India would still consist mostly of 350cc bikes with the carburettor technology, although it will slowly be replacing its older engines with the new fuel injection-based ones. It is mainly a pricing challenge for the company, margins are obviously higher in exports, he said. To relaunch Machismo He said that Machismo would soon be re-launched with a new design and engine change. We will change from the lean burn engine to the new platform and will announce it shortly, he said. On product upgrades to meet the new emission norms which come in place in April next year, Mr Lal said that the company would look to upgrade drivability and design as well, besides the engine. When asked about the October sales of Eicher Motors, he said that it had shown a growth of around 70 per cent. Last month we sold around 2,300 commercial vehicles in Eicher and 50-60 from the Volvo joint venture, he said. Enfield will double capacity in 3 years Daily News & Analysis Enfield plan The Telegraph Royal Enfield back to the future The Pioneer New bikes from Royal Enfield Royal Enfield unveils Classic 500 Hindustan Times Riding on new models, Enfield seeks bigger pie The Times of India PTI See this story in: The Economic Times New Delhi: Eicher Motors Group company Royal Enfield has launched two bikes, Classic 350 and Classic 500, priced at Rs 98,086 and Rs 1.25 lakh (ex-showroom Delhi) respectively. The Classic 500 is powered by a single cylinder 500 cc unit-construction engine (UCE) supported by electronic fuel injection. "Royal Enfield has an extremely rich heritage of practical leisure motorcycling for over 100 years. We will use this philosophy and the UCE platform to design and introduce a wide range of motorcycles over the next three years to span a variety of motorcycling genres such as classic sports and touring," Eicher Motors Managing Director and CEO Siddartha Lal told reporters here. IANS See this story in: The Economic Times, Yahoo India Chennai: After an entry into scooters, auto manufacturer Mahindra and Mahindra will launch a motorcycle next year, a senior company official said on Wednesday. "The company is working on motorcycle models and the first model will be launched in 2010," said company vice-president of sales and customer care Sanjay Mittal. "We would like to be an end-to-end player in the two-wheeler segment, launching scooters and motorcycles," Mittal told reporters at the Tamil Nadu launch of two new scooters -- Rodeo (Rs.41,299) and Duro (Rs.38,299). "With three 125cc scooters, we think we have a product in all the major market categories. We may look at 100 or even lower powered scooters for the future," Mittal said. Mahindras entered the two-wheeler segment marketing three 125cc scooter models last year. Declining to disclose the company's two-wheeler sales target for the current fiscal, Mittal said Mahindras sold around 7,000 scooters last month, of which Rodeo and Duro accounted for 5,600 units and the balance by its other model Flyte. The company is in the process of ramping up its two-wheeler distribution network by adding 50 more dealers by the end of this fiscal. "Presently we have 325 dealerships and we will increase our network to 375 dealers by the end of this fiscal," Mittal said. Mahindras ventured into the two-wheeler market by acquiring the business assets of the Pune-based scooter manufacturer Kinetic Motor in 2008. M&M plans to launch motorcycles M&M set to roll out bikes in 2010 The Financial Express Business Standard Mumbai: Harley-Davidson Motor Company India (HDMCI), the wholly-owned subsidiary of the US-based motorcycle maker Harley-Davidson Motor Company, announced the appointment of its national team. Sanjay Tripathi, who was the head of the product planning and strategy department at Yamaha Motor India, would be the director of marketing at HDMCI. Rajiv Vohra, who was responsible for dealer development at Honda Siel Cars India, has been appointed as director of sales and dealer development at HDMCI. Yogesh Phogat, who was working with BMW India, has been appointed as director of operations at the company. HDMCI has also roped in Manish Agarwal, who spent 13 years with Honda Siel, as director of finance, while Navneet Banka has been appointed as manager (sales and dealer development). Banka had worked for three years at Mercedes-Benz. Elizabeth Alderson will join as executive communications and administrative manager. All the executives would report to Managing Director Anoop Prakash, the company said in a press release. Since we announced our plans for the Indian market in August, our aim has been to establish a strong team with the relevant market experience, expertise and passion to build Harley-Davidson as a strong and enduring motorcycle brand in India, Prakash said. As we move towards establishing a strong dealer network and planning our much-awaited India product line-up, it is imperative that we build a strong team, he added. Harley-Davidson announces leadership team for India operations Daily News & Analysis Harley-Davidson forms India leadership team The Hindu Business Line Harley-Davidson team The Financial Express Harley-Davidson appoints India leadership team The Economic Times Harley-Davidson India names leadership team Mint The Times of India New Delhi: As it battles recurring labour issues at its Manesar plant, Japanese auto major Honda has started preliminary work for a new two-wheeler factory in India that may even come outside of Haryana. The company, that just days back threatened to shut its factory at Manesar if the labour issues persisted, said that the need for a new factory would come up in the coming time as it was reaching the peak production capacity at its existing plant in Manesar. "Though there is no concrete action regarding a new factory, we have started a study on the issue," Shinji Aoyama, CEO and president of HMSI, told TOI. Asked whether the company had plans to expand in Haryana or move out to other states, considering that it has faced major labour issues in Haryana, he said all options were open. The company may look beyond Haryana, and would take a final call after ascertaining a variety of factors, Aoyama added. He said a key determining factor would be cordial industrial relations in the area. "This is one of the important factors we will keep in mind while deciding location for a new factory," Aoyama said. Other key determining factors would be location of suppliers as also road infrastructure. Asked about possible investments for a greenfield expansion, he said they could be in the range of Rs 300-400 crore. Currently, the company has a capacity for 15 lakh units at its existing plant. But while this would be sufficient to meet the company's current product portfolio, HMSI would require further capacity considering its plans to launch new models. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Vivek Sinha Hindustan Times New Delhi: The Munjal family-controlled Hero group, better known for its motorcycles, is entering the real estate business, with nearly Rs. 200 crore already invested. The cash-rich Munjals are turning the current slump in real estate into an opportunity as they had no previous exposure in the business historically marked by aggressively priced land deals. The Ludhiana-based group plans to launch over the next two weeks an integrated township in the pilgrim town of Haridwar. The group plans more residential which are expected to be announced over the next couple of years, company officials said. The integrated township at Haridwar will be developed over an area of 50 acres and will have close to 2,000 residential units, Sunil Kant Munjal, chairman, Hero Corporate Services Ltd told Hindustan Times. The company has invested close to a couple of hundred crore rupees for its real estate foray, he said. Hero Corporate Services also has interests in IT-enabled services and corporate training. The plan is to first consolidate our position in Uttarakhand before venturing out to other parts of the country, Munjal said. The Hero group expects real estate to be an important business vertical over the next few years. The current downturn in the real estate sector has provided the company an opportune time to enter residential real estate development as valuations are just right, The company, however, does not wish to have an escrow account, which in effect means that the funds garnered from the pre-launch proceeds of a project is used only for the development of that particular project. The timely completion of Haridwar project with optimum standards will help us establish as a serious player in the sector. We are also banking upon our groups credibility to showcase our prowess in real estate development, Munjal explained. The residential units in the integrated township at Haridwar would have apartments priced between Rs 18 and 20 lakh to Rs 70 lakh. The villas constructed in the project would be priced much higher. The township will have hospitals, schools and shopping complexes, apart from residential apartments. The company expects to start delivering the apartments within two years. We would be targeting NRIs (non-resident Indians) and investors from north India who want to own a house at Haridwar, apart from local people, said Munjal. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Hindu Business Line New Delhi: Auto component manufacturer JBM Group said on Wednesday that it expects its revenue to grow over 20 per cent this fiscal on account of revival in the automotive market. The atmosphere is positive in the Indian automobile industry and the demand is coming back from original equipment manufacturers, said Mr Nishant Arya, JBM Groups Executive Director, at the sidelines of a press conference to announce the launch of JBMs partnership with Dassault Systemes to enter the education sector. Mr Arya said that with sales reviving across segments such as passenger vehicles, two-wheelers and commercial vehicles, the profit margins of the company have also improved. The group is targeting revenue of Rs 3,300 crore in the current financial year, said Mr Arya. Capacity expansion The company plans to spend Rs 400 crore in capacity expansion. We will be supplying to various plants like the Tatas plant in Sanand, Ashok Leylands plant in Pant Nagar besides Toyota, FIAT and Volkswagen, said Mr Arya. He added that the company is finalising discussions with a European firm for manufacturing buses. Initially the products will be rolled out from our Kosi plant in Uttar Pradesh, added Mr Arya. The company would later set up a dedicated bus manufacturing facility in one of Indias auto hubs like Gurgaon, Chennai or Pune. JBM Group has tied up with Dassault Systemes to provide large-scale technology deployment across JBM Groups business unit. The relationship will also extend to JBM Groups recent education initiative, CADMIND, which focuses on high-end design engineering education. The Hindu Bangalore: SKF India opened its global testing centre here on Wednesday, offering its facilities to the entire group spread over 110 manufacturing locations across 28 countries. Despite lower volumes and margins since last year, we have increased our R&D spending by 30 per cent, targeting customers in the faster growing Asia Pacific and Latin American markets. In India, for example, the automotive market is picking up again and we are already supplying the two-wheeler segment. China is growing faster right now, SKF Group President Tom Johnstone told reporters. SKF India Managing Director Rakesh Makhija said there were five plants in India, including two under construction and major customers included automotive manufacturers and Indian Railways. We are orienting our research on new products towards what customers expect in terms of both cost innovation. We expect demand, sales and margins to stabilise by next year, he said. SKF opens global testing centre in City Deccan Herald The Hindu Chennai: Hinduja Foundries has achieved a turnover of Rs. 100.70 crore for the quarter ended September 30, 2009, as compared to Rs. 119.86 crore in the corresponding period of last year. The profit before tax for the quarter was up by 13 per cent at Rs 2.24 crore (Rs.1.98 crore). Commenting on the results, V Mahadevan, Managing Director has stated in release that the additional investments at Sriperumbudur unit are being commissioned according to plans. The Hindu Business Line Mumbai: Elgi Equipments Ltd has informed BSE that the board of directors has fixed the record date as November 13, for payment of 75 per cent interim dividend (75 paise per fully paid share and 11.25 paise per partly paid share of the company), and to id entify the shareholders of partly paid up shares who are liable to pay the balance amount of Rs 12.75 per share towards partly paid shares of the company. Elgi Equipments recommends interim Roudra Bhattacharya The Hindu Business Line New Delhi: The Gurgaon-Manesar auto belt may be heading for another bout of unrest as labour unions threaten to strike work across the belt on Friday. The unions have called the strike due to a deadlock in the negotiations at Rico Auto. The main demand of the workers remains the reinstatement of all of the 16 workers that the company had suspended in late September. According to a spokesperson for the striking workers, the company has agreed to take back only nine of the 16 workers. Said Mr D.L. Sachdev, National Secretary, All India Trade Union Congress (AITUC), The unions have decided that if there is no decision by Thursday evening, they will go on strike. This issue is not only limited to Rico, but Sunbeam as well. He added that the company should consider lighter punishment for the seven remaining workers, if found guilty after enquiry. Among other issues, workers are demanding that the company withdraw the cases filed against the workers, besides recognising their union. Rico Auto management was not available for comment. However, according to sources, a meeting has been scheduled between the workers and the management on Thursday to try and work out an amicable solution. The negotiations between the company officials and striking workers, along with Government officials as mediators, have been going on for weeks now, but no concrete decision has yet been arrived at. The unrest at the auto belt, which affected auto component manufacturers such as Sunbeam Auto and Microtek, had begun around September 21 over various issues such as recognition of union and revision of wages. Since these component manufacturers supply critical parts to automakers Maruti Suzuki, General Motors and Ford, among others, these companies are now facing a shortage which is translating into lower production of the vehicles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Economic Times New Delhi: Indias top steelmakers, including state-owned Steel Authority of India (Sail), Essar and Ispat, recorded up to 30% growth in sales volume and JSW Steels sales almost doubled in October, 2009 over the same month last year, backed by robust demand from automobile and construction sectors. Healthy demand for the metal indicates a sharp turnaround in the economic activity which had slowed down considerably in the second half of 2008. Demand for steel is coming mainly from auto, rural construction and infrastructure sectors. The demand for construction grade steel, which slumped in August due to the monsoon, picked up again during October in some major steel markets, said a senior Sail executive on condition of anonymity. Indias largest steel producer Sail posted 28% growth in sales to 8.5 lakh tonne in October this year. The second-largest private steel maker JSW sold more than 4 lakh tonne in October, 2009, which is almost two times compared to the year-ago period. JSWs crude steel production in October at 4.53 lakh tonne was, however, lower compared to September due to unprecedented rains followed by floods in the southern India in the first week of the month, which disrupted operations at its Vijayanagar plant. We are not carrying last months inventory and have sold whatever was produced. But, this years October sales are not comparable with sales in October last year as companies were sitting on huge inventories last year, said JSW Steel joint managing director Seshagiri Rao. Most steel companies had cut production in October last year due to the global economic crisis and steep fall in demand. This was accompanied by sharp drop in metal prices as imports surged. But the economy started looking up after the government came out with a stimulus package to safeguard the domestic manufacturing industry early this year. Among others, primary steelmaker Ispat Industries also posted double digit sales growth last month. While domestic steel demand continues to remain firm, prices have come under pressure with the fall in prices in the international market. Theres no slag in demand. But there is pressure on prices as consumers are postponing purchases expecting further softening of prices. This has also increased the threat of cheap imports, said an executive at Ispat who did not wish to be named. Steel companies have already reduced prices of flat steel, used for automobile and consumer durable, up to 5% early this week. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sudeep Jain Business Standard Mumbai: Mahindra Finance, the non-banking finance arm of the Mahindra group, saw its net profit double in the second quarter. Recently, it also crossed the one million customer mark. In a conversation with Sudeep Jain, the companys managing director, Ramesh Iyer, talks about their core commercial vehicles finance operation and the new lines of business the group plans to enter. Excerpts: You planned to enter a host of new businesses such as asset management, loans against gold and equipment finance. How are those efforts shaping? As far as the AMC (asset management company) is concerned, our application is with Sebi (Securities and Exchange Board of India). So, that business may not start this financial year. For loans against gold, we have started a pilot project in western and southern India. This is a business which we will grow well, because we know that the segment of customers we work with do have gold. As far as construction equipment and commercial vehicles is concerned, we have started that activity on a selective basis, as it requires a different skill set. It is a high-value asset and the ability to understand the cash flow of the customer is very important. Dont you think the AMC space is already quite crowded? Our focus will be the semi-urban and rural market and we will design products that suit that market. You wont necessarily see us competing with the other AMCs in the urban market. Are there any other new lines you plan to enter? Not really. One of the things we are most passionate about is rural housing. Our rural housing subsidiary has been operational for a year now and that business turned profitable in the first half. That will be the story of the year and going forward, that business should see phenomenal growth. Our insurance broking business is also doing well. There we need to increase the penetration into Mahindra Finances existing customer base. It started off with a 10-15 per cent penetration and now is around 40 per cent. Before the end of this year, we want to take it to 60-70 per cent. How have things been on the liabilities side? A year before, our dependence on mutual funds was higher; now that has come down. Now, we have good lines of credit from various banks. So, in a way, banks have replaced mutual funds. The cost of borrowing over the past one year has come down by at least four to five percentage points. In the monetary policy review, the Reserve Bank of India has said the risk weight associated with loans by banks to NBFCs will depend on the latters credit rating. Will that impact your cost of funds? We have an AA- rating. It will not necessarily reduce our cost of funds. Probably, it will push up the cost of funds for NBFCs with poor ratings. Our marginal cost if I take a fresh loan for three years is 8.5-9 per cent. I dont see that coming down because of this rating. How is your core commercial vehicles finance business doing? It couldnt be better. In September, we financed 20,000 vehicles. In October, we did about 25,000. Overall, all manufacturers have done well. And all of them are looking at rural as a big opportunity, whether it is Maruti, Hyundai. Being present in rural India, we get the benefit. In addition, liquidity conditions have improved significantly. What is your current headcount and do you plan to hire more people? We currently have around 6,000 people. In the last two months, we have added 45,000-50,000 customers and the excitement is till there. The way we are growing, we should recruit 500-plus people very soon. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agencies See this story in: The Hindu Business Line Mumbai: Oil inched down towards $79 a barrel on Wednesday, after rising nearly 2 per cent a day ago, following an industry report showing a rise in fuel inventories in the United States though crude fell unexpectedly. US crude for December fell 26 cents to $79.35 a barrel by 0334 GMT, after settling up $1.47 on Tuesday. London Brent crude shed 28 cents to $77.83 a barrel. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reuters See this story in: Daily News & Analysis Paris: Automotive suppliers can look forward to a wave of consolidation as businesses hit hard by the crisis seek to restructure, boost economies of scale and gain access to new technologies, industry executives said at the Reuters Auto Summit. "Suppliers are the part of industry that is the most at risk, and the one where we will see the most concentration and consolidation in the next few months," said IHS Global Insight analyst Carlos da Silva, speaking at the summit, which is taking place from Nov 2-5 at Reuters'' offices in Paris and Detroit. French parts suppliers emphatically underlined the trend on Monday, when Faurecia agreed to buy U.S. clean emissions specialist EMCON Technologies and Valeo boosted its stake in its Chinese compressors joint venture to 100% from 60%. "I really expect that we'll see a significant volume in M&A again in 2010, both on a manufacturing side and even more so on the supplier side," Klaus Pflum, Nomura''s head of European automotive M&A had said at the summit on Monday. Valeo''s CEO Jacques Aschenbroich told the summit he would be on the look-out for opportunities, focusing on three main business areas -- comfort & safety, energy consumption and vision. The French automotive supplier is also reviewing all its Chinese joint ventures, with a view to increasing its participation in each, he said. Dura Automotive Systems Inc chief executive Tim Leuliette said the auto suppliers sector is severely distressed, with around 200 U.S. suppliers slowly selling assets to other rivals or private equity companies. French auto parts maker Plastic Omnium does not plan to be a consolidator itself, but chief executive Laurent Burelle told the summit he saw consolidation taking place next year. "I think 2010 is not going not to be an easy year at all and that consolidation will go on in 2010," he said. Reuters See this story in: The Economic Times Frankfurt/Berlin: German politicians seethed and unions tore up a deal to cut costs in protest at General Motors completely unacceptable decision not to sell Opel, its European unit, after months of painstaking talks. Labour leader Klaus Franz rescinded hundreds of millions of euros in cost concessions that workers agreed to on condition that Opel was bought by Magna, the Canadian group the Berlin government had long favoured as buyer. General Motors behaviour toward workers is completely unacceptable, German economy minister Rainer Bruederle told reporters the morning after GMs shock news. Germany viewed Magna and its Russian partner Sberbank as most likely to preserve as many German jobs and plants as possible. Half of Opels 50,000 staff are based in Germany. General Motors behaviour shows the ugly face of turbo-capitalism. That is completely unacceptable, said Juergen Ruettgers, premier of the state of North Rhine-Westphalia, home to Opels Bochum plant, which is seen at risk of closure. GM Europe will now revert to a reorganisation plan that envisions chopping fixed costs at Opel by 30%, a spokeswoman said. Failure to reach the needed restructuring would result in the operation becoming insolvent, an unnecessary and undesirable outcome for all involved, GM Europe said. She declined to say what that could mean in terms of job losses and plant closures, but German staff feared the worst. I dont know what is going to happen here in Bochum if Magna does not take it over, said one Opel worker arriving for an early shift at the plant. Another Opel worker accused GM of betraying its workers. This arises from the mentality of American capitalism. They used to make treaties with the Indians and then quickly break them, he told a German radio interviewer. In Spain, union spokesman Jose Juan Arceiz said workers would try to negotiate a deal with GM as they had with Magna. GM abandoned the Opel sale on Tuesday, saying improving business conditions and the strategic importance of Opel had prompted the move by its board of directors. The decision left open the question of how GM will finance its plan to restructure Opel, the backbone of its operations in Europe and a key source of global technology for mid-sized cars. The spokeswoman said GM would repay a e1.5 billion bridge loan due at the end of November if Berlin requested this. The loan helped save Opel from being sucked into its US parents brief dip into bankruptcy this year. GM Europe has said it was counting on European loan guarantees to provide the bulk of the financing it needs to overhaul Opel. Officials in Berlin, which had originally planned to provide e4.5 billion in upfront aid for the Russian-backed Magna bid, focused on getting back the bridge loan rather than providing fresh financing. GM decides to keep Opel, U-turn sparks German backlash The Financial Express GM scraps Opel sale The Hindu Business Line GM confirms to keep Opel, scraps Magna deal GM scraps Opel sale; to embark on European business restructuring http://www.dailypioneer.com/213476/GM-scraps-Opel-sale;-to-embark-on-European-business-restructuring.html GM now says wont sell Opel Deccan Herald GM decides not to sell its global brand Opel The Times of India GM drops plans to sell off Opel Rediff India GM throws Opel deal into reverse Mint GM scraps plan to sell Opel, angers Germany Hindustan Times Agencies See this story in: The Economic Times Berlin: General Motors plans to cut around 10,000 jobs at its European division Opel, GM vice president John Smith said Wednesday after the US auto giant announced that it would retain control of the unit. GM wants to slash costs by 30 percent at Opel, a European unit that employs 55,000 people, Smith told European journalists during a telephone news conference. General Motors on Tuesday stunned the European auto sector with a decision to scrap plans to sell Opel to Canadian auto parts manufacturer Magna International and Russian bank Sberbank, saying it would implement its own restructuring at Opel. The decision sparked outrage in Germany, where half of Opel's workforce is employed and where the government had backed the Magna-Sperbank deal. Opel also has production plants in Spain, Belgium, Poland and Britain, where it operates under the Vauxhall brand. Smith acknowledged that "the German government had a very strong appetite for the Magna proposal, so I can well imagine and well understand" the German reaction. "I am hopeful they will find merit in our plan." Germany had accorded General Motors a loan of 1.5 billion euros (2.2 billion dollars) to keep Opel in business, for which the government is now seeking a reimbursement. "We can and will pay back the bridge loan," Smith said, adding that after a partial repayment, the company now owes Germany 900 million euros. Smith contended that there had been very little difference between the offers put forward by Magna and a rival bidder, the Belgian investment firm RHJI, and what GM has in mind for Opel. "There is very little daylight between what RHJI proposed, what Magna proposed and what GM will propose," Smith said. But he added: "We continue to believe that we can restructure Opel with less money than any other investor." General Motors says it plans to cut 10,000 jobs at Opel The Times of India Bloomberg See this story in: Business Standard Berlin: General Motors Cos board voted to keep its Opel unit rather than sell a majority stake to Magna International Inc and partner OAO Sberbank, citing an improving economy and the brands strategic importance. The decision sets aside an agreement to sell 55 per cent of Ruesselsheim, Germany-based Adam Opel GmbH to Magna, Canadas largest car-parts maker, and Sberbank, Russias biggest lender. GM expects about 3 billion euros ($4.42 billion) in expenses to restructure the money-losing unit and its UK twin Vauxhall. Retaining ownership of Opel marks the second shift in GMs post-bankruptcy plan for unloading unprofitable divisions. Detroit-based GM said on September 30 it would wind down the Saturn brand after a sales agreement with retailer Penske Automotive Group Inc fell through. Its the worst decision for GM, Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen said. Without the support of workers and Magnas assistance in expanding in Russia, Opel will have fewer chances to survive, he said. GM was given an opportunity to reconsider the Magna deal after the European Union expressed concerns that Germany had improperly influenced the choice of buyer. Germany told GM that financing wasnt reserved only for Magna, prompting the review by the carmakers board. German Chancellor Angela Merkel had lobbied for the sale to Aurora, Ontario-based Magna since May, aiming to preserve jobs. GM notified Magna, Merkel and other European government officials before Tuesdays announcement, said a person familiar with the discussions. I have serious concerns about the future of the company and its jobs, Roland Koch, prime minister of Hesse, Opels home state, said in a statement, adding that he was angry about the decision. Merkel was in Washington to give a speech to Congress and meet President Barack Obama at the White House, and her plane left for Berlin around the time of GMs announcement. The German government, in an e-mailed statement, called on GM to repay 1.5 billion euros that had been provided for Opel. The request to repay the loan by the end of November is according to the conditions of the loan, the government said. Klaus Franz, Opels top labor leader, said workers wouldnt contribute to a GM-led restructuring and demanded the disbursement of deferred wages such as vacation pay. We will not actively engage in crafting a route back to General Motors, rather we will focus on our classic role of protecting the workforce. Franz said in a statement. GMs continued control of Opel is a gain in terms of lowering risk on technology and platforms, said Michael Robinet, an analyst for consultant CSM Worldwide in Northville, Michigan. But they lose in terms of exposure to a European market that next year could be somewhat weaker. Germans angry over GM decision to keep Opel The Indian Express http://www.indianexpress.com/news/Germans-angry-over-GM-decision-to-keep-Opel/537438 Reuters See this story in: The Economic Times Detroit: Chrysler sales plunged 30% in October, the day before Fiat CEO Sergio Marchionne released a five-year turnaround plan for Chrysler. US auto sales hit an annualised rate of 10.46 million units in October. That is a level not seen in a year, except for July and August when the US govts cash for clunkers incentives programme sparked a surge in sales. Reuters See this story in: The Economic Times Frankfurt: Daimler plans to cut 1,000 jobs at its Mercedes-Benz Cars premium division by offering a variety of buyout packages to staff, the German car maker said on Wednesday. Management and labour representatives have agreed to offer staff up to 50 years old the chance at voluntary redundancies, a company spokesman said. The Mercedes-Benz car arm now employs around 45,000 staff in Germany. Two people familiar with the plan had told Reuters earlier that Daimler was planning buyouts to cut its headcount. Daimler has pledged in agreements with organised labour to refrain from compulsory redundancies through 2011. Chief Executive Dieter Zetsche has said the group's headcount would have to be significantly reduced next year. Reuters See this story in: The Economic Times Yokohama: Nissan Motor revised its annual outlook to a profit from a loss on Wednesday as soaring sales in China helped drive quarterly earning beyond the markets expectations. Nissan had been expected to lift its forecasts after it cranked up its sales target in the Chinese market by nearly a fifth in September as Beijings tax incentives for smaller cars boosted demand. See this story in: The Indian Express Yokohama (Japan): Nissan Motor Co, Japans third-biggest automaker, revised its annual outlook to a profit from a loss on Wednesday as soaring sales in China helped drive quarterly earnings beyond the markets expectations. Nissan had been expected to lift its forecasts after it cranked up its sales target in the fast-growing Chinese market by nearly a fifth in September as Beijings tax incentives for smaller cars boosted demand for models such as the Tiida and the Sylphy. Most other Japanese rivals have also lifted their annual forecasts as stimulus measures by governments around the world have provided at least a temporary boost to demand. Nissan said it now expects to sell 3.3 million vehicles globally in the year to March, raising its forecast by 7 percent. Its a strong showing, demonstrating both Nissans ability to manage through the economic crisis as well as the returns from its investments in emerging markets, particularly China, said Marc Desmidt, chief operating officer of Asian equities at BlackRock. Having said that, an important factor to watch out for is the sustainability of consumer demand as government stimulus around the world begins to come to an end. Nissan, owned 44 percent by Renault SA, now expects an operating profit of 120 billion yen ($1.3 billion) in the year to March, instead of the 100 billion yen loss it had forecast previously. Earnings made in China are counted in Nissans operating profits, unlike those at Toyota Motor Corp and Honda Motor Co, which report under U.S. accounting rules. The new operating forecast exceeds an average forecast for an operating profit of 60 billion yen in a poll of 20 analysts by Thomson Reuters I/B/E/S. Nissan also revised its net loss forecast to 40 billion yen from a loss of 170 billion yen. For the July-September quarter, Nissan made an operating profit of 83.28 billion yen ($922 million), down 25.4 percent from a profit of 111.7 billion yen a year earlier and beating an average estimate of 31.8 billion yen from four analysts. It made a net profit of 25.53 billion yen, down 65 percent. Cost Cutting Nissan executives have said efforts to shave costs and return to positive free cash flow were slightly ahead of plans, while higher-than-anticipated sales in China were helping to offset some of the sharp falls in the United States and the Middle East. Nissan has also been shifting production of some of its cars from Japan to escape a rising yen. Chief Executive Carlos Ghosn said last month Nissan was considering going further by transferring production of some Middle East-bound vehicles to the United States from Japan. Nissan changed its foreign exchange assumptions for the year to March 2010. It now expects the dollar to average 90 yen and the euro to average 131.6 yen, against its projections in May for 95 yen and 125 yen. We continue to operate in an environment that is volatile and uncertain, Ghosn said in a statement. Our outlook will remain cautious until we see evidence that economic recovery can be sustained in world markets. Further out, Nissan and partner Renault are staking much of their resources on the still-unproven electric vehicle segment with a planned global rollout in 2012, hoping to take the lead in the zero-emissions field. Next year, Nissan is looking to boost its global presence with a high-volume entry-level car that will first be produced in Thailand from March 2010. Nissan Chief Operating Officer Toshiyuki Shiga said the so-called global compact car will be rolled out in three versions -- a hatchback, sedan and compact multi-purpose vehicle -- with planned production in India and China by mid-2010. Nissan aims to sell 1 million units of the model annually. Shares of Nissan gained 3.6 percent during the second quarter, outperforming Tokyos transport sector subindex, which was flat. Nissan ended up 1.7 percent at 661 yen on Wednesday before the results were announced, against the transport sectors 0.9 percent rise. Reuters See this story in: The Economic Times Toyota withdrew from Formula One with immediate effect on Wednesday, leaving Japan without a team in motorsports premier series. Company President Akio Toyoda apologised for the teams failure to record a single race victory since joining F1 in 2002 despite an estimated annual budget of around $300 million. Honda and BMW have already exited F1 to cope with the credit crunch. It was a very difficult but unavoidable decision, Toyoda told a news conference in Tokyo. Since last year, as the economic climate worsened, we have been struggling with the question of whether to continue in F1. We are pulling out of Formula One completely. I offer my deepest apologies to Toyotas many fans for not being able to achieve the results we had targeted. The decision by the worlds largest carmaker to quit the glamour sport comes as the auto industry starts to stabilise following a sales crunch in the wake of the financial crisis. Cologne-based Toyotas departure as a team and engine supplier deals another major blow to the sport after Japans number two carmaker Honda quit the series last December. It leaves Japan without a team in F1 and continues the drain of Japanese companies from motorsport, which has seen Subaru and Suzuki withdraw from the world rallying championship. Bike maker Kawasaki also scrapped its MotoGP team in the grip of a severe market downturn. Japanese tyremaker Bridgestone announced on Monday they would not renew their supply contract with Formula One after the 2010 season. In July, Toyotas Fuji International Speedway circuit surrendered hosting rights for the Japanese Grand Prix in 2010 and beyond to reduce costs amid the global economic crisis. Since becoming president in June, I have attempted to concentrate on delivering Toyotas product to customers, said Toyoda. That is where we have to focus our resources now. We stressed our commitment to F1 last year and we have done our best over the past season, but it was no longer viable to continue. Toyota, whose team principal Tadashi Yamashina was in tears at Wednesdays news conference, compiled 13 podium and 87 points finishes over its eight seasons in F1. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY The Hindu Business Line Mumbai: The rupee gained by 35 paise against the dollar on Wednesday buoyed by the rally in the domestic equity markets and the dollars weakness against other Asian currencies. The domestic currency opened at 47.17 and strengthened to touch an intra-day high of 46.98. It ended the day at 47.05, against the previous close of 47.40/41. The rupee opened with a positive gap tracking the positive Asian equity indices. The huge gain registered by the Sensex also propped up the ru pee, said a dealer with a private bank. Dollar selling by exporters also helped the rupee. In the global markets, investors are adopting a cautious approach ahead of the US Federal Reserves meeting on interest rates. In the forward premia market, the one-year premium ended at 2.80 per cent (2.78 per cent). The Hindu Business Line Mumbai: Indian Benchmarks on Wednesday recouped all the losses made in yesterdays session aided by strong global market and hectic covering of short positions. The BSE benchmark Sensex rose by 507 points riggered by buying by funds and retail investors after Finance Minister Pranab Mukherjee ruled out withdrawal of stimulus packages. The Sensex was quoted at 15,912.13 points, up by 507.19 points, or 3.40 per cent, with realty, IT, energy, Teck, metal and banking indices gaining between 3 and 10 per cent. The BSE Realty climbed nearly 10.80 per cent at 3,827.81, metal index surged 5.5 0 per cent at 13,830.40 and IT index was up 4.25 per cent at 4,455.36. The BSE barometer Sensex had lost over 1,405 points, or 8.5 per cent, in the previous six sessions to hit two-month lows. The wide-based National Stock Exchange index Nifty too moved up by 146.90 points, or 3.35 per cent, to 4,710.80 points. Brokers said sentiments turned better after Mr Mukherjee ruled out withdrawal of stimulus packages till the economic recovery is on a strong footing. Besides, firming trends on other Asian bourses also buoyed the trading sentiments here, they said. New Delhi: The inflation, led by high food prices, is an area of concern, but it should moderate by the end of this year, said Deputy Chairman of Planning Commission Montek Singh Ahluwalia. According to latest data, wholesale price index rose 1.51 per cent in the 12 months to October 17, but food price index was up 12.85 per cent. However, agriculture continues to be a grim picture for an agrarian country. Indias farm sector growth will be less than 4 per cent this fiscal on account of floods and deficient monsoon in some parts of the country, Ahluwalia said. It is extremely unlikely that the farm sector will grow more than 4 per cent this year. The sector is not growing as it should have been, he said at the Economic Editors' Conference here. However, this would not pose a problem to food supplies in the country, he added. We dont need more than 2 per cent growth of agriculture production, Ahluwalia said, adding that the country would not face any food shortage if the sector expanded by this amount. Increase in procurement prices and supportive government policies would help the farming sector to perform better in the 11th Plan period that ends 2012, he said. Indias agricultural sector grew 1.6 per cent last fiscal, down from 4.9 per cent in 2007-08. The Planning Commission has projected that Indias economic growth in the ongoing fiscal could fall to 5.5 per cent in the worst-case scenario of a sharp decline in agriculture sector performance. This is much lower than the 6.3 per cent growth in the national income estimated by the Plan panel on the worst case assumption that agriculture growth will fall by 2.5 per cent. According to a note on the economys performance prepared by the Planning Commission, if the extent of crop losses is more than projected on the basis of available trends, the fall in farm production could be as steep as 6 per cent, which would in turn pull down GDP growth. In the worst-case scenario, foodgrain production could fall by 29 million tonnes to 205 million tonnes, posting a decline of 12 per cent and pulling down agricultural sector GDP by up to 6 per cent. This would in turn lower overall GDP growth to 5.5%, the note added. Both industrial and services sectors could see a significant recovery in the current fiscal, especially in the second half of the year. While industry is estimated to grow at 7.8 per cent, services sector could notch 8.2 per cent growth. Last Financial closing
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Sunday, December 13, 2009
Indian Auto Industry Update November 05, 2009
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