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I would prefer that Indian companies have an increasing share of the Indian automobile market.

The foreign players can be there to provide the competition but let the Indian companies like Tata, Mahindra and Bajaj drive the market.
 
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Yamaha to make India an export hub

The firm plans to raise its production to one million motorcyclesby 2013 and export to Africa, South America

Japan’s Yamaha Motor Co. Ltd plans to expand capacity and export motorcycles made in India to Africa and South America in a bid to turn its local business profitable after more than 25 years.

“We are in a very severe condition,” Hiroyuki Suzuki, the new managing director and chief executive of India Yamaha Motor Pvt. Ltd, said in an interview on Friday. “But we aim to break even by 2013 as we are increasing our production capacity.”

The company manufactures 600,000 motorcycles a year at its Greater Noida plant. “We plan to raise the capacity of this plant to one million and, by 2013, in the domestic market we aim to sell 800,000 units and 200,000 to be exported,” Suzuki said.

Yamaha entered India in 1985, partnering tractor maker Escorts Ltd. In 15 years, it sold 2.5 million bikes in the country, cornering 7.2% of market share. In 2000, trying to compete with more fuel-efficient bikes, Yamaha started making low-end models. Its market share fell to 3.6% by 2005-06, and to 2.35% by 2010-11. In the 11 months to February, however, sales rose 22.55% to 251,762 units on the back of India’s economic growth. The company has sold more than five million motorcycles in India to date, a spokesperson said.

“The problem with Yamaha... has been of establishing a single brand in the Indian market like (Bajaj Auto Ltd’s) Pulsar, (Hero Honda Motors Ltd’s) Splendor or Passion,” said Jatin Chawla, sector analyst, India Infoline Ltd, a Mumbai-based brokerage. “Also, they went into the entry-level segment, where you have volumes but no margins. So, Yamaha could neither gain volumes nor margin.”

Suzuki said he plans to sort these issues over the next two years. Yamaha, he said, is doing a feasibility study to make India an export base for Africa and South America.

“The African markets need basic models such as Crux and FZ and we will export YBR to South America. In Africa, you see three types of motorcycles—mopeds, scooters and street models of motorcycles. These motorcycles are also used for commercial purposes. I mean a rider can have two pillion sitting behind him and he can charge fare from them. So, we will have to change specifications of the bikes, which we plan to export,” he said. Suzuki said the company will also strengthen its research and development division in India with the help of Yamaha Japan to support its export plans.

Up to one million bikes are sold in Africa annually, according to Sugan Palanee, senior partner, auto practice, Ernst and Young Africa. Bajaj Auto, the only Indian motorcycle manufacturer that exports to Africa, has around 25% market share in the entry-level segment; Chinese manufacturers have the rest.

Suzuki said Yamaha plans to diversify in India too. “We may need at least two years before we come up with a scooter in the 150cc segment,” he said. “Going forward, we will bring in motorcycles in the range of 200-250cc.”

Yamaha to make India an export hub - Home - livemint.com
 
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Govt clears FDI proposals worth Rs 1,290 cr

The Government approved 14 proposals of foreign direct investment (FDI),including that of Mauritius based Ghir Investments, totalling Rs 1,289.85 crore.
The Foreign Investment Promotion Board (FIPB), however, deferred decisions on 27 proposals, including that of Essar Capital Holdings and Forbo Holding AG, Lindenstrasse, Switzerland.

"Based on the recommendations of FIPB...Government has approved 14 Proposals of FDI amounting to Rs 1289.855 crore," an official statement said.

The FIPB , which falls under the Finance Ministry, gave its nod to Kolkata based Dhunseri Investments FDI proposals worth Rs 715 crore. The company had proposed to issue and allot equity shares to the non-resident shareholders consequent upon demerger.

Ghir Investments got the approval of the Board for induction of foreign equity in an investing company. The Mauritius based company proposes to bring in FDI worth Rs 530 crore.

The other proposals which were cleared include that of Pipavav Shipyard, Gujarat, to undertake additional activity relating to defence sector.

Kyuden International Corporation, Japan also got clearance to set up a joint venture investment company to undertake downstream investments in the business of developing and establishing renewable power projects.

Meanwhile, the next meeting of the FIPB is scheduled to be held on April 20.

As per the statement, the Government deferred decision on the proposal of Verizon Communications India to transfer equity shares to a non-resident group in telecom sector.

Decision on request of Forbo Holding AG, Lindenstrasse, Switzerland, to set up a new wholly owned subsidary to undertake the business of manufacturing, sale, distribution, lease, import and export of power transmission belts, sophisticated conveyor and processing belts was also deferred.

Similarly, the Board put off decision on the proposal of Essar Capital Holdings (India), Mumbai, for acquiring equity shares by way of subscription to new equity shares and/or purchase of existing equity shares in an investing company engaged in the telecom sector.

The FIPB also rejected five proposals including those of Henry Lamotte India and Mecords India Limited, Mumbai.

During April-January 2010-11, India received FDI worth Rs 77,902 crore (USD 17.08 billion), down 29 per cent from Rs 1,09,668 in the same period last year.

Govt clears FDI proposals worth Rs 1,290 cr
 
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India's forex reserves up $1.67bn to $303.51bn
Published on Fri, Mar 25, 2011 at 20:27 | Updated at Fri, Mar 25, 2011 at 20:44 | Source : PTI


India's foreign exchange reserves surged by USD 1.67 billion to USD 303.51 billion, helped by a healthy increase in foreign currency assets (FCAs) in the week ended March 17.
The reserves had declined by USD 755 million to USD 301.84 billion the week before. FCAs, the biggest component of the foreign reserves, went up by USD 1.47 billion to USD 273.72 billion for the week ended March 17, the Reserve Bank said in its weekly data released this evening.
FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of the non-US currencies such as the euro, pound and yen, held in the reserves, it said.
India's gold reserves were unchanged at USD 22.14 billion at the end of the reporting week, the central bank said. Both the Special Drawing Rights (SDRs) and reserve position in the International Monetary Fund (IMF) witnessed an increase during the week, the RBI said.
SDRs were at USD 5.229 billion, up USD 60 million from the week before, while there was a USD 140 million increase in India's reserve position in the IMF which stood at USD 2.407 billion as of March 17, the RBI data said.

---------- Post added at 09:10 AM ---------- Previous post was at 09:10 AM ----------

India's forex reserves up $1.67bn to $303.51bn - PTI -
 
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Russia’s Bashneft is considering the possibility of the entry of India’s Oil and Natural Gas Corp into its joint-stock capital with a share of 20-25%, according to Alexander Goncharuk, chairman of the Russian oil concern’s board of directors.

“We are in talks with ONGC. They are in the active phase. We are discussing the entry of this company into Bashneft’s business. And this is not connected solely with
Trebs-Titov,” said Goncharuk.

Asked if Bashneft was worried by the fact that its potential foreign partner could acquire a blocking stake in its joint-stock capital, Goncharuk noted: “Naturally the other side in such talks will aim for a blocking stake. That does not worry us.”

“We are considering the entry of ONGC as one of the variants for the development of Bashneft, as a means of attracting additional funds. If ONGC enters the capital of our company, then it will be present in all our projects,” added Goncharuk.

TASS_neft.jpg


India's ONGC may get 20-25% in Russia's Bashneft | Russia & India Report
 
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Moscow to help build the Chennai metro

As part of their plans to deal with the transport crisis, the Chennai authorities had previously decided to build an urban metro as the most important element in the renewed system, which will integrate suburban rail transport and other surface transport.

It is planned to build about 18 kilometres of underground tunnels and 19 stations.

The construction process was divided into five lots, each of which was the subject of a separate competition. Gammon and Mosmetrostroy won two of the five competitions. The companies will construct seven underground stations and 6.4 kilometres of tunnel.

Moscow to help build the Chennai metro | Russia & India Report
 
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Power panacea for North India

Hydropower cooperation is set to scale new heights with a new power plant that can satisfy energy needs of India's northern region.

enrg_468.jpg


“India captures your soul,” exclaimed Alexander Fink, director for international cooperation of the Russian Research Institute, Hydroproject. Late last year, Hydroproject signed a pact with KSK Energy Ventures Limited K.A., under which Russian engineers will develop a technical design for the Upper Subansiri hydro power plant on the Subansiri river in India.


The new power plant will boast a 230-metre high concrete dam. With 2,000 MW capacity, it could supply power to India’s entire northeast and satiate the demand for cheap energy in West Bengal and other industrial areas in Northern India.

Power panacea for North India | Russia & India Report
 
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Indian-run retail giant LuLu enters Saudi market

Lulu hypermarket sets new standards - Arab News

RIYADH: Retail giant Lulu further consolidated its dominance in the region by opening a SR220 million new hypermarket in Murabba district here on Sunday.

Prince Saud bin Abdullah, son of Custodian of the Two Holy Mosques King Abdullah, opened the new hypermarket.

The district is a busy and bustling area predominantly inhabited by hundreds of thousands of Asian and Arab expatriates.

Speaking after a tour of the hypermarket with Lulu Managing Director M. A. Yusuffali, Prince Saud said: “The opening of this hypermarket is a manifestation of the cordial relationship that exists between the Kingdom and India over the years. Lulu’s confidence in the local economy has emboldened it plan to invest in new hypermarkets across Riyadh, Jeddah and the Eastern Province.”

At a press conference later, Yusuffali thanked the Kingdom for the support and encouragement provided to Lulu.

The Kingdom has ensured peace and security, which are top priorities for the business community. “There is good governance and security in this great country,” said the Indian billionaire, allaying fears of the business gentry.

He also said he would go ahead with his publicized SR2 billion investment plan in Saudi Arabia.

“Within three years from now, Lulu will hire some 4,000 Saudi nationals. About 350 of them are currently working in this new hypermarket,” he said.

Deputy Commerce & Industry Minister Ahmad Al-Oufi, Riyadh Chamber of Commerce and Industry Chairman Abdulrahman Al-Jeraisy, Indian Ambassador Talmiz Ahmad, Bank of Baroda Chairman M.D. Mallya, Bank Albilad Chairman Nasser Ibrahim Al-Subeai, and Emke Group CEO Saifee T. Rupawala were among the large number of dignitaries present at the event.

Yusuffali said he plans to open his next store in Batha area here within the next three months. Plans are under way to open several other Lulu hypermarkets and department stores in Makkah, Madinah, Jeddah and other cities.

“The roll-out of new stores is an integral element of our ‘Achieve 100’ game plan,” he said.

“Six new stores will raise our tally to 93, and a further seven will come on board before the year-end,” he said, adding that this new hypermarket in Riyadh is its 89th branch.

“Commodities will be cheaper in the Kingdom’s Lulu stores,” he emphasized. The new hypermarket, with a total of 40 check-out counters, is located at Riyadh Avenue Mall, which has a separate Malabar Gold section.

The new hypermarket features more than 100,000 products, including grocery items.

One of its major strengths is its fresh food section with fruit, vegetables, dairy products, meat, fish, and hot and cold ready-to-eat food.

It also has a huge area dedicated to department store items such as electronics, IT products, home appliances, sports, stationery, furnishings and furniture and fashion brands.

Lulu, which accounts for nearly a third of the Gulf’s retail market with footfall exceeding 425,000 every day, employs 26,000 people.

In keeping with its endeavor to provide the best quality products in the most hygienic way, it has invested heavily in special areas like state-of-the-art storing facilities, and latest baking and cooking machines.
 
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India February Exports Rise 49.7%

NEW DELHI -- India's merchandise exports rose 49.7% to $23.5 billion in February from a year earlier, according to provisional data issued Friday by the Ministry of Commerce.

The government didn't give any reasons for the growth in exports.

Imports rose 21.2% to $31.7 billion, largely due to a rise in non-oil imports, which were up 31% from a year earlier to $23.4 billion.

Oil imports in February fell 0.3% to $8.21 billion.

India's February trade deficit narrowed to $8.1 billion from $10.4 billion a year earlier, the data showed.

Oil imports during April to February, the first 11 months of the just-ended fiscal year, rose 12.4% to $88.1 billion, while non-oil imports rose 20.4% to $217.1 billion.
 
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India’s exports grew by an impressive 50 per cent in February, crossing the $200 billion mark during the first eleven months of 2010-11 on the back of rising demand from the U.S. and other markets.

Exports went up by 49.7 per cent year-on-year during February to $ 23.5 billion, taking the April-February 2010-11 figure to $ 208.2 billion, an increase of 31.4 per cent over the year-ago period and past the yearly target of $ 200 billion.

Imports also increased by 21.2 per cent in the month under review to $ 31.7 billion, leaving a trade deficit of $ 8.1 billion, according to the Commerce Ministry data released on Friday.

During April-February 2010-11, imports grew by 18 per cent to $ 305.3 billion over the same period last year. The trade gap for the period stood at $ 97 billion.

The exporting sectors which performed well during the 11 months of fiscal include engineering (81 per cent), petroleum and oil lubricants (34 per cent), cotton yarn and made-ups (43 per cent), chemicals (22 per cent) and electronics (40 per cent).

“The growth which we are seeing is basically from the markets of Asia, Latin America and Africa. In these new markets demand for our products are increasing,” Ramu Deora, the President of India’s apex exporters body FIEO, said.

However, Mr. Deora said that demand is still weak in several European markets.

The U.S. and Europe were the traditional markets for Indian exporters, but after the global economic crisis, exporters increased their engagement in new markets of Asia, Latin America and Africa.

The government is providing duty incentives to exporters for these new markets.

Commerce Secretary Rahul Khullar had said that going by this trend, the country’s exports are expected to touch the figures of $ 230-235 billion. Imports may end up to $ 350 billion and balance of trade to $ 105-115 billion by the end of 2010-11.

Oil imports in February dipped by 0.3 per cent to $ 8.21 billion from $ 8.24 billion in February 2010. However, non-oil imports grew by 31 per cent to $ 23.48 billion from $ 17.9 billion.


The Hindu : Business / Economy : Exports cross $200 billion mark in February
 
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India Exceeds the UK in Manufacturing Growth | TopNews United States


There can be some future concern for the manufacturing sector of the UK. Amid the fear of political turmoil in Arab nations, the manufacturing purchasing index dropped to 57.1 from a reading of 61 in February.

Many analysts attribute this slowdown in the manufacturing activity to the uncertainty looming over the Japanese economy and the potential threats of the UN sanctions in Libya and many other neighboring countries.

Responding to the slow pace of the manufacturing sector, Rob Dobson, an Economist at Markit, the polling company that produces the report, claimed, “The big question is therefore whether the drop in order-book growth represents a gathering in momentum of a more worrying slowdown which, alongside rising inflationary pressures, raises the risk of stagflation”.

Contrary to the UK, India and China showed a consolidated performance on the Purchasing Managers’ Index (PMI). Further, the report confirmed about the rising consumer demand amidst rising inflation and other global factors.

Moreover, the exports reached at $23.6 billion in February, an increase of 49.7% and Imports gained to notch up at $31.7 billion, an increase of 21.2 %. With consumer demand at a rise, many analysts believe that economic growth is not a major confirm for India in a long run.

Though the manufacturing sector got a jolt during the downturn, this was the only economic sector which outplayed the economic distress to recover fully.
 
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India’s gold demand to grow to 1,200 tonnes by 2020: World Gold Council

Mumbai, March 31:

Gold demand in India will continue to grow and is likely to reach 1,200 tonnes or approximately Rs 2.5 trillion by 2020, at current price levels, according to a research by World Gold Council (WGC).

“The rise of India as an economic power will continue to have gold at its heart. India already occupies a unique position in the world gold market, and as private wealth in India surges over the next ten years, so will Indian demand for gold,” WGC Managing Director, India and the Middle East, Mr Ajay Mitra said in a statement here.

Indian gold demand has grown 25 per cent despite 400 per cent price rise of the rupee in the last decade, it said adding that this research reaffirms the country as a key driver of global gold demand and expects increase by over 30 per cent in real terms, it said.

‘India: Heart of Gold’ is the second in a series of WGC research with focus on India, which includes forecasts from the Centre for Monitoring the Indian Economy (CMIE).

Mr Mitra said: “Furthermore, gold will remain auspicious given its connection with tradition, whether religious or attitudinal, will remain powerful.”

He pointed out that Indians tend to be risk averse and place great faith in the wealth preservation qualities of gold, which inspires confidence, stability and security.

“Therefore, the view that Indian demand for gold will be driven by the concept of enduring value, not price,” he said.

Business Line : Industry & Economy / Economy : India’s gold demand to grow to 1,200 tonnes by 2020: WGC
 
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Indian companies provided 60,000 to Americans

NEW DELHI: Indian companies helped save thousands of jobs in the US through acquisitions of local firms in the world's largest economy during the past five years, a survey by industry body CII said.

"Since 2005, nearly two-thirds of Indian companies have added jobs to their US operations and more than 80% workers at these companies are hired locally," the study said.

The findings of the survey conducted among 35 Indian companies having operations in the US and employing more than 60,000 people in the country - majority of them being American citizens - was released in Washington .

These companies representing sectors such as pharmaceuticals, telecommunications, healthcare, energy, iron & steel and information technology , helped save over 2,500 jobs from being eliminated due to their acquisition of US firms.

"Indian businesses have invested widely in the US economy in diverse sectors in the fields of services and manufacturing," Indian Ambassador to the US Meera Shankar said.

Indian companies saved thousands of jobs in US: CII - The Economic Times
 
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Hero Honda sales up 24% in March

Press Trust of India / New Delhi April 01, 2011, 20:06 IST

The country's largest two-wheeler maker Hero Honda today reported its highest ever sales for a month in March at 5,15,852 units, registering a jump of 24.41%.

The company had sold 4,14,638 units during the same month of last year, Hero Honda Motors (HHML) said in a statement.
For the entire 2010-11 fiscal, HHML crossed 50-lakh sales mark by dispatching a cumulative sales of 54,02,444 units as against 46,00,130 units in the previous fiscal, up 17.44%, it added.

"We are delighted with this year's sales performance, far surpassing our initial guidance of 5 million. Our growth rate is reflective of our strategic and marketing prowess, which has ensured our sustained market leadership," Hero Honda Motors Managing Director and CEO Pawan Munjal said.

In December last year, the Indian promoter of the two-wheeler maker, the BM Munjal family, had agreed to buyout the entire 26% stake of the Japanese promoter Honda in Hero Honda for Rs 3,841.83 crore.

"Hero Honda initiated strategic and structural changes this fiscal, which will begin to take effect in the near future. We are confident that our initiatives will allow us to build on our leadership position. We will actively look at exploring opportunities in newer markets, establishing a new brand identity and further enhancing our in-house resources," Munjal said.

During the last fiscal, the company had launched seven new models, including variants and refreshes, across various segments.

Hero Honda sales up 24% in March
 
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TVS Motor’s total sales up 33 p.c. in 2010-11

01VBG_TVS_518155e.jpg


H. S. Goindi, President Marketing TVS Motors during the launch of India's first Motorcycle with ABS Apache "RTR 180 ABS" (Anti-lock Braking System technology), in New Delhi on March 11, 2011. Photo: Shanker Chakravarty


Chennai-based TVS Motor Company today reported a 28.16 per cent jump in sales for March to 1,91,208 units from 1,49,194 units in the corresponding month of 2010.

For the entire 2010-11 fiscal, the company’s sales jumped by 33.17 per cent to 20,46,668 units from 15,36,919 units in the previous fiscal, TVS Motor Company said in a statement.

During March, 2011, TVS Motor’s two-wheeler sales witnessed a 27.27 per cent increase at 1,86,781 units from 1,46,763 units in the same month last year, it added.

Motorcycle sales of the company rose by 24.16 per cent last month to 79,642 units from 64,147 units in the year-ago period, it said.

The domestic two-wheeler maker’s sales in March, 2011, stood at 1,62,719 units, up 28.43 per cent over 1,26,696 units in the same month of 2010.

The company said its exports of two-wheelers during the month rose by 31.06 per cent to 26,979 units, as against 20,585 units in March, 2010.

Total three-wheeler sales also soared by 82.11 per cent to 4,427 units in last month from 2,431 units in the same month of 2010, the statement said.

During the 2010-11 fiscal, TVS Motor Company’s total two-wheeler sales rose by 31.86 per cent to 20,06,808 units from 15,21,939 units in the previous fiscal.

The Hindu : Business / Companies : TVS Motor’s total sales up 33 p.c. in 2010-11
 
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