Gujarat emerging as global automobile manufacturing hub: Narendra Modi

AHMEDABAD: Gujarat Chief Minister Narendra Modi on Thursday said that the state was emerging as a global automobile manufacturing hub with companies like Ford, PSA Peugeot and Tata Motors opening up their facilities here.

"We wanted to encourage our engineering sector as a result of which a lot of automotive companies have come to the state. Gujarat is moving towards becoming a global automotive manufacturing hub and shall become backbone of Indian automotive sector," Modi said, while speaking at the MoU signing ceremony between Gujarat government and PSA Peugeot Citron.

"I am really happy to see the signing of agreement with Peugeot on this auspicious day of Ganesh Chaturthi today. In July, a similar agreement was signed with Ford," he said. "With this the first locally produced Peugeot car will be available in India by 2014," Modi said.

With this integrated manufacturing facility being set up at an investment of Rs 4,000 crore, Sanand will also figure as one of the largest automotive parts manufacturing hub globally, he said adding the state has become a leading investment destination too, Modi said.

The state government will also set up an international level Automotive Skill Development Institute on PPP mode with PSA Peugeot, to generate skilled manpower for the automotive sector, Modi said.

Finnair to expand its network to more Indian cities

NEW DELHI: Terming India as a "priority destination", Nordic carrier Finnair on Thursday said that in addition to Delhi, it would soon link more cities directly with Finland.

Important cities like Mumbai, Bangalore, Chennai and Hyderabad are under consideration for starting Finnair services, Kari Stolbow, Director, Indian Sub-continent, Finnair, told reporters here.

He said, meanwhile, Finnair Cargo will launch services between Mumbai and Helsinki in co-operation with Nordic Global Airlines from September 16 this year.

Terming Delhi-Helsinki route as profitable, he said the airline's commercial income increased by around 25 per cent in the first six months of this year compared to corresponding period last year.

Finnair had launched direct flight between Delhi and Helsinki on October 30, 2007.

It is running a flight on the route six days a week except for Tuesday, Stolbow said.

The flights between Mumbai and Helsinki were suspended in March 2009 due to fall in traffic, he said.

The major share of Finnair passengers from India are from business sector.

"Corporate passengers constitute 75 per cent while leisure travellers form 25 per cent of our traffic from India," he said.

Stolbow added the airline would work closely with leading corporate houses like Wipro, Tata Consultancy and Nokia which have establishments in Finland to increase number of corporate flyers.

He further said Finnair has forged tie-up with Kingfisher airlines to mobilise more passengers to Finland from different cities within India.

Bangalore Metro to chug from mid-September

BANGALORE: The long-delayed Metro rail service in this tech hub is set to roll out after Prime Minister Manmohan Singh dedicates the first phase of the multi-crore project to the nation mid-September, a top official said here Tuesday.

"The first phase (Reach-1) of the 'Namma Metro' service will commence after the prime minister flags off the inaugural trip in the second week of next month. The tentative launch dates are Sep 15 or Sep 17 depending on his (PM) convenience," state-run Bangalore Metro Rail Corporation Ltd (BMRCL) managing director N. Sivasailam told reporters here.

The Reach-1 of the Rs.11,609-crore (revised cost) mega project from M.G. Road in city centre to Baiyappanahalli in the eastern suburb covers 6.7 km on elevated tracks with four stations in between.

"The railway safety commissioner (D.K. Singh) of South Central Railway will inspect the Metro facility, stations, signalling system and commuter facilities, including security measures, Sep 4-6 to certify them for commencing operations. We have set Sep 10 as the last date for securing Railway Board clearance to pave way for its inaugural run," Sivasailam said.

In the run-up to the D-day, Karnataka Chief Minister D.V. Sadananda Gowda reviewed the project works and commuted in the three-coach Metro Rail from M.G. Road to Baiyappanahalli with state Transport Minister R. Ashoka, Law Minister Suresh Kumar, lawmakers and senior officials.

"The prime minister has agreed to inaugurate the service soon after the operator (BMRCL) receives the mandatory clearances. We hope to launch the service from Sept 15 or 17 and offer it to the eight-million citizens as a Dasara gift," Gowda told reporters after riding on the Metro for about 15 minutes each.

Though Manmohan Singh laid the foundation stone for the project June 24, 2006, the corporation only began civil works in 2007 and executed Reach-1 in March 2011, 24 months behind the original schedule. This led to a cost escalation of Rs.3,451 crore from the estimated cost of Rs.8,158 crore.

"We have invested Rs.4,000 crore so far in the project, including Rs.360 crore on civil works. We will operate five trains of three coaches in both directions with 10 minutes frequency from morning till late night to ferry about 1,000 commuters on each trip," BMRCL spokesman B.L.Y. Chavan told IANS.

The first phase comprising two corridors will cover a total of 42.3 km across the city, with 18.1 km on east-west corridor and 24.2 km on north-south corridor, including 8.8 km underground in the city centre. There will be 41 stations.

Being built on public-private partnership model, with the state and central governments holding 15 per cent equity each (Rs.1,224 crore), the project has 25 per cent (Rs.2,040 crore) as subordinate debt and 45 per cent senior term debt from Japan International Cooperation Agency (JICA).

Delhi Metro hikes parking fees from September 8

NEW DELHI: The Delhi Metro Rail Corporation (DMRC) is hiking its parking fees from Sep 8 onwards, according to a DMRC official.

The monthly parking fee for car goes up to Rs.625 from Rs.500; motorcycle, scooter and autorickshaw to Rs.300 from Rs.250; and cycle-rickshaw to Rs.30 from Rs.20.

"The fee at Metro stations is much less than those levied by the Municipal Corporation of Delhi (MCD) and New Delhi Municipal Council (NDMC)," the DMRC official said.

The increase apart, the DMRC also introduced a monthly parking pass Thursday at select stations.

"These monthly passes will be issued to any regular commuter using smart card, provided they have used their smart card for at least 20 days in August," the DMRC official said.

To avail this facility, the commuter should give a request letter with the copies of driving licence, registration certificate and smart card at the 18 stations earmarked.

The 18 stations are: Dilshad Garden, Jhilmil, Shahdara, Seelampur, Tis Hazari, Pulbangash, Pratap Nagar, Shastri Nagar, Inder Lok, Kanhaiya Nagar, Rohini West, Rithala, GTB Nagar, Patel Chowk, RK Ashram, Moti Nagar, Janakpuri East and Uttam Nagar East.

The Delhi Metro makes over 2,400 trips per day, traversing about 69,000 km and ferrying around 17 lakh passengers on working days.

2G scam: No Dayanidhi Maran role in Aircel deal, CBI tells Supreme Court

NEW DELHI: The Central Bureau of Investigation (CBI) on Thursday told the Supreme Court that there was no evidence to suggest that former communications minister Dayanidhi Maran used coercive methods to force C. Sivasankaran to sell his stakes in telecom company Aircel to Malaysia-based Maxis group.

Senior counsel K.K. Venugopal, appearing for the probe agency, told the apex court bench of Justice G.S. Singhvi and Justice A.K. Ganguly that the CBI "may examine" the then finance minister Jaswant Singh over alleged wrongdoings in the communications ministry in the Bharatiya Janata Party-led National Democratic Alliance government.

He told the court that Jaswant Singh headed the empowered group of ministers (EGOM) when Arun Shourie was the communications minister between 2003-04. The CBI told the court that it would complete its investigation into suspicious transactions linked to the 2G allocation by Sep 31.

Talking about allegations against Maran, Venugopal said there was no evidence of coercion used by DMK leader Maran in the sale of Aircel by Sivasankaran to Maxis. Maxis was in touch with Maran before Sivasankaran off-loaded his stakes in the telecom company.

DMK spokesperson Elangovan told IANS in Chennai: "The whole 2G case is without any evidence. The cases against Raja and Kanimozhi will also fail."

The CBI told the apex court that there was deliberate and undue delay on the part of the DoT (department of telecommunication) and the (then) minister in the issuance of letter of intent to Aircel under its previous owner and "undue favour was shown" the moment the company was taken over by the Maxis group.

It was alleged that Maran created a situation that forced Sivasankaran to sell his stake in Aircel to Maxis group, believed to be close to the minister's family.

Venugopal also gave to court the CBI's status report on its investigations into the 2G scam in a sealed cover. One report each was submitted by the Enforcement Directorate (ED) and the Income Tax department.

The CBI said the investigation into the alleged wrongdoings in the communications ministry was broadly in four parts dealing with the tenures of communications ministers Pramod Mahajan (2002-03), Arun shourie (2003-04), Dayanidhi Maran (2004-07) and A. Raja (2007-10).

Venugopal said that the CBI found little evidence of lapses during Arun Shourie's tenure, but there were variations in the policy and its implementation in Pramod Mahajan's tenure and it was being further investigated.

4G, 3G to grow parallelly in India: Ericsson

NEW DELHI: Swedish telecom equipment manufacturer Ericsson on Thursday said that the fourth generation (4G) services for wireless communication will not effect the existing 3G services and the two will grow parallelly in the country.

"4G will complement 3G with its data services. We are optimistic 4G will be a big market in India. In most cases, 3G and 4G would go parallelly," Mikael Back, vice president of product and portfolio management, business unit networks, Ericsson AB, told IANS.

Ericsson is working with many players in India on long term evolution (LTE) technology. The company has already conducted field trials of 4G LTE mobile technology with Reliance Industries Limited (RIL) and Qualcomm and is in talks with other players as well.

LTE is the global standard for the fourth generation of mobile broadband and is being supported by all major players in India. LTE is expected to transform the mobile-broadband user experience by providing the ultra-high data speeds needed for services such as internet TV, mobile video-blogging, online video games and the mobile office environment.

RIL won pan-India broadband wireless access (BWA) licence in the BWA spectrum auction last year, while Qualcomm acquired BWA licenses in four circles including Mumbai and Delhi. Aircel, Bharti, Tikona and Augre also won BWA licenses in select circles.

"The market in India is very good and we will be extremely strong," said Back.

Talking about the pricing of LTE devices, Back said that unlike 3G devices, LTE devices will be expensive in the initial phase, but prices will slide once there is a growth in demand.

The roll out of 3G services in India begun last year in a phased manner. However, the service has so far garnered lukewarm response from the price sensitive Indian market.

Great Lakes Institute of Management to invest Rs 100 cr on new campus at Gurgaon

NEW DELHI: Great Lakes Institute of Management on Thursday said it will invest Rs 100 crore to set up a new campus at Gurgaon in the next two years.

The management institute, which on Thursday announced the launch of its working professional programme in the National Capital Region, currently runs one institute in Chennai.

"A new campus would be set up in Gurgaon with an investment of Rs 100 crore in the next two years," Great Lakes Institute of Management said in a statement.

The Gurgaon campus will offer programmes for working professionals as well as the full-time flagship one-year PGPM (Post Graduate Professional Programme in Management).

The Chennai campus, which has also been set up with an investment of around Rs 100 crore, has been offering programmes for working professionals including the 2-year PGWPM (Post Graduate Working Professional Program in Management) weekend programme and a new PGWPM (Energy).

"With this launch of our programmes in Delhi-NCR, we wish to bring the excellence in management education developed in Chennai over the past eight years closer to students and corporations in Delhi-NCR," Great Lakes Founder and Dean Bala V Balachandran said.

Great Lakes is led by Padma Shri awardee Bala V Balachandran, who is the J L Kellogg Distinguished Professor Emeritus at US-based Kellogg Business School, USA.

SCI to take up intra-industry complaints on fast track

NEW DELHI: The Advertising Standards Council of India (ASCI) on Monday said it will introduce a fast track redressal procedure, effective from September 1, 2011, for speedy resolution of intra-industry complaints.

For the purpose, the advertising industry watchdog has set up the Fast Track Complaints Council (FTCC), which is aimed at providing decisions regarding a complaint within seven days of registration.

"With the introduction of the fast track procedure, ASCI aims to provide a platform for member advertisers to quickly resolve intra-industry complaints against advertisement through industry self-regulation process instead of seeking expensive court litigation," ASCI Secretary General Alan Collaco said in a statement.

The FTCC is a 14-member panel, nominated from the existing 21 Consumer Complaints Council (CCC) members.

"The whole process from receiving the complaint to the decision of the FTCC is expected to take no more than seven working days...If the complaint is upheld then the advertiser will have to communicate the decision to withdraw the ad to the media concerned within two working days from notification of the FTCC's decision," the statement said.

The fast track procedure will be reviewed by the ASCI board for a period of 4 to 6 months of its commencement.

"Based on the results and experience, the Secretary General and the FTCC will make recommendations to the ASCI Board for making appropriate amendments, if any, to the Fast Track Procedure," the statement added.

L&T construction bags Rs 797 crore order

NEW DELHI: L&T Construction on Thursday said it has bagged Rs 797 crore orders in building and factories segment.

"A major order Rs 797 crore has been secured from a leading developer for mixed use construction comprising predominantly of residential, including retail and commercial developments at Mumbai," the company said in a statement.

The above order enhances orderbook of the company that has secured design and build contracts for airports, IT parks, commercial and residential space, it said.

Larsen & Toubro had last month bagged Rs 1,210 crore order from Qatar General Electricity & Water Corp for supply and construction of sub-stations. The order was for supply and construction of thirteen extra high voltage substations in Qatar.

Cabinet approves 5 pc govt stake sale in BHEL

NEW DELHI: The union cabinet on Tuesday approved a plan to sell 5 per cent of the government's stake in power gear maker Bharat Heavy Electricals (BHEL), the government said in a statement.

The government will sell 5 per cent of its 67.7 per cent holding in BHEL through a follow-on public share offering. At current prices, the stake is valued at about $940 million.

The stake sale is part of the government's plan to raise 400 billion rupees ($8.7 billion) through stake sales in state-run firms in the current fiscal year to March 2012.

BHEL has shortlisted Bank of America Merrill Lynch, Morgan Stanley and two Indian banks to manage the share sale, sources with knowledge of the situation told Reuters last month.

ONGC Videsh Ltd (OVL) to invest $ 1.5 bn in an Iraq oil block

NEW DELHI: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), may invest over $ 1.5 billion in exploring for oil in a block that was awarded to it by the erstwhile Saddam Hussein regime.

"We are nearing finality on the contract for Block-8. It is likely to be signed in next six months," an official said.

Block-8, located in the western desert in southern Iraq bordering Saudi Arabia and Kuwait, was awarded to OVL in November 2000 by the then Saddam Hussein government. However, the government formed after the US invasion of the oil-rich country, sought re-negotiation of the contract which has now been concluded.

The post-Saddam Hussain regime had initially agreed to signing of a Production Sharing Contract (PSC), where OVL would have got ownership of the oil it produced from Block-8. But the success of post-war licensing rounds, where global majors committed to develop oilfields for a small fee, has seen Baghdad change track and offer a service contract to OVL.

The block already has a discovery and is estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable, he said, adding OVL has committed investing $ 86 million in two phases of exploration and $ 1.45 billion in development of the reserves thereafter.

The contract would be a service contract wherein OVL will be paid about 18 per cent rate of return on its investment. The company holds 100 per cent interest in the block.

"We are currently agreeing on finer details of the contract," he said.

Exploration and development contract for Block-8, Western Desert, was signed by OVL with the Oil Exploration Company of Iraq, on November 28, 2000, at New Delhi.

As per the 2000 contract, OVL was to reprocess and interpret existing 2-D seismic data. It was also to acquire, process and interpret 1,000 km of 2D and carry out 300 sq km of 3D seismic survey besides drilling two wells.

The service contract now being drawn would be similar to the one China National Petroleum Corp (CNPC) had signed recently for developing Al-Ahdad oilfield in central Iraq. "It will be a service contract wherein OVL will be paid about 18 per cent rate of return on the investment it makes in finding and producing oil from Block 8," the official said.

It would act as the operator of the field until it recoups all its costs and set up a joint operating company with the local operator to take over once development costs have been repaid.

Baghdad has, however, refused the Tuba oilfield, for which OVL, in consortia with Reliance Industries and Algeria's Sonatrach, were in negotiations before the US attack on Iraq.

Suzlon Energy planning $1.3 bn wind project to power Australian homes

MELBOURNE: Wind power company Suzlon Energy is planning a $ 1.3 billion project in regional South Australia to power 225,000 homes a year.

According to an ABC report today, Suzlon Energy Australia said the $ 1.3 billion wind farm will be built 20 kilometres South-West of Ardrossan, a small town on the East Coast of the Yorke Peninsula.

It said up to 180 turbines will generate 600 megawatts of energy and deliver power to 225,000 homes in Adelaide via an undersea cable.

The project is expected to create 500 construction jobs and 50 ongoing jobs will be completed by the end of 2015, it said.

Suzlon Energy Australia Commercial Director Chris Judd said the company was approached by local landowners last year to develop the project.

"It's basically been a landowner-developed project and this has been a dream of theirs for over seven years now, so the beauty of this project is that it does come with some seven years of homework and data, etc, behind it to help justify its economics," he said.

Suzlon is also involved with wind farm projects at Hallett, North of Adelaide.

Premier Mike Rann said the Yorke Peninsula proposal will add to South Australia's green credentials.

It was reported that Rann met with the company, the biggest wind turbine supplier in India and the world's fifth-largest, during a trade trip to the South Asian nation earlier this month, where he stated that Suzlon had "really been helping us in generating wind power".

Chief Ministers of 11 states to support an anti-tobacco campaign

PANAJI: Chief Ministers of 11 states in India have pledged their support to Voice of Tobacco Victims (VOTV), a national campaign against chewing tobacco in their states to root out the social evil, a national NGO said today.

General Secretary of National Organisation for Tobacco Eradication (NOTE), Shekhar Salkar stated that chief ministers of Assam, Goa, Punjab, Kerala, Karnataka, Maharashtra, Arunachal Pradesh, Uttarakhand, Chhattisgarh, Rajasthan and Gujarat have pledged to do their best for oral cancer victims, doctors and tobacco control advocates of their states.

"The victims, along with oncologists met their respective chief ministers and urged them to protect the people of their states from the harmful effects of tobacco products by banning gutka, implementing stringent pictorial warnings on chewing tobacco products, putting an end to indirect advertising of chewing tobacco product, stopping sale of chewing tobacco products near educational institutions, increasing taxation on all tobacco products," Salkar stated.

"All the chief ministers assured the victims of their commitment by signing a pledge calling for a ban on gutka and khaini products," Salkar said.

"I will raise my voice against this issue and support all initiatives to rid India of this menace of gutka and khaini and help save millions of Indian lives," reads the pledge.

It is heartening that custodians of health of the state have pledged their support for tobacco control, said Dr Pankaj Chaturvedi, Associate Professor, Head and Neck Department Tata Memorial Hospital, Mumbai.

"We salute all those CMs who have openly supported and urge those, whom we could not reach and those, who are still to decide about their stand on this issue, to support this initiative to get rid of this menace from India," he added.

VOTV is a national campaign to advocate against the chewing tobacco and other smokeless forms of tobacco. It has been conceptualised and initiated by the victims of oral cancer, who have come together to promote greater awareness about the harmful effects of tobacco use.

Numerous doctors and directors of regional cancer centres from across the country are supporting VOTV for the cause.

In March, directors of 17 regional cancer centres in India, including the Tata Memorial Centre (TMC), had written letters to the Prime Minister Manmohan Singh to ban gutka and other chewing tobacco products in India.

A recent report by experts of National Institute of Health and Family Welfare (NIHFW) on the harmful effects of gutka informs that the number of oral cancer cases in India alone stands at 86 per cent of the oral cancer figures across the world.

India has the highest number of oral cancer patients in the world with 75, 000 to 80, 000 new cases of oral cancers a year. Shockingly, chewing tobacco and gutka contribute to 90 per cent of oral cancer cases in the country.

According to last year's Global Adult Tobacco Survey (GATS 2010), nearly 1/3 of Indian population is addicted to smokeless tobacco, including a large section of children and youth in India.

Depending upon the geographical areas, different names with different combinations of smokeless tobacco are marketed, such as mawa, khaini, gudakhu, panni etc. All these items essentially have tobacco.

"Despite the Supreme Court order banning gutka in plastic pouches, gutka, pan masala and other smokeless tobacco products are still widely sold in plastic pouches. The enforcement agencies need to take actions against the errants," Salkar said.

KK Modi eyes 51% in Godfrey Phillips

NEW DELHI: The KK Modi group is set to wrest majority control in cigarette maker Godfrey Phillips India (GPI) from American tobacco major Philip Morris as the Indian business house leads the company's charge into noncigarette segments such as beedi and chewing pan masala , potentially to the discomfort of the foreign partner.

GPI, a Rs 3,000-crore publicly-listed company, is a joint venture between the Modis and Philip Morris who each held 36% stake originally. However, changing equations , and the new diversification plans-led by the Indian promoter-saw the Modis pick up an additional 11% stake from the foreign partner last year, taking up their holding to 47%.

Modi, chairman of Modi group, told TOI that as per an agreement between the partners, he has the "right" to take up his holding to 51% by buying further into Philip Morris' holding to get a majority control of the company, India's second-biggest cigarette maker that sells the "Four Square" brand and also distributes the iconic Marlboro brand (from Philip Morris stable).

This would bring down the stake of Philip Morris to 21%. Modi said the market was currently "too hot" for buying the additional stake from Philip Morris. "Whenever the market will come down, we will buy. We have the freedom and the agreement to go to 51% and they have agreed." The scrip of GPI closed at Rs 2,370 on the Bombay Stock Exchange , down 1.3%. Modi said the idea is to give one promoter management control to freely manage operations. "There was a great (deal of) uncertainty, even though by agreement we had the management control. But by shareholding , we were sharing the management control with Philip Morris. So, Philip Morris agreed that it is better for one person to control, because now we are diversifying into many areas like beedis and chewing tobacco... which are not their forte."

Sources, however, said the American tobacco major was not very comfortable with Modi's plans to diversify in noncigarette businesses. However , it had to give in considering the strength and experience of the Indian partner and its reach in the market. Philip Morris officials did not comment on the story despite several attempts.

Modi said his group will invest over Rs 2,000 crore in the coming years for expansion, and a majority of this will be pumped into GPI to fund its diversification plans as well as for a new factory in Mumbai. The cigarette business was not enough to sustain his group's vision of achieving a 30% growth in revenues and margins every year, he said. "The cigarette business is not growing at that rate. To achieve 30% growth, we cannot go with cigarette alone." While Modi's sons Lalit (the former IPL commissioner ) and Samir are on the company's board, his granddaughter Priyal (his daugther Charu's daughter) is helping him with the beedi business.

The company's beedi business is under the brand "Sona" while in chewing pan masala , it has the brand "Pan Vilas" which was launched early last year in some markets of the country. Modi said the agreement with Philip Morris also stipulates that if and when he decides to sell his holding, the American company will have the first right to buy it. "Only if they cannot buy will we have the right to sell it to someone else."

Foster's launches Art of Chilling global marketing campaign

MUMBAI: Beer brand Foster's, launched in 2001 in India, recently unveiled its Art of Chilling (AOC) global marketing campaign. The campaign was devised after studying how Indian audience relax and will associate with cricket, music, follow trends, travel or even simple everyday chilling activities like watching TV.

Foster's has also created events like Foster's Art of Chilling@Home Parties and Foster's LOL evenings. Mr. Deepaknath, category head, SABMiller India explains, "LOL Evenings allows consumers to chill out with friends by sharing of common interests, especially humour, which is core to the Australian essence of Foster's."

As part of the campaign Foster's has also setup Foster's AOC zones around the country. These AOC zones, which are essentially theme bars are currently present in 3 zones in Bangalore and the brand plans to roll them out to other markets as well.

Mr. Deepaknath claims the response to these outlets has been positive, "a few more outlets are asking us to replicate the zones in their outlets as well," he says. The brand is also engaging consumers in the digital medium through its newly launched web site, Facebook fan page and Twitter account.

Foster's has also created its created virtual characters called Chill Head who report about trends and topics touching consumers' interest covering gadgets, music and sports.

Tata Global targets revenue of $ 5 bn revenue

KOLKATA: Tata Global Beverages (erstwhile Tata Tea) is targetting a revenue of $ 5 billion, its Chairman Ratan Tata said today.

"We will have to meet the target of $ five billion to move up the value chain and increase presence in the high-end business," Tata told shareholders at the company's AGM here.

"This will be done through acquisitions and organic growth," he said.

Tata said the roadmap for Tata Global was to become a beverages company and food products which have nutritious value.

"We have also introduced ayurvedic products," he said. About the joint venture company with Pepsico, he said the entity would help distribution and increase the marketing reach of Tata Global products.

Tata said the company would not enter the carbonated drinks segment.

"We will also focus on new geographies", he said.

Emami to invest up to Rs 40 cr on new plant in North-East

New Delhi: Kolkata-based FMCG firm Emami today said it is setting up a new plant in the North-East of the country at an investment of up to Rs 40 crore as part of expansion plans.

Construction work on the new plant is likely to start in the next two months, the company said, adding that it is expected to be operational within two years.

"A new plant is coming up in the North-East of India. We will invest Rs 30-40 crore in it. We are finalising the land deals there. Construction work is likely to start in the next two months," Emami Executive Director Mohan Goenka said

However, he declined to reveal the name of the state where the new plant will come up.

Emami already has two plants in Assam and according to sources, the new plant - from where the company will manufacture the products of most of its brands, including Boro Plus and Navratna - is likely to come up in the same state.

At present, the company has around 13 facilities across the country. Goenka said setting up the new plant is in line with the company's strategy of sustaining an annual growth rate of 22 per cent over the next few years.

"Our annual growth is estimated to be around 22 per cent. To maintain this rate, we have to expand our production capacity," he said.

Emami expects to close this fiscal with a turnover of Rs 1,600 crore. Last fiscal, it had a turnover of Rs 1,250 crore.

In addition, the company is already in the process of setting up a plant in Bangladesh at an investment of Rs 15-20 crore.

This is expected to be operational in the next 3-4 months.

Sony India eyes Rs 2,000 crore business this festive season

KOLKATA: Consumer electronics major Sony India today said it is eyeing business worth Rs 2,000 crore during the current festive season, a 35 per cent growth over last year.

"We are aiming at sales of Rs 2,000 crore during this festive season, from August to October," Sony India Senior General Manager (Sales) Sunil Nayyar said here today.

He said the company hopes to garner sales of Rs 245 crore from the eastern region during the Durga Puja.

Nayyar said the growth would be in line with expansion in the overall market but there won't be a big shift in the market share in the major product areas that it operates in.

He said all three major products, television, cameras and laptops are expected to do better than last year.

The company is targeting a turnover of Rs 7,000 crore for the entire fiscal, about 30 per cent higher than 2010-11.

By 2015, the share of Sony's Indian operations in its total global turnover is expected to grow to 10 per cent, almost double from about 5 per cent currently,

Amway looking to set up manufacturing facility in West, South

VADODARA: Amway India Enterprises on Wednesday said it plans to set up a manufacturing facility with investment of Rs 400 crore to cater to the market in western and southern parts of the country.

Talking to reporters after launching the Nutrilite Kids Products in the kids range here, Amway vice-president Anchita Banerjee said, "We are planning to set up manufacturing plant in western India or south India for meeting the market demand."

No decision has been taken yet on the location, he said. "We are in the process of identifying the land. We are already in talks with state governments for the purpose. A total investment in this proposed facility will be around Rs 400 crore," he added. PTI

Godrej Agrovet to foray into micro-irrigation business

MUMBAI: Godrej Agrovet Limited (GAVL), a Godrej Industries company, plans to enter the micro-irrigation business by setting up a new subsidiary.

"We have big expansion plans for our agriculture business under GAVL. Under GAVL, we are soon planning to foray into micro-irrigation business, including drip irrigation, by forming a new subsidiary," Godrej Industries Chairman Adi Godrej said here.

The new subsidiary will be formed this fiscal year, he added.

The size of the market for micro irrigation systems, which involve drip and sprinkler irrigation, is around Rs 3,000 crore in India.

Meanwhile, GAVL has formed a subsidiary, Godrej Seeds and Genetics Limited (GSGL), which will serve as its vehicle for entering the hybrid seed business in the country.

GSGL, to be based in Hyderabad, will focus on three major crop seeds -- maize, paddy and bajra -- for distribution in states like Andhra Pradesh, Bihar, Karnataka and Maharashtra and will handles all existing hybrid seed sales and breeding activities previously managed by Godrej Agrovet.

"We believe the future of the Indian seed industry is still being written. Despite the presence of multinational players, there remains tremendous scope for introducing superior germplasm to Indian farmers. For a few years now, we have been working quietly in this space and we are ramping up our efforts for a major commercial debut," GAVL Managing Director Balram Singh Yadav said.

GAVL is a diversified agri-business company having interests in animal feed, oil palm plantation, agri-inputs and poultry.

Its sales jumped by 40 per cent in the first quarter of FY2011-12, its best-ever first quarter performance, vis-a-vis the first quarter of FY'11.

Meanwhile, speaking on the potential of the agri-businesses, Godrej observed they have reported strong growth in revenues and profits owing to robust demand for products across business segments.

All of GAVL's business verticals, including oil palm, agri-inputs and animal feeds, are poised to deliver significant growth, he said.

The oil palm business has been an outperformer during the quarter, with maturing plantations yielding higher output, Godrej said, adding that GAVL also has new products in the pipeline for FY2011-12.

Meanwhile, Godrej Industries' consolidated net profit grew by 46.34 per cent to Rs 71.33 crore in the first quarter of FY'12, compared to Rs 48.74 crore in the corresponding quarter of the previous year.

Preethi Kitchen Appliances sets turnover target of Rs 560 cr for current fiscal

COCHIN: Preethi Kitchen Appliances Pvt Ltd, a leading player in kitchen appliances market in the country, has set a turnover target of Rs 560 crore for the current fiscal. The company had achieved a turnover of Rs 425 crore last year.

A leading player in the mixer grinder segment, Preethi sold 1.5 million units in the country last year. The total sales of mixer-grinders in the country stood at 6 million units. This year the company plans to sell 1.8 million units.

The company sold 2.80 lakh units in Kerala last year achieving a turnover of Rs 75 crore. This year the company has targeted Rs 100 crore turnover from the state, Mr Vijay Sreenivasan, Managing Director of the company said here.

Preethi range of appliances includes mixer grinders, induction cooktops, coffee makers, kettles and irons etc. The company has seven manufacturing units spread across Tamil Nadu and Himachal Pradesh.

LG eyes 33% marketshare of the country’s home appliances market

NEW DELHI: Korean consumer durable maker LG is eyeing 33% marketshare of the country's home appliances market this year. The company plans to invest close to Rs 350 crore in production and marketing of its home appliances range to attain the targeted marketshare.

"India is a very strategic market for LG Electronics and our objective is to introduce flagship products into the market which reiterate the company's efforts to constantly create and introduce new technological innovations," Soon Kwon, MD, LG India said.
The company's home appliances range is expected to grow at 35% this year.

It launched a new range of microwave oven and washing machine on Thursday. The new fully automatic washing machines range is priced between Rs 24,290- 70,990, while the microwave ovens are available between Rs 18,490-21,290.

"At LG, we maintain a relentless focus on finding out what customers want and then reflecting those desires and needs into products that enrich their lives," Kwon said.

Indian toy industry worth Rs 1700 cr is here to stay as toys inspired by flicks create ripples among kids

NEW DELHI: If you don't know who Lightning McQueen, Marlena and Sebastien are, ask any preteen in your neighbourhood and they will probably show you one or more of them. These are car characters from Hollywood computer animated film Cars 2 which kids know all about.

Cars 2 is the latest success story in India's booming toy economy that has become a huge money spinner for toy makers, retailers, some Hollywood studios and children's television channels.

The stats speak the story: the Indian toy industry is estimated to be worth Rs 1,700 crore and growing 15-20% a year. According to a Euromonitor study, spending on toys and games in India is set to grow at 157% between 2009 and 2014, much faster than other Asian countries such as China (84%), Taiwan (35%), South Korea (33.1%) and Singapore (17.2%).

"Consumption is not just a necessity but has become a language to express oneself," Future Brands, CEO and social commentator Santosh Desai said. Attention deficit of working parents towards their children is certainly one of the reasons for booming toy market, but keeping kids engaged is in itself a very big task. So, here toys and gadgets come into play, Desai said.

So, kids are running the show, as working parents - richer and much busier than the previous generation - try to make up for their lack of time to spend with kids by pampering them and conceding to most their demands.

Funskool, a joint venture between tyre maker MRF and US toy maker Hasbro Inc, recently introduced two high-end block games - Mindstorm and Taj Mahal- carrying price tags of Rs 22,000 and Rs 27,000, respectively.

It clocked revenues of Rs 80 crore in the year ended March 2011, while Mattel, which sells toys under Fisher-Price, Barbie and Hotwheels brands, has an India turnover of approximately 300 crore.

Toys inspired by flicks such as Transformers, Batman, Spider Man, Madagascar and Lord of the Rings too have created ripples among kids and young adults. Television characters and cartoons-inspired shelf-scorchers include BeyBlades, Ben 10 and Blazing YoYos.

There are much more to come. Toy maker Mattel's miniature replicas and Simba Toys' remote-controlled cars inspired by the Disney Pixar production were instant sellouts. The Walt Disney Company VP, consumer products, publishing and retail, Roshni Bakshi says the toys helped its licensee partners double their sales volume.

"Today with the presence of so many modern trade stores and the whole experience of touch and feel available, the Indian toy industry is poised for growth," says Bakshi.

BOOMING MARKET
Indian parents already spend an average Rs 250-300 on a toy and this is going up more and more innovation-driven high-end toys and games - from high-priced board games and play gyms to BeyBlades and remote-controlled planes - enter the market.

"The influx of hi-tech electronic toys accompanied with electronic gaming gadgets is making the Indian toy market on its way to becoming one of the most advanced industries in the subcontinent," says R Jeswant, marketing and sales head at Funskool, the second largest toy maker in the country behind Mattel.

Apollo Tyres leases 10,000 hectares in Laos for rubber plantation

KOCHI: With the domestic tyre industry facing a crisis due to the global shortage of natural rubber, Apollo Tyres Ltd has taken on lease about 10,000 hectares of land in Laos, in South-East Asia, for rubber plantation, a top company official said.

ATL (rpt) ATL is the first Indian company to acquire a property for growing rubber. It would take 2-7 years for the yield to be tapped, ATL (rpt) ATL Chairman and Managing Director Onkar S Kanwar told reporters here last night after a meeting of the company's board of directors.

Apollo's largest unit is situated at Limda, in Gujarat, and its two other units are at Perambra and Kalamassery, Kerala. Its latest next generation plant is near Chennai and the four together have a combined production capacity of around 1,180 tonnes of tyres a day in India.

In South Africa, the Ladysmith and Durban plants account for a combined capacity of around 180 tonnes and the Enschede plant in the Netherlands adds another 180 tonnes a day, taking its total current production capacity to around 1,550 tonnes a day.

Kanwar said Apollo will invest Rs 500 crore this fiscal on its units in India and abroad. Of this, 6 million euros would be invested in Europe, USD 30 million in South Africa and the rest in India, he said.

The company will pump Rs 40 crore into its Perambra unit, in Chalakudy, and Premier Tyre facility, at nearby Kalamassery.

The rest would be utilised for capacity augmentation at the Chennai plant, which manufacturers tyres for trucks and cars.

The plant capacity would be enhanced to produce 6,000 tyres per day for trucks, compared to 3,000 at present, and 16,000 cars tyres per day, as against 8000 at present, Apollo Tyres Vice Chairman and Managing Director Neeraj Kanwar said.

The company aims to become one of the top 10 global tyre companies in the next five years.

On the industrial climate in Kerala, where Apollo declared a lockout some months ago at its Perambra unit, he said both plants are doing well. By and large, labour was good. But in Chennai and Gujarat, there was very a different environment, he said.

He denied reports that the company had plans to shift one of its units in Kerala to Gujarat due to the labour troubles.

India is Apollo Tyres' largest market, accounting for 62 per cent of revenues, while Europe contributes 25 per cent and South Africa 13 per cent. The company exports tyres to over 70 countries from India, Europe and South Africa, Apollo Tyres Chief - India Operations Satish Sharma said.

Honda Motor bets on 100-cc bikes for rural push in India

NEW DELHI | MUMBAI: Japan's Honda Motor, the world's largest motorcycle maker, is betting on the small capacity 100-cc economy bikes as it embarks upon a rural push in the world's second biggest two-wheeler market, said people with knowledge of the development. The Tokyo-based firm, which separated from its long-term Indian partner turned competitor Hero MotoCorp, has appointed five management teams across India led by Japanese executives to create a new decentralised marketing structure for consistent sales, people from the industry told ET.

The Japanese two-wheeler maker is working on a new version of the CD platform in the 100-cc segment, where Hero's CD Dawn and CD Deluxe have the highest sales. Honda's new bike based on the 100-cc technology is targeted at India's vast rural hinterland that contributes almost half of the volumes to the nearly 5 million bikes Hero sells every year. The thrust on rural market is a reversal of sales strategy for Honda, which has so far been garnering most of its sales from cities and big towns.

"The company is currently focusing and tweaking bikes relevant for the Indian market to get closer to the customer ," said Abdul Majeed, auto practice leader, PwC. The 100-cc bikes laid foundation for Hero MotoCorp, erstwhile Hero Honda , to emerge as world's largest twowheeler firm in terms of volumes. Last year, Honda sold its 26% stake in Hero Honda to India's Munjal family while the technology agreement between Hero and Honda permits the former to use the joint name in products till 2014.

Honda, which owns the CD brand globally jointly with Hero, is likely to bring in a new improved engine with fresh design cues to attract young and rural India. Hero's claim on the CD brand exists only till 2014, by when Honda wants to emerge as a major player in the Indian circuit. Honda Motor did not reply to an email query from ET about its rural thrust and new marketing strategy. However, the company said it aims to emerge as a major player in India in the next few years as it comes up with strategies to consolidate.

Suzuki Motorcycle sales up 39 pc in August

NEW DELHI: Two-wheeler maker Suzuki Motorcycle India today reported 39.12 per cent jump in sales in August to 26,897 units.

The company had sold 19,334 units in the same month last year, Suzuki Motorcycle India Pvt Ltd (SMIPL) said in a statement.

"We have received very good response from the market to all our products. The growing customer satisfaction among present owners of Suzuki products has led to a positive word-of-mouth in the market," SMIPL Vice-President (Sales and Marketing) Atul Gupta said in a statement.

Auto component sector demands labour reforms

NEW DELHI: Delay in labour reforms hampers employment generation in the automobile component sector, the nodal agency for the Indian auto component industry said Tuesday.

"We believe that employment will get a boost by labour reforms which is the need at the moment," Srivats Ram, president, Automotive Component Manufacturers Association of India (ACMA) told reporters on the sidelines of an industry event here.

According to Ram, the slow pace of labour reforms hampers the huge opportunity for the country's workforce to be employable in the sector.

"We currently employ around a million people directly and another million indirectly and this number is expected to double in the coming time," Ram said.

For this to happen, reforms are needed, he said.

ACMA further said that the industry was looking forward to a flexible labour policy and that its views on the same are being represented in front of the human resource and labour committees of the planning commission for the twelfth five year plan.

"We want a policy that allows us to adjust our work-form as per market economy. In the medium-to-long term there will be ample employment opportunities in the sector and there should not be any uncertainty that it will be a hire and fire policy types," Ram said.

The Indian auto component industry currently has 50 percent of its employees as permanent and the other half on a consultant basis.

"We want this 50 percent permanent number to be maintained and even grow as we spend a lot of money on training our manpower but there is a need of flexibility here," Arvind Kapur, ACMA vice president said.

Commenting on the recent labour troubles in the auto sector, Kapur said there is a need for better understanding and cooperation between the management and the labour.

"We have a very young and aspiring workforce. There needs to be better understanding between both the sides," Kapur added.

General Motors to source 95 per cent of components locally

FARIDABAD: General Motors said on Tuesday it plans to source about 95 percent of its components from local manufacturers for its newer models.

"The percentage of locally sourced parts and components in new vehicles can be as high as 95 percent," Ashwani Muppasani, vice president, global purchasing and supply chain, General Motors India said at a Federation of Indian Micro and Small and Medium Enterprises (FISME) event here.

According to Muppasani, the company expects the small and medium enterprises (SMEs) suppliers to adhere to the strict global quality and be certified for technical specification (TS certified) which is meant for engineering industries.

The company plans to double its current production capacity from 150,000 units to 300,000 units by 2014 and envisages a big role for small and medium enterprises.

Meanwhile, the SMEs industry raised concerns on the rising number of auto component imports.

"While there is a positive medium-to-long term outlook for demand in the Indian auto sector, there are concerns about rising imports of auto parts and components," a FISME research brief said.

Data furnished by the Automotive Component Manufacturers Association of India ( ACMA) showed that auto component imports grew by 8.5 percent at $30.2 billion in 2010-11.

Skoda Auto India sales up 20% in August at 1,812 units

NEW DELHI: Skoda Auto India on Thursday reported 20 per cent increase in sales to 1,812 units in August this year over the same month last year.

The company had reported sales of 1,512 units in August 2010.

Commenting on the sales performance, Skoda Auto India Board Member, Sales and Marketing, Thomas Kuehl said: "We are extremely positive about Skoda Auto's growth trajectory in India. Our endeavour is to consistently provide consumers with value products and services is one of the key factors contributing to our growth."

The entry level sedan scheduled to launch at the end of the year will also help us reach to a whole new set of audiences, he added.