Tamil Nadu Cement Corporation Ltd (TANCEM) to offload 25 per cent cement production in open market

TIRUCHIRAPALLI: In a boon to public reeling under spiralling construction cost, state-owned Tamil Nadu Cement Corporation Ltd (TANCEM) has decided to sell at least 25 per cent of its total production in the open market at competitive price. TANCEM, which usually supplies cement to state government departments like PWD, Electricity Board and DRDA, has two factories in the state with a total installed capacity of eight lakh tonnes per annum, company sources said. The company had sold cement in open market for a brief period between December 2009 and July 2010 but reverted back to direct sales to government departments. However, cement sales to departmental works had come down of late due to various reasons including suspension of civil works, following which the management of TANCEM had decided to sell cement in open market, company sources at its plant in Ariyalur, about 60 km from here, said. It has been now decided to market cement to both bulk and retail cusomers in the private sectors, according to sources. Besides Ariyalur factory with an annual production capacity of six lakh tonnes, TANCEM has a unit at Alangulam in Virudhunagar District with a two lakh tonnes capacity. In 2010-11, the Ariyalur unit recorded a production of 4.90 lakh tonnes, the sources said. They said the company would be able to sell its 'Super Star brand' ordinary portland cement (43 grade) at Rs 270 per bag (50 kg) as against the prevailing market price of Rs 300.

Hindustan Dorr-Oliver eyes more acquisitions in UK after Davy Markham

HYDERABAD: Engineering firm Hindustan Dorr-Oliver (HDO), a listed subsidiary of Hyderabad-based infrastructure firm IVRCL, is eying more acquisitions in Europe, group chairman E Sudhir Reddy said. HDO had acquired Davy Markham, a Sheffield, UK-based engineering firm for £9.5 million (Rs 64.5 crore) in March 2010. Davy Markham is into design, manufacturing and fabrication of heavy and complex engineering components and assemblies in the mining, nuclear, power generation and steel sectors. The move comes at a time when analysts were expressing concerns over the fall in revenues and profits of HDO and the weak revenue visibility from the order backlog. "We want to expand our base in the UK and have aggressively started looking at 4-5 more acquisitions, each costing £5-10 million," Reddy told ET. The target companies are in a radius of 50 km from the Sheffield facility of Davy Markham. HDO has shortlisted proprietary engineering firms specialising in the manufacture of components for mining, defence and nuclear sectors in and around Sheffield. "These acquisitions should support the growth of Davy Markham and expand its bouquet of offerings." The strategy is to get the manufacturing capabilities of the acquired engineering firms and set up their engineering design and manufacturing centres back in India, he said. "Majority of the works on behalf of Davy Markham and its associated firms subsequent to the acquisitions will be executed at the Indian facilities and the balance works and finishing touches will be handled at the UK facility. The idea is to be cost effective with the help of India design and manufacturing base," he said. Aimed at expanding the manufacturing infrastructure at Davy Markham, the company is in the process of acquiring 20 acre at the Sheffield facility for around £17 million, he said. Reddy added that Davy Markham is emerging as a £50-million company, and the 4-5 acquisitions and their merger into Davy Markham should enable it evolve into a £100 million to £150 million entity over 2-3 years. "The opportunities and product offerings from Davy Markham after the acquisitions will significantly increase and the growth of the UK firm will be faster. Davy Markham will be positioned as a uniquely focussed engineering design company with manufacturing bases both in Sheffield and India." Davy Markham, which used to bid for projects in the UK and Canadian markets, has expanded to Peru, Chili, Mexico and the US under the new management. It has also started bidding for underground mining projects in India, Reddy said. On Monday, HDO's shares fell 0.66% at Rs 37.60 on Bombay Stock Exchange. The exchange's benchmark Sensex lost 0.34% to close at 17,025 points.

Saint Gobain under CCI scanner for abusing its dominant position in the market

NEW DELHI: India's competition watchdog has launched a full-fledged investigation against French glassmaker Saint Gobain after a preliminary review found that the company's Indian unit deliberately lowered prices of its products to drive out competition. "We have substantial evidence that Saint Gobain Glass India Ltd (SGGIL) engaged in limit pricing to make entry into the float glass segment unprofitable for others," a senior official at the Competition Commission of India said. Limit pricing, a monopolist practice in which an incumbent firm deliberately cuts the price of its products to discourage other potential entrants, is considered anti-competitive in India and could attract penal action under anti-trust laws. But Chennai-based Saint Gobain Glass said the charge was baseless. "No clear case of dominance can be found against us," a director on SGGIL board said. The Commission, in June, opened a preliminary enquiry against the company on a complaint alleging that Saint Gobain had abused its dominant position in the market by lowering prices between October 2010 and June 2011.

Mudra sold to global giant Omnicom

New Delhi: Omnicom Group Inc, the world’s second largest advertising group after WPP, on Monday announced an agreement to acquire a majority equity stake in Mudra Group, controlled by the Reliance ADA Group. With annual revenue of nearly Rs 200 crore, Mudra is among the top five advertising agency groups in the country. Omnicom earlier had a 10 per cent stake in the company. The move is being seen by advertising pundits as part of Omnicom’s aggressive strategy to become a key player in the country, where it is much behind rivals WPP, Publicis and Interpublic. The Mudra acquisition will catapult it into the top three advertising networks in the country. Mudra was the only Indian majority-controlled agency in the top five. The others JWT, O&M, Draft FCB and Lowe are all majority or entirely foreign-controlled. Reliance ADA Group chairman Anil Ambani will also join the Omnicom International Advisory Committee as part of the agreement. Mudra Group consists of four agencies: branding and communications agency Mudra India, marketing and advertising agency DDB Mudra, integrated engagement and experiential agency Mudra Max, and Ignite Mudra, India's only agency that caters to entrepreneurs.Mudra has 26 offices across the country and an extensive field activation network. Its leading clients include Godrej Group, Future Group, LIC, United Spirits, Emirates, Dabur, Aditya Birla Nuvo, CavinKare, Union Bank of India, Bank of Baroda, Amrutanjan, HCC and Bennett Coleman & Co. "This acquisition is an important step in achieving Omnicom's strategy to extend and deepen our presence in rapidly growing markets," said John Wren, president and CEO of Omnicom Group. "DDB has been an excellent partner over the years. We have benefited immensely from the collaboration and transfer of knowledge from around the globe. We are proud to belong to such a storied network," Mudra Group CEO Madhukar Kamath said. "Omnicom and DDB have clearly been the inspiration for Mudra Group's transformative growth over the last five years. My colleagues and I look forward to the next decade of explosive growth in the Indian market."

Hero MotoCorp aims export of 10 lakh units in 5-6 yrs

NEW DELHI: Free from export restrictions imposed by its ex-promoter Honda, India's largest two-wheeler maker Hero MotoCorp today said it aims to sell 10 lakh units in the overseas markets in the next 5-6 years. The company, earlier known as Hero Honda, has already shortlisted some players to expand its export markets in a big way in the future. On the domestic front, the company is looking to invest about Rs 1,000 crore to set up two new facilities besides expanding the output of three existing plants. Addressing analysts in a conference call, Hero MotoCorp Senior Vice President (Marketing and Sales) Anil Dua said: "We are looking at an exponential increase in export numbers ... In 5-6 years of time, we aim to sell a million bikes (every year) in international markets, which will be 10 per cent of our total business." Currently, exports contribute less than 2 per cent of total sales, he added. The company had sold a total of 54,02,444 units during 2010-11 financial year. "We have been approached by several partners for distribution and assembly. We have already shortlisted some partners," Dua said without giving further details. The company is looking at exporting its products to Latin America, Africa and South East Asian nations, he added. Asked about investment that Hero MotoCorp might put into develop its export bases, Dua said the firm will invest in future, but now it will not financially support its channel partners. On the plans for setting up of two new factories and expanding the existing capacities, Hero MotoCorp Chief Financial Officer Ravi Sud said : "When we talk of capacity, we talk in slabs of 7,50,000 units. So, 1.5 million units capacity plants. In a phased manner, it will cost close to around Rs 1,000 crore."

Bajaj plans Rs 500-cr capex in 18 months; new Pulsar by January

MUMBAI: The country's second-largest motorcycle-maker Bajaj Auto will invest Rs 500 crore to add capacity and develop a new variant of the flagship Pulsar over the next 18 months. "We are investing Rs 500 crore till FY'13 for expansion. We had already spent Rs 150 crore last year," Bajaj Auto Finance President Kevin D'sa told reporters here today. The proposed capex will include development cost of the new Pulsar, which will be based on a new technology, and will be launched in December/January, the company Managing Director Rajiv Bajaj told reporters a day after announcing the Q2 numbers. The company reported a muted 6 per cent rise in net income to Rs 726 crore for the September quarter on a revenue of Rs 5,342 crore, which rose 21 per cent as its sales volume grew 16 per cent to 1,164,137 units. The lower numbers were primarily due to a forex loss of Rs 95 crore on valuation of forward contracts that were charged to the profit and loss account in this quarter. With production of over 2.25 million units in the first half, the Pune-based company believes the momentum is in place to end the year at around 4.5 million units. "We expect to produce about 4.5 million vehicles and hope exports will surpass 1.5 million units this fiscal," Bajaj said. Exports make up 35 per cent of total sales, he added. Bajaj pointed out that there are concerns, specifically in terms of domestic motorcycle market share. "Our market share is going to stay at 27 per cent for now, but as the Boxer catches on and as we introduce the new Pulsar in January, I certainly hope that we will gain market share. I hope for 30 per cent market share by the time we finish this year," he said. As to exports, he said Latin America and African markets will be the future growth drivers. Bajaj is present in Argentina, Columbia and Peru, and is looking at entering into Brazil. "Brazil is a very competitive market and we are looking at devising business model there," International Business Head Rakesh Sharma said. It is also eyeing Thailand and Vietnam, but has no plans to enter into the Chinese market due to intellectual property rights issues, Bajaj said. Bajaj received Rs 860 crore in August and is expected to get another Rs 240 crore in the next couple of days, out of Rs 1,100-crore outstanding VAT refunds, D'sa said. The Bajaj counter gained 1.72 per cent to Rs 1,641.30 on the BSE.

India Yamaha Motor sales up 27 in October

NEW DELHI: Two-wheeler maker India Yamaha Motor today reported 26.82 per cent increase in its total sales in October 2011 at 47,240 units. The company had sold 37,251 units in the same month last year, India Yamaha Motor said in a statement. In the domestic market, the company's sales stood at 38,229 units as against 31,791 units in the same month last year, up 20.25 per cent. Exports of India Yamaha rose by 65.04 per cent to 9,011 units during the month from 5,460 units in the year-ago period, it added. "The festive season has played a vital role in catapulting sales for Yamaha this month. We are confident that the momentum will sustain in the long run and help us in redefining our sales graph," India Yamaha Motor Director(Sales and Marketing) Jun Nakata said.

Honda Motorcycle & Scooter India sales zoom by 19.69% in Oct

NEW DELHI: Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) today reported 19.69 per cent jump in sales at 1,78,181 units in October. The company's total sales stood at 1,48,861 units in the corresponding month last year, HMSI said in a statement. Motorcycle sales grew by 4.64 per cent to 71,509 units in October 2011 as against 68,332 units in October 2010, it added. The company reported 32.46 per cent jump in scooter sales to 1,06,672 units in October compared to 80,529 units in the year-ago period.

Volkswagen India sales up 67% in October

NEW DELHI: Volkswagen today reported a 67.30 per cent year-on-year increase in its India sales to 7,266 units in October. The company had sold 4,343 units in the corresponding period last year, Volkswagen said in a statement. Compact car Polo and sedan Vento continue to be the backbone for the brand, with a total of 6,814 units sold in October, 2011, the company said. "Our action model strategy has once again proved to be very successful, with the Polo and the Vento Breeze being a huge attraction for customers during the festive season," Volkswagen Group Sales India Member of Board and Director, Volkswagen Passenger Cars, Neeraj Garg said.

Ford India sales up 12% in October

NEW DELHI: Car-maker Ford India today reported a 12.01 per cent increase in total sales during October to 10,906 units, mainly on account of higher exports. The company sold 9,737 units in the corresponding month last year, Ford India said in a statement. Ford's domestic sales declined by 10.36 per cent to 8,091 units in the reporting quarter from 9,026 units in the same month last year, it added. Its overseas shipments, however, rose nearly four-fold to 2,815 units in October this year from 711 units in the same month last year. "Exports are a strong part of our growth strategy. And it's wonderful to see the Chennai-made Figo winning hearts of customers in overseas markets too," Ford India President and Managing Director Michael Boneham said. During the January to October period this year, Ford sold 1,01,439 units, as against 77,324 units in the corresponding year-ago period, translating into a 31.19 per cent increase. "We are so proud that more than 1,00,000 customers in India have chosen to drive a high quality, fuel-efficient Ford vehicle. More customers in the first 10 months of this year have chosen Ford than the entire 12 months of 2010," he said. The company recently started work on its second plant in Gujarat, on which it will invest Rs 4,000 crore.