AGARTALA: State-owned ONGC is to set up a slew of projects in the nuclear, fertiliser, solar, wind power and lighting sectors, a top company official said Thursday.
A gas-fired fertiliser plant would be set up in Tripura, the solar projects in Rajasthan and Gujarat and the wind power project in Rajasthan, while the sites for the nuclear plant and a light-emitting diode (LED) manufacturing unit have yet to be finalised, Oil and Natural Gas Corporation (ONGC) chairman-cum-managing director Sudhir Vasudeva told reporters here
"After completion of the necessary procedures, we would soon decide on setting up the nuclear power plant and LED lamp manufacturing unit," he added.
"The nuclear power plant would be set up at a mutually agreed location in collaboration with Nuclear Power Corp of India Ltd (NPCIL). Talks with the NPCIL are at the formal stage."
"ONGC will ask (government-owned) PDIL (Projects and Development India Limited) to conduct a feasibility study on setting up the fertilizer plant in Tripura and to prepare a detail project report (DPR)," Vasudeva said.
He said ONGC has internally assessed that the Rs 5,000 crore urea unit in Tripura can be found with the natural gas the company has abundantly found in the state.
Vasudeva, accompanied by top company officials, arrived here Wednesday to review the progress on setting up a 726 MW power plant, its first such in India.
The Rs.4,000 crore combined cycle plant is in the process of being commissioned at Palatana in southern Tripura, 60 km south of here.
The electricity crisis in northeastern India is expected to ease with the setting up of the plant, which is expected to start generating power by May 2012.
Success in my Habit
Thursday, December 29, 2011
NTPC to invest Rs 18,346 crore in 2 projects
NEW DELHI: Country's top power producer NTPC Ltd will invest Rs 18,346 crore to develop two projects in Karnataka and Madhya Pradesh.
Company's board accorded investment approval to the projects totaling 2,900-mw electricity generation capacity, it said in a regulatory filing.
The proposal includes a new project of 2,400-mw capacity at Kudgi in Karnataka at an estimated cost of Rs 15,166 crore and a 500-mw expansion project at Vindhyachal, Madhya Pradesh at a cost of Rs 3,180 crore. NTPC, with a total generation capacity of 36,000-mw, already has 3,260-mw operational capacity at Vindhyachal.
Both projects are subject to environment clearance, the company said.
In a separate statement, NTPC said it entered into power supply commitment with Madhya Pradesh distribution utility for supply 50-mw from proposed solar plant at Rajgarh in the state. The project is expected to be commissioned by 2013.
Power from the Rajgarh solar project will be pooled with power from the company's coal based stations to lower costs, the company said.
Company's board accorded investment approval to the projects totaling 2,900-mw electricity generation capacity, it said in a regulatory filing.
The proposal includes a new project of 2,400-mw capacity at Kudgi in Karnataka at an estimated cost of Rs 15,166 crore and a 500-mw expansion project at Vindhyachal, Madhya Pradesh at a cost of Rs 3,180 crore. NTPC, with a total generation capacity of 36,000-mw, already has 3,260-mw operational capacity at Vindhyachal.
Both projects are subject to environment clearance, the company said.
In a separate statement, NTPC said it entered into power supply commitment with Madhya Pradesh distribution utility for supply 50-mw from proposed solar plant at Rajgarh in the state. The project is expected to be commissioned by 2013.
Power from the Rajgarh solar project will be pooled with power from the company's coal based stations to lower costs, the company said.
Pizza Hut launches new advertising-campaign to celebrate 15 years in India
Some interesting statistics to chew on - India is one of the fastest growing branded restaurants markets in the world, where the organised eating-out market is estimated at US $ 2 billion and growing at a CAGR of 25%.
In this space, Pizza Hut with its first-mover advantage is one of the largest casual dining chain brands spread across 130 plus outlets in 34 cities, which is projected to go up to 250 outlets by 2015. To celebrate the completion of its 15 years in India, the American restaurant chain is launching its new advertising-campaign.
The campaign has been conceptualised by JWT India and is a 2-film campaign to begin with, which would subsequently move to other mediums like digital, in-store as well.
Talking about the new campaign, Jaideep Mahajan, Vice President & Executive Creative Director JWT Delhi, "People who have been visiting the brand-outlets have also grown up over the ensuing 15 years, and this campaign traces their journey in a light-hearted and emotional manner. It reiterates how minor fights got resolved thanks to the irresistible taste of Pizza that they had/have here."
The execution of the films, he adds, is based on the premise of "My first pizza and the narration of the first pizza experience at the outlet and what got him there." The tonality and the mood of the communication have been kept very real right from the situations to the models used - for instance the parents in one of the TVCs played by the familiar Rajit Kapoor and Shernaz Patel or the boy-girl characters in the other TVC.
Elaborating on the 15 year long journey of the brand Sunay Bhasin, Marketing Head, Pizza Hut India says, "When we began our journey in India 15 years back, we were known for our Pizzas, garlic breads and masala lemonades. But the journey we embarked on to become an affordable casual dining restaurant, has driven us to diversify our offerings. Today on offer is a wide array of dishes to choose from, pastas, skewers, shakes, mojitos, salads, gelatos, cheesecakes, over and above pizzas that we known for."
The journey had started in 1996 when the brand had opened its first outlet in upmarket Bengaluru (then Bangalore). Though Bhasin is not ready to share specific details on what may be on offer in the coming year, he says, "As a brand, our aim is to strengthen our position in the affordable casual dining restaurant space."
In this space, Pizza Hut with its first-mover advantage is one of the largest casual dining chain brands spread across 130 plus outlets in 34 cities, which is projected to go up to 250 outlets by 2015. To celebrate the completion of its 15 years in India, the American restaurant chain is launching its new advertising-campaign.
The campaign has been conceptualised by JWT India and is a 2-film campaign to begin with, which would subsequently move to other mediums like digital, in-store as well.
Talking about the new campaign, Jaideep Mahajan, Vice President & Executive Creative Director JWT Delhi, "People who have been visiting the brand-outlets have also grown up over the ensuing 15 years, and this campaign traces their journey in a light-hearted and emotional manner. It reiterates how minor fights got resolved thanks to the irresistible taste of Pizza that they had/have here."
The execution of the films, he adds, is based on the premise of "My first pizza and the narration of the first pizza experience at the outlet and what got him there." The tonality and the mood of the communication have been kept very real right from the situations to the models used - for instance the parents in one of the TVCs played by the familiar Rajit Kapoor and Shernaz Patel or the boy-girl characters in the other TVC.
Elaborating on the 15 year long journey of the brand Sunay Bhasin, Marketing Head, Pizza Hut India says, "When we began our journey in India 15 years back, we were known for our Pizzas, garlic breads and masala lemonades. But the journey we embarked on to become an affordable casual dining restaurant, has driven us to diversify our offerings. Today on offer is a wide array of dishes to choose from, pastas, skewers, shakes, mojitos, salads, gelatos, cheesecakes, over and above pizzas that we known for."
The journey had started in 1996 when the brand had opened its first outlet in upmarket Bengaluru (then Bangalore). Though Bhasin is not ready to share specific details on what may be on offer in the coming year, he says, "As a brand, our aim is to strengthen our position in the affordable casual dining restaurant space."
Pizza Hut to open more stores that offer wine and beer
NEW DELHI: Encouraged by the popularity of its stores that serve not only pizzas but also wine and beer, restaurant chain Pizza Hut plans to open 25 more such joints across the country next year, a senior company official said.
"We are planning to open 25 stores in this particular format including in Mumbai. We have received tremendous response to this new format of our business," Sunay Bhasin, marketing head, Pizza Hut India, told media.
The company currently operates 10 such stores in Delhi, Bangalore, Agra and Puducherry.
"We have seen a growth of nearly 20-to-25 percent in this format. The expansion will also help us in diversifying our offering and adding a more value-added service," said Bhasin.
The company, which is celebrating 16 years of operation in India, also plans to take its casual dinning restaurant presence from 131 to 250 stores by 2015.
"Our plan is to have a presence of about 250 stores by 2015 from the current 131 stores that we have in 34 cities."
Bhasin added that the major thrust areas for expansion would be big cities with the standard franchise model.
About its menu offerings, the company said it would introduce 15 new pan pizzas which would incorporate Indian ingredients. The pizzas include sev puri, chettinadu paneer, chatpata veg masala, nimbu mirchi, and mushroom corn masala, among others.
All the pizzas would be priced from Rs.95 onwards at all Pizza Hut dine-ins.
"We are planning to open 25 stores in this particular format including in Mumbai. We have received tremendous response to this new format of our business," Sunay Bhasin, marketing head, Pizza Hut India, told media.
The company currently operates 10 such stores in Delhi, Bangalore, Agra and Puducherry.
"We have seen a growth of nearly 20-to-25 percent in this format. The expansion will also help us in diversifying our offering and adding a more value-added service," said Bhasin.
The company, which is celebrating 16 years of operation in India, also plans to take its casual dinning restaurant presence from 131 to 250 stores by 2015.
"Our plan is to have a presence of about 250 stores by 2015 from the current 131 stores that we have in 34 cities."
Bhasin added that the major thrust areas for expansion would be big cities with the standard franchise model.
About its menu offerings, the company said it would introduce 15 new pan pizzas which would incorporate Indian ingredients. The pizzas include sev puri, chettinadu paneer, chatpata veg masala, nimbu mirchi, and mushroom corn masala, among others.
All the pizzas would be priced from Rs.95 onwards at all Pizza Hut dine-ins.
India's broiler meat output up 10 pc: USDA report
NEW DELHI: Notwithstanding reports of four outbreaks of bird flu, India registered 10 per cent growth in boiler production this year to 2.9 million tonne, says a report.
The United States Department of Agriculture (USDA) has projected that the growth trend would continue in 2012, when production of broiler will reach 3.2 million tonne in India.
The consumption of poultry and egg will continue to grow as well and is expected to double by 2015, the report said.
Growth in broiler production was achieved despite reports of four incidents of outbreak of avian influenza, popularly known as bird flu in the Northeastern states, the report said.
Besides West Bengal, Assam and Tripura reported the flu this year. The government had notified the flu to the World Organisation for Animal Health (OIE), it said.
Poultry meat exports, however, did not see any change despite the growth in production as India consumes nearly all the poultry meat it produces.
The report estimates India's per capita consumption of poultry meat at around 3 kg per annum with chicken as the preferred non-vegetarian option.
India's per capita consumption of eggs is estimated at about 51 per annum.
The report identifies major drivers of consumption to an expanding middle class, increasing employment, rising incomes, new demand for ready-to-eat products and the growing presence of affordable quick-service restaurants.
Besides, there is a general preference for poultry meat over other options due to low prices as well as cultural and religious non-preference for pork and beef.
"While poultry and egg consumption are expected to grow in India, local dietary practices tend to prefer vegetarian protein sources even among non-vegetarian consumers. As a result it is unlikely that per capita consumption of meat and eggs will grow to levels seen in other countries," the USDA report said.
The United States Department of Agriculture (USDA) has projected that the growth trend would continue in 2012, when production of broiler will reach 3.2 million tonne in India.
The consumption of poultry and egg will continue to grow as well and is expected to double by 2015, the report said.
Growth in broiler production was achieved despite reports of four incidents of outbreak of avian influenza, popularly known as bird flu in the Northeastern states, the report said.
Besides West Bengal, Assam and Tripura reported the flu this year. The government had notified the flu to the World Organisation for Animal Health (OIE), it said.
Poultry meat exports, however, did not see any change despite the growth in production as India consumes nearly all the poultry meat it produces.
The report estimates India's per capita consumption of poultry meat at around 3 kg per annum with chicken as the preferred non-vegetarian option.
India's per capita consumption of eggs is estimated at about 51 per annum.
The report identifies major drivers of consumption to an expanding middle class, increasing employment, rising incomes, new demand for ready-to-eat products and the growing presence of affordable quick-service restaurants.
Besides, there is a general preference for poultry meat over other options due to low prices as well as cultural and religious non-preference for pork and beef.
"While poultry and egg consumption are expected to grow in India, local dietary practices tend to prefer vegetarian protein sources even among non-vegetarian consumers. As a result it is unlikely that per capita consumption of meat and eggs will grow to levels seen in other countries," the USDA report said.
Bengal entrepreneurs look at tea production as a source of income
The humble green leaf, the source of our daily morning cuppa, is changing the lives of many in towns of North Bengal. Forty-year old Dilip Das, for instance, a resident of Puratupara village of Jalpaiguri district of North Bengal, has shifted from his mud-thatched hut to a one-storied pucca house. A school dropout, Das had never dreamt of living in a pucca house even a few years ago till he took up tea production in his family-owned land sometime around 2008.
Today, he owns 8 acres of land and earns around Rs 35,000 per year from green leaf production. His two children go to school and he wants to give them good education. In Bahadurg ram village of Jalpaiguri, 42-year-old Ranjit Dutta, a primary school teacher at the local Jahuri school, has also taken up green leaf production as an "alternative source of income".
Dutta says that he is earning Rs 10,000 extra per month from it which is helping him repay the Rs 10 lakh housing loan he had taken last year. Das and Datta belong to the new breed of first-generation entrepreneurs in North Bengal who have taken up green leaf production to earn a living. There are 30,000 such small tea growers in that area whose total production is around 91 million kg, which is almost 32.5% of north Bengal's tea production of 280 million kg.
India's total tea production is 980 million kg. Interestingly, nearly 80% of these first-generation entrepreneurs have come from rural areas and 95% of them are Bengalis. "North Bengal University had carried out a survey of these growers and it was found that 95% of them have got basic education up to secondary level. Some are even graduates who have consciously entered into tea production to avoid unemployment. The age of these entrepreneurs ranges between 35 - 50 years," says Bijoy Gopal Chakroborty, president of Confederation of Indian Small Tea Growers Association (CISTA).
These growers are largely concentrated in north Dinajpur, Jalpaiguri, Coochbehar and at the foothills of Darjeeling. "In 2004, the total production of these tea growers was around 41 million kg which has now shot up to 91 million kg, and is going up every day as more and more people are joining the green leaf cultivation."
The reason for this sudden spurt in numbers is largely due to appreciation in tea prices year-on-year basis. Says Sarat Roy, a small tea grower in Coochbehar district: "We sell green leaves to bought-leaf factories which process and sell them to big companies. Sometimes, we sell them to big tea companies like Goodricke, Jay Shree Tea and others directly. Green leaf price, says an estimate, has appreciated by 10%-15% over the past four years."
Incidentally, bought-leaf factories are units that buy these leaves and convert them into the tea we drink. Generally, 6000 tea bushes can be planted in an acre of plot. These 6,000 bushes can produce 10,000 kg of green leaf. The cost of production varies between Rs 8.50-Rs 10.50 per kg. The producer gets Rs 13.50 per kg.
"So his net earning is Rs 3 per kg. The more he produces, the more is his return," says Mr Chakroborty. These growers are now forming self help groups and later co-operative societies to set up their own bought-leaf factories to ensure higher price for their produce.
Today, he owns 8 acres of land and earns around Rs 35,000 per year from green leaf production. His two children go to school and he wants to give them good education. In Bahadurg ram village of Jalpaiguri, 42-year-old Ranjit Dutta, a primary school teacher at the local Jahuri school, has also taken up green leaf production as an "alternative source of income".
Dutta says that he is earning Rs 10,000 extra per month from it which is helping him repay the Rs 10 lakh housing loan he had taken last year. Das and Datta belong to the new breed of first-generation entrepreneurs in North Bengal who have taken up green leaf production to earn a living. There are 30,000 such small tea growers in that area whose total production is around 91 million kg, which is almost 32.5% of north Bengal's tea production of 280 million kg.
India's total tea production is 980 million kg. Interestingly, nearly 80% of these first-generation entrepreneurs have come from rural areas and 95% of them are Bengalis. "North Bengal University had carried out a survey of these growers and it was found that 95% of them have got basic education up to secondary level. Some are even graduates who have consciously entered into tea production to avoid unemployment. The age of these entrepreneurs ranges between 35 - 50 years," says Bijoy Gopal Chakroborty, president of Confederation of Indian Small Tea Growers Association (CISTA).
These growers are largely concentrated in north Dinajpur, Jalpaiguri, Coochbehar and at the foothills of Darjeeling. "In 2004, the total production of these tea growers was around 41 million kg which has now shot up to 91 million kg, and is going up every day as more and more people are joining the green leaf cultivation."
The reason for this sudden spurt in numbers is largely due to appreciation in tea prices year-on-year basis. Says Sarat Roy, a small tea grower in Coochbehar district: "We sell green leaves to bought-leaf factories which process and sell them to big companies. Sometimes, we sell them to big tea companies like Goodricke, Jay Shree Tea and others directly. Green leaf price, says an estimate, has appreciated by 10%-15% over the past four years."
Incidentally, bought-leaf factories are units that buy these leaves and convert them into the tea we drink. Generally, 6000 tea bushes can be planted in an acre of plot. These 6,000 bushes can produce 10,000 kg of green leaf. The cost of production varies between Rs 8.50-Rs 10.50 per kg. The producer gets Rs 13.50 per kg.
"So his net earning is Rs 3 per kg. The more he produces, the more is his return," says Mr Chakroborty. These growers are now forming self help groups and later co-operative societies to set up their own bought-leaf factories to ensure higher price for their produce.
Smaller jewellers, excise dept fight over 'branded jewellery'
AHMEDABAD: Smaller jewellers and the excise department are at loggerheads over the interpretation of an announcement made in Budget 2011.
The unorganised sector commands 90% of the jewellery market in India. An excise duty of 1% was imposed on jewellery (of gold, silver, platinum, palladium, rhodium, iridium, osmium or ruthenium) manufactured or sold under a brand name during this year's budget.
Family jewellers and regional players say they don't fall into the category of branded players. With the Central Board of Excise and Customs sending notices to jewellers especially across Gujarat and Maharashtra, jewellers are looking at legal options. A Surat-based family jeweller who didn't want to named said, "It is a major concern... with notices being sent in the past few days. They have told us that if we put any mark or sell in a jewellery box or pouch or bag containing shop name, then they will consider it as branded."
Jewellers rued that this move was in stark contrast to an earlier move by government to ensure jewellers register their companies and make only hallmarked jewellery.
"The government tried to implement such a policy in 2005-06 but discontinued it, thereby promoting regional family jewellers. We intend to start an agitation, after taking a legal opinion," he said. An excise department official in Ahmedabad said, "the process of sending notification has begun and we are asking them details like how much branded jewellery are they selling and in which segment?"
Jewellers who are maintaining websites, giving regular advertisements, making stylised initial marks similar to the company logo on their jewellery are being sent the notices, he added. Ahmedabad-based Zaveri & Co jewellers director Zaveribhai Zaveri said jewellers were concerned.
"At this stage, we don't know if we have to pay the 1% excise duty as we are not branded jewellers but family jewellers. Incidences of family jewellers being asked to pay the excise duty have been reported in other states too," he said.
But Gem and Jewellery Export Promotion Council vice-chairman Sanjay Kothari said the issue had been discussed earlier with the authorities and it had been made clear that family jewellers were not part of the branded segment.
The unorganised sector commands 90% of the jewellery market in India. An excise duty of 1% was imposed on jewellery (of gold, silver, platinum, palladium, rhodium, iridium, osmium or ruthenium) manufactured or sold under a brand name during this year's budget.
Family jewellers and regional players say they don't fall into the category of branded players. With the Central Board of Excise and Customs sending notices to jewellers especially across Gujarat and Maharashtra, jewellers are looking at legal options. A Surat-based family jeweller who didn't want to named said, "It is a major concern... with notices being sent in the past few days. They have told us that if we put any mark or sell in a jewellery box or pouch or bag containing shop name, then they will consider it as branded."
Jewellers rued that this move was in stark contrast to an earlier move by government to ensure jewellers register their companies and make only hallmarked jewellery.
"The government tried to implement such a policy in 2005-06 but discontinued it, thereby promoting regional family jewellers. We intend to start an agitation, after taking a legal opinion," he said. An excise department official in Ahmedabad said, "the process of sending notification has begun and we are asking them details like how much branded jewellery are they selling and in which segment?"
Jewellers who are maintaining websites, giving regular advertisements, making stylised initial marks similar to the company logo on their jewellery are being sent the notices, he added. Ahmedabad-based Zaveri & Co jewellers director Zaveribhai Zaveri said jewellers were concerned.
"At this stage, we don't know if we have to pay the 1% excise duty as we are not branded jewellers but family jewellers. Incidences of family jewellers being asked to pay the excise duty have been reported in other states too," he said.
But Gem and Jewellery Export Promotion Council vice-chairman Sanjay Kothari said the issue had been discussed earlier with the authorities and it had been made clear that family jewellers were not part of the branded segment.
Blue Star wins Rs 84 cr order from Bangalore Metro
MUMBAI: Central air conditioning major Blue Star today said it has won orders worth Rs 84 crore from the Bangalore Metro for environmental control system and building management system for the seven underground stations.
This work for phase-I of the Bangalore Metro includes design, supply, installation, testing and commissioning of chillers, pumps, air handling units, fan coil units, cooling towers, ventilation fans, motor control centre panels and building management system along with the associated work of piping, ducting, grilles and insulation, amongst others, Blue Star said in a release issued here.
The Bangalore Metro Rail Corporation, a joint venture between Karnataka and the Centre, is a special purpose vehicle for implementation of Bangalore Metro.
This project, known as Namma Metro, will weave through the commercial and residential areas of the city. Phase-1 consists of double line electrified north-south and east-west corridors covering 42.30 km.
The east-west corridor will be 18.10 km long and the north-south corridor will be 24.20 km, with Majestic station being the interchange station for the two corridors. Out of the 42.30 km., 8.82 km will be underground and the rest will be elevated.
Blue Star's expertise and competence in project execution coupled with the execution of several projects for the Delhi Metro over the past several years helped the company win this order.
This work for phase-I of the Bangalore Metro includes design, supply, installation, testing and commissioning of chillers, pumps, air handling units, fan coil units, cooling towers, ventilation fans, motor control centre panels and building management system along with the associated work of piping, ducting, grilles and insulation, amongst others, Blue Star said in a release issued here.
The Bangalore Metro Rail Corporation, a joint venture between Karnataka and the Centre, is a special purpose vehicle for implementation of Bangalore Metro.
This project, known as Namma Metro, will weave through the commercial and residential areas of the city. Phase-1 consists of double line electrified north-south and east-west corridors covering 42.30 km.
The east-west corridor will be 18.10 km long and the north-south corridor will be 24.20 km, with Majestic station being the interchange station for the two corridors. Out of the 42.30 km., 8.82 km will be underground and the rest will be elevated.
Blue Star's expertise and competence in project execution coupled with the execution of several projects for the Delhi Metro over the past several years helped the company win this order.
Durables companies hit as A/C sales dip, input costs rise in 2011
NEW DELHI: While consumers enjoyed a pleasant summer in 2011, it was bad weather for the durables industry as a slump in air-conditioner sales compounded their woes in a year in which the sector had to struggle to cope with high input costs and a weakened rupee.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the estimated Rs 35,000 crore Indian consumer durables market, which has giants like LG, Sony, Videocon, Samsung and Panasonic, did not grow as expected, with air-conditioners being the biggest spoilsport.
"There was minimum growth. We expected that the consumer durables market will grow at around 15 per cent this year, but it grew by only 8-9 per cent," CEAMA President and Videocon Director Anirudh Dhoot told PTI.
He said because of "high interest rates and trouble in the economy, consumer sentiments were down, though they picked up later, especially during the festive season".
Expressing similar sentiments, the President and CEO of Samsung India Electronics, Jung Soo Shin, said the year has been a challenging one because of the foreign exchange rate situation and high commodity prices, though the firm continued to bring in new and innovative products during the period.
"For the overall industry, it is little bit tough and challenging. The air-conditioner business was a quiet one because of the weather conditions, but home appliances and televisions have shown a good growth. There was a fast transition from CRTVs to flat panels," Shin said.
In terms of value, the air-conditioner segment is estimated to be worth around Rs 7,500 crore, accounting for about 21.4 per cent of the overall consumer durables business in India.
At present, the air-conditioner market is currently estimated to be around 3.4 million units in volume terms, while the television segment stands at 17.5 million units, of which LCDs contribute around 4.5 million units.
To offset high input costs and the depreciating rupee, leading companies -- including LG, Samsung and Videocon -- hiked prices by up to 6 per cent across their products range during the year. However, the firms said the hikes were not enough and they are looking at a further hike in the near future.
"Nobody expected that the US dollar will rise in such a way and it is one of the biggest factors in raising our cost," LG Electronics India Business Head (Home Appliances) Rajeev Jain had said.
Appreciation of the US dollar against the rupee has put an additional burden on the company, as 40 per cent of its home appliances are imported from different plants located in China, Korea and Thailand, he added.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the estimated Rs 35,000 crore Indian consumer durables market, which has giants like LG, Sony, Videocon, Samsung and Panasonic, did not grow as expected, with air-conditioners being the biggest spoilsport.
"There was minimum growth. We expected that the consumer durables market will grow at around 15 per cent this year, but it grew by only 8-9 per cent," CEAMA President and Videocon Director Anirudh Dhoot told PTI.
He said because of "high interest rates and trouble in the economy, consumer sentiments were down, though they picked up later, especially during the festive season".
Expressing similar sentiments, the President and CEO of Samsung India Electronics, Jung Soo Shin, said the year has been a challenging one because of the foreign exchange rate situation and high commodity prices, though the firm continued to bring in new and innovative products during the period.
"For the overall industry, it is little bit tough and challenging. The air-conditioner business was a quiet one because of the weather conditions, but home appliances and televisions have shown a good growth. There was a fast transition from CRTVs to flat panels," Shin said.
In terms of value, the air-conditioner segment is estimated to be worth around Rs 7,500 crore, accounting for about 21.4 per cent of the overall consumer durables business in India.
At present, the air-conditioner market is currently estimated to be around 3.4 million units in volume terms, while the television segment stands at 17.5 million units, of which LCDs contribute around 4.5 million units.
To offset high input costs and the depreciating rupee, leading companies -- including LG, Samsung and Videocon -- hiked prices by up to 6 per cent across their products range during the year. However, the firms said the hikes were not enough and they are looking at a further hike in the near future.
"Nobody expected that the US dollar will rise in such a way and it is one of the biggest factors in raising our cost," LG Electronics India Business Head (Home Appliances) Rajeev Jain had said.
Appreciation of the US dollar against the rupee has put an additional burden on the company, as 40 per cent of its home appliances are imported from different plants located in China, Korea and Thailand, he added.
Oman Investment Fund seeks government nod for UCX stake buy
MUMBAI: Oman Investment Fund (OIF), the Sultanate of Oman's sovereign wealth fund, has filed a fresh application with the government to buy a stake in Universal Commodity Exchange (UCX), promoted by software solutions company, IT People, a person close to the development said.
"The fresh proposal made by Funderburk 2 Mauritius , an OIF arm, relates to UCX," said the person, who did not wish to be named A single foreign entity can invest up to 5% in a commex. Funderburk Mauritius 2's investment proposal was slated for discussion last Friday by Foreign Investment Promotion Board (FIPB), which approves foreign direct investments into the country. A senior government official said the FIPB's decision will be known soon.
An OIF official acquainted with the matter was on vacation while Ketan Sheth, promoter of UCX, said he did not wish to comment.
OIF was earlier in talks with NSE to pick up half of its 10% holding in agri bourse NCDEX but these remained inconclusive till September-end, the deadline for divesting its excess stake. A stock exchange can hold maximum 5% stake in a commex. Government norms allow up to 49% foreign investment -- 26% FDI and 23% FII --in commexes subject to a 5% cap per investor. Fidelity is one of the foreign stakeholders in MCX, while Goldman Sachs, InterContinental Exchange and Crisil, a part of Standard and Poor's, hold small stakes in NCDEX.
UCX promoters had an August deadline for tying up Rs 100-crore equity capital, a year after receiving the government's in-principle approval to start operations. They sought an extension for roping in government
"The fresh proposal made by Funderburk 2 Mauritius , an OIF arm, relates to UCX," said the person, who did not wish to be named A single foreign entity can invest up to 5% in a commex. Funderburk Mauritius 2's investment proposal was slated for discussion last Friday by Foreign Investment Promotion Board (FIPB), which approves foreign direct investments into the country. A senior government official said the FIPB's decision will be known soon.
An OIF official acquainted with the matter was on vacation while Ketan Sheth, promoter of UCX, said he did not wish to comment.
OIF was earlier in talks with NSE to pick up half of its 10% holding in agri bourse NCDEX but these remained inconclusive till September-end, the deadline for divesting its excess stake. A stock exchange can hold maximum 5% stake in a commex. Government norms allow up to 49% foreign investment -- 26% FDI and 23% FII --in commexes subject to a 5% cap per investor. Fidelity is one of the foreign stakeholders in MCX, while Goldman Sachs, InterContinental Exchange and Crisil, a part of Standard and Poor's, hold small stakes in NCDEX.
UCX promoters had an August deadline for tying up Rs 100-crore equity capital, a year after receiving the government's in-principle approval to start operations. They sought an extension for roping in government
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