NEW DELHI: Leading public schools in Delhi are likely to earn a revenue of over Rs 1,200 crore through the sale of nursery admission forms this year, industry body Assocham said in a report today.
Last year, the schools earned Rs 1,000 crore from the sale of nursery admission forms, it said.
"Parents these days maintain a budget of about Rs 15,000-20,000 only for applying in leading schools," the report, titled, 'Nursery Admission: Nightmare for parents?', said.
Nursery admission have become an anxiety-ridden experience for parents seeking to secure a seat for their tiny tots in reputed pubic schools due to the limited number of days for sale of admission forms, Assocham Secretary General D S Rawat said.
There are over 3,000 public schools in Delhi that normally sell prospectuses containing details about admission processes in their respective schools for a sum of Rs 800-1,000.
"The cost of a prospectus for nursery admission in metro centres has spiked by nearly ten times during the course of the past decade," it said, adding that the price of a prospectus for nurseries and KGs is costlier than that of Delhi University, the IIMs, IICA and IICS.
Parents are bound to buy the prospectus as these contain important details about the admission procedure along with the admission forms, it added.
"The soaring price of admission forms in most of private schools in metros has disturbed the budget of even well-to-do families. Education is being run like a commercial business enterprise these days," Rawat said.
Success in my Habit
Wednesday, January 4, 2012
IRB Infrastructure to seek Rs 70 crore compensation from NHAI
MUMBAI: IRB Infrastructure Developers plans to claim a compensation of around Rs 60-70 crore from the National Highway Authority of India for terminating its contract for a Goa road project after the latter could not acquire land for it.
Road projects have faced delays due to issues relating to land acquisition, environmental clearances and right of way but this is only the second instance in the last two years where a project has been cancelled due to NHAI's inability to acquire land.
"We haven't yet received a compensation claim from IRB. But if this happens, it would be the first time where a developer seeks compensation for a project cancelled due to land acquisition problem. We will have to examine our liability in the case," a senior NHAI official told ET.
On December 23, IRB said that NHAI has cancelled the Goa road project that it had won in January 2010. Although IRB had written off the project from its order book in the quarter ended September in view of the inordinate delay in the project, the cancellation news had a negative impact on the shares of the company.
IRB shares have shed almost 10% on the Bombay Stock Exchange since the announcement as against a 1.4% decline in the benchmark index Sensex in the same period. Analysts said that the news of a compensation would only be a minor relief for the investors.
"The contract allows us to claim 150% of the equity investment of Rs 34 crore in the project. We may also claim compensation for the Rs 10-15 crore we spent on the financial closure and other work related to the project," IRB's Chief Financial Officer Anil Yadav said.
IRB had formed a special purpose vehicle, IRB Goa Tollway Pvt, to execute the project, which will claim the compensation for the project which entailed four-laning of the Panaji- Goa stretch of Goa -Karnataka Border road. At the time of winning the project, the company had said that it would cost Rs 800 crore, of which Rs 186.30 crore would be the grant from government.
Typically, at the time of awarding a project NHAI owns almost 80% of the land required for it while it acquires the balance within six months. According to NHAI, land acquisition has been most difficult in Goa, Kerala and West Bengal.
Road projects have faced delays due to issues relating to land acquisition, environmental clearances and right of way but this is only the second instance in the last two years where a project has been cancelled due to NHAI's inability to acquire land.
"We haven't yet received a compensation claim from IRB. But if this happens, it would be the first time where a developer seeks compensation for a project cancelled due to land acquisition problem. We will have to examine our liability in the case," a senior NHAI official told ET.
On December 23, IRB said that NHAI has cancelled the Goa road project that it had won in January 2010. Although IRB had written off the project from its order book in the quarter ended September in view of the inordinate delay in the project, the cancellation news had a negative impact on the shares of the company.
IRB shares have shed almost 10% on the Bombay Stock Exchange since the announcement as against a 1.4% decline in the benchmark index Sensex in the same period. Analysts said that the news of a compensation would only be a minor relief for the investors.
"The contract allows us to claim 150% of the equity investment of Rs 34 crore in the project. We may also claim compensation for the Rs 10-15 crore we spent on the financial closure and other work related to the project," IRB's Chief Financial Officer Anil Yadav said.
IRB had formed a special purpose vehicle, IRB Goa Tollway Pvt, to execute the project, which will claim the compensation for the project which entailed four-laning of the Panaji- Goa stretch of Goa -Karnataka Border road. At the time of winning the project, the company had said that it would cost Rs 800 crore, of which Rs 186.30 crore would be the grant from government.
Typically, at the time of awarding a project NHAI owns almost 80% of the land required for it while it acquires the balance within six months. According to NHAI, land acquisition has been most difficult in Goa, Kerala and West Bengal.
L&T Construction bags orders worth Rs 2,056 cr
NEW DELHI: L&T Construction today said it has bagged new projects worth Rs 2,056 crore across various categories in the last month.
Of these projects, two orders worth Rs 1,262 crore in the water and effluent treatment segment was bagged by the company, L&T Construction said in a statement.
"One order has been secured from the Tamil Nadu Water Supply and Drainage Board for combined water supply scheme at various locations in Madurai, Sivagangai and Vellore districts in Tamil Nadu," it said.
Another order was received from Raipur Vikas Pradhikaran by the firm for constructing water pipelines, water supply and other associated works at Raipur, it added.
In the buildings and factories category, a Rs 388-crore project was bagged by L&T Construction for constructing residential towers.
"In the rail infrastructure segment, new orders, including additional orders aggregating Rs 406 crore has been grabbed form various clients. This include a major order for construction of a viaduct...from Rail Vikas Nigam Ltd," the statement said.
Of these projects, two orders worth Rs 1,262 crore in the water and effluent treatment segment was bagged by the company, L&T Construction said in a statement.
"One order has been secured from the Tamil Nadu Water Supply and Drainage Board for combined water supply scheme at various locations in Madurai, Sivagangai and Vellore districts in Tamil Nadu," it said.
Another order was received from Raipur Vikas Pradhikaran by the firm for constructing water pipelines, water supply and other associated works at Raipur, it added.
In the buildings and factories category, a Rs 388-crore project was bagged by L&T Construction for constructing residential towers.
"In the rail infrastructure segment, new orders, including additional orders aggregating Rs 406 crore has been grabbed form various clients. This include a major order for construction of a viaduct...from Rail Vikas Nigam Ltd," the statement said.
GMR may team up with Brazilian construction company Queiroz Galvao for Sao Paulo airport bid
GMR may rope in Brazilian construction giant Queiroz Galvao as a partner to bolster its bid to carry out airport modernization projects at some of Brazil's busiest airports, two people directly familiar with the company's bidding plans said.
Queiroz Galvao is one of the largest privately held construction conglomerates in Brazil and had revenues of over $4 billion in 2010 as per details available in the company's annual report. The company also has operations in the areas of real estate development and oil and gas exploration.
GMR may finally bid only for the Guarulhos airport expansion project at Sao Paulo as it is the most lucrative and busiest airport in Brazil, according to one of the people quoted above. The projected capex for the airport modernization project at Guarulhos alone could be close to $8 billion, according to the same person. Brazil's government will also auction off concessions at Viracopos airport in Sao Paulo and the airport in the capital city of Brasilia to bidders selected through an auction process.
GMR has also been in talks with other large Latin American construction companies and will look to finalize a partner within the next two weeks. The company had earlier decided to bid for the projects alone but now believes that a partner with local market knowledge and experience will help it strengthen its proposed bid and also bring in much needed capital as project costs run into billions of dollars and bidding is likely to be very competitive. The company is also in talks to put together a consortium of banks to fund its bid.
The deadline for submitting technical and financial bids for the airport projects has been set at 30th January.
Brazil's government has put in place a plan to modernize airports ahead of the 2014 soccer World Cup and 2016 Olympics that it will host at Rio de Janeiro. Domestic air traffic in Brazil has been growing at double digit rates and airports are frequently overcrowded making the expansion drive necessary to cope with the projected increase in passenger traffic due to these mega sporting events.
A spokesperson for GMR did not respond to emailed queries. Queiroz Galvao could not be reached for comment.
Other large global airport operators including Aeroports de Paris (ADP) which manages the Charles de Gaulle international airport in Paris as well as big investors such as Brazilian billionaire Eike Batista are expected to participate in the auction being conducted for the award of the airport concessions.
Brazil's aviation authority put out stringent conditions for bidders interested in carrying out expansion projects at the airports in October last year. One of such conditions is that Brazil's state-owned airports company Infraero will own 49% of the capital stock of any joint venture that eventually gains the right to re-develop and operate the airports. The conditions also provide Infraero veto rights over "strategic and relevant issues" despite being a minority partner in the proposed joint ventures that will be awarded concessions.
Queiroz Galvao is one of the largest privately held construction conglomerates in Brazil and had revenues of over $4 billion in 2010 as per details available in the company's annual report. The company also has operations in the areas of real estate development and oil and gas exploration.
GMR may finally bid only for the Guarulhos airport expansion project at Sao Paulo as it is the most lucrative and busiest airport in Brazil, according to one of the people quoted above. The projected capex for the airport modernization project at Guarulhos alone could be close to $8 billion, according to the same person. Brazil's government will also auction off concessions at Viracopos airport in Sao Paulo and the airport in the capital city of Brasilia to bidders selected through an auction process.
GMR has also been in talks with other large Latin American construction companies and will look to finalize a partner within the next two weeks. The company had earlier decided to bid for the projects alone but now believes that a partner with local market knowledge and experience will help it strengthen its proposed bid and also bring in much needed capital as project costs run into billions of dollars and bidding is likely to be very competitive. The company is also in talks to put together a consortium of banks to fund its bid.
The deadline for submitting technical and financial bids for the airport projects has been set at 30th January.
Brazil's government has put in place a plan to modernize airports ahead of the 2014 soccer World Cup and 2016 Olympics that it will host at Rio de Janeiro. Domestic air traffic in Brazil has been growing at double digit rates and airports are frequently overcrowded making the expansion drive necessary to cope with the projected increase in passenger traffic due to these mega sporting events.
A spokesperson for GMR did not respond to emailed queries. Queiroz Galvao could not be reached for comment.
Other large global airport operators including Aeroports de Paris (ADP) which manages the Charles de Gaulle international airport in Paris as well as big investors such as Brazilian billionaire Eike Batista are expected to participate in the auction being conducted for the award of the airport concessions.
Brazil's aviation authority put out stringent conditions for bidders interested in carrying out expansion projects at the airports in October last year. One of such conditions is that Brazil's state-owned airports company Infraero will own 49% of the capital stock of any joint venture that eventually gains the right to re-develop and operate the airports. The conditions also provide Infraero veto rights over "strategic and relevant issues" despite being a minority partner in the proposed joint ventures that will be awarded concessions.
Chinese manufacturers "faking" products of Dabur, ITC; undermining the legitimacy of brands
NEW DELHI: Chinese manufacturers are increasingly "faking" popular Indian products of consumer goods giants such as Dabur and ITC, undermining the legitimacy of brands and causing losses worth as much as $5 billion annually, officials said.
"A lot of counterfeit Dabur products are made in China. We have conducted at least 20 raids in China but no proper action has been taken by the Chinese," said Ashok Jain, general manager of finance at Dabur India, the country's fourth-largest FMCG firm. He said such fake products manufactured in China with "Made-in-India" tag are supplied across the world, mostly in India and African countries.
"It causes huge damage to the brand. Those fake products are obviously not up to our standards and supplied at very low prices," Jain told media.
Dabur, which has nearly $4 billion market capitalisation, operates in key consumer product categories like healthcare, skin care, hair care and oral care. The company's revenue last fiscal was $910 million.
Pradeep Dixit, a senior official of ITC, a $33-billion conglomerate, said the popular FMCG brands of the company were counterfeited by unscrupulous firms and supplied in domestic as well as foreign markets.
"Our popular cigarette brand is faked and supplied widely in the states like Chhattisgarh, Bihar and Uttar Pradesh," he said.
"China is a big problem everybody is facing," said S.K. Goel, chairman of the Central Board of Excise and Customs, told IANS. Goel said the big international brands like Nokia, Adidas, Reebok and Nivea were also widely counterfeited in China and supplied in India and other parts of the world. Chinese manufacturers are also faking drugs, endangering lives of patients.
Fake drugs, carrying "Made in India" tags, supplied from China were recently detained in Nigeria and other African countries.
KK Vyas, Delhi's deputy commissioner of police (crime), said the police have seized and confiscated a lot of fake and counterfeited products of popular brands in the national capital recently. Vyas emphasised on the need for enhancing punishment for unscrupulous manufacturers and importers. "Punishment needs to be enhanced. Also there is need that judiciary addresses these issues quickly."
"Counterfeiting is a big menace. It is hurting everybody - consumers, industry and the exchequer," said Anil Rajput, chairman of the anti-smuggling and anti-counterfeiting committee of Federation of Indian Chambers of Commerce and Industry (FICCI).
Recently, FICCI formed a panel called "FICCI-Cascade" that expands into a committee on anti-smuggling and counterfeiting activities destroying the economy.
According to a report by think tank Indiaforensic Research Foundation, the total loss to the economy annually due to crimes such as counterfeiting, commercial fraud, smuggling, drug trafficking, bank fraud, tax evasion and graft is estimated at Rs 22,528 crore.
"A lot of counterfeit Dabur products are made in China. We have conducted at least 20 raids in China but no proper action has been taken by the Chinese," said Ashok Jain, general manager of finance at Dabur India, the country's fourth-largest FMCG firm. He said such fake products manufactured in China with "Made-in-India" tag are supplied across the world, mostly in India and African countries.
"It causes huge damage to the brand. Those fake products are obviously not up to our standards and supplied at very low prices," Jain told media.
Dabur, which has nearly $4 billion market capitalisation, operates in key consumer product categories like healthcare, skin care, hair care and oral care. The company's revenue last fiscal was $910 million.
Pradeep Dixit, a senior official of ITC, a $33-billion conglomerate, said the popular FMCG brands of the company were counterfeited by unscrupulous firms and supplied in domestic as well as foreign markets.
"Our popular cigarette brand is faked and supplied widely in the states like Chhattisgarh, Bihar and Uttar Pradesh," he said.
"China is a big problem everybody is facing," said S.K. Goel, chairman of the Central Board of Excise and Customs, told IANS. Goel said the big international brands like Nokia, Adidas, Reebok and Nivea were also widely counterfeited in China and supplied in India and other parts of the world. Chinese manufacturers are also faking drugs, endangering lives of patients.
Fake drugs, carrying "Made in India" tags, supplied from China were recently detained in Nigeria and other African countries.
KK Vyas, Delhi's deputy commissioner of police (crime), said the police have seized and confiscated a lot of fake and counterfeited products of popular brands in the national capital recently. Vyas emphasised on the need for enhancing punishment for unscrupulous manufacturers and importers. "Punishment needs to be enhanced. Also there is need that judiciary addresses these issues quickly."
"Counterfeiting is a big menace. It is hurting everybody - consumers, industry and the exchequer," said Anil Rajput, chairman of the anti-smuggling and anti-counterfeiting committee of Federation of Indian Chambers of Commerce and Industry (FICCI).
Recently, FICCI formed a panel called "FICCI-Cascade" that expands into a committee on anti-smuggling and counterfeiting activities destroying the economy.
According to a report by think tank Indiaforensic Research Foundation, the total loss to the economy annually due to crimes such as counterfeiting, commercial fraud, smuggling, drug trafficking, bank fraud, tax evasion and graft is estimated at Rs 22,528 crore.
Government working on savings banks account number portability
Financial services secretary, DK Mittal has said that the government is working on savings banks account number portability. This comes at a time when the central bank, Reserve Bank of India has favoured looking into the matter once every account holder has a number issued by the Unique Identification Authority of India or UIDAI.
Mittal, however, said that banks would have to work on identification code, know your customers (KYC) norms and core banking solution ( CBS) for implementing the savings bank account number portability.
"We want to do it (savings a/c number portability). Right now there are some technical problems...we have identified them. We will overcome them soon," he said.
Earlier RBI's deputy governor KC Chakrabarty had also said that account number portability remains a challenge in terms of technology..
The move would help customers change banks, without the need of going through the KYC norms again.
As of now there is no country which offers complete bank account number portability, though rudimentary form is available in some European countries such as Sweden.
On the issue of capital infusion in state run banks, Mittal said that capital infusion in PSU banks would be completed by the end of this fiscal. "We will complete the process of bank recapitalisation by March 31," he said. the government has made budget provision of Rs 6,000 crore for capital infusion in PSU banks in the current fiscal.
Mittal, however, said that banks would have to work on identification code, know your customers (KYC) norms and core banking solution ( CBS) for implementing the savings bank account number portability.
"We want to do it (savings a/c number portability). Right now there are some technical problems...we have identified them. We will overcome them soon," he said.
Earlier RBI's deputy governor KC Chakrabarty had also said that account number portability remains a challenge in terms of technology..
The move would help customers change banks, without the need of going through the KYC norms again.
As of now there is no country which offers complete bank account number portability, though rudimentary form is available in some European countries such as Sweden.
On the issue of capital infusion in state run banks, Mittal said that capital infusion in PSU banks would be completed by the end of this fiscal. "We will complete the process of bank recapitalisation by March 31," he said. the government has made budget provision of Rs 6,000 crore for capital infusion in PSU banks in the current fiscal.
Solar ATMs fuel rural revolution in India
EW DELHI: An Indian start-up is catalysing a quiet revolution by designing, developing and installing unique solar-powered ATMs in rural areas.
The initial lot of 400 solar ATMs, aptly called Gramateller ('gram' means village), the world's largest order, placed by the State Bank of India ( SBI), has been winning accolades for performance and substantial energy savings.
The ATMs were installed in 2010-11 across several states, usually within 20-50 km of the district headquarters, Vijay Babu, CEO of Vortex Engineering, which makes these units, told IANS from Chennai.
Following SBI's success with solar ATMs, the Catholic Syrian Bank also placed an order for 50 Gramatellers and Indian Bank for 20, while 10 more have been ordered by other banks, he added.
Both Babu and Lakshminarayan Kannan, who founded Vortex, are the alumni of the Indian Institute of Technology-Madras (IIT-M) and the brains behind the Gramateller.
"Our plans to operate ATMs on solar power were greeted with utter disbelief. We faced challenges initially in getting them adopted by our end users, the rural folks, who are not particularly tech-savvy. But once they realised that they were getting control of their own money, they accepted it wholeheartedly," said Babu.
"The workload has increased with more and more people using these facilities which, in most cases, are the only ATMs within 20 km or more, thanks to the solar power backup," added Babu.
The two entrepreneurs took up the project in 2004-05 at IIT-M's suggestion, developing and fine-tuning the product until it became commercially viable in 2008-09.
The IIT-M, which had been initially approached by the banks to develop a robust rural alternative to the existing ATMs, passed on the proposal to Vortex. Babu and Kannan have since inked a royalty agreement with their alma mater.
"Conventional ATMs may not be viable in areas subject to 8 to 10 hours of power cuts, given their dependence on gensets and air-conditioning. But thanks to the rural Gramateller, villagers don't have to undertake time-consuming trips to cities or towns for money," said Kannan.
Vortex is the only Indian company making it to the Time magazine 2011 list of "10 start-ups that will change your life", selected out of 31 companies honoured as "Technology Pioneers" by the World Economic Forum.
Vortex was recently selected as the latest entrant to Business Call to Action (BCtA), a global initiative that encourages private sector efforts to fight poverty, supported by the UN Development Programme, among others.
"The 'no frills' Gramateller has a 12-hour power back-up, provided there is good sunlight at least for five hours daily. Solar panels convert these rays into electrical energy, storing them in a battery. A single unit saves more than 90 per cent of the yearly expenditure incurred on operating an ATM, which works out to Rs.1.44 lakh, half of the amount being accounted by air-conditioning," said Sabarinath Nair, marketing manager, Vortex.
Gramateller comes with a biometric touch pad to prevent fraud and tell villagers that their money is safe. It can also dispense soiled notes in the interiors where crisp currency notes are suspected of being fakes, Nair said
Regular ATMs were priced between Rs.3.5-5 lakh apiece. They needed another Rs.60,000 and Rs.80,000 for the UPS and AC. Gramatellers cost around Rs.3 lakh each, which included a built-in UPS and did not need air-conditioning, he said.
Solar panels for a unit require an additional investment of Rs.1.5 lakh, but have near zero operational cost. Unlike large diesel gensets, these pay for themselve within two years.
Given Gramateller's success in harnessing solar energy and its commercial viability, several developing countries from Africa and East Asia are evincing interest in the technology, said Babu.
The initial lot of 400 solar ATMs, aptly called Gramateller ('gram' means village), the world's largest order, placed by the State Bank of India ( SBI), has been winning accolades for performance and substantial energy savings.
The ATMs were installed in 2010-11 across several states, usually within 20-50 km of the district headquarters, Vijay Babu, CEO of Vortex Engineering, which makes these units, told IANS from Chennai.
Following SBI's success with solar ATMs, the Catholic Syrian Bank also placed an order for 50 Gramatellers and Indian Bank for 20, while 10 more have been ordered by other banks, he added.
Both Babu and Lakshminarayan Kannan, who founded Vortex, are the alumni of the Indian Institute of Technology-Madras (IIT-M) and the brains behind the Gramateller.
"Our plans to operate ATMs on solar power were greeted with utter disbelief. We faced challenges initially in getting them adopted by our end users, the rural folks, who are not particularly tech-savvy. But once they realised that they were getting control of their own money, they accepted it wholeheartedly," said Babu.
"The workload has increased with more and more people using these facilities which, in most cases, are the only ATMs within 20 km or more, thanks to the solar power backup," added Babu.
The two entrepreneurs took up the project in 2004-05 at IIT-M's suggestion, developing and fine-tuning the product until it became commercially viable in 2008-09.
The IIT-M, which had been initially approached by the banks to develop a robust rural alternative to the existing ATMs, passed on the proposal to Vortex. Babu and Kannan have since inked a royalty agreement with their alma mater.
"Conventional ATMs may not be viable in areas subject to 8 to 10 hours of power cuts, given their dependence on gensets and air-conditioning. But thanks to the rural Gramateller, villagers don't have to undertake time-consuming trips to cities or towns for money," said Kannan.
Vortex is the only Indian company making it to the Time magazine 2011 list of "10 start-ups that will change your life", selected out of 31 companies honoured as "Technology Pioneers" by the World Economic Forum.
Vortex was recently selected as the latest entrant to Business Call to Action (BCtA), a global initiative that encourages private sector efforts to fight poverty, supported by the UN Development Programme, among others.
"The 'no frills' Gramateller has a 12-hour power back-up, provided there is good sunlight at least for five hours daily. Solar panels convert these rays into electrical energy, storing them in a battery. A single unit saves more than 90 per cent of the yearly expenditure incurred on operating an ATM, which works out to Rs.1.44 lakh, half of the amount being accounted by air-conditioning," said Sabarinath Nair, marketing manager, Vortex.
Gramateller comes with a biometric touch pad to prevent fraud and tell villagers that their money is safe. It can also dispense soiled notes in the interiors where crisp currency notes are suspected of being fakes, Nair said
Regular ATMs were priced between Rs.3.5-5 lakh apiece. They needed another Rs.60,000 and Rs.80,000 for the UPS and AC. Gramatellers cost around Rs.3 lakh each, which included a built-in UPS and did not need air-conditioning, he said.
Solar panels for a unit require an additional investment of Rs.1.5 lakh, but have near zero operational cost. Unlike large diesel gensets, these pay for themselve within two years.
Given Gramateller's success in harnessing solar energy and its commercial viability, several developing countries from Africa and East Asia are evincing interest in the technology, said Babu.
Auto Expo: Global carmakers to go greener, bigger at the show
MUMBAI: Fuel-efficient cars and a slew of new SUV models will be unveiled at Auto Expo later this week as global carmakers continue to rev up their activity in one of the world's few growth engines despite a recent slowdown in sales.
Around 50 new models will be presented to hundreds of delegates and half a million visitors as carmakers look to move on from a year of sluggish sales due to high interest rates and rising costs and fuel prices in Asia's third-largest economy.
The debut of South Korea's Ssangyong, owned by Mahindra & Mahindra, and product launches from Toyota Motor Corp and Renault SA will underline the country's importance to the world's biggest carmakers.
"The overwhelming feeling is that this current sales slowdown is a temporary phenomenon and global carmakers are certainly betting on India to bounce back. There's no slackening of interest here," R.C. Bhargava, chairman of Maruti Suzuki , told Reuters.
"Everybody is working on hybrid, fuel-efficient and green technology vehicles. There's an exciting race to find a small, cheap hybrid car for India, which will certainly be a winner."
Jaguar Land Rover, owned by India's Tata Motors, will skip the overlapping North American International Auto Show in Detroit to focus on the India event, while Ford Motor Co said it will make a world-first announcement in New Delhi. Car sales in India grew 30 percent in the fiscal year to end-March 2011, cheering global carmakers as economic turmoil hit sales in developed markets. Since then, interest rate hikes by Reserve Bank of India and rising input costs that pushed up prices have dented demand as economic growth cools.
The small-car segment, made famous by Tata's ultra-cheap Nano and targeted by firms such as General Motors Co and Fiat SpA's Chrysler, has suffered most as first-time buyers balk at the increased cost of credit or stick with a motorcycle, considered a family vehicle in India.
Still, the Indian economy is likely to grow at around 7 percent this fiscal year and rising salaries and a rapidly-growing middle class mean it remains one of the world's most exciting markets for automakers.
GREEN VS GAS-GUZZLERS
Led by the launch of Mahindra's first-ever electric cars following its 2010 acquisition of Reva and the first glimpse of a hybrid model of Maruti's popular Swift hatchback, the expo will see a slew of fuel-efficient and green technology launches.
Around 50 new models will be presented to hundreds of delegates and half a million visitors as carmakers look to move on from a year of sluggish sales due to high interest rates and rising costs and fuel prices in Asia's third-largest economy.
The debut of South Korea's Ssangyong, owned by Mahindra & Mahindra, and product launches from Toyota Motor Corp and Renault SA will underline the country's importance to the world's biggest carmakers.
"The overwhelming feeling is that this current sales slowdown is a temporary phenomenon and global carmakers are certainly betting on India to bounce back. There's no slackening of interest here," R.C. Bhargava, chairman of Maruti Suzuki , told Reuters.
"Everybody is working on hybrid, fuel-efficient and green technology vehicles. There's an exciting race to find a small, cheap hybrid car for India, which will certainly be a winner."
Jaguar Land Rover, owned by India's Tata Motors, will skip the overlapping North American International Auto Show in Detroit to focus on the India event, while Ford Motor Co said it will make a world-first announcement in New Delhi. Car sales in India grew 30 percent in the fiscal year to end-March 2011, cheering global carmakers as economic turmoil hit sales in developed markets. Since then, interest rate hikes by Reserve Bank of India and rising input costs that pushed up prices have dented demand as economic growth cools.
The small-car segment, made famous by Tata's ultra-cheap Nano and targeted by firms such as General Motors Co and Fiat SpA's Chrysler, has suffered most as first-time buyers balk at the increased cost of credit or stick with a motorcycle, considered a family vehicle in India.
Still, the Indian economy is likely to grow at around 7 percent this fiscal year and rising salaries and a rapidly-growing middle class mean it remains one of the world's most exciting markets for automakers.
GREEN VS GAS-GUZZLERS
Led by the launch of Mahindra's first-ever electric cars following its 2010 acquisition of Reva and the first glimpse of a hybrid model of Maruti's popular Swift hatchback, the expo will see a slew of fuel-efficient and green technology launches.
Bajaj Auto unveils small car RE 60 in partnership with Nissan and Renault
NEW DELHI: Bajaj Auto on Tuesday unveiled a mini four wheeler for intra-city urban transportation targetting three wheeler customers. ( Bajaj RE60: View pics )
The company, which had in 2008 showcased a concept small car but decided not to go ahead with the project, will launch the new product named RE60 later this year.
"Certainly, this is a product, the core customer for which are those who use a three wheeler," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here.
He said the RE60, powered by a 200 cc rear mounted petrol engine could also be sold in overseas markets where BAL's three wheelers are exported.
Bajaj said the company had spent nearly four years in developing the product that has a top speed of 70 kmph with a highest mileage of 35kmpl.
"This vehicle has been designed for intra-city passenger transport keeping in mind intra-city duty cycles and safety requirements," he added.
Commenting on the potential of the vehicle, he said the company expects a big growth opportunity by targeting the three wheeler segment.
The RE60 will be manufacturered in Bajaj's plant in Aurangabad and resembles an over-sized hatchback with an elevated roof.
Bajaj, however, did not share sales targets for the new product but said opportunities are not only in the domestic market but overseas as well.
"We make about 5,20,000 three-wheelers a year of which only 2,00,000 are sold in India and rest exported. So we see markets like Sri Lanka, which could be the first export market has huge potential for RE60," he said.
Asked about the association with Renault-Nissan alliance, Bajaj said: "They have not seen the product yet and will be seeing it at the Auto-Expo. Once they see it, we will decide the way forward."
As per an agreement with the Renault-Nissan alliance, BAL was supposed to develop and manufacture the vehicle and sold under the badge of the alliance.
In January, 2008 BAL had unveiled its concept passenger car with an expected price of USD 3000. It had partnered Renault-Nissan for the ultra low cost (ULC) car project.
The ULC was first scheduled to hit the roads in India in 2011, but was delayed due to differences between the partners on pricing and design.
While Renault-Nissan wanted to price the car at around $2,500, Bajaj insisted on lowering the overall cost of ownership.
In 2010, Renault-Nissan announced the signing of a memorandum of understanding with Bajaj Auto to take forward their ULC car project.
The company, which had in 2008 showcased a concept small car but decided not to go ahead with the project, will launch the new product named RE60 later this year.
"Certainly, this is a product, the core customer for which are those who use a three wheeler," Bajaj Auto Ltd (BAL) Managing Director Rajiv Bajaj told reporters here.
He said the RE60, powered by a 200 cc rear mounted petrol engine could also be sold in overseas markets where BAL's three wheelers are exported.
Bajaj said the company had spent nearly four years in developing the product that has a top speed of 70 kmph with a highest mileage of 35kmpl.
"This vehicle has been designed for intra-city passenger transport keeping in mind intra-city duty cycles and safety requirements," he added.
Commenting on the potential of the vehicle, he said the company expects a big growth opportunity by targeting the three wheeler segment.
The RE60 will be manufacturered in Bajaj's plant in Aurangabad and resembles an over-sized hatchback with an elevated roof.
Bajaj, however, did not share sales targets for the new product but said opportunities are not only in the domestic market but overseas as well.
"We make about 5,20,000 three-wheelers a year of which only 2,00,000 are sold in India and rest exported. So we see markets like Sri Lanka, which could be the first export market has huge potential for RE60," he said.
Asked about the association with Renault-Nissan alliance, Bajaj said: "They have not seen the product yet and will be seeing it at the Auto-Expo. Once they see it, we will decide the way forward."
As per an agreement with the Renault-Nissan alliance, BAL was supposed to develop and manufacture the vehicle and sold under the badge of the alliance.
In January, 2008 BAL had unveiled its concept passenger car with an expected price of USD 3000. It had partnered Renault-Nissan for the ultra low cost (ULC) car project.
The ULC was first scheduled to hit the roads in India in 2011, but was delayed due to differences between the partners on pricing and design.
While Renault-Nissan wanted to price the car at around $2,500, Bajaj insisted on lowering the overall cost of ownership.
In 2010, Renault-Nissan announced the signing of a memorandum of understanding with Bajaj Auto to take forward their ULC car project.
Crystal Group plans to branch out in Africa, Gulf
Hyderabad: New Delhi-based agro-chemical company Crystal Group, which acquired Rohini Seeds last week and raised private equity of Rs 150 crore, is planning to expand its operations to Africa and the Gulf.
The company, with a turnover of Rs 800 crore, is in the process of establishing bases in Uganda, Tanzania, Ghana and Nigeria.
“We will first go there with our flagship agro chemicals. After achieving sustainable figures, we will start seed business there too,” Mr Ankur Aggarwal, Managing Director of Crystal Group, toldBusiness Line.
“At present, exports contribute Rs 5 crore to the turnover. We would like this to grow by expanding our operations in Africa and the Gulf region,” he said.
funding
The company raised Rs 150 crore from the PE firm Everstone Capital in December. “We have the flexibility to deploy the funds for working capital needs, investments or acquisitions,” he said.
For the acquisition of the Hyderabad-based seed firm, it pooled in resources internally.
He refused to divulge cost of acquisition.
Asserting that there are no plans to raise more funds, Mr Aggarwal said the company is not looking to go in for a public issue.
“But it certainly is on our agenda. We will go for it in a 4-5 year timeframe or even before,” he said.
Consolidation
He said that the Rs 8,000-crore Indian seed industry is poised for growth.
It is expected to grow to Rs 13,030 crore in the next five years.
“There is huge scope for consolidation in the Indian seed industry. We will see more acquisitions in the next five years,” he said.
The company, with a turnover of Rs 800 crore, is in the process of establishing bases in Uganda, Tanzania, Ghana and Nigeria.
“We will first go there with our flagship agro chemicals. After achieving sustainable figures, we will start seed business there too,” Mr Ankur Aggarwal, Managing Director of Crystal Group, toldBusiness Line.
“At present, exports contribute Rs 5 crore to the turnover. We would like this to grow by expanding our operations in Africa and the Gulf region,” he said.
funding
The company raised Rs 150 crore from the PE firm Everstone Capital in December. “We have the flexibility to deploy the funds for working capital needs, investments or acquisitions,” he said.
For the acquisition of the Hyderabad-based seed firm, it pooled in resources internally.
He refused to divulge cost of acquisition.
Asserting that there are no plans to raise more funds, Mr Aggarwal said the company is not looking to go in for a public issue.
“But it certainly is on our agenda. We will go for it in a 4-5 year timeframe or even before,” he said.
Consolidation
He said that the Rs 8,000-crore Indian seed industry is poised for growth.
It is expected to grow to Rs 13,030 crore in the next five years.
“There is huge scope for consolidation in the Indian seed industry. We will see more acquisitions in the next five years,” he said.
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