MUMBAI: French luxury goods conglomerate Moet Hennessy Louis Vuitton SA (LVMH) is likely to clinch a multi-brand retail deal with New Delhi-based Genesis Luxury Fashion, in which the former's private equity arm L Capital holds a significant minority stake. Genesis Luxury is expected to open doors for LVMH's subsidiary Sephora, a multi-brand beauty and personal care retailer, with a licensing deal as talks failed with other contenders like Reliance Retail and Parcos, said two separate sources familiar with the matter.
LVMH is finalizing plans for Sephora a little over a month after India deferred foreign direct investment (FDI) in multi-brand retail. The 20-billion-euro luxury group's discussion with Genesis also signals its deepening ties with the Indian company after L Capital last year picked up 25.5% equity in the Sanjay Kapoorowned firm, which operates single-brand stores Just Cavalli, Canali, Paul Smith and Jimmy Choo. LVMH has independent operations of its flagship Louis Vuitton stores in the country. When contacted by TOI, a spokesperson for Genesis Luxury Fashion declined comment on its partnership with LVMH to bring Sephora to India, adding they would talk about their plans in time.
Industry observers said Sephora's deal-making with Genesis would be innovative following the L Capital investment in the latter. L Capital is sponsored by LVMH and Groupe Arnault-the private holding company of business tycoon and LVMH chairman Bernard Arnault-managing assets worth over 900 million euros. The Sephora stores are likely to open by end of this year offering cosmetic, skin care, fragrance, bath and body, hair care across multiple brands. The retail chain also has a hugely popular private label brand in its name which is moderately priced as well as a strong online presence across markets. Sephora has over 1,200 stores globally.
LVMH has been scouting for a partner to unfurl its multibrand retail operations in India, and had held discussions with multiple suitors, including Reliance Retail, a part of India's largest private sector company Reliance Industries. One of the sources mentioned earlier said LVMH always seeks control over retail operations, and would have preferred Genesis given its existing investment ties. This would also provide the group enough flexibility to expand Sephora's India business.
Sephora and DFS (a dutyfree store chain) are the two multi-brand retail businesses of LVMH. The Paris-based group is betting big on the potential of its multi-brand channels in emerging markets like India. DFS has been in talks with the country's swanky new airports to start operations. The Indian beauty retail market is largely unorganized with department store chain such as Shoppers Stop and Lifestyle offering shop-in-shop outlets for most of the high-end brands operating in the segment. "The key challenges facing the industry are low consumer awareness, limited supply side push and product, infrastructure/retail channel availability. This is where a multi-brand outlet which offers a plethora of choices has a huge potential to succeed," said Neelesh Hundekari, principal at consulting firm AT Kearney.
An AT Kearney-CII report on the luxury market said the personal care segment in India is estimated at $280 million as of 2010 and growing at 22%. Typically, a female consumer dominated market in other countries, with a significant share of cosmetics and skin care, the Indian market stands out for its fragrance domination.
Success in my Habit
Wednesday, January 25, 2012
Tiffany's in talks with Reena Wadhwa for India entry
NEW DELHI: Iconic US jeweller Tiffany & Co is in talks to enter India through a 51% joint venture with actress-turned-luxury entrepreneur Reena Wadhwa, who already has a joint venture with Italian luxury brand Gucci, a person familiar with the negotiations said. "The deal is on the table now and could be signed soon," the person said.
Reena Wadhwa, who is married to investment banker and Ambit Group CEO Ashok Wadhwa, will float a new venture to run Tiffany's business, the person said.
Wadhwa confirmed she has been in talks with Tiffany's, but said nothing has been finalised. Tiffany & Co Vice President, Emerging Markets, Laurent Cathala said: "We have been pursuing discussions with potential partners and will announce the details of a business structure in India when we have finalised our plans and have signed the appropriate agreements."
Started as a stationery and fancy goods store in New York in 1837, Tiffany's is today the world's second-largest luxury jewellery retailer behind Chinese jeweller Chow Tai Fook, operating around 230 stores world over.
During its long history - Tiffany's will complete 175 years in September - the jeweller helped shape American culture including creating a design for the Union Army that would become baseball team New York Yankees' "NY" logo.
The company is fighting falling sales in the US and most European countries. During the festival season, better sales in Asian countries helped Tiffany's post a 7% rise in worldwide sales.
The company's management recently identified India as one of the key markets for the future. "We view India as an attractive long-term growth opportunity for Tiffany's," said Cathala, who heads Tiffany's emerging markets business, which covers the Middle East, Gulf countries, Europe, Africa, Turkey and India, and is based in Dubai.
Tiffany's is hoping to capture a pie of the country's $5.8-billion luxury market, which is expected to grow more than 20% a year to $14.7 billion by 2015.
Cathala is leading Tiffany's negotiations with Wadhwa being held out of Dubai, said the unnamed person quoted earlier.
Wadhwa had converted her company Luxury Goods Retail Pvt Ltd into a joint venture with Gucci in 2009, with the Italian firm holding 51% share. Gucci ended a franchisee deal with the Murjanis to form the joint venture.
A number of luxury brands have set sights on India as the luxury market is growing more than 20% a year. With the number of high net worth individuals increasing and aspiration levels of the young consumer class rising, the potential is big.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS.
The Indian government had recently allowed 100% foreign direct investment in single brand retail, but with a rider that retailers having more than 51% FDI will have to source at least 30% of their products from Indian small and medium enterprises, or those firms having invested not more than $1 million, or over 5 crore, in plant and machinery.
Sniffing an opportunity, real estate developers are expected to add more than one million sq ft of exclusive space for luxury retail over the next two-three years across the country.
Reena Wadhwa, who is married to investment banker and Ambit Group CEO Ashok Wadhwa, will float a new venture to run Tiffany's business, the person said.
Wadhwa confirmed she has been in talks with Tiffany's, but said nothing has been finalised. Tiffany & Co Vice President, Emerging Markets, Laurent Cathala said: "We have been pursuing discussions with potential partners and will announce the details of a business structure in India when we have finalised our plans and have signed the appropriate agreements."
Started as a stationery and fancy goods store in New York in 1837, Tiffany's is today the world's second-largest luxury jewellery retailer behind Chinese jeweller Chow Tai Fook, operating around 230 stores world over.
During its long history - Tiffany's will complete 175 years in September - the jeweller helped shape American culture including creating a design for the Union Army that would become baseball team New York Yankees' "NY" logo.
The company is fighting falling sales in the US and most European countries. During the festival season, better sales in Asian countries helped Tiffany's post a 7% rise in worldwide sales.
The company's management recently identified India as one of the key markets for the future. "We view India as an attractive long-term growth opportunity for Tiffany's," said Cathala, who heads Tiffany's emerging markets business, which covers the Middle East, Gulf countries, Europe, Africa, Turkey and India, and is based in Dubai.
Tiffany's is hoping to capture a pie of the country's $5.8-billion luxury market, which is expected to grow more than 20% a year to $14.7 billion by 2015.
Cathala is leading Tiffany's negotiations with Wadhwa being held out of Dubai, said the unnamed person quoted earlier.
Wadhwa had converted her company Luxury Goods Retail Pvt Ltd into a joint venture with Gucci in 2009, with the Italian firm holding 51% share. Gucci ended a franchisee deal with the Murjanis to form the joint venture.
A number of luxury brands have set sights on India as the luxury market is growing more than 20% a year. With the number of high net worth individuals increasing and aspiration levels of the young consumer class rising, the potential is big.
India has three million affluent households, defined as those with more than $100,000, or more than 50 lakh, of investable surplus, according to a global affluence study by research firm TNS.
The Indian government had recently allowed 100% foreign direct investment in single brand retail, but with a rider that retailers having more than 51% FDI will have to source at least 30% of their products from Indian small and medium enterprises, or those firms having invested not more than $1 million, or over 5 crore, in plant and machinery.
Sniffing an opportunity, real estate developers are expected to add more than one million sq ft of exclusive space for luxury retail over the next two-three years across the country.
Aditya Birla Nuvo contests tax liability
MUMBAI: Aditya Birla Nuvo, part of the $35 billion Aditya Birla Group, has filed a petition against the Income tax department over the tax liability of around Rs 8 crore.
The department had levied the tax demand on Aditya Birla Nuvo which the company termed as operational expenditure for constructing a road near one of their manufacturing plants. Since the plant is yet to start production, the tax authorities said the company can not claim exemption.
On Wednesday, a divisional bench comprising Justice JP Devdhar and Justice AR Joshi adjourned the case to next week. The $4 billion Aditya Birla Nuvo is a diversified conglomerate and is involved in the business of branded apparels, carbon black and viscose filament yarn. Senior counsel Atul Jasani is arguing the case on behalf of Aditya Birla Nuvo, while the income tax department is being represented by senior counsel Vimal Gupta.
Recently, the Bombay High Court had dismissed the plea filed by the Group's flagship, Hindalco Industries, which had challenged the department's contention that tax should be levied on corporate guarantees issued by the company.
The department had levied the tax demand on Aditya Birla Nuvo which the company termed as operational expenditure for constructing a road near one of their manufacturing plants. Since the plant is yet to start production, the tax authorities said the company can not claim exemption.
On Wednesday, a divisional bench comprising Justice JP Devdhar and Justice AR Joshi adjourned the case to next week. The $4 billion Aditya Birla Nuvo is a diversified conglomerate and is involved in the business of branded apparels, carbon black and viscose filament yarn. Senior counsel Atul Jasani is arguing the case on behalf of Aditya Birla Nuvo, while the income tax department is being represented by senior counsel Vimal Gupta.
Recently, the Bombay High Court had dismissed the plea filed by the Group's flagship, Hindalco Industries, which had challenged the department's contention that tax should be levied on corporate guarantees issued by the company.
Nokia, Tata and LG are most trusted brands in India
NEW DELHI: Nokia, Tata and LG are amongst most trusted brands in India, said a survey Tuesday.
The revelation was made by 'Brand Trust Report 2012' which lists India's 1,000 most trusted brands.
Nokia, Tata and LG were followed by Samsung, Sony, Maruti Suzuki, Bajaj, LIC and Airtel on the list of the most trusted brands.
"The research is conducted with 2,718 'influencer' respondents from 15 cities, generating more than two million data-points from 12,000 hours of research," Trust Research Advisory firm which conducted the survey said in a statement.
The survey also came out with 22 most trusted personalities, whose list anti-corruption crusader Anna Hazare topped, followed by Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan.
Most trusted leaders in specific categories include Armani in branded fashion, DLF in construction, NIIT in education, ONGC in energy, PVR in entertainment, Pepsi in food and beverages (F&B) and Dabur in healthcare.
Other trusted brands included Taj Hotels in hospitality, Google in internet, ACC in manufacturing, Thomas Cook in services, Being Human in social sector, Hewlett Packard in technology, and Air India in airlines
The revelation was made by 'Brand Trust Report 2012' which lists India's 1,000 most trusted brands.
Nokia, Tata and LG were followed by Samsung, Sony, Maruti Suzuki, Bajaj, LIC and Airtel on the list of the most trusted brands.
"The research is conducted with 2,718 'influencer' respondents from 15 cities, generating more than two million data-points from 12,000 hours of research," Trust Research Advisory firm which conducted the survey said in a statement.
The survey also came out with 22 most trusted personalities, whose list anti-corruption crusader Anna Hazare topped, followed by Sachin Tendulkar, Salman Khan, Amitabh Bachchan and Aamir Khan.
Most trusted leaders in specific categories include Armani in branded fashion, DLF in construction, NIIT in education, ONGC in energy, PVR in entertainment, Pepsi in food and beverages (F&B) and Dabur in healthcare.
Other trusted brands included Taj Hotels in hospitality, Google in internet, ACC in manufacturing, Thomas Cook in services, Being Human in social sector, Hewlett Packard in technology, and Air India in airlines
Blue Star expects financials to take a hit in next two quarters
HYDERABAD: Blue Star, India's largest central air-conditioning company, anticipates its financials in the next two quarters to be affected by the downtrend in commercial construction activity.
According to B Thiagarajan, president (air-conditioning and refrigeration group) Blue Star, the company expects growth in its contracting business, which accounts for 40 per cent of the revenues, only after two years.
Contracting business involves air-conditioning of projects such as shopping malls, airports, and large office complexes.
The company suffered a net loss of Rs 11.01 crore in the half-year period in the current fiscal mainly on account of a lull in contracting business.
The company reported a net profit of Rs 75.79 crore in the corresponding period last fiscal.
According to the company, the electro mechanical projects and packaged air-conditioning business, accounting for 64 per cent of the total revenues in the second quarter, declined by 19 per cent while segment results fell sharply to a loss of Rs 3.41 crore as compared to a profit of Rs 43.37 crore during Q2 FY11.
"The cost overruns due to sudden collapse of construction activity. Some projects did not get closed. In the process we indeed incurred losses...Our forecast is contracting business will have tough time for the next couple of quarters and the growth we expect in the market will be only in 2014," Thiagarajan told media-persons at a press conference here today.
To a query, he said, the company will invest Rs 20 crore in advertisement and other promotional activities for this season and is mulling to hike product prices by 10 to 15 per cent for the ensuing summer season.
Blue Star which has a market share of 7.5 per cent in room air-conditioner market is aiming to reach 9 per cent share this year.
"We have improved our market share from 5.5 per cent to close to 7.5 per cent. We should move towards the 9 per cent range this year itself. That is our plan. We have hopes to improve our market share to even 15 per cent in the coming years," he said.
The company commands 30 per cent share in packaged air- conditioners market and 25 per cent in refrigeration and cold storage segment.
According to B Thiagarajan, president (air-conditioning and refrigeration group) Blue Star, the company expects growth in its contracting business, which accounts for 40 per cent of the revenues, only after two years.
Contracting business involves air-conditioning of projects such as shopping malls, airports, and large office complexes.
The company suffered a net loss of Rs 11.01 crore in the half-year period in the current fiscal mainly on account of a lull in contracting business.
The company reported a net profit of Rs 75.79 crore in the corresponding period last fiscal.
According to the company, the electro mechanical projects and packaged air-conditioning business, accounting for 64 per cent of the total revenues in the second quarter, declined by 19 per cent while segment results fell sharply to a loss of Rs 3.41 crore as compared to a profit of Rs 43.37 crore during Q2 FY11.
"The cost overruns due to sudden collapse of construction activity. Some projects did not get closed. In the process we indeed incurred losses...Our forecast is contracting business will have tough time for the next couple of quarters and the growth we expect in the market will be only in 2014," Thiagarajan told media-persons at a press conference here today.
To a query, he said, the company will invest Rs 20 crore in advertisement and other promotional activities for this season and is mulling to hike product prices by 10 to 15 per cent for the ensuing summer season.
Blue Star which has a market share of 7.5 per cent in room air-conditioner market is aiming to reach 9 per cent share this year.
"We have improved our market share from 5.5 per cent to close to 7.5 per cent. We should move towards the 9 per cent range this year itself. That is our plan. We have hopes to improve our market share to even 15 per cent in the coming years," he said.
The company commands 30 per cent share in packaged air- conditioners market and 25 per cent in refrigeration and cold storage segment.
India taken aback by Ikea reaction
NEW DELHI: India has expressed surprise at top homeware retailer Ikea's purported thumbs-down on setting up shop in the country, saying the Swedish firm's misgivings about local sourcing clauses in the recent policy on single-brand retail needn't be a deal breaker.
Commerce and Industry Minister Anand Sharma, whose ministry put together the new policy that permits 100% foreign ownership in the single-brand retail sector, appeared taken aback by reports that suggested Ikea was considering withholding its entry into India because of requirements such as sourcing of 30% goods from local small and medium companies.
"I don't know where the problem is. The chief of Ikea had told me only last year that they were already sourcing 30% of their global wares from India and the figure will only increase in the future," he told ET.
On Tuesday, news reports suggested that Ikea, which for long symbolised the type of overseas company that would be attracted by the policy change, had found the conditions on local sourcing as "concerning".
Ikea CEO Mikael Ohlsson was quoted in one report as saying while the outright ownership of operations granted to foreign single-brand retailers earlier this month was "a very positive change", the local sourcing rules were more easily met by food retailers than single-brand companies with established, global product ranges.
A company spokeswoman was quoted as saying: "We have found that the conditions applied to local sourcing from small and mid-size enterprises might be difficult for us to live up to."
Sharma said nobody had approached him, specifically mentioning these sourcing rules as an impediment. But he hinted that the government could be flexible. Ikea and other overseas retailers such as Wal-Mart, Carrefour and Tesco already source a range of items such as clothes, rugs, toothpastes and dog food from Indian companies, with many of them having done so for years. These companies also want to sell in India, the third biggest retail market in Asia.
Supermarket chains such as Wal-Mart, Carrefour and Tesco, which sell products of multiple brands, cannot set up stores yet as foreign direct investment is barred in multi-brand retail. At the start of 2012, the government notified 100% foreign investment in single brand retail with a key condition mandating all proposals involving FDI beyond 51% to source at least 30% of the value of products sold from 'Indian small industries/village and cottage industries, artisans and craftsmen'.
Some retail industry experts have also suggested that overseas retailers had a bigger problem with the definition of SMEs, which could automatically disqualify several vendors.
Commerce and Industry Minister Anand Sharma, whose ministry put together the new policy that permits 100% foreign ownership in the single-brand retail sector, appeared taken aback by reports that suggested Ikea was considering withholding its entry into India because of requirements such as sourcing of 30% goods from local small and medium companies.
"I don't know where the problem is. The chief of Ikea had told me only last year that they were already sourcing 30% of their global wares from India and the figure will only increase in the future," he told ET.
On Tuesday, news reports suggested that Ikea, which for long symbolised the type of overseas company that would be attracted by the policy change, had found the conditions on local sourcing as "concerning".
Ikea CEO Mikael Ohlsson was quoted in one report as saying while the outright ownership of operations granted to foreign single-brand retailers earlier this month was "a very positive change", the local sourcing rules were more easily met by food retailers than single-brand companies with established, global product ranges.
A company spokeswoman was quoted as saying: "We have found that the conditions applied to local sourcing from small and mid-size enterprises might be difficult for us to live up to."
Sharma said nobody had approached him, specifically mentioning these sourcing rules as an impediment. But he hinted that the government could be flexible. Ikea and other overseas retailers such as Wal-Mart, Carrefour and Tesco already source a range of items such as clothes, rugs, toothpastes and dog food from Indian companies, with many of them having done so for years. These companies also want to sell in India, the third biggest retail market in Asia.
Supermarket chains such as Wal-Mart, Carrefour and Tesco, which sell products of multiple brands, cannot set up stores yet as foreign direct investment is barred in multi-brand retail. At the start of 2012, the government notified 100% foreign investment in single brand retail with a key condition mandating all proposals involving FDI beyond 51% to source at least 30% of the value of products sold from 'Indian small industries/village and cottage industries, artisans and craftsmen'.
Some retail industry experts have also suggested that overseas retailers had a bigger problem with the definition of SMEs, which could automatically disqualify several vendors.
Indian tyre industry facing threat from cheap Chinese imports
AGARTALA: The Chairman of Rubber Board, Sheila Thomas, said that India's rubber industry is facing a threat due to cheap import of products from China, adding that the country could easily overcome this problem since the quality of products manufactured in India are superior as compared to other countries.
She said this on the sidelines of a prize giving ceremony for rubber growers in Agartala.
"China is mostly cheaper goods, how they produce it we don't know, especially non-tyre, but tyre also. Tyre people are also facing threat from cheaper imports from China. But, then we can, through our competence and government has some measures to help them out, so I am sure they can. Quality-wise we are superior to everyone in the world I think, that's why all the tyre majors are coming to India now to put up their plants," said Thomas.
Thomas added that rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year.
"Rubber has certainly helped in giving the people a sustainable income, the best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. So, that gives a steady income to the farmer and prices now are good. If the economic growth improves, then consumption of rubber will also go up," she added.
She predicted that in the near future Indian economy would emerge stronger as the demand for natural rubber is directly proportional to the GDP of a nation.
She said this on the sidelines of a prize giving ceremony for rubber growers in Agartala.
"China is mostly cheaper goods, how they produce it we don't know, especially non-tyre, but tyre also. Tyre people are also facing threat from cheaper imports from China. But, then we can, through our competence and government has some measures to help them out, so I am sure they can. Quality-wise we are superior to everyone in the world I think, that's why all the tyre majors are coming to India now to put up their plants," said Thomas.
Thomas added that rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year.
"Rubber has certainly helped in giving the people a sustainable income, the best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. So, that gives a steady income to the farmer and prices now are good. If the economic growth improves, then consumption of rubber will also go up," she added.
She predicted that in the near future Indian economy would emerge stronger as the demand for natural rubber is directly proportional to the GDP of a nation.
Tyre makers' rubber import plans go awry on faltering demand
KOCHI: A slack demand in the tyre market has upset tyre companies' plans to import rubber and take advantage of low international prices. Tyre consumption recorded a marginal improvement in November but remained flat in December. This has forced tyre makers to adopt a wait-and-watch policy before adding to their inventory through imports.
With global rubber prices likely to remain subdued for some more time, tyre makers were gearing up for more import of natural rubber. The import of 40,000 tonne of rubber sanctioned by government at the reduced duty of 7.5% has more or less been completed.
"The tyre industry has decided to wait and watch before going for further imports as demand has not rebounded fully. Since there was some improvement in November sales, we were hoping it would be better in December. But the demand was flat last month," said Rajiv Budhraja, director general, Automotive Tyre Manufacturers' Association.
During the period from August to October, truck and bus tyre sales dropped 12% over the April-July period. Passenger car sales fell 8% in the period.
Overall, tyre production slid by 7% in the three months ended October 2011. The scenario has not changed much in the subsequent two months and the industry doesn't have high hopes for January.
Global rubber prices hovered around Rs 180 per kg in December while domestic prices remained around Rs 200 per kg. Even after considering the depreciation in rupee, imports are viable, say tyre industry sources.
"At the present international price, the landed cost of imported rubber will be around Rs 205 per kg. On the other hand, buying rubber from the local market and transporting it to the factories will take the cost to Rs 212 per kg," said George Valy, president of Rubber Dealers Association. The industry had earlier considered asking the government for duty-free imports factoring in the depreciation in rupee. But it now looks unlikely.
The sovereign debt crisis in Europe and lower offtake by China have kept the global rubber prices depressed. Chinese buying is expected to improve after their new year in January.
In Indian market, the future contracts are showing a bearish phase. The January contract for delivery is ruling at Rs 197. According to George Valy, growers may be reluctant to sell below Rs 200 per kg.
With global rubber prices likely to remain subdued for some more time, tyre makers were gearing up for more import of natural rubber. The import of 40,000 tonne of rubber sanctioned by government at the reduced duty of 7.5% has more or less been completed.
"The tyre industry has decided to wait and watch before going for further imports as demand has not rebounded fully. Since there was some improvement in November sales, we were hoping it would be better in December. But the demand was flat last month," said Rajiv Budhraja, director general, Automotive Tyre Manufacturers' Association.
During the period from August to October, truck and bus tyre sales dropped 12% over the April-July period. Passenger car sales fell 8% in the period.
Overall, tyre production slid by 7% in the three months ended October 2011. The scenario has not changed much in the subsequent two months and the industry doesn't have high hopes for January.
Global rubber prices hovered around Rs 180 per kg in December while domestic prices remained around Rs 200 per kg. Even after considering the depreciation in rupee, imports are viable, say tyre industry sources.
"At the present international price, the landed cost of imported rubber will be around Rs 205 per kg. On the other hand, buying rubber from the local market and transporting it to the factories will take the cost to Rs 212 per kg," said George Valy, president of Rubber Dealers Association. The industry had earlier considered asking the government for duty-free imports factoring in the depreciation in rupee. But it now looks unlikely.
The sovereign debt crisis in Europe and lower offtake by China have kept the global rubber prices depressed. Chinese buying is expected to improve after their new year in January.
In Indian market, the future contracts are showing a bearish phase. The January contract for delivery is ruling at Rs 197. According to George Valy, growers may be reluctant to sell below Rs 200 per kg.
Rubber board to focus on non-tyre sector
KOCHI: The Rubber Board will focus its promotion activities on consumption by the non-tyre sectors as offtake has dropped over 5% in the last six months.
Usually, this sector absorbs almost a third of production. Lacking the financial strength of tyre companies, the 4,000-plus units in the non-tyre sector are vulnerable to the changes in rubber prices and duties.
The sector was hit by a sharp rise in rubber prices and a low import duty on finished products last year. The downturn in the rubber prices towards the end of the year has brought some relief for the sector, which comprises many small-scale units.
As part of efforts to promote the sector, Rubber Board is taking an initiative to set up a product testing laboratory in Chennai. Rubber Board is hoping to get funds for the laboratory next fiscal.
Usually, this sector absorbs almost a third of production. Lacking the financial strength of tyre companies, the 4,000-plus units in the non-tyre sector are vulnerable to the changes in rubber prices and duties.
The sector was hit by a sharp rise in rubber prices and a low import duty on finished products last year. The downturn in the rubber prices towards the end of the year has brought some relief for the sector, which comprises many small-scale units.
As part of efforts to promote the sector, Rubber Board is taking an initiative to set up a product testing laboratory in Chennai. Rubber Board is hoping to get funds for the laboratory next fiscal.
TVS to scale up operations in West Bengal
KOLKATA: TVS Motor would ramp up its existing operations of manufacturing two-wheelers at Uluberia in Howrah over the next three years, a senior official of the company said.
"We are going to increase production of motorcycles at the Uluberia plant from 1600 units per year to 2.4 lakh units per year over a period of three years", TVS chairman Venu Srinivasan told reporters on the concluding day of Bengal Leads 2012 here today.
He said that total investment would around Rs 400 crore to be spent over three years.
Earlier, TVS had entered into a JV with Mahabharat Motors of Universal Success to manufacture two-wheelers on 44 acres of land.
Srinivasan said that on the remaining 56 acres, the JV would set up an auto ancillary unit.
Talks with vendors were on, he said.
"We are going to increase production of motorcycles at the Uluberia plant from 1600 units per year to 2.4 lakh units per year over a period of three years", TVS chairman Venu Srinivasan told reporters on the concluding day of Bengal Leads 2012 here today.
He said that total investment would around Rs 400 crore to be spent over three years.
Earlier, TVS had entered into a JV with Mahabharat Motors of Universal Success to manufacture two-wheelers on 44 acres of land.
Srinivasan said that on the remaining 56 acres, the JV would set up an auto ancillary unit.
Talks with vendors were on, he said.
Subscribe to:
Posts (Atom)