Mumbai: The Gujarat-based Steelcast, a castings manufacturer, has entered into an agreement with global major Caterpillar Inc. Under the agreement, Steelcast will set up a dedicated manufacturing facility to make castings conforming to Caterpillar's specifications.
Caterpillar will give an interest free loan of $5 million (Rs 25 crore) to Steelcast. The loan is to be repaid over four years. Caterpillar is a global leader in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Revenues for 2011 total $60 billion.
Mr Chetan Tamboli, Chairman, Steelcast, said, “Through this agreement, we expect sales to Caterpillar to grow multi-fold from around Rs 40 crore in 2010-11 to about Rs 150 crore in 2015.”
Mr Tamboli said that in February a team from the American Association of Rail Road, audited the company's manufacturing facility at Bhavnagar, Gujarat. The team is expected to certify the production facility to enable Steelcast to export castings to the US Railways from June.
Steelcast expects to clock revenues of over Rs 225 crore in 2011-12, with about exports mainly to Germany and the US accounting for about 45 per cent.
Success in my Habit
Friday, March 23, 2012
Indofil forms joint venture with Chinese chemicals co
Gandhinagar: The Rs 5,000-crore K.K. Modi Group company Indofil Industries Ltd on Thursday announced formation of a joint venture with Shanghai Baijin Chemical Group of China. The venture will set up a carbon di-sulphide (CS {-2}) plant at Dahej in Gujarat with an investment of $40 million (nearly Rs 200 crore).
The plant, to be set up by the 51:49 ventre, will be known as Indo Baijin Chemicals Pvt Ltd. It will have an annual capacity to manufacture 50,000 tons of CS {-2} with an eco-friendly green technology, Mr K.K. Modi, Chairman, said here.
It will be the first of its kind plant in India, which currently imports 80 per cent of its CS {-2} requirements as raw material for various industries. Mr Modi told Business Line that his Group has signed agreement with Chinese partners to set up five to six specialty chemicals plants at Dahej in the next few years, as patents of various products start expiring in different countries. The CS {-2} plant is the first of these proposed plants, to be set up with an estimated investment of nearly Rs 5,000 crore.
The zero-waste plant, using natural gas as raw material, will be entitled to 25,000 tonnes of carbon credit a year and save 50,000 tonnes of wood (58 sq km of forests) annually, Mr Modi pointed out.
Indofil has also acquired two more sites at Dahej for a 6,000-tonne agro-chemical synthesis plant and a specialty chemicals plant with an investment of nearly Rs 600 crore.
Indofil had bought out trademarks and businesses of Dow Agrocide in Europe a couple of years ago. The company has set up a Rs 500-crore facility to manufacture these trademarked products at Dahej, which will start production in October.
The plant, to be set up by the 51:49 ventre, will be known as Indo Baijin Chemicals Pvt Ltd. It will have an annual capacity to manufacture 50,000 tons of CS {-2} with an eco-friendly green technology, Mr K.K. Modi, Chairman, said here.
It will be the first of its kind plant in India, which currently imports 80 per cent of its CS {-2} requirements as raw material for various industries. Mr Modi told Business Line that his Group has signed agreement with Chinese partners to set up five to six specialty chemicals plants at Dahej in the next few years, as patents of various products start expiring in different countries. The CS {-2} plant is the first of these proposed plants, to be set up with an estimated investment of nearly Rs 5,000 crore.
The zero-waste plant, using natural gas as raw material, will be entitled to 25,000 tonnes of carbon credit a year and save 50,000 tonnes of wood (58 sq km of forests) annually, Mr Modi pointed out.
Indofil has also acquired two more sites at Dahej for a 6,000-tonne agro-chemical synthesis plant and a specialty chemicals plant with an investment of nearly Rs 600 crore.
Indofil had bought out trademarks and businesses of Dow Agrocide in Europe a couple of years ago. The company has set up a Rs 500-crore facility to manufacture these trademarked products at Dahej, which will start production in October.
Ford lays foundation for $1-billion unit at Sanand
Sanand (Gujarat): Ford India on Thursday said it will commence production of four-wheelers at the new facility in 2014 for manufacturing engines and vehicles at Sanand.
The unit is being set up with an investment of $1 billion (nearly Rs 5,000 crore).
The company is setting up the new plant in 460 acres.
It will have an initial installed capacity to manufacture 2.70 lakh engines and 2.40 lakh vehicles a year, said Mr Michael Boneham, President and Managing Director, Ford India, after laying the foundation stone to mark inauguration of construction work.
The Gujarat Government has allotted another 150 acres to Ford India for suppliers. The company has attracted 19 world-class supplier manufacturers to date, he said.
The Sanand plant, when completed, will generate about 5,000 direct jobs, and indirect employment for many more people.
Figo to 50 nations
Mr Boneham said the company has until now committed investments of $2 billion (Rs 10,000 crore) at the Chennai and Sanand facilities.
Ford India will bring eight new vehicles to India by mid-decade, the first one being the all-new Fiesta, launched in July 2011. The Figo is being currently shipped to more than 33 countries and will eventually be exported to 50 international markets, he added.
Sharing vendors
Ford India will also consider synergies with common vendors supplying to neighbours like Tata Motors and Peugeot at Sanand to bring down the costs.
About the Chennai plant, he said the expansion of the powertrain facility to support sales and exports will be completed in mid-2012.
With this, the engine plant's annual production capacity will increase from 2.50 lakh to 3.40 lakh a year.
The unit is being set up with an investment of $1 billion (nearly Rs 5,000 crore).
The company is setting up the new plant in 460 acres.
It will have an initial installed capacity to manufacture 2.70 lakh engines and 2.40 lakh vehicles a year, said Mr Michael Boneham, President and Managing Director, Ford India, after laying the foundation stone to mark inauguration of construction work.
The Gujarat Government has allotted another 150 acres to Ford India for suppliers. The company has attracted 19 world-class supplier manufacturers to date, he said.
The Sanand plant, when completed, will generate about 5,000 direct jobs, and indirect employment for many more people.
Figo to 50 nations
Mr Boneham said the company has until now committed investments of $2 billion (Rs 10,000 crore) at the Chennai and Sanand facilities.
Ford India will bring eight new vehicles to India by mid-decade, the first one being the all-new Fiesta, launched in July 2011. The Figo is being currently shipped to more than 33 countries and will eventually be exported to 50 international markets, he added.
Sharing vendors
Ford India will also consider synergies with common vendors supplying to neighbours like Tata Motors and Peugeot at Sanand to bring down the costs.
About the Chennai plant, he said the expansion of the powertrain facility to support sales and exports will be completed in mid-2012.
With this, the engine plant's annual production capacity will increase from 2.50 lakh to 3.40 lakh a year.
VRL Logistics among 16 FDI proposals approved
New Delhi: The Government has cleared 16 proposals for foreign direct investment (FDI) worth about Rs 232.67 crore. These include proposals by VRL Logistics, CIIE Initiatives and Softgel Healthcare, Chennai.
The largest FDI proposal (Rs 175 crore) of Karnataka-based VRL Logistics is for transportation of goods and passengers, courier services other than postal services, aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators.
The approvals were based on the recommendations of Foreign Investment Promotion Board's meeting held on March 2, a Finance Ministry release said here on Thursday.
A total of 21 proposals were deferred. Among these are Mahindra and Mahindra's proposal to set up a joint venture to develop, manufacture and provide service support for radar systems and various kinds of defence electronic systems.
Another deferred proposal is from HSBC Insurance Services Holdings Ltd, London, for infusion of foreign investment into an Indian company that does not have any operations or downstream investments.
The deferred proposals also include Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc, UK, Advent Business Credit Development Company, Pune and Reed Elsevier India Pvt. Ltd.
Among the five proposals that were rejected was Bharti Shipyard's application to undertake additional defence production activity.
The next meeting of the FIPB is scheduled for March 30.
The largest FDI proposal (Rs 175 crore) of Karnataka-based VRL Logistics is for transportation of goods and passengers, courier services other than postal services, aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators.
The approvals were based on the recommendations of Foreign Investment Promotion Board's meeting held on March 2, a Finance Ministry release said here on Thursday.
A total of 21 proposals were deferred. Among these are Mahindra and Mahindra's proposal to set up a joint venture to develop, manufacture and provide service support for radar systems and various kinds of defence electronic systems.
Another deferred proposal is from HSBC Insurance Services Holdings Ltd, London, for infusion of foreign investment into an Indian company that does not have any operations or downstream investments.
The deferred proposals also include Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc, UK, Advent Business Credit Development Company, Pune and Reed Elsevier India Pvt. Ltd.
Among the five proposals that were rejected was Bharti Shipyard's application to undertake additional defence production activity.
The next meeting of the FIPB is scheduled for March 30.
Eastern Railway's freight traffic at 51.461 million tonnes during April 2011 to February 2012
Kolkata: Eastern Railway carried a total of 51.461 million tonnes of freight traffic during the period April 2011 to February 2012, as against 48.607 million tonnes, up 5.87% over the corresponding period of last year.
Out of the total loading this year, coal alone amounted to 34.092 million tonnes during the first 11 months of the current financial year, compared to 31.915 million tonnes carried during the corresponding period of last year.
Eastern Railway's freight earning went up to Rs 3225.19 crore during the period from April 2011 to February 2012 as against Rs 2876.28 crore during the corresponding period of last year, showing an increase of 12.13%.
Eastern Railway also carried 107.14 crore passengers during the period from April 2011 to February 2012 compared to 101.48 crore passengers , carried during the corresponding period of last year, recording a growth of 5.56%.
Earning from passenger traffic went up 8.97% to Rs. 1412.98 crore during the period from April 2011 to February 2012. T otal earnings went up by 11.31% to Rs. 4857.79 crore during the period from April 2011 to February 2012.
Out of the total loading this year, coal alone amounted to 34.092 million tonnes during the first 11 months of the current financial year, compared to 31.915 million tonnes carried during the corresponding period of last year.
Eastern Railway's freight earning went up to Rs 3225.19 crore during the period from April 2011 to February 2012 as against Rs 2876.28 crore during the corresponding period of last year, showing an increase of 12.13%.
Eastern Railway also carried 107.14 crore passengers during the period from April 2011 to February 2012 compared to 101.48 crore passengers , carried during the corresponding period of last year, recording a growth of 5.56%.
Earning from passenger traffic went up 8.97% to Rs. 1412.98 crore during the period from April 2011 to February 2012. T otal earnings went up by 11.31% to Rs. 4857.79 crore during the period from April 2011 to February 2012.
Nissan works on low-cost cars for Indian market
Mumbai: In a bid to aggressively compete against the top three Indian car makers, Maruti Suzuki, Tata Motors and Hyundai, Nissan is working on a slew of small car projects to be introduced in India under a new brand Datsun, starting 2014.
These low-cost cars from Datsun will fight for space in the price bracket of Rs 2-4 lakh, where the country’s highest selling model, Maruti Suzuki Alto, currently sells. Hyundai’s entry level car, Eon, and Tata Motors' Indica also sell in the space.
Nissan says the company is on course to launch two such models in 2014, and will progressively look at adding products at similar price points later. Datsun products will utilise Nissan and Renault's installed capacity at Chennai.
Nissan, the second largest automotive brand in Japan, is the second such company in India after Volkswagen to have refrained from entering into the low-cost segment using its own brand. Nissan-badged vehicles will sell above the Rs 4 lakh price tag in India.
Besides India, the Japanese company is looking to share the Datsun brand, which was progressively discontinued 25 years back, in emerging markets like Indonesia and Russia. Matured markets like the US, Japan and western European markets are not chosen for launching the Datsun brand.
Products under Datsun will have their unique platforms, besides their own vehicle technology. These products will be market specific, with limited or no scope for exports. Though Nissan officials did not provide details about Datsun's product plans, market reports say that one of the two products could be the one which is under development with a subsidiary of Ashok Leyland.
Ashwani Gupta, programme director, Datsun Business Unit, said, "The Datsun brand will be catering to the affordable segment with modern technology and generous features. These models will be developed locally and have a high local content and engineering.”
Targeting first-time buyers, Datsun's products will be aimed at buyers of used car or motorcycle. Hover Automotive, which handles sales, service and distribution of Nissan-branded cars in India, will also sell the Datsun brand. Thus, both brands will be sold under the same roof. Nissan is targeting about half of its sales to emerge under the Datsun brand. Product line-up and investment details will be disclosed at a later date, informed a Nissan official.
Carlos Ghosn, chief executive, Nissan Motor Company, said, "It's not going to be a global brand with global products; it’s going to be a global brand with very specific products adapted to market needs. We want to bring something much more modern."
Introduced in Japan in 1931, the Datsun brand established a strong foothold for the Japanese car maker in the all-important US market, beginning in the 1960s. But the nameplate was completely discontinued by 1986 globally in favour of the Nissan brand.
With the entry of Datsun, Nissan's entry level car will be Micra (priced at Rs 4.21 lakh, ex-showroom, Delhi). Among other models, Nissan also sells Sunny, Teana, Xtrail and the 370Z in India.
These low-cost cars from Datsun will fight for space in the price bracket of Rs 2-4 lakh, where the country’s highest selling model, Maruti Suzuki Alto, currently sells. Hyundai’s entry level car, Eon, and Tata Motors' Indica also sell in the space.
Nissan says the company is on course to launch two such models in 2014, and will progressively look at adding products at similar price points later. Datsun products will utilise Nissan and Renault's installed capacity at Chennai.
Nissan, the second largest automotive brand in Japan, is the second such company in India after Volkswagen to have refrained from entering into the low-cost segment using its own brand. Nissan-badged vehicles will sell above the Rs 4 lakh price tag in India.
Besides India, the Japanese company is looking to share the Datsun brand, which was progressively discontinued 25 years back, in emerging markets like Indonesia and Russia. Matured markets like the US, Japan and western European markets are not chosen for launching the Datsun brand.
Products under Datsun will have their unique platforms, besides their own vehicle technology. These products will be market specific, with limited or no scope for exports. Though Nissan officials did not provide details about Datsun's product plans, market reports say that one of the two products could be the one which is under development with a subsidiary of Ashok Leyland.
Ashwani Gupta, programme director, Datsun Business Unit, said, "The Datsun brand will be catering to the affordable segment with modern technology and generous features. These models will be developed locally and have a high local content and engineering.”
Targeting first-time buyers, Datsun's products will be aimed at buyers of used car or motorcycle. Hover Automotive, which handles sales, service and distribution of Nissan-branded cars in India, will also sell the Datsun brand. Thus, both brands will be sold under the same roof. Nissan is targeting about half of its sales to emerge under the Datsun brand. Product line-up and investment details will be disclosed at a later date, informed a Nissan official.
Carlos Ghosn, chief executive, Nissan Motor Company, said, "It's not going to be a global brand with global products; it’s going to be a global brand with very specific products adapted to market needs. We want to bring something much more modern."
Introduced in Japan in 1931, the Datsun brand established a strong foothold for the Japanese car maker in the all-important US market, beginning in the 1960s. But the nameplate was completely discontinued by 1986 globally in favour of the Nissan brand.
With the entry of Datsun, Nissan's entry level car will be Micra (priced at Rs 4.21 lakh, ex-showroom, Delhi). Among other models, Nissan also sells Sunny, Teana, Xtrail and the 370Z in India.
Elder Health Care forays into pain management category
New Delhi: Elder Health Care (EHCL), the FMCG arm of the Rs 950 crore plus pharma firm Elder group on Wednesday announced its entry in the pain management category with the launch of its brands, Respite and Elder balm.
The pain management category is estimated at Rs 2,000 crore.
Earlier, EHCL was licensee for Tiger balm, and with its own brands, Elder Healthcare has projected a turnover of Rs 300 crore by year 2013.
Elder Health Care MD Anuj Saxena said: "Pain management is a developing category. Our focus categories within pain management are balm and muscle rub which are growing at 6% and 20% respectively."
He said the company is planning various line extensions for both brands in different formats. "We want to make Elder balm and Respite into power brands," Saxena added.
The market is growing at 16-20%, and players include Amrutanjan and Iodex.
EHCL has a mix of own and in-licensed products in segments like pain management, fairness creams, oral care, lip care, burn categories, personal grooming and skin care.
The pain management category is estimated at Rs 2,000 crore.
Earlier, EHCL was licensee for Tiger balm, and with its own brands, Elder Healthcare has projected a turnover of Rs 300 crore by year 2013.
Elder Health Care MD Anuj Saxena said: "Pain management is a developing category. Our focus categories within pain management are balm and muscle rub which are growing at 6% and 20% respectively."
He said the company is planning various line extensions for both brands in different formats. "We want to make Elder balm and Respite into power brands," Saxena added.
The market is growing at 16-20%, and players include Amrutanjan and Iodex.
EHCL has a mix of own and in-licensed products in segments like pain management, fairness creams, oral care, lip care, burn categories, personal grooming and skin care.
Essar Oil commissions two more units at Vadinar refinery
Ahmedabad: Racing to complete its Rs 8,300-crore ongoing expansion plan as scheduled, Essar Oil Ltd on Wednesday said it has commissioned two more units at the Vadinar Refinery in Jamnagar district of Gujarat.
The two new units commissioned are the vacuum gas oil hydrotreating unit (VGOHDT) and the sulphur recovery unit at Vadinar. The company also commissioned the effluent treatment plant as part of the Phase I expansion project, to be completed by the end of March, the company said here.
Now, only the Delayed Coker Unit remains to be commissioned. The project, when completed, will expand the capacity of the refinery to 18 million tonnes per annum (mtpa) or 3.75 lakh barrels per day, and enhance complexity from the existing 6.1 to 11.8, which is amongst the highest in the world, Mr C Manoharan, Head of Vadinar Refinery, said. With a capacity of 6.5 mtpa, the VGOHDT at Vadinar is among the largest units of its kind. It will help the refinery produce low sulphur, high octane gasoline (petrol). The unit is also capable of producing naphtha, kerosene and gas oil (diesel).
Mr L.K. Gupta, Managing Director and CEO, Essar Oil, said the Vadinar Refinery, will be among the world's most complex refineries capable of producing fuels that meet the world's most stringent emission norms.
The ETP will treat 540 cubic metre of water per hour, which will be reused for cooling tower or for the generation of demineralised water through the RO plant. The treated water can also be used for horticulture.
Alongside the Phase I expansion, an optimisation project is also under way which will further increase the capacity to 20 mtpa (4.05 lakh bpd) by September 2012.
The two new units commissioned are the vacuum gas oil hydrotreating unit (VGOHDT) and the sulphur recovery unit at Vadinar. The company also commissioned the effluent treatment plant as part of the Phase I expansion project, to be completed by the end of March, the company said here.
Now, only the Delayed Coker Unit remains to be commissioned. The project, when completed, will expand the capacity of the refinery to 18 million tonnes per annum (mtpa) or 3.75 lakh barrels per day, and enhance complexity from the existing 6.1 to 11.8, which is amongst the highest in the world, Mr C Manoharan, Head of Vadinar Refinery, said. With a capacity of 6.5 mtpa, the VGOHDT at Vadinar is among the largest units of its kind. It will help the refinery produce low sulphur, high octane gasoline (petrol). The unit is also capable of producing naphtha, kerosene and gas oil (diesel).
Mr L.K. Gupta, Managing Director and CEO, Essar Oil, said the Vadinar Refinery, will be among the world's most complex refineries capable of producing fuels that meet the world's most stringent emission norms.
The ETP will treat 540 cubic metre of water per hour, which will be reused for cooling tower or for the generation of demineralised water through the RO plant. The treated water can also be used for horticulture.
Alongside the Phase I expansion, an optimisation project is also under way which will further increase the capacity to 20 mtpa (4.05 lakh bpd) by September 2012.
$240-m ADB loan to boost infra financing
New Delhi: The Central Government, Asian Development Bank (ADB) and India Infrastructure Finance Company Ltd (IIFCL) on Wednesday signed a $240-million loan agreement. This is the third and final tranche of the second India Infrastructure Project Financing Facility (IIPF).
In 2009, a $700-million multi-tranche financing facility was approved to finance sub-projects under IIFCL's investment programme for financing viable infrastructure projects in transport, urban and power projects.
The tranche-III is expected to support the Government's infrastructure agenda by enabling IIFCL to catalyse over 10 times its own resources from the private sector.
The loan has a 25-year term with a gross period of five years and interest would be determined in accordance with ADB's LIBOR-based lending facility.
The first and the second tranches of $460 million were earmarked to finance sub-projects for improving roads and highways in several States and to partially fund a power project in Kutch district in Gujarat.
This loan will flow to IIFCL on back-to-back basis with sovereign guarantee by the Centre.
In 2009, a $700-million multi-tranche financing facility was approved to finance sub-projects under IIFCL's investment programme for financing viable infrastructure projects in transport, urban and power projects.
The tranche-III is expected to support the Government's infrastructure agenda by enabling IIFCL to catalyse over 10 times its own resources from the private sector.
The loan has a 25-year term with a gross period of five years and interest would be determined in accordance with ADB's LIBOR-based lending facility.
The first and the second tranches of $460 million were earmarked to finance sub-projects for improving roads and highways in several States and to partially fund a power project in Kutch district in Gujarat.
This loan will flow to IIFCL on back-to-back basis with sovereign guarantee by the Centre.
India-US trade vital for global economy, says Godrej
Mumbai: The prospects of trade between India and US will be the trigger for global economic recovery, said Mr Adi Godrej, President-designate, Confederation of Indian Industry in an interaction with US-India business council.
“India's trade with the US has gone up from $5 billion in 1990 to $100 billion now. This has potential to grow further,” he said. To harness the full potential, both the countries should create an environment that is investment friendly for businesses to invest in both the countries, he added.
“Infrastructure remains a mega opportunity for the US companies to engage in India's development plans. From roads, highways and railways to ports and airports, India needs capacity building at every level,” said Mr Godrej.
An investment of $1 trillion has been envisaged for infrastructure development under the 12th Five-Year Plan and about 30 per cent of it is expected to come from the private sector.
“Policy reform in the financing arena, technology transfer and sharing best practices are some avenues through which collaboration among US and Indian SMEs can be accelerated,” Mr Godrej added.
“India's trade with the US has gone up from $5 billion in 1990 to $100 billion now. This has potential to grow further,” he said. To harness the full potential, both the countries should create an environment that is investment friendly for businesses to invest in both the countries, he added.
“Infrastructure remains a mega opportunity for the US companies to engage in India's development plans. From roads, highways and railways to ports and airports, India needs capacity building at every level,” said Mr Godrej.
An investment of $1 trillion has been envisaged for infrastructure development under the 12th Five-Year Plan and about 30 per cent of it is expected to come from the private sector.
“Policy reform in the financing arena, technology transfer and sharing best practices are some avenues through which collaboration among US and Indian SMEs can be accelerated,” Mr Godrej added.
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