Hero MotoCorp to invest Rs 160 crore in the Global Parts Centre in Rajasthan

Mumbai: Hero MotoCorp, the world's largest two wheeler manufacturer has announced setting up of Global Parts Centre (GPC) at Neemrana, Rajasthan.

To be set up with an investment of Rs 160 crore, the Global Part Centre will be spread across 35 acres, said Pawan Munjal, MD & CEO, Hero MotoCorp at the company's Global Supply Chain Partners Conference 2012 in St. Petersburg, Russia.

Over 125 top component supplier of Hero MotoCorp from India, China, Thailand, Japan and Europe participated in the three day global conference held in Russia.

The Global Parts Centre is expected to be operational by Q3 of FY-14 and will initially employ 400 personnel. The state-of-the-art GPC will have automated storage and retrieval system, automated packaging and sorting system, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing systems and most importantly, the Green Building Concept, said the company in a statement.

"The highly-mechanised, technologically-superior GPC will be a new industry benchmark once it becomes fully-operational," Munjal said.

The company also informed its supply chain partners that it will set up the fifth plant at Halol in the western India state of Gujarat, in addition to the fourth plant at Neemrana in Rajasthan.

The proposed Global Parts Centre comes close on the heels of HMCL recently announcing an investment of over Rs 2500 crore in setting up two new plants, expanding capacity at existing plants and in building an integrated R&D centre (at Kukas in Rajasthan). With this expansion, total installed capacity of the company would be touching more than nine million units in two years' time - which is in line with the stated objective of reaching 10 million units in the next five years.

The proposed new state-of-the-art integrated R&D centre at Kukas will be set-up over an area of 250-acre and the centre will be the largest two-wheeler R&D set-up in the country, and will employ over 500 engineers.

India Inc keen on Special Economic Zone space in Bangladesh

New Delhi: India has requested Bangladesh to consider setting up a Special Economic Zone for Indian companies keen on investing in the neighbouring country to help boost its exports to India as well as other countries.

Confederation of Indian Industry (CII) president Adi Godrej led a delegation of 15 CEOs to Dhaka this week, where meetings were held with Bangladesh's ministers for industry, finance and foreign affairs as well as its central bank governor and industry chambers.

"We have suggested that Bangladesh set up an SEZ for Indian firms that see a big scope for investments in the country across sectors such as oil and gas, infrastructure, consumer and agricultural goods. This could help tap the true potential of bilateral trade and investment flows," Godjrej told ET.

While Bangladesh has responded positively to the idea, most officials and industry leaders that met the Indian delegation expressed unhappiness at India's inability to seal the proposed bilateral Teesta river water-sharing treaty. Godrej assured Dhaka that the industry body would take up the issue with the Indian government.

To help deal with operational issues that arise in Indo-Bangladesh trade and investments, the CII has decided to open a permanent office in Dhaka and put in place an India-Bangladesh CEOs' forum. Similar industry interaction frameworks have been put in place by India with CEOs from the United States, United Kingdom and Africa.

India also raised problems faced by its companies on Bangladeshi soil with regards to remittance and repatriation of income.

"There are practical issues with the repatriation of income from Bangladesh and remitting salaries to Indian executives working there," Godrej said.

"The country's central bank has promised to look into resolving them positively," he said.Bangladesh expressed concerns about the trade imbalance it faces with India and said that non-tariff barriers imposed by India were restricting its opportunities for exports.

"India has already allowed zero-duty imports for Bangladesh's products. We will request the government to review some of the non-tariff barriers cited by Dhaka," Godrej said.

Eicher Motors signs strategic joint venture with Polaris Industries

Mumbai: Eicher Motors has signed a strategic joint venture agreement with US based powersports major, Polaris Industries, to set up a greenfield project in the automotive sector.

The definitive agreement, signed between Siddhartha Lal, MD & CEO, Eicher Motors and Scott W Wine, CEO, Polaris Industries envisages the creation of a 50:50 joint venture company.

The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility, with production expected to start in 2015.

Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies. The overall investment in the joint venture company over a three year period will be approximately Rs 250 crores.

"The joint venture company brings together Eicher's expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with product development capabilities," said Siddhartha Lal, Managing Director & CEO, Eicher Motors.

Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment, Lal said.

"This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe." said Scott W Wine, CEO, Polaris Industries.

ONGC, Australian varsity ink pact to tap unconventional oil resources

Hyderabad: ONGC and an Australian University have set their eyes on tapping oil resources in some tough and challenging locales in India.

These are called basement reservoirs. The research initiative will evaluate the potential of these unconventional oil resources.

The School of Petroleum Engineering at the UNSW (University of New South Wales) and the ONGC have forged a research agreement.

The project will assess the feasibility of recovering hydrocarbon fuel from these hard to access, offshore geological structures called basement reservoirs. ONGC is keen on its Mumbai offshore basin, a report from the University said.

The $2.05-million project would be executed over the next two-and-a-half years. This is the fourth major project between UNSW and ONGC since first signing a memorandum of understanding in 2002.

“These are very hard rocks that contain fractures, which in turn, contain oil that is very difficult to extract,” explains Professor Val Pinczewski, Head of the School of Petroleum Engineering. “This is an important partnership for UNSW that has grown with time,” says Mr Pinczewski.

After developing suitable mathematical models, experiments with rock samples provided by ONGC will be conducted on field to test how much oil is recoverable.

United Group opens design institute in Ahmedabad

Ahmedabad: Filling the gap in the design talent pool for industrial and non-industrial sector, Kolkata-headquartered United Group on Tuesday opened United Institute of Design in Ahmedabad.

Affiliated to the Gulbarga University, the institute will contribute in shaping the skills of talented designers in various design disciplines. The new campus located in Karnavati Knowledge Village, on the outskirts of Ahmedabad, has commenced from Tuesday.

United Institute of Design will offer four-year full-time degree programme in five disciplines of design namely fashion design, lifestyle and accessories design, product design, interior design, fine arts (visual communications & graphic design) and post graduation in fashion retail management area.

The institute will be mentored by alumni of National Institute of Design (NID), Centre for Environmental Planning and Technology (CEPT) University and Faculty of Fine Arts, M.S.University Vadodara. United Group MD Ritesh Hada said the institute would attempt to bridge the gap in the availability of design talent due to handful design institutes and the need from the industry.

Abhijeet Power, CLSA among 14 FDI proposals cleared

New Delhi: The Government has given a green signal to a Rs 674-crore foreign investment proposal by Abhijeet Power Ltd and another CLSA Singapore’s proposal to invest Rs 225 crore in the country.

These are among the 14 foreign direct investment proposals approved by the Government amounting to Rs 1,584.11 crore.

According to an official statement, Bajaj Finserv Ltd’s Rs 100-crore proposal relating to issue and allotment of equity shares to carry out business relating to NBFC activities also received the Government’s approval.

FIPB deferred 15 proposals and rejected seven. Among those rejected include Zara Holding’s proposal to set up joint venture with 51 per cent foreign equity participation for single brand retail. Appu Ghar Holdings proposal to make downstream investments was also turned down.

Among the proposals deferred include NYK Line Ltd setting up a limited liability partnership by indirect investment and Vyome Biosciences proposal to infuse foreign equity.

Three proposals have been advised that FIPB approval is not required. These include retailer Fabindia Overseas’ proposal to change shareholding structure of existing foreign investors within the approved holding limit of 51 per cent.

Govt plans business index for industry

Kolkata: The ministry of corporate affairs has initiated discussions with global consultancy major Dun & Bradstreet for developing a business index for industry. Dun & Bradstreet has already given a presentation in this regard. Besides, the ministry is working on a master plan for hassle-free business environment.

M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.

"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.

The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.

Govt plans business index for industry

Kolkata: The ministry of corporate affairs has initiated discussions with global consultancy major Dun & Bradstreet for developing a business index for industry. Dun & Bradstreet has already given a presentation in this regard. Besides, the ministry is working on a master plan for hassle-free business environment.

M Veerappa Moily said that the business index is aimed at assessing the competitiveness of Indian industry vis-a-vis other countries. He was talking to reporters on the sidelines of a seminar on 'Policy Initiatives of MCA to Empower Corporate Growth' organized by MCC Chamber of Commerce.

"There is a negative perception about our economy in India but not abroad. We have spoken to big consultancy firms and they are really bullish about us. So, we are working on business index. Why should we go by perceptions. There is a need to know the reality," he said. According to him, corporate affairs ministry will be ready with a master plan for better business environment in next one month. "We shall talk to other ministries like finance, commerce and law once we develop the master plan. We want to simplify issues like foreign investment promotion board clearances, prune obstacles for industry, simplify procedure for revival of sick units etc," he added.

The corporate affairs minister was confident that Indian economy will be back on track in next 2-3 months. "As per a latest report, India is the third most preferred destination for investment, so our future is quite bright," he added. Commenting on the delay in implementing IFRS, Moily pointed out that even US has not yet implemented.

Juice production picks up in the year 2012: CMIE

Chennai: Fruit juice production has witnessed a smart recovery since its sudden drop in production last June, shows data collected by the Centre for Monitoring Indian Economy (CMIE). Back then, fruit juice production suddenly dropped from a high of 6.77 crore litre to nearly half that amount at 3.41 crore litre. Since then, though, juice production has been following more or less an upward curve with consistent increases right through since the beginning of this year. Juice production in January 2012 climbed to 2.04 crore litre, up more than 50% from the December 2011 tally of 1.32 crore litre.

February saw production zoom upwards once again by more than 50% to hit 3.09 crore litre, says CMIE. March and April clocked even higher numbers - 4.64 crore litre and a huge6.09 crore litre respectively. The April tally in fact was the closest the industry has come to the May 2011 high and the second highest tally in 14 months. Though juice production in May 2012 is lower than April, at 5.79 crore litre, it is still the third highest since last March.

Part of the skew can be contributed to seasonality of the raw material and the fact that fruit juice consumption typically hits a peak in summer months so production peaks accordingly. That explains why October and November are dull months for juice production - a trend borne out in 2011. July and August, being bang in the middle of the rainy season, are also dull months for juice consumption and therefore juice production. Fruit pulp production also follows a similar pattern, peaking at the height of summer when demand for fruit juice is the highest. Production jumped in May 2011, zoomed upwards to a yearly high in June, remained high in July and then petered off only to pick up in May 2012. Of course the onset and volume of the monsoon also play a part and fruit pulp production this year will doubtless be impacted by the patchy rains.

India gets $5 million in first QFI investment; Kotak Mahindra Bank seals deal for US-based client

New Delhi: India has received its first investment through the qualified framework investor (QFI) route, putting an end to doubts that the country's attempt to get investors to buy shares directly will be a non-starter.

Kotak Mahindra Bank has concluded the deal worth $5 million for a US-based client, said a finance ministry official.

The finance ministry expects the scheme to attract investment worth about $30 billion over next 15-18 months, helping the country fund a chunk of the current account deficit pegged at 4.2% of GDP in 2011-12.

The finance ministry had held extensive road shows in five countries in the Gulf region--Riyadh, Dubai, Muscat, Kuwait and Bahrain - to project India as the incredible investment destination for wealthy investors. "There is tremendous interest in this scheme...We expect it to get investment worth 30-40 billion dollar over next 2 years," he said.

The ministry is now working on all tax related issues with regard to the scheme and will issue a detailed clarification in a fortnight, the official said.