Mumbai: The Indian small and light commercial vehicle segment, which is one of the fastest growing segments in the country is expected to more than double by 2015-16 and grow at 18.5% compounded annual growth rate for the next five years, according to research report published by leading research agency Frost & Sullivan called 'Strategic Assesment of Small and Light Commercial Vehicles Market in India.'
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
Success in my Habit
Tuesday, July 31, 2012
India takes the lead in national standards for organic textiles
New Delhi: India has become the first country in the world to introduce national standards for organic textiles. This follows the Commerce, Industry and Textiles Minister, Mr Anand Sharma, on Monday launching the “Indian Standards for Organic Textiles” (ISOT). The standards will be introduced in the National Standards for Organic Production (NPOP) and will be administered by the Commerce and Industry Ministry as part of the Foreign Trade Policy, an official statement said. There are over 1,000 branded organic products produced in India and each one is backed up with certification and traceability. Last year, India supplied certified organic products worth Rs 1,866 crore to Europe, Asia and the US, Mr Sharma said. “The NPOP includes norms for organic production and processing of agriculture crops and certification standards. Certification standards for organic textiles were not a part of it earlier. By introducing ISOT, India took over the long-standing position of the Global Organic Textiles standards (GOTS), a private standards prevailing in the organic textiles industry,” said the Commerce Secretary, Mr S.R. Rao.
Monday, July 30, 2012
Technopark incubator, Oman college ink MoU
Thiruvananthapuram: Technopark-Technology Business Incubator has agreed to help set up an entrepreneurial ecosystem at the Caledonian College of Engineering, Oman.
Both parties signed an agreement here on Thursday. The incubator will provide technical assistance and guidance to establish, develop and promote a centre for creativity and innovation at the college in the Sultanate.
First Centre
This joint initiative will result in Oman’s first centre for creativity and innovation, a spokesperson for the Technopark incubator said here.
The arrangement will enable the college to collaborate with companies at the incubator to establish network and connections in Oman.
The latter shall also arrange training for professional development relevant to innovation and entrepreneurship at Caledonian.
Both parties will offer training, special short courses and consultancy services to the industries and commerce ministry in Oman for establishing the innovation centre.
Dr K. C. Chandrasekharan Nair, chief financial officer, Technopark, and secretary and registrar of the Technopark incubator, and Prof K. P. Ramachandran, associate dean, Caledonian College, signed the agreement.
“We wish to teach innovation to our students and would want industry professionals to benefit from the incubation centre that we plan to build,” Prof Ramachandran said.
Present at the MoU signing ceremony were Ms Annie Moses, administrative officer; and Ms Surya Thankom and Mr Sreejith S., technical officers, at the incubator.
The Caledonian College is a leading private higher education institution providing quality technological education in the Sultanate of Oman.
Both parties signed an agreement here on Thursday. The incubator will provide technical assistance and guidance to establish, develop and promote a centre for creativity and innovation at the college in the Sultanate.
First Centre
This joint initiative will result in Oman’s first centre for creativity and innovation, a spokesperson for the Technopark incubator said here.
The arrangement will enable the college to collaborate with companies at the incubator to establish network and connections in Oman.
The latter shall also arrange training for professional development relevant to innovation and entrepreneurship at Caledonian.
Both parties will offer training, special short courses and consultancy services to the industries and commerce ministry in Oman for establishing the innovation centre.
Dr K. C. Chandrasekharan Nair, chief financial officer, Technopark, and secretary and registrar of the Technopark incubator, and Prof K. P. Ramachandran, associate dean, Caledonian College, signed the agreement.
“We wish to teach innovation to our students and would want industry professionals to benefit from the incubation centre that we plan to build,” Prof Ramachandran said.
Present at the MoU signing ceremony were Ms Annie Moses, administrative officer; and Ms Surya Thankom and Mr Sreejith S., technical officers, at the incubator.
The Caledonian College is a leading private higher education institution providing quality technological education in the Sultanate of Oman.
Crompton Greaves acquires Spanish smart grid provider
Mumbai: Crompton Greaves (CG) has acquired 100 per cent stake in Spain-based ZIV for an enterprise value of €150 million.
ZIV is into high value smart grid and automation solutions for industrial and utilities segments.
The company provides digital equipment for grid automation and advanced metering infrastructure.
It operates in over 50 countries, with major operations located in Brazil, Bangalore, Spain and the US.
CG said it has been expanding its activities into the systems arena, providing integrated solutions for utilities and industries and ZIV would complement its offering for grid automation.
Mr Laurent Demortier, Managing Director, said, “With the exciting growth in smart grid around the world, CG is now well positioned to effectively compete in this fast growing segment.”
ZIV is into high value smart grid and automation solutions for industrial and utilities segments.
The company provides digital equipment for grid automation and advanced metering infrastructure.
It operates in over 50 countries, with major operations located in Brazil, Bangalore, Spain and the US.
CG said it has been expanding its activities into the systems arena, providing integrated solutions for utilities and industries and ZIV would complement its offering for grid automation.
Mr Laurent Demortier, Managing Director, said, “With the exciting growth in smart grid around the world, CG is now well positioned to effectively compete in this fast growing segment.”
IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr
Mumbai: Indian Oil Corporation (IOC) will set up its first refinery outside India with an investment of up to Rs 20,000 crore in Sri Lanka. It will thus become the second Indian company to have a refinery abroad.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per day of Iranian light crude oil.
IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.
“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.
Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.
Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per day of Iranian light crude oil.
IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.
“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.
Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.
Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
Solar photovoltaic installations in India cross 1 GW milestone
Chennai: Solar photovoltaic installations in India have crossed the 1,000 MW or 1 gigawatt (GW) mark, data made available by the Ministry of New and Renewable Energy, show.
As at the end of June, India had grid interactive solar PV installed capacity of 1,030.66 MW. Most of the capacities have come in Gujarat. In addition, India has 85.21 MW of off-grid solar PV systems, counting only those that are higher than 1 kW.
Renewable Energy in India crossed another milestone in the first quarter of the current year — total grid interactive renewable energy installations crossed 25,000 MW.
During the quarter, 495 MW were added — 291.70 MW of which came from the wind sector.
This addition took the total installed capacity of renewable power plants in the country to 25,409 MW.
Target for 2012-13
The Ministry has set a target of 4,125 MW of additional green power capacity for the current financial year. This includes 2,500 MW of wind power and 800 MW of solar PV.
It is worthy of note that the targeted wind power capacity is lesser than the achievement of last year, which was 3,164 MW.
However, the wind industry expects that even 2,500 MW would be a tough target to achieve, due to two reasons — removal of two key benefits of ‘accelerated depreciation’ and ‘generation-based incentive’, and the tough operating environment in key States, especially in the windiest State in the country, viz., Tamil Nadu.
As at the end of June, India had grid interactive solar PV installed capacity of 1,030.66 MW. Most of the capacities have come in Gujarat. In addition, India has 85.21 MW of off-grid solar PV systems, counting only those that are higher than 1 kW.
Renewable Energy in India crossed another milestone in the first quarter of the current year — total grid interactive renewable energy installations crossed 25,000 MW.
During the quarter, 495 MW were added — 291.70 MW of which came from the wind sector.
This addition took the total installed capacity of renewable power plants in the country to 25,409 MW.
Target for 2012-13
The Ministry has set a target of 4,125 MW of additional green power capacity for the current financial year. This includes 2,500 MW of wind power and 800 MW of solar PV.
It is worthy of note that the targeted wind power capacity is lesser than the achievement of last year, which was 3,164 MW.
However, the wind industry expects that even 2,500 MW would be a tough target to achieve, due to two reasons — removal of two key benefits of ‘accelerated depreciation’ and ‘generation-based incentive’, and the tough operating environment in key States, especially in the windiest State in the country, viz., Tamil Nadu.
India's GDP will cross the $5 trillion mark by 2020: Report
New Delhi: Business information and knowledge provider Dun & Bradstreet on Friday forecasted that India's GDP will still cross the US$ 5 trillion mark by 2020 despite the economy slowdown, in its second edition of its publication, India 2020 - economy outlook.
The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses.
"India is expected to be more than US$ 5 trillion (current market price) economy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010," the report said. "We expect the current phase of subdued growth to continue till FY15 before the economy moves into a high growth phase," it added.
According to the report, investment activity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final consumption expenditure by FY20, compared to 60.0% in FY11.
Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement: "Subdued growth in the domestic economy owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase."
Dun & Bradstreet also says that investment in physical infrastructure is likely to lead to employment generation, increased production efficiency, reduction in cost of doing business and improved standard of living. The share of the private sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin leveraging their huge potential in terms of vast natural resources and manpower.
The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses.
"India is expected to be more than US$ 5 trillion (current market price) economy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010," the report said. "We expect the current phase of subdued growth to continue till FY15 before the economy moves into a high growth phase," it added.
According to the report, investment activity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final consumption expenditure by FY20, compared to 60.0% in FY11.
Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement: "Subdued growth in the domestic economy owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase."
Dun & Bradstreet also says that investment in physical infrastructure is likely to lead to employment generation, increased production efficiency, reduction in cost of doing business and improved standard of living. The share of the private sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin leveraging their huge potential in terms of vast natural resources and manpower.
Sunday, July 29, 2012
Kavveri Telecom acquires wireless division of WPCS of United States
Kavveri's strategy is to build its core wireless technology groups and establish itself as a global end to end wireless infrastructure solutions company. The buyout enhances Kavveri's market positioning both in the cellular and public safety market segments in the US.
The acquisition will provide Kavveri with a comprehensive range of wireless systems solutions including in-building for public safety and cellular applications, network solutions, mobile data, asset tracking, radio systems, video solutions, wireless infrastructure and integrated business systems.
Shivakumar Reddy, managing director, Kavveri Telecom Products said, The essence of the WPCS International Incorporated acquisition not only enhances our wireless systems solutions capabilities but will expand and strengthen our sales channels for Kavveri Group products in the US market. ''
Uma Reddy, President of the company said, Kavveri is now well positioned to take advantage of the significant growth opportunities in both public safety and cellular in building applications in the US.
Kavveri has been very bullish about inorganic growth in the last many years. The company had made several acquisitions across Europe in the past.
India Show to promote Indian investments in Sri Lanka
New Delhi: The India Show to be held on August 3-5, 2012, is being organised in Colombo, Sri Lanka. The Show considered to be “land of limitless opportunities” with participation of about 100 Indian companies, will be attended by Mr Anand Sharma, the Union Minister for Commerce and Industry, as per an official.
The event is being organised by the Confederation of Indian Industry (CII) with the support of Ministry of Commerce & Industry, Government of India, India Brand Equity Foundation (IBEF), High Commission of India and the Ceylon Chamber of Commerce, Colombo.
The India Show aims to promote Indian technology and services, and is a platform for Indian companies to showcase their excellence, and to promote Indian investments in Sri Lanka. The exhibition will be followed by a business conference. The bilateral trade between the two countries grew by 65 per cent in 2011 to reach US$ 5 billion.
Automotive, engineering, food & beverage, handicrafts, science and technology, service sectors, telecom, petroleum and natural gas, are some of the key sectors to be represented in the event.
The event is being organised by the Confederation of Indian Industry (CII) with the support of Ministry of Commerce & Industry, Government of India, India Brand Equity Foundation (IBEF), High Commission of India and the Ceylon Chamber of Commerce, Colombo.
The India Show aims to promote Indian technology and services, and is a platform for Indian companies to showcase their excellence, and to promote Indian investments in Sri Lanka. The exhibition will be followed by a business conference. The bilateral trade between the two countries grew by 65 per cent in 2011 to reach US$ 5 billion.
Automotive, engineering, food & beverage, handicrafts, science and technology, service sectors, telecom, petroleum and natural gas, are some of the key sectors to be represented in the event.
Yamaha plans to use India as key global hub
Mr Hiroyuki Suzuki, CEO & Managing Director, India Yamaha Motor, told Business Line that while high-end models could be exported to the Asean region and Japan, low-cost models would be the best bet for emerging nations such as Africa. The idea is to optimise the robust ancillary supplier base here which offers the best in quality and a competitive costing structure.
For the moment, Yamaha has little going for it in India from the viewpoint of market share, but Mr Suzuki said all this was set to change during the course of this decade. The company will focus on gearless scooters as part of its strategy to clock volumes, while 150cc plus motorcycles will contribute to the brand-building effort.
“The scooter market is growing very fast in India and we would like to be part of this segment with the Yamaha DNA. We will focus on young women riders initially (with the Ray) before looking at other user categories,” Mr Suzuki said.
Force to reckon with
While it is still in the process of putting its India house in order, Yamaha has been a force to reckon with in Indonesia, Thailand and Vietnam where it wrapped up last year at 4.6 million units. India’s volumes were more modest at a little over five lakh units of which exports took up a third.
The company has targeted 6.4 lakh two-wheelers this calendar where exports will account for 1.9 lakh units. The one-million-mark has been set for 2015 by which time exports will account for 20 per cent (largely to Latin America and Asia). This component is gradually expected to increase post-2015 as Yamaha will focus on producing more in India for exports to Asean and Africa.
According to Mr Suzuki, India’s ranking in the Yamaha map will climb rapidly in the coming years from its present modest standing. This will go in line with its growing importance as a global production hub which may well see the country overtake traditionally strong Yamaha markets in the Asean region. Incidentally, this is also true for Honda which believes India will become its largest two-wheeler market (ahead of Indonesia and Vietnam) from 2015-16.
Procurement base
Yamaha will also use India as one of its four regional procurement bases to source parts for its global two-wheeler operations, the others being Japan, China and Asean. Its home base, Japan, will focus on technologies, while the global operations (primarily its Asean integrated development centres) will become more proactive in product development. India will join this list in good time as an intensely competitive market will require more local R&D efforts.
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