Mumbai: ITD Cementation has bagged orders worth Rs 1,500 crore in the March quarter.
The company received two orders from the Public Works Department, New Delhi, for comprehensive development of corridor (Outer Ring Road) between Mangolpuri to Madhuban Chowk valued at Rs 290 crore and between Madhuban Chowk and Mukarba Chowk valued at Rs 280 crore.
Other orders include construction of a six-lane link road and flyover connecting NH 24 with NH 58 for Ghaziabad Vikas Pradhikaran worth Rs 115 crore while IIC, a Indiabulls group company, has given a contract worth Rs 123 crore for complete civil and structural work for a raw water pump house at Eklahara Barrage for their 1350 MW power plant being set up at Sinnar, SEZ, Nasik.
In addition, ITD Cementation in joint venture with its parent, Italian-Thai Development Public Company, Thailand has received Rs 752- crore order from the Delhi Metro Rail Corporation.
Success in my Habit
Friday, April 5, 2013
Finolex plans fourth plant for PVC pipes
Pune: Finolex Industries, a manufacturer of PVC resin and pipes, is planning to set up a fourth facility to make pipes in India, said Executive Chairman Prakash Chhabria.
The company’s third plant at Masar in Gujarat, and its first outside of Maharashtra has just begun commercial production.
It will cater to the requirements of Gujarat and the North Indian states.
Built with an investment of Rs 100 crore, the second phase of new plant will get commissioned during the current fiscal, after which it will add 50,000 tonnes a year to Finolex’s current capacity of 150,000 tonnes.
“We are planning to set up a fourth plant for PVC pipes, and this should be up and about in the next 24-30 months,” Chhabria said.
He added that the locations being considered for it were Nagpur, Masar or a place in North-East.
The annual capacity of this plant too, will be around 50,000 tonnes and will cater to domestic requirements, he said.
Finolex Industries, which has a pan-India presence, currently has a share of around 20 per cent in the PVC pipes market. Chhabria said that amongst the new products being considered is window profiles to replace wood or aluminium.
The company has two other plants for PVC pipes located in Urse near Pune and Ratnagiri on the western coast where it also has a plant to make its main raw material - PVC resin - mostly for its own consumption.
The company’s third plant at Masar in Gujarat, and its first outside of Maharashtra has just begun commercial production.
It will cater to the requirements of Gujarat and the North Indian states.
Built with an investment of Rs 100 crore, the second phase of new plant will get commissioned during the current fiscal, after which it will add 50,000 tonnes a year to Finolex’s current capacity of 150,000 tonnes.
“We are planning to set up a fourth plant for PVC pipes, and this should be up and about in the next 24-30 months,” Chhabria said.
He added that the locations being considered for it were Nagpur, Masar or a place in North-East.
The annual capacity of this plant too, will be around 50,000 tonnes and will cater to domestic requirements, he said.
Finolex Industries, which has a pan-India presence, currently has a share of around 20 per cent in the PVC pipes market. Chhabria said that amongst the new products being considered is window profiles to replace wood or aluminium.
The company has two other plants for PVC pipes located in Urse near Pune and Ratnagiri on the western coast where it also has a plant to make its main raw material - PVC resin - mostly for its own consumption.
Crompton Greaves bags Dutch order
Mumbai: Crompton Greaves (CG), in consortium, has received a Rs 239-crore order for the construction of an offshore high voltage substation for a wind farm in the Netherlands. The contract is from Van Oord Offshore Wind Projects. The partners in the consortium are Cofely Fabricom and Iemants. Crompton Greaves said it will design, engineer and manufacture the overall electrical system.
The project is expected to be completed by August 2015. Laurent Demortier, Chief Executive Officer and Managing Director, CG, said: “The development of reliable and cost-effective grid connection solutions for the rapidly growing renewable sector is one of the key priorities for CG. We not only have developed a unique design, but also a cost-efficient supply chain for serving this growing market segment.”
The project is expected to be completed by August 2015. Laurent Demortier, Chief Executive Officer and Managing Director, CG, said: “The development of reliable and cost-effective grid connection solutions for the rapidly growing renewable sector is one of the key priorities for CG. We not only have developed a unique design, but also a cost-efficient supply chain for serving this growing market segment.”
Production units in India are best in the world, say car manufacturers
Chennai: Multinational automotive plants in India rank among the top across the world in terms of their productivity and quality. Top auto MNCs like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. Despite fighting it out with factories in much larger markets - including the US and China - some of these plants fare better cranking out cars at upwards of 98-99% efficiency.
Take Hyundai Motor India (HMI) which has two plants in its Sriperumbudur facility near Chennai. The newer, second plant actually ranks number one in terms of productivity and quality according to Bo Shin Seo, CEO & MD, Hyundai Motor India (HMI). "Hyundai has plants in China, Russia, Brazil, the US (Alabama), Turkey and Czech Republic and in terms of operational average productivity ratio we are number one," he added. HMI's second plant makes two models and routinely hits average productivity ratio of upwards of 99.7%.
Of course a number of the bigger plants crank out many more volumes - Hyundai's China plant for example produces 4-5 different models while the newest factory in Brazil cranks out just one model but at "very high productivity ratio," he added. Between its two plants Hyundai can expand its production to hit 700,000 units on a three-shift basis though currently the volumes are lower due to the demand skid in the marketplace.
Hyundai isn't the only MNC to hit top spot with its Indian factory. Take Toyota Kirloskar Motor (TKM) which has invested around Rs 4700 crore to build two plants at its facility near Bangalore. Like HMI, TKM's plants too rank right up there among Toyota's global pecking order. "In the last three years we have had an internal shipping quality audit wherein a global team comes and checks vehicles randomly at the shipping yard for defects. On that basis, they have come to conclusion that TKM plants are the number one alongside Toyota's China and Thailand facilities," stated Shekar Vishwanathan, vice chairman, TKM.
Like the Hyundai plant, the TKM factories too run at 98-99% efficiency. "Efficiency is measured by both the speed of the conveyor belt as well as the ability to change the speed of the line according to demand variation," said Vishwanathan. "We make 600 vehicles per day over two shifts." The total capacity in the two plants is around 310,000 units over 278 working days in a year.
In terms of pecking order ranks though car marketleader Maruti hogs the lion's share of parent Suzuki's global production. With its 1.5 million unit a year current manufacturing capacity, Maruti is Suzuki International's largest production centre worldwide.
India comprises just short of half of Suzuki's global sales volumes and commands around 25% of its total sales revenue, said a Maruti executive. Maruti Suzuki plans to add another 250,000 units this year, with its new factory in Manesar at a cost of Rs 2100 crore. That plus the proposed Rs 4000 crore Gujarat plant - which will add another 250,000 unit capacity by 2015 - will take Maruti's total production numbers to two million units a year. Already Maruti's India sales are more than what the Japanese company sells in its home market in Japan.
Take Hyundai Motor India (HMI) which has two plants in its Sriperumbudur facility near Chennai. The newer, second plant actually ranks number one in terms of productivity and quality according to Bo Shin Seo, CEO & MD, Hyundai Motor India (HMI). "Hyundai has plants in China, Russia, Brazil, the US (Alabama), Turkey and Czech Republic and in terms of operational average productivity ratio we are number one," he added. HMI's second plant makes two models and routinely hits average productivity ratio of upwards of 99.7%.
Of course a number of the bigger plants crank out many more volumes - Hyundai's China plant for example produces 4-5 different models while the newest factory in Brazil cranks out just one model but at "very high productivity ratio," he added. Between its two plants Hyundai can expand its production to hit 700,000 units on a three-shift basis though currently the volumes are lower due to the demand skid in the marketplace.
Hyundai isn't the only MNC to hit top spot with its Indian factory. Take Toyota Kirloskar Motor (TKM) which has invested around Rs 4700 crore to build two plants at its facility near Bangalore. Like HMI, TKM's plants too rank right up there among Toyota's global pecking order. "In the last three years we have had an internal shipping quality audit wherein a global team comes and checks vehicles randomly at the shipping yard for defects. On that basis, they have come to conclusion that TKM plants are the number one alongside Toyota's China and Thailand facilities," stated Shekar Vishwanathan, vice chairman, TKM.
Like the Hyundai plant, the TKM factories too run at 98-99% efficiency. "Efficiency is measured by both the speed of the conveyor belt as well as the ability to change the speed of the line according to demand variation," said Vishwanathan. "We make 600 vehicles per day over two shifts." The total capacity in the two plants is around 310,000 units over 278 working days in a year.
In terms of pecking order ranks though car marketleader Maruti hogs the lion's share of parent Suzuki's global production. With its 1.5 million unit a year current manufacturing capacity, Maruti is Suzuki International's largest production centre worldwide.
India comprises just short of half of Suzuki's global sales volumes and commands around 25% of its total sales revenue, said a Maruti executive. Maruti Suzuki plans to add another 250,000 units this year, with its new factory in Manesar at a cost of Rs 2100 crore. That plus the proposed Rs 4000 crore Gujarat plant - which will add another 250,000 unit capacity by 2015 - will take Maruti's total production numbers to two million units a year. Already Maruti's India sales are more than what the Japanese company sells in its home market in Japan.
AMCs' average assets rise 19.5% in FY13
Mumbai: India’s asset management companies (AMCs) have seen a rise of 19.5 per cent in their average assets under management (AUM) in FY13. After dipping to less than Rs 7 lakh crore in the previous financial year, the sector has made a smart comeback —thanks to the high inflows in the debt funds and gains in the stock indices.
Interestingly, majority of the top 10 players have outperformed the industry's growth with a wide margin. For instance, Birla Sun Life Mutual Fund, ICICI Prudential MF, Kotak MF, IDFC MF and SBI MF, among others, registered a growth of between 25 and 40 per cent during the year. On the other hand, giants such as HDFC MF and Reliance MF managed to post a growth of 13 per cent and 21 per cent, respectively.
Srinivas Jain, chief marketing officer of SBI Mutual Fund, the sixth largest fund house with an average AUM of close to Rs 55,000 crore, says, “In FY13, we had good flows into our long-term fixed income funds and I believe that is true with the overall industry as well.” The fund house registered a whopping rise of 30.6 per cent in its AUM during the year.
According to the latest statistics available from industry body Association of Mutual Funds in India (Amfi), the sector’s average assets stood at Rs 8.16 lakh crore as on March 31, 2013, compared to Rs 6.64 lakh crore a year ago. Whereas in the quarter ended March 31, 2013, average assets grew a little less than a percentage point.
Reliance Mutual Fund, whose assets had dipped to below Rs 80,000 crore, came back strongly and inched close to its lost Rs 1-lakh crore mark with assets at Rs 94,580 crore.
Top officials at Reliance MF told Business Standard the fund house’s continued focus on retail has helped. “Our focus on non-liquid is helping us improve,” said an official.
According to Dhruva Chatterji, senior research analyst at Morningstar India, high flows in the intermediate to long-term bond funds in the debt category pushed up assets of the industry.
“Till February, our study shows there is a rise of 600 per cent in the assets of bond funds (year-on-year). Most of the assets inflows came in the second half of FY13 as expectations built up for rate cuts.”
Gilt funds, which invest primarily in government securities, attracted a consistent sum of Rs 1,000 crore for several months in the second half. “Of late, with a rise of one per cent point in short-term rates, we are also witnessing money flowing into the liquid funds with duration of three to six months,” added Chatterji.
According to experts, despite 11 months of net outflows from the equity segment during the year, rise in stock markets also helped push up the average assets of equity funds to a certain extent.
Interestingly, majority of the top 10 players have outperformed the industry's growth with a wide margin. For instance, Birla Sun Life Mutual Fund, ICICI Prudential MF, Kotak MF, IDFC MF and SBI MF, among others, registered a growth of between 25 and 40 per cent during the year. On the other hand, giants such as HDFC MF and Reliance MF managed to post a growth of 13 per cent and 21 per cent, respectively.
Srinivas Jain, chief marketing officer of SBI Mutual Fund, the sixth largest fund house with an average AUM of close to Rs 55,000 crore, says, “In FY13, we had good flows into our long-term fixed income funds and I believe that is true with the overall industry as well.” The fund house registered a whopping rise of 30.6 per cent in its AUM during the year.
According to the latest statistics available from industry body Association of Mutual Funds in India (Amfi), the sector’s average assets stood at Rs 8.16 lakh crore as on March 31, 2013, compared to Rs 6.64 lakh crore a year ago. Whereas in the quarter ended March 31, 2013, average assets grew a little less than a percentage point.
Reliance Mutual Fund, whose assets had dipped to below Rs 80,000 crore, came back strongly and inched close to its lost Rs 1-lakh crore mark with assets at Rs 94,580 crore.
Top officials at Reliance MF told Business Standard the fund house’s continued focus on retail has helped. “Our focus on non-liquid is helping us improve,” said an official.
According to Dhruva Chatterji, senior research analyst at Morningstar India, high flows in the intermediate to long-term bond funds in the debt category pushed up assets of the industry.
“Till February, our study shows there is a rise of 600 per cent in the assets of bond funds (year-on-year). Most of the assets inflows came in the second half of FY13 as expectations built up for rate cuts.”
Gilt funds, which invest primarily in government securities, attracted a consistent sum of Rs 1,000 crore for several months in the second half. “Of late, with a rise of one per cent point in short-term rates, we are also witnessing money flowing into the liquid funds with duration of three to six months,” added Chatterji.
According to experts, despite 11 months of net outflows from the equity segment during the year, rise in stock markets also helped push up the average assets of equity funds to a certain extent.
Thursday, April 4, 2013
Mukesh Ambani's 4G arm Reliance Jio inks Rs 1,200 crore pact with Anil Ambani's RCom
Mumbai: The Ambani brothers announced their first collaboration after splitting their father's business enterprise eight years ago, with Mukesh, the chairman of Reliance Industries, agreeing to use his younger sibling's optic fibre network to launch his mobile venture.
The first business collaboration since the billionaire brothers scrapped no-compete agreements, which prevented Mukesh from entering industries in which Anil was present, three years ago may eventually extend to other sectors such as power and entertainment, a number of analysts said.
As part of the deal announced on Tuesday, Reliance Jio Infocomm, the telecom arm of RIL, will get access to Reliance Communications' national and international optic fibre for an up-front payment of 1,200 crore. The amount will be paid to RCOM as soon as it readies the network for RIL's use.
More telecom infrastructure-sharing deals are in the works, according to the announcement to BSE. This may largely involve RIL's fourth-generation services riding on telecom towers owned by Reliance Communications, which is owned by Anil.
Stocks of companies belonging to Anil Ambani, which operate under the Reliance Group brand, all benefitted from the announcement. RCOM shares went up 11% at 63.30 apiece while Reliance Power, Reliance Mediaworks and Reliance Capital all went up between 4-5%.
"We believe the deal is a positive for Reliance Communications," according to JPMorgan Asia Pacific Equity Research.
However, it is a token positive at best in the absence of further co-operative steps. The onetime fee of Rs1,200 crore will not produce any change whatsoever in RCOM's net debt to EBITDA ratio (nominally changes from 5.6x to 5.5x).
The recurring cash flows/revenues will start to flow when Reliance Jio will launch 4G services, the time frame for which is yet to be disclosed. Hence, the revenue potential of this single deal is unlikely to move the needle for RCOM's financials (revenues, debt ratios among others)," JPMorgan Asia Pacific Equity Research said.
"Logically it would mean that RIL has chosen not to roll out but lease infrastructure because if it was building itself, the logical thing would be to have its own backbone," said Kamlesh Bhatia, principal analyst at research firm Gartner. However, an official at RIL said the company still plans to build some towers and lay some optic fibre of its own. RCOM will, as a matter of reciprocity, have access to that infrastructure, according to the joint statement.
A senior tower industry official, who asked not to be named, said RIL would largely share RCOM's towers following this announcement given that optic fibre is typically laid between towers and would not be connected to towers of other operators.
It is also a lengthy and daunting task to build more towers along an existing network, the official said. Talks of such a deal being struck have been doing the rounds since October 2010, shortly after RIL won its licence in the May 2010 auctions. ET had first reported concrete steps towards an agreement in November 2011, after which talks went cold.
In January this year, ET again reported revival of the talks. In the new round of negotiations, RIL pushed RCOM hard on pricing, a reading of the negotiations three analysts who asked not to be named agreed with. The indefinite sharing of optic fibre at Rs1 lakh per 1,000 km is probably the lowest ever, they said. Jio Infocomm's service launch has been long awaited as a potential disrupter in pricing of data service offerings.
However, RIL seems to have been dragging its feet so far, amid confusion and lack of clarity on the final rollout plan, according to industry officials. This deal is a first step in the direction of finalisation of concrete plans, said an RIL official.
The company has also tied up with Samsung, Huawei and ZTE for 4G radio equipment for its launch. However, the end devices using LTE 4G technology in the 2,300 MHz frequency are still few.
The first business collaboration since the billionaire brothers scrapped no-compete agreements, which prevented Mukesh from entering industries in which Anil was present, three years ago may eventually extend to other sectors such as power and entertainment, a number of analysts said.
As part of the deal announced on Tuesday, Reliance Jio Infocomm, the telecom arm of RIL, will get access to Reliance Communications' national and international optic fibre for an up-front payment of 1,200 crore. The amount will be paid to RCOM as soon as it readies the network for RIL's use.
More telecom infrastructure-sharing deals are in the works, according to the announcement to BSE. This may largely involve RIL's fourth-generation services riding on telecom towers owned by Reliance Communications, which is owned by Anil.
Stocks of companies belonging to Anil Ambani, which operate under the Reliance Group brand, all benefitted from the announcement. RCOM shares went up 11% at 63.30 apiece while Reliance Power, Reliance Mediaworks and Reliance Capital all went up between 4-5%.
"We believe the deal is a positive for Reliance Communications," according to JPMorgan Asia Pacific Equity Research.
However, it is a token positive at best in the absence of further co-operative steps. The onetime fee of Rs1,200 crore will not produce any change whatsoever in RCOM's net debt to EBITDA ratio (nominally changes from 5.6x to 5.5x).
The recurring cash flows/revenues will start to flow when Reliance Jio will launch 4G services, the time frame for which is yet to be disclosed. Hence, the revenue potential of this single deal is unlikely to move the needle for RCOM's financials (revenues, debt ratios among others)," JPMorgan Asia Pacific Equity Research said.
"Logically it would mean that RIL has chosen not to roll out but lease infrastructure because if it was building itself, the logical thing would be to have its own backbone," said Kamlesh Bhatia, principal analyst at research firm Gartner. However, an official at RIL said the company still plans to build some towers and lay some optic fibre of its own. RCOM will, as a matter of reciprocity, have access to that infrastructure, according to the joint statement.
A senior tower industry official, who asked not to be named, said RIL would largely share RCOM's towers following this announcement given that optic fibre is typically laid between towers and would not be connected to towers of other operators.
It is also a lengthy and daunting task to build more towers along an existing network, the official said. Talks of such a deal being struck have been doing the rounds since October 2010, shortly after RIL won its licence in the May 2010 auctions. ET had first reported concrete steps towards an agreement in November 2011, after which talks went cold.
In January this year, ET again reported revival of the talks. In the new round of negotiations, RIL pushed RCOM hard on pricing, a reading of the negotiations three analysts who asked not to be named agreed with. The indefinite sharing of optic fibre at Rs1 lakh per 1,000 km is probably the lowest ever, they said. Jio Infocomm's service launch has been long awaited as a potential disrupter in pricing of data service offerings.
However, RIL seems to have been dragging its feet so far, amid confusion and lack of clarity on the final rollout plan, according to industry officials. This deal is a first step in the direction of finalisation of concrete plans, said an RIL official.
The company has also tied up with Samsung, Huawei and ZTE for 4G radio equipment for its launch. However, the end devices using LTE 4G technology in the 2,300 MHz frequency are still few.
Infosys inks 5-year pact with European energy trading house
Bangalore: Infosys has signed a five-year agreement with RWE Supply and Trading (RWEST), a leading European energy trading house to provide technology services. In a statement, the software exporter said these technology services will be used power its trading platform systems. The deal is over five years and according to Infosys officials, it is based on ‘gain share’, which essentially means that Infosys gets revenues based on RWEST’s transactions on this platform. RWEST is based out of Essen in Germany and has trading floors in London and Swindon as well as trading floors of subsidiaries and affiliates in Den Bosch, Geneva, Singapore and New York. Also, Infosys will jointly invest in a framework to identify and implement business and technology projects that will create business efficiencies, drive growth from new markets and commodities and deliver measurable benefits, according to Infosys officials.
India MARS Mission promising for NASA-ISRO collaboration
Kolkata: Sunita Williams on Tuesday revived hopes on collaboration between National Aeronautics and Space Administration (NASA) and Indian Space Research Organisation (ISRO) in space exploration missions.
On her visit to Kolkata at the invitation of National Council of Science Museums, the Indian-American astronaut said that she would not only meet with students, but would like to show them the opportunities in space research and missions.
“People (scientists) from NASA and ISRO are talking together. I see that progressing,” Williams told reporters when asked about the two organisations’ plans to cooperate on Moon and Mars missions in future.
India’s Mars Mission, which is scheduled to be launched in November this year, might be promising for the space research organisations to work together.
On her visit to Kolkata at the invitation of National Council of Science Museums, the Indian-American astronaut said that she would not only meet with students, but would like to show them the opportunities in space research and missions.
“People (scientists) from NASA and ISRO are talking together. I see that progressing,” Williams told reporters when asked about the two organisations’ plans to cooperate on Moon and Mars missions in future.
India’s Mars Mission, which is scheduled to be launched in November this year, might be promising for the space research organisations to work together.
New norms for FII investments in govt, corporate bonds
New Delhi: The Finance Ministry has created two new sub-limits to enable foreign institutional investors (FIIs) park their funds in short-term papers of Government securities (G-secs) and corporate bonds.
In the G-sec bucket, where the overall FII investment limit is now pegged at $25 billion, the Finance Ministry has now carved out a sub-limit of $5.5 billion for foreign investment in short-term papers such as treasury bills.
Similarly, in the case of corporate bonds, a new sub-limit of $3.5 billion has been created for foreign investment in short-term papers such as commercial papers. This sub-limit has been carved out of the overall $51 billion limit for corporate bonds.
These sub-limits have been carved out based on the current holdings of such short-term instruments by FIIs and have been provided so that existing investments are not adversely affected.
The two sub-limits form part of the new investment policy for foreign investment in G-secs and corporate bonds.
Finance Minister P. Chidambaram announced the new policy on March 23 at the National Editors’ conference in the capital.
To encourage greater foreign investments in rupee-denominated debt instruments, the Government has simplified the framework of FII debt limits and also drawn a perspective plan for enhancement of these debt limits in the future. All the existing debt-limits have been merged into the two broad categories. The new approach has come into effect from April 1.
In the G-sec bucket, where the overall FII investment limit is now pegged at $25 billion, the Finance Ministry has now carved out a sub-limit of $5.5 billion for foreign investment in short-term papers such as treasury bills.
Similarly, in the case of corporate bonds, a new sub-limit of $3.5 billion has been created for foreign investment in short-term papers such as commercial papers. This sub-limit has been carved out of the overall $51 billion limit for corporate bonds.
These sub-limits have been carved out based on the current holdings of such short-term instruments by FIIs and have been provided so that existing investments are not adversely affected.
The two sub-limits form part of the new investment policy for foreign investment in G-secs and corporate bonds.
Finance Minister P. Chidambaram announced the new policy on March 23 at the National Editors’ conference in the capital.
To encourage greater foreign investments in rupee-denominated debt instruments, the Government has simplified the framework of FII debt limits and also drawn a perspective plan for enhancement of these debt limits in the future. All the existing debt-limits have been merged into the two broad categories. The new approach has come into effect from April 1.
Hero MotoCorp starts ops in Africa, LatAm
New Delhi: The country’s largest two-wheeler maker, Hero MotoCorp, on Monday said it had commenced operations in Africa, Latin and Central America.
Pawan Munjal, managing director & chief executive officer, Hero MotoCorp, said: “We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa.”
The company is set to despatch the first lot of two-wheelers to Kenya later this month.
It has already appointed new distributors and channel partners in these markets, where retail sales of the Hero two-wheelers is likely to commence in the first quarter of this financial year. Hero motorcycles to be sold in these markets include a mix of models from the 100cc and 125cc range.
Hero MotoCorp has earmarked Rs 1100 crore as capital expenditure for the current financial year. It includes an investment of about Rs 600 crore on the company’s upcoming fourth plant and global parts centre at Neemrana, and Rs 100-150 crore on a state-of-the-art integrated R&D centre at Kukas (near Jaipur in Rajasthan).
These initiatives are in line with Hero MotoCorp’s vision of reaching a total of 10-million unit volumes in a few years’ time, and garnering a million units — 10 per cent of that — from international business. The company currently registers around 2.5 per cent of its volumes from sales in overseas markets.
To meet this objective, the company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia.
Colombia is the only country in Latin America where Hero MotoCorp currently exports to. The other international markets where Hero two-wheelers are sold include Sri Lanka, Bangladesh and Nepal.
Pawan Munjal, managing director & chief executive officer, Hero MotoCorp, said: “We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa.”
The company is set to despatch the first lot of two-wheelers to Kenya later this month.
It has already appointed new distributors and channel partners in these markets, where retail sales of the Hero two-wheelers is likely to commence in the first quarter of this financial year. Hero motorcycles to be sold in these markets include a mix of models from the 100cc and 125cc range.
Hero MotoCorp has earmarked Rs 1100 crore as capital expenditure for the current financial year. It includes an investment of about Rs 600 crore on the company’s upcoming fourth plant and global parts centre at Neemrana, and Rs 100-150 crore on a state-of-the-art integrated R&D centre at Kukas (near Jaipur in Rajasthan).
These initiatives are in line with Hero MotoCorp’s vision of reaching a total of 10-million unit volumes in a few years’ time, and garnering a million units — 10 per cent of that — from international business. The company currently registers around 2.5 per cent of its volumes from sales in overseas markets.
To meet this objective, the company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia.
Colombia is the only country in Latin America where Hero MotoCorp currently exports to. The other international markets where Hero two-wheelers are sold include Sri Lanka, Bangladesh and Nepal.
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