New Delhi: The Indian auto components industry may invest around Rs 70 billion over the next three years on new projects, according to a study by ICRA.
Automobile manufacturers such as Hero MotoCorp, Maruti Suzuki and Ford, plans to establish greenfield facilities in Gujarat, encouraging auto component makers to invest around these facilities. “The above greenfield investments may entail total investments of Rs 7,000 crore to be incurred by auto component manufacturers over the next three years,” highlighted ICRA.
“Over the near term, the trepidation of auto part makers arising from dull automobile demand is likely to remain...the profitability of auto component manufacturers may be hit harder due to their smaller scale of operations and limited operational and financial flexibility,” as per the study.
However, over the medium term factors such as growing thrust on localisation and expanding business in new geographies should allow the industry to grow at a relatively faster pace than the auto OEM segment, the study added.
Success in my Habit
Friday, July 26, 2013
Govt to fund start-ups in electronics space
New Delhi: The Government will soon unveil guidelines for financially supporting start-ups in the field of electronics. It may chip in with 15-25 per cent of the total investment for such projects through fund managers including banks or any large IT company.
“This will be the first time in the country when we will have a system by which the Government can effectively stimulate the private sector in R&D work, because we have one of the lowest intensities of R&D relative to the GDP (less than 1 per cent),” a senior official at the Department of Electronics and Information Technology (DeitY) told Business Line.
Mission mode
Once the guidelines are finalised, the Government will also fix its return on investment (at around 5 per cent). A high-level committee under the chairmanship of R. Chidambaram, Principal Scientific Adviser to the Government, is working on preparing the guidelines.
This will be part of the National Electronics Mission under the National Policy on Electronics 2012, and the investments will be routed through the Government’s ‘Electronic Development Fund’ scheme, which aims to invest $2 billion (around Rs 12,000 crore) by 2020, the official said.
“We expect additional mobilisation of around Rs 30,000 crore — to be raised from the industry by 2020. The industry is nascent right now, so we expect it to start slowly and invest around Rs 50 crore or Rs 100 crore to start with,” he said.
There are many small companies in India which are on the verge of shutting down . The proposed initiative will help such companies survive , he said.
The official said the Government is also open to working with Nasscom to support the start-ups.
He said even though institutions such as the Centre for Development of Advanced Computing , and the IITs are doing their bit it may not be sufficient.
“We need to plant thousands of trees; out of which only a few may survive, but one or two that do survive will give sufficient returns; and that is what venture capitalists do,” he said.
Under the NPE, the Government is hoping the electronics sector will achieve a turnover of around $400 billion by 2020. This involves investment of around $100 billion. It will also help employ around 28 million people by 2020.
The policy includes achieving a turnover of $55 billion for the chip design and embedded software industry, and $80 billion of exports in the sector. Over 200 electronic manufacturing clusters are also proposed to be set up.
“This will be the first time in the country when we will have a system by which the Government can effectively stimulate the private sector in R&D work, because we have one of the lowest intensities of R&D relative to the GDP (less than 1 per cent),” a senior official at the Department of Electronics and Information Technology (DeitY) told Business Line.
Mission mode
Once the guidelines are finalised, the Government will also fix its return on investment (at around 5 per cent). A high-level committee under the chairmanship of R. Chidambaram, Principal Scientific Adviser to the Government, is working on preparing the guidelines.
This will be part of the National Electronics Mission under the National Policy on Electronics 2012, and the investments will be routed through the Government’s ‘Electronic Development Fund’ scheme, which aims to invest $2 billion (around Rs 12,000 crore) by 2020, the official said.
“We expect additional mobilisation of around Rs 30,000 crore — to be raised from the industry by 2020. The industry is nascent right now, so we expect it to start slowly and invest around Rs 50 crore or Rs 100 crore to start with,” he said.
There are many small companies in India which are on the verge of shutting down . The proposed initiative will help such companies survive , he said.
The official said the Government is also open to working with Nasscom to support the start-ups.
He said even though institutions such as the Centre for Development of Advanced Computing , and the IITs are doing their bit it may not be sufficient.
“We need to plant thousands of trees; out of which only a few may survive, but one or two that do survive will give sufficient returns; and that is what venture capitalists do,” he said.
Under the NPE, the Government is hoping the electronics sector will achieve a turnover of around $400 billion by 2020. This involves investment of around $100 billion. It will also help employ around 28 million people by 2020.
The policy includes achieving a turnover of $55 billion for the chip design and embedded software industry, and $80 billion of exports in the sector. Over 200 electronic manufacturing clusters are also proposed to be set up.
Tuesday, July 23, 2013
IT's back: Outsourcing volumes of Indian firms on the upswing
Bangalore: Outsourcing volumes of Indian IT companies in the first quarter have gone up, indicating early signs of bullishness in the $100-billion sector.
This is the first time in the last eight quarters that the volume of outsourcing work has gone up for large and medium-size companies. For example, TCS reported that volumes went up by 6.1 per cent, its largest in the past seven quarters.
Similarly, Infosys, which has had trouble in maintaining volume growth over the past quarters, surprised market watchers by posting a 4.1 per cent rise in its volumes. Cognizant, Wipro and HCL Tech are yet to announce June ending quarter results.
Industry watchers opine that these positive results bode well for the sector but added that regulatory changes such as US Immigration Bill in its current form can have a negative effect. Earlier this month, India Ratings and Research maintained its stable outlook on the Indian IT services industry for the second half of 2013.
Mid-size firms
However, analysts maintain that sustaining this growth momentum and impact of wage hikes would determine whether companies can continue this run. “While volume growth is positive, the key thing to watch out is whether this momentum can be sustained consistently,” said A.K. Prabhakar, Senior Vice- President-Equity Research at Anand Rathi.
Mid-size companies also saw decent volume momentum. iGATE reported 4 per cent growth and MindTree posted 4.1 per cent growth. Hexaware, another mid-size company, saw muted 1.5 per cent increase in its volumes when compared to the previous quarter but said that some of the deals that it is negotiating will spill into the next couple of quarters.
The June quarter also saw management bullish on the deal pipeline across most IT companies and some stability on the pricing it charges to its clients. TCS CEO Chandrasekaran pointed out that the company is seeing a pickup in discretionary IT spending, which comes with better margins.
Mid-size companies also indicated a better deal pipeline and some like Hexaware have indicated an upward revenue guidance for the next quarter, said Rumit Dugar, IT analyst with Religare Institutional Research.
This is the first time in the last eight quarters that the volume of outsourcing work has gone up for large and medium-size companies. For example, TCS reported that volumes went up by 6.1 per cent, its largest in the past seven quarters.
Similarly, Infosys, which has had trouble in maintaining volume growth over the past quarters, surprised market watchers by posting a 4.1 per cent rise in its volumes. Cognizant, Wipro and HCL Tech are yet to announce June ending quarter results.
Industry watchers opine that these positive results bode well for the sector but added that regulatory changes such as US Immigration Bill in its current form can have a negative effect. Earlier this month, India Ratings and Research maintained its stable outlook on the Indian IT services industry for the second half of 2013.
Mid-size firms
However, analysts maintain that sustaining this growth momentum and impact of wage hikes would determine whether companies can continue this run. “While volume growth is positive, the key thing to watch out is whether this momentum can be sustained consistently,” said A.K. Prabhakar, Senior Vice- President-Equity Research at Anand Rathi.
Mid-size companies also saw decent volume momentum. iGATE reported 4 per cent growth and MindTree posted 4.1 per cent growth. Hexaware, another mid-size company, saw muted 1.5 per cent increase in its volumes when compared to the previous quarter but said that some of the deals that it is negotiating will spill into the next couple of quarters.
The June quarter also saw management bullish on the deal pipeline across most IT companies and some stability on the pricing it charges to its clients. TCS CEO Chandrasekaran pointed out that the company is seeing a pickup in discretionary IT spending, which comes with better margins.
Mid-size companies also indicated a better deal pipeline and some like Hexaware have indicated an upward revenue guidance for the next quarter, said Rumit Dugar, IT analyst with Religare Institutional Research.
Corona ties up with Spanish company to sell ORS gel
Ahmedabad: Corona Remedies Pvt Ltd on Monday announced a tie up with Spain’s Medical Diagnostics Aragon (MDA) for the pan-India launch of ‘Rehidrata-T,’ an oral rehydration salt (ORS) formulation in gel form.
The Ahmedabad-based company, whose turnover is expected to increase from Rs 100 crore in 2012-13 to Rs 150 crore in the current fiscal, will import Rehidrata-T for exclusive marketing in India where the ORS market size is about Rs 2,000 crore per annum with a CAGR of 10 per cent. “We are targeting a 10 per cent of this market in the first year,” said Nirav K. Mehta, Marketing Director, Corona Remedies.
Corona, mainly a drug marketing company, which signed a 10-year exclusivity agreement with MDS , is banking on Rehidrata-T’s hydrogel technology recommended by the WHO. The shelf-life of this product is 24 months. The ORS sachet will be available in two palatable tastes with a price tag of Rs 35 each. MDS has a 25 per cent market share of Rehidrata-T in Spain, he said, adding the product is already available in over 30 countries.
Jose Ignacio, CEO of MDA, said Rehidrata-T is a rehydration product with an edge over conventional solid ORS or tetra packs available. Its gel format permits it to be eaten in frozen form also, making it easily consumable by children and patients as a dessert or ice cream. This makes the intake of ORS easier and safer for even chemotherapy radiation patients with mouth sores and is also suitable for certain diabetics.
Corona is also looking to address the bed-wetting problem of children and the elderly by marketing another product imported from MDA.
The company, which also has a manufacturing plant at Solan, Himachal Pradesh, plans to set up another plant at Changodar near Ahmedabad where it has acquired land.
The Ahmedabad-based company, whose turnover is expected to increase from Rs 100 crore in 2012-13 to Rs 150 crore in the current fiscal, will import Rehidrata-T for exclusive marketing in India where the ORS market size is about Rs 2,000 crore per annum with a CAGR of 10 per cent. “We are targeting a 10 per cent of this market in the first year,” said Nirav K. Mehta, Marketing Director, Corona Remedies.
Corona, mainly a drug marketing company, which signed a 10-year exclusivity agreement with MDS , is banking on Rehidrata-T’s hydrogel technology recommended by the WHO. The shelf-life of this product is 24 months. The ORS sachet will be available in two palatable tastes with a price tag of Rs 35 each. MDS has a 25 per cent market share of Rehidrata-T in Spain, he said, adding the product is already available in over 30 countries.
Jose Ignacio, CEO of MDA, said Rehidrata-T is a rehydration product with an edge over conventional solid ORS or tetra packs available. Its gel format permits it to be eaten in frozen form also, making it easily consumable by children and patients as a dessert or ice cream. This makes the intake of ORS easier and safer for even chemotherapy radiation patients with mouth sores and is also suitable for certain diabetics.
Corona is also looking to address the bed-wetting problem of children and the elderly by marketing another product imported from MDA.
The company, which also has a manufacturing plant at Solan, Himachal Pradesh, plans to set up another plant at Changodar near Ahmedabad where it has acquired land.
Italian co Streparava buys out Indian joint venture partner Sansera Engg
Mumbai: Italian auto component maker Streparava Holding SPA said it has bought out its Indian partner Sansera Engineering from the joint venture that makes engine parts. The financials of the deal were not disclosed.
Streparava earlier held 49 per cent equity in the company and the remaining 51 per cent was held by Sansera Engineering Pvt Ltd.
Sansera Engineering is located in Bangalore and will now be Streparava’s wholly-owned Indian venture. Streparava is an Italian manufacturer of auto components and makes rocker arms, chassis components, bearing cups, valve bridges and other powertrain components for the commercial vehicle industry.
Streparava was founded in 1951 and has been operating in Italy for over 60 years. Apart from Italy, Streparava has a presence in Brazil, Spain and China.
The Indian company Sansera Engineering’s commercial production started in 1987. It supplies products to more than 20 customers in India and globally. Its reported consolidated revenue was about Rs 550 crore for the year ended March 31.
In a statement, a spokesperson of Streparava said, “Streparava is committed to strengthening its presence in India beyond the current range of products being produced in the Bangalore facility, to other areas such as driveline and chassis components.”
Tecnova India, a Delhi-based consulting company, was the advisor to the deal.
Streparava earlier held 49 per cent equity in the company and the remaining 51 per cent was held by Sansera Engineering Pvt Ltd.
Sansera Engineering is located in Bangalore and will now be Streparava’s wholly-owned Indian venture. Streparava is an Italian manufacturer of auto components and makes rocker arms, chassis components, bearing cups, valve bridges and other powertrain components for the commercial vehicle industry.
Streparava was founded in 1951 and has been operating in Italy for over 60 years. Apart from Italy, Streparava has a presence in Brazil, Spain and China.
The Indian company Sansera Engineering’s commercial production started in 1987. It supplies products to more than 20 customers in India and globally. Its reported consolidated revenue was about Rs 550 crore for the year ended March 31.
In a statement, a spokesperson of Streparava said, “Streparava is committed to strengthening its presence in India beyond the current range of products being produced in the Bangalore facility, to other areas such as driveline and chassis components.”
Tecnova India, a Delhi-based consulting company, was the advisor to the deal.
OnMobile completes $17.8-m Livewire deal
Mumbai: Bangalore-based value-added services company OnMobile Global Ltd, which had entered into an agreement to acquire the business assets of Boston-based mobile entertainment firm Livewire Mobile for $17.8 million (around Rs 105 crore), has closed the transaction.
Livewire Mobile’s portfolio of mobile music and gaming solutions and its client base, including Sprint, US Cellular and Cricket, will combine with OnMobile’s American customer base, including AT&T, T-Mobile and Rogers, to establish a footprint at six of the top ten mobile operators in North America.
The new combined entity presents a single source solution for integrated value added services (VAS) that will cater to high value subscriber segments, including youth and upwardly mobile professionals.
With global mobile operators struggling to monetise mobile data beyond core data plans, the going would not be easy for the company, given the aggressive competition in the market.
However, Harry Wang, lead mobile analyst from international market research firm, Parks Associates, said that the mobile VAS market represents an attractive opportunity for operators, who need to find an efficient means to aggregate, package, distribute, and manage content and services in order to create a differentiated user experience.
Onmobile Global Ltd is a B2B digital VAS provider, providing mobile entertainment services for top telecom operators in Asia, Africa and Europe.
Livewire Mobile’s portfolio of mobile music and gaming solutions and its client base, including Sprint, US Cellular and Cricket, will combine with OnMobile’s American customer base, including AT&T, T-Mobile and Rogers, to establish a footprint at six of the top ten mobile operators in North America.
The new combined entity presents a single source solution for integrated value added services (VAS) that will cater to high value subscriber segments, including youth and upwardly mobile professionals.
With global mobile operators struggling to monetise mobile data beyond core data plans, the going would not be easy for the company, given the aggressive competition in the market.
However, Harry Wang, lead mobile analyst from international market research firm, Parks Associates, said that the mobile VAS market represents an attractive opportunity for operators, who need to find an efficient means to aggregate, package, distribute, and manage content and services in order to create a differentiated user experience.
Onmobile Global Ltd is a B2B digital VAS provider, providing mobile entertainment services for top telecom operators in Asia, Africa and Europe.
Foodgrain production estimated at 255.36 MT
Pulses Production Estimated at Record 18.45 MT
4th Advance Estimates Of Foodgrain Production for 2012-13 Released
New Delhi: The Government today released the 4th advance estimates of foodgrain production for 2012-13. As per the latest estimates, India has produced 255.36 million tonnes of foodgrains during 2012-13 compared to 259.29 million tonnes in the previous year.
The production estimates for major crops for 2012-13 are as follows:
Total foodgrains – 255.36 million tonnes
Rice – 104.40 million tonnes
Wheat – 92.46 million tonnes
Coarse Cereals – 40.06 million tonnes
Maize – 22.23 million tonnes
Pulses – 18.45 million tonnes
Tur – 3.07 million tonnes
Urad – 1.90 million tonnes
Moong – 1.20 million tonnes
Gram – 8.88 million tonnes
Oilseeds – 31.01 million tonnes
Soyabean – 14.68 million tonnes
Groundnut – 4.75 million tonnes
Rapeseed & mustard – 7.82 million tonnes
Cotton – 34.00 million bales (of 170 kg each)
Sugarcane – 338.96 million tonnes
MP:SS: BK:CP: fourth advance estimates (22.7.2013)
4th Advance Estimates Of Foodgrain Production for 2012-13 Released
New Delhi: The Government today released the 4th advance estimates of foodgrain production for 2012-13. As per the latest estimates, India has produced 255.36 million tonnes of foodgrains during 2012-13 compared to 259.29 million tonnes in the previous year.
The production estimates for major crops for 2012-13 are as follows:
Total foodgrains – 255.36 million tonnes
Rice – 104.40 million tonnes
Wheat – 92.46 million tonnes
Coarse Cereals – 40.06 million tonnes
Maize – 22.23 million tonnes
Pulses – 18.45 million tonnes
Tur – 3.07 million tonnes
Urad – 1.90 million tonnes
Moong – 1.20 million tonnes
Gram – 8.88 million tonnes
Oilseeds – 31.01 million tonnes
Soyabean – 14.68 million tonnes
Groundnut – 4.75 million tonnes
Rapeseed & mustard – 7.82 million tonnes
Cotton – 34.00 million bales (of 170 kg each)
Sugarcane – 338.96 million tonnes
MP:SS: BK:CP: fourth advance estimates (22.7.2013)
Monday, July 22, 2013
Apollo Hospitals to expand capacity in East
Kolkata: Apollo Hospitals plans to add another 1,500 beds in Eastern and North Eastern India and, Bangladesh in next five years. On the cards are opening of four new hospitals – one each in Kolkata, Patna, Raipur and Guwahati.
The Chennai-based healthcare major has 1,500-bed capacity in the East and North East. This includes a 510-bed super-specialty hospital in Eastern Kolkata.
According to the company, plans are afoot to add 200 beds to the existing hospital in Kolkata and build another hospital in western part of the city. The expansion of the existing capacity will be completed by this year-end. “We expect to double our capacity in the East in the next four to five years. In addition to our existing units, we would like to be present in Patna, Raipur and Guwahati,” Rupali Basu, Chief Executive Officer, Eastern Region, Apollo Hospitals, told Business Line on the sidelines of a CII seminar on scope of venture capital and private equity fund in healthcare, on Saturday.
According to Sanjay K. Randhar, President, IndiaVenture Advisors Pvt Ltd, a Piramal Group company, estimated the cost of setting up super-specialty units at Rs 50 lakh to Rs 1 crore per bed in tier-I cities. The cost would vary between Rs 30 lakh and Rs 50 lakh in the tier-II and tier-III cities.
Currently, Apollo Hospitals has six tele-medicine (through video-conferencing system) centres in the region. Plans are afoot to add another 24 over the next couple of years.
The Chennai-based healthcare major has 1,500-bed capacity in the East and North East. This includes a 510-bed super-specialty hospital in Eastern Kolkata.
According to the company, plans are afoot to add 200 beds to the existing hospital in Kolkata and build another hospital in western part of the city. The expansion of the existing capacity will be completed by this year-end. “We expect to double our capacity in the East in the next four to five years. In addition to our existing units, we would like to be present in Patna, Raipur and Guwahati,” Rupali Basu, Chief Executive Officer, Eastern Region, Apollo Hospitals, told Business Line on the sidelines of a CII seminar on scope of venture capital and private equity fund in healthcare, on Saturday.
According to Sanjay K. Randhar, President, IndiaVenture Advisors Pvt Ltd, a Piramal Group company, estimated the cost of setting up super-specialty units at Rs 50 lakh to Rs 1 crore per bed in tier-I cities. The cost would vary between Rs 30 lakh and Rs 50 lakh in the tier-II and tier-III cities.
Currently, Apollo Hospitals has six tele-medicine (through video-conferencing system) centres in the region. Plans are afoot to add another 24 over the next couple of years.
RIL to invest $5.1 bn in US shale gas biz
Mumbai: Reliance Industries Ltd (RIL) will invest $5.1 billion (Rs 30,290 crore) in the next three years in its US shale gas business, taking the total investment in the business to $10.8 billion.
The Mukesh Ambani-promoted conglomerate acquired shale gas assets in the US in 2010 for $3.45 billion and has invested $5.7 billion in shale gas joint ventures till the June 2013 quarter.
Shale gas is natural gas found trapped within shale formations.
“RIL has emerged as a serious shale gas player. We expect RIL to spend another $5.1 billion during calendar years 2013-2016 and the joint ventures will drill 3,846 wells during the life of the project against 514 drilled till 2012-end,” said Niraj Mansingka and Kiran Tulasi of Edelweiss Securities in a report.
The company, which reported its June quarter earnings last week, posted an 84 per cent rise in revenue from its shale gas venture in the US on rising production.
RIL’s shale gas business in the US comprises three upstream joint ventures with Chevron Corp, Pioneer Natural Resources and Carrizo Oil and Gas Inc, and a midstream joint venture with Pioneer.
RIL holds a 40 per cent stake in Atlas Energy; 45 per cent in Pioneer Natural Resources and 60 per cent in Carrizo Oil.
It also holds a 49.9 per cent stake in its midstream project with Pioneer.
The Mumbai-based company has invested in these ventures through its subsidiary, Reliance Holdings USA.
While low natural gas prices post acquisition has dented RIL’s business returns, higher earnings from liquid-rich assets and enhanced capital expenditure efficiency have offset most of the impact, Edelweiss added in its report released after the company announced its results. “RIL is pursuing a high leverage strategy to enhance equity returns in the shale business.”
RIL expects shale gas to contribute 8-10 per cent to consolidated earnings before interest, tax, depreciation and amortisation in 2014-15.
On the domestic front, the company has told analysts it will commence development on coalbed methane (CBM) blocks and the R-series in the eastern offshore KG Basin block after a final approval on the gas price hike.
Though the government has decided to adopt the Rangarajan committee proposal on raising the gas price, companies like RIL are waiting for an official notification on the matter. Indicative pricing has suggested that domestic gas could rise to around $8.4-8.5 a unit with the new mechanism from the current $4.2 unit now.
Batlivala and Karani in their report said RIL expected approval for the R-series to come in three week. “With the satellite field approval already in place, the company plans to commence the development post the final approval on gas price hike. Production from CBM is expected to peak at 5-7 million standard cubic metres per day and will take three years from commencement but will be taken up only after the gas price hike.”
The Mukesh Ambani-promoted conglomerate acquired shale gas assets in the US in 2010 for $3.45 billion and has invested $5.7 billion in shale gas joint ventures till the June 2013 quarter.
Shale gas is natural gas found trapped within shale formations.
“RIL has emerged as a serious shale gas player. We expect RIL to spend another $5.1 billion during calendar years 2013-2016 and the joint ventures will drill 3,846 wells during the life of the project against 514 drilled till 2012-end,” said Niraj Mansingka and Kiran Tulasi of Edelweiss Securities in a report.
The company, which reported its June quarter earnings last week, posted an 84 per cent rise in revenue from its shale gas venture in the US on rising production.
RIL’s shale gas business in the US comprises three upstream joint ventures with Chevron Corp, Pioneer Natural Resources and Carrizo Oil and Gas Inc, and a midstream joint venture with Pioneer.
RIL holds a 40 per cent stake in Atlas Energy; 45 per cent in Pioneer Natural Resources and 60 per cent in Carrizo Oil.
It also holds a 49.9 per cent stake in its midstream project with Pioneer.
The Mumbai-based company has invested in these ventures through its subsidiary, Reliance Holdings USA.
While low natural gas prices post acquisition has dented RIL’s business returns, higher earnings from liquid-rich assets and enhanced capital expenditure efficiency have offset most of the impact, Edelweiss added in its report released after the company announced its results. “RIL is pursuing a high leverage strategy to enhance equity returns in the shale business.”
RIL expects shale gas to contribute 8-10 per cent to consolidated earnings before interest, tax, depreciation and amortisation in 2014-15.
On the domestic front, the company has told analysts it will commence development on coalbed methane (CBM) blocks and the R-series in the eastern offshore KG Basin block after a final approval on the gas price hike.
Though the government has decided to adopt the Rangarajan committee proposal on raising the gas price, companies like RIL are waiting for an official notification on the matter. Indicative pricing has suggested that domestic gas could rise to around $8.4-8.5 a unit with the new mechanism from the current $4.2 unit now.
Batlivala and Karani in their report said RIL expected approval for the R-series to come in three week. “With the satellite field approval already in place, the company plans to commence the development post the final approval on gas price hike. Production from CBM is expected to peak at 5-7 million standard cubic metres per day and will take three years from commencement but will be taken up only after the gas price hike.”
Nissan inks 10-year export agreement with Ennore Port
Chennai: Nissan Motor India, the Indian unit of Japanese auto maker Nissan Motor Co Ltd, today entered into an agreement with Ennore Port Ltd (EPL), according to which it will export at least 60,000 cars a year through the port for the next 10 years.
According to the agreement, signed here today in the presence of Union Shipping Minister G K Vasan, Nissan will get concessions in the wharfage for up to 60,000 cars a year at the rate of 0.36 per cent for every unit. Its cars will be offered free parking space for the first 15 days and will be handled in priority basis in the port.
Nissan exported 54,000 cars in 2010-11, which were increased to 96,000 in 2011-12 and further to 98,000 in 2012-13. In the first quarter of the current financial year (April-June), the company shipped out 14,000 cars.
The company is selling cars in about 100 countries, said Kenichiro Yomura, managing director and chief executive, Nissan Motor India. It hopes to maintain around 100,000 units per annum for exports.
M A Bhaskarachar, chairman and managing director of EPL, said Nissan would get benefits ranging between 10 per cent and 40 per cent of a car value (sliding rates or volume discount). The port, located about 40 km north of Chennai, has developed a general cargo-cum-car terminal at a cost of Rs 140 crore, including a car yard of 35 acres, facilitating the parking of 10,000 cars.
The agreement can be terminated by both parties with a notice of three months from either side. In 2008, Nissan had signed a memorandum of understanding with EPL without any commitment of exports. Nissan was the first exporter of cars since 2010 from the port, which handled about 336,000 cars till now. The port can handle up to 300,000 units a year.
Port to scale down fund-raising plan
Ennore Port Ltd has decided to scale down its fund-raising plan. The port, which originally planned to raise Rs 1,000 crore through tax bonds, decided to raise only Rs 500 crore, said M A Bhaskarachar, chairman and managing director. The port is waiting for the government’s notification, which it hopes to get in two to three months. The funds to be raised would be used to buy 700 acres from the salt department land in and around the Port for future expansions and other activities, he added.
According to the agreement, signed here today in the presence of Union Shipping Minister G K Vasan, Nissan will get concessions in the wharfage for up to 60,000 cars a year at the rate of 0.36 per cent for every unit. Its cars will be offered free parking space for the first 15 days and will be handled in priority basis in the port.
Nissan exported 54,000 cars in 2010-11, which were increased to 96,000 in 2011-12 and further to 98,000 in 2012-13. In the first quarter of the current financial year (April-June), the company shipped out 14,000 cars.
The company is selling cars in about 100 countries, said Kenichiro Yomura, managing director and chief executive, Nissan Motor India. It hopes to maintain around 100,000 units per annum for exports.
M A Bhaskarachar, chairman and managing director of EPL, said Nissan would get benefits ranging between 10 per cent and 40 per cent of a car value (sliding rates or volume discount). The port, located about 40 km north of Chennai, has developed a general cargo-cum-car terminal at a cost of Rs 140 crore, including a car yard of 35 acres, facilitating the parking of 10,000 cars.
The agreement can be terminated by both parties with a notice of three months from either side. In 2008, Nissan had signed a memorandum of understanding with EPL without any commitment of exports. Nissan was the first exporter of cars since 2010 from the port, which handled about 336,000 cars till now. The port can handle up to 300,000 units a year.
Port to scale down fund-raising plan
Ennore Port Ltd has decided to scale down its fund-raising plan. The port, which originally planned to raise Rs 1,000 crore through tax bonds, decided to raise only Rs 500 crore, said M A Bhaskarachar, chairman and managing director. The port is waiting for the government’s notification, which it hopes to get in two to three months. The funds to be raised would be used to buy 700 acres from the salt department land in and around the Port for future expansions and other activities, he added.
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