Pune: Venus Remedies Limited has signed a memorandum of understanding with South African pharmaceutical firm Austell Laboratories to exclusively out license its flagship product Elores in South Africa.
The antibiotic adjuvant entity effectively counters serious hospital-acquired infections caused by multidrug-resistant extended-spectrum beta-lactamase (ESBL) and metallo-beta-lactamise (MBl)-producing gram negative bacteria, the company said in a filing to the BSE.
Elores is likely to be launched in South Africa by mid 2015. There the overall systemic antibacterial market is worth $ 275 million and growing at a CAGR of 10.5%. The drug will cater to the needs of around 40% segment of this market.
Venus Remedies is projected to generate cumulative revenue of $ 20 million within five years of the launch of Elores in SouthAfrica. Globally, the systemic antibacterial market, which is growing at a CAGR of 7.2%, is set to reach $ 44 billion by 2016.
The infections caused by multidrug-resistant bacteria which Elores is capable of fighting comprise 25% of this market, thus creating a tremendous opportunity for Venus Remedies, the company has said
Success in my Habit
Wednesday, December 11, 2013
Centre sets up National Institute of Solar Energy
Chennai: The Central Government has set up an autonomous institute -- the National Institute of Solar Energy (NISE) -- under the administrative control of the ministry of new and renewable energy (MNRE).
The NISE, which will function as the apex centre for research and technology development and related activities in the area of solar energy technologies in the country, has been established by converting the existing Solar Energy Centre in Gwal Pahari village, Gurgaon. It was registered under the Haryana Societies Registration Act on October 24.
Its affairs would be managed by a governing council to be headed by secretary of the MNRE and an executive committee headed by the director general, according to an official statement released on Monday.
The institute would assist the MNRE and perform various tasks under the Jawaharlal Nehru National Solar Mission (JNNSM), which targets deployment of 20,000MW of grid-connected solar power by 2022 in three phases. About 1685MW of solar power capacity had been installed during the phase I of the JNNSM against the target of 1100MW, the release said.
The NISE, which will function as the apex centre for research and technology development and related activities in the area of solar energy technologies in the country, has been established by converting the existing Solar Energy Centre in Gwal Pahari village, Gurgaon. It was registered under the Haryana Societies Registration Act on October 24.
Its affairs would be managed by a governing council to be headed by secretary of the MNRE and an executive committee headed by the director general, according to an official statement released on Monday.
The institute would assist the MNRE and perform various tasks under the Jawaharlal Nehru National Solar Mission (JNNSM), which targets deployment of 20,000MW of grid-connected solar power by 2022 in three phases. About 1685MW of solar power capacity had been installed during the phase I of the JNNSM against the target of 1100MW, the release said.
Cabinet okays move on spectrum pricing
New Delhi: The Cabinet has approved the Empowered Group of Minister’s decision on spectrum pricing.
The ministerial panel headed by Finance Minister P. Chidambaram had endorsed the Telecom Commission’s proposal to fix reserve price for the 1800 MHz and 900 MHz spectrum bands.
The decision by the Cabinet clears the decks for the Department of Telecommunications to come out with the Notice Inviting Application for the upcoming spectrum auction.
The Finance Ministry has set a target of Rs 40,000 crore from the sale of spectrum in January.
The ministerial panel headed by Finance Minister P. Chidambaram had endorsed the Telecom Commission’s proposal to fix reserve price for the 1800 MHz and 900 MHz spectrum bands.
The decision by the Cabinet clears the decks for the Department of Telecommunications to come out with the Notice Inviting Application for the upcoming spectrum auction.
The Finance Ministry has set a target of Rs 40,000 crore from the sale of spectrum in January.
India, UAE to sign investment protection pact next week
New Delhi: India and the United Arab Emirates are expected to sign a Bilateral Investment Promotion and Protection agreement (BIPA) during the official visit of Sheikh Abdullah Bin Zayed Al Nahyan, UAE Foreign Minister, which begins on December 12, the Ministry of External Affairs announced on Monday.
The signing of the agreement is likely to facilitate fresh investments from the UAE, which is India’s 10 {+t} {+h} largest foreign investor.
At the moment there are apprehensions in the Arab world about India’s investment protection regime, as some investments from the UAE in India, including Etisalat, DP World and TAQA, ran into difficulties.
The absence of a BIPA, which is expected to provide sovereign guarantees for investments from the UAE here, almost derailed the Jet Airways’ attempts to sell a stake to Abu Dhabi-based Etihad Airways, which was firmed up in April.
Before the deal was inked, an Etihad delegation, which included Chief Executive Officer James Hogan, visited India and met the Ministers for Finance, Commerce and Civil Aviation to seek assurances on the safety of the investment.
UAE is India’s largest trading partner, with bilateral trade having crossed $74 billion in 2012-13. It is also the tenth largest investor in India in terms of foreign direct investments and contributes significantly to India’s fuel needs. It is the fifth largest supplier of crude oil to India.
Sheik Zayed is also the Managing Director of the sovereign wealth fund of Abu Dhabi Investment Authority (ADIA). The Sovereign Wealth Fund Institute, a research firm, puts ADIA’s assets at $627 billion.
The signing of the agreement is likely to facilitate fresh investments from the UAE, which is India’s 10 {+t} {+h} largest foreign investor.
At the moment there are apprehensions in the Arab world about India’s investment protection regime, as some investments from the UAE in India, including Etisalat, DP World and TAQA, ran into difficulties.
The absence of a BIPA, which is expected to provide sovereign guarantees for investments from the UAE here, almost derailed the Jet Airways’ attempts to sell a stake to Abu Dhabi-based Etihad Airways, which was firmed up in April.
Before the deal was inked, an Etihad delegation, which included Chief Executive Officer James Hogan, visited India and met the Ministers for Finance, Commerce and Civil Aviation to seek assurances on the safety of the investment.
UAE is India’s largest trading partner, with bilateral trade having crossed $74 billion in 2012-13. It is also the tenth largest investor in India in terms of foreign direct investments and contributes significantly to India’s fuel needs. It is the fifth largest supplier of crude oil to India.
Sheik Zayed is also the Managing Director of the sovereign wealth fund of Abu Dhabi Investment Authority (ADIA). The Sovereign Wealth Fund Institute, a research firm, puts ADIA’s assets at $627 billion.
Tuesday, December 10, 2013
Apollo Tyres introduces Vredestein brand tyres in India
Kochi: Strengthening its product offering further in the Indian market, Apollo Tyres has introduced its premium European brand, Vredestein in the country.
Vredestein brand, known for its designer and high quality tyres, is entering India with tyre sizes of 15" to 20", primarily catering to the luxury coupes, premium luxury sedans and SUVs, with speeds upto 240 to 300 kph. This, the company says, would complement the existing product range from Apollo Tyres in the passenger vehicle tyres space.
The tyres being introduced currently, under the Vredestein brand, are Ultrac Sessanta, Ultrac SUV Sessanta, Ultrac Cento and Sportrac 5, all with the signature touch of renowned automobile designer, Giorgetto Giugiaro.
A major differentiator for this 100 year old brand, Vredestein, which we are introducing today for the Indian customers, is its premium styling and ultra high performance, the two most important factors considered by owners of luxury cars, before buying a tyre,'' said Onkar S Kanwar, chairman of Apollo Tyres Ltd
Manufactured in the state-of-the-art facility in Enschede, in The Netherlands, brand Vredestein is used by a whole range of luxury vehicles across the European Union, the United States, the Middle East and China
Vredestein brand, known for its designer and high quality tyres, is entering India with tyre sizes of 15" to 20", primarily catering to the luxury coupes, premium luxury sedans and SUVs, with speeds upto 240 to 300 kph. This, the company says, would complement the existing product range from Apollo Tyres in the passenger vehicle tyres space.
The tyres being introduced currently, under the Vredestein brand, are Ultrac Sessanta, Ultrac SUV Sessanta, Ultrac Cento and Sportrac 5, all with the signature touch of renowned automobile designer, Giorgetto Giugiaro.
A major differentiator for this 100 year old brand, Vredestein, which we are introducing today for the Indian customers, is its premium styling and ultra high performance, the two most important factors considered by owners of luxury cars, before buying a tyre,'' said Onkar S Kanwar, chairman of Apollo Tyres Ltd
Manufactured in the state-of-the-art facility in Enschede, in The Netherlands, brand Vredestein is used by a whole range of luxury vehicles across the European Union, the United States, the Middle East and China
Technology firms in India foresee US$ 18 billion opportunity using IoT data: Cisco
New Delhi: Indian technology firms are expected to reap the benefits of Internet of Things (IoT) data, considered to be a US$ 18 billion opportunity, to help clients improve productivity and asset utilisation as well as to enhance end-customer experience, as per networking firm Cisco.
The IoT includes all forms of data generated by a network of Internet-connected devices like sensors, routers, smartphones, smart TVs and security cameras.
Cisco projections further highlight that with improved business process execution and capital efficiency, companies can utilise their assets better (US$ 1.4 billion), while enhanced employee productivity presents a US$ 0.9 billion opportunity. The other IoT opportunities include improved supply chain logistics (US$ 8.3 billion), enhanced customer experience (US$ 2.7 billion) and strong innovation, including shorter time to market and additional revenue streams from new business models and opportunities (US$ 4.7 billion). Furthermore, according to Cisco’s study ‘Internet of Everything Value Index’ IoT is expected to generate at least US$ 613 billion in global corporate profits this year.
The technologies like predictive analytics and Big Data can help companies to further enhance productivity and increase operational efficiency. “Use cases for IoT are plenty, be it for energy companies that can build smart grids to reduce T&D losses or for the food industry where there is a lot of wastage due to lack of proper warehousing and logistics,” according to Mr Jeff White, President (India and SAARC), Cisco.
Big Data and analytics are also transforming other sectors like healthcare and hospitality. Mr White further elaborated the usage by citing an example, “Using IoT, one can have virtual doctors in villages, where specialists are not available. Through telepresence, these doctors can conduct checkups, dispense health advice, or even alert people to possible health problems before they become serious.”
Smarter networks not only help companies plan better but also reduce operational inefficiency and increase productivity, Mr White added. With IP-enabled devices connected to a common network and communicating with each other, door locks, thermostats, set-top-boxes, mini-fridges, light switches and other things can be automated to provide better experience to hotel guests, driving greater customer loyalty, Mr White added.
The IoT includes all forms of data generated by a network of Internet-connected devices like sensors, routers, smartphones, smart TVs and security cameras.
Cisco projections further highlight that with improved business process execution and capital efficiency, companies can utilise their assets better (US$ 1.4 billion), while enhanced employee productivity presents a US$ 0.9 billion opportunity. The other IoT opportunities include improved supply chain logistics (US$ 8.3 billion), enhanced customer experience (US$ 2.7 billion) and strong innovation, including shorter time to market and additional revenue streams from new business models and opportunities (US$ 4.7 billion). Furthermore, according to Cisco’s study ‘Internet of Everything Value Index’ IoT is expected to generate at least US$ 613 billion in global corporate profits this year.
The technologies like predictive analytics and Big Data can help companies to further enhance productivity and increase operational efficiency. “Use cases for IoT are plenty, be it for energy companies that can build smart grids to reduce T&D losses or for the food industry where there is a lot of wastage due to lack of proper warehousing and logistics,” according to Mr Jeff White, President (India and SAARC), Cisco.
Big Data and analytics are also transforming other sectors like healthcare and hospitality. Mr White further elaborated the usage by citing an example, “Using IoT, one can have virtual doctors in villages, where specialists are not available. Through telepresence, these doctors can conduct checkups, dispense health advice, or even alert people to possible health problems before they become serious.”
Smarter networks not only help companies plan better but also reduce operational inefficiency and increase productivity, Mr White added. With IP-enabled devices connected to a common network and communicating with each other, door locks, thermostats, set-top-boxes, mini-fridges, light switches and other things can be automated to provide better experience to hotel guests, driving greater customer loyalty, Mr White added.
High-end bikes & electric cars made in India for China
New Delhi: In what may come as a surprise to many, India is quietly becoming a production hub of high-end vehicles meant for export to China. Iconic US motorbike maker Harley Davidson, Austrian motorcycle manufacturer KTM and Mahindra & Mahindra have preferred to set up manufacturing facilities in India than in the relatively low-cost China and export the output.
KTM, 48 per cent owned by Bajaj Auto, has identified two of its products under the Duke brand for export to China as completely knocked-down (CKD) units. The initial target is to sell over 10,000 CKD units of these high-end bikes annually. Exports are expected to commence in 2014. The two bikes are Duke 200 (Rs 1.35 lakh, ex-showroom, Delhi) and Duke 390 (Rs 1.88 lakh) manufactured at Chakan in Pune as part of the company’s joint development programme with Bajaj Auto. The KTM strategy is to sell high-power bikes from Europe and low-power ones from India. The bikes would be assembled at an outsourced facility in China.
Confirming the plans, S Ravikumar, senior vice-president (business development), Bajaj Auto, said, “The China strategy for KTM is clear. They want to target the niche upper end of the motorcycle market in China. They are not interested in the lower end where there are many players and huge volumes. We expect there to be a large market for high-end bikes in China.” The China thrust is part of the joint strategy of Bajaj-KTM to treble exports to around 70,000 units per annum from India, from about 25,000 currently. That effectively means about 13 per cent of the exports would come from selling to China.
Stefan Pierer, CEO, KTM Motorcycles AG, said, “We are in the process of setting up an assembly unit in China, which is expected to be commissioned sometime next year.” Keeping KTM company will be Harley Davidson, which has lined up for export models developed on the recently unveiled Street platform from its facility in Bawal (Haryana). Currently, Harley does not have any plants outside the US, except in Brazil and India, and it wants to leverage those plants for export to China. Anoop Prakash, managing director, Harley Davidson India, said, “Harley Davidson has developed the Street platform after a gap of 14 years. Both Street 750 and Street 500 will be manufactured in India, the only other production hub for the models apart from Kansas in the US.
These bikes will be exported from India to markets in Europe and Asia, including China.” Production and export of both models on the Street platform are expected to commence in India mid next year. Prakash, however, declined to specify a timeline for starting exports to China.
Abdul Majeed, partner and leader (automotive practice), PricewaterhouseCoopers (PwC) explained, “Both India and China are key markets in terms of two-wheeler sales. Given that customer requirements in both countries are largely similar, two-wheeler makers operating out of India only stand to gain in cost leadership if they are able to attain quality parameters while exporting to China.”
The potential to gain volumes in electric vehicles has drawn Mahindra & Mahindra to explore opportunities in China. The discontinuation of government incentives on green vehicles has meant the Mahindra e2o has sold only about 400 units since its launch in March — numbers the company was expecting to clock monthly.
Mahindra & Mahindra group company Mahindra Reva Electric Vehicles (MREV) is developing a variant of the electric car for exports scheduled to commence in early 2014. While the export variant would be first shipped to countries in the European region, MREV is additionally looking at opportunities to tap the growing market for electric vehicles in China. Chetan Maini, chief of strategy and technology, MREV, had told Business Standard earlier, “The export variant would be ready by early next year. We are looking at exporting the e2o to all markets we previously exported the Revai. We will also explore possibilities in China.”
According to industry estimates, the Chinese market has the potential for sales of five million electric vehicles by the end of the decade. Nearly half the 4,750 units of the Revai manufactured since inception were sold in 24 countries, mostly across Europe and West Asia.
KTM, 48 per cent owned by Bajaj Auto, has identified two of its products under the Duke brand for export to China as completely knocked-down (CKD) units. The initial target is to sell over 10,000 CKD units of these high-end bikes annually. Exports are expected to commence in 2014. The two bikes are Duke 200 (Rs 1.35 lakh, ex-showroom, Delhi) and Duke 390 (Rs 1.88 lakh) manufactured at Chakan in Pune as part of the company’s joint development programme with Bajaj Auto. The KTM strategy is to sell high-power bikes from Europe and low-power ones from India. The bikes would be assembled at an outsourced facility in China.
Confirming the plans, S Ravikumar, senior vice-president (business development), Bajaj Auto, said, “The China strategy for KTM is clear. They want to target the niche upper end of the motorcycle market in China. They are not interested in the lower end where there are many players and huge volumes. We expect there to be a large market for high-end bikes in China.” The China thrust is part of the joint strategy of Bajaj-KTM to treble exports to around 70,000 units per annum from India, from about 25,000 currently. That effectively means about 13 per cent of the exports would come from selling to China.
Stefan Pierer, CEO, KTM Motorcycles AG, said, “We are in the process of setting up an assembly unit in China, which is expected to be commissioned sometime next year.” Keeping KTM company will be Harley Davidson, which has lined up for export models developed on the recently unveiled Street platform from its facility in Bawal (Haryana). Currently, Harley does not have any plants outside the US, except in Brazil and India, and it wants to leverage those plants for export to China. Anoop Prakash, managing director, Harley Davidson India, said, “Harley Davidson has developed the Street platform after a gap of 14 years. Both Street 750 and Street 500 will be manufactured in India, the only other production hub for the models apart from Kansas in the US.
These bikes will be exported from India to markets in Europe and Asia, including China.” Production and export of both models on the Street platform are expected to commence in India mid next year. Prakash, however, declined to specify a timeline for starting exports to China.
Abdul Majeed, partner and leader (automotive practice), PricewaterhouseCoopers (PwC) explained, “Both India and China are key markets in terms of two-wheeler sales. Given that customer requirements in both countries are largely similar, two-wheeler makers operating out of India only stand to gain in cost leadership if they are able to attain quality parameters while exporting to China.”
The potential to gain volumes in electric vehicles has drawn Mahindra & Mahindra to explore opportunities in China. The discontinuation of government incentives on green vehicles has meant the Mahindra e2o has sold only about 400 units since its launch in March — numbers the company was expecting to clock monthly.
Mahindra & Mahindra group company Mahindra Reva Electric Vehicles (MREV) is developing a variant of the electric car for exports scheduled to commence in early 2014. While the export variant would be first shipped to countries in the European region, MREV is additionally looking at opportunities to tap the growing market for electric vehicles in China. Chetan Maini, chief of strategy and technology, MREV, had told Business Standard earlier, “The export variant would be ready by early next year. We are looking at exporting the e2o to all markets we previously exported the Revai. We will also explore possibilities in China.”
According to industry estimates, the Chinese market has the potential for sales of five million electric vehicles by the end of the decade. Nearly half the 4,750 units of the Revai manufactured since inception were sold in 24 countries, mostly across Europe and West Asia.
FII inflows cross Rs 1-lakh-cr mark
Mumbai: Foreign institutional investors (FIIs) continue to pump in money into Indian equity markets, with their net inflow so far this year crossing the Rs 1-lakh-crore mark on Friday. According to official data, the inflows touched a whooping Rs 1,01,441 crore as of Friday.
According to the Securities and Exchange Board of India, FIIs invested Rs 100,577 crore ($18.07 billion) as of Thursday. On Friday, they invested an additional Rs 864 crore (provisional data). Of the total net inflow, about Rs 40,000 crore came in the last three months, following measures taken by the Reserve Bank of India (RBI) to boost the weakening rupee and revive economic growth. A delay in US Federal Reserve’s quantitative easing tapering, coupled with better-than-expected September quarter earnings, ensured FIIs kept foreign money flowing into Indian equities.
Since their entry into Indian capital markets in 1992-93, net FIIs inflows have exceeded Rs 1,00,000 crore in 2010 and 2012. In 2012, FIIs had net invested Rs 1,28,360 crore ($24.4 billion), while in 2010, they made a record net inflow (in rupee terms) of Rs 1,33,266 crore ($29.36 billion).
Currently, market capitalisation is heavily skewed in favour of large companies. But analysts say there is ample potential for companies with strong fundamentals and sound business models in the mid-cap space.
Latest data on shareholding pattern show FII holdings in BSE100 companies is estimated at 15.5 per cent. These companies account for about 70 per cent of the total BSE market capitalisation. FIIs hold an average 11 per cent stake in BSE mid-cap companies, and eight per cent in small-cap companies.
Analysts expect the fund flow to continue. Kruti Shah, an analyst with Karvy Institutional Research, says, “In the third quarter of 2013-14, we can expect net positive FII inflows due to postponement of the US Fed’s tapering decision. With rising dependence on short-term inflows to finance CAD (current account deficit), we expect volatility in foreign exchange reserves to remain high.”
According to the Securities and Exchange Board of India, FIIs invested Rs 100,577 crore ($18.07 billion) as of Thursday. On Friday, they invested an additional Rs 864 crore (provisional data). Of the total net inflow, about Rs 40,000 crore came in the last three months, following measures taken by the Reserve Bank of India (RBI) to boost the weakening rupee and revive economic growth. A delay in US Federal Reserve’s quantitative easing tapering, coupled with better-than-expected September quarter earnings, ensured FIIs kept foreign money flowing into Indian equities.
Since their entry into Indian capital markets in 1992-93, net FIIs inflows have exceeded Rs 1,00,000 crore in 2010 and 2012. In 2012, FIIs had net invested Rs 1,28,360 crore ($24.4 billion), while in 2010, they made a record net inflow (in rupee terms) of Rs 1,33,266 crore ($29.36 billion).
Currently, market capitalisation is heavily skewed in favour of large companies. But analysts say there is ample potential for companies with strong fundamentals and sound business models in the mid-cap space.
Latest data on shareholding pattern show FII holdings in BSE100 companies is estimated at 15.5 per cent. These companies account for about 70 per cent of the total BSE market capitalisation. FIIs hold an average 11 per cent stake in BSE mid-cap companies, and eight per cent in small-cap companies.
Analysts expect the fund flow to continue. Kruti Shah, an analyst with Karvy Institutional Research, says, “In the third quarter of 2013-14, we can expect net positive FII inflows due to postponement of the US Fed’s tapering decision. With rising dependence on short-term inflows to finance CAD (current account deficit), we expect volatility in foreign exchange reserves to remain high.”
Hong Kong hopes to treble trade with India to $50 billion in 6 years
Mumbai: The Hong Kong Government intends to take the bilateral trade with India to $50 billion in the next six years from $17 billion at present.
Hong Kong has emerged as the major trading hub for the Indian gem and jewellery industry after the US. Hong Kong would like to replicate the jewellery industry’s success to other sectors such as information technology, home textiles, gift items and food industry.
Export market
India has become the fourth largest export market for Hong Kong, with export to India touching $8 billion in the first nine months of 2013, while India’s export to the country was at $8.8 billion. India was the seventh largest sourcing destination for Hong Kong.
Speaking to the media, Benjamin Chau, Deputy Executive Director Hong Kong Trade Development Council, said Indian jewellers are already tapping Dubai and the Hong Kong markets to circumvent the prolonged sluggish demand in the US.
Though Indian gems and jewellery exports have slowed down in the last few months, due to the various measures implemented by the Government, the sector constitutes about 19 per cent of the total exports from India. The Indian gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market at 27 per cent per annum.
Rising CAD
Concerned over rising current account deficit due to large scale gold imports, the Government had progressively hiked import duty to 10 per cent and had made it mandatory for gold importers to export 80 per cent of the gold consignment before placing fresh orders for gold import.
Hong Kong has emerged as the major trading hub for the Indian gem and jewellery industry after the US. Hong Kong would like to replicate the jewellery industry’s success to other sectors such as information technology, home textiles, gift items and food industry.
Export market
India has become the fourth largest export market for Hong Kong, with export to India touching $8 billion in the first nine months of 2013, while India’s export to the country was at $8.8 billion. India was the seventh largest sourcing destination for Hong Kong.
Speaking to the media, Benjamin Chau, Deputy Executive Director Hong Kong Trade Development Council, said Indian jewellers are already tapping Dubai and the Hong Kong markets to circumvent the prolonged sluggish demand in the US.
Though Indian gems and jewellery exports have slowed down in the last few months, due to the various measures implemented by the Government, the sector constitutes about 19 per cent of the total exports from India. The Indian gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market at 27 per cent per annum.
Rising CAD
Concerned over rising current account deficit due to large scale gold imports, the Government had progressively hiked import duty to 10 per cent and had made it mandatory for gold importers to export 80 per cent of the gold consignment before placing fresh orders for gold import.
JLR to invest over Rs 4,600 crore in a new plant in Brazil
New Delhi: Tata Motors owned JaguarLand Rover has entered into an agreement with the state of Rio de Janeiro to build a manufacturing plant in Brazil with an investment of $750 million (Rs 4,626 crore).
The plant will have annual production of 24,000 vehicles. The construction of the manufacturing facility will commence in mid-2014 with the first vehicle rolling off the assembly line in 2016, subject to the final approval of the plans from the Brazilian Federal Government under its Inovar-auto Programme.
The facility will be based in the City of Itatiaia, will initially employ 400 people and generate additional jobs in the supply chain. The direct employment is likely to double by the end of the decade
Jaguar Land Rover's planned expansion into Brazil is the next major step in the company's strategy to increase its global manufacturing footprint and create additional capacity. This new facility will play an important role in supporting the significant growth opportunity identified in Brazil and across other South American markets, said the company in a statement on Thursday.
Ralf Speth, CEO of Jaguar Land Rover, said, "Brazil and the surrounding regions are very important. Customers there have an increasing appetite for highly capable premium products. This new programme will enable us to bring exciting new vehicles to them, with outstanding British design and engineering, creating a world-class Jaguar Land Rover facility incorporating leading premium manufacturing technologies."
The plant once comes up will be the second significant manufacturing base, outside of United Kingdom for Jaguar Land Rover. Last year, the company entered the Chinese market with a joint venture with Chery Automobile Company and the manufacturing plant is already under construction in Changshu, China.
In the past, the company has conducted feasibility studies to set up a plant in India too and it is also in talks with the Saudi Arabian Government to set up a plant in that country for a base in Middle East.
Jaguar Land Rover plans to invest £2.75bn in its products and facilities in the FY-2014.
Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Its national sales company is based in Sao Paulo, employing almost 100 people. There are currently 35 dealers across Brazil with further expansion planned in the next year.
So far in 2013, Jaguar Land Rover sales in Brazil have increased by more than 40% to 9,549 vehicles over the 10 month period. The best-selling models in Brazil are Range Rover Evoque, Freelander and Discovery.
Following a detailed feasibility study, Jaguar Land Rover selected the City of Itatiaia, close to the heart of the emerging Regional Automotive Zone, due to its excellent logistics links, access to the local supplier base and skilled workforce.
Sergio Cabral, Governor of Rio de Janeiro State said, ""We offer perfect conditions to JLR to install its plant in Brazil, as we have an automotive hub in the South Fluminense region that concentrates qualified labor and important suppliers. It is a privilege to welcome this great group, with an estimated investment of up to R$750 million and we are confident that this agreement will bring to Brazil extraordinary results"".
Jaguar Land Rover has three advanced manufacturing facilities in the UK and is building its first state of the art advanced engine facility at i54 South Staffordshire Business Park investing more than £500m and creating almost 1,400 new jobs.
The company employs more than 26,000 people and sells vehicles in 176 countries around the world. More than 80% of our business is exported. Over the last two years it has recruited over 9,000 people.
The plant will have annual production of 24,000 vehicles. The construction of the manufacturing facility will commence in mid-2014 with the first vehicle rolling off the assembly line in 2016, subject to the final approval of the plans from the Brazilian Federal Government under its Inovar-auto Programme.
The facility will be based in the City of Itatiaia, will initially employ 400 people and generate additional jobs in the supply chain. The direct employment is likely to double by the end of the decade
Jaguar Land Rover's planned expansion into Brazil is the next major step in the company's strategy to increase its global manufacturing footprint and create additional capacity. This new facility will play an important role in supporting the significant growth opportunity identified in Brazil and across other South American markets, said the company in a statement on Thursday.
Ralf Speth, CEO of Jaguar Land Rover, said, "Brazil and the surrounding regions are very important. Customers there have an increasing appetite for highly capable premium products. This new programme will enable us to bring exciting new vehicles to them, with outstanding British design and engineering, creating a world-class Jaguar Land Rover facility incorporating leading premium manufacturing technologies."
The plant once comes up will be the second significant manufacturing base, outside of United Kingdom for Jaguar Land Rover. Last year, the company entered the Chinese market with a joint venture with Chery Automobile Company and the manufacturing plant is already under construction in Changshu, China.
In the past, the company has conducted feasibility studies to set up a plant in India too and it is also in talks with the Saudi Arabian Government to set up a plant in that country for a base in Middle East.
Jaguar Land Rover plans to invest £2.75bn in its products and facilities in the FY-2014.
Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Its national sales company is based in Sao Paulo, employing almost 100 people. There are currently 35 dealers across Brazil with further expansion planned in the next year.
So far in 2013, Jaguar Land Rover sales in Brazil have increased by more than 40% to 9,549 vehicles over the 10 month period. The best-selling models in Brazil are Range Rover Evoque, Freelander and Discovery.
Following a detailed feasibility study, Jaguar Land Rover selected the City of Itatiaia, close to the heart of the emerging Regional Automotive Zone, due to its excellent logistics links, access to the local supplier base and skilled workforce.
Sergio Cabral, Governor of Rio de Janeiro State said, ""We offer perfect conditions to JLR to install its plant in Brazil, as we have an automotive hub in the South Fluminense region that concentrates qualified labor and important suppliers. It is a privilege to welcome this great group, with an estimated investment of up to R$750 million and we are confident that this agreement will bring to Brazil extraordinary results"".
Jaguar Land Rover has three advanced manufacturing facilities in the UK and is building its first state of the art advanced engine facility at i54 South Staffordshire Business Park investing more than £500m and creating almost 1,400 new jobs.
The company employs more than 26,000 people and sells vehicles in 176 countries around the world. More than 80% of our business is exported. Over the last two years it has recruited over 9,000 people.
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