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- BMTC BUSES TO HAVE BICYCLE RACKS
- CONSTRUCTION AGRI MACHINERY
- Hero Honda may give special dividend The Hindu Business Line HERO HONDA SET TO REWARD INVESTORS
- HERO HONDA ROLLS OUT 11TH MILLION SPLENDOR
- ROYAL ENFIELD CLASSIC BIKES LAUNCHED
- AUTO COMPONENTS
- ALLIED INDUSTRIES
- EXIDE LIKELY TO TAKE QIP ROUTE TO FUND RD
- EXIDE TO RAISE RS 597 CR VIA SHARES ISSUE
- INDIA TO BE STRATEGIC MANUFACTURING LOCATION FOR MICHELIN GROUP
- FINANCE INSURANCE
Exports still low Overall CV exports rose by about 2 per cent in the month. However, for April-October period, exports were down 31 per cent. Among the three major companies, only Eicher posted a 27 per cent growth, while both Tata and Ashok Leyland’s exports declined. “We have a higher ambition for our export growth by leveraging Volvo’s large distribution network and creating market specific competitive product offering in light and medium duty, heavy duty and buses,” said Mr Bhattacharjee. Eicher trucks and buses, which exports to around 20 countries, is looking to new markets in Saudi Arabia, Indonesia, Vietnam and Malaysia. http://www.thehindubusinessline.com/2009/11/19/stories/2009111951840400.htm BMTC BUSES TO HAVE BICYCLE RACKS The Hindu (Web Edition) Bangalore: Bangalore Metropolitan Transport Corporation (BMTC) buses will soon have cycle racks for the convenience of commuters who wish to use pedal power for part of their journey. Participating in Bicycle Eco Rally organised by the Transport Department to create pollution control awareness at Malleswaram Grounds here on Wednesday, Transport Commissioner Bhaskar Rao said that commuting by bicycle, bus and walk were the only solution for better mobility in Bangalore’s traffic-dense roads. “I have already asked the BMTC to fit bicycle racks in the buses. Bus manufacturer Volvo too has agreed to install them,” Mr. Rao said. Pollution “The only way to save Bangalore from pollution is to use eco-friendly mode of transport. Bicycles should start taking over the roads. The weather in the city is also pleasant unlike many places in north Karnataka. It supports physical activity; let’s do our bit,” he added. The Transport Department has been organising various programmes throughout November to observe Air Pollution Control Month and Wednesday’s Bicycle Eco Rally was part of the campaign. Students from Rajarajeshwari English School, Tirumala Education Society, and B.P. Indian High School participated in the green Initiative. “Depletion of the ozone layer can be controlled with eco-friendly measures,” said Vinod Sharma studying in the VIII standard of Rajarajeshwari English School, Malleswaram. http://www.hindu.com/2009/11/19/stories/2009111960400400.htm ================================= CONSTRUCTION & AGRI MACHINERY -Top- ================================== - - - - - ======================== TWO – THREE WHEELERS -Top- ======================== HERO HONDA MAY OFFER SPECIAL DIVIDEND TO USE RS 4,000 CR CASH PILE PTI
See this story in: The Economic Times New Delhi: Hero Honda is sitting on a huge cash reserve of over Rs 4,000 crore and the two-wheeler leader is looking at many options, including issuing special divided to its shareholders or capacity expansion, to use the fund. Hero Honda chief financial officer Ravi Sud told PTI that the company could consider several options for utilising the huge cash reserve. "Yes, we have a cash reserve of Rs 4,000 crore in our balance sheet. What the company will do with the fund, the board has to decide on that; but there are several options. One of them is to give special dividend to our shareholders," Sud said. He, however, said nothing has been decided and the next board meeting is likely to take place in January only. "Expanding our capacity can also be an option. Another possibility can be to use the money in buyback (of shares)," Sud said. For buying back shares, the Munjals will have to rework their joint venture agreement with their Japanese partner Honda Motors. Hero Honda is a joint venture between the Hero Group promoted by the Munjals and the Japanese auto giant Honda Motors. As per the current agreement, both the partners hold 26 per cent stake each in the company now. "Nothing has been decided. If anything has to done, then the board has to decide on that," Sud said. The company could also consider merger and acquisitions to utilise this huge cash surplus, he added. Hero Honda's net profit for the September quarter soared 95 per cent to Rs 597.14 crore, while total income rose by 26.78 per cent to Rs 4,128.15 crore. http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/Hero-Honda-may-offer-special-dividend-to-use-Rs-4000-cr-cash-pile/articleshow/5244359.cms Hero Honda may give special dividend The Hindu Business Line HERO HONDA SET TO REWARD INVESTORS Abhinaba Das The Economic Times Shareholders of Hero Honda Motors, who have received at least Rs 177 per share as dividends in the last decade, could look forward for another windfall payout soon, as India’s top two-wheeler maker ponders appropriate uses for its cash pile amid a dearth of suitable deployment options. The maker of Karizma and Splendour motorcycles, a habitual growth monster that is set to exceed sales targets this year, is sitting on a cash mountain of Rs. 3,500 crore and senior company executives say it does not require even a portion of this hoard to expand capacity. “We can create capacity of 1.5 million units with an investment of $200 million,” Hero Honda’s CFO Ravi Sud told ET NOW in an interview. “With the high level of profitability and high EBTDA margin, the cash will continue to accumulate unless part of it is paid back to shareholders. I am sure the board of directors of the company will take a decision at the appropriate time.” Hero Honda, which has traditionally been a high-dividend paying company, could make the payout in the form of a special dividend. The company’s payout ratio is around 31%. The two-wheeler industry is not capital intensive and there is little need for the company to carry such a large cash surplus on its books, said Mr Sud. The dividend option may also be because of the constraints of a joint venture agreement between the Hero group and partner Japan’s Honda Motor Co. The agreement prohibits the company from diversifying beyond the manufacture of two- and three-wheelers. However, the company has chosen not to get into the production of three-wheelers as Honda is not bullish about the prospects of making substantial profits selling three-wheelers. The Hero Group and Honda Motors hold 26% each in Hero Honda. Using the funds for share buybacks is also not an option because of the restrictive agreement. Analysts say Hero Honda is not keen on a buyback because that will increase the shareholding of the promoters beyond what is prescribed in the joint venture agreement, which comes up for renewal in 2014. Its business prospects remain bright with the revival of demand because of stimulus packages and affordable financing 
, said Mr Sud. The Delhi-based company, which had set a sales target of 4 million units for the current fiscal year, is set to beat the guidance as it plans to launch six new models over the next four months. The company has already sold over 2.3 million units in the first half. “We would surely beat our target for this year,” Mr Sud said. For the last quarter, Hero Honda reported a 95% rise in net profit at Rs 597 crore, while EBITDA margins at 18.3% were ahead of estimates. While the company gained handsomely from soft commodity prices, the uptick in input costs in the current quarter could have some impact on profit margins. CLSA, in a recent report, has said that margins are also likely to come under pressure from the third quarter due to rising steel and aluminium prices as well as due to indirect impact from the current labour problems at its suppliers. “Copyright © 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Hero-Honda-set-to-reward-investors/articleshow/5245559.cms HERO HONDA ROLLS OUT 11TH MILLION SPLENDOR Vikram Gour The Economic Times, Zigwheels Hero Honda crossed another milestone as it rolled out its 11th million Splendor motorcycle on 11th November, 2009 at the company's plant in Gurgaon, Haryana. It's been 25 years since Hero Honda commenced operations in India, and it has been a pioneering partnership between the two companies - Hero Group and Honda Corporation, which has led to winning the 'largest two wheeler manufacturer in the world title' for eight consecutive years. The year 2009 might have been a slow year in terms of launches, however by no means does it signify that Hero Honda has slowed down for the company bagged the World's number one bike manufacturer award for the 8th time in a row. This award just goes to show the dedication that Hero Honda has to the market and it is really no surprise that the company has been doing great business for 25 years in India. Recently, Hero Honda launched the Karizma ZMR, a fully clad, fuel injection version of their flagship Karizma motorcycle in order to cater to the growing performance motorcycle segment. The company has played a key role in putting India on wheels since its inception in 1984. The first Hero Honda Splendor rolled out of the Hero Honda factory in January 1994 - literally a decade after the company had been incorporated. Unknown to the company then, this bike would re write history. The sales charts just kept climbing and by November 1994 the company had achieved the landmark sales figure of producing 1 million motorcycles. Over the past 15 years, the Splendor brand has garnered immense recognition across the nation, thanks to its ultrafrugal nature, extremely high reliability quotient and superior comfort. The bike has carved a niche for itself in the 100cc segment and has given its maker the tag of the largest twowheeler manufacturer in the world. “Copyright © 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" ROYAL ENFIELD CLASSIC BIKES LAUNCHED The Hindu Hyderabad: The most awaited bike from the stables of Royal Enfield is here. Charming to the core and a rugged beast when it hits the road, the latest Royal Enfield Classic 350cc and Royal Enfield Classic 500cc bikes were unveiled here on Tuesday. Unlike the standard Bullet 350cc, the Classics are powered by a single cylinder, unit construction engine (UCE) and supported by electronic fuel injection, making it low maintenance. The styling and design of both the bikes have been inspired by Royal Enfield Crusader and Clipper from the 1950’s and also from Super Marine Spitfire Fighter Plane, said Shaji Koshy, Head, Sales and Marketing, Royal Enfield, during the launch. The UCE engine has lesser moving parts as the engine, gearbox and clutch have been integrated so that there is less friction, resulting in lower transmission losses. The post World War-II British designs have got the bikes sporting split seats and the tank design has been inspired by Royal Enfield’s 1947 J, 1949 500 twin and 1948 J2 bikes. The bikes have been completely crafted in metal and the insignia-crested fuel tank, tiger-eyed head lamp with Royal Enfield’s signature headlight cap is hard to miss for any die hard Royal Enfield enthusiast. A division of Eicher Motors Limited, Royal Enfield sells over 50,000 bikes per year and the production capacity of the Chennai based company will increase by another 10,000 units in 2010 and finally be upgraded to manufacture one lakh units by 2013, said Mr. Koshy. The Royal Enfield Classic 350cc has been priced at Rs.1.09 lakh and Royal Enfield Classic 500cc will be sold for Rs.1.39 lakh. http://www.hindu.com/2009/11/19/stories/2009111959170200.htm ===================== AUTO COMPONENTS -Top- ===================== GLOBAL BIGGIES TO SOURCE PARTS FROM NANO VENDORS FOR LOW-COST MODELS Nandini Sen Gupta & Sumit Chaturvedi The Economic Times New Delhi: Key component suppliers of Nano are set to reap the benefits of their low-cost technologies that made the world’s cheapest car a reality, with global biggies such as Nissan-Renault , Toyota, VW and Honda approaching them for parts for their low-cost cars. With as many as seven small cars lining up for Indian debut in the next two years, Nano’s 100-odd vendors are already cheering. Nano’s only direct competitor, Rajiv Bajaj’s $2,500 car, is expected to draw extensively from Nano vendor base. “It would inevitably use (the Nano parts suppliers). The project will source almost 100% from the Bajaj supply base, but many suppliers in that pool is also common to the Nano,” said a person with direct knowledge of the Nissan-Renault-Bajaj ultra lowcost car project, who asked not to be named. Officials with ACMA, the apex body for the auto component industry, said carmakers, two-wheeler manufacturers and commercial vehicle companies were trying to halve the cost of their new products. All of them are looking at replicating the Nano experience in their products, said Jayant Davar, president of ACMA and vice-chairman and managing director of Sandhar Technologies. “They are looking at launching their vehicles at lower prices than their existing range. But before they tie up officially, they want their components to be validated by their Japanese and other overseas parents,” he said.
Key component makers such as Bosch have already been approached. Bernd Bohr, member of the board of management at Bosch, had told ET NOW earlier that the Tata Nano project is giving Bosch a good entry point with other original equipment manufacturers (OEMs) that were thinking of the same segment. A Delhi-based Nano supplier said he made presentations to some MNCs customers that wanted to use the technology developed for the Tata group’s small car. “Now they are sourcing components from us for their small cars that are slated for launch in the next 2-3 years,” he said, requesting anonymity. Understandably, most vehicle makers deny they have anything to do with the Nano. From GM to Honda to Toyota to Volkswagen, the common response is that the small cars lined up for India will not be in the Nano category and will not be of the same quality. However, vendors say the Nano takeaway is not in replicating the same components but in replicating the processes that made the Nano so cost-effective . India’s small car market, which comprises 80% of the 1.5 million units industry, will see a number of new launches in the next 14 months. Nearly all the big names of the auto world have announced fresh projects . Toyota is working on a platform for a small car with an investment of over Rs 3,000 crore. Honda has also announced its first small car that will have India as the hub. Hyundai, which already has best-selling small cars such as the Santro, i10 and the Getz in the Indian market, has announced a new car positioned below the Santro with an investment of Rs 800 crore. VW’s Polo, GM’s Chevy Beat and Nissan’s Micra will debut in 2010. The Bajaj low-cost car is due in 2012. “Copyright © 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
===================== ALLIED INDUSTRIES -Top- ===================== EXIDE FALLS ON EQUITY DILUTION FEARS The Hindu Business Line Kolkata: Exide Industries is planning to raise funds through private placement of fresh issue of equity shares or other equity derivatives to tap future investment opportunities in the areas of technology infusion, acquisition and others, according to sources. Investments requirements, if any, to scale-up the domestic capacities will be met from the internal accruals. The stock reacted negatively to the fund raising plans, on equity dilution worries, after the company’s board of directors approved issue of five crore shares to institutional investors. The company shares closed 4.76 per cent lower at Rs 114.15 compared to the previous closing price at the NSE. In a notice issued to the stock market on Wednesday, the company stated that its board of directors have approved an issue of up to five crore equity shares or derivatives convertible into equity shares to qualified institutional investors. Exide, currently, has an equity base of 80 crore shares of Re 1 each. Accordingly, an issue of 5 crore equity shares will amount to 6.25 per cent of the company’s expanded equity base. While company officials were not available for comments, sources close to the development told Business Line that the company was yet to decide about the timing of the issue and its exact quantum. “The issue is considered keeping in view of possibilities of future investment requirements in the areas of technology infusion and others,” a source said. He, however, stressed that the company was yet to finalise any such specific investment plan. “Any such investment possibility, if (it) comes up, may be too big to be financed through internal accruals,” he said. On why the company preferred equity route over borrowing to fund such future investments, the source said that the “the liquidity condition in the market may be reduced in the future”. On the domestic capacity expansion plan, the source said that the company was consistently increasing its capacities to meet the domestic demand for automotive batteries and global demand for industrial batteries. “We are hopeful to meet the capital requirement for domestic capacity augmentation from our internal resources,” he said. http://www.thehindubusinessline.com/2009/11/19/stories/2009111952041200.htm EXIDE LIKELY TO TAKE QIP ROUTE TO FUND R&D The Economic Times Kolkata: Exide industries has decided to raise capital through the qualified institutional placement (QIP) route to primarily fund research and development (R&D) initiatives and adopt fresh technologies for coping with future challenges. The QIP issue size is unlikely to be below Rs 500 crore, which will include premium over the face value of Re 1 per equity share. Exide officials, however, remained tightlipped about the size of the issue. “It is difficult to put a number at this point. The issue size would hinge on the timing of the exercise, Sebi regulations among others,” a senior Exide official said. The company will issue 5 crore equity shares and/or any securities convertible into
The company, according to its officials, does not need capital immediately. It will not use the fund towards its proposed capacity expansion. “We have decided to use our cash flow for capex plans. The capital would be used mainly for R&D and technology as a preparation for the future,” the official said. Exide may also think of new set-ups with cutting-edge technology to support its growth plans. Incidentally, Exide has nearly doubled net profit to Rs 149.67 crore for the quarter to September 30, 2009, and the company managing director and CEO TV Ramanathan had attributed the rise to a curb on operational cost and technology updation. Availability of captive smelters helped the company to source its principal raw material, lead, locally and reduce the input costs. And the technology upgradation has helped the company to mitigate the adverse impact arising from the escalation in lead prices. “Copyright © 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" EXIDE TO RAISE RS 597 CR VIA SHARES ISSUE PTI See this story in: The Hindu Business Line Mumbai: Exide Industries on Wednesday said its board has approved the issue of five crore shares to potential buyers on private placement basis to raise an estimated Rs 597 crore. The board at its meeting held on Wednesday has approved to issue five crore equity shares or any securities convertible into equity shares, to qualified institutional buyers through private placement basis, Exide Industries said in a filing to the Bombay Stock Exchange. The proposal is subject to shareholders’ approval, the company said. http://www.thehindubusinessline.com/blnus/02181602.htm INDIA TO BE STRATEGIC MANUFACTURING LOCATION FOR MICHELIN GROUP Vikram Gour The Economic Times, Zigwheels The Michelin Group and the Tamil Nadu Government have finally inked a Memorandum of Understanding (MoU) for the set up of a tyre plant by Michelin Group in the state. The plan for Michelin to be more than just a tyre importer and operator in the Indian market has now surpassed its purpose for the company was clear that once India reached a critical volume, it would be necessary for the company to set up a facility in the country to cater to the growing needs. Michelin made it clear that it would be investing in a tyre factory in the near future and recent developments have it that the company has gone ahead and signed a Memorandum of Understanding with the Tamil Nadu government in order to build this new facility. The land allotted to Michelin for the project is located 50 km north of Chennai at Thervoy Kandigai in the Thiruvallur district. The plant will be spread across 290 acres and the Michelin Group has committed an investment of Rs 4,000 crore for the project. The new plant will also open jobs for 1,500 workers locally. Mr. Prashant Prabhu, President, Michelin Africa-India-Middle East, said, "I would like to express my deepest gratitude to the Tamil Nadu government for offering Michelin a gateway to this state and providing the project with the necessary infrastructure to commence operations here. With the accelerating development of road and highways infrastructure and the number of ongoing road development projects, India is on course to offer customers the opportunity to extract the full value from radial tyres. We believe that India holds tremendous potential for the Michelin Group in terms of establishing a world class manufacturing facility."
“Copyright © 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" =====================
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===================================== EVEREST KANTO SHELVES CHINA SPREAD G Seetharaman Daily News & Analysis Mumbai: Everest Kanto Cylinder, India's largest compressed natural gas (CNG) and industrial cylinder maker, has decided not to add capacity at its China plant owing to poor local demand, its chief financial officer J Sivakumar said. The company had in January announced it would delay plans to double the current capacity of 200,000 CNG cylinders per annum (cpa) at the plant at an outlay of Rs 50 crore. The overall plan was to increase the capacity five-fold to 1 million cpa in three years. "We were to take a call in September as to whether we should go ahead with the addition and we have decided not to do it," Sivakumar said. He said the demand from original equipment manufacturers (OEMs) was still quite soft. OEMs here refer to auto companies. The plant began production in May 2008 and Everest Kanto has so far spent $27 million for it. The company currently exports cylinders from this plant to the Middle East and India. The facility has the capacity to produce 3,000 jumbo cpa, too. Jumbo cylinders are used for storage and transportation purposes. Everest Kanto is awaiting a nod from the government to make jumbo cylinders. In addition to putting on hold its capacity addition plan, the company has also postponed its plan to sell cylinders in China."Everest Kanto will wait till December before it decides to sell in the local market," Sivakumar said. He had told DNA Money in August that the company would begin selling in China by October but the lacklustre demand has prevented the firm from doing so. The company had got the nod from Chinese authorities to sell there in February this year. "We might sell first jumbo cylinders and then CNG cylinders," Sivakumar said. He said that there could be a recovery in the Chinese market by the end of the fiscal. The overseas operations contribute nearly 60% to Everest Kanto's topline. Other than India and China, the company has a presence in Thailand, Pakistan, Bangladesh, Iran, Egypt, Columbia and Peru, among others. Sivakumar said that overseas markets other than China are improving. "We are quite positive about Pakistan and Thailand, which has just started ordering jumbo cylinders," he said. For the quarter ended September 30, Everest Kanto posted a consolidated net loss of Rs 5.41 crore as against a profit of Rs 43.17 crore in the same period last fiscal. Revenues fell 34.4% to Rs 144.93 crore during the reporting quarter. http://www.dnaindia.com/money/report_everest-kanto-shelves-china-spread_1313501 Download 238.49 Kb. Share with your friends:
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