MARKET INSIGHTS – OCTOBER washroom complete with furnishings and equipment-are popular in the US and Europe for long-distance holidays.AUTOMOTIVE The joint venture, Mega Motoren & Lifestyles, will launch theseKia Motors to build auto plant in India: Report vehicles on diesel engines and chassis coming fromJan 07, 2011, Reuters Mercedes-Benz and Fiat stable. Prices start at Rs 75 lakh and go up to Rs 2 crore, based on specifications and customisation. And their length could be 6 meters, going up toSouth Koreas Kia Motors Corp plans to build an auto plant in 8.59 meters. All the vehicles will be fully imported from France.India with an annual production capacity of 300,000 cars, amedia report said on Friday. Maeil Business Newspaper said "We plan to launch these vehicles in Delhi, Chennai andthe factory, whose construction will begin in the first half of this Hyderabad initially and spread them to six cities by January,year in Gujarat, will start operations in early 2013, citing a key with all sales and service support," Mega Motoren CEO Muditofficial at parent Hyundai Motor Co. A Kia spokesman said Srivastava said.nothing has been decided on the plant, although it isconsidering building new factories in India and other countries. Honda Brio launched at a starting price of Rs 3.95 lakh Sep 27, 2011, The Economic TimesModi lures auto firms, TN fumesJan 17, 2011, Hindustan Times Honda announced its foray into the highly competitive low- price compact car segment in India with the launch of its BrioGujarat chief minister Narendra Modi, who got the Tatas Nano model, priced between Rs 3.95 lakh and Rs 5.1 lakh (ex-post the fracas in West Bengal, is now being accused of showroom, Delhi).wooing away auto majors to shift their expansion projects fromTamil Nadu to Gujarat. The move, which is being finalized after Skoda Citigo: New small car for the cityModi met the majors in Hyderabad, is causing alarm bells to Oct 1, 2011, The Economic Timesring in the poll bound Tamil Nadu. The auto companies hadmade Chennai‟s neighbourhood Marmalainagar their base,giving it the nickname of “Detroit of India” when AIADMK The Skoda Citigo is the first small car from the Czech brand.supremo Jayalalithaa was chief minister between 2001 to Skoda plans to make it big in this growing segment and the2006. Citigo should help them do just that Small passenger car sales are hotting up world over andA Congress MP, K S Alagiri, has petitioned commerce minister Skoda has decided to jump right into all the action with their allAnand Sharma, but he has been told that the Centre couldn‟t new Citigo. The new small car is a crucial model for Skoda asdo much because Gujarat is offering “better power and labour they are entering a new sector and must get everything right toenvironment.” Sharma, who spoke to the auto majors, told secure its position in the small car market.Alagiri that Tamil Nadu chief minister M Karunanidhi shouldstep in to prevent an exodus from his state to Gujarat. SKODA Board Chairman Prof. Dr. h.c. Winfried Vahland, said, "The Citigo is one of the pillars of our growth strategy. The carProton gets ready for India; may use Nissan’s V platform offers all of Skodas values in a compact package and fitsMay 4, 2011, DNA perfectly with our aims. The Citigo is literally a Simply Clever car. Despite its small size, it offers ample interior space; it isProton, the Malaysian carmaker, hopes to announce its India agile while frugal.plans in three to four months, according to group managingdirector Dato‟ Haji Syed Zainal Abidin Syed Mohamed Tahir. Gujarat rolls out red carpet“Since 2008, we have conducted a series of customer surveys Oct 4, 2011, The Financial Expressand road tests in order to thoroughly understand marketrequirements and customer behaviour. We believe that our Sanand: Along a dusty, traffic-choked road in Gujarat lies whatrange of products is capable of satisfying the needs of the may be Indias industrial future. As labourers work under aIndian market,” he told Brian de Souza of Autocar Professional. blazing sun to widen the highway, auto giants Ford Motor Co and PSA Peugeot Citroen prepare to spend nearly $2 billion to build new plants in Sanand, a sparsely populated collection ofIt is learnt that Nissan may license its global compact V (for villages about 40 kms west of Ahmedabad.Versatile) platform to Proton which desperately wants acredible small car to gain a foothold in key markets like India. More automakers and suppliers are expected to follow, takingBuilt for emerging markets, the V platform is the basis of the advantage of the states business-friendly policies, includingMicra manufactured in India and Thailand. Alliance partner comparatively little bureaucratic red tape and, crucially inRenault also has access to this platform as a base to spin off crowded India, ease of acquiring land. The Indian autoits own range of compact cars expected in 2012 industry, which grew 30% last fiscal year before a recent slowdown, is a key growth engine for Indias underdevelopedPilote in JV with Delhi-based Mega Group industrial sector. New Delhi wants to lift manufacturings shareOct 5, 2011, The Economic Times of the economy to 25% over the next decade from about 16% now, a daunting target. Home to the worlds biggest oil refinery,Pilote, the French firm that made the worlds first caravan in Gujarat accounts for 22% of Indias total exports, according to1962, is driving its luxury caravans into India through a joint KPMG, even though it is home to just 5% of the population.venture with Delhi-based Mega Group to set up a distribution Gujarats economy grew by 13.8% annually in the five fiscaland service network across the country. Caravans - vehicles years through March 2010, far in excess of the nationalequipped for living in with built-in kitchen, bedroom and average of 8.6% over the same period.
Suzuki effect: VW set to focus on premium cars to be commissioned in Karnataka in 2012, the company said,Oct 4, 2011, The Financial Express without divulging the value of the order. GAIL is already sourcing equipment for two of its wind power projects inWith the much celebrated two-year old global alliance of Gujarat from Suzlon Energy.Volkswagen and Suzuki on tenterhooks, the Indian subsidiaryof the German carmaker has evolved a new strategy to BHEL bags Rs 3,800-cr order from Dainik Bhaskar Powerposition its range of products in the premium category across Oct 5, 2011, Business Standardsegments. State-run BHEL today said it has bagged a Rs 3,800-croreAnalysts said that Volkswagen India was banking on Maruti order from Dainik Bhaskar Power for setting up a 1,320-MWSuzuki‟s engineering capabilities to produce small cars that thermal power plant in Madhya Pradesh. "BHEL has secured awould have helped the company enter price sensitive small car contract from an independent power producer, Dainik Bhaskarsegments to increase its volumes. However, since Suzuki has Power, for setting up a 1,320-MW thermal power plant (2x660threatened to break out of the alliance, Volkswagen has been MW) in Madhya Pradesh," the company said in a statement.forced to restrict itself to premium categories. “They may have BHEL is presently executing another contract for DBPL,to re-look at their business strategy for India. The partnership involving the supply and commissioning of a 2x600 MW (boiler,with Suzuki would have allowed them to look at lower price turbine and generator) BTG package, along with associatedpoint models. However, now they cannot be a volume player,” auxiliaries for a 1,200-MW coal-based thermal power project inmanaging director with consultancy firm Protiviti Adithya Bhat Chhattisgarh. BHELs scope of work under the new contractsaid. envisages the design, engineering, manufacture, supply, erection, testing and commissioning of supercritical boilers,Director (passenger cars) and board member of Volkswagen steam turbines and turbo-generators along with state-of-the-artIndia Neeraj Garg said that in the last one year the company controls and instrumentation (C&I) and other associatedhas increased local sourcing considerably in the Polo and the auxiliaries like transformers and a switchyard.Vento. “For Polo and Vento it (local sourcing) is a little over70%. We have increased (localisation) from 55%-70% at the Kerala wants Vizhinjam on major port listbeginning. This is a continuous process that purchase people Oct 5, 2011, Business Standardare trying to do. The optimal level is 100%. That needs a lot ofinvestment,” he said. The Kerala government wants to convert Vizhinjam Port near Thiruvananthapuram into a major port but with privateHonda plans to launch diesel cars in India operatorship. Thirty-one shipping companies, includingOct 4, 2011, The Financial Express domestic majors like Shipping Corporation of India and Essar, have shown interest in the project. The port lies to the south ofJapanese auto major Honda plans to launch diesel cars in Vallarpadam terminal, which has been developed as theIndia because of increase in demand for such vehicles against country‟s first transshipment port, but is yet to get enoughthe backdrop of high petrol prices, a top company official said. traffic. If Vizhinjam is given the status of a major port, theThe company is engaged in developing diesel engines back in shipping ministry would be empowered to decide on whether toJapan, Honda Siel Cars India Senior Vice-President (Sales develop it as a transshipment hub, given its proximity to theand Marketing), Jnaneswar Sen, said. Declining to reveal when International Container Transshipment Terminal (ICTT) indiesel variants would be rolled out in India, he said the Vallarpadam, said an official.proposed diesel engine was being developed for a specificmarket like India as most of the markets worldwide prefer Vizhinjam is over 200 kms south of the Kochi port, while thepetrol cars. Vallarpadam ICTT is on an island near the Kochi port. Based on estimates from Drewry Shipping Consultants (UK),VE Commercial Vehicle sales up 20 pc in September container volumes at Vizhinjam Port are expected to reachOct 4, 2011, The Financial Express 822,000 twenty-foot equivalent units (TEUs) by the end of Phase 1, 2020; 1.76 million TEUs by the end of Phase 2, 2030;Auto-maker VE Commercial Vehicles today said it recorded a and 2.82 million TEUs by the end of Phase 3, 2044.19.75% jump in sales during the month of September, 2011, to4,627 units. The joint venture between Volvo Group and Eicher E-retailers hire more, tie-up with logistics companiesMotors had sold 3,864 units in the same month last year, VE Oct 2, 2011, Business StandardCommercial Vehicles (VECV) said in a statement. Online retailers are geared up to handle the festive seasonVECVs domestic sales in September increased to 4,152 units rush spanning Dussehra, Diwali, Christmas and New Year.from 3,665 units in the same month a year ago, a jump of Many of them have stepped up their workforce, while others13.29%, the company added. On the other hand, exports shot have tied up with logistics companies to speed things up. Plus,up over two-fold to 475 units in the reporting month from 199 plenty of offers and discounts have been lined up to make theunits in September, 2010. most of the festive time.Suzlon bags 25.5-MW wind turbines order from GAIL Expecting an upsurge of 250% in traffic, „Ferns n Petals‟, isOct 5, 2011, Business Standard planning to hire manpower for a week to handle the additional orders. It is also making its present workforce multi-task toWind power company Suzlon Energy today said it has bagged keep up with the flood of queries and orders. Naaptol.com hasan order from GAIL for supply of wind turbines to the state-run tied up with the logistics firms to ramp up the workforce ingas distribution majors upcoming project in Karnataka. Suzlon the logistics department as the orders go up during October,received an order for supplying wind turbines with a combined November and December. “We ensure with each of ourgeneration capacity of 25.5 MW from GAIL India, the company logistics partners that their resources are in line, as the orderssaid in a filing to the Bombay Stock Exchange. The order go up so that there is no delay in deliveries to our customers”,comprises 17 Suzlon wind turbines of 1.5-MW capacity each, said Sandeep Komaravelley, marketing head, Snapdeal.com.
Snapdeal.com is expecting the sales to almost double this Industry experts say that post-2013, with the stabilisation ofseason. these projects and the availability of incremental domestic radial capacities, the dependence on Chinese imports wouldIndias steel production to touch 200 mt by 2020 reduce. “Despite the worrying macroeconomic indicators and aOct 5, 2011, Business Standard general slowdown in domestic automotive sales, the Indian tyre industry continued to post a healthy 25-30% revenueIndia, the world‟s fourth largest steel producing country, will growth during the first quarter of 2011-12 supported by strongwitness its steel production capacity rise to almost 200 million replacement and export demand," said a report prepared bytonnes by 2020. At present, China is the global leader in steel ICRA. The industry has already witnessed an addition of 17.7production, followed by USA, Russia and India. “By 2020, India lakh tyres from JK tyre, Metro Tyres Limited (Metro tyres) andwould overtake USA and Russia in steel production. However, Bridgestone India Private Limited during the first quarter ofChina would still remain the largest steel producer,” union steel fiscal 2011-12.minister Beni Prasad Verma said at a conference call here. Other major projects scheduled for completion during the“Since, India is targeting 180-200 million tonnes capacity by current year include JK Tyres, MRF Limited, Falcon Tyre2020, the government wants a foresight into the quantum of Limited, and Metro tyres, with most of the capacity additionsinput required, where to source it and the massive logistics being towards radial capacities. The table below details therequirement to move it to the plants,” he added. investment schedule plans in the Indian tyre industry. Apollo Tyres investing Rs 2,300 crore in Tamil Nadu and Gujarat,Meanwhile, SAIL is reviving Malavika Steels at Jagdishpur in Balakrishna Industries investing Rs 1,400 crore in Gujarat andUttar Pradesh. The TMT bar mill is expected to start production Maharastra, Bridgestone is investing Rs 3,210 crore in Puneby January 2012 with 150,000-tonne capacity. Corrugation and Pithampur, Ceat is investing Rs 340 crore in Maharastra,lines are already installed to produce 13,000 tonnes of Dunlop is investing Rs 450 crore in Assam, Falcon Tyres Rscorrugated sheets. Crash barrier line to produce 10,000 tonnes 570 crore in Uttharkhad and JK Tyres investing Rs 1,815 croreper year is expected to be installed by January 2012. in Tamil Nadu and Karnataka. Michelin group investing Rs 4,000 crore investments at Chennai, which is spread over aAgra footwear industry mulling consortium concept to period of seven years.take on ChinaSep 14, 2011, Business Standard High inventory cost hits bottomline of textile cos Aug 17, 2011, Business StandardAgra footwear industry, which is the largest footwearmanufacturing hub in India with estimated annual A fluctuating cotton and other raw material costs seem to havemanufacturing value of almost Rs 10,000 crore, is mulling taken a toll on bottomline of textile companies for the firstforming consortiums of individual units to cater to large export quarter. Companies like Aarvee Denim and Century Textilesorders. The idea is to combine manufacturing capacity of big have posted a dip in net profits for quarter ended June 30,units operating in the organised sector and stand in 2011. "Raw materials have risen in the recent past, especiallycompetition to Chinese firms, which are known to absorb large in terms of cotton. We have been running on high costexport orders and strictly meet delivery schedules. At present, inventory since sometime. This has led to pressure on ourAgra accounts for almost 35 per cent of the total footwear bottomline. Whats more, even the second quarter looksexports from India, while it also caters to 65 per cent of the difficult because we still have a high cost inventory," saysdomestic footwear market. Utsav Pandva, chief financial officer of Aarvee Denim and Exports Ltd.Footwear segment plays a significant role in India‟s leatherindustry. India is world‟s second largest footwear producer Talking about high cost inventory, Dilip Jiwrajka, managingafter China, accounting for 13 per cent of global footwear director of Alok Industries Ltd. said, "We have made aproduction of about 15 billion pairs. There are around 10,000 conscious decision to keep our cotton inventory low because offootwear manufacturing units in Agra operating both in the high prices. We now have a less than 30 days inventory andorganised and unorganised segments, of which 150 are run hand-to-mouth as far as cotton is concerned. This hassizeable with focus on the export market. Top players cater insulated us from constant fluctuations in cotton prices." On itsexclusively to exports with negligible contribution to the part, Aarvee Denim still has an inventory of nine million kg ofdomestic market. cotton meant for 4-5 months.Some global brands that source footwear from India, include ---------------------------------------------------------------------Zara, Esprit, Lumber-jack, Deichmann, Carrefour, Metro, HugoBoss, Pierre Cardin, Acme, Clarks, Deichmann, Ecco, Source of Information: I have picked articles from majorElefanten, Florsheim, Hush Puppies, Marks & Spencer, business dailies like:Nautica, Nike and Reebok. The Financial ExpressTyre industry to invest up to Rs 10,000-cr by 2013 Business StandardSep 8, 2011, Business Standard The Economic Times DNAThe domestic tyre industry has lined up investments worth over ReutersRs 10,000 crore between now August 2013. The additional Hindustan Times, etc.investment is in 19 tyre projects targeted for completion thisyear. A major chunk of the projects are coming up in Gujarat, Selection criteria: Automotive news, other sectors likeTamil Nadu and Maharastra. Energy, Power and any policy decisions related to Shipping/Transport/ Logistics industry.