Daily News -03/02/2008

Two wheelers sales dip

The two leading bike makers in the country, Bajaj Auto and Hero Honda, have reported a dip in February sales on the back of falling demand for the entry-level models and restricted finance availability. Bajaj Auto saw a decline of 8 per cent in motorcycles sales at 158,662 units in February as against 171,780 units sold in February 2007. A de-growth of about 13 per cent in the 100cc segment has offset stable sales in the 125cc plus segment, resulting in an overall de-growth for the company.
Hero Honda had its biggest fall in monthly sales in FY08, as it slipped by more than 5 per cent at 265,431 units as against 280,515 units in the corresponding month of the previous year. The company has blamed lack of finances as the reason for diminishing growth in the two-wheeler market. Hero Honda sells 13 models in the market compared with 9 models of Bajaj Auto including scooters.
Maruti posts a meagre 0.4% growth in Feb sales
India’s largest car maker, Maruti Suzuki (MSIL) registered a paltry rise in the domestic sales at 0.4 per cent at 59,311 units in February. The company had sold 59,095 units in the same month of the previous year. The growth driving A2 segment, comprising cars such as Swift and Alto, grew by a mere 2.7 per cent during the month. The total sales in the segment stood at 44,059 units. The SX4 segment grew by 8.9 per cent at 1,958 units compared with the corresponding month of the previous year. Exports grew by a healthy 15.5 per cent at 4511 units during the reporting period.

Shipping Corporation in talks with Korea’s STX for shipbuilding JV
State-run Shipping Corp. of India Ltd (SCI), the county’s biggest shipping firm by fleet size and revenues, is in talks with South Korean shipbuilder STX Shipbuilding Co. Ltd for a joint venture even as India looks to scale up its shipbuilding capacity to tap the global shipbuilding boom.

Ruchi Soya in tech deal with US company
Edible oil and soya foods maker Ruchi Soya Industries (RSIL) is planning to expand its flagship brand Nutrela to functional foods and beverages. As part of its growth strategy, it has signed an exclusive technology licensing agreement with NutriJoy, a US-based firm with key business of commercialisation of patented research technology for functional foods and beverages.
Ruchi Soya has drawn up business plans to introduce a new product range of food enriched with vital nutritional additives and cooking oils in the premium segment. This product range will provide consumers health benefits through foods beyond basic nutrition. The health food space in India is still at a very nascent stage. Hence, we will be looking into the specific needs of the Indian consumer before going ahead with the development for the products.

GTC set to demerge realty business, list it separately

Cigarette manufacturer GTC Industries in the board meeting has granted an in-principle approval to demerge the tobacco and the real estate business into two separate entities. The de-merged entities would be listed separately on the stock exchanges in India.
GTC Industries will demerge its real estate assets spread across Mumbai, Baroda and Hyderabad into a separate company. The demerged entity would then become a real estate development company while GTC would remain the cigarette manufacturer with brands
like Panama and Chancellor. The de-merged company would form joint ventures and develop real estate assets.

140 Indian companies in Russian trade fair

IANS

Moscow, March 2 (RIA Novosti) Around 140 Indian companies will be in the spotlight when they showcase their products at the international trade fair being organised in St. Petersburg March 11-14.

Companies from 17 countries, including India, Germany, Denmark, Britain and China, will participate in the four-day event.

'The first day of the fair will be devoted to Indian industry to commemorate the Year of Russia, which is now under way in India,' said Igor Kirsanov, director general of the Restek Company and organiser of the event.

The latest innovations in the fields of engineering, metalworking, metallurgical products and car parts will be displayed at the four pavilions of the Lenexpo exhibition complex.

The huge Indian delegation to the fair in St Petersburg is a clear indication that Indian companies are interested in cooperation with their Russian counterparts.

The biggest draw will be the new Indian car Tata Nano, the world's cheapest car, tagged at just $2,500. According to the organisers, the Russians are eager to see the car, though it is not clear whether the car will be brought here.

The Indian companies are keen on supplying car parts for the automobile assembly plants here. Toyota launched its assembly plant in 2007 and General Motors in February this year. Nissan, Suzuki and Hyundai will also set up their ventures soon. Ford has its plant in the Leningrad region.

According to Mikhail Oseyevsky, deputy governor of St Petersburg, besides the automotive industry, Indian businessmen are also interested in cooperation in the information technology and metallurgical sectors.

Alongside the Indian delegation, companies from the Czech Republic, Finland, Germany, Denmark, Britain, China, Turkey, South Korea, Austria, Croatia, Belarus and Ukraine will participate in the fair.

Global giants such as General Motors, Ford, Electrolux, Siemens and Bosch will showcase their products in the exhibition.

India's Sharp Tools and Russia's Elslar are likely to sign an agreement for a joint venture company - named Esweld - that will manufacture components for welding operations in the Elektrostal region near Moscow.

Weekly Report - 01/03/2008

MACRO ECONOMIC FACTORS

Inflation figures stood at 4.89 % at the end of this week compared with 4.35% last week.

The yield on the 10-year G – Sec has remained flat at 7.04%.

Crude oil price stood at US$101.84 per barrel by the end of the week. Over the week crude oil

prices hovering around US$99.23 – 102.59 per barrel.

Rs per US$ exchange rate closed at 40.02 by the end of the week. Exchange rate Rs/US$
continued to trade around Rs.39.75to 40.02.