GROWTH PROPECTS OF THRUST AREAS OF INDIAN EXPORTS

Assignment-1

News Articles of Engineering Sector in India

(Newspaper:- The Hindu, Business Section)

Submitted By: Digvijay Singh A1802011022 Sec-F, Roll no.-29

Greaves Cotton sells Chennai land to Radiance

February 10, 2012

SPECIAL CORRESPONDENT
Greaves Cotton of Thapar group has sold its four-acre prime land at Thoraipakkam here to Radiance Realty Developers India Ltd (formerly NAPC Properties Limited). This is among the big-ticket realty deals concluded in the recent past in the Chennai market. The transaction is reported to have cost Radiance a tidy Rs.80 crore. Radiance Realty is promoted by Varun Manian. The Manian family exited the infrastructure business by selling its stake in infrastructure arm NAPC to Vinci of France, one of the largest construction conglomerates in the world. Since then, Mr. Manian has gone on to train his focus on new initiatives of the family such as real estate and renewable energy. The property, it may be recalled, had come under the fold of Greaves Cotton in 1994 when it acquired the engine and infrastructure equipment business of erstwhile Enfield India, which later became Royal Enfield after its new owners, Delhi-based Eicher group, began focusing on the two-wheeler business. Sources said Radiance funded the land buy entirely through internal accruals. We are developing more than a million sq. ft. of high-end residential properties across prime residential areas in the city and Old Mahabalipuram Road, a top company official said. The company could develop the acquired site into a marquee high-rise ultra-luxury residential complex, it is learnt.

Sharda Motor opens R&D centre

February 10, 2012 Sharda Motor Industries Limited (SMIL), a Tier-1 supplier to auto industries, has opened a research and development (R&D) centre at Mahindra World City, near Chennai. SMIL had already invested Rs.30 crore in the facility and plans to further augment it to Rs.75 crore by 2014. Besides providing local support from concept to implementation state, the centre will help reduce cost and enhance performance through value engineering and value analysis, according a release.

Two directors in Infosys switch roles

February 5, 2012

SPECIAL CORRESPONDENT
Infosys announced on Friday that two directors of the company, B. G. Srinivas, Global Head of the Manufacturing and Engineering Business, and Ashok Vemuri, Global Head of Financial Services and Insurance Business, will be switching roles with effect from April 1, 2012. S. Gopalakrishnan, Executive Co-chairman, said, The rationale for the change is in keeping with the Infosys 3.0 strategy. The company board, he said, wanted to give them both exposure to different business realms. Mr. Vemuri and Mr. Srinivas joined the board in June 2011. While Mr. Vemuri will be responsible for business in the Americas, Mr. Srinivas will remain responsible for business from Europe.

Scania to set up CKD unit in Bangalore

February 1, 2012

SPECIAL CORRESPONDENT
Swedish commercial vehicle manufacturer Scania AB announced on Tuesday that it would establish a completely knocked down (CKD) assembly unit for truck and bus chassis in the Narasapura Industrial area in Bangalore. Henrik Fagrenius, Managing Director, Scania, said the facility would later be utilised for bus body building of city coaches, and as a service workshop. The company planned to invest Rs.150 crore next year, Mr. Fagrenius said. The first truck was expected to roll out from the facility in 2013, he said. Scania expects to employ up to 800 people in this facility over the next five years. The company expects that about 2,000 heavy haulage trucks and 1,000 inter-city buses and coaches to be rolled out from this plant during this period. The company also proposes to sell engines to its OEM.

TCS opens new facility in Silicon Valley

February 1, 2012 Expanding its presence in the U.S., IT major Tata Consultancy Services (TCS) has opened a new facility here which is welcomed by the U.S. lawmakers and the Californian government. Just a few blocks away from the Yahoo's corporate headquarters, the facility, among other things, will serve as the worldwide headquarters of TCS' Mobility Solutions Unit, which aims to bring the benefits of emerging technologies such as big data, analytics and mobility to enterprises across all industries. Speaking on the occasion, Congressman Mike Honda appreciated the efforts of Indian companies such as TCS in the development of Silicon Valley. Change in paperwork The part that we have to do is to provide the change in the paperwork that is required by the companies to go through to establish themselves so lot of necessary paper work, but unnecessary cumbersome, Mr. Honda told PTI after inaugurating the new TCS facility. On establishment of facility in the Silicon Valley, TCS Chief Executive Officer and Managing Director N. Chandrasekaran said, Silicon Valley is a perfect place for this new TCS customer collaboration centre, given the match between the innovative and entrepreneurial spirit of TCS and that of the Valley. The convergence of the innovation in the Valley with the highly scalable, high quality and cost-effective engineering strength of TCS will help jumpstart the powerful new phenomenon of the democratisation of innovation, he said. This was all about a set of front-end applications, which would enable any data that was sitting in the back-end to be analysed, delivered to any place to any type of mobile device, proactively so that decisions can be made, he said. As of now, the TCS Mobility Solutions has identified banking, retail and travel as focus areas. The California government said that the TCS's decision to choose Silicon Valley as the global headquarters for its Mobility Solutions and Next Gen Solutions Unit was a significant contribution to California's innovative economy. California is the global leader in high-tech employment and our office looks forward to working closely with TCS as they create valuable job opportunities for our citizens, said Deputy Director at the California Governor's Office of Business and Economic Development, Brook Taylor. TCS has been in the U.S. since 1979. Its new facility in the Silicon Valley is the latest addition to its growing operations across North America, where it now has more than 20 offices across the region, including four development centres and centres of excellence creating winning solutions providing its North-American customers with a competitive edge in the marketplace.

RWE to help Reliance Power in Jharkhand project

January 27, 2012 Anil Ambani-owned Reliance Power, along with Jharkhand Integrated Power Limited (JIPL), has roped in Germany based mining giant RWE Power International-RE GmbH for providing technical assistance and expertise in extracting coal from the mines allotted for the 4,000 MW Tilaiya ultra mega power project (UMPP) in Jharkhand. The Coal Ministry has allocated Kerendari B' and C' coal blocks in North Karanpura coal fields in Jharkhand to meet the fuel requirements of Tilaiya power project. The aggregate coal reserves of these mines are estimated at around 1.23 billion tonnes and the mine plans envisage a production level of 40 million tonnes a year. The mines are expected to commence production in line with Tilaiya UMPP around 2015. Under the terms of the memorandum of understanding (MoU), RWE will provide technical assistance relating to coal mine design and planning and engineering and procurement and commissioning of quality mining equipments for Kerendari BC coal mine. The MoU also provides for evaluation of geological data, assistance in the development of mine-related infrastructure, including maintenance facilities, assistance in identifying potential and implementing best practices in energy conservation, creation of quality control systems and standards, supervision of mine operations and implementation of international best mining practices at the mines. Reliance Power, JIPL and RWE would endeavour to develop and implement the coal mining at Kerendari BC coal block in a competitive manner and introduce contemporary technological standards, a statement said. The Tilaiya UMPP was allocated to Reliance Power under the provisions of a share purchase agreement on August, 7, 2009, after the company won the international competitive bidding (ICB) conducted for JIPL at a levelised tariff of Rs.1.77 per kWH. RWE Power is Germany's largest mine operator and power producer, generating electricity from coal, nuclear energy and gas with an installed generation capacity of 33,200 MW.

TCS gets nod for Indore SEZ

January 25, 2012

The Board of Approval (BoA) under the Commerce Ministry on Tuesday approved the proposal of Tata Consultancy Services (TCS) to set up a special economic zone (SEZ) at Indore in Madhya Pradesh. The BoA allowed L&T and Videocon Realty and Infrastructure to withdraw SEZ projects. The L&T project was to come up at Coimbatore in Tamil Nadu. We are not going to hold back on those who do not want to set up their SEZs and instead exit. The Ministry will never stand in their way and instead facilitate the process, a senior official said after the BoA meeting here.

The Videocon firm had approached the Centre to withdraw its project at Jalpaiguri due to latest business outlook in the Northern region of West Bengal. It had been granted a formal approval in May 2009. Eleven developers, including that of Parsvnath SEZ, had requested for extension of time for execution of their projects. Out of 381 notified zones, only 148 have become operational. The maximum number of SEZs is in sectors such as IT/ITeS, engineering, electronics, hardware and textiles. It also allowed the Videocon group to pull out from its SEZ project at Jalpaiguri in West Bengal and L&T from Tamil Nadu. Official sources said the green signal to TCS proposal and a few other promoters had been given at a time when SEZs had lost sheen as a vehicle of investment in the wake of imposition of Minimum Alternate Tax (MAT) on the SEZ developers and units in the zones. Slowdown in the realty market has also added to the uncertainty among developers. The Commerce Ministry, the nodal authority for the SEZs, seems concerned over the entrepreneurs losing interest in these zones, which were initially meant to be tax-free areas. SEZs will be strengthened if we allow people to come and go as and when they want, the official said.

Fiat to supply diesel engines to Maruti

January 19, 2012 Suzuki Motor Corporation on Wednesday reached an agreement with Fiat for the supply of Fiat's 1.3-litre MultiJet 75 hp BS-IV small diesel engine, produced under license by Fiat India Automobiles Ltd. to Suzuki's affiliate company, Maruti Suzuki India Ltd. (MSIL). One lakh engines As per the agreement, FIAL, which is a joint venture between Fiat and Tata Motors, will supply up to one lakh engines per year to MSIL starting from January, 2012, for three years. The engine will be installed on Suzuki branded vehicles produced in India by MSIL for the local market.

India seeks out to Abu Dhabi Investment

January 17, 2012 India on Monday invited Abu Dhabi Investment Authority (ADIA), world's largest sovereign wealth funds, to invest in the $90-billion ambitious Delhi Mumbai Industrial Corridor (DMIC) and other infrastructure funds.

Both countries also agreed to set up a joint working group to facilitate investment for this purpose. The issue was discussed between Commerce and Industry Minister Anand Sharma and Abu Dhabi Investment Authority (ADIA) Managing Director Sheikh Hamed bin Zayed Al Nahyan here. We have invited ADIA to invest in the DMIC and other infrastructure projects, Mr. Sharma said after the meeting. The ADIA, which is as large as $1 trillion, has expressed keen interest in investing in India. The ADIA will come forward to work with India in the DMIC project. We have agreed to set up a joint working group to work out the modalities. We will be happy to see ADIA participation in India's infrastructurebuilding, he said. Mr. Sharma said India planned to invest $1 trillion in infrastructure over the next five years. This is an opportunity to enter this huge market, Mr. Al Nahyan said. Keeping in mind the worsening investment climate in developed nations, both leaders agreed that the UAE and India should work towards a greater level of engagement. Besides infrastructure, the other areas where both sides can explore investment opportunities include the pharmaceuticals, services, engineering and agroprocessing sectors. ADIA has asked for more support in its exploration of opportunities in the Indian market. Mr. Sharma also said that the UAE should encourage other members of the Gulf Cooperation Council (GCC) to hold a third round of negotiations on the proposed Free Trade Agreement between India and the GCC at the earliest. The UAE is the biggest trading partner of India in the entire West Asia and North Africa (WANA) region and accounted for about 63 per cent of India's total trade with GCC countries in 2010-11. Bilateral trade between the countries has registered an over 300 per cent increase in the last five years and stood at $66.56 billion in January-November 2011.

Exports continue to stutter

January 17, 2012 The after-shocks of the economic slowdown in the U.S. and the impact of the debt crisis in the eurozone continue to weigh on India's overseas shipments that continued to grow at a slow pace of 6.7 per cent in December at $25 billion on year-to-year basis. Notwithstanding the continued slide in exports, the government expressed the hope that it would be able to achieve the $300 billion target set for the current fiscal. Trade deficit Exports in December were higher than in November, when overseas shipments grew by just 3.8 per cent. In sharp contrast, imports grew at a faster pace of 19.8 per cent year-on-year to $37.8 billion in December, translating into a trade deficit of $12.8 billion, Commerce Secretary Rahul Khullar said here.

During April-December this fiscal, exports aggregated $217.6 billion, a year-on-year growth of 25.8 per cent. From a peak of 82 per cent in July, export growth slipped to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October. If you get $80 billion exports in the remaining quarter (JanuaryMarch, 2012), you are looking at close to $300 billion. And imports may touch about $460 billion, Mr. Khullar said. During the first three quarters of the current fiscal, imports were up by 30.4 per cent at $350.9 billion. The trade deficit stood at $133.3 billion during the period. If the current situation continues and exports pick up during the next three months, you are looking at a trade deficit in the neighbourhood of $155-160 billion. Exports, by all major sectors, are doing well, he said. During April-December, 2011, engineering and petroleum exports were up by 21.6 per cent and 55 per cent, respectively, at $45.3 billion and $43.9 billion. Other sectors that registered healthy growth include gems and jewellery (38.5 per cent), ready-made garments (23.7 per cent), electronics (21.1 per cent), drugs (21.5 per cent), marine products (32.2 per cent) and plastics (43 per cent). Even today, exports have grown, taking into account all the corrections that have been made, all the deceleration that has taken place. At this rate, you are looking at a growth rate of 20 per cent during the fiscal. It could be more, he said. During the first three quarters of 2011-12, petroleum imports were up by 40.4 per cent at $105.6 billion. Other sectors which registered growth include gems and silver (53.8 per cent), machinery (27.7 per cent), electronics (21.1 per cent), chemicals (23 per cent), coal (62 per cent), fertilizers (35 per cent), vegetable oil (55 per cent) and iron and steel (12.1 per cent). On the export target of $500 billion by 2013-14, he said if demand did not improve in Europe and the U.S. in the coming months, it would be difficult to achieve the target. The year 2012 is going to be very difficult, it's too uncertain at this point of time. There are uncertainties prevailing in euro land and in the U.S., he said. Responding to the export figure for April-December 2011, FIEO President M. Rafeeque Ahmed said that while 25.8 per cent growth in first nine months looked impressive but the same was much less than 33.2 per cent growth achieved in first eight months of the current fiscal and pointed to challenging times ahead. He said that percentage growth in respect of most of the sectors had also come down at the disaggregated level. However, with still three months to go, we would be able to achieve over $280 billion in 2011-12.

Cash-rich PSUs asked to invest vigorously

January 12, 2012 The Prime Minister's Office, against the backdrop of economic slowdown, has directed cash-rich public sector undertakings (PSUs) to go for investments to the tune of over Rs.1.76 lakh crore, including Rs.1.41 lakh crore domestically to act as a stimulus in the next fiscal.

At a meeting chaired by Prime Minister's Principal Secretary Pulok Chatterjee, 17 companies with cash and bank balances in excess of Rs.1,000 crore were identified to undertake these investments primarily in the infrastructure sector, whose status will be monitored periodically. As per the decision, the PSUs will invest Rs.1.41 lakh crore domestically in 2012-13 and Rs.35,009 crore overseas, sources said here on Wednesday. The Principal Secretary observed that the PSU investment could provide stimulus to the economy and asked the companies to draw up credible investment programmes and implement those with vigour so as to achieve the maximum benefit for the companies themselves as well as the national economy. Among the companies, ONGC is projected to invest the maximum amount of Rs.53,526 crore Rs.33,065 crore in the domestic market and Rs.20,461 crore overseas. It is followed by NTPC with Rs.20,995 crore domestically and Power Grid Corporation of India with Rs.20,000 crore. Other companies identified for investments included Oil India, Coal India, BHEL, GAIL (India), Indian Oil Corporation, Engineers India and SAIL, they said. It was decided at the meeting that the CMDs of the companies would ensure that the projected investment plans were realised to the fullest extent, the sources said.

NEI plans unit in Gujarat

January 11, 2012 On an expansion mode, the CK Birla Group firm, National Engineering Industries (NEI), on Tuesday, said it would set up a new plant in Gujarat and acquire firms abroad to make its entry in the global market. India's largest bearing-maker is also focussing on the export market. Rs.1,100 cr investment We have decided to invest up to Rs.1,100 crore in the next five years to double our production capacity. We are setting up a new plant in Gujaratwe are also looking at companies in Europe and the U.S. for acquisition on which we will spend Rs.500 crore this year, NEI President and CEO Rohit Saboo told The Hindu. Stating that global acquisition was the logical route to make the NEI's entry into exports market, Mr. Saboo said once the company acquire a firm abroad, it would then go in for its capacity expansion to strengthen its international presence. We are looking at companies in the U.S. and Europe with an annual turnover of Rs.100-500 crore as we have many clients in these two territories, he said. Today, exports comprise about 7 per cent of our total turnoverwe expect this to double in the next three years, Mr Saboo said.

NEI crossed the Rs.1,000 crore turnover mark last fiscal and in 2011-12 it was likely to clock Rs.1,200 crore. In the next three to four years, we hope to cross Rs.2,000 crore turnover as we consolidate our leadership position in the Indian market and explore international markets, he added. To double capacity NEI, which today enjoys 25 per cent market share and has clients such as Maruti Suzuki, Tata Motors, Daimler (Germany), Hero MotoCorp and Bajaj Auto, will double its capacity in the next five years to 160 million bearings from 80 million bearings annually.

Mahindra Solar Rajasthan unit on stream

January 10, 2012 Mahindra Solar One, a solar power developer, commissioned its first 5 MW solar power plant. A part of the Jawaharlal Nehru National Solar Mission (JNNSM) policy, the project is located near Jodhpur in Rajasthan and was the first to achieve non-recourse financing in the industry. The engineering, procurement and construction (EPC) arm of Mahindra Solar, Mahindra EPC, has commissioned this project in a record time of 100 days and the plant is expected to provide solar electricity equivalent to around 60,000 rural homes and avoid emissions of about 8,000 tonnes of carbon dioxide annually. Mahindra Solar One is a joint venture between Kiran Energy and Mahindra and plans to play a larger role in solar power generation both as an EPC contractor in on-grid and off-grid and as a developer set up greater than 100 MW in the next 2-3 years. In 2011, it won a 30 MW bid under the Phase-1B of JNNSM. It has projects under development across Rajasthan, Maharashtra, Gujarat, Tamil Nadu and Karnataka. Speaking at the launch ceremony on Monday, Farooq Abdullah, Union Minister for New & Renewable Energy said, The New & Renewable Energy Ministry recognises the important role solar energy plays for our country's energy security. How this energy will be stored is the big challenge. Research is on in hydrogen and salts and batteries. It is an evolving technology and the costs are coming down. He advised the Mahindra Group to venture abroad with the solar energy initiative, particularly Africa where it is needed most, adding that in India wind energy generated around 17,000 MW of power and was adding 3,000 MW per annum. The other areas we are looking at are tidal energy and geo-thermal energy for which we are exploring Chhattisgarh and Ladakh. Anand Mahindra, Vice-Chairman & Managing Director, Mahindra & Mahindra said that India had no option but to look aggressively at solar energy as the energy demand was in the order of 75-100 gigawatts over the next decade.

All renewable energy initiatives require an ecosystem finance, technology and the access to rural areas. We aim to be one of the top three companies in this industry and Mahindra Solar One will provide a fillip to our nation's solar competencies.

Bosch plans Rs.2,200-cr investment in two years

January 5, 2012 Automotive components manufacturer Bosch on Wednesday announced that it would invest Rs.2,200 crore in India in two years. Bernd Bohr, Chairman of the Automotive Group, and Member, Board of Management, Robert Bosch GmbH, said the sum would be used for capacity augmentation, diversification and new technology development. A major portion of the investment will go towards expansion. Chennai plant Bosch is building a new electrical drives plant in Chennai, which will begin operations in 2012 and expansion plans are under way at the Nashik, Jaipur and Ahmedabad facilities. At Nashik, the production volume of classical nozzle holder went up from 17,000 units to 26,500 units a day and DSLA nozzle production rose from 18,000 units to 30,500 units a day. The production area is being expanded by 33,000 sq. metres. At Jaipur, new hangars are being commissioned and Bosch is constructing a new plant in Ahmedabad. Spread over 37,000 sq. metres, it will be functional in the first quarter of 2012 and will make hydraulic valves, power units and control blocks and cylinders. On the technology front, Bosch will assume worldwide responsibility in software engineering support for electronic control units (ECU) for vehicles with conventional drivetrain technologies as well as hybrid and electric vehicles for which more than 800 engineers in Bangalore and Coimbatore have been recruited. In the past year, Bosch has successfully worked on fuel economy technologies relevant to India and other emerging markets. Technologies such as the value motronic engine management platform were developed for the emerging markets in cooperation with Indian engineers. According to Dr. Bernd Bohr, Our joint efforts with Indian engineers have provided us with valuable insights into how Bosch technologies can be made more cost-effective across the board. Making Bosch automotive products accessible and affordable everywhere is one of our central aims and we see our India team contributing significantly on this front.'' In the area of safety systems, it is estimated that by 2015, 90 per cent of all new vehicles worldwide will be fitted with antilock braking system (ABS). In India, ABS is now featured only in about 13 per cent of locally sold vehicles. Bosch produces some three lakh ABSs a year at its Chakan facility. It also offers an affordable ABS for two-wheelers in India.

SAIL draws up Rs.70,000-cr capex programme

January 3, 2012 Steel Authority of India Limited (SAIL) has decided to not only focus on expansion and capacity addition in its Rs.70,000-crore programme but also shift its focus to increase the share of value-added products from 39 per cent to around 55 per cent in the next two years, to meet the emerging challenges. We have planned a Rs.70,000-crore expansion and modernisation programme which will be completed by 2013. Value-added products constituted 39 per cent of our total salable steel production in 2010-11, a marginal increase over two years ago. On completion of the current phase of modernisation, the share of value-added products is likely to increase to around 50-55 per cent of our total production, SAIL Chairman C. S. Verma told The Hindu . Mr. Verma said the new cold rolling complex coming up at Bokaro Steel Plant would boost the share of valueadded products which would target the auto and white goods sectors. It is the latest state-of-the-art mill capable of producing auto grade products. The capacity of the mill is around one million tonnes of CR and 3.5 million tonnes of galvanised products. SAIL has earmarked a capex of Rs.12,630 crore for 2011-12. Further, he said, SAIL was developing product suitable for hot stamping technology which is being introduced by auto companies to get low-carbon high-strength material. The company is manufacturing value-added steel at its five integrated steel plants in addition to the three special steel plants Alloy Steel Plant (ASP), Salem Steel Plant (SSP) and VISL. The ASP at Durgapur is specially designed for casting special steels such as austenitic/ferritic stainless steel and a variety of non-stainless steels, including bullet proof steel. The plant has a diverse portfolio of over 400 grades of alloy and special steels to cater to the requirements of niche segments such as defence, nuclear power, aerospace, railways and automobiles. The SAIL Chairman said the Salem plant produced a wide range of cold rolled and hot rolled stainless steel. The plant's products are available in austenitic, martensitic and ferritic grades in various finishes. VISL is able to produce over 700 grades of quality alloy and special steels to the defence and automobile segments besides heavy engineering and railways. Mr. Verma said for the defence sector, SAIL was manufacturing value-added steel in DMR (249A grade steel) for war ships, SAIL kavach, jackal grade for bullet proof vehicles and jackets and SAIL rath for Bofors guns. These special products and grades have helped SAIL establish itself as a world-class company for various high-end usages. SAIL's presence in certain segments such as auto, white goods and oil and gas, will get a substantial boost after completion of its current phase of modernisation, he added. He said the Indian steel market was experiencing change in the pattern of consumption of steel. Sectors such as auto, oil and gas, power are growing fast and even in the coming years likely to register annual average growth in the range of 12-15 per cent. The demand for products such as auto grade CR&HR, API pipes, CRGo, CRNO, alloy steel long products and stainless pipes is likely to grow. At present, the country is dependent on imports for most of these products.

Due to addition of new capacities in steel making it has become increasingly important that we grow our share of value-added products as selling only commodity products is not going to help in top line growth, Mr. Verma said.

TVS Motor develops technology to usher in common engine for two-wheelers

December 29, 2011 Two-wheeler maker TVS Motor Company has developed a new technology, automatic transmission, to deliver a compact engine layout that could be commonly used across product forms such as motorcycles, scooters and step-through bikes. Claimed to be a breakthrough initiative achieved through five-to-six years of intense research and collaboration with leading institutions within and outside the country, the new technology is expected to drive fuel efficiency by as much as 20 per cent when compared to the conventional technology in place today. Low carbon emission The new technology employs automatic transmission in place of the conventional variable transmission technology. It facilitates easy and effortless change of gears. This is done through electronic control, which picks the gear ratio in line with the driving condition. As a consequence, the engine runs most efficiently and, hence, obviates the need for a clutch. This technology also delivers the lowest CO2 (carbon dioxide) in scooters while providing for low floor board and space for luggage,'' said Harne Vinay Chandrakant, President, New Product Development, TVS Motors. The company has developed the technology on a highly innovative vehicle layout with compact packaging and light weight construction presently with a 110 cc four-stroke engine with two independent, high precision actuators for the clutch and gear shift operations, mounted directly on the engine itself. The technology can be applied to make engines with higher cubic capacity, say up to 250 cc,'' Mr. Chandrakant told a news conference here on Wednesday. Files for patent To a question, he said the new technology effort would cause minimal changes in the engine production line. He, however, would not hazard any guess on the cost benefit to the company arising out of the new technology-led movement toward a common engine platform. He said TVS Motors had filed patent for the technology in India and abroad. TVS Motors would be looking at launching a scooter with the new engine first and other models later.

Fielding a range of questions, he said, We will deploy the new technology in all our new product launches in 2013.'' The new engine with the new technology would be lighter by 5 kg compared to the existing one, paving way for lighter vehicles which translated into lower emissions.

KG basin panel meets today to study RIL plan

December 27, 2011 The Management Committee (also known as the oversight panel) on KG basin D-6 block will meet on Tuesday to consider Mukesh Ambani-owned RIL's (Reliance Industries Ltd.) $1.529-billion field development plan (FDP) for developing four satellite fields in the flagging KG-D6 block. The committee, which includes officials from the Petroleum and Natural Gas Ministry and the Directorate General of Hydrocarbons, will consider the approval to the FDP for D-2, D-6, D-19 and D-22 fields, surrounding the now producing D-1 and D-3 fields. It is expected that the committee could give a partial approval to the FDP. RIL has maintained that these fields can produce 10 million cubic metres of gas a day by 2016 and could help in reviving production from the block. The committee had in its on December 2 refused to approve the investment plan, saying that the proposal made in December, 2009, was based on the prices of that year, and new rates need to be worked out at the current prices. RIL and its partners BP and Niko Resources of Canada were of the view that reworking rates would require several months and would lead to loss of the four-month weather window in the Bay of Bengal that began this month. However, RIL agreed to cap spending at $1.529 billion plus or minus 15 per cent on the four satellite fields, including $30 million pre-development activity cost that RIL and BP have been insisting on taking up during the next quarter for pre-engineering and other studies. RIL has so far made 18 gas discoveries in the KG-D6 block.

Corporates pay less advance tax

December 17, 2011 Advance corporate tax paid by the top 94 Mumbai-based corporate houses was down marginally at Rs.43,123 crore (Rs.43,586 crore) in the first three quarters of this fiscal, according to Income-tax Department sources. These companies, which contribute about 70 per cent of overall corporate tax collection in Mumbai, paid Rs.16,691 crore (Rs.16,750 crore) for the December quarter.

One time gain The fall in advance tax collection is more disturbing considering that companies pay about 75 per cent of their tax commitment for the fiscal in the December quarter, said a cement company executive. With no indication of a respite from high interest in the RBI policy on Friday, we expect the next few quarters to remain challenging; companies conserve cash by trimming down on spends and tightening capital expenditure, he added. Piramal Healthcare, which paid Rs.3,543 crore last year, has paid just Rs.5 crore (Rs.2,650 crore) in the first three quarters this fiscal. The company had one-time revenue from exit of core business last year. The hardship faced by the oil and gas sector was more than highlighted from the fact that Indian Oil, which paid Rs.1,276 crore in tax last fiscal, has not paid advance tax till the December quarter. Similarly, BPCL has also skipped payment so far against Rs.112 crore paid last fiscal. Holcim Group companies Ambuja Cement and ACC saw payouts doubling to Rs.113 crore (Rs.60 crore) and Rs.95 crore (Rs.40 crore), respectively, largely due to lower base last year. Aditya Birla Group companies UltraTech Cement and Grasim paid lower advance tax of Rs.210 crore (Rs.230 crore) and Rs.120 crore (Rs.160 crore). Lafarge's payout was cut to Rs.45 crore (Rs.68 crore). In the metals space, Hindustan Zinc paid Rs.400 crore (Rs.325 crore), while Hindalco maintained its payment at last year's level of Rs.200 crore. Engineering and infrastructure major L&T's payment was lower at Rs.350 crore (Rs.370 crore). The higher tax payment by some of the metal and cement companies amid slowing infrastructure activities was mainly due to sharp raise in selling price and increase in their production capacity, said an analyst. Auto majors Tata Motors and M&M disappointed with a lower payout of Rs.80 crore (Rs.220 crore) and Rs.210 (Rs.230 crore), respectively, even as Bajaj Auto raised the payment by 22 per cent to Rs.450 crore (Rs.370 crore). So far, so good The direct tax collections for the April-November period registered a growth of 20 per cent at Rs.3.04 lakh crore (Rs.2.54 lakh crore). The government has set a target for direct tax collections of Rs.5.85 lakh crore for this fiscal. Gross corporate tax collected was up 20 per cent at Rs.1.99 lakh crore (Rs.1.67 lakh crore) over the same period last year.

4:31 swap for Kinetic Engg-KMCL merger

December 10, 2011 The Firodia Group has decided to merge two group outfits Kinetic Engineering (KEL) and Kinetic Motor Company (KMCL).

A scheme of amalgamation has been proposed and an application is intended to be made to the Bombay High Court. As a result, 4 shares of KEL will be issued for every 31 shares of KMCL. Post-merger, the stake of the promoters in Kinetic Engineering would stand at 52.85 per cent against 57.49 per cent now. The merger is expected to create value addition by diversification of value and value addition through manufacturing business as well as investment into Mahindra Two Wheeler Ltd. (MTWL). KMCL transferred the operating assets of its two wheeler business to Mahindra Two Wheeler (MTWL) in November 2008, for cash and for a 20 per cent strategic stake in MTWL. Speaking to this correspondent, Sulajja Firodia Motwani, Managing Director, KEL, said, We have successfully built KEL's business from an automotive business to an automotive systems business. We had invested around Rs.55 crore two years ago in a new unit to cater to the demand for Tata Nano. However, with depressed market, the demand has not kept up with expectations over the last 18 months. We expect this to pick up and go to 6,000 units a month in the near future. This unit also cater to the complete gear box for light commercial vehicles made by Mahindra Navistar and Piaggio.'' The board of KEL approved resolutions to appoint Ms. Motwani as Vice-Chairperson of KEL and seek approval from the Reserve Bank of India for the extension of the FCCBs issued by KEL worth $18 million, from February 2013 to February 2014.

Work begins on Trent aero engine plant

December 8, 2011 Rolls-Royce and Hindustan Aeronautics Limited (HAL) have commenced construction of a new manufacturing facility in Bangalore. This state-of-the-art facility is owned by the International Aerospace Manufacturing Pvt. Ltd. (IAMPL) a joint venture between Rolls-Royce and HAL, formed in 2010. The new facility, built on a 7,200 sq. m. area, will produce components for the technologically advanced Trent family of civil aero engines, as well as for a number of marine and energy gas turbines. The plant located near the HAL airport will go on stream in 2012. IAMPL will incorporate the latest RollsRoyce manufacturing techniques and will create job opportunities for highly skilled technicians and engineers in India. P. V. Deshmukh, Chairman, HAL, in a release said Rolls-Royce and HAL have been strategic partners since 1956 when HAL started producing the Orpheus engine under licence. As a result of our strong collaboration, we have progressively contributed to the development of the Indian aerospace industry. This ground-breaking event marks a milestone in the relationship between both companies that will extend well into the future. Anil Shrikhande, India President for Rolls-Royce, said, This new manufacturing facility demonstrates our commitment to the long-standing partnership with HAL. We plan to develop IAMPL as a centre of excellence.

IAMPL furthers our common objective of enhancing high value-added manufacturing in India and will also contribute to the country's growing aerospace and technology industry. Rolls-Royce started its association with the Indian aerospace sector in 1932 with its Gypsy engines on the first Tata Aviation aircraft. Today, it has customers in each of the company's global market sector civil aerospace, defence aerospace, marine and energy. Together, there are more than 1,300 Rolls-Royce engines in service in India. Rolls-Royce has about 200 employees in India and 650 engineers work on a sub-contract basis in engineering centres in Bangalore.

Wipro Infra venture with Kawasaki Heavy

December 8, 2011 Wipro Infrastructure Engineering, the global hydraulics business of Wipro, has announced a joint venture with Kawasaki Heavy Industries in India to set up a large manufacturing facility for producing hydraulic pumps for excavators. The joint venture will be called Wipro Kawasaki Precision Machinery. The investment will be Rs.50 crore and the plant, to be set up in Bangalore, will have an initial capacity of 4,000 pumps.

Exports register a meagre 10.8 % growth in October

December 2, 2011 The tremors of eurozone debt crisis as well the downslide in the U.S. economic growth and the policy paralysis' in the government have started impacting exports, which registered a meagre 10.8 per cent growth at $19.8 billion in October, the lowest in the last two years. The growth rate has been the lowest since October, 2009, when it contracted by 6.6 per cent. On the other hand, imports continued their upward journey rising by 21.7 per cent at $39.5 billion during the month, leaving a trade deficit of $19.6 billion, the highest ever in any month in the last four years. This is being attributed to expensive crude oil and vegetable oils, according to the Commerce Ministry data released here on Thursday.

From a peak of 82 per cent in July, export growth has slipped to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October. In October, oil imports grew 20.73 per cent at $10 billion, whereas non-oil imports rose by 22 per cent to $29.4 billion. But, for the cumulative April-October period, exports aggregated to $179.7 billion, showing a handsome growth of 45.9 per cent, thanks to the sterling trend witnessed in the previous months of the current fiscal. A steady rise of 30.9 per cent in imports for the seven-month period to $273.4 billion has left the trade gap widening to $93.7 billion. Commerce Secretary Rahul Khullar has expressed concern over the increasing balance of trade and said at this rate, it might breach the $150-billion mark in the current fiscal. During April-October, oil imports stood at $81.9 billion, an increase of 40 per cent. Non-oil imports rose by 27.1 per cent to $191.5 billion. Reacting to the sharp dip in export growth in October, Federation of Indian Export Organisations President Ramu S. Deora said exports would suffer in the third and fourth quarters of the current fiscal. He expressed serious concern over drop in exports in value terms for products such as engineering.

Caterpillar plans Perkins engine plant

December 1, 2011

SPECIAL CORRESPONDENT
Caterpillar Inc., a leading maker of construction and mining equipment, is setting up a greenfield project to produce Perkins branded 4000 series engines in an yet-to-be identified location in India. The project will involve an investment of $150 million. The proposed project will be the first Perkins engine plant for Caterpillar outside the U.K. Addressing a press conference here on Wednesday, Rich Lavin, Group President and Executive Office Member of Caterpillar Inc., said the proposed Perkins engine plant would have an initial capacity of 3,000 numbers a year. This would be scaled up to 5,000 a year subsequently. He said the engine project would be implemented through a new legal entity. To a question, he said Caterpillar would be hoping to export half the number produced at the proposed plant to serve the needs of countries in and around the region. Hitherto, the requirements of these nations were met through supply from the U.K. plant, he added. Mr. Lavin said Caterpillar would primarily focus on industrial clients to hawk its Perkins engines. The plan was to produce a range of Perkins engines from 750 kVA to 2500 kVA.