1. Malabar Group lines up capex of Rs 1,000 cr in the next two years
N V Vijayakumar, Umesh M Avvannavar, Bangalore,
Actress Kajal Aggarwal inaugurated fifth retail outlet of Malabar Gold & Diamonds at Kormanagala, Bangalore.
June 21, 2014, DHNS
The Malabar Group, which has a presence in the jewellery and
diamond retail, property development, information technology and
furniture segments, has drawn up capital expenditure plans of Rs 1,000
crore for the next two fiscal years.
Taking the
competition from peers and global players head-on, Malabar Gold &
Diamonds, the group’s jewellery and diamonds retailing arm, is planning
to expand further in the Asia-Pacific region. In an interaction with
Deccan Herald on Saturday, Malabar Group Chairman M P Ahammed said that
the company has seen huge potential emerging in the APAC region.
“We
will spend a portion of our capital expenditure on expanding our
jewellery and diamond retail business overseas. Since we have a sizeable
number of Indian expatriates in the APAC region with a hunger for gold,
we hope that we can enter the market easily. Besides our experience in
the retailing segment, local demand will give help us leverage our
business,” he said.
Studying new markets
“We have started one showroom in Singapore and are
planning to open two more. We have already undertaken studies for the
Malaysian and Indonesian forays where we will have 4-6 showrooms soon,”
Ahammed said.
Malabar Gold & Diamonds currently has a
sizeable presence in the Middle East with showrooms in Bahrain, Saudi
Arabia, Kuwait, Qatar, Oman and the United Arab Emirates.
“We
have 43 showrooms abroad which are mainly in the Middle East with
another showroom in Singapore. Since the Middle East market is saturated
as far as expansion goes, we are looking forward to exploiting
opportunities in the APAC region,” Ahammed said.
When asked about
the company’s Karnataka plans, he said Malabar Gold & Diamonds
presently operates 12 showrooms in the state.
Government policies
“Our
Karnataka experience is prompting us to open up 8-10 new showrooms,
including one each in Gulbarga, Bellary, Belgaum and Shimoga. We have
identified a few other places in Bangalore city as part of the expansion
plans. But these investments will depend on government policies spelt
out in the Budget,” he said.
Talking on the challenges faced by
the industry, Group Executive Director O Asher said that the main
hurdles for the industry are the 10 per cent import duty and the Reserve
Bank of India’s stipulation that gold purchases from banks and star
trading houses should be used for domestic and import purposes at the
rate of 80 and 20 per cent respectively.
“We look forward to a
business-friendly policy in the upcoming Budget. The industry expects
import duty to come down to four per cent from the current 10 per cent.
If that happens, the market will flourish further in India,” Asher said.
2. Shaped by smartness: A new tryst with urbanscapes
N V Vijayakumar & Umesh M Avvannavar, July 14, 2014, DHNS:
How smart are we being while looking at setting up smart
cities in a cultural context even as we face the ever-widening gap
between governance and delivery? How will they fit into uniquely Indian
requirements, our fragmented cultural ethos?
The
Narendra Modi government’s initiatives to set up 100 smart cities throws
open enormous opportunities for a young breed of technocrats to do
wonders with new urbanscapes and innovation on the go.
Smart cities are places where technology plays a major role in delivering citizen-centric governance.
The governance will ensure wider citizen participation in
decision-making via online voting, referendum, programme implementation,
monitoring mechanisms, measuring project progress and implications.
Deliverables
include services like electricity, water, sanitation and recycling,
ensuring 24/7 water supply, traffic and transport system that work on
data analytics to provide efficient solutions to ease commuting,
automated surveillance and building security systems, Wi-Fi
connectivity, houses that ensures high-speed connectivity, the works.
India’s
cities evolved in a well defined trajectory out of religious
foundations, and under colonial rule, inter-city trade became a
springboard to spurring new levels of urban growth.
In the
post-Independence period, massive government investments in PSUs and
research establishments played a major role in further evolving cities.
But the post-liberalisation era since 1991 brought a paradigm shift to
the cityscape propelled by weakening of agricultural activity and
emergence of manufacturing along with services.
Migration with its cultural and spatial conflicts brought intensified the chaos gripping India’s urban spaces.
Says
Centre for Excellence in Urban Governance Chairperson at IIM Bangalore,
Gopal Naik: “Urban life in India is deteriorating and we need to
address this. One way to do this is to create smart cities. In fact, in
some sense we do not have many options.” .
Why smart cities?
With India’s urban population
predicted to reach 590 million by 2030 and most of them staying in at
least 60 cities, the government might need an investment of $1.2
trillion to upgrade urban infrastructure.
Schneider Electric
Infrastructure Limited Managing Director and Vice-President Prakash
Chandraker supports the Modi-led government’s plan.
"Smart
technology solutions can optimise key infrastructure and reduce
complexity to improve efficiency of such cities. Smart cities are the
right way forward in promoting urbanisation across India, since they
leave a lower carbon footprint and higher efficiency through
integration and coordination of various infrastructure services. Against
this backdrop, we are looking forward to providing smart city
solutions," he said.
The scope to do more with technologies and
innovation via technical integration for real-time interconnected data
through open platforms is indeed high.
“There are smart city
solutions for virtually every public utility which can help save up to
30 per cent energy, reduce water consumption by 15 per cent and travel
time by up to 20 per cent," Chandraker said.
Gopal Naik notes
that the competitiveness of an economy should be based on knowledge
capital, social capital, environmental capital and physical capital in
order to be sustainable. “This is what smart cities are all about," he
says.
The trajectory from an agrarian economy to an
industrialised one is notable in the case of a city like Coimbatore.
Agriculture activity has flourished around Coimbatore, and units for
agri-related ancillary industries manufacturing pumpsets and other
agricultural equipment have mushroomed by the hundreds in the city’s
exurbs.
Capital raised from agrarian activity has helped local
entrepreneurs raise funds for their ventures which have expanded to
servicing the automobile and ancillary industries.
"Here, we
should understand that cities should not be built, instead they should
emerge. Urbanisation should evolve from the growth that is happening
from below and the capital generated from that area.
So
agriculture can play a pivotal role in this shift to industrialisation
and such cities can logically evolve into smart cities," says professor
at the National Institute of Advance Studies Narendar Pani.
The
‘satellite city’ experiment in India was a crashing flop. “Kengeri
satellite city, bordering Bangalore, visualised during the eighties was a
failure. Rather than structuring the city, we should give primacy to
the economic aspect, giving a livelihood for its citizens.
We have to make them cost-competitive so that they produce world-class products which can compete with other cities,” Pani says.
Given
the deficiencies in basic amenities like clean drinking water,
sanitation, public transport and lighting facilities plaguing India’s
cities, going in for high-tech solutions off the bat will not work.
Citizen
participation and involvement will be key differentiators. Building
greater civic sense and educating residents on their role in ensuring
overall liveability in the city and its management will be critical
success factors for any initiative to be successful.
Cost-competitiveness
Cost-competitiveness
of smart cities will be another factor to reckon with. Cheap capital,
labour, infrastructure and resources will help manufacturing and service
sector growth.
“Unlike China, India can’t compel its rural
workforce to stay in smart cities and work in the manufacturing sector.
So providing cheaper labour is challenging,” Pani says.
Taking
into account the unique nature of each city, Pani advocates evolving
different models with intense application of world class technologies to
make smart cities cost-competitive.
"Cities can be developed
through the engineering approach and the diagnostic approach. In the
former, we have to start from the scratch. But in the latter, we have a
living system where we intervene and come up with some changes,” he
said.
“Since Indian cities are famous for steep rise in real
estate costs, we should have a land bank system so that land can be
assessed and availed for industrial and development purposes
systematically,” Pani says.
Mantri Developers Chairman and
Managing Director Sushil Mantri says, “The government should opt for a
public-private partnership model without burdening the exchequer.The
government can play the role of facilitator by providing land, water,
power etc., while actual development of urban infrastructure can be left
to private players.”
Mantri says initiating projects such as this
would not only address the increased demand for real estate and urban
infrastructure, but also spur employment growth driven by rapid
urbanisation.
“The government will have a huge role to play in
the entire process by providing single window clearances which can help
projects get off the ground quickly, thereby, bringing overall costs
down for these projects.”
Puravankara Projects Limited Group CEO
Jackbastian Nazareth says that acquiring land, building infrastructure,
fusing local and international know-how, assembling the right financing
structures and putting together key partnerships between private, public
and community are equally challenging.
“Private sector
participation along with the government on an equal basis will usher
efficiency into operations and counter interruptions in execution in
these projects,” Nazareth says.
If India is to move 250-300
million more people into urban spaces over the next two decades, it
needs to build 700-900 million sq metres of commercial and residential
space each year — or, more than two Mumbais every year.
Questions of connectivity
Smart
projects are already being fleshed out from their bare bones in
Ahmedabad-Dholera Investment Region of Gujarat, and Shendra-Bidkin
Industrial Park city and Dighi Port Industrial Area, both in
Maharashtra.
An overriding digital infrastructure will be necessary to broaden customer interfaces and facilitate better service delivery.
Last-mile
connectivity with robust thorough ICT infrastructure can bring in real
social change, Cisco in India Chief of Staff — Smart+Connected
Communities, and Executive Director for Globalisation Angshik Chaudhuri
says.
His company is expected to play an active role in setting up high-end communication infrastructure for upcoming smart cities.
"Investing
in these smart cities with the collaborative efforts of a young and
aspiring population and supportive digital platforms providing
citizen-centric amenities can help us reap the dividends of
urbanisation," Chaudhuri says.
The Narendra Modi-led government’s first budget has made its intentions clear on putting in place efficient infrastructure.
Smart
cities can be planned as hubs of economic activity and bustling
socio-economic spaces powered by manufacturing and services creating a
beneficial cycle of job creation, concomitant growth and renewed
investments.
While the government has allotted Rs 7,500 crore to
smart cities in the current Budget, clarity on how it conceives the idea
and its implementation is yet to emerge — a choice between the
greenfield or brownfield approaches for one.
Or, a PPP model.
Finding the right balance between policy, imagination and implementation
will be crucial even as we lay the first building blocks of a hopefully
smart (or even existential) urban future. Who knows, it may evolve into
a bigger and more “inclusive developmental” model than we expect to see
right now.
3. Dealers flog special editions to create new customer keys
Umesh M Avvannavar, Jul 23, 2014, DHNS :
Planning to buy a new car? How about special
edition? With the number of car dealers are increasing in double digit
numbers within a city, the dealers are wooing customers with special
edition models.
The car loaded with high sporty mag
wheels, sun-roof, stickering, shark fin antenna, front, rear and side
skirts, spoilers, body graphics, body dual colours for external look.
Interiors look is also changed with leather seat covers, touch screen
music systems, leather seats, coloured mats, navigation systems and so
on.
Talking to Deccan Herald, Maruti Suzuki Dealer Bimal Auto
Agency CEO Naveen Sarawgi said, “We have been doing ‘Bimal Edition’
since 2002. Many customers trusted our judgement and asked us to
accessorize the car with a certain budget and they really liked and
appreciated what we did for them. So, we decided to keep a few such cars
ready in the showroom - and these sold like hot cakes. Now it is a key
differentiation and many customers come to us from far flung areas only
for ‘Bimal Edition’ cars.”
“Bimal Edition is uniquely modified based on specific
requirements of the customer and makes a style statement. We never
exactly repeat the same customisation,” Naveen Sarawgi added. The cost
of customisation on a Bimal Edition car starts from Rs 25,000 and can go
as high as Rs 1,50,000 also.
Advaith Hyundai Director (Sales & Marketing) L N Ajay Singh said,
“Bangalore customers go for the best models and they are gadget freaks
and the age group of between 25 to 40 years would like to load their
cars with lot of accessories. They want to upgrade to music system of
touch screen system and with high end accessories. This is where we
started Advaith Limited Edition cars.” For Advaith Hyundai, this concept
started in 2005 onwards, where cars were not fully loaded from the
manufacturers.When asked about why special edition cars, Ajay Singh said, “It gives a sporty look and stands out in the crowd.”
Echoing
similar views, Nandi Toyota, Sales Manager, Deepak Nair said, “To sell
more accessories and meet expectations of customers as far as looks,
entertainment, comfort and convenience are concerned. We started selling
‘Nandi Special’ from 2007.
Customer needs
“Customers
have the option of customising according to their needs and
requirements in all aspects. Nandi Toyota gives a warranty of three
years for all Toyota Genuine Accessories fitment,”Nair said.Mandovi
Motors Private Limited, Vice President (Marketing & Sales),
Yeshwant Rai, said, “Special edition or customised car is a ready
offering to customers who have fancy for car accessories . This concept
has started almost 10 year ago when the supply of cars became more than
demand. Dealers started customising cars and displaying in showrooms.This
attracts customers who wants unique look for their car with a different
taste and wants to be identified differently on roads. Generally the
customers in the age group of 25 to 35 years are the buyers of such
cars.”
Rai further added that, “Customised car concept is similar
to that of a mannequins in an apparel shop where one can have the exact
idea as how it looks.”
Additional cost for such cars will be in
the range from Rs 50,000 to Rs 2 lakh and 10 per cent of our total sales
contribution is from such customised cars specially in the premium
hatchback segment, Rai added.
Moreover, special edition cars help
dealers to sell more cars from 5 to 15 per cent. In fact, for
accessories sales, the Bimal Auto Agency is rated among the top dealers
in India. “8-10 per cent of our total sales comes from these Edition
cars. But we are highly passionate about creating these cars, proudly
displaying and demonstrating them and we get immense satisfaction when
each of these beauties find a equally passionate owner,” Naveen Sarawgi
said.
Naveen Sarawgi recollects one of the incident “that the
former MD of Maruti Udyog Limited Jagdish Khattar visited our showroom
and really motivated us to do the Deziner Car Expo at the St Joseph’s
Ground and we got fantastic footfalls as it was the first of its kind
event in Bangalore. We booked 27 Bimal Edition cars at that event. We
continue to keep participating and displaying such Edition cars at
various car melas and expos - and across all our seven sales outlets.”
For
Advaith Hyundai, 5 per cent of its total sales are special editions
cars, and on an average of Rs 40,000 to Rs 60,000 and above accessories
are sold per special edition. Advaith is third in South India in
accessory sales.
Ajay Singh adds that “Customers acceptance has
increased over a period of years, people with passion towards their cars
don’t mind spending money on Edition cars.”
Big challenge
Speaking
on challenges Deepak Nair, said “Finding a customer for particular
colour will be a challenge and also certain accessories once fitted
cannot be removed.”Few customers expressed their opinion, “We were
looking around for a car and my son always wanted a car with a designer
edge and we happen to drop-in to Maruti Showroom near our vicinity Bimal
Auto Agency.
They had couple of customized cars displayed at
showroom which were tastefully done. All of us really got excited and
were thrilled to see these cars customized like this which we had never
seen before,” said Srinivas.
One more customer Ved Prakash said,
“We are a family of auto enthusiasts and had moved to Bangalore recently
and were looking to buy new Maruti Swift and jazz the same with some
accessories. We were in for a pleasant surprise seeing the range of
brand new Maruti cars fully decked up with lovely accessories. It was a
very nice feeling as we got a lot more options and possibilities to jazz
up our car.”
4. Blackberrys looking at acquisition route to expand market reach
Umesh M Avvannavar, Jul 24, 2014, DHNS:
Premium apparel brand Blackberrys, owned by
Mohan Clothing Company Pvt Ltd, is looking at acquisitions to further
push its growth plans and widen its portfolio, Blackberrys
Vice-President — Marketing and Sales Yogesh Tiwari said.
“We
are likely to go in for inorganic growth by acquiring companies. We
have roped in a couple of research firms to scout for potential
acquisition targets,” he said.
The company is currently expanding its pan-India footprint by opening more company-owned large and small format stores. Blackberrys presently has large format stores with a size of 4,000-8,000
square feet. “We have already established 10 stores in Tier 1 cities
across India and plan to add up to three more. Our company-owned and
operated showrooms are 2,000 square feet each. We currently run 200 of
them and will add 30 more in the current fiscal,” he said.
Value curveOn
the revenues front, he said, “The company had Rs 750 crore by way of
revenues in the last fiscal and by the end of the current fiscal we will
reach around Rs 1,000 crore.”Blackberrys makes 60 per cent of its
merchandise inhouse while the rest is manufactured by channel partners.
The Blackberrys brand has also unveiled its Urban line for the upcoming autumn-winter season.
“We
want to stay ahead of the value curve with new products which will
cater to the demands of fashion conscious urban youth, not with the
usual sports line. Our products in this segment are clean washed line
cloth,”s aid Tiwari. Besides its presence in dress lines like trousers, khakis, shirts, suits
and jackets, Blackberrys also brings out accessories like belts,
wallets, ties and socks.
The Gurgaon-based company started its operations in 1991 and went in for a rebranding exercise in 2005,
Talking about the company’s strategy for the current fiscal, he said Blackberrys will focus Indian market only.
“We
have enough opportunities in the Indian market and do not want to
venture into exports. We will think of exporting to markets in the
regions like SAARC, APAC and Gulf once we stabilise in the Indian
market,” he said.
N V Vijayakumar and Umesh M Avvannavar, Aug 04, DH News Service:
Dell India plans to launch more products in its Consumer and
Small Business vertical this year even as the company is cashing in on
the ever burgeoning demand from the tech-savvy young generation, by
opening 400 stores by March 2015 from 250 stores presently.
In
an interaction with Deccan Herald, on Monday while opening 250 store
here, Dell Inc Consumer and Small Business Sales Vice-President Phil
Bryant said the company has realised the importance of retailing to
reach out to the customers.
“We have tied up with big store
formats, franchise model and formed partnership with retailers to expand
our retail presence,” he said.
“Currently, we have a presence in 150 cities and are aiming to cover 400 cities by March 2015,” Bryant said.
Dell
India’s Consumer and Small Business include different ranges of
laptops, desktops, ultrabooks, all-in-ones and Venue tablets. “India is
one of our top 10 markets and it is important that we bring our latest
offerings here,” Bryant said.
Dell India Executive Director
and General Manager (Consumer and Small Business) P Krishnakumar said
the company has lined up many campaign activities like Back to School
Season, Back to College and Dell Champs where they have introduced the
new Inspiron 3000 Series of laptops, Inspiron 20 3000 Series and 23 5000
Series All-in-One (AIO) desktops.
“We are also doing well on the online front with our
own online portal and tie-ups with homegrown entities like Flipkart and
Snapdeal,” he said. “Dell is not selling its printers, ink cartridges
and 17-inch notebooks in India. We will bring these products within this
financial year,” he added.
“We will be bringing new products
in our Inspiron laptop and All in One desktop range and Venue Tablets
in time for the upcoming festive season,” Krishnakumar said.
The
company has attained No 1 position in the Indian PC market with a 23.1
per cent market share across segments in the first quarter of 2014,
according to the International Data Corporation (IDC). With 33.1 per
cent market share, Dell is also the number one notebook brand in India.
Dell
showed consistent growth over the last few quarters in the consumer and
small business segment to capture number one spot in the first quarter
of calendar 2014 with 21.4 per cent share. Dell also leads the small
business segment with overall share of 26.2 per cent (number 1 in
notebook with 61 per cent and desktop with 15.4 per cent).
“India
is one of our top 10 markets and it was important that we bring our
latest offerings here. As with laptops, we would like to have leadership
position in the tablet market as well in the next few quarters,"
Krishnakumar said.
6. Fiat to launch more products before 2014 end Umesh M Avvannavar, Bangalore, Aug 08, 2014, DH News Service
Cashing in on the burgeoning car market in India, Fiat, the
world’s seventh largest automobile manufacturer, is set to launch three
products before 2014, Fiat Group Automobiles India President and
Managing Director Nagesh Basavanhalli said.
Launching
Fiat’s new compact car ‘Punto Evo’ on Friday, he said, “We are now
strengthening our product portfolio in India with cars that are designed
and engineered keeping Indian conditions and requirements in mind.”
According
to top officials, the next product to follow in two months will be the
much awaited Avventura, a contemporary urban vehicle on the lines of
compact utility vehicles like Ford’s Ecosport and Renault’s Duster.
“The
Avventura’s global launch will be in India. The vehicle is made and
designed for urban youth, for someone who is on the go, the young
generation who like to mix work with pleasure,” company sources said.
The
launch of the compact SUV Avventura, which was showcased at the Auto
Expo in February, is likely to happen within 60 days around the festival
season.
“The company will announce bookings for the Avventura,
which will take on Ecosport and Duster. It will come to India as a CBU
and is targeted at consumers who wanted to be noticed. It is like a
fashion statement,” company sources said.
Lined up for launches
ahead will be Abarth-500, a luxury high-end racing hatchback, which will
be a Completely Built Unit (CBU), and a new brand in the Fiat stable.
Fiat
is planning to boost sales by expanding its dealership network from the
present 116 outlets to 150 by the year-end. Basavanhalli said the
company will continue to expand its presence in the Indian market. The
company currently has 116 out lets in 93 cities across 23 states in
India.
The updated model compact car Punto Evo is priced at Rs
4.65 lakh-Rs 6.78 lakh for the petrol version, while the diesel variants
will retail at between Rs 5.37 lakh and Rs 7.33 lakh (ex-showroom
Bangalore). The model will be placed in B+ segment, competing against
the likes of Maruti Suzuki’s Swift, Hyundai’s i20 and the Honda Brio.
7. Hyundai Motor India to launch three new products
Umesh M Avvannavar, Bangalore, Aug 12, 2014, DHNS :
Hyundai Motor India Limited (HMIL), the country's largest
car exporter and the second largest car manufacturer, is planning to
launch three new products in the Utility Vehicle (UV) segments in the
next 2-3 years, a top company official said on Tuesday.
HMIL
Executive Director (Sales and Marketing Division) Young Jin Ahn said,
“UV is the fastest growing segment in India which consists of compact
SUV (Sports Utility Vehicle) and MPV (Multi-Purpose Vehicle). The
segment is growing at a pace of over 35 per cent in India and many
customers have strong aspirations to buy such products.” “The
aspirations of young customers who want to go out and showcase their
SUVs are met by such products for which pricing of UV starts below Rs 10
lakh,” Ahn said.
The Ford Ecosport and Renault Duster have
already tasted success in these segments and there is still a need for
variegating product offerings in these segments were Hyundai wants to
have a presence. Hyundai which had a market share of 7 per cent in 2011
from the rural market has raised it to 20 per cent as of January 2014.
Automobile companies believe that rural markets are
growing at a very fast pace due to the disposable income of rural
customers. This shows the trend purchase pattern in rural markets in the
past few years. The company aims to add more rural sales outlets (RSO)
to 335 from 260 in 2012, and will increase its sales and service network
across the country from 1,000 to 1,805 outlets by the end of 2015, Ahn
said.
The South Korean car maker plans to increase sales at an
average annual pace of 15 per cent in the next three years to help the
company fully utilise its India capacity of 640,000 units a year and
expand its market share in the passenger car segment to 26 per cent from
22 per cent now.
On Tuesday, HMIL expanded its compact car
portfolio with the launch of the Elite i20, priced between Rs 4.9 lakh
and Rs 7.80 lakh (ex-showroom Bangalore). The second generation i20
Elite, which made its global debut in India, will compete with the likes
of Maruti Suzuki's Swift and Volkswagen’s Polo.
The Elite i20
will be available in both petrol and diesel options. While the petrol
version has been priced at between Rs 4.9 lakh and Rs 6.58 lakh, the
diesel variants are tagged at Rs 6.20 lakh to Rs 7.80 lakh (ex-showroom
Bangalore).
The new model, on which the South Korean
manufacturer has invested Rs 1,050 crore, will replace the existing i20
model. “We remain committed to the Indian market. The all new Elite i20
will help us further enhance the company's market share in India,” HMIL
Managing Director & CEO B S Seo said.
8. DSK Hyosung will set up Rs 400-cr plant in Karad
Umesh M Avvannavar, Bangalore, Aug 13, 2014, DHNS
Premium motorcycle maker DSK Hyosung plans to set up a new
assembly plant in Karad near Pune, a top company official said on
Wednesday.
With this plant, the company hopes to
increase the percentage of localisation. In an interaction with Deccan
Herald, DSK Motowheels Pvt Ltd Chairman Shirish Kulkarni said, “We are
going in for an investment of Rs 400 crore in our new plant and our new
products will be rolled out of this plant by end-2015. We have signed a
technical agreement and the investment sharing agreement is yet to come.
Products from the Karad plant will feature more localised content and
help bring down prices.”
The company’s current major investment
revolves around the setting up of the new Karad plant. “The plant will
also house an R&D centre and will play a crucial role in customising
new bikes and scooters,” Kulkarni said.
“We started assembling Hyosung superbikes under the
brand name of DSK Hyosung since 2012 at our facility in Wai,
Maharashtra. Currently, we assemble both bikes and engines at our
facility. We assemble 14 bikes in a single shift today. Going forward,
in line with growing demand, our plant is fully equipped to double our
shift to match market requirement.”
“As a superbike assembling
company, our efforts have always been into localisation as much as
possible so that we are able to offer our customers the best price
points. We are currently working on increasing the localisation element
in our bikes to 10-15 per cent and plan to further raise this in
future,” Kulkarni said.
He said that as a result of sustained
efforts, DSK Motowheels has been able to break through the threshold
barrier and bring down costs from the Rs 2.79 lakh - Rs 5.8 lakh range
in 2012 to Rs 2.63 lakh - 5.75 lakh.
The company sold over 1,850 bikes last year and hopes to achieve the target of 3,000 units across different variants this year.
“The
superbiking phenomenon is still largely evident in the bigger cities,
and hence, we are doing extremely well in cities like Mumbai, Bangalore,
Delhi, Pune, Kolkata and Chennai, while efforts to ramp up in tier II
and III cities are ongoing,” Kulkarni said.
9. In the genes: Incubating the stuff of biotech dreams
N V Vijayakumar and Umesh M Avvannavar, Aug 18, 2014, DH News Service : Banking on solid research output and entrepreneurial insight
combined with a discerning talent pool, Bangalore is charting its own
course in the growth story of India, cementing its place in a changing
global order with a slew of disruptive technologies.
Inspired
by the Silicon Valley mythology that modern-day innovation happens in
garages out of groups of students freed from the straitjacket of
structured thinking, Bangalore has already established its information
technology prowess by mentoring startups with cutting-edge technology
and giant IT companies. The city is now trying to leapfrog into the
biotechnology realm, replicating its IT journey in association with
government research centres and private partners.
The Centre for
Cellular and Molecular Platforms (C-CAMP), an initiative of the
Department of Biotechnology, Government of India, along with the
institute for Stem Cell Biology and Regenerative medicine and National
Centre for Biological Sciences, forms the bio-cluster in Bangalore and
as a part of its mandate focusses on startups by giving access to
high-end infrastructure, expert guidance and cutting-edge technology.
“We are acting as an enabler of bioscience research
and entrepreneurship by providing research, development and training in
state-of-the-art technology platforms. Besides developing and
establishing new high-end technologies within and outside the Bangalore
bio-cluster, C-CAMP is an enabler of scientific success by providing
technologies and expertise to researchers in academia and industry,”
said C-CAMP Chief Executive Officer Prof Ramaswamy.
C-CAMP offers
eight high-end technology platforms and training to life science
researchers from academia and industry like imaging facilities, flow
cytometry, mass spectrometry, protein technology core, high throughput
screening, fly facility and intellectual property management and a
‘Technology Transfer Office’.
Considering the vacuum in the
academic-industry interface, C-CAMP was envisioned as a major platform
for technology, industry-interaction and incubator which will assure the
success of scientific entrepreneurial talent. “C-CAMP will allow
investigators to use techniques as tools and not be limited by
technological barriers while pursuing challenging scientific questions,”
Prof Ramaswamy said.
Startup ecosystem
C-CAMP
is carving out a niche with its startup ecosystem which has funded 40
companies till date and will incubate 150 more in the next five years.
C-CAMP adopts a multi-disciplinary approach, which enables collaboration
between lifesciences, engineering and businesses to find solution for
day-to-day problems.
C-CAMP Director and Chief Operating Officer
(COO) Dr. Taslimarif Saiyed says, “We still consider ourselves early in
terms of activities but, in this short span we have felt that in a way,
due to long gestation period, lack of mature ecosystem and need for
in-depth knowledge of the filed, Biotech startups are a lot more
difficult to launch and run compared to startups in the information
technology space.
Besides access to business mentorship, C-CAMP
provides scientific guidance and access to R&D infrastructure. We
are excited about innovative start-ups we are involved with and
supporting their first phase of long journey.”
With its focussed
mandate to strengthen and empower innovation research capacities,
C-CAMP provides an enabling ecosystem for the biotech entrepreneur. “An
academic environment allows you to invent the future. What is really
notable about C-CAMP is the access it provides to high quality
infrastructure, which includes instruments and equipment, uninterrupted
power supply and water, laboratory, central lab services, core
facilities and conference room services,” says Ramaswamy.
Biotechnology
Industry Research Assistance Council (BIRAC) has introduced the
Biotechnology Ignition Grant (BIG) scheme, designed to stimulate
research discoveries by providing grants for further development and
maturation of these discoveries.
C-CAMP has been chosen as one
of three BIG partner organisations by DBT to nurture innovation and
inventions which are at an embryonic stage and help them reach
proof-of-concept (PoC) levels.
Biotech clusters
The
government of India in its 2014-15 budget has proposed to set up three
biotech clusters across India. Besides Bangalore, Mohali and Faridabad
have got mandates to start biotech clusters with specific focus areas.
Mohali will devote itself mainly to agri-biotech research activities and
Faridabad will focus on health-related biotech research.
“Bangalore
wants its biotech cluster to be devoted to the entire life sciences
sphere, from biology at atomic to ecological level. It should have
institutions which can focus on short and long-term research dealing
with the range of temporal and spatial areas,” Ramaswamy says.
Bangalore
is competing with Hyderabad, Pune and New Delhi in expansion of biotech
research and industrialisation. Hyderabad set up Genome Valley, a
biotech space years ago. Pune has good laboratories, while Delhi has
strong academic and product lineups. Even the physical space for biotech
institutions allotted in these cities compares positively with
Bangalore.
C-CAMP saw the first graduating batch of six entities
from the BIG scheme on June 18 this year. They included Achira Labs,
Codon Biosciences, Pandorum Technologies, Sea6 Energy, Vikas Mehra &
Team, and Western Range Biopharmaceuticals. These companies gained
thorough knowledge on scientific depth and IP strategy, differentiator
and competitive advantage, commercialisation prospects, market strategy
and business model and funding at C-CAMP.
Along with BIRAC,
C-CAMP has funded 40 companies with Rs 50 lakh each at the concept
level. “In addition to funding, we make available highly thriving
academic environment, high-end lab facilities, mentoring, business angle
and IP regulatory help.” Saiyed said.
C-CAMP, the National
Center for Biological Sciences (NCBS) and the Institute for Stem Cell
Biology and Regenerative Medicine (inStem) presently comprise the
Bangalore Bio-Cluster. These entities bring together unique individual
capabilities and a shared multi-disciplinary approach to creating an
interactive bioscience and technology research enterprise.
“Besides
having an integrated vision of developing cutting-edge scientific
discoveries, the cluster will translate these discoveries into tangible
technological development in the broader field of life sciences. We have
already given a proposal to the Department of Science on how the
cluster should be configured; it is yet to be accepted. We are seeking
total investments of Rs 500 crore to leverage our activities further,”
Ramaswamy says. Matching technology with skills
Besides
providing platform technologies, C-CAMP imparts technology training
programmes to generate a pool of experts who can proficiently utilise
high-end scientific technologies available in scientific organisations.
“We
want to focus on the development of new high-end technologies through
multi-disciplinary collaborations. Here, a major chunk of the research
will be focussed on next-generation sequencing (genomics), protein
technology core facility,” Ramaswamy says.
“At C-CAMP, in
addition to promotion of entrepreneurship, as many as 200 organisations
have come to our campus and used our facility. About 800 to 1,000
scientific studies has been carried out. We are also developing new
capabilities fairly in terms of methodologies and high-end equipment.
This is to remain cutting-edge, as otherwise, we will do something someone else has already done,” Saiyed added.
Sailaja
Nori, co-founder director — research & development of Sea6 Energy, a
startup working on micro-algal biofuels, says that Sea6, which was
incubated at IIT Chennai, was shifted to Bangalore upon realising the
advantage of C-CAMP.
“Sea6 Energy has identified the crucial
technology elements that will be needed to develop seaweed biomass
derived biofuel as a viable replacement for liquid fuel. Along with our
network of partners, we are working towards improving the cultivation
and conversion technology of seaweed to fuel,” she said.
Solid
flow of funding is concern enough for researchers in a country where
youngsters are reluctant to come forward to take up research in the pure
sciences. Here, C-CAMP is charting its own course with solid support.
“We
want to put in place the infrastructure and then entrepreneurs will
come to avail of them. We are looking at funding from external agencies,
both private and individual to enhance our research and entrepreneurial
support system,” Ramaswamy said.
Astra Zeneca India Foundation
came in with an endowment fund of Rs 50 lakh three years ago. In terms
of incubation, C-CAMP presently has eight companies under its belt.
Innovations nurtured on C-CAMP’s premises include technologies to
generate transgenic hydra and planaria, nanotech solutions to prevent
chemical toxicity for farmers and technologies to generate transgenic
cell-lines.
Researchers have the option of giving their work to
companies for licensing or become entrepreneurs themselves. Financial
interest has not been lax. Investment bankers like Kotak Mahindra Bank,
Venture East Ventures and others have been approached to look at these
start-ups and help them further.
Unlike the world of overnight
dotcom success, research in the life sciences requires multiple layers
of testing and validation which will consume enormous time, money and
resources. The C-CAMP experiment could be a foundation stone for bigger
things in biotech entrepreneurialism — where research and zest for
knowledge will trump risk aversion and profit chasing. **********************************************
10. Tata Motors to invest Rs 3,500 crore in new products
Umesh M Avvannavar, Bangalore, Aug 19, 2014, DHNS :
It plans to launch the hatchback Bolt by the end of the year
Tata Motors will invest upto Rs 3,500 crore into the
development of new products over the current year, which will be divided
between the passenger and commercial vehicles divisions, Tata Motors
Senior Vice-President (Programme Planning and Project Management) Girish
Wagh said on Tuesday.
In a bid to regain market share
and fuel growth in the domestic business, Tata Motors will launch one or
two new products in the passenger vehicle segment every year. “The
company has a product pipeline on hand till 2020 across segments,” Wagh
said. It plans to launch the hatchback Bolt by the end of the year.
Four pillars
Over the past year, Tata Motors has embarked on a
journey called HorizonNext, a customer focussed strategy based on the
four pillars of intense products focus, enriched purchasing experience,
world-class manufacturing quality and consistent quality of service.
The
Zest is the first car from Tata Motors in four years. The base 1.2
litre petrol variant of Zest starts at Rs 4.68 lakh while the base 1.3
litre diesel variant starts at Rs 5.73 lakh (ex-showroom Bangalore).
The diesel automatic version of the Zest will be priced at Rs 7.10 lakh (ex-showroom Bangalore).
The
compact sedan Zest competes with established brands like Maruti Dzire,
Honda Amaze and Hyundai Xcent. The Zest is being manufactured at Pimpri
and Ranjangaon near Pune. The company has recruited more than 3,000
people and trained more than 2,000 of its personnel exclusively for Zest
customers.
The company also launched an industry first
service offering with ‘333 confidence’. This includes a warranty of
three years or upto 1 lakh km distance covered, annual maintenance
contract of three years or upto 45,000 km and free 24X7 roadside
assistance service for three years.
According to the company,
ARAI has certified that the 1.2-litre petrol Zest delivers 17.6 km per
litre while the diesel version delivers 23 km per litre.
“With 29
segment-first features, the Zest is the first all-new vehicle in the
Horizonext journey with our commitment to bringing disruptive innovation
into this segment of car buyers,” Wagh said.
The Zest Diesel AMT
will have dual drive modes — City and Sports Mode — while the petrol
comes with Sports mode, city mode and eco mode.
The petrol
version is being shipped with Revotron 1.2T engines, the first of the
new family of petrol engines from Tata Motors. The diesel trims come
with 1.3-litre Quadrajet engines, developed in collaboration with
Italy’s Magnetti Marelli.
Premium motorcycle maker DSK Hyosung plans to
set up a new plant in Karad near Pune. With this plant, the company
hopes to increase its percentage of localisation. In an interaction with
Deccan Herald, DSK Motowheels Pvt Ltd Chairman Shirish Kulkarni shares
his experience.
In which year did you start assembling the Hyosung bikes? How was the experience?
We
started assembling Hyosung superbikes under the brand name of DSK
Hyosung from 2012 at our facility in Wai, Maharashtra. DSK Motowheels
had the opportunity to enter the superbike segment, and we were more
than thrilled to take on the opportunity. Immense learning followed and
the commitment to bringing superbikes into India turned absolute.
What are the investments you have made till today? How big is the plant?
Being
a leading super biking brand of global repute, Hyosung is known for its
high-end biking experience, extended product line, technology and
quality. Since the inception of DSK Motowheels in 2012, we have made
suitable investments in our plant to assemble Hyosung superbikes.
Currently, we assemble both bikes and engines at our
facility. We assemble 14 bikes in a single shift today. Going forward,
as per growing demand, our plant is fully equipped to double our shift
to match the requirements.
What are your future investment plans?
Currently,
our major investment revolves around the setting up of our new plant
coming up in Karad near Pune. With this plant, we hope to increase the
percentage of localisation. The plant will also house a R&D set-up
and play a crucial role in customising new bikes and scooters.
What are the challenges you see in this industry?
With
increasing income levels, high levels of market exposure and global
lifestyles, the superbike segment in India is capturing the imagination
of Indians today.
Having said that, the segment on the whole, is
still in a nascent stage and extremely niche at the moment — compounded
by the challenge that India is an extremely price-conscious market.
Hence,
it becomes extremely critical to strike the perfect balance between
pricepoints and value proposition offered to customers. While the
phenomenon of superbiking is majorly an metro one, there is huge
untapped potential in the tier II and III markets.You cannot ignore the
fact that India is an extremely lucrative market and luxury buying,
whether cars or bikes, has been on the rise.
The last few years
have witnessed a slew of international brands entering the market vying
for a share of the superbiking market pie. The result is that as
competition hots up, the Indian consumer stands to gain.
What is the size of the bike industry in India, more specifically, in the entry levels and cruise segment?
India
is the world’s second largest two-wheeler manufacturer in the world.
This segment dominated production volumes and exports in 2012-13,
accounting for about three-quarters of the total automotive production
in the country. With the increasing number of brands entering the Indian
market, the country has exhibited huge business potential, which goes
on to prove that the projected growth rate of 6-8 per cent in 2013-14
and growth in sales from 15.9 million in fiscal 2013 to 34 million by
fiscal 2020 is achievable.
Any plans to release 150-cc bikes in the near future?
We
have concrete plans to venture into this segment. However, we are
currently focusing on the superbiking range. Once our new facility is
established and the market is mature, we will be targeting the
aspirational spirited youth with our stylised new 150-cc bikes.
What has your major competition been so far with respect to Indian players in the same segment?
It
depends on whether you are looking at the picture holistically. While
categories may have other players in the market, DSK Hyosung is the only
brand which offers customers an entire range or portfolio of products,
catering to a varied biking performance that takes into account need,
speed, taste and budgets.
What has the response been in terms of sales volumes in the previous quarter?
Growth
in terms of sales has been phenomenal for the previous quarter. We have
witnessed around 80-90 per cent year-on-year growth this year when
compared to the same period last year.
What is good is that we
have grown organically in terms of sales and network presence. While we
have achieved growing sales numbers through our current dealerships, our
network presence has gone up to 37, which includes tier II and III
cities. This goes on to reiterate our network strength with the
strongest and most well entrenched presence across the country in the
superbiking segment ensuring unparalleled reach, unmatched products and
world class service offerings.
What has the response been in the Indian market to bikes in the 600 cc and 700 cc categories?
The
600-700 cc segments are niche ones and DSK Hyosung has the distinction
of identifying and introducing this mid-segment range to the Indian
market and consumers.
The good news is that the segment has
caught on very well, reiterated by the fact that our luxury cruiser, the
Aquila PRO GV 650, has been our biggest success last year. It received
overwhelming response winning several awards and accolades from the
media, customers and critics alike. Apart from this, our classic
cruiser offering the ST 7 has also generated a lot of response and
excitement in the market.
Of the models in the market which do you
see as the frontrunner with respect to sales volumes?The frontrunner
with respect to driving sales volumes has been the 250-cc segment due to
affordability and size, which suits Indian conditions and
sensibilities. The high-end cruiser bikes have their own charm and a
niche audience, which is also growing.
Do you have any localisation plan to become cost-competitive?
As
a superbike assembling company, our efforts have always been into
localisation as much as possible so that we are able to offer our
customers the best pricepoints. We are working on increasing the
localisation of our bikes at 10-15 per cent and will increase it in
future.
As a result of sustained efforts, we have been able to
break through the threshold barrier and bring down costs from Rs 2.79
-5.8 lakh in 2012 to Rs 2.63 – 5.75 lakh.
Till today, how many Hyosung bikes have been sold? Which region gives you the advantage over your rivals?
We sold more than 1,850 bikes last year and hope to achieve the target of 3,000 units across different variants this year.
As
mentioned earlier the superbiking phenomenon is still largely seen in
major cities, and hence, we are doing extremely well in cities like
Mumbai, Bangalore, Delhi, Pune, Kolkata and Chennai while efforts to
ramp up in tier II and III cities are ongoing.
Umesh M Avvannavar, Bangalore, Aug 23, 2014, DH News Service
With the announcement of new partnership agreement between
SPAR International one of the world’s largest food store retailers with
over 12,000 stores worldwide and Max Hypermarket India Private Limited
part of the Dubai-based retailer Landmark Group, the company is planning
to open 30 Spar Hypermarkets operational nationwide by 2019.
An
investment of about Rs 600 crore has been infused into the business and
the company foresee retail sales exceeding €300 million by 2019.
Talking
to Deccan Herald, Max Hypermarkets Managing Director Viney Singh said.
“We will see over 30 SPAR Hypermarkets operational nationwide by 2019.
Thirteen of our existing hypermarkets will be converted to the SPAR
brand in the coming months and a further 20 stores will be opened
nationwide over the next five years.”
The store format will
include the SPAR best practices in concepts, customer experience and
merchandising. “Currently, we have 13 Hypermarkets which will be
converted to the SPAR brand by the year end.”
In the next five years,
20 new SPAR Hypermarkets are planned to be launched in India. In the
current financial year, Max Hypermarket is planning to open four
hypermarkets.
Our previous presence in the market provides a strong
foundation to grow the brand in the years ahead and we look forward to
bring quality fresh foods, low price and a convenient shopping
environment to consumers in India.
Our partnership with SPAR is
in the form of License agreement, in which Max Hypermarkets is
responsible for the entire business operations – from capex outlay to
day-to-day operations. Management control also rests with Max
Hypermarkets.
SPAR provides knowledge transfer and brings with
it best practices in international retailing and technical expertise to
ensure that the brand is accurately represented. This also ensures that
the local partner retains financial independence to deliver the best
solution for each market.
N V Vijayakumar and Umesh M Avvannavar, Aug 28, 2014, DH News Service: Leading foot-wear, apparel and outdoor adventure gear brand
Woodland is betting big on China, one of the rapidly growing retail
markets in the world, by opening 25 new stores in that country in the
next 2-3 years.
According to Woodland Managing
Director Harkirat Singh, “Today, we have two Co-Co (Company Owned,
Company Operated) stores in Hong Kong and a presence in over 50 other
multi-branded retail outlets. The product acceptance and consumer
response there has been encouraging and we do intend to add at least 25
stores within the next 2-3 years in the China-Hong Kong. We have
earmarked capex of Rs 50 crore in this market for this fiscal.”
Woodland,
the flagship brand owned by Delhi-headquartered Aero Club Ltd, operates
in the footwear, apparels, accessories and shoecare segments and
exports to Canada, Africa, West Asia and Eastern Europe.
“Though
competition in the Chinese market is fierce and challenging, we see a
huge opportunity for international retailers to expand in this market.
Keeping in mind all these factors, we decided to foray into China and
have already established our presence in the Hong Kong market, a gateway
to China,” he said.
Since the consumer response from the
region has been encouraging, Woodland took the next step of opening
standalone stores. “Though standalone stores are an investment for the
brand, they are more of a landmark in a town glorifying the brand.
Opening up more stores will help expand our footprint in the market,”
Singh said.
Talking about the strategy to expand, Singh said
Woodland has been present in China for a long time now, initially for
global sourcing trends and later through distributors selling its
products.
“Foreseeing the huge market potential, we have been
working extensively to understand the Chinese market better. Like any
new market, the Chinese population too has its own buying trends,” he
said.
Woodland has seen consistent growth at a pace of 30 per cent
every year, of which 25 per cent of the businesses has been coming in
from the international markets.
The footwear and apparel
major is targeting revenues worth Rs 1,300 crore in fiscal 2014 and
focusing on expansion and growth in Tier II and Tier III cities of
India. In 2013-14, the company's turnover was Rs 1,000 crore.
14. Precot Meridian to invest Rs 200 crore in Hassan unit
Umesh M Avvannavar, Bangalore, Aug 30, 2014, DHNS :
Leading yarn and fabrics manufacturer Precot Meridian Ltd is
planning to invest an additional Rs 200 crore at its technical textile
plant in the Hassan SEZ, which the company had established in June 2013.
Talking
to Deccan Herald, on the sidelines of State Level Textile Investors
Meet on Saturday, Precot Meridian Limited CEO and Director Ashok
Kulkarni said, “Last year, we invested Rs 189 crore in Hassan. Now we
are committed to an additional equivalent capacity at an investment of
roughly Rs 200 crore in the next fiscal.”
With promoter funding
and a loan from ICICI Bank, the company is currently raising the
required capex for the project. It will hire an additional 400 employees
for the unit, Kulkarni said.
The integrated technical textile plant produces
fibre-to-finish products using 100 per cent cotton. The fabrics are
non-oven manufactured under high water pressure. They are also used in
hygiene, health and healthcare products made with natural, biodegradable
raw materials using ecologically sustainable methods that meets
European Union, Japan and US pharmacopeia standards.
Precot
Meridian is a leading player in the textile industry, with annual
turnover of Rs 627 crore in fiscal 2014 and targeted revenues of Rs 750
crore in the next fiscal.
The company started production in 1964
with initial capacity of 12,096 spindles at Kanjikode in Kerala. It now
has units in the four southern states of India namely, Tamil Nadu (six
units in Coimbatore), Kerala (Kanjikode and Palakkad), Andhra Pradesh
(Hindpur) and Karnataka (Gowribidanur and Hassan) with total spinning
capacity of 2,25,000 spindles and 117 looms.
Kulkarni welcomed
the state government’s New Textile Policy as it facilitate emerging
technical textiles in critical areas such as production, technology,
research and development. The policy will encourage integrated
development in the sector aiming to sustainability of the textile units
in the State.
Kulkarni urged the state government to scrap VAT (value added tax) as Maharashtra and Gujarat have done.
Precot
Meridian currently exports its healthcare products like cosmetic pads,
baby wipes and observant cotton to Germany, UK and Eastern European
nations.
The gap between power production and consumption is widening
in India and is set to further widen with the government’s thrust on
manufacturing. Since power outage has become the order of the day,
industrial consumers are left with no other option but to use diesel
gensets. Banking on this space, Satara-based Cooper Corporation Private
Ltd, a company which manufactures different types of gensets and
engines, aims to leapfrog its Rs 600 crore turnover to Rs 1,000 crore by
2015. In an interaction with Deccan Herald’s N V Vijayakumar and Umesh M
Avvannavar, Cooper Corp Chairman and Managing Director Farrokh N Cooper
shares the importance of technology in the manufacturing sector.
Edited excerpts:
The
genset market is highly competitive with overseas and local players.
What differentiates you from your peers in the Industry?
Since diesel
prices are shooting up in the country, cost per unit of power produced
from gensets will also escalate. Here, technology plays a pivotal role
in the segment. Our technical association with Ricardo UK helped us in
this regard.
The Cooper engines are designed by Ricardo. The designs
with thrust on innovative technology are now a priority for Cooper. We
had the foresight in 2008 to rope in the services of Ricardo UK to
create an engine family which would meet the latest global emission
norms.
Our inhouse research and close association with Ricardo has
created the Central Pollution Control Board (CPCB) II Emission Limits
for diesel engines up to 200KVA. We plan to increase the range upto 1
MW. There is an Engine Management Unit (ECU) in our two cylinder
engines. Just as a mechanic connects a computer to the car and takes out
the engine readings and monitors its performance, the ECU-driven Cooper
engines can be connected to a computer and performance can be
monitored.
At Cooper, we made investments for this 4-5 years ago so
that we can comply with CPCB emission norms. So, as a company, one needs
to be always forward looking in terms of the technology and worldwide
trends. Of the Cooper Engines, 65 per cent of the engine components are
manufactured inhouse by Cooper Corporation such as the head, the block,
the flywheels and the bedplates.
Can you explain your expansion plans to meet growing demand?
We
have nine manufacturing units in Satara and employ around 2,000 people.
Cooper has invested Rs 400 crore till now and registered turnover of
around Rs 600 crore last fiscal. Besides adding more plants and more
lines for manufacturing, Cooper is also planning to install a new
aluminium foundry facility at an investment of Rs 100 crore. We are also
going in for investments of Rs 60 crore to enhance our research and
development.
What is the estimated size of the genset market in India today?
With
a genset power range of 10 KVA–200 KVA, the Indian market constitutes
about 100,000 units per year. Major volumes come in from smaller gensets
considering the preference of small consumers in the market. Leading
contributions for the segment come from the real estate, banking and
financial services, retail and hospitality. Now, the telecom industry is
also driving demand. We hope that demand will pick up with
manufacturing getting a boost and investments going up in the market
with the coming of the Modi government.
What share of your revenues come from the export market?
The
company is not only looking at catering to the domestic demand but has
also expanded its global footprint with orders from Saudi Arabia,
Ukraine, Panama and other countries. For gensets, the share of revenues
from exports was around 22 per cent last year this year and is expected
to be around 25 per cent soon; a major chunk of the exports have been
going to markets like South America, Africa and the Middle East.
Low-cost products are the order of the day. What is your take on this?
We
are looking to develop diesel engines where we can incorporate
aluminium components. These are now used only in the automotive segment.
We are planning to develop engines in aluminium, which will yield not
only great operating cost advantage, but also better fuel efficiency.
Aluminium plays an important part in modern day engines. Aluminium
components help reduce the overall weight which in turn enhances
power-to-weight ratio and increases fuel efficiency. Coopers are
increasing the aluminium content used in our engines to give our
products a distinct edge over the competition.
Nowadays, information
technology plays a major role in ignition and manoeuvring the fuel
consumption of engines. What is your take on this?
Cooper has
introduced remote monitoring modules developed by our R&D division.
We have incorporated this remote monitoring in our products which will
give our end users the facility to monitor each and everything from
performance to load on gensets. Hence, the gensets can be monitored
centrally. For this, we have also partnered with a few companies who
have developed this technology.
Umesh M Avvannavar, Sep 9, 2014, DHNS
The country’s largest selling footwear brand, Paragon, which has a
presence in the four southern states is looking to set up a plant in
Maharashtra in the next financial year, a top company official said.
The
plant’s thrust on polyurethane (PU) and ethylene vinyl acetate (EVA)
footwear manufacturing is estimated to entail an investment of Rs 50
crore.
According to Paragon Director - Marketing Joseph
Zachariah, “The setting up of a new facility is in the planning stage
and we are likely to narrow down on a location in the Pune, Nashik or
Nagpur belts.”
While the company is yet to finalise the capacity, approximately 15,000-20,000 pairs a day can be manufactured at the plant.
“Maharashtra, being one of our largest markets, will
help us to save on freight and also decentralise by producing to the
specific taste of each state,” Zachariah said.
Exclusive sales outlets
“Besides
panning out into central India, the company is also looking at setting
up a network of exclusive sales outlets beginning with one in Bangalore
this financial year. Going forward, the company would look at adding one
such store in all the major cities of South India,” Paragon Group
Director Thomas Mani said.
The proposal will be of considerable
significance to Paragon as it seeks to get into new categories like kids
range and sports shoes with relatively higher unit value, Mani added.
Paragon’s total production capacity (inhouse) is 4.5 lakh pairs a day.
Apart
from inhouse production, the footwear company has also outsourced
production of footwear to Bangalore, Hyderabad, Kottayam, Kolkata and
other places.
Total sales are estimated at 12 crore pairs each
year. The company aims to achieve Rs 1,600 crore turnover when compared
to Rs 1,400 crore in the last financial year and is targeting volumes of
14 crore pairs.
The company has roped in Kannada actor Sudeep for endorsing the product in the southern market.
Umesh M Avvannavar and N V Vijayakumar, Bangalore, Sep 14, 2014, DHNS
Leveraging the edible oil market buoyancy in the country,
Hyderabad-based refined oil-seller Saraiwwalaa Agrr Refineries Ltd
(SARL) is exploring new opportunities in high growth categories in the
edible oil segment like rice bran and mustard oil as well as the branded
food segment by launching atta, rice and foodgrain.
Talking
to Deccan Herald, SARL Director Anjani Kumar Gupta said the company
has established a footing in Telangana and Andhra Pradesh, besides
Karnataka and Maharashtra. “Once we stabilised in these states along
with Chhattishgarh and Madhya Pradesh, we can solidify our presence
nationally. Our international entry will be focussed on the S A Global
Trading, a 100 per cent subsidiary set up to market rice in Singapore,
Indonesia and other South East Asian countries,” he said.
Gupta
said the group also has a strategic marketing tie-up in Dubai through
New India Food Stuff for rice exports to the Middle East nations. “Going
forward, we will also explore opportunities in South Africa for rice
products and thus expand our global footprint,” he said.
SARL, led by its flagship brand Naturralle and 72
variants under different brands, is targeting a turnover of Rs 3,000
crore over the next three years.
“The Naturralle Refined
Sunflower Oil, the best quality and value for money product from the
company, is rich in Omega 6 and Vitamins A, D and E. We have registered
an annual turnover of Rs 2,000 crore for fiscal 2014,” Gupta said.
The
consumption of edible oil in the country was at 18.1 million tonnes for
the fiscal 2014 and is expected to increase to 23 million tonnes by
2019-20 growing at 4 per cent per annum.
Oil consumption
“The
current sunflower oil market in India is over Rs 180 billion. There is a
huge growing demand for sunflower oil in India as consumers are getting
more health conscious and alert about their health. Sunflower oil
contributes 11 per cent of the total edible oil consumption in the
country and is steadily growing at a rate of 10 per cent per annum.
When
asked about the challenges of the industry, he said that besides
challenges like high operating costs and less capacity utilisation,
edible oil companies have faced the heat of procurement cost of oil and
economic pitfalls.
The company expects revenue projections for
2014-15 at Rs 2,150 crore. Currently, the breakup of sales revenue for
branded, institutional and value-added fats and bulk/loose oil are
40:20:40 respectively.
SARL is a Rs 2,000 crore company with
asset base of Rs 250 crore. SARL has already invested Rs 50 crore in the
last five years towards brand building activity.
On further
expansion plans, Gupta said SARL is open to looking at forging strategic
partnerships or buyouts to increase its presence across the country.
Bosch Power Tools, the leader in the power tools segment,
which launched ‘DIY Square’ (Do It Yourself) in 2013 - the first of its
kind touch-feel-try centre in Bangalore is attracting many visitors.
Equipped
with a wide range of tools in the Home, Hobby and Garden category, the
center, apart from offering consumers hands-on experience of working
with power tools for basic home needs, also allows them to discover a
world of hobbies that can be pursued with these tools.
In an
interaction with Deccan Herald, Bosch Power Tools India Vice-President
Vijay Pandey, shares that having a great presence in the western
countries, the concept of DIY is fast penetrating into the Indian market
through DIY Square in Bangalore.
How many types of products you have? Please elaborate their features?
In
the B2B segment, we have tools for Construction ,Wood Working, Metal
Working , Cordless, Pneumatic, High Frequency, Automation technology,
High Pressure Washers, Measuring devices, Accessories for all Tools
& Fischer Fixing System. Bosch Power Tools has more than 350 tools
including cordless screw drivers, drill machines, impact wrenches,
rotary hammers, surveying equipment and Laser range finders are
available for the Indian market addressing the needs of diverse
industrial sectors like automotive, construction, manufacturing,
engineering applications and home interiors.
Under the Do-It-Yourself
(DIY) range we have products for the Home, Hobby and Garden which
include Lawn & Garden Tools, Home & Car Washers, Drill kits and
Hobby tools under the brand name DREMEL.
Any new launches in the pipeline?
Every
year, Bosch Power Tools launches more than 100 new tools in the
professional segment. The surge in popularity and demand for cordless
tools in particular has encouraged Bosch to drive the growth of the
segment within the power tool business.
We have launched the first
entry level product from the cordless tool range this year - a
professional driver/drill - GSR 1080 2 LI Professional across India.
The
tool is slated to be the answer to common challenges of battery life
and cost, while embodying a compact design, enabling high performance
and ensuring high level of user safety. It has been conceptualised to
simplify the process of drilling and can be deployed anywhere, anytime,
without having to worry about electric supply and limited reach among
other things.
In the DIY segment, our endeavour is to launch more
products for the home, hobby and garden segments. Newly launched
products in this segment are the smart measuring device for home ( PLR
15) and the innovative all-in-one screwdriver GSR BitDrive.
Which segment do you cater to?
In the B2B segment we mainly cater to the construction, metal, wood working industries and artisans/tradesman.
In the DIY segment, Bosch Power Tools has created three categories to simplify the concept — Home, Hobby and Garden.
These
categories resonate with discerning home owners who are passionate
about customising their homes, indulge in a hobby or simply do up their
own garden. The concept of DIY is fast penetrating the Indian market
through better availability of products via online channels like
Flipkart, Amazon etc ,exclusive Bosch franchisee stores like DIY square
and Bosch brand stores across the country. How many authorised service centres in India? Expansion plans?
We have more than 200 services centres across the country.
Changing
consumer behaviours and the movement towards adopting Do-It-Yourself
(DIY) as part of our lifestyle, was the cue to launch Bosch's Home,
Hobby, Garden range in India. There is huge potential to spearhead this
movement, and building this category through awareness and engagement is
the very first step. Going ahead, there will be a huge thrust on
building this business, along with our professional range of products.
How much investments made till today?
Apart
from more than 23 Sales and Marketing offices across the country, Bosch
Power Tools has invested in manufacturing plant in Adugodi, Bangalore
which makes tools that caters to about 35 per cent of the Indian
requirement. Bosch Power tool in 2011 invested in a state of the art
training center in Bangalore which is one the largest power tool
training facilities in the world.
Can you elaborate your marketing strategy?
To
reach out to our target audience, Bosch Power Tools takes part in more
than 50 large and medium size trade fairs and exhibitions across the
country like India wood, Acetech, Acme, IITF etc. For the first time, a
unique concept event called ‘Construction Monster’ was held in New
Delhi, Chennai and Mumbai. The event showcased the complete range of
construction tools and solutions for large- and medium-construction
companies.
India’s first Do-It-Yourself store, aptly named ‘DIY Square’ was opened in Bangalore in 2013.
The
store showcases latest offerings for the home, hobby and garden segment
with opportunity for live DIY experience in a fun way. In the first
year of inception, more than 11000 DIY enthusiast visited the store of
which 3500 were women.
The new Home and Car Washer range was
unveiled by Bollywood actor Prachi Desai , who is the face of the brand.
The division had a spectacular success at the India International Trade
Fair (IITF) exhibition, Delhi having attracted more than 2 lakh
visitors. Explain about DIY square?
Having a
great presence in the western countries, the concept of DIY is fast
penetrating into the Indian market through DIY Square in Bangalore. The
DIY Square is a first of its kind touch and feel experience store, where
customers often visit to create interesting objects and art pieces of
their choice. Customers get an opportunity to create different objects
for their homes while exploring DIY as a hobby. They are assisted by
experts who help them experience tools that bring to life objects of
creativity.
Further, in the DIY segment, Bosch Power Tools has
created three categories to simplify the concept - Home, Hobby and
Garden. Through these categories, the DIY concept finds resonance with
discerning home owners who are passionate to customize their homes,
indulge in a hobby or simply do up their own garden. In addition, the
DIY Square also conducts regular workshops during weekends, where
consumers are introduced to the various uses of the tools and are taught
how to create exciting new objects. Any tie-up with BSH stores (Bosch brand Store)?
Bosch
Brand stores are the first cross-selling platform by Bosch. They
display & sell the Bosch range of Home Appliances, Security Systems,
Solar Systems and Power Tools products.
The Bosch Brand stores serve as a one-stop shop for the entire Bosch range of products for the home.
Bosch
Power Tools has a range of home products like Multipurpose Tool Kits
(GSB), Cordless Screwdriver (IXO), Home and Car Washers, Engraver, Glue
Gun, Lawn Mower, Shrub Cutter and Grass Trimmer. Through this platform,
Bosch is able to give the discerning customer more choices and
opportunity to shop all that he requires for his home.
What are the challenges you are facing?
Our
customers have been receptive to our products and especially the new
launches that are in line with market demand. We are scaling up
operations and have more opportunities than challenges with the
introduction of the Homes, Hobby and Garden range. We are expanding our
presence and product range to online and offline channels like Croma.
Are TV ads eating into your market share? The price difference is very huge compared to TV ads and yours. Please comment.
We do not place TV ads as of now as our products need ease of purchase and usage knowledge as first priority.
What is your market share?
We command more than one-third share in the professional segment and are the clear leaders in this segment.
What is the size of this industry?
With
the tradesman segment expanding and new users moving from hand tools to
power tools, the potential is enormous. Also, there is unestimated yet
equally large potential for tools which middle class consumers have
started buying for their home improvement needs.
The convergence of engineering and IT
technologies in the manufacturing sector heralds a paradigm shift in the
production process.
Auto ancillary units in India have
been hard hit by the global recession and have been relying on strong
technological acumen to weather the cross-winds of flagging demand and
occasional blips on the radar. JBM Auto Limited, a flagship company of
the $1.2-billion Delhi-headquartered automotive component manufacturer
JBM Group, is solidifying its position with its inhouse product
capabilities. In an interaction with Deccan Herald’s Umesh M Avvannavar
and N V Vijayakumar, JBM Group Executive Director Nishant Arya expounds
on the scale of competition in the auto component manufacturing sector
where technology is the clear differentiator and the group’s vision to
become an end-to-end solution provider for the industry.
JBM Group has been a pioneer in steel metal manufacturing. How did you venture into auto component manufacturing?
JBM
Group began its journey of excellence in 1983. The organisation
commenced operations as a manufacturer of LPG cylinders for the
Delhi-NCR region of India. Moving from strength to strength, assisted
with experience and knowledge, JBM Group entered the automotive industry
in 1985. In 1986, the group signed a joint venture with Maruti Suzuki
India Ltd to manufacture sheet metal components and assemblies.In 1986,
we decided to expand the business in the automotive sector by staying
abreast of market trends and the latest technologies. JBM Group soon
associated with other OEMs and gradually emerged as a leading supplier
to almost all automotive OEMs in the country. The group today is a
diversified conglomerate with a presence in the automotive, engineering
and design services and renewables.
Could you share additional information on the group’s manufacturing facilities, products and key customers?
The
JBM Group has 35 manufacturing plants and four engineering and design
centres across 18 locations globally. In India, we have plants across 14
locations – Indore, Pune, Chennai, Nashik, Bangalore (Hosur),
Faridabad, Gurgaon, Haridwar, Pantnagar, Nalagarh, Greater Noida,
Sanand, Pathredi and Kosi. Some of the manufacturing plants are located
in supplier parks to minimise transportation costs and time. The
products are customised inhouse as per customer requirements. Our ‘art
to part’ philosophy starts with the drawing board design of the product
and ends with the product being manufactured under guidelines given by
the customer. In fact, this is our core USP to suit the dynamic needs of
customers. Among the products we manufacture are air tanks,
body-in-white parts, corner modules, cross car beams, cross members,
chassis and suspension systems, door impact beams, exhaust systems, fuel
tanks, fuel fillers, tubes and tubular parts and wheel assemblies. The
group also manufactures CNG/LPG cylinders, railway coaches and
locomotive accessories.
Today, we supply to almost all OEMs in
the domestic and global markets in the 4-wheeler, 2-wheeler, 3-wheeler,
commercial vehicle and farm and construction equipment domains.
JBM
Group unveiled its long awaited low-floor intra-city bus at the Auto
Expo earlier this year. Why did the group decide on the intra-city
segment and not the inter-city segment?
Our latest foray into bus
manufacturing focuses on creating a niche segment in the intra-city
public transportation space and aims at providing luxury, comfort and
safety. We have extensively worked towards understanding the
requirements of this product category and studied similar products being
used globally. We feel that a big opportunity lies in this segment and
can be catered to with the introduction of the right kind of product.
We
are very bullish about various urbanisation schemes where the
government is expected to spend over $20 billion over the next 7 years
on transport modernisation. Getting into full-fledged vehicle
manufacturing is a natural progression for us as JBM Group has already
been doing contract manufacturing over the years for various renowned
OEMs in the country.
As you have entered the intra-city bus
segment with CITYLIFE, when do you foresee commissioning of the
facility? What is your current order book?
The work at the
Faridabad and Kosi Kalan (UP) facilities are in full swing and they will
be operational by October 2014. At peak capacity, these plants will
manufacture 2,000 buses annually.
Currently, we are in
discussions with various state agencies as well as private bodies. Once
these discussions reach the final stages, we shall make the
announcements on the order status.
JBM Auto Ltd has selected Breda as a technology partner. How did JBM Group narrow down on them?
The
renowned European bus manufacturer BredamenariniBus (BMB) has supported
us with their domain expertise and experience in the bus manufacturing
business. BMB boasts of over four decades of experience in this domain.
Their legacy in this business was a key factor in our association with
them for this project.
What is your capex for the current fiscal? How much of it has been achieved?
We
have already spent Rs 100 crore each to set up plants in Bangalore and
Indore. The Bangalore plant will cater to Honda Motorcycles and will
come under the group-owned Neel Metal products Ltd. The Indore plant
will cater to Volvo Eicher and M&M and will come under JBM Auto Ltd.
The group has commissioned two plants for the bus project, one in
Faridabad for the monocoque structure and one in Kosi for assembling
buses. The company has started expansion for the Faridabad and Gurgaon
facilities for the bus project. The expansion is part of the earlier
announced investment of up to Rs 500 crore in the bus business. Our
further expansion will depend upon the opportunities the company get in
future.
Matthew Thomas and Umesh M Avvannavar, Oct 15, 2014, DHNS
Narrowing price In terms of price, diesel cars are clearly losing a battle which they have dominated for long
The point of focus for most potential automobile buyers,
until recently, has been fuel efficiency; and that has translated into a
large percentage of user in the country preferring diesel over petrol
variants.
The perfect blend of mileage and a relatively
high price difference, driven by disparities in excise duty and sales
tax, a diesel variant offered as compared to petrol, made it the perfect
choice for most drivers. However, this perfect blend has now been
disrupted with steady narrowing in the price difference between the two
fuels.
The high cost of acquisition which used to be accompanied
with low cost now seems more of an unnecessary cost causing most users
and potential buyers to rethink their decision to go with the seemingly
cheaper fuel.
The price of petrol in Bangalore ( as on October 1)
stood at Rs 74. 42 per litre, as compared to diesel to diesel at Rs 64.
07 per litre. The price differential which now stands at Rs 10 is much
higher as against December last year, where diesel cost Rs 58.30 per
litre and petrol was at about Rs 78.38 per litre.
This narrowing price difference has also been observed
by rating agency Crisil, who in their recent report said that buying a
diesel car makes less economic sense now as the time taken to recover
the premium paid over a petrol variant has nearly doubled.
In
its report Crisil justifies its statement saying, “In fiscal 2012, when
the fuel price differential was at its widest, it took around 2.5 years
to recover the premium paid to buy a diesel car, considering the savings
made on fuel as well as resale price.”
Further adding, “Now, it will
take nearly six years to recoup the money. This takes into account
average car usage in India, which is 10,000 km annually. If one also
factors in the time value of money, recovering the price premium will
take even longer. This clearly indicates that purchasing a diesel car
today does not make economic sense for private users, unless justified
by usage. For commercial users, however, diesel cars still make economic
sense given that usage will be much higher.”
Few exceptions
In
terms of price, diesel is now losing a battle it has dominated for a
long period of time. Car dealers, barring a few exceptions, say that
users have already begun turning to petrol variants with the general
belief that the narrowing price difference would only increase further.
On
recent trends in choice, Mandovi Motors, Vice-President, Marketing and
Sales, Yeshwant Rai K in an e-mail interaction said, “Recent sales
trends have been endorsing Crisil’s statement on diesel cars. A diesel
car will cost around Rs 1.2 lakh more than petrol variant and the narrow
price difference between petrol and diesel per litre, will certainly
not make sense for an average user of around 40 km a day.”
Further
clarifying the changing trend, Rai said that petrol car to diesel car
sales ratio in Mandovi Motors was 53:47 in fiscal 2012-2013, 65:35 in
fiscal 2013-2014 and it is 68:32 in the first half of 2014-2015.
Rai
added, “In the case of first time buyers there are two categories,
people who either graduate from two wheelers or teens who just start
earning handsome salary.
“Two wheeler upgraders will certainly go to
a petrol car as the price of diesel car is almost Rs 1.2 lakh more,
which they may not be able to afford, whereas a small percentage of
youngsters who purchase cars for the first time may go for diesel cars
because of its turbo power,” he said.
Partially supporting the
sentiment that petrol would be more opted for in the future but
maintaining that diesel still has a place in the market, Founder CEO
Cartrade.com Vinay Sanghi, said, “Just a year back, the diesel variants
of hatchbacks and compact sedans were outselling their petrol
counterparts but now the trend has reversed because of the lower
difference between the pricing of both fuels. While customers in this
segment are showing more interest in petrol, premium models are still
selling strong in diesel variants.”
On the segment of customers
which prefer diesel variants, Sanghi said, “We have observed that
consumers in their early thirties prefer a diesel car over petrol. It
also depends on their occupation/ profession, geographic location and
daily commute distance. For consumers who are in a field related job
which requires traveling longer distances, a diesel car proves to be a
better option because of its lower running cost.”
The founder of
the online auto classifieds also observed that budget is more often than
not a major deciding factor for potential buyers, “Budget plays the
most important role behind choosing a particular variant. A vast number
of consumers prefer to buy the top end version over a base version,
provided the difference between the lower most and fully loaded variant
is not much. In a top end variant, features offered are more and thus
consumers look for its long term advantage instead of saving more on a
lower version. The best example for understanding this is the Ford
Ecosport Titanium variant, which commands a longer waiting period
compared to the basic model.”
Sanghi is also of the opinion that
mileage may just give diesel an advantage. “Diesel cars have a higher
servicing cost and so it is advised only to customers who travel more as
its running cost is lesser. Fuel efficiency of diesel cars is more
because of its potential to produce greater torque at lower engine
speeds. Thus effectively, the cost incurred per km is lesser than petrol
engines. Even the aspirational class of owners buying premium cars pays
great attention to the cost of ownership. The same can be vindicated by
the fact that Audi’s flagship Q7 SUV sells more in 3.0TDI version than
in 4.2TDI.”
Buyers choice
On the mileage
advantage diesel cars are known to provide, Rai said, “Car mileage and
price per litre will go in tandem. The narrowing price difference
scenario now means that the higher mileage of a diesel car will not have
much effect on the buyers choice.”
Nandi Toyota Sales Manager
Deepak Nair, however, said in an e-mail interaction that despite the
narrowed down price difference the dealership has not seen a change in
trend towards petrol. On the Crisil report Nair said, “ Although the
report may be true to a certain extent, the resale value of diesel is
still better than petrol giving it a slight advantage. Even if the
prices reaches the same psychologically it will take time to change the
mind set of Indian customers”
Substantiating his opinion that
diesel cars still might be preferred Nair said, “Out of the total
retails in the dealership, 15 per cent were petrol and 85 per cent were
diesel (both 2013 and 2014 till date).”
On strategies to push
sales of diesel cars, Trident Automobiles, Director, Samir Choudhry in
an e-mail interaction said, “There appears little if any choice besides
reducing the price of diesel cars to make them a more attractive value
proposition or impressing upon the government to once again bring down
diesel prices (which is highly unlikely), thereby reducing the running
cost do diesel cars.”
Choudhry who is sure that petrol variants
will have the advantage in the future, said, “Petrol engines are cheaper
to make and maintain , so unless the gap between the two fuels once
again increases significantly we would see a shift in the direction of
petrol vehicles.”
“First time buyers will, without a doubt, prefer petrol variants as well,” he added.
Similarly,
Prerana Motors, Head of Sales, Ranganath Nagaraj also feels that petrol
is already being favoured by most users and potential buyers.
“Diesel
deregulation, which is round the corner is likely to further boost
sales of petrol editions, as the higher initial cost of a diesel car is
no longer justified by lower fuel cost,” he said.
Although the
common concensus, with a few exceptions, favours petrol, all the dealers
that were interviewed maintained that high usage in terms of distance
travelled makes purchasing diesel cars viable irrespective of its rising
cost.
Customers using cars for longer distances should still
prefer the diesel variant as the factor of mileage plays more of a role,
however for city drives, the common opinion is that petrol should come
out on top as the more opted vehicle in the days to come.
Umesh M Avvannavar, Oct 10, 2014, DHNS: New Delhi:
India has the capacity to scale up its mobile broadband
connectivity to 600 million subscribers by 2020, according to a white
paper released on Thursday by networking solutions leader Ericsson.
Of
these subscribers, one in five would have accessed to 4G networks, and
this in turn, would boost the share of data in telecom revenue threefold
to between 35-40 per cent.
The white paper projects that
government initiatives like the National Optical Fibre Network will
drive user demand for Internet access to between 600 and 850 MB by 2020.
Ericsson India Head of Strategy and Marketing Ajay
Gupta said, “Mobile broadband will be the platform on which the
government’s digital India vision can be delivered. However, operators
in India are working with far less spectrum than mobile providers in
other geographies.”
For this reason, spectrum is likely to be
key factor driving mobile broadband growth in India and helping achieve
the government’s target of 600 million broadband connections by 2020, he
added.
Gupta suggested that the benefits of mobility and
broadband will impact India in application areas like connected cars,
remote surgery, smart metering, public safety, goods tracking and
e-learning.
Ericsson partners Airtel
In a bid to optimise
indoor coverage Network Solutions major Ericsson on Thursday launched
two new products the Radio Dot System and the RBS6402 Picocell.Both
products enable enterprises and operators of large public spaces like
airports and malls to deliver high-speed data communication at up to 300
MB per second.
Ericsson Head of Radio Strategy Christian Hedelin
stated that the company has developed next generation access
technologies like multi-standard, multi-band and multi-layer solutions
for network service providers. This will help them “future-proof” their
systems against obsolescence when they are required to upgrade from 3G
to 4G.
Swedish communications technology company Ericsson companysaid it
has signed a deal to partner Bharti Airtel to offer 4G network
technology, which is in its infancy in India. "Airtel has selected
Ericsson to be its partner in offering LTE (Long-Term Evolution, also
marketed as 4G LTE) in India," Chris Houghton, head of Ericsson Region
India, said in New Delhi at a company-organised event to launch the
product solution.
Umesh M Avvannavar, Bangalore, Oct 28, 2014, DHNS:
Fiat, the world’s seventh largest automobile manufacturer, is
embarking on network expansion in India, where it wants to add 25
dealers by the end of this fiscal and wants to reach remote areas across
the country, a top company official said on Monday.
According
to Fiat Chrysler Automobiles, India Operations President and Managing
Director Nagesh Basavanhalli, “The Italian automobile major currently
has 125 dealers in 98 cities across 24 states and plans to add 25 more
by the end of this fiscal. We are reaching out to more customers in
smaller towns; today, the competition is such that we have to reach to
out to more customers which is a must.”
Taking the cue from its
success in Maharashtra by reaching to out more customers in smaller
towns like Nashik, Sangli, Satara and Aurangabad, the company is keen to
implement a hub-and-spoke model across India.
“Fiat India is
aggressively focusing on increasing its footprint in India and trying to
reduce the gap between the customer and the company,” Basavanhalli
said.
Rugged vehicle
The company
launched rugged contemporary urban vehicle (CUV) Avventura with
pricepoints from Rs 6.08 lakh to Rs 8. 32 lakh (ex-showroom Bangalore).
The
sub-4 metre vehicle will be available in both petrol and diesel
versions. The petrol variants are powered by a 1.4 litre engine and are
priced between Rs 6.08 lakh and Rs 7.17 lakh while the diesel variants
are priced at between Rs 7.01 lakh and Rs 8.32 lakh (all prices
ex-showroom Bangalore).
“The Avventura showcases Fiat’s
commitment to India to produce cars designed for India and manufactured
for India,” Basavanhalli said.
The vehicle will be manufactured
at the company’s Ranjangaon plant in Maharashtra and initially sold in
the domestic market only.
On the response to the vehicle’s
launch so far, Basavanhalli said, “We have already received around
50,000 enquires and 500 pre-launch bookings for the Avventura.”
The
company, a wholly owned subsidiary of Fiat Chrysler Automobiles, has
been adding new models in its product portfolio this year to rev-up its
sales.
Later this year, it plans to launch a luxury hatchback Abarth 500.
It has been two months since R S Kalsi took to over as
Executive Director (Marketing & Sales) at India’s largest car
manufacturer, Maruti Suzuki India (MSI), following the sudden departure
of Mayank Pareek from the post of marketing head.
A
mechanical engineer by qualification, Kalsi has been an old hand at
Maruti, being on board since 1984 (roughly a year after the legendary
Maruti 800 was launched), in areas as varied as vendor development,
supply chain, parts inspection and engineering. In his current role, he
will be in charge of the crucial international marketing division for
the company.
R S Kalsi reveals the agenda behind his new role,
and the way forward in an interview with Deccan Herald’s Hrithik Kiran
Bagade and Umesh M Avvannavar. Excerpts:You
took over as MSI’s marketing and sales head recently, after Mayank
Pareek left the company. What agenda have you set for yourself in the
new role?
It is teamwork and continuity which is the strength of
our organisation. We have a robust bandwidth of management teams in all
business areas.
On the agenda front, Maruti Suzuki is one of India’s most loved brands.
Nearly 14 million Maruti Suzuki cars ply on Indian roads.
There is a huge network of partners and business associates with us… We are performing well, better than the industry.
The future is exciting, with our medium-term goal of 2 million annual sales, new products and new segments.
My
agenda is to lead the Marketing & Sales team towards achieving the
company’s goals, with a strong focus on creating customer delight, both
in the areas of products and the aftersales service.
To achieve this, we would renew focus on our sales network to support 2 million sales.
The focus would include developing network and increasing reach for customer opportunities.
We would also aspire for high-quality customer experience, while urging the sales team to try innovative sales formats.
While we focus on the customer, we would also ensure profitability and growth of our dealer partners.
We
will look at deeper customer engagement opportunities to understand and
anticipate their needs, developing capabilities of my team to deliver
on these fronts.
I feel that my experience in the field, as
Commercial Business Head and National Sales Head, will be of value here.
All in all, I think a deep sense of responsibility is what I feel.
How
has 2014 been for Maruti Suzuki? The second half has been eventful with
the launch of Ciaz, apart from the upgraded models of Swift and Alto
K10.
Can you share some thoughts on customer demand?
Yes,
it has been an interesting year so far. We have launched three models
with superior fuel efficiency — Ciaz, new Swift and new Alto K-10. All
of them return best-in-class fuel efficiency.
In terms of sales,
H1 has been good. In the year till date (April-October 2014), MSIL could
grow 12 per cent by focusing on all models, exchange schemes, alternate
fuel vehicles (CNG) and sales promotions.
Importantly, low base in the previous year and early start of the festive season, this year, also contributed to the sales.
Industry, however, grew only by 2.3 per cent (competition sales are down 4.6 per cent).
However,
going forward, in H2, the base will increase, and maintaining growth at
a similar rate would be a challenge. For the full year fiscal 2015, we
continue with our earlier estimate of double-digit growth. The challenge
is before the industry and the customer continues to be cautious.
Why
do you think Ciaz will succeed? What kind of bookings have you seen so
far? What is your sales target for the car and how has consumer uptake
fared?
Ciaz is already a winner in its segment. We have over 21,000 bookings in place.
Ciaz has been designed keeping in mind the aspirations of a midsize premium sedan customer.
A complete package, the Ciaz offers European styling, premium rich interiors and a host of upmarket features.
Ciaz
Diesel is India’s most fuel-efficient car. The designers have paid
special attention to ensure space, comfort and convenience for rear seat
occupants as well.
With Ciaz, we are confident of gaining
leadership position in the A3(+) segment, retaining the dominance in the
A3(–) with our bestseller, Dzire.
Together, Ciaz and DZire will help us strengthen our overall presence in the A3 segment.
It is seen as a natural upgrade for customers looking for a large sedan in the Maruti Suzuki portfolio.
What is Maruti’s rural growth strategy? How are urban markets faring as compared to rural growth?
In fiscal 2013-14, over 31 per cent contribution to national sales came from rural areas.
Rural sales grew 39 per cent over the previous year and penetration into rural regions stood at 35 per cent.
Urban markets are also a big chunk of our sales. Top 10 cities have grown by 10 per cent during H1.
We think new model launches, focus on exchange sales and alternate fuels will help maintain momentum, going forward.
How do you plan to market the new Alto K10, especially, as there is not much price difference between the car and Celerio?
For an entry segment buyer, the price difference of Rs 40,000 is quite steep. Any cannibalisation appears quite unlikely.
Both Celerio and Alto K-10 are distinct products, priced apart and targeted at two different sets of customers.
With the market getting competitive with newer products, how do you plan to sustain your market share (around 45 per cent)?
Our focus will be on expanding product portfolio, bringing in new technologies and expanding our network.
Early this year, Suzuki outlined a strategy to bring 14 new models over the next 4-5 years.
There
is a market of 29 per cent for compact SUVs which, so far, Maruti has
not entered. So, we will be entering that segment next year.
Our
R&D centre in Rohtak (Haryana) will support and supplement us in
terms of faster rollout of products because our overall testing cycle
will reduce.
Hrithik Kiran Bagade and Umesh M Avvannavar, Nov 19, 2014, DHNS :A staid, dependable SX4 and stylish, pricy Kizashi made no waves; now Ciaz will look to score.
Who
says luxury comes with a hefty price tag? At least, that’s not
something that the country’s largest carmaker, Maruti Suzuki India
(MSI), must have thought when they delivered the Ciaz, a perfect blend
of comfort, features, space and performance, and many more attributes.
The
much-awaited mid-size premium sedan, the Ciaz, hit the roads few weeks
ago, after months of speculation and anticipation. And suddenly, the
wait seems to have borne fruit and MSI looks to have developed a
best-in-class product. The Ciaz might just prove to become the icing on
the cake for Maruti Suzuki, especially after the downturn of its other
premium sedans, Kizashi and SX4, in the last few years.
Maruti is betting big on Ciaz, and they have succeeded
in giving a best product in this segment, as we find out over the
lengthy drive around the city of Bengaluru, across the vast stretch of
the New Airport Road and then, upon the meandering hairpins of Nandi
Hills.
Just to begin with, as we introduce the car, the first
thing that catches our fancy is the name of the car: Maruti Suzuki Ciaz,
which resonates style and class.
Let’s get started: What does
CIAZ exactly mean? The car’s name is simply an acronym, and stands for
Comfort-Intelligence-Attitude-Zeal, which are nothing but reflections of
all those little and great things about the Ciaz that will impress you,
as they do us. Each of these attributes show and turn out to be real as
we find out when we drive the Ciaz to Nandi Hills.
At first glance
The
Ciaz is composed of great looks, and though sleek and delicate in
appearance, it packs in a very robust and regal stance. The car is
longer than its ‘supposed’ predecessor, the SX4, at 4,490 mm.
The
exterior styling is nothing short of magnificent. Taking a cue from
European styling, the Ciaz looks brilliant and the straight lines impart
a classy European tinge to the sedan.
The slanting projector
headlamps seem inspired by any of the major European luxury car brands,
and is a standard feature across all variants. The car that we get is
the top-end ZDI diesel variant, which is feature-packed to the brim. A
few elegant elements on the car’s exterior include, a strong shoulder
line, running all along the length, which lends dynamism.
With
the signature Suzuki logo, ‘S’, offers an elegant look on the front
chrome grill and on the sedan’s tail. Ornamental door beltline, chic
chrome door handles, front fog lamps, integrated turn indicators on the
electrically foldable ORVMs (Outside Rear View Mirrors), split tail
lamps and chrome garnished trunk lid make the host of other features.
The
beauty of the car is enhanced by the longest wheel base of 2,650 mm,
making it stand out in the crowd. The boot size can carry even your
neighbour’s luggage with 510 litres. A visual characteristic of the car,
which just cannot be ignored, is that the shape of the tail lamps of
the Ciaz, most surprisingly, resemble the shape of the tail lamps of the
new Honda City. More room anyone?
We
sit in the car and feel pampered with the plush premium interiors. The
beige leather upholstery on the seats, with the cup-holder integrated
armrest in the centre of the rear seat, apart from the front centre
armrest, speak of the thoughtfulness that the makers have placed while
designing the Ciaz.
Then, there is the uber-cool snazzy centre
instrument panel, with the aesthetically designed knobs and switches
that attract our attention. The use of a dual-tone colour theme, of
beige and black, with dips and garnishes of wood and chrome add further
richness to the nicely designed car. The concealed storage space, which
also has the USB and AUX sockets, is a brilliant addition.
Apart
from the standard advanced premium features like camera-assisted
reverse parking, smart key, push-start, rear AC vents and so on, the
most interesting feature, that to an intelligently designed one, is the
personal reading lamps, which is a new feather in the cap of the great
car.
Besides, before saying anything else, yet another striking
and impressive aspect that is a constant while talking of the car’s
interiors is the large amount of space that can be found everywhere. If
you wish to be driven around, make sure that you take a rear seat. Even a
tall gentleman can sit cross-legged comfortably.
The cabin
provides enhanced leg room, head room and shoulder room for all
occupants. Seated in the rear seat, the fact of more space always being
available puts us at peace and we conveniently stretch our legs for the
journey.
Engine on!
Now, in the driver’s
seat! We switch the engine on using the push-button start, and the Ciaz
comes to life, but without irritable cabin noise. For a diesel car, the
Ciaz that we are driving doesn’t seem to have the usual roughness so
common on other diesel cars.
Smooth drive
The
smooth manual transmission allows for quick gear-shifting, and we are
away. First gear, and the car has already picked up, touching a speed of
around 25-30 kmph, which tells us of the car’s impressive
acceleration.
In very less time, the Ciaz, with us in the
driver’s and co-driver’s seats, is gathering road quickly, as it passes
through the city of Bengaluru, onward towards New Airport Road. The
traffic congestion, which is a daily phenomenon in the City, is no match
for the Ciaz, whose turn radius of 5.4 metres can comfortably deal with
choc-o-block snags.
The car is powered with a turbo 1,248 cc —
DDiS 200 diesel powertrain, with manual transmission, dishing out
considerable power of 90 bhp. Once the car has reached the New Airport
Road, we put it to the speed test. Gears are shifted and the Ciaz is
cruising at over 110 kmph.
For a 1.3-litre engine, the Ciaz has
an impressive top speed of over 140-150 kmph, and can reach 0-100 kmph
in less than 12 seconds.
The day is beautiful and perfect for a drive to the welcoming Nandi Hills.
The
Ciaz makes short work of the hilly curves and rocky promontories on
this picturesque route. The car performs with agility and finesse as it
ascends the road to the hillock’s peak, with the occupants not even
feeling a squeak.
Big wheel base
A turn radius of the car, coupled with the wide wheel base and strong breaking, reiterates the car’s safe driving feel.
To
add some more goodies to an already well-designed machine, the Ciaz
incorporates a host of safety features such as two SRS airbags,
anti-lock braking system (with electronic break-force distribution),
anti-theft security system and rear defogger, among others. The
drive is very long and we never feel tired, and with turbo kick, the
vehicle roars like a bullet and flies. As per the ARAI, the vehicle
delivers a mileage of 26.21 kmpl.
The Ciaz comes in two variants
of petrol and diesel (Note that only the petrol variant has an
automatic transmission), across seven colours.
You can pick up a Ciaz at prices ranging from Rs 7,35,488-Rs 10,21,487 (ex-showroom Bengaluru).
All-in-all,
one can say that, finally, the company has come out with the best
design with much effort put in research and development.
The
brain behind the design for the Ciaz is chief designer Hisanori
Matsushima and his team, who have done a great job and succeeded in
placing the Ciaz a big step forward, and putting Maruti Suzuki India
back on top of the competition.
Umesh M Avvannavar and Hrithik Kiran Bagade, Bengaluru, Dec 5, 2014, DHNS:Indian commercial auto major Force Motors is
mulling a foray into the area of fire and rescue, with plans to launch
firefighting vehicles by the first quarter of next year.
Talking
to Deccan Herald at the international aluminium die-casting conference,
Alucast 2014, here on Thursday, Force Motors Managing Director Prasan A
Firodia said, “Today, in India, firefighting is a challenge, due to the
kind of roads and traffic conditions that prevail here. Usually, fire
vehicles are large, while city roads are small, making it difficult for
fire teams to navigate and reach destinations sooner.”
Force
Motors will launch three variants in its upcoming fire vehicle range — a
small, medium and large vehicles priced in the range of Rs 20 lakh to
Rs 2 crore, depending on the size and equipment (pneumatic cutters,
generators, compressors and building razers, among others).
“In cities, where the roads and narrow, small fire
vehicles are a logical solution to meander through the traffic and reach
zones faster. Even while looking at the scenario globally, when a fire
station receives a distress call, as the first point of rescue, a
smaller fire vehicle is dispatched, which can perform multiple tasks,
besides fighting fire alone,” he said.
In India, there is a
misconception that only large vehicles with water pump and hoses
constitute fire vehicles, and only such machines are capable at
firefighting missions. But this is rarely true, Firodia said, adding
that everywhere, the use of foam is preferred against water for
firefighting.
Talking about market for fire vehicles and
potential customers, Firodia said, “We have received orders for a few
hundred vehicles from 4-5 state governments,” without revealing further
details.
The government of India has already been looking for
quick action vehicles to fight fire and Force Motors is working towards
this need, he said, adding that the company plans to roll out the
vehicles at its facility in Pithampur in Madhya Pradesh.
Firodia
also announced that the company will come out with more traveller
category vehicles in the future, to cater to the demand for ambulances,
besides school buses.
Force Motors currently has two plants in India.
Its small commercial vehicles and tractors are rolled out from the
facility in Pune, while others such as SUVs, MUVs and other CVs are
produced at Pithampur in Madhya Pradesh.
N V Vijayakumar and Umesh M Avvannavar, Dec 08, 2014, DHNS:
The customer-centric banking business has been undergoing
various tribulations with PSU and private sector players vying hard to
capture their share of the pie. Since automation has taken root, with
e-banking and m-banking having become the order of the day, India’s apex
banking regulator, the Reserve Bank of India, has come up with rules to
keep tabs on the banking sector.
But have these boons
evolved into banes, the opposite of what they were intended to be?
Looking at the RBI stipulation on putting a cap and additional fees on
excessive use of ATMs (Automated Teller Machine), one does get such an
impression.
“Given the growth of cash access points and taking
into account associated costs of infrastructure to banks and the economy
more generally, the Reserve Bank of India has decided to revise the
existing directions relating to the use of automated teller machines
(ATMs) and charges on their use,” RBI stated in a circular issued in
August, this year.
Bank customers are feeling the heat across the
country following the recent RBI circular allowing banks to limit the
number of free ATM transactions to five — other bank transactions, three
in the largest six cities (New Delhi, Mumbai, Kolkata, Chennai,
Bengaluru and Hyderabad) and two elsewhere — a month.
Following
the directive, which came into effect on November 1, 2014, banks are
allowed to burden customers with additional charges of around Rs 25 on
excess ATM transactions after the stipulated five free transactions have
been completed.
ATMs are primarily used by bank account holders
for cash withdrawals. Besides, ATMs also provide services and facilities
like account information, cash deposit, regular bill payments, dollar
enquiry, donation payment, pin change, purchase of Reload Vouchers for
Mobiles, availing of SMS alerts for ATM card transactions, mini/short
statements and loan account enquiries. PSU banks primarily focus on
dispensing cash while private banks provide other ancillary facilities.
As per latest data from the RBI, at the end of June quarter, there were 1,66,894 ATMs in the country and with 44,929 machines.
In
India, one of the earliest ATMs to be introduced was in 1988 in
Bengaluru, informed Dinesh Chandra Hegde, a retired DGM of Vijaya Bank,
adding, “It was a very proud moment for us (Vijaya bank), as we were one
of the first banks to set up an ATM in the country, with help from
Citibank.”
In those days, many Indians, including RBI officials,
would arrive wide-eyed to have a look at the machine that ‘dished’ out
money, an emotional Hegde reminisced.
Since then, ATMs have come a
long way in transforming the way people bank. From an era when
customers went to the bank, waiting in long queues for their token
numbers to be called out for collecting cash, the dawn of ATMs meant
that banks went to the customers. The ATM, affectionately stood for
‘anytime money’.
All banks in India today boast of a network of
ATMs spread across the country. The existence of hard cash in a machine
invites a lot attention, especially from those who want to make easy
money (thieves, dacoits and robbers), which requires the ATM kiosks to
be guarded and its day-to-day operations closely monitored.
Almost
all banks have started ATM operations, with tasks like security,
maintenance and cash-filling being outsourced to solid players.
The tyranny of caps...
A
few banks have placed caps on ATM usage. The State Bank of India (SBI),
which reported losses of nearly Rs 400 crore by way of paying other
banks interbank ATM usage charges in 2013-14, was the first lender to
cap free ATM transactions at five.
The bank impose fees of Rs 20
on every subsequent transaction. Since November 1, the new norms are
effective at India’s largest lender SBI. However, the bank has allowed
more free ATM transactions to those who avoid visiting its branches, and
unlimited transactions for those with large balances.
The SBI,
which possesses the largest number of ATMs in India, started charging Rs
17 for all additional transactions via ATMs. The bank also charges
those who avail of the ATM facility without maintaining a minimum
balance.
The second and the third largest private sector players —
HDFC Bank and Axis Bank, respectively — have also followed suit and,
effective December 1, will charge Rs 20 on transactions exceeding five
every month.
While HDFC Bank will charge Rs 20 for cash
withdrawals and Rs 8.5 (excluding taxes) for balance enquiries or mini
statement, Axis Bank will also charge Rs 20 and taxes for carrying out
financial transactions and Rs 9.5 for non-financial ones.
At
third-party ATMs, HDFC Bank and Axis Bank will charge for more than
three transactions, down from the earlier five free transactions, the
banks said.
Syndicate Bank, which has 2,916 ATMs going by their
Q2 financial statement, allows three other-bank ATM transactions in six
metros in the country. “The reduction of free transactions from five to
three is not applicable in non-metro centres. It is also not applicable
to small accounts/no-frill accounts,” said the bank in a statement.
Even
though Syndicate Bank charges Rs 20 per additional transaction in other
bank ATMs, there are no restrictions on its customers who use the
bank’s ATMs.
An official from Canara Bank said that existing
customers of the banks are not penalised for additional transactions.
“We provide unlimited transactions for our existing customers. But other
bank ATM holders will have to pay Rs 20 in six metros for all
transactions via Canara Bank ATMs,” an official said.
Officials
also revealed that the bank encourages its customers to use Canara ATMs
more. “If it has not happened, we will have to share the revenues with
other banks for each transaction, which is a loss for the bank,” a
Canara Bank official said.
Alternative revenue streams
Banking
analysts say that growing NPAs and administrative costs have compelled
banks to go and find other streams of revenue. Some senior bank managers
said they are monitoring the transactions after the RBI guidelines and
have tweaked them in line with necessity.
A Bank of Baroda
official said, “As far as our bank is concerned, we do not charge
customers for their transactions in our ATMs. At present, no charges
shall be levied to our customers for using our bank’s ATMs. Our
customers can use our bank’s card an unlimited number of times at our
ATMs.”
Banks are gearing up to update customers through SMS,
emails, displays on notice board, pasting information inside the ATM
kiosks, among others.
Bad move
Private Bank officials admit,
“It is a bad move from RBI. Customers are certainly not happy.”
Moreover, many private banks are halting ATM expansion plans as
operating them involves cost. Charges for additional transactions will
certainly cover some part of cost.
Customers are forced to
withdraw lumpsum money and keep it at home which is not safe. And, a
rise in customer visits to bank branches for withdrawals or other
non-financial purposes will increase costs, which is much higher than Rs
20, the official added.
Even though technical snags create
hindrances in ATM transactions, it has really brought in ease of
transaction. “Earlier, for all purposes, customers came over to bank
branches. Now, ATMs look after some primary transactions which help save
time at the counter. Here, security issues are a concern for the bank.
But this (RBI cap) restriction will have a cataclysmic effect and
footfalls will really increase,” a manager at SBI said.
Banks are
complaining even as RBI looks the other way. Next on the anvil, fresh
set of rules which will allow NBFCs to start small banks as part of
facilitating greater banking access.
This looks timely given the next phase of economic revival and credit requirements.
However,
at a time when banks are also jittery about disbursing credit freely,
they will also have to focus on designing open platforms and
concentrating on data collation on customer behaviour and how they can
fulfil customer expectations.
Financial inclusion is an
imperative which requires greater banking access and customer awareness
without the penalty component swinging in for no fault of the customer.
Is the RBI listening?
DH News Service
N V Vijayakumar and Umesh M Avvannavar, Bengaluru, Dec 08, 2014, DHNS:
Investors lose $2 billion as stocks drop
The families of four Infosys co-founders, N R Narayana
Murthy, Nandan Nilekani, S D Shibulal and K Dinesh, on Monday sold 32.6
million shares worth over $1 billion (Rs 6,484 crore).
The
sales created ripple effect in the market with the IT bellwether shares
plunging 4.88 per cent to close at Rs 1,968.60 at the Bombay Stock
Exchange and eroding almost $2 billion from the company’s market
capitalisation.
The Sensex closed at 28,119.40 points, down 338.60 points or 1.19 per cent from the previous day’s close.
According
to Deutsche Equities India’s Sanjay Sharma, who closed the deal, the
four promoters sold 32.6 million shares, through multiple deals by
Murthy, Nilekani, Dinesh and some of their family members, and Shibulal.
“Of
the promoter group’s 15.9 per cent share holding in the company, 2.8
per cent share was sold in the deal and now their stake has reduced to
13.1 per cent. The share purchase deal was signed last week and I cannot
reveal the name of domestic and foreign institutional investors,”
Sharma said.
Infosys was founded in 1981 by seven engineers who
pooled in just a couple of thousand rupees. In the current deal, the
promoters sold shares at an average price of Rs 1,988.87 per share.
Murthy
and family sold 12 million shares (23.3 per cent of their holding),
Nilekani and family sold 12 million shares (31.3 per cent of their
holding), Dinesh and family 6.2 million shares (21.5 per cent of their
holding) and Kumari Shibulal 2.4 million shares (9.6 per cent of their
holding).
The last share sale from the founders and their family
members took place in August 22, 2014, when Shibulal's wife sold 100,000
shares for a face value of Rs 3,601 per share and amassed Rs 36.01
crore.
Infosys CEO Vishal Sikka said the founders continue to be
among the largest retail shareholders in the company. “They have
reiterated their commitment to the future of the company and reinforced
their belief in and support of its leadership. The founders have left an
indelible legacy and culture in this iconic company and I respect and
trust their decision of contributing towards philanthropic activities,
entrepreneurship and other initiatives,” Sikka said.
Commenting
on the development, former Infosys CFO and chairman of Manipal Global
Education, Mohandas Pai, said that the share sale is a good move.
“Corporate India needs founders to become investors and get away from
the management,” he said.
When contacted by Deccan Herald,
Infosys issued a statement on behalf of Murthy: “Our family has sold a
minor part of our stake to continue various activities, including our
efforts to encourage entrepreneurship and our personal philanthropic
efforts.”
Infosys share sales has come at a time when the company
is witnessing a major governance and management restructuring with all
the original promoters exiting the management and Vishal Sikka becoming
the first outsider CEO.
DH News Service
Hrithik Kiran Bagade and Umesh M Avvannavar, Dec 17, 2014, DHNS:
It might be right to say that we live in a ‘small car
nation’. The little motors dominate Indian roads, and the country’s
largest car manufacturer, Maruti Suzuki, has been up to the task of
rolling out small cars, since the epic Maruti 800 in 1983.
In
the last decade or more, Maruti’s small wonder, the Alto, has emerged
as the top-selling car in the country. The company has sold 2.6 million
Alto cars in India since it was launched 14 years ago.
The Alto
grew as the real deal when it came to small cars, launching different
variants in the 800 cc-1,000 cc capacities, such as Alto, Alto 800 and
Alto K10, and so on.
As part of Maruti’s plan of rolling out a
fresh stable this year, the company launched the Alto in its latest
avatar - the new facelift Alto K10.
In the green vistas
surrounding the concrete heap of Bengaluru, we plan to test the new Alto
K10, observing its power, comfort and other features. For a long time,
the Alto brand has highlighted reliability and practicality, in terms of
reasonable styling, mileage and pricing.
The new Alto K10 is a revolutionary product, even compared to its predecessor of the same name, and simply calls for a spin.
Design reloadedDefinitely,
one might say that the 2014 Alto K10 is smarter in appearance compared
to the earlier model, though it’s a brief take from the design that
covers its smaller sibling, the Alto 800.
The car has been
developed at a cost of Rs 200 crore on the existing platform of the
model by its engineers along with counterparts at parent Suzuki Motor
Corp in Japan.
The car that we get to drive is a bright Tango
Orange-coloured machine with an inviting aura around it. The car sports a
bold front, with sharp aerodynamic lines running on the side.
The
car reinforces the concept of compactness, standing at a length of
3,545 mm and height of 1,475 mm; and added with a sporty touch that is
sure to make heads turn by young and old alike.
The front of the car is composed of a sporty new bumper, with a slice of chrome on the front grill, adding more character.
The
Suzuki logo sits smartly in the middle, taking the class quotient
higher. The sweptback headlamps compliment the front of the new Alto
K10, with panache. Besides, the wide horizontal lines on the hood, along
with the fog lamps, add further charm to the car’s looks.
The
rear is reminiscent of the Alto 800, with few design element
similarities from the larger Celerio looming as well. The tailgate, with
the jewel-finished tail lamp cluster, adds flavour to the nicely-made
car.
Take your seat in the front of the car and the interiors
will dazzle you. We are thoroughly impressed with the sophisticated feel
that the dashboard provides, owing firstly, to the dual-tone black and
beige colour scheme. The flowing curves and lines, running around the
air-con vents and knobs, and the brilliantly placed piano-finish stereo
system, set new benchmarks to the car, and the segment that it is a part
of.
The silver-finish swanky speedometer cluster gets a classic
touch, complimented by an RPM meter, in front of which, sits smartly,
the pretty 3-spoke steering wheel.
The rear seat is where the
car unimpresses you. Unlike the earlier Altos, the new K10 has such a
cramped back seat space that even a short person sitting there is
most-likely to suffer a muscle catch.
Especially, when a person
in any of the front seats pulls his seat behind for more leg space in
the front, a person wanting to get into the back seat or get off it will
find it extremely difficult.
What the designers have instead
done is to have removed a wedge from the cushion in the back of the two
front seats with the intention of providing people in the back seat the
option of at least resting their knees comfortably.
This, in
turn, tends to disturb the backs of people in the front, including the
driver, whenever the people behind move their knees, since the cushion
of the two front seats is thin. We find the seating in the car a little
bit of a compromise, which means that the car may not be suitable for
families with grown-up children, or large individuals.
One peppy driveThe
paths leading out from the new airport road in Bengaluru are pristine,
with ample driving room, snaking their way through generous stretches of
countryside, plantations and good and bad roads.
We take off,
wanting to see how the Alto K10 reacts while driving from one road into
an all-new different terrain. The drive begins to please from the very
beginning. We are driving the top-end Vxi Auto Gear Shift variant. At
the heart of the car is a lightweight, yet powerful 1-litre K-Next
engine.
The new petrol powertrain at 998 cc seems formidable as
we notice the car’s speedometer reading 0-60 kmph in little over 5
seconds; this for a car which lies at the lower end of the car market.
The
higher compression ratio, drive-by-wire technology, couples with a
maximum power of 68 PS @ 6,000 rpm at a maximum torque of 90Nm @ 3,500
rpm.
Cruising ahead
We approach a straight road and the
vehicle is just cruising ahead with a lot of confidence. The intelligent
auto gear shift, Suzuki’s newly developed automated manual transmission
system, features a shift control actuator that automatically operates
the shift and the clutch. The car can be driven in automatic or manual
modes, on the drive, turning the whole episode on the road into a
tension-free experience.
The roads meandering through farmland, pose major risks owing to the frequent incidence of potholes, ditches or a stray animal.
The
car’s superior turning radius, coupled with a ground clearance of 160
mm, makes the car glide over the blemishes on any road. With a top-speed
of above 120, the braking of the ‘automatic’ car is without any
complaint. Added to the safety mix is a driver-side airbag.
The car also scores well while taking on challenges from inclined roads.
A
few other smart features of the car that we observe are the amount of
storage spaces within the cabin, the conveniently-placed front-side
power window switches, internally-adjustable ORVMs and the keyless entry
feature.
Our drive of over 60 km comes to an end. We are impressed with the car that is promising and is built with seriousness.
Except
for the space constraint, the car scores on every other front. With the
car assuring a fuel efficiency of 24.07 kmpl (even on the automatic),
with all added features, along with a CNG variant, with a mileage of
32.26 km/kg, the new Alto K10 indeed springs a surprise.
Better
still, with six attractive colours to choose from, at an extremely
competitive price between Rs 3.23 lakh and Rs 3.55 lakh (ex-showroom
Bengaluru for manual). The auto gear shift variant of the car, with the
petrol engine, is priced at Rs. 3.98 lakh (ex-showroom Bengaluru).
Maruti seems to have again produced a match-winner, with the ‘Alto’.
Hrithik Kiran Bagade and Umesh M Avvannavar, Bengaluru. Dec 23, 2014, DHNS: Technology and services major Bosch India’s
Energy business has announced plans to partner with the healthcare and
hospitality sectors to push its energy and heating solutions business by
providing sustainable water heating and energy solutions to hotels and
hospitals.
Bosch India Sales Director (Energy)
Venugopalan C M, on Tuesday, told Deccan Herald, “Healthcare and
hospitality spaces require electricity in very high capacity on a
day-to-day basis. Besides, there is also a requirement of hot water on a
regular basis. Bosch’s solar water heating solutions (flat plate
collector and evacuated tube-based heater) and energy solutions (solar
photovoltaic system) will be introduced in select properties in future.”
Venugopalan
hinted that Bosch has already roped in 4-5 hotel properties (mostly
Indian chains), which will have the company set up its water heating
solutions in them by the first quarter of the coming year.
“On
the healthcare front, we have spoken to a few well known hospital groups
across India to cater to their hot water requirements, apart from
energy needs,” he said, however, not revealing further details.
As
a pilot project for the hospitality sector, Bosch on Tuesday
inaugurated its first solar water heating product, a flat plate
collector, at Novotel Bengaluru Tech Park. Joint initiative
A
joint initiative between the Novotel, Bosch Thermotechnology and the
German Energy Agency - Deutsche Energie-Agentur (dena), the project
boasts of an installed capacity of 12,000 litres, out of the total
requirement 34,000 litres of hot water, whose heating was earlier done
using diesel fuel.
“The installation to set up a facility on this
scale costs around Rs 40 lakh, which is borne by the hotel, while we
provide expertise, maintenance and service for a period of five years,”
Venugopalan said.
The company has already provided water heating
solutions of 18,000-litre capacity for Maruti Suzuki at Manesar, in the
latter’s workers quarters. It will also look at malls and infrastructure
facilities such as airports, besides housing.
“We are looking at
sustainable and customised solutions for housing... people interested
in setting up their own photovoltaic system at home, over and above
their consumption, can now do so under new government rules. Here, the
surplus power will get pushed back into the grid, for use elsewhere, for
which the people with (photovoltaic) systems at home will get paid,”
Venugopalan said, adding that the project, already successful in Kerala,
involves installing a customised power-pack kit of 1 KW-5 KW on the
roof of a house, in order to set the system in functioning mode.
“Karnataka
is one of the first states to implement such a distributed energy
consumption model, and we are keen on driving it,” he said, adding that
this will ensure that electricity is be more equitably distributed.
DH News Service
Umesh M Avvannavar, Bengaluru, Dec 25, 2014, DHNS -Public sector lender State Bank of Mysore (SBM)
is embarking on network expansion in South India, where it wants to add
90-100 branches by December 2015 to extend its reach into remote areas,
a top bank official said on Wednesday.
State Bank of
Mysore Managing Director Sharad Sharma said, “We propose to open 90-100
branches by 2015 end, focussing primarily on Karnataka. A minor share of
this growth will be in Kerala and Tamil Nadu.”
With 820 branches
in Karnataka out of a 1,000 branches nationwide, and 140 in Bengaluru,
the bank aims to reach into deeper pockets of Karnataka. SBM is
currently banker to the government of Karnataka and 75 per cent of
government transactions on projects like NREGA is handled through SBM.
On
employment generation, Sharma said, “We have recruited 800 clerks this
year. And next year, we intend to recruit 700 officers. The bank’s total
staff strength as of today is close to 10,500 people.”
SBM
recently raised Rs 500 crore by way of Tier II capital through a bond
offering. “The Basel III compliant Tier II bonds issued by State Bank of
Mysore, carrying a coupon rate of 8.55 per cent per annum, has been
fully subscribed at Rs 500 crore.
The issue was opened and
closed on December 17,” the bank said. “Times have been very difficult,
especially in corporate credit... so, our bank is trying to shift
towards the retail side. In March 2012, we had 730 branches and within a
three-year period, particularly last year, we opened 270 branches. On
Tuesday, the bank opened its 1,000th branch in Mysuru,” Sharma said.
To ensure speedy loans to MSMEs the banks has opened 21 special branches in Karnataka, Sharma said.
“We
have the NPA problem which persists, and is more on a relative basis.
NPAs are much more severe on the corporate side of things. Corporates
are becoming hesitant to make big ticket investments,” Sharma explained.
The
bank had reported a 240 per cent rise in net profit for the
July-September quarter on higher interest income, lower provisioning and
better recovery from written off accounts.
Umesh M Avvannavar and Hrithik Kiran Bagade, Dec 29, 2014, DHNS: -Brazilian company Gerdau, is a leading producer
of long steel in the Americas and one of the largest suppliers of
special steel in the world. With over 45,000 employees, it has
industrial operations in 14 countries, which together represent
installed capacity of over 25 million metric tonnes of steel annually.
The company has an integrated steel plant in Tadipatri in Anantapur
district of Andhra Pradesh.
Gerdau Steel India Managing
Director Sridhar Krishnamoorthy interacts with Umesh M Avvannavar and
Hrithik Kiran Bagade and shares insights on the steel sector in India
and future investment plans. How is the current business
environment for the steel sector in India? Which sectors are driving
growth — infrastructure, construction or automobiles?
The
steel sector in India is growing and future prospects are very
promising. In the past few years, the demand for steel is driven by
sectors such as automotive, defence and railways. The automotive market
is still at a nascent stage, and coming years promise growth in the
manufacturing of 2-wheelers, 3-wheelers, passenger vehicles and heavy
trucks. Gerdau makes special steel (alloyed steel) products for the
transportation, energy and infrastructure sectors. We are happy to
participate in these markets by providing high quality steel combined
with strong technical support and other services. Also, the proposed
projects in railways and infrastructure will be of great interest to
Gerdau.
How is the global market faring?
The
global market is expected to grow by 2 per cent year-on-year from 2014
into 2015. As per World Steel Association, the total demand of steel in
2015 is expected to be 1.5 billion tonnes with half of that coming from
(rate of growth in China will reduce in some percentage terms) China,
but still represent an overall growth in absolute numbers. The Indian
steel industry, with its ambition to develop in various sectors such as
infrastructure, railways and power is expected to grow strongly in the
next 2-3 years.
What is your capex target for this fiscal? Do you expect to meet the target?
Since
2006, Gerdau Steel India has been investing capex, and till date, our
investments are close to Rs 2,700 crore in what we envisage as Phase 1.
We anticipate that our first phase of investments will complete by 2016
and then based on the market situation and stabilisation of the existing
assets, we will consider further investments. What are the reasons for Gerdau’s entry into the Indian steel market?
India
is an emerging market poised to grow in the next few decades. The
growth in the economy will be based on growth in sectors like
infrastructure, energy, automotive and consumer goods. To ensure this
growth, there should be an increase in steel production and consumption
that is required to support this economic growth. This growth will also
mean great opportunities for young qualified people. India has many
qualified and technically competent professionals who are eager to
learn, and Gerdau will be happy to provide them with challenging
opportunities.
Most of Gerdau’s global automotive customers have
already established their presence in India and will also require
quality steel for their manufacturing. Gerdau is well placed to serve
them having already established a strong relationship in Brazil, the US
and other markets. Gerdau has aspirations to be a leading SBQ (special
bar quality/alloy steel) supplier to the automotive industry worldwide,
and hence, we are here, and to build a platform to be in the export
market from India.
How has Gerdau invested in India towards making the country a manufacturing hub?
The
new Indian government is in need of new investments with an aim to
provide opportunities for young people to learn and work. Gerdau has
been present in India since 2007, and we will be happy to share this
experience with potential investors.
As Brazil’s biggest FDI in
India and as the only foreign steel maker in India operating a
fully-integrated steel plant, we have much to share with potential
investors about how India is growing to become a manufacturing hub. Following your recent entry in India, what are Gerdau’s future plans? What timeframe have you set for expansion?
In
India, we have invested Rs 2,700 crore, and the plant is ramping up. We
anticipate that by 2016, we will reach full capacity. We will need to
complete our planned goals in the first phase and then move into the
second phase of growth. We believe in sustained growth. We will also
need to see how the market develops and what sort of policies emerge
with the current new governments at both the Centre and the state.
Certainly, our aspiration for Gerdau in India is not just to grow
bigger, but also to be the best special steel producer in India.
What does Gerdau’s product basket in India include? Who are the consumers of your products?
Gerdau’s
product basket in India includes special bar quality (SBQ) or alloy
steel bars with a circular cross-section of 16-65 mm. Another product is
Round Corner Squares (RCS), and we are now developing a related family
of products called Bright Bars.
Eventually, after these products are
fully established, we plan to make other types of profiles. The final
end consumers of our products are the automotive OEMs. What is Gerdau’s current market share in the Indian steel sector?
As
we are in the ramp-up phase of our operations and completing our second
year, our market share is growing. Additionally, the special steel
sector is highly fragmented with many players having more or less shares
of 4-10 per cent. Eventually our market share will be somewhat similar.
DH News Service
33. Cut no corners: Taking the right call on a recall
Hrithik Kiran Bagade and Umesh M Avvannavar, Dec 29, 2014, DHNS:
In the large — and growing — Indian car market,
manufacturers strive hard to grab their piece of road. Many new car
models, small and big, hatchbacks and SUVs find their way into showrooms
regularly and then into customer garages. Everyone with purchasing
power aspires for a car, goading the market into booming mode.
In
a burgeoning car market like India, even a minor fault with a key
component in a particular vehicle will most likely push the company into
panic mode, and most often than not, hit sales. But when a manufacturer
carries out what is called a “recall” of a car model, he is not only
reassuring customers of the company’s adherence to high safety
standards, but also offering a glimpse into the company’s transparency,
accountability and integrity.
India has had the chance to see its
share of recalls. For a country, where safety comes at a premium, a car
recall serves as a wake-up call for customers as well, to keep track of
their vehicle’s safety record. Unlike, other countries, recalls in
India are still at a nascent stage, yet to get ingrained into market
culture.
Introducing the concept of a recall, a spokesperson
from India’s largest car manufacturer Maruti Suzuki India (MSI) tells
Deccan Herald, “Recall is not a negative word. It is a global practice.
We feel that it is the duty of the original equipment manufacturers
(OEMs) to educate masses that a recall exhibits maturity of the OEM and
of the industry. While in India, it is still voluntary, it is gradually
evolving into normal business practice. It is good to see OEMs taking a
lead in this customer-centric activity.”
As mentioned, in India, a
car recall is still voluntary, unlike abroad. But customers are
becoming more aware and the government is looking to make recalls
mandatory in India as concerns grow over safety of passengers.
Ever
since auto industry body Society of Indian Automobile Manufacturers
(SIAM), started voluntary vehicle recalls in India for safety-related
issues as early as July 2012, over 7 lakh vehicles have been recalled by
various manufacturers, including those from big players like Maruti
Suzuki, Mahindra & Mahindra, Ford, Honda, General Motors, Audi and
Nissan. Now, the government is in the process of framing a mandatory
recall policy that will entail penalties as part of the new Central
Motor Vehicle Rules (CMVR). The anatomy of a recall
So
what exactly does a recall mean from an auto industry standpoint? “A
recall is a process by which the products sold to customers are taken
back by the manufacturers to fix a defect, which could primarily raise
health and safety issues to the customers and public in general,” says
Grant Thornton Partner Sridhar Venkatachari.
According to SIAM,
motor vehicles are designed and manufactured as per notified CMVR
standards in such a way as to be safe for road use. However, sometimes,
after release in the market, it may come to the knowledge of the
manufacturer that some of these vehicles may have safety defects due to
faulty manufacturing either at the end of the component supplier or
faulty assembly at the end of the OEM. In such cases, the manufacturer
recalls such vehicles for inspection and rectifies the defect free of
cost. Recalls are a result of similar potential safety defects observed
in the same vehicle model, and is different from a warranty which is
applicable on defects observed in any single vehicle.
“During a
recall,” says a spokesperson from Honda Cars India, “Vehicle
manufacturers internally analyse the defect related to safety, based on
owner feedback, and can bring in modern techniques of risk analysis
which would include risk assessment, risk management and risk
communication, and decide whether a recall is necessary for such
defects, based on the nature of the potential defect.”
SIAM
explains a recall more technically: “The vehicles are manufactured after
they have been type approved/homologated by a third party testing
agency notified by the government. After the manufacturer becomes aware
of a potential safety defect, it carries out a technical analysis of the
reported defect/potential defect. If proven, the manufacturer announces
a recall. Such recalls are made even if customers have not reported
faults/defects in their vehicles.”
The information thus collected
by a manufacturer is also sent to the Union Ministry of Road Transport
and Union Ministry of Heavy Industry for their records. A specific
format involving details of the vehicle’s inspection is to be followed,
including nature of the defect and estimated number of vehicles
involved, nature of the potential safety hazard and action planned to
remedy the defect.
A formal notification is sent by the OEM to
the vehicle owner as per the records available with the dealer regarding
the recall, requesting him to bring the vehicle for inspection and
rectification free of cost.
This information is also posted on
the manufacturer’s website, indicating the vehicle models or variants
along with instructions on further course of action to be taken by the
owner of the vehicle. Every effort is made through the dealerships to
inform the owner through mails and telephone.
During a regular
recall activity, vehicles are rechecked if they have been designed and
manufactured as per applicable standards in such a way as to be
sufficiently safe for road use.
Sometimes, however, after
release to the market, if in the opinion of the manufacturers, some
vehicles have issues which pose ‘safety concerns’, such vehicles are
voluntarily inspected and rectified by the manufacturers/importers
(distributors) free of cost.
The automobile industry in India,
which is the sixth largest in the world, has experienced a rather
challenging phase with several recalls over the past few months. Fiscal
2014 saw a rise in voluntary recalls by leading auto manufactures owing
to defective airbags or failure of NCAP’s crash test. This sudden rise
in product recalls has left the industry in a state of incertitude.
Venkatachari
says that there are several operational issues to be dealt with while
planning a recall. A specific part/operation in the manufacturing
process that might have introduced a defect must be located.
Among the several operational issues involved in a recall, cost is an
important aspect, which could be significant. A recall hits cost of
manufacturing and it must be ascertained as to who will bear the cost
and how much would be borne by component manufacturers.
“A recall
is mostly likely to affect a manufacturer’s image. Damage limitation,
goodwill, brand value, lawsuits, impact on stakeholders and market
ratings are just a few of the concerns facing manufacturers,” he says.
According
to Toyota Kirloskar Motor (TKM) Director and Senior Vice-President
(Sales and Marketing) N Raja, “The prime challenge in a recall is to
cover all customers for a particular recall. By the time a particular
recall is announced, some customers sell their cars, change locations or
stop taking services from the authorised service workshops.”
Recall challenges
A
practical difficulty while looking at a recall lies in locating owners
of vehicles, which might have changed hands and new contact details
which may not have been updated in RTO or dealer records.
Further
as most of the recalls pertain to a “potential” defect, many owners,
especially commercial operators, are rather blase about taking action
when their vehicles are called back for inspection and rectification
because they do not face a problem from a potential defect. This makes
it challenging for companies to fully rectify defects in affected
vehicles.
Also, apart from sales, recalls are likely to alter customer sentiment and buying behaviour.
Though
there is a sense of transparency on the part of a company, the
resulting spurt in the waiting period for the recalled model would mean
that there would be sizeable migration to other models, or worse, other
stables itself.
But car manufacturers beg to disagree, stating
that it is their duty to ensure customer safety. “As a manufacturer, it
is important to be transparent to customers and provide them with good
quality vehicles. Manufacturers need to demonstrate a high level of
commitment to their customers. This would only enhance loyalty to the
brand,” Toyota’s Raja says.
Maruti Suzuki says that communication
is very critical to a recall. Before a formal announcement, typically
the OEM has to spruce up its back-end to meet the demand to attend to
customer cars, as a way of making customers feel secure. Such
communication and action is seen positively by the customer and helps
reinforce brand faith.
Recall legislation
One must note that
India does not even have a legislation for recall, which is more of a
voluntary decision, unlike in countries like the UK, the US and Europe.
“In most developed markets, such as Europe, Japan and the US,
governments have a policy on automotive recalls. In India, the Ministry
of Road Transport is now working on evolving a regulation on automotive
recalls,” SIAM says.
In the absence of a government policy, SIAM
has implemented a Voluntary Recall Policy in July 2012, which is being
strictly followed by all vehicle manufacturers. SIAM has also stood for
and supported voluntary recall in a bid to encourage passenger safety,
which is different from the way recalls are conducted in foreign
markets.
“The voluntary recall followed by SIAM is in line with
international practice. In developed economies, the RTO records and
dealership records are more updated and accurate. However, as per
information available even in developed countries, recall covers only
about 80-90 per cent of affected vehicles,” the auto industry body adds.
“It
is important to note that even before the government comes out with the
Recall Code, the Indian auto industry under the guidance of SIAM and
relevant ministries has drawn up a Voluntary Recall Code which all
automobile manufacturers are following...TKM also follows the existing
Voluntary Recall Code and has taken voluntary ownership of providing
customers with quality vehicles while they are already using such
vehicles... this initiative is another step taken by the industry to
portray its commitment to society and ensure vehicle safety for the
occupants as well as others,” says Raja.
“Car manufacturers have
been voluntarily following this (SIAM’s) approach whenever they have
detected that there can be potential safety hazards. Safety of our
customers is our topmost concern and this approach has not impacted the
company’s or model’s image negatively,” the Honda spokesperson says.
At the end of the day, a recall ensures a safe approach to car production by manufacturers.
Making it less guilt edged for the manufacturer and rewarding for the customer will be the next paradigm shift for the industry.
DH News Service
Hrithik Kiran Bagade and Umesh M Avvannavar, Bengaluru, Dec 29, 2014, DHNS:
With the curtains going down on 2014,
carmakers have lots to rejoice about, as they look forward
optimistically at the coming 2015, heralding newer trends in a booking
market, supported by fresh launches and new customers.
Indeed,
the year 2014 was a mix of disappointment and joy for the car market.
When the market, as usual, encountered a rocky road, a spurt in the
number of car launches ensured that the customer sentiment remained
intact, and the market be abuzz with new machines to rave about, and
manufacturers are keen to take the latter trend going forward.
According
to Bengaluru-headquartered Toyota Kirloskar Motor (TKM) Director and
Senior Vice-President (Sales and Marketing) N Raja, “The last year
(2014) has been a tough year with a slowdown in the market. Despite new
launches across segments we are present in, we continued to hold and
gain leadership position. The Innova and Fortuner were undeterred by new
launches in the segment and continued to be segment leaders. This year
we have also substantially improved in customer satisfaction and strive
to improve further.”
Toyota, which did not share its
sales/growth figures, is expecting to register better growth in December
when compared to the corresponding month last year, it said in its
statement.
Japanese auto major Honda Cars India (HCIL) is
expecting a growth of over 62 per cent in its sales in India, this year,
at around 1.8 lakh units. Honda had sold 1.11 lakh units in 2013.
“The
year 2014 was a very successful year for Honda as it continued its
growth journey for the third consecutive year,” HCIL Senior
Vice-President (Sales and Marketing) Jnaneswar Sen said in a statement.
India’s
largest carmaker Maruti Suzuki India (MSI) is all set to post record
sales this calendar year, with volume increasing about 13 per cent from
2013.
Its market share in the domestic passenger vehicle segment
is expected to be the highest ever at nearly 45 per cent in the current
fiscal year, which ends in March.
Previous record
MSI
Chairman R C Bhargava said that further expansion is expected in the
passenger vehicle market share, given the growing competition. This
calendar year, the company is expected to sell 11,48,000 vehicles. The
previous record was in 2010, when it sold 10,60,000 units. Maruti has
posted strong sales numbers despite the market remaining sluggish, it
stated.
A slew of new launches and facelifts kept the car market going in 2014, with customers have more options to choose from.
Maruti,
a name to reckon with in the hatchback segment, launched the Celerio
and Alto K10 facelift, introducing Indians to the concept of automatic
manual transmission. Besides, it rolled out the much-awaited luxury
sedan, Ciaz.
Network expansion
The midsize saloon Honda City received a makeover in 2014, while HCIL also launched multi purpose vehicle Mobilio.
Honda
also expanded its dealership network during the year and crossed the
milestone of 200 dealers in the country in November 2014.
South
Korean auto major Hyundai Motor India rolled out compact sedan Xcent and
the elite i20, the winner of Indian Car of the Year (ICOTY) 2015, while
homegrown Tata Motors launched the peppy compact sedan Zest, and also
unveiled latest hatchback, Bolt, sparking a revival for the beleaguered
company. Meanwhile, Mahindra & Mahindra launched the facelifted
Scorpio.
Toyota launched the 11th generation of the new Corolla
Altis and introduced Toyota’s first ever crossover in India – Etios
Cross, apart from variants and limited editions of Etios, Etios Liva and
Innova, in keeping with the demands of the customers. Fiat rolled out
the snazzy compact crossover Avventura.
Even luxury segment
players such as Mercedes-Benz, BMW, Audi and Lamborghini left no stone
unturned when it came to expanding their portfolios.
With
renewed zeal, carmakers are positive about 2015. “The industry is
expected to come back on track putting an end to the prolonged slowdown
next year. Sustained demand for cars, new models, low fuel prices and an
expected decline in the interest rates are expected to facilitate the
revival next year,” Raja concluded.
DH News Service
NEW CARS OF 2015
Company Model
Maruti Celerio/Ciaz
Hyundai Xcent
Tata Zest
Honda Mobilio
Fiat Avventura
India’s second largest private sector lender
HDFC Bank has embarked on an aggressive branch expansion mode, planning
to add 40 more branches in Karnataka, taking the total tally to 230 in
the State by the end of the financial year, according to a top bank
executive.
With this, the bank will grow its network in
Karnataka by 35 per cent, this year. Currently, it has 191 branches
across 30 districts and over 1000 ATMs in the state. Most of the new
branches will have ATMs.
Talking to Deccan Herald, HDFC Bank
Senior Executive Vice-President and Branch Banking Head Dhiraj Relli
said, “We have been very aggressive in terms of expanding our footprint
in Karnataka. Most of our new branches are in semi-urban and rural
locations.
Currently, around 70 branches are in these locations.
All our branches, irrespective of their location and size, offer the
entire gamut of world class products to our customers. We expect the
healthy growth in our branch network to continue.”
To meet its
growing need for human resources, the bank expects to add 300-400
employees this year, which will in turn lead to an indirect employment
of 150 people.
“The bank has a good presence in terms of retail
and wholesale banking, with approximately Rs 30,000 crore in deposits,
which are growing at around 11 per cent in the State,” Relli added.
The
bank is seeing a growth of 15-20 per cent in home loans and car loans
in the State. Retail loans is also showing double digit growth, Relli
said.
As of September 30, 2014, the bank’s distribution network
was at 3,600 branches in 2,272 cities with 11,515 ATMs across India. At a
national level, the number of employees increased from 69,662 as of
September 30, 2013, to 75,339 as of September 30, 2014. Overall, the
bank has around Rs 3,90,000 crore deposits.
The bank’s customer
base ranges from retail to mid-sized businesses and large corporates
across IT companies, manufacturing and other sectors. “Most of the
corporates and institutions in Bengaluru bank with us,” Relli said.
Speaking
about net banking, Relli said that the usage of net and mobile banking
in the state is very high. Bengaluru city today ranks the highest in
terms of net banking penetration/usage in the country (alongside
Mumbai). The city alone accounts for 11 per cent of the net banking
users pan-India.
There has been a growth of 20 per cent in absolute net banking users in Bengaluru over the last 2 years.
The
Foreign Investment Promotion Board (FIPB) has cleared HDFC Bank’s
proposal to raise Rs 10,000 crore. Shareholders in May this year allowed
the lender to raise Rs 10,000 crore through routes that may include
public or private placement as well as domestic or international
markets, the bank said.
On challenges, Relli said, “We hope to
see more industries taking root in Karnataka.” On Tuesday the bank
opened its 100th branch in Bengaluru at J P Nagar 5th phase.
Cars today have become increasingly connected.
They are offices, hangout places, virtual homes, media centres,
entertainment platforms and navigation hubs for its users.
With
the rise in the number of in-car engagement platforms from handsfree
phone systems to satellite navigation, there is a rising risk of
accidents due to driver distraction. To effectively deal with such
scenarios, the automotive user interfaces are increasingly integrating
extremely complex multi-modal interfaces (Human Machine Interface-HMI).
Multi-Modal HMIs aim to provide more intuitive and natural ways for
people to operate and control a computer or a machine. Tata Elxsi
Vice-President (Transportation Business Unit) Anil Sondur tells Deccan
Herald’s Umesh M Avvannavar and Hrithik Kiran Bagade how multi-modal HMI
works, its scope and the company’s way forward.
Can you give an overview on multi-modal HMI?
HMI
allows users to use different modalities, while interacting with car
devices like Infotainment Head Unit or Clusters. Keyboard inputs and
mouse clicks were the traditional modalities of HMI, but over the last
five years, advanced input modalities such as speech, gaze, touch and
gesture have gained importance and thus the term, new multi-modal HMI,
has been coined.
What are the benefits of HMI?
Multi-modal
HMI has been largely adopted in the automotive industry towards
enhancing the safety and infotainment features of a vehicle. Multi-modal
HMI helps in reducing driver distraction, thus aids in creating an
accident-free vehicle.
Some of the key benefits of HMI are:
• Rich UI experience inside the vehicle differentiates a car manufacturer from the competition
• Safe operations of features like navigation, phone, multimedia by enabling a user-friendly HMI
• Creating branded applications hosted on the smartphone application store
What growth do you predict for the HMI market? What part will multi-modal HMI play?
The
global HMI market has seen significant growth in the past few years,
and is projected to grow at a CAGR of 10.4 per cent from 2013-2019.
Multi-modal HMI is still at a nascent stage, but will pick up very soon.
How do multi-modal HMIs, in particular, minimise driver distraction?
The
automotive industry is largely harnessing the goodness of multi-modal
HMI to reduce driver distractions. The thought behind the optimum usage
of multi-modal HMI is to prioritise information and reduce driver
workload.
Integration of varied comfort and safety user
interfaces into a single system helps reduced driver distraction. OEMs
are actively configuring a solution for creating a uniform style of HMI
solutions across their product lines to minimise driver distraction.
Why would multi-modal HMI drive the future of automotive industry?
‘Driverless
car’ is the next big thing in the automotive industry. Multi-modal HMI
will be performing an extremely crucial role in turning the concept of
driverless car into a reality.
According to a new analysis from
Frost & Sullivan, ‘Strategic Analysis of European and North American
Automotive Human Machine Interface Market’, 16 million cars will be
equipped with basic voice interface, 6.9 million with advanced voice
interface, and 1.2 million with multifunctional knobs in Europe by 2017.
Meanwhile
in North America, 13.6 million cars will have basic voice, 6.8 million
advanced voice, and 0.9 million will be equipped with multifunctional
knobs by 2017.
The Indian market is now witnessing advanced
infotainment systems taking the traditional radio system to the
backseat. Users are clear in what they need, and now, voice and
touch-based controls are becoming common. The trend is set to continue
and very soon, we will see cars carrying other multi-modal HMI features
on board. Therefore, there is tremendous potential for multi-modal HMI
to drive the future of the automotive industry.
What are the upcoming trends in this space?
The
industry has witnessed incredible developments in embedded voice
technology into interconnected devices, and enabling those
interconnected devices to be integrated with automotive systems.
Therefore, voice is increasingly becoming a very important feature of
interaction with HMI in the vehicle.
Gesture holds huge potential
as an important feature in the next few years. Very soon, the display
technology will be delivering 3D features as well.
What is the contribution of Tata Elxsi towards HMI?
Tata
Elxsi has developed its expertise in areas like design and software
implementation in HMI, for the past 10 years. We are among a few
companies in the world focusing both on visual design and software
implementation of HMI.
Tata Elxsi is creating an independent
layer of HMI, which is generally called the abstraction layer, where the
HMI will be independent from the rest of the system.
This will
help OEMs independently build on the HMI and control its development,
maintaining the usability and the ability to learn the HMI quickly, when
adding new features. We are also looking at the next paradigm by 2030
ie. driverless cars or autonomous driving, which would require
phenomenal increase in the number of ways and methods to interact with
the car.
DH News Service
Mumbai-based Netmagic Solutions (an NTT
Communications Company) is planning to set up a data centre at
Chandivalli in Mumbai at an investment of Rs 700 crore, and the facility
shall go live for operations in July 2015, a top company official
said.
Talking to Deccan Herald, Netmagic Solutions
Executive Director and President Sunil Gupta said, “A data centre is a
specialised building which is militarily secure, and equipped with high
power and cooling density to host large ecommerce entities like
Flipkart, and Snapdeal, besides applications like ERP and mail servers
of enterprises, banks, etc. A major part of the Rs 700-crore investment
has come from parent company NTT Communications.”
The company
plans to hire an additional 400 employees in FY 2015-16 to manage the
growth of its data centre and cloud /IT services businesses.
“Besides
this initial investment, an additional investment in excess of Rs 1,000
crore would be spent over the next five years to set up a large cloud
grid at this data centre, besides other IT infrastructure for
customers,” Gupta said.
The company is growing at a pace of 35 per
cent CAGR (compounded annual growth rate) for the last four years and
within this, cloud business is witnessing a growth in excess of 100 per
cent, he said.
NTT Communications is part of NTT Corp (Nippon
Telegraph and Telephone), a Tokyo-based $100-billion group, which is one
of the world’s largest telecom operator by revenue and also the largest
data centre operator by square footage with over 170 data centres
around the world. Other companies of the group which operate out of
India are Dimension Data, NTT DoCoMo, and NTT Data. Together, they
employ more than 15,000 employees in India, mainly operating from their
campuses in Bangalore, Hyderabad, and Chennai. Netmagic Solutions
currently operates eight large data centres in India across Mumbai,
Bangalore, Delhi, and Chennai, and offers managed hosting services and
cloud computing services. It employs about 1,100 people in India and
services about 1,500 customers, including names like Flipkart, Myntra,
Jabong, Makemytrip, RBL, HDFC, IIFL, etc.
It was recently
reported that the Finance Ministry had approved Netmagic Solution’s
proposal to increase NTT Communication’s stake in it to 81.6345 per cent
for Rs 575 crore.
Hrithik Kiran Bagade and Umesh M Avvannavar, Bangalore, Dec 01, 2014, DHNS:
Green energy acceleration is still not in. But
pioneering companies like Toyota, Nissan and Mitsubishi have fought
doggedly to push alternative fuel technologies around the world.
The
automobile firmament is still grappling to find the right balance
between utility, power, mileage and sheer beauty which the customer
craves. ‘Green cars’ come and go with the panache of a magician
conjuring up one trick after another, but auto companies are not running
out of steam yet.
Toyota’s Camry says it just about right. Just
about right? Well, the fact that the company’s superstar Camry’s hybrid
version is looking to spawn variants, which will hopefully match the
trail blazed by the first Camry in the petrol-loving Indian market over
the past year. Still, it’s just about right. The sales challenges
potholing the road ahead are as daunting as the customisation required
for harsh Indian driving conditions.
Toyota Kirloskar Motor (TKM)
Senior Vice-President & Director (Sales & Marketing) N Raja is
lyrical when it comes to the feature push. Sales of the Camry have not
been promising as in the western markets. But hopes ride high on the
smooth ride and the raw power belted out by the lithium ion battery.
“There’s
nothing like an electric car for a smooth ride. The vehicle starts and
runs on the battery predominantly with the engine operating/starting
only when required. This helps the vehicle maintain the lowest NVH in
its segment — and, the quietest drive,” Raja tells Deccan Herald, at the
Toyota corporate office on Bengaluru’s Vittal Mallya Road.
The
engine and motor together give an impressive combined power output of
205 PS. In addition to powering the vehicle, the motor is activated as a
generator to convert the moving vehicle’s kinetic energy into
electricity. The generated electricity charges the battery. This
process, which usually happens at the time of deceleration and braking
and is called regenerative braking.
The vehicle gives an
exceptional mileage of 19.16 kmpl, the best in its segment. A testimony
to its hybrid technology, the car produces just 122.8 gm/km of CO2
emissions per km of driving, far lesser than approximately 175 gm/km
from a conventional vehicles of similar engine size.
Buoyed by
the response to its hybrid sedan Camry, Toyota is mulling bringing more
such vehicles with alternative fuel technology to India. The company is
celebrating the first anniversary of its Camry Hybrid in the country.
Over the past year, the 541 units of the hybrid version have been sold.
So, has the hybrid journey for an auto technology ‘innovator’ like Toyota been smooth?
Globally,
Toyota is a pioneer in introducing hybrid cars and rolled out the first
mass produced hybrid vehicle, the Prius, in 1997. Till date, the
company has sold more than 7 million hybrid vehicles.
As of
today, Toyota Motor Corporation sells 27 hybrid passenger car models and
one plug-in hybrid model in approximately 90 countries and regions
around the world. The auto major boasts that its hybrid vehicles have
resulted in approximately 49 million fewer tonnes of CO2 emissions.
Hybrid
vehicles account for 14 per cent of TMC’s global vehicle sales. On
Toyota’s home turf, Japan, around 44 per cent of cars the company sells
is hybrid, while it is about 13 per cent sold in the United States and
20 per cent in Europe. The India Road Show
The
Indian market is also not new to hybrid cars, especially from the TKM
stable. The company initially launched the Prius, back in 2010, and then
embarked on a greater task of locally manufacturing the first hybrid
car in the country. Hence, the locally-made Camry Hybrid debuted a year
ago, with renewed plans to introduce Indian car lovers to alternative
fuel technologies.
Customers in India, looking for cars in
general, and high-end cars in particular, have always opted for
conventional vehicles of European make. To break the trend down further,
an average car consumer in India, though very particular about fuel
efficiency, has advanced to accepting cheap and dependable diesel fuel,
heralding a boom in sales of cars that run on diesel. Consequently,
hybrids, much like electric cars, are yet to carve out a space in the
psyche of the Indian car buyer.
“The hybrid market is getting
popular in India; however, there are a few challenges to overcome to
further propel this growth. Lack of awareness among people about hybrid
technology is a problem,” Raja claims.
If one were to enumerate
reasons for the market’s slow progression towards the acceptance of cars
running on alternative fuels, predominantly hybrid ones, several
misconceptions exist in the mind of an Indian car buyer that deter him
from investing in a vehicle running on an alternative fuel source. Says
Raja, “There are several issues that rage in the mind of a car
owner/potential car buyer when it comes to hybrid technology.”
For
a start, in recent times, consumers have come to understand and invest
in electric cars, which are battery-driven and popular, owing to the
range (distance travelled) they provide per charge, leading to huge
savings on fuel. One of the major areas of confusion affecting consumer
sentiment about hybrid cars in India is that ‘hybrid’ tends to fall
under the high maintenance category and requires additional maintenance
in comparison to conventional vehicles. This is a fallacy.
Another
major misconception baffling consumers involves charging. In reality,
no external charging is required for these vehicles, which charge
themselves while on the drive. Unlike electric cars, a hybrid car can
run a long distance much like its conventional peers. Hence, there is no
limit on the distance it can travel and its speed and range is similar
to a conventional vehicle. Also, its periodic maintenance is similar to
that of a petrol car.
“Few impediments that exist for
acceptability of such hybrid vehicles is awareness (in this case,
electric power does not need charge stations, the battery stores and
recoups energy through regenerative braking technology), infrastructure,
right regulatory and fiscal environment,” reiterates Grant Thornton
India Partner Sridhar Venkatachari, adding that customers should be
educated about how some of these new technologies are addressing their
key concerns such as need for charging stations, how non-polluting/less
polluting (air and noise) it is, how performance-oriented these vehicles
are, safety features and cost of maintenance. Hybrids provide the best
of both gasoline and electric-driven passenger vehicles.
It
is important to briefly understand what exactly is hybrid technology.
Hybrid literally means ‘fusion’, integrating two distinct, yet related
aspects. Cars that run on hybrid technology use a combination of two
power sources, which are a powerful petrol engine and an electric motor.
The Camry Hybrid, for instance, combines a newly developed hybrid
exclusive 2.5L beltless petrol engine with an electric motor.
Toyota
believes that mass market adoption of hybrid technology for cars will
help in economies of scale and thus drive competitive pricing. “Moving
towards adoption of alternative fuel is a trend that has been observed
in the global market and is the obvious way forward for the developing
markets as we prepare to overcome the impending energy crisis,” Raja
affirms.
The government should encourage vehicles using
alternative fuels by regulation and incentives. There are countries
which levy additional tax for CO2-based passenger vehicles. Conversely,
reduced road taxes, preference in parking space, exemption from tolls,
lower excise duty on components and vehicles, reduced VAT, tax benefits
on R&D, would shift the demand in favour of these cars. Improved
infrastructure like charging stations and filling stations will add
momentum.
The government announced the National Electric
Mobility Mission Plan 2020 (NEMMP 2020), last year, which sets the
target and provides the roadmap for achieving significant penetration of
electric and hybrid vehicle technologies in the country by 2020. Proper
implementation of schemes under the NEMMP 2020, which estimates 6-7
million unit sales over the next 5-year period, in right earnest, would
lead to a significant market potential for hybrid and alternative fuel
cars.
The future
Based on its belief that
environment-friendly vehicles can truly make a difference if they are
widely used, Toyota has endeavored to encourage the mass-market adoption
of hybrid vehicles, globally. The company is of the belief that the
only way to overcome carbon emission woes is by adopting “alternative
motoring” and other futuristic concepts and technologies.
“We are
constantly working on raising performance, reducing costs, and
expanding product line-up, including non-hybrid environment-friendly
vehicles,” Raja says.Toyota believes that the more widely used
environmentally-friendly vehicles are, the more positive an impact they
will have. “To popularise eco-cars, we want to continue promoting hybrid
vehicles, plug-in hybrid vehicles, electric vehicles, and fuel cell
vehicles that meet fuel diversification needs and allow customers to
choose the best eco-car in terms of vehicle usage, performance, and
price,” Raja said.
Umesh M Avvannavar and Hrithik Kiran Bagade, Jan 19, 2015, DHNS
A corporate office today is not what it used to
be a decade ago or for that matter a couple of years ago. Workplaces
are changing with employees demanding healthier,
technologically-advanced, and flexible spaces. Congested offices
littered with files are passé. Collaborative, open, green, innovative,
well-lit office floors are in.
The development offers
an opportunity for the corporate interiors management sector, which is
expected to grow by 15 per cent in 2015 with revenues of around Rs 3,700
crore.
Cherry Hill Interiors, which operates in the sector, is
relishing the opportunity to furnish more efficient ‘green offices’.
Rajiv Mohan, the company’s Managing Director, tells Deccan Herald’s
Umesh M Avvannavar and Hrithik Kiran Bagade about the company’s journey
so far.
Can you tell us about Cherry Hill?
Cherry
Hill’s journey began in early 1987. With a CARE rating of ‘A’ in
long-term and ‘A1’ in short-term, we operate in the space of corporate
interiors, fitting offices for many multinational companies (MNCs)
present in India, viz. Google, Yahoo!, Dell, Microsoft, HSBC, BT, Morgan
Stanley, Cargil, Adobe, Aon Hewitt and Bank of America, among others.
We
are a specialist in this space, since we have the capacity to deliver
the largest places in a single location for a single client on a general
contracting (GC) basis. Now, we are in the process of aligning the
organisation as the biggest and best player for big jobs and large areas
on GC basis. Currently, we are operating from Delhi NCR, Bangalore,
Hyderabad, Chennai, Kolkata, Mumbai, and Pune.
Can you explain what is general contracting (GC)?
GC
stands for general contracting or general goods contracting. The trend
used to be that if there is a site, the client would use the services of
multiple service providers for different jobs. But under GC, we provide
360 degree services on a turnkey basis to the client. That way, the
client needs to interact with one company only, which makes its job also
easier. And from our perspective, it is better revenue booking on each
side. This model is popular in western countries, but is not present in
our country for some reason. Now this model can be replicated here also
successfully.
The GC model positions us as integrators of fit-outs
with essential services. It also reduces client co-ordination time
(between different service providers) significantly. A downside is that
there are not many corporate interiors companies which are equipped to
take up big jobs on a GC basis because of lack of expertise, initiative,
financial strength, resources, and opportunities. But we have
established a lead in this business over the years.
Where are the emerging areas for corporate interiors in India?
We
are concentrating in Bengaluru, besides surrounding emerging hubs such
as Mysuru and Hubbali, apart from Belagavi, one of the fastest growing
towns. Then a lot of activity is also seen in areas around Delhi NCR,
followed by Chennai, Mumbai, and Hyderabad. Bengaluru and Hyderabad are
more for IT/ITeS organisations, whereas Mumbai and Delhi NCR have a mix
of IT and finance, banking, and investment sector.
Apart from them,
Coimbatore is also coming up. Kolkata has picked up from only the last
couple of years. It is estimated that the cumulative demand for space
would become almost 130 million sq ft in three years.
How different is the Bengaluru market from the other markets?
Indian
cities are expected to be the top performing in terms of office space
demand in Asia-Pacific. Bangalore is the leading real estate market in
the country due to the expansion of IT, ITeS and multinational
companies. After Bangalore, NCR it is the biggest place offering big
volume of office places to so many clients.
What are the challenges you face?
I
would say that corporate interiors is not an organised sector. The
spaces which constitute over 35 million square feet of consumption per
year are in the so-called organised sector, made up of ‘A’ grade
clients. What is happening is that since the sector is not
well-organised, growth takes longer than required. In the organised
sector, we would have achieved much faster growth than what we have
achieved now. Due to this being an unorganised sector, there are many
gaps in terms of achieving numbers, which we could have done so much
easily as an organised sector.
In general, the organised sector is increasing every year which will have a positive impact on our topline on a y-o-y basis.
Also,
state-level VAT and its inconsistencies pose a challenge. We strongly
welcome the Government’s GST initiative which is expected to streamline
the taxes.
Which are the other key players in the corporate interiors space?
We
are a pan-India organisation. We usually compete with a few players but
these players are mostly regional in nature. In every region, we have a
separate set of regional competitors. We don’t have one single company
to compete with us in all regions. In other words, we are the only
multi-location player in the corporate interiors space.
Can you tell us something about Cherry Hill’s turnover?
Our
turnover for the previous year was to the tune of Rs 175 crore. South
India contributed 33 per cent of our turnover. This year, we are sure of
achieving around 30 per cent growth.
What are your company’s future plans?
Our
future plans are very precise and we have seen that there is scope for
expansion in some of the existing cities where we are operating, like
Bengaluru. As we speak, we are in negotiations for another million sq ft
of space in Bengaluru. Other than that, we have also picked up Kolkata
and Coimbatore in terms of further development. We are developing
various systems and processes, including use of cutting-edge IT to
improve the project delivery time. We are developing a smartphone app
for providing our clients real-time data with various value-added
features.
Are you going to enter into tie-ups for global ventures?
We
are already representing big MNCs, whose products we sell. We have
exclusive licences for representing them or selling their products
pan-India. We have a trading position with them right now, which reduces
time and cost factors. We are also looking for a strong financial
partner to grow our business in the long-run.
What new trends have you found in terms of office design?
You
see, earlier offices were designed to a budget. The latest trend is
that clients are telling designers to make up the office space to be
functional and flexible, so that the same office can be used for
business in different environments, which are created in different areas
of the same space. What is required is for people to have their own
space, which can give them their own time, doubling up as their private
space too. This is a very good combination because it reduces work
pressure and load on an employee, making work more fun.
What future do you see for green buildings in India?
The
green building movement in India has gained tremendous impetus over the
years. More than 75 per cent of buildings that would exist in 2030 are
yet to be built. There is huge potential in design and construction of
green buildings. India is also starting to ride this wave, and clearly
can be a large market.
Hrithik Kiran Bagade and Umesh M Avvannavar, Jan 21 ,2015,Bengaluru, DHNS
DSK Motowheels, the automobile arm of the
diversified DSK Group, on Tuesday announced its strategy to grow in
India’s burgeoning superbike market, with plans to launch yet another
cult bike brand in the country in the months to come.
The company has signed an agreement with Italian superbike major Benelli to assemble and sell the latter’s products in India.
Five
of Benelli’s bikes are poised to hit the road by March, this year. The
bikes, TNT 302, TNT 600 GT, TNT600 i, TNT 899, and TNT 1130R, will be
sold through a network of nine dealerships, at Ahmedabad, Delhi,
Chandigarh, Mumbai, Pune, Hyderabad, Chennai, Bengaluru and Kolkata.
“Benelli
is the first European bike brand to have a wide portfolio of products
in many engine capacities (300 cc, 600 cc, 899 cc and 1,130 cc). The
models are expected to be priced competitively and will become the game
changer,” DSK Motowheels Chief Operating Officer Shivapada Ray claimed.
DSK aims to sell around 3,000 Benelli units this year itself, and to take the dealership count to 22 during the period.
“Thanks
to a variety of factors such as aspiration, higher income, awareness,
improving roads and emerging culture of biking, the superbike story in
India is about to boom. There are already 12 luxury superbike brands in
the country at present, with five more knocking at the market’s doors.
Growing at over 80-100 per cent year-on-year, the Indian superbike
market will see a great future in the next 3-5 years,” Ray said.
The
company already markets South Korean bike brand Hyosung’s models in
India, namely GT250R, GT650R, GT650N, Aquila Pro, Aquila 250, and ST7.
“Hyosung is the second largest superbike brand in India (after
Harley-Davidson). We expect to close sales at around 3,300-3,500 units
in this fiscal year, and expect to sell a lot more in the coming year,”
Ray added.
DSK is also planning to add 10 more dealerships to Hyosung’s current 41.
The
company’s assembly plant at Wai, Maharashtra, where Hyosung bikes are
assembled from CKD (completely-knocked down) kits, will also accommodate
Benelli’s stable.
“Presently, the plant has a capacity to
assemble 12 bikes per day, per shift, which is likely to go up to 20
bikes. This will also include the assembly of Benelli bikes,” Ray said,
adding that Benelli’s products will also be sourced as CKDs, assembled,
and sold.
Hrithik Kiran Bagade and Umesh M Avvannavar, Jan 21, 2015, DHNS
Rugged body: This beast is composed of a 2.5-litre, 4-cylinder DOHC diesel engine, which delivers output of 178ps
A weekend calls for that much-needed break from
the busy week gone by. Turning the weekend into a fast, rugged and
power-pumped adventure drive adds meaning to the adage, ‘cherry on the
cake’.
Our choice of vehicle for the adventure is the
Pajero Sport. That’s right. Think Pajero, think all-terrain! The
Mitsubishi Pajero Sport is an awesome utility vehicle and takes off
pretty well after its legendary namesake — ‘The Mitsubishi Pajero’. The
latter was imported to India from Japan in March 2002 in the form of a
completely built unit (CBU). The Pajero Sport was relaunched in the
Indian market by Mitsubishi Motors India in association with Hindustan
Motors in March 2012.
After driving into and out of different
terrain with the super SUV, we are happy to state that our weekend
adventure with this formidable sports utility vehicle is a ‘piece of
cake’.
Our morning begins on a sedate note.
We survey the
humungous Mitsubishi Pajero Sport manual version, and its intimidating
aura. Standing at a length of 4,695 mm, with a width of 1,815 mm, and a
height of 1,840 mm, the Pajero Sport is a head-turner with its sharp and
highly sophisticated looks. Its contemporary design at once commands
respect and speaks of refinement.
The SUV is based on Mitsubishi’s Triton pickup truck, and like its rival Toyota Fortuner is based on the Hilux platform.
The
Pajero Sport is sportier as it gets. Its magnificent chrome front
grille, sporty side step and roof rails add character, even as the
trendy rear spoilers, 12-spoke alloy wheels, chrome finished outdoor
rear view mirrors (ORVMs) with indicators, rear intermittent wiper and
washer, front fog lamps and wrap-around rear tail lamps assume a
menacing, yet dignified look. The large headlamps flanking the nicely
sized and centre-placed Mitsubishi logo, Three Diamonds, is the most
stunning aspect of the car’s overall beauty.
The SUV, as we find, is also large enough to comfortably seat seven people (including the driver).
The
Mitsubishi Pajero Sport is another word for good space and relaxed
seating. With three rows of seating, including the dashboard area, the
car is fit for a pretty big family with leanings for off-roading and
adventure. The seats are plush and king-like, and the versatile nature
of the second and third rows is commendable and they can be folded in
the desired fashion to provide for more space.
A few intelligent
features about the interiors impress us. The premium leather-wrapped
steering wheel is a joy to hold. Several striking elements such as the
sunglass holder, vanity mirror, front door pockets with cup holder,
second row seat armrest, front room lamps with map lights, and front cup
holders on floor console, ensure its place as a family car even more.
The
front instrument cluster, though simple, is fitted with many relevant
specs. Most impressive of all is the touchscreen in the centre-console,
which helps control the music system, bluetooth connectivity, watch
movies if need be and also allows the driver to easily reverse and
manoeuvre the car, aided by the reverse camera.
Mention must be
made regarding the high-quality air conditioning system. Rear AC vents
have been carved above the last two rows, and the cooling and speed can
be controlled independently. Peaceful rev up sans noise
It’s
time to test the all-terrain capabilities of the Pajero Sport. We
decide to take the machine through the wide and elevated Tumakuru Road,
all the way through the inclined hairpins towards Devarayanadurga. The
route will allow us to check the car’s behaviour as it transcends from
one type of terrain into another.
The engine revs up with a
peaceful burst of energy, with little or no ambient noise whatsoever.
The refinement of the engine begins to dawn on us, as we begin moving
the car slowly forward in the 4X2 mode. We mildly begin to hit the
acceleration pedal harder, and suddenly the car wakes up and begins to
come into its own.
This beast is composed of a 2.5-litre, four
cylinder DOHC diesel engine, which delivers an impressive output of
178ps. As it cruises at a gradually accelerating pace, the Pajero Sport
builds up speed that is quite strong in the mid-range. Having already
crossed the 100 kmph speed threshold, we are hitting the pedal on the
Tumakuru Road at an average speed of 130 kmph, while we have been told
that it can easily hop onto the 200 kmph mark on continued acceleration.
The car is behaving seamlessly, even as it takes on pockets of
traffic dotting the road. A massive SUV charging like a bull from behind
might intimidate a few people, as we see many motorists give way to us
on seeing the Pajero Sport loom large in their rear-view mirrors.
In
terms of power, though there is touch of turbo-lag below 1,800 rpm, the
mid range is quite inspiring to drive. It pulls quite effortlessly to
4,000 rpm and overtaking becomes a joyous affair and commands a bullying
(read condescending) presence on the road.
In terms of its
engine build-up, we learn that a common rail fuel system delivers a
precise, steady fuel supply to each cylinder, enabling maximum output
with minimum waste for better efficiency and reduced emission. The
computer-controlled feedback system allows for continual adjustment,
ensuring peak performance at all times.
The car’s 16-valve
layout arrangement creates a more complete air/fuel mixture and steadier
flow for consistent high performance. The precisely balanced
roller-rocker arms and scissor gears provide exact valve timing for more
power and combustion.
The variable geometry turbo (VGT) delivers
effortless power, right when you need it, while maintaining fuel
efficiency by achieving an optimal turbo aspect ratio at any given
speed. The VGT harnesses the power of the exhaust emissions, ensuring a
constant delivery of fresh air to the engine for optimal output and
performance.
We have begun taking off on the rising road on the
hillock leading to the temple town of Devarayanadurga. It’s past midday,
and the heat has just set in. It is here that the true prowess of the
car’s AC is felt. Throughout the cabin, the cooling is well-maintained.
For
music and entertainment, the car features a high-quality audio system,
which can be handled through steering-mounted controls.
The
Pajero Sport doesn’t use a full-time 4WD, but is powered with
rally-tested, shift-on-the-fly ‘Super Select 4WD’, which is a bliss.
This enables the driver to shift to 4WD and 2WD without stopping the
car, up to speeds as high as 100 kmph. This gives the car an edge over
the competition, and makes the ride all the less bumpy. Best SUV to drive
Though
the Pajero Sport is meant essentially for off-roading, it is not the
easiest of the SUVs in town, thanks to its heavy clutch and tight
steering. But it is surely one of the best SUVs to drive.
The
super stable suspension and the 215 mm ground clearance just tops it
all. An unimpressive aspect that catches us off-guard is the hard manual
transmission. The five-speed manual gearbox is a hassle to shift on a
high-speed adventure drive. Its ladder-frame chassis, however, has been
engineered quite well for driving comfort.
The double wishbone
setup does the job for the front suspension and at the rear, the car
sports a three-link setup with coil springs, besides sporting anti-roll
bars at both ends.
Be it a puddle, a ditch or a gravel by the
side of the road, the Pajero Sport makes mincemeat of them all. With a
steady climb speed, and a turning radius of 5.6 metres, the car is sure
to take the driver by surprise, besides adding that sense of security.
We attempt to mount the SUV on a rock and lo! It perches on it like a
‘rock’.
An SUV needs to keep its passengers safe, and precisely
for that, the Pajero Sport includes a host of safety features. Anti-lock
Braking System and Electronic Brake-force Distribution (ABS with EBD),
collapsible steering wheel, crash detection door lock system shutdown
and electronic immobiliser are just few of the safety features. Though
we hope that the car carries more than the mere two (passenger and
driver) airbags.
Primarily, SUVs are not considered to be
fuel-efficient vehicles, but this belief is pleasantly dashed by the
Pajero Sport, which gives a reasonable 12 kmpl mileage owing to a
lighter engine. On reaching the summit of the hillock, it’s time to
ponder over the safe drive and how the relaxed downhill descent might
be.
For those wanting to pick up a Pajero Sport, the SUV is
priced at Rs 25,62,000 for the manual, while a recently launched
automatic variant costs Rs 25,31,000 (all ex-showroom Bengaluru prices). (With inputs from Shreyas N)
Umesh M Avvannavar and Hrithik Kiran Bagade, Jan 21, 2015, DHNS
Aditya Patel: The Q Drive gives people an opportunity
not only to experience the Audis but to experience them in a rugged
terrain, making it more than
Taking on gravity-defying obstacles in a real multi-terrain environment is not for the faint-hearted.
German
luxury car manufacturer Audi recently organised the third edition of
its flagship event ‘Audi Q Drive’, to give users a hands-on feeling of
the company’s ‘meanest’ machines, the SUVs, and experience an
exhilarating off-road driving adventure.
Audi has always been
at the forefront of engineering cars par excellence. From the zooming
sports cars, commanding sedans, to the roaring SUVs, the Audi stable has
charged the Indian market with a robust portfolio of magnificent
steeds.
“The multi-city Audi Q-Drives establishes our connect
with our target consumers and helps us explore the huge potential that
India has to offer. Our luxury Q range of SUVs has been very popular in
the land of quattro-India and the younger demographic has shown immense
affinity for them even in smaller cities,” Audi India Head Joe King
said.
The Q Drive, which was held in Bengaluru on December 20-21,
brought Audi and automobile enthusiasts alike an opportunity to come
and grab a chance to experience the superlative style, performance, and
quattro technology of Audi’s premium SUVs — Audi Q7, Audi Q5, and Audi
Q3. Each motorist had a chance to test some of the best SUVs in the
market, and feel their superior build in real-time drive situations.
According
to Gajanan Hegdakatte, Vice-President (Sales and Marketing) Audi
Bengaluru, “We are happy to bring such a successful programme to our
city once again. Numerous enthusiasts have the unique chance to enjoy
the advantages of quattro technology in Audi SUVs on a natural off-road
track.”
What differentiates Audi’s Q-series SUVs from the
competition is the composition of their ‘quattro’ engine. The term
‘quattro’ translates as four in Italian. It is the sub-brand used by
Audi to indicate that all-wheel drive (AWD) technologies or systems are
used on specific models of its Audi automobiles. Quattro was first
introduced in 1980 on the permanent 4WD Audi Quattro model, often
referred to as the Ur-Quattro. The term quattro has since been applied
to all subsequent Audi AWD models.
Clear, yet unclear
We
reach the event venue, and before we get down to the drive, take stock.
The track in front of us is clear, yet unclear in the literal sense.
The rugged track has been specially laid for the drive, posing
challenges at different levels to drivers. The track is roughly
stretching across an area of around three km, and is made up of all
kinds of off-road obstacles, such as a long-side trench, sidewall, slush
pit, and a rock bed.
It should be a pleasure to drive through
such a rigid track, testing the limits of our driving skills, and the
cars themselves, is what we believe.
We seat ourselves in the
compact Q3. There is that hint of nervousness, peppered with
anticipation. ‘To drive or not to drive’ is the echo resonating out of
every heartbeat. The first attempt to conquer the terrain is heady,
nonetheless we move on.
To master the obstacle course one has to
accelerate slowly at a snail’s pace, keeping absolute control on the
steering wheel, and complete grip on the braking. With grit and added
confidence, we trudge on steadily, and slowly lower the Q3 into the
trench, only to find ourselves a little shaken. Though seemingly
precarious, if not deadly, the car ensures that it is safe, along with
its passengers.
We rise above the trench and approach a climb.
Wait a minute! It appears easy from afar, but when you begin to drive
along its slope, you realise it’s a stubborn adversary. Some things are
just not what they appear to be! Varied surfaces
But
the same cannot be said about the car, with the Q3 just packing enough
or more punches, as it glides its way past one obstacle after another.
We pass through the steep climb uneventfully, and the sudden incline of
yet another steep climb makes us wary all over again.
The only
mantra that one ought to repeat here is to be maintain focused
acceleration and balanced speed as much as possible. Then comes the
‘Axle Twister’ obstacle, reminding us of the circus, where a daredevil
rides a bike or drives a car in a circular motion on the wall of a well.
We assume it to be easy, but soon realise it is the most
difficult obstacle yet. With a perfect convergence of ‘man and machine’,
the Q3, with us inside, manages to defy the odds and drive through
successfully, even as two wheels of the car are hoisted in the air.
The
obstacles offer a true sense of what off-roading might be, if not of
the most hostile conditions. But in the quattro-pumping Audi, it all
seems too easy. We also drive the Q5 and Q7 and the experience is all
the more exciting.
“The Q Drive gives people an opportunity not
only to experience the Audis but to experience them in a rugged terrain
making it more than ‘just another test drive’. This also provides us a
great platform to showcase the quattro technology as well as the various
other special features provided by the Q range of Audis,” said racing
driver Aditya Patel.
Comfort for the driver and safety of
everyone else inside the car is the hallmark of German engineering, and
Audi is a testament to that.
Umesh M Avvannavar, Jan 22, 2015, Bengaluru, dhns: Carl Zeiss, the 4.29 billion euros German
manufacturer of optical systems, industrial measurements and medical
devices, is planning to recruit 100 more employees this year across its
divisions in India, a top company executive said.
Talking
to Deccan Herald, Carl Zeiss (IMT) President and CEO Rainer Ohnheiser
said, “We currently have 600 employees in India. This year, we are
looking to add 100 more into the Zeiss family, across all divisions.” As
of September 30, 2014, the company has 24,817 employees worldwide.
Carl
Zeiss India opened its new campus and production facility at Electronic
City, Bengaluru in 2012. The Zeiss head office for India has 120,000 sq
ft of office space, a warehouse, and production facilities for
coordinate measuring machines (CMMs) from the Industrial Metrology
Business Group and prescription lenses from the Vision Care Business
Group.
The investment in a modern facility in India, one of the
fastest growing and important Rapidly Developing Economies (RDEs) of the
world, signifies Zeiss’ deep commitment to the Indian market, he said.
Zeiss
has recently begun exporting CMMs to the South-east Asian market from
the Bangalore plant. The CEO said the company hopes to grow its exports
along with the domestic market.
Ohnheiser said, “We have invested
in research and development (R&D) in India — CARIn (Centre for
Application and Research in India), the R&D centre of the Medical
Technology Business Group — and developed medical equipment tailored to
Indian market requirements. Zeiss places a lot of importance on R&D
and more than 10 per cent of our revenues is spent on it.”
With
its six business groups, Zeiss plays an active part in advancing
leading-edge technology and is a force in the world of optics and other
related fields with its solutions for industrial metrology, microscopy,
medical technology, vision care, consumer optics, and semiconductor
manufacturing technology.
“In ophthalmology, there is a 90 per
cent chance that a doctor in India would be using Zeiss equipment. We
also have new products that have been developed in India which we will
be launching globally soon,” the CEO said.
The Global IT Solution
Centre is the key application management and consulting partner for
Zeiss’ core business applications. The India team collaborates globally
and drives innovation via sustainable solutions.
“India is among
the top 10 geographies in revenues for us. Compared with some of the
BRICS countries, India is progressing very fast,” Ohnheiser said. “For
Zeiss, India is very important, especially in terms industrial
metrology.
Our customers worldwide are slowly moving into India
and we are here to support India. As India is one of the leading RDEs,
we do a lot to make the whole organisation aware of our focus on the
country.
Strategic investments such as these are only possible because we have a long-term plan,” he said.
“We
are very pleased with the development of our business in India and we
are confident that we will continue to grow rapidly. It is important to
maintain our high growth in the Indian market in order to sustain
continued investments.”
In fiscal year 2013-14, the company’s
global business group revenues can be broken up into Medical Technology
and Semiconductor Manufacturing Technology (1.047 billion euros each),
Vision Care (761 million euros), Microscopy (656 million euros) and
Consumer Optics (185 million euros), the CEO said.
Umesh M Avvannavar, Bengaluru, Jan 23, 2015, DHNS:
Bengaluru-based UCAM, the manufacturer of high
precision CNC Rotary Tables, Index Tables and Pallet Changing Systems
for CNC (computer numerical control) machining centres, is planning to
set up a new facility at Dobbaspet, with an investment of Rs 30 crore in
few months, a top executive said.
Talking to Deccan
Herald on the sidelines of IMTEX-2015 here on Thursday, UCAM Managing
Director Indradev Babu said, “We have set up a new facility with an
investment of Rs 30 crore at Dobbaspet with a built-in area of 60,000 sq
ft, which will help enhance production capacity as well as improve
production systems and quality.”
The machine shop is completely
temperature-controlled, and equipped with super precision machines,
besides quality control and test facilities.
“The products that
we manufacture are hitech sub-systems for machining centres. Machining
centres are mother machines which can produce parts for automotive,
aerospace, mould-making and general engineering industries,” Babu said.
“Our
business is focused on machine tool builders, as well as users of these
machines who would like to upgrade their existing capability. The
automotive sector is the biggest chunk of the customer segment, about 60
per cent. The remaining are aerospace, medical implants, power and
general engineering,” Babu added.
The company, which was set up
in 1986 at Jalahalli with a small unit, today employs 150 people with a
turnover of Rs 40 crore. Last year, the company’s turnover was Rs 36
crore.
UCAM holds 70 per cent of the domestic market, hence export is the key to UCAM’s growth.
Presently
UCAM exports 25 per cent of its annual turnover and it is targeting
exports to hit the 60 per cent mark in the next four years. The export
destinations include Germany, Italy, the UK, Poland, the US and Canada.
UCAM
has launched new business units Nimble Machines and Nimble Electric.
Nimble Machines produce high performance CNC Gear Hobber to meet high
performance requirements of customers in the domestic market.
At
the Dobbaspet facility, a hangar has been constructed exclusively for
building these machines. Meanwhile, Nimble Electric has a capability to
design and manufacture high tech torque motors competing with suppliers
from Europe.
UCAM has a subsidiary located in Germany to cater to
the European market by stocking and distributing products manufactured
in India.
UCAM has independent design and R&D departments.
UCAM’s in-house R&D facility is recognised by the Department of
Science and Industrial Research (DSIR), Government of India.
DH News Service
Umesh M Avvannavar, Bengaluru, Jan 24, 2015, DHNS:
Bengaluru-based Bharat Fritz Werner (BFW), a
manufacturer of machine tools, aims to double its turnover from the
present Rs 800 crore to Rs 1,600 crore in the next three years, a top
executive said.
Talking to Deccan Herald on the
sidelines of IMTEX 2015 here on Friday, BFW Chief Executive Officer Ravi
Raghavan said, “The targeted doubling of turnover would require
increase in infrastructure. The company has 100 acres of land available
in Bengaluru near Hosur for the purpose. We have set aside Rs 100 crore
to fuel our growth plans.”
BFW owns a subsidiary in Germany, a
manufacturer of computer numeric controlled (CNC) machine tools which
are used by the industry to produce automobiles, turbines, general
engineering products, medical implants, and aerospace components.
The
company aims to be among the top 20 machine tool manufacturers in the
world by 2020. Presently, BFW is ranked at 54 out of 250 firms
worldwide.
30,000-plus installations
“The company has
embarked upon massive grass-root level changes to achieve the goal. This
includes giving a fresh international focus to R&D and quality
control,” Raghavan said.
More than 30,000 BFW machines have been installed worldwide. BFW employs 800 professionals, out of which 700 are engineers.
The
manufacturing plant at Bengaluru is spread over 17 acres. The
investment in plant and machinery in India is approximately Rs 250 crore
and in Germany about Rs 100 crore. The company is adopting
international practices for assembling manufacturing and adopting
first-time right processes, which ensure the products are made without
need for rework.
BFW is focusing on improving productivity and making it easier for customers to do business using electronic channels.
BFW
is a market leader in prismatic machine tools (PMTs), which forms about
40 per cent of the installed machine tools in India. Companies such as
Honda, Toyota, Bharat Forge and Ashok Leyland use BFW machines. These
are also exported to a number of developed nations like Germany, Japan,
and Russia.
“The first bulk export of machine tools from India
was done by BFW in 1970. It was for about 200 machines. Gradually,
domestic demand took over and exports came down. The company is focusing
attention to increase exports to 15 per cent of the turnover in the
next year. Exports presently are at about 5 per cent,” Raghavan added.
It
has recently introduced horizontal turning centres (HTCs), a new area.
HTCs constitute about 60 per cent of machine tool market, and BFW is
confident of reaching out to many more customer segments and industries
with the new product line, he said.
Hrithik Kiran Bagade and Umesh M Avvannavar, Bengaluru, Jan 24, 2015:
German luxury automobile major Audi India has
expressed confidence that its plans for the swiftly growing Indian
luxury car market are on track, and aims to finish 2015 with
double-digit growth.
Audi, which has been selling its
cars in India since 2007, has successfully sold around 41,000 units so
far, across all segments. Last year, the car manufacturer crossed the
10,000-mark for the second time in a row by selling 10,851 cars.
“In
the 2014, the luxury car industry in India slowly trudged forward and
grew at 3 per cent, while we enjoyed a favourable growth of 9 per cent.
From a 31 per cent market share, we have progressed to around 34 per
cent,” Audi India Head Joe King told Deccan Herald.
“Our
four-pillared strategy of having the right product mix, dealership
network, robust service points and customer connect initiatives have
come a long way to develop our brand in India,” King said.
The
company is planning to launch 10 new models in the country this year,
across its different segments, apart from certain all-new models. “We
have had sizeable sales in our Q model range (SUVs) and also the A model
range (sedans),” he said.
Likewise, the company launched the new
Audi A3 Cabriolet convertible in Bengaluru on Friday, priced at Rs
43.83 lakh, claimed to be an industry first.
“We don’t expect the
car to be a game changer, but our young and diverse customer base,
backed by strong customer feedback, has ensured that the car has been
launched at the right time,” King added.
Audi is also
expanding its touchpoints, as it looks to penetrate deeper into the
market. Besides, new format dealerships will also push the Audi wagon in
the country.
The company opened its second 7,800-square feet
CBD (central business district) format showroom in the City — Audi
Bengaluru Central — the first having been opened at Delhi.
According
to Audi Bengaluru Central Chief Executive Officer K Subramaniam, “The
dealership is based on a global architectural concept with the typical
honeycomb facade, with a display area of eight cars. The idea of the CBD
format is to garner maximum visibility on high streets in big cities.
It is to offer an all-round customer experience.”
“Also we are
aiming for good growth in smaller towns and cities as well,” King said,
adding that new showrooms are coming up in Kolkata and Ranchi.
The
company currently has 61 dealer touchpoints (41 showrooms and 20
service centres) across India, and expects a growth of around 15 per
cent this year.
With a strong game plan for 2015, King said that
the company’s facility at Aurangabad, which made around 10,000 cars in a
single shift last year, is likely to integrate a double shift, going
forward, in order to accommodate the burgeoning demand for Audi cars.
DH News Service
Jyoti eyes the US and Asean market to gain larger share Rajkot-based Jyoti CNC Automation, one of the
leading CNC (computer numerical control) machine manufacturers, is
scouting for a new facility in South India with an investment of Rs 100
crore in the next two years, a top company executive said.
Talking
to Deccan Herald on the sidelines of IMTEX 2015 here on Saturday, Jyoti
CNC Automation Managing Director Parakram Jadeja said, “We are in the
process of setting up a new facility in South India for capacity
expansion, a new technology centre. For this, we will be investing Rs
100 crore in the next two years. The manufacturing plant will be spread
over 12 acres.”
Jadeja is upbeat about the new machine tool park
coming up near Bengaluru, an initiative of the machine tools
manufacturers’ association in partnership with the state government, for
which the Centre has already committed Rs 124 crore. “Once the new park
goes on stream, our first destination in the South will be Bengaluru.
It will help us to be closer to our suppliers and customers,” Jadeja
said.
Jyoti CNC Automation has three plants near Rajkot and two
units at Strasbourg (France). Till date, the company has invested Rs 350
crore in India, and about Rs 250 crore in Europe on plant and
machinery.
Jyoti CNC Automation employs 1,400 professionals, out
of which 200 are in France. In 2008, the company acquired France-based
Huron Graffenstaden.
To set up exports, the company has appointed
distributors globally. Currently, it exports close to 20 per cent of
its annual turnover, which is around Rs 760 crore. The company is
expecting to reach a turnover of Rs 900 crore this financial year.
After
tapping the European markets, Jyoti is targeting the US and Asean
market to gain larger share. Annually, Jyoti produces 2,100 machines.
About 10 new models get added to the portfolio every year. Three new models
The
company has launched three new models at IMTEX 2015 — Vertical Turret
Lathe, CNC Twin Spindle Turn Mill Centre with Y-axis, and CNC High Speed
Vertical Machining Centre. They will find users in the defence and
aerospace sectors, besides the automotive sector.
On acquisition
plans, Jadeja said even though the company would not be looking at
acquisitions for the next couple of years, it will look to forging
relationships in Japan. “Learning a new culture always helps one grow.
And Japan is one of the countries we would like to learn from. We expect
to learn a lot from Japan, just like we are constantly learning from
Europe,” Jadeja added.
****************************************
48. Machine Tool manufacturers urge bankers to lend aggressively
Jan 26, 2015, Bengaluru, dhns: Hit by a slowdown, rupee depreciation, and in a
bid to increase the order book, machine tool manufacturers are urging
bankers to lend aggressively.
The machine tool industry
is the mother industry of the manufacturing sector. The contribution of
the manufacturing industry to India’s GDP growth is just 16 per cent,
according to IMTMA (Indian Machine Tool Manufacturers’ Association)
President L Krishnan.
During the first half of 2014-15, machine
tool consumption grew by 20 per cent and production by 28 per cent.
Preliminary data suggest the sector has grown around 15 per cent in the
October–December quarter. “The last fiscal was a challenging one.
Recent
policy initiatives have had a positive impact and we have started
seeing an increase in order flows. IMTMA expects 2015 to be a promising
year for the machine tool industry,” Krishnan said.
Talking to
Deccan Herald, on the sidelines of IMTEX-2015 here on Sunday,
Rajkot-based Jyoti CNC Automation Managing Director Parakram Jadeja
said, “Bankers should be aggressive in approving loans. Our customers
are not getting finance easily. The delivery period of Public Sector
Banks (PSBs) has increased from three to six months.”
Jadeja
appreciated the speedy approvals by private banks and NBFCs (non-banking
financial companies). “Few private banks and NBFCs have taken
initiatives to lend aggressively… but their costs are higher.”
BFW
Chief Executive Officer Ravi Raghavan chipped in: “Entrepreneurs should
have easy access to finance. With no resources in hand an entrepreneur
approaches PSBs and if the bank delays a decision, the long supply chain
is wasted.” The growth of the manufacturing sector needs support from
banks, he said.
On the RBI’s recent decision to cut the repo
rate by 25 basis points (bps), Jadeja said, “The rate cut will help
boost confidence as banks and other lending institutions are likely to
pass on this reduction to customers by way of lower loan rates. This is
possibly the beginning of more such cuts during the remaining part of
the year.”
Raghavan hopes to see more rate cuts from RBI in the
forthcoming monetary policy. On the company’s order book, Raghavan said:
“There is lot of unpredictability in demand. Forecasting cycles of the
customer have really shortened. BFW grew in the first half from April to
September by about 30 per cent, but we are seeing a slowdown from
November.”
An industry expert said, “The information technology
(IT) sector gets funding in the millions of dollars from angel investors
and venture capitalists. Unfortunately, no one comes forward to invest
in machine tool companies. Development of low-end industries will create
a high-end ecosystem.”
Rising NPAs (non-performing assets) since the past few years have impacted bank interest income, the expert said.
PSB
State Bank of Mysore has opened 20 branches in Karnataka that are
exclusively focusing the MSME (Micro, Small and Medium Enterprises)
sector. An SBM official said, “Our bank is financing liberally to the
MSME sector. Last year, we saw 20 per cent loan growth. This financial
year till December, our exposure to the MSME sector grew at 20 per cent
year-on-year.”
On recovery, the official said that “MSME units
would sometimes face delays in realisation of booked debts and stocks
may pile up on lack of demand.” In order to help such MSME units, “We
are granting an additional standby credit of 15 per cent of existing
working capital limit to tide over temporary mismatches in cash flow. We
also help them by restructuring their liabilities.”
As per RBI
norms, banks won’t ask for any security for loans up to Rs 10 lakh to
the MSME segment. Moreover, SBM has decided not to seek any collateral
security for up to Rs 1 crore. Such loans are guaranteed by the Credit
Guarantee Trust Fund for MSMEs. The bank has also decided to bear the
cost of guarantee premium for loans up to Rs 50 lakh, the official
added.
SBM official said delays in loan processing might happen
if valuers take time to submit their report on the security offered by
borrowers. SBM has established specialised SME credit processing centres
to quickly sanction loans to small units.
Flagship firm to invest Rs 250 crore Bengaluru-based Ace Micromatic Group, one of
the largest manufacturers of CNC (computer numerical control) machines
in India, aims to be ranked among the top 10 global machine tool
manufacturers within the next three to five years, a top executive said.
Towards
this end, Ace Designers — the flagship company of the group — is
“investing Rs 250 crore for further capacity expansion in the next two
years in two phases through internal accruals and debt”, its Managing
Director Shrinivas G Shirgurkar told Deccan Herald on the sidelines of
IMTEX-2015 here on Monday.
The company in 2013 invested about Rs
100 crore and set up a foundry with Italian technology for captive
consumption at a 10-acre facility at Minnapura, located 27 km away from
Peenya. The facility has annual capacity to produce 12,000 tonnes of
castings, which is used by CNC machine manufacturers.
“The
production capacity at our three plants spread over 11 acres at the
Peenya Industrial Area is about 3,000 CNC machines. In addition, we are
building a capacity of 5,000 machines in the next two years at a 70-acre
space adjacent to the Minnapura facility. We have plans to increase
capacity to 10,000 machines by 2020,” he said. Ace Designers is all
geared up to deliver larger volumes to increase its sales in the
domestic market. The company has plans to widen its product offerings.
As a group, Ace Micromatic employs 2,500 professionals and produces a
third of all machine tools in the country. Ace Designers employs around
750.
Shirgurkar said, “The group is now ranked 54 out of 250
firms worldwide according to Gardner Business Media’s Machine Tools
Scoreboard. In next three to five years, we want to be ranked among the
global top 10.”
“The domestic as well as global market is very
competitive. Constant upgradation of technology is the key to meet the
needs of our international customers,” Shirgurkar said. “At present, I
can proudly say that 70 per cent of the automobiles in India have parts
turned in our machines,” Shirgurakar said. “About 10 per cent of our
machines are exported to nearly 20 countries. Our major markets are
China, Germany, Turkey, Thailand, and to certain extent Australia. We
have plans to increase the export share of our business from 10 per cent
to 25 per cent.”
The Group has 32 locations for sales, service,
and handholding in the domestic market, and two locations in Germany and
China. Ace Designers is targeting a turnover of Rs 500 crore this
fiscal compared with Rs 330 crore last year. The Ace Micromatic Group
turnover is expected to touch Rs 1,200 crore this fiscal compared with
Rs 836 crore last year.
Umesh M Avvannavar, Bengaluru, Jan 29, 2015, DHNS:
They have the required payload to join assembly lines In a bid to end dependence on foreign robots,
TAL Manufacturing Solutions, a 100 per cent subsidiary of auto major
Tata Motors, is all set to launch its domestically developed robots for
the Indian market, a top executive said.
Talking to
Deccan Herald on the sidelines of IMTEX-2015 here on Wednesday, TAL
Manufacturing Solutions Head, Machine Tool Division (Design,
Standardisation, Lean Manufacturing, Applications) Kaustabh D Samak
said, “TAL is now all set to launch its fully indigenously developed
(Made in India) cost-effective articulated robot. It is really a proud
moment for all of us.” Articulated robots are those with rotary joints.
“Robots are the need of the day. As of now, India imports all its robots from different parts of the world,” he said.
TAL
displayed cost-effective robots ranging from 0.5-kg to 10-kg payload
capacity with five and six axes at IMTEX-2105. The commercial launch of
all robotic products will be kicked off in the coming financial year.
“India has a huge market for robots in the automobile sector. MSMEs will
be our target customers,” Samak added. The 0.5 kg to 10 kg segment has
maximum demand in the Indian market.
About 80 per cent of the
components in this segment are below the 10-kg payload where the robot
can take up mass production functions like picking and placing, gluing,
handling and assembling, welding, palletising, packaging, machine
tending, and training. When asked about whether robots will cut down
jobs, TAL Robotic
Engineer Swati Daphal said, “Robots will be very effective in hazardous fields.
Moreover,
there is an acute shortage of skilled manpower in manufacturing. The
intelligence standards of the human resource can be increased with help
of robots.”
TAL is focusing on the domestic market for the first
year. Based on demand, it will ramp up production. Samak said SAARC
countries will be the first export destination for the robots.
When
asked about competition and marketing strategy, the TAL team said, “We
are ready for competition and will share the marketing strategy at the
time of launch.”
Umesh M Avvannavar, Bengaluru, Jan 29, 2015, DHNS: Andreas STIHL, the €2.8-billion leading German
manufacturer of chainsaws and power tools for professional forestry and
agriculture, has said it sees great potential in India for growth near
plantations owing to the huge shortage of labour.
Talking
to Deccan Herald, Andreas STIHL Board member and Head (Marketing and
Sales) Norbert Pick said, “We feel there is great potential for growth
in areas where plantations are located as there is a huge shortage of
labour.
With few available hands, products like STIHL brush
cutters can help in faster clearances and better turnaround time for
planters.”
“Mechanisation is taking place in India at a rapid
pace. Our experience so far is that there is initial resistance in using
power tools in traditional areas. But once the technology becomes
familiar, users adapt to them so much that they are unable to function
without our tools,” Pick said.
On technology adoption in India,
Pick said, “India is not yet fully mechanised to use power tools such as
chainsaws. But we do have other products that can be used in
agriculture, horticulture, and plantations. Our products are used in
apple orchards as well as coffee estates.” Andreas STIHL has been
operating in India since 2006. The Rs 85-crore company, a wholly-owned
Indian subsidiary, would be completing ten years in India this year.
It
has been registering a compounded annual growth rate (CAGR) of 25 per
cent for the last five years. In 2015-16, it is confident of a 30 per
cent growth, Pick said.
Some 60 per cent of the company’s orders
are from the agriculture sector. It markets 40 kinds of equipment for
agriculture, forestry, garden and landscape maintenance, ranging from
brush-cutters, chainsaws and mist-blowers.
“India is a very
important growth market for the STIHL group and the management is
committed to invest more in terms of presence, service and new products
into this market,’’ says Parind Prabhudesai, Managing Director, Andreas
STIHL India.
Pick said, “We have a strong local presence and a
very good dealer network. Our plus point is being located close to the
market.” He cited Gonikoppal, a coffee-growing town in Karnataka, as an
example of the company’s close interaction with end-users.
New products
On
new products, Pick said, “We are focusing on battery-driven products
for urban areas to curb higher noise levels. In 2009, we introduced a
battery-driven hedge trimmer which is totally noiseless and very
popular.
“We are also striving to introduce same-sized battery
packs for a family of products. More products will be launched in a
phased manner. High pressure cleaners, paddy-weeders and a few
harvesters are already planned for launch this year.”
The company
has a robust distribution network with 120 importers selling STIHL’s
brands in 160 countries throughout the world. It has 34 international
sales subsidiaries and 40,000 servicing dealers. In India, Andreas STIHL
employs 45 personnel and is looking at expanding across all regions.
Approximately,
14,000 people work for Andreas STIHL around the world. Currently, it
owns over 2,000 patents or patent applications.
Adds new bancassurance ally; to recruit 300 by March
In a bid to increase fee-based income,
Karur-based private sector lender Lakshmi Vilas Bank has signed with Max
Life insurance last month, a top executive said.
Talking
to Deccan Herald, here on Monday, Lakshmi Vilas Bank MD and CEO Rakesh
Sharma said, “To increase our fee-based income, we have tied up with Max
Life insurance. Along with bancassurance products of other insurers,
Max Life insurance products will be sold throughout branches across
India. The bank is targeting 5 per cent in bancassurance out of its
total fee-based income.”
Bancassurance is a French term referring to the selling of insurance through a bank’s established distribution channels.
The
bank is in final stages of tying up with a leading credit card issuing
bank in the country for a co-branded credit card on the VISA platform.
“Right now, we don’t have credit cards. Credit cards have great demand,
but is an expensive proposition. It is a better way of doing business by
tying up with one of the country’s large lenders,” Sharma added.
For its planned general insurance bancassurance, the bank is in talks with potential partners and is awaiting IRDA approval.
Sharma
was in Bengaluru to inaugurate the bank’s 400th branch and 750th ATM at
Bommanahalli. He also launched LVB Crown Services for HNIs (high
networth individuals).
The products enable customers to avail
services of dedicated relationship managers, VISA Platinum debit card,
free personal accidental insurance of Rs 25 lakh and 25 per cent
discount on other facilities like locker rentals. Out of 1.2 million LVB
customers, the bank is targeting 10 per cent HNI customers.
LVB
also offers free family banking accounts namely Lakshmi Mahila and
Lakshmi Youth accounts, besides providing higher daily ATM withdrawal
limits.
The bank aims to open five more Crown centres by March and 20 by the next financial year.
LVB
came into existence in 1926 and has a national presence serving over
1.2 million customers through its 400 branches, seven extension counters
and 750 ATMs, totaling close to 1,100 outlets in 16 states and the
Union Territory of Pondicherry.
In Karnataka, LVB has 38
branches, out of which 18 are in Bengaluru. The bank has a headcount of
3,300 and it recently recruited 120 officers, and by March, 300 clerks
will be hired.
Lakshmi Vilas Bank’s profit surged over fourfold
to Rs 32.5 crore for the quarter-ended December 2014 compared with Rs
7.4 crore in the year-ago period.
The growth in profit was
largely led by higher other income and lower provisions despite higher
tax outflow of Rs 9 crore (against nil in Q3FY14) while asset quality
also improved significantly.
We find getting our rightful dues from insurers a long-winded process, leading to undue stress on our financials.
National Bulk Handling
Corporation (NBHC), a private sector warehousing company owned by the
India Value Fund, has expertise in managing over 190 commodities,
including grains, cash crops such as cotton, and various
non-agricultural commodities.
NBHC has managed about Rs
66,000 crore worth of assets for 44 banks, enabling post-harvest farm
credit of about Rs 45,000 crore with dedicated focus on the farmer.
In quantity terms, the company has managed about 27 million tonnes for
banks alone and carried out preventive treatment and fumigation for
about 42 million tonnes of commodities.
NBHC Managing Director and
CEO Anil K Choudhary tells Deccan Herald’s Umesh M Avvannavar about how
the company has brought about a qualitative difference for farmers.
What is warehouse receipt?
Warehouse
receipt is an instrument issued by a warehouse which attests to the
receipt of goods into their custody. It normally specifies the quality,
quantity, and the value.
How is it financed?
Traditionally,
banks had lots of concerns about financing against agriculture
commodities. The modus used by banks for whatever little financing did
was to fix a limit on the warehouse/cold storage and then fund against
the warehouse receipt/cold storage bond issued by them.
The risk
perception was very high for banks. Particularly, they worried about the
quality and quantity assessment, and by extension, the maintenance of
quality/quantity during the loan period.
They were also
concerned about timely information on price movements. Another area of
concern was disposing of the commodity in case of default. With the
advent of companies like NBHC, bank concerns in all these areas were
effectively addressed.
The way it works is that a farmer, trader,
processor etc., deposits the goods in warehouses managed by NBHC/cold
storages. NBHC then issues warehouse receipts which go directly to the
bank after the necessary security documentation.
On receipt of
this, the bank extends loan to the respective depositor. The loans are
typically for 9-12 months and a major part of such lending qualify as
priority sector lending. The interest rate varies from 10.25 per cent to
12.5 per cent.
How many states and commodities do NBHC cover?
We
have a very extensive reach. We have worked in 23 states and have
capabilities in over 190 Commodities. When we started business with
banks in 2006, they were ready to fund only 15 to 16 agricultural
commodities which were traded on commodity future exchanges.
But
after benefiting from our services continuously without impairment or
loss, banks are now ready to fund all agricultural commodities taken by
us.
What are your strengths?
Our biggest
strength is our integrated platform. NBHC is perhaps the only company
with a huge network with its own quality laboratories, commodity care,
and pest management capabilities across the country.
But above
all, the integrity and efficiency with which NBHC has executed all
assignments successfully in eight to nine years has brought
unprecedented liquidity against agricultural commodities on much better
terms to all the participants of the farm ecosystem.
NBHC has
demarcated responsibilities of different sets of people at the warehouse
level to ensure complete integrity in warehouse receipt operations. We
also have an independent audit and surveillance system which regularly
does surprise audits of warehouse receipts.
How does a farmer benefit by storing his commodities with NBHC?
In
India, perhaps one of the biggest challenges faced by a farmer is
getting remunerative prices. Though the government runs minimum support
price (MSP) programmes in several commodities, effectively only in two
commodities, paddy and wheat, are there any substantial MSP activity.
But
the MSP activity in these two commodities are also limited to a few
states. Further, market linkages available to farmers are not efficient.
All of these result in the distress sale of farm produce, leading to an
average farmer realising just about 30-40 per cent of the value of his
produce.
An effective solution for this involves providing
farmers with the opportunity to time their sales. NBHC plays a role in
that effort as goods deposited with us by farmers get liquidity on very
easy terms from banks and that gives farmers the leeway to hold on to
their commodities and sell them at an opportune time when prices are
favourable.
What is your reach in Karnataka. How many farmers are using your service?
In
Karnataka, we have three offices located at Belagavi, Shivamogga and
Raichur. We have been able to manage agricultural commodities worth over
Rs 3,500 crore against which banks have lent over Rs 2,600 crore over a
period of seven to eight years.
How many banks are financing your receipts and expansion plans?
Canara
Bank has become the 45th banking partner of NBHC and is expected to
help us tap additional geographies. We have added one more cooperative
bank in Maharashtra. We want to take up collateral management partners
to 50 by March 2015.
We have been recently accredited by NCDEX
as their warehouse service provider. We have also tied up with NEML
(National Electronic Market), a physical and spot delivery platform.
We,
therefore, believe that we are all set to effectively serve the entire
farm commodity ecosystem on the post-harvest side. We are also expanding
our supply chain services through private sector entities.
What are the challenges you face?
The
business is very operation-intensive. Maintaining integrity and
fidelity of operations at the warehouse level remains a big challenge.
The non-availability of trained manpower to manage operations at the
ground level is another hurdle.
While we cover our risk through
robust operational processes, audit and surveillance, in the event of
mishaps we have to take recourse to insurance. We find getting our
rightful dues from insurance companies a long-winded process, leading to
undue stress on our financials.
Let us understand and appreciate
that the business is very low margin and risk mitigation tools like
insurance does not work effectively. So further growth in the sector
will be constrained.
Shreyas N and Umesh M Avvannavar, Feb 19, 2015, DHNS
Brawny beast: The new 5MT320 gearbox helps you shift gears effortlessly for a fatigue-free driving experience
Homegrown auto major Mahindra & Mahindra
(M&M) is leaving no stone unturned when it combats competition from
formidable rivals in the burgeoning Indian SUV (Sports Utility Vehicle)
market.
The company has added a new face to one of the
most famous members of its stable, launching an upgraded Scorpio.
Mahindra had launched the Scorpio in 2002, garnering over 4.5 lakh
customers in India and 75,000 patrons overseas, taking on markets in the
SAARC, South Africa, Latin America and Australia.
The company
has managed to sell an average of 50,000 Scorpios each year despite the
stiff competition in the segment. Mahindra has taken people in India to
the remotest parts of the country.
From the mountainous Siachen
glacier to the backwaters of Kuttanad (Kerala), one thing you will
surely find is a Mahindra, toiling its diesel motor, racing up and down
the hills, estates, run-down roads and bridges, and on green pastures,
without complaining.
On a recent trip to a coffee estate in
Coorg, we heard a proud father and son duo, who ran the estate, tell us
that they just bought their 18th Mahindra in the family. Not a car, but
an 18th Mahindra! Such is the charm and legacy of the dear Mahindra.
It
was only in the 90s, that they decided to build an affordable
indigenous SUV. Anand Mahindra planned carefully and appointed Pawan
Goenka to head the research and development department. Goenka brought
all his pioneering effort from General Motors, USA, where he had made a
name for himself for 14 years. In 2002, the brawny Scorpio was born. Scorpio reloaded
In September
2014, Mahindra launched the new generation Scorpio with refreshing
contours reflecting in each part of the car. With the new refurbished
beast already in the market, all that Mahindra had to do was add beauty
to the Scorpio.
In doing so, the company addressed common issues
that owners had — it was boxy, the instrument cluster and dashboard
were rather dull, and the suspension was rigid. We wanted to push the
car to the limit, i.e, try to take on a curve at 120-plus kmph, which we
wouldn’t dare do in the old Scorpio, go hard and fast on bumps and
potholes without passengers jumping off their seats, and park it like
you would a hatchback.
Guess what, we could do all that in style
and finesse. The new Scorpio gets anti-roll bars in the front which
minimises the body rolls. Interestingly, because of the new
double-wishbone suspension setup, with independent and multi-link coil
springs at the front and the rear, we were confident of taking on curves
at triple-digit speeds.
So it was to be seen if the new Scorpio
is really new, or is it just ‘old wine in a new bottle’. We tested the
new Scorpio on a bright sunny Sunday. The diamond-white Scorpio has an
appealing touch.
The car, though massive, was quite inviting at
first glance. With a contemporary, more aggressive look, the new Scorpio
is a different breed altogether.
A few exterior features that
make the car stand out are dual-projector headlamps, and static bending
technology to light up those hairpin bends at every turn.
Striking
LED eyebrows, signature grille with premium chrome accents, and the new
generation Scorpio’s grille comes with premium chrome accents, giving
it an imposing road presence.
Plush on the inside
A
brand-new dual tone dashboard, gives the interior a fresh premium coat.
Luxurious blue-grey interiors, featuring a futuristic instrument
cluster with a 3D effect design, are stunningly illuminated, and display
vital information like gear position, trip meter, odometer, fuel and
temperature.
The steering impressed us the most. It has been
borrowed from the XUV 500 with buttons controlling the audio, phone
connectivity, and cruise control. Also to mention, these buttons are
ergonomically positioned and do not ache your fingers while operating,
unlike in the old Scorpio.
Turn on the ignition and the engine
makes you feel that you’re in control. In order to exit Bengaluru, with
an idea of driving to Mysuru, we decided to take short cuts, and yes,
driving a big machine like the Scorpio through the city’s narrow
by-lanes, is challenging, and the Scorpio has already begun scoring.
Full
marks to the new Scorpio’s power steering which is smooth and helps to
easily manoeuvre the car without hassle. High cushioning and greater
shock absorption enable a smooth ride even on uneven roads.
The
much-improved turning radius of 5.4 metres enables easy negotiation even
in the most congested places.The highway encouraged testing the
Scorpio’s raw power as we decided to push the vehicle as much as we
could.
Even though the 150-km road lay dotted with few humps and
blemishes, the gear-box and lever are so smooth that you don’t feel
tired to change every now and then.
The new 5MT320 gearbox helps
you shift gears effortlessly for a fatigue-free driving experience. The
combination of power band at lower speeds and at higher rpm is a
pleasure. We were, in fact, driving in third and fourth gear at speeds
as low as 35 kmph without it throwing tantrums and asking for gear
shifts.
The car can cruise at higher speeds, though the new
Scorpio cries for a sixth gear.The new Scorpio gets the same time-tested
2.2 litre mHawk turbo diesel engine which produces 120bhp and churns
out 280Nm of torque. And you could pull the second and third gear to
maximum revs all day long, just to hear the turbo squeal.
The
company has invested Rs 150 crore in the development of the new
generation flagship SUV, the Scorpio and over Rs 100 crore on building a
new chassis. Mahindra’s new platform will be embraced in future
Mahindra models. There is also rumour that a petrol SUV is in the
offering on this platform (fingers crossed).
The new Scorpio is
available in variants like the S2 (with M2diCR engine); S4, S4+, S6,
S6+, S8 and S10 (all powered by the 2.2l mHawk engine). It will be
available in multiple-seating configurations allowing owners to choose
from seven-, eight-, and nine-seater options to match their needs.
The
new Scorpio variants are priced in the Rs 8.28 lakh to Rs 12.29 lakh
(ex-showroom Bengaluru) range. It is also available in a 4x4 option. The
shift-on-fly four-wheel drive gives you the freedom of driving the
vehicle in any kind of terrain at Rs 13.45 lakh (ex-showroom Bengaluru).
According to ARAI the mileage of the new Scorpio is around 15.4 kmpl.
Kicks off PoCs; hopes to realise $1.5 million in revenues
Singapore-headquartered Infotrack Telematics, a logistics
tracking solution provider majority-owned by Japanese mapping software
company Zenrin DataCom, is in talks with major eCommerce players to kick
off a new vertical, a top executive said.
Talking to
Deccan Herald on Saturday, InfoTrack Telematics Managing Director C K
Ramakanth said, “InfoTrack Telematics has customers across seven
verticals — taxi and car rental, logistics solutions, school bus
transportation, employee transportation, ambulance service (108 in
Odisha/Punjab and 1298 in Kerala), ready-mix concrete, and ATM cash
vans.”
“Today eCommerce is growing exponentially and it is the
right time to tap this segment to generate revenues of around $1
million-$1.5 million for 2015. We are doing PoCs (proof of concepts)
with major eCommerce players to finetune the technology to suit their
businesses. Normally a PoC takes around three months and upon successful
completion, a three-year service agreement is signed,” Ramakanth said.
Infotrack
is a 14-year-old company founded in Singapore with the India office
commencing in 2008. In 2013, Tokyo- headquartered Zenrin DataCom
acquired 63 per cent of InfoTrack.
InfoTrack has provided
solutions in the radio taxi segment for companies like Meru Cabs, Mega
Cabs, Sky Cabs, Wings Cabs and others. It is in the process of executing
a solution for a taxi company in Myanmar. The first phase of the
project is covering around 200 cabs, which is extendable up to 500 by
the end of the year.
The company is providing technology
solutions to more than 20 logistics companies, including GATI, India
Travel House (ITH), and others. It hopes to close this financial year
with Rs 10 crore in revenues. He added, “There is tremendous awareness
and necessity of these GPS-based solutions in the public transport
domain, due to a few unfortunate incidents in the past which have made
the solutions a “necessity to have” and no longer just “nice to have”.
Ramakanth
said, “To illustrate, in a school bus transportation solution we
provide advance information to parents about the arrival of the fleet
with accurate ETA (estimated time of arrival) which helps parents to
reach the stop just in time, thus avoiding unnecessary waiting.”
The chief Executive Officer of the
nearly Rs 600-crore MTR Foods, Sanjay Sharma, speaks of the company’s
strategies and growth plans in the coming years in an email interaction
with Deccan Herald’s Umesh M Avvannavar and Hrithik Kiran Bagade.
How has the journey of MTR been so far? What were the challenges and accomplishments?
In
2007, Orkla, a Norwegian conglomerate, took over MTR Foods. Post the
acquisition, we took on the challenge to capitalise on the immense brand
strength that MTR already had. We undertook two fronts — externally
with the brand and availability of our products; and internally with
changing the organisational ethos from an owner-led company to a more
professional, people-led organisation.
Externally, we changed our
packaging to reflect our new identity and a new vision was drafted —
“To be an indispensable companion in every kitchen to help create
authentic and delicious Indian Food.”
We also increased our
advertising spends and the frequency of our advertising on a national
level. We introduced new and innovative formats like the multi-grain
dosa, snacks and RTE cups over the years. We also strengthened our
distribution and increased geographical reach by 300 per cent, reaching
over two lakh outlets across India.
Internally, we changed the
ethos of the organisation from being an owner-led company to being a
people-oriented inclusive company.
We constructed a robust
training schedule and have spent nearly 55,000 manhours in training till
date. We now have a flat structure, variable pay, and a
cross-functional working culture.
What is the company’s
turnover for last year? Please give a brief about the company’s
investments till date, and any more in the future. Towards what
operations/activities will the investments be aimed?
Since acquisition we have had a strong, successful growth with a CAGR of 20 per cent.
Last
year was a successful one for MTR Foods with us tripling our turnover
since acquisition to close at near Rs 600 crore. In the last six years,
we have invested almost Rs 150 crore on capacity enhancement, food
safety norms, employee safety and hygiene, Information Technology (IT),
and infrastructure.
We will continue to spend on research and development (R&D) as a major focus in the coming years.
Any innovations which you can share with us?
At
MTR Foods we currently invest a lot in R&D, both at our in-house
R&D centre and a separate wing called the Center of Excellence that
focuses on cuisine studies and bringing authentic Indian food in a
packaged format.
Today’s consumers are losing knowledge of
preparing traditional Indian food. It is also perceived to be a
time-consuming affair.
Our constant endeavour is to bring
Indian food back in the consumers mind and for that we are reinventing
certain categories and introducing new formats.
We conduct
in-depth customer research to understand and customise each recipe to
appeal to the regional palettes. Our sambar range is testimony to this.
We
understood that the taste of sambar changes every few kilometres in the
southern states and we spent days with our consumers in their houses
understanding exactly what a homemaker wants in her sambar before
introducing each new variant.
Last year, we launched our single
serve sweet packs that provide indulgence on the go. Hygienically
prepared and packed in micro-waveable, reusable cups, our single serve
packs of two Gulab Jamuns or two Rasogullas have already become
extremely popular and we have taken the range nationally now.
The
RTE Poha that we also launched last year is another tasty surprise from
MTR at the breakfast table. We also introduced our extremely popular
multigrain breakfast mix range a few years back. We are also
experimenting with frozen foods in the export markets.
Give an overview of the industry in which MTR operates. What is MTR’s share in various categories?
MTR
is currently the leader in various categories nationally, specifically
ready-to-eat currys, breakfast, and dessert mixes. In masalas, we lead
in Karnataka with a 31 per cent market share and have an 18 per cent
market share in Andhra Pradesh.
Who is MTR’s main consumer now? Does it differ for various products and according to geographies?
Though
we look and cater to a cross section of consumers across our
categories, our main target consumers are women. The homemaker of today
is no longer in the background; she is a prominent family member and
considers providing her family with a joyful, stress-free life, her
primary motivation. However, she is also looking at spending less time
in the kitchen and more quality time with her family.
She is
also expected to serve food which is as good as her
mother’s/grandmother’s. In the process, we discovered an important role
that MTR should play in the consumer’s life — of being a friend in the
kitchen by providing authentic Indian food in an easy-to-make modern
format.
How would you describe the company’s product spread. Which products/product categories contribute the most revenues to MTR?
Ready
mixes form a large part of our portfolio and consist of breakfast
mixes, sweet mixes, snack and meal mixes. The other large part of our
portfolio is pure spices and masalas which are mostly focused on the
southern states.
The ready-to-eat category with north Indian
curries, meal combos, traditional Indian snacks (currently distributed
only in Karnataka) and sweets — tins and portion packs — are the third
component. Other than these we also have vermicelli, health drinks,
pickles and papads in our portfolio.
Please share few details about the production facilities of the company.
Our
Bangalore plant can manufacture close to 50,000 tonnes. All MTR
products are manufactured in a state-of-the-art, ISO 22000 certified
factory under a completely closed environment.
MTR Foods has
also met the stringent internal requirements of Orkla Food Safety
Standards which are based on BRC standards and MTR complies with US FDA
as well as Canada FDA requirements for foods.
We are investing
heavily in our manufacturing facilities. We are building new plants and
buying machinery even as we speak. Currently, we have seven units for
our categories — spices and masalas, instant mixes that produce
breakfast mixes, sweet mixes and health drink mixes, vermicelli unit,
badam drink unit, snacks unit and the RTE unit, along with our own
packaging unit.
Which countries contribute to majority of the company’s export market? Is there a trend to be noticed here?
Our
export strategy is twofold. We have recently strengthened our presence
in the 15 countries we were already present with the help of
advertising.
We have also expanded our presence in seven other countries in the Middle East and Africa recently.
Our
products are now present in kitchens and dining tables in 22 countries
like the US, the UK, Australia, New Zealand, Japan, and Hong Kong.
What are your expansion and growth plans?
We
achieved a major milestone last year when we crossed a turnover of Rs
500 crore and we aim to maintain a CAGR of 20 per cent over the next few
years. We are currently one of the fastest growing players in the
industry and our expansion plans are focused on maintaining this growth
trajectory.
'Our competition is not with RuPay' Global payment services company MasterCard on Wednesday called
for the Prime Minister Jan Dhan Yojana (PMJDY) integrating other
players, including itself, for rolling out the latter’s schemes
currently, PMJDY is only being handled through RuPay.
Talking
to Deccan Herald, MasterCard Division President (South Asia) and
Country Corporate Officer (India) Ari Sarker expressed dissatisfaction
towards the Government of India’s move to go with RuPay cards for the
roll out of Prime Minister Jan Dhan Yojana.
The government
should have allowed all payment gateways like MasterCard and Visa, among
others, he said, adding that his company had taken up the matter with
the government to open it for all, but to no avail.
“Our
competition is not with RuPay... but it is with cash. The card usage is
set to grow further as more people are brought under banking services
through the Jan Dhan Yojana. Our aim is to support the government’s
vision which is paperless economy,” Sarker said.
Meanwhile,
MasterCard has set up a technology centre in Pune to develop products
for the global customers in the banking and financial services and is
planning to add 500 more headcount.
“The company has invested
$250million, including three acquisitions made last year. The company,
which has a similar facility in Vadodara, Gujarat, plans to take the
total headcount of its technology operations to 1,500 people by the end
of this year,” Sarker said.
India currently represents about 10 per cent of MasterCard’s global workforce across various business units.
MasterCard
had acquired Vadodara-based C-SAM, and Pune- based ECS last year, which
helped it set up development and processing expertise in India.
“There
is a significant increase in cross-border frauds in the banking
industry which is a big security issue in banking transactions. We are
developing products to deal with these issues through our technology
centres,” Sarker added.
An average 11,000 attacks take place to
breach the MasterCard security firewall everyday. “The two facilities
represent our largest Tech Hub outside of the US.
These centres play a
key role in driving development of cutting-edge payment technologies
aimed at enabling a cashless world,” Sarker said.
MasterCard has over 180 million customers in India and is growing 20 per cent annually.
The machine tool manufacturers on Saturday expressed their happiness over proposals made in the Union Budget.
Talking
to Deccan Herald, L Krishnan, president, Indian Machine Tool
Manufacturers Association (IMTMA) said: “The Budget has laid out road
map which was pending for a long-time. Measures like goods and services
tax (GST), tax structure were long overdue.
Reduction in corporate tax from 30 per cent to 25 per cent is a very bold move.”
In
his Budget speech, Finance Minster Arun Jaitley said that India has now
embarked on game changing reforms like GST which will put in place a
state-of-the art indirect tax system by 1st April 2016.
“The
‘Make in India’ campaign initiated by the Government of India can prove
to be a significant game changer for the country. It can potentially
accelerate manufacturing in India and will encourage Indian
entrepreneurs. This will lead to higher level of investment, higher
growth and more jobs will be created,” Krishnan said.
The Budget
also provided for increased funding of Rs 70,000 crore for
infrastructure as also higher allocation for social sector schemes like
MNREGA, which had also been welcomed. “Any public expenditure on
infrastructure will kick-start domestic manufacturing growth,” Krishnan
said.
The market size of metal working machines in India during
2013-14 was about Rs 8,000 crore out of which 81 per cent belonged to
metal cutting machines.
Bharat Fritz Werner CEO Ravi Raghavan said:
“Priority for infrastructure and GST has been clearly spelled out which
will further boost the manufacturing industry.”
RBI Chair
Professor of Economics, IIMB, Charan Singh said, “To encourage Make in
India, it is necessary to provide impetus to small units. To provide
funds to them and ensure regular availability of financial resources,
the government measures will encourage MSMEs to set up business, as most
banks are reluctant to lend to MSMEs.”
Ace Designers Managing
Director Shrinivas G Shirgurkar said, “Generally growth oriented in the
medium term, but in the short term doubtful about the growth for
industry.”
We are much more efficient in running ATMs than
banks. If banks run their own ATMs, it will cost them more than the Rs
15 per transaction we get paid.
White Label ATM (WLA) players see the Reserve
Bank of India’s (RBI) recent move kicking off the application process
for small finance banks and payment banks as a big opportunity. A WLA is
not owned by a bank but by a private service provider.
WLAs
were introduced to increase the network of these machines in semi-urban
and rural areas. In an interaction with Deccan Herald’s Umesh M
Avvannavar, BTI Payments MD and CEO K Srinivas shares the future of WLA
in India. Please give a brief on BTI Payments.
BTI
Payments was earlier known as Banktech India. Banktech is an
Australia-based private company which is into setting up White Label
ATMs for the last 12 to 15 years under the Cashnet brand. After some
2,500 installations, they came to India when they started looking out of
Australia for better opportunities. At that time, RBI was formulating
the guidelines for WLAs. RBI finally announced the guidelines in early
2013.
One of the conditions that RBI raised was that operators
had to have a net worth of 100 crore. That’s when Banktech also felt
they should get an Indian partner. So they roped in ICICI Ventures as a
minority partner. We had to rename ourselves as BTI Payments as Banktech
was a bank and RBI did not want bank ownership of WLAs.
What options did RBI offer to set up WLAs?
RBI
has given about three options for setting up WLAs. Option I: Minimum
commitment of 50,000 ATMs in three years. Under this scheme, RBI said
that for every ATM which WLAs put up in tier-III, IV, V, and VI towns,
they are allowed to put up one ATM in tier-I and tier-II towns.
Option
II: To roll out 15,000 ATMs in three years. For every two ATMs which
WLAs put up in smaller towns, they are allowed to put up one ATM in
large towns.
Option III: For every three ATMs which WLAs put up
in smaller towns (tier-III, IV, V, and VI), they are allowed to put up
one ATM in a larger town. But minimum commitment is 9,000 ATMs in three
years. BTI Payments has opted for the scheme of 9,000 ATMs. Most WLA
operators, save for one, have opted for the same scheme. When did your approval come through?
BTI
Payments got the go-ahead from RBI around February 2014. We have grown
very fast from then onwards. We used the first 100 days to understand
what would work by setting up 100 ATMs under different models. After
setting up ATMs in big towns like Bengaluru and Chennai, we opened in
district headquarter towns like Tumkuru, Salem, etc. and then drilled
down into blocks, tehsils, and villages. We installed 10 ATMs in each
category. Also, we wanted to understand the performance of ATMs put up
on streets versus those installed inside shops.
Once we found we
had learned from our mistakes, we started ramping up. We roll out
almost 200 ATMs every month. We are now about 1,100 ATM-strong. We
started with Karnataka, then headed to Tamil Nadu, Kerala, Andhra
Pradesh, Uttar Pradesh, Maharashtra, Bihar, and Gujarat.
Out of
the 1,100 ATMs that we currently have, almost 85 per cent of them are in
tier-III, IV, V, and VI towns. As per the licence conditions, BTI can
install close to 30 per cent ATMs in bigger towns. But we quickly learnt
that the game plan for us is to put up ATMs in the towns where there
are no ATMs at all, or where ATMs are mismanaged. For us the real game
is to cater to those opening new accounts under the Prime Minister’s
Jan Dhan Yojna.
Even though technically we could have put up
more ATMs in cities and larger towns, we decided not to do that. Tier-VI
can be a village with 5,000 people. By and large there is familiarity,
awareness, and the need for ATMs, just as in large towns. Today BTI
Payments employs around 100 people.
How many BTI ATMs are there in Karnataka?
Karnataka
should have approximately 200-plus of our WLAs, with 10 of them in
Bengaluru. Tamil Nadu has around 500 and Andhra Pradesh should have
around 200-plus. Kerala would have around 100-plus. Uttar Pradesh would
have around 100 since we started installing there from last month. In
Maharashtra, we just started and have around 25-30.
In Gujarat,
BTI is operating under a different model with milk societies. The
farmers sell their milk to the society and receive cash every 10 days.
BTI Payments is working with the banks to open bank accounts for
farmers. The farmers then start getting money credited into their
accounts. When they need cash, they can go to one of our ATMs located in
the society or village premises and withdraw cash. Holders of any bank
accounts can withdraw money from our India1 ATMs.
How many months does it take for an ATM to achieve breakeven?
Installing
an ATM comes with a cost and the company needs to break even as
revenues come in from the volume of transactions. It costs around Rs 5
lakh to install an ATM. That includes the cost of the machine, civil
works, establishing connectivity through V-Sat terminal, installation
of surveillance cameras, lighting, etc.
It also costs around Rs
25,000 – Rs 30,000 monthly to run an ATM after making allowances for
rent, power, cash transportation costs, monitoring costs, surveillance
costs, etc. We need 90 transactions every day per ATM for a breakeven.
BTI Payments expects to break even at a margin level anywhere within
8-10 months.
How does one identify a White Label ATM?
WLAs
are not bank branded. Besides BTI, players include Prizm, and Tata.
Prizm’s WLA is known as Moneyspot, ours is known as India1 ATM, and the
Tata’s is known as Indicash.
What are your plans?
Our
mandate is to roll out 9,000 ATMs. First year target was 1,000 ATMs
before March 2015. We completed the target two months in advance by
January 2015. We will end this financial year with 1,400 ATM
installations by March. By March 2016, we would take that number to
4,000, and by 2017, we would have done 9,000.
How do you set up a WLA?
Take
a small village with a population of 10,000. We do research on the
number of people who hold bank accounts, and the number with debit
cards. Based on that estimate we go and set up an ATM in that town.
There can be customers for any bank. So we necessarily do not target
Bank A or Bank B.
One more example: under Jan Dhan Yojna, over
100 million bank accounts are supposed to open, most of them with debit
cards. Once the bank accounts are open and cash deposits start, people
would need ATMs to withdraw money. If they need to go to the nearest
branch, that can be 10 km away.
Travelling and withdrawing money
would be inconvenient and a waste of time. Once the village is decided
for the month, the team goes and researches the place and accordingly
leases the place where the ATM is to be installed. Most village
congregations happen around the market, wholesale shop, telephone shop,
bus stand, etc.
How does the payment process work?
Since
we have an RBI licence, we have a switch. The way it works is, ATMs are
connected through the VSat network, which is connected to the BTI
Payments’ switch. If anyone goes and inserts a card in an India1 ATM to
withdraw money, the machine reads that and sends that information to our
switch, which is in Mumbai. From there, we log the transaction to NPCI
(National Payment Corporation of India). NPCI is the gateway which is
connected to 200-220 banks. Effectively the customers of these 220 banks
can use the India1 ATM.
The message goes from BTI Payments’
switch to NPCI to the respective bank’s switch. The bank then validates
your details, checks your account balance, confirms if it’s a genuine
card. The bank then sends a message in the same format to the ATM to
dispense the cash. The next day, the banks settles the payment to the
WLA operator with NPCI. Along with the amount of cash withdrawn, it pays
Rs 15 extra which is the cash transaction charge. The bank makes the
payment through NPCI.
So is the transaction a loss for the bank then?
If banks run their own ATMs, it will cost them more. The cost per transaction will then be in excess of Rs 25 for banks.
What are the safety measures in place?
Wherever
security guards are mandated, like in Karnataka, BTI will arrange for
them. But in all other places, we are electronically secured. Video
cameras are installed that takes images of every single person who walks
in and out of the ATM. We have live feeds coming in.
So in
places where it is mandatory to have security guards, we comply. In
Karnataka, we have installed ATMs in kirana stores and mobile shops. So
the ATMs are open until the shops close.
This was an innovative
solution we chose to avoid the heavy costs of a security guard which
could run up to Rs 30,000 per month, equal to all other costs put
together. At the same time, we wanted to comply with the directions of
the state. So we located some ATMs inside the shops so that the
shopkeeper himself could double up as the security guard by default.
How has the public responded so far?
We
are pretty happy with what we have done so far. At ATMs which are 7-8
months old, almost 70 to 80 people come in every day. With Jan Dhan
Yojna, opening of new accounts, direct benefit transfer, and the start
of payments banks, we hope to acquire lots of customers in villages.
The entire payment system is going to evolve in the coming months in a
massive way. Today the system which is available to people in larger
cities is not available to people in smaller towns. So insurance
payments, mobile recharges, etc. can happen in the future, maybe in six
months. Moreover, we see small banks and payment banks as a big
opportunity to augment our business.
What are the technical issues that you are facing and what are the customer complaints you receive on a daily basis?
For
us it’s biggest area of focus. Of the 100 people we employ, a majority
work in the backend on a continuous basis to monitor the ATMs. The ATM
is in continuous communication with the switch on a real-time basis.
If
there is a power breakdown or cash shortage, then the ATM immediately
messages our switch that cash or power is not there. Once we get the
message we have a monitoring system that converts it into a trouble
ticket, which ensures that instantly a message is sent out to our cash
management agency, which in turn sends out someone to resolve the
matter. We aim at 95 per cent availability, which means 95% of the time
when a customer walks into the ATM it should be running with sufficient
cash.
We forecast on a daily basis the amount of withdrawal
from an ATM. Let’s say, an average withdrawal from an ATM is around Rs 2
lakh. But if I don’t want to be out of cash and load it up with Rs. 10
lakh, I end up paying a higher rate of tax, besides blocking my capital.
Therefore, we need to optimise the amount we put in every day. My COO’s
job is precisely to keep the ATMs up, and he and his team are
constantly working towards keeping the ATMs up and running 24x7. We are
much more efficient in running ATMs than banks.
What are your revenues?
On
an average 100 ATM transactions per day, there are cash and non-cash
transactions. For the first, I get Rs 15 per transaction, and for the
second, I get Rs 5. Hence the weighted amount can be Rs 12 to Rs 13 per
transaction or Rs 1,200 per day and you then multiply that by 30 days.
We
calculate revenues based on ATMs. It would increase as we roll out more
ATMs. But now we are growing at ridiculous a percentage of 20 per cent
to 30 per cent per month. It is because our base is very small. When I
roll out 200 ATMs every month, the first month I get an average of 30 to
40 transactions per day on every ATM, which eventually increases.
Umesh M Avvannavar, Bengaluru, March 12, 2015, DHNS:
Changzhou-based co wants to set up warehouse here
Changzhou-based World Textile Group, manufacturers of synthetic fabrics like polyesters, nylons, and blends of polyesters, nylons, and cotton, mainly for outer wear and active wear, is exploring the Indian market with the aim of setting up a warehouse, a top executive said.
Talking to Deccan Herald on the sidelines of Fabric & Accessories trade show here on Thursday, World Textile Group General Manager Mondy Qin said, “In a bid to explore the Indian market, we are planning to set up a bonded warehouse to cater to the growing needs of the retail market in India.”
After China, India is the fastest growing market in terms of export and retail. With labour cost in China going higher, many customers worldwide are looking at Indian sources.
We have already set up an office in Bengaluru eight months ago, and we are trying to increase our customer base which includes Gokaldas Exports, Texport Overseas, Arvind Garments, among others.
“We are here to provide the best of service and quality to our customers and in the long run we will set up a warehouse. The fluctuations in the yen against the US dollar is affecting the export business. So for the long term we are planning to set up a manufacturing unit in India,” he said.
The company has 450 machines which can produce up to three lakh metres of fabric per day. It employs around 300 people. Simultaneously, the company is into garment manufacturing, mainly board shorts (used for surfing), walk shorts, shirts and outer wear. These products are exported to the US and European markets. Own brand
World Textile Group saw a turnover of $35 million in 2014. It is looking at a growth 30-35 per cent for next year. “We also have our own brand Dunkelvolk, which we started in 2012. We have 15 stores in East China, besides presence in five eCommerce portals like Alibaba.”
“With our strong supply base in fabrics and garments, besides owning a brand, the next step is to move to the Indian market. We are exploring the Indian market not only for our sales, but also in terms of buying garments for our brands,” Mondy Qin said.
According to UN Comtrade data, during January-October 2014, India’s garment exports rose 14.6 per cent to $14 billion. In contrast, export volumes from China were 6.5 per cent higher at $145 billion, which in value terms was 10 times higher.
Umesh M Avvannavar, March 13, 2015, Bengaluru DHNS
1,75,000-sq feet factory to come up in Peenya
Bengaluru-based Ace Manufacturing Systems, one of the largest
manufacturers of vertical machining centres in India, is planning to set
up a new facility with an investment of Rs 60 crore by the end of
2015-16, a top company executive said.
Talking to Deccan
Herald, Ace Manufacturing Systems Managing Director P Ramadas said,
“Only 60 per cent of our 10-acre plot in Peenya has been utilised. This
includes the corporate office and the factory built over 2,00,000 sq ft.
This helps us to build 1,200 machines per year. In the new
financial year (2015–16), we plan to construct another 1,75,000 square
feet facility in the remaining area to build an additional 2,500 to
3,000 machines per year.”
“We plan to invest around Rs 40 crore
for the building and Rs 20 crore for setting up the plant and
machinery,” Ramadas said. “We will also invest in competent leaders to
undertake key responsibilities,” he said.
Sizeable exports
On
exports, Ramadas says: “Our exports percentage is 10 per cent of our
turnover this year, which is around Rs 30 crore. Since inception we have
exported machines to China (35%), Japan (21%), Italy (13%), Russia
(10%), France (4%), Australia (3%), and Thailand (3%). Others (UK,
Brazil, Oman, Dubai, USA, Germany, Turkey and the Netherlands) make up
around 11%. The company employs around 450 people.
On challenges,
Ramadas said, “We are expecting a growth of 40 per cent CAGR in the
next five years. This calls for availability of skilled and trained
manpower in key roles.”
Ace Micromatic Group wants to be one of the top 10
machine tool groups in the world by 2023. “We plan to produce around
3,000 machines per year and reach Rs 1,000 crore turnover by 2018–19,”
Ramadas said.
Wants govt to prise open EU, US markets using FTAs
Given very stiff competition from its South
Asian neighbours, India needs to focus on getting duty-free access to
EU, and subsequently to the US, as they are two of the biggest export
markets, garment makers feel.
Talking to Deccan Herald on
the sidelines of the Fabric and Accessories (F&A) trade show, Nike
Country Director (India, Sri Lanka and Pakistan) Atul Ujagar said,
“Indian apparel exports are roughly around $17 billion which is less
than the textile, yarn, and cotton exports which amounts to around $20
billion. Together, textile and garment exports are at around $37
billion.”
Other countries are actively working on “free trade
agreements which would help their apparel be allowed ‘duty-free’ into
developed countries.
The textile and apparel industry is strong,
and given ample support, it would emerge as one of the fastest growing.
The government should be much more aggressive on securing duty-free
status to open up the EU and US markets,” he said.
He said the
industry employs 45 million people which makes it one of the top three
employers. “We are not able to realise the full supply chain value which
we should strive for,” Ujagar said.
He said India has a very
competitive labour rate compared with other South-east Asian countries —
in fact one of India’s core strengths is its cost-competitive labour.
Where we lag behind is in productivity and efficiencies in
manufacturing. There needs to be a dedicated focus to improve India’s
productivity, he said.
He said even neighbours Bangladesh and Sri Lanka fare better as they have a better and productive labour pool.
He
feels Sri Lanka has the edge in infrastructure in terms of
manufacturing set-up, power, roads, ports, besides overall efficiencies.
Bangladesh too enjoys similar advantages in labour and infrastructure,
he said. According to him, India has just a 2-3 per cent share of the
$700 billion global apparel and textile trade.
Arvind Lifestyle
Senior Vice-President Anindya Ray said, “In China, the government
actually provides a platform for buyers through huge exhibitions. It is
an ongoing process throughout the year. After agriculture, our industry
is the second largest employer. We employ right from unskilled labour to
skilled labour. It is unfortunate that the government is not trying its
best to help our industry.”
“Without government support, this
industry will become a dying industry. We have been placed with our
backs against the wall. We export around $17 billion, whereas tiny
Bangladesh exports around $24 billion. Just to give perspective, China’s
exports are around $65 billion,” Ray said.
“Despite the fact
that everyone is talking about China, that country is becoming expensive
and people want to move out. The fact is that this industry has grown
in China, and is still growing. But even if there is a one or two per
cent shift away from China, we are not in a position to make use of it
owing to the lack of infrastructure.”
Umesh M Avvannavar, March 15, 2015, New Delhi, Dhns:
All roads will lead to Buddh International Circuit, Greater
Noida, as Tata Motors, India’s largest manufacturer of commercial
vehicles, kicks off the second season of the T1 Prima Truck Racing
Championship 2015 here on Sunday.
Tata Motors has
brought this popular sport to India as T1 Truck Racing Championship
under the aegis of FIA (Federation Internationale de l’Automobile) and
FMSCI (Federation of Motor Sports Clubs of India). The event proved to
be an exciting one last year, drawing huge crowds to the Buddh Circuit.
A
total of 12 Prima Race trucks representing six teams (Castrol Vecton,
Cummins, Tata Technologies Motor Sports, Dealer Warriors, Dealers
Daredevils and Allied Partners) will compete for the top spot. The
trucks have been modified based on the British Truck Racing Association
(BTRA) guidelines and certified by FMSCI after undergoing stringent
security checks.
After Saturday’s free practice sessions and a
qualifying window, Sunday’s main race will be preceded by a Super
Qualifying heat, an eight-lap sprint race at noon. The Championship
Finale, a 16-lap race, will be held two hours later.
In the first season, Stuart Oliver was the champion, finishing 15 laps in 25.05 minutes.
Tata Motors, keen to host the third edition in 2016, has confirmed that it is looking at introducing Indian drivers as well.
Umesh M Avvannavar, Bengaluru, March 18,2015, DHNS
Robustly-built The new Vento's powerful 1.5-litre TDI
engine, sophisticated clutch management, and improved fuel economy
makes it a winner by far
I have never encouraged any of my family
members or friends to buy an automatic transmission (AT) car. Factors
like the car’s pick-up and power were intimidating for someone like me,
used to driving cars with manual transmissions.
But everything changed one day, when I got to drive Europe’s largest carmaker Volkswagen’s Vento.
The
Vento is not just another ‘car’. With its sports car-like appeal under
the hood, it is unbelievably one of the best bets available in the
mid-size sedan segment.
Mark my words, just go for a test drive,
who knows you might end up buying one!At first, I too was skeptical when
told to test-drive the Vento Highline AT DSG. It was a cloudy Sunday
morning when I beheld the toffee-brown machine. Though a rather dated
sedan, having been on Indian roads for a few years now, the
robustly-built car, with a heavy stance, appears elegantly carved in its
all-new avatar. The new dual-beam headlamps (complete in black finish)
and fog lamps will bring you a notch closer to class. Even the rear
bumper and powerful tail lights are quite impressive.
The
body-coloured mirrors are the perfect mix of design and function.
Interestingly, the mirrors are stretchable enough to take a hit in
chock-a-block traffic. The wheels come wrapped in new 15-inch spokane
alloys and the sleek body-coloured door handles beckon you to come in
and behold the splendour.
I was eager to see what was under the
hood. The new Vento comes with a powerful 1.5-litre TDI (turbocharged
direct injection) engine, which churns out a notable 103 bhp power and
250 Nm torque.
TDI is a design of turbo diesel engines which
feature turbocharging and cylinder direct fuel injection developed and
produced by the Volkswagen Group. In direct injection, the fuel skips
waiting inside a standard engine, and instead proceeds straight to the
combustion chamber. This allows fuel to burn more evenly and thoroughly
to give better mileage and greater power.
Turbo-charge appears on
diesel engines. A turbo can significantly boost an engine’s horsepower
without measurably increasing its weight.
Inviting, classy interiors
The
moment you take the driver’s seat, you will notice the flat-bottom
steering wheel with smart controls, mounted conveniently on the tilt and
telescopic steering wheel. The luxuriously upholstered seats, including
the height-adjustable driver’s seat, will add an extra bit of
indulgence. Open any door and the footwell too lights up, lending the
cabin more visibility. The rear seats are very spacious which can make a
seven-feet tall person sit comfortably with the help of the centre
armrest. The boot space can occupy your neighbour’s luggage.
In
response to popular demand for advanced, refined, diesel automatics, the
new Vento 1.5 TDI is now available with Volkswagen’s
technologically-advanced 7-Speed Dual-Clutch DSG automatic transmission,
a feature unique to the segment.
Volkswagen’s 7-Speed DSG has
two clutches; clutch 1 handles odd-numbered gears, clutch 2 handles
even-numbered gears plus reverse gear. As a result of this sophisticated
clutch management, there are no gaps in propulsive power and power
delivery remains uninterrupted. The “lag” that is sometimes associated
with conventional automatics is non-existent.
In addition to
providing outstanding driving, Volkswagen’s 7-Speed DSG, with its
perfectly timed and executed gearshifts, also helps with improving fuel
economy and lowering emissions.
The anti-lock braking system
keeps you in control on slippery roads or during heavy braking, while
the anti-pinch technology stops windows from closing on sensing even the
slightest obstacle ahead. The Vento comes with dual front airbags as
standard and a rear parking sensor. As a finishing touch, the key of
the new Vento has a standard electronic immobiliser anti-theft device.
I
switch on the ignition, and pat comes the advice from the VW driver to
keep my left leg to rest and the use the right leg for both the brake
and accelerator.
The German major has to be appreciated for
training drivers. With high volume of music, the excitement increases.
And with just a slight touch to the accelerator, the Vento vrooms. The
powerful engine, plus a quick shifting automatic gearbox, makes the
drive so comfortable.
Having decided to drive initially inside
the city to see how it tackles the traffic, the new Vento with 5.4 m
turning radius and electronic power steering makes it easy to navigate
even in the most congested places.
In a bid to stretch the car at
higher speeds, I took the NICE road. Believe it or not, in Sports mode I
didn’t even realise it when the car touched 200 kmph. Oh boy, I felt
like I am driving a Formula One racing car.
The kick you get with the turbocharger is mindblowing, and you feel like pushing the car a little bit more.
For Vento, the DSG can be a game changer. To cross 0-100 kmph it just takes a little over 10 seconds.
No worries on bad roadsAfter
highway, it was time to test the Vento on bad roads. Devarayanadurga is
a rocky hill station situated in the midst of picturesque scenery at an
attitude of 3,940 ft and about nine miles to the east of Tumakuru. It
is located 73 km from Bengaluru on the Tumakuru Road, and is surrounded
by forests and several temples.
I reached Udiger, a tiny
hamlet which has enough bad roads and potholes. But the Vento takes on
bad roads and doesn’t tend to trip on potholes. The MacPherson strut
with stabiliser bar in the front and semi-independent trailing arm gives
you a smooth drive.
Moreover, the brake is so good that it needs
just a slight touch to halt your car. The new Vento is available with a
range of four-cylinder engines — 1.6 MPI, 1.2 TSI, and 1.5 TDI.
The
new Vento’s 1.5-litre four-cylinder TDI turbo-diesel engine produces
103 horsepower and 250 Nm of torque, which provides impressive
performance on the road, while its fuel economy figure of 21.21 kmpl
provides uncompromised efficiency. The Vento Highline AT DSG is
competitively priced at Rs 11,73,702 (ex-showroom Bengaluru).
Umesh M Avvannavar, March 20, 2015, Bengaluru, DHNS
Bielefeld (Germany) headquartered Union Knopf,
one of the leading button and clothing accessory manufacturers, feels
the Indian domestic garment market has evolved as one of the core
markets, a top executive said.
Talking to Deccan
Herald, Union Knopf (Hong Kong) Managing Director Eberhard Ganns said,
“The Indian domestic garment market has evolved as one of our core
markets, something which a lot of people did not expect to happen a few
years back.”
“Traditionally, we overdelivered to Indian markets.
Based on the nomination of western brands, we delivered the goods to
garment makers, who then export them under western labels. We have had
substantial success in the Indian market. India has evolved as a core
market on a global scale,” Ganns said.
The 104-year-old company,
engaged in producing all types of hard trims like buttons, buckles,
snap/jeans buttons, zipper pullers, cot stoppers and others, services
more than 200 western brands, including Burberry, Armani, Adidas,
Macy’s, Nordstrom, Hugo Boss, etc. Domestic Indian clients include
Madura Group, Arvind Brands, and Raymond, besides others.
The
company, which entered India in 2011, has representation in Bengaluru
and Mumbai, and has plans to set up a new office in NCR this year. On
sales revenues in India, Ganns said, “We are targeting to crack Rs 10
crore this year, compared with Rs 5 crore last year.”
Globally,
he said the company achieved a turnover of €50 million last year. Union
Knopf has two factories in Germany, but its main production hub is in
Turek (Poland). It employs over 700 people. For Union Knopf, Europe is
the big market accounting for 70 per cent, followed by Asia with 20 per
cent share, and then the US.
On global challenges, Ganns said,
“Being the frontrunner, we are constantly being knocked off (copied). We
are forced to develop new items very fast in a very short cycle to stay
ahead of the crowd as our products are being knocked off in so many
countries. We are coming up with close to 2,500 new products every six
months which require tremendous investments.”
On the challenges
faced in India, Ganns said, “We are still facing a roadblock
incorporating ourselves in India for setting up import operations. What
we found is that there’s so much of red-tapism...it is so difficult.”
Ganns,
who is in-charge of overseas operations outside Europe, said: “We are
coming from Hong Kong where incorporating a company takes one afternoon
(maximum three hours). In India the paperwork is really demanding...the
rules keep changing. With the new government, we are hoping this will
improve.”
66. 'ABS is the cornerstone of big progress in safety'
March 23, 2015, DHNS
WABCO, a global supplier of
technologies that improve the safety and efficiency of commercial
vehicles, demonstrated its advanced safety technologies as the official
Braking Technology Partner at Tata Motors’ T1 PRIMA Truck Racing
Championship, 2015, at the Buddh International Formula 1 Circuit in
Greater Noida recently.
In an interaction with Deccan Herald’s Umesh M Avvannavar, WABCO Chairman and Chief Executive Officer Jacques Esculier spoke about the company’s status as a major contributor to the safety of commercial vehicles.
Wabco is one of the leading partners in the PRIMA racing championship. Tell us about your association with Tata Motors?
This
is a very strong, five-decade long partnership. Tata Motors actually is
one of the strongest customers for WABCO globally and we are very
proud of being a part of this event. Indeed, the environment of a race
like this is extreme and demands very reliable, fine-tuned systems. We
are showcasing those technologies here to prove that trucks are
manufactured using the same systems featured on them today, and that
they are incredibly safe and reliable.
What do you have to say about the latest technology that WABCO has implemented in terms of this kind of a championship?
WABCO
is a major contributor to the safety of commercial vehicles anywhere in
the world, including in India. We are very proud to introduce the
anti-lock braking system or ABS, which is an incredibly important
element of safety on trucks in the world. All trucks today are equipped
with ABS technology. The government has mandated that by the end of this
year, all trucks manufactured in India be equipped with ABS. We will
continue to provide India with technology developed in Europe, and
adapted to India, to enhance the safety of commercial vehicles on the
road.
How important is the Indian market for WABCO?
India’s
market represents today approximately 5 per cent of revenues globally
and growing. In addition, WABCO India is also a strong contributor to
product development and manufacturing for WABCO globally. There are
trucks around the world that carry products that were designed in India
and are manufactured in India.
Which is the country that sells more trucks with your products installed?
First
of all, it’s very difficult to find buses or trucks that are not
equipped at least with some products and systems from WABCO. China is
the largest producer with more than 1.1 million trucks annually, while
India produced at the peak, 3.74 lakhs air brake vehicles. To give an
overview of our geographical base, Europe contributes about 60 per cent
of our sales, US about 15 per cent, China 7 per cent, India 5 per cent,
Brazil 7 per cent.
What is important for us is that we address
the growing demands of the market as well as increasing levels of
technology needs of the commercial vehicle industry. For us, it is a
$3,000 per truck market in Europe. India is right now growing, and by
next year would approximate to a $500-per-truck market.
Despite
the government mandate, ABS doesn’t look ready to market in India. Even
in cars, we hardly find ABS, what to say about trucks then?
ABS
is the cornerstone of big progress in safety. Because for one, it
avoids by itself a lot of minor accidents like loss of control, skidding
and spinning off the road. Second, it also opens the doors to an array
of additional functionalities and capabilities that are also important
like stability control, collision mitigation system, lane departure
warnings, etc.
The ABS mandate is the beginning of a solid
improvement path for the safety of commercial vehicles in India. You
have to realise that even though the Indian fleet of commercial vehicle
only represents 1 per cent of the global fleet, 8 per cent of the
fatalities due to commercial vehicles happen in India. As we keep adding
further functionalities, we will reduce the number of accidents and the
number of casualties in five years.
You were talking about the investment part. How much has been invested in India so far?
The
investment rate is about $10 million a year and WABCO India is actually
60 years old so it is actually hard to tell how much money has been
invested. But we are investing $10 million a year.
WABCO India reported Rs 1,138 crore in sales in 2013-14. What are the expectations for the current financial year?
We
don’t comment on this because as it’s a public company. But we expect
about 15-20 per cent of outperformance, i.e. to generate 20 per cent
more revenues beyond the industry’s growth. We did Rs 417 crore in
exports from India. For full year 2014, WABCO globally reported sales of
$2.9 billion, up 6% in local currencies from a year ago.
Which product segment has generated the highest growth in the previous year?
Air
compressors accounted for 11 per cent of sales in 2014, conventional
brake controls 11%, transmission automation 10 per cent, air processing
10 per cent, anti-lock braking systems 15 per cent, and electronic
braking and stability control systems 11 per cent, to highlight a few
within our global product portfolio.
You are planning to ramp up production along with ABS implementation in India?
Yes.
We have implemented local capability quite a while ago. Actually, we
are already equipping 10 per cent of production, particularly to those
vehicles that require ABS in transportation. And we have the capability
to cover all vehicles, so everything is in place.
What
are the challenges you face in terms of safety, because globally the
standards are different when compared with India? Indian customers are
very cautious about price, for instance.
We have
redesigned and lowered the cost to the maximum. The value that ABS will
bring in terms of safety is immense and the price too will be well
justified. Again, there will be further capabilities and functionalities
introduced by WABCO, and we already offer systems like roll-stability
controls, which prevents vehicles from rolling over and jackknifing with
the trailer. We are talking about the collision mitigation system, and
functionalities that prevent rear-end collision, which is a major cause
of on-road accidents. We are also looking at the lane departure warning
system.
Apart from Tata Motors, which are your major customers in India?
Ashok
Leyland. Actually all vehicle manufacturers are our good customers.
Globally, Daimler, Volvo, Volkswagen, Paccar, Tata, and Ashok Leyland
are the most important customers for WABCO.
Would you like to add anything more?
One
thing that is interesting is the introduction of the concept of AMT
(automated manual transmission) in the world of commercial vehicles. You
know 75-80 per cent of buses and trucks in Europe have AMT systems. The
penetration of AMT in Europe is growing fast and it saves you up to 5
per cent fuel. It really makes it much easier to drive a truck or a bus
and it’s more comfortable for passengers too. When you have shortage of
drivers, it shortens training by a large extent, and allows drivers to
pay more attention to what’s going outside the truck. It normally takes a
lot of attention for a driver to shift gears, but if we take that out,
driving a commercial vehicle is easier.
Are you planning to bring AMT-equipped vehicles to India?
There
are already city buses equipped with AMT in Kolkata and Mumbai, and
soon there would in Bangalore too. They are highly appreciated by fleet
owners and managers. We have equipped about 1,000 buses. That includes
about 400-plus city buses in Kolkata. Right now, we are introducing it
to trucks.
Is AMT being brought India as completely knocked down (CKD) kits?
We
are currently sourcing it from our China plant. By the end of the year
we will start supplying from India, i.e. from Chennai. We will be
assembling it locally and by July they should be ready.
How many units are you planning to assemble?
That
depends on the demands of the customer. Ashok Leyland has launched
their Jan bus. Other customers like Tata Motors are working with us. We
are expecting it to grow and anticipating that we are putting up
facilities, and essentially we are flexible in building up the capacity.
What is the product portfolio of WABCO worldwide?
WABCO
specialises in the engineering and manufacture of actuators, air
compressors, air processing, air management systems, foundation brakes,
anti-lock braking systems, conventional braking systems, electronic
braking systems, electronic and conventional air suspension systems,
transmission automation and clutch controls, vehicle electronic
architecture, electronic stability control, and roll-stability support.
What are the initiatives taken by WABCO towards vehicle safety?
One
area is Advanced Driver Assistance Systems (ADAS). It involves
connecting advanced sensors with truck control devices, such as braking
and steering systems as well as engine controls, to improve safety, and
avoid collisions. We pioneered our breakthrough OnGuardPLUS™ technology,
an advanced emergency braking system (AEBS).
What are WABCO’s development plans on the technology front?
WABCO’s
vision is to improve advanced safety and driver effectiveness and halve
the number of commercial vehicle accidents by 2020. WABCO is working to
enhance the global vehicle efficiency and environmental sustainability
by 20 per cent.
Does WABCO intend to set up more testing centers in the International markets?
WABCO’s
global engineering network has hubs in Germany, Poland, India, and the
United States. We leverage these innovation resources to satisfy our
needs, meet the requirements of our customers, and fully integrate with
our global manufacturing and sourcing network.
67. PSB laggards have their tasks cut out on revival
Umesh M Avvannavar: March 24, 2015 , Bengaluru, dhns:
Recently, rating agency Moody’s downgraded the
Central Bank of India and the Indian Overseas Bank’s local and foreign
currency deposit ratings, anticipating low level of support from the
Centre to these banks.
The move is considered a fallout
of the Centre’s decision to identify these two banks among the
non-performing public sector banks (PSBs), while announcing the infusion
of Rs 6,990 crore of capital into nine performing PSBs.
But
Indian Overseas Bank MD and CEO R Koteeswaran denied apprehensions that
the ratings downgrade would affect business. In an email response to
Deccan Herald, he said, “There has been some speculation that the
ratings downgrade would have an effect on our business, which is totally
false. The downgrade will have an effect only if we go for a medium
term note (MTN) issue and that is not likely any time in the near
future, for about six to nine months. By then our ratings would quite
likely have been upgraded again.”
Banking expert and RBI chair
professor, IIM Bangalore, Charan Singh too downplayed fears that
non-performing banks are on a sticky wicket, “I think that
non-performing (NP) public sector banks are owned by the Centre and,
therefore, there would not be any problem. The government is correct in
expressing its agony and conveying it so transparently.”
To
identify the performers among the PSBs, the Centre adopted new criteria.
Efficiency was determined by taking the weighted average of return on
assets (RoA) for all PSBs for the last three years. Also, the return on
equity (RoE) for these banks for the last financial year was considered.
In both instances, those which performed better than average were
rewarded, identifying the nine banks.
Originally, Rs 11,200 crore
was set aside for PSB capitalisation in Budget 2014-15. Now that Rs
6,990 crore has been disbursed, it’s expected that the remaining Rs
4,210 crore would be disbursed this month. In Budget FY 2015-16, Jaitley
has proposed to infuse Rs 7,940 crore funds to PSBs. In order to raise
funds, banks have been allowed to reduce government stake to 52 per cent
as well.
Bank Bureau a factor
It’s not known
whether the efficiency criterion would be adopted again during fund
infusions. Another aspect is the proposed autonomous Bank Board Bureau
visualised in Budget FY 2015-16.
The Bureau will be mandated
with searching and selecting heads of PSBs. Also, it is expected to help
banks in developing differentiated strategies and capital raising plans
through innovative financial instruments. The budget says this would be
an interim step towards establishing a holding and investment company
for banks.
Charan Singh too stresses the importance of
careful selection of top management in public sector banks. He goes a
step further, “The government should hold auditors and chartered
accountants also responsible for such non-performing PSBs.”
Other non-performing banks too await rating downgrades from Moody’s and other rating agencies.
What
corrective measures can they take? In Charan Singh’s view, the recovery
on non-performing assets (NPAs) have to be strong. “I would like a road
map that clearly delineates step-by-step as to what would the bank do,
when an asset or a portfolio appears to be stressed. The trigger should
be identified and the bank should immediately shift to cautious mode
with that specific client. Also, sectors in which NPAs emerge should be
identified and banks cautioned by the RBI and the government, so as not
to tread that path.”
On his part, IOB chief Koteeswaran said that
the revival measures he has kicked off “will ensure that our bottomline
becomes healthy again, resulting in upgrading of the rating within a
short term”.
Charan Singh also wonders why the recent pay hike
announced was made uniformly applicable to all PSBs. “This needs to be
reconsidered for public sector banks which are non–performing. It is
contrary to expectations and prudent principles of finance that pay hike
to employees is similar despite such varied performance,” he said.
Umesh M Avvannavar, March 24, 2015, Bengaluru: DHNS
Mauritius-based Aquarelle India, engaged in
manufacturing men’s casual shirts, is planning to invest Rs 100 crore to
set up a new manufacturing unit outside Bengaluru, a top executive
said.
Talking to Deccan Herald, Aquarelle India Deputy
Executive Director Nagesh Badida said, “As of now, we have four units in
Bengaluru (two in Jigani industrial area, one each on Bannerghatta Road
and Hennur Road), employing around 2,500 people. We are planning to set
up a new unit outside Bengaluru. We are awaiting final approvals, as
the project has been delayed by almost a year. We are planning to invest
Rs 100 crore in the current financial year.”
Aquarelle, which is
part of CIEL, formerly known as Deep River Investment (DRI), follows
the July to June financial year. The company aims to hire 2,500 people
by setting up a new unit. The new unit, to be spread over 5.5 acres,
will feature 850 buttonhole sewing machines.
The company
currently has the capacity to produce 3.5 million shirts per year and
plans to double the capacity within two years. “We aim to position
ourselves in the upper segment of the market, catering to brands like
Diesel, CK, Tommy, Esprit, Ben Sherman, etc. by investing in the
design-to-deliver concept,” Badida added.
Asked why they are
moving out of Bengaluru, Badida said, “The attrition rate is higher in
metros when compared with small cities. We lose almost 1,000 people for
every new shopping mall. We also hope to get more labour by moving to
labour captive areas.”
When asked on the expectations from the
government, Badida said, “Apparel industry needs training centres, as
training rural people is a big challenge.”
On challenges faced in the
global market, Badida said, “Duty-free access from Bangladesh, coupled
with its competitive labour costs, is a major challenge for Indian
exporters.The Indian government has to realise the potential of this
segment and push for duty-free access to Europe.”
On asked why a
location like Peenya was not working for them, especially after the
Metro has ushered in increased accessibility, Badida said, “We never
preferred Peenya due to the cluster of factories where labour keep
crossing floors owing to competition between various companies.”
The
company has units in Mauritius producing around 2.5 million shirts per
year with major exports to the US. “We cater to top brands from there in
the US like J Crew, Dillards, Eddie Bauer, Joseph Abboud, Men’s
Wearhouse, and others. We also have the capacity of three million units
in Madagascar with one factory in Antananarivo and another in Antsirabe.
“Production
in India began in 2005 with a very conservative start of 500 shirts per
day and today, we are doing 15,000 shirts per day. From India, 80 per
cent of the shirts are exported majorly to Europe, the US, and Gulf.
With the remaining 20 per cent, we cater to the domestic market too,”
Badida added.
Umesh M Avvannavar, BENGALURU, March 26, 2015,DHNS:
MD Sansi says bank no longer a Karnataka-centric one
Bengaluru-based public sector lender Vijaya
Bank is embarking on network expansion pan-India, and it wants to add
100 more branches this calendar year, a top official said on Thursday.
Talking
to Deccan Herald on the sidelines of the inauguration of Vijaya Bank’s
1,600th branch here at Babusapalya (Kalyan Nagar), its Managing Director
and CEO Kishore Sansi said, “We propose to open 100 branches this
calendar year. It’s a pan-India expansion...we see potential in Gujarat,
Madhya Pradesh, Chhattisgarh, where we have comparatively little
presence. Wherever the economy is improving...we would like to partner
with that state.”
“Vijaya Bank is no longer a Karnataka-centric
bank, because we have 28 branches in the North-east, close to 40
branches in Punjab and Haryana, and 80 branches in the Delhi/NCR region.
We have regional offices in Kolkata and Lucknow. We are planning to add
more branches in such areas so that our presence is felt more,” Sansi
said.
With 526 branches in Karnataka and 86 in Bengaluru, out of
1,600 branches nationwide, the bank aims to have better reach in rest of
India.
On employment generation, Sansi said, “We have about
1,900-plus new manpower is coming to us at various cadres, out of which
959 will be officers. They will join us from the first week of May. The
bank’s total staff strength is 13,686.”
The bank’s total deposits
stood at Rs 1,25,000 crore and advances at Rs 83,000 crore, taking the
total business to Rs 2,08,000 crore. “With every 100 new branches, the
bank gains Rs 15,000 crore more of business — nearly Rs 10,000 crore of
deposits and Rs 5,000 crore of advances — and close to 10 lakh new
customers. The bank aims to add 1.5 million new customers by this
calendar year,” Sansi said.
Sansi claims that the bank’s USP
(unique selling proposition) is having the youngest workforce among
public sector banks. “The average age of a Vijaya Bank employee is 40
years and two months. We are having a special focus on grooming young
executives who are joining us each year.”
On NPAs, Sansi said,
“We have the lowest NPAs in the industry...Gross NPAs are at 2.89 per
cent and net NPAs are at 1.92 per cent. Our endeavour is to reduce them
further by March 2015. But I think there should be a reduction of 20 bps
by the end of this year.”
Arundhati Bhattacharya gave an inkling to the thinking of many bankers when she said a CRR cut would
Even after two rounds
of surprise repo rate cuts outside the regular cycle on January 15 and
March 4 by the Reserve Bank of India (RBI), only a handful of bankers
have passed on the benefits to their customers.
In a
not-for-attribution quote, an RBI official had even slammed the bank
practise of making a “mockery of monetary policy transmission framework”
with their tendency to readily borrow from the central bank at the
policy rate and then lend that money out at a high rate. But alas, it
seemed to have cut no ice with bankers.
Recently, Arundhati
Bhattacharya, the Chairman of the State Bank of India (SBI), gave an
inkling to the thinking of many bankers when she said a cut in the cash
reserve ratio (CRR) would “definitely help” banks to cut lending rates.
In an interview to Reuters, she explained the rationale, “We can put
money which is today not earning anything, into earning assets. That
cushion that we get, enables us to transmit faster,” she said.
CRR
or the share of deposits which banks must park with the RBI, has
remained constant at 4 per cent during the two recent repo rate cuts.
SBI,
which employs 200,000-plus, and has more than 16,000 branches, is the
country’s largest bank with a quarter of its banking assets. When the
SBI chief speaks, others listen. Is her wish for a CRR rate cut then, an
articulation of a genuine grievance? The economic research department
of SBI had only a few days ago suggested that the RBI may cut the CRR
rate as a prelude to the next bimonthly policy review on April 7. Is the
SBI chief then setting up expectations for a CRR cut? Deccan Herald
talked to a cross-section of banking sector players, analysts, and
policy wonks to get a sense of what’s happening.
Banking sector woes
According
to banking expert and RBI chair professor, IIM Bangalore, Charan Singh,
“Banks are facing a number of challenges mainly, rise in NPAs
(non-performing assets) in the infrastructure sector. There’s low credit
offtake, pressure on profitability with the announced hike in salaries,
increased number of bank accounts — including under the Prime
Minister’s Jan Dhan Yojana (PMJDY) — which need to be serviced, and the
absence of provisioning for higher recruitment and technology
upgradation.”
Chipped in M Govinda Rao, former member, fourteenth
finance commission and emeritus professor, National Institute of Public
Finance and Policy: “During good years, the private sector made
aggressive investments, particularly PPP (public-private-partnership)
projects in highways and power. Later, due to problems of land
acquisition, environmental clearance, and inability to source the fuel
supply, the projects could not be completed, resulting in huge time and
cost overruns. Investments stuck in this manner amount to about 8 per
cent of GDP. Banks have lent to them heavily, and as a result, their
NPAs have mounted.”
Kishore Sansi, MD and CEO of public sector
Vijaya Bank had this to say, “Lot of capex (capital expenditure) has
been invested and returns are not coming, which is impacting our balance
sheet. Credit offtake is not happening at all. We are mostly dependent
on retail and mid-corporate loans. The latter does not give us volume
and retail has become very aggressive. For example, we are giving
housing loans at the rate of 10.30 per cent as against the rate paid on
borrowed funds of 8.75 per cent. So my net interest margin (NIM) gets
awfully reduced.”
V K Vijayakumar, investment strategist at
Geojit BNP Paribas said, “The ratio of NPAs to total advances, which was
around 3.4 per cent a year in March 2013, is now 4.6 per cent. For PSU
banks, the ratio is higher at 5.3 per cent. The figure is higher if the
restructured loans are also factored in. Also, PSU banks are hugely
undercapitalised and, therefore, will not be in a position to expand
credit when the economy recovers.”
Where repo, SLR cuts fail
Repo
(repurchase) rate is the rate at which the RBI lends short-term money
to banks against securities. After two rounds of recent cuts, it is now
at 7.5 per cent. Charan Singh thinks there could be a reason behind
banker reluctance to cut rates, “Repo rate, which is applicable for
borrowings from the RBI, may not be tapped by all commercial banks.
Reduction in repo rate is a strong signal, but it takes time to transmit
as is the case in many countries.”
At the February 3 review, RBI
cut the statutory liquidity ratio (SLR) or the portion of bank deposits
which should be parked in government securities from 22 to 21.5 per
cent. This was supposed to release about Rs 50,000 crore into the
banking system. But the bankers apparently aren’t impressed.
Charan
Singh offers a reason, “In India, banks continue to hold many more
securities under SLR because of ‘lazy banking’ as well as fears of
rising NPAs. Reduction in SLR provides a notional room for surplus
liquidity, but need not convert to higher credit offtake.”
Govinda
Rao said, “Although SLR reduction allows banks to release funds from
government bonds, they have to sell it to other banks. The bond market
is thin, besides when every commercial bank tries to sell bonds, their
prices fall, which means a rise in interest rate. Also, because of high
NPAs, banks are unwilling to lend to the private sector and prefer to
hold government bonds even when RBI reduces the SLR to 21.5 per cent.”
Puneet
Pal, head (fixed income), BNP Paribas Mutual Fund, has this interesting
take: “The current SLR being maintained by banks is close to 30 per
cent, almost 8 per cent higher than the mandated requirement. The
decision to reduce SLR has not actually led to lower holding of
government securities by banks. An SLR cut does not generate more
liquidity in the system but is an effort to redirect funding to more
productive sectors of the economy rather than the government.”
Vijayakumar
says, “SLR provides liquidity but does not lower the cost of funds.
Banks would have reduced rates under normal conditions. But these are
difficult times when bank profitability is under severe strain.”
CRR cut is popular
Many
experts we spoke to are broadly supportive of the SBI chief’s view that
a CRR cut would be helpful. Vijaya Bank’s Sansi said, “Suppose CRR is
cut down by 50 basis points; an additional surplus cash is available
that can be gainfully deployed because in CRR we don’t get any interest.
The average ease of advances for Vijaya Bank is 11.32 per cent, and to
that extent it can improve the bottomline and some benefit can be passed
on to customers.”
Puneet Pal said. “A CRR cut reduces the cost
of deposits for banks (for every Rs 100 of incremental deposit, banks
have to keep Rs 4 as CRR, which earns no interest); so any reduction in
CRR helps banks to reduce their costs. Hence, banks will benefit if the
CRR is cut.”
Vijayakumar is also supportive, “Cut in policy
rates do not reduce the cost of funds of banks. On the other hand, a cut
in CRR will reduce the cost of funds.”Not everybody, however, is on
board. In Charan Singh’s view, “Increased liquidity because of lower
CRR could also be used to invest in SLR bonds. So credit offtake to the
private sector would continue to be low.”
Govinda Rao adds a
note of caution, “Monetary policy calibration is most effectively done
by altering the policy rates. CRR and SLR are indirect measures.
Besides, in the prevailing environment, where NPAs are high, cutting CRR
would be risky as people’s confidence depend on the ability of banks to
ensure their deposits are safe. It would be more prudent to manage
their repo rate rather than either the CRR or SLR.”
Puneet Pal
thinks that the SBI chief may be trying to set up expectations ahead of
April 7. But there’s also a sense that the RBI will make its own call.
As Vijayakumar puts it, “Banks cannot influence RBI decisions through
statements. RBI decisions will be data dependent.”
WILL CRR CUT WORK?
Pros
Additional surplus cash is available that can be gainfully deployed because no interest is paid in CRR
A CRR cut trims the cost of deposits since for every Rs 100 in additional deposit, banks have to keep Rs 4 as CRR
Reduction in CRR rate allows banks to release funds for lending immediately
CONS
Increased liquidity because of lower CRR could still be used to invest in SLR bonds
Monetary policy calibration is most effectively done by altering the policy rates
Where NPAs are high, cutting CRR would be risky as people’s confidence depend on perceptiond about bank safety
*********************************************
71. Starwood expands its reach through conversions
Umesh M Avvannavar BENGALURU: April 2, 2015, DHNS:
'Our nimble-footed team has perfected re-badging of hotels'
US-based Starwood Hotels and Resorts, a leading
4- and 5-star luxury chain major operating nine brands globally, is
looking for conversion of existing hotels to drive growth in India, a
top executive said.
Talking to Deccan Herald, Starwood
Hotels and Resorts Worldwide’s president (Asia-Pacific) Stephen Ho said,
“One of the biggest challenges we face in India is the slow pace of
development due to regulatory procedures and infrastructure. Conversion
of existing hotels that operate under standalone brands or under any
other brand provides an opportunity for us to have them join the
Starwood system under one of our existing brands quickly, thereby
driving our growth footprint.”
He said India is Starwood’s fourth
(behind the US, China, and Canada) largest market and will soon be the
third. South Asia is Starwood’s third largest market (behind North
America and China).
Starwood Hotels and Resorts, the largest
upper-upscale hotel company, manages nine brands globally, viz.
St.Regis, The Luxury Collection, W Hotels, Westin, Sheraton, Four Points
by Sheraton, Le Meridien, Aloft, and Element.
“Many well located
and good hotels are either under-branded or do not have the bandwidth
for a global reach. We review them to see if they could potentially be a
fit under one of our brands. These hotels may have the basic bones but
may lack the programming or reach that a global company like ours can
provide. We then work with the owners to layer these hotels with our
brand elements and programming before rebranding them. Once they join
our system they enjoy the benefits of our global sales and marketing
distribution, the reach of our loyalty programme, and the power of
Starwood as a global operator. This helps drive topline,” Stephen said.
Renovation programme
“A
good example of this is the Four points by Sheraton Bengaluru
Whitefield which we converted from an existing hotel into joining our
Four Points by Sheraton portfolio quickly.”
The hotel underwent
extensive renovation and today is an example of a successful and good
Four Points by Sheraton Hotel in the market, he said. The short
turnarounds in the conversions of the Four Points by Sheraton Ahmedabad,
the Four Points by Sheraton New Delhi Airport Highway, Four Points by
Sheraton Dehradun, and more recently Le Meridien Gurgaon highlight the
agility of Starwood’s team to quickly and efficiently convert hotels, he
said.
“We are beginning to see more conversion opportunities now
in the upper-upscale and even luxury brands. We have developed a
conversion-friendly strategy for existing hotels to meet owner and guest
demand, and are helping our partners re-position existing assets in a
cost-effective manner with the backing of Starwood’s powerful
platforms,” Stephen said.
“As the urban landscape develops and
evolves in India we see the emergence of micro markets within larger
markets and the growth of tier-II markets. Today’s tier-II will be
tomorrow’s tier-I markets. We believe in the opportunities that lie in
growing our brands in these markets across segments. We have existing
hotels in Coimbatore, Agra, and Ahmedabad, and are developing hotels in
Aurangabad, Tirupati, Dahej,” Stephen said.
Stephen was in the
city to inaugurate SPG (Starwood Preferred Guest) Keyless, the
hospitality industry’s first mobile, keyless entry system allowing
guests to use their smartphone as a key at Aloft Bengaluru Cessna
Business Park.
Umesh M Avvannavar, April 4, 2015, Bengaluru, DHNS
First St. Regis coming up in Mumbai this year
US-based Starwood Hotels and Resorts, the
largest international upper-upscale hotel company which manages nine
distinctive brands globally, namely St. Regis, The Luxury Collection, W
Hotels, Westin, Sheraton, Four Points by Sheraton, Le Meridien, Aloft,
and Element, aims to bring new brands to India, a top executive of the
company said.
Talking to Deccan Herald, Starwood Hotels
and Resorts Worldwide President (Asia Pacific) Stephen Ho said,
“Globally, we have nine brands and we will open the first St. Regis this
year in Mumbai, and the first W Hotels property in Goa next year. We
also want to introduce our new brand ‘Element’ in India.”
The
company also wants to grow its Sheraton portfolio. “Right now, we have
Sheraton Bengaluru and Delhi, and we will open a Sheraton in Hyderabad.
We are trying to expand our Sheraton, Westin and Le Meridien brands in
gateway cities, tier-II markets as well as resort locations,” Ho said.
Globally,
the company has 1,200 hotels in operation, including 300 in
Asia-Pacific. Under-construction hotels“We have another 250 hotels
under-construction and this year, we will open 36 new hotels out of
which eight will be in South Asia. The good thing is that we have opened
more hotels than any of our competitors in the last five years.
“In
the hotel industry, it is very important to turn your pipeline into
hotels because you can have 200 hotels, but if you never open them, you
will never get to 400 hotels. “So we make it a point that we are able to
open the hotels we sign on. In India right now we have 43 hotels in
operation and another 39 in the pipeline. This year we will open eight
new hotels in India,” Stephen Ho said.
Since we started in 2006
where we formed our own regional office here, we have never looked back.
We started with only two people and today, we have over 150 people at
our regional and sales offices and our customer contact centre,” Ho
said. To add more resorts
He added, “We
will open Le Meridien Dhaka later this year. We have also opened a
beautiful Le Meridien in Thimphu a couple of months ago and another one
is coming up soon at Paro (also in Bhutan).”
“So we are
expanding our footprint in South Asia by consolidating our presence in
existing markets and entering newer markets,” Ho added.
Ho said
the company is looking at strengthening its resort portfolio with the
opening up of Le Meridien Mahabaleshwar Resort & Spa (Maharashtra)
later this year, the Le Meridien Hotels in Bhutan and the W Retreat and
Spa in Goa.
“We operate the Westin Sohna Resort and Spa (Haryana)
and the Sheraton Full Moon Resort and W Retreat in the Maldives and
have resorts under development like Westin Bekal Resort & Spa
(Kerala), Westin Khandala (Maharashtra), Westin Rishikesh (Uttarakhand),
and Sheraton Kosgoda (Sri Lanka).”
Umesh M Avvannavar, April 5, 2015, BENGALURU, DHNS
Oliver of Castrol Vecton triumphs again despite tough time
Tata Motors, India’s
largest manufacturer of commercial vehicles, recently held the second
season of the T1 Prima Truck Racing Championship 2015 at the Buddh
International Circuit (BIC), Greater Noida.
Tata Motors
has brought this popular sport to India as a T1 Truck Racing
Championship under the aegis of the FIA (Federation Internationale de
l’Automobile) and FMSCI (Federation of Motor Sports Clubs of India).
Truck
racing is new in India. The sport began in the United States at the
Atlanta Motor Speedway on June 17, 1979. In the last few years, truck
racing has earned a higher profile, and currently over 30 teams
regularly compete for various championships. Races kick off from a
rolling start, and commonly last from eight to 12 laps. It is a
non-contact sport. All drivers must hold a race licence issued by the
Motor Sports Association, or the national motorsport body from the
driver's country.
T1 Prima Truck Racing Championship 2015 proved
to be an exciting one, drawing huge crowds to the circuit just like it
had last year. Spread over two days — Saturday, March 14, and Sunday,
March 15 — the venue, teams, and participating drivers did not see many
changes from last year. But the race-specs of Prima trucks went through a
host of upgrades incorporating the learnings from Season 1.
Trucks 700 kg lighter
Making
all the difference, the trucks were now 700 kg lighter with a lower
ground clearance and a re-tuned suspension setup. The engines witnessed a
10 per cent improvement in performance, producing 370 HP of power and
with a top speed of 130 km/hr (monstrous for a five-tonne weighing
truck). Braking performance was also enhanced with the new pressurised
water tanks added at the back to cool off the brakes. In this race,
there were 12 custom-built Tata Daewoo Commercial Vehicle Prima model
trucks. To drive them, there were 12 British drivers. There were 16 laps
around the 5.13 km-long track.
Compared with Europe, trucks on
the Indian track featured less power and raced at lower speeds. Last
year, speed was capped at 110 km per hour. This time it was raised a tad
to 130 km per hour. Last year’s race stretched over 15 laps. This time
it was extended to 16. The vehicle's weight was reduced accordingly.
It
was thrilling to see experienced drivers manoeuvre their way around the
track, roaring majestically as their feet stepped on the gas pedals. In
all, six teams participated in the race: Castrol Vecton, Cummins, Tata
Technologies Motorsports, Dealer Warriors, Allied Partners, and Dealer
Daredevils. Each team had two trucks, adding up to 12 drivers.
On
the race day, it drizzled at the BIC. Very large-sized trucks trying to
overtake each other on the straight and curved bends often collided,
adding energy to the raw competitive intensity. The noise from the
five-tonne trucks seemed to add to the frenzy of the race lovers.
Anxious moments
Defending
champion Stuart Oliver from team Castrol Vecton, a 51-year-old driver,
emerged the champion this year as well. But not before he was given some
anxious moments when Steve Thomas of Team Allied Partners topped in the
qualifying race on Saturday, and secured the pole position.
Steve
dominated the eight-lap Super Qualifier race on Sunday as well. But
once the drivers got into the thick of action in the 16-lap final race,
there was no stopping Stuart Oliver, despite the wet conditions. Steve
Thomas of Allied Partners and Steven Powell of Tata Technologies
Motorsports took second and third place respectively.
For Season
II WABCO, JK Tyres, Cummins, Castrol and Tata Technologies were the main
sponsors. WABCO Chairman and Chief Executive Officer Jacques Esculier
told Deccan Herald that the company showcased its reliable,
fine-tuned systems on the participating trucks.
(The author
attended the T1 Prima Truck Racing Championship 2015 at the Buddh
International Circuit (BIC), Greater Noida, at the invitation of Tata
Motors)
Emerson employs over 1,000 engineers with nearly 500 invention
disclosures, and 270-plus patent filings at the Pune Innovation Centre
Ferguson, Missouri-based
Emerson Electric Company is a $24.5-billion multinational electrical
equipment major which manufactures products and provides engineering
services for industrial, commercial, and consumer markets. In an email
interaction with Deccan Herald’s Umesh M Avvannavar, Emerson’s president (India, Middle East and Africa) Pradipta Sen talked about how the company is making the most of its presence in India.
What investments have you made in India till date? What are the challenges you are facing?
India
is a significant region for Emerson. Over the past three years, we have
invested over $400 million into our India operations. Emerson has
operated in India since the 1980s and now employs over 10,000 people. We
have more than 100 offices here, 16 manufacturing plants, and five
global engineering centres. We take both a global and local view of
India. Over the years, we have developed a large engineering talent base
that now successfully serves our global operations.
For
example, we have invested heavily in the Emerson Innovation Centre in
Pune, which is engaged in product development and engineering solutions
for various Emerson businesses worldwide. It employs over 1,000
engineers with nearly 500 invention disclosures. More than 270 patents
have been filed by Pune engineers.
From a local perspective, we
have invested significantly in manufacturing capacity and life-cycle
service. Over 90 per cent of what we sell in India is domestically
produced. Like all companies, we also face challenges. Finding the right
talent is always a challenge. There are certain regulatory and policy
hurdles that currently deter multinational companies from developing and
investing in end-to-end product development value chains in India.
What are these regulatory hurdles?
India
has well-developed engineering, research and development (ER&D)
capabilities, but the investments in this area need to grow for
supporting growth in domestic manufacturing.
At $44 billion,
India invests less than one per cent of GDP in ER&D versus two per
cent in China and nearly three per cent in the United States.
Multinational companies operating in India currently see benefit in
investing only in the engineering aspect of ER&D, given the current
policy scenario in India.
Multinationals would feel encouraged
to invest in developing complete ER&D ecosystem in India if every
part of the product development process, leading to commercial-scale
manufacturing, is treated at par and incentivised equally. Investments
in developing the complete ER&D ecosystem would not only go a long
way in boosting domestic manufacturing but would also position India as a
global hub for manufacturing development, perhaps at par with software.
How many acquisitions have you made in India? How have they benefited the company?
During
the 1980s, Emerson entered into joint-venture relationships with
several Indian-owned companies. Over the last few years, Emerson has
made six acquisitions or joint venture buyouts that positively affected
the company’s business. One of our most recent acquisitions is of Virgo
Valves in 2013.
Virgo has a very strong reputation in the
marketplace, complemented by a very strong Indian manufacturing base. We
are seeing benefits from this acquisition every day, in terms of our
ability to offer solutions to diverse sectors from oil and gas, metals
and pharmaceuticals, to food and beverages. We’ll continue to be on the
lookout for acquisitions which make business sense. We believe in an
ideal mix of organic growth and strategic acquisitions. The companies
that we acquire bring in their own identities and track record of
success. Emerson helps by adding its brand, its management expertise,
technology, scale, and global reach.
What are the future investment and expansion plans of Emerson in India?
Many
sectors including oil and gas, water and waste treatment, cold chain,
manufacturing, construction, etc. are bound to grow significantly in
India. We are prepared to manage this growth in terms of the solutions
to be provided, and resources to manage it. Emerson will continue to be
committed to invest and grow our businesses here. Our strategy is to
focus on local manufacturing, product development, and business support
facilities and provide innovative and mission-critical technologies to
support fast-growing industries across verticals.
How do Emerson’s products and services benefit the industrial and commercial markets?
Emerson
provides innovative solutions for customers in industrial, commercial,
and consumer markets around the world. The company has five business
segments: Process Management, Industrial Automation, Network Power,
Climate Technologies, and Commercial and Residential Solutions. Emerson
Network Power protects and optimises critical infrastructure for data
centres, communication networks, and information and data systems. At
Emerson Industrial Automation, we provide products, solutions, and
services that drive factory automation to greater heights.
Emerson
Climate Technologies is the world’s leading provider of heating, air
conditioning and refrigeration solutions for residential, industrial and
commercial applications. Emerson Process Management helps process and
power generating industries better manage their plants through
intelligent control systems, measuring instruments, and regulation and
control devices. Our solutions help reduce project risk, lower project
costs, shorten overall project schedules, and allow plants to start up
earlier to help maximise the return on investment.
What are the new product/service offerings by Emerson?
We
are a leading provider of wireless technologies applied to industrial
sector and these offerings have gained a lot of traction. A majority of
Indian process industries, such as those operating in beverages/liquids,
pharmaceuticals and offshore oil and & gas production, etc. are
adopting wireless technologies in highly complex plant operations. They
are applying Emerson Process Management’s Smart Wireless solutions for
measurement, tracking, automation, and maintenance purposes.
Wireless
technology basically enables industrial customers to monitor processes
in places where wired connections are impractical. From monitoring oil
pipelines in the desert where soaring temperatures and sandstorms can
damage wired connections, wireless innovation has enabled industrial
efficiency in the toughest of environments. With wireless, a plant’s
power costs go down, while accurate measurement and tracking help in
more efficient functioning. Emerson Climate Technologies reinforced its
position as a leader in the HVACR (heating, ventilation, air
conditioning and refrigeration) segment by being the first to
indigenously develop a compressor which runs on the
environmentally-friendly R290 refrigerant. The R290 is being used by
some of the largest beverage manufacturers in India.
What, according to Emerson, is important while talking about smart cities?
When
would a city be truly smart? A smart city is an efficient co-existence
and convergence of institutional, social, physical and economic systems
and infrastructure that ultimately enhance the quality of urban life. In
a smart city, each of the systems (institutional, social, physical,
economic) will be self-sufficient and sustainable and would be designed
for efficient inter-system interaction. Timely access to basic resources
like water and electricity, implementation of systematic processes like
planned-garbage-disposal and real-time traffic diversion and reliable
infrastructure like communication networks and mass-transits would form
the backbone of such superior systems.
Unfortunately in an
average Indian city today, most of the basic systems are present in a
rudimentary manner. As an example, take the city water lifecycle.
Potable water as a basic resource faces supply crunch in peak summer
months, insufficient waste water recycling processes lead to unnecessary
wastage, and absence of rain-water drainage and harvesting
infrastructure wreaks havoc in the rainy season. A smart city would
continuously evolve and respond positively to needs and changes of its
citizens.
What is your market share globally? What are your plans to ramping it up?
Emerson
recorded sales of $24.5 billion in 2014, maintaining a CAGR of 4 per
cent for sales in the last five years. We do not disclose our market
share.
How does Emerson see itself growing in thermal power sector?
In
power generation, there is a substantial demand for the adoption of
supercritical steam technology. This is driven largely by the need to
minimise the environmental impact by achieving higher efficiencies of
energy conversion. Power generation by coal as a fuel is around 55–65
per cent of the total power generation in India. Emerson’s offerings
include state-of-the-art plant control systems, wireless measurement
devices, and machinery health management systems for supercritical
thermal power plants.
Please elaborate on investments made in R&D globally?
Behind
Emerson’s progress in industrial technologies is an expansive network
of R&D professionals that identify issues before they become
problems. Emerson Advanced Design Center (ADC), based in Columbus, Ohio
(USA) within the Battelle Memorial Institute campus (whose labs operate
the largest R&D consultancy in the United States), focuses on
developing and maintaining a ‘go-to’ network of external resources to
assist in new product development for Emerson’s global businesses. The
centre’s main objective is to gather a world-class group of experts who
can analyse a project before it gets off the ground and assess technical
risk.
Umesh M Avvannavar and Shreyas N, April 15, 2015, DHNS
Making a comeback
Hyundai Motor India, the
country’s second-largest car manufacturer and the largest car exporter,
is known for its attention to detail. The revamped 4S Fluidic Verna has
lived upto the expectations of not only Indian customers, but also the
global audience.Verna 4S is looking to further redefine Hyundai’s
automotive excellence in India in the sedan segment for the stylish
customer.
4S really stands for Style, Safety, Speed and
Sophistication. Hyundai Verna was already powerful and known for its
safety. With the facelift, Hyundai has added a bit of spark in the
styling and sophistication department. Hyundai’s experiment with the
Verna facelift is very evidently intended to make a strong point in the
sedan segment, more so because of the stiff competition from rivals in
the niche. Verna has always maintained its market lead in the C-segment
sedan class and this new breath of life could propel the Verna to new
heights. Exteriors get a makeover
The
exteriors have undergone a total revision. What is the big change? Well,
the front and the rear exterior design gets more polish for one. The
front of the new Verna 4S is brand new. It gets a handsome horizontal
chrome grille, coupled with a new angular pair of focal headlamps and
re-positioned fog lamps. With the new Fluidic version 2.0 design
philosophy, Hyundai has added more value to the new Verna. The rear of
the car gets LED treatment for the taillights, though the concealed
exhaust makes the rear bumper look large. The 16-inch diamond cut alloys
are retained in the new Verna 4S.
The Fluidic version 2.0 design
philosophy makes the revised Verna 4S look a lot like its elder
sibling, the Sonata. However, the car retains its predecessor’s
silhouette, which makes it easily identifiable as a Verna. The creases
along the side profile and the character line on the bonnet have been
reworked, giving the car a fresh appeal. Ergo Lever does the job
The
interiors do not see much of a revision except for the updated 1-GB
onboard memory to store songs, and the new ‘Ergo Lever’ at the front
passenger seat which saves trouble for the rear passenger in requesting
the passenger in the front to move his/her seat forward to make some
knee room at the rear.
This lever placed at an arm’s length of
the rear passenger does the job. The rear seat armrest is also revised
with twin cupholders. The under-thigh support is much better and
comfortable on long journeys. The upswept windows at the rear, however,
is an acquired taste as you also sit much lower to the ground. It is a
nice cabin to be in on long journeys.
We liked the manual
gearshift indicator which signals you to change gears. When you are in a
hurry, you may not agree with the shift indicator, but when you are
trying to be politically correct, well, that helps. The car sadly misses
out on the rear A/C vents but makes up for safety as it gets ABS as
standard throughout the range and gets six airbags as standard on the SX
variant. The steering wheel still feels lighter in low speeds but gets
better when nearing triple-digit speed. Having said that, the feedback
is quite low and the body roll creeps in while cornering at high speeds.
Hyundai, to infuse driving confidence, now gives ABS as standard across
all variants.
Potholes and bumps are not felt that often as the
suspension setting is further tuned to offer a more comfortable ride at
high speeds. But the Verna 4S misses out on rear-disc brakes in the
manual gear-shift variants. It is an everyday car, responds well to
lower city speeds, and drives smoothly on the highways.
The new
Verna 4S 1.4-litre petrol variant is priced at Rs 7.83 lakh and the
1.6-litre petrol variant is priced in the Rs 9.94 lakh to Rs 10.27 lakh
range. The Petrol automatic variant is priced at 10.23 lakh.
The
diesel 1.4-litre variant is priced at Rs 9.06 lakh and the 1.6-litre
petrol variant starts from Rs 9.94 lakh and goes up to Rs 11.60 lakh.
The diesel automatic variant comes at Rs 12.34 lakh (all ex-showroom
Bengaluru prices).
Choice of engine specs
The
new Verna gets the familiar 1.4- and 1.6-litre VTVT petrol units
producing 106 and 121 bhp respectively, and a five-speed gearbox. The
diesel Verna also retains the tested oil-burner, the 1.4- and 1.6-litre
CRDI diesel units, churning out 89 and 126 bhp respectively with a
six-speed transmission. Both the 1.6-litre diesel and the petrol engines
get a four-speed automatic transmission. With a variety of engine
specifications to choose from and with Hyundai offering ABS on all
variants, the 4S Verna is marking its territory in the C-segment.
Umesh M Avvannavar and Hrithik Kiran Bagade, April 15, 2015, DHNS
Indian customers’
obsession with ‘Kitna Deti Hai?’ is no secret. During the years in which
fuel costs went soaring, the entry-level customer felt the pinch and
the sales of entry-segment cars took a beating. Fuel efficiency,
therefore, is the top priority for MSIL
Indian
automobile market leader Maruti Suzuki India (MSIL) prides itself on
continuously working towards improving the fuel efficiency of its
models. It also places a premium on adopting the latest in technology.
In an email interaction with Deccan Herald’s Umesh M Avvannavar,
MSIL’s Executive director, Engineering, CV Raman, talks about the
latest developments on the fuel efficiency and technology fronts.
Suzuki
has furthered its commitment in the realm of fuel efficiency of its
cars. Please explain the company's push in the area of fuel efficiency,
and also a note about the different technologies displayed at the Geneva
Motor Show?
Yes, Maruti Suzuki has consciously worked
towards improving fuel efficiency of its models across all segments. All
successive recent launches such as the new Alto K-10, minor changes of
DZire and Swift, Ciaz, etc. are offering class- leading fuel
efficiencies. It surely demonstrates Suzuki’s commitment to retain its
leadership in fuel efficiency.
Next generation technologies
showcased at the Geneva Motor Show 2015 also demonstrate Suzuki’s
capability towards enhancing fuel efficiency. Going forward, we will
work towards bringing some of these technologies to India to retain our
edge. Pegged as environmental technologies, these have been developed
under three themes — upgrading body design, increasing powertrain
efficiency, and energy management. These technologies will not only
enhance fuel efficiency, but also raise vehicle performance.
New Generation Platform
Suzuki’s
new-generation platform is designed to efficiently increase rigidity
while reducing weight via a fundamental redesign of the under-body’s
structure and also optimising overall vehicle design. This improves fuel
efficiency, safety, handling, stability and NVH performance across the
board. Suzuki showcased it in concepts iK2 & iM-4.
BOOSTERJET
is a 1.0-litre direct-injection turbo engine newly developed by Suzuki.
It has been optimised to meet the rigorous size and weight requirements
of compact cars.
Innovative SHVS (Smart Hybrid Vehicle by
Suzuki) mild hybrid system incorporating an ISG (integrated starter
generator), provides engine power assistance using the motor and
achieves efficient power regeneration. The SHVS system features
lithium-ion batteries. Coupled with a newly-developed high-efficiency
ISG, this regenerative braking system is the perfect hybrid system for a
compact car. As well as improving fuel efficiency, it also keeps down
the size, weight, and cost.
How does MSIL view fuel efficiency as a differentiator while competing in a price-sensitive car market such as India?
Cost
of ownership, which includes the cost of running a car, is one of the
key determinants for consumers. The company continues to innovate and
adopt new technologies that help in achieving higher fuel efficiency
targets, while keeping the offerings affordable. Some recent examples
that demonstrate our capability in this direction are as follows:
New DZire offers fuel efficiency of over 26.59 (India’s most fuel efficient offering in diesel; launched in Feb 2015)
New Alto K10 delivers 24.07 kmpl, which is an improvement of over 15% (launched Nov 2014)
New Swift Diesel offers a fuel efficiency of 25.2 kmpl, improvement of over 10% (launched October 2014)
New Swift Petrol with 9.67 % improvement returns fuel efficiency of 20.4 kmpl (launched October 2014)
Ciaz Diesel returns a fuel efficiency of 26.21 kmpl that is best in class (launched October 2014)
One
of the biggest challenges before automatic transmission is compromised
fuel efficiency when compared with manual transmission. With Celerio
auto gear shift, Maruti Suzuki was successful in bringing auto gear
shift technology convenience with no compromise on fuel efficiency.
Describe
the Indian market’s relationship with mileage? MSI’s ad campaigns
highlight the importance of mileage and the company’s seriousness in
providing good mileage as a feature. How is Maruti maintaining its
resolve in assuring good mileage to its cars?
Indian
customers’ obsession with ‘Kitna Deti Hai?’ is no secret. During the
years in which fuel costs went soaring, the entry-level customer felt
the pinch and the sales of entry-segment cars took a beating. When fuel
prices corrected last year onwards, there were improvements in
first-time car buyer percentage for Maruti and the industry. Having said
that, while automakers have little role to play in controlling fuel
prices, we surely can work towards making our offerings more fuel
efficient.
Several innovations by Maruti and Suzuki engineers
to improve fuel efficiency include changes in engine hardware leading to
improved thermal efficiency, reduced frictional losses, and changes in
engine calibration. While the compact combustion chamber and higher
compression ratio on gasoline engine helps to improve engine efficiency,
the advanced thermal management system in diesel engine, along with
low-friction engine oil and modified fuel injection system, help diesel
engines in faster warm up and lower the frictional losses.
There
are many competitors in the market offering good mileage as a major
feature in their cars (in both petrol and diesel). What differentiates
Maruti in this regard and why?
Maruti is a segment
leader in all the segments where MSIL is operating. Sharing some recent
examples where we are clearly class leaders:
Model/Segment
Petrol
Diesel
Position
Segment A1
Nano
25 km/l
Segment A2 (Mini)
Alto 800
22.74
Alto K10
24.07
Segment leader
Segment A2+
Swift
20.4
25.2
Segment leader
DZire
19.1 to 20.85 ( facelift change)
23.4 to 26.59
DZire diesel becomes India’s most fuel efficient car
Ciaz
20.73
26.21
Segment leader
As
you can see, we are clear winners. Maruti Suzuki’s product development
approach for enhancing the cost of ownership or reduction of CO2 has
been in in two main areas:
1. New Technology Development
2. Alternate Fuel Vehicle Development
New Technology Development
While
designing any new model, our focus is to bring down total cost of
ownership for customers. The company has defined ‘cost of ownership’ as a
combination of initial price, running cost (fuel efficiency, cost of
servicing, cost of spare parts,) and residual cost. Through continuous
improvement, we have been able to enhance fuel efficiency of our fleet
to bring down running costs. The mandate is to enhance fuel efficiency
of all fuel types so that the customer is benefited. We are able to
enhance the fuel efficiency by working on the following parameters:
Power train related improvements
Weight reduction
Improvement in aerodynamics and tyres to reduce road resistance (Road load reduction)
Alternate Fuel Vehicle Development
The
Company offers six models in the bi-fuel segment (petrol+
factory-fitted CNG) — Alto, Alto K-10, Wagon R, Celerio, Eeco, and
Ertiga.
The company has been working on development of alternate
fuel models since 2000. The company has sold over 4.1 lakh vehicles
which have offset around 2.24 lakh tonnes of CO2 cumulatively till March
2014.
What are the technological advancements that MSI has achieved in terms of fuel efficiency in its models?
MSIL has been able to enhance the fuel efficiency by working on the following three parameters:
1. Power train related improvements
2. Weight reduction
3. Road load reduction
Power train related improvements
We
have been working in the areas of thermal efficiency, friction
reduction, smart calibration, and electric load reduction to enhance
fuel efficiency of our vehicles. Because of our continuous efforts, we
have enhanced the fuel efficiency in our line-up. A recent example is
the Alto 800 fuel efficiency improvement. Fuel efficiency in Alto 800
gasoline was improved from 19.7 kmpl to 22.7 kmpl (+3 kmpl) which is a
significant improvement of 15%. Similarly, for the CNG version, it was
improved from 26.8 kmpl to 30.5 kmpl. This improvement was possible due
to major changes in intake system and crank system in the proven F8D
engine in order to bring out an eco-friendly car with the following
system-level changes:
Intake system changed from aluminium to plastic
Light weight and low-skirt piston
Low-tension piston rings
Light weight con-rod and crankshaft
High compression ratio
Weight reduction
Reduction
in weight is being targeted by automakers in order to achieve higher
fuel efficiency to compete in the market. This is being achieved by us
in the following manner:
Use of high tensile material for making
body structure, and TWB (tailored welded blank) in body closures. Use of
polymeric fuel tanks, lighter batteries, use of optimised
specifications at component level for weight reduction such as battery,
starter motor, ABS etc. Some examples are as follows:
In Swift
We used light weight battery weighing 500 gm lesser than the earlier version.
Introduced
new generation light weight anti-locking braking system. Compact and
light, weighing 15% less compared with ABS used in outgoing model.
Deployed light weight speakers; weight reduction of 1 kg/vehicle.
Steering
lock material change — body material changed from conventional zinc
alloy to magnesium alloy. Weight reduction of 400 gm/vehicle.
Six-layered
light weight polymeric fuel tank; 30% lighter than conventional sheet
metal fuel tanks. Lower weight, better fuel efficiency, better
corrosion, and crash-resistant properties.
In Celerio
Over
11 kg weight reduction achieved in powertrain by use of plastic fuel
rail, intake system weight optimisation, lighter engine mountings,
plastic fan shroud and plastic fuel tank.
Over 15 kg weight reduction of body and doors through structure optimisation.
Increased use of high tensile steel.4.5 kg weight reduction by optimising thickness of interior trims.
Light weighting in chassis systems with weight reduction of 4.5 kg.
Road load reduction
Extensive
use of CFD analysis is being done for reducing the coefficient of drag
(Cd) for our vehicles. In our recent offering Alto 800, the coefficient
of drag Cd was reduced by 6 per cent to enhance the fuel efficiency.
There
has always been a debate between petrol and diesel cars surrounding the
reliability and longevity of their respective engines. What are MSIL’s
thoughts about the said preferences? How has that view shaped the way it
designs and offers products to the Indian customer?
Both petrol
and diesel engines being manufactured today are of top quality. The
buyer decision for the fuel choice is based on extent of monthly
driving. The customer may choose a petrol car if his daily running is
say less than 40 km. Typically, diesel offerings by nature are more
fuel-efficient but priced higher than gasoline. Customer takes a valued
call on the basis of daily running and cost.
The world is looking
at a future involving solar, hybrid and electric cars, among other
‘renewable’ and eco-friendly modes of transport. How does MSIL view this
potential change in the years or decades to come? Going forward, will
your innovations be geared towards sustaining the prevailing trends?
Please explain.
There are two parts to this question a) first
developing capability know-how or technical expertise to design such
products; and b) infrastructure support for these technologies.
In
recent years, the company has displayed its capability and know-how on
several occasions. Maruti Suzuki has partnered with the government under
the National Electric Mobility Mission Plan (NEMMP) 2020 and showcased
models like Swift Range Extender Electric Vehicle (Swift RE-EV).
Similarly the company had undertaken experimental projects in the field
of hybrid and electric during the 2010 Commonwealth Games and showcased
SX4 Hybrid and Eeco Electric.
Also Maruti Suzuki was the first
company to bring factory-fitted CNG technology called the i-GPI
(Intelligent Gas Port Injection Technology.
Therefore, the
capability exists. But on the second part, which is infrastructure
support, we are still a long way off. We appreciate the government’s
efforts in popularising these technologies. But commercial success would
rest on long-term infrastructure.
For instance, Swift RE-EV is
an electric vehicle with an engine-driven generator. The vehicle
functions like a pure battery electric vehicle (BEV) for customers who
commute short distances. Once the battery power gets depleted, the
onboard IC engine starts functioning and runs the generator for
supplying power to the electric motor, thereby eliminating the ‘range
anxiety’ issue generally associated with BEVs. The vehicle can be
charged at home from a household power outlet.
In essence, the
Swift RE-EV provides an advantage over pure BEV as it overcomes the
issue of battery charging/range limitation, thereby providing required
flexibility and peace of mind to customers. Its range can be extended by
using an onboard generator, which is powered by a small and efficient
gasoline engine. Therefore, the user can turn a short trip into a longer
excursion without worrying about the battery.
Compared with a
pure BEV that depends entirely on battery power, the Swift RE-EV has a
smaller battery that’s quicker to charge, weighs less, and uses fewer
resources. We are ready but need more support from the government to
make these viable.
Umesh M Avvannavar, April 16, 2015, Bengaluru, DHNS
APL Apollo Tubes, one
of the largest manufacturers of ERW (electric-resistance welded) steel
pipes in India, aims to cross 10 lakh-tonne production capacity this
financial year, a top executive said on Thursday.
Talking
to Deccan Herald, APL Apollo Tubes Chairman Sanjay Gupta said, “As on
today we have around 8.4 lakh-tonne capacity. We plan to augment it by
two lakh tonnes this financial year.”
The expansion will take
place in all the existing five plants at an estimated cost of Rs 100
crore, which would be funded from mostly internal accruals. The two
plants at Hosur (near Bengaluru) which has a production capacity of
around 3.5 lakh tonnes, will get additional lines to take the capacity
to about 4.5 lakh tonnes. This will be the largest single location
facility anywhere in India. In addition, other plants at Murbad (near
Mumbai) and two in Sikandrabad (near Delhi) will also get additional
facilities.
Till date an investment of around Rs 500 crore has
been made in the company. The company employs around 1,200 people and
plans to increase the workforce by around 100-150 in the current year.
It markets over 80 per cent of its products through over 400
distributors spread in tier-II and tier-III cities, apart from metros.
The company has been growing at above 25 per cent CAGR for the last
seven to eight years. This has been made possible due to a wide range of
products covering over 400 types, the largest for any producer.
The
company, which enjoys a market share of over 10 per cent in a 60
lakh-tonne market, plans to increase the share to about 15 per cent in
next two years. This will make it one of the top ten largest ERW steel
pipe producers in the world.
Apart from the domestic market, APL
Apollo has a strong presence in Europe, USA, Middle East, Sri Lanka and
Australia. Currently about seven per cent of the company’s production is
exported. APL Apollo expects a growth of 25 per cent in its topline of
Rs 2,800 crore in FY2014.
HDFC Mutual Fund, IDFC Mutual Fund, DSP
BlackRock, FIL Investment, Emblem, Kitara Capital, et al hold almost 35
per cent stake in the company. Vallabh Bansali and family hold another
six per cent.
Gupta was in the city to launch colour-coated pipes
for the first time in India, which will be produced at the company’s
Murbad facility. The pipes claim to have superior finish and longer
life, apart from being environmental friendly, since they will be
pre-painted at the factory under controlled conditions. The
colour-coating machines for the same have been imported from Turkey.
CFA Institute, the global association of
investment professionals, will partner with SBI Mutual Fund for
‘Adoption of Asset Manager Code and Investment Performance Standards’
very soon, a top executive said.
Talking to Deccan
Herald, CFA Institute President and CEO Paul H Smith said, “We have
1,000 companies worldwide which have adopted CFA’s Adoption of ‘Asset
Manager Code and Investment Performance Standards’ which we think is
absolutely vital.”
Smith added, “If you make people every year
read the code of conduct and sign the statement, then, they actually
behave better. Having a code of conduct gives the guidelines for
everybody within the business to work within and essentially, those
guidelines put your investor interest above your own.”
SBI Mutual
Fund is the first major domestic asset manager to tie up with CFA
Institute for the code. “We are very proud and excited of that. Actually
we are celebrating the fact in Mumbai very soon,” Smith added.
Seeking business
Every
CFA charterholder has to sign a professional code of conduct at the
individual level. Now the asset manager code takes that to the corporate
level. “In a nutshell, you are telling your customer that you are
abiding by a properly defined standard of conduct when you go out and
seek business,” he said.
For instance, SBI Funds Management is a
joint venture with AMUNDI (France), one of the world’s leading fund
management companies. “If they go and pitch for the mandate to manage
funds from pension funds abroad or in India, compliance to the asset
manager code will be a plus,” he pointed out.
“The CFA institute
is present in India since 10 years and has 1,400 members and about
20,000 candidates in India. Globally, it has about 2.25 lakh members,”
said Vidhu Shekhar, country head, India.
The Claritas Investment
Certificate is the newest education programme offered by the CFA
Institute. About a dozen Indian companies have opted for this programme.
On the litigation with the ICFAI University, Shekhar said the matter
was settled three years ago. “After an out-of-court settlement with
ICFAI University, they have not been offering their programme for quite
sometime now,” he said.
“Globally, India is the third largest
market after US and China for CFA. India is one of the fastest growing
important markets for us. We don’t look at things in terms of dollars,
we look at where we can market and where we can have impact and India is
one country where we feel strongly that we can work with regulators,
industries, and companies to build a framework. That’s why we have built
our office in Mumbai to help our charterholders to work with
regulators,” Smith said.
According to him, KPO (knowledge process
outsourcing) and BPO (business process outsourcing) sectors are growth
areas not only in India, but for the entire global financial services
industry. He noted that more and more mainstream investment banking is
being outsourced to India.
“Because of this work coming from
outside, there is a huge need for domestic investment professionals in
the country,” he said. There is lot of support work being done in India,
including things like performance reporting and management, he noted,
and pointed out that fund managers are appointed by pension funds
sponsors.
Umesh M Avvannavar, Bengaluru, April 22, 2015, DHNS:
Nikon India, the 100 per cent subsidiary
of imaging technology leader Nikon Corporation, is planning to
aggressively promote its brand in India, for which the company has
earmarked a Rs 100-crore capital expenditure (capex) plan, a top
executive said.
Talking to Deccan Herald, Nikon India
Managing Director Hiroshi Takashina said, “We entered India in 2007 and
were a late entrant compared with our competitors. But thanks to the
support from our customers, we could expand our business. Over the years
our market share has increased rapidly.”
“This year, our capex
plan is about Rs 100 crore, which includes advertisements in print, TV,
digital media, and radio. Additionally, we will promote the brand in
outdoor, above the line (ATL), dealer meets, points of purchase (PoP),
dealer engagements, etc. Currently, we have 4,500 retailers across
India, which is the largest in the industry. We have plans to add close
to 200 shop-in-shop dealers outlets within MBOs (multi-brand outlets),”
Takashina added.
Nikon today has five branches, 120 COOLPIX
(compact cameras) and D-SLR zones, 32 authorised service centres, and 64
Nikon collection centres across India.
Market size
He
said the total market size of compact cameras in India is just 12 lakh,
while it is 3.5 lakh for D-SLRs. Takashina claims market leadership for
Nikon based on the unit import numbers during the January 2014 to
December 2014 period.
According to him, in D-SLR and C-DSC categories, the company has 55 per cent and 45 per cent market share respectively.
“We
are very well networked. Our shop-in-shops are present not only in
metro cities, but even in upcountry towns like Kota, Sarangpur,
Bhagalupur, etc.,” he said.
Nikon India’s contribution accounts
for only three to four per cent of the company’s global revenues,
compared with US (25 per cent), Europe (25 per cent), and China (10 per
cent). Takashina saw great potential to increase market share in China
and India, considering their market size.
In India, the Western
region (Mumbai) contributes the highest sales with 35 per cent, followed
by North and South (25 per cent) each.
Takashina was in the city
to inaugurate Nikon’s relocated branch office for the South, which is
equipped to provide support with sales, service, customer support, and
technical teams under one roof.
Nikon upset about customs duty
Nikon India Managing Director Hiroshi Takashina is upset about the 10 per cent custom duty levied on digital cameras, “We are facing lots of difficulties from February 2014. Without any clear explanation, the customs duty has been increased to 10 per cent which is against the WTO definition. India is the only country in the world with uncertainty in the tax structure due to the 10 per cent customs duty levy. We are paying under protest, and want to recover it. I only hope that the Modi government will withdraw the decision.”
The company’s vice president (imaging) Sajjan Kumar added, “Digital still image video cameras are primarily for shooting still images and should not be classified as video camera. Effective February 2014, customs authorities suddenly started charging additional 10 per cent basic customs duty, from the earlier zero.”
For some firms, the topline gets impacted. For
others, there is an impact on net income. For yet others, their balance
sheet changes
Sai Venkateshwaran is
Partner and Head (Accounting Advisory Services) for KPMG in India. As a
member of the National Advisory Committee on Accounting Standards
(NACAS), he was closely involved in India’s efforts towards convergence
with IFRS. He recently sat down for a discussion with Deccan Herald’sUmesh M Avvannavar about corporate India’s transition towards the recently notified Ind AS accounting standards.
Tell us about the Indian accounting standards (Ind AS)?
Indian
companies currently follow Indian GAAP and the current set of standards
are fairly outdated, in the sense that the last changes in the
accounting standards were made 15 years back. Indian GAAP is not fully
equipped to deal with all the changing complexities, and as a result,
financial statements do not necessarily portray information in the best
manner.
This is why over the last 7-8 years efforts are being
made to converge with IFRS and it has now become a reality with the Ind
AS being notified. It is now a part of the corporate legal framework and
companies will need to adopt the standards.
What are the major changes in Ind AS from Indian GAAP?
There
are three broad areas where we are making a significant leap. These
include (i) revenue recognition; (ii) financial instruments; and (iii)
standards around mergers and acquisitions (M&A).
For some of
the companies, the topline gets impacted. For others, various elements
of costs get impacted, so overall there is an impact on the net income.
For
yet others, their balance sheet characterisation undergoes a change —
like equity becomes debt, fixed assets may probably become financial
assets or intangible assets, etc.
Effectively, Ind AS would help
better reflect the substance, rather than the mere legal form. For
instance, if a company has raised money from private equity, using
preference share capital or equity shares, today all that is classified
as part of share capital but there are underlying obligations that the
company has, including giving an assured return, or to buy back shares
3-5 years down the line, or provide an exit route, etc.
With
these kind of obligations involved, these shares are in effect not part
of your equity, but instead should be part of your liabilities. So under
the new standards these get covered under liabilities, instead of
equity.
Similarly when you are doing an acquisition, there is
very limited guidance under the existing Indian GAAP and again if you
look at today’s activities lot of companies’ valuations are being driven
because of the intangibles they have which could be their technology,
their customers, or their unique relations, and these are not reflected
in the financial statements. Under Ind AS, you recognise these as part
of the balance sheet rather than put everything to goodwill. It will
lead to more transparency on financial reports and performances.
From when is Ind AS applicable for companies?
It
is already applicable. The companies that get covered under phase-I
will need to be reporting for Financial Year 2016-17 under Ind AS, but
when they do that they also need to give a comparison for the previous
year, which is from April 1, 2015, onwards.
So effectively for a
listed company, from their June 2015 quarter onwards they need to be
preparing quarterly information according to Ind AS. Therefore, the
phase-1 companies are very much in the Ind-AS reporting framework.
There’s
also a possibility that some companies would do a voluntary early
adoption for the year 2015-16 in which case they’ll also need to present
their previous year, i.e 2014-15 according to the new standard for
comparison, and so are they are already in their first reporting period.
Are these rules only for listed cos?
It covers unlisted companies as well. Broadly, the roadmap covers entities that have a net worth more than Rs 500 crore in phase-1 and the remaining listed companies and unlisted companies with net worth more than Rs 250 crore
in phase-2. It is not just these entities, but also any other related
group entities. For instance, you have a subsidiary with a Rs 10 crore net worth.
That
entity will also need to adopt these standards for their own statutory
reporting. So it’s not just impacting the large company, but every
individual small company within the group.
What are the big challenges you’ve seen in this?
One
is dealing with the change in the financial reporting itself. For
instance, today if you have a particular net worth, particular net
income, etc., under the IFRS, those numbers could be very different.
Then there are both internal and external changes that get triggered.
Internal changes are how you go about generating those numbers: do you
have enough information, do you need to look at external dependencies,
do you need to train your people, etc. So a number of internal people
issues, process issues, technology issues (you might need to change your
ERP or do an ERP re-implementation), and so on. All these just to
generate the information. Once the information is generated, then
there’ll be external issues: for instance, does your banker understand
what are these changes? For example, your banker has given you a loan
based on a particular covenant that you need to maintain a debt-equity
ratio, let’s say 2:1. Now based on these standards, if your debt-equity
ratio changed, what happens to your loan agreement? Again, do your
investors understand this information? For instance, you have been
historically reporting a particular level of growth. With all these
changes, if your EPS is going to be lower, do your investors understand
that? Or are they going to assume that a lot of value has got eroded?
You need to educate the whole investor community as well. So there are a
number of challenges before it gets to ‘business as usual’ for
companies.
You said it is about 15 years since the last standards were issued?
Around
2000 was when the last set of standards (AS29) were issued. If you
look at Indian GAAP, there are around 29 standards. The last batch was
released around early 2000.
Why has India been slow?
It
could be because around 20 years back we had only about 15 accounting
standards. And from there we did a quantum leap and introduced the
additional 14 standards over 4-5 years. Around 5-6 years later we
started talking about convergence with IFRS, i.e. 2007 onwards, and it
was expected to be adopted from 2011. But that got derailed for a number
of reasons. And because we were working on Ind AS standards we did not
do anything about the existing standards. That is the reason it took
time.
How different is IFRS from Ind AS?
We
haven’t straightaway adopted IFRS standards. We picked those standards,
made modifications to make them more suitable for India, and then
adopted them.
Which are the sectors that would get impacted?
There are a number of sectors that get impacted and each one gets impacted in a different manner.
Technology. The
timing of revenue recognition could change. They also get impacted by
standards around stock options because technology companies typically
use a lot of stock options for compensation. So that now results in a
higher hit to the profit and loss (P and L) on a period-on-period basis,
because it’s now going to be on the basis of the fair value of the
option. They also get impacted because of the standards around
consolidation and M&A, because lot them tend to grow through
inorganic means, they do acquisitions, etc. Today, a lot of the value
paid for the acquisition is put into goodwill and going forward that
goodwill will be broken down into certain finite and indefinite life
intangibles or other tangible assets, all of which are recognised at
their fair value, and, therefore, a higher amortisation would have to
periodically recognised into the P&L rather than sit as an item of
goodwill.
Real estate and infrastructure. Lots
of their funding arrangements are complex. Lots of them have got these
SPV (special purpose vehicle) level of funding with private equity funds
or other investors, etc. A lot of them will get reclassified from
currently being shown as equity to possibly debt type arrangement with
the corresponding cost going to P&L. So significant impacts on their
debt-equity ratio and their profitability ratio. There could also be
cases where, since they are set up with complex SPV structure with
different types of rights given to investors, etc., a lot of them will
get consolidated going forward. Or some of them could be treated as a JV
(joint venture), if the investors have the veto right on critical
decisions. Therefore, the whole universe of what gets consolidated or
not could change. There would also be situations where you have kept
entities out of consolidation by keeping them at 49 per cent shareholding. In
substance, if you control these entities under the new standards you
will actually be consolidating them. So there could be new entities
getting consolidated, and vice versa.
Infrastructure. Some
of the companies in public-private partnerships (PPP), the ones
building airports, roads, power utilities so on. For them, the
accounting may be very different. Liketoday, creating roads, airports,
etc. are shown as fixed assets (FA) on their books. But going forward
that FA will be replaced by intangible assets, if what they have is the
right to collect fees from users. Like, every time you fly in and out of
a new airport you are paying UDF, which is effectively the fee being
collected for the use of the facility; or for instance each time you are
going on a new highway, the toll you are paying to the various toll
operators, which effectively is the right of the operator to collect the
fees. So therefore, what is today classified as a fixed asset can
actually become an intangible asset, because it’s an intangible right to
collect fee from users. From that sense there could be
re-characterisation of assets.
General manufacturing. For
them, the capitalisation of costs on fixed assets could be very
different. Under Indian GAAP, you have ended up capitalising a lot of
overheads, indirect costs and foreign exchange fluctuations to fixed
assets. Going forward, you will not be allowed to capitalise forex
fluctuations, and you will not be allowed to capitalise the indirect
overheads which get loaded on to the cost of the fixed asset. So in
those periods when they are constructing the assets, there will be a
greater hit to the P&L, and the total value you attribute to fixed
assets and carry forward will be much lower. There will be a lot of
other common issues like business combinations and complex funding
arrangements.
Telecom. Under
the new standards you will need to allocate your revenues differently
for the handset, plan, etc. The way you recognise revenue and
information of each of these would be very different.
Pharma and
consumer products. Typically, a lot of these companies use third-party
manufacturing facilities, which may be running on a dedicated basis and
under long-term arrangements. Whether this is a manufacturing
arrangement or in substance a lease would be a key question to consider.
How can companies equip themselves for this transition?
The
best way to manage is to start right now. We are already a month into
the new framework. Companies need to first do an impact assessment,
clearly understand the impact of the 39 standards that can come in.
Essentially, a holistic study looking at overall impact on people,
technology, processes, business related issues and of course the pure
accounting change itself. Once this assessment is done, companies should
look at getting the standards implemented over the next 12–18 months to
ultimately make it business as usual.
How prepared is India Inc to adopt the new accounting standards?
Based
on our interactions with companies and a recent survey done by us,
companies feel a lot more prepared this time around compared with the
2011 experience. Having said that, many companies are still at the
impact assessment stage and very few have started implementation. At
least there is greater appreciation around the standards and its impact
this time!
Umesh M Avvannavar, BENGALURU, April 27, 2015, DHNS:
To apply for a branch licence for life/non-life reinsurance Swiss Re Shared Services (India), a subsidiary
of Zurich-based world’s second largest re-insurer Swiss Reinsurance
Company, is planning to hire 300 employees in the next three years, a
top executive said.
Talking to Deccan Herald, Alok
Kumar, Managing Director, Swiss Re Shared Services (India), said: “India
is one of Swiss Re’s key high growth markets and we are committed to
the healthy and sustainable growth of India’s insurance market. In
India, we have established Swiss Re Shared Services in Bengaluru since
2001 and opened a service company in Mumbai in 2002.”
He added,
“Here in Bengaluru, we operate a global centre of excellence that offers
a wide range of services to support Swiss Re’s business worldwide. We
have close to 600 employees in our Bengaluru centre. This centre of
excellence is expected to grow by another 50 per cent over the next
three years supporting growing talent need for some of the most complex
processes of our global business. We would continue to build our
capabilities in actuarial, costing, risk management, data analytics,
technology, technical accounting, and risk modelling, among others.”
He
said Swiss Re welcomed the recent passing of the Insurance (Amendment)
Bill, 2015. “Swiss Re intends to apply for a branch licence for life and
non-life reinsurance once the regulations and requirements are
available,” he said.
The Swiss Re Group saw a premium volume of $31.3
billion last year globally with an eight per cent growth. The company
follows calendar year accounting.
On asked about the importance
of the Indian market, Alok said, “India is among the five high growth
markets for Swiss Re along with China, Indonesia, Mexico and Brazil. We
will focus on a number of high growth markets in all regions and we
expect to profitably grow our share of business from these markets to
20-25 per cent by 2015. In 2014, we already achieved this target with 21
per cent of premia earned and fee income from high growth markets.”
He
said the company will make the necessary investments and increase
resources to support the industry growth. According to him, the Indian
insurance industry is poised for strong growth as premia will more than
double to Rs 9.8 trillion by 2020 from Rs 4.3 trillion in 2014. Overall
the insurance industry will grow at a real CAGR of 8.3 per cent (14.7
per cent in nominal terms) between 2014 and 2020, he said.
On
Monday Swiss Re signed an MoU with BIMTECH, a private insurance
institute in India, to collaborate as a technical partner in its
Postgraduate Diploma in Management (Insurance Business Management)
programme, the first-ever by a re-insurance company in India.
The MoU
was signed by Alok Kumar, MD, and Amit Kalra, head (strategic
initiatives), Swiss Re Shared Services (India) and H Chaturvedi,
director, BIMTECH.
How re-insurance works
Re-insurers
insure the risk of the insurance business. Insurance companies try to
protect themselves from huge claims on account of earthquake, flooding,
etc., by taking re-insurance. For example, Hurricane Katrina which hit
the US resulted in $60 billion of losses in today’s dollar terms. Swiss
Re supported major insurance companies to recover those losses. All
insurance companies face the risk of getting bankrupt.They have to
settle all the claims but since they have taken re-insurance, they
manage the risks. Swiss Re charges premia from insurance companies.
Umesh M Avvannavar, BENGALURU, April 28, 2015, DHNS:
MD Sharma: Bank aiming for 25% growth in bottom line
Public sector lender State Bank of
Mysore (SBM) is aiming at 10-12 per cent credit growth in deposits and
advances for the current financial year, a top executive has said.
Talking
to Deccan Herald, State Bank of Mysore Managing Director Sharad Sharma
said, “We are aiming for a minimum of 10-12 per cent credit growth in
deposits and advances. Moreover, we plan to reduce the cost to income
ratio below 50 per cent and improve profit by 20-25 per cent.”
SBM
recently reported a 27 per cent rise in net profit at Rs 136 crore for
the fourth quarter ended March, compared with Rs 107 crore in the
corresponding quarter of FY14. “If the economic scenario improves, in
terms of setting up of manufacturing capacity and big ticket projects
taking off, definitely the outlook will go up,” Sharma added.
Compared
with other major markets, the advantage of Bengaluru is that the
residential real estate sector here is more user-driven than
investment-driven. With RBI changing the priority sector guidelines, for
instance, up to Rs 28 lakh of housing loan in metro areas can be made
available with priority sector tag for a Rs 35-lakh budget project, he
said.
At a time when public sector banks have been hit by high
NPAs, SBM’s gross non-performing assets (NPAs) ratio declined to 4 per
cent compared with 5.54 per cent for the fourth quarter, and net NPA
slipped to 2.16 per cent compared with 3.29 per cent.
SBM has
opened 20 branches that are exclusively focused on MSMEs. The bank’s
advances to MSMEs for FY 2014-15 were at Rs 5,267 crore, compared with
Rs 4,524 crore for FY 2013-14, reflecting a y-o-y growth of 16.4 per
cent. To encourage MSME growth, the bank has partnered with NSIC.
When
asked about the impact of a weaker monsoon on agriculture, Sharma said,
“Instead of concentrating on crop loan, we will invest more in
polyhouses (naturally ventilated and climate controlled
structures/tunnels) and drip irrigation as water scarcity is a problem.
We are working closely with NABARD officials across Karnataka for
required inputs.”
‘Recycle’ machineRecently,
the bank tied up with Shriram Automall India (SAMIL) for disposal of
seized vehicles. To focus more on the Bengaluru market, the bank added
another new zone, taking the total to three, each headed by a DGM, and a
network GM for all three zones. For customer convenience, SBM is
planning to open a new centralised processing centre in Malleswaram,
Bengaluru.
The bank is also planning to introduce ‘recycle’
machines which accept cash deposit and provides ATM services, much like
an e-lounge.
SBM has 34 cash deposit machines, and 1,334 ATMs.
It aims to add 80 branches to the existing 1,015 and will hire 1,350 new
staff in the current financial year.
SBM cuts base rate by 0.25%
On
Tuesday, SBM cut its base rate by 25 basis points (bps) from the
existing 10.25 per cent per annum, to 10 per cent per annum, with effect
from May 1, 2015. The benchmark prime lending rate (BPLR) continues to
be at the same level of 15 per cent. Housing loan rates have been
revised to 10.10 per cent (from 10.30 per cent) and car loans to 10.50
per cent (from 10.75 per cent).
With sports bike enthusiasts mushrooming
in Bengaluru, Bajaj Auto is betting big on the sports motorcycle
segment with a number of launches in the 150 cc to 200 cc range, a top
executive said.
Talking to Deccan Herald, Bajaj Auto
President (motorcycle business) Eric Vas said, “As a city, Bengaluru is
the largest sports motorcycling market in the country. At an industry
level, in Bengaluru, around 5,000 units are sold every month. Karnataka,
which is the fourth largest sports motorcycling market, contributes
close to 10 per cent for Bajaj’s sports bike business. Maharashtra tops
the list for the sports bike market in the country.”
The super
sports segment today consists of 10 brands from different manufacturers
with less than one per cent share of the motorcycle market. Bajaj Auto
holds 43 per cent market share in sports bikes segment in the country.
With new launches of Pulsar RS (race sport) 200 and AS (adventure sport)
150, 200 models, the company aims to garner 50 per cent of market share
by December. Bajaj has an overall market share of 17 per cent and plans
to capture 20 per cent in the first half of the year.
“We have
lost some amount of margin in the mileage bikes segment. We will be
regaining it through our new products in the market. You will see the
change happening by the end of April,” Vas said.
Apart from
sports bikes, Bajaj Platina and CT-100 together sell 12,000 units
monthly in Karnataka. When asked about the plans for Karnataka, Vas
said, “We have launched Bajaj Platina electric start in January, 2015.
Karnataka customers had a long-standing request for a good entry-level
bike from Bajaj. We are selling more than 2,000 units per month. We have
reintroduced CT-100 in March and customers are happy.”
The
Pulsar RS 200, which was launched on March 26, is available only in 17
cities in India, including Bengaluru. Now, it will be available in
Mangaluru, Mysuru, and Hubballi very shortly. Bajaj Auto has 35 dealers
and 250 authorised service centres in Karnataka.
When asked on
expansion plans in Karnataka, Vas said, “Honestly, we are not looking at
expanding our network. No point in adding dealers just for the heck of
adding, like our competitors are doing. Our entire strategy is to sell
more units through the same dealers.”
Inspirational products
On
challenges, Vas said, “Fundamentally, today’s products are uninspiring,
especially in the 100 cc segment. One product is very much similar to
the other. I think it is a very un-inspirational kind of approach.
Inspirational products are the need of the hour. Our industry is going
through a significant decline because of some disturbances in the
economy. Now, we have to reverse this decline with new products.”
On
Wednesday, Bajaj Auto unveiled the Pulsar Adventure Sport series with
Pulsar AS 200 (Rs 92,723, ex-showroom Karnataka) and Pulsar AS 150 (Rs
79,949).
They are available in three colours — Red, Black, and
Blue. The company is targeting to sell 10,000 units per month across
India.
Hrithik Kiran Bagade, Umesh M Avvannavar, Bengaluru, May 04, 2015, DHNS:
Honda Cars India Senior Vice President (Sales &Marketing) Jnaneswar Sen
Ahead of the launch of the company’s third
generation Jazz hatchback, Jnaneswar Sen, senior vice president (sales
and marketing), Honda Cars India (HCIL), recently took time off to
respond to an emailed questionnaire from Deccan Herald’s Hrithik Kiran
Bagade and Umesh M Avvannavar. He also disclosed the company’s
strategies with regard to the B+ segment.
You are launching a new model of the Jazz in India. What are your expectations from this launch?
The
upcoming Jazz will be the third generation of the car and carries a
strong legacy. It is doing exceptionally well in all the markets where
it has been launched, including US and Japan.
Honda Jazz would offer
a very high value proposition coupled with premiumness to its
customers. The styling, look, performance and high versatility will be
key differentiator from its competitors. A fast evolving market which is
now receptive to the B+ segment shall provide a good platform for the
new Jazz.
How many units of the earlier model of the Jazz did
Honda sell? What were the reasons for the earlier model to be abruptly
discontinued in India?
The previous generation Jazz was launched in
2009 in India with cumulative sales of more than 23,000. Since Honda has
the policy of selling the latest versions of the models and the second
generation Jazz was replaced by the new generation Jazz in the global
market, we had a gap in between during which we launched many new
models, including the Amaze, the all-new City, and Mobilio. Now we are
all set to launch the third Generation of Jazz in India.
Please define the B+ segment in automobiles. What distinguishes it from other segments?
The
B+ segment or the premium hatchback segment is currently the largest
passenger vehicle segment in the country with a volume of 521,000 units
in FY 2014-15. The segment includes premium hatchbacks with seats up to
five, length normally between 3,600-4,000 mm, and engine capacity
varying between 1.2 l to 1.5 l.
How is the B+ segment growing in
India? What is the size of the B+ segment in India in relation to the
overall market size? What are the customer trends seen in this category?
As
we said, the B+ segment or the premium hatchback segment is currently
the largest passenger vehicle segment in the country with a volume of
521,000 units in 2014-15. Among the hatchbacks, during the past one
year, while A and B segment have de-grown by seven per cent and 10 per
cent respectively, the B+ segment has shown significant 10 per cent
growth, clearly indicating the increasing aspirations among customers to
opt for bigger and premium cars.
The Jazz will appeal to customers
from diverse profiles. The target customer is the young and dynamic
early achiever who wants the best of the best in life.
How has Honda taken to the said trends, what are your expectations?
The
upcoming Jazz is a premium product. It has done exceptionally well in
the markets it has been launched. The car packs a host of best-in-class
features, stylish and sporty looks, performance, and high versatility.
We expect that with these qualities, we would have a compelling
proposition. The market has become receptive to such products and we
believe that it would find its way well into the market.
Is there
strong competition in the B+ segment? What is driving customers away
from the more affordable A segment, which earlier ruled the Indian car
buying agenda? Your comments.
The B+ segment or the premium hatchback
segment is currently the largest passenger vehicle segment in the
country. It is a fiercely competed segment with most of the industry
players pitching in with their products. We believe that the growing
disposable income of the younger generation and their growing tendency
to trade up for value is powering the B and B+ segments.
What are Honda’s plans in the B+ segment, and in the Indian car market at large?
We
plan to maintain the momentum we have achieved with our products. Our
product line-up is fresh and would be further boosted when we launch the
Honda Jazz. We have been on a successful expansion drive in the past
couple of years. We have expanded our production facilities, the
dealership network and the product line-up. We are confident of growing
steadily and doing well in the Indian market.
Will the new Jazz sport both petrol and diesel engines? How many units do you plan to sell in India?
The new Jazz will have both the petrol and diesel variants.
We
are hopeful that the product would be well received by the consumers
and would do well in terms of sales but it will be difficult to put any
numbers at this point of time. Also, the sales would vary with the
various market forces and determinants.
What is the present capacity of your plant(s)? Are there any plans to augment production capacity?
Our
current production capacity is 2.4 lakh units per year from the two
plants contributing 1.2 lakh units each. With the new investment of Rs
380 crore the production capacity of the Tapukara (Rajasthan) capacity
is going to be further boosted and will become 1,80,000 units per year
by the middle of 2016.
DH News Service
When France’s automobile major Renault
launched its Lodgy in India recently, it heralded a new tryst in an
already upcoming category of cars. It is an MPV (multi-purpose vehicle),
but with a robust (French) European build.
The Lodgy
now joins a race of vehicles that already has few ‘confirmed’ winners,
and the market is eagerly awaiting what Renault brings to the table. A serious, yet cute MPVThe
Lodgy is indeed a cute car, despite the mammoth size it assumes as a
whole. An enviable face, and a body to be admired, summarises the
exterior appeal. With wide, expressive headlights, with chrome surrounds
and daytime lighting, and a stylish chrome grille and front that is
chiselled to perfection, the car’s external posture moves down into a
sleek, dynamic profile. While embellishments including body-coloured
mirrors and aerodynamic two-tone bumpers add style; a warm, welcoming
Renault badge at the base of each door helps in effectively protecting
the paint job. Side door moulding with chrome inserts have been
additionally added to extend the car’s sharp appearance, apart from
protecting it from any potential dents or scratches.
The Lodgy’s
contemporary European lines accentuate a majestic character, offering
the MPV a striking presence. A pair of smoothly running roof rails add a
dash of charisma, while also allowing the car to carry loads of up to
80 kg. The sporty five-spoke alloy wheels and 185/65 R15 tyres give the
Lodgy a hallmark of the muscular look, coupled with better handling and
control on the road.
The rear of the car commands its own
respect. Though plain in its appearance, the strong pose reiterates the
fit and finish of the car, built to tank-like perfection. The rear
defogger and wiper on the windscreen are prominent, which are again
added features. A chrome tailgate garnish has the brand ‘LODGY’ boldly
sculpted in chrome. Large arrow-head tail lamps efficiently cover the
car’s looks.
Room for, well, everyoneOnce
inside, the Lodgy provides so much space that a family can drive an
entire day in the car, just like in the comfort of one’s home. The
three-row seating is built with elements of adaptability. While some of
the car’s models (seven-seater) have the provision of captain seats, the
Lodgy that we drive (eight-seater) is composed of a regular long
middle-row, which provides enough leg-room that a six-footer person can
stretch and grab a nap. For easy access to the third row, a 60:40 split
is provided.
The seats are chic, and carry a stylish definition
with quilted upholstery. The elegant plush seats add great perspective
to an already dynamic and eye-catching interior character.
A
two-tone dashboard, designed much like popular sibling Duster, is an
epitome of ruggedness with a leather wrapped-steering wheel, three-pod
instrument cluster with multi-information display, and circular dual
aircon vents, at the base of which sits a mediaNAV entertainment system,
with rearview camera display. A few other thoughtful additions within
the interior include centrally-placed large upper storage on the dash,
flight tray, open storage above glove box, 12-volt charging facility,
intuitive audi and phone controls, and independently controlled second
and third-row aircon vents.
Renault says that the Lodgy can seat
three in the last row, and so we try to squeeze in. But unless all three
are size-zero adults, it gets a little cramped. Designers have made the
Lodgy the best weekend holiday car, with ample space for luggage for
five people. The trunk space is legendary, with space to hold enough
luggage at 1,861 litres.
Multi-purpose driveThe
Lodgy is available in two engine variants — one offering 110 PS of power
and another offering 85 PS of power, both running on a 1.5-litre dCi
powertrain (same as those on the Duster).
We drive the former,
which we decide to take on the straight aligned New Airport Road, off
Bengaluru, before taking off on the hill climb near Nandi.
The
car’s French engine picks up quickly. The European MPV roars, though
silently on the wide six-lane road, effortlessly overtaking other cars.
The
1.5-litre dCi engine delivering 110 PS of power, which is tamed by a
smooth (first-in-segment) six-speed manual transmission with gear ratios
that are perfectly matched to the engine’s output, help the Lodgy
gather more and more road at every push of the gas pedal. The cruise
control gives much needed relief from clutch and accelerator, helping
the car reach top speeds of over 140 kmph.
Once the climb over
the meandering road of Nandi Hills commences, we notice that the packed
car coughs a little, requiring the gear to be lowered to the second, and
in few instances, to even the first. But on the whole, the drive over
an inclined and serpentine road goes comfortably well, and the car
steadily climbs thanks to its engine’s delivery of 245 Nm of torque at
170 rpm. But the car’s efficient steering control is well worth the
drive, and the Lodgy, like most other utility vehicles, takes its
occupants up any road with panache.
The Lodgy’s monocoque body
provides increased torsional rigidity, along with a stable suspension
for reduced tilt and an adaptive anti-roll bar. Also in store is the
Ergo-Drive which combines the car’s driving with effortless handling,
adding to the overall vehicle dynamics, performance, and an efficient
powertrain. We can feel that the car sways very less even though it’s
being relentlessly steered through the ever-present bends. Zero
vibration supports the fact that car has been built with seriousness to
safety and comfort.
Further additions for a safe drive include
airbags, ABS with EBD and brake assist, and a central locking mechanism
for young ones. With all these specs in operation, the Lodgy has safely
transported us to the summit of Nandi Hills. Now it is to be seen if the
Lodgy reaches the summit of the Indian MPV challenge. Available in six
colours, the different variants of Renault Lodgy are priced from between
Rs 8.32 lakh and Rs 11.92 lakh (ex-showroom, Bengaluru). According
ARAI, the fuel economy of the car stands at 19.98 km per litre.
Michael Patrao and Umesh M Avvannavar, May 20, 2015, DHNS
Performance matters
Why should an MPV (multipurpose vehicle) or family car
have a conservative look or mere functional interiors? Honda’s first MPV
for India, the seven-seater Honda Mobilio, offers both stylish looks
and superior performance. Mobilio competes with Maruti Ertiga, Chevrolet
Enjoy, Nissan Evalia, and Renault Lodgy. It is an ideal option for
seven members of a family on a weekend trip or a weeklong
pilgrimage.Though new to India, Honda Mobilio is actually second
generation. The first generation was sold from 2001 to 2008 in markets
including Japan, Australia, Thailand, and Malaysia. Mobilio,
manufactured at Honda’s Greater Noida facility, aims to sell 300,000
units annually by March 2017.
The monocoque (single shell)
construction gives it a sporty, contemporary look. It is a personal car
and certainly lighter than MUVs like Xylo, Tavera, and Innova. The
bonnet is short, while the rear is proportionately bigger. The almond
(or eye-shaped) headlamps and sharp taillights add to the allure.
Overall designIn
terms of design, Mobilio’s face is identical to Brio and its overall
design has a sporty, chiseled, and sculpted look. The T-shaped tail
gives it a stylish, sophisticated look. The rear is classy, not tapering
but with a flat horizontal view. The flooring is flat. This MPV has a
small car platform, small engine, yet is spacious and has a car-like
driving feel. Mobilio’s closest rival is Maruti Suzuki Ertiga and it is
longer than the Ertiga.
Our test drive of about 180 km
experienced both rain and shine. The Mobilio uses high tensile steel in
the frame to increase energy absorption and minimise impact from any
direction. The top-end variant is equipped with dual front airbags and
anti-lock braking system (ABS). InteriorsThere is
nothing dramatic about the interiors and many features, including
dashboard and the seats, resemble Brio and Amaze. The top variant has a
touch-screen audio video navigation system with reverse parking camera.
There are AC vents, with controls, in the second row, but not on the
third row. But the vents in the second row are good enough for the whole
rear area.
SeatingThe seats can be slided and
folded, offering flexibility in managing space. There is ample space in
the first row. The second row seats tumble at the push of a lever,
providing easy access to the third row. While first and second rows
offer comfortable seating with snug head and legroom, that is not the
case with the third row. Maybe it is okay for children, teenagers, or
medium-built adults. The third row, however, does have a reclining
backrest. The seats are thin and there is not much cushioning. Perhaps
the ergonomists might argue that it is good for long distances. Being a
low vehicle, you still have to ‘sit down’ on the seats. Storage SpaceEvery
row had storage space and bottle holders, including vertical storage
space for tools on one side behind the third row. The boot space can
carry about two or three medium-sized suitcases. For more space, the
third row can be folded flat. The boot space can be expanded from 223
litres to 521 litres with the third row folded flat.
The glove
compartment is medium-sized. The front door pockets are wide and can
hold one-litre bottles. Two large cup-holders and a storage bin are
placed right ahead of the gear lever. Then, there is the large
cubicle/bottle holder between the front seats. The rear doors have an
even bigger pocket and bottle holder. Both front seats get useful
seat-back pockets. EngineThe 1.5-litre i-DTEC diesel
engine (in our test vehicle) is based on Honda’s latest Earth Dreams
Technology, delivers a power of 100 ps@3,600 rpm, maximum torque of 200
Nm@1,750 rpm, and fuel economy of 24.2 kmpl as per test data.The diesel
is a practical workhorse. On our test drive, we found that it revs up
smoothly, affording a pull with a top speed of 140 km (after all it is
supposed to be a family car and safety is paramount). In fact, the top
speed has been electronically limited to 140 km/hr. While it glides over
sharp curves, it thumps if the humps are rather sharp. Overall, it is
easy to drive, and provides a smooth ride. The noise levels are not
obtrusive as in other vehicles. The 1.5- litre i-VTEC petrol engine
delivers a maximum power of 119 ps@6,600 rpm, maximum torque of 145
Nm@4,600 rpm, and fuel economy of 17.3 kmpl.The diesel engine has an
official mileage of 24.2 km/litre. In real test conditions, however,
given the roads and traffic and other hurdles, it is definitely above
20 km. You could call it fuel efficient. The petrol version 1.5-litre
i-Vtec officially claims a mileage of 17.3 km/litre.
Drive and
handlingThe user-friendly Mobilio offers good ground clearance. The car
is compact enough for easy manoeuvrability and effortless city drive. It
gives a good performance on the open roads as well as in city roads.
The Mobilio can match the C-segment sedans on the highway. Those on the
last row have a fair view outside from the window, where the glass is
otherwise fixed. Up along the long and winding inclines of
Devarayanadurga hills on our test drive, the Mobilio made light work of
the inclines delivering a smooth run up the hill.The clutch, though not
light, is also not on the heavy side either. It manages to commute
fairly well in traffic conditions. If you have been driving a hatchback
or sedan, a shift to the Mobilio does not need new learnings. An easy
drive should provide reasonable fuel economy. Parking is comparatively
easier. Lane change is a breeze on the highways.
PricingThe Honda
Mobilio comes in three variants in petrol, and four in diesel with
manual transmission. There’s also a diesel sports Mobilio RS. The MPV is
priced between Rs 7.09 lakh and Rs 10.04 lakh for the petrol versions,
while the diesel versions cost between Rs 8.56 lakh and Rs 12.33 lakh
(ex-showroom, Bengaluru).
Carlos Ghosn targets 5% mkt share with new 'game changer'
Cashing in on the burgeoning first-time car
buyers in India, French auto major Renault showcased its spanking new
global compact car ‘KWID’ here on Wednesday.
The 800 cc car
comes with with 98 per cent localisation, which includes 60 per cent
from the region around the Chennai plant where the car will be
manufactured. KWID is an important milestone for Renault, which will
compete in the small-car segment with Maruti's Alto, Hyundai's Eon,
Chevrolet’s Spark, as well as Nissan’s Datsun.
KWID will be
launched in India in the second half of 2015, the festive period in
September to November, and it will be priced between Rs 3 lakh and Rs 4
lakh. With around 40 per cent market share, the sub-Rs 4-lakh segment is
the single-largest car market in the country, which is dominated by
Maruti Suzuki with its multiple models, and Hyundai at a distant second
place.
Briefing reporters, Groupe Renault Chairman and CEO Carlos
Ghosn said, “KWID is based on the CMF-A (common module
family-affordable) concept which will be a game changer in the Indian
market which is dominated by Maruti Suzuki and Hyundai. For Renault,
India will be the fourth biggest car market in the world after US,
China, and Japan. Currently we have close to two per cent market share
in India and are aiming for five per cent share over the next four to
five years.” Not for Europe soon
Surprisingly,
Renault is not in a hurry to launch KWID in Europe. “As of now, this
car is first for India and its neighbouring countries, besides
South-east Asian regions. It will be marketed in emerging economies like
Brazil, China, South Africa, Indonesia and others,” he said.
Renault
in a statement said the KWID will be the first Renault-Nissan Alliance
model to use the CMF-A platform. It said the CMF-A model on average
reduces 30-40 per cent costs in the entry-level model, and achieves
20-30 per cent reduction in parts cost, largely because 98 per cent of
its suppliers are based in India.
The company said the platform
made use of resources and staff in France, Japan, Korea and India to
produce the car. Vehicle testing was done in various locations with body
and chassis tested in Japan, body equipment evaluated in Korea, and
endurance tests carried out in France. Renault said India was the venue
for overall and assembly testing.
The company claimed that KWID
overturned “established A-segment design cues thanks to a robust,
stylish exterior plus a modern, welcoming interior equipped with
unprecedented features for its segment”. KWID is 3.68 metres long and
1.58 metres wide, which Renault says makes it ideal for urban traffic.
Also, the car’s high-up “driving position provides greater visibility
for more relaxed journeys”, even as its “upright front end and short
front and rear overhangs provide owners with the look associated with
SUVs”, Renault said.
Sumit Sawhney, Country CEO and Managing
Director, Renault India Operations, said: “Renault will be increasing
its sales outlets from the present 157 to 280 by next year.”
Homegrown auto major Mahindra & Mahindra
has made an incremental Rs 150 crore investment in the new age XUV500, a
top executive said on Tuesday.
Talking to Deccan
Herald, Mahindra & Mahindra Senior Vice President Vijay Nakra said,
“We have invested close to Rs 150 crore. This is the incremental
investment Mahindra has done for taking the XUV500 to the next level and
introducing the new age XUV500. This is apart from the few thousand
crore in investments done at the first launch of XUV 500 in 2011.”
Nakra
was in the city to roll out an updated version of XUV500. He said the
launch of the SUV would further strengthen the company’s position in the
SUV segment, where it currently commands over 40 per cent market share.
“If
you look at the overall passenger and SUV category, in the last three
years the SUV category is growing faster than cars...the lines between
SUVs and cars are becoming blurred,” Nakra said.
“The compact
SUV is becoming a very attractive category and segment...and the maximum
launches are happening here. Those who are considering a car are now
considering an SUV... because the customer is able to get the same feel
of driving a car, but with the power of an SUV,” Nakra added.
To
cater to the needs of all customers, Mahindra plans to launch nine
models — including two all-new compact SUVs, besides refreshes of
current products — in the current fiscal as part of its plans to
strengthen its position in the passenger vehicle segment.
On
rural sales, Nakra said, “As far as rural sales are concerned for
Mahindra, about 36 per cent of our volumes come from rural areas. All of
us are aware that the rural market cannot be treated as a second
cousin. Consumers are very well-informed. We get tweets from customers
in Hindi. That’s the level of awareness about technology in rural
India.”
“India is broken into 6,000 tehsils. Our focus strategy
is to tap at least 3,000 tehsils. At the moment, we have 1,700 touch
points across the country,” Nakra added.
The updated version has
sports-themed features, including electric sunroof, push-button start,
six-way adjustable seats, and six airbags. Till date, Mahindra has sold
1.26 lakh XUV500 units and aims to sell 3,000 units per month of new age
XUV500.
It is powered by 2.2-litre, 103 kW (140bhp) m-Hawk
engine that delivers 330 Nm of torque, and gives a mileage of 16 kmpl
(ARAI certified).
Tired of the always-on corporate grind and its toll
on the work-life balance, a new generation of youngsters is looking at
India's public sector banks
Before the economy
opened up, public sector bank (PSB) jobs, especially as probationary
officers, were much sought after by educated youngsters. Then the allure
seemed to vanish after multinationals and the homegrown information
technology (IT) sector, not to mention a slew of new-age, tech savvy
private sector banks, beckoned the best and the brightest with unheard
of pay and perks.
But looks like things have come full
circle. Perhaps fuelled by awareness about the tiresome, always-on
corporate grind and its toll on the work-life balance, many are now
looking at India’s public sector banks with fresh eyes. The benefits are
many: decent pay, work-life balance, career growth prospects, job
security, and even unheard of perks like subsidised housing in big
cities.
And after a gap, the PSBs too seem to be enjoying the
attention and recruiting in droves. Deccan Herald talked to
cross-section of bankers and industry stakeholders to find a vibrant
hiring environment, despite the many constraints straining the sector.
Vijaya
Bank, which has the highest number of branches in Karnataka, has plans
to hire 1,924 people across various cadres. “Out of the total, 1,200
will be officers, and the remaining will be clerical staff. We are also
hiring specialists such as chartered accountants (CA) directly in scale
two, besides specialists in IT, security, Hindi officers and law
managers,” said Vijaya Bank Managing Director and CEO Kishore Kumar
Sansi.
At present, a total of 13,364 employees work for Vijaya
Bank. When asked about the bank’s strategy to attract good talent, Sansi
told Deccan Herald that being a public sector bank, and the
restrictions imposed by the Supreme Court, its hands are tied when it
comes to attracting the best.
“We have to put our requirements
to the Mumbai-based IBPS (Institute of Banking Personnel Selection),
which is the centralised nodal agency for recruitment. Few years ago, we
used to do campus recruitment from management institutes, but now the
matter is subjudice, and we are not able to do campus recruitment. We
have already requested the Ministry of Finance to hasten up the
process,” he informed.
“IBPS conducts a written test and the
interview process is also done by them. However, for the CAs, it was our
own initiative. So we have invited applications directly and to that
extent we had the leeway to attract the best talent. We are planning to
hire 20 CAs in the managerial cadre,” Sansi said.
Recently,
PeopleStrong co-founder and CEO Pankaj Bansal was quoted as saying that
hiring in the banking sector is expected to grow by 25 per cent this
year.
Public sector lender Syndicate Bank looks set to confirm this. It has plans to hire close to 5,000 this financial year.
“We
have plans to train them in different segments, especially MSMEs
(micro, small and medium enterprises). We also have large and
mid-corporate segments,” the bank’s executive director R S Pandey said.
What is challenging is mentoring new people, he said. Both the clerical
and office staff will be hired in equal numbers at Syndicate Bank, which
has 29,000 employees at present.
State Bank of Mysore (SBM) is
another player in the field, with plans to hire 2,150 more in the
current fiscal year. SBM will hire 725 clerical staff, 625 officers and
800 subordinate staff.
Bengaluru-based public sector lender Canara
Bank will hire 2,000 officers and 2,500 clerks. As on March 31, 2015,
Canara Bank had 53,900 employees and SBM had 10,193 employees.
Flexibility in posting
When
it comes to posting, banks are quite flexible. “There is no such policy
that restricts a new employee from being posted in his/her hometown.
But we feel that in the first two years, if you can rotate the new
recruit across different stations, and give them exposure, the person
becomes more confident. Progression becomes stagnant if he/she is posted
in his/her home town,” said Vijaya Bank’s Sansi, adding that the bank
provides HRA to those who are posted in different cities.
When
asked about the pay package being offered by SBM, Managing Director
Sharad Sharma described it as attractive with certain fringe benefits.
“An employee joining as an officer may get promoted to top executive
position within a span of 18-19 years in his/her career. Some of the
officers are given an opportunity to work in offices abroad in key
areas,” he said.
At present, banks are seeing interest from
engineers, MBAs and MTech graduates for probationary officer (PO) jobs.
“I see engineers getting inducted in the clerical cadre. We really feel
happy to groom them, and they become a good asset to the bank,” said
Sansi.
“They feel their future will be bright in the banking
profession. The turnaround in our profession is interesting. There are
lots of movements from other sectors,” he added, and said at the officer
level, they will get HRA.
“In Mumbai, they get a flat which
would otherwise come at a huge cost. We have announced an average wage
hike of 15 per cent. Moreover, DA (dearness allowance) keeps improving
every quarter, depending on the inflation,” he said.
According to
Canara Bank Officers Association General Secretary G V Manimaran,
“Banking jobs are safe and the attrition rate is just 15 per cent.” A
senior official from Syndicate Bank informed that around five to 10 per
cent from IT sector join banks. “Though the salary is not as high as in
IT, job security and ample scope for growth attracts them,” the official
said.
(With inputs from Uma Kannan)
“I
see engineers getting inducted in the clerical cadre. We really feel
happy to groom them, and they become a good asset to the bank.”
Kishore
Kumar Sansi
Vijaya Bank MD and CEO
“An
employee joining as an officer may get promoted to top executive
position within a span of 18-19 years. Some officers are given an
opportunity to work in offices abroad in key areas.”
Sharad Sharma
SBM Managing Director
“We
have plans to train them in different segments, especially MSMEs
(micro, small & medium enterprises). We also have large and
mid-corporate segments.”
R S Pandey
Syndicate Bank
Executive Director
Look who’s hiring
Vijaya Bank: 1,924 this year, of which 1,200 will be officers
Syndicate Bank: 5,000 more this year
State Bank of Mysore: 2,150 more this year, of which 625 will be
officers
Canara Bank: To hire 4,500 this year, of which 2,000 will be officers
And many, many more…
The lure of the five-day workweek
Uma Kannan
The
five-day workweek could be another draw for youngsters looking at
public sector banks for jobs. Just a few days ago, a deal was finalised
between the public sector bank (PSB) employees and officers with the
Indian Banks’ Association (IBA), according to which, PSBs will remain
shut on all second and fourth Saturdays. IBA has now initiated steps to
get clearances from the Reserve Bank of India and the Government of
India. Once finalised, all branches of public sector banks will remain
shut on the second and fourth Saturdays from July 2015.
PeopleStrong
Co-Founder and Business Head Kiran Kumar says the five-day week will
attract potential recruits to an extent. “Banking jobs are always
lucrative, and with this one, employees get a work-life balance. It’s
definitely a big relief for employees, and also PSBs need to bring in
fresh blood,” he said.
General Secretary of All India Bank
Employees Association (AIBEA) C H Venkatachalam said, “Due to the
increasing workload and stress faced by the bank staff, and the need to
work beyond normal working hours in many branches, there has been a
demand for a five-day week. In this settlement, it has been agreed that
second and fourth Saturdays will be full holidays and remaining
Saturdays will be full working days. This has been received well by the
employees.” He added that this would attract new recruits too.
However,
HiRePro CEO Rishi Das and Hem Securities’ Equity Research Analyst
Vineeta Mahnot feel that there will not be much impact on banks. “On the
one hand, public dealings, transaction processing, among others will be
enhanced on full-working Saturdays, i.e the first and the third, and on
the other hand, it will be halted on the Saturday holidays.
There
may be some relief for employees on alternate Saturdays, thereby
increasing their efficiency. Further, public sector undertakings have
been the all-time favourite workplaces for the Indian citizen so far.
People prefer to work with public sector undertakings since they feel
assured of permanent and riskless job, keeping full faith in the
government,” Vineeta said.
Rishi Das chipped in, “Many
engineering and MBA graduates sit for PO exams. Public sector, including
banks, pay well at the entry-level. The growth prospects and stability
in the banking sector attract them.”
Umesh M Avvannavar, BENGALURU, June 10, 2015, DHNS:
Sees 200 banks with international cards
In a bid to provide an alternative service to Visa and MasterCard to customers in India, National Payment Corporation of India (NPCI), which runs the RuPay payment card network, plans to launch international cards very soon, a top executive said on Wednesday.
Talking to Deccan Herald, National Payments Corporation of India Managing Director and CEO A P Hota said, “RuPay card conceptualised by NPCI will go international shortly. So far, the card was domestic only. With this, member banks of NPCI will be able to issue RuPay cards which will be accepted on ATMs (automated teller machines) and PoS (point of sales) abroad.”
NPCI has already done the pilot study with Bank of Baroda, Central Bank of India, and Saraswat Co-operative Bank. Now a good number of banks would be able to issue RuPay international cards.
Currently, the entire lot of 165 million RuPay cards are domestic only. Our target is to enable 200 banks within a period of two years to get international cards, he said.
Hota was in the city to launch Canara Bank sponsored RRBs like Pragathi Krishna Gramin Bank and Kerala Gramin Bank Immediate Payment Service (IMPS) — an interbank remittance processing service offered by NPCI.
“Immediate payment service means instant payment, which is unique in the world. Currently, only three countries like UK, Singapore, and Australia provide such service...but we have taken the lead.”
The banks have gone live on the IMPS P2A (P2A or person to account number) platform using account number and IFSC (Indian Financial System Code). With this, bank account holders of any IMPS P2A enabled bank can send and receive money 24x7 via IMPS to/from these two Gramin Banks using account number and IFSC. IMPS or Immediate Payment Service is a unique interbank remittance processing service offered by NPCI.
This service offers instant, 24X7, interbank electronic fund transfer through mobile, internet, and ATM.
Pragathi Krishna Gramin Bank (PKGB), with jurisdiction over 11 districts of Karnataka, and Kerala Gramin Bank (KGB), the only RRB in Kerala state having presence in all the 14 districts, will be among the first two Regional Rural Banks in the country to offer the IMPS P2A service.
Unlike NEFT, which is available only during banking hours on working days, IMPS is available anytime 24 hours a day, seven days a week throughout the year, irrespective of public holidays.
Umesh M Avvannavar, Bengaluru, June 17, 2015, DHNS:
Superb steering feel, soundless engine, plug-in
hybrid tech, top speed of 250 km/hr, and fuel economy of 47.45 kmpl give
it an unheard of aura
I kissed the BMW i8 the moment it was
unloaded from the truck off the Noida highway in the wee hours of a
misty Wednesday. I was so excited to drive the i8 that in fact, I
couldn’t sleep the previous night, just dreaming about the car that is
the craze of any car enthusiast or auto aficionado.
German
luxury behemoth BMW is going full tilt as it combats competition from
formidable rivals in the booming luxury sportscar market in India. The
BMW i8 is the second model from the new sub-brand BMW i and the first
plug-in hybrid vehicle from the BMW Group. The production version of the
BMW i8 was exhibited at the 2013 Frankfurt Motor Show. It was launched
in Germany in June 2014, and in India this February.
The interiors
I
am all set to drive the brand new car. But before that, I wonder how to
get inside. A simple rule comes in handy. First, your crossed haunches
go inside, and then you twist to your left. Soon you are in the driver’s
seat. With a low-seating position, finding a seat belt is a little
difficult since one has to stretch the arm and drag.
Welcome
to the BMW cockpit design with its standout features. The instrument
cluster of the BMW i8, with its horizontal lines emphasising the width
of the interiors and a structure determined by the ‘layering’ principle,
creates a light, yet powerful impression. A contrasting colour scheme
enhances the arrangement of the overlapping, three-dimensional segments.
I
wanted to roll down the windows, but by mistake pressed the wrong
button, which was very close to the right power windows. The boot
opened. The co-passenger must get out and fix (close) the boot. I wish
the boot opener could have been placed somewhere else.
The layering
approach also finds its way, through dynamically curving lines, into the
design of the centre console. It is home to the gear selector, the
controller for the iDrive operating system, the start/stop button, the
eDrive button, and the driving experience control switch.
The
iDrive system’s control display comes in a freestanding 8.8-inch format.
A custom sports steering wheel with multifunction buttons and the
navigation system professional are included as standard in the BMW i8.
Also standard is the multifunction instrument display, whose content and
presentation formats change with the driving mode selected. Apart from
the two seats in the front row, there are two smaller ones in the rear.
The rear seats are, well, not roomy even for children. Perhaps BMW could
have used them better for luggage, considering the limited boot space
on board.
The drive
The beauty of this car is
its COMFORT mode. The engine doesn’t make even a purr; it’s virtually
soundless.I cross-checked if the car was on... you can barely tell
whether the engine is there or not. I began my drive from the Noida
Expressway to Agra. With firm hands on the steering, I nudged at the
accelerator. Trust me, it flies... I mean, it will give you an
experience just like an aircraft taking off. The thrust from the
acceleration pushes the machine forward.
One can easily touch
0-100 kmph in 4.4 seconds. I was confident enough that I reached a top
speed of 202 kmph effortlessly. It was a fatigue-free drive. Full marks
to the electrically assisted power steering, which is smooth and helps
to easily manoeuvre the car. I was eager to drive the car even in the
city to check the 117 m of ground clearance, which is very low.
Incidentally, the maximum speed the car can achieve is 250 km/hour; and
this would be a still impressive 120 km/hour if it is running on purely
electric power.
The plug-in hybrid system developed by BMW
claims to be an advancement in efficient-dynamics. The three-cylinder
petrol engine with the BMW TwinPower Turbo technology, combined with BMW
eDrive technology in the form of a hybrid synchronous electric motor
adds that extra push for the drive, while an engine displacement of 1.5
litres, delivers an output of 170 kW/231 HP and maximum torque of 320
Nm.
The power is sent to the rear wheels via a six-speed
automatic gearbox. Its second engine, an electric motor with an output
of 96 kW/131 hp and maximum torque of 250 Nm, has power channelled
through the front wheels via a two-stage automatic transmission, and a
lithium-ion high-voltage battery with direct refrigerant cooling and
gross capacity of 7.1 kWh. Battery charging is done while driving by the
petrol engine, and at home using the Wallbox charging stations.
A
combination of BMW TwinPower Turbo and BMW eDrive technology plus
intelligent energy management bring out a maximum system output of 266
kW/362 HP, and give the BMW i8 the performance characteristics of a
pure-bred sportscar accompanied by fuel economy of 47.45 kmpl and
emission figures of 50.36 g/km — which resemble the stats of a small
car.
The Driving Experience Control switch allows the driver to
choose from four driving modes — COMFORT, SPORT, ECO PRO, and HYBRID —
with the eDrive button optimising the driving situation. The car gives a
maximum range of up to 35 kilometres on electric power alone; The
COMFORT mode, which emphasizes comfort, offers a combined range of up to
600 kilometres (tank filled at 90 per cent, with total driver and
luggage weight of 75 kg). The SPORT mode, stresses on performance, and
the ECO PRO mode on efficiency. The HYBRID mode is used for charging the
battery using brake energy. The exteriors
The
beauty of this car is its doors, which open forward and upward like
wings, adding extra intrigue to the sportscar design of the BMW i8. A
signature feature of BMW i cars is the “black belt”.
On the BMW
i8, it emerges in a ‘V’ shape from the bonnet and extends back over the
roof into the rear section of the car, where it frames the centre
section of the rear apron.
The front view of the BMW i8 exudes
sporting ability in its purest form. Large front apron air intakes
arranged over several levels generate a power feeling of depth.
The
extremely broad BMW kidney grille stretches over to the slim
headlights, accentuating the width of the BMW i8 and its road-focused
stance. The car’s full-LED (light emitting diode) headlights adopt the
hallmark U-shape of BMW i models.
The BMW i8 embodies a
revolutionary, future-focused interpretation of the driving pleasure for
which BMW is renowned. It was purpose-designed as a plug-in hybrid
sports car offering agile performance and outstanding efficiency. An
exceptionally lightweight and aerodynamically optimised body, includes a
passenger cell made from carbon-fibre-reinforced plastic (CFRP). The safety features
On
the safety front are the intelligent lightweight construction with
elements including a CFRP passenger cell, doors with a CFRP-aluminium
structure, an instrument panel with magnesium supporting structure, an
aluminium chassis, and a partition between the passenger compartment and
boot made from hardened thin glass.
There’s also the
comprehensive safety concept, and an ultra-torsionally stiff passenger
cell; front, side and head/curtain airbags, inertia-reel seatbelts with
belt force limiters front and rear; ISOFIX child seat attachment points;
tyre pressure monitoring for each individual wheel; and pedestrian
sound alert — all present as standard.
Sophisticated chassis
technology featuring a double-wishbone front axle and a five-link rear
axle; Electric Power Steering; Dynamic Damper Control and 20-inch
light-alloy wheels are also included as standard. Get noticed
You
will become a celebrity overnight if you own a BMW i8. I had a tough
time controlling onlookers, who were thrilled to see the car and were
eager to know more about the new beauty from the BMW stable. Not to
forget their desire to be photographed along with the car! One can buy a
BMW i8 for Rs 2.29 crore (ex-showroom, all-India), through BMW i
dealerships in Mumbai, Delhi and Chennai.
************************************************************** 93. A rockstar from the cradle of superbikes
Hrithik Kiran Bagade and Umesh M Avvannavar, Bengaluru, June 17, 2015, DHNS:
GRANDE! After taming the Benelli TNT 600i, DH Wheel's
two test-riders say the formidable bike, with its 16-valve, 600 cc
engine, breathes everything I
It’s a beautiful morning in Bengaluru,
made even more alluring by the red machine that we have at our disposal
for around four hours. It is massive by every stretch of imagination,
towering at a height of 2,150 mm, stretching to a length of 1,280 mm,
and settling at a width of 840 mm. The naked motorcycle breathes
everything Italian and goes by the name of Benelli TNT 600i.
In
recent times, media has been celebrating the arrival of many superbikes
and premium roadsters in the Indian market, roaring their way to garner
their own niche. The slew of new machines that are on offer, and the
taste for the feverish adrenaline rush and the need to propel to higher
speeds and quicker gear shifts, have only kept the global motorcycle
legends welcome in the country.
But there’s a world of difference
between reading about Italian superbikes, and having one in your
possession to ride as you please, and tease the machine to bring out its
best. Italy can surely be regarded as the cradle of the superbike,
where many a maker has successfully etched its wondrous name in the
annals of biking glory and heritage. Crafted with intricate aesthetics
and built for sheer power, Italian motorcycles are yearned for by their
ardent devotees. Benelli came to India with many machines on offer, and
that typical Italian promise of a world-class motorcycle. Sold in
partnership with DSK Motowheels, Benelli with its Italian DNA claims to
pack in the same punch as its cohorts from that country. Formidable appearance
Getting
to ride the Benelli TNT 600i through traffic and then testing its
limits on open road, gave us a feel of what an Italian motorcycle is
really capable of. The TNT 600i’s bodyworks are composed on a rather
simplistic, yet robust platform. Its forward tank extensions — a design
feature seeming to be employed across models — and its high gait make
the bike appear quite formidable, even for a 600 cc machine. The TNT
600i’s design features include an exhaust mounted beneath the tail
section, and a large muscular fuel tank, on which sits proudly the stamp
of Benelli, and an attractively-styled headlamp. When we first took the
bike to Lalbagh for a morning photoshoot, it quickly drew the adoring
eyes of curious onlookers on its chiselled body, with many of them
shooting questions about its features and pricing.
A feature that
gets a big score is the comfortable split seats, which cozy you up the
moment you mount the bike. The high rear seat allows a good view of the
road ahead, and enables the pillion rider to be a part of the cruise.
The
bike is ready for its test. With the two of us astride, the Benelli
TNT 600i’s destination is the wide, open NICE Road, Bengaluru, where the
best of the meanest machines may be tested. As usual, the route between
Lalbagh and NICE Road is dogged with mammoth traffic snarls. A
challenge you may think, for a superbike? But wait till the Benelli
opens up!
The gallop of a stallion
The
TNT 600i motorcycle is composed of an inline four-cylinder, four-stroke,
DOHC, water-cooled engine. The power of the 16-valve, 600 cc engine
becomes evident the moment the first gear is applied. The bike takes off
like a stallion galloping around a racecourse. Of course, the ride
requires controlled handling in traffic, with moderate amounts of speed.
For
all its heft, the TNT 600i is surprisingly able to negotiate
effortlessly around the irritation whenever we encountered any slowdowns
on the road. We could leave it all behind, still maintaining an even
momentum of 60-80 kmph, all in the first gear.
We reach the
NICE Road and waste no time in increasing the revvs. Dressed as knights
in shining armour from head-to-toe, following the norm while riding such
power machines, we are quick to begin accelerating. Posturing ourselves
in tandem with the aerodynamic requirements while cutting through the
air, the bike is already cruising at high speed. At first gear, the
speed has raced past 100 kmph, all in a few split seconds. The
crimson-lit instrument cluster provides riders with every bit of
relevant information, and is legible even while the bike is roaring
ahead faster and faster. Smooth as silk transmission
The
bike’s engine can dish out a power of 85.07 Bhp @ 11,500 rpm at a
steady torque of 54.6 Nm @ 10,500 rpm. The six-speed constant mesh
transmission system works as smooth as butter, and the task of riding is
suddenly transformed into a charm.
A wide road sans any ditch
or pothole is the perfect playing field for the TNT 600i. But a rougher
patch little deters the determined bike, for it makes mincemeat of the
blemish. With a ground clearance of 150 mm and wheelbase of 1,470 mm,
the TNT 600i, can glide for sure.
On the NICE Road, we
experience the full range of the bike’s design and feel. The bike stays
stable while turning at deep bends, reaching up to speeds as high as 240
kmph. Even the pillion rider can be king on the bike, thanks to the
safe hydraulic disc brakes, ably aided by the inverted fork telescopic
front suspension and the hydraulic mono-shock absorber rear suspension.
Like
all Benelli bikes, the TNT 600i lacks an ABS system. Some theorise that
this might serve as a differentiator for a superbike in a market
dominated by products with this feature (often marketed as a safety
requirement). It is suggested that the choice made by Benelli puts the
rider in better control of the machine and its manoeuvrability.
With
a sizeable 16-litre tank, the TNT 600i, if ridden in a controlled
manner, dishes out a fuel efficiency of over 20 kmpl, which is quite
good for a bike in this segment. Besides, it also sells at a competitive
price of Rs 5,24,000 (ex-showroom Bengaluru), and is available in three
colours.
The great Roman general Julius Caesar had once
famously declared, “Veni, vidi, vici...!” It’s true even in the case of
this Italian that once on it, you cannot help but say, “I came, I saw, I
conquered...!” This superbike could conquer the road, just as it has
our hearts.
Umesh M Avvannavar, June 25, 2015, Bengaluru, DHNS
'It frees customers from interest burden'
In a bid to de-risk consumers of property
projects from bank loan-related stresses, Birla Financial Services India
(BFSI), a wholly owned subsidiary of Yash Birla Group, will launch the
property ‘demat model’ through Birla Homes, a top executive said on
Wednesday.
Talking to Deccan Herald, Birla Financial
Services India Managing Director Manoj Singh said, “Birla Homes is
coming up with end-to-end solutions for buyers and residents of our
projects,” he said.
He described the broad contours of the plan.
“A combination of pre-investment and ownership will be finalised with a
minimum customer investment of Rs 30,000 to 50,000 per month, for a
period of three to five years.
“During this period, investors
will be free from the burden of interest on products like home loans and
will every month, continue to acquire a part of their ‘Dream Home’,
with an assumption that the valuation of the property will go up by 45
per cent during this period,” he added.
Manoj went on to say,
“The understanding is that by the end of investment period, investors
will have an ownership of 75 per cent (45 per cent property appreciation
+ 30 per cent investment) in their property. This leaves them with
options of either investing (paying) the remaining 25 per cent to take
100 per cent ownership of their Dream Home, or of exiting with a profit.
More details shall be disclosed soon.”
Enters Bengaluru market
Birla
Homes has announced its foray into the real estate market in Bengaluru
through an alliance with City-based developer Apple Spire. It launched
the first residential project, Birla Apple Spire, at Nayandahalli on
Mysuru Road, which would offer premium two-BHK and three-BHK apartments
spread across 25 floors.
The company has offered a launch price
of Rs 6,500 sq ft for a few days only. It said the project will have 250
flats with prices ranging from Rs 99 lakh to Rs 1.27 crore. Apple Spire
MD C Chandrashekar said, “The total investment will be about Rs 100
crore and the time-frame will be two years. We are expecting to deliver
the flats by March 2017.”
The company is launching another
project called Birla Maysons Udbhava, located in northeast Bengaluru.
The project is a cluster of 10 limited edition row houses, where the
total area of each house ranges from 3,850 sq ft to 4,250 sq ft.
Adding value
Demat model is via Birla Homes, which will give end-to-end solutions for buyers
Ownership is finalised with a minimum investment of Rs 30,000 to 50,000 per month, for three to five years.
By the end of investment period, investors will have an ownership of 75% in their property
Umesh M Avvannavar, June 28, 2015, Bengaluru: DHNS
Cites inexplicable delays, red tape
Steffen Berns, the India unit head of
€49-billion German auto component giant Bosch, tore into the Karnataka
government for its culture of red tape, and threatened to shift the
company’s expansion plans elsewhere.
Delivering a
lecture on the “Multinational Perspective on Make in India” at the 38th
Annual General Meeting (AGM) of the Bangalore Chamber of Industry and
Commerce (BCIC) on Saturday, Berns thundered: “Bosch is thinking of
diverting its expansion plans to other states because of delays in
approvals. We have got lots of support from the Karnataka government
here, which we really appreciate, on many issues…but looking at the
construction progress, getting electricity, it took us 29 touchpoints
and 19 months to get approvals for two of our office buildings.
“To
tell you…it was not for land acquisitions…just for electricity
connections. It took us seven months to get approval for simple
logistics.”
He added: “We have completed phase-I construction
activities of the new plant at Bidadi, which also took a lot of time. We
are still waiting for approval of electricity connections. These are
the points which I cannot explain to my headquarters in Germany. It is
not a question of whether we have to wait six months longer.But, it is a
question of whether we can continue investments in Karnataka, or look
to invest in other parts of India or Asia.”
Loud complaints by
multinationals against the State government have acquired a familiar
ring of late. A few months ago, American eCommerce giant Amazon had
announced it was putting on hold all future investment plans in
Karnataka after a long-running dispute over payment of value added taxes
(VAT) boiled over.
There at least, the State commercial taxes department could argue about the merits of its contentions.
But
the grievances of Bosch are sure to touch a chord. The German marquee
name has been one of the earliest multinationals to make in India, with
its first plant coming up in Adugodi in the city in 1953.
Berns
referred to that heritage in his speech. “As a multinational company, we
are present in Karnataka for over 60 years and we are still facing
issues. We have to think twice to continue to make further investments
and we don’t see enough improvement yet.”
According to him,
labour laws with unclear terminology, multiple contradictions, and
complex problem resolution mechanisms are among the major hurdles to
making more investments in India.
Yuken India Managing Director C
P Rangachar waded into the debate when he concurred, “We need stable
and fair laws. A new company is subjected to 52 government departments
for approvals.”
It was left to Karnataka Minister for Higher
Education and Tourism R V Deshpande to try and salvage the situation.
Regretting the inconvenience caused to Bosch, he urged Berns to continue
to invest in Karnataka. “There are difficulties, I don’t deny that. The
government of Karnataka is committed to solve the problems faced by
industries.” With folded hands, Deshpande said, “Please don’t go
anywhere…please do invest here.”
Gaurav Gupta, Commissioner
Industrial Development, and Director of Industries and Commerce, claimed
that projects worth around Rs 97,000 crore has been approved under the
leadership of Chief Minister Siddaramaiah, generating 2.27 lakh
employment.
Umesh M Avvannavar, June 29, 2015, Bengaluru, DHNS
A month after the government released the
draft guidelines for the gold monetisation scheme (GMS) intended to
monetise the 22,000 tonnes of the metal lying idle with households and
religious trusts, gold loan non-banking finance companies (NBFCs) are
not hiding their disappointment that the scheme has defined no roles for
them.
As of now, only banks are expected to
participate in this programme. But gold loan companies have indicated
that they would be glad to participate, if permitted. Talking to Deccan
Herald, Manappuram Finance Managing Director and CEO V P Nandakumar
said, “The scheme indicates the resolve of the government. At the same
time, we feel it is better seen as a promising start rather than an end
in itself.”
In his view, the scheme does well on two counts.
“First, the minimum quantity for investment has been brought down to 30
grams, making it feasible for middle class households. Second, it
proposes to pay interest valued in gold which means it becomes inflation
proof.”
He, however, notes, “The scheme has flaws too. For
example, the proposal to use only 350 BIS certified hallmarking centres
as purity testing centres means that the scheme will have limited reach,
at least in the initial years. Besides, no role is envisaged for gold
loan NBFCs which possess gold appraisal skills dispersed throughout
their extensive branch network.
The impression we get is that in
practice, the scheme may involve hassles for customers as they travel
between banks and purity testing centres. Ideally, customers should be
able to avail the scheme at one place. This can be done easily if gold
loan NBFCs are involved.”
Another gold loan financier, Muthoot
Finance, also welcomed the scheme, but was not sure about the
requirement to melt the gold. Muthoot Finance Chief General Manager K R
Bijimon said, “The government’s intention and purpose is good. But
melting the ornaments with sentimental value for monetising may not be
appealing for most women folk who are the real owners. We are already
monetising the gold through gold loans without melting it. Today one
lakh customers walk into our branches and we have assets under
management (AUM) of approximately Rs 25,000 crore.”
When asked
how the scheme will help the economy, Nandakumar said, “A successful
monetisation scheme would enable the country to cut down on import of
gold and the current account deficit, leading to a stable currency.”
Agreed
Geofin Comtrade Research Analyst Vaibhav P Chudasama, “Definitely this
will not impact immediately on the gold import levels, but going forward
this could be a major factor in world gold demand.”
Dismiss adverse effect
But
gold loan NBFCs dismiss that the scheme would adversely affect their
business. “We do not foresee any impact on our business and customers.
This monetisation scheme targets those who have surplus gold which is
kept locked up in safes and vaults. In contrast, the gold loan business
targets that segment who have limited savings in gold and who
occasionally need to draw money against it,” Nandakumar said.
India
Infoline Finance CEO Rajashree Nambiar too dismissed such fears. “Loan
against gold is a loan product where the owner of the gold jewellery can
avail loan against it. The Gold Savings Account is an investment avenue
wherein the owner earns income on deposited gold. As these are two
diverse products, there seems to be no material impact on the existing
loan against gold product of banks/NBFCs.”
97. Maruti Suzuki invests Rs 600 cr in S-Cross
http://www.deccanherald.com/content/487312/maruti-suzuki-invests-rs-600.html
Umesh M Avvannavar, Nasik, July 4, 2015, DHNS:
The country’s largest carmaker, Maruti Suzuki,
has invested Rs 600 crore to foray into the premium crossover segment, a
top company official said on Friday.
MSIL’s Executive
Director (Engineering) C V Raman said, “For product development in terms
of plant machinery, and tooling specific to the model, Maruti Suzuki
has invested Rs 600 crore. It took us four years for overall research
and development (R&D).”
India’s first premium crossover,
which is built on a brand new platform, is set to hit the market in the
first week of August in two variants. Interestingly, Maruti is launching
S-Cross only in two diesel variants of 1.3 litre and 1.6 litre. When
asked about why only diesel variants are being brought out, Raman said,
“In diesel, the torque is much higher compared with petrol. It is
archaic thinking that diesel engines are noisy and cost of maintenance
is more…with CRDi (common rail direct injection) technology, the NVH
(noise, vibration, and harshness) is lesser, and even maintenance is
easy.”
Maruti Suzuki India Executive Director (Marketing and
Sales) R S Kalsi said, “I am super excited, as S-Cross is a big
achievement for Maruti Suzuki and is its foray into the premium
crossover segment. Being the market leader for almost three decades, we
have to continuously raise the bar. We have to find out new segments,
create new opportunities and in that direction we have the mid-term goal
of achieving the two million mark by 2020. Beginning with S-Cross in
2015 is the first step.”
On asked about target customers, Kalsi
said, “We already have a customer base of over 15 million in the
country, and over 46 per cent market share. The third generation
customer is looking at the comfort of a sedan and the capability of an
SUV (sports utility vehicle). Through the S-Cross, we have combined both
and created a new segment for them.”
To open 100 Nexa outlets
In
a bid to cater to premium customers, Maruti Suzuki will open 100 Nexa —
exclusive automotive experiences centres — showrooms in the country by
2016, a top official said.
Talking to Deccan Herald, Maruti
Suzuki India Senior Vice-President (New Channel) Marketing and Sales
Partho Banerjee said, “We have identified top 30 cities which
contributes 75 per cent of overall sales. It is not just a metro story.
By the end of the financial year, we will open 100 Nexa dealers. With an
exclusive personal relationship manager for each customer, the Nexa
dealerships will change the way Indian retail automotive is done.”
In
Karnataka, we have begun with Bengaluru. We have tapped Bengaluru
Central (St. Marks Road), and East Bengaluru (opposite to EMC Square
Mall), he said. The first Nexa dealership was opened in Delhi recently.
The company has recruited 700 relationship managers from different
backgrounds. Surprisingly, recently launched Ciaz will not be offered
through Nexa dealerships.
“Yes, Ciaz is a premium product, but
we have launched it through existing channels, and would continue to
sell there only,” Executive Director (Marketing and Sales) R S Kalsi
said. Maruti has roped in Dale Carnegie to coach the managers on soft
skills.
DH News Service
********************************
98. 'We will invest Rs 2,000 crore in CRM capacity'
The JSW Group, with its presence in multiple sectors, owns India’s leading integrated steel producer JSW Steel. Group chairman Sajjan Jindal tells Deccan Herald’sUmesh M Avvannavar that JSW Steel’s focus is now more on value-added steel, and that the company is not looking at exports in a big way.
Have you commissioned any new plant recently? Do you have plans to increase steel capacity?
We
have just commissioned our electrical steel plant and have started the
new cold rolling complex with a capacity of 2.5 million tonnes for the
automobile industry. So, right now, we are not focused on increasing
steel capacity but on value- added steel.
Are you expanding the CRM (Cold Roll Mill) capacity?
Yes,
we are further expanding it. We are closing a project to increase the
capacity from 3.5 million tonnes to five million tonnes. The project
will commence this year, and it will take two years to build. We are
planning to invest around
Rs 2,000 crore.
With improved iron ore production, what is the capacity acquisition you are looking at for this year?
The iron ore production has been increased. So partly we are importing iron ore. We will run 90-95 per cent capacity.
Any plans to import iron ore further this year?
Now
the iron ore availability has improved considerably. So, we may import
marginal amount — maybe around 10-15 per cent —roughly around two
million tonnes.
Can you throw light on infrastructure in Ballari?
It
is improving and we are also contributing to it. We are on talks with
the Railways to build a new railway station next to Toranagallu . Though
there is the Toranagallu station, we want a state-of-the-art railway
station.
Have you received any approval for the same?
We have written to the Railways and we are expecting the approval.
What happened to the slurry pipeline project? Any update?
No.
Right now, we are discussing with the Karnataka government to build a
port in Karnataka, so that the distance will come down. While from
Karwar, it is about 300-320 km, from the port in Maharashtra it is 550
km away. Hence it is not advantageous to ship from such a long distance.
So we are requesting the Karnataka government to allow or to auction
the port near Karwar.
Will it be acquired by Jindal Group?
We
can also participate, as we have the JSW Infrastructure Company. Or
anybody else can take it. The acquisition can be transparent.
Will it be captive to your own requirements?
No.
There are lots of requirements for entire industries in North
Karnataka. If a port is built or even a couple of ports are built in the
Karwar area, then it can help to boost up the hinterland and industrial
development for Kalaburagi, Ballari, Hospet, Hubballi-Dharwad, Belagavi
and Koppal, among others.
Those areas are now being fed either by Goa or Andhra Pradesh. So, why Karnataka should not have its own port?
We
had a meeting with Chief Minister Siddaramaiah and he is very positive
about it. And I think they will be coming with a policy soon.
Do you have any plans for Andhra Pradesh?
We have a cement plant in Andhra Pradesh. Other than that, for the time being we do not have any plans.
Can you comment on the export market?
With
China dumping the products at every corner of the world, the steel
export market is not good. We are not looking at exports in a big way.
Japanese automobile major Nissan is giving a
promising push to developing motorsports in India. The company feels its
well-tested concepts such as the Gran Turismo (GT) Academy, and other
innovations, have helped drive the demand for fast cars.
For
the uninitiated, Gran Turismo is a series of racing video games
developed exclusively for the PlayStation systems by developer Polyphony
Digital. GT Academy is a collaboration between Nissan, Sony (maker of
PlayStation consoles) and Polyphony to provide gamers with an
alternative route to motorsports.
Players at Nissan’s GT Academy
begin with virtual racing on PlayStation’s Gran Turismo, and try their
luck at Nissan Playstation set-ups on special gaming rigs where racing
enthusiasts try to outwit each other on a virtual circuit.
This
leads to a National Finals, from where the winners of each region
compete for real in Nissan cars at Race Camp. This experience involves
week-long testing and challenges, which can result in elimination.
“Since
2008, Race Camp has been based at Silverstone Circuit, UK, where the
title of GT Academy Winner is awarded to whoever demonstrates the
greatest potential to make the switch from Gran Turismo gamer to real
racer. Competition winners are rewarded with a place in Nissan’s Driver
Development Programme as well as entry into an international race or
series with Nissan,” Nissan India President (Operations) Guillaume
Sicard told Deccan Herald.
With the launch of Nissan GT Academy, Nissan India hopes to strengthen the brand in the country, owned by Nissan since 2008.
“We
launched GT Academy 2015 in Delhi on June 4, 2015, followed by Live
Qualifying rounds in Delhi, Mumbai, Bengaluru, and Chennai, which saw
participation of around 10,000 contestants. The GT Academy online final
qualification rounds commenced on June 2, and concluded on June 16, on
Gran Turismo 6 for PlayStation 3,” Sicard said.
At the national
finals held in Chennai on July 1, six racing enthusiasts were selected.
They will now move to Silverstone, for the ultimate race camp. There
they will compete with finalists from Japan, Thailand, Indonesia and the
Philippines in the GT Academy Asia Championship. One winner from here
will then get a chance to undergo a driver development programme and
compete for Nissan at Dubai 24-Hours.
Anybody above the age of
18, with a driving licence, can participate for GT Academy live
qualifying rounds. “The future of Indian motorsports looks bright to us.
Formula One in particular has taken off in the country in the last few
years. There is more passion and knowledge of motorsports in India.”
The
drivers are talented and eager to participate in international
motorsport racing series. We would like to create a talent pool of the
finest racing drivers from the country who can represent India at
international races. The youth of the country is very confident and
dedicated towards motorsport, and this sport can see many buyers in the
country in the near future,” Sicard said.
Umesh M Avvannavar, Bengaluru, July 10, 2015, DHNS:
Private sector lender YES Bank, which had
sought regulatory approval for setting up an asset management company
(AMC) in January, has got the RBI nod for the same.
As
per media reports, the bank has earmarked Rs 50 crore for the business.
At present, there are 45 mutual fund houses in the country with asset
under management (AUMs) about Rs 12 lakh crore.
In an email
response, Yes Bank Senior Group President (Branch and Retail Banking)
Pralay Mondal confirmed that the bank has got the RBI approval.
“The
AMC business will augment YES Securities Business further and also
augment the wealth management business which the bank is actively
looking into as it grows the retail banking proposition,” Mondal said.
To
strengthen its retail credit portfolio, the bank aims to enter the
credit card business soon. Mondal said, “Credit cards are the only
missing product from our retail product suite and we plan to launch the
same by early next year as it takes about 12-18 months for incubating
and launching the product. We have already hired the leadership team
which is now involved in setting up the same.”
On retail
business, Mondal said, “Our retail business has grown beautifully over a
small period and is ready to take leap for the next stage of growth
where it will contribute increasingly for the profitability for the
bank. We have already finished the heavy lifting on liabilities which is
visible in five year CASA (current account and savings account) CAGR
(compound annual growth rate) of 50 per cent and CASA ratio increase
from 10.5 per cent to 23 per cent in past five years. Total retail
deposits (CASA+TDs) comprise almost 50 per cent of our deposits. Today,
we have over 1.53 million liability accounts.”
Mondal’s statement
has to be seen in the light of the recent downgrade of YES Bank by
brokerage firm UBS. The brokerage was apprehensive that YES Bank could
disappoint on the asset quality as well as CASA and retail business
front.
Social media push
Recently, YES
Bank entered into an industry-first tie-up with Twitter for a
missed-call facility that sends SMS-based tweets to stakeholders who do
not have an online Twitter account, thereby helping it penetrate deeper
into the retail segment.
Mondal said YES Bank will also be soon
launching secured banking and financial transactions on as many as ten
social media messengers and facilitate payments to most of the wallet
providers and large eCom apps.
Watch out! DH's test-driver feels that Maruti's brand
new offering is ready to upend the SUV turf with its game changer
diesel engine, 23 kmpl mileage
Maruti Suzuki, the
country’s largest carmaker, is back with a bang. Fresh from the success
of the premium sedan Ciaz, the new baby S-Cross has arrived, which
combines the power and performance of an SUV (sports utility vehicle)
with the comfort and premium ambience of a sedan.
What
is an S-Cross? No, it is not a complete SUV. Maruti believes in creating
a new segment, with a blend of sedan and SUV. It is a new premium
crossover which is built on a brand new platform.
Readers please
make a note that if you wish to buy the S-Cross, you need to walk into
your nearest NEXA showroom, which is the new premium automotive
experience by Maruti Suzuki. In Bengaluru, there will be four NEXA
outlets.
The exteriors
At first look, I
am not completely bowled over. Of course, the expectation levels are
always on the higher side for any new product from Maruti. They have
wowed the market with Ciaz. Maybe, this time, one will fall in love
slowly with the S-Cross.
In all fairness, the rear looks nice and
elegant with its attractive angular tail lamps. It also comes with
black plastic body cladding. The scuff plates, and premium silver skid
plate garnishes complete the very sporty look.
Just a quibble,
though. Hardly anyone can recognise the roof rails of the S-Cross.
Contrast this with Wagon-R, where one can make out the roof rails from
afar.
The drive
It was on a cloudy
morning in the holy city of Nashik that I began my journey with the
S-Cross. An admirable feature of this car is its 1.6-litre (118 bhp),
powerful DDiS (dual digital ignition system) 320 diesel engine, which
delivers a maximum torque of 320 Nm@1,750 rpm.
The company
claims a mileage of 22.7 kmpl. One can race from 0-100 kmph in just 11.3
seconds. I can vouch for this engine, as this will be a game changer, a
big selling point for the company. The DDiS320 engine will be imported
from Fiat Europe. You must drive this car to feel how the turbocharger
kicks in. The variable geometry turbocharger (VGT) ensures high torque
even at low revs.
One cannot miss the sixth gear. The S-Cross
introduces a six-speed manual transmission, which features
self-adjusting clutch mechanism for the first time by Maruti Suzuki.
This spring-loaded clutch mechanism ensures that the driver enjoys a
smooth experience over the complete life of the disc. It helps to adjust
for normal wear and tear during usage, thus making it comfortable for
the user.
Yes it comes with only manual transmission. This was
how Maruti put it, “Our research shows that penetration of AT is very
low (roughly under 5 per cent) in this segment. Hence, we are focusing
on manual transmission.”
One more variant, the 1.3-litre (89 bhp)
DDiS 200 trim, delivers maximum torque of 200Nm@1,750 rpm with 23.65
kmpl fuel efficiency. It zips to 0-100 in 13.2 seconds.
Surprisingly, the company has come out with only diesel variants.
Maruti
believes that petrol penetration in this segment is less than four per
cent. In diesel, the torque is much higher compared with petrol.
Also,
a company official said that it is outdated thinking that diesel
engines are noisy and the cost of maintenance is more. With CRDi (common
rail direct injection) technology, the NVH (noise vibration and
harshness) levels are less, and even maintenance too comes easy on the
wallet, he said.
The S-Cross has a synchronised reverse gear,
which is a constant mesh gear shift mechanism. This mechanism offers
premium reverse gear engagement and adds to a driver’s delight. The
all-wheel disc brakes help in better dissipation for more stabilised
braking and offers an overall enhanced brake performance. The dual-side
airbags and Hi-Tensile steel body keep occupants safe.
Just like
an SUV, it has excellent views and good road presence for enhanced
handling, cornering, and stability. The green mountainous section drive
was so convenient for me, thanks to the S-Cross’s electronic power
steering for fatigue-free drive and the 5.2 m turning radius, which
helps to manoeuvre the car easily.
The interiors
It
started drizzling, and to my surprise, the rain-sensing auto wiper came
to life, and did its job well, making me conscious of the S-Cross’s
interiors. The auto dimming, Inside Rear View Mirrors (IRVM)
automatically detects lighting conditions through its sensors. It
adjusts the reflective angle and reduces the glare coming from the rear
traffic at night. This enhances the driver’s visibility and safety.
I
was expecting the same beige interiors like in the premium sedan Ciaz.
Honestly, I am in love with Ciaz. Maybe Maruti believes that dark
interiors would be better for a sporty looking car like the S-Cross.
Nevertheless, I was impressed by the spacious interiors of headroom and
legroom not only in the front row, but also in the back. The 60:40 rear
seat split with two-step recline helps to add more boot space. It varies
from 353 to 810 litres.
It turned humid on approaching noon.
Unfortunately, had there been any passengers in the rear looking for an
auto AC vent, they wouldn’t have found one, for the car lacks this basic
requirement in this segment.
The other important features
include cruise control, and smartplay infotainment system (18-cm touch
panel) with reverse parking camera.The price range is expected above Rs
10 lakh. The S-Cross will be launched in early August.
Umesh M Avvannavar and Hrithik Kiran Bagade, July 15, 2015, DHNS
Go for it! Racing the Mercedes-Benz E-Class Cabriolet
with its soft-top roof lowered is like letting your hair down for a
heady adventure, say DH's test-drivers. With its peppy,
sporty build and regal bearing, it sure is a head-turner
Call it pure pleasure,
the finesse of German engineering, or both! It’s hard to find words
that best describe the experience while gliding in the luxury of a
Mercedes-Benz beauty. The marquee premium carmaker has surprised India
with many a remarkable offering that suit those with a taste for
ultimate luxury. The tri-star Mercedes logo is an enduring presence, a
promise of style, substance, and safety.
The E-Class
has held a pride of place as a much sought-after model from the Mercedes
stable in India. Ready for the next leg of its journey, the
Mercedes-Benz recently rolled out the E-Class Cabriolet, a well-crafted
machine. Before narrating our experience with the E-Class Cabriolet, a
little background would help.
A cabriolet originally referred to
a light, horse-drawn vehicle, with two wheels and a single horse. The
uniqueness of the carriage was a folding hood that covered its two
occupants, one of whom was the driver.
Soft top, tough looks
In
later decades, the cabriolet concept was adopted by carmakers who added
it as a distinguishing design feature. A largely luxury car concept, in
modern parlance a cabriolet (AKA convertible) is an automobile body
style that can convert between an open-air mode and an enclosed one,
varying in degree and means by model. Convertibles evolved from the
earlier phaeton, an open vehicle without glass side windows that may
have had removable panels of fabric or other material for protection
from the elements.
The Mercedes-Benz E-Class Cabriolet is a part
of the company’s ‘15 in 15’ strategy (which involves many car launches
this year), and is positioned in the top-end segment. A compact body
build retains the sleek features of the E-Class sedan; the Cabriolet,
though, adds new style capabilities.
The E-Class Cabriolet calls
for an enticing drive, and that’s what we do, one sunny weekday
afternoon. The shiny white car packs in a peppy, sporty build, along
with a regal bearing.
At a length of 4,699 mm, the E-Class
Cabriolet is quite a big car with its smart, two-door design. On the
front, the Cabriolet carries a pretty dual headlight arrangement around a
well-placed single-slat grille and curvier front bumper. The car’s
supremely sculpted lines draw all the way to the rear, where they open
up to new tail lamps with LED detailing, and a new bumper that hides the
dual exhausts. The fresh elements fused together are pleasing to the
eye.
The most impressive exterior feature yet of the E-Class
Cabriolet is the contrasted colour schemes of its soft-top fabric roof
against the white body of the car. But the car looks best with its 23.5
mm thick three-component fabric soft top tucked firmly within the boot,
the hallmark of any Cabriolet. The sight of this, coupled with its
muscular bearing, makes the car a stunner.
Sporty, yet luxe ambience
The
new E-Class Cabriolet features an interior, thoroughly done up to bring
in design harmony. The car is the blend of a sporty character in a
luxurious ambience. The ergonomic cockpit has a very comfortable seating
for four (three plus one), which suits all drivers on all kinds of
drives. The seats pack in premium leather upholstery, made elegant by
the Nappa leather dashboard with contrast stitching. The centre console
integrates the Harman Kardon Logic 7: 610 watt music system with 14
speakers, whose musical tones and effects can be felt even with the
soft-top down.
The pleasure of driving an E-Class Cabriolet is
especially to be had with the soft-top roof tucked down. Once inside, we
are able to experience the wholesome comfort its interiors offer. Being
a two-door car, the four-seater is spacious enough to seat even taller
occupants.
Our plan is to take the E-Class Cabriolet a little
outside Bengaluru, to experience its thrill at different speeds and see
how it manages the traffic challenges thrown at it. The quaint temple
hamlet of Ghati Subramanya, through inclined green stretches of road, is
our destination.
It’s quite a task to drive a premium car at
high speed and navigate it through the various roadblocks and traffic
snarls that are commonplace in India. The electrically powered acoustic
soft top raises and lowers at the touch of a button in 20 seconds, even
while the car is gliding at a pace of not more than 40 kmph.
As
soon as the roof is down, the automatic belt feeder stretches out to
help the driver and co-driver reach out to the seat belt with ease,
before retreating to its original position once the belts have been
firmly fastened.
We begin by slowly hitting the accelerator, and bringing the almost noiseless car to life.
A
few revs later, the E400 Cabriolet has taken off with us on board,
heading through the busy roads leading to Ghati Subramanya. The road
gets wider at a junction with scant traffic, and it is here that we push
the pedal to hit higher speeds. From 0-100 km takes only a little over
five seconds, while the top speed is far above 200 kmph
Fast metal, smooth drive
The
car’s six-cylinder engine takes any challenge on the road by its horns,
as it darts its way through. The 2,996-cc petrol engine is robust and
stays true to the reputation of Mercedes as a name in brilliant
automobile engineering. The car is able to smoothly accelerate to higher
speeds, at the same time swiftly dropping to a crawl depending on the
need. With a maximum engine output of 245 kW (333) hp @ 5,250-6,000 rpm
at a maximum torque of 480 Nm @ 1,600-4,000 rpm, the car is indeed a
very fast machine, and can climb well on inclined roads.
The day
presents us with unusually heavy traffic, with trucks and regional buses
plying on the way to our destination. This is a piece of cake for the
fast and peppy E400 Cabriolet, whose Agility Control Suspension, and
turning diameter of 11.15 metres, ensures that the car is able to
manoeuvre itself well, while maintaining consistent speeds.
While
the roof is down, the innovative AIRCAP wind deflector reduces in-cabin
noise and turbulence, and makes the drive even more pleasing and safe.
The E-Class Cabriolet’s body shell is made up of high tensile steel,
designed to provide optimum safety.
The integral roll-over bars
are extended in less than 0.3 seconds, during which time the rear head
restraints move into the highest possible position. The nine airbags on
board offer a sense of care and concern that the carmaker has for its
customers.
One of the most unique features of the car — a first
in India — is the integration of cloud-based Mercedes-Benz apps, which
helps occupants to be connected and well in touch with the world while
on the road. The apps offer unrestricted internet surfing, access to
Mercedes-Benz Radio, Tune-in Radio, weather, audio, news, and Facebook,
among other resources. We are impressed by the thoughtful utilisation of
this sort of media convergence that is so much the need of the hour.
A Mercedes-Benz E400 Cabriolet may be possessed at a hefty price of Rs 79.9 lakh (ex-showroom Bengaluru).
Approaching
our destination, the sun above has compelled us to raise the soft-top
roof, but the comfort within the cabin is intact. Except for the lower
ground clearance, the car is sheer grace. Even here, we would blame it
on the bad roads which can do with some good engineering themselves.
Mercedes-Benz E400 Cabriolet Smart Specs:
Number of Cylinders/ Arrangement 6/V
Total Displacement 2,996 cc
Rated output in kW (hp) @ rpm 245 (333)
@5,250-6,000
Acceleration 0-100 kmph 5.3 seconds
Turning Diameter 11.15 metres
Hrithik Kiran Bagade and Umesh M Avvannavar, July 15, 2015, DHNS
Wonder car! With its 110-litre luggage space, keyless
central locking, signature steering wheel, and AMT system, GenX Nano
has just spiced up the store
When Tata Motors
unveiled its Rs 1-lakh car, the Nano, over ten years ago, a flurry of
expectations followed, which added to the reputation of ‘the world’s
cheapest car’. In the last many years, the Nano has had its share of
upgrades, modifications, and alterations, which may have hiked its
pricing a little.
Come 2015, and it’s time to push the
humble Nano into the big league. Tata has rolled out the GenX Nano, a
fully-loaded car, with many tricks and treats up its sleeve that may
even put many larger competitors to shame.
The earlier Nano
lacked many essential elements that a buyer asked for in his/her car,
but the GenX provides all of that and more, and at each juncture, it
astounds one with how the company could suddenly beef up a no-frills
model with a treasure trove of features.
Tallboy with sporty mien
On
the outside, nothing much has changed though. The Nano retains its cute
tallboy design, with the same cuts and chisels, barring a few new
cosmetic embellishments. Inspired by the ‘Infinity’ symbol, the GenX
Nano incorporates newer design cues to emulate a sporty attitude.
The
front and rear bumpers with the Infinity motif grille, the front
flanked by smoked headlamps with black bezel and circular fog lamps, add
fresh style to the not-so-young car. Apart from that, the
well-integrated tailgate spoiler is no ‘spoiler’, as it gives more marks
to the new Nano. And in a first, the GenX Nano has a 110-litre luggage
space.
The keyless remote central locking system is unique to the
GenX Nano in the family, which helps us gain easy access to the car.
The system is fool-proof, and a segment first, so to say.
Though
the interiors carry the typical Nano dashboard, several new additions
and colour themes add a tinge of sophistication. We are pleasantly
surprised with the integrated audio system that remains well tucked into
the bottom of the centre console. The GenX Nano has put in a new
infotainment console with AmphiStream music system and Bluetooth
connectivity. The new generation dual-tone Tata signature steering wheel
(as on the Zest and the Bolt) is very appealing. Besides, the pair of
glove boxes on the dash are an intelligent addition, carrying on from
similar innovations on earlier Nanos, which were far simpler.
The
instrument panel is better crafted, unlike the car’s predecessors that
carried a very spartan two-wheeler sort of design. The new digital
information panel is a fine cluster of speedometer, fuel consumption
gauge, trip meter, gear shift indicator, distance-to-empty meter, and
average fuel consumption. If the plush, black seating is not welcoming
enough, the class-leading space of the Nano continues to captivate.
A new shift with AMT
The
Tata GenX Nano XTA with Easy Shift is a pleasure to drive, and is miles
ahead of its earlier versions — an achievement for the Nano team. We
take the car down the highway from Bengaluru leading to Hyderabad, to
see how well the car takes on the challenges of the road in all
settings. Being a family car, a busy traffic road or the highway seems
to be ideal to try the GenX Nano.
The best addition yet to the
car’s range of new features is the introduction of the automated manual
transmission (AMT) system. The car’s power remains the same with its 624
cc, two-cylinder petrol engine, dishing out 38 PS @ 5,500 +/- 250 rpm,
with a maximum torque of 51 Nm @ 4,000 +/- 500 rpm. But with the Easy
Shift (AMT) in place, the drive is a breeze.
Unlike the manual
Nano, which gasps for more and more acceleration, especially while
hitting inclines, the GenX Nano tends to coolly glide its way through.
We
find that on the Auto Mode, the car’s engine is able to conveniently
jump between gears (four in total), even as the power does not
drastically dip, while at the same time maintaining consistency in
speed.
The car smoothly picks up speed on hitting the gas pedal, and calmly slows down when the brake pedal is pressed.
The
GenX Nano also has a Sports Mode, which powers up the vehicle at
enhanced accelerations, and we are able to pick up speeds faster. We
find that the car is able to reach a top speed of above 105 kmph,
another new for the Nano (even with the AC at full power). The car
continues to hold onto a competitive fuel efficiency of 21.9 kmpl.
When
we tire of the Auto Mode, we change to Shift Assisted Manual Mode,
which helps us to choose our gears as we wish. The AMT system on the
Nano is quite robust in build quality, but it must be mentioned that the
Auto Mode works more seamlessly, with the Manual Mode bringing in a bit
of drag.
But the best part is even when we drive through a few
inclines and hilly passes, the automatic Nano (with four adults inside)
is able to climb without much shudder, assuring a sense of safety to the
occupants.
Also, to beat the irritations on the road, a peppy
turning radius of four metres is the answer, coupled with an advanced
ECU (engine control unit) developed with Bosch. In addition, ePAS
(Electric Power-Assisted Steering) adds fresh flavour and is an amazing
experience while driving the small hatch.
Just remember that the
brakes still tend to be annoyingly less responsive in traffic, when the
car is slowing to a halt, though we find that the car jerks to an abrupt
stop when we jam the brake pedal hard. But the car is still a safe bet
with its impact cushioning crumple zone, and anti-roll bar for high
speed stability.
Tata Motors has indeed built a much better Nano, a new car for a newer generation.
The
top-end GenX Nano XTA is available in seven colours and retails at Rs
2,00,900 (ex-showroom Bengaluru). The story of the small car just got
more interesting. Competition, anyone?
Tata GenX Nano Easy Shift All-new Specs
Engine Type:
624 cc, 2 cylinders gasoline, MPFI
Max Speed: 105 kmph
Transmission: (XMA, XTA) Easy Shift (AMT) with Sports Mode
Steering System:
Electric Power Assisted (brushless type) with active return
feature
Luggage Space:
94 litres (Easy Shift)
Umesh M Avvannavar, BENGALURU: July 18, 2015, dhns:
After Bosch, Consul-General Rohde joins chorus
Days after auto component giant Bosch said it
was contemplating on moving out of Karnataka for delay in approvals,
German consul-general in Bengaluru Jörn Rohde slammed the State
government for being complacent.
In a one-to-one
conversation with Deccan Herald, Rohde said “not everything is okay with
the Karnataka government”and that “there is big room for improvement”.
Rohde
spoke on the sidelines of an event organised here by the Federation of
Karnataka Chambers of Commerce and Industry (FKCCI) where the
consul-general announced German-led initiative to support Indian SMEs
(small and medium enterprises).
Taking a dig at the Global
Investors’ Meet (GIM) scheduled for November 23-25, the consul-general
said getting existing companies to say this is a great place to invest
“would be more convincing than handing out coloured brochures”.
Rohde’s
statement comes just a month after Steffen Berns, India head of the
€49-billion German giant Bosch, took the lectern at another business
chamber-organised event (Bangalore Chambers of Industry and Commerce
AGM) to announce that the company was thinking of ditching Karnataka.
Berns had lamented about Bosch facing issues despite its presence in the state for more than 60 years.
On Friday, the consul-general drew an even older connect for Germany, which was not working well.
‘History of association’
“Germany
has a long history of association with Karnataka since World War II.
But Pune is more dynamic than Bengaluru as far as manufacturing
investments are concerned. My strong view I want to make here is this.
Ten-years-ago Bengaluru had more German companies than Pune.
The
number of German companies here is still growing, but Pune has 300
German companies compared with Bengaluru, which has just 180,”said
Rohde.
The consul-general then spoke about Berns comment: “If you
remember, Steffen Berns had given a speech a few weeks ago expressing
dissatisfaction. I wish to say that not everything is okay with the
Karnataka government...there is big room for improvement. But I still
feel that Bengaluru is a happening place, there are lots of
opportunities here. We should all work together and maybe we can come
back to a situation where we were 10 years ago.”
When asked why
German companies were opting for Pune, Rohde did not mince words when he
said, “There is little bit of complacency in Karnataka. The time taken
in Karnataka for approvals is more when compared with Maharashtra or
even some other states. Investment decisions are made where parameters
are the best. It shows that Pune is more dynamic than Bengaluru.”
Umesh M Avvannavar, July 19, 2015, Bengaluru, DHNS
The government’s reform agenda is leading to
more inflow of capital into India, even as it improves the overall
market environment. Hence, retail participation is increasing in the
equity market, according to HDFC Securities MD and CEO Dhiraj Relli.
HDFC
Securities, a subsidiary of HDFC Bank, is one of India’s premier
broking houses for retail and institutional participants. The CEO says
even though equity is a riskier asset class, there are hardly any
returns available to customers elsewhere. “So if you really want some
real returns, you will have to take the risk and invest in equities,” he
said.
He added, “In the last ten years, the market has given
about 14-15 per cent kind of returns on an average. But the last year
was exceptional when the equity market delivered about 28-30 per cent
returns.”
Relli believes now is the right time for someone to
participate in the stock market. Even though earnings in the last
quarter were disappointing, he said earnings should start showing an
uptrend from the third quarter. He stressed that stability in oil prices
will lower the cost of borrowings, directly improving bottom lines.
“When earnings improve, it gets reflected in the share pricing,” he
said.
Retailers miss the bus
According to
Relli, retail investors are always the last to enter the market. They
wait for the market to go up or enter during the peak of the market. “My
suggestion to retail investors is to invest in the equity market using
the DIYSIP route, and not to enter when the market is already at its
peak. Currently, valuations are up and it is a good time to invest in
the markets.”
He said HDFC Securities has launched the
first-of-its-kind application available in 12 languages. The
multilingual application is available on the Android platform. But other
applications are available for iOS and Blackberry as well, he said.
According to Relli, trading over mobile has tripled in the last one
year. “Right now, 10-12 per cent of our trade comes from the mobile
application. We see participants from smaller towns from Karnataka. With
the launch of the multilingual app, we expect mobile trading volumes to
double every year, at least for the next three years,” he said.
“In
Karnataka, we currently have 12 branches; five in Bengaluru and seven
in district headquarters — Ballari, Mangaluru, Mysuru, Hubballi,
Gulbarga, Davangere, and Belagavi. We are looking to add at least five
to seven branches in Bengaluru and will look for opportunities in
upcountry markets as well,” the CEO added.
He said HDFC Securities currently has 250 branches present in 185 cities and is looking forward to add 50 more branches.
Umesh M Avvannavar, BENGALURU: July 31, 2015, DHNS
Public sector lender Vijaya Bank on Thursday
reported 11.68 per cent decline in net profit at Rs 142.59 crore for the
first quarter ended June 30, 2015. The bank had reported net profit of
Rs 161.46 crore in the corresponding quarter last year.
Taking
to Deccan Herald, Vijaya Bank MD and CEO Kishore Kumar Sansi said, “Our
NPA provisioning have increased to Rs 250 crore as against Rs 127 crore
during the corresponding quarter last year. We feel that the worst is
over for our bank, whatever provisions we have to make, we have made
ample provisions and going forward, we are guiding for an increase in
operating profit for the next quarter. Gross and net non-performing
asset (NPA) ratio should be less than three and two per cent
respectively by March 2016.”
He added, "There has been not even a
single account restructured during the quarter. In fact there has been
reduction of Rs 200 crore in our restructured portfolio sequentially as
we have been able to upgrade some accounts which have become standard.”
Shareholders nod
On
raising capital, Sansi said, “We have given a presentation to the
Ministry of Finance demonstrating a capital requirement of Rs 500 crore
for next four to five years. We have taken permission from shareholders
and the Board. We are expecting the approval from the government and
will be able to raise funds in Q3 of the current financial year through
the QIP mode.”
The bank’s total income increased marginally by
three per cent to Rs 3,289.05 crore compared with Rs 3,189.95 crore. The
operating profit was up 35.40 per cent to Rs 392.75 crore compared with
Rs 290.05 crore.
Net Interest Income (NII) ), or the difference
between the interest earned on loans and the interest paid on deposits
stood at Rs 662.23 crore in the fiscal quarter, an increase by 23.67 per
cent to Rs 535.48 crore.
The public sector lender’s other income
rose 19.37 per cent to Rs 198.40 crore compared with Rs 166.20 crore.
The gross NPAs as a percentage of total advances rose to 3.39 per cent
during the quarter, from 2.68 per cent in the year-ago period.
The net NPA ratio also increased to 2.45 per cent from 1.77 per cent at the end of June 2014.
*******************************
106. Tata Sky aims to reach 4,500 towns in Karnataka
Umesh M Avvannavar, August 9, 2015,Bengaluru, DHNS
Tata Sky, India’s leading Direct-To-Home (DTH)
service provider aims to reach 4,500 towns in Karnataka, a top
executive said on Saturday.
Talking to Deccan Herald,
Tata Sky Chief Sales Officer Saleem Shaikh said, “Karnataka is one of
the important markets for us. We are present in 2,500 towns covering
over 80 per cent of the population and we aim to reach 4,500 towns by
end of this fiscal.”
Tata Sky currently has 10,000 dealer outlets
through local shops across 2,500 towns and villages in the state. The
company has a market share of 40 per cent in rural areas and 25 per cent
in urban areas, to add up to an overall 30 per cent in Karnataka.
How
difficult is to achieve this target? Shaikh said, “It is extremely
difficult in penetrating rural market as we don’t have dealers. We are
identifying people into repair workshops for fridge and TV, and giving
them training to make them part of our dealer network.”
He
further said the objective of the company is to ensure that “every pin
code and village should have Tata Sky dealers". In urban areas we wish
to have multiple dealers and in rural areas at least one, he said. Tata
Sky currently has 13 call centres in 13 locations catering to multiple
languages in the country.
The total digitised market size in
India is 120 million as of 2014 with 50 million DTH set top boxes (STB),
with the remaining 70 million STBs installed by MSOs (Multi System
Operators). DTH as a sector today is growing at an average of 11-12 per
cent while Tata Sky claims to be the leader as the fastest growing DTH
brand over the last 2-3 years.
As per the survey, there are 170
million digital households in India, out of which Tata Sky has a
customer base of 14.5 million with a market share of 19-20 per cent. It
has presence in six lakh villages supported by 2,10,000 dealers in the
country. “One in every three customers opt for DTH in India is a Tata
Sky subscriber,” Shaikh claimed.
Tata Sky has roped in Kannada
actor Sudeep to promote My 99 (Nanna 99) pack which allows customers to
get varied regional channels at a reasonable cost along with a base pack
of only Rs 99. The company claimed Nanna 99 powered a jump of over 40
per cent in subscriber growth in Karnataka. Advantage digitisation
The
deadline for digitisation of Phase-III is December this year, with
focus on South India, covering 1,200 towns. “Tata Sky sees big
opportunities in helping the cause of digitisation in the southern
market and further consolidates the market position. At present, the
service brings in 95 per cent of channels to home subscribers,” Shaikh
said.
When asked about the competition coming from Sun TV down
south, Shaikh said, the company’s focus is more on converting viewers
from analogue to DTH rather than converting them from Sun TV to Tata
Sky. “The moment we do that, naturally, the customer comes to us.” He
further said that the company has stopped looking at competition in DTH
two years back.
Umesh M Avvannavar, Bengaluru, August 14, 2015 DHNS:
Pune-based Garware-Wall Ropes (GWRL), a leading
player in the technical textile segment supplying products to
agriculture, fisheries, aquaculture, geo-textiles and defence industry,
is eyeing Rs 100 crore revenues from the defence vertical alone in the
next four to five years, a top executive said on Thursday.
“We
have entered the defence sector recently (2013-14). We produce
aerostats (hot-air balloons) and radomes (a structure protecting radar
equipment) at our Wai (near Pune) plant. We aim to push the ‘Make in
India’ initiative, and do our bit to reduce imports in the defence
sector,” Garware-Wall Ropes President and Chief Operating Officer
Shujaul Rehman said.
The defence forces use aerostats for air surveillance. The company has two manufacturing units at Wai and Pune in Maharashtra.
“We
are collaborating with ADRDE (Aerial Delivery Research and Development
Establishment), a wing of DRDO. It is a joint development in order to
make the product indigenous. We are in the process of commercialising
the products soon,” Rehman said.
Products imported in the
technical textile space used for defence applications are around Rs
1,200 crore. From this pie, the company is targeting Rs 100 crore in the
next four to five years, Rehman added.
Salmon aquaculture
GWRL
is a global market leader in salmon aquaculture with presence in all
key markets. The company aims to establish its presence in the critical
market of South America, mainly in Chile.
Salmon is farmed in the
colder environments of Europe and America. It is farmed at sea and
covered from all sides through cages to ensure the fishes don’t escape
into the water. Another layer of predator cover nets provided by GRWL
keep away predators like sea lions and seals. GWRL is the leader in
marine fishing in India with a market share of 70 per cent.
Its products help fishermen get better catches with reduced fuel
consumption, thereby improving their earnings. GWRL is present in 75
countries, and more than 50 per cent of its revenues come from exports.
The
company forayed into protected farming three years ago. The country has
immense opportunities to carry out protected cultivation in
horticulture, floriculture, etc., currently just 0.5 per cent of total
acreage, compared with 65-70 per cent in Israel, Spain, and the
Netherlands, Rehman said. The government of India is also driving
protected cultivation by giving 40-50 per cent subsidy.
GWRL revenues are poised to increase from Rs 800 crore to Rs 1,000 crore in the next two years, Rehman said. The company’s revenues for 2014-15 stood at Rs 785 crore, of which 55 per cent is from exports and 45 per cent from the domestic market.
Umesh M Avvannavar, August 16, 2015, Bengaluru, DHNS
Saw consistent growth in 18 months from Rs 300 crore, says CIO
Kotak Mahindra Asset
Management Company, which is a wholly owned subsidiary of Kotak Mahindra
Bank, on Saturday said that Kotak Select Focus Fund is now a half a
billion dollar fund.
Talking to Deccan Herald, Kotak
Mahindra Asset Management Company Chief Investment Officer (Equity)
Harsha Upadhyaya said that Kotak Select Focus Fund, an open ended equity
scheme which was launched on September 11, 2009, has recently touched
about Rs 3,200 crore.
Upadhyaya explains, “This is a fund which
has grown from about less than 300 crore, may be about 18 months back,
to about 3,200 crore now. The fund has delivered consistent performance.
Over the last 18 months, the fund has consistently been getting inflows
from investors.”
Specific segments
He
added, “This is a fund based on a top-down investment approach, by which
we mean at every point of economic cycle there are few industry
segments which will do better than the rest of the economy. We try to
focus on those specific segments and build our investment ideas. For
example, if you believe that domestic economy is on the recovery path,
then you will start betting on companies in the domestic segment.”
When
asked on the sectors Kotak is betting on, he said, “Currently, we are
betting on the automobile sector, cement sector, and capital goods.
These are the three overweight sectors.”
On AUMs (assets under
management), Upadhyaya said, “For the last several months we have been
seeing about Rs 5,000 crore – Rs 6,000 crore of net inflows into equity
funds. July was slightly subdued, may be at around Rs 3,000 crore – Rs
3,500 crore. The Mutual Fund industry’s aggregate equity AUM has nearly
doubled to Rs 1,317,267 crore as of July 2015 over the last two years or
so.”
MF industry in good nick
The size
of Indian MF (mutual fund) industry is more than Rs 13 lakh crore,
Upadhyaya said. “The growth keeps varying, but the last 18-24 months
have been very good because, one, there has been some turnaround in the
economic activity, plus there is definitely a move away from physical
assets such as gold and real estate into financial assets. But of the 13
lakh crore, equity would be about Rs 3,53,000 crore,” he said.
Upadhyaya
feels that equities are likely to be moderate in 2015 compared with
2014. “That is because last calendar year if you look at large cap funds
they gave anywhere between 40-45 per cent returns, and mid-caps gave
80-100 per cent returns. From that context we were saying that this year
is unlikely to be the same as last year.”
“You will still get
positive returns but they will be more moderate than what it was in
2014. Our expectation at the beginning of 2015 was this year will see
close to low double-digit kind of returns and we continue to hold that
view.”
Umesh M Avvannavar, Hrithik Kiran Bagade and Shruthi H M, August 19, 2015, DHNS
HEAD-TURNER!
The Indian car market
has evolved. What once used to be regarded as an arena where affordable
hatches were pitted against each other, has turned into a ring where
affordable premium utility vehicles and crossovers are battling it out.
Customer awareness has increased, and demands have grown. And looking at
the marvellous machines now on offer across the country, automobile
majors have been only too eager to oblige.
A few years
ago, a premium car meant an expensive proposition put up for sale by a
luxury carmaker, which had few rich patrons as takers. Today’s young and
affluent are looking for a new experience, which is reasonably priced,
yet distinct. The booming B+ segment, which is also the niche where
competition is the most intense, is looking to cater to just this
demand.
South Korean auto giant Hyundai, which is India’s second
largest carmaker, recently rolled out the Creta, a global SUV (sports
utility vehicle) which it has claimed for the new generation. The word
‘Creta’ is derived from the word ‘create’, and yes at first glance, the
Creta is a lovely creation. The company claims the Creta to be an SUV
with a unique and innovative form, representing a complete package of
style, dynamism, and practicality.
Exteriors: Clearly bold
On
first setting our eyes on the car, its bulky, yet sleek stance wowed
us. The young SUV boasts of an aggressive design, and carries many
elements of its larger sibling ‘Santa Fe’. At an imposing length of
4,270 mm, width of 1,780 mm, and height of 1,630 mm, the Creta sure is
impressive. The design seems to flow from Hyundai’s hallmark Fluidic
Sculpture 2.0 philosophy, with the refinements lending a modern and
premium touch. The car’s exterior appeal conveys a strong road presence.
The Creta’s triple slat chrome radiator grille makes a bold statement,
while the smoothly creased hood, projector headlamps integrated with LED
positioning lamps, vertical fog lamps, sporty stylish skid plate, and
dual-tone front bumper enhances the vehicle’s strong and distinctive SUV
character.
A few other exterior features that stand out are the
car’s rising beltline with sloping roofline, and the dynamic character
lines that grant a sporty and aerodynamic splash to the side profile.
The rear profile showcases a stylish dual-layered step tailgate design with impactful crease lines.
Topping
it all up, like cherry on the cake, are the extremely good-looking
diamond-cut 17-inch alloy wheels promising an enjoyable driving
experience.
The fact remains that the Creta is one of the
largest cars in its segment, and its robustness assures one of the
immense space that the interiors present.
Interiors: Style rules
The
roominess of the Creta is inviting. The car’s stylish and bold
appearance harmonises well with its smart and high-quality premium
interiors; achieved by a combination of high-grade material. It’s like
entering a new-age zone with a nice mix of technology, space, and plush
and comfy seating. Looking further, we find that the well-cushioned and
comfortable seats offer optimum thigh and back support, giving a sense
of added security while on the drive.
Also, the seats are covered in full-leather upholstery, exuding a sense of modernity and luxury.
There is enough space in the front and the back to offer a comfortable long drive in the Creta for five (including the driver).
The
dashboard is dotted with several futuristic elements shaped by the
water flow-inspired design. The overall ambience makes the cabin
environment pleasing and enjoyable. For rear passengers, the rear aircon
vent and seat centre armrest with cup-holders are an added bonus,
besides the seating comfort they will experience. The car offers few
thoughtful features such as full- automatic temperature control and
electric folding ORVM (outside rear view mirror), which add an extra
touch of premium to the Creta.
The next generation infotainment
system seamlessly connects all gadgets and devices. The SUV’s multimedia
system carries a seven-inch Audio Video Navigation (AVN) with
six-speaker sound system, which also features Advance Touch interface,
maps, video playing and image viewing capability through USB, Bluetooth
support, and rear camera display.
Adding to the entertainment
package is an option of five-inch touch screen audio system that
features Aux-in, iPod, USB, MP3, CD, and Bluetooth support with 1 GB
memory.
The drive: A great city car
It’s imperative for any
premium car today to provide a few essential features, so it can earn
the ‘premium’ tag. Hyundai has paid much attention to this aspect, and
we get a smart key with push-button start. The Creta and we are away.
It’s close to noon in Bengaluru, and the morning rush hour is slowly
building up. There is a good amount of traffic on the road, and where we
thought it would be a challenge for a mid-sized SUV to negotiate
through all the traffic, the Creta surprises us by finding its way
through the little gaps quite effortlessly, proving that it’s a great
city car.
The car that we are driving is charged by a refined,
powerful petrol engine. The Hyundai Creta 1.6-Gamma Dual VTVT Petrol
Engine has an engine capacity of 1,591 cc, dishing out maximum power of
123 ps/6,400 rpm @, and maximum torque of 15.4 kgm/4,850 rpm.
We find
that the car is quite responsive to the acceleration at first gear, and
immediately takes off to a reasonable pace of around 60 kmph. The car
does gather enough city road despite the many ditches and puddles that
the Bengaluru roads are infamous for.
The six-speed manual
transmission on the petrol version is a good addition, but it must be
said that there is a little lag that we feel between gear shifts, and as
the car picks up more speed, the gears must be shifted more regularly.
And for a 1.6-litre engine, the SUV feels a tad underpowered.
We
head to the grape-growing belt outside Bengaluru, away from the traffic
din, and to see how the Creta performs on open roads. The area is lush
with all the green environs welcoming us for some auto adventures to be
had. We pep up the accel pedal, and again, the engine’s turbo lag is
sensed. For an SUV, the Creta’s petrol engine gradually picks up speed,
even as it touches speeds in excess of over 160 kmph, eventually. Even
when we try to race our way through the steep hairpins of Nandi Hills,
the car requests dropping gears from fourth to third, relenting only
when the second gear is in place.
But we are pleasantly surprised
with the way the car behaves during a short off-road spin that we have
in the fields nearby. The car’s cabin feels like a secure shell, and an
unparalleled lap of comfort. With a ground clearance of 190 mm, and a
wheelbase of 2,590 mm, the Hyundai Creta makes mincemeat of all the
obstacles thrown at it.
Overall, despite a few shortcomings about
power, the car is a pleasure to drive, and is versatile to serve its
SUV purpose well. It’s also a very safe car to drive, keeping with
Hyundai’s ‘Safe-Drive Philosophy’. The Creta’s six airbags, ABS,
electronic stability control (ESC), and vehicle stability management
(VSM) reiterate its safe character and purpose. Apart from that, a
hillstart assist control (HAC) chips in while the car navigates inclined
roads and sloppy terrain. Between all this, it claims to offer a
mileage of 15.29 kmpl.
A secret up Creta’s sleeve is its huge
400-litre boot space. Another point scored by Hyundai is the Creta being
offered with a six-speed automatic transmission on its diesel variant.
With the Creta, Hyundai has once again proved why it is one of India’s
most revered carmakers. The car’s prices begin from Rs 8,69,888
(ex-showroom Bengaluru).
When we finish our drive, we are as
fresh as ever, with no stress around, thanks to the flawless interior
space and seating of the Creta, the magic of automobile creativity.
Driving a car is not a
cake walk. That too, looking at the chaotic traffic conditions in
India, first-time buyers especially will have a tough time with frequent
gear changes.
Carmakers seems to have found a
solution. In a bid to woo customers, they have come up with automated
manual transmission (AMT).
In an email interaction with Deccan Herald’s Umesh M Avvannavar, the country's largest car manufacturer Maruti Suzuki’s spokesperson explains the nuts and bolts of AMT technology.
What is AMT? How is it different from manual transmission and other automatic transmissions?
Auto
Gear Shift or automated manual transmission (AMT), is equipped with
Intelligent Shift Control Actuator, an electric-hydraulic actuator that
automatically performs clutch and shift operations.
Auto Gear
Shift combines the actuator and controller and directly mounts them in
the transmission in order to unify the working components. This permits
synchronised control over the clutch, shifting, and engine, for smoother
gear changes. It combines the advantages of both manual and automatic
transmissions.
The AMT system, in contrast to most automatic
gearboxes, does not come with a torque converter or the complex
dual-clutch set-up. In fact, it is identical to the conventional manual
gearbox. What gives it the automatic functioning is the
electro-hydraulic mechanism that helps shift gears according to the
speed at which the engine is running.
It also comes with a different
electronic control unit, which ensures optimal engine performance and
the timing of the gear shift, than the one used in a manual car.
Identifying
Auto Gear Shift The gear box is neatly labelled where ‘N’ stands for
Neutral, ‘D’ for Drive, ‘R’ denotes Reverse, and ‘M’ means Manual mode.
In manual mode, there are options of ‘+’ to upshift gears and ‘-’ which
is used to downshift gears.
Switching on: Ensure
car is in neutral. Press the brake pedal. Crank up the engine (if the
car is not in neutral and brake pedal is not pressed, the car will not
start. This is to ensure safety).
Drive Mode:
The user presses the brake pedal and puts the gear lever in D position.
The car sets in motion by virtue of creep function with the release of
brake. The speed of the car can be changed by pressing or releasing the
accelerator pedal.
In D mode, the most appropriate gear is
automatically selected by the Auto Gear Shift system, based on the
operation of the accelerator pedal and vehicle speed.
With the increase in speed, the car moves up to a higher gear, the highest being the fifth gear.
Optimum
vehicle performance and fuel economy is obtained by smoothly/lightly
pressing and releasing the accelerator pedal. Aggressive pressing of the
accelerator pedal will result in gear shifting at higher engine RPM
(revolution per minute) which may adversely impact the fuel economy.
Manual Mode:
To add to the flexibility, the Auto Gear Shift transmission also offers
a manual mode. For shifting to manual mode, one has to simply shift the
gear lever to M position.
Gear shifting is achieved by pushing
the lever to the ‘+’ and ‘-’ for upshifting and downshifting
respectively. Even while driving, the drive mode can be shuffled between
D and M modes.
Stopping the car: Pressing the
brake reduces the speed of the car. The gears shift down automatically.
When the vehicle comes to a complete halt, press the brake pedal and
shift the lever to N or neutral.
It is crucial to check position
of gear on the instrument cluster display to ensure it is in neutral.
Switch off engine and engage parking brake.
What are the advantages of AMT technology, compared with other types of transmissions?
Some of the advantages of AMT technology are:
Easy driving:
Because clutch pedal and gearshift operations by the driver are not
necessary, and thanks to the creep function at the start, Auto Gear
Shift makes driving easy even when parking, and during traffic
congestion.
Excellent fuel efficiency: As the
basic structure is manual transmission, its fuel efficiency is
equivalent to manual transmission. Also, optimal gearshift operation
controlled by the computer helps improve fuel efficiency.
Fun driving:
Manual mode can be selected to enjoy driving, enabling the driver to
shift gears at will, just like manual transmission. Delivers fun driving
from the synergistic effect with direct drive feeling of a manual
transmission.
There are a lot of doubts that customers
tend to have when adopting new ideas such as AMT. Some feel that there
will be reduction in mileage of cars? What are your thoughts on this?
So
far as fuel efficiency goes, statistics speak for themselves. The newly
launched Alto K10AGS is one of the most fuel-efficient cars in India
giving a fuel efficiency of 24.07 km/l similar to manual petrol, while
the Celerio AMT version returns a fuel efficiency of 23.1 km/l, same as
the manual petrol version.
Therefore, there is no truth behind the perception of lowering fuel efficiency.
So
far as customer adoption is concerned, any new product or technology
takes some time to establish itself in the market. Maruti Suzuki had the
first-mover advantage in this technology and customer response has been
outstanding.
Going by the numbers, it can be said that AMT
technology has found widespread appeal across geographies. Certain
pockets like NCR, Mumbai, Gujarat and South India have responded very
positively and the acceptance of AMT is much higher than average in
these regions. AMT penetration is slowly increasing in other markets as
well.
Certain discerning customers looking for ease of driving
and those who have had exposure to this technology during their stint in
international markets like the Gulf, US or UK, are more receptive.
How
many of your products have automatic transmission technology? How much
percentage of your cars sold are contributed by those with AMT?
Maruti’s
models running on AGS are — Celerio and Alto K10. Initially it was
expected that the automatic version would account for 25 per cent in
Celerio. However, it continues to clock a much higher figure of 40 per
cent.
In FY 2013-14, the company sold 2,800 units, which rose
to over 30,000 units in FY 2014-15. For sure, by virtue of exposure to
technology, the South has responded extremely well.
The
acceptability of AMT technology is high in markets like Delhi NCR,
Mumbai, Ahmedabad and all Southern markets — Bengaluru, Chennai,
Hyderabad, and Kochi. Nationally, of the total Celerios sold in FY
2014-15, 35 per cent was AGS trim.
Some of the cities have shown
above national trend such as Bengaluru (56 per cent), Kochi (53 per
cent), Hyderabad (47 per cent), and Chennai (45 per cent).
Who are the buyers or potential customers for AMT in India?
The
potential customers for AMT cars in India are usually well informed and
well-travelled with some exposure to international technology. The
Celerio’s offering of an automatic variant at a competitive price point
in the mass segment has come as a boon for many, given city driving
conditions.
Also, for those who have just started driving, the
technology is much easier to handle. Auto gear shift is also popular
among women customers. Combine with the fact that it is affordable and
does not compromise on fuel efficiency, this technology has found wide
appeal.
What is the future of AMT in India? What is the size of this segment and the growth projection?
We
see the trend growing in the near future. The technology is well suited
to Indian driving conditions and brings convenience to customers.
Previous surveys done by Maruti Suzuki had shown that 40-50 per cent of
prospective buyers were willing to pay up to Rs 40,000 more for an
automatic car.
That number dropped substantially when the
premium was increased to Rs 60,000. Also, customers didn’t want any
compromise on fuel efficiency. As Auto Gear Shift fulfils all these
expectations, there was a latent demand which MSIL has fulfilled. Other
OEMs (original equipment manufacturers) would also like to bring new
models with such technology.
Umesh M Avvannava ,August 23, 2015,Bengaluru, DHNS
Involves spot visits to tea and veg. vendors to count customer footfalls
Shriram Housing Finance (SHFL), the mortgage
lending arm of Shriram Group, aims to touch 100 cities by end of this
financial year, a top company executive told Deccan Herald recently.
“Currently,
we are present in 17 states and have 74 branches across India. By the
end of this financial year, we want to touch 100 branches pan-India. We
have a manpower of 550 and will add up to 250 in headcount,” Shriram
Housing Finance Managing Director and Chief Executive Officer Sujan
Sinha said.
SHFL received its licence from the National Housing
Bank (NHB) in August 2011 and began operations in March 2012. In April
2012, the Shriram group raised Rs 170 crore in tranches from
Mauritius-based private equity firm Valiant Partners for a premium,
totaling nearly 23 per cent stake. The first tranche of Rs 80 crore came
in 2012, and the remaining in July 2013. Public-listed Shriram City
Union Finance brought in a similar amount, subscribing to SHFL shares at
face value, and holds 76.5 per cent.
The Mumbai-based housing
finance firm’s assets under management (AUM) till date is at around Rs
950 crore. The company has achieved 130 per cent y-o-y growth. Sinha
says, “Frankly, I am very cautious about saying, let’s look at absolute
numbers. But...more or less on the organic business we are the leaders.”
On
targets, Sinha explains, “We want to go and approach under-served
segments which are in tier-II and tier-III towns. With enough funds in
hand, I will go to such markets and see what the demand is...the moment I
start setting the targets...for me the problem is targets run me,
instead of actually we going and doing something.”
He added,
“Surprisingly, 72 per cent of my borrowers are self-employed and 28 per
cent are salaried (most of them from unorganised segments). For us, it
is a completely different ball game. We are targeting different sets of
categories like tea stall owners, roadside laundrymen, and vegetable
vendors.”
Wary customer selection
On
asked how SHFL lends without collateral, Sinha explains, “That is how we
are different. For us it is a manual process. My sales team sits down
with these guys over three to five visits...they look at their customer
footfalls. Based on that, they would be able to gauge the daily cash
receipt and we decide how much to lend.”
He added, “For us, this
entire customer acquisition is little cumbersome. That is why we lend at
15 per cent (home loans) and LAP (loan against property) at 17-18 per
cent. The segment is very difficult.”
Sinha said while SHFL has
crore-sized loans in larger locations, the average loan size across the
portfolio is around Rs 11 lakh. “We don’t encourage our branches to
concentrate on large ticket sizes...because we don’t understand the
risks.”
The company gets good amount of referrals from the chit
business. Sinha said, “There are four states — Karnataka, Andhra
Pradesh, Tamil Nadu, and Maharashtra — where the chit funds business is
growing immensely. We often get referrals from the large number of chit
fund agents.”
On the demand for affordable housing, Sinha said,
“Very clearly, demand is huge, but untapped. Even today, I would say
85-90 per cent of the business which Shriram is doing is to first-time
borrowers....”
According to him, the housing industry market is led by big builders who
prefer big size tickets. “It is like the car finance market, where car
dealers dominate the business. For us, 75 per cent of our borrowers are
either self-builders or re-sellers...”
Talking about Karnataka, Sinha claimed, "This financial year, we will disburse Rs 70 crore compared with Rs 7
crore last year, a 10-fold jump. We have plans to open new branches in
Mysuru, Mangaluru, Ballari, Belgaum, and two more in Bengaluru.”
Umesh M Avvannavar, August 26, 2015, Bengaluru, DHNS
Expert explains how industry is solving the last leg problem
When you order something on an eCommerce
website, have you ever wondered about the processes and technology that
companies use to deliver the product at your doorstep?
Delivering
a single product to you might seem trivial, but this last-mile delivery
from the nearest distribution centre to your doorstep is one of the
most challenging problems faced by logistics professionals today.
Addressing
a session on ‘Transportation Strategy for Last Mile Delivery’ at the
ninth edition of SCPC (Supply Chain Practitioners’ Council) at JDA
Software, here recently, Chainalytics Senior Manager George Kochumman
said, “The challenge in solving the last-mile problem is threefold.
First, customers have an option to select a time delivery window that
suits their convenience.
“There are usually four to five time
windows in a day each with duration of three to four hours. Imagine, if
two next door neighbours select two different time windows and the
delivery person has to visit the same location twice in the same day.”
Kochumman
added, “Second, customers expect to be serviced within the same day.
This do not give companies much time to do detailed planning. It
requires real-time planning. And finally, there are thousands of
customers that have to be serviced with the available resources in terms
of vehicles and manpower.” Costs up to 30%
A
recent survey by major corporations revealed that 30 per cent of the
overall transportation costs is spent on last-mile delivery.
This
is significant when we think that the distance covered in the last mile
is significantly low. Are there any strategies that companies use to
reduce the spend and effort in the last mile?
The answer is yes
and companies are using the following strategies to control the
last-mile challenge: a.) build their own fleet of vehicles to ensure
high service levels; b.) invest a lot of money in technology, for
instance, a transport management system that enables complete visibility
over each shipment; and c.) adopt smarter strategies like multi-drop
where multiple shipments are delivered by a truck in a single trip
rather than deliver shipments individually.
Kochumman said,
“Companies which have adopted the above strategies have seen their
service levels go up, empty distance travelled come down, and vehicle
utilisation go up.”
“By adopting the above strategies, companies typically save about 5 per cent to 10 per cent of their net transportation costs.” In nutshell
In summary, last-mile delivery is a challenging problem that has to be solved in real time.
There
has been lots of developments in this area in recent times with
development of better algorithms and availability of heavy computing
power.
So the next time you receive a product at your door,
please take a moment and think about the technology and resources that
went into making it possible.
Last mile deliveryChallenges
Customers have an option to select a time delivery window that suits their convenience
Customers expect to be serviced within the same day
This do not give companies much time to do detailed planning Solutions
Build their own fleet of vehicles to ensure high service levels
Invest a lot of money in technology
Adopt smarter strategies like multi-drop
Umesh M Avvannavar and Hrithik Kiran Bagade Bengaluru: Aug 30, 2015, DHNS:
Several Indian
startups have come up in recent times in a bid to cash in on the growing
market for vehicle telematics, which is in much demand today, thanks to
auto innovations evolving on a regular basis.
According
to a report by Future Market Insight, automotive telematics combines
telecommunication and informatics to provide various services such as
navigation, safety and security dynamically to vehicles. Currently, the
global penetration of automotive telematics is 48 per cent, which is
expected to reach around 62 per cent by 2020.
The Asia Pacific
automotive telematics market is expected to reach $15,248 million by
2020, at an estimated CAGR of 11.6 per cent.
Pune-headquartered
CarIQ, which began in 2012, claims to be one of India’s first technology
platform connecting the car, owner and services, based on data
collected directly from the automobile. The company received undisclosed
seed funding in 2014 from Pose Ventures and Snow Leopard.
“CarIQ’s
solutions are a combination of hardware and software working together
to bring a connected-car experience. It starts with a smartplug — an IoT
device from CarIQ — which can be connected to any car that was
manufactured post-2009, since BS II protocol was adopted in India around
this time,” CarIQ founder and Chief Executive Officer Sagar Apte told
Deccan Herald, on the sidelines of the recent Telematics India 2015
event.
The device, which is connected into the diagnostic port
under the steering wheel, begins learning details related to car
performance, driver behaviour, and mileage, and about problems related
to engine, gear box, and transmission, among others. The findings are
presented in a lucid way via CarIQ’s mobile app to the car owner. “Car
owners can track their vehicles and understand how they drive. The
solution warns owners of potential problems in their car, and suggests
specific actions that could be taken to resolve them, real time,” Apte
said.
The device also reminds the owner of upcoming service schedules along with the work to be done and costing.
“The
product is available online for Rs 6,500, along with a GPRS data plan
and a year’s warranty. Designed, developed and manufactured in Pune, it
has over 500 users today,” he claimed, adding that the company uses
Microsoft Azure as its cloud partner.
Meanwhile, another firm,
Mudra Electronics Security Devices’ Road Point brand imports GPS
tracking systems and distributes them in India. The company, which has
370 dealer distributors, sources GPS trackers from China.
“We
have 12 kinds of products including vehicle, personal and assets
tracking systems. The vehicle tracking systems help control
air-conditioning, immobilisation, and listen-in options (you can hear
what is happening inside the vehicle),” Road Point Managing Director
Rajen Chaddha said.
The products are priced between Rs 3,500 and
Rs 8,500, and the target customers are transporters, fleet operators,
taxi owners and government vehicles.
The company is now planning
to introduce its own product — a GPS tracking system with two night
vision cameras with 3G compatibility for live video streaming — and aims
to sell 1,000 units every month, initially.
“We are investing $150 in each unit that will be made in China, basically towards conceptualising the whole idea,” Chaddha added.
Umesh M Avvannavar, BENGALURU, September 1, 2015, DHNS
Kurlon Enterprises, the country’s leading
mattress and furniture company, plans to open close to 50 Kurlon ‘Home
Komforts’ stores in the next two years, a top executive said.
Talking
to Deccan Herald, Kurlon Enterprise Executive VP Ravi Sahgal said,
“Kurlon Enterprise is an organisation with a legacy of more than 50
years. We have been pioneers in the area of mattresses and bedding
accessories like pillow, cushions, and mattress protectors. We are now
getting into living room and bedroom furniture like wardrobe, beds, and
sofas. We have a whole range of sofas, starting from mid range to
extremely high luxurious Italian designs called the Cesare collection.
The sofa cost ranges from Rs 40,000 to Rs 1,75,000. We have opened our
first flagship store Home Komforts in Jayanagar, Bengaluru, which will
showcase the luxury and lifestyle range of products for bedroom and
living room. We are looking at close to 50 Kurlon Home Komfort stores in
the next two years.”
On investments, Sahgal said, “The
investment into our furniture factory will be close to Rs 100 crore. We
are also associated with Italian designers and Italian sofa
manufacturers who have helped us with the designs. We are targeting
revenues of Rs 25 lakh per month from each of our Home Komfort stores.”
Sahgal
claimed, “We have one Kurlon product sold less than every 30 seconds.
Our plans include opening more than 500 franchisee stores all over India
in the next two years. We already have a presence of more than 10,000
Kurlon dealers and 73 offices across the country. We are looking at
setting up close to 50 Kurlon Home Komfort stores in the coming years.”
When
asked about eCommerce plans, “We also have an eCommerce strategy
wherein we have tie-ups with Flipkart, Snapdeal, Urban Ladder, Pepperfry, etc. We are in talks
with many more players. We are currently taking our baby steps, as in
our category home delivery is a huge challenge as far as logistics are
concerned. We are also reviewing selling through our website,” he said.
*
Kurlon Enterprise Head of Marketing Vishal Aneja said that the company’s
vision is to ensure that every consumer stands, sits, and sleeps on
Kurlon only.
Umesh M Avvannavar,September 5, 2015, Bengaluru, DHNS
Broad-based financial services company
Edelweiss Financial Services is planning to double its network size in
the next two years, its top executive said on Friday.
Talking
to Deccan Herald, Edelweiss Group Chairman and CEO Rashesh Shah said,
“In 2011-12, we decided that on a long-term basis the retail financial
services part is the one that we really want to conquer. We have
reasonably good market share in wholesale.”
Shah explained, “Over
the last five years, we have grown to six lakh customers in retail. We
have about 200 branches across India over broking, housing, insurance
businesses and we will double this in the next two years. We are
focusing a lot on housing finance, where we are growing at 30-35 per
cent. And our insurance business is growing more than 50 per cent which
is significant because that market is not growing. But in that we are
still a small player, being the newest life insurance company which
began operations just three years ago.”
On manpower, Shah said,
“Currently, Edelweiss Group has about 6,000 people, out of which around
4,000 are in the retail business. When we double our branches, the
headcount will grow at about 75 per cent. We will add 3,000 people on
the retail side. Last year we grew 50 per cent and we are aiming at the
same rate. The company has 11,000 agents across India.”
Tokio infusion soon
The
company has an asset base of Rs 27,000 crore with Rs 3,912 crore in
revenues for FY 2015. On market share, Shah said, “In the non-LIC
market, we have close to one per cent share. But two-thirds of the
players (in the non-LIC market) are bank-promoted insurance companies
which sell through their own branches. Our real market is the non-bank
promoted, non-LIC market where we have closed to 2.5 per cent market
share.”
Recently, Edelweiss got FIPB nod to raise insurance joint venture partner Tokio’s stake to 49 per cent.
Shah
said, “We will do it in the next three months, because we still have to
go through the IRDA approval process. Maybe they will invest Rs 500
crore, for 23 per cent stake. At the end of it we will have cash of Rs
1,000 crore. We have already Rs 500 crore cash and with Tokio’s stake
increase, there will be another capital infusion of Rs 540 crore. Till
now the total investment in this entire venture is close to Rs 1,350
crore.”
116. Diesel segment entry powers Honda Cars India take-off
Umesh M Avvannavar NEW DELHI: Sep 15, 2015, DHNS:
Honda Cars India
Senior Vice President (Sales & Marketing) Jnaneswar Sen has said
that the company has been the fastest growing in the Indian market for
the past two years, growing respectively at 83 per cent and 41 per cent.
This growth has led to a remarkable improvement in the company’s market share from eighth in FY13 to fourth in FY15, he said.
Sen
attributed the growth to the company’s twin strategy of entry into the
diesel market and launch of models in new segments like entry-level
sedan (Amaze) and multi-purpose vehicle (Mobilio).
Sen said, “We
entered the diesel segment in 2013 with Amaze. Subsequently, with the
adoption of diesel engine in all new products, including City and
Mobilio, we have gained momentum in the last two years.”
The
advanced i-DTEC Diesel engine technology has been well accepted by
customers, and last year the diesel variant’s contribution to HCIL’s
overall sales was almost 50 per cent, he said. “City, Amaze and our MPV
(multi-purpose vehicle) offering Mobilio has been the volume churners
behind our highest ever domestic sales of 1.89 lakh,” Sen added.
“Before
2013, we were present only in the petrol segment and operated in only
12 per cent of the Indian passenger car industry. We expanded this to 51
per cent with the introduction of diesel technology and by entering
into new segments like entry-level sedan and MPV. We have achieved cost
competitiveness through high level of localisation and focus on local
research and development (R&D). We will expand this field further by
launching the all-new Jazz in both petrol and diesel variants and
explore entry into new segments,” he said.
Annual target of 300,000
“We
have set ourselves an annual sales target of 300,000 units by March
2017. In line with our sales plan, we are also investing to expand our
production capacity to take it to 300,000 by mid next year,” he said.
Talking about the newly launched Jazz, which is sold in more than 75
countries and produced in 11 countries across the world, including
India, Sen claimed, “We have sold more than 5.5 million Jazz globally
and over 14,000 Jazz in India since its launch in July.”
According
to Sen, the Indian automobile industry has grown four times in the last
15 years to become the sixth largest market globally after China,
United States, Japan, Brazil, and Germany. HCIL has two plants at
Greater Noida (Uttar Pradesh) and Tapukara (Rajasthan) with a total
production of 2.4 lakh per annum. The company has invested more than Rs
7,200 crore at its Indian operations and employs over 10,000.
Hrithik Kiran Bagade and Umesh M Avvannavar Sep 16, 2015, DHNS
The Ford Motor Company
introduced the world to the pioneering Model T in 1908. More than a
hundred years hence, the global automobile giant is wooing Indians who
have a lot to Aspire for.
Yes! As the name says it, Ford
launched its latest offering, a peppy little ‘Figo Aspire’, which aims
to lead the way in the sub-four-metre sedan category, owing to the many
state-of-the-art gizmos it packs on board.
Though a late entrant
to the sub-four-metre sedan market, dominated by the likes of Maruti
Suzuki Swift Dzire, Honda Amaze, Hyundai Xcent, and Tata Zest, Ford is
attempting to etch its name well enough in the hearts and minds of
Indian buyers.
India was smitten by Ford’s beloved SUV, the
EcoSport, when it was launched a couple of years ago. Now, the American
giant is stepping into new territory.
Handsome, in and out
The
compactly built sub-four-metre Ford Figo Aspire (at an overall length
of 3,995 mm) indeed gets your eyes rolling. It’s a wonderful design and
takes in many premium visual elements from several high-end competitors.
Its bold and dynamic exterior reflects a sense of precision,
efficiency, and sophistication.
The elongated wing-shaped
headlamps, flanking the bold trapezoidal grille, call out to its
aerodynamically stylish exterior appeal. The car’s body linings
seamlessly stretch all the way to the rear where they meet the
exquisitely embellished wide tail lamps, giving the Figo Aspire a
substantial, yet sporty presence on the road.
The
car is robustly made, with a compact and concise feel. The fresh breath
that the Ford Figo Aspire spreads into the compact sedan space,
especially in terms of its handsome exterior appearance, earns for it a
fair amount of points against the competition.
The car’s beauty
spreads to the interiors as well. The car gets very premium on the
inside. The luxurious craftsmanship of the new Ford Figo Aspire,
flavoured with carefully selected colours and themes, are another
feather in the cap for the young car.
The top-end TITANIUM
variant that we have in front of us has first-in-class leather seats.
The occupants of the Figo Aspire are in for a big surprise, when they
open the door of the car and step inside. The space within the new Ford
is immense, both in the front and the back seats, even for one who is
tall. The overall width of the car is 1,695 mm, and this allows quite a
bit of room for three people to comfortably seat themselves in the rear.
The
car also sports many intelligent storage spaces (including the
359-litre boot). With specialised compartments in the doors, and the
long floor console, the Figo Aspire makes space for everything.
The
dash is well-built and neat. Though quite alike the design on the
EcoSport and the Fiesta, the grey and beige Ford Figo Aspire dashboard
adds some fresh perspective with a few add-on features. The knobs and
switches have been crafted well, but are surrounded by a wide expanse of
faded plastic grey. The clarity of the screen in the centre is
impressive, while even the display of the dials within the instrument
cluster is clear.
The car packs in many new state-of-the-art
features. For the first time, it brings in ‘MyFord Dock’, which allows
you to store, mount, and charge your mobile phone, MP3 players, or
satellite navigation systems. You can also integrate them into the car’s
entertainment system. The SYNC with AppLink is a voice-activated
SYNC system, which allows calls and messages between people in the car
with others outside.
It allows you to listen to music, and
assistance to automatically call emergency services in times of need and
give your GPS location. The Ford MyKey allows drivers to set speed
warnings, activate a seat belt reminder, and limit the car’s top speed
as well as the audio volume.
The car cabin is kept cool thanks to
the AC with automatic climate control, with vents only in the front,
though a rear vent would have been marvellous. The infotainment system
offers USB, Aux-in, and Bluetooth connectivity.
The Ford Figo
Aspire is a versatile car and can be driven effortlessly on smooth
roads, and even not so smooth ones. Our plan is to take the car a little
out of Bengaluru, into the countryside. A jaunt outside the city takes
one to the little-known Thimmarayaswamy Betta, a hillock adorned by a
temple dedicated to Lord Narasimha. Getting there is no hassle, through
green meadows and farms, but the road up to the destination is ridden
with puddles and other blemishes, rendering us an opportunity to test
the city car to the limit.
The Ford 1.5 Figo Aspire
TITANIUM diesel variant waits for you to hit the throttle. The initial
pick-up is awesome. With just a push on the accelerator, the car can
cruise at higher speeds with no noise inside the cabin. At first gear,
the car picks up quickly and easily reaches a speed of 60 kmph. Right
from get-go, the drive proves to be smooth, and even within gear shifts,
the speed changes happen seamlessly. A few instances of traffic on the
road don’t pose much of a challenge for this car, which finds its own
way through the chaos.
Especially on the Hyderabad highway, the
wide six-lane stretch of asphalt is the ultimate arena for the car to
sport and revel in.
With our hands on the 1.5L-TDCi (turbo
diesel common rail injection) engine, we are powering our way ahead. The
1.5L-TDCi engine is engineered for both economy and performance. The
1,498 cc powertrain produces a maximum power of 100 PS @ 3,750 rpm and
churns out a maximum torque of 215 Nm @ 1,750-3,000 rpm, while being
mated to a five-speed manual transmission.
Alternating steering feel
We
find a bit of lag sometimes when in the first and second gears, though;
but the initial doubts vanish when the car overwhelms us with its drive
consistency. We have to mention about the Figo Aspire’s electronic
power assisted steering (EPAS) with Pull Drift Compensation Technology
that helps in light steering effort at low speeds — for parking and
in-city manoeuvring — and heavier, more precise feel at high speeds for
greater stability and confidence on highways. At its highest speed, we
manage to race the needle to over 150 kmph, even as the car cries for a
sixth gear. The company claims a fuel economy of 25.83 kmpl. We drive
through the uneven road onward to the temple. The 14-inch tyres pose a
little discomfort to the driver to crunch through the rough surfaces
easily, but the reasonably high ground clearance of 174 mm and turning
radius of 4.9 metres ensures that the under-belly of the car is kept
safe. Meanwhile, while climbing hilly hairpins and inclines, the car
coughs a little, urging you to jump to the first gear. We reach our
destination, and the car still seems as inviting as ever, wanting to
pamper us with pure comfort.
The Ford Figo Aspire 1.5-litre
variants are priced in the Rs 6.01 lakh to Rs 8.40 lakh (ex-showroom
Bengaluru) range. The car is also available in two petrol engines
(1.2-litre (88PS, 112Nm), and 1.5-litre (112PS) Ti-VCT (twin independent
variable camshaft timing).
For those looking for the sophisticated
refinement of an automatic transmission, the Figo Aspire will come with a
six-speed PowerShift automatic transmission paired with a 1.5L-TiVCT
petrol engine, offering a peak power of 112 PS and a fuel economy of
17.2 km/l.
The Ford Figo Aspire has a fight on its hands to make a
mark in the hard-fought compact sedan space. But for a young, chic city
car, the Figo Aspire is just as its name suggests — all and more that
one could ‘aspire’ for, in a car.
***************************
118. At Tapukara, a new Honda car rolls out every 2 min
Umesh M Avvannavar, BENGALURU: September 16, 2015, dhns:
I have always been fascinated by the sight of
new cars plying on the roads. But I had never imagined I would get a
joyful opportunity to see them manufactured in an assembly line. A
recent visit to premium car manufacturer Honda Cars India’s (HCIL)
Tapukara (Rajasthan) plant will thus remain forever etched in my memory.
Honda,
founded in Japan in 1948 by Soichiro Honda and Takeo Fujisawa, has
global presence in six regions with 137 plants spanning 41 countries. It
is the largest manufacturer of internal combustion engines in the world
and the eighth biggest automobile company globally.
Since 1995,
HCIL has set up two manufacturing plants in India at Greater Noida
(Uttar Pradesh) and Tapukara (Rajasthan) with a total production
capacity of 2.4 lakh per year. The company has invested more than Rs
7,200 crore at its two plants and employs over 10,000. The corporate
office is located in Greater Noida and there are three zonal offices —
primarily for sales and aftersales — in Mumbai, Chennai, and Kolkata.
First car plant in Rajasthan
We
started our journey to Tapukara plant early morning. The 2.5-hour-long
journey from Delhi was pleasant. I woke up to witness blue Mobilios
lined up, along with a fleet of Honda’s best-selling model City.
To
meet the potential and existing demand, Honda has come up with a second
manufacturing facility at Tapukara (District Alwar, Rajasthan) spread
over 450 acres.
Incidentally, it is the first car manufacturing plant in Rajasthan.
The
plant in Greater Noida was established in 1996 and is spread over 150
acres. Initial capacity was just 15,000 units and over the years it has
increased to 1.2 lakh units per annum. The products manufactured at
Greater Noida are the Brio, Amaze, CR-V, and Mobilio. “Tapakura is a
modern and state-of-the-art manufacturing facility incorporating the
best practices of Honda’s plants globally. While the first phase of
operations started in 2008 with manufacturing of critical components for
car body parts and engine, full-fledged car assembly operations began
in February 2014. This plant is one of its kind with fully backward
integrated operations,” said Rajiv Wasan, Senior Vice President
(Manufacturing) at the Tapukara plant. The products manufactured here
are the City, Amaze, and Jazz.
As part of global sourcing, HCIL
exports many critical components across various Honda plants globally.
China is one of the export destinations.
HCIL’s Tapukara plant
has a production capacity of 1.2 lakh units per annum. The plant has the
flexibility to manufacture multiple models which help it to adapt
quickly to any sales opportunities. In line with the capacity, the
facility can produce 1.2 lakh engines annually.
The capacity of
the Tapukara plant will be increased to 1.8 lakh/annum by the middle of
next year. The Rajasthan facility employs around 5,500. The plant has
deployed 100 robots in various functions like assembly frame, weld shop,
paint shop, forging, etc.
First, the White Body
Takt
Time, derived from the German word Taktzeit, is the average unit
production time needed to meet customer demand. In automobile
manufacturing, cars are assembled on a line at a certain cycle time,
ideally being moved on to the next station within the Takt Time.
At
the HCIL’s Tapukara plant, the Takt Time is two minutes. It means that a
fully manufactured and tested car rolls out of the assembly line every
two minutes.
The Tapukara production facility is a completely
backward integrated car manufacturing operations including all functions
of forging, aluminium machining, spin casting, mission assembly,
powertrain shop, press shop, weld shop, paint shop, plastic moulding,
engine assembly, frame assembly, and engine testing facility. The
facility has two plants.
A. Engine and Transmission Plant:
Involved in Forging, Powertrain, Aluminium Machining, Spin Casting
Machine, and Mission Assembly activities.
B. Car Assembly Plant:
Involved in Press Shop, Weld Shop, Paint Shop, Injection Moulding and
Painting, Assembly Frame, and Vehicle Quality Check activities.
The
first visit was to Forging, where we could see dancing robots. Forging
is a manufacturing process involving the shaping of metal using
localised compressive forces.
Next we stepped into the aluminium
department, where one could see lined up huge cylinder blocks weighing
14.2 kg meant for casting, airfilter assembly, die-casting machines, and
machining lines.
At the press shop, sheet blanks are converted
into body panels and these panels are subsequently welded/assembled in
the Weld Shop.
The finished body from the Weld Shop is called
White Body which is painted at the Paint Shop and further parts are
assembled in the Assembly Frame Shop.
Welder robots are a draw
The
excitement begins once you enter the welding zone. You can actually see
car skulls lined up. You will be amused to see the robots doing spot
welding, metal handling, etc. The Weld Shop has some advanced equipment
for speedy operations.
It has basic skill training facility,
where workers are trained for manual welding, bolt tightening, welding
gun, tip removal, and similar basic activities of the weld shop.
We had to skip the Paint Shop as it required proper dress code.
We
spent a lot of time at the Final Assembly as it needs a lot of time to
understand the process. One can see a beeline of cars getting ready,
with tyres being fixed, engines being placed, doors being bolted on, and
fluids being filled. It was a revelation to learn that around
1,500-2,000 auto component parts have to be fitted on every car. There
is a VQL (vehicle quality line) for inspection. Till date the company
has made investments of Rs 4,396 crore (as on March 31, 2015) at the
Tapukara plant. Another Rs 2,842 crore (as on March 31, 2015) has been
invested at Greater Noida for a cumulative Rs 7,238 crore (as on March
31, 2015).
Plans are on to invest Rs 380 crore more at Tapukara to ramp up its production capacity to 1.8 lakh cars per annum.
************************************************
119. Steel industry players square off over safeguard duty
The 20 per cent provisional safeguard duty imposed
on hot rolled coil imports following a complaint by steel majors is
being bitterly opposed by smaller players. Deccan Herald takes a closer
look
Contrarian voices are
being heard from the domestic steel industry after the Central
government recently imposed 20 per cent provisional safeguard duty on
specific steel products following a recommendation by the Director-
General of Safeguards. The steel imports attracting this duty are “hot
rolled flat products of non-alloy and other alloy steel in coils of a
width of 600 mm or more”. By law, provisional safeguards are valid for a
period of 200 days.
Integrated Steel Producers (ISPs)
are among the most vocal supporters of the move. Tata Steel (India &
South East Asia) Managing Director TV Narendran told Deccan Herald,
“The government has recognised the issues being faced by the domestic
steel industry arising out of dumping of steel from countries having
surplus steel capacities. The safeguard duty should help in curbing
predatory pricing and surging imports which has seen an increase of
about 60 per cent over the corresponding period last year.”
India
is the ideal location for the steel Industry to grow as it has the
required raw material and a consuming market, Narendran said, adding the
Indian steel industry has been among the largest investors in
manufacturing in the last ten years, spending money on expanding
capacities and bringing state-of-the art technologies.
JSW Steel
Director (Commercial and Marketing) Jayant Acharya said, “The 20 per
cent safeguard duty is a welcome step against the dumping of cheaper
imports into India, especially from China, Japan, Korea, and Russia.
This will help in controlling the surplus capacity and stabilising the
domestic demand-supply balance. It will also help the domestic players
to boost our Prime Minister Narendra Modi’s ‘Make in India’ campaign.”
Indian
Steel Association (ISA) Secretary-General Sanak Mishra also welcomed
the move. “This move signifies that the Government of India appreciates
the criticality of the situation faced by the steel industry on account
of cheap imports. We would expect more such positive steps in the future
as well, to put the industry on a more sustainable footing.”
In
contrast, smaller players involved in cold rolling and annealing of hot
rolled coils (HRC) are aghast at the move. The Federation of
Associations of Maharashtra (FAM) President Mohan Gurnani said,
“Imposition of safeguard duty of 20 per cent on hot rolled flat products
is an extremely retrograde step by the government. Only recently India
increased basic customs duty twice by 2.5 per cent each making the
effective rate 12.5 per cent (from 7.5 per cent). And now this 20 per
cent safeguard duty takes the total effective duty to 52 per cent,
considering the 12.5 per cent countervailing duty (CVD), and the
cascading effect of duty on duty.”
“It is preposterous that
majors are spending time and energy to destroy the small and medium
businesses by instigating such a move, instead of focusing on new areas
of business or optimising their resources,” said Vinod Bane,
spokesperson for the BIS action committee formed by FAM and BIMA (Bombay
Iron Merchants’ Association) in a release.
Then there are other
players for whom the move cuts both ways. Talking to Deccan Herald,
Uttam Galva Steels Director Ankit Miglani said, “For us, it is a
neutral. For Uttam Value Steels, it is a positive. On the other hand for
Uttam Galva Steels, it is negative. For the latter, hot rolled coil is a
raw material. For Uttam Value Steel, it is a finished product. The duty
is only on hot rolled coil. So for Uttam Galva Steels, hot rolled coil
is a raw material. So my raw material will become more expensive and
there is no protection on the finished product.”
Import surge in numbers
Steel
companies had told Director-General of Safeguards Vinay Chhabra that
while steel imports made up five per cent of the country’s total
production in FY2014, they have since then increased and are on course
to hit 13 per cent this fiscal year (FY16). Steel imports jumped 72 per
cent in the last fiscal year to 9.3 million tonnes. Last month, the
government had hiked import duty on base metals, including iron and
steel, by 2.5 per cent in a move aimed at helping domestic players
battling cheap Chinese imports after the currency devaluation by China.
Earlier in June, India imposed anti-dumping duty of up to $316 per tonne
on imports of certain steel products from three countries, including
China, to protect domestic producers from below-cost, inbound shipments.
It
was in July that the Steel Authority of India (SAIl), JSW Steel, and
Essar Steel filed an application before the Director-General of
Safeguards seeking safeguard measures for a four-year period. Steel
companies pushed for the safeguard duty because it would apply to all
countries. Import duty, for instance, would not apply to countries like
Japan and South Korea with which India has free trade agreements (FTAs).
Steel imports last year from South Korea and Japan, which pay duties of
less than 1 per cent due to the FTAs, were an estimated 3.5 million
tonnes.
Will the duty push up prices?
Smaller
players feel that the safeguard duty plays into the hands of integrated
players since it would allow them to push up prices. FAM’s Gurnani
said, “As a result of the safeguard duty, domestic prices will increase
by minimum 15 per cent. Moreover, products made from hot rolled coils
would start getting imported. This clearly shows government wants to
bail out steel majors at any cost even at the expense of millions of
small steel users.”
When asked about the impact of steel prices,
Uttam Galva’s Miglani said, “An increase of Rs 2,000 is on cards over
the next two months. The duty has been imposed only last Monday, it will
take time to impact on sales. In domestic sales, the biggest challenge
is liquidity. There is a shortage of working capital across the entire
value chain which is putting a lot of pressure on demand.”
JSW’s
Jayant Acharya added, “The move will bring about a balance in the
demand-supply scenario but I don’t see it pushing prices higher in the
near term. What can immediately happen is stability in the demand-supply
situation. Prices will move up gradually, but it is difficult to give a
timeline for it.” Asked about the possibility of a price rise, ISA’s
Sanak Mishra said, “It is expected that the downward slide in domestic
prices of hot rolled coils will be mitigated to some extent, and market
may see more stable prices.”
Meanwhile, analysts said the hike in
safeguard duty will benefit the steel sector. Bank of America- Merrill
Lynch (BoFA-ML) said, “While safeguard duty should benefit the steel
industry, the banking system will be a much bigger beneficiary.” India
Ratings and Research (Ind-Ra) said the safeguard duty will be a welcome
relief for the steel sector, which is struggling due to cheap imports
from China and countries with which India has FTAs.
“That said,
the higher safeguard duty would benefit the ISPs, but negatively impact
the companies involved in cold rolling and annealing of HR coils.
However, the players could circumvent this by importing HRC with some
value addition,” it added.
What is safeguard duty?
Through
an amendment to the Customs Tariff Act, 1975 (Section 8B), the Central
Government is empowered to impose safeguard duty on goods which enter in
increased quantities and cause or threaten to cause serious injury to
domestic industry producing like or directly competitive goods.
Is the safeguard duty WTO-compatible?
In
fact, the roots of this trade remedy lie in Article XIX of GATT, 1994
(and its pre-WTO version). This provision allows a WTO member to
restrict temporarily imports of a product (known as ‘safeguards’ action)
if its domestic industry is affected by a surge in imports.
Why are countries with FTAs not spared from safeguard duty?
Again,
it is due to the WTO principle of non-discrimination embodied in the
Agreement on Safeguards. It provides that, in most cases, safeguard
measures must be applied on a non-selective (most favoured nation or
‘MFN’) basis.
BENGALURU, Oct 09, 2015,
DHNS: DSP BlackRock Investment Managers, a leading asset management
company in India, aims to bring ETFs (exchange traded funds) and
Scientific Active Business to India, a top company executive said on Thursday. Talking
to Deccan Herald, DSP BlackRock Investment Managers Executive Vice
President (Head, Equities and Corporate Strategy) Anup Maheshwari said,
“We are always looking at opportunities like ETF which is a very large
business for BlackRock globally. We have evaluated for the last couple
of years. We have still not found it to be the rightful ecosystem to
launch. It is something on our radar. Certainly we want to do ETFs.” He
added, “Scientific Active Business, which is quant-based investing, is a
big business for BlackRock globally. It is not there in India today. That is something we will explore at some point in future.” Without
giving a time-frame, Maheshwari said, “There are all in conceptual
stages and nothing concrete has been decided. We want to do certain
business, but we need to bring in the right people. These are all part
of future plans.”
The company launched the alternative investment fund (AIF) in May 2014. DSP BlackRock has assets under management (AUMs) of Rs 37,000 crore compared with the total AUM of Rs 13 lakh crore for the entire mutual fund industry. Maheshwari
explains, “These are large businesses globally and there is no reason
why they won't be large in India at some point as investors are getting
sophisticated. In India, we did not have institutional investors in
equity, since in the past pension funds were not allowed to invest.
People didn’t do much in equities at an institutional level. Now that
they have started investing in equities and the government is
encouraging them to invest in equity, these products will start
developing.” When asked about how only 2–3 per cent of Indians invest
in equities, Maheswari said: “Despite the fact that in the long run,
stocks have given better returns, investors don’t experience them. They
come in only after markets have done well, and exit when markets have
done badly.” He cited the example of US 401k pension plan. In the
early ’80s, the US opened the equity market and encouraged people to buy
equities as part of their pension plan and it became part of their
culture of savings, he said.
In
the backdrop of pharmacy strike on October 14 to protest against sale
of medicines online, the country’s leading pharmacy retail chain MedPlus
Health Services Pvt Ltd Chief Operating Officer Dr Surendra Mantena
feels that some form of online presence for pharma is inevitable. He
spoke with Umesh M Avvannavar of Deccan Herald. Excerpts:
Your thoughts on online sales of medicine in India?
As
consumer behaviour in India and across the world shifts to online and
mobile centric consumption pattern, pharmacy cannot be insulated from
this wave of change. If consumers perceive this as a more convenient and
more value-providing format, then there will be pressure on pharmacy
retailers to cater to this demand. Whether the existing pharma players
do it or some new players step in, some form of online presence for
pharma is inevitable.
Are you planning to venture into online sales?
MedPlus
is taking the lead to be an omni-channel retailer for medicines. Online
or mobile is just another gateway for our customers to interact with
us. Today, customers can place order requests through our online portal
MedPlusMart.com or through our app and then go pick up the medicines
from our store after showing the prescription to our pharmacist. The
advantages are that they will be able to select from a much wider range
of medicines in our warehouse virtually guaranteeing 100 per cent
availability, spend less time in the store because the order will be
packed and ready by the time they go, and save more as higher discounts
are offered for online order requests.
What about the law?
Indian law neither permits or nor denies online sales specifically because the concept itself is so new.
What are the challenges faced by pharmacy stores in India?
The
pharma market is highly fragmented and a lot of local and regional
preferences in prescribing add to the complexity of it. Pharmacy stores
can only stock a limited number of products due to cost and space
limitations and hence the biggest challenge is to make the right
medicines available to the customers in the right place at the right
time. Since the margin structure is fixed, and the DPCO rule has added
further pressure on the margins, the second challenge is maintaining
profitability of stores. Since the regulatory requirements for pharmacy
have changed little from the 1940s, there are rules that are irrelevant
to the current practice of pharmacy and hence, a burden for the pharmacy
stores to comply with.
What is the pharma industry’s expectations from the government?
Cannot
speak for the pharma industry in general, but for retailers a good
first step would be for the government to simplify the licencing
structure and rules and regulations governing the operations of pharmacy
stores while retaining the important elements that protect the patients
from harm. The government should also proactively look at providing
clear guidelines and rules for online sale of medicines as early as
possible in order to provide clarity for all stakeholders and plan for
their future.
What do you expect from the government now?
We
feel that with proper guidelines and regulations in place for consumer
protection, online pharmacies can add huge convenience and provide more
savings to the end consumers. They can be regulated as well as if not
better than physical pharmacies. Regardless of whether it is online or
offline, patients will gravitate to the companies and brands that they
can trust and the ones that provide them the highest value.
Toshiba Mitsubishi
Electric Industrial Systems Corporation (TMEiC) India, a subsidiary of
TMEiC of Tokyo, has invested Rs 250 crore in its new industrial motor
manufacturing facility at Vasanth Narasapur phase-2, a top executive
said on Monday.
Talking to Deccan Herald, TMEiC India
Managing Director Hemant Joshi said, “The company has invested Rs 250
crore in the new greenfield industrial motor factory that is being
constructed across 21 acres at KIADB Industrial Area in Vasanth
Narasapur phase-2, Tumakuru district.
It is in advanced stages
of completion and will start commercial operations by March 2016.” The
company aims to hire around 150 people, with a mixed background of
technicians (with ITI education) and engineers from the electrical and
mechanical streams.
The industrial motor facility will
manufacture large rated industrial motors for varied industrial
applications in oil and gas, power generation, metals, cement, water and
wastewater, chemicals and fertilisers, etc.
The company has the
capacity to produce 150 motor units per month. TMEiC India is looking to
cater to the demands of domestic and export markets. “We are looking at
South-east Asia and Middle-East as of now,” Joshi said.
Meanwhile,
TMEiC has announced the completion of the integration of the power
electronics factory acquired from AEG last year. TMEiC also inaugurated
its corporate office in Bengaluru on Monday.
Support to ‘Make in India’ TMEiC
President and CEO Kiyotaka Machida said, “In line with the ‘Make in
India’ programme, TMEiC Japan has invested in India to manufacture its
products, specifically in Karnataka, to cater to the Indian requirement
as well to support the global business of TMEiC.”
Joshi adds,
“TMEiC achieved the global top share of high voltage (grid connected) PV
inverters last year and the factory in Bengaluru is playing a very
important role for TMEiC.” The plant will have monthly production
capacity of 30 to 40 mW solar inverters, and 10 to 15 power electronics
(high voltage) drives.
TMEiC was formed in 2003 from the merger of the
industrial systems departments of Toshiba Corporation and Mitsubishi
Electric Corporation. It had revenues of 187,472 million yen in 2013,
which is approximately $1.57 billion at today’s rates. The Indian
subsidiary of TMEiC started its operations from October 2010.
*******************
Will double roasting business, says Coffee Day's Siddhartha
BENGALURU: Oct 13, 2015, DHNS
Cashing in on the
burgeoning coffee lovers in India, Coffee Day Enterprises, the parent
company of the Coffee Day Group, is planning to double the capacity of
coffee roasting business in Chikkamagaluru, a top executive said on
Monday.
Talking to Deccan Herald, Cafe Coffee Day
Chairman V G Siddhartha said, “We manufacture around 6,000 machines
every year in Bengaluru. We have tied up with 180-year old German firm
WMF last month. We will manufacture jointly in Chikkamagaluru and supply
to Asia and South-east Asia.”
Siddhartha added, “As of now, we
have a manufacturing base in Bengaluru, which we will be shifting to
Chikkamagaluru. More than machinery for me, along with that I can supply
my coffee, tea, cups, etc., even as I keep the maintenance contract of
the machine. Majority consumers will be corporates. With the WMF tie-up,
we can hit the five-star hotels too.”
He added, “We are doubling
the capacity of our coffee roasting business in Chikkamagaluru. We are
investing Rs 42 crore in expansion of the roasting facility. Next to
that facility this will come. It is part of the roasting expansion
plans. In the next eight to twelve months, it should happen.”
When
asked about sourcing, Siddhartha said, “On an average, we source around
23,000 to 25,000 tonnes. We are purposely not increasing because we
take good coffee for our own use, and export the remaining. We want
7,000 to 8,000 tonnes for internal consumption. In the next five to
seven years our consumption will be 15,000 tonnes. We control 23,000 to
25,000 tonnes of the commodity for future consumption. So the next five
to seven years should not be a problem for us. We have good network of
sourcing. We operate with our 30 agents, around 250 km of growing area.
We are very comfortable in sourcing.”
Coffee Day is proposing to
open on October 14, 2015, a public issue of equity shares of face value
of Rs 10 each for cash, including a share premium, aggregating up to Rs
1,150 crore. The price band has been fixed between Rs 316 to Rs 328 per
equity share.
“We have plans to put 135 CCD outlets in the next
two years. It requires around Rs 37 lakh to Rs 40 lakh. It will be Co-Co
models (company owned and company operated). The biggest market for us
is Delhi-NCR region with 240 stores,” Siddhartha said.
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How smart are we being while looking at setting up smart
cities in a cultural context even as we face the ever-widening gap
between governance and delivery? How will they fit into uniquely Indian
requirements, our fragmented cultural ethos?
Leading foot-wear, apparel and outdoor adventure gear brand
Woodland is betting big on China, one of the rapidly growing retail
markets in the world, by opening 25 new stores in that country in the
next 2-3 years. 
The gap between power production and consumption is widening
in India and is set to further widen with the government’s thrust on
manufacturing. Since power outage has become the order of the day,
industrial consumers are left with no other option but to use diesel
gensets. Banking on this space, Satara-based Cooper Corporation Private
Ltd, a company which manufactures different types of gensets and
engines, aims to leapfrog its Rs 600 crore turnover to Rs 1,000 crore by
2015. In an interaction with Deccan Herald’s N V Vijayakumar and Umesh M
Avvannavar, Cooper Corp Chairman and Managing Director Farrokh N Cooper
shares the importance of technology in the manufacturing sector. 
Umesh M Avvannavar, Sep 9, 2014, DHNS
It plans to launch the hatchback Bolt by the end of the year 
Leveraging the edible oil market buoyancy in the country,
Hyderabad-based refined oil-seller Saraiwwalaa Agrr Refineries Ltd
(SARL) is exploring new opportunities in high growth categories in the
edible oil segment like rice bran and mustard oil as well as the branded
food segment by launching atta, rice and foodgrain.
Who
says luxury comes with a hefty price tag? At least, that’s not
something that the country’s largest carmaker, Maruti Suzuki India
(MSI), must have thought when they delivered the Ciaz, a perfect blend
of comfort, features, space and performance, and many more attributes.
Talking
to Deccan Herald at the international aluminium die-casting conference,
Alucast 2014, here on Thursday, Force Motors Managing Director Prasan A
Firodia said, “Today, in India, firefighting is a challenge, due to the
kind of roads and traffic conditions that prevail here. Usually, fire
vehicles are large, while city roads are small, making it difficult for
fire teams to navigate and reach destinations sooner.”
The
automobile firmament is still grappling to find the right balance
between utility, power, mileage and sheer beauty which the customer
craves. ‘Green cars’ come and go with the panache of a magician
conjuring up one trick after another, but auto companies are not running
out of steam yet.
Talking
to Deccan Herald, Andreas STIHL Board member and Head (Marketing and
Sales) Norbert Pick said, “We feel there is great potential for growth
in areas where plantations are located as there is a huge shortage of
labour. 
***********************************************************************
The chief Executive Officer of the
nearly Rs 600-crore MTR Foods, Sanjay Sharma, speaks of the company’s
strategies and growth plans in the coming years in an email interaction
with Deccan Herald’s Umesh M Avvannavar and Hrithik Kiran Bagade.
Global payment services company MasterCard on Wednesday called
for the Prime Minister Jan Dhan Yojana (PMJDY) integrating other
players, including itself, for rolling out the latter’s schemes
currently, PMJDY is only being handled through RuPay.
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