Mysore Monarch’s Car Open for Public Sale

As per reports, 100-year-old Rolls Royce owned by Krishna Raja Wodeyar IV, who was designated as the previous Mysore monarch’s precocious hammer car would shortly opened for public sale.

While the whole issue came into limelight when the Daily Mail reporters accounted that the man was supposed to be having one of the most expensive heritage car, as he was the richest person in the world.

Moreover, his planned hammer attack probably would fetch a huge amount of 400,000 pounds for the charity.

In the meantime, while sharing his views about the auction event, the event’s spokesperson, accounted that earlier the car was known as Silver Ghost and the model certainly have some improved technical machinery in it, which is supposed to be the most prized one in the market.

He added, “The Rolls-Royce Silver Ghost was the origin of the company’s claim of manufacturing the best car in the world”.

On the other hand, the reports further stated that a second Rolls-Royce Silver car’s 1908 model was also planned to be put for sale on the similar occasion.

Moreover, the other car too came under among the most valued list, as it was one of the only existing examples of that era.

Can India control Inflation and Manage to Reach Growth Targets

Indian economy faces tough times in coming quarters and Finance Ministry might find it difficult to keep inflation in control. Major trouble for the Indian economy is the expected slowdown in demand in western countries. The export related sectors might feel major impact on earnings and margins.

RBI has increased the base rates by 11 times since March 2010. The
interest rates for home loans have increased, putting more pressure on home loan consumers. New home loans have become expensive and this has bad effect on real estate sector.

With increasing borrowing costs, business owners are finding it difficult to raise money in India. There are many projects in infrastructure and power generation sector, which need higher investments.

With expected decline in manufacturing sector growth numbers, Indian companies may not be able to maintain the current margins. Stock market valuations for most companies have declined in the recent times. Banking, Real Estate and Technology stocks are trading near their 52-week lows. Major real estate companies are facing troubles for their housing projects. Brokerage houses across the world have given mixed outlook for Indian markets.

RBI expects inflation to remain higher for upcoming two quarters. The report points out that Inflation may reach 7% by March 2012. US Dollar has crossed Rs 46 level as FIIs continued selling during the past two weeks.

Goldman Sachs has said in recent research report that inflation will fall to six percent by March 2012. Goldman Sachs gives reduction in demand as major reason for the decline in inflation however, it is not sure that inflation can fall so much within 9 months. The oil prices are expected to remain strong in India and we have noticed in past that the oil prices generally do not go down in the country.

Top Stories in Indian Automobile Sector this week

This week, BMW India said that the luxury car maker will be aggressive about Indian market and will bring out coupe version of 6 series. The company has also planned to launch BMW 3 series convertible by the end of this year in India.

BMW has been doing pretty well in India and owns mor than 40% market share in premium car segment. The company president Andreas Schaaf is confident that they will be able to sell over 10k cars this year. The company has already sold 5364 cars till July. With the new model launch and better marketing efforts, the company can reach around 50% market share in India.

BMW X3 launch was delayed in India due to technical reasons. The car has been recenly launched with starting range of Rs 42 lakh.

To compete with market leader BMW, Audi has reduced the price of 2.0 litre TDI engine Q5 price to 35 lakh. Audi has been trying hard to increase its market share in India. As other markets in Eurozone and US still face lower sales, the premium car segment has been growing in India.

BMW has also raised its Chennai plant capacity to meet rising demand in Indian market. The company has capacity of making 11k SUVs and cars at present.

Another car maker betting high on the Indian market is Renault Nissan. The company informed that its Chennai facility has reached 100k petrol engine milestone. The plant started petrol engine manufacturing May 2010.

The Chennai facility manufactures Renault Fluence and Micra at present and plans to shortly start Renault Koleos and Nissan Sunny. Companies are expecting mid size car markets to have better growth in coming quarters.

Volkswagen was not able to impress the Indian consumer with its Jetta. However, the company is trying hard to bring back customer interest with an updated version launch. The Jetta comes with diesel engine and offers better performance.

Jetta Trendline is priced at Rs 13.8 lakh while Jetta Highline DSG comes with a price tag of Rs 17.47 lakhs. Time will tell if Indian consumers will buy the car which offers good performance but seems expensive at current price tag. There are many other options in this price range and some cars which offer better value for money.

Hindustan Motors-Mitsubishi has launched limited edition Mitsubishi Outlander Chrome with a price tag of Rs 20.5 lakh. The car comes with side skirts, upgraded interiors, LED floor illumination lamps and many other features which add class. There are many more options for SUV lovers in India now.

BMW India to Intensify Its Luxury Car Segment

German automobile giant BMW has been aiming to expand its luxury car segment in India by 10 times over the next 10 years.

The company has recently launched its X3 vehicle priced between Rs 41.2 lakh and Rs 47.9 lakh.

BMW India President Dr. Andreas Schaaf during the launch of BMW X3 SUV in Pune stated that the luxury car sales in India have been witnessing growth and the company has been expecting a boost in the near future. He said that BMW India has been anticipating 60,000 units’ sale annually by 2021 and soon they will be investing Rs 70 crores to heighten its sales.

Dr. Schaaf announced that their annual production capacity has increased since June as BMW India’s only manufacturing and assembling unit in the country is located in Chennai where the production capacity has increased by
1,000 units.

“We have expanded our production facility by starting the second shift of production. The production has been expanded to 11,000 units annually from 10,000 units”, Dr .Schaaf said.

Also, in March, the company had increased its production capacity from 8, 000 to 10,000 units per year in single move.

Dr. Schaaf added that that if required the company will add another assembly line and will increase the output of the second shift by adding more production.

Steel Rates To Climb Further From Oct This Year, Says CMIE

As per CMIE report, domestic steel giants are likely to increase rates further during the month of October on account of a expected upswing in manufacturing as well as infrastructure construction actions.

In its monthly assessment, the Centre for Monitoring Indian Economy (CMIE) stated, “We expect steel companies to hike prices in October-November once industrial and infrastructure construction activity gathers pace.”

During the existing financial year, CMIE anticipates finished steel rates to average 7% higher than during the last fiscal.

It should be mentioned that steel rates have already mounted around 15% during the first quarter of 2011-12.

But, it has sharply reduced its growth estimation for finished steel fabrication for 2011-12 to 9.5% as against 12%.

“The downward revision is due to the lower-than-expected growth in demand for steel in the first quarter and a shortfall of iron ore likely to be faced by the steel units in Karnataka,” it said.

Previously, Tata Steel Managing Director HM Nerurkar stated that domestic steel demand was expected to nurture at around 9% in the existing financial.

The steel giant anticipates steel rates to stay stable, with rates climbing or dropping by Rs 1,000 a tonne for some time.

The majority of firms have inked coking coal agreements for the existing quarterly period at $315 per tonne, which is 40% higher than the year-ago level.

“If the ban continues for long, the plants located in Karnataka will have to cut down production,” the CMIE said.

Quality Bakers Goes Gluten-Free

With increase in demand of gluten-free cakes, Quality Bakers have unveiled a bakery shop at Huntly, which is apparently a pure gluten-free bakery.

The baking company had paid out more than $2 million in establishment of the new bakery. The Company will not offer any wheat based products in the shop. The bakery aims to produce the best tasting gluten free products such as bread, slices, cakes and cookies.

The new bakery has been opened in association with two most popular and well loved New Zealand brands, Vogel’s and Ernest Adams, whose gluten free products will be manufactured at Huntly. The new establishment includes products such as Vogel’s 6 Seed Gluten Free Bread, Ernest Adams Gluten Free Raspberry Slice and Ernest Adams Gluten Free Chocolate Chip Cookies.

As per Roger Gray, Managing Director of Quality Bakers New Zealand, “We are also delighted to be supporting the vibrant community of Huntly with jobs that will put the town at the centre of gluten free manufacturing with products being delivered to consumers from the Cape to the Bluff”.

The gluten-free products have become popular with people of New Zealand because of the coeliac disease increase. With the availability of gluten free bakery items, people allergic to gluten can enjoy these products.

Aditya Birla Nuvo’s Textiles Revenue To Increase Two Fold By Next 5 Yrs

Diversified Aditya Birla Nuvo anticipates its textile section to more than double its income to Rs 750-800 crore by the next four-five years.

The textiles biz of the company falls under Jaya Shree Textiles, a completely-owned division that brings in 14% to the company’s manufacturing biz.

At present, the textiles biz, which makes linen fabric and yarn, has revenue of Rs 300 crore.

Aditya Birla Nuvo has retail stores under the brand Linen Club, which retails fabric and ready-made garments. It plans to open 14 new outlets in the current fiscal year from 46 currently.

S Krishnamoorthy, president, textiles division, stated, “Our focus is to expand our retail footprint going forward and in the next five years we plan to have 200 stores. It will all be franchisee outlets.”

The company is eyeing a promotion operation for Linen Club and has outlined a capex of Rs 15 crore for the existing fiscal.

The stores are likely to see a same-store sales expansion of 15% in the existing fiscal as against an average of 15-20% during the last years.

Aditya Birla Nuvo also proposes to lift up linen fabric capacitance by 30-40% by 2013.

“We will add capacity in our existing plant in West Bengal. The total linen capacity at the plant is 9 million metres per annum now,” Krishnamoorthy added.

Aditya Birla Nuvo also stated that it is eyeing an increase in raw material costs and has already augmented costs of fabric by 7-8% during the past six months.

On August 19, the stock of the company declined 1.9% to end the week at Rs 853.50 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 969.70 and a low of Rs 728.05 on BSE.

Current EPS & P/E ratio stood at 84.57 and 10.09 respectively.

Force Motors Launches First SUV Force One at Rs 10.65 lakh

Force Motors, is reported to have launched its first SUV Force One, and at Rs 10.65 lakh in Delhi, and the company is using the drivetrain technology gotten from Mercedes-Benz for the SUV, as its Passenger Vehicle Division spent the last one year or more to develop the new SUV.

Also, the company hopes to sell 4,000 units of the SUV in the first year, as the market size for the sector is about 70,000 units a year and the SUV is said to compete with, Mahindra Scorpio, Toyota Innova and the Tata Safari.

However, Force Motors intends to invest Rs 1,000 crore, in the next two years to boost its manufacturing footprint, and the company is presently discussing with the Madhya Pradesh Government to start a new manufacturing plant, with the decision being finalized in the next two months.

Hence, funds are said to be raised by combining of internal resources and loan, as the company might follow the capital market route as well as propose a rights issue.

Moreover, Dr. Abhay Firodia Chairman of Force Group, Stated: “The company may set up a new assembly line at its Pithampur facility or set up a third plant outside the state, and the installed capacity of the new line will be 12,000 units per annum that can be expanded to 24,000 units”.

Maruti Suzuki Proposes Rs 6000 Cr Medium Term Investment

Maruti Suzuki has eyed a medium term investment of Rs 6,000 crore, portion of which will be used to fabricate vehicle stock yards in India by the next 1-2 years.
After introducing the novel edition of ‘Swift’, Maruti Suzuki Chief General Manager (Marketing) Shanshank Srivastava stated, “Maruti Suzuki has planned a medium term investment of Rs 6,000 crore for building of stock yards and manufacturing unit in the country.”
Country’s biggest car manufacturer launched its initial stock yard with a capacitance to park 2,000 units in Bangalore that recently turned functional.
The second yard would be introduced Nagpur, whilst the sites for some others are yet to be determined.
Mr. Srivastava added that one of the yards would also be set up in Madhya Pradesh.
Out of the said Rs 6,000 crore investment, about Rs 1,800 has been spent on the company’s second manufacturing facility at Manesar near the national capital, which would be ready shortly.
Around Rs 1,900 crore will be invested on the third division, which will also come up at Manesar.
Remaining finances would be used on a research and development plant at Rohtak, stock yards and brand centres.
Maruti Suzuki envisages establishing 14 brand centres in India to exhibit its products.
While talking after the introduction of the novel ‘Swift’, he said, Maruti Suzuki’s sale chart had grown sharply with around 12,000 units being sold on a monthly basis in the country.

Administration Plans To Set Up Novel Training Centres For MSME Section

The administration is making plans to set up more than 50 novel training centres for advancing talents of personnel in the micro, small and medium enterprises (MSME) segment.

The National Skill Development Corporation plans to offer up skill training to around 150 million individuals by the year 2022.

MSME Secretary Uday Kumar Varma stated, “Of these 150 million, 15 million people have to be skilled through my ministry … I think there is a necessity to set up 52 more tool rooms. At least 2-3 in each state.”

Presently, there are 10 training centres in the nation, comprising in Kolkata, Ludhiana, Ahmedabad, Bhubaneswar and Jamshedpur.

The individuals would obtain training in tool and dye-manufacturing.

Mr. Varma stated that at present, the ministry is training approximately a million individuals.

“We certainly need to expand the existing ones and create many more tool rooms in the country,” he said.

Tool rooms are self-governing societies financed by the administration. They are money-making bodies and self-sufficing.

The administration offers up finances for capital development and a range of activities including substitution of machines, he said adding around 40,000 individuals receive training in one year in these centres.