Tag Archives: Manufacturing

Manufacturing Division Profit Seen Descending By 5.7% During Q2, Says CMIE

Centre for Monitoring Indian Economy (CMIE) has reviewed its estimation for net profit of the manufacturing segment during the September quarter downwards, mainly because of the poor show of petroleum products biz.

In its monthly appraisal, it stated, “We now expect net profit to fall by 5.7 per cent, against our earlier expectations of a 34.2 per cent rise. This is on account of a downward revision in the profit forecast of the petroleum products industry.”

But, CMIE anticipates the manufacturing division to continue its growth impetus by recording a 20.7% increase in net sales during the September quarter.

A steep reduction in profit of the petroleum products business and big losses to be incurred by the aviation business are likely to confine the development in business profit during the second quarterly period.

The report signalizes that exclusion of 5% import duty on crude during the month of June was likely to have a optimistic impact on the earnings of petroleum products business during the existing quarter.

“But, a sharp rise in crude prices in July prompted us to revise our forecast for crude prices upwards for the September quarter and for the full fiscal,” it said.

“We expect the rise in crude prices to offset the impact of duty removal. The industry is now expected to report a steep 56.7 per cent fall in net profit in the second quarter as against 33.1 per cent fall expected earlier,” CMIE added.

CMIE estimates net profit development of manufacturing division (apart from petroleum products) during the quarter almost unaltered at 32.5%.

Bosch Along With Siemens To Set Up Manufacturing Facility In Tamil Nadu

Europe’s biggest home appliances manufacturer BSH Bosch together with the Siemens Group, have decided to make a joint investment of around Rs 500 crore to establish a manufacturing plant near Chennai.

The German firm, via its arm BSH Household Appliances Manufacturing Pvt Ltd, proposes to make home appliances at the novel unit.

As per official statement, the company has requested the state administration to provide 42 acres at Sipcot Industrial Park in Pillaipakkam for establishing the plant, which will manufacture air-conditioners, refrigerators as well as washing machines.

Acceding to its request, Chief Minister Jayalalithaa duirng a function delivered the Letter of Allotment of land to Bosch’s Zonal Manager V K Viswanathahan.

With the establishing of the novel plant, the company would offer up jobs to 2,000 individuals.

Moreover, electronics giant Samsung has made an investment of more than $100 million in their plant in Sriperumbudur .

Panasonic also possesses a plant in Sholavaram and Chennai is also home to original equipment makers like Foxconn and Flextronics.