. |
. |
Fiat not to re-introduce NEW DELHI, Aug 31: Fiat Auto SPA has decided not to re-introduce the...more IFCI, ICICI to invoke personal guarantees of big-time defaulters NEW DELHI, Aug 3l: Close on the heels of Infrastructure Leasing Financial Services (ILFS) decicing to invoke personal...more
Strategy outlined for NEW DELHI, Aug 31: The Associated Chambers of Commerce and Industry.....more |
 |
NEW DELHI, Aug 31: More than 60 indian footwear manufacturing and exporting companies will participate in the forthcoming GDS...more HVPN to cut down power HISAR, Aug 31: Haryana Vidyut Prasaran Nigam (HVPN) has decided to....more EPC status to KVIC can wait: Commerce Ministry NEW DELHI, Aug 31: A top Commerce Ministry official has said the Khadi and Village....more Montari to wipe out NEW DELHI, Aug 31: Montari Industries Limited (MIL), an agro-chemicals ...more
Fiat to price Palio in NEW DELHI, Aug 31: Fiat S P A of Italy has decided to price its second.....more |
 |
Fiat not to re-introduce Uno trend for mass sale NEW DELHI, Aug 31: Fiat Auto SPA has decided not to re-introduce the stripped down version of its popular small car uno — Uno trend — in the Indian market as a mass sale product. "The trend was introduced in a bid to stave off increasing competition in the segment. However, later we noticed that customers preferred a fuly loaded car to a stripped down version and this prompted us to take them off regular production," Mr Gianni Ravina, Managing Director of Fiat Indauto Limited (FIL), told here. The Uno trend was earlier introduced for the growing taxi segment in India. However, with the introduction of new models in the small car segment, the company decided to introduce the car for its regular customers as well. The Uno trend was introduced for regular customers in January and was taken off the roads within six months. FIL, which produces the Uno in India, is a joint venture between Fiat India Automobiles Limited and the Vinod Doshi-run Premier Automobiles Limited. Uno sales, Mr Ravina said, are presently in the range of 2,000-2,500 units per month. Regarding the recent decision by the Italian car maker to up its stake in the joint venture from 51 per cent to 76 per cent, mr ravina said the move stemmed out of Fiat’s plans to consolidate its car-making activities in India. Fiat has also decided that all its project 178 operations, for the Siena and Palio range, will now be carried out by FIL. Fiat India Automobiles Limited, a wholly-owned subsidiary of Fiat Auto S P A, had pumped in Rs 250 crore into the joint venture company for hiking the stake. Fiat already has the Foreign Investment Promotion Board (FIPB) approval to convert the joint venture into a wholly-owned subsidiary. However, the company is not keen on exercising this option immediately. "We are happy with the present structure and do not feel the need to immediately hike the stake in the venture. However, if the need arises, we can surely look into it," Mr Ravina added. Meanwhile, Fiat Auto SPA and Ford Motor Company of the United States are exploring the feasibility of jointly manufacturing engines and other vehicle parts for the respective future vehicles designed for India. An agreement to this effect was recently signed between the two car majors and Fiat’s manufacturing facility in Kurla, Maharashtra, is being explored as a possible production site for the engines. The study is expected to be completed by the end of 1999. "The exact plant location and other information, such as plant production capacity, employment and the timing of future plant operations, will be part of the study effort," senior Fiat officials said. Fiat has been operating in India since 1905, when Bombay motor cars was appointed as the first sales agent for its cars. By 1927, more than 1,600 fiat cars had been exported to India. In 1951, Fiat signed a license and servicing contract with Premier Automobiles Limited (PAL) for the production of Fiat 1100 model. Assembly of the model at PAL’s Kurla factory began in 1954. By 1958, there were over 10,000 fiat 1100s on the road in India. In 1981, the Fiat 124 was selected for the second license contract granted to PAL. In 1996, production of Fiat Uno hatchback began at Kurla. In March 1997, Fial, a whiolly-owned subsidiary of Fiat, was set up and in 1998, Ind Auto Limited, a 51-49 joint venture with PAL, was formed. Later, in 1999, the Fiat Siena Sedan model was launched. Fiat is also present in India through its subsidiaries — Iveco (for commercial vehicles), New Holland (Tractors), Teksid (Foundries) and Magneti Marelli (Automotive Components). (UNI) |
|
IFCI,
ICICI to invoke personal guarantees NEW DELHI, Aug 3l: Close on the heels of Infrastructure Leasing Financial Services (ILFS) decicing to invoke personal guarantees against defaulters, ICICI Ltd and Industrial Finance Corporation of India would resort to this punitive step to reduce their Non-Performing Assets. "Whereever we have personal guarantees we will invoke them", IFCI’s top sources told. When asked whether the corporation had taken this extreme step in the past, the sources said "whether we have done in the past or not is immaterial, we will invoke personal guarantees if needed". Many of IFCI’s exposures are backed by personal guarantees of borrowers, including big-time industrialists. ICICI Ltd sources said they are also determined to reduce their NPAs and invoking personal guarantees is one of many ways being resorted to by the company. "We have these guarantees and will invoke them", ICICI sources said. The asset quality of the banking and financial sector has deteriorated in the last few years because of many sectors like steel,cement and manufacturing facing severe recession. IFCI has an alarming level of NPA of 20 per cent while for ICICI it is 7.6 per cent. Both these institutions have been making efforts to reduce the NPA level and taken special initiatives including formation of special groups. The initiatives include increased emphasis on corporate governance and active role of the institutions’ directors on the corporate boards even if there is a resistance from the industry. Mumbai-based ILFS recently invoked personal guarantees against Delhi based industrialists. The guarantees have been invoked against their houses and farmhouses. The total Non-Performing Assets of the Indian banking sector have exceeded Rs 45,000 crore.According to ICICI Managing Director and Chief Executive Officer M V Kamath, the financial intermediaries in future would take recourse to the cash flows on the infrastructure projects like telecommunication and power. He admitted that the FIs had done a mistake by not taking recourse to the cash flow. (UNI) |
|
Strategy outlined for beefing up states’ consolidated fund NEW DELHI, Aug 31: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has outlined on eight-point strategy for beefing up the consolidated fund of states for use by urban local bodies and panchayati raj institutions. In a strategy paper submitted to the Finance Ministry today, ASSOCHAM president K P Singh has recommended a package for sustainable development of physical infrastructure to raise living standards of the rural and urban poor. The recommendations, inter alia, include the grants-in-lieu of railway passenger traffic (non-suburban) should be separately quantified and earmarked for municipalities/local bodies according to a pre-determined formula. The State Governments should explore the possibility of increasing taxes from the identified sources or levying fresh taxes for sharing with municipalities/local bodies. The exemption from taxes enjoyed by the Union and State Governments by virtue of the constitutional provisions under Articles 285, 287 and 289 should be reviewed insofar as these relate to the properties of the Union/State Governments. Though otherwise subject to taxation by the municipalities/ local bodies, such properties escape the tax net because of the constitutional exemption provided. The municipalies/local bodies exempt properties from house tax up to specified coverage. Now that the income tax authorities have on the basis of "one by six criteria" identified potential tax assesses in metropolitan and other towns, ASSOCHAM has suggested that as a result of the tax widening base by income tax, exemption from house property be reviewed and the some criteria as applicable for IT for property tax liability be made applicable. A small per transaction tax on banking transactions may be levied and the proceeds utilised for providing a measure of safety net for teachers by way of pension, gratuity coverage etc. The corpus for the fund, besides the proceeds from this levy, may comprise a matching contribution of the states and the concerned beneficiaries at rates to be determined through a actuarial calculations. The management and utilisation of the fund should be through statutory trusts specifically set up for the purpose on the pattern of EPF. The chamber said that even after 50 years of planning, India spends only 3.8 per cent (of GDP) in terms of public expenditure on education. For education, a ‘cess’ may be considered for levy the proceeds of which may be shared with the states with the stipulation that the states transfer an earmarked percentage to their municipalities/local bodies according to a pre-determined formula. Such funds be utilised by the recipient grantees only for strengthening educational levels and building infrastructure. For proper utilisation of funds, the chamber has called for appropriate monitoring mechanisms for strict adherence by the concerned recipients of funds. While ASSOCHAM commended the adequacy of transfers to the states by way of earmarking from statutory share for the states and grants for onward transmission to municipalities/local bodies for social infrastructure needs, it has strongly urged that the municipalities/local bodies should be subject to the same regimen of financial prudence and discipline as the 11th Finance Commission may prescribe. (UNI) |
|
|
NEW DELHI, Aug 31: More than 60 indian footwear manufacturing and exporting companies will participate in the forthcoming GDS, billed as the world’s leading international shoe fair, to be held from September ten in Dusseldorf, Germany. India has been accorded the partner company status for the first time this year. According to an Indo-German Export Promotion Project (IGEP) press release, a comprehensive strategy has been jointly chalked out by the Council for Leather Exports (CLE) and IGEP, to present an impressive image of India to the world at the coming GDS shoe fair. A fashion show with display of Indian footwear and component designs and buyer seller meet will be the major highlights of the fair. As part of the strategy, a German shoe designer along with his team from FDDI (Footwear Design and Development Institute) NOIDA, have started working with Indian companies to help them prepare a fashionable collection to be presented to European buyers at the GDS shoe fair. Dr D Kebschull, director, IGEP, said that the ‘partner country’ status has come at the most opportune time to garner additional market share in the 15 member European union shoe market, which has remained almost static over the last two years. By giving the coveted partner country status to India, the German and other European footwear importers have showed a renewed interest in Indian leather products, he added. A huge demand for children and ladies shoes is now being met through imports from China Vietnam and few other countries, and this is the area where Indian exporters are missing out. The use of german footwear experts will help the Indian companies to overcome this handicap. Germany, the single largest common market, imports a monthly average of 66.5 million pairs from outside the EU sources. While India’s share is about two million pairs per month, China leads the exporting league with a monthly average supply of 23 million pairs followed by 12 million pairs from Vietnam. Germany has continued to be the single largest market for leather and leather products from India. With a share of 20 per cent of India’s overall leather sector exports, it has been an important market for Indian companies, particularly for footwear. While the per capita consumption of shoes in Germany was 3.79 in 1999, in EU it was 4.18, encouraging Indian exporters to focus on the EU market. (UNI) |
|
HVPN to cut down power supply to steel plants HISAR, Aug 31: Haryana Vidyut Prasaran Nigam (HVPN) has decided to cut down power supply to steel furnaces and steel plants in the state with immediate effect till September 10 in a move to streamline power supply. An HVPN spokesman said here today that it has also imposed power cut for half an hour in urban areas. However, power supply will not be interrupted between 1900 hrs and 2200 hrs. And no power cut will be imposed on essential services like railways, radio station, telephone service and hospitals, the spokesman said. Meanwhile, the steel plants owners association have criticised the decision saying the move would affect their business. (PTI) |
|
EPC status to KVIC can wait: Commerce Ministry NEW DELHI, Aug 31: A top Commerce Ministry official has said the Khadi and Village Industries Commission (KVIC) instead of seeking the status of Export Promotion Council should encourage manufacture of quality products for exports. "Giving thrust to production of export-oriented goods is more important than conferring EPC status to KVIC," Mr S B Mohapatra, additional secretary, Commerce Ministry, said here. It may be recalled that a High Power Committee headed by former Prime Minister P V Narasimha Rao in its report had recommended "KVIC should be declared as registering authority for export of KVI products with powers for inspection and certification. It should be given the status of an EPC". Mr Mohapatra said KVIC should develop value-added khadi and silk products for high fashion export markets. "Rebates may not boost exports if quality is not improved. In order to enhance quality, KVIC should network with local research and development organisations for developing relevant technology," he added. On the rebates, the additional secretary was referring to the five per cent cash subsidy given to exporters of village industry products on the recommendation of the High Power Committee. Mr Mohapatra was reacting to the demand raised by KVIC chairman Mahesh Sharma to according EPC status to KVIC. Mr Sharma raised his demand on the ground that there is no EPC for the KVI sector and the exporters in this sector have to tap various existing EPCs. Mr Sharma pointed out that KVIC should rightly be accorded the status of EPC as the Commission had been nurturing a sector which is essentially decentralised with institutions and units spread over 2.5 lakh villages. "The unique selling point of KVI products are its purity, eco-friendly, natural products, bio-degradable and organic inputs which have to be exploited for better of the KVI sector under a single window export promotion council," Mr Sharma added. Under the aegis of KVIC, exports worth Rs 29 crore were achieved in 1998-99. The merchant routed exports of KVI products were about Rs 100 crore in the same year. The KVIC has set a target of achieving 250 million dollars worth exports by 2004. SSI secretary C T Benjamin regretted that the share of khadi and village industries in India’s total exports is "woefully low" and said quality improvement would boost its exports. "In a globalised economy, the khadi and village industries will have to provide for continuous upgradation of quality, cost cutting measures and marketing and after-sales service," Mr Benjamin said adding only those equipped to face this challenges are likely to succeed abroad. (UNI) |
|
Montari to wipe out losses by 2003 NEW DELHI, Aug 31: Montari Industries Limited (MIL), an agro-chemicals company of the Bhai Mohan Singh Group, hopes to completely wipe out its Rs 69 crore accumulated losses by the year 2003, a top company official said. "We hope to receive Rs 28 crore in reliefs and concessions from banks and financial institutions on our total dues of about 35 crore while promoters Bhai Mohan Singh Group would contribute Rs ten crore and the rest Rs 31 crore of the losses would be met out of future profits," Mr Ashok Mehra, group chief executive officer, told. The promoters’ share would come through the sale of personal property and their over ten lakh shares in Bausch and Lomb India Limited (BIL). The promoters have already divested their equity from BIL to Morgan Stanley along with the 17 lakh shares, held by MIL, to Morgan Stanley at an average price of marginally over Rs ten a share. With the Rs 27 crore realised from the BIL shares, MIL paid off its two main institutional creditors — ICICI and IDBI — and received a no due certificate. "This has enabled the company to save an additional burden of Rs 15.3 crore and thereafter there would have been an increase burden of 16.5 per cent per annum on the total dues of Rs 41 crore," Mr Mehra said. By paying off their dues much before the rehabilitation scheme was sanctioned for the sick MIL by the Board for Industrial and Financial Reconstruction (BIFR), the company is hopeful of a favourable treatment from its other creditors — Indian Bank, Anz Grindlays and Standard Chartered Bank, he added. However, the company’s expectations hinges on the ruling of the Appellate Authority for Financial and Industrial Reconstruction (AAFIR) following an appeal filed by the company against a BIFR order. It may be recalled that BIFR had taken exception, taking note of the protest lodged by the Punjab and Sind Bank, to the urgency in paying off ICICI and IDBI in preference to other creditors and had asked MIL to deposit the amount realised from the sale of BIL shares into a non-lien account. On the third basis of wiping out accumulated losses- upto Rs 31 crore from operating profits, Mr Mehra said the company has initiated a host of cost cutting measures. The company has saved Rs 40 lakh annually by consolidating its R and D operations, plant and export offices at Ropar, Punjab, he added. MIL has been improving gross margins to 44 per cent in 1997-98 from 27 per cent in 1995-96 even while registering a 12 per cent growth in business turnover as against an industry standard of ten per cent, the company official said. On the manufacturing front, the agro-chemicals company with 20-25 per cent marketshare has been able to increase its capacity from 150 metric tonnes a month to 200 mt a month "without any additional capital costs," he claimed. (UNI) |
|
Fiat to price Palio in Rs 4-5 lakh range NEW DELHI, Aug 31: Fiat S P A of Italy has decided to price its second world car for India — Palio — in the Rs 4 lakh to Rs 5 lakh bracket, a senior company executive said. However, the final price tag that the hatchback vehicle would sport is yet to be decided, Mr Gianni Ravina, Managing Director of Fiat India Automobiles Limited (FIAL), a wholly-owned subsidiary of Fiat SPA, said here. The company is presently assessing whether to launch the Palio weekend stationwagon or the Palio hatchback in India first which are likely to hit the streets in the first quarter of the year 2000. "We are studying the market at present and are likely to arrive at a decision within a month," he added. Palio would be introduced in the Indian market with a 1.2 MPI (Multi-Point Injection) fire petrol unit. This four cylinder overhead camshaft engine delivers 72 bhp at 6000rpm. Its torque rating is 10.2 kgm at 3000rpm. Palio is part of Fiat’s world car project, also code-named project 178, under which the company would be introducing a family of five cars sharing the same platform and a number of major components. The modular project consists of the Palio hatchback, Siena Saloon and the Palio weekend station wagon, all three of which will be manufactured in India. The other two members of the 178 family are a pick-up version and a van. The company has already pledged one billion dollar investment in India over the next five years for varied activities, including locally manufacturing engines and transmissions under the Palio world car project. The entire investment would flow into the mechanical and automotive sectors and will come through Fiat SPA and its subsidiaries. The Siena has already been introduced with a Rs 5.50 lakh price tag for the base petrol model. The petrol ELX version of Siena sports an ex-showroom (Delhi) price tag of Rs 550,457 while the ELX-PS version has been priced at Rs 574,995. The Siena diesel EL-PS sports a Rs 614,235 price tag while the ELX-PS version is priced at Rs 668,254. (UNI) |
|
|
