Daily Excelsior...Business

ICICI Bank may cut home loan rates in Q1 FY’09

NEW DELHI, Jan 13: Home loan consumers in India may get some good news in the months to come with country’s biggest private lender ICICI Bank saying it ...more'

Bajaj brothers to resume battle at CLB

NEW DELHI, Jan 13: Bajaj scions Rahul and Shishir, who are battling for division of the empire, are expected to inform the Company Law Board about the ...more

FIEO says export loss at $7 billion due to rupee rise

MUMBAI, Jan 13: A sharp appreciation of rupee against US dollar is estimated to have led to loss of exports worth about USD 7 billion over the last one year, according to Federation of Indian ........more

NCDEX eyes 25 pc market share in gold futures trade

MUMBAI, Jan 13: Concerned over the falling volume in agri-commodities, National Commodity and Derivatives Exchange is looking at increasing its market share in gold futures trading by five times to 25 per cent.With a recent spurt in the prices, gold as an investment option in the portfolio of investors has regained prominence.......more

Future Group to pump in Rs 300 cr in Future Ventures

KOLKATA, Jan 13: The Future Group will pump in Rs 300 crore in Future Ventures India Ltd this year to facilitate acquisitions by the group......more

Genpact open to acquisitions in India, overseas

KOLKATA, Jan 13: Business processing outsourcing major Genpact Ltd has said it is open to acquisitions in India ......more

Marvel Tea gets export order from UAE

NEW DELHI, Jan 13: Marvel Tea Estate India Ltd today said it has bagged an export order of one lakh kg tea from the United Arab Emirates.....more

Partial implementation may affect fiscal health: ASSOCHAM

NEW DELHI, Jan 13: The 6th Pay Commission may recommend a hike in the salaries of Government employees and a restructuring of departments, but if the Centre chooses to raise the wages, ignoring other suggestions, it could throw the fiscal discipline out of gear, an industry body has said.The strength of Government employees should be downsized and .......more

Ashok Leyland eyes DTC tender for low floor buses ....

Railways to install CCTVs at 50 stations on suburban line

Fiat to hike component sourcing from India, touch 150 mn euro...

Hyundai plans ‘i20’ manufacturing in India for export...

ICICI Bank may cut home loan rates in Q1 FY’09

NEW DELHI, Jan 13: Home loan consumers in India may get some good news in the months to come with country’s biggest private lender ICICI Bank saying it could cut interest rates in the first quarter of next fiscal.

Lower rates would not be only for new customers, but existing floating-rate clients also, ICICI Bank’s Managing Director and CEO K V Kamath said in an interview.

"We expect the (interest) rates to drop in the first quarter. After that we will see if we can write down the rates (for our customers)," Kamath said when asked if ICICI Bank would cut housing loan rates.

The bank is also looking to start risk-based pricing, under which it would start offering lower rates to consumers with better creditworthiness, in about two years, he said.

However, any rate cut for consumers, who have had to reel under a number of interest rate hikes in the current fiscal, would depend on benchmark interest rate trends developing over the coming months.

Ruling out any possibility of interest rates firming up in the near future, the ICICI bank chief said, "I do not foresee an immediate increase in home loan rates. To me that is a good news. At least, you are able to contain the rates."

Stating that the job of a banker also involves bringing down the rates, Kamath said, "We will have to ride out this quarter. Every bank would have to ride out this quarter. Because the last quarter of a year is the quarter when things go haywire. Then you expect the first quarter of the next year to correct."

Last week, another leading housing loan company HDFC’s Chairman Deepak Parekh had said in Mumbai that he expected interest rates to soften by 25-50 basis points in the first quarter, given RBI does not hike the cash reserve ratio. (PTI)

Bajaj brothers to resume battle at CLB

NEW DELHI, Jan 13: Bajaj scions Rahul and Shishir, who are battling for division of the empire, are expected to inform the Company Law Board about the outcome of their peace talks on January 14 (rpt) 14.

As per a CLB schedule, it would resume hearing on the four-year-old case on Monday and counsels representing the Bajaj brothers are expected to inform the board about the outcome of their efforts for an out-of-the-court settlement.

On November 26 last year, both the factions informed CLB that the negotiations on an amicable agreement was still in progress.

In October, CLB had directed the two sides to prepare a report and submit the contentious issues that have stopped them from reaching an agreement. However, no further movement was made in this regard on November 26.

The feuding brothers are expected to file this report on January 13.

In the last hearing, Shishir's side had accused Rahul of mismanagement and oppression in the group holding companies.

Both sides have already terminated a Memorandum of Understanding signed between them three years ago.

The Board had allotted Shishir Bajaj three days of consecutive hearing from January 14.

On the other hand, Rahul's side has been granted five sessions -- January 28, 29, and February 14-16 -- to complete its arguments. (PTI)

FIEO says export loss at $7 billion due to rupee rise

FIEO President Ganesh Kumar Gupta said things are quite gloomy as it is a buyers' market for many products, be it textiles, handicraft or leather. "Importers are not willing to give even one per cent rise as they can get same goods from our neighbouring countries, whose currencies have not appreciated like the Indian rupee," he added.

Value of rupee has risen by about 14 per cent in the last one year.

"If rupee appreciates by about three per cent in a year, exporters can adjust. But over 10 per cent appreciation in one year is something exporters cannot cope up with. The very profit margin in export business is 3-4 per cent," he said.

An exchange rate of Rs 41 a dollar is ideal, but currently, it stands at Rs 39.50 per dollar levels.

Responding to suggestions that exporters could look to invoice their exports in currencies like euro, Gupta said importers are not willing to go for such measures.

He said if immediate measures are not taken, the country will lose markets for products like garments. In fact, some Indian exporters themselves are setting up readymade garment factories in countries like Bangladesh, Sri Lanka and Jorden to deal with the challenge. (PTI)_

NCDEX eyes 25 pc market share in gold futures trade

With a recent spurt in the prices, gold as an investment option in the portfolio of investors has regained prominence.

"Bullion is hot today and we are looking at a decent market share of 20-25 per cent. Our present market share is 5 per cent and average trading volume estimated at Rs 250 - 300 crore per day," NCDEX managing director and CEO P H Ravikumar told PTI here.

"Gold has a particular value chain and we are working with the sector value chain to increase our market share," he said, adding that NCDEX is talking to importers of gold, channelising agencies, dealers, retail investors, seeking to increase the volume in the metal.

Although our market is only 5 per cent, our physical delivery is estimated at 40 per cent, Ravikumar added.

NCDEX has recently launched new gold 100 grams trading lot futures contract in a bid to attract retail participation in futures trading in the precious commodity. This contract was in addition to the existing gold (1 kg) contracts that are traded on the exchange.

With the launch of the new bullion contracts, a retail investor can now easily take a position in gold futures contracts by putting in margin money equivalent to 5 per cent in the case of gold contract value, Ravikumar said. (PTI)

Future Group to pump in Rs 300 cr in Future Ventures

KOLKATA, Jan 13: The Future Group will pump in Rs 300 crore in Future Ventures India Ltd this year to facilitate acquisitions by the group.

"Future Ventures would act mainly as an investment company for group's acquisitions. The group has decided to pump in Rs 300 crore within 2008," Future Capital Holdings Ltd (FCHL) Head (Investments & Acquisitions) Pankaj Thapar said.

Future Ventures India has Rs 250-crore funds with it and fresh investment commitment would boost the group's acquisition capability.

Thapar, however, said "investment by the group and the funds managed by us (FCHL) as advisers will not be clubbed."

FCHL manages four onshore and offshore funds and the combined investable resources under these funds would be around USD one billion.

"There will be no conflict between our's and funds of clients as investment advisory services. The offshore funds have restrictions and cannot invest in all sectors like retail. So, the group will look at those opportunities without hurting the interest of clients," Thapar said.

FCHL's investments as an adviser have a long-term view of up to 10 years.

"As our remuneration, we would get a management fee and we will be eligible for success fees if funds make a profit," FCHL chairman Kishore Biyani said. (PTI)

Genpact open to acquisitions in India, overseas

KOLKATA, Jan 13: Business processing outsourcing major Genpact Ltd has said it is open to acquisitions in India and abroad, and was evaluating such opportunities at present.

"We are open to acquisitions and focus markets would be India, US and Europe," Genpact President and CEO Pramod Bhasin said. However, he did not divulge details on the acquisition plan.

Genpact has operations in 30 locations in nine countries including US, China, Hungary, Philippines and Romania.

Besides inorganic route, the company's growth plans through organic means was optimistic as 75 per cent of the revenue at the end of quarter three was from the India operations.

"We are looking at a growth of 25-28 per cent both in terms of revenue and headcount," Bhasin said.

Company's Q3 revenue was USD 214.6 million, growing by 32 per cent over the same period last year.

The current global employer strength of the company was about 32,000, of which 24,000 was in India.

Genpact was expanding its domestic operations. "We will continue to expand in tier I and tier II cities," Bhasin said.

The New York Stock Exchange-listed company also said it has acquired a seven lakh sq ft facility in Kolkata to develop a mini-campus, which would eventually be able to house an additional 7,000 employees.

The investment for the new Kolkata facility would be around Rs 200 crore.

Genpact was recently allotted 12.45 acre by Orissa, 50 acre by Andhra Pradesh and 25 acre by Rajasthan. (PTI)

Partial implementation may affect fiscal health: ASSOCHAM

The strength of Government employees should be downsized and restructured with the use of technology, a Assocham statement said. The chamber asked the government to improve the efficiency of the state machinery after the pay revision for improving its financial health.

"The Pay Panel, which is expected to submit report soon, should suggest ways to reorganise the employees in such a way that overall efficiency of the state machinery gets a boost," said Assocham President Venugopal Dhoot.

It said, "While many states have come out of their red balance sheets in recent few years, there is a danger of their going back into the financial mess they were in few years back."

Referring to partial implementation of the Fifth Pay Commission report, Assocham said the salary expenditure of the states has gone up by 10-15 per cent, adding that the total salary expenditure as a percentage of Gross State Domestic Product (GSDP) in states increased to 5.67 per cent in 2004 from 5.25 per cent in 1994. (PTI)

Ashok Leyland eyes DTC tender for low floor buses ....

NEW DELHI, Jan 13: Country’s second largest commercial vehicle manufacturer Ashok Leyland Ltd said it hopes to bag the next tender for low-floor buses in the capital from DTC.

"We are ready with the products and have even demonstrated the it a few weeks ago. We will participate in the tender and with our superior product, are hoping to win the same," company MD R Seshasayee told reporters on the sidelines of a conference at the 9^{th Auto Expo here.}

^{The Delhi
Transport Corporation (DTC) plans to add an
estimated 8,000 buses to its fleet before the
Commonwealth Games 2010 and is likely to spend Rs
4,000 crore on the project.}

^{Ashok
Leyland, which launched its feature filled
concept intra-city ‘iBUS’ today, will
expect to take the second and third tender from
DTC of about 3,500 buses.}

^{"We
expect to sell 100-150 iBUS in 2008-09, with a
total potential of 1000 units" Mr R
Seshasayee said.}

^{The AC bus,
priced at about Rs 60 lakhs, has 42 seats and can
accommodate 30 people in standing, comes with
several intelligent features like ABS, WiFi
connectivity, closed circuit television capable
of running advertisements adding to the revenue
of the fleet operator.}

^{Mr R
Seshasayee said that every state is going through
a new wave of providing better transport
facilities to the public, also the upcoming
Commonwealth Games will add to already existing
huge demand in this segement.}

^{Tata Motors
Ltd won the first tender to supply 500 buses to
DTC last year.}

^(UNI)

Railways to install CCTVs at 50 stations on suburban line

MUMBAI, Jan 13: In order to provide greater security to its commuters, Central Railways will be installing closed circuit camera and televisions in at least 50 stations on its suburban line by April this year, railway officials said.

The cost of the project is estimated at Rs 1.6 crore and at most of the stations, Railways will be hiring firms to install and maintain the CCTV network, they said.

"There are presently 73 CCTVs which we have been installed at major stations like Chhatrapati Shivaji Terminus and Lokmanya Tilak Terminus. We are planning to install cameras at stations on the suburban line and other major stations," Shriniwas Mudgerikar, chief public relations officer of Central Railways, said.

Western Railways has installed CCTVs on many stations of its suburban line after the serial train blasts on July 1, 2006 that killed 187 persons and injured over 700.

The cameras will be installed at entry points to the stations and at other strategic locations like ticketing counters, but there may be some of the smaller stations with low passenger density which may not have cameras, an official said.

Central Railways transports over 30 lakh passengers daily on is suburban line which extends from south Mumbai to Khopoli in Raigad district and Kasara and in neighbouring Thane.

The Railways has installed CCTVs at the heritage structure, Chhatrapati Shivaji Terminus and other terminus in the city and will purchasing more of them, Mudgerikar said.

"All the stations on the harbour line will be equipped with the CCTVs while most of the stations on the main suburban line will also have them," he said.

The harbour line of the Central Railways links the Chhatrapati Shivaji Terminus to suburban Bandra and Panvel in neighbouring Navi Mumbai. (PTI)

Fiat to hike component sourcing from India, touch 150 mn euro...

NEW DELHI, Jan 13: Italian auto major Fiat, which plans to bring in a slew of products such as the Ferrari, Alfa Romeo and Maserati to India, is increasing component sourcing from the country expects to touch 150 million euros this year.

"Till three years back component sourcing from India for Fiat’s global operations was nill. In the last few years it has increased a lot and this year it will cross the 150 million euro mark," Alfredo Altavilla, chief executive officer of Fiat Powertrain Technologies SPA, said.

Fiat has been sourcing a wide range of components and expects it to grow by five per cent on a conservative estimate, he added. The company, which produces 1.3-litre multijet and a new five-speed transmission from its Ranjangaon unit in Maharashtra, is scouting for more customers in India.

"By introducing our small diesel engines, we are also looking for more customers in India," Altavilla said.

Tata Motors’ new Indica will be driven on its multijet engines, while Maruti Suzuki manufactures this on its own under a license from the company at the Manesar plant.

On possibility of exporting these engines, he said Fiat would initially focus on India and overseas sales would depend on how much Indian partner Tata Motors sources from it.

He, however, added that since the same engine was also produced from Poland, exports to Europe could be minimal.

Altavilla said the production capacity of the Ranjangaon plant was being expanded to 300,000 engines and transmission by 2010 from the current level of 200,000. The plant also produces one lakh cars.

Fiat had earlier announced it planned to bring its luxury brands, including Alfa Romeo and Maserati in India this year.

"It will be a matter of weeks when Alfa Romeo is introduced in India. We are looking at about three models, including a sedan and a sports car like the Spider," he said, but declined to comment on the possible price points.

He said Maserati would probably be launched before the year-end. These luxury brands would be distributed exclusively and not share space in Tata-Fiat dealerships, he said. (PTI)

Hyundai plans ‘i20’ manufacturing in India for export...

NEW DELHI, Jan 13: Country’s second largest carmaker Hyundai Motors India Ltd today said it is planning to manufacture premium hatchback ‘i20’ in India by the end of this year for sales in overseas market.

"We may produce ‘i20’ by the end of 2008 at Chennai plant," HMIL Senior Vice President (sales and marketing) Arvind Saxena said.

Initially, the car will be produced with an intention to cater to the overseas market as the company has not firmed up plans to launch it in the domestic market, he said.

The new car will be a step above Hyundai’s global car ‘i10’, rolled out here in October last year.

I20 will be produced from HMIL’s upcoming second facility at Chennai. With this new plant, the total capacity of the company will be expanded to 6 lakh units per annum, Saxena said.

HMIL has been stepping up efforts to make the country its export hub for small cars, with 50 per cent of its total capacity meant for the overseas market, he added.

The facility is expected to be operational in the coming weeks. The company is looking to sell 2.3 lakh units of ‘i10’ in 2008, with 50 per cent projected to be overseas sales. So far, the company has got an order to the tune of 31,000 units from overseas since its launch in October.

Meanwhile, the company plans to launch LPG variant of its best-selling hatchback Santro by the end of September.

Saxena said that similar variants of other models like Getz and Accent will be rolled out by the third quarter of the current year. Santro, powered by a 1,086cc engine, is available in CNG, diesel and petrol versions at present. (PTI)