NEW DELHI, Apr 30: Reflecting their increasing commercial ties, India and Japan today held their first Economic Dialogue during which they agreed to accelerate cooperation in several infrastructure projects, including Delhi-Mumbai Industrial Corridor (DMIC) and railways.
“We discussed the entire gamut of issues in which our two countries cooperate. In particular, we agreed on how to accelerate cooperation in the flagship DMIC,” External Affairs Minister S M Krishna, who along with his Japanese counterpart Koichiro Gemba co-chaired the Dialogue, told reporters here.
He said that both the sides have also agreed to increase cooperation in railways sector and Japan would assist in chalking out a Comprehensive Master Plan for the Chennai–Bengaluru Corridor.
“We also discussed cooperation in the railways sector including the ongoing Dedicated Freight Corridor project as well as the possibility of India obtaining High Speed Rail technology from Japan,” Krishna said at a joint press meet.
India’s ambitious USD 90 billion DMIC project is aimed at creating industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor, which is under implementation. Japan is giving financial and technical aid for the project, which will cover seven states totalling 1,483 kilometers.
On the issues, Gemba said, “India and Japan will cooperate each other to achieve success in specific projects under DMIC. Both sides will work together to materialise the master plan on the infrastructure development in the areas between Chennai and Bengaluru.”
Last year, Japan has expressed intention to invest USD 4.5 billion (about Rs 23,400 crore) in the DMIC project over the next five years. (PTI)

NEW DELHI, Apr 30: In its drive to cut costs, Maruti Suzuki India is expanding the basket of raw materials sourced jointly with vendors apart from hedging forex together to avoid adverse currency movements.
The country’s largest car maker, which has already hedged 40 per cent of total exposure of 100 billion yen (over Rs 6,530 crore) together with vendors for the ongoing fiscal, is now planning to source plastics together in order to reduce costs.
“About five years back, we had started sourcing steel together with our vendors from suppliers. We have also done the same for aluminium about two years back. Now we intend to do the same with plastics,” Maruti Suzuki India (MSI) Managing Executive Officer (Supply Chain) S Maitra told.
Commenting on the need for such joint contracts with vendors, he said: “When we source raw materials independently, the suppliers quote different rates to us and another to vendors”.
After such combined sourcing, the company has been able to achieve 5-10 per cent saving on costs, he added.
“Now we are looking to take up similar approach for plastics, as a large quantity is used by us as well as our vendors. We have had talks with Reliance Industries which is the biggest supplier,” Maitra added.
Apart from the commodities, the company has also pooled in efforts to hedge yen exposure together with its vendors.
“For the fiscal 2012-13, the combined exposure of Maruti and its vendors is 100 billion yen and 40 per cent of that has been hedged,” MSI Chief Financial Officer Ajay Seth said.
He declined to disclose the rate at which it has been hedged but said: “It is much better than the current yen- dollar exchange rate”.
On the contract for steel for the next six months, Maitra said the company has started negotiations with domestic suppliers.
“The Indian steel suppliers have asked for about 5 per cent increase in the price. We are negotiating it and have not come to a final price,” he said, adding the firm is yet to start the process with foreign suppliers.
MSI and its vendors source steel from domestic firms, including Tata Steel, Essar, Hero and Bhushan. Its main overseas steel suppliers include Posco and Nippon.
Maitra also said MSI has asked its vendors to take up other cost efficiency measures in order to bring down costs.
“We have been asking them to focus on improving efficiency, optimise manpower and take up other cost saving measures so that the overall costs can be brought down by 3 to 3.5 per cent,” he said. (PTI)

NEW DELHI, Apr 30: German luxury car maker BMW Group today said it is increasing investment by over two-fold in financial services in India to Rs 530 crore this year in order to augment product and service offering in the country.
The financial services arm of the group, BMW Financial Services India, had previously announced an investment of Rs 230 crore in 2010.
“Much of this increase in investment is driven by the group’s recognition of India as an important market. This investment will help us enhance our product and service offering in India to further augment BMW India’s market leadership,” BMW Financial Services India Managing Director and Chief Executive Officer Dan DeChristopher told.
He said at present 40 per cent of the BMW products sold in India is financed.
BMW has not been reporting its sales number in India since the second half of last year due to competitive issues faced by the parent in Germany from EU authorities.
Stating that the financial services arm has made significant contribution to the group’s success in India, he said: “In less than two years, BMW Financial Services India has successfully established itself as the leading provider of customised financing solutions, individually tailored leasing plans.”
The company further said in 2012, BMW Financial Services India will employ more than 80 people at its headquarters in Gurgaon.
Commenting on the development, BMW India President Andreas Schaaf said: “The investment clearly reinforces BMW Group’s commitment to India.”
DeChristopher also said the financial services arm will also look to increase the volume of business from non-BMW branded products in India.
The financing for non-BMW branded products in India is done through another arm Alphera Finance.
“We have not focussed on this aspect before but going forward we will,” he said, adding at current the facility is available through two of the company’s dealers who also own showroom for other brands. (PTI)

NEW DELHI, Apr 30: To enable RBI to focus on its supervisory function and avoid clash between its regulatory and ownership roles, a bill was introduced in the Lok Sabha to transfer shareholding of the country’s central bank in the National Housing Bank to the Centre.
The National Housing Bank (Amendment) Bill, 2012 introduced by Finance Minister Pranab Mukherjee also seeks to transfer the registration and regulation related powers of the National Housing Bank (NHB) over housing finance companies to the RBI to ensure uniform control over non-banking financial companies.
Once the bill is passed, the NHB will concentrate on supervision and financing of such institutions.
The amendment proposes to provide for transfer of surplus by the NHB to the central government. The Centre and not the RBI will be empowered to hike the authorised capital of NHB through a notification.
After getting ownership of NHB, the government would also have a greater say in the board of the institution and the flexibility to issue directions to meet its credit objectives for the priority sector.
At present, the NHB is wholly-owned by the RBI with a paid-up capital of Rs 450 crore.
The Narasimhan Committee had recommended the transfer of RBI’s stake in State Bank of India, NABARD and NHB to the government to differentiate the central bank’s role as the owner of banks and the sector regulator.
In 2007, the government had acquired 59.73 per cent stake held by RBI in the country’s largest bank, SBI, for Rs 35,531.33 crore. NABARD stake transfer took place in 2010. (PTI)

NEW DELHI, Apr 30: Union Finance Minister Pranab Mukherjee  has unveiled the logo of the 46th annual meeting of Board of Governors of Asian Development Bank (ADB), to be held in Delhi next year.
CII is one of the partners in organising this meeting. (UNI)

NEW DELHI, Apr 30: Personal care and household goods maker Godrej Consumer Products Ltd (GCPL) today posted 41.19 per cent jump in net profit for fiscal 2011-12 to Rs 726.72 crore, while its sales crossed the USD one billion mark for the first time on the back of strong growth in India and overseas markets.
GCPL had posted consolidated net profit of Rs 514.71 crore in 2010-11.
The firm’s net sales during the year grew 31.95 per cent to Rs 4,850.94 crore, against Rs 3,676.31 crore in 2010-11, it said in a statement.
Commenting on the sales crossing the USD one billion mark, GCPL Chief Financial Officer P Ganesh said: “We have calculated this on the average dollar-rupee rate for the year.”
In the fourth quarter ended March 31, 2012, the company posted 36 per cent increase in consolidated net profit at Rs 192.65 crore, compared to Rs 141.66 crore in the same period prior fiscal.
GCPL’s net sales in fourth quarter of 2011-12 increased 30.85 per cent to 1,323.04 crore as against Rs 1,011.04 crore.
“During the quarter Indian subcontinent business, clocked yet another strong growth of 21 per cent, led by high growths across core categories,” the statement said.
International business also grew at 27 per cent organically, it added.
During the year, GCPL completed acquisition of 51 per cent stake in Darling Group operations in South Africa, Nigeria and Mozambique.
The company also acquired 60 per cent stake in Cosmetica National, leading hair colorant firm in Chile.
GCPL Chairman Adi Godrej said the results were driven by several factors, including growth in international business, innovation, quality supply chain, and professional entrepreneurial culture.
“I continue to be very confident of the opportunities for GCPL both in India and overseas. We will continue to pursue a prudent but aggressive growth strategy through a blend of organic and inorganic initiatives,” Godrej said.
GCPL’s portfolio includes brands like Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Snuggy and Protekt.
The company’s board as declared a fourth interim dividend for the year 2011-12 at the rate of Rs 1.75 per share (175 per cent on the face value of Re 1 each). (PTI)

MUMBAI, Apr 30: Public sector lender, Oriental Bank of Commerce
has revised the Base Rate downwards by 15 basis points from 10.65 per cent per annum to 10.50 per cent per annum with effect from May
14, 2012.
All categories of loans (other than the exceptions permitted by
RBI) will henceforth be priced with reference to the revised Base Rate, a release said.
(UNI)