Seminar on values opens

Inflation falls to 4.60 pc

Trade deficit widens by 28 pc

MUMBAI, April 18 (PTI) — Cumulative trade deficit of the country during the April-February 1998-99 period has risen by about 28 per cent to $ 8.2 billion from $ 6.4 billion in the same period last year, as exports are expected to decline for the first time after 1991-92.

According to the economic review by the Centre for Monitoring Indian Economy (CMIE) for March-April, data till February confirm that exports in 1998-99 are likely to remain lower at $ 33.5 billion compared to $ 34 billion in 1997-98.

Trade deficit for the year 1998-99 is estimated to rise to $ 8.5 billion from $ 6.8 billion in 1997-98.

However, the deficit for February 1999 at $ 0.3 billion was substantially lower than $ 0.8 billion in February 1998 and $ 0.5 billion in January 1999. This was due to a 10 per cent contraction in imports during the month.

During the 11 months ended February 1999, exports were down by 2 per cent against a 3 per cent increase in the same period last year.

The recovery in exports witnessed during the three months from November 1998 to January 1999 was short-lived as the growth rate dipped again by 4.5 per cent to 4 per cent in February.

In November the export growth rate had turned positive to 4 per cent from a 12 per cent decline in the previous month. It had climbed to 7 and 8 per cent respectively in December and January before falling again in February.

Export performances of seven commodities — non-basmati rice, tea, gems and jewellery, guargum meal, readymade garments, metal manufactures and handicraft — were satisfactory, recording a 20 per cent growth and accounting for 40 per cent of the total exports during the period.

During April-January 1998-99, the country’s exports to Asian countries declined by 19 per cent, CMIE said adding that India’s exports to Japan, the largest market in Asia, fell by 14 per cent during the period.

On the imports front, the total figure during 1998-99 is likely to be up by 3 per cent at $ 42 billion as compared with a 4 per cent growth in the previous financial year, according to the review.

During April-November 1998, imports grew by 9.5 per cent. However, in the subsequent three months, imports declined by 6 per cent which pulled down the overall growth to 3 per cent during April-February 1998-99.

Imports of food items went up by 50 per cent to $ 2.1 billion while gold and silver imports went up to $ 4.1 billion from $ 2.1 billion. Project goods import went up to $ 1.7 billion from $ 1.2 billion, the CMIE review added.

UCB’s deposits up in HP
Tribune News Service

SHIMLA, April 18 — The deposits of United Commercial Bank in Himachal Pradesh increased by 24 per cent during 1998-99.

While the total deposits of the zone stood at Rs 582 crore on March 31, 1999, the total advances increased to Rs 140 crore, thereby registering a growth of 36 per cent over the last year. The non-performing assets (NPA) of the zone reduced from 25 to 17 per cent as a result of vigorous recovery efforts launched by the bank during the year.

The net profit of the zone shot up by 71 per cent in 1998-99 as compared to the previous year. The non interest income also increased from Rs 2.07 crore to Rs 3.31 crore, showing an increase of 60 per cent.

The bank has set a target to increase its business by 30 per cent during 1999-2000. While two branches in Shimla town will be computerised, seven more branches in the zone will be provided with advance ledger posting machines.

The VSAT, communication will be started as soon as the facility being installed by the RBI at Hyderabad becomes operational. The bank has directed all branches in the zone to give special attention to senior citizens by offering them prompt and courteous services.

Telco to roll out mid-size car
Tribune News Service

CHANDIGARH, April 18 — After Tata Indica, Telco will now roll out a mid-size car in January, 2000.

Announcing this here today, Telco General Manager Rajiv Dube told TNS that the mid-size car, whose name is yet to be decided, will be manufactured on a new platform. It will compete with Maruti Udyog’s Esteem and Daewoo’s Cielo in pricing and features.

Mr Rajiv Dube, who handed over the keys of the 100th Indica car to Mrs Sukhjeet Walia at the local Telco dealer Hind Motors’ premises, ruled out any new Indica models or price cuts in the near future.

The delivery of Indica car had slowed down as Subros, the company that supplies air-conditioners to Telco, could not meet the demand in time. Now the problem has been sorted out. Mr Dube said Telco will meet its target of delivering 60,000 Indica cars by March next year.

In an interview with TNS he clarified general misgivings about Tata vehicles. A general complaint about Indica is its lower-end models don’t have the fifth gear.

Dube: A market survey revealed customers prefer other features at this price level to the fifth gear.

A common perception is Tata vehicles in the beginning usually have some odd features which are rectified later. So one should wait and watch.

Dube: Telco has put 3,000 Indica cars in the market and there has not been a single complaint so far. Sumo has been the fastest to record one lakh sales in the Indian automobile market. Telco sold 4,300 Safaris in the last financial year. The customer has faith in Tata vehicles. Look at the response to Indica.

It is believed the diesel engine ‘s noise level is higher and it is problematic.

Dube: Yes, compared to a petrol engine it is noisier. Indica diesel model was test -driven for 2 lakh kilometres. It gave no problems.

Indian cars cheaper than Pak’s

ISLAMABAD, April 18 (UNI) — Taking notice of the reasonable car prices in India, Nawaz Sharif has asked the industry Ministry not to allow indigenous car assemblers to unjustifiably raise prices of small vehicles.

Mr Sharif sent clippings from an Indian daily which said the price of a 1,000 cc Fiat was Rs 2,51,445 as against Rs 3,28,000 for a Suzuki Mehran 800 cc.

Mr Sharif wanted to know why car prices continued to rise and stressed that all aspects of the price structure should be looked into, including yen and dollar appreciation.

According to Dawn newspaper, Indian cars are cheaper than to Pakistan’s assembled cars.

Car prices in Pakistan quadrupled during July-January 1998-99. The market had not seen any fall despite a downward trend in the yen.

Tips for investors
Tribune News Service

CHANDIGARH, April 18 — “Be more investment savy, especially during uncertain times. Short-term speculation has more thrills but more risks as well,” said Dr J.C. Anand, an investment analyst, here today at a seminar on “Investment options for retail investment”.

The seminar was organised by Vivek Financial Focus Limited on the completion of the last year of its operations in the city.

Dr Anand outlined factors for making sound investment such as timing, industry, leadership, blue chip MNCs, and company results. Patients is the pre-requisite of safe and profitable investment.

Dr J.D. Singh, Professor at the International Institute of Management, New Delhi, said that while savings are a cultural trait in India, their investment, unfortunately, has been less planned. That is why many an ignorant investors often lose their hard-earned money.

Seminar on values opens
Tribune News Service

CHANDIGARH, April 18 — Lack of awareness of human values hampers solution of crisis. There are practical and academic difficulties in defining a value system that could cut across various strata of society, said Mr N.S. Rattan, Principal Secretary, Technical Education, Punjab at a two-day seminar on “human values and conflict resolution” organisations which began here today.

Organised by the Centre for Management Training and Research (CMTR), the seminar was being attended by heads of organisations and functionaries of industry and social sectors.

Inaugurating the seminar, Mr B.D. Khurana, Executive Director and CEO, Bharati Telenet, emphasised the need for developing appropriate human values in the context of emerging business and social scenario. Conflicts are inherent in humans and values can help resolve these.

Inflation falls to 4.60 pc

NEW DELHI, April 18 (PTI) The annual rate of inflation fell sharply by 0.44 percentage points to 4.60 per cent in the first week of 1999-2000 on cheaper non-food articles and food products.

The rate of inflation, based on wholesale price index (WPI), declined to 4.60 per cent (provisional) from 5.04 per cent (P) a week ago. Inflation had stood at 5.34 per cent during the corresponding week of the last year.

Inflation has been declining since February 27 when it was 5.26 per cent. The only exception was March 27 when it increased from 4.96 per cent to 5.04 per cent. The current decline is mainly on account of cheaper non-food articles and food products.

The index for all commodities (base: 1981-82 =100), however, increased by 0.2 per cent to 354.7 (provisional) as against 354.1 (P) in the previous week.

Meanwhile, inflation based on the final index for the week ended February 6, the latest available, stood at 5.0 per cent compared to 4.7 per cent based on the provisional index.

by Ashok Kumar

Q: Can you throw some light on the future prospects of Indo Matsushita?

— Surinder Dua, Ambala

Ans: Indo Matshushita is the largest manufacturer of electric cookers in the country and enjoys a virtual monopoly with a 90 per cent share in that segment. It sells its products under the global brand name, National. It also has fared reasonably well in the mixer-grinders segment which it launched in August 1995. On the financial front, the company has been recording fair results.

Apart from the goods that the company markets at present, it plans to introduce more products in the future. It wishes to penetrate further into the white goods market. The company enjoys good demand on the export front, and the major markets on this front are USA and Indonesia. Considering its strong brand equity and export potential, the future prospects of the company appears to be quite satisfactory.

Q: Will there be any improvement in the prospects of VST Tillers in which I hold shares?

—Onkar Joshi, Solan

Ans: Based in Bangalore, VST Tillers is engaged in the manufacture of power tillers and tractors, with the former contributing 75 per cent to the company’s income. It enjoys a collaboration with the Japanese giant, Mitsubishi, which has a 5 per cent stake in the company. The company is the market leader in the tillers segment with a share of 60 per cent. It markets its products under the brand name Mitsubishi Sakthi. The company has not been able to exploit the excellent demand of tractors on account of the cost effective indigenisation and scale of operations which have had a negative effect on its production. The company has increased its capacity of power tillers to 12,500 units. The same was resorted to in view of the rising demand. Thus, despite a lacklustre performance, the company’s prospects could look up.

Q: Would you recommend a long term investment in the shares of Vesuvius India?

— Mustafa Hajiari, Chandigarh

Ans: A part of the Vesuvius group of UK, Vesuvius India Ltd. (VIL) is a leading manufacturer of continuous castings refractories in India. CCR’s are recognised as the fastest growing refractories in the world. The parent company enjoys a 56 per cent stake in the company and is a leader in the world market, with a 70 per cent market share. It has not been all smooth sailing for VIL. Commencing production in 1994, the company weathered tough times with losses in the early years. However, the company has posted a turnaround and recorded commendable results. The company plans to introduce more value added products which could increase its profitability. Demand for CCRs is expected to increase substantially from the current 3200 tpa to 9600 by AD 2000 because of a shift towards the continuous casting process of steel making and many steel projects coming up by the turn of the century. VIL could benefit from the decreased import duty on one of its main raw materials. The overseas parent company has applied to the FIPB to increase its stake. Considering its turnaround performance and bright prospects, the long term prospects of this company appear to be fairly satisfactory. A long term investment could be considered.

Q: How would you evaluate the long term prospects of India Cements?

— Pran Kapur, Shimla

Ans: India Cements is a leading cement manufacturing company based in South India with its largest market share being in Kerala and Tamil Nadu. The company enjoys a market share of 26 per cent and 19 per cent in Kerala and Tamil Nadu respectively. On the financial front, the company’s performance has been satisfactory despite the slowdown in the cement segment. During the year that ended in March 1998, the company posted sales and net-profits of Rs 905.83 crore and Rs 56.33 crore respectively thus yielding an EPS of Rs 8.8. India Cements has been expanding its own capacities and is also acquiring other units. The company has acquired the entire share capital of Visaka Cements which has a capacity of nine lakh tonnes per annum, and it also took over CCI’s Yerraguntla plant which has a capacity of four lakh tonne per annum. Recently, it has also taken over Rassi Cement and all these acquisitions will increase its capacity to 4.80 million tonne. Overall, the prospects of the company seem encouraging, and it could fare even better provided the market conditions improve.

Q: Should I hold or sell the shares of Yokogawa Blue Star?

— Prateek Jain, Panipat

Ans: Yokogawa Blue Star Ltd (YSBL) was promoted as a joint venture between Yokogawa Electric Corporation (YEC), Japan and Blue Star India. The former has a 40 per cent stake in the company whereas the latter has a 29 per cent stake. YSBL is a prominent player in the process control industry. The company made an issue, the proceeds of which are expected to be allocated to construct new premises at Bangalore and for working capital requirement. The company also plans to launch various new products during the current year. The company benefits from the support of its promoters who are established players in their respective fields, and it is expected to record better results during the current year. One could thus hold on to this scrip.

Prakash Ind

I purchased two non-convertible debentures each of Rs 5000 vide Folio No PP 500205, allotment letter No 241 dated 14.12.96. I sent to the company discharged bonds by registered post well before the date or redemption of 15.6.98. Despite repeated reminders, I have not yet received the payment though a period of 10 months has elapsed.

Lalita Piplani
Panchkula

James Agro

I deposited Rs 5000 with James Agro Ltd and received six post dated cheques of the value of Rs 1000 (One for Rs 10000). A cheque of the value of Rs 1000 was presented for payment to Times Bank, Chandigarh. This cheque was dishonoured with the remark “funds insufficient”. I have reported the matter to James Agro Ltd, a subsidiary of James Hotels Ltd Chandigarh twice but they can’t care to reply even.

N.N. Maini
Batala

Mastergain

I made a request to Datamatic Financial Services Ltd. Plot No. A16 & 17 MIDC Pact B, Cross Lane, Marol, Andheri (E(, Bombay -400093 for revalidation of dividend warrant of UTI-Mastergain 92 of 1000 units, Folio No 8636395 on 22.9.98. I have not received the revalidated dividend warrant so far.

Beant Kaur
Ferozepore City

DIUP-93

Till date, I have not received the maturity value of my Unit Trust of India’s DIUP-93 scheme Membership No 404-1510051292 (1500 units) in spite of my repeated requests to the UTI’s offices at Dehradun, Delhi and UTI’s Registrar to the scheme (Ms/ M.N. Dastur & Co. New Delhi).

P.K. Chopra
Dehradun

US-64

I have not received US-64 dividend for the period ending June 1998. Certificate Nos are: 400970200592561 and 62,400940010042906 and 400980011018929.

Din Dyal Garg
Bathinda

by K.R. Wadhwaney
AI offers discount to govt staff

AFTER years of frustration, Air India (AI) has realised that the renaissance of the airline is possible only when it is operated on commercial lines, as done by foreign carriers. Managing Director Michael Mascranhas feels that ego of ‘Maharajah’ is subservient to the health of the airline.

In view of this concept, some glamorous routes to Frankfurt, Manchester and Rome are being suspended. “They are rewarding and profitable”, said a senior official, adding: “But flying to Muscat from Madras and operating more flights to Jeddah and Riaz are far more lucrative than flights to these European sectors”.

Cochin will handle international flights from May 25. It will be an international airport with all facilities available for incoming and outgoing passengers.

What is indeed cause for satisfaction is that there is a much better understanding between the AI and Indian Airlines (IA) now than it was a year or two earlier. Now they are at least not undercutting each other, as was the case a few years ago.

AI has started offering discount to employees of Central and State Governments public sector undertakings, nationalised banks, insurance companies, statutory and autonomous bodies and their families on various domestic routes. The facility will be available till July 15. The fares, available to travellers under travel concession rules, are about 50 per cent of airline’s normal economy class fares.

A successful move
Indian Airlines’ hourly shuttle service between Delhi and Mumbai during morning and evening peak hours to help corporate officials to undertake their assignments has been a success. It has been bringing sizeable revenue to the airlines.

Private operators have been hard hit by this strategy. One or two operators have started offering more discount. But even this has not affected the national carrier, which has been improving its service on board and also maintaining flight punctuality. This cannot be said about private operators who, in the event of cancellation or bunching of flights, do not bother to inform passengers.

The airline will soon start similar shuttle services to other important cities like, Bangalore and Chennai.

The merger of two airlines may be a long drawn out plan, but merger of operation of flights on certain profitable routes can always be undertaken. To avoid overlapping is the key to success in present situation which calls for effective market strategy.

Cricket-oriented service
With cricket world cup fever gripping the imagination of people world over, Air India will shortly have menu with cricket connotations on board the flights. Airline’s public relations and in-flight chief Jitemdra Bhargava said that he was in touch with renowned players, like, Kapil Dev, to woo passengers. “Apart from cricket-oriented service, we will provide them highlights of cricket matches of the 1999 cup”, said Mr Bhargava.