Saturday, September 12, 1998
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B U S I N E S S | Saturday, September 12, 1998 |
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Badal sells school idea to ICI SAS NAGAR, Sept 11 — At the ICI plant inauguration ceremony here today, Mr Parkash Singh Badal managed to persuade the top brass of the ICI to set up a school in a backward village of Punjab.
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Smallest disc drive |
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Wool
Meet-98 to be redesigned Sensex
follows global downtrend |
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Badal sells school idea to ICI SAS NAGAR, Sept 11 — At the ICI plant inauguration ceremony here today, Mr Parkash Singh Badal managed to persuade the top brass of the ICI to set up a school in a backward village of Punjab. “I am a greedy person, where Punjab is concerned,” he remarked. The ICI management agreed to set up a “small school,” but the CM wanted something bigger. He said: “Establish a school in keeping with your reputation. We will give you free land, but you run the school. Your management is better than ours.” Mr Badal invited the ICI to paint Anandpur Sahib all white before the tercentenary celebrations of the birth of the Khalsa begin. “We shall pay you for that. We are not beggars,” the Chief Minister said, having the audience in splits. Promising regular power supply, better infrastructure and efficient administration, Mr Badal said industry is coming to Punjab. Gujarat Ambuja is setting
up a cement plant at Bathinda. Mahindra and
Mahindra’s tractor plant will be set up soon.
Another tractor unit is coming up at Mohali. |
Paints plant opened SAS Nagar, Sept 11 — ICI India’s Rs 80 crore paint plant was inaugurated by Punjab Chief Minister Parkash Singh Badal here today. Addressing a press conference, the company’s MD Aditya Narayan and Chairman Ashok Ganguly said the project is the first venture by the ICI in Punjab and is the largest investment in the country. The plant, completed within a year, has an installed capacity of 20 million litres per annum. It will serve the growing demand for both decorative and automotive refinish paints in the country, especially in the northern region. The company’s sales turnover has increased from Rs 747.9 crore in 1996-97 to Rs 834.2 crore in 1997-98 showing a growth of 12 per cent. Earlier, the
company’s paints innovation centre was opened by Dr
John McAdam, Chief Executive of ICI Paints. |
Government rules out change in auto policy NEW DELHI, Sept 11 (PTI) — The government today ruled out any change in the automobile policy and blamed the industry for lack of coherence among various auto segments as a reason for its prevailing negative growth. “The prime reasons for negative growth in automobile industry are the creation of over capacity and absence of coherence among different automobile segments,” Industry Ministry Secretary T.R. Prasad said here today. Addressing the 38th annual session of the Association of Indian Automobile Manufacturers (AIAM) here, Prasad said “there is no need to complain about the auto policy as it has worked really well. “We have had a number of joint ventures in the past few years mainly due to the simplicity in the policy and delicensing of the sector,” he said. He said the only restrictions imposed on the automobile industry were those pertaining to export-import volumes and indigenisation levels. Mr Prasad said things were not as gloomy in the sector as made out to be and the ongoing recession was a global phenomenon which would taper off in a few years. Referring to the AIAM’s demand to revise the excise duty on passenger cars, Prasad said the current tariff structure was reasonable. The industry should come out with a road map of growth, he said adding there was a necessity to have continuous dialogue between the government and the automobile sector. However, AIAM did put the blame of poor performance of the industry on absence of a clear and consistent auto policy. “Even after levying a
special cess on petrol for road construction, the plan
outlay this year is only Rs 2230 crore, which would is an
insignificant part of the expected revenue from the auto
and its related industries,” the AIAM Executive
Director V.M. Raval said. |
NEW DELHI, Sept 11— Mercedes-Benz India Ltd will indigenise 70 per cent of the components used in the manufacture of the luxury German car in the country. The company hopes to achieve this target by the year 1999-2000, according to the MoU signed by Mercedes-Benz India Ltd with the Directorate General of Foreign Trade. The subsidiary of the German company has already invested $ 70.56 million as foreign equity in convertible currency till 1997-98 in the Indian venture and has already achieved 58 per cent indigenisation of components. The MoU envisages import of motor vehicle parts and components worth $ 142 million by 1999-2000 and the company hopes to achieve foreign exchange neutrality by way of equivalent export of cars by 2001-2002. Mahindra Ford Another automobile company, Mahindra Ford India Ltd also signed a MoU with the DGFT and the company too has committed to achieve 70 per cent indigenisation by 1999-2000. Mahindra Ford India Ltd has undertaken to make an equity investment of Rs 1727 crore ($ 411 million) with an equity share of Rs 1592 crore of Ford Motor Company, the foreign partner, in convertible currency. The company’s imports would result in a foreign exchange outgo of $ 110 million which would be neutralised during the next five years by way of export of cars and components. Honda Siel Honda Siel Cars India Ltd, In Auto Ltd, and Daewoo Motors India Ltd had also signed MoUs with the DGFT last month. Honda Siel plans an investment of Rs 850 crore and has sought permission to import more than $ 203 million worth of kits. The foreign exchange outgo was sought to be neutralised through export of cars and automobiles by the year 2007. Maitz Daewoo’s MoU was with
the object of importing 60,000 kits of their new model
car ‘Maitz’ which would result in foreign
exchange outgo of $ 98 million. They hope to neutralise
it during the next five years through export of
components, cars and vehicles. |
Smallest disc drive WASHINGTON (ANI): IBM has unveiled the world’s smallest and lightest disc drive, a potential boon for data storage to the digital camera and other consumer electronics accessories. The disc weighing less than an AA-battery can be useful in car-navigation to store maps, pack addresses, schedules and phone numbers in hand-held computers. Tarantella NEW DELHI (PTI): Santa Cruz Operations, the California-based information technology firm, is planing to introduce its new software application “Tarantella” in India that promises the user unlimited access to data at home from any point in the world. Bankers, journalists and corporate executives, among others, could put Tarantella to tremendous use while on their business trips abroad, says Mr R.N. Raja, the firm’s Director for South East Asia. Mainframe computer NEW DELHI (PTI): Proving the doomsayers wrong, the mainframe computer is staging a quiet come back to India, thanks to the booming electronic commerce and enterprise resources market. According to industry estimates, the mainframe market in India will grow by 60 per cent in the coming years against the 35 per cent growth predicted for the personal computer market. Cellular business NEW DELHI (PTI): Former Prime Minister H.D. Deve Gowda has asked for a thorough examination of the viability of the cellular business following operators’ demand for licence fee moratorium and large-scale equity divestment in favour of foreign partners. In a letter to Mr Atal
Behari Vajpayee, he has asked for a thorough examination
of the viability of cellular operations in India by an
independent agency like the Bureau of Industrial Prices
and Costs and a review by an inter-minsterial task force.
While on the one hand cellular operators are demanding
relief, on the other they are divesting equities in
favour of foreign partners and infrastructure funds with
government approval, he argues. |
Industrial growth declines in July NEW DELHI, Sept 11 (PTI) — After an upward swing in the first quarter of 1998-99, industrial production fell sharply in July to 1.7 per cent from 8.2 per cent a year ago. Industrial production, which grew by 5.4 per cent in April-June this year, declined sharply to a cumulative 4.0 per cent during the first four months of the current fiscal, as per latest estimates of index of industrial production (IIP). Data for July released by Central Statistical Organisation (CSO) today revealed that both manufacturing and electricity sectors fared poorly while mining sector improved on its already poor performance. Manufacturing sector, which accounts for three-fourth the total IIP weightage, grew by 3.7 per cent during April-July as compared to a 5.6 per cent growth achieved a year ago. In the first quarter the sector grew by 5.5 per cent. The all-important capital goods sector grew by 6.8 per cent in July to post a cumulative growth of 10.5 per cent. The consumer goods sector recorded a negative 0.5 per cent growth in July mainly on account of a 4.7 per cent fall in consumer durables segment, popularly known as the white goods sector. Consumer non-durables grew
by a marginal 0.7 per cent during the month under review
to post a cumulative growth of 2.5 per cent in April-July
as against a negative 1.5 per cent growth achieved in the
same period a year ago. |
Wool Meet-98 to be redesigned LUDHIANA, Sept 11 — Considering the feedback of Wool Meet-98, the International Wool Secretariat is seriously looking into redesigning or restructuring the meet to address to the business development of all concerned. “We are reorganising Wool Meet now in a way that the needs of the manufacturers, retailers and the consumers will all be purposefully catered to,” said Dr S.K. Chaudhuri, Area Director International Wool Secretariat for India and West Asia, at a meeting of manufacturers, dealers and consumers here today. According to Dr Chaudhuri, the retailers and the other trade visitors to Wool Meet-98 did not accrue much benefits because the participating manufacturers did not display their current collections, fearing imitation and duplication. This lapse not only defeated the purpose of the meet, but also made the event meaningless. Wool Meet is now designed to have three distinct parts serving the interests of the manufacturers, retailers/traders and the final consumers. In the first part of IWS will brief the manufacturers about the yarn trends and styling directions for the domestic as well as the export market in the month of February. At the end of the buying
season and on the brink of winters, IWS will organise
fashion shows and other retail and consumer campaigns for
the domestic markets, promoting wool as fashionable and
trendy. |
Sensex follows global downtrend MUMBAI, Sept 11 (PTI) — Equities registered a moderate fall at Dalal Street today on sustained squaring up by operators of their outstanding positions with the sensex shedding 25 points on the last day of the current settlement. With expectations of low badla rates at the weekend and the underlying tendency bullish, market was expected to gain further ground. Sudden drop in stocks on Wall Street and U.K. impacting the South East Asian markets and a sharp setback in almost all the major currencies, particularly Japanese yen, led by U.S. dollar, however, unnerved operators. Operators, who foresaw problems ahead of growing concerns about US President Bill Clinton’s political prospects, who is likely to face impeachment procedures, preferred to play safe by squaring up their positions, dealers said. Financial institutions, however, made modest purchases in a select few shares like BHEL, MTNL, Satyam Computer, Infosys Technologies and Guj Ambuja Cement. Foreign institutional investors (FIIS) were conspicuous by their absence that was attributed to developments in the overseas markets. The BSE sensitive moved in
a range of 3092.94 and 3061.39 before closing at 3083.56
as against yesterday’s close of 3108.67, netting a
moderate loss of 25.11 points. The BSE-100 dropped by
13.86 points to 1365.10 from previous close of 1378.96. |
Steel sector worsens NEW DELHI, Sept 11 (PTI) — The performance of the recession-hit steel sector worsened in July with production of saleable steel falling by 11.7 per cent compared to the previous year. The sharp decline in
saleable steel production has also reversed a moderate
1.2 per cent growth recorded in the first quarter of the
current fiscal year, according to Centre for Monitoring
Indian Economy (CMIE). Tata project still alive LUCKNOW, Sept 11 (PTI) — Prime Minister Atal Behari Vajpayee said today that a Cabinet sub-committee was still reviewing the Tata proposal to start a domestic airline and denied the involvement of BJP leader Pramod Mahajan in any delay in the clearance of the project. “The project has not
been cancelled,” Vajpayee told reporters at the end
of his two-day visit to Uttar Pradesh. |
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| Gold zooms NEW DELHI, Sept 11 (PTI) — Gold and silver shot up sharply on bullion market today on brisk buying by stockists influenced by a major rise in their prices on the international markets and closed with significant gains. Gold zoomed up by Rs 100 per ten gram at Rs 4325 and silver by Rs 185 per kilo at Rs 7615. The quotations: Silver .999 (ready) 7615, delivery 7630, coins buyer 10,900 and seller 11,000. Standard gold 4325, ornaments 4175 and sovereign 3525. Commodities |
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