Saturday, September 4, 1999
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B U S I N E S S | Saturday, September 4, 1999 |
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Maruti to ‘stay ahead’
of competitors NEW DELHI, Sep 3 — Market leader Maruti Udyog today claimed that it would stay ahead of the combined sales of the number two and three car manufacturers in the country for which it has embarked on a four-pronged strategy, including aggressive marketing and toning up of the organisation. She made crores, courtesy Surabhi AMBALA: With the closure of the Ambala office of Surabhi India, most of the agents have gone underground. The company was established in 1995 and has more than 150 offices all over the country. |
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 HAMBURG : Model Naomi Campbell presents her first perfume "Naomi Campbell" after the world presentation in Hamburg, northern Germany, on Thursday. The perfume was presented in a bottle designed by Thierry de Baschmakoff.— AP/PTI |
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Grasim to make ready garments TRAI
asked to scrap licence fee IOC
celebrates ‘Indian Oil Day’ HP
to float loan Three-day
settlement on NSE |
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She made crores, courtesy
Surabhi AMBALA: With the closure of the Ambala office of Surabhi India, most of the agents have gone underground. The company was established in 1995 and has more than 150 offices all over the country. The sudden disappearance of its Chairperson Usha Kiran Chaturvedi, along with her family members, including son Prem Parkash and daughter Jyoti, both Directors, and son-in-law Ashwani, Vice-Chairman of the firm, has created a scare among investors. Sources reveal Usha, who originally belonged to Ghazipur in UP, started medical practice at Patten village, near Pinjore, after the death of her husband, a teacher. She developed business relations with an investment company when the idea to start her own finance company germinated. Her daughter, Jyoti, got married to Ashwani, running a shop in photography in the village. In a short span of three years, Usha was leading a luxurious life, having a bungalow which was originally constructed as an “ashram” for the aged, maintaining three cars a Mercedes (DAQ 295), a Ford (CH01-U-4144) and Ceilo (CH01-Q-2385). She went abroad several times. Sources said the investment company collected deposits amounting to Rs 35 to 40 crore which reportedly doubled in three years. Usha set up several associated companies like Surabhi Forests (India) Ltd, Surabhi Music (India) Ltd, Surabhi Agro-Tech Ltd, Pawan Agro Food Ltd, Hotel Surabhi Paradise, Surabhi India Trust, Surabhi Education, Surabhi Estates Ltd, Surabhi Media Ltd, Surabhi Punj Plast Ltd and D.P. Polyphab Ltd. Unable to realise a loan of Rs 11.5 crore, the Haryana Financial Corporation recently sealed the Surabhi Agro-Tech Ltd office at Panchkula. Nahar Singh, CMD of the investment company, has promised to make payments to Ambala investors who knocked at the doors at the company’s Manimajra head office. The SP, Panchkula, when
contacted on the telephone, said the search for the
missing culprits is on. |
Maruti to ‘stay ahead’ of competitors NEW DELHI, Sep 3 (PTI) — Market leader Maruti Udyog (MUL) today claimed that it would stay ahead of the combined sales of the number two and three car manufacturers in the country for which it has embarked on a four-pronged strategy, including aggressive marketing and toning up of the organisation. “Maruti Udyog will continue to be number one car producer in the country and our market share will be more than the combined share of the number two and three players,” MUL Managing Director Jagdish Khattar told PTI in an interview. MUL will maintain its lead in every segment of the car market, including the Zen segment, where competitor Hyundai has made a significant presence in less than a year of operation, he said. When reminded that Hyundai sold about 7,000 units of Santro as against 7,900 units of Zen during August, Khattar said: “In this segment we will maintain our leadership position.” To augment MUL’s market share the company has formulated a strategy, which is being executed to ensure that new models were rolled out as per schedule. He, however, declined to give details on the time and pricing of the new models but did not rule out introduction of a new model in the remaining four months of the 20th century. Khattar said that the introduction of new models, expanding dealer base, development of its vendors and sensitising the organisation to future needs were the main planks of his strategy to enter the new millennium. Asked about the threat perceptions from the host of new cars, including Santro, Matiz (Daewoo Motors) and Indica (Tatas), “Why should we feel threatened? We are coming out with our own models”. He parried the question on which car and company could be the most serious threat or challenge to Maruti saying that “we take every one of our competitor seriously”. Khattar said that his strategy would be on volume business and that he was prepared to sacrifice profits for the purpose. “We are looking at volumes and there has to be a trade-off between volumes and profits,” he emphasised. Khattar, who took over as the chief executive of the Rs 8,500 crore car giant last month from R S S L N Bhaskarudu, said that MUL had started working on new models in August last year. Asked on indigenisation of content in the wake of earlier criticism that transfer of technology from MUL’s Japanese partner Suzuki Motor Corporation (SMC) was delayed, Khattar said: Our effort will be on maximisation of localisation as early as possible”. “It is in our own
interest to cut down the costs. But it should also be
remembered that 100 per cent localisation is also not
practical due to economy of scales.” |
Diesel Esteem in December NEW DELHI, Sept 3 (UNI) — A not-so-inspiring response to its diesel Zen notwithstanding, Maruti Udyog is all set to introduce diesel Esteem in December this year. Besides, upgrades of the existing Esteem LX, and AX models are also being readied for introduction by December, company sources told UNI here. In addition, the Euro-II compliant version of the car, sporting a four-valve multi-point fuel injection (MPFI), would hit the streets in January, the sources added. The final price tags of all vehicles are yet to be decided. However, the company, when contacted, refused to comment. Maruti, the sources, said, has decided to use Esteem LX as the base model for the diesel version. Though the car would sport the same Peugeot TUDs engine which powers the Zen diesel, the company is to decide on the price tag for the vehicle. It is to be seen whether a similar price gap would be maintained as was the case in Zen diesel. The high price difference was a conscious effort by the company to position the model in a different segment. “If the price gap between the petrol and diesel versions not too big, then there are chances that the diesel variant might eat into the petrol market and we did not want that to happen”. The Esteem VX and AX
upgrades, to be introduced in October, will boast of
additional features like driver seat height adjuster,
rear seat arm rest, chrome grill and a cigarette lighter.
The upgraded version of Esteem LX, to be launched in
December, would feature central locking, front power
windows and chrome grill. |
Grasim to make ready garments CALCUTTA, Sept 3 (UNI) — The Rs 4325 crore Grasim Industries Limited, makers of Gwalior, Graviera and Grasim suiting, has chalked out a three-fold strategy to take on the increasing unorganised sector manufacturers and smaller brands that have made a severe dent in its profitability. As part of this strategy, the company is planning to strengthen its distribution network through better management of existing 185 showrooms and substantial increase in its number over the next few years. The company is also planning to move up value chain by introducing readymade garments to efficiently utilise its excellent brand equity and strong distribution network. Chairman Kumar Mangalam Birla said the company intends to sharpen its focus on the premium end of the suiting fabrics market, given the fiscal advantages and resultant competition from the unorganised sector in the lower end of the market. The company will focus on three businesses: cement, fibres and textiles with the former being the platform to build shareholder value in future. The unorganised sector now accounts for over two-third of the suiting fabrics market in the country and its unprecedented growth and a discriminatory excise duty structure in favour of independent process houses is likely to exert pressure on composite mills like Grasim in future, industry sources said. Introduction of new
value-added products is another focus area for Grasim to
attain twin objectives of widening its product range and
moving towards the high end of the suiting fabrics market
which gives better realisation. |
TRAI asked to scrap licence fee MUMBAI, Sept 3 (PTI) — E-mail service providers (ESPs) today opposed the licence fee terms proposed by the Telecom Regulatory Authority of India (TRAI) and claimed that there was no level-playing field for them vis-a-vis the Internet Service Providers (ISPs). At a meeting with TRAI here, the ESPs argued that in the case of a zero licence fee there would be a tremendous reduction in e-mail tariffs. They also questioned the necessity of providing separate licences for the ESPs when e-mails can be sent through Internet as well. Arguing their case before TRAI, they pointed out that licence fee has been waived for the ISPs up to October 31, 2003 and thereafter a licence fee of Re one per annum will be payable from the next day. However, the proposal of the Ministry of Communications and the Department of Telecommunications seeks to charge from the ESPs licence fee from the sixth year of starting operations for four years. Currently, e-mail
licences are for five years extendable by two years at a
time which is proposed to be increased to four years
while ISPs licences are for 15 years extendable by five
years or more at a time. |
IOC celebrates ‘Indian
Oil Day’ CHANDIGARH, Sept 3 — Indian Oil Corporation, the only Fortune 500 company of India, celebrated its 35th “Indian Oil Day” on Wednesday. Employees of Indian Oil pledged to cultivate high standards of business ethics and achieve international standards of excellence. A function was held at the Institution of Engineers, in Sector 19. All the retired and serving employees participated along with their families. Mr A.M Nagar, DGM, Punjab State Office, Indian Oil, Chandigarh, highlighted the performance standards and challenges lying ahead for Indian Oil in view of the liberalised scenario in the oil sector. Mr S.D. Bhambri, General
Manager of The Tribune group of publications, who is a
former GM of Indian Oil, attended the function. Long
service awards were given to employees. Children of
employees presented a cultural programme. |
HP to float loan SHIMLA Sept 3 — The Himachal Government has decided to float a loan of Rs 77.95 crore for financing development programmes of the State. The loan, which is being floated with the approval of the Government of India, will bear interest at the rate of 11.85 per cent payable on half yearly basis on March 8 and September 8 every year. Subscription for the
loan will be received until September 8 in multiples of
Rs 1000 at offices of the RBI. The issue price of the
loan will be Rs 1000 for every Rs 1000 (Nominal) of the
loan and will be repaid at par on September 8, 2009. |
Three-day settlement on NSE MUMBAI, Sept 3 (ANI) — The National Stock Exchange said today that it would begin a three-day settlement cycle beginning Monday in addition to its weekly settlement. An exchange communique said that in the new settlement, only the shares which are mandatorily traded in dematerialised form, will be permitted to trade. Dematerialisation refers to holding shares in a depository and trades being notified through electronics trade. Shares of 360 companies are traded in dematerialised form by institutional investors and 104 by retail investors. “The market is in a
transition from account period trading cycle to
compulsory rolling settlements. Members have expressed a
view that the switchover to rolling settlements will be
facilitated by an interim measure of an additional
shorter settlement cycle,” NSE said in the
statement. |
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