Tata Engineering sales rise 28% in June
Mumbai: Tata Engineering has reported total sales (including exports) of 22,642 vehicles in June 2003, a 27.7-per cent rise over previous corresponding figures. Domestic sales at 21,144 units showed a growth of 26.1 per cent over 16,764 units sold last June. Cumulative sales this fiscal at 56,838 units is growing at 46.6 per cent. Domestic sales of commercial vehicles in June were up 29.7 per cent at 9,873 units. Medium and heavy commercial vehicle sales at 6,472 units grew by 28.10 per cent while light commercial vehicle sales at 3,401 units showed a growth of 32.8 per cent. Cumulative sales in the domestic market for the April-June period were up 26 per cent at 26,721 units. Tata Engineering's passenger car business registered total sales of 11,276 vehicles in the domestic market, a growth of 23.2 per cent over June 2002. The company ended the first quarter with total domestic sales of 30,122 units, a growth of 71.3 per cent. The Indica registered sales of 6,435 units in June and a cumulative sales of 18,268 units in the April-June 2003 period, growing by 53.4 per cent. The Indigo sales at 2,300 units for June enabled it to continue as the best-selling car in its segment. Cumulative sales have crossed 12,500 units in the first six months of launch. Utility vehicle sales at 2,541 units grew by 21 per cent in June and 7.5 per cent for the April-June period. The Sumo grew by 7 per cent and the Safari by 12.5 per cent in the first quarter. Exports in June were up 55.9 per cent at 1,498 units while total export for April-June rose by 78.1 per cent to 3,554 units.
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BHEL develops thermal spray process to contain silt erosion
New Delhi: Bharat Heavy Electricals Ltd (BHEL) has developed a high velocity oxy fuel (HVOF) thermal spray process for preventing silt erosion in vital components of turbines in hydel power stations. HVOF coatings were applied to Pelton turbine needles at the Shanan hydel power project and guide vanes, and the top cover and lower ring at the Bairasiul hydel power project as part of field trials conducted in 2002-03. The coated components showed negligible erosion after one monsoon, whereas the uncoated components were eroded severely. The HVOF coating has proven to be a much better technique as compared to ceramic coating and plasma nitriding, which were also experimented with at the Bairasiul project site. While there is a great potential for hydel power development in the country, particularly in the Himalayan region, hydel power project components, however, are prone to severe erosion due to the presence of silt in these water streams.
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OVL, IOC eye stake in South Ghawar gas field in Saudi
New Delhi: ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corporation (ONGC), and Indian Oil Corporation (IOCL) are in talks with the Saudi government to buy a stake in the South Ghawar gas field in Saudi Arabia. IOC chairman and managing director M S Ramachandran said IOC had recently received an invitation from the Saudi government to make a presentation on its proposal to acquire as stake in the gas field. In order to participate in the acquisition process, IOC plans to form a joint venture with OVL, where it will have a minority stake.
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Shasun slashes average effective cost of term loans to 5%
Chennai: Shasun Chemicals and Drugs Ltd has cut the average effective cost of its term loan to 5 per cent from the level of 10 per cent a year ago. This move comes after its bid to combine overseas borrowing with domestic borrowing. The average maturity of the term loans was three and a half years. The overseas component of the loan was largely from banks, and was reset every six months, said Shasun Chemicals finance director S Vimal Kumar. The recent appreciation in the value of the rupee in relation to the US dollar sparked a look at ways to bring down the borrowing cost, he added. The company derives about 68 per cent of its turnover from export, and the appreciation of the rupee has an adverse impact on its profitability. The company's annual report for 2002-03 said prepayment of high-cost debt and derivative instruments were used to bring down the effective rate of long-term debt. The annual report also mentioned that the composition of export turnover had undergone a marked change in 2002-03. Exports to the US contributed 43 per cent (30 per cent) of the turnover. The increase in exports to the US came at the expense of Asia that accounted for 26 per cent (37 per cent) of the turnover in 2002-03. Kumar said a significant increase in the export of Nizatidine (anti-ulcer drug) bolstered export to the US. The revenue from contract research and manufacturing more than doubled to about Rs 16 crore in 2002-03. Its relationship with Eli Lilly Inc was critical to the growth in contract research and manufacturing revenue.
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Jenson & Nicholson, Judis join hands for restructuring
Mumbai: Jenson & Nicholson India (J&N), a company which is hugely in debts, has tied up with financial services company Judis Moneta Financial Services Pvt Ltd to restructure its operations and finances. J&N general manager (finance) Malay Saha says Judis is expected to table a proposal in the next two weeks to J&N's lenders and the company management. "If they find the proposal effective, restructuring should start immediately." The company has a total debt burden of about Rs 200 crore, including supplier's credit, Saha said. "J&N is suffering due to its immense debt burden and consequent high-interest cost. Our efforts will now be to restructure the debt portfolio completely." The company said last year it had submitted a restructuring proposal to lenders, including Industrial Development Bank of India and Allahabad Bank, through the Calcutta High Court, but was not successful in having it accepted.
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General Motors India starts selling Chevrolet Optra
New Delhi: General Motors India has started selling the Chevrolet Optra as part of its plans to grow the company's sales to about 50,000 units in the next three years. The car, available in three models, has been priced between Rs 7.89 lakh for the base model and Rs 9.69 lakh for the top-end one. "The Optra will expand our existing portfolio and help us to further consolidate our position in the Indian automobile market. We are expecting to sell about 10,000-12,000 units of the car this year," said Aditya Vij, president and managing director, GMI. The car will compete with vehicles such as the Skoda Octavia and Toyota Corolla. India is among the only six countries in the Asia-Pacific region where the car will be launched this year. The Optra is equipped with a 1,800cc, 16-valve, DOHC, D-Tec engine, imported from Holden, Australia. It is designed on a new platform from GM Daewoo Auto & Technology (GM-DAT). The car, being manufactured at GMI's Halol plant, currently has a localisation level of 25 per cent that will subsequently be increased. Company officials, however, deny that the launch of the Optra will result in the phasing out of the Opel Astra. "Both the brands will co-exist as is the case in many regions where we follow a multi-brand strategy."
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Computer Sciences Corp plans two more centres in India
Hyderabad: Computer Sciences Corporation (CSC), a global IT services player, has finalised firmed its plans to set up two more development centres in India by the end of 2003 as part of the expanding of operations of its Indian subsidiary, CSC India Pvt Ltd. The two centres, one in Noida and the other in south India, will add to the company’s three existing centres in Indore and Noida. And CSC India’s fourth centre will be based out of Noida. The company is currently looking at South India’s three primary locations: Bangalore, Chennai and Hyderabad. CSC India has one development centre in Indore and two centres in Noida. CSC India has retained the real estate consultancy firm Jones Lange LaSalle as project management consultants to do anaylsis and recommend a location for CSC’s fifth centre. JLL is expected to give its recommendations within 15 days, following which the agency also has the mandate to locate office space for the company.
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