Star middle-order batsman Yuvraj Singh has fallen to the eighth spot in ODI batting following his miserable show in the recent cricket tri-series in Malaysia.
Yuvraj, who lost his top spot last week to Australian Andrew Symonds, is the only Indian in the top 10 in the Maruti Suzuki Cricket Ratings released by ESPN STAR Sports today.
Sanath Jayasuriya moved to No. 1 on the strength of some fabulous batting performances against England and Bangladesh while Australia continued its monopoly on the top spot in both ODI and Test team rankings.
Jayasuriya (134 points) left Michael Hussey (129) and team-mate Mahela Jayawardene (127 points) in the 2nd and 3rd spot respectively in 0DI batting followed by Ramnaresh Sarwan (125 points), Younis Khan (124 points) and Upul Tharanga (122 points). England's Ian Bell (120 points) was the new entrant this week at seventh spot.
Yuvraj (119 points) fell to the eighth spot followed by Mohammad Yousuf (118 points) and Kumar Sangakarra (116 points).
In Test batting, Mohammad Yousuf (170 points) is very closely followed by Sri Lankan Skipper Mahela Jayawardane (166 points), whose match winning knocks against South Africa puts him on the second spot in Test Batting.
Australian captain Ricky Ponting (161 points), Indian Skipper Rahul Dravid (158 points) and Pakistan Vice Captain Younis Khan (154 points) followed in the third, fourth and fifth place respectively.
Friday, September 29, 2006
Maruti Udyog sees exports on a flat track
This should come as a surprise to many. A few days after parent company Suzuki Motor Corporation (SMC) pledged manifold export growth to touch the four-lakh car figure from India by 2010, Maruti Udyog said on Wednesday its export growth for the current fiscal at least is expected to remain flat.
Last fiscal, the domestic market leader exported just over six per cent of its total production at 34,781 vehicles. The carmaker does not expect much change in this number in 2006-07.
Says Mayak Pareek, chief general manager (marketing) “we have stopped exporting Alto and some other cars to Europe recently and this is why export numbers are not looking up this fiscal. The European market will be serviced by Suzuki’s plant in Hungary.”
He said Maruti was keen to fulfill its domestic commitments on a priority basis. With demand far outstripping supply in the domestic market, export growth is obviously suffering.
Take a look at the numbers. In July this year, exports of MUL were down 58% to 1,755 units (4,200 units). The decline continued in August when the numbers were down 25% at 3,596 vehicles (4,792).
Asked about reports that the company was considering a steep cut in prices of its bread and butter model M800 to compete with the Tata one lakh car two years down the line, Pareek said “how can we cut prices? Just look at the way input costs have been rising. The Tata car will compete with two-wheelers, not with M800.”
The company is expected to close the first six months of this fiscal with 18% sales growth. It closed the April-September period last year with sales of 2,62,406 units.
Last fiscal, the domestic market leader exported just over six per cent of its total production at 34,781 vehicles. The carmaker does not expect much change in this number in 2006-07.
Says Mayak Pareek, chief general manager (marketing) “we have stopped exporting Alto and some other cars to Europe recently and this is why export numbers are not looking up this fiscal. The European market will be serviced by Suzuki’s plant in Hungary.”
He said Maruti was keen to fulfill its domestic commitments on a priority basis. With demand far outstripping supply in the domestic market, export growth is obviously suffering.
Take a look at the numbers. In July this year, exports of MUL were down 58% to 1,755 units (4,200 units). The decline continued in August when the numbers were down 25% at 3,596 vehicles (4,792).
Asked about reports that the company was considering a steep cut in prices of its bread and butter model M800 to compete with the Tata one lakh car two years down the line, Pareek said “how can we cut prices? Just look at the way input costs have been rising. The Tata car will compete with two-wheelers, not with M800.”
The company is expected to close the first six months of this fiscal with 18% sales growth. It closed the April-September period last year with sales of 2,62,406 units.
Wednesday, September 27, 2006
India: Small Cars Are on a Roll
Small is beautiful when it comes to India's car market. Though India's auto industry is nowhere near as developed as China's, investment is starting to pour into the small-car segment. Global auto companies such as Hyundai (HYMZY) and Honda (HMC) and local ones such as Tata Motors and Maruti Udyog (MUDGF), a subsidiary of Japan's Suzuki Motor, are rushing forward with plans to launch small car models they hope will click with India's emerging middle class.
Small cars already account for 70% of India's total one-million-car yearly market—a figure that is expected to double in the next four years. Around a dozen new small and compact cars, with engine capacities ranging from 1,000 cc to 1,500 cc, are expected to hit the market in the next two years in gasoline, diesel, and hybrid-engine models. India's long-range potential could be impressive. A study by consulting firms Booz-Allen Hamilton and McKinsey predicts that India's domestic car market will cross 3.5 million by 2015.
Small cars already account for 70% of India's total one-million-car yearly market—a figure that is expected to double in the next four years. Around a dozen new small and compact cars, with engine capacities ranging from 1,000 cc to 1,500 cc, are expected to hit the market in the next two years in gasoline, diesel, and hybrid-engine models. India's long-range potential could be impressive. A study by consulting firms Booz-Allen Hamilton and McKinsey predicts that India's domestic car market will cross 3.5 million by 2015.
Sunday, September 24, 2006
Raid-de-Himalaya registers record entries
A record 100 motorsport enthusiasts would take part in the 8th edition of the Maruti Suzuki Raid-de-Himalaya, which will run from September 30 to October 7.
Of the enrolment, 30 are in X-treme category (for professionals), 34 in reliability (for amateurs) and 36 in the two-wheeler section. There will be six women teams in the competition as well.
The rally, which will be flagged of from Shimla, will travel through Manali, Kaza, Dhankar, Gramphoo, Patseo and Leh, before ending in Manali.
The prize money has been doubled
The prize money for this year's Maruti Suzuki Raid-de-Himalaya has been doubled to Rs six lakh, a press release said here yesterday.
Rallyists will cover over 300 km in a day and will pass through some areas where the temperature dips below minus 20 degree celsius.
For the first time, the race will pass along Pangong Tso, a huge water body on the Indo-China border, 200 km north of Leh.
In all, the competitors will cover 2,139 km across six of the world's highest mountain passes at over 5,500m.
Friday, September 22, 2006
Raid-de-Himalaya Re-loaded
IT’S back. Maruti Suzuki has announced the launch of the 8th edition of Maruti Suzuki Raid-de-Himalaya starting from September 30 to October 7, 2006. This year has a record enrollment with 100 motorsport enthusiasts participating across the three categories - 30 in X-treme (for professionals), 34 in Reliability (for amateurs) and 36 in the two-wheelers category.
After the flag-off from Shimla on September 30, the Raid-de-Himalaya will traverse through Manali, Kaza, Dhankar, Gramphoo, Patseo and Leh and will finally culminate in Manali on October 7. This year the total prize money for the event has been doubled to Rs 6 lakhs. Rallyists will cover over 300 kms of grueling mountainous route in a day - another first for rallying of any kind. It will pass through some areas where temperature dips below minus 20 degrees Celsius.
For the first time, the Maruti Suzuki Raid-de-Himalaya will pass along Pangong Tso, a huge water body on the Indo-China border, 200 Kms north of Leh. In all, it will cover 2139 kms across 6 of the world’s highest mountains passes at over 5500 meters, in eight days. The raid will also see participation by six women teams. Three of them are taking the tougher ‘X-treme’ category challenge. All participating vehicles are prepared as per MAI specifications.
The Raid-de-Himalaya is India’s longest, highest and most strenuous motorsport rally that thoroughly tests the endurance and robustness of the man and the machine. It is the only event that runs in both states of Jammu & Kashmir as well as Himachal Pradesh.
After the flag-off from Shimla on September 30, the Raid-de-Himalaya will traverse through Manali, Kaza, Dhankar, Gramphoo, Patseo and Leh and will finally culminate in Manali on October 7. This year the total prize money for the event has been doubled to Rs 6 lakhs. Rallyists will cover over 300 kms of grueling mountainous route in a day - another first for rallying of any kind. It will pass through some areas where temperature dips below minus 20 degrees Celsius.
For the first time, the Maruti Suzuki Raid-de-Himalaya will pass along Pangong Tso, a huge water body on the Indo-China border, 200 Kms north of Leh. In all, it will cover 2139 kms across 6 of the world’s highest mountains passes at over 5500 meters, in eight days. The raid will also see participation by six women teams. Three of them are taking the tougher ‘X-treme’ category challenge. All participating vehicles are prepared as per MAI specifications.
The Raid-de-Himalaya is India’s longest, highest and most strenuous motorsport rally that thoroughly tests the endurance and robustness of the man and the machine. It is the only event that runs in both states of Jammu & Kashmir as well as Himachal Pradesh.
Thursday, September 21, 2006
Maruti to roll out Nissan`s model in 2008-09
Maruti Udyog announced that it would start rolling out the export model for Japanese car maker, Nissan in 2008-09 as part of the agreement its parent, Suzuki entered with the latter for contract manufacturing in India.
Japanese automobile majors, Nissan and Suzuki have submitted a long wishlist, including a 10-year corporate tax holiday, duty-free imports, a VAT holiday and stamp duty exemption, for the Rs 25 billion plant they plan to jointly set up in India.
Maruti wanted India as the export hub also for its compact cars. The company estimates export of four lakh from its own stable.
Maruti Udyog is expected to launch two new models later this fiscal. The company sold 5,27,038 units in the domestic market last fiscal at a growth rate of 8.1%. Including exports, the growth in 2005-06 was 4.8% at 5,61,822 units.
Japanese automobile majors, Nissan and Suzuki have submitted a long wishlist, including a 10-year corporate tax holiday, duty-free imports, a VAT holiday and stamp duty exemption, for the Rs 25 billion plant they plan to jointly set up in India.
Maruti wanted India as the export hub also for its compact cars. The company estimates export of four lakh from its own stable.
Maruti Udyog is expected to launch two new models later this fiscal. The company sold 5,27,038 units in the domestic market last fiscal at a growth rate of 8.1%. Including exports, the growth in 2005-06 was 4.8% at 5,61,822 units.
Maruti Udyog Ltd (MUL) aims 4 lakh exports
Maruti Udyog Ltd (MUL), county's largest car producer, is planning to export close to 3.5 to 4 lakh cars from its Gurgaon plant by 07-08.
Exports will be under the Nissan brand as well as the Suzuki brand catering to the Japanese parent's markets in the European and non-European countries, Maruti Udyog managing director Jagdish Khattar said.
Maruti will also meet Suzuki's diesel engine need in countries like Hungary, Indonesia and China from the domestic engine capacity that is being set up, Khattar said.
MUL, meanwhile, as no plans to cut prices of its people's car, Maruti 800 and position it as a competitor to the Tata's much talked about small-car which also goes by the name of the "Rs 1-lakh car" slated to hit the road next year.
For Khattar isn't bothered about the treat to its ever popular car that sales for Rs 1.9 lakh from something that may retail at around Rs 1 lakh. "There are no plans to reduce Maruti 800's prices. Given a chance we will raise its prices considering the impact on its demand," Khattar said.
Replying to queries on how Maruti is gearing up to the treat, Khattar said, “We at Maruti are concerned more with the ownership costs of the cars rather than the purchase prices.”
Exports will be under the Nissan brand as well as the Suzuki brand catering to the Japanese parent's markets in the European and non-European countries, Maruti Udyog managing director Jagdish Khattar said.
Maruti will also meet Suzuki's diesel engine need in countries like Hungary, Indonesia and China from the domestic engine capacity that is being set up, Khattar said.
MUL, meanwhile, as no plans to cut prices of its people's car, Maruti 800 and position it as a competitor to the Tata's much talked about small-car which also goes by the name of the "Rs 1-lakh car" slated to hit the road next year.
For Khattar isn't bothered about the treat to its ever popular car that sales for Rs 1.9 lakh from something that may retail at around Rs 1 lakh. "There are no plans to reduce Maruti 800's prices. Given a chance we will raise its prices considering the impact on its demand," Khattar said.
Replying to queries on how Maruti is gearing up to the treat, Khattar said, “We at Maruti are concerned more with the ownership costs of the cars rather than the purchase prices.”
Wednesday, September 20, 2006
Maruti Udyog to launch two new models this fiscal
Maruti Udyog Ltd is expected to launch two new models later this fiscal.
Mayank Pareek, Chief General Manager (Marketing) of Maruti Udyog said, `We expect sales to be up by 18 percent in the April to September period.`
The company sold 5,27,038 units in the domestic market last fiscal at a growth rate of 8.1%. Including exports, the growth in 2005-06 was 4.8% at 5,61,822 units.
Suzuki Chief Osamu Suzuki, recently on a visit to India, had said that the company expects total sales (including exports) would grow by 12% this fiscal at 6,30,000 units. Maruti is expected to launch two new models later this fiscal. This includes an all-new model of its compact car, Zen as well as a 1.3-litre diesel variant of its premium hatchback, Swift.
Pareek also said that Maruti`s exports were likely to remain flat this fiscal, following Suzuki`s decision to serve the European market through its facility in Hungary instead of the Alto from India.
Mayank Pareek, Chief General Manager (Marketing) of Maruti Udyog said, `We expect sales to be up by 18 percent in the April to September period.`
The company sold 5,27,038 units in the domestic market last fiscal at a growth rate of 8.1%. Including exports, the growth in 2005-06 was 4.8% at 5,61,822 units.
Suzuki Chief Osamu Suzuki, recently on a visit to India, had said that the company expects total sales (including exports) would grow by 12% this fiscal at 6,30,000 units. Maruti is expected to launch two new models later this fiscal. This includes an all-new model of its compact car, Zen as well as a 1.3-litre diesel variant of its premium hatchback, Swift.
Pareek also said that Maruti`s exports were likely to remain flat this fiscal, following Suzuki`s decision to serve the European market through its facility in Hungary instead of the Alto from India.
Maruti H1 sales to be up 18%: Official
New Delhi, Sept 20: Maruti Udyog Ltd today said sales were expected to rise 18 per cent in the first half of this fiscal in the domestic market.
"We expect sales to be up by 18 per cent in the April to September period," Maruti Udyog Chief General Manager (Marketing) Mayank Pareek said.
The company sold a total of 5,27,038 units in the domestic market last fiscal at a growth of 8.1 per cent. Including exports, the growth in 2005-06 was 4.8 per cent at 5,61,822 units.
Suzuki chief Osamu Suzuki, recently on a visit to India, had said that the company expects total sales (including exports) to grow by 12 per cent this fiscal at 6,30,000 units.
Maruti, 54.2 per cent owned by Suzuki, is expected to launch two new models later this fiscal. This includes an all new model of its compact car Zen as well as a 1.3-litre diesel variant of its premium hatchback Swift.
Pareek said exports for Maruti were "likely to remain flat this fiscal, following Suzuki's decision to serve the European market through its facility in Hungary instead of the Alto from India.
"We expect sales to be up by 18 per cent in the April to September period," Maruti Udyog Chief General Manager (Marketing) Mayank Pareek said.
The company sold a total of 5,27,038 units in the domestic market last fiscal at a growth of 8.1 per cent. Including exports, the growth in 2005-06 was 4.8 per cent at 5,61,822 units.
Suzuki chief Osamu Suzuki, recently on a visit to India, had said that the company expects total sales (including exports) to grow by 12 per cent this fiscal at 6,30,000 units.
Maruti, 54.2 per cent owned by Suzuki, is expected to launch two new models later this fiscal. This includes an all new model of its compact car Zen as well as a 1.3-litre diesel variant of its premium hatchback Swift.
Pareek said exports for Maruti were "likely to remain flat this fiscal, following Suzuki's decision to serve the European market through its facility in Hungary instead of the Alto from India.
Saturday, September 16, 2006
Horses on diesel
A rash of diesel engine manufacturing plants promises a change in the way cars will be powered in India in the coming years.
It is not uncommon these days to see swanky Mercs and Skoda Octavias queue up besides trucks and taxis at the dirty end of a fuelling stations: the diesel pump. Gone are the times when a diesel-powered vehicle could be identified by the fumes and the bone-rattling driving experience. Diesel is the new age alternate fuel, a more practical and immediate technology especially when compared to fuel cells and hydrogen both in infant stages of development.
Maruti Udyog Ltd is spending up to Rs 2,500 crore in setting up a 300,000 unit per annum diesel engine assembly unit in Manesar. The first phase of one lakh units would go operational next month.
It is not uncommon these days to see swanky Mercs and Skoda Octavias queue up besides trucks and taxis at the dirty end of a fuelling stations: the diesel pump. Gone are the times when a diesel-powered vehicle could be identified by the fumes and the bone-rattling driving experience. Diesel is the new age alternate fuel, a more practical and immediate technology especially when compared to fuel cells and hydrogen both in infant stages of development.
Maruti Udyog Ltd is spending up to Rs 2,500 crore in setting up a 300,000 unit per annum diesel engine assembly unit in Manesar. The first phase of one lakh units would go operational next month.
Friday, September 15, 2006
Maruti and Nissan to manufacture small car in India
Maruti and Nissan have announced that they were negotiating a joint project to manufacture a compact pick-up van and a small car in India, reports Business Standard.
Japanese automobile majors Nissan and Suzuki have submitted a long wishlist, including a 10-year corporate tax holiday, duty-free imports, a VAT holiday and stamp duty exemption, for the Rs 25 billion plant they plan to jointly set up in India.
In addition to the tax write-offs, the companies have sought cheaper electricity, gas and water. They have said the price of power in India is among the highest in South East Asia. They also want a stable industrial water supply and the laying of a liquefied natural gas pipeline as soon as possible.
The other demands made to the central and state governments include an upgrade of transport infrastructure from their plant to ports, streamlined border inspection, abolition of traffic restrictions on heavy vehicles in cities and development of ports. They also sought support to improve the living conditions of expatriate Japanese employees.
Japanese automobile majors Nissan and Suzuki have submitted a long wishlist, including a 10-year corporate tax holiday, duty-free imports, a VAT holiday and stamp duty exemption, for the Rs 25 billion plant they plan to jointly set up in India.
In addition to the tax write-offs, the companies have sought cheaper electricity, gas and water. They have said the price of power in India is among the highest in South East Asia. They also want a stable industrial water supply and the laying of a liquefied natural gas pipeline as soon as possible.
The other demands made to the central and state governments include an upgrade of transport infrastructure from their plant to ports, streamlined border inspection, abolition of traffic restrictions on heavy vehicles in cities and development of ports. They also sought support to improve the living conditions of expatriate Japanese employees.
Maruti Udyog stops Alto exports to Europe
Maruti Udyog has stopped exports of its largest selling car, Alto to Europe after its parent, Suzuki starting to export Swift from its Hungarian plant to other European countries.
Sources in Maruti told Business Line that steady decline in exports was mainly because Alto constituted nearly 80 per cent of its total exports. Exports fell 17 per cent in the April-August 2006 period to 13,195 units only. Maruti is now trying to increase exports to non-European countries in West Asia, Latin America and even to Sri Lanka.
The decision to source Swift from the Hungarian plant was taken because of its proximity to other European countries. Apart from Hungary, Swift is manufactured in India, China and Japan. Maruti is now looking at replacing Alto with another compact car, which will be exclusively for exports.
Early this year, Suzuki and Nissan announced a deal which envisages supply of 50,000 cars of a new small car by Maruti Udyog from April 1, 2008, which will be exported to Europe under the Nissan brand.
The new car will be manufactured at Manesar in Haryana where production will commence from December. Maruti will on its own export 1 lakh units of the new small car mainly to Europe and around 50,000 vehicles will be sold domestically.
The total exports by 2009 are expected to go up to around 4 lakh cars annually. Sources said that because of higher fuel prices, customers in the European countries are looking at fuel-efficient small cars and, hence, there has been a major demand for such cars.
Maruti has already announced that around Rs 4,000 crore will be invested in its existing plant in Gurgoan and around Rs 5,000 crore will be invested in a diesel engine plant and production of a new small car.
The new plant will produce 1 lakh Swift cars, and 2 lakh new small cars.
Maruti expects to sell 6.3 lakh cars during the current financial year compared with 5.27 lakh cars in the previous year. During the same year, it exported 35,000 cars.
Wednesday, September 13, 2006
Suzuki asks for Indian government incentives for $730m Maruti-Nissan JV
Suzuki has approached the Indian government demanding special treatment for its proposed joint venture MUL car manufacturing with Nissan, describing it as the biggest export project in India, planned to export over 340,000 cars valued at over $3bn annually, a company official has told the country’s Economic Times. The venture plans to build two new plants, adding to an existing 600,000-capacity plant.
Investment costs include upgrading transport infrastructure from plants to port, development of exports ports including new port construction and portside vehicle storage area.
Tax incentives sought by Suzuki, majority owner of Maruti Udyog, India’s biggest car manufacturer, include corporate tax exemption for 10 years and duty exemption on imported parts materials and equipment, VAT and stamp duty concessions, financial support for the installation of utilities, and the assurance of stable industrial water and LNG supplies.
Nissan and Suzuki agreed in June this year to broaden the scope of their collaboration to include the joint use of their manufacturing facilities in emerging markets. In India. Suzuki will build a new small car in India to supply to Nissan, starting from end 2008.
(Economic Times of India, 13 September)
Investment costs include upgrading transport infrastructure from plants to port, development of exports ports including new port construction and portside vehicle storage area.
Tax incentives sought by Suzuki, majority owner of Maruti Udyog, India’s biggest car manufacturer, include corporate tax exemption for 10 years and duty exemption on imported parts materials and equipment, VAT and stamp duty concessions, financial support for the installation of utilities, and the assurance of stable industrial water and LNG supplies.
Nissan and Suzuki agreed in June this year to broaden the scope of their collaboration to include the joint use of their manufacturing facilities in emerging markets. In India. Suzuki will build a new small car in India to supply to Nissan, starting from end 2008.
(Economic Times of India, 13 September)
Tuesday, September 12, 2006
Maruti Udyog: Racing ahead
With substantial capex plans, Maruti Udyog is revving up to take on competition head on.
Maruti Udyog has upped its capital expenditure by Rs 3,000 crore to Rs 9,000 crore to be completed by 2010.
The additional funds will be spent on enhancing the car capacity at its new engine and transmission plant in Manesar from 1 lakh to 3 lakh units a year by FY08.
In the next five years, Maruti is planning around five new models in addition to variants and upgrades. And, in about four years, its production capacity will almost double.
The Indian passenger car market should grow at around 10 per cent a year, given the strong consumption demand.
Thus, the diesel engine for its Swift model will help Maruti compete with other diesel cars in the market, especially now that Tata Motors has tied up with Fiat for the same diesel technology.
However, the diesel Swift may partly cannibalise sales of the petrol Swift. Moreover, the competitive environment for small cars is becoming somewhat difficult with Toyota and Honda talking of small cars too.
The additional capacity being built for exports to Nissan and Suzuki would help Maruti scale up its operations and make tremendous strategic sense, given its expertise in making small cars.
Indeed the export potential is huge and assured offtake from a big player like Nissan cannot but be a plus point.
While the additional capex will mean some pressure on cash flows, most of it will be financed through internal accruals, revenues from the additional investments should flow in sometime after FY08.
With positive news flow, the stock has been a big outperformer, gaining 15 per cent in the last month compared with the Sensex move of just 3 per cent.
At the current price of Rs 917, the stock, excluding Rs 88 worth of cash, trades at nearly 21 times estimated FY08 core earnings. That is somewhat expensive unless investors are willing to wait for a while to see returns.
Maruti Udyog has upped its capital expenditure by Rs 3,000 crore to Rs 9,000 crore to be completed by 2010.
The additional funds will be spent on enhancing the car capacity at its new engine and transmission plant in Manesar from 1 lakh to 3 lakh units a year by FY08.
In the next five years, Maruti is planning around five new models in addition to variants and upgrades. And, in about four years, its production capacity will almost double.
The Indian passenger car market should grow at around 10 per cent a year, given the strong consumption demand.
Thus, the diesel engine for its Swift model will help Maruti compete with other diesel cars in the market, especially now that Tata Motors has tied up with Fiat for the same diesel technology.
However, the diesel Swift may partly cannibalise sales of the petrol Swift. Moreover, the competitive environment for small cars is becoming somewhat difficult with Toyota and Honda talking of small cars too.
The additional capacity being built for exports to Nissan and Suzuki would help Maruti scale up its operations and make tremendous strategic sense, given its expertise in making small cars.
Indeed the export potential is huge and assured offtake from a big player like Nissan cannot but be a plus point.
While the additional capex will mean some pressure on cash flows, most of it will be financed through internal accruals, revenues from the additional investments should flow in sometime after FY08.
With positive news flow, the stock has been a big outperformer, gaining 15 per cent in the last month compared with the Sensex move of just 3 per cent.
At the current price of Rs 917, the stock, excluding Rs 88 worth of cash, trades at nearly 21 times estimated FY08 core earnings. That is somewhat expensive unless investors are willing to wait for a while to see returns.
Maruti hikes capex by Rs 30 bn
Maruti Udyog increased its capital expenditure by Rs 30 billion to Rs 90 billion to be completed by 2010.
The additional funds will be spent to enhance the car capacity at its new engine and transmission plant in Manesar from 1 lakh to 3 lakh units a year by FY 2008.
The company, in the next five years, is looking for five new models in addition to variants and upgrades along with doubling of production capacity within four years.
Since the Indian passenger car market is expected to grow at around 10% a year, given the strong consumption demand, the diesel engine for its Swift model will help Maruti compete with other diesel cars in the market.
With domestic market, the additional capacity being built for exports to Nissan and Suzuki would help Maruti scale up its operations and make tremendous strategic sense, given its expertise in making small cars.
However, it has been reported that this additional capex will lead to some pressure on cash flows, most of the capex will be financed through internal accruals, revenues from the additional investments should flow in sometime after FY 2008.
The additional funds will be spent to enhance the car capacity at its new engine and transmission plant in Manesar from 1 lakh to 3 lakh units a year by FY 2008.
The company, in the next five years, is looking for five new models in addition to variants and upgrades along with doubling of production capacity within four years.
Since the Indian passenger car market is expected to grow at around 10% a year, given the strong consumption demand, the diesel engine for its Swift model will help Maruti compete with other diesel cars in the market.
With domestic market, the additional capacity being built for exports to Nissan and Suzuki would help Maruti scale up its operations and make tremendous strategic sense, given its expertise in making small cars.
However, it has been reported that this additional capex will lead to some pressure on cash flows, most of the capex will be financed through internal accruals, revenues from the additional investments should flow in sometime after FY 2008.
Monday, September 11, 2006
Haryana to extend all possible help to Suzuki Motors: Hooda
Haryana Chief Minister Bhupinder Singh Hooda has assured all possible assistance to auto maker Maruti Udyog Limited for facilitating its production and expansion projects in the state.
Assuring visiting chairman and CEO of Suzuki Motor Corporation, O Suzuki, here last night, Hooda said that adequate steps have been taken to provide infrastructural support to the proposed export oriented car plant to be jointly set up by Suzuki and Nissan in the Manesar district of the state, an official release said here today.
He said that the carmakers` industrial units would be supplied with power from the Gurgaon-based power plant to be set up by reliance India ltd in the special economic zone.
Besides, the government will set up a transport hub at Manesar and will construct a new Basai canal to facilitate the transportation of finished products to the port, the release added.
Haryana is also considering a proposal from Gujarat to set up a dedicated port in that state for facilitating export oriented industrial units in Haryana which will be finalised after due consultation with the centre, Hooda informed the official.
He also proposed to set up a joint group along with the representatives of Maruti Suzuki to expedite the entire process.
Assuring visiting chairman and CEO of Suzuki Motor Corporation, O Suzuki, here last night, Hooda said that adequate steps have been taken to provide infrastructural support to the proposed export oriented car plant to be jointly set up by Suzuki and Nissan in the Manesar district of the state, an official release said here today.
He said that the carmakers` industrial units would be supplied with power from the Gurgaon-based power plant to be set up by reliance India ltd in the special economic zone.
Besides, the government will set up a transport hub at Manesar and will construct a new Basai canal to facilitate the transportation of finished products to the port, the release added.
Haryana is also considering a proposal from Gujarat to set up a dedicated port in that state for facilitating export oriented industrial units in Haryana which will be finalised after due consultation with the centre, Hooda informed the official.
He also proposed to set up a joint group along with the representatives of Maruti Suzuki to expedite the entire process.
Sunday, September 10, 2006
Maruti-Suzuki scale up India investment plans by Rs 3000 cr
NEW DELHI: Bullish on the Indian market, Suzuki and Maruti scaled up their investment plans for the country by Rs 3,000 crore, taking the total to Rs 9,000 crore, and announced they would start contract manufacturing for Nissan from 2008-09.
Suzuki Chief Osamu Suzuki, on a visit to India, said that the companies would not only expand operations and production in the domestic market but gradually use it as a base for exports to other regions, primarily Europe.
"Around 90 per cent of the new investments would be met through internal accruals while we may have to take loans for the remaining portion," Suzuki told reporters, a day after he along with senior Nissan executives met Government officials to seek their support and better infrastructure facilities.
Elaborating on the plans, he said Maruti's new car plant at Manesar, which is expected to begin production soon, will manufacture 1,00,000 units of the 'Swift' as well as 2,00,000 units of a new "small car" that the company is developing in collaboration with Nissan.
"Out of the production of the new small car, we will export 1,00,000 units ourselves while 50,000 would be exported by Nissan and the remaining 50,000 units sold in the domestic market by us," he said, adding that the plant will see overall investments of Rs 2,500 crore.
Suzuki said the company was also in talks with Nissan for a new 2,50,000-unit plant, location for which is yet to be decided. The investments for this would be around Rs 2,500 crore, though he refused to specify whether Nissan would join in as equity partner or come just for vehicle sourcing.
"No final agreement has been reached on this," he said, when asked whether it will be a joint investment project or just a contract manufacturing deal by Suzuki.
Share price of Maruti closed the day at Rs 913.05, up 2.2 per cent at the Bombay Stock Exchange on a day when the sensex tumbled by 79 points.
Suzuki said Maruti-Suzuki was also increasing investments in its diesel engine manufacturing plant to Rs 2,500 crore. The plant, in which Suzuki has a 70 per cent stake, would begin production from December and will start with an initial annual capacity of 1,00,000 units, which will be scaled up to 3,00,000 units later.
The produce from the diesel plant would be equally divided between both domestic and export markets.
Suzuki said apart from the above investments, Rs 4,000 crore was being put in the company's existing manufacturing location at Gurgaon as part of ongoing expansion programmes.
He said against the total 5.62 lakh units Maruti sold in 2005-06 (including exports), the sales this year were expected to be 6.3 lakh units this fiscal.
Suzuki Chief Osamu Suzuki, on a visit to India, said that the companies would not only expand operations and production in the domestic market but gradually use it as a base for exports to other regions, primarily Europe.
"Around 90 per cent of the new investments would be met through internal accruals while we may have to take loans for the remaining portion," Suzuki told reporters, a day after he along with senior Nissan executives met Government officials to seek their support and better infrastructure facilities.
Elaborating on the plans, he said Maruti's new car plant at Manesar, which is expected to begin production soon, will manufacture 1,00,000 units of the 'Swift' as well as 2,00,000 units of a new "small car" that the company is developing in collaboration with Nissan.
"Out of the production of the new small car, we will export 1,00,000 units ourselves while 50,000 would be exported by Nissan and the remaining 50,000 units sold in the domestic market by us," he said, adding that the plant will see overall investments of Rs 2,500 crore.
Suzuki said the company was also in talks with Nissan for a new 2,50,000-unit plant, location for which is yet to be decided. The investments for this would be around Rs 2,500 crore, though he refused to specify whether Nissan would join in as equity partner or come just for vehicle sourcing.
"No final agreement has been reached on this," he said, when asked whether it will be a joint investment project or just a contract manufacturing deal by Suzuki.
Share price of Maruti closed the day at Rs 913.05, up 2.2 per cent at the Bombay Stock Exchange on a day when the sensex tumbled by 79 points.
Suzuki said Maruti-Suzuki was also increasing investments in its diesel engine manufacturing plant to Rs 2,500 crore. The plant, in which Suzuki has a 70 per cent stake, would begin production from December and will start with an initial annual capacity of 1,00,000 units, which will be scaled up to 3,00,000 units later.
The produce from the diesel plant would be equally divided between both domestic and export markets.
Suzuki said apart from the above investments, Rs 4,000 crore was being put in the company's existing manufacturing location at Gurgaon as part of ongoing expansion programmes.
He said against the total 5.62 lakh units Maruti sold in 2005-06 (including exports), the sales this year were expected to be 6.3 lakh units this fiscal.
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