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| Thursday,
April 19, 2001, Chandigarh, India   
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Maruti to import luxury cars
All eyes on credit policy
PSB to come out with public issue Software stocks still ‘overpriced by 35%’
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Scotch hangover
on duty hike Connect cable damaged HERC to hold
meeting on May 8 Bhartia new CII (NR) Chairman Escotel, Bank of Punjab tie-up Packers branch in Chandigarh PC for Rs 9,000
Zee acquires 15 pc stake in Asian Age
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Maruti to import luxury cars New Delhi, April 18 “We are looking at completely built units (CBUs) imports of new models for the domestic market,” MUL Managing Director Jagdish Khattar told reporters at the sidelines of a CII conference here. Khattar said imports of completely knocked down (CKDs) kits could only take place once the volumes of such vehicles rise in the domestic market. “The “Grand Vitara” is a possibility as also other vehicles,” he added. Khattar, however, said studies regarding the cost structure and other conditions were being studied and a final decision has not been taken till date. The government had brought down the import duty on new vehicles to 85 per cent from 105 per cent in the Budget for 2001-02. Simultaneously, in the Exim policy, vehicles imports for all categories have been allowed with certain conditions. MUL is an equal joint venture between the government and Suzuki Motor Corp. of Japan. Suzuki’s Joint Managing Director (global sales) T.Nakamura will be visit India next month to work on the new strategies to be implemented by MUL. “One of the strategies will be to start an aggressive localisation plan and also cut costs,” Khattar said. MUL had posted net losses of about 250 crore over operating profits during 2000-01. “Our target will be to maintain a 60 per cent market share in the domestic market,” he said adding that the company had secured a market share of about 62 per cent during fiscal 2000. Sales of MUL cars dropped by 9 per cent to 3.36 lakh cars during the fiscal ended March 31, 2001 as against 3.70 lakh cars sold during 1999-2000 due to intense competition from Hyundai and Telco. MUL profits Maruti said today it may make a turnaround and post net profit in the current financial year. “This year (2001-02), if the market is reasonable, our efforts will be to look at the net profit. At least, we should bottom out,” Khattar told PTI. “The losses have been due to depreciation incurred on investments which is natural. The depreciation is, however, investments for the future,” Khattar told reporters. “Investments are a continuous process. This year, we may not go in for any major investments,” he said when asked about any proposed investments in the current fiscal. The company is taking several steps to make a turnaround in this fiscal. “An aggressive localisation plan will be started in the current fiscal to increase the local content level on the various cars, especially the new models like ‘Alto’, ‘Wagon-R’ and ‘Baleno’,” Khattar said.
PTI
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All eyes on credit policy New Delhi, April 18 The half-yearly monetary policy, which has great impact on the industrial, banking and export activity in the country, will be announced by the RBI Governor, Dr Bimal Jalan on Thursday. The collapse of the Madhavpura Mercantile Cooperative Bank resulting from heavy exposure in the capital markets has put the onus back on constituting a strong regulatory regime. There has also been remarks from some quarters about the lack of teeth of the RBI in preventing such banking manipulation. The new norms are likely to be aimed at preventing reckless lending in the capital market and cooperative banks, private banks and foreign banks could be the most affected by the new norms, analysts said. Under the existing norms, cooperative banks maintain 15 per cent of their 25 per cent statutory liquidity ratio (SLR) in government securities and rest is held as deposits with other
cooperative banks or with the apex cooperative bank. Analysts said in the wake of the recent pay-order scam, the RBI Governor could increase the securities portion of the SLR for cooperative banks. “The RBI Governor has already indicated that bank rate and cash reserve ratio are unlikely to be touched in the coming policy. This implies that policy will primarily focus on regulatory issues”, a Delhi-based banker told The Tribune. The industry, however, is worried about the possibility of a reduction in the banks’ exposure in capital markets from 5 per cent. CII said banks have to continue to extend credit to invest in the capital market up to the established limit of 5 per cent. The slack season credit policy is often described as the flip side of the Budget where the RBI addresses the supply side issues of the economy. This is being done through the use of monetary instruments of CRR and the bank rate. A cut in the CRR and bank rate increases liquidity in the system and makes available more funds for the corporate sector. Currently, the CRR is at 8 per cent. Industry observers, however, said there has been a decline in credit offtake in recent months, primarily arising out of industrial slowdown and unless the industrial growth picks up credit offtake is unlikely to show signs of improvement. Poor domestic and overseas demand has adversely affected industrial growth. For the 10-month period April ,2000, and February, 2001, industrial output grew by 5.4 per cent compared to 6.5 per cent in the corresponding period of the previous year. Moreover, a cut in the bank rate (the rate at which RBI disburses its own funds to commercial banks) from the existing 7 per cent may not lead to the desired result of bringing down interest rates as deposit rates are already hovering around a high of 8 to 10 per cent. On the forex front,
market men do not expect fresh measures for monitoring the forex market. They say that despite a weakening of the rupee against the
greenback, the forex reserves of the country were comfortable enough with $42 billion.
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PSB to come out with public issue Chandigarh, April 18 So said Mr N.S. Gujral, the new CMD from Corporation Bank, at a press conference here today. Because of large NPAs — amounting to Rs 774 crore with Rs 115 crore recovery — PSB curtailed lending in the last fiscal. About 1,950 bank employees who opted for the VRS are unhappy at their hasty, ungraceful exit and delayed payments, which Mr Gujral said, would be cleared by April 15. Employees also allege haphazard promotions. He admitted mismatches in certain branches, hitting work, with the VRS-driven exodus of staff, but ruled out closure of any branch. Despite the economic slowdown and stiff competition from vibrant private banks, the new PSB boss painted a rosy picture of the bank's future. All 39 loss-making branches will start making profits by this year-end, he claimed. Only 74 per cent of bank work is computerised and the bank plans to put up two ATMs in Chandigarh and one in Amritsar. Also on the CMD's "to-do" agenda is a public issue which, he said, would materialise when market conditions stablised. The bank plans to raise Rs 100 crore to improve its capital adequacy ratio from the present 11 per cent. Post-issue, its equity would balloon to Rs 450 crore. To its credit, the bank has started making profits after a Rs 132 crore loss five years ago.
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Software stocks still ‘overpriced by 35%’ New Delhi, April 18 “Indian software stocks are finally facing the inevitable. They had fallen victim to irrational exuberance driven by feel good factors and investors’ fascination for technology stocks without much knowledge about it,” Skoch Consultancy Services said in its latest report on Software Industry. Stating that unrealistic price valuations of software stocks were responsible for the current state of “correction” in stock market, the report said “there is need of a further correction up to 35 per cent.” The finding, which are a part of a larger report “a fresh perspective for the Indian Software Industry”, said even the share price over operating profit ratio that did not usually exceed 10, had exceeded 100 in many cases due to abnormally inflated share prices leading to a crash. While sentiments at stock markets may still keep the prices skewed, IT may fail to contribute to GDP growth targets, Sameer Kochhar, Managing Director, Skoch Consultancy Services said. Sectoral predictions were based on export performance figures that were not even officially compiled by the government, Skoch said, adding the new Exim policy had corrected this which may dampen the spirits further. Based on $ 87 billion IT revenue target by 2008, India’s IT contribution has to grow from current 1.3 per cent of the GDP to 7-8 per cent of GDP during the period, as high as the level of the US infotech market. “This could tantamount to almost every dollar of FDI inflow and every knowledge worker produced in India getting absorbed in the IT sector and still leaving a huge resource gap to arrive anywhere near the $ 87 billion figure,” the report said.
PTI
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Intel net plunges San Francisco, April 18 Intel said yesterday net income fell 82 per cent to $ 485 million, or 7 cents per diluted share, in the quarter ended March 31, from $ 2.7 billion, or 39 cents a share, a year earlier, due to weak demand and slowing economic growth. The company, based in Santa Clara, California, said sales in the quarter fell 16 per cent to $ 6.68 billion from $ 7.99 billion. Despite a slowing US economy, weakness in other parts of the globe and waning spending on information technology, Intel Chief Executive Craig Barrett said he believes its microprocessor business — 80 per cent of the company’s sales — has stabilised. And Chief Financial Officer Andy Bryant told Reuters in an interview that he saw ‘’some good signs toward the end of the quarter.’’ Intel had already issued a grim profit forecast in March, but its principal competitor in the market for microprocessors, Advanced Micro Devices Inc. did not issue a sales warning. It reports second-quarter results on
Wednesday after the close of regular trade. “The immediate reaction is going to be, ‘oh my God, Intel said the world is just fine,’’’ said Lehman Bros. Analyst Dan Niles. “Obviously, they’re painting a much different view than most every other semiconductor company out there.’’ Intel also gave an unusually wide range for second-quarter sales of $6.2 billion to $6.8 billion, meaning revenue will fall 18 to 25 per cent from $8.3 billion a year ago. Excluding acquisition-related charges, net income fell to $1.1 billion, or 16 cents a share, for the quarter ended March 31 from $3.04 billion, or 43 cents, in the year-earlier quarter. “In our microprocessor business, given what we saw happening in March gives us a lot more comfort that we’ll have a pretty normal second quarter and a seasonally strong second half of the year,’’ Bryant told Reuters in an interview. “The first quarter was difficult at best,’’ Bryant said. “In March we saw a return to the time when customers started ordering new product again.’’ Intel said that at the end of the quarter, microprocessor inventories were just within its target, while, not surprisingly, inventories of flash and communications chips were above guideline and bryant expects a rebound later this year, but many are skeptical of a turnaround in that market any time soon. $ 4.2b for R&D The company also reiterated its plans to spend $7.5 billion this year on capital spending and $4.2 billion on research and development, which should allow chip-equipment makers to breathe a sigh of relief. Intel is in the midst of changing over its factories to using larger, dinner-plate-sized silicon wafers and moving to thinner geometries on the chips. On a conference call with analysts and investors, Intel Executive-Vice President Paul Otellini said that average selling prices for desktop microprocessors such as its Intel Celeron and Pentium 4 chips were little changed from a year ago. But he also said microprocessor shipments declined significantly and cited the general economic weakness, particularly in the United States, and bloated microprocessor inventories among its customers who didn’t need to buy new chips from intel. “PCs are much less screwed up right now than the wireless and networking areas,’’ said Lehman Bros analyst Dan Niles. All well and good, but some analysts said they see more pitfalls ahead. “The microprocessor business is experiencing secular declines in profitability.’’ “We’re in a new era of competition and aggressive pricing is going to be the order of the day,’’ Peck said. “That’s why margins are down and I don’t see that improving.’’
Reuters
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Scotch hangover
on duty hike London, April 18 The dispute between the Scotch Whisky Association and the Indian government is set to become an issue at the WTO that can throw India’s tariff rates on the rocks. The Scotch association has invoked five WTO provisions to challenge the new Indian tariff on Scotch whisky. The dispute comes after the Indian government lifted its ban on the import of bottled spirits on April 1. “April should have been a good month for Scotch lovers in India,” a spokeswoman for the whisky association told IANS. But “cheeurs” is about the last thing they’re saying to the Indian government in Scotland. The whisky
association has figured that the new tariffs will actually raise tariff up to 706 per cent from the present 222 per cent. Scotch producers are “incensed,”
the association said in a statement. They had expected tariff to be reduced progressively from 222 per cent to 150 per cent by 2004. “However, cautious optimism has now been supplanted by disbelief as an array of protectionist trade policies emanate from teh Indian govern,” the association said.
IANS
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Connect cable damaged Chandigarh, April 18 All Connect subscribers in Jalandhar and Ludhiana were cut off from the Mohali-based main exchange. The damage occurred at about 12 noon and efforts were on to rectify the damage as soon as possible. “We are aware of the inconvenience caused to our subscribers and are therefore rectifying the damage done to our cable and restore connections on top priority. We have also requested the MC to coordinate with us before undertaking further trenching operations,” said a Connect official. The connections were restored later in the evening.
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HERC to hold
meeting on May 8 Chandigarh, April 18 Several organisations have represented against the MMC, which were revised by the HERC from Rs 60 per KW to Rs 200 per KW recently. In its memorandum submitted to the HERC, the Haryana Chamber of Commerce and Industry has argued that since the HVPN and the two power distribution companies were registered under the Company’s Act, they should not be allowed to charge its customers for services or goods not used by them. The Senior Vice-President of the chamber, Mr N.C. Jain, who briefed the press here today, said the HVPN and the distribution companies had asked only for an increase in the tariff from Rs 3.92 per unit to Rs 4.19 per unit. |
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Bhartia new CII (NR) Chairman Chandigarh, April 18 Hari S. Bhartia along with his brother, Shyam S Bhartia, is the owner and promotor of the Rs 800 crore Vam Bhartiya group. Jagdish Khattar is the Managing Director of Maruti Udyog. Graduating from St. Stephens’ College, Khattar subsequently acquired a degree in law. He joined the IAS in 1965 and took voluntary retirement in 1993 when he joined Maruti Udyog as Director (Marketing & Sales). He was appointed MD in August 1999. |
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Escotel, Bank of Punjab tie-up New Delhi, April 18 In order to gain access to mobile banking, the bank customers will have to get registered by filling up a mobile banking form at any bank branch. ATM or Escotel connect point. Once a customer has registered for the service, all he needs to do is send a short message through the cellular phone to the bank and he receives a response from the bank on the cellular handset screen instantly. The technology deployed in this service ensures instant response and complete security, said Mr Tejbir Singh, ED of the bank.
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Packers branch in Chandigarh New Delhi, April 18 According to Mr Ramesh Agarwal, Director of the company, the packing, moving and logistic market in and around Chandigarh is of approximately Rs 3 crore and the company expects a share of 50 per cent in the next two years. Chandigarh, Mohali and Panchkula which are dealing in industrial as well as in domestic sector have prompted the company to have its own network without agencies. The company will provide latest infotech facilities with 24 hours communication and tracking facilities through its e-mail. |
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PC for Rs 9,000 Bangalore, April 18 The Simputer was conceived in response to concerns that India, despite being at the forefront of IT, had a large mass of people with no access to computers. It is expected to help bridge the so-called "digital divide." Its low price is the result of a global "open source initiative" under which technology is freely available to anybody. Simputer is also cost-effective because it involves the free-to-use operating system "Linux."
ANI |
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BSE board Mumbai, April 18 |
Car-free day in Singapore Buy a book on cell phone Female-only airline seats soon Daimler sticks to Hyundai Indian ulcer drug for USA |
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Drug banned e-business paper New laptops Aptech new CEO HDFC Bank MicroLand |
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