Ludhiana, June 12
Forging industry in the country is facing twin challanges of rising prices of raw material and stiff competition from China. The majority of the forging units are struggling to get buyers as customers are opting for low-cost imported Chinese products.

Declining sales and cheap imports in domestic market have pushed several small forging units to the verge of closure.

“Stiff competition from China coupled with high input costs has raised concerns among SMEs about their competitiveness and sustenance,” said Deven Doshi, President, Association of Indian Forging Industry.

Dumping of low-priced goods in the domestic market by Chinese manufacturers is alarming as it is eating into the market share of the small-scale forging units.

A large number of SMEs are incurring losses, added Surinder Mehta, another industrialist.

Influx of cheap Chinese forged components in India has not only cast a gloom over the profit outlook of the domestic small-scale industries but was also a threat to foreign direct investment (FDI) inflow.

To resolve this issue and prevent losses, SMEs in the forging sector are seeking imposition of stringent anti-dumping laws and more tariff barriers on Chinese goods.

Rising prices of raw material has also made the industry un-competitive. “There is no control over the rising prices of steel. On June 1, steel prices were increased by Rs 1,750 a tonne. The government should keep a check on the rising prices of steel and Steel Price Regulatory Authority should be formed,” said Doshi.

There has also been has an increase in furnance oil prices. The North Western region of the country uses 70 per cent of furnace oil, but government refineries had stopped producing furnace oil and were producing pet coke from heavy distillate, added Doshi.

Gajendragad (Karnataka), June 12
Wind on this hilltop town of Gajendragad, 700 m above sea level, is strong enough to keep the rotors of wind turbines set up there running at a fair speed and generate electricity. The power generated is transferred to the grid for use by the consumers of the Hubli Electricity Supply Company (affiliated to the Karnataka Power Transmission Corporation Ltd or KPTCL) at Rs 3.40 per unit

Public sector company MMTC is the pioneer of this wind firm and owns 25 of the 54 machines installed. The machines generate 15 MW of electricity a year.

Having been successful with its solitary alternative energy project located in Gadag district of Karnataka, the company plans to enhance capacity. The company entered into wind power generation as part of its business diversification agenda.

P Ramchandran, MMTC’s Bangalore-based general manager, told a group of visiting journalist that the company planned to enhance its wind power capacity another 50 MW over two years.

"We are doing feasibility studies in Gujarat, Maharastra and Karnataka. By the end of this fiscal, we will be able to finalise the locations. By 2013 the wind turbines should get going", Ramchandran said. He added that all three states mentioned by him would probably get a few of the 40-odd machines they were planning to set up at Rs 240 crore.

The machines at the hilltop at Gajendragarh were set up at Rs 68 crore. Production of power from these machines started in March 2007. MMTC has earned Rs 36 crore by selling the power.

“Our idea was to encourage private people also set up wind turbines. We have been successful as 29 machines have been set up by private parties in this location by following our example. There are also instances of a single machine being set up by an individual in the park," Ramchandran said.

According to power purchase agreement (PPA) between the Karnataka government and the producers, this rate can be reviewed only after 10 years after the commencement of the production of power.

MMTC has sold 102 million units of electricity to the HESCOM including 2.6 lakh units generated on a single day (August 17) last year. The project has also been approved for grant of carbon credit UNFCC (United Nations Framework Convention on Climate Change).

Mumbai, June 12
Tata Consultancy Services (TCS) has become the country's third most valued company in terms of market capitalisation as the software giant toppled oil & gas major ONGC to grab the coveted place during the past week.

The market cap of the country's largest software company advanced by Rs 6,948.06 crore to Rs 2,32,642.58 crore. During the last week, the company's counter also attracted investors as the scrip gained 3 per cent to settle at Rs 1,188.65 on the Bombay Stock Exchange.

Commenting on ONGC's downfall, SMC Global Securities Strategist & Head of Research Jagannadham Thunuguntla said, "The recent hike in oil subsidy burden on upstream companies from 33 per cent to 38 per cent is definitely making ONGC investors jittery".

Reliance Industries continued to hold the numero-uno position after it witnessed an addition of Rs 2,569.94 crore to its m-cap which stood at Rs 3,09,047.66 crore. Coal India saw its valuation surge by Rs 7,863.87 crore to Rs 2,55,338.85 crore. — PTI

New Delhi, June 12
In the first signs of a resolution to the over week-long strike at its Manesar plant, Maruti Suzuki India today said it is willing to recognise the new union — the main demand of the workers.

The workers also said they are willing to end the stir provided 11 of their sacked colleagues are reinstated.

“One of the possibilities is to have individual local plant unions with an umbrella governing council that has members taken from the local plant’s union,” Maruti Suzuki India Managing Executive Officer (Administration) S Y Siddiqui said.

It is understood that the governing council will take part in charting out future company policies in order to avoid worker unrest.

The company, however, was silent on the demand for reinstating the sacked workers, although sources said it was unlikely that they would be taken back.

Maruti Suzuki Employees Union (MSEU) General Secretary Shiv Kumar claimed that the company management has agreed to reinstate five out of the 11 sacked workers, but the union is demanding that all of them be taken back.

“If they (management) can take back five, why not all the 11? We are willing to end the strike if all of them are taken back,” he said.— PTI

Mumbai, June 12
Institutional investors such as mutual funds and insurance companies seem to be have caught a fancy for shares of Reliance Industries as their holding in the company has grown to a record high.

The market value of overall institutional holding in RIL has grown by more than Rs 1,500 crore. Despite a dismal performance of the stock, in comparison to the broader market trends, MFs as also government and private insurers have raised their holding in the company over the past six months.

RIL shares have not performed very well in the recent months. The stock has fallen by over 6 per cent over the past one year, as against a gain of nearly 7 per cent in the two benchmark indices Sensex and Nifty.

However, the changes in shareholding pattern of RIL indicate that the institutional holding in the company has seen an uptick after RIL announced a partnership with global energy giant BP earlier this year.

The combined institutional holding in RIL has increased to 23.48 pc, from about 22.96 pc at year’s beginning.—PTI