Companies & Sectors
Eicher to enter personal vehicle segment; forms JV with Polaris

Eicher and Polaris said their 50:50 JV would roll out personal vehicles by 2015 in the domestic and overseas market


New Delhi: Commercial vehicle maker Eicher Motors on Tuesday announced its entry into the personal vehicle segment by tying up with the US-based Polaris Industries to form an equal joint venture. The company would invest Rs250 crore in the JV over next three years to set up a manufacturing facility, reports PTI.


The JV is currently exploring a location in India to set up the plant to roll out "personal vehicles" by 2015 for the domestic as well as overseas markets.


"Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries will allow us to enter into a new vehicle segment," Eicher Motors Managing Director and CEO Siddhartha Lal said in a statement.


As per of a definitive agreement, both the firms have formed a 50:50 joint venture to set up a green-field project in the automotive sector.


"The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets," Eicher Motors said without sharing other details.


The manufacturing facility will be located in India and the JV partners are currently evaluating locations to set up the plant, which is expected to start production in 2015, it added.


"The overall investment in the joint venture company over a three year period will be approximately Rs250 crore. The projected financial outcomes from this venture meet the long term financial expectations of both the companies," the statement said.


According to the agreement, the JV will be governed by a board with equal representation from both the companies.


"At Eicher Motors, we are committed to exploring and pursuing opportunities for long-term profitable growth and value creation for our stakeholders. This JV with Polaris is a strategic initiative towards that direction," Lal said.


The JV will bring together Eicher's expertise in frugal engineering, lean business model and understanding of emerging markets along with product development capabilities and reliability of Polaris, he added.


Commenting on the partnership, Polaris Industries Chief Executive Officer Scott W Wine said: "This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe."


The JV will provide both the firms opportunities to develop new products and realise global growth, he added.


Uninor to scale down operations in TN, Kerala, Karnataka and Orissa

Uninor said in light of the continuing uncertainty around the auctions, it decided to scale down its operation in Tamil Nadu, Kerala, Karnataka and Orissa  

New Delhi: Mobile services provider Uninor on Tuesday said it will scale down operations in four telecom circles - Tamil Nadu, Kerala, Karnataka and Orissa, while sharpening focus on nine other areas in view of continuing uncertainty over spectrum auction, reports PTI.
"In light of the continuing uncertainty around the auctions, the Uninor management has decided to focus its resources by strengthening nine of its 13 commercially active circles," the company said in a statement.
It said it will strengthen operations in UP East, UP West, Bihar and Jharkhand, Kolkata, West Bengal, Andhra Pradesh, Mumbai, Maharashtra and Goa and Gujarat.
This will place the company in a stronger financial and operational position to enter the auctions, rules permitting, the company added.
Uninor has 6.8 million customers in these four circles and 400 direct employees. It said it will "evaluate possibilities of relocating some of the employees to other circles and also provide assistance in securing employment outside the company".
Uninor, in which Norwegian firm Telenor holds over 67% stake, was one of the operators impacted by the Supreme Court order cancelling 122 licences in the 2G spectrum allocation case.
All its 22 licences were quashed by the apex court and are set to expire on 7th September. The court has also ordered conducting fresh auctions by 31st August.
At the end of May, Uninor had 45 million subscribers nationwide. It said the uncertain environment has also affected its ability to secure operational funding.
"Since the Supreme Court order, we have pursued every possible measure to take our business forward in its current form. However, we are now forced to take this difficult but necessary decision," Uninor Managing Director Sigve Brekke said.
The plan now is to enter the auctions with a very strong presence in these nine circles, auction rules permitting, he added.
"We will focus funds, resources and all our efforts to meet even more aggressive targets in these nine circles," Brekke said.
The Telecom Regulatory Authority of India (TRAI) has recommended a base price of Rs3,622 crore for a megahertz of airwaves to be auctioned, and over Rs18,000 crore price for pan-India operations. Uninor has already expressed concerns over the "extremely high" price. 
Uninor said it will maintain a smaller network and remain operational in the four circles.
"Network in these four circles remains operational and the scale down of operations in these circles will be gradual. Uninor will give all its existing customers a 30 day notice before any network scale down is expected to begin," it said.
Uninor will also stop activation of any new subscribers in these circles with immediate effect.
The company said it will closely work with each of its distribution channel partners in the four circles to enable liquidation of market stock or compensation as needed.
"The company will work jointly with its business partners to together recast several agreements in line with the new focus," it added.
Meanwhile, Telenor Group President and CEO Jon Fredrik Baksaas said in a statement, "Since 2nd February (when the Supreme Court cancelled the licences), Telenor Group has continued to single-handedly provide financial backing to Uninor on the belief of an early resolution.
"However, with no sight of either auction rules or dates six months later, we support Uninor in taking this financially prudent decision." 
Baksass said the group will continue to extend funding support to Uninor in the nine circles.
"We urge the Indian Government to provide clarity on the auction policy at the earliest," he added.



venkatesh karnasula

4 years ago

hi sir why network are changed we can tie with another network to stop that auction

Canara Bank Q1 net profit up 7% at Rs775 crore

During the June quarter, Canara bank's total revenues, including interest income, rose 19% to Rs9,165.47 crore while NPA increased to 1.98% from 1.7%

Mumbai: Public sector lender Canara Bank on Tuesday posted 6.8% increase in net profit at Rs775.28 crore for the first quarter ended June 30, 2012.
It had posted a net profit of Rs 725.8 crore for the same quarter last fiscal, Canara Bank said in a filing to the BSE.
The total income of the bank increased 19% during the April-June quarter to Rs9,165.47 crore, from Rs7,707.5 crore in the year-ago period.
The interest income of the bank rose to Rs8,472.86 crore during the reporting quarter from Rs7,180.7 crore in the first quarter of the previous fiscal.
Bangalore-based bank's gross non-performing assets (NPAs) rose to 1.98% during the quarter ended June 30 from 1.69% in the same quarter year-ago.


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