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India Inc. can outsmart Chinese goods: Havells India

The chairman and managing director of the Rs8,000-crore group, which counts Sylvania, Standard and Crabtree in its stable of brands, said at the facility in this Rajasthan town that the threat of unhealthy completion from Chinese electrical goods was no longer relevant

 

With manufacturing at the core of Prime Minister Narendra Modi’s “Make in India” campaign and labour costs in China eating into margins, India’s electrical goods manufacturers see little threat today from cheap imports, says Havells India chief Anil Rai Gupta.
 
“The competition will be there. But the threat of unhealthy competition is over. We offer a much higher quality, ‘Made in India’ products at competitive costs,” Gupta said, launching his group's power-saver range of “Lumeno” LED lights and “ES-40” fans in this Rajasthan town, some 120 km from the national capital, over the weekend.
 
The chairman and managing director of the Rs.8,000-crore group, which counts Sylvania, Standard and Crabtree in its stable of brands, said at the facility in this Rajasthan town that the threat of unhealthy completion from Chinese electrical goods was no longer relevant.
 
Manufactured at its Hardwar plant in Uttarakhand, Havells -- which has entered its 40th year of operations -- also showcased the ES-40, claimed to be India’s first 40-watt fan, costing less that Rs. 2,000. "It can cut household electricity bill by as much as 17 percent."
 
Conventional fans consume around 75-80 watts and account for around 35 percent of a household's electricity consumption in India. Replacing one conventional fan with ES-40 can save a consumer, who runs a fan for 16 hours a day, up to Rs.1,020 a year.
 
The company also introduced at the event a new range of miniature circuit breakers, residual current circuit breakers and electrical safety devices, under “Euro-II” series for Indian market and said these were entirely "Made in India".
 
“The faith in Indian manufacturers is growing with maturity of consumers. They are no longer looking for low-quality, cheap products. They are buying products that give them higher returns -- both in terms of longevity and energy savings," Gupta told IANS. 
 
"This explains the increasing popularity of our products even in Tier-III cities and rural areas," he said. "Innovations at three levels - branding, distribution and manufacturing technology -- have helped tide over the challenge posed by cheaper alternatives in the market."
 
Gupta said in innovation and manufacturing, Havells set up plants comparable to the best in the world with global scale of operation, besides putting in place efficient manufacturing systems required to produce such quantities of high-quality goods at low cost.
 
“Innovations at all these three levels have been the driving force that has helped us post double digit growth over the past five years. We compete with both domestic and low-cost products from countries like China,” Gupta noted.
 
“Our return on capital and return on equities has been the highest in the industry.”
 
On the LED lighting segment -- a Rs.850 crore market in India, slated to grow at 45 percent annually -- Gupta said his company has set a target of Rs.600 crore of revenues over the next two years. “LED will be at the core of our strategy for the lighting and fixture segment.”
 
Havells also claimed a 14 percent market-share in the highly competitive, Rs.5,500 crore fan market. It has targeted Rs.1,000 crore revenue and 16 percent market share in this segment over the next two years.

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Assocham against NSEL merger with parent Financial Technologies

Assocham said that a company cannot be held liable for "any alleged liability" of a subsidiary, unless so adjudicated by a court of law

 

Industry chamber Assocham said on Sunday that it has written to Finance Minister Arun Jaitley to reconsider the draft merger order of the National Spot Exchange Ltd (NSEL) with its parent firm Financial Technologies (India) Ltd (FTIL) in the larger interests of domestic trade and industry.
 
"The proposed forced amalgamation of NSEL with FTIL through an administrative order would set a very dangerous precedent in the domestic corporate sector, as it ignores valuable rights granted under law to the various stakeholders of a company," the Associated Chambers of Commerce and Industry of India said in the letter to Jaitley, who is also the minister of corporate affairs.
 
To safeguard the interest of investors and creditors in the face of a Rs.5,600-crore payments crisis at NSEL, the corporate affairs ministry had last year proposed a merger of the spot exchange with FTIL.
 
FTIL said last month that 99.55 percent of the shareholders have objected to the proposed amalgamation of NSEL - which represents 79.58 percent of its total equity capital.
 
Assocham said that a company cannot be held liable for "any alleged liability" of a subsidiary, unless so adjudicated by a court of law.
 
"It will destroy the concept of 'limited liability' which is the fundamental principle of corporate jurisprudence," it said.
 
It also claimed the merger would adversely affect over 63,000 shareholders and more than 1,000 employees at FTIL.
 
It said the ministry has finalised the share swap ratio for the proposed merger of "crisis-hit NSEL with its holding company FTIL."
 
"However, the share swap assessment order will be effective only after the government takes a final decision on merger," the statement added.
 
The controversy took a new turn on March 31 with the FTIL management proposing a settlement with traders who lost their money while dealing at the commodity bourse.
 
"We have proposed a solution that ensures that 94 percent trading clients receive between 50 and 100 percent of their claims", chief executive and managing director of Financial Technologies Prashant Desai said in a statement.
 

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COMMENTS

LALIT SHAH

12 months ago

I am a share holder of financial technology and victim of wrong doing by MCA to merge NSEL with FT my and so many investors interest hurt by government to merge to save some big entity in NSEL scam also this merger is against company low plese as a org fight for common small investors

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