“We create capacity to make and sell cars. So if there is no demand for cars I don’t have to create that capacity," Maruti Suzuki India chairman Bhargava said.
Maruti Suzuki India (MSI) expects to complete land acquisition for a plant in Gujarat in a month but has no immediate plan to start construction work there, a company official said.
Maruti Suzuki India chairman R C Bhargava said they would initiate work at the Gujarat plant only when the capacity of its Manesar plant would be fully utilised. "The land acquisition process is on and we hope it will be concluded in this month. I don't think we will start work on it at least two to three years," Bhargava said on the sidelines of a seminar at Indian School of Business here. "We will need Gujarat plant when the Manesar plant capacity is fully utilised. So, that depends on how the market grows. So, I can't give a date on this," he added. The company has two facilities at Gurgaon and Manesar, both in Haryana, with a collective capacity to manufacture 1.2 million vehicles annually.
According to a senior official of the Gujarat government, the initial land requirement of MSI was indicated to be 1,000 acres. The MSI board had also given the nod to purchase of up to 1,500 acre of land in Mehsana district, Gujarat. The auto major had stated in June that along with its vendors, it could invest Rs18,000 crore in the state as it looks to manufacture nearly 20 lakh units a year in Gujarat.
"We have to see how the market goes. It takes three years to build a new plant. So, if I need to take production from Gujarat plant in 2016, then I will have to start work in 2013. "Nobody can create capacity when market does not require. We create capacity to make and sell cars. So if there is no demand for cars I don’t have to create that capacity," Bhargava said.
On the automobile industry, Bhargava said now the outlook for the industry is not bright. Maruti this year may end up less than last year's sales. "I cannot tell in terms of percentage because there are four more months to go. Let’s see how these four months to go. Chances are will be less than last year," he said. Till November this year, MSI sold 6,81,200 units down by 17.8% over last year same period. Exports declined by 24.4% to 73,783 units till November.
In the early afternoon, Maruti Suzuki India was trading at around Rs966.50 per share on the Bombay Stock Exchange, 1.95% down from the previous close.
If accepted by Uganda, this would be the second refinery of Essar Oil in Africa
Ruias-owned Essar Oil Ltd has proposed to set up a 6 million tonne refinery in Uganda even as it plans to invest $1 billion in more than doubling capacity of its Kenya refinery.
"There has been a big oil find in Uganda. To process it, they will need a refinery. We have suggested to the Ugandan government that we can set up that refinery," said L K Gupta, the new CEO and managing director of Essar Oil.
If accepted by Uganda, this would be the second refinery of Essar Oil in Africa. In July 2009, the firm had acquired 50 per cent stake in Kenya Petroleum Refinery Ltd which operates in Mombassa.
Essar has a 14 million tonne refinery at Vadinar, Gujarat and had recently acquired a 296,000 barrels per day Stanlow refinery in UK. The Mombasa refinery had a capacity of 3.7 million tonne but was operating at 1.6 million tonne only. The company plans to invest $1 billion in revamping and expanding the operating refining capacity to 4 million tonne by 2015-16. Gupta said the proposal was only at discussion stage and nothing has been finalised as yet. "We are in talks. Nothing has been firmed up yet." Detailed feasibility for the expansion would be ready by April 2012, he said, adding that the refinery is dependent on unreliable grid power which has seen 100 disruptions in past two years. A captive power plant would be set up as part of the expansion, he said. Gupta said Essar, which is expanding Vadinar capacity to 20 million tonne by next year, is looking at exporting fuel from India into Africa. Essar Petroleum (East Africa) Ltd has been set up for import of crude and products, he said.
East Africa is deficit in refining capacity and relies on imports to meet its demand.
As for Vadinar refinery, Gupta said that in the second phase its capacity would be expanded to 34 million tonne. Essar operates over 1,300 petrol pumps in India and another 300 are in various stages of commissioning, he said, adding that the company does not intend to expand its retail network aggressively unless the government deregulates diesel prices.
The company and other private retailers like Reliance Industries are unable to compete with state-owned firms like IOC who get subsidy from government for selling fuel below cost.
In the early afternoon, Essar Oil was trading at around Rs65.75 per share on the Bombay Stock Exchange, 1.94% down from the previous close.
Lupin through its enhanced presence is aiming to become one of the top five generic pharmaceutical companies in Japan in the next three years.
Drug maker Lupin is eyeing a jump of over 80% in its revenues to USD 300 million (about Rs1,557 crore) from the Japanese market in the next two years on the back of its enhanced presence in the country. The company, which is present in Japan through its subsidiary Kyowa Pharmaceutical Industry, has strengthened its presence with the acquisition of I'rom Pharmaceuticals for an undisclosed amount.
"Besides US and India, Japan is a priority market for Lupin, and between the two companies in Japan (Kyowa and I'rom), Lupin looks to clock in revenues of about USD 300 million over the next two years from the present about USD 165 million," Lupin President (Finance & Planning) and CFO S Ramesh told PTI.
Last month, Kyowa had entered into an agreement with I'rom Holdings Co Ltd (IH), an integrated healthcare provider to acquire up to 100% of outstanding shares of its subsidiary, I'rom Pharmaceuticals (IP). Lupin had earlier bought Kyowa in 2007.
The Mumbai-headquartered firm has been strong in the oral segment in Japan and with the new acquisition it would also get access into the injectable space. The company, through its enhanced presence is aiming to become one of the top five generic pharmaceutical companies in Japan in the next three years. Currently, Lupin is the ninth largest generic player in the Japanese market. Apart from Japan, the company is also eyeing to enter other markets, including Latin America and Europe. "In terms of markets of interest we are currently evaluating entries into certain markets in Latin America, Central and Eastern Europe," Ramesh said.
In the early afternoon, Lupin was trading at around Rs433 per share on the Bombay Stock Exchange, 1.84% down from the previous close.