Maruti Suzuki to limit exports to last year's level

The company has been forced to take the decision in view of capacity constraints

India's largest automaker Maruti Suzuki will limit exports to the same level as last year due to capacity constraints, reports PTI

"We are not competing in exports (with other carmakers)... We are short of capacity. This year exports will not go beyond last year", Maruti Suzuki chairman R C Bhargava said.

Maruti Suzuki exported 1.47 lakh units in 2008-09, its highest ever export figures, with the compact car A-Star alone clocking over 1.27 lakh units.

"A-Star" was exported to Europe, including UK, France, Germany, Italy and the Netherlands. Major non-European export markets for the car include Algeria, Chile, Indonesia and neighbouring countries.

South Africa, Hong Kong, Australia and Norway were new markets where the company's cars were exported during the year

To address increasing demand for its products, Maruti Suzuki has commenced work to increase capacity at its Manesar plant.

"We have started work at Manesar. But that will take time (to reach full capacity), which would be by 2012" he told PTI.

In March 2010, the company had announced a Rs1,700 crore investment for expanding production by 2.5 lakh units at its Manesar plant.

Production capacity after the expansion will reach 12.50 lakh units by 2012.

Mr Bhargava replied in the affirmative when asked whether the company was facing delay in deliveries. "Almost all our models are in the waiting list...I would say the average waiting list is three months for the diesel variant of Swift DeZire."

"We will keep increasing production in whichever way we can primarily to meet customer demand...our reasonable target (to meet the demand) is 2012", he said.

Maruti Suzuki sold 10.18 lakh vehicles in 2008-09 fiscal, the first time in Indian automotive history that a car company has sold over a million units in a financial year. This included sales of 8.70 lakh units in the domestic market, the highest ever by the company in a fiscal.

Asked whether introduction of new models by foreign companies would be a challenge, Mr Bhargava said every carmaker has to introduce new models to address customer needs. "He (carmaker) should make sure the customer gets something new".

On the growth of the automobile industry, he opined it might grow by 15%. "Even SIAM (Society of Indian Automobile Manufacturers) also said the industry would grow by 12%-14% and that is reasonable...but we have to look at base effect also", he said.

Mr Bhargava felt one of the biggest challenges facing the industry is lack of infrastructure. "I think (lack of) infrastructure is one big problem… especially when you look at global developments (in auto-industry)".

He urged more car makers to look at investing in "Research and Development" and also address labour issues.

Asked whether the company would phase out Maruti 800, the first small car introduced in 1982, he said, "Sometimes, every model has to be stopped… Maruti 800 will also end at one stage… I don’t know when it will happen… Right now, it is running..." he said.

Maruti Suzuki reported a 17.28% jump in sales to 88,091 units in June against 75,109 units in the same month last year.


Economy to grow over 9% in Q1: Pronab Sen

GDP grew by 7.4% in the last fiscal with its fourth quarter managing clipping at 8.6%. The government expects 8.5% growth this fiscal

The economy is likely to grow above 9% in the first quarter, reports PTI quoting Planning Commission principal energy advisor Pronab Sen.

"The first quarter gross domestic product growth (GDP) will be slightly above 9%," said the former chief statistician on the sidelines of a PHD Chamber function in New Delhi.

Last Friday, chief economic Advisor Kaushik Basu also had said the first quarter might show up around 9% expansion while the full fiscal would grow over 8.5%.

GDP grew by 7.4% in the last fiscal with its fourth quarter managing clipping at 8.6%. The government expects 8.5% growth this fiscal.

The economy has been on the recovery path since dipping to 6.7% in FY09 mainly on stimulus measures undertaken by government, which saw the and industry ticking back after the global downturn that began in September 2008.

Industrial production has remained in double-digits for the eighth month in a row in May driven mainly by a robust performance of the manufacturing sector. However, Mr Sen said industrial growth is not likely to remain in double digits for the full financial year. It has slipped to 11.5% in May from 16.52% in April.

"The index of industrial production is very unlikely to cross 10% this fiscal. It will be probably around 9%," Mr Sen said.

On headline inflation, he said it is likely to inch up from the 10.55% in June, but will not cross 11% mark in July.

"July provisional inflation is likely to be below 11%. Inflation may peak in July unless rains play havoc," he said, adding the fuel price hike has already been factored in.

On whether there should be a uniform sales tax on petrol and diesel to avoid inter-state price disparity, he said the Centre has no role as sales tax on these items are out of the value-added tax (VAT) regime and it depends solely on the states.


Massive trading in penny stock Cals Refineries

Unknown Cals Refineries is attracting millions of trades but no scrutiny

Cals Refineries, a penny stock (Rs 0.33), is a ferociously-traded company about which very little is known. However, the very fact that more than 40 million shares are traded in this stock daily (2-week average) even when its market cap is little more than Rs2.6 billion warrants a closer look at what’s going on here. The plot is quite thick — with rumours (and no evidence) that the promoters of Cals (Spice Energy) are the same as Spice Jet and the fact that it is building a 5mtpa refinery at Haldia (nowhere near completion from its own updates).

The BSE website reveals that the 52-week high of this stock is Rs0.89 on 11 September 2009 and its low was Rs0.27 on 24 May 2010. It has a good delivery ratio of 64%. On 17 May 2010, the company put out a notice on the BSE with ‘disclosures required under Clause 41(IV) (e) of the Listing Agreement for the Quarter ended March 31, 2010’. It revealed that it had raised about Rs8 billion in December 2007 through GDRs and has used its money for ‘the project’ — setting up a 5mtpa refinery at Haldia, which it expects to start in the last quarter of FY12.

After that relatively fresh piece of disclosure, it’s quite a shock to see the company’s dismal filing of quarterly and annual numbers. It has not filed quarterly numbers since June 2008 (sales Rs0.27 million and loss at Rs0.22 million, the same numbers for FY09, no disclosures since then). After the dismally dated financial filings, the relatively updated shareholding pattern (March 2010) reveals that the promoter group holds less than a percent. However, FIIs hold 6% (P-notes, Mauritius, Goldman Sachs, Merrill Lynch, Taib Securities). “Shares Underlying Outstanding DRs as % of Total No. of Shares is 55%.”

Internet message boards and forums around this company are very active (a true understatement) and range from outright attempts to lure more investors into this share to half-hearted attempts to console shareholders who have bought at higher prices possibly by trapped shareholders themselves. Most hopes are centred around the promoter company coming out with some fantastic announcement that is going to save all the trapped investors and make the speculators rich.

Now comes the most interesting part. The promoter company, which is called Spice Energy Group, has a logo that looks suspiciously like the Spice Jet logo, leading a lot of people to believe that it is the same group — the message boards of course actively contribute to this belief. I have found no evidence to indicate this is so. While the SpiceJet logo has dots, the Spice Energy logo has swishy lines — although the colours are startlingly similar. A deliberate attempt at association? Possibly.

SpiceJet was promoted by Ajay Singh and the Kansagra family. There is nothing linking these promoter to Cals except, again, ubiquitous comments on message boards, and some random documents floating around on the net saying that Bhupendra Kansagra was on the board of Cals (again, although possible, I have found no evidence).

There is a Hindu Business Line article dated 30 January 2010 in which DS Sunderajan, CFO of Spice Energy, claimed that the promoters of Spice — Sanjiv Malhotra, Ravi Chilukuri (CEO) and Gagan Rastogi and their families — actually controlled as much as 75% of the paid-up equity capital in Cals by subscribing to the GDRs. The article says that Cals was trying to get $250 million in foreign funding and an equal amount of domestic funds to achieve the financial closure of its proposed $1.1-billion refinery project at Haldia before March. In the article, Mr Sunderajan said that BNP was trying to tie up foreign funding for them while SBI Caps was looking at the domestic side. Some websites say that Sanjiv Malhotra is a former co-promoter of SpiceJet, but then again, no credible source.

There has been lots of regulatory action around this stock, although never directly on the company. The latest one, 1st July, was that Dr KM Abraham, whole-time member, the Securities and Exchange Board of India (SEBI) passed an order confirming the order against Chimming Trading Company Limited in the matter of alleged manipulative trading by certain connected entities in the scrips of Cals Refineries Limited and others. In June 2009, SEBI had barred 26 entities from dealing in the capital markets for acting as conduits for Ketan Parekh and executing synchronised deals in five scrips over a period of 26 months from January 2007 to February 2009 — one of the scrips in which the deals were done was Cals Refineries.

After all that cyber-snooping, I think it is safe to assume that there is something truly fishy about this company and all the trading that seems to be happening around its stock. I have not found a single piece of evidence suggesting that the fortunes of this company are going to turn around or found any evidence that it is anywhere near completing this refinery project. Investors, if you are smart, stay away.



shushli tiwari

1 month ago

A global relief rally in equities on the outcome of first round of French election and the surge in institutional flows that followed, besides a slew of healthy corporate earnings swayed market sentiment, as the domestic stock indices climbed up to 2 per cent this past week. Equity tips

Ashish Tripathi

5 years ago

Cals refineries is a fraud company. Promoters have duped investors by offloading GDRs at huge premium. No operations for the past 5 years and execution to take more than 3 years from inception date. Banned by SEBI from accessing capital

Stock Explain

6 years ago

Given below is a link that carries an updated, comprehensive, and impartial analysis of the latest situation at Cals Refineries:


6 years ago

i am azam qasmi

please e mail new

Stock Explain

6 years ago

Here is an updated analysis on Cals Refineries:


6 years ago

CAPACITY OF REFINERY = 4.8 MMTPA (Million Metric Tonnes Per Annum)= 100000 Barrels Per Day (Approximately) = 36500000 Barrels Per Annum

Kartik Rajani

6 years ago

Cals Refineries is planning to raise more funds by tying up with Kharafi Group. The details are availabe with the BSE website. Pl check & confirm.

Ajay Sharma

6 years ago

Any Update(s) on ur earlier comments? Mr. Munira Dongre

Ajay Sharma

6 years ago

Any update(s) on ur earlier comment's.

Harshal Patwa

7 years ago

India's Cals Refineries to get Kuwaiti funding (Fri Nov 26, 2010)

Kharafi Group will invest $150 million in a 100,000 barrels per day (bpd) coastal refinery being built by Cals Refineries Ltd (CALS.BO: Quote), the Indian company said on Friday, the first such investment by a Kuwaiti firm.

The financing could finally allow Cals Refineries to push ahead with long-delayed plans to build the plant. Shares in the company were up over 7 percent on the Bombay stock exchange.

Kuwaiti family conglomerate Kharafi Group is likely to get an equity stake with investment, a source with direct knowledge of the company's operations told Reuters.

The refinery could cost as much as 50 billion rupees ($1.10 billion) and the company is looking at raising further funds, the source said.

Cals Refineries, which has a market value of about $100 million, said in a stock exchange filing the deal with Al Qebla Al Watya, the investment arm of Kharfi, was signed on Thursday and is subject to statutory government and regulatory approvals.

Cals Refineries bought an existing refinery from German firm Bayernoil and planned to reconstruct it on the coast at Haldia in India's West Bengal state.

It has repeatedly delayed the start up of the plant due to financial constraints.

The latest timeframe for the plant's start-up was given in September by the company, when it told the stock market it expected commissioning in the Jan-March 2012 quarter, a delay of about 2 years from the initial estimates.

In 2008, Ravi Chilukuri, who heads Spice Energy which owns Cals Refineries, said oil major BP had agreed to supply full fuel requirements of the plant for about 10 years and agreed to buy 65 percent of throughput at market prices.

Cals Refineries also has a product supply agreement with Indian state-refiner Bharat Petroleum Corp (BPCL.BO: Quote).


Things are Changing !
This is the Right time to invest !


7 years ago

This is the most immature writing I ever seen from any magazine... there are some of the facts which are misleading.... From the content we can make out that its written with negative bias. Its open ended writing, shows immaturity.

rajeev gera

7 years ago

please open my dmat trading account


7 years ago

यह एक ऐसी स्क्रिप है शेयर ट्रेडिंग के लिये जिसमें पता नहीं कितने इन्‍वेस्‍टर बेवकूफ बनते हैं लेकिन यह तय है कि ब्रोकर ही मात्र करोड़पति और/या अरबपति बन रहे हैं
छोटे इन्‍वेस्‍टर्स को तो इस स्क्रिप से दूर ही रहना चाहिये, यह कहना ज्‍यादा मुनासिब होगा कि इसे देखना/सुनना भी पाप मानना चाहिये
छोटे इन्‍वेस्‍टरों के लिये टीप है कि -
इस स्क्रिप पर ब्रोकर्स पांच पैसे प्रति शेयर ब्रोकरेज चार्ज करते हैं और इस ब्रोकरेज के उपर सर्विस टैक्‍स भी भारी मात्रा में ही चार्ज हो जाती है साथ ही अन्‍य टैक्‍सेस मिलाकर, इस काल्‍स रिफाइनरीजृ का प्रति शेयर अपने अपने मूल कीमत से बहुत ही मंहगा पड़ता है
सिर्फ खरीदी पर ही नहीं बेचते समय भी यह समस्‍त चार्जेस पुनः लगते है
और इस स्‍क्रिप का भविष्‍य फिलहाल दूरगामी तौर पर कुछ भी द्रष्टिगत नहीं है
अलर्ट रहें छोटे इन्‍वेस्‍टर्स और मेरी सलाह है कि इससे दूरी बनाये रखें



In Reply to Ramesh 7 years ago

मैनें 25 अगस्‍त 2009 को 'मोतीलाल ओसवाल सिक्‍युरिटीज्र लिमिटेड' के माध्‍यम से 8275 शेयर्स काल्‍स रिफाइनरी के खरीदे हैं जिसका ब्‍यौरा निम्‍नानुसार है -
8275 Shares @ 0.60 = 4965.00
Brokarage 8275x0.05 = 413.75
Service Tax 413.75x12.3% = 42.63
Other Charges = 6.68
Total Contract Note Value = 5428.06
On the basis of Contract Note -
Per Share Value 5428.06/8275_SH = 0.66
अर्थात 60 पैसे के प्रति शेयर पर 10 टके की कुल चार्जेस और लगभग साढ्रे आठ टके की ब्रोकरेज
वर्तमान मुल्‍य 34/35 पैसे प्रति शेयर है
वर्तमान भाव में बेचने पर भी ब्रोकरेज व सर्विस टैक्‍स वही ही लगेगी अन्‍य चार्जेस में नगण्‍य सा ही अंतर आयेगा
याने कि यदि 34 पैसे के भाव पर बेचते हैं तो यथार्थ में इससे शेयर 28 पैसे ही वसुल होंगे
गणना करें कि यह काल्‍स रिफाइनरी किस प्रकार फायदेमंद है

Stock follower

7 years ago

I do not think the magazine team of Moneylife should restrict itself to only "Cyber snooping". If you call yourself research magazine and have the resources, why not to call up the management of company and talk to them? Y not get the answers to all your questions? Is it because you just want to fill up some space in magazine and site? You could have done that very easily but does not seems to be even interested in it. You are talking about everythin that we can also find on internet by googling ..then Y do we need moneylife? expectations from publications like moneylife are at different levels which this article completely falis to meet up.

pradeep kumar lohani

7 years ago

Cals refineries should comeforward with new plans. ONGC is having so much need of such refineries and to backload crude from GGS to refineries. Cals. should take oppertunity to tender in ONGC and get profited as other subsidiaries like petronet or mrpl and many others are growing.

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