MRF plans to acquire companies abroad to offset high import duty

MRF plans to acquire plantations or companies abroad to neutralise the impact of high import duty on rubber

"MRF is the first Indian tyre company to have crossed the turnover of Rs10,000 crore in one year. It registered growth in excess of 30% over the previous year," MRF chairman KM Mammen said. "In 2007, we reported Rs5,000 crore. Rs10,000 crore is something we are proud of, because we are the first Indian (tyre) company to achieve this." About future plans, he said MRF was seriously thinking of buying companies or plantations to offset the high import cost. "We are reviewing a lot of these wonderful ideas," he said.
|
Stating that the high import duty was having an impact on its bottom line, he said they were looking to acquire plantations in any region or acquire companies. MRF exports tyres to 65 nations. It has seven facilities in the country. However, Mammen said it was "not a right option" to set up factory outside India. "But taking over (of overseas companies) is fine. We are looking at all over the world. I would say, there are a lot of opportunities in Europe, South East Asia, China," he said. On high import duty, Mammen said, "This is ridiculous .... Raw material cost is more in India than the import of tyres. This is going on for the past 15 years and the government has not been able to take a decision. It will definitely have a big impact on the tyre companies in India," he said.

In the early afternoon, MRF was trading at around Rs6,660 per share on the Bombay Stock Exchange 0.92% up from the previous close.

User

Honda plans to export India-made cars

Honda Siel’s primary focus will be the domestic market, but it does plan to export cars to Nepal, Bangladesh, Bhutan and Sri Lanka

Honda Siel Cars India said its primary focus will be the domestic market, but it does plan to export cars to Nepal, Bangladesh, Bhutan and Sri Lanka, a top official said. The company presently exports component and engine parts from its factory in Rajasthan and expects to witness a turnover of Rs112 crore this fiscal, Honda senior vice-president (marketing and sales) Jananeswar Sen said. Presently, the company has 135 dealers in 83 cities and over 60% are located in small cities. By this fiscal-end, the company plans to have 143 dealers in 91 cities.

Honda has launched its new car, Brio, in the Kerala market. There was a very good response to the new car in the cities where it has been launched and in the first 10 days, at least 2,000 enquiries were received, Sen said.

On the sales target, he said, "Our initial start will be slow. Due to the earthquake and tsunami in Japan, things are yet to be normalised in Japan, so we are yet to receive normal delivery of critical parts."

Honda Brio is manufactured at HSCI's facility at Greater Noida, with a localisation level of over 80%, Honda Zonal Head for Sales (South) Thushar Walkankar said. The new car is available in four variants and the ex-showroom prices are: EMT (Rs3.99 lakh), SMT (Rs4.40 lakh), S(O)MT (Rs4.98 lakh) and VMT (Rs5.21 lakh). The car comes in six colours. The company's product range in the country includes the Honda Jazz, Honda City, Honda Civic and Honda Accord.

In the early afternoon, Honda SIEL was trading at around Rs340 per share on the Bombay Stock Exchange 0.01% up from the previous close.

User

ONGC expects net profit to drop by 47% to Rs10,000 crore in FY11-12

In the current scenario (where upstream firms are asked to pay one-third of the projected under-recoveries in June), the price realisation of ONGC would be $41.27 per barrel

State-owned Oil and Natural Gas Corp (ONGC) has said its net profit will drop by over 47% to below Rs10,000 crore this fiscal if the Government forces it to shell out a higher fuel subsidy. Upstream oil firms, led by ONGC, traditionally bear one-third of the actual revenue that retailers lose on selling diesel, LPG and kerosene at government-controlled prices. But this year, the share of upstream companies would not be based on the actual under-recoveries, or revenue losses, of retailers. Rather, they would be based on the projected notional under-recoveries that existed before the June fuel price increase and duty cuts. At $110 per barrel crude oil price, the revenue loss before the June price hike was estimated at Rs171,140 crore, while at today’s prices, it stands at around Rs121,140 crore.

ONGC, in a letter to the Oil Ministry, said the one-third share of upstream companies as per the June estimates works out to Rs57,041 crore, of which ONGC’s share would be Rs47,361 crore. But if current estimates, are taken the upstream share would be Rs40,380 crore (Rs33,528 crore of ONGC).

The company gives discounts on the crude oil it sells to Indian Oil, Bharat Petroleum and Hindustan Petroleum to part meet the revenue loss retailers incur on subsidised fuel sales.

“In such a scenario (where upstream firms are asked to pay one-third of the projected under-recoveries in June), the price realisation of ONGC would be $41.27 per barrel,” it wrote.

ONGC said it expects to register a net profit of Rs15,000 crore in the 2011-12 fiscal, based on a net crude oil price realisation of $55 per barrel. “In case realisation is of the order of $40 per barrel, the profit-after-tax would be below Rs10,000 crore.”

It had in 2010-11 reported a net profit of Rs18,924 crore. ONGC said a lower profit would hurt its Rs30,000 crore planned capital expenditure and also impact plans to provide another Rs7,500 crore in financial support to its overseas subsidiary in 2011-12.

In the early afternoon, ONGC was trading at around Rs269.15 per share on the Bombay Stock Exchange, 1.68% down from the previous close.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)