Tata Motors hikes prices by Rs12,000

“The high input costs have been impacting us for quite some time. We have decided to pass on some burden to our customers:” Tata Motors

Tata Motors said that it has increased the prices of its passenger vehicles, except small car Nano and premium crossover Aria, by up to Rs12,000 to mitigate the impact of high input costs. The company said the price hike has been with effect from 9 February 2012 across the country.

“The high input costs have been impacting us for quite some time. We have decided to pass on some burden to our customers. The quantum of the hike will vary between Rs7,000 and Rs12,000 depending on the model,” a company spokesperson told PTI.

Last month, other passenger vehicle majors like Maruti Suzuki and General Motors increased the prices of their various models by up to Rs17,000 to offset the rising input costs and the impact of currency fluctuation.

Maruti Suzuki India hiked the prices of its vehicles, except for entry-level sedan DZire, by between 0.3% and 3.4%. This translated into a minimum increase of Rs2,400 on the SX4 sedan and a maximum of Rs17,000 on the diesel variant of its Swift hatchback.

Similarly, General Motors India also increased the product prices by between 0.5% and 1.75% for models including the Spark, Beat, Cruze and Tavera, translating into an increase ranging from Rs3,000 to Rs15,000.

GM India, however, left the prices of its Aveo, Aveo UVA, Optra and Captiva SUV models unchanged.

Toyota Kirloskar Motor had also hiked the prices of its different models, including the Liva and Etios, between 0.75% and 3% from 1 January 2012 onwards. Mahindra & Mahindra increased the prices of its latest SUV, the XUV500, by up to Rs55,000.

Hyundai Motor India, which had in December 2011 said it would increase the prices of its vehicles by 1.5-2% from this year, however, has not taken the step as yet.


E-commerce companies see business growth in smaller cities

Logistics in non-metro cities and towns is an area of challenge for e-commerce companies and a major differentiating factor vis-a-vis the metro cities

With rising Internet penetration and adoption of mobile devices across the country, companies selling products and services through websites are looking at smaller cities for expanding business.

“Non-metros play a vital role in the growth of e-commerce segment in the country primarily due to ease of purchase... The convenience of shopping online and access to best international brands is driving this growth among non-metro markets,” says Mukesh Bansal, founder and CEO, Myntra.com, an online shopping portal.

According to eBay Census 2011, a study on the Indian e-commerce landscape released last year, as many as 3,311 Indian cities shopped online between 1 July 2010 and 30 June 2011. Of this, over 1,267 were non-metro cities.

“Metros have a dominant share of purchases, with Tier 2 and 3 cities catching up fast. Metros contributed 51% of all e-commerce transactions while Tier 2 and 3 cities contributed about 40% and rural India 9%,” the survey said.

While consumers in the metros buy products and services mainly because of convenience, those in the non-metros buy due to non-availability of products.
Big brands don’t find it viable to open shop in small towns and e-commerce is the perfect route to deliver their products to those whose can afford from non-metros, it said.

Echoing a similar view, Siddharth Puri, senior marketing manager, Fetise.com, an online shopping community for men said, “Fetise get 500-700 orders a day on an average of which about 150-220 are from the non-metros.”

Online shopping portals expect the number of orders coming in from these areas to go up further helped by rising Internet penetration, growing purchasing power and adoption of mobile devices.

“Use of mobile Internet and smart phones has definitely given a push to this sector as the access is available to the consumers on their fingertips,” Mr Puri said.

According to a Google report, over 70% of search happened in non-metros and over all 50 million people logged on to the Internet from mobile phones in 2011.
Valyoo Technologies, which runs three e-commerce site—Lenskart.com, Bagskart.com and Watchkart.com, online shoe store Fashos.com and consumer durables selling website Greendust.com—gets around 50%, 70% and 28% of its business from non-metro cities respectively and have plans to scale their business in these area.

However, logistics in non-metro cities and towns is an area of challenge for these companies and a major differentiating factor vis-a-vis the metro cities.

“The market size of online stores in India is about over Rs2,000 crore and is expected to grow to about Rs7,000 crore by 2015. The only challenge for an e-commerce organisation is logistics; last-mile-delivery and consumers still being hesitant to use debit or credit cards online” Mr Puri said.

E-commerce firms expect their business to boom once broadband connectivity across country as planned under National Broadband Plan is delivered and ecosystem for broadband on mobile is developed.

“Broadband connectivity is still a major hurdle for adoption of e-commerce. Once we figure out foolproof mobile shopping and payment system, I believe more people will use it for shopping than laptops or desktops.” Tradus.in MD Krishna Motukuri said.


More trouble for Dhanlaxmi Bank, says trade union

The DBOO has appealed to the new management to undo the damage done in the past three years by the previous team. This apart, the All India Bank Employees Association has appealed for merging Dhanlaxmi Bank with another public sector bank

Dhanlaxmi Bank Officers Organisation (DBOO), the trade union of the bank has hit out hard on the recently resigned managing director (MD) and chief executive officer (CEO) Amitabh Chaturvedi and its management for the poor plight of the bank and meticulously hiding all the facts from the public.

In a circular issued, DBOO said that the bank which booked profit of Rs57 crore in 2009, is about to show dismal result for the December 2011 quarter. The union has also refuted all stories published in the media crediting Mr Chaturvedi for the growth of the bank.

According to DBOO, “The leading business daily Economic Times dated 6th
 February reported the plight of the ex-MD who had increased the total business from Rs6,500 crore to Rs24,000 crore, who raised the pay  and  performance  linked bonus,  resigning from the bank  embittered  by the actions of notorious trade unions!  Shed your crocodile tears for the MD. What a brilliant show management.”

It adds that, “The former MD, Amitabh Chaturvedi was even claiming the credit for 100% core banking  implementation which in fact happened years before he took  charge of the bank. How cleverly the management hid the continually dwindling profit of the bank from public view.”

The circular states that the MD’s decision to resign ahead of its quarterly results announcement is a sign of more trouble for the bank. In fact, the DBOO also accused the media management team for projecting a growth story when the bank was in dire straits.  

Contrary to the media stories stating that Mr Chaturvedi’s decided to quit due to his difference with the management, DBOO says that, “…the apex bank, RBI (Reserve Bank of India), showed its displeasure on the MD after getting  the memorandum  from the AIBOC regarding the health of the bank. It is common man’s guess that the MD has put in his papers due to the intervention of RBI because of his non-performance.  However, he is still using his clout with the media to project himself as a martyr. A post mortem is needed to uncover the full dealings of the MD and his associates, right from October 2008 onwards.”

Moneylife was the first one to report the bruising battle between Dhanlaxmi Bank and its union. The All-India Bank Officers Confederation (AIBOC) alleged that the bank has manipulated accounts and provisioning, has a mismatch in asset-liability resources, maintains poor capital adequacy ratio and has huge dependence on call money borrowing. It has also accused the bank for ignoring social banking and financial inclusion. Subsequently, last year in November, the RBI conducted an inspection and issued a 15-point Monitorable Action Plan (MAP) to Dhanlaxmi Bank.

The trade union has also questioned the RBI for its inaction. “How could the banking regulator ignore the “early warning signals” and let the mismanagement continue for this long? Why this sudden reversal of fortunes:  The bank that was making a profit till the last quarter, report a dismal performance, all of a sudden?” the DBOO said in a statement.

The DBOO has appealed to the new management to undo the damage done in the past three years by the previous team. This apart, the All India Bank Employees Association (AIBEA) has appealed for merging Dhanlaxmi Bank with another public sector bank.



K B Patil

5 years ago

Truly, CEOs all over the world are given special treatment by the media. While the actions of politicians are scrutinised minutely, even when corporate honchos resign after making a mess of things and rendering several people jobless, their actions do not come under the scanner. They bail out with a golden parachute! For instance, Essar Steel's promoters made a mess of the steel business (when the industry was booming) and booted out minority shareholders by a farcical process of delisting. Yet, you have the business magazines sympathising with them over their recent problems.


5 years ago

Why AIBEA appeal for merger with other public sector bank? why not a private sector bank?? May be they will make them to work more!!!

S Prabhu

5 years ago

No staff accountability. MD and the top management made crores of rupees on salary, bonus and esops. How long this will continue? Why RBI wants to issue more licenses instead of consolidations? Why it takes long years for Regulatory Authorities to understand the internal situations of the bank. Its time now for the RBI to appoint its nominee director on each banks board and make them accountable. Dhanlaxmi is not the exception, there are other private banks who adopted the mass malpractices in accounting under the able guidance of foreign consulting firms and their NPA levels are coming down and down on the paper, but the actual situation GOD and the consulting firm knows.

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



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)