Toyota Kirloskar said here is no stability of diesel pricing policy in India and a company like us cannot keep on changing strategy
New Delhi: Toyota Kirloskar Motor's (TKM) plan to set up a diesel engine plant is held up as it is unable to convince its Japanese parent because of the lack of clarity in pricing policy of the fuel in India, reports PTI.
"If you look at the market dynamics in India there is an increase in the demand for diesel. We have been conducting a feasibility study on diesel engine manufacturing in India but are unable to convince our headquarter," TKM deputy managing director (Marketing) Sandeep Singh told reporters.
"There is no stability of diesel pricing policy and a company like us cannot keep on changing strategy...it is about going and asking for changing of plan and ask for investment in a new technology," he added.
In April, TKM is understood to have put forward a proposal to set up the plant in India after the Budget for 2012-13 spared diesel vehicles from additional taxes.
There has been demand to increase taxes of diesel passenger vehicles from different quarters to prevent usage of the subsidised fuel for "luxury". However, the automobile industry has been asking the government to deregulate diesel price in line with petrol.
When asked how long will the company take to decide on setting of the diesel engine plant, Singh said: "We cannot give a timeline...the feasibility study is still going on."
He said the company has started petrol engine production from its Bangalore plant, which has a total capacity of one lakh units annually.
The plant has been set up at an investment of Rs500 crore. In the first year the company is looking at producing about 30,000 to 35,000 units of engines depending on market demand.
"At present 22 per cent of the total monthly sales of about 7,000 units of Etios and Liva, is petrol and the rest diesel."
Asked about launching of Toyota's luxury brand Lexus in India, Singh said: "There is an apprehension about the increase in customs duty...we are still studying the market and we hope to get a clear direction by the end of this year."
The company had earlier said it would bring the brand in India by 2013 and planned to set up exclusive Lexus showrooms to sell cars and sports utility vehicles of the brand.
Toyota Motor is also planning to launch eight new products, including Etios, in the mid-term.
"We will launch eight new products in the emerging markets and India will be a prominent one. The products will be introduced in the next 6-8 years," Toyota Motor Asia Pacific Executive Vice President Vince Socco said without disclosing details.
If the Nifty breaches the day’s low again we may see it finding support at 5,295
The report from PwC says the 40-plus age group will be the largest potential customer base for the wellness industry
Mumbai: The domestic wellness industry that includes spas, and grooming and fitness products among others, is set to touch Rs95,000 crore in the next two years, reports PTI quoting a study by PwC.
Currently the market is estimated at Rs59,000 crore and cosmetic products contribute to nearly 60% of the segment, a PwC report, which was unveiled at a FICCI event on the industry on Friday, said.
The report says companies are looking at expanding their presence to tier II and III cities as real estate prices work in their favour.
The wellness industry, growing at a compounded annual growth rate of 18-20%, accounts for nearly 4% of the overall consumer expenditure in the country, the report claims.
"The scope in the wellness market is immense. Even a 1% increase in consumer expenditure can potentially generate an additional opportunity of Rs600 crore for wellness players," VLCC managing director Sandeep Ahuja said.
The beauty segment, largely dominated by the hair and skincare products, currently stands at Rs23,000-Rs24,500 crore is set to touch Rs40,000-41,000 crore by 2014, according to the PwC report.
The report also notes that of the Rs5,000-crore fitness and slimming market, 90% is dominated by slimming and fitness services and equipments and the rest by slimming products. The segment is expected to double in two years, it says.
With continued focus on health foods and fortified products, the report says the estimated health and wellness food and beverages segment that is growing at 12% annually will be Rs21,000 crore by 2014.
On the distribution model for this segment, the report notes that with limited reach across the country, e-commerce will become the most preferred method to interact with the customers.
About the growth drivers of the sector, the report says the 40-plus age group will be the largest potential customer base for the wellness industry. The 40-plus age group constitutes nearly 29% of the population and it is expected to touch 500 million by 2025, it adds.