Companies & Sectors
Unable to convince HQ for diesel engine plant: Toyota Kirloskar

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 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.


Upmove surrendered: Friday Closing Report

If the Nifty breaches the day’s low again we may see it finding support at 5,295

The market settled lower on weak global cues and selling in capital goods and banking stocks. Yesterday we had mentioned that the Nifty has to stay above the day’s low of 5,394 for the uptrend to continue. The index opened almost at this level and struggled to cross but closed below this level. If the index breaches the day’s low again we may see it finding support at 5,295. The National Stock Exchange (NSE) saw a volume of 59.36 crore shares.  This means that the market has declined on higher volumes. 
The Indian benchmarks witnessed a gap down opening on unsupportive global cues. US stocks settled lower overnight as hopes of new initiatives from the Federal Reserve receded and flash manufacturing data from China and Europe for August showed a decline. The economic slowdown, as reflected in the lower-than-expected manufacturing data, resulted in the Asian markets trading lower this morning.
Back home, the Nifty opened 22 points down at 5,393 and the Sensex started off at 17,790, down 60 points from its previous close. The indices hit their highs in initial trade with the Nifty rising to 5,400 and the Sensex going up to 17,823. However, banking, metal, auto and capital goods stocks kept the indices down in subsequent trade. 
The market witnessed a high degree of choppiness from the opening bell itself, which added to the pressure on the benchmarks. Offloading of blue chips by institutional investors kept the indices in the negative.
The benchmarks fell to their lows in noon trade as the negative opening of the key European indices added to the woes in the local market. At the lows, the Nifty went back to 5,371 and the Sensex fell to 17,725. 
The market recovered from the lows in the post-noon session on select buying, but the gains lacked strength, thus keeping the indices in red. The Nifty closed 29 points (0.53%) down at 5,387 and the Sensex settled at 17,873, down 67 points (0.38%).
The advance-decline ratio on the NSE was in favour of the losers at 494:924.
Among the broader indices, the BSE Mid-cap index declined 0.58% and the BSE Small-cap index dropped 0.78%.
The gainers in the sectoral space were BSE Fast Moving Consumer Goods (up 0.34%); BSE Healthcare (up 0.25%) and BSE Auto (up 0.05%). The top losers were BSE Realty (down 1.08%); BSE Power (down 0.80%); BSE Capital Goods (down 0.79%) and BSE Metal (down 0.57%).
The Sensex was led by Coal India (up 2.26%); ONGC (up 1.95%); Cipla, Maruti Suzuki (up 0.88% each) and Sterlite Industries (up 0.63%). The major losers on the index were Tata Steel (down 2.73%); Jindal Steel (down 2.33%); Hindalco Industries (down 1.99%); ICICI Bank (down 1.79%) and Reliance Industries (down 1.55%).
The top two A Group gainers on the BSE were—Jain Irrigation (up 5.16%) and Opto Circuits (up 5.03%).
The top two A Group losers on the BSE were—IFCI (down 16.31%) and Bajaj Finserv (down 6.79%).
The top two B Group gainers on the BSE were—Shelter Infraprojects (up 20%) and Punjab Alkalis (up 19.94%).
The top two B Group losers on the BSE were—Spectacle Infotek (down 14.86%) and Jai Mata Glass (down 14.29%).
The top Nifty gainers were ONGC (up 2.13%); Coal India (up 2.09%); BPCL (up 1.20%); Maruti Suzuki (up 1%) and Sesa Goa (up 0.95%). The top laggards were Reliance Infrastructure (down 3.01%); DLF (down 2.92%); Jaiprakash Associates (down 2.91%); Jindal Steel (down 2.78%) and Tata Steel (down 2.77%).
Markets across Asia closed down as hopes for new initiatives from the Federal Reserve to boost growth diminished and manufacturing data from China and Europe came in lower-than-expected. The tardy progress on resolving the European debt crisis also weighed on investors.
The Shanghai Composite dropped 0.99%; the Hang Seng tanked 1.25%; the Jakarta Composite declined 0.41%; the KLSE Composite fell 0.21%; the Nikkei 225 contracted 1.17%; the Straits Times slipped 0.19%; the Seoul Composite settled 1.17% down and the Taiwan Weighted lost 0.37%.
At the time of writing, the key European indices were down between 0.23% and 0.54% and the US stock futures were marginally down.
Back home, foreign institutional investors were net buyers of stocks totalling Rs311.78 crore on Thursday while domestic institutional investors were net sellers of shares amounting to Rs161.10 crore.
Reliance Power today said it has signed an agreement with China Datang Corporation for a strategic partnership to develop and operate power and energy projects both here as well as overseas, making it the first partnership between the two countries in the power sector. Reliance Power jumped 2.55% to close at Rs86.30 on the NSE.
BASF India Rs1,000-crore greenfield chemicals project at Dahej in Gujarat will be entirely funded by debt from its group company, BASF Co-ordination Centre NV. The debt will come in the form of external commercial borrowings, according to rating agency Crisil. BASF declined 2.81% to settle at Rs639.90 on the NSE.
Jyoti Structures has received domestic and export orders worth Rs1,491 crore. The orders include 400 Kv transmission lines on turnkey basis in India and Kenya, and also project related to rural electrification. The stock surged 5.79% to Rs40.20 on the NSE.


Wellness industry to reach Rs1 trillion mark by 2014: Report

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.


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