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M&M has lost production of around 5% since October due to supply constraints, these shortages have arisen from various kinds of components
India's largest utility vehicle maker Mahindra & Mahindra Ltd said on Friday that it has suffered a production loss of around 5% due to supply constraints of components, reports PTI.
"Our company has lost production of around 5% since October due to supply constraints. The supply shortage has come from various kinds of components," Mahindra & Mahindra president for automotive sector, Pawan Goenka, told reporters at the 10th Auto Expo.
He said that the industry expects supply constraints to continue for a few more months. "This supply shortage is because of capacity constraints among auto-component makers. Nobody had expected this kind of big recovery in auto sales and this has led to this problem as suppliers had not invested to deal with this kind of volume increase," he said.
Mr Goenka said that he expects a recovery from the constraint by April this year once suppliers are able to ramp up capacity.
RIL will file a criminal complaint against a TV channel which alleged that the Ambani brothers had a role to play in the accidental death of the former AP chief minister. The AP incident has once again raised questions about the credibility and responsibility of the media.
Reliance Industries Ltd (RIL) has said that it will file a criminal complaint against TV5 channel and has also asked the Union and Andhra Pradesh (AP) governments to initiate an immediate investigation into the incident.
On Thursday, a number of RIL outlets were ransacked following a news report on local channel TV5 which alleged that the Ambani brothers had a role in the accidental death of AP chief minister YS Rajasekhara Reddy that shook the nation last year.
According to a PTI report, the AP police have already begun a probe and are collecting evidence, including video tapes of the news footage beamed by TV5 that alleged that the Ambani brothers were behind the helicopter crash in which Mr Reddy was killed on 2 September 2009.
In a release, RIL said, “We are shocked and outraged at the false, malicious, motivated and libellous news on TV5 channel concerning the fatal mishap of Shri YS Rajasekhara Reddy's helicopter. We condemn, rebut and reject the allegation with the contempt it deserves. It is the dirty handiwork of our business rivals in cahoots with TV5."
Speaking about the attacks on its outlets, a spokesperson of RIL said, “This (the dirty handiwork of its business rivals) is also evident from the well-coordinated attacks on RIL's personnel and establishments in Andhra Pradesh within minutes of the telecast by TV5. The channel has thrown all journalistic norms to the winds to malign the reputation of RIL, which has made significant investments in Andhra Pradesh to promote the development of the state and the nation."
According to a PTI report, the Anil Ambani-led Reliance group said: "A malicious and criminal disinformation campaign has been engaged into by our corporate rivals leading to substantial loss and damage to our several offices and businesses of Reliance ADA Group in Andhra Pradesh yesterday evening. We are shocked to see our corporate rivals stooping down to new levels of desperation by engaging in such imaginative and baseless rumour-mongering."
Telugu channel TV5 first produced a report based on an unsubstantiated news report published by a little-known website exiledonline.com. Following this, a couple of other Telugu news channels also started airing the same news.
The website in question, exiledonline.com (and especially an author named Mark Ames) has been writing about Lawrence (Larry) Summers, the director of the US National Economic Council since the past few years. Before joining the Obama administration, Mr Summers was working on the international advisory board of RIL.
The writer, Mr Ames, took a dig at Reliance. One of Mr Ames' articles called Mukesh Ambani as "Larry Summers's Ex-Boss, a Billionaire with a Blood Feud". While targeting Mr Summers, the writer Mark Ames and the little-known website had been attacking the Ambani family for their wealth.
In one of his articles, Mr Ames wrote: "Mukesh has what Larry wants—money and power; and Larry has what Mukesh wants—the connections in the world’s most powerful economy to 'gain a leg up on his rivals'. And if you think that Larry isn’t the kinda guy who’d befriend sleazy Third World oligarchs involved in jaw-dropping murder mysteries, then folks, you better stick around for more of this series. After all, Summers is the guy who once described the architect of the Russian privatisation scam as 'my dear friend'.”
The site exiledonline.com has since become inaccessible and its home page is giving a message "Error establishing a database connection".
In September 2009, Moneylife had reported that Mittal and Miglani had bigger plans on the anvil, which is now being seconded by some media reports
According to media reports, ArcelorMittal Netherlands BV, controlled by Lakshmi Mittal, is likely to build a one million tonne (MT) steel plant at Satarda in Maharashtra through a joint venture (JV) with Uttam Galva Steels Ltd (UGSL).
ArcelorMittal Netherlands BV, a subsidiary of ArcelorMittal, has made an open offer to raise its stake in USGL to 35% at Rs120 per share, which closed on Thursday.
Moneylife had earlier reported on 5 September 2009 that LN Mittal was likely to make an open offer to acquire another 29.4% in UGSL, making ArcelorMittal an equal partner with the Indian promoter Rajinder Miglani. Under the agreement, Mr Mittal will purchase a 5% stake (at Rs120 a share) in Uttam Galva followed by an open offer to acquire another 29.4%, making ArcelorMittal an equal partner with the Indian promoter Rajinder Miglani. Uttam Galva has a steel production capacity of 750,000 tonnes per annum.
USGL had informed bourses on 4th September about its co-promotion agreement with ArcelorMittal Netherlands BV.
Sources close to the deal had earlier told Moneylife that ArcelorMittal will partner with the Miglanis to set up a 2MT Hot Rolled Coil (HRC) project at Redi near Goa. The Miglanis already own 750 acres of land there, which once belonged to Usha Ispat, controlled by Vinay Rai. Usha Ispat had a pig iron plant at Redi, which was auctioned under the provisions of the Sarfaesi Act, 2002. The land is also located near a jetty and is close to the raw material source.
According to sources, Uttam Galva had all the permissions in place to get the project off the ground very quickly. LN Mittal will be the dominant partner in the Goa project with a 70% holding while Miglani will own 30% to start with.
With this partnership, Uttam Galva, a standalone galvaniser, has entered the big league of steel players in India.
According to media reports, State Bank of India (SBI), Punjab National Bank, Canara Bank and IDBI Bank Ltd will fund the project with the lead syndicator being SBI. So far Rs2,100 crore has been sanctioned and the rest will be funded by promoters through equity.