In your interest.
Online Personal Finance Magazine
No beating about the bush.
The small car being developed by Bajaj Auto and marketed by the Renault-Nissan alliance in India will be smaller than Maruti Suzuki's Alto
The small car being developed by Bajaj Auto Ltd, that will be marketed by the Renault-Nissan alliance in India, will be smaller than Maruti Suzuki's Alto, according to the French car maker.
"The car that we are discussing with Bajaj is smaller than the small car. A small car like Maruti Suzuki's Alto or a 1.2-litre car is not on the table for discussion of Renault Bajaj. We are discussing a smaller car than the small car," Renault Asia Africa management committee executive vice president Katsumi Nakamura told PTI.
Last year, Renault chairman and chief executive Carlos Ghosn had announced that the Renault-Nissan combine along with Bajaj Auto have finalised an ultra low-cost product that will be launched by 2012, a year behind schedule than originally planned.
Mr Ghosn had stated that design, engineering, sourcing and manufacturing will be handled by Bajaj Auto, while marketing and selling will be looked after by the Renault-Nissan alliance. More importantly, the car will have no Bajaj brand on it.
Subsequently, Bajaj Auto managing director Rajiv Bajaj had made it public that the small car will have 70%-80% of the parts common with its two- and three-wheelers.
The small car, initially supposed to hit the market by 2011, was delayed by a year due to differences between the partners over pricing and design.
Initially, when the project was announced in 2007, Renault wanted the car to compete with Tata's Nano but Bajaj wanted to focus on delivering fuel economy.
In 2008, Nissan joined the project and a tripartite joint venture was formed with Bajaj holding 50% stake and Renault and Nissan having 25% each and envisaging to produce 400,000 units of the small car annually.
India’s second biggest supermarket operator is planning to start three additional megastores over the next three months at Mumbai, NCR and Hyderabad
Aditya Birla Retail Ltd (ABRL), India’s second biggest supermarket operator, is eying a total turnover of Rs1,600 crore this fiscal and hopes to turn earnings (interest, taxes, depreciation, and amortisation) or EBITA, positive by 2012.
“We are targeting revenue of Rs1,600 crore in this financial year. We are looking at 30%-35% growth,” said Thomas Varghese, chief executive, Aditya Birla Retail Ltd.
The Aditya Birla group’s multi-format store company is also ramping up its hyper-market brand ‘more.MEGASTORE’ and would soon launch three new stores at Thane, National Capital Region (NCR) and Hyderabad.
“We are completely astounded by some of our hyper markets in Bengaluru and Indore which have out-performed the competition. In the next three months, we have three more hyper markets coming up at Thane, NCR (Rohini) and Hyderabad (Saroornagar),” said Mr Varghese.
“ABRL has 15- 20 such properties in its bank where it plans to open the hyper markets. It hopes to see these properties on ground in the next 24 months. “We plan to put up 6 to 10 hyper-markets within this financial year and our aim is to put 10to 12 hyper markets every year. Currently we have five hyper markets,” he added.
Talking about the revenue-share deals, Mr Varghese said, “The trend (of revenue-share deals) will be more popular in metros where the shopping centre owners are assured of higher revenue so that the up-side is better. The owners are even protected by minimum guarantee.” ABRL has this kind of arrangement at some of its hypermarkets. However, the official declined to divulge the locations.
ABRL is planning to ramp up its total mall area to 10 million sq ft over the next five-six years. “We hope that in five-six years, we will be a company with 10 million sq ft. At the moment, we have close to 2 million sq ft,” said Mr Varghese.