Indian Economy-News & Updates

[cirr]

Annual auto sales witness first decline in 11 years

Last updated on: January 09, 2014 15:40 IST

Annual car sales in India declined for the first time in 11 years in 2013, posting a 9.59 per cent dip, as the auto industry reeled under a prolonged demand slump because of the economic slowdown.

According to the Society of Indian Automobile Industry, domestic car sales last year fell to 18,07,011 units from 19,98,703 units in the previous year.

"The decline in annual car sales that we witnessed in 2013 was the first time after 2002.

The negative sentiments have deepened due to the current state of the economy," SIAM Director General Vishnu Mathur told reporters in New Delhi.

He said high inflation, fuel prices and interest rates -- which resulted in high cost of ownership -- have affected sentiment.

Annual auto sales witness first decline in 11 years - Rediff.com Business

 

[Abhishek_]

TCS maintains growth momentum in Q3 as net rises 50%

Tata Consultancy Services (TCS), the country’s largest software exporter, on Thursday, reported a net profit of Rs. 5,333 crore for the third quarter ended December 2013, a growth of 50 per cent over the year-ago period.

Revenue for the period grew 32.5 per cent to Rs. 21,294 crore, with operating profit up 44.6 per cent at Rs. 6,337 crore, and the operating margin rising 249 basis points to 29.8 per cent. Net profit margin rose 296 basis points during the quarter to 25 per cent while volumes rose 1.8 per cent.

“It was an excellent quarter with strong international demand for our services and discipline in execution that has helped us maintain momentum and post robust growth in volumes as well as realization,” said N. Chandrasekaran, CEO & MD, TCS, while addressing a press conference here on Thursday.

The company said growth in the third quarter was driven by industries like life science & healthcare, manufacturing, media, travel and telecom. “India business suffered from volatility and declined sequentially by 9 per cent,” Mr. Chandrasekaran said, adding that the India market would be uncertain till the June or September quarter considering the likely elections. “I expect volatility and no major growth till then.”

On TCS’ deal pipeline, he said the customer traction was good in all bands with a “very good deal flow. We won eight large deals ($50 million plus) during the quarter.”

Digital tech opportunities

TCS expects digital spends to increase across-the-board . “The digital business will run into a few billion dollars for TCS in the next 2-3 years. It will be a driver of growth, value and a big positive for us over the next few years. We foresee large scale engagements in the digital area and as they increase, there will also be opportunities for pricing upticks,” Mr. Chandrasekaran said, adding, “with digital technologies rapidly changing the way an enterprise operates in multiple dimensions, our continuous investments positions us well to help customers re-imagine their business. The addressable market for us will increase year-on-year and we are well positioned to partner clients in the digital space.”

Raising hiring target

During the quarter, there was a total gross addition of 14,662 people (net 5,463 employees), taking employee strength to 2,90,713. The utilization rate (excluding trainees) was at 84.3 per cent (including trainees at 77.5 per cent). Attrition was stable at 10.9 per cent, with IT attrition at 10.3.

Ajoy Mukherjee, Executive VP and Global Head, Human Resources, TCS, said the company was increasing its hiring target for 2013-14 by 5,000 employees to 55,000 professionals, “to support business growth.”

“Based on initial discussions with our customers, we believe 2014 will be a much stronger year for us than 2013 and the prospects are very bright as customers execute their business plans in a relatively stable environment.” the TCS chief said.

On the Bombay Stock Exchange, the TCS stock opened at the day’s high of Rs. 2,380, fell to a low of Rs. 2,321.1 and closed trading at Rs. 2,351.35, down Rs. 2.9 (0.12 per cent).

TCS maintains growth momentum in Q3 as net rises 50% - The Hindu

 

[Abhishek_]

New land policy unveiled for major ports

The Shipping Ministry on Thursday unveiled the much-awaited land policy guidelines for 12 major ports in the country that will help them to undertake various development projects on a tender-cum-auction basis.

Briefing reporters, Chennai Port Trust chairman Atulya Misra said the new policy guidelines provides for a transparent mechanism for leasing and licensing of land in possession of major ports inside the custom bounded areas for short term licenses (from 11 months to five years) and outside the custom bounded areas on long term leases (for a maximum of 30 years).

“With the approval of the Union Cabinet, a major hurdle that prevented the growth of major ports had been removed. Till recently, major ports were not permitted to allot lands on long term licenses or leases, whereas the minor ports were not having such problems. The new policy would enable us to become competitive. Even those who do not have exposure to port activities can take part in port projects,” he said.

Currently, the Chennai Port has 200 acres in custom bound area and can be allotted through the new method. Having exhausted the available land, the Ennore Port is in the process of acquiring 735 acres from the Salt department for expansion activities.

One of the salient features of the new policy states that the land can be allotted to government agencies, public sector undertakings and statutory authorities on nomination basis. It cannot be given to religious institutions or political institutions. The policy also provides guidelines for mortgages, sub-leases, transfer and right of way permissions.

New land policy unveiled for major ports - The Hindu

 

[Abhishek_]

SAIL plans Rs. 60,000-cr expansion in Bokaro in second phase

Months ahead of completing Bokaro plant’s capacity addition to 5.7 million tonnes (MT), Steel Authority of India Ltd (SAIL) on Monday said it plans to raise it further by another 10 MTPA with an investment of Rs 60,000 crore in the second phase.

The investment, which is excluding the ongoing Rs.6,000-crore outlay for the Bokaro plant, would be the highest among five integrated steel mills where the company plans expansions in order to take overall capacity to 50 MTPA by 2025.

SAIL has around 14 MTPA hot metal capacities now. With the current phase of ongoing expansion at a cost of Rs 72,000 crore, this would go up to 24 MTPA.

The additional 26 MTPA capacity creation to meet the target of 50 MTPA by 2025 needs Rs 1.7 lakh crore investments in the second phase.

“This 26 MTPA addition in about 12 years will be financed through internal accruals and market borrowings,” Chairman C S Verma said.

He said SAIL is preparing a roadmap for expansions in other plants in the next phase of expansion.

SAIL’s plan to ramp up capacity to 50 MTPA is in line with the Government’s vision to augment domestic crude steel production capacity from 90 MTPA to 300 MTPA by 2025.

The state-owned steel maker is pinning hopes on rising steel demand from the country’s rural area to support its capacity addition.

“There is a lot of potential for growth of the steel sector in India as our per capita domestic steel consumption of 55 kgs per year is lower compared to global average,” he said.

The planned $ one trillion investment in infrastructure sector during the 12th Plan Period was expected to be a big catalyst for growth in the steel sector, he added.

SAIL plans Rs. 60,000-cr expansion in Bokaro in second phase - The Hindu

 

[luckych]

Intel to invest over $120mn to expand R&D center in Bangalore

The new facility will consolidate its workforce spread across different sites in Bangalore

BANGALORE, INDIA: Even when it has announced a 5 percent lay-off in its global headcount, Intel Corp. today announced the expansion of its R&D facility in Bangalore with an investment of over $120 million.

Though Intel doesn't have any plans to increase its 4,500 headcount for the foreseeable future, the new facility will consolidate its workforce spread across different sites in the India's Silicon Valley.

The Bangalore site, incidentally, is the second biggest non-manufacturing facility of Intel outside US.

Intel India president, Kumud Srinivasan, said that Intel has already invested over $2 billion in India. The new facility, being developed at a cost of $120 million, will come up on 18 acers of land and comprise of two buildings. The estimated completion date of SRR3 is early to mid 2015.

Srinivasan said: "The India center makes significant contributions to the entire product portfolio offered by Intel. Our new capacity in Bangalore will give us the right resources to make a meaningful difference as the company moves into exciting areas like the Internet of Things. This move re-inforces Intel's commitment to invest and grow in India."

On the layoff, the Intel India president said the 5 percent cut will be applicable globally, but it would not have any signification impact as even the annual rate of attrition was around 5-6 per cent. The layoff is primarily aimed at shifting the headcount from low priority areas she added.

Intel India has been involved across servers, PCs like All in Ones, 2 in 1s, smartphones, tablets and the Internet of Things. The core competencies of Intel India include CPU, System-on-a chip, platform, software and graphics. Intel's upcoming facility will be a global center of excellence for chip design.

Though Intel doesn't have any plans to increase its 4,500 headcount for the foreseeable future, the new facility will consolidate its workforce spread across different sites in Bangalore.

Srinivasan said that Intel has already invested over $2 billion in India. The new Bangalore facility will come up on 18 acers of land and comprise of two buildings. The estimated completion date of the SRR3 is early- to mid-2015.

Intel to invest over $120mn to expand R&D center in Bangalore - CIOL

 

[Chanakya's_Chant]

India remains world's 4th largest steel producer in 2013

India was the fourth largest steel maker in the previous three years as well with a total output of 77.3 MT 2012, 73.6 MT in 2011 and 69 MT in 2010. It had clinched the third spot in 2009. (Representative image)

NEW DELHI: India's position in world's steel production remained unchanged at the fourth slot in 2013 with an output of 81.2 million tonnes.

This is despite India logging the second highest growth of 5.1 per cent among the top five producers.

There was no change in the order of top three steel producing nations with China, Japan and the US retaining their slots in the respective order in 2013, the World Steel Association (WSA) data revealed on Thursday.

India was the fourth largest steel maker in the previous three years as well with a total output of 77.3 MT 2012, 73.6 MT in 2011 and 69 MT in 2010. It had clinched the third spot in 2009.

"World crude steel production reached 1,607 MT for 2013, up by 3.5 per cent compared to 2012. The growth came mainly from Asia and the Middle East while crude steel production in all other regions decreased in 2013 compared to 2012," WSA said.

Recording a growth of six per cent, Asia produced 1,081 MT steel in 2013. The region's share of world steel production increased slightly from 65.7 per cent in 2012 to 67.3 per cent in 2013.

Country-wise, China produced 779 MT, an increase of 7.5 per cent over 2012. Its share in world crude steel production increased from 46.7 per cent in 2012 to 48.5 per cent in 2013. Japan produced 110.57 MT and South Korea 66 MT in 2013.

The Middle East produced 26.3 MT steel, up by 6.8 per cent, over 24.7 MT production a year ago.

"The EU recorded a decrease of 1.8 per cent compared to 2012, producing 165.6 MT of crude steel in 2013," WSA said, adding the production in North America was 119.3 MT, a dip of 1.9 per cent. The US produced 87 MT, down by two per cent over 2012.

CIS countries produced 109 MT steel during the year, down 1.8 per cent. Russian production was at 69.4 MT, a decrease of 1.5 per cent over 2012. South America's production was at 46 MT, down 0.8 per cent.​

Source:- India remains world's 4th largest steel producer in 2013 - The Economic Times​

 

[kbd-raaf]

China produces 779MT by itself -.-

Over capacity much?

 

[45'22']

we should produce more.......5 percent increase its not enuff

 

[Chanakya's_Chant]

China produces 779MT by itself -.-

Over capacity much?

For China, Too Much Steel Isn't Enough - Businessweek

we should produce more.......5 percent increase its not enuff

Thanks to the recent economic slowdown - At times the IIP (Index of Industrial Production) even went negative - but still it was really good to see India logging the second highest growth of 5.1 per cent among the top five producers. As now we are out of the woods and the economy is in recovery mode I am pretty convinced that we got to give a tough competition to United States this year!

 

[dontsuspendme]

And still we import steel!!!

 

[Chinese-Dragon]

China produces 779MT by itself -.-

Over capacity much?

Over capacity?

Do you know how much more we need to build, to get our infrastructure/housing per capita, up to the level of any developed country?

Or do you think we should just sit on our low per capita without building more? And stay as a developing country forever?

We're trying to become a developed country. For 1+ billion people we need an insane amount of production.

 

[kbd-raaf]

Over capacity?

Do you know how much more we need to build, to get our infrastructure/housing per capita, up to the level of any developed country?

Or do you think we should just sit on our low per capita without building more? And stay as a developing country forever?

We're trying to become a developed country. For 1+ billion people we need an insane amount of production.

Yes, yes I know why it's being done

But following the infrastructure boom all the plants are no longer financially viable. Mind selling some of those steel stocks to India for dirt cheap prices?

 

[Chinese-Dragon]

Yes, yes I know why it's being done

But following the infrastructure boom all the plants are no longer financially viable. Mind selling some of those steel stocks to India for dirt cheap prices?

If the day comes when we no longer need it, I don't see any problem with selling it.

However that will take a while.

For example, the USA has about 900 vehicles per 1000 people. China has 83 vehicles per 1000 people.

List of countries by vehicles per capita - Wikipedia, the free encyclopedia

The only chance for us to become a developed nation in the next 10-20 years is to produce like crazy. It is ridiculous that the USA has significantly more railway and road infrastructure than China even though their population is so much smaller!

 

[kbd-raaf]

If the day comes when we no longer need it, I don't see any problem with selling it.

However that will take a while.

For example, the USA has about 900 vehicles per 1000 people. China has 83 vehicles per 1000 people.

List of countries by vehicles per capita - Wikipedia, the free encyclopedia

The only chance for us to become a developed nation in the next 10-20 years is to produce like crazy. It is ridiculous that the USA has significantly more railway and road infrastructure than China even though their population is so much smaller!

I don't know about China but in the US, public transport is crap. You need to have a car to get around. Do you really want that to happen in China?

To be honest; I don't want that to happen in India.

I think our planet could barely sustain a developed US and China but not a developed US, China and India.

I've been trying to analyse how China is able to finance their infrastructure with cheap and easy credit to it's companies.

Imho, it comes from all loans being government backed. Which in turn has massive reserves to cover its ***. Good thing Chinese and Japanese banks are funding infra development in India otherwise we'd see Indian infra co.s paying massive interest for their credit-backed developments.

 

[RPK]

India can beat Japan in no time. believe me