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    Tata Motors Should Be More Mature by 2020: Ratan Tata (CMP 980)

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    Ratan Tata says that by 2020, Tata Motors should be a more mature company capable of developing reliable products with good finish and technology. Currently, Tata Motors may still be sub-scale compared to international standards. Tata aims to bring world-class products to meet customer needs and improve build quality. However, developing critical components locally is time consuming and expensive due to high import duties. Tata hopes reducing import tariffs could allow Tata Motors to buy overseas components instead of developing everything internally.

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    Tata Motors Should Be More Mature by 2020: Ratan Tata (CMP 980)

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    venkatrao_gv
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    Ratan Tata says that by 2020, Tata Motors should be a more mature company capable of developing reliable products with good finish and technology. Currently, Tata Motors may still be sub-scale compared to international standards. Tata aims to bring world-class products to meet customer needs and improve build quality. However, developing critical components locally is time consuming and expensive due to high import duties. Tata hopes reducing import tariffs could allow Tata Motors to buy overseas components instead of developing everything internally.

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    GV-20-6-11

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    Ratan Tata says that by 2020, Tata Motors should be a more mature company capable of developing reliable products with good finish and technology. Currently, Tata Motors may still be sub-scale compared to international standards. Tata aims to bring world-class products to meet customer needs and improve build quality. However, developing critical components locally is time consuming and expensive due to high import duties. Tata hopes reducing import tariffs could allow Tata Motors to buy overseas components instead of developing everything internally.

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views6 pages

    Tata Motors Should Be More Mature by 2020: Ratan Tata (CMP 980)

    Uploaded by

    venkatrao_gv
    Ratan Tata says that by 2020, Tata Motors should be a more mature company capable of developing reliable products with good finish and technology. Currently, Tata Motors may still be sub-scale compared to international standards. Tata aims to bring world-class products to meet customer needs and improve build quality. However, developing critical components locally is time consuming and expensive due to high import duties. Tata hopes reducing import tariffs could allow Tata Motors to buy overseas components instead of developing everything internally.

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    GV-20-6-11

    19 Jun, 2011, 10.40AM IST,PTI

    Tata Motors should be more mature by 2020: Ratan Tata (CMP=980)


    NEW DELHI: Tata group chief Ratan Tata has said by 2020 Tata Motors should be "more mature" and have the capability to develop products with "reliability, finish and technology" as it "may still be sub-scale by international standards" at present. In an interview to market research firm JD Power's report on Indian automobile industry, Tata said the homegrown auto major wants to bring in world-class products in the next decade to meet customers' needs. "I think we have economies of scale in some of the segments in which we operate, but on the whole, we may still be sub-scale by international standards. "My aim for Tata Motors is that we should have the capability of developing good automobiles in terms of reliability, finish and technology," Tata said in 'India Automotive 2020: The Next Giant from Asia'. He said the company's endeavour to develop products with better technology has been hampered by the abnormally high prices of critical components such as automatic transmissions. The company is also finding it economically unviable to import the crucial components, which are not easily available in India, because of very high customs duty. "So we have to keep on developing these components ourselves, which is very time consuming and is not our core business. We want to bring in world-class products and have been working hard to improve the build quality and reliability of our vehicles," he added. For this purpose, Tata favoured cutting import duties on vehicles and components coming from overseas. "If the tariff barriers go down, we may have the luxury of buying a product to fill the gap in our range, and not develop a product, which is very expensive and wasteful for us," he said. He hoped that by 2020 Tata Motors should be "a more mature company with better products, newer technology and wider range of products to suit customers' needs". When asked about the role that the British subsidiary Jaguar Land Rover is likely to play in Tata Motors' growth, the industrialist said there is a possibility of "great synergy" between the two firms in engineering and development area. "We are looking at joint engine projects and common platforms for the future, which would help
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    to improve economies of scale. However, the brands will remain distinct in terms of their positioning and retail strategy," Tata said. Going along in the future, JLR will find an inexpensive way of doing something, while Tata Motors will find a better way of doing something, he added.

    19 Jun, 2011, 07.14PM IST,PTI

    BOI looking to enter MF sector, in talks with Bharti AXA (CMP=409)


    PADGHA (Maharashtra): Public sector lender Bank of India today said it is in talks with Bharti Axa and two other asset management companies for an entry into the mutual funds business and hopes to seal the deal before end September. "We are in talks with Bharti AXA and two other companies ...we will announce it before end of the next quarter," Chairman and Managing Director, Alok Misra, told reporters. Bharti, which exited life insurance business earlier this month by selling off its stake in Bharti Axa Life Insurance to Reliance Industries, is also tipped to be looking at options of exiting other non-core businesses, to concentrate on telecom and retail. A senior Bank of India official said it makes sense to acquire an operational business than start something which will take two years to build up. The Mumbai-headquartered Bank of India has appointed consultancy firm Ernst and Young for advising it on the takeover of an existing player, the official added. Bank of India hopes to firm up its non interest income through an entry into the MF business. It will use its network of over 3,500 branches nationally to distribute its products.

    GV-20-6-11

    BHEL to hire 25,000 in next 5 years


    NEW DELHI: In one of the most aggressive recruitment plan in the public sector, state-run power equipment maker BHEL will hire 25,000 people over the next five years to take its total headcount to 55,000, a top company executive said today. "We have already hired 15,000 people in the past four years and we aim to recruit 5,000 people every year for the next five years," CMD BHEL B P Rao told PTI in an interview. The 5,000 new recruitment would comprise 1,000 engineers, 1,000 diploma holder and 2,000 ITI (Industrial Training Institute) graduates among others, he said. BHEL which is engaged in building power plant equipments is in process to ramp up the manufacturing capacity to 20,000 MW by March, 2012 from the current 15,000 MW and therefore requires manpower to achieve the target. Asked about the attrition rate in the PSU, Rao said BHEL has been least affected by the trend as not many people have exited the PSU for private companies. "..infact people who had left BHEL some years ago, they have come back to us." The equipment maker currently has a manpower of 46,000 and it plans to take it to about 55,000 in the next five years as 2,500 people are expected to retire from the company annually during the period. With its order book at worth ocer Rs 1.64 lakh crore, the cash-rich company is bullish on its business plans and is mulling to participate in the state power projects by way of picking equity. This will give company new revenue generation stream as well as new orders for equipments. Besides, the company is also looking at opportunities in the overseas market and has earmarked Rs 9,000 crore for this and for equity participation in the state power projects. It has appointed a team of consultants from Kotak Mahindra, Merrill Lynch , Ernst & Young, which would evaluate the opportunities available for the company abroad. BHEL holds stake in various thermal power projects of the state generation utilities in the country including those from Karnataka, Maharashtra and Madhya Pradesh. Meanwhile, the company is also seeking advice from research firm Crisil for setting up a non-banking finance company (NBFC) mainly with a purpose of funding power projects. Crisil had prepared a report on the blueprint of the NBFC and has submitted to the Company's Board. "The Board of Directors have met, they have asked for some changes and the proposal (NBFC) would again go to the Board in the next two months," Rao added. 3

    GV-20-6-11

    Two killed, three injured in blast at United Phosphorus


    On Sunday 19 June 2011, 8:31 PM

    Ahmedabad, Jun 19 (PTI) Two persons died and three others were injured in an explosion at the plant of United Phosphorus at Ankleshwar in Bharuch district, police said today. "Two company workers died when a reactor in unit-II of the plant exploded last evening. Three others who sustained burn injuries were admitted to the district hospital," they said. According to police, unit-II of the company, which makes crop protection products, was engaged in purifying chemicals and used a reactor for the purpose. A case has been registered and investigations are underway.

    Reliance yearns for old glory days


    Expectations can be a heavy burden to carry, with the chances of disappointment rising well in proportion. That perhaps explains why RIL, with 11% weightage in the index, has plunged to two year lows on bourses. The company was once known for bold moves, identifying trends and creating new markets. However, at present, it is struggling hard to propel growth beyond cycles. The moves like buying a stake in East India Hotels and a Bharti-Axa joint venture have failed to convince the markets. Some blame it on the lack of focus in areas other than core energy. The company has reported a decline in the gas output from KG D6 basin. What has made the matters worse is the slew of controversies in recent times. The company has been alleged of inflating bills on investments made in the D6 block and multi-year insider-trading. So what is the future going ahead? A recovery in chemical and refining cycles may help. But it can be hardly counted on for value addition. It's time that it is given a facelift - a change in the business model for which acquisition seems to be the key. It further needs to clarify its exploration and production prospects and find avenues to invest its cash in areas that let the company grow and relive the glory it has enjoyed in the past. But even with that getting rid of unethical practices would be paramount.
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    GV-20-6-11 RIL hires SBI, other banks to raise over USD 1 bn loan
    New Delhi, June 17 (PTI) Billionaire industrialist Mukesh Ambani-led Reliance Industries is believed to have hired banking majors SBI, Bank of America and Citigroup among others to raise debt of about USD 1.1 billion (about Rs 5,000 crore). The energy-to-retail conglomerate plans to utilise the fresh five-year term loan to refinance its existing higher interest rate debts, sources said. When contacted, a company spokesperson did not comment on the debt raising plans. The banks hired for raising USD 1.1 billion of loans include SBI, Stanchart, Bank of America, RBS, HSBC, ANZ Bank, Bank of Nova Scotia, Bank of Tokyo Mitsubishi UFJ, Barclays, BNP Paribas, Citigroup, DBS and Sumitomo Mitsui. Earlier this month, Chairman and MD Mukesh Ambani said at the company''s AGM that RIL would become debt-free on net basis in the current financial year ending March 2012. RIL had an outstanding debt of Rs 67,397 crore (USD 15.1 billion) as of March 31, 2011, as against Rs 62,495 crore (USD 13.9 billion) a year ago. At the same time, RIL had cash and cash-equivalents of Rs 42,393 crore (USD 9.5 billion) as on March 31 this year, which was nearly double the level seen a year ago. The company began a process last month to raise fresh loans worth about USD 1.5 billion. Out of this, loans worth about USD 1.1 billion are for repaying its existing loans maturing in next two years, while the company would also look at further USD 400-500 million of fresh borrowings from abroad. Last year in October, RIL had raised USD 1.5 billion for the first time through bonds denominated in US dollars. While it raised USD one billion through 10-year bonds, another USD 500 million were arranged through sale of 30-year bonds. These funds were raised through RIL''s wholly-owned subsidiary Reliance Holding USA Inc. This USD 1.5 billion bond sale was the company''s first such bond issue after 13 years. Besides, it was the largest ever public market offshore bond offering by RIL and largest ever corporate bond from India. This debt raising exercise was followed by plans to raise funds through sale of bonds in global markets by other Indian companies. These companies included the likes of Anil Ambani group firm Reliance Communications, ICICI Bank, Axis Bank, Essar Energy, JSW Steel and IDBI Bank.
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