Category Archives: Markets

Markets

Tyre manufacturers fear drop in sales due to poor monsoon

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As the condition of drought is likely to hit in many parts of India, the tyre manufacturers fear that the condition will aggravate the slow trends in the market. This will also prevent the companies from taking full advantage of the plunging global rubber prices.

The tyre market has been facing a sluggish trend for the past several months with automobile companies cutting down on the production in their plants. In the month of July, the truck and bus tyre market did not show any significant improvement after a poor first quarter.

Even the shut down of the Manesar plant of Maruti Suzuki has affected the tyre market, which recorded a 4% growth in the first quarter particularly in the OEM sector. Rajiv Budhraja, the director general of Automotive Tyre Manufacturers Association said, “Now, deficient rains may adversely affect tyre consumption as the movement of grains could be hit. We were expecting August to be better than July as the festival season begins this month”.

The poor monsoon has not affected the rubber plantation where the tapping is going on. But the industry has fears that the production might be affected if the rain fails to take off in the upcoming months. The international rubber prices continue to remain soft with passive buying by China and the economic problems in Europe.

Markets

Reckitt and Benckiser to move briskly in markets of India

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British multinational consumer based goods company’s India based CEO Rakesh Kapoor said that last week that the company is looking forward to move quicker in to key BRIC emerging markets of India, Brazil, Russia and China. Kapoor added that the company is looking forward to renew emphasis on its fastest growing health and hygiene brands which include antiseptic soaps and liquid Dettol and lozenges Strepsils.

The British company also manufactures Lizol floor cleaners and Veet Hair removal cream. It said that it is going aggressive in to the emerging markets and fast growing brands to offset sluggish growth in European and North American markets.

Last September, Kapoor took over from the outgoing CEO Bart Becht. The present CEO informed that the company’s half year earnings rose 2%. Kapoor in a statement said, “These results and our innovations underpin our confidence in the 2012 target of 200 bps above our market growth rate of 1-2%”. In January this year Reckitt and Benckiser upgraded India to its regional headquarters for southeast Asia covering 12 nations.

The company had named CMD CM Sethi as the head of the new division which includes, Singapore, Vietnam, Thailand, Cambodia, Laos, Malaysia, Indonesia, Brunei, East Timor and Philippines.

Markets

Bosch suspends manufacturing to avoid excess inventory

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Manufacturers of auto components, Bosch Ltd said that it will be suspending operations from its manufacturing plants in Bangalore and Nasik. The company said that it will be suspending its operations so as to avoid unnecessary built up of inventory.

Bosch, which has its headquarters in Bangalore said, “With a view to adjust production to meet the demand for products and to avoid unnecessary build up of inventory, it is proposed to suspend the manufacturing operations of the Bangalore and Nasik plants”. The Bangalore plant will be closed for operations during the next three days on July 27, July 28 and July 30.

The Nasik plant will be closed on July 30 and July 31. Apart from the two plants in Bangalore and Nasik, Bosh also has plants in Naganathapura near Bangalore and also in Jaipur.

The company website has mentioned Bosch Group in India employs more than 25,000 associates. In India the company generated a consolidated revenue of more than Rs. 11,300 crore in the year 2011. Bosch is a flagship company of the Bosch Group. The company said that it earned a revenue of Rs. 8,000 crore in the year 2011. Despite repeated attempts, no one from the company was available for comments. On July 26, 2012 the shares of the company closed at Rs. 8,660.05 apiece on the BSE.

Banking Business Economy Markets Personal Finance

RBI says 9% of banks in India don’t want to lend to poor

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There are many banks in India which show reluctance to lend money to the poor. This is in turn is effecting the implementation of Prime Minister Manmohan Singh government’s financial inclusion scheme.

The Reserve Bank Of India (RBI) has found that about 9% of the banks out of 92,690 in India are the most reluctant in lending. The credit ratio is less than 25% and loan disbursals through these offices fell by 15.4 percent year by year to December 2011 against a 4% rise in the corresponding period in 2009-10.

People who have limited access to institutional credit borrowed even less last year amidst the slow economy and lesser opportunities to engage in economic activities. On the other hand, banks have created the infrastructure to reach out 74,200 odd villages in the last couple of years, but these are yet to turn in to profit centres despite the fact that they have opened crores of no-frill deposit accounts.

Such branches are yet to earn any meaningful revenues in the absence of any big lending activity. Moreover, they also do not offer remittance facilities or sell risk covers which are other avenues of earning revenues.

At present the regional rural banks are the only group which reported a rise in lending through their most reluctant branches.