Market Review on Friday, Dec 3:
Auto industry expects slower growth at 18-20 percent
In the first half of the current financial year domestic automotive sales increased by 27.3 percent as compared to the last year. As per the Society of Indian Automobile Manufacturers (Siam) domestic growth is expected to be at 18-20 percent for the entire year. The SIAM had revised the annual estimate upwards from 12-15 percent, after gauging the robust growth, where the industry reported in the first six months, when customers bought 1.17 million passenger vehicles.
Growth in the second half of the current financial year is expected to be moderate, as the high base effect of the previous year will also come into play. Sales in the second half of last year were very strong, compared to the first half of the previous year. In addition, any further increase in interest rates on vehicle loans could start having an effect on retail demand. Rising commodity prices and lower export demand, particularly in Europe, could also have an impact.
Hero may have to play on Honda terms after break-up
As the final draft of separation between the Hero Group and Honda Motor Company gets readied, concerns are being raised on the Indian company's ability to promote and sell its indigenous products in the long term, while managing the added burden of royalty payouts to the Japanese company.
Honda has asked Hero to refrain from any technical changes required for giving routine facelifts to the products, as they will not have been approved by the Japanese company. More, Hero may even be restricted on introduction of new products during the next four years under the joint brand of Hero Honda, although sources say a few new products had been agreed upon for launch under the joint brand. However, Hero could launch products under its own brand.
Peekay Mediequip eyes Rs 125 cr in 2011-12 on expansion plans
Peekay Mediequip, the maker of SEPNIL brand of disposable syringes, is targetting Rs 125 crore in 2011-12 on the back of its expansion plans that include bringing out new products.
The company will look at a pan-India presence next year after consolidating its presence in the South. It expanded to Maharashtra, Gujarat and Rajasthan last month and it is targetting Rs.50 crore revenue this year and Rs.125 crore in 2011-12. Peekay Mediequip has a 25 percent market share in Tamil Nadu. The manufacturing unit in Thirumalai Samudram in Thanjavur district manufactures about 15 lakh disposable syringes and an equal number of needles per day. The company was mulling expanding to Middle East and Gulf and also a tie up for the Tanzania market to dispatch 20 to 22 lakh units of SEPNIL products every month.
NPC, Areva to sign two key pacts on Jaitapur
Nuclear Power Corporation (NPC) and Areva would sign two crucial agreements for developing a 10,000-MW nuclear power project at Jaitapur in Maharashtra. The agreements, a general framework agreement (GFA) and an early works contract, would fine-tune the scope of works and estimated cost of the project.
The signing of these two agreements was necessitated during a memorandum of understanding (MoU) signed between the Nuclear Power Corporation and Areva in Feb 2009 for supply of six European Pressurized Reactors or Evolutionary Power Reactors (EPRs) of 1,650 MW each for the Jaitapur project. Initially, these two agreements would be for the supply of two EPRs by Areva. The project is expected to entail an investment of over Rs 1 lakh crore.
(An article by DAS CAPITAL MANAGEMENT AND ADVISORS Pvt Ltd)