India's industrial growth in June at 9.8%; Falls below 10% for first time in 8 mts due to slowdown in consumer demand
India's industrial production fell below 10% for the first time in eight months due to slowdown in consumer demand. The industrial output grew 9.8% in June compared with 9.7% a year ago and 10.9% in May. Industrial growth in Apr-Jun, the first quarter of 2007-08, grew 11.0% compared with 10.5% in the same period of last year.
The manufacturing sector, which accounts for almost four-fifth of the total weight of the Index of Industrial Production, continued to maintain double-digit growth though the expansion is slowing down. The manufacturing segment grew 10.6% in June compared with 10.7% a year ago and 11.7 a month ago.
The slowdown in manufacturing is due to slower growth in consumer goods, especially consumer durables. Consumer goods grew 4.2% in June while consumer durables grew only 0.6%. The industrial output growth in June is below consensus estimates.
According to a NewsWire18 poll of 11 analysts, industrial production in June was seen growing 10.9%. In June, electricity generation and mining output grew 6.8% and 3.6%, respectively.
Inflation moves up to 4.45% on costly food items
The wholesale price index (WPI) based inflation rose to 4.45% for the week ended July 28, 2007 compared with 4.36% the previous week, due to higher food and manufactured product prices.
The annual inflation rate was 4.72% during the corresponding week last year.
Inflation for the week ended June 2 was revised upwards to 5.09% from the provisional figure of 4.80% reported earlier.
Prices of food items like fruits and vegetables, mutton, eggs, masur and
bajra moved up. Prices of food products in the manufactured category like coffee and tea, baby food, sooji, maida and flour also went up, along with coffee powder - up 29%, baby food 18%, sooji 4%, maida and flour up 2% each.
Among manufactured items, prices of most chemicals, chemical products, machinery and machine tools also rose. Prices of chana dal increased, while those of arhar dal remained steady in retail markets across the country during the week.
However, tobacco products and beverages prices declined. Beer and alcohol prices were down 3%. Prices of most basic metals alloys also dipped. Prices in the fuel, power, light and lubricants category remained unchanged.
Inflation remains within the Reserve Bank of India's medium-term target of 4-4.5%.
Tata Tea plans JV in Russia; eyes LatAm
Tata Tea is firming up plans to form a joint venture for a manufacturing plant in Russia and is also looking at new markets of South America and the Far East.
The Russian venture is likely to be put in place in the next six to seven months and this would be a 'pathbreaking venture' of the company, R K Krishna Kumar, vice-chairman, Tata Tea told reporters after the annual general meeting today.
He said there would be a big Russian partner and a few smaller ones with whom Tata Tea would tie-up for the manufacturing and processing plant to make beverages such as tea and coffee. The plant would be a stepping stone for catering to CIS countries like Ukraine and Kazakhstan.
The official said after successfully acquiring brands like Tetley and Glaceau among others, the company was now looking at the markets of South America as well.
"US is the most exciting market for beverages," he said.
"As part of our global strategy, Tata Tea will also like to spread its wings to countries in the Far East," he said.
Tata Tea had also recently acquired 70% stake in a Chinese company.
Earlier, replying to shareholders' queries, Tata Tea chairman Ratan Tata said the company was also looking at the food processing business.
He said the surplus fund generated would be used to finance acquisitions. However, he dismissed reports that Tata Tea was eyeing US company AriZona, saying that it was speculative in nature.
Re appreciation a long-term issue: Infosys CEO
The country's second largest software exporter Infosys today said it is looking at rupee appreciation issue with a medium to long term perspective, and its immediate focus is on productivity, work practices and hedging.
"Productivity is a continuous issue. The second is about work practices, about working smarter," S Gopalakrishnan, CEO & MD, Infosys told reporters here after inaugurating the P G Senapathy Centre for Computing Resources at IIT-Madras.
The rupee rise has resulted in a fall in profit margins of IT companies, which are getting fewer orders from overseas clients.
"Our view is that we cannot predict how the currency is going to move... We look at a two quarter hedging strategy," Gopalakrishnan said.
To a query that most Indian IT companies in China were expanding faster, while Infosys had only about 700 employees on its roll, he said the company was prepared to grow in that region.
"Let business drive the growth," he said, adding Infosys had some internal plans in place to gain a stronger presence in China.
Central banks step in to ease liquidity woes
The European Central Bank (ECB), for the second day, announced plans to offer funds to calm panicky credit markets after Asian central banks joined a global campaign to inject extra cash into the banking system, according to a report by Reuters.
The ECB said it would add money through the weekend to calm markets, saying it "aims to assure orderly conditions in the euro money market".
The central bank, on Thursday, injected 94.8 billion euros ($130.6 billion) at 4%. The bank today offered funds for three days at a variable rate with minimum bids of 4%. For the second day in a row, it set no limit on the funds.
While Bank of Japan offered to supply one trillion yen ($8.45 billion), the Reserve Bank of Australia injected A$4.95 billion ($4.19 billion) today.
No time overrun in Rs 1-lakh car project: Tata
The ambitious Rs 1-lakh car project of Tata Motors is running behind schedule, but Ratan Tata, chairman, Tata Sons, hopes that it would achieve top speed to make up for lost time.
"The project is getting delayed," Tata said on the sidelines of Tata Tea's 44th annual general meeting.
But he hopes there would be no time overrun in the project - whose first car is expected to be rolled out in the second half of 2008.
"I do not want to give the feeling that the project itself is getting delayed, but we will use our capability to overcome the delay," Tata said.
Asked to give a date for the rollout due to the delay, Tata said that he did not want to give a specific date.
"There are vested interests working and we do not want to give a date," he said.
Tata also said that he would like to visit Singur.
Referring to the controversy over land acquisition for the car project in Singur, Tata said that the project would lift farmers from a life of poverty.
Stating that West Bengal had been ignored by the industry due to the government there, however, Tata Motors had decided to locate the plant at Singur because it believed that somebody would have to make a start.
Tata Realty to develop property for TCS
Tata Consultancy Services (TCS) and Tata Realty And Infrastructure (TRIL) have entered into a memorandum of understanding (MoU) to develop properties on land owned/to be owned by TCS.
According to a release issued by TCS to the BSE today, the MoU covers eight properties located in Pune, Trivandrum, Kochi, Ahmedabad, Hyderabad, Kolkata, Nagpur and Mangalore totaling approximately 380 acre.
"The properties will be developed in a phased manner over the next few years for the company. The buildings will be constructed and owned by TRIL (or by special purpose vehicles set up by TRIL) and will be leased to the company," the release added.
Tata Power to get Toshiba turbines for Mundra
Tata Power Company has signed an EPC contract for supply of five (5) 800 MW steam turbine generators with Toshiba Corporation for its 4000 MW Ultra Mega Power Project (UMPP) at Mundra, Gujarat.
According to an official release issued by Tata Power to the BSE today, Toshiba Corporation's scope of work includes - the design, manufacture, test and supply of equipment related to the steam turbine generator packages for the five units of 800 MW each. They will also be associated with supervision of commissioning of the turbines.
Prasad R Menon, MD, Tata Power said: "This agreement is a significant step towards our drawing on the technical expertise of a strong international player like Toshiba. This partnership will provide an excellent technical solution for Mundra UMPP which is also cost competitive."
Tata Power has acquired Coastal Gujarat Power, a special purpose vehicle (SPV) formed for Mundra UMPP.
Coastal Gujarat Power has also signed power purchase agreements (PPAs) with seven procurers for the sale of contracted capacity and supply of 4000 MW electricity, the release said.
India's industrial production fell below 10% for the first time in eight months due to slowdown in consumer demand. The industrial output grew 9.8% in June compared with 9.7% a year ago and 10.9% in May. Industrial growth in Apr-Jun, the first quarter of 2007-08, grew 11.0% compared with 10.5% in the same period of last year.
The manufacturing sector, which accounts for almost four-fifth of the total weight of the Index of Industrial Production, continued to maintain double-digit growth though the expansion is slowing down. The manufacturing segment grew 10.6% in June compared with 10.7% a year ago and 11.7 a month ago.
The slowdown in manufacturing is due to slower growth in consumer goods, especially consumer durables. Consumer goods grew 4.2% in June while consumer durables grew only 0.6%. The industrial output growth in June is below consensus estimates.
According to a NewsWire18 poll of 11 analysts, industrial production in June was seen growing 10.9%. In June, electricity generation and mining output grew 6.8% and 3.6%, respectively.
Inflation moves up to 4.45% on costly food items
The wholesale price index (WPI) based inflation rose to 4.45% for the week ended July 28, 2007 compared with 4.36% the previous week, due to higher food and manufactured product prices.
The annual inflation rate was 4.72% during the corresponding week last year.
Inflation for the week ended June 2 was revised upwards to 5.09% from the provisional figure of 4.80% reported earlier.
Prices of food items like fruits and vegetables, mutton, eggs, masur and
bajra moved up. Prices of food products in the manufactured category like coffee and tea, baby food, sooji, maida and flour also went up, along with coffee powder - up 29%, baby food 18%, sooji 4%, maida and flour up 2% each.
Among manufactured items, prices of most chemicals, chemical products, machinery and machine tools also rose. Prices of chana dal increased, while those of arhar dal remained steady in retail markets across the country during the week.
However, tobacco products and beverages prices declined. Beer and alcohol prices were down 3%. Prices of most basic metals alloys also dipped. Prices in the fuel, power, light and lubricants category remained unchanged.
Inflation remains within the Reserve Bank of India's medium-term target of 4-4.5%.
Tata Tea plans JV in Russia; eyes LatAm
Tata Tea is firming up plans to form a joint venture for a manufacturing plant in Russia and is also looking at new markets of South America and the Far East.
The Russian venture is likely to be put in place in the next six to seven months and this would be a 'pathbreaking venture' of the company, R K Krishna Kumar, vice-chairman, Tata Tea told reporters after the annual general meeting today.
He said there would be a big Russian partner and a few smaller ones with whom Tata Tea would tie-up for the manufacturing and processing plant to make beverages such as tea and coffee. The plant would be a stepping stone for catering to CIS countries like Ukraine and Kazakhstan.
The official said after successfully acquiring brands like Tetley and Glaceau among others, the company was now looking at the markets of South America as well.
"US is the most exciting market for beverages," he said.
"As part of our global strategy, Tata Tea will also like to spread its wings to countries in the Far East," he said.
Tata Tea had also recently acquired 70% stake in a Chinese company.
Earlier, replying to shareholders' queries, Tata Tea chairman Ratan Tata said the company was also looking at the food processing business.
He said the surplus fund generated would be used to finance acquisitions. However, he dismissed reports that Tata Tea was eyeing US company AriZona, saying that it was speculative in nature.
Re appreciation a long-term issue: Infosys CEO
The country's second largest software exporter Infosys today said it is looking at rupee appreciation issue with a medium to long term perspective, and its immediate focus is on productivity, work practices and hedging.
"Productivity is a continuous issue. The second is about work practices, about working smarter," S Gopalakrishnan, CEO & MD, Infosys told reporters here after inaugurating the P G Senapathy Centre for Computing Resources at IIT-Madras.
The rupee rise has resulted in a fall in profit margins of IT companies, which are getting fewer orders from overseas clients.
"Our view is that we cannot predict how the currency is going to move... We look at a two quarter hedging strategy," Gopalakrishnan said.
To a query that most Indian IT companies in China were expanding faster, while Infosys had only about 700 employees on its roll, he said the company was prepared to grow in that region.
"Let business drive the growth," he said, adding Infosys had some internal plans in place to gain a stronger presence in China.
Central banks step in to ease liquidity woes
The European Central Bank (ECB), for the second day, announced plans to offer funds to calm panicky credit markets after Asian central banks joined a global campaign to inject extra cash into the banking system, according to a report by Reuters.
The ECB said it would add money through the weekend to calm markets, saying it "aims to assure orderly conditions in the euro money market".
The central bank, on Thursday, injected 94.8 billion euros ($130.6 billion) at 4%. The bank today offered funds for three days at a variable rate with minimum bids of 4%. For the second day in a row, it set no limit on the funds.
While Bank of Japan offered to supply one trillion yen ($8.45 billion), the Reserve Bank of Australia injected A$4.95 billion ($4.19 billion) today.
No time overrun in Rs 1-lakh car project: Tata
The ambitious Rs 1-lakh car project of Tata Motors is running behind schedule, but Ratan Tata, chairman, Tata Sons, hopes that it would achieve top speed to make up for lost time.
"The project is getting delayed," Tata said on the sidelines of Tata Tea's 44th annual general meeting.
But he hopes there would be no time overrun in the project - whose first car is expected to be rolled out in the second half of 2008.
"I do not want to give the feeling that the project itself is getting delayed, but we will use our capability to overcome the delay," Tata said.
Asked to give a date for the rollout due to the delay, Tata said that he did not want to give a specific date.
"There are vested interests working and we do not want to give a date," he said.
Tata also said that he would like to visit Singur.
Referring to the controversy over land acquisition for the car project in Singur, Tata said that the project would lift farmers from a life of poverty.
Stating that West Bengal had been ignored by the industry due to the government there, however, Tata Motors had decided to locate the plant at Singur because it believed that somebody would have to make a start.
Tata Realty to develop property for TCS
Tata Consultancy Services (TCS) and Tata Realty And Infrastructure (TRIL) have entered into a memorandum of understanding (MoU) to develop properties on land owned/to be owned by TCS.
According to a release issued by TCS to the BSE today, the MoU covers eight properties located in Pune, Trivandrum, Kochi, Ahmedabad, Hyderabad, Kolkata, Nagpur and Mangalore totaling approximately 380 acre.
"The properties will be developed in a phased manner over the next few years for the company. The buildings will be constructed and owned by TRIL (or by special purpose vehicles set up by TRIL) and will be leased to the company," the release added.
Tata Power to get Toshiba turbines for Mundra
Tata Power Company has signed an EPC contract for supply of five (5) 800 MW steam turbine generators with Toshiba Corporation for its 4000 MW Ultra Mega Power Project (UMPP) at Mundra, Gujarat.
According to an official release issued by Tata Power to the BSE today, Toshiba Corporation's scope of work includes - the design, manufacture, test and supply of equipment related to the steam turbine generator packages for the five units of 800 MW each. They will also be associated with supervision of commissioning of the turbines.
Prasad R Menon, MD, Tata Power said: "This agreement is a significant step towards our drawing on the technical expertise of a strong international player like Toshiba. This partnership will provide an excellent technical solution for Mundra UMPP which is also cost competitive."
Tata Power has acquired Coastal Gujarat Power, a special purpose vehicle (SPV) formed for Mundra UMPP.
Coastal Gujarat Power has also signed power purchase agreements (PPAs) with seven procurers for the sale of contracted capacity and supply of 4000 MW electricity, the release said.
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