NEWS
& NOTES
NATIONAL &
INTERNATIONAL NEWS
Industrial growth 702%
Industrial growth was 7.2 percent in
March 2005, down from 8.1 percent in March 2004, mainly on account of a
marginal decrease in manufacturing growth and a sharp decrease in the growth
rates for electricity.
For fiscal 2004-05,
industrial growth at 8 per cent was higher than the 7 percent figure reported
for 2003-04, mainly on account of a better performance by the manufacturing
sector.
During March 2005,
manufacturing grew at 7.8 per cent, down from 801 per cent in March 2003-04,
while the electricity sector reported 3 per cent growth as against 10.6 per
cent in March 2003-04. Mining reported 5.6 per cent growth, up from 5.1 per
cent in the corresponding month in the previous fiscal.
The manufacturing
sector-which account for almost 80 per cent of the index of industrial
production (IIP)- grew at a healthy 8.8 per cent in the previous fiscal,
according to figures released by the Central Statistical Organization (CSO).
The mining sector however
reported drop in growth rates from 5.2 per cent in 2003-04 to 4.3 per cent in
2004-05. While the electricity sector grew at 5.2 per cent, marginally up
from 5.1 per cent in 2003-04.
Capital goods, another
sector, which is indicative of investment demand in the economy, reported 14.2
per cent growth in March 2005. This sector had grown at 4.5 per cent in
February 2005.
Of the 17 two digit-industry
groups, 14 have shown positive growth in March 2005 as compared to March
2004.
The chemical sector continued
to do badly, with growth rates falling further to 4.5 per cent. While the
machinery and equipment sector reported an uptum in grow rate from 9 per cent
in February to 14.2 per cent in March.
Rubber
Consumption to grow at 4.2%
According to the projection
by IRSG, World rubber consumption will grow at about the same rate of 4.2% in
2005 and 2006. The highest growth rate, 6% will come from Latin America at
least for 2005. This will be followed closely by Asia-pacific at 5%, North
America and Africa at 4.6% each and the European Union at 2.6%. Other Europe
(-0.3%) is the only region expected to show no growth in 2005.
In 2006, growth could be
anticipated in all regions with Asia Pacific at 5.5% expected to lead the
way. Other Europe (5%) will bounce back to show quite a sharp growth rate,
followed by Latin America (4.2%), the EU (2.9%), North America (2.2%) and
Africa (0.1%).
The high prices of petroleum
will keep synthetic rubber (SR) prices high compared with natural rubber (NR)
Hence, a much sharper consumption growth of about 5.5% is expected for NR in
2005.
Rising rubber prices
Natural rubber prices are up
to Rs. 4-4.50 kg as compared with the same a year ago, but consuming
industries are hopeful that the rates would stabilise soon. We are expecting
the prices not to go beyond Rs. 65 a kg an official in the tyre industry
said.
An international rubber
dealer said Rs. 65 a kg was possible in the coming days but prices may not
flare up like they did last fiscal. When the RSS4 crossed Rs. 67 for a kg.
The factors that pushed up prices last year were a nine-year low stock
position (of about 66,000 tonnes), heavy monsoon that affected tapping and
exports of natural rubber from India that limited the availability of rubber
in the market. However, this year, things are looking different. The stock
position as of now is sufficient for at least one-and-a –half moth’s
consumption. ‘On April 30, the stock position would be about 96,000 tonnes.’
Said Mr. N. Radhakrishnan of the Cochin Rubber Merchants Association
The average monthly
consumption of rubber in the country is about 66,000 tonnes.
The opening stock in 2005-06
itself was higher by over 30,000 tonnes at 1.07 lakh tonnes on April 1, as
against 77,295 tonnes a year ago.
Production in April this year
is estimated to be about 45,000 tonnes, and added to this, imports of 6,500 to
7,000 tonnes have come in.
Consumption for the month is
pagged at about 62,000 tonnes, thus leaving a stock of about 96,000 tonnes.
Since international prices
are ruling below the domestic rates. Tyre companies would continue to import,
taking advantage of Zero duty facility under the advance licence scheme for
export production.
A major factor that
influenced prices in the past couple of years would be missing this year in
all likelihood-exports.
In fact, the exports of
75,905 tonnes of natural rubber in 2003-04 and 45,000 in the year after had
helped a great deal in bolstering the domestic prices.
Since the Government has done
away with export subsidies, the attraction to export natural rubber has
diminished. Also, international prices are now ruling lower.
But absence of exports and
tyre makers plan to import about 60,000 tonnes for the year could check a
price flare up.
Waiting for
Supply to bounce back
Asian rubber prices are
likely to stay in narrow range with supplies in the region fight but overseas
demand thin, traders said.
Wintering, which causes
rubber trees to shed their leaves and produce about 30 per cent less latex
than usual, is affecting yields in the producing countries of Indonesia and
Thailand. Flash deals were reported in the Indonesian market, but overall
sentiment remained bearish.
The maker Goodyear recently
bough Indonesian tyre-grade SIR20 at 53.75 cents/Ib, or $1. 19 a kg.
Free-on-board (f.o.b) Belawan, for June shipment.
Recent losses in world prices
have pushed down Indonesian and Thai rubber prices slightly despite lean
supplies. Thai RSS3 rubber sheet was offered at $1.32 a kg for June
shipment. Thai STR20 block rubber was at $1.24 a kg f.o.b basis.
All eyes are now on the
unexpectedly dry weather in Thailand. However, traders said they were still
waiting for supply to bounce back. It is still very hot in growing areas and
rubber tapping cannot get back to full swing without rain, said one trader in
the southern town of Hat Yai.
Truck, bus tyre output surges
Truck and bus tyre productions were
on a roll in March going by the data released by the Automotive Tyre
Manufacturers, Association (ATMA). Production in this category registered a
level of 9.89 lakh units as against 8.97 lakh units in the previous month and
9.43 lakh units in March 2004.
The output in March was the
best for this category during the fiscal 2004-05. Truck and bus tyre
production during December 2004 and January 2005 stood at 9.68 lakh units and
9.47 lakh units respectively. This category accounted for over 60 per cent of
the total turnover of the tyre industry in value terms.
The data also showed that
truck and bus tyre exports during March surged to 2.59 lakh units as a against
& export level of 2.19 lakh units as a against & export level of 2.19 lakh
units in February. The domestic tyres industry exported 2.23 lakh units of
truck and bus tyres; during March 2004.
Passenger car tyre production
by ATMA member companies witnessed a sharp rise in March at 10.58 lakh tyres
as against 8.80 lakh units in the previous month. They had reported a
production level of 9.14 lakh units of passenger car tyres during March 2004.
Production of light
commercial vehicle tyres stood at 3.84 lakh tyres during March as against 3.05
lakh tyres during February
Dumping
duty on NBR mooted
The Designed Authority in the
Commerce Ministry has recommended imposition of provisional anti-dumping duty
on import of acrylonitrite butadiene rubber (NBR) from the 25 member European
Union (excluding Germany). Mexico and Brazil
In a notification on its
preliminary findings, the Authority said that acrylonitrite (CAN) and
butadiene (BD) are two principal raw materials for the production of NBR and
prices of both these monomers have risen worldwide. It said that Apar
industries Ltd. Filed a written petition to the authority, furnishing details
of how the goods from the countries mentioned by it are inflicting material
injury to the domestic producer.
The Authority said the dumped
goods from several sources competing with one another and with domestic
production are affecting. The domestic market for which cumulative injury
analysis has been done. It also highlighted that there is a healthy demand
for the subject goods in the domestic market.
After a preliminary probe to
assess the extent of dumping and the injury inflicted on the domestic
industry, the Authority said that landed values of the materials from the
subject countries are significantly lower than the selling price of the lower
than the selling price of the domestic industry, causing sever price
undercutting in the Indian market. Hence, it recommended imposition of
provisional anti-dumping duty on imported subject goods NBR (excluding powder
and carboxylated NBR).
The Authority said that its
examination revealed that the trend of net sales realisation of the domestic
industry had declined significantly between 200-01 and 2002-03 and a marginal
rise during the period of investigation (2003-04).
This is still significantly
below the cost of production indicating the inability of the domestic industry
to raise its prices to recover the full cost due to price effects of the
dumped imports from the subject countries.
Moreover, the Authority said,
the domestic industry has been compelled to benchmark its prices with the
landed value from the dumped sources to retain its market share. This meant
that dumped imports from the subject countries have marked price suppression
and depression effects on the prices of the domestic industry.
Magnitude of dumping as an
indicator of the extent to which the dumped imports could injure the domestic
industry shows that the dumping margin determined against the countries for
the period of investigation ranged from 21 per cent and 27 per cent in the
case of two Brazil firms, 26 per cent in the case of exporters from the EU,
and 50 per cent in the case of exports from Mexico.
Dumping probe on EPDM
The Designated Authority in the
Commerce Ministry has initiated and anti-dumping probe on all imports of
ethylene-propylene-non-conjugated diene monomer (EPDM) rubber from the
European Union, the US. China and Brazil
EPDM is a synthetic rubber
used in automobile tyres and tubes, cables and hoses and moulded items used in
automobile parts.
Informed sources said that
Unimers India, Mumbai had filed the application seeking the anti-dumping
investigation on EPDM imports from the EU, the US, China and Brazil.
Anti-dumping duty on rubber
chemicals
The Designated Authority in the
Commerce Ministry has recommended imposition of provisional anti-dumping duty
on imported rubber chemicals such as MOR, PX 13 and TDQ, which are extensively
used in treating natural rubber, synthetic rubber and synthetic rubber-based
compounds for manufacture of various rubber-based products.
The import of these chemicals
from the European Union, the US, China and Chinese Taipei would be subject to
anti-dumping duty once the revenue department follows this up with
notification.
Following a written petition
from National Organic Chemicals Ltd., on behalf of the domestic industry which
alleged that dumping of the subject goods is so extensive that two major
producers. Bayer India and ICI India, had exited from manufacture of the
products and turned traders by resorting to imports from some of the subject
countries, the authority held a preliminary probe.
After the probe, the
authority said the subject goods have entered the Indian market from the
subject countries at prices less than their normal values in the domestic
markets of the exporting countries.
Again, the dumping margin of
the subject goods from the subject countries are substantial and above de
minimus.
As a result, the domestic
industry suffered material injury in terms of loss of market share, low
capacity utilisation and profitability. Hence, the authority deemed it
necessary and recommended provisional antidumping duty.
Highlighting its injury
analysis, the authority noted that in the case of rubber chemical MOR, there
is a substantial increase is domestic demand and the sales of the domestic
industry shows significant increase in absolute volume terms. But the
domestic industry has lost considerable market share to the dumped imports,
which had more than doubled.
In the case of rubber
chemical PX 13, While the demand for the product has increased only 38 per
cent, the dumped imports have increased almost 200 per cent and the sales of
domestic industry have increased only 22 per cent. In the case of TDQ,
imports increased over the probe period in absolute terms by 150 percent,
whereas the dumped imports rose by 166 per cent.
Rubber
Board identifies 5 lakh ha for plantations.
The Rubber Board had identified five
lakh hectares in the North-East region where rubber plantations can be
developed to double the country’s total rubber growing area.
We can have five lakh
hectares in the North-East to plant rubber. Since we have covered only 10 per
cent of this area, there is enormous scope to increase our plantation area,
said Dr. N.M. Mathew, Director of the Rubber Research Institute of India.
Tripura, Assam, Meghalaya, Nagaland, Manipur and Mizoram have about 54,000 ha
of plantation, which produced about 20,000 tonnes of rubber last year,
according to statistics available.
The development of rubber
plantations in the region is imperative to address the issue of widening gap
between demand and supply for natural rubber as Kerala. Which accounts for 92
per cent of natural rubber, production, is saturated. In Kerala, no more area
is now available for rubber plantation. At the same time, our demand for
rubber is increasing. We anticipate more widening of the gap between demand
and supply in the years to come, “Dr. Mathew said.
India, ranked forth among
rubber producing countries, expects its rubber output to grow 4 per cent to
7.80 lakh tonnes this year, as against a 5.4 per cent growth in 2004-05. It
had 5.73 lakh ha of plantation in 2003-04, of which Kerala accounts for 83 per
cent.
In order to meet the growing
demand of land for plantations, the Rubber Board is trying out innovating
schemes in the North-East, in spite of insurgency problems. Dr. Mathew said
one of the ideas that had worked in the region is the Block Plantation
Scheme. Under this scheme, some 100 tribals who own one to two ha of land
each have been brought together.
“We plant rubber for then in
the plantation, using their labour. We also pay them wages,” Dr. Mathew
said. The Rubber Board supervises the plantation activities and when the
trees are ready for tapping locals are trained how to tap.
A co-operative society is
formed to deal with the trading. Dr Mathew said about 1,000 ha of plantations
have been created through the scheme. Most of such plantations have come up
in Tripura.
The Tripura Government and
the Rubber Board contributed 50 per cent each towards the cost of the scheme.
“Now the tribals don’t know how to spend the money they have earned from
rubber”, he said, underscoring the economic prosperity that has come to the
locals from the plantations.
Dr. Mathew said although land
is available in the region, the cold climatic conditions of the North-East is
not really conducive to rubber. Latex gets very thin and often overflows due
to this weather. You cannot tap continuously under these circumstances and
hence total tapping days are about 80 per cent of that in Kerala, because of
this issue, yield is relatively lower in North –East, he pointed out.
However, labour cost is
significantly cheaper in the region compared to that in Kerala, thereby making
the overall economics viable.
Kyoto Protocol funding
It may not be the latex alone that
the rubber growers are selling in future. They could well be trading in the
amount of carbon dioxide their trees have absorbed.
The Rubber Research Institute
of India (RRII) has started a project to assess the carbon absorption
capabilities of rubber plants, which can be encashed as per the provisions of
the Kyoto-Protocol.
The RRII is now trying to
work out how much carbon can be sequestrated by one hectare of rubber
plantation, said Dr. N.M. Mathew, Director of the Institute, in an interview.
“Rubber plants have very high
carbon assimilation capacity. We have found that in the growing phase, this is
more,” Dr. Mathew said.
Once the carbon sequestration
per hectare is quantified, and necessary approvals are obtained. Rubber
plantations can pitch for funding from developed countries under the Kyoto
Protocol to the United Nations Framework Convention of Climate Change (UNFCCC).
This in a way would help
farmers raise funds to develop plantations till the trees are ready for
tapping. It takes 6-7 years for a rubber tree to start yielding latex.
The Protocol mandates
developed countries to bring down green house gas emissions to five per cent
below the levels prevailed in 1992. One of the three mechanisms the Protocol
has put in place is called the clean development mechanism (CDM).
Under the CDM, developed
countries can contribute to environment friendly projects in developing and
least-developed countries. One tone of carbon dioxide (or its equivalent of
other gases such as methane) thus reduced from the atmosphere through a CDM
project is called certified emission reduction (CER).
Third plant in Coimbatore by
Miracle
The Kerala-based Miracle
Group with interests in the manufacture of reclaimed rubber proposes to set up
a new plant, its third, in Coimbatore to meet raising demand from tyre
manufacturers. Announcing this, Mr. P. P. Ahmed Kutty, Chairman and Managing
Director, said that the group has set up a new company, Miracle Polymers India
Ltd, to oversee operations in Coimbatore, it has been floated with a paid-up
capitali of Rs 2.1 crore, but efforts are on to raise additional funds to the
tune of Rs 1.6 crore from the NRI community
Commercial production from
the new facility will start from January 2006. According to Mr. Kutty, the
existing production capacity of 380 tonnes per month has been found to be far
below the demand from the user industry. This is what led the group to think
in terms of setting up a third facility with a capacity to produce 400 tonnes
per month.
Coimbatore was chosen as the
new base taking in view the availability in adequate quantities of crumb
rubber in the neighbourhood. Other factors that swung the decision in its
favour were the emerging opportunities in rubber-based industries,
uninterrupted electricity, cheap labour and backward linkages to parent
units.
According to Mr. V. K. Hassan,
Managing Director, Miracle Polymers, the company, will employ 160 employees to
start with 60 per cent being women. The indigenously developed technology has
helped reduce the capital expenditure for the new facility by as much as 50
per cent.
Output and exports booming
Natural rubber (NR) production and
export from Vietnam are increasing faster than any other country in Southeast
Asia. Vietnam currently ships to nearly 50 countries and rubber producers
plan to ship some 400,000 tonnes – worth an estimated US $600 million-all over
the world, says the Vietnam Rubber Association. Orders worth about 150,000
tonners have already been received.
This represents a huge
increase over the reported average Vietnamese output of 250,000 tonnes. The
San Francisco-based commodity trader, Cornell Bros. Co., Ltd., estimates the
Vietnam rubber industry’s annual growth rate at 15%.
The Vietnamese Government has
projected that total area rubber will nearly double by the end of 2005 to 1.73
million acres from the current 900,000 million acres.
China is the major buyer of
Vietnamese rubber, accounting for over 40% of total exports.
Industrial policy not
Conducive
Ficci President Onkar S. Kanwar said
the industrial policy was not conducive to the manufacturing sector when
compared to other South Asian countries. Talking to reporters on the
sidelines of Ficci’s national executive, kanwar said the Indian products are
more expensive compared to the imported ones due to high taxation, power
tariff and interest rate.
There was need to introduce
proactive policy measures and timely action to provide enough strength to
manufacturing competitiveness of industries in view of the WTO regime, he
said
New marketing
head
After a long hiatus. JK Tyre has
finally got a marketing head. Kalyan K. Paul formally took over as marketing
director of one of India’s largest tyre makers. Prior to this Mr. Paul headed
marketing at Ceat India’s number-four tyre maker by revenue. A master in
business administration. (MBA) by training. Mr. Paul brings with him 27
years of experience in sales and marketing.
188% increase in net profit
of IPCL
Aided by a sharp reduction in
raw material costs. Indian Petrochemical Corporation (IPCL) has reported a
240% increase in net profit to Rs. 336 crore for fourth quarter ended 31st
March 2005. Net turnover for the quarter rose marginally to Rs. 2.643 crore
from Rs. 2,620 crore in the same period last year. Total expenditure on the
consumption of raw materials came down by 261% to Rs. 993 crore during the
quarter. Interest costs meanwhile, declined to Rs. 10 crore from Rs. 31 crore
in the same period last years.
The company reported a 188%
increase in net profit at Rs. 786 crore for the year ended 31st
March 2005, compared to Rs. 273 crore last year. An overall improvement in
the demand for petrochemical products and a sharp uptum in prices of polymer
products have contributed to the surge in net profit. Net profit for the year
has been arrived at after recognising impairment loss of Rs. 20 crore and
extraordinary expenditure of Rs. 62 crore on account of the voluntary
refinement scheme. The annual profit is the highest ever achieved by IPCL.
Company sources said.
Net turnover for the year
ended 31st March 2005 rose by 38% to Rs. 8,131 crore. Operating
profit for the year rose by 40% to Rs. 1.756 crore. Other income was at Rs.
132 crore as compared to 101 crore last year.
MRF to hike prices
MRF is likely to further hike its
tyre prices after an around 8 per cent increase last July.
“Raw material prices have
never skyrocketed so much. All tyre companies are reeling under its
pressure. In a competitive environment we cannot pass on price increases to
the customer,” said Philip Eapen, executive director marketing MRF. He did
not get into specifics as to whether the price increase will be in the
replacement market or in the replacement market or in the original equipment
manufacturer category or both.
MRF expects the continued
rising input costs to put a squeeze on its profits this year as well, even as
it continues to face stiff competition to maintain top line margins.
The company’s net profit had
plummeted by 75.46 per cents to Rs. 28.80 crore for the year ended September
2004 compared with Rs. 117.38 crore recorded in the same period last year.
Costs of inputs such as
natural rubber and oil based by products, which constitute up to 70 per of
manufacturing costs, saw a steady increase last year.
MRF has unlocked a slew of
initiatives aimed at controlling spiralling input costs, we have continuously
looked at containing costs that’s why we did not increase prices to the
fullest extent. These initiatives are mostly process driven and a few are R&D
related, added Eapen.
Commenting on growth for the
overall domestic tyre industry. Eapen remarked that truck tyres are expected
to have a flat growth trajectory or even witness a slightly negative growth,
motorcycle tyres to grow at 8-10 per cent and the passenger car industry to
grow at 5 – 6 per cent.
MRF plans to increase
exports, which stood at Rs. 351.18 crore last fiscat, by 10 per cent this
year. The company currently exports to about 65 countries.
VAT panel not to introduce new
rate
The Empowered Committee of State
Finance ministers on valueadded tax (VAT) does not favour, for now, the
introduction of a new VAT rate between 4 and 12.5 per cent. This position of
the VAT panel has been conveyed to the Delhi Government, which had been
pitching for an 8 per cent VAT rate.
“It was decided that at least
for the next three months, the Empowered Committee would not consider
introduction of any new rate”, Mr. Ramesh Chandra, Member Secretary of the
Empowered Committee said.
Under the current VAT system,
covering about 550 goods, there are only two basic VAT rates of 4 per cent and
12.5 per cent. There is also a specific category of tax-exempted goods and a
special VAT rate of 1 per cent only for gold and silver ornaments.
Admitting that prices of
certain items that had moved from, say, the earlier 8 per cent could go up,
Mr. Chandra said that the Empowered committee hoped the effect of the
additional 4.5 per cent would get largely mitigated through the set of that
would be available under the new tax system.
Mr. Chandra also said the
Empowered Committee was hoping that Haryana would conform to the uniform floor
rate of 20 per cent on diesel that was agreed upon by all States. Diesel may
be out of VAT. But we have not given up the principle of uniform floor rates.
This is very much there, he said.
While Delhi had from April 1
pagged the tax rate on diesel at 20 per cent, neighbouring Haryana and Punjab
were adopting a rate much lower than the 20 per cent, thereby leading to loss
of trade for Delhi.
Meanwhile, Assam is
understood to have recently made a case for pegging the VAT rate on rice at 2
per cent (foodgrain). The Expowered Committee had given States the option of
exempting foodgrains from VAT or imposing a 4 per cent VAT rate. This option
was, however available only during the first year of VAT implementation. Assam
is said to have contended that the move towards a 4 per cent VAT next year
would be easier if the VAT rate is pegged at 2 per cent in the first year.
Before VAT, the sales tax on rice in Assam was 2 per cent.
J K Inds. & Dunlop in red
Dunlop India Ltd., whose operation
have been suspended, has reported a loss of Rs. 4.78 crore during 2004-05 as
compared with a net profit of Rs. 32.67 crore in the corresponding period of
previous fiscal, according to company sources. The company’s loss at the end
of fourth quarter declined to Rs. 16.40 from Rs. 20.75 crore previous
financial year. As operations of Dunlop was suspended, there was no revenue
from sales. However, other income during 2004-05 stood at Rs. 37.02 crore,
higher from Rs. 9.19 crore in the previous year.
J K Industries reported a net
loss of Rs. 1.99 crore for the second quarter ending March 31. 2005 Compared
with a net profit of Rs. 6.40 crore in the comparable quarter of the previous
year. Turnover rose six per cent to Rs. 566 crore (Rs. 532.50 crore).
Increasing raw material cost and lack of commensurate price increase input led
to the net loss, said a JK Industries official. The company officials however
said that the second half of the year is likely to be better than the first
half. Tumover for the first half was Rs. 1071 crore, up 4% from Rs. 1033
crore in the corresponding half of the previous year “price of crude based
inputs and natural rubber showing signs of stability. With our expansion
plans in the pipeline along with scope to increase the price of output, we are
confident of posting better results in the second half of this year,” said A.K.
Kinra, finance director, J K Industries.
Profitable year Since 2001 for
Goodyear
Goodyear reported its first
profitable year since 2001, recording net income of US $ 114.8 million in
2004, Compared with a loss of US $ 807.4 million a year earlier. The company
set a record with net sales for the year at US $ 18.4 billion, 21.9% higher
than in 2003, Global Tire News reports
Goodyear’s North American
Tire division also was profitable, recording operating earnings of $31.5
million in 2004 compared with a loss of $130.9 million in 2003. Sales rose to
$ 7.85 billion for the year, up 16.4% from 2003.
For the fourth quarter,
Goodyear posted record sales of $4.83 billion up 23.5% and a net income of
$124.6 million vs. a loss of $427 million in 2003 after income takes.
According to Akron-based Goodyear, the improvement in its overall annual
results were boosted by a Q4 after tax gain of $156.6 million from an
insurance settlement. Among other positive benefits.
Michelin’s profitable run
continues
In spite of significant price
increases in several areas. Group Michelin proved its lasting profitability
in 2004. During the year, Groupe Michelin achieved a tumbler of 15.6 billion
euros ($21.07 billion) and an operating income of 1.299 billion euros, 8.3% of
the company’s total turnover. At the same time, net income rose to 527
million euros ($705 million), reports Tuyres $ Accessories.
At the end of 2004 Michelin
had net debts of 3.2 billion euros. The largest proportion of the operating
income came from the passenger car/SUV tyre division, which brought in 731
million euors. The truck division’s operating income totalled a significant
548 million euors. For the first time, the group’s other activities,
division, found its way into the black, reporting 20 million euros of
operating income.
ATL Perambra unit completes 30
years
The foundation stone for the
first Apollo Tyres plant was laid on 13th April 1975 at Perambra in
Kerala by C. Achuta Menon, the then Chief Minister of the State and the
progress of work was quick. The Rs. 300 million factory started operation on
8 March 1977 with a targeted output of 50 tonnes a day.
The unit first started
rolling out scooter tyres. This was followed by passenger car tyres under the
brand name ‘Ace’ With the launch of India’s first truck tyre named ‘Bahadur’
and tyres specially designes for vehicles of greater tonnage called
‘Hercules’. Apollo had established its preeminence as a major manufacturer of
tyre for commercial vehicles.
According to Mr. Onkar. S.
Kanwar, the Chairman and Managing Director, over the years, Apollo unit has
grown into one of India’s leading tyre plants with capacity to roll out tyres
worth Rs. 9,000 million a year.
It was the far-sighted and
timely approach adopted by Apollo’s founder Chairman Raunaq Singh and Mr.
Onkar Kanwar that has made Apollo tyre what it is today, says Mr. Neeraj R. S.
Kanwar, the Chief Operating Officer.
The Perambra factory, with a
workforce of about 2,500 currently produces truck/passenger car/LCV tyres
besides tractor tyres of international quality. Production has been raised
from 50 tonnes a day to 250 tonnes, points out Mr. N. Sreekumar who heads
Apollo’s Kerala operations.
This Apollo unit has the rare
distinction of being the first tyre unit in India that has won QS 9000 quality
certification. The factory has also won the environment Maintenance Award of
the State’s Pollution Control Board, besides Productivity Award instituted by
the Kerala State Productivity Council.
Viton achieves ISO/TS 16949
Quality and Technical Certification
Dupont Dow Elastomers has achieved
another rigorous quality standard-ISO/TS 16949:2002 for viton fluoroelastomers-to
serve the world’s largest automotive manufacturers. ISO/TS 16949: 2002
certification is the new technical standard for automotive production and
OEMs.
By earning the ISO/TS
16949:2002 Certification, Dupont Dow is assuring its global customers that
Viton is backed by an internationally recognised quality system. At the same
time, automakers will know that viton with has long been an industry standard
for sealling. Will meet their specific individual needs.” Said Bob Bernacki,
global business director Viton.
Dupont Dow Viton received
certification for its manufacturing sites, laboratories, customer service and
supply chain in the U.S. and Europe. ISO/TS 16949:2002 replaces ISO 9000 and
QS 9000 to which Dupont Dow Viton was previously certified.
The ISO/TS 16949:2002
technical specification uses the ISO 9000:2000 standard to meet the specific
needs of the automotive and OEM industries. Together they8 specify the
quality system requirements of automotive related products. The new standard
specifies the companies have to monitor customer satisfaction and continuous
improvement. The new technical standard aligns existing U.S., German, French
and Italian automotive quality standards within the global automotive quality
standards within the global automotive industry. ISO/TS 16949:2002 was
written by the International Automotive Task Force, which consists of an
international group of vehicle manufacturers, all of the major automotive
companies, as well as national trade associations.
Lanxess improves sales and earnings
German chemical company
Lanxess AG, a spinoff of Bayer AG. Increased its sales and earnings in 2004,
benefiting from a general uptum in the industry, reports Neue Reifenzeitung,
quoting preliminary reports. The company significantly improved on its
operating results, achieving 59 million euros EBIT, recovering from a
1.3-billion euro loss in 2004.
According to the unaudited
figures, sales were up over 7% to 6.733 billion euros in 2004. Earnings rose
44% to 447 million euros. At the same time, net debt was reduced to around
1.1 billion euros. In the final quarter of 2004, the company posted an
operating loss of 17 million euros. Following a loss of 1.2 billion euros in
the same period of 2003.
Jumbo to exit India
After Shaw Wallance and Hindustan
Dorr-Oliver, another Jambo group company is up for grabs. Falcon Tyres, which
manufactures tyres under the brand name Dunlop, is on the block. A number of
domestic tyre majors are said to be in the race for the company. According to
industry sources JK Tyres and Apollo Tyres are among the major players that
have evinced interest in the Rs. 225 crore tyre company. It is learned that
talks with JK Tyres and Apollo Tyres have already entered a serious phase.
The Jumbo group has given a mandate to Ambit Finance for the sale of the
company.
A Shaw Wallance source
however confirmed that the company is on sale as the Dubai-based Jumbo group,
the parent body of Shaw Wallance, has decided to exit all its India ventures
as and when it gets the right price. He said, ‘If the price is right, we are
ready to sell. However, he said that although talks are continuing with
probable buyers no final decision has been taken.
The Shaw Wallace group has
been exiting its Indian interests ever since the demise of MR. Chhabria,
Chairman of the Dubai-based parent company Jumbo Group. In Falcon Tyres, the
promoter group holds 81.86% stake. Another 16.04% is held by the public and
non-promoter corporate holding is above 2% Falcon is an established player in
the Indian two-wheeler tyre market.
It sells its products under
the name ‘Dunlop’. Which has a significant brand equity in the tyre
industry. The company has a plant in Mysore and it has a capacity of 4.6m
tubes and 5.2m tyres. The company sells tyres under the Dunlop brand in the
domestic market and Falcon in the global market.
It has a large presence in
two-wheeler and three wheeler vehicle tyres. It supplies tyres to large
players like Hero Honda, Bajaj Auto and L.M.L.
Innovation is the Central
issue in economic prosperity
2005 Taipei International invention
show & Technomart, one of the world’s most advanced exhibition on inno8vation
and invention, is a unique opportunity for inventors, investors and invention
companies to gain international exposure. This event, from September 29 to
October 2, 2005 will let inventors plug their concepts into a rich frontier of
global marketing and manufacturing networks.
Inventors from across the
world with more than 1,000 invention to license, manufacture and market, will
use this venue to show their latest and most exciting breakthroughs and each
and every entry is issued massive review whatever the area, from nano-technology,
to transportation, and home-use products. More than 40,000 International
visitors around the world are expected to visit this venue. Many of them will
be the key gatekeepers of leading corporations.
National Technology Day
Celebration
IRMRA celebrated National
Technology Day on 13th May 2005 with great enthusiasm. IRMRA’s
scientists and all the technical staff members were present on this occasion.
Dr. M.K. Bharadan, Director, SASMIRA (Ministry of Textiles, Govt. of India)
Mumbai was the Chief Guest on this occasion.
Dr. Benerji, Director of
IRMRA in his inaugural speech narrated the importance of NTD from the
Country’s point of view and also briefed the participants about the various
technological development made by IRMRA in the recent past such as development
of various critical rubber parts/compounds & processes indigenously, important
projects successfully completed by IRMRA and the new Projects under
discussions. Patents applications submitted and the prestigious Projects from
multinational companies from abroad such as GE Plastic, USA, Indo Thai Project
etc. he assured the IRMRA will be always in the forefront on the
technological developments for rubber and allied industries.
A detailed power point
presentation on the R&D activities carried out in their sections, important
projects completed/underway, their achievements, patents Applications etc.,
were made by Dr. S. K. Chakraborty, P. Roy Choundhury. P.K. Das, Rajesh
Chowdhury & Yogesh J. Ner-the IRMRA Scientists.
The chief Guest, Dr. Bhardan
in his speech commended the efforts made by IRMRA in technological development
and its other achievements. Which ultimately benefit the rubber allied
industries. He also made a mention about the possible tie up to SASMIRA and
IRMRA for mutual benefits. He opined that IRMRA has he necessary capability to
be prominent R&D Institute of International reputation.
At the end Mr. D. R. Haibat
Administrative Officer thanked the Chief Guest, all the scientists and other
staff members for their efforts in making this National Technology Day
Celebration successful.
