30 June 2009;business-standard.com:New Delhi: For the fourth time in two months, state-run oil firms today hiked jet fuel or aviation turbine fuel (ATF) price by more than 6 per cent on firming international oil prices. Indian Oil, Bharat Petroleum and Hindustan Petroleum raised ATF price by Rs 2,306 to Rs 38,558 per kilolitre in Delhi effective midnight tonight, an IOC official said. The hike comes on back of over 12 per cent hike on June 15. ATF price on that day were raised by Rs 3,949 to Rs 36,252 per kilolitre in Delhi. International crude oil prices have firmed to a seven-month high of $72 per barrel on hopes of demand revival in US. The three state-run retailers had from June 1 raised jet fuel rate by an average of Rs 108 per kl, which came on the back of a 1.8 per cent hike in rates on May 16. In Mumbai, home to the nation's busiest airport, the rate will go up from Rs 37,367 per kl to Rs 39,789 per kl. The rise in ATF price, which constitutes 40 per cent of airlines' operating cost, may further put pressure on cash-strapped domestic carriers. No comments from any of the leading airlines were immediately available on the latest price hike. Jet fuel in Kolkata will be dearer at Rs 46,711 per kl from Rs 44,289 per kl, while in Chennai the price has been raised by Rs 2,500 per kl to Rs 42,524 per kl. ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August last year on international crude prices touching a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November. The three firms, which revise jet fuel rate every fortnight based on trends in international markets, had on April 16 increased ATF rate by about 6.7 per cent. This was followed by a marginal reduction in rates by one per cent on May 1.
Oil spikes to 8-month high on brief Brent bid frenzy
30 June 2009;economictimes.indiatimes.com:PERTH: Oil prices jumped more than 2 percent to an eight-month high above $73 a barrel on Tuesday, as a sudden spike in Brent buying pinned on fund positioning ushered out the market's best quarterly gain since 1990. While the rally drew support from fresh attacks on oil facilities in Nigeria as well as improving risk sentiment aided by rising equity markets, traders said those factors were secondary to the sudden big Brent bid orders that triggered the frenzy, overwhelming liquidity during the thin Asian day. Trading volume in both Brent and U.S. crude oil futures surged to more than 10 times the norm for the Asian time zone as prices leapt more than $1.50 in under half an hour around 0200 GMT, the sort of move typically only seen in the event of hurricanes or other major disruptions. "It feels like short-covering because of stop orders left overnight," said a trader with a global investment bank. Both prices and volumes cooled slightly by midday, with U.S. crude for August delivery up $1.29 at $72.78 a barrel by 0405 GMT, off its earlier eight-month high of $73.38. August trade was 12,400 lots versus a few thousand lots normally. The main focus was on London ICE Brent crude, with volume in the front-month August contract surging to more than 17,000 lots versus the less than 1,000 lots normally, and prices spiking to a peak of $73.50 a barrel. Traders said bids for 500 or 600 lot clips spooked a market accustomed to 10-20 lot bids. By 0407 GMT, Brent was up $1.66 to $72.65 a barrel. Trading activity in U.S. gasoline and heating oil, which expire at the end of the day, was minimal. Most traders were quick to point the finger at one or several big funds, either closing out loss-making positions, dressing up returns by boosting prices at the end of the quarter or perhaps taking a position in anticipation of a Q3 influx of new funds. "This could be end of quarter movement, and traders are trying to push prices higher and then selling before closing their books," said Mark Pervan, senior commodities analyst at ANZ Bank. "I haven't seen any new catalyst on the news front." Others were more blunt about the unexplained surge in volume, which seemed to be counter-productive given the fact that any sizeable bid would drive up prices due to thin Asian liquidity. "The only reason to do that size at that time of day is to try to move the market or because you are an idiot," said one. Some analysts pointed to Nigeria, where the main militant group said on Monday its fighters had attacked an oil facility belonging to Royal Dutch Shell days after President Umaru Yar'Adua proposed an amnesty. Driven by hopes of a global economic recovery, oil prices are on track to post a near 50 percent jump in the second quarter, the highest quarterly percentage gain since 1990. Oil has rallied on hopes for an improving economic outlook and a growing appetite for risk among investors, a factor given further impetus by Asian and U.S. stock market gains. The International Energy Agency on Monday gave a mixed view of the medium-term outlook for the market, saying there was a chance of an extended economic contraction and the threat of a supply crunch had only receded, not gone away.
30 June 2009;business-standard.com:New Delhi: Petroleum Minister Murli Deora, at the inauguration of Indian Oil Corporation's Golden Jubilee celebration, said LPG booking can soon be done through SMS. "Recently, we have formulated Vision 2015 in the area of marketing. The LPG coverage is available to about 50 per cent of our population currently. Under the Vision, it is to be extended to 75 per cent by 2015," he said. For this, the existing scheme of LPG distributorship will be supplemented by a new Scheme of LPG Gramin Vitrak. "Innovative approaches such as accepting bookings for LPG through SMS and providing 100 per cent LPG coverage in cities with more than 5 lakh population will be undertaken," he said. "Also, a road map for expanding CNG supplies to 200 cities is being devised," he said. Speaking on volatility in international oil prices, he said the price of crude oil had gone up to $147 per barrel in the month of July 2008 and was down to $35 towards the end of the year. Alongwith the volatility, was the challenge of economic downturn facing the whole world. "We, however, faced effectively the challenge of the global situation," Deora said.
30 June 2009;dailypioneer.com:New Delhi: Passenger vehicle sales are expected to nearly double by 2014 from the current 18.9 lakh units, mainly driven by anticipated economic growth fuelling the aspirational lifestyles of consumers. According to global consultant Ernst & Young (E&Y), the total sales of passenger vehicles are expected to touch 37.5 lakh units within next five years witnessing an annual growth of 12 per cent. While domestic market is expected to contribute 27.5 lakh units to the total tally, the remaining would come from exports, an E&Y report said. “Economic growth, the main drivers for the growth in domestic market, supported by Government in the form of reduced excise duties, concessions on cleaner fuels and the ongoing improvement in highways,” it added.
29 June 2009;dailypioneer.com:New Delhi: Home grown major Tata Motors launched iconic brands of Jaguar and Land Rover on Sunday. While Jaguar has become one of the world’s leading producers of beautiful fast cars, Land Rover produces the world’s most versatile all-terrain vehicles, combining refined luxury with a true breadth of capability. “It’s quite a memorable day in the history and heritage of Tata Motors...JLR has been well received and well established in India (in the past), but over the years this brand has been disconnected from India,” said Tata Group Chief Ratan Tata. “Now, we have decided to extend the penetration of the two brands in India,” Tata added. “I think the cars will exhibit the levels of technology and levels of performance here,” he said, adding the two brands would give Indian public an opportunity to experience the “pleasure of driving the superior technology. Tata Motors completed the acquisition of the two British marquee car brands last year for $2.3 billion. About the two brands’ official entry into the country, Tata said: “I think the cars will exhibit the levels of technology and levels of performance here.” The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover. Jaguar originally manufactured sidecars that were attached to motorcycles and was called the Swallow Sidecar Company. The two brands would give Indian public an opportunity to experience the “pleasure of driving the superior technology” and now “we have decided to extend the penetration of the two brands in India,” he added. Asked about the current status of JLR asking for financial assistance from the UK Government, Tata said: “We are in discussion with the UK Government on loan guarantee. We are hopeful that we will find a solution to it. Our funding plans for JLR will progress further...” “Sustaining downturn is extremely important... I would like to see these two brands to come out of the downturn and the companies will have new vehicles and new models. “...The loan that we are talking to, would be allotted to the company by European Banks,” he added. Regarding cutting pension benefits of the JLR employees, Tata Motors Vice Chairman Ravi Kant said: “The discussion is going to start by the end of this year and will be closed by July next year.” On sharing, leveraging JLR’s strong markets, like the US, for Tata Motors’ products, the Tata group chief said the company does not have any such plans as the vehicles are in completely different segments. Tata, however, said: “We will work closely on R&D. We will share intellectual property, but we have never tried to merge the two brands with Tata Motors. Over time, the sophistication of dealing with customers and spares will start to commonalise between the two companies.” Asked if JLR would look for sourcing opportunities in India in the midst of its profits going down, JLR Chief Executive Officer David Smith said, “As a business sense, we see a whole range of countries, like India, China, North America and Europe. In the past, our team was working in exploring supply base in India, and will explore further.” The company’s focus is to reduce the input costs. “This country (India) is going to play a very important and long role for the two brands. Last year was very difficult due to global economic downturn, which affected the sales premium cars,” Land Rover’s Popham said.
Land Rover to make inroads into India's defence deals
29 June 2009;Swaraj Baggonkar:Mumbai: Apart from its usual business proposition of selling high-end sports utility vehicles, which were launched today in India, UK automotive brand Land Rover is talking to the Indian government for supply of sophisticated and modern military vehicles to the armed forces. The company is developing a new model in its research and development centre in the United Kingdom, which will primarily address the defence needs of most countries around the globe, including India, said a senior executive from Land Rover today. Bob Grace, director (overseas operations), Land Rover said, "We have already started the discussions with the Indian government for sale of Land Rovers, however we cannot comment on the status of the talks as it is confidential." According to estimates, the Indian government will be spending about $30 billion over the course of next five years to modernise its weaponry to counter threat from neighbouring China and Pakistan. Further, it is believed that the government is looking to spend Rs 3,000-4,000 crore for procurement of vehicles like heavy armoured trucks, armoured personal carriers and other tactical transport solutions for the defence sector this year alone. The new vehicle, which is built on a completely new platform by Land Rover, is also keen on winning orders from other regions like the European nations, China, Brazil and Russia. Land Rovers have been witnessing a steady growth in demand for its vehicles from these emerging economies. Land Rover is not new when it comes to development of military vehicles. The company has been building vehicles, including light 4X4 vehicles, which can be used in defence as well as peacekeeping roles for the armed forces, for over 60 years. A standard military vehicle from Land Rover is based on the Defender heavy-duty 4X4 platform. Defender is sold in a variety of body styles including station wagon, hard top, pick up, double cab pick up and utility station wagon. The military version of the Defender, however, is based on the same basic chassis with improved engine and powertrain, axle and bodywork. Land Rover will try to leverage Tata Motors’ expertise in selling the defence vehicles to the Indian government as the Indian truck maker has been supplying vehicles to the defence sector for nearly five decades. Tata Motors supplies vehicles like light armoured troop carrier, riot control vehicle, ambulances, short bus chassis and truck fire fighter, among other related products. It also supplies products to the Indian police and paramilitary forces. Apart from Tata Motors, companies like Ashok Leyland, Tatra Vectra, BEML and Mahindra & Mahindra also supply vehicles and related products to the Indian armed forces. Defence contracts from India and overseas will prove to be a major factor in driving growth and margins for Land Rover, which saw sales slump by almost 40 per cent last year. Land Rover saw sales of 120,000 units during the 10 months starting June 2008 against 198,000 units sold in the same period of the year previous to last.
See the 
