Automobile sector growth to see 5 million new jobs in 3 years
Monday, 25 January 2010
26 Jan 2010;business-standard.com:Swaraj Baggonkar:Mumbai: India's emergence as a centre of manufacturing for international vehicle makers, which are adding huge capacities, will result in the hiring of five million new employees over three years, according to estimates collated by the country's apex automotive body. This is the total of both, direct and indirect employment growth as a result of the expansion. Estimates put together by the Society of Indian Automobile Manufacturers (Siam) say this will be the extra added between now and 2012, to support the ever-increasing demand for new vehicles. And, says Siam, a further seven million will be added in the period from 2012 to 2016, almost doubling the count to 25 million from the present 13 million; again, this comprises both direct and indirect employment. This would make the automotive sector one of the largest job generating sectors in India in the current decade. Of the five million new jobs in the next three years, about 25 per cent will be for managerial functions, 60 per cent will be for skilled labour and the remaining lot will comprise unskilled labour. The news comes after the industry had to resort to lay-offs a little over a year earlier, when lack of demand for new vehicles led to a severe drop in fresh orders for the component makers. Scores of small and medium enterprises were forced to shut shop and liquidate assets to pay off debts and salaries. S Y Siddiqui, managing executive officer - administration (HR, Finance and IT), Maruti Suzuki, said: "The industry association strongly feels that all three segments in the auto industry — original equipment, suppliers and service providers — will be hiring in a big way in the next few years, as opposed to only OEMs doing the bulk of the hiring." Nissan and Renault, Toyota Kirloskar Motors, Honda Siel Cars, Mahindra & Mahindra, Tata Motors, Maruti Suzuki, General Motors, Ford, Volkswagen and Mercedes-Benz are among several other large, medium and small component supplying companies making huge investments in setting up new production plants across the country. Some of the planned investments, such as that of companies like Renault, Toyota and Honda, which were frozen in the year 2008 due to financial woes hitting the parent companies located overseas, will be resumed this year. The robust growth in demand for new vehicles seen so far this financial year (till December), where cars and bikes reported an increase of 24 per cent and 22 per cent, respectively, is giving enough reasons for some engineers of Indian origin to return to India, leading to an inward flow of new talent and knowledge, according to Siam. Dilip Chenoy, director general, Siam, said: "Many automobile manufacturers are on the speedy road to expansion now. Rural prosperity and improved infrastructure are major factors which have resulted in the growth of the auto industry." Besides adding capacity, some companies are investing separately in vehicle design and technical centres which play a pivotal role in all research and development (R&D) activity. India has become the hub for developmental activities of new cars for not only Asia but established markets such as the US and Europe.
26 Jan 2010;dailypioneer.com:New Delhi:Mahindra & Mahindra on Monday reported a massive surge in its profit at Rs 413.70 crore for the third quarter compared to 3.60 crore for the same period last fiscal on the back of a healthy growth in both automotive and farm equipment segments. “While the lower base for the third quarter last year has an impact on profits...The financial results of the company for the quarter are nevertheless outstanding largely due to a strong sales performance by both Automotive and Farm Equipment sectors,” said a statement from Mahindra & Mahindra. The company’s total income for the quarter ended December 31, 2009, stood at Rs 4,521.47 crore, while the same was at Rs 2,929.54 crore in the year-ago period. M&M said it has incorporated the figures of the company’s erstwhile subsidiary Punjab Tractors Ltd (PTL) which was merged with the company. “Since the results for the previous year’s nine months period ended December 31, 2008, include the PTL results only from August 2008 to December 2008, they are not comparable,” the company said. M&M’s automotive segment’s revenue was at Rs 2,556.81 crore during the third quarter, while it was Rs 1,370.22 crore during the same period last fiscal. Its farm equipment segment reported a third quarter revenue of Rs 1,928.18 crore. It was Rs 1,501.79 crore during the year-ago period. “The Government’s stimulus package and easy availability of retail consumer finance continued to be conducive for good sales,” M&M said, adding that low commodity prices compared with previous year also helped matters. The company reported a sale of 50,602 units of utility vehicles (UVs) during the October-December quarter. Last year in the same period 29,184 units were sold. The main volume growth drivers were Xylo, the new refreshed version of Scorpio and the Bolero. M&M said its volume growth in the pick-up segment has grown during the quarter. In the farm equipment segment, domestic tractor sales under the Mahindra and Swaraj brands were at 41,074 units. In the Q3 of last fiscal, the company had sold 29,754 units. The company board had approved sub-division of shares in 1:2 ratio, which means a share with Rs 10 face value will be divided into two shares of Rs 5 each, it said.
25 Jan 2010:business-standard.com:Ajay Modi:New Delhi: Unlike 2005, when the country’s private refiners were late in producing Euro-III compliant fuel, this time the private sector has taken a lead, with Reliance Industries Ltd (RIL) becoming the first Indian refinery to produce Euro-IV compliant diesel. The first cargo of 25,000 tonnes of Euro-IV grade diesel from RIL’s refinery at Jamnagar was shipped by Hindustan Petroleum Corporation Ltd (HPCL) on Friday, said an informed source. This is also the first coastal supply of Euro-IV diesel for the Indian market. Sources said RIL was also gearing up to produce the higher grade of petrol. With the private refiner now ready to produce the higher grade, it will be easier for oil marketing companies to ensure the availability of Euro-IV diesel at the retail outlets of all 13 major cities of India by April 1, the target date. An RIL spokesperson confirmed the sale of diesel. He did not give details on total production, citing trade confidentiality reasons. Indian Oil Corporation, the biggest oil marketeer, and Bharat Petroleum Corporation Ltd have recently floated tenders to import 120,000 tonnes and 60,000 tonnes of Euro-IV diesel, respectively. Government policy calls for petrol and diesel meeting Euro-IV standards are to be supplied in 13 cities, including Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Ahmedabad, from April 1. Euro-III grade fuel is to be supplied across the rest of the country from the same day. The former deadline will be met. Sales of Euor-III will begin in a phased manner between April 1 and October 1.
25 Jan 2010;business-standard.com:New Delhi: ONGC feels Iran offered the stake to India because of its expertise and hence it deserves three-fourths of the share. Oil and Natural Gas Corporation (ONGC) and Hinduja Group are at loggerheads over a stake in an Iranian gas field, with the London-based group seeking half of the 40 per cent interest assigned to India but the state-owned company willing to concede only one-fourth. Hindujas want the stake in Phase-12 (SP-12) of the giant South Pars gas field to be split equally between its subsidiary Ashok Leyland Projects Services (ALPS) and ONGC Videsh (OVL), the overseas arm of ONGC, sources in know said. The state-owned firm, however, feels Iran offered the stake to India because of its expertise in the business and so it deserved three-fourths of the stake on offer. ALPS has no experience in oil and gas exploration and production (E&P) and so should be confined to a smaller role, ONGC feels. After years of tough negotiations, Iran last month signed agreements to give the ONGC-Hinduja combine a 40 per cent stake in SP-12. ONGC and ALPS, along with Petronet LNG, also signed a pact to buy 20 per cent stake in Iran LNG, that is building a $4.32-billion plant on the southern coast to convert gas from SP-12 into liquefied natural gas (LNG) for exports. The division of the stake within the Indian group was to be decided internally, the source said. Hinduja also wants 10 per cent stake in the LNG plant and the balance to be split equally between ONGC and Petronet. ONGC, on the other hand, is seeking a greater role even in LNG project. Sources say ONGC feels Iran offered SP-12 to the Indian venture because of its success in discovering gas in the Farsi offshore block located in the eastern part of the Persian Gulf off the Iran coast near the Saudi border. OVL, along with Indian Oil and Oil India, will invest $5.5 billion in developing the Farzad-B gas field in the block. Phase 12 is the largest of the 28 phases in which the South Pars gas field in the Persian Gulf has been divided and will cost $7.5 billion. Petropars, a subsidiary of National Iranian Oil Co, would hold 40 per cent in SP-12 while the remaining 20 per cent would be with Sonangol of Angola. Iran will also sell 6 million tonnes a year of LNG to India to meet its growing energy needs. Sources say Iran does not give foreign firms ownership of oil and gas and instead pays a fixed fee on the investment made. Indians would, however, get LNG in return. SP-12 is to produce 3 billion cubic feet per day of gas, two-thirds of which is to be converted into LNG for exports. Gas from SP-12 would go to Iran LNG, which is building a $4.35 billion plant at Tombak Port by 2011, to turn it into liquid state so that it can be shipped in cryogenic vessels. Phase 12 field is the southeastern block of the South Pars gas field and is on the border with Qatar and extends over 150 sq km. At 35 tcf, it contains almost 7 per cent of reserves in the South Pars gas field.
21 Jan 2010;business-standard.com:New Delhi: Oil and Natural Gas Corporation (ONGC), India's largest oil and gas producer, will see crude output fall short by 1 million tonnes of the targeted 25.76 million tonnes this fiscal. "Production is declining faster than anticipated," ONGC Chairman and Managing Director R S Sharma told reporters here. The output is declining as fields like Mumbai High, Neelam and Gandhar mature and age, he said. The company plans to bring into production smaller and marginal fields to increase output. "We anticipate output will rise to 27-28 million tonnes by 2012-13," he said. ONGC saw production fall 3 per cent in the December quarter to 6.7 million tonnes, while natural gas output rise was almost flat at 6.45 billion cubic metres. Sharma said ONGC board has approved an investment of Rs 2,163.65 crore for integrated development of D1 marginal field in Mumbai offshore. The project will be completed within 27 months from the date of award. Peak envisaged oil production from D1 field is expected to be about 36,000 barrels of oil per day during 2012-13. The board also approved investment of Rs 723.64 crore for acquisition of a new Multi Support Vessel (MSV). ONGC at present has a fleet of 4 MSVs, out of these 2 MSVs are owned by ONGC and 2 MSVs are hired. The scheduled date of commissioning of this MSV is September, 2012, he said. The ONGC board has also approved the draft of the Memorandum of Understanding (MOU) to be entered with Bharat Petroleum Corporation (BPCL) for cooperation in gas and LNG business. ONGC Videsh Managing Director R S Butola said the overseas investment arm of ONGC is planning to spend about Rs 8,600 crore next fiscal mostly on existing operations. The capital expenditure in this fiscal was Rs 7,000 crore. "We want to consolidate. Our philosophy will be to selectively expand and expanding in countries where we already have operations," he said. "We can go into new countries only if the offer is irresistible." The capital expenditure for next fiscal would be mostly met through internal accruals which are Rs 4000-4,500 crore this year and would rise slightly next fiscal, he said.
Chevron restructuring plan puts 1,400 jobs at risk: Report
Thursday, 21 January 2010
21 Jan 2010;economictimes.indiatimes.com:LONDON: American oil major Chevron's announcement of a restructuring plan for its global refining operations has put as many as 1,400 jobs at its Britain refinery under threat, says a media report. According to 'The Times', as many as 1,400 jobs at one of Britain's largest oil refineries are under threat after Chevron said it was planning a restructuring that would involve sweeping cuts across its global refining operation. The announcement has raised fears relating to Chevron's refinery at Pembroke in South Wales, which employs 600 permanent workers and 800 contractors, the daily said. A UK spokesman for Chevron, confirmed that the future of Pembroke was being considered but that no final decisions had been taken, The Times said. Moreover, any job cuts at Pembroke would represent a crushing blow for the economy of Wales, which has been among the hardest hit regions in the UK during the recession. Chevron has said that more information would be available in March and that the reorganisation would be complete by the third quarter. The oil major will release its financial results for the fourth quarter of last year. The oil refining business has been hit by a combination of low margins and recession, while threat of tougher carbon regulation is also a concern, particularly for operators of plants in Europe.
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