Indo American News • Friday, June 11 , 2010
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Friday, June 11 , 2010
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Business IndoAmerican News
STOCKS • FINANCE • SOUTH ASIAN MARKETS • TECHNOLOGY
Tata Inaugurates Nano Plant in Gujarat after Exit from West Bengal
AHMEDABAD: Tata Motors’brand meter, snub-nosed car with a rear gasoline new plant for the Tata Nano at Sanand, engine. in Ahmedabad district of Gujarat, was The Nano is under close scrutiny at the inaugurated today by the Honourable moment after two of the cars caught fire Chief Minister of Gujarat, Mr. Narenearlier this year. Tata Motors is currently dra Modi, in the presence of the Chairinvestigating the incidents, and since May man of Tata Sons and Tata Motors, Mr. 24 it has been contacting all Nano owners Ratan N. Tata, Ministers of the Gujarat in order to inspect their cars. Government, top officials, vendor and The decision to inspect all Nano cars folsupplier partners, dealers and associlows a study by a 20-member internal team ates of the company. and an independent forensic expert. The plant’s inauguration marks the The plant has already directly employed culmination of the company’s goal of 2,400 individuals. The recruitment exermaking the Tata Nano freely available cise covered about 156 ITIs in Gujarat. As to hundreds of thousands of families, the capacity is increased, the project, along desirous of the car. The capacity of the The Tana Nano is now being assembled in Sanand, Gujarat after being driven away from West Bengal with the vendor park, is expected to generplant, to begin with, will be 250,000 by protests led by Mamata Banerjee. ate about 10,000 direct and indirect jobs. cars per year to be achieved in phases, At the vendor park, plots have already and with some balancing is expandable been allocated to 41 vendors. More will be ackhand state. Deliveries from the plant, including BS4 up to 350,000 cars per year. Further capacity Built with an investment of INR20 billion, the commodated subsequently. Vendors, accountexpansion has also been provided for in this Tata Nanos, will begin this month. The output, Sanand factory will have a capacity of 250,000 ing for about 80% of the value of components supplemented by the facility at Pantnagar location. cars in the first year, but that could eventually to be sourced from the park, have already Speaking on the occasion, Mr. Tata said, “We (Uttarakhand), will in the immediate phase rise to 350,000 per year, India’s biggest auto begun construction. In the interim, they will complete pending orders from the booking are happy that the Tata Nano has found its home supply the plant from their existing facilities in maker by sales said. at Sanand in Gujarat. We would like to thank ev- process of 2009. the country. Tata Motors, which controls U.K.-based Built in a record time of 14 months starting eryone who has made this possible, particularly To celebrate the inauguration of the plant, a luxury car brands Jaguar and Land Rover, began the Honourable Chief Minister, Mr. Narendra November 2008, the integrated facility com- deliveries of the Nano last July after receiving fleet of Tata Nanos driven by prospective cusprises Tata Motors’ own plant, spread over 725 Modi. We would also like to thank the people of a record 206,703 bookings during April-June tomers, who participated in an online contest Gujarat on this occasion. I am glad that we will acres, and an adjacent vendor park, spread over 2009. on www.tatanano.com, began a country-wide now be able to manufacture the Tata Nano at a 375 acres, to house key component manufacturdrive, called the Nano Superdrive, from Sanand Tata Motors plans to have delivered the plant, set up in record time by the Tata Motors ers for the Tata Nano. first 100,000 cars to showrooms in Delhi by today. The drive was flagged off by Mr. Tata. Deliveries from the new plant will start in team who have and continue to receive full supThe drive will cover 15,000 km touching 36 December. port from the Gujarat administration. This will June, but to help clear a backlog in orders, the cities across the country, before converging at Because of the backlog, the company isn’t now allow us to better meet the strong demand company will continue producing the Nano at taking any new orders for the 624-cubic centi- Sanand on June 28. its Pantnagar factory in north India’s Uttarafor the Tata Nano across the country.”
Reconciliation at Reliance: Anil Drops Defamation Suit vs. Mukesh MUMBAI: In yet another step towards making peace, Anil Ambani on Tuesday withdrew the Rs 10,000-crore defamation suit he had slapped on elder brother Mukesh in 2008. Anil’s advocate informed Justice Roshan Dalvi in Bombay High Court that he did not wish to proceed with the suit, but did not specify a reason for the withdrawal. In the suit, Anil had alleged that Mukesh defamed him in a June 15, 2008, interview to The Ambani brothers: New York Times. times. Two Indian newspapers that had reproduced the story had also been made respondents in the suit. This is the third action in a matter of a fortnight that indicates that the Ambani brothers are trying to heal the rift between them after they split their father’s empire and parted ways in June 2005. After five years of feud, the brothers unexpectedly called a truce on May 23 by cancelling
the non-compete agreement they had entered into in January 2006, which stopped the duo from entering each other’s business territories, and had been a source of acrimony. The brothers also pledged to expeditiously renegotiate a gas supply agreement on the lines of the Supreme Court verdict of May 7. Soon after the signing of the agreement, on May 29, Anil and his wife Tina stayed at RIL’s Sri Krishna Guesthouse in Tirupati. It was the first time Anil back to happier stayed there since the brothers parted ways, temple sources had said. Reliance employees are reacting positively to the thaw. “Harmony is better than acrimony at any given day and these developments are good for the two groups,” said a senior official at one of the groups who did not wish to be named. Shareholders of the Reliance ADAG have already benefitted from the “peace dividend” over the past fortnight. Stock prices of group companies such as Reliance Infrastructure, Re-
liance Power and Reliance Natural Resources Ltd (RNRL) have gone up from 12-26 per cent. Could the truce between the two groups also see a change in fortune for Reliance Industries? Over the past one year, RIL has seen its stock price fall about 6.7 per cent whereas the BSE Sensex is up 13.3 per cent over the same period. Apart from low margins in its key business — petroleum refining — RIL’s stock price has also suffered because of an absence of growth opportunities. Could that change? With the company’s annual general meeting round the corner, there is anticipation that chairman, Mr Mukesh Ambani, could make some
big ticket announcements of new investments. Five years back, he had announced RIL’s decision to go for a new refinery of 27 million tons at Jamnagar at the company’s annual general body meeting. “They could probably announce large investments but that’s unlikely to impact the stock price immediately. Such projects typically yield value over a longer period,” says an analyst who tracks the firm. Market watchers feel that the company could come out with announcements in power or infra sectors — which require large investments and strong execution skills.
world markets
Wednesday, june 09, 2010 dow jones
Gold 46.96 $1,229.20 Ind. rupee
9961.07 • 21.09 • 0.21%
nasdaq
2176.55 • 5.98 • 0.28%
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5106.22 • 13.35 • 0.26%
Karachi 100
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Pak. rupee
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Brent $73.96 Spot 2.60% Spot Bid Prices Bloomberg.com
INDO AMERICAN NEWS • FRIDAY, june 11 , 2010 • ONLINE EDITION: WWW.INDOAMERICAN-NEWS.COM
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