Friday, June 011 2011 , 210, .com ber 23 Septem y a -news d ri n F a c i r me indoa www.
September 23, 2011
www.indoamerican-news.com
27
IndoAmerican News
Business IndoAmerican News
STOCKS • FINANCE • SOUTH ASIAN MARKETS • TECHNOLOGY
China Steps Up Offensive, Says Oil Hunt Illegal
Tata Turnaround: JLR to Set Up New Automotive Plant in UK
MUMBAI (HT): When Jaguar Land Rover (JLR), which cost Tatas $2.5 billion (Rs12,500 crore in 2008), dragged Tata Motors into the red with a consolidated net loss
BEIJING (HT): Citing national interest, China on Monday upped the ante against exploration of oil and gas in the South China Sea by India’s ONGC Videsh Ltd (OVL), saying any such project without Chinese approval would be illegal and invalid. Chinese foreign ministry spokesperson Hong Lei did not name India but urged “relevant countries” to refrain from unilateral actions that may “complicate and magnify” the dispute. China’s mounting opposition comes less than a week before planning commission deputy chairman Montek Singh Ahluwalia will lead a high-level team to Beijing from September 24 to 26 for the first India-China Strategic Economic Dialogue. HT had broken the story last week about the diplomatic row between India and China over OVL’s activities in what New Delhi described as Vietnamese blocks in the South China Sea. Beijing issued a demarche to New Delhi over the issue and a Chinese foreign ministry spokesperson expressed her country’s objections to OVL’s exploration a day later.
engine plant to make advanced low emission 4-cylinder JLR petrol and diesel engines. This comes amid progressing talks over a joint-venture plant in
Tata has successfully purchased Jaguar Land Rover to catapult itself into the world car market.
of Rs2,505 crore in the recessionridden 2008-09, many dubbed this acquisition as a foolhardy step of a cash-rich Indian corporate. Two years down the line, Tata Motors turned around to post a record Rs9,273 crore-profit with JLR contributing 60% of its Rs1,23,133 crore revenue and much more to the bottomline in 2010-11. While critics swallowed their words, Ratan Tata’s dream of catapulting Tata Motors into a global automotive giant seems not too far from fruition. While his other dream — a people’s car which will take scooter-driven families to proud car owners — stutters with varied production, safety and marketing challenges, JLR has successfully waded through the troubled waters of slowdown in the West. JLR, which was facing plant shut down not long ago, has expanded production, opened a new assembly plant in India and is now building a Rs2,760-crore (£355 million)
JLR’s fastest growing market China and an encouraging 18,000 prelaunch booking for the upcoming smaller Range Rover — Evoque. The new plant fits into the longterm strategy of JLR to develop fuel-efficient smaller engines and a 25% reduction in CO2 emissions. More importantly, the new plant will relieve JLR of constraints in engine supply from Ford when its sales volume is poised to cross 300,000 units with the addition of Range Rover Evoque, Jaguar XF and new Freelander. The sales volume was 26% up at 243,000 last fiscal. In the first five months this fiscal, despite its key market Europe giving trouble signals, the cumulative sales is up 10% at 102,451. Ralf Speth, CEO of JLR said the company would annually invest £1.5 billion (Rs11,200 crore) for the next five years. The new engine plant is expected to create 2,000 direct employment in Britain alone.
China is calling the shots on Indian oil exploration in the South China sea without approval to be illegal and invalid.
Hong said at a daily media briefing on Monday, “Any country engaged in oil and gas exploration activities in this jurisdiction without the approval of the Chinese government constitutes an infringement upon China’s sovereignty and national interest and are therefore illegal and invalid.” India’s stand has been that the exploration by OVL is being carried
out in two Vietnamese blocks in accordance with international rules and would continue. External affairs minister SM Krishna had during his visit to Hanoi last Friday said that the energy sector, including oil and gas exploration, would be the key area of cooperation between India and Vietnam.
India, Mexico to Deepen Agriculture Trade Ties
NEW DELHI (ET): Blessed with similar climatic conditions suitable to agrarian activities, India and Mexico promised to deepen their partnership in agri-biotechnology, farm equipment, fertilizers and agro-chemicals. “India represents an opportunity for diversification. Trade is a twoway street, so we are ready to increase and diversify our imports from India,” Mexico Vice-Minister of Agriculture Mariano Ruiz Funes said at a seminar organized by FICCI here. He stressed on mutual cooperation in areas like agricultural machinery, spices, meat and poultry, seeds and grains and dairy products. At present, the balance of trade with respect to agricultural products is in favour of India, Funes said,
adding that Mexico is looking forward to working with India to increase each other’s agri trade. While Mexico exported agri and agri food products worth $ 5.1 million to India in 2010, it imported items from India valued at $ 69.9 million, giving bilateral trade figures. India’s exports to the Latin American nation include sesame seeds, plants for perfume or medicine and tea extracts. The major products exported by Mexico to India are chickpeas, beer, instant coffee, fish flour and essential aromatic oils. Highlighting that India and Mexico shared similar geo-climatic conditions, Ministry of Agriculture Joint Secretary S K G Rahate said there is huge scope for mutual
cooperation in areas like improved seeds and farm equipments. He said an MOU was signed between Indian Council of Agricultural Research (ICAR) and Mexico’s National Institute of Research on Forestry, Agriculture and Livestock during the visit of Union Agriculture minister Sharad Pawar in September, 2010, to promote joint research . Stressing on further technological cooperation between the two countries, Rahate said Mexican wheat varieties were used for producing the Indo-Mexican hybrids that were the backbone of India’s Green Revolution in the 60s. Mexican Ambassador to India Jaime Nularat said bilateral relations between the countries were “solid” and based on shared values.
To subscribe, Visit us Online today!
m o c . l dea
y l i a amd
i
INDO AMERICAN NEWS • FRIDAY, SEPT 23, 2011 • WWW.INDOAMERICAN-NEWS.COM
For Trade Inquiries, Call 832-368-4012 713-789-NEWS