Michelin announces Rs 4,000 crore investment in India
French tyre manufacturer Michelin will set up a new manufacturing facility at Gummidipoondi (about 40km from Chennai), for which it will invest Rs 4,000 crore over a period of seven years. Michelin intends to produce truck and bus radial tyres at this plant, which is expected to be operational by 2012. These tyres will initially be meant only for the Indian market, though Michelin may also cater to some overseas markets at a later stage.
Michelin's tyre manufacturing facility will be situated on a 290 acre chunk of land situated in the SIPCOT industrial estate at Gummidipoondi. Michelin, which already supplies tyres to companies like Honda, Mercedes-Benz and Volvo in India, currently imports most of its tyres from its plant in Thailand.
This isn't Michelin's first foray into the Indian tyre market. The company first came to India with MRF in the early-1990s (the partnership was dissolved in the mid-1990s) and then set up a joint venture (for truck and bus radial tyres) with Apollo Tyres in 2003, which also ended in 2005.
[Via: cartradeindia]
Hero Honda posts Rs 500 crore profit for April-June
Hero Honda, India's largest two-wheeler manufacturer, has reported a net profit of Rs 500.1 crore for the period April-June 2009, an 83% increase over the profit for the corresponding period in 2008. This increase in profit is, according to the company, on account of lower input costs and better sales figures.
Hero Honda's sales for April-June 2009 amounted to Rs 3,811 crore, a 34% increase over last year's figure. Gross profit stood at Rs 604.5 crore, a 97% increase over the figure reported in the year-ago period.
With Bajaj Auto lagging far behind at a distant second spot, Hero Honda is currently the undisputed no.1 two-wheeler manufacturer in India. The company is expected to launch a new 'premium' motorcycle - the Karizma ZMR - in the domestic market over the next few weeks, with which it hopes to take on bikes like the Bajaj Pulsar 220 DTS-i and the Yamaha R15.
[Via: indiaautomotive]
Hero Honda on growth path, posts Rs 402 crore profit
India's largest two-wheeler manufacturer, Hero Honda posted a profit of Rs 402.2 crore during the quarter ended 31st March 2009. This figure represents a 35% increase over the Rs 298.7 crore in profits, which the company earned in the year-ago period.
Hero Honda's sales for the quarter stood at Rs 3,411.8 crore, a 22.34% increase over sales of Rs 2,788.65 crore which the company netted in Q4, FY 2007-08.
According to Hero Honda, a high percentage of its sales come from rural and semi-urban areas, where customers tend to buy vehicles on full cash down basis rather than opt for bank loans or finance schemes. Hence, sales haven't been severely affected by the ongoing credit crunch.
Hero Honda has also implemented significant cost-cutting measures, hence boosting profitability, and the company also benefited from tax savings due to the location of its newest factory near Haridwar, in Uttarakhand. Finally, the fact that steel and aluminium prices have come down also helped the company in lowering overall cost of production, increasing the company's profit margins in the process.
Hero Honda earned Rs 12,319.12 crore during 2008-09, a 19.2% growth over the year-ago figure. The company's net profit for FY 2008-09 stood at Rs 1,281.8 crore, a 32.4% increase over its profits in the previous financial year.
Between the 1st of April 2008 and the 31st of March this year, Hero Honda sold 3.7 million units (including domestic sales and exports), a 12% growth over sales in the year-ago period. The 12% growth is especially significant in light of the fact that the entire two-wheeler industry in India grew by only 3% in the same period.
[Via: indiaautomotive]
You need to log in to vote
The blog owner requires users to be logged in to be able to vote for this post.
Alternatively, if you do not have an account yet you can create one here.
Powered by Vote It Up