India Auto Components

The Indian auto industry is seeing unprecedented growth. T he auto component industry too is expected to grow five times to USD 110 billion by 2020. The industry expects investments to the tune of USD 35 billion will come in and they will be able to create over one million new jobs.

Auto component maker Sona Koyo is eyeing a 15-20% growth in revenues this year. The company expects the automotive industry to grow 15% overall. The company has an investment plan of Rs 80 crore in terms of capacity expansion.

How are auto-part makers gearing up with surging demand? - Moneycontrol.com

A report by KPMG on the Evolving Dynamics of the Indian Automotive Industry, released on Wednesday, says that while the auto sector in India may have much to look forward to in terms of growth in the next few years, the industry has some key challenges over the long-term in terms of developing greener vehicles and providing an alternative to private transport.

According to the report, over the medium term, the twin phenomena of low car penetration and rising incomes make a good case for growth. At the same time, considering the unique characteristics of the Indian market, affordability, fuel economy and rural demand are expected to drive this growth. Besides, the survey also does not foresee any major consolidation happening in the industry in the next few years.

Depending on the need to access technology, manufacturing facilities, services and distribution networks, some consolidation could be expected in future but anything big in the form of brands being bought or sold or companies exiting the market are more likely to be exceptions, it adds.

The medium-term outlook points to stable growth, no doubt. But the report points out that the long-term outlook is still fluid, given that the globally evolving phenomena of a greener, hybrid vehicle is yet to take off in a big way here. Nevertheless, considering the increasing availability and use of CNG vehicles and the prevalence of electric cars and two-wheelers, the Indian auto industry seems to evaluating these two paths in its move towards greener vehicles. That said, the study explains how this move will bring both opportunities and challenges for auto manufacturers in future. In terms of opportunities, India is well placed to leverage on its current status as a hub for small cars and as a cost-efficient market to become an export hub for green cars and also a sourcing hub for components for green vehicles.

No major consolidation in auto sector, says KPMG - Hindu Business Line

Celgene Names Bunge's Jacqualyn Fouse CFO; Bunge Appoints Interim CFO - Update (RTTNews) - The Indian market ended a volatile session modestly higher on Thursday, helped by positive global cues. The 30-share BSE Sensex ended up 47 points or 0.26% at 18,226, with eighteen of its components ending higher. The 50-share Nifty rose by 16 points or 0.28% to 5,478 on the lat day of August series F&O contracts.

The BSE mid-cap and small-cap indexes closed on a flat note, and in the broader market, declining shares outpaced gaining ones by 1588 to 1328 shares. Sector-wise, FMCG, power, capital goods, public sector, banking and auto stocks edged higher, while oil/gas, realty and consumer durable stocks fell on profit taking. NTPC, DLF, ITC, SBI, HDFC, Bharti Airtel, Jindal Steel, Tata Power and Tata Steel were among the prominent gainers.

On the flip side, Reliance Communication (down 2.35%), Sterlite Industries (down 1.23%), Reliance Industries (down 1.18%) and Hindustan Unilever (down 1.08%) led the decliners.

Elsewhere, most Asian stocks rose on Thursday, lifting the MSCI Asia Pacific index up by about half a percent, as investors resorted to bargain hunting in beaten-down riskier assets, drawing support from a late-session recovery on Wall Street overnight, higher U.S. futures and firm commodity prices amid a weakening greenback before the release of a U.S. report on initial jobless claims later in the day.

Indian Market Ends Modestly Higher On F&O Expiry - RTT News

Atlanta-based MFG.com, an online sourcing marketplace for manufacturers seeking custom parts, standard components and assemblies has launched an entry level product for Gujarat-based SME units involved in manufacturing. The new product offers a faster, easier, more efficient and cost-effective model to source products compared to trade shows and other customer identification initiative by GIDC and other manufacturing units around Ahmedabad, Vadodara and Rajkot.

MFG.com already has a sizeable customer base in India with around 40,000 customers who have registered for free membership accounts, with the maximum coming from Gujarat, according to a release from the company. Its platform operates on a subscription-based model with suppliers paying an annual subscription fee starting US$2,500 and going up to $20,000 per annum. The new platform will allow members from across Gujarat to access key features of MFG.com—from RFQ (request for quote) to supplier selection and the final payment transaction at a nominal price.

MFG.com provides an intelligent platform to connect manufacturers and suppliers with the right expertise, capacity and credentials at the right time thereby driving efficiencies at all levels of the online sourcing process.

MFG.com provides an intelligent platform to connect manufacturers and suppliers with the right expertise, capacity and credentials at the right time thereby driving efficiencies at all levels of the online sourcing process. “The manufacturing sector is growing at over 17 per cent year on year and exports will touch US $300 billion by 2015. The domestic market is itself around $100 billion. More and more Indian SMEs are looking to take their products global and spend huge amount on traveling to trade shows or customer discovery initiatives. Our platform helps both the buyers and suppliers witness the prevailing trends of demand and supply in their relevant sectors on a daily basis and rapidly grow their business both domestically as well as globally from the comfort of their offices,” said Sanjay Shah, Managing Director, MFG.com India said.

MFG.com unveils cost-effective model for SME units in manufacturing - Business Standard

Aug. 24--As the private equity (PE) and venture capital (VC) space becomes increasingly more competitive, alternative investors are turning their attention to the smaller cities and towns of India in search of opportunities.

India has close to 300 funds with a majority of them engaged in growth equity--investing in relatively mature companies seeking to expand--and backing small and medium enterprises.

Transactions in this space typically range between $20 million ('93.2 crore) and $50 million, and such opportunities are plentiful tier II and tier III cities. Tier II cities include Pune, Mangalore, Ahmedabad, Nagpur and Coimbatore that are smaller than the metros such as Delhi, Mumbai Chennai and Chennai. Bhopal, Raipur, Patna and Ghaziabad count among tier III cities.

PE investments in India in the first half of calendar 2010 reached $4.57 billion, more than three times the $1.5 billion recorded a year ago, according to Venture Intelligence, a Chennai-based research service focused on PE and mergers and acquisitions. Investor appetite has revived with accelerating economic growth.

Investors heading to smaller cities for opportunities - American Chronicle