Friday, February 26, 2010

The Bombay Chamber of Commerce and Industry rates the Budget a 7 on a scale of 10

Mumbai, February 26, 2010: Mr. Bharat Doshi, President, Bombay Chamber of Commerce and Industry, on behalf of the Chamber's Managing Committee and the invited experts, rated the budget a 7 on a scale of 10. He stated "the Budget provides the right balance between inclusive growth and fiscal discipline". 

While enhancing the outlays on various schemes for rural areas as well as for housing and infrastructure, the Finance Minister has ensured that fiscal deficit was limited to 5.5%. The projected decline in the fiscal deficit for 2011-12 and 2012-13 gave the right signal on the future direction of fiscal management. 

Mr. Bharat Doshi commended the Finance Minister for excellent expectation management during the weeks preceding the budget so that the rollback of 2% in Excise was not received as a shock. 

While reduction in the surcharge on corporate tax was welcome, the increase in MAT from 15% to 18% was considered steep. Emphasis on R&D by a higher weighted deduction was a welcome move. 

Maintaining of the service Tax at 10% came as a pleasant surprise for the industry. 

The continued focus by increasing the outlay in rural area as well as increase in agricultural credit from Rs.325,000 crores to Rs.375,000 crores was justified based on the experience of the last 9 months and the factors that helped spur the economy. 

While noting the restoration of the basic duty on crude petroleum of 7.5% on diesel and petrol, Mr. Doshi expressed concern about the likely inflationary impact of this increase. 

Mr. Bharat Doshi also emphasized that for the first time the budget was used as a platform to convey that there were no differences between the various wings of the Government and the FDI policy announced by DIPP in March reflected a firm view of the government. 

On a final note, the Finance Minister did make a very positive use of the budget to make policy pronouncements about the FDI, Financial Sector and Judicial sector reforms, roll-out of the GST, DTC, and setting up of Technology Advisory Group for unique projects under the Chairmanship of Mr. Nandan Nilekani.

Monday, February 22, 2010

Mahindra & Mahindra and Mitsubishi Agricultural Machinery tie-up to deliver FarmTech prosperity

February 11, 2010, Mumbai: Mahindra & Mahindra Ltd. (M&M), one of the world’s top tractor brands, and Mitsubishi Agriculture Machinery Company Co. Ltd. Japan (MAM) today signed a License Agreement for a strategic transfer of agricultural machinery technology. This agreement, which outlines an association to provide mechanization for crop specific solutions, was signed at the Mahindra Group’s headquarters in Mumbai, by Mr. Shimizu, President - MAM and Mr. Anjanikumar Choudhari, President - M&M Farm Equipment Sector (FES) & Member of the Group Management Board.

The agricultural machinery technology is being licensed to M&M Farm Equipment Sectors’ Applitrac Business, for manufacturing in India. The agricultural machinery will be sold under the Mahindra Brand name in the domestic market, in addition to exports to China & SAARC countries.

Mahindra & Mahindra’s Farm Equipment Sector has envisaged a new vision of delivering prosperity to farmers across rural India by providing innovative crop specific farm technologies aimed at enhancing productivity, aptly termed as ’FarmTech Prosperity’. The License Agreement with MAM is yet another step towards achieving this vision.

Speaking on this occasion Mr. Shimizu said, “We have been working with the Mahindra team in the US for over 8 years now. We were impressed with their initiative of ‘FarmTech Prosperity’ for Indian farmers. Mahindra has won the prestigious Japan Quality Medal (JQM) and we found a common DNA working with them in India.”

Mr. Anjanikumar Choudhari added, “We are very proud to be associated with Mitsubishi Agricultural Machinery, a reputed global leader in the farm machinery segment. This license agreement will facilitate manufacturing of an extensive variety of farm machinery to provide better skillful mechanization to the farmers.”

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Friday, February 19, 2010

Anand Mahindra is Ernst & Young Entrepreneur Of The Year 2009

Anand Mahindra was named the Ernst & Young Entrepreneur Of The Year 2009 at a function in Mumbai on February 16, 2010. Mahindra will represent India at the Ernst & Young World Entrepreneur Of The Year Award function at
Monte Carlo, Monaco, in May 2010.

“We have honoured Mahindra for taking his business to the next level, creating a visible impact both in local and global markets, and for the sheer value his businesses have provided to all stakeholders,” said a statement from Ernst & Young. “Mahindra and his entrepreneurial vision have truly set a higher benchmark for the Made in India brand, and hence we have honoured him with the award.”

Ernst & Young India launched the awards in 1999. Earlier recipients of the award include N R Narayana Murthy, Ratan Tata, Mukesh Ambani, Sunil Bharti Mittal, Brijmohan Lall Munjal, Kumar Mangalam Birla, Subhash Chandra, Anil Agarwal and Tulsi Tanti.

Thursday, February 18, 2010

Petrol & Diesel Prices may increase

Following the Kirit Parikh Panel report the Congress Core Committee comprising of Prime Minister Manmohan Singh and the party chief Sonia Gandhi are said to meet to study the recommendations put forward by the report which suggest radical overhauling of the fuel pricing system in order to reduce the burden of subsidies on the government.

If the report’s suggestions are accepted a rise in fuel price is imminent. The report has a seal of approval from the Oil Ministry which suggests a reform in the pricing of fuel, deregulation of prices and proposes an increase of Rs3/L for petrol and Rs2/L for diesel and Rs50/Cylinder for cooking gas and Rs3/L for Kerosene.

Source: Rediff

M&M and BAE join hands to form a Defense JV

On the defense front as the country gears up its defense, Mahindra and Mahindra have tied up with BAE System PLC,the worlds 2nd largest defense company in a joint venture to create Defense land systems India.

The JV will invest about 21.25 million US dollars over a 3 year period. The team will consist of about a 100 people who will work in the existing AXE High Mobility Vehicle along with other bullet proof versions of the Mahindra Scorpio, Bolero, Rakshak, Marksman Light Armored Vehicle and Rapid Intervention Vehicles. The companies have also been working on a mine protected vehicle specifically for the Indian Armed Forces.

Mahindra and Mahindra have a 74% stake in the JV. Anand Mahindra the Vice President and the Managing Director of the Mahindra Group said that the venture would benefit all parties involved and that the company was looking towards making a major contribution to the security and economy of India.

Mr. Deepak Chhibba was appointed as the CEO and Mr. Arne Berglund as the deputy CEO for the JV. Deepak Chhibba was earlier EVP International Operations Mahindra & Mahindra and has over 32 years industrial experience and Arne Berglund, was previously a director at BAE Systems, Global Combat Systems, in the UK.

Two business giants. One truck company.

Mahindra Navistar trucks have been introduced in India by Mahindra Navistar Automotives Ltd. (MNAL). The company is a 51:49 joint venture between two global business leaders – Mahindra & Mahindra Ltd. (M&M) and Navistar Inc. USA. Our aim is to provide high performance solutions for every commercial vehicle segment right from 3.5 tonne GVW to 49 tonne GVW. Our product range will be engineered to fulfill the requirements specific to Indian business, with the technological support of Navistar. The Mahindra Navistar trucks are manufactured at M&M’s new Greenfield Plant at Chakan, near Pune. It is a state-of-the-art manufacturing facility spread over 700 acres with investments of over Rs. 4,000 crore. The Mahindra Navistar team has over 800 people involved in the development and support of its Indian products. A number of exclusive dealerships in addition to the existing M&M centres are being set up to foster the sales and service network for the company.
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