Speaking to reporters here on Monday, Chairman and Managing Director Shekhar Bajaj hinted that the company might enhance its investment in the Nashik company in the coming years, based on market potential. “Bajaj makes 280 million units of CFLs annually now, compared 350 million units of conventional bulbs. The relatively higher prices of CFLs limit volume growth, though not revenues. During the past year we also had to contend with higher costs of most inputs like aluminium, copper and zinc.”

A change in government policy which allowed recycling of CFLs could help, Mr. Bajaj felt. The future in lighting might belong to LEDs with their advantages like coloured and diffused light if the consumer wanted to, he added.

http://www.domain-b.com/companies/companies_b/bajaj_electricals/20100209_starlite_lighting.html

Sandero will be built on the Logan platform and will be the first product for both companies in the high-volume compact car segment. The car will come in both petrol and diesel versions and sources said the engines would fall in line with the small car definition of the government petrol engine below 1200cc and diesel below 1500cc with overall length below 4 meters to avail lower excise duty 

When contacted, an official for Renault refused to confirm. Pawan Goenka, head of Mahindra’s automotive division, said he was not in a position to make any immediate comment on the matter. “Nothing has been decided as yet. Talks are at a preliminary stage,” he said. 

The Sandero appears to fit perfectly in the scheme of things of both companies in the current market situation. For Renault, it gives an opportunity to enter the high potential small car market without any fresh investment on their part. And for Mahindra, it marks an entry into the small car market, something the company has so far avoided as it focused only on the utility vehicle and SUV category. 

Importantly, the Sandero will also help the companies utilise the excess capacity at Nashik which was being wasted due to poor demand for Logan. At the launch of Logan sedan in April 2007, the companies had earmarked a production capacity of 50000 units annually for the model. But its volumes in 10 months (April 2008-Januray 2009) stood at just 11,453 units in the domestic market, 43% down from 20,072 units in the same period of the previous fiscal. 

The Sandero makes the task easier for the companies as it shares a number of parts with the Logan, making the sourcing of components cost-effective. The car will be distributed from Mahindra’s existing network that also sells the Logan. Currently, 140 dealerships sell the Logan and the number is likely to be strengthened by 40 more points by this year-end. 

Mahindra and Renault had decided to join forces in February 2005, initially to produce and commercialise the Logan in India. They formed a 51:49 partnership and lined up an investment of about Rs 700 crore for the Nashik production facility. 

Renault has said it will re-start its independent product plans from Chennai when it gets better visibility about the overall financial situation.

Overall I should say the efforts put in by the committee in getting so many businesses to invest in such times is truly commendable but I strongly believe there has to be differentiation between a trade fair and consumer fair. If you want serious businesses to invest and reap gains then there should be proper industrial / trade fairs with time for trade visitors with proper credentials to be allowed only in to the show.

The parking was very well organized and catered to which was impressive but, beyond that the walk-in was like any weekend in any large shopping mall. I could only notice a handful of trade visitors. Rest attached few pictures which will speak for itself.

Starlite acquisition 

The company had last year acquired Nashik-based Starlite Industries which produces 10 million CFL a year. “We want to take our CFL production to 40 million by 2010. The new facility will give a boost to our growth roadmap,” Mr R. Ramakrishnan, Executive Director, Bajaj Electricals Ltd, toldBusiness Line.

Bajaj Electricals, which had posted a turnover of Rs 1,404 crore in 2007-08, said it is eyeing a turnover of Rs 1,700 crore by the end of this fiscal.

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More than 75,000 tyres produced at the unit are still lying in the factory, Mr Ahmed said. Of about 1,800 permanent and 400 temporary workers from CEAT, five managers had been discharged of their duties so far, he informed.

He asked workers to exercise restraint when it comes to expenses during the period. The two other major industrial units in Nashik located at Satpur and Ambad, have also been affected by the global meltdown and have resorted to lay-offs.

Earlier on November 18, the management had proposed temporary production cuts to four days a week to control and rationalize the production at both these plants

Most of these plants would be shut down for around three to six days depending on the market demand of the products manufactured in the respective plants, it added.

The company said the ongoing economic slow down in the automotive industry was mainly on account of inadequate funding and high interest cost.

“Taking into account the slowdown in demand for the company’s products, it has been decided to align the company’s production plan with the expected demand for the month of December, 2008,” M&M said. PTI

The decision to shut down these plants is made in order to adjust production to meet the demand for products and to avoid unnecessary inventory buildup, the company said in a press release to the Bombay Stock Exchange.

This is the second time in less than 10 days that Bosch is closing down part of its manufacturing facilities. Earlier, on November 28 and 29, the company had shut down its Nashik plant and the manufacturing activity of starters and generators at its Naganathapura plant near Bangalore between November 26 and November 29, 2008.