YES Bank net profit jumps 38% in June quarter

Higher interest income and robust loan growth helped private sector lender YES Bank report a 38 per cent jump in net profit at Rs 401 crore in the April to June quarter.

The mid-sized bank had posted a profit of Rs 290 crore in the year-ago quarter.

Net interest income (difference between interest earned and expended) increased 40 per cent at Rs 659 crore (from Rs 472 crore in Q1FY13) due to higher margins and advances growth. Other income rose 53 per cent to Rs 442 crore (Rs 288 crore in Q1FY13).

During the quarter, net interest margin increased to 3 per cent as against 2.8 per cent in the corresponding quarter last fiscal.

As on June 30, 2013, total advances grew 24 per cent year-on-year to Rs 47,898 crore (from Rs 38,534 crore as on June 30, 2012). Deposits growth was higher by 30 per cent at Rs 65,245 crore (from Rs 50,208 crore).

Gross non-performing assets (NPAs) or bad loans declined marginally to 0.22 per cent from 0.28 per cent as on Q1FY13. Net NPAs also reduced to 0.03 per cent (from 0.06 per cent).

Capital adequacy ratio, based under the Basel III norms, declined to 15.4 per cent from 17 per cent in the same quarter last year.

Despite strong first quarter results, the RBI measures announced on Tuesday impacted the bank’s scrip which fell 11.76 per cent and was trading at Rs 387.15 per share on the Bombay Stock Exchange.

Sensex plunges 219 points; Bank, capital goods stocks major laggards

The Sensex and the Nifty were trading down by over 1.07 per cent at the pre-close ession on Wednesday owing to heavy selling in banking, capital goods, consumer durables and metal stocks.

Domestic sentiment was dampened after the Reserve Bank of India had yesterday announced additional liquidity tightening measures to check the rupee slide.

At 3.03 p.m., the 30-share BSE index Sensex was down 219.50 points (1.08 per cent) at 20,082.63 and the 50-share NSE index Nifty was down 90.1 points (1.48 per cent) at 5,987.70.

Among BSE sectoral indices, banking and capital goods indices succumbed to heavy selling pressure and were down 4.61 per cent and 2.9 per cent, respectively, followed by consumer durables 2.32 per cent and metal 2.06 per cent.

On the other hand, IT and TECk found investors' support and were up 1.12 per cent and 1.08 per cent, respectively.

Among 30-share Sensex, Bharti Airtel, TCS, Wipro, Cipla and Sun Pharma were the top five gainers, while the top five losers were Jindal Steel, L&T, HDFC Bank, ICICI Bank and HDFC.

European stocks rose, after the benchmark index fell from a seven-week high, as companies from Volvo AB to EasyJet Plc released financial results.

Stoxx 50 was up 19.93 points or 0.73 per cent at 2,742.83, FTSE 100 rose 41.51 points or 0.63 per cent to 6,638.95 and DAX climbed 41.35 points or 0.5 per cent to 8,355.58.

Asian shares were down, with the regional benchmark index retreating from a two-month high, after a data showed China’s factory output dropped in July.

Initial reading of 47.4 for Purchase Managers Index by HSBC showed that the manufacturing output in China fell to an 11-month low.

In the Asian trade, Nikkei fell 109.32 points or 0.74 per cent to 14,669.20, Hang Seng shed 62 points or 0.28 per cent to 21,853.40 and S&P/ASX 200 was up 17.89 points or 0.36 per cent at 5,035.

Also, investors remained cautious as they have to wait until September for the US Federal Bank to reveal its intentions on the $85-billion-a-month stimulus package.

Supreme Court raps Sahara for non-compliance of refund notice

Both the firms already paid Rs 5,120cr to Sebi and is yet to pay Rs 20,000cr more as to comply with the original notice

The Supreme Court (SC) has issued a fresh contempt notice against Sahara India Real Estate and Sahara Housing Invest for not complying with its order directing the deposit of over Rs 24,029 crore raised by issue of optionally fully convertible debentures.
The bench comprising judges K S Radhakrishnan and J S Khehar also asked the companies to give a definite date by which they can pay the money before adjourning the matter to July 30.

Both the firms already paid Rs 5,120 cr to Sebi and is yet to pay Rs 20,000 cr more as to comply with the original notice

Fortis Healthcare to mop up $43.5 million through various routes

Fortis Healthcare is planning to mop up around $43.5 million through issue of various instruments, including Foreign Currency Convertible Bonds (FCCBs) in Singapore. Recently, the issue committee duly constituted by the board of directors of the company has approved the issue of FCCBs up to $30 million, to be listed on Singapore Exchange Securities Trading, and has decided to launch the issue.

The conversion price in respect of the issue of the FCCBs, is Rs 99.09 per equity share and the relevant date for this purpose is July 23, 2013. Besides, the company’s board has approved to raise $13.5 million by issue of 88.55 lakh shares to Standard Chartered Pvt Equity (Mauritius) III Ltd on a preferential basis.

Fortis Healthcare is an integrated healthcare delivery service provider in Asia. The healthcare verticals of the company span primary care, diagnostics, day care specialty and hospitals, with a healthcare network spanning 9 countries.

Dabur India Q1 net up 25 percent to Rs 186 crore

Fast moving consumer goods company Dabur India  's first quarter consolidated net profit rose 25 percent year-on-year to Rs 186 crore.

The company's consolidated total income in April-June was up close to 13 percent from a year ago to Rs 1,657 crore. Volumes grew 9 percent versus 12 percent a year ago.

Analysts on average had expected Dabur to report a consolidated net profit of Rs 182 crore on revenue of Rs 1,648 crore, according to a CNBC-TV18 poll.

Its domestic FMCG business grew 13 percent, while international business grew 17 percent.

The company's operating profit margin in the quarter was at 14.5 percent, lower than analysts expectation of 15.3 percent.

Among its key business segments, Consumer Care business revenue was at Rs 1,343 crore, up 14 percent in April-June.

Foods business revenue rose 18 percent to Rs 250 crore and Retail business revenue gained 27 percent to Rs 17 crore, the maker of Real Fruit Juices and Vatika Shampoo said on Wednesday. Dabur operates retail stores under the New U Brand.

Bank stocks under pressure; tank up to 9% on RBI measures

Bank stocks today took severe beatingin the stock market, falling as much as 9% in morning trade, after the RBI announced additional liquidity tightening measures to check rupee slide.

Yes Bank tanked 8.6%, while Bank of India slipped 7.61%, Canara Bank (6.39%), Axis Bank (6.13%), Kotak Mahindra Bank (5.56%). Among blue-chips, PNB tumbled 5.58%, while ICICI Bank was down 4.63%, SBI (3.81%) and HDFC Bank (3.26%).

Following the weakness in these stocks, the BSE banking index plunged 4.44% to 12,260.52 and was the top loser among the 13 sectoral indices.

With the rupee still continuing to be weak, the Reserve Bank yesterday announced additional liquidity tightening measures to contain excessive speculation and volatility in the foreign exchange market.

RBI has reduced the liquidity adjustment facility (LAF) for each bank from 1% of the total deposits to 0.5%, thus limiting the access to borrowed funds from the central bank. The limit will come into force with immediate effect and continue till further notice, the RBI has said. In another measure to suck out liquidity from the system, RBI has asked banks to maintain higher average CRR (cash reserve ratio) of 99% of the requirement on daily basis as against earlier 70%.

CRR is portion of deposits that banks are required to keep with RBI.

Cairn India to invest Rs 13000 crore to drill over 450 wells in Rajasthan

Cairn India is planning to invest Rs 13,000 crore to drill over 450 wells in Rajasthan and up to Rs 16,000 crore till FY16 for oil exploration. Further, the company is evaluating ways to develop twin discoveries in Sri Lanka. Exploration will continue to be central to company’s growth plans.

Cairn India is one of the largest independent oil and gas exploration and production companies in India. The company and its JV partners account for more than 20 percent of India’s domestic crude oil production.

Pennar Industries’ arm secures orders worth Rs 50 crore

Pennar Industries’ subsidiary- Pennar Engineered Building Systems (PEBS Pennar) has secured orders from Shapoorji Pallonji & Co, Gland Pharma, Indian Logistics and Volvo India, and other projects worth Rs. 50 Crore 

The company has received first order from Shapoorji Pallonji &Co for a site building at Tumkur, near Bangalore, Karnataka. The total area of the building is 3,900 sqm. The company has received second order from Gland Pharma for a warehouse building near Hyderabad. The total area of the building is 4,900 sqm. The company has received third order from Indian Logistics for a warehouse building at Bhiwandi, Maharashtra. The total area of the building is 16, 00,000 sft. The company has received fourth order from Volvo India, for five projects. The new orders include a renovation building, DG room with pipe rack and supply of additional materials for the extension of two existing buildings. The project site is near Hoskote, Kolar Road, and Karnataka.

Pennar Industries is engaged in the manufacturing of Cold Rolled Steel Strips (CRSS) and value-added products under Cold Rolled Formed Sections (CRFS) like precision tubes, engineered components, road safety systems, parts of railway coaches and Electro Static Precipitators (ESP).

Tech Mahindra soars on inking pact with UBS Fund Services

Tech Mahindra is currently trading at Rs. 1197.40, up by 18.40 points or 1.56% from its previous closing of Rs. 1179.00 on the BSE.

The scrip opened at Rs. 1172.00 and has touched a high and low of Rs. 1208.00 and Rs. 1171.00 respectively. So far 152436 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1208.00 on 24-Jul-2013 and a 52 week low of Rs. 709.30 on 24-Jul-2012.

Last one week high and low of the scrip stood at Rs. 1208.00 and Rs. 1081.60 respectively. The current market cap of the company is Rs. 27870.70 crore.

The promoters holding in the company stood at 47.17% while Institutions and Non-Institutions held 42.62% and 10.22% respectively.

Tech Mahindra has entered into agreement with UBS Fund Services, Luxemburg as the first client for its own platform. Tech Mahindra Managed Data Services (MDS), designed to support asset managers, wealth managers, investment bank, custodians and administrators. The contract is for an initial five year term.

Under the agreement Tech Mahindra will provide UBS FSL with fully managed services across four major areas of data management, namely securities reference data, pricing, corporate actions and tax data. Tech Mahindra MDS supports the complete data lifecycle of sourcing, cleansing, enrichment and distribution to multiple locations. It also provides golden copy creation to underpin a centralized global operating model. The platform supports multiple pricing points across all time zones, markets and asset types.

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra.

Tata Consultancy Services surges on acquiring French IT Services firm ‘ALTI’

Tata Consultancy Services (TCS) is currently trading at Rs. 1776.00, up by 26.20 points or 1.50% from its previous closing of Rs. 1749.80 on the BSE.

The scrip opened at Rs. 1745.00 and has touched a high and low of Rs. 1784.80 and Rs. 1740.00 respectively. So far 53397 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1780.00 on 23-Jul-2013 and a 52 week low of Rs. 1194.35 on 26-Jul-2012.

Last one week high and low of the scrip stood at Rs. 1780.00 and Rs. 1644.90 respectively. The current market cap of the company is Rs. 347651.38 crore.

The promoters holding in the company stood at 73.96% while Institutions and Non-Institutions held 21.57% and 4.47% respectively.

Tata Consultancy Services (TCS), the leading IT services, consulting and business solutions organisation, has completed the acquisition of ALTI SA during an official ceremony under the patronage of Arnaud Montebourg, Minister for Economic Regeneration for the French Republic. The CEO and Managing Director for TCS, N Chandrasekaran, and ALTI’s founders signed the final agreement to commence the integration of ALTI into TCS’ operations in France. This acquisition will boost the company’s strategic growth plans in Europe with the integration of 1,200 employees across France, Belgium and Switzerland. 

Alti SA, a privately-held company with revenues of €126 million in 2012, is regarded as one of the top 5 system integrators of SAP solutions in France. It includes several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers. This strategic investment by TCS will help leverage the strong engineering talent in the country for the benefit of its customers in France and other markets globally. 

GVK to go slow on oil & gas business

GVK Oil & Gas LTD, GVK group's oil and natural gas exploration wing, will go slow on investing further into the development of seven deep-water blocks it has on the west coast due to inordinate delay in getting government clearances.

According to the latest annual report of GVK, the group which is primarily concentrating on the development of $10 billion coal project in Australia for its future energy security, is disappointed with the Ministry of Defence restriction on proceeding further with regard to some of the blocks.

The GVK-BHP Billiton consortium emerged as winners of seven deep water exploration blocks off the West coast of India in the NELP VII. GVK holds 74% stake, while BHP besides holding 26% stake, acts as operator of all the blocks.

"While 2D over and under sysmic data acquisition and processing are completed, the further exploration has hit a road block as some of these blocks are falling within the Jurisdiction of Ministry of Defence.

"Directorate of Hydrocarbons informed the consortium that the MOD is in the process of granting additional clearances for some of the blocks for proceeding further for exploration.

"As it is time-consuming, the group is of the firm view to wait and watch before infusing any further funds into this project," the report said.

The 2D Over/under seismic data acquisition and processing in NELP VII blocks was completed by WesternGeco and Edcon, it added.

Of the seven blocks (MB-DWN-2005/2, MB-DWN-2005/3, MB-DWN-2005/4, MB-DWN-2005/5, MB-DWN-2005/7, MB-DWN-2005/9 and KK-DWN-2005/1) one is located in the Kerala-Konkan region and the rest of the six deepwater blocks off Mumbai.

The consortium may also look to rope in a partner once clear picture emerges from the MoD, the report indicated.

As per the latest balance sheet of GVK Oil and Gas, the company has employed Rs 173 crore towards capital work in progress.

A market analyst, who is tracking GVK, expressed inability to comment on the issue saying that the management has not provided any information on oil and gas business.

The government had in nine rounds of New Exploration and Licensing Policy (NELP) awarded 256 blocks to domestic and overseas explorers.

Of these, 52 blocks are stuck for want of clearances. Fifty-two blocks awarded under various rounds of NELP bidding, are pending for clearance by different organisations, such as Ministry of Defence, Ministry of Environment and Forest, international boundary disputes and state governments, the then Minister of State for Petroleum and Natural Gas R P N Singh told Rajya Sabha last year. 

Povery rate down to 21.9 pc, says Planning Commission

Virtually sticking to its earlier controversial way of calculating poverty figures, Planning Commission on Tuesday said the number of people living below the poverty line has shrunk in both urban and rural areas.

The number of people living below the poverty line has shrunk to 21.9 per cent in 2011-12 from 37.2 per cent in 2004-05 on account of increase in per capita consumption.

According to the Commission, in 2011-12 for rural areas, the national poverty line by using the Tendulkar methodology is estimated at Rs 816 per capita per month in villages and Rs 1,000 per capita per month in cities.

This would mean that the persons whose consumption of goods and services exceed Rs 33.33 in cities and Rs 27.20 per capita per day in villages are not poor.

Earlier, the Planning Commission had triggered a major controvery by saying anyone spending more than Rs 32 per day in urban areas was not poor. This criteria for fixing poverty line was criticised across the political spectrum as being unrealistic and unmindful of present day realities.

Planning Commission on Tuesday gave out the poverty ratio using the same criteria saying the number poor in the country have shrunk in the past 7 years.

The Commission said that for a family of five, the all India poverty line in terms of consumption expenditure would amount of Rs 4,080 per month in rural areas and Rs 5,000 per month in urban areas. The poverty line, however, will vary from state to state.

State-wise, the Commission said the poverty ratio was highest in Chhattisgarh at 39.93 per cent followed by Jharkhand (36.96%), Manipur (36.89%), Arunachal Pradesh (34.67%) and Bihar (33.47%).

Among the union territories, the Dadra and Nagar Haveli was the highest, with 39.31 per cent people living below poverty line followed by Chandigarh at 21.81 per cent.

Goa has the least percentage of people living below poverty line at 5.09 per cent followed by Kerala (7.05%), Himachal Pradesh (8.06%), Sikkim (8.19%), Punjab (8.26%) and Andhra Pradesh (9.20%).

OBC pays Rs 155.68 crore as dividend to GoI for 2012-13

Oriental Bank of Commerce (OBC) has paid Rs 155.68 crore to the Government of India (GoI) towards dividend for financial year 2012-13. The public sector lender had declared a dividend of 92% i.e. Rs 9.2 per share of Rs 10 each. The dividend RTGS amount for Rs 155.68 crore was presented to the Union Finance Minister by the bank at North Block on July 23, 2013.

Oriental Bank of Commerce is a government of India undertaking whose business activities includes monetary intermediation of commercial banks, saving banks and discount houses. The bank’s net profit rose 16.24% to Rs 307.94 crore on 9.45% growth in total income to Rs 4996.01 crore in Q4 March 2013 over Q4 March 2012. Its  capital adequacy ratio (CAR) as per Basel II norms declined to 12.04% as on March 31, 2013 from 12.25% as on December 31, 2012 and 12.69% as on March 31, 2012.

Banking shares dips post RBI measures

Banking shares are under pressure on the bourses in early morning trades falling up to 8% after the Reserve Bank of India (RBI) has imposed some more measures to tighten liquidity to stabilize Indian rupee.

IndusInd Bank and Yes Bank were down by 8% each at Rs 426 and Rs 404 respectively, while Federal Bank and Axis Bank were slipped 5% each at Rs 362 and Rs 1,146 respectively on the Bombay Stock Exchange (BSE).

State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Oriental Bank of Commerce, Bank of India, Dena Bank, Canara Bank, ING Vysya Bank and Corporation Bank were down 2-5%.

The BSE banking index Bankex, the largest loser among sectoral indices, was down nearly 4% or 451 points as compared to 0.39% or 80 points fall in benchmark Sensex at 0955 hours.

The RBI has capped the total quantum of funds available under liquidity adjustment facility (LAF) to 0.5% (lowered from 1%) of individual bank’s net deposits and time liabilities (NDTL), which would be effective from July 24, 2013. The earlier imposed cap on overall allocation of funds at Rs 75,000 crore under LAF stands withdrawn.

It has also increased the requirement of minimum daily cash reserve ratio (CRR) maintenance to 99% from 70%, which would be effective from first day of fortnight beginning July 27, 2013.

Zensar Technologies surges on inking multi-crore deals worth Rs 100 crore in FY14

Zensar Technologies is currently trading at Rs 245.00, up by 3.50 points or 1.45% from its previous closing of Rs 241.50 on the BSE.

The scrip opened at Rs 244.00 and has touched a high and low of Rs 249.40 and Rs 244.00 respectively. So far 1321 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs 302.45 on 03-Oct-2012 and a 52 week low of Rs 219.00 on 27-Feb-2013.

Last one week high and low of the scrip stood at Rs 269.05 and Rs 240.60 respectively. The current market cap of the company is Rs 1053.01 crore.

The promoters holding in the company stood at 48.35% while Institutions and Non-Institutions held 12.94% and 38.71% respectively.

Zensar Technologies has bagged significant orders at the start of the new financial year, in both Infrastructure Management Service and Application Management areas. This wins in the last few weeks are valued at over Rs 100 crore and the company’s order book continues to be healthy in the Infrastructure and Applications businesses. The order pipeline across all markets is in excess of 300 million US dollars.

The significant wins in the infrastructure management space include multi-million dollar deals with a top direct selling specialty company doing business primarily through the mail order channel of distribution with a million active customers; third party maintenance for a telecom giant based in the US, making more than 300 million transactions possible every day across multiple platforms and geographies; server consolidation and optimization support for a leading healthcare plan provider in the US; third party maintenance for a leading technology company in the global networking space; managed services including infrastructure network and security services for a world leader in digital security and multivendor support across multiple locations in the US for the world's leading dedicated toy and children’s products retailer.

Besides, the Applications business has opened new business areas in the nonlinear growth areas of the company like mobile application development for a significant South Korean multinational conglomerate company enhancing its digital footprint; inroads into the Mining sector with a significant package application deal in South Africa.

The company has also signed multiyear application maintenance and support deal with a large Insurance organization; application support and enhancement deal for a Fortune 1000 leading supplier of electronics and technologies in the automotive sector and a large package application deal with one of the largest manufacturers of processed foods in the Middle East.

Top economy news of the day

RBI has tightened rules on the cash reserve ratio.

RBI said banks would be permitted to borrow under the liquidity adjustment facility only up to 0.5% (lowered from 1%) of their net deposits and time liabilities at the benchmark interest rate of 7.25%. (BS)

RBI has tightened rules on the cash reserve ratio. Now, banks will have to hold cash equivalent of at least 99% of CRR on a daily basis, compared with 70% earlier. (BS)

The National Association of Software and Services Companies (Nasscom) has maintained its growth forecast for the industry, at 12-14% for fiscal 2014. (BL)

Ticket pricing by airlines is set to come under scrutiny, with the civil aviation ministry roping in anti- trust watchdog Competition Commission of India to keep in check indiscriminate airfare increases in domestic aviation. (BS)

Markets open lower amid weak Asian cues

Markets have started the trading session on lower note tracking weak Asian cues as investors booked profit after sharp gains recently.

Markets have opened lower on Wednesday, amid weak Asian cues, as investors booked profit at higher levels after sharp gains recently. By 9:30, the Sensex was lower by 67 points at 20,235 mark and the Nifty declined by 35 points at 6,043 levels.

The market may remain volatile during the week as traders will roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series tomorrow.

On the global front, most Asian stock markets edged up in a tentative morning session on Wednesday, while the dollar treaded water, as investors awaited the latest reading on China's manufacturing activity to gauge the health of the world's second-biggest economy.  

The HSBC China flash PMI is scheduled to be released at 0145 GMT. Signs that Asia's powerhouse economy is slowing would weigh on equities markets and commodities prices, and might give the US dollar some support.   In recent sessions, reports have suggested that China was moving to support its cooling economy.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3%.   Japan's Nikkei share average edged down 0.4% after a two-day rally.

Back home, BSE Bankex has plunged by almost 3% followed by counters like Realty, Auto, Capital Goods, PSU, Consumer Durables, Metal and Metal, all declining between 0.1-1%.

The main losers on the Sensex at this hour ICICI Bank, HDFC Bank, SBI, HDFC, Sterlite, Tata Motors, Hero Moto and Tata Steel, all dropping between 1-3%.

Banking and financial shares have declined significantly. Exactly a week after tightening liquidity to stabilise the volatility of the rupee, the Reserve Bank of India (RBI) on Tuesday imposed new restrictions on commercial banks’ access to cash.

On the gaining side, ONGC, Dr Reddy’s, Wipro, ITC and TCS have gained by 1% each.

The market breadth in BSE remains weak with 518 shares declining and 336 shares declining.

Zensar signs deals in first four months of FY14

Zensar Technologies announced number of significant wins at the start of the new financial year, in both Infrastructure Management Service and Application Management areas.
Significant wins in the infrastructure management space include multi-million dollar deals with:

•a top direct selling specialty company doing business primarily through the mail order channel of distribution with a million active customers
•third party maintenance for a telecom giant based in the US, making more than 300 million transactions possible every day across multiple platforms and geographies
•server consolidation and optimization support for a leading healthcare plan provider in the US
•third party maintenance for a leading technology company in the global networking space.
•managed services including infrastructure network and security services for a world leader in digital security
•multivendor support across multiple locations in the US for the world’s leading dedicated toy and children’s products retailer
The Applications business has opened new business areas in the nonlinear growth areas of the Company:
•mobile application development for a significant South Korean multinational conglomerate company enhancing its digital footprint
•inroads into the Mining sector with a significant package application deal in South Africa
•The Company has also signed a multiyear application maintenance and support deal with a large Insurance organisation
•Application support and enhancement deal for a Fortune 1000 leading supplier of electronics and technologies in the automotive sector
•a large package application deal with one of the largest manufacturers of processed foods in the Middle East
The wins in the last few weeks are valued at over 100 Cr INR and the Company’s order book continues to be healthy in the Infrastructure and Applications businesses. The order pipeline across all markets is in excess of 300 million US dollars.
Vivek Gupta, Chief Executive of Zensar’s Infrastructure Business Unit (IBU) said “After our transition from Akibia to a fully integrated multi-shore business, we have seen tremendous uptick in customer demand for all the new services. We are particularly pleased with our Private Cloud transition services and expect that this will lead the way to our double digit growth plans for this year.”

Maruti Suzuki threatens to shut down Manesar plant

The company is facing prospect of paying additional compensation worth over Rs 500 crore for 600 acres of land, according to reports.

Reports said that Maruti Suzuki has threatened to shut its Manesar plant in Haryana.
The company is facing prospect of paying additional compensation worth over Rs 500 crore for 600 acres of land, according to reports.
Maruti makes models like the Swift hatchback and Dzire sedan at Manesar, for making diesel engines.
"If further enhancement is granted, the (Maruti) management may take a decision to discontinue the plant at Manesar," counsels P S Patwalia and Abhishek Manu Singhvi stated.
Manesar is one of crucial facilities for Maruti, as well as for the global operations of Japanese parent Suzuki.
While Maruti Suzuki refused to comment.
Maruti currently churns out 5 lakh cars annually from the Manesar set-up, which is set to eventually rise to 7.5 lakh.