Financial Daily from THE HINDU group of publications
Friday, Nov 18, 2005
Financial Daily from THE HINDU group of publications Friday, Nov 18, 2005 |
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Corporate
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Outlook Rane group takes CMIE help to forecast market trends Our Bureau
Chennai , Nov. 17 THE Chennai-based Rane group is taking the help of the Centre for Monitoring Indian Economy (CMIE) to forecast sales trends, the group's Vice-Chairman, Mr L. Ganesh, told journalists here on Thursday. He said that the Centre's help was needed because of the increasing complexity of forecasting. At a press conference here, Mr Ganesh said that the executives of the group usually met once in two months to discuss (among other issues) sales trends. He said the group was able to predict the softening of demand (of components) from passenger cars and medium and heavy duty commercial vehicles. However, "we are often wrong also." The press conference was called to announce the award of the Deming Prize to two of the group's units, Rane Engine Valves and the switch gear division of Rane TRW Steering Systems. Mr Ganesh said that the slowdown of passenger cars and medium and heavy duty commercial vehicles was somewhat offset by the pick-up in light commercial vehicles, which in turn, was chiefly due to the success of Tata Ace. (The 0.75-tonne vehicle is understood to be selling 10,000 units a month.) Answering a question, Mr Ganesh said that there had been no flooding of the Indian market for auto components from Thailand, as was feared last year, when the Free Trade Agreement between India and Thailand went live. He, however, said that he was "scared" of China, as the Chinese seemed to be dumping auto components into India. He said that some aluminium engine valves of Chinese make were seen in the Indian markets. Asked if he thought whether the Chinese were "dumping" the products, as opposed to exporting, Mr Ganesh said, "we believe so." He said that the Automotive Components Manufacturers' Association (ACMA) had been requested by its members to take up the matter with the Government of India. He said he believed that the Chinese products were being dumped because, upon a study, the Rane group found that there was no cost advantage to a plant in China over one in India. The group had made the evaluation with a view to exploring the option of setting up a manufacturing unit there. "Today, if you set up a unit in China and if you play by the rules, there is no great cost advantage," Mr Ganesh said. On another issue, Mr Ganesh said that Rane Engine Valves was examining the possibility of setting up a unit in the Special Economic Zone of Visakhapatnam. He said that the Rane group's open offer for acquiring 20 per cent stake in Kar Mobiles Ltd from the public would open next month. The group has a 30 per cent stake in the company and is looking to raise it to further. Kar Mobiles also manufactures valves for automotive engines.
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