Daimler, Volvo Export Trucks, Buses from India

Both Daimler and Volvo are making India their export hub for large trucks and luxury buses such as the Mercedes-Benz, Mitsubishi Fuso, Freightliner and UD Trucks.

Daimler India Commercial Vehicles (DICV), the Indian subsidiary, has already begun exporting its Mercedes-Benz trucks and buses, made at its Chennai facility, to Southeast Asian markets.
It also exports the India-made Mitsubishi Fuso range of trucks to 28 countries. In mid-2017, it will begin sales of the Freightliner trucks to Mexico. “DICV has been awarded significant responsibilities within Daimlers’ global truck and bus businesses,” Erich Nesselhauf, managing director of DICV, told the Economic Times.

In 2016, DICV’s truck exports more than doubled to 4,300 units, taking the number of cumulative shipments from India to 7,500 units. Daimler exports to the Middle East, Africa, Latin America, and Southeast Asia. This year, DICV will add 10 new truck-export markets.

Volvo AB’s UD Trucks, which are manufactured at its Indian joint-venture plant in the state of Madhya Pradesh, will be marketed to Indonesia. India already manufactures the Euro VI engines for Volvo’s home base in Europe. Volvo Buses will use its base in Bangalore to export vehicles to western Europe.

Vinod Aggarwal, managing director of Volvo’s joint venture in India VE Commercial Vehicles (VECV), said, “The export of medium-duty engines to Europe ensures better utilization of our plant capacity. VECV is focusing on building its exports, which increased 20% in FY17. We expect it to sustain momentum in the coming year.”

A Truck

May 4, 2017   No Comments

Global Finance Firms to Add Office Space in India

Even as they downsize their retail operations worldwide, Barclays Plc, Credit Suisse Group AG, Standard Chartered Plc and Citigroup Inc., are among global financial firms looking to add office space in India.

Barclay Technologies Center India Ltd, an offshore unit of the London-based financial services firm, is planning to add 100,000 sq. ft in Pune, 90 miles east of Mumbai, where it currently operates. At Panchshil Realty Ltd’s IT parks in Pune, approximately 35% of the total space is occupied by the captive technology businesses of Deutsche Bank AG, MasterCard Inc. and Credit Suisse, while Swiss bank UBS leased around 400,000 sq. ft at K Raheja Corp.’s IT park at Navi Mumbai.

Inside an Office

“Captive banking, financial services and insurance clients, which were outsourcing earlier, prefer to do the work themselves, given the cost optimization. Instead of paying third-party operators, it’s better to have your own offshore unit,” said Gautam Saraf, managing director (Mumbai region), of global property consultant Cushman and Wakefield.

Mike Holland, chief executive officer of Embassy Office Parks, Bangalore said, “The BFSI industry is a strong demand driver, especially in Pune and Bangalore. We are also doing transactions in Chennai and Hyderabad in that segment.”

March 22, 2017   No Comments

India’s Auto Part Maker to Build Factory in S. Carolina

Chennai India-based Sundaram Clayton Limited, a leading supplier of aluminum die castings to the automotive and non-automotive sectors, announced that it will establish its first American unit in Dorchester County, South Carolina, at an estimated cost of $50 million.

The company has acquired 50 acres of land for its new facility, where it will manufacture aluminum high-pressure die-cast products and permanent mold gravity cast parts for its customers. The Indian Express reports that construction work is expected to begin by April this year and the first production line is projected to be operational by the end of next year. The factory will create 130 new jobs over the next five years.

A casting used in cars

“The United States has always been an important market for us,” Lakshmi Venu, Sundaram-Clayton’s managing director, said in a statement. Venu said the company decided to invest in South Carolina to better support its U.S. customer base.

February 10, 2017   No Comments

India’s Institute of Technology Develops Cardio Implant

The Indian Institute of Technology Madras located in Chennai, India has developed Asia’s first ‘life-saving’ implant called SynkroScaff — A tissue engineered bovine pericardial patch — for critical cardiovascular patients. A Chennai-based firm, SynkroMax Biotech, has been appointed as the commercial partner. C.V. Seshadri, managing director of Synkromax Biotech said, “This sack is harvested and processed with biomaterial for ten days followed by quality control parameters to ensure it is microbial free.”

Tissue Engineering

The  pericardial patch (sack of buffalo’s heart) has inherent properties of regeneration and integration in the body, and its medical application is based on innovator Guhathakurta’s doctoral research in the institute in 2004, under the guidance of Venkatesh Balasubramanian, professor, Department of Engineering Design. Guhathakurta says, “Its applications are immense in cardiovascular and other surgical practices.  So far, 800 patches have been manufactured and over 12 surgeons are using them across India.  The feedback from doctors and patients has been encouraging, with a 100 percent success rate,” she said, adding that the product is manufactured in a facility complying with drug applications and current good manufacturing practice (cGMP) guidelines, reports the New Indian Express.

Guhathakurta said, “After 30 years of being a practicing clinician and surgeon, I completely transitioned into a researcher after starting my PhD.” She is currently pursuing work on developing other tissue- engineered products and regenerative medicine using stem- cell technology.

 

December 29, 2016   No Comments

Foreign Lenders Support Non Banking Systems in India

The Wall Street Journal reports that global players such as KKR & Co. L.P., headquartered in New York City, and Manhattan-based Goldman Sachs are actively involved in alternative lending in India. Though the amount of the loans being offered are far smaller than those disbursed by big banks, the sector is seeing a surge in growth.

“Banks don’t like to do too-small transactions,” said D. Arul Selvan, CFO of non bank lender Cholamandalam Investment and Finance Company Limited, a Chennai-based company which reportedly has $5 billion in assets, and whose profits have increased 42 percent in the quarter that ended September 30.

Dollar Bills

“It’s a pretty attractive [business] from a risk-reward perspective,” B.V. Krishnan, an executive at KKR in India, told the Wall Street Journal. Krishnan explained that the expected yields from the loans are in the high teens and that KKR has lent roughly $4 billion to Indian companies through two non-bank lending firms it runs, reports Pymnts.com.

 

 

December 29, 2016   No Comments