Automotive component makers are taking positions in India’s auto industry, which is growing at about 10% a year and would grow by 10 to 12% a year for the next two years. During the month two deals were announced, Germany’s Continental acquired the tyre business of Modi Rubber and US based Dana Corporation said it had agreed to buy the drive-head unit of Axles India, a joint venture between Dana and two Indian companies – Sundaram Finance and Wheels India. The deal is expected to close in the second half of the year.
Overseas interest in India’s auto market could be driven by strong consumer fundamentals as well as its existing low car market penetration of 12 cars per 1,000 people as compared to China at 21 and US at 500. The future buyers could show interest in India’s low-cost manufacturing base from where they could export their products to South East Asian region.
On the other hand the rubber industry has proposed to the government to provide a one time subsidy of Rs 1 lakh per hectare to small farmers for a period of three years for planting rubber trees, in the 12th Five-Year Plan (2012-17) to boost natural rubber output. At present the government is providing a subsidy of Rs 19,500 per hectare on rubber cultivation in the traditional areas and Rs 30,000 per hectare in non-traditional areas. The rubber producers said that hefty subsidy would help increase rubber production in newer areas like the northeastern states.
The rubber industry has also suggested the government to expand the country's rubber output by following the Chinese model of acquiring land in other countries for plantation, to meet its growing natural rubber demand.
Read lot more in Rubber4U – 1st May 2011 issue
No comments:
Post a Comment