Kottayam, Oct 1
Spot rubber ruled firm on Friday. The market improved following the gains in domestic futures catalysed by widespread rains and supply concerns. The trend was mixed. Sheet rubber moved up to Rs 170 from Rs 168.5 a kg on fresh buying and short covering. The grade was quoted at Rs 169 (168.5), according to Rubber Board as quoted in the official Web site.
Futures gain
RSS 4 increased at its October futures to Rs 173.7 (171.79), November to Rs 176.34 (173.76), December to Rs 178.45 (176.42) and January to Rs 180.98 (178.96) a kg on the National Multi Commodity Exchange. The volumes totalled 3,912 lots and open interest 3,905 lots. The turnover was Rs 68.51 crore. The October series for RSS 3 improved to ¥302 (Rs 161.54) from ¥297.5 a kg during the day session but remained inactive during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) closed at Rs 161.65 (161.21) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 170 (168.5); RSS-5: 165 (165); ungraded: 162 (162); ISNR 20: 165 (163) and latex 60 per cent: 115.5 (115.5).
Rubber output up over 7% in April-September
The country's ubber production increased 7.6 per cent between April and September this fiscal.
The attractive price for natural rubber and increased extent of rain–guarding are the primary reasons for the spurt in production, sources in the Rubber Board said.
Weather conditions
The favourable weather conditions, when unseasonal rains have persisted over rubber-growing regions interspersed with sunshine, have also led to increased tapping and production. The growth in production was also accompanied by a spurt in consumption, which increased 2 per cent during the first six months of the current fiscal.
Meanwhile, consumption by the automotive sector has grown by 4 per cent.
Import duties
Increased domestic production coupled with firm trends in the global markets had resulted in a fall in the import of natural rubber. Natural rubber imports fell by 14 per cent between April-September.
However, the slash in import duties for natural rubber seems to have had a salutary effect on rubber imports during September, and imports increased 54 per cent, over the corresponding month last year.
The slash in import duties has also bridled the spiral in rubber prices, that fell sharply last month and are now moving more or less in tandem with global prices.
The increased availability and import of natural rubber pushed up the rubber exports.
Commitments for exports were deferred due to high domestic and international prices, but are now being executed in light of the increased availability and imports, sources in the trade said.
Rubber stocks
Rubber stocks in the country continue to remain comfortable, 28 per cent higher than last year's levels.
The market expects prices to remain stable in the coming months, on account of the high level of stocks, lower customs duties and increased domestic production.
Harrisons Malayalam bets on growth in plantation business
Kochi, Oct 1
Harrisons Malayalam expects a strong growth from its plantation business this year, backed by increasing yields and firm price trends. While the downtrend in tea prices witnessed in the last five months has been arrested and prices have begun to look up, the company also expects rubber prices to continue ruling firm in the coming months. The company is also expecting good returns from its pineapple, pepper, cardamom and cocoa business.
Addressing a press conference, Mr Pankaj Kapoor, Managing Director of the company, said that the management of Harrisons Malayalam has clearly laid down the road map for the future growth of the company – both both organically and inorganically. The company is also continuing its pursuit to rejuvenate and revitalise the operations by adopting replanting in both tea and rubber plantations as well as in infilling of tea fields.
Eyes foreign lands
HML is also looking at taking over the land on lease in foreign countries for pursuing plantation activities. It is exploring the possibilities of pursuing plantations activities in the African countries of Ethiopia and Ghana as well as in South East Asian countries of Laos and Vietnam. The foreign plans of the company are likely to become clearer six months later. Around 35 lakh tea plants were planted last year. This was carried out with the intention to improve the quality. Also, huge investments were made into factories to improve the quality of products and to make the factories more environment-friendly. These initiatives have already started giving results in price realisation and in the form of cost reduction.
The bought operations in tea leaves and rubber latex have been scaled up and enabled optimisation and utilisation of the factory capacity more efficiently. The moves have not only helped in increasing the top line but the bottom line of the company as well. The huge investments that the company has made in fruits, spices and other crops are mostly in the gestation period. Once the investments begin to yield returns, the company expects the turnover and the profits to spurt up.
But it pointed out that commodity prices are subject to price fluctuations and it did not anticipate that the prices will remain high all the time.
Consequently, the company is doing whatever is possible to improve the land productivity and quality of the products. It is also not sparing any effort in cost reduction initiatives.
HML plans to work along with the employees to improve their productivity and arrive at a market-linked wage structure for the industry.
Auto majors post record sales
Maruti Suzuki, Hyundai and Mahindra & Mahindra lead from the front
Maruti Suzuki sales up 29.65 % in September
8 % jump in Hero Honda two-wheeler sales
NEW DELHI: Auto makers continued with their impressive sales in September, led by Maruti Suzuki, Hyundai Motor India and Mahindra & Mahindra, which on Friday reported record monthly sales.
While the country's largest car-maker, Maruti Suzuki India, reported its highest-ever total monthly sales of 1.08 lakh units in September, Hyundai Motor India also said it had achieved its best ever domestic sales in a month at 31,751 units.
In terms of growth, Maruti Suzuki had 29.65 per cent increase vis-a-vis the year-ago period, while that of Hyundai Motor India the rise was 14.2 per cent.
The Maruti's previous highest was 1.05 lakh units in August and that of Hyundai Motors was in March at 31,501 units.
Mahindra & Mahindra also said its sales of 35,177 units in the said month, up 23.71 per cent over the same period last year, were its best ever monthly performance.
Homegrown Tata Motors said it recorded a 23 per cent increase in its total sales in September at 64,668 units compared to 52,513 units in the same month in 2009.
Ford India reported over two-fold jump in sales at 8,380 units in September on the back of a good response to its latest small car Figo.
While General Motors India saw sales climbing by 12.58 per cent to 8,617 units in September, Toyota Kirloskar Motor reported an 8.47 per cent jump in sales at 6,235 units during the month. Similarly, Honda Siel Cars India reported 33.38 per cent jump during the month at 7,728 units.
In the two-wheelers segment, the country's largest two-wheeler maker Hero Honda reported a jump of 8.06 per cent in its sales at 4.34 lakh units during the month under reference. The company had sold 4.01 lakh units in the corresponding month last year.
Chennai-based TVS Motor Co reported its highest-ever monthly sales of 1.88 lakh units in September, 30.78 per cent higher than the same month last year.
The company had registered total sales of 1.44 lakh units in the corresponding month of 2009.
Another player, India Yamaha Motor reported 13.53 per cent increase in its total sales in September at 33,944 units, up from, 29,900 units in the same month last year. — PTI
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