Category — Sourcing

India’s Motherson Sumi Expands Internationally

Noida, India-based auto component maker Motherson Sumi Systems consolidated net profit stood at $108.81 million in the quarter ending March 31, 2017, a better-than-expected 20 percent growth. Motherson Sumi’s net sales outside India rose over 14 percent to 94.76 billion rupees (GB Please convert to USD)

CFO of Motherson Sumi Systems, G. N. Gauba told Press Trust of India, “We have earmarked $300 million capex for the current fiscal. The investment will mainly go into the upcoming nine manufacturing plants across the world.”  The company will set up three plants in India, three in Hungary, one each at South Korea, Mexico and the United States, he added.
Auto parts from Motherson Sumi Systems
Currently, the company operates over 180 facilities across the globe catering to various automobile OEMs including Mercedes- Benz, Audi, Toyota, Ford and Suzuki, reports the Economic Times. It has set a target of achieving a turnover of  $18 billion by 2020 through global expansion.

May 22, 2017   No Comments

GM Makes India an Export Hub

While closing down sales of its automobiles in India, Michigan-based General Motors will continue making vehicles in India, primarily as an export hub for Mexico, Central America and South America. The company also plans to maintain its technical center, R&D facilities, and sourcing components.

“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” GM Chairman and CEO Mary Barra said in a statement. “We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility.”

GM Logo

In addition to ending sales in India, GM will also pull out entirely from South Africa, and the Chevrolet brand will officially exit India and South Africa by the end of 2017, reports FOXBusiness.

May 22, 2017   No Comments

India’s Shrimp Industry Shows Steady Growth

India’s export of shrimp was 382,959 tons in Calendar Year 2015, up 9.8 percent from the previous year
India’s cultured shrimp production in the year ending March 2015 was about 426,500 tons, up 30 percent from the previous year (Figure 1). From  2005  to 2015, shrimp production has grown at a compound annual growth rate of 13 percent.
Fig 1. Cultured Shrimp Production Rising

Fig 1. Cultured Shrimp Production Rising

The introduction of white leg shrimp (Litopenaeus Vannamei, or Vannamei) in 2009 spurred growth in shrimp production during the last few years and displaced sales of the other major shrimp species such as the tiger shrimp (Penaeus Monodon) which was found to be susceptible to disease. In FY 2015, the production of the white leg shrimp (Vannamei species) rose to  353,000 tons, which was 81 percent of the total shrimp production in India. This species is preferred since it has a fast growth rate, is disease resistant, needs lower feed requirements, and exhibits a higher survival rate.  In 2015, the area under shrimp production in brackish water aquaculture was 121,600 hectares, which was up from 102,500 hectares in 2010. Industry sources indicate that shrimp production accounts for 25 percent of the brackish water aquaculture.
Accounting for 65 percent of the total shrimp produced in India, the state of Andhra Pradesh is India’s largest cultured shrimp producer. This is followed by West Bengal, Tamil Nadu & Puducherry (earlier known as Pondicherry), Gujarat, and Odisha. Tiger shrimp (Penaeus Monodon) are farmed in the states of West Bengal, Odisha and Kerala, while the Vannamei species is preferred in the states of Andhra Pradesh, Gujarat, Tamil Nadu and Odisha.
Although most of India’s shrimp production is exported, its broodstock is imported. According to industry sources, India imports 98 percent of total broodstock specific-pathogen-free (SPF) Vannamei broodstock from U.S.A., and in Calendar Year 2015 import of broodstock from the U.S. reached $10.8 million  In addition to broodstock, Artemia Cysts, which are used as live feed during the larvae raising operations in shrimp hatcheries, are imported as well. In CY 2015, 97 percent of India’s Artemia Cysts worth $15.44 million were imported from the United States, says a GAIN report.

May 15, 2017   No Comments

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

India’s VEQTA Signs with Major League Baseball

New Delhi-based Veqta, India’s streaming video service, and the country’s first over-the-top service focused on sports content, inked a partnership with Major League Baseball.

Per the deal, Veqta will stream over 20 live MLB games each week during the regular season, along with full coverage of the league’s major events, including the All-Star Game, Wild Card Games, Division Series, League Championship Series and the World Series says The Hollywood Reporter.

Veqta Logo

Co-founded by Varun Mathur and Vikram Tanwar in April 2015, Veqta raised $500,000 in seed capital in May 2016. “We are thrilled to have Major League Baseball, one of the biggest names in the world of sport, partner with us,” said director Vikram Tanwar. “Baseball has a niche audience here [in India] and we wish to grow it further,” he added.

May 3, 2017   No Comments