Indian Rupee Gains 20 Paise To 66.55 Against Dollar In Early Trade

The Indian rupee strengthened by 20 paise to 66.55 against the dollar in early trade on Friday on increased selling of the US currency by exporters and banks amidst sustained foreign fund inflows.

Besides, weakness in the dollar against other currencies following the Fed’s decision to scale back its forecasts on hiking borrowing costs, supported the rupee.

Moreover, a higher opening in the domestic equity market influenced the domestic unit, according to forex dealers.

The rupee had closed at an over two-month high of 66.75 by gaining 47 paise in Thursday’s trade on persistent selling of the American currency by banks and exporters after the US Fed indicated a slower pace on rate hike.

Meanwhile, the benchmark BSE Sensex climbed 101.61 points, or 0.41 per cent, at 24,778.98 in early trade on Friday.

 

Source:.financialexpress.com

Hindustan Unilever Sells Rice Exports Business To Lt Foods

MUMBAI: Hindustan UnileverBSE -0.38 % has agreed to sell its rice exports business to LT FoodsBSE 6.04 % for Rs 25 crore as part of its strategy to exit non-core businesses.

The deal transfers inventory along with two rice brands - Gold Seal Indus Valley and Rozana - to LT Foods' Middle East arm. Both these brands had combined sales of Rs 51 crore last fiscal.

"Given the context of our portfolio priorities, we believe that it is in the best interest of the business to sell these brands to a strategic player such as LT Foods, who is capable and well positioned to unlock their full potential," said Sanjiv Mehta, Managing Director of HUL.

The Indian unit of Anglo-Dutch Unilever began exporting premium basmati rice in three decades ago to several countries in the Middle East and Europe, which was subsequently extended to other brands and geographies.

HULBSE -0.38 % will continue to manage the business until the completion of the transaction which is expected to close over the next few months.

HUL had been struggling with high costs and an unmanageable workforce in the low-margin business. The maker of Knorr soup and Lipton tea has been focusing on core packaged food and beverage brands with higher margins and exited tea plantations, oil, fats and biscuit businesses over the past decade. Just two quarters ago, it sold its bread and bakery business under the Modern brand to the Everstone Group.

HUL's food business accounts for less than a fifth of sales compared with parent Unilever, which gets about 45 per cent of its global sales from foods and refreshments.

 

Source :economictimes.indiatimes.com

German Smes To Invest Rs 3,000 Crore To Set Up Projects In India

BERLIN: German Small and Medium Enterprises (SMEs) have pledged to invest over Rs 3,000 crore for the 'Make in India' initiative for setting up of new manufacturing plants and projects.

The German SME's (Mittelstand) have committed an investment of over Rs 3,000 crores for 'Make In India' under the Make in India Mittelstand (MIIM) initiative, said India's Ambassador to Germany Gurjit Singh during a business event held at the Indian Embassy here.

The investments will result in setting up of 15 new manufacturing plants, 6 expansion projects and 2 pilot projects covering the states of Maharastra, Gujarat, Karnataka and Tamil Nadu.

MIIM, launched in September 2015, is an investment facilitation programme being implemented by the Indian Embassy in Berlin with the support of Department of Industrial Policy and Promotion ( DIPP) and Investment and Technology Promotion (ITP), Division of the Ministry of External Affairs to attract investments by German Mittelstand (SME) companies.

According to a release by the Indian Embassy in Berlin, during the first six months of the MIIM programme, 26 German companies have committed to 'Make In India' with the support of the MIIM programme.

In the last six months, three companies from the area of wind turbine technology, consumer appliance have announced their entry into India with significant investments.

Five companies have successfully formed their Joint Ventures (JVs) and incorporated their Wholly Owned Subsidiaries (WOS) in India during the period.

Five more companies are in the process of setting up their JVs/WOS in the coming months, it said.

Dirk Wiese, member of German Parliament and Member of the Indo-German Parliamentary Friendship Group said that the MIIM programme was the perfect complement for the Mittelstand- driven German economy.

He also highlighted the role played by the Make In India programme in strengthening the Indo-German economic partnership.

Mario Ohoven, President of the German Association for Small and Medium-sized Businesses, at the event promised support of his association towards the MIIM programme.

 

Source :economictimes.indiatimes.com

India Sets New Steel Quality Standards; Auto-Grade Imports Exempt For 6 Months

 India imposed quality standards on steel products sold in the country on Thursday, but delayed bringing auto-grade steel imported by car makers under the ambit of the new order by six months.

Indian car makers import about 1 million tonnes of high-tensile steel annually, mainly from Japan and South Korea, and had sought an extension to avoid disruption in production.

Quality standards for all steel products, except auto-grade steel, will come into effect on March 18.

India was expected to delay the implementation of quality standards on auto-grade steel imports, Reuters reported on Wednesday.

 

 

Source :.business-standard.com

India Cancels Corn Import Tender, Puts Off Plans To Buy More: Sources

NEW DELHI: India has cancelled a tender to import 240,000 tonnes of corn, trade and government sources said, hoping for a bigger-than-expected local summer harvest and following uncertainty over the availability of non-genetically modified corn as demanded.

Global traders such as Agrocorp, Concordia, Noble, StarcomBSE -1.97 % and Daewoo International submitted bids on Feb. 12 to supply 240,000 tonnes of corn in a range of $194.62 and $221.50 per tonne.

By cancelling the latest import tender, India has put off plans to import any more for now, the sources said on Thursday. In a previous tender, New Delhi secured supplies of 250,000 tonnes of Ukrainian corn.

Late last year, the government asked state-run trader PEC Ltd to import half a million tonnes of duty-free corn after two droughts in a row clipped output, announcing the country's first such overseas purchase in 16 years.

In its first international tender competition launched in January, the government-backed trader awarded a contract to South Korea's Daewoo International to supply 250,000 tonnes of yellow non-genetically modified corn.

"Of the 250,000 tonnes, PEC has already received about 130,000 tonnes and ships carrying another 120,000 tonnes are plying international waters," said a trade source.

Since India doesn't allow genetically modified (GM) food crops, PEC sought in its import tender only non-GM corn, a condition that looked like a tall order to many trade and industry experts, as only a handful of countries grow grain which would qualify.

PEC will sell imported corn directly to poultry units and starch manufacturers.

India has traditionally been a major corn exporter to southeast Asia, but higher local prices because of the first back-to-back drought in nearly three decades and rising domestic demand hampered exports.

The dramatic switch in India's position in the market has brought cheers to rival suppliers such as Brazil, Argentina and the United States.

Indian farmers grow corn twice a year. The winter crop is planted in October, with harvests in March and April. The farm ministry last month forecast India's summer harvest at 5.41 million tonnes, down from 7.16 million tonnes.

 

Source:economictimes.indiatimes.com