Consumer electronics & durables to reach Rs 52K crore by 2015: ASSOCHAM

Growing at a compounded annual growth rate (CAGR) of about 15 per cent, the consumer electronics and durables sector in India is likely to reach Rs 52,000 crore by 2015, apex industry body ASSOCHAM said today.

The consumer electronics and durables industry is currently poised at about Rs 34,000 crore according to a study titled ‘Emerging trends in Consumer Electronics and Durables Industry,’ released by The Associated Chamber of Commerce and Industry of India (ASSOCHAM).

While, global consumer electronics and durables industry is growing at about 10 per cent CAGR and is currently estimated at about Rs 16 lakh crore and is likely to cross Rs 21 lakh crore mark by 2015, according to the ASSOCHAM study.

“Demand for consumer electronics and durables is driven by a young demographic population, coupled with rising disposable incomes amid skilled and highly educated workforce,” said Mr D.S. Rawat, secretary general, ASSOCHAM while releasing the findings of the study.
“Besides, low penetration levels, easy availability of finance options, growing prominence of consumer electronics’ retail stores, online retail industry and a robust 400 million plus Indian middle class with a comprehensive rise in level of affluence is also fuelling the demand in this industry,” said Rawat.

Multi-national companies (MNCs) with superior technology and better quality control account for a market share about 70 per cent of the overall consumer electronics and durables market in India and maintain a strong hold on the urban middle class segement growing at about 12 to 15 per cent, according to the ASSOCHAM study.

The consumer durables and electronics market in rural and semi-urban areas account for about 40 per cent of the overall market and is growing at about 30 per cent CAGR.
Consumer electronics and durables market in India is divided into three segements namely – white goods, brown goods and consumer electronics.

Air-conditioners, refrigerators, washing machines and other domestic appliances fall in the white goods’ category, while microwaves, chimneys, fans, irons, juicers, mixers and grinders fall in the category of brown goods. Television sets, audio and video players, personal computers, laptops, cell phones, digital cameras, camcorders and other electronic accessories fall in the category of consumer electronics.

Rising technological innovations and the decrease in import duty on flat panel LCDs/LEDs television sets in the budget is also likely to fuel demand in the industry.

Rail Budget: Railway minister announces 75 new express trains, 21 passenger trains

 Railway minister Dinesh Trivedi has announced several new trains in his maiden budget speech. Presenting the rail budget, railway minister announced 75 new express trains and 21 passenger trains. He  also announced Guru Parikrama trains to be run to Amritsar, Patna and Nanded. Two double-decker trains and a Shatabdi train are among the new express trains announced in the Rail Budget 2012-13.

Key highlights of Railway Budget 2012:

• 50% concession in fare in AC-2, AC-3, Chair Car & Sleeper classes to patients suffering from ‘Aplastic Anaemia’ and ‘Sickle Cell Anaemia’.

• Extending the facility of travel by Rajdhani and Shatabdi trains to Arjuna Awardees.

• Travel distance under ‘Izzat Scheme’ to increase from 100 kms to 150 kms.

• SMS on passenger mobile phone in case of e-ticket to be accepted as proof of valid reservation.

• Introduction of satellite based real time train information system (SIMRAN) to provide train running information to passengers through SMS, internet, etc.

• On board passenger displays indicating next halt station and expected arrival time to be introduced.

• Installation of 321 escalators at important stations of which 50 will be commissioned in 2012-13.

• Introduction of regional cuisine at affordable rates; launching of Book-a-meal scheme to provide multiple choice of meals through SMS or email.

• Introduction of coin/currency operated ticket vending machines.

• Upgradation of 929 stations as Adarsh Stations including 84 stations proposed in 2012-13; 490 stations have been completed so far.

• Specially designed coaches for differently-abled persons to be provided in each Mail/Express trains.

• Introduction of Rail Bandhu on-board magazines on Rajdhanis, Shatabdis and Duronto trains.

• Setting up of AC Executive lounges at important stations

• 75 new Express trains to be introduced.

• 21 new passenger services, 9 DEMU services and 8 MEMU services to be introduced.

• Run of 39 trains to be extended.

• Frequency of 23 trains to be increased.

• 75 additional services to run in Mumbai suburban; 44 new suburban services to be introduced in Kolkata area, 50 new services to be introduced in Kolkata Metro; 18 additional services in Chennai area.

• 725 km new lines, 700 km doubling, 800 km gauge conversion and 1,100 km electrification targeted in 2012-13.

• Rs 6,872 cr provided for new lines, Rs 3,393 cr for doubling, Rs 1,950 cr for gauge conversation, Rs 828 cr for electrification

• Highest ever plan outlay of Rs. 60,100 cr

• Rae Bareli coach factory manufactured 10 coaches in 2011-12; phase-II of the factory would be commissioned in 2012-13.

• A wagon factory to be set up at Sitapali (Ganjam District of Odisha)

• A rail coach factory with the support of Government of Kerala to be set up at Palakkad; two additional new manufacturing units for coaches to be established in the Kutch area in Gujarat and at Kolar in Karnataka with active participation of the State Governments.

• Setting up of a factory at Shyamnagar in West Bengal to manufacture next generation technology propulsion system for use in high power electric locomotives.

• Creating Missions as recommended by Pitroda Committee to implement the modernization programme.

• Setting up of Railway Tariff Regulatory Authority to be considered.

• New Board Members for Safety/Research and PPP/Marketing to be inducted.

• Rail-Road Grade Separation Corporation to be set up to eliminate level crossings.

• Indian Railway Station Development Corporation to be set up to redevelop stations through PPP mode.

• Logistics Corporation to be set up for development & management of existing railway goods sheds and multi-modal logistics parks.

• National High Speed Rail Authority to be set-up.

• Pre-feasibility studies on six high speed corridors already completed; study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in 2012-13.

• Introduction of a ‘Green Train’ to run through the pristine forests of North Bengal.

• Setting up of 200 remote railway stations as ‘green energy stations’ powered entirely by solar energy.

• Providing solar lighting system at 1,000 manned level crossing gates.

• 2,500 coaches to be equipped with bio toilets.

• Setting up of 72 MW capacity windmill plants in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal.

• Installation of Integrated Security System at all 202 identified stations to be completed in 2012-13.

• Escorting of trains by RPF/GRP extended to 3,500 trains.

• Integration of RPF helpline with the All India Passenger Helpline.

• Setting up of a Railway Safety Authority as a statutory regulatory body as recommended by Kakodkar Committee

• . Three ‘Safety Villages’ to be set up at Bengaluru, Kharagpur and Lucknow for skill development for disaster management.

• Over one lakh persons to be recruited in 2012-13 – backlog of SC/ST/OBC and other categories to be wiped off.

• Introduction of a wellness programme for railway staff at their work places.

• Ensuring proper rest for skilled and technical staff including the running crew.

• Institution of ‘Rail Khel Ratna’ Award for 10 rail sports-persons every year.

• New coaching terminal at Naihati, the birth place of Rishi Bankim Chandra Chattopadhyay commemorating him on 175th Birth Anniversary.

• .Project to connect Agartala with Akhaura in Bangladesh to be taken up in 2012-13.

• Freight loading of 1,025 MT targeted; 55 MT more than 2011-12

• Passenger growth targeted at 5.4 %.

Chennai gets into act to relay roads with plastic wastes

Come Wednesday, the Chennai Corporation has its task cut out – collection of plastic wastes from the residents, which could be reused for relaying main and interior roads.

Taking forward of Dr Vasudevan, Dean ECA & Prof. Department of Chemistry of Thiagarajar College of Engineering, Madurai’s invention of ‘plastic road technology’, the corporation has announced Wednesdays being 'Plastic Collection Day' in the city starting from February 22. 

Road relayed using plastic wastes

Every Wednesday conservancy staff on tricycles, would come door-to-door and collect garbage, will specifically ask for plastic waste, especially thin carry bags and covers in which commodities such as pulses and condiments are packaged, for use in laying roads.

Roads using plastic mixed with bitumen are not only stronger and durable, but also cost-effective and environment friendly.

“We have also made arrangements to collect plastics from students of Chennai Schools and private schools. A few private schools, including Velammal group and Alpha group have already agreed to create awareness among their students and ask them to bring plastics that civic body conservancy staff would collect on Wednesdays. We want 100 tonnes of plastic every week,” said a senior official told Hindu. 

Since January 5, when the laying of plastic-coated bituminous roads began, the civic body has been urging residents to hand over segregated plastic waste to conservancy workers at their doorstep. Special bins, particularly for plastic waste, were installed in all 200 wards.

"We are getting more plastic than we did a few weeks earlier, but we require a lot more," said commissioner P W C Davidar. The commissioner stressed the need for good quality, thin plastic. "We need plastic that is 40 microns thick, which in layman's terms means carry bags," he said.

S.Alfred Devaprasad, president, Alpha Group of Institutions said, “School and college students are going to be a part of this. We are coining slogans and be putting up posters in our institutions. After eight weeks prizes would be given to classes that collect the largest quantity of plastic.” 

MVM Velmurugan, CEO of Velammal Educational Trust said, “Children would come forward willingly to participate and bring in plastic waste in large amounts if the purpose is explained properly to them. It is in the interest of the environment and the society. Our trust's 10 schools would take the responsibility of collecting plastics from 30 neighbouring schools.” 

Having set a target of 800 tonnes of plastic material to lay 370 km of roads at a cost of Rs 110 crore, the Corporation is looking at various options, including collecting plastic waste from manufacturers. Around 8-10 per cent of shredded plastic is blended with the bitumen to lay roads.

Of the 78 km of bus route roads and 292 km of interior roads, the Corporation has so far laid 6 km of BRR and 11 km of interior roads due to unavailability of plastic.  Though the civic body had floated tenders for plastic wastes, sources said that it was not happy with the response. 

The civic body has been buying plastic at 20 per kg from private manufacturers. “Each time the participating companies seem to be quoting higher rates for shredded plastics. So instead we are trying to make the residents give plastic waste that they usually throw away. We are getting shredders for every zone so that the plastic could be made into pellets at the zonal level itself,” the official said.

Residents who have large amount of plastics can also send email to plasticwaste@chennaicorporation.gov.in. The civic body is also taking across the message through electronic media and other means of communication.

India's industrial production to grow by 7.4% in FY13

Mumbai: The country's industrial production is expected to grow by 7.4 percent in fiscal 2013 as against the forecast of 5.1 percent for 2012, Centre for Monitoring Indian Economy (CMIE) said in its monthly review. The industrial production growth stood at 8.2 percent in 2011.

The manufacturing sector is expected to witness a healthy growth of 6.5 percent in fiscal 2013, against forecast of 4.9% in FY 12, CMIE said, reports PTI, adding, this growth would be driven by over 10 percent rise in production of motor vehicles and other transport equipment, machinery, basic metals and wearing apparels India GDP growth.

Rising corporate salaries, increase in rural income, softening of interest rates, improvement in availability of finance, new models and expansion of dealers network could boost passenger cars production by 13.1 percent in FY 13, the report added.

Production of MUVs, two-wheelers and three-wheelers is also expected to grow by around 10 percent. This will lead to higher demand and production in auto ancillary category.

Huge capacity additions in the industrial and infrastructural construction segment and increase in production of automobiles and machinery is also expected to generate higher demand for basic metals in FY 13, CMIE said in a statement.

The mining industry, which saw a stagnation in FY 12, is expected to grow by a healthy 5.6 percent next year.

Thailand looks for its share in Indian retail sector

India’s burgeoning retail sector and government’s decision to open up overseas investment to augment further growth has made many economies, developed and developing,  to vie for their pie in the US$ 550 billion market. ASEAN member Thailand too is looking at various opportunities to invest in India. 

According Adul Chotinisakorn, executive director of the Thai Trade Center in Mumbai, Thai companies should invest in single-brand retail businesses and construction in India while sourcing raw materials for seafood and jewellery industries.

“As India recently approved 100% FDI in single-brand retail businesses, Thai operators such as the Black Canyon cafe{aac} chain and Naraya, the manufacturer and distributor of NaRaYa fabric bags and accessories, could reap full benefits from investing in India,” he says. However, New Delhi has not yet granted the same privilege to multi-brand retail businesses.

ASEAN and Indian markets are booming due to trade and investment potential. Apart from its sheer size of 1.2 billion people, the India market is an ideal sources of several raw materials.

For instance, southern India can supply squid for the Thai seafood industry while there are also abundant supplies of precious stones there. As well, Surat in the western Gujarat State is one of the world's diamond-cutting centres, Bangkok Post quoting Adul as saying.

The Indian government plans to invest $45 billion on infrastructure development over the next five years, opening up numerous opportunities for Thai construction companies to work in India. Currently, Italian-Thai Development Plc has presence in the country.

About 200 million Indians have high purchasing power and real estate developments are now popular in the country, creating opportunities for Thai developers. Pruksa Real Estate Development Plc has already entered the market.

But for Thai consumer products, the potential might not be as strong because low-income Indians tend to buy cheaper locally made goods. For instance, Thai instant noodle is priced at 26 rupees each, compared with five for local brands. Similarly, Thai fruit juice producers cannot compete with the giant multinational Tropicana which has a factory in India.

Thailand has set a target for 10% growth in exports to India to US$6.2 billion this year. Two-way trade was $8.19 billion last year, up 23.29% from 2010. Thai exports increased 17.93% to $5.18 billion while imports rose 33.73% to $3.01 billion in 2011.

Srirat Rastapana, director-general of Trade Negotiations Department, says talks on the bilateral free trade area agreement with India have reached common grounds on rules of origin and customs procedures were concluded.

Both sides agreed on the economic cooperation on creative economy, tourism, science and technology, infrastructure development and construction. They would also help each other in upgrading small and medium-sized enterprises and health care.

Show helmet and fill petrol in Bihar

Riding a two-wheeler without helmet is a common site in many cities in India. As per government records, more than 70 percent of the fatal road accidents involving two wheelers are due to head injuries.  And most of them die due to non-wearing of helmet. As few state governments made it mandatory to wear headgear, Bihar has just joined the bandwagon to reduce the fatality on city roads. 

In a unique order, the Nitish Kumar government has asked the petrol pump owners to deny petrol to bikers who do not wear helmet. Police in the past had launched a special drive against those not wearing helmet. Ranchi police early this month had also started garlanding such riders.

Petrol pump owners have also been asked to set up CCTV cameras. They have also asked to note down the number of a two-wheeler if its rider is without a helmet and tries to get petrol by force.

But will it make bikers adhere road-safety rule? There are people who carry helmet for academic purpose tied in the helmet lock, to just get away from the preying cops. In Chennai, when the DMK government imposed strictures on the bikers to wear helmet, very many protested and opposition made a statement that the move was to fill the coffers of helmet companies close to ministers. 

Women in particular, have argued that wearing helmet would disturb their hair style, trigger hair fall etc. In Chandigarh, when the rule was first implemented, the government first exempted ‘sardars’ from wearing helmet. Later, after a series of protests from women organisations, the police relaxed rule further for fairer sex.  All these show that the administrations are not able to implement the rule, even if it is beneficial for the people, because the latter’s participation is nill.

The bikers can wear helmet before entering the pumping station and once fill their tank, they can tie the helmet again in the lock and ride away. No one can stop them filling their vehicles’ tank.  If the government wants to implement rules on road safety, it should also come simultaneously from the society. People should overwhelmingly follow traffic rules. Also, those who do not want to follow the rules for trivial reasons should be dealt with seriously. Apart from fines and other regular punishments, the habitual offenders’ license should be cancelled permanently.