Pre-Budget Quotations of Yash Birla Group (YBG) Companies.

Dear Sirs:

 

We are attaching the pre-budget quotations of two Yash Birla Group (YBG) Companies – Birla Accucast Ltd. & Indian Tool Manufacturers (ITM). Both are in the auto components sector.

 

Kindly have it published in the "Budget Line" column which appears in the Hindu Business Line.

 

Regards,

Parthiv Kamani

Principal Consultant

Blue Lotus Communications

Ph: 9820025590/66522804.

 

 

Please find below the responses by Mr. Murali Cherat, CEO – BIRLA ACCUCAST LTD.

 

To benefit auto ancillary following can be considered in union budget. Procedure simplification: ·         To Improve export o   Cenvat rebate: §  Against deemed exports, there is no provision for claiming cenvat rebate, though this is very simple in the case of direct export.  Most of the auto ancillary supplies components to Tier-I vendors in India who in turn export to OEM's overseas.  In deemed export, considerable amount of money is blocked endlessly and acts as a deterrent for smaller companies to support Tier-I companies as a result OEM's some times decide to source it from other countries.  Simplified procedure will enable auto ancillary to export better through Tier-I. §  Since India is in advantageous position to export castings, provide export incentive of 20% against current 5%.  This will make India as a highly attractive destination for sourcing castings that too machined castings both for Europe and USA. ·         To Improve Domestic Consumption side: o   Reduce excise duty further, provide incentive for old vehicle replacement programmes both for cars as well as Trucks, align petrol and diesel prices with international crude price. ·         To improve  employment generation: o   Incentive for second hand plant to be imported from USA /Europe where it will provide employment for more than 100 people in India for mass production. o   Exemption/incentive for JV in castings to be set up in India, irrespective of the location based on export potential as well as number of people employed.

 

 

Attached, please find for your kind perusal a quote from Mr. S.C. Agarwal, CEO, Indian Tool Manufacturers (ITM).

 

Indian Tool Manufacturers expects budget to boost demand for Commercial  Vehicles, Export of Engineering Goods  and investment infrastructure & in Manufacturing Capacity expansion all around. This in turn will generate positive atmosphere foe employment and consumption.   This in turn will generate demand for cutting tools from all sectors of the economy.