With an aim to increase its profit margins and optimise the tax benefits available under the concessional industrial package (CIP) 2003 for Uttarakhand, Bajaj Auto has undergone yet another expansion in its Pantnagar manufacturing facility. Through this expansion, the capacity of the plant is being raised to produce 150,000 units per month. An initial investment of Rs 75 crore has already been made. Production at the Pantnagar plant is considered to be the highest among all the other plants of the company.
Significantly, Bajaj’s move came after the Central Board of Excise and Customs (CBEC) recently decided that the industries in Uttarakhand and Himachal Pradesh, which were provided full excise exemption under the hill based incentives, are entitled to expand and introduce new products. The production at Bajaj’s Pantnagar unit is being increased up to 18 lakh units from 12 lakh units per year in view of the good demand in the auto market. Last year also, the company had carried out a sizeable expansion scaling up the production from 6 lakh units to 12 lakh units per year at its 66 acre facility. The company is currently producing two variants in each of its top models – Platina and Discover from Pantnagar plant which produced over 914000 bikes in FY 2011 versus 578000 during FY 2010.
Like Hero Honda and other auto companies, which are taking considerable benefits from the CIP, Bajaj Auto began production in 2007 in order to take the advantage of the tax sops which include 10 year long cent per cent excise rebate. The company had initially invested Rs 230 crore at Pantnagar. With the auto boom in the market, Bajaj Auto has improved its market share from 27 per cent in H1/2009-10 to 34 per cent in H1/2010-11.
| Company Name | CMP |
|---|---|
| Bajaj Auto | 9471.50 |
| Hero MotoCorp | 4791.20 |
| TVS Motor | 2414.00 |
| Eicher Motors | 4982.70 |
| Atul Auto | 547.25 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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