30 YEARS AGO A punctured industry


High profits of tyre companies are now a thing of the past. Over-capacity and market resistance to high prices have meant low returns for a good number of years. Only fundamental changes in the govern­ment’s excise policies ean help the industry regain financial stability and meet its new challenges.

EEd The tyre industry was de-licensed in 1987. Since then the industry has grown manifold. Today it pro­duces over IS lakh MT of tyres annually. The current problem faced by the industry is imports – particularly from China. Industry sources say 20 per cent of the car and 25 per cent of truck replacement is accounted for by imports. Members of the tyre industry have asked the government to place immediate restrictions on Chinese tyre imports in line with the duties imposed by countries such as the US and Brazil.

At the end of September 2014, the board of Marico Kaya decided to merge the company with Kaya, a wholly-owned subsid­iary of the company. For every share, Marico Kaya shareholders were entitled to one share of Kaya. In its filing the company said the shareholding structure of Kaya will mirror the shareholding structure of Marico Kaya.

Marico Kaya was carrying out the busi­ness of skin care through Kaya clin­ics. Kaya was also in a similar skin care busi­ness. Both operated in India and over­seas. The rationale for merging Marico Kaya with Kaya was that it would help eliminate multi-layered struc­ture, unlock value for

the shareholders of

Marico Kaya and reduce administrative and operation costs.

The merged entity chose to carry on with the name Kaya dropping the Marico tag. Mid-August this year Kaya got listed on the exchanges. The number of outstanding shares of Kaya is 1.289 crore the same as Mar­ico Kaya had when it got listed in July 2014. The shareholding pattern of Kaya is the same as of Marico Kaya. The market cap of the combined entity is ?1,660 crore.      ♦


Regaining lost glory

The next two years will be crucial for ntpc. As more and more IPP projects come on stream, NTPC’s staff will feel more insecure…. Except to serve as a spur to greater effort, the competition posed by ipps is essentially a red herring.

CEEl/n spite of the growth of the private sector NTPC is still the country’s largest power producer with an installed capacity of45,548 MW. It accounts for 17 per cent of the total installed capacity in the country, ntpc went pub­lic in 2004 and was awarded the Maharatna status in 2010. NTPC has set a target to have an installed capacity of 1,28,000 MW by the year 2032. NTPC’s market cap is?98,451 crore. According to CEA (Central Electrical Authority) the total installed capacity as of end june 2015 is 2,74,818 MW. The private sector accounts for 1,05,632 MW (38 per cent), state boards have 96,015 MW (35 per cent) and central boards have 73,171 per cent. The high percentage of the private sector is because it has 35,777 MW (13 per cent of the total) of installed capacity which fall under renewable energy sources.

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