The Japanese auto giant Suzuki Motor Corporation (SMC) is expected to begin construction of its second manufacturing plant in Gujarat by 2021. The Suzuki intends to infuse £900 million for setting up a new facility at Vithalapur, some 35 km from its existing plant in Hansalpur near Mehsana. The land acquisition for the new plant is likely to be completed soon. “Once the construction of the third assembly line at Hansalpur is completed, the company will start building the new plant by 2021,” said a source close to the development. At its Hansalpur plant the company has commissioned the first assembly line with 2,50,000 units capacity. The second and third assembly lines at the site with capacity of 2,50,000 units each are expected to come up by early 2019 and 2020, respectively. All the three lines would take the total manufacturing capacity to some 7,50,000 cars per annum.
TCS grows in double digits after 8 quarters
Tata Consultancy Services (TCS) has touched double-digit revenue growth in constant currency after eight quarters. What’s more, the growth came not by compromising on margins, but by actually raising it. Operating margins rose by 1.5 percentage points to 26.5% - by far the highest among the top IT services companies. The net addition of 10,227 people in the quarter, its highest in 12 quarters, also indicated the growing optimism. TCS CEO Rajesh Gopinathan described it as a “big landmark quarter for us both as a company and as a management team”. He said the company is “very happy with the position that we see ourselves in and are resetting our focus from medium to long-term perspective while we continue to execute in the short term so that this trajectory is maintained”.
Honda to invest £920 mn, largest for India car biz
Japanese car major Honda plans to pump in over £920 million, its largest investment for India, to set up a third factory to launch hybrid and electric vehicles, and drive in new models and upgrades. The fresh investment will double the company’s financial commitment in India to over £1.85 billion since it began operations in 1998. “India is one of the most critical markets for Honda globally, and we want to strengthen our operations here,” Honda Cars India president & CEO Gaku Nakanishi said. “The new investment - which we plan to make over the next decade - signals our commitment towards the growth potential in the Indian car market and underlying strength here.” Honda currently has two factories - the first one at Greater Noida in Uttar Pradesh and the second at Tapukara in Rajasthan. The company’s installed production capacity stands at 2,80,000 units annually, higher than 1,70,000 units it sold in 2017-18. Nakanishi said new models, introduction of cleaner technologies, and a greater retail push has prompted the company to chalk out expansion plans.
Infosys Q2 consolidated net profit rises 10.3%
India's second-largest IT firm Infosys reported a 10.3 per cent growth in its consolidated net profit at £411 million for the quarter ended September 2018. It had posted a net profit of £372.6 million in the year-ago period, Infosys said in a BSE filing. The firm's revenue grew 17.3 per cent to £ 2.06 billion in the quarter under review as compared to £1.76 billion in the same period of 2017-18, it added. "We are delighted with our broad-based growth across all business segments and geographies during the quarter. This is a testimony to our strong client relationships, digital-led full service capabilities, and intense focus on the needs of our clients," Infosys CEO and managing director Salil Parekh said. He added that large deal wins at over $2 billion during the quarter "demonstrate our increased client relevance and also give us better growth visibility for the near-term". Digital revenues at $905 million make 31 per cent of total revenues, it said. The company retained its FY'19 revenue guidance in constant currency at 6-8 per cent.
