HDFC chalks out a major foray into education

Underexposure

Image by Unlisted Sightings via Flickr

Housing Development Finance Corporation (HDFC), India’s largest housing finance company, will make a big-bang entry into education. HDFC will look at small towns to either set up schools or take over defunct boarding schools. The entry into education will be made through a separate subsidiary. HDFC directors will need to be on the board of schools as trustees. When a company director becomes a trustee on a school’s board, he can co-opt another trustee and the trust can be taken over. The trust can then sign agreements with interested parties to manage the assets. 

Kindergarten to class 12 (K-12) is said to be the most attractive segment of the education market, as a student usually stays on for 12 years. The K-12 segment will be the direct beneficiary of rising middle-class incomes in India. HDFC already has an educational loan unit — Credila Financial Services — in which it raised its stake to 51 per cent in July. Credila plans to leverage the distribution network and customer base of HDFC Bank to expand and also bring down the cost of funds.

Credila, which hopes to grow its loan book 2.5 times in the current financial year, is also in talks with other banks to diversify sources of funds. It has a line of credit from Punjab National Bank. At present, Credila lends around 65 per cent to students pursuing courses within the country. The company charges interest rates of between 9.75 per cent and 12.5 per cent on loans of up to Rs 50 lakh, unlike PSBs, which do not lend more than Rs 20 lakh.

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LIC Housing Finance has managed to keep its NPAs under 1 per cent for more than nine consecutive quarters.

The corporate loan portfolio of LIC Housing Finance Company, whose CEO is accused in a bribery case, constitutes only 11 per cent of its total loan book, as against around eight per cent last year. The retail portfolio, at 89 per cent, constitutes the major portion of the housing finance company's book.

As on September 30, the housing finance company's outstanding home loan portfolio stood at Rs 43,385 crore. Of this, loan to builders and developers works out to around Rs 4,800 crore, as against around Rs 2,600 crore in the year ago period. The asset quality of the corporate loan book is good with the gross non-performing assets from this segment at 0.08 per cent as on October 31, 2010. This is lower than the gross NPAs from the retail segment which stood at 0.84 per cent.

LIC Housing Finance has managed to keep its NPAs under 1 per cent for more than nine consecutive quarters. As on September 30, the net NPAs of the company stood at 0.21 per cent. In the fiscal ended March 2010, the company grew its loan book by 38 per cent and registered a 70 per cent year-on-year growth in disbursements. In the first six months of the current fiscal, LIC HF's loan book expanded by 36 per cent while disbursements were up by 37 per cent.

Source : News Reports




IPO Note: Manganese Ore India Ltd (MOIL) – Subscribe says Aditya Birla Money

Manganese Ore India Ltd. (MOIL) is India’s largest manganese ore miner based on manganese ore production. In FY10, MOIL produced 1.09mn tonnes of raw manganese ore, accounting for more than ~40% of India's manganese ore production. MOIL’s total manganese ore resources and reserves as per JORC code amount to 69.5mn tonnes and 21.7mn respectively. MOIL has high quality manganese ore reserves. 55% of MOIL’s manganese ore reserves have an average manganese content of above 40%, which is considered high grade; 27.5% of it have an average manganese ore content of between 36.0% and 39.9%; and the rest has an average manganese ore content of not less than 30%. Also, unlike other PSU’s, MOIL enjoys complete autonomy in pricing and gets the full benefit of soaring international manganese ore prices on account of high demand from China (MOIL’s average sales realisation per tonne of manganese ore was `11,709.4 in H1FY11 as compared to `6501.3 in FY08). As ferro alloys cost comprise a miniscule proportion of the total cost of steelmaking, pricing of manganese ore does not invite government interference. Also, most of MOIL’s reserves are deposited in areas with favourable geological and mining conditions and are of regular shape, and its mines benefit from well-developed road and rail infrastructure. This leads to low capex and low extraction cost for MOIL. Strong global manganese ore prices and low operational costs combined have enabled MOIL to earn strong EBITDA margins of above 60%, annual profits between `4.7-`6.7bn and an RoE of above 30% over the last 3 years. With low capex and strong operating cash flows, MOIL has been a zero debt company and accumulated net cash of `17.6bn (cash per share of `104.9) as on 30th September 2010. Its net cash translates into 28% of its market cap at the higher price band of `375. MOIL also has a good dividend paying track record with a consistent dividend payout of 20% over the years.
Going forward, MOIL is likely to grow its earnings and long term value through capacity expansion from existing mines, accretion of reserves through exploration, forward integration into ferro alloys, and cost efficiency improvements. Its large size of manganese ore production and reserves, and having a market share of more than 40% in India makes MOIL well positioned to capitalise on the wide demand-supply gap for manganese ore in India and strong global manganese ore pricing.
At the higher price band of `375, MOIL trades at an annualised P/E and EV/EBITDA of 9.5x and 4.7x FY11E. Net of cash (`104.9/share), the core business is available at 6.4x annualised earnings for FY11. There is no pure play manganese ore domestic peer worthy of comparison. Major global manganese ore players are diversified miners, so wouldn’t be strictly comparable. Other domestic mining companies like NMDC and Coal India trade are trading at 14-17x FY11 earnings. Given the favourable fundamentals of the manganese ore industry in terms of strong global pricing and India’s net importer status, MOIL’s large size in terms of production and reserves, its low capex requirements and low extraction cost and a strong balance sheet, we believe that MOIL’s IPO has been attractively priced. We believe that MOIL is an excellent long term bet on the natural resources sector and should be part of the core portfolio of an investor. We recommend SUBSCRIBE, both from a short and long term perspective, to MOIL’s IPO at the higher price band of `375. There is a retail discount of 5%, i.e. ~`18.75/share as well which makes it even more attractive.

Source :  Aditya Birla Money Research Report

Shree Renuka Sugars: Brazilian acquisitions a game changer, buy says Motilal Oswal

Shree Renuka Sugars: Brazilian acquisitions a game changer, buy says Motilal Oswal.

Brazilian acquisition: In FY10 SRS acquired 100% in Vale do Ivai and 50.34% in Renuka do Brasil (the erstwhile Equipav) which propelled it from a leading Indian sugar company to among the largest integrated global sugar players. SRS now stands to benefit from the ongoing recovery in the global sugar industry. Brazilian acquisitions are characterized by (i) assured low cost cane availability for 6-12 years, and (ii) a settled balance sheet with debt at less-than-market costs and repayment over years. Cash flows from the Brazilian operations would be self sufficient to meet obligations and yield a surplus. We model a payback period of four years for VDI and seven for Renuka do Brasil. Renuka's Brazil business (seventh largest by size) has potential to list and unlock value for Renuka shareholders in the medium term.

SRS's integrated, diversified and flexible business model makes it more resilient to cyclical downsides. Over FY06-10, SRS grew from a relatively small domestic sugar play to a global giant, maintaining average RoE of 32.4% and EPS CAGR of ~20% in a cyclical industry, which speaks volumes about its innovation, vision and capabilities.

View & Valuations: SRS is the best proxy to play the global sugar industry recovery and is a direct play on rising sugar/ethanol prices. Strong cash flow visibility will allow it to de-leverage itself and address concerns regarding its high leverage. We expect SRS to post revenue and net profit CAGR of 19% and 20% respectively, over FY10-12. Motilal Oswal value SRS at Rs119, based on EV/EBITDA of 6 times FY12 EBITDA an upside of 32%. Initiate coverage with Buy.
Source : Motilal Oswal Research Report

Shipping Corporation of India Ltd - IPO Note : SUBSCRIBE says Ventura

Issue Details
Listing NSE & BSE
Offer Open date 30th Nov 2010
Offer Close date 3trd Dec 2010
Promoters President of India
Price Band 135 -140
Industry Shipping
Valuation & Recommendation
At the upper end of price band of Rs.140 the stock is valued at a P/E of 8.9x and P/BV of 0.9x. The industry composite PE stands at 14x. Issue pricing is considered aggressive given the stock is currently quoting just above the issue price. However, with reasonable valuation, a sustainable business model and traction in revenues, Ventura recommend SUBSCRIBE to the issue for long term gains.
Source : Ventura Research report

Our take : Listing gains are uncertain. There are few risks and cyclical nature of business makes it unattractive. Hence investchips don't recommend this issue.


IPO Update - Claris Lifesciences Ltd (Revised) : SHAREKHAN


Claris Lifesciences Ltd
Price band (Revised): Rs 228 to Rs 235
Issue opens on: November 24, 2010 | Issue closes on (Revised): December 2, 2010
Issue opens on: November 24, 2010
Issue closes on (Revised): December 2 , 2010
Lot size: 22 shares and in multiples of 22 shares thereafter
Revised Price band: Rs228 - Rs235
Issue size: Rs 300 crore

Issue highlights (source: BRLM/RHP)

  • Claris Lifesciences Ltd (CLL), is one of the largest Indian pharmaceutical companies catering to the niche segment of sterile injectables.

  • CLL has presence across 76 countries and achieved approximately 1,100 product registrations worldwide with 332 pending approval.

  • CLL has been successful in garnering approvals from foreign regulatory authorities which include USFDA, MHRA (UK), TGA (Australia) and GCC FDCA.

  • The Key products of CLL such as propofol, iron sucrose, hydroxyl ethyl starch, ciprofloxacin and metronidazole have large markets worldwide with very little competition for CLL on these products due to the company's complex manufacturing process.

  • CLL believes it is the sole company in India that possesses the technology to produce unibag non-PVC infusion system. Thus, the company plans to leverage this expertise and competitive advantage by aggressively marketing these drugs and gain a strong foothold in the global markets.

  • Its business arrangement with pharmaceutical behemoth Pfizer Inc. with a view to expanding its business in the USA and the other regulated markets will significantly augment revenues and bottom line with higher product and facility approvals from the USFDA and other regulatory bodies.

  • Its shareholders includes renowned private equity player Carlyle PE, which invested Rs90.5 crore in it in March 2006 for a 13.9% stake.

  • Financial Performance: Total sales grew at a compounded annual growth rate (CAGR) of 29%, its earnings before interest, tax, depreciation and amortisation grew at a CAGR of 59% and its net profit increased at 65% over FY2005-09.


SBI MF Launching- SBI Debt Fund Series 18 Months-4

Launching SBI Debt Fund Series 18 Months-4
SBI Debt Fund Series is a Close-ended Debt Scheme and the objective is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments.
Advantages
Choose your investment option: Growth or Dividend (payout)
Eligible for Double Indexation as per current Tax Rules
Scheme will be listed on the National Stock Exchange (NSE)
 

Load structure New Fund Offer Open On: 30 November 2010
Entry Load Not Applicable
Exit Load: Not Applicable. Since the scheme will be listed on the Stock Exchange, there will be no Exit Load.
 
Asset Allocation Instruments

Indicative Allocation

(% of Total Assets)

Risk Profile
  Maximum Minimum High/Medium/Low
Government of India dated Securities and Treasury Bills, PSU, and Corporate Bonds/Debt Instruments*, Money Market Instruments 100% 0% Low to Medium
*Exposure to Securitized debt may be to the extent of 40% of the net assets
Options Offered Growth and Dividend (Payout)

Minimum Application

Amount in (Rs.)

5000/- and in multiples of 10/- there after


 

www.sbimf.comSBI MUTUAL FUND


Sundram Mutual Fund Changes Registrar and Transfer Agent

BNP Paribas ParisOpera

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As you are aware, currently Computer Age Management Services (CAMS) is acting as Registrar and Transfer Agents (R&TA) for the Schemes of Sundaram Mutual Fund namely, Sundaram India Leadership Fund, Sundaram Select Thematic Funds Rural India, Sundaram Select Thematic Funds Entertainment Opportunities, Sundaram Balanced Fund, Sundaram Select Thematic Funds PSU Opportunities and Sundaram Monthly Income Plan-Aggressive, Moderate & Conservative.
The R&TA is being changed from CAMS to Sundaram BNP Paribas Fund Services (SBFS) for the above mentioned schemes, effective from 6th December, 2010. Effective from the above said date, all financial and non financial transactions related to the above schemes shall be accepted only at Sundaram BNP Paribas Fund Services offices.

The address of the new Registrar as below:

Sundaram BNP Paribas Fund Services Ltd,
Central Processing center,
RR Towers II, Third Floor,
Thiru-vi-ka Industrial Estate,
Guindy,
Chennai 600 032.
Toll Free: 1800 425 7237
Email: customerservices@sundarambnpparibasfs.in

A full list of 141 Customer Care Centers of SBFS is available at www.sundarambnpparibasfs.in and www.sundarammutual.com.

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NSE launches mobile trading for all investors


The National Stock Exchange has  starting mobile trading for registered clients in the country. So far, only a handful of Member brokers had the option of providing this facility to clients. Member brokers will now have to only go through the regular compliance before facilitating their clients for mobile trading. Clients can trade through their GPRS enabled mobile set, while traveling anywhere in India or abroad. They can trade in the cash market, derivatives or currency, just like they can trade through their trading terminals and at the same speed. The clients’ mobile will be connected to the internet, then to the NOW platform (the software which is being used by a majority of the NSE brokers) which is connected to the exchange. This is very similar to the way a client can trade through a dealer terminal or through ‘nowonline.in’, the website through which trade is possible, without the broker’s intervention.
To access the application, the client will need to provide the valid login id and password; He will be  provided access to live market data and the ability to trade.
A client can see the ‘Market watch’ page on his mobile screen. This will display all the available indices and constituents of these indices. The viewer can see the last traded price, percentage change, best bid, best bid quantity, best offer and best offer quantity.
The user can place, modify and cancel orders. Each client’s orders & trades are subject to the limits provided by the respective Member broker.
CEO and MD Mr. Ravi Narain said’’ This is another facility the exchange is providing to the large universe of investors, to make trading simpler and easily accessible to clients on the move. Someone sitting in a remote corner like Darbhanga or Siliguri can see market watch and execute trades. We expect that nearly 5 million investors would benefit from this move.’’
Several safeguards have been built in, to ensure that the right people trade and messages are not tampered with.
1) Clients interested in Mobile Trading need to sign the modified Member-client agreement
2) A Member has to enable a client for Mobile Trading
3) Identification through unique user id and password
4) A Comprehensive password policy has been implemented, with compulsory expiry of password after 14 days and automatic locking of user id after 3 unsuccessful attempts. The use of the last three passwords will not be accepted.
5) Only duly authorized clients’ orders will be allowed to be placed.
6) Online risk assessment will be done of all orders placed. Only orders within the parameters, specified by the risk management systems will be allowed to be placed
7) Message integrity will be ensured through end to end encryption
8) Data will not be stored in the mobile for long, so that if it’s lost, data doesn’t get stolen

Titan eyes 25% jump in topline in FY11

Tanishq

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Watch and jewellery maker Titan Industries has lined up Rs 150 crore capex for the current fiscal to expand its retail network across all its formats even as it expects a healthy 25 per cent jump in its topline in FY11. Titan Industries currently has 600-odd retail outlets in the country across all formats such as Titan World, Tanishq, Fastrack and Eye+ among others. It plans to add another 100 stores by end-this fiscal.

The growth will be driven by good festive sales of around 30 per cent and continued robust performance in its watch and jewellery business besides growth in exports. Titan, which exports its watches to South Africa, is now looking at entering new geographies in Asia, mostly south- East Asian countries such as Malaysia, Vietnam and Singapore. Currently, exports comprise only 8 per cent of the total revenues. It expects that (exports from watches) to grow to 12 per cent by FY13.

Source : News Reports

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Claris Lifesciences’s IPO subscribed 0.09 times on its second day

It has received 829378 bids against the issue size of 8848921 shares
Drugmaker Claris Lifesciences’s initial public offering (IPO), with the aim of raising around Rs 300 crore, has been subscribed 0.09 times on second day. It has received 829378 bids against the issue size of 8848921 shares, 651134 bids have been received at the cut off price, as per the data available on NSE website at 17.00 pm.
It has set a price band of Rs 278-293 a share for its IPO of 36,00,000 equity shares. The issue of the company opened for subscription on November 24, 2010 and will close on November 26, 2010.

Source : News Reports



Manganese Ore India Ltd (MOIL) IPO – Subscribe says Sharekhan and Ventura

MOIL Limited (MOIL), a Miniratna public sector unit, incorporated in 1896, is India’s largest producer of manganese ore by volume.
Issue Details
Listing NSE & BSE
Offer Open date 26th Nov 2010
Offer Close date 30th Nov 2010
Promoter GoI
Price Band 340-375
IValuation & Recommendation
MOIL is valued at its P/BV of 3.4x and 3.7x at the lower & upper price band respectively. The company’s RoNW stands at a comfortable 27.8% and a competitive P/E of 12.3x and 13.5x at its lower & upper price band, respectively, which gives a strong signal of growth. With the company having attractive valuation, a
sustainable business model, a large resource base and traction in demand, Ventura recommend a SUBSCRIBE on the company for listing gains as well as for a medium to long term horizon.

Sharekhan said that according to the Indian steel ministry, India is expected to become the second largest producer of crude steel in the world by 2015-16. This augurs well for the manganese ore demand. MOIL being the largest producer of manganese ore in India is well positioned to tap this increasing demand.
Also, the company has a strong balance sheet and return ratios along with a stable dividend policy (the company pays about 20% of its earnings). At the issue price band of Rs340-375, the stock is offered at 12.2x and 13.5x FY2010 earnings. On enterprise value (EV)/earnings before interest, tax, depreciation and amortisation (EBITDA) terms, the stock is offered at 7x and 8x its FY2010 EBITDA. The EV/ EBITDA multiple comes down further to 4.9x and 5.7x on TTM EBITDA basis. Moreover, adjusting cash per share of
Rs104, the valuation looks more reasonable. Sharekhan believe that on the back of the strong financials and being the largest player, MOIL is a good long term bet.

Download now or preview on posterous
MOIL-IPO-241110.pdf (285 KB)

Mobile Number Portability – How to change your mobile service operator without changing your number?

Mobile-phone-keypad-taiwan

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Mobile Number Portability (which allows subscribers to retain their existing mobile telephone numbers when they switch from one operator to another) will start today in Haryana and very soon in all through out India. So MNP is real. Then what are all the processes involved in changing the operator.

  1. If you are a post paid customer, do clear all your out standing mobile bill with your existing operator. In the case of pre-paid subscriber, do aware the fact that any balance amount left will not be carried forward when the number is transferred to the new service provider.
  2. Send an SMS (PORT<space>Mobile Number) Eg. ( PORT 999999999) from the number you wish to port, to number 1900. You will receive a Unique Porting Code (UPC) by SMS from your current service provider.
  3. Then apply in the prescribed application form to the chosen new service provider quoting the UPC which will act as a reference while filling up the application form with the new service provider.
  4. Porting normally be completed within seven working days. TRAI has fixed a ceiling of Rs 19 on porting charges which the new service provider may collect from the subscriber.
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Claris Lifesciences Ltd - IPO - Subscribe Says Nirmal Bang

Issue Price Rs. 278 - 293
Bidding Date 24 Nov’10 – 26 Nov’10
Outlook & Valuation
Nirmal Bang believe that the company has slected a niche opportunity for itself and has proven its credentials in it. It has 1100 global registrations and is one of the leading players in injectibles segment in emerging markets. It is trying to foray in regulated markets which hold 90% of global injectibke market. We believe that despite some hiccups (USFDA regulatory issue) Claris Lifesciences holds a promising future. Further deal with Pfizer boosts the confidence in company’s strong product pipeline. Given the high growth market, high margin-low competion scenario and company’s focus on profitbalilty than scale, Nirmal Bang is positive on the company’s outlook.

IPO Note: Manganese Ore India Ltd (MOIL) – Subscribe says India Infoline

Download now or preview on posterous
MOIL_241110.pdf (144 KB)

India Infoline recommends subscribing of MOIL IPO.

IPO Note: Manganese Ore India Ltd (MOIL) – Subscribe

Price band Rs340-375

 

MOIL has over four decades of experience in manganese ore mining operations. It enjoys a near monopoly with a dominant 50% share in the domestic manganese production and is also one of the lowest cost producers of manganese ore in the world. MOIL was conferred with ‘Mini Ratna’ status by Government of India in FY08. A debt-free company, it has a healthy balance sheet with strong cash flows. As on H1 FY11, its cash balance stood at Rs17.6bn, which translates into Rs105 per share. It has witnessed revenue and PAT CAGR of 31% and 42% respectively, over the last four years. Presently, it is enjoying OPM of 70.3% and PAT margin of 52.1%. We recommend investors to ‘SUBSCRIBE’ the issue.

 


Warren Buffett's HISTORY !!!!!!!!!!!!!!!!!!

One email received which I think worth sharing

-





 "I always knew I was going to be rich. I don't think I ever doubted it for a minute"

Warren Buffett
  
  
  
     
  
  
  
 
  

       

  
  

    

  
   
  

  






Facebook email invitation

Facebook started rolling out new messages which includes email. Features include
  • Faster interaction: If you want, you can send messages just by hitting your Enter key, so the new Messages is as fast (and as informal) as an in-person conversation.
  • Integrated communication: No matter what you’re using to communicate (Facebook, mobile or email), your conversation streams quickly and seamlessly into one place.
  • Smart filtering: You’ll always see what’s important to you first – messages from the people you’re close to take precedence over mailing lists.
  • Revamped search: Search for either the person you were talking with or what you were talking about to quickly find your message and all the related context.
  • Adding people to group conversations: Loop new people into the conversation, giving them full access to everything that’s been said so far.
  • Forwarding: Pass individual messages along to other friends.
  • Unsubscribing, or removing yourself from a conversation: Leave a group conversation when you no longer wish to receive new messages.
  • Sending attachments: In addition to sending links, photos and videos, you can now attach external files to your messages.

To get your invitation , please visit this link

http://www.facebook.com/about/messages/

Govt to roll out Mobile Number Portability on 25 Nov in Hariyana

Mobile phone evolution

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Mobile number portability (MNP), the power to change your mobile service provider without losing your number will be reality in less than a week.

The Government will launch MNP on November 25. The service starts in the Haryana circle, but a country wide roll-out is expected by mid-January. This will give dissatisfied consumers an opportunity to change their service provider without losing the current mobile number. Migration will be fairly simple, with just a sms to 1900 and will be effective within 48 hours.

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Power Grid Corp FPO : Check your Allotment Status

National Stock Exchange of India

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Power Grid Corp FPO was open on 9th Nov 2010 and get closed on 12th Nov 2010. The price band for the issue was Rs 85 at lower level and Rs 90 at upper level. The shares are issued at Rs 90 (for retail investors and for employees  it is Rs.85.50), the upper level of the price band.

You can check your allotment status @ Karvy website

http://mis.karvycomputershare.com/ipo/ 

Newly allotted shares would start trade from Nov. 26th in both BSE and NSE.

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Tata Chemicals launches customized fertilizer

Wordmark of Tata Chemicals

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Tata Chemicals Ltd (TCL), launched the ‘Paras Farmoola', the country's first ever customized fertilizer product specifically targeted at farmers in western-central Uttar Pradesh (UP). For manufacturing the customized fertilizers, TCL has set up an Rs 60-crore 130,000 tonnes per annum facility at its existing urea unit at Babrala in UP, with technology sourced from A.J. Sackett of the US. The company intends to establish two more plants, involving a total outlay of Rs 110 crore, in West Bengal and UP.

Wheat farmers now apply one 50 kg bag of di-ammonium phosphate (DAP) costing around Rs 500, half-a-bag of muriate of potash (MOP) costing Rs 130 and 10 kg of zinc sulphate (ZnS) costing Rs 400 on every acre at the time of sowing. Besides, they use two bags of urea (Rs 265 each) while irrigating the standing crop. The total cost of fertilizers comes to roughly Rs 1,560 an acre, against which they obtain an average yield of 12 quintals.

With the customized fertilizer, the farmer can do away with DAP, MOP or ZnS and, instead, just apply four bags of ‘Paras Farmoola' (costing Rs 600 each) as a basal dose, followed by the usual two bags of urea. The total fertilizer cost here works out higher (at Rs 2,930). But then, the farmer will get 22 quintals an acre, with this additional 10 quintals worth over Rs 11,000 claimed by the company.

Source : News Reports

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Honda unhappy with Hero’s offer, makes offer for counter buyout

Hero Honda Splendor

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Japanese auto and bike manufacturer, unhappy with Hero's offer, has reportedly made an offer to buy Hero's 26% stake in Hero Honda. As per news reports earlier, Hero had made an offer to buy out a part of Honda's stake in the venture.

Munjals of Hero are reportedly asking for 40% discount to current market price, while Honda is expecting the valuation close to current market price. Honda's counter offer of buying out Hero's stake is being seen as a negotiating tactic to get the price possible from Hero for Honda's stake in the joint venture. Honda and the Hero group hold 26 per cent each in Hero Honda. Sources say that negotiations on the deal will take place in Bangkok this year.

Hero Honda reported its highest ever monthly sales at 5,05,553 units in October, registering a jump of 42.75 per cent over the same month last year. Honda wants to increase its royalty from the sales of the joint venture but has been unable to do so because bulk of the sales, about 60%, is contributed by Splendor and Passion, two old bikes. Honda also wants the Hero group to route all spare part purchases through Honda Motorcycles and Scooters India, (HMSI), which the Hero group has been resisting for a long time.

Source : News Reports

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