Auto stocks have opened the day on a weak note with Bajaj Auto, Ashok Leyland and Mahindra & Mahindra (M&M) leading the losses. Leading passenger carmaker Maruti Suzuki is planning to roll out a global car by 2017 and will use the new Research & Development (R&D) facility at Rohtak to develop the car. The company also plans to take help from its parent company Suzuki Motor Corporation (SMC). Through the global car, Maruti seeks to target the Japanese and European markets. The company plans to incur a capital expenditure of up to Rs 15 bn to set up the R&D centre at Rohtak. So far, the company has been depending on SMC for its model design and development programme. With the R&D facility at Rohtak, Maruti plans to develop a full model on its own. In a bid to build an R&D hub, Maruti has strengthened its manpower by more than 20%.
Aluminium stocks have opened the day on a mixed note with NALCO trading firm, while Hindalco Industries is facing selling pressure. Aluminium producer NALCO plans to invest about Rs 579 bn on expansion by 2020.
The expansion plan will include the setting up of two large aluminium smelters in India and abroad. The state-owned firm will incur a capex of Rs 165 bn in Indonesia for setting up a 5 m tonnes (MT) smelter along with a 1,250 MW power plant.
A similar smelter would be set up in Western Orissa in two phases with a 1,260 MW power plant. The estimated capex for the same would be around Rs 163 bn. NALCO also plans to build a new alumina refinery of 1.4 MT in Andhra Pradesh and 1,000 MW power project as an independent power producer. Both the projects would require a capex of about Rs 106 bn. The balance amount would be expended on existing projects.
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