Page 12 - Capex

India's improved monsoon performance, capex augur well: FinMin report

India's improved monsoon performance, continued expansion in manufacturing, and vigorous capital expenditure spending by the public and private sectors augur well for macroeconomic stability and growth during FY24, the finance ministry said in a report. However, it cautioned that cross-border spillovers and adverse global developments can act anytime as a deterrent to achieving the potential high growth path in the current financial year. The government's emphasis on capex in recent years has given a much-needed thrust to investments in key infrastructure, which has resulted in crowding in of private investment to kickstart the virtuous circle of job creation, income, productivity, demand, and exports supported by favourable demographic dividend over the coming years, said the June edition of the Finance Ministry's Monthly Economic Review. As per Axis Bank Business and Economic Research, Capex by the Corporate sector increased by 22.4 per cent in FY23 compared to the last year, driv

Peerless Group to invest Rs 1,000 cr in capex; focuses on hospital, realty

The Peerless Group on Monday announced ambitious plans to invest over Rs 1,000 crore in capital expenditure over the next three years, a major portion of which will be channelled into the development of hospital and real estate projects. In the financial year 2022-23, the Peerless Group reported a revenue of Rs 635 crore from operations. This notable increase of 22 per cent over the previous fiscal's revenue of Rs 520 crore has been seen as a successful outcome of the company's transformation efforts undertaken last year, the company said. "While transformation is a long journey, during the last year, we have seen early results. Before Covid, our annual growth rate of revenue for the entire group used to be around 6 per cent. During FY23, we have been able to shift the growth rate to 22 per cent," said Peerless Chairman Partha Bhattacharyya. Profit before tax during FY'23 was Rs 196 crore against Rs 149 crore achieved in FY'22. The group's flagship Peerless General Finance & ...

Ceat lines up Rs 750 cr capex for FY24, says MD & CEO Arnab Banerjee

Tyre maker CEAT Ltd has lined up a capex of around Rs 750 crore for the ongoing fiscal, mostly to be deployed in increasing production capacity of agri-radial tyres at its Ambernath plant in Maharashtra, according to the company MD & CEO Arnab Banerjee. The company expects volume of its supplies to original equipment manufacturers (OEMs) to pick up in the third and fourth quarter of this fiscal, as it completes transition from smaller rim size to bigger sizes, with approvals from automobile manufacturers expected soon. In the replacement market, where CEAT has seen good growth in the first quarter specially in motorcycle tyres, the company expects the momentum to continue although in the rural market which has been dormant for sometime it may take another two more quarters for growth visibility to come. "We have been talking about Rs 700 crore to Rs 750 crore for the year. Out of which around Rs 220 crore we have done in quarter one," Banerjee told PTI. He was responding to a ...

More capex for states

Higher Central funds for states' capital outlay are welcome, but these should lead to additionality

CII business confidence index rebounds on capital expenditure push

Capex, domestic drivers & financial system to drive growth in FY24: CII

Centre approves Rs 56,000 cr for 16 states for capital investment

Projects approved in sectors such as health, education, irrigation, water supply, power, roads, bridges and railways; Bihar gets lion's share of funds at Rs 9,640 cr, MP gets Rs 7,850 crore

Centre approves Rs 56,415 cr to 16 states as special assistance for capex

The highest amount of assistance totalling Rs 9,640 crore will be given to Bihar

At 23% spend, Andhra Pradesh leads laggards in state capex in FY23

Most large states have fallen behind their budgeted capex targets by a wide margin in FY23, which was pegged at Rs 7.4 lakh crore but could spend only Rs 5.71 lakh crore or 76.2 per cent only, according to an analysis. Only four states -- Karnataka, Sikkim, Arunachal and Bihar -- have over-achieved their targets, while Jharkhand and Madhya Pradesh's capex spending stood at 98 per cent each. Eleven states fared better with 80 per cent target achievements, as per the analysis by Bank of Baroda economists. As against this, in FY21, the underachievement level was a high 72 per cent, primarily due to the pandemic emergency spending, and had improved to 95 per cent in FY22. Surprisingly, none of the 25 states whose data are available has been able to achieve the target by even three-fourths as the peak success rate is only 72.4 per cent, according to the analysis. This is surprising as the Centre had disbursed the required amounts for the year. The poor show was led by Andhra, which cou

Tata Steel plans Rs 16,000 cr capex in FY24 for domestic, global operations

Industry giant Tata Steel is planning a consolidated capital expenditure (capex) of Rs 16,000 crore for its domestic and global operations during the current financial year, according to its top management. Of the planned amount, Tata Steel has earmarked Rs 10,000 crore towards standalone operations and Rs 2,000 crore for its subsidiaries in India, the company's CEO & MD T V Narendran and Executive Director & CFO Koushik Chatterjee said. "The projected capital expenditure (capex) for FY2023-24 is set at Rs 16,000 crore on a consolidated basis which is intended to be financed through internal accruals over the full year," the executives said in the company's annual report for 2022-23. Of this, Rs 10,000 crore has been earmarked towards Tata Steel Standalone operations of which the Kalinganagar project will account for approximately 70 per cent, they said. The company is in process of expanding capacity of its plant at Kalinganagar, in Odisha to 8 MT from 3 MT. "Our other Indian

Patanjali Foods earmarks capex of up to Rs 1,500 cr in 5 yrs: CEO Asthana

Patanjali Foods Ltd plans to invest up to Rs 1,500 crore in the next five years on capital expenditure, mostly for scaling up its palm oil business, according to company CEO Sanjeev Asthana. The company (formerly Ruchi Soya Industries) has set a target of clocking a turnover between Rs 45,000-50,000 crore in the next five years as it expands its product offerings and distribution reach. "Our estimation is over five years, we'll invest about Rs 1,200 crore to Rs 1,500 crore of capital expenditure...Most of the expenditure will happen in year four and five, which is where we are pushing for and the rest in the initial years. We have enough capacity and capex already laid out," Asthana told PTI. He was responding to a query on the company's investment plans in order to meet its growth targets. When asked where the investments will be made, he said, "A large part of it will be on oil palm". On the palm oil plantation, Asthana said, "We have got about 64,000 hectares which are already

Private sector capex will be key contributor to growth: CEA Nageswaran

Chief Economic Advisor V Anantha Nageswaran expressed optimism about India's growth potential on Thursday during a special interactive session organized by FICCI

GM to invest $1 bn in Flint plants to boost heavy-duty truck production

General Motors plans to invest more than USD 1 billion in two Flint, Michigan manufacturing plants for the production of the next-generation internal combustion engine heavy-duty trucks. Gerald Johnson, executive vice president, Global Manufacturing and Sustainability, said Monday that the company will build internal combustion vehicles throughout this decade, in addition to making electric vehicles. GM has a goal of building only electric passenger vehicles in the United States by 2035. The Detroit automaker reported a 38 per cent year-over-year increase in heavy-duty pickup sales last year, with nearly 288,000 trucks sold. GM will invest USD 788 million in the Flint assembly plant, with updates including a body shop building expansion, general assembly conveyor expansion, and new tooling and equipment. The company will invest USD 233 million in the Flint metal center for new stamping dies to support production of its next-generation ICE heavy-duty trucks, as well as press ...

Godrej Group arm to invest Rs 100 cr to acquire material handling equipment

Godrej & Boyce on Tuesday said it will be investing Rs 100 crore over the next three years to acquire material handling equipment. Demand for renting the equipment is high and the capital investments will be by Godrej Rentrust eyeing a share of the same, a statement said. Pegging the overall market at Rs 2,200 crore, the company said it is eyeing business in the auto, engineering, chemicals and pharma, food and beverages, fast-moving consumer goods, logistics, ecommerce and retail sectors. In the January-March period, it received 100 orders from companies for deploying equipment, the statement said. Renting equipment has become a preferred option for businesses seeking managed services and bypassing high upfront costs, the company said, adding that it has grown at over 20 per cent per annum over the last five years.

JSW Steel eyes coking coal assets to beef up raw material security

Target is to have 25% linkages in the next few yrs: Acharya

Mahindra & Mahindra increases capex outlay for FY22-24 to Rs 15,900 cr

Mahindra & Mahindra on Friday said it has revised upward the capital expenditure (capex) outlay for the three years cycle of FY22-FY24 to Rs 15,900 crore from Rs 15,075 crore. An additional Rs 1,600 crore will go into the conventional ICE (Internal Combustion Engine) vehicles for the anticipated regulatory changes and capacity expansion, the company said. Of the Rs 15,900 crore revised capex for FY22-FY24 cycle, an additional Rs 1,600 crore will go into the ICE vehicles for the anticipated regulatory changes and capacity expansion while an additional Rs 1,125 crore for the electric vehicle segment to produce vehicles with changing requirements, the automaker said in a presentation. Another Rs 500 crore has been earmarked for auto and farm investments, said the Mumbai-based company which on Friday reported an 18 per cent jump in its consolidated profit at Rs 2,637 crore in the March 2023 quarter and highest-ever annual profit of Rs 10,282 crore in FY23. The company continued to ...

New phase of capex cycle to start soon, say analysts. Top stocks to bet on

Helped by a property upcycle, analysts at Jefferies believe various government initiatives are likely to drive capex going ahead

General Atlantic to deploy up to $1 bn in new investments in India

The private equity firm manages about $71 billion of assets globally

States used Rs 82K cr of Rs 1 trillion capex support allotted in FY23

The Centre has provided 50-year, interest-free loans to states to augment their capital expenditure requirements in the past three Budgets

Centre to infuse equity in 3 OMCs after they announce capex plans: Report

OMCs, however, are concerned that equity infusion might impact their share price, market valuation and market perception

After debt resolution, Essar Oil lines up Rs 1,200-crore capex

Post implementation of its resolution plan in December 2022, the company has been making debt repayments for the last two quarters ended March 2023