Hi,
Kindly find below Mr. Yash Birla, Chairman, The Yash Birla Group post budget reaction.
BUDGET REACTIONS FROM MR. YASH BIRLA, CHAIRMAN, THE YASH BIRLA GROUP 
The Budget 2009-10 is all about getting the India Growth story back on track. This is targeted to be achieved through the short and long term measures that have been introduced. The unique aspect of focus on efficacy of delivery mechanisms for various measures is heartening.
Due importance to infrastructure has been rightfully given as well as a boost to exports which will stimulate the sector that has been languishing.
The disinvestment announcement is welcome but the targeted amount could have been higher which would have freed up resources to invest in the various social schemes that have been announced.
This is in short a budget that aims to jumpstart a economy that has slowed down which is good but it could have been more aggressive.
For our Group, the positive measures announced for Education, Textiles, IT, Exports are welcome and would give a fillip to our group companies in this sphere.
Kindly find below post budget quote of Mr. M. S. Arora, CEO, Zenith Birla, flagship company of Yash Birla Group.
Mr. M.S. ARORA, CEO, ZENITH BIRLA: It is good to note that the Excise duty rates on Steel related products have not been increased from present 8.24% it will help in demand to grow in the country under these trying times.
However no change in the policy, on Restriction to be removed on Flat Steel import is a negative aspect as this will create & increase the imbalance in the prices of steel in the domestic market.
Removal of FBT is a welcome step which will help eliminating the cumbersome procedure to keep a track of figures under this head.
No initiative to boost Exports to steel product related industries is a cause of worry and hope that the forthcoming Exim policy will take steps to help the declining figures of exports.
Kindly find below Mr. S.C Agarwal’s, CEO, Indian Tools Manufacturing, part of Birla auto and engineering group post –budget reactions on Auto sector.
MR. S.C. AGARWAL, CEO, ITM : The Budget appears to be neutral to Cutting Tool Industry. Due to increases in Planned Expenditure, allocation for rural employment and additional disposable income on account of individual Income Tax benefit, consumption level can be sustained in the short term. Private capital investment in the Industry may not get stimulated soon until Engineering Goods Export and Commercial Vehicle Sales improve.
Please find below Mr. Raju Todi’s quote for post budget
MR. RAJU TODI, CEO, BIRLA ELECTRICALS:
Major Implication of Budget on BEL / BIPL
1) No change in Excise, Custom duty - company not affected.
2) MAT increased from 10 - 15% and maximum period for availing credit extended from 7 years to 10 years - No impact on Compay.
3) FBT abolished - will save Rs.2.00 lacs approx. in both the company.
Beside the above, individuals I. Tax exemption limit raised / surcharge abolished.
Kindly find below Mr. Kalyan Bhattacharya, President& CEO, Birla Power Solutions Ltd. post budget quote on Power.
Response to Budget 2009-10
The increased budget allocation on social development schemes with focus on health and education for the rural population is indeed a right step for the ‘inclusive growth’ highlighted in the pre-budget survey.
The areas which will allow BPSL to increase its contribution towards national development are:
- National Rural Health Mission
- Mission in Education through ICT’
- Construction of Roads/Infrastructure
- Public Delivery Services
The increased allocation of funds for Agricultural Development and Irrigation, is a welcome move, though there is no ‘special incentive’ for companies like BPSL which is producing Power Tillers and fuel efficient Pumps for the marginal farmers in less developed states in the East and Northeast.
The budget mentions about the Power Reform Program. However, it is unclear about the incentives available for private sector to join the PPP for investment in power generation and expansion of the distribution system in the rural areas.
The budget is not encouraging for the manufacturing sector. No new initiatives are visible and there is hardly any incentive in terms of tax and duty benefits for the organized sector in the engineering industry.
Overall, the budget is an average one and does not fulfill the expectation of a key driver for industrial development.
Warm Regards,
Anuja Shah
Blue Lotus Communications Pvt. Ltd.
4/33 Kamal Mansion,
4th Floor, Haji Niyaz Ahmed Azmi Marg,
Arthur Bunder Road, Colaba,
Mumbai 400 005.
Tel # 66522890-899 (D) # 66522820
(M) # 98206 17685
Email: anuja@bluelotuspr.com
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