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| Friday, September 03, 2010 You are on : Home >> News >> TechNova News |
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PS Plate Price-Revision : Effective January 16, 2009 PS Plates Price Reduction…Finally ! The New Year has brought with it a mixed bag of gifts, some of which are a welcome change, while others are not as much. As we have explained before in our earlier Price Revision communications, our quarterly pricing structure is directly influenced by two major factors : the prices of Aluminium on the LME and the exchange rate of the USD against the Indian Rupee. As you are well aware, the current financial crisis continues to severely affect the financial markets and both the global as well as Indian economy are truly reeling under the impact of a recession. Since the last 4 months, there has been a silver lining amidst the dark clouds of slowdown in growth all around. All the commodity prices, including Aluminium, have shown a significant downward trend. For the first time in last few years, as the demand for Aluminium and other metals has reduced the world over, the price of Aluminium has shown a continued downward trend for over a period of 4-5 months. As is evident from the graph below, since the last quarter, the average Aluminium ingot prices prevailing on LME have dropped dramatically from levels of USD 2792 in the July-Sep ’08 quarter to USD 1821 in the Oct-Dec ’08 quarter. This has brought some relief to plate manufacturers, as this may signal the beginning of a trend of lower Aluminum prices in the future.  However, while this sharp drop in the price of Aluminium seems like the much needed break we had been so hoping for, the exchange rate of the Indian Rupee against the US Dollar continues to depreciate significantly. The Indian Rupee has continued to drop sharply against the USD, and from an average level of Rs. 43.78 per USD in July-Sep ’08 quarter, it has gone down to an average of Rs. 48.76 to 1 USD in the Oct-Dec ’08 quarter. Please see graph below. This depreciation in the Rupee in one single quarter by Rs. 5/USD has been the sharpest quarterly drop ever in history. This drop in Rupee has neutralised part of the impact of the drop in LME .  The net effect of the above two factors, i.e. average LME & exchange rate, which determines amount of revision in our prices of PS plates for the ensuing quarter has still resulted in a substantial reduction of almost Rs. 34.25 per kg in the Aluminium prices. This translates to a reduction of Rs. 30.80 per sqmtr based on formula of 0.9 kg consumption for every 1 m2 of PS plates. However, as you would recall, in our previous price revision communication dated July 16, 2008 & November 1, 2008 (on our website), we had mentioned that between July 2007 and July 2008, there had been a steep increase in other Direct Input costs including Power, Packaging material, Litho conversion rates, Freight, etc. by almost Rs. 8.00 per sqmtr. Since July, this figure has gone up to Rs. 11.00 per sqmtr. As per our MOU with the AIFMP, it has been agreed that we would pass on the changes in the direct input costs to customers once a year. So far, in the last two years, we have not done the same, as the escalating cost of Aluminium itself was impacting the businesses of our customers to a large extent. In our last communication dated November 1, 2008, we had indicated that we will soon factor the increase of this other direct input costs while arriving at the next price revision. The steep increase in the Aluminium costs in the earlier three quarters ( Huge increase in Jan-June ’08 quarter by Rs. 30.50 per sqmtr and very minor reduction of Rs. 0.70 per sqmtr in July-Sep ’08 quarter) necessitated a cumulative increase of Rs. 29.80 per sqmtr in the base price of our PS plates, in the subsequent 3 quarters. However, our last three price revisions of Rs. 28.00 per sqmtr (cumulative) did not even cover the full cost increase of Aluminium, leave aside the other direct input costs. Given the current turbulent economic situation and the shrinkage in demand, we have been left with no other option but to finally pass on the Rs. 11.00 per sqmtr increase in the direct inputs costs while arriving at this price revision. 2009 Plates at 2006 Prices As a result, taking into account the net impact of the effect of reduced Aluminium prices on one hand and considering the increase in the Direct Input costs on the other, we are reducing the ex-factory prices of all brands of PS Plates by Rs. 18.00 per sqmtr, w.e.f. January 16, 2009. This price reduction is in line with our policy guidelines and the principles outlined in our MOU with AIFMP. This reduction in base prices would translate to a reduction in end user prices by Rs. 24 per sqmtr. Coupled with reduction of excise duty from Dec ’08, the overall reduction in end-user prices of our PS Plate brands would come to Rs. 35-40 per sqmtr as compared to our current prices. Effectively, this will bring our plate prices back to 2006 price levels. We are confident that this will offer you tremendous relief for the future. Lastra Niraj – TechNova Alliance As you may be aware, Lastra Niraj and TechNova have entered into a Marketing Alliance and as a result of the same TechNova is currently offering plates from the Lastra Niraj stable too. Moreover, having examined the requirements of all customer segments, we have carried out an internal process of brand rationalisation of the total Lastra Niraj & TechNova offering. As a result, we shall now offer the following brands of plates from both TechNova and Lastra Niraj, which will together cater to the requirements of all customer segments. Rationalised Plate Brands
* Lastra Niraj Brands Cost Saving Solutions As before, you will continue to receive an attractive cash discount of 5% on the prices mentioned in the Revised Price-list from your dealer, on making cash payments for your purchases. This discount is significantly higher than the interest cost on the additional working capital that you may require to switch over from credit to cash purchase. We shall also continue the popular Companion Scheme, introduced for the free supply of certain high performance chemicals to enable you to enhance your productivity and help reduce your costs. We urge you to contact your TechNova dealer and avail of the benefits of this scheme. In Conclusion We hope that this price reduction in PS Plates would help all our customers in their cost reduction initiatives and help them to be more competitive. We hope and pray that in future too, the bearish trends in the commodities markets continue and the Indian Rupee manages to recover against the US Dollar, allowing us to pass on to our customers the full benefits of the drop in the Aluminium prices on the LME. We are experiencing very turbulent times which has resulted in a drop in consumption of our products in the market. We hope and pray that the demand will get back to normal levels soon. We thank you once again for the understanding and support received by us. We look forward to this continued support to tide over these uncertain times. We remain committed to strive to provide you with world-class products backed by unmatched service. With best regards, C. G. Ramakrishnan Executive Director & Chief Operating Officer If you have any suggestions in our products & services or should you require any further clarifications or information, please contact :
Revised Price list of Moderate Moving Sizes (MMS) for PS Positive Plates of 0.28 mm (Rs. / Plate) Please Select the Brand and Size to View Price. Prices do not include VAT and other local levies like Octroi & Municipal taxes.Note : 1. (*) indicates Non-standard sizes (SMS), the per m2 price will be 3.5% higher than the MMS prices. 2. NA indicates that these sizes are Not Available in that brand. 3. (**) indicates Lastra Niraj brand. 4. Prices do not include VAT, and other local levies like Octroi & Municipal taxes. List of Fast Moving Sizes (FMS) of Taurus Plus, Midas, Futura Excel, Trojan & Gemini Plus Table 02
Note : 1. (  ) indicates FMS size in the corresponding brand.2. (-) indicates non FMS size in the corresponding brand. 3. NA indicates that these sizes are Not Available in that brand. 4. (**) indicates Lastra Niraj brand. 5. FMS Sizes will be reviewed on a quarterly basis. Price decrease Data for TechNova PS Plates (in Rs. / m2) Table 03
TechNova’s customers’ prices / m2 of PS plates at Moderate Movement Sizes (MMS) level are as follows Table 04
The above prices will be applicable for billing from TechNova factories w.e.f. January 16, 2009. All other prevailing terms & conditions will be applicable. Terms and Conditions All sizes in Thrifty, Taurus (0.20 mm), Condor & Argos are considered standard sizes and hence no extra charge will be levied. For Slow Moving Sizes (SMS) that are not included in the detailed price list, the per m2 price will be 3.5% higher than the Moderate Movement Sizes (MMS) prices. For bulk volume orders in Slow Moving Sizes (SMS), TechNova would be pleased to negotiate special prices. The Customer prices given in the price list are inclusive of the following :
Table 05 Companion Scheme : Value of free chemicals available / m2 of plates under Companion Scheme
Table 06 List of High Performance Chemicals available under Companion Scheme
Note : Product group under above companion scheme table will be reviewed without prior intimation. Table 07 Details of Quantity of PS Plates / Pack (according to plate length)
Delivery : Standard sizes as mentioned in the detailed price list should be available off-the-shelf from your local TechNova dealers. For other sizes, a minimum delivery period of 3 to 4 weeks would be required. Size and Thickness Tolerance :
Rejection Procedure & Claims : Claims in respect of damage or shortage should be informed to your TechNova dealer within seven days of receipt of goods by you from the dealer. TechNova applies strictest quality control at every stage of production and packaging to guarantee that our products are free of manufacturing defects. Products which are found defective, as verified by our Technical Sales Executives, would be replaced free of charge. However, our liability is restricted only to the extent of replacement of the products found to contain inherent manufacturing defects, provided the defective products are returned to us in physically undamaged and unused condition. We do not accept any liability or claim arising out of usage of such plates. General : All disputes arising from any dealings between the Customers and TechNova are subject to the jurisdiction of Mumbai High Court. Force Majeure : We shall not be liable for any penalty or liquidated damages for delay in supply arising out of force majeure of causes beyond our control including, but not limited to, inadequate raw material availability, compliance of regulations, order or injunctions of any Federal, State or Municipal Government or Agency thereof, acts of God or of Public Enemy or Government, acts of omissions of the purchaser, acts of Civil or Military authority, fires, floods, epidemics, quarantine, restrictions, strikes, and / or lock-outs, civil commotion, pestilence, factory shutdowns or alterations, embargos, war declared or undeclared, riots or accidents either in contractor’s or sub-contractor’s work, delays in transportation or inability due to any reason beyond our reasonable control. This will also apply for delays as a consequence of hostilities whether direct or indirect and / or happenings which have direct or indirect repercussions on the said job. For such impediments occurring before or after the scheduled time of dispatch or completion, reasonable extension of time shall be granted to us.
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