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Sunday, February 05, 2012
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Price Revision : October 16, 2009
Recovering economy : Boon or Bane?
Thanks to the global recession and the consequent decline in the commodity prices (eg. LME price of aluminium ingots), TechNova was able to reduce the end-user prices of PS Plates by Rs. 57.47 / sq.mtr. during the period Oct ’08 to Sep ’09.
Sadly, the benefits of recession are now fast eroding. From a low of US$ 1,359 / ton in Jan – Mar ’09, the LME price of aluminium ingots crept up to US$ 1,491 / ton by Apr – Jun ’09 and climbed further to US$ 1,806 / ton in Jul – Sept ’09. During the same period, the Indian Rupee marginally appreciated from Rs. 49.76 / US$ in Jan – Mar ’09 to Rs. 48.67 / US$ in Apr – Jun ’09. In the quarter ending Sep ’09, the Indian Rupee remained more or less at the same rate, averaging at
Rs. 48.42 against the US$. Graph 1 below, depicts the trend of the LME Price of Aluminium, as well as the Indian Rupee against the US$ in the past one year.
AIFMP – TechNova MoU
As you are aware, since Jan ’08, prices of TechNova’s PS plates are regulated by the AIFMP – TechNova MoU. The key factor that drives the price revision of PS Plates is the Rupee LME price of aluminium ingots; other factors being, the cost of converting aluminium ingots into litho-grade aluminium coils and the cost of other major direct inputs such as power and packaging materials. Prices of the PS plates are revised and effected on the 16th of the first month of every quarter, after approval from the AIFMP MoU Committee.
Price Revision for Oct – Dec ’09
Based on the increase in the Quarterly Average price of aluminium on the LME from US$ 1,491 / ton in Apr – Jun ’09 to US$ 1,806 / ton in Jul – Sept ’09, as well as the slight fluctuation in the INR / US$ Exchange Rate, the cost of aluminium has effectively increased by Rs. 15.88 / kg. Applying the standard conversion formula of 0.9 kg consumption for every 1 sq.mtr. of PS Plates, TechNova’s basic prices of PS Plates have increased by Rs. 14.30 / sq.mtr. Taking into consideration Excise Duty, Freight & Insurance, CST and Channel Margins, this increase translates to an overall increase of Rs. 19.40 in the end-user price of PS plates.
However, based on a special request made by the President of the AIFMP, Mr. P Chander, TechNova has agreed NOT to pass on the full cost increase during this quarter. Of the total increase of Rs. 14.30 / sq.mtr. in TechNova’s basic price, only Rs. 10 / sq.mtr. is being passed on in the current Price Revision. The balance of Rs. 4.30 / sq.mtr. in TechNova’s basic price, which is being held back in this quarter, will be passed on in the Price Revision, effective January 16, 2010. Moreover, in addition to absorbing Rs. 4.30 / sq.mtr. in this quarter, as mentioned above, TechNova has also agreed NOT to pass on the increase in other Direct Input costs, which will be factored in the next Price Revision.
Hence, the increase of Rs. 10 / sq.mtr. in our basic price translates to an increase of Rs. 13.58 / sq.mtr. in the end-user prices of TechNova’s PS plates and this is reflected in our Price Revision w.e.f October 16, 2009. For the detailed size-wise pricing you can contact your local dealer, TechNova office or representative.
Cost Saving Solution
As before, you will continue to receive attractive cash discounts on the prices mentioned in the Price-List from your dealer, on making cash payments for your purchases. These discounts would be significantly higher than the interest cost on the additional working capital that you may require to switch over from credit to cash purchases.
In Conclusion
We sincerely hope that the LME either declines or remains the same during this quarter, so that the Price Revision for the next quarter is not an unpleasant one.
Once again, I would like to reassure you that we remain committed providing you with world-class products, backed by unmatched service. Finally, we thank you for your understanding and seek your support in the future.
With best regards,
C. G. Ramakrishnan
Executive Director & Chief Operating Officer
P.S : A copy of the detailed Plates Price Revision Communication has been couriered to our customers. If you do not receive the Price Revision booklet within the next one week, please contact your local TechNova office, representative or dealer. Or you can also send us an email at help@technovaindia.com and request for a copy of the Price Revision Communication.
If you have any suggestions to offer or should you require any further clarifications or information about our products & services, please contact :
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Contact Details
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Corporate Office
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TechNova Imaging Systems (P) Limited
Laxmi Mills Estate, Off Dr. E. Moses Road
Mahalaxmi, Mumbai 400 011, India
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+91 (0)22 2741 2463 |
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+91 (0)22 2741 0261 |
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corp@technovaworld.com |
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www.technovaworld.com |
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