Most of the automobile stocks are trading in the red with Hero MotoCorp and Ashok Leyland being the biggest losers whereas Escorts and Force Motors are trading in the green. As per a leading financial daily Hero MotoCorp has signed an agreement with the Andhra Pradesh government for the set up of a manufacturing plant. The two-wheeler manufacturing plant will be set up in the Chittoor district. As per the Memorandum of Understanding, the main plant with a capacity of 1.8 million two wheelers will be set up at Satyaveedu at a cost of Rs 16 bn. The plant will come on-stream in a phased manner. In addition, the company will be investing Rs 15 bn in ancillary units.
Food & tobacco stocks are trading mixed today. Tata Global Beverages is trading higher, while Britannia is trading in the red. As per a leading business daily, ITC is planning to enter into Rs 60 - 70 bn home workship or pooja market with incense products. The market is natural extension to the company's agarbatti business brand Mangaldeep. In a soft launch, the company has brought out packaged sambrani/dhuno, dhoops and combo packs of agarbatti stands, diyas and candles, along with its line of Mangaldeep agarbattis. ITC is also evaluating other associated product categories such as kumkum and haldi. The company considers the market as a big potential area as it has already been operating in the agarbatti space for the last 10 years with a ready supply chain, including supplies to temples, specialty pooja stores and grocery stores. ITC is trading down by 0.4% today.