industry cursor - may 2015 - dnb.co.in · & pharmaceutical source: cso, d ... corporation of...

Issue 81 | May 2015CONTENTS

Strictly for Private Circulation

Highlights

MACROECONOMIC UPDATE

Logistics & Supply Chain

Commercial Vehicle

Gems & Jewellery

Hi-Tech

Banking

Hospitality

IT-Hardware

Passenger Vehicle

Textile & Garment

Steel

Retail

Two and Three-Wheeler

2

4

5

7

6

8

3

9

10

11

15

14

13

12

Macroeconomic Update

Auto Components

n The Index of Industrial Production moderated to 2.1% (y-o-y) in Mar-15 as against a growth of around 5.0% (y-o-y) during Feb-15.

n The manufacturing sector rose by 2.2% (y-o-y) during Mar-15 against a decline of 1.3% (y-o-y) in Mar-14, whereas the mining and electricity sectors registered a moderate growth of around 1.0% and 2.0% respectively in Mar-15.

n The aggregate deposit and bank credit grew by 12.3% (y-o-y) and 10.5% (y-o-y) respectively for the week ended May 1, 2015 as against a growth of 14.2% and 13.4% in the year-ago period.

n The WPI inflation during Apr-15 declined for the sixth consecutive month to 2.7% against a decline of 2.3% in Mar-15.

n Inflation in manufactured products declined by 0.5% (y-o-y) in Apr-15 as compared to a growth of 3.7% (y-o-y) during Apr-14.

n Retail inflation in rural and urban sector under the new base (2012) grew by 5.4% (y-o-y) and 4.4% (y-o-y) respectively during Apr-15.

n FDI equity inflows grew by 39.0% (y-o-y) to US$ 28.8 billion during Apr-Feb FY15 compared to inflows of US$ 20.8 billion during the corresponding period last year.

n FIIs invested around US$ 1.9 billion in equity during Apr-15 as against US$ 1.6 billion in the same month a year ago.

Healthcare & Pharmaceutical

Source: CSO, D&B

IIP and core infrastructure: Growth (%)GDP: Growth (%)

Source: Ministry of Commerce & Industry, CSO

Macroeconomic triad (estimate)

Note: Exchange rate: INR/US$ at month endInflation considered here is WPIInterest rate corresponds to yield on T-Bills 15-91 daysSource: D&B

Source: Ministry of Commerce and Industry

May-15

India's exports & imports (US$ bn)

Inflation(-2.6)-(-2.8)

Interest rate7.6-7.8%

Exchange rate63.40-63.60

cursorIndustry

Exports Imports

Eight core industries IIPAgriculture Industry Service GDP at factor cost

-2

0

2

4

6

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16

Q1 FY14 Q2 FY14 Q3 FY14 Q1 FY15 Q2 FY15 Q3 FY15-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Mar-

14

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

25.0

30.0

35.0

40.0

45.0

50.0

15.0

20.0

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35.0

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4

Mar-

14

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct-

14

Nov-1

4

Dec-1

4

Jan-1

5

Feb-1

5

AUTO COMPONENTS INDUSTRY

n Several acquisitions were announced during the month. These are elucidated below:p Amtek Auto entered into a share purchase agreement with Asahi Tec

Corporation of Japan to acquire its various group companies, which are engaged in the business of iron casting, forging and machining and have manufacturing facilities located in Japan, Thailand and China.

p US-based Vehicle Access Systems Technology acquired 50% stake in Minda Corporations' venture manufacturing vehicle keys and access systems. French auto parts manufacturer Valeo had exited the joint venture by selling its stake to the Minda Group.

p Elgi Rubber Co Ltd acquired US retreading equipment manufacturer American Equipment Manufacturing Inc.

p Coimbatore-based auto parts manufacturer Pricol Limited acquired 50% stake in Johnson Controls Pricol Private Limited for $ 31.5 million. Johnson Controls Enterprises Ltd UK has exited from the JV.

p Auto parts manufacturer Suprajit Engineering intends to acquire 51% stake in Phoenix Lamps for about ̀ 1.25 billion and plans to make an open offer to acquire an additional 26%.

n Several auto components manufacturers announced investment plans. The details are mentioned below:p Amara Raja Batteries Ltd plans to expand its two-wheeler battery

capacity to over 22 million per annum in the next two years, from 11 million presently.

p Apollo Tyres plans to invest ̀ 15 billion to expand its truck-bus radial tyres capacity at its plant in Chennai to 9,000 units a day.

p Stanadyne, manufacturers of diesel and gasoline fuel injection systems for off-road and on-road engine applications, plans to invest about ̀ one billion in its Chennai plant for its proposal to launch high-technology fuel injection systems. The company plans to introduce a new fuel injection system for under 50 HP engine market in 2016.

n Hitachi Automotive Systems India, part of the Hitachi Group, set up an auto parts manufacturing facility with an investment of ` 3.13 billion in order to cater to domestic and overseas markets. It will manufacture valve timing control systems and ignition coils at the facility in Kancheepuram district.

n Auto components manufacturer JBM Group announced its entry into the solar energy sector with plans to invest ̀ 16 billion over the next three years and have a combined capacity of 300 MW under a newly formed entity JBM Solar (P) Ltd.

Steel prices (Mumbai) (`/tonne)

Rubber prices* (Kottayam)(`/quintal)

*Rss-4 CMIESource for all above charts:

Highlights

HR coils 2.00 mm CR coils 0.63 mm

40000

42000

44000

46000

48000

50000

52000

54000

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

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Oct

-14

Nov-

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Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

10,000

12,000

14,000

16,000

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

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Sep-1

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Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

Auto Components: Key financial indicators (Jan-Mar 2015)

Note: Operating profit: PBDIT net of prior period and extra-ordinary items (P&E); Net profit: PAT net of P&E Source: CMIE

Company Net sales

(` mn)

PBDIT (` mn)Net profit

(` mn)PBDIT margin

(%)PAT margin (%)

M R F Ltd 33,120.3 6,299.5 3,326.2 19.0 10.0

Apollo Tyres Ltd 22,598.5 3,614.7 1,824.2 16.0 8.1

Exide Industries Ltd 16,511.2 2,374.6 1,375.9 14.4 8.3

Motherson Sumi Systems Ltd 12,826.7 2,588.7 1,461.4 20.2 11.3

Jay Bharat Maruti Ltd 3,352.1 229.7 100.2 6.9 2.9

Deposits, credit and growth rates

Note: Call rates for May-15 are up to May 14, 2015 Source for all above charts: RBI

Movement in call money rates (%)

BANKING INDUSTRY

Note: Data for May-15 is as on May 01, 2015

n The RBI announced initiatives to simplify norms for banks seeking to open currency chests. Banks may now approach Regional Offices of the RBI for obtaining security clearance for locations at or close to the international borders or insurgency affected areas.

n The RBI-promoted body National Payments Corporation of India announced a 10% or 5 paise reduction in charges for transactions on its inter-bank ATM network.

n The Regional Rural Banks (RRB) Amendment Bill was passed by the Parliament. The Bill seeks to help RRBs to raise their authorised capital and enables them to raise funds from the capital market.

n The RBI has advised all public sector banks and certain private sector and foreign banks to appoint internal ombudsman to ensure attention in resolving customer complaints and to further boost the quality of customer service.

n The RBI allowed banks to offer higher rates of interest to customers who agree not to prematurely withdraw their high-value fixed deposit.

n Federal Bank entered into a tie-up with LIC of India for implementation of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), the life insurance scheme announced by the Centre for savings bank account holders in the age group of 18-50 years.

n Union Bank of India entered into a tie-up with Star Union Dai-ichi Life Insurance and New India Assurance for offering life and accidental death insurance policies respectively to its account-holders under the central bank schemes.

n Canara Bank entered into an MoA with LIC of India for offering PMJJBY insurance cover and United India Insurance Co Ltd for Pradhan Mantri Suraksha Bima Yojana (PMSBY) insurance cover to its customers.

n State Bank of Hyderabad entered into an MoU with National Insurance Company Limited for offering PMSBY to its account holders.

n Karnataka Bank entered into an MoU with New India Assurance Co Ltd to introduce PMSBY for its customers.

n State Bank of India launched a RuPay platinum debit card in association with National Payment Corporation of India.

n Indian Overseas Bank allocated ̀ three billion for the implementation of CBS platform.

n The RBI imposed a fine of ` 1.5 crore each on Bank of Maharashtra, Dena Bank and OBC for violation of KYC and anti-money laundering norms.

n Yes Bank opened a representative office in Abu Dhabi, UAE. It aims at serving the diaspora population and offers NRE and NRO savings account and deposits, foreign currency fixed deposit and portfolio investment scheme to transact in the Indian secondary market and also its wealth management products.

%` bn

Highlights

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24

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10,000

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FY

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FY

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FY

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FY

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Deposits (LHS) Credit (LHS)

y-o-y growth rates of deposits (RHS)

y-o-y growth rates of credit (RHS)

0

5

10

15

20

25

30

Apr-

14

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14

Jun-1

4

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-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Call money rate- High (%)

Call money rate- Low (%)

Apr-

15

Banking: Key financial indicators (Jan-Mar 2015)

Note: Net Profit: PAT net of prior period and extra-ordinary items (P&E)Source: CMIE

Company Net sales (` mn) Net profit (` mn) PAT margin (%)

H D F C Bank Ltd 130,063.7 28,069.1 18.0

I C I C I Bank Ltd 127,384.7 29,220.0 18.0

Punjab National Bank 116,505.2 -6,315.0 -4.7

Bank Of Baroda 107,619.3 5,983.5 5.0

Axis Bank Ltd 96,970.8 21,805.9 17.6

COMMERCIAL VEHICLE INDUSTRY

n Scania, the Swedish commercial vehicles manufacturer, which invested ` three billion in setting up a bus plant recently near Bengaluru, further plans to increase the capacity and investment in it by more than double over the next five years. It plans to increase the annual installed capacity from 1,000 inter-city buses and coaches presently to 2,500 buses, at an additional investment of ̀ three billion by 2020.

n Tata Motors launched six models from its 'Prima' range of heavy commercial vehicles in Kenya. It has also launched the Prima range in other global markets including UAE and Oman.

n Daimler India Commercial Vehicles Pvt Ltd (DICV), the fully-owned subsidiary of Daimler AG, will inaugurate its bus plant in May. The plant, which has been built with an investment of ` 4.25 billion at Oragadam, near Chennai will manufacture and assemble buses under the Mercedes-Benz and Bharatbenz brands. Recently, DICV along with Mitsubishi Fuso Truck and Bus Corporation, Japan (MFTBC) launched the DICV-made trucks in Trinidad and Tobago.

n Swedish commercial vehicles major Volvo, which has invested around ` 10 billion in India over the last one decade, plans to further expand its business activities in segments like buses, trucks, construction equipment and financial services by investing around ` 5-7 billion in India in the next five years.

n Japanese auto major Isuzu, which is setting up its manufacturing plant at Sri City in Andhra Pradesh, signed a Memorandum of Understanding with the Andhra Pradesh Government recently to facilitate investment by its suppliers in the state under the Automobile and Auto Component Policy 2015-20. Seven auto component companies nominated by Isuzu Motors India also signed MoUs with the state government.

Highlights

Commercial Vehicle Sales (Nos.)

Source: CMIE

Commercial vehicles: Key financial indicators (Jan-Mar 2015)

Note: Operating profit: PBDIT net of prior period and extraordinary items (P&E) & Other income; Net profit: PAT net of P&ESource: CMIE

Segments Apr-14 Apr-15 y-o-y growth (%) Apr-Mar FY14 Apr-Mar FY15 y-o-y growth (%)

M&HCV 15,429 19,277 24.9 200,618 232,755 16.0

LCV 27,651 26,595 -3.8 432,233 382,206 -11.6

Total domestic sales

43,080 45,872 6.5 632,851 614,961 -2.8

Exports 5,747 6,889 19.9 77,050 85,782 11.3

Total sales 48,827 52,761 8.1 709,901 700,743 -1.3

M&HCV: Domestic sales (Nos.)

Source for all above charts: CMIE

LCV: Domestic sales (Nos.)

15,000

20,000

25,000

30,000

Ap

r-14

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-14

Dec

-14

Jan

-15

Feb

-15

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-15

Ap

r-15

20,000

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30,000

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Ap

r-14

May

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Jun

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14

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4

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Oct

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No

v-14

Dec

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Jan

-15

Feb

-15

Mar

-15

Ap

r-15

Company Net sales (` mn)

Operating profi t (` mn)

Net profi t (` mn)

PBDIT margin (%)

PAT margin (%)

Ashok Leyland Ltd 45,057.0 4,570.8 2,548.1 10.1 5.6

Force Motors Ltd 7,029.4 595.8 485.4 8.5 6.7

S M L Isuzu Ltd 3,215.4 206.6 127.4 6.4 3.9

GEMS AND JEWELLERY INDUSTRY

Gold prices in Mumbai market

Gems & Jewellery exports(` bn)


Gems & Jewellery imports(` bn)

0

50

100

150

200

250

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14

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14

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Aug-1

4

Sep-1

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Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Price (LHS) Change (RHS)

n India’s gold imports increased by 19.5% to US$ 34.32 billion in FY15.n According to the Minister of State for Steel and Mines, India's gold

production from Hutti Gold Mines Co in Karnataka and Manmohan Industries in Jharkhand declined by 8% to 1.43 tonnes in FY15.

n The Government of Maharashtra announced its decision to set up a jewellery and knowledge smart city in the state to promote the growth of the gems and jewellery sector. The project is also expected to have training institute, research centre, exhibition and convention centre, residences for employees, hostel, schools and hospitals.

n Anjali Jewellers, a leading jewellery brand of Kolkata recently launched a mobile application for apple i-phones and android phones for selling jewellery through the mobile phone platform and has also tied up with e-tailers like Flipkart and Amazon.

n Kalyan Jewellers recently launched a showroom in Chennai with an investment of around ` two billion. The flagship showroom is spread across 40,000 sq ft and will display around 600 kg of jewellery.

n Kalyan Jewellers plans to open four more showrooms in Chromepet, Adyar, Velacherry and Anna Nagar at an additional investment of ` three billion. Two of these will be launched during the current financial year and two in the early part of next year.

n Lalithaa Jewellery opened the eighth outlet of its retail chain in Coimbatore at a cost of ̀ 1.75 billion and plans to expand in Tirupati and Visakhapatnam by the end of the current year.

n The Board of Directors of Rajesh Exports, which sells its products through its retail brand Shubh Jewellery, accorded approval to form a subsidiary in Europe to sell jewellery in Europe.

n Prince Jewellery plans to expand by setting up one more store in Chennai and Bengaluru with a proposed investment of over ̀ two billion.

Highlights

-20

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24,000

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4

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Oct

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Nov-

14

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5

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5

Mar-

15

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`/10 gm %

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14

Jan-1

5

Feb-1

5

Mar-

15

Gems & Jewellery: Key financial indicators (Jan-Mar 2015)


Titan Company Ltd 24,961.9 2,701.1 2,150.9 10.8 8.6

Tribhovandas Bhimji Zaveri Ltd 4,630.1 249.3 78.2 5.4 1.7

Company Net sales (` bn)

Operating profi t (` bn)

Net profi t (` bn)

PBDIT margin (%)

PAT margin (%)

HEALTHCARE & PHARMACEUTICAL INDUSTRY

n Biocon Ltd and Mylan's drug discovery programme including two molecules namely Pegfilgrastim (PEG-G-CSF) and Adalimumab for treating cancer and arthritis have entered global Phase 3 of clinical trials. Also, the phase 3 global clinical trial for Trastuzumab, aimed at treating breast cancer, is progressing in over 100 sites around the world.

n Torrent Pharmaceuticals signed a share purchase agreement to acquire 100% stake in Zyg Pharma Pvt Ltd, a company engaged in manufacturing various dermatological formulations like creams, ointments, gels, lotions and solutions. The acquisition will help the company to strengthen its position in niche dermatological segment, especially in developed markets like the US and Europe.

n Fortis Healthcare's Singapore arm, Fortis Healthcare International completed 100% stake sale in RadLink - Asia and its subsidiaries for ` 5,300 million to Fullerton Healthcare Group.

n Mylan NV's subsidiary, Mylan Pharmaceuticals launched Sofosbuvir 400 mg tablets, a drug used for the treatment of chronic hepatitis-C infection in the country.

n Wockhardt recalled 13 drugs in the US manufactured at its two units at Chikalthana and Waluj in Maharashtra, which were under import restrictions from the USFDA.

n Suven Life Sciences received five product patents for its drug in Europe, Hong Kong, Israel, Australia and Norway for the treatment of disorders associated with neuro-degenerative diseases such as Alzheimer's disease, Attention deficient hyperactivity disorder, Huntington's disease, Parkinson and Schizophrenia.

n Janssen, the pharmaceutical division of Johnson & Johnson launched Invokana, a new diabetes treatment drug in India.

n Zydus Cadila's R&D subsidiary Etna Biotech collaborated with US-based National Institute of Allergy and Infectious Diseases (NIAD), a part of US National Institutes of Health to develop a vaccine against visceral leishmaniasis known as Kala-Azar in India.

n Sun Pharmaceutical Industries entered into an exclusive worldwide research and license agreement with Technion-Israel Institute of Technology to develop anti-cancer drugs.

n Apex Medical Corp, a Taiwanese medical equipment maker plans to enter the Indian healthcare market by investing ` one billion to market medical equipment to hospitals and nursing homes. The company plans to launch its products through Apex Medical India in the field of respiratory therapy initially.

Trend in Drugs and Pharmaceuticals export

Trend in Drugs and Pharmaceuticals import

Highlights


Value (LHS) Change (RHS)

` bn %

Value (LHS) Change (RHS)

%

Drugs & Pharmaceuticals: Key financial indicators (Jan-Mar 2015)


Dr. Reddy'S Laboratories Ltd 26,887.2 7,561.0 5,714.2 28.1 20.6

Lupin Ltd 21,654.2 5,357.2 4,077.0 24.7 18.6

Piramal Enterprises Ltd 6,700.2 828.5 301.9 12.4 4.1

Biocon Ltd 5,833.8 1,027.1 696.0 17.6 11.7

Emami Ltd 4,957.4 1,271.5 1,323.4 25.7 25.2

Company Net sales

(` bn)Operating profi t

(` bn)Net profi t

(` bn)PBDIT margin

(%)PAT margin

(%)

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5

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15

` bn

HI-TECH INDUSTRY

Civil aviation: Cargo statistics(freight tonne km and mail tonne km in mn)

Civil aviation: Load factor (%)

n The Government has granted in-principle approval for building 15 greenfield airports to handle the increasing air traffic in the country. This includes Mopa in Goa, Navi Mumbai, Shirdi and Sindhudurg in Maharashtra, Bijapur, Gulbarga, Hasan and Shimoga in Karnataka.

n Seaplane operator Mehair, which recently launched its first intra-state flight services in Gujarat, plans to expand its operations to Rajasthan and Maharashtra.

n With an aim to facilitate faster movement of shipments in a time-bound manner, Jet Airways launched an express cargo service on its domestic network.

n Starting October, Singapore Airlines plans to introduce a premium economy class category in its Airbus A380 aircraft on flights between Singapore and Mumbai and Delhi. The premium economy class fare will be 20-25% more than the economy class fare.

n Consumer durables major Videocon plans to more than double its market share in the air conditioner segment by 2017. It intends to increase the number of selling points from 3,600 presently to 9,000 by the end of this year.

n Godrej Appliances entered the super-premium segment across refrigerators, ACs, washing machines and microwave ovens with the launch of a new brand 'NXW'. The refrigerators launched will be priced between ̀ 50,000-80,000.

n Philips Lighting India launched two high-end European lighting brands - Luceplan and Modular in India.

Civil aviation: Airport traffic statistics (February 2015)

Source: CMIE


Highlights

Passenger load factor Weight load factor

Parameters

Aircraft traffic Passenger traffic Cargo traffic c

Nos.y-o-y

growth (%)Nos.

y-o-y growth (%)

Tonnesy-o-y

growth (%)

Domestic traffic 97,237 2.4 11,877,000 20.7 76,900 16.0

International traffic 27,170 2.6 4,147,300 8.4 120,500 7.9

Total airport traffic 124,407 2.4 16,024,300 17.2 197,400 10.9

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Freight tonne km (LHS) Mail tonne km (RHS)

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HOSPITALITY INDUSTRY

Foreign tourist arrivals in India('000 nos.)

Foreign exchange earnings

Growth in foreign tourist arrivals (%)

Source: CMIE

Source: Ministry of Tourism

Source: Ministry of Tourism

n Kolkata-headquartered Daiwik Hotels, a chain of full service four-star pilgrim hotels, launched its second property at Shirdi (Maharashtra) and plans to set up 15-17 such hotels across the country within the next one year, with an investment of ̀ 1.8 billion. The company intends to establish 20 such properties over the next five years, which would entail an investment of ` six billion.

n Sterling Holiday Resorts India Ltd plans to invest around ̀ one billion in 2015-16 to set up new resorts, which is likely to be invested to purchase land and to add 8-10 resorts, with around 400-500 rooms.

n Swosti Group announced the launch of a luxury resort at Chilika lake in Odisha at an investment of over ` 0.8 billion, which is expected to become operational by 2016.

n Mid-market hotel chain Lords Hotels and Resorts is investing ̀ 1.25 billion to build a wellness resort in Karnataka's Shimoga district. It plans to open another 25 properties by the end of 2017.

n Abu Dhabi-based French Food Castle, a brand owned by Mondial Foods LLC, announced the launch of its first dining restaurant in Kochi. It plans to open 50 outlets in Kerala within the next two years with an investment of ` 0.75 billion.

n Hello Curry, a Hyderabad-based Indian fast food chain, acquired food delivery startup Paratha Post. Hello Curry also plans to expand its operations across the country for which it is looking to raise ̀ 0.5 billion.

n Burger chain Wendy's plans to open 40-50 stores in India in the next four years at a cost of around ̀ two crore per restaurant, with its first store set to open in Gurgaon in May.

n Malaysian restaurant chain Manhattan Fish Market launched its first outlet in India in Chennai. The specialty casual dining restaurant chain plans to expand the brand to another 10 cities in the country through sub-franchising.

n Neopolitan Pizza, a quick service restaurant with 26 pizza restaurant chains in India, plans to expand with another 35 outlets during 2015-16, and also expand globally by starting its franchise in Dubai and Toronto in May.

n Apeejay Surrendra Park Hotels launched its second property under the mid-scale brand 'Zone by The Park' in Jaipur. It plans to launch three new properties under the same brand in Mahabalipuram (Chennai) and Raipur by the end of 2015.

n Blanket Hospitality Ventures, which currently has six properties in Kerala, Karnataka and Tamil Nadu, plans to have 100 properties under its backpacking hostels brand, Vedanta Wake Up, in the next three years across India.

Highlights

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Foreign exchange earnings (LHS)

Growth (RHS)

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Feb-1

5

Mar-

15

Apr-

15

` bn %

0

2

4

6

8

10

12

14

16

18

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2012 2013 2014 2015

Hospitality: Key financial indicators (Jan-Mar 2015)

Note: Net Profit: PAT net of prior period and extra-ordinary items (P&E)Source: CMIE

Taj G V K Hotels & Resorts Ltd 686.2 -3.7 -0.5

Sterling Holiday Resorts (India) Ltd 404.1 55.9 11.3

Mac Charles (India) Ltd 214.5 56.9 26.5

Benares Hotels Ltd 154.1 39.5 25.2

Advani Hotels & Resorts (India) Ltd 145.4 23.7 16.2

Company Net sales (` mn) Net profi t (` mn) Net profi t margin (%)

Domestic computer hardware& peripheral production (` bn)

IT HARDWARE INDUSTRY

n Japanese printer firm Konica Minolta, through its sales subsidiary Konica Minolta Business Solutions India, acquired the production printing business of Monotech Systems, which was the company's distributor in India.

n SanDisk launched the 200GB SanDisk Ultra microSDXC UHS-I card, premium edition in Mumbai, which it brands as the world's highest capacity microSD card for use in mobile devices.

Source: CMIE

Highlights

2.1

3.0

1.5 1.6 1.51.4

1.5

1.9

1.21.3

2.1

1.3 1.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Feb-1

4

Mar-

14

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

IT-Hardware: Key financial indicators (Jan-Mar 2015)


Moser Baer India Ltd. 1,606.30 -827.1 -163.6 -48.6 -10.2

T V S Electronics Ltd. 718.2 8.6 44.2 1.2 6.2

Smartlink Network Systems Ltd. 148.7 36.9 -77.6 13.7 -52.2


Operating profi t (` mn)

Net profit (` mn)

PBDIT margin (%)

PAT margin (%)

LOGISTICS & SUPPLY CHAIN INDUSTRY

n The Andhra Pradesh Government has proposed to set up 15 cold storages in the three north coastal districts of Srikakulam, Vizianagaram and Visakhapatnam, of which six will come up in Vizianagaram district. These have been planned in mandals which grow large quantities of horticulture crops. The construction of these cold storage units will help farmers preserve fruits, vegetables, fish and poultry products.

n CEVA Logistics, a non-asset based supply chain management company, announced construction of a new 166,000 sq mts 'super site' at Truganina, west of Melbourne, which will be the centerpiece of CEVA's growth plans in Australia and New Zealand. This multi-user facility would further enable the company to offer competitive, multimodal advantage to its customers.

n CMA CGM, a Marseilles-based group, through its logistics arm CMA CGM LOG, acquired 60% stake in logistics operator LCL Logistix, as part of a major drive to expand its forwarding and intermodal operations. The acquisition is expected to see CMA CGM LOG improve its logistics offering and LCL Logistics benefit from its international network.

n Balmer Lawrie & Co Ltd plans to invest around `1.65 billion in building seven temperature-controlled multi-product warehouses. The company will invest ` 0.65 billion in the first phase of setting up three temperature-controlled warehouses - one each in Hyderabad, Rewari (in Haryana) and Patalganga (near Mumbai).

n Future Supply Chain Solutions Limited (FSC), the logistics and supply chain vertical of the Future Group, plans to undertake expansion activities with an investment of around ̀ two billion to strengthen its cold storage warehouse capacity in India. The company plans to add 30,000 to 40,000 pallets in its cold warehouse business in the next two years. Recently, FSC launched a state-of-the-art integrated cold storage warehouse in Mehsana district of Gujarat.

Highlights

Logistics*: Key financial indicators (Jan-Mar 2015)

*Transport logistics services; Note: Net profit is PAT net of prior period and extraordinary itemsSource: CMIE

Blue Dart Express Ltd 5,710.1 347.4 6.0

Gateway Distriparks Ltd 1,114.4 90 8.1

Company Net sales (` mn) Net profi t (` mn) Net profi t margin (%)

PASSENGER VEHICLE INDUSTRY

Utility vehicles: Domestic sales (Nos)

Passenger cars: Domestic sales (Nos)

n Maruti Suzuki India announced investments worth ` 40 billion in FY16 that would be used for improving marketing infrastructure, introducing new products and on R&D. The company also plans to expand its presence in 25,000 villages in addition to the existing 1.25 lakh villages.

n In an attempt to enhance its market position in the luxury car market, BMW announced plans to open 10 more sales outlets in this year, especially in tier II cities. The company's plans for this year also include the launch of four all-new models. The company also increased localisation in its vehicles from the current 20% to 50% in an attempt to counter inflation in the Indian market and improve economies of scale.

n Mercedes-Benz India announced plans to launch C220 CDI at its Chakan factory, with a localisation of 60%. The new C220 CDI Style is priced at ` 37.90-39.90 lakh (ex-showroom, New Delhi).


Highlights

Global News

n Tata Motors rolled out its first Jaguar vehicle, Jaguar XE, from its Solihull factory in West Midlands, England. Traditionally, the factory manufactures the Land Rover brand.

New Launches

Passenger vehicle sales (Nos)

Source: CMIE

D: Diesel, P: Petrol; H: Hybrid

Segments Apr-14 Apr-15y-o-y growth

(%)FY14 FY15

y-o-y growth (%)

Micro 1,027 1,486 44.7 21,129 16,901 -20.0

Mini & Compact 115,914 132,997 14.7 1,544,057 1,602,836 3.8

Super Compact and Mid-size 16,769 23,066 37.6 200,860 233,840 16.4

Executive 1,183 1,777 50.2 18,250 20,372 11.6

Premium 161 222 37.9 2,529 2,063 -18.4

Luxury, Coupe Roadster & Exotics 0 0 - 1 0 -100.0

Vans 18,066 16,617 -8.0 67,075 58,901 -12.2

Passenger cars 153,120 176,165 15.1 1,853,901 1,934,913 4.4

Multi-utility vehicles 37,911 44,945 18.6 161,834 173,741 7.4

Domestic sales 191,031 221,110 15.7 2,015,735 2,108,654 4.6

Exports 39,597 49,816 25.8 560,411 567,614 1.3

Total sales 230,628 270,926 17.5 2,576,146 2,676,268 3.9

Variant Company Price (in ` lakh) Segment

Audi TT (new version) Audi 60.34 Luxury sports

V40 Cross Country Volvo Auto India 27 Premium sedan

Elantra (new) Hyundai Motor India14.13-16.45 (P)14.58-17.94 (D)

Sedan

Camry (updated) Toyota Kirloskar Motor28.80 (P)31.92 (H)

Premium sedan

XC90 Volvo Auto India 64.9 (Momentum) Luxury SUV

Terrano Groove Nissan Motors India 11.45 SUV

0

50,000

100,000

150,000

200,000

250,000

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

0

10,000

20,000

30,000

40,000

50,000

60,000

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

RETAIL INDUSTRY

n The Future Group agreed to merge its retail business with Bharti Retail in an all-stock deal valued at an estimated ` 7.5 billion. The merger is expected to create one of the largest supermarket chains with an estimated turnover of ` 150 billion. The companies have also agreed to merge their respective retail infrastructure businesses into Future Retail.

n In another consolidation move, the Aditya Birla Group merged its retail apparel businesses into a single entity called Aditya Birla Fashion & Retail Limited (ABFRL). The new entity will have a retail network of 1,869 exclusive stores.

n Aditya Birla Retail Limited (ABRL) agreed to acquire Total Superstore, the retail division of Jubilant Agri & Consumer Products in an all-cash deal. As part of the deal, ABRL will acquire the leasehold rights to four Total hypermarkets in Bengaluru.

n India Post Delhi Circle started its e-commerce centre in New Delhi, exclusively dedicated to e-commerce business. The centre has the capacity to handle 30,000 articles per day.

n In an attempt to tackle competition from online players, Crossword Bookstores plans to set up stores in smaller cities such as Bhubaneswar and Patna. The company plans to start 10 new franchisee stores this year. Crossword is relying on offering a better reading experience rather than heavy discounts in order to woo customers.

n Uber, the taxi hailing app; Foodpanda, the online food delivery platform; and ZO Rooms, the budget hotel chain, are collaborating to offer a travel-eat-stay experience to travellers. The partnership would give travellers a free ride up to ` 500 and 50% off coupons on Foodpanda orders. Travellers will also receive 100% cashback upon checking in to any one of the over 150 properties ZO Rooms currently holds in 13 cities.

n Retail chain V-Mart announced investments worth ` two billion for adding about 200 new stores across the country over the next five years.

n Bestseller, the Danish fashion company, announced plans to launch its premium brand Selected in India. Selected is likely to be introduced in the online marketplace. The company currently operates Jack ad Jones, Vero Moda and Only brands in the country.

n Pepperfry, the online furniture retailer announced plans to open 20 showrooms based on its 'Studio Pepperfry' concept across 11 cities in the country by the end of this year.

n In a bid to reach a larger customer base, Toonz Retail India, a retailer of products for children upto the age of 12 years, plans to make a foray into the online retail space. The company currently operates 65 stores in 47 cities.

n Localbanya.com, the online grocer, started operations in Delhi, it being its third city after Pune and Hyderabad. The company plans to start operations in a new city every month.

Highlights

Retail: Key financial indicators (Jan-Mar 2015)

Note: Net profit: PAT net of prior period and extraordinary itemsSource: CMIE

Shoppers Stop Ltd 8,156.9 103.0 1.3

Pantaloons Fashion & Retail Ltd 4,604.0 -637.8 -13.8

V-Mart Retail Ltd 1,706.5 14.1 0.8

Company Net sales (` mn) Net profi t (` mn) PAT margin (%)

Trend in HRC and CRC prices- Mumbai (`/tonne)

STEEL INDUSTRY

n During FY15, India’s steel imports increased by 28% to US$ 16.29 billion while exports grew marginally by 1.3% to US$ 16.24 billion.

n With a steel production of 14.6 MT in Q1 2015, India retained its position as the world's third-largest steel producer after China and Japan.

n In April 2015, India's steel imports increased by 51.6% (y-o-y) to 0.76 MT and exports fell by 15.2% (y-o-y) to 0.38 MT.

n According to the World Steel Association (WSA), global steel use is expected to increase by 0.5% to 1.55 billion tonne (bt) in 2015, compared 0.6% in 2014. The WSA also estimates India’s steel use to increase by 6.2% to 80 million tonne in 2015.

n According to the WSA, world steel output is expected to reach around 2,000 million tonnes by the turn of 2030, growing by 25% from 2014, led by India’s steel output.

n The Odisha Government allowed three more iron ore and manganese mines, two of which are in mineral-rich Keonjhar district while the third in Sundergarh district, to operate according to provisions of the new MMDR (Amendment) Act, 2015.

n The Government plans to set up four steel plants in Jharkhand, Karnataka, Odisha and Chhattisgarh and the Steel Ministry is in the process of facilitating setting up of SPVs for the same mineral-rich states.

n State-run companies Steel Authority of India Limited (SAIL) and National Mineral Development Corporation (NMDC) inked a deal to set up a three million tonne ultra-mega steel plant (UMSP) with an investment of ` 180 billion. The companies also plan to set up two SPVs, one for the project and another for the mining. In the project SPV, SAIL would have equity of 74%, while NMDC would hold remaining 26%.

n SAIL plans to invest around ` 1,500 billion to increase its steel production from 24 million tonnes (MT) to 50MT by 2025.

n SAIL invested ` 160 billion to expand the capacity of IISCO Steel Plant at Burnpur to 2.9 million tonnes per annum from 0.85 million tonnes. This investment will be part of its plan to more than double the overall capacity to 50 million tonnes.

n Tata Steel plans to establish a new research and development hub in the UK focused on low-carbon technology. Tata Steel signed an agreement with the University of Warwick in the UK for the same. Other areas of research include programmes to improve steel production, and research into emerging and breakthrough technologies.

n Jindal Saw, part of the O P Jindal Group entered into a contract worth up to ` 100 billion with JSW Steel from which it purchases raw material.

Finished Steel Production

Highlights

HR Coils (2.00 mm) CR Coils (1 mm)

Source for above charts: CMIE

40,000

42,000

44,000

46,000

48,000

50,000

52,000

54,000

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

-10

-5

0

5

10

15

20

6,000

6,500

7,000

7,500

8,000

8,500

Feb-1

4

Mar-

14

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Production (LHS) Growth (RHS)

'000 Tonnes %

Steel: Key financial indicators (Jan-Mar 2015)


Pennar Industries Ltd 2,342.7 234.2 90.2 10 3.8

Vardhman Special Steels Ltd 1,751.3 96.7 -2.0 5.5 -0.1

Tayo Rolls Ltd 389.3 -108.9 -170.5 -28.0 -43.1

Kamper Concast Ltd 112.1 10.4 11.8 9.3 10.3


Operating profit (` mn)

Net profit(` mn)

PBDIT margin (%)

PAT margin (%)

n Exports of textiles and garments, including jute, coir, handicrafts and handloom items touched US$ 35.29 billion during April-February FY15, registering a growth of a mere 1.7%. Imports of textiles, however, increased by 14.2% at US$ 5.57 billion during the same period.

n The Government relaxed the border trade norms with China recently. For border trade between India and China, the CIF value per consignment is being increased from ` 100,000 to ` 200,000 in case of Nathula, while for Gunji and Namgaya Shipkila, the existing CIF value limit of ` 25,000 is being enhanced to ̀ 100,000.

n The Tamil Nadu Pollution Control Board demolished two textile dyeing factories which were running without license and discharging untreated effluent into the drains in the suburban Poosari Thottam.

n The Board of Chambal Fertilisers and Chemicals approved a proposal to sell the company's textile business to Sutlej Textiles and Industries for a consideration of ̀ 2.32 billion. The company's textile unit Birla Textile Mills is located at Baddi (Himachal Pradesh) and will be sold as a going concern on 'slump sale' basis and on a standalone basis.

n Coimbatore-based KPR Mill plans to invest ` 1.75 billion for setting up a greenfield facility with a capacity of 36 million garments per annum.

n The Aditya Birla Group restructured its retail business by carving out the apparel-making Madura Fashion and Lifestyle division from Aditya Birla Nuvo Ltd and merging it with Pantaloon Fashion and Retail and renaming it as Aditya Birla Fashions & Retail.

n The Cabinet Committee on Economic Affairs approved additional fiscal allocation to reimburse anticipated losses in disposal of cotton procured by Cotton Corporation of India (CCI) and Maharashtra State Cooperative Cotton Growers Marketing Federation Ltd (MSCCGMFL) under the minimum support price (MSP) operations during the cotton season 2014-15. The Committee also approved engaging the MSCCGMFL to undertake MSP operations as a sub-agent of the CCI during the cotton season 2014-15 (October-September).

Fabrics production(Million sq. metres)

Cotton and Synthetic yarn production ('000 tonnes)

TEXTILE & GARMENT INDUSTRY


Highlights

4,400

4,600

4,800

5,000

5,200

5,400

5,600

5,800

Feb-1

4

Mar-

14

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

0

50

100

150

200

250

300

350

400

Feb-1

4

Mar-

14

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Cotton yarn production Synthetic yarn production

Textiles & Garments: Key financial indicators (Jan-Mar 2015)


Aditya Birla Nuvo Ltd 20,712.6 2,300.1 839.1 11.1 4.0

Grasim Industries Ltd 17,331.8 1,291.4 572.1 7.5 3.2

Vardhman Textiles Ltd 14,487.4 2,992.9 902.0 20.7 6.2

Welspun India Ltd 11,120.9 2,636.0 1,346.5 23.7 11.8

S R F Ltd 8,621.5 1,350.9 554.1 15.7 6.3

Company Net sales

(` mn)Operating profit

(` mn)Net profi t (` mn)

PBDIT margin (%)

PAT margin (%)

Three-wheeler: Domestic salesvolume (Nos.)

Two-wheeler: Domestic sales volume (mn)

TWO-WHEELER AND THREE-WHEELER INDUSTRY

Source for above charts: CMIE

Highlights

n Royal Enfield plans to invest ` five billion towards developing new products and increasing the production capacity at its Chennai facility.It is looking at producing 50,000 units a month by the end of 2015, as compared to producing 30,000 units a month as of end-2014.

n Royal Enfield, a subsidiary of Eicher Motors acquired UK-based Harris Performance Products Ltd, a motorcycle design and engineering firm acquiring all its assets, employees, trade names, technical know-how and intellectual property.

n TVS Motor Company launched an upgraded version of its Phoenix edition bike with a refined 125cc ecothrust engine, new tank scoops, a premium 3D logo, bold-body coloured front visor and pillion grab rails. The two-wheeler will also feature a first-time comprehensive white backlit, fully digital speedometer and low battery indicator and is priced at ̀ 51,990 for the drum and ̀ 55,899 for the disc- brake version. The company plans to introduce two new motorcycles this year, including re-launching its popular TVS Victor and a premium bike.

n Yamaha Motor India launched a 125 cc bike Saluto whose engine is based on Yamaha's Blue Core Engine Development ideal delivering a fuel efficiency of 78 km per litre and priced at ̀ 52,000. Yamaha Motor also launched YZF-R1M in Bluish White Metallic 2 colour and priced at ̀ 2.9 million.

n Bajaj Auto expanded its Pulsar range of bikes in the country with the launch of two new models - AS 150 and AS 200 priced at ` 79,000 and ` 91,500 respectively.

n Polaris India, a wholly-owned subsidiary of the US-based off-road vehicle maker Polaris Industries, launched two new bikes, Roadmaster and Chief Dark Horse priced at ̀ 3.5 million and ̀ 2.2 million, respectively.

Two Wheelers & Three Wheelers

Segments

Apr-15 FY15

Vol (Nos) y-o-y growth (%) Vol (Nos) y-o-y growth (%)

Domestic Sales

Two wheelers 1,287,064 -0.2 16,004,581 8.1

Three wheelers 32,666 -2.3 531,927 10.8

Exports

Two wheelers 184,661 -5.3 2,457,597 17.9

Three wheelers 47,548 79.2 407,957 15.4

Source: CMIE

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

0

10000

20000

30000

40000

50000

60000

Apr-

14

May-

14

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-

14

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15


Two & Three Wheelers: Key financial indicators (Jan-Mar 2015)

Company Net sales (` bn) Operating profit (` bn)Net profit

(` bn)PBDIT margin

(%)PAT margin

(%)

Hero Motocorp Ltd 67,938.7 8,383.7 6,315.7 12.3 9.2

T V S Motor Co. Ltd 24,568.5 1,502.3 905.2 6.1 3.7

Eicher Motors Ltd 9,611.6 2,512.0 2,134.5 26.1 20.8

Atul Auto Ltd 1,224.8 149.3 88.7 12.2 7.2

Scooters India Ltd 356.5 42.3 43.8 11.9 11.8

Automotive

Passenger vehicle

Commercial vehicle

2 & 3- wheeler

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