research on india_automotive and transport sector in india monthly update_april 2013

Automotive and Transport Sector in India

Monthly Update

April 2013

Sector Name – Monthly Update

Top Story Shipping Industry to get 30 port projects in FY2013 The Shipping Ministry plans to award 30 projects with an investment of INR 246.33 bn in FY2013. These projects will add 288.48 mn tonne capacity to the shipping industry. The ministry had shown phenomenal performance in the previous fiscal year which has resulted into setting this target. In FY2012, the ministry awarded 32 Projects with an investment of INR 67.66 bn. These projects were expected to add a capacity of 136.75 mn tonne per annum (MTPA). By 2020, shipping industry is likely to create port capacity of 3,200 MTPA from current capacity of over 1,000 MTPA. Any deficit in ports facilities will affect the country’s trade as well as the competitiveness of its industries as ports are the gateways for export‐import trade. Hence, it is expected that all the major ports will achieve the targets for the current year. New supplier of SUVs to the Indian army – Tata, Mahindra or Nissan Indian army currently owns a fleet of 27,000 Maruti Gypsy vehicles. However, it is evaluating prototypes of Sports Utility Vehicles (SUVs) from other auto majors, such as Tata Motors, Mahindra & Mahindra Limited and Nissan for replacing the old Maruti Gypsy models. After completing the full assessment of the prototypes based on all the technical grounds, Indian army will ask for price quotes from the mentioned players. The models that have been offered include Tata model based on its Safari Storme platform, Mahindra model based on its flagship Scorpio SUV and Nissan model based on its X‐Trail premium SUV platform. Indian army will adopt a phased approach for replacing the Maruti Gypsy models starting from the year 2017. It has plans of investing INR 30 bn for 30,000 4x4 off‐road capable vehicles which fall into 800 kg category, more than the existing 500 kg Maruti Gypsy. Besides, the model should be powered by a minimum 120bhp diesel engine along with being Bharat Stage III and IV compliant.

News Update General FedEx Printo alliance for shipping site program


FedEx Corporation has partnered with Bangalore based print solutions startup Printo. Printo having 12 high street retail locations in Bangalore will aid FedEx to use these retail locations as a shipping site. This partnership will boost the retail footprint of FedEx in India. This alliance will allow customers to print their merchandise at Printo and ship it directly with FedEx. In addition, customers can also use their outlets for all kinds of shipping needs. Owing to a slowdown in its business FedEx is focusing more on domestic logistics operations. Government dissolves shipping corp IRISL JV The 38‐year old shipping joint venture between state‐run Shipping Corporation and Islamic Republic of Iran Shipping Lines (IRISL) has been dissolved by the government.

This decision has resulted as the shipping company was unable to get any business after 2010 UN sanctions on IRISL for aiding Iran's nuclear program. The Shipping Corporation of India had a 49% stake, while the Islamic Republic of Iran Shipping Lines held the remaining 51%. The two companies will split the assets of the company in the ratio of their shareholding.

ChPT to rework bulk cargo terminal plan The Cochin Port Trust (ChPT) plans to rework its bulk cargo terminal plan on quays 8 and 9 of Ernakulam wharf. This independent modification by ChPT has resulted due to the lack of interest among potential private partners called for this project. The terminal plan project involved about INR 2.5 bn investment.

The plan will now focus on developing a 14.5 metre quayside to attract large ships. It wants to establish itself as the only major port in the country to offer such draught for bulk cargo like coal and fertilizer.

MoU for vessel repair in Indian shipping industry The Memorandum of Understanding (MoU) has been signed among Cochin Shipyard Ltd. (CSL), Union Territory of Lakshadweep (UTL) and Lakshadweep Development Corporation Ltd. (LDCL), the three major bodies of Indian shipping industry. The shipping industry witnesses this deal for repairs of ships owned by UTL.

The MoU is expected to ensure uninterrupted availability of the ships of UTL for the service of the islanders. All UTL vessels are presently being operated by LDCL. A tentative schedule for repairs of all their vessels is required to be submitted by November every year to CSL. This shows the approximate schedule and repair duration of vessels in the ensuing year.

Shipping industry gets concession agreement signed between Chidambaranar Port and Transstroy V O Chidambaranar Port, one of the largest economic engines of southern shipping industry has signed a concession agreement with Transstroy ‐ OJSC Consortium. This deal will facilitate the port to develop north cargo Berth‐IV. The port will further construct shallow


draught berth to handle cement and related raw material. The estimated cost of the project to develop north cargo berth‐IV is INR 3.55 bn and shallow draught berth INR 840.8 mn. By implementing various capacity augmentation projects in the inner Harbor, the port aims to raise its capacity from 33.34 MT to 85.73 MT. These projects will cater to bulk cargo needs of hinterland industries. The agreement with a 30 year concession period will aid the shipping industry in implementing the projects through PPP mode on DBFOT basis (Design, Build, Finance, Operate and Transfer). Honda to stop the production of Civic in India Honda Car India has plans of stopping the production of its Civic sedan owing to the declining sales of ~70% to 685 units in FY13 over the previous year. It is not feasible to continue with the production of the Civic model as sales have been steadily falling over the last three years as other models, such as City are more popular among the Indian consumer. Honda has managed to sell only 50,000 units of the Civic model since its launch in 2006.

Honda holds the fifth position, accounting for a share of 3.9% of the total passenger car market in India. The company primarily uses two platforms for developing cars for the Indian automotive market. The Brio platform includes the Brio, the Amaze and the yet to be launched seven‐seater multi‐purpose vehicle (MPV). The Jazz platform consists of the Jazz, the City and the yet to be launched compact sports utility vehicle (SUV) in the Indian automotive market, which has been recently introduced at the Detroit Auto Show. Company has plans of investing INR 25 bn for setting up diesel engine plant, a foundry and a car manufacturing facility with a production capacity of 0.12 mn units in India.

News Update Expansion Plans Kakinada port to invest over INR 6 bn for expansion Kakinada Deep Water Port plans to deepen the entrance channel to 16 metre from the present 14 metre. An amount of INR 6.5 bn will be invested over the next two years. The dredging project will be complete by Dec 2014. This expansion will facilitate the port to allow up to 150,000 DWT (deadweight tonnage) vessels as against current capacity of only 70,000 DWT vessels. Further the port will also be able to increase its cargo handling capacity. In addition, customers, who hire larger vessels, will also be benefited as freight charges would come down. Indian logistics market to get good funding with Tano capital investing INR 800 mn in Shree Shubham Logistics


Shree Shubham Logistics, one of the leading players in Indian logistics market will get funding from private equity fund Tano Capital. Tano will invest INR 800 mn in Shree Shubham which will be used for its capacity expansion. A differentiated and scalable business model in the agri‐logistics space has attracchted Tano Capital to invest in the company. The agri logistics company, Shree Shubham will use this funding for implementing expansion plans in Maharashtra, Rajasthan and Madhya Pradesh. The company is currently operating and managing 90 warehouses with storage capacity of around 1.1 mn tonne. It wants to expand in the Indian logistics market by increasing its capacity to 1.5 mn tonne by 2013 and 2 mn tonne by 2015‐16. Honda launches ‘Dream Neo’ in the Indian automotive market Honda Motorcycle, the second largest two‐wheeler company in the Indian automotive market, has rolled out its new 110 cc motorcycle, called the Dream Neo. It is Honda’s cheapest two wheeler model available in the country, priced at INR 43,150 (ex‐showroom Delhi). It is Honda’s second bike in the Dream series. It offers a mileage of 74 km/litre. It is powered by 110cc, air‐cooled, 4‐stroke engine from the Dream Yuga model, producing 8.25 BHP of raw power at 7500 rpm. It is available in 6 dual tone colors. Additional new features include maintenance‐free battery, high ground clearance of 179 mm, six‐spoke alloy wheels and drum brakes along with an alternate front disc brake on the top end variant. Honda has plans of selling 300,000 units of Neo and overall 800,000 units of two wheelers under its Dream series in FY14. Company is expecting Neo to provide stiff competition to Hero MotoCorp's Splendor, which is the second largest selling bike in India. Besides, company has plans of increasing its sales outlets to ~2,500 by the end of this fiscal.

Industry Expert Speak Shipping Industry to get 30 port projects in FY2013–Mr. G. K. Vasan – Shipping Minister “The achievement of the Ministry during 2012‐13…Has been outstanding… This is the best performance for any year in the history of Major Ports… We have finalized the Action Plan for this year (2013‐14) and a target of 30 Port Development Projects has been fixed.” 30% excise duty on SUVs – Pawan Goenka – President Automotive Sector, M&M "The tax is not only putting an extra burden on the industry but it also is distorting the playing field because certain vehicles in the same price range will bear the 3% extra duty and others will not. Some SUVs are taxed, some are not. It is becoming very arbitrary and is creating a distortion in the industry, which is not desirable. It is being said that because SUVs


run on diesel, they are being taxed extra. If that is the case then one should take the bull by the horn and tax all diesel vehicles."

Automotive : Transactions (Feb 2013 – Apr 2013)

Date Buyer Target Deal Size (INR mn)

% stake

Deal Status Type of

Transaction

25th Apr 2013

Denso Corporation

Pricol Components Limited 51 51% Completed M&A

22nd Apr 2013

Minda Industries Limited

Clarton Horn S.A.U. 474 100% Completed M&A

15th Apr 2013

Technocraft Industries (India) Limited

Swift Engineering Inc.

‐ 100% Completed M&A

12th Apr 2013

Metallurgica Siderforge

s.r.l.

AMW‐MGM Forgings Private

Limited 1600 ‐ Completed M&A

11th Mar 2013

Amtek Auto Limited

Neumayer Tekfor Group

27,170 ‐ Pending M&A

11th Feb 2013

Mahindra Defence Systems Limited

Defence Land Systems India Private Limited

‐ 26% Pending M&A

25th Feb 2013 Wayzata

Ramkrishna Forgings Limited 500 13.35% Pending M&A


Transport: Transactions (Feb 2013 – Apr 2013)

Date Buyer Target Deal Size (INR mn)

% stake Deal Status

Type of Transaction

29th Apr 2013

DTDC Courier & Cargo Ltd.

Nikkos Logistics Pvt. Ltd.

N.A. 70% Completed JV

21st Feb 2013

TVS Logistics Rico Logistics 1,000 85% Completed M&A

5th Feb 2013

Gateway Distriparks

Chandra CFS And Terminal

Operators Private Limited

265 100% Completed M&A

Automotive: Annual Financial Results – Revenue (INR mn)

Companies FY ‘09 FY ‘10 FY ‘11 FY ‘12

Apollo Tyres Limited 49,945.4 81,316.1 88,743.5 121,532.9

Balkrishna Industries Limited 13,998.6 15,637.3 21,920.9 N.A.

Ceat Limited 23,870.1 28,517.8 36,037.5 N.A.

Electrotherm India Limited 16,827.8 20,073.5 24,015.6 N.A.

Falcon Tyres Limited* 6,048.6 8,222.6 9,797.5 N.A.

Indag Rubber Limited 762.789 1,117.105 1,499.396 2,161.262

JK Tyres Limited 39,862.8 45,846.8 59,786.0 69,127.2

Kabirdass Motor Company Limited 26.048 32.05 N.A. N.A.

Kesoram Industries Limited 39,305.6 47,615.3 54,223.6 59,033.8


Mahindra & Mahindra Limited 269,197.6 316,879.2 370,254.4 582,414.0

Modi Rubber Limited* 862.47 4,036.718 660.889 N.A.

MRF Limited 56,924.9 74,750.8 97,645.5 N.A.

Tata Motors Limited 708,809.5 925,192.5 1,231,333.0 1,648,545.2

TVS Srichakra Limited 5,773.5 7,024.7 10,921.6 N.A.

Vamshi Rubber Limited 9.926 19.507 22.505 N.A.

* Change in Financial Year Ending

Annual Financial Results – Income (INR mn)



Balkrishna Industries Limited 744.0 2,190.4 1,946.3 N.A.

Ceat Limited ‐161.1 1,624.8 264.7 N.A.

Electrotherm India Limited 527.9 533.2 89.7 N.A.

Falcon Tyres Limited* 299.7 453.3 154.6 N.A.

Indag Rubber Limited 76.211 115.736 107.525 208.713

JK Tyres Limited ‐1,492.6 2,235.2 659.1 ‐319.9

Kabirdass Motor Company Limited 0.974 ‐6.811 N.A. N.A.

Kesoram Industries Limited 3,787.3 2,373.4 ‐2,102.1 ‐3,797.4



Modi Rubber Limited* 554.057 ‐212.616 364.59 N.A.

MRF Limited 2,507.8 3,575.0 6,187.7 N.A.

Tata Motors Limited ‐25,052.5 25,710.6 92,736.2 135,165.0

TVS Srichakra Limited 89.7 298.2 391.4 N.A.

Vamshi Rubber Limited 492.242 548.011 660.329 N.A.


Quarterly Financial Results – Revenue (INR mn)

Companies OctDec 2011

JanMar 2012

AprJun 2012

JulSep 2012


Balkrishna Industries Limited 7,587.7 N.A, N.A. N.A.

Ceat Limited 10,654.4 N.A. 12,249.7 12,130.26

Electrotherm India Limited 3,189.1 N.A. N.A. N.A.

Falcon Tyres Limited N.A. N.A. N.A. N.A.

Indag Rubber Limited 574.5 565.5 589.0 626.8

JK Tyres Limited 14,229.4 N.A. N.A. N.A.

Kabirdass Motor Company Limited

N.A. N.A. N.A. N.A.

Kesoram Industries Limited 15,529.8 15,669.3 15,041.1 14,161


Modi Rubber Limited N.A. N.A. N.A. N.A.


MRF Limited 28,754.9 N.A. N.A. N.A.

Tata Motors Limited 451,992.9 514,086.1 431,711.3 428,189

TVS Srichakra Limited 3,494.5 N.A. N.A. N.A.

Vamshi Rubber Limited 201 198.8 219.3 218.9

Quarterly Financial Results – Income (INR mn)

Companies OctDec 2011

JanMar 2012

AprJun 2012

JulSep 2012

Apollo Tyres Limited 980.4 1,569.6 1,380.2 1,522

Balkrishna Industries Limited 728.8 N.A. N.A. N.A.

Ceat Limited 23.9 N.A. 290.1 38

Electrotherm India Limited ‐1,323.9 N.A. N.A. N.A.

Falcon Tyres Limited N.A. N.A. N.A. N.A.

Indag Rubber Limited 53.1 65 66.5 58.5

JK Tyres Limited ‐213.1 N.A. N.A. N.A.

Kabirdass Motor Company Limited

N.A. N.A. N.A. N.A.

Kesoram Industries Limited ‐2,756.4 2,288.3 ‐959.6 ‐540.3

Mahindra & Mahindra Limited 8,318 9,505.6 10,263.6 9,780.9

Modi Rubber Limited N.A. N.A. N.A. N.A.

MRF Limited 1,128.9 N.A. N.A. N.A.

Tata Motors Limited 34,055.5 62,340.0 22,449.1 20,747.3


TVS Srichakra Limited 66.4 N.A. N.A. N.A.

Vamshi Rubber Limited 0.350 5.348 2.136 4.767

Transport: Annual Financial Results – Revenue (INR mn)


ABC India Ltd. 1,585.70 1,466.10 2,059.10 N.A.

ABG Shipyard Ltd. 14,130.00 18,124.40 21,369.00 24,238.30

Allcargo Logistics Ltd.* 20,609.30 28,613.40 33,963.00 35,396.40

Aqua Logistics Ltd. 2,134.00 3,220.10 3,808.80 3,683.00

Arshiya InterN.A.tioN.A.l Ltd. 5,033.80 5,258.90 8,215.20 10,467.50

Bharati Shipyard Ltd. 10,199.00 13,480.00 16,090.00 11,024.00

Blue Dart Express Ltd. 9,075.40 11,499.00 14,922.70 N.A.

Brahmanand Himghar Ltd. 66.455 48.855 42.362 N.A.

Chartered Logistics Ltd. 1,356.95 1,235.43 1,841.89 2,564.20

Chowgule Steamships Ltd. 2,376.32 910.927 839.649 856.97

Container Corporation of India Ltd. 34,524.00 37,306.00 38,924.70 40,609.50

Deutsche Post AG 3,090,430.50 3,089,543.00 3,659,847.70 N.A.

Essar Ports Ltd. 25,830.80 30,077.70 13,919.30 11,088.10

Four Soft Ltd. 1,945.93 1,329.60 1,219.06 1,280.58

Gateway Distriparks Ltd. 4,520.00 5,180.40 6,024.60 8,214.50


Gati Ltd. 7,904.10 9,261.10 12,094.40 N.A.

Global Offshore Services Ltd. 1,632.25 2,124.12 1,968.17 2,335.70

Great Eastern Shipping Company Ltd. 41,239.30 30,755.10 25,850.30 29,342.50

Gujarat Pipavav Port Ltd. 2,207.10 2,839.30 3,967.70 N.A.

Mercator Ltd. 22,105.10 18,087.30 28,316.80 36,999.10

Seamec Ltd. 471.213 1,419.55 ‐671.66 ‐131.9

Shreyas Shipping and Logistics Ltd.

55.86 ‐157.05 127.77 56.3

Sical Logistics Ltd. 180.1 ‐356.3 ‐80.3 139.9

SKS Logistics Ltd. 0.77 ‐81.87 32.65 8.889

The Shipping Corporation of India Ltd.

9,406.70 3,769.10 5,673.50 ‐4,282.10

Transport Corporation of India Ltd.

332.6 412.7 501.3 595.00

Varun Shipping Co. Ltd. 1,240.30 ‐1,528.80 147.5 91.80


Annual Financial Results – Income (INR mn)


ABC India Ltd. 43.3 8 54.9 N.A.

ABG Shipyard Ltd. 1,711.60 2,181.20 2,047.10 1,856.70

Allcargo Logistics Ltd. 1,299.50 1,659.20 2,228.70 2,345.90

Aqua Logistics Ltd. 111.5 205.4 223.9 82.9


Arshiya InterN.A.tioN.A.l 656.2 983.1 820.1 1,176.40

Bharati Shipyard Ltd. 1,334.80 1,303.50 1,043.80 59.50

Blue Dart Express Ltd. 611.9 947 1,241.90 N.A.

BrahmaN.A.nd Himghar 0.68 0.68 0.829 N.A.

Chartered Logistics Ltd. 15.85 40.26 78.21 61.2

Chowgule Steamships 1,175.67 766.64 276.93 ‐1,058.55

Container Corporation India Ltd.

7,791.50 7,776.30 8,763.70 8,778.80

Deutsche Post AG 42,834.90 151,983.00 80,174.90 N.A.

Essar Ports Ltd. 772 937.7 362.9 639.2

Four Soft Ltd. 447.25 76.65 30.942 ‐426.38

Gateway Distriparks Ltd. 795.8 791.4 967.5 1,320.30

Gati Ltd. ‐186.6 95 141 N.A.

Global Offshore Services 411.49 412.2 222.24 256.1

Great Eastern Shipping Company Ltd. 14,178.30 5,127.60 4,687.00 3,165.50

Gujarat Pipavav Port Ltd. ‐1,163.90 ‐547.2 571 N.A.

Mercator Ltd. 3,764.50 532.4 940 205.6

Shreyas Shipping and Logistics Ltd. 802.9 860.2 873.0 N.A.

Sical Logistics Ltd. 1984.2 1751.2 1955.3 1,959.60

SKS Logistics Ltd. 80.4 53.9 53.8 N.A.

The Shipping Corporation India Ltd. 10257.0 11549.5 10259.1 10,109.70

Varun Shipping Co. Ltd. 803.6 647.0 N.A. N.A.



Quarterly Financial Results – Revenue (INR mn)

Companies JanMar 2012 AprJun 2012

JulSep 2012

OctDec 2012

ABC India Ltd. 585.1 475.0 N.A. N.A.

Allcargo Logistics Ltd. N.A.* 9751.9 10136.6 9,726.30

Aqua Logistics Ltd. 786.4 773.1 783.2 765.9

Arshiya International Ltd. 3204.4 3418.4 3725.7 N.A.

Bharati Shipyard Ltd. N.A. N.A. N.A. N.A.

Brahmanand Himghar Ltd. 2.7 4.3 6.8 7.685

Chartered Logistics Ltd. 761.2 708.2 655.3 550.3

Deutsche Post AG 915677.6 974856.6 939484.4 N.A.

Essar Ports Ltd. 2883.1 3245.0 3439.8 3659.7

Four Soft Limited 346.2 325.0 352.6 346.3

Gateway Distriparks Ltd. 2435.2 2304.1 2158.9 2,340.10

Gati Ltd. N.A. N.A. 2980.3 3,268.90

Global Offshore Services Ltd. 684.6 693.7 528.2 606.1

Great Eastern Shipping Company Ltd.

8435.2 8024.2 6577.9 7,518.10

Gujarat Pipavav Port Ltd. 925.8 849.1 864.7 N.A.

Mercator Ltd. 10195.0 10952.0 8222.6 8,093.50

Shreyas Shipping and Logistics Ltd.

802.9 860.2 873.0 N.A.


Sical Logistics Ltd. 1984.2 1751.2 1955.3 1,959.60


The Shipping Corporation India Ltd. 10257.0 11549.5 10259.1 10,109.70

Varun Shipping Co. Ltd. 803.6 647.0 N.A. N.A.

Quarterly Financial Results – Income (INR mn)

Companies JanMar 2012 AprJun 2012

JulSep 2012

OctDec 2012

ABC India Ltd. 6.2 0.7 N.A. N.A.

Allcargo Logistics N.A.* 556.0 592.1 360.8

Aqua Logistics Ltd. ‐32.2 15.0 15.5 13.7

Arshiya International Ltd. 308.7 346.2 354.3 N.A.

Brahmanand Himghar ‐1.4 ‐2.3 3.3 4.244

Chartered Logistics Ltd. ‐22.5 40.0 ‐12.9 17.5

Deutsche Post AG 36165.7 14173.3 25932.7 N.A.

Essar Ports Ltd. ‐615.1 685.2 805.3 904.2

Four Soft Ltd. ‐477.3 27.6 46.6 34.1

Gateway Distriparks Ltd. 320.2 352.0 298.3 280.3

Gati Ltd. N.A. N.A. ‐77.9 50.6

Global Offshore Services Ltd. 95.2 397.9 39.8 96.3

Great Eastern Shipping Company Ltd. 391.9 1809.9 812.0 1,918.40


Gujarat Pipavav Port 140.8 157.3 81.7 N.A.

Mercator Ltd. ‐243.0 170.7 53.1 ‐2,292.60

Shreyas Shipping and Logistics Ltd. 64.6 67.4 7.1 N.A.

Sical Logistics Ltd. 68.4 13.7 2.2 5.8


The Shipping Corporation India Ltd. ‐3558.5 ‐548.7 2972.6 ‐752.6

Varun Shipping Co. Ltd. ‐1384.6 1452.2 N.A. N.A.

Events Calendar

India Transport & Logistics Show 2013 Date: 2nd – 4th May, 2013 Venue: Pragati Maidan, New Delhi, India Website: www.reedexpo.com

India Auto Expo 2013 Date: 23rd – 26th May, 2013 Venue: Chennai Trade Centre City: Chennai Organizer: Vijay Shanthi Exhibitions Pvt. Ltd Website: www.indiaautoexpo.in/


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research on india_automotive and transport sector in india monthly update_april 2013

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