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DATA ANALYSIS AND INTERPRETATIONS

The robust fiscal position of India that aided the Indian economy to fight recession in

two thousand eight is quivering. The shortfall of fiscal has reared up aggressively and

made the government of India to borrow at mellower prices. The revenue from taxes

is expected to suffer due to the slowdown in the manufacturing and infrastructure

industries. Budgets for the developmental and income-support programs aimed to

help the India’s rural lands will force the rural consumers to save more and spend less.

The depreciation of the Indian rupee has made exports more attractive. However the

new orders from sputtering advanced economies that are subdued will create a

descending force on industrial production of India .The slowing Foreign Direct

Investment and unpredictability in revenues from export has exfoliated pressure on

the Indian rupee. The Companies have to come up with different means to decrease

their prices, amend the power of producing and carry off the risk of inflation shock,

increase in interest rate and unpredictability of rupee. The factors that have affected

the automobile sector are high borrowing cost, increase in prices of commodity, tough

monsoon affecting the rural economy, non availability of finance to auto sector and its

customers, change in law pertaining to duties in terms of excise and customs , taxes

in terms of income, Sales and Value Added and government policy. The fast-growing

recessionary trends have posed a threat to the growth of hospitality industries in the

highly unstable territory. The Hotel industry and tourism industry are interrelated to

each other as the foreign arrivals to India is backed up by the Tourism industry. The

public-sector banks are more susceptible to the challenges like margin track record,

liquidity and inferior asset quality than private banks. The government has failed to

provide fresh equity support to public-sector banks and the shortage of support has

hindered the operations of the bank. The banks oppose the inflow of private

automotive equity investment, as it would erode the control and threaten jobs and

benefits. The Indian real estate is facing challenges like liquidity, reduction of

accessibility of urban land, postponements in approvals and the retarding speed of

infrastructural growth. The data is collected through questionnaires and analyzed by

using Graphs and Statistical tool SPSS. The data from thirty automobile companies,

thirty nine Banking and Financial institutions, forty one hospitality companies, and

forty Real Estate companies respectively are collected and analyzed. There are twenty

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six questions, twenty four questions, twenty nine questions, and twenty one questions

respectively framed in the form of questionnaire and these questions are divided into

three parts as per the objectives and hypothesis.

6.1 AUTOMOBILE COMPANIES

The Indian Automobile sector is the world’s quickest flourishing industries. The

automobile sector manufactures different types and designs of automobiles as per the

need and status of customers. They provide employment to majority of Indian

population. Since 1991, after economic recession the Indian automobile Industry was

growing significantly as the liberation brought restriction free environment among the

automobile industries in India and foreign countries. The growth of Indian automobile

industry is affected due to the obstacles caused by Indian political, economic system,

cutthroat competition and industrial recession. Some problems like domestic sale and

export of vehicles surfaced in the Indian Automobile sector since 2007 due to the

global economic meltdown which affected the Indian economy in the form of

economic recession. Therefore we need to bring about reforms that will help us to

overcome the recession and help us to develop the automobile industry in India.

The Recession has offended the Indian auto industry with decline in sales and many

joint ventures being put on hold. The shortage of consumer finance and rising interest

rates are affecting the consumers from buying vehicles. For the purpose of data

analysis, thirty automobile companies are selected which manufactures different types

and designs of automobiles as per the need and status of customers and also required

spare parts to these branded automobiles through ancillary industries. There are

twenty six questions framed in the form of questionnaire and these questions are

divided into three parts as per the objectives and hypothesis.

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1. To understand and be acquainted with the global recession that has affected

the Automobile companies of India.

Table: 6.1.1- Budget of the Automobile Companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Budget of the Automobile

Companies In Crores

Acey Engineering Private Limited

2.15 1.05 4 3.1 5.15 3 4.1 6

Agra Engineering Company 3.5 3 6.4 4.1 7.18 4.35 5.7 7.2 ALD Automotive 5.15 6 8.1 7 9 5 5.5 6 Amforge Industries Limited 8.5 7 9.2 9 9.25 8.75 9.6 8.9 Arval India 7 6 7.8 7 8 6.9 12 9 Ashok Leyland 11 10.5 12.2 13.4 9 14 10.4 10.5 Asia MotorWorks Limited 2.32 2.75 3.27 4.5 2.4 3 3.4 3.3 Bharat Gears Limited 4.74 4 7.4 6.5 0.4 4.5 8.2 6.5 Bajaj 11 10.5 13 12.0 11.2 8 15 12 Balu India 13.9 12.3 14 15 11 13 13 14 CEAT Limited 13 12.2 24 21.1 34 30 43 41.5Ceekay Daikin Limited 0.55 0.34 1.9 1.75 2 0.78 1.25 1.15 Conwest Private Limited 2 1.35 5.19 4.2 7 5.15 5.78 6 Eicher 9 7 12.1 10 13.9 14 16 15 Force Motors Limited 1.33 1.55 1.8 1.78 2.5 0.4 1.25 1.35 Hindustan Motors 10 9 12 11.1 15 15.1 18 20.1Hero Honda 12 17 15.2 15 14.1 12.3 15.2 16 Kinetic motors 12 10 12.5 13 14.4 15 11 12.2KLT Automotive and Tubular Products Limited

9 10 12.2 11.6 12.7 6 7 8.9

Kumar Auto Sales 0.65 0.55 0.7 1 0.5 3 0.7 1.25 Mahindra and Mahindra limited 11 11.2 13.2 12.1 14 6.1 7 9.1 Maruti Udyog 11.9 13.9 15.1 14.6 9.9 16.1 11 13 MRF 0.7 0.78 0.67 0.8 1.1 0.25 0.4 0.7 Shah Brothers 7.2 7.1 10.9 8.2 11.1 12.7 15.8 11.6 SK Group 7 5.09 10.5 11.4 11.9 12.2 13.0 14.2Taj Auto Accessories 1.7 1.9 3.1 2.67 5 3 4.1 5.25 Tata motors 4.2 5 7 6.17 4 8 7 5.2 TVS 5.74 3.09 6.25 7.4 8.9 6.25 8.05 7 Viral Engineers 6.9 5.86 7.09 6.6 6.8 8.1 8 5 Yamaha 9.1 10.8 10.9 7.22 11.1 8.8 10.6 9

Source: Collected through Questionnaires and Interview method

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Figure: 6.1.1- Budget of the Automobile companies during Global recession

Interpretation- As per the above data and graph we can analyze that in the year 2009, the budget of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had been affected. It is reported that Indian automobile market had recorded a continuous growth of about seventeen point two percent in 2004-2008 but in the year 2009 the recession had brought the growth to about seven to eight percent leading to a negative terrain. The reduction of budget of the automobile companies was due to the economy and current market conditions that resulted in the financial forecast of the companies. The alterations in the rates of inflation and conditions of the share market have instantly caused the decline in the profitability of the companies. Most of these automobile companies relied heavily on investments. These investments’ were assumed as a funding vehicle and the poor stock market performance had negative effect on budget predictions. The changes in the legislature policies creates difficult for the companies in giving projections of budget. In most cases, if the businesses or industries are aware of pending legislation then they can plan accordingly before preparing the budget. Sometimes, just the introduction of future legislation can disrupt the budget projections.

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Budget of the Automobile Companies during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Budget

Name of the AutomobiileCompanies

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Table: 6.1.2- Procurement of Raw materials of Automobile Companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Procurement of Raw

Materials of Automobile Companies in tonnes


8 7.09 9 8.5 10.2 7.78 9.6 8.9

Agra Engineering Company 5 4 7.2 7 7.15 6.9 10 8 ALD Automotive 9.2 8.15 12.3 10.1 9 13.5 10.1 9.7 Amforge Industries Limited 2.32 1.75 4.5 3.27 3 2.4 3.4 1.3 Arval India 5.74 4.18 7.4 6.25 9.9 4.25 7.5 8.25 Ashok Leyland 10.0 14 18.1 16.0 26 21.1 32 28 Asia MotorWorks Limited 12.3 13.8 14.0 16.8 11 13 18 14.3 Bharat Gears Limited 14.1 23 24 21.1 34 39 43 41.5Bajaj 0.34 0.55 1.9 1.75 2.19 0.78 1.35 1.15 Balu India 1.35 2.48 4.18 5.09 7.09 5.15 6.78 6 CEAT Limited 9 10.1 11.6 12.1 13.9 14 16 15 Ceekay Daikin Limited 1.55 1.33 1.78 1.8 2.5 0.4 1.25 1.35 Conwest Private Limited 10.1 9.12 15.1 13.2 25 15.3 25.3 20.1Eicher 27.2 12.1 38.1 32.1 32.2 40.1 35.2 36.1 Force Motors Limited 12.2 10.1 22.2 14.2 23.1 17.4 21.1 22.2 Hindustan Motors 10 9 12.1 11.6 12.7 6 7 8.9 Hero Honda 0.6 0.45 1.7 0.7 10 15 0.15 0.25 Kinetic motors 11 11.9 13.1 12.6 15 9.1 13 11 KLT Automotive and Tubular Products Limited

12.9 14.9 16.1 15.7 11.9 17.1 13 11

Kumar Auto Sales 0.67 0.78 0.38 0.68 0.35 0.9 0.5 0.48 Mahindra and Mahindra limited 7.12 12.2 18.2 20.9 21.2 18.8 19.9 21.6 Maruti Udyog 1.18 7.74 10.2 11.4 21.9 19.2 24.2 22.5MRF 10 9 11.6 12.1 6 12.7 8.9 7 Shah Brothers 0.45 0.6 0.7 1.7 5 5 5.15 5.25 SK Group 11.9 11 12.6 13.1 15 9.1 13 13 Taj Auto Accessories 14.9 12.9 15.6 16.1 17.1 11.9 13 15 Tata motors 0.78 0.67 0.68 0.38 0.9 0.78 0.88 0.9 TVS 6.16 6.12 8.22 10.9 11.1 8.78 9.89 11.6 Viral Engineers 7.74 5.18 11.2 12.4 13.9 9.25 10.5 14.2Yamaha 7.8 5.6 7.67 7.1 8.1 8.9 15 11


Interpretation- From the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha witnessed increase in procurement of raw materials. Due to global recession the supporting companies including first-tier, second-tier, and third-tier suppliers could not provide various materials like metals, plastics, rubber, glass and fibers required in preparation and processing of the demand to complete the order of manufacturing the automobiles. The automobile companies could not produce enough goods to satisfy the demand as the price of procurement was more than the profit of selling the actual product.

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Table: 6.1.3- Production of the Automobile Companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Production of the

Automobile Companies in Crores


3.32 2.75 4.5 4.27 5 3.4 4.4 3.8

Agra Engineering Company

5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5 ALD Automotive 14 10.05 18.1 16.02 26 21.1 32 28 Amforge Industries Limited

13.89 12.3 14.09 16.8 13 11 18 14.3 Arval India 23 14.1 24 21.1 39 34 43 41.55 Ashok Leyland 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15 Asia MotorWorks Limited 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6 Bharat Gears Limited 10.1 9 12.1 11.67 14 13.9 16 15 Bajaj 1.33 1.55 1.8 1.78 0.4 2.5 1.35 1.25 Balu India 9.12 10.12 15.15 13.23 15.34 25 25.34 20.12 CEAT Limited 12.17 27.26 32.15 38.17 32.23 40.16 36.1 35.25 Ceekay Daikin Limited 1.15 2.25 4.21 6.25 7.44 13.15 12.24 11.12 Conwest Private Limited 7 8 10.6 11.15 6 12.7 8.9 7 Eicher 0.45 0.6 0.7 1.7 6 5 8.25 7.15 Force Motors Limited 11 11.9 12.67 13.1 9.1 15 13 11 Hindustan Motors 14.9 12.9 15.67 16.1 11.9 17.1 15 13 Hero Honda 0.78 0.67 0.68 0.38 1.9 0.17 0.5 0.48 Kinetic motors 12.16 7.12 18.22 20.9 18.78 21.18 21.6 19.89 KLT Automotive and Tubular Products Limited

7.74 1.18 8.25 9.47 7.25 10.9 8.59 10.25

Kumar Auto Sales 10 9 11.6 12.15 12.7 6 7 8.9 Mahindra and Mahindra limited

0.6 0.45 1.7 0.7 5 4 7.25 7.15

Maruti Udyog 1.55 1.34 1.75 1.9 2.19 0.78 1.15 1.25 MRF 1.05 2.08 4.1 5.09 7.09 5.15 6.78 6 Shah Brothers 9 10.1 12.1 11.67 14 13.9 16 15 SK Group 0.55 0.33 1.7 1.6 2.5 2.3 1.35 1.25 Taj Auto Accessories 10.05 14 18.1 16.09 26 21.1 28 32 Tata motors 2.3 3.89 6.8 4.09 7 5 7.3 8 TVS 14.1 23 24 21.1 39 34 41.55 43 Viral Engineers 1.34 1.55 1.9 1.75 2.19 1.18 1.15 1.35 Yamaha 2.48 1.35 4.18 5.09 7.09 5.15 6 6.78 Source: Collected through Questionnaires and Interview method

Interpretation- From the above data and graph we can analyze that from 2004-2008, the automobile companies witnessed increase in production and exports of automobiles. The Production growth of the automobiles were recorded thirty nine point thirty three percent of passenger vehicles, forty eight percent of commercial vehicles, fifty five percent of three wheelers and sixty percent of two wheelers production. The overall production was increased by one point seven times of all types of automobiles in India. The automobile companies Agra Engineering Company, ALD Automotive, India Ashok Leyland, Asia MotorWorks Limited, Bajaj, Balu India , CEAT Limited, Ceekay Daikin Limited, Conwest Private Limited, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group ,Tata motors, TVS, Viral Engineers and Yamaha had their production affected by global recession. Due to global recession the automobile companies had decline in their commercial and industrial activities which led in decline in domestic sale of commercial vehicles. The export of commercial vehicles was affected as most of the commercial vehicles

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Table: 6.1.4- Sales of the Automobile Companies during Global recession

Year-wise 2004 2005

2006 2007 2008 2009 2010 2011 Sales of the Automobile Companies in Crores


3.32 2.75 4.5 4.27 5 3.4 4.4 3.8

Agra Engineering Company 5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5 ALD Automotive 14 10.05 18.1 16.0 26 21.1 32 28 Amforge Industries Limited 13.89 12.3 14.09 16.8 13 11 18 14.3 Arval India 23 14.1 24 21.1 39 34 43 41.5Ashok Leyland 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15 Asia MotorWorks Limited 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6 Bharat Gears Limited 10.1 9 12.1 11.6 14 13.9 16 15 Bajaj 1.33 1.55 1.8 1.78 0.4 2.5 1.35 1.25 Balu India 9.12 10.12 15.15 13.2 15.3 25 25.3 20.1CEAT Limited 12.17 27.26 32.15 38.1 32.2 40.1 36.1 35.2Ceekay Daikin Limited 1.15 2.25 4.21 6.25 7.44 13.1 12.2 11.1Conwest Private Limited 7 8 10.6 11.1 6 12.7 8.9 7 Eicher 0.45 0.6 0.7 1.7 6 5 8.25 7.15 Force Motors Limited 11 11.9 12.67 13.1 9.1 15 13 11 Hindustan Motors 14.9 12.9 15.67 16.1 11.9 17.1 15 13 Hero Honda 0.78 0.67 0.68 0.38 1.9 0.17 0.5 0.48 Kinetic motors 12.16 7.12 18.22 20.9 18.7 21.1 21.6 19.8KLT Automotive and Tubular Products Limited

7.74 1.18 8.25 9.47 7.25 10.9 8.59 10.3

Kumar Auto Sales 10 9 11.6 12.1 12.7 6 7 8.9 Mahindra and Mahindra limited

0.6 0.45 1.7 0.7 5 4 7.25 7.15

Maruti Udyog 1.55 1.34 1.75 1.9 2.19 0.78 1.15 1.25 MRF 1.05 2.08 4.1 5.09 7.09 5.15 6.78 6 Shah Brothers 9 10.1 12.1 11.6 14 13.9 16 15 SK Group 0.55 0.33 1.7 1.6 2.5 2.3 1.35 1.25 Taj Auto Accessories 10.05 14 18.1 16.0 26 21.1 28 32 Tata motors 2.3 3.89 6.8 4.09 7 5 7.3 8 TVS 14.1 23 24 21.1 39 34 41.5 43 Viral Engineers 1.34 1.55 1.9 1.75 2.19 1.18 1.15 1.35 Yamaha 2.48 1.35 4.18 5.09 7.09 5.15 6 6.78


Interpretation- As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their sales affected by global recession. Due to sliding economy that affected the Indian automobile industry with decrease in activity of selling and many joint stakes were being put on hold. The lack of finance and emerging interest rates were making the consumers to avoid from buying vehicles. The Japanese automobile firms like Toyota Motors and Honda Motor Company had to cut on their activities that led in the slashing of their production by thirty percent in 2009. The firm's Indian sales and production plant which is based in Bangalore had halted the production for eight days in a month. There was seven percent decline in sales due to emerging cost of the materials and a decelerating of rupee value. Even the India's largest automobile manufacturer Mahindra and Mahindra was not immunized which showed profit fall of twenty point six percent.

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Table: 6.1.5- Net Profit of the Automobile Companies during Global recession


Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Net Profit of the

Automobile Companies in Crores


6.65 5.86 5.39 3.78 6.47 5.11 5 5.5

Agra Engineering Company 5.7 6.97 1`0.57

4.06 27.4 5.66 7.08 8.1 ALD Automotive 11.78 21.35 30.98 35.07 34.0

8 24.7

8 36.1 36.1

Amforge Industries Limited 20.65 10.86 25.17 30.22 33.18

15.09

23.19

20.18 Arval India 7.7 6.97 7.79. 8.1 8.25 8.3 9.25 9.15

Ashok Leyland 15.09 14.25 17 18.25 18.45

19 23 20.15 Asia MotorWorks Limited 0.5 1.11 1.34 1.29 5 4.54 -0.35 -0.28

Bharat Gears Limited 11.25 8.78 9.18 15.7 20.08

14.78

26.1 24 Bajaj 10.65 9.86 15.17 13.22 23.1

8 25.0

9 21.1

9 17.1

8 Balu India 7.7 6.97 7.79. 8.1 8.25 8.3 9.25 9.15 CEAT Limited 15.09 14.25 17 18.25 18.4

5 19 23 20.1

5 Ceekay Daikin Limited 19 14 27 30 45 50 60 55 Conwest Private Limited 9.6 10.5 11.17 12.2 13.1

8 14.0

9 16.1

9 15.1

8 Eicher 5.9 6.7 7.09. 7.1 8.1 8.25 9.5 9.05 Force Motors Limited 10 14.9 23 25 29.1

1 28 17 16

Hindustan Motors 1.56 2.78 3.8 4.97 5.48 6.65 8.05 7.9 Hero Honda 7.4 8.56 8.89 8.78 7.09 9.58 7.09 7.3 Kinetic motors 11.25 13 18.25 16 19 19.4

5 23 20.1

5 KLT Automotive and Tubular Products Limited

19 10 30 27 45 50 60 55

Kumar Auto Sales 78 0.55 0.97 0.8 1.48 1.65 2.1 1.9 Mahindra and Mahindra limited

4.35 3.78 6.07 5.98 4.78 7.08 12.1 10

Maruti Udyog 10.86 10.65 15.17 20.22 13.18

15.09

13.19

20.18 MRF 6.97 7.7 8.1 7.79. 8.25 8.3 9.25 9.15

Shah Brothers 6.7 5.7 7.1 6.9 6.3 7.25 6.25 5.15 SK Group 0.11 0.42 1.34 0.19 0.78 1.54 -0.35 -0.28 Taj Auto Accessories 7.78 8.25 11.7 9.18 14.7

8 18.0

8 16.1 15

Tata motors 4.25 5.09 7 8.25 8.45 9 13 10.15 TVS 8.25 7.72 11.17 9.18 11.7

8 18.0

8 16.1 15

Viral Engineers 4.25 5.09 8.25 7 6.45 7 9 8.15 Yamaha 6.72 6.25 10.7 7.18 10.7 11.7 15 12

Figure: 6.1.5- Net Profit of the Automobile companies during Global recession

Interpretation- The above data and graph shows that these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha witnessed decline in their profits. The net profit of the automobile companies declined as sales of most of the companies were declined and many takeovers/acquisitions had to be put on hold. The high interest rates by the banks were preventing not only the consumers from buying vehicles but also owners to pay back their loans. Most of the automobile companies had to cut on their sales projections and also close down their outlets to rationalize the production costs.

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Name of the Automobile Companies

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Table: 6.1.6- Taxes paid by the Automobile Companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Taxes paid by the

Automobile Companies in lakhs


0.2 0.15 2.09 1.24 3.08 2.09 3.8 3.18

Agra Engineering Company 8.22 5.82 12.43 13.35 4.45 5 7.1 5.12 ALD Automotive 7.4 4.12 11.03 8.1 67.29 31.8 67.09 55.55 Amforge Industries Limited 3.77 4.33 4.44 2.04 3.35 3.89 3.89 3.09 Arval India 7.01 6.8 6.81 6.57 7.58 7 12.9 9 Ashok Leyland 1.16 0.14 3.98 2.19 5.08 5.14 8.9 7.7 Asia MotorWorks Limited 124 117 156 135 147 126 114 112 Bharat Gears Limited 12.24 10.1 13.78 13.09 15.09 12.78 18.9 13.67 Bajaj 2.24 2.15 4.78 2.09 7.09 5.78 9.09 7.67 Balu India 8.24 7.15 11.78 9.09 12.09 13.78 19.09 17.67 CEAT Limited 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 Ceekay Daikin Limited 6.4 4.5 8.7 7.9 9.9 7.7 5.5 6.6 Conwest Private Limited 7.7 6.46 9.5 8.6 10.09 6.67 10.4 8.09 Eicher 8.3 5.76 13.5 9.5 15.09 5.67 10.5 7.09 Force Motors Limited 5.33 6.03 2.57 1.45 4.08 6.04 11.34 10.05 Hindustan Motors 7.7 6.16 9.5 8.6 10.19 6.79 12.4 8.19 Hero Honda 5.9 4.09 7 6.09 8.7 6.97 5.09 4.07 Kinetic motors 6.6 5.4 8.09 7.7 9.19 7.89 8.98 8.1 KLT Automotive and Tubular Products Limited

7.78 6.56 9.1 8.09 10.89 11.78 14.89 13.19

Kumar Auto Sales 6.78 5.56 8.8 7.1 9.89 10.78 15.67 11.39 Mahindra and Mahindra limited

3.24 3.15 5.78 4.09 6.09 7.78 8.09 7.67

Maruti Udyog 8.24 7.15 11.78 9.09 13.09 15.78 19.09 17.67 MRF 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 Shah Brothers 6.4 4.5 8.7 7.9 9.9 7.7 5.5 6.6 SK Group 14 11 16 15 17 12 14 11 Taj Auto Accessories 12.24 10.1 13.78 13.09 15.09 12.78 18.9 13.67 Tata motors 29 27 56 35 47 26 34 22 TVS 12.24 10.1 13.78 13.09 15.09 12.78 18.9 13.67 Viral Engineers 14 11 16 13 17 16 14 11 Yamaha 8.24 7.56 11.78 10.09 12.09 9.78 11.9 10.67


Figure: 6.1.6- Taxes paid by the Automobile Companies during Global recession

Interpretation- As per the above data and graph we can analyze that from 2004-2008, the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha witnessed decrease in taxes.

As per the data, the taxes paid by the Automobile companies vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.

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Table: 6.1.7- Changes in the number of employees of Automobile Companies during Global recession.

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Changes in number of

Employees of Automobile Companies in Hundreds


110 90 160 128 230 170 220 180

Agra Engineering Company 60 40 150 70 180 145 205 185

ALD Automotive 80 70 130 110 150 60 115 110 Amforge Industries Limited 140 120 180 170 160 130 187 150 Arval India 140 150 156 180 140 150 178 130 Ashok Leyland 125 100 210 150 250 180 230 200 Asia MotorWorks Limited 220 150 300 250 340 300 405 378 Bharat Gears Limited 240 220 380 270 400 330 370 350 Bajaj 280 250 356 300 367 250 308 280 Balu India 130 110 180 150 210 180 287 250 CEAT Limited 540 350 156 180 340 150 278 230 Ceekay Daikin Limited 412 380 670 525 760 430 509 480 Conwest Private Limited 525 400 750 650 770 340 400 350 Eicher 515 480 640 625 670 450 460 430 Force Motors Limited 510 700 150 250 350 200 190 170 Hindustan Motors 190 100 289 278 350 245 278 260 Hero Honda 220 150 350 270 400 180 175 185 Kinetic motors 190 100 289 278 350 245 278 260 KLT Automotive 220 210 340 230 380 150 175 165

Kumar Auto Sales 480 500 250 678 450 145 378 250 Mahindra and Mahindra limited

220 150 350 270 400 180 175 185

Maruti Udyog 110 80 375 250 420 380 540 405 MRF 40 20 80 70 100 60 180 150 Shah Brothers 379 350 425 413 520 350 439 420 SK Group 220 150 350 270 400 180 175 185 Taj Auto Accessories 225 200 350 250 470 240 380 320 Tata motors 315 280 440 325 470 450 460 430 TVS 80 70 150 98 170 140 310 200 Viral Engineers 220 150 350 270 400 345 175 185 Yamaha 180 170 230 210 250 180 225 210


Figure: 6.1.7- Changes in the number of employees of Automobile Companies during Global recession

Interpretation- As per the above data and graph we can analyze that from 2004-2008 most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha witnessed changes in the attrition of employees.

The change in number of employees in the Automobile sector during global recession was due to sudden reduction in creation of employment. The new appointees to the organizations were sent back home with advance three months salary due to company policy of cutting costs and salary of many employees were reduced by twenty percent of their actual salary.

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Table: 6.1.8- Total assets of the Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total assets of the

Automobile companies in Crores


9.15 8.23 12.12 10 16.2 10.1 22.2 18.2

Agra Engineering Company 13.28 10.16 18.26 17.15 25.1 8.56 23.2 14.1

ALD Automotive 22.15 17.26 30.16 28.17 32.2 22.1 30.1 25.2Amforge Industries Limited 20.21 12.25 23.15 22.25 27.4

4 20.1

5 32.2

4 31.1

2 Arval India 15.23 13.15 26.1 20.25 32.15

27.25

31.2 28.7

Ashok Leyland 30.16 16.25 37.15 38.26 33.28

23.18

36.6 35.52 Asia MotorWorks Limited 134.08 12.68 56.98 48.04 124 14.7

2 23.9

8 21.1

Bharat Gears Limited 17.26 12.5 28.17 20.15 30.16

32.3 36 35.5 Bajaj 12.5 10.15 27.25 20.2 33.1 17.4 24.2 21.1Balu India 23.15 17.25 30.25 26.23 32 24.5 40.2 35.7

CEAT Limited 10.25 9.5 12.25 12.21 13.1 7.44 12.2 11.1Ceekay Daikin Limited 12 9.08 20.12 15 25.1 17.1 22.1 20.1

Conwest Private Limited 23.09 15.9 34 24.72 21 15.535.4 20.3

Eicher 33.26 22.5 38.45 38.23 39.4 36.4 40.4 38.4

Force Motors Limited 13.89 12.3 14.09 16.8 11 13 23 21.3 Hindustan Motors 30.12 29.12 43.15 38.23 45 45.3 55.3 50.1Hero Honda 27.26 22.17 38.17 32.15 40.1

6 32.2

3 36.1 35.2

5 Kinetic motors 32.25 20.15 42.25 40.21 43.15

37.44

42.24

41.12 KLT Automotive and

Tubular Products Limited 13.09 15.9 34 14.72 21 35.5 45.4 40.3

Kumar Auto Sales 12.12 15.08 17.1 13.78 18.08

15 18.23

15.8 Mahindra and Mahindra limited

22.03 23.26 33.8 26.06 45.57

37.31

78.2 44.74 Maruti Udyog 29.74 23.18 31.47 30.25 31.9 28.2

5 34.2

5 32.5

9 MRF 14 10.05 18.1 16.02 21.1 26 32 28

Shah Brothers 29.74 23.18 31.47 30.25 31.9 28.2 34.232.5SK Group 56.9 45.86 57.1 57.67 58.1 41.9 48 45

Taj Auto Accessories 22.18 19.12 30.9 27.22 31.1 28.7 31.6 29.8Tata motors 30.25 29.74 31.9 31.47 32.5 28.2 32.5 30.2TVS 17.09 15.09 17.21 18.09 17.6 12.1 15.1 13.8

Viral Engineers 22.16 17.12 30.9 28.22 31.1 28.7 31.6 29.8Yamaha 29.74 23.18 31.47 30.25 31.9 28.2

5 34.2

5 32.5

9 Source: Collected through Questionnaires and Interview method

Interpretation -As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their total assets affected by global recession.

There was increase in investment of assets during 2006-2008 but there was decrease in investments of assets as the operations and sales slowed down due to global recession in the year 2009. In the year 2010 and 2011 the Automobile sector had to investment more on assets in order to earn more customers and to generate employment.

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Table: 6.1.9- Total liabilities of the Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total liabilities of the



11.21 9.1 18.69 15.1 18.87 15.02 20.27 16.16

Agra Engineering Company 12 10.18 22.45 20.15 23.2 17.25 22.2 21.1

ALD Automotive 18.45 15.2 22.52 20.25 28.15 16.23 33.6 30.25

Amforge Industries Limited 30.12 29.12 43.15 38.23 45 45.34 55.34 50.12

Arval India 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Ashok Leyland 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Asia MotorWorks Limited 13.09 15.9 34 14.72 21 35.55 45.47 40.34

Bharat Gears Limited 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48

Bajaj 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15

Balu India 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28

CEAT Limited 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Ceekay Daikin Limited 167.78 134 156.9 123.85

170.09 34.9 80 78.89

Conwest Private Limited 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Eicher 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Force Motors Limited 14.05 13.45 28.07 15.08 44.09 23.09 10.15 12.9

Hindustan Motors 17.26 12.17 28.17 22.15 30.16 20.3 26.1 23.25

Hero Honda 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Kinetic motors 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25

KLT Automotive and Tubular Products Limited

32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2

Kumar Auto Sales 16.09 11.5 56 78.09 65.09 76.09 45 34.89

Mahindra and Mahindra limited

27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Maruti Udyog 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

MRF 23.58 14.08 45.07 34.18 54.67 78.9 47 45.67

Shah Brothers 38.23 30.12 45 43.15 50.12 46.15 50.15 48.25

SK Group 30.16 28.56 37.15 33.28 38.26 35.16 43.27 40.16

Taj Auto Accessories 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Tata motors 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

TVS 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17

Viral Engineers 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1

Yamaha 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25


recession

Interpretation- As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their total liabilities affected by global recession.

There was decline in liabilities as companies had reduced in borrowing funds from the banks and other financial institutions or from money lenders. Even banks were facing difficulties in getting funds from their customers.

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Table: 6.1.10- Investments of the Automobile Companies during Global recession (Here Investments include invest in New ventures like Mergers, strategic alliances, Acquisitions)

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Investments of the Automobile Companies in

Crores Acey Engineering Private Limited

13.28 5.77 18.26 18.26 15.16 17.15 22.16 18.6

Agra Engineering Company 12 8 22.45 12.5 17.25 20.15 21.1 23.2

ALD Automotive 8.4 9 22.52 12.52 16.23 10.25 20.25 18.15

Amforge Industries Limited 10.12 12 13.15 13.15 15.4 18.23 20.12 15

Arval India 17.26 12.4 18.17 18.17 22.23 12.15 15.25 10.16

Ashok Leyland 12.25 10.2 22.25 12.5 17.44 20.21 21.12 23.15

Asia MotorWorks Limited 13.09 8.24 14 14 15.55 14.72 40.34 21

Bharat Gears Limited 13.26 9.4 18.45 18.45 16.44 18.23 18.48 19.44

Bajaj 7.25 6.4 21.09 11.09 18.14 10.16 14.5 12.5

Balu India 8.55 7.7 12 8 9.28 17.26 23.28 20.28

CEAT Limited 11.6 8.3 28.17 18.17 22.23 12.5 25.25 20.6

Ceekay Daikin Limited 7.78 5.33 15.9 6.9 14.9 13.5 18.8 17.9


Eicher 7.25 5.9 12.25 8.25 17.44 10.21 11.12 13.15

Force Motors Limited 11.05 6.6 8.07 14.07 13.09 5.08 -12.9 14.09


Hero Honda 12.25 6.78 22.25 15.5 17.44 20.21 21.12 23.15

Kinetic motors 5.45 3.24 7.52 6.52 6.23 8.25 10.25 8.15 KLT Automotive and Tubular Products Limited

9.9 8.24 22.5 12.5 17.7 20.6 25.2 23.5

Kumar Auto Sales 16.09 9.4 16 18 15.9 8.09 14.89 15.09 Mahindra and Mahindra limited

7.26 6.4 18.7 8.17 15.3 9.5 15.5 10.6

Maruti Udyog 15.25 14 32.5 22.25 27.44 30.21 31.12 33.15

MRF 13.58 12.24 25.07 15.07 18.9 14.18 15.67 14.67

Shah Brothers 38.23 29 45 45 46.15 43.15 48.25 50.12

SK Group 20.6 12.24 17.15 27.5 25.16 13.28 20.16 18.26

Taj Auto Accessories 17.26 14 18.7 18.7 12.3 12.15 15.25 20.16

Tata motors 12.25 8.24 22.25 15.5 17.4 20.21 21.12 23.15

TVS 33.15 30 35.25 35.25 32.15 32.23 38.17 36.1

Viral Engineers 32 27 42.45 42.45 37.25 40.15 41.1 43.2

Yamaha 28.45 19.8 32.52 32.52 36.23 30.25 40.25 38.15


52

Figure: 6.1.10- Investments of the Automobile Companies during Global recession

Interpretation- As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their investments affected by global recession compared to the previous years’ 2004-2008. The size and high growth potential of the Indian car market has attracted several overseas players who have flourished their business in India. The Hyundai is the largest passenger car exporter and the second-largest car manufacturer in India. The company sold a total of six lakh vehicles in the year 2010–11. It further plans to invest dollar two fifty million by 2013. Nissan has doubled the production in its small car Micra to 500 units/day and further plans to invest dollar one billion in its plant located in India. The General Motors has expansion plans for its factory in Gujarat which is worth dollar two fifty million.

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Investments of the Automobile Companies during Global recession

2004 20052006 20072008 20092010 2011

Investments


53

Table: 6.1.11- Performance of shares/ stocks of Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Performance of shares/ stocks of Automobile Companies in lakhs Acey Engineering Private Limited

8.55 7.7 9.28 8 12 17.26 23.28 20.28


ALD Automotive 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Amforge Industries Limited 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Arval India 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Ashok Leyland 11.05 6.6 13.09 14.07 8.07 5.08 -12.9 14.09 Asia MotorWorks Limited 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16 Bharat Gears Limited 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15 Bajaj 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15 Balu India 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5 CEAT Limited 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Ceekay Daikin Limited 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Conwest Private Limited 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Eicher 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Force Motors Limited 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Hindustan Motors 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28 Hero Honda 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Kinetic motors 16.78 14 16.9 13.85 17.09 34.9 80 78.89 KLT Automotive and Tubular Products Limited

32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Kumar Auto Sales 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Mahindra and Mahindra limited

12.12 15.08 17.1 13.78 18.08 15 18.23 15.8

Maruti Udyog 22.03 23.26 33.8 26.06 45.57 37.31 78.2 44.74 MRF 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Shah Brothers 14 10.05 18.1 16.02 21.1 26 32 28 SK Group 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Taj Auto Accessories 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Tata motors 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89 TVS 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25 Viral Engineers 17.09 15.09 17.21 18.09 17.68 12.12 15.18 13.89 Yamaha 22.16 17.12 30.9 28.22 31.18 28.78 31.6 29.89


Global recession

Interpretation- As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their performance of shares/ stocks affected by global recession.

Most of these automobile companies are the components of BSE auto exponent. The share or stock rates of these companies have been drastically fallen causing agnosticism. The reduction of sales and profits of these automobiles in terms of passenger and commercial vehicles that include two and four wheelers, the other factors include demand and supply of the auto products, reduction in labour force, falling rupee value and inflation. All these led in the decline in the performance of shares of these automobile companies.

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Table: 6.1.12- Exports of the Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Exports of the



17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16

Agra Engineering Company 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 ALD Automotive 13.09 8.24 15.55 14 14 14.72 40.34 21 Amforge Industries Limited 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 Arval India 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Ashok Leyland 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Asia MotorWorks Limited 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Bharat Gears Limited 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Bajaj 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Balu India 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 CEAT Limited 11.05 6.6 13.09 14.07 8.07 5.08 -12.9 14.09 Ceekay Daikin Limited 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16 Conwest Private Limited 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15 Eicher 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15 Force Motors Limited 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5 Hindustan Motors 23 14.1 24 21.1 34 39 43 41.55 Hero Honda 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15 Kinetic motors 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6 KLT Automotive and Tubular Products Limited

10.1 9 12.1 11.67 13.9 14 16 15


10.12 9.12 15.15 13.23 25 15.34 25.34 20.12

Maruti Udyog 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25 MRF 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12 Shah Brothers 8 7 11.15 10.6 12.7 6 8.9 7 SK Group 0.6 0.45 1.7 0.7 5 6 8.25 7.15 Taj Auto Accessories 11.9 11 13.1 12.67 15 9.1 13 11 Tata motors 14.9 12.9 16.1 15.67 17.1 11.9 15 13 TVS 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48 Viral Engineers 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89 Yamaha 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59


Figure: 6.1.12- Exports of the Automobile Companies during Global recession

Interpretation- As per the above data and graph we can depict that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their exports affected by global recession.

The exports from automobile constituents of India dropped to twenty five percent in the year 2012. It was due to the recession that hit Europe and Germany. As Europe imports thirty six percent of Indian automobile products. There is also tough competition with other Asian countries in the world market. If we look at China, its exports have raised from seventy three percent to dollar thirty nine billion. This creates pressure in pricing and delivery of the quality products thus reducing the

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Table: 6.1.13- Imports of the Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Imports of the Automobile

companies in Crores


32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Agra Engineering Company 13.09 15.9 34 14.72 21 35.55 45.47 40.34

ALD Automotive 12.12 15.08 17.1 13.78 18.08 15 18.23 15.8

Amforge Industries Limited 22.03 23.26 33.8 26.06 45.57 37.31 78.2 44.74

Arval India 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59

Ashok Leyland 14 10.05 18.1 16.02 21.1 26 32 28

Asia MotorWorks Limited 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59

Bharat Gears Limited 56.9 45.86 57.1 57.67 58.1 41.9 48 45

Bajaj 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89

Balu India 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25

CEAT Limited 17.09 15.09 17.21 18.09 17.68 12.12 15.18 13.89



Eicher 8.55 7.7 9.28 8 12 17.26 23.28 20.28

Force Motors Limited 11.64 8.32 22.13 18.1 28.07 12.4 25.15 20.3


Hero Honda 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16

Kinetic motors 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 KLT Automotive and Tubular Products Limited

11.05 6.6 13.09 14.07 8.07 5.08 -12.9 14.09


12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15

Maruti Udyog 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15

MRF 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5

Shah Brothers 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

SK Group 13.09 15.9 34 14.72 21 35.55 45.47 40.34


Tata motors 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15

TVS 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28

Viral Engineers 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Yamaha 167.78 134 156.9 123.8 170.09 34.9 80 78.89


Figure: 6.1.13- Imports of the Automobile companies during Global recession

Interpretation- As per the above data and graph we can depict that these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their imports affected by global recession .

The imports of auto products have been higher compare to the exports of the same causing imbalance in the balance of payments in the country. Though growth rate in imports have declined which in directly helped in decline of import of automobile products. With many domestic automotive industries calling for production cut to survive in the world market causing botheration to the automotive subsidiaries.

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Vira

l Eng

ine

ers

Ya

ma

ha

Imports of the Automobile companies during Global recession

2004 2005

2006 2007

2008 2009

2010 2011

Imports


59

Table: 6.1.14.1- Inventory (Number of Automobiles manufactured) of the Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Number of automobiles manufactured in Tonnes


3.32 2.75 4.5 4.27 5 3.4 4.4 3.8


ALD Automotive 14 10.05 18.1 16.02 21.1 26 32 28

Amforge Industries Limited 13.89 12.3 14.09 16.8 11 13 18 14.3

Arval India 23 14.1 24 21.1 34 39 43 41.55

Ashok Leyland 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15

Asia MotorWorks Limited 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

Bharat Gears Limited 10.1 9 12.1 11.67 13.9 14 16 15

Bajaj 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Balu India 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12

CEAT Limited 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25


Conwest Private Limited 8 7 11.15 10.6 12.7 6 8.9 7

Eicher 0.6 0.45 1.7 0.7 5 6 8.25 7.15

Force Motors Limited 11.9 11 13.1 12.67 15 9.1 13 11

Hindustan Motors 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Hero Honda 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

Kinetic motors 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89


7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59

Kumar Auto Sales 10 9 12.15 11.6 12.7 6 8.9 7


0.6 0.45 1.7 0.7 5 4 7.25 7.15

Maruti Udyog 1.55 1.34 1.9 1.75 2.19 0.78 1.25 1.15

MRF 2.08 1.05 5.09 4.1 7.09 5.15 6.78 6

Shah Brothers 10.1 9 12.1 11.67 13.9 14 20.1 15

SK Group 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25

Taj Auto Accessories 14 10.05 18.1 16.02 21.1 26 32 28

Tata motors 3.89 2.3 4.09 6.8 7 5 8 7.3

TVS 23 14.1 24 21.1 34 39 43 41.55

Viral Engineers 1.55 1.34 1.9 1.75 2.19 1.18 1.35 1.15

Yamaha 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6


Interpretation- As per the above data and graph we can analyze that from 2004-2008, the automobile companies witnessed increase in the sales. The automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their inventory i.e. Number of automobiles manufactured affected by global recession.

The reasons for decline in manufacturing of the automobile products are lack of workforce as few of the subsidiaries had to lay off their employees as a means of cost cutting. The production of automobiles had to be also reduced as the demand for it declined due to various factors like unemployment, increase in inflation rate and fall in Rupees.

0

50

100

61

Table: 6.1.14.2- Inventory (Parts of Automobiles i.e. spare parts) of the Automobile Companies during recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Parts of Automobiles i.e.

spare parts in tonnes Acey Engineering Private Limited

13 7.5 15 17 5 3.4 4.4 3.8


5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5

ALD Automotive 14 10.05 18.1 16.02 21.1 26 32 28

Amforge Industries Limited

13.89 12.3 14.09 16.8 11 13 18 14.3

Arval India 23 14.1 24 21.1 34 39 43 41.55

Ashok Leyland 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15

Asia MotorWorks Limited 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

Bharat Gears Limited 10.1 9 12.1 11.67 13.9 14 16 15

Bajaj 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Balu India 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12

CEAT Limited 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25


Conwest Private Limited 8 7 11.15 10.6 12.7 6 8.9 7

Eicher 0.6 0.45 1.7 0.7 5 6 8.25 7.15

Force Motors Limited 11.9 11 13.1 12.67 15 9.1 13 11

Hindustan Motors 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Hero Honda 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

Kinetic motors 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89


7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59

Kumar Auto Sales 10 9 12.15 11.6 12.7 6 8.9 7


0.6 0.45 1.7 0.7 5 4 7.25 7.15

Maruti Udyog 1.55 1.34 1.9 1.75 2.19 0.78 1.25 1.15

MRF 2.08 1.05 5.09 4.1 7.09 5.15 6.78 6

Shah Brothers 10.1 9 12.1 11.67 13.9 14 16 15

SK Group 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25

Taj Auto Accessories 14 10.05 18.1 16.02 21.1 26 32 28

Tata motors 3.89 2.3 4.09 6.8 7 5 8 7.3

TVS 23 14.1 24 21.1 34 39 43 41.55

Viral Engineers 1.55 1.34 1.9 1.75 2.19 1.18 1.35 1.15

Yamaha 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6


Interpretation- As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their inventory- spare parts of the automobile companies were affected by global recession.

There was decline in manufacturing spare parts of the automobile products due to lay off the employees as a means of cost cutting. The production of automobiles had to be also reduced as the demand for it declined due to various factors like unemployment, increase in inflation rate and fall in Rupees. The increase in spare parts and tools consumed is due to higher level of production. The publicity expenses have increased mainly on account of new product introduction.

0

50

63

Table: 6.1.15- Equity of the Automobile companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Equity of the



38.23 35.12 45 43.15 50.12 46.15 50.15 48.25


30.16 28.56 37.15 33.28 38.26 35.16 43.27 40.16

ALD Automotive 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Amforge Industries Limited

32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Arval India 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17

Ashok Leyland 26.25 23.18 38.26 30.16 37.15 33.28 36.6 35.52

Asia MotorWorks Limited 112.68

45.86 48.04 134.08

56.98 124 152.15

152.67 Bharat Gears Limited 55.21 53.15 63.45 58.25 77.44 51.22 55.15 52.4

Bajaj 12.89 10.78 17.78 13 17.14 8.15 12.5 13.89

Balu India 115 113 148 136 159 124 146 135

CEAT Limited 23.14 17.8 19.14 18.78 20.35 11.78 15 13.9



Eicher 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28

Force Motors Limited 145 123 178 156 189 134 150.23

144

Hindustan Motors 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1

Hero Honda 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25

Kinetic motors 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2


33.5 30.15 42.4 42.15 32.75 35.56 52.24 48.27

Kumar Auto Sales 167.78

112.78

167.09

148.78

158.07 143.09

149 147.89 Mahindra and Mahindra

limited 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25

Maruti Udyog 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2

MRF 180.09

179 210.13

198.78

215.78 176.19

229.79

218.78 Shah Brothers 28.54 25 32.52 30.25 38.25 36.23 43.6 40.25

SK Group 32.57 28.65 42.35 40.26 33.15 37.47 50.25 45.2


Tata motors 138 133 147.15

146.15

150 165.1 183.1 175.1

TVS 27.35 23.44 30.16 29.23 32 30.18 33.06 32.59

Viral Engineers 27.14 25.78 28.36 27.37 28.45 25.2 30.25 28.45

Yamaha 30.15 29.34 31.9 31.47 32.59 28.25 32.52 30.25


Interpretation- As per the above data and graph we can analyze that the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their equity affected by global recession.

The operations of the Automobile sector from 2004-2010 vary mainly due to global recession in 2009 which sent threat waves to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market.

0

200

400

600

800

65

H0: 1. Performance of the selected Automobile companies has not affected by

Global Recession.

Parametric Test-T test

Table: 6.1.16.1- Hypothesis results of Parametric T Test Statistics - Performance

of the selected Automobile companies has not affected by Global Recession

T Test Statistics

Particulars Table Value=30

Mean Differe

nce

Standard

Deviation

Difference df

Calculated Statistic T Value at

95% confidence

level

Tabulated T

Value at 95%

confidence level

Budget of the Automobile Companies 0.4 2.058 29 1.1975 2.045 Procurement of Raw materials of Automobile Companies 0.29 3.67 29 0.425 2.045 Production of the Automobile Companies 0.23 12.0 29 0.623 2.045 Sales of the Automobile Companies 0.59 2.66 29 1.132 2.045 Net profit of the Automobile Companies 0.59 4.57 29 0.59 2.045 Taxes paid by the Automobile Companies 2.63 14.5 29 1.00 2.045 Changes in the number of employees of the Automobile Companies

50.27

309.6

29

1.045

2.045

Total Assets of the Automobile Companies 6.065 33.75 29 0.99 2.045 Total Liabilities of the Automobile Companies 5.37 29.54 29 0.99 2.045 Investments of the Automobile Companies 2.467 19.13 29 0.685 2.045 Performance of shares/ stocks of Automobile companies 2.78 14.71

Exports of the Automobile companies 1.97 10.89 29 0.980 2.045

Imports of the Automobile companies 4.4 24.9 29 0.987 2.045 Number of Automobiles manufactured of the Automobile companies 1.39 7.62

29

1.0025

2.045

Parts of Automobiles i.e. spare parts of the Automobile Companies 1.3625 7.52

29

1

2.045

Equity of the Automobile companies 4.31 23.65 29 0.976 2.045 Source: Collected through Questionnaires and Interview method

Interpretation- The hypothesis results of Parametric T test of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha are as follows:

Since the calculated statistic T value at 5% level of significance is less than the Tabulated T value 2.045 for all the parameters (Budget ,Procurement of Raw materials of Automobile Companies, Production of the Automobile Companies, Net profit, Tax paid is lesser than the table value, Changes in number of employees, Assets, liabilities, Investments of the Automobile ,Performance of shares/ stocks of Automobile Companies, Exports of the Automobile Companies, Imports of the Automobile Companies, Number of automobiles manufactured, Parts of Automobiles i.e. spare parts and equity). Hence we accept H0 and conclude that Performance of the selected Automobile companies has not affected by Global Recession.

66

Non Parametric Test- Chi Square Test

Table: 6.1.16.1.1 – Hypothesis Results of Non Parametric Chi –Square Test

Statistics - Performance of the selected Automobile companies has not affected

by Global Recession

Chi square Test Statistics

Particulars

Calculated Statistic Chi square Value

at 95% confidence

level Df

Tabulated Chi square

value at 95%

confidence level

Budget of the Automobile Companies 0.7495 29 17.708 Procurement of Raw materials of Automobile Companies 0.534 29 17.708 Production of the Automobile Companies 0.499 29 17.708 Sales of the Automobile Companies 0.647 29 17.708 Net Profit of the Automobile Companies 0.501 29 17.708 Taxes paid by the Automobile Companies 0.4225 29 17.708 Changes in the number of employees of Automobile Companies 0.0000 29 17.708 Total assets of the Automobile companies 0.03225 29 17.708 Total liabilities of the Automobile companies 0.250 29 17.708 Investments of the Automobile Companies

0.0721 29 17.708 Performance of shares/ stocks of Automobile companies 0.0105 29 17.708 Exports of the Automobile companies 0.0697 29 17.708 Imports of the Automobile companies 0.00135 29 17.708 No. of automobiles manufactured 0.4995 29 17.708 Parts of Automobiles i.e. spare parts 0.50257 29 17.708 Equity of the Automobile companies 0.25025 29 17.708 Source: Collected through Questionnaire and Interview Method Interpretation- The hypothesis results of Non Parametric Chi-Square Test of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha are as follows: Since the calculated statistic Chi Square value at 5% level of significance is less than the Tabulated Chi square value 17.708 for all the parameters Impact of Budget, Procurement of Raw materials, Production, Sales, Net Profit, and Taxes paid, Changes in the number of employees. Total assets, Total liabilities, Investments, Performance of shares/ stocks, Exports, Imports, No. of automobiles manufactured, Parts of Automobiles i.e. spare parts and Equity). Hence we accept H0 and conclude that Performance of the selected Automobile companies has not affected by Global Recession.

67

2. To understand the current overall automobile companies’ situation and to

study that how can it be improved in future?

Table: 6.1.17- Growth of Automobile companies during Global recession

Name of the Automobile Companies Growth of Automobile companies during Global recession

Before recession* After recession** Acey Engineering Private Limited 5 4

Agra Engineering Company 5 2

ALD Automotive 5 1

Amforge Industries Limited 5 3

Arval India 5 2

Ashok Leyland 2 2

Asia MotorWorks Limited 2 3

Bharat Gears Limited 2 5

Bajaj 5 4

Balu India 2 5

CEAT Limited 5 5

Ceekay Daikin Limited 2 5

Conwest Private Limited 2 4

Eicher 4 5

Force Motors Limited 5 1

Hindustan Motors 4 5

Hero Honda 4 4

Kinetic motors 4 4


4 4

Kumar Auto Sales 1 4

Mahindra and Mahindra limited 5 1

Maruti Udyog 5 2

MRF 3 1

Shah Brothers 5 3

SK Group 5 4

Taj Auto Accessories 5 1

Tata motors 5 4

TVS 2 4

Viral Engineers 2 4

Yamaha 2 4 Source: Collected through Questionnaire and Interview Method

****Parameters of Growth Before recession (Parameters of Growth Before recession (Parameters of Growth Before recession (Parameters of Growth Before recession (1 stands for Significantly decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly increasing).

**Parameters of **Parameters of **Parameters of **Parameters of Growth after recessionGrowth after recessionGrowth after recessionGrowth after recession(1 stands for Significantly negative impact, 2 stands for Slightly negative impact, 3 stands for No impact, 4 stands for Slightly positive impact and 5 stands for Significantly positive impact).

68

Figure: 6.1.16- Growth of Automobile Companies before Global recession

Figure: 6.1.17- Growth of Automobile Companies After recession

Interpretation- As per the above data and graph we can analyze that most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, CEAT Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had their Growth affected by global recession compared to the previous year’s 2004-2008 and also can see few of these automobiles growing or improving after recession. Before the global recession we can see that Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Bajaj, CEAT Limited, Force Motors Limited, Mahindra and Mahindra limited, Maruti Udyog, Shah Brothers, SK Group Taj Auto Accessories and Tata motors have significantly increasing. Ashok Leyland, Asia Motor Works Limited, Balu India, Bharat Gears Limited, Ceekay Daikin Limited, Conwest Private Limited, TVS, Viral Engineers and Yamaha have attained breakeven. MRF has not been affected by recession in terms of growth. Eicher ,Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited shows fluctuations. Kumar Auto Sales shows significantly decreasing in growth. The automobile companies Acey Engineering Private Limited, Bajaj, Conwest Private Limited, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, SK Group, Tata motors, TVS, Viral Engineers and Yamaha had slightly positive impact on their growth after recession. The automobile companies Amforge Industries Limited, Asia Motor Works Limited and Shah Brothers had no impact on the growth after recession. The rest of the automobile companies had significantly positive impact on their growth after recession.

0

1

2

3

4

5

6

Growth of Automobile companies before Global recession

Significantly decreasing

Attained breakeven

No change

Fluctuations

Significantly Increasing

Growth before recession

Name of theAutomobile Companies

0

1

2

3

4

5

6

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Growth of Automobile companies after Global recession

Series9

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Series7

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Significantly positive impact

Name of the automobilecompanies

Growth After recession

69

Table: 6.1.18- Levels of Production of Automobile Companies affected by Global recession

Name of the Automobile Companies Levels of Production of Automobile Companies affected by Global recession

Before Recession* After Recession** Acey Engineering Private Limited 5 4 Agra Engineering Company 5 2 ALD Automotive 5 5 Amforge Industries Limited 5 3 Arval India 5 2 Ashok Leyland 2 2 Asia MotorWorks Limited 2 3 Bharat Gears Limited 2 5 Bajaj 5 4 Balu India 2 5 CEAT Limited 5 5 Ceekay Daikin Limited 2 5 Conwest Private Limited 2 4 Eicher 4 5 Force Motors Limited 5 5 Hindustan Motors 4 5 Hero Honda 4 5 Kinetic motors 4 5 KLT Automotive and Tubular Products 1 5 Kumar Auto Sales 4 5 Mahindra and Mahindra limited 5 5 Maruti Udyog 5 2 MRF 1 1 Shah Brothers 5 3 SK Group 5 4 Taj Auto Accessories 5 1 Tata motors 5 5 TVS 2 1 Viral Engineers 2 1 Yamaha 2 1


****Parameters of Levels of production before recession (Parameters of Levels of production before recession (Parameters of Levels of production before recession (Parameters of Levels of production before recession (1 stands for Significantly decreasing 2 stands for Attained Break even, 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly increasing)

* *Parameters of Levels of production after recession (*Parameters of Levels of production after recession (*Parameters of Levels of production after recession (*Parameters of Levels of production after recession ( 1 stands for Worse Affected, 2 stands for Strongly affected, 3 stands Somewhat affected,4 stands for Badly Affected and 5 stands for Not Affected.

Global recession

Figure: 6.1.19- Levels of Production of Automobile Companies after Global recession

Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha gives the picture of levels of production before and after recession. Before recession most of the companies had significantly increase in their growth.

The after recession data and graph depicts that the worse affected automobile companies are, MRF, Tata motors, TVS, Viral Engineers and Yamaha. Agra Engineering Company, Arval India, Ashok Leyland and Maruti Udyog were strongly affected.

Asia MotorWorks Limited, Amforge Industries Limited and Shah Brothers were somewhat affected. The automobile companies Acey Engineering Private Limited, Bajaj, Conwest Private Limited and SK Group were badly affected. The rest of the automobile companies were not affected by recession.

71

Table: 6.1.19- Role of Branding on Automobile Companies during Global recession

Source: Collected through Questionnaires and Interview method *Parameters of Role branding before and *Parameters of Role branding before and *Parameters of Role branding before and *Parameters of Role branding before and after recessionafter recessionafter recessionafter recession ((((1 stands for Yes and 2 stands for No).

Name of the Automobile companies Role of Branding on Automobile Companies during Global recession

Before Recession* After recession* Acey Engineering Private Limited 2 1 Agra Engineering Company 2 1 ALD Automotive 2 1 Amforge Industries Limited 2 1 Arval India 1 1 Ashok Leyland 2 1 Asia Motor Works Limited 1 1 Bharat Gears Limited 1 1 Bajaj 1 2 Balu India 1 1 CEAT Limited 1 1 Ceekay Daikin Limited 1 1 Conwest Private Limited 1 1 Eicher 1 2 Force Motors Limited 1 2 Hindustan Motors 1 1 Hero Honda 1 1 Kinetic motors 1 1 KLT Automotive and Tubular Products 1 1 Kumar Auto Sales 1 1 Mahindra and Mahindra limited 1 1 Maruti Udyog 2 1 MRF 2 1 Shah Brothers 1 1 SK Group 1 1 Taj Auto Accessories 1 1 Tata motors 1 1 TVS 1 1 Viral Engineers 1 1 Yamaha 1 1

Interpretation- The above data and graph of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS , Viral Engineers and Yamaha depict the role of branding before and after recession. Before recession excluding Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Ashok Leyland Company Maruti Udyog and MRF, the rest of the companies felt the

small scale i.e. not religiously but casually. Most of these automobile companies Amforge Industries Limited, Arval India , Bharat Gears Limited , Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha strongly agree that branding plays important role in building a company and after recession it has become compulsory for the company to earn their image.

73

Table: 6.1.20- Role of Media on Automobile Companies during Global recession

Name of the Automobile companies

Role of Media on Automobile Companies during Global recession

Before Recession* After Recession* Acey Engineering Private Limited 2 1


ALD Automotive 1 1


Arval India 1 1

Ashok Leyland 1 1



Bajaj 2 1

Balu India 2 1

CEAT Limited 1 1



Eicher 1 1



Hero Honda 1 1

Kinetic motors 1 1


1 1



Maruti Udyog 1 1

MRF 1 2

Shah Brothers 1 1

SK Group 1 2


Tata motors 1 1

TVS 1 1

Viral Engineers 1 1

Yamaha 2 1

Source: Collected through Questionnaires and Interview method *Parameters of Role Media before and after recession (*Parameters of Role Media before and after recession (*Parameters of Role Media before and after recession (*Parameters of Role Media before and after recession (1 stands for Yes and 2 stands for No)

Interpretation- As per the above data and graph we can analyze that the most of these automobile companies Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha before recession also utilized the media for their promotions of products. Due to the Global recession most of the automobile companies had their sales and production affected. After

Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, Shah Brothers, Taj Auto Accessories, Tata motors, TVS ,Viral Engineers and Yamaha agree that Media plays important role in building the brand image during recession. For those companies which have lost their production and sales due to global recession. Bajaj and MRF do not agree that Role of media is important.

75

Table: 6.1.23- Challenges faced by the Automobile companies during Global recession

Name of the Automobile companies Challenges faced by Automobile companies during Global recession

Decrease in Impo

rts

Decrease in Expo

rts

Fiscal Aid

Getting Transport

service

Problem faced in

Managing Human

resources Acey Engineering Private Limited 1 2 3 4 5 Agra Engineering Company 1 2 0 4 5 ALD Automotive 1 2 3 4 0 Amforge Industries Limited 1 2 3 4 5 Arval India 1 0 3 4 5 Ashok Leyland 1 2 3 4 5 Asia MotorWorks Limited 1 0 3 4 5 Bharat Gears Limited 1 2 3 4 5 Bajaj 1 0 0 0 5 Balu India 1 2 3 4 5 CEAT Limited 1 2 0 4 5 Ceekay Daikin Limited 1 2 3 4 5 Conwest Private Limited 1 2 3 4 5 Eicher 1 2 3 4 5 Force Motors Limited 1 2 3 4 5 Hindustan Motors 1 2 3 4 5 Hero Honda 1 2 3 4 5 Kinetic motors 1 2 3 4 5 KLT Automotive and Tubular Products Limited

1 2 3 4 5 Kumar Auto Sales 1 2 3 4 5 Mahindra and Mahindra limited 1 2 3 4 5 Maruti Udyog 1 2 3 4 5 MRF 1 2 3 4 5 Shah Brothers 0 2 3 4 5 SK Group 1 2 0 4 5 Taj Auto Accessories 1 2 3 4 5 Tata motors 1 2 3 4 5 TVS 1 2 3 4 5 Viral Engineers 1 2 3 4 5 Yamaha 1 2 3 4 5


Interpretation- The above data and graph provides us the picture of what challenges did these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited, Bajaj, Balu India, Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha faced during the recession. Most of the automobile companies faced challenges in getting Fiscal Aid from the Financial Institutions, Getting Transport service, Decrease in Imports, Decrease in Exports, and Problem faced in Managing Human resources. Though the price of raw materials had been decreased, the transportation was difficult as most of the existing drivers and labour force denied to work because they were forced to work with less pay with no hike. Many other workforce were laid off by their respective companies in the name of cost cutting so the transportation and managing Human resources became a major challenge to the automobile sector. The production was also affected so there was decrease in imports and exports. Even getting fiscal aid also became difficult as the financial institutions themselves were running shortage of

77

H0: 2. There is no considerable difference in the development of Automobile

companies during the recession period.

Parametric Test- T- test

Table: 6.1.22.1 - Hypothesis results of Parametric T Test Statistics- There is no

considerable difference in the development of Automobile companies during the

recession period.

T- Test Statistics

Particulars Test Value = 30

Mean Difference

Standard

Deviation

Difference

df

Calculated Statistic T Value at

95% confidence

level

Tabulated T

Value at 95%

confidence level

Growth of Automobile companies 0.433 2.2997 29 1.0319 2.045 Levels of Production 0.066 1.9464 29 0.1866 2.045 Role of Branding on Automobile Companies 0.133 0.5714 29 1.2707 2.045 Role of Media on automobile companies 0.033 0.490 29 0.3691 2.045


Interpretation- The hypothesis results of Parametric T Test of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS , Viral Engineers and Yamaha are as follows:

Since the Calculated Statistic T Value at 5% level of significance is less than the Tabulated T value 2.045 for all the parameters Growth of Automobile companies, levels of production, Role of Branding and Role of Media before and after Global recession. Hence we accept H0 and conclude that there is no considerable difference in the development of Automobile companies during the recession period.

78

Non Parametric test- Chi square test

Table: 6.1.22.1.1-Hypothesis Results of Non Parametric Chi –Square Test

Statistics - There is no considerable difference in the development of Automobile

companies during the recession period.

Chi Square Test Statistics

Particulars

Test Value = 30 Calculated

Statistic Chi square Value at 95% confidence

level Df


Value at 95% confidence

level Growth of Automobile companies 0.00037355 29 17.708 Levels of Production 0.01928087 29 17.708 Branding on Automobile Companies 0.99992469 29 17.708 Role of Media on Automobile Companies 0.99999614 29 17.708


Interpretation- The hypothesis results of Non Parametric Chi-Square Test of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS , Viral Engineers and Yamaha are as follows:

Since the calculated statistic Chi square value at 5% level of significance is less than the Tabulated Chi square value 17.708 for all the parameters Growth of Automobile companies, levels of production, Role of Branding and Role of Media before and after Global recession. Hence we accept H0 and conclude that there is no considerable difference in the development of Automobile companies during the recession period.

79

3. To take a stock of Government policies to know its effect on recession.

Table: 6.1.23- Impact of budgetary policies on Automobile Companies during Global Recession

Name of the Automobile companies Impact of budgetary policies on Automobile Companies during Global recession

Before Recession* After Recession* Acey Engineering Private Limited 1 1 Agra Engineering Company 1 1 ALD Automotive 1 1 Amforge Industries Limited 1 1 Arval India 1 1 Ashok Leyland 1 2 Asia MotorWorks Limited 1 1 Bharat Gears Limited 2 1 Bajaj 1 2 Balu India 1 1 CEAT Limited 1 1 Ceekay Daikin Limited 1 1 Conwest Private Limited 2 1 Eicher 2 1 Force Motors Limited 1 1 Hindustan Motors 1 1 Hero Honda 1 1 Kinetic motors 1 1 KLT Automotive and Tubular Products 1 1 Kumar Auto Sales 1 1 Mahindra and Mahindra limited 1 2 Maruti Udyog 1 1 MRF 2 1 Shah Brothers 1 1 SK Group 1 1 Taj Auto Accessories 1 1 Tata motors 1 1 TVS 1 1 Viral Engineers 1 1 Yamaha 1 1

Source: Collected through Questionnaires and Interview method *Parameters Parameters Parameters Parameters Impact of budgetary policies on Automobile Companies before and after recession Impact of budgetary policies on Automobile Companies before and after recession Impact of budgetary policies on Automobile Companies before and after recession Impact of budgetary policies on Automobile Companies before and after recession (1 stands for Yes and 2 stands for No).

Interpretation- The above data and graphs shows the impact of budgetary polices before and after recession on these automobile companies are as follows: These automobile companies before recession show that Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had somewhat impact of budgetary polices on them. After recession Ashok Leyland, Bajaj and

For the rest of the automobile sector the budgetary policies have provided relief as the new automotive policies were announced. The policies were hundred percent foreign direct investments for automobile sector. The increase in levying customs duty on cars and multi utility vehicle has encouraged the domestic manufactures, created value addition and employment. In due course to as an initiative Government of India projects to manufacture fuel efficiency vehicles that consume less petrol and run on electricity.

81

Table: 6.1.27- Impact of Global Recession on new projects of Automobile Companies

Name of the Automobile companies Yes No Acey Engineering Private Limited 0 2 Agra Engineering Company 1 0 ALD Automotive 1 0 Amforge Industries Limited 1 0 Arval India 1 0 Ashok Leyland 1 0 Asia MotorWorks Limited 1 0 Bharat Gears Limited 1 0 Bajaj 1 0 Balu India 1 0 CEAT Limited 1 0 Ceekay Daikin Limited 0 2 Conwest Private Limited 1 0 Eicher 1 0 Force Motors Limited 0 2 Hindustan Motors 1 0 Hero Honda 1 0 Kinetic motors 1 0 KLT Automotive and Tubular Products Limited 1 0 Kumar Auto Sales 0 2 Mahindra and Mahindra limited 0 2 Maruti Udyog 1 0 MRF 0 2 Shah Brothers 1 0 SK Group 1 0 Taj Auto Accessories 1 0 Tata motors 1 0 TVS 1 0 Viral Engineers 0 2 Yamaha 1 0


*Parameters Parameters Parameters Parameters Impact of Impact of Impact of Impact of Global recession on Global recession on Global recession on Global recession on new projects of Automobile Companies new projects of Automobile Companies new projects of Automobile Companies new projects of Automobile Companies (1 stands for Yes and 2 stands for No).

Interpretation - The above data and graph depicts the impact of recession on future projects of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha.

These companies Acey Engineering Private Limited, Ceekay Daikin Limited, Force Motors Limited, Kumar Auto Sales Mahindra and Mahindra and MRF did not have any impact of recession on their new projects. The rest of the automobile companies had their new projects postponed due to the slowdown of the economy, shortage of funds and other challenges like getting Fiscal Aid from the Financial Institutions, Getting Transport service, Decrease in Imports, Decrease in Exports, and Problem faced in Managing Human resources.

0

0.5

1

83

Table: 6.1.25- Impact of rates on raw materials during Global recession

Name of the Automobile Companies Impact of rates on raw materials during Global recession

Before recession* After Recession** Acey Engineering Private Limited 2 1 Agra Engineering Company 2 1 ALD Automotive 2 1 Amforge Industries Limited 3 1 Arval India 2 1 Ashok Leyland 2 1 Asia MotorWorks Limited 2 1 Bharat Gears Limited 2 3 Bajaj 3 1 Balu India 3 5 CEAT Limited 2 1 Ceekay Daikin Limited 2 3 Conwest Private Limited 3 2 Eicher 1 2 Force Motors Limited 3 2 Hindustan Motors 4 1 Hero Honda 4 2 Kinetic motors 4 2 KLT Automotive and Tubular Products Limited

4 2 Kumar Auto Sales 5 2 Mahindra and Mahindra limited 2 2 Maruti Udyog 2 5 MRF 2 5 Shah Brothers 3 2 SK Group 3 4 Taj Auto Accessories 1 4 Tata motors 1 1 TVS 1 1 Viral Engineers 1 1 Yamaha 1 1


*Parameters of Impact of rates on raw materials before recession (*Parameters of Impact of rates on raw materials before recession (*Parameters of Impact of rates on raw materials before recession (*Parameters of Impact of rates on raw materials before recession (1 stands for 10%, 2 stands for 15%, 3 stands for 20%, 4 stands for 25% and 5 stands for 30%).

* *Parameters o* *Parameters o* *Parameters o* *Parameters of Impact of rates on raw materials after recession (f Impact of rates on raw materials after recession (f Impact of rates on raw materials after recession (f Impact of rates on raw materials after recession (1 stands for 5%, 2 stands for 10%, 3 stands for 12%, 4 stands for 15% and 5 stands for 17%).

Interpretation- Most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and

Yamaha had impact on the rates of raw materials before and after recession. The rates on raw materials before recession was exhoboraint as the suppliers were providing commissions to their retailers and also discounts to their regular customers. As per data the rates on raw materials after recession was less as most of the suppliers had to shut down their units as they could not afford to give commissions to their retailers and also discounts to their regular customers. Hence government had to reduce the rates on raw materials for the uplift of the people of the country during the recession.

85

Table: 6.1.26- Risk of second recession on Automobile Companies

Name of the Automobile companies Yes No Acey Engineering Private Limited 1 0


ALD Automotive 1 0


Arval India 1 0

Ashok Leyland 1 0



Bajaj 1 0

Balu India 0 2

CEAT Limited 1 0



Eicher 1 0



Hero Honda 1 0

Kinetic motors 1 0

KLT Automotive and Tubular Products Limited 0 2



Maruti Udyog 1 0

MRF 1 0

Shah Brothers 1 0

SK Group 1 0


Tata motors 0 2

TVS 1 0

Viral Engineers 1 0

Yamaha 1 0


*Parameters Parameters Parameters Parameters Risk of second recession onRisk of second recession onRisk of second recession onRisk of second recession on Automobile Companies Automobile Companies Automobile Companies Automobile Companies ((((1 stands for Yes and 2 stands for No).

Interpretation- The above data and graph give a picture of risk of having second recession on these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS , Viral Engineers and Yamaha.

There are chances of risk of having second recession which might wipe out many companies of automobile sector.

0

0.5

1

1.5

87

H0: 3. There is no impact of Government Policies to minimize the effect of

Global Recession on Indian Automobile companies.


Table: 6.1.27.1- Hypothesis results of Parametric T Test Statistics- There is no

impact of Government Policies to minimize the effect of Global Recession on

Indian Automobile companies.

T Test Statistics


Mean Difference

Standard Deviation Difference df

Calculated Statistic T

value at 95% confidence

level

Tabulated T Value at 95%

confidence level

Impact of budgetary policies on Automobile Companies

0.066

0.4490

29

0.8084

2.045

Impact of Global Recession on new projects of Automobile Companies

0.3

1.2905

29

1.2664

2.045

Impact of rates on raw materials on Automobile Companies

0.366

1.6501

29

1.2104

2.045

Risk of Second Recession on Automobile Companies

0.4

1.2205

29

1.79500

2.045


Interpretation- The hypothesis results of Parametric T Test of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited ,Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha are as follows.

Since the calculated statistic T value at 5% level of significance less than the Tabulated T value 2.045 for all the parameters Impact of Budgetary policies, impact on new projects, Impact of Rates on raw materials during Global recession and Risk of second recession. Hence we accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian Automobile companies.

88

Non Parametric Test- Chi-Square Test

Table-6.1.27.1.1- Hypothesis Results of Non Parametric Chi Square Test

Statistics- There is no impact of Government Policies to minimize the effect of

Global Recession on Indian Automobile companies


Particulars

Test Value = 30

Calculated statistic Chi square

Value at 95% confidence level df

Tabulated Chi Square Value at 95% confidence

level Impact of budgetary policies on Automobile Companies

0.036170822

29

17.708

Impact of rates on raw materials on Automobile Companies

0.999999457

29

17.708


Interpretation- The hypothesis results of Non Parametric Chi-Square Test of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited ,Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha are as follows.

Since the calculated statistic Chi square value at 5% level of significance less than the Tabulated Chi square value 17.708 for the parameters Impact of Budget and Impact of Rates on raw materials during global recession. Hence we accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian Automobile companies.


Figure: 6.1.31.1- Overall Economy of the Automobile Sector with respect to the Performance of Automobile Companies

0

500

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Parameters Budget 6.17 7.20 8.15 9.08 10.08 7.79 9.13 10.14 Procurement 6.75 8.95 10.35 11.53 14.56 13.23 12.27 13.96 Production 5.63 7.99 9.38 10.30 12.78 12.05 12.45 13.83 Sales 5.01 7.00 8.40 9.30 11.61 10.16 10.57 11.77 Net Profit 7.40 9.35 11.88 13.25 18.84 7.29 15.19 16.54 Taxes paid 10.49 12.11 13.33 16.02 17.94 14.38 15.15 17.83 Number of Employees 211 246 274 307 362 232 257 293

Total Assets 17.71 25.94 26.40 29.91 33.19 24.77 29.32 33.41 Total Liabilities 25.45 31.57 36.36 40.71 43.18 35.52 37.03 40.32 Investments 11.04 14.34 17.27 19.29 21.03 17.55 20.89 21.51 Performance of shares/ stocks 17.07 20.28 22.33 26.13 26.72 24.85 29.4 31.66 Exports 6.77 9.52 11.27 13.59 15.69 13.85 14.93 15.99 Imports 21.05 25.40 25.93 30.57 31.55 24.72 29.31 31.6 Number of automobiles manufactured

5.63 7.99 9.38 10.30 12.78 12.05 12.45 13.83

Parts of Automobiles i.e. spare parts

5.78 8.31 9.86 10.65 12.78 12.05 12.45 13.83

Equity 45.56 53.49 58.02 59.15 60.21 55.36 62.70 66.07

Parameters Gro

wth before

recession

Growth afte

r recession

Levels of

Production before

recession

Levels of

Production afte

r Global recession

Role of

Brandin

g before

recession

Role of

Branding on A after recession

Role of

Media

before

recession

Role of

Media

after recession

Challenges

faced by Automobile

companies

Impact of Budgetary polici

es befor

e recess

ion

Impact of

Budgetary

policies

after recession

Impact of

global recess

ion on

new projects

Impact of

rates on raw material

s before

recession

Impact of

rates on raw material

s afte

r recession

Risk of

second recessi

on

Parameters

Significantly Decreasing

0.03 0.06

Attained breakeven 0.60 0.6

No change 0.1 0

Fluctuations 0.66 0.66


2.33 2.33

Significantly negative impact

0.13

Slightly negative impact

0.26

No impact 0.3

Slightly positive impact

1.46


0.1

Worse affected 0.16

Strongly affected 0.26

Somewhat affected 0.2

Badly affected 0.53

Not affected 2.33

Yes 0,76 0.9 0.83 0.93 0.86 0.9 0.79 1.548

No 0.23 0.2 0.33 0.13 0.26 0.2 0.46 0.744

Decrease in Imports 0.96

Decrease in Exports 1.8

Fiscal Aid 2.6

Getting Transport service

3.86

Problem faced in Managing Human resources

4.83

10% 0.2 0.6

15% 0.8

20% 0.7

25% 0.53

30% 0.16

5% 0.46

12% 0.2

15% 0.26

17% 0.5


Interpretation- The overall economy of the Automobile Sector can be depicted by analyzing the above data and graph of the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Ashok Leyland, Asia Motor works, Bharat Gears Limited, Bajaj, Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, MRF, Shah Brothers, SK Group, Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha. The reduction of budget of the automobile companies was due to the economy and current market conditions that resulted in the financial forecast of the companies. The alterations in the rates of inflation and conditions of the share market have

these automobile companies relied heavily on investments. These investments’ were assumed as a funding vehicle and the poor stock market performance had negative effect on budget predictions. The changes in the legislature policies creates difficult for the companies in giving projections of budget. In most cases, if the businesses or industries are aware of pending legislation then they can plan accordingly before preparing the budget. Sometimes, just the introduction of future legislation can disrupt the budget projections. Due to global recession the supporting companies including first-tier, second-tier and third-tier suppliers could not provide various materials like metals, plastics, rubber, glass and fibers required in preparation and processing of the demand to complete the order of manufacturing the automobiles. The automobile companies could not produce enough goods to satisfy the demand as the price of procurement was more than the profit of selling the

0

2

4

6

8

Overall Economy of the Automobile Sector with respect to the development through Initiatives taken by Indian Government

Growth of Automobile companies recessionGrowth of Automobile companies after recessionLevels of Production affected before Global recession Levels of Production affected after Global recession Role of Branding on Automobile Companies before recession Role of Branding on Automobile Companies after recession Role of Media on Automobile Companies before recession Role of Media on Automobile Companies after recession Challenges faced by Automobile companies during the recessionImpact of Budget on Automobile Companies before recessionImpact of Budget on Automobile Companies after recessionImpact of Global recession on new projects of Automobile Companies Impact of rates on raw materials before recession Impact of rates on raw materials after recessionRisk of second recession on Automobile Companies

Parameters

Parameters

affected as most of the commercial vehicles producing firms could not export their vehicles in expected countries. Due to sliding economy that affected the Indian automobile industry with decrease in activity of selling and many joint stakes were being put on hold. The lack of finance and emerging interest rates were making the consumers to avoid from buying vehicles. The Japanese automobile firms like Toyota Motors and Honda Motor Company had to cut on their activities that led in the slashing of their production by thirty percent in 2009.The firm's Indian sales and production plant which is based in Bangalore had halted the production for eight days in a month. There was seven percent decline in sales due to emerging cost of the materials and a decelerating of rupee value. Even the India's largest automobile manufacturer Mahindra and Mahindra was not immunized which showed profit fall of twenty point six percent. The net profit of the automobile companies declined as sales of most of the companies were declined and many takeovers/acquisitions had to be put on hold. The high interest rates by the banks were preventing not only the consumers from buying vehicles but also owners to pay back their loans. Most of the automobile companies had to cut on their sales projections and also close down their outlets to rationalize the production costs. The taxes paid by the Automobile companies vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009. The change in number of employees in the Automobile sector during the recession was due to sudden reduction in creation of employment. The new appointees to the organizations were sent back home with advance three months salary due to company policy of cutting costs and salary of many employees were reduced by twenty percent of their actual salary. There

employment. The liabilities of automobile companies declined as they had reduced in borrowing funds from the banks and other financial institutions or from money lenders. Even banks were facing difficulties in getting funds from their customers. The size and high growth potential of the Indian car market has attracted several overseas players who have flourished their business in India. The Hyundai is the largest passenger car exporter and the second-largest car manufacturer in India. The company sold a total of six lakh vehicles in the year 2010–11. It further plans to invest dollar two fifty million by 2013. Nissan has doubled the production in its small car Micra to 500 units/day and further plans to invest dollar one billion in its plant located in India. The General Motors has expansion plans for its factory in Gujarat which is worth dollar two fifty million. Most of these automobile companies are the components of BSE auto exponent. The share or stock rates of these companies have been drastically fallen causing agnosticism. The reduction of sales and profits of these automobiles in terms of passenger and commercial vehicles that include two and four wheelers, the other factors include demand and supply of the auto products, reduction in labour force, falling rupee value and inflation. All these led in the decline in the performance of shares of these automobile companies. The exports from automobile constituents of India dropped to twenty five percent in the year 2012. It was due to the recession that hit Europe and Germany. As Europe imports thirty six percent of Indian automobile products. There is also tough competition with other Asian countries in the world market. If we look at China, its exports have raised from seventy three percent to dollar thirty nine billion. This creates pressure in pricing and delivery of the quality products thus reducing the margin of exports of auto products. The imports of auto products

With many domestic automotive industries calling for production cut to survive in the world market causing botheration to the automotive subsidiaries. The reasons for decline in manufacturing of the automobile products are lack of workforce as few of the subsidiaries had to lay off their employees as a means of cost cutting. The production of automobiles had to be also reduced as the demand for it declined due to various factors like unemployment, increase in inflation rate and fall in Rupees. There was decline in manufacturing spare parts of the automobile products due to lay off the employees as a means of cost cutting. The increase in spare parts and tools consumed is due to higher level of production. The publicity expenses have increased mainly on account of new product introduction. The operations of the Automobile sector from 2004-2010 vary mainly due to global recession in 2009 which sent threat waves to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market. Before the global recession we can see that Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India, Bajaj, CEAT Limited, Force Motors Limited, Mahindra and Mahindra limited, Maruti Udyog, Shah Brothers, SK Group Taj Auto Accessories and Tata motors have significantly increasing. Ashok Leyland, Asia Motor Works Limited, Balu India, Bharat Gears Limited, Ceekay Daikin Limited, Conwest Private Limited, TVS, Viral Engineers and Yamaha have attained breakeven. MRF has not been affected by recession in terms of growth. Eicher ,Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited shows fluctuations. Kumar Auto Sales shows significantly decreasing in growth. The automobile companies Acey Engineering Private Limited, Bajaj, Conwest Private

automobile companies Amforge Industries Limited, Asia Motor Works Limited and Shah Brothers had no impact on the growth after recession. The rest of the automobile companies had significantly positive impact on their growth after recession. Before recession most of the companies had significantly increase in their level of production. After recession data and graph depicts that the worse affected automobile companies are, MRF, Tata motors, TVS, Viral Engineers and Yamaha. Agra Engineering Company, Arval India, Ashok Leyland and Maruti Udyog were strongly affected. Asia MotorWorks Limited, Amforge Industries Limited and Shah Brothers were somewhat affected. The automobile companies Acey Engineering Private Limited, Bajaj, Conwest Private Limited and SK Group were badly affected. The rest of the automobile companies were not affected by recession Before recession excluding Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Ashok Leyland company Maruti Udyog and MRF, the rest of the companies felt the branding was not so important. Branding before recession was done in small scale i.e. not religiously but casually. Most of these automobile companies Amforge Industries Limited, Arval India , Bharat Gears Limited , Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha strongly agree that branding plays important role in building a company and after recession it has become compulsory for the company to earn their image. As per the above data and graph we can analyze that the most of these automobile companies Agra Engineering Company, ALD Automotive, Amforge Industries

Limited, Kumar Auto Sales, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha before recession also utilized the media for their promotions of products. Due to the Global recession most of the automobile companies had their sales and production affected. After recession the automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Balu India ,Ceekay Daikin Limited, Conwest Private Limited, Eicher, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, Shah Brothers, Taj Auto Accessories, Tata motors, TVS ,Viral Engineers and Yamaha agree that Media plays important role in building the brand image during recession. For those companies which have lost their production and sales due to global recession. Bajaj and MRF do not agree that Role of media is important. Most of the automobile companies faced challenges in getting Fiscal Aid from the Financial Institutions, Getting Transport service, Decrease in Imports, Decrease in Exports, and Problem faced in Managing Human resources. Though the price of raw materials had been decreased, the transportation was difficult as most of the existing drivers and labour force denied to work because they were forced to work with less pay with no hike. Many other workforce were laid off by their respective companies in the name of cost cutting so the transportation and managing Human resources became a major challenge to the automobile sector. The production was also affected so there was decrease in imports and exports. Even getting fiscal aid also became difficult as the financial institutions themselves were running

Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj Balu India ,Ceekay Daikin Limited, Force Motors Limited, Hindustan Motors, Hero Honda, Kinetic motors, KLT Automotive and Tubular Products Limited, Kumar Auto Sales, Mahindra and Mahindra limited, Maruti Udyog, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had somewhat impact of budgetary polices on them. After recession Ashok Leyland, Bajaj and Mahindra and Mahindra limited were not affected by the budgetary policies. For the rest of the automobile sector the budgetary policies have provided relief as the new automotive policies were announced. The policies were hundred percent foreign direct investments for automobile sector. The increase in levying customs duty on cars and multi utility vehicle has encouraged the domestic manufactures, created value addition and employment. In due course to as an initiative Government of India projects to manufacture fuel efficiency vehicles that consume less petrol and run on electricity. These companies Acey Engineering Private Limited, Ceekay Daikin Limited, Force Motors Limited, Kumar Auto Sales Mahindra and Mahindra and MRF did not have any impact of recession on their new projects. The rest of the automobile companies had their new projects postponed due to the slowdown of the economy, shortage of funds and other challenges like getting Fiscal Aid from the Financial Institutions, Getting Transport service, Decrease in Imports, Decrease in Exports, and Problem faced in Managing Human resources. Most of these automobile companies Acey Engineering Private Limited, Agra Engineering Company, ALD Automotive, Amforge Industries Limited, Arval India Ashok Leyland, Bharat Gears Limited , Bajaj

limited, Maruti Udyog, MRF, Shah Brothers, SK Group Taj Auto Accessories, Tata motors, TVS, Viral Engineers and Yamaha had impact on the rates of raw materials before and after recession. The rates on raw materials before recession was exhoboraint as the suppliers were providing commissions to their retailers and also discounts to their regular

units as they could not afford to give commissions to their retailers and also discounts to their regular customer. Hence government had to reduce the rates on raw materials for the uplift of the people of the country during the recession. There are chances of risk of having second recession which might wipe out many companies of automobile sector.

6.2 BANKING AND FINANCIAL INSTITUTIONS

The economic development of any country depends upon its healthy and wealthy

banking system. Banks play an important role in the development of the economy.

They provide loans and capital to the businesses, industry, agriculture and other

sectors of the country. The fall in the profits of the banks causes serious damage in

the emergence of economy of the nation. The existing recession around the world is

the result of financial crisis that emerged in United States. Few banks in the world

gave loans to their clients i.e. borrowers who were not eligible for loans as these

clients were already in loss. The whole banking industry of the world came in to

danger due to the trouble caused when the second class of borrowers failed to refund

their loans Most of the Banks around the world had to write off the fall in profits of

many borrowers. The impact of financial crisis in India was felt in terms of reduced

earnings from export, drastic decline in industrial growth and loss of jobs, rupee

depreciation, and decline in foreign exchange reserves and down turn in stock market.

Though the Indian banks were lucky to avert the initial bout of global recession as the

banks in India were not divulged to subprime lending. All the same, the second bout

of global recession stroked India severely. The credit crunch in the Indian domestic

market was caused due to the Lehman brothers’ break down that resulted in decline of

investments from the foreign institutions and obligated the banks and companies of

India to change their credit need from foreign sources to the domestic banking sector.

For the purpose of data analysis, ninety companies were selected. There are twenty

four questions framed in the form of questionnaire and these questions are divided

into three parts as per the objectives and hypothesis.

Table: 6.2. 29- Budget of the Banking and financial Institutions during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Budget of the Banking and

financial Institutions in Crores Abhyudaya Cooperative Bank Ltd 2.03 3.26 7.8 6.06 11.57 7.31 28.2 11.74 Allahabad 9.74 4.18 11.47 10.25 11.9 8.25 14.25 12.59 Axis Bank Limited 13.09 15.9 15.2 14.72 21 15.55 25.47 20.34 Bank Of India 55 75 1.5 0.27 80 67 62 57 Bank of Maharashtra 16.9 15.9 17.1 17.67 18.1 11.9 12.5 12 Canara Bank 14 10.05 18.1 16.02 21.1 26 32 28 Catholic Syrian Bank 0.6 0.45 1.7 0.7 35 10 0.25 0.15 Central Bank Of India 11.9 11 13.1 12.67 15 9.1 13 11 Citibank NA 0.078 0.67 0.38 0.68 1.9 35 0.5 0.48 Citigroup Private Bank 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89 Citizen Credit Bank 7.74 5.18 11.47 10.25 21.9 19.25 24.25 22.59 Corporation Bank 6.9 5.86 7.1 7.67 8.1 9.9 18 10 Dena Bank 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Deutsche Bank 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89 Development Credit Bank(DCB) 2.03 3.26 7.8 6.06 11.57 7.31 28.2 11.74 Export Import Bank Of India 11 10.05 15.1 14.02 11.1 6 22 18 HDFC Bank Ltd 13.09 15.9 15.2 14.72 21 15.55 25.47 20.34 ICICI Bank 13.89 12.3 14.09 16.8 11 13 23 21.3 Indian Overseas Bank 55 75 1.5 0.27 80 67 62 57 Indusind Bank Ltd 16.9 15.9 17.1 17.67 18.1 11.9 12.5 12 Industrial Development Bank of India Ltd (IDBI)

10.1 9 12.1 11.67 13.9 14 16 15

ING Vysa Bank 43 0.55 1.8 0.78 24 0.4 0.35 0.25 Kotak Mahindra Bank Ltd 14.9 12.9 16.1 15.67 17.1 11.9 15 13 LIC 7.74 5.18 11.47 10.25 21.9 19.25 24.25 22.59 Mahanagar Co-operative Bank Ltd 6.9 5.86 7.1 7.67 8.1 9.9 18 10 Mahindra Finance 23 14.1 24 21.1 34 39 43 41.55 NABARD 2.03 3.26 7.8 6.06 11.57 7.31 28.2 11.74 North Kanara GSB Cooperative Bank Ltd

0.32 0.75 1.5 0.27 55 0.45 0.4 0.35

Oriential Bank of Commerce 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Reserve Bank of India 16.9 15.9 17.1 17.67 18.1 11.9 12.5 12 Shamrao Vithal Co-operative Bank Ltd

27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25

SIDBI 14 10.05 18.1 16.02 21.1 26 32 28 SouthIndia Bank 0.6 0.45 1.7 0.7 35 10 0.25 0.15 State Bank Of India (SBI) 14.9 12.9 16.1 15.67 17.1 11.9 15 13 Syndicate Bank 0.078 0.67 0.38 0.68 1.9 35 0.5 0.48 Uco bank 7.74 5.18 11.47 10.25 21.9 19.25 24.25 22.59 Union Bank Of India 6.9 5.86 7.1 7.67 8.1 9.9 18 10 United Bank of India 23 14.1 24 21.1 34 39 43 41.55 Vijay Bank 29.74 13.18 31.47 30.25 31.9 28.25 34.25 32.59


97

Figure: 6.2.32- Budget of the Banking and Financial Institutions during Global

recession

Interpretation- The above data and graphs indicates that the Banking and financial institutions such as Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import, HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay had their budget affected.

The reduction of budget of Banking and financial institutions was due to the economy and current market conditions that affected the financial forecast of these institutions. The changes in the inflation rate and stock market conditions directly affected the organization's net worth and its ability to generate funds or loans. After 2009 there is slight improvement in the allocation of budget as many reforms were taken by Government of India through Reserve Bank of India.

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2004 2005 2006 2007 2008 2009 2010 2011

Budget

Name of the Banking and Financial Institutions

98

Table: 6.2.30-Sales of the Banking and financial Institutions during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Sales of the Banking and

financial Institutions in Crores Abhyudaya Cooperative Bank 13 7.5 15 17 5 3.4 4.4 3.8 Allahabad 13.89 12.3 14.09 16.8 11 13 18 14.3 Axis Bank Limited 10.1 9 12.1 11.67 13.9 14 16 15 Bank Of India 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12 Bank of Maharashtra 8 7 11.15 10.6 12.7 6 8.9 7 Canara Bank 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59 Catholic Syrian Bank 10 9 12.15 11.6 12.7 6 8.9 7 Central Bank Of India 0.6 0.45 1.7 0.7 5 4 7.25 7.15 Citibank NA 2.08 1.05 5.09 4.1 7.09 5.15 6.78 6 Citigroup Private Bank 10.1 9 12.1 11.67 13.9 14 16 15 Citizen Credit Bank 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25 Corporation Bank 14 10.05 18.1 16.02 21.1 26 32 28 Dena Bank 1.55 1.34 1.9 1.75 2.19 1.18 1.35 1.15 Deutsche Bank 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6 Development Credit Bank(DCB) 13 7.5 15 17 5 3.4 4.4 3.8 Export Import Bank Of India 14 10.05 18.1 16.02 21.1 26 32 28 HDFC Bank Ltd 10.1 9 12.1 11.67 13.9 14 16 15 ICICI Bank 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12 Indian Overseas Bank 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12 Indusind Bank Ltd (Hinduja) 8 7 11.15 10.6 12.7 6 8.9 7 Industrial Development Bank of India Ltd(IDBI)

0.6 0.45 1.7 0.7 5 6 8.25 7.15

ING Vysa Bank 11.9 11 13.1 12.67 15 9.1 13 11 Kotak Mahindra Bank Ltd 1.55 1.34 1.9 1.75 2.19 0.78 1.25 1.15 LIC 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25 Mahindra Finance 6.9 4.5 10 7.9 10.09 12 15.7 14.9 Mahanagar Co-operative Bank Ltd

14 10.05 18.1 16.02 21.1 26 32 28

NABARD 13 7.5 15 17 5 3.4 4.4 3.8 North Kanara GSB Cooperative 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6 Oriential Bank of Commerce 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25 Reserve Bank of India 8 7 11.15 10.6 12.7 6 8.9 7 Shamrao Vithal Co-operative Bank Ltd

0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

SIDBI 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59 SouthIndia Bank 10 9 12.15 11.6 12.7 6 8.9 7 State Bank Of India (SBI) 1.55 1.34 1.9 1.75 2.19 0.78 1.25 1.15 Syndicate Bank 2.08 1.05 5.09 4.1 7.09 5.15 6.78 6 Uco bank 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25 Union Bank Of India 14 10.05 18.1 16.02 21.1 26 32 28 United Bank of India 3.89 2.3 4.09 6.8 7 5 8 7.3 Vijay Bank 23 14.1 24 21.1 34 39 43 41.55


99

Figure: 6.2.33- Sales of the Banking and Financial Institutions during Global recession

Interpretation- Here if we observe the data and graphs of these banking and financial institutions, Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay. We find most of these had their sales from deposits and policies affected during recession. Due to the sliding economy that affected the Indian banking and financial industry with sale of deposits and policies dipping and many joint ventures were being put on hold.

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100

Table: 6.2.31-Net Profit of the Banking and Financial Institutions during Global recession


Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Net Profit of Banking and financial

Institutions in Crores Abhyudaya Cooperative Bank Ltd 75.86 60.65 85.39 83.78 80.47 75.11 95 83.1 Allahabad 20.65 10.86 30.22 25.17 33.18 15.09 23.19 20.18 Axis Bank Limited 11.25 8.78 15.7 9.18 20.08 -14.78 26.1 24 Bank Of India 109 104 130 127 150 145 160 155 Bank of Maharashtra 10.5 9.6 12.2 11.17 13.18 14.09 16.19 15.18 Canara Bank 19 10 30 27 50 45 60 55 Catholic Syrian Bank 0.78 0.56 0.97 0.8 1.48 1.65 2.1 1.9 Central Bank Of India 4.35 3.78 6.07 5.98 7.08 -4.78 12.1 10 Citibank NA 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Citigroup Private Bank 15.09 14.25 18.25 17 18.45 19 23 20.15 Citizen Credit Bank 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Corporation Bank 8.25 7.78 11.7 9.18 18.08 -14.78 16.1 15 Dena Bank 8.25 7.78 11.7 9.18 18.08 -11.78 16.1 15 Deutsche Bank 6.25 5.78 10.7 7.18 11.08 -10.78 15 12 Development Credit Bank(DCB) 75.86 60.65 85.39 83.78 80.47 75.11 95 83.1 Export Import Bank Of India 21.35 11.78 35.07 30.98 34.08 -24.78 36.1 34 HDFC Bank Ltd 11.25 8.78 15.7 9.18 20.08 -14.78 26.1 24 ICICI Bank 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Indian Overseas Bank 109 104 130 127 150 145 160 155 Indusind Bank Ltd (Hinduja) 10.5 9.6 12.2 11.17 13.18 14.09 16.19 15.18 Industrial Development Bank of India Ltd(IDBI)

6.7 5.9 7.1 7.09. 8.25 8.1 9.5 9.05

ING Vysa Bank 146.9 102 625 233 709.1 578 780 656 Kotak Mahindra Bank Ltd 10.65 10.86 20.22 15.17 13.18 15.09 13.19 20.18 LIC 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Mahanagar Co-operative Bank Ltd 8.25 7.78 11.7 9.18 18.08 -14.78 16.1 15 Mahindra Finance 5.09 4.25 8.25 7 8.45 9 13 10.15 NABARD 75.86 60.65 85.39 83.78 80.47 75.11 95 83.1 North Kanara GSB Cooperative Bank Ltd 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Oriential Bank of Commerce 10.65 9.86 13.22 15.17 23.18 15.09 21.19 17.18 Reserve Bank of India 10.5 9.6 12.2 11.17 13.18 14.09 16.19 15.18 Shamrao Vithal Co-operative Bank Ltd 8.56 7.4 8.89 8.78 9.67 7.09 7.09 7.3 SIDBI 19 10 30 27 50 45 60 55 SouthIndia Bank 0.78 0.56 0.97 0.8 1.48 1.65 2.1 1.9 State Bank Of India (SBI) 10.65 10.86 20.22 15.17 13.18 15.09 13.19 20.18 Syndicate Bank 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Uco bank 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Union Bank 10 9 20 17 30 35 50 45 United Bank 0.8 0.6 0.97 0.9 1.46 1.5 2 1.6 Vijay Bank 10.6 9.8 22 15.1 15 13.78 13.2 18.18

101

Figure: 6.2.34.-Net Profit of the Banking and Financial Institutions during Global recession

Interpretation- From the above data and graph of the banking and financial institutions, Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay, we can analyze that the net profit was affected.

The net profit earned by the Banking and financial Institutions vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.

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Net Profit

Name of the Banking and FinancialInstitutions

102

Table: 6.2.32- Taxes paid by the Banking and Financial Institutions during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Taxes paid by Banking and

Financial Institutions in lakhs Abhyudaya Cooperative Bank Ltd 1.15 1.25 3.09 2.24 3.78 5.09 3.18 2.78 Allahabad 88.22 35.82 12.43 13.35 13.45 15 27.09 25.07 Axis Bank Limited 7.4 4.12 11.03 8.1 67.29 31.8 67.09 55.55 Bank Of India 3.77 4.33 4.44 2.04 3.35 3.89 3.89 3.09 Bank of Maharashtra 7.01 6.8 6.81 6.57 7.58 7 12.9 9 Canara Bank 7.01 6.8 6.81 6.57 7.58 7 12.9 9 Catholic Syrian Bank 1.16 0.14 3.98 2.19 5.08 5.14 8.9 7.7 Central Bank Of India 124 117 156 135 147 126 114 112 Citibank NA 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 Citigroup Private Bank 2.24 2.15 4.78 2.09 7.09 5.78 9.09 7.67 Citizen Credit Bank 8.24 7.15 11.78 9.09 12.09 13.78 19.09 17.67 Corporation Bank 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 Dena Bank 6.4 4.5 8.7 7.9 9.9 7.7 5.5 6.6 Deutsche Bank 7.7 6.46 9.5 8.6 10.09 6.67 10.4 8.09 Development Credit Bank(DCB) 8.3 5.76 13.5 9.5 15.09 5.67 10.5 7.09 Export Import Bank Of India 5.33 6.03 2.57 1.45 4.08 6.04 11.34 10.05 HDFC Bank Ltd 19.9 14.09 12.07 18.09 13.7 12.97 15.09 14.07 ICICI Bank 6.6 5.4 8.09 7.7 10.19 11.89 13.98 12.19 Indian Overseas Bank 7.78 6.56 9.1 8.09 10.89 11.78 14.89 13.19 Indusind Bank Ltd 6.78 5.56 8.8 7.1 9.89 10.78 15.67 11.39 Industrial Development Bank of India Ltd(IDBI)

3.24 3.15 5.78 4.09 6.09 7.78 8.09 7.67

ING Vysa Bank 8.24 7.15 11.78 9.09 13.09 15.78 19.09 17.67 Kotak Mahindra Bank Ltd 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 LIC 6.4 4.5 8.7 7.9 9.9 7.7 5.5 6.6 Mahanagar Co-operative Bank Ltd 14 11 16 15 17 12 14 11 Mahindra Finance 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 NABARD 29 27 56 35 47 26 34 22 North Kanara GSB Cooperative Bank Ltd

12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67

Oriential Bank of Commerce 14 12 16 13 17 16 14 11 Reserve Bank of India 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 Shamrao Vithal Co-operative Bank Ltd

1.15 2.25 3.09 2.24 3.78 5.09 3.18 2.78

SIDBI 88.22 45.89 12.43 13.35 13.45 15 27.09 25.07 SouthIndia Bank 7.4 4.12 11.03 8.1 67.29 31.8 67.09 55.55 State Bank Of India (SBI) 3.77 5.33 4.44 2.04 3.35 3.89 3.89 3.09 Syndicate Bank 7.01 6.8 6.81 6.57 7.58 7 12.9 9 Uco bank 1.16 0.14 3.98 2.19 5.08 5.14 8.9 7.7 Union Bank Of India 124 117 156 135 147 126 114 112 United Bank of India 12.24 11.1 13.78 13.09 15.09 12.78 18.9 13.67 Vijay Bank 2.24 2.15 4.78 2.09 7.09 5.78 9.09 7.67 Source: Collected through Questionnaires and Interview method

103

Figure: 6.2.35- Taxes paid by the Banking and Financial Institutions during Global recession

Interpretation- From the above data and graph the taxes paid by the banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay were affected.

The taxes paid by the Banking and financial Institutions vary as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009. Numerous policies are undertaken to improve the sales and net profit.

0

200

400

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800

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1200

Taxes paid by Banking and Financial Institutions during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Taxes paid

Taxes paid by Banking and Financial Institutions

104

Table: 6.2.33- Changes in the number of employees of Banking and Financial Institutions during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Number of Employees of Banking

and Financial Institutions in Hundreds

Abhyudaya Cooperative Bank Ltd 150 100 250 178 430 249 320 280 Allahabad 100 50 250 170 300 245 305 285 Axis Bank Limited 180 170 330 260 350 260 315 310 Bank Of India 540 420 780 670 560 430 387 350 Bank of Maharashtra 540 350 156 180 340 150 278 230 Canara Bank 225 200 310 250 350 280 330 300 Catholic Syrian Bank 420 650 450 150 540 300 675 578 Central Bank Of India 540 420 780 670 560 430 387 350 Citibank NA 540 350 156 180 340 150 278 230 Citigroup Private Bank 540 420 780 670 560 430 387 350 Citizen Credit Bank 540 350 156 180 340 150 278 230 Corporation Bank 412 380 670 525 760 430 509 480 Dena Bank 525 400 750 650 770 340 400 350 Deutsche Bank 515 480 640 625 670 450 460 430 Development Credit Bank(DCB) 510 700 150 250 350 200 190 170 Export Import Bank Of India 190 100 289 278 350 245 278 260 HDFC Bank Ltd 190 100 289 278 350 245 278 260 ICICI Bank 270 250 350 270 400 180 175 185 Indian Overseas Bank 480 500 250 678 450 145 378 250 Indusind Bank Ltd 220 150 350 270 400 180 175 185 Industrial Development Bank of India Ltd(IDBI)

130 120 175 150 220 180 240 205

ING Vysa Bank 540 420 780 670 560 430 380 350 Kotak Mahindra Bank Ltd 379 350 425 413 520 350 439 420 LIC 220 150 350 270 400 180 175 185 Mahanagar Co-operative Bank Ltd 525 400 750 650 770 340 400 350 Mahindra Finance 515 480 640 625 670 450 460 430 NABARD 480 500 250 678 450 149 280 250 North Kanara GSB Cooperative Bank Ltd

220 150 350 270 400 345 175 185

Oriential Bank of Commerce 780 670 430 560 350 280 325 310 Reserve Bank of India 150 100 250 178 430 249 320 280 Shamrao Vithal Co-operative Bank Ltd 100 50 250 170 300 245 305 285 SIDBI 180 170 330 260 350 260 315 310 SouthIndia Bank 540 420 780 670 560 430 387 350 State Bank Of India (SBI) 540 350 156 180 340 150 278 230 Syndicate Bank 225 200 310 250 350 280 330 300 Uco bank 420 650 450 150 540 300 675 578 Union Bank Of India 540 420 780 670 560 430 387 350 United Bank of India 540 350 156 180 340 150 278 230 Vijay Bank 540 420 780 670 560 430 387 350


105

Figure: 6.2.36- Changes in the number of employees of Banking and Financial Institutions during Global recession

Interpretation- The above data and graph depicts the changes in the number of employees of these banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay.

The change was due to sudden reduction in creation of employment; new appointees to the organizations were sent back home with advance three months salary due to company policy of cutting costs and salary of many employees were reduced by twenty percent of their actual salary.

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Changes in the number of employees of Banking and Financial Institutions during Global recession.

2004 2005 2006 2007 2008 2009 2010 2011

Changes in Number of employees


106

Table: 6.2.34-Total assets of the Banking and Financial Institutions during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total Assets of the Banking and Financial Institutions in

Crores Abhyudaya Cooperative Bank Ltd

43.15 38.23 50.12 45 46.15 30.12 50.15 48.25

Allahabad 33.28 30.16 38.26 37.15 35.16 28.56 43.27 40.16 Axis Bank Limited 32.15 27.26 40.16 38.17 32.23 22.17 36.1 35.25 Bank Of India 40.21 32.25 43.15 42.25 37.44 20.15 42.24 41.12 Bank of Maharashtra 32.23 33.15 36.1 35.25 32.15 27.25 41.12 38.17 Canara Bank 30.16 26.25 37.15 38.26 33.28 23.18 36.6 35.52 Catholic Syrian Bank 134.08 112.68 56.98 48.04 124 14.72 23.98 21.1 Central Bank Of India 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Citibank NA 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Citigroup Private Bank 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17 Citizen Credit Bank 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Corporation Bank 12 9.08 20.12 15 25.14 27.1 32.15 30.12 Dena Bank 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Deutsche Bank 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Development Credit Bank(DCB) 13.89 12.3 14.09 16.8 11 13 23 21.3 Export Import Bank Of India 30.12 29.12 43.15 38.23 45 45.34 55.34 50.12 HDFC Bank Ltd 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 ICICI Bank 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Indian Overseas Bank 12.12 15.08 17.1 13.78 18.08 15 18.23 15.8 Indusind Bank Ltd 22.03 23.26 33.80 26.06 45.57 37.31 78.2 44.74 Industrial Development Bank of India Ltd(IDBI)

29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59

ING Vysa Bank 14 10.05 18.1 16.02 21.1 26 32 28 Kotak Mahindra Bank Ltd 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 LIC 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Mahanagar Co-operative Bank Ltd

22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89

Mahindra Finance 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25 NABARD 67.09 45.09 87.21 78.09 97.68 92.12 125.1 113.8North Kanara GSB Cooperative Bank Ltd

22.16 17.12 30.9 28.22 31.18 28.78 31.6 29.89

Oriential Bank of Commerce 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Reserve Bank of India 43.15 38.23 50.12 45 46.15 30.12 50.15 48.25 Shamrao Vithal Co-operative Bank Ltd

33.28 30.16 38.26 37.15 35.16 28.56 43.27 40.16

SIDBI 32.15 27.26 40.16 38.17 32.23 22.17 36.1 35.25 SouthIndia Bank 40.21 32.25 43.15 42.25 37.44 20.15 42.24 41.12 State Bank Of India (SBI) 32.23 33.15 36.1 35.25 32.15 27.25 41.12 38.17 Syndicate Bank 30.16 26.25 37.15 38.26 33.28 23.18 36.6 35.52 Uco bank 134.08 112.68 56.98 48.04 124 14.72 23.98 21.1 Union Bank Of India 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 United Bank of India 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Vijay Bank 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17 Source: Collected through Questionnaires and Interview method

107

Figure: 6.2.37- Total assets of the Banking and Financial Institutions during Global recession

Interpretation- The above data and graph projects that most of these banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay had their assets affected.

The decline in investments began in the year 2007 as the investments of assets began to stagnate as the operations and sales started to slow down due to the financial crisis in the world.

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Total assets of the Banking and Financial Institutions during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Total assets

Name of the banking and Financial Institutions

108

Table: 6.2.35- Total liabilities of the Banking and Financial Institutions

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total liabilities of the Banking and Financial Institutions in

Crores Abhyudaya Cooperative Bank Ltd

33.28 30.16 38.26 37.15 38.26 35.16 43.27 40.16

Allahabad 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Axis Bank Limited 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Bank Of India 30.12 29.12 43.15 38.23 45 45.34 55.34 50.12 Bank of Maharashtra 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Canara Bank 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Catholic Syrian Bank 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Central Bank Of India 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Citibank NA 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Citigroup Private Bank 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28 Citizen Credit Bank 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Corporation Bank 167.8 134 156.9 123.9 170.1 34.9 80 78.89 Dena Bank 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Deutsche Bank 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Development Credit Bank(DCB) 14.05 13.45 28.07 15.08 44.09 23.09 10.15 -12.9 Export Import Bank Of India 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 HDFC Bank Ltd 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 ICICI Bank 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 Indian Overseas Bank 16.09 11.5 56 78.09 65.09 76.09 45 34.89 Indusind Bank Ltd 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Industrial Development Bank of India Ltd(IDBI)

32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

ING Vysa Bank 23.58 14.08 45.07 34.18 54.67 78.9 47 45.67 Kotak Mahindra Bank Ltd 38.23 30.12 45 43.15 50.12 46.15 50.15 48.25 LIC 30.16 28.56 37.15 33.28 38.26 35.16 43.27 40.16 Mahanagar Co-operative Bank Ltd

27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Mahindra Finance 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 NABARD 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17 North Kanara GSB Cooperative Bank Ltd

32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Oriential Bank of Commerce 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Reserve Bank of India 33.28 30.16 38.26 37.15 38.26 35.16 43.27 40.16 Shamrao Vithal Co-operative Bank Ltd

32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 SIDBI 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 SouthIndia Bank 30.12 29.12 43.15 38.23 45 45.34 55.34 50.12 State Bank Of India (SBI) 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Syndicate Bank 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Uco bank 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Union Bank Of India 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 United Bank of India 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Vijay Bank 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28


Figure: 6.2.38- Total liabilities of the Banking and Financial Institutions during Global recession

Interpretation- From the above data and graph, the liabilities of these Banks Cooperative, Allahabad, Axis, BOIBank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development CIndusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Cooperative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, ShaState Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijayaffected.

There was decline in liabilities as companies had reduced in borrowing funds from the banks and other financial difficulties in getting funds from their customer

-200

0

200

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Total liabilities of the Banking and Financial Institutions during Global

2004

Total liabilities


109

Total liabilities of the Banking and Financial Institutions during

From the above data and graph, the liabilities of these Banks habad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian,

Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Cooperative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay


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Total liabilities of the Banking and Financial Institutions during Global recession

2005 2006 2007 2008 2009 2010 2011


Total liabilities of the Banking and Financial Institutions during

From the above data and graph, the liabilities of these Banks Abhyudaya ,Catholic Syrian, Central

Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, redit (DCB), Export Import HDFC, ICICI, Indian Overseas,

Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank

operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay were

There was decline in liabilities as companies had reduced in borrowing funds from the institutions or from money lenders. Even banks were facing

SID

BI

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Total liabilities of the Banking and Financial Institutions during Global

2011

110

Table: 6.2.36- Investments of the Banking and Financial Institutions during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Investments of the Banking and Financial Institutions in Crores

Abhyudaya Cooperative Bank Ltd 13.28 5.77 15.16 18.26 18.26 17.15 22.16 18.6 Allahabad 12 8 17.25 12.5 22.45 20.15 21.1 23.2 Axis Bank Limited 8.4 9 16.23 12.52 22.52 10.25 20.25 18.15 Bank Of India 10.12 12 15.4 13.15 13.15 18.23 20.12 15 Bank of Maharashtra 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16 Canara Bank 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 Catholic Syrian Bank 13.09 8.24 15.55 14 14 14.72 40.34 21 Central Bank Of India 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 Citibank NA 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Citigroup Private Bank 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Citizen Credit Bank 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Corporation Bank 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Dena Bank 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Deutsche Bank 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Development Credit Bank(DCB) 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09 Export Import Bank Of India 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16 HDFC Bank Ltd 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15 ICICI Bank 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5 Indian Overseas Bank 16.09 9.4 15.9 18 16 8.09 14.89 15.09 Indusind Bank Ltd 7.26 6.4 15.3 8.17 18.7 9.5 15.5 10.6 Industrial Development Bank of India Ltd(IDBI)

15.25 14 27.44 22.25 32.5 30.21 31.12 33.15

ING Vysa Bank 13.58 12.24 18.9 15.07 25.07 14.18 15.67 14.67 Kotak Mahindra Bank Ltd 38.23 29 46.15 45 45 43.15 48.25 50.12 LIC 20.6 12.24 25.16 27.5 17.15 13.28 20.16 18.26 Mahanagar Co-operative Bank Ltd 17.26 14 12.3 18.7 18.7 12.15 15.25 20.16

Mahindra Finance 12.25 8.24 17.4 15.5 22.25 20.21 21.12 23.15 NABARD 33.15 30 32.15 35.25 35.25 32.23 38.17 36.1 North Kanara GSB Cooperative Bank Ltd

32 27 37.25 42.45 42.45 40.15 41.1 43.2

Oriential Bank of Commerce 28.45 19.8 36.23 32.52 32.52 30.25 40.25 38.15 Reserve Bank of India 13.28 5.77 15.16 18.26 18.26 17.15 22.16 18.6 Shamrao Vithal Co-operative Bank Ltd

12 8 17.25 12.5 22.45 20.15 21.1 23.2

SIDBI 8.4 9 16.23 12.52 22.52 10.25 20.25 18.15 SouthIndia Bank 10.12 12 15.4 13.15 13.15 18.23 20.12 15 State Bank Of India (SBI) 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16 Syndicate Bank 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 Uco bank 13.09 8.24 15.55 14 14 14.72 40.34 21 Union Bank Of India 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 United Bank of India 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Vijay Bank 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Source: Collected through Questionnaires and Interview method

111

Figure: 6.2.39- Investments of the Banking and Financial Institutions during Global recession

Interpretation- The above data and graph depicts that these banking and financial institutions of Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay had to invest in New ventures like Mergers, strategic alliances and Acquisitions.

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Investments of the Banking and Financial Institutions during recession

2004 2005 2006 2007 2008 2009 2010 2011

Investments


112

Table: 6.2.37-Performance of shares/ stocks of Banking and Financial Institutions during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Performance of shares/stocks of

Banking and Financial Institutions in lakhs

Abhyudaya Cooperative Bank Ltd 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Allahabad 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Axis Bank Limited 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Bank Of India 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Bank of Maharashtra 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Canara Bank 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09 Catholic Syrian Bank 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16 Central Bank Of India 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15 Citibank NA 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15 Citigroup Private Bank 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5 Citizen Credit Bank 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Corporation Bank 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Dena Bank 13.09 15.9 34 14.72 21 35.55 45.47 40.34 Deutsche Bank 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Development Credit Bank(DCB) 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Export Import Bank Of India 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28 HDFC Bank Ltd 16.78 14 16.9 13.85 17.09 34.9 80 78.89 ICICI Bank 6.8 5 11 10.9 10.09 12.9 15 14 Indian Overseas Bank 25 19 32 15 25 33.5 40.4 38.3 Indusind Bank Ltd 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Industrial Development Bank of India Ltd(IDBI)

13.09 15.9 34 14.72 21 35.55 45.47 40.34

ING Vysa Bank 12.12 15.08 17.1 13.78 18.08 15 18.23 15.8 Kotak Mahindra Bank Ltd 22.03 23.26 33.8 26.06 45.57 37.31 78.2 44.74 LIC 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Mahanagar Co-operative Bank Ltd 14 10.05 18.1 16.02 21.1 26 32 28

Mahindra Finance 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 NABARD 56.9 45.86 57.1 57.67 58.1 41.9 48 45 North Kanara GSB Cooperative Bank Ltd

22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89

Oriential Bank of Commerce 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25 Reserve Bank of India 17.09 15.09 17.21 18.09 17.68 12.12 15.18 13.89 Shamrao Vithal Co-operative Bank Ltd

22.16 17.12 30.9 28.22 31.18 28.78 31.6 29.89

SIDBI 8.55 7.7 9.28 8 12 17.26 23.28 20.28 SouthIndia Bank 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 State Bank Of India (SBI) 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Syndicate Bank 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Uco bank 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Union Bank Of India 11.05 6.6 13.09 14.07 8.07 5.08 12.19 14.09 United Bank of India 8.26 7.78 10.3 9.17 11.17 12.15 12.9 12.16 Vijay Bank 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15


113

Figure: 6.2.40- Performance of shares/ stocks of Banking and Financial Institutions during Global recession

Interpretation- The above data and graph projects that the performance of these banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay were affected.

The share or stock rates of these institutions have been drastically fallen causing agnosticism. The reduction of sales and profits of these banking and financial institutions in terms of policies, saving and term deposits.

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Performance of shares/ stocks of Banking and Financial Institutions during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Performance of shares/stocks

Name of the Banking and Financial Instituions

114

Table: 6.2.38-Savings and term deposits of Banking and Financial Institutions during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Savings and term deposits

Banking and Financial Institutions in Lakhs

Abhyudaya Cooperative Bank Ltd 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16

Allahabad 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15

Axis Bank Limited 13.09 8.24 15.55 14 14 14.72 40.34 21

Bank Of India 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44

Bank of Maharashtra 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5

Canara Bank 8.55 7.7 9.28 8 12 17.26 23.28 20.28

Catholic Syrian Bank 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6

Central Bank Of India 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9

Citibank NA 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16

Citigroup Private Bank 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15

Citizen Credit Bank 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09

Corporation Bank 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16

Dena Bank 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15

Deutsche Bank 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15

Development Credit Bank(DCB) 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5

Export Import Bank Of India 23 14.1 24 21.1 34 39 43 41.55

HDFC Bank Ltd 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

ICICI Bank 10.1 9 12.1 11.67 13.9 14 16 15

Indian Overseas Bank 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Indusind Bank Ltd 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12

Industrial Development Bank of India Ltd(IDBI)

27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25

ING Vysa Bank 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12

Kotak Mahindra Bank Ltd 8 7 11.15 10.6 12.7 6 8.9 7

LIC 0.6 0.45 1.7 0.7 5 6 8.25 7.15

Mahanagar Co-operative Bank Ltd 11.9 11 13.1 12.67 15 9.1 13 11 Mahindra Finance 14.9 12.9 16.1 15.67 17.1 11.9 15 13

NABARD 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

North Kanara GSB Cooperative Bank Ltd

12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89

Oriential Bank of Commerce 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59

Reserve Bank of India 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16

Shamrao Vithal Co-operative Bank Ltd

12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15

SIDBI 13.09 8.24 15.55 14 14 14.72 40.34 21

SouthIndia Bank 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44

State Bank Of India (SBI) 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5

Syndicate Bank 8.55 7.7 9.28 8 12 17.26 23.28 20.28

Uco bank 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6

Union Bank Of India 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9

United Bank of India 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16

Vijay Bank 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15


Figure: 6.2.41- Savings and term deposits of Banking and Financial Institutionsduring Global Recession

Interpretation- The above data and graph in terms of savings of these banking and financial institutions Abhyudaya Cooperative, Canara ,Catholic Syrian, Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial DevelopLIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Cooperative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, UcIndia, United and Vijay have been affected.

The reduction of sales and profits of these banking and financial institutions in terms of policies, saving and term deposits. The other factors include falling demand for policies, falling rupee value, rising of inflation and unemployment.

0

50

100

150

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250

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a

Savings and term deposits Banking and Financial Institutions during

2004

Savings and term deposits

Name of the Banking and

115

Savings and term deposits of Banking and Financial Institutionsduring Global Recession

The above data and graph in terms of savings of these banking and Abhyudaya Cooperative, Allahabad, Axis, BOI

,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra,

operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Cooperative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of

have been affected.

The reduction of sales and profits of these banking and financial institutions in terms of policies, saving and term deposits. The other factors include falling demand for policies,

e value, rising of inflation and unemployment.

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Savings and term deposits Banking and Financial Institutions during Global Recession

2005 2006 2007 2008 2009 2010 2011

Name of the Banking andFinancial Instituions

Savings and term deposits of Banking and Financial Institutions

The above data and graph in terms of savings of these banking and habad, Axis, BOI, Maharashtra,

Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC,

ment, ING Vysa, Kotak Mahindra, operative, Mahindra Finance, NABARD, North Kanara GSB

Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-o, Union Bank Of

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Savings and term deposits Banking and Financial Institutions during

2011

116

Table: 6.2.39-Remittances/ Foreign currencies of Banking and Financial Institutions during Global Recession

Year-wise 2004 2005 2006

2007 2008 2009 2010 2011 Remittances/ foreign currencies of Banking and Financial Institutions

in Crores

Abhyudaya Cooperative Bank Ltd 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16 Allahabad 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 Axis Bank Limited 13.09 8.24 15.55 14 14 14.72 40.34 21 Bank Of India 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 Bank of Maharashtra 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Canara Bank 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Catholic Syrian Bank 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Central Bank Of India 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Citibank NA 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Citigroup Private Bank 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Citizen Credit Bank 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09 Corporation Bank 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16 Dena Bank 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15 Deutsche Bank 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15 Development Credit Bank (DCB) 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5 Export Import Bank Of India 23 14.1 24 21.1 34 39 43 41.55 HDFC Bank Ltd 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6 ICICI Bank 10.1 9 12.1 11.67 13.9 14 16 15 Indian Overseas Bank 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25 Indusind Bank Ltd 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12 Industrial Development Bank of India Ltd(IDBI)

27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25

ING Vysa Bank 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12 Kotak Mahindra Bank Ltd 8 7 11.15 10.6 12.7 6 8.9 7 LIC 0.6 0.45 1.7 0.7 5 6 8.25 7.15 Mahanagar Co-operative Bank Ltd 11.9 11 13.1 12.67 15 9.1 13 11 Mahindra Finance 14.9 12.9 16.1 15.67 17.1 11.9 15 13 NABARD 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48 North Kanara GSB Cooperative Bank Ltd

12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89

Oriential Bank of Commerce 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59 Reserve Bank of India 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16 Shamrao Vithal Co-operative Bank Ltd 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 SIDBI 13.09 8.24 15.55 14 14 14.72 40.34 21 SouthIndia Bank 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 State Bank Of India (SBI) 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Syndicate Bank 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Uco bank 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Union Bank Of India 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 United Bank of India 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 Vijay Bank 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Source: Collected through Questionnaires and Interview method

117

Figure: 6.2.42- Remittances/ Foreign currencies of Banking and Financial Institutions during Global Recession

Interpretation- The above data and graph depicts the flow of foreign currencies through these banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay.

Earlier to the recession there were many tourists to India who would visit religious places, few for holidaying in Goa or Mangalore. Even for business and for attending conferences foreign delegates used to visit India. Even we have non resident Indians staying in abroad who used visit their hometown once in a while. Due to pay cut and laying of workforce during the recession, there was decline of foreign tourists in India which indirectly affects the foreign remittances to the bank.

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Remittances/ Foreign currencies of Banking and Financial Institutions during recession

2004 2005 2006 2007 2008 2009 2010 2011

Remittances/ Foreign currencies


118

Table: 6.2.40-Equity of the Banking and Financial Institutions during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Equity of the Banking and

Financial Institutions in Crores Abhyudaya Cooperative Bank Ltd 38.23 30.12 45 43.15 50.12 46.15 50.15 48.25 Allahabad 30.16 28.56 37.15 33.28 38.26 35.16 43.27 40.16 Axis Bank Limited 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Bank Of India 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Bank of Maharashtra 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17 Canara Bank 26.25 23.18 38.26 30.16 37.15 33.28 36.6 35.52 Catholic Syrian Bank 112.68 45.86 48.04 134.08 56.98 124 152.15 152.67 Central Bank Of India 55.21 53.15 63.45 58.25 77.44 51.22 55.15 52.4 Citibank NA 123.89 110.78 147.78 132 157.14 98.15 125 123.89 Citigroup Private Bank 115 113 148 136 159 124 146 135 Citizen Credit Bank 173.14 167.8 197.14 187.78 200.35 110.78 132.00 123.89 Corporation Bank 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Dena Bank 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Deutsche Bank 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28 Development Credit Bank(DCB) 145 123 178 156 189 134 150.23 144 Export Import Bank Of India 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 HDFC Bank Ltd 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 ICICI Bank 33.5 30.15 42.4 42.15 32.75 35.56 52.24 48.27 Indian Overseas Bank 167.78 112.78 167.09 148.78 158.07 143.09 149 147.89 Indusind Bank Ltd 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Industrial Development Bank of India Ltd(IDBI)

32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2

ING Vysa Bank 180.09 179 210.13 198.78 215.78 176.19 229.79 218.78 Kotak Mahindra Bank Ltd 28.54 25 32.52 30.25 38.25 36.23 43.6 40.25 LIC 32.57 28.65 42.35 40.26 33.15 37.47 50.25 45.2 Mahanagar Co-operative Bank Ltd

33.5 30.35 42.4 42.15 32.75 35.56 52.24 48.27 Mahindra Finance 138 133 147.15 146.15 150 165.1 183.1 175.1 NABARD 27.35 23.44 30.16 29.23 32 30.18 33.06 32.59 North Kanara GSB Cooperative Bank Ltd

27.14 25.78 28.36 27.37 28.45 25.2 30.25 28.45

Oriential Bank of Commerce 30.15 29.34 31.9 31.47 32.59 28.25 32.52 30.25 Reserve Bank of India 38.23 30.12 45 43.15 50.12 46.15 50.15 48.25 Shamrao Vithal Co-operative Bank Ltd

30.16 28.56 37.15 33.28 38.26 35.16 43.27 40.16

SIDBI 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 SouthIndia Bank 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 State Bank Of India (SBI) 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17 Syndicate Bank 26.25 23.18 38.26 30.16 37.15 33.28 36.6 35.52 Uco bank 112.68 45.86 48.04 134.08 56.98 124 152.15 152.67 Union Bank Of India 55.21 53.15 63.45 58.25 77.44 51.22 55.15 52.4 United Bank of India 123.89 110.78 147.78 132 157.14 98.15 125 123.89 Vijay Bank 40.2 35.1 53.45 48.15 57.24 31.2 55.1 42.3


119

Figure: 6.2.43- Equity of the Banking and Financial Institutions during Global recession

Interpretation- From the above data and graph we can analyze the equity of banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay.

The fluctuations in the operations of the Banking and Financial sector from 2004-2010 vary mainly due to global recession in 2009 which sent threat flaps to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market.

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Equity of the Banking and Financial Institutions during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Equity


120

H0: 1. Performance of the selected Banking and Financial Institutions has not

affected by Global Recession.

Parametric test- T Test

Table: 6.2.41.1- Hypothesis results of Parametric T Test Statistics- Performance of

the selected Banking and financial Institutions has not affected by Global Recession.

T Test Statistics Particulars Table Value=39

Mean Differe

nce

Standard

Deviation

Difference df

Calculated

Statistic T

value at 95% confide

nce level

Tabulated T Value

at 95%

confidence level

Budget of the Banking and Financial Institutions 2.8225 20.27 38 0.88 1.687 Sales of the Banking and Financial Institutions 1.1825 8.53 38 0.86 1.687 Net Profit of the Banking and Financial Institutions 9.5125 74.14 38 0.80 1.687 Taxes paid of the Banking and Financial Institutions 6.32 29.70 38 1.947 1.687 Changes in the number of employees of the Banking and Financial Institutions 75 472.29 38

0.7485

1.687

Total Assets of the Banking and Financial Institutions 6.5 35.87 38 1.2094 1.687 Total Liabilities of the Banking and Financial Institutions 4.75 28.90 38 1.6115 1.687 Investments of the Banking and Financial Institutions 2.42 15.44 38 0.977 1.687 Performance of Banking and Financial Institutions 2.34 15.37 38 0.8425 1.687 Savings and term deposits of Banking and Financial Institutions 2.38 12.79 38

1.256

1.687

Remittances/ Foreign currencies of Banking and Financial Institutions 2.4 14.95 38

1.0125

1.687

Equity of the Banking and Financial Institutions 1.88 33.4 38 0.262 1.687 Source: Collected through Questionnaires and Interview method

Interpretation- The hypothesis results of Parametric test of Banking and Financial Institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay are as follows:

Since the calculated Statistic T Value at 5% level of significance less than the Tabulated T value 1.687 for all the parameters -Budget, Sales, Net Profit, Taxes paid, Changes in the number of employees, Assets ,Liabilities, Investments, Performance, Savings, Remittances and Equity. Hence we accept H0 and conclude that performance of the selected banking and financial institutions has not affected by global recession.

121

Non Parametric Test- Chi Square Test

Table: 6.2.41.1.1- Hypothesis results of Non Parametric Chi Square Test Statistics-

Performance of the selected Banking and financial Institutions has not affected by

Global Recession.


Particulars

Calculated Statistic Chi square Value

at 95% confidence

level df


value at 95%

confidence level

Budget of the Banking and Financial Institutions 0.225 38 22.876 Sales of the Banking and Financial Institutions 0.672 38 22.876 Net Profit of the Banking and Financial Institutions 0.146 38 22.876 Taxes paid of the Banking and Financial Institutions 0.426 38 22.876 Changes in the number of employees of the Banking and Financial Institutions

0.000 38 22.876

Total Assets of the Banking and Financial Institutions 0.397 38 22.876 Total Liabilities of the Banking and Financial Institutions 0.023 38 22.876 Investments of the Banking and Financial Institutions 0.312 38 22.876 Performance of Banking and Financial Institutions 0.348 38 22.876 Savings and term deposits of Banking and Financial Institutions 0.364 38 22.876

Remittances/ Foreign currencies of Banking and Financial Institutions 0.364 38 22.876 Equity of the Banking and Financial Institutions 0.255 38 22.876


Interpretation- The hypothesis results of Parametric test of Banking and Financial Institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay are as follows.

Since the calculated statistic Chi square value at 5% is less than the tabulated chi square value 22.876 for all the parameters Budget, Sales, Net Profit, Taxes paid, Changes in the number of employees, Assets ,Liabilities, Investments, Performance, Savings, Remittances and Equity respectively . We accept H0 and conclude that performance of the selected banking and financial institutions has not affected by global recession.

122

2. To understand the current overall Banking and Financial Institutions situation

and to study that how can it be improved in future?

Table: 6.2.42- Growth of Banking and financial Institutions during Global recession

Name of the Automobile Companies Growth of Banking and Financial Institutions during Global recession Before recession* After Recession**

Abhyudaya Cooperative Bank Ltd 5 5 Allahabad 5 5 Axis Bank Limited 4 2 Bank Of India 5 3 Bank of Maharashtra 5 5 Canara Bank 4 2 Catholic Syrian Bank 2 5 Central Bank Of India 4 5 Citibank NA 5 4 Citigroup Private Bank 2 5 Citizen Credit Bank 5 5 Corporation Bank 2 5 Dena Bank 2 4 Deutsche Bank 5 5 Development Credit Bank(DCB) 5 4 Export Import Bank Of India 4 4 HDFC Bank Ltd 4 2 ICICI Bank 4 4 Indian Overseas Bank 4 3 Indusind Bank Ltd 5 1 Industrial Development Bank of India Ltd(IDBI)

5 4

ING Vysa Bank 3 2 Kotak Mahindra Bank Ltd 5 5 LIC 5 4 Mahanagar Co-operative Bank Ltd 5 4 Mahindra Finance 5 5 NABARD 2 4 North Kanara GSB Cooperative Bank Ltd 2 4 Oriential Bank of Commerce 2 4 Reserve Bank of India 5 4 Shamrao Vithal Co-operative Bank Ltd 5 5 SIDBI 1 2 SouthIndia Bank 5 3 State Bank Of India (SBI) 1 4 Syndicate Bank 4 2 Uco bank 2 5 Union Bank Of India 5 3 United Bank of India 2 2 Vijay Bank 5 2


*Parameters of Growth Before recession *Parameters of Growth Before recession *Parameters of Growth Before recession *Parameters of Growth Before recession ((((1 stands for Significantly Decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly Increasing).

**Parameters of Growth after recession**Parameters of Growth after recession**Parameters of Growth after recession**Parameters of Growth after recession(1stands for Significantly negative impact, 2 stands for Slightly negative impact, 3 stands for No impact, 4 stands for Slightly positive impact and 5 stands for Significantly positive impact)

123

Figure: 6.2.44- Growth of Banking and Financial Institutions before Global recession

Figure: 6.2.45- Growth of Banking and Financial Institutions after Global recession

Interpretation - The above data and graph depicts the growth of Banking and Financial Institutions such as Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB),Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay before and after

recession. Before the recession, these banking and financial institutions Catholic, Citigroup Private, Corporation, and Dena, NABARD, NKGSB Co -operative, Oriential Bank of Commerce, Uco and United had attained break even in terms of growth. The rest of the banking and financial institutions showed no change in terms of growth, showed fluctuations in the growth. Showed significantly decreasing in the growth and significantly increasing in the growth. After recession Most of them had significantly and slightly positive impact on their growth, few of them had significantly and slightly negative impact on their growth and the rest did not show any impact on their growth.

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Growth of Banking and Financial Institutions before Global recession

Significantly decreasingAttained breakevenNo ImpactFluctuationsSignificantly Increasing



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No Impact

slightly positive impact


Growth after recession


124

Table: 6.2.43- Rates on Home loans of Banking and Financial Institutions affected by Global recession

Name of the Banking and Financial Institutions Rates on Home loans of Banking and Financial Institutions affected by Global recession Before recession* After recession**

Abhyudaya Cooperative Bank Ltd 5 5 Allahabad 5 5 Axis Bank Limited 4 2 Bank Of India 2 2 Bank of Maharashtra 3 5 Canara Bank 5 5 Catholic Syrian Bank 2 5 Central Bank Of India 5 4 Citibank NA 2 2 Citigroup Private Bank 2 3 Citizen Credit Bank 4 3 Corporation Bank 2 1 Dena Bank 5 4 Deutsche Bank 1 3 Development Credit Bank(DCB) 5 4 Export Import Bank Of India 5 3 HDFC Bank Ltd 2 2 ICICI Bank 3 3 Indian Overseas Bank 5 4 Indusind Bank Ltd 2 2 Industrial Development Bank of India Ltd (IDBI) 4 3 ING Vysa Bank 2 2 Kotak Mahindra Bank Ltd 2 2 LIC 4 5 Mahanagar Co-operative Bank Ltd 5 4 Mahindra Finance 5 3 NABARD 5 4 North Kanara GSB Cooperative Bank Ltd 2 1 Oriential Bank of Commerce 2 3 Reserve Bank of India 5 3 Shamrao Vithal Co-operative Bank Ltd 2 3 SIDBI 1 2 SouthIndia Bank 2 3 State Bank Of India (SBI) 2 2 Syndicate Bank 2 2 Uco bank 5 5 Union Bank Of India 5 5 United Bank of India 5 5 Vijay Bank 4 4


**Parameters of Rates on Home loans of Banking and Financial Institutions before recession (**Parameters of Rates on Home loans of Banking and Financial Institutions before recession (**Parameters of Rates on Home loans of Banking and Financial Institutions before recession (**Parameters of Rates on Home loans of Banking and Financial Institutions before recession ( 1 stands for Significantly decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 Significantly Increasing.

****Parameters of Rates on Home loans of Banking and Financial Institutions after recession Parameters of Rates on Home loans of Banking and Financial Institutions after recession Parameters of Rates on Home loans of Banking and Financial Institutions after recession Parameters of Rates on Home loans of Banking and Financial Institutions after recession ((((1 stands for Worse Affected, 2 stands for Strongly affected, 3 stands Somewhat affected,4 stands for Badly Affected and 5 stands for Not Affected.

125

Figure: 6.2.46- Rates on Home loans of Banking and Financial Institutions before Global recession

Figure: 6.2.47- Rates on Home loans of Banking and Financial Institutions after Global recession

Interpretation- From the above data and graph we find that most of these banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB

Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank have their home loans affected after recession. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase of rates of Home loans. Only few had attained breakeven and there were fluctuations in the rates of home loans.

0

1

2

3

4

5

6

7

Rates of Home loans of Banking and Financial Institutions before Global

recession

Significantly decreasingAttained breakevenNo ImpactFluctuationsSignificantly increasing

Rates of Home loans before recession

Name of the Banking and Financial instititutions

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a B

an

k

Dev

elop

men

t Cre

dit B

an

k(D

CB

)

HD

FC

Ba

nk

Ltd

Indi

an

Ove

rsea

s B

an

k

Indu

stri

al D

evel

opm

ent

Ba

nk

of I

ndi

a L

td

Kot

ak

Ma

hin

dra

Ba

nk

Ltd

Ma

ha

nag

ar C

o-ope

rativ

e B

an

k Lt

d

NA

BA

RD

Ori

entia

l Ba

nk

of C

omm

erce

Sh

am

rao

Vith

al C

o-ope

rativ

e B

an

k Lt

d

Sou

thIn

dia

Ba

nk

Syn

dica

te B

an

k

Un

ion

Ba

nk

Of I

ndi

a

Vija

y B

an

k

Rates on Home loans of Banking and Financial Institutions after

Global recession

Worse affected Strongly affected

Somewhat affected Badly affectedNot affected

Rates on Home loansafter recession

Name of the Banking and Financial institutions

126

Table: 6.2.44- Rate on Car loans of Banking and Financial Institutions affected by Global recession


Rate on Car loans of Banking and Financial Institutions affected by Global recession

Before Recession* After Recession** Abhyudaya Cooperative Bank Ltd 5 5 Allahabad 1 5 Axis Bank Limited 4 3 Bank Of India 2 3 Bank of Maharashtra 3 4 Canara Bank 5 5 Catholic Syrian Bank 2 4 Central Bank Of India 5 4 Citibank NA 2 5 Citigroup Private Bank 2 5 Citizen Credit Bank 4 5 Corporation Bank 5 3 Dena Bank 5 3 Deutsche Bank 1 4 Development Credit Bank(DCB) 5 4 Export Import Bank Of India 5 4 HDFC Bank Ltd 2 4 ICICI Bank 3 4 Indian Overseas Bank 5 3 Indusind Bank Ltd 2 4 Industrial Development Bank of India Ltd (IDBI) 5 5

ING Vysa Bank 4 5 Kotak Mahindra Bank Ltd 5 5 LIC 5 4 Mahanagar Co-operative Bank Ltd 5 3 Mahindra Finance 4 3 NABARD 5 4 North Kanara GSB Cooperative Bank Ltd 4 2 Oriential Bank of Commerce 3 4 Reserve Bank of India 5 3 Shamrao Vithal Co-operative Bank Ltd 5 3 SIDBI 3 1 SouthIndia Bank 5 3 State Bank Of India (SBI) 5 3 Syndicate Bank 5 4 Uco bank 5 5 Vijay Bank 5 5


**Parameters of Rates on Car loans of Banking and **Parameters of Rates on Car loans of Banking and **Parameters of Rates on Car loans of Banking and **Parameters of Rates on Car loans of Banking and Financial Institutions before recession (Financial Institutions before recession (Financial Institutions before recession (Financial Institutions before recession ( 1 stands for Significantly decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 Significantly Increasing.

****Parameters of Rates on Car loans of Banking and FiParameters of Rates on Car loans of Banking and FiParameters of Rates on Car loans of Banking and FiParameters of Rates on Car loans of Banking and Financial Institutions after recession nancial Institutions after recession nancial Institutions after recession nancial Institutions after recession ((((1 stands for Worse Affected, 2 stands for Strongly affected, 3 stands Somewhat affected,4 stands for Badly Affected and 5 stands for Not Affected.

127

Figure: 6.2.46- Rate on Car loans of Banking and Financial Institutions before Global recession

Figure: 6.2.47- Rate on Car loans of Banking and Financial Institutions after Global recession

Interpretation- From the above data and graph we find that most of these banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd,

Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank. have their car loans affected after recession. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase of rates of Car loans. Only few had attained breakeven and there were fluctuations in the rates of Car loans

.

0

1

2

3

4

5

6

Rates of Car loans of Banking and Financial Institutions before Global

recession

Sig nificantly decreasingAttained BreakevenNo ImpactFluctuationsSignificantly increasing

Rates of Car loans before recession


0

1

2

3

4

5

6

Abh

yuda

ya C

oope

rativ

e B

an

k Lt

d

Axi

s B

an

k Li

mite

d

Ba

nk

of M

ah

ara

shtr

a

Ca

thol

ic S

yria

n B

an

k

Citi

ban

k N

A

Citi

zen

Cre

dit B

an

k

Den

a B

an

k

Dev

elop

men

t Cre

dit B

an

k(D

CB

)

HD

FC

Ba

nk

Ltd

Indi

an

Ove

rsea

s B

an

k

Indu

stri

al D

evel

opm

ent

Ba

nk

of I

ndi

a L

td

Kot

ak

Ma

hin

dra

Ba

nk

Ltd

Ma

ha

nag

ar C

o-ope

rativ

e B

an

k Lt

d

NA

BA

RD

Ori

entia

l Ba

nk

of C

omm

erce

Sh

am

rao

Vith

al C

o-ope

rativ

e B

an

k Lt

d

Sou

thIn

dia

Ba

nk

Syn

dica

te B

an

k

Vija

y B

an

k

Rates of Car loans of Banking and Financial Institutions after Global

recession

Worse Affected Strongly affectedSomewhat affected Badly affectedNot affected

Rates of Car loans after recession


128

Table: 6.2.45- Rate on Corporate loans of Banking and Financial Institutions affected by Global recession

Name of the Banking and Financial Institutions Rate on Corporate loans of Banking and Financial Institutions affected by Global recession Before recession* After recession**

Abhyudaya Cooperative Bank Ltd 5 4

Allahabad 5 4

Axis Bank Limited 4 5

Bank Of India 2 4

Bank of Maharashtra 3 1

Canara Bank 5 4

Catholic Syrian Bank 2 4

Central Bank Of India 5 4

Citibank NA 3 5

Citigroup Private Bank 3 4

Citizen Credit Bank 4 4

Corporation Bank 5 5

Dena Bank 5 3

Deutsche Bank 1 1

Development Credit Bank(DCB) 5 3

Export Import Bank Of India 5 4

HDFC Bank Ltd 2 2

ICICI Bank 3 3

Indian Overseas Bank 5 4

Indusind Bank Ltd 2 3

Industrial Development Bank of India Ltd (IDBI) 5 4

ING Vysa Bank 2 4

Kotak Mahindra Bank Ltd 2 5

LIC 4 5

Mahanagar Co-operative Bank Ltd 5 5

Mahindra Finance 5 5

NABARD 5 4

North Kanara GSB Cooperative Bank Ltd 2 3

Oriential Bank of Commerce 2 2

Reserve Bank of India 5 5

Shamrao Vithal Co-operative Bank Ltd 5 4

SIDBI 4 4

SouthIndia Bank 5 4

State Bank Of India (SBI) 5 4

Syndicate Bank 5 4

Uco bank 4 4

Union Bank Of India 2 3

United Bank of India 3 3

Vijay Bank 5 5

Source: Collected through Questionnaires and Interview methods

**Parameters of Rates on Car loans of Banking and Financial Institutions before recession (**Parameters of Rates on Car loans of Banking and Financial Institutions before recession (**Parameters of Rates on Car loans of Banking and Financial Institutions before recession (**Parameters of Rates on Car loans of Banking and Financial Institutions before recession ( 1 stands for Significantly decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 Significantly Increasing. ****Parameters of Rates on Car loans of Banking and Parameters of Rates on Car loans of Banking and Parameters of Rates on Car loans of Banking and Parameters of Rates on Car loans of Banking and Financial Institutions after recession Financial Institutions after recession Financial Institutions after recession Financial Institutions after recession ((((1 stands for Worse Affected, 2 stands for Strongly affected, 3stands Somewhat affected,4 stands for Badly Affected and 5 stands for Not Affected

Figure: 6.2.50- Rate on Corporate loans of Banking and FinancialInstitutions before Global

Interpretation- From the above data and graph we find that most of these banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North

0

1

2

3

4

5

6

Rate on Corporate loans of Banking and Financial Institutions before

Global recession


Rate on Corporate loans before recession

Name of theBanking and Financial

129

Rate on Corporate loans of Banking and Financial Institutions before Global recession

Figure: 6.2.51- Rate on Corporate loans of Banking and FinancialInstitutions after Global recession

From the above data and graph we find that most of these banking and financial institutions

rative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche

Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd,

operative Bank Ltd, ABARD, North

Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Cooperative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India anBank had their corporate loans affected after recession. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase of rates of corporate loans. Only few had attained breakeven and there were fluctuations in the rates of corporate loans.

Rate on Corporate loans of Banking and Financial Institutions before

Global recession


0

1

2

3

4

5

6

Abh

yuda

ya C

oope

rativ

e B

an

k Lt

d

Axi

s B

an

k Li

mite

d

Ba

nk

of M

ah

ara

shtr

a

Ca

thol

ic S

yria

n B

an

k

Citi

ban

k N

A

Citi

zen

Cre

dit B

an

k

Den

a B

an

k

Dev

elop

men

t Cre

dit B

an

k(D

CB

)

HD

FC

Ba

nk

Ltd

Indi

an

Ove

rsea

s B

an

k

Indu

stri

al D

evel

opm

ent

Ba

nk

of I

ndi

a L

td

Kot

ak

Ma

hin

dra

Ba

nk

Ltd

Rate on Corporate loans of Banking and Financial

Institutions after Global recession

Worse affectedStrongly affectedSomewhat affectedBadly affectedNot affected

Rate on Corporate loans after recession


Rate on Corporate loans of Banking and Financial Institutions after Global recession

Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank had their corporate loans affected after recession. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them

ntly increase of rates of corporate loans. Only few had attained breakeven and there were fluctuations in the rates of corporate loans.

Kot

ak

Ma

hin

dra

Ba

nk

Ltd

Ma

ha

nag

ar C

o-ope

rativ

e B

an

k Lt

d

NA

BA

RD

Ori

entia

l Ba

nk

of C

omm

erce

Sh

am

rao

Vith

al C

o-ope

rativ

e B

an

k Lt

d

Sou

thIn

dia

Ba

nk

Syn

dica

te B

an

k

Un

ion

Ba

nk

Of I

ndi

a

Vija

y B

an

k

Rate on Corporate loans of Banking and Financial

Institutions after Global recession

Worse affectedStrongly affectedSomewhat affectedBadly affectedNot affected

130

Table: 6.2.46- Number of policies of Banking and Financial Institutions affected by Global recession


Number of policies of Banking and Financial Institutions affected by Global recession

Before recession* After recession** Abhyudaya Cooperative Bank Ltd 5 1 Allahabad 5 1 Axis Bank Limited 4 4 Bank Of India 4 2 Bank of Maharashtra 4 3 Canara Bank 3 1 Catholic Syrian Bank 2 2 Central Bank Of India 2 1 Citibank NA 1 2 Citigroup Private Bank 1 2 Citizen Credit Bank 4 4 Corporation Bank 4 1 Dena Bank 5 1 Deutsche Bank 5 5 Development Credit Bank(DCB) 4 1 Export Import Bank Of India 3 1 HDFC Bank Ltd 1 2 ICICI Bank 1 3 Indian Overseas Bank 1 1 Indusind Bank Ltd 1 2 Industrial Development Bank of India Ltd (IDBI)

2 1



**Parameters of Rates on Car loans of Banking and Financial Institutions before **Parameters of Rates on Car loans of Banking and Financial Institutions before **Parameters of Rates on Car loans of Banking and Financial Institutions before **Parameters of Rates on Car loans of Banking and Financial Institutions before recession (recession (recession (recession ( 1 stands for Significantly decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 Significantly Increasing.

****Parameters of Rates on Car loans of Banking and Financial Institutions after reParameters of Rates on Car loans of Banking and Financial Institutions after reParameters of Rates on Car loans of Banking and Financial Institutions after reParameters of Rates on Car loans of Banking and Financial Institutions after recession cession cession cession ((((1 stands for Worse Affected, 2 stands for Strongly affected, 3 stands Somewhat affected,4 stands for Badly Affected and 5 stands for Not Affected.

131

Figure: 6.2.52-Number of policies of Banking and Financial Institutions before Global recession

Figure: 6.2.53-Number of policies of Banking and Financial Institutions after Global recession

Interpretation- From the above data and graph we find that most of these banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North

Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank have their policies affected by recession. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase in number of policies. Only few had attained breakeven and there were fluctuations in number of policies.

0

1

2

3

4

5

6

Abh

yuda

ya C

oope

rativ

e B

ank

Ltd

Axi

s B

ank

Lim

ited

Ba

nk o

f M

aha

rash

tra

Ca

thol

ic

Syr

ian

Ba

nk

Citi

bank

NA

Citi

zen

Cre

dit

Ba

nk

Den

a B

ank

Dev

elop

men

t C

redi

t B

ank

(DC

B)

HD

FC

Ba

nk L

td

Indi

an

Ove

rsea

s B

ank

Indu

stria

l Dev

elop

men

t B

ank

of

Indi

a L

td

Kot

ak

Ma

hind

ra B

ank

Ltd

Ma

hana

gar

Co-o

pera

tive

Ba

nk L

td

NA

BA

RD

Orie

ntia

l Ba

nk o

f C

omm

erce

Sha

mra

o V

itha

l Co-o

pera

tive

Ba

nk L

td

Sou

thIn

dia

Ba

nk

Syn

dica

te B

ank

Uni

on B

ank

Of

Indi

a

Vija

y B

ank

Number of policies of banking and Financial Institutions before Global

recession


Attained break even

No Impact

Fluctuations

Significantly increasing

Number of policie before recession


0

1

2

3

4

5

6

Abh

yuda

ya C

oope

rativ

e B

ank

Ltd

Axi

s B

ank

Lim

ited

Ba

nk o

f M

aha

rash

tra

Ca

thol

ic

Syr

ian

Ba

nk

Citi

bank

NA

Citi

zen

Cre

dit

Ba

nk

Den

a B

ank

Dev

elop

men

t C

redi

t B

ank

(DC

B)

HD

FC

Ba

nk L

td

Indi

an

Ove

rsea

s B

ank

Indu

stria

l Dev

elop

men

t B

ank

of

Indi

a L

td

Kot

ak

Ma

hind

ra B

ank

Ltd

Ma

hana

gar

Co-o

pera

tive

Ba

nk L

td

NA

BA

RD

Orie

ntia

l Ba

nk o

f C

omm

erce

Sha

mra

o V

itha

l Co-o

pera

tive

Ba

nk L

td

Sou

thIn

dia

Ba

nk

Syn

dica

te B

ank

Uni

on B

ank

Of

Indi

a

Vija

y B

ank

Number of policies of Banking and Financial Institutions after Global

recession

Worse Affected Strongly affectedSomewhat affected Badly affectedNot Affected

Number of policies after recession


132

Table: 6.2.47- Role of Branding on Banking and financial Institutions during Global recession

Name of the Banking and financial Institutions

Role of Branding on Banking and financial Institutions during Global recession

Before Recession* After Recession* Abhyudaya Cooperative Bank Ltd 1 1 Allahabad 1 1 Axis Bank Limited 2 1 Bank Of India 1 2 Bank of Maharashtra 1 2 Canara Bank 1 2 Catholic Syrian Bank 1 1 Central Bank Of India 1 1 Citibank NA 2 1 Citigroup Private Bank 1 1 Citizen Credit Bank 1 1 Corporation Bank 1 1 Dena Bank 1 1 Deutsche Bank 1 2 Development Credit Bank(DCB) 1 1 Export Import Bank Of India 2 1 HDFC Bank Ltd 1 1 ICICI Bank 1 1 Indian Overseas Bank 1 1 Indusind Bank Ltd 1 1 Industrial Development Bank of India Ltd (IDBI)

2 1



*Parameters of Role branding before and after recessionParameters of Role branding before and after recessionParameters of Role branding before and after recessionParameters of Role branding before and after recession ((((1 stands for Yes and 2 stands for No).

Figure: 6.2.54- Role of Branding on Banking and FGlobal recession

Figure: 6.2.55- Role of Branding on Banking and Frecession

Interpretation- The above data and graphs before and after recession indicate that banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar CoMahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential BaCommerce, Reserve Bank of India, Shamrao Vithal CoBank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank agree strongly that branding plays importancompany.

00.5

11.5

22.5

Abh

yuda

ya C

oope

rativ

e B

an

k Lt

d

Alla

ha

bad

Axi

s B

an

k Li

mite

d

Role of Branding of Banking and Financial Instituions before Global

Name of the Banking and Financial Instituitions

Role of Branding before recession

0

0.5

1

1.5

2

2.5

Abh

yuda

ya C

oope

rativ

e …

Alla

ha

bad

Axi

s B

an

k Li

mite

d

Ba

nk

Of

Indi

a

Ba

nk

of M

ah

ara

shtr

a

Role of Branding of the Banking and financial Institutions after Global Role of Branding after recession

Name of the banking and Financial

133

ole of Branding on Banking and Financial Institutions

ole of Branding on Banking and Financial Institutions

The above data and graphs before and after recession indicate that banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of

ia, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential BaCommerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank agree strongly that branding plays important role in building a

Axi

s B

an

k Li

mite

d

Ba

nk

Of

Indi

a

Ba

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of M

ah

ara

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a

Ca

na

ra B

an

k

Ca

thol

ic S

yria

n B

an

k

Cen

tra

l Ba

nk

Of

Indi

a

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ban

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A

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grou

p P

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Cre

dit B

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k

Cor

pora

tion

Ba

nk

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a B

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e B

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t Cre

dit B

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k(D

CB

)

Exp

ort I

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k O

f In

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HD

FC

Ba

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Ltd

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nk

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k

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sin

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Ba

nk

of

…

ING

Vys

a B

an

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Kot

ak

Ma

hin

dra

Ba

nk

Ltd

LIC

Ma

ha

nag

ar C

o-ope

rativ

e B

an

k Lt

d

Ma

hin

dra

Fin

an

ce

NA

BA

RD

Nor

th K

an

ara

GS

B C

oope

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e …

Ori

entia

l Ba

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of C

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Res

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Ba

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of I

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am

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an

k …

SID

BI

Sou

thIn

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Ba

nk

Role of Branding of Banking and Financial Instituions before Global recession

Yes No

Ba

nk

of M

ah

ara

shtr

a

Ca

na

ra B

an

k

Ca

thol

ic S

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n B

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k

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A

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grou

p P

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te B

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k

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Cre

dit B

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Cor

pora

tion

Ba

nk

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a B

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an

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Exp

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ICIC

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ING

Vys

a B

an

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Kot

ak

Ma

hin

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Ba

nk

Ltd

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Ma

ha

nag

ar C

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rativ

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Ma

hin

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Nor

th K

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B

…

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entia

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of C

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erve

Ba

nk

of I

ndi

a

Sh

am

rao

Vith

al C

o-…

SID

BI

Sou

thIn

dia

Ba

nk

Role of Branding of the Banking and financial Institutions after Global recession

yes No

inancial Institutions before

inancial Institutions after Global

The above data and graphs before and after recession indicate that banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of

ia, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of

operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of

operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank

t role in building a

Sou

thIn

dia

Ba

nk

Sta

te B

an

k O

f In

dia

(S

BI)

Syn

dica

te B

an

k

Uco

ba

nk

Un

ion

Ba

nk

Of I

ndi

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Un

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of I

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Role of Branding of Banking and Financial Instituions before Global

Sou

thIn

dia

Ba

nk

Sta

te B

an

k O

f In

dia

(S

BI)

Syn

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Role of Branding of the Banking and financial Institutions after Global

134

Table: 6.2.48- Role of Media on Banking and financial Institutions during Global recession


* Parameters of Role branding before and after recessionParameters of Role branding before and after recessionParameters of Role branding before and after recessionParameters of Role branding before and after recession ((((1 stands for Yes and 2 stands for No)

Name of the Banking and financial Institutions Role of Media on Banking and financial Institutions during Global recession

Before Recession* After Recession* Abhyudaya Cooperative Bank Ltd 1 2 Allahabad 1 2 Axis Bank Limited 1 1 Bank Of India 2 1 Bank of Maharashtra 2 1 Canara Bank 1 2 Catholic Syrian Bank 2 1 Central Bank Of India 2 1 Citibank NA 1 2 Citigroup Private Bank 1 1 Citizen Credit Bank 1 1 Corporation Bank 1 1 Dena Bank 1 1 Deutsche Bank 1 1 Development Credit Bank(DCB) 1 2 Export Import Bank Of India 2 1 HDFC Bank Ltd 1 1 ICICI Bank 2 1 Indian Overseas Bank 1 2 Indusind Bank Ltd 2 1 Industrial Development Bank of India Ltd (IDBI) 1 1 ING Vysa Bank 1 2 Kotak Mahindra Bank Ltd 1 1 LIC 1 1 Mahanagar Co-operative Bank Ltd 1 1 Mahindra Finance 1 1 NABARD 1 1 North Kanara GSB Cooperative Bank Ltd 1 1 Oriential Bank of Commerce 1 1 Reserve Bank of India 1 1 Shamrao Vithal Co-operative Bank Ltd 1 1 SIDBI1 1 1 SouthIndia Bank 1 1 State Bank Of India (SBI) 1 1 Syndicate Bank 1 1 Uco bank 1 1 Union Bank Of India 1 1 United Bank of India 2 1 Vijay Bank 1 1

135

Figure: 6.2.56- Role of Media on Banking and Financial Institution before Global recession

Figure: 6.2.57- Role of Media on Banking and Financial Institutions after Global recession

Interpretation- The above data and graphs indicate that banking and financial institutions Banks of Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank agree strongly that Media plays an important role in building the brand image after recession. Most of the Banking and financial Institutions were taking help of Media before recession to promote their products at a small scale level but after recession it became a necessity to advertise in media in order to sustain their position in the market.

0

1

2

3

Role of Media of Banking and Financial Instituitionsbefore Global recession

Yes No

Role of Media before recession


0

0.5

1

1.5

2

2.5

Role of Media Banking and Financial Instituitionsafter Global recession

Yes No

Role of Media after recession


136

Table: 6.2.49- Challenges faced by the Banking and financial Institutions during Global recession


Challenges faced by Banking and financial Institutions during Global recession

Rationalizing Personnel

costs

Debt restructuri

ng

Cost savings

measures

Intensifying

Alliances

Budget

reduction Abhyudaya Cooperative Bank Ltd 1 2 3 4 5

Allahabad 1 2 0 4 5 Axis Bank Limited 1 2 3 4 0 Bank Of India 1 2 3 4 5 Bank of Maharashtra 1 0 3 4 5 Canara Bank 1 2 3 4 5 Catholic Syrian Bank 1 0 3 4 5 Central Bank Of India 1 2 3 4 5 Citibank NA 1 0 0 0 5 Citigroup Private Bank 1 2 3 4 5 Citizen Credit Bank 1 2 0 4 5 Corporation Bank 1 2 3 4 5 Dena Bank 1 2 3 4 5 Deutsche Bank 1 2 3 4 5 Development Credit Bank(DCB) 1 2 3 4 5 Export Import Bank Of India 1 2 3 4 5 HDFC Bank Ltd 1 2 3 4 5 ICICI Bank 1 2 3 4 5 Indian Overseas Bank 1 2 3 4 5 Indusind Bank Ltd 1 2 3 4 5 Industrial Development Bank of India Ltd

1 2 3 4 5 ING Vysa Bank 1 2 3 4 5 Kotak Mahindra Bank Ltd 0 2 3 4 5 LIC 1 2 0 4 5 Mahanagar Co-operative Bank Ltd

1 2 3 4 5 Mahindra Finance 1 2 3 4 5 NABARD 1 2 3 4 5 North Kanara GSB Cooperative Bank Ltd

1 2 3 4 5 Oriential Bank of Commerce 1 2 3 4 5 Reserve Bank of India 1 2 3 4 5 Shamrao Vithal Co-operative Bank Ltd

1 2 0 4 5 SIDBI 1 2 3 4 0 SouthIndia Bank 1 2 3 4 5 State Bank Of India (SBI) 1 0 3 4 5 Syndicate Bank 1 2 3 4 5 Uco bank 1 0 3 4 5 Union Bank Of India 1 0 3 0 5 United Bank of India 1 2 0 4 5 Vijay Bank 0 0 3 4 5

Source: Collected through Questionnaires and Interview Method

137

Figure: 6.2.58- Challenges faced by the Banking and Financial Institutions during Global recession

Interpretation- From the above data and graph the banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING

Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank face challenges in terms of Rationalizing Personnel costs, Debt restructuring, Cost savings measures, and Intensifying Alliances and Budget reductions.

02468

10121416

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Challenges faced by the Banking and financial Institutions during Global recession

Rationalizing Personnel costsDebt restructuring

Cost savings measures Intensifying Alliances

Budget reductions

Challenges


138

H0: 2. There is no considerable difference in the development of banking and

Financial Institutions during the recession period.

Parametric Test- T- test

Table: 6.2.50.1- Hypothesis Results of Parametric T test Statistics - There is no

considerable difference in development of banking and Financial Institutions during

the recession period.

T- test Statistics


Mean Differen

ce

Standard

Deviation

Difference df

Calculated

Statistic T Value at 95% confidence level

Tabulated T Value

at 95% confide

nce level

Growth of Banking and financial Institutions 0.102 1.83 38 0.35 1.687 Rate on Home loans of Banking and Financial Institutions 0.128 1.080 38

0.73

1.687

Rate on Car loans of Banking and Financial Institutions 0.081 1.69 38

0.3

1.687

Rate on Corporate loans of Banking and Financial Institutions 0.051 1.21 38

0.26

1.687

Number of policies of Banking and Financial Institutions 0.35 1.64 38

1.34

1.687

Role of Branding on Banking and financial Institutions 0.05 0.62 38

0.5

1.687

Role of Media on Banking and financial Institutions 0.25 0.62 38

0.25

1.687


Interpretation- The hypothesis results of Parametric T Test of these banking and financial institutions Banks of Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay are as follows.

Since the calculated Statistic T value at 5% level of significance is less than the Tabulated T value 1.687 for all the parameters Growth of banking and financial institutions, Rate on home loans, Rate on car loans, Rate on corporate loans, Number of

139

policies, Role of branding, Role of Media before and after Global recession and Challenges faced . Hence we accept H0 and conclude that there is no considerable difference in the development of Banking and Financial Institutions during the recession period.

Non parametric test- Chi square test

Table: 6.2.50.1.1- Hypothesis Results of Non Parametric Chi square test Statistics-

There is no considerable difference in the development of banking and Financial

Institutions during the recession period.

Chi square test Statistics

Particulars

Test Value = 39 Calculated

Statistic Chi square Value at 95% confidence

level df


Value at 95% confidence

level Growth of Banking and financial Institutions 0.1092 38 22.876 Rate on Home loans of Banking and Financial Institutions 0.9999 38 22.876 Rate on Car loans of Banking and Financial Institutions 0.642 38 22.876 Rate on Corporate loans of Banking and Financial Institutions 0.998 38 22.876 Number of policies of Banking and Financial Institutions 0.733 38 22.876 Role of Branding on Banking and financial Institutions 0.097 38 22.876 Role of Media on Banking and financial Institutions 0.024 38 22.876


Interpretation - The hypothesis results of Non parametric test of these banking and financial institutions Banks of Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay are as follows:

Since the Calculated statistic Chi square value at 5% level of significance is less than the Tabulated Chi square value 22.876 for all the parameters Growth of banking and financial institutions, Rate on home loans, Rate on car loans, Rate on corporate loans, Number of policies, Role of branding, Role of Media before and after Global recession and Challenges faced . Hence we accept H0 and conclude that there is no considerable difference in the development of Banking and Financial Institutions during the recession period.

140


Table: 6.2.51-Impact of budgetary policies on Banking and Financial Institutions during Global Recession


Impact of budgetary policies on Banking and Financial Institutions during Global Recession Before recession* After Recession*

Abhyudaya Cooperative Bank Ltd 2 1 Allahabad 1 1 Axis Bank Limited 1 1 Bank Of India 1 1 Bank of Maharashtra 1 1 Canara Bank 2 2 Catholic Syrian Bank 1 1 Central Bank Of India 1 2 Citibank NA 1 2 Citigroup Private Bank 1 1 Citizen Credit Bank 2 1 Corporation Bank 2 1 Dena Bank 1 2 Deutsche Bank 1 2 Development Credit Bank(DCB) 2 1 Export Import Bank Of India 1 1 HDFC Bank Ltd 2 1 ICICI Bank 1 1 Indian Overseas Bank 2 2 Indusind Bank Ltd 1 2 Industrial Development Bank of India Ltd(IDBI)

1 2



*Parameters Parameters Parameters Parameters Impact of budgetary policies on Banking and Financial Institutions before and after recession Impact of budgetary policies on Banking and Financial Institutions before and after recession Impact of budgetary policies on Banking and Financial Institutions before and after recession Impact of budgetary policies on Banking and Financial Institutions before and after recession (1 stands for Yes and 2 stands for No).

141

Figure: 6.2.59- Impact of Budgetary policies on Banking and Financial Institutions before Global recession

Figure: 6.2.60- Impact of Budgetary policies on Banking and Financial Institutions after Global recession

Interpretation- The above data and graph shows the impact of budget before and after recession on these banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of

India (SBI),Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank. These banks agree that the budgetary policies of government have impact on their budget. Before recession, the Abhyudaya Cooperative, Canara Bank, Citizen Credit, Corporation, HDFC, Indian Overseas Industrial Development ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative Bank Ltd, and Reserve Bank of India were not affected by the budgetary policies. After recession the Canara Bank,Central Bank Of India Citibank NA, Dena Bank, Deutsche Bank Indian Overseas Bank, Indusind Bank Ltd, Industrial Development Bank of India Ltd, Syndicate Bank Union Bank and United Bank of India were not affected by the budgetary policies.

0

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Impact of budgetary policies on Banking and Financial Institutions

before Global recession

yes

No

Impact of budgetary policies before recession

Name of Banking and Financial Institutions

0

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Impact of Budgetary policies on Banking and Financial Institutions

after Global recession

Yes

No

Impact of Budgetary policies after recession


142

Table: 6.2.52-Impact of Global Recession on new projects of Banking and Financial Institutions

Name of the Banking and financial Institutions Yes No Abhyudaya Cooperative Bank Ltd 0 2 Allahabad 1 0 Axis Bank Limited 1 0 Bank Of India 1 0 Bank of Maharashtra 0 2 Canara Bank 1 0 Catholic Syrian Bank 1 0 Central Bank Of India 1 0 Citibank NA 1 0 Citigroup Private Bank 1 0 Citizen Credit Bank 1 0 Corporation Bank 0 2 Dena Bank 1 0 Deutsche Bank 1 0 Development Credit Bank(DCB) 0 2 Export Import Bank Of India 1 0 HDFC Bank Ltd 1 0 ICICI Bank 1 0 Indian Overseas Bank 0 2 Indusind Bank Ltd 1 0 Industrial Development Bank of India Ltd(IDBI) 1 0 ING Vysa Bank 0 2 Kotak Mahindra Bank Ltd 1 0 LIC 1 0 Mahanagar Co-operative Bank Ltd 1 0 Mahindra Finance 1 0 NABARD 1 0 North Kanara GSB Cooperative Bank Ltd 1 0 Oriential Bank of Commerce 1 0 Reserve Bank of India 1 0 Shamrao Vithal Co-operative Bank Ltd 1 0 SIDBI 1 0 SouthIndia Bank 1 0 State Bank Of India (SBI) 1 0 Syndicate Bank 1 0 Uco bank 0 2 Union Bank Of India 1 0 United Bank of India 1 0 Vijay Bank 0 2


Parameters Parameters Parameters Parameters Impact of Global Recession on Impact of Global Recession on Impact of Global Recession on Impact of Global Recession on new projects of new projects of new projects of new projects of Banking and financial institutions Banking and financial institutions Banking and financial institutions Banking and financial institutions (1 stands for Yes and 2 stands for No).

143

Figure: 6.2.61- Impact of Global Recession on new projects of Banking and Financial Institutions

Interpretation- From the above data and graph we can analyze that the banking and Financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-

operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI),Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank had their future projects postponed due to the slowdown of the economy.

The Abhyudaya Cooperative Bank Ltd, Bank of Maharashtra, Corporation Bank, Development Credit Bank (DCB), Indian Overseas Bank, ING Vysa Bank, Uco bank, and Vijay Bank did not have any impact of recession on their future projects.

0

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Impact of Global Recession on new projects of Banking and Financial Institutions

Yes No

Impact of Global Recession on new projects


144

Table: 6.2.53- Risk of second recession on Banking and Financial Institutions

Name of the Banking and financial Institutions Yes No Abhyudaya Cooperative Bank Ltd 1 0 Allahabad 1 0 Axis Bank Limited 1 0 Bank Of India 0 2 Bank of Maharashtra 1 0 Canara Bank 0 2 Catholic Syrian Bank 1 0 Central Bank Of India 0 2 Citibank NA 1 0 Citigroup Private Bank 0 2 Citizen Credit Bank 1 0 Corporation Bank 1 0 Dena Bank 1 0 Deutsche Bank 1 0 Development Credit Bank(DCB) 1 0 Export Import Bank Of India 1 0 HDFC Bank Ltd 1 0 ICICI Bank 1 0 Indian Overseas Bank 1 0 Indusind Bank Ltd 1 0 Industrial Development Bank of India Ltd(IDBI) 1 0 ING Vysa Bank 0 2 Kotak Mahindra Bank Ltd 1 0 LIC 1 0 Mahanagar Co-operative Bank Ltd 1 0 Mahindra Finance 0 2 NABARD 1 0 North Kanara GSB Cooperative Bank Ltd 1 0 Oriential Bank of Commerce 0 2 Reserve Bank of India 1 0 Shamrao Vithal Co-operative Bank Ltd 1 0 SIDBI 1 0 SouthIndia Bank 0 2 State Bank Of India (SBI) 1 0 Syndicate Bank 1 0 Uco bank 1 0 Union Bank Of India 0 2 United Bank of India 1 0 Vijay Bank 0 2


*Parameters Parameters Parameters Parameters Risk of second recession onRisk of second recession onRisk of second recession onRisk of second recession on Banking and Financial Institutions (Banking and Financial Institutions (Banking and Financial Institutions (Banking and Financial Institutions (1 stands for Yes and 2 stands for

No).

145

Figure: 6.2.62- Risk of Second Recession on Banking and Financial Institutions

Interpretation- The above data and graph give a picture that most of these banking and financial institutions Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank of Maharashtra, Catholic Syrian Bank, Citibank NA, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, State Bank Of India (SBI), Syndicate Bank, Uco bank, United Bank of India and feel that there is risk of having second recession.

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Risk of Second Recession on Banking and Financial Institutions

Yes No

Risk of Second Recession

Name of the Banking and Financial Instiututions

146

H0: 3. There is no impact of Government Policies to minimize the effect of Global

Recession on Indian Banking and Financial Institutions.

Parametric test-T test

Table: 6.2.54.1- Hypothesis Results of Parametric T test Statistics- There is no impact

of Government Policies to minimize the effect of Global Recession on Indian Banking and

Financial Institutions.

T test Statistics Particulars Test Value = 39

Mean Differe

nce

Standard Deviation Difference Df


value at 95%

confidence level

Tabulated T Value at

95% confidence

level

Impact of Budgetary Policies on Banking and Financial Institutions 0.0513 0.20138 38

0.46622

1.687

Impact of Global Recession on new projects of Banking and Financial Institutions 0.3846 1.22723 38

1.95725

1.687

Risk of second recession on Banking and Financial Institutions 0.3846 1.20579 38

1.99161

1.687


Interpretation- The hypothesis results of Parametric T Test of the banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay are as follows:

Since the calculated Statistic T value at 5% level of significance is less than the Tabulated T value 1.687 for all the parameters Impact of budget, Impact on future projects and Risk of second recession. Hence we accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian Banking and Financial Institutions.

147

Non Parametric Test- Chi-Square Test

Table: 6.2.54.1.1- Hypothesis Results of Non Parametric Chi square test - Chi

square test Statistics- There is no impact of Government Policies to minimize the

effect of Global Recession on Indian banking and Financial Institutions



Calculated Statistic Chi

square Value at 95% confidence

level df

Tabulated Chi square value at 95% confidence

level Impact of Budgetary Policies on Banking and Financial Institutions during recession

0.999870149

38

22.876


Interpretation- The Hypothesis results of Non Parametric test of the Banking and financial institutions Abhyudaya Cooperative, Allahabad, Axis, BOI, Maharashtra, Canara ,Catholic Syrian, Central Bank, Citibank NA, Citigroup Private Bank, Citizen Credit, Corporation, Dena, Deutsche, Development Credit (DCB), Export Import HDFC, ICICI, Indian Overseas, Indusind, Industrial Development, ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative, Mahindra Finance, NABARD, North Kanara GSB Cooperative, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative, SIDBI, SouthIndia, State Bank Of India (SBI), Syndicate, Uco, Union Bank Of India, United and Vijay are as follows: Since the calculated Statistic Chi square Value at 5% level of significance is less than the Tabulated Chi square value 22.876 for the parameter Impact of budgetary Policies. Hence we accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian Banking and Financial Institutions.

148

Table: 62.55.1-Overall Economy of the Banking and Financial Sector With Respect To the Performance of Banking and Financial Institutions


Figure: 6.2.63.1- Overall Economy of the Banking and Financial Sector with respect to the Performance of the Banking and Financial Institutions

0

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100

150

200

250

300

350

400

450

500

Overall Economy Of The Banking And Financial Sector With Respect To The Performance Of Banking And Financial Institutions

2004 2005 2006 2007 2008 2009 2010 2011

Yearly representation of Parameters

Parameters

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Parameters Budget 13.5 15.9 13.67 14.62 24.69 20.29 19.73 23.23 Sales 5.15 7.10 8.71 9.21 10.56 19.65 12.45 11.53 Net Profit 18.41 22.4 30.13 39.92 52.57 33.39 44.59 49.65 Taxes paid 13.87 18.1 15.34 18.01 21.13 17.18 18.68 21.58 Number of Employees 331.0 389. 385.79 423.7 457.4 285.05 307.9 341.5Total Assets 29.97 35.6 34.99 38.58 41.01 30.42 38.11 41.34 Total Liabilities 27.42 32.6 36.90 41.21 43.15 37.26 39.07 42.35 Investments 10.60 13.6 16.44 18.57 20.28 17.04 20.13 21.56 Performance of shares/ stocks 14.87 17.9 19.5 23.54 23.99 22.37 26.75 28.14 Savings and Tern Deposits 7.29 10.0 11.80 14.66 16.56 14.25 15.77 17.48 Remittances /Foreign currencies

7.29 10.01

11.80 14.66 16.56 14.25 15.77 17.48

Equity 50.85 60.4 66.20 66.64 68.76 59.86 68.48 70.35

149

Table: 6.2.55.1.1-Overall Economy of the Banking and Financial Sector With Respect To the Development through Initiatives Taken By Indian Government

Parameters Growth before recession

Growth of after recession

Rates on Home loans before Global recession

Rates on Home loans after Global recession

Rate on Car loans o before Global recession

Rate on Car loans after Global recession

Rate on Corporate loans before Global recession

Rate on Corporate loans after Global recession

Number of policies before Global recession

Number of policies after Global recession


Role of Branding after recession



Challenges

Impact of Budgetary policies before recession

Impact of budgetary policies after recession

Impact of Global recession on new projects

Risk of second recession

Parameters


0.5 0.1 0.1 0.02 0.3

Attained breakeven

0.5 0.7 0.3 0.4 0.4

No change 0.1 0..1 0.3 0.6 0.2

Fluctuations 0.8 0.5 0.5 0.4 1.0


2.4 1.9 2.7 2.4 0.8


0.02


0.4

No impact 0.3


1.3


1.6

Worse affected

0.5 0.05

0.05

0.4

Strongly affected

0.6 0.3 0.1 0.5

Somewhat affected

0.2 0.3 0.5 0.2

Badly 0.4 0.5 1.9 0.5

Not affected 0.3 2.7 1.1 0.9

Yes 0.7 0.8 0.7 0.7 0.6

0.7 0.8 0.7

No 0.6 0.4 0.5 0.5 0.6

0.6 0.4 0.5

Rationalizing Personnel costs

0.9

Debt restructuring

1.6

Cost savings measures

2.5

Intensifying Alliances

3.8

Budget reductions

4.7


150

Figure: 6.2.63.1.1- Overall Economy of the Banking and Financial Sector with respect to the Development through Initiatives taken by Indian Government

Interpretation- The overall economy of the Banking and financial sector The above data and graphs indicates that the Banking and financial institutions Banks of Abhyudaya Cooperative Bank Ltd, Allahabad, Axis Bank Limited, Bank Of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank Of India, Citibank NA, Citigroup Private Bank, Citizen Credit Bank, Corporation Bank, Dena Bank, Deutsche Bank, Development Credit Bank(DCB), Export Import Bank Of India, HDFC Bank Ltd, ICICI Bank, Indian Overseas Bank, Indusind Bank Ltd , Industrial Development Bank of India Ltd, ING Vysa Bank, Kotak Mahindra Bank Ltd, LIC, Mahanagar Co-operative Bank Ltd, Mahindra Finance, NABARD, North Kanara GSB Cooperative Bank Ltd, Oriential Bank of Commerce, Reserve Bank of India, Shamrao Vithal Co-operative Bank Ltd, SIDBI, SouthIndia Bank, State Bank Of India (SBI), Syndicate Bank, Uco bank, Union Bank Of India, United Bank of India and Vijay Bank are as follows: Most of these banks had their budget affected. The reduction of budget of Banking and financial institutions was due to the economy and current

market conditions that affected the financial forecast of these institutions. The changes in the inflation rate and stock market conditions directly affected the organization's net worth and its ability to generate funds or loans. After 2009 there is slight improvement in the allocation of budget as many reforms were taken by Government of India through Reserve Bank of India. Due to the sliding economy that affected the Indian banking and financial industry with sale of deposits and policies dipping and many joint ventures were being put on hold. The net profit earned by the Banking and financial Institutions vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.The taxes paid by the Banking and financial Institutions vary as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.Numerous policies are undertaken to improve the sales and net profit. The change was due to sudden reduction in creation of employment; new appointees the organizations were sent back home with advance three months salary due to

0

2

4

6

8

10

Overall Economy of the Banking and Financial Sector With Respect To the Development through Initiatives Taken By Indian Government

Growth of after recession Rates on Home loans before Global recessionRates on Home loans after Global recession Rate on Car loans o before Global recessionRate on Car loans after Global recession Rate on Corporate loans before Global recessionRate on Corporate loans after Global recession Number of policies before Global recessionNumber of policies after Global recession Role of Branding before recessionRole of Branding after recession Role of Media before recessionRole of Media after recession Challenges Impact of Budgetary policies before recession Impact of budgetary policies after recessionImpact of Global recession on new projects Risk of second recession

Parameters

Parameters

151

company policy of cutting costs and salary of many employees were reduced by twenty percent of their actual salary. The decline in investments began in the year 2007 as the investments of assets began to stagnate as the operations and sales started to slow down due to the financial crisis in the world. There was decline in liabilities as companies had reduced in borrowing funds from the banks and other financial institutions or from money lenders. Even banks were facing difficulties in getting funds from their customers. The share or stock rates of these institutions have been drastically fallen causing agnosticism. The reduction of sales and profits of these banking and financial institutions in terms of policies, saving and term deposits. The reduction of sales and profits of these banking and financial institutions in terms of policies, saving and term deposits. The other factors include falling demand for policies, falling rupee value, rising of inflation and unemployment. Earlier to the recession there were many tourists to India who would visit religious places, few for holidaying in Goa or Mangalore. Even for business and for attending conferences foreign delegates used to visit India. Even we have non resident Indians staying in abroad who used visit their hometown once in a while. Due to pay cut and laying of workforce during the recession, there was decline of foreign tourists in India which indirectly affects the foreign remittances to the bank. The fluctuations in the operations of the Banking and Financial sector from 2004-2010 vary mainly due to global recession in 2009 which sent threat flaps to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market. Before the recession, these banking and financial institutions Catholic, Citigroup Private, Corporation, and Dena, NABARD, NKGSB Co -operative, Oriential Bank of Commerce, Uco and United had attained break even in terms of growth. The rest of the banking and financial institutions showed no change in terms of growth, showed fluctuations in the growth. Showed significantly decreasing in the growth and significantly increasing in the growth. After recession Most of them had significantly and slightly positive impact on their growth, few of them had significantly and slightly negative impact on their growth and the rest did not show any impact on their growth. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before

recession most of them had significantly increase of rates of Home loans. Only few had attained breakeven and there were fluctuations in the rates of home loans. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase of rates of Car loans. Only few had attained breakeven and there were fluctuations in the rates of Car loans. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase of rates of corporate loans. Only few had attained breakeven and there were fluctuations in the rates of corporate loans. Most of them had worse and badly affected, few of them had strongly and somewhat affected their growth and the rest were not affected by recession. Before recession most of them had significantly increase in number of policies. Only few had attained breakeven and there were fluctuations in number of policies. Most of the Banking and financial Institutions were taking help of Media before recession to promote their products at a small scale level but after recession it became a necessity to advertise in media in order to sustain their position in the market. Most of these Institutions face challenges in terms of Rationalizing Personnel costs, Debt restructuring, Cost savings measures, and Intensifying Alliances and Budget reductions. These banks agree that the budgetary policies of government have impact on the budget. Before recession, the Abhyudaya Cooperative, Canara Bank, Citizen Credit, Corporation, HDFC, Indian Overseas Industrial Development ING Vysa, Kotak Mahindra, LIC, Mahanagar Co-operative Bank Ltd, and Reserve Bank of India were not affected by the budgetary policies. After recession the Canara Bank,Central Bank Of India Citibank NA, Dena Bank, Deutsche Bank Indian Overseas Bank, Indusind Bank Ltd, Industrial Development Bank of India Ltd, Syndicate Bank Union Bank and United Bank of India were not affected by the budgetary policies. The Abhyudaya Cooperative Bank Ltd, Bank of Maharashtra, Corporation Bank, Development Credit Bank (DCB), Indian Overseas Bank, ING Vysa Bank, Uco bank, and Vijay Bank did not have any impact of recession on their new projects. Most of the Banking institutions feel that there are chances of second recession.

152

6.3 HOSPITALITY INDUSTRIES

The lengthened unpredictability and turbulence in the economy of the world had yielded

fresh worries for rising hospitality markets across the globe. The recession drifts and

shortage of assurance in business has placed the development of hospitality industry in a

highly shaky situation. As the Hospitality industry is associated with the tourism sector,

the arrival of Foreigners to any country gets affected due to the downturn of economy.

The development in terms of inflation and exchangeability of the market seems to be

unappealing for many participants of Hospitality industries in rising markets. The funding

for fresh assignments has become difficult and to bring the fresh projects to existence will

take more time. Currently many Hotel chains of foreign origin like Marriott

International, Intercontinental Hotels Group are laying out hotels in India and many

foreign origin tourism operators are launching their business activities from India. The

upheaval in worldwide financial markets had rendered fresh fears for the hospitality

industry. India had a greatest drop in corporate travel spending falling to twenty five

percent in the Year-wise 2009 compared to Year-wise 2008. Growth rate of the aggregate

sale of hotel companies fell down to nine point one percent during December 2008

quarter from growth rate of seventeen point four percent during Dec.2007 quarter. There

was decline in India's average annual Gross Domestic Product growth from historical

high of approximately eleven percent in September 2006 and a record low of

approximately six percent in December 2004. The Year-wise 2008-2009 was a haunting

one for the Indian tourism and Hotel industry with terror attacks in Mumbai and

economic down turn around the world affecting the performance of industries. The

performance has to be improved which is possible only through improvement in quality

of Food & Beverage which includes operations of banquet, health club, memberships

from clubs and other accessory services. The efficient use of technology and world class

systems to monitor the cost for Hospitality sector has to be increased to ascertain that the

margins for profit remain uniform.

For the purpose of data analysis, one hundred and twenty four companies are selected.

There are twenty nine questions framed in the form of questionnaire and these questions

are divided into three parts as per the objectives and hypothesis.

153

1. To understand and be acquainted with the global recession that has affected the

Hospitality industries of India.

Table: 6.3.56- Budget of the Hospitality industries during Global recession

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Budget of the Hospitality Industries

In Crores

Ajanta Hotel 11 10.15 15.1 14.2 11.1 6 22 18 Ambassador Hotel 6.9 5.86 7.1 7.67 8.1 9.9 18 15 Amsons Tours And Travels Pvt Ltd 10.18 9.12 10.9 7.22 11.18 8.78 11.6 9.89 Bawa Continental Hotel 2.03 3.26 7.8 6.06 11.57 7.31 28.2 11.74 Benzy Palace 9.74 3.18 11.47 10.25 11.9 18.25 14.25 12.59 Chateau Windsor Hotel 43 0.55 1.8 0.78 24 0.4 0.35 0.25 Columbus Hotel 12.25 10.15 22.25 14.21 23.15 17.44 22.24 21.12 Comfort Inn Heritage 14 10.05 18.1 16.02 21.1 26 32 28 Cottage Hotel 0.6 0.45 1.7 0.7 35 10 0.25 0.15 Dattakrupa Travels 11.9 11 13.1 12.67 15 9.1 13 11 Elite Air Travel & Tours 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89 Emerald Hotel 7.74 5.18 11.47 10.25 21.9 19.25 24.25 22.59 Empire Royale Hotel 6.9 5.86 7.1 7.67 8.1 9.9 18 10 En-Route Tours & Holidays 23 14.1 24 21.1 34 39 43 41.55 Golden Manor Hotel 11 10.05 15.1 14.02 11.1 6 22 18 Grant Hotel 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Greenland Holidays 13.89 12.3 14.09 16.8 11 13 23 21.3 Holiday Inn 10.1 9 12.1 11.67 13.9 14 16 15 Host-Inn International 43 0.55 1.8 0.78 24 0.4 0.35 0.25 Ibis Hotel 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12 Imperial Palace Hotel 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25 InterContinental Marine Drive 12.25 10.15 22.25 14.21 23.15 17.44 22.24 21.12 ITC Grand Central 14 10.05 18.1 16.02 21.1 26 32 28 Kings International Hotel 7.74 5.18 11.47 10.25 21.9 19.25 24.25 22.59 Kohinoor Continental 6.9 5.86 7.1 7.67 8.1 9.9 18 10 Legend Hotel 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89 Leela Kempinski Hotel 2.03 3.26 7.8 6.06 11.57 7.31 28.2 11.74 Lotus Suite Hotel 9.74 3.18 11.47 10.25 11.9 18.25 14.25 12.59 Magic Tours And Holidays Pvt Ltd 11 10.05 15.1 14.02 11.1 6 22 18 Maharashtra Tourism Development Corporation

9.74 4.18 11.47 10.25 11.9 8.25 14.25 12.59

Milan International Hotel 23 14.1 24 21.1 34 39 43 41.55 Oakwood Premier 10.1 9 12.1 11.67 13.9 14 16 15 Oberoi Hotel 43 0.55 1.8 0.78 24 0.4 0.35 0.25 Palms Hotel 14 10.05 18.1 16.02 21.1 26 32 28 Panorama Tours 11.9 11 13.1 12.67 15 9.1 13 11 Paradise Hotel 14.9 12.9 16.1 15.67 17.1 11.9 15 13 Park Hotel 0.078 0.67 0.38 0.68 1.9 35 0.5 0.48 Regent Hotel 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89 Taj Hotel 6.9 5.86 7.1 7.67 8.1 9.9 18 10 Travel Port Holidays India Pvt. Ltd. 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Tunga Hotel 2.03 3.26 7.8 6.06 11.57 7.31 28.2 11.74


154

Figure: 6.3.64- Budget of the Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their budget affected. The reduction of budget of the Hospitality was due to current market conditions that impaired the financial forecast of most of the aviation industries. The legislative changes had a direct impact on budget projections. If the businesses or industries are aware of pending legislation then they can plan accordingly before preparing the budget.

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Budget of the Hospitality Industries during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Budget

Name of the Hospitality Industries

155

Table: 6.3.57- Procurement of Raw materials of Hospitality Industries during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Procurement of Raw materials of Hospitality Industries in tonnes

Ajanta Hotel 12.6 10.5 14.4 13.2 15.45 8.4 10.4 9.5

Ambassador Hotel 2.32 1.75 4.5 3.27 3 2.4 3.4 1.3

Amsons Tours And Travels Pvt Ltd 5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5

Bawa Continental Hotel 8.16 7.12 10.19 9.22 10.18 7.78 9.6 8.9

Benzy Palace 6.9 5.86 7.1 7.67 8.1 9.9 18 15

Chateau Windsor Hotel 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15

Columbus Hotel 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

Comfort Inn Heritage 10.1 9 12.1 11.67 13.9 14 16 15

Cottage Hotel 14 10.05 18.1 16.02 21.1 26 32 28

Dattakrupa Travels 13.89 12.3 14.09 16.8 11 13 18 14.3

Elite Air Travel & Tours 23 14.1 24 21.1 34 39 43 41.55

Emerald Hotel 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Empire Royale Hotel 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12

En-Route Tours & Holidays 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25

Golden Manor Hotel 12.25 10.15 22.25 14.21 23.15 17.44 22.24 21.12

Grant Hotel 10 9 12.15 11.6 12.7 6 8.9 7

Greenland Holidays 0.6 0.45 1.7 0.7 35 10 0.25 0.15

Holiday Inn 11.9 11 13.1 12.67 15 9.1 13 11

Host-Inn International 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Ibis Hotel 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

Imperial Palace Hotel 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89

InterContinental Marine Drive 7.74 1.18 11.47 10.25 21.9 19.25 24.25 22.59

ITC Grand Central 10 9 12.15 11.6 12.7 6 8.9 7

Kings International Hotel 0.6 0.45 1.7 0.7 5 5 5.25 5.15

Kohinoor Continental 11.9 11 13.1 12.67 15 9.1 13 11

Legend Hotel 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Leela Kempinski Hotel 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

Lotus Suite Hotel 6.16 6.12 10.9 8.22 11.18 8.78 11.6 9.89

Magic Tours And Holidays Pvt Ltd 7.74 5.18 12.47 11.25 13.9 9.25 14.25 10.59

Maharashtra Tourism Development Corporation

7.8 5.6 7.1 7.67 8.1 8.9 15 11

Milan International Hotel 8.16 7.12 10.19 9.22 10.18 7.78 9.6 8.9

Oakwood Premier 6.9 5.86 7.1 7.67 8.1 9.9 18 15

Oberoi Hotel 12.6 10.5 14.4 13.2 15.45 8.4 10.4 9.5

Palms Hotel 2.32 1.75 4.5 3.27 3 2.4 3.4 1.3

Panorama Tours 5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5

Paradise Hotel 14 10.05 18.1 16.02 21.1 26 32 28

Park Hotel 13.89 12.3 14.09 16.8 11 13 18 14.3

Regent Hotel 23 14.1 24 21.1 34 39 43 41.55

Taj Hotel 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15

Travel Port Holidays India Pvt. Ltd. 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

Tunga Hotel 10.1 9 12.1 11.67 13.9 14 16 15


156

Figure: 6.3.65- Procurement of Raw materials of Hospitality Industries during Global recession

Interpretation- The above data and graph gives a picture that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their procurement affected as compared to the previous Year-wises from 2004-2008. In order provide good service, it is necessary to have cooperation not only within the hospitality industry, but also from large number of supportive industries. The procurement of raw materials in terms of providing food, beverages and entertainment for the customers was affected due to the increase in the prices of daily commodities like meat fish and vegetables.

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Procurement of Raw materials of Hospitality Industries during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Procurement of Raw material


157

Table: 6.3.58- Production of the Hospitality Industries during Global Recession

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Production of Hospitality Industries

in Crores

Ajanta Hotel 3.32 2.75 4.5 4.27 5 3.4 4.4 3.8

Ambassador Hotel 5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5

Amsons Tours And Travels Pvt Ltd 14 10.05 18.1 16.02 21.1 26 32 28

Bawa Continental Hotel 13.89 12.3 14.09 16.8 11 13 18 14.3

Benzy Palace 23 14.1 24 21.1 34 39 43 41.55


Columbus Hotel 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6


Cottage Hotel 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Dattakrupa Travels 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12

Elite Air Travel & Tours 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25

Emerald Hotel 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12

Empire Royale Hotel 8 7 11.15 10.6 12.7 6 8.9 7

En-Route Tours & Holidays 0.6 0.45 1.7 0.7 5 6 8.25 7.15

Golden Manor Hotel 11.9 11 13.1 12.67 15 9.1 13 11

Grant Hotel 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Greenland Holidays 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

Holiday Inn 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89

Host-Inn International 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59

Ibis Hotel 10 9 12.15 11.6 12.7 6 8.9 7

Imperial Palace Hotel 0.6 0.45 1.7 0.7 5 4 7.25 7.15


ITC Grand Central 2.08 1.05 5.09 4.1 7.09 5.15 6.78 6

Kings International Hotel 10.1 9 12.1 11.67 13.9 14 16 15

Kohinoor Continental 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25

Legend Hotel 14 10.05 18.1 16.02 21.1 26 32 28

Leela Kempinski Hotel 3.89 2.3 4.09 6.8 7 5 8 7.3

Lotus Suite Hotel 23 14.1 24 21.1 34 39 43 41.55



2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

Milan International Hotel 3.32 2.75 4.5 4.27 5 3.4 4.4 3.8

Oakwood Premier 5.74 4.18 7.4 6.25 9.9 4.25 8.25 7.5

Oberoi Hotel 14 10.05 18.1 16.02 21.1 26 32 28

Palms Hotel 13.89 12.3 14.09 16.8 11 13 18 14.3

Panorama Tours 23 14.1 24 21.1 34 39 43 41.55

Paradise Hotel 0.55 0.34 1.9 1.75 2.19 0.78 1.35 1.15

Park Hotel 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6

Regent Hotel 10.1 9 12.1 11.67 13.9 14 16 15

Taj Hotel 10 9 12.15 11.6 12.7 6 8.9 7

Travel Port Holidays India Pvt. Ltd. 0.6 0.45 1.7 0.7 5 4 7.25 7.15

Tunga Hotel 1.55 1.34 1.9 1.75 2.19 0.78 1.25 1.15


158

Figure: 6.3.66- Production of the Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their Production affected. The food production is the major component of the Hospitality sector as they are involved in establishments like transportation i.e. air, rail and road, outside catering, colleges, universities, Hospitals, prisons clubs casinos, functions fast food outlets, hotels, convention centre and community services. These were affected due to increase in the prices of meat, fish, bakery and vegetables. Few customers stopped coming to these establishments due to unemployment and as a matter of cost cutting.

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Production of Hospitality Industries during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Production

Name of the HospitalityIndustries

159

Table: 6.3.59- Sales of the Hospitality Industries during Global Recession

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Sales of the Hospitality Industries in

Crores Ajanta Hotel 2.34 1.4 4.5 3.78 6.14 4.35 6.9 5.67

Ambassador Hotel 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12 Amsons Tours And Travels Pvt Ltd 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25 Bawa Continental Hotel 5 4.1 7 6.1 9 4 10 9.55

Benzy Palace 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Chateau Windsor Hotel 6.48 6.35 8.09 7.18 9.09 6.15 7.78 7

Columbus Hotel 10.1 9 12.1 11.67 13.9 14 16 15

Comfort Inn Heritage 4.74 3.18 6.15 5.25 7.9 3.25 6.35 5.1

Cottage Hotel 4 3.05 8.1 6.02 10 6 9 8

Dattakrupa Travels 5.89 4.3 7.09 6.8 8 5 8 6.3

Elite Air Travel & Tours 3.89 3.3 4.09 4.8 5 6 8 7.3

Emerald Hotel 8 7 11.15 10.6 12.7 6 8.9 7

Empire Royale Hotel 1.6 1.45 1.7 1.7 5 4 5.25 5.15

En-Route Tours & Holidays 11.9 11 13.1 12.67 15 9.1 13 11


Grant Hotel 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48

Greenland Holidays 12.16 7.12 20.9 18.22 21.18 18.78 21.6 19.89 Holiday Inn 7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59

Host-Inn International 10 9 12.15 11.6 12.7 6 8.9 7

Ibis Hotel 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Imperial Palace Hotel 2.25 1.15 6.25 4.21 13.15 7.44 12.24 11.12 InterContinental Marine Drive 2.08 1.05 5.09 4.1 7.09 5.15 6.78 6

ITC Grand Central 0.33 0.55 1.7 1.6 2.5 0.4 1.35 1.25

Kings International Hotel 3.89 2.3 4.09 6.8 7 5 8 7.3

Kohinoor Continental 14 10.05 18.1 16.02 21.1 26 32 28

Legend Hotel 0.6 0.45 1.7 0.7 5 6 6.25 6.15

Leela Kempinski Hotel 23 14.1 24 21.1 34 39 43 41.55 Lotus Suite Hotel 1.55 1.34 1.9 1.75 2.19 1.18 1.35 1.15

Magic Tours And Holidays Pvt Ltd 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6


10.1 9 12.1 11.67 13.9 14 16 15


Oakwood Premier 4 3.05 8.1 6.02 10 6 9 8

Oberoi Hotel 5.89 4.3 7.09 6.8 8 5 8 6.3

Palms Hotel 5 4.1 7 6.1 9 4 10 9.55

Panorama Tours 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Paradise Hotel 6.48 6.35 8.09 7.18 9.09 6.15 7.78 7

Park Hotel 10.1 9 12.1 11.67 13.9 14 16 15

Regent Hotel 2.34 1.4 4.5 3.78 6.14 4.35 6.9 5.67

Taj Hotel 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12 Travel Port Holidays India Pvt. Ltd. 27.26 12.17 38.17 32.15 40.16 32.23 36.1 35.25 Tunga Hotel 3.89 3.3 4.09 4.8 5 6 8 7.3


160

Figure: 6.3.67- Sales of the Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their sales affected.

Due to sliding economy that affected the Indian hospitality industry with sales dipping and many joint ventures were being put on hold. The reduction in the number of customers visiting the food joints or establishments and due to increase in the price of commodities there was reduction in few of food items on the plate.

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Sales of the Hospitality Industries during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Sales


161

Table: 6.3.60- Net Profit of Hospitality Industries during Global Recession


Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Net Profit of Hospitality Industries

in Crores Ajanta Hotel 10.65 9.86 13.22 15.17 23.18 15.09 21.19 17.18 Ambassador Hotel 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Amsons Tours And Travels Pvt Ltd 15.09 14.25 18.25 17 18.45 19 23 20.15 Bawa Continental Hotel 20.65 10.86 30.22 25.17 33.18 15.09 23.19 20.18 Benzy Palace 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Chateau Windsor Hotel 15.09 14.25 18.25 17 18.45 19 23 20.15 Columbus Hotel 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Comfort Inn Heritage 11.25 8.78 15.7 9.18 20.08 -14.78 26.1 24 Cottage Hotel 75.86 60.65 85.39 83.78 80.47 75.11 95 83.1 Dattakrupa Travels 6.97 5.7 15.57. 4.06 27.4 -5.66 8.1 7.08 Elite Air Travel & Tours 21.35 11.78 35.07 30.98 34.08 -24.78 36.1 34 Emerald Hotel 109 104 130 127 150 145 160 155 Empire Royale Hotel 10.5 9.6 12.2 11.17 13.18 14.09 16.19 15.18 En-Route Tours & Holidays 6.7 5.9 7.1 7.09. 8.25 8.1 9.5 9.05 Golden Manor Hotel 146.9 102 625 233 709.11 578 780 656 Grant Hotel 2.78 1.56 4.97 3.8 5.48 6.65 8.05 7.9 Greenland Holidays 8.56 7.4 8.89 8.78 9.67 7.09 7.09 7.3 Holiday Inn 13 11.25 18.25 16 19.45 19 23 20.15 Host-Inn International 19 10 30 27 50 45 60 55 Ibis Hotel 0.78 0.56 0.97 0.8 1.48 1.65 2.1 1.9 Imperial Palace Hotel 4.35 3.78 6.07 5.98 7.08 -4.78 12.1 10 InterContinental Marine Drive 10.65 10.86 20.22 15.17 13.18 15.09 13.19 20.18 ITC Grand Central 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Kings International Hotel 15.09 14.25 18.25 17 18.45 19 23 20.15 Kohinoor Continental 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Legend Hotel 8.25 7.78 11.7 9.18 18.08 -14.78 16.1 15 Leela Kempinski Hotel 5.09 4.25 8.25 7 8.45 9 13 10.15 Lotus Suite Hotel 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Magic Tours And Holidays Pvt Ltd 8.25 7.78 11.7 9.18 18.08 -11.78 16.1 15 Maharashtra Tourism Development Corporation

6.25 5.78 10.7 7.18 11.08 -10.78 15 12

Milan International Hotel 75.86 60.65 85.39 83.78 80.47 75.11 95 83.1 Oakwood Premier 6.97 5.7 15.57. 4.06 27.4 -5.66 8.1 7.08 Oberoi Hotel 21.35 11.78 35.07 30.98 34.08 -24.78 36.1 34 Palms Hotel 20.65 10.86 30.22 25.17 33.18 15.09 23.19 20.18 Panorama Tours 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Paradise Hotel 15.09 14.25 18.25 17 18.45 19 23 20.15 Park Hotel 0.42 -0.11 1.34 0.19 78 1.54 -0.35 -0.28 Regent Hotel 11.25 8.78 15.7 9.18 20.08 -14.78 26.1 24 Taj Hotel 10.65 9.86 13.22 15.17 23.18 15.09 21.19 17.18 Travel Port Holidays India Pvt. Ltd. 7.7 6.97 8.1 7.79. 8.25 8.3 9.25 9.15 Tunga Hotel 15.09 14.25 18.25 17 18.45 19 23 20.15

162

Figure: 6.3.68- Net Profit of the Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their net profit affected.

As per the data, the net profit earned by the Hospitality Industries vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.

-500

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Net Profit of the Hospitality Industries during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Net Profit

Name of the Hospitality industries

163

Table: 6.3.61- Taxes paid by Hospitality Industries during Global Recession

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Taxes paid by Hospitality

Industries in lakhs

Ajanta Hotel 6.4 4.5 8.7 7.9 9.9 7.7 5.5 6.6 Ambassador Hotel 7.7 6.46 9.5 8.6 10.09 6.67 10.4 8.09 Amsons Tours And Travels Pvt Ltd 8.3 5.76 13.5 9.5 15.09 5.67 10.5 7.09 Bawa Continental Hotel 5.33 6.03 2.57 1.45 4.08 6.04 11.34 10.05 Benzy Palace 7.7 6.16 9.5 8.6 10.19 6.79 12.4 8.19 Chateau Windsor Hotel 19.9 14.09 12.07 18.09 13.7 12.97 15.09 14.07 Columbus Hotel 124 117 156 135 147 126 114 112 Comfort Inn Heritage 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 Cottage Hotel 2.24 2.15 4.78 2.09 7.09 5.78 9.09 7.67 Dattakrupa Travels 8.24 7.15 11.78 9.09 12.09 13.78 19.09 17.67 Elite Air Travel & Tours 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 Emerald Hotel 1.15 1.25 3.09 2.24 3.78 5.09 3.18 2.78 Empire Royale Hotel 88.22 35.82 12.43 13.35 13.45 15 27.09 25.07 En-Route Tours & Holidays 7.4 4.12 11.03 8.1 67.29 31.8 67.09 55.55 Golden Manor Hotel 3.77 4.33 4.44 2.04 3.35 3.89 3.89 3.09 Grant Hotel 7.01 6.8 6.81 6.57 7.58 7 12.9 9 Greenland Holidays 1.16 0.14 3.98 2.19 5.08 5.14 8.9 7.7 Holiday Inn 6.6 5.4 8.09 7.7 10.19 11.89 13.98 12.19 Host-Inn International 7.78 6.56 9.1 8.09 10.89 11.78 14.89 13.19 Ibis Hotel 6.78 5.56 8.8 7.1 9.89 10.78 15.67 11.39 Imperial Palace Hotel 3.24 3.15 5.78 4.09 6.09 7.78 8.09 7.67 InterContinental Marine Drive 8.24 7.15 11.78 9.09 13.09 15.78 19.09 17.67 ITC Grand Central 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 Kings International Hotel 6.4 4.5 8.7 7.9 9.9 7.7 5.5 6.6 Kohinoor Continental 14 11 16 15 17 12 14 11 Legend Hotel 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 Leela Kempinski Hotel 29 27 56 35 47 26 34 22 Lotus Suite Hotel 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 Magic Tours And Holidays Pvt Ltd 14 11 16 13 17 16 14 11 Maharashtra Tourism Development Corporation

12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67

Milan International Hotel 1.15 1.25 3.09 2.24 3.78 5.09 3.18 2.78 Oakwood Premier 88.22 35.82 12.43 13.35 13.45 15 27.09 25.07 Oberoi Hotel 7.4 4.12 11.03 8.1 67.29 31.8 67.09 55.55 Palms Hotel 3.77 4.33 4.44 2.04 3.35 3.89 3.89 3.09 Panorama Tours 7.01 6.8 6.81 6.57 7.58 7 12.9 9 Paradise Hotel 1.16 0.14 3.98 2.19 5.08 5.14 8.9 7.7 Park Hotel 124 117 156 135 147 126 114 112 Regent Hotel 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67 Taj Hotel 2.24 2.15 4.78 2.09 7.09 5.78 9.09 7.67 Travel Port Holidays India Pvt. Ltd. 8.24 7.15 11.78 9.09 12.09 13.78 19.09 17.67 Tunga Hotel 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6 Source: Collected through Questionnaires and Interview method

164

Figure: 6.3.69- Taxes paid by Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their taxes affected.

As per the data, the taxes paid by the Hospitality Industries vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.

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Taxes paid by Hospitality Industries during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Taxes paid

Name of theHospitality industries

165

Table: 6.3.62- Changes in the number of employees of hospitality industries during Global recession

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Number of Employees of hospitality

industries in Hundreds Ajanta Hotel 225 200 310 250 350 280 330 300

Ambassador Hotel 420 650 450 150 540 300 675 578

Amsons Tours And Travels Pvt Ltd 540 420 780 670 560 430 387 350

Bawa Continental Hotel 540 350 156 180 340 150 278 230

Benzy Palace 540 420 780 670 560 430 387 350

Chateau Windsor Hotel 150 100 250 178 430 249 320 280

Columbus Hotel 100 50 250 170 300 245 305 285

Comfort Inn Heritage 180 170 330 260 350 260 315 310

Cottage Hotel 540 420 780 670 560 430 387 350

Dattakrupa Travels 540 350 156 180 340 150 278 230

Elite Air Travel & Tours 412 380 670 525 760 430 509 480

Emerald Hotel 525 400 750 650 770 340 400 350

Empire Royale Hotel 515 480 640 625 670 450 460 430

En-Route Tours & Holidays 510 700 150 250 350 200 190 170

Golden Manor Hotel 190 100 289 278 350 245 278 260

Grant Hotel 220 150 350 270 400 180 175 185

Greenland Holidays 190 100 289 278 350 245 278 260

Holiday Inn 270 250 350 270 400 180 175 185

Host-Inn International 480 500 250 678 450 145 378 250

Ibis Hotel 220 150 350 270 400 180 175 185

Imperial Palace Hotel 130 120 175 150 220 180 240 205

InterContinental Marine Drive 540 420 780 670 560 430 380 350

ITC Grand Central 225 200 310 250 350 280 330 300

Kings International Hotel 379 350 425 413 520 350 439 420

Kohinoor Continental 220 150 350 270 400 180 175 185

Legend Hotel 525 400 750 650 770 340 400 350

Leela Kempinski Hotel 515 480 640 625 670 450 460 430

Lotus Suite Hotel 480 500 250 678 450 149 280 250

Magic Tours And Holidays Pvt Ltd 220 150 350 270 400 345 175 185


780 670 430 560 350 280 325 310

Milan International Hotel 150 100 250 178 430 249 320 280

Oakwood Premier 100 50 250 170 300 245 305 285

Oberoi Hotel 180 170 330 260 350 260 315 310

Palms Hotel 540 420 780 670 560 430 387 350

Panorama Tours 540 350 156 180 340 150 278 230

Paradise Hotel 225 200 310 250 350 280 330 300

Park Hotel 420 650 450 150 540 300 675 578

Regent Hotel 540 420 780 670 560 430 387 350

Taj Hotel 540 350 156 180 340 150 278 230

Travel Port Holidays India Pvt. Ltd. 540 420 780 670 560 430 387 350

Tunga Hotel 540 350 156 180 340 150 278 230


166

Figure: 6.3.70- Changes in the number of employees of Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had affected in the changes in number of employees.

The change in number of employees in the Hospitality Industries during the recession was due to sudden reduction in creation of employment; new appointees to the organizations were sent back home with advance three months salary due to company policy of cutting costs and salary of many employees were reduced by twenty percent of their actual salary.

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2004 2005 2006 2007 2008 2009 2010 2011

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167

Table: 6.3.63- Total assets of Hospitality industries during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total assets of Hospitality

industries in Crores Ajanta Hotel 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25




Benzy Palace 12 9.08 20.12 15 25.14 27.1 32.15 30.12

Chateau Windsor Hotel 13.09 15.9 34 14.72 21 35.55 45.47 40.34

Columbus Hotel 43.15 38.23 50.12 45 46.15 30.12 50.15 48.25


Cottage Hotel 32.15 27.26 40.16 38.17 32.23 22.17 36.1 35.25

Dattakrupa Travels 40.21 32.25 43.15 42.25 37.44 20.15 42.24 41.12


Emerald Hotel 30.16 26.25 37.15 38.26 33.28 23.18 36.6 35.52

Empire Royale Hotel 134.08 112.68 56.98 48.04 124 14.72 23.98 21.1


Golden Manor Hotel 13.89 12.3 14.09 16.8 11 13 23 21.3

Grant Hotel 30.12 29.12 43.15 38.23 45 45.34 55.34 50.12

Greenland Holidays 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Holiday Inn 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Host-Inn International 13.09 15.9 34 14.72 21 35.55 45.47 40.34

Ibis Hotel 12.12 15.08 17.1 13.78 18.08 15 18.23 15.8



ITC Grand Central 14 10.05 18.1 16.02 21.1 26 32 28

Kings International Hotel 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59

Kohinoor Continental 56.9 45.86 57.1 57.67 58.1 41.9 48 45

Legend Hotel 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89

Leela Kempinski Hotel 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25




29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59

Milan International Hotel 43.15 38.23 50.12 45 46.15 30.12 50.15 48.25

Oakwood Premier 33.28 30.16 38.26 37.15 35.16 28.56 43.27 40.16

Oberoi Hotel 32.15 27.26 40.16 38.17 32.23 22.17 36.1 35.25

Palms Hotel 40.21 32.25 43.15 42.25 37.44 20.15 42.24 41.12

Panorama Tours 32.23 33.15 36.1 35.25 32.15 27.25 41.12 38.17

Paradise Hotel 30.16 26.25 37.15 38.26 33.28 23.18 36.6 35.52

Park Hotel 134.08 112.68 56.98 48.04 124 14.72 23.98 21.1

Regent Hotel 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25

Taj Hotel 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12

Travel Port Holidays India Pvt. Ltd. 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17

Tunga Hotel 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12


168

Figure: 6.3.71-Total assets of Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their assets affected as compared to the previous Year from 2004-2008.

There was reduction in number of investments made in assets as the Business activities and sales showed decline because of recession in two thousand four. In the Year 2010 and 2011the Hospitality Industries had to investment more on assets in order to earn more customers and to generate employment.

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169

Table: 6.3.64- Total liabilities of the Hospitality Industries during Global Recession

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total liabilities of Hospitality

Industries in Crores Ajanta Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1


Amsons Tours And Travels Pvt Ltd 15.9 13.09 14.72 34 21 35.55 40.34 45.47


Benzy Palace 33.5 34.25 30.16 31.09 32.15 28.14 32.15 42.15


Columbus Hotel 30.18 32 40.15 42.45 43.2 37.25 41.1 42.2


Cottage Hotel 29.12 30.12 38.23 43.15 45 45.34 50.12 55.34

Dattakrupa Travels 26.45 33.55 27.26 28 30.28 29.28 33.28 33.28


Emerald Hotel 134 167.78 123.85 156.9 170.09 34.9 78.89 80

Empire Royale Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1


Golden Manor Hotel 13.45 14.05 15.08 28.07 44.09 23.09 -12.9 10.15

Grant Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1


Holiday Inn 25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6


Ibis Hotel 11.5 16.09 78.09 56 65.09 76.09 34.89 45



ITC Grand Central 14.08 23.58 34.18 45.07 54.67 78.9 45.67 47

Kings International Hotel 30.12 38.23 43.15 45 50.12 46.15 48.25 50.15


Legend Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1



Magic Tours And Holidays Pvt Ltd 30.18 32 40.15 42.45 43.2 37.25 41.1 42.2


25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6


Oakwood Premier 30.18 32 40.15 42.45 43.2 37.25 41.1 42.2

Oberoi Hotel 25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6

Palms Hotel 29.12 30.12 38.23 43.15 45 45.34 50.12 55.34

Panorama Tours 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1

Paradise Hotel 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24

Park Hotel 15.9 13.09 14.72 34 21 35.55 40.34 45.47

Regent Hotel 32.5 33.26 38.23 38.45 39.44 32.15 38.48 40.44

Taj Hotel 33.5 34.25 30.16 31.09 32.15 28.14 32.15 42.15

Travel Port Holidays India Pvt. Ltd. 26.45 33.55 27.26 28 30.28 29.28 33.28 33.28

Tunga Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1


170

Figure: 6.3.73- Total liabilities of Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their liabilities affected. There was decline in liabilities as companies had reduced in borrowing funds from the banks and other financial institutions or from money lenders. Even banks were facing difficulties in getting funds from their customers.

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Total liabilities of Hospitality Industries during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Total liabilities


171

Table: 6.3.65- Investments of the Hospitality industries during Global recession (Here Investments include invest in New ventures like Mergers, strategic alliances, Acquisitions)

Year-wise-wise 2004 2005 2006 2007 2008 2009 2010 2011 Investments of the Hospitality

industries in crores Ajanta Hotel 13.28 5.77 15.16 18.26 18.26 17.15 22.16 18.6 Ambassador Hotel 12 8 17.25 12.5 22.45 20.15 21.1 23.2 Amsons Tours And Travels Pvt Ltd 8.4 9 16.23 12.52 22.52 10.25 20.25 18.15 Bawa Continental Hotel 10.12 12 15.4 13.15 13.15 18.23 20.12 15 Benzy Palace 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16 Chateau Windsor Hotel 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 Columbus Hotel 13.09 8.24 15.55 14 14 14.72 40.34 21 Comfort Inn Heritage 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 Cottage Hotel 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Dattakrupa Travels 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Elite Air Travel & Tours 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Emerald Hotel 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9 Empire Royale Hotel 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16 En-Route Tours & Holidays 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15 Golden Manor Hotel 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09 Grant Hotel 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16 Greenland Holidays 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15 Holiday Inn 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15 Host-Inn International 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5 Ibis Hotel 16.09 9.4 15.9 18 16 8.09 14.89 15.09 Imperial Palace Hotel 7.26 6.4 15.3 8.17 18.7 9.5 15.5 10.6 InterContinental Marine Drive 15.25 14 27.44 22.25 32.5 30.21 31.12 33.15 ITC Grand Central 13.58 12.24 18.9 15.07 25.07 14.18 15.67 14.67 Kings International Hotel 38.23 29 46.15 45 45 43.15 48.25 50.12 Kohinoor Continental 20.6 12.24 25.16 27.5 17.15 13.28 20.16 18.26 Legend Hotel 17.26 14 12.3 18.7 18.7 12.15 15.25 20.16 Leela Kempinski Hotel 12.25 8.24 17.4 15.5 22.25 20.21 21.12 23.15 Lotus Suite Hotel 33.15 30 32.15 35.25 35.25 32.23 38.17 36.1 Magic Tours And Holidays Pvt Ltd 32 27 37.25 42.45 42.45 40.15 41.1 43.2 Maharashtra Tourism Development Corporation

28.45 19.8 36.23 32.52 32.52 30.25 40.25 38.15

Milan International Hotel 13.28 5.77 15.16 18.26 18.26 17.15 22.16 18.6 Oakwood Premier 12 8 17.25 12.5 22.45 20.15 21.1 23.2 Oberoi Hotel 8.4 9 16.23 12.52 22.52 10.25 20.25 18.15 Palms Hotel 10.12 12 15.4 13.15 13.15 18.23 20.12 15 Panorama Tours 17.26 12.4 22.23 18.17 18.17 12.15 15.25 10.16 Paradise Hotel 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15 Park Hotel 13.09 8.24 15.55 14 14 14.72 40.34 21 Regent Hotel 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44 Taj Hotel 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5 Travel Port Holidays India Pvt. Ltd. 8.55 7.7 9.28 8 12 17.26 23.28 20.28 Tunga Hotel 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6 Source: Collected through Questionnaires and Interview method

172

Figure: 6.3.73- Investments of the Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their investments affected.

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2004 2005 2006 2007 2008 2009 2010 2011

Investments

Name of The Hospitality Industries

173

Table: 6.3.66- Performance of shares/ stocks of Hospitality Industries during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Performance of shares/ stocks of Hospitality Industries in Crores

Ajanta Hotel 9.9 8.24 17.7 12.5 22.5 20.6 25.2 23.5



Bawa Continental Hotel 13.09 15.9 34 14.72 21 35.55 45.47 40.34

Benzy Palace 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48


Columbus Hotel 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28


Cottage Hotel 16.78 14 16.9 13.85 17.09 34.9 80 78.89

Dattakrupa Travels 8.55 7.7 9.28 8 12 17.26 23.28 20.28


Emerald Hotel 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9




Grant Hotel 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16


Holiday Inn 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15


Ibis Hotel 13.09 15.9 34 14.72 21 35.55 45.47 40.34

Imperial Palace Hotel 12.12 15.08 17.1 13.78 18.08 15 18.23 15.8



Kings International Hotel 14 10.05 18.1 16.02 21.1 26 32 28


Legend Hotel 56.9 45.86 57.1 57.67 58.1 41.9 48 45





22.16 17.12 30.9 28.22 31.18 28.78 31.6 29.89

Milan International Hotel 8.55 7.7 9.28 8 12 17.26 23.28 20.28

Oakwood Premier 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6

Oberoi Hotel 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9

Palms Hotel 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16

Panorama Tours 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15

Paradise Hotel 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09

Park Hotel 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16

Regent Hotel 12.25 6.78 17.44 15.5 22.25 20.21 21.12 23.15

Taj Hotel 5.45 3.24 6.23 6.52 7.52 8.25 10.25 8.15


Tunga Hotel 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25


174

Figure: 6.3.74-Performance of shares/ stocks of Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their performance affected. The share or stock rates of these Hospitality industries have been drastically fallen causing agnosticism.

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Performance of shares/ stocks of Hospitality Industries during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Performance

of shares

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Name of the Hospitality

175

Table: 6.3.67- Tourist Arrivals in Hospitality Indu stries in India during Global Recession (here tourists are within India)

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Tourist Arrivals in Hospitality Industries in India in figures Ajanta Hotel 32.5 33.26 38.23 38.45 39.44 36.44 38.48 40.44 Ambassador Hotel 33.5 34.25 30.16 31.09 32.15 28.14 32.15 42.15 Amsons Tours And Travels Pvt Ltd 26.45 33.55 27.26 28 30.28 29.28 33.28 33.28 Bawa Continental Hotel 12 16.78 24.67 37.09 46.07 52.19 31.09 32.09 Benzy Palace 32.5 33.26 38.23 38.45 39.44 36.44 38.48 40.44 Chateau Windsor Hotel 33.5 34.25 30.16 31.09 32.15 28.14 32.15 42.15 Columbus Hotel 30.16 33.28 37.15 38.26 38.26 35.16 40.16 43.27 Comfort Inn Heritage 30.18 32 40.15 42.45 43.2 37.25 41.1 42.2 Cottage Hotel 25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6 Dattakrupa Travels 29.12 30.12 38.23 43.15 45 45.34 50.12 55.34 Elite Air Travel & Tours 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1 Emerald Hotel 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24 Empire Royale Hotel 15.9 13.09 14.72 34 21 35.55 40.34 45.47 En-Route Tours & Holidays 64.01 60.22 68.85 145 15.91 15.07 8.02 12.1 Golden Manor Hotel 30.18 32 40.15 42.45 43.2 37.25 41.1 42.2 Grant Hotel 25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6 Greenland Holidays 25.02 32.78 45.09 56.89 45.9 67.14 75.09 77 Holiday Inn 23.18 29.74 30.25 31.47 31.9 28.25 32.59 34.25 Host-Inn International 45.86 56.9 57.67 57.1 58.1 41.9 45 48 Ibis Hotel 19.12 22.18 27.22 30.9 31.18 28.78 29.89 31.6 Imperial Palace Hotel 29.74 30.25 31.47 31.9 32.59 28.25 30.25 32.52 InterContinental Marine Drive 45.09 67.09 78.09 87.21 97.68 92.12 113.89 125.18 ITC Grand Central 17.12 22.16 28.22 30.9 31.18 28.78 29.89 31.6 Kings International Hotel 23.18 29.74 30.25 31.47 31.9 28.25 32.59 34.25 Kohinoor Continental 32.5 33.26 38.23 38.45 39.44 36.44 38.48 40.44 Legend Hotel 33.5 34.25 30.16 31.09 32.15 28.14 32.15 42.15 Leela Kempinski Hotel 26.45 33.55 27.26 28 30.28 29.28 33.28 33.28 Lotus Suite Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1 Magic Tours And Holidays Pvt Ltd 134 167.78 123.85 156.9 170.09 34.9 78.89 80 Maharashtra Tourism Development Corporation

22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1

Milan International Hotel 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24 Oakwood Premier 13.45 14.05 15.08 28.07 44.09 23.09 -12.9 10.15 Oberoi Hotel 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1 Palms Hotel 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24 Panorama Tours 25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6 Paradise Hotel 10 12 17 20.8 25 28 29 30 Park Hotel 14.08 23.58 34.18 45.07 54.67 78.9 45.67 47 Regent Hotel 28.25 32.59 40.26 42.35 33.15 37.47 45.2 50.25 Taj Hotel 11.5 16.09 78.09 56 65.09 76.09 34.89 45 Travel Port Holidays India Pvt. Ltd. 22.17 27.26 32.15 38.17 40.16 32.23 35.25 36.1 Tunga Hotel 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24


176

Figure: 6.3.75- Tourist Arrivals in Hospitality Ind ustries in India during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had affected the guests getting into hotels as compared to the previous Year from 2004-2008.

The Passenger traffic was declined by four per cent and cargo by fourteen per cent for the Year-wise two thousand nine. The foreigners visiting India declined from the Year 2009.

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Tourist Arrivals in Hospitality Industries in India during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Tourist Arrivals


177

Table: 6.3.68- Tourist arrivals from other countries to India through Hospitality industries during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Tourist arrivals from other countries to India Through

Hospitality industries in Figures Ajanta Hotel 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Ambassador Hotel 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Amsons Tours And Travels Pvt Ltd 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Bawa Continental Hotel 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Benzy Palace 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Chateau Windsor Hotel 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 Columbus Hotel 15 13.67 21.19 18 24.09 25 35 32 Comfort Inn Heritage 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Cottage Hotel 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28 Dattakrupa Travels 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25 Elite Air Travel & Tours 67.09 45.09 87.21 78.09 97.68 92.12 125.18 113.89 Emerald Hotel 22.16 17.12 30.9 28.22 31.18 28.78 31.6 29.89 Empire Royale Hotel 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 En-Route Tours & Holidays 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Golden Manor Hotel 23 14.1 24 21.1 34 39 43 41.55 Grant Hotel 234 68.85 424 211 345 349 550 524.55 Greenland Holidays 30.25 29.74 31.9 31.47 32.59 28.25 32.52 30.25 Holiday Inn 67.09 45.09 87.21 78.09 97.68 92.12 125.18 113.89 Host-Inn International 22.16 17.12 30.9 28.22 31.18 28.78 31.6 29.89 Ibis Hotel 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Imperial Palace Hotel 56.9 45.86 57.1 57.67 58.1 41.9 48 45 InterContinental Marine Drive 23 14.1 24 21.1 34 39 43 41.55 ITC Grand Central 234 68.85 424 211 345 349 550 524.55 Kings International Hotel 22.03 23.26 33.801 26.06 45.57 37.31 78.25 44.74 Kohinoor Continental 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Legend Hotel 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Leela Kempinski Hotel 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89 Lotus Suite Hotel 24 11.02 33.12 27.02 35.19 37.1 45 39 Magic Tours And Holidays Pvt Ltd 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Maharashtra Tourism Development Corporation

28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25

Milan International Hotel 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 Oakwood Premier 33.5 30.15 42.4 42.15 32.75 35.56 52.24 48.27 Oberoi Hotel 22.03 23.26 33.801 26.06 45.57 37.31 78.25 44.74 Palms Hotel 29.74 23.18 31.47 30.25 31.9 28.25 34.25 32.59 Panorama Tours 56.9 45.86 57.1 57.67 58.1 41.9 48 45 Paradise Hotel 22.18 19.12 30.9 27.22 31.18 28.78 31.6 29.89 Park Hotel 24 11.02 33.12 27.02 35.19 37.1 45 39 Regent Hotel 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Taj Hotel 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Travel Port Holidays India Pvt. Ltd. 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 Tunga Hotel 33.5 30.15 42.4 42.15 32.75 35.56 52.24 48.27


178

Figure: 6.3.76- Tourist arrivals from other countries to India through Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel affected the arrival of foreigners as compared to the previous Year from 2004-2008.

Earlier to the recession there were many tourists to India who would visit religious places, few for holidaying in Goa or Mangalore. Even for business and for attending conferences foreign delegates used to visit India. Due to pay cut and lying of workforce during the recession, there was decline of foreign tourists in India.

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2004 2005 2006 2007 2008 2009 2010 2011

Tourist arrivals from other countries to India


179

Table: 6.3.69- Equity of Hospitality Industries during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Equity of Hospitality Industries in Crores

Ajanta Hotel 33.26 32.5 38.45 38.23 39.44 36.44 40.44 38.48 Ambassador Hotel 34.25 33.5 31.09 30.16 32.15 28.14 42.15 32.15 Amsons Tours And Travels 33.55 26.45 28 27.26 30.28 29.28 33.28 33.28 Bawa Continental Hotel 145 123 178 156 189 134 150.23 144 Benzy Palace 32 30.18 42.45 40.15 43.2 37.25 42.2 41.1 Chateau Windsor Hotel 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Columbus Hotel 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 Comfort Inn Heritage 33.5 30.15 42.4 42.15 32.75 35.56 52.24 48.27 Cottage Hotel 167.78 112.78 167.09 148.78 158.07 143.09 149 147.89 Dattakrupa Travels 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 Elite Air Travel & Tours 32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 Emerald Hotel 180.09 179 210.13 198.78 215.78 176.19 229.79 218.78 Empire Royale Hotel 28.54 25 32.52 30.25 38.25 36.23 43.6 40.25 En-Route Tours & 32.57 28.65 42.35 40.26 33.15 37.47 50.25 45.2 Golden Manor Hotel 33.5 30.35 42.4 42.15 32.75 35.56 52.24 48.27 Grant Hotel 138 133 147.15 146.15 150 165.1 183.1 175.1 Greenland Holidays 27.35 23.44 30.16 29.23 32 30.18 33.06 32.59 Holiday Inn 27.14 25.78 28.36 27.37 28.45 25.2 30.25 28.45 Host-Inn International 33.5 30.15 42.4 42.15 32.75 35.56 52.24 48.27 Ibis Hotel 167.78 112.78 167.09 148.78 158.07 143.09 149 147.89 Imperial Palace Hotel 28.45 25.2 32.52 30.25 38.15 36.23 43.6 40.25 InterContinental Marine Drive

32.59 28.25 42.35 40.26 33.15 37.47 50.25 45.2 ITC Grand Central 180.09 179 210.13 198.78 215.78 176.19 229.79 218.78 Kings International Hotel 28.54 25 32.52 30.25 38.25 36.23 43.6 40.25 Kohinoor Continental 32.57 28.65 42.35 40.26 33.15 37.47 50.25 45.2 Legend Hotel 33.5 30.35 42.4 42.15 32.75 35.56 52.24 48.27 Leela Kempinski Hotel 138 133 147.15 146.15 150 165.1 183.1 175.1 Lotus Suite Hotel 27.35 23.44 30.16 29.23 32 30.18 33.06 32.59 Magic Tours And Holidays 27.14 25.78 28.36 27.37 28.45 25.2 30.25 28.45 Maharashtra Tourism Development Corporation

30.15 29.34 31.9 31.47 32.59 28.25 32.52 30.25

Milan International Hotel 38.23 30.12 45 43.15 50.12 46.15 50.15 48.25 Oakwood Premier 30.16 28.56 37.15 33.28 38.26 35.16 43.27 40.16 Oberoi Hotel 27.26 22.17 38.17 32.15 40.16 32.23 36.1 35.25 Palms Hotel 32.25 20.15 42.25 40.21 43.15 37.44 42.24 41.12 Panorama Tours 33.15 27.25 35.25 32.23 36.1 32.15 41.12 38.17 Paradise Hotel 26.25 23.18 38.26 30.16 37.15 33.28 36.6 35.52 Park Hotel 112.68 45.86 48.04 134.08 56.98 124 152.15 152.67 Regent Hotel 55.21 53.15 63.45 58.25 77.44 51.22 55.15 52.4 Taj Hotel 123.89 110.78 147.78 132 157.14 98.15 125 123.89 Travel Port Holidays India 115 113 148 136 159 124 146 135 Tunga Hotel 173.14 167.8 197.14 187.78 200.35 110.78 132 123.89 Source: Collected through Questionnaires and Interview method

180

Figure: 6.3.77- Equity of Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their budget affected as compared to the previous Year from 2004-2008.

The operations of the Equity from 2004-2010 vary mainly due to global recession in 2009 which sent threat waves to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market.

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181

Table: 6.3.70- Fares of Hotels/restaurants in India during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Fares of Hotels/restaurants in India

in crores

Ajanta Hotel 3.24 3.15 5.78 4.09 6.09 7.78 8.09 7.67




Benzy Palace 14 11 16 15 17 12 14 11


Columbus Hotel 7.7 6.16 9.5 8.6 10.19 6.79 12.4 8.19


Cottage Hotel 6.6 5.4 8.09 7.7 10.19 11.89 13.98 12.19



Emerald Hotel 29 27 56 35 47 26 34 22




Grant Hotel 9 7 6 5 7 6 14 12


Holiday Inn 11.45 5.38 6.8 10.5 7.1 3.77 11.09 10.5


Ibis Hotel 19.9 14.09 12.07 18.09 13.7 12.97 15.09 14.07






Legend Hotel 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6





29 27 56 35 47 26 34 22


Oakwood Premier 14 11 16 13 17 16 14 11

Oberoi Hotel 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67

Palms Hotel 9 7 6 5 7 6 14 12

Panorama Tours 5.47 4.34 6.78 6.45 7.98 8.09 10.91 9.1

Paradise Hotel 11.45 5.38 6.8 10.5 7.1 3.77 11.09 10.5

Park Hotel 7.7 6.16 9.5 8.6 10.19 6.79 12.4 8.19

Regent Hotel 19.9 14.09 12.07 18.09 13.7 12.97 15.09 14.07

Taj Hotel 6.6 5.4 8.09 7.7 10.19 11.89 13.98 12.19


Tunga Hotel 6.78 5.56 8.8 7.1 9.89 10.78 15.67 11.39


182

Figure: 6.3.78-Fares of Hotels/Restaurants in India during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their fares affected. The Fares of the Restaurants show variations because the Hospitality sector faced challenges like increase in the price of commodities, fewer competent workforce, and competition in fixing fares among the hospitality industries.

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2004 2005 2006 2007 2008 2009 2010 2011

Fares of Hotels/Restaurants in India


183

Table: 6.3.71- Fares of Tourism in India during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Fares of tourism in India in crores

Ajanta Hotel 29 27 56 35 47 26 34 22


Amsons Tours And Travels Pvt Ltd 14 11 16 13 17 16 14 11


Benzy Palace 7.7 6.16 9.5 8.6 10.19 6.79 12.4 8.19


Columbus Hotel 6.6 5.4 8.09 7.7 10.19 11.89 13.98 12.19


Cottage Hotel 6.78 5.56 8.8 7.1 9.89 10.78 15.67 11.39



Emerald Hotel 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6




Grant Hotel 9 7 6 5 7 6 14 12


Holiday Inn 11.45 5.38 6.8 10.5 7.1 -3.77 11.09 10.5


Ibis Hotel 19.9 14.09 12.07 18.09 13.7 12.97 15.09 14.07






Legend Hotel 9.4 7.5 11.7 10.9 12.9 13.7 15.5 14.6





29 27 56 35 47 26 34 22


Oakwood Premier 14 11 16 13 17 16 14 11

Oberoi Hotel 12.24 10.15 13.78 13.09 15.09 12.78 18.9 13.67

Palms Hotel 9 7 6 5 7 6 14 12

Panorama Tours 5.47 4.34 6.78 6.45 7.98 8.09 10.91 9.1

Paradise Hotel 11.45 5.38 6.8 10.5 7.1 -3.77 11.09 10.5

Park Hotel 7.7 6.16 9.5 8.6 10.19 6.79 12.4 8.19

Regent Hotel 19.9 14.09 12.07 18.09 13.7 12.97 15.09 14.07

Taj Hotel 6.6 5.4 8.09 7.7 10.19 11.89 13.98 12.19


Tunga Hotel 6.78 5.56 8.8 7.1 9.89 10.78 15.67 11.39


184

Figure: 6.3.79- Fares of Tourism in India during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their fares affected as compared to the previous year from 2004-2008.

The Fares of the airlines and other tourism spots show variations because the tourism sector faced challenges like increase in the price of fuel, fewer competent workforce, and competition in fixing fares among the tourism industries.

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2004 2005 2006 2007 2008 2009 2010 2011

Fares of Tourism in Indi


185

Table: 6.3.72-Foreign remittances to India from Hospitality industries

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Foreign remittances to India in Crores

Ajanta Hotel 8.26 7.78 10.3 9.17 11.17 12.15 13.25 12.16




Benzy Palace 23 14.1 24 21.1 34 39 43 41.55


Columbus Hotel 2.48 1.35 5.09 4.18 7.09 5.15 6.78 6


Cottage Hotel 1.33 1.55 1.8 1.78 2.5 0.4 1.35 1.25

Dattakrupa Travels 10.12 9.12 15.15 13.23 25 15.34 25.34 20.12


Emerald Hotel 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15

Empire Royale Hotel 13.09 8.24 15.55 14 14 14.72 40.34 21



Grant Hotel 8.55 7.7 9.28 8 12 17.26 23.28 20.28


Holiday Inn 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9


Ibis Hotel 7.25 5.9 17.44 8.25 12.25 10.21 11.12 13.15

Imperial Palace Hotel 11.05 6.6 13.09 14.07 8.07 5.08 -12.9 14.09



Kings International Hotel 8 7 11.15 10.6 12.7 6 8.9 7

Kohinoor Continental 0.6 0.45 1.7 0.7 5 6 8.25 7.15

Legend Hotel 11.9 11 13.1 12.67 15 9.1 13 11

Leela Kempinski Hotel 14.9 12.9 16.1 15.67 17.1 11.9 15 13

Lotus Suite Hotel 0.78 0.67 0.38 0.68 1.9 35 0.5 0.48



7.74 1.18 9.47 8.25 10.9 7.25 10.25 8.59


Oakwood Premier 12.25 10.2 17.44 12.5 22.25 20.21 21.12 23.15

Oberoi Hotel 13.09 8.24 15.55 14 14 14.72 40.34 21

Palms Hotel 13.26 9.4 16.44 18.45 18.45 18.23 18.48 19.44

Panorama Tours 7.25 6.4 18.14 11.09 21.09 10.16 14.5 12.5

Paradise Hotel 8.55 7.7 9.28 8 12 17.26 23.28 20.28

Park Hotel 11.6 8.3 22.23 18.17 28.17 12.5 25.25 20.6

Regent Hotel 7.78 5.33 14.9 6.9 15.9 13.5 18.8 17.9

Taj Hotel 7.26 7.7 12.23 8.17 15.17 12.15 15.25 10.16


Tunga Hotel 11.05 6.6 13.09 14.07 8.07 5.08 12.9 14.09


186

Figure: 6.3.80-Foreign Remittances to India from Hospitality Industries during Global recession

Interpretation- From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their remittances affected. Earlier to the recession there were many tourists to India who would visit religious places, few for holidaying in Goa or Mangalore. Business and for attending conferences foreign delegates used to visit India. They used to stay in most luxurious hotels. Due to pay cut and lying of workforce during the recession, there was decline of foreign tourists in India which indirectly affects the foreign remittances of our country.

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Foreign Remittances to India from Hospitality Industries during recession

2004 2005 2006 2007 2008 2009 2010 2011

Foreign Remittances to India

Name of The Hospitality Industries

187

H0: 1. Performance of the selected Hospitality Industries has not affected by Global

Recession.

Parametric Test- T Test

Table: 6.3.73.1- Hypothesis Results of Parametric- T Test Statistics- Performance of

the selected Hospitality Industries has not affected by Global Recession.

T Test Statistics


Mean Difference


Calculated

Statistic T value at 95% confide

nce level

Tabulated T

Value at 95% confide

nce level

Budget of the Hospitality Industries 3.085 20.27 40 0.86 1.683

Procurement of Raw materials of the Hospitality Industries 1.625 10.10 40 1.035 1.683 Production of Hospitality Industries 1.28 8.25 40 1.001 1.683 Sales of Hospitality Industries 1.575 10.08 40 1.010 1.683 Net Profit of the Hospitality Industries 9.7 69.97 40 0.9525 1.683 Taxes paid of the Hospitality Industries 3.29 21.44 40 0.982 1.683 Changes in the number of employees of the Hospitality Industries 75.5 485.02 40

1.006

1.683

Total Assets of the Hospitality Industries 5.6 36.8 40 0.97 1.683 Total Liabilities of the Hospitality Industries 4.75 30.02 40 1.1515 1.683 Investments of the Hospitality Industries 2.46 16.41 40 0.9625 1.683 Performance of Hospitality Industries 4.325 16.01 40 1.6985 1.683 Equity of the Hospitality Industries 5.75 35.37 40 1.715 1.683 Tourist Arrivals from other countries to India 8.75 56.5 40 1.0005 1.683 Tourist Arrivals in Hospitality Industries 5.25 32.09 40 1.04 1.683 Fares of Hotels/restaurants in India 4 12.63 40 1.09 1.683 Fares of tourism in India 4 12.63 40 1.09 1.683 Foreign remittances to India from hotels/restaurants 4.75 36.13 40 1.010 1.683


Interpretation- The hypothesis results of Parametric T Test of the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows:

Since the Calculated Statistic T value at 5% level of significance less than the Tabulated T value 1.683 for all the parameters Budget Procurement of raw materials, Production, Net profit, Tax, Changes in the number of employees, Assets, liabilities, Investments, Performance of shares or stocks, Tourist Arrivals to India, Tourist Departures from India to other countries, equity, Fares of Hotels/restaurants in India, Fares of Tourism and foreign remittances. Hence we accept H0 and conclude that Performance of the selected Hospitality industries has not affected by Global Recession.

188

Non parametric Test –Chi Square test

Table: 6.3.73.1.1- Hypothesis Results of Non Parametric Chi Square test Statistics-

Performance of the selected Hospitality Industries has not affected by Global

Recession

Chi Square test Statistics Particulars Calculated

Statistic Chi square Value

at 95% confidence

level df

Tabulated Chi square Value at

95% confidence

level Budget of the Hospitality Industries 0.295 40 27.291 Procurement of Raw materials of the Hospitality Industries 0.695 40 27.291 Production of Hospitality Industries 0.658 40 27.291 Sales of Hospitality Industries 0.655 40 27.291 Net Profit of the Hospitality Industries 0.401 40 27.291 Taxes paid of the Hospitality Industries 0.443 40 27.291 Changes in the number of employees of the Hospitality Industries 0.000 40 27.291 Total Assets of the Hospitality Industries 0.405 40 27.291 Total Liabilities of the Hospitality Industries 0.019 40 27.291 Investments of the Hospitality Industries 0.443 40 27.291 Performance of Hospitality Industries 0.387 40 27.291 Equity of the Hospitality Industries 0.067 40 27.291 Tourist Arrivals from other countries to India 0.183 40 27.291 Tourist Arrivals in Hospitality Industries 0.008 40 27.291 Fares of Hotels/restaurants in India 0.366 40 27.291 Fares of tourism in India 0.366 40 27.291 Foreign remittances to India from hotels/restaurants 0.001 40 27.291


Interpretation- The hypothesis results of Non Parametric Chi square Test of the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows:

Since the calculated statistic Chi square value at 5% is less than the tabulated Chi square value 27.291 for all the parameters Budget Procurement of raw materials, Production, Net profit, Tax, Changes in the number of employees, Assets, liabilities, Investments, Performance of shares or stocks, Tourist Arrivals to India, Tourist Departures from India to other countries, equity, Fares of Hotels/restaurants in India, Fares of Tourism and foreign remittances. Hence we accept H0 and conclude that Performance of the selected Hospitality industries has not affected by Global Recession.

189

2. To understand the current overall Hospitality Industries’ situation and to study

that how can it be improved in future?

Table: 6.3.74- Growth of Hospitality Industries during Global recession

Name of the Hospitality Industries Growth of Hospitality Industries during Global recession Before Recession* After recession**

Ajanta Hotel 5 4 Ambassador Hotel 5 5 Amsons Tours And Travels Pvt Ltd 5 2 Bawa Continental Hotel 5 3 Benzy Palace 5 4 Chateau Windsor Hotel 4 2 Columbus Hotel 2 5 Comfort Inn Heritage 3 5 Cottage Hotel 5 4 Dattakrupa Travels 2 5 Elite Air Travel & Tours 5 5 Emerald Hotel 2 5 Empire Royale Hotel 2 4 En-Route Tours & Holidays 5 4 Golden Manor Hotel 4 5 Grant Hotel 4 5 Greenland Holidays 4 4 Holiday Inn 4 4 Host-Inn International 4 4 Ibis Hotel 4 4 Imperial Palace Hotel 5 3 InterContinental Marine Drive 5 4 ITC Grand Central 3 4 Kings International Hotel 5 4 Kohinoor Continental 5 4 Legend Hotel 5 4 Leela Kempinski Hotel 5 4 Lotus Suite Hotel 5 4 Magic Tours And Holidays Pvt Ltd 5 4 Maharashtra Tourism Development Corporation

3 4

Milan International Hotel 5 4 Oakwood Premier 4 5 Oberoi Hotel 4 2 Palms Hotel 2 3 Panorama Tours 3 4 Paradise Hotel 2 1 Park Hotel 5 5 Regent Hotel 5 5 Taj Hotel 5 4 Travel Port Holidays India Pvt. Ltd. 5 4 Tunga Hotel 4 5


*Parameters of Growth Before recession (*Parameters of Growth Before recession (*Parameters of Growth Before recession (*Parameters of Growth Before recession (1 stands for Significantly Decreasing, 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly Increasing).

**Parameters of Growth after recession**Parameters of Growth after recession**Parameters of Growth after recession**Parameters of Growth after recession(1stands for Significantly negative impact, 2 stands for Slightly negative impact, 3 stands for No impact, 4 stands for Slightly positive impact and 5 stands for Significantly positive impact)

190

Figure: 6.3.81- Growth of Hospitality Industries before Global recession

Figure: 6.3.82- Growth of Hospitality Industries after Global recession

Interpretation -The above data and graph depicts the growth of Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms

Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows: Before the recession, Most of these hospitality industries had attained break even in terms of growth. The rest of the hospitality industries showed no change in terms of growth, showed fluctuations in the growth showed significantly decreasing in the growth and significantly increasing in the growth. Most of them had significantly and slightly positive impact on their growth, few of them had significantly and slightly negative impact on their growth and the rest did not show any impact on their growth.

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Growth of Hospitality industries before Global recession

Significantly decreasingAttained break evenNo ChangeFluctuationsSignificantly increasing



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Growth of Hospitality industries after Global recession



No Impact


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191

Table: 6.3.75-Role of Branding on Hospitality Industries during Global recession

Name of the Hospitality Industries Role of Branding on Hospitality Industries during Global recession

Before Recession* After recession** Ajanta Hotel 1 1 Ambassador Hotel 1 1 Amsons Tours And Travels Pvt Ltd 1 1 Bawa Continental Hotel 1 1 Benzy Palace 2 1 Chateau Windsor Hotel 1 1 Columbus Hotel 2 1 Comfort Inn Heritage 1 1 Cottage Hotel 1 1 Dattakrupa Travels 2 1 Elite Air Travel & Tours 1 1 Emerald Hotel 1 1 Empire Royale Hotel 1 1 En-Route Tours & Holidays 1 1 Golden Manor Hotel 2 1 Grant Hotel 1 1 Greenland Holidays 1 1 Holiday Inn 2 1 Host-Inn International 1 2 Ibis Hotel 1 1 Imperial Palace Hotel 1 1 InterContinental Marine Drive 1 2 ITC Grand Central 2 1 Kings International Hotel 1 2 Kohinoor Continental 1 1 Legend Hotel 1 1 Leela Kempinski Hotel 1 1 Lotus Suite Hotel 1 2 Magic Tours And Holidays Pvt Ltd 2 1 Maharashtra Tourism Development Corporation

1 2



*Parameters of Role branding before and after recession*Parameters of Role branding before and after recession*Parameters of Role branding before and after recession*Parameters of Role branding before and after recession ((((1 stands for Yes and 2 stands for No).

192

Figure-6.3.83 Role of Branding on Hospitality Industries before Global recession

Figure-6.3.84 Role of Branding on Hospitality Industries after Global recession

Interpretation- The above data and graphs indicate that Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental

Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel agree strongly that branding plays important role in building a company.

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Role of Branding of Hospitality Industries before Global recession

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Yes No



193

Table: 6.3.76- Role of Media on Hospitality Industries during Global recession

Name of the Hospitality Industries Role of Media on Hospitality Industries during Global recession

Before Recession* After recession* Ajanta Hotel 1 2 Ambassador Hotel 1 1 Amsons Tours And Travels Pvt Ltd 1 2 Bawa Continental Hotel 2 1 Benzy Palace 1 1 Chateau Windsor Hotel 1 1 Columbus Hotel 2 1 Comfort Inn Heritage 1 1 Cottage Hotel 1 2 Dattakrupa Travels 2 1 Elite Air Travel & Tours 1 1 Emerald Hotel 1 1 Empire Royale Hotel 1 2 En-Route Tours & Holidays 1 1 Golden Manor Hotel 2 1 Grant Hotel 1 1 Greenland Holidays 1 1 Holiday Inn 1 1 Host-Inn International 1 1 Ibis Hotel 1 1 Imperial Palace Hotel 1 1 InterContinental Marine Drive 1 1 ITC Grand Central 1 2 Kings International Hotel 1 1 Kohinoor Continental 1 1 Legend Hotel 1 1 Leela Kempinski Hotel 1 1 Lotus Suite Hotel 1 1 Magic Tours And Holidays Pvt Ltd 1 1 Maharashtra Tourism Development Corporation

1 1 Milan International Hotel 2 1 Oakwood Premier 2 1 Oberoi Hotel 1 1 Palms Hotel 2 1 Panorama Tours 1 1 Paradise Hotel 1 1 Park Hotel 1 1 Regent Hotel 1 1 Taj Hotel 1 2 Travel Port Holidays India Pvt. Ltd. 1 1 Tunga Hotel 1 1


****Parameters of Role of Media before and after recessionParameters of Role of Media before and after recessionParameters of Role of Media before and after recessionParameters of Role of Media before and after recession ((((1 stands for Yes and 2 stands for No).

194

Figure: 6.3.85- Role of Media on Hospitality Industries before Global recession

Figure: 6.3.86- Role of Media on Hospitality Industries after Global recession

Interpretation- The above data and graphs indicate that Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental

Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel agree strongly that Media plays important role in building the brand image during recession.

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Yes No



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Yes No



195

Table: 6.3.77- Challenges faced by the Hospitality Industries during Global recession

Name of the Hospitality Industries Challenges faced by Hospitality Industries during Global recession

Lack of trained

Professional

Language and

cultural barriers

Rationalizing

Personnel costs

Intensifying Allian

ces

Budget reduction

s

Ajanta Hotel 1 2 3 4 5 Ambassador Hotel 1 2 0 4 5 Amsons Tours And Travels Pvt Ltd 1 2 3 4 0 Bawa Continental Hotel 1 2 3 4 5 Benzy Palace 1 0 3 4 5 Chateau Windsor Hotel 1 2 3 4 5 Columbus Hotel 1 0 3 4 5 Comfort Inn Heritage 1 2 3 4 5 Cottage Hotel 1 0 0 0 5 Dattakrupa Travels 1 2 3 4 5 Elite Air Travel & Tours 1 2 0 4 5 Emerald Hotel 1 2 3 4 5 Empire Royale Hotel 1 2 3 4 5 En-Route Tours & Holidays 1 2 3 4 5 Golden Manor Hotel 1 2 3 4 5 Grant Hotel 1 2 3 4 5 Greenland Holidays 1 2 3 4 5 Holiday Inn 1 2 3 4 5 Host-Inn International 1 2 3 4 5 Ibis Hotel 1 2 3 4 5 Imperial Palace Hotel 1 2 3 4 5 InterContinental Marine Drive 1 2 3 4 5 ITC Grand Central 1 2 3 4 5 Kings International Hotel 0 2 3 4 5 Kohinoor Continental 1 2 0 4 5 Legend Hotel 1 2 3 4 5 Leela Kempinski Hotel 1 2 3 4 5 Lotus Suite Hotel 1 2 3 4 5 Magic Tours And Holidays Pvt Ltd 1 2 3 4 5 Maharashtra Tourism Development Corporation

1 2 3 4 5

Milan International Hotel 1 2 3 4 5 Oakwood Premier 1 2 0 4 5 Oberoi Hotel 1 2 3 4 0 Palms Hotel 1 2 3 4 5 Panorama Tours 1 0 3 4 5 Paradise Hotel 1 2 3 4 5 Park Hotel 1 0 3 4 5 Regent Hotel 1 2 3 4 5 Taj Hotel 1 0 0 0 5 Travel Port Holidays India Pvt. Ltd. 1 2 3 4 5 Tunga Hotel 1 2 0 4 5


196

Figure: 6.3.87- Challenges faced by the Hospitality Industries during the recession

Interpretation- From the above data and graph we can analyze that in the Year-wise 2009, Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental

Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel. Most of these companies face challenges in terms of Lack of trained Professional, Language and cultural barriers, Rationalizing Personnel costs, Intensifying Alliances and Budget reductions.

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Challenges

Nameof the Hospitality Industries

197

H0: 2.There is no considerable difference in the development of Hospitality

industries during the recession period.

Parametric Test –T Test

Table: 6.3.78.1- Hypothesis Results of Parametric T Test Statistics- There is no

considerable difference in development of Hospitality industries during the

recession period.

T Test Statistics Particulars Table Value=41

Mean Difference


Calculated Statistic T value at

95% confidence

level


95% confidence

level

Growth of Hospitality Industries 0.0731 1.506 40 0.317 1.683 Role of branding 0.0731 0.64 40 0.722 1.683 Role of media 0.024 05696 40 0.266 1.683


Interpretation- The hypothesis results of Parametric T Test of the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows:

Since the calculated Statistic T value at 5% level of significance is less than the Tabulated T value 1.683 for all the parameters Growth, Role of Branding, Role of Media and Challenges faced by the Hospitality Industries. Hence we accept H0 and conclude that there is no considerable difference in the development of Hospitality industries during the recession period.

198

Non Parametric- Chi square Test

Table: 6.3.78.1.1- Hypothesis Results of Non Parametric- Chi square Test Statistics -

There is no considerable difference in the development of Hospitality industries

during the recession period

Chi Square Test Statistics Particulars

Calculated Statistic Chi square Value at 95% confidence level df


level Growth of Hospitality Industries 0.9766 40 27.291

Role of branding 0.9999 40 27.291 Role of media 0.9999 40 27.291


Interpretation- The hypothesis of Non parametric Chi Square Test of the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows:

Since the calculated statistic Chi sqaure value at 5% level of significance is less than the Tabulated Chi sqaure value 27.291 for all the parameters. Growth, Role of Branding and Role of Media on Hospitality Industries. Hence we accept H0 and conclude that there is no considerable difference in the development of Hospitality industries during the recession period.

199


Table: 6.3.79- Impact of budgetary policies of Hospitality industries during Global Recession

Name of the Hospitality Industries Impact of rates of budgetary policies of Hospitality industries during Global Recession

Before Recession* After Recession* Ajanta Hotel 1 1 Ambassador Hotel 1 1 Amsons Tours And Travels Pvt Ltd 1 1 Bawa Continental Hotel 1 1 Benzy Palace 1 1 Chateau Windsor Hotel 2 2 Columbus Hotel 1 2 Comfort Inn Heritage 2 2 Cottage Hotel 2 2 Dattakrupa Travels 1 1 Elite Air Travel & Tours 1 2 Emerald Hotel 1 2 Empire Royale Hotel 2 2 En-Route Tours & Holidays 2 2 Golden Manor Hotel 1 1 Grant Hotel 1 1 Greenland Holidays 1 1 Holiday Inn 1 1 Host-Inn International 1 1 Ibis Hotel 2 2 Imperial Palace Hotel 2 2 InterContinental Marine Drive 2 2 ITC Grand Central 1 1 Kings International Hotel 1 1 Kohinoor Continental 1 1 Legend Hotel 1 1 Leela Kempinski Hotel 1 1 Lotus Suite Hotel 1 1 Magic Tours And Holidays Pvt Ltd 1 1 Maharashtra Tourism Development Corporation

1 1



*Parameters Parameters Parameters Parameters Impact of budgetary policies on Hospitality Industries before and after recession Impact of budgetary policies on Hospitality Industries before and after recession Impact of budgetary policies on Hospitality Industries before and after recession Impact of budgetary policies on Hospitality Industries before and after recession (1 stands for Yes and 2 stands for No).

200

Figure: 6.3.88- Impact on Budgetary Policies of HospitalityIndustries before Global recession

Figure: 6.3.89- Impact on Budgetary Policies of HospitalityIndustries after Global recession

Interpretation- The above data and graph shows the impact of budget before and after recession on these Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows: The impact of budgetary policies after recession has provided relief to certain extent to the Hospitality Industries as the new policies were announced.

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Yes No

Impact on budgetary policies before recession


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Yes No

Impact on budgetary policies after recession


201

Table: 6.3.80- Impact of Global Recession on new projects of Hospitality industries

Name of the Hospitality Industries Yes No

Ajanta Hotel 1 0 Ambassador Hotel 1 0 Amsons Tours And Travels Pvt Ltd 1 0 Bawa Continental Hotel 1 0 Benzy Palace 1 0 Chateau Windsor Hotel 1 0 Columbus Hotel 1 0 Comfort Inn Heritage 0 2 Cottage Hotel 0 2 Dattakrupa Travels 1 0 Elite Air Travel & Tours 1 0 Emerald Hotel 1 0 Empire Royale Hotel 1 0 En-Route Tours & Holidays 1 0 Golden Manor Hotel 0 2 Grant Hotel 1 0 Greenland Holidays 1 0 Holiday Inn 1 0 Host-Inn International 1 0 Ibis Hotel 1 0 Imperial Palace Hotel 0 2 InterContinental Marine Drive 1 0 ITC Grand Central 0 2 Kings International Hotel 1 0 Kohinoor Continental 1 0 Legend Hotel 1 0 Leela Kempinski Hotel 1 0 Lotus Suite Hotel 1 0 Magic Tours And Holidays Pvt Ltd 0 2 Maharashtra Tourism Development Corporation 1 0 Milan International Hotel 1 0 Oakwood Premier 1 0 Oberoi Hotel 1 0 Palms Hotel 1 0 Panorama Tours 1 0 Paradise Hotel 0 2 Park Hotel 0 2 Regent Hotel 1 0 Taj Hotel 1 0 Travel Port Holidays India Pvt. Ltd. 0 2 Tunga Hotel 1 0


Parameters Parameters Parameters Parameters Impact of Global Recession on Impact of Global Recession on Impact of Global Recession on Impact of Global Recession on new projects of new projects of new projects of new projects of Hospitality industries (Hospitality industries (Hospitality industries (Hospitality industries (1 stands for Yes and 2 stands for No).

202

Figure: 6.3.90- Impact Recession of Global on new projects of Hospitality Industries

Interpretation- The above data and graph depicts the impact of Global recession on future projects of these Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their budget affected as compared to the previous Year from 2004-2008.As per data the new projects were postponed due to the slowdown of the economy.

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203

Table: 6.3.81 Impact of rates on food and beverages of Hospitality industries during Global recession

Name of the Hospitality Industries Impact of rates on food and beverages of Hospitality industries during Global recession Before Recession* After Recession**

Ajanta Hotel 2 1 Ambassador Hotel 2 1 Amsons Tours And Travels Pvt Ltd 3 1 Bawa Continental Hotel 2 1 Benzy Palace 2 1 Chateau Windsor Hotel 2 1 Columbus Hotel 2 1 Comfort Inn Heritage 2 3 Cottage Hotel 3 1 Dattakrupa Travels 3 5 Elite Air Travel & Tours 2 1 Emerald Hotel 2 3 Empire Royale Hotel 3 2 En-Route Tours & Holidays 1 2 Golden Manor Hotel 3 2 Grant Hotel 4 1 Greenland Holidays 4 2 Holiday Inn 4 2 Host-Inn International 4 2 Ibis Hotel 5 2 Imperial Palace Hotel 2 2 InterContinental Marine Drive 2 5 ITC Grand Central 2 5 Kings International Hotel 3 2 Kohinoor Continental 3 4 Legend Hotel 1 4 Leela Kempinski Hotel 1 1 Lotus Suite Hotel 1 1 Magic Tours And Holidays Pvt Ltd 1 1 Maharashtra Tourism Development Corporation

1 1



****Parameters of Impact of rates on food and beverages of Hospitality industries before recession (Parameters of Impact of rates on food and beverages of Hospitality industries before recession (Parameters of Impact of rates on food and beverages of Hospitality industries before recession (Parameters of Impact of rates on food and beverages of Hospitality industries before recession (1 stands

for 10%, 2 stands for 15%, 3 stands for 20%, 4 stands for 25% and 5 stands for 30%).

* ** ** ** **Parameters of Impact of *Parameters of Impact of *Parameters of Impact of *Parameters of Impact of rates on food and beverages of Hospitality industries after recession (rates on food and beverages of Hospitality industries after recession (rates on food and beverages of Hospitality industries after recession (rates on food and beverages of Hospitality industries after recession (1 stands for 5%, 2 stands for 10%, 3 stands for 12%, 4 stands for 15% and 5 stands for 17%).

204

Figure: 6.3.91- Impact of rates on food and beverages of Hospitality industries before Global recession

Figure: 6.3.92- Impact of Rates on Food and Beverages of Hospitality Industries after Global recession

Interpretation- The above data and graph give us an picture of the rates on food and beverages Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Pal ace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel.

As per data the rates on food and beverages before recession was exhoboraint as the suppliers were providing commissions to their retailers and also discounts to their regular customers. As per data the rates on food and beverages after recession was less as most of the suppliers had to shut down their units as they could not afford to give commissions to their retailers and also discounts to their regular customers.

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Impact of rates on food and beverages of Hospitality before

recession

10% 15% 20% 25% 30%

Impact of rates on food and beverages before recession


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1

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Impact of rates on food and beverages of Hospitality industries after Global

recession

5% 10% 12% 15% 17%

Impact of rates on food and beverages after recession


205

Table: 6.3.82-Impact of rates on fuel of Hospitality industries during Global recession

Name of the Hospitality Industries Impact of rates on fuel of Hospitality industries during Global recession

Before Recession* After Recession** Ajanta Hotel 2 2 Ambassador Hotel 2 2 Amsons Tours And Travels Pvt Ltd 2 2 Bawa Continental Hotel 3 3 Benzy Palace 3 2 Chateau Windsor Hotel 3 2 Columbus Hotel 2 2 Comfort Inn Heritage 2 2 Cottage Hotel 3 3 Dattakrupa Travels 3 3 Elite Air Travel & Tours 2 2 Emerald Hotel 2 2 Empire Royale Hotel 3 3 En-Route Tours & Holidays 1 1 Golden Manor Hotel 3 3 Grant Hotel 4 4 Greenland Holidays 4 4 Holiday Inn 4 4 Host-Inn International 4 4 Ibis Hotel 5 5 Imperial Palace Hotel 2 2 InterContinental Marine Drive 2 2 ITC Grand Central 2 2 Kings International Hotel 3 3 Kohinoor Continental 3 3 Legend Hotel 1 1 Leela Kempinski Hotel 1 1 Lotus Suite Hotel 1 1 Magic Tours And Holidays Pvt Ltd 1 1 Maharashtra Tourism Development Corporation 1 1 Milan International Hotel 1 2 Oakwood Premier 1 2 Oberoi Hotel 3 2 Palms Hotel 2 3 Panorama Tours 2 2 Paradise Hotel 3 2 Park Hotel 2 2 Regent Hotel 3 2 Taj Hotel 2 3 Travel Port Holidays India Pvt. Ltd. 2 3 Tunga Hotel 3 2


*Parameters of Impact of rates on fuel of Hospitality industries before recession (*Parameters of Impact of rates on fuel of Hospitality industries before recession (*Parameters of Impact of rates on fuel of Hospitality industries before recession (*Parameters of Impact of rates on fuel of Hospitality industries before recession (1 stands for 10%, 2 stands for 15%, 3 stands for 20%, 4 stands for 25% and 5 stands for 30%).

* *Parameters o* *Parameters o* *Parameters o* *Parameters of Impact of rates on fuel of Hospitality industries after recession (f Impact of rates on fuel of Hospitality industries after recession (f Impact of rates on fuel of Hospitality industries after recession (f Impact of rates on fuel of Hospitality industries after recession (1 stands for 10%, 2 stands for 15%, 3 stands for 20%, 4 stands for 25% and 5 stands for 30%).

206

Figure: 6.3.93- Impact of Rates on Fuel of Hospitality Industries before Global recession

Figure: 6.3.94- Impact of rates on Fuel of Hospitality Industries after Global recession

Interpretation From the above data and graph we can analyze that the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel had their rates on fuel affected as compared to the previous Year from 2004-2008.

0

1

2

3

4

5

6

Impact of Rates on Fuel of Hospitality Industries before Global

recession

10% 15% 20% 25% 30%

Impact of Rates on Fuel of Hospitality Industries before recession

Name of theHospitality Industries

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Impact of rates on fuel of Hospitality industries after Global

recession

10% 15% 20% 25% 30%

Impact of rates on fuel of Hospitality industries after recession


207

Table: 6.3.83- Risk of second recession of Hospitality industries

Name of the Hospitality Industries Yes No Ajanta Hotel 1 0 Ambassador Hotel 1 0 Amsons Tours And Travels Pvt Ltd 1 0 Bawa Continental Hotel 1 0 Benzy Palace 1 0 Chateau Windsor Hotel 1 0 Columbus Hotel 1 0 Comfort Inn Heritage 0 2 Cottage Hotel 1 0 Dattakrupa Travels 0 2 Elite Air Travel & Tours 1 0 Emerald Hotel 1 0 Empire Royale Hotel 1 0 En-Route Tours & Holidays 1 0 Golden Manor Hotel 1 0 Grant Hotel 1 0 Greenland Holidays 1 0 Holiday Inn 1 0 Host-Inn International 1 0 Ibis Hotel 1 0 Imperial Palace Hotel 1 0 InterContinental Marine Drive 1 0 ITC Grand Central 0 2 Kings International Hotel 1 0 Kohinoor Continental 1 0 Legend Hotel 1 0 Leela Kempinski Hotel 0 2 Lotus Suite Hotel 1 0 Magic Tours And Holidays Pvt Ltd 0 2 Maharashtra Tourism Development Corporation 0 2 Milan International Hotel 1 0 Oakwood Premier 0 2 Oberoi Hotel 1 0 Palms Hotel 1 0 Panorama Tours 1 0 Paradise Hotel 0 2 Park Hotel 1 0 Regent Hotel 0 2 Taj Hotel 1 0 Travel Port Holidays India Pvt. Ltd. 0 2 Tunga Hotel 1 0


*Parameters Parameters Parameters Parameters Risk of second recession onRisk of second recession onRisk of second recession onRisk of second recession on Hospitality industriesHospitality industriesHospitality industriesHospitality industries ((((1 stands for Yes and 2 stands for No)

208

Figure: 6.3.95- Risk of Second Recession of Hospitality Industries

Interpretation- The above data and graph give a picture of risk of having second recession on these Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel. There are chances of risk of having second recession which might wipe out many industries of Hospitality sector. Among these few disagree that recession will not affect the Hospitality industries.

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Risk of second recession of Hospitality Industries

Yes No



209


Recession on Indian Hospitality industries.

Parametric Test- T test

Table: 6.3.84.1-Hypothesis Results of Parametric T test Statistics- There are no

impact of Government Policies to minimize the effect of Global Recession on Indian

Hospitality industries.


Interpretation - The hypothesis of Parametric T test of the Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows:

Since the calculated statistic T value at 5% level of significance is less than the Tabulated T value 1.683 for all the parameters- Budget, New projects, Rates of Food and beverages before recession and after recession, Rates of Fuel before and after recession and risk of second recession .We accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian Hospitality industries.


Mean Differen

ce

Standard

Deviation

Difference df


value at 95%

confidence level

Tabulated T Value at 95%

confidence level

Impact of budget of Hospitality Industries 0.025 0.417 40 0.4167 1.683 Impact of future of hospitality Industries 0.268 1.30 40 1.3 1.683 Impact of rates on food and beverages 0.29 1.419 40 1.318 1.683 Impact of rates on fuel 0.024 0.27 40 0.571 .1.683 Risk of second recession of Hospitality industries 0.25 1.213 40 1.315 1.683

210

Non parametric Test- Chi-Square Test

Table: 6.3.84.1.1- Hypothesis Results of Non Parametric Test- Chi-Square Test

Statistics - There is no impact of Government Policies to minimize the effect of

Global Recession on Indian Hospitality industries

Chi-Square Test Statistics

Particulars



level Df



level Impact of budgetary policies of Hospitality Industries 0.3035 40 27.291 Impact of rates on food and beverages of Hospitality Industries

1.0000 40 27.291

Impact of rates on fuel of Hospitality Industries 1.0000 40 27.291 Source: Collected through Questionnaires and Interview method

Interpretation- The hypothesis results of Non parametric Chi Square Test of these Hospitality industries Ajanta Hotel, Ambassador Hotel, Amsons Tours And Travels Pvt Ltd, Bawa Continental Hotel, Benzy Palace, Chateau Windsor Hotel, Columbus Hotel, Comfort Inn Heritage, Cottage Hotel, Dattakrupa Travels, Elite Air Travel & Tours, Emerald Hotel, Empire Royale Hotel, En-Route Tours & Holidays, Golden Manor Hotel, Grant Hotel, Greenland Holidays, Holiday Inn, Host-Inn International, Ibis Hotel, Imperial Palace Hotel, InterContinental Marine Drive, ITC Grand Central, Kings International Hotel, Kohinoor Continental, Legend Hotel, Leela Kempinski Hotel, Lotus Suite Hotel, Magic Tours And Holidays Pvt Ltd, Maharashtra Tourism Development Corporation, Milan International Hotel, Oakwood Premier, Oberoi Hotel, Palms Hotel, Panorama Tours, Paradise Hotel, Park Hotel, Regent Hotel, Taj Hotel, Travel Port Holidays India Pvt. Ltd and Tunga Hotel are as follows:

Since the calculated statistic chi square value at 5% level of significance is less than the Tabulated Chi square value 27.291 for all the parameters- Budget, New projects, Rates of Food and beverages before recession and after recession, Rates of Fuel before and after recession and risk of second recession .We accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian Hospitality industries.

211

Table: 6.3.85.1-Overall Economy of the Hospitality Sector With Respect To the Performance of Hospitality Industries


Figure: 6.3.96.1--Overall Economy of the Hospitality Sector With Respect To the

Performance of Hospitality Industries

0

100

200

300

400

500

Overall Economy of the Hospitality Sector With Respect To the Hospitality Industries

2004 2005 2006 2007 2008 2009 2010 2011

Yearly representataion of Parameters

Parameters

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Parameters

Budget 9.3 15.13 13.83 15.4 19.74 16.63 18.11 22.9

Procurement 6.81 8.98 10.28 11.33 13.95 12.94 12.5 14.28

Production 5.7 7.92 9.2 10.05 12.3 11.65 12.34 13.71

Sales 5.07 7.1 8.55 9.54 11.83 9.79 10.67 11.9

Net Profit 14.96 18.75 25.81 35.95 46.94 26.08 37.22 42.21

Taxes paid 13.53 17.73 15.13 17.77 20.77 17.01 18.53 21.36

Number of Employees 323.41 381.36 379.65 419.21 453.41 282.36 304.78 337.17

Total Assets 29.54 35.39 35.05 38.66 41.04 30.64 38.11 41.23

Total Liabilities 27.12 32.49 36.86 41.17 43.07 37.44 39.03 42.19

Investments 10.45 13.59 16.46 18.63 20.52 17.01 20.22 21.64

Performance of shares/ stocks 14.68 17.68 19.74 23.48 24.31 22.19 26.35 27.72

Tourist Arrivals 28.51 34.01 38.35 44.18 43.13 37.84 39.06 42.53

Tourist Arrivals from other countries to India

29.17 42.8 44.98 57.79 55.45 52.42 65.98 71.86

Equity 54.96 63.3 68.39 70.73 71.19 63.61 72.47 76.32

Fares of Hotels/restaurants 8.54 10.73 11.24 12.59 13.29 11.16 12.27 15.16

Fares of Tourism 8.54 10.73 11.24 12.59 13.29 11.16 12.27 15.16

Foreign Remittances to India 7.1 9.81 11.61 14.31 16 13.7 15.37 16.35

212

Table: 6.3.85.1.1-Overall Economy of the Hospitality Sector With Respect To the Development through Initiatives taken by Indian Government

Parameters Growth before

recession

Growth afte

r recession



Role of

Media before recess

ion

Role of

Media after recess

ion

Challenges faced

Impact of Budg

et befor

e recession

Impact of Budg

et after recession

Impact of

Global recession on new

projects

Impact of rates on

food and beverages befor

e recession

Impact of

rates on

food and

beverages after

recession

Impact of

rates on fuel before

recession

Impact of

rates on fuel afte

r recession


Parameters


0

Attained breakeven

0.29

No change 0.23

Fluctuations 1.07


2.56


0.02


0.15

No impact 0.23


2.14


1.59

Yes 0.92 0.8 0.75 0.92 0.707 0.7 0.78 0.7

No 0.14 0.39 0.48 0.14 0.585 0.58 0.439 0.4

Lack of trained Professional

0.97

Language and cultural barriers

1.7

Rationalizing Personnel costs

2.48

Intensifying Alliances

3.8

Budget reductions

4.75

10% 0.146 0.829 0.2 0.14

15% 0.975 0.19 0.8 0.97

20% 0.73 0.8 0.73

25% 0.39 0.4 0.39

30% 0.219 0.13 0.12

5% 0.34

12% 0.36

17% 0.36


213

Figure: 6.3.96.1.1- Overall Economy of the Hospitality Sector With Respect To the Development through Initiatives taken by Indian Government

Interpretation- The reduction of budget of the Hospitality was due to current market conditions that impaired the financial forecast of most of the aviation industries. The legislative changes had a direct impact on budget projections. If the businesses or industries are aware of pending legislation then they can plan accordingly before preparing the budget. In order provide good service, it is necessary to have cooperation not only within the hospitality industry, but also from large number of supportive industries. The procurement of raw materials in terms of providing food, beverages and entertainment for the customers was affected due to the increase in the prices of daily commodities like meat fish and vegetables. The food production is the major

component of the Hospitality sector as they are involved in establishments like transportation i.e. air, rail and road, outside catering, colleges, universities, Hospitals, prisons clubs casinos, functions fast food outlets, hotels, convention centre and community services. These were affected due to increase in the prices of meat, fish, bakery and vegetables. Few customers stopped coming to these establishments due to unemployment and as a matter of cost cutting. Due to sliding economy that affected the Indian hospitality industry with sales dipping and many joint ventures were being put on hold. The reduction in the number of customers visiting the food joints or establishments and due to increase in the price of commodities there was reduction

0

1

2

3

4

5

6

7

Overall Economy of the Hospitality Sector With Respect To the Development through Initiatives taken by Indian Government

Growth before recession Growth after recessionRole of Branding before recession Role of Branding after recession Role of Media before recession Role of Media after recession Challenges faced Impact of Budget before recessionImpact of Budget after recession Impact of Global recession on new projects Impact of rates on food and beverages before recession Impact of rates on food and beverages after recession Impact of rates on fuel before recession Impact of rates on fuel after recessionRisk of second recession

Parameters

Parameters

214

in few of food items on the plate. As per the data, the net profit earned by the Hospitality Industries vary from 2004-2010 as the operations and sales

slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009.

The change in number of employees in the Hospitality Industries during the recession was due to sudden reduction in creation of employment; new appointees to the organizations were sent back home with advance three months salary due to company policy of cutting costs and salary of many employees were reduced by twenty percent of their actual salary. There was reduction in number of investments made in assets as the Business activities and sales showed decline because of recession in two thousand four. In the Year-wise 2010 and 2011the Hospitality Industries had to investment more on assets in order to earn more customers and to generate employment. There was decline in liabilities as companies had reduced in borrowing funds from the banks and other financial institutions or from money lenders. Even banks were facing difficulties in getting funds from their customers. Most of them had their investments affected. The share or stock rates of these Hospitality industries have been drastically fallen causing agnosticism The Passenger traffic was declined by four per cent and cargo by fourteen per cent for the Year-wise two thousand nine. The foreigners visiting India declined from the Year-wise 2009. Earlier to the recession there were many tourists to India who would visit religious places, few for holidaying in Goa or Mangalore. Even for business and for attending conferences foreign delegates used to visit India. Due to pay cut and lying of workforce during the recession, there was decline of foreign tourists in India and foreign remittances of our country. The operations of the Equity from 2004-2010 vary mainly due to global recession in 2009 which sent threat waves to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market. The Fares of the Restaurants show variations because the Hospitality sector faced challenges like increase in the price of commodities, fewer competent workforce, and

competition in fixing fares among the hospitality industries. The Fares of the airlines and other tourism spots show variations because the tourism sector faced challenges like increase in the price of fuel, fewer competent workforce, and competition in fixing fares among the tourism industries. Before the recession, Most of these hospitality industries had attained break even in terms of growth. The rest of the hospitality industries showed no change in terms of growth, showed fluctuations in the growth showed significantly decreasing in the growth and significantly increasing in the growth. Most of them had significantly and slightly positive impact on their growth, few of them had significantly and slightly negative impact on their growth and the rest did not show any impact on their growth. Most of the Hospitality industries agree that Branding plays important role in building a company as well Media plays important role in building the brand image during recession. Most of these companies face challenges in terms of Lack of trained Professional, Language and cultural barriers, Rationalizing Personnel costs, Intensifying Alliances and Budget reductions. The impact of budgetary policies after recession has provided relief to certain extent to the Hospitality Industries as the new policies were announced.As per data the future projects were postponed due to the slowdown of the economy. As per data the rates on food and beverages before recession was exhoboraint as the suppliers were providing commissions to their retailers and also discounts to their regular customers. As per data the rates on food and beverages after recession was less as most of the suppliers had to shut down their units as they could not afford to give commissions to their retailers and also discounts to their regular customers and rates of fuel were also affected. There are chances of risk of having second recession which might wipe out many industries of Hospitality sector.

215

6.4 REAL ESTATE COMPANIES

The Global economic uncertainties have affected India’s real estate market. The Major

Real Estate players are facing overall slowdown in demand in and around India. The

Property prices and rentals are shrinking which has led to the erosion in market

capitalization of many listed players of real estate. Many current projects of real estate

developers have been stalled due to lack of funds and investors either do not have funds

to invest or are reluctant to do so which has forced the companies to sell of the properties

at a lower value. This scenario has made the property dealers to face challenge of getting

buyers to their properties. The Rising costs, decline of capital, disinclining of buyers have

contributed to the crisis of reality sector .The increasing prices and interest rates have

dampened the spirits of real estate players. The continual rise in the interest rates has

declined the sale of residential properties. The Flow of funds has become a great concern

among the real estate developers as they are re-establishing under mellow debt and

foreign direct investment inflows have also slowed down. For example, the reality sector

at Mumbai has seventy percent decline in sales and the prices have risen up by twenty

percent. The need for offices is anticipated to remain unchanging but supply is

anticipated to preponderate in most of the premier cities of India. The rents on

commercial office spaces are anticipated to rise over all cities. The prices of commercial

properties have increased by ten to fifteen percent in the year 2011.

The difficulties that an Indian real estate is confronting is the price of liquidity in real

estate, the shortage of accessibility of land, postponements in acclamations, the decrease

in development of infrastructure and comparatively less placidity in terms of reality

sector. With the recession hit, the real estate development authority has decided to stop

the land auctions from next year 2013 onwards. It has been learnt that due to downfall in

the reality sector the Mumbai Metropolitan Region Development Authority (MMRDA)

has not released their lands in the Bandra-Kurla Complex (BKC).

For the purpose of data analysis, forty Real Estate companies are selected. There are

twenty one questions framed in the form of questionnaire and these questions are divided

into three parts as per the objectives and hypothesis.

216

1. To understand and be acquainted with the global recession that has affected the

Real Estate Companies of India

Table: 6.4.86- Budget of the Real Estate companies during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Budget of the Real Estate companies In

Crores Adhiraj Constructions Pvt. Ltd. 10.05 11 14.02 15.1 11.1 6 18 22 Ahuja Group 4.18 9.74 10.25 11.47 11.9 8.25 12.59 14.25 Ajmera Group 5.86 6.9 7.67 7.1 8.1 9.9 15 18 Akruti City Limited 9.12 10.18 7.22 10.9 11.18 8.78 9.89 11.6 DLF 0.75 0.32 0.27 1.5 0.55 0.45 0.35 0.4 Ecohomes Constructions Pvt. Ltd 15.9 13.09 14.72 15.2 21 15.55 20.34 25.47 EKTA World Pvt. Ltd. 32.5 33.26 38.53 38.45 39.44 36.44 40.44 38.48 Garodia Group 14.3 13.89 16.8 14.09 11 13 23 21.3 Godrej Properties Limited 24 23 21.1 24 34 39 43 41.55 Gyan Developers and Builders Limited 75 55 0.27 1.5 80 67 62 57 Hiranandani Developers Pvt. Ltd 15.9 16.9 17.67 17.1 18.1 11.9 12 12.5 Indiabulls Real Estate Limited 9 10.1 12.67 12.1 13.9 14 16 15 IRB Infrastructure Developers Ltd. 0.55 0.43 1.8 1.5 2.4 0.4 0.35 0.25 Kalpataru Properties Pvt. Ltd. 9.12 10.12 13.23 15.15 25 15.34 20.12 25.34 Kanakia Spaces 22.17 27.26 39.15 38.17 40.16 32.23 35.25 36.1 Kanungo Group 10.15 12.25 24.21 22.25 23.15 17.44 21.12 22.24 Karnani Builders & Developers 10.05 14 19.02 18.1 21.1 26 28 32 Kumar Urban Development Limited 0.45 0.6 0.7 1.7 35 10 0.15 0.25 K. Raheja Corp 11 11.9 12.67 13.1 9 17.1 11 13 Lalani Group 12.9 14.9 15.67 16.1 17.1 11.9 13 15 Landmark Property Development Company

0.67 0.078 0.68 0.38 1.9 3.5 0.48 0.5 Lodha Group 13.16 12.16 18.22 20.9 21.18 18.78 21.6 19.89 Lokhandwala Infrastructure 5.18 7.74 10.25 11.47 21.9 19.25 22.59 24.25 Mayfair Housing Pvt. Ltd. 5.86 6.9 7.67 7.1 8.1 9.9 18 10 Mighty Constructions Pvt. Ltd. 14.1 23 25.1 24 32 39 43 41.55 Mittal Builders 28 29.74 30.25 31.47 31.9 28.25 34.25 32.59 Nahar Group 25 22.18 37.22 30.9 21.18 28.7 31.6 29.89 Nirmal Lifestyle 17.12 22.16 28.22 30.9 31.18 28.78 31.6 29.89 Oberio Reality 65 50 80 67 0.57 0.28 0.34 0.2 Patel Realty India Ltd. 15.9 16.9 17.67 17.1 18.1 11.9 18 15 Peninsula Land Limited 0.6 0.55 1.8 1.75 1.89 0.25 0.5 0.2 Rohan Builders 0.65 0.5 0.55 0.27 1.5 0.45 0.43 0.35 Royal Palms India Private Limited 8.23 3.15 5 5.12 4.15 3.12 10.15 8.25 Sanghvi Gruha Nirman Pvt. Ltd. 2.25 4.21 2.25 4.15 2.15 6.44 13.12 12.24 Shree Naman Developers Ltd. 3.15 3.23 5.25 6.1 2.15 7.25 11.12 8.17 Sheth Developers Pvt. Ltd. 6.25 3.76 8.26 7.15 3.28 3.18 5.52 6.6 SUN CORP Builders & Developers 11.68 14.08 18.04 16.98 14 14.72 23.98 21.1 Sunil Mantri Realty Ltd. 9.53 9.15 10 5.12 6.15 3.12 15.15 8.25 Supreme Developers & Builders

4.06 3.28 7.15 8.26 5.16 8.56 4.16 13.27 TATA Housing Development Company Ltd.

8.15 7.36 8.17 9.16 9.23 4.17 5.25 6.1


217

Figure: 6.4.97- Budget of the Real Estate Companies during Global recession

Interpretation- From the above data and graph we can analyze the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Orbit, Patel Realty India Ltd, Royal Palms India Private Limited, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Supreme Developers & Builders and TATA Housing Development Company Ltd, budget had been affected compared to the previous years’ 2004-2008. The reduction of budget of Real estate companies was due to the economy and current market conditions that affected the financial forecast of the companies. The changes in the inflation rate and stock market conditions directly affected the organization's net worth and its ability to generate funds or loans. After 2009 there is slight improvement in the allocation of budget as many reforms were taken by Government of India and the companies of reality sector.

0

50

100

150

200

250

300

350

400

450

Adh

iraj C

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truc

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Budget of the Real Estate companies during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Budget

Name of the Real estate

218

Table: 6.4.87- Net Profit of the Real Estate Companies during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Net Profit of the Real Estate

Companies in Crores Adhiraj Constructions Pvt. Ltd. 11.78 21.35 30.98 32.07 34.08 -24.78 34 35

Ahuja Group 21.86 20.65 25.17 28.22 33.18 15.09 23.19 20.18

Ajmera Group 8.97 7.7 8.1 7.7 8.25 8.3 9.15 9.25

Akruti City Limited 15.25 15.09 18.25 17 18.45 19 20.15 23

DLF -0.11 0.42 1.34 0.19 1.78 1.54 -0.28 -0.35

Ecohomes Constructions Pvt. Ltd 12.78 11.25 15.17 14 20.08 -14.78 24 25

EKTA World Pvt. Ltd. 10.86 10.65 15.17 13.22 23.18 15.09 17.18 18.19

Garodia Group 7.97 7.7 7.79. 8.1 8.25 8.3 9.15 9.25

Godrej Properties Limited 16.25 15.09 17 18.25 18.45 19 20.15 23

Gyan Developers and Builders Limited 110 109 127 130 150 145 160 155

Hiranandani Developers Pvt. Ltd 10.6 10.5 11.17 12.2 13.18 14.09 15.18 16.19

Indiabulls Real Estate Limited 6.9 6.7 7.09. 7.1 8.25 8.1 9.05 9.2

IRB Infrastructure Developers Ltd. 102 116.9 233 235 409 478 656 660

Kalpataru Properties Pvt. Ltd. 3.56 2.78 3.8 4.97 5.48 6.65 7.9 8.05

Kanakia Spaces 7.4 8.56 8.78 8.89 9.67 7.09 7.3 7.09

Kanungo Group 13.25 13 16 18.25 19.45 19 20.15 23

Karnani Builders & Developers 19 10 27 26 50 45 55 60

Kumar Urban Development Limited 0.8 0.78 0.97 0.8 1.48 1.65 1.9 2.1

K. Raheja Corp 3.78 4.35 5.98 6.07 7.08 -4.78 10 12.1

Lalani Group 10.86 10.65 15.17 18 13.18 15.09 20.18 17.19

Landmark Property Development Company

7.97 7.7 7.79. 8.1 8.25 8.3 9.15 9.25

Lodha Group 15 14.09 17 18.25 18.45 19 23 201.5

Lokhandwala Infrastructure 0.11 0.42 0.19 1.34 1.68 1.54 0.35 0.29

Mayfair Housing Pvt. Ltd. 7.78 8.25 9.18 11.7 18.08 -14.78 15 16.1

Mighty Constructions Pvt. Ltd. 4.25 5.09 7 8.25 8.45 9 10.15 13

Mittal Builders 0.11 0.42 0.19 1.34 1.78 1.44 0.35 0.28

Nahar Group 5.78 6.25 10.7 7.18 11.08 -10.78 15 13

Nirmal Lifestyle 5.09 4.25 8.25 7 8.45 9 13 10.15

Oberio Reality 1.89 1.45 4.9 5 13.5 10.4 15.16 14.5

Patel Realty India Ltd. 91 82 108 103.39 307.11 403 363 370

Peninsula Land Limited 0.23 0.24 1.57 0.04 1.2 1.29 -0.13 0.17

Rohan Builders 0.14 0.35 0.5 0.46 0.57 0.25 0.6 0.4

Royal Palms India Private Limited 6.9 5.7 15.57 14 27.4 -5.66 7.08 8.1

Sanghvi Gruha Nirman Pvt. Ltd. 6.97 7.7 8.1 7.97 8.25 8.3 9.2 9.25

Shree Naman Developers Ltd. 14.25 15.09 18.25 17 18.45 19 23 20.15

Sheth Developers Pvt. Ltd. 0.42 0.11 0.19 1.34 1.78 1.54 -0.28 -0.35

SUN CORP Builders & Developers 9.78 8.25 11.7 9.8 18.08 -14.78 16.1 15

Sunil Mantri Realty Ltd. 1.23 0.24 1.57 0.02 1.2 1.29 0.14 0.12

Supreme Developers & Builders 0.44 0.35 0.5 0.46 0.57 0.25 0.4 0.14

TATA Housing Development Company Ltd.

35.25 35.09 58.25 57 68.45 79 103 90.15


219

Figure: 6.4.98- Net Profit of the Real Estate Companies during Global recession

Interpretation- As per the above data and graphs we can the study that the net profit of the below mentioned real estate companies Ahuja Group, Ajmera Group, Akruti City Limited, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, Lalani Group, Landmark Property Development Company, Lodha Group, Mighty Constructions Pvt. Ltd, Mittal Builders, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd were affected badly in 2009, compared to the previous years’ 2004-2008.

If we look at the figures of the net profit earned by the real estate companies we find that they vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009. The Government of India has proposed few reforms to overcome recession.

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Net profit

Name of the Real EstateCompanies

220

Table: 6.4.88- Taxes paid by the Real Estate Companies during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Taxes paid by Real Estate Companies in lakhs

Adhiraj Constructions Pvt. Ltd. 4.12 7.4 8.1 11.03 67.29 66.2 55.55 67.09

Ahuja Group 4.33 3.77 2.04 4.44 3.35 3.89 3.09 3.89

Ajmera Group 7.01 6.8 6.57 6.81 7.58 7 9 12.9

Akruti City Limited 0.14 1.16 2.19 3.98 5.08 5.14 7.7 8.9

DLF 124 117 156 135 147 143 112 114

Ecohomes Constructions Pvt. Ltd 12.24 10.15 13.78 13.09 15.09 14.78 13.67 18.9


Garodia Group 15 8.24 11.78 9.09 12.09 13.78 17.67 19.09

Godrej Properties Limited 9.4 7.5 11.7 10.9 12.9 13.7 14.6 15.5

Gyan Developers and Builders Limited 4.5 6.4 7.9 8.7 9.9 7.7 6.6 5.5


Indiabulls Real Estate Limited 8.3 5.76 9.5 13.5 15.09 5.67 10.05 7.09

IRB Infrastructure Developers Ltd. 6.03 5.33 1.45 2.57 4.08 6.04 10.05 11.34


Kanakia Spaces 14.09 19.9 18.09 12.07 12.97 13.7 14.07 15.09

Kanungo Group 5.4 6.6 7.7 8.09 10.19 11.89 12.19 13.98

Karnani Builders & Developers 6.56 7.78 8.09 9.1 10.89 11.78 13.19 14.89

Kumar Urban Development Limited 6.18 6.78 7.1 8.8 9.89 10.78 11.39 15.67

K. Raheja Corp 3.25 3.24 4.09 5.78 6.09 7.78 8.09 7.78

Lalani Group 7.15 8.24 9.09 11.78 13.09 15.78 19.09 18


7.5 9.4 11.7 10.8 12.9 13.7 14.6 15.5

Lodha Group 4.5 5.4 8.7 7.8 9.9 7.7 6.6 5.5

Lokhandwala Infrastructure 14 13 15 16 17 16 14 11

Mayfair Housing Pvt. Ltd. 12.24 10.09 13.09 13.78 15.09 12.78 13.67 18.9

Mighty Constructions Pvt. Ltd. 30 29 35 38 47 40 34 22

Mittal Builders 12.04 10.04 13.78 13.09 12.78 15.09 13.67 18.9

Nahar Group 12.24 10.15 13.09 13.78 15.09 12.78 18.9 13.67

Nirmal Lifestyle 9 7 5 6 7 6 14 12

Oberio Reality 5.47 4.34 6.45 6.78 7.98 8.09 10.91 9.1

Patel Realty India Ltd. 12.45 6.36 10.3 7.8 7.9 -5.6 12.5 12.09

Peninsula Land Limited 7.29 5.82 15.07 12.7 8.02 11.35 9.1 7.29

Rohan Builders 13.56 12.78 13.09 14.1 11.78 11.89 15.89 12.19

Royal Palms India Private Limited 9.47 8.34 10.45 11.78 12.98 13.09 14.1 15.91


Shree Naman Developers Ltd. 13.56 12.78 13.09 14.1 15.89 16.78 18.89 17.19

Sheth Developers Pvt. Ltd. 6.78 5.56 7.1 8.8 9.89 10.78 15.67 11.39

SUN CORP Builders & Developers 11.78 11.56 12.09 13.1 11.78 14.89 15.89 12.19


Supreme Developers & Builders 13.2 12.98 17.89 15.09 18.29 19.2 21.89 20

TATA Housing Development Company Ltd.

15.25 14.1 16.35 17.56 18.78 19.87 21.78 20.98


221

Figure: 6.4.99- Taxes paid by the Real Estate Companies during Global recession

Interpretation- From the above data and graph we can examine that the taxes of the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd. are affected compared to the previous years’ 2004-2008.

As per the data, the taxes paid by the real estate vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market during 2009. The numerous policies or reforms are undertaken by many developers to increase their sales so that their profit margin increases.

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Taxes paid

Name of the Real estateCompanies

222

Table: 6.4.89- Changes in the number of employees of Real Estate Companies during Global recession.

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Changes in the number of Employees of Real Estate Companies in Hundreds

Adhiraj Constructions Pvt. Ltd. 170 180 260 330 350 260 310 315

Ahuja Group 540 420 700 680 560 550 350 387

Ajmera Group 470 520 180 156 340 320 250 278

Akruti City Limited 200 225 250 310 350 280 300 330

DLF 650 580 450 350 540 550 578 675

Ecohomes Constructions Pvt. Ltd 420 540 790 680 560 530 350 387

EKTA World Pvt. Ltd. 350 540 180 156 340 390 240 278

Garodia Group 540 430 670 780 560 500 390 387

Godrej Properties Limited 500 350 180 156 340 339 230 278

Gyan Developers and Builders Limited 415 412 600 670 760 700 480 509

Hiranandani Developers Pvt. Ltd 525 420 750 650 770 600 350 400

Indiabulls Real Estate Limited 480 515 625 640 670 580 430 460

IRB Infrastructure Developers Ltd. 700 510 150 250 350 200 170 190

Kalpataru Properties Pvt. Ltd. 100 190 278 289 350 345 260 278

Kanakia Spaces 220 200 270 350 400 380 185 175

Kanungo Group 100 190 278 289 245 350 260 278

Karnani Builders & Developers 250 270 350 280 400 480 185 175

Kumar Urban Development Limited 500 480 678 250 350 275 280 270

K. Raheja Corp 240 220 270 350 400 530 185 175

Lalani Group 130 120 150 175 180 220 205 240

Landmark Property Development Company 540 500 670 780 460 430 350 380

Lodha Group 370 350 413 425 520 540 420 439

Lokhandwala Infrastructure 200 220 270 350 400 480 185 175

Mayfair Housing Pvt. Ltd. 500 525 650 750 770 780 415 400

Mighty Constructions Pvt. Ltd. 515 470 625 640 670 650 430 460

Mittal Builders 500 480 678 250 450 449 290 280

Nahar Group 780 670 560 430 350 320 340 325

Nirmal Lifestyle 540 500 780 670 460 430 390 387

Oberio Reality 350 540 180 156 340 350 280 278

Patel Realty India Ltd. 200 250 320 370 415 400 430 425

Peninsula Land Limited 671 650 220 260 470 460 490 479

Rohan Builders 400 250 320 240 378 379 270 298

Royal Palms India Private Limited 267 230 298 222 217 209 228 210

Sanghvi Gruha Nirman Pvt. Ltd. 250 230 290 320 327 313 339 320

Shree Naman Developers Ltd. 250 260 279 287 298 303 310 313

Sheth Developers Pvt. Ltd. 318 305 320 330 240 250 285 275

SUN CORP Builders & Developers 320 322 379 340 322 332 440 457

Sunil Mantri Realty Ltd. 259 271 415 330 340 423 420 415

Supreme Developers & Builders 350 340 410 420 382 454 320 350

TATA Housing Development Company Ltd. 150 120 180 200 250 278 234 220


223

Figure: 6.4.100- Changes in the number of employees of Real Estate industries

during Global recession.

Interpretation- Here the above data and graph depicts that the most of real estate companies like Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd had undergone changes in recruiting and retrenchment of employees during the mid 2008-2009 compared to previous years. The change in number of employees in the real estate sector during the recession was due to sudden reduction in creation of employment; new appointees those were recruited were sent back home with advance three months salary due to company policy of cutting costs or were not given joining date and salary of many employees were reduced by twenty percent of their actual salary.

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2004 2005 2006 2007 2008 2009 2010 2011

Changes in the number of Employees

Nameof the Real Estate Companies

224

Table: 6.4.90- Total assets of the Real estate companies during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011 Total assets of the Real estate companies in

Crores Adhiraj Constructions Pvt. Ltd. 27.26 32.15 38.17 40.16 32.23 22.17 36.1 35

Ahuja Group 32.25 40.21 43.15 42.25 37.44 20.15 41.12 42.24

Ajmera Group 33.15 32.23 35.25 36.1 32.15 27.25 38.17 41.12


DLF 112.68 134.08 48.04 56.98 124 14.72 21.1 23.98



Garodia Group 27.25 33.15 32.23 35.25 36.1 32.15 38.17 41.12


Gyan Developers and Builders Limited 9.08 12 15 20.12 25.14 27.1 30.12 32.15

Hiranandani Developers Pvt. Ltd 15.9 13.09 35 34 21 35.55 45.47 40.34


IRB Infrastructure Developers Ltd. 12.3 13.89 16.8 14.09 11 13 23 21.3

Kalpataru Properties Pvt. Ltd. 29.12 30.12 38.23 43.15 45 45.34 55.34 50.12

Kanakia Spaces 22.17 27.26 38.17 32.15 40.16 32.23 35.25 36.1

Kanungo Group 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24

Karnani Builders & Developers 15.9 13.09 34.72 34 21 35.55 40.34 45.47

Kumar Urban Development Limited 15.08 12.12 17.78 17.1 18.08 15 15.8 18.23

K. Raheja Corp 23.26 22.03 36.06 38.801 45.57 37.31 44 42

Lalani Group 23.18 29.74 30.25 31.47 31.9 28.25 34.25 32.59

Landmark Property Development Company 10.05 14 16.02 18.1 21.1 26 35 32

Lodha Group 23.18 29.74 31.47 30.25 31.9 28.25 32.59 34.25

Lokhandwala Infrastructure 45.86 56.9 57.67 57.1 58.1 41.9 48 45


Mighty Constructions Pvt. Ltd. 30.74 30.25 31.9 31.47 32.59 28.25 32.52 30.25

Mittal Builders 65 63 87.5 87.21 97.68 92.12 126 125.18

Nahar Group 25.34 23.45 30.25 31.47 31.9 28.25 32.59 34.25

Nirmal Lifestyle 56.9 55 57.67 57.1 58.1 41.9 45 48

Oberio Reality 24 23 24.1 21.1 34 39 42 43

Patel Realty India Ltd. 23.26 22.03 33.801 26.06 45.57 37.31 47 43

Peninsula Land Limited 33 29.74 31.47 30.25 31.9 28.25 32.59 34.25

Rohan Builders 25 24 33.12 27.02 35.19 37.1 43 39

Royal Palms India Private Limited 34.5 33.7 44 42.45 43.2 37.25 41.1 42.2


Shree Naman Developers Ltd. 32 31 42.45 40.15 43.2 37.25 42.2 41.1

Sheth Developers Pvt. Ltd. 27.9 26.45 35 32 38.15 36.23 43.6 40.25

SUN CORP Builders & Developers 29 23 33 31.47 31.9 28.25 34.25 32.59

Sunil Mantri Realty Ltd. 32 30 43.15 42.45 43.2 37.25 42.2 41.1

Supreme Developers & Builders 28.45 25 32.52 30.5 38.15 36.23 40.25 43.6

TATA Housing Development Company Ltd. 33 32.59 44 43 33.15 37.47 45.2 50.25


225

Figure: 6.4.101- Total assets of the Real estate companies during Global recession

Interpretation- The above data and graph shows that the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd, assets were affected compared to 2004-2008. The decline in investments began in the year 2007 as the investments of assets began to stagnate as the operations and sales started to slow down due to the financial crisis in the world. In the year 2010 and 2011the reality sector had to investment more on assets in order to earn more customers and to generate employment to most of the retrenched employees.

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Total Assets of the Real estate Companies during Global recession

2004 2005 2006 2007 2008 2009 2010 2011

Total Assets

Name of the Real estate Companies

226

Table: 6.4.91- Total liabilities of the Real estate companies during Global Recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Total liabilities of the Real estate companies in Crores


Ahuja Group 29.12 30.12 43.15 38.23 45 45.34 50.12 55.34

Ajmera Group 27.26 22.17 38.17 32.15 40.16 32.23 35.25 36.1


DLF 15.9 13.09 14.72 16 21 35.55 40.34 45.47



Garodia Group 26.45 33.55 27.26 28 30.28 29.28 34 33.28


Gyan Developers and Builders Limited 168 167.78 156.9 123.85 170.09 164.09 80 78.89



IRB Infrastructure Developers Ltd. 13.45 14.05 15.08 18.07 44.09 33.09 12.9 10.15


Kanakia Spaces 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24

Kanungo Group 28.45 25.2 30.25 32.52 38.15 36.23 43.6 40.25

Karnani Builders & Developers 32.59 31 40.26 42.35 33.15 37.47 50.25 45.2

Kumar Urban Development Limited 16.09 11.5 78.09 56 65.09 76.09 45 34.89

K. Raheja Corp 22.17 27.26 32.15 38.17 40.16 32.23 36.1 35.25

Lalani Group 32.25 20.15 40.21 42.25 43.15 37.44 42.24 41.12

Landmark Property Development Company 23.58 14.08 34.18 45.07 54.67 78.9 47 45.67

Lodha Group 38.23 30.12 43.15 45 50.12 46.15 48.25 50.15



Mighty Constructions Pvt. Ltd. 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24

Mittal Builders 33.15 27.25 32.23 35.25 36.1 32.15 41.12 38.17

Nahar Group 25.2 28.45 30.25 32.52 38.15 36.23 43.6 40.25

Nirmal Lifestyle 32.59 28.25 42.35 40.26 33.15 37.47 50 45

Oberio Reality 23 28.07 43.08 47.01 56.78 87.78 45 48

Patel Realty India Ltd. 20.15 32.25 40.21 42.25 43.15 37.44 41.12 42.24

Peninsula Land Limited 646.01 601.22 688.85 645 559 557 482 450

Rohan Builders 25.02 32.78 45.09 56.89 45.9 67.14 75.09 77

Royal Palms India Private Limited 23.18 29.74 31.47 30.25 31.9 28.25 34.25 32.59



Sheth Developers Pvt. Ltd. 17.12 22.16 30.9 28.22 31.18 28.78 29.89 31.6

SUN CORP Builders & Developers 23.18 29.74 31.47 30.25 31.9 28.25 32.59 34.25


Supreme Developers & Builders 33.5 34.25 31.09 30.16 32.15 28.14 32.15 42.15

TATA Housing Development Company Ltd. 26.45 33.55 28 27.26 30.28 29.28 33.28 32


227

Figure: 6.4.102- Total liabilities of the Real estate companies during Global recession

Interpretation- The above data and graph gives a picture that most of the real estate companies like Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders, TATA Housing Development Company Ltd had decrease in their liabilities.


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Total Liabilities of the Real Estate Companies during recession

2004 2005 2006 2007 2008 2009 2010 2011

Total Liabilities

Name of the Real Estate Companies

228

Table: 6.4.92- Equity of the Real Estate Companies during Global recession

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Equity of the Real Estate Companies in Crores


Ahuja Group 20.15 32.25 42.25 40.21 43.15 37.44 41.12 42.24

Ajmera Group 27.25 33.15 32.23 35.25 36.1 32.15 38.17 41.12


DLF 115.86 112.68

134.08

138.04

155 150 152.67

152.15 Ecohomes Constructions Pvt. Ltd 55.21 53.15 58.25 63.45 77.44 51.22 55.15 52.4

EKTA World Pvt. Ltd. 10.78 13.78 47.78 32 57.14 48.15 75 70

Garodia Group 13 15 16 18 19 14 50 46

Godrej Properties Limited 167.8 173.14

187.78

197.14

180 200 134 132

Gyan Developers and Builders Limited 33.26 32.5 38.45 38.23 39.44 36.44 38.48 40.44

Hiranandani Developers Pvt. Ltd 34.25 33.5 30 31 32.15 28.14 45 42

Indiabulls Real Estate Limited 33.55 26.45 27.26 28 30.28 29.28 34 33.28

IRB Infrastructure Developers Ltd. 145 123 156 178 189 184 150.23

144

Kalpataru Properties Pvt. Ltd. 30.18 32 40.15 42.45 43.2 37.2 41.1 42.2

Kanakia Spaces 25.2 28.45 30.25 32.52 38.15 36.23 43.6 40.25

Kanungo Group 28.25 32.59 40.26 42.35 33.15 37.47 50.25 45.2

Karnani Builders & Developers 30.15 33.5 42.4 42.15 32.75 35.56 52.24 48.27

Kumar Urban Development Limited 12.78 17.78 18.78 17 15 13 18 19

K. Raheja Corp 25.2 28.45 30.25 32.52 38.15 36.23 40.25 43.6

Lalani Group 28.25 32.59 40.26 42.35 33.15 37.47 45.2 50.25


179 180.09

198.78

210.13

215.78 211 218.78

229.79 Lodha Group 25 28.54 32.52 30.25 38.25 36.23 40.25 43.6



Mighty Constructions Pvt. Ltd. 138 133 146.15

147.15

150 165.1 175.1 183.1

Mittal Builders 27.35 23.44 29.23 30.16 32 30.18 32.59 33.06

Nahar Group 29.34 30.15 31.47 31.9 32.59 28.25 30.25 32.52

Nirmal Lifestyle 25.15 27.35 29.34 30.45 33.5 30.15 33.26 34.25

Oberio Reality 160.09 156.9 167.89

178.78

190.89 183.89

148 146

Patel Realty India Ltd. 27.35 27.15 29.34 30.45 32.5 30.5 33.26 34.25

Peninsula Land Limited 1500 1534 1520.36

1490 1127 1200 1823 1857

Rohan Builders 167.09 145.09

187.21

178.09

197.68 200.12

225.18

213.89 Royal Palms India Private Limited 23.26 22.03 26.06 33.80

1 45.57 37.31 84.72 78.25



Sheth Developers Pvt. Ltd. 67.09 45.09 87.21 78.09 97.68 92.12 133 125.18 SUN CORP Builders & Developers 22.16 17.12 30.9 28.22 31.18 28.78 30 28

Sunil Mantri Realty Ltd. 20 28 38.15 34 35 27.25 35.12 29.23

Supreme Developers & Builders 187.12 192.16

203.9 198.22

215 178 221.6 190.89 TATA Housing Development Company

Ltd. 133.56 138 148.1

5 144 155 147 153 150.1

2 Source: Collected through Questionnaires and Interview method

229

Figure: 6.4.103- Equity of the Real Estate Companies during Global recession

Interpretation- From the above data and graph we can analyze that in the year 2009, the real estate companies Aakruti Group, Acme Group, Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Morya Constructions, Nahar Group, Nirmal Lifestyle, Oberio Reality, Orbit, Patel Realty India Ltd, Peninsula Land Limited, Prescon, RNA Corp, Rohan Builders, Royal Palms India Private Limited, Rustomejee, Runwal Group, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders, TATA Housing Development Company Ltd,Unitech Limited, Veena Developers and Vijay Associates Wadhwa Developers had their equity affected. The impact of recession on equity was less compare to the other parameters like impact of recession on budget, profit, taxes, attrition, assets and liabilities. The fluctuations in the operations of the reality sector from 2004-2010 vary mainly due to global recession in 2009 which sent threat flaps to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market. The reality sector suffered badly due to recession as their deals were disturbed and due to overlapping of bidding and asking spread.

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Equity of the Real Estate Companies during Global Recession

2004 2005 2006 2007 2008 2009 2010 2011

Equity


230

H0: 1. Performance of the selected real estate companies has not affected by

Global Recession.


Table: 6.4.93.1- Hypothesis of Parametric T Test Statistics - Performance of the

selected real estate companies has not affected by Global Recession.

T Test Statistics


Mean Differe

nce

Standard Deviation Difference Df

Calculated statistic T value at

95% confidence

level

Tabulated T Value

at 95% confidenc

e level

Budget of the Real Estate companies 0.627 2.08243 39 1.0556 2.021 Net Profit of the Real Estate Companies 0.692 8.1132 39 0.2522 2.021 Taxes paid by the Real Estate Companies 0.326 3.7548 39 0.5042 2.021 Changes in the number of employees of Real Estate Companies

9.822 69.220

39 0.3134

2.021

Total assets of the Real estate companies 1.322 3.8278 39 0.9820 2.021 Total liabilities of the Real estate companies 1.707 8.7517 39 1.3041 2.021 Equity of the Real Estate Companies 0.8474 13.23 39 0.4666 2.021


Interpretation - The hypothesis results of Parametric T test of the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd, are as follows: Since the calculated statistic T value at 5% level of significance is less than the Tabulated T value 2.021 for all the parameters Budget, Net profit, Tax paid, Changes in number of employees, Assets, liabilities and equity. Hence we accept H0 and conclude that Performance of the selected real estate companies has not affected by Global Recession.

232

Non Parametric Test-Chi square Test

Table: 6.4.93.1.1- Hypothesis of Non Parametric Test-Chi Square Test Statistics-

Performance of the selected real estate companies has not affected by Global

Recession


Particulars

Calculated statistic Chi

square Value at

95% confidence

level df


level Budget of the Real Estate companies 0.5769 39 26.509 Net Profit of the Real Estate Companies 0.4934 39 26.509 Taxes paid by the Real Estate Companies 0.7202 39 26.509 Changes in the number of employees of Real Estate Companies 0.0037 39 26.509 Total assets of the Real estate companies 0.6537 39 26.509 Total liabilities of the Real estate companies 0.4405 39 26.509 Equity of the Real Estate Companies 0.64179 39 26.509


Interpretation- The hypothesis results of Non Parametric Chi-Square Test of the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd are as follows:

Since the calculated statistic Chi square value at 5% level of significance is less than the Tabulated Chi sqaure value 26.509 for all the parameters (Budget, Net profit, Taxes paid, Changes in number of employees, Assets, liabilities, and equity). Hence we accept H0 and conclude that Performance of the selected real estate companies has not been affected by Global Recession.

233

2. To understand the current overall Real Estate companies’ situation and to study

that how can it be improved in future?

Table-6.4.94 Growth of real estate companies during Global recession

Name of the Real Estate Companies Growth of real estate companies during Global recession

Before Recession* After Recession** Adhiraj Constructions Pvt. Ltd. 1 2 Ahuja Group 5 3 Ajmera Group 5 4 Akruti City Limited 4 2 DLF 2 5 Ecohomes Constructions Pvt. Ltd 3 5 EKTA World Pvt. Ltd. 5 4 Garodia Group 2 5 Godrej Properties Limited 5 5 Gyan Developers and Builders Limited 2 5 Hiranandani Developers Pvt. Ltd 2 4 Indiabulls Real Estate Limited 4 5 IRB Infrastructure Developers Ltd. 5 5 Kalpataru Properties Pvt. Ltd. 4 5 Kanakia Spaces 4 4 Kanungo Group 4 4 Karnani Builders & Developers 4 4 Kumar Urban Development Limited 4 4 K. Raheja Corp 5 1 Lalani Group 5 4 Landmark Property Development Company 3 4 Lodha Group 5 4 Lokhandwala Infrastructure 5 4 Mayfair Housing Pvt. Ltd. 5 4 Mighty Constructions Pvt. Ltd. 5 4 Mittal Builders 2 3 Nahar Group 2 2 Nirmal Lifestyle 2 3 Oberio Reality 5 4 Patel Realty India Ltd. 3 3 Peninsula Land Limited 3 3 Rohan Builders 2 5 Royal Palms India Private Limited 5 5 Sanghvi Gruha Nirman Pvt. Ltd. 3 4 Shree Naman Developers Ltd. 3 4 Sheth Developers Pvt. Ltd. 3 4 SUN CORP Builders & Developers 5 5 Sunil Mantri Realty Ltd. 3 2 Supreme Developers & Builders 3 4 TATA Housing Development Company Ltd. 5 1


*Parameters of Growth Before recession (*Parameters of Growth Before recession (*Parameters of Growth Before recession (*Parameters of Growth Before recession (1 stands for Significantly decreasing , 2 Stands for Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly increasing).

**Parameters of Growth after recession**Parameters of Growth after recession**Parameters of Growth after recession**Parameters of Growth after recession(1stands for Significantly negative impact, 2 stands for Slightly negative impact, 3 stands for No impact, 4 stands for Slightly positive impact and 5 stands for Significantly positive impact).

234

Figure: 6.4.105-Growth of Real Estate Companies before Global recession

Figure: 6.4.106-Growth of Real Estate Companies after Global recession

Interpretation- The above data and graph depicts that how as the growth of these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan

Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd, before and after recession. If we go through the real estate companies DLF, Ecohomes Constructions Pvt. Ltd, Garodia Group, Godrej, Hiranandani Developers Pvt. Ltd, India Bulls, IRB, Rohan Builders, Royal, Sheth Developers Pvt. Ltd, and Tata had significantly shown increase in the growth, few of the real estate companies’ showed fluctuations and rest showed decrease in their growth before recession. After the global recession we can see that most of them showed significantly positive impact on their growth.

0

1

2

3

4

5

6

Growth of Real Estate Companies before Global recession

Significantly decreasingAttained breakevenNo ImpactFluctuationsSignificantly increasing

Growth before recessio n


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Growth of real estate companies after Global recession

Significantly negative impactSlightly negative impactNo ImpactSlightly positive impactSignificantly positive impact


Name of the real estate companies

234

Table: 6.4.95- Rates of flats of Real Estate Companies affected by Global recession

Name of the Real Estate Companies Rates of flats of Real Estate Companies affected

by Global recession Before Recession* After Recession**

Adhiraj Constructions Pvt. Ltd. 5 2 Ahuja Group 3 2 Ajmera Group 4 2 Akruti City Limited 5 2 DLF 3 3 Ecohomes Constructions Pvt. Ltd 4 2 EKTA World Pvt. Ltd. 5 4 Garodia Group 3 2 Godrej Properties Limited 2 4 Gyan Developers and Builders Limited 4 5 Hiranandani Developers Pvt. Ltd 1 3 Indiabulls Real Estate Limited 1 4 IRB Infrastructure Developers Ltd. 5 4 Kalpataru Properties Pvt. Ltd. 5 5 Kanakia Spaces 1 2 Kanungo Group 1 2 Karnani Builders & Developers 4 4 Kumar Urban Development Limited 3 2 K. Raheja Corp 3 4 Lalani Group 2 1 Landmark Property Development 1 2 Lodha Group 3 3 Lokhandwala Infrastructure 3 3 Mayfair Housing Pvt. Ltd. 5 4 Mighty Constructions Pvt. Ltd. 4 3 Mittal Builders 5 4 Nahar Group 5 3 Nirmal Lifestyle 3 4 Oberio Reality 2 3 Patel Realty India Ltd. 5 1 Peninsula Land Limited 4 3 Rohan Builders 5 3 Royal Palms India Private Limited 3 2 Sanghvi Gruha Nirman Pvt. Ltd. 2 2 Shree Naman Developers Ltd. 2 2 Sheth Developers Pvt. Ltd. 1 3 SUN CORP Builders & Developers 2 2 Sunil Mantri Realty Ltd. 2 2 Supreme Developers & Builders 1 2 TATA Housing Development Company 2 1

Source: Collected through Questionnaires and Interview method *Parameters of*Parameters of*Parameters of*Parameters of Rates of flats Rates of flats Rates of flats Rates of flats Before recessionBefore recessionBefore recessionBefore recession ((((1 stands for Significantly decreasing , 2 Stands for

Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly increasing).

*Parameters of *Parameters of *Parameters of *Parameters of Rates of Flats after Rates of Flats after Rates of Flats after Rates of Flats after recessionrecessionrecessionrecession ((((1 stands for Worse affected, 2 Strongly affected, 3

stands for Somewhat affected 4 stands for Badly affected and 5 stands for Not affected).

235

Figure: 6.4.106- Rates of flats of Real Estate Companies before Global recession

Figure: 6.4.107- Rates of flats of Real Estate Companies after Global recession

Interpretation- From the above data and graph we can analyze that the rates of the flats before and after recession of these real estate companies Adhiraj Constructions Pvt. Ltd., Ahuja Group, Ajmera Group, DLF, Ecohomes Constructions Pvt. Ltd, Garodia Group, Godrej Properties Limited, Hiranandani Developers Pvt. Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, Lalani Group ,Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt.

Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, , Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders, TATA Housing Development Company Ltd. Before recession most of the real estate companies had their rates balanced. After recession there was difference in their rates on flats as most of them had been strongly and worse affected.

0123456

Rates of flats of Real Estate Companies after Global recession

Worse affectedStrongly affectedSomewhat affectedBadly affectedNot Affected

Rates of flats after recession


0123456

Rates of flats of Real Estate Companies before Global recession

Significantly decreasing Attained Break even

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Rates of flats before recessionName of the Real Estate Companies

236

Table: 6.4.96- Rates of shops of Real Estate Companies affected by Global recession


Rates of shops of Real Estate Companies affected by Global recession Before recession* After recession**

Adhiraj Constructions Pvt. Ltd. 5 2 Ahuja Group 5 2 Ajmera Group 1 2 Akruti City Limited 1 2 DLF 2 3 Ecohomes Constructions Pvt. Ltd 3 1 EKTA World Pvt. Ltd. 3 3 Garodia Group 4 1 Godrej Properties Limited 4 3 Gyan Developers and Builders Limited 4 4 Hiranandani Developers Pvt. Ltd 2 3 Indiabulls Real Estate Limited 2 3 IRB Infrastructure Developers Ltd. 4 5 Kalpataru Properties Pvt. Ltd. 3 4 Kanakia Spaces 2 1 Kanungo Group 1 1 Karnani Builders & Developers 1 1 Kumar Urban Development Limited 4 1 K. Raheja Corp 2 3 Lalani Group 1 1 Landmark Property Development Company 2 2 Lodha Group 1 3 Lokhandwala Infrastructure 1 3 Mayfair Housing Pvt. Ltd. 1 1 Mighty Constructions Pvt. Ltd. 1 1 Mittal Builders 2 1 Nahar Group 1 1 Nirmal Lifestyle 2 1 Oberio Reality 1 3 Patel Realty India Ltd. 3 1 Peninsula Land Limited 2 3 Rohan Builders 2 3 Royal Palms India Private Limited 5 2 Sanghvi Gruha Nirman Pvt. Ltd. 5 2 Shree Naman Developers Ltd. 5 2 Sheth Developers Pvt. Ltd. 4 2 SUN CORP Builders & Developers 3 2 Sunil Mantri Realty Ltd. 3 2 Supreme Developers & Builders 3 2 TATA Housing Development Company Ltd. 1 1

Source: Collected through Questionnaires and Interview method *Parameters of*Parameters of*Parameters of*Parameters of Rates of shops Rates of shops Rates of shops Rates of shops Before recessionBefore recessionBefore recessionBefore recession ((((1 stands for Significantly decreasing , 2 Stands for

Attained Break even , 3 stands for No Impact, 4 stands for Fluctuations and 5 stands for Significantly increasing).

*Parameters of *Parameters of *Parameters of *Parameters of Rates of shops after Rates of shops after Rates of shops after Rates of shops after recessionrecessionrecessionrecession ((((1 stands for Worse affected, 2 Strongly affected, 3

stands for Somewhat affected 4 stands for Badly affected and 5 stands for Not affected).

237

Figure: 6.4.108-Rates of shops of Real Estate Companies before Global recession

Figure: 6.4.109-Rates of shops of Real Estate Companies after Global recession

Interpretation - The above data and graph depict the rates of shops of these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty

Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders, TATA Housing Development Company Ltd and Unitech Limited were affected at the time of recession and after recession. Before recession most of the real estate companies had their rates balanced. After recession there was difference in their rates on shops as most of them had been strongly and worse affected.

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Name of the Real Estate Compa

238

Table: 6.4.97- Role of Branding on Real Estate Companies during Global recession

Name of the Real estate companies Role of Branding on Real Estate Companies during Global recession

Before recession* After recession** Adhiraj Constructions Pvt. Ltd. 1 1 Ahuja Group 2 1 Ajmera Group 2 1 Akruti City Limited 2 1 DLF 1 1 Ecohomes Constructions Pvt. Ltd 1 1 EKTA World Pvt. Ltd. 1 2 Garodia Group 1 1 Godrej Properties Limited 1 1 Gyan Developers and Builders Limited 1 1 Hiranandani Developers Pvt. Ltd 1 1 Indiabulls Real Estate Limited 2 1 IRB Infrastructure Developers Ltd. 1 1 Kalpataru Properties Pvt. Ltd. 2 2 Kanakia Spaces 2 1 Kanungo Group 2 1 Karnani Builders & Developers 1 1 Kumar Urban Development Limited 1 1 K. Raheja Corp 1 1 Lalani Group 1 2 Landmark Property Development Company 1 1 Lodha Group 1 1 Lokhandwala Infrastructure 1 2 Mayfair Housing Pvt. Ltd. 1 1 Mighty Constructions Pvt. Ltd. 1 2 Mittal Builders 1 1 Nahar Group 1 1 Nirmal Lifestyle 1 1 Oberio Reality 1 1 Patel Realty India Ltd. 1 1 Peninsula Land Limited 1 1 Rohan Builders 1 1 Royal Palms India Private Limited 2 1 Sanghvi Gruha Nirman Pvt. Ltd. 1 1 Shree Naman Developers Ltd. 1 1 Sheth Developers Pvt. Ltd. 1 1 SUN CORP Builders & Developers 1 1 Sunil Mantri Realty Ltd. 1 1 Supreme Developers & Builders 1 1 TATA Housing Development Company Ltd. 1 1


****Parameters of Role of Branding Before recession (Parameters of Role of Branding Before recession (Parameters of Role of Branding Before recession (Parameters of Role of Branding Before recession (1 stands for Yes and 2 Stands for No).

**Parameters of Role of Branding after recession (**Parameters of Role of Branding after recession (**Parameters of Role of Branding after recession (**Parameters of Role of Branding after recession (1 stands for Yes and 2 Stands for No).

239

Figure: 6.4.110- Role of Branding on Real Estates Companies before Global recession

Figure: 6.4.111- Role of Branding on Real Estates Companies after Global recession

Interpretation- The above data and graph analyzes these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders,

Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd strongly agree for branding. Branding plays important role in building an image for any company. During recession it has become necessary for the companies to brand build their products and create an image of its own in the market. Actually we feel that recession period is our worse dimension for any business but it is proved to be the finest dimension for building the brands. Those companies who will invest in their brands will actually reap benefits in the longer run as their brands would have become the world’s best products or properties when the economy starts improving.

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240

Table 6.4.98- Role of Media on Real Estate Companies during Global recession


*Parameters of Role of Media Before recession (*Parameters of Role of Media Before recession (*Parameters of Role of Media Before recession (*Parameters of Role of Media Before recession (1 stands for Yes and 2 Stands for No).

**Parameters of Role of Media after recessi**Parameters of Role of Media after recessi**Parameters of Role of Media after recessi**Parameters of Role of Media after recession (on (on (on (1 stands for Yes and 2 Stands for No).

Name of the Real Estate companies Role of Media on Real Estate Companies during Global recession


241

Figure: 6.4.112-Role of Media on Real Estate Companies before Global recession

Figure: 6.4.113-Role of Media on Real Estate Companies after Global recession

Interpretation- From the above data and graph we can analyze that these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula

Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd agree that media attention is important for the promotion of their properties before and after recession. Media plays important role in building the brand image during recession for those companies which have lost their production and sales due to global recession. The same is done by the real estate companies by doing promotions of their properties through media like advertising in televisions, newspapers, magazines and through sponsorships for any mega event.

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Yes No

Role of media after recession

Name ofthe Real Estate Companies

242

Table: 6. 4.99- Challenges faced by the Real estate companies during Global recession

Name of the Real Estate companies Challenges faced by Real Estate companies during Global recession

Fiscal Aid from the

Financial Institutions

Getting raw materials and

labour force for the construction

of the sites

Debt restructuring

Getting Transpo

rt service

Budget reducti

ons

Adhiraj Constructions Pvt. Ltd. 1 2 3 4 0 Ahuja Group 1 2 3 4 5 Ajmera Group 1 0 3 4 5 Akruti City Limited 1 2 3 4 5 DLF 1 0 3 4 5 Ecohomes Constructions Pvt. Ltd 1 2 3 4 5 EKTA World Pvt. Ltd. 1 0 0 0 5 Garodia Group 1 2 3 4 5 Godrej Properties Limited 1 2 0 4 5 Gyan Developers and Builders Limited 1 2 3 4 5 Hiranandani Developers Pvt. Ltd 1 2 3 4 5 Indiabulls Real Estate Limited 1 2 3 4 5 IRB Infrastructure Developers Ltd. 1 2 3 4 5 Kalpataru Properties Pvt. Ltd. 1 2 3 4 5 Kanakia Spaces 1 2 3 4 5 Kanungo Group 1 2 3 4 5 Karnani Builders & Developers 1 2 3 4 5 Kumar Urban Development Limited 1 2 3 4 5 K. Raheja Corp 1 2 3 4 5 Lalani Group 1 2 3 4 5 Landmark Property Development Company 1 2 3 4 5 Lodha Group 0 2 3 4 5 Lokhandwala Infrastructure 1 2 0 4 5 Mayfair Housing Pvt. Ltd. 1 2 3 4 5 Mighty Constructions Pvt. Ltd. 1 2 3 4 5 Mittal Builders 1 2 3 4 5 Nahar Group 1 2 3 4 5 Nirmal Lifestyle 1 2 3 4 5 Oberio Reality 1 2 3 4 5 Patel Realty India Ltd. 1 2 3 4 5 Peninsula Land Limited 1 2 3 4 5 Rohan Builders 1 2 3 4 5 Royal Palms India Private Limited 1 2 3 4 5 Sanghvi Gruha Nirman Pvt. Ltd. 1 2 3 4 5 Shree Naman Developers Ltd. 1 2 3 4 5 Sheth Developers Pvt. Ltd. 1 2 3 4 5 SUN CORP Builders & Developers 1 2 3 4 5 Sunil Mantri Realty Ltd. 1 2 3 4 5 Supreme Developers & Builders 1 2 3 4 5 TATA Housing Development Company 1 2 3 4 5


243

Figure: 6.4.114- Challenges faced by the Real estate companies during Global recession

Interpretation- The above data and graph provides us the picture of what challenges does these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd faced challenges in getting Fiscal Aid from the Financial Institutions ,Getting raw materials a and labour force for the construction of the sites, Debt restructuring, Getting Transport service and Budget reductions. Though the price of raw materials had been decreased, the transportation was difficult as most of the existing drivers and labour force denied to work because they were forced to work with less pay with no hike. Many other workforce were laid off by their respective companies in the name of cost cutting so they transportation and labour force became a major challenge to the reality sector. Even getting fiscal aid also became difficult as the financial institutions themselves were running shortage of funds and employees.

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Fiscal Aid from Fianncial institutionsGetting raw materials and labour force for the construction of the sitesDebt restructuringGetting Transport serviceBudget Reductions

Challenges

Name of the Real Estate companies

244

H0: 2. There is no considerable difference in the development of real estate

companies during the recession period

Parametric Test- T Test

Table: 6.4.100.1- Hypothesis of Parametric T Test Statistics- There is no

considerable difference in development of real estate companies during the recession

period

T Test Statistics


Mean Difference


Calculated statistic T


level


95% confidence

level Growth of real estate companies 0.1 1.6298 39 1.532 2.021 Rates of flats of Real Estate Companies 0.225 1.4500 39 0.98167 2.021 Rates of shops of Real Estate Companies 0.375 1.4840 39 1.598 2.021 Role of Branding on Real Estates Companies 0.075 0.4529 39 1.0474 2.021 Role of Media on Real Estates Companies 0.025 0.3922 39 0.4032 2.021


Interpretation- The hypothesis results of Parametric T Test of the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd, are as follows:

Since the calculated statistic T value at 5% level of significance is less than the Tabulated T value 2.021 for all the parameters Growth of real estate companies, Rates on Flats, rates of shops, Role of branding and Role of media during Global recession. Hence we accept H0 and conclude that there is no considerable difference in the development of real estate companies during the recession period.

245

Non Parametric Test- Chi square test

Table: 6.4.100.1.1- Hypothesis of Non parametric test- Chi- square Test Statistics -

There is no considerable difference in the development of real estate companies

during the recession period


Particulars



level df


level Growth of real estate companies 0.11804 39 26.509 Rates of flats of Real Estate Companies 0.19689 39 26.509 Rates of shops of Real Estate Companies 0.00924 39 26.509 Role of Branding on Real Estates Companies 0.99999 39 26.509 Role of Media on Real Estates Companies 1.00000 39 26.509

Source: Collected through Questionnaires and Interview method Interpretation- The hypothesis results of Non Parametric Chi-Square Test of the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd, are as follows: Since the calculated statistic Chi square value at 5% level of significance is less than the Tabulated Chi sqaure value 26.509 for all the parameters Growth of real estate companies, Rates on Flats, Rates on shops, Branding and role of Media during Global recession. Hence we accept the H0 and conclude that there is no considerable difference in the development of real estate companies during the recession.

246


Table: 6.4 101- Impact of budgetary Policies on Real Estate Companies during Global Recession

Name of the real estate companies Impact of budgetary policies on Real Estate Companies during Global Recession



Parameters of Impact of BudgetParameters of Impact of BudgetParameters of Impact of BudgetParameters of Impact of Budgetary policiesary policiesary policiesary policies before recession (before recession (before recession (before recession (1 stands for Yes and 2 stands for No

Parameters of Impact of Budget After recession (Parameters of Impact of Budget After recession (Parameters of Impact of Budget After recession (Parameters of Impact of Budget After recession (1 stands for Yes and 2 stands for No).

247

Figure: 6.4.115-Impact of budgetary Policies on Real Estate Companies before Global recession

Figure: 6.4.116-Impact of budgetary Policies on Real Estate Companies after Global recession

Interpretation- The above data and graph shows the impact of budgetary policies on these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel

Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd before and after recession. These real estate companies Akruti City Limited, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd., Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group and Peninsula Land Limited were not affected by the budgetary policies after recession. For the rest of the reality sector the budgetary policies have provided relief as the new housing policies were announced.

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Impact of Budgetary policies before recession


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Name of the Real Estate compani

248

Table: 6.4.102- Impact of Global Recession on new projects of Real Estate Companies

Source: Collected through Questionnaires and Interview method Parameters of Impact on New projects during recession (Parameters of Impact on New projects during recession (Parameters of Impact on New projects during recession (Parameters of Impact on New projects during recession (1 stands for Yes and 2 stands for No)

Name of the real estate companies Impact of Global Recession on new projects of Real Estate Companies

Yes No Adhiraj Constructions Pvt. Ltd. 1 0

Ahuja Group 1 0

Ajmera Group 1 0

Akruti City Limited 1 0

DLF 1 0

Ecohomes Constructions Pvt. Ltd 1 0

EKTA World Pvt. Ltd. 1 0

Garodia Group 0 2

Godrej Properties Limited 0 2

Gyan Developers and Builders Limited 1 2

Hiranandani Developers Pvt. Ltd 1 0

Indiabulls Real Estate Limited 1 0

IRB Infrastructure Developers Ltd. 1 2

Kalpataru Properties Pvt. Ltd. 1 0

Kanakia Spaces 1 0

Kanungo Group 0 2

Karnani Builders & Developers 0 2

Kumar Urban Development Limited 0 2

K. Raheja Corp 1 0

Lalani Group 1 0

Landmark Property Development Company 0 2

Lodha Group 1 0

Lokhandwala Infrastructure 1 0

Mayfair Housing Pvt. Ltd. 1 0

Mighty Constructions Pvt. Ltd. 1 0

Mittal Builders 1 0

Nahar Group 1 0

Nirmal Lifestyle 1 0

Oberio Reality 1 0

Patel Realty India Ltd. 1 0

Peninsula Land Limited 1 0

Rohan Builders 0 2

Royal Palms India Private Limited 1 0

Sanghvi Gruha Nirman Pvt. Ltd. 1 0

Shree Naman Developers Ltd. 0 2

Sheth Developers Pvt. Ltd. 1 0

SUN CORP Builders & Developers 0 2

Sunil Mantri Realty Ltd. 1 0

Supreme Developers & Builders 1 0

TATA Housing Development Company Ltd. 1 0

249

Figure: 6.4.117- Impact of Global Recession on new projects of Real Estate Companies

Interpretation - The above data and graph depicts the impact of recession on new projects of these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd .

Most of the real estate companies had their new projects postponed due to the slowdown of the economy, shortage of funds and other challenges like getting raw materials, transportation of materials to the construction sites, shortage of labour force and restructure of debt.

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Impact of Global Recession on future projects of Real Estate Companies

yes No



250

Table: 6.4.103 Impact of rates on Housing loan during Global recession

Name of the Real Estate Companies Impact of rates on Housing loan during Global recession Before recession* After Recession**

Adhiraj Constructions Pvt. Ltd. 2 1 Ahuja Group 3 1 Ajmera Group 2 1 Akruti City Limited 2 1 DLF 2 3 Ecohomes Constructions Pvt. Ltd 2 1 EKTA World Pvt. Ltd. 3 3 Garodia Group 3 1 Godrej Properties Limited 2 3 Gyan Developers and Builders Limited 2 2 Hiranandani Developers Pvt. Ltd 3 2 Indiabulls Real Estate Limited 1 2 IRB Infrastructure Developers Ltd. 0 1 Kalpataru Properties Pvt. Ltd. 1 2 Kanakia Spaces 1 2 Kanungo Group 1 2 Karnani Builders & Developers 1 2 Kumar Urban Development Limited 1 2 K. Raheja Corp 2 1 Lalani Group 2 1 Landmark Property Development Company 2 2 Lodha Group 3 4 Lokhandwala Infrastructure 3 4 Mayfair Housing Pvt. Ltd. 1 1 Mighty Constructions Pvt. Ltd. 1 1 Mittal Builders 1 1 Nahar Group 1 1 Nirmal Lifestyle 1 1 Oberio Reality 3 2 Patel Realty India Ltd. 1 1 Peninsula Land Limited 4 2 Rohan Builders 2 2 Royal Palms India Private Limited 1 1 Sanghvi Gruha Nirman Pvt. Ltd. 1 1 Shree Naman Developers Ltd. 1 1 Sheth Developers Pvt. Ltd. 1 1 SUN CORP Builders & Developers 1 1 Sunil Mantri Realty Ltd. 1 1 Supreme Developers & Builders 1 1 TATA Housing Development Company Ltd. 1 1


*Parameters of Impact of rates on Housing loan before recession (*Parameters of Impact of rates on Housing loan before recession (*Parameters of Impact of rates on Housing loan before recession (*Parameters of Impact of rates on Housing loan before recession (1 stands 15%, 2 Stands for 20%, 3 stands for 25%, and 4 stands for 30%).

**Parameters of Impact of rates on Housing loan after recession**Parameters of Impact of rates on Housing loan after recession**Parameters of Impact of rates on Housing loan after recession**Parameters of Impact of rates on Housing loan after recession (1 stands 7%, 2 Stands for 9%, 3 stands for 15%, and 4 stands for 18%).

251

Figure: 6.4.118 - Impact of rates on Housing loan of Real Estate Companies before Global recession

Figure: 6.4.119-Impact of rates on Housing loan of Real Estate Companies after Global recession

Interpretation- From the above data and graph we can analyze that most of these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd had less impact on the rates on housing loan before and after recession. The rates on housing loan before recession was exhoboraint as these real estates' had their own financial help linked too many banks as well their own financial institutions giving loans to their clients without security deposit. The rates on housing loan after recession was less as most of the customers of real estate had lost their jobs or were getting low salary due to market slowdown for which government intervened to reduce the loan rates.

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Impact rates on Housing Loan after recession


252

Table: 6.4.104- Impact of rates on raw materials of Real Estate Companies during Global recession

Name of the Real Estate Companies Impact of rates on raw materials of Real Estate Companies during Global recession

Before recession* After Recession** Adhiraj Constructions Pvt. Ltd. 2 1 Ahuja Group 3 1 Ajmera Group 2 1 Akruti City Limited 2 1 DLF 2 1 Ecohomes Constructions Pvt. Ltd 2 3 EKTA World Pvt. Ltd. 3 1 Garodia Group 3 5 Godrej Properties Limited 2 1 Gyan Developers and Builders Limited 2 3 Hiranandani Developers Pvt. Ltd 3 2 Indiabulls Real Estate Limited 1 2 IRB Infrastructure Developers Ltd. 3 2 Kalpataru Properties Pvt. Ltd. 4 1 Kanakia Spaces 4 2 Kanungo Group 4 2 Karnani Builders & Developers 4 2 Kumar Urban Development Limited 5 2 K. Raheja Corp 2 2 Lalani Group 2 5 Landmark Property Development Company 2 5 Lodha Group 3 2 Lokhandwala Infrastructure 3 4 Mayfair Housing Pvt. Ltd. 1 4 Mighty Constructions Pvt. Ltd. 1 1 Mittal Builders 1 1 Nahar Group 1 1 Nirmal Lifestyle 1 1 Oberio Reality 3 1 Patel Realty India Ltd. 1 1 Peninsula Land Limited 4 1 Rohan Builders 2 1 Royal Palms India Private Limited 1 2 Sanghvi Gruha Nirman Pvt. Ltd. 1 1 Shree Naman Developers Ltd. 1 1 Sheth Developers Pvt. Ltd. 1 1 SUN CORP Builders & Developers 1 1 Sunil Mantri Realty Ltd. 1 1 Supreme Developers & Builders 1 1 TATA Housing Development Company Ltd. 1 1 Source: Collected through Questionnaires and Interview method *Parameters of Impact of rates on raw materials Before recession (*Parameters of Impact of rates on raw materials Before recession (*Parameters of Impact of rates on raw materials Before recession (*Parameters of Impact of rates on raw materials Before recession (1 stands for 10%, 2 stands 15%, 2 Stands for 20%, 3 stands for 25%, and 4 stands for 30%) .

**Parameters of Impact of rates on raw materials after recession**Parameters of Impact of rates on raw materials after recession**Parameters of Impact of rates on raw materials after recession**Parameters of Impact of rates on raw materials after recession (1 stands 5%, 2 Stands for 10%, 3 stands for 12%, 4 stands for 15% and 5stands for 17%).

253

Figure: 6.4.120-Impact of rates on raw materials of Real Estate Companies before Global recession

Figure: 6.4.121- Impact of rates on raw materials of Real Estate after Global recession

Interpretation- Most of these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd had less impact on the rates of raw materials before and after recession. The rates on raw materials before recession was exhoboraint as the suppliers were providing commissions to their retailers and also discounts to their regular customers. The rates on raw materials after recession was less as most of the suppliers had to shut down their units as they could not afford to give commissions to their retailers and also discounts to their regular customers. Hence government had to reduce the rates on raw materials for the uplift of the people of the country during the recession.

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Impact of rates on Raw materials after recession


1

Table: 6.4.105- Risk of second recession of Real Estate Companies

Name of the real estate companies Yes No Adhiraj Constructions Pvt. Ltd. 1 0 Ahuja Group 1 0 Ajmera Group 1 0 Akruti City Limited 1 0 DLF 1 0 Ecohomes Constructions Pvt. Ltd 0 2 EKTA World Pvt. Ltd. 1 0 Garodia Group 0 2 Godrej Properties Limited 1 0 Gyan Developers and Builders Limited 1 0 Hiranandani Developers Pvt. Ltd 1 0 Indiabulls Real Estate Limited 1 0 IRB Infrastructure Developers Ltd. 0 2 Kalpataru Properties Pvt. Ltd. 1 0 Kanakia Spaces 1 0 Kanungo Group 1 0 Karnani Builders & Developers 1 0 Kumar Urban Development Limited 1 0 K. Raheja Corp 0 2 Lalani Group 1 0 Landmark Property Development Company 1 0 Lodha Group 1 0 Lokhandwala Infrastructure 1 0 Mayfair Housing Pvt. Ltd. 1 0 Mighty Constructions Pvt. Ltd. 0 2 Mittal Builders 1 0 Nahar Group 1 0 Nirmal Lifestyle 1 0 Oberio Reality 1 0 Patel Realty India Ltd. 0 2 Peninsula Land Limited 1 0 Rohan Builders 1 0 Royal Palms India Private Limited 0 2 Sanghvi Gruha Nirman Pvt. Ltd. 1 0 Shree Naman Developers Ltd. 1 0 Sheth Developers Pvt. Ltd. 1 0 SUN CORP Builders & Developers 0 2 Sunil Mantri Realty Ltd. 1 0 Supreme Developers & Builders 1 0 TATA Housing Development Company Ltd. 0 2


Parameters of Risk of second recession (Parameters of Risk of second recession (Parameters of Risk of second recession (Parameters of Risk of second recession (1 stands for Yes and 2 stands for No)

255

Figure: 6.4.122 - Risk of second recession of Real Estate Companies

Interpretation- The above data and graph give a picture of risk of having second recession on these real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd.

There are chances of risk of having second recession which might wipe out many companies of reality sector. Out of 51 companies there are 47 companies which are likely to get affected due to the second recession.

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Riskof second recession

Name of the Real estate companies

256


Recession on Indian real estate companies

Parametric Test - T-test

Table: 6.4.106.1- Hypothesis of Parametric T-test Statistics- There is no impact of

Government Policies to minimize the effect of Global Recession on Indian real estate

companies

T-test Statistics Particulars Test Value = 40

Mean Difference

Standard

Deviation

Difference df

Calculated

Statistic T value at 95%

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Tabulated T Value

at 95% confide

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Impact of budgetary policies of Real Estate Companies 0.05 0.599 39 0.527 2.021 Impact of rates on Housing loan of Real Estate Companies 0.05 0.8164 39 0.387 2.021 Impact of rates on raw materials of Real Estate Companies 0.375 1.3204 39 1.7968 2.021 Risk of second recession of Real Estate Companies 0.3225 1.2380 39 1.710 2.021


Interpretation - The hypothesis results of Parametric T Test of the real estate companies Aakruti Group, Acme Group, Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Orbit, Patel Realty India Ltd, Peninsula Land Limited, Prescon, RNA Corp, Rohan Builders, Royal Palms India Private Limited, Rustomejee, Runwal Group, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders, TATA Housing Development Company Ltd,Unitech Limited, Veena Developers and Vijay Associates Wadhwa Developers.

Since the Calculated Statistic T value at 5% level of significance is less than the Tabulated T value 2.021 for all the parameters - Impact of Budget, Rates of housing loan and Rates on raw materials during Global recession and Risk of second recession. Hence we accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian real estate companies.

257

Non Parametric Test-Chi square test

Table: 6.4.106.1.1- Hypothesis of Non Parametric Test- Chi square Test Statistics -

There is no impact of Government Policies to minimize the effect of Global

Recession on Indian real estate companies

Chi square Test Statistics Particulars Calculated

statistic Chi square Value

at 95% confidence

level Df


value at 95%

confidence level

Impact of budgetary policies on Real Estate Companies 0.99999 39 26.509 Impact of rates on Housing loan of Real Estate Companies 0.98615 39 26.509

Impact of rates on raw materials of Real Estate Companies 0.03410 39 26.509


Interpretation- The hypothesis results of Non Parametric Chi-Square Test of the real estate companies Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd. Since the calculated statistic Chi sqaure value at 5% level of significance is less than the Tabulated Chi Sqaure value 26.509 for all the parameters - Impact of Budget, Rates of housing loan before and after global recession and Rates on raw materials before and after Global recession. Hence we accept H0 and conclude that there is no impact of Government Policies to minimize the effect of Global Recession on Indian real estate companies.

258

Table: 6.4.107.1- Overall Economy of the Real Estate Sector With Respect To the Performance of the Real Estate Companies

Source: Collected through Questionnaires and Interview method Figure: 6.4.123.1-Overall Economy of the Real Estate Sector With Respect To the Performance of the Real Estate Companies

0

500

1000

1500

2000

2500

3000

3500

Budget Net profit Taxes Changes Total Assets

Total Liabilities

Equity

Overall Economy of the Real Estate Sector With Respect To the Performance of the Real Estate Companies

2004 2005 2006 2007

2008 2009 2010 2011

Yearly representation of Parameters

Parameters

Year-wise 2004 2005 2006 2007 2008 2009 2010 2011

Parameters

Budget 13.14 13.37 15.23 14.99 16.77 15.07 17.8 17.75

Net profit 15.20 15.15 23.28 22.14 34.88 32.70 43.56 48.09

Taxes 23.28 22.02 27.48 27.17 32.82 31.70 32.90 33.35

Changes in number of employees 380.75 369.87 309.83 389.02 421.80 415.22 321.3 333.77

Total Assets 29.29 31.44 36.88 36.52 39.40 33.31 40.50 40.57

Total Liabilities 46.01 46.13 56.28 55.19 57.39 56.38 54.04 53.21

Equity 93.17 93.69 103.32 103.44 98.22 96.60 118.67 118.29

259

Table: 6.4.107.1.1-Overall Economy of the Real Estate Sector with Respect To the Development through Initiatives taken by Indian Government

Parameters Growth before

recession

Growth afte

r recession

Role of Media on before recession

Rates of flats of after recession

Rates of

shops of

before

recession

Rates of

shops

after

recession

Role of Branding on before recession

Role of Branding on

after

recession


Role of Media afte

r recession

Challenges

Impact of Budg

et befor

e recess

ion

Impact of

Budget afte

r recession

Impact of global recession on

future

project

s

Impact of

rates on Housin

g loan

before recession

Impact of rates

on Housing loan after

recession

Impact of

rates on

raw materials before

recession

Impact of

rates on

raw material

after recession

Risk of second recessi

on


0.05

0.03 0.3

Attained breakeven

0.78

0.35 0.5

No change 1.31

0.68 0.53

Fluctuations 1.36

0.6 0.6

Significantly Increasing 3.7

1.25 0.63


0.05


2

No impact 0.38


1.8


1.38

Worse affected 0.38

0.4

Strongly affected 0.6 0.6

Somewhat affected 0.7 0.68

Badly affected 0.3 0.2

Not affected 0.13 0.13

Yes

0.7 0.65 0.88 0.95

0.75 0.7 0.82

0.95

No 0.3 0.35 0.25 0.05

0.45 0.5 0.35

0.05

Fiscal Aid 0.97

Getting raw materials and

1.85

Debt restructuring 2.77

Getting Transport service

3.9

Budget reductions 4.87

15%

0.53 0.31 0.5 0.2

20% 0.6 0.6

25% 0.6 0.5

30% 0.1 0.13

7% 0.58

9% 0.6

18% 0.31

10% 0.38 0.5

5% 0.6

12% 0.2

17% 0.38


260

Figure: 6.4.123.1.1-Overall Economy of the Real Estate Sector With Respect To the Development through Initiatives taken by Indian Government

Interpretation- The overall economy of the Real Estate Sector can be depicted by analyzing the above data and graphs of the Real estate Companies - Adhiraj Constructions Pvt. Ltd, Ahuja Group, Ajmera Group, Akruti City Limited, DLF, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd, Garodia Group, Godrej Properties Limited, Gyan Developers and Builders Limited, Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, IRB Infrastructure Developers Ltd, Kalpataru Properties Pvt. Ltd., Kanakia Spaces, Kanungo Group, Karnani Builders & Developers, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group, Landmark Property Development Company, Lodha Group, Lokhandwala Infrastructure, Mayfair Housing Pvt. Ltd, Mighty Constructions Pvt. Ltd, Mittal Builders, Nahar Group, Nirmal Lifestyle, Oberio Reality, Patel Realty India Ltd, Peninsula Land Limited, Rohan Builders, Royal Palms India Private Limited, Sanghvi Gruha Nirman Pvt. Ltd, Shree Naman Developers Ltd, Sheth Developers Pvt. Ltd., SUN CORP Builders & Developers, Sunil Mantri Realty Ltd, Supreme Developers & Builders and TATA Housing Development Company Ltd. The reduction of budget of Real estate companies was due to the economy and current market conditions that affected the financial forecast of the companies. The changes in the

inflation rate and stock market conditions directly affected the organization's net worth and its ability to generate funds or loans. After 2009 there is slight improvement in the allocation of budget as many reforms were taken by Government of India and the companies of reality sector. If we look at the figures of the net profit earned by the real estate companies we find that they vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market in 2009. The Government of India has proposed few reforms to overcome recession. As per the data, the taxes paid by the real estate vary from 2004-2010 as the operations and sales slowed down due to global recession and the foreign institutional investors withdrew the money from the market during 2009. The numerous policies or reforms are undertaken by many developers to increase their sales so that their profit margin increases. The change in number of employees in the real estate sector during the recession was due to sudden reduction in creation of employment; new appointees those were recruited were sent back home with advance three months salary due to company policy of cutting costs or were not given joining date and salary of many employees were reduced by twenty percent of their actual salary. The decline in investments began in the year 2007

0

2

4

6

8

Overall Economy of the Real Estate Sector with Respect To the Development through Initiatives taken by Indian Government

Growth before recession Growth after recessionRole of Media on before recession Rates of flats of after recessionRates of shops of before recession Rates of shops after recessionRole of Branding on before recession Role of Branding on after recessionRole of Media before recession Role of Media after recessionChallenges Impact of Budget before recessionImpact of Budget after recession Impact of global recession on future projects Impact of rates on Housing loan before recession Impact of rates on Housing loan after recession Impact of rates on raw materials before recession Impact of rates on raw materiaafter recessionRisk of second recession

Parameters

Parameters

261

as the investments of assets began to stagnate as the operations. Even banks were facing difficulties in getting funds from their customers. In the year 2010 and 2011the reality sector had to investment more on assets in order to earn more customers and to generate employment to most of the retrenched employees. There was decline in liabilities as companies had reduced in borrowing funds from the banks and other financial institutions or from money lenders. The fluctuations in the operations of the reality sector from 2004-2010 vary mainly due to global recession in 2009 which sent threat flaps to the world. Most of the customers and shareholders became unemployed due to cost cutting and there was huge downfall in the financial market. The reality sector suffered badly due to recession as their deals were disturbed and due to overlapping of bidding and asking spread. If we go through the real estate companies DLF, Ecohomes Constructions Pvt. Ltd, Garodia Group, Godrej, Hiranandani Developers Pvt. Ltd, India Bulls, IRB, Rohan Builders, Royal, Sheth Developers Pvt. Ltd, and Tata had significantly shown increase in the growth, few of the real estate companies’ showed fluctuations and rest showed decrease in their growth before recession. After the global recession we can see that most of them showed significantly positive impact on their growth. If we go through the real estate companies DLF, Ecohomes Constructions Pvt. Ltd, Garodia Group, Godrej, Hiranandani Developers Pvt. Ltd, India Bulls, IRB, Rohan Builders, Royal, Sheth Developers Pvt. Ltd, and Tata had significantly shown increase in the growth, few of the real estate companies’ showed fluctuations and rest showed decrease in their growth before recession. After the global recession we can see that most of them showed significantly positive impact on their growth. Before recession the Rates of flats and shops were balanced after recession there was difference in their rates on flats and shops as most of them had been strongly and worse affected. Branding plays important role in building an image for any company. During recession it has become necessary for the companies to brand build their products and create an image of its own in the market. Actually we feel that recession period is our worse dimension for any business but it is proved to be the finest dimension for building the brands. Those companies who will invest in their brands will actually reap benefits in the longer run as their brands would have become the world’s best products or properties when the economy starts improving. Media plays important role in building the brand image during recession for those companies which have lost their production and sales due to global recession. The same is done by the real estate companies by doing promotions of

their properties through media like advertising in televisions, newspapers, magazines and through sponsorships for any mega event. Most of the real estate companies faced challenges in getting Fiscal Aid from the Financial Institutions ,Getting raw materials a and labour force for the construction of the sites, Debt restructuring, Getting Transport service and Budget reductions. Though the price of raw materials had been decreased, the transportation was difficult as most of the existing drivers and labour force denied to work because they were forced to work with less pay with no hike. Many other workforce were laid off by their respective companies in the name of cost cutting so they transportation and labour force became a major challenge to the reality sector. Even getting fiscal aid also became difficult as the financial institutions themselves were running shortage of funds and employees. These real estate companies Akruti City Limited, Ecohomes Constructions Pvt. Ltd, EKTA World Pvt. Ltd., Hiranandani Developers Pvt. Ltd, Indiabulls Real Estate Limited, Kumar Urban Development Limited, K. Raheja Corp, Lalani Group and Peninsula Land Limited were not affected by the budgetary policies after recession. For the rest of the reality sector the budgetary policies have provided relief as the new housing policies were announced. The Most of the real estate companies had their future projects postponed due to the slowdown of the economy, shortage of funds and other challenges like getting raw materials, transportation of materials to the construction sites, shortage of labour force and restructure of debt. The rates on housing loan before recession was exhoboraint as these real estates' had their own financial help linked too many banks as well their own financial institutions giving loans to their clients without security deposit. The rates on housing loan after recession was less as most of the customers of real estate had lost their jobs or were getting low salary due to market slowdown for which government intervened to reduce the loan rates. The rates on raw materials before recession was exhoboraint as the suppliers were providing commissions to their retailers and also discounts to their regular customers. The rates on raw materials after recession was less as most of the suppliers had to shut down their units as they could not afford to give commissions to their retailers and also discounts to their regular customers. Hence government had to reduce the rates on raw materials for the uplift of the people of the country during the recession. There are chances of risk of having second recession which might wipe out many companies of reality sector. Out of 51 companies there are 47 companies which are likely to get affected due to the second recession

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