industry cursor march 2014

8/12/2019 Industry Cursor March 2014

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cursorIndustry

Issue 67 March 2014

CONTENTSStrictly for Private Circulation

Highlights

MACROECONOMIC UPDATE

Logistics & Supply Chain

Commercial Vehicle

Gems & Jewellery

Hi-Tech

Banking

Hospitality

IT-Hardware

Passenger Vehicle

Textile & Garment

Steel

Retail

Two and Three-Wheeler

2

4

5

7

6

8

3

9

10

11

15

14

13

12

Macroeconomic Update

Auto Components

India's GDP grew by 4.7% in Q3 FY14 as against 4.4% growth in Q3 FY13 and 4.8% in Q2FY14. The agriculture and services sectors registered y-o-y growth rates of 3.6% and 7.6%

respectively, while the industrial sector registered a decline of 0.7% (y-o-y) during the sameperiod.

Index of Industrial Production (IIP) grew merely by 0.1% (y-o-y) in Jan-14 after registering adecline for the last three consecutive months.

The mining sector registered a positive growth of 0.7% in Jan-14, as against a decline of1.8% during Jan -13.

The manufacturing sector continued to contract by 0.7% during Jan-14. The electricitysector recorded a growth of 6.5% in Jan-14, as compared to 6.4% in Jan-13.

Consumer durables and consumer non-durables sectors recorded growth of -8.3% and4.4% respectively, with growth in the overall consumer goods sector declining by 0.6% inJan-14.

The WPI inflation stood at 4.68% in Feb-14 as compared to 5.05% in Jan-14 and 7.28% inFeb-13.

The aggregate deposit and bank credit grew by 15.8% (y-o-y) and 14.3% (y-o-y)respectively in Feb-14 as against the growth of 12.8% and 16.3% in Feb-13.

The BSE Sensex touched an all-time record high of 21,805.22 (intra-day) on March 10,2014.

Healthcare& Pharmaceutical

E: D&B estimateSource: CSO, D&B Industry Research Service

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

Source: Ministry of Commerce and Industry, CSO

Macroeconomic triad (forecast)

Note: Exchange rate: INR/US$ at month endInterest rate corresponds to yield on T-Bills 15-91 daysSource: D&B Industry Research Service

Source: Ministry of Commerce and Industry

Mar 14

India's exports & imports (US$ bn)

Inflation4.5 - 4.7%

Interest rate8.6 - 8.8%

Exports (LHS) Imports (RHS)

Agriculture Industry Services GDP at factor cost Eight core infrastructure IIP

Exchange rate61.0 - 61.2

-2

-1

0

1

2

3

4

5

6

7

8

9

Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 E

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

25.0

30.0

35.0

40.0

45.0

50.0

15.0

20.0

25.0

30.0

35.0

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14


2/16

Highlights

AUTO COMPONENTS INDUSTRY

Auto Components: Profit margins (%)

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

Auto Components: Key financial indicators


Steel prices (Mumbai) (`/tonne)

Rubber prices* (Kottayam)

(`/quintal)

*Rss-4

HR coils 2.00 mm CR coils 0.63 mm

On account of the slowdown in the automobiles sector, the Indian subsidiary of

the German auto component major Bosch expects its future growth story in

India to come from the rising growth in its non-auto technology business.

Presently, automobile technology segment accounts for 66% of Bosch's sales.

Faridabad-based Elofic Industries Limited, a manufacturer of automotive filter

and lubricants, is expanding its production capacity by setting up a new plant in

Sanand, Gujarat with an investment of `30 crore. The company presently has

manufacturing facilities in Faridabad (Haryana), Hosur (Tamil Nadu) and

Nalagarh (Himachal Pradesh).

Source for all above charts: CMIE

Parameters Units Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14

Net sales `bn 271.7 282.9 282.7 275.7 280.4

y-o-y growth % 0.0 -6.6 -1.5 -0.2 3.2

Operating profit `bn 29.2 35.3 34.6 34.9 34.8

y-o-y growth % 5.3 -2.4 6.5 14.6 19.3

Net profit `bn 10.5 14.9 14.0 14.3 13.5

y-o-y growth % 11.7 -21.9 2.6 16.3 29.0

Operating profit margin % 10.8 12.5 12.2 12.6 12.4

Net profit margin % 3.8 5.2 4.9 5.1 4.7

0

1

2

3

4

5

6

10

10

11

11

12

12

13

13

Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14

Operating margin (LHS) Net margin (RHS)

48000

50000

52000

54000

56000

58000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

14000

16000

18000

20000

22000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14


3/16

Deposits, credit and growth rates

Source for all above charts: RBI

Note: Call rates for Mar-14 are up to Mar 11, 2014

Movement in call money rates (%)

Highlights

BANKING INDUSTRY

Note: Data for Feb-14 is as on Feb 21, 2014

With a view to generate fee-based income, the Small Industries Development

Bank of India (SIDBI) entered into an agreement with the Bahrain Development

Bank (BDB) to provide a broad range of services, including technical assistance in

risk management and credit appraisal, training of staff in SME credit risk

appraisal and related areas, framing a monitoring policy and NPA management

system, to BDB.

With an aim to improve mobilisation of current and savings accounts (CASA)

and augment business growth, ING Vysya Bank plans to expand its branch

network by opening 40-50 branches every year between 2014 and 2016.

State Bank of India reduced its deposit rates for maturities of 3-5 years by 25basis points (bps), and by 50 bps for tenures of five years and above. The bank

further lowered interest rates by 75 bps to 7% for bulk deposits of `10 million

and above with a maturity period of 61 days to less than a year.

State-owned Oriental Bank of Commerce (OBC) hiked its interest rates by 325

bps on term deposits with maturity of 31-45 days. The bank also raised interest

rates by 100 bps on term deposits with maturities between 46 and 90 days and

between 91 and 179 days.

With an aim to have branch strength of 80 by March 2015, the Bharatiya Mahila

Bank announced its plans to open 55 branches in Tier II and III cities and rural

areas during the next financial year.

With a view to extend the coverage of banking services to remote areas in the

state, Canara Bank opened 35 branches in unbanked remote villages across 12

districts of West Bengal.

Deposits (LHS) Credit (LHS)

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

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

Call money rate- High (%)Call money rate- Low (%)

%`bn

Banking: Key financial indicators

Note: Net profit: PAT net of prior period and extraordinary items (P&E)Source: CMIE


Net sales `bn 1,816.6 1,847.1 1,905.3 1,980.6 2,049.3

y-o-y growth % 14.2 10.7 9.4 11.5 12.8

Net profit `bn 196.7 187.4 204.6 134.6 150.0

y-o-y growth % 6.5 -10.3 2.2 -29.0 -23.8


0

2

4

6

8

10

12

14

16

18

20

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

0

5

10

15

20

25

30

35

40

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14


4/16

M&HCV: Domestic sales (Nos.)

Highlights

COMMERCIAL VEHICLE INDUSTRY

In February, domestic sales of commercial vehicles declined by 29.8% at

47,982 units, reflecting lower sales of both medium & heavy commercial

vehicles (-24.0%) and light commercial vehicles (-32.5%).

During April-February FY14, domestic sales of commercial vehicles declined by

19.7%, while exports declined by 8.1%.

In a bid to tap the high-volume multi-axle segment, Tata Motors launched ten

low-priced truck models under the 'Prima' brand. The new range Prima LX,

which includes six heavy trucks for the haulage segment and four for

construction purposes, is around 20% cheaper than the existing Prima range.

Ashok Leyland launched the latest backhoe loader 435E Backhoe Loader, under

its joint venture with construction equipment manufacturer John Deere.

German auto major Daimler is optimistic about its growth prospects in the

trucks business for 2014 as it expects new sales growth to come from emerging

markets such as India. The company plans to use India as an export base for

other markets in Africa and Southeast Asia. It plans to set up a bus

manufacturing unit in Chennai at an investment of `4.25 billion. The unit,

expected to be operational by the second quarter of 2015, will manufacture

1,500 buses annually under both Mercedes-Benz and BharatBenz brands.


LCV: Domestic sales (Nos.)

Commercial vehicle sales (Nos.)

Source: CMIE

Commercial vehicles: Key financial indicators

N.A.: Not applicable (Losses incurred)Note: Operating profit: PBDIT net of prior period and extraordinary items (P&E) & Other income;Net profit: PAT net of P&ESource: CMIE

Segments Feb-13 Feb-14 y-o-y growth (%) Apr-Feb FY13 Apr-Feb FY14 y-o-y growth (%)

M&HCV 21,530 16,372 -24.0 239,098 177,192 -25.9

LCV 46,858 31,610 -32.5 469,157 391,445 -16.6

Total domestic sales 68,388 47,982 -29.84 708,255 568,637 -19.7

Exports 6,372 7,720 21.2 74,169 68,147 -8.1

Total sales 74,760 55,702 -25.5 782,424 636,784 -18.6


Net sales `

bn 136.7 156.0 122.6 120.9 103.7

y-o-y growth % -19.6 -27.9 -14.8 -27.0 -24.1

Operating profit `bn 2.7 3.4 0.2 -1.2 -6.4

y-o-y growth % -73.8 -81.2 -97.0 N.A. N.A.

Net profit `bn -5.2 -4.0 5.7 -10.4 3.8

y-o-y growth % N.A. N.A. 92.4 N.A. N.A.

Operating profit margin % 2.0 2.2 0.2 -1.0 -6.2

Net profit margin % -3.7 -2.5 4.1 -8.5 3.0

10,000

15,000

20,000

25,000

30,000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14


5/16

Highlights

GEMS AND JEWELLERY INDUSTRY

Gold prices in Mumbai market

Gems & jewellery exports (`bn)


Gems & jewellery imports (`bn)

Price (LHS) Change (RHS)

According to the Gems and Jewellery Export Promotion Council (GJEPC), India's

gems and jewellery imports rose by 8% to `151.61 billion in Jan-2014 led by

increase in imports of rough diamonds, while imports of gold bars and jewellery

fell.

Imports of rough diamond increased by 46% (y-o-y) to `78.03 billion and

import of pearls increased significantly to `4.69 billion in Jan-2014 from `20.2

million in Jan-2013. Imports of gold bars fell by 30% (y-o-y) to `28.25 billion.

Imports of gold jewellery declined by 24% (y-o-y) to`4.61 billion and imports of

colour gemstones fell over 79% (y-o-y) to`1.13 billion, while imports of cut and

polished diamonds declined by 2.23% (y-o-y) to `31.80 billion.Gold jewellery exports fell for the tenth consecutive month in Jan-2014,

declining by 23% to`29.93 billion.

Austrian luxury crystals and jewellery maker Swarovski plans to launch more

products specifically designed for the Indian market, open more stores and

strengthen its distribution channel.

Tanishq, part of Titan Company Ltd, launched a new and bigger format

jewellery store in Hyderabad and plans to expand its retail network by another

20 stores this year.

Titan Industries received approval from the Reserve Bank of India to hedge more

gold in the international market which would help the company to save on itsfinance costs and avoid the risk of recording mark-to-market loss. Titan, which

owns the Tanishq brand of jewellery, works under the "goldon-lease" model,

which means Titan leases gold - rather than buying it - from bullion banks.

`/10 gm %

Gems & Jewellery: Key financial indicators

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


Net sales `bn 257.2 311.3 227.4 204.7 181.2

y-o-y growth % 32.9 39.0 23.2 -5.8 -29.5

Operating profit `bn 11.4 6.4 9.7 -2.0 8.7

y-o-y growth % 36.0 -26.3 18.5 -119.9 -23.3

Net profit `bn 6.8 0.6 4.4 -8.7 4.9

y-o-y growth % 55.4 -88.5 -16.0 -245.6 -27.9

Operating profit margin % 4.4 2.1 4.3 -1.0 4.8

Net profit margin % 2.6 0.2 1.9 -4.2 2.7

-10

-8

-6

-4

-2

0

2

4

6

8

24000

25000

26000

27000

28000

29000

30000

31000

32000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

0

50

100

150

200

250

300

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

0

100

200

300

400

500

600

700

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13


6/16

Highlights

HEALTHCARE & PHARMACEUTICAL INDUSTRY

The Union Health Ministry is examining the recommendations of the standingcommittee on the Drugs and Cosmetics (Amendment) Bill, 2013. The Billproposes changes in the regulation of the import, export, manufacture,distribution and sale of drugs, cosmetics and medical devices, includingmeasures to ensure product safety, efficacy and quality in clinical trials.

Shasun Pharmaceuticals signed a joint venture agreement with SeQuent todevelop, manufacture and sell veterinary products including both API (activepharmaceutical ingredients) and formulations to cater to the global market.

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal ofGlaxoSmithKline Pte Limited, Singapore for acquisition of 24.33% share in

existing Indian subsidiary company of GSK Group.Lupin Ltd is set to expand its Vadodara facility to make bulk drugs for cardiac,anti-infectives, anti-tuberculosis, neurology and other segments at an estimatedproject cost of around`2.70 billion.

Strand Lifesciences received a US patent for virtual liver, which would aid thepharmaceutical industry in understanding liver-related issues. A virtual liverwould help in predicting and assessing hepatotoxicity of novel drug compoundsin pre-clinical studies and would also help the pharmaceutical industry.

University of Hyderabad, in collaboration with National institute of Nutrition andIKP Knowledge Park in Hyderabad successfully completed pre-clinical studies fortemozolomide, an anti-cancer drug in animal models.

Bengaluru-based InnAccel, with an intention to help incubate medical deviceand diagnostic start-ups, is creating an eco-system to design and develop noveldevices. It has instituted a six month fellowship programme on AffordableInnovation in Medical Technology (AIM) for promising qualified engineers andproduct designers to get trained in medtech innovation and entrepreneurship.The company recently bagged a license for technology transfer from the BiotechConsortium of India Limited for the production of 'Noxeno', a device for nasalforeign body removal.

Trend in Drugs andPharmaceuticals export

Source: CMIE

%`bn

Value (LHS) Growth (RHS)

Dr Reddy's Laboratories Ltd launched Moxifloxacin Hydrochloride tablets in theUS market for the treatment of a wide range of diseases, including pneumonia,bronchitis and skin infections.

OPKO Diagnostics, a division of OPKO Health Inc and Sony DADC signed asupply agreement for high volume production of a key component of the OPKOSangia microfluidic cassette. The Sangia cassettes are designed to performquantitative immunoassays from a finger-stick blood sample on the Claros in-office analyzer.

Global News


Net sales `bn 254.9 249.7 253.6 275.6 278.2

y-o-y growth % -1.6 2.0 5.0 7.6 9.1


y-o-y growth % 238.2 -13.2 19.8 -4.6 11.9

Net profit `bn 20.9 19.2 17.6 27.9 59.7

y-o-y growth % N.A. -44.7 60.6 -25.4 185.9



Pharmaceuticals: Key financial indicators

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

0

5

10

15

20

25

30

35

0

10

20

30

40

50

60

70

80

90

Dec-12

Jan-13

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May-13

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Dec-13


7/16

Highlights

HI-TECH INDUSTRY

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

Civil aviation: Load factor (%)

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

Passenger load factor Weight load factor

The Ministry of Civil Aviation plans to move a Cabinet note through which itseeks to amend the current '5-year/20 aircraft' norm that requires domesticairlines to be in operation for at least five years and operate a fleet of minimum20 aircrafts to be eligible to fly to international cities.

The Ministry of Civil Aviation approved the proposal to separate the air trafficcontrol services from the Airports Authority of India (AAI) into a separate entitynamed Air Navigation Services Corporation (ANSC). With this spin-off, AAI isexpected to hike landing and parking charges for airlines, which could force theairlines to raise their airfares.

As part of its plans to develop airports in Tier-II and Tier-III cities with a view to

extend air connectivity to regional areas, the Government of Uttar Pradeshsigned a memorandum of understanding with AAI under which AAI woulddevelop airports at Meerut, Moradabad, Faizabad and new civil enclaves in theIAF airports at Agra, Allahabad, Bareilly and Kanpur.

SpiceJet Ltd signed a deal with The Boeing Company to purchase 42 Boeing 737MAX jets for about US$ 4.4 billion. Through this deal, SpiceJet seeks to revive itsprofitability by expanding its fleet with fuel-efficient planes.

After completing its ongoing expansion in Pune during May 2015, Haier Indiaplans to set up a new plant in northern India with an investment of `one billionto manufacture washing machines and air conditioners.


Civil aviation: Airport traffic statistics (December 2013)

Source: CMIE

Air transport services: Key financial indicators

N.A.: Not applicable (Losses incurred)Note: Net profit: PAT net of prior period and extraordinary items (P&E)Source: CMIE

Parameters

Aircraft traffic Passenger traffic Cargo traffic

Nos.y-o-y

growth (%)Nos.

y-o-ygrowth (%)

Tonnesy-o-y

growth (%)

Domestic traffic 103,617 6.3 11,113,627 4.1 73,965 10.4

International traffic 29,397 4.4 4,259,484 4.6 118,353 4.5

Total airport traffic 133,014 5.9 15,373,111 4.3 192,318 6.7


Net sales `mn 34,225.5 33,652.2 33,930.1 35,433.4 35,858.9

y-o-y growth % 1.1 -0.1 0.2 4.9 4.8

Operating profit `mn 5,374.9 3,997.0 5,238.5 5,687.8 5,574.4

y-o-y growth % 10.0 -23.8 -1.8 5.1 3.7

Net profit `mn -133.1 -2,690.8 -84.2 56.4 37.7

y-o-y growth % N.A. N.A. N.A. N.A. N.A.


Net profit margin % -0.4 -7.9 -0.2 0.2 0.1


Net sales `bn 58.7 54.5 57.8 55.3 64.3

y-o-y growth % -10.5 -9.1 -9.5 -1.0 9.6

Net profit `bn -2.9 -28.0 -10.5 -20.3 -8.8


Net profit margin % -4.9 -49.4 -17.8 -36.1 -13.3

Consumer Electronics: Key financial indicators

N.A.: Not applicable (Losses incurred)Note: Operating profit: PBDIT net of prior period and extraordinary items (P&E) & other income;Net profit: PAT net of P&ESource: CMIE

0.0

0.5

1.0

1.5

2.0

8,600

8,800

9,000

9,200

9,400

9,600

9,800

10,000

10,200

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

0

20

40

60

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140

160

Dec-12

Jan-13

Feb-13

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Apr-13

May-13

Jun-13

Jul-13

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Sep-13

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Nov-13

Dec-13


8/16

Highlights

HOSPITALITY INDUSTRY

Foreign tourist arrivals in India('000 nos.)

Source for all above charts: Ministry of Tourism

Foreign exchange earnings

Foreign Exchange Earnings (LHS)Growth rate (RHS)

Choice Hotels India, a lodging franchiser, plans to add 3-4 hotels by the end of

this year to increase its room capacity to 3,000 in the country, from the current

capacity of 2,200 rooms. The company, which is a wholly-owned subsidiary of

Choice Hotels International, also intends to add another 10 hotels, presently

under construction, in the next 2-3 years.

Boutique hotel company Garcha, owned and operated by Satinder Garcha of

Singapore, plans to invest approximately US$ 100 million for a 200-key

boutique hotel.

Maharashtra-based Kamat Hotels (India) Ltd, engaged in hospitality and allied

businesses, is targeting tier II cities in the South for expansion. It is focused onexpanding its base through the franchisee route under the VITS brand.

Hilton Worldwide and DoubleTree by Hilton announced the signing of a merger

agreement with Archer Hospitality Private Limited for DoubleTree by Hilton

Agra, a 104-room property, which is scheduled to open in August this year.

`bn %

Source: CMIE

N.A.: Not applicable (Losses incurred)Note: Net profit: PAT net of prior period and extraordinary itemsSource: CMIE

Hospitality: Key financial indicators


Net sales `bn 24.1 25.0 21.0 19.9 25.2

y-o-y growth % 7.7 5.3 5.3 7.5 4.6

Net profit `bn 1.1 0.7 -0.2 -1.6 -1.3

y-o-y growth % -10.5 189.8 N.A. N.A. N.A.

Net profit margin % 4.5 2.6 -0.8 -7.6 -5.1

0

100

200

300

400

500

600

700

800

900

Feb-13

Mar-13

Apr-13

May-13

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Jan-14

Feb-14

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5

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7080

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Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

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Oct-13

Nov-13

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Jan-14

Feb-14

Growth in foreign tourist arrivals (%)

2011 2012 2013 2014

0

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4

6

8

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


9/16

Highlights

Domestic computer hardware& peripheral production (`bn)

IT HARDWARE INDUSTRY

Advanced Micro Devices Inc (AMD), a US-based global semiconductor chip

manufacturer, introduced its AM1 platform, which comprises the AMD quad-

core and dual-core 'Kabini' APU into the component channel for system

builders.

The Lenovo Group launched its new IdeaPad Z510, a premium multi-media

notebook that features the fourth generation Intel Haswell Core i5 or Core i7

processors, NVIDIA graphics solution and an integrated DVD drive. Pricing of theIdeaPad Z510 is expected to start from `52,954 onwards.

ASUSTeK Computer Inc (ASUS) launched its two new entry-level motherboards,

the H81M-K and B85M-K, which are based on Intel H81 and Intel B85 chipset,

respectively. The H81M-K and B85M-K motherboards are priced at `4,400 and

`5,350 respectively.

Global News

With an aim to increase its market share in the A4 printer segment, Konica

Minolta Business Solutions announced plans to expand its range of A4 printers

and introduced its new printer, Pagepro1589MF.

Kingston Technology Corporation, California-based independent manufacturer

of memory products, launched its new memory drive 'DataTraveler microDuo'

in India. The microDuo is a combination of USB and microUSB flash drive that

aims at expanding the storage of Android tablets and smartphones with on-the-

go functionality.

NETGEAR Inc announced the launch of its new multi-purpose Wi-Fi travel

router, the NETGEAR TrekN300, in India. This router is developed to enableinstant access of any public Internet connection to users.

Source: CMIE

IT-hardware: Key financial indicators

N.A.: Not applicable (Losses incurred)Note: Operating profit: PBDIT net of prior period and extraordinary items (P&E) & Other income;Net profit: PAT net of P&ESource: CMIE


Net sales `mn 4,502.5 4,464.9 4,899.6 4,678.2 4,819.1

y-o-y growth % -40.8 -37.8 -21.7 -23.7 7.0

Operating profit `mn -532.9 -829.5 15.0 -611.8 -1,157.6

y-o-y growth % N.A. N.A. -84.2 N.A. N.A.

Net profit `mn -1,704.9 -1,377.9 -728.2 -1,548.6 -2,125.5


Operating profit margin % -11.8 -18.6 0.3 -13.1 -24.0

Net profit margin % -35.4 -28.8 -13.6 -31.0 -42.2

3.2

1.81.9

3.8

1.7

2.0

3.3

1.9

2.42.7

1.71.7

2.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13


10/16

Highlights

LOGISTICS & SUPPLY CHAIN INDUSTRY

Delhi-based agri-logistics company Sohan Lal Commodity Management Private

Limited acquired Chennai-based NBFC B P Jain Finance & Investment. This marks

the company's entry into agricultural financing. Sohan Lal Commodity

Management plans to infuse `50 crore into the NBFC for the latter to provide

financing of warehousing receipts.

India Value Fund acquired National Bulk Handling Corporation Limited, the

warehousing subsidiary of the FTIL Group for a consideration of `three crore.

The divestment of stake by the FTIL Group is part of its strategy to sell off its

non-core assets.

Ahlers India, a subsidiary of Belgium-based logistics group Ahlers, which hasbeen present in India since 10 years, is looking at increasing thrust on chemical

logistics trade, as it looks to double its turnover by 2018 as compared to its

present turnover of about`1.1 billion.

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

Logistics & supply chain*: Key financial indicators

US freight forwarder Roadrunner Transportation Systems announced the

acquisition of Arkansas-based Rich Logistics, a provider of trucking and

expedited services, for a consideration of US$ 48 million.

Menlo Logistics LLC, a global provider of logistics, transportation management

and supply chain services, announced a new partnership with Starbucks Corp toprovide warehousing, inventory and transportation management services for

Starbucks' chilled, frozen, air-conditioned and ambient products from a new

warehouse located in Bangkok.

UPS formed a strategic collaboration with Jabil Circuit Inc, as per which UPS'

logistics and distribution business unit and Jabil Aftermarket Services will

provide optimised reverse logistics solutions for return and repair programs to

high-tech original equipment manufacturers, service providers and enterprises

on a global scale. Jabil is an electronic product solutions company providing

electronics design, manufacturing and aftermarket product management

services to global electronics and technology companies.

Global News


Net sales `bn 29.0 29.9 29.2 29.3 29.7

y-o-y growth % -2.5 -1.6 4.2 3.0 2.3

Net profit `bn 3.4 2.5 2.8 2.4 2.4

y-o-y growth % -5.1 -26.4 -36.3 -32.4 -31.0



11/16

PASSENGER VEHICLE INDUSTRY

Highlights

Utility vehicles: Domestic sales(Nos.)

Passenger cars: Domestic sales(Nos.)


The decline in sales of passenger vehicles continued into February, with

domestic sales of passenger cars (incl. vans) declining by 2.5% at 174,242 units

and those of multi-utility vehicles (MUVs) falling by 9.1% at 43,507 units.

During April-February FY14, domestic sales of passenger vehicles recorded a

decline of 5.9% (y-o-y) at 2.27 million units. Exports grew by 6.4% at 540,246

units during this period.

Several passenger vehicle manufacturers slashed prices of their vehicles, a

fallout of the reduction in excise duty rates announced in the Interim Budget

recently. While Maruti Suzuki India cut prices by ` 8,502-30,984 across its

models, Hyundai slashed prices by `10,000-135,300. Tata Motors and FordIndia announced price cuts of up to `1.5 lakh and `1.07 lakh, respectively,

across their product portfolio.

Japanese carmaker Honda Motors plans to set up a subsidiary in India that

would work towards developing cars for the local market and increasing the use

of locally-made components in its existing vehicles, with an aim to make them

more affordable. The facility, Honda Genbetsu India would focus on research

and development, and is expected to come up at an initial investment of around

`five billion.

Utility vehicle manufacturer Mahindra & Mahindra Ltd launched its electric car

e2o in Bhutan. The company also signed an MoU with the Bhutan Government

to promote electric cars in the country. According to the MoU, the companyplans to establish infrastructure such as setting up of service stations for

swappable batteries for e2o customers. M&M is also looking at other

neighbouring countries including Sri Lanka and Nepal, and Europe to drive

growth of its electric vehicles business going ahead.

Super luxury carmaker Rolls-Royce launched a limited edition of its model Ghost

in India, at a price of `4.66 crore. General Motors India launched limited edition

versions of its Chevrolet Sail hatchback and sedan, priced between `4.21 lakh

and`7.45 lakh (ex-showroom, New Delhi).

Fiat India launched an updated version of its Linea sedan, priced between

`6.99 lakh and `9.72 lakh (ex-showroom Delhi).

Passenger vehicle sales (Nos)

Source: CMIE

0

50000

100000

150000

200000

250000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

0

10000

20000

30000

40000

50000

60000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Segments Feb-13 Feb-14y-o-y growth

(%)Apr-Feb

FY13Apr-Feb

FY14y-o-y growth

(%)

Micro 1,505 2,496 65.8 52,341 18,677 -64.3

Mini & Compact 116,894 121,213 3.7 1,235,104 1,227,932 -0.6

Super Compact and Mid Size 38,477 35,587 -7.5 380,699 350,087 -8.0

Executive 1,341 1,146 -14.5 21,346 16,447 -23.0

Premium 295 275 -6.8 3,888 2,266 -41.7

Luxury, Coupe Roadster & Exotics 0 1 - 2 1 -50.0

Vans 20,112 13,524 -32.8 214,860 175,535 -18.3

Passenger cars 178,624 174,242 -2.5 1,908,240 1,790,945 -6.1

Multi-utility vehicles 47,859 43,507 -9.1 499,796 474,699 -5.0

Domestic sales 226,483 217,749 -3.9 2,408,036 2,265,644 -5.9

Exports 48,353 48,364 0.0 507,564 540,246 6.4

Total sales 274,836 266,113 -3.2 2,915,600 2,805,890 -3.8


12/16

Highlights

RETAIL INDUSTRY

Delhi-based lifestyle portal Jabong.com plans to launch ethnic womenswearcollection designed exclusively for it by well-known designer Rohit Bal, besidesother in-house brands covering apparel, shoes and accessories by Apr-14.

Hindware Home Retail Private Ltd (HHRPL), a 100% subsidiary of HindwareSanitaryware Collection, a leading manufacturer of sanitaryware products andthe flagship company of the Somany Group plans to make a foray into e-commerce by the second quarter of 2014-15, to further expand its reach.

Bengaluru-based Unilog Content Solutions entered luxury retail through a newcompany Fervour. Fervour plans to start its operations from a multi-brand retailoutlet in Bengaluru, strengthen its presence in southern cities like Chennai and

Hyderabad over the next three years and then expand its presence in marketslike Mumbai, Delhi and Kolkata. Fervour intends to sell luxury brands such asNina Ricci, DSquared2, Iceberg and Frankie Morello through a licensingagreement.

Montblanc entered into a partnership with Titan Industries in a 51:49 jointventure and plans to enhance the luxury experience to customers in India.

Bengaluru-based online fashion retailer Myntra plans to allow local stores andboutiques to sell their products on a new marketplace which it plans to launchby Apr-14. Myntra is likely to sell local and boutique brands through thismarketplace.

Amazon plans to use its own logistics network to deliver nearly every productsold on its Indian portal in the next two years.

Spencer's Retail Limited plans to open 100 hypermarkets (retail stores) acrossIndia by 2017. The company opened its 32nd hypermarket in Bhopal and plansto open two more hypermarkets before the end of the financial year.

Louis Vuitton-owned Sephora plans to open seven stores in India by the end ofthis year.While Delhi would continue to be of prime focus for Sephora, the othercities considered for expansion are Pune and Hyderabad. Currently, Sephoraoperates two stores in Delhi.

Blumerq, a brand for hi-fashion casual menswear, plans to add 270 retail pointsin tier 1 and tier II cities across India. Out of the 270, 10 will be exclusive brandoutlets, while 260 will be multi-brand outlets. The planned expansion will followboth the franchise and COCO (company owned company operated) model.Hi-fashion casual menswear brand Blumerq also plans to soon launch

accessories like leather belts, wallets, wrist bands, etc, apart from having its owne-commerce platform.

Tirupur-based Dixcy Scott outlined its plan to launch a chain of exclusive brandoutlets across the country. At present, its products are available in multi-brandretail outlets. The brand launched two outlets in Bhubaneshwar and Surat andplans to open half a dozen outlets in the southern states in the next few monthsand then get into big format stores.

Retail: Key financial indicators


Net sales `million 29,237.8 24,826.8 16,794.7 20,952.0 39,198.2

y-o-y growth % 30.5 10.9 -23.8 -25.5 34.1

Net profit `million 349.0 -669.9 -597.3 -474.8 389.3

y-o-y growth % -8.9 N.A. N.A. N.A. N.A.

PAT margin % 1.2 -2.7 -3.5 -2.2 1.0

Note: Net profit: PAT net of prior period and extraordinary itemsN.A.: Not applicable (losses incurred)Source: CMIE


13/16

Highlights

Trend in HRC and CRCprices-Mumbai (`/tonne)

Finished steel consumption

STEEL INDUSTRY

Consumption (LHS) Growth (RHS)

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

Shree Uttam Steel and Power Ltd signed a memorandum of understanding withthe Government of Maharashtra for setting up a steel manufacturing facilityand a captive power plant at an estimated cost of `111.56 billion. The projectinvolves a steel unit with a capacity to produce 1.5 million tonne per annum(mtpa) of hot rolled coils along with a 40 MW captive power plant atSindhudurg, Maharashtra.

JSW Steel acquired a 50% stake in Punjab-based Vallabh Tinplate for`460 million.

SAIL plans to invest ` 90 billion on expansion and modernisation at fiveintegrated plants during FY15, 22% lower than the investment incurred

during FY14. In FY15, it plans to allocate `29.60 billion to the Bhilai plant(Madhya Pradesh), `17.90 billion to the Rourkela plant (Odisha), `12.44 billionto Burnpur unit and`6.42 billion to the Bokaro unit in West Bengal.

SAIL and KIOCL plan to ink a joint venture partnership for setting up a three lakhtonne coke oven battery and a captive power plant at an estimated investmentof`4.5 billion in Karnataka.

Jindal Steel and Power Ltd launched its new retail brand Jindal Panther TMTrebars. The new generation premium quality ribbed Thermo MechanicallyTreated (TMT) Rebars have a higher degree of strength and ductibilty.

The Kalyan Banerjee-headed Parliamentary Standing Committee on Steel andCoal in its latest report has asked the Steel Authority of India to explore thepossibility of opening international marketing offices in order to increase its

presence in the global market.

Rashtriya Ispat Nigam decided to increase the prices of various products by`750- 1,000 per tonne with effective from March 1, 2014 to tide over theincreased iron ore costs and freight charges. JSW Steel announced a hike of`750 a tonne across product categories from Apr-14.


'000 Tonnes %

Tata Steel is likely to enhance its research and development programme in theUK to develop new materials and applications to help customers as it hasreceived a Regional Growth Fund from the British Government to the tune ofPounds eight million.

ArcelorMittal, along with Nippon Steel and Sumitomo Metal Corporation,completed acquisition of US-based ThyssenKrupp AG's steel mill in Calvert,Alabama for US$ 1.55 billion. The steel mill has a steel processing capacity of 5.3mtpa including hot rolling, cold rolling, coating and finishing lines.

Global News

Steel: Key financial indicators


Net sales `bn 443.6 488.6 419.8 457.0 471.2

y-o-y growth % 4.6 -3.2 -9.0 1.6 6.2


y-o-y growth % 1.8 -16.6 -13.5 -4.1 29.4

Net profit `bn 10.8 22.1 9.2 12.0 21.7

y-o-y growth % -36.4 -37.6 -63.3 -51.0 102.1



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

47,000

48,000

49,000

50,000

51,000

52,000

53,000

54,000

55,000

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

-40

-35

-30

-25

-20

-15-10

-5

0

5

10

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14


14/16

Highlights

With an aim to upgrade old handlooms in the industry, the Governmentof Maharashtra announced its intention to provide a financial assistance of

` 10,000 per handloom to weavers, which is in addition to the Central

Government's subsidy of`15,000 per handloom.

The Government of Maharashtra received 1,331 projects under the new textile

policy with investment of`120 billion.

Suiting fabrics manufacturer Raymond Ltd partnered with Australia-basedWoolmark Company to launch a complete all-weather premium cool woolcollection in India. The price of the new premium cool wool range is expected to

start from`

1,500 per meter.As part of its plans to modernise two manufacturing units in Gujarat, Mafatlal

Industries intends to invest an additional amount of `two billion in its Nadiadand Navsari units during the next three years.

The weavers of Patan patola sarees from Patan district of Gujarat received theGeographic Indication (GI) certification in order to safeguard their creationsfrom imitations and to ensure that no weavers from elsewhere can call theirikats as Patan Patolas.

Fabrics production(Million sq.metres)

Spun yarn production('000 tonnes)

TEXTILE & GARMENT INDUSTRY


4600

4800

5000

5200

5400

5600

5800

6000

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Prices of Shankar-6 variety of cotton in Kadi (`/kg)

Source: CMIE

Textiles & Garments: Key financial indicators

N.A.: Not applicable (Losses incurred)Note: Operating profit: PBDIT net of prior period and extraordinary items (P&E) & other income;Net profit: PAT net of P&E

Source: CMIE


Net sales `bn 353.9 387.1 348.4 386.7 376.7

y-o-y growth % 13.5 11.3 6.4 10.0 6.4


y-o-y growth % 52.4 19.8 1.1 3.9 -4.9

Net profit `bn 7.0 7.5 -1.5 5.6 4.7

y-o-y growth % 6,621.6 10.6 N.A. -50.7 -32.8


Net profit margin % 2.0 1.9 -0.4 1.4 1.2

370

380

390

400

410

420

430

440

450

460

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13 0

20

40

60

80

100

120

140

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14


15/16

Three-wheeler: Domestic sales(Nos.)

Two-wheeler: Domestic sales(Million)

Highlights

TWO-WHEELER AND THREE-WHEELER INDUSTRY

Source for above charts: CMIE

In February, domestic sales of two-wheelers grew by 9.7% (y-o-y) at 1.22 millionunits. While sales of motorcycles and scooters recorded y-o-y growth of 5.4%and 28.2% respectively, sales of mopeds fell by 5.8%.

During April-February FY14, domestic sales of two-wheelers grew by 6.1% at13.47 million units, whereas exports grew by 5.4% at 1.9 million units.

In line with its strategy of using Turkey as its base to make a foray into theEuropean two-wheeler market, Hero MotoCorp Ltd entered into a distributionagreement with Asya Makina, a subsidiary of Soysal Group, to distribute its two-wheelers through Asya Makina's network of 50 outlets in Turkey.

In order to focus more on its core business and lessen its debt burden, KineticEngineering Ltd divested its 10.36% stake in Mahindra Two Wheelers Ltd toSamena Capital, a private equity investment group company, for about `1.82billion.

Miami-based UM Global announced its plans to enter the Indian two-wheelermarket. The company intends to assemble its sports bikes in India by sourcing atleast half of the components locally in order to keep its prices lower forcompeting with companies like Royal Enfield and Bajaj Auto.

In order to pass on the benefits of excise duty cut announced in the InterimBudget for FY15, two-wheeler makers such as TVS Motor Company, HeroMotoCorp, Honda Motorcycle & Scooter India and DSK Hyosung slashed theirproduct prices by up to`3,500,`4,500,`7,600 and`20,000, respectively.

In February, domestic sales of three-wheelers dropped by 14.0%, reflecting thedrop in sales of passenger carriers (17.1%) and goods carriers (1.1%). However,exports of three-wheelers grew by 16.4% at 326,790 units during April-February FY14.

Two-wheeler sales Three-wheeler sales

Source: CMIE

Segments

Feb-14 Apr-Feb FY14

Vol (Nos)y-o-y

growth(%)

Vol (Nos)y-o-y

growth(%)

Motorcycles 843,307 5.4 9,573,152 2.9

Mopeds 64,748 -5.8 651,604 -9.2

Scooters 311,957 28.2 3,246,511 21.4Total domestic 1,220,012 9.7 13,471,267 6.1

Exports 180,946 6.7 1,903,797 5.4

Total 1,400,958 9.3 15,375,064 6.0

Segments

Feb-14 Apr-Feb FY14

Vol(Nos)

y-o-ygrowth

(%)Vol (Nos)

y-o-ygrowth

(%)

Passenger carriers 29,504 -17.1 353,489 -13.0

Goods carriers 8,446 -1.1 85,227 -3.5

Total domestic 37,950 -14.0 438,716 -11.3

Exports 33,080 20.2 326,790 16.4

Total 71,030 -0.9 765,506 -1.3


Net sales `bn 139.3 132.2 133.9 135.7 148.4

y-o-y growth % 5.6 3.6 -0.1 10.0 6.6


y-o-y growth % -3.7 -6.7 1.2 22.4 12.8

Net profit `bn 13.8 14.8 13.7 14.3 15.8

y-o-y growth % -9.2 1.6 -2.4 15.3 14.4



Two & Three Wheelers: Key financial indicators


0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

0

10000

20000

30000

40000

50000

60000

Feb-13

Mar-13

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Jul-13

Aug-13

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Jan-14

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16/16

industry cursor march 2014

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