...ASSESSMENT OF COMPETITION IN CEMENT INDUSTRY IN INDIA RESEARCH PROJECT REPORT SUBMITTED TO THE COMPETITION COMMISSION OF INDIA SUBMITTED BY: SUMIT PAL SINGH MBA (2011-2013) VINOD GUPTA SCHOOL OF MANAGEMENT, IIT KHARAGPUR i ACKNOWLEDGMENT I extend my sincere gratitude to The Competition Commission of India, for giving me an opportunity to intern at the commission. In specific, I thank Mr. Rakesh Kumar, Joint Director (Eco) for being a guiding force throughout this submission and being instrumental in the successful completion of this project. Without him every effort of mine would have been in vain. He has been kind and patient throughout, to share with me his precious time, thoughts and insights. Sumit Pal Singh Vinod Gupta School of Management, IIT Kharagpur ii DISCLAIMER This project report/dissertation has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for academic purposes only. The views expressed in the report are personal to the intern and do not reflect the view of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. iii TABLE OF CONTENTS 1. INTRODUCTION ..........................................................
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...27 March 2012 India Tractors The growth story continues continues…. Mayur Milak (+91 22 ) 4096 9749 mayurm@dolatcapital.com mayurm@dolatcapital com 1 Executive summary Why did we do a follow-up report on tractors NOW ? The tractor industry has grown at a CAGR of ~12% during last five years. After a splendid performance, during the last two to three years, the Indian tractor industry is believed to head for a slow-down , we believe otherwise and hence our stance to b buy i into tractor at this j hi juncture. Our takeaways: There is an increasing lack of cheap farm labour due to migration to urban areas, leading to more mechanisation. Further, f F h farm i income h has grown at a CAGR of 12 8% d i f 12.8% during l last fi five years. W expect this growth to sustain going We hi h i i forward, which will continue to boost tractor sales. Contrary to popular belief, rainfall does not affect tractor sales directly. Other factors such as higher farm income, availability of water (irrigation facilities), cheaper and more easily available finance, successful implementation of government schemes (NREGA) and higher MSP are the key drivers for growth in tractor sales. We expect tractor demand to grow by 11-12%, going forward. All key drivers are in place and adequate availability of water is expected with a forecast of regular and timely rainfall. Our top-pick: M&M top pick: M&M has always been a leader in the farm equipment sector. After acquiring Punjab Tractors Limited (PTL), it...
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...Abstract: “Raising taxes is one of our strongest weapons to fight out tobacco,” said Arun Thapa, Acting WHO Representative to India. Hiking tobacco taxes by 320% between 1996 and 2013 helped the US reduce its per capita annual consumption of cigarettes from 1820 to 893 cigarettes, and cut the number of adults who smoke by about a third. In India, central-excise duty has increased 1606% on the shortest non-filter cigarettes available and 198% on the shortest filter cigarettes since 1996. Taxes constitute about 60% of the price of a best-selling pack of 20 cigarettes, against about 43% in the US. But India was not able to reduce its capita annual consumption of cigarettes in the same proportion. Cigarette smokers in India increased from 25 million to 46.4 million over 14 years (1996 to 2010), and per capita annual consumption of cigarettes declined marginally, from 101 to 96 cigarettes over the same period. With some assumptions, it can be shown that the tax on bidis can be increased to Rs. 100 per 1000 sticks compared with the current Rs. 14 and the tax on an average cigarette can be increased to Rs. 3.5 per stick without any fear of losing revenue. The government though has been taking rigorous initiatives to try and reduce the consumption of tobacco products it has not been able to achieve the results which it wanted to have. There have been many reasons for this to happen and we will look into it in this report. Introduction:- In India, tobacco consumption...
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...Data Analysis and Interpretation: In this report we have focused on the public sector banks i.e. the nationalized banks and SBI and its associates. We have collated the data for these two groups of banks and used them as one. We can consider multiple output and input measures, which are in particular applicable to the Indian Banking industry. However for this case we have considered output as deposits and inputs as capital and labour costs. Following this approach, we have defined output as the rupee value of total deposits at the end of the year. We have measured labour by the number of employees which comprises of all the employees viz., officers and other employees i.e., clerks and sub staff. Capital input is a crucial input in the production process and it is the most complex of all the inputs to measure and has been taken as the value of the net fixed assets of the banks. We already have the formula for Cobb-Douglas production function: F (K, L) = A.Kα.Lβ Here K represents capital, L represents labour and A, α, β are Positive constants. In order to calculate the value of A, α, β we need to convert this equation into a linear one. Taking the natural logarithm of both the sides we get, logeF = logeA + α logeK+ β logeL Where logeF = Y, logeA = C, logeK = x1, logeL = x2, α= A, β= B Now we plot the multiple regression line for the variables F, K and L through the data obtained for the public sector banks over the range of years , and we obtain the values for the...
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...A Study of Impact of RBI policy rates on inflation *Prof. Pallavi Ingale Introduction The Reserve Bank of India (RBI) is the Indian central bank. The RBI’s most important goal is to maintain monetary stability - moderate and stable inflation in India. The RBI uses monetary policy to maintain price stability and an adequate flow of credit. Rates which the Indian central bank uses for this are the bank rate, repo rate, reverse repo rate and the cash reserve ratio. The Reserve Bank of India (RBI) raised repo and reverse repo rates 13 times in previous year. RBI also deregulated savings bank deposit rate with immediate effect. This step was taken to arrest rising inflation in Asia's third largest economy. But this RBI's decision to hike short-term lending and borrowing rates could lead to higher interest rates and impact the growth momentum of the economy. An Indian company has postponed expansion plans and review future profitability projections after the Reserve Bank of India raised key interest rates. The central bank also revised the GDP growth rate for FY11-12 to 7.6% from the earlier 8%, while the projection of WPI inflation has been kept unchanged at 7% for March 2012. Reserve Bank of India (RBI) The Reserve Bank of India was inaugurated as on April 1 1935. Originally, the Reserve Bank was constituted as a shareholders’ bank based on the model leading foreign central banks on that time. The bank ‘s fully paid share capital was Rs. 5 Crores divided into shares of Rs. 100 each...
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...SCMHRD The Future of the Power Sector An Analysis Tushar Alva Roll No-2009A06 Executive Summary The electricity sector in India is predominantly controlled by Government of India's public sector undertakings (PSUs) but the private sector is also catching up fast. India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per capita power consumption stood at 612 kWH. The country's annual power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH in 2006. India faces a serious shortfall in power generation. During the tenth plan, only 23,000 MW of capacity was added against the original target of 41,000 MW. During the 11th plan, a target of 78,000 MW has been set. Anil Kakodkar, Chairman, Atomic Energy Commission, India had estimated that the per capita electricity generation would reach about 5300 kWh per year in the year 2052 and total about 8000 TWh. The Government of India has an ambitious mission of „POWER FOR ALL‟ BY 2012. This mission would require that the installed generation capacity should be at least 200,000 MW by 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to 400,000MW. The ratio of energy generation and GDP growth...
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...Shortlisting Companies for Detailed Analysis This article is a part of the series of articles "Selecting Top Stocks to Buy". In the first article of this series (Getting right perspective towards Investing), we discussed about getting the right perspective towards stock investing and the requisite qualities for becoming a successful investor. In the second article of this series(Choosing the Stock Picking Approach suitable to you), we learned about different stock picking approaches available to an investor and the guidelines for selecting the stock picking approach suitable to her. The current article in this series, aims to highlight the necessity of shortlisting a few companies for detailed analysis, out of the thousands of companies available to an investor. We would also learn about various tools, which an investor can use for shortlisting these companies. As per Bombay Stock Exchange website, at September 14, 2014, there are 5,471 stocks available for investing. Each of these stocks represents a company running a unique business. Business of each of these companies is different from all the other companies whether they are from the same or different industries. For example, a pharmaceutical company will have a business entirely different from a telecom company. Moreover, within the pharmaceutical companies, a company selling its products in Indian market will have a very different business from another company, which sells its products in overseas markets...
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...Term Project ON Euro Crisis: Origin, consequences and impact on world and Indian economy Submitted By: Ajay Sharma 2011SMF6623 Nitesh Goyal 2011SMF66 Sajal Agarwal 2011SMF66 Contents Description | Page No. | | | | | | | | | | | | | | | | | | | | | | | Impact on India | | Impact of FDI in India | | Snapshot of impact on India | | Conclusion | | References | | Impact on India Though India is primarily a domestic economy, India’s exports are positively linked to the global economic growth. This is likely to adversely impact India’s export growth in the coming months. However, growth will be only marginally affected by the slowdown in the euro region debt stricken countries as our exposure is low. Software services and other export oriented sectors would benefit from the rupee depreciation. FDI has not been significantly affected by the crisis while the FIIs are showing outflow in the last couple of months. International commodity price moderation is not being translated in domestic prices. Inflationary Concerns: Further, exchange rate depreciation would worsen the inflationary conditions in the economy. Therefore, the RBI would have to continue with its anti-inflationary stance in the near term if domestic conditions do not improve Source: World Bank, Ministry of Commerce, Government of India Interpretation of Graph - Graph 1 show that the share of the euro zone exports...
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...Financial Performance Measurement of SBI Groups – An Empirical Study (Synopsis) Prasanta Saha Purash-Kanpur Haridas Nandi Mahavidyalaya, Howrah Introduction: Why you choose SBI? You have to clarify it in a paragraph. The Imperial Bank was established in 1921 by amalgamation of three presidency banks – the Bank of Bengal, the Bank of Bombay and the Bank of Madras under a special legislation. These presidency banks were created as a charter to deal in bill of exchange payable in British India and were an integral part of Indian treasury. The Imperial Bank acted as a banker of the government until the establishment of Reserve Bank of India in 1935. State Bank of India was formed on July 1, 1955 by nationalizing the Imperial Bank under the State Bank of India Act, 1955 which was passed in parliament on May 8, 1955. The main objective of nationalization was not only extending banking facilities to rural and semi-urban areas in the newly formed independent India but also to promote agricultural finance and help the government to pursue the board economic policies. Initially 60% stake in SBI was taken over by the Reserve Bank of India but the controlling interest has been transferred to the Government of India in 2008 to remove any conflict of interest as it is the country's banking regulatory authority. The State Bank Group, with a network of 18,266 branches including 4,724 branches of its five Associate Banks, dominates the banking industry in India. The market share...
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...Poverty in India Absolute poverty or destitution is the term used to describe deprivation of basic human needs i.e. food, water, sanitation, clothing, shelter, health care and education. While relative poverty refers to economic inequality in a particular location or society in which people live (The Economist, 2010). India has 1/3rd of World’s poorest population according to World Bank and it has been facing significantly high levels of poverty with most people living in agrarian and rural communities where 77%of poor Indians live. India is amongst the globally largest countries and thus poverty has a considerable pressure and weight on the country; about three-quarters of India’s population reside in rural areas and suffer higher levels of poverty regardless of efforts and policies being implemented from the past four decades (Prato & Longo, 2012). The rates of poverty in the country are affected by issues such as presence of factors, population density, ecological conditions and irrigation facilities etc. While there are other factors too that influence the level of poverty in rural areas of India i.e. caste, land ownership, literacy and gender (Yusuf, 2014). Impacts of Openness and Literacy rate on poverty in India Degree of openness refers to an economic metric, calculated as the ratio of country's total trade, the sum of exports plus imports, to the country's gross domestic product. The interpretation of the Openness Index is the higher the index the larger...
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...www.ccsenet.org/ijef International Journal of Economics and Finance Vol. 2, No. 4; November 2010 Measuring Post Merger and Acquisition Performance: An Investigation of Select Financial Sector Organizations in India Dr. Neena Sinha Associate Professor, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1805-6810 E-mail: dr_neenasinha@yahoo.com Dr. K.P.Kaushik Professor, National Institute of Financial Management Sector-48, Pali Road, Faridabad-121001, India Tel: 91-93-1236-0874 E-mail: kp_kaushik@hotmail.com Ms. Timcy Chaudhary (Corresponding Author) Research Associate, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1856-8903 Abstract E-mail: timcy9@gmail.com The present paper examines the impact of mergers and acquisitions on the financial efficiency of the selected financial institutions in India. The analysis consists of two stages. Firstly, by using the ratio analysis approach, we calculate the change in the position of the companies during the period 2000-2008. Secondly, we examine changes in the efficiency of the companies during the pre and post merger periods by using nonparametric Wilcoxon signed rank test. While we found a significant change in the earnings of the shareholders, there is no significant change in liquidity position of the firms. The result of the study indicate that M&A cases in India show...
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...Working Paper No. 201 Determinants of Competitiveness of the Indian Auto Industry Badri Narayanan G. Pankaj Vashisht January 2008 INDIAN COUNCIL FOR RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS Contents Foreword............................................................................................................................. i Executive Summary .......................................................................................................... ii 1. Literature Review ..................................................................................................... 1 1.1 Introduction......................................................................................................... 1 1.2 Literature Review................................................................................................ 2 1.2.1 Global Comparisons ................................................................................... 3 1.2.2 Policy Environment and Evolution of Indian Auto Industry....................... 4 1.2.3 Productivity................................................................................................. 7 1.2.4 Aspects Related to Supply Chain and Industrial Structure......................... 7 1.2.5 Technology and Other Aspects ................................................................. 10 1.3 Contributions of the Study ................................................................................ 13 Supply Side Features of...
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...ltdDabur India - Working Capital and Cost Management Dr. Narender L. Ahuja, Institute for Integrated Learning in Management, New Delhi, India Ms. Sweta Agarwal, Institute for Integrated Learning in Management, New Delhi, India ABSTRACT After running as a family business for over 100 years, when in late 1990s the management of the Dabur was handed over to a team of professional managers, the new management faced a gigantic task of improving performance in several critical areas. In particular, working capital and cost management required urgent attention as the company’s performance in these areas had been far from satisfactory. The then prevailing current ratio of 3.2 and quick ratio of 2.4 were considered too high and indicative of heavy unnecessary investments in working capital that would have a negative effect on company’s profitability. Efforts to improve the working capital efficiency were met with stiff resistance from various quarters, but finally yielded results. The case study discusses the measures taken to improve the working capital and cost management performance, and how with concerted efforts the management turned around a highly inefficient working capital management into one of the most efficient in the FMCG sector of Indian Industry. In fact, the company seemed to have taken the matter to the other extreme of negative working capital, with the current ratio declining to 0.8 and the quick ratio to just 0.4 in 2004-05. In 2005-06 as the company was ready...
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...------------------------------------------------- POSTURE OF THE PAPER This study examined the validity of strategic human resource management practices and their effects on company performance on the basis of service sector, ownership and private-public organizations. Data were collected from several articles (mentioned in the reference section) and studies about different range of strategic HRM practices. The findings indicate that a valid set of strategic HRM practices (training, participation, results-oriented appraisals, and internal career opportunities) affect both service performance and financial performance. HRM strategies may be influenced by the decisions taken on strategy (the nature of the business currently and in the future) and by the structure of the enterprise (the manner in which the enterprise is structured or organized to meet its objectives). In an enterprise with effective HRM policies and practices, the decisions on HRM are also strategic decisions influenced by strategy and structure, and by external factors such as trade unions, the labor market situations and the legal systems. In reality most firms do not have such a well thought-out sequential model. But what we are considering here is effective HRM, and thus a model where HRM decisions are as strategic as the decisions on the type of business and structure. This study explores the three important questions in the context of Bangladesh mentioned below: 1. Whether extent of impact of strategic...
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...MERGER & ACQUISITION IN INDIA: An Analytical Study by Harpreet Singh Bedi Sr. Lecturer, Department of Management Lovely School of Business Lovely Professional University Mobile no- 9855267392 Harpreet.bedi_lim@yahoo.com Electronic copy available at: http://ssrn.com/abstract=1618272 MERGER & ACQUISITION IN INDIA: An Analytical Study Abstract The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. Some well known financial organizations also took the necessary initiatives to restructure the corporate sector of India by adopting the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important strategic choice. The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. Till recent past, the incidence of Indian entrepreneurs acquiring foreign enterprises was not so common. The situation has undergone a sea change in the last couple of years. Acquisition of foreign companies by the Indian businesses...
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