...II Assessment of the changes in Indian industry environment and their impact in respect of the following sectors: a) Telecom b) Automobile c) Shipping ARPIT JAIN: 12P189 Indian Industries The Indian economy has survived the global downturn very well. It has posted one of the highest rates of economic growth in the world despite other major industrial giants lagging behind. At the end of 2009, the Indian economy was growing at 7% a year. The strongest growth was coming from the manufacturing and construction sector and the weakest section was agriculture. The drawback of such a rapid economic expansion is a rise in inflation. The economy of India is the eleventh largest economy in the world by nominal GDP. Post independence the country went into a fast paced economic growth which was further fuelled by the free market principles started in the 1990’s which welcomed foreign investments. It has been predicted by leading Economists around the world that by 2020, India will be among the leading economies of the world. Four key industrial economic sectors are identified in India. The primary sector, largely extract raw material and they are mining and farming industries. In the secondary sector, refining, construction, and manufacturing are included. The tertiary sector deals with services and distribution of manufactured goods. India's service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sector contribute 28% and 14.6% respectively...
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...Any change in the price of these commodities has an implication on the profitability of the company. Similarly, any change in the exchange rate of currencies also has an impact on companies that import their raw materials or export their products. Interest rate movements Companies borrow money to invest for their expansions. Also, consumers borrow money to buy products. Thus, if the interest rates are high, the borrowing cost of the companies would increase. Also, consumers would borrow less resulting in lesser sales for the company. Therefore, interest rates also have an impact on the profitability, and therefore, the stock price of the company. The sector in which the company operates Apart from the economy on the whole, the sector in which the company operates also needs to be considered. If the sector is not growing, the company’s profitability would be...
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...I. Introduction Automobile industry globally and in India is one of the key sector to economy. The well-developed Indian automotive industry produces a wide variety of vehicles, passenger cars, light medium and heavy commercial vehicle multi utility vehicles such as jeeps, scooters, motorcycle, mopeds, three wheelers, tractors and other agricultural equipment etc. India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer. The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly. It’s currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported. The Indian automobile market is estimated to become the 3rd largest in the world by 2016 and will account for more than 5% of global vehicle sales. It is the...
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...Growth in Indian Automobile sector Submitted to: Prof. V P Sharma Submitted by: Mansi Pancholi ( 12 SDP 719 ) Date: 31/07/2012 Introduction: Looking at the economy of India, India is the Largest Democracy in the world with 1.2 billion people. It is 4th largest GDP (PPP) and 11th largest GDP (Nominal). India is 2nd fastest growing economy (Estimate 2011-12 – 9%) with India’s average growth rate 7.3% over past 10 years and expected to outpace China in next decade. India is 3rd largest investor base in the World. If we look at the demographics of People of India, It consists of 50 % under 25 years & 65% under 35 years. India also having the 2nd largest pool of certified professionals and highest number of qualified engineers in the world. If we look at sector wise distribution, India is having Services (52%), Manufacturing (27%) and Agricultural (21%) shares. Average Real GDP growth in last 5 year was 8.5% with GDP Per Capita at US $ 1018 and a projected GDP growth in 2011-12 is 9.0%. The Automotive Sector in India is one of the largest in the world and one of the fastest growing globally. It was 1897 when the first car rolled out on Indian roads. Until 1930 cars were imported from other countries. First Indian Automotive Company starts with Mahindra & Mahindra in 1940 when it was established by two brothers as a trading company in 1945, and begun assembly of Jeep CJ-3A utility vehicles under license from Willys. However, the growth was relatively slow in the 1950s...
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...“Literature Review” IMPACT OF AUTOMOBILE ON THE ECONOMY: Mr. Zahoor Sheikh Sarwar (CASE), Mr. Azam Ishaque, (CASE), Mr. Nadeem Ehsan, (Center For Advance Studies in Engineering), Mr. Danial Saeed Pirzada, (Center For Advanced Studies in Engineering), and Mr. Zafar Moeen Nasir, (CASE) in their report published in International Journal of Productivity and Performance Management, has Identified that automobile sector has huge economic potential and the Study identified the prevalent condition of productivity in automotive Manufacturing industry of Pakistan and indicated the possible areas for Enhancing productivity. The findings of this research have revealed that Effective utilization of role of technology can enhance the productivity of Pakistani manufacturing firms drastically. Pakistan Auto Industry Development Program (AIDP-2006), an study conducted by Ministry of Industries and Production, Government of Pakistan states that the Pakistan Auto Industry has become a leading industrial sector to steer the growth in large scale manufacturing sector. The high economic and job multiplier effect of this industry and its deep forward and backward linkages in allied industries, make the auto industry a key player in the national economy. the world which manufacture all kinds of vehicles i.e. 2/3 wheelers, motorcars, LCVs, tractors, prime-movers & trucks and buses. The total country requirements are generally met from the local production except...
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...INDIAN AUTOMOBILE INDUSTRY NORTH SOUTH UNIVERSITY Authorizer: MehreeIqbal (MeI) Faculty, School of Business North South University NORTH SOUTH UNIVERSITY Letter of Transmittal 10th August 2012 MehreeIqbal Lecturer, School of business, North South University Dear Miss, In this report of “Indian Automobile Industry”, we have tried to implement our learning from this course. We would like to thank you for offering the opportunity to work on this topic. Despite many limitations, we have tried our best to make this report accurate and reliable. If you have any further enquiry concerning any additional information, we would be very pleased to clarify that. This report also includes the key components and their brief discussion related with this subject that you have mentioned earlier. Yours sincerely, Students of Sec-12 MGT (372) Acknowledgement: The most pleasant part of submitting the report is to get the opportunity. We would like to thank those who have contributed to it a lot. Unfortunately, the list of expression of thanks- no matter how extensive is always incomplete and inadequate. These acknowledgements are no exception. Our first thank goes to the almighty Allah for bestowing us the patience and courage to finish this huge task within its deadline. Thanks must go to the team members, whose unflagging patience and astounding capacity for creative work, and long hours made the report both possible and successful – under the pressure...
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...Reverse Logistics in Indian Automobile Industry Reverse Logistics is a process in which a product moves in reverse through the supply chain network. It may be used for the purpose of recapturing value of a final product or for even proper disposal. It may also be termed – service, as the process of planning, implementing and controlling the efficient and cost effective transfer of raw materials, in-process inventory, finished products and related information, from consumption to the point of origin, for the purpose of recapturing value of proper disposal. While the primary sectors involved in making use of this process may be classified as the Pharmaceutical Sector, Retail sector, Automobile sector and the Electronics sector, we are mainly about to focus all our attention to the practices of ‘Reverse Logistics’ in the Indian Automobile Industry. To truly know why the whole idea of ‘Reverse Logistics’ assumes significance when considered in terms of the Automobile Industry, first we need to think of the nature of the final product i.e. Automobiles or Vehicles as we call them. The parameter one needs to look at is the life cycle of the product and what happens to the final product once it reaches the end of its useful life. By its very nature, it’s difficult to predict the life cycle of the final product. This is because; it is highly susceptible to the nuances of the human subjectivities. But even if we are unable to predict the duration of the life cycle, we have definitely...
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...GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection of Revenue/Market Share for next five years 25 5. Implications of the Strategies 27 6. Conclusion 28 F. References 29 Indian Automobile...
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...Indian Steel Industry India is among the top producers of all the form of steel in the world. Low cost manpower and the abundance of iron ore and coal reserves makes India highly competitive. India became the 4th largest producer of crude steel in the world in 2010 as against the 8th position in 2003 and is expected to become the second largest producer of crude steel by 2015. The country has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernization and up-gradation of old plants, improving energy efficiency and back integration into global raw material sources. A new research report Indian Steel Industry Outlook to 2012 says that the, Indian crude steel production will grow at a CAGR of around 10% during 2010-2013. The demand for steel is a derived from the demand from other sectors like automobiles, consumer durables, and infrastructure. With the government proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile, and power will drive the steel industry in future. Led by strong demand for autos and engineering services, the domestic steel demand in India remains robust, as per Moody's sectoral analysis on Asia's steel sector. According to the analysis, the outlook for the domestic operating environment is positive, driven by robust growth in infrastructure, autos and construction and constrains...
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... the question of interference by the government in the exchange rate market should be decided on the foundation of the impact of such exchange rate fluctuations on the real effective exchange rate and the likely effects on the employment situation in the country. There are an array of factors affecting the exchange rate fluctuations like interest rate, balance of trade, money supply, economic growth, foreign debt, inflation etc. India has seen a huge breakdown of the Rupee because of the adverse affects of these factors on the Indian currency. Mentioned below are the various sectors being affected by the Rupee depreciation. Fuel Price: India imports most of its oil consumption. As a result of dwindling of domestic currency, the Oil Marketing Companies(OMCs) will have to pay more to the countries from where they import oil and this encumber is passed on to the Indian consumer. India saw a huge ascend in petrol and diesel prices in the year 2012-13. Given that fuel prices have increased, the overall cost of transportation in the economy has escalated because of which the cost of all the...
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...AUTOMOTIVE SECTOR REPORT An Introduction about the factors influencing the sector: 1. Infrastructure/ GDP: Automobiles sales revenue follows economic cycles very closely. This is especially true in the case of sales of HCVs. Availability of good roads is an important determinant for passenger vehicle demand. 2. Affordability: Movement in income and interest rates determine the affordability of new motor vehicles. The ready availability of cheap loans is an important factor driving demand. Disposable income in the rural agriculture sector is increasing. 3. Auto Financing: There are more than 35 financers in the market today, with the State Bank of India being the leader. Easy availability of finance has been one of the most important growth drivers for the auto industry since 2003. 4. Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be more inclined to use and replace cars. The Indian middle class is growing and is estimated to grow from 50 million currently to 550 million by 2025. 5. Cost of ownership: i. Petrol prices: The price of oil affects the driving habits of consumers and the type of car they buy. During periods of high fuel cost as experienced in 2007 and the first half of 2008, demand for large cars declined in favour of...
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...SWOT- Analysis of Automotive STRENGTHS 1. Indian Automobile Industry is globally cost competitive: It is possible because of cheap labor availability and tax holidays provided by SEZs. 2. Government support: Indian government has also put Auto among its priorities 12 with 2012 target to become 10% of our GDP. 3. Indian Automotive Industry is following global accepted quality measures at a lower cost. This makes it a perfect destination for production-outsourcing of automobiles. 4. The availability large talent pool at cheap prices. 5. Availability of cheap R&D; IITs be deemed as centers of excellence for automobile research and access to latest technology. WEAKNESS The biggest and probably the only weakness of Indian automobile Industry is its slow growth in Research and Development most companies (barring TATA and M&M) do not have adequate spending on R&D in comparison to their turnover. Maruti for instance is completely dependent upon Suzuki for any new technology all of the successful cars sold by it were developed by Suzuki; Swift, A-Star (which replaced alto in other markets as New Alto), SX4, Ritz etc. This weakness will soon become history as Indian companies are catching fast in R&D and are showing strong signs of success e.g.: M&M Scorpio Hybrid, TATA Nano. Besides R&D the other weakness is political hostility (TATA Nano Singur plant) but is only a regional problem of less developed states or pro-communist states, states like Gujarat, Maharashtra...
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...Historical Examples of Labor Supply and Demand Great Depression XECO212 April 6, 2012 One of the most severe disastrous economic incidents that ever happened was called the great depression, which, had formed in 1929 and lasted until 1939. The Great Depression caused many businesses to drastically reduce spending in order to remain profitable, which in turn decreased the demand for labor. There was an excess supply of labor, since many companies lay off workers in order to maintain a normal profit. “The unemployment rate had reached almost 25%; certain sectors, such as certain industries, had unemployment rates of almost 30% to 35%”(Carey Nelson) because of less spending and demand and hence of production. During the great depression the labor demand was decreased and the labor supply was increased, this could have happened by so many A factor, such as productivity was decreased and a decrease in profits by many employers; which this had caused a decrease in demand for labor during the Great Depression. Additionally, the rising wages that occurred until the Great Depression increased the supply for labor as many Americans dreamed of living in a middle class life. Unfortunately, the increase in wages did not follow the increase in supply of labor, leaving many potential employees jobless during the Great Depression. The decrease in the amount of disposable income was also an issue, as many Americans became bankrupt after the...
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...report provides a consolidated preview of the external environment of Ashok Leyland and the Indian automobile industry. This study will take us through the evaluation of external factors using EFE matrix, to the comparison of the company with its competitors (CPM) and study the incentives given by the government to encourage the expansion of the Indian automobile industry. Introduction The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion. The industry has provided direct and indirect employment to 13.1 million people. But lately the Indian automobile industry has been going through a low phase since the past 10 months and experts believe that situation is going to sustain in the current financial year that ends in March 2014. Demands continue to remain low as against the expectations of the Indian auto makers, due to the crisis in the economy, increase in fuel prices and loan rates. Until few years ago, this industry boomed with sales but the falling value of Indian rupee is only bringing its depreciation. (Car trade, n.d) The market is divided into four segments namely two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. (Grewal, n.d) Source: Society of Indian Automobile Manufacturers (SIAM) According to the deputy director general of SIAM Sugato Sen cited in...
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...A BRIEF REPORT AUTO AND AUTO ANCILARIES IN INDIA March, 2012 1. OVERVIEW OF AUTO INDUSTRY 1.1 Current Status One of the major industrial sectors in India is the automobile sector. Subsequent to the liberalization, the automobile sector has been aptly described as the sunrise sector of the Indian economy as this sector has witnessed tremendous growth. Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in 1993. No industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases. The norms for Foreign Investment and import of technology have also been progressively liberalized over the years for manufacture of vehicles including passenger cars in order to make this sector globally competitive. At present 100% Foreign Direct Investment (FDI) is permissible under automatic route in this sector including passenger car segment. The import of technology/technological upgradation on the royalty payment of 5% without any duration limit and lump sum payment of USD 2 million is also allowed under automatic route in this sector. With the gradual liberalization of the automobile sector since 1991, the number of manufacturing facilities in India has grown progressively. The cumulative production of automobile for April-December 2011 registered a growth of 14.94 per cent over same period in 2010. Production in December...
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