manufacturing and construction sector in india monthly update august 2012
Post on 04-Apr-2018
213 Views
Preview:
TRANSCRIPT
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 1/12
Manufacturing Sector in India
Monthly Update
August 2012
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 2/12
Top Story
Polymer price to remain high in the Indian market Increase in price of naptha and crude oil has significantly contributed towards the hike in
polymer prices. Naptha is the primary input used in the production of polymer. Polymer
manufacturers have raised the price of polymer by INR 1‐2 per kg across the different
ariants of polymer. Even though the global manufacturers attempted to reduce pricesv
domestic manufacturers raised the price owing to a depreciation of the rupee.
However the depreciation of rupee has proved to be a boon the Indian polymer industry
as no polymer has been imported over the last two months. The whole demand of the
domestic market is being catered by the Indian manufacturers of polymer. Haldia
etrochemicals, Reliance Industries and Indian Oil Corporation are the primaryPproducers of Polypropylene in India.
Companies may increase the prices of polypropylene (PP) and polyethylene (PE) next
month. Rise in price of polymer has led to the processors shifting towards cheaper
processed polymer.
News Update
General L&T to bring in an investor for L&T IDPL
Larsen & Toubro has announced plans to bring in an investor for its infrastructure
development unit L&T IDP. Earlier the company had planned an IPO which however did
ot happen owing to unfavorable market conditions. Company also plans to sell its equityn
shares in the port project Dhamra in Odisha.
Company has set a target to increase its turnover from infrastructure projects in West
Asia from INR 82.95 bn to INR 110.60 bn by the end of this year. International projects
are expected to compensate for the slowdown in construction contracts being awarded in
India.
Construction equipment major Caterpillar to launch “remanufactured” p oducts in
India
Construction Equipment company Caterpillar Inc has announced plans to launch its
financial services and remanufactured products in the Indian market. In case of
remanufactured products salvage technology is utilized to repair damaged components
to yield performance similar to new products.
r
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 3/12
Substantial investments are being made to ensure that India emerges as an important
export base for the company. It offers integrated solutions customized to meet the
requirements of the Indian customers. Government’s emphasis on infrastructure
evelopment has presented great opportunities to the company to ensure high growth inhe Indian market.
dt
Pellet production forced to increase following drop in iron ore fines export
Decline in exports of iron ore due to high taxes and high transportation costs have led to a
shift towards the production of iron ore pellets for the domestic market. Following the
drop in exports since last year many miners engaged in overseas exports of iron ore have
conveyed interests to set up pellet plants in India. Major miners and traders who have
xpressed an interest to set up pellet plants include KJS Ahluwalia, MGM Minerals ande
Indrani Patnaik.
Iron ore pellets are used as an alternative of lumpy iron ore that can be directly fed tolast furnaces. They are formed of powdery iron ore fines and were primarily imported
rom China.
b
f
Pipe orders worth INR 4 bn bagged by Essar Steel
Flat carbon steel manufacturer Essar Steel has obtained orders from Middle East and
Africa for manufacturing steel pipes worth INR 4 bn. The order in Africa involves the
construction of offshore line pipe of length 4,000 mts to be used for the Chevron project.
he order from the Middle East entails the supply of 45,000 mt of 48 inch high gradeT
coated pipes in the coming quarter.
The total order for pipes of the company has reached INR 10 bn. The two major globalrders are expected to strengthen the company’s position in the pipe market segment
cross the world.
o
a
Mumbai to host International Packaging Expo 2013
The Indian Institute of Packaging is slated to organize the “India Pack 2013”, in the month
of Jan next year. The packaging industry is on the lookout for latest technologies.
The Expo will provide a major platform to the companies that provide end to end
packaging solutions to the various end users hailing from pharmaceuticals to toys, sports
ood and allied industry. Live demonstration of packaging equipment, machineries,g
plants will be shown to the visitors.
arge and eminent industry exhibitors from, France, China, Korea, Taiwan, Thailand and
any other countries is slated to participate in the Expo.
L
m
Manufacturing – Monthly Update
India to import coal from Kentucky
FJS LLC has signed a deal worth INR 388 mn with India based Abhijeet Group to export
coal from West Virginia, Kentucky. Under the deal Kentucky will supply 9 mn tonnes of
coal per year to Abhijeet Group. Around 70% of the electricity in India is generated from
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 4/12
coal fired power plants. The power plants operate at around 70 to 80% of their total
apacity. Domestic production cannot meet the rising demand for coal. Import of coal will
elp the company to meet the growing demand from energy and steel sectors in India.
c
h
Ghatkuri mines to be allotted to Public Sector Undertakings
Steel Authority of India Limited (SAIL) is trying to enter into a mining joint venture with
Jharkhand State Mineral Development Corporation (JSMDC) and obtain the lease for the
Ghatkuri iron ore mine in West Singhbhum district. Company is trying to enter into the JV
following the Supreme Court directive that the Ghatkuri mines can be leased only to
public sector companies. The joint venture is expected to meet the raw material
equirements of SAIL for around 60 years. The Ghatkuri mine is a major virgin iron orer
mine spread over 2580 acres and has an estimated reserve of 600 mn tonnes.
ther major public sector companies aiming to obtain the lease include Rashtriya Ispat
igam Limited (RINL) and National Mineral Development Corporation (NMDC).
O
N
IECIAL to be known as ICEMA
Indian Earthmoving and Construction Industry Association Ltd (IECIAL) have been
renamed as Indian Construction Equipment Manufacturers Association. Through this
change the association expects to align itself with global industry bodies and expand the
cope of its activities. The construction industry is expected to witness robust growth but s
it needs to be globally competitive.
ICEMA is affiliated to CII. It represents 44 leading companies who manufacture, trade and
inance a variety of construction equipments such as hydraulic excavators, wheel loaders,
ackhoe loaders, motor graders, vibratory compactors, etc.
f
b
News Update
Expansion Plans Putzmeister plans to expand its market base
Major German construction equipment manufacturer Putzmeister is planning to expand
its base in the tier II cities of Uttar Pradesh. Company is entering into contracts with real
estate developers, contractors and builders in order to market its concrete pumpingachines. The Putzmeister factory in Goa has a localization percentage of around 80%m
and caters to demand from countries such as Bangladesh, Bhutan, Sri Lanka etc.
Other potential towns identified by the company in India include Lucknow, Kanpur, Agra,
Allahabad, Varanasi as well as Noida and Ghaziabad.
West India starts a new packaging plant in India
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 5/12
A new packaging plant will be set up by West Pharmaceutical Services in Sri City, India.
The new plant will produce elastomeric pharmaceutical packaging components. The new
plant is expected to start production by 2015. Total manufacturing space is planned to be
xtended to 37,700 sq mts by 2023. The new facility construction in India is a part of theirm’s business expansion in Asia.
ef
Monier to set up a new roofing tile plant in India
A new concrete tile plant will be set up by the Monier Group in Mumbai. The step is taken
by the company to strengthen its presence in the Asian market. The initial work for the
plant has already been started and production is due to start from next year.
The Monier Group is a major producer of roofing products and has a concrete tile plant in
Bangalore and a glazing facility for clay tiles in Calicut , Kerala.
Arvind Ltd
sets
up
glass
fabric
manufacturing
unit
Arvind Ltd. Has entered into a joint venture with PD Fibre Glass Group to manufacture
glass fabrics in India. The new manufacturing facility would require investments worth
INR 0.8 bn and is expected to provide business worth INR 2.5 bn within the first three
ears and INR 5 bn by the fifth year. The new facility will have a production capacity of y
30,000 tonnes of fabric after five years.
The market for glass composite is valued at INR 5 bn. The production will be exported
uring the initial years and focus will be diverted on the Indian market following the
ountry’s emphasis towards green energy.
d
c
Briggs and
Stratton
to
expand
Indian
business
US based Briggs and Stratton has announced plans to expand production capacity of the
Coimbatore plant. Owing to the growing agricultural mechanization market the company
expects its sales revenue to reach INR 2,343 mn over the next three years. The current
roduction capacity of the plant is around 7,800 units which will be increased to 22,000p
units by 2015‐16.
Company is also planning to achieve inorganic growth in the Indian market through the
acquisition of small and mid‐sized companies that are engaged in the manufacturing of
agriculture and construction equipment and generators.
Zoomilion to
set
up
a joint
venture
plant
in
India
Electromech, the largest crane maker in India has entered into a deal with China based
Zoomlion Heavy Indus. Scien. & Tech Co for a joint venture plant in India. Zoomilion will
hold 70% stake in the tower crane factory which will be Zoomilion’s first overseas
nvestment project. Zoomilion plans to invest around INR 4,687 mn to develop its
usiness in the Indian market.
i
b
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 6/12
Owing to rising emphasis on infrastructure development the companies expect to earn
NR 2,345 mn annually from the joint venture. Earlier Chinese construction company,
any Heavy Industry Co Ltd had established a factory in 2009 to tap the Indian market.
I
S
Industry Expert Speak
CIL eyes overseas expansion – S. Narsing Rao, Chairman, CIL “My focus on overseas acquisitions is on government‐to‐government deals and the
developing and emerging market routes,” L&T to bring in an investor for L&T IDPL – A. M Naik, Larsen & Toubro (L&T) “Chinese equipment has been giving trouble, and the mindsets (of power developers) are
shifting towards better quality. With the rupee’s devaluation and costs goingdown…hoping Chinese imports go down,"
Transaction Detail (Jun – Aug 2012)
Buyer Target Deal Size
(INR mn)
%
stake
Deal
Status
Type of
Transaction
Date
26th Aug2012
Larsen andToubro Ltd
Flowserve Corp. NA 100% Expected M&A
24 gth Au
2012
Jindal Steel and
Power
Gujarat NRE
Coking Coal(GNCC)
430 2.67 Completed PE
27th Jul
2012
Crompton
Greaves LtdZIV Group 10,207 100% Completed M&A
Annual Financial Results – Revenue (INR mn)
FY ‘09 FY ‘10 FY ‘11 FY ‘12 Company
Oil and Natural Gas Corp. Ltd. 1,052,756.6 1,026,655.8 1,201,955.1 1,463,705.6
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 7/12
Hindalco Industries Ltd. 659,629.5 607,079.2 720,778.7 808,213.7
Coal India Ltd. 412,035.7 467,840.0 526,334.8 624,154.3
Gail India Ltd. 247,818.0 270,353.0 351,066.5 440,578.2
Sterlite Industries (India) Ltd. 212,636.6 244,903.0 302,472.0 412,063.0
Grasim Industries Ltd. 184,316.9 200,870.8 214,612.3 251,470.9
Aditya Birla Nuvo Ltd. 138,939.7 157,699.4 183,839.4 220,732.5
Pantaloons Retail (India) Ltd. 76,690.4 97,869.4 122,117.9 130,713.9
NMDC Ltd. 75,640.3 62,390.9 113,689.4 112,605.3
Ashok Leyland Ltd. 59,810.7 72,447.1 111,771.1 128,419.9
Crompton Greaves Limited 87,372.6 91,408.7 100,051.1 112,485.8
Welspun Corp Ltd. 57,395.3 73,636.7 80,236.4 89,765.8
Alok Industries Ltd. 30,907.8 44,243.4 66,149.0 89,008.6
JBF Industries Ltd. 43,099.1 49,409.1 64,655.7 71,673.6
National Aluminium Co. Ltd. 52,112.2 51,745.1 60,554.9 65,002.7
Havells India Ltd. 54,774.9 51,625.7 56,126.3 65,182.0
Voltas Ltd. 43,259.0 47,574.7 51,913.8 51,857.4
Jindal Saw Ltd NA* 56,947.1 45,948.9 60,263.9
Jain Irrigation Systems Ltd. 28,695.2 34,348.0 41,745.6 NA
DCM Shriram Consolidated Limited(DSCL)
35,580.7 35,704.5 41,678.3 50,062.1
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 8/12
Annual Financial Results – Income (INR mn)
FY
‘09
FY
‘10
FY
‘11
FY
‘12
Company
Oil and Natural Gas Corp. Ltd. 197,953.4 194,035.3 224,559.3 281,436.1
Hindalco Industries Ltd. 4,838.9 39,254.7 24,563.7 33,969.5
Coal India Ltd. 19,675.0 96,224.5 108,673.5 147,882.0
Gail India Ltd. 28,263.5 33,278.3 40,209.7 44,436.1
Sterlite Industries (India) Ltd. 35,399.9 39,263.0 48,898.0 38,998.0
Grasim Industries Ltd. 21,866.6 30,955.3 22,790.1 26,474.6
Aditya Birla Nuvo Ltd. (4,357.3) 1,545.6 8,221.0 8,901.3
Pantaloons Retail (India) Ltd. 100.7 674.9 1,212.1 880.8
NMDC Ltd. 43,723.8 34,472.6 64,992.2 72,653.9
Ashok Leyland Ltd. 1,900.0 4,236.7 6,313.0 5,659.8
Crompton Greaves Limited 5,599.0 8,598.7 8,886.7 3,735.9
Welspun Corp Ltd. 2,135.1 6,104.0 6,330.3 2,385.4
Alok Industries Ltd. 740.5 1,377.1 3,115.4 3,805.3
JBF Industries Ltd. 1,873.8 1,864.0 5,460.0 2,229.8
National Aluminium Co. Ltd. 12,722.7 8,142.2 10,693.0 8,495.0
Havells India Ltd. (1,601.6) 695.6 3,035.7 3,699.2
Voltas Ltd. 2,514.0 3,809.9 3,572.4 1,620.6
Jindal Saw Ltd NA* 5,495.3 4,421.8 1,891.1
Jain Irrigation Systems Ltd. 1,294.4 2,475.9 2,807.1 NA
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 9/12
DCM Shriram Consolidated Limited
(DSCL)842.5 (142.7) 119.2 NA
*change in financial year
Quarterly Financial Results – Revenue (INR mn)
Jul-Sep
2011
Oct -Dec
2011
Jan- Mar
2012
Mar-Jun
2012
Company
Oil and Natural Gas Corp. Ltd. NA 185,171.3 NA NA
Hindalco Industries Ltd. NA 66,469.7 NA NA
Coal India Ltd. 131,480.8 153,492.8 194,189.9 165,005.9
Gail India Ltd. NA 112,597.8 NA NA
Sterlite Industries (India) Ltd. 102,352.0 102,461.8 110,022.8 105,913.9
Grasim Industries Ltd. 56,491.9 62,600.7 73,668.4 67,934.2
Aditya Birla Nuvo Ltd. 52,859.0 56,530.6 64,242.9 52,535.8
Pantaloons Retail (India) Ltd. 31,802.6 31,748.0 32,772.8 35,524.5
NMDC Ltd. 30,623.2 28,219.5 25,936.5 28,379.0
Ashok Leyland Ltd. 30,945.7 28,798.0 43,721.2 29,409.8
Crompton Greaves Limited 27,055.3 30,279.5 30,773.6 28,111.4
Welspun Corp Ltd. 20,345.0 24,496.8 26,997.8 25,497.2
Alok Industries Ltd. NA NA NA NA
JBF Industries Ltd. 18,520.2 18,040.1 19,207.6 17,965.3
National Aluminium Co. Ltd. 15,837.3 14,486.2 17,534.1 17,480.7
Havells India Ltd. 15,850.0 16,596.0 17,777.0 17,778.0
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 10/12
Voltas Ltd. 11,019.3 11,646.4 15,841.8 16,766.5
Jindal Saw Ltd NA 10,967.1 NA NA
Jain Irrigation Systems Ltd. 7,711.1 NA NA NA
DCM Shriram Consolidated Limited(DSCL)
10,601.9 13,996.9 13,312.8 NA
Quarterly Financial Results – Income (INR mn)
Jul-Sep
2011
Oct -Dec
2011
Jan- Mar
2012
Apr-Jun
2012
Company
Oil and Natural Gas Corp. Ltd. NA 67,414.1 NA NA
Hindalco Industries Ltd. NA 4,506.9 NA NA
Coal India Ltd. 25,931.1 40,377.6 40,134.1 44,692.6
Gail India Ltd. NA 10,914.2 NA NA
Sterlite Industries (India) Ltd. 6,421.0 9,135.2 3,487.7 12,015.9
Grasim Industries Ltd. 4,179.4 6,690.7 8,087.8 7,180
Aditya Birla Nuvo Ltd. 2,142.5 2,523.9 1,702.9 2,668.4
Pantaloons Retail (India) Ltd. 150.5 (79.6) (0.6) 227.1
NMDC Ltd. 19,631.5 18,588.1 16,422.8 19,060.0
Ashok Leyland Ltd. 1,540.8 669.0 2,587.4 669.4
Crompton Greaves Limited 1,166.6 771.4 1,003.2 859.0
Welspun Corp Ltd. 710.8 (701.9) 1,185.5 74.7
Alok Industries Ltd. NA NA NA NA
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 11/12
JBF Industries Ltd. 760.1 711.8 235.4 337.0
National Aluminium Co. Ltd. 1,393.4 512.2 2,821.0 2,230.8
Havells India Ltd. 808.0 886.0 1,208.2 713.0
Voltas Ltd. 418.7 (1,154.1) 1,038.1 640.1
Jindal Saw Ltd NA 365.4 NA NA
Jain Irrigation Systems Ltd. 115.7 NA NA NA
DCM Shriram Consolidated Limited(DSCL)
(384.1) (252.0) 494.9 NA
Events Calendar
Confer nce on “Lae test Trends in
Construction Industry” Date: 3rd Sep 2012
u,Venue: Hotel Club Melange, Erode, Tamil Nad
an IndustryIndiaOrganizer: Confederation of Indi
Website: www.cii.in Contact ID: s.manoharan@cii.in
Contact No: +91‐424‐4272460
Confer nce on "Sue stainable Mining - The
Road Ahead"
Date: 8th Sep, 2012
Venue: Radisson Blu, Main Road Kadruarkhand, India
ndustry
Diversion, Ranchi, Jh
Organizer: Confederation of Indian I
Website: www.cii.in Contact ID: chira.ranjan.saha@cii.in
Contact No: + 91‐33‐22315576
Conference on Infrastructure Project
Management
Date: 20th Sep, 2012,Venue: Hotel Leela Palace, Diplomatic Enclave
lhi, Delhi, India
ian Industry
Chankyapuri, New De
Organizer: Confederation of IndWebsite: www.cii.in
ontact ID:C sakshi.kohli@cii.in ontact No: +91‐11‐45772037C
Lean Manufacturing for Releasing Hidden
Capacity
Date: 26th ‐27th Sep, 2012 Venue: CII Naoroji Godrej Centre of Excellence,
jCII Naoroji Godrej Centre of Excellence, Godre
Mumbai, Maharashtra,dian Industry
Station‐Side Colony,Organizer: Confederation of In
Website: www.cii.in Contact ID: s.d.puranik@cii.in Contact No: + 91‐22‐2574 5146
Manufacturing – Monthly Update
7/29/2019 Manufacturing and Construction Sector in India Monthly Update August 2012
http://slidepdf.com/reader/full/manufacturing-and-construction-sector-in-india-monthly-update-august-2012 12/12
Research on India (ROI) is a leading source for market research on various sectors in
ndia that offers premium research content from worldwide publishers of market
orts.
I
research rep
Contact us:
mW: https://www.researchonindia.co
; International: +91 (33) 4027 6214/5T
E
: India (Toll Free): 1800 102 1133
: support@researchonindia.com
Connect with Us
Disclaimer: This
monthly
update
is
published
for
general
information
only
based
on
press
rticles and company releases. Research on India has not independently verified any of nformation and is not responsible for any loss or damage arising from use of this document. a
i
Manufacturing – Monthly Update
top related