manufacturing and construction sector in india monthly update july 2013

7/27/2019 Manufacturing and Construction Sector in India Monthly Update July 2013

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Manufacturingand

ConstructionSector

in

India

MonthlyUpdate

July2013


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ManufacturingandConstructionMonthlyUpdate

TopStory

India

grants

coal

mining

rights

to

power

producers

Coal mining rights have been granted to the Indian power producers by the government after

five years with a view to speed up production and attract investments. Right to mining has

been awarded to 14 blocks and NTPC alone has obtained mining rights for 4 blocks. The 14

blocks allocated are estimated to yield around 159 mn tonnes of coal a year that would help

to generate about 31,800 MW of power. The mines allocated to NTPC are estimated to have

geological reserves of around 2 bn tonnes.

The government plans to auction mining rights for seven explored coal blocks to private

companies in order to increase production. The allocation process will be carried out

through competitive bidding instead of recommendations from the state or central

government.

NewsUpdate

GeneralEconomiccrisisaffectsIndianmanufacturingsectorManufacturing sector activity for the month of June was broadly flat primarily owing to a

decline in new orders coupled with power cuts and fragile economic conditions. Weak

economic conditions have resulted in poor demand. The rupee depreciation was an all timelow against dollar on heavy capital outflows and monthend dollar demand from importers.

Input prices registered a rise and output prices also rose slightly owing to the depreciation in

rupee.

However, June recorded the highest rise in employment as manufacturers increased the

workforce due to the backlogs in work.

RiseinwagesinChinaexpectedtobenefitIndia

Wages are expected to register an increase in China as a result of which it is expected to

evolve as a high cost economy. Companies who had established bases in China are beginning

to reverse the process and have established bases in Brazil and Indonesia. The questionarises whether India will be able to fill the gap and emerge as the global centre of

manufacturing. The new manufacturing policy in India aims at increasing the share of

manufacturing sector in Indias GDP to 25% in 2020 along with the creation of 100 mn jobs

in the manufacturing sector.

Establishment of large scale manufacturing base in India requires India to emerge as an

attractive destination for investment. It should be characterized by the presence of easy land,


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labor and capital. Establishment and closing businesses should be less cumbersome, along

with being less expensive and time consuming.

AtlasCopco

wins

mining

order

in

India

Atlas Copco, a leading player in the global construction equipment industry has won repeat

mining equipment order in India. The order includes face drilling rigs as well as loading and

hauling machines and is expected to be delivered in 2013. The repeat order is from

Hindustan Zinc, a company of Vedanta Resources PLC. The company engages in the

production of zinc, lead and silver and has been investing in modern construction

equipments with a view to boost productivity. In May 2013, the company announced about

obtaining the order from Hindustan Zinc for use in the Rampura Agucha mine.

Atlas Copco, based in Sweden was found in 1873 and has a global reach across 170 countries.

Toshibalaunches

sub

-watt

LEDs

Toshiba has announced the launch of new white LED product. The white LEDs are fabricated

with gallium nitrideonsilicon. The LED is of the subwatt type, mainly due to the reduction

of forward voltage. The products that would be made available include the TL2FK series with

3.0 x 1.4mm package and the TL3GA series with 3.0 x 3.0mm package. Mass production of the

product is expected to start from Aug 2013.

The product will find widespread applications in general lighting, including straight tube

lights, light bulbs, base lights and ceiling lights.

Paperindustrytoregisteramoderategrowth

The paper industry in India is expected to register a moderate growth on the medium andlong term basis owing to a rise in literacy levels and growth in print media industry.

Government investments in education and change in urban lifestyles is expected to boost the

development of the paper industry. However, with the rise in input costs, the favorable

demand supply scenario for paper is unlikely to translate into higher profits for the

companies operating in the industry.

The paper industry in India has reported a robust growth in revenue over the last five years

owing to steady growth in consumptions and increase in realizations.


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IndustryExpert Speak

AtlasCopcowinsminingcontract in IndiaBobFassl,BusinessAreaPresident,AtlasCopcoMiningandRockExcavationTechniqueWe share a valuable partnership with Vedanta, and this repeat order underlines our strong

focus on customer satisfaction and ability to deliver products and solutions that boost

customer productivity,

Transactions(May2013Jul2013)

Date

Buyer

Target

DealSize

(INRmn)

%

stake

Deal

Status

Typeof

Transaction

16th Jul

2013JSW Steel

Sandur

Manganese &Iron Ore

N.A N.A Pending M&A

28th Jun2013

Jindal Steel &Power Ltd,

Wologizi Mine N.A. N.A. Pending M&A

22nd May

2013JSW Ispat

Heidelberg

Cement India Ltd.N.A. N.A. Pending M&A

22nd May

2013

MitsubishiHitachi Metals

Machinery, Inc.Concast India Ltd. N.A. N.A. Completed M&A

AnnualFinancialResultsRevenue(INRmn)

Companies FY10 FY11 FY12 FY13

Oil and Natural Gas Corp. Ltd. 1,026,655.8 1,201,338.7 1,473,057.2 1,614,491.5

Hindalco Industries Ltd. 607,079.2 722,022.7 808,213.7 801,928.0

Coal India Ltd. 467,840.0 502,292.8 624,154.3 683,027.4

Gail India Ltd. 270,353.0 351,916.1 441,821.4 508,927.1

Bharat Heavy Electricals Ltd. 331,991.9 418,975.5 476,109.0 481,063.1


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Sterlite Industries (India) Ltd. 244,903.0 302,472.0 412,063.0 451,622.9

Grasim Industries Ltd. 200,870.8 214,612.3 251,470.9 279,043.2

Aditya Birla Nuvo Ltd. 157,699.4 183,839.4 220,732.5 251,804.5

Alok Industries Ltd. 44,243.4 66,149.0 97,847.2 135,630.0

Ashok Leyland Ltd. 72,447.1 111,771.1 128,419.9 122,030.8

Crompton Greaves Ltd. 91,408.7 100,051.1 112,485.8 120,944.4

Welspun Corp Ltd. 73,636.7 80,220.8 89,765.8 108,700.5

NMDC Ltd. 62,390.9 113,693.1 112,618.9 106,986.7

JBF Industries Ltd. 49,409.1 64,711.2 71,792.5 74,496.7

Havells India Ltd. 51,625.7 56,126.3 65,182.0 72,218.0

National Aluminium Co. Ltd. 51,745.1 60,565.7 66,115.7 68,094.5

Jindal Saw Ltd 56,947.1 45,863.3 60,364.0 67,559.7

DCM Shriram ConsolidatedLtd. (DSCL)

35,704.5 41,345.1 50,067.2 55,169.0

Voltas Ltd. 47,574.7 51,913.8 51,857.4 55,140.6

Jain Irrigation Systems Ltd. 34,348.0 41,745.6 49,384.6 49,168.8

AnnualFinancialResultsIncome(INRmn)

Companies FY10 FY11 FY12 FY13

Oil and Natural Gas Corp. Ltd. 194,035.3 224,559.3 281,436.2 242,196.4

Hindalco Industries Ltd. 39,254.7 24,563.7 33,969.5 30,268.9


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Coal India Ltd. 96,224.5 108,673.5 147,882.0 173,563.6

Gail India Ltd. 33,278.3 40,209.7 44,436.1 43,736.0

Bharat Heavy Electricals Ltd. 43,269.2 60,533.6 70,874.4 66,933.7




Alok Industries Ltd. 1,377.1 3,115.4 929.9 N.A.


Crompton Greaves Ltd. 8,598.7 8,886.7 3,735.9 (361.4)

Welspun Corp Ltd. 6,104.0 6,330.3 2,385.4 (703.2)

NMDC Ltd. 34,472.6 64,992.2 72,653.9 63,423.7


Havells India Ltd. 695.6 3,035.7 3,699.2 5,814.3


Jindal Saw Ltd 5,495.3 4,446.6 1,891.1 (188.7)


842.5 (142.7) 119.2 2,028.9

Voltas Ltd. 3,809.9 3,572.4 1,620.6 2,077.8

Jain Irrigation Systems Ltd. 2,475.9 2,807.1 2,235.0 30.8


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QuarterlyFinancialResultsRevenue(INRmn)

Companies

Apr-Jun

2012

Jul-Sep

2012

Oct-Dec

2012

Jan- Mar

2013

Oil and Natural Gas Corp. Ltd. N.A. N.A. N.A. 1,614,491.5

Hindalco Industries Ltd. N.A. N.A. N.A. N.A.

Coal India Ltd. 165,005.9 145,725.4 173,250.4 199,045.7

Gail India Ltd. N.A. N.A. N.A. N.A.

Bharat Heavy Electricals Ltd. N.A. N.A. N.A. N.A.




Alok Industries Ltd. N.A. N.A. N.A. N.A.


Crompton Greaves Ltd. 28,111.4 29,241.7 29,718.3 33,873.0

Welspun Corp Ltd. 25,497.2 20,606.3 28,518.8 33,163.5

NMDC Ltd. 28,379.0 26,118.4 20,468.3 32,021.0


Havells India Ltd. 17,778.0 16,992.0 18,143.0 19,305.0


Jindal Saw Ltd N.A. N.A. N.A. N.A.


N.A. 3,144.1 3,635.8 4,339.3

Voltas Ltd. 16,766.5 11,601.0 11,501.7 15,922.2


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Jain Irrigation Systems Ltd. N.A. N.A. N.A. N.A.

QuarterlyFinancialResultsIncome(INRmn)

CompaniesApr-Jun

2012

Jul-Sep

2012

Oct-Dec

2012

Jan- Mar

2013

Oil and Natural Gas Corp. Ltd. N.A. N.A. N.A. 242,196.4

Hindalco Industries Ltd. N.A. N.A. N.A. N.A.

Coal India Ltd. 44,692.6 30,780.8 43,951.1 54,139.1

Gail India Ltd. N.A. N.A. N.A. N.A.

Bharat Heavy Electricals Ltd. N.A. N.A. N.A. N.A.




Alok Industries Ltd. N.A. N.A. N.A. N.A.

Ashok Leyland Ltd. 669.4 1,426.0 741.4 1,500.3

Crompton Greaves Ltd. 859.0 420.5 (1,893.6) 252.7

Welspun Corp Ltd. 74.7 43.6 (805.9) (15.7)

NMDC Ltd. 19,060.0 16,786.2 12,928.0 14,649.5

JBF Industries Ltd. 337.0 494.3 298.4 5.1

Havells India Ltd. 713.0 2,423.0 1,178.0 1,500.3

National Aluminium Co. Ltd. 2,230.8 47.8 1,189.4 2,460.3


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Jindal Saw Ltd N.A. N.A. N.A. N.A.

DCM Shriram Consolidated

Ltd. (DSCL)

N.A. 288.8 607.5 823.3

Voltas Ltd. 640.1 429.3 768.1 89.2

Jain Irrigation Systems Ltd. N.A. N.A. N.A. N.A.

EventsCalendar

ManufacturingExcellenceMission,Indore

Date: 6th 7th Aug 2013Venue: VE Commercial Vehicles Ltd, Force

Motors Ltd, Cummins Turbo Technologies &Kirloskar Brothers, Indore, Madhya Pradesh,India

Contact Person: Mr Gaurav LambaContact No: +911352745120Organizer: Confederation of Indian IndustryWebsite:http://www.cii.in

NorthEastMSMEConclave-2013

Date:22nd 23rd Aug 2013

Venue: NEDFi House, Guwahati, Assam, IndiaContact Person: Ms. Nandinee Kalita

Contact No: +913612731966Organizer: Confederation of Indian IndustryWebsite:http://www.cii.in


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manufacturing and construction sector in india monthly update july 2013

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