manufacturing and construction sector in india monthly update may 2013

7/28/2019 Manufacturing and Construction Sector in India Monthly Update May 2013

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Manufacturing and

Construction Sector in India Monthly Update

May 2013



Manufacturing and Construction – Monthly Update

Top Story

Indian foundry

industry

faces

huge

export

loss

Foundry units in India can lose out on exports worth INR 110 bn to countries such as Chinaand Taiwan owing to the imposition of import duty on metal scrap. Metal scrap is a crucialraw material used in the production of critical equipment for the heavy engineering sector.Import duty of 2.5 percent has been levied on different scrap imports such as aluminum,stainless steel, iron and steel.4 percent of additional duty has also been levied on scrap usedin the production of brass artifacts.

Imposition of this duty will result in an inverted duty structure since metal produced fromscrap by the Free Trade Agreement countries are duty free while duty is being levied on theimport of scrap by the manufacturers.

The levy of import duty is a major counter productive step that will lead to a reduction inusage and trade of scrap. It will also add to carbon emissions as scrap recycling is 40 percent less energy intensive.

News Update General

Closure of

copper

smelters

to

affect

the

cables

production

Cable manufacturing units in India are witnessing severe shortages in supply of copper andpossible delay in production following the closure of two major copper smelters. This has ledto a rise in both prices and imports of copper. Sterlite Industries shut down their smelter unit in March following complaints from local residents about emissions that led to breathingtroubles. Major users of copper then had to rely on Hindalco to meet their requirement.However, routine shutdown of the Hindalco smelting unit has triggered fears among thecable producers about relying on costly imports or slow rate of production.

Sterlite and Birla smelter units add to about 90 percent of the total copper production of 6,90,000 tonnes. Electrical and telecom sector account for more than half of the country’s

annual copper consumption of 610,000 tonnes.

Indian Mining Consortium seeks funds for Afghan iron ore project Mining consortium led by Steel Authority of India Ltd. is trying to seek funds of around INR3.7 bn to develop a mining and steel making project in Afghanistan. The consortium consistsof seven Indian mining and mineral companies. A high level government committee has beenset up and it would look into extending funds on concessional terms for the explorationoperations on the Afghan project.




Through the concessional loan the Consortium will start the geological surveying andexploratory work of the 2 billion tonne Hajigak iron ore reserves. The Consortium also hasplans to develop a small steel making facility of 1 mn tonnes to 2 mn tonnes a year.

News Update

Expansion Plans

Metso expands production capacity Metso has invested INR 400 mn to expand the production capacity of its Ahmadabad foundryunit. The expansion will help the company to meet the requirements of wear parts of themining and construction customers near to their operations and develop their business

services. Ahmadabad production unit of the company was acquired in the year 2000 and it had begun production in 2001.

Tata -Hitachi plant to emerge as global hub Kharagpur plant of joint venture company Tata‐Hitachi is set to emerge as the global hub forsmall and medium sized excavators. 20‐ton class hydraulic excavator manufactured at theKharagpur plant was launched recently. Company plans to service Middle East, African andSouth East Asian markets.

Tata‐Hitachi (formerly known as Telcon) is a joint venture between Tata Motors and HitachiConstruction Machinery of Japan. The joint venture company has a 38% market share in the

Indian excavator market. Two other manufacturing units of the company is located inJamshedpur and Dharwad in Karnataka.

Sandvik Asia plans to foray in the Indian construction equipment market Construction Equipment major Sandvik is planning to increase its market penetration andmarket share in the Indian market. Company has announced plans to acquire 50 acres of landfor Sandvik Asia Pvt. Ltd. near Pune and make significant investments by 2016. A new plant to manufacture construction equipment and infrastructure machinery is expected to beoperational by 2015.

Sandvik recently launched a locally designed 160 D Surface Rock Drill was to cater to the

medium sized industries operating in the Indian market. Company plans to focus primarilyon the construction equipment business out of other verticals like mining, machiningsolutions, materials technology.

Tetra Pak opens new packaging plant in Chakan Switzerland based packaging manufacturer has set up a new processing and packaging plant in Chakan, in Maharashtra. The plant has been set up to meet the Tetra Pak packaging andprocessing requirements across India, South and Southeast Asia and the Middle East. The




new unit is quipped with modern technologies, straw production unit, a processing systemsworkshop, a filling machine renovation and a technical training academy.

The new unit is expected to increase the packaging material capacity of the company toincrease the packaging material capacity of the company to 8.5 bn packages per annum andcapacity to scale up to 16 bn packages. Product formulation and development needs of thecompany are also met by a product development and innovation center with a laboratory, apilot processing plant and a pilot packaging plant.

Industry Expert Speak

Autralian firms show interest in CIL opencast mines – A K Anand , Foundry Informatics Centre “India imported 45,405 tonnes of aluminium alloy in 2010‐11 from Thailand. Thesecountries enjoy the advantage of not only duty‐free imports of aluminium scrap, but also theadvantage of lower energy and finance cost than India. With the present levy of 2.5 per cent duty on the imports of metal scrap, coupled with duty‐free imports of aluminium alloy andother components from Thailand and other Asean FTA countries, the foundry industry inIndia will be quickly driven out of business, which will adversely affect the employment of millions in this industry,”

Transactions (Mar 2013 – May 2013)

Date Buyer Target Deal Size (INR mn) % stake Deal Status Type of

Transaction

22 nd May2013 JSW Ispat Heidelberg

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

22 nd May2013

Mitsubishi‐Hitachi MetalsMachinery, Inc.

Concast India Ltd. N.A. N.A. Completed M&A

9 th Apr2013 Amcor

Ess DeeAluminium 20,000 N.A. Pending M&A

28 th Mar2013 WPIL Mody Industries N.A. N.A. Completed M&A




Annual Financial Results – Revenue (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY ‘13

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

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

Annual Financial Results – Income (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY ‘13

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

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)

DCM Shriram Consolidated

Ltd. (DSCL)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

Quarterly Financial Results – Revenue (INR mn)

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.

DCM Shriram ConsolidatedLtd. (DSCL) 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

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

Quarterly Financial Results – Income (INR mn)

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. 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

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

DCM Shriram ConsolidatedLtd. (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.

Events Calendar

Workshop on Service Tax for MSME Date: 14 th Jun 2013Venue: Confederation of Indian Industry,Conference room, 6 N S Road, Kolkata ‐700001,Kolkata, West Bengal, IndiaContact Person: Partha Pratim GhoshContact No: + +91‐3224‐266121 / 262805Organizer: Confederation of Indian IndustryWebsite: http://www.cii.in

Manufacturing Innovation Conclave Date: 21 st Jun 2013Venue: India Habitat Centre, Hall ‐ Silver Oak (Entry from Gate No. 3), Lodhi Road, New Delhi ‐110003, IndiaContact Person: Mr Deepak SidhaContact No: + 91‐124‐4014060‐67Organizer: Confederation of Indian IndustryWebsite: http://www.cii.in




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manufacturing and construction sector in india monthly update may 2013

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