Automotive and Transport Sector in India April 2013

7/30/2019 Automotive and Transport Sector in India April 2013

http://slidepdf.com/reader/full/automotive-and-transport-sector-in-india-april-2013 1/17

Automotive and Transport

Sector in India

Monthly

Update

April 2013



Sector Name – Monthly Update

Top Story

Shipping Industry to get 30 port projects in FY2013

The Shipping Ministry plans to award 30 projects with an investment of INR 246.33 bn in

FY2013. These projects will add 288.48 mn tonne capacity to the shipping industry.

The ministry had shown phenomenal performance in the previous fiscal year which has

resulted into setting this target. In FY2012, the ministry awarded 32 Projects with an

investment of INR 67.66 bn. These projects were expected to add a capacity of 136.75 mn

tonne per annum (MTPA). By 2020, shipping industry is likely to create port capacity of

3,200 MTPA from current capacity of over 1,000 MTPA.

Any deficit in ports facilities will affect the country’s trade as well as the competitiveness of

its industries as ports are the gateways for export‐import trade. Hence, it is expected that allthe major ports will achieve the targets for the current year.

New supplier of SUVs to the Indian army – Tata, Mahindra or Nissan

Indian army currently owns a fleet of 27,000 Maruti Gypsy vehicles. However, it is evaluating

prototypes of Sports Utility Vehicles (SUVs) from other auto majors, such as Tata Motors,

Mahindra & Mahindra Limited and Nissan for replacing the old Maruti Gypsy models. After

completing the full assessment of the prototypes based on all the technical grounds, Indian

army will ask for price quotes from the mentioned players.

The models that have been offered include Tata model based on its Safari Storme platform,Mahindra model based on its flagship Scorpio SUV and Nissan model based on its X‐Trail

premium SUV platform.

Indian army will adopt a phased approach for replacing the Maruti Gypsy models starting

from the year 2017. It has plans of investing INR 30 bn for 30,000 4x4 off‐road capable

vehicles which fall into 800 kg category, more than the existing 500 kg Maruti Gypsy.

Besides, the model should be powered by a minimum 120bhp diesel engine along with being

Bharat Stage III and IV compliant.

News Update

General FedEx - Printo alliance for shipping site program




FedEx Corporation has partnered with Bangalore based print solutions startup Printo. Printo

having 12 high street retail locations in Bangalore will aid FedEx to use these retail locations

as a shipping site. This partnership will boost the retail footprint of FedEx in India.

This alliance will allow customers to print their merchandise at Printo and ship it directly

with FedEx. In addition, customers can also use their outlets for all kinds of shipping needs.

Owing to a slowdown in its business FedEx is focusing more on domestic logistics operations.

Government dissolves shipping corp - IRISL JV

The 38‐year old shipping joint venture between state‐run Shipping Corporation and Islamic

Republic of Iran Shipping Lines (IRISL) has been dissolved by the government.

This decision has resulted as the shipping company was unable to get any business after

2010 UN sanctions on IRISL for aiding Iran's nuclear program. The Shipping Corporation of

India had a 49% stake, while the Islamic Republic of Iran Shipping Lines held the remaining51%. The two companies will split the assets of the company in the ratio of their

shareholding.

ChPT to rework bulk cargo terminal plan

The Cochin Port Trust (ChPT) plans to rework its bulk cargo terminal plan on quays 8 and 9

of Ernakulam wharf. This independent modification by ChPT has resulted due to the lack of

interest among potential private partners called for this project. The terminal plan project

involved about INR 2.5 bn investment.

The plan will now focus on developing a 14.5 metre quayside to attract large ships. It wants

to establish itself as the only major port in the country to offer such draught for bulk cargolike coal and fertilizer.

MoU for vessel repair in Indian shipping industry

The Memorandum of Understanding (MoU) has been signed among Cochin Shipyard Ltd.

(CSL), Union Territory of Lakshadweep (UTL) and Lakshadweep Development Corporation

Ltd. (LDCL), the three major bodies of Indian shipping industry. The shipping industry

witnesses this deal for repairs of ships owned by UTL.

The MoU is expected to ensure uninterrupted availability of the ships of UTL for the service

of the islanders. All UTL vessels are presently being operated by LDCL. A tentative schedule

for repairs of all their vessels is required to be submitted by November every year to CSL.This shows the approximate schedule and repair duration of vessels in the ensuing year.

Shipping industry gets concession agreement signed between Chidambaranar Port

and Transstroy

V O Chidambaranar Port, one of the largest economic engines of southern shipping industry

has signed a concession agreement with Transstroy ‐ OJSC Consortium. This deal will

facilitate the port to develop north cargo Berth‐IV. The port will further construct shallow




draught berth to handle cement and related raw material. The estimated cost of the project

to develop north cargo berth‐IV is INR 3.55 bn and shallow draught berth INR 840.8 mn.

By implementing various capacity augmentation projects in the inner Harbor, the port aimsto raise its capacity from 33.34 MT to 85.73 MT. These projects will cater to bulk cargo needs

of hinterland industries. The agreement with a 30 year concession period will aid the

shipping industry in implementing the projects through PPP mode on DBFOT basis (Design,

Build, Finance, Operate and Transfer).

Honda to stop the production of Civic in India

Honda Car India has plans of stopping the production of its Civic sedan owing to the

declining sales of ~70% to 685 units in FY13 over the previous year. It is not feasible to

continue with the production of the Civic model as sales have been steadily falling over the

last three years as other models, such as City are more popular among the Indian consumer.

Honda has managed to sell only 50,000 units of the Civic model since its launch in 2006.

Honda holds the fifth position, accounting for a share of 3.9% of the total passenger car

market in India. The company primarily uses two platforms for developing cars for the

Indian automotive market. The Brio platform includes the Brio, the Amaze and the yet to be

launched seven‐seater multi‐purpose vehicle (MPV). The Jazz platform consists of the Jazz,

the City and the yet to be launched compact sports utility vehicle (SUV) in the Indian

automotive market, which has been recently introduced at the Detroit Auto Show. Company

has plans of investing INR 25 bn for setting up diesel engine plant, a foundry and a car

manufacturing facility with a production capacity of 0.12 mn units in India.

News Update

Expansion Plans Kakinada port to invest over INR 6 bn for expansion

Kakinada Deep Water Port plans to deepen the entrance channel to 16 metre from the

present 14 metre. An amount of INR 6.5 bn will be invested over the next two years. The

dredging project will be complete by Dec 2014.

This expansion will facilitate the port to allow up to 150,000 DWT (deadweight tonnage)vessels as against current capacity of only 70,000 DWT vessels. Further the port will also be

able to increase its cargo handling capacity. In addition, customers, who hire larger vessels,

will also be benefited as freight charges would come down.

Indian logistics market to get good funding with Tano capital investing INR 800 mn in

Shree Shubham Logistics




Shree Shubham Logistics, one of the leading players in Indian logistics market will get

funding from private equity fund Tano Capital. Tano will invest INR 800 mn in Shree

Shubham which will be used for its capacity expansion. A differentiated and scalable

business model in the agri‐logistics space has attracchted Tano Capital to invest in thecompany.

The agri logistics company, Shree Shubham will use this funding for implementing expansion

plans in Maharashtra, Rajasthan and Madhya Pradesh. The company is currently operating

and managing 90 warehouses with storage capacity of around 1.1 mn tonne. It wants to

expand in the Indian logistics market by increasing its capacity to 1.5 mn tonne by 2013 and

2 mn tonne by 2015‐16.

Honda launches ‘Dream Neo’ in the Indian automotive market Honda Motorcycle, the second largest two‐wheeler company in the Indian automotive

market, has rolled out its new 110 cc motorcycle, called the Dream Neo. It is Honda’scheapest two wheeler model available in the country, priced at INR 43,150 (ex‐showroom

Delhi). It is Honda’s second bike in the Dream series. It offers a mileage of 74 km/litre. It is

powered by 110cc, air‐cooled, 4‐stroke engine from the Dream Yuga model, producing 8.25

BHP of raw power at 7500 rpm. It is available in 6 dual tone colors.

Additional new features include maintenance‐free battery, high ground clearance of 179 mm,

six‐spoke alloy wheels and drum brakes along with an alternate front disc brake on the top

end variant.

Honda has plans of selling 300,000 units of Neo and overall 800,000 units of two wheelers

under its Dream series in FY14. Company is expecting Neo to provide stiff competition toHero MotoCorp's Splendor, which is the second largest selling bike in India. Besides,

company has plans of increasing its sales outlets to ~2,500 by the end of this fiscal.

Industry Expert Speak

Shipping Industry to get 30 port projects in FY2013–Mr. G. K. Vasan – Shipping Minister “The achievement of the Ministry during 2012‐13…Has been outstanding… This is the best

performance for any year in the history of Major Ports… We have finalized the Action Planfor this year (2013‐14) and a target of 30 Port Development Projects has been fixed.”

30% excise duty on SUVs – Pawan Goenka – President Automotive Sector, M&M "The tax is not only putting an extra burden on the industry but it also is distorting the

playing field because certain vehicles in the same price range will bear the 3% extra duty and

others will not. Some SUVs are taxed, some are not. It is becoming very arbitrary and is

creating a distortion in the industry, which is not desirable. It is being said that because SUVs




run on diesel, they are being taxed extra. If that is the case then one should take the bull by

the horn and tax all diesel vehicles."

Automotive : Transactions (Feb 2013 – Apr 2013)

Date Buyer Target Deal Size

(INR mn) %

stake

Deal Status Type of

Transaction

25th Apr2013

DensoCorporation

Pricol ComponentsLimited

51 51% Completed M&A

22nd Apr2013

MindaIndustries

Limited

Clarton Horn S.A.U. 474 100% Completed M&A

15th Apr

2013

Technocraft Industries

(India)Limited

Swift Engineering

Inc.‐ 100% Completed M&A

12th Apr2013

Metallurgica

Siderforges.r.l.

AMW‐MGM

Forgings PrivateLimited

1600 ‐ Completed M&A

11th Mar

2013

Amtek Auto

Limited

Neumayer Tekfor

Group27,170 ‐ Pending M&A

11th Feb

2013

MahindraDefence

SystemsLimited

Defence LandSystems India

Private Limited‐ 26% Pending M&A

25th Feb2013

WayzataRamkrishna

Forgings Limited500 13.35% Pending M&A




Transport: Transactions (Feb 2013 – Apr 2013)

Date

Buyer

Target

Deal Size

(INR mn) %

stake

Deal Status

Type

of

Transaction

29th Apr

2013

DTDC Courier

& Cargo Ltd.

Nikkos Logistics

Pvt. Ltd.N.A. 70% Completed JV

21st Feb

2013TVS Logistics Rico Logistics 1,000 85% Completed M&A

5th

Feb2013 GatewayDistriparks

Chandra CFS And

TerminalOperators Private

Limited

265 100% Completed M&A

Automotive: Annual Financial Results – Revenue (INR mn)

Companies FY ‘09 FY ‘10 FY ‘11 FY ‘12

Apollo Tyres Limited 49,945.4 81,316.1 88,743.5 121,532.9

Balkrishna Industries Limited 13,998.6 15,637.3 21,920.9 N.A.

Ceat Limited 23,870.1 28,517.8 36,037.5 N.A.

Electrotherm India Limited 16,827.8 20,073.5 24,015.6 N.A.

Falcon Tyres Limited* 6,048.6 8,222.6 9,797.5 N.A.

Indag Rubber Limited 762.789 1,117.105 1,499.396 2,161.262

JK Tyres Limited 39,862.8 45,846.8 59,786.0 69,127.2

Kabirdass Motor CompanyLimited

26.048 32.05 N.A. N.A.

Kesoram Industries Limited 39,305.6 47,615.3 54,223.6 59,033.8




Mahindra & Mahindra Limited 269,197.6 316,879.2 370,254.4 582,414.0

Modi Rubber Limited* 862.47 4,036.718 660.889 N.A.

MRF Limited 56,924.9 74,750.8 97,645.5 N.A.

Tata Motors Limited 708,809.5 925,192.5 1,231,333.0 1,648,545.2

TVS Srichakra Limited 5,773.5 7,024.7 10,921.6 N.A.

Vamshi Rubber Limited 9.926 19.507 22.505 N.A.

* Change in Financial Year Ending

Annual Financial Results – Income (INR mn)



Balkrishna Industries Limited 744.0 2,190.4 1,946.3 N.A.

Ceat Limited ‐161.1 1,624.8 264.7 N.A.

Electrotherm India Limited 527.9 533.2 89.7 N.A.

Falcon Tyres Limited* 299.7 453.3 154.6 N.A.

Indag Rubber Limited 76.211 115.736 107.525 208.713

JK Tyres Limited ‐1,492.6 2,235.2 659.1 ‐319.9


0.974 ‐6.811 N.A. N.A.

Kesoram Industries Limited 3,787.3 2,373.4 ‐2,102.1 ‐3,797.4





Modi Rubber Limited* 554.057 ‐212.616 364.59 N.A.

MRF Limited 2,507.8 3,575.0 6,187.7 N.A.

Tata Motors Limited ‐25,052.5 25,710.6 92,736.2 135,165.0

TVS Srichakra Limited 89.7 298.2 391.4 N.A.

Vamshi Rubber Limited 492.242 548.011 660.329 N.A.


Quarterly Financial Results – Revenue (INR mn)

Companies Oct -Dec

2011

Jan-Mar

2012

Apr-Jun

2012

Jul-Sep

2012


Balkrishna Industries Limited 7,587.7 N.A, N.A. N.A.

Ceat Limited 10,654.4 N.A. 12,249.7 12,130.26

Electrotherm India Limited 3,189.1 N.A. N.A. N.A.

Falcon Tyres Limited N.A. N.A. N.A. N.A.

Indag Rubber Limited 574.5 565.5 589.0 626.8

JK Tyres Limited 14,229.4 N.A. N.A. N.A.


N.A. N.A. N.A. N.A.

Kesoram Industries Limited 15,529.8 15,669.3 15,041.1 14,161


Modi Rubber Limited N.A. N.A. N.A. N.A.




MRF Limited 28,754.9 N.A. N.A. N.A.

Tata Motors Limited 451,992.9 514,086.1 431,711.3 428,189

TVS Srichakra Limited 3,494.5 N.A. N.A. N.A.

Vamshi Rubber Limited 201 198.8 219.3 218.9

Quarterly Financial Results – Income (INR mn)

Companies Oct

-Dec

2011

Jan-Mar

2012

Apr-Jun

2012

Jul-Sep

2012

Apollo Tyres Limited 980.4 1,569.6 1,380.2 1,522

Balkrishna Industries Limited 728.8 N.A. N.A. N.A.

Ceat Limited 23.9 N.A. 290.1 38

Electrotherm India Limited ‐1,323.9 N.A. N.A. N.A.

Falcon Tyres Limited N.A. N.A. N.A. N.A.

Indag Rubber Limited 53.1 65 66.5 58.5

JK Tyres Limited ‐213.1 N.A. N.A. N.A.

Kabirdass Motor Company

LimitedN.A. N.A. N.A. N.A.

Kesoram Industries Limited ‐2,756.4 2,288.3 ‐959.6 ‐540.3

Mahindra & Mahindra Limited 8,318 9,505.6 10,263.6 9,780.9

Modi Rubber Limited N.A. N.A. N.A. N.A.

MRF Limited 1,128.9 N.A. N.A. N.A.

Tata Motors Limited 34,055.5 62,340.0 22,449.1 20,747.3




TVS Srichakra Limited 66.4 N.A. N.A. N.A.

Vamshi Rubber Limited 0.350 5.348 2.136 4.767

Transport: Annual Financial Results – Revenue (INR mn)


ABC India Ltd. 1,585.70 1,466.10 2,059.10 N.A.

ABG Shipyard Ltd. 14,130.00 18,124.40 21,369.00 24,238.30

Allcargo Logistics Ltd.* 20,609.30 28,613.40 33,963.00 35,396.40

Aqua Logistics Ltd. 2,134.00 3,220.10 3,808.80 3,683.00

Arshiya InterN.A.tioN.A.l Ltd. 5,033.80 5,258.90 8,215.20 10,467.50

Bharati Shipyard Ltd. 10,199.00 13,480.00 16,090.00 11,024.00

Blue Dart Express Ltd. 9,075.40 11,499.00 14,922.70 N.A.

Brahmanand Himghar Ltd. 66.455 48.855 42.362 N.A.

Chartered Logistics Ltd. 1,356.95 1,235.43 1,841.89 2,564.20

Chowgule Steamships Ltd. 2,376.32 910.927 839.649 856.97

Container Corporation of IndiaLtd.

34,524.00 37,306.00 38,924.70 40,609.50

Deutsche Post AG 3,090,430.50 3,089,543.00 3,659,847.70 N.A.

Essar Ports Ltd. 25,830.80 30,077.70 13,919.30 11,088.10

Four Soft Ltd. 1,945.93 1,329.60 1,219.06 1,280.58

Gateway Distriparks Ltd. 4,520.00 5,180.40 6,024.60 8,214.50




Gati Ltd. 7,904.10 9,261.10 12,094.40 N.A.

Global Offshore Services Ltd. 1,632.25 2,124.12 1,968.17 2,335.70

Great Eastern ShippingCompany Ltd.

41,239.30 30,755.10 25,850.30 29,342.50

Gujarat Pipavav Port Ltd. 2,207.10 2,839.30 3,967.70 N.A.

Mercator Ltd. 22,105.10 18,087.30 28,316.80 36,999.10

Seamec Ltd. 471.213 1,419.55 ‐671.66 ‐131.9

Shreyas Shipping and LogisticsLtd.

55.86 ‐157.05 127.77 56.3

Sical Logistics Ltd. 180.1 ‐356.3 ‐80.3 139.9

SKS Logistics Ltd. 0.77 ‐81.87 32.65 8.889

The Shipping Corporation of

India Ltd.9,406.70 3,769.10 5,673.50 ‐4,282.10

Transport Corporation of IndiaLtd.

332.6 412.7 501.3 595.00

Varun Shipping Co. Ltd. 1,240.30 ‐1,528.80 147.5 91.80


Annual Financial Results – Income (INR mn)


ABC India Ltd. 43.3 8 54.9 N.A.

ABG Shipyard Ltd. 1,711.60 2,181.20 2,047.10 1,856.70

Allcargo Logistics Ltd. 1,299.50 1,659.20 2,228.70 2,345.90

Aqua Logistics Ltd. 111.5 205.4 223.9 82.9




Arshiya InterN.A.tioN.A.l 656.2 983.1 820.1 1,176.40

Bharati Shipyard Ltd. 1,334.80 1,303.50 1,043.80 59.50

Blue Dart Express Ltd. 611.9 947 1,241.90 N.A.

BrahmaN.A.nd Himghar 0.68 0.68 0.829 N.A.

Chartered Logistics Ltd. 15.85 40.26 78.21 61.2

Chowgule Steamships 1,175.67 766.64 276.93 ‐1,058.55

Container Corporation India

Ltd.7,791.50 7,776.30 8,763.70 8,778.80

Deutsche Post AG 42,834.90 151,983.00 80,174.90 N.A.

Essar Ports Ltd. 772 937.7 362.9 639.2

Four Soft Ltd. 447.25 76.65 30.942 ‐426.38

Gateway Distriparks Ltd. 795.8 791.4 967.5 1,320.30

Gati Ltd. ‐186.6 95 141 N.A.

Global Offshore Services 411.49 412.2 222.24 256.1


14,178.30 5,127.60 4,687.00 3,165.50

Gujarat Pipavav Port Ltd. ‐1,163.90 ‐547.2 571 N.A.

Mercator Ltd. 3,764.50 532.4 940 205.6


802.9 860.2 873.0 N.A.

Sical Logistics Ltd. 1984.2 1751.2 1955.3 1,959.60

SKS Logistics Ltd. 80.4 53.9 53.8 N.A.

The Shipping CorporationIndia Ltd.

10257.0 11549.5 10259.1 10,109.70

Varun Shipping Co. Ltd. 803.6 647.0 N.A. N.A.





Quarterly Financial Results – Revenue (INR mn)

Companies Jan-Mar 2012

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

ABC India Ltd. 585.1 475.0 N.A. N.A.

Allcargo Logistics Ltd. N.A.* 9751.9 10136.6 9,726.30

Aqua Logistics Ltd. 786.4 773.1 783.2 765.9

Arshiya International Ltd. 3204.4 3418.4 3725.7 N.A.

Bharati Shipyard Ltd. N.A. N.A. N.A. N.A.

Brahmanand Himghar Ltd. 2.7 4.3 6.8 7.685

Chartered Logistics Ltd. 761.2 708.2 655.3 550.3

Deutsche Post AG 915677.6 974856.6 939484.4 N.A.

Essar Ports Ltd. 2883.1 3245.0 3439.8 3659.7

Four Soft Limited 346.2 325.0 352.6 346.3

Gateway Distriparks Ltd. 2435.2 2304.1 2158.9 2,340.10

Gati Ltd. N.A. N.A. 2980.3 3,268.90

Global Offshore Services Ltd. 684.6 693.7 528.2 606.1

Great Eastern ShippingCompany Ltd. 8435.2 8024.2 6577.9 7,518.10

Gujarat Pipavav Port Ltd. 925.8 849.1 864.7 N.A.

Mercator Ltd. 10195.0 10952.0 8222.6 8,093.50


802.9 860.2 873.0 N.A.




Sical Logistics Ltd. 1984.2 1751.2 1955.3 1,959.60



10257.0 11549.5 10259.1 10,109.70

Varun Shipping Co. Ltd. 803.6 647.0 N.A. N.A.

Quarterly Financial Results – Income (INR mn)

Companies Jan-Mar 2012

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

ABC India Ltd. 6.2 0.7 N.A. N.A.

Allcargo Logistics N.A.* 556.0 592.1 360.8

Aqua Logistics Ltd. ‐32.2 15.0 15.5 13.7

Arshiya International Ltd. 308.7 346.2 354.3 N.A.

Brahmanand Himghar ‐1.4 ‐2.3 3.3 4.244

Chartered Logistics Ltd. ‐22.5 40.0 ‐12.9 17.5

Deutsche Post AG 36165.7 14173.3 25932.7 N.A.

Essar Ports Ltd. ‐615.1 685.2 805.3 904.2

Four Soft Ltd. ‐477.3 27.6 46.6 34.1

Gateway Distriparks Ltd. 320.2 352.0 298.3 280.3

Gati Ltd. N.A. N.A. ‐77.9 50.6

Global Offshore Services Ltd. 95.2 397.9 39.8 96.3


391.9 1809.9 812.0 1,918.40




Gujarat Pipavav Port 140.8 157.3 81.7 N.A.

Mercator Ltd. ‐243.0 170.7 53.1 ‐2,292.60


64.6 67.4 7.1 N.A.

Sical Logistics Ltd. 68.4 13.7 2.2 5.8



‐3558.5 ‐548.7 2972.6 ‐752.6

Varun Shipping Co. Ltd. ‐1384.6 1452.2 N.A. N.A.

Events Calendar

India Transport & Logistics Show 2013

Date: 2nd – 4th May, 2013Venue: Pragati Maidan, New Delhi, India

Website: www.reedexpo.com

India Auto Expo 2013

Date: 23rd – 26th May, 2013

Venue: Chennai Trade CentreCity: Chennai

Organizer: Vijay Shanthi Exhibitions Pvt. Ltd

Website: www.indiaautoexpo.in/



Sector Name –Monthly Update

Research on India (ROI) is a leading source for market research on various sectors in India

that offers premium research content from worldwide publishers of market research

reports.

Contact us:

W: www.researchonindia.com

T: India (Toll Free): 1800 102 1133; International: +91 (33) 4027 6214/5

E: [email protected]

Connect with Us

Disclaimer: This monthly update is published for general information only based on press articles

and

company

releases.

Research

on

India

has

not

independently

verified

any

of

information and is not responsible for any loss or damage arising from use of this document.

http://www.linkedin.com/groups?gid=3280715&trk=hb_side_g

https://twitter.com/ResearchOnIndia

https://www.facebook.com/researchonindia

Documents

Automotive and Transport Sector in India April 2013