...27 March 2012 India Tractors The growth story continues continues…. Mayur Milak (+91 22 ) 4096 9749 mayurm@dolatcapital.com mayurm@dolatcapital com 1 Executive summary Why did we do a follow-up report on tractors NOW ? The tractor industry has grown at a CAGR of ~12% during last five years. After a splendid performance, during the last two to three years, the Indian tractor industry is believed to head for a slow-down , we believe otherwise and hence our stance to b buy i into tractor at this j hi juncture. Our takeaways: There is an increasing lack of cheap farm labour due to migration to urban areas, leading to more mechanisation. Further, f F h farm i income h has grown at a CAGR of 12 8% d i f 12.8% during l last fi five years. W expect this growth to sustain going We hi h i i forward, which will continue to boost tractor sales. Contrary to popular belief, rainfall does not affect tractor sales directly. Other factors such as higher farm income, availability of water (irrigation facilities), cheaper and more easily available finance, successful implementation of government schemes (NREGA) and higher MSP are the key drivers for growth in tractor sales. We expect tractor demand to grow by 11-12%, going forward. All key drivers are in place and adequate availability of water is expected with a forecast of regular and timely rainfall. Our top-pick: M&M top pick: M&M has always been a leader in the farm equipment sector. After acquiring Punjab Tractors Limited (PTL), it has...
Words: 8383 - Pages: 34
...time-share results, and instrumentation along with jeeps and tractors. In 1991 the Harvard educated scion told M&M that they would not continue business with them if they didn’t have global potential, resulting in the businesses being regrouped into four strategic business units (SBUʼs) such as; automotive, farm equipment services, IT services and trade and financial services. The company anticipated an economic downturn in the tractor industry that resulted in M&M creating the Operation Blue Chip. The drive was launched in 2000 and later in 2001 the domestic market for tractors collapsed as expected, and M&M was the only tractor company in the Indian industry that made profits. India was the worlds second largest tractor manufacturer and in the 1990s the country was expanding to more competitive markets such as the United States. M&M capitalized quickly on this opportunity and set up an assembly plant in Tomball, Texas in 1994. Elsewhere, the Indian tractor industry categorized 13 players in the Indian tractor industry on the basis of power delivered by the engines horsepower that also included three multinational corporations; New Holland, John Deere, and SAME. Because of an emphasis by the federal government on increasing share of agricultural in the gross domestic product, the flow of farm credit had been rising over the years, contributing to one of the several growth drivers in the Indian tractor industry. Agricultural businesses were entering alliances with farmers...
Words: 2066 - Pages: 9
...INTRODUCTION: Fundamental analysis of a business involves analysing its financial statements and health, its management and competitive advantages, and its competitors and markets. Fundamental analysis includes the economic analysis, industry analysis and the company analysis. There are certain factors that are to be considered while doing the fundamental analysis and it includes Financials of the company It involves the study of financial health of the company using the various financial reports, like the profit and loss account, the balance sheet, and the cash flow statements. State and direction of domestic economy This is a study of the country’s economy in which the company operates. If the economy is growing fast, the probability of the company growing fast is greater. Similarly, if the economy is facing a slow growth, the chances of the company growing fast are lesser. Currency & commodity price movements Most companies use commodities like coal, metals and crude oil as their inputs. 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...
Words: 1765 - Pages: 8
...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...
Words: 1295 - Pages: 6
...Share overview 3. Overview of the market and Customer’s ( Maximum 2 pages ) 4. Overview of the competition( Maximum 2 pages ) 5. Micro and Macro Environment Analysis ( Maximum 3 pages ) 6. Marketing Strategy (Consider the points which ever are applicable to your product/ service , minimum 10 to maximum 20 pages ) vi. Product Strategy vii. Pricing Strategy viii. Promotional Strategy ix. E marketing Strategy x. Sales and Distribution Strategy xi. International marketing strategy xii. Rural Marketing strategy xiii. Physical Evidence Strategy xiv. Process Strategy xv. People Strategy xvi. Marketing to BoP Overview . Ashok Leyland is an Indian automobile manufacturing company based in Chennai, India. Founded in 1948, it is the 2nd largest commercial vehicle manufacturer in India, 4th largest manufacturer of buses in the world and 16th largest manufacturer of trucks globally. Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications. It sells about 60,000 vehicles and about 7,000...
Words: 2316 - Pages: 10
...A PROJECT REPORT ON MANPOWER PLANNING OF EMPLOYEES AT HMT LTD, TRACTOR BUSINESS GROUP, PINJORE IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) 2009-2011 SUPERVISED BY: SUBMITTED BY: Mr. Kanwal Verma Khushbu Dayal Manager Personnel HMT Ltd, Pinjore ICL Institute of Engineering and Technology, Sountli ACKNOWLEDGEMENT I am indebted to HMT Ltd, Tractor Business Group, Pinjore for providing me an opportunity to undertake summer training with them and able to work on this project. It is a matter of great privilege for me to acknowledge my sincere gratitude and ineptness to my modest, gracious, eminent supervisor Mr. Kanwal Verma, Manager Personnel for his keen interest, valuable guidance, constant encouragement, enthusiastic involvement, constructive criticism and appreciation during the work, which hopefully I have inherited, has left an indelible impression in my mind and soul. With profound regards, I express my heartfelt gratitude and most sincere thanks to Mr.Kanwal Verma, Manager Personnel, Mr.Rajender Kumar HR Manager, Mr. V.K. Grover AGM(TC) and all the employees of Personnel Department...
Words: 8418 - Pages: 34
...1 Strategy Implementation Course Project - Globalization of Mahindra A Report by Group 7, Division D, MBA Core 2014-16 D037 – Karishma Mehta D038 – Ronak Mehta D039 – Tanmay Mhapsekar D040 – Amit Mirchandani D041 – Priyadarshi Mishra D061 – Rahul Tiwari 2 Table of Contents Mahindra Rise ................................................................................................................................... 1 Strategy Executed ............................................................................................................................. 1 Organic growth strategy ............................................................................................................... 1 Mergers and Acquisitions ............................................................................................................. 1 Future Targets................................................................................................................................... 2 Competition ...................................................................................................................................... 2 World’s Most Admired Global Companies ........................................................................................ 2 Analysis of Mahindra’s Current Global Scenario ............................................................................... 3 Financial Position ..................................................................
Words: 3495 - Pages: 14
...M&M South Africa Mahindra & Mahindra Ltd. (M & M) is a leading manufacturer in the utility vehicles (UVs) segment in the Indian auto industry. Since 2004, M & M exporting UVs been to South Africa is the only country on the African continent with a significant middle class population. M & M has a wholly owned subsidiary in South Africa, where it also has a service and spare parts business infrastructure and a dealer network was determined. This subsidiary enjoyed the wave of growth in the South African automotive industry to 2007, and then fell to a three-year slump, mainly as a result of a recession in the global automotive industry. (International Business Times, 2013) Mahindra and Mahindra entered South Africa by exporting automobiles in October 2004 and within six months they formally shaped their business structure by setting up a 51% subsidiary, as a joint venture with a local investment partner. Since then M&M appointed dealers in all the nine provinces of South Africa and also created a network of customer service outlets and a distribution network for spare parts. Despite the global economic downturn between 2007 and 2009, from their first step in South Africa market till now, M&M now expects to capture much larger market share with the new economic momentum both in South Africa and in other countries in the region. (Johannesburg, 2012) M&M USA Mahindra USA Inc. (Mahindra), a wholly owned subsidiary of Mahindra & Mahindra Ltd. (M&M), entered the U.S. market in 1994...
Words: 639 - Pages: 3
...never departed. Abraham Zimmerman decided to expand his little company by incorporation and selling stocks to his friends and customers. In 1895, the New Holland Machine Works became the New Holland Machine Company, a name that would carry the firm to prominence in farm Equipment Company. During the next half century, New Holland introduced highly successful machines such as Balers, Rock Crushers, Limestone Pulverizers, Conveyors, Milling Machines, Engines, Coal, Furnaces and an early rotary Lawn Mower. In 1947, New Holland Machine Company came under the ownership of Sperry Corporation; additional plants were acquired in Mountville, Belleville, Pennsylvania and Lancaster. The New Holland Machine Company was now poised to become the industry leader in grassland farming in next decade and brought 100 new products into the line, including Fertilizers spreaders, Farm wagons, crop dryers and crop drying fans. In 1970 an exciting boldness characterized the company’s performance in the form of introduction of more than 150 new and improved products of world-class technology and also engineering breakthroughs. In 1986, Ford Motor Company purchased Sperry New Holland and formed New Holland. It was a beginning of new era with Pennsylvania becoming the world headquarters of the new company and within a year Versatile Manufacturing...
Words: 833 - Pages: 4
...INDIAN AUTO COMPONENT INDUSTRY AN OVERVIEW 1 Contents 1 2 3 4 5 6 About ACMA Indian Economy Automotive Industry Auto Component Industry of India Vision 2020 Capabilities & Challenges of Component Suppliers The Way Forward 7 2 Introduction Automotive Component Manufacturers Association of India Role An apex agency of the Indian Automotive Industry auto component output in the organized sector 600+ companies forming majority of the Members Quality System ACMA operates on Quality System based on ISO 9001:2000 As Automotive Component Manufacturers Association of India in the year 1982 Re-Christened Inception In the year 1959 as The All India Automobile & Ancillary Industries Association (AIA & AIA) 3 ACMA and Its Services Promotes Indian Automotive Component Industry Trade Promotion Technology Up-gradation Quality Enhancement Collection & Dissemination of Information Vital Catalyst for Industrial Development 4 International Business Development Promote India Promote India as a Brand as a Brand Organize Business Organize Business Development Delegation Development Delegation Overseas Overseas Undertake Export Undertake Export Promotional Promotional Projects Projects Organize Participation Organize Participation in Overseas in Overseas Automobile Automobile Exhibitions & Fairs Exhibitions & Fairs Global Interaction Global Interaction through through Counterpart Association Counterpart Association ...
Words: 3209 - Pages: 13
...Supply Chain management In Automotive Industry Auto SCM India 2006, Chennai 1 Supply Chain Management Automobile Industry in the major reasons for surge in demand for automobiles in India. Domestic sales have grown at CAGR of 14.27% from 2001-02 to 2005-06. The commercial vehicle segment, in particular, has increased at CAGR of 24.35% during the above-mentioned period; whereas total sales of passenger cars in domestic market have increased at CAGR of 14.02%. In terms of production, commercial vehicles have registered a CAGR of 24.55% from 2001-02 to 2005-06; while passenger vehicles have registered a CAGR of 18.24%. There is a declining trend in mopeds production as well as in sales in the domestic market. During 2001-02, mopeds production and sales have declined at CAGR 2.93% and 5% respectively. Exports on a roll The significant development in Indian automobile sector is the outstanding growth of its exports. From 2001-02 to 2005-06, total exports of automobile sector has gone up at CAGR of 44.56%. Exports of motorcycle segment have registered highest annual growth rate of 61.42% during this period. This has clearly indicated that Indian automobile sector is going global. Chart- 2: Export Trend in Indian Automobiles (‘000 units) 900 800 700 806.49 600 Overview of Indian automobile and auto components industry Indian automobile industry is riding high with overwhelming economic growth rate of 8.4% in 2005-06. The industry has been growing at CAGR of 16.33%...
Words: 4070 - Pages: 17
...INDIAN PAINT INDUSTRY: OVERVIEW Colours have always been an integral part of the Indian culture and paint is what makes the surrounding things and the homes people live in acquire the colour of their choice. Informally, the Indians started using paint centuries ago, zhen they used herbal colours to make cave paintings and religious figurines. Formally, the Indian paint industry is more than 100 years old. Its beginning can be traced back to the setting up of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Till the end of World War II, the industry consisted of small producers and two foreign companies. After the war, the imports stopped which resulted in the setting up of manufacturing facilities by local entrepreneurs. Still, the foreign companies continued to dominate the market. Presently, the industry has around 12 major players in the organised sector and more than 2000 producers in the unorganised sector The Indian paints industry has seen remarkable changes during the last decade. In this period, almost every major multinational has established or entrenched their presence, incumbents have built on their market position and the industry has become far more sophisticated in terms of the products it manufactures, the way it sells to customers and in the range of technologies it uses. The growth of the industry is not surprising; after all, paint demand is intimately tied to GDP, which has grown at record levels for much of the decade. Overall, paint demand...
Words: 5041 - Pages: 21
...Examination Paper of Quality Management IIBM Institute of Business Management Examination Paper MM.100 Total Quality Management Section A: Objective Type & Short Questions (30 Marks) This section consists of Multiple Choice & Short Notes type questions. Answer all the questions. Part One carries 1 mark each & Part Two carries 4 marks each. Part One: Multiple Choices: 1. Which of the following techniques is used by quality Control Circles? a. Brainstorming b. Pareto Analysis c. Check Sheets d. All of the above 2. It is a means of getting a large number of ideas from a group of people in a very short time. a. Brainstorming b. Pareto Analysis c. Check Sheets d. None 3. Cause and effect diagram is an investigation tool. This is also called_____________ a. Ishikawa b. Histogram c. Both (a) & (b) d. None 4. SPC stands for______________ a. Statistical Progress Control b. Statistical Process Control c. Statistical Planning Control d. None 5. DMAIC stands for____________ 6. It is a structured process to design products and services based on the customers‟ needs. a. Quality Function Development b. Quality Function deployment c. Information 1 IIBM Institute of Business Management Examination Paper of Quality Management d. None 7. Six Sigma is a business management strategy originally developed by___________ a. Motorola b. Toyota c. Wipro d. None 8. The basic plan-do-study-act (PDSA) cycle was first developed by a. Deming b. Shewhart ...
Words: 5851 - Pages: 24
...The 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...
Words: 3324 - Pages: 14
...total cooperation of all those involved in the project .So I am very thankful to the kind persons who have helped me immensely during our whole training period. I express my deep gratitude and sincere thanks to Mr.J.C.Sinha (finance) for their valuable guidance interest and consistent encouragement to me in the preparation of this project report. I also want to extend my greatest thanks to all those who are associated and contributed in this project. HMT PROFILE- HMT is incorporated in India in 1953 by the government of India as a machine tool manufacturing company. Over the years it diversified into watches, tractors, printing machinery, metal forming presses, die casting and plastic processing machinery, CNC systems and bearings. Today if we talk about HMT, it comprises of subsidiaries under the ambit of holding company, which also manages the tractors business directly. Earlier HMT was dealing only in watches but now in deals in many other products. The product range varies accordingly- 1. HMT machine tools 2. HMT watches limited 3. HMT Chinar watches limited 4. HMT international limited 5. HMT bearing tools limited 6. Praga tools limited It was in the early post independent era that HMT began in a small way to meet a big commitment. “To manufacture mother machines to build modern industrial India” HMT was conceived by the government of India in 1949, and was incorporated in 1953 with the objective of producing a wide range of machine tools, required for...
Words: 1427 - Pages: 6
