Manufacturing and Construction Sector in India Monthly Update November 2012
Top Story
NMDC urged to increase production Following the ban on iron ore mining activities owing to rampant illegal mining, an acute shortage of iron ore is being faced by the steel and sponge iron producers of Karnataka. NMDC, run by the state government is the only miner that has been allowed to continue operations. Hence company is being urged to step up its production to meet the demand for iron ore. Around 37 steel production units in the state have stopped production owing to iron ore shortage. Several other production units are operating at less than 25% of their capacity. NMDC has been producing lower than its production limit of 12 mn tonne per annum. Current production of the company is lower than half of the set limit. Company is also being accused of non compliance to international market rates. Recent e‐auctions of the company had lower than 7% off‐take due to the high prices set by NMDC.
News Update General
India to witness growing demand for high capacity cranes Indian market has been witnessing a growing demand for high capacity cranes owing to its multiple benefits such as better maneuverability, versatility in material handling, moving heavy capacity load and several safety features. Crane market in India is evolving constantly. Modern operator free equipment with higher safety features are growing with the growth in infrastructure construction. However despite the demand for advanced cranes, pick‐and –carry cranes account for highest demand as they are cost effective and a versatile lifting solution. Haryana seeks plastic packaging for food grains Haryana government has diluted the mandatory Jute Packaging Material Act (JPMA), 1987 and sought plastic packaging for 40 per cent of wheat and other food grains produced during the Rabi season in the state. Default in supply of jute bags over the last three to four years led to the shift in demand towards plastic packaging. Other states facing a shortage in supply of jute bags include Punjab, Madhya Pradesh, UP and Bihar. Haryana and Punjab account for 35‐40 per cent of the demand for jute bags in India.
Manufacturing and Construction – Monthly Update
News Update Expansion Plans
Volvo Group to expand business in India Volvo Group has announced plans to invest INR 20 bn to expand its truck, bus and construction equipment business in India. VE Commercial Vehicles Ltd, a joint venture between Volvo Group and Eicher Motors Ltd will be investing INR 18 bn over the next few years. The new investment will be directed towards modernization of Eicher product range which will include setting up of new test facility, paint shop and new engine and bus‐body production unit. Volvo Group expects India to emerge as a major market for its products and plans to expand the size of its hub in the country. A new production unit will be set up Pithampur in Madhya Pradesh having a production capacity of 100,000 engines by 2016. Toshiba Partners with Johnson Lifts in India Toshiba has entered into a 51:49 JV with Johnson Lifts Private Limited with a view to expand its operations in the Indian elevator and escalator market. The new company Toshiba Johnson Elevators (India) Private Limited will utilize Toshiba’s technology and manufacture products belonging to the premium segment. Johnson elevators have factories in Chennai and Nagpur with a service base of 25,000 units in India. Toshiba Elevators started operations in the Indian market in Jul 2011 and has sold 100 units in the market till now. Hyundai Construction Equipment to expand product portfolio Hyundai construction equipment has announced plans to launch new products in the Indian market with a view to emerge as the second largest excavator company in India over the next four years. Roads and mining sector in India are likely to generate higher demand for excavators. Company invested around INR 4 bn in its manufacturing unit and localized 45‐50 percent of its components within the 8 tonne to 34 tonne capacity. Company is part of the USD 25 bn subsidiary of Korea based Hyundai Heavy Industries. Hind Glass commissions new unit in Andhra Pradesh Hindustan National Glass and Industries has commissioned a 650‐tonne‐per‐day (tpd) glass bottle plant at Naidupeta in Andhra Pradesh. After the establishment of the new unit the total production capacity in the region has increased to 1,000 tpd which in turn is expected to boost exports and increase market share of the company.
Manufacturing and Construction – Monthly Update
Company incurred a loss of INR 285 mn in the Jul‐Sept quarter as against a profit of INR 167 mn in the same quarter last year. Rise in cost of raw materials and constraints in implementing price hikes has resulted in operational difficulties for glass manufacturers. Brass Copper Castings launches new product range Brass Copper Castings, a flagship company of the AEX group has recently launched a new range of Copper Alloy castings which are machined using CNC lathes and machining centers. Major automotive companies and electrical OEMs based in USA and Europe have approved these CNC machined Copper castings. Product range of the company includes gun metal castings, bronze castings, stainless steel castings, sand castings, die castings etc which conforms to multiple international standards. Manufacturing unit of the company is based in Naghedi Jamnagar & is well quipped with high tech foundry and CNC turning machines.
Industry Expert Speak Hind Glass sets up new production unit is South India – Alok Taparia, General Manager of Strategy, HNGI “The current environment, marked by un‐reversing cost pressure and constraints in implementing price hikes, has put HNGI as well as others in the glass manufacturing space in a difficult situation,” Hyundai Construction Equipment to launch new products– Dheeraj Panda, Marketing Head, Hyundai Construction Equipment India “We commissioned our plant in Chakan in November 2008 and began marketing products in 2009. In less than four years, we have a market share of over 18.3 per cent and are seeking to become No. 2 in the segment by next year,"
Transaction Detail (Sep – Nov 2012)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
10th Nov 2012
Formica Laminates (India) Private Limited
Well Pack Papers & Containers Limited.
NA
NA
Expected
PE
Manufacturing and Construction – Monthly Update
9th Nov 2012
‐
Hindusthan National Glass
3,000
N.A.
Expected
PE
15th Oct 2012
Blackstone Group
International Tractors Ltd
5493.8
12.5
Completed
PE
Annual Financial Results – Revenue (INR mn) Company
FY ‘09
FY ‘10
FY ‘11
FY ‘12
1,052,756.6
1,026,655.8
1,201,955.1
1,463,705.6
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
Oil and Natural Gas Corp. Ltd.
Manufacturing and Construction – Monthly Update
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
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
Jindal Saw Ltd
Annual Financial Results – Income (INR mn) Company
FY ‘09
FY ‘10
FY ‘11
FY ‘12
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
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
Oil and Natural Gas Corp. Ltd.
Pantaloons Retail (India) Ltd.
Manufacturing and Construction – Monthly Update
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
2,514.0
3,809.9
3,572.4
1,620.6
NA*
5,495.3
4,421.8
1,891.1
1,294.4
2,475.9
2,807.1
NA
842.5
(142.7)
119.2
NA
Voltas Ltd. Jindal Saw Ltd Jain Irrigation Systems Ltd. DCM Shriram Consolidated Limited (DSCL)
*change in financial year
Quarterly Financial Results – Revenue (INR mn)
Company
OctDec 2011
Jan Mar 2012
MarJun 2012
JulSep 2012
Oil and Natural Gas Corp. Ltd.
185,171.3
NA
NA
NA
Hindalco Industries Ltd.
66,469.7
NA
NA
NA
Coal India Ltd.
153,492.8
194,189.9
165,005.9
Gail India Ltd.
112,597.8
NA
NA
NA
Sterlite Industries (India) Ltd.
102,461.8
110,022.8
105,913.9
110,289.2
Grasim Industries Ltd.
62,600.7
73,668.4
67,934.2
65,519.1
Aditya Birla Nuvo Ltd.
56,530.6
64,242.9
52,535.8
59,213.9
Pantaloons Retail (India) Ltd.
31,748.0
32,772.8
35,524.5
35,428.4
145,725.4
Manufacturing and Construction – Monthly Update
NMDC Ltd.
28,219.5
25,936.5
28,379.0
26,118.4
Ashok Leyland Ltd.
28,798.0
43,721.2
29,409.8
32,960.5
Crompton Greaves Limited
30,279.5
30,773.6
28,111.4
29,241.7
Welspun Corp Ltd.
24,496.8
27,466.9
25,497.2
20,606.3
Alok Industries Ltd.
NA
NA
16,448.9
NA
JBF Industries Ltd.
18,040.1
19,326.5
17,965.3
18,093.3
National Aluminium Co. Ltd.
14,486.2
18,461.2
17,480.7
Havells India Ltd.
16,596.0
17,777.0
17,778.0
NA
Voltas Ltd.
11,538.8
15,841.8
16,766.5
11,601.0
Jindal Saw Ltd
10,967.1
NA
NA
NA
Jain Irrigation Systems Ltd.
7,711.1
NA
NA
NA
DCM Shriram Consolidated Limited (DSCL)
13,996.9
13,312.8
NA
NA
16,083.2
Quarterly Financial Results – Income (INR mn)
Company
OctDec 2011
Jan Mar 2012
MarJun 2012
JulSep 2012
Oil and Natural Gas Corp. Ltd.
67,414.1
NA
NA
NA
Hindalco Industries Ltd.
4,506.9
NA
NA
NA
Coal India Ltd.
40,377.6
40,134.1
44,692.6
30,780.8
Gail India Ltd.
10,914.2
NA
NA
NA
Sterlite Industries (India) Ltd.
9,135.2
3,487.7
12,015.9
17,426.9
Manufacturing and Construction – Monthly Update
Grasim Industries Ltd.
6,690.7
8,087.8
Aditya Birla Nuvo Ltd.
2,523.9
1,702.9
Pantaloons Retail (India) Ltd.
(79.6)
(0.6)
227.1
2,579.0
18,588.1
16,422.8
19,060.0
16,786.2
Ashok Leyland Ltd.
669.0
2,587.4
669.4
1,426.0
Crompton Greaves Limited
771.4
1,003.2
859.0
420.5
Welspun Corp Ltd.
(701.9)
1,185.5
74.7
43.6
Alok Industries Ltd.
NA
NA
577.7
NA
JBF Industries Ltd.
711.8
234.4
337.0
494.3
National Aluminium Co. Ltd.
512.2
2,821.0
2,230.8
47.8
Havells India Ltd.
886.0
1,208.2
713.0
NA
(1,154.1)
1,038.1
640.1
429.3
Jindal Saw Ltd
365.4
NA
NA
NA
Jain Irrigation Systems Ltd.
115.7
NA
NA
NA
(252.0)
494.9
NA
NA
NMDC Ltd.
Voltas Ltd.
DCM Shriram Consolidated Limited (DSCL)
7,180.0 2,668.4
6,195.8 3,041.8
Manufacturing and Construction – Monthly Update
Events Calendar 11th International Mining & Machinery Conference on Emerging Trends & Opportunities in Construction Sector Exhibition th ‐8th Dec 2012 Date: 5 Date: 6th Dec, 2012 Salt Lake Stadium Grounds, Salt Lake, Kolkata, Venue: Hotel Gateway, Godavari, Beach Road, West Bengal, India Kolkata Visakhapatnam, Andhra Pradesh, India Organizer: Confederation of Indian Industry Organizer: Confederation of Indian Industry (CII) (CII) Website: www.cii.in Website: www.cii.in Contact ID: j.i.maheshkumar@cii.in Contact ID: k.ganeshan@cii.in Contact No: +91‐44‐42444520 Contact No: +91‐891‐2555535 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: https://www.researchonindia.com T: India (Toll Free): 1800 102 1133; International: +91 (33) 4027 6214/5 E: support@researchonindia.com 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.
Manufacturing and Construction – Monthly Update