Issue 90 | February 2016Strictly for Private Circulation

Highlights

MACROECONOMIC UPDATE

n Gross national saving to Gross national disposable income remains almost flat in FY15 at 32.3% as against FY14, whereas the investment rate marginally moderated to 34.2% in FY15 as compared to 34.7% in FY14.

n The Index of Industrial Production (IIP) and manufacturing sector declined for the second month in a row to 1.3% and 2.4% respectively in Dec-15.

n The mining and electricity sectors witnessed a growth of 2.9% and 3.2% respectively in Dec-15 as against a moderate growth of 1.9% and 0.7% during Nov-15.

n During Jan-16, CPI inflation marginally grew by 5.7% against a growth of 5.6% in Dec-15, whereas, WPI inflation declined further to 0.9% in Jan-16 from a decline of 0.7% in the previous month.

n In the recent bi-monthly monetary policy, the RBI kept the key policy repo rate and CRR unchanged at 6.75% and 4.00% respectively.

n The aggregate deposit and bank credit grew by 11.3% (y-o-y) and 11.5% (y-o-y) respectively in the week ended Feb 5, 2016 as against a growth of 11.1% and 9.9% in the year-ago period.

n FII investment outflow stood at US$ 1.3 billion during Jan-16 as against an inflow of around US$ 5.4 billion in Jan-15.

n On 17-Feb-16, the rupee touched an all-time low of ̀ 68.59 per US$.

n India's exports and imports declined by 13.6% (y-o-y) and 11.0% (y-o-y) to around US$ 21.1 bn and US$ 28.7 bn respectively during Jan-16 leading to a trade deficit of US$ 7.6 bn.

E: D&B estimateSource: CSO

Source: Ministry of Commerce and Industry

India's exports & imports (US$ bn) Macroeconomic triad (estimate)

Note: Exchange rate: INR/US$ at month endInterest rate corresponds to yield on T-Bills 15-91 daysSource: D&B Industry Research Service

Feb-16

Inflation0.0% - 0.5%

Interest rate7.10% - 7.30%

Exchange rate68.10 - 68.30

cursorIndustryCONTENTS

Logistics & Supply Chain

Commercial Vehicle

Gems & Jewellery

Hi-Tech

Banking

Hospitality

IT-Hardware

Passenger Vehicle

Textile & Garment

Steel

Retail

Two and Three-Wheeler

2

4

5

7

6

8

3

9

10

11

15

14

13

12

Macroeconomic Update

Auto Components

Healthcare & Pharmaceutical

IIP and core infrastructure: Growth (%)

Source: Ministry of Commerce & Industry, CSO

GDP: Growth (%)

Agriculture Industry Services Real GVA Eight core industries IIP

Exports (LHS) Imports (RHS)

-2

0

2

4

6

8

10

12

14

Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 E

-6.0-4.0-2.00.02.04.06.08.0

10.012.0

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

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Dec

-15

25.0

30.0

35.0

40.0

45.0

50.0

15.0

20.0

25.0

30.0

35.0

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

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-15

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15

Au

g-1

5

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v-1

5

Dec

-15

Jan

-16

AUTO COMPONENTS INDUSTRY

n Auto components maker Pricol sold its entire stake in wholly-owned subsidiary Coimbatore Metal Works Ltd for ̀ 130 million.

n Bharat Forge through its subsidiary company Kalyani Strategic Systems entered into a joint venture agreement with Rafael Advanced Defense Systems to address programs in relation to BMP II upgrade, tactical control systems, other advanced systems and other such programs floated or to be floated by the Ministry of Defence, India.

n Gurgaon-based Talbros Automotive Components Ltd commenced operations at new dedicated heat shield production line at its Faridabad plant. The company supplies heat shields to heavy commercial vehicle customers like Daimler, Tata Motors, VE Commercial Vehicles, Volvo and Ashok Leyland.

n Delhi-based manufacturer of leaf spring, Jamna Auto Industries Ltd, set up a new plant in Hosur to serve the export markets and multinational companies. The plant is expected to be ready for commercial operation from June 2016.

n Hella India Lighting, the Indian arm of German automotive lighting company, plans to diversify into automotive battery segment and is expected to launch its battery business across the country by June 2016.

n UK-based security solution provider Royace Eye Industries India plans to invest ` six billion in Indian automobile security market in the next two years along with setting up its manufacturing unit in Jammu.

n Bosch plans to invest ` 10 billion this year in its Indian operations while Volvo India plans to invest ̀ three billion in the next two years.

Highlights

Rubber prices* (Kottayam)(`/quintal)

Steel prices (Mumbai) (`/tonne)

*Rss-4 CMIESource for all above charts:

Auto Components: Key financial indicators (Oct-Dec 2015)

Budget Expectations

In its pre-budget recommendations, the Automotive Component Manufacturers Association (ACMA) has stressed on the need to reduce multiplicity and complexity of applicable taxes through early implementation of GST. The other recommendations include:n Duty drawback should be reverted to FOB value basis from weight basisn Expand list of tools for availing CENVAT Creditn Permit 100% CENVAT Credit on capital goods in the year of purchasen Allowing input credit on dieseln Service tax - credit on various services should be providedn Encouraging Research & Development by extending the 200% weighted

deduction to R&D facilities, which are outsourced to third-party service providers or other institutions

n Enhancing depreciation rate on capital goods to 25% from 15%.n Tax benefits to be made available to the users of green technologies to

incentivize and popularize clean energy sources

Company Net sales (` mn)

PBDIT (` mn)

Net profi t (` mn)

PBDIT margin (%)

PAT margin (%)

Maruti Suzuki India Ltd. 150,819.00 21,701.00 10,193.00 14.39 6.74

Tata Motors Ltd. 100,006.20 4,362.60 -399.90 4.36 -0.38

Hero Motocorp Ltd. 72,947.80 1,399.30 7,958.10 15.63 10.78

Bajaj Auto Ltd. 55,649.00 11,712.60 9,014.90 21.05 15.64

Ashok Leyland Ltd. 40,853.40 4,297.20 2,051.50 10.52 4.99

Note: Operating profi t: PBDIT net of prior period and extra-ordinary items (P&E) & Other income; Net profi t: PAT net of P&E Source: CMIE

30000

35000

40000

45000

50000

55000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

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15

Au

g-1

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9,000

11,000

13,000

15,000

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5

Dec

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Jan

-16

BANKING INDUSTRY

n Interest rates of Small Saving Schemes to be recalibrated w.e.f. Apr 1, 2016 on a quarterly basis to align the small saving interest rates with the market rates of the relevant government securities. Interest rate on savings schemes based on social development or social security goals including Sukanya Samriddhi Yojana, the Senior Citizen Savings Scheme and the Monthly Income Scheme has been left untouched by the Government.

n In the Sixth Bi-monthly Monetary Policy Statement FY16, the RBI kept the repo rate under liquidity adjustment facility unchanged at 6.75%. Cash Reserve Ratio (CRR) of scheduled banks was also kept unchanged at 4.0% of net demand and time liabilities.

n The RBI proposed to make regulatory changes for easing the cross-border transactions, particularly relating to the operations of the start-up enterprises in consultation with the Government of India. The regulatory changes include: 1) Enabling start-up enterprises to receive foreign venture capital investment 2) Permitting, in case of transfer of ownership of a start-up enterprises, receipt of the consideration amount on a deferred basis as also enabling escrow arrangement or indemnity arrangement up to a period of 18 months 3) Enabling online submission of A2 forms for outward remittances 4) Simplifying the process for dealing with delayed reporting of Foreign Direct Investment (FDI) related transaction .

n The RBI, in consultation with the Government of India, signed a Memorandum of Understanding (MoU) with the Central Bank of the United Arab Emirates to consider entering into a bilateral Currency Swap Agreement subject to the concurrence of the respective governments.

n Axis Bank partnered with Apollo Munich Health Insurance Company to offer its customers bespoke health insurance products and services. Axis Bank tied up with fitness firm GOQii to collaborate on wearable devices for its customers. The device will allow customers to make NFC (near-field communication) payments and will come loaded with fitness related features.

n Bandhan Bank launched an international debit card in association with Visa. It also begun banking services for overseas Indians.

n The Federal Bank partnered with National Australia Bank to provide its NRI customers in Australia inward remittance facility at a discounted rate.

n Electronic Payment and Services Ltd acquired a 100% stake in CISB ATM Services Pvt Ltd from CIS Bureaus Facility Services Pvt Ltd.

n Lakshmi Vilas Bank launched its mobile application 'LVB Mobile' to tap the digital banking space and diversify its offerings.

n RBL Bank launched a banking platform 'India Startup Club' to provide end-to-end banking services to the emerging entrepreneurial community.

n ICICI Bank opened a full service branch at Sandton in Johannesburg, South Africa.

n Axis Bank partnered with Suvidhaa to lend to people who have no formal credit score and no bank guarantees to offer.

Highlights

Deposits, credit and growth rates

%` bn

Deposits (LHS) Credit (LHS)

y-o-y growth rates of deposits (RHS)

y-o-y growth rates of credit (RHS)

Note: Data for Jan-16 is as on Jan 22,2016

Note: Call rates for Feb-16 are up to Feb 18, 2016Source for all above charts: RBI

Movement in call money rates (%)

Call money rate- High (%)

Call money rate- Low (%)

Banking: Key financial indicators (Oct-Dec 2015)

Company Net sales (` mn) Net profi t (` mn) Net profi t margin (%)

State Bank Of India 405,535.0 11,153.4 2.4

H D F C Bank Ltd. 154,111.2 33,568.4 18.4

I C I C I Bank Ltd. 133,460.7 30,181.3 17.2

Punjab National Bank 122,206.0 -8,576.50 -6.2

Net profit: PAT net of prior period and extraordinary items Source: CMIE

0

4

8

12

16

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60,000

70,000

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100,000

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Jan

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Feb

-16

Canara Bank 108,820.7 849.7 0.7

COMMERCIAL VEHICLE INDUSTRY

n Trucks coming from outside the national capital will now be allowed to enter Delhi from 11 pm onwards against the existing 9.30 pm limit.

n The Delhi government decided to run 1,000 new air-conditioned low-floor buses on public-private partnership (PPP) model in the national capital.

n Gurgaon-based Eicher Trucks and Buses, part of the Volvo Eicher Commercial Vehicles launched Eicher Live - an advanced telematics solution for the commercial vehicle industry. Eicher Live provides real time dashboard data analytics of the fleet, tracking fuel management and fault identification.

n JBM Auto Ltd launched the diesel version of its ultra-low-floor bus Citylife. Citylife Diesel will be manufactured at the company's manufacturing facility in Kosi, Uttar Pradesh.

n Mahindra & Mahindra launched its new truck series Blazo with superior mileage. The Blazo series will include haulage, tractor, trailer and tipper vehicles.

n Daimler India Commercial Vehicles Pvt Ltd launched its new generation of BharatBenz medium duty trucks (MDTs). The new BharatBenz range of MDTs is available in BS-III and BS-IV, and is Euro-V ready.

n Tata Motors launched Signa range of commercial vehicles (4923.S tractor, the A 3118.T multi-axle truck and the 2518.K tipper) for haulage and construction segments.

n China-based, Foton Motor received all licenses including environmental clearance for setting up ` 1.7 billion plant near Pune to manufacture a range of vehicles including SUVs, vans and trucks.

Society of Indian Automobile Manufacturers (SIAM) has made the following recommendations in its pre-budget presentation:n Reduce excise duty on large cars and SUVs to 20% from the current rates of up to

30%.n Multiple tax levies, including basic excise duty, automobile Cess, NCCD, education

cess, higher education cess, needs to be merged into a single rate of excise duty.n Taxation of used vehicles should be covered as well as all taxes including road tax

should be subsumed in GST.n 1% NCCD on vehicles should be withdrawn. Until the time NCCD is not withdrawn,

payment of NCCD from CENVAT should be allowed.n Incentivize replacement of vehicles, which were registered before the year 2000

when the first emission norms were introduced in India.

Highlights

Budget Expectations

M&HCV: Domestic sales (Nos.)

Source for all above charts: CMIE

LCV: Domestic sales (Nos.)

Commercial vehicle sales (Nos.)

Commercial vehicles: Key financial indicators (Oct-Dec 2015)

Segments Jan-15 Jan-16 y-o-y growth (%) Apr-Jan FY15 Apr-Jan FY16 y-o-y growth

(%)

M&HCV 21,363 28,533 33.6 181,423 236,201 30.2

LCV 31,118 33,150 6.5 315,237 307,279 -2.5

Total domestic sal 52,481 61,683 17.5 496,660 543,480 9.4

Export 7,102 9,423 32.7 70,040 82,896 18.4

Total sal 59,583 71,106 19.3 566,700 626,376 10.5

Source: CMIE

Company Net sales (` bn) Operating profi t (` bn)

Net profi t (` bn) PBDIT margin (%) PAT margin (%)

Tata Motors Ltd. 100.0 4.4 -0.4 4.4 -0.4

Ashok Leyland Ltd. 40.9 4.3 2.1 10.5 5.0

Force Motors Ltd. 7.5 0.5 0.3 6.3 3.6

S M L Isuzu Ltd. 1.9 0.0 0.0 1.3 -0.9

Note: Operating profit: PBDIT net of prior period and extra-ordinary items (P&E) & Other income; Net profit: PAT net of P&ESource: CMIE

15,000

20,000

25,000

30,000

35,000

Jan-1

5

Feb-1

5

Mar

-15

Apr-

15

May

-15

Jun-1

5

Jul-15

Aug-1

5

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Oct

-15

Nov-

15

Dec

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Jan-1

6

25,000

30,000

35,000

40,000

Jan-1

5

Feb-1

5

Mar

-15

Apr-

15

May

-15

Jun-1

5

Jul-15

Aug-1

5

Sep-1

5

Oct

-15

Nov-

15

Dec

-15

Jan-1

6

GEMS AND JEWELLERY INDUSTRY

n The Gems and Jewellery Export Promotion Council (GJEPC) expects 10% decline in gems & jewellery exports in FY16 due to the global slowdown compared to US$ 40 bn exports achieved in FY15.

n India's demand for gold remained nearly flat at 848.9 tonnes in 2015 compared to the previous year, according to the World Gold Council's 'Gold Demand Trends' report.

n The RBI made amendments in the 'Gold Monetisation Scheme', according to which depositers will be allowed to withdraw medium term and long term government deposits pre-maturely after the minimum lock-in period, though with a penalty. In the case of large tenders of gold, the metal can be deposited directly with refiners wherever they have the assaying capacity.

n Tribhovandas Bhimji Zaveri (TBZ) collaborated with Amazon to sell its exquisite diamond jewellery range and gold coins.

n Kalyan Jewellers announced to partner with Flipkart to sell gold and diamond jewellery on Flipkart's e-commerce platform.

n The tariff value for gold and silver is changed to US$ 403 per 10 grams and US$ 510 per kilogram respectively.

n Kalyan Jewellers announced to add 14 new showrooms, with 7 in India and 7 in West Asia by the end of FY16.

n Israel Diamond Exchange (IDE) and Istanbul Chamber of Jewelry (IKO) signed a Memorandum of Understanding (MoU) to increase cooperation between the organizations' respective diamond and jewellery industries.

n Companies like De Beers, Rio Tinto and ALROSA decided to lower rough prices by 5-7% beginning Feb 2016.

n PAN card requirement for transactions of above ` 5 lakh instead of the current mandate of ̀ 2 lakh.

n Inclusion of Gems and Jewellery under Interest Subvention Scheme and Merchandize Exports from India Scheme (MEIS).

n Introduction of a Special Turnover Tax regime for the diamond industry with 0.75% tax on sales turnover.

n Permit the sale of rough diamonds at the Special Notified Zone (SNZ) in Mumbai by implementing a 0.25% tax on sales turnover achieved at SNZ by foreign mining companies.

n Tax neutral approach to make India a global diamond hub, create jobs, attract foreign investment and enhance exports.

n Rationalization of the import duty on gold dore bars.

Highlights

Global News

Budget Expectations

Gems & Jewellery exports (` bn)

*Outstanding investmentsSource for all above charts: CMIE

Gold prices in Mumbai market

Price (LHS) Change (RHS)

`/10 gm %

-20

-15

-10

-5

0

5

10

15

20

24,000

24,500

25,000

25,500

26,000

26,500

27,000

27,500

28,000

Jan

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Ap

r-1

5

May

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100

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240

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Gems & Jewellery imports (` bn)

100

120

140

160

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Gems & Jewellery: Key financial indicators (Oct-Dec 2015)

Company Net sales (` mn) Operating profi t (` mn)

Net profi t (` mn) PBDIT margin (%)

PAT margin (%)

Rajesh Exports Ltd. 90,499.2 1,491.0 1,397.5 1.7 1.5

Titan Company Ltd. 34,261.6 3,099.3 2,252.9 9.1 6.6

P C Jeweller Ltd. 21,804.9 2,042.9 1,461.4 9.4 6.6

Gitanjali Gems Ltd. 20,930.1 868.9 206.0 4.2 1.0

S R S Ltd. 10,380.5 271.7 48.8 2.6 0.5

Note: Operating profi t: PBDIT net of prior period and extra-ordinary items (P&E) & Other income; Net profi t: PAT net of P&ESource: CMIE

HEALTHCARE & PHARMACEUTICAL INDUSTRY

n Government of India restored customs duty exemption on three drugs mainly used for treatment of hormonal disorders, growth failure, and haemophilia.

n Strides Shasun signed definitive agreement to acquire 51% stake in Kenya-based Universal Corporation for a consideration of US$ 14 million and 51% stake in Australia-based Generic Partners Holdings Co for a consideration of AUD 15 million.

n Strand Life Sciences acquired 68% stake in a US-based diagnostic firm Venaxis. The deal will help the company to expand its offering of personalised treatment to cancer patients in the US.

n Emcure Pharmaceuticals acquired Canada's International Pharmaceutical Generics Ltd and its marketing arm Marcan Pharmaceuticals.

n Cipla received approval from Competition Commission of India to sell about 26% stake in its consumer healthcare business Cipla Helath Ltd to FIL Capital Investments (Mauritius) II Ltd. The company also sold its entire stake in Hong-Kong based Biomab Holding to Biomab Brilliant for US$ 2.5 million.

n Sun Pharma received approval from Competition Commission of India to sell the erstwhile Ranbaxy Laboratories' 'Solus' and 'Solus Care' divisions operating in the central nervous system segment in India to Strides Shasun for ` 1.65 billion. The company also decided to wind-up its joint venture with Merck Sharp & Dohme's.

n Natco Pharma signed a non-exclusive, royalty free licensing agreement with the Medicines Patent Pool and Bristol-Myers Squibb to manufacture and sell generic versions of Daclatasvir Dihydrochloride, used for the treatment of chronic hepatitis C.

n Lupin launched Metformin, a generic copy of Glumetza tablets used in the treatment of diabetes, in the US market.

n Switzerland-based Ferring Pharmaceuticals proposed to invest US$ 100 - US$ 250 million for setting up a facility in the upcoming Pharma City on the outskirts of Hyderabad.

n Mankind Pharma entered into the US market with an investment of ` 3 billion to set up a manufacturing plant in New Jersey.

The Pharmaceuticals Exports Promotion Council of India has made following recommendations in its pre-budget memorandum:n FIPB route to be exempted for companies primarily deriving revenues from

intermediates/ APIs/ biotech APIs business that are less than five years old and have net revenues of less than ̀ 15 billion.

n Loans advanced to API/ intermediates or biotech API industries should be treated as loans advanced to priority sector.

n To set up pharma clusters to encourage production of APIs and intermediates, especially of fermentation units.

n Formulations, which are referred under 'Listed Drugs', are imported for the purpose of demonstrating bioequivalence of generics before obtaining market authorisations. The industry requires these studies to be bracketed along with clinical trials for the purpose of exemption of import duties.

Highlights

Budget Expectations

Trend in Drugs and Pharmaceuticals export

Value (LHS) Change (RHS)

` bn %

Trend in Drugs and Pharmaceuticals import

Value (LHS) Change (RHS)

%` bn

Source for all above charts: CMIE

Drugs & Pharmaceuticals: Key financial indicators (Oct-Dec 2015)

Company Net sales (` bn)

Operating profi t (` bn)

Net profi t (` bn)

PBDIT margin (%)

PAT margin (%)

Lupin Ltd. 28.9 10.7 7.7 37.2 26.2

Cipla Ltd. 26.8 3.3 2.7 12.3 9.7

Dr. Reddy'S Laboratories Ltd. 24.3 4.3 2.4 17.6 9.6

Aurobindo Pharma Ltd. 23.6 6.9 4.7 29.2 19.6

Sun Pharmaceutical Inds. Ltd. 18.5 1.0 -1.5 5.3 -7.8

Note: Operating profit: PBDIT net of prior period and extra-ordinary items (P&E) & Other income; Net profit: PAT net of P&ESource: CMIE

-10

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HI-TECH INDUSTRY

Highlights

Budget Expectations

Civil aviation: Cargo statistics(freight tonne km and mail tonne km in mn)

Freight tonne km (LHS) Mail tonne km (RHS)

Civil aviation: Load factor (%)

Passenger load factor Weight load factor

Source for all above charts: CMIE

Aviation*: Key financial indicators (Oct-Dec 2015)

Consumer Electronics: Key financial indicators (Oct-Dec 2015)

Civil aviation: Airport traffic statistics (December 2015); y-o-y growth

n The Government of India (GoI) set up a fund of ` 100 billion to boost electronic manufacturing, to promote innovation, research and product development in electronics, nano electronics and IT.

n The Department of Electronics & IT in partnership with Canbank Venture Capital Fund to launch the Electronics Development Fund (EDF) this month. The EDF will provide financial assistance to domestic companies in the field of electronics manufacturing and encourage innovation in the sector.

n Rajasthan Electronics and Instruments Ltd received approval from GoI to be hived off from its parent company, Instrumentation Ltd, and turning it into an independent central public sector enterprise under the Department of Heavy Industry.

n The government of Maharashtra approved a new electronics policy which aims to create one lakh jobs over the next five years and attract investments of U$ 3 billion.

n Goldman Sachs PE bought 50% stake in white goods maker, Amber Enterprises at an estimated value of ̀ 12 billion.

n Twinstar Display Technologies signed an agreement with Maharashtra government to set up an LCD manufacturing unit, also known as Panel FAB, at an investment of US$ 10 billion.

n Toshiba Transmission & Distribution Systems (India) made an investment of US$ 30 million at its Hyderabad factory to boost production capacity for transformers up by 50% and establish a new line for production of 'New Technology' switchgears.

n Aviation services provider Bird Group in collaboration with Swiss firm ExecuJet Aviation plans to set up country's first dedicated terminal for private jets.

n The Government of Gujarat plans to set up the country's first aviation park with facilities such as an airstrip, training school, helipad and space for setting up small manufacturing units among others.

n Delhi International Airport Ltd launched a mobile application for cargo operations to reduce paper work and track movement of shipments on real time basis.

n The Consumer Electronics and Appliances Manufacturers Association (CEAMA) sought a reduction in basic customs duty for the major parts required for manufacturing air conditioners, refrigerators and washing machines.

n The Civil Aviation Ministry urged the Government to exempt service tax and provide relaxation in customs duty for maintenance, repair and overhaul activities.

n Air India sought ̀ 42.7 billion in the upcoming budget for their turnaround plan. n Air-conditioner (AC) manufacturing companies have urged the Government to

exempt CENVAT for 5-star and inverter ACs to encourage people to shift to eco-friendly ACs.

Company Net sales (` mn) Operating profi t(` mn)

Net profi t(` mn)

PBDIT margin(%)

PAT margin(%)

Trend Electronics Ltd. 3,833.4 226.5 -61.2 5.9 -1.6

Mirc Electronics Ltd. 1,719.7 -47.0 -148.5 -2.7 -8.6

Note: Operating profi t: PBDIT net of prior period and extraordinary items (P&E) & Other income;Net profi t: PAT net of P&ESource: CMIE

Company Net sales (` mn) Net profi t (` mn) PAT margin (%)

Jet Airways (India) Ltd. 54,439.7 4,749.1 8.4

Interglobe Aviation Ltd. 42,977.6 6,572.9 14.9

Spicejet Ltd. 14,599.5 2,368.0 16.1

Global Vectra Helicorp Ltd. 914.4 48.6 5.3

*Air transport services;Note: Net profi t: PAT net of prior period and extraordinary itemsSource: CMIE

2.0

2.5

3.0

3.5

4.0

4.5

8,000

9,000

10,000

11,000

12,000

13,000

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

65

70

75

80

85

90

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Parameters Aircraft traffic

Passenger traffic

Cargo traffic

Domestic traffic 15.6 20.4 4.4

International traffic

8.4 7.2 8.3

Total airport traffic

14.0 16.8 6.8

HOSPITALITY INDUSTRY

Budget Expectations

n To provide infrastructure status to hospitality sector.n To subsidize cost of real estate in the country for development of hospitality

projects.

n The Government of India identified five ITDC-run hotels for privatisation as part of its plan to disinvest eight such loss-making properties. The properties in which the stake will be offloaded are Hotel Janpath, Hotel Patliputra Ashok; Hotel Bharatpur Ashok and property at Kosi; Hotel Donyi Polo Ashok and Hotel Pondicherry Ashok.

n The Competition Commission of India (CCI) gave its nod for acquisition of Starwood Hotels and Resorts by Marriott International.

n SAMHI Hotels acquired Hyatt Regency in Pune from RK Jatia Group-owned Ascent Hotels for an estimated ̀ 3.5 billion.

n Marriott International opened its first dual brand property in India in Bengaluru. n AccorHotels opened its second 'Ibis' branded budget property in Chennai. n Loofre, a restaurant table reservation platform, decided to invest US$ 1 million

in expansion and increasing its tie-ups across India to bolster operations. n Treebo Hotels expanded its operations in Pune and Kolkata, by launching a

property each in these cities. With this, the start-up has expanded its presence to 52 hotels in 11 cities across India.

n Deyor Rooms entered the camping business in a bid to diversify and broaden its revenue base. Deyor Camps, as the new business is called, plans to invest ` 60 million to grow its business in 2016 and open 200 campsites.

n TripAdvisor expanded its instant hotel booking service to nine countries namely India, Australia, Canada, Ireland, Malaysia, New Zealand, Philippines, Singapore and South Africa.

n Hyatt plans to expand its upscale Hyatt Place hotels to tier II and III cities pan India.

n Pride Group of Hotels plans to invest ̀ 10 billion to add 13 hotels in its network by 2020 across the country.

n Vatika Group plans to invest ̀ one billion to open around 200 restaurants under the 'Nukkadwala' brand across the country by the end of 2019.

n Starwood Hotels & Resorts Worldwide plans to open five new properties in India in 2016 as part of its aggressive expansion of footprint in South Asia.

n Apeejay Surrendra Park Hotels plans to add 17 properties under its mid-segment brand 'Zone by the Park' by 2020 as part of its expansion plans across the country.

n ITC Ltd plans to invest ̀ eight billion in Odisha over the next few years to set up a hotel property and a food processing park in the state.

HighlightsForeign tourist arrivals in India('000 nos.)

Foreign exchange earnings

Foreign exchange earnings (LHS)

Growth (RHS)

` bn %

Growth in foreign tourist arrivals (%)

Source: CMIE

Source: Ministry of Tourism

Source: Ministry of Tourism

Hospitality: Key financial indicators (Oct-Dec 2015)

Company Net sales (` mn) Net profi t (` mn) Net profi t margin (%)

Indian Hotels Co. Ltd. 6,630.5 617.0 9.1

E I H Ltd. 4,025.8 473.6 11.6

Mahindra Holidays & Resorts India Ltd. 2,372.6 312.6 13.0

Hotel Leelaventure Ltd. 1,843.1 -263.3 -14.2

India Tourism Devp. Corpn. Ltd. 1,139.1 148.0 12.0

Speciality Restaurants Ltd. 845.8 5.8 0.7

Note: Net profi t: PAT net of prior period and extraordinary itemsSource: CMIE

0

100

200

300

400

500

600

700

800

900

1000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

-6

-4

-2

0

2

4

6

8

10

12

14

50

60

70

80

90

100

110

120

130

140

150

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

0

2

4

6

8

10

12

14

16

18

20

Jan

Feb

Mar

Ap

r

May Jun

Jul

Au

g

Sep

Oct

No

v

Dec

2013 2014 2015 2016

IT HARDWARE INDUSTRY

n IBM India entered into a seven year strategic relationship with BTI Payments Pvt Ltd, to transform its IT infrastructure. BTI Payments Pvt Ltd will leverage IBM's managed services solution to deploy and manage an incremental 4,000 ATMs across the country.

n IBM India also partnered with Financial Software & Systems to power digital solutions for banks.

n Qualcomm Incorporated and Lenovo Group entered into a new 3G and 4G patent license agreement for China, which covers devices marketed by both Motorola and Lenovo. Under the terms of the agreement, Qualcomm granted Lenovo a royalty-bearing patent license to develop, manufacture and sell 3G and 4G, including 3-mode complete devices.

n Apple® announced the creation of Europe's first iOS App Development Center in Italy, to give students practical skills and training on developing iOS apps for the world's most innovative and vibrant app ecosystem.

HighlightsDomestic computer hardware& peripheral production (` bn)

Source: CMIE

Budget Expectations

Global News

The Manufacturers' Association of Information Technology (MAIT) has made the following recommendations:n Requested to extend differential duty structure for IT hardware specifically

laptops, desktops, wired and wireless customer premises equipment (CPE) and e-Readers at par with smart phones and tablets.

n Reduction of time taken for customs clearances.n Demanded incentives to encourage domestic manufacturing of IT-hardware

products.n Suggested formation of a 'Convergence Cell' to decide on the classification of

new IT products within 30 days of representation to reduce instances of confusion and cases of litigation.

The Telecom Equipment Manufacturers Association of India (TEMA) made the following recommendations: n The grant of infrastructure status to domestic telecom equipment

manufacturing companies complying with PMA provisions. n The extension of benefits under section 35AD of the Income Tax Act to domestic

telecom equipment manufacturing companies that are complying with the PMA (Preferential Manufacturing Access) provisions.

n Research & development support and also proposed the introduction of a 5% cess on telecom service providers to create a corpus for supporting R&D for technology development in the telecom sector.

IT-Hardware: Key financial indicators (Oct-Dec 2015)

Company Net sales (` mn)

Operating profi t ( ̀mn)

Net profi t (` mn)

Operating profi t margin (%)

Net profi t margin (%)

T V S Electronics Ltd. 1,830.5 20.7 11.1 1.1 0.6

Moser Baer India Ltd. 1,408.4 -278.2 -1,011.5 -19.8 -70.9

Smartlink Network Systems Ltd. 148.0 -65.3 2.3 -44.1 1.0

V X L Instruments Ltd. 147.6 -34.2 -37.8 -23.2 -25.6

Zen Technologies Ltd. 44.5 -36.5 -33.7 -82.0 -57.5

Note: Operating profit: PBDIT net of prior period and extraordinary items (P&E) & Other income;Net profit: PAT net of P&ESource: CMIE

2.1

1.3 1.3

2.0

1.0

1.2

1.7

1.2

1.4

1.8

1.4 1.4

2.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

LOGISTICS & SUPPLY CHAIN INDUSTRY

Highlights

Global News

Budget Expectations

Logistics*: Key financial indicators (Oct-Dec 2015)

n Air Liquide group subsidiary, CRYO International acquired pharma logistics firm, PDP Couriers.

n Great Eastern Shipping to close down Great Eastern Shipping Co London Limited, its wholly owned subsidiary in UK.

n Shipping company Mercator announced sale of its loss-making Singaporean dry bulk subsidiary, Mercator Lines (Singapore) Ltd to PE investors namely Bellerophon Holdings Pte Ltd, MIB Investments Private Ltd and Wroclaw Holdings Ltd.

n DHL eCommerce launched its delivery services in Thailand targeting Thai e-commerce merchants. The company's delivery infrastructure will include a central distribution centre in Bangkok and a network of 20 depots to provide coverage across the country.

n GVK Mumbai International Airport Limited along with its strategic technology partner Kale Logistics Solutions launched India's first Cargo Mobile App as an extension to its air cargo community platform, GMAX. The app enables complete vehicle tracking within the air cargo complex, i.e. right from the entry gate to the vehicle gate-out.

n Algor Supply Chain Solutions introduced temperature controlled logistics and supply chain services targeted at the enterprise-class customers.

n Logistics firm Patel Integrated Logistics Ltd raised ` 187.3 million from Mauritius-based Frontline Strategy Pvt Ltd, an India-focussed private equity investment firm, to fund its e-commerce venture plan.

n Maersk Line launched a new weekly service between Santa Marta and Turbo in Colombia and Northern Europe specifically designed for refrigerated cargo.

The industry has made the following recommendations in its pre-budget memorandum:n To promote dedicated cargo hub or cargo city in the vicinity of the major metro

airports.n Inland waterways need to be pushed.n Logistics industry to be granted 'industry' status.n Development of logistics parks across the country.n Refined policy of setting up Air Fright Station across the country.n Budgetary allocation for development of Foreign Trade Zones (FTZs) across the

country.n Development of more and bigger warehouses.n Ease the regulatory norms with respect to warehousing.n Infrastructure status to the air cargo and shipping industry.n Single window clearance and setting up of electronic data exchange.

Company Net sales (` mn) Net profi t (` mn) Net profi t margin (%)

Container Corpn. Of India Ltd. 14,045.6 2,087.3 14.1

Blue Dart Express Ltd. 6,530.1 500.5 7.6

Transport Corporation Of India Ltd. 5,514.6 189.0 3.4

V R L Logistics Ltd. 4,308.4 247.3 5.7

Allcargo Logistics Ltd. 3,006.0 314.6 10.1

*Transport logistics servicesNote: Net profit: PAT net of prior period and extraordinary itemsSource: CMIE

PASSENGER VEHICLE INDUSTRY

n Suzuki Motor Corporation, the parent company of Maruti Suzuki India Ltd plans to tie up exclusively with local component and raw material suppliers to develop better technologies.

n Force Motors launched 15-seater Traveller Royal priced in the range of ̀ 15 lakh and ̀ 25 lakh and 9-seater Traveller Super priced between ̀ 8 lakh and ̀ 16 lakh.

n Mahindra & Mahindra launched a 1.99 litre version of its mHawk engine series due to ban of registration of diesel SUVs and cars with engines above 2,000 cc in Delhi-NCR. This new engine would power the new generation Scorpio and XUV500.

n Skoda India to launch new Skoda Superb this month based on Volkswagen MQB platform. The new-generation Skoda Superb is expected to be priced around ` 25 lakh.

n BMW plans to launch the all-new Mini Convertible as a completely built-up unit, in India this year. The Mini model range in India presently includes Mini Cooper S 3-door, Mini Cooper D 3-door, Mini Cooper D 5-door, Mini Convertible and Mini Countryman D.

n Maruti Suzuki India aims to launch compact sports utility vehicle Vitara Brezza in April 2016 in a total of three trim levels and six variants.

Highlights

n In its pre-budget recommendations, the Society of Indian Automobile Manufacturers (SIAM) has urged the Government to continue the excise duty rate for passenger vehicles other than small cars at 20% and 24% till GST is introduced.

n SIAM has also requested a hike in vehicle depreciation rate from the current 15% to 25%.

Budget Expectations

Passenger cars: Domestic sales (Nos)

Utility vehicles: Domestic sales (Nos)

A: Automatic; M: Manual; D:Diesel, P: Petrol; *In ` crore

New Launches

Source for all above charts: CMIE

Passenger vehicle sales (Nos)

Segments Jan-15 Jan-16 y-o-y growth (%)

Apr-Dec FY15

Apr-Dec FY16

y-o-y growth (%)

Micro 2,000 1,608 -19.6 13,333 18,866 41.5

Mini & Compact 142,671 141,769 -0.6 1,314,215 1,439,271 9.5

Super compact and Mid-size 22,833 23,912 4.7 183,404 212,700 16.0

Executive 1,777 861 -51.5 16,832 12,746 -24.3

Premium 246 153 -37.8 1,785 1,697 -4.9

Luxury, Coupe Roadster & Exoti 0 0 - 6 0 -100.0

Vans 18,066 16,617 -8.0 67,075 58,901 -12.2

Passenger cars 187,593 184,920 -1.4 1,596,650 1,744,181 9.2

Multi-utility vehicles 37,911 44,945 18.6 161,834 173,741 7.4

Domestic sales 225,504 229,865 1.9 1,758,484 1,917,922 9.1

Exports 46,230 40,910 -11.5 472,584 464,740 -1.7

Total sales 271,734 270,775 -0.4 2,231,068 2,382,662 6.8

Variant Company Price (in lakhs) (ex-showroom) Segment

A8 L Security Audi 9.15* Luxury sedan

R8 V10 Plus Audi 2.47* Luxury sports car

Panamera Porsche 1.04 * (D) Luxury sports car

XJ Jaguar Land Rover 99.23 (P) and 105.42 (D) Luxury sedan

X5 xDrive30d BMW 75.9 Luxury sports car

320d Prestige variant BMW 35.9 Luxury sedan

320d Sports Line (Navigation) BMW 41.5 Luxury sedan

Source: CMIE

150,000

160,000

170,000

180,000

190,000

200,000

210,000

220,000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

40,000

45,000

50,000

55,000

60,000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

RETAIL INDUSTRY

n Alibaba.com opened its first physical trade facility centre in the country at Jaipur and a hindi portal.

n Amazon India launched a hyperlocal grocery delivery service app in Bengaluru which will provide customers' facility to order daily essential items from store chains such as Big Bazaar, Godrej's Nature's Basket as well as a nearby kirana store. The company also launched seller lending program in partnership with Capital First Ltd to enable fast and easy access to working capital to small and medium businesses on Amazon.in.

n Flipkart entered into exclusive partnership with Kalyan Jewellers to sell its select products online. The company also made an investment of ̀ 6.66 billion in Ekart through a Singapore-based group firm and plans to launch an exchange programme, starting with smart phones and television sets and special 'Big Exchange Days' schemes on the first two days of every month.

n Walmart India signed an agreement with Karnataka government to open ten cash and carry stores in Karnataka. The company also plans to sign three pacts with the Telangana government by end of this month to encourage women in the state to open kirana stores, about the state-run horticulture corporation supplying fruits and vegetables to the company and for maintenance of 'Krishi Marts' set up by the state government.

n The Alibaba-backed Paytm tied up with close to 5,500 stores including 4,000 brand exclusive mobile stores and 1,500 stores of large appliance retailers to sell their products online.

n Big Bazaar Direct tied up with payment service provider Oxigen Services enabling retailers to sell Big Bazaar products to their end customers.

n US retailer of kids clothing, gifts and accessories, Carter ventured into offline retail space in India through Mahindra Retails' BabyOye stores.

n Toonz Retail India entered into partnership with Tariq Albassami Group to set up international stores in the Gulf Cooperation Council region.

Highlights

n Amazon invested around ̀ 19.8 billion in its Indian unit to beef up services for its merchants like warehousing, logistics and marketing. The company plans to acquire online payment service provider Emvantage Payments Pvt Ltd. It also plans to launch global shipping & logistics business and a service to allow merchants to sell used goods on its subsidiary Junglee.com.

Global News

n In its pre-budget proposal, the Retail Consultation Forum made the following recommendations: Increase the ceiling for high-value goods under the Retail Export Scheme to stimulate additional spending by overseas visitors, Grants/tax relief for investment in energy efficiency in retail stores, Retain the 9% VAT rate on certain goods and services and reduce consumer taxes, capital gains tax and excise duties.

n Retailers have urged the Government to cut down on multiplicity of taxes and allowing FDI in multi brand retail.

Budget Expectations

Retail: Key financial indicators (Oct-Dec 2015)

Company Net sales (` mn) Net profi t (` mn) PAT margin (%)

Future Retail Ltd. 33,259.3 146.8 0.4

Aditya Birla Fashion & Retail Ltd. 16,271.7 74.3 0.5

Shoppers Stop Ltd. 9,117.6 236.0 2.6

Future Lifestyle Fashions Ltd. 8,775.5 196.6 2.2

Trent Ltd. 3,836.2 313.3 7.8

Note: Net profit: PAT net of prior period and extraordinary itemsSource: CMIE

STEEL INDUSTRY

n The government imposed a minimum import price (MIP) ranging from US$ 341 to US$ 752 per tonne on 173 steel products to provide relief to the domestic steel industry. New MIP rates would be applicable for a period of 6 months from the date of notification i.e. Feb 5, 2016.

n The Indian Steel Association sought an immediate dispensation in the form of a special 'steel package' for the industry to tide over the current crisis to the Ministry of Steel and Indian Banks Association.

n Electrosteel Castings inaugurated its US$ 6.6 mn warehouse in Bahrain. The warehouse in Bahrain will be a one stop solution for water projects, for the Bahrain & Middle East markets.

n The JSW Group inked a pact with the Maharashtra government to set up JSW Institute of Skill Development and Training for Trainers. The memorandum of understanding (MoU) aims to create state-of-the-art infrastructure with world-class faculty and curriculum of training in line with international standards of skill development.

n Tata Steel SEZ plans to invest about ` 20-25 billion for development of infrastructure at Gopalpur in Odisha in the near term.

n The board of Bhushan Steel Ltd approved for hiving off the company's plants located at Sahibabad in Uttar Pradesh and Khopoli in Maharashtra through a slump sale.

n Rourkela Steel Plant developed around 20 new specialised products, including for the defence sector as part of its drive to slash the country's import burden and adopt the 'Make in India' mission.

n Jindal Stainless (Hisar) Ltd plans to expand its cold rolling capacity from 2.75 lakh tonnes (LT) to 4 LT in 2-3 years.

n Modulex India plans to invest ` one billion to set up a modular steel factory in Pune.

The industry has made the following recommendations in its pre-budget memorandum:

n To hike import duty on flat and long steel products - some of the largest imported steel products to India.

n A reduction in the import duty on iron ore.

n A reduction in import duty on coking coal.

Highlights

Budget Expectations

Trend in HRC and CRC prices- Mumbai (`/tonne)

HR Coils (2.00 mm) CR Coils (1 mm)

Finished Steel Production

Production (LHS) Growth (RHS)

'000 Tonnes %

Source for all above charts: CMIE

Steel: Key financial indicators (Oct-Dec 2015)

30,000

32,000

34,000

36,000

38,000

40,000

42,000

44,000

46,000

48,000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

-10

-8

-6

-4

-2

0

2

4

6

6,000

6,500

7,000

7,500

8,000

8,500

9,000

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Company Net sales (` bn)

Operating profi t (` bn)

Net profi t(` bn)

PBDIT margin(%)

PAT margin (%)

Tata Steel Ltd. 90.6 14.7 4.7 16.3 5.1

Steel Authority Of India Ltd. 89.4 -13.8 -16.1 -15.5 -17.8

J S W Steel Ltd. 72.7 8.8 -3.3 12.1 -4.5

Jindal Steel & Power Ltd. 31.8 4.2 -6.3 13.3 -19.8

Bhushan Steel Ltd. 25.4 3.6 -10.6 14.3 -41.6

Note: Operating profi t: PBDIT net of prior period and extraordinary items (P&E) & other income; Net profi t: PAT net of P&ESource: CMIE

n The Government of India initiated the process of settlement of ̀ 30 billion dues related to some 'blackout and left-out' cases which found no mention in the Amended Technology Upgradation Fund Scheme (ATUFS ).

n The Directorate General of Foreign Trade announced that yarn (other than sewing thread) with less than 85% of cotton and not for retail sale (grey and dyed) would attract duty drawback of 3% (cap per unit of ` 11.50) and 3.6% (cap per unit of ` 19.30), respectively, if the central value added tax (Cenvat) facility is not availed of by exporters.

n The Southern India Mills' Association (SIMA) urged the Chief Minister of Tamil Nadu to reduce the power tariff considering the steep reduction in fuels meant for power generation.

n The US-based apparel brand Urban Factory plans to open stores in Bengaluru and Hyderabad by the middle of 2016.

n Jaya Shree Textiles, a unit of Aditya Birla Nuvo, to focus on linen fabrics to drive growth and has drawn up plans to open more stores across the country.

n Being Human Clothing plans to enter the active-wear category by April 2016.

n The Gandhigram Trust in Tamil Nadu's Dindigul district plans to start cotton procurement and sales centre, a first for the state. The Trust plans to revive 'karunkanni,' an indigenous cotton variety on the verge of extinction.

n Trident Ltd announced that it has achieved technology stabilisation for bed linen unit at Budni, Madhya Pradesh. The bed linen unit comprises 500 looms with technology and matching equipment for processing & packaging, capable of producing 43.2 mn meters of bed linen per annum.

TEXTILE & GARMENT INDUSTRY

Highlights

Fabrics production(Million sq. metres)

Cotton and Synthetic yarn production ('000 tonnes)

Cotton yarn production Synthetic yarn production

Budget Expectations

The industry has made the following recommendations in its pre-budget memorandum:

n In order to remove the differential tax treatment in the value chain in textile and apparel sector, the industry expects reduction in excise duty on MMF as this would reduce the huge gap between the duties on man-made fibres and cotton.

n The Southern India Mills Association (SIMA), along with other associations of the textile industry sought extension of 3% interest subvention on cotton yarn export.

Source for all above charts: CMIE

Textiles & Garments: Key financial indicators (Oct-Dec 2015)

Company Net sales (` bn) Operating profi t (` bn)

Net profi t (` bn)

PBDIT margin (%)

PAT margin (%)

Alok Industries Ltd. 32.9 -8.3 -16.4 -25.1 -49.5

Grasim Industries Ltd. 23.4 4.6 2.6 19.6 11.0

Vardhman Textiles Ltd. 14.4 2.9 1.3 19.9 8.8

Aditya Birla Nuvo Ltd. 13.9 1.8 0.4 12.8 3.1

Arvind Ltd. 13.4 2.1 0.9 15.3 6.3

N.A.: Not applicable (losses incurred)Note: Operating profi t: PBDIT net of prior period and extraordinary items (P&E) & other income; Net profi t: PAT net of P&E Source: CMIE

4,800

4,900

5,000

5,100

5,200

5,300

5,400

5,500

5,600

5,700

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

150

190

230

270

310

350

390

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

TWO-WHEELER AND THREE-WHEELER INDUSTRY

Highlights

n US-based two wheeler manufacturer UM Motorcycle launched three new cruisers – Renegade Commando, Renegade Classic, and Renegade Sport S – in the price range between ̀ 1.49 lakh and ̀ 1.69 lakh (ex-showroom, Delhi).

n Bajaj Auto launched a new variant of its entry-level motorcycle CT100 priced at ` 30,990 (ex-showroom Delhi). Bajaj Auto also aims to launch new motorcycle brande 'V' by March 2016. The new motorcycle is expected to be priced between ̀ 60,000 and ̀ 70,000.

n Kinetic Group venture, Kinetic Green Energy and Power Solutions launched its indigenously designed battery operated e-three wheeler 'Kinetic Safar' priced at ̀ 1.28 lakh (ex-showroom Delhi).

n Mahindra has launched its all electric scooter, GenZein the Californian city in US. GenZe has a removable lithium-ion battery that can be recharged at any standard electrical outlet.

n TVS Motor launched the new TVS ApacheRTR 200 4V priced in the range of ` 88,990 to ` 1,15,000 (ex-showroom Delhi) and a new TVS Victor priced in the range of ̀ 49,490 to ̀ 51,490 (ex-showroom Delhi). The company also launched its new four stroke moped TVS XL 100 priced at ̀ 29,539 (ex-showroom) in Tamil Nadu.

n Triumph launched Bonneville Street Twin at a price of ` 6.9 lakh (ex-showroom Delhi) and Bonneville T120 at a sticker price of ̀ 8.7 lakh (ex-showroom Delhi).

n Japanese two wheeler manufacturer, India Yamaha Motor launched the new Roadster Motard - MT-09, priced at Rs 1.02 million (ex-showroom Delhi). The model will be imported as a Completely Built Unit by the company and be available in two exterior colours - Race Blue, Matt Grey.

n Honda Motorcycle and Scooter India launched Navi priced at ` 39,500 (ex-showroom Delhi). The new vehicle will come in 5 colour options.

n Harley Davidson's Indian arm launched the new 2016 Sportster 1200 Custom, priced at ̀ 8.9 lakh (ex-showroom Delhi).

n Electric two-wheeler maker Hero Electric launched the electric dumper with a payload capacity of 250 kg and priced at ̀ 1.75 lakh.

n Honda Motorcycle and Scooter India plans to expand its network by 400-500 in 2016-17. Currently, the company has a network of 4,250 dealers, branches, sub-branches and authorised service centres.

Two-wheeler: Domestic sales volume (mn)

Three-wheeler: Domestic sales volume (Nos.)

Two wheelers & Three wheelersSource for all above charts: CMIE

Two & three wheelers: Key financial indicators (Oct-Dec 2015)

Segments Jan-16 Apr-Jan FY16

Vol (Nos) y-o-y growth (%) Vol (Nos) y-o-y growth (%)

Domestic Sales

Two wheelers 1,362,881 2.6 13,625,978 1.4

Three wheelers 43,677 11.5 441,994 -2.9

Exports

Two wheelers 198,188 9.7 2,141,645 0.9

Three wheelers 26,782 -20.1 359,657 3.0

Source: CMIE

Company Operating profi t (` bn)

Net s ales(` bn)

Net profi t (` bn)

PBDIT margin (%)

PAT margin (%)

Hero Motocorp Ltd. 72.9 11.4 8.0 15.6 10.8

Bajaj Auto Ltd. 55.6 11.7 9.0 21.1 15.6

T V S Motor Co. Ltd. 29.4 2.0 1.1 6.9 3.8

Eicher Motors Ltd. 12.8 3.7 2.5 28.6 18.8

Atul Auto Ltd. 1.5 0.3 0.2 16.6 10.5

Note: Operating profi t: PBDIT net of prior period and extra-ordinary items (P&E) & Other income; Net profi t: PAT net of P&ESource: CMIE

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

30000

35000

40000

45000

50000

55000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

Automotive

Passenger vehicle

Commercial vehicle

2 & 3- wheeler

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