Mumbai: According to the findings of CBRE's latest report titled "India Retail Market view", India witnessed increased transaction activity and retailer expansion in the first quarter of 2012. Leading brands and retailers pursued expansion plans aggressively, increasing their presence across key retail hubs. In all the seven cities presented in the review, the retail real estate market appears to be promising with an increase in retailer enquiries. Retail mall rentals witnessed growth in prime city micro markets of Delhi, while values in high streets increased in Mumbai, Bangalore and Pune.
The same can be attributed to the heightened interest by retailers coupled with a low base of supply addition as developers continue to focus on attracting tenants in completed products and reducing current vacancy rather than launching new projects. About 1.12 million sq ft of mall supply was added in H1 2012 (concentrated largely in Bangalore), which was less than 20% of almost 6 million sq ft of space added during the same period last year.
In Mumbai, international automobile majors such as Mini Cooper, Lamborghini and Volkswagen continued to be key occupiers of retail space with these brands opening their independent showrooms spread over an area of 2,500 - 12,000 sq ft.
Mini Cooper opened its flagship showroom at Santacruz (W) and Lamborghini and Volkswagen took space at Prabhadevi and Hughes Road respectively.
Steady demand levels and limited supply led to a marginal rental increment of 3-6% in leading high street locations of Linking Road, Colaba Causeway, whilst values increased by 7-8% in Kemps Corner. The demand for prime retail space continued to remain strong in high street markets such as Linking Road, Colaba Causeway and Breach Candy. Nascent high street areas of Borivali, Powai, S.V Road (stretch from Santa Cruz West to Andheri West) also gained prominence with brands preferring to open stores in these locations. During this review period, Linking Road observed opening of stores such as Guess, Hush Puppies and The Hab while Colaba Causeway and Waterfield Road witnessed space take up from retailers such as Pavers England, USPA, Hometown Cafe, Bora Bora, the latter two being new F&B concepts.
Palladium Annexe, part of the existing Palladium Mall at Lower Parel, commenced operations with opening of stores by brands such as Gucci, Bottega Veneta, Jimmy Choo, Tumi, Ermenegildo Zegna and Tag Heuer. This would be the first time Ermenegildo Zegna has taken up space outside the confines of a five star Hotel. Cafe Royale and Grillopolis opened their first stores in Market City mall in Kurla during the first half of 2012.
Success in my Habit
Wednesday, August 1, 2012
InMobi acquires UK-based Metaflow Solutions
Bangalore: InMobi has acquired UK-based Metaflow Solutions for an undisclosed sum, the Bangalore and San Francisco-based mobile advertising network announced on Tuesday.
The latest acquisition comes less than a month after InMobi bought over San Francisco-based MMTG Labs. The financial details of both transactions are yet to be disclosed by the parties involved.
"Our acquisition of Metaflow Solutions will help us to continue to rapidly expand the distribution and monetisation of content for our developers and publisher partners," Naveen Tewari, founder and chief executive, InMobi, said in a press statement.
Metaflow, a mobile app management and distribution company, will see its entire team absorbed by InMobi, and will become an integral part of InMobi's developer-oriented efforts, led by Piyush Shah, vice-president and general manager, developer platforms and performance advertising, according to the press release.
"With the recent acquisition of MMTG Labs, along with today's acquisition of Metaflow, we will augment our value proposition by offering highly compelling distribution, monetisation, and engagement solutions to app developers globally," Shah said.
The latest deal is further affirmation of InMobi's strategy of growing through the inorganic route, as it looks to unseat global leaders Google and Apple in the $6 billion global mobile advertising industry.
The company has been intensifying its efforts to capture a greater share of the lucrative North American market, which contributes almost a quarter of the global market share. It estimates that it reaches about 500 million consumers, in over 165 countries, through more than 93.4 billion mobile ad impressions monthly.
InMobi has significantly ramped up its acquisition activity, after Japanese telecom company SoftBank invested $200 million in September 2011, and what is still regarded as one of the largest investment in the mobile internet space till date.
The investment - which was paid out in two tranches - has played a significant role in bulking up InMobi's war chest as it scouts for companies to add to its portfolio.
Other backers of the start-up include venture capital firms Kleiner Perkins Caulfield Byers and Sherpalo Ventures, both of which have invested $15.6 million across three rounds of funding, prior to the SoftBank investment.
The latest acquisition comes less than a month after InMobi bought over San Francisco-based MMTG Labs. The financial details of both transactions are yet to be disclosed by the parties involved.
"Our acquisition of Metaflow Solutions will help us to continue to rapidly expand the distribution and monetisation of content for our developers and publisher partners," Naveen Tewari, founder and chief executive, InMobi, said in a press statement.
Metaflow, a mobile app management and distribution company, will see its entire team absorbed by InMobi, and will become an integral part of InMobi's developer-oriented efforts, led by Piyush Shah, vice-president and general manager, developer platforms and performance advertising, according to the press release.
"With the recent acquisition of MMTG Labs, along with today's acquisition of Metaflow, we will augment our value proposition by offering highly compelling distribution, monetisation, and engagement solutions to app developers globally," Shah said.
The latest deal is further affirmation of InMobi's strategy of growing through the inorganic route, as it looks to unseat global leaders Google and Apple in the $6 billion global mobile advertising industry.
The company has been intensifying its efforts to capture a greater share of the lucrative North American market, which contributes almost a quarter of the global market share. It estimates that it reaches about 500 million consumers, in over 165 countries, through more than 93.4 billion mobile ad impressions monthly.
InMobi has significantly ramped up its acquisition activity, after Japanese telecom company SoftBank invested $200 million in September 2011, and what is still regarded as one of the largest investment in the mobile internet space till date.
The investment - which was paid out in two tranches - has played a significant role in bulking up InMobi's war chest as it scouts for companies to add to its portfolio.
Other backers of the start-up include venture capital firms Kleiner Perkins Caulfield Byers and Sherpalo Ventures, both of which have invested $15.6 million across three rounds of funding, prior to the SoftBank investment.
Gulf Oil, Hinduja Estates to develop large realty project in Hyderabad
Hyderabad: Gulf Oil Corporation Ltd has entered into a joint development agreement with Hinduja Estates for development of the 76 acre company land in Hyderabad.
The project, to be completed in five-six years will be located at their campus close to the busy residential-cum-business hub in Kukatpally, Hyderabad.
The company has agreed that the project will be taken up with 35:65 per cent based on the recommendations of property consultants. The company’s contribution will be land and the finances will be provided by Hinduja Estates, the developer.
The Managing Director of Gulf Oil Corporation, Mr Subhas Pramanik, told Business Line, “It is proposed to invest up to Rs 3,500-crore in the real estate project over the next five-six years. It will have over 10 million square feet of space in the project.”
The company contribution to the project is limited to land. “Based on the outcome of the project, we will be entitled to 35 per cent of the revenue and the developer the rest of the funds,” he said.
“The project will be developed like a township with residential, commercial and an integrated facility for research and development companies. The plans for 10.2-million sq ft have been frozen and we hope to secure various clearances by the end of the year,” he said.
The company had entered into a similar project development agreement with Hinduja Realty for their mixed use real estate project in Bangalore.
Its shares closed the day at Rs 89.75 up 3.52 per cent.
The project, to be completed in five-six years will be located at their campus close to the busy residential-cum-business hub in Kukatpally, Hyderabad.
The company has agreed that the project will be taken up with 35:65 per cent based on the recommendations of property consultants. The company’s contribution will be land and the finances will be provided by Hinduja Estates, the developer.
The Managing Director of Gulf Oil Corporation, Mr Subhas Pramanik, told Business Line, “It is proposed to invest up to Rs 3,500-crore in the real estate project over the next five-six years. It will have over 10 million square feet of space in the project.”
The company contribution to the project is limited to land. “Based on the outcome of the project, we will be entitled to 35 per cent of the revenue and the developer the rest of the funds,” he said.
“The project will be developed like a township with residential, commercial and an integrated facility for research and development companies. The plans for 10.2-million sq ft have been frozen and we hope to secure various clearances by the end of the year,” he said.
The company had entered into a similar project development agreement with Hinduja Realty for their mixed use real estate project in Bangalore.
Its shares closed the day at Rs 89.75 up 3.52 per cent.
Gulf Oil, Hinduja Estates to develop large realty project in Hyderabad
Hyderabad: Gulf Oil Corporation Ltd has entered into a joint development agreement with Hinduja Estates for development of the 76 acre company land in Hyderabad.
The project, to be completed in five-six years will be located at their campus close to the busy residential-cum-business hub in Kukatpally, Hyderabad.
The company has agreed that the project will be taken up with 35:65 per cent based on the recommendations of property consultants. The company’s contribution will be land and the finances will be provided by Hinduja Estates, the developer.
The Managing Director of Gulf Oil Corporation, Mr Subhas Pramanik, told Business Line, “It is proposed to invest up to Rs 3,500-crore in the real estate project over the next five-six years. It will have over 10 million square feet of space in the project.”
The company contribution to the project is limited to land. “Based on the outcome of the project, we will be entitled to 35 per cent of the revenue and the developer the rest of the funds,” he said.
“The project will be developed like a township with residential, commercial and an integrated facility for research and development companies. The plans for 10.2-million sq ft have been frozen and we hope to secure various clearances by the end of the year,” he said.
The company had entered into a similar project development agreement with Hinduja Realty for their mixed use real estate project in Bangalore.
Its shares closed the day at Rs 89.75 up 3.52 per cent.
The project, to be completed in five-six years will be located at their campus close to the busy residential-cum-business hub in Kukatpally, Hyderabad.
The company has agreed that the project will be taken up with 35:65 per cent based on the recommendations of property consultants. The company’s contribution will be land and the finances will be provided by Hinduja Estates, the developer.
The Managing Director of Gulf Oil Corporation, Mr Subhas Pramanik, told Business Line, “It is proposed to invest up to Rs 3,500-crore in the real estate project over the next five-six years. It will have over 10 million square feet of space in the project.”
The company contribution to the project is limited to land. “Based on the outcome of the project, we will be entitled to 35 per cent of the revenue and the developer the rest of the funds,” he said.
“The project will be developed like a township with residential, commercial and an integrated facility for research and development companies. The plans for 10.2-million sq ft have been frozen and we hope to secure various clearances by the end of the year,” he said.
The company had entered into a similar project development agreement with Hinduja Realty for their mixed use real estate project in Bangalore.
Its shares closed the day at Rs 89.75 up 3.52 per cent.
USFDA nod for Zydus Cadila schizophrenia drug
New Delhi: Zydus Cadila has received US Food and Drug Administration (FDA), the US health regulator's, approval to promote aripiprazole orally disintegrating tablets in the US market.
The drug is used as an anti- psychotic medication for the treatment of schizophrenia.
Cadilla has received tentative permission for the tablets in the strengths of 10 miligrams (MG), 15 (MG), 20 (MG) and 30 (MG), according to a company statement.
The drug is used as an anti- psychotic medication for the treatment of schizophrenia.
Cadilla has received tentative permission for the tablets in the strengths of 10 miligrams (MG), 15 (MG), 20 (MG) and 30 (MG), according to a company statement.
RBI breather for exporters on foreign exchange earnings
The Reserve Bank of India relaxed some of the restrictions it had placed on the foreign exchange market over the last six months.
On Tuesday, it allowed exporters to retain all their foreign exchange earnings in foreign currency, for a limited period. It allowed them to partially cancel and rebook forward contracts.
The moves appear to be aimed at boosting the turnover in the foreign exchange market. Exporters will also get some relief. But the movement of the rupee will not be impacted by these tweaks.
In May, the RBI had ordered that only half of the foreign exchange earnings could be held as it is in foreign currency in Exchange Earner’s Foreign Currency (EEFC) account.
The move was aimed at stemming the rapid depreciation in the rupee against the dollar
Partial relief
On Tuesday, the RBI gave partial relief to companies by allowing them to retain the entire foreign exchange earnings in EEFC account, but for a limited period only. The foreign currency has to be converted in to rupee on the last day of the month following the month in which the money is received.
For instance, if $1,000 is received on June 14, 2012, it can be parked in EEFC account only till July 31, 2012.
The amount converted to rupee can, however, be reduced to the extent of payment commitments in foreign currency of the company.
Lobbying by industry
According to Mr Abhishek Goenka, CEO, India Forex Advisors, factors such as lobbying by exporters and industry could be behind this move. Banks complaining about contraction in volumes could be another reason why the central bank has backtracked slightly.
Foreign exchange turnover in over-the-counter market is down from daily average of $26 billion in March to $20 billion in June.
It could be to resurrect volumes and activity in forex market that the RBI has now allowed exporters to cancel and rebook 25 per cent of their hedged position.
There were apprehensions of misuse of this facility by exporters. They could buy and sell multiple times with the same invoice as underlying under the guise of adjusting the hedged position. This facility was entirely withdrawn in December last year to curb speculation in rupee.
On Tuesday, it allowed exporters to retain all their foreign exchange earnings in foreign currency, for a limited period. It allowed them to partially cancel and rebook forward contracts.
The moves appear to be aimed at boosting the turnover in the foreign exchange market. Exporters will also get some relief. But the movement of the rupee will not be impacted by these tweaks.
In May, the RBI had ordered that only half of the foreign exchange earnings could be held as it is in foreign currency in Exchange Earner’s Foreign Currency (EEFC) account.
The move was aimed at stemming the rapid depreciation in the rupee against the dollar
Partial relief
On Tuesday, the RBI gave partial relief to companies by allowing them to retain the entire foreign exchange earnings in EEFC account, but for a limited period only. The foreign currency has to be converted in to rupee on the last day of the month following the month in which the money is received.
For instance, if $1,000 is received on June 14, 2012, it can be parked in EEFC account only till July 31, 2012.
The amount converted to rupee can, however, be reduced to the extent of payment commitments in foreign currency of the company.
Lobbying by industry
According to Mr Abhishek Goenka, CEO, India Forex Advisors, factors such as lobbying by exporters and industry could be behind this move. Banks complaining about contraction in volumes could be another reason why the central bank has backtracked slightly.
Foreign exchange turnover in over-the-counter market is down from daily average of $26 billion in March to $20 billion in June.
It could be to resurrect volumes and activity in forex market that the RBI has now allowed exporters to cancel and rebook 25 per cent of their hedged position.
There were apprehensions of misuse of this facility by exporters. They could buy and sell multiple times with the same invoice as underlying under the guise of adjusting the hedged position. This facility was entirely withdrawn in December last year to curb speculation in rupee.
Tuesday, July 31, 2012
R-Power's $800-mn loan sanctioned
Mumbai: Four international banks have sanctioned Reliance Power $800 million (Rs 4,432 crore) of debt for its ultra mega power project in Sasan. Memoranda of understanding for these loans were signed during US President Barack Obama’s visit to India in 2010.
While US Exim Bank sanctioned $600 million, the remaining would be provided by Standard Chartered Bank, Mizuho Bank and Developmental Bank of Singapore. Reliance Power says it was decided the loans would be provided at a fixed interest rate of 3.6 per cent a year, and this could help the company save on interest costs.
“This financing, along with financing from Chinese banks, would support import of world-class equipment for this prestigious project,” said Reliance Power chief executive J P Chalasani. The loans would be used to refinance the equipment purchased for the 4,000-Mw ultra mega power project’s captive coal mine. Most of the equipment was purchased from Caterpillar Inc in the US.
The first unit of the Sasan project is expected to be commissioned in December and the coal mine is expected to be operational before that. Earlier, the company had earlier tied up about $1.1 billion (Rs 6,094 crore) from Chinese banks. Equipment for the power plant, such as boiler-turbine and generators, has already been purchased from Chinese suppliers.
While US Exim Bank sanctioned $600 million, the remaining would be provided by Standard Chartered Bank, Mizuho Bank and Developmental Bank of Singapore. Reliance Power says it was decided the loans would be provided at a fixed interest rate of 3.6 per cent a year, and this could help the company save on interest costs.
“This financing, along with financing from Chinese banks, would support import of world-class equipment for this prestigious project,” said Reliance Power chief executive J P Chalasani. The loans would be used to refinance the equipment purchased for the 4,000-Mw ultra mega power project’s captive coal mine. Most of the equipment was purchased from Caterpillar Inc in the US.
The first unit of the Sasan project is expected to be commissioned in December and the coal mine is expected to be operational before that. Earlier, the company had earlier tied up about $1.1 billion (Rs 6,094 crore) from Chinese banks. Equipment for the power plant, such as boiler-turbine and generators, has already been purchased from Chinese suppliers.
PM sets up panel to review taxation of development centres, IT sector
New Delhi: The Prime Minister has constituted a Committee to Review Taxation of Development Centres and the Information Technology Sector.
This will be headed by former Chairman of IRDA and Central Board of Direct Taxes Mr N. Rangachary.
The Committee will engage in consultations with stakeholders and related Government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector, a Prime Minister Office Statement said.
Committee members include Ms Anita Kapoor (DG, International Taxation) and Ms Rashmi Sahani Saxena (DIT-TP).
The Committee will engage in consultations with stakeholders and related Government departments to finalise the approach to taxation of Development Centres and suggest any circulars that need to be issued. It will also go for sector-wide consultations and finalise the Safe Harbour provisions.
It will examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
The new committee has been formed at a time when an Expert Committee under the chairmanship of Mr Partho Shome is engaged in a widespread consultation process and finalise the GAAR Guidelines. This committee is expected to submit its report by September 30.
IT sector
“While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT sector such as the approach to taxation of Development Centres, tax treatment of ‘onsite services’ of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010,” the statement said.
Safe Harbour provisions, though proposed in the Finance Bill 2010, are yet to be operationalised. Safe harbour provisions have the advantage of being a good risk mitigation measure.
The Government has noted that nearly 750 multinational companies are operating development centres in over 1,100 locations in India. These entities are involved in product development, analytical work and software development.
However, India can not claim to have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their tax, the statement added.
This will be headed by former Chairman of IRDA and Central Board of Direct Taxes Mr N. Rangachary.
The Committee will engage in consultations with stakeholders and related Government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector, a Prime Minister Office Statement said.
Committee members include Ms Anita Kapoor (DG, International Taxation) and Ms Rashmi Sahani Saxena (DIT-TP).
The Committee will engage in consultations with stakeholders and related Government departments to finalise the approach to taxation of Development Centres and suggest any circulars that need to be issued. It will also go for sector-wide consultations and finalise the Safe Harbour provisions.
It will examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
The new committee has been formed at a time when an Expert Committee under the chairmanship of Mr Partho Shome is engaged in a widespread consultation process and finalise the GAAR Guidelines. This committee is expected to submit its report by September 30.
IT sector
“While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT sector such as the approach to taxation of Development Centres, tax treatment of ‘onsite services’ of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010,” the statement said.
Safe Harbour provisions, though proposed in the Finance Bill 2010, are yet to be operationalised. Safe harbour provisions have the advantage of being a good risk mitigation measure.
The Government has noted that nearly 750 multinational companies are operating development centres in over 1,100 locations in India. These entities are involved in product development, analytical work and software development.
However, India can not claim to have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their tax, the statement added.
FDA nod for GVK Biosciences' Ahmedabad unit
Hyderabad: GVK Biosciences, a contract research organisation, announced on Monday that its clinical pharmacology unit at Ahmedabad has cleared a US drug regulatory audit.
The United States Food and Drug Authority (USFDA) team visited and audited the facility which was commissioned in 2010. It has three clinics with 110 beds. It has already got approval from the Indian, Brazilian and Turkish regulators. The facility carries out important scientific studies related to drug development for pharma customers (drug companies, research institutes, etc) and submits them to various regulatory authorities.
Studies can be done on healthy human volunteers, in special populations and some specific patient-based projects, a release from the company said.
The Chief Executive Officer of GVK Biosciences, Mr Manni Kantipudi, said now customers can choose between Ahmedabad and Hyderabad, which already has regulatory approvals. The Hyderabad facility has four clinics and 144 beds with necessary scientific equipment.
Since its establishment in 2003, the company has completed over 750 studies, including those intended for regulatory submissions.
The United States Food and Drug Authority (USFDA) team visited and audited the facility which was commissioned in 2010. It has three clinics with 110 beds. It has already got approval from the Indian, Brazilian and Turkish regulators. The facility carries out important scientific studies related to drug development for pharma customers (drug companies, research institutes, etc) and submits them to various regulatory authorities.
Studies can be done on healthy human volunteers, in special populations and some specific patient-based projects, a release from the company said.
The Chief Executive Officer of GVK Biosciences, Mr Manni Kantipudi, said now customers can choose between Ahmedabad and Hyderabad, which already has regulatory approvals. The Hyderabad facility has four clinics and 144 beds with necessary scientific equipment.
Since its establishment in 2003, the company has completed over 750 studies, including those intended for regulatory submissions.
Small and Light CV Segment to more than double to 8 lakh units by 2015-16: Report
Mumbai: The Indian small and light commercial vehicle segment, which is one of the fastest growing segments in the country is expected to more than double by 2015-16 and grow at 18.5% compounded annual growth rate for the next five years, according to research report published by leading research agency Frost & Sullivan called 'Strategic Assesment of Small and Light Commercial Vehicles Market in India.'
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
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