India enters $100 billion club in M&A

For the first time in 2018 the Indian market witnessed, 1200 deals worth $110 billion or Rs.71,000 crore as per Grant Thorton’s(GT) annual Dealtracker. M&A transactions were at $90 bn and PE at $20 bn.
As per the GT report deals worth $ 60 billion were concluded in 2017, and $ 57 billion in 2016. This was an 80% jump over deal value in 2017.

The on-going capital market and regulatory reforms, constant amendments to reforms like GST, Real Estate Regulatory Authority(RERA), Insolvency and Bankruptcy Code (IBC), and concrete efforts to improve ease of doing business in India are signs of increasing depth and maturity, making the Indian markets more attractive. Furthermore, the surge in the M&A deal activities was mainly driven by the objectives of consolidating by expanding the market share, buying technology and diversifying market presence. Corporates improved their inorganic growth strategy through divestment of non-core assets, expanded into newer business segments, and hunted for bargain purchases following the introduction of IBC during 2018.
#autojobs4u #automotivejobs #India #Indianmarket #M&A

Comments

LCV to benefit greatly from Indian middle class growth

Globally, LCVs account for 75% of commercial vehicles sales but in India, it is only 62%. Indian middle class which is growing at a healthy pace will bolster growth in the commercial vehicles space in India going forward and the biggest beneficiary will be the light commercial vehicles (LCV) segment The increase in urbanisation and consumption will lead to shifts in market segments and LCV will play a crucial role in last mile connectivity. Industry experts feel that there are 3 big challenges the industry needs to overcome to realise this sales potential which are lack of availability of finance due to liquidity crunch at NBFC, the upcoming BS-VI emission norms and a lack of drivers. With the introduction of BSVI, the cost hike will be much higher than the prediction of 5%-7%. The electric and autonomous vehicles are inevitable in future and the keys to growth will be reducing time taken to bring new models to the market, making vehicle platforms more flexible and dynamic, and st...

Nandan Nilekani on Self-drive cars and e-vehicles future in India

The Infosys co-founder believes that India needs disruption right now to tackle smoggy skies, snarling traffic jams and rising population which has become hallmark of every metro city in the country. As per him the problems have become too big and the “chalta hai” attitude would not work anymore. The current technology advancements do not offer a solution to the struggles of navigating India’s urban maze and it is high time for marriage of tech-driven transit solutions like self-drive cars, electric vehicles and public transport with ride share to provide the solution. Given its population density, mass transit systems are the need of the hour in India and car-pooling must be encourage to eliminate personal automobile ownership. To read more about future electric vehicles click on: https://www.autojobs4u.com/autojobs4ublog/articles/Electric-Vehicle-Segment-to-generate-10-million-jobs.php #autojobs4u #Self-drivecars #EV #India #Automobileindustry #Automotiveupdates

EVs to get Rs.50,000 rebate

The Indian govt is planning to incentivise purchase of electric vehicle by bringing them into the ambit of priority sector lending and lowering of interest rates on loans to make purchase of EVs affordable which would result in rebate of Rs.50,000. As per SIAM high cost (2 to 2.5 times of conventional vehicles) is the biggest factor for slow penetration of EVs. The other bigger challenge is range per charge (EVs have 1/4 that of a conventional vehicle). In FY18, 56000 EVs were sold which was up from 2500 in FY17. Out of this electric 2-wheelers dominated with 54,800 units, up from 23000 units in FY17. Area of concern is electric four wheelers which witnessed a drop from 2000 units at FY17 to 1200 units in FY18. The govt of India is aiming at taking share of EVs to 15% in next 5 years from the current share which is negligible. The major challenge in EV adoption is the charging infrastructure facilities and to address that govt has already issued notifications to facilitate domesti...

Search This Blog