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...

Microdots technology to make car almost theft proof

To counter car thefts, Indian govt has decided to adopt microdots technology which is widely used in several counties including South Africa and the US. The vehicles stolen go untraced since auto-lifters take out the engines & other valuable parts before destroying the vehicles. Microdots is a technology in which thousands of micro dots are sprayed over the body of vehicle. These small laser-etched dots contain nano-size (0.5 mm) particles that carry information like unique number and vehicle identification number. These dots can be seen by using UV light and since the dots are sprayed throughout the vehicle body, it becomes easy to trace the vehicle as even a small part of the dismantled car can be used to trace the stolen vehicle. The government plans to roll out the technology as an optional system initially and the price of this feature is likely to be around Rs 1,000. The car, truck or bus would require at least 10,000 microdots, while at least 5,000 such dots would be neede...

Govt of India notifies phased import duty hike on electric PV parts, lithium-ion cells

With the intention of promoting domestic manufacturing of EVs, Indian Government has notified phased increase in basic customs duty on parts of electric passenger vehicles to be assembled in India to 15% from Apr-20 and 10% on imported lithium-ion cells by Apr-21 As per the road map under the phased manufacturing programme (PMP), it plans to double the basic customs duty on CBU (completely built units) of electric buses and trucks to 50% effective Apr-20. Basic customs duty on parts used in manufacturing electric vehicles (EVs) like AC or DC charge(r, motor and motor controller; power control unit, among others, will also be increased to 15% from NIL at present starting from Apr-21, as the Centre eyes to promote mass adoption of EVs through schemes like FAME II to be rolled out from April. Effective Apr-21, the basic import duty on battery packs used in manufacturing electric vehicles will also be increased to 15% from the current 5% and would be doubled to 10% on lithium ion cel...

Search This Blog