Latin Manharlal Group, A Successful & Leading Provider of Financial Services for over two decades. It has become synonymous name with Reliability & Trust for their customers pan India with more than 200 channel partners and catering to more than 35000 clientele. Latin Manharlal group has evolved itself from mere Equity Broking business to a full fledged Financial Service Provider through its various group companies.
is poised to become the third-largest consumer market behind only the US and
China. The consumer spending in India is expected to grow from USD 1.5 trillion
at present to nearly USD 6 trillion by 2030, a report of World Economic Forum
per the WEP, with an annual Gross Domestic Product (GDP) growth rate of 7.5 per
cent, India is currently the world's sixth-largest economy. Domestic private
consumption, which accounts for 60 per cent of the country's GDP, is expected
to develop into a USD 6-trillion growth opportunity by 2030.
report further added, "If realised, this would make India's consumer
market the third-largest in the world, behind the US and China."
Ingilizian, Head of Consumer Industries and Member of Executive Committee, WEF,
said "as India continues its path as one of the world's most dynamic
consumption environments, private and public-sector leaders will have to take
shared accountability to ensure such consumption is inclusive and responsible.
Notwithstanding the significant growth in consumption, critical societal
challenges will need to be addressed, including skills development and
employment of the future workforce, socio-economic inclusion of rural India,
and creating a healthy and sustainable future for its citizens.”
report 'Future of Consumption in Fast-Growth Consumer Market India' mentioned
that growth of the middle class will lift nearly 25 million households out of
to the report, growth in income will transform India from a "bottom of the
pyramid economy" to a middle class-led one.
expected the future consumption growth will mainly come from rich and densely
populated cities and the thousands of developed rural towns.
said that, "India's top 40 cities will form a USD 1.5 trillion opportunity
by 2030, many thousands of small urban towns will also drive an equally large
spend in aggregate. In parallel, there will be an opportunity to unlock nearly
USD 1.2 trillion of spends in developed rural areas by improving infrastructure
and providing access to organised and online retail."
report was produced in collaboration with Bain & Company builds on consumer
surveys conducted across 5,100 households in 30 cities and towns in India, and
draws from more than 40 interviews with private and public-sector leaders.
Prasad Ojha, Partner and Leader of the Strategy practice at Bain India said,
"It's an exciting future for firms that wish to unlock the consumption
opportunity in India."
report identified three critical societal challenges that need to be addressed
to unlock the potential of these opportunities and to ensure equitable growth -
skills development and employment for the future workforce, socio-economic
inclusion of rural India and healthy and sustainable future.
Purchasing Managers’ Index is an indicator of business
activity both in the manufacturing and services sectors. PMI in October 2018
stood at 53.1 as against 50.3 in October 2017. October 2018 is the 15th
consecutive month of PMI>50, indicating growth in the manufacturing sector.
The Start-up India is a flagship initiative of the
Government of India, intended to build a strong ecosystem that is conducive for
the growth of start-up businesses, to drive sustainable economic growth and
generate large scale employment opportunities. The Government through this
initiative aims to empower start-ups to grow through innovation and design.
DIPP recognized start-ups number touched 14,545 in November
18 as compared to 4610 on October 2017 generating total employment for 130,424
Number of programmes have been undertaken since the launch
of the initiative on 16th of January 2016 by Prime Minister, to transform India
into a country of job creators instead of job seekers.
The 19-Point Start-up
India Action Plan envisages several incubation centres, easier patent filing,
tax exemptions, ease of setting-up of business, a Rs. 10,000 crore corpus fund
and a faster exit mechanism.
The achievements of the Start-up India action plan can be
stated as: simplification and hand holding for compliance regime based on
self-certification, rolling out of mobile app and portal, setting up of
Start-up India hub, legal support and fast-tracking patent examination at lower
costs, relaxed norms of public procurement for start-ups and faster exit for
start-ups,providing funding support
through fund of funds with a corpus of Rs. 10,000 crore, tax exemption on
capital gains, tax exemption to start-ups for 3 years, removal of angel tax,
promoting industry-academia partnership and incubation through launch of Atal
Innovation Mission, harnessing private sector expertise for incubator setup,
building 11 Technology Business Incubators, setting up of 7 new research parks
modelled on the research park setup at IIT Madras, promoting start-ups in the
biotechnology sectors and launching of innovation focused programmes for
India jumped 23 ranks in the World Bank’s Ease of Doing
Business Ranking this year to be ranked at 77. Upward move of 53 ranks in the
last two years is the highest improvement in 2 years by any large country since
2011. India now ranks number one in Ease of Doing Business Report among South
Asian countries compared to 6th in 2014.
So far, India has improved its rank in 6 out of 10
indicators and has moved closer to international best practices (Distance to
Frontier score) on 7 out of the 10 indicators. The most dramatic improvements
have been registered in the indicators related to construction permits and
trading across borders. India's rank improved from 181 in 2017 to 52 in 2018,
in grant of construction permits, an improvement of 129 ranks in a single year.
When comes to trading across borders, India's rank has improved by 66
positions, moving from 146 in 2017 to 80 in 2018.
The Department of Industrial Policy and Promotion ,Ministry
of Commerce and Industry, in collaboration with the World Bank conducts an
annual reform exercise for all States and Union Territories under the Business
Reform Action Plan (BRAP) to improve delivery of various Central Government
regulatory functions and services in an efficient, effective and transparent
manner. States and UTs have conducted reforms to ease their regulations and
systems in areas like labour, environmental clearances, construction permits,
contract enforcement, registering property and inspections. The States have
also enacted Public Service Delivery Guarantee Acts to enforce the timelines on
registrations and approvals.
Ease of Doing Business ranking improved, and it has been
possible because of the transformative measures taken by the Government of India
which includes legislative and regulatory reforms. To support start-ups and
lower tax rates for MSMEs quicker environmental clearances from 600 days to 140
days has been implemented, abolition of inter-state check post after
implementation of GST has been done, enhanced input tax credit and electronic
GST network has been put in place and the creation of commercial courts to fast
track enforcement of contracts and faster security clearances has lent support
to the start-ups in the country.
Among BRICS countries, India has improved its rank from 5th
in 2010 to 3rd in 2018. Various measures were undertaken to ensure this
improved ranking is issuance of construction permits where India’s rank is 52,
in getting electricity connection India’s rank is 24 and in Trading Across
Borders India now ranks at 84. In paying taxes India’s ranking is 121 and in
resolving insolvency India’s ranking stands at 108.
For ease of doing business for start-ups Twenty-One
regulatory changes have been made. For optimization of resource utilisation and
enhance the efficiency of the manufacturing sector, DIPP launched the
Industrial Information System, a GIS-enabled database of industrial areas and
clusters across the country in May 2017. This portal serves as a one-stop
solution to the free and easy accessibility of all industrial information
including availability of raw material – agriculture, horticulture, minerals,
natural resources, distance from key logistic nodes, layers of terrain and
IPRS is proposed to be translated into an annual exercise
covering all the parks across India. The coverage would be widened and updated
to bring in deeper qualitative assessment feedback, bring in technological
intervention and develop it as a tool that helps effectively for demand driven
and need based interventions both by policy makers and investors.
Whenever a Japanese company acquires an overseas asset, the
rationale is typically that it’s finding a way to survive the country's aging
demographics and shrinking returns.
But Hitachi Ltd.'s 800 billion yen ($7.06 billion) purchase
of ABB Ltd.'s
power-grid business is
bigger than that. The deal, while on the expensive side, is high-margin for the
Japanese industrial conglomerate, and could catapult it into the big leagues of
power equipment globally.
Hitachi is nearing an agreement to buy 80.1% of Swiss
engineering giant ABB Ltd.’s power-grid unit, in a deal that values the entire
business at $11 billion. ABB has an option to sell its 19.9% stake three
years after the current deal — Hitachi's largest-ever purchase — is completed. ABB
noted that Hitachi would help provide access to new markets as well as
Combined with the Japanese conglomerate’s other
industrial-equipment business, ABB’s power grids will allow Hitachi to compete
neck-and-neck with General Electric Co.
and Siemens AG. With ABB’s power grids under its belt, Hitachi also
could avoid the fate of so many other global industrial companies, which
have struggled to turn their businesses around. As Japanese conglomerates increasingly talk
about reforming to extract more value and
shed the Japan discount, Hitachi has been ahead of the pack — selling units that no longer fit its strategy and putting more cash
Buying ABB brings Hitachi closer to
its consolidated operating margin target of more than 10% by 2022, compared
with 8% for the group and 6.5% for the power business currently. Other targets loom, too: The Japanese company
is looking to almost double the sales in its power segment to more than 800
billion yen by March 2022 from around 450 billion yen.
Hitachi has almost 800 businesses
spanning everything from construction machinery to nuclear power plants and
healthcare. It’s now cutting its
subsidiaries by 40% to 500 companies, as the Nikkei reported earlier this year, and aimsto focus
on four core areas, of which power and energy is one.
ABB Management Commentary - “Power Grids will strengthen Hitachi
as global leader in energy infrastructure and Hitachi will strengthen Power
Grids’ position as a global leader in power grids. With this transaction, we
are realizing the value we have built through the transformation of Power Grids
over the last four years. Our shareholders will directly benefit through the
return of the proceeds of the divestment. Building on our existing partnership
announced in 2014, the initial joint venture will provide continuity for
customers and our global team’’
ABB investors have long been underwhelmed by the power-grid
business, which is low-margin compared with the Zurich-based firm’s robotics
and factory automation operations.
Announcing the deal, ABB spelt out a road map that
would chart a new course in industrial automation, electrification, robotics
and automation. Analysts said that in
mature markets, the power transmission and distribution (T&D) business has
limited incremental growth opportunities both in terms of orders and profits.
From a technology-driven solutions business earlier, it is now a converter of
raw material into finished goods, where there’s hardly any upside in margins.
ABB Management Commentary – ‘’Our four newly shaped businesses,
each a global leader, will be well aligned to the way our customers operate and
focus stronger on emerging technologies such as artificial intelligence. The
continued simplification of our business model and structure will be a catalyst
for growth and efficiency in our businesses. Our businesses will be further
supported through the transfer of experienced resources from today’s country
ABB: Shaping a leader focused in digital industries
actions to focus, simplify and lead in digital industries for enhanced customer
value and shareholder returns
Focus of portfolio on digital industries through divestment of
Divestment of Power Grids to Hitachi
expands existing partnership and strengthens Power Grids as a global
infrastructure leader with enhanced access to markets and financing.
Enterprise Value of $11 billion for
100% of Power Grids, equivalent to an EV/op. EBITA multiple of 11.2x1.
Crystallizing value from the transformation of
Power Grids including doubling operational EBITA margin since 2014.
ABB initially to retain 19.9% in the
equity of carved-out Power Grids to ensure transition; pre-defined exit option
on 19.9 percent equity at fair market value with floor price at 90% of agreed
Enterprise Value, exercisable by ABB three years after closing.
Closing expected by first half of
ABB intends to return 100% of the
estimated net cash proceeds of $7.6-7.8 billion from the 80.1% sale to
shareholders in an expeditious and efficient manner through share buyback or
Simplification of business model and structure
·Discontinuation of legacy matrix
·Businesses will run all
customer-facing activities as well as business functions and territories,
fostering ABB’s entrepreneurial business culture
·Businesses to be strengthened by
transfer of experienced country management resources
·Existing country and regional
structures including regional Executive Committee roles to be discontinued
after closing of the transaction
·Corporate activities to be focused on
Group strategy, portfolio and performance management, capital allocation, core
technologies and ABB Ability™ platform
Shape four leading businesses aligned with customer patterns
• All businesses global #1 or #2 in attractive
& Discrete Automation
ABB Ability™ tailored digital
solutions will drive customer value in each business whilst capturing synergies
through common platform.
Actions position ABB with a leadership
role in digital solutions, and evolving technologies such as artificial
registering a robust growth in the first quarter of this financial year, the
pace of India’s economic growth is expected to have substantially slowed
in the July-September quarter amid higher fuel prices and a weaker rupee.
a report by rating agency ICRA, the GDP growth of Indian economy is pegged at
7.2 per cent for the second quarter, dragged down by lacklustre agriculture and
industry. The GDP had grown by a higher than expected 8.2 per cent in the first
quarter of the fiscal as compared to the year-ago period.
cited higher fuel prices and weakness in rupee as primary factors dragging the
industrial growth. Further, the country has been affected by heavy rains in
some states leading to massive flooding while the other states are dealing with
significantly deficient and drought like situations resulting in to muted
As per the
report, overall, manufacturing GVA (gross value added) growth is expected to ease
to 7 per cent in Q2 FY 2019 from the healthy 13.5 per cent expansion in
Q1FY2019. The agency said higher commodity prices may support a shallow
recovery in GVA growth in mining and quarrying from the marginal 0.1 per cent
in Q1 FY 2019 to around 2.5 per cent in Q2 FY 2019, despite a slowdown in
services sector growth is expected to rebound to 7.8 per cent in the second
quarter from 7.3 per cent in Q1 FY 2019, buoyed by a sharp pickup in the
expansion in the Government of India’s non-interest revenue expenditure, a mild
rise in growth of bank deposits, air and ports cargo traffic, as well as a
moderation in the pace of FII outflows.
the Indian economy is expected to slow down in the second half of the fiscal,
partly because of the base effect of higher growth last year. Tighter financial
markets, a credit squeeze and the lagged impact of weak currency and high oil
prices will continue to weigh on growth.
Companies report strong prospects from
Railways Business: Extracts from commentary about Railways Business.
Considering strong order book the railway business
of the company is expected to close current fiscal with a revenues of about Rs
1500-1600 crore having clocked a revenues of about Rs 734 crore in H1FY19. The
company has linked up with various vendors in railway business. With ramp up in railway business the vendor
financing have also gone up. But backward integration by the company in
Railways has resulted in improved profitability as well as reduction in payable
days. Focus on streamlining railway supply chain, vendor base and credit terms.
industrial construction sales stood at Rs 100 crore, rail Rs 100 and others
form remaining sales. Railways have
grown significantly and strong traction exists. Government efforts on infra
sector is also helping the overall growth
Kalpataru Power Transmission Ltd
For the Sep 18 quarter, T&D revenues stood
around Rs 1100 crore, Oil and gas and Railway together around Rs 450 crore.
Margins in railways around 9-10%. Strong
orders coming from Pipeline and Railways for next 2-3 years. Strong order
inflows from Railways and International T&D in Sep 18 quarter.
Within industrials, railways account for around 7%
of total sales. Strong traction seen from passenger wagon side, while the demand from freight side bearings
will pick up from now.
New products launched in Railways. Order book is
more than Rs 400 crore will be executed.25%
growth in Railways for FY 19 with margins of 18-20%.
International - Expect
revenue of about Rs 4600 crore in FY19
executable order book of the company as end of Sep 30, 2018 was more than Rs
27000 crore up from about Rs 22400 crore as end of March 31, 2018.
The executable order book consists of only projects where work has already
commenced and if the order waiting for clearance and approvals are included the
order book will be approximately over Rs 35000 crore. Since infrastructure
projects in sectors like railways take 1-1.5 years to complete
investigation/surveys and clearances etc, the company includes only the orders
for which work commenced in the order book.
Performance of first half is not representative of
full year as typically 60% of the revenue of the company will accrue in second
half. For FY19 the company is confident of maintaining/improving the FY18
EBITDA margin levels. The EBITDA margin for FY18 was 9.86% and for H2FY18 was
business has contributed about 67% of the operating turnover and income from
the consultancy has increased by 83% to Rs 292 crore in Q2 FY19 against the
corresponding last quarter revenue of Rs 160 crore.
Company's standalone Order Book stands at Rs 6183 crore as of 30.09.2018 which
is expected to be executed in the next 1 to 3 years. This order book also
includes export order book of Rs 1284 crore as on 30.09.2018. The present
export order book is likely to be executed in 2 to 2.5 years time. As per
delivery schedule Company will start exporting in the second half of FY19.
Over the years, India has emerged as one of
the fastest growing economies in the world and an attractive investment
destination driven by economic reforms and a large consumption base.
Factors including government’s policies on the liberalization of most
sectors for foreign investment, growing opportunities across sectors, skilled
human resource, cost-effective production facilities and strong domestic demand
have played a major role.
According to a new Standard Chartered study,
India has emerged as Asia’s most investment savvy economy and over two-thirds
of the country’s affluent class prefer to use various investment products to
achieve their financial goals and greater social mobility.
While the number of people climbing the
social ladder in the west, when it comes to invest, save and spend, is slowing
down, there is an increase in new group of people in Asia, Middle East and
Africa who are accumulating wealth and improving their personal well being rapidly
and this group of people have been named in the study as ’emerging affluent’.
The study examined the views of emerging affluent consumers from 11 markets
across Asia, Africa and the Middle East.
As per the report of 11,000 emerging
affluent consumers across Asia, Africa and the Middle East, 68 per cent of
Indian people belonging to this segment are using investment products to
achieve their financial goals, as compared to an average figure of 57 per
About 63 per cent of these people in India prefer investing in financial
products as part of their long-term financial plan to meet financial goals and
boost their personal wealth. On the other hand, another popular strategy
adopted by these people was career progression and increment in salary (44 per
cent), followed by starting a new business (25 per cent) to increase their
Saving for their children’s education, which
is also the top savings priority across the markets, was the number one
financial goal for India’s emerging affluents, the study showed.
Investment products, according to the
company for this particular study, refers to fixed income investments,
equities, stocks, unit trusts, mutual funds, self-invested pension funds,
investment-linked insurance, real estate property funds and real estate
investment trusts (REITs).
As per the study, new technology has made it
easy to manage money effectively anywhere in the world. Online banking tools
are playing a key role in effective money management today as the stock
investments, transfers, payments and financial advice is just a touch of a
button away today.