Revenue growth in Q4 FY2019 hits six quarter low

According to a recently released report by the noted credit rating agency ICRA, the broader Q4 financial results reflect growing pressure on the performance front for the companies. The report based on the analysis of 642 companies in the Indian corporate sector underlines revenue growth in Q4 FY2018-19 slipping to six-quarter low at 10%.   Weal consumer sentiments and softening of commodity prices have been cited as the major reasons for somewhat sluggish revenue growth pattern.  Shamsher Dewan, Vice President – Corporate Sector Ratings, ICRA commented, “The weakness in the consumer-linked sectors…

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Increase in FDI limit in defence sector, suggests an industry report

The government should allow a minimum of 51 per cent FDI in defence sector without any riders to linkages with ‘modern technology,’ so as to enable international defence companies to exercise adequate control over joint venture companies, intellectual property rights (IPR) and product quality, suggested an ASSOCHAM-BDO joint study. “The increase in FDI limit will bring in the capital for establishing new facilities and scaling up current facilities while benefitting India through large scale job creation,” noted the study titled, ‘Indian aerospace manufacturing ecosystem,’ conducted by The Associated Chambers of…

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Transport infrastructure will be a key focus area for the new government

Giving a facelift to transport infrastructure will be a key focus for Narendra Modi led NDA government as it begins its second tenure. According to a study by credit rating agency ICRA, the government would decisively take forward some of the mega initiatives it had launched during its first tenure to improve transport infrastructure. “ The new Government is likely to maintain the continuity on the major programmes launched during its last tenure viz. Bharatmala Pariyojana (Highways), Sagarmala (Ports), railway station redevelopment programme, inland waterways development, Namami Gange, Swachh Bharat…

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PE Inflows in Indian Retail double to $1.2 bn in two years

(Executive summary of a recently released report by Anarock) Further liberalization in FDI policies – 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route (against the previous 49%) – has attracted major global PE funds to double their investments in the Indian retail sector. As per ANAROCK’s Private Equity in Indian Real Estate report, the total private equity inflows in the Indian retail sector between 2015-2018 stood at USD 1.84 bn. Of this, nearly USD 1.2 bn were pumped in between 2017-2018 alone.   US and Canada-based PE funds together invested more…

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Foreign investors infuse $2.5 billion in warehouse centric investment platforms

According to a recently released report by credit rating agency ICRA, “the industrial warehousing segment has witnessed rapid growth in recent years due to healthy demand from occupants in sectors such as automotive manufacturing, third party logistics services and e-commerce. In addition, regulatory interventions such as implementation of the GST and infrastructure status accorded to the sector are also driving demand for large integrated warehousing parks. This has attracted foreign investors who are entering the sector through investment platforms with the mandate of investing in industrial warehousing parks across the…

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India to have 859 million smartphones users by 2022

The number of smartphone users in the country is expected to double to 859 million by 2022 from 468 million users in 2017 growing at a compound annual growth rate (CAGR) of 12.9%, according to an ASSOCHAM–PwC joint study.  As of 2017, the number of smartphones in the country stood at 468 million and likely to reach 859 million smartphones users by 2022. The non-smartphone ownership in India will decrease from 701 million in 2017 to 504 million in 2022 at a CAGR of -6.4% as more and more people…

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Distribution hurdles a bigger challenge, says EIU-Cargill Report

The Economic Intelligence Unit (EIU) has come out with a white paper which underlines distribution challenges in farm to fork value chain contributing to global hunger and impacting pockets especially in Asia. The report was commissioned by global commodities giant Cargill. Following are the major takeaways of the report: On a global scale, 1 billion people around the world suffer from hunger. Global food statistics tell us there is enough food produced in a year to feed each person 2,700 calories and 75 grams of protein a day. However, as…

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$5 bn required annually for municipal solid waste management

An amount of US$5 billion every year would be required to implement public-private partnership (PPP) model for municipal solid waste management (MSWM) in Indian cities, noted a recent ASSOCHAM-EY joint study. The study titled, ‘The big “W” impact: effective urban waste management solutions in India,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with global advisory services firm Ernst & Young (EY) suggested the need for comprehensive and forward-looking policy which can accelerate a paradigm shift towards a modern and a healthy urban living. “We…

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LNG Import terminal capacity to double by 2022

According to a recently released report by ResearchAndMarkets.com, the domestic LNG Import Terminal Capacity space is slated to witness plenty of action in the coming years. To meet with its growing energy needs, the country has announced to double the share of natural gas in the energy mix to 15% by 2022 which will witness a hike in imports and huge capital investments inflow for construction of LNG terminals in coming years Historically, India’s natural gas consumption pattern has been on an upward trend since last 6-7 years. With limited…

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China slowdown makes India more promising: Agility Logistics Index

The recently released 10th annual Agility Emerging Markets Logistics Index has called India  “the emerging market with the greatest potential.” The reported slowdown in China’s  economy has made India the hot favourite among the global logistics industry executives. Meanwhile, China has retained its numero uno position in the annual 50 country ranking list with India breathing down its neck at number two position. The other prominent countries occupying top slots in the list include United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar, Turkey and Vietnam. Judging competitiveness on various…

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