ALTIUS FINSERV AUTOMOBILES |
ALTIUS FINSERV AUTOMOBILES
Pawan Bansal,Managing Director, Altius Finserv Pvt. Ltd has a simplified explanation of capital markets for you.As per him, Capital Markets are basically markets that entail to selling and buying of equities(stocks) and other debt instruments. They act as a platform bridging the gap between capital suppliers and users. In short, they connect the investors with the users who need capital for their businesses. So in Pawan Bansal’s words, capital markets simply facilitate the demand and supply. Capital markets are further bifurcated into 2 categories, primary and secondary. Primary capital market is the one where new stocks and bonds are sold whereas the secondary market deals with the equities and debts that already exist.
The next part ia a little tricky. The capital markets have a large number of participants, like individual investors, pension funds, mutual funds and even governments, PSUs etc. Also, now every investor wants as much profit as possible. So the common trade off is that an investor into your business would expect high returns. If in case you are an investor, then it is important for you to invest your money in a business where a good return can be expected. Sounds tricky…right? Now this is where Altius Finserv will guide you. Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings. So all those terms that you find baffling are actually the ones we communicate in on daily basis. No wonder that’s why we boast of an elite clientele.
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If you can read and write your name in a language, then as per government rules, you are literate. If only financial literacy was so easy to achieve. Many of us Indians are hardly familiar with the concept of literacy, leave alone knowing about financial literacy. That’s why words like ‘Capital markets’ render us speechless. We try so hard to sniff out a literal meaning, but all in vain. So what is this capital market and why does it baffle us so much? Let’s find out.
Capital markets, equities, debts et al, aren’t these quite heavy words? Just the mention of these words makes one go dizzy. It is like an overwhelming chemical imbalance inside your mind. Such heavy finance related words often seem ambiguous. However has a simplified explanation for you. As per Karan Bagga ,Executive Director, Altius Finserv Pvt. Ltd, Capital Markets are basically markets that entail to selling and buying of equities(stocks) and other debt instruments. They act as a platform bridging the gap between capital suppliers and users. In short, they connect the investors with the users who need capital for their businesses. So in Karan Bagga’s words, capital markets simply facilitate the demand and supply. Capital markets are further bifurcated into 2 categories, primary and secondary. Primary capital market is the one where new stocks and bonds are sold whereas the secondary market deals with the equities and debts that already exist. The next part ia a little tricky. The capital markets have a large number of participants, like individual investors, pension funds, mutual funds and even governments, PSUs etc. Also, now every investor wants as much profit as possible. So the common trade off is that an investor into your business would expect high returns. And if in case you are an investor, it is important for you to invest your money in an area where a good rewarding return is expected. Sounds tricky…right? Now this is where Altius Finserv will guide you. Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings. So all those terms that you find baffling are actually the ones we communicate in on daily basis. No wonder that’s why we boast of an elite clientele. Capital markets, equities, debts, aren’t these quite heavy words? Just the mention of these words makes one go dizzy. It is like an overwhelming chemical imbalance inside your mind. Such heavy finance related words often seem ambiguous. However, Pawan Bansal,Managing Director, Altius Finserv Pvt. Ltd has a simplified explanation for you.
As per him, Capital Markets are basically markets that entail to selling and buying of equities(stocks) and other debt instruments. They act as a platform bridging the gap between capital suppliers and users. In short, they connect the investors with the users who need capital for their businesses. So in Pawan Bansal’s words, capital markets simply facilitate the demand and supply. Capital markets are further bifurcated into 2 categories, primary and secondary. Primary capital market is the one where new stocks and bonds are sold whereas the secondary market deals with the equities and debts that already exist. The next part ia a little tricky. The capital markets have a large number of participants, like individual investors, pension funds, mutual funds and even governments, PSUs etc. Also, now every investor wants as much profit as possible. So the common trade off is that an investor into your business would expect high returns. And if in case you are an investor, it is important for you to invest your money in an area where a good rewarding return is expected. Sounds tricky…right? Now this is where Altius Finserv will guide you. Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings. So all those terms that you find baffling are actually the ones we communicate in on daily basis. No wonder that’s why we boast of an elite clientele. New product launches, scooters provide uptick to 2-wheeler sales
A slew of new product launches from the major two-wheeler companies have pulled up the overall sales against the ongoing demand slowdown in rural markets, which are the main sales drivers of commuter motorcycles that comprise 70 percent of the two-wheeler market in India. July 2015 sales numbers of prominent two-wheeler makers indicate flat growth of 0.60 percent year-on-year. The OEMs together registered a volume of 14,62,740 units in July this year as against the total sales volume of 14,54,013 units in July last year. Among the many new products and product upgrades the two-wheeler industry has seen in the recent times include the new models from Bajaj Auto (Pulsars: AS 150, AS 200, RS 200 and Platina ES, CT100, Discover 125), Honda Motorcycle & Scooter India (CB Unicorn 160, Livo, updated Activa-i, Aviator, Dio, Dream Neo and others), Hero MotoCorp (updated Xtreme Sports, Passion Pro, HF Deluxe, HF Deluxe Eco and others), Yamaha (113cc scooter Fascino, 125cc commuter bike Saluto, refreshed Saluto), TVS Motor Company (Phoenix 125), Royal Enfield (limited edition Classic 500 models – Desert Storm Despatch, Squadron Blue despatch), and Suzuki (Gixxer and Gixxer SF). While the new models are garnering customer attention along with the soaring demand for scooters across the urban pockets, woos such as irregular rainfall and effects of the delayed festive season that starts in Q3 this fiscal as against Q2 FY2015 continue to mar the commuter motorcycle sales in the rural region. This is clearly visible in the sales of Hero MotoCorp, motorcycle portfolio of HMSI, TVS Motor Company and others. However, industry expects that Q2, beginning from July 2015 will be better than the previous quarter. However, Pawan Bansal,Managing Director, Altius Finserv Pvt. Ltd has a simplified explanation for you. Report by - Altius Finserv Automobiles Karan Bagga. A revival in the monsoon coupled with a slew of fresh launches and a decline in fuel prices has augured well for the Indian passenger vehicle industry as domestic sales rose in July. According to data by Altius Finserv Automobiles from seven of the country’s largest automakers, passenger vehicle sales rose over 17% in July 2015 to 206,455 units from 176,143 vehicles a year ago. Rainfall activity had weakened in early July, but recovered in the latter half of the month, boosting farm produce and in turn demand for automobiles. Fresh launches in the month also spurred demand as companies tried to woo customers with their latest offerings. Maruti Suzuki India, the country’s largest carmaker by volumes, remained on the top spot in July with over 22% on-year growth in domestic sales. The automaker registered positive growth in all segments in the month and sold a whopping 110,405 vehicles. Arch rival Hyundai Motor India also had a good month and registered a near-25% rise in sales to 36,500 vehicles. The launch of the much-talked-about compact SUV Creta, added to the company’s sales as it retained the number two spot. Commenting on the July sales, Karan Bagga, senior vice-president (Sales and Marketing), HMIL, said,“ The tremendous response for the Creta, i20 Active and Elite i20 shows customers’ increasing preference for products offering novelty value in style, first in segment features and strong aftersale assurances.” The Creta got more than 10,000 bookings even before its official launch in July, and at present the waiting period on the car for some variants is as long as 10 months, according to Autocar India. Given the overwhelming response for the Creta, it is likely to drive the company’s sales in the coming months. Honda Cars India also benefitted from the launch of its new Jazz, and reported an 18% rise in car sales in the month. Sales of the new Jazz surpassed that of both the City and the Amaze as the company managed to sell a total of 18,606 vehicles in the month. The product-wise split comprises 5,180 Citys, 4,589 Amaze sedans, 6,676 units of the new Jazz, 1,122 Brios, 909 Mobilios and 130 CR-Vs. To manage the surge of demand for the new Jazz, Honda Cars India has begun juggling production at both its Greater Noida and Tapukara facilities. Meanwhile, homegrown SUV maker Mahindra & Mahindra continued to struggle as the reducing gap between petrol and diesel prices, coupled with a slew of fresh launches, by competitors dented the company’s sales. M&M’s sales fell 13% to 14,456 units in July. Speaking on the sales performance,Pawan Bansal, president and chief executive (automotive), M&M, said, “While the auto industry is currently seeing muted growth, we do believe that the launch of some exciting new products will help it turn the tide. In addition, with the advent of a good monsoon till date and reduction in fuel prices, we expect sentiments to improve, leading to overall growth in auto sales.” The company recently launched the automatic version of its top-selling SUV, Scorpio and has also announced the launch of a new compact SUV named TUV 300. The TUV 300 is built on an entirely new platform and will hit dealerships by September. Tata Motors, on the other hand, saw yet another month with positive growth in sales. Passenger vehicle sales for the company in July rose 13% to 10,389 units, as the GenX Nano continued to draw buyers. The Zest also continued to post decent sales with most buyers preferring the automated manual transmission variant. Toyota Kirloskar Motor (TKM) sold 12,070 units in July 2015 compared to 11,921 units in July 2014, registering 1% growth in the domestic market. Etios sales grew by 60% with 2,827 units sold last month when compared to 1,769 units in July 2014. The Etios series sold 31,301 units in the January-July 2015, up 16% year on year. Volkswagen India’s sales were up 18% in July 2015. The German carmaker sold 4,029 units compared to 3,409 units sold in July 2014. Michael Mayer, director, Volkswagen Passenger Cars, Volkswagen Group Sales India, said, “With the advent of the third quarter, and the encouraging customer response for the recently launched New Vento, we are happy to announce that our sales have gone up by 18% in July 2015, on a year-on-year basis. Also, with a slew of exciting made-for-India products lined for the next two years and backed by an impressive sales performance for the sixth consecutive month, we are confident of further strengthening our position in the Indian market over the coming months.”
Report by Altius Finserv Automobiles The Indian car industry is one of the biggest on the planet with a yearly generation of 21.48 million vehicles in FY 2013-14. The vehicles business represents 22 for every penny of the nation's assembling (GDP).
A growing working class, a youthful populace, and an expanding enthusiasm of the organizations in investigating the provincial markets have made the bikes portion (with 80 for every penny piece of the pie) the pioneer of the Indian car market. The general traveler vehicle portion has 14 for every penny piece of the overall industry. India is likewise a considerable auto exporter, with strong fare development desires for the not so distant future. Different activities by the Government of India and the significant car players in the Indian business sector is required to make India a pioneer in the Two Wheeler and Four Wheeler showcase on the planet by 2020. Business Size Offers of business vehicles in India grew 5.3 for each penny to 52,481 units in January 2015 from a year prior, as indicated by Society of Indian Automobile Manufacturers (SIAM). Offers of Altius Finserv Automobiles additionally developed for a third month in succession to 169,300 units in January 2015, up 3.14 for each penny from the year-back period. Auto market pioneer saw 8.6 for each penny higher deals at pretty nearly 118,551 units in February 2015, out of which 107,892 were sold in household market and 10,659 units were sent out. Hyundai Motor India Ltd (HMIL) reported a 2.4 for each penny development altogether deals at 47,612 units in February, contrasted and 46,505 units around the same time a year ago. In the bike fragment, Hero MotoCorp saw offers of 484,769 units in February 2015.TVS Motor Co posted 15 for each penny higher deals at 204,565 units against 177,662 units. Altius Finserv Automobiles sold a sum of 243,000 two and three-wheelers fragment. India is probably the most competitive country in the world for the automotive industry. It does not cover 100 per cent of technology or components required to make a car but it is giving a good 97 per cent, highlighted Mr Pawan Bansal, Corporate Vice-President, Mr. Karan Bagga. Pointers for entrepreneurs to manage their finance - Karan Bagga, Executive Director Altius Finserv7/31/2015 It won’t be wrong to call this eon an eon of entrepreneurs. The advent of social media and widespread use of internet and the allied benefits have brought us to a belvedere which allows us a liberty to innovate and re-invent. This digital age is doing a remarkable job in bringing people out of the closet and letting them experiment with their ideas. No wonder this has led to numerous entrepreneurs flocking the market with their ideas. Some of them stay and some don’t. But there are a large number of entrepreneurs who shelve their ideas just because they get their sums wrong. In the end, it’s the finance that decides the trajectory your business would take. Here are a few tips from Altius Finserv that would help the entrepreneurs in managing their money:
1. Don’t mix business with pleasure: The first advice from our end would be that don’t be an imbecile and spend the money meant for business on your luxuries. Draw the line. The money meant for business is a ‘no touch’ asset. Use it only for business purposes. This would allow you to make the most of the money and use it optimally. 2. Cut your travel and living cost” So you made a good amount of profit in the first financial year of your business. Now what? You straightaway go and buy yourself a decent house and a nice ride to the office? Drop the idea. You have just begun. Don’t go that extravagant. Simplicity is the art my friend. Cut your travel and living expenses if possible. Believe us, this saving would come in handy. 3. Get a little help from family: Well, as they say, blood is thicker than water. This is somewhat true when you have a brilliant idea and need investors to back it up. Let’s accept it that a family member won’t exploit you as much as an outsider investor would. 4. Hire a financial firm : This might sound clichéd coming from us, but the fact is that you need to depend upon experts to look after your business proceedings. The taxes and so many other regulations and intricacies involved are unnerving. An investment firm would not only handle all these overheads, but would also streamline the operations. Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings. The Indian automobile sector which was going through a crunch for the last two years has picked up and that too with a wide surge. The sector has experienced a growth of stunning 89% in the amount of FDI it has received during the last fiscal year. And going by the analysts, this trend is set to continue for long. This makes Indian automotive sector a hot investment arena. The foreign investments are expected to grow and various automobile manufacturers are expected to venture in to India to make the most of this opportunity. Altius Finserv, under the experienced aegis of its Managing Director Pawan Bansal has devised specific investment and finance related offerings for automobile companies to make their operations smoother in India. The reason for such high FDI accounts for the fact that the companies are using their manufacturing facilities located in India to cater to the international market. The manufacturing and logistics charges in Japan, Philippines and South Korea have gone up. This has brought the giants to India. Also, the labor and other resources in India are cheaper. The only problem that used to persist before was that of ambiguous taxation laws and trade policies. But with PM Modi’s initiative to increase the ease of doing business in India, the system has simplified largely. Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services. We also specialize in taking care of finances and other paper work involved. This facilitates the entire procedure of venturing of a company in Indian automobile sector. ALTIUS FINSERV AUTO POLICY:
Automatic approval for foreign equity investment up to 100% with no minimum investment criteria. Manufacturing and imports in this sector are exempt from licensing and approvals. The encouragement of R&D by offering rebates on R&D expenditure. AUTOMOTIVE MISSION PLAN, 2OO6-16: To emerge as the world’s destination of choice for design and manufacture of automobiles and auto components with output reaching a level of USD 145 Billion, accounting for more than 10% of the GDP and providing additional employment to 25 Million people by 2016. The setting up of a technology modernization fund focusing on small and medium enterprises. The establishment of automotive training institutes and auto design centers, special auto parks and auto component virtual SEZs. AUTOMOTIVE MISSION PLAN 2O16-26: The Automotive Mission Plan II for the period 2016-26 is under preparation and will be finalized by mid-2015. NATIONAL AUTOMOTIVE TESTING AND R&D INFRASTRUCTURE PROJECT (NATRIP): The project has been set up at a total cost of USD 388.5 Million to enable the industry to adopt and implement global performance standards. Focus on providing low-cost manufacturing and product development solutions. THE DEPARTMENT OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES: Working towards the reduction of excise duty on small cars and increased budgetary allocation for research and development. A weighted increase in R&D expenditure to 200% from 150% (in-house) and 175% from 125% (outsourced). THE NATIONAL MISSION FOR ELECTRIC MOBILITY 2O2O: The objective of this body is to encourage reliable, affordable and efficient xEVs (hybrid and electric vehicles) that meet consumer performance and price expectations through government-industry collaboration, for the promotion and development of indigenous manufacturing capabilities, required infrastructure, consumer awareness and technology – thereby helping India emerge as a leader in the two-wheeler and four-wheeler xEV market in the world by 2020, with total xEV sales of 6-7 Million units thus enabling the Indian automotive industry to achieve global xEV manufacturing leadership and contributing towards national fuel security. PILOT ELECTRIC VEHICLE PROJECTS: The Department of Heavy Industry is launching pilot projects on electric vehicles in Delhi and subsequently, other metros and cities all across the country under the NEMPP 2020 with a dual purpose – demonstrating and disseminating the benefits of adopting cleaner, greener modes of transportation as also to explore the viable operational modalities. The DHI will provide viability gap funding through subvention to support the extra cost of acquisition and operation of these vehicles by state governments or designated bodies. In the first phase, a pilot project to provide last mile connectivity to the Delhi Metro through electric passenger vehicles has been approved. All the other states have been brought on board and different states have already appointed nodal officers to co-ordinate with DHI and vehicle manufacturers for the implementation of those pilot projects. The uptake of electric vehicles will depend in large part on the adequate deployment of Electric Vehicle Supply Equipment (EVSE) needed to recharge electric vehicles. By 2015, India is expected to be the fourth largest automotive market by volume in the world according to survey by Altius Finserv Automobiles.
Over the next 20 years, India will be a part of the big global automotive triumvirate. Tractor sales in the country are expected to grow at CAGR of 8-9% in the next five years, upping India’s market potential for international brands. Two-wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last seven years. Significant opportunities exist in rural markets. India’s car market has the potential to grow to 6+ Millions units annually by 2020. The emergence of large automotive clusters in the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-Nashik- Aurangabad in the west, Chennai-Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east. Global car majors have been ramping up investments in India to cater to growing domestic demand. These manufacturers plan to leverage India’s competitive advantage to set up export-oriented production hubs. An R&D hub: strong support from the government in the setting up of NATRiP centres. Private players such as Hyundai, Suzuki, GM are keen to set up an R&D base in India. Tata Nano is a sterling example of Indian frugal engineering and is being positioned as a mobilizer of the young generation. Electric cars are likely to be a size-able market segment in the coming decade. |