Eco 10 Industries of India

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University School of Management and

Entrepreneurship, DTU
Comparison of Cost Index of ten Indian

Industries with Macroeconomic Variables
By
Tanveer Hurra 2k19/BMBA/19

Srish Saini 2k19/BMBA/17
Subject: Managerial Economics

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Contents
S.No. Topic Page No.
1 Introduction 3
2 Milk and Dairy Industry 5
3 Tea Industry 8
4 Leather Industry 10
5 Mineral Oil/Petroleum Industry 13
6 Limestone and Cement Industry 16
7 Textile Industry 19
8 Electricity and Power Industry 25
9 Rubber Industry 32
10 Iron Ore and Steel Industry 37
11 Biscuit Industry 43
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Introduction
The Indian economy has survived the global downturn very well. It has posted one of the
highest rates of economic growth in the world despite other major industrial giants lagging
behind. At the end of 2009, the Indian economy was growing at 7% a year. The strongest
growth was coming from the manufacturing and construction sector and the weakest section
was agriculture. The strong rate of economic growth boosts prospects for the Indian Rupee
in the years to come.
The drawback of such a rapid economic expansion is a rise in inflation. The economy of India
is the eleventh largest economy in the world by nominal GDP. Post-independence the country
went into a fast-paced economic growth which was further fuelled by the free market
principles started in the 1990's which welcomed foreign investments. It has been predicted
by leading Economists around the world that by 2020, India will be among the leading
economies of the world.
Four key industrial economic sectors are identified in India. The primary sector, largely extract
raw material and they are mining and farming industries. In the secondary sector, refining,
construction, and manufacturing are included. The tertiary sector deals with services and
distribution of manufactured goods. India's service industry accounts for 57.2% of the
country's GDP while the industrial and agricultural sector contribute 28% and 14.6%
respectively. Agriculture is the predominant occupation in India, accounting for about 52% of
direct and indirect employment. The service sector makes up a further 34%, and industrial
sector around 14%. The labour force totals around half a billion workers. Industry accounts
for 28% of the GDP and employ 14% of the total workforce.
Economic reforms brought foreign competition in the industrial scenario, led to privatization
of certain public sector industries, opened up sectors hitherto reserved for the public sector
and led to an expansion in the production of fast-moving consumer goods. Textile industry is
the second largest source for employment after agriculture and accounts for 26% of
manufacturing output. Information technology is one among the fastest growing sector
contributing to one third of the total output of services. The growth in the IT sector is
attributed to increased specialization, and an availability of a large pool of low cost, highly
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skilled, educated and fluent English-speaking workers around the country. Cities like
Bangalore, Hyderabad and Pune have established themselves as major IT hubs in the country.
The Indian environment is suffering a great deal due to this industrialization. Pollution,
deforestation, and the destruction of flora and fauna continue to skyrocket. But
industrialization did have good outcomes. Material well-being and improved health care
came to our doorsteps. New goods, new choices and new comforts came about. It also led
the way for other ideas such as women's rights, human rights, right to information and child
labour laws, etc. Simply stated, industrialization did have its good aspects as well as its bad
on India. But indeed, the Industrial Revolution was a huge achievement.
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Milk and Diary Industry

Size of the More than 10 million dairy farmers belong to 96,000 local dairy
INDUSTRY cooperatives, who sell their product to one of 170 milk producers'
cooperative unions who in turn are supported by 15 state cooperative
Geographical Delhi, Punjab, Mumbai, Gujarat, Surat, Lucknow, Bihar, Hyderabad
distribution
Output per Growth 5% per annum
annum
Percentage in The industry contributes about Rs 1,15,970 crores (US $ 25,771 million)
world market to the national economy.
India is the highest milk producer in the entire globe. India is well known as the 'Oyster' of the
global dairy industry, with opportunities galore for the entrepreneurs globally. It might be
dream for any nation in the world to capitalize on the largest and fastest growing milk and
milk products' market. The dairy industry in India has been witnessing rapid growth with
liberalization. As the economy provides good opportunities for MNCs and foreign investors
to release the full potential of this industry. The main objective of the Indian Dairy Industry is
to manage the national resources in a manner to enhance milk production and upgrade milk
processing using innovative technologies. The crossbred technology in the Indian Dairy
Industry has further augmented with the viability of the dairy units by increasing the milk
production per animal. Then subsequently milk production has also increased at an
exponential rate while the benefits of an increase in milk production also reached the
consumers from a relatively lower increase in the price of milk. The favourable price
environment for milk producers for the Dairy Industry in India however appeared to have
weakened during the 90's, a decline in the real price of milk being noticed after the year 1992.
And then slowly regained it is glory after 1992 to till now.
Significant Industry: Amul

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Amul's success had huge impact in the creation of same structure of milk producers in other
districts of Gujarat initially. Amul's experience was driving force in project planning and
execution. The 'Anand Pattern' was followed in Kaira district, Mehsana, Sabarkantha,
Banaskantha, Baroda and Surat districts. As even before the setting up of the Dairy Board of
India, farmers and their leaders carried out various tests of the hypotheses that explained
Amul's success. All through these districts, milk producers and their leaders experienced
significant commonalties and found easy, effortless ways to adapt Amul's game plan to their
respective areas. This eventually led to the Creation of the National Dairy Development Board
with the clear mandate of replicating the 'Anand pattern' in other parts of the country. Initially
this pattern was followed for the dairy Industry but at later stage oilseeds, fruit and
vegetables, salt, and tree sectors also benefited from its success.
Latest Developments:
Indian Dairy Industry is the largest milk producer all over the world, around 100 million MT.
Indian Dairy Industries value of output amounted to Rs. 1179 billion in 2004-05 which
approximately equals combined output of paddy and wheat. With 1/5th of the world's bovine
population. In India the Milk animals constitutes 45% indigenous cattle, 55 % buffaloes, and
10% cross bred cows.
Intensive Dairy Development Programmed (IDDP): The Schemes, modified under this
programme are on the basis of the recommendation of the evaluation studies which were
launched during Eighth Plan period and is being continued throughout the Eleventh Plan with
an outlay of Rs. 32.49 core for 2009-10.
Strengthening Infrastructure for Quality and Clean Milk Production (CMP): this is a centrally
sponsored scheme which was launched in October 2003, which had the main objective of
improving the quality of raw milk produced at every village level in the India.
Dairy Venture Capital Fund- This was introduced in the Tenth Fiver Year Plan to bring about
structural changes in unorganized sector, which would measure like milk processing at village
level, marketing of pasteurized milk in a cost-effective manner, quality or the up gradation of
traditional technology to handle commercial scale using modern equipment and
management skills.
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Cost Index and GDP: The below graph shows the variation of Wholesale Price Index (WPI) of
Milk with GDP. The price of milk can be seen taking a positive trend with GDP post 1990. The
price index saw a sharp decline in 2009, the effects of which can be attribute to the recession.
Although as India overcome the effects of global recession, the price index of milk can be seen
rising again as the demand for diary products rise. The price of milk experience an another
dip post 2012, although this decline cannot be attribute to the variations in demand but the
improved schemes & technologies in diary sector which made the milk readily available for
consumers.
India ranks first in the world in milk production, which has gone up from 53.9 million tonnes
in 1990- 1991 to 127.9 million tonnes in 2012-13. The per capita availability of milk has also
increased from 176 grams per day in 1990's to 290 grams per day in 2012-13. This is
comparable with the world per capita availability of milk at 289.31 grams per day for 2012.
This represents sustained growth in the availability of milk and milk products for the growing
population of the country, apart from being an important secondary source of income for
rural families. The Intensive Dairy Development Programme, strengthening infrastructure for
quality and clean milk production, Assistance to Cooperatives, and Dairy Entrepreneurship
Development Scheme are some of the Indian Government's important schemes/programmes
for meeting the growing demand for milk. The National Project for Cattle and Buffalo Breeding
has been under implementation since 2000. A new scheme called the National Dairy Plan
Phase I has also been initiated in 2012-13.
GDP and Milk Plot

30
25
GDP in 100 billion, Milk WPI x 10
20
15
GDP
10 Milk
0
1990 1995 2000 2005 2010 2015 2020
Year
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Tea Processed
Size of the Today Indian Tea Industry is having 1692 registered tea manufacturers,
INDUSTRY 2200 registered tea exporters 5548 number of registered tea buyers
and nine tea auction centres.
Geographical Assam, West Bengal, Tamilnadu , Kerala Karnataka, Tripura, Himachal
distribution Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland,
Meghalaya, Mizoram and Bihar
Output per India is an important tea exporter, accounting for around 12-13% of
annum world tea exports.
Percentage in Indian Tea Industry is one of the largest in the world with over 13,000
world market gardens, and a total workforce of over two million people
Indian Tea Industry is about 172 years old. The industry occupies an important place and plays
a very useful part in the national economy. In 1823 Robert Bruce invented tea plants growing
wild in upper Brahmaputra Valley. Tea plantations are mainly located in rural hills and
backward areas of Northern Eastern and Southern states. The major tea growing areas in India
are concentrated in Assam, West Bengal, Tamilnadu and Kerala. The other areas growing tea
to the extent is Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh,
Manipur, Sikkim, Nagaland, Meghalaya, Mizoram and Bihar. In India Tea is indigenous and is
an area where the country can take a lot of pride. India has emerged as world leader in all
aspects of tea production, consumption and export mainly because it accounts for 31% of
global production. For last 150 years perhaps the Tea Industry is the only one where India has
retained its leadership over. The range of tea offered by India - from the original Orthodox to
CTC and Green Tea, from the aroma and flavour of Darjeeling Tea to the strong Assam and
Nilgiri Tea- remains unparalleled in the world.
Significant Industry: Hindustan Unilever
Latest Developments: Coonoor in Tamil Nadu is working on a strategic plan for an ambitious
growth of its tea industry over the next seven years. The government has directed to submit
a strategic plan for the next phase of growth in the industry during the remaining 11th plan
(2007-12) and the 12th plan (20012-17). In 2009 the global trends during the recession-hit
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period, the export performance of Indian teas was a mixed bag. Though in 2008 quantity
declined by 14 million kg to 192 million kg from 203 million kg, the value was higher by Rs.224
crore due to better realisation per unit by Rs.19 per kg. Total value of exports was Rs.2, 617
crores as against Rs.2, 393 crores in 2008. The Tea Industry is an agro based labour intensive
industry. It provides direct employment to over 1 million persons. Through its forward and
backward linkages another 10 million persons derive their livelihood from tea. In Northeast
India alone, the tea industry employs around 900,000 persons on permanent rolls. The Tea
Industry is one of the largest employers of women amongst organised industries in India.
Women constitute nearly 51% of the total workforce. There is no gender bias with respect to
employment benefits.
GDP and Cost Index:

The cost index shows a positive relationship with GDP up to 2012. Post 2012 the Whole Sale
Price index first drops then stays almost constant. The reason for this is the decline in exports
of the Tea to Iran because of US lead sanctions against the country. The export quantity had
fallen to 210 million kilograms against the expectation of 230 million kilograms
GDP and Tea Proccessed

30
GDP in 100 billion, Tea Proccessed WPI x 10
25
GDP
20
Tea Proccessed
15
10
0
1990 1995 2000 2005 2010 2015 2020
Year
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Leather and Leather Products

Size of the Indian leather industry has capacity to produce l776 million pairs; 112
INDUSTRY million pairs of Shoe Uppers; Non-leather footwear - 960 million pairs
Geographical Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul ;
distribution West Bengal - Kolkata ; Uttar Pradesh - Kanpur, Agra & Noida ;
Maharashtra - Mumbai ; Punjab - Jallandhar ; Karnataka - Bangalore ;
Andhra Pradesh - Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula
and Karnal; Delhi
Output per Has an annual turnover of approximately US$ 5,000,000
annum
Percentage in Indian Leather Industry currently is one among the top 8 industries for
world market export revenue generation in India, holding 10% of the global raw
material, and 2% of the global trade
Over the years the Indian Leather Industry has undergone drastic change from being a mere
exporter of raw materials in the early 60's and 70's to an exporter of finished, value-added
leather products. The main reason behind this good transformation is the several policy
initiatives taken by the government of India. Indian proactive government initiatives have
yielded quick and improved results. Today the Indian leather industry has attained a
prominent place in the Indian export and has made the industry one of the top 7 industries
that earns foreign exchange for the country. Since 1991 as India adopted the globalization
and liberalized economic policies, the leather industry has flourished consistently in several
ways and has contributed heavily to the Indian exchequer. Investing in Indian Leather Industry
is advantageous because the industry is poised to grow further and achieve a major share in
the global trading market. The post liberalization era has opened up a great plethora of
opportunities for the Indian Leather Industry. As the global players looking for new sourcing
options while in addition to China, India stands to gain a bigger share of the global market.
Leading brands from the US and Europe have plans to source leather and leather products
from India. Indian Leather Industry currently is one among the top 8 industries for export
revenue generation in India, holding 10% of the global raw material, and 2% of the global
trade. India has become biggest livestock producer in the world, with the capacity of 1.8
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billion square feet of leather production annually. Global Footwear of 13% production
comprising of 16 billion pairs are made in India. India today produces 2065 million pairs of
various categories of footwear. It exports 115 million pairs, thus having 95% of its production
to meet its own domestic demand. Indian leather industry has the credit of being one of the
oldest manufacturing industries catering to the global market from the 19th century.
On June 30, 2005, the Cabinet Committee on Economic Affairs (CCEA) decided to implement
a Rs 2.9 billion scheme for the integrated development of the Indian Leather Industry. Under
the scheme, existing tanneries will be modernized and new units will be set up for footwear,
components and leather products. This scheme is expected to result in gains in terms of
productivity, right-sizing of capacity, cost-cutting, and design-development. The leather and
leather products industry is one of the oldest manufacturing industries in India. The exports
of leather and leather products gained momentum during the past two decades. There has
been a phenomenal growth in exports from Rs.320 million in the year 1965-66 to Rs.69558
million in 1996-97. Today Indian Leather Industry has attained well merited recognition in
international markets besides occupying a prominent place among the top seven foreign
exchange earners of the country.
Significant Industry: Liberty

Latest Developments: The Indian federal government has earmarked a Rs 4.5 billion grant to
be made available to the industry to boost the country's leather industry over a span of five
years, the fund availability is conditional upon the sector's attracting an annual investment of
Rs 2.2 trillion. In 2002, the investments in the Indian Leather Industry stood at Rs 410 million.
Footwear and their components account for about 25 %of India's total leather products
exports. These two markets also offer Indian leather industry vast scope for exports of saddler
and harness. India is the world's second largest producer of footwear; its production
estimated over 700 million pairs per annum. At about US $ 300 million per year, footwear
accounts for 18 percent share of total exports of leather exports. Products exported from
India include dresses, shoes, casuals, moccasins, sports shoes, sandals, ballerinas, and
booties. Major production centres are at Chennai (Madras), Delhi, Agra, Kanpur, Mumbai
(Bombay), Calcutta and Jalandhar. The government of India for it 200-2009 Foreign Trade
Policy has identified the leather sector as a focus sector in view of its immense potential for
export growth and generation of employment generation prospects. India is one of the best
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destinations in the world for investing in the leather industry because India is endowed with
abundant raw materials required for the industry to grow. India has a huge population of
cattle. India accounts for 21% of the world's cattle and buffalo and 11% of the world's goat
and sheep population. The Government is also making efforts to implement various Special
Focus Initiatives under the Foreign Trade Policy for the growth of leather sector. Leather
industry is aimed to augment the production, thereby to enhance export up to US$ 7.03 billion
by 2013-14 which shall create additional employment opportunities for overall one million
people.
GDP and Cost Index: The cost of leather and leather products increased due to the rise in GDP
post 1990. The trend however suffers drop post 2009 due to global recession and further drop
in 2012 due to slowdown which affected the export growth of the leather products
GDP and Leather

30
GDP in 100 billion, Leather WPI x 10
25
GDP
20
Leather
15
10
0
1990 1995 2000 2005 2010 2015 2020
Year
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Mineral Oil Industry

Size of the India today has total reserves of 775 million metric tonnes (MMT) of
INDUSTRY crude oil and 1074 billion cubic metres
Geographical Assam, Rajasthan, Mumbai, Vishakhapatnam, Chennai, Nagapatinam,
distribution Kochi, Bongaigaon, Numaligarh, Mangalore, Tatipaka
Output per India produced roughly 880 thousand barrels per day (bbl/d) of total
annum oil in 2009 from over 3,600 operating oil wells
Percentage in India has approximately 5.6 billion barrels of proven oil reserves as of
world market January 2010, the second-largest amount in the Asia-Pacific region
after China.
After the Indian Independence Indian Oil Industry was a very small one in size and Oil was
produced mainly from Assam and the total amount of Oil production was not more than
250,000 tonnes per year. Oil Industry in India during the year 2004-2005 fulfilled most of
demand through importing oil from multiple oil producing countries. The Oil Industry in India
itself produced nearly 35 million metric tons of Oil from the year 2001 to 2005. The import
that is done by the Oil Industry in India comes mostly from the Middle East Asia.
The Oil that is produced by the Oil Industry in India provides more than 35% of the energy
that is primarily consumed by the people of India. This amount is expected to grow further
with both economic and overall growth in terms of production as well as percentage. The
demand for oil is predicted to go higher and higher with every passing decade and is expected
to reach an amount of nearly 250 million metric ton by the year 2024.
Most of India's crude oil reserves in India are located offshore, in the west and onshore in the
northeast. Substantial reserves, however, are located offshore in the Bay of Bengal and in
Rajasthan state. India's largest oil field is the offshore Mumbai High field, located north-west
of Mumbai and operated by ONGC. Another effort is India's large oil fields are the Krishna
Godavari basin which is located in the Bay of Bengal. NELP framework is the primary
mechanism through which the Indian government has promoted new E&P projects. The latest
round of auctions, NELP VIII, was launched in April 2009 and attracted nearly $1.1 billion in
investment.
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According to Oil & Gas Journal (OGJ), India has approximately 5.6 billion barrels of proven oil
reserves as of January 2010, the second largest amount in the Asia-Pacific region after China.
India's crude oil reserves tend to be light and sweet, with specific gravity varying from 38°
API in the offshore Mumbai High field to 32° API at other onshore basins. India produced
roughly 880 thousand barrels per day (bbl/d) of total oil in 2009 from over 3,600 operating oil
wells. Approximately there are 680 thousand bbl/d was crude oil, the remainder. was other
liquids and refinery gain. In 2009, India consumed nearly 3 million bbl/d, making it the fourth
largest consumer of oil in the world. EIA expects and predicts approximately 100 thousand
bbl/d annual consumption growth through 2011.
Significant Industries: Indian Oil Corporation, ONGC, Bharat Petroleum, Reliance Petroleum
Limited, Essar Oil Limited, Gas Authority of India, Hindustan Petroleum Corporation
To support India's energy security the country is constructing a strategic petroleum reserve
(SPR). The first storage facility at Visakhapatnam will hold approximately 9.8 million bbls of
crude (1.33 million tons) and is scheduled for completion by the end of 2011. Then the second
facility at Mangalore would have a capacity of nearly 11 million bbls (1.5 million tons) and is
scheduled for completion by the end of 2012. The third facility of Padur is also scheduled to
be completed by the end of 2012, which will have capacity of nearly 18.3 million bbls (2.5
million tons). The selection of coastal storage facilities are accordingly so that the reserves
could be easily transported to refineries during a supply disruption. The SPR project is
managed by the Indian Strategic Petroleum Reserves Limited (ISPRL), which is part of Oil
Industry Development Board (OIDB), a state-controlled organization. India does not have any
strategic crude oil stocks at this time. According to a report released by McKinsey a global
consultancy firm at the VI Asia Gas Partnership Summit, India's natural gas demand is
expected to nearly double to 320 million metric standard cubic metres per day (mmscmd) by
2015 and the rest from imported liquefied natural gas (LNG)-is likely to rise to at least a
minimum of 230 mmscmd and a maximum of 320 mmscmd by 2015. The government is
planning for its first ever offer of shale gas exploration in 2012. Shale gas (gas locked in
sedimentary rocks) is an emerging area. It has become an important source of energy in a few
countries that have been able to commercially exploit this resource.
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Cost Index and GDP: The cost of mineral oils or petroleum products saw a steep increase over
years. The 2009 recession affected oil prices too and is evident form the graph below. The
post 2014 drop in oil prices can be attribute to the discovery of shale oil by America.
GDP and Mineral Oil

50
GDP in 100 billion, Mineral Oil WPI x 10
45
40
35
30
25
GDP
20
Mineral Oil
15
10
5
0
1990 1995 2000 2005 2010 2015 2020
Year
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Limestone/ Cement Industry

Size of the The total capacity is spread over 129 plants, which is owned by 54
INDUSTRY major companies across the country.
Geographical Mumbai, Ahmedabad, Hyderabad, Chennai, Pune, New Delhi,
distribution Bangalore, Kolkata, Delhi, Rajkot, Coimbatore, Vadodara, Ghaziabad,
Nagpur, Faridabad, Jaipur, Surat, Aurangabad, Indore, Gurgaon,
Jodhpur, Thane, Noida, Secunderabad, Thiruchirapalli, Navi Mumbai,
Ludhiana, Guwahati, Nashik , Patna , Bhilai, Raipur , Howrah, Siliguri,
Kota, Bhubaneswar
Output per 217.80 million tonnes
annum
Percentage in 8% of share
world market
Indian Cement Industry is the second largest cement producer in the world after China with
a total capacity of 151.2 Million Tonnes (MT). Government of India has been giving immense
boost to various infrastructure projects, housing facilities and road networks, the cement
industry in India is currently growing at an enviable pace. In the coming years more growth in
the Indian cement industry is expected to come. It is predicted that the production in India
would rise to 236.16 MT in FY11 & expected to rise to 262.61 MT in FY12 in the Cement
Industry. The Indian cement industry is dominated by 20 companies, which account for almost
70% of the total cement production in India. The companies all over India have produced 11
MT cement during April- September 2009. The Indian Cement industry plays a major role in
the growth of the nation for that case in any country. Industry Cement Industry was under
full control and supervision of the government. However, it got great relief at a large extent
after the economic reform which made its growth easier. Still government interference,
especially in the pricing, is evident in India. In spite of it being second largest cement producer
in the world, Indian Cement industry falls in the list of lowest per capita consumption of
cement with 125 kg. The reason for this is poor rural people who mostly live in mud huts and
cannot afford to have the commodity. The demand and supply of cement in India has grown
up over the years. In a fast-developing economy as India there is always large possibility of
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expansion of cement industry. The Indian cement industry is one of the vital industries for
economic development. The total utilization of cement in a year is used as an indicator of
economic growth. Cement contributes as a necessary constituent of infrastructure
development and a key raw material for the construction industry, especially in the
government's infrastructure development plans in the context of the nation's socio-economic
development.
The Indian cement industry is expected to grow steadily in 2010-2011 and increase capacity
by another 50 million tons in spite of the recession and decrease in demand from the housing
sector. The industry experts project the sector to grow by 9 to 10% for the current financial
year provided India's GDP grows at 7%. India ranks second in cement production after China.
The major companies have made investments to increase the production capacity in the past
few months, heralding a positive outlook for the industry. The housing sector accounts for
50% of the demand for cement and this trend is expected to continue in the near future. The
Indian Cement Industry with Modernization and technology up-gradation has become a
continuous process for industry. At present international standards and benchmarks in the
quality of cement and building materials produced are met in India and is able to compete
international markets. Substantial technological improvements have been bought in the
industry for which we can legitimately be proud of its state-of-the-art technology and
processes incorporated in most of its cement plants. This particular technology up gradation
is resulting in increased capacity, reduction in cost of production of cement. In 2003, a Cris
Infac study mentioned that the cement industry could had the capacity addition of
approximately 50 MT by 2008, of which Greenfield expansions would contribute 40 MT while
debottlenecking of the plants and increase in blending ratios would add another 10 MT, taking
the total capacity of the cement industry to around 180 MT.
Significant Industry: Gujarat Ambuja Cement Limited, Ultratech Cement, JK Cements.

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Cost Index and GDP: The demand for cement depends mainly on development. The cost index
of cement didn’t see any significant variation until 2010 due to poor infrastructure
development activity. The infrastructure sector suffers further hit due to global recession of
2009 which directly impacted cement prices, as can be seen from the graph below. The cost
index only improves post 2012 and saw a positive trend with GDP.
GDP and Limestone

30
GDP in 100 billion, Limestone WPI x 10
25
20
15
GDP
10 Limestone
0
1990 1995 2000 2005 2010 2015 2020
Year
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TEXTILE INDUSTRY
Textile and GDP

35
30
GDP in Billions and Testiles' WPI

25
20
GDP
Textile
15
Expon. (GDP)
Expon. (Textile) 10
0
1990 1995 2000 2005 2010 2015 2020
Years 1994-2018
Interpretation of the Graph
As we can see the trendline of GDP has grown exponentially, whereas trendline of Textile
Industry is rather very constant over the course of 24 years. The point where these trendlines
intersect we can see that it’s the year of 2008 when GDP has seen a dip as compared to 2007.
On the other hand, WPI (Wholesale Price Index) of Textile Industry remained constant from
2007 to 2008. Since the recession was for 2 years 2007-2009, in the graph we can see that
GDP growth and WPI of Textile Industry grew at the same rate from 2008-2009, seeing the
fact that both had seen a downfall in the trends previous years.
Brief introduction
Indian Textile Industry has earned a unique place in our country. It is among one of the
industries which were earliest to come into existence in India. It accounted for 14% of the
total Industrial production, contributes to nearly 30% of the total exports and is the second
largest employment generator after agriculture. This industry provides one of the most basic
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needs of people and holds importance; maintaining sustained growth for improving quality
of life. It has an image of self-reliant industry, from the production of raw materials to the
delivery of finished products, with substantial value-addition at each stage of processing
which forms a major contribution to the country's economy. India textile
industry is one of the leading in the world. Currently the Indian Textile Industry is estimated
to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year
2012. The current Indian domestic market of textile is expected to be increased to US$ 60
billion by 2012 from the current US$ 34.6 billion.
Total contribution to the economy/ sales
Indian textile industry is one of largest Industries in Indian Economy. In 2000-01, the textile
and garment industries accounted for about 4% of GDP, 14% of industrial output, 18% of
industrial employment and 27% of export earnings. Indian textile industry is significant in
global context also, ranking second to China in the production of both cotton yarn and fabric
and fifth in the production of synthetic fibres and yarns. The Indian textile industry constitutes
14% to industrial production, 4% to the country's gross domestic product (GDP) and 17% to
the country's export earnings, according to the Annual Report 2009-10 of the Ministry of
Textiles.
Domestic and Export Share

According to the Indian Ministry of Textiles, the cumulative production of cloth during
April'09-March'10 has increased by 8.3 % when compared to the same period of the previous
year. The total Indian textile exports have increased to US$ 18.6 billion during April'09-
January'10, from US$ 17.7 billion during the same period of the previous year, registering an
increase of 4.95 % in rupee terms. Gradually the share of textile exports in total exports has
increased to 12.36% during April'09-January'10, as per the Ministry of Textiles. During April-
March 2009-10 textiles has registered a growth of 5.5% according to the Index of Industrial
Production the data released by the Central Statistical Organization (CSO). Cotton, white
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wool, silk and man-made fibre textiles have registered a growth of 8.2 % while textile products
including apparel have earned a growth of 8.5%.
Top leading Companies

Some of the reputed names in the Textile companies in India are: Raymonds, Arvind Mills,
Reliance Textiles, Vardhaman Spinning, Welspun India, Morarjee Mills, Century Textiles, Ginni
Filaments Ltd, Mafatlal Textiles, S. Kumar Synfabs, Bombay Dyeing Ltd, BSL Ltd, Banswara
Syntex, Grasim Industries, Oswal Knit India, Fabindia, Laksmi Mills, National Rayon Corp,
Mysore Silk Factory and many more.
Latest developments
Indian Textile Industry covers 61 % of the international textile market and 22 % of the global
market Indian Textile Industry is known to be the 3rd largest manufacturer of cotton across
the globe. This industry of India claims to be the 2nd largest manufacturer as well as provider
of cotton yarn and textiles in the world India holds around 25 % share in the cotton yarn
industry across the globe India Textile Industry contributes to around 12 %of the world's
production of cotton yarn and textiles.
Investments in the Textile Industry

Around US$ 5.35 billion of foreign investment is expected to be made in India in the textile
sector over the next five years. The textiles industry has attracted foreign direct investment
(FDI) worth US$ 817.26 million between April 2000 and March 2010, according to data
released by the Department of Industrial Policy and Promotion.
Raymond’s contribution in Textile Industry and Economic Growth
GLOBAL TEXTILE AND APPAREL INDUSTRY

The global textile and apparel industry are continuously evolving. Over the years, it has
witnessed multiple shifts in consumption and production patterns, including shifts in
22 | P a g e
geographical manufacturing hubs, as the industry is driven by the availability of cheap

labour.
The textile and apparel trade are predicted to grow at a CAGR of 3.7% during the period
2018-28. During this period, the increase in apparel trade is expected to be at a CAGR of
4.5% and textiles at a CAGR of 2.5%.
Even though apparel industry is dominated by developed markets of EU and the US, the
emerging markets led by countries such as India, China, Russia and Brazil are becoming
consumption markets. Simultaneously, India and China have strong textile manufacturing
base, and thus are emerging as both sourcing and consuming nations.
Currently, China holds the largest share in textile and apparel global trade. It has vertically
integrated supply chain from production of fibre to weaving of fabric and garmenting. The
sector also has the capability to manufacture all categories of products and a conducive
ecosystem to provide complete service offering to brands and retailers. However, the
increasing labour and energy costs have mitigated the international competitive advantage
of China to some extent. The global apparel manufacturers are finding Bangladesh,
Vietnam and India as competitive markets over China.
INDIAN TEXTILE INDUSTRY

India’s textiles industry is among the oldest industries in the country dating back several
centuries. It is one of the largest contributors to the economy accounting for ~4% of the
GDP. It is the second largest contributor towards employment generation, after
agriculture, contributing 10% to the country’s manufacturing, owing to its labour-intensive
nature. The industry is characterised by its robust vertical integration in almost all the sub-
sectors.
The textiles and apparel industry constitute ~14% of the total exports of the country. India
is the second largest producer and exporter of textiles after China and fourth largest
producer and exporter of apparel after China, Bangladesh and Vietnam.
The mitigation of the repercussions of currency fluctuation remains a challenge for the
industry. Exports have been a core feature of India’s textile sector. Indian textiles and
apparel exports were estimated at $39 billion and is expected to grow at a CAGR of 7.5%
over the next decade to reach $76 billion by 2028. The fundamental strength of India’s
textile industry is its strong production base with a wide range of fibres and yarns that
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include natural fibres like cotton, jute, silk and wool; and synthetic and manmade fibres
such as polyester, viscose, nylon and acrylic.
As a flagship business of Raymond Group, its Branded Textile segment has a dominant
position in the Indian market as a B2C branded player for suiting and shirting fabrics. The
vertical has grown over the years on the back of strong channel partner relationships, some
lasting more than 50 years, as well as wide distribution reach.
With a strong distribution network that addresses robust fabric demand across Tier 1 cities
to Tier 6 towns, the business has consistently launched new products and services keeping
up with the customers’ needs and preferences. In FY 2018-19, it witnessed strong growth
driven by network expansion supported by growth in institutional and exports category.
INDIAN APPAREL INDUSTRY

The Indian apparel industry was worth an estimated $54 billion in 2018 and projected to
reach ~$118 billion in 2028 growing at CAGR of ~8% over 2018-28 period.
The country’s apparel market is majorly driven by menswear, which holds major share in
the apparel business, accounting for 43% of the total market. Women’s wear contributes
almost 36%, while kids wear constitutes 21% of the apparel market. The sector is one of
the fastest growing markets globally, supported by a robust demand growth.
The major challenges in the Indian apparel industry are increasing competition, sustained
discounting that is expected to moderate margins and product obsolescence due to ever-
evolving fashion trends.
Raymond is one of the leading branded players in the menswear apparel industry in India
with a portfolio of four power brands, namely Raymond Ready to Wear, Park Avenue, Color
Plus and Parx. Through these brands, Raymond caters to the entire spectrum of men’s
wardrobe across various price points and occasions.
During the year, the Company has focused on rapid expansion led by Multi Brand Outlets
(MBOs), Large Format Stores (LFS) and own retail store network of TRS and EBOs. There
was continued momentum on enhancing the core proposition as a wardrobe solutions
provider and the Company strengthened the apparel portfolio by entering new categories
of Khadi and expanding the new customer segments — Ethnics, which caters to high
growth premium ethnic wear.
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INDIAN RETAIL SECTOR

India’s retail industry growth is predominantly supported by expanding consumption
patterns and rising income levels. With a dynamic demographic shift consisting of young
consumers, the demand is expected to remain positive.
Moreover, the growing penetration of mobile and internet across the interiors of India has
led to a significant rise in e-commerce shopping.
Raymond has one of the most deeply penetrated retail networks in India with The Raymond
Shop offering textile, apparel, accessories and custom tailoring services under one roof.
The Raymond Shop has translated into a one-stop solution with the stores emerging as a
fashion destination. The Company has a retail network of 1,444 stores, including 1,392
stores in about 600 towns and cities in India and 52 overseas stores in 9 countries.
GROWTH ENABLERS
Growing urbanization, a higher disposable income of the Indian households and a
favourable demographic coupled with an aspiration-based purchasing pattern are key
drivers for the industry and is likely to benefit the Company. With the growing mobile and
internet penetration, e-commerce shopping is expected to act as a key enabler in
consistent sales volume growth for the industry.
The Group has a strong focus on digital platforms, strong social media connect with
consumers and increasing presence in the e-commerce space through Raymondnext.com
– a one-stop fashion solution for all brands under the Raymond umbrella and all leading e-
commerce platforms.
While your Company is attuned to judicious capital allocation strategies and sustainable
growth, Raymond continues to work towards achieving cost efficiencies and provide its
customers the best experience.
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ELECTRICITY/POWER INDUSTRY
GDP and Electricity

35
GDP in Billions and Electricity's WPI

30
25
GDP 20
Electricity 15
Expon. (GDP)
10
Expon. (Electricity)
5
0
1990 1995 2000 2005 2010 2015 2020
Years 1994-2018
Interpretation of the Graph

As we can see the trendline of GDP has grown exponentially, and trendline of WPI (wholesale
price index) of Power Industry has exponentially decreased overall. The above mentioned
trendline of Electricity has increased until 2009 and has decreased after the above-mentioned
year. This represents A hockey stick effect on the actual data represented on the graph. As
we can see that in recession period of 2007-2009 the GDP growth has decreased until 2008
and has increased in further year. But, in those same years actual data of electricity has
increased.
Inflation has decreased rapidly in year 2009 until 2010 and has increased after that until 2018.
This decrease has caused a downward trend in the trendline of electricity.
History
The Indian Power Industry plays a critical role in the economic progress of the country and
must be emphasized. Before Independence British controlled the Indian power industry
firmly. Then due to legal and policy framework it was conducive to private ownership, with
not much regulation about operational safety. The country was faced with capacity restraint
after Independence immediately. India adopted socialist structure for economic growth and
all major industries were controlled by public sector enterprises. In 1970's India nationalized
26 | P a g e
most of its energy assets, as it was committed to social goals. By 1980's the Indian economy
felt the importance of socialist agenda and followed it since independence. Serious
deterioration has been faced by the Union government as part of its policy of economic
liberalization with public finance and balance of payment crisis allowed greater investment
by private sector in the power industry. Power falls in the Concurrent List
(List III of the Seventh Schedule to the Constitution of India) as a matter of legislative and
executive competence. The Union government passed several laws Understanding the critical
part played by the power industry and restructured the Power Industry to gear it up to meet
the challenges posed to the Indian economy post Liberalization.
Electricity Bill 2001

The Indian government passed the Electricity Bill 2001.The Bill seeks to Consolidate and
rationalize existing laws. To solve such issues of developing industry including regulation,
power trading, non-discriminatory open access, choice of dispensing with vertically
integrated state enterprises and encouraging private enterprise.
Energy Conservation Act 2001

The Act was formed by the Indian government to facilitate stringent steps to ensure the
efficient use of energy and its conservation. Even the Bureau of Energy Efficiency has been
set up to monitor and regulate the Power Industry according to the provisions of the act.
The Indian power industry derives its funds and financing from the government and some
private players that have entered the market recently like from World Bank, public issues and
other global funds. The Power Ministry of India has set up Power Finance Corporation of India
that is mainly responsible for the financing of the power sector in India. The corporation
provides finance to major power projects in India for power generation and conversion,
distribution and supply of power in India. There is also one body called Power Finance
Corporation (PFC) Ltd India which takes care of the installation of any new power projects as
well as renovation of an existing power project in India. PFC is an association for central
electricity authority and the ministry of power facilitates the development in infrastructure
of the power sector in India. They also take care of constructing mega power projects that
will answer to the power shortage in various states through power
transmission through regional and national power grids.
27 | P a g e
Size of the industry

The total installed capacity of power in India is calculated to be 145,554.97 megawatts, out
of which 75,837.93 megawatts (52.5%) is from States, 48,470.99 megawatt (34%) from
Centre, and 21,246.05 megawatt (13.5%) is from Private sector initiatives. The Generation
capacity of power is 141 GW; 663 billion units produced (1 unit = 1kwh)-during the year
January 2008 and the CAGR (Capital Accumulated growth Rate) is of 5% over the last 5 years.
India has turned itself into the fifth largest electricity generation capacity in the world with
Low per capita consumption at 631 units; less than half of China. The Transmission &
Distribution network of power is 6.6 million circuit km which accounts for the third largest in
the world All over India Coal fired plants constitute 54% of the installed generation capacity,
followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 8% from
renewable sources.
1. National Thermal Power Corporation (NTPC)

2. National Hydro Electric Corporation (NHEC)
3. Power Finance Corporation of India (PFCI)
4. Nuclear Power Corporation of India Limited (NPCI)
5. North Eastern Electric Power Corporation (NEEPC)
6. Rural Electrification Corporation (REC)
7. Damodar Valley Corporation (DVC)
8. Bhakra Beas Management Board (BBMB)
9. Tehri Hydro Development Corporation (THDC)
10. Satluj Jal Vidyut Nigam (SJVN)
11. Power Grid Corporation of India Ltd (Power Grid India)
12. Power Trading Corporation (PTC)
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Many government and private organizations have taken up the task of power generation in
India. The major Indian power companies playing prime are:
1. Bhakra Beas Management Board

2. Enercon Systems India
3. Essar Group
4. GMR Group
5. Gujarat State Petroleum Corporation Ltd
6. Jindal Steel & Power Limited
7. Karnataka Power Transmission Corporation Limited (KPTCL)
8. Karnataka Renewable Energy Development Limited
9. Konarka
10. Magnum Power Generation Limited
11. Nippo Batteries
12. Reliance Energy Ltd.
13. Shri Shakti
14. Durgapur Projects Limited
15. Satluj Jal Vidyut Nigam Ltd.
16. United Power
17. Ventral Systems Pvt. Ltd.
18. Enron India Power Plant
19. Celetronix Power India
20. Caterpillar Power India
21. Alton Power India
22. Thorium Power India
23. GE Power Controls India
24. Green Power India
Power Supply Units India

In India Power is derived from many sources like:
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Thermal Power is mainly generated through coal, gas and oil. As India being vested with major
sources for coal.
Hydropower is one of the mega power generators in India. Various hydropower projects &
plants have been set up by the ministry of power for generation of hydro power through
construction of various dams and reservoirs on major rivers. The kinetic energy of the flowing
water is being used to generate hydroelectricity.
Wind Power is available in plenty as India witnesses high intensity winds in various regions
due to the topographical diversity in India.
Solar Power is being utilized to generate electricity on a smaller scale by setting up massive
solar panels and capturing the solar power which is instead used by the small-scale industries.
Nuclear Power is generated at huge nuclear power plants and nuclear power stations in India
using the nuclear energy. All the nuclear power plants are managed by the Nuclear Power
Corp of India Ltd (NPCL).
Biogas Power is still in its infancy stage as India is the largest domestic cattle producer and
has plenty of biogas fuel and thus utilization of the fuel for mass biogas production by setting
up more biogas plants would solve the power shortage problem to some extent.
NTPC contribution to National Economy
NTPC Ltd. generates electricity that lights home, brightens villages, irrigates fields, powers
businesses and moves the railways. With pan-India presence and perspective, NTPC is
supplying power through its large and efficient fleet of power generating stations with total
capacity of 31,134 MW. It has 22 stations, consisting of 113 units of different sizes, vintage
and technologies but all have one common feature, that of generating power at high
efficiency levels. NTPC’s stations and projects are in 16 States and the Union Territory of Delhi.
30 | P a g e
It supplies power to 24 States and 5 Union Territories. After the completion of its Bongaigaon
Thermal Power Project in Assam, it will be supplying power to all the 28 States of India. NTPC
has been described as a 'magnificent national enterprise’ It is a precious national asset and a
profitable business enterprise.
In year 2009-10 NTPC recorded a generation of 218 BUs against target of 210 BU. Eleven (11)
coal based stations of NTPC achieved a PLF of more than 90%.This is against 77.5% of the
national average PLF for the year 2009-10.The PLF of NTPC all coal stations is 90.81% for the
yr. 2009-10.The gas based power stations of NTPC Ltd. Also registered a remarkable
improvement during the year mainly due to the availability of gas from KG D-6 gas block. In
the yr. 2009-10 all gas-based stations of NTPC Ltd. Achieves more than 75% PLF. As per MOU,
NTPC Ltd. Committed to generate 226000 Million Units (MUs) of electricity in the year 2010-
11 from its plants.
The Compound Annual Growth Rate (CAGR) of power demand for the last five years has been
6.80% as against power supply CAGR of 5.88%. The CAGR of NTPC Ltd. power generation has
been higher at 6.79%. Strong appetite for electricity consumption in the country translates
into robust growth outlook for power players like NTPC Ltd.
NTPC Ltd. paid highest ever interim dividend of Rs 3 per equity share being 30% of the paid-
up equity share capital of the Company amounting to Rs. 2473.64 crore for the Financial Year
2009-10. Out of this, an amount of Rs. 2090.21 crore was paid to Govt of India holding 84.5%
of NTPC’s paid up equity
For achieving the higher growth rate of 8-9% of national economy power ministry has set a
target of 78,700 MW capacity addition target for XIth plan (2007-12). Being the biggest power
company of India NTPC ltd. has set a capacity addition target of 21,941 MW for (2007-12)
which it will achieve by setting 23 new units of power plant. Concerted efforts are being made
to enhance power supply at a rapid pace and meet growing electricity requirements. NTPCLtd.
is playing a major role in this national endeavour.
NTPC is in an extremely good position to grow in this scenario of growing power demand.
NTPC provides growth momentum to the sector creates benchmarks of operational
excellence and promotes sustainable energy development. It is committed to develop and
provide reliable power, related products and services at a competitive price, integrating
31 | P a g e
multiple energy sources with innovative and eco-friendly technologies’ has 5 subsidiaries and
15 joint ventures which strengthen its business model aimed at related diversification and
integration along the energy-value-chain as an effective growth strategy.NTPC’s stock
remained the most resilient during the recent phase of market slowdown and turbulence,
demonstrating that NTPC has the strength to maintain its course even in rough weather.
Strong asset base of over Rs. 1 trillion or Rs. 1 lakh crore, robust business model, prudent
strategies, growth-oriented market and its corporate strengths guarantee steady progress of
NTPC over the long term.
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RUBBER INDUSTRY
GDP and Raw Rubber

45
GDP in Billions and Raw Rubber's WPI

40
35
30
GDP 25
Raw Rubber 20
Expon. (GDP) 15
Expon. (Raw Rubber) 10
5
0
1990 1995 2000 2005 2010 2015 2020
Year 1994-2018
Interpretation of the graph
ACTUAL DATA (WPI)

From 1994 WPI increased until 1995 and reaches an upper yield limit till 1996 and decreased
till 1998 and started to increase until year 2008 and has fluctuated till year 2012. Saw a hockey
stick effect from 2012 to 2013 and has managed to remain constant until 2018.
TRENDLINE
As we have seen above, the trendline of GDP (represented in blue) has increased
exponentially even when there was recession in year 2007-2009 AND trendline of WPI of raw
rubber has decreased over the years from 1994-2018. Both, the trendlines have intersected
in the year 2010. This means the amount by which the WPI of electricity dropped is equal to
the increase in GDP growth of India over the years.
Brief introduction
Indian rubber industry has been growing in along with the strength and importance, as a part
of India's burgeoning role in the global economy. India is the world's largest producer and the
third largest consumer of natural rubber and is also one of the fastest growing economies
globally. With a stable annual growth rate of 8-9%, rising foreign exchange reserves, rapid
33 | P a g e
expansion in the capital markets and FDI inflow, India proudly stakes its claim as the second
fastest growing major economy in the world. Such factors combined with high concentration
of automobile production and the presence of large and medium industries in South India,
Chennai has become the perfect place for the event India Rubber Expo-2011. Production of
rubber in the world was very unstable during the last few years. Comparatively, with the
world India's production of rubber is consistent at the rate of 6% per annum. The Indian
rubber industry has been growing tremendously over the years.
Indian Rubber Producing Areas divided into two zones - traditional and non-traditional
Traditional Zone Non-Traditional Zone
90% of India's total production of natural rubber is contributed by Kerala. Kerala and Tamil
Nadu together occupy 86% of the growing area of natural rubber.
The Indian Rubber Consumption is as follows
Automotive tyre sector: 50% consumption of all kinds of rubbers

Bicycles tyres and tubes: 15%
Footwear: 12%
Belts and hoses: 6%
Camelback and latex products: 7%
Other products: 10%
Market capitalization
India's Rubber production varies between 6 and 7 lakh tons annually which 29/10/2019 Indian
Rubber Industry, Rubber Industry in India, Rubber Industry, Rubber Industries amounts to Rs.
3000 crores. 70% of the total rubber production in India is in the form of Ribbed Smoked
Sheets (RSS) and is also imported by India accounting for 45% of the total import of rubber.
Today Indian Rubber Industry consists the turnover of Rs 12000 crores. Most of the rubber is
consumed by the tyre industry which is almost 52% of the total production of India. Kerala is
the leading consumer of rubber followed by Punjab and Maharashtra. Though, India is one of
the leading producers of rubber it still imports rubber from other countries. At present, India
is importing around 50000 tons of rubber annually.
34 | P a g e

The size of the Indian Rubber Industry is, there are about 6000 unit comprising 30 large scale,
300 medium scale and around 5600 small scale and tiny sector units. Such units are
manufacturing more than 35000 rubber products, employing 400 hundred thousand people,
which involves22000 technically qualified support personnel, contributing Rs. 40 billions to
the National Exchequer through taxes, duties and other levies. The Indian Rubber Industry
plays a vital role in the Indian national economy as the rubber plantation sector in India
produces over 630 hundred thousand tonnes of natural rubber and there is a projected
production of more than one million tonnes in near future.
Domestic and Export Share

The export share of Indian natural rubber has increased tremendously over the years and
have reached 76000 tons in 2003-04. India's exports of rubber products, which include tyres,
exceeded Rs.2000 cores according to a recent estimate. Products exported are as follows:
Automotive tyres and tubes
Rubber and canvas footwear
Cycle tyres
Pharmaceutical goods
Rubber hoses, cots and aprons
Belts and beltings
Sheeting

The All India Rubber Industries Association (AIRIA) is a non-profit making body serving the
rubber industry and trade with the objectives of safeguarding and promoting interests of the
industry. In the year 1945 the All India Rubber Industries Association was formed which is an
apex body of the Rubber Industries-both tyre and non-tyre sectors and of the traders
dealing in raw rubber, chemicals and other raw materials etc. The Association is to protect
and promote the interests. It has around 1200 members affiliated to it spread all over the
35 | P a g e
country. The Association has its central office at Mumbai with 4 regional offices at New Delhi,
Kolkata, Chennai and Mumbai and a Chapter office at Pune.
Madras Rubber Factory (MRF) was started by K. M. Mammen Mappillai as a toy balloon manufacturing
unit in 1946 at Tiruvottiyur, Madras (now Chennai). In 1952, the company ventured into the manufacture
of tread rubber. Madras Rubber Factory limited was incorporated as a private company in November 1960
and ventured into manufacture of tyres in partnership with Mansfield Tire & Rubber company based
in Ohio, United States. The company went public on 1 April 1961 and an office was established in Beirut,
Lebanon to develop the export market in 1964 and its current logo of the muscleman was born. In 1967, it
became the first Indian company to export tyres to USA.
In 1973, MRF started manufacturing Nylon tyres for the first time. The Company entered into with a
technical know-how collaboration with B.FGoodrich in 1976. The Mansfield Tire & Rubber Co sold out its
share in 1979 and the name of the company was changed to MRF Ltd in the year. The company finalized a
technical collaboration agreement with Marangoni TRS SPA, Italy for the manufacture of pre-cured tread
rubber for re-treading industry. MRF tyres supplied tyres to Maruti 800, India's first modern small car.[1] In
1989, the company collaborated with Hasbro International United States, the world's largest toy maker
and launched Funskool India. Also, they entered into a pact with Vapocure of Australia to manufacture
polyurethane paint formulations and with Italian tyre manufacturer Pirelli for conveyor and elevator belt
manufacture.[6] During the year 2004-05, the product range of the company expanded with Go-kart & rally
tyres and tyres for two/three wheelers.
How MRF has contributed to Indian economy
MRF has treaded a different path. It focuses on calibrated expansion without the help of
external funding. The Chennai headquartered company’s gross block — a gauge of investment
in plant and machinery — rose 12% annually to Rs9,027 crore in
the past 10 fiscal years while sales and net profit increased 10.4% and 22% annually.
Demand in the tyre segment rose 6% on an annual basis in the past 10 years, even as
vehicle sales rose 3% and the replacement market expanded 7-8%.
The company maintained strict discipline over share capital, which remained unchanged at
Rs4.2 crore in the past 10 years. It incurred a capital expenditure of Rs6,846 crore in five
years, but was still able to generate a free cash flow of Rs3,691 crore in the period.
MRF has been following a conservative investment strategy despite the promoter holding
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just over 28% — the rest is with public shareholders. Institutional investors own nearly
21.6% even though the company does not hold investor calls or meetings. The only source
of insight to financial performance is the company’s annual report.
Apart from MRF’s conservative capital policy, what has worked well for it is the focus on
serving the replacement market through a pan-India network of dealers. Nearly 65-70% of
the demand for tyres emanates from the replacement market. Hence, to maintain sustained
volume growth, tyre makers need to have a sizeable dealership network.
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IRON ORE/STEEL INDUSTRY
GDP and Iron Ore

140
120
GDP in Billions and Iron Ore's WPI

100
80
GDP
Iron Ore
60
Expon. (GDP)
Expon. (Iron Ore) 40
20
0
1990 1995 2000 2005 2010 2015 2020
Year 1994-2018
Interpretation of the graph.
ACTUAL DATA
In this graph we see that WPI (Wholesale Price Index) of iron ore remains constant until year
2003 and then has inflated and have seen a hockey stick effect until year 2008 and then the
price has plummeted which means until year 2010 and has increased linearly till 2012 and
then has decreased till 2013 and has been linearly constant until 2018.
TRENDLINE
As we can see that WPI initially was higher than the GDP trendline both have increased
exponentially over the years but as we can clearly see from the graph that trendline of GDP
has surpassed that of WPI of iron ore and has intersected each other in year 2013.
History
India is on an upswing when speaking about the Steel Industry because of the strong global
and domestic demand. The rapid economic growth and progressing demand by sectors like
infrastructure, real estate and automobiles, at home and abroad, has put Indian steel industry
38 | P a g e
on the Global Map. The latest report conveys that in International Iron and Steel Institute
(IISI), India is the seventh largest steel producer in the world. The modern Indian steel
industry's origin was from way back in 1953 when a contract for the construction of an
integrated steelworks in Rourkela, Odisha was signed between the Indian government and
the German companies Fried Krupp und Damage AG. The annual capacity of 500,000 tonnes
was the initial plan, and then later subsequently rose to 1 million tonnes. Presently the
capacity of Rourkela Steel Plant (RSP), which belongs to the SAIL (Steel Authority of India Ltd.)
group, is about 2 million tonnes. The former USSR and a British consortium at a very early
stage also showed an interest in establishing a modern steel industry in India. All these
initiatives resulted in the Soviet-aided building of a steel mill with a capacity of 1 million
tonnes in Bhilai and the British-backed construction in Durgapur of a foundry which also has
a million-tonne capacity.
Brief introduction
Indian steel industry organized itself as three categories such as main producers, major
producers and secondary producers. The main producers & major producers have integrated
steel making facility with plant capacities over 0.5 MT which utilize iron ore and coal/gas for
production of steel. The major producers are Tata Steel, SAIL, and RINL, while the other
producers are ESSAR, ISPAT and JVSL.
The secondary sector is dispersed and consists of firstly the 12 sponge iron producers of
Backward linkage that use iron ore and non-coking coal, providing feedstock for steel
producers; and then the next is approximately 650 mini blast furnaces, electric arc furnaces,
induction furnaces and energy optimizing furnaces that use iron ore, sponge iron and melting
scrap to produce steel and lastly forward linkage with about 1,200 re-rollers that roll out semis
into finished steel products for consumer use.

Indian Steel Industry, Steel Industry, India Steel, Iron and Steel Industry India Steel Industry
has tremendously grown in records for production. In 1992, India was able to produce 14.33
mill and 1.59 million tonnes of pig iron. The steel production capacity of the country increased
rapidly since 1991 and in 2008, India produced nearly 46.575 million tonnes of finished steels
and 4.393 million tonnes of pig iron. In 1992, the total consumption of finished steel was 14.84
39 | P a g e
million tonnes. In 2008, the total number of domestic steel consumption was 43.925 million
tonnes. With the growing demand in the national market, a huge part of the international
market is also served by the Indian Steel industry.
In 2005- April-December the production of the finished steel recorded a growth of 4 % and
reached 28.3 million tonnes. Indian steel industry ranks 10th in the world's scenario. The
industry today represents approximately Rs. 9,000 crore of capital and provides direct
employs more than 0.5 million people.
Role of Steel Industry in Indian GDP-Consumption

Domestic consumption of steel in India has grown by 12.5% better than later years. In the
year 2006-07 the domestic steel consumption was 41.14 million tonnes. The average growth
rate of the Indian Steel Industry is 11.36%. All over India the construction projects are major
consumers of steel. The per capita consumption of steel in India is 35kgs. The largest
steelmaker in the world Arcelor Mittal has plans of establishing two Greenfield steel projects
with capacity of 12 million tonne annually, in India.
Acerinox SA is setting up a steel plant in India, one of the important stainless-steel
manufacturers in collaboration with Nisshin Steel, Japan.
The Tata Steel has plans of expanding its capacity as of 2015 & ranks 5th in the world steel
production. India's biggest producer of steel SAIL has plans of increasing the production to
24.98 million tonnes annually. China's Sinosteel Corp is planning to invest US$ 4 billion to set
up a 5 million tonnes capacity Greenfield steel plant. Tata Steel has acquired Anglo-Dutch
steel manufacturer, Corus. The 1.63 billion US$ acquisition of Canada for The Algoma Steel by
Essar Global.
How SAIL has contributed to Indian Economy
SAIL remains in the public sector as a central instrument of state plans for industrial
development. The country’s reserves of iron ore and other raw materials for iron and steel
make the industry central to the economy. At the beginning of the 1980s India had
recoverable reserves of iron ore amounting to 10.6 billion tons, a natural endowment which
it would take 650 years to deplete at then-current rates of production. The high-grade ore
within this total—that is, ore with an iron content of at least 65%—was, however, thought
40 | P a g e
likely to reach depletion in only 42 years; yet it still represented about one-tenth of the world
total. SAIL has had to struggle to maintain production, let alone expand it, largely because of
circumstances outside its control. Since the purchase of raw materials has typically accounted
for 30% of the Indian steel industry’s production costs, any rise in the prices of coal, ferro-
manganese, limestone, or iron ore will cut into the industry’s profitability. In the first half of
the 1980s, for example, prices for these materials rose by between 95 and 150%, at the same
time as electricity charges rose by 150%. Most of these increases were imposed by other state
enterprises. Nor has it helped SAIL that the high sulphur content of Indian coal has required
heavy investment in desulfurization at its steel plants. Indeed, the industry has had chronic
problems in trying to operate blast furnaces designed to take low-sulphur coking coal. The
more suitable process of making sponge iron with non-coking coal, then converting it to steel
in electric arc furnaces, was introduced in the private sector later, though by 1989 only
300,000 tons were being produced in this way. India’s basic output costs of Rs 6,420 per ton
in 1986 compare well with the averages for West Germany (Rs 6,438), for Japan (Rs7,898) and
for the United States (Rs6,786). What finally keeps Indian steel from being competitive is the
imposition of levies which raise its price per ton by about 30%, and which include excise
duties, a freight capitalization surcharge, and a Steel Development Fund charge.
In spite of such problems, and in response to them, SAIL announced in December 1990 that
it planned to increase its annual output of steel from 11 million to 19 million tons, thus
transforming itself from the world’s thirteenth largest steel producer to its third largest,
within ten years. SAIL’s use of its steel production capacity, running at about 77% in 1990,
would be raised to 95% by 1996, thus permitting output of crude steel to rise by two-fifths
over its current level. However, output for 1990 had been only 6 million tons, compared with
6.9 million tons in 1988, and 8 million tons in 1989. SAIL is no more able than large steel
companies in other countries to achieve the optimum balance between demand and supply,
between increasing the quantity of output and improving its quality by modernizing, and thus
escaping from its heritage of outdated plant and equipment. Neither Hindustan Steel nor SAIL
was ever able to defy the circumstances of the Indian economy or of the world steel industry
on their own, but they have largely achieved the more modest goal of contributing to India’s
post-war economic growth.
Steel Makers face debt challenges after ill-timed bets.

41 | P a g e
India's biggest steelmakers may be suffering from buyer's remorse as assets they bought from
bankrupt rivals stretch their bottom line while market conditions have worsened. Less than
18 months after scooping up these distressed assets in the hopes of extracting
value and boosting market share, the steelmakers are struggling to meet sales and production
targets because of a slowdown in the key construction and auto sectors. Tata Steel Ltd, JSW
Steel Ltd and others are also wrestling with falling revenues amid
high debt loads. "The operating environment has changed from when they bid for these
plants," said Amit Dixit, senior steel analyst with brokerage firm Edelweiss Financial Services.
"So, the payback period obviously gets elongated now." Steel prices were high, and demand
was booming then. Now, confronted with falling prices and slower consumption, steelmakers
are facing the risk of credit downgrades, job losses and cuts in capital expenditure. Arnab
Kumar Hazra, assistant secretary general at the Indian Steel Association, an industry group
that also represents major steel producers, noted companies would take a longer time to turn
their assets around in the current environment.
A deepening credit crunch in India's shadow banking industry following the collapse of a
major infrastructure lender in 2018 has sharply dented spending on cars and real estate in
India. Domestic steel consumption in September was at its lowest since the start of the fiscal
year 2019/20, according to official data. A synchronised global economic slowdown amid the
U.S.-China trade war has compounded the problem, quashing global steel consumption and
intensifying competition among exporters. JSW Steel Ltd, which bought Monnet Ispat &
Energy Ltd in September last year, had promised to turn it around within a year but now says
it will take another year. The company will also miss its sales and production target for
2019/20 by 3% and has had to cut its capital expenditure by a third, said Seshagiri Rao, JSW's
joint managing director and group chief financial officer.
"There is a credit squeeze, there is prolonged monsoon, a weaker government

expenditure and fall in consumer demand," Rao said.
Tata Steel, which bought specialty steel firm Usha Martin Ltd in April, told Reuters the
42 | P a g e
turnaround of the company would be delayed. Tata Steel and JSW are not alone. The world's
biggest steelmaker ArcelorMittal and partner Nippon Steel and Sumitomo
Metal Corp, which committed $6 billion to acquire a 10 million tonne steel plant in India, will
face similar issues, analysts have said.
PRESSURE BUILDING
The problems afflicting the steel majors, which together control over half the country's total
steel production has already surfaced among mid-sized firms.
"Inventory is high, debtor days have extended, and most mid-level steel companies are
now contemplating job cuts," said R.K. Goyal, managing director of Kalyani Steels Ltd
which relies heavily on the automotive sector for steel orders. The credit crunch and
slowdown in autos and real estate pushed India's GDP growth to a six-year low of 5% in the
April-June quarter, in a troubling sign for the steel sector whose fortunes are closely tied to
the broader economy. The extent of the slowdown is prompting companies to revise capital
expenditure plans and others to question the ability of companies to achieve debt reduction
goals. Despite Tata Steel's move to partially defer expenditure on expansions, IIFL analyst
Anupam Gupta said its plans to cut debt by $1 billion this fiscal year look ambitious, given
weakening profitability across India and Europe. Brokerage firm Edelweiss expects both JSW
Steel and Tata Steel to see increases this year in their debt to EBIDTA ratios - a metric that
reflects the cash available to companies to pay debts.
And the downward pressure on steelmakers does not look set to reverse soon.
"We are just sitting idle and waiting for the tide to turn," Kalyani Steels Goyal said.
Latest developments
In 2009 according to The Press Information Bureau, the government took several fiscal and
administrative steps to contain steel prices. Central value added tax (CENVAT) on steel items
was reduced from 14 per cent to 10 per cent with effect from February 2009. India's per capita
consumption of steel is only 27kg per capita, which is far below the level of other developed
and developing countries - 472.4kg, 428.6kg and 128kg in USA, EU and
China respectively. The government for the Union Budget of 2010-11, has also allocated US$
37.4 billion for infrastructure sector and has increased the allocation for road transport by
13% to US$ 4.3 billion which would promote the steel industry.
43 | P a g e
BISCUIT INDUSTRY
35 GDP and Biscuits

GDP
30
Biscuits
Expon. (GDP)
GDP in Billions and Biscuits' WPI
25
Expon. (Biscuits)
20
15
10
0
1990 1995 2000 2005 2010 2015 2020
Years 1994-2018
Interpretation of the above graph.
ACTUAL DATA (WPI)
From 1994 to 1999 the WPI of Biscuits increased until 1999 and has decreased linearly until year 2009
and then the WPI has decreased rapidly until 2010 and has managed to stay constant (sort of) till 2018.
TRENDLINE
The trendline of WPI of biscuits has decreased exponentially from year 1994-2018 AND the trendline
of GDP has increased exponentially over the mentioned years. And they both intersect at a point which
represents years 2009 and 2010. 1
History
India Biscuits Industry came into major existence and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called for ready-
made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days.
44 | P a g e
But today it has become one of the most loved fast food products for every age group. Biscuits
are always easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have
the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and
Uttar Pradesh. Maharashtra and West Bengal are the most industrially developed states; hold
the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55
% of the biscuits in the bakery products.
Indian Biscuits Industry seems to be the largest among all the food industries and has a
turnover of around Rs.3000 crores. Indian subcontinent is known to be the second largest
manufacturer of biscuits, the first being USA. The industry is classified under two sectors:
organized and unorganized. Bread and biscuits are the major part of the bakery industry
and covers around 80 % of the total bakery products in India. Biscuits today stand at a
higher value and production level than bread. This belongs to the unorganized sector of the
bakery Industry and covers over 70% of the total production.
In the year 1990 the total production of bakery products has risen from 5.19 lakh tonnes in
1975 to 18.95 lakh tonnes. Today Biscuits contributes to over 33 % of the total production of
bakery and above 79 % of the biscuits are manufactured by the small-scale sector of bakery
industry comprising both factory and non-factory units in the country. The production
capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive power of 25
K.W. Indian biscuit industry has occupied around 55-60 % of the entire bakery production.
Today the large-scale bakery manufacturers like Cadbury, Nestle, and Brooke bond had
traded in the biscuit industry but couldn't hit the market because of the local companies that
produced only biscuits. Government has established The Federation of Biscuit Manufacturers
of India (FBMI) which has confirmed a bright future of India Biscuits Industry in the year 1953.
According to FBMI, a steady growth of 15 % per annum in the next 10
years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also
surpass the target and hit the global market successfully.
Brief Introduction
Today the total production of biscuits in India is estimated to be around 30 lakh MT, the
organized sector accounts for 65% and the unorganized sector accounts for 35% of the total
industry volume and the organized sector is valued at above Rs 8000 crores. While the biscuit
industry is estimated to grow over 15-17% in the next few years. The biscuits per capita
45 | P a g e
consumption in India is 2.0 kg. India is ranked 3rd after US and China amongst the global
biscuit’s producers. The export of biscuits is approximately 17% of the annual production, the
export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for
year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA,
Ghana, UAE. The imports are not significant amount as compared to the total consumption.
The penetration of biscuits in India among the urban and rural market is 85% and 55%
respectively. The annual turnover for the organized sector of the biscuit manufacturers at
2001-02 is Rs. 4,350 crores. The annual Growth showed a decline of 3.5% in
2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%) by the government.
Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the
growth is around 3%. Government took initiative for the development as The Union Budget
for 2003-04 granted 50% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%.
The Federation's estimate indicates a growth of approximately 8% to 9% per year. Biscuit is
always hygienically packaged nutritious snack food available at very competitive prices,
volumes and different tastes.
According to the NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH (NCAER) analysis,
biscuits are predominantly consumed by people from the lower strata of society, particularly
children in both rural and urban areas with an average monthly income of Rs. 750 and above.
Market Capitalization
India Biscuits Industry is the largest among all the food industries and has a turnover of around
Rs.4350 crores.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive
power of 25 K.W. Indian biscuit industry has occupied around 55-60 % of the entire bakery
production. The Indian Biscuit industry for the organized sector produces around 60% of the
total production, the balance 40% being contributed by the unorganized bakeries. The
industry consists of two large scale manufacturers, around 50 medium scale
brands and small-scale units ranging up to 2500 units in the country, as at 2000-01. The
unorganized sector is estimated to approximately have 30,000 small & tiny bakeries across
the country.
46 | P a g e
Total contribution to the economy/ sales

Biscuit industry contributes Rs 8,000 crore to the FMCG industry today, provides vast
opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our
country. India is classified under two sectors: organized and unorganized. Branded /Organized
to Unbranded/Un organized market share of biscuit has been 70% for Organized sector and
30% for Unorganized sector. Apart from Big 3(Britannia, Parle, ITC) there are around 150
medium to small biscuit factory in India.

Parle
Britannia
Sunfeast
Priya Gold
Cremica
Dukes
Anmol
Horlicks
Biskfarm
Rose
Sobisco
Nezone
How Biscuit Industry has affected Indian Economy
When snack makers start to lament that Indians can’t afford to spend Rs 5 on biscuits, it’s
time to stop arguing over how much of the nation’s slowdown is cyclical and what part is
structural.
Considering its glaring income, wealth and consumption inequalities, India is a surprisingly
calm society. However, when purchasing power dries up to the extent that rural laborers and
urban blue-collar workers must think twice about cheap munchies, then the situation is
desperate. The culprit is deep-rooted wage suppression, a long-term issue that needs
47 | P a g e
attention.
Britannia Industries Ltd., the No. 1 Indian biscuit maker, recently sounded alarm bells over
the sharp deceleration in its domestic sales volumes. Rival Parle Products Pvt. chimed in and
said jobs were at risk for as many as 10,000 of its workers.
A Parle executive blamed India’s 2017 goods and services tax, or GST. While the consumption
tax may indeed have been an additional burden in an economy slowing under a disastrous
November 2016 currency ban, the funk has its roots in insufficient wages. In recent years,
only about a third of the economy’s income has gone to labour, with providers of debt and
equity capital taking the rest, according to India Ratings and Research Pvt., a unit of Fitch
Ratings. Raising that 33.2% labour share to the developing-country average of 37.4% would
put an extra $100 billion of annual spending power in the hands of Indian households.
Only then can India start facing up to the tougher challenge of reaching advanced-economy
levels. It has a long way to go. The labour share of income in the U.S. was almost 57% in 2016,
even after a near 10-percentage-point drop following World War II that was caused by
technological changes and globalization, according to McKinsey & Co.
Trouble is, the distribution of the Indian economic pie is more lopsided than the aggregate
numbers suggest. As India Ratings’ analysis shows, 80% of the output generated in informal
production gets used up in paying for capital, which is scarce; households get only 20% in
exchange for toiling on farms and in cottage industries. At the same time, only 32% of the
production of a bloated public sector is shared with the taxpayers and banks that provide the
capital; as much as 68% goes to a privileged group of state and quasi-state workers who enjoy
assured jobs and higher pay than they would in the private sector.
The long-overdue privatization of inefficient behemoths like Air India Ltd. would reduce the
wastage of capital in the public sector. But it won’t automatically help informal private
businesses grow and become productive. In its first term, the government of Prime Minister
Narendra Modi thought taxation would provide the required nudge. It set out to formalize
48 | P a g e
entire supply chains by bringing even small firms under the ambit of the GST. The poorly
designed, badly implemented plan backfired.
Two years later, New Delhi is furious that it can’t meet revenue targets; its frustration is
leading to an antagonistic stance toward firms. Meanwhile, industries from autos to biscuits
are demanding lower GST rates. There’s no fiscal room to please all. The government hit the
brakes on its own investments in the June quarter, amid an extended slump in private capital
expenditure.
Taxes aren't the solution. Easier hiring-and-firing norms — and not mere consolidation of
archaic labour laws — will boost employment in more productive large firms that can pay
better. If Amazon.com Inc. can build its largest global centre in India, why should factories be
afraid to scale up by hiring blue-collar workers? At the other end of the spectrum, small firms
need finance.
A yearlong liquidity crunch in the shadow banking industry has caused jitters in India’s market
for loans-against-property, which is how midsize businesses finance themselves. But even the
luxury of a $25,000 loan obtained by mortgaging property worth $350,000 isn’t for everyone,
as Pratibha Chhabra, a financial inclusion specialist at the World Bank, notes. Most small firms
only have inventory and invoices to pledge, and no lender wants to be left holding half-made
chairs, or potatoes rotting in a warehouse.
However, if a bank lending to a furniture maker or a potato farmer in India can get repaid
directly by Ikea or PepsiCo Inc. against certified invoices, it can share the benefit of the final
customer’s creditworthiness with the borrowers. This is how Citigroup Inc. greases the global
supply chain of 700 multinationals and their 70,000 vendors. Since most tiny businesses run
on household labour, only statisticians will worry about whether wages or profits are getting
the lift. Spending power in the economy will rise.
Such financing is well established in developed markets, though in India “to efficiently finance
small firms by locating them in larger supply chains will be the next frontier,” says Gaurav
Arora, head of Asia Pacific at Greenwich Associates LLC.
49 | P a g e
India is overdependent on Bangladesh’s model of microfinance, which uses group pressure

and social shame to collect on exorbitantly priced — but collateral-free — small loans. The
country is barking up the wrong tree. A woman doing embroidery on a sari will never get more
than a fraction of what her craft will ultimately sell for. But she can be given access to cheap
credit. Then, she’ll also be able to buy more biscuits for her children.
Parle’s current scenario with economic slowdown.
Parle, founded in 1929, employs about 100,000 people, including direct and contract workers
Mayank Shah, category head at Parle, Shah said demand for popular Parle biscuit brands
such as Parle-G had been worsening since India rolled out GST in 2017
Parle Products Pvt Ltd, a leading Indian biscuit maker, might lay off up to 10,000 workers
as slowing economic growth and falling demand in the rural heartland could cause
production cuts, a company executive said on Wednesday.
A downturn in Asia's third-largest economy is denting sales of everything from cars to
clothing, forcing companies to curtail production and raising hopes that the India
government will unveil an economic stimulus to revive growth.
A sharp drop in Parle's biscuit sales means the company may have to slash production,
which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle,
said in a telephone interview from Mumbai.
"The situation is so bad, that if the government doesn't intervene immediately ... we may
be forced to eliminate these positions," he said.
Parle, founded in 1929, employs about 100,000 people, including direct and contract
workers across 10 company-owned facilities and 125 contract manufacturing plants.
Shah said demand for popular Parle biscuit brands such as Parle-G had been worsening
since India rolled out a nationwide goods and services tax (GST) in 2017, which imposed a
higher levy on biscuits costing as low as 5 rupees, or 7 cents a pack.
The higher taxes have forced Parle to offer fewer biscuits in each pack, hitting demand
from lower-income consumers in rural India, which contributes more than half of Parle's
revenue and where two-thirds of Indians live.
"Consumers here are extremely price-sensitive. They're extremely conscious of how many
biscuits they are getting for a particular price," Shah said.
50 | P a g e
Parle, which has an annual revenue of above $1.4 billion, held talks over the past year
with the government's GST council as well as former Finance Minister Arun Jaitley, asking
them to review tax rates, Shah added.
Once known as Parle Gluco, the Mumbai-headquartered company's flagship biscuit brand
was renamed as Parle-G and became a household name in India through the 1980s and
1990s. In 2003, Parle-G was considered the world's largest selling biscuit brand.
The slowdown in India's economic growth, which has already led to thousands of job
losses in its crucial automotive industry, was accelerating the drop-in demand, Shah said.
Market research firm Nielsen said last month India's consumer goods industry was losing
steam as spending in the rural heartland cools and small manufacturers lose competitive
advantages in a slowing economy.
Parle is not the only food product company to have flagged slowing demand.
Varun Berry, managing director of Britannia Industries Ltd, Parle's main competitor, said
earlier this month that consumers were "thinking twice" about buying products worth just
5 rupees.
"Obviously, there is some serious issue in the economy," Berry had said on a conference
call with analysts.

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1|Page

University School of Management and

Comparison of Cost Index of ten Indian

Tanveer Hurra 2k19/BMBA/19

Subject: Managerial Economics

S.No. Topic Page No.

2 Milk and Dairy Industry 5

5 Mineral Oil/Petroleum Industry 13

6 Limestone and Cement Industry 16

8 Electricity and Power Industry 25

10 Iron Ore and Steel Industry 37

Milk and Diary Industry

Significant Industry: Amul

GDP and Milk Plot

Significant Industry: Hindustan Unilever

GDP and Cost Index:

GDP and Tea Proccessed

Leather and Leather Products

Significant Industry: Liberty

GDP and Leather

Mineral Oil Industry

GDP and Mineral Oil

Limestone/ Cement Industry

Significant Industry: Gujarat Ambuja Cement Limited, Ultratech Cement, JK Cements.

GDP and Limestone

Textile and GDP

GDP in Billions and Testiles' WPI

Interpretation of the Graph

Total contribution to the economy/ sales

Domestic and Export Share

Top leading Companies

Investments in the Textile Industry

Raymond’s contribution in Textile Industry and Economic Growth

GLOBAL TEXTILE AND APPAREL INDUSTRY

geographical manufacturing hubs, as the industry is driven by the availability of cheap

INDIAN TEXTILE INDUSTRY

INDIAN APPAREL INDUSTRY

INDIAN RETAIL SECTOR

GDP and Electricity

GDP in Billions and Electricity's WPI

Interpretation of the Graph

Electricity Bill 2001

Energy Conservation Act 2001

Size of the industry

Top leading Companies

1. National Thermal Power Corporation (NTPC)

1. Bhakra Beas Management Board

Power Supply Units India

NTPC contribution to National Economy

GDP and Raw Rubber

GDP in Billions and Raw Rubber's WPI

Interpretation of the graph

ACTUAL DATA (WPI)

The Indian Rubber Consumption is as follows

Automotive tyre sector: 50% consumption of all kinds of rubbers

Size of the industry

Domestic and Export Share

Top leading Companies

How MRF has contributed to Indian economy

IRON ORE/STEEL INDUSTRY

GDP and Iron Ore

GDP in Billions and Iron Ore's WPI

Interpretation of the graph.