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CONTENTS:
* Company Background

* About The Industry


* Environmental Analysis * Michael Porters Five Force Model * Competition * SWOT Analysis * Companys Competitiveness * Conclusion
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COMPANY BACKGROUND:
LIC Housing Finance Ltd. is one of the largest
Housing Finance company in India. Incorporated on 19th June 1989 under the Companies

Act, 1956, the company was promoted by LIC of


India and went public in the year 1994. The Company is recognized by National Housing

Bank and listed on the National Stock Exchange


(NSE) & Bombay Stock Exchange Limited (BSE) and its shares are traded only in D-mat format. The

GDR's are listed on the Luxembourg Stock Exchange.


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VISION AND MISSION


VISION
To be the best housing finance company in the country.

MISSION
Provide secured housing finance at an affordable cost, maximizing shareholders value with higher customer sensitivity.
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VALUES
Transformation to a knowledge organisation
The Company is committed to the growing use and sharing of knowledge as a driver of business success. All decisions are based on merit and a respect for sound Judgement.

Sense of ownership
At the Company, we believe that superior performance comes from a feeling of ownership. And ownership comes from aggressive delegation and empowerment.

Quality and autonomy in Operations


The Company is committed to an aggressive delegation in decision-making whereby relevant initiatives can be taken closest to the customer.

Fair and transparent business practices


Ethics and transparency form the basis of the business of LIC Housing Finance. On the macro-level, the Company complies with all the laws of the lands in which it operates, on the micro-level the Company respects the dignity of every individual. Free Powerpoint Templates

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PRODUCTS AND SERVICES


1. Home loans i. Resident Indian ii. Non resident Indian iii. Pensioner iv. Facilities 2. Corporate loans i. Corporate employees ii. Staff quarters iii. Office premises iv. LOC to corporates v. Co-operatives societies vi. Public agencies 3. Builders/ Developers i. Approved financial projects 4. Others i. Home entity ii. Reverse mortgage iii. Loans to professionals. Free Powerpoint Templates Page 6

SHAREHOLDING PATTERN:

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COMPANY URL :
http://www.lichousing.com//lichousing/index_new.asp

Face Value And Current Market Share:


MARKET SHARE: BSE:Sep 20, 09:17 254.60 -3.20 (-1.24%)VOLUME 29,102 PREV. CLOSE 257.80 FACE VALUE: Rs 2.00

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ABOUT THE INDUSTRY:

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INDUSTRY VALUE CHAIN


1. Acquisition and occupancy of a lot

5. Finance of steps in progressive housing process.

2. Upgrading property tenure to achieve security of occupation

4. Construction of the house structure

3. Provision of basis infrastructure

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Key success factors


The key success factors concerns: 1. Land administration 2. Legal & regulatory framework 3. Housing finance 4. Skill and capacity building 5. Building materials, appropriate design & technology.

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Environmental analysis
Socio-cultural 1. Lifestyle Changes 2. Growing Population 3. Impact Of Generation Y 4.Increase In Work Force

General economic conditions

1. Inflation 2. Fiscal Rates 3. Interest Rates 4. Lower Output Volatility.

Technology

1. Hardware Improvements 2. Software Improvements 3. Econometric Modeling.

1.Reserve Bank Of India Requirements. Legal and 2. National Housing Board requirements. regulatory Free Powerpoint Templates Page 12

PORTERS 5 FORCE MODEL


Bargaining powers of buyers [HIGH]

Threats from new entrants [HIGH]

Rivalry with the Industry [High]

Bargaining powers of Suppliers [HIGH]

Threat form substitute products [LOW]

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Bargaining power of Buyers:


Is high because There are dominant buyers It is a standardized product

Bargaining power of Suppliers:


Is high because There are dominant suppliers. Suppliers threaten to integrate forward into the industry

Threat of New Entrants


Is high because: Customer switching cost. Easy to enter (banks)

Competitive Rivalry within the industry


Is high because Rivalry is more. Barriers to leaving an industry are high
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Threat of Substitute Products

Is low because: No substitute Free Powerpoint Templates for housing loans.

Competitors with Market share


Name Last Price Market Cap. (Rs. cr.) 760.90 258.80 184.25 183.80 89.25 108.85 55.05 117,055.93 13,060.68 3,276.89 2,151.88 480.62 222.98 81.86 Sales Turnover 17,332.94 6,114.86 513.91 2,467.76 439.42 286.83 12.47 Net Profit Total Assets

HDFC LIC Housing Fin GRUH Finance Dewan Housing GIC Housing Fin Can Fin Homes Sharyans Res

4,122.62 914.20 120.34 306.41 59.04 43.76 4.46

115,001.56 53,552.12 4,214.82 18,985.49 3,664.05 2,329.86 179.22

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*http://www.moneycontrol.com/competition/lichousingfinance/comparison/LIC

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SWOT ANALYSIS
Weakness:
Lethargic staff Mediocre top bosses Large scale corruption in main office Ultra-slow decision making process Internal problems between top management and lower care employees.

Strengths:
Brand image Government guarantee Claims settlement Pan India presence Large product portfolio

Opportunities:
Pension market Health insurance Large real estate portfolio
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Threat:
Internal discord New players Red- tapism
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COMPANY ANALYSIS
According to the Consolidated - Audited financial statement for the Year of 2012, total net operating revenues increased with 28.10%, from INR 4,874.66 tens of millions to INR 6,244.58 tens of millions. Operating result increased from INR 4,148.39 tens of millions to INR 5,731.03 tens of millions which means 38.15% change. The results of the period decreased -5.46% reaching INR 916.23 tens of millions at the end of the period against INR 969.15 tens of millions last year. Return on equity (Net income/Total equity) went from 23.12% to 16.05%, the Return On Asset (Net income / Total Asset) went from 1.96% to 1.42% the Net Profit Margin (Net Income/Net Sales) went from 19.88% to 14.67% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 1129.68% compared to 1177.45% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 12.07 to 5.86 when compared to the previous year.

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