Current corporate analysis (aviation and automobile industry)

1. Current Corporate Analysis
(Aviation and Automobile Industry)

2. AVIATION INDUSTRY IN INDIA
● India is the 9th largest aviation market in the world.
● India aviation industry promises huge growth potential due to:
i. large and growing middle class population rapid economic growth,
ii. higher disposable incomes,
iii. rising aspirations of the middle class,
iv. Overall low penetration levels.
● Civil aviation industry in India is experiencing a new era of expansion driven by factors such as: low cost carriers,
modern airports, foreign direct investments in domestic airlines, cutting edge information technology interventions,
growing emphasis on regional connectivity.
● Healthy Growth of Passenger Traffic (passenger traffic expanded at a CAGR of 11.16 per cent over FY 2006 –15 )
● Road Ahead: India’s aviation industry is largely untapped.
● Vision of becoming the third-largest aviation market by 2020 and the largest by 2030.
● Robust technical and engineering capabilities backed by top-notch scientific and technical institutes are other
positive offerings on the table.

3. AUTOMOBILE INDUSTRY IN INDIA
● The Indian automobile industry is one of the largest in the world with an annual production of 23.37 million vehicles
in FY 2014-15 ( growth of 8.68 percent over the last year).
● The automobile industry accounts for 7.1 per cent of India’s gross domestic product (GDP).
● The Two Wheelers segment with 81 per cent market share of the Indian Automobile market.
● Exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has
13 per cent market share.
● India is a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014-15,
automobile exports grew by 15 per cent over the last year.
● Several initiatives by the Government of India and the major automobile players in the Indian market are expected to
make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.
● The Indian automotive sector has the potential to generate up to US$ 300 billion in annual revenue by 2026, create
65 million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product, as per the Automotive
Mission Plan.

4. Executive Management
Chairman & CEO : Heather Reisman
Board of Directors :
Mr. Frank Clegg
Mr. Jonathan Deitcher
Mr. Mitchell Goldhar
Mr. James Hall
Mr. Michael Kirby

5. Managing Director : Mr. Rahul Bhatia
Chief Financial Officer : Mr. Kay Brekken
Chief Financial Officer : Ms. Kirsten Chapman
Chief Operating Officer : Ms. Joyce Gray
Company Secretary : Ms. Kathleen Flynn

6. CURRENT OPERATIONS OF INDIGO
❖ One time Arrival at 90%
❖ Maximum orders in the industry
❖ fuel efficiency-15%
❖ Operational cost-8%
❖ Started fuel hedging
❖ operating hours-11.5 hours/day/plane
❖ frequency-647 daily flights

7. CURRENT OPERATIONS OF INDIGO
RESULTS
❖IndiGo has been able to increase its market share
❖Long-term visibility on aircraft
❖Strong depth of network
❖Supply and demand dynamics

8. Financials

12. Growth Opportunities
•As the economy is at a growing trend, the demand for aviation
and its services also increases.
•Increase in the disposable income
•Tastes, preferences and fashion towards holidays
•India will be ranked 4th
biggest market in terms of value for all new
aircraft deliveries after China, the USA and the UAE during the next
20 years, according to the aircraft maker Airbus at the Paris air
show.

13. Forward looking statement - Aviation industry
❖ IndiGo ordered for 250 A320neo aircraft for $26.5 billion.
❖ Hat-trick of highest orders for IndiGo
❖ Bombarding the Indian market with capacity.
❖ Targeting under-penetration. Only 400 planes for 1.2 billion people.
❖ Sale-and-leaseback method followed.
❖ Crude down to $50 levels and likely to be at $70-75 for the next 3 years.
❖ Operates about a fourth of the total aircraft to corner more than a third (40 %) of market.
❖ Valued at over 25,000 crore, nearly four times the combined SpiceJet and Jet Airways.₹

14. SWOT ANALYSIS - IndiGo

15. INTRODUCTION-MAHINDRA AND MAHINDRA
❖ Mahindra & Mahindra Ltd is a flagship company of the Mahindra Group,
based in Mumbai, India.
❖ It was set up in 1945 ,Ludhiana as Mahindra & Mohammed by brothers ,K.C.
Mahindra and J.C. Mahindra along with Malik Ghulam Mohammed.
❖ Follow a unique business model of creating empowered companies.
❖ Strategic Management of the company - Organisational Restructuring
❖ Emphasis was on development of long term strategy and fixing clear business
goals.

16. COMPANY MANAGEMENT
BOARD OF DIRECTORS :
Anand G Mahindra Chairman & Managing Director
Deepak S Parekh Director
M M Murugappan Director
Anupam Puri Director
Vikram Singh Mehta Director
S B Mainak Nominee Director

17. Current Operation - M& M
M&M owns assembly plants in India, Mainland China (PRC),the United Kingdom,and has three assembly plants in
the United States. Mahindra maintains business relations with foreign companies like Renault SA, France.
Mahindra started making passenger vehicles firstly with the Logan in April 2007 under the Mahindra Renault joint
venture.M&M made its maiden entry into the heavy trucks segment with the
Mahindra Truck and Bus Division, the joint venture with International Truck, USA.
Mahindra produces a wide range of vehicles including MUVs, LCVs and three wheelers. It manufactures over 20
models of cars including larger, multi-utility vehicles like the Scorpio and the Bolero. It formerly had a joint
venture with Ford called Ford India Private Limited to build passenger cars.
Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of the Mahindra
Scorpio in Egypt,in partnership with the Bavarian Auto Group. This was soon followed by assembly facilities
in Brazil.
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In 2011, it also gained a
controlling stake in South Korea's SsangYong Motor Company.

18. Financial Statement speaks...
❖ Recorded total sales of 3,96,534 vehicles and 59,404 three–wheelers as compared to
4,34,505 vehicles and 64,510.
❖ Net income declined by 3.47%
❖ PBIT declined by 7.67%
❖ PAT by 11.62%
❖ D/E Ratio 0.19
❖ CRISIL, ICRA and CARE rating –AAA
❖ Dividend of Rs 12 per Ordinary share of face value Rs 5

19. Ratio Analysis- M & M
Ratio Mar’15 Mar’14 Mar’13
Earnings Per Share (Rs) 56.16 63.67 53.8
ROA(%) 10.34 12.8 13.09
P/E Ratio(x) 21.14 15.4 15.16
Net Profit Growth 11.63 12.1 16.46

20. Share Market Status

21. Growth Opportunities

22. Milestones
❖ 2003, Deming Prize
❖ 2005, Common Rail Diesel engine(CRDe)
❖ 2007, #2 Most trusted car companies in India
❖ 2007, Mahindra Shaan (first multi utility tractor in India)
❖ 2015, 5 millionth vehicle
❖ 2015, #814 in Forbes world's biggest public companies

23. Forward Looking Statement- Automobile Industry

24. Forward Looking Statement- Automobile Industry

25. Videos