Market Analysis: Review on Wednesday, Dec 8
Consumer
Durable
firms
set
up
investments
Consumer
durable
companies
are
stepping
up
investments
in
production
and
distribution
to
cash
in
on
the
demand
the
industry
is
witnessing.
The
Rs
25,000-crore
consumer
durable
industry
is
slated
to
grow
at
a
rate
of
17-18
percent
over
the
next
five
years,
to
touch
Rs
60,000
crore.
Already, the festive period, stretching from Jul to Nov, has been a good one for most consumer durable companies. Sales growth was in excess of 30 percent compared to last year when it was just half of that.
Peugeot eyes sites in Andhra Pradesh
PSA Peugeot Citroen ( A French carmaker) has surveyed two sites in Andhra Pradesh to set up a manufacturing facility. As per state government official Peugeot officials surveyed two sites one near Sri City in Chittoor district and another near Sitarampet in Ranga Reddy district.
The company is expected to invest about Rs 10,000 crore, including Rs 1,500 crore in the first phase, in the facility. The manufacturing unit could provide employment to more than 10,000 people.
The carmaker had sought slew of incentives including 900 acres land, Rs 600-crore interest-free loan, 100 percent value added tax (VAT) reimbursement for 21 years and physical infrastructure like roads, power and water and others.
ITC eyes acquisition in paper sector
ITC is eying an acquisition for its Paperboards and Speaciality Papers division to add capacity to its paper production, with some of its brown-field expansion plans getting delayed due to land acquisition problems and other issues, including Government. The Company is looking at acquisitions, especially units above one lakh tonne capacity, located in the northern and eastern States, as its existing units are predominantly southern-based.
The acquisition will form part of the Rs 4,000-crore expansion plans lined up by ITC's paperboard and specialty papers division for the next two-to-three years to add a capacity of over four lakh tonne to its existing capacity of 5.7 lakh tonne annually through its existing four units.
(An article by DAS CAPITAL MANAGEMENT AND ADVISORS Pvt Ltd)