Aviation Industry in India

Overview of Airlines industry in India

The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. At present, private airlines account for around 75% portion of the domestic aviation market.

The 9th largest aviation market in the world is India. Taking the help of the statistics from the Ministry of Civil Aviation, approximately 29.8 million passengers traveled to/from India in 2008, showing a surge of 30% from 2007. The prediction stated that international passengers will touch 50 million by 2015. More opportunities in the aviation industry in India are likely to make way for about 69 foreign airlines from 49 countries.

Growth of Indian Aviation industry

The Indian Civil Aviation market grew at a CAGR of 18%, being valued round US$ 5.6 billion in 2008. Further statistics revealed that the air traffic in August 2009 was a double digit figure. The domestic airliners flew 3.67 million passengers in August 2009, as against 2.92 million in the corresponding period of 2007, up by 26%. The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestic traffic will go up by 25% to 30% till 2010 along with a surge in the international traffic by 15%. There would be more than 100 million passengers by 2010. Then again by 2020, Indian airports will in all probability handle over 100 million passengers every year. The investment plans to the tune of US$ 9 billion has been made by the Aviation Ministry for modernizing the existing airports by 2010.

In terms of domestic passengers' volume, US have always been the leader with followers in the league like China, Japan and India. The number of domestic flights went up by 69% from 2005 to 2008, with the domestic aviation sector growing at 9-10%.

Market share of key players in the Indian aviation sector

Name of the players	Market Share
Kingfisher Airlines and Kingfisher Red (previously Air Deccan)	28%
Jet Airways and Jet Lite (previously Air Sahara)	25%
Air India and Indian (previously Indian Airlines)	16%
IndiGo	14%
SpiceJet	12%
GoAir	3%
Paramount Airways	2%
MDLR Airlines	0.004%

Future of Airlines industry in India

The challenges of the Indian aviation industry are cited below:

• Passenger traffic is estimated to grow at a CAGR of over 15% in the coming few years.
• The Ministry of Civil Aviation would handle around 280 million passengers by 2020.
• US$ 110 billion investment is envisaged till 2020 with US$ 80 billion solely for new aircraft and US$ 30 billion for developing the airport infrastructure.

Automobile Industry in India

Industry background

Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants.

Every other day, we have been hearing about some new launches, some low cost cars – all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs.

Potential of the Automobile industry

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General Motors.

Turnover of Automobile Manufacturers(In USD Million)
Year	In USD Million
2002-03	14,880
2003-04	16,544
2004-05	20,896
2005-06	27,011
2006-07	34,285

The figures show that the automobile sector in India has been growing robustly. The market shares of the different types of vehicles will clearly depict the demand pattern in this sector.

Domestic Market Share for 2008-09
Passenger Vehicles	15.96%
Commercial Vehicles	3.95%
Three Wheelers	3.6%
Two Wheelers	76.49%

Automobile Companies

• Audi
• Bajaj Auto
• BMW
• Chevrolet
• DaimlerChrysler (Mercedes)
• Fiat
• Ford
• General Motors
• Hindustan Motors
• New Car Launches

• Hero Honda Motors
• Hyundai Motors
• Mahindra & Mahindra
• Maruti Udyog
• San Motors
• Skoda
• Tata Motors
• Yamaha Motors
• Top Automobile Companies

Notable Multi-national automobile manufacturers

Locally manufactured automobiles of MNCs

• Audi: A4, A6.
• BMW: 3 Series, 5 Series.
• Chevrolet: Spark, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
• Fiat: Palio, Grande Punto, Linea.
• Ford: Ikon, Fiesta, Fusion, Endeavour
• Honda: Jazz, City, Civic, Accord.
• Hyundai: Santro, i10, Getz, i20, Accent, Verna, Sonata.
• Mercedes-Benz: C-Class, E-Class
• Mitsubishi: Lancer, Lancer Cedia.
• Renault: Logan
• škoda: Fabia, Octavia, Laura.
• Toyota: Corolla, Innova, Fortuner
• Volkswagen: Jetta, Passat.

Cars sold in India as Completely Built Units

• Audi: A8, TT, R8, Q5, Q7.
• Bentley: Arnage, Continental GT, Continental Flying Spur, Arnage.
• BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.
• Chevrolet: Captiva
• Fiat: 500.
• Honda: Civic Hybrid, CR-V.
• Hyundai: Tucson.
• Jaguar: XF, XK.
• Lamborghini: Gallardo, Murciélago.
• Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.
• Maybach: 57 and 62.
• Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class, Viano.
• Mitsubishi: Pajero, Montero, Outlander.
• Nissan: Teana, X-Trail.
• Porsche: 911, Boxter, Panamera, Cayman, Cayenne.
• Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.
• škoda: Superb.
• Suzuki: Grand Vitara.
• Toyota: Camry, Land Cruiser, Land Cruiser Prado.
• Volkswagen: Touareg.
• Volvo: S80, XC90.

Aluminium Industry in India

Aluminium Industry in India is a highly concentrated industry with the top 5 companies constituting the majority of the country's production. With the growing demand of aluminium in India, the Indian aluminium industry is also growing at an enviable pace. In fact, the production of aluminium in India is currently outpacing the demand.

Though India's per capita consumption of aluminium stands too low (under 1 kg) comparing to the per capita consumptions of other countries like US & Europe (range from 25 to 30 kgs), Japan (15 kgs), Taiwan (10 kgs) and China (3 kgs), the demand is growing gradually. In India, the industries that require aluminium most include power (44%), consumer durables, transportation (10-12%), construction (17%) and packaging etc.

The Background

Though the existence of Aluminium was first established in the year 1808, it took almost 46 years to make its production commercially viable. The research work of several years resulted in extracting the aluminium from the ore. Aluminium is third most available element in the earth constituting almost 7.3% by mass. Currently it is also the second most used metal in the world after steel. Due to the consistent growth of Indian economy at a rate of 8%, the demand for metals, used for various sectors, is also on the higher side. As a result, the Indian aluminium industry is also growing consistently. In FY09, the aluminium industry in India saw a growth of about 9%.

The production of aluminium started in India in 1938 when the Aluminum Corporation of India's plant was commissioned. The plant which was set up with a financial and technical collaboration with Alcan, Canada had a capacity of producing 2,500 ton per annum. Hindustan Aluminum Corporation (Hindalco) was set up in UP in the year 1959; it had a capacity of producing 20,000 ton per annum. In 1965, a public sector enterprise Malco which had a capacity of 10,000 ton per annum was commissioned; by 1987, National Aluminium Company (NALCO) was commissioned to produce aluminium. It had a capacity of producing 0.218 million ton.

During the 1970s, the government started regulating and controlling the Indian aluminium industry. Restrictions in entry and price distribution controls were quite common in the Indian aluminium sector. Aluminium Control Order was implemented where the aluminium producers had to sell 50% of their products for electrical usages. However, in 1989, the order was removed as the government decontrolling was revoked. With de-licensing of industry in 1991, the liberal import of technologies and capital goods was started. The liberalization resulted in a growth rate of 12% of the industry, comparing to the growth rate of 6% during the 1980.

Aluminium Production in India

India is world's fifth largest aluminium producer with an aluminium production competence of around 2.7 million tones, accounting almost 5% of the total aluminium production in the world. India is also a huge reservoir of Bauxite with a Bauxite reserve of 3 billion tones.

The Production

India lies at the eighth position in the list of leading primary aluminium producers in the world. India saw a significant growth in aluminium production in the past five years. In 2006-07, the production target of aluminium in India laid by the Ministry of Mines, Government of India was 1,153 KT, which was augmented to 1,237 KT in the next year (2007-08). Due to the growing demand from the construction, electrical, automobiles and packaging industry, the production of aluminium also hiked up. In FY 09, the total aluminium production in India was around 1.35 tonnes.

The Consumption

After a stagnant consumption of primary aluminium in India from the end of 1990s to 2002 (when the consumptions were between 500 – 600 KT), it started rising sharply since 2002. The consumption reached at 1,080 KT in 2006. The consumption of aluminium in India is dominated by the industries like power, infrastructure, and transportation etc.

The Major Players

The Indian aluminium industry is dominated by four or five companies that constitute the majority of India's aluminium production. Following are the major players in the Indian aluminium industry:

• Hindustan Aluminium Company (HINDALCO)
• National Aluminium Company (NALCO)
• Bharat Aluminium Company (BALCO)
• MALCO
• INDAL

HINDALCO: Hindalco is the biggest player in the aluminium industry in India with around 39% of market share. An Aditya Birla Group flagship company, Hindalco has its aluminium plant at Renukoot in Uttar Pradesh. It has various aluminium products with a market share of 42% in primary aluminium, 20% in extrusions 63% in rolled products, 31% in wheels and 44% in foils.

Sterlite Industries: The aluminium business of Sterlite Industries Limited comprises of two Indian aluminium giants – BALCO and MALCO. While BALCO is a partially integrated, MALCO is a fully integrated producer of aluminium. Sterlite has got a market share of around 32%.

NALCO: It is also one of the leading aluminium producers in India. Government of India has a stake of 87.15% in this company. Its aluminium refinery is located at Damanjodi. It also has a smelter located at Angul, Orissa. Currently, NALCO is concentrating on a capex programme to increase its production from 345,000 tonnes to 460,000 tonnes.