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Welcome to the August issue of ValueNotes Connect.
All economies have struggled with how best to deal with declining state-owned companies. In India, the problems are particularly acute. Per se, government ownership need not be a negative. However, public sector units tend to lose their competitive edge over time, for a variety of reasons. Many are making losses and fast losing market share. Who is paying for all this? Taxpayers! There are a thousand better alternatives than funding decrepit PSUs. Is privatization the answer? Well… that depends on what you mean by privatization.
The first quarter results have been a mixed bag so far. Yet, the Indian stock markets have reached an all-time high. While this is an ideal scenario, things don’t seem to be moving as anticipated. The Index of Industrial Production grew at its slowest pace since February; credit growth plunged to a six-decade low; fresh investments by the corporate sector hit a new low. The future will depend on the investments and performance of the capital goods sector, a harbinger of economy growth. Since the last two years, the sector has not witnessed any growth – order books are mostly stagnant or, at times, declining. One has to look at green shoots – not in the historical capital-guzzling sectors, but newer ones.
Do read about how we helped a provider of mining and construction equipment gain a competitive advantage over its peers.
As always, we hope you enjoy reading our newsletter, and we look forward to your comments.
Best regards.
Publicization not Privatization: The solution for India’s public sector
by Arun Jethmalani
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All economies have struggled with how best to deal with declining state-owned companies. In India, the problems are particularly acute. Per se, government ownership need not be a negative. However, public sector units tend to lose their competitive edge over time, for a variety of reasons. One of these is that most PSUs were set up at a specific time in history, to solve a specific problem – or provide products and services that nobody else could. Decades later, there is no need for governments to make steel or watches or provide telephony. |
Capital goods industry revival – Are any green shoots visible?
by Rathin Shah
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The first quarter results have been a mixed bag so far. Yet, the Indian stock markets have reached an all-time high. While this is an ideal scenario, things don’t seem to be moving as anticipated. The Index of Industrial Production grew at its slowest pace since February; credit growth plunged to a six-decade low; fresh investments by the corporate sector hit a new low. The future will depend on the investments and performance of the capital goods sector, a harbinger of economy growth. |
- Case study: Regular market intelligence helps engineering MNC stay ahead of its peers
Some client problems we have solved:
- Study on the demand for oil & gas shipping vessels
- Customer intelligence for a pneumatic & fluid control products manufacturer
- Market sizing study of positive displacement blowers in India
- Technology forecasting report on the metal cutting & metal forming industries
- Market entry strategy for a provider of thermal management products & services
- Market sizing of column pipes in western India
- FnBnews.com: Bread sector valued at $0.53 billion in 2015; growing at nine per cent
| Do get in touch with us on email – research@valuenotes.co.in Or leave us a message using our online form |
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