Sectoral Analysis

Manufacturing Sector
 World Scenario of Manufacturing Industry

Global 15 Average Annual Growth Rate of MVA Leading manufacturing economies share in world MVA
manufacturing 30
China ranked
10
value added 25 either first or
second
20
5
reached an all- 15

time high of 0 10
2005
2010
worldwide in
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
19 out of 22
5
$9,228 billion -5 0 2015

in 2014 -10
manufacturing
industries
-15

Manufacturing is World MVA, by country group and worldwide

6000 Regional Shares in total world
a key driving MVA, 2014
force of overall
5000 The Asia and
Industrialized Economies Africa,
economic
4000
Latin 1.6% Pacific region
growth of 3000 Americ is the biggest
developing and 2000 a, Asia & manufacturing
World North
emerging 1000 5.5% Pacific, region in the
Developing & Emerging Industrial Economies
Americ Europe
industrial 0 44.6% world
2005 2010 2014 a, ,
economies
20.9% 27.5%

Over 19902012, manufacturing value Share of world manufacturing

Dominant global manufacturing
added increased 86 percent, more than employment in the global total
industries : food and beverages,
twice the 39 percent growth in energy decreased from 14.4 percent to
chemicals and chemical products
consumption 11.5 percent between 1991 and 2014
and machinery and equipment
|

Major
3rd
Largest Manufacturing
Players
company by revenue
Employs around 370,000
people
Worlds largest television
manufacturer since 2006
Major manufacturer of
electronic components
such as lithium-ion
batteries, semiconductors, c
hips, flash
memory and hard
drive devices for clients
such as Apple
, Sony, HTC and Nokia

The Boeing Company is an American multinational corporation that

designs, manufactures, and sells airplanes ,rotorcraft , rockets, and satellites
worldwide.
The
. company also provides
leasing and product support
services. Boeing is among the
largest global aircraft
manufacturers, is the second-
largest defense contractor in the
world based on 2013
revenue, and is the largest
exporter in the United States by
dollar value.
 India envisages ManufacturingPotential of 1 Trillion $ Industry, Manufacturing
Manufacturing constitutes 16%
MAKE IN INDIA to contribute 25-30% of our GDP Could create 90 Million
of Indias GDP Currently
by 2025 Domestic Jobs Potential

RETURN OF INVESTED CAPITAL VS

WEIGHTED AVERAGE COST Where we can focus on?
ROIC less than WACC ROIC greater than WACC
Unskilled Labour India market are huge barrier
CONSTRUCTION MATERIALS 24 76 has a working to productivity, 60 Billion
population of 75% out of $ committed capital
CAPITAL GOODS 41 59
which only 600 million awaits environmental
PHARMA 46 54 have acquired education approval
till middle school Labour Laws Stringent
CHEMICALS 48 52 Lower Productivity labour laws make it
ENERGY 54 46 Manufacturing in India difficult to restructure for
Area of functions approximately the company
Concern
METALS 54 46 at 1/5th of US Poor Infrastructure Saps
productivity Industrial productivity,
FOOD & BEVERAGES 56 44
Agriculture supports leaves the country at a
AUTO 59 41 60% of working huge disadvantage
population but compared to others
PAPER PRODUCTS 72 28
contributes only 22% to
UTILITIES 74 26 the GDP
McKinsey Land Market Barriers -McKinsey Report
Report TEXTILE 79 21 Distortions in the land
National investment and manufacturing zones will substantially add and increase the manufacturing output in the country

CURRENT POLICIES
"India is now the most
open economy in the world
for foreign direct
Will result in a investment," Prime
Administrative New approach likely to
decisions aimed at ease make government paradigm shift and Minister Narendra Modi
of doing business goes facilitator of the will increase the share said, hailing the new rules
a long way in business and not only of manufacturing in
streamlining as a regulator but also GDP from 16% to 25%
cumbersome changes Indias image by 2022
procedures and thereby from a red tape country Status as the world's
increasing to red carpet country
fastest-growing major
manufacturing ventures
economy amid global
uncertainty

100 % FDI for important

sectors like defence, civil FDI inflows rose to $55.46 billion National investment and
aviation manufacturing zones will
in FY16 from $36.04 billion in
,pharmaceuticals, substantially add and increase the
FY14, reflecting India's growing manufacturing output in the
opening them up for
complete foreign attractiveness as an investment country
ownership destination
THANK YOU