EDITION 1 JUNE 2015 MDI

STRATEGIST WEEKLY NEWSLETTER

Power &
Oil & Gas Capital
Goods
Auto &
Auto BFSI
Ancillary
Aviation,
Shipping &
Logistics
IT, Media & Consumer
Goods &
Telecom
Retail
Pharmace Human
uticals Resource
Real Estate
&
Infrastructure

Metal &
Mining

SECTOR 1: AUTOMOBILES & AUTO ANCILLARIES

SECTOR 2: AVIATION, SHIPPING & LOGISTICS

TEAM STRATEGIST
strategist@mandevian.com
June 2015 AUTOMOBILES AND AUTO ANCILLARIES SHOBHIT GARG

Tata Motors partners with CEAT and
Paytm to offer loyalty benefits to its
customers
Special Focus
New ethanol emission norms for
vehicles; to improve reach of
alternate fuel vehicles

India to ink landmark motor pact with

Myanmar, Thailand Industry Talk

Government steps up to improve

roads, increase connectivity
₹

Strategist Voice

Domestic car sales up 7.7% in May; Govt. to introduce flexible-fuel policy

two-wheeler sales slump to cut dependence on imported fossil
fuels

Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON | Sector 1

 June, 2015 AVIATION, SHIPPING & LOGISTICS
India Post to raise tie-ups with etailers
sensing huge business in logistics
segment
IRCTC ties up with SpiceJet, GoAir to
offer flight tickets to waitlisted
passengers
Airbus to collaborate with Mahindra to
build choppers
Email: strategist@mdi.ac.in
SANTOSH & VEENU
Special Focus
IndiGo IPO
IndiGo, 1 of 2 Indian airlines making profit, filed for Rs
2500 cr IPO. InterGlobe has offered to issue fresh shares
worth Rs 1,272 crore, an equivalent amount can be raised
through sale of up to 3.01 crore shares by its existing
shareholders.
The listing, planned for the local stock exchanges, would
value InterGlobe Aviation at around $4 billion according to
bankers, and would be the biggest IPO in India since
Bharti Infratel Ltd listed in December 2012.
InterGlobe said it would use the IPO proceeds to pay off
the lease of existing aircraft, which would allow it to bring
in more planes. Most of IndiGo's expansion plans hinge
upon its 2011 order of 180 Airbus A320neo aircraft that
will be delivered starting from November this year through
to 2023.
Industry Talk
Indian LCC’s to roll out a slew of
customer-friendly services
SpiceJet's hand baggage-only-fares are being hailed as a
"smart" move by experts. Over the last month, low-cost carriers
in India, particularly IndiGo, AirAsia India and SpiceJet, have
rolled out a slew of services in a bid to differentiate themselves.
Market leader IndiGo has rolled out a prepaid-ticket coupon
. service called 6E Pass that is meant to give frequent flyers price
stability from fluctuating air ticket costs.
Each low cost carrier in a bid to create a loyal base of customers
has resorted to trying out various features to attract and retain
customers. The Indian market is highly competitive and price
conscious with customers demanding value for money. This has
forced many players to come up with flash sales and innovative
customer attracting fares/offers.
Strategist Voice
Huge untapped potential in Indian
Aviation sector
Less than 3 percent of our population flies. We have something
like one plane per 2 million populations whereas the US has
something like one plane per 50,000. Air travel is no longer a
luxury, it is a necessity, it is necessary for business, it is
necessary for tourism, for leisure. So, the market is certainly
there.
IndiGo has been posting profits. So, clearly there is also money
to be made. The industry has to mature and follow models that
are profitable. It is only when the regulatory regime is stable that
the industry can begin to mature. It is a huge market, there is a
huge untapped demand and it is about getting your efficiencies
in place, in planning your operations, in rationalising costs, you
can be successful.
STRATEGIST MDI GURGAON |
 Sudeshna Patnaik
pg14sudeshna_p@mandevian.com
9008084451
strategist@mandevian.com