Blogs

The US auto finance industry, understanding the reasons behind the dominance of captive OEM financiers

The growth in the auto finance market is dependent on auto sales supported by strong economic fundamentals such as rising incomes, well-structured labour market, favourable tax rates, low-interest rates, low fuel prices and investments in automotive factories and their capacity expansion. The auto sales in the US recorded a volume sales of more than 17 million units in 2015 and reached 17.91...

Asset light model in the restaurant industry, a comparative analysis of the impact and the performance of fast food and casual dining restaurants

The asset light model is a business strategy, where an organisation focus on growth with relatively low capital investment. This results in capital efficiency by focusing capital on core assets and result in the best return for investors. This is achieved through a reduction in spending on owning a network, infrastructure and manpower by outsourcing, licensing or asset sharing, etc. While an...

Downfall of Hanjin Shipping

The industry is marred by a slow growth in the world trade and overcapacity In the pre-recession period (i.e. before 2008-09), the world trade was booming and freight rates were peaking. But in late 2008 to 2010, the container trade declined under the reeling impact of global recession. There was a slow recovery in the container trade, which mainly comprised electronics, packed food...

Recovery still far away in the global graphite electrode manufacturing industry

The graphite electrodes find application mainly in the steel manufacturing through Electric Arc Furnace (EAF) route. EAF steel is mainly produced in EAFs by melting steel scrap through the generation of heat with the help of electricity. Graphite electrode act as an electrical conductor in the furnace owing to its high electrical and thermal conductivity and higher-temperature strength,...

Battle of the Low-Cost Carriers

The aviation industry has witnessed a mammoth growth in the last decade. IATA or the International Air Transport Association reported that revenues in the sector increased to $746 billion (2014) from $369 billion (2004). A significant portion of this growth can be attributed to the low-cost carrier segment, which is said to account for about 25% of the market share. LCCs or the “no-frills...

Ore export ban by the Philippines, is it economically beneficial?

Indonesia’s ban on unprocessed mineral export in 2012 turned out to be a boon for the Philippines as it swiftly replaced Indonesia as the top supplier of some of the raw mineral ores to China, specifically the nickel ore. China’s nickel ore import from the Philippines increased by 22% to ~36mn tonnes in 2014. However, soon (in Jul 2014) Philippine’s government realised that despite being the...

Global casino industry, performance over the years and recent trend analysis

The casino industry generates income from people who engage in gambling. It is due to the social and economic stigma attached to gambling in a casino that this is generally regarded as a negative activity in many countries and hence considered illegal to operate in certain geographies. Owing to these reasons, the casinos are mostly concentrated in and around tourist destinations and are...

Benchmarking rental yields-residential property developers

Rental yields are a function of gross rent charged and property prices, while the former is directly dependent on the income level of a country or a region, the latter is influenced by a variety of factors including public policy, demand-supply gap and speculative appreciation. Thus, this results in varied rental yields. Although high rental yields augur well for the real estate sector and...

Benchmarking commercial real estate, regional mall developers

Rental yield is one of the most important criteria for determining the success of a regional mall developer’s portfolio. A strong portfolio is one which continuously generates high rental income with consistent demand for space in a locality or region. Moreover, other factors such as occupancy rate, market value of the portfolio, types of tenants, lease expiration profile, tenant cost of...

Will ad revenue be enough to sustain online content companies?

Online content companies have mostly transformed the way people surf the internet, may it be Google for the search engine optimization (SEO), Facebook for networking, Alibaba for e-commerce or Netflix for entertainment. These corporations have collectively and consistently inculcated the convenience factor in the minds of their consumers, who would hardly compromise on surfing the internet...

Economic viability of solar energy

The global consumption of electricity is expected to grow 48% by 2040, as per the EIA. In order to meet this demand and simultaneously address the global challenges of clean energy, climate change and sustainable growth, there is an urgent need for economically effective renewable energy technologies. The cost-competitiveness of renewable power has increased and this was witnessed through...

Global jewellery retail industry and the growth of jewellery retail chains

  The annual global jewellery retail sales have grown at a CAGR of around 5% from USD 146 billion in 2005, this is expected to reach USD 250 billion in 2017. The top 5 regions for the jewellery retail sales are the US, China, India, Middle-East and Japan, together these account for 64% of the global jewellery retail sales. The jewellery retail industry is highly fragmented with...

US Fed delivers a hiked rate of 25 BPS, meets the expectations

The US Fed did it again! The Fed during its two-day monetary policy meeting, which ended on the 14 th  of December, 2016 raised the interest rates by 25 BPS in the range of 0.50%-0.75%, this was in line with the broader expectations of the markets, economists and analysts across the globe. Notably, this was the second-rate hike by the Fed in past decade following a similar increase in...

Impact of crude oil prices on cruise line operators’ performance

The cruise line industry grew globally at a CAGR of 8% during 2009-15 and raked over USD 39.0 bn of revenue in 2015 (Source: Statistica). The industry derives over 75% of the revenue from the sale of tickets to passengers, while other sources of revenue include onboard services like a casino, equipment rental, and retail concessions. Onboarding expenses (food, concessions, etc.) are a...

Benchmarking the cement industry in India and China

Cement production is mostly localised and the industry is typically driven by a surge in construction activity and infrastructure development projects globally. An advancement in technology, urbanisation, high disposable incomes and a rise in the number of nuclear families have resulted in the growth of demand for houses and supporting infrastructure, this has led to an increase in demand for...

Fed’s December policy meeting, is another rate hike inevitable?

The US Fed kept the benchmark Fed fund rate in the range of 0.25%-0.50%, this was announced in the monetary policy meeting in September 2016. The agency stated through the policy statement and a press conference that the economy will continue to see the growth. The central bank moderately reduced its expectations on the long-term economic and inflation growth, but it was positive on the...

An analysis of the key players and their strategies in the passenger car rental industry

The car rental industry not only offers mobility and convenience to those who do not possess a car, but is a lucrative commuting option for business and leisure travellers. The economic development, a rise in per capita income and rapid transportation across the globe have contributed to a growth in the industry. The sector is estimated to grow at a CAGR of 5.6% during 2016-21 (Source:...

OPEC confirms Algeria Accord, oil markets rally globally

The oil market witnessed a significant demand-supply imbalance during the past 2 years and this led to a sharp decline in the global prices. The prices for the major international benchmark, ICE Brent declined from its peak of ~$100 per barrel (in the mid-2014) to the intermittent lows of around ~$35 per barrel (in the first half of 2016). The surplus situation was mainly due to a persistent...

GPS device manufacturers, mapping the way for a healthy market share

The GPS (Global Positioning System) industry has grown in the civil market over the years, whereas initially it was only used for military purposes. In today’s world, various industries around the globe have broadened the use of GPS. The GPS market generated $9.1 billion in 2011 and is expected to generate $26.36 billion by the end of 2016, registering a growth at a CAGR of 23.7%. The demand...

Falling crude oil prices and its impact on the synthetic rubber industry

Rubber is one of the most widely consumed commodities in the economy. This is used in the tyre industry, the manufacturing sector (belting, etc.) and is also widely needed in the healthcare sector. Additionally, among all the segments, tyre accounts for 3/4 th of the total rubber consumption globally. The rubber industry as a whole is sub-divided into two divisions, natural rubber (made from...

Failure of Amazon in China, an analysis

E-commerce market in China Online consumer product retailers in China Performance of Amazon in China   Amazon is a global e-commerce player selling a wide...

An analysis of Malaysian rubber glove industry

How big is the international rubber gloves market? Reasons behind the healthy and steady growth Malaysia’s role in the industry Why are companies struggling for stable...

Tire manufacturing industry, analysing the cost and margin trends

The global market for tire manufacturing stands at $180 billion. Michelin anticipates the long-term demand to rise at the rate of 5 to 10% a year in developing markets and 1 to 2% a year in mature...

Can lithium-ion anode demand for needle coke reduce availability for electrode players?

What is needle coke? Uses of needle coke Lithium-ion battery manufacturers demand needle coke   Needle coke? Needle coke is a specialised form of petroleum coke...

Blockchain, an emerging concept, a disruptive technology (Part 1)

What is blockchain? How is blockchain revolutionary? Cryptocurrency, the new money ICOs, the new way of raising money Summary Blockchain is a software architecture...

Sri Lankan economic and political crisis

Sri Lanka’s latest political crisis, who governs the nation? Poor economic indicators adding to the nation’s woes   Sri Lanka is currently embroiled in a political crisis,...

Rapidly growing Indian online food delivery industry and its unrealised profits

Evolution of online food delivery industry in India Geographical penetration and scope for expansion Key players and their zeal to balance revenue and costs   Online...

Is the radio broadcasting industry in the U.S. dying? An analysis

Radio, the most powerful medium of reach in the U.S. Why the industry is moving at a slow pace? Radio’s health is still sound, will it continue in the long-term?   ...

Rice industry outlook 2018

Major rice producers and consumers Global rice trade Factors dominating the trade   Rice is the 3 rd largest produced agricultural commodity in the world, after...

Carbon black industry, strong potential for supernormal profitability?

What is carbon black? Its uses Impact of the environmental curbs in China   What is carbon black? Carbon black is a fine carbon powder and it is a disorderly...

Baidu’s Apollo, the underdog of autonomous driving platform

Overview of the autonomous vehicle sector in the global automobile industry Search giant Baidu’s entry into the autonomous driving space Baidu’s approach in becoming a front-runner...

Rise of Ant Financial, will the success story continue?

What is Ant Financial? Journey to become king of unicorn Will regulatory curbs hinder its success journey?    Ant Financial, an affiliate and integral part...

Indian wood panel industry, growth drivers and present trends

Current market scenario in the Indian plywood industry Growth in the housing sector and rapid urbanisation to provide the boost GST rationalization to reduce price difference...

What’s in store for India’s first commercial REIT as it hit the market with Blackstone teaming up with Embassy Group

Overview of the partnership and assets of Embassy Office Parks Comparison of the Indian commercial office market space with other developed markets Road ahead for India’s...

Battle for the textile and apparel industry in Southeast Asia

The reasons for China’s decreasing presence in the industry Initiatives by the governments in Southeast Asia to boost the textile trade Vietnam and Bangladesh’s quest to conquer...

OYO Rooms, an Indian start-up to enter Japan

Growth story of OYO Rooms in India Business model of OYO Rooms Analysis of strategy to enter Japan   OYO Rooms, the Indian start-up has decided to venture in Japan...

Housing finance market in India. Is affordable housing driving the growth?

Overview of the housing finance sector in India Key players dominating the segment and their dynamics Factors driving aggressive demand for housing   The housing...

Unnoticed growth of the media and entertainment industry in India

Overall industry brief Growth of the M&E industry and its segments Major supporting elements of this growth   Media and Entertainment (M&E) is a very wide industry...

German economy, will the slide continue?

Weakening global industrial demand weighs on Germany’s manufacturing sector Inflation and business climate take a hit with broader signs continuing to be subdued Future...

SAP’s acquisition of Qualtrics, a costly affair or a strategic move?

History and evolution of SAP and ERP. Will experience measurement add value to SAP ERP?   On November 12, 2018 ERP software giant SAP announced an $8 billion acquisition...