Blogs

Analysing growth strategies of key LED manufacturers

The LED manufacturing is a perfect example of an industry where the government, industry participants and consumers came together to create an energy efficient option which proved to be competitive and helped reduce greenhouse emissions. The lighting market was initially dominated by incandescent and linear fluorescent lamps. However, the more efficient but relatively expensive LED has quickly...

Ambulatory surgery centers, an alternative to hospital outpatient departments?

Ambulatory surgery centers (ASCs) are health care facilities that offer short-stay surgical and emergency procedures to patients, who do not require an overnight stay in a hospital. ASCs came into existence around four decades ago in Arizona (USA) by two physicians as an alternative to overcrowded and costly HOPDs (Hospital Outpatient Departments) at hospitals marred by slow operation room...

Footwear marathon, an analysis of operations and returns

The global footwear market is expected to reach US$ 350 billion in revenues by 2020. Presently, the market size is pegged and estimated at US$ 260 billion, with c. 35% or approx. US$ 92 billion of the market share, attributed to Athletic Footwear (A.F). The remaining 65% of the market share is claimed by Non-Athletic Footwear (N.A.F). However, the athletic footwear industry is expected to grow...

Eyewear manufacturing industry, a study of present operational scenario and future potential

The global eyewear market, which is primarily driven by demographics, lifestyle and the ageing population, stood at USD 102.7 billion in 2015 and is expected to reach USD 141 billion by 2020. Spectacles hold a major share in the eyewear market with over 55% of the total volumes. However, the market for contact lenses and sunglasses is expected to grow substantially at a CAGR of 12% and 9%...

Potash market facing a glut

Potash is one of the three main nutrients in the global fertiliser industry and 90% of the produced potash is consumed as a fertiliser in agricultural crops such as wheat, rice, corn, oilseed and sugar. The global demand for potash has been increasing owing to a rise in demand from China, India and Latin American nations since they lack indigenous production. But, this increase has led to a...

Household electric appliance manufacturing, the key players and their vigour to balance costs and returns

The household electric appliance is one of the most important consumer-centric household industry. The rise in the per capita and personal disposable income has led to an increase in the consumption of household appliances and this is forecasted to reach around USD 345 billion by 2020. The revenue generation in the industry from developed economies has, however, seen a dip in the past years...

PGM mining, the impact on operation amidst long-standing labour issues in South Africa

The last few years were not very good for most precious and base metals since prices fell due to weak demand. Additionally, there was an excess supply of most metals globally. Among the precious metals space, platinum too recorded a decline with its prices dipping from the highs of $1700 in 2010 to the lows of $1000 during 2016. A decline in end product price dragged the margins of major...

Healthcare REIT sector: key developments in context of the US

Healthcare REITs are real estate investment trusts which own healthcare-related properties, majorly Senior Housing Communities (SHC), Skilled Nursing Facilities (SNF), Medical Office Buildings (MOB) and Hospitals, etc. They earn rental revenue from leasing these properties to health care and related organisations. The healthcare REIT like any other REIT earn a tax-free income, in return, they...

What lies in the future for Ingenico and Verifone with the rise of regional POS manufacturers and mobile wallets?

The market for payment processing terminals manufacturing and payment processing has been globally duopolistic until recently. This was dominated by the two companies established in 1980’s, Verifone, based out of the US and Ingenico, based out of France. Traditionally, the industry was marked by entry barriers in the form of a high initial capital requirement, a higher research and development...

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...

Slack set out to kill E-mail

Started as a side project for internal use in a gaming company High revenue growth with recurring revenues Went Public by offering shares through the Direct Public Offering ...

Will the Big Bang merger drive, of Indian Public Sector banks, provide the required impetus to the slowing economy?

India’s Government announces plans to merge 10 of the country’s public sector banks Probable impact of the mergers   India’s Finance Minister, Nirmala Sitharaman,...

Is Mothercare on the verge of collapse?

History of Mothercare What went wrong? Company moved into administration   Mothercare, an iconic brand for babies, children and parents to be, went into...

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...

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...