Blogs

Pressures faced by legacy carriers

Global air travel has immensely grown over the past decade and there are signs of continued expansion. The air connectivity was positively impacted by the increased growth of Middle East hub carriers. The International Air Transport Association (IATA) reported that revenues increased to the US $746 billion (2014) from the US $369 billion (2004).  Thus, besides competition within...

Rising automation and its impact on the IT industry

The advancements in technology transformed repetitive human processes into cost-effective tasks, rapidly performed by machines. The fundamental purpose of technology is to improve productivity, generate increased or better quality output and reduce cost. The increase in productivity not only increases the overall growth, but also influences living standards, consumption and income per capita....

Minerals and metals processing industry machinery, impact of volatility in metal prices

The mineral and metals processing industry machinery manufacturing companies supply a range of equipment and machinery such as heat exchangers, furnace, grinding mills to the mineral and metals processing companies. The former also provide installation and maintenance services over the life cycle of equipment and machinery to the mineral and metals processing industries. Thus, the performance...

Pricing war in the Indian telecom industry

The world is at dawn of a digital revolution. The emergence of disruptive technologies such as artificial intelligence, machine learning and Internet of Things (IoT) is fundamentally reshaping the human civilisation. Concurrently, its posing major challenges for businesses in terms of innovation, reskilling, development of new age products and solutions and most significantly survival in the...

Benchmarking operating structure for Brazil and the US ethanol manufacturers

The US and Brazil are the world’s largest ethanol fuel producer and together contribute around 85.1% of the global fuel ethanol production (2016). They are also the major fuel ethanol consumers globally due to the prominent use of ethanol, as a substitute for gasoline in these nations. The ethanol consumption accounts for roughly ~10% of total gasoline consumption in the US. Additionally,...

Cotton Yarn spinning, cost and revenue drivers vis-à-vis India and China

China is the world leader in yarn spinning with more than 250 million spindles and 35.38 million tonnes of production, and both cotton and polyester yarn being significant constituents. India is the 2 nd largest producer of yarn, with 50 million spindles and 0.75 million rotors. It produces 6.6 million tonnes of spun yarn, of which 61% is cotton yarn. The Indian government has been largely...

Rise of Chinese smartphones

The market for smartphones has grown extremely competitive as manufacturers vie for a share of hearts, minds and wallets of consumers. This was traditionally dominated by Apple and Samsung, but Chinese smartphones have grown significantly and commanded a substantial portion of the global market. 9 out of the top 12 smartphone makers are Chinese. They are driven by favourable policies of the...

Rise of e-waste in Asia

The world is increasingly becoming tech savvy, entering the digital age and this is a phase where kids can operate tablets better than the adults. Moreover, from the early 2000s not only millennials are living an electronic life but the EEE (Electrical and Electronic Equipment) has become prerequisites for the survival of an average person. But, what about the things that are discarded?...

Upsurge in online gaming in China and the success stories

In the contemporary world, China has attained a niche for online gaming with ‘role playing’ games acing the list of top grossing apps on Android and Apple store within the nation. The country has a netizen population of 700 million and the internet penetration was 51.7% in 2016 (Source: CNNIC Report 2016). This surpassed developed countries such as the US, Japan and UK in terms of gaming...

Brazil eyeing the leadership position in beef export

Beef accounts for 25% of the total meat consumption globally and hence, it is the third most widely consumed meat in the world. The beef production varies with season, domestic and international demand. The world beef production increased by a CAGR of 0.46% from 57.78 (million MT in 2006) to 60.48 (million MT in 2016), whereas world beef consumption increased by a CAGR of 0.3% from 56.99...

Poultry industry, outbreak of avian influenza in the US, a boon for Brazil

Poultry, which is also known as white meat is the second most consumed meat in the world accounting for 42.3% of the consumption globally. The total world poultry production increased at a CAGR of 3.2% from 65.41 (million MT in 2006) to 89.55 (million MT in 2016) and the world poultry consumption also increased in tandem at a CAGR of 3% from 65.28 (million MT in 2006) to 87.64 (million MT in...

Changing landscape for private universities in the US

Summary The for-profit institutions in the US are facing progressively tough legislative territory to operate. This is due to a slew of measures adopted by the US Department of Education (DoE) to weed out institutions providing sub-standard education as this results in high student loan debt against lower relative income. The situation resulted in high defaults on student loans and...

China’s pork production recovery a bane for the EU?

Pork, poultry and beef are the three most consumed meat types in the world. The global meat production has increased by a CAGR of 1.7% from 219 (million MT in 2006) to 258.2 (million MT in 2016), whereas global consumption has increased by a CAGR of 1.4% from 221.7 (million MT in 2006) to 255.1 (million MT in 2016).       Internationally, pork is also the most produced...

Analysing factors affecting gold prices in the last 5 years

Gold, the precious yellow metal has historically been one of the most sought commodities for investment and jewellery throughout the world. The metal is also considered as a hedge against inflation, an alternative asset during economic and political upheaval for individuals. In addition, corporates, as well as governments, store the metal as wealth and reserves. Nevertheless, the metal has not...

Impact of volatility in natural rubber and crude oil prices on tire manufacturing industry

The primary demand for tires arises from the automobile industry which accounts for 65-70% of the global tire demand. The remaining emanates from mining and construction equipment manufacturing, aviation and industrial sectors. The demand for tires can be categorised into demand from Original Equipment Manufacturer (OEM) and replacement market. The demand from OEM is a function of new...

Booming market for the aircraft leasing industry

The sizable portion of the growth in the aircraft leasing industry can be attributed directly to consistent demand from the emerging markets, rising per-capita GDP, growth in passenger traffic and increasing international tourist travel. Airlines lease aircraft to either reduce the financial burden associated with procuring aircraft or to provide flexibility to meet variations in demand. A...

Luxottica: How vertical integration has made it the world leader in eyewear

Luxottica with revenues of €8.8 billion clearly emerged as the market leader in Televisory’s earlier analysis through a blog on the eyewear industry . In addition, it emphasised on the operational and financial position of the selected key players. In this blog, Televisory analysed Luxottica’s vertically integrated business model, that enabled it to acquire more than 50% of the market...

NPA in the Indian banking industry

  In the past, few years, it has been observed that the Indian banks are incurring huge losses due to the mounting pressure of Non-Performing Asset (NPA loans where the default in payment exceeds 90 days). The rising crisis of NPA gained significance when the former RBI governor urged banks to clean their balance sheets and soon recognise NPA. A phenomenon which was earlier neglected....

Benchmarking market research firms

Presently, the market research industry is undergoing a rapid phase of transformation, this is led by changes in operating environment of businesses across the globe. Nowadays, businesses are competing with digital disruptive models, these are changing the competitive landscape and becoming truly global through an extension of their reach beyond geographies. In accordance with this, market...

Exponential growth of digital advertising

The world is fast moving towards digital advertising with the advent of technology. This has challenged older mediums such as print and TV advertising through an introduction of innovative strategies. The digital advertising surpassed TV in 2016 and is expected to grow at a CAGR of ~11% and reach $260 billion by 2020. The recent growth in digital advertising was largely driven by the mobile...

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...

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...

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...