Disinvestment & Industry Analysis

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Disinvestment andIndustry Analysis


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Concept of Disinvestment

The action of an organization or government selling liquidating an asset or subsidiary

It is also referred to as divestment or divestiture.

Disinvestment typically refers to sale from the goverpartly or fully of a government!o"ned enterprise


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Causes for Disinvestment in Negative rate of return on capital employed

Ine&cient #$%s had become and "ere continuing to on the Governments resources

The national gross domestic productand gross nsavings "ere also getting adversely aected by lofrom #$%s.


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'actors responsible for lo" pro(ts in th

#rice policy of public sector underta)ings

%nder*utilisation of capacity

#roblems related to planning and construction of pro

#roblems of labour personnel and management

,ac) of autonomy


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-ain ob+ectives of disinvestmTo reduce the (nancial burden on the overnment

To improve public (nances

To introduce competition and mar)et discipline

To fund gro"th

To encourage "ider share of o"nership


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/rguments against Disinvestm

Considerable #$% disinvestment "ould squeeze this impsource of revenue for the overnment

%sing funds made available from disinvestment to bridge de(cit is an unhealthy and a short term practice. It is said tequivalent of selling 0family silver0 to meet short term morequirements

$ome employees of #$%s "ould lose +obs

It "ould increase private monopolies


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Industry Analysi


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Tetiles Industry


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Te1tilesThe te1tile industry continues to be the second largest employment generating sector in India after agr

!a"or products#

!an !ade $i%ers#These includes manufacturing of clothes using (ber or (lament synthetic yarns. It is proloom factories. They account for the largest sector of the te1tile production in India. This sector has a share of production and provides employment to about 5.6 million people.

The &otton 'ector#It is the second most developed sector in the Indian Te1tile industries. It provides employpeople but its productions and employment is seasonaldepending upon the seasonal nature of the product

The (andloom 'ector# It is "ell developed and is mainly dependent on the $elf 7elp roups for their funds. of the total cloth produced in India.

The )oolen 'ector#India is the one largest producer of the "ool in the "orld. India also produces 8.64 of th

The *ute 'ector#The +ute or the golden (ber in India is mainly produced in the :astern states of India li)e /ssIndia is the largest producer of +ute in the "orld.

The 'ericulture and 'il+ 'ector# India is the 3nd largest producer of sil) in the "orld. India produces 864 o-ulberry :ri Tasar and -uga are the main types of sil) produced in the country. It is a labor!intensive sector.


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#roblems of Te1tile Industrylobal Competition

Technology upgradataion as ma+or semi s)illed and u"or)ers are absorbed= labour intensive

>a" -aterials * seasonal in nature


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>oad /head#romote training facilitiesTechnology transfers

#rivate public partnership

-ar)eting and visibility of products * e1po e1hibition

-ulti!utility of products * +ute bags


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INDIAN ,-,&T./NI&IND0'T.1


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INDIAN ,-,&T./NI& IND0'ize of the Industry# Indian electronics industry to

stands at %$ ? 3@ billion

Geographical distri%ution# /ll the ma+or -etropolin the India

/utput per annum# It is gro"ing at over 3@4 per a


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The demand for electronics is e1pected tfuelled by the gro"th of

Telecommunications A3@B million subscribers by the years

#Cs and oteboo)s A@ million every year


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Top leading &ompanies2ideo 3ro"ectorsE #hil $ystems Feltron #ro+ectors

$amrat Gideo Gision

&olour TelevisionE , :lectronics #hilips $onyH $an$amsung


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-atest developmentsThe Indian ,lectronic industry constitutes less than 56of the

Today India remains a ma+or importer of electronic materials com(nished equipment mainly from &hina

Indiais gro"ing up to be one of the %iggest mar+ets for electroinstrumentations

-ulti national corporations provide gro"ing electronics mar)et to costs

To attract foreign investment the government has adopted Chines:conomic Jones "ith the aim to provide islands of e1cellence "heinfrastructure is "orld standard


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$!&G IND0'T.1


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'-CThe fast moving consumer goods A'-C segment is the fourth lar

in the Indian economy

$ood products is the leading segment accounting for 59 per cenoverall mar)et. 3ersonal care A33 per cent and fa%ric care A83 come ne1t in terms of mar)et share

'-C goods are popularly )no"n as consumer pac+aged goodsthis category include all consumables Aother than groceries=pulses%uy at regular intervals. The most common in the list are toilet detergents shampoos toothpaste shaving products shoe polish foodstuK and household accessories and e1tends to certain electrThese items are meant for daily or frequent consumptionand return.


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0r%an trends;ith rise in disposable incomes mid! and high!incom

consumers in urban areas have shifted their purchasfrom essential to premium products.

In response (rms have started enhancing their prem

products portfolio.

Indian and multinational '-C players are leveragina strategic sourcing hub for cost!competitive productdevelopment and manufacturing to cater to internati

mar)ets.


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Top &ompaniesThe top ten India $!&G %rands are#

8.7industan %nilever ,td.3. ITC AIndian Tobacco Company9. estlL India5. C--' A/-%,

@. Dabur India2. /sian #aints AIndiaM. Cadbury India6.


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.oad Ahead

'-C brands "ould need to focus on .8D and innovation as a mgro"th. Companies that continue to do "ell "ould be the ones that hthat promotes using customer insights to create either the ne1t gproducts or in some cases ne" product categories.

ne area that "e see global and local '-C brands investing more inand 9ellness. 7ealth and "ellness is a mega trend shaping cons

preferences and shopping habits and '-C brands are listening. ,eand Indian food and beverage brands have embraced this trend and on creating ne" emerging brands in health and "ellness.

/ccording to the #"C!'ICCI report ;inds of change 3B89E the "ellnenutrition foods beverages and supplements are gro"ing at 8B to 834


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3harmaceuticalIND0'T.1


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#harmaceuticals

India is among the top si1 global pharmaceutical producers

/ppro1imately MB per cent of the patients in developing coureceive Indian medicines through s li)e The Clinton 'ouO -elinda ates 'oundation Doctors ;ithout


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7ousehold $pend O ro"th in >ural Ind

The overnment of India is committed to setting up robust hedelivery mechanisms.

Due to increasing population and income levels demand for drugs in India is e1pected to reach %$? 6 billion by 3B8@.

:1penditure on pharmaceuticals is li)ely to increase to over 5the total spending on healthcare by households by 3B8@.

;ith MB per cent of India0s population residing in rural mar)etpharma companies are investing in the distribution net"or) i


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overnments Initiatives

The policies of the Government of India are aime

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Disinvestment & Industry Analysis

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