Beacon newsletter for october 2013 from simcon club

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October Edition of BEACON(BE-A-CONsultant) (Monthly Newsletter from SIMCON).
1. Guest Lecture By Mr. V.S Sarangapani
2. Automobile Industry Analysis
3. Consulting World News
4. October quiz

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Beacon newsletter for october 2013 from simcon club

  1. 1. Issue: 12 OCTOBER 2013 Sydenham Institute of Management Studies, Research and Entrepreneurship Education B E A C O N : BE-A-CONSULTANT A MONTHLY NEWSLETTER FROM SIMCON - SIMSREE CONSULTING CLUB 1.GUEST LECTURE BY MR. V. SARANGAPANI 23rd October 2013 SIMCON (SIMSREE Consulting Club) blazed its trail by helping students to get a better perspective of management consulting as a career option, its opportunities and expectations. INDEX GUEST LECTURE BY MR. V. SARANGAPANI 1 AUTOMOBILE INDUSTRY ANALYSIS 2 CONSULTING WORLD NEWS 5 OCTOBER QUIZ 6 FEATURED ARTICLE PAGE 2 ABOUT ON AUTOMOBILE INDUST RY ANALYSIS The guest for the lecture was Mr. V Sarangapani, Executive Director of Bombay Management Association (BMA) and an advisor for Micro Technologies (India). He has over 36 years of experience which includes 28 years in TCS. With an experience of over 18 years in management consulting, he is one of the best persons to inspire students. The lecture opened new dimensions for students aspiring to be consultants. Mr. V. Sarangapani addressing the students Mr. Sarangapani started the lecture by talking about his journey in consulting. He mentioned about his learnings from clients, situations and experiences and also emphasized on the need of continuous learning in the consulting field. The most important thing he learnt from his experience is: “When any new technology comes in, you should absorb it without resistance and use it to reduce efforts”. When talking about the history of consulting, he cited Chanakya as an ideal consultant. According to Mr. Sarangapani, an organization needs a consultant to bring in outside expertise and have a third person’s view. He also mentioned five important skills required for success in consulting. They include analytical thinking, ability to conclude with pros and cons, timeliness, ability to learn and most importantly openness to your mistakes and learning through those. He took us through consulting process and steps. This helped us to understand do’s and don’ts of the consulting field. The most effective part of his lecture was the relevant and engaging examples for every situation and fact which he mentioned. Mail to: simcon.simsree@gmail.com Mr. Sarangapani also told us about BMA and how it is working for emerging corporates. In the questionanswer session, he briefed about various areas of consulting and difference between those. Lastly, he advised upcoming consultants: “Experience life and situations. Use the opportunities and give your best of it. Change according to situation. Don’t get stuck to core competence only”. It was indeed a great start for SIMCON team 2013-15 and we thank Mr. V Sarangapani for making it successful.
  2. 2. Page 2: BEACON Automobile Industry Analysis The automobile industry has emerged as a sunrise sector in the Indian economy. It embarked on a new journey in 1991 with de-licensing of the sector and subsequently opening up for 100% FDI through the automatic route. The automobiles production has increased at a CAGR of 13.2% over FY05-12 while the automobiles export volumes increased at a CAGR of 22.4% over the same period. The Ministry of Heavy Industries & Public Enterprises has come up with a Automotive Mission Plan 2006-2016 that envisages the automobiles sector to be worth USD 145 billion in 2016 contributing around 10% to the GDP and providing an additional employment of 25 million. But owing to the recent sluggish economy, the Society of Indian Automobile Manufacturers (SIAM) has revised the estimates to USD 111 billion by 2016. Growth drivers 1. Growing demand   Greater availability of credit & financing options  3. Rising incomes, growing middle class and a young population Strong growth in exports as well 2. Rising investments Policy support  Rising investments from foreign and domestic players  Large pool of skilled manpower and a growing technology base will induce greater investments  Strong projected demand making returns attractive 4. Innovation opportunities  Goal of establishing India as an auto manufacturing hub   Government has set up a technology modernization fund with a focus on the Research & Development activities Tata Nano and the upcoming Pixel have opened up the potentially large ultra low cost car segment  Innovation is likely to intensify among engine technology and alternative fuels  Policy support in the form of sop, taxes & FDI encouragement
  3. 3. Automobile market segmentation Page 3: BEACON Market segmentation in 2012 was as follows: Major Market Players The passenger vehicle market, which constitutes around 80% of automobile sales, has immense growth potential. Anticipating the future market potential, the production of passenger vehicle is forecasted to grow around 10% till 2012-13. Some of the major players and their market share is shown in following graph.
  4. 4. Indian Government Policies for Automobile Industry Page 4: BEACON 1. Auto Policy 2002 a) Automatic approval for foreign equity investment up to 100% with no minimum investment criteria b) Encouragement to R&D by offering rebates on the R&D expenditure spent by the companies 2. Automotive Mission Plan (AMP) 2006-2016 a) AMP’s vision is to make India a preferred destination for design and manufacturing of automobiles and to achieve market size of USD154 billion by 2016 b) Setting up of a technology modernisation fund focussed on SMEs c) Automotives training institutes, auto design centres, special auto parks also established 3. National Automotive Testing and R&D Infrastructure Project (NATRIP) a) Set up at total cost of USD 388.5 million to enable the industry to implement global standards b) Nine R&D centres of excellence with focus on low-cost manufacturing and product development solutions 4. Ministry of Heavy Industries & Public Enterprises a) Worked towards reduction of excise duty on small cars and the increase of budgetary allocation for R&D b) Weighted increase in R&D expenditure to: 200% from 150% (in-house); 175% from 125% (outsourced) 5. Union Budget FY13 a) Excise duty on large premium cars increased from 22% to 27% b) Increased custom duty on cars and MUVs valued above USD 40,000 to 75% from 60% c) 5 year extension on deduction of R&D expenditure under Income Tax Act 6. Other policies a) Government is planning to introduce fuel-efficiency ratings for automobiles to encourage sale of cars that consume less fuel b) National Electric Mobility Mission Plan (NEMMP) aims to push the supply of vehicles powered by electricity over the next 8 years with an expected demand of 5-7 million electricity-operated vehicles by 2020 Pestel Analysis Political : Foreign investment policies 100% foreign direct invest- Economic : ment  Incentives from government for alternate energy vehicles Social : automobiles.  Growth in urbanization and growth of tier 2 cities in-  Indian customers are educated and well informed so Environmental :Global warming and increasing level of pollution make  Legal : Bharat stage emission standards are instituted by government of India , progressively stringent norms are being rolled out for the industry. Awareness about environment in people increased the sale of green vehicles. Mechatronics in automobile increased sophistication. automobile industry evolve continuously.  Technological advancement leads to more safe, comfortable and fuel efficient vehicles. they choose value for money and fuel efficient vehicles.  Inflation and recession directly affect the demand. Technological :creased sales of passenger vehicles  Availability of finance and credits increased sale of  Establishment of automobile hubs, SEZ , etc is helping automobile industry. Sources http://www.ibef.org/industry/india-automobiles.aspx http://www.siamindia.com/ http://indiatoday.intoday.in/story/budget-2012-2013-electric-hybrid-cars-to-get-boost/1/168393.html http://articles.economictimes.indiatimes.com/2013-01-10/news/36258219_1_indian-auto-industry-industry-sales-growth-gdp-growth
  5. 5. Consulting World News Page 5: BEACON Page 5: BEACON Cognizant buys France based Equinox Cognizant Technology Solutions Corp on 2nd October announced that it had acquired France-based Equinox Consulting, a financial services consultancy, for an undisclosed sum. The company expects around $40 million annualised revenue from the acquisition but declines to share financial details of the deal. The company has made seven such buyouts in the last three years of which three have been in consulting related. Equinox Consulting provides business consulting services across investment banking, asset management, retail banking, insurance, and specialised financial services. The company is known for its regulatory consulting expertise. The acquisition will also add to the company’s existing presence in the financial services and insurance sector — the largest industry segment for Cognizant — which contributed around 42 per cent to its top line. FMC appoints Grant Thornton for forensic audit of MCX The Forward Markets Commission (FMC) has appointed audit and consultancy firm Grant Thornton to conduct a forensic audit of Multi Commodity Exchange of India Ltd (MCX), indicating that investigations into the settlement crisis at the National Spot Exchange Ltd (NSEL) are expanding to other bourses promoted by the same parent—Financial Technologies (India) Ltd. Grant Thornton had earlier conducted a forensic audit of NSEL, which has been hit by a Rs.5,574.35 crore payment crisis. NSEL is 99.99% owned by Financial Technologies. Grant Thornton’s audit of MCX is likely to examine the trades done by the Indian Bullion Market Association Ltd (IBMA) on MCX, among other issues. NSEL owns over 60.88% stake in IBMA. Debt to drive M&A surge for chemicals business New analysis by consulting firm A.T. Kearney paints a turbulent picture ahead for global chemicals players: a $33bn debt peak in 2018 and depressed margins as a result of US shale gas forcing a major divestment frenzy that will reshape the landscape for at least 27 chemicals businesses with a turnover of more than $1bn. These companies will preside over a debt mountain of approximately $140bn in the next five years.The A.T. Kearney study, Refinancing Will Drive Chemicals Consolidation finds that the flurry of deals that occurred in the chemicals sector between 2006 and 2008 are now spurring a wave of repayments that will come due between 2013 and 2018.A.T. Kearney analysts say that any new deals now are occurring within the context of refinancing debt from the transaction peak, and it is investment grade companies that will lead the trend. Some companies, such as INEOS, refinanced part of their debt in 2012. However, according to A.T. Kearney analysis, the bulk of the debt repayment is concentrated over the next few years, with levels of $22bn to $26bn through 2015, leading to a peak of $33bn due in 2016. Roland Berger: European companies must invest to boost competitiveness Europe's economy is in the doldrums. Yet companies are still looking to the future with a positive mindset. 76% of survey respondents expect a return to robust economic growth in 2015. But the prospects for European competitiveness are not quite as bright. Over 70% think Europe will lose its competitive edge, primarily to Asia. European companies will also probably lose out to North and South America in the next few years, according to the findings of the international restructuring study for 2013. "To avoid losing out to other economies, European countries should invest more in factors that enhance competitiveness, such as infrastructure, innovation power and the education system. After all, the European internal market is a very important export market for many European companies," says Max Falckenberg, Partner at Roland Berger Strategy Consultants."Europe should become closer economically and politically. Otherwise the situation might get even worse for companies from the continent's crisis-ridden southern fringe," Roland Berger restructuring expert Jakob Rüden says. But many companies are sceptical about this: over 60% of those surveyed are doubtful that the current political actions in individual countries can boost confidence in Europe. Bestoutcome strengthens board with appointment of non-executive director Bestoutcome, the specialist consultancy in complex change management for large organisations, is delighted to announce the appointment of Steve Watmough as non-executive director. Steve will support the ongoing growth and success of the company as it looks to further enhance its flagship project portfolio management software PM3 and consultancy services. Steve has a successful 30 year track record in the IT and Management Consulting field, most recently heading KPMG's CIO Advisory practice in the UK. This followed the acquisition by KPMG of Xantus, a leading IT Advisory firm. Steve was CEO of Xantus having co-founded the business in 2000. Bestoutcome focuses on change projects that deliver successful business outcomes. Its PM3 toolset encompasses change management, resource and capacity management, outcome-driven planning, project office support, risk mitigation and benefits realisation.
  6. 6. BELOW ARE ANSWERS TO ISSUE-11. SEPT_2013 QUIZZ TIME !! Page 6: BEACON 1. Bearing Point 2. Iva’n Marte’n , BCG 3. PA Consulting Group 4. Skoda Auto, Vaclav Klement , Vaclav Laurin 5. Elon Musk ( Founder of Tesla Motors, SpaceX and an inspiration for the character of Tony Stark in Iron Man series) Mail Answers To: simcon.simsree@gmail.com with Subject= simcon_quiz_october_2013 First Received All Correct Answers will be published in next month’s Edition. Winner of Quiz September 2013 -> Hrishikesh Rahatal (MMS 2013-15) QUIZZ OF OCTOBER 2013 Q.1. Connect the images top to bottom and identify the person and the consulting firm (s)he is in. Q.2. Name the consulting tool which is named after an American city famous in history for a “party” related to a hot beverage. Q.3 The consulting firm (X), which was ranked as one of the best consulting firms to work for (2013), recently sold stake in a company (Y) which was ranked “Seven Small Jewels”(2012). Identify X and Y. Q.4. Ernst & Young published a report in 2008 named after an Indian cricketer, which talked about the growth story in small towns. Name the report. Q.5. X is French by birth. X married the adopted child of an Indian business family. Under X’s leadership, an Indian company Y - named after the goddess Lakshmi – became a leader in its segment. The stakes in Y were sold and money from the sale was used to set up a retail company, whose chairperson X currently is. Identify X and Y. Contributions invited: To make this feature a successful effort, we seek continued involvement and contribution from our readers, that is YOU. We invite articles and trivia on themes related to consulting. Be it industry news, consulting trends, a joke, a cartoon or feedback, we are eager to hear from you. So go ahead, do your research, pen down your thoughts and mail your entries to simcon.simsree@gmail.com. Best Regards, SIMCON –SIMSREE CONSULTING CLUB SIMSREE, B-ROAD CHURCHGATE 400 020, INDIA. Mail To: simcon.simsree@gmail.com

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