Saturday, April 10, 2010

Challenges & Opportunities : Double Digit GDP Growth of Indian Economy

India is experiencing growing demand from domestic steel industry. Coking coal (MET Coal) business is positively correlated to Steel Business. As global steel industry revives, it is increasingly being able to garner higher realisations.
Hence coking coal price has been seeing a steady climb upwards for last six months. Coking coal benchmark price for quarter April to June has been set at $200 compared to last year’s benchmark at $128 per tonne. Spot prices, too, continue to increase on back of strong demand.


2009-10 saw a decrease in volumes compared to the corresponding period of 2008-09, due to no demand from export market. Though there was no considerable slump in domestic market, the absence of exports made all the difference. The global demand is picking up steadily and we expect to report an improved performance in 2010-11.

Domestic steel consumption in India is at 60MT in 2009-10. By conservative estimates, India will require 200 MTPA of steel by 2020. For the sake of comparison, China is at 600 MTPA level in 2009-10.
At 200 MTPA, India would require met coke of around 120 MTPA and coking coal of around 170 MTPA. This translates to around 158 MT of net import demand of equivalent coking coal in India.

One may look out players, in public and private domains, which are doing right things to address above opportunities and participate in their business, may be thru an equity route.
I have read an accurate quotation from GEORGE MICHAELIDES
Global Leader (Invention), Mindshare this is :

"Social media (networking)
will be the future of how brands
are built. When urbanisation
happened, you didn’t even know
your neighbour. Now the brand
knows all its consumers and has
made the world a village again"

Friday, March 26, 2010

Promosing Opportunities - A Promising Nation : India

In 2010 - 11 India’s nominal GDP is estimated to be US$1.3 trillion. Assuming 12.4% annual growth (7% real and 5% inflation), India's GDP in 2015 - 16 works out to US$2.3 trillion i.e. an addition of US$1 trillion in the next 5 years.

India’s Next Trillion Dollar Era will see a huge boom in consumption, saving and investment which will throw up several entrepreneurial opportunities. Scenario is very well supported by demographic dividends India has. However there is a need to strengthen physical and social infrastructure ( especially education and health services) so that the benifits can be shared in relatively even proportion.