Global real GDP is forecasted to grow by 3.1 percent in 2024, from 2.2 percent in 2023. Most of the weakness will be concentrated in Europe, Latin America, and the US. Asian economies are expected to drive most of global growth in 2023, as they benefit from ongoing reopening dynamics and less intense inflationary pressures compared to other regions.
Despite rapid monetary tightening, inflation is proving persistent in many key economies, particularly on the back of strength in job markets amid severe labor shortages. Therefore, monetary policy is likely to remain restrictive throughout most of 2023 despite financial stability concerns (see our analysis here). Tight monetary policy acts as a break on economic activity and will likely lead to increases in unemployment rates in various economies, particularly in Europe and the US.
Global real GDP growth should pick up steam in 2024 to 2.5 percent and be more evenly distributed among regions. Tailwinds to growth in 2024 will largely come from fading shocks related to the pandemic, elevated inflation, and monetary policy tightening. However, growth rates in 2024 and beyond are likely to be below the pre pandemic trend, given ongoing supply-side weakness (e.g., ageing demographics worldwide and slow productivity growth). Inflation, while lower than experienced currently, may remain relatively elevated for several reasons, including expected persistence in labor shortages, deglobalization, and the global energy transition.
The 10-year economic outlook signals a prolonged period of disruptions and uncertainties for businesses, but there are also opportunities. Global growth will return to its slowing trajectory once the 2022-2023 regional recessions end, with mature markets making smaller contributions to global GDP over the next decade. Nonetheless, there are still opportunities for firms to invest in both mature marketsgiven their wealth and need for innovation to compensate for shrinking labor forcesand emerging marketsgiven their need for both physical and digital infrastructure to support their sizable and young labor forces. Keys to ensuring growth over the longer term include developing new lines of business; strengthening corporate culture; embracing digital transformation and automation; recruiting for talent with new skills not currently represented in the company; and maximizing the hybrid work model where it makes sense.
INDIAN ECONOMY OVERVIEW
The Indian economy displayed speedy and steady growth over the last year on the back of various Government initiatives and reforms and challenges faced due to Corona virus (COVID-19) and lockdown. The growth outlook was optimistic prior to the unexpected COVID-19) outbreak. The outbreak of second wave and extension of relief package in various forms has increased the budget deficit Owing to the massive impact of COVID-19, all the major economies of the world have gone through some form of lockdown or social distancing. But mankind buckled up and pooled the resources together and our frontline warriors fought hard, and various Government vaccination programmes proved to be major
success in Tight against this unprecedented outbreak. The Central government declared the Gross Domestic Product (GDP) for the financial year 2021-22 stands at 8.7 per cent. Indians economic growth in the current year is estimated to be 9.2 per cent, highest among all large economies. For 2022-23, the Reserve Bank of India (RBI) has projected Indians GDP growth rate to be 7.2 percent.
The Government has implemented various measures including free vaccination drive other economic and essential reforms to overcome from the impact of this outbreak and accelerate the growth, These measures were not limited to preventive health care and vaccination doses but also to extend economic impact such as reduction in repo rates etc.
OUTLOOK
The Govt. of India has taken various significant monetary and liquidity measures to mitigate the adverse impact of COVID-19 and in order to mitigate and boost the economic activities. The announcement of stimulus package expects to foster long-term employment and opportunities that will strengthen the economy further in coming years. After the successful implementation of vaccination drives, the Indian economy was ready to get back in the race in short period of time. The Company expecting an accelerated growth in business in coming years.
INDIAN PIPING INDUSTRY OVERVIEW
The domestic plastic pipes industry size is estimated at Rs. 315 billion; of which the organized players account for 60% of the market share. Although the pandemic caused most sectors to evaluate how they operate, the construction industry landed itself a unique opportunity to innovate and grow. Organized players have topped industry growth as they continue to gain market share from unorganized manufacturers. The integration in the PVC pipe market is expected to accelerate. With limited supply and rising PVC resin costs, the regional and unorganized players are expected to face significant sourcing and working capital challenges in the coming years. The major driver leading to growth is Government infrastructural spending, irrigation sector, replacement of aging pipelines, increasing constructions and industrial production among others. There has been growing adoption in PVC/CPVC pipes owing to its easy installation, corrosion and flame resistant, environmentally sound and durability.
OPPORTUNITIES AND THE GOVERNMENT IMPETUS
The unorganized players in the plastic pipes industry were already finding it difficult to gain advantage on the price and market outreach. After the COVID-19 scenario, the companies with high debt and weak cash flow are bound to head towards consolidation resulting in leading of market by organized players with opportunities to acquire regional players at lower valuation.
CHALLENGES
Cost of raw material
The raw material prices increases to a great extent in this financial year also and the production cost of the players operating in the industry also affected a lot. Moreover, the increase in raw material prices impact the end users and pipe manufacturing players, as the cost is to be passed down to the downstream industry users.
Risk Management
The Company has in place an effective risk management framework to primarily control business and operational risks. The major risk areas are systematically and periodically reviewed by the senior management. At various levels, comprehensive policies and procedures will help to identify, mitigate and monitor risks. By taking such proactive measures, the Company ensures that strategic business objectives are achieved seamlessly in a steady and efficient manner. During the financial year under review, rating for fund based facilities of the Company has been upgraded and revised from BWR BBB to BWR BBB+. Further, your Company has an intricate Risk Management procedure which depicts business risk and operational risks that are supported by policy framework.
Human Resource
The Human Resource division of the company plays a vital role in hiring, training, managing and retaining employees to build a group of talented workforces. So that they can reach their full potential and work diligently towards the growth of the organization. The Company has created a level playing field space, whereon equal opportunities to all employees is provided. With this belief, it has enhanced employee morale, boosted productivity and reduced people absenteeism.
Internal Control System and their adequacy
The Company considers that internal control is one of the key supports of governance which provide freedom to the management within an outline of appropriate checks and balances. REX Pipes and Cables Industries Limited have a strong internal control framework, which was instituted considering the size, nature and risk in the business. The Companies internal control environment provide assurance on efficient conduct of operations, security of Assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records, timely preparation of authentic financial information and compliance with applicable laws and regulation. The system and process are continuously improved by adopting best in class processes, automation and implementing latest IT tools.
Introductions
Bus Body building is an important activity. The Chassis are supplied by Automobile manufacturers, and body is built by automobile body builders as per the requirements of the customer and specifications of the different state Transport Undertakings.
Market Potential
Bus is used as the most common public transport vehicle in our country. Different State Transport Undertakings are playing their buses for community public from one place to another and from one State to another. Apart from these undertakings, Private Bus Operators, travel agencies etc. are also operating buses on permit basis. With rapid changes in the society, now days it has become necessary to provide good and efficient service to the public. Also with the rapid industrialization, Public is moving very frequently from one place to another using public transport, private transport in the form of buses will increase in the coming years.
Overview of the Copper and Wire Industry
The copper and wire industry plays a critical role in various sectors of the economy, including construction, electronics, telecommunications, and transportation. Copper, known for its excellent conductivity and malleability, is one of the most widely used metals globally. Wires, often made from copper due to its conductivity properties, are essential components in electrical and electronic systems.
The global copper market size was valued at over $150 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of around 4% from 2021 to 2026. This growth is primarily driven by increasing demand from the construction and electrical sectors, particularly in emerging economies.
The copper and wire industry continues to be a vital component of the global economy, driven by demand from various sectors and technological advancements. However, addressing environmental and social challenges is imperative for sustainable growth and responsible business practices.
AUTOMOTIVE INDUSTRY IN INDIA
Being the fourth largest producer of Automobiles in the world, with an average annual production of more than 4 million motor vehicles, India plays an important role in the global automobile industry. India is gradually developing into the manufacturing hub of automobiles due to low-cost
Production owing to the easy availability of affordable labour and raw materials. The export market is well supported by a weak currency. India is the second- largest bus manufacturer, second largest two wheeler manufacturer, seventh largest in commercial vehicles, sixth largest in passenger vehicles and third largest heavy trucks manufacturer in the world.
INDIAN MARKET FOR BUS BODIES
After the Slump heralded by the 2020 COVID pandemic, the year 2023 witnessed a robust demand for buses in India. After a gap of three long years, bus sales in India registered a strong uptick, driven by the increasing necessity for public mobility and fleet replacement.
As the Indian automotive industry continues to evolve, the surge in bus sales for 2023 reflects a resilient market adapting to changing dynamics and growing emphasis on sustainable and electric mobility solutions.
The Indian Bus Market is poised for continued growth and innovation in the years ahead.
GOVERNMENT INITIATIVES FOR THE AUTOMOBILE INDUSTRY
The Government of India encourages foreign investment in the automobile sector and has allowed 100% FDI under the automatic route. Some of the recent initiatives taken by the Government of India
In Union Budget 2023, the government announced a slew of measures to boost the automobile industry including a reduction in the basic customs duty rate from 21% to 13%, an increase in rebate on personal income tax from ^5 lakh per annum to ^7 lakh per annum, focus on greener mobility, increase in funds allocation towards Vehicle Scrappage Policy and help of the centre government to scrap old vehicles. At the same time, with a focus on local production, the government raised the customs duty on fully imported luxury cars and EVs from 60% to 70%.
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