Experts Talk- 2014, The Big Year for Businesses

Business decisions are sometimes hard to make, routes are hard to choose. Purpose and worth feel elusive with no sense of direction, where to go and what to do next with your business plans and interests can remain large question marks. And then we need experts advice. Here the industry experts tell about their expectations from the various sectors:

Automobile is a racing sector

“A fall in interest rates is expected to create a conducive environment”
Gaurav Dua, Head of Research, ShareKhan

The automotive sector is poised for a comeback after the slowdown of the last two years. Fast economic growth is anticipated to drive volumes. A fall in interest rates and stable fuel prices are creating an environment conducive for growth.

Few of the foreign companies have been increasing their presence in Indian market. Competition has increased across the scope. To counter this, the companies are focusing on exports, which augurs well for their profitability.

Companies leading the market:

Carnation

Castrol

Pureshield

Express Car Wash

Mahindra First Choice Services Ltd.

Consumer durables are ‘forever’

“Fridge, washing machine, microwave oven firms offer investment opportunities”
VK Vijayakumar, Investment Strategist, Geojit BNP Paribas Financial

The consumer durables industry does well when the economy is growing. In such an emerging country like India where access to consumer goods is still very limited. During the boom period from 2004 to 2011, the faster economic growth, which led to a spike in discretionary income, ensured that the industry did spectacularly well. But since 2011, with growth slowing and high inflation eating into household savings, the industry has been facing rough weather. Rising interest rates and import costs due to rupee depreciation have added to the industry’s woes.

Segments like tablets and smartphones are growing at a fast pace, but don’t offer any investment opportunity, as these are dominated by unlisted MNCs. In the LED TV segment, cheap imports are posing a problem. Nevertheless, washing machine, refrigerator, and microwave oven companies offer great investment opportunities.

Though the sector continues to suffer from declining margins and deficient demand, investors can buy good stocks for the medium to long term, particularly in the context of the bullish trend in the market driven by expectations on the political front.

Booming Brands:

Ecova

Samsung Electronics

Aircon X

Toshiba

Jewelry offering shinier business

Gitanjali Jewels says, “The year ahead seems to be a difficult one so far as investors are concerned. However there is an ever increasing demand in jewel segment.”

This year bring much shinier prospects for the investors. Compared with others, jewellery sector has seen tough time in the last year.

The AT Kearney (a global management consulting firm) study forecasts double digit growth in the Indian jewelery industry in the next five years. Lets see what is in store for this sector.

Big shots of the sector:

Gitanjali

Tanishq

Accesorize

Nakshatra

Kalyan Jewellers

Health care gaining fat profits

“Revenues are expected to grow at 10% a year till 2014-15″
Rakesh Goyal, Senior Vice President, Bonanza Portfolio

The industry has shown consistent double-digit growth in the past years. The pharma market grew about 12% in 2012. Revenues are expected to continue growing at 10% a year between 2013-14 and 2014-15.

Government initiatives like allowing 100% FDI in health & medical services will also help in growing the sector. The govt. also plans to increase health expenditure to 2.5% of GDP by the end of the FY17, which will give the sector another big hike.

Industry Leaders:

Parivar Pharmacy

Ameya Motifs

Apollo Hospitals

United Biotech

Fortis Healthcare

Beauty business is on B-E-A-utiful path

Shahnaz Husain, CEO, Shahnaz Husain Group of Companies, said, “The beauty business is said to be a “happy industry,” because it is among those that is not even affected during the recent recession trends.”

People today are conscious about their looks. Ain’t they? They are spending much more on beauty and wellness than before. The business is slated for growth during the coming years.

Giants of the Industry:

Jawed Habib

V care

e-mane

Madica Swiss

Shahnaz Hussain

Garments to grab more eyeballs

“India’s textile-apparel industry to touch $223 bn by 2021” Ficci

India’s total textile and apparel industry size is estimated at $89 billion in 2011 and is projected to grow at a CAGR of 9.5 per cent to reach $223 billion by 2021. According to a white paper by industry body Ficci and research firm Technopak.

Major names of the sector: