Risk and Return Analyis and Portfolio Management of Indian Automobile Companies

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  • Topic: Maruti Suzuki, Automobile industry in India, Automotive industry
  • Pages : 32 (6790 words )
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  • Published : May 10, 2010
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PSG INSTITUTE OF MANAGEMENT

FINANCIAL SYSTEMS

A PROJECT REPORT
On
RISK AND RETURN ANALYSIS
&
PORTFOLIO MANAGEMENT
Of
INDIAN AUTOMOBILE COMPANIES

Submitted by,
G.Abirami(9UTB02)
M.Kamalam(9UTB13)
N.Nirupa(9UTB18)
P.Srilakshmi(9UTB32)

INDEX

CONTENTS
PAGE NO.

Acknowledgement

Statement of Problem

Introduction:
Industry overview
Company profiles

Objectives

Scope & Limitations

Literature Review

Research Methodology

Analysis & Interpretation

Findings

Suggestions

Conclusion

Bibliography

(i)

(ii)

1
1
3

13

13

14

18

20

33

36

37

38

ACKNOWLEDGEMENT

First of all we thank the Almighty for having bestowed upon us the sufficient potential with which we are able to complete whatever work we undertake successfully. We feel a heart full of gratitude to our Director Mr.R.Nandagopal for encouraging us regarding all our curricular activities which take place at PSGIM. We also extend our thanks to our co-ordinator Mrs.V.Srividhya for being a constant support throughout and keeping us guided along the right path always. We also wish to thank our teacher for Financial and Management Accounting Mr.P.Varadharajan for having given us this opportunity in taking up this project and for his constant support and guidance throughout the course of the project. We also like to thank our parents who have carved a bright future for us by placing us in such a spectacular and prestigious institution where we could see ourselves as what and as whom we dream to become. May be the last but not the least people to thank are our friends. Thanks is a word not to be shared among friendship but it should be felt for the presence of their soulful support throughout our life.

(i)
STATEMENT OF PROBLEM

Automotive Industry has significantly increased its contribution to overall industrial growth in the country. By 2030 India will be the third largest car market in the world after China and Japan. This coupled by the purchasing power of the ultra rich makes India a top destination for manufacturers of luxury cars

Investment by foreign companies in automobiles implies a bright future for the auto industry India. This will lead to the creation of jobs, and a wider range for consumers to choose from. It will also give Indian companies a chance to compete globally for clients. This will greatly benefit the auto component and ancillary industry that will get access to the latest technology and manufacturing practices.

According to Commerce Minister Kamal Nath, India is an attractive destination for global auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India, despite the absence of specific trade agreements. Current Scenario

On the cost front of Indian automobile industry, OEMs are eyeing India in a big way, investing to source products and components at significant discounts to home market. Overview
By 2010, India is expected to witness over Rs 30,000 crore of investment.
Maruti Udyog has set up the second car with an investment of Rs 6,500 crore.
Hyundai will bring in more than Rs 3,800 crore to India.
Tata Motors will be investing Rs 2,000 crore in its small car project.
General Motors will be investing Rs 100 crore and Ford about Rs 350 crore.
Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment.

(ii)

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INTRODUCTION
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.

Industry Overview:
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the...
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