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Automobile industry with growing investment needs | Kranti Industries SME IPO

Published on Thursday, February 14, 2019 by Team

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Automobile industry with growing investment needs | Kranti Industries SME IPO

The Market Size

Indian automotive industry (including component manufacturing) is expected to reach $250 billion by 2026. In the financial year 2018, India automobile industry manufactured 29.07 million vehicles and sold 24.97 million vehicles. The passenger vehicle sales in India crossed the 3.2 million units in FY18 and is further expected an increase up to 10 million units by FY20. Overall, Domestic automobiles sales increased at 7.01% CAGR between FY13-18 with 24.97 million vehicles being sold in FY18.

Automobile exports grew 20.78% during April-November 2018. It is expected to grow at a CAGR of 3.05% during 2016-2026. Domestic two-wheeler industry is expected to grow at 8-10% during FY19. Also, the Luxury car market in India is expected to grow at 25% CAGR till 2020. The Government of India expects the automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023.

Government Vision

The Indian Govt. aims to develop India as one of the biggest global manufacturers, as well as, the biggest research and development (R&D) junction. The recently established National Automotive Testing and R&D Infrastructure Project (NATRiP) centers, as well as, the National Automotive Board act as a facilitator between the government and the industry. Under (NATRIP), five testing and research centers have been established in the country since 2015.

Electric Vehicles (EVs)

The Indian government has also set up an ambitious target of having only electric vehicles being sold in the country. Indian auto industry is expected to see an 8-12% increase in its hiring during FY19. The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for the introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The first phase of the scheme has been extended to March 2019 while a second phase is expected soon. The number of vehicles supported under FAME scheme has increased to 192,451 units in March 2018 from 5,197 units in June 2015.

Automobile industry Future

The current 4th wave of Industrial revolution indicates that the segment is expected to grow at an exponential pace. The current policy directed towards the Automobile sector will also increase investment opportunities, as the companies are constantly growing and expanding their base for mass production to feed the growing demand.

Kranti Industries

Kranti Industries is an auto parts manufacturing unit with expertise in manufacturing of auto parts for electric cars, agricultural vehicles, and construction vehicles.

Looking at the market and the growth status, the company is expected to take a leap in the segment and emerge as a major player in the long term, and therefore the result is good returns in the long run.

Kranti Industries is planning to list the BSE SME platform though and SME IPO route. The SME IPO of the company opens on Feb. 14, 2019. The IPO offer an early opportunity to investors who would like to be part of this growth story.

Kranti Industries IPO Latest Update

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