Economic Eye: Macro Analysis I

Chapter 1: IIP report

The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period. It is compiled and published monthly by the Central Statistics Office (CSO) with the time lag of six weeks from the reference month.

General Index:

 

In 2013-14 financial year growth rate of IIP was -0.1%. Y-O-Y monthly growth rate is showing positive in each month of 2014-15 financial year except in Oct’14. The growth rate is negative in October because of the more numbers of holidays (Diwali) fell in October whereas last year they were in November. There is a good recovery in month of November by increasing 3.9%. 

  

Fig 1: Graph representing general index

Analysis Report: ESAB India Ltd. (BUY; Estimated Price: Rs. 970)

Introduction:

ESAB India Ltd. was incorporated on 10^th November, 1987 and commenced its operations in July 1988 with the acquisition of Peico Electronics and Electricals Ltd., now known as Philips India Limited. ESAB India is a leading supplier of welding and cutting products and has its manufacturing facilities located in various states of India. It has got ISO certifications for four of its principal manufacturing facilities located at Kolkata, Chennai and Nagpur. It has variety of products which include welding consumables, reclamation consumables, arc equipments, industrial gas equipment, cutting machines and welding automation. They are now an integral part of industries like Shipbuilding, Petrochemical, Construction, Transport, Offshore, Energy and Repair and Maintenance.

Shareholding pattern:

Cat Code	Category of Shareholder	Number of Shareholders	Total number of shares	Number of shares held in dematerialized form	Total shareholding as a percentage of total number of shares
A	SHAREHOLDING OF PROMOTER AND PROMOTER GROUP	3	11347960	11347960	73.72
B	Public Shareholding
1.	INSTITUTIONS
A	MUTUAL FUNDS/UTI	14	119129	110828	.77
B	Financial institutions	9	2102	1582	.01
C	Foreign institutional investors	6	213863	213863	1.39
2.	NON- INSTITUTIONS
A	Corporate Bodies (Indian/foreign/Overseas)	227	379259	373996	2.46
B	Individuals(Resident/ NRI/ Foreign National)
(i)	Individual shareholders holding Nominal share Capital up to Rs.1 lakh	9837	1668061	1372751	10.84
(ii)	Individual shareholders holding Nominal share Capital above Rs.1 lakh	5	84713	84713	.55
C	Any other (specify)	92	1577933	1577933	10.25
	Total Public Share Holding (B)	10190	4045060	3735366	26.28
	TOTAL(A+B)	10193	15393020	15083326	100.00

The Executive Director of the company has recently been changed. Mr. Rohit Gambhir, who had joined ESAB India Ltd. in March, 2013, is the current Executive Director and Chief Executive since November, 2013. He has earlier received Eagle Award for exceptional performance while working in Stanley Black and Decker as its Business head. At the end of December 2013 the Company had 644 employees as against 683 at the end of 2012.