Crisil SME Tracker: Profitability of dairy units will rebound in FY21

CRISIL expects a sharp hike in milk procurement costs relative to milk retail prices to deal a huge blow to the earnings before interest, tax, depreciation and amortisation (EBITDA) margins of dairy processors — especially private small and medium enterprises (SMEs) — in the current fiscal year (FY20).

The all-India milk procurement cost is estimated to have risen 19 per cent year-on-year (y-o-y) for dairy processors over April-December 2019, and is expected to rise by 18-20 per cent for the full fiscal. The uptick in prices has been fuelled by a 5-6 per cent decline in milk production in the current fiscal year — due to high temperatures during April-June, and floods in July-August.

Retail milk prices rose by 3-4 per cent during April-December 2019, and are expected to rise 10 per cent during January-March 2020, thus closing this fiscal 5 per cent higher y-o-y.

The impact will be magnified in states such as Karnataka and Haryana, where state governments offer a subsidy of ~4-6 per litre on milk supplied to cooperatives. While large private players are able to match the price offered by cooperatives to obtain the quantity of milk they

Read More

Suzuki Motorcycle February total sales rise 3.5% to 67,961 units

Pvt Ltd (SMIPL) on Monday reported a 3.5 per cent increase in total sales at 67,961 units in February this year.

The company had sold 65,630 units in February last year, SMIPL said in a statement.

Domestic sales during February this year stood at 58,644 units as compared to 57,174 units sold in the year-ago month, a growth of 2.57 per cent, it added.

“Inching closer to the end of the current fiscal year, we are happy with our sustained growth momentum,” SMIPL Managing Director Koichiro Hirao said.

February was an eventful month for the company as it unveiled compliant product portfolio at the Auto Expo 2020 that received much love from the automobile enthusiasts, he added.

“Furthermore, we commenced the sale of compliant Burgman Street from the dealerships. We are confident that the new product launches will propel our sales growth in the Indian market,” Hirao said.

Read More

4 tips for anyone starting a new property development business

The British have an ongoing love of property with the phrase ‘an Englishman’s home is his castle’ still resonating.

There is a continuous flow of TV shows too that feed our knowledge and inspiration with ‘Grand Designs’, ‘Selling Houses’, ‘Old House, New Home’, ‘Location, location, location’, and so on.

As well as inspiring the next generation of homeowners to make the most out of their investment, there is also a growing breed of entrepreneurs with a desire to make it their day job.

But is being a property developer that easy?  Like most things in life, if it were easy then everyone would be doing it, and so our top 4 tops for anyone starting a new property development business may help.

Have a Plan

All businesses need a clear strategy that will help focus on the key income generating issues as well as the things that might go wrong.  There are plenty of online resources that will help in creating a business plan, but the key elements will include:

  • Business objectives – where you are going to invest, types of property, size of project, etc
  • Your mission statement and ethos – what is going to make your business stand

Read More