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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4601)	6/15/1999 10:38:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

PC Market beats the Economy, grows 33% in 1998-99* New Delhi, May 1999 - IDC (India)'s PC Tracking Program reveals that the Indian PC market recorded a healthy growth in 1998-99, despite the economy being in the doldrums for a major part of the year. Units shipments of PCs recorded a growth of 33% in unit terms and 20% by value, reaching a figure of 844,550 units and Rs.4009 Crores during the period April 1998 to March 99. Between the various form factors, Desktop PCs grew commensurate with the market growth. After staying virtually stagnant in 1997-98, PC Servers grew at a robust 27% in unit terms. Growing demand from banks and financial institutions, especially in the latter half of the year fuelled the growth in the PC Server market. The Notebook market, on the other hand, remained constrained, registering a growth rate of only 10% in 1998-99. IDC believes that demand for Notebook PCs is still a corporate-only phenomenon. High prices vis-à-vis similarly configured Desktop PCs remain the main deterrent. In a year when the economy was at its worst and corporate investment was constrained, the Home segment turned out to be the saviour for the PC industry. The segment grew by an astounding 89%, with shipments crossing the 200,000 mark. Small Business and Small Offices were the other segments that recorded growth rates higher than the market average. These three segments captured more than 51% of the market in 1998-99, up 12 percentage points since 1997-98. April 1998 to March 1999 ^1Crore = 10 Million Table 1: Indian PC Market by Form Factor, 1997-98 & 1998-99 Form Factor 1997-98 1998-99 Units Value (Rs. crore) Units Value (Rs. Crore) Desktop 604,687 2,814 806,910 3,371 PC Server 13,681 253 17,352 344 NoteBook 18,408 268 20,288 294 Total 636,776 3,335 844,550 4,009 As the market becomes more segmented, vendors need to devise segment-specific strategies to win in the market place. Vendors who have taken the lead in targeting the growing segments are the ones who have emerged as winners. HCL continued to be the market leader in terms of number of PCs sold, followed by Compaq and Zenith. Both HCL and Zenith did well because of a good presence in the fastest growing segments of the market viz. Home, Small Office and Small Business. Low price-points together with promotional blitzkrieg enabled these vendors to capture the imagination of the home buyer, who still shows a very strong tilt towards local assemblers. Table 2: Market Shares of Leading PC Vendors, 1998-99 Vendor Share by Units Share by Value HCL 8.4% 7.9% Compaq 7.9% 15.6% Zenith 7.0% 5.1% IBM 4.2% 7.7% Acer 3.7% 4.4% Hewlett-Packard 3.5% 5.6% Wipro 3.3% 2.8% Vintron 1.9% 1.2% SNI 1.6% 2.3% Dell 1.0% 2.5% Others 57.5% 44.9% Total 844,550 Units Rs.4,009 Crores *Includes Local Assemblers and GIDs idcindia.com

To: Mohan Marette who wrote (4601)	6/15/1999 11:06:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Jet Airways signs $550 mil deal with Boeing. jetairways.com Jet Airways signs $550m deal for 10 Boeing 737s Cuckoo Paul Le Bourget 14 June JET Airways today signed a purchase agreement with Boeing Commercial Aircraft group for 10 more next generation 737 aircraft. The deal, worth $550m, was signed by Jet Airways chairman Naresh Goyal, who is on a high-profile visit to witness the Paris air-show. Importantly, the aircraft, which are to be delivered between 2001 and 2003, will replace the existing leased aircraft. Jet Airways is expected to float an international tender for the funding of the fleet. ''Tying up funds for the aircraft will not be a problem because the US Exim has agreed to guarantee the deal,'' Mr Goyal told The Economic Times. The asset-based financing for the aircraft will be underwritten by a consortium of banks. The US Exim guarantee is for 85 per cent of the fleet cost. The special 'substitution right' deal with Boeing will allow Jet to choose between the 737 versions 600/700/800/900. Boeing has offered Jet Airways the flexibility of choosing the exact size of the aircraft as the delivery time draws closer, depending on the market conditions at the time. The 600/700/800 and 900 versions are differing sizes of the fuselage of same aircraft type. ''The 737-900, which will enter production only by the end of 2000, is a 180-seater in a two-class configuration,'' said Boeing India president, Dinesh Keskar. The new deal takes Jet Airways miles ahead of its domestic competition in terms of the aircraft type. Jet Airways, in fact, already ranks among the best in the world, in terms of average fleet age. The new order for the latest aircraft available is expected to consolidate their position further, according to international experts here. Boeing is currently in the middle of delivering its existing order of 10 aircraft to Jet. Six of the aircraft, 737-400 and 800s have already been delivered and four more are expected to join the fleet by the end of this financial year. The airline, which currently has a fleet of 25 aircraft, has government clearance for 20 and has applied for four more aircraft. Meanwhile, at the Paris air-show, Jet Airways announced the leasing of five ATR-72 aircraft on Sunday. The aircraft will be used on short-haul feeder routes. The brand-new aircraft will be taken on an operating lease from Aircraft International Renting (AIR), a subsidiary of France's TAT group and Credit Agricole IndoSuez. Commenting on the airline's profitability in 1998-99, Mr Goyal said that Jet Airways had an average load factor of 67 per cent during the year. The market share grew from about 28 to 35 per cent, he said. On profit figures, Mr Goyal said: ''We make enough money.'' Commenting on the possibility of going public to fund expansion plans, he said there was ''no need for it now. economictimes.com