Non Performing Assets and Business Case Evolution of M&A Prospects in India - Iron -Steel & Basic Metals, Automobile, Textile, Paper Product, Rubber, Gems & Jewellery, Processing Industry - other than Food, Other Infrastructure (Vol 2)

USD 140 Billion of Serious Investment Opportunity Exists in India under Non Performing Assets Category

The incidents of NPA’s has witnessed an aggressive growth in India since FY’2013, as the same has inflated to USD 129.3 Billion in Dec’2017 against a value of USD 38.8 Billion observed in Dec’2013. Sounds contrary to the country’s economic situation which boasts India amongst the fastest growing economies of the world. Ironically, the growth rate is not only fast-paced for high economic activities but also for the watch list of projects which has seen a consistent rise from FY’2013.

Key Queries Resolved

• What is the value and volume of nonstandard, doubtful and loss-making assets in Indian infrastructure sector?


• What is the value and volume of nonstandard, doubtful and loss-making assets in Indian Basic Metal sector?


• What is the value and volume of nonstandard, doubtful and loss-making assets in the Indian processing sector?


• What is the value and volume of nonstandard, doubtful and loss-making assets in the Indian automobile sector?


• What is the value and volume of nonstandard, doubtful and loss-making assets in Indian gems & jewellery sector?


• What is the value and volume of nonstandard, doubtful and loss-making assets in the Indian textile sector?


• What is the value and volume of nonstandard, doubtful and loss-making assets in Indian rubber sector?


• What is the region wise & bank wise split of wilful defaulters for NPA’s?


• What are the challenges in assessing the quality of assets in India?


• What have been the trends in the percentage share of NPA’s of total loans awarded in India?


• What is the possible business case for M&A with the rising case of NPA’s in India?


• What shall be the size & scale of market opportunity for banks, financial institutions, M Cap companies, international investment agencies etc.?


• What would be the likely opportunity in value terms for asset acquisition and asset recovery?

BUSINESS CASE

• As on Dec 2017, the gross NPA with public banks stands to be INR 7,77,280 crores and that with private sector banks hovers around INR 1,07,796 crores


• SBI will be the biggest beneficiary of Tata’s acquisition of Bhushan steel as its bottom line will go up by INR 1300 crores


• JSW steel looks for stressed assets in India and overseas for its 50 MTPA target


• Union government is working on SAMADHAN (Scheme of Asset Management and Debt Change Structure) scheme similar to what the SBI-led group of bankers came out with to takeover unsustainable debt of stressed power plants to avoid their liquidation


• There are plans to rope in National Investment & Infrastructure Fund (NIIF) as an investor to set up an asset reconstruction company that will take over the stressed loans of state-run banks


• The Indian banks have a burden of nearly USD 141 Billion of soured loans as on June 2018. The country has set up a panel of experts to explore mechanisms for resolving the burgeoning bad debts plaguing its financial sector


• Edelweiss is set to raise USD 1.6 Billion to invest in stressed assets in India, with USD 600 Million of it coming from CDPQ

Unique Selling Points

• First-hand sector knowledge and inputs


• Primary research inputs from F2F interviews with domain experts


• Experts insights and market reviews are taken into consideration


• Validated data and analysis


• Opportunity mapping and market sizing


• Germinates from minds that think fresh to evolve pathfinding guide for all stakeholders through quality information and analysis


• Free query handling and analyst support for three months from the date of report procurement

Key Highlights
Business case evaluation for M&A prospects in India

• Identifying the internal & external factors responsible for rising nonperforming assets in India


• Status check and Our exclusive due diligence for existing key nonperforming assets that are favorable for M&A


• Industry-wise detailed profiling of nonperforming assets & status update for sale – Project Database


• Exclusive list of willful defaulters with key details (Name of Borrowing company, Management Team Details, Lending Agency, Outstanding amount)


• Evaluating the business case in NPA sale & exit options in the automobile industry


• Recent developments and outlook till 2022 to address NPA’s – Our exclusive analysis basis scenarios


• The impact analysis of RBI’s new guidelines on NPA’s – Our exclusive short-medium-long term impact analysis and key recommendations

Report Insights

• Complete trend of rising NPA’s in India – bank wise & industry practice wise examination of NPA incidence


• Determining parametric indexation of rising NPA cases in India and the impact of factors responsible


• Examining the global scenarios of stressed assets and identification analysis of best practices for India


• Evaluating the industry wise stressed assets in India


• Understanding the asset quality and tracking challenges for NPA’s in India


• State wise stacking of stressed assets in India


• Examining possible impediments for M&A drive/investments and shortlisting good prospects for acquisitions –Our due diligence study


• NPA recognition and outlook for automobile sector in India


• NPA recognition and outlook for iron & steel sector in India


• NPA recognition and outlook for textile sector in India


• NPA recognition and outlook for rubber sector in India


• NPA recognition and outlook for processing (other than food) sector in India


• NPA recognition and outlook for paper product sector in India


• NPA recognition and outlook for gems & jewellery sector in India


• NPA recognition and outlook for other infrastructure sector in India

A Must Buy For

• Public Sector Banks


• Private Sector Banks


• International Banks


• Financial Institutions


• Asset Reconstruction Companies


• Investment Bankers


• Credit Rating Companies


• Project Developers


• Audit Firms


• Portfolio Management Firms


• Strategic Advisory Companies


• Management Advisory Companies


• Independent Consultants


• Financial Research Companies


• Market Research Companies