A
review of listed companies indicates an improvement in economic
fundamentals, capacity utilization, BMR and expansion. Leasing sector
has the largest potential to meet the demand of funds. Leasing
companies are trying to meet minimum paid-up capital requirement.
Companies are floating TFCs to meet the need for funds. During last
couple of years there has been a gradual decline in average lending
rates. While the move is expected to improve business prospects for
leasing companies, the shrinking spread may cause problems for smaller
companies.
OIL
PRICES
The
forces exerting downward pressure on oil prices were quite significant
this time. There was a substantial fall in the price of oil, which
declined from $28 a barrel in June to around $18 a barrel in November
— a fall of 36 per cent. The oil price regulating committee has
announced four price cuts during last 2-3 months but the benefit is
not being passed on to the common man.
BEVERAGE
INDUSTRY
Beverage industry with a
market sizes of 120 million cases per annum can double its size in the
next 3-5 years, if the taxation policies towards this industry are
corrected by the government. Excessive taxation policy on this
industry, which is 36 per cent of the retail price, is not allowing
this industry to grow as per its real potential.
