NOVEMBER 20239TOP STORIESTVS MOTORS EXPANDS TO EUROPE VIA EMIL FREY GROUP PARTNERSHIPOn Nov 16, TVS Motor Company revealed its expansion into the European market through a partnership with Emil Frey Group, a company based in Zurich. According to a statement released by the company, they have officially signed an import and distribution agreement with Emil Frey, a well-established 100-year-old company known for its strong presence in the automotive distribution industry.The partnership marks a major milestone in TVS Motor Company's global expansion efforts, capitalizing on Emil Frey's extensive distribution network and in-depth market knowledge in Europe."This strategic alliance with Emil Frey is a crucial step in our global expansion strategy. Europe will be a key market for us, and through this partnership, we aim to bring our cutting-edge products closer to European customers," TVS Motor Company MD Sudarshan Venu said.Partnering with Emil Frey brings together two longstanding, prestigious organizations with a shared commitment to sustainable mobility, responsible practices, and exceptional customer service. Emil Frey stands as one of Europe's top automobile importers and retailers, catering to numerous leading automotive brands throughout the region.In accordance with the partnership, Emil Frey Group entities will be responsible for distributing TVS products in specific countries by leveraging their sales, marketing, and service networks. Europe will have access to a range of TVS products, including the Jupiter 125, NTORQ, Raider, iQube S, Ronin, Apache RR 310, and Apache RTR 310.TVS Motor products are currently available in over 80 countries across Asia, Africa, and Latin America. The company's exports account for almost a quarter of its business in the first half of the current fiscal year. POWER DEMAND EXPECTED TO INCREASE BY 7 PERCENT: FITCH REPORTSAs per Fitch Ratings, domestic power demand is expected to increase by 7 percent year-on-year in 2023-24 due to strong industrial activity. According to a report by the rating agency, it anticipates the receivable days (payment cycle) to continue to decrease in the near future. It anticipates a 7 percent increase in India's power demand for FY24, following a 7.1 percent rise in the first half of FY24, driven by strong industrial activity. This is equivalent to a 9.5 percent increase in FY23. The report stated that the strong demand for power is expected to maintain the average thermal power plant load factor (PLF) at or above 60 percent.The report also mentioned that consistent payments made under the central government's late payment surcharge (LPS) regulations have reduced the overall amount owed by distribution companies (discoms) to power generation companies (gencos) to approximately Rs 70,000 crore. This is a significant decrease from the Rs 1.3 lakh crore owed in June 2022 when the LPS was first implemented.Fitch anticipates that the amount of time it takes for Fitch-rated gencos to collect receivables will continue to decrease in the near future, albeit at a slower pace than the significant improvement seen in FY23.Nevertheless, the continued improvement of Gencos' receivables position relies on implementing structural changes to enhance the operational and financial capabilities of Discoms in the long term. This comprises promptly adjusting tariffs, government subsidies, and improved operational efficiency.As of the end of September 2023, the thermal coal inventory has dropped to approximately 8.4 days compared to the usual 18 days. Despite the government's efforts to sustain sufficient coal stock by boosting local supply and promoting increased coal imports over the past six months, this was still the case.
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