netrashetty
Netra Shetty
Kraft Foods Inc. (NYSE: KFT) is the largest confectionery, food, and beverage corporation headquartered in the United States.[2] It markets many brands in more than 155 countries. 11 of its brands annually earn more than $1 billion worldwide: Kraft, Cadbury, Oscar Mayer, Maxwell House, Nabisco, Oreo, Philadelphia Cream Cheese, Jacobs, Milka, LU, and Trident. 40 of its brands are at least 100 years old.[3]
The company is headquartered in Northbrook, Illinois, a Chicago suburb.[4] Its European headquarters is in Glattpark, Opfikon, Switzerland, near Zürich;[5]
Kraft is an independent public company, it is listed on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on September 22, 2008, replacing the American International Group.[6]
The present market size for airport equipment and ground support services is estimated to be $359 million. Successful privatization of airport maintenance and ground support services will lead to another $50 million in market growth over the next three years. In 2007 a significant event in the Indian aviation sector was the approval of the Airports Economic Regulatory Authority Bill 2007. This will help set up the Airports Economic Regulatory Authority (AERA), which will establish a regulator to fix, review and approve a tariff structure for aeronautical services and also will monitor preset performance standards at Indian airports. This is expected to speed the implementation of several airport projects in the country.
Privatization
Although privatization is a sensitive issue, the government has managed to bring about significant changes in the framework that governs sector investments. Today: (a) 100% FDI is permissible for existing airports; FIPB approval required for FDI beyond 74%; (b) 100% FDI under the automatic route is permissible for greenfield airports; (c) 49% FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies; (d)100% equity ownership by Non Resident Indians (NRIs) is permitted; (e) AAI Act amended to provide legal framework for airport privatization; (f) 100% tax exemption for airport projects for a period of 10 years.
In addition, the international airline sector has recently opened up to Indian private sector airlines. In April 2007, the government of India formed a holding company – the National Aviation Company of India (NACIL) - by merging the Indian national carriers Air India and Indian Airlines. This company may offload a 10% to15% stake through an initial public offering (IPO) sometime in 2008 to fund expansion and create competition from private airlines. Successful privatization of airport maintenance and ground handling services will lead to $50-60 million or more in market growth over the next three years.
Airport Growth
To ensure that the development of the sector was not restricted to the metro cities alone, the GOI announced its plans to modernize 35 non-metro airports into world-class entities at an estimated cost of $1.05 billion. The airports to be modernized include Coimbatore, Tiruchi, Thiruvananthapuram, Visakhapatnam, Port Blair, Mangalore, Agatti, and Pune. This is in addition to the large metro airports that modernization is already taking place in Delhi,
Mumbai, Bangalore and Hyderabad, while the process has been initiated in Kolkata and Chennai. The International Civil Aviation Organization (ICAO) has also approved greenfield airports at Navi Mumba, Goa, Pune, Kannur, and Nagpur.
The Federal Ministry of Civil Aviation is the governing Indian agency for this sector. The 2005-2006 budgets granted civil aviation $528 million. The Airports Authority of India (AAI), which governs all Indian airports, budgeted an additional $200 million. AAI manages 126 airports, which include 11 international airports, 89 domestic airports and 26 civil enclaves at defense airfields.
MRO Facilities
Maintenance, Repair and Overhaul (MRO) facilities are also expected to need additional ground support equipment. Both Boeing and Airbus have decided to invest in a MRO facility. Industry sources estimate that establishing a world class MRO will require an investment of over $200 million. Scheduled projects include:
Mumbai airport: Construction of four additional domestic parking bays Construction of a new taxiway parallel to the secondary runway Expansion and upgrade of terminal 1B Work to begin on refurbishment and construction of Terminal 2 Revamp of terminal 1A will include increasing check-in counters and boarding bridges
Delhi airport: Construction of a new rapid taxi track, connecting runway 10/28 and P taxi track Modification and expansion of terminal 1B arrival block Provision for a visual docking guidance system Work has already started on the construction of a parallel runway, which will be one of the longest in Asia. The runway will be operational in 2008, along with the new domestic terminal
Chennai airport: Construction of an apron for Bay 35 Extension of the canopy on the city side of Kamraj domestic terminal Creation of aero links for bays 24, 25 and 29
Kolkata airport: Renovation of Bays 11 and 12 Construction of a new hangar Construction of a cargo apron The AAI also controls the ground-handling sector and provides Air Traffic Management Services for the entire Indian AirSpace and adjoining oceanic areas, with ground operations at all airports and 25 other locations to ensure flight safety.
Other Opportunities
The most promising sub-sectors in the airport equipment and ground-handling services continue to be technology-driven communication and ground services. The AAI has an annual budget of approximately $60 million for procurement of equipment that are dependent on foreign technology.
The Ministry of Civil Aviation and the Federal Aviation Authority (FAA) of the United States signed a Memorandum of Agreement (MoA) paving the way for technical assistance from the United States on a host of aviation related matters. This is expected to provide opportunities for American companies in the Indian aviation sector.
The Indian Ministry of Civil Aviation is also addressing other important issues that will result in long-to-medium term opportunities for companies outside of India. These opportunities include decreasing the systematic cost in the sector and determining the appropriate mechanism for providing air services to remote and commercially unviable sectors as part of a comprehensive longterm civil aviation policy. Also, an independent regulatory authority is being planned for the sector. This measure will increase competition, and bring about a level-playing field in the sector.
Insiders expect that the demand for pilot licenses in the near future will be 2,500 annually, though with the present rate issuance, India would take at least 7 to 10 years to meet that figure. Analysts estimate that there will be a need for 8,000 pilots by 2020. This presents unique opportunities to flying schools outside of India to train Indian pilots and other aviation officials.
The company is headquartered in Northbrook, Illinois, a Chicago suburb.[4] Its European headquarters is in Glattpark, Opfikon, Switzerland, near Zürich;[5]
Kraft is an independent public company, it is listed on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on September 22, 2008, replacing the American International Group.[6]
The present market size for airport equipment and ground support services is estimated to be $359 million. Successful privatization of airport maintenance and ground support services will lead to another $50 million in market growth over the next three years. In 2007 a significant event in the Indian aviation sector was the approval of the Airports Economic Regulatory Authority Bill 2007. This will help set up the Airports Economic Regulatory Authority (AERA), which will establish a regulator to fix, review and approve a tariff structure for aeronautical services and also will monitor preset performance standards at Indian airports. This is expected to speed the implementation of several airport projects in the country.
Privatization
Although privatization is a sensitive issue, the government has managed to bring about significant changes in the framework that governs sector investments. Today: (a) 100% FDI is permissible for existing airports; FIPB approval required for FDI beyond 74%; (b) 100% FDI under the automatic route is permissible for greenfield airports; (c) 49% FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies; (d)100% equity ownership by Non Resident Indians (NRIs) is permitted; (e) AAI Act amended to provide legal framework for airport privatization; (f) 100% tax exemption for airport projects for a period of 10 years.
In addition, the international airline sector has recently opened up to Indian private sector airlines. In April 2007, the government of India formed a holding company – the National Aviation Company of India (NACIL) - by merging the Indian national carriers Air India and Indian Airlines. This company may offload a 10% to15% stake through an initial public offering (IPO) sometime in 2008 to fund expansion and create competition from private airlines. Successful privatization of airport maintenance and ground handling services will lead to $50-60 million or more in market growth over the next three years.
Airport Growth
To ensure that the development of the sector was not restricted to the metro cities alone, the GOI announced its plans to modernize 35 non-metro airports into world-class entities at an estimated cost of $1.05 billion. The airports to be modernized include Coimbatore, Tiruchi, Thiruvananthapuram, Visakhapatnam, Port Blair, Mangalore, Agatti, and Pune. This is in addition to the large metro airports that modernization is already taking place in Delhi,
Mumbai, Bangalore and Hyderabad, while the process has been initiated in Kolkata and Chennai. The International Civil Aviation Organization (ICAO) has also approved greenfield airports at Navi Mumba, Goa, Pune, Kannur, and Nagpur.
The Federal Ministry of Civil Aviation is the governing Indian agency for this sector. The 2005-2006 budgets granted civil aviation $528 million. The Airports Authority of India (AAI), which governs all Indian airports, budgeted an additional $200 million. AAI manages 126 airports, which include 11 international airports, 89 domestic airports and 26 civil enclaves at defense airfields.
MRO Facilities
Maintenance, Repair and Overhaul (MRO) facilities are also expected to need additional ground support equipment. Both Boeing and Airbus have decided to invest in a MRO facility. Industry sources estimate that establishing a world class MRO will require an investment of over $200 million. Scheduled projects include:
Mumbai airport: Construction of four additional domestic parking bays Construction of a new taxiway parallel to the secondary runway Expansion and upgrade of terminal 1B Work to begin on refurbishment and construction of Terminal 2 Revamp of terminal 1A will include increasing check-in counters and boarding bridges
Delhi airport: Construction of a new rapid taxi track, connecting runway 10/28 and P taxi track Modification and expansion of terminal 1B arrival block Provision for a visual docking guidance system Work has already started on the construction of a parallel runway, which will be one of the longest in Asia. The runway will be operational in 2008, along with the new domestic terminal
Chennai airport: Construction of an apron for Bay 35 Extension of the canopy on the city side of Kamraj domestic terminal Creation of aero links for bays 24, 25 and 29
Kolkata airport: Renovation of Bays 11 and 12 Construction of a new hangar Construction of a cargo apron The AAI also controls the ground-handling sector and provides Air Traffic Management Services for the entire Indian AirSpace and adjoining oceanic areas, with ground operations at all airports and 25 other locations to ensure flight safety.
Other Opportunities
The most promising sub-sectors in the airport equipment and ground-handling services continue to be technology-driven communication and ground services. The AAI has an annual budget of approximately $60 million for procurement of equipment that are dependent on foreign technology.
The Ministry of Civil Aviation and the Federal Aviation Authority (FAA) of the United States signed a Memorandum of Agreement (MoA) paving the way for technical assistance from the United States on a host of aviation related matters. This is expected to provide opportunities for American companies in the Indian aviation sector.
The Indian Ministry of Civil Aviation is also addressing other important issues that will result in long-to-medium term opportunities for companies outside of India. These opportunities include decreasing the systematic cost in the sector and determining the appropriate mechanism for providing air services to remote and commercially unviable sectors as part of a comprehensive longterm civil aviation policy. Also, an independent regulatory authority is being planned for the sector. This measure will increase competition, and bring about a level-playing field in the sector.
Insiders expect that the demand for pilot licenses in the near future will be 2,500 annually, though with the present rate issuance, India would take at least 7 to 10 years to meet that figure. Analysts estimate that there will be a need for 8,000 pilots by 2020. This presents unique opportunities to flying schools outside of India to train Indian pilots and other aviation officials.
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