COROMANDEL REITERATES COMMITMENT TO TECHNOLOGY-LED AGRICULTURE

 COROMANDEL REITERATES COMMITMENT TO TECHNOLOGY-LED AGRICULTURE

CONTINUES TO INVEST IN THE AG TECH COMPANIES

 

(L –R: Mr. Raghuram Devarakonda, President – CPC, Coromandel International Limited; Mr. Raja Raman, CBO, Dhaksha; Mr. Sameer Goel, Managing Director, Coromandel International Limited; Mr. Ramanathan Narayanan, Director and CEO, Dhaksha; Mr. Arun Alagappan, Executive Vice Chairman, Coromandel International Limited; Mr. S. Sankarasubramanian, President – Fertiliser, Coromandel International Limited; Ms. Jayashree Satagopan, EVP &CFO, Coromandel International Limited)

 

Chennai, December 05, 2022: Coromandel International Limited (BSE:506395, NSE: COROMANDEL), India’s leading agri solutions company offering diverse products and services across the farming value chain and part of Murugappa Group continues its focus on technology adoption in agriculture and has been conducting drone trials in various locations.  Coromandel has made strategic investments in technology-led agriculture and is looking forward to use AgTech to support farmers in increasing farmer’s productivity through adoption of precision agriculture. The company also recently invested INR 200 million into a differentiated drone startup, Dhaksha Unmanned Systems Private Limited. The investment was made through Coromandel’s venture capital arm, Dare Ventures.

 

 

Government of India has been encouraging the use of drone technology for agriculture applications like liquid / nano fertilisers and crop protection chemicals. In December 2021, the Government had released SOPs (Standard Operating Procedures) for drone regulation for pesticide application. These covered important aspects like statutory provisions, flying permissions, area distance restrictions, weight classification, overcrowded areas restriction, drone registration, safety insurance, piloting certification, operation plan, air flight zones and weather conditions.

 

 

Speaking on the investments, Mr. Arun Alagappan, Executive Vice Chairman, Coromandel International Limited said,  "As part of Coromandel’s technology focus, we are closely partnering with the Startup ecosystem and strengthening our presence in the Agtech space. Our investment in Daksha reflects this endeavour and gives us a strong position in the Unmanned Aerial Systems (UAS) technology solutions area. With focus on resource use efficiency, the drone adoption in agriculture holds significant potential to improve agri inputs effectiveness, reduce water usage, boost farm mechanization and drive precision agriculture practices.  There has also been good support from the Government to improve its adoption in Agriculture in terms of policy and regulatory support. At Coromandel, we will continue to promote such technologies that can drive productivity gains and sustainable agricultural practices in the Indian farms”.

 

Hotel investment volume in 2020 witnessed a 60%

Key Highlights:

• India hotel investment trading volume declined 84% in 2020 as compared to the peak witnessed in 2019
• India-wide hotel performance registered a decline in RevPAR (Revenue per Available Room) by approx. 55% over the previous year, closing at a RevPAR of INR 1,675
• Whilst performance of business hotels has yet to fully recover, leisure markets led by domestic travellers showcased some resilience in the last quarter of 2020
• Hotel investment volume in India reached a record high in 2019 registering investment sales of USD 762 million

Hotel investment volume in 2020 witnessed a 60% global decline in comparison to 2019: JLL

India hotel investment trading volume declined 84% in 2020 as compared to the peak witnessed in 2019

 

Hotel investment volume in 2020 witnessed a 60% global decline in comparison to 2019 and in India, the decline in hotel investment trade was even sharper at 84% in 2020 as compared to 2019 according to JLL. Previous years had seen promising and consistent growth in occupancy and average daily rate (ADR) levels across key cities world over. India was no different.

 

India-wide hotel performance registered a decline in RevPAR (Revenue per Available Room) by approx. 55% over the previous year, closing at a RevPAR of INR 1,675. Whilst performance of business hotels has yet to fully recover, leisure markets led by domestic travellers showcased some resilience in the last quarter of 2020.

 

As a result of the pandemic, hotels were compelled to reset their business plans. Standard operating procedures were drastically transformed with adaptation of available technology to encourage social distancing and increased focus on health safety and hygiene practices. New hotel developments slowed down, and most hotel openings were deferred by at least six months, according to JLL.

 

According to the STR data, Delhi’s hotel market witnessed a 32% PP* decline in occupancy and a 24.1% decline in Average Daily Rate (ADR), resulting in a 57.3% decline in RevPAR, in 2020 over 2019. Additionally, Bangalore’s hospitality market witnessed a 39-pp decline in occupancy and a 23.1% decline in ADR, resulting in a 67.7% decline in RevPAR, as compared to 2019. 

 

Brand signings in the country decreased by 38% over last year with 125 hotels and over 12,000 keys. The year saw a revival of demand firstly in the leisure destinations, with the maximum volume of signings in Tier-III cities

 

India has a strong market for robust domestic tourism

 

The tourism industry appears to have taken the hardest hit across the globe of all the affected industries in the Covid-19 pandemic. In wealthy economies and in certain countries with tourism reliant economies, it was observed that strong direct government support that aided hotel and restaurant industry and workforce.

 

“The post-pandemic world is bound to see more changes. Realignment of source markets, guest preferences, physical space planning will all be more dynamic and will be discussed more often in board rooms and team meetings. Capital assistance has emerged as the focal point and will remain the need of the hour to help hotels sustain till demand picks up.” says Jaideep Dang, Managing Director, Hotels & Hospitality Group, JLL India.

 

One in almost every five hotels signed in 2020 was a converted hotel: In India, hotel conversions had seen a consistent increase, nearly doubling from 33 conversions in 2016 to 65 in 2019. However, the conversions plummeted to just 29 hotels in 2020 under the impact of the COVID-19 pandemic. International hotel chains came at par with domestic chains in terms of converted hotel rooms, stacking at 50:50, showing increased flexibility to sign smaller sized hotels. There were no portfolio conversion deals concluded in the year. The erratic uncertainty in the market made the existing or committed hotel owners to adopt a further cautious approach than take any conclusive investment decisions in the year. With the gradual return in demand over the year or so, the hotel signings are expected to bounce back with some portfolio conversion deals as well.

 

Traction spreads to Tier II and Tier III cities: In line with a growing trend over the previous years, tier-III cities have seen the maximum number of brand signings. The average keys signed per hotel are 137, 97 and 79 in tier I, II and III cities respectively. In terms of the geographical preference in the 2020 signings among the domestic and the international operators, the ratio is 48:52, 43:57, 61:39 inventory volume-wise.

 

Hotel Investment Outlook

 

Hotel investment volume in 2020 witnessed a 60% global decline in comparison to 2019 due to the Covid-19 pandemic. The near zero cash flow environment made asset valuations very challenging also resulting in difficulty of obtaining debt financing. As a result, acquisitions were largely on hold in 2020. Hotel investment volume in India reached a record high in 2019 registering investment sales of USD 762 million.

 

Hotel Investment Sales Volumes in India

 

 

*Exchange rate – INR to USD estimated 2020

Source: JLL

 

Investment activity has been on a pause since March 2020 post the nationwide lockdown.  As the country gradually opened up with the unlock measures in phases since June 2020, the sentiment for evaluating hotel assets gained a little traction. The preference for assets in leisure markets increased given the strong recovery of leisure travel across the country since the third quarter of 2020. Investors were also keen on evaluating distressed opportunities in key markets, given last years' decline in corporate travel and its slow and steady recovery has impacted operational cash flows.

 

2021: Opportunistic optimism

 

Given the month on month increase in hotel room demand, there are emerging signs of investors evaluating hotel assets in the country, however valuations are at a discount to pre-Covid levels keeping in mind a slower demand and rate revival, especially for cities that are dependent on corporate and MICE segment and reduced profitability levels for the next 2-3 years.  Investors are mostly inclined to evaluate operational assets in key markets rather than greenfield or brownfield developments.

 

A few developers with strong balance sheets are also actively evaluating hotel deals. This trend has also been witnessed on a global level, where private equity firms and institutional investors have large pools of opportunistic capital to deploy for funding or acquiring quality assets in major cities which may become available for the reasons highlighted earlier.

 

Looking ahead

 

Looking ahead in 2021, we expect that the current COVID-19 pandemic will continue to have some impact on both commercial and leisure hotel markets across the country, however we expect leisure markets will lead the overall recovery with pent up domestic demand. Business travel which has always formed the lion’s share of the market will continue to see a rather muted recovery.

 

SpiceJet all set to resume operations from

SpiceJet all set to resume operations from May 25

·         To operate flights to 41 destinations including all UDAN routes

·         Airline well prepared for a safe & healthy take-off post lockdown

·         To implement strict in-flight & on-ground health and safety measures for passengers and staff

·         Will operate 204 daily and 1431 weekly flights

·         Bookings open

SpiceJet, the country’s favourite airline, is all geared up to resume operations post lockdown starting May 25, 2020 and is committed to providing the highest level of healthy, safe and secure flying experience with minimal contact to its passengers and staff. The airline will strictly adhere to social distancing norms and Standard Operating Procedures (SOPs) laid down by the government to ensure a top-level, clean and sanitised flying experience.

To start with, the airline will operate flights to 41 domestic destinations operating an average 204 daily and 1431 weekly flights. SpiceJet will be operating flights on all its UDAN routes.

SpiceJet has decided to introduce a slew of in-flight and on-ground modifications in line with the global best practices and Government SOPs to minimise human contact and ensure safe travel for its passengers.  

Ajay Singh, Chairman and Managing Director, SpiceJet said, “I am happy to announce the resumption of our passenger operations from May 25 after a two month-long lockdown-imposed hiatus. Your favourite airline is ready to spread its wings again and fly you safely to your destination. We are committed to providing the highest level of cleanliness and a safe, secure and healthy flying experience to our passengers and staff. We will strictly adhere to social distancing norms and SOPs laid down by the Government to ensure the best, the cleanest and the most sanitised flying experience.”

“Flying was and remains the safest mode of public transport. We eagerly await to welcome our guests onboard and to serve them again. I wish and hope that SpiceJet grows stronger in the times to come and contributes to the country’s economic might.”

SpiceJet has implemented the best-in-class cleaning procedures on all its aircraft in addition to disinfecting customer touch points and surfaces before every flight. The cleaning procedure for flights includes a thorough wipe down using an effective, high-grade, Boeing-approved disinfectant across aircraft interiors including the places customers touch most – the tray tables, seat covers, armrests, seatbelts, window shades and lavatories and their knobs.

All SpiceJet aircraft now have synthetic leather seats. These non-porous seats don’t allow the COVID-19 virus to penetrate inside them and can be easily wiped off compared to standard fabric seats.

Our planes are equipped with state-of-the-art air circulation systems and the cabin airflow in our aircraft rule out spread of any air-borne disease. The cabin air only flows from top to bottom and gets absorbed at the bottom for filtration. Cabin air is constantly exchanged with a mix of 50% outside air and 50% filtered air. This air exchange happens every 2-3 minutes to ensure the availability of fresh and clean air. All our aircraft use a high-efficiency (HEPA) filter (like those found in hospitals) which removes up to 99.9+% of airborne particles like viruses and bacteria.

All our crew members and ground services personnel will undergo a detailed health check-up and will be wearing protective gears to deliver a safe travel experience.  

As an added precaution, SpiceJet has decided to temporarily suspend Food and Beverage services on all its flights. Food and beverage consumption inside the flight is also not allowed and SpiceJet recommends that they be consumed at home or at the airport premises.  

Check out how SpiceJet & Boeing present the most advanced Air Circulation System
https://www.youtube.com/watch?v=Hnoix1mNr6g&feature=youtu.be

In sync with the best practices of social distancing, the airline will reduce the number of people in its airport coaches by 50% and has made web check-in mandatory thereby avoiding queues at airports. Besides, passengers will be allowed only one hand baggage and one check-in luggage (not more than 20 kg) which will have to be added during the web check-in process. Passengers will be encouraged to self-scan boarding passes and can also travel with their mobile boarding passes.

Following pre-boarding, we will board back-to-front by rows, but will space out customers to minimize crowding in the gate area and on the aerobridge.

Among other safety measures, wearing a mask and downloading the Aarogya Setu App will be mandatory for passengers. A temperature check will be done before entering the terminal building and only passenger with a green status on the Aarogya Setu App will be allowed. Passengers are advised to arrive at least three hours prior to departure as the check-in and luggage drop counters will be closed 60 minutes before the departure time and boarding gates will close 20 mins before departure time.

The health and safety of our customers and crewmembers is our top priority. In case a passenger does not feel well, it is advised they do not fly until cleared to travel by a doctor.

Since early January, SpiceJet has ensured that all its aircraft were deep cleaned extensively with Boeing approved disinfectants before each boarding. We, at SpiceJet are completely ready to fly our passengers and have put together extensive you measures to deliver industry-leading cleanliness, prioritize the well-being of our guests and innovate for a healthier tomorrow.