market research report : glass market in india 2014 - sample

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Glass Market – India

August 2014

2

Executive Summary

Market

Drivers & Challenges

Technology Trends

• Blow and Blow • Press and Blow

Drivers – Growing use in packaging industry – Qualitative aspect – Growth in real estate sector – Growth in automobile sector – Growing preference for value added glass – Glass widely used in solar products – Glass used for energy conservation – Cost advantage

Challenges – Rise in price of soda ash – Growing alternatives of glass – Reusable nature of glass – Competition from Chinese products

EXIM • India has a strong position in container glass market wherein export exceeds import • In container glass articles for conveyance and packaging registers the highest export as well as import

• The Indian glass market is currently valued at INR x1 bn and is expected to reach INR x2 bn in 2018 • The Indian container glass market is valued at INR y1 bn and is expected to reach INR y2 bn in 2018 • The Indian flat glass market is expected to reach a1 lakh tonne by 2014 growing at a rate of b1% • India exhibits a low glass consumption in comparison to other countries

Competition

GLASS MARKET IN INDIA 2014.PPT

Major Players

Public Companies Company A Company B Company C

Private Companies Company D Company E Company F

3

•Macroeconomic Indicators

•Introduction

•Market Overview

Container Glass

-Green Potential

Flat Glass

-Emerging Types of Flat Glass

•Export Import

•Distribution Channel

•Drivers & Challenges

• Trends

Technology Trends

Key Trends

•Competitive Landscape

•Strategic Recommendation

•Appendix


4

Economic Indicators (1/3)

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15

b2

a2

Q1

d1

c1

b1

a1

Q4

c4

b4

a4

Q3

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b3

a3

Q2

d2

c2

INR tn

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Jul 2013 - Aug 2013

p

%

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

s

Sep 2013 - Oct 2013

r

Aug 2013 - Sep 2013


5

SAMPLE

Glass as a product has several uses but it is used the most in the construction and packaging industry

GLASS

•Float glass was the biggest innovation that revolutionized the glass industry

•With the invention of float glass process, glass application expanded and currently dominates the construction, automotive and mirror industries

•Further processing of float glass leads to various other types of glass such as Sheet Patterned Wired

Float Glass

•Packaging industry is highly influenced by the container glass

•Even though there are several other packaging alternatives, container glass is preferred as it is healthy, hygienic and eco-friendly

•Sectors demanding container glass include beer and spirits segment, food and beverages industry, pharma industry as well as cosmetics and perfumery

Container Glass

• It includes the optical glass and fibre glass •Optical glass have wide application in lens used in eyeglasses, microscopes,

telescopes, camera and many instruments for factories and laboratories •Fibre glass is used in making glass yarn, tape, cloth and mats along with

electrical insulation, chemical filtration, cutlery and firefighters' suits

Other Glass

Container glass forms the largest segment in the glass industry due to a strong demand from the end user segment followed by flat glass and other glass segments


6

The Indian glass market is progressing at a steady rate due to its wide applications across sectors

Market Overview: India Market Size and Growth (Value wise)

• Glass market in India will show a healthy growth rate amidst a strong GDP performance

• The growth rate of Indian markets is more than global growth rate as the associated glass using sectors is witnessing a robust growth

• However, per capita consumption of glass is much less than other developed countries which outlines the growth potential of glass sector in India

• Flat glass is exhibiting tremendous growth potential in India which is attracting existing container glass manufacturers as well as new players

Market- Segmentation (2013)

b2

b1 b3

Segment 3 Segment 2 Segment 1 t

s

r

q

p

kg

Other Developed Countries

a3

USA

a2

India

a1

Per Capita Consumption – Comparison (2013)


t

s

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p

INR bn

X%

2018e

a6

2017e

a5

2016e

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2015e

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2014e

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2013

a1

7

Stupendous growth of the container glass market is primarily driving the glass market in India

Market Size and Growth (value wise) Market Overview: Container Glass

Per Capita Consumption Growth in Production


• Container glass forms the largest market segment in the overall glass market

• Indian packaging industry has been growing, aided by a number of factors Increasing urbanization and rise in the middle class

population is increasing the demand for packaged products

• Container glass market is capital intensive which is an entry barrier for new players to enter the market

• Container glass packaging solutions can undergo multiple cycles of reuse

t

s

r

q

p

TPD

20--

a6

20--

a5

20--

a4

20--

a3

20--

a2

20--

a1

t

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kg

20--

a6

20--

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20--

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20--

a3

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a1

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INR bn

X%

2018e

a6

2017e

a5

2016e

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2015e

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2014e

a2

2013

a1

8

Market Size and Growth (Value wise)

• Flat glass is produced by float process and is

processed further to add certain qualities and

specifications

• Flat glass helps in reducing greenhouse gas emissions

as well as helps in energy conservation via its

architectural glass products

• This market has benefited from the booming

automotive industry

• Rise in demand for architectural glass in the following

years is expected to boost the market

Market Overview: Flat Glass

Float Glass : Domestic Sales

Growth in Production

The growth in glass market is being fostered by the growth of the flat glass market


t

s

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INR bn

X%

2018e

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2017e

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2016e

a4

2015e

a3

2014e

a2

2013

a1

t

s

r

q

p

TPD

20--

a6

20--

a5

20--

a4

20--

a3

20--

a2

20--

a1

t

s

r

q

p

TPD

20--

a6

20--

a5

20--

a4

20--

a3

20--

a2

20--

a1

9


•Introduction

•Market Overview

Container Glass

-Green Potential

Flat Glass


•Export Import



• Trends

Technology Trends

Key Trends



•Appendix


10

Container glass makes a valuable contribution to export earnings with maximum contribution by packaging articles

Export Import: Container Glass

Container Glass Import Components- 2014 Container Glass Export Components- 2014

x2 x5

x4

x1

x3

Note: Following HS Codes were used: 70101000; 70109000; 70179020; 70179030; 70179090


a

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u

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c

e

f

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INR bn INR bn

20-- 2014

n4

m4

e4

20-- 2013

n3

m3

e3

20--

n2

m2

e2

20--

n1

m1 e1

EXIM Snapshot

• India has an impressive performance in export of container glass products

• It has persistently enjoyed a positive net trade value of an average of INR 4.7 bn over the past four years

• Glass articles used for conveyance and packaging comprise the highest valued segment in import as well as export

Import Export Net Trade

x2 x5

x4

x1

x3

11


•Introduction

•Market Overview

Container Glass

-Green Potential

Flat Glass


•Export Import



• Trends

Technology Trends

Key Trends



•Appendix


12

Drivers & Challenges- Summary

Drivers

Growing use in packaging industry

Growth in real estate sector

Better packaging quality

Growth in automobile sector

Growing preference for value added glass

Glass is widely used in solar products

Glass used for energy conservation

Cost advantage

Challenges

Rise in price of soda ash

Growing alternatives of glass

Competition from Chinese products

Reusable nature of glass


13


•Introduction

•Market Overview

Container Glass

-Green Potential

Flat Glass


•Export Import



• Trends

Technology Trends

Key Trends



•Appendix


14

Technology Trends – Summary

Blow and Blow Press and Blow


15


•Introduction

•Market Overview

Container Glass

-Green Potential

Flat Glass


•Export Import



• Trends

Technology Trends

Key Trends



•Appendix


16

Trends – Summary

Key Trends

Demand for value-added products is growing for

basic glass

Investment and capacity expansion

Decorative glasses with digital print technology


17


•Introduction

•Market Overview

Container Glass

-Green Potential

Flat Glass


•Export Import



• Trends

Technology Trends

Key Trends



•Appendix


18

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact x

Impact x

Impact x

Impact x

Impact x

*Note: BEP (Break-even point)


19

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

10

20

30

40

%

Company C

b3 a3

Company B

b2 a2

Company A

b1

a1

Operating Margin Net Margin

• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3%

• Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies


20

SAMPLE Public: Domestic Company – Company 1 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Name Designation

Person 1 MD and Executive Director

Person 2 VC and VC of Share Transfer Committee

Person 3 Director

Person 4 Director

Head Office Mumbai

Category Products/Services


21

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012

• The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012

• The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012

• The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012

Key Financial Performance Indicators

Indicators Value (20/03/2014)

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Net Profit/Loss Total Income

e

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c

b

a

s

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p

2013

a4

z4

2012

a3

z3

2011

a2

z2

2010

a1

z1

Public: Domestic Company – Company 1 (2/5)


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SAMPLE Public: Domestic Company – Company 1 (3/5) Key Business Segments Key Geographic Segments

A%

B%

C%

2013

b4%

2012

b3%

2011

b2%

2010

b1%

a1% C%

B%

A%

2010

y1%

x1%

2013

x4%

2012

x3%

2011

x2%

Region 2 Region 1

Business Highlights

Segment 2 Segment 1

Description News

Overview • The company has operations in Country A, Country B and Country C that offers treatment for acute and

chronic diseases in primary, secondary and tertiary care sectors

Services

• Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging, gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries and transplantation

• Operates retail pharmacy outlets all across the country


23

SAMPLE

T O

W S

Public: Domestic Company – Company 1 – SWOT Analysis (5/5)


24

SAMPLE Private: Domestic Company – Company 2 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Person 4 Director

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation Head Office

Category Products/Services

Ready Meals

Instant Mixes

Others

Mumbai


25

SAMPLE Private: Domestic Company – Company 2 (2/5)

Shareholders of the Company Ownership Structure

Name No. of Shares held

23.6%57.4%

19.0%

Segment

Segment

Segment


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SAMPLE Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Private: Domestic Company – Company 2 (3/5)

Improved Decline

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2011, as

compared to net profit of INR x2 mn in FY 2010

• The company reported total income of INR x3 mn in FY 2011,

registering an increase of x4% over FY 2010

• The company earned an operating margin of x5% in FY 2011,

an increase of x6 percentage points over FY 2010

• The company reported debt to equity ratio of x7 in FY 2011, a

decrease of x8% over FY 2010

Net Profit/Loss Total Income

a

t

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q

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p

b

c

d

e

b4

a4

2011 2008

a1

b1

2010

a3

b3

2009

a2

b2


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SAMPLE

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Description News

Overview • Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in

Country D

• Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3

Facilities • Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery

• Provides advanced medical diagnostics and treatment with personal care

Recognitions • Obtained NABH accreditation within one and a half years of beginning operation in India

• Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited

Business Highlights

Private: Domestic Company – Company 2 (3/5)


28

SAMPLE

T O

W S

Private: Domestic Company – Company 2– SWOT Analysis (5/5)


29

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