market research report : interactive whiteboard market in india 2012

Interactive Whiteboard Market – India

November 2012

2

SAMPLE Executive Summary

Installation, Application Support, Interface, Package Offered and Maintenance & After‐sales Services Products in Demand:Education Sector Enterprise Segment

Market Overview

Consumer Demands

Drivers and Challenges

Competition

Interactive whiteboard market in India is currently at a nascent stage and is expected to attain a steady growth to reach a sizeable market in the years to come

In 2011, the market size was valued at INR xx bn and is expected to reach INR xx bn by the end of 2015

The education sector accounts for a majority share of xx% followed by the enterprises segment with xx%

Major Vendors

SMART Technologies Promethean Aveco Genee Technologies

Drivers:

INTERACTIVE WHITEBOARD MARKET ‐ INDIA 2012.PPT

Growth in education sector

Growth in enterprise connectivity market

Government initiatives

Benefits from IWBs

Training requirement

Poor and un‐reliable infrastructure

Challenges:

3

•Introduction

•Market Overview

•Consumer Demands

•Cost Benefits

•Drivers and Challenges

•User Perspective

•Competition

•Solution Providers

•Strategic Recommendations

•Appendix


4

SAMPLE Interactive Whiteboard Market India – Overview


• Currently, the market for IWBs in India is at infancy and is expected to attain momentum in the coming 4‐5 years

• IWB penetration level hovers at less than xx%, however the government’s increasing interest on ICT is expected to push the levels significantly

• Competition in the market is stiff and players are constantly revamping their portfolio with innovative products

•Of late, the collaboration of IWBs with advanced connectivity features has become a prominent trend amongst players

Market Overview Competition

• Primarily the drivers for the market are:• A sizeable presence of schools and educational institutes • Significant push from Government of India (GoI) in the education sector

• Declining prices of the hardware units •Growth in the enterprise segment is also a key factor fueling growth in the market

• Some of the prime challenges which hurdles in the path of the market are:

• Constant training requirement for users

• Issues related connectivity and power cut

• The repair of inbuilt electronics within India is difficult

Drivers Challenges

Market Overview

5

SAMPLEInteractive Whiteboards – Market Scenario


• Currently, education sector in India creates majority of demand in the market

•Within the education sector, the maximum demand is generated from private &international schools Generally, schools with a pan India presence opt for IWBs

•Govt. initiatives driving the usage of ICT in schools is expected to provide further stimulus to the market

• Players offer packaged content solutions with education specific software & applications along with hardware as classroom solutions

•Although, enterprises account for a minority share of about 6% in the market, they are gradually gaining traction in the market

• Primarily, the need for one‐point, seamless and real‐time collaboration is fueling the demand for IWBs

• The sector is more hardware‐centric and demand arises mostly for display units and projectors Collaboration features such as remote meeting and conference have gained the maximum popularity in the enterprise sector

IWB – Education Sector Snapshot IWB – Enterprise Sector Snapshot

IWB – Market Size & Growth IWB Market Split – 20‐‐

d

20‐‐

0

20‐‐

a

b

c

20‐‐20‐‐20‐‐

INR bn xxx xxx

Other Educational Institutes include vocational training and coaching classes

4.9%

79.8%

15.3%

xxx xxx xxx

6

SAMPLE Interactive Whiteboard Market Drivers – Summary

Summary Impact

Growth in education sector

The massive presence of classrooms in India is boosting the market in manifold ways

Government initiatives

ICT oriented government initiatives for the education sector propel the ICT expenses by a large extent

Benefits from IWBs

The opportunity to leverage significant IWB benefits by users also plays a major role in increasing the uptake

Growth in enterprise connectivity

market

The market for Indian enterprise connectivity is experiencing a smooth and continual rise, thus paving way for IWB adoption


7

SAMPLE Driver (1/4) – Growth in education sector

• IWB market has gained a significant foothold in the education sector so far Continual growth & development in the sector will further strengthen this foothold

•Mainly, the pre‐school and K12 school segments are the prime consumers The segments shell out close to xx% of their ICT budget for the procurement of IWB and other audio video solutions

Education Sector – IWB Usage IWB Expenses – Education Sector

Market Size – Schools & CollegesMarket Size – Other Educational

Institutes

1.41.1

0.90.80.7

0.0

0.5

1.0

1.5

20‐‐20‐‐20‐‐20‐‐

INR bnxx

20‐‐

0

20‐‐

yy

b

d

c

a

INR bn

xxx

20‐‐

yy

xx

20‐‐

yy

xx

20‐‐

yy

xx

20‐‐

yy

xx

xx

Other Educational InstitutesSchools & Colleges


20‐‐

INR tn

a

b

c

0

xx

20‐‐20‐‐20‐‐20‐‐

CollegesSchools

8

SAMPLE Challenges (1/2) – Poor and Unreliable Infrastructure(1/2)

Countries with Slowest Internet Speeds (2011)

Poor internet services

• Poor infrastructural facilities in the form of retarded internet services in India is deemed to be a significant challenge for the growth

•A slow internet connection works against growth since it pulls back people from opting for IWBs which mostly connect via internet in order to collaborate with other devices in multiple locations

Average Internet Speed – India (2011)

Rank Countries

1 Country A

2 Country B

3 Country C

4 Country D

5 Country E

Narrowband Penetration – India (2011)

Bangalore & Kolkata

New Delhi & Mumbai

Mbps

a

0.0

b

c

Hyderabad

xxx

Narrowband

xxx% internet connections have speeds slower than

256 kbps


9

SAMPLE Challenges (1/2) – Poor and Unreliable Infrastructure(2/2)

Size of the bubble represents the median ratio of actual download speed to the download speed claimed

Upload & Download index values are the rolling mean throughput in Mbps over the past 30 days, where the mean distance between client and server is less than 300 miles

97.25

95.10

‐20

‐10

0

10

20

30

40

50

60

29

Upload Index(mbps)

3231302827262524232221201918171615141312111098765

Download Index(mbps)

43210‐1‐2

80.47

98.47

BrazilIndiaChinaRussia

Comparison of Internet Connection – BRIC Nations


10

SAMPLE Major Public Companies ‐ Summary

Note: All figures are in INR mn and are based on the latest financials available

1,335,976.1

8,770.8

58,900.4

3,005.2

‐300,000

0

300,000

600,000

‐400,000 ‐200,000 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

Total income

Net Profit/Loss

xxx

xxxxxx

xxx

Size of the Bubble represents Market Capitalization in INR mn

xxxxxxxxxxxx


11

SAMPLE Public: Foreign Company – xxx. (1/3)

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

Category Products/Services

Products xxx

Name Designation

New Delhi

Head Office


12

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR 0.2 mn in FY 2012, as compared to net profit of INR 0.1 mn in FY 2011

• The company reported total income of INR 6.1 mn in FY 2012, as compared to INR 5.1 mn in FY 2011

• The company earned an operating margin of 4.16% in FY 2012, a decrease of 0.57 percentage points over FY 2011

• The company reported debt to equity ratio of 2.40 in FY 2012, anincrease of 13.29% over FY 2011

Key Financial Performance Indicators

Indicators Value (dd/mm/2012)Market Capitalization (INR mn)* 1,335,976.1Total Enterprise Value (INR mn)* 3,189,666.4EPS (INR) 67.54PE Ratio (Absolute) 6.31

Particulars y‐o‐y change (2012‐11)

2012 2011 2010 2009

Profitability RatiosOperating Margin ‐0.57 4.16% 4.73% 2.25% 1.27%

Net Margin 0.96 3.50% 2.54% ‐1.19% ‐7.85%

Profit Before Tax Margin 1.03 5.63% 4.60% 0.71% ‐2.89%

Return on Equity 2.73 12.52% 9.78% ‐4.72% ‐36.13%

Return on Capital Employed ‐0.95 7.77% 8.72% 4.02% 2.66%

Return on Working Capital 3.58 33.02% 29.45% ‐12.67% ‐177.53%

Return on Assets 1.09 3.69% 2.60% ‐1.19% ‐8.37%

Return on Fixed Assets 5.83 17.14% 11.31% ‐4.82% ‐32.89%

Cost RatiosOperating costs (% of Sales) 0.18 75.31% 75.12% 76.89% 78.81%

Administration costs (% of Sales)

‐6.57 16.16% 22.73% 23.83% 22.66%

Interest costs (% of Sales) 0.01 ‐0.29% ‐0.30% ‐0.33% ‐0.37%

Liquidity RatiosCurrent Ratio 4.79% 1.26 1.20 1.21 1.10

Cash Ratio 80.04% 0.49 0.27 0.30 0.29

Leverage RatiosDebt to Equity Ratio ‐13.29% 2.40 2.76 2.95 3.31

Debt to Capital Ratio ‐6.13% 0.42 0.45 0.48 0.51

Interest Coverage Ratio ‐18.00% ‐14.65 ‐17.87 ‐7.70 ‐3.76

Efficiency RatiosFixed Asset Turnover 20.28% 4.77 3.97 3.62 3.79

Asset Turnover 12.54% 1.03 0.91 0.90 0.97

Current Asset Turnover 9.54% 1.87 1.71 1.68 1.79

Working Capital Turnover ‐10.96% 9.19 10.33 9.53 20.47

Capital Employed Turnover 1.56% 3.48 3.43 3.55 4.16

Public: Foreign Company – xxx. (2/3)

Improved Decline

Net Profit/LossTotal Income

6.15.14.3

5.1

0

2

4

6

8

-0.5

0.0

0.5INR mn INR mn

2012201120102009

* Data taken as on 31st Oct, 2012


13

SAMPLE Key Business Segments Key Geographic Segments

Key Recent Developments

Public: Foreign Company – xxx. (3/3)

Description News

Overview

Interactive Products

100%


0%

50%

100%

2012

5,970,070

9%

91%

2011

5,011,188

10%

90%

2010

4,309,393

10%

90%

2009

5,123,288

11%

89%22%

5%5%4%4%8%9%9%9%

8%8%9%

0%

50%

100%

2011

8%

57%

2010

19%

59%

2009

19%

59%

2012

21%

57%

xxx

xxx

xxx

xxx

xxxxxxxxx

14

SAMPLE Major Solution Providers – Education Sector


Key Solution Providers India – Market share

5%

21%

74%

xxx

xxx

xxx Edurite Classteacher Navneet

NIITHCL

InfosystemsManipal K‐12

Sundaram

Others Include

Solution Provider Solutions Key Products

Classteacher ePathshala Interactive Whiteboard

Educomp Smartclass Interactive Whiteboard

Everonn iSchool Interactive Whiteboard

HCL Infosystems Digiclass Interactive Whiteboard

Manipal K12 Digiclass Interactive Whiteboard

Navneet eSENSE Portable built‐in projector and content

Next Education Teachnext Portable built‐in projector and content

NIIT e‐Guru Interactive Whiteboard

Sundaram e‐Class Portable projector, handheld device, pen‐drive and other acceossries

15

Thank you for the attentionThe Interactive Whiteboard Market – India 2012 report is a part of Netscribes Information Technology Industry Series.For more detailed information or customized research requirements please contact:

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