market research report :motors market in india 2013
DESCRIPTION
For the complete report, get in touch with us at : [email protected] The new report, ‘Motors Market in India’, states that expansion in the Indian power sector will drive the demand for motors in the Indian market. Motors are a part of the transmission and distribution equipment industry. The Indian motors industry is characterized by the presence of a diverse product range and is a highly fragmented market. Key hubs for the production of motors are concentrated in selected regions of the country. Domestic demand for motors also varies across the regions. Export – Import of motors in terms of volume and value varies across the different motor segments. Some specific segments of motors are witnessing a decline in import dependence while some are primarily import intensive. The development of the motors market is supported by rise in Infrastructure investments in India. Industrial sector growth sector is also expected to stimulate the demand for motors. Developments in the power sector will enhance the requirement of motors. Growth in consumer durables will also aid the sustainable development of the Indian motors industry. Increase in usage of pumps in the agricultural sector will drive the demand for motors in the market. Robust automotive sector in India will fuel the demand for motors in the domestic market. Healthy economic outlook of the Indian economy will support the development of the domestic motors market.TRANSCRIPT
Motors Market IndiaMotors Market – India
July 2013
Executive Summary
MarketMotors find wide application in numerous key sectors of the economyRobust growth of the end user industries is expected to accelerate the demand for motors in the Indian market
Drivers & Challenges
Drivers Rise in Infrastructure Investments
Industrial Growth
Developments in the Power Sector
ChallengesVolatile Raw Materials Prices
Lack of Capacity Utilization
Consumer OutlookChallenges
Growth in Consumer Durables
Agricultural Pumps Demand
Robust Automotive Market
Healthy Economic Outlook
Trends Energy Efficient Motors
Customer Services
y
Competition
Major Players
Company A Company B
Company C Company D
2
p y p y
Company E Company F
MOTORS MARKET IN INDIA 2013.PPT
•Macro Economic Indicators•IntroductionM k t O i•Market Overview•Motors Demand Scenario•Motors Manufacturing HubMotors Manufacturing Hub•Supply Chain Analysis•Export ‐ Import•Drivers and Challenges•Government Initiatives & RegulationsT d•Trends•Competitive Landscape•Strategic Initiatives
3
Strategic Initiatives•Appendix
MOTORS MARKET IN INDIA 2013.PPT
SAMPLE Economic Indicators (1/3)
Gross Fiscal Deficit: Monthly
600
500
INR bnx6
x5x3500
400
300
200
100
x4
x3
x2
x1
Exchange Rate: Monthly
100
0Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐
g y
55.0x2
USD/INR
x1
54.0
54.5 x3 x6
x2x5
x4
4
53.5Month 20‐‐Month 20‐‐ Month 20‐‐ Month 20‐‐Month 20‐‐Month 20‐‐
MOTORS MARKET IN INDIA 2013.PPT
Expansion of the Indian power sector will drive the growth of the Transmission & Distribution equipment industryT&D Industry ‐ Overview T&D Market Size
Transmission and distribution industry in India is heterogeneous and engages in the
INR bn
Z%x5
production of a wide range of equipment
Electrical Equipment Market Size
x5x4x3
x2x1
Sector INR bn ( )
T&D Market Share (20‐‐‐‐)
0
200‐‐‐‐200‐‐‐200‐‐‐‐200‐‐‐‐200‐‐‐
Sector INR bn (‐‐‐)
Boilers x1
Turbines x2
Generators x3
x7x6
x1 G
F
E
D
C
B
ACables x4
Transmission Lines and Conductors x5
Transformers x6
Switchgear & Controlgear x7
x5
4
x2
Switchgear & Controlgear x7
Rotating Machines x8
Energy Meters x9
Capacitors x10
5MOTORS MARKET IN INDIA 2013.PPT
x4
x3Other Electrical Equipment x11
Total X
AC motors find greater preference for a wide variety of applications in industrial to domestic sectors
AC Motors ‐ Overview
‘000 KW Segment BSegment A000 KWx9
a9
x8
a8
x7
a7
x6
a6
x5
a5
x4
a4
x3
a3
x2
a2
x1
a1
Segment BSegment A
b9b8b7b6b5b4b3b2b1
a1
0
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐20‐‐20‐‐
• This segment comprises of A motors and B motors
• It offers the advantages of simple design, reliable operations and easily found replacements
• Segment A motor is the least expensive motor for applications that need more than x HP of power owing to the simple d i f h
6
design of the motor
MOTORS MARKET IN INDIA 2013.PPT
SAMPLE Motors Market – Segments (1/2)
Motors Market – Volume Share (1/2)
HT Motors Flame Proof Motors
x1x4
x3x2
x2
BA
x1
DCBA
•Total volume of HT Motors in the market is around X units
• Segment A motors accounted for the majority of the
• Total volume of Flame Proof Motors in the market is around Y units
• Flame Proof Motors of frame size A accounted for
7
• Segment A motors accounted for the majority of the market in 20‐‐
• Flame Proof Motors of frame size A accounted for highest share of the market in 20‐‐
MOTORS MARKET IN INDIA 2013.PPT
New demand dominates the procurement demand for motors across the domestic market
Motors Market – Demand Share (20‐‐)
Regional Ranking ‐ Demand Wise
x1
West
x2
Replacement DemandNew Demand Replacement DemandNew Demand
x1
x2
x1
x2
South & East
North
8MOTORS MARKET IN INDIA 2013.PPT
Supply Chain Analysis (1/2)
Purchase Decision Influencers
A B C D
Motors Market – Share of Sub‐Contracting
•Point 1
x2
•Point 1•Point 2•Point 3
x1
9
Segment BSegment A
MOTORS MARKET IN INDIA 2013.PPT
SAMPLE Exports and Imports (Value‐wise) (HS Code – 850110)
Exports
INR bnZ%
x5x4
0
x1
x5
x3
x2
Imports
20‐‐‐20‐‐‐20‐‐‐200‐‐‐200‐‐‐
INR bn
x5
Z%
x3x1
x4
x2
0
20‐‐20‐‐‐ 20‐‐‐20‐‐‐ 20‐‐‐
10MOTORS MARKET IN INDIA 2013.PPT
SAMPLE Exports and Imports (Country‐wise) (HS Code – ‐‐‐‐‐‐‐‐‐)
Exports (Value) Exports (Volume)
x6 Country 1x2
x3
x4 Country 1x1
x5
x4
Country 3
Country 2
Country 5
Country 4
x
x5 x1
Country 5
Country 4
Country 3
Country 2
x3 x2Country 6 x6 Country 6
Imports (Value) Imports (Volume)
x61
Country 2
Country 1 x6
x5 1Country 2
Country 1
x5
x4
x1
Country 6
Country 5
Country 4
Country 3 x4
x3
x1
Country 6
Country 5
Country 4
Country 3
11
x3 x2 x2
MOTORS MARKET IN INDIA 2013.PPT
Drivers & Challenges – Summary
Drivers
Rise in Infrastructure Investments
Industrial Growth Challenges
Developments in the Power Sector
Growth in Consumer Durables
Volatile Raw Material Prices
Lack of Capacity Utilization
Agricultural Pumps Demand
Robust Automotive Market
Consumer Outlook
Healthy Economic Outlook
12MOTORS MARKET IN INDIA 2013.PPT
Rising motors demand owing to rapid industrial growth plays a key role in the development of motors market
Industrial Growth (1/5)
• Finding 1 Sub finding 1
Impact
• Finding 2
Finding 3
Industry – Gross Capital Formation Segment‐wise Industry – Share in GDP Segment‐wise
INR bn
x5x4
x3x1
DCBAx6x5
5
x4
a4
x3
a3
x2
a2
x1
a1
b5
a5
b4
a4
b3
a3
x2
b2
a2
b1
a1
c6
b6
a6
c5
b5
a5
c4
b4
a4
c3
b3
a3
c2
b2
a2
c1
b1
a1
13
0
200‐‐
d5c5
200‐‐
d4c4
200‐‐
d3c3
b3
200‐‐
d2c2
b2
200‐‐
d1c1
0
20‐‐e
d6
20‐‐
d5
20‐‐
d4
20‐‐
d3
20‐‐
d2
20‐‐
d1
MOTORS MARKET IN INDIA 2013.PPT
Motors market is suffering from overcapacity owing to delay in projects coupled with low capacity utilization
Lack of Capacity Utilization Impact
• Point 1
Motors Production Capacity Utilization
• Point 2
• Point 3
x2
x1
MWA B
0
x2
T&D Equipment Capacity Utilization Segment‐wise (20‐‐‐)%
54x3x2x1
20‐‐
0
x9x8x7x6x5x4x3
14
0
IHGFEDCBA
MOTORS MARKET IN INDIA 2013.PPT
…order to promote the adoption of energy efficient motors and reduce energy costs
Focus on Energy Efficiency (2/2)
Motors ‐ Life Cycle CostsEnergy Efficiency Motors Energy Saving Potential
SectorConservation Potential
Energy Handled by Motors100
%
c1 b3 c3b2 c2b1
A B C
Energy Efficiency Motors ‐ Energy Saving Potential
Sector A x1 y1
Sector B x2 y2y
Sector C x3 y3a3a2a1
Sector D x4 y4
0
y3y2
kW
y1Fi di 1
15
yyy
x1 Years x2 Years x3 YearsFinding 1
MOTORS MARKET IN INDIA 2013.PPT
SAMPLE Standards governing the motors industry has been revised from time to time
Motors Industry ‐ ‐‐‐‐
X 1: Performance of Y1 Motors X2 ‐ Performance of Y2 Motors
•Point 1•Point 2•Point 3
•Point 1 •Point 2•Point 3
•Point 1•Point 2
16
Indian Standard X has been revised and is based on the Z Standard Y
MOTORS MARKET IN INDIA 2013.PPT
Demonstration of X (1/2)
X Values for Y Specified in Z ‐ Comparison
Point 1
ZX1 X2 X3 X4 X5
Y1 Y2 Y3 Y4 Y4
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐
17MOTORS MARKET IN INDIA 2013.PPT
Government focus on increasing the penetration of electric supply in rural as well as urban localities via various…
Rural Electrification (1/2)
Point 1
Plan A ‐ Xth and Yth Z Plan
• Point 1
• Point 2
• Point 3
Point 1
Point 2
Point 3
18
Note: REC refers to Rural Electrification Corporation Limited
Point 4
MOTORS MARKET IN INDIA 2013.PPT
Power Transmission Network Expansion – Z Plan
Category A B C D
X1
Segment 1 a1 a2 a3 a4
S 2 b1 b2 b3 b4Segment 2 b1 b2 b3 b4
Segment 3 c1 c2 c3 c4
Segment 4 d1 d2 d3 d4
Segment total E F G H
X2
Segment 1 a1 a2 a3 a4
S t 2 b1 b2 b3 b4Segment 2 b1 b2 b3 b4
X
0
INR bn
a120‐‐ b1 Xc1
A
B
C
19
a120 b1 Xc1 C
MOTORS MARKET IN INDIA 2013.PPT
Trends – Summary
Energy Efficient Motors
Customer ServicesTrends
20MOTORS MARKET IN INDIA 2013.PPT
Motors industry in India is focusing on the adoption of Energy Efficient (EE) motors …
•Point 1
Energy Efficient Motors (1/3)
Point 1
Factors Driving EE Motors Adoption
X1 X2 X3 X4
P i t 1• Point 1
• Point 2
21MOTORS MARKET IN INDIA 2013.PPT
Competitive Benchmarking (1/5)
Public Trading Comparables (FY 20‐‐)
Company 1 Company 2 Company 3 Company 4
Market Capitalization (INR mn)
‐ ‐ ‐ ‐
Share Price (INR) ‐ ‐ ‐ ‐
EV/EBITDA (x) ‐ ‐ ‐ ‐
/EV/Revenue (x) ‐ ‐ ‐ ‐
PE Ratio ‐ ‐ ‐ ‐
22MOTORS MARKET IN INDIA 2013.PPT
Public: Domestic Company – Company A (1/4)
Company Information Offices and Centres – India
Corporate Address Address
Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Tel No. 91
Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website website
Year of Incorporation 19‐‐
Products and Services
Ticker Symbol ‐‐‐‐‐‐
Stock Exchange ‐‐‐
Key People
Products and Services
Category Products/Services
Segment Product 1, product 2, product N D i ti
Head Office
3,………………….
Others Product 1, product 2, product 3………
Name Designation
Person 1 Designation
Person 2 Designation
Person 3 Designation
23
, p , pPerson 4 Designation
MOTORS MARKET IN INDIA 2013.PPT
i i l S h K i
Public: Domestic Company – Company A (2/4)
Financial Snapshot Key Ratios
Particulars y‐o‐y change
(20‐‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability RatiosOperating Margin 0.36 4.05% 3.69% 3.48% 9.67%
Net Profit/LossTotal Income
60000
80000
3 000
4,000y3 y4
INR mn INR mny1
y2
Net Margin ‐0.61 1.85% 2.47% 1.00% 5.64%
Profit Before Tax Margin ‐0.80 2.78% 3.58% 1.58% 8.39%
Return on Equity ‐1.86 5.42% 7.28% 2.61% 14.63%
Return on Capital Employed 0.95 11.82% 10.87% 9.11% 25.10%
Return on Working Capital 5.21 31.23% 26.02% 13.98% 37.62%
Return on Assets 0.37 4.75% 4.38% 3.82% 10.95%
0
20000
40000
60000
0
1,000
2,000
3,000
x3 x4
20‐‐ 20‐‐
x1 x2
20‐‐ 20‐‐
Financial Summary
• The company earned a net profit of INR x mn in FY 20‐‐, as compared to net profit of INR y mn in FY 20‐‐
• The company reported total income of INR y mn in FY 20‐‐, registering an increase of % over FY 20
Return on Fixed Assets 0.78 25.83% 25.05% 27.79% 78.13%
Cost RatiosOperating costs (% of Sales) ‐0.34 95.94% 96.29% 96.51% 90.30%
Administration costs (% of Sales)
0.56 15.73% 15.17% 13.30% 11.86%
Interest costs (% of Sales) 0 11 0 49% 0 38% 0 27% 0 41%registering an increase of z% over FY 20‐‐
• The company earned an operating margin of y1 % in FY 20‐‐, an increase of x2 percentage points over FY 20‐‐
• The company reported debt to equity ratio of z1 in FY 20‐‐
Interest costs (% of Sales) 0.11 0.49% 0.38% 0.27% 0.41%
Liquidity RatiosCurrent Ratio ‐2.18% 1.25 1.28 1.47 1.52
Cash Ratio ‐63.75% 0.03 0.07 0.18 0.17
Leverage RatiosDebt to Equity Ratio ‐ 0.13 0.00 0.00 0.00
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) ‐Total Enterprise Value (INR mn) ‐EPS (INR) (21/3/2013)
Debt to Capital Ratio ‐ 0.11 0.00 0.00 0.00
Interest Coverage Ratio ‐16.15% 8.22 9.80 12.69 23.75
Efficiency RatiosFixed Asset Turnover ‐5.59% 6.37 6.74 7.97 8.05
Asset Turnover ‐0.78% 1.17 1.18 1.10 1.13
Current Asset Turnover 1 19% 1 56 1 54 1 29 1 32
24
EPS (INR) (21/3/2013) ‐PE Ratio (Absolute) (21/3/2013) ‐
Current Asset Turnover 1.19% 1.56 1.54 1.29 1.32
Working Capital Turnover 9.86% 7.70 7.01 4.01 3.88
Capital Employed Turnover 12.00% 2.93 2.61 2.94 2.28Improved Decline
MOTORS MARKET IN INDIA 2013.PPT
Public: Domestic Company – Company A(3/4)
Key Business Segments Key Geographic Segments
100%
CEBDA
100%
BA
0%
50%
100%
d1c1
b1
a1
e4d4
c4b4
a4
e3d3
c3b3
a3
e2d2
c2b2
a2
e1 0%
50%
y4
x4
y3
x3
y2
x2
y1
x1
Business Highlights
%
20‐‐20‐‐20‐‐20‐‐
0%
20‐‐20‐‐20‐‐
y
20‐‐
y
Description News
Overview
• Company A operates in the field of X and caters to the utility and the industrial end user segments
•Manufacturing and production activities of the company are divided into x global divisions•Manufacturing and production activities of the company are divided into x global divisions viz. a1, a2, a3 , a4 and a5
Manufacturing Facilities •Operations network of the company includes x1 manufacturing facilities, more than x2 marketing offices x3 service centers x4 logistics warehouses x5 Power & Automation
25
and Networkmarketing offices, x3 service centers, x4 logistics warehouses, x5 Power & Automation Engineering Centers and a network of over x6 channel partners
MOTORS MARKET IN INDIA 2013.PPT
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MOTORS MARKET IN INDIA 2013.PPT