market research report :sanitaryware market in india 2012

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Sanitaryware Market – India

November 2012

2

Executive Summary

Market

Drivers & Challenges

Competition

Indian sanitaryware market will reach INR x bn in 20‐‐‐‐, growing at a CAGR of y%, from INR z bn in 20‐‐ ‐ ‐‐

Unorganized sector accounts for ~x% of the sanitaryware market in terms of volume

Trends Premium Sanitaryware Segment Increasing Foreign Presence Emergence of Concept Washrooms Various Green Initiatives

Drivers:

• High Income and Changing Lifestyle

• Real Estate Boom

• Replacement Demand

• Untapped Market Potential

• Increasing Awareness Among Consumers

Government Initiatives

Total Sanitation Campaign & 12th Five Year Plan (2012‐17) Public Toilet Schemes Housing Policies 100% FDI in Real Estate

Challenges:

• Rise in Power and Fuel Costs

• Huge Unorganized Sector

• Seasonality

Major Brands

Company 1 Company 2 Company 3 Company 4 Company 5

SANITARYWARE MARKET IN INDIA 2012.PPT

3

•Market Overview

•Export‐Import

•Drivers & Challenges

•Government Initiatives

•Trends

•Competition

•Strategic Recommendations

•Appendix


4

Government target to provide adequate sanitation within next 5 years will ensure sustained growth of the market

Market Size and Growth

Sanitaryware Market ‐ Overview

• Indian sanitaryware market accounts for x% of the global sanitaryware production and ranks x in terms of volume within the X region

• Improved living standards and increasing awareness level among the consumers will result in rapid growth of the sanitaryware market

0

10

20

30

40

50

INR bn

Z%

20‐‐e

x7

20‐‐e

x6

20‐‐e

x5

20‐‐e

x4

20‐‐‐‐e

x3

20‐‐

x2

20‐ ‐ ‐‐

x1


5

As of 20‐‐, less than x% of the total households in y states were equipped with basic latrine facilities

Basic Amenities Scenario (20‐‐)

Share of Households Having Latrine Facility Within Premises

States Share States Share States Share

State ‐ State ‐ State











State ‐ State ‐

Top 5 states in India in terms of availability of latrine facilities in 20‐‐


6

Rise in availability of basic sanitation facilities in India presents a huge opportunity for the sanitaryware market

Rural Latrine Facility Within Premises

Urban Latrine Facility Within Premises

• Till 20‐‐, only x% of the total Indian households had access to latrine facilities within the premises

•Although availability of latrine facilities in rural areas grew at a CAGR of y% over 20‐‐, the difference in availability of such facilities in rural and urban sectors declined by a meager x percentage points

0

5

10

15

20

25

30

35

%

X%

20‐‐

x2

20‐‐

x1

0

20

40

60

80

100

%

Y%

20‐‐

y2

20‐‐

y1

20‐‐ 20‐‐

Rural Urban Variance x1 Y1


7

0

100

200

300

400

0

500

1,000

1,500

2,000

‘0000 KgINR mn X%

20‐‐

x4

y4

20‐‐

x3

y3

20‐‐

x2

y2

20‐‐

x1

y1

VolumeValue

India has been witnessing a trade deficit over the past two years, …

Exports • Indian sanitaryware export has declined by a CAGR of x% during 200‐‐ in value terms

•During 20‐‐‐, sanitaryware export and import has amounted to INR x mn and INR y mn, respectively, which is equivalent to x and y thousand Kgs in volume terms

• X is the largest export market for sanitaryware both in terms of value and volume for 20‐‐

Exports (Value and Volume)

Segmentation – Value (20‐‐) Segmentation – Volume (20‐‐)

x7

x6x5

x4x3

x2

x1

Others

Country 6

Country 5

Country 4

Country 3

Country 2

Country 1y7

y6

y5

y4 y3

y2

y1

Others

Country 6

Country 5

Country 4

Country 3

Country 2

Country 1


8

… as its sanitaryware imports surpasses the exported value by a huge margin

Imports • Imports in terms of value witnessed a steep rise in 20‐‐ ‐ ‐‐, growing at a CAGR of x% from INR z mn in 20‐‐ Imports have been considerably higher than the total exported amount both in value and volume terms during 20‐‐ as well as 20‐‐

• Country 1 is the largest exporter of sanitaryware to India both in terms of value and volume for the year 20‐‐‐

Imports (Value and Volume)

Segmentation – Value (20‐‐) Segmentation – Volume (20‐‐)

x7

x4x5x6

x3

x2

x1

Others

Country 6

Country 5

Country 4

Country 3

Country 2

Country 1 x7

x6x4x5

x3

x2

x1

Others

Country 6

Country 5

Country 4

Country 3

Country 2

Country 1

0

500

1,000

0

500

1,000

1,500

‘000 KgINR mnZ%

20‐‐

x4

y4

20‐‐

x3

y3

20‐‐

x2

y2

20‐‐

x1

y1

Value Volume


9

Drivers & Challenges – Summary

Drivers

High Income and Changing Lifestyle

Real Estate Boom

Replacement Demand

Untapped Market Potential

Increasing Awareness Among Consumers

Challenges

Rise in Power and Fuel Costs

Huge Unorganized Sector

Seasonality


10

Impact

Increasing demand from the replacement market provides growth opportunities for the players

Replacement Demand

• Finding 1

• Finding 2

• Finding 3

• Finding 4

Replacement Demand

Country Country

X%

Y%

BAX%

Y%


11

‐

Impact

Total Sanitation Campaign &X Five Year Plan (20‐‐)

Housing Policies (Urban)

Public Toilet Schemes

100% FDI in Real Estate

Government Initiatives


12

Trends – Summary

Green Initiatives Premium SanitarywareSegment

Emergence of Concept Washrooms

Increasing Foreign Presence

Key Trends


13

Market has witnessed a surge in demand for premium quality products primarily owing to their aesthetic appeal

Premium Sanitaryware Segment

Focus on premium

segments and high‐value items

• Finding 1

• Finding 2

• Finding 3

• Finding 4

Sanitaryware Product Categories

Category Price Range (INR) Brands

A ‐ Brand 1, Brand 2…………..

B ‐ Brand 1, Brand 2…………..

C ‐ Brand 1, Brand 2…………..

D ‐ Brand 1, Brand 2…………..

E ‐ Brand 1, Brand 2…………..


14

Key People

Company Information Offices and Centres – India

Corporate Address Adress, State, Country 1

Tel No. +‐‐‐‐‐

Fax No. +‐‐‐‐

Website website

Year of Incorporation 19‐‐

Ticker Symbol ‐‐‐‐

Stock Exchange ‐‐‐‐‐

Name Designation

Person 1 Designation 1




Head Office

Public: Domestic Company – Company A (1/3)

Products

Sanitaryware ProductsSegment 1Segment 2Segment 3Segment 4Segment 5Segment6Segment 7Segment 8


15

Key Ratios

Financial Summary

• The company earned a net profit of INR x bn in FY 20‐‐, as compared to net profit of INR y bn in FY 20‐‐

• The company reported total income of INR x bn in FY 20‐‐, registering an increase of y per cent over FY 20‐‐

• The company earned an operating margin of x per cent in FY 20‐‐, a decrease of y percentage points over FY 20‐‐

• The company reported debt to equity ratio of x in FY 20‐‐, an increase of y per cent over FY 20‐‐

Key Financial Performance Indicators

Total Income

Net Profit / Loss

x2

20‐‐

y1

x1

1.0

0.5

0.0

INR bn

15

10

5

0

INR bn

20‐‐

y4

x3

20‐‐20‐‐

x4

y3

y2

IndicatorsMarket Capitalization (INR) ‐

Total Enterprise Value (INR) ‐

EPS (INR) ‐

PE Ratio (Abs) ‐

Particulars y‐o‐y change

(20‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐

Profitability RatiosOperating 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 RatiosOperating costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Administration costs (% of Sales)

‐ ‐ ‐ ‐ ‐

Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Liquidity RatiosCurrent Ratio ‐ ‐ ‐ ‐ ‐

Cash Ratio ‐ ‐ ‐ ‐ ‐

Leverage RatiosDebt to Equity Ratio ‐ ‐ ‐ ‐‐ ‐

Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐

Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐

Efficiency RatiosFixed Asset Turnover ‐ ‐ ‐ ‐‐ ‐

Asset Turnover ‐ ‐ ‐ ‐ ‐

Current Asset Turnover ‐ ‐ ‐ ‐ ‐

Working Capital Turnover ‐ ‐ ‐ ‐ ‐

Capital Employed TurnoverImproved Decline

Financial Snapshot



16

Key Business Segments Key Geographic Segments

Business Highlights (1/2)

Description News

Overview

• It is a flagship Company of the X and is the Y Indian manufacturer of sanitarywareproducts with a dominant market share of x% of the organized sector

• Company has achieved x% level of capacity utilization in the sanitaryware segment• Company offers its range of sanitaryware products under the brand names: Brand 1, Brand 2, Brand ….

Network • Company has a wide spread network of more than x retailers and y dealers• There are x service centres across India and more than y shop‐in‐shops

Other Products • Product 1, Product 2, Product 3……………..

Realisations • Achieved x% higher average realisations per tonne in the sanitaryware segment

0%

20%

40%

60%

80%

100%

20‐‐

y4

x4

20‐‐

z4z3

y3

x3

20‐‐

z2

y2

x2

20‐‐

z1

y1

x1

CBA

0%

50%

100%

20‐‐

x

Country 1

Country 1 is the only geographic segment in which

the company has been operating for the last four

years



17

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