market research report : motors market in india 2014

Motors Market – India

June 2014

2

SAMPLE Executive Summary

Market

Drivers & Challenges

Trends

Competition

Robust growth of the end user industries is expected to accelerate the demand for motors in the Indian market

Indian AC Motors market was valued at INR xx bn in 20-- and is estimated to reach INR yy bn by 20--

Energy Efficient Motors

Customer Services

Drivers

Rise in Infrastructural Investments

Industrial Growth

Developments in the Power Sector

Growth in Consumer Durables

Agricultural Pumps Demand

Robust Automotive Market

Healthy Economic Outlook

Challenges

Volatile Raw Materials Prices

Lack of Capacity Utilization

Consumer Outlook

Major Players

Player 1 Player 2

Player 3 Player 4

Player 5 Player 6

MOTORS MARKET IN INDIA 2014.PPT

3

•Macro Economic Indicators

•Introduction

•Market Overview

•Motors Demand Scenario

•Motors Manufacturing Hub

•Supply Chain Analysis

•Export - Import

•Drivers and Challenges

•Government Initiatives & Regulations

•Trends

•Competitive Landscape

•Strategic Recommendations

•Appendix MOTORS MARKET IN INDIA 2014.PPT

4

SAMPLE Economic Indicators (1/3)

11

12

13

14

15

y3

z3

Q2

x2

y2

z2

a2

Q1

x1 y1

z1

a1

INR tn

Q4

x4

y4

z4

Q3

x3

20----- 20----- 20----- 20-----

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

%

Nov 20-- - Dec 20--

e

Oct 20-- - Nov--

d

Sep 20-- - Oct 20--

c

Aug 20-- - Sep 20--

b

Jul-- - Aug 20--

a


5

AC motors experience greater preference for a wide variety of applications in industrial to domestic sectors

AC Motors

• This segment comprises Low Tension (LT) motors and High Tension (HT) motors

• It offers advantages such as simple design, reliable operations and easily found replacements

• AC LT motors rank among the lowest priced motors for applications that need more than ½ HP of power owing to the

simple design of the motor

0

5,000

10,000

15,000

20,000

25,000

f1

20--e

E

e2

e1

20--e

D

d2

d1

20--e

C

c2

c1

20--e

B

b2

b1

20--

A

a2

a1

‘000 KW

20--e

F

f2

YY XX

Note: Motors industry is characterized by the presence of a diverse product range and is a highly fragmented market owing to which an exact estimate of the market segments in terms of value has not been covered


6

AC Motors – Segment Overview

AC Motors

XX


60

40

20

0

D

d2

d1

2015e

C

c2

c1

2014e

B

b2

b1

2013

A

a2

a1

bn

X

2018e

F

f2

f1

2017e

E

e2

e1

2016e

YY XX

YY

10

5

0

bn Y

2018e

a6

2017e

a5

2016e

a4

2015e

a3

2014e

a2

2013

a1

40

30

20

10

0

bn Z

2018e

b6

2017e

b5

2016e

b4

2015e

b3

2014e

b2

2013

b1

7

SAMPLE Motors Market – Segments (2/3)

d c

b

a

d c b a

Motors Market – Demand Share (2/3)

a3

a2

a1

a4

a3 a2 a1 a4

LT Squirrel Cage Motors (2013) LT Slip Ring Motors (2013)

• Total volume of LT Squirrel Cage Motors in the market was around aa units in 20--

• LT Squirrel cage motors of frame size xx accounted for the highest share of the market in 20--

• Total volume of LT Slip Ring Motors in the market was around bb units in 20--

• LT Slip Ring motors of frame size yy accounted for the highest share of the market in 20--


8

New demand dominates the overall procurement demand for motors across the domestic market

Motors Market – Demand Share (2013)

Regional Ranking - Demand Wise (2013)

b

a

b a

B%

a%

b

a

South & East

West

North


Demarcations on the map are indicative

9

Supply Chain Analysis (1/2)

• XXX • YYY • ZZZ

Purchase Decision Influencers

XX YY ZZ AA

b

a

b a

Motors Market – Share of Sub-Contracting (2013)


10

SAMPLE

`

AA

BB

Motors Industry Export-Import – Summary

Product Coverage

DD

EE

FF

GG


CC

11

SAMPLE Exports and Imports (Country-wise) (HS Code – 850151)

Exports (Value) Exports (Volume)

Imports (Value) Imports (Volume)

b

a

d e f

c

b

c

d

e

f

a

x4

x5

x6 x1

x3

x2

x2

x1

x3

x5

x6

x4

a4 a2

a1

a3

a6

a5

a5

a6

a1

a3

a2

a4

n

y

m o

z

x

n

z

y

o

x

m


12

SAMPLE

Rise in Infrastructural Investments

Growing investments for strengthening the infrastructure across India will enhance the demand for motors

• AA

• BB

• CC

• DD

Impact

Infrastructural Investments (12th Five Year Plan)

Development in infrastructure sectors will generate demand for a wide variety of products such as cranes, fans, cooling

equipment, appliances, pumps, conveyor equipment

etc. for their processes which, in turn, will drive demand for

motors 0

2,000

4,000

6,000

8,000

10,000

12,000X

20-----

x6

20-----

x5

20-----

x4

20-----

x3

20-----

x2

20-----

x1

In bn


13

Industrial Growth (4/5)

Demand for motors will expand with the growth of the machine tools sectors in India

Machine Tools Market Overview

• AA

• BB

• CC

• DD

• EE

-50

0

50

100

D

bn

x4 x1

B

x3

A C

x2

A

E

-50

0

50

100

m Z

m1 m3 m4

bn

Y

m2

X n

B 20-- 20--

XXXXXX Note: XXX


Impact

14

SAMPLE …order to promote the adoption of energy efficient motors and reduce energy related costs

Note: Years denote the average lifetime of a particular motor

Focus on Energy Efficiency (2/2)

Sector Conservation Potential

Energy Handled by Motors

Industrial Sector A X

Agriculture Sector

B Y

Domestic Sector C Z

Commercial Sector

D M

0

10

20

30

40

50

60

70

80

90

100

%

kW

z

z3

z1 z2

y

y3

y1 y2

x

x3

x1 x2

Energy Cost Installation and Service Cost Purchase Price

Motors - Life Cycle Costs

A Years B Years C Years

Energy Efficiency Motors - Energy Saving Potential

AAA


15

SAMPLE IS Standard AA – Comparative Analysis (2/3)

IS AA1 vs. AA2

CLAUSE/

DESCRIPTION IS AA1 IS AA2

XX xx1 xx2

YY yy1 yy2

ZZ zz1 zz2

AA aa1 aa2

BB bb1 bb2

CC cc1 cc2


16

SAMPLE Category

At the end of 10th Plan

At the end of 11th Plan

Expected addition during 12th Plan

Total by the end of 12th Plan (Expected)

Transmission Lines (AC & HVDC)

-- -- -- -- --

-- -- -- -- --

-- -- -- -- --

-- -- -- -- --

-- -- -- -- --

Figures in ckm

Sub Stations (AC & HVDC)

Total – HVDC terminal capacity in MW

-- -- -- --

Total – AC Substation capacity in MVA

-- -- -- --

Figures in MVA/MW

Power Transmission Network Expansion – 12th Five Year Plan

Required Fund for development of

transmission system during 12th Plan

Period

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

INR bn

20------ AAA x y z Central Sector

State Sector

Private Sector

Note: ckm refers to circuit kilometer MW refers to Mega Watt and MVA refers to Mega Volt Ampere


17

SAMPLE Energy Efficient Motors Penetration

Energy Efficient Motors Demand Share

Energy Efficient Motors (3/3)

YY

XX

YY2

XX1

Others

Energy Efficient Motors

2013 2018e

Adoption of energy efficient motors can be accelerated by imposition of government regulations and rise in consumer

awareness


18

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • xxx

Bargaining Power of Buyers • xxx

Threat of New Entrants • xxx

Impact Medium

Impact High

Impact Medium

Bargaining Power of Suppliers • xxx

Impact Medium to High

Threat of Substitutes • xxx

Impact Low to Medium


19

SAMPLE Competitive Benchmarking (1/5)

Public Trading Comparables (FY 2012)

Player 1 Player 2 Player 3

Market Capitalization (INR mn) XX YY ZZ

Share Price (INR) XX1 YY1 ZZ1

EV/EBITDA (x) XX2 YY2 ZZ2

EV/Revenue (x) XX3 YY3 ZZ3

PE Ratio XX4 YY4 ZZ4

Note: Top 4 Public companies based on the Market Capitalization; Market Capitalization is as on --/-/2014, Share Price is as on --/-/2014 and PE ratio is as on --/-/2014


20

SAMPLE Key Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)

Competitive Benchmarking (x/x)

-10

0

10

20

30

40

%

xxx

F E

xxx

D

C

xxx

B

A

Net Margin Operating Margin

• xxx


21



-50

0

50

100

%

xxx

F E

xxx

D

C

xxx

B

A

Return on Capital Employed Return on Equity

0.0

0.5

1.0

1.5

2.0

xxx

Y

xxx

H

xxx

G

Current Ratio

• xxx


22



0.0

0.5

1.0

1.5

xxx

A3

xxx

A2

xxx

A1

Asset Turnover Ratio

• xxx


23

SAMPLE

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

Name Designation

Pune Head Office

Public: Domestic Company – Player 1 (x/x)


24

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR 1417.8 mn in FY 2012, as compared to net profit of INR 1397.4 mn in FY 2011

• The company reported total income of INR 10,252.73 mn in FY 2012, registering an increase of 26.8% over FY 2011

• The company earned an operating margin of 17.0% in FY 2012, an increase of 2.44 percentage points over FY 2011

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn) 42,886.0

Total Enterprise Value (INR mn) 38,015.3

EPS (INR)* 58.49

PE Ratio (Absolute)* 17.78

Particulars y-o-y change

(2012-11) 2012 2011 2010 2009

Profitability Ratios Operating Margin 2.44 17.00% 14.56% 19.39% 25.14%

Net Margin -3.46 13.83% 17.28% 19.03% 11.02%

Profit Before Tax Margin 0.60 19.20% 18.60% 20.52% 11.43%

Return on Equity -1.84 16.87% 18.70% 18.00% 16.74%

Return on Capital Employed 5.09 20.54% 15.45% 18.26% 38.19%

Return on Working Capital 13.52 39.79% 26.28% 28.62% 86.59%

Return on Assets 4.25 17.18% 12.93% 14.24% 31.01%

Return on Fixed Assets 5.17 58.36% 53.19% 54.69% 70.72%

Cost Ratios Operating costs (% of Sales) -2.25 82.58% 84.83% 80.50% 74.61%

Administration costs (% of Sales)

-1.42 6.67% 8.09% 7.31% 8.48%

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity Ratios Current Ratio -9.39% 3.64 4.01 3.26 2.91

Cash Ratio -12.89% 2.06 2.37 1.92 1.14

Leverage Ratios Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.

Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency Ratios Fixed Asset Turnover -4.45% 3.35 3.51 2.81 2.79

Asset Turnover 15.72% 0.99 0.85 0.73 1.22

Current Asset Turnover 27.36% 1.66 1.30 1.02 2.24

Working Capital Turnover 31.90% 2.28 1.73 1.47 3.41

Capital Employed Turnover 14.52% 1.19 1.04 0.94 1.50

Improved Decline

Net Profit/Loss Total Income

10252.78084.96045.35997.9

1,417.81,397.4

1,150.2

660.9

0

5000

10000

15000

0

500

1,000

1,500

INR mn INR mn

2012 2011 2010 2009



25

SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

11%

0%

50%

100%

2012

67%

11% 21%

2011

69%

21%

2010

66%

11% 23%

2009

67%

12% 21%

xxx xxx xxx

7%0%

50%

100%

2012

10%

83%

2011

8% 6%

86%

2010

7% 8%

85%

2009

4% 9%

87%

xxx xxx xxx



26

SAMPLE

• xxx • xxx

• xxx • xxx

T O

W S



27

SAMPLE Private: Domestic Company – Player 2 (x/x)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Name Designation

Bangalore

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Head Office


28

SAMPLE Private: Domestic Company – Player 2 (x/x)

Shareholders of the Company Ownership Structure

Name No. of Shares held

XXX

XXX

XXX

xxx xxx xxx


29

SAMPLE Financial Snapshot Key Ratios

Particulars y-o-y change

(2012-11) 2012 2011 2010 2009

Profitability Ratios Operating Margin -0.66 2.49% 3.15% 7.82% 7.17%

Net Margin -0.15 1.78% 1.93% 5.11% 6.50%

Profit Before Tax Margin -0.66 2.49% 3.15% 7.82% 7.17%

Return on Equity 0.00001 0.0001% 0.0001% 0.0002% 0.0003%

Return on Capital Employed -0.00002 0.0001% 0.0001% 0.0003% 0.0003%

Return on Working Capital 0.000001 0.000209% 0.000211% 0.0004% 0.0003%

Return on Assets -0.00001 0.0001% 0.0001% 0.0002% 0.0003%

Return on Fixed Assets -0.00003 0.0003% 0.0003% 0.0014% 0.0083%

Cost Ratios Operating costs (% of Sales) 0.66 97.51% 96.85% 92.18% 92.83%

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity Ratios Current Ratio -9.75% 1.58 1.75 1.96 2.52

Cash Ratio -33.53% 0.17 0.26 0.33 1.01

Leverage Ratios Debt to Equity Ratio 151.97% 0.25 0.10 0.00 0.07

Debt to Capital Ratio 121.87% 0.20 0.09 0.00 0.06

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency Ratios Fixed Asset Turnover 13.44% 0.00012 0.00011 0.00018 0.00115

Asset Turnover 8.16% 0.00002 0.00002 0.00002 0.00004

Current Asset Turnover 7.77% 0.00003 0.00003 0.00003 0.00003

Working Capital Turnover 25.98% 0.00008 0.00007 0.00005 0.00004

Capital Employed Turnover 19.72% 0.00004 0.00004 0.00004 0.00004

Private: Domestic Company – Player 2 (x/x)

Improved Decline

Financial Summary

• The company earned a net profit of INR 624 in FY 2012, as

compared to net profit of INR 583 in FY 2011

• The company reported total income of INR 35,128 in FY 2012,

as compared to INR 30,200 in FY 2011

• The company earned an operating margin of 2.49% in FY 2012,

a decrease of 0.66 percentage points over FY 2011

• The company reported debt to equity ratio of 0.001 in FY 2011,

a decrease of 98.87% over FY 2010

Net Profit/Loss Total Income

35,128.030,200.0

35,029.0

29,919.0

624.0

1791.01945.0

0

10,000

20,000

30,000

40,000

0

500

1000

1500

2000

INR INR

2012 2011

583.0

2010 2009


30

SAMPLE Business Highlights


Description News


31

SAMPLE

• xxx • xxx

• xxx • xxx

T O

W S



32

Thank you for the attention

About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

Motors Market – India report is part of Netscribes' ‘Energy' Industry Series. For more detailed information or customized research requirements please contact:

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

Phone: +91 22 4098 7600 E-Mail: [email protected]


http://www.netscribes.com/

mailto:[email protected]