Market Research Report : Bearings Market in India 2013

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Bearings Market – India February 2013


Executive Summary Market

 Bearings market in India is expected to witness robust growth owing to huge investments in infrastructure by the government

Challenges

Drivers

Drivers & Challenges

Trends

• Growing demand for automobiles and auto components • Increased investment in wind turbines • Robust construction & mining equipment market • Expanding railway sector • Well established foundry industry • Healthy economic outlook

• Counterfeit products • Stiff competition in the market • Rise in steel price

 Global collaboration  Changing customer preferences  Focus on technology development Major Players

Competitive Landscape

Company 1

Company 2

Company 3

Company 4

Company 5

Company 6

BEARINGS MARKET IN INDIA 2013.PPT

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•Macro Economic Indicators •Introduction •Market Overview •Bearings Manufacturing Process •Bearing Hubs •Export ‐ Import •Drivers and Challenges •Trends •Competitive Landscape •Strategic Initiatives •Appendix BEARINGS MARKET IN INDIA 2013.PPT

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Macro Economic Indicators (1/3) GDP at Factor Cost: X INR tn 14

x1 y1

12

z1

x2 y2 z2

11

k1

k2

13

y4 z4

y3 z3

k4

k3

10 Q ‐

Q‐ 20‐‐

Q‐ 20‐‐

20‐‐

Q‐

20‐‐

Inflation Rate: Y % 1.0

x1

x3

0.8 0.6

x2

x4

x5

20‐‐

20‐‐

0.4 0.2 0.0

20‐‐

20‐‐

20‐‐

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Focus on infrastructure development presents a huge growth opportunity to the Indian bearings market Bearings Market India – Overview

Bearing Market Structure (20‐‐)

• Bearings market in India is characterized by the presence of a large number of established domestic and foreign players leading to high competitive rivalry

A

B x1

• Unorganized sector of the Indian bearings industry primarily caters to the requirement of the replacement market • Growing demand from diverse sectors is expected to ensure a robust market growth

x2

Market Size & Growth INR bn 150

x6

Z%

100

x1

x2

20‐‐

20‐‐

x3

x5 x4

50 0

20‐‐e

20‐‐e

BEARINGS MARKET IN INDIA 2013.PPT

20‐‐e

20‐‐e

5


Despite steady growth in exports, India continues to remain import… Exports – X Bearings Country wise Exports (20‐‐)

Total Exports

INR bn 20

x7

x4

Z%

x1

Country 2

x3

15

Country 3

x1

10

x6 x5

x2

5

Country 4 Country 5 Country 6

x4

0

20‐‐

20‐‐

20‐‐

Country 1

20‐‐

x2

Others

x3

• Point 1 • Point 2

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Drivers & Challenges – Summary

Drivers Growing Demand for Automobiles and Auto Components

Challenges

Increased Investment in Wind Turbines

Counterfeit Products

Robust Construction & Mining Equipment Market

Stiff Competition in the Market

Expanding Railway Sector

Rise in Steel Price

Well Established Foundry Industry Healthy Economic Outlook

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Automotive sector in India accounts for the largest share in demand of bearings in the Indian market Growing Demand for Automobiles and Auto Components

Impact

• Finding 1 • Finding 2

Point 1

Growing Demand for Automobiles

Automotive – Share of Bearings Demand

000’ units

A

50,000

x5 Z%

40,000

x4

30,000 20,000

B

x1

x2

y1

x3

10,000

y2

0

20‐‐

20‐‐

20‐‐

20‐‐e

20‐‐e

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Trends – Summary

Global Collaboration

Key Trends Focus on Technology Development

Changing Customer Preferences

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Players operating in the market are focusing on alliances with global majors to strengthen their market presence Global Collaboration • Point 1 • Point 2 • Point 3

Collaboration with global players to drive market growth

Company

Collaboration

Company 1

Company 1

Company 2

Company 2

Company 3

Company 3

Company 4

Company 4

Company 5

Company 5

Company 6

Company 6

Company 7

Company 7

Company 8

Company 8 BEARINGS MARKET IN INDIA 2013.PPT

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Competitive Benchmarking (1/5) Public Trading Comparables (FY 20‐‐) Company 1

Company 2

Company 3

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

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Public: Domestic Company – Company 1 (1/4) Company Information Corporate Address

Offices and Centres – India

Address

Tel No.

91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Fax No.

91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Website

website

Year of Incorporation

19‐‐

Ticker Symbol

‐‐‐‐‐‐

Stock Exchange

‐‐‐

Products and Services Category

Head Office Products/Services

Key People Segment

Others

Product 1, product 2, product 3,………………….

Product 1, product 2, product 3………

Name

Designation

Person 1

Designation

Person 2

Designation

Person 3

Designation

Person 4

Designation

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Public: Domestic Company – Company 1 (2/3) Financial Snapshot Total Income INR mn

Key Ratios Profit INR mn

Total Income Profit / Loss

10,000

y4

600

y3

y1

400

y2

5,000

x1

x2

20‐‐

20‐‐

x3

x4

20‐‐

20‐‐

200

0

0

Financial Summary

Particulars

y‐o‐y change (20‐‐‐‐)

20‐‐

20‐‐

20‐‐

20‐‐

‐‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐

‐ ‐ ‐

‐ ‐ ‐

‐ ‐ ‐

‐ ‐ ‐

‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

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

• 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 x mn in FY 20‐‐ registering an increase of x% over FY 20‐‐ • The company earned an operating margin of x% 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% over FY 20‐‐

Financial Summary Indicators

Value

Market Capitalization (INR)

Total Enterprise Value (INR)

EPS (INR) PE Ratio (Absolute)

‐ ‐

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

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Public: Domestic Company – Company 1 (3/4) Key Business Segments

Key Geographic Segments

A

X

100%

100%

x1

50%

Company operates under a single large segment in India

80% 60% 40%

y1

Country 1 is the only geographic segment in which the company operates

20%

0%

0%

20‐‐

20‐‐

Business Highlights Description

News

Overview

• A leading manufacturer of bearings conforming to stringent global standards and is a leading supplier to the automotive industry in both the domestic and the foreign market

Company Network

• Company has a vast distributor and dealer network spanning across x states and y districts • Distributor network of the company is also present in Country 1, Country 2and Country 3 to service after market

Alliance

• In 19‐‐, company entered into a X alliance with Company 2 and obtained Y from Company 3

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Public: Domestic Company – Company 1 (4/4)

• XX

• XX

• XX

• XX

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Thank you for the attention The Bearings Market – India 2013 report is a part of Netscribes’ Manufacturing Industry Series. For any queries or customized market research requirements, contact us at: Phone: E‐Mail:

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About Netscribes, Inc. Netscribes, Inc. 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 Inc. is a one‐stop shop designed to fulfil clients’ profitability and growth objectives. 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. BEARINGS MARKET IN INDIA 2013.PPT

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