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
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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‐‐
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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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