Computer Numerically Controlled Machine Tools Market – India February 2013
Executive Summary Market
Computer Numerical Control machine tools is expected to witness significant growth in application owing to extensive usage in manufacturing and strategic sectors Market is characterized by a high dependency on imports for critical CNC machine tool components
Drivers
Challenges
• Healthy Economic Outlook
Drivers & Challenges
• Import Dependency for Critical CNC Components
• Growing Demand for Automobiles and Auto Components
• High Cost of CNC Machines
• Well Established Foundry Industry
• Depreciation of Currency
• Growing Capital Goods Industry
• Lack of Skilled Labour
• Robust Medical Equipment Market
Required Initiatives
Technology Denial and Counter Measures Fiscal Measures Major Players
Competition
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
CNC MACHINE TOOLS MARKET IN INDIA 2013.PPT
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•Introduction •Market Overview •CNC Technology and Applications •CNC Machine Tool Hubs •Export ‐ Import •Drivers and Challenges •Required Initiatives •Competition •Strategic Initiatives •Appendix CNC MACHINE TOOLS MARKET IN INDIA 2013.PPT
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India is set to emerge as one of the major players in the global market with… Machine Tool Market India – Overview (1/2)
Machine Tool Market – Turnover Share
• Machine tools sector serves as the mother industry for the Indian manufacturing sector
A
B
• India ranks X in terms of production and Y in terms of consumption for machine tools in the world
X%
• Following a stagnation and decline in the growth rate of the machine tools industry in developed nations, focus is being shifted to low cost and high skill developing nations
Y%
Market Size & Growth INR bn x10
250
Y%
200 150 100
X% x4
x1
x2
x3
20‐‐
20‐‐
20‐‐
x5
x6
x7
x9 x8
50 0
20‐‐
20‐‐
20‐‐e
20‐‐e
CNC MACHINE TOOLS MARKET IN INDIA 2013.PPT
20‐‐e
20‐‐e
20‐‐e 4
Growing adoption of CNC machine tools in different manufacturing segments will drive market growth CNC Machine Tools – Demand Growth INR bn x7
80
x6
+16.5% x5
60 40
x2
x3
x4
x1
20 0
20‐‐
20‐‐
20‐‐e
20‐‐e
20‐‐e
20‐‐e
20‐‐e
• Point 1 • Point 2
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Despite growth in exports, Imports have substantially outweighed exports in X CNC machines X CNC Machines Exports
Imports
1,500 1,000
A
INR mn
INR mn Z%
x2
x1
X%
50,000 40,000
B
z1
z2
y1
y2
x1
x2
20‐‐
20‐‐
30,000 20,000
500
10,000 0
20‐‐
20‐‐
0
• Export share of X CNC machines in total machine tools export increased from x% in 20‐‐ to Y% in 20‐‐‐ • Import share of X CNC machines registered a marginal decline from X% in 20‐‐ to Y% in 20‐‐‐ Note: CNC Old refers to the import of used metal cutting CNC machines CNC MACHINE TOOLS MARKET IN INDIA 2013.PPT
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Drivers & Challenges – Summary
Challenges Import Dependency for Critical CNC Components
Drivers Healthy Economic Outlook
High Cost of CNC Machines
Growing Demand for Automobiles and Auto Components
Depreciation of Currency
Well Established Foundry Industry
Lack of Skilled Labour
Growing Capital Goods Industry Robust Medical Equipment Market
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India’s growing economy will support the sustainable development of CNC machines market Healthy Economic Outlook
Impact
• Finding 1 • Finding 2 • Finding 3 • Finding 4
GDP Growth Trend* % 10 8
x1
x2
x3 x4
x5
6 4 2 0
20‐‐
20‐‐
20‐‐
20‐‐
CNC MACHINE TOOLS MARKET IN INDIA 2013.PPT
20‐‐e
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Public: Domestic Company – Company 1 (1/3) 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 y3
y1
400
y2
5,000
x1
x2
2009
2010
600
x3
x4
2011
2012
0
200 0
Financial Summary
Particulars
y‐o‐y change (20‐‐‐‐)
20‐‐
20‐‐
20‐‐
20‐‐
‐
‐
‐
‐
‐‐
‐ ‐ ‐ ‐ ‐ ‐ ‐
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‐ ‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐ ‐ ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐ ‐
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‐ ‐
‐ ‐
‐ ‐ ‐
‐ ‐ ‐
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‐ ‐ ‐
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‐ ‐ ‐ ‐ ‐
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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 283.3 mn in FY 2012, as compared to net profit of INR 411.3 mn in FY 2011 • The company reported total Income of INR 8,618.3 mn in FY 2012 registering an increase of 15.28% over FY 2011 • The company earned an operating margin of 6.09% in FY 2012, a decrease of 0.73 percentage points over FY 2011 • The company reported debt to equity ratio of 0.92 in FY 2012, an increase of 1.30% over FY 2011
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 (3/3) Key Business Segments A
B
Key Geographic Segments C
A
D
100%
B
100%
x1
x3
x2
x1
x4
50%
x2
x3
x4
y2
y3
y4
20‐‐
20‐‐
20‐‐
50%
y1 z1
0%
w1
20‐‐
y2 z2 20‐‐
w2
y3 z3 20‐‐
w3
y4 z4 20‐‐
y1 w4
0%
20‐‐
Business Highlights Description
News
Overview
• Company 1 is a leading manufacturer of machine tools and it has operations in X1, X2, X3, X4 and X5 segments • Machine tools Group of the company has Y divisions, Y1, Y2, Y3 and an Y4
Company Network
• Plants of the company are located in City X and State Y • Company operates through various business groups and provides comprehensive pre‐ sales and post‐sales service through a network of X offices nationwide
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