Construction Chemicals Market India Construction Chemicals Market – India Jun 2013
Executive Summary Market
Construction chemicals is one of the niche segments of the specialty chemicals industry in India Growing focus on construction activities in India has led to significant rise in demand for construction chemicals in the Indian market
Challenges
Drivers
Drivers & Challenges
Trends
Growth in Infrastructure Construction
Low Consumer Awareness
Real Estate Development
Lack of Standards
Rise in Disposable Income bl
Price Sensitivity Price Sensitivity
Healthy Economic Outlook
Unskilled Labor
Focus on Tier 2 and Tier 3 Cities F Ti 2 d Ti 3 Citi Use of Silicone‐based Chemicals Eco‐Friendly Construction Chemicals
Major Players
Competition
Company A
Company B
Company C
Company D
Company E
Company F
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
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•Macro Economic Indicators •Introduction •Market Overview •Market Overview •Construction Chemicals ‐ Classification •Major Application Areas j pp •Penetration Rate ‐ Key Segments •Supply Chain Analysis •Major Manufacturing Hubs •Drivers and Challenges •Trends •Competitive Landscape Strategic Initiatives Initiatives •Strategic •Appendix CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
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SAMPLE
Economic Indicators (1/3) Gross Fiscal Deficit: Monthly INR bn 600 500 400 300 200 100 0
x6
x5 x3 x4
x2 x1 Month ‐‐
Month ‐‐
Month ‐‐
Month ‐‐
Month ‐‐
Month ‐‐
Exchange Rate: Monthly g y USD/INR 55.0
x1
x2
54.5 54.0 53.5 Month 20‐‐
x5
x3
x6
x4
Month 20‐‐
Month 20‐‐
Month 20‐‐
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
Month 20‐‐
Month 20‐‐ 4
Robust specialty chemicals industry has the potential to attract significant additional investment over the Zth FYP Specialty Chemicals – Share of Construction Chemicals
Specialty Chemicals Industry INR bn
X%
a x2 b
Z%
20‐‐
c d
x1
e
Y%
0
A 20‐‐
B
20‐‐e X%
• Specialty chemicals segment has witnessed a growth of x% over the zth Five Year Plan (FYP) period from FY 20‐‐ ‐‐ ‐‐ • Share of construction chemicals segment in the overall specialty chemicals market is expected to remain stagnant at the end of the zth FYP
20‐‐e
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
Y%
5
Wide range of chemicals find extensive application in different construction materials
SAMPLE
A • Product 1 • Product 2 • Product 3 • Product 4 • Product 5 • Product 6 Product 6 • Product 7 • Product 8 • Product 9
B
• Product 1 • Product 2 • Product 3 • Product 4 • Product 5 Product 5 • Product 6 • Product 7
C
• Product 1 • Product 2 • Product 3 • Product 4 Product 4 • Product 5
D
• Product 1 • Product 2 • Product 3 • Product 4
E
Major Applications
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
• Product 1 • Product 2 • Product 3 • Product 4 • Product 5 • Product 6 Product 6 • Product 7 6
Product A Overview
Benefits
A
B
C
D
Penetration Rate Comparison Penetration Rate – Comparison % a
x1 Point 1
b
x2
c x3 d
x4
0 Country 1
Country 2
Country 3
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
Country 4 7
Drivers & Challenges – Summary
Challenges Low Consumer Awareness
Drivers Growth in Infrastructure Construction R lE Real Estate Development D l
Lack of Standards Price Sensitivity Unskilled Labor
Rise in Disposable Income Healthy Economic Outlook
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
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Focus on infrastructure construction will boost the demand for construction chemicals in the Indian market Growth in Infrastructure Construction
Impact
• Finding 1 • Finding 2 • Finding 3 • Finding 4 • Finding 5
Investment in Infrastructure – As % of GDP %
A
INR bn
B
a
a Z4 Z2
b Z1 x1
e y1
Z5
Z3
x2
x5
x3
x2 Z%
b c
x4
c d
Planned Investment in Infrastructure
d
x1
e y2
y3
y4
y5
0
f 0
20‐‐ ‐‐‐
20‐‐‐
20‐‐‐
20‐‐‐
20‐‐‐
Y Plan
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
Z Plan 9
Trends – Summary
Focus on Tier 2 and Tier 3 Cities
Key Trends d Eco‐Friendly C Construction Chemicals i Ch i l
Use of Silicone‐Based Ch i l Chemicals
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
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Owing to multiple benefits the industry is witnessing a growing demand for silicone‐based chemicals Use of Silicone‐Based Chemicals • Point 1 • Point 2 i • Point 3
Use of A ‐ Advantages
Silicone based chemicals chemicals gaining popularity
• Point 1 • Point 2 • Point 3
Major Application Areas of A B
C
D
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
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Competitive Benchmarking (1/5) Public Trading Comparables (FY 20‐‐) Company 1
Company 2
Company 3
Company 4
Market Capitalization (INR mn)
‐
‐
‐
‐
Share Price (INR)
‐
‐
‐
‐
EV/EBITDA (x)
‐
‐
‐
‐
EV/Revenue (x) /
‐
‐
‐
‐
PE Ratio
‐
‐
‐
‐
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Public: Domestic Company – Company A (1/4) Company Information Corporate Address
Offices and Centres – India
Address
Tel No. Tel No.
91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 91
Fax No.
91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website
website
Year of Incorporation
19‐‐
Ticker Symbol
‐‐‐‐‐‐
Stock Exchange
‐‐‐
Products and Services Products and Services Category
Head Office Products/Services
Key People Segment
Others
Product 1, product 2, product 3,………………….
,p ,p Product 1, product 2, product 3………
N Name
D i ti Designation
Person 1
Designation
Person 2
Designation
Person 3
Designation
Person 4
Designation
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Public: Domestic Company – Company A (2/4) Financial Snapshot i i lS h Total Income
INR mn 40000 30000
K Key Ratios i
x2
INR mn x4
x3
x1 y4
y3 y1
1,500 1,000
20000 10000
Net Profit/Loss
y2
0
500 0
20‐‐
20‐‐
20‐‐
20‐‐
Financial Summary
Particulars
y‐o‐y change (20‐‐‐‐)
20‐‐
20‐‐
20‐‐
20‐‐
‐0.08
5.26%
5.34%
9.10%
6.86%
‐0.95 ‐0.38 ‐2.56 0.77 7.01 ‐0.76 ‐4.71
2.86% 4.25% 9.62% 16.26% 34.36% 8.44% 39.29%
3.81% 4.63% 12.17% 15.49% 27.35% 9.20% 43.99%
5.89% 9.16% 11.40% 17.62% 26.05% 11.36% 56.23%
3.68% 6.76% 13.39% 24.96% 44.47% 13.45% 56.98%
0.12
94.74%
94.62% 90.87% 93.11%
1.30
16.92%
15.62% 16.75% 16.99%
‐0.03
0.27%
0.30%
0.10%
0.50%
‐17.36% 26.93%
1.51 0.03
1.83 0.03
2.23 0.37
1.66 0.10
29.39% 25.19% 10.05%
0.17 0.14 19.42
0.13 0.11 17.65
0.00 0.00 88.95
0.06 0.06 13.78
‐8.70% ‐6.20% ‐4.16% 28 42% 28.42% 2.41%
7.47 1.60 2.21 6 53 6.53 2.88
8.18 1.71 2.30 5 09 5.09 2.81
6.16 1.24 1.57 2 85 2.85 1.93
8.27 1.95 2.56 6 46 6.46 3.42
Profitability Ratios Operating Margin Net Margin i 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 y% over FY 20 registering an increase of y% over FY 20‐‐ • The company earned an operating margin o fx% 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‐‐
Key Financial Performance Indicators Indicators
Value (dd/mm/yy)
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (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 Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover W ki C it l T Working Capital Turnover Capital Employed Turnover
Improved
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT
Decline
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Public: Domestic Company – Company A (3/4) Key Business Segments
a b 0%
A
B
C
D
E
F
a1
a2
b1
b2
c1 e1 d1 20‐‐
Key Geographic Segments
d2
c2 e2
20‐‐
A
a3
a4
b3
b4
c3 d3 17% e3
c4 d4 18% e4
20‐‐
20‐‐
B
a b
x1
x2
x3
x4
0%
yy1
yy2
yy3
yy4
20‐‐
20‐‐
20‐‐
20‐‐
Business Highlights D Description i ti
N News
Overview
• Company A is one of the leading chemical companies operating in the global market with around x manufacturing units around the world • Company A , a division of Company B, engages in the production of construction chemicals
Brand/Product Launch
• In Mar 20– Company A launched a new brand X for the construction industry • Solutions provided under the new brand name include chemical solutions used for new construction, maintenance, repair and renovation of buildings and infrastructure • Environment friendly and innovative coating and paints solutions were launched in Y 20 Environment friendly and innovative coating and paints solutions were launched in Y 20‐‐ held in City A
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