Market Research Report : Electric wire and cable market in india 2014 - Sample

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Electric Wire and Cable Market – India October 2014


Executive Summary Market Overview

Drivers & Challenges

Trends

EXIM

 The Indian wire and cable industry is predominantly volume-driven  It accounts for ~ ’x’% of the total transmission and distribution segment  In 20--, the market stood at INR ‘a’ bn and is expected to reach INR ‘b’ bn by FY 2018, growing at CAGR of about ‘y’% Drivers  Focus on Power Sector  Large Investments in Telecom Sector  Robust Industrialization  Growing Urbanization

Challenges  Increase in Price of Raw Materials  Increase in Competition  Safety Hazards

 Technological Innovations  Preference for Aluminum Export  India majorly exports to UK, USA, Nepal, UAE and Sri Lanka

Import  India mainly imports from Russia, UAE, Turkey and China Major Players

Competitive Landscape

Company A

Company B

Company C

Company D

Company E

Company F

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•Macroeconomic Indicators •Introduction

•Market Overview •Export-Import •Drivers & Challenges

•Government Initiatives •Trends •Competitive Landscape

•Opportunities •Strategic Recommendations •Appendix ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

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Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15

13

d1 c1 b1

12

a1

14

c4 b4 a4

c3 b3 a3

d2 c2 b2 a2

11

Q1

Q2 2010-11

2011-12

2012-13

Q3 2013-14

Q4

Inflation Rate: Monthly % 2 1

p

r

s

q

0 -1

t

-2

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013 4


Backed by growth in end-user industries, wire and cable demand is expected to increase rapidly in the coming years Market Segmentation-Sector-wise

Wire and Cable-Market Overview (1/2) • Indian wires and cable market is primarily dependent on sales volume and involves huge quality and technical specifications

Unorganised Organized p2%

 End-use industries like telecom, energy generation, automotive, construction determines the market prospects for wire and cable industry p1%

• Rise in investment in infrastructure in developing countries like India, China, Brazil , Russia are stimulating the market growth of wire and cable industry

FY2013

 International players are considering India as a potential market for HV and EHV cables

Indian Wire and Cable Market – Size and Growth INR bn f

x6

Y%

x5

d

x4 x3

e

a

b

c

x2 x1 0 FY 20--

FY 20--

FY 20--

FY 20--

FY 20--

ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

FY 20-5


Drivers & Challenges – Summary

Challenges Drivers

Increase in Price of Raw Materials

Focus on Power Sector

Increase in Competition

Large Investments in Telecom Sector

Safety Hazards

Robust Industrialization Growing Urbanization

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Emphasis on transmission lines addition in the 12th FYP will boost the domestic demand for cables Focus on Power Sector (1/4)

Impact

• Indian government has placed utmost importance to the power sector and also to the development of infrastructure  Growth of the infrastructure and power sector is directly related to the GDP of the country

• H1 FY 20-- saw an inflow of INR ‘xx’ bn in the power sector through the FDI route • FDI up to ‘yy’% is permitted under the automatic route for projects involved in electricity generation (except atomic energy), transmission, distribution and power trading • Since the power sector is developing and expanding, so the need for electric cables and wires is on the rise and likely to increase even further

Planned T&D Investments

Transmission Lines Additions

Transmission

‘000 Ckt

Distribution INR bn

z6 z5

b5 b4 b3 b2 b1

p3

a2% a1%

a4%

z4

z3 a3%

0

p2 p1

z2 z1 0

11th FYP

12th FYP

10th FYP

11th FYP

12th FYP

H1 refers to the first six month of the financial year

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Trends

Technological Innovations

Preference for Aluminum

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Porter’s Five Forces Analysis

Threat of New Entrants

Impact X

Bargaining Power of Suppliers

Impact X

Impact X

Competitive Rivalry

Impact X

Bargaining Power of Buyers

Impact X Threat of Substitutes

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Competitive Benchmarking (1/5) Public Trading Comparables Company A

Company B

Company C

Company D

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

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Competitive Benchmarking (2/5) Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3) Gross Margin

Operating Margin

Net Margin

% b1

x5

x4

a1

c1

x3 x2

a2

a3

b2

b3

d1

c2

x1 Company A

Company B

Company C

d2

c3

d3

Company D

• Company B recorded gross margin of b1%, higher than that of Company A, Company C and Company D which recorded gross margin of a1%, c1%, d1% respectively

• Company A recorded highest operating margin of a2%, followed by Company B, Company D and Company C which recorded operating margin of b2%, d2%, and c2% respectively • Company A recorded a net margin of a3%, higher than that of Company D and Company C but lower than Company B which recorded net margin of b3%

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Public: Domestic Company – Company A Ltd. (1/4) Company Information

Offices and Centres – India

Corporate Address Tel No. Noida

Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange

Headquarters

Products and Services Category Lighting Products

Products/Services

Key People Name

Wires and cables Energy Meters Modular Wiring accessories

Designation

Person 1

Chairman and Managing Director

Person 2

Director

Person 3

Director( Finance)

Person 4

Executive Director

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Public: Domestic Company – Company A Ltd. (2/4) Financial Snapshot

Key Ratios

Total Income

INR mn

Net Profit/Loss

INR mn

b2

x4

y4 y3

x3

a2 b1

x2

a1 20--

d2 d1

c1

x1

Financial Summary

c2

20--

20--

20--

• The company reported total income of INR ‘d1’ mn in FY 20--, registering an increase of ‘p’% over FY 20-• The company earned an operating margin of ‘x.x’% in FY 20--, an increase of ‘y.y’ % points over FY 20-• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase of ‘z.z’% over FY 20--

Key Financial Performance Indicators Indicators Total Enterprise Value (INR) EPS (INR) PE Ratio (Absolute)

y1 y0

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

• The company incurred a net loss of INR ‘d2’ mn in FY 20-- as against INR ‘c2’ mn in FY 20--

Market Capitalization (INR)

y2

Particulars

Value (dd/mm/yyyy)

Cost Ratios 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 Improved

ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

Decline

13


Public: Domestic Company – Company A Ltd. (3/4) Key Business Segments

Key Geographic Segments

Cables&Wires

Others

Lighting

M&PG

Switchgear

x4

India

European Union

Other Countries

y3

x3

b1 a1 c1

x2 x1

a2

a3

d1 e1 b2

c3 b3

a4 c4 b4

y2 y1

x0 20--

20--

20--

20--

p1

s1

p2

p3

p4

20--

20--

20--

r1

20--

Business Highlights Description

News • Company A Ltd. was formerly known as Company E Ltd. and changed its name to Company A Ltd. in July 20--

Overview

• Manufactures and markets a wide range of electrical products like wires and cables, fans, switches, geysers and mobile accessories • Demerged its metering and power generation business in 20-- and diversified the business of LED lighting products and energy efficient water heaters and fans

Expansion Plans

• In FY 20--, acquired two factories at SIDCUL Haridwar and is looking to diversify into home appliances

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

S

W

O

T

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Private: Domestic Company – Company B (1/5) Company Information

Offices and Centres – India

Corporate Address

Tel No.

Fax No. Website Year of Incorporation Mumbai Headquarters

Products and Services Category Cables

Products/Services

Key People Name

Wires

Designation

Person 1

CEO

Person 2

Director

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Private: Domestic Company – Company B (2/5) Shareholders of the Company as on dd/mm/yyyy Name

No. of Shares held

Shareholder 1

a

Shareholder 1

b

Total

Ownership Structure Directors or relatives of directors

x

48.6%

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Private: Domestic Company – Company B (3/5) Financial Snapshot

Key Ratios

Total Income INR mn

INR mn

x3 x2

Particulars

Net Profit/Loss

b2 b1 a2

b3 a3

b4

a4

y3 y2

a1 x1

y1 2010

2011

2012

2013

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 Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Financial Summary • Company earned a net profit of INR ‘b4’ mn in FY 20--, as compared to net profit of INR ‘b3’ mn in FY 20-• It reported total income of INR ‘a4’ mn in FY 20--, registering a decrease of ‘p’% over FY 20-• Earned an operating margin of ‘x.x’ % in FY 20-- a decrease of ‘y.y’ percentage points over FY 20-• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase of ‘z.z’% over FY 20--

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 Improved

ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

Decline

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Private: Domestic Company – Company B (4/5) Business Highlights Description

News • Company B manufactures, supplies and exports electrical wires and cables in India

Overview

• Manufacturing facility is in ‘Z’ • ISO 9001-2008 and ISO 14001 : 2004 certified and follows BIS and CSA standards

• The products are approved by Technical Advisory Committee, Mumbai port trust, HPCL and Public Works Certifications and approvals

Department (PWD)

• Obtained certificate of performance from companies like Reliance Petroleum Ltd. and Abby Lighting Clients

• Domestic clients include A, B, C., D • It also exports its products in countries like UK, North Ireland and Middle East

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Private: Domestic Company – Company B (5/5)

S

W

O

T

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Growing prominence of renewable energy in India to provide huge opportunity to wire and cable industry Shift Towards Renewable Energy • Principal sources of renewable energy are    

Wind Energy Small Hydro up to 25 MW Biofuel Solar Energy

• Renewable energy capacity presently accounts for x% of the total installed power capacity and y% of the electricity produced in India • The installed capacity is estimated to increase to z% by 20-• India plans to more than double its renewable energy capacity by 20-• The Government of India plans to generate an additional xx GW of renewable energy in the 12th Plan Period, more than double the yy GW added during the 11th Five Year Plan

Forecasted Generation Mix by 20-Resources

Estimated Installed Capacity (GW)

Coal

xx

Gas

xx

Hydro

xx

Renewable

xx

Nuclear

xx

Renewable Energy Market Segmentation Wind

b%

Biofuel

c%

Solar d%

Small Hydro Power a%

Jan, 2014

ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

Total installed capacity of renewable energy is x GW

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Thank you for the attention Electric Wire and Cable Market – India report is part of Netscribes’ Manufacturing Industry Series. For any queries or customized research requirements, contact us at: Phone: E-Mail:

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