Elevator and Escalator Market – India February 2015
Executive Summary Market Overview
Drivers & Challenges
Global elevator and escalator market is expected to grow at a CAGR of x% through 20-- to 20-- to reach INR yy bn in 20- Indian elevator market is expected to grow at a CAGR of z% through FY 20-- to FY 20-- to reach p units in FY 20-Drivers:
Challenges:
Real Estate Development Increased Migration to Urban Areas
Safety Issues due to Ill-Maintained Equipment
Growth in Disposable Income as well as Aged Population
Lack of Trained Manpower and NonMandatory Regulations
Continuous FDI Inflow Growth in Infrastructure Investment Introduction of Green Elevators
Key Trends
Emergence of Smarter and Faster Elevators Increasing Role of Elevator Consultants Key Players
Competitive Landscape
Company A Ltd.
Company B Pvt. Ltd.
Company C Pvt. Ltd.
Company D Pvt. Ltd.
Company E Pvt. Ltd.
Company F Pvt. Ltd.
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•Macroeconomic Indicators
•Introduction •Market Overview •Export-Import
•Drivers & Challenges •Government Initiatives •Trends
•Competitive Landscape •Market Opportunities •Strategic Recommendations
•Appendix ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT
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Rising real estate demand from emerging countries to boost global elevator and escalator market
SAMPLE
Market Overview – Global (1/2) • Global elevator and escalator market is expected to grow at a CAGR of P% through 20-- to 20-- to reach INR x6 bn in 20• Elevator and escalator market is primarily composed of two segments – new equipment installations and maintenance and modernization segments of already installed equipment • Emerging markets such as China, India and Brazil are driving the new equipment installation market while the maintenance and modernization segment is recording stable growth in Europe and the Americas • OTIS, Schindler, ThyssenKrupp and KONE dominates the global elevator and escalator market with a market share of around z%
Global Elevator and Escalator Market – Size and Growth (Value-wise) INR bn P%
y4 y3
x1
x2
x3
x4
20--e
20--e
20--e
x5
x6
20--e
20--e
y2 y1 0 20--
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Second largest elevator market in the world, Indian elevator market holds huge growth potential
SAMPLE
Market Overview – India (1/2)
Market Segmentation – Product-wise
• Indian elevator market is expected to grow at a CAGR of p% through FY 20-- to FY 20-- to reach x6 units in FY 20-• Indian elevator market is expected to be driven by the residential real estate sector with the market opting for safer and energy efficient auto-door elevators • The average cost of buying and installing an elevator varies from INR z1 to few millions depending upon the technology, brand, number of stops and complexity faced during installation
Residential Others q1%
q2%
Indian Elevator Market – Size and Growth (Volume-wise) Unit y5 y4 y3 y2
P% x1
x2
FY 20--
FY 20--e
x3
x4
x5
x6
y1 0 FY 20--e
FY 20--e
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FY 20--e
FY 20--e 5
SAMPLE
HS Code: 84282020 (1/4)
Export of Elevators (Value-Wise) INR mn
Z% b2
b1
a3
b4
a2
b3
a1 0 FY 20--
FY 20--
Exports Based on Value – Country-Wise FY2013
FY 20--
FY 20--
Exports Based on Value – Country-Wise FY2014
p1
x1
p2 x2
x7 x3 x4 x6
x5
p3
q1
y2
q2
y1
q3
p4
y3
p5 p6 p7
q4 q5
q6
y7
y4
y6
ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT
q7
y5
6
Drivers & Challenges – Summary
Drivers Real Estate Development
Challenges
Increased Migration to Urban Areas
Safety Issues Due to Ill-Maintained Equipment
Growth in Disposable Income as well as Aged Population
Lack of Trained Manpower and NonMandatory Regulations
Continuous FDI Inflow Growth in Infrastructure Investment
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Booming real estate sector is expected to generate huge demand for elevators
SAMPLE
Real Estate Development
Impact
• Real estate sector comprises residential housing, commercial offices, trading spaces and industrial parks • Government initiatives such as the implementation of the Special Economic Zone Act, liberalization of FDI investments and PE investments in real estate has led to the development of the sector and has indirectly contributed to an increase in application of elevators and escalators • Use of elevators and escalators has also increased owing to rise in residential and non-residential projects in tier II and tier III cities • Development of the real estate sector will translate into a growth in demand for elevators in India
Real Estate Market – Size and Growth
Real Estate Market Segmentation 20--
INR tn
Residential
y3 y2
x1
x2
x3
x4
x6 x5
Commercial
p1
y1 p2 0 2013
2014e
2015e
2016e
2017e
2018e
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Trends – Summary
Introduction of Green Elevators
Key Trends Increasing Role of Elevator Consultants
Emergence of Smarter and Faster Elevators
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Porter’s Five Forces Analysis
SAMPLE Impact
Threat of New Entrants
Impact
Impact
Bargaining Power of Suppliers
Impact
Competitive Rivalry
Bargaining Power of Buyers
Impact
Threat of Substitutes
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Competitive Benchmarking (1/3)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/4) Operating Margin
%
Net Margin
x2
a4
y2
y1
a3
x3 y3
a2 a1
x1
0 Company A
Company B
Company C
• Company B recorded highest operating margin of x2%, followed by Company C and Company A which recorded operating margin of x3% and x1% respectively • Company B recorded a net margin of y2%, higher than that of Company A and Company C which recorded net margin of y1% and y3%
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SAMPLE
Private: Domestic Company – Company A Ltd. (1/5) Company Information
Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation
Mumbai
Products and Services Category
Head Office
Products/Services
V
Key People
X
Name
Designation
Person 1 Y
Person 2
Z
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SAMPLE
Private: Domestic Company – Company A Ltd. (2/5) Shareholders of the Company Name
Ownership Structure
No. of Shares held
P
X1
Q
X2
R
X3
S
X4
X
X5
Y
X6
Z
X7 Total
Foreign Holdings
Bodies Corporate
Nationalized or Other Banks
Other Top Fifty Shareholders
Others
x1 x2 x3 x4
x5
X8
Note: AGM as of 22nd Sep 2014 ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT
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SAMPLE
Private: Domestic Company – Company A Ltd. (3/5) Financial Snapshot
Key Ratios
Total Income
INR mn
INR mn
a3 a2
Particulars
Net Profit/Loss y4
y3
y1
b4
y2 b3 x2
x1
x3
x4
a1
b2 b1
20--
20--
20--
20--
Financial Summary • The company earned a net profit of INR y4 mn in FY 20--, as compared to net profit of INR y3 mn in FY 20-• The company reported total income of INR x4 mn in FY 20--, registering an increase of p% over FY 20-• The company earned an operating margin of z1% in FY 20--, an increase of z2 percentage points over FY 20--
y-o-y change (2014-13)
2014
2013
2012
2011
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)
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
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Decline
14
SAMPLE
Private: Domestic Company – Company A Ltd. (4/5) Business Highlights Description
News
Overview
• Company A Ltd. manufactures, installs, maintains and modernizes escalators, elevators and moving walkways • Installed base of more than zz escalators and elevators throughout India
Manufacturing Facility
• Manufacturing unit in Bangalore which was expanded in 20-- to thrice its initial size • Bagged a contract to supply xx escalators to Delhi Metro Rail Corporation for phase III of Delhi Metro project in 20-
Major Projects
• Entered into an agreement to supply yy elevators and pp escalators to Hyderabad Metro Rail project in 20--
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SAMPLE
Private: Domestic Company – Company A Ltd. (5/5)
S
W
O
T
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Strategic Recommendations
SAMPLE
X
Y
Y
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