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Glass Market – India August 2014
Executive Summary Market
EXIM
Drivers & Challenges
Technology Trends
• The Indian glass market is currently valued at INR x1 bn and is expected to reach INR x2 bn in 2018 • The Indian container glass market is valued at INR y1 bn and is expected to reach INR y2 bn in 2018 • The Indian flat glass market is expected to reach a1 lakh tonne by 2014 growing at a rate of b1% • India exhibits a low glass consumption in comparison to other countries • India has a strong position in container glass market wherein export exceeds import • In container glass articles for conveyance and packaging registers the highest export as well as import Drivers – Growing use in packaging industry – Qualitative aspect – Growth in real estate sector – Growth in automobile sector – Growing preference for value added glass – Glass widely used in solar products – Glass used for energy conservation – Cost advantage
Challenges – Rise in price of soda ash – Growing alternatives of glass – Reusable nature of glass – Competition from Chinese products
• Blow and Blow • Press and Blow
Major Players
Competition
Public Companies
Company A
Company B
Company C
Private Companies
Company D
Company E
Company F
GLASS MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview Container Glass
-Green Potential Flat Glass
-Emerging Types of Flat Glass •Export Import •Distribution Channel •Drivers & Challenges • Trends Technology Trends Key Trends
•Competitive Landscape •Strategic Recommendation •Appendix GLASS MARKET IN INDIA 2014.PPT
3
Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn c4
15 14
d1 c1
d2
13
b1
b2
12
a1
a2
c2
c3
b4
b3
a4
a3
11 Q1
Q2 2010-11
Q3 2011-12
2012-13
Q4
2013-14
Inflation Rate: Monthly %
2 1
r p
s q
0 -1 t
-2 Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
GLASS MARKET IN INDIA 2014.PPT
Oct 2013 - Nov 2013
Nov 2013 - Dec 2013
4
Glass as a product has several uses but it is used the most in the construction and packaging industry Container glass forms the largest segment in the glass industry due to a strong demand from the end user segment followed by flat glass and other glass segments Float Glass
SAMPLE
• Float glass was the biggest innovation that revolutionized the glass industry • With the invention of float glass process, glass application expanded and currently dominates the construction, automotive and mirror industries • Further processing of float glass leads to various other types of glass such as Sheet Patterned Wired
GLASS
Container Glass
• Packaging industry is highly influenced by the container glass • Even though there are several other packaging alternatives, container glass is preferred as it is healthy, hygienic and eco-friendly • Sectors demanding container glass include beer and spirits segment, food and beverages industry, pharma industry as well as cosmetics and perfumery
Other Glass • It includes the optical glass and fibre glass • Optical glass have wide application in lens used in eyeglasses, microscopes, telescopes, camera and many instruments for factories and laboratories • Fibre glass is used in making glass yarn, tape, cloth and mats along with electrical insulation, chemical filtration, cutlery and firefighters' suits GLASS MARKET IN INDIA 2014.PPT
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The Indian glass market is progressing at a steady rate due to its wide applications across sectors Market Overview: India
Market Size and Growth (Value wise)
• Glass market in India will show a healthy growth rate amidst a strong GDP performance • The growth rate of Indian markets is more than global growth rate as the associated glass using sectors is witnessing a robust growth • However, per capita consumption of glass is much less than other developed countries which outlines the growth potential of glass sector in India • Flat glass is exhibiting tremendous growth potential in India which is attracting existing container glass manufacturers as well as new players
Per Capita Consumption – Comparison (2013)
INR bn t X% s r
a1
a3
a2
a4
q p 2013
2014e
2015e
2016e
2017e
2018e
Market- Segmentation (2013)
kg
Segment 1
t
a6
a5
a2
Segment 2
Segment 3
b2
s r q
a3
b1
a1
b3
p India
USA
Other Developed Countries GLASS MARKET IN INDIA 2014.PPT
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Stupendous growth of the container glass market is primarily driving the glass market in India Market Overview: Container Glass
Market Size and Growth (value wise) INR bn
• Container glass forms the largest market segment in the overall glass market • Indian packaging industry has been growing, aided by a number of factors
t X% s
Increasing urbanization and rise in the middle class population is increasing the demand for packaged products
r
a2
a4
a6
q
• Container glass market is capital intensive which is an entry barrier for new players to enter the market • Container glass packaging solutions can undergo multiple cycles of reuse
p 2013
Growth in Production
2014e
2015e
2016e
2017e
2018e
Per Capita Consumption
TPD
kg
t s r
a1
a3
a5
a1
a2
a3
a4
a5
a6
t s r
q
q
p
p 20--
20--
20--
20--
20--
20--
a1
20--
GLASS MARKET IN INDIA 2014.PPT
a2
20--
a3
20--
a4
20--
a5
20--
a6
20-7
The growth in glass market is being fostered by the growth of the flat glass market Market Overview: Flat Glass
Market Size and Growth (Value wise)
• Flat glass is produced by float process and is processed further to add certain qualities and specifications • Flat glass helps in reducing greenhouse gas emissions as well as helps in energy conservation via its architectural glass products • This market has benefited from the booming automotive industry • Rise in demand for architectural glass in the following years is expected to boost the market
INR bn t
X% s r
a1
a2
a3
a4
p 2013
2014e
2015e
2016e
Float Glass : Domestic Sales
TPD
TPD
s r
a1
a2
a3
a4
a5
a6
s r q
p
p 20--
20--
20--
20--
20--
2017e
t
q
20--
a6
q
Growth in Production t
a5
a1
20--
GLASS MARKET IN INDIA 2014.PPT
a2
20--
a3
20--
a4
20--
a5
20--
2018e
a6
20-8
•Macroeconomic Indicators •Introduction •Market Overview Container Glass
-Green Potential Flat Glass
-Emerging Types of Flat Glass •Export Import •Distribution Channel •Drivers & Challenges • Trends Technology Trends Key Trends
•Competitive Landscape •Strategic Recommendation •Appendix GLASS MARKET IN INDIA 2014.PPT
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Container glass makes a valuable contribution to export earnings with maximum contribution by packaging articles Export Import: Container Glass
EXIM Snapshot
• India has an impressive performance in export of container glass products • It has persistently enjoyed a positive net trade value of an average of INR 4.7 bn over the past four years • Glass articles used for conveyance and packaging comprise the highest valued segment in import as well as export
Export
INR bn v u
Net Trade
INR bn
n4
n3
n2
n1
f e
t s r q p
d e1 m1
e4
e3
e2
20--
Container Glass Export Components- 2014
Import
m3
m2
c m4
b a
20--
20-2013
20-2014
Container Glass Import Components- 2014
x4 x3 x5 x2
x4 x3 x5 x2
x1
x1
Note: Following HS Codes were used: 70101000; 70109000; 70179020; 70179030; 70179090 GLASS MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview Container Glass
-Green Potential Flat Glass
-Emerging Types of Flat Glass •Export Import •Distribution Channel •Drivers & Challenges • Trends Technology Trends Key Trends
•Competitive Landscape •Strategic Recommendation •Appendix GLASS MARKET IN INDIA 2014.PPT
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Drivers & Challenges- Summary Drivers Growing use in packaging industry Growth in real estate sector
Challenges
Better packaging quality
Rise in price of soda ash
Growth in automobile sector
Growing alternatives of glass
Growing preference for value added glass
Competition from Chinese products
Glass is widely used in solar products
Reusable nature of glass
Glass used for energy conservation Cost advantage
GLASS MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview Container Glass
-Green Potential Flat Glass
-Emerging Types of Flat Glass •Export Import •Distribution Channel •Drivers & Challenges • Trends Technology Trends Key Trends
•Competitive Landscape •Strategic Recommendation •Appendix GLASS MARKET IN INDIA 2014.PPT
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Technology Trends – Summary
Blow and Blow
Press and Blow
GLASS MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview Container Glass
-Green Potential Flat Glass
-Emerging Types of Flat Glass •Export Import •Distribution Channel •Drivers & Challenges • Trends Technology Trends Key Trends
•Competitive Landscape •Strategic Recommendation •Appendix GLASS MARKET IN INDIA 2014.PPT
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Trends – Summary Demand for value-added products is growing for basic glass
Key Trends Investment and capacity expansion
Decorative glasses with digital print technology
GLASS MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview Container Glass
-Green Potential Flat Glass
-Emerging Types of Flat Glass •Export Import •Distribution Channel •Drivers & Challenges • Trends Technology Trends Key Trends
•Competitive Landscape •Strategic Recommendation •Appendix GLASS MARKET IN INDIA 2014.PPT
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SAMPLE
Porter’s Five Forces Analysis
Impact x Threat of New Entrants
Impact x
Bargaining Power of Suppliers
Impact x
Competitive Rivalry
Impact x
Bargaining Power of Buyers
Impact x
Threat of Substitutes
*Note: BEP (Break-even point) GLASS MARKET IN INDIA 2014.PPT
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SAMPLE
Competitive Benchmarking (2/5)
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
%
Net Margin
40 30
a1 b1
20 10
a2
b2
a3
b3
0 Company A
Company B
Company C
• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3% • Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies
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Public: Domestic Company – Company 1 (1/5)
SAMPLE
Company Information
Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Mumbai
Head Office
Products and Services Category
Products/Services
Key People Name
Designation
Person 1
MD and Executive Director
Person 2
VC and VC of Share Transfer Committee
Person 3
Director
Person 4
Director
GLASS MARKET IN INDIA 2014.PPT
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Public: Domestic Company – Company 1 (2/5)
SAMPLE Key Ratios
Financial Snapshot Total Income
d
z1
s
a3
a1
r
c b
a4
a2
e
Particulars
Net Profit/Loss
z2
z3
z4
q
a
p 2010
2011
2012
2013
Financial Summary • The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012 • The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012 • The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012 • The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012
2013
2012
2011
2010
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
Key Financial Performance Indicators Indicators
y-o-y change (2013-12)
Value (20/03/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
GLASS MARKET IN INDIA 2014.PPT
Decline
21
Public: Domestic Company – Company 1 (3/5)
SAMPLE
Key Business Segments Segment 1
C%
a1%
B%
b1%
Key Geographic Segments
Segment 2
b2%
Region 1
b3%
b4%
A%
Region 2
C%
x1%
B%
y1%
x2%
x3%
x4%
2010
2011
2012
2013
A% 2010
2011
2012
2013
Business Highlights Description
News
Overview
• The company has operations in Country A, Country B and Country C that offers treatment for acute and chronic diseases in primary, secondary and tertiary care sectors
• Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging, Services
gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries and transplantation
• Operates retail pharmacy outlets all across the country
GLASS MARKET IN INDIA 2014.PPT
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Public: Domestic Company – Company 1 – SWOT Analysis (5/5)
SAMPLE S
W
O
T
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Private: Domestic Company – Company 2 (1/5)
SAMPLE
Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation
Mumbai
Head Office
Products and Services Category
Products/Services
Key People Ready Meals
Name
Designation
Person 1
Director
Person 2
Director
Person 3
Director
Person 4
Director
Instant Mixes
Others
GLASS MARKET IN INDIA 2014.PPT
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Private: Domestic Company – Company 2 (2/5)
SAMPLE
Shareholders of the Company
Name
Ownership Structure
No. of Shares held
Segment Segment
Segment
19.0%
23.6%
GLASS MARKET IN INDIA 2014.PPT
57.4%
25
Private: Domestic Company – Company 2 (3/5)
SAMPLE
Financial Snapshot Total Income
Key Ratios
a3
t
Particulars
Net Profit/Loss
f e
s a1
d
r q
b1
b2
b3
b4
c b
p
a 2008
2009
2010
2013
2012
2011
2010
Profitability Ratios
a4
a2
y-o-y change (2013-12)
2011
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 • The company earned a net profit of INR x1 mn in FY 2011, as compared to net profit of INR x2 mn in FY 2010
Liquidity Ratios
• The company reported total income of INR x3 mn in FY 2011, registering an increase of x4% over FY 2010
Leverage Ratios
• The company earned an operating margin of x5% in FY 2011, an increase of x6 percentage points over FY 2010 • The company reported debt to equity ratio of x7 in FY 2011, a decrease of x8% over FY 2010
Current Ratio Cash Ratio 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
GLASS MARKET IN INDIA 2014.PPT
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26
Private: Domestic Company – Company 2 (3/5) Business Highlights Description
SAMPLE News
• Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in Overview
Country D • Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3
Facilities
• Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery • Provides advanced medical diagnostics and treatment with personal care
Recognitions
• Obtained NABH accreditation within one and a half years of beginning operation in India • Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited
GLASS MARKET IN INDIA 2014.PPT
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Private: Domestic Company – Company 2– SWOT Analysis (5/5)
SAMPLE S
W
O
T
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