Market Research Report : Microwave Ovens Market in India 2013 by Netscribes, Inc.

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Microwave Ovens Market India Microwave Ovens Market – April 2013

Executive Summary  Microwave ovens market in India is valued at around INR xx bn in 20‐‐ and is estimated to grow at a CAGR of over xx% between 20‐‐ to 20‐‐

Market

 Within consumer durables sector, Microwave Oven is one of the fastest growing segments  Market leaders xx and xx occupies the lion's share in the overall market pie

Drivers

Drivers & Drivers & Challenges

Challenges

– Rise in Disposable Income

– Rise in Dollar Value

– Favorable Demographics

– Lack of Awareness in Microwave Usage

– Changing Lifestyle Ch i Lif l

– Delay in Timely Delivery D l i Ti l D li

– Rise in Double Income Couples – Increase in Organized Retail

Trends

 Product Innovation & Introduction of New Models  Below‐The‐Line (BTL) Activities

Major Players

Competition

Company A

Company B

Company C

Company D

Company E

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

•Macroeconomic Indicators •Introduction •Market Overview Export – Import •Export •Drivers & Challenges •Trends •Competitive Landscape •Consumer Insights Survey •Strategic Recommendations •Appendix MICROWAVE OVENS MARKET IN INDIA 2013.PPT

SAMPLE

Macro Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 14

a1 b1

a2 b2 c2

b4 c4

b3 c3

10 Q1

Q2 2009‐10

2010‐11

2011‐12

Q3 2012‐13

Inflation Rate: Monthlyy % 1.0

08 0.8 0.6

Oct 2012 ‐ Nov 2012

Nov 2012 ‐ Dec 2012

0.4 0.2 0.0

Jul 2012‐ Aug 2012

Aug 2012 ‐ Sep 2012

Sep 2012 ‐ Oct 2012

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Consumer Durable Sector ‐ Segmentation Consumer Durables

White Goods

Brown Goods (Kitchen Appliances )

Consumer Electronics

Refrigerators

Mixers

Mobile Phones

Washing Machines

Grinders

Televisions

Air‐conditioners

Microwave Ovens

MP3 Players

Speakers and Audio Equipments

Iron

DVD Players

Electric Fans

VCD Players

Cooking Range Chimneys

Focus of the report MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Young population coupled with rising disposable income are driving consumer durables demand Consumer Durables Market ‐ Overview • Indian consumer durable market is currently valued at INR xx bn and is expected to reach INR xx bn by 20‐ ‐at a CAGR of around xx% • Indian consumer durable segment currently has a penetration level of xx%, with demand coming from both urban & rural areas both urban & rural areas  As of now, the urban consumer durable market is growing at xx% annually, wherein the demand is primarily pushed by the replacement category rather than first time buyers - A Appliances such as microwave ovens, flat panel TV mainly drive li h i fl l TV i l d i the market which are preferred as replacement product

Market Size & Growth (Value‐wise) INR bn x%

600 500 400

2011

2012

300 200 100 0

2013e

2014e

2015e

C Consumer Durables ‐ D bl S Segmentation (20‐‐) t ti (20 )

 On the other hand, rural consumer durable market is expanding rapidly at xx% annually - Televisions Televisions, refrigerators are some of the products which has refrigerators are some of the products which has observed good traction from the rural sector

b3% Segment A

b2% b4%

Segment B Segment C

b5%

Segment D Segment E

b1%

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Microwave ovens market in India is expected to see rapid growth owing to rising demand in the country Microwave Ovens Market ‐ Overview • Microwave ovens has emerged as one of the fastest growing categories in India’ss consumer durables growing categories in India consumer durables market, especially in the urban segment  Latest, easy to use technology and smart functioning features help microwaves fulfill demand of consumers

• The market is estimated to register a CAGR of xx% and witness unit sales crossing xx mn mark by 20‐‐  In terms of unit sales, solo ovens have seen the highest sale whereas convection ovens have been able to drive the value proposition in the market

• Indian market is inundated with premium microwave ovens from domestic and global players  Global companies such as Company A, Company B and Company C are leading ahead of domestic companies such Company D and Company E in terms of popularity and service

Market Size & Growth (Volume‐Wise) mn units 5

a6 +24.7%

4 3

20‐‐

1 0

20‐‐

M k t Si & G Market Size & Growth (Value‐Wise) th (V l Wi ) INR bn 50

b6 +30 6% +30.6%

40 30 20

b4 b1

10 0

20‐‐ MICROWAVE OVENS MARKET IN INDIA 2013.PPT

20‐‐

20‐‐ 7

SAMPLE

Market Share by Types of Microwave Ovens Share in Sales Units

20‐‐

20‐‐e

Solo

Grill

Convection

Share in Value

z1 x1

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Zone Wise Demand for Microwave Ovens – India Demand

Demand

Demand Mumbai

Demand

CERAMIC TILES MARKET IN INDIA 2013.PPT

Microwave ovens import market is witnessing a steady rise in revenue Import of Microwave Ovens

Imports (Value‐Wise)

• xx

INR mn

+29%

3,000

a2 a1

2,000 1,000 0

20‐‐

Imports (Country‐Wise: 20‐‐) 7.4% 3.1% 1.2% 0.7% 20.3%

20‐‐

Imports (Country‐Wise: 20‐‐) Country A Country B Country C Country D

67.3%

20‐‐

Country E

2.8% 8.3% 1.4% 6.9% 23.6%

Others

Country F Country G Country H 57.1%

Country I Country J Others

Note: All figures are for the respective financial years MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Drivers & Challenges – Summary

Drivers

Challenges

Rise in Disposable Income

Rise in Dollar Value

Favorable Demographics

Lack of Awareness in Microwave Usage

Changing Lifestyle

Delay in Timely Delivery

Increasing Double Income Couples Increase in Organized Retail

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Increase in disposable incomes drives sales of microwave ovens in India Rise in Disposable Income

Impact

• xx

Aggregate Consumption (INR tn) 100% 80% 60% 40% 20%

a a1% a3%

a2%

b b1% b3%

c b2%

Household Income Brackets (INR ‘000)

c1% c2%

a4% b4% a5% 5%

0% 20‐‐

b5% 20‐‐e

c3% c4% 4%

c5%

Gl b l >1000 Globals 1000 Strivers 500‐1000 Seekers 200‐500 Aspirers 90‐200 Deprived <90

Aggregate Disposable Income (INR tn) 100%

x x1%

80%

x3%

60% 40% 20% 0%

z1% z2%

x4% y4% x5% 20‐‐

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

z y2%

y3%

20‐‐e

x2%

y y y1%

y5% 20‐‐e

z3% z4%

z5%

20‐‐e 12

Favorable demographics provide a conducive environment for the growth of microwave ovens market Favourable Demographics

Impact

• xx

Core Target Groups 60

Demographic Distribution of India

% a

Below xx years

xx years

Target population

Above xx years

xx% xx% xx

of the population fall under the working age category MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Increasingly dependent on the availability of efficient the availability of efficient electronic home appliances including microwave ovens 13

SAMPLE

Competitive Benchmarking (1/5) Public Trading Comparables (FY 2012)

Company A

Company B

Company C

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization and Share Price are as of 7/1/2013 and PE ratio is as of 9/1/2013 Videocon Industries Ltd. is not considered due to unavailability of its 2012 financials MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Competitive Benchmarking (2/5) Key Ratios of Top 4 Companies – Operational Basis (FY 2012) (1/3) Operating Margin

% 6

Net Margin

4.08

1.85

2 0

‐0.03

‐2 2

‐0.04

‐0.02 1 48 ‐1.48

‐4

‐3.44

Company A

Company B

Company C

Company D

• xx

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

SAMPLE

Major Vendors in Microwave Ovens Market in India

Market Share of Major Vendors (20‐‐) 4.9%

3.3% 5.7%

29.0% 8.7%

8.7%

10.7%

18.1%

10.9%

Company A

Company C

Company E

Company G

Company B

Company D

Company F

Company H

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Company I

Major Players (1/3) Major Players

Capacity

SAMPLE Unique Features

Sales Service Strategy

• xx

Samsung

• xx

Onida

• xx

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Major Public Companies – Summary Net Profit

Size of the Bubble represents Market Capitalization in INR mn

6,000 4,000 2,000 0

m2 m4

‐2,000

m1 m3

4 000 ‐4,000 ‐6,000 ‐8,000 ‐10 10,000 000 ‐12,000

‐14,000 ‐16,000

Total Income

‐18,000 0

20,000

Player A

40,000

60,000

Player B

Player C

80,000

Player D

100,000

120,000

Player E

140,000

160,000

180,000

Player F

Note: All figures are in INR mn and correspond to the latest financials available MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Public: Domestic Company – Player A (1/4) Company Information Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ti k S b l Ticker Symbol

Stock Exchange

Offices and Centres – India

Mumbai

Products and Services Category

Head Office

Products/Services

Key People Domestic Appliances

Name Lighting Products

Designation

Note: Product list is not exhaustive MICROWAVE OVENS MARKET IN INDIA 2013.PPT

SAMPLE

Public: Domestic Company – Player A (2/4) Financial Snapshot i i lS h Total Income INR mn 40,000

17,755.6

K Key Ratios i

Total Income Net Profit / Loss 27,565.7 22,379.4

Net Profit INR mn 31,123.3

1,500 1,000

20,000

500

20‐‐

Financial Summary

Particulars

y‐o‐y change 2012 (2012‐11)

2011

2010

2009

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

‐1.37

7.36%

8.73%

10.20%

10.15%

‐1.43

3.79%

5.22%

5.23%

5.02%

‐2.28

5.65%

7.93%

8.94%

7.87%

‐6.69

16.84%

23.53%

23.69%

36.38%

‐5.65

30.15%

35.80%

41.23%

55.25%

‐6.19

99.01%

105.20% 56.56%

95.34%

‐1.89

11.74%

13.63%

17.31%

‐35.06

122.51%

157.57% 226.85% 185.65%

1.39

92.61%

91.22%

89.76%

89.81%

1.22

13.04%

11.82%

12.36%

12.06%

0.61

1.92%

1.32%

1.66%

2.33%

‐1.25%

1.19

1.21

1.51

1.26

5.17%

0.08

0.12

36.04%

0.30

0.22

0.31

0.88

27.74%

0.23

0.18

0.23

0.47

‐42.39%

3.84

6.67

6.16

4.37

‐7.66%

16.57

17.95

22.15

18.22

2.28%

1.59

1.55

1.65

1.70 1.96

16.90%

Cost Ratios

• The company earned a net profit of INR 1,178.8 mn in FY 2012, as compared to net profit of INR 1,437.9 mn in FY 2011 • The company reported total income of INR 31,123.3 mn in FY 2012 registering an increase of 12 9 per cent over FY 2011 2012, registering an increase of 12.9 per cent over FY 2011 • The company earned an operating margin of 7.36 per cent in FY 2012 a decrease of 1.37 percentage points over FY 2011 • The company reported debt to equity ratio of 0.30 in FY 2012, an increase of 36.04 per cent over FY 2011

Key Financial Performance Indicators Indicators

Value (21/01/2013)

Market Capitalization (INR) Total Enterprise Value (INR) EPS (INR) EPS (INR) PE Ratio (Absolute)‐09/01/2013

xx xx xx xx

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

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio D b Debt to Capital Ratio C i lR i Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

Note: Financials for 2008 and 2009 are for year ended on 30th Sep. Financials for 2010and 2011 are for year ended on 31st Dec MICROWAVE OVENS MARKET IN INDIA 2013.PPT

5.04%

2.18

2.07

1.86

11.77%

13.39

11.98

5.52

9.36

‐7.31%

3.41

3.68

3.45

3.84

Improved

Decline

SAMPLE

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

Key Geographic Segments

Consumer Durables

Lighting

Engineering & Projects

Others

India

100%

50%

42.7%

42.8%

46.6%

48.4%

29.6%

33.1%

30.3%

26.8%

23.0%

24.7%

20‐‐

0% 20‐‐

20‐‐

50%

100%

India has been the only India has been the only revenue generating segment for ‐‐ during 20‐‐

0% 20‐‐

Key Recent Developments Description

News

Overview

• xx

Microwave Ovens Range

• xx

Note: Business segments and Geographic segments are based on revenues MICROWAVE OVENS MARKET IN INDIA 2013.PPT

SAMPLE

Public: Domestic Company – Player A – SWOT Analysis (4/4) • xx

• xx

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

• xx

SAMPLE

Microwave Ovens Usage in India ‐ Consumer Insights Survey Survey on Microwave Ovens Usage – Introduction and Methodology • The survey on Microwave Ovens usage was conducted on social media sites and via emails The survey on Microwave Ovens usage was conducted on social media sites and via emails • The survey has been kept partially close‐ended along with open‐ends in order to capture and analyze specific information according to requirements • The survey has been conducted amongst a group of general consumers heading from major Indian cities including New The survey has been conducted amongst a group of general consumers heading from major Indian cities including New Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, amongst others

Sample Size Sample Size

61 Social Media Websites and E‐mail Communications

Sample Sources

Survey Duration & Period Quantitative Representation Used

2 Weeks – Jan 2013

Percentage Respondents Percentage Respondents

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Grilled microwave ovens are most popular among Indian consumers

SAMPLE

Most Used Microwave Ovens Type Q: Which type of microwave oven are you currently using or looking to purchase in near future? us g o oo g o pu c ase ea u u e

Most Used Microwave Ovens Type (% Respondents) x2%

x1%

Major Responses:

Solo (basic microwave)

1) Solo (basic microwave)

Microwave + Grill

2) Microwave + Grill

Convection

3) Convection

x3%

Preferred Prices for Each Type Preferred Prices for Each Type Q: What prices do you feel is fair / attractive for each type of microwave oven? Major Responses: 1) Solo (basic microwave)___________________

Solo

INR xx –

Microwave + Grill

INR xx –

Convection

INR xx –

2) Microwave + Grill_______________________ 3) Convection_____________________________

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

SAMPLE

Strategic Recommendations (3/3) Price

• xx

Product

• xx

Place of Distribution Place of Distribution

Promotion

• xx

MICROWAVE OVENS MARKET IN INDIA 2013.PPT

Thank you for the attention The Microwave Ovens Market – India 2013 report is a part of Netscribes’ Consumer Goods Series. For more detailed information or customized research requirements please contact:

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MICROWAVE OVENS MARKET IN INDIA 2013.PPT