Telecom equipment market in india 2013 sample by Netscribes, Inc.

Telecom Equipment Market India Telecom Equipment Market ‐ July 2013

Executive Summary

Market Overview

Drivers & Challenges

Market Trends

 As per 20‐‐ ‐ ‐‐, telecom equipment worth INR x1 bn was consumed in India  Segment1 accounts for around x2% of the total telecom equipment industry in India  Telecom equipment import had grown at a CAGR of around x3% between 20‐‐ and 20‐‐  Currently segment2 generates maximum revenue, though future of segment3 looks promising Drivers:

Challenges:

 Growth in Wireless Subscriber Base  Next Generation Voice and Data Services  Government Initiatives and Progressive Reforms in the Industry  IPv4 to IPv6 Migration

 Security Concerns  High Telecom Equipment Imports

 Telecom Equipment Certification  Android Smartphones and Tablets  Strengthening of R&D  Infrastructure Sharing Major Players

Competitive L d Landscape

Company A

Company B

Company C

Company D

Company E

Company F

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

•Economic Indicators •Economic Indicators •Introduction •Market Overview •Market Overview •Drivers and Challenges •Market Trends •Market Trends •Competitive Landscape •Strategic Insights St t i I i ht •Appendix

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Introduction Telecom Equipment ‐ Overview • Economic and social development of India is significantly influenced by its telecom industry y q p • Modern and robust telecommunication systems demand state‐of‐the‐art telecom equipment • Cellular network technology such as 3G and 4G, broadband internet services, telephony services, network requirements and other telecom products and services has led to increased demand for telecom equipment • Telecom equipment can be broadly classified in carrier equipment, enterprise equipment and user devices segments Telecom equipment can be broadly classified in carrier equipment enterprise equipment and user devices segments • Alternatively, it can also be classified in two categories in terms of type of consumer  End‐user equipment are meant for general consumers and telecom network equipment find its takers amongst industrial and institutional consumers

• In telecom network equipment category, fixed and mobile switches, base stations, routers, & transmission In telecom network equipment category fixed and mobile switches base stations routers & transmission equipment largely represent active equipment, whereas towers, shelters & cables falls under passive equipment Segment1

Category1 Segment2

Telecom Equipment

Segment3

Category2

Segment4 Segment5

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Majority of the countries are import‐dependent excepting few which supply telecom equipment to the rest Market Overview – Global • Global telecom equipment market is expected to be affected by aspect1 in the coming years  Spending on element1 will be around INR x1 in 20‐‐, as compared to INR x2 in 20‐‐

• The country1, country2, country3 are the few countries distinctively leading in global telecom equipment production • Country4, country5, country6 and country7 are the major countries driven by exports • Majority of the other countries including country8, country9, country10, country11 and country12 are largely import Majority of the other countries including country8 country9 country10 country11 and country12 are largely import dependent

Telecom Equipment Import‐Export, Production and Usage Levels – Global Country

Imports

Exports

Production

Consumption

China

Low/Medium/High

France

Low/Medium/High

Germany

Low/Medium/High

Japan

Low/Medium/High

South Korea

Low/Medium/High

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Significant demand exists for telecom equipment in India but they are being catered by element1 Market Overview – India (‐/‐) • Growth in telecom sector has enabled telecom equipment companies to flourish in India, regardless of segmen1, G th i t l t h bl d t l i t i t fl i h i I di dl f 1 segment2 or segment3 • While majority of the domestic telecom equipment companies started off as entity1, the focus is gradually shifting to element2

• As per 20‐‐ ‐ ‐‐, telecom equipment worth INR x1 bn was consumed in India • Segment1 accounts for around x2% of the total telecom equipment industry in India • Country1 and Country2 telecom equipment products dominate the market in India at present

Telecom Equipment – Market Size & Growth

Telecom Equipment – Domestic Consumption

INR bn b1 a1

2012

2013e

2014e

2015e

2016e

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

c2 6

Drivers & Challenges

Drivers

Challenges

Growth in Wireless Subscriber Base

Security Concerns

Next Generation Voice and Data Next Generation Voice and Data Services

High Telecom Equipment Imports

Government Initiatives and Progressive Reforms in the Industry IPv4 to IPv6 Migration

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Market Trends (‐/‐)

SAMPLE Mobile Battery

• Finding 1 Telecom Equipment Certification

Strengthening of g g R&D

 Sub‐finding 1

• Finding 2 • Finding 3

• Finding 4 • Finding 5 Fi di 5 • Finding 6

• Finding 7 • Finding 8 • Sub‐finding 2

• Finding 9 Finding 9

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Porter’s Five Forces Analysis

SAMPLE Threat of New Entrants

Impact

Impact Impact Bargaining Power of Suppliers

Competitive Rivalry

Bargaining Power of Buyers

Impact Threat of Substitutes

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Competitive Benchmarking (‐/‐) Public Trading Comparables (FY 20‐‐) Company1

Company2

Company3

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

S SAMPLE X3

EV/Revenue (x) /

PE Ratio

Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization and product segments, Share Price and PE ratio is as of ‐‐/‐‐/20‐‐ TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Competitive Benchmarking (‐/‐) Key Ratios of Top 3 Companies – Operational Basis (FY 20‐‐) (‐/‐) % a b c d e

• Finding 1 Finding 1 • Finding 2 • Finding 3 • Finding 4 g

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Major Public Companies – Summary Profit/Loss (INR mn)

Size of the Bubble represents Market Capitalization in INR mn

Total Income (INR mn)

company1

company2

company3

company4 The list is not exhaustive

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

SAMPLE

Public: Domestic Company – company1 (1/4) Company Information Corporate Address

Company Address

Tel No.

+91‐xx‐ yyyyyyyyy

Fax No.

+91‐ww‐zzzzzzzz

Website

www.companyA.com

Year of Incorporation p

19‐‐

Ticker Symbol

‐‐‐‐‐‐

Stock Exchange

Exchange Name

Offices and Centres – India

Head Office

Products and Services Products and Services Category

Products/Services

Key People Service

• Product 1 Product 1 • product 2 • product 3

N Name

D i ti Designation

Person 1

Designation

Person 2

Designation

Person 3

Designation

Note: The list of products and services is not exhaustive TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

SAMPLE

Public: Domestic Company – company1 (2/4) Financial Snapshot i i lS h Revenue INR mn

Total Income i

a b

K Key Ratios i

Net Profit/Loss

Profit INR mn

d e

g 20‐‐

20‐‐

Financial Summary

• The company reported total Income of INR y4 mn in FY 20‐‐ registering an increase of x% over FY 20 registering an increase of x% over FY 20‐‐ • The company earned an operating margin of p% in FY 20‐‐, a decrease of y percentage points over FY 20‐‐ • The company reported debt to equity ratio of q in FY 20‐‐, an increase of r% over FY 20‐‐

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

y‐o‐y change (2011‐10)

2011

2010

2009

‐2.99

35.05%

38.03%

47.29% 49.95%

‐3.81

30.66%

34.47%

39.25% 45.23%

‐2.07

31.01%

33.08%

38.38% 49.98%

‐0.50

23.82%

24.33%

38.05% 31.21%

1.34

17.73%

16.39%

23.84% 16.70%

0.41

18.62%

18.21%

24.31% 19.18%

‐0.53

12.87%

13.40%

18.29% 14.25%

156.69

296.80%

140.10% 232.55% 173.54%

7.62

17.84%

10.22%

16.89% 16.51%

‐1.24

11.68%

12.93%

8.55%

5.13%

‐1.67 1.67

4.27%

5.93%

6.09%

2.32%

2008

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

• The company earned a net profit of INR x4 mn in FY 20‐‐, as compared to net profit of INR x3 mn in FY 20‐‐

Indicators

Particulars

Value (dd/mm/2013) z1 z2 z3 z4

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

Liquidity Ratios Current Ratio Cash Ratio

‐40.67%

5.05

8.52

10.97

13.98

1.02%

3.54

3.51

5.06

11.04

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio b l Interest Coverage Ratio

4.39%

0.85

0.82

1.08

1.19

‐10.53%

0.35

0.39

0.48

0.52

28.66%

8.40

6.53

8.02

22.36

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

137.15%

9.47

3.99

5.74

3.69

7.52%

0.41

0.38

0.45

0.30 0.38

4.02%

0.48

0.46

0.55

14.45%

0.59

0.52

0.60

0.41

9.64%

0.76

0.69

0.94

0.66

Improved

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Decline

SAMPLE

Public: Domestic Company – company1 (3/4) Key Business Segments

Key Geographic Segments

abc

abc Company filed revenue Company filed revenue under single business segment

a b

xyz

20‐‐

g 20‐‐

Key Information Description

Details

Overview

• Company1 engages in the manufacture and sale of telecommunication equipment primarily in India

Extended Product Portfolio

• It offers a range of telecom products and solutions, including switching, transmission, access, and subscriber premises equipment • The company offers global system for mobile products, such as Base Trans‐Receiver Station (BTS), BTS Shelter, roof top towers, transceivers, code division multiple access products based on digital wireless technology to provide mobile communication

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Public: Domestic Company – company1 – SWOT Analysis (4/4)

• Strength 1

• Weakness 1

• Strength 2

• Weakness 2

• Strength 3

• Weakness 3

• Opportunity 1

• Threat 1

• Opportunity 2

• Threat 2

• Opportunity 3

• Threat 3

SAMPLE TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

Strategic Insights (‐/‐) •Finding 1

Recommendation1 • Finding 2 Finding 3 • Finding 3 • Finding 4 • Finding 5

Finding 6

Finding 7

Finding 8

Finding 9

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

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

Phone: E‐Mail:

+91 22 4098 7600 info@netscribes.com

About Netscribes Netscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation of this report, Netscribes is not responsible for any loss or damage arising from use of this document This document is the sole property of Netscribes. and Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT