Motors Market – India
June 2014
2
SAMPLE Executive Summary
Market
Drivers & Challenges
Trends
Competition
Robust growth of the end user industries is expected to accelerate the demand for motors in the Indian market
Indian AC Motors market was valued at INR xx bn in 20-- and is estimated to reach INR yy bn by 20--
Energy Efficient Motors
Customer Services
Drivers
Rise in Infrastructural Investments
Industrial Growth
Developments in the Power Sector
Growth in Consumer Durables
Agricultural Pumps Demand
Robust Automotive Market
Healthy Economic Outlook
Challenges
Volatile Raw Materials Prices
Lack of Capacity Utilization
Consumer Outlook
Major Players
Player 1 Player 2
Player 3 Player 4
Player 5 Player 6
MOTORS MARKET IN INDIA 2014.PPT
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•Macro Economic Indicators
•Introduction
•Market Overview
•Motors Demand Scenario
•Motors Manufacturing Hub
•Supply Chain Analysis
•Export - Import
•Drivers and Challenges
•Government Initiatives & Regulations
•Trends
•Competitive Landscape
•Strategic Recommendations
•Appendix MOTORS MARKET IN INDIA 2014.PPT
4
SAMPLE Economic Indicators (1/3)
11
12
13
14
15
y3
z3
Q2
x2
y2
z2
a2
Q1
x1 y1
z1
a1
INR tn
Q4
x4
y4
z4
Q3
x3
20----- 20----- 20----- 20-----
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
%
Nov 20-- - Dec 20--
e
Oct 20-- - Nov--
d
Sep 20-- - Oct 20--
c
Aug 20-- - Sep 20--
b
Jul-- - Aug 20--
a
MOTORS MARKET IN INDIA 2014.PPT
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AC motors experience greater preference for a wide variety of applications in industrial to domestic sectors
AC Motors
• This segment comprises Low Tension (LT) motors and High Tension (HT) motors
• It offers advantages such as simple design, reliable operations and easily found replacements
• AC LT motors rank among the lowest priced motors for applications that need more than ½ HP of power owing to the
simple design of the motor
0
5,000
10,000
15,000
20,000
25,000
f1
20--e
E
e2
e1
20--e
D
d2
d1
20--e
C
c2
c1
20--e
B
b2
b1
20--
A
a2
a1
‘000 KW
20--e
F
f2
YY XX
Note: Motors industry is characterized by the presence of a diverse product range and is a highly fragmented market owing to which an exact estimate of the market segments in terms of value has not been covered
MOTORS MARKET IN INDIA 2014.PPT
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AC Motors – Segment Overview
AC Motors
XX
MOTORS MARKET IN INDIA 2014.PPT
60
40
20
0
D
d2
d1
2015e
C
c2
c1
2014e
B
b2
b1
2013
A
a2
a1
bn
X
2018e
F
f2
f1
2017e
E
e2
e1
2016e
YY XX
YY
10
5
0
bn Y
2018e
a6
2017e
a5
2016e
a4
2015e
a3
2014e
a2
2013
a1
40
30
20
10
0
bn Z
2018e
b6
2017e
b5
2016e
b4
2015e
b3
2014e
b2
2013
b1
7
SAMPLE Motors Market – Segments (2/3)
d c
b
a
d c b a
Motors Market – Demand Share (2/3)
a3
a2
a1
a4
a3 a2 a1 a4
LT Squirrel Cage Motors (2013) LT Slip Ring Motors (2013)
• Total volume of LT Squirrel Cage Motors in the market was around aa units in 20--
• LT Squirrel cage motors of frame size xx accounted for the highest share of the market in 20--
• Total volume of LT Slip Ring Motors in the market was around bb units in 20--
• LT Slip Ring motors of frame size yy accounted for the highest share of the market in 20--
MOTORS MARKET IN INDIA 2014.PPT
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New demand dominates the overall procurement demand for motors across the domestic market
Motors Market – Demand Share (2013)
Regional Ranking - Demand Wise (2013)
b
a
b a
B%
a%
b
a
South & East
West
North
MOTORS MARKET IN INDIA 2014.PPT
Demarcations on the map are indicative
9
Supply Chain Analysis (1/2)
• XXX • YYY • ZZZ
Purchase Decision Influencers
XX YY ZZ AA
b
a
b a
Motors Market – Share of Sub-Contracting (2013)
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE
`
AA
BB
Motors Industry Export-Import – Summary
Product Coverage
DD
EE
FF
GG
MOTORS MARKET IN INDIA 2014.PPT
CC
11
SAMPLE Exports and Imports (Country-wise) (HS Code – 850151)
Exports (Value) Exports (Volume)
Imports (Value) Imports (Volume)
b
a
d e f
c
b
c
d
e
f
a
x4
x5
x6 x1
x3
x2
x2
x1
x3
x5
x6
x4
a4 a2
a1
a3
a6
a5
a5
a6
a1
a3
a2
a4
n
y
m o
z
x
n
z
y
o
x
m
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE
Rise in Infrastructural Investments
Growing investments for strengthening the infrastructure across India will enhance the demand for motors
• AA
• BB
• CC
• DD
Impact
Infrastructural Investments (12th Five Year Plan)
Development in infrastructure sectors will generate demand for a wide variety of products such as cranes, fans, cooling
equipment, appliances, pumps, conveyor equipment
etc. for their processes which, in turn, will drive demand for
motors 0
2,000
4,000
6,000
8,000
10,000
12,000X
20-----
x6
20-----
x5
20-----
x4
20-----
x3
20-----
x2
20-----
x1
In bn
MOTORS MARKET IN INDIA 2014.PPT
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Industrial Growth (4/5)
Demand for motors will expand with the growth of the machine tools sectors in India
Machine Tools Market Overview
• AA
• BB
• CC
• DD
• EE
-50
0
50
100
D
bn
x4 x1
B
x3
A C
x2
A
E
-50
0
50
100
m Z
m1 m3 m4
bn
Y
m2
X n
B 20-- 20--
XXXXXX Note: XXX
MOTORS MARKET IN INDIA 2014.PPT
Impact
14
SAMPLE …order to promote the adoption of energy efficient motors and reduce energy related costs
Note: Years denote the average lifetime of a particular motor
Focus on Energy Efficiency (2/2)
Sector Conservation Potential
Energy Handled by Motors
Industrial Sector A X
Agriculture Sector
B Y
Domestic Sector C Z
Commercial Sector
D M
0
10
20
30
40
50
60
70
80
90
100
%
kW
z
z3
z1 z2
y
y3
y1 y2
x
x3
x1 x2
Energy Cost Installation and Service Cost Purchase Price
Motors - Life Cycle Costs
A Years B Years C Years
Energy Efficiency Motors - Energy Saving Potential
AAA
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE IS Standard AA – Comparative Analysis (2/3)
IS AA1 vs. AA2
CLAUSE/
DESCRIPTION IS AA1 IS AA2
XX xx1 xx2
YY yy1 yy2
ZZ zz1 zz2
AA aa1 aa2
BB bb1 bb2
CC cc1 cc2
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Category
At the end of 10th Plan
At the end of 11th Plan
Expected addition during 12th Plan
Total by the end of 12th Plan (Expected)
Transmission Lines (AC & HVDC)
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
Figures in ckm
Sub Stations (AC & HVDC)
Total – HVDC terminal capacity in MW
-- -- -- --
Total – AC Substation capacity in MVA
-- -- -- --
Figures in MVA/MW
Power Transmission Network Expansion – 12th Five Year Plan
Required Fund for development of
transmission system during 12th Plan
Period
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
INR bn
20------ AAA x y z Central Sector
State Sector
Private Sector
Note: ckm refers to circuit kilometer MW refers to Mega Watt and MVA refers to Mega Volt Ampere
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Energy Efficient Motors Penetration
Energy Efficient Motors Demand Share
Energy Efficient Motors (3/3)
YY
XX
YY2
XX1
Others
Energy Efficient Motors
2013 2018e
Adoption of energy efficient motors can be accelerated by imposition of government regulations and rise in consumer
awareness
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Porter’s Five Forces Analysis
Competitive Rivalry • xxx
Bargaining Power of Buyers • xxx
Threat of New Entrants • xxx
Impact Medium
Impact High
Impact Medium
Bargaining Power of Suppliers • xxx
Impact Medium to High
Threat of Substitutes • xxx
Impact Low to Medium
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2012)
Player 1 Player 2 Player 3
Market Capitalization (INR mn) XX YY ZZ
Share Price (INR) XX1 YY1 ZZ1
EV/EBITDA (x) XX2 YY2 ZZ2
EV/Revenue (x) XX3 YY3 ZZ3
PE Ratio XX4 YY4 ZZ4
Note: Top 4 Public companies based on the Market Capitalization; Market Capitalization is as on --/-/2014, Share Price is as on --/-/2014 and PE ratio is as on --/-/2014
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Key Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)
Competitive Benchmarking (x/x)
-10
0
10
20
30
40
%
xxx
F E
xxx
D
C
xxx
B
A
Net Margin Operating Margin
• xxx
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Key Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)
Competitive Benchmarking (x/x)
-50
0
50
100
%
xxx
F E
xxx
D
C
xxx
B
A
Return on Capital Employed Return on Equity
0.0
0.5
1.0
1.5
2.0
xxx
Y
xxx
H
xxx
G
Current Ratio
• xxx
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Key Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)
Competitive Benchmarking (x/x)
0.0
0.5
1.0
1.5
xxx
A3
xxx
A2
xxx
A1
Asset Turnover Ratio
• xxx
MOTORS MARKET IN INDIA 2014.PPT
23
SAMPLE
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category Products/Services
Name Designation
Pune Head Office
Public: Domestic Company – Player 1 (x/x)
MOTORS MARKET IN INDIA 2014.PPT
24
SAMPLE Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR 1417.8 mn in FY 2012, as compared to net profit of INR 1397.4 mn in FY 2011
• The company reported total income of INR 10,252.73 mn in FY 2012, registering an increase of 26.8% over FY 2011
• The company earned an operating margin of 17.0% in FY 2012, an increase of 2.44 percentage points over FY 2011
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn) 42,886.0
Total Enterprise Value (INR mn) 38,015.3
EPS (INR)* 58.49
PE Ratio (Absolute)* 17.78
Particulars y-o-y change
(2012-11) 2012 2011 2010 2009
Profitability Ratios Operating Margin 2.44 17.00% 14.56% 19.39% 25.14%
Net Margin -3.46 13.83% 17.28% 19.03% 11.02%
Profit Before Tax Margin 0.60 19.20% 18.60% 20.52% 11.43%
Return on Equity -1.84 16.87% 18.70% 18.00% 16.74%
Return on Capital Employed 5.09 20.54% 15.45% 18.26% 38.19%
Return on Working Capital 13.52 39.79% 26.28% 28.62% 86.59%
Return on Assets 4.25 17.18% 12.93% 14.24% 31.01%
Return on Fixed Assets 5.17 58.36% 53.19% 54.69% 70.72%
Cost Ratios Operating costs (% of Sales) -2.25 82.58% 84.83% 80.50% 74.61%
Administration costs (% of Sales)
-1.42 6.67% 8.09% 7.31% 8.48%
Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
Liquidity Ratios Current Ratio -9.39% 3.64 4.01 3.26 2.91
Cash Ratio -12.89% 2.06 2.37 1.92 1.14
Leverage Ratios Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios Fixed Asset Turnover -4.45% 3.35 3.51 2.81 2.79
Asset Turnover 15.72% 0.99 0.85 0.73 1.22
Current Asset Turnover 27.36% 1.66 1.30 1.02 2.24
Working Capital Turnover 31.90% 2.28 1.73 1.47 3.41
Capital Employed Turnover 14.52% 1.19 1.04 0.94 1.50
Improved Decline
Net Profit/Loss Total Income
10252.78084.96045.35997.9
1,417.81,397.4
1,150.2
660.9
0
5000
10000
15000
0
500
1,000
1,500
INR mn INR mn
2012 2011 2010 2009
Public: Domestic Company – Player 1 (x/x)
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Key Business Segments Key Geographic Segments
Business Highlights
Description News
11%
0%
50%
100%
2012
67%
11% 21%
2011
69%
21%
2010
66%
11% 23%
2009
67%
12% 21%
xxx xxx xxx
7%0%
50%
100%
2012
10%
83%
2011
8% 6%
86%
2010
7% 8%
85%
2009
4% 9%
87%
xxx xxx xxx
Public: Domestic Company – Player 1 (x/x)
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE
• xxx • xxx
• xxx • xxx
T O
W S
Public: Domestic Company – Player 1 (x/x)
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Private: Domestic Company – Player 2 (x/x)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Name Designation
Bangalore
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Private: Domestic Company – Player 2 (x/x)
Shareholders of the Company Ownership Structure
Name No. of Shares held
XXX
XXX
XXX
xxx xxx xxx
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Financial Snapshot Key Ratios
Particulars y-o-y change
(2012-11) 2012 2011 2010 2009
Profitability Ratios Operating Margin -0.66 2.49% 3.15% 7.82% 7.17%
Net Margin -0.15 1.78% 1.93% 5.11% 6.50%
Profit Before Tax Margin -0.66 2.49% 3.15% 7.82% 7.17%
Return on Equity 0.00001 0.0001% 0.0001% 0.0002% 0.0003%
Return on Capital Employed -0.00002 0.0001% 0.0001% 0.0003% 0.0003%
Return on Working Capital 0.000001 0.000209% 0.000211% 0.0004% 0.0003%
Return on Assets -0.00001 0.0001% 0.0001% 0.0002% 0.0003%
Return on Fixed Assets -0.00003 0.0003% 0.0003% 0.0014% 0.0083%
Cost Ratios Operating costs (% of Sales) 0.66 97.51% 96.85% 92.18% 92.83%
Administration costs (% of Sales)
N.A. N.A. N.A. N.A. N.A.
Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
Liquidity Ratios Current Ratio -9.75% 1.58 1.75 1.96 2.52
Cash Ratio -33.53% 0.17 0.26 0.33 1.01
Leverage Ratios Debt to Equity Ratio 151.97% 0.25 0.10 0.00 0.07
Debt to Capital Ratio 121.87% 0.20 0.09 0.00 0.06
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios Fixed Asset Turnover 13.44% 0.00012 0.00011 0.00018 0.00115
Asset Turnover 8.16% 0.00002 0.00002 0.00002 0.00004
Current Asset Turnover 7.77% 0.00003 0.00003 0.00003 0.00003
Working Capital Turnover 25.98% 0.00008 0.00007 0.00005 0.00004
Capital Employed Turnover 19.72% 0.00004 0.00004 0.00004 0.00004
Private: Domestic Company – Player 2 (x/x)
Improved Decline
Financial Summary
• The company earned a net profit of INR 624 in FY 2012, as
compared to net profit of INR 583 in FY 2011
• The company reported total income of INR 35,128 in FY 2012,
as compared to INR 30,200 in FY 2011
• The company earned an operating margin of 2.49% in FY 2012,
a decrease of 0.66 percentage points over FY 2011
• The company reported debt to equity ratio of 0.001 in FY 2011,
a decrease of 98.87% over FY 2010
Net Profit/Loss Total Income
35,128.030,200.0
35,029.0
29,919.0
624.0
1791.01945.0
0
10,000
20,000
30,000
40,000
0
500
1000
1500
2000
INR INR
2012 2011
583.0
2010 2009
MOTORS MARKET IN INDIA 2014.PPT
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SAMPLE Business Highlights
Private: Domestic Company – Player 2 (x/x)
Description News
MOTORS MARKET IN INDIA 2014.PPT
31
SAMPLE
• xxx • xxx
• xxx • xxx
T O
W S
Private: Domestic Company – Player 2 (x/x)
MOTORS MARKET IN INDIA 2014.PPT
32
Thank you for the attention
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Motors Market – India report is part of Netscribes' ‘Energy' Industry Series. For more detailed information or customized research requirements please contact:
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MOTORS MARKET IN INDIA 2014.PPT