market research report : tire industry in india 2014 - sample
DESCRIPTION
For the complete report, get in touch with us at: [email protected] Abstract: Netscribes’ latest market research report titled Tire Industry in India 2014 captures the overall domestic tire market. The tire industry comprises pneumatic, semi pneumatic, retreads, solid and cushion tyres. Globally, the industry is expected to grow at a steady pace due to the rising automobile demand from all regions especially Asia Pacific.TRANSCRIPT
Tire Industry – India
November 2014
2 TIRE INDUSTRY IN INDIA 2014.PPT
Executive Summary
Drivers:
Replacement Demand
Rising Automobile Sales
Scope in Radialization
Increasing Exports
Increasing Investment in Road Construction
Market Overview
Drivers & Challenges
Key Trends
Competitive Landscape
Global tire market is expected to grow at a CAGR of p% through 20-- to 20-- to reach INR yy bn in 20--
Huge demand from Asia Pacific region will boost the industry’s growth
Indian tire industry is expected to reach INR xx bn in 20--, growing at a CAGR of q%
Retreading of Tires
Emergence of Tubeless Tire Market
Advent of Green Tires
Focus on Radial Tires
Challenges:
Price Volatility in Rubber Prices
Absence of Raw Materials
Inappropriate Duty Structure for Natural Rubber
Key Players
Company A Company B Company C
Company D Company E Company F
3
•Macroeconomic Indicators
•Introduction
•Market Overview
•Export-Import
•Drivers & Challenges
•Government Initiatives
•Trends
•Competitive Landscape
•Opportunities
•Strategic Recommendations
•Appendix
TIRE INDUSTRY IN INDIA 2014.PPT
4 TIRE INDUSTRY IN INDIA 2014.PPT
Rising automobile demand from Asia Pacific region to boost global tire market
• Global tire market is expected to grow at a CAGR of p% through 20-- to 20-- to reach INR xx bn in 20--
• Huge demand from the replacement tire segment and increasing commercial and passenger vehicles sales in developing countries is expected to drive growth in the world market
• Asia Pacific region is expected to show the strongest growth fuelled by huge demand from India and China
• Further, new construction and infrastructural projects and increase in middle class population as well as rise in disposable income of this section in developing countries will boost the global tire industry’s growth
• However, unstable prices of raw materials and increasing dependency of tire manufacturers on OEMs for sales are some of the challenges faced by the global tire industry
Market Overview – Global (1/2)
y4
y3
y2
y1
0
INR bn
p%
20--e
x6
20--e
x5
20--e
x4
20--e
x3
20--e
x2
20--
x1
Global Tire Industry – Size and Growth (Value)
Note: OEM refers to Original Equipment Manufacturer
5 TIRE INDUSTRY IN INDIA 2014.PPT
Growth in automobile sales and advent of new vehicle models has been the key driving force to the tire industry
• Indian tire industry is expected to grow at a CAGR of p% through FY 20-- to FY 20-- to reach INR x6 bn in 20--.
• It manufactures a diversified range of tires catering to the various Indian transport vehicles
However, specialized tires such as aero tires are not manufactured in India
• Organized sector accounts for a major share in the overall tire sector while the unorganized sector is dominant in the bicycles segment
• Performance of the tire industry is closely related to that of the automotive sector.
• There has been a significant increase in the tire supplies to OEMs across all segments
Market Overview – India (1/2)
y2
y3
y4
y1
0
INR bn
p%
FY 20--e
x6
FY 20--e
x5
FY 20--e
x4
FY 20--e
x3
FY 20--e
x2
FY 20--
x1
Indian Tire Industry – Size and Growth (Value)
6
SAMPLE Exports of New Rubber Pneumatic Tires (1/2)
a4
a3
a2
a1
P%
FY 20--
x4
FY 20--
x3
FY 20--
x2
FY 20--
x1
INR mn
Export of New Rubber Pneumatic Tires (Value-Wise)
b5
b4
b3
b2
b1
mn Q%
FY 20--
y4
FY 20--
y3
FY 20--
y2
FY 20--
y1
Export of New Rubber Pneumatic Tires (Volume-Wise)
TIRE INDUSTRY IN INDIA 2014.PPT
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SAMPLE Exports of New Rubber Pneumatic Tires (2/2)
x2
x6 x5
x4
x3
x1
x7
f1
b1
d1
g1
c1
e1
a1
y4
y1
y2
y3
y5 y6
y7
c1
a1
b1
g1
e1
d1
f1
FY20-- FY20--
Exports Based on Volume – Product-Wise Exports Based on Value – Product-Wise
z3
z1 z2
b2
c2 a2 d2 d1
d3
c2
b2
a2
FY20-- FY20--
Export Based on Value – Country-Wise
TIRE INDUSTRY IN INDIA 2014.PPT
8 TIRE INDUSTRY IN INDIA 2014.PPT
Drivers & Challenges – Summary
Drivers
Replacement Demand
Rising Automobile Sales
Scope in Radialization
Increasing Exports
Increasing Investment in Road Construction
Challenges
Price Volatility in Rubber Prices
Absence of Raw Materials
Inappropriate Duty Structure for Natural Rubber
9 TIRE INDUSTRY IN INDIA 2014.PPT
Order books of the players is growing owing to strong demand from replacement of tires
• Replacement demand for tires accounts for more than xx% of the total demand for tires
• Increasing replacement demand is generating strong order books for the players in the industry
• Business catering to the replacement of tires is a high margin business generating strong revenues
• Replacement market is dominated by widespread dealer distribution network including exclusive dealer of the companies as well as multi company dealers
Replacement Demand Impact
p1%
p3%
p2%
y z x
Replacement Demand in T&B Segment Replacement Demand in PV Segment
Note: T&B refers to Trucks and Buses, PV refers to Passenger Vehicles
Apr-Dec FY 20-- Apr-Dec FY 20--
q1%
q3%
q2%
a c b
10 TIRE INDUSTRY IN INDIA 2014.PPT
Trends – Summary
Retreading of Tires
Emergence of Tubeless Tire Market
Focus on Radial Tires Advent of Green Tires
Key Trends
11
Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2014)
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 is as on 30/10/2014, Share Price is as on 29/10/2014 and PE ratio is as on 30/10/2014
TIRE INDUSTRY IN INDIA 2014.PPT
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SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/4)
Competitive Benchmarking (2/5)
a4
a3
a2
a1
%
Company C
z3 y3
x3
Company B
z2 y2
x2
Company A
z1 y1
x1
Operating Margin Gross Margin Net Margin
• Company B recorded gross margin of x2%, higher than that of Company A and Company C which recorded gross margin of x1% and x3% respectively
• Company B recorded highest operating margin of y2%, followed by Company C and Company A which recorded operating margin of y3% and y1% respectively
• Company B recorded a net margin of z2%, higher than that of Company C and Company A which recorded net margin of z3% and z2%
TIRE INDUSTRY IN INDIA 2014.PPT
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SAMPLE Public: Domestic Company – Company A (1/4)
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
Name Designation
Person 1
Person 2
Person 3
Person 4
Noida
Category Products/Services
Headquarters
TIRE INDUSTRY IN INDIA 2014.PPT
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SAMPLE Financial Snapshot Key Ratios
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--
• The company reported debt to equity ratio of d1 in FY 20--, an increase of d2% over FY 20--
Key Financial Performance Indicators
Indicators Value Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Particulars 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 Decline
Net Profit/Loss Total Income
b4
b3
b2
b1
a4
a3
a2
a1
y3
x3
y2
x2
20--
y1
x1
INR mn INR mn
y4
x4
20-- 20-- 20--
Public: Domestic Company – Company A (2/4)
TIRE INDUSTRY IN INDIA 2014.PPT
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SAMPLE
TIRE INDUSTRY IN INDIA 2014.PPT
Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview • Company A is engaged in the manufacture and sales of tires for more than 40 years
Manufacturing Facilities
• Manufacturing presence in Asia, Europe and Africa
• Recently in Sep 2014, confirmed Hungary as the location for the first greenfield manufacturing facility outside India
New Ventures and Product Launch
• In Feb 2014, announced entry in Qatar to tap the potential market for truck-bus radials and high performing passenger car tires
• In May 2014, introduced two new tires Apollo Alnac 4G All Season and Apollo Alnac 4G Winter tires at the international tire exhibition in Germany
• Opened its first branded retail outlet in Kuwait in Aug 2014
s3
s2
s1
20--
p4%
20--
p3%
20--
p2%
20--
p1%
b3
b2
b1
2014
r3 z4
9%y4
x4
2013
r2 z3
y3
x3
2012
r1 z2
y2
x2
2011
z1 y1
x1
Public: Domestic Company – Company A (3/4)
q a4 a3 a2 a1
16
SAMPLE
T O
W S
Public: Domestic Company – Company A (4/4)
TIRE INDUSTRY IN INDIA 2014.PPT
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Opportunity Areas
Gujarat Tamil Nadu and Andhra Pradesh
Maharashtra
Tire manufacturing plants should be built near the major automobile production or assembly facilities to capitalize on the growing opportunities provided by the existing as well as the emerging auto hubs in India
Opportunity Areas – Summary
TIRE INDUSTRY IN INDIA 2014.PPT
NCR and Surrounding
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SAMPLE
X
Y
Z
Strategic Recommendations
TIRE INDUSTRY IN INDIA 2014.PPT
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Thank you for the attention
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TIRE INDUSTRY IN INDIA 2014.PPT