market research report :water and wastewater management in india 2013
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Water and Wastewater Management (WWWM) IndiaWater and Wastewater Management (WWWM) – India
July 2013
Executive Summary
Market
Indian water and wastewater management market is currently valued at INR x bn It is expected to grow with a CAGR of y% till 20‐‐Many small players are entering the marketWWW treatment demand arises primarily from three major sectors: Agricultural, industrial and domestic Industrial water treatment is expected to drive this market in the future
Drivers & Challenges
Industrial water treatment is expected to drive this market in the future
Drivers– Rising Population and Urbanization– Rapid Industrialization– Chronic Ground Water Contamination
Challenges– Poor Infrastructure– Water Pricing Mechanism– Unaccounted‐for WaterChallenges Chronic Ground Water Contamination
– Fluctuations in Ground Water Level – Operational Advantages in India
Unaccounted for Water
Government Bodies and
Requirement for Efficient Governance of Water Flow of Authority of Water Institutions in India
Institutional Framework in Urban Water Supply Zth Five Year Plan Investments
Recent D l t
DIWALI Concept Entry of Foreign Players
Bodies and Initiatives
y Incentive Structure Policy Measures by Government of India
Increasing Government Thrust Jawaharlal Nehru National Urban Renewal Mission
Developments
Competitive Landscape
Popularity of PPP Model
Major Players
Player A Player B Player C
Player D Player E Player F
2WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
Player D Player E Player F
•Macroeconomic Indicators•India’s Water Situation
d i•Introduction•Sectoral Demand for Water•Market Overview•Market Overview •Wastewater Treatment Techniques•Drivers & Challenges•Drivers & Challenges•Government Bodies and Initiatives•Recent Developmentsp•Competitive Landscape•Market Entry
3WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
•Appendix
SAMPLE Economic Indicators (1/3)
Gross Fiscal Deficit: Monthly
600
500
INR bnx6
x5x3500
400
300
200
100
x4
x3
x2
x1
Exchange Rate: Monthly
100
0Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐
g y
55.0x2
USD/INR
x1
54.0
54.5 x3 x6
x2x5
x4
4
53.5Month 20‐‐Month 20‐‐ Month 20‐‐ Month 20‐‐Month 20‐‐Month 20‐‐
WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
SAMPLEDifferent water quality standards are laid out by the Regulatory Authorities in India
SAMPLE Indian Water Quality Standards
Class of water
Designated‐Best‐Use Criteria/Specificationswater
X1 Segments • Point 1• Point 2• Point 3• Point 4
X2 Segments • Point 1• Point 2• Point 3• Point 4
X3 Segments • Point 1X3 Segments Point 1• Point 2• Point 3• Point 4
X4 Segments • Point 1• Point 2• Point 2• Point 3
X5 Segments • Point 1• Point 2• Point 3• Point 4
5WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
• Point 4
Below X6 Segments • Point 1
WWWM goods & services facilitates the process of removal, treatment and reuse/disposal of wastewater
Water and Wastewater Management – Introduction (2/2)
Wastewater Goods and Services Wastewater Treatment Procedures
•Point 1•Point 2
X Y Z
A •Point 3•Point 4•Point 5 • X1
• X2
• Y1
• Y2
• Z1
• Z2
•Point 1
• X3
• X4
• X5
• X6
• Y3
• Y4
• Z3
• Z4
B
•Point 2•Point 3•Point 4•Point 5•Point 6
X6
• X7
6WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
Point 6•Point 7 Point 1
Agricultural sector is the largest consumer of water in the form of irrigation
Current Water Usage Pattern in India : Market Forces at Work
Key Market Boosters Key Issues
Segment A• Point 1
• Point 2
• Point 3
• Point 1
• Point 2
Segment B • Point 1 • Point 1
Segment C•Point 1
•Point 2• Point 1
Sustainable Water Consumption – Steps Required
Point 1
Point 2
Point 3
Water Consumption Levels in Various Countries
x2
y2 z2
y1
z1
Segment C
Segment B
Segment A
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Point 3
Point 4BA
x1Segment C
Rapid urbanization and industrialization is expected to spur the Indian WWWM market
Market Size – WWWM (Value‐Wise)
INR bnx6Z% x5
x4x3x2x1
x6Z%
0
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐ 20‐‐e
Wastewater Treatment DemandWastewater Treatment Demand
Z%Y%
S A
X%
Segment B
Segment A
Segment C
8WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
X%
20‐‐
Watershed development projects are an efficient tool to manage natural resources such as water Waste Water
TreatmentWater Treatment
• Point 1• Point 2
Watershed Management Fund Allocation
x4
x3x2
• Point 3
x1
P j t M t Ph
DBCA
X Phase Y Phase Z Phase
Project Management PhasesFinancing pattern of X
A
A C E
B D F
A
B
9WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
Point 1C
Wastewater treatment industry in India mainly adopts the following techniques
SAMPLE Types of Wastewater Treatment Technologies (2/2)
• Point 1A
• Point 2
B• Point 1
• Point 2
C
• Point 1
• Point 2
• Point 3
D• Point 1
10WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
• Point 2
Drivers & Challenges – Summary
Drivers Challenges
Rising Population and Urbanization
Rapid Industrialization
Poor Infrastructure
Water Pricing Mechanism
Chronic Ground Water Contamination
Fluctuations in Ground Water Level
Unaccounted‐for Water
Operational Advantages in India
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Low cost makes India a very attractive destination to set up waste water management plants
ImpactOperational Advantages in India
• Finding 1
• Sub‐ Finding 1g
A•Point 1•Point 2
Sub‐Point 1
Major Operational Advantages in India
B •Point 1•Point 2
in IndiaC
•Point 1•Point 2
•Point 1
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D •Point 1Sub‐point 1
Certain fundamental requirements need to be fulfilled for the institutional effectiveness of the water sector
SAMPLERequirements for Efficient Governance of Water
Water GovernanceSAMPLE Segment A Segment B
Segment X Segment Y
•X1
•X2
•X3
• Y1• Y2• Y3
•Y1
•Y2•X3
•X4
• Y3• Y4• Y5• Y6• Y7
•Y3
•Y4
13WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
Note: NRW‐ Non revenue water
Recent Developments – Summary
DIWALI Concept
Recent lDevelopments
Popularity of PPP Model Entry of Foreign Players Popularity of PPP Model y g y
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The X concept is expected to address India’s water‐related challenges
X – The ‘X’ Concept (2/2)
Technology Concepts
A B C DA B C D
E F HG
I
Point 1
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Competitive Benchmarking (1/5)
Public Trading Comparables (FY 20‐‐)
Company 1 Company 2 Company 3 Company 4
Market Capitalization (INR mn)
‐ ‐ ‐ ‐
Share Price (INR) ‐ ‐ ‐ ‐
EV/EBITDA (x) ‐ ‐ ‐ ‐
/EV/Revenue (x) ‐ ‐ ‐ ‐
PE Ratio ‐ ‐ ‐ ‐
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Public: Domestic Company – Company A (1/4)
Company Information Offices and Centres – India
Corporate Address Address
Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Tel No. 91
Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website website
Year of Incorporation 19‐‐
Products and Services
Ticker Symbol ‐‐‐‐‐‐
Stock Exchange ‐‐‐
Key People
Products and Services
Category Products/Services
Segment Product 1, product 2, product N D i ti
Head Office
3,………………….
Others Product 1, product 2, product 3………
Name Designation
Person 1 Designation
Person 2 Designation
Person 3 Designation
17
, p , pPerson 4 Designation
WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
i i l S h K i
Public: Domestic Company – Company A (2/4)
Financial Snapshot Key Ratios
Particulars y‐o‐y change (2012‐11)
2012 2011 2010 2009
Profitability RatiosOperating Margin 4.18 6.63% 2.45% 7.56% 6.66%
Net Profit/LossTotal Income
60000
80000
3 000
4,000
INR mn INR mny4y1 y3y2
Net Margin ‐2.44 ‐1.27% 1.18% 0.64% 1.06%
Profit Before Tax Margin ‐3.14 ‐0.31% 2.82% 2.30% 2.89%
Return on Equity ‐8.70 ‐4.22% 4.48% 1.95% 2.94%
Return on Capital Employed 3.74 7.00% 3.26% 8.70% 7.11%
Return on Working Capital ‐13.05 ‐41.88% ‐28.83% 72.52% 84.18%
Return on Assets 1.69 3.30% 1.60% 4.41% 3.16%
0
20000
40000
60000
0
1,000
2,000
3,000
20‐‐
x4x2
20‐‐
x1
20‐‐
x3
20‐‐
Return on Fixed Assets 11.80 20.65% 8.85% 11.80% 9.74%
Cost RatiosOperating costs (% of Sales) ‐7.41 70.17% 77.58% 83.00% 84.27%
Administration costs (% of Sales)
2.55 19.38% 16.84% 6.32% 6.07%
Interest costs (% of Sales) 2.58 7.54% 4.96% 4.85% 4.76%
Financial Summary
• The company earned a net profit of INR x mn in FY 20‐‐, as compared to net profit of INR y mn in FY 20‐‐
• The company reported total income of INR y mn in FY 20‐‐, registering an increase of % over FY 20 Interest costs (% of Sales) % % % %
Liquidity RatiosCurrent Ratio ‐4.44% 0.85 0.89 1.12 1.07
Cash Ratio 7.01% 0.12 0.11 0.11 0.11
Leverage RatiosDebt to Equity Ratio 26.01% 3.65 2.90 2.24 2.26
b i l i
registering an increase of z% over FY 20‐‐
• The company earned an operating margin of y1 % in FY 20‐‐, an increase of x2 percentage points over FY 20‐‐
• The company reported debt to equity ratio of z1 in FY 20‐‐
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) ‐Total Enterprise Value (INR mn) ‐EPS (INR)
Debt to Capital Ratio 5.59% 0.79 0.74 0.69 0.69
Interest Coverage Ratio 71.49% 0.90 0.52 1.58 1.42
Efficiency RatiosFixed Asset Turnover ‐10.53% 3.04 3.40 1.54 1.44
Asset Turnover ‐21.14% 0.49 0.62 0.58 0.47
Current Asset Turnover ‐20.63% 1.08 1.36 1.04 0.79
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EPS (INR) ‐PE Ratio (Absolute) ‐
Working Capital Turnover ‐44.31% ‐6.17 ‐11.09 9.48 12.42
Capital Employed Turnover ‐24.03% 0.70 0.92 0.93 0.84
Improved Decline
Public: Domestic Company – Company A (3/4)
Key Business Segments Key Geographic Segments
100%
Segment A
100%
BA
Company A has earned100%
50%
0%
X
0%
50%
100%
x4
y2 y3
x3
y4
x2
y1
x1
Company A has earned revenues from this segment only for the last X fiscals
Business Highlights
0%
20‐‐
0%
20‐‐ 20‐‐ 20‐‐20‐‐
Description News
Overview
• Operates as a civil engineering construction company in Country A• Involved in designing, engineering, and building (EPC) transportation projects, including bridges, flyovers, roadways, and railways; and power projects, such as nuclear, hydroelectric, and thermal power projects, as well as executing high voltage transmission linesOverview as well as executing high voltage transmission lines
• Engages in oil exploration and realty development businesses• Has initiated talks with investors to sell up to x% stake in its listed subsidiary, Company B• Intends to amalgamate its x% power generating subsidiary Company C with itself
Certifications • It is the only Country A Construction Company to have been accredited with X for all fields of Civil
19WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
CertificationsEngineering Works including design
Various factors lead to potential water crisis in India which can be dealt with by providing solutions and opportunities
Strategic Recommendations
A B C D
• Point 1 • Point 1 • Point 1
• Point 2IONS
• Point 2
• Point 3
• Point 2
• Point 3
• Point 2
• Point 3
• Point 4
• Point 1
SOLU
TI
• Point 1• Point 1 • Point 1N
ITIES
• Point 2
• Point 3
• Point 4
• Point 1• Point 2• Point 3
• Point 1
• Point 2
• Point 3
• Point 1
OPP
ORT
UN
20WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
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21WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
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