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Sanitaryware Market IndiaSanitaryware Market – India
October 2013
Executive Summary
Market Indian sanitaryware market is expected to reach INR ‘h’ mn in 20‐‐e, growing at a CAGR of ‘x’%, from INR ‘a’ mn in 20‐‐ Unorganized sector accounts for ~’z’% of the sanitaryware market in terms of volume
Drivers & Challenges
Drivers:• High Income and Changing Lifestyle • Real Estate Boom • Replacement Demand
Challenges:• Rise in Power and Fuel Costs• Large Unorganized Sector• Seasonality
• Untapped Market Potential • Increasing Awareness Among Consumers
Government Total Sanitation Campaign & 12th Five Year Plan (2012‐17) Public Toilet Schemes
Trends Premium Sanitaryware Segment Increasing Foreign Presence
Initiatives Housing Policies 100% FDI in Real Estate
Competition
Trends Emergence of Concept Washrooms Green Initiatives
Major Brands
2SANITARYWARE MARKET IN INDIA 2013.PPT
CompetitionCompany 1 Company 2 Company 3 Company 4
•Economic Indicators•Introduction•Market Overview•Sanitation Facilities•Export‐Import•Drivers & Challenges•Government Initiatives•Trends•Competitive Landscape•Strategic Recommendations
3
•AppendixSANITARYWARE MARKET IN INDIA 2013.PPT
Economic Indicators (1/3)
a2a1
INR tn
14b4c4b3
GDP at Factor Cost: Quarterly
d3
a2b2c2
d2
a1b1
c1
d1
13
12
11
d4c3
Q2Q110
Q4Q32012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0.8
1.0%
ca
0.2
0.4
0.6
0.8
edb
4
0.0Mar 2013 ‐ Apr 2013Feb 2013 ‐Mar 2013Jan 2013 ‐ Feb 2013Dec 2012 ‐ Jan 2013Nov 2012 ‐ Dec 2012
SANITARYWARE MARKET IN INDIA 2013.PPT
Sanitaryware refers to the various plumbing fixtures such as sinks or…
Sanitaryware Products (1/2)
Sinks
Types Materials Used
Type 1 sinks, Type 2 sinks, Type 3 sinks, Type 4 sinks, Type 5 sinks, sinks fitted on Type A / Type B / Type C
cabinets
Type 1, Type 2, Type 3, Type 4, Type 5, Type 6,Type 7, Type 8, Type 9, Type 10
Sinks can be placed on countertops which are made of marble or onyx, and have rugged water proof surfaces Moreover, sinks are in trend as they help to improve a bathroom's efficiency
Designer Ware Sinks
Handcrafted sinks in glass, metal and
ceramic
Shapes
5
Shape 1 Shape 2 Shape 3
SANITARYWARE MARKET IN INDIA 2013.PPT
Government target to provide adequate sanitation within next 5 years will ensure sustained growth in the market
Sanitaryware Market – Overview
• Indian sanitaryware market accounts for ‘y’% of the global sanitaryware production and ranks ‘n’th in terms of volume within the Region A
• Improved living standards and increasing awareness level among the consumers have resulted in rapid growth of the sanitaryware market
INR mnMarket Size and Growth (Value‐Wise)
30,000
40,000
50,000
fd
c
x%
hg
0
10,000
20,000
cb
a
6
020‐‐e20‐‐20‐‐20‐‐ 20‐‐e20‐‐e20‐‐e
SANITARYWARE MARKET IN INDIA 2013.PPT
As of 2011, more than 50% of the total households in nine states were devoid of basic latrine facilitiesBasic Amenities Scenario – Latrine Facility (2011) – (1/3)
Percentage of households having
State / Union Territory Total Households(‘000)
Water Closet (%)
Pit Latrines (%)
Other Latrines (%)
No Latrine(%)
State 1
State 2State 2
State 3
State 4
State 5
State 6
State 7
State 8
State 9
State 10
State 11
7SANITARYWARE MARKET IN INDIA 2013.PPT
Top 5 states in India in terms of minimum availability of latrine facilities in 2011
India has been witnessing a trade deficit over the past two years…
Exports • Indian sanitaryware exports declined by a CAGR of ‘z’% in value terms between FY 20‐‐ and FY 20‐‐
Exports (Value and Volume)
INR mn ‘000 KgVolumeValue
• This could be associated with the high value of export in FY 20‐‐ as in the following 3 years the value of exports has been around INR ~’q’ mn
•While Country 1 has been the largest export market 100
200
300
500
1,000
1,500‐z%
INR mn 000 Kg
p2
p1l1
n2
n1
m2
m1
l2
for sanitaryware in terms of value in FY 20‐‐, the largest export market for sanitaryware in terms of volume for the same period was Country 3
Region‐Wise Exports – Value Region‐Wise Exports – Volume
0 020‐‐20‐‐20‐‐20‐‐
(20‐‐) (20‐‐)
i1% a1%
Country 3Country 2Country 1
a2%i2% Country 2Country 1
Country 3
h1%g1%
f1%b1%
Country 7Country 6Country 5Country 4Country 3
b2%h2%
g2%f2%
Country 5
Country 1Country 4
Country 9Country 8
8
Note: HS Code 74182010 – Sanitaryware
SANITARYWARE MARKET IN INDIA 2013.PPT
d1% c1% OthersCountry 7
c2%d2%f2%
OthersCountry 9
Drivers & Challenges – Summary
Drivers ChallengesDrivers
High Income and Changing Lifestyle
Real Estate Boom
g
Rise in Power and Fuel Costs
Large Unorganized Sector
Replacement Demand
Untapped Market Potential
Increasing Awareness Among
Seasonality
Increasing Awareness Among Consumers
9SANITARYWARE MARKET IN INDIA 2013.PPT
Government Initiatives – Summary
Impact
Total Sanitation Campaign &p g12th Five Year Plan (2012‐17)
Public Toilet Schemes
Housing Policies (Urban)
100% FDI in Real Estate
10
100% FDI in Real Estate
SANITARYWARE MARKET IN INDIA 2013.PPT
Trends – Summary
Green Initiatives Premium Sanitaryware Segment
Key Trends
Emergence of Concept Washrooms
Increasing Foreign Presence
11SANITARYWARE MARKET IN INDIA 2013.PPT
Competitive Benchmarking – Public Companies (1/5)
Key Ratios of Major Public Companies – Operational Basis (FY 2013) (1/3)
50 a1%
a2
Net MarginOperating MarginGross Margin
10
20
30
4050 a1
3b3
a3
c2b2
a2
c1b1
010
Company 3
c3
Company 2Company 1
c1
• Company 2 recorded gross margin of ‘a2’%, higher than that of both Company 1 and Company 3 which recorded gross p y g g , g p y p y gmargin of ‘a1’% and ‘a3’% respectively
• Company 1 recorded operating margin of ‘b1’% which was lower than that of Company 2 which recorded operating margin of ‘b2’%, but higher than that of Company 3 which recorded operating margin of ‘b3’%
• Company 2 recorded a higher net margin of ‘c2’% compared to Company 1 and Company 3 which recorded a net margin of ‘c1’% and ‘c3’% respectively
12
margin of c1 % and c3 % respectively
SANITARYWARE MARKET IN INDIA 2013.PPT
Competition Curve – Public Companies
5 000
10,000
15,000
INR mn
c1
b
a1
FY 20‐‐
Total Income Net Profit/Loss
0
5,000
Company 3
c2
Company 2
b2b1
Company 1
a2
FY 20‐‐5,000
10,000
15,000
INR mn
n1
m1l2
l1 Net Profit/LossTotal Income
0
5,000
Company 3
n2
Company 2
m2
Company 1
l2
INR mn
FY 20‐‐ 10,000
20,000
r2
r1
q2q1
p1
p2
Total Income Net Profit/Loss
13
0r2
Company 3
q2
Company 1
p
Company 2
SANITARYWARE MARKET IN INDIA 2013.PPT
Public: Domestic Company – Company 1(1/5)Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Gurgaon
Ticker Symbol
Stock Exchange Head OfficeProducts
Key People
N D i ti
Sanitaryware Products
Name Designation
Person 1 Executive & Non‐Independent Chairman
Person 2 Joint MD
Person 3 Deputy General Manager of Finance
14
Person 4 Assistant VP
SANITARYWARE MARKET IN INDIA 2013.PPT
K ii i l S h
Public: Domestic Company – Company 1(2/5)
Key RatiosNet Profit / LossTotal Income
15 000
20,0008001,000
INR mn INR mn
d2c2
b2
Particulars y‐o‐y change (2013‐12) 2013 2012 2011 2010
Profitability RatiosOperating Margin
Financial Snapshot
0
5,000
10,000
15,000
0200400600
20‐‐
d1
20‐‐
c1
20‐‐
b1
20‐‐
a2
a1
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
Financial Summary • Company earned a net profit of INR XX mn in FY 20XX, as compared to net profit of INR Y mn in FY 20YY
• It reported total Income of INR XX mn in FY 20XX, registering an increase of X per cent over FY 20YY
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)of X per cent over FY 20YY
• It earned an operating margin of X.X per cent in FY 20XX an increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX, an increase of X.X per cent over FY 20YY
Interest costs (% of Sales)Liquidity RatiosCurrent RatioCash RatioLeverage RatiosDebt to Equity Ratio
Key Financial Performance IndicatorsIndicators Value (dd/mm/yyyy)
Market Capitalization (INR mn)Total Enterprise Value (INR mn)
( )
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
15
EPS (INR)PE Ratio (Abs)
Current Asset TurnoverWorking Capital TurnoverCapital Employed Turnover
Improved Decline
SANITARYWARE MARKET IN INDIA 2013.PPT
Public: Domestic Company – Company 1(3/5)Key Business Segments Key Geographic Segments
80%
100%
1%b1%1% d1%
Segment 1 Segment 3Segment 2
100%
India
India is the only geographic
0%
20%40%60%80%
c3%
c2%
c1%
b3%
b2%
b1%
a3%
a2%
a1%
d3%
d2%
d1% 100%
50%
0%
100%
India is the only geographic segment in which the company has been operating for the last
four years
Business Highlights (1/2)
0%
20‐‐20‐‐20‐‐
a3%
20‐‐
0%20‐‐
Description News
Overview
• It is a flagship company of the ‘A’ Group and is the largest Indian manufacturer of sanitaryware products with a dominant market share of ‘x’% of the organized sector
• Company has achieved ‘y’% level of capacity utilization in sanitaryware• Company offers its sanitaryware under the brands: Brand 1, Brand 2, Brand 3 and Brand 4p y y , , Besides, it has also launched the world’s premium brands Brand 5 and Brand 6 in the Indian market
Network • Company has a wide spread network of more than 15,000 retailers and 2,000 + dealers• There are 18 service centers across India and more than 458+ shop‐in‐shop
Other Products • Faucets, Wellness Products, Kitchen appliances, Tiles, Container Glass and PET Bottles and Extractor Fans
16
Extractor FansRealizations • Achieved 8.26% higher average realizations per tonne in the sanitaryware segment
SANITARYWARE MARKET IN INDIA 2013.PPT
Public: Domestic Company – Company 1(4/5)Business Highlights (2/2)
Description News
• Sanitaryware Products:h ll d f ll
Installed Capacity City 1 with installed capacity of 1.5 mn pieces annually City 2 with installed capacity of 2 mn pieces annually
• Faucets: City 3 with installed capacity of 0.5 mn pieces annually
• Company has achieved ‘z’% increment in sanitaryware capacity along with increasing the
Capacity Expansion
p y % y p y g gfaucets capacity by 10 times
• Company has successfully completed the expansion of 0.7 mn pieces of sanitaryware at the plant in City 2 by Sep 2011, taking its capacity to 2 mn pieces within a budgeted cost of INR 600 mn
Product Launches
•During 2011‐12, company has launched 25 new sanitaryware products under Brand 1 and two series of faucets under the Brand 2
• Company has forayed into the ultra‐premium market segment by launching 8 new series of high‐end luxury sanitaryware and faucets under the Brand 5, which is a part of the brand portfolio of their Region ‘A’ based wholly owned subsidiarybrand portfolio of their Region A based wholly owned subsidiary
Expansion Plans• Company has plans of greenfield expansion of 1.2 mn pieces of sanitaryware and 2.5 mn pieces of faucets in State 1 and State 2, respectively In State 1, company plans to invest INR 1,700 mn and slowly scale up investments up to INR 5,000 mn
17SANITARYWARE MARKET IN INDIA 2013.PPT
Public: Domestic Company – Company 1 – SWOT Analysis(5/5)
SAMPLESAMPLE WS
TO
18SANITARYWARE MARKET IN INDIA 2013.PPT
Thank you for the attentionSanitaryware Market – India report is part of Netscribes’ Manufacturing & Construction Industry Series.For any queries or customized research requirements, contact us at:Ph 91 22 4098 7600
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19
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, 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.
SANITARYWARE MARKET IN INDIA 2013.PPT