Market Research Reprot :Chrome ore market in india 2013 sample

Chrome Ore Market IndiaChrome Ore Market – India

April 2013

Executive Summary

Market

Chrome ore finds extensive application in the production of ferro chrome which in turn is used in the production of steel India is the x largest producer of chrome ore and the y largest exporter of chrome ore in the world

D i h ll

Drivers & Challenges

Drivers•Robust Metallurgical Industry •Growing Refractory Industry •Well Established Foundry Industry

d h l

Challenges•Environmental Concerns

•Low Chrome Ore Resources

Challenges

Chrome Ore Export Regulation

•Expanding Chemical Sector •Healthy Economic Outlook

Industry Regulations

Specifications Of Exportable Grades Friable Chrome Ore

Specifications Of Chrome Concentrates

Specifications Of Lumpy Chrome Ore

Chromite – Trade Policy

Competition

Major Players

Player A Player B

Player C Player D

2

Player C Player D

Player E Player F

CHROME ORE MARKET IN INDIA 2013.PPT

•Macro Economic Indicators

• Introduction

• Market OverviewMarket Overview

• Chrome Ore Price Trend

• Chrome Ore Reserves

Ch O E l ti A ti iti• Chrome Ore Exploration Activities

• Chrome Ore Mine Allocation

• Export Import

• Chrome Ore Specifications

• Drivers and Challenges

• Industry RegulationsIndustry Regulations

• Recent Developments

• Competitive Landscape

St t i I iti ti

3

• Strategic Initiatives

• AppendixCHROME ORE MARKET IN INDIA 2013.PPT

Macro Economic Indicators (1/3)

INR tn

14y4z4y3

x2x1

GDP at Factor Cost: X

13

12

11

k4z3

k3

x2y2

z2

k2

x1y1

z1

k1

10Q‐Q‐Q‐Q ‐

20‐‐20‐‐20‐‐20‐‐

Inflation Rate: Y

0 8

1.0 x3x1

%

0.2

0.4

0.6

0.8

x5x4x2

4

0.020‐‐20‐‐20‐‐20‐‐20‐‐

BEARINGS MARKET IN INDIA 2013.PPT

India needs a progressive market development strategy and technological competitiveness to ensure market growth

Chrome Ore Production (1/2)

mn tonnes Z%

3

4

5x10

x9x8

x7x6x4

x3

x5x2

x1

0

1

2

020‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐20‐‐ 20‐‐20‐‐

• India is the x largest producer of chrome ore and the y largest exporter of chrome ore in the world

•Growing demand for chrome ore in the X coupled with shortages occurring in supplies of Country A and Country B ore due to increased consumption in Country C ferro alloy industry provides a major growth opportunity to the Indian

5

due to increased consumption in Country C ferro alloy industry provides a major growth opportunity to the Indian chrome ore market


Total chrome ore reserves in India is x million tonnes of which y million tonnes are under z category Chrome Ore Reserves / Resources ( tonnes )

Grades Reserves Remaining Resources Total Resources

Grade A ‐ ‐ ‐

Grade B ‐ ‐ ‐

Grade C ‐ ‐ ‐

Grade D ‐ ‐ ‐

G d EGrade E ‐ ‐ ‐

Grade F ‐ ‐ ‐

Grade G ‐ ‐ ‐

Grade H ‐ ‐ ‐Grade H

x1G d A

x5

x2

Grade E

Grade D

Grade B

Grade C

Grade A •Point 1•Point 2•Point 3•Point 4

6

x4x3

Grade E


Indian chrome ore exports have witnessed a steady decline over the last four years

‘000 tonnesINR bnx1 Volume

Value

Exports• Point 1• Point 2

Exports (Value and Volume)

5

10

500

1,000

1,500

2,000

x3x4

y4y3

x2

y2

x1

y1

• Point 3

0 020‐‐ 20‐‐

y

20‐‐20‐‐

Segmentation – Value (20‐‐) Segmentation – Volume (20‐‐)

x3

x1x2

Country B

Country C

Country Ax3x1 Country A

Country B

Country C

Country D

7

x4 x2


Drivers & Challenges – Summary

Drivers

Robust Metallurgical Industry

Growing Refractory Industry

Challenges

Environmental Concerns

Well Established Foundry Industry

Expanding Chemical Sector

Low Chrome Ore Resources

Healthy Economic Outlook

8CHROME ORE MARKET IN INDIA 2013.PPT

Growing metallurgical industry will lead to higher demand for ferro alloys..

Robust Metallurgical Industry (1/3) Impact

• Finding 1

• Finding 2

• Finding 3

• Finding 4

Historical Demand

Ferrro‐chrome Demand

Forecasted Demand

1.0

1.2

mn tonnesZ%

x4x3

x12.0

1.73

mn tonnes

1.57Z%1 41

BA

0 2

0.4

0.6

0.8

x3x2

0.5

1.0

1.5

53%

53%

47%

53%53%53%

47%47%

1.16 1.281.41

1.06

47%

53%

9

0.0

0.2

20‐‐20‐‐20‐‐20‐‐0.0

20‐‐

47%

20‐‐

47%

20‐‐20‐‐

47%

20‐‐

47%

20‐‐

47% 47%


SAMPLE Industry Regulations – Summary

Chrome Ore Export Regulation

Specifications Of Exportable Grades Friable Chrome Ore

` Specifications Of Chrome ConcentratesKey RegulationsRegulations

Specifications Of Lumpy Chrome Ore

Chromite – Trade Policy

10CHROME ORE MARKET IN INDIA 2013.PPT

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 ‐ ‐ ‐ ‐

11BEARINGS MARKET IN INDIA 2013.PPT

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



12

, p , pPerson 4 Designation


i i l S h K i


Financial Snapshot Key Ratios

Profit / Loss

Total Income

10,000 600

ProfitINR mn

Total IncomeINR mn

y3y4

Particulars y‐o‐y change (2012‐11)

2012 2011 2010 2009

Profitability RatiosOperating Margin 2.39 15.82% 13.43% 7.52% 18.81%

0

5,000

0

200

400x4

20‐‐

y3

20‐‐

x3

20‐‐ 20‐‐

y1

x1

y2

x2

Net Margin 1.19 5.35% 4.15% 2.80% 0.14%

Profit Before Tax Margin 1.89 8.19% 6.31% 4.66% 1.09%

Return on Equity 0.60 3.36% 2.76% 1.24% 0.36%

Return on Capital Employed 1.12 9.35% 8.23% 3.03% 34.42%

Return on Working Capital ‐4.90 ‐78.05% ‐73.15% ‐61.05% ‐300.99%

Return on Assets 1.04 7.17% 6.12% 2.41% 17.34%

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 x mn in FY 20‐‐registering an increase of x% over FY 20

Return on Fixed Assets 1.10 8.91% 7.81% 2.90% 31.39%

Cost RatiosOperating costs (% of Sales) ‐2.41 84.00% 86.42% 91.91% 81.00%

Administration costs (% of Sales)

2.23 9.61% 7.38% 8.51% 9.82%

Interest costs (% of Sales) 0.21 6.90% 6.69% 9.01% 6.41%registering an increase of x% over FY 20‐‐

• The company earned an operating margin of x% in FY 20‐‐, a decrease of y percentage points over FY 20‐‐

• The company reported debt to equity ratio of x in FY 20‐‐, an increase of y% over FY 20‐‐

Interest costs (% of Sales) 0.21 6.90% 6.69% 9.01% 6.41%

Liquidity RatiosCurrent Ratio ‐9.82% 0.61 0.67 0.81 0.88

Cash Ratio ‐13.72% 0.07 0.09 0.07 0.06

Leverage RatiosDebt to Equity Ratio ‐32.40% 0.13 0.20 0.15 0.76

Financial Summary

Indicators Value Market Capitalization (INR) ‐

Total Enterprise Value (INR) ‐

Debt to Capital Ratio ‐28.61% 0.12 0.16 0.13 0.43

Interest Coverage Ratio 14.21% 2.32 2.03 0.90 2.97

Efficiency RatiosFixed Asset Turnover ‐3.11% 0.56 0.57 0.36 1.65

Asset Turnover ‐0.63% 0.45 0.45 0.30 0.91

Current Asset Turnover 20.77% 3.16 2.62 1.81 2.08

13

EPS (INR) ‐PE Ratio (Absolute) ‐


Cu e t sset u o eWorking Capital Turnover ‐9.39% ‐4.88 ‐5.38 ‐7.55 ‐15.84

Capital Employed Turnover ‐0.20% 0.55 0.55 0.36 1.46

Improved Decline


Key Business Segments Key Geographic Segments

100%

A

100%

A B

0%

50%

100%

100%

0%

50%

100%

y4y3

x1x3

y1

x2

y2

x4A is the only business segment of the company

Business Highlights

0%20‐‐

0%20‐‐20‐‐20‐‐20‐‐

Description News

Overview

• Company A is a part of the B Companies and is one of the leading producers and suppliers of x

• Company has been allotted a captive chrome ore mine in Place A in J in X district of State BB

• It has x furnaces with total capacity of y MVA to produce z MT bulk A per annum

Beneficiation Plant• X plant of the company was commissioned in 20‐‐ with a capacity of x mt/hr• Plant has y from Company A and y from Company B and the z has been done by Company C with Z system

14

C t syste


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