Market Research Report : Biometrics Market in India 2012

Biometrics Market in India

March 2012

Executive Summary

Drivers:

Market

Drivers &

Challenges

� Indian Biometric market is valued at INR x1 bn, estimated CAGR of around x2% as in 20--

� The domestic market is projected to reach INR x3 bn by 20-- in terms of market size

�Global market size for biometrics was INR x4 bn in 20-- which is expected to grow further by x5% of the present market size in 20--

Challenges:

�Cost of Solution and Implementation

� Lack of Awareness and Enthusiasm

�Rapidly Increasing Security Concern

� Economic Advancement and Increased

Business Activities

�Government Initiatives and

2BIOMETRICS MARKET IN INDIA 2012.PPT

Recent Developments

Competition

�Development1

�Development2

�Development3

Major Players

4G Identity Solutions Pvt. Ltd. Bayometric Inc. eSSL India

NEC India Pvt. Ltd. Sagem Morpho Securities Pvt Ltd. Suprema Inc.

�Government Initiatives and

Implementations

� Technology Advancement and Availability

•Introduction

•Market Overview

•Opportunity in India

•Drivers & Challenges


•Drivers & Challenges

•Major Biometrics Players

•Recent Developments

•Strategic Recommendations

•Appendix

Introduction

Biometrics Overview

• Biometrics or biometric verification is any general or technological means by which a person can be uniquely identified

by evaluating one or more distinguishing biological traits in an individual

• Historians found examples of thumbprints on clay seals in ancient China as a means of unique identification or

ownership which confirms fingerprinting as the oldest form of biometric verification

• Biometric verification has advanced significantly over the years with modern technology and advent of computerized

databases leading to digitization of analog data with enhanced efficiency

• Although varied biometric methodology is applied in biometrics, the basic identification and verification process or

algorithm remains the same, with difference only in the detailed biometric process


d4d1 d2 d3

d5

d6

di1 di2

d7 d8

algorithm remains the same, with difference only in the detailed biometric process

Basic Biometric Identification and Verification Algorithm

Note1

A

B

Parent Industry Overview – Products and Services

Security Equipment and Services

A

Electronics Access Control

EquipmentsPrivate Security ServicesCCTV and other Equipment

Biometrics


C

D

E

F

B

C

D

C

D

E

Biometric Data Performance Across Technology

Biometric Technology Criterion1 Criterion2 Criterion3

Product1

Product2

Product3

Product4


Product5

Product6

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Criterion1

Criterion2

Criterion3

Biometric product penetration in India is and will be largely

driven my technology1

• Biometric market in India was valued at an estimated INR x1 bn in 20--, with a CAGR of around x2%

� It is expected that biometrics market will reach the market size of INR x3 bn by 20--

� Speciality1 market in India which was valued at INR x4 bn in 20--, is poised to reach more than x5 the market size to around INR x6 bn by

the end of 20--

• Consumers in India, in tune with global adoption trend, implement and use technology1 the most amongst all the product-catagory1

• Application of biometrics has spread to consumer devices and products, such as device1, device2, device3 amongst

others, to provide feature1 and benefit1

• Most of the biometric equipments are imported from countries such as country1, country2 and country3

Market Overview – India


• Most of the biometric equipments are imported from countries such as country1, country2 and country3

� Domestic manufacturers and vendors are looking to tap the market while some have introduced locally manufactured product2

Biometrics Market Size - India

INR bn

90

50

10

0

x%

20--

U

20--

T

20--

S

20--

R

20--

Q

20--

P

Cost-Accuracy Matrix – Major Biometric Solutions

High

Medium

Acc

ura

cy o

f B

iom

etr

ic S

olu

tio

n

Product 1

Product 2

Product 3

Product 4

Product 5


HighLow

Low

Medium

Cost of Biometrics Technology

Acc

ura

cy o

f B

iom

etr

ic S

olu

tio

n

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Product 5

Product 6

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Scope in India - Potential Verticals (-/-)

Vertical1

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Vertical2

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Vertical3

Drivers & Challenges – Summary

Drivers Challenges


Rapidly Increasing Security Concern

Economic Advancement and Increased

Business Activities

Government Initiatives and

Implementations

Technology Advancement and

Availability

Cost of Solution and Implementation

Lack of Awareness and Enthusiasm

Public: Domestic Company – Company1 (-/-)

Company Information Offices and Centres – India

Corporate Address

Adress line1

Adress line2

City. Country

Tel No. +91- --- - -----

Fax No. ++91- --- - -----

Website www.------.com

Year of Incorporation 19--

Ticker Symbol ------

Jaipur

Head Office


Key People

Products and Services

Stock Exchange Exchange1

Category Products/Services

Category1 Product1, Product2, Product3

Category2 Product1, Product2, Product3

Name Designation

Mr. X Designation1

Mr. Y Designation2

Mr. Z Designation3

Head Office

• The company incurred a net profit of INR a1 mn in FY 20--, as


Financial Snapshot Key Ratios

Financial Summary

Particulars y-o-y change

(2011-10)2011 2010 2009 2008

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)

Net Profit/LossTotal Income

0

50

100

150

0

2

4

6

8

Profit

INR mn

Revenue

INR mn

20--

c4

20--

c3

20--

c2

20--

c1


• The company incurred a net profit of INR a1 mn in FY 20--, as

compared to net profit of INR a2 mn in FY 20--

• The company reported total income of INR a3 mn in FY 20--,

registering an increase of a4 per cent over FY 20--

• The company earned an operating margin of a5 per cent in FY 20--,

an decrease of a6 percentage points over FY 20--

• The company reported debt to equity ratio of a7 in FY 20--, an

increase of a8 per cent over FY 20--

Key Financial Performance Indicators

Indicators Value (--/--/20--)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

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


Key Business Segments Key Geographic Segments

0%

50%

100%

20-- 20-- 20--20--

0%

50%

100%

20-- 20--20--20--

Product1 Product2 Product3 India Outside India


Key Information

Description Details

Overview

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Extended Product

Portfolio

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Recent Developments

Introduction of

Biometrics in

Education

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Introduction of

Biometrics in

Education

Introduction of

Biometrics in

X

Biometric ID Cards

for Public

Transportation




Biometric ID Cards

for Public

Transportation

Biometric X Cards

for Public Y


X Facility

and Y Cards

Enabled by

Biometrics




Biometrics

Application in

Customs




Biometrics

Application in Z

Strategic Recommendations (-/-)

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Strategic Recommendations1

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Strategic Recommendations2

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Appendix

Ratio Calculations

Operating Margin(Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin(Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

EBIT / (Total Assets – Current

Ratio Calculations

Current RatioCurrent Assets / Current

Liabilities

Cash Ratio

{(Cash & Bank Balance +

Marketable Securities) / Current

Liabilities)}

Debt to Equity Total Liabilities / Shareholders

Equity

Debt to Capital Ratio{Total Debt / (Shareholders

Equity + Total Debt)}


Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital(Net Income / Working Capital) *100

Return on Assets (Net Income / Total Assets)*100

Return on Fixed Assets (Net Income / Fixed Assets) *100

Operating Costs (% of Sales)(Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / Shareholders Equity

Thank you for the attentionThe Biometrics Market in India report is a part of Research on India’s Information Technology Series. For more detailed information or customized research requirements please contact:

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