Market Research Report : Storage market in India 2012

Storage Market – India

June 2012

2STORAGE MARKET IN INDIA 2012.PPT

SAMPLE

Executive Summary

Market

Storage Architecture

Types of Storage

Competition

Direct Attached Storage

Network Attached Storage

Storage Area Network

Tape drives

The storage market in India was valued at INR xx bn in 2011 and is expected to attain a CAGR of xyz% to reach around INR yy bn in 2016

SMB segment within the market hovered at around INR 6.5 bn in 20xx, wherein it is anticipated to reach a healthy CAGR of xyz% to reach INR zz bn by 2016

Players operating in the market are mostly foreign vendors and a stiff competition prevails amongst them

Key Storage Vendors

EMC Dell

SanDisk Transcend

Storage as a Service Storage Virtualization Storage ConsolidationObject Based Storage IP Based Storage


•Market Introduction

•Market Overview

•Storage Architecture Technology

•Types of Storage

Storage as a Service

Storage Virtualization

Storage Consolidation

Object Based Storage

IP Based Storage

•Market Influencers

•Channel Landscape

•Competition

•Strategic Recommendation

•Appendix


SAMPLE

Rapid growth across key industry verticals primarily push the Indian storage sector dynamically

•Rapid growth in data and content generation due to the immense trading and business activities across major industries is shaping up the demand curve within the Indian storage market

• Increased activity amongst key industry verticals such as BFSI, Manufacturing, Telecom, Government, IT/ITeS and Media and Entertainment boost the market by a large extent The colossal presence of around 50mn SMBs in India further fuels growth in the storage market

Competition in the market can be characterized as stiff and intense, wherein the vendors operate with the aide of channel partners Vendor’s primarily utilize channel partner’s wide and strong market reach so as to enhance its business operations and generate large revenue share

Storage Market India ‐ Overview

Storage Market – Size & Growth

•The global slowdown took a toll on the market and ironically showed signs of becoming a mainstream market and hence could not avert the impact of such external forces

• Further, the recent Thai floods had also imparted a significant impact on the market, wherein the closure of hard disk manufacturing plants resulted in a shortage of supply and price hike

0

10

20

30

40

INR bn

xyz

2016e2015e2014e2013e2012e2011


SAMPLE Storage Market in India – Split (2011)

2011 xyz

Storage Market – India (INR bn)

15.9%

20.7%

24.4%

39.0%

dcba

77.3%

22.7%

fe

22.0%

48.0%

30.0%

cba

Market Split – Form Factor Market Split – Business Segment


SAMPLE Storage Market India – Trends

Market Scenario – Over Last Two Years

•DAS was the preferred storage architecture for organizations

•Price sensitivity prevailed in the market

•Thai floods and rupee depreciation hampered growth in the market

• Small and Medium Businesses preferred DAS over SAN and NAS

• Introduction of 3PAR solutions in India

• Industries such as BFSI, telecom and IT/ITeS were the prime consumers in the market Additionally, Media & Entertainment, Research, government and Manufacturing were also amongst the top consumers in the market

Price decline and advent of technology are

the prime reasons

driving change in the market

Current Trends Witnessed

• Increased adoption of virtualization and cloud amongst companies

•Primarily, organizations implementing virtualization will opt for storage as a service

•Off late, organizations are focusing more on product quality rather than cost factors

• SMBs have exhibited a trend of opting NAS or IP‐SAN over DAS

•Post economic slowdown, the mid range products saw the highest uptake

• State‐of‐the‐art technologies such as FCoE and automated storage tiering is gaining a significant traction in the market

The Change


SAMPLE Major Storage Architectures (1/4)

•DAS are devices that connect directly with the computers

• It primarily attaches with the aide of interfaces such as USB, firewalls or SCSI

• Is mainly optimized to provide immediate backup for a single and stand‐alone computer only

• It happens to be the cheapest form of storage options available, in terms of cost per amount of memory space

•The prime advantage happens to be the easy and quick installation

•However, key demerits for DAS include lack of redundancy, complex file sharing set‐up and non scalability

DAS – (Direct Attached Storage)

DAS Features

Low Moderate High

XYZ

AAA

BBB

xyz aaa bbb

Usability

Speed

abc & defGHI

ABC

DEf


SAMPLE Direct Attached Storage ‐ Architecture

Ethernet Switch

Storage Boxes

Client Layers

Local Area Network

Storage Layer


SAMPLE Storage Device Architecture Snapshot

Advantages

Sl. No. Direct Area Storage Network Area Storage Storage Area Network

1

2

3

Disadvantages


1

2

3

Features


1

2

3

4


SAMPLE Offering attractive cloud based services to customers has become a prominent trend amongst storage vendors

*The list of free cloud offerings mentioned is not exhaustive


SAMPLE Vendor Selection Criteria – Channel Partners

•xxx

• xxx

• xxxCriteria 3

Criteria 2

Criteria 1


SAMPLE Major Public Companies ‐ Summary

Source: Annual Reports, Databases Note: All figures are in INR mn and are based on the latest financials available

1,219,543.1604,154.9

524,069.4429,416.9416,670.3

432,783.065,536.4

‐300,000

0

300,000

600,000

‐400,000 ‐200,000 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

Net Profit/Loss

Total income

2,442,099.3

Size of the Bubble represents Market Capitalization in INR mn

e hgfdcba


SAMPLE Public: Domestic Company – Player A (1/3)

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

Category Products/Services

Name Designation

Note: The list of products and services is not exhaustive

New Delhi

Head Office


SAMPLE Public: Domestic Company – Player A (2/3)

Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR 138.440 bn in FY 2011, as compared to net profit of INR 87.857 bn in FY 2010

• The company reported total income of INR 1072.2 bn in FY 2011, as compared to INR 765.6 bn in FY 2010

• The company earned an operating margin of 17.85 per cent in FY 2011, an increase of 1.72 percentage points over FY 2010

• The company reported debt to equity ratio of 0.72 in FY 2011, a decrease of 3.22 per cent over FY 2010

Key Financial Performance Indicators

Indicators Value (dd/mm/2012)Market Capitalization (INR mn) 2442099.3Total Enterprise Value (INR mn) 2262188EPS (INR) 1.16PE Ratio (Absolute) 19.75

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin 1.72 17.85% 16.12% 11.13% 12.55%

Net Margin 1.44 12.91% 11.47% 7.90% 8.73%

Profit Before Tax Margin 0.89 16.08% 15.19% 9.69% 10.58%

Return on Equity 2.25 13.09% 10.84% 6.98% 9.66%

Return on Capital Employed 2.19 15.09% 12.90% 7.29% 10.17%

Return on Working Capital ‐269.73 216.24% 485.97% 20.81% 24.23%

Return on Assets 1.22 7.61% 6.39% 4.18% 5.53%

Return on Fixed Assets 14.18 92.08% 77.90% 50.43% 59.37%

Cost RatiosOperating costs (% of Sales) ‐1.41 71.23% 72.64% 77.14% 75.67%

Administration costs (% of Sales)

0.79 32.38% 31.59% 32.36% 30.94%

Interest costs (% of Sales) ‐0.20 0.85% 1.05% 1.30% 1.19%

Liquidity RatiosCurrent Ratio 7.00% 1.12 1.04 2.05 2.04

Cash Ratio 3.45% 1.06 1.02 1.82 1.76

Leverage RatiosDebt to Equity Ratio 3.22% 0.72 0.70 0.67 0.75

Debt to Capital Ratio 554.42% 0.08 0.01 0.16 0.18

Interest Coverage Ratio 36.32% 21.15 15.52 8.65 10.76

Efficiency RatiosFixed Asset Turnover 4.94% 7.06 6.73 6.31 6.69

Asset Turnover 5.80% 0.58 0.55 0.52 0.62

Current Asset Turnover ‐0.68% 1.73 1.74 1.33 1.39

Working Capital Turnover ‐60.50% 16.58 41.98 2.60 2.73

Capital Employed Turnover 7.20% 1.00 0.94 0.87 1.09

Improved Decline

Net Profit/LossTotal Income

1072278.3

658658.3735146.9

0

500000

1000000

1500000

0

50000

100000

150000INR mn INR mn

20112010

765674.6

20092008


SAMPLE Public: Domestic Company – Players A (3/3)

Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview • XXX

Business Model • XXX

4%4%4%4%4%4%5%5%

0%

50%

100%

74%

2010

1,061,703

19%

2011

758,960

17%

75%

2009

650,942

14%

76%

2008

723,138

13%

78%

A DBC

31% 31% 29% 28%

6%6%5%5%0%

50%

100%

53%

2008

11%

54% 54%

2009

11%

2011

13%

53%

2010

12%

Note: Business Segments and Geographic Segments are based on total revenues

C DBA


SAMPLE

5,875,457

43,056,862

5,260,690

‐1,000,000

‐500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

‐5,000,000 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000

3,062

11,825

Net Profit/Loss

Total Income

Major Private Companies ‐ Summary

Note: All figures are in INR mn and are based on the latest financials available

Size of the Bubble represents Total Assets in INR mn

EDCBA


SAMPLE Private: Foreign Company – Player B. (1/3)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Category Products/Services

Name Designation

Note: The list of products and services is not exhaustive

Head Office

Bangalore



Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR 1309 mn in FY 2010, as compared to net profit of INR 1371 mn in FY 2009

• The company reported total income of INR 20880.9 mn in FY 2010, as compared to INR 20821.8 mn in FY 2009

• The company earned an operating margin of 6.47 per cent in FY 2010 a decrease of 5.76 percentage points over FY 2009

• The company reported debt to equity ratio of 0.03 in FY 2010, an increase of 13.25 per cent over FY 2009

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability RatiosOperating Margin ‐5.76 6.47% 12.23% 11.66% 18.53%

Net Margin ‐0.32 6.27% 6.59% 6.25% 7.77%

Profit Before Tax Margin ‐5.80 6.27% 12.07% 11.51% 18.39%

Return on Equity ‐1.35 11.37% 12.73% 9.61% 7.58%

Return on Capital Employed ‐6.85 50.11% 56.96% 28.84% 23.46%

Return on Working Capital 9.74 34.31% 24.57% 15.31% 8.96%

Return on Assets 0.34 11.07% 10.73% 8.22% 6.56%

Return on Fixed Assets ‐5.08 20.95% 26.02% 20.62% 47.94%

Cost RatiosOperating costs (% of Sales) 5.76 93.53% 87.77% 88.34% 81.47%

Administration costs (% of Sales)

0.00 0.00% 0.00% 0.00% 0.00%

Interest costs (% of Sales) 0.04 0.20% 0.16% 0.15% 0.14%

Liquidity RatiosCurrent Ratio ‐15.18% 1.42 1.67 2.15 3.20

Cash Ratio 29.15% 0.04 0.03 0.02 0.02

Leverage RatiosDebt to Equity Ratio 13.25% 0.03 0.02 0.02 0.02

Debt to Capital Ratio 12.90% 0.03 0.02 0.02 0.02

Interest Coverage Ratio ‐57.69% 32.24 76.21 78.42 134.27

Efficiency RatiosFixed Asset Turnover ‐15.45% 3.34 3.95 3.30 6.17

Asset Turnover 8.37% 1.77 1.63 1.32 0.84

Current Asset Turnover 7.59% 1.61 1.50 1.31 0.79

Working Capital Turnover 46.66% 5.47 3.73 2.45 1.15

Capital Employed Turnover ‐6.13% 1.81 1.93 1.54 0.98

Improved Decline

Net Profit/LossTotal Income

20880.920821.8

0

5000

10000

15000

20000

25000

0

500

1000

1500

201020092008

14462.1

2007

8316.8

INR mn INR mn



Business Highlights

Description News

Overview • xxx

Clientele • xxx


SAMPLE Strategic Recommendations (1/x)

•xyz

Low Priority High Priority

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Opportunity Areas


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