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Abstract:
Netscribes latest market research report titled Machine Tools Market in India 2014 describes the dynamics of machine tools supply and demand in this country. In 2013, domestic production accounted for only one-third of the overall domestic consumption of machine tools in India. Demand is expected to grow steadily over the next few years and Indian players wish to increase market share of domestic production considerably during the same time period. With respect to import and export of machine tools, India plays a prominent role with some of its key partner nations being China, Japan and Germany.
Within the machine tools industry, there are around 1000 units involved in the production of machine tools, accessories and subsystems. Out of these, the very large companies are responsible for more than half the industry turnover and the rest can be attributed to SMEs. Thus, while the demand-supply gap in the industry creates an opportunity for new entrants, the need for continuous technology upgradation and rise in production costs together pose a challenge for the smaller players. However, there are government initiatives in this regard to support the SMEs, schemes such as Credit Linked Capital Subsidy Scheme for Technology Upgradation and National Manufacturing Competitiveness Programme. The major players have increasingly moved towards sophisticated machines, but they need to continue investing in R&D and technology transfer partnerships with other nations to remain competitive in this dynamic industry.
Coverage
Overview of the machine tools market in India and forecasted market size data over 2014 to 2020
Compilation of import and export data for different segments of machine tools
Qualitative analysis of the major drivers and challenges affecting the market
Detailed study of government initiatives and major trends in the industry
Analysis of the competitive landscape and detailed profiles of major public and private players
2. 2
SAMPLEExecutive Summary
Market
Drivers &
Challenges
Trends
Competition
Robust growth of the end user industries is expected to accelerate the demand for motors in
the Indian market
Indian AC Motors market was valued at INR xx bn in 20-- and is estimated to reach INR yy bn
by 20--
Energy Efficient Motors
Customer Services
Drivers
Rise in Infrastructural Investments
Industrial Growth
Developments in the Power Sector
Growth in Consumer Durables
Agricultural Pumps Demand
Robust Automotive Market
Healthy Economic Outlook
Challenges
Volatile Raw Materials Prices
Lack of Capacity Utilization
Consumer Outlook
Major Players
Player 1 Player 2
Player 3 Player 4
Player 5 Player 6
MOTORSMARKET IN INDIA 2014.PPT
5. 5
AC motors experience greater preference for a wide variety
of applications in industrial to domestic sectors
AC Motors
•This segment comprises Low Tension (LT) motors and High Tension (HT) motors
•It offers advantages such as simple design, reliable operations and easily found replacements
•AC LT motors rank among the lowest priced motors for applications that need more than ½ HP of power owing to the
simple design of the motor
0
5,000
10,000
15,000
20,000
25,000
f1
20--e
E
e2
e1
20--e
D
d2
d1
20--e
C
c2
c1
20--e
B
b2
b1
20--
A
a2
a1
‘000 KW
20--e
F
f2
YYXX
Note: Motors industry is characterizedbythe presence ofa diverse product range and is a highly fragmentedmarket owing to which an exact estimate of the
market segmentsin termsof value has not beencovered
MOTORSMARKET IN INDIA 2014.PPT
6. 6
AC Motors – Segment Overview
AC Motors
XX
MOTORSMARKET IN INDIA 2014.PPT
60
40
20
0
D
d2
d1
2015e
C
c2
c1
2014e
B
b2
b1
2013
A
a2
a1
bn
X
2018e
F
f2
f1
2017e
E
e2
e1
2016e
YYXX
YY
10
5
0
bn
Y
2018e
a6
2017e
a5
2016e
a4
2015e
a3
2014e
a2
2013
a1
40
30
20
10
0
bn
Z
2018e
b6
2017e
b5
2016e
b4
2015e
b3
2014e
b2
2013
b1
7. 7
SAMPLEMotors Market – Segments (2/3)
dc
b
a
dcba
Motors Market – Demand Share (2/3)
a3
a2
a1
a4
a3a2a1 a4
LT Squirrel Cage Motors (2013) LT Slip Ring Motors (2013)
•Total volume of LT Squirrel Cage Motors in the
market was around aa units in 20--
•LT Squirrel cage motors of frame size xx accounted
for the highest share of the market in 20--
•Total volume of LT Slip Ring Motors in the market
was around bb units in 20--
•LT Slip Ring motors of frame size yy accounted for
the highest share of the market in 20--
MOTORSMARKET IN INDIA 2014.PPT
8. 8
New demand dominates the overall procurement
demand for motors across the domestic market
Motors Market – Demand Share (2013)
Regional Ranking - Demand Wise (2013)
b
a
ba
B%
a%
b
a
South
& East
West
North
MOTORSMARKET IN INDIA 2014.PPT
Demarcations on the map are indicative
9. 9
Supply Chain Analysis (1/2)
•XXX
•YYY
•ZZZ
Purchase Decision Influencers
XX YY ZZ AA
b
a
ba
Motors Market – Share of Sub-Contracting (2013)
MOTORSMARKET IN INDIA 2014.PPT
11. 11
SAMPLEExports and Imports (Country-wise) (HS Code – 850151)
Exports (Value) Exports (Volume)
Imports (Value) Imports (Volume)
b
a
de
f
c
b
c
d
e
f
a
x4
x5
x6x1
x3
x2
x2
x1
x3
x5
x6
x4
a4
a2
a1
a3
a6
a5
a5
a6
a1
a3
a2
a4
n
y
m
o
z
x
n
z
y
o
x
m
MOTORSMARKET IN INDIA 2014.PPT
12. 12
SAMPLE
Rise in Infrastructural Investments
Growing investments for strengthening the infrastructure
across India will enhance the demand for motors
• AA
• BB
• CC
• DD
Impact
Infrastructural Investments (12th Five Year Plan)
Developmentin infrastructure
sectorswill generatedemand
for a wide variety of products
such as cranes, fans, cooling
equipment,appliances,
pumps, conveyor equipment
etc. for their processes which,
in turn, will drive demand for
motors0
2,000
4,000
6,000
8,000
10,000
12,000
X
20-----
x6
20-----
x5
20-----
x4
20-----
x3
20-----
x2
20-----
x1
In bn
MOTORSMARKET IN INDIA 2014.PPT
13. 13
Industrial Growth (4/5)
Demand for motors will expand with the growth of the
machine tools sectors in India
Machine Tools Market Overview
• AA
• BB
• CC
• DD
• EE
-50
0
50
100
D
bn
x4
x1
B
x3
A C
x2
A
E
-50
0
50
100
mZ
m1 m3
m4
bn
Y
m2
X n
B20-- 20--
XXXXXX
Note: XXX
MOTORSMARKET IN INDIA 2014.PPT
Impact
14. 14
SAMPLE
…order to promote the adoption of energy efficient motors
and reduce energy related costs
Note: Years denote the average lifetime of a particular motor
Focus on Energy Efficiency (2/2)
Sector
Conservation
Potential
Energy Handled
by Motors
Industrial Sector A X
Agriculture
Sector
B Y
Domestic Sector C Z
Commercial
Sector
D M
0
10
20
30
40
50
60
70
80
90
100
%
kW
z
z3
z1 z2
y
y3
y1 y2
x
x3
x1 x2
Energy CostInstallation and Service CostPurchase Price
Motors - Life Cycle Costs
A Years B Years C Years
Energy Efficiency Motors - Energy Saving Potential
AAA
MOTORSMARKET IN INDIA 2014.PPT
15. 15
SAMPLEIS Standard AA – Comparative Analysis (2/3)
IS AA1 vs. AA2
CLAUSE/
DESCRIPTION
IS AA1 IS AA2
XX xx1 xx2
YY yy1 yy2
ZZ zz1 zz2
AA aa1 aa2
BB bb1 bb2
CC cc1 cc2
MOTORSMARKET IN INDIA 2014.PPT
16. 16
SAMPLECategory
At the end of 10th
Plan
At the end of 11th
Plan
Expectedaddition
during 12th Plan
Total by the end of
12th Plan (Expected)
TransmissionLines (AC & HVDC)
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
Figures in ckm
Sub Stations (AC & HVDC)
Total – HVDC terminal
capacity in MW
-- -- -- --
Total – AC Substation
capacity in MVA
-- -- -- --
Figures in MVA/MW
Power Transmission Network Expansion – 12th Five Year Plan
Required Fund for
development of
transmission system
during 12th Plan
Period
1,8001,6001,4001,2001,0008006004002000
INR bn
20------ AAAx y z Central Sector
State Sector
Private Sector
Note: ckm refers to circuit kilometer MW refers to Mega Watt and MVA refersto Mega Volt Ampere
MOTORSMARKET IN INDIA 2014.PPT
17. 17
SAMPLEEnergy Efficient Motors Penetration
Energy Efficient Motors Demand Share
Energy Efficient Motors (3/3)
YY
XX
YY2
XX1
Others
Energy Efficient Motors
2013 2018e
Adoptionof energy efficient motors can be acceleratedby imposition of government regulationsand rise in consumer
awareness
MOTORSMARKET IN INDIA 2014.PPT
18. 18
SAMPLE
Porter’s Five Forces Analysis
Competitive Rivalry
• xxx
Bargaining Power of Buyers
• xxx
Threat of New Entrants
• xxx
Impact
Medium
Impact
High
Impact
Medium
Bargaining Power of Suppliers
• xxx
Impact
Medium to High
Threat of Substitutes
• xxx
Impact
Low to Medium
MOTORSMARKET IN INDIA 2014.PPT
19. 19
SAMPLECompetitive Benchmarking (1/5)
Public Trading Comparables (FY 2012)
Player 1 Player 2 Player 3
Market Capitalization(INR mn) XX YY ZZ
Share Price (INR) XX1 YY1 ZZ1
EV/EBITDA (x) XX2 YY2 ZZ2
EV/Revenue (x) XX3 YY3 ZZ3
PE Ratio XX4 YY4 ZZ4
Note: Top 4 Public companiesbasedon the Market Capitalization; Market Capitalization isas on --/-/2014, Share Price is as on --/-/2014 and PE ratio is as on --/-/2014
MOTORSMARKET IN INDIA 2014.PPT
20. 20
SAMPLEKey Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)
Competitive Benchmarking (x/x)
-10
0
10
20
30
40
%
xxx
F
E
xxx
D
C
xxx
B
A
Net MarginOperating Margin
• xxx
MOTORSMARKET IN INDIA 2014.PPT
21. 21
SAMPLEKey Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)
Competitive Benchmarking (x/x)
-50
0
50
100
%
xxx
FE
xxx
D
C
xxx
B
A
Return on Capital EmployedReturn on Equity
0.0
0.5
1.0
1.5
2.0
xxx
Y
xxx
H
xxx
G
Current Ratio
• xxx
MOTORSMARKET IN INDIA 2014.PPT
22. 22
SAMPLEKey Ratios of 3 Major Companies – Operational Basis (FY 2013) (x/x)
Competitive Benchmarking (x/x)
0.0
0.5
1.0
1.5
xxx
A3
xxx
A2
xxx
A1
Asset Turnover Ratio
• xxx
MOTORSMARKET IN INDIA 2014.PPT
23. 23
SAMPLE
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
Pune Head Office
Public: Domestic Company – Player 1 (x/x)
MOTORSMARKET IN INDIA 2014.PPT
24. 24
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR 1417.8 mn in FY
2012, as compared to net profit of INR 1397.4 mn in FY 2011
• The company reported total income of INR 10,252.73 mn in FY
2012, registering an increase of 26.8% over FY 2011
• The company earned an operating margin of 17.0% in FY 2012,
an increase of 2.44 percentage points over FY 2011
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
MarketCapitalization (INR mn) 42,886.0
Total Enterprise Value (INR mn) 38,015.3
EPS (INR)* 58.49
PE Ratio (Absolute)* 17.78
Particulars
y-o-ychange
(2012-11)
2012 2011 2010 2009
Profitability Ratios
OperatingMargin 2.44 17.00% 14.56% 19.39% 25.14%
Net Margin -3.46 13.83% 17.28% 19.03% 11.02%
Profit Before Tax Margin 0.60 19.20% 18.60% 20.52% 11.43%
Return on Equity -1.84 16.87% 18.70% 18.00% 16.74%
Return on Capital Employed 5.09 20.54% 15.45% 18.26% 38.19%
Return on WorkingCapital 13.52 39.79% 26.28% 28.62% 86.59%
Return on Assets 4.25 17.18% 12.93% 14.24% 31.01%
Return on Fixed Assets 5.17 58.36% 53.19% 54.69% 70.72%
Cost Ratios
Operatingcosts (% of Sales) -2.25 82.58% 84.83% 80.50% 74.61%
Administration costs (% of
Sales)
-1.42 6.67% 8.09% 7.31% 8.48%
Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
Liquidity Ratios
CurrentRatio -9.39% 3.64 4.01 3.26 2.91
Cash Ratio -12.89% 2.06 2.37 1.92 1.14
Leverage Ratios
Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover -4.45% 3.35 3.51 2.81 2.79
Asset Turnover 15.72% 0.99 0.85 0.73 1.22
CurrentAsset Turnover 27.36% 1.66 1.30 1.02 2.24
WorkingCapital Turnover 31.90% 2.28 1.73 1.47 3.41
Capital Employed Turnover 14.52% 1.19 1.04 0.94 1.50
Improved Decline
Net Profit/LossTotal Income
10252.7
8084.96045.35997.9
1,417.81,397.4
1,150.2
660.9
0
5000
10000
15000
0
500
1,000
1,500
INR mnINR mn
2012201120102009
Public: Domestic Company – Player 1 (x/x)
MOTORSMARKET IN INDIA 2014.PPT
26. 26
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WS
Public: Domestic Company – Player 1 (x/x)
MOTORSMARKET IN INDIA 2014.PPT
27. 27
SAMPLE
Private: Domestic Company – Player 2 (x/x)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Name Designation
Bangalore
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
MOTORSMARKET IN INDIA 2014.PPT
28. 28
SAMPLE
Private: Domestic Company – Player 2 (x/x)
Shareholders of the Company Ownership Structure
Name No. of Shares held
XXX
XXX
XXX
xxxxxxxxx
MOTORSMARKET IN INDIA 2014.PPT
29. 29
SAMPLEFinancial Snapshot Key Ratios
Particulars
y-o-ychange
(2012-11)
2012 2011 2010 2009
Profitability Ratios
OperatingMargin -0.66 2.49% 3.15% 7.82% 7.17%
Net Margin -0.15 1.78% 1.93% 5.11% 6.50%
Profit Before Tax Margin -0.66 2.49% 3.15% 7.82% 7.17%
Return on Equity 0.00001 0.0001% 0.0001% 0.0002% 0.0003%
Return on Capital Employed -0.00002 0.0001% 0.0001% 0.0003% 0.0003%
Return on WorkingCapital 0.000001 0.000209% 0.000211% 0.0004% 0.0003%
Return on Assets -0.00001 0.0001% 0.0001% 0.0002% 0.0003%
Return on Fixed Assets -0.00003 0.0003% 0.0003% 0.0014% 0.0083%
Cost Ratios
Operatingcosts (% of Sales) 0.66 97.51% 96.85% 92.18% 92.83%
Administration costs (% of
Sales)
N.A. N.A. N.A. N.A. N.A.
Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
Liquidity Ratios
CurrentRatio -9.75% 1.58 1.75 1.96 2.52
Cash Ratio -33.53% 0.17 0.26 0.33 1.01
Leverage Ratios
Debt to Equity Ratio 151.97% 0.25 0.10 0.00 0.07
Debt to Capital Ratio 121.87% 0.20 0.09 0.00 0.06
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover 13.44% 0.00012 0.00011 0.00018 0.00115
Asset Turnover 8.16% 0.00002 0.00002 0.00002 0.00004
CurrentAsset Turnover 7.77% 0.00003 0.00003 0.00003 0.00003
WorkingCapital Turnover 25.98% 0.00008 0.00007 0.00005 0.00004
Capital Employed Turnover 19.72% 0.00004 0.00004 0.00004 0.00004
Private: Domestic Company – Player 2 (x/x)
Improved Decline
Financial Summary
• The company earned a net profit of INR 624 in FY 2012, as
compared to net profit of INR 583 in FY 2011
• The company reported total income of INR 35,128 in FY 2012,
as compared to INR 30,200 in FY 2011
• The company earned an operating margin of 2.49% in FY 2012,
a decrease of 0.66 percentage points over FY 2011
• The company reported debt to equity ratio of 0.001 in FY 2011,
a decrease of 98.87% over FY 2010
Net Profit/LossTotal Income
35,128.0
30,200.0
35,029.0
29,919.0
624.0
1791.0
1945.0
0
10,000
20,000
30,000
40,000
0
500
1000
1500
2000
INRINR
20122011
583.0
20102009
MOTORSMARKET IN INDIA 2014.PPT
31. 31
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WS
Private: Domestic Company – Player 2 (x/x)
MOTORSMARKET IN INDIA 2014.PPT
32. 32
Thank you for the attention
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Motors Market – India report is part of Netscribes' ‘Energy' Industry Series.
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MOTORSMARKET IN INDIA 2014.PPT