Motors in India can be broadly classified into two types - Fractional Horse Power (FHP) motors and Integral Horse Power (IHP) motors. The focus area of the report is the IHP Motor segment. The industrial demand of motors in India used for varied purposes is increasing rapidly in India which proves to be a boon for the players. Low tension (LT), high tension (HT) and DC motors are used in industries including steel, cement, textile, pharmaceuticals, power etc. Growing attention on infrastructure and urban development projects are also going to fuel growth in the market. Even through this industry is impacted by increasing raw material prices, the players are rapidly increasing production to meet the growing demand amongst industries The report begins with an introduction of the electrical motors in India. It gives a clear differentiation between the various types of motors and provides a brief overview about the types of motors functional in India. The market overview section provides an insight into the IHP motor market and includes the market size and growth of IHP motors on the basis of volume and value. Market segmentation on the basis of types of motors is highlighted. Segmented market size and growth figures are also included to give a clear overview about the same. The type of Horse Power (HP) ratings available in the organized market with respect to the various types of IHP motors is also included. A brief overview about the Fractional Horse Power (FHP) motor market is also highlighted with market size and growth in both volume and value. It also highlights the market segmentation of the same. An analysis of the drivers explains the factors for growth of the industry including growth in important sectors, growth in power sector and huge opportunity in replacement segment. The key challenges include increase in raw material prices and competition from unorganized players. The competition section provides an overview of the competitive landscape in the industry along with market share of players in Low Tension (LT) and High Tension (HT) motors segment. It includes the segmentation of the market on the basis of organized and unorganized players with respect to the various types of motors in volume as well as value. It includes a brief profile of the major players in the market including their financials.

1. Motors Market – India
January 2011

2. Executive Summary
IHP Motors can be broadly classified into 2 categories namely, AC Motors and DC Motors,
wherein AC Motors are further classified into Low Tension (LT) and High Tension (HT) motors
IHP Motors market in terms of volume stands at XX units in 20-- - -- exhibiting a a% CAGR from
20-- - --
Market
LE
Market in terms of value stands at INR YY bn in 20-- - -- and is poised to grow at b% CAGR to
reach INR ZZ bn in 20-- - --
P
Majority of the LT & DC motors from the domestic organized sector are of GHP or less rating, and
HT motors start above Y HP rating
Drivers &
Drivers
SAM
AC Motors are poised to grow at a T rate than DC motors
Growth in important sectors
Challenges
Increase in raw material prices
Challenges Growth in Power sector Competition from unorganized players
Huge opportunity in replacement segment
Market is highly W with LT motors having m%, HT motors having n% and DC Motors having o% I
players by volume respectively
W motors requires greater investments owing to its greater efficiency of use and the stringent
customer needs that the manufacturers have to follow
Competition
Players in the Market
Player 1 Player 2 Player 3 Player 4
MOTORS MARKET IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Competition
MOTORS MARKET IN INDIA 2011.PPT 3

4. Integral Horse Power (IHP) motors can be classified under
AC and DC motors
Electrical Motors Market – Overview
Low Tension
(LT)/ They run on AV, BV or CV
Low Voltage systems
(LV) Motors
AC Motors
IHP Motors High Tension
(HT)/ They run on EV, FV or GV
High Voltage systems
DC Motors (HV) Motors
Motors
FHP Motors Focus Area of the Report
E
AC Motors DC Motors
of flow at regular intervals
PL
• Uses alternating current that reverses its direction • Uses direct-unidirectional current with strong
power at start up
M
• J in price and used for applications requiring more • Its use is often restricted to a few low speed, low-
than about E hp (R watts) of power to-medium power applications like machine tools
Source:
SA
• Used in air conditioners, washers, dryers, industrial
machinery, fans, blowers, vacuum cleaners, and
many other applications
and rolling mills
• Q compared to AC motors and is L for extended
periods of use
MOTORS MARKET IN INDIA 2011.PPT 4

5. Segment 1 leads the domestic market with the highest
usage amongst industries
IHP Motors Market – Overview Market Size & Growth (Volume)
•IHP motors is a part of the electrical 000’s units
equipment industry 2,000
Y
•Electrical equipment industry on a whole a%
1,500 X
clocked a growth of b% in 20-- - -- W
E
This has resulted in a sharp rise in the 1,000 U V
PL
performance of all the products under the market
•Motors are also experiencing a rapid growth
500
M
owing to the increased focus of government 0
A
2005-06 2006-07 2007-08 2008-09 2009-10
on infrastructure and urban development
projects
S
•The industry is witnessing a turnaround due to
increased demand from sectors like power,
textile, water, steel and cement
Market Segmentation (2009-10)
Segment 1
Segment 2
Segment 3
s2%
s3%
Segment 1 widely
used across
almost all
application
With cumulative growth and investments in these segments and
sectors, the market will get a fillip end-user
•However, the share of energy efficient motors industries
is very Y in India owing to T demand for the
same s1%
Source:
MOTORS MARKET IN INDIA 2011.PPT 5

6. AC motors are showing greater growth as compared to DC
motors
AC Motors Market Size & Growth
• This segment comprises of Low Tension (LT) motors Segment 1
and High Tension (HT) motors INR bn Segment 2
• It offers the advantages of simple design, low cost, 80 Z
a%
reliable operations and easily found replacements Y c6%
60 X
c5%
LE
• Has high power to weight ratio and wide range of W
V c4%
40 U c3%
power output c2%
c1% b6%
P b4% b5%
• Tends to offer potential for energy savings and cost 20
b1% b2% b3%
efficiency when coupled with speed control devices
M
0
2009-10 2010-11e 2011-12e 2012-13e 2013-14e 2014-15e
DC Motors
SA
• Offers the advantages of easy to understand design,
easy to control speed, easy to control torque and
simple drive design
Market Size & Growth
INR bn
2.0 b%
• Are Q compared to AC motors and cannot reliably be L M N O P Q
1.5
controlled at K speeds
• Physically S in size and requires U maintenance 1.0
0.5
0.0
2009-10 2010-11e 2011-12e 2012-13e 2013-14e 2014-15e
Source:
MOTORS MARKET IN INDIA 2011.PPT 6

7. Drivers & Challenges – Summary
Challenges
Drivers Increase in raw material prices
Growth in important sectors Competition from unorganized players
Growth in power sector
Huge opportunity in replacement
segment
MOTORS MARKET IN INDIA 2011.PPT 7

8. Company 1 leads the LT motor segment and Company 2
leads the HT motor segment
Overview Market Share of Segment 1 (2009-10)
•HT motors require M investments owing to its Company 1
greater efficiency a7% a1% Company 2
HT motor is a Y intensive product and hence Company 3
LE
customers tend to prefer established players from Company 4
the organized sector Company 5
P
a6%
a2%
Company 6
Manufacturers have to follow stringent customer a5%
M
Others
acceptance criteria a4% a3%
A
•Major players in the market include:
S
Company 1, Company 2, Company 3, Company 7
and Company 8
Market Share of Segment 2 (2009-10)
•Company X is a new entrant in the market Company 7
b5% b6% Company 8
with LT motors on offer
b4% Company 9
Company 10
b1% Company 11
b3%
Others
b2%
Source:
MOTORS MARKET IN INDIA 2011.PPT 8

9. Major Players (1/10)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue
Headquarters Location 1 Revenue Profit
INR bn Profit / Loss INR bn
Founded 19-- 80 r3 6
r2 r4
60
Company r1 4
Listed
Type 40
2
20
Key People Person 1 – MD 0 0
2006 2007 2008 2009
Business Highlights
• Provides engineering, products, solutions, and services in areas of automation and power technology in India and
abroad
LE
• It functions under T segments
P
• It also provides discrete automation and motion products, including drives, motors and generators
• Its operations in India include Q manufacturing facilities with over R employees
SAM
• As of July 27, 20--, it operates as a subsidiary of Company G
Source:
MOTORS MARKET IN INDIA 2011.PPT 9

10. Thank you for the attention
The IHP Motors Market – India report is part of Research on India’s Power Equipment
Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Gaurav Kumar
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MOTORS MARKET IN INDIA 2011.PPT 10