consumer durables indian market overview 2012
TRANSCRIPT
![Page 1: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/1.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 1/34
11
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
![Page 2: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/2.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 2/34
22
ContentsAdvantage India
Market overview and trends
Growth drivers
Success stories: Videocon, LG, Samsung
Opportunities
Useful information
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
![Page 3: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/3.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 3/34
33
Consumer Durables
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
NOVEMBER
2011
AdvantageIndia
• Growth in consumer durables likely toaccelerate as disposable incomes andadoption of plastic credit rise
• Additionally, increasing electrificationof rural areas would augmentdemand
• Rural markets expected togrow at a CAGR of 25 per centfrom USD2.1 billion in FY10 toUSD6.4 billion in FY15
• Huge untapped ruralmarkets —only 2 per centpenetration for refrigeratorsand 0.5 per cent for washingmachines
• Sector attracted significantinvestments even during globalrecession
• USD1 billion worth of investments inproduction, distribution and R&D inthe next few years
• 100 per cent FDI allowed in theelectronics hardware-manufacturingsector under the automatic route
• Duty relaxation, schemes such asEPCG, EHTP to provide tax sops
Market size-USD12.5billion
FY15E
Market size-USD2.9billion
FY03
Source: Corporate Catalyst India, FY15E - estimate for financial year 2015. Based on growth estimates by Corporate Catalyst India,Moneycontrol , GEPL capital
Notes: FDI – Foreign direct investment, FY- Indian financial year (April – May), USD- US Dollar, EPCG- Export Promotion Capital Goods
Scheme, EHTP- Electronic Hardware Technology Park
Growing demand Opportunities
Increasing investments Policy support
![Page 4: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/4.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 4/34
44
ContentsAdvantage India
Market overview and trends
Growth drivers
Success stories: Videocon, LG, Samsung
Opportunities
Useful information
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
![Page 5: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/5.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 5/34
55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
The consumer durables market is splitinto two segments
Consumer DurablesNOVEMBER
2011
Consumerdurables
Consumerelectronics
(brown goods)
Televisions Audio and video systems
CD and DVDplayers
Personalcomputers
Laptops Digital cameras
Electronicaccessories Camcorders
Consumerappliances
(white goods)
Air conditioners Refrigerators
Washingmachines
Sewingmachines
Electric fans Cleaning
equipment
Microwaveovens
Other domesticappliances
Source: Electronic Industries Association of India, Corporate Catalyst India, Aranca Research
![Page 6: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/6.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 6/34
66For updated information, please visit www.ibef.org
Evolution of the Indian consumerdurables sector
MARKET OVERVIEW AND TRENDS
Consumer DurablesNOVEMBER
2011
• Closed market• Increased product
availability,increased mediapenetration andadvertising
• Liberalisation of markets• Influx of global players
such as LG and Samsung• Shift in focus from
promotion to productinnovation
• Increasing availabilityand affordability ofconsumer financeprovides impetus togrowth
• Low penetration of
high-end products suchas air conditioners (<1percent)
• Companies look toconsolidate marketshare
• Indian companies suchas Videocon gainingglobal identity
• Increasing penetrationof high-end products
such as air Conditioners(>3 percent)• Introduction of new
aspirational productssuch as High DefinitionTVs (HDTVs)
Source : Financial Express, ApplianceMagazine, Aranca Research
Introductorystage
Mid and late1990s
Liberalisationstage
Early 2000s
Growth stage
Late 2000s
ConsolidationStage
1980s andearly 1990s
![Page 7: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/7.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 7/3477For updated information, please visit www.ibef.org
Consumer durables revenues have beengrowing at a healthy pace … (1/2)
→ The consumer durables market recorded revenues ofUSD6.3 billion in FY10
→ During FY03-10, the industry expanded at a CAGR of11.7 per cent
Size of consumer durables market
Source : Electronic Industries Association of India,Corporate Catalyst India, Aranca Research
MARKET OVERVIEW AND TRENDS
Consumer DurablesNOVEMBER
2011
2.93.2 3.5
3.84.2
4.7 5.2
6.3
0
1
2
3
4
5
6
7
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
USD billion
Notes: FY – Indian Financial Year (April-March), USD – US DollarCAGR – Compound Annual Growth Rate
![Page 8: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/8.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 8/3488For updated information, please visit www.ibef.org
Consumer durables revenues have beengrowing at a healthy pace … (2/2)
→ Urban markets lead the revenues, accounting for two-thirds of the total sales in India
→ Rural and semi-urban markets are growing at aremarkable pace over the last few years on account of
high sales in products such as TVs, washing machinesand water purifiers
Composition of consumer durables market (FY 2010)
Source : Electronic Industries Association of India,Corporate Catalyst India, Aranca Research
MARKET OVERVIEW AND TRENDS
Consumer DurablesNOVEMBER
2011
33%
67%
Rural
Urban
![Page 9: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/9.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 9/3499For updated information, please visit www.ibef.org
Consumer electronics- key products
MARKET OVERVIEW AND TRENDS
Consumer DurablesNOVEMBER
2011
Colour TVs (CTVs)• CTVs are the largest contributors to this segment; market size estimated at 18
million units in 2010. During this period, 21-inch CTVs dominated the market witha 65 per cent share
Liquid crystaldisplays (LCDs)
• LCDs are perceived as high-end products•
Indian LCD market in 2010 was about 3.2 million units• The price decline due to relatively low import duty on LCD panels and the
introduction of small entry-size models have triggered growth in LCD sales
Digital video discs(DVDs)
• The Indian DVD market was estimated at 6.2 million units in 2009• The organised market accounts for 80 per cent of the total DVD market
Direct-to-home(DTH)
• The set-top box (STB) market is growing rapidly, due to the expansion of DTHand introduction of the conditional access system (CAS) in metros
• During 2010-2012, the subscriber base is expected to grow from 23 million to 42million, making India the largest DTH market in the world
Source : Electronic Industries Association of India, Corporate Catalyst India,India Infoline, TV Veopar Journal 2011, Business Line, Aranca Research
![Page 10: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/10.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 10/34
1010For updated information, please visit www.ibef.org
Consumer appliances- key products
MARKET OVERVIEW AND TRENDS
Consumer DurablesNOVEMBER
2011
Refrigerators• The Indian refrigerator market was estimated at 6.5 million units in 2010, the
largest in this segment• Reduction in prices and high demand for frost-free segment are driving growth
Air conditioners(ACs)
•
ACs are perceived as high-end products, current penetration stands at 3 per cent• Split ACs are driving growth in the market
Washing appliances
• Washing machines are the second largest contributor to this segment afterrefrigerators; total market in 2010 was 4.7 million units
• Fully automatic washing machines are garnering an increasing share of themarket due to reduction in prices
Electric fans• This is a highly penetrated market• Electric fans are an essential utility for more than six months of the year in most
parts of the country
Source : Electronic Industries Association of India, Corporate Catalyst India,TV Veopar Journal 2011, Aranca Research
![Page 11: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/11.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 11/34
1111For updated information, please visit www.ibef.org
Key players in the consumer durablessector … (1/2)
*This list is indicative.
MARKET OVERVIEW AND TRENDS
Company Product category
ACs, refrigerators and specialty cooling products
ACs and cooling equipment
Refrigerators, ACs, washing machines, microwave ovens, DVD players, digital-imaging products
and audio-visual products
ACs and refrigerators
TVs, audio-visual solutions, computers, mobile phones, refrigerators, washing machines,
microwave ovens, vacuum cleaners and ACs
LCDs, washing machines, DVD players, ACs, microwave ovens, mobile phones, projectors and
display products
Consumer DurablesNOVEMBER
2011
![Page 12: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/12.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 12/34
1212For updated information, please visit www.ibef.org
Key players in the consumer durablessector … (2/2 )
*This list is indicative.
MARKET OVERVIEW AND TRENDS
Company Product category
TVs, home theatre systems, DVD players, audio products, personal care products, household
products, computers and phones
TVs, home theatre systems, DVD players, mobile phones, digital cameras and camcorders,
refrigerators, ACs, washing machines, microwave ovens and computers
TVs, projectors, DVD players, audio systems, home theatre systems, digital cameras and
camcorders, computers, video-gaming products and recording media
TVs, DVD players, microwave ovens, refrigerators, washing machines, ACs and power backupsolutions
Refrigerators, washing machines, microwave ovens, water purifiers and power backup solutions
Consumer DurablesNOVEMBER
2011
![Page 13: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/13.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 13/34
1313For updated information, please visit www.ibef.org
Major trends in the consumer durablessector
Increasing presenceof organised retail
• Emergence of speciality retailers, such as Croma, Next and eZone, is intensifyingcompetition
• Companies are setting up exclusive stores or single-brand retail outlets
Expansion into newsegments
• Companies are venturing into new product segments, such as high-definitiontelevisions (HDTVs) and smartphones, buoyed by rising consumer incomes andeasy availability of credit
Increasedaffordability of
products
• Advancement in technology and higher competition are driving price reductionsacross various consumer durable product segments such as computers, mobilephones, refrigerators and TVs
MARKET OVERVIEW AND TRENDS
Focus on energy-efficient andenvironment-
friendly products
• Leading companies have introduced star-rated, energy-efficient ACs andrefrigerators
• Companies also plan to increase the use of environment-friendly componentsand reduce e-waste by promoting product recycling
Consumer DurablesNOVEMBER
2011
![Page 14: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/14.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 14/34
1414
ContentsAdvantage India
Market overview and trends
Growth drivers
Success stories: Videocon, LG, Samsung
Opportunities
Useful information
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
![Page 15: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/15.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 15/34
1515For updated information, please visit www.ibef.org GROWTH DRIVERS
Strong demand and policy supportdriving investments
Consumer DurablesNOVEMBER
2011
Stronggovernment
support
Large domesticmarket
Growing demand
Inviting Resultingin
Growing demand Increasing investmentsPolicy support
Higher realdisposable
incomes
Easy consumercredit
Growingconsumer base
Setting up ofEHTPs
Increasingliberalisation,
tariff relaxation
Policy sops,favourable FDI
climate
Expandingproduction anddistribution
facilities in India
Increased R&Dactivity
Providing supportto global projects
from India
Notes: EHTP- Electronic Hardware Technology Park, FDI- ForeignDirect Investment, R&D- Research and Development
![Page 16: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/16.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 16/34
1616For updated information, please visit www.ibef.org
Income growth will drive consumerdurables demand
→ Multiple drivers are leading to a growth in the Indian consumer durables sector
→ Significant increase in discretionary income and credit availability lead to shortened product replacement cyclesand evolving lifestyles where consumer durables, such as ACs and LCD TVs, are perceived as utility items ratherthan luxur y possessions
→
Growth in middle and upper sections of the population is also driving demand for consumer durables
Per-capita GDP growth
Source : IMF, Aranca Research
Consumer DurablesNOVEMBER
2011
Real GDP growth projections
Source : IMF, Aranca Research
4.6%
6.9% 7.6%
9.0% 9.5%
10.0%
6.2%6.8%
10.1%7.8%
7.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
10
2030
40
50
60
70
2002 2004 2006 2008 2010 2012F
GDP constant prices (INR trillion) Annual growth rate-RHS
2.1%2.8%
5.1%
6.4%
7.5% 8.0% 8.3%
4.6% 5.2%
8.8%
0%
1%
2%
3%
4%5%
6%
7%
8%
9%
10%
2001 2003 2005 2007 2009
GROWTH DRIVERS
Notes: Growth projections have been taken from the IMF
![Page 17: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/17.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 17/34
1717For updated information, please visit www.ibef.org
Policy support aiding growth in thesector
GROWTH DRIVERS
Customs dutyrelaxation
• IT/Electronics sector the first in India to be allowed complete customs exemptionon certain items used for manufacturing electronic goods
• The peak rate of basic customs duty is 10 per cent• Imports of parts of printers and drivers have been exempted from special
additional duty of 4 per cent
Reduced centralexcise
• The mean rate of excise duty is 10 per cent•
Components and accessories of mobile handsets and PC connectivity cables areexempt from excise
Encouragement toFDI
• 100 per cent FDI is permitted in the electronics hardware-manufacturing sector under the automatic route
Source : Department of Commerce, Government of India ; Corporate Catalyst India, Aranca ResearchNotes: FDI - Foreign Direct Investment, EPCG- Export Promotion Capital Goods scheme,
EHTP- Electronic Hardware Technology Park Scheme
EPCG, EHTP schemes• EPCG allows import of capital goods on paying 3 per cent customs duty• EHTP provides benefits, such as duty waivers and tax incentives, to companies
which replace certain imports with local manufacturing
Consumer DurablesNOVEMBER
2011
![Page 18: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/18.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 18/34
1818For updated information, please visit www.ibef.org
Recent Investments by key players
GROWTH DRIVERS
Source : Company websites, The Hindu, Economic Times, BusinessStandard, Aranca Research
Notes: R&D- Research and Development
Consumer DurablesNOVEMBER
2011
2009
• Jun 09: LG doubles theannual R&D investmentoutlay to USD83.3 million
• Nov 09: Samsungallocates USD100 millionfor capacity expansion atexisting plants
• Dec 09: Panasonicdesignates USD300million investment toconsolidate position inAC segment
2010
• May 10: LG earmarksaround USD85 million for
upgrading Indian plants• Sep 10: Haier invests to
open 75 new retail stores(called ExperienceCentres) in India in 2010
• Nov 10: Samsunginaugurates USD75million manufacturingfacility in Chennai
2011
• Feb 11: Whirlpoolannounces USD25 millioninvestment in FY11
• Apr 11: Hitachi allocatesUSD400 million to set upR&D centre in Bangalore
• May 11: Panasonicestablishes its first R&Dcentre in India inGurgaon
![Page 19: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/19.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 19/34
1919
ContentsAdvantage India
Market overview and trends
Growth drivers
Success stories: Videocon, LG, Samsung
Opportunities
Useful information
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
![Page 20: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/20.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 20/34
2020For updated information, please visit www.ibef.org SUCCESS STORIES: VIDEOCON, LG, SAMSUNG
Videocon: The Indian behemoth … (1/2)
Consumer DurablesNOVEMBER
2011
→ Third largest consumer durables company in India
→ Holds a bout one-fourth market share in the consumerdurables market
→ Leads the market in colour TV, refrigerator, washingmachine, and microwave oven segments
Market share in consumer durables (FY10)
Source : Company website, ISM Capital, ArancaResearch
25%
75%
Videocon
Others
![Page 21: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/21.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 21/34
NOVEMBER
![Page 22: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/22.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 22/34
2222For updated information, please visit www.ibef.org
LG and Samsung: Compelling successstories … (1/4)
Consumer DurablesNOVEMBER
2011
SUCCESS STORIES: VIDEOCON, LG, SAMSUNG
→ Between them, LG and Samsung account for thelargest share of the market
→ Both companies entered the Indian market in the mid1990s
→ LG took the lead – its 2007 revenues (USD2.4 billion)were almost double of Samsung ‘s (USD1.3 billion)
→ However, high growth in mobile phone sales sawSamsung equal LG’s revenues by 2010 (USD3.6 billion)
Revenues
Source : Company websites, Aranca Research
2.4
3.3
1.3
3.3
0
1
1
2
23
3
4
2007 2010
LG Samsung
USD billions
NOVEMBER
![Page 23: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/23.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 23/34
2323For updated information, please visit www.ibef.org
LG and Samsung: Compelling successstories … (2/4)
Consumer DurablesNOVEMBER
2011
SUCCESS STORIES: VIDEOCON, LG, SAMSUNG
→ Before 2005, LG’s strategy was to offer affordableproducts, while Samsung focused on premiumofferings
→ After 2005, the two have expanded the scope of their
target markets and offer both functional and high-endproducts
→ New market development and product innovationhave been the key success factors for the companies
Expanding target markets
Source : Company websites, Aranca Research
```
PremiumSegment
MassSegment
Before 2005
SamsungLG
After 2005
NOVEMBER
![Page 24: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/24.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 24/34
2424For updated information, please visit www.ibef.org
LG and Samsung: Compelling successstories … (3/4)
Consumer DurablesNOVEMBER
2011
SUCCESS STORIES: VIDEOCON, LG, SAMSUNG
→ In FY10, LG and Samsung comprised of about one-third of the consumer durables and mobile phonemarkets combined
→ Between the two, Samsung leads the mobile handset
and premium flat panel TV market
→ LG has a stronger presence in other consumerdurables, including refrigerators, washing machines,microwave ovens, air-conditioners and televisions
Consumer durables and mobile phones: market share
Source : Company websites, Aranca Research
14%
15%
71%
LG
Samsung
Others
NOVEMBER
![Page 25: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/25.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 25/34
2525For updated information, please visit www.ibef.org
LG and Samsung: Compelling successstories … (4/4)
Consumer DurablesNOVEMBER
2011
SUCCESS STORIES: VIDEOCON, LG, SAMSUNG
→ LG expects India’s share in its global revenues todouble to 12 per cent in FY15 from 6 per cent in FY10 ;Samsung anticipates a similar increase from 2.5 percent to 5 per cent
→ The Korean giants are also looking at India as amanufacturing base for other markets and areramping up investments accordingly
→ LG currently exports to countries in the Middle East,Africa, Southeast Asia and Europe from India
India’s share in company’s global revenues
Source : Company websites, Aranca Research
0%
2%
4%
6%
8%
10%
12%
14%
FY10 FY15E
LG Samsung
![Page 26: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/26.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 26/34
2626
ContentsAdvantage India
Market overview and trends
Growth drivers
Success stories: Videocon, LG, Samsung
Opportunities
Useful information
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
![Page 27: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/27.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 27/34
NOVEMBER
![Page 28: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/28.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 28/34
2828For updated information, please visit www.ibef.org OPPORTUNITIES
Consumer durable firms to augmentinvestments in coming years … (1/2)
Consumer DurablesNOVEMBER
2011
→ Videocon, India’s third largest consumer durables manufacturer, plans USD333 million capex for setting up a LCDmanufacturing plant in Chennai by the end of 2011
→ Market leader LG has earmarked around USD292 million for enhancing production capacity and strengthening its LGbrand shop network by 2012
→ Japan’s Panasonic plans to invest USD208 million by 2014 in setting up manufacturing units and an advanced R&Dcentre
→ Samsung, India’s second largest consumer durables maker, plans to invest USD94 million to expand capacity by 2015
→ LCDs are expected to be one of the fastest growing segments, growing at a phenomenal CAGR of 87.6 per centduring 2009-12
USD- US Dollar, LCD- Liquid Crystal Display
NOVEMBER
![Page 29: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/29.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 29/34
2929For updated information, please visit www.ibef.org OPPORTUNITIES
Consumer durable firms to augmentinvestments in coming years … (2/2)
Consumer DurablesNOVEMBER
2011
LCD TV shipments
Source : TV Veopar Journal 2011, estimates by IHS iSuppliMarket Intelligence, Aranca Research
Upcoming investments by major players
Source : Business Standard, Company websites, ArancaResearch
1.5
3.3
6.3
9.9
0
2
4
6
8
10
12
2009 2010 2011E 2012E
millionunits
CAGR:87.6%
333
292
208
94
42
21
13
0 100 200 300 400
Videocon
LG
Panasonic
Samsung
Havells
Godrej
Onida
USD million
![Page 30: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/30.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 30/34
3030
ContentsAdvantage India
Market overview and trends
Growth drivers
Success stories: Videocon, LG, Samsung
Opportunities
Useful information
For updated information, please visit www.ibef.org
Consumer Durables NOVEMBER
2011
blNOVEMBER
![Page 31: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/31.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 31/34
3131For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry associations … (1/2)
Consumer Guidance Society of IndiaBlock 'J' Mahapalika Marg, Mumbai –400 001Tele fax: 91-22 22621612/2265 9715E-mail: [email protected]: www.cgsiindia.org
Retailers Association of India111/112, Ascot Centre, Next to Hotel Le Royal Meridien,Sahar Road, Sahar, Andheri (E), Mumbai –400099.Tel: 91-22-28269527 —28Fax: 91-22-28269536Website: www.rai.net.in
Consumers Association of India3/242, Rajendra Gardens, Vettuvankeni, Chennai,Tamil Nadu –600 041Tel: 91-44-2449 4576/4578Fax: 91-44-2449 4577E-mail: [email protected]
Consumer Durables 2011
C D blNOVEMBER
![Page 32: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/32.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 32/34
3232For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry associations … (2/2)
Consumer Electronics and Appliances Manufacturers Association5th Floor, PHD House4/2, Siri Institutional Area, August K ranti MargNew Delhi-10 016Telefax: 91- 11- 46070335, 46070336
e-mail: [email protected]: www.ceama.in
ELCINA Electronic Industr ies Association of India (Formerly ElectronicComponent Industries Association)ELCINA House, 422 Okhla Industrial Estate, Phase IIINew Delhi -110020Tel: 91- 11- 26924597, 26928053
Fax: 91- 11- 26923440e-mail: [email protected]: www.elcina.com
Consumer Durables 2011
C D blNOVEMBER
![Page 33: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/33.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 33/34
3333For updated information, please visit www.ibef.org
Glossary
→ CAGR: Compound Annual Growth Rate
→ Capex : Capital Expenditure
→ CENVAT : Central Value Added Tax
→
EHTP: Electronic Hardware Technology Park→ EPCG: Export Promotion Capital Goods Scheme
→ FDI: Foreign Direct Investment
→ FY: Indian financial year (April to March)
→ So FY10 implies April 2009 to March 2010
→ LCD: Liquid Crystal Display→ R D: Research and Development
→ USD: US Dollar
→ Conversion rate used: USD1= INR 48
→ Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
Consumer Durables 2011
C D blNOVEMBER
![Page 34: Consumer Durables indian market overview 2012](https://reader033.vdocuments.us/reader033/viewer/2022052608/577cd2cf1a28ab9e78960b43/html5/thumbnails/34.jpg)
8/13/2019 Consumer Durables indian market overview 2012
http://slidepdf.com/reader/full/consumer-durables-indian-market-overview-2012 34/34
India Brand Equity Foundation (IBEF) engaged Aranca toprepare this presentation and the same has beenprepared by Aranca in consultation with IBEF.
All rights reserved. All copyright in this presentation andrelated works is solely and exclusively owned by IBEF.
The same may not be reproduced, wholly or in part inany material form (including photocopying or storing it inany medium by electronic means and whether or nottransiently or incidentally to some other use of thispresentation), modified or in any manner communicatedto any third party except with the written approval ofIBEF.
This presentation is for information purposes only. While
due care has been taken during the compilation of this
presentation to ensure that the information is accurate tothe best of Aranca and IBEF’s knowledge and belief, thecontent is not to be construed in any manner whatsoeveras a substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any
specific products or services that may have beenmentioned in this presentation and nor do they assumeany liability or responsibility for the outcome of decisionstaken as a result of any reliance placed on thispresentation.
Neither Aranca nor IBEF shall be liable for any direct orindirect damages that may arise due to any act oromission on the part of the user due to any reliance
placed or guidance taken from any portion of thispresentation.
Disclaimer
Consumer Durables 2011