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HIGHLIGHTS OF

BALL VALVE INDUSTRY

BIG STRATEGIC MANAGEMENT CONSULTANTS

3, Hindustan Kohinoor Complex, L B S Marg, Vikhroli (W), Mumbai, India

Tel: 022 67427821-29 Fax 022 67427826

P.O. Box 29815, Dubai, United Arab Emirates.

Tel 00971-4-431 5672 Fax 00971-4-431 5673 URL: www.big-consultants.com

Mazustegui 21- 2a Entreplanta Izquierda , 47806 , Bilbao Vizcaya , Spain

Strategic Management Consultants

Indian Economy Scenario

Understanding the Product - Valves

Global Ball Valve Industry Scenario

Ball Valve Industry in India

Growth Drivers for Ball Valve Industry

How can BIG Help?

CONTENTS

2


INDIAN ECONOMIC SCENARIO

Source: International Monetary Fund (IMF)

After several consecutive years of strong growth, the world economy entered into the worst recession which started in

third quarter of 2008.

All the advanced economies faced deep economic crisis , as the world GDP dropped by 1.3% in 2009.

The signs of recovery shall be visible from fourth quarter of 2010.

The Indian economy which has also been impacted by the global turmoil, posted a growth of 6.7% in FY 2009.

Agriculture 17%

Industry 20% Services

63%

GDP Composition 2009

4,950 6,364 7,260 8,957 9,523 10,142 5,893

9,617 11,550 14,803 10,324

16,704 11,173

18,763 20,696

26,588 36,064 32,811

0

10000

20000

30000

40000

50000

60000

70000

2003-04 2005-06 2006-07 2007-08 2008-09 2009-10

INR

Bil

lio

n (

at

Cu

rre

nt

Pri

ces)

INDIA- GDP

Primary Secondary Tertiary


4

9.2 9.8 9.3 6.7 7.2

5.4 5.9 5.8

4.3

-2.2

-5

0

5

10

15

2006 2007 2008 2009 2010

Gro

wth

Ra

te (

in %

)

Real GDP Growth Rate: India vs. World

INDIA WORLD

8,547

11,927

13,718 13,153 13,436

5,874

7,684 8,608 8,344 8,721

740 1,158 1,287 1,556 1,674

0

2000

4000

6000

8000

10000

12000

14000

16000

2006 2007 2008 2009 2010*

INR

Bil

lio

n

INDIA - Growing Trade and Investments

Imports Exports FDI

Transformation

Average Real GDP growth in

last 5 year was 8.5%.

GDP Per Capita is INR 48,000

Projected GDP growth in

2010-11 is 8.2%

Source: IMF

Source: Reserve Bank of India (RBI Database)

INDIAN ECONOMIC SCENARIO







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CONTENTS

5


6

TYPES OF VALVES

Multi-Turn or Linear Motion Valves

Quarter turn valves

Valves

Gate Valve Plug Valve Ball Valve Globe Valve Pinch Valve

Needle Valve Butterfly Valve







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CONTENTS

7


8

GLOBAL VALVE INDUSTRY SCENARIO

2005 2006 2007 2008 2009 2010

41,592 43,414 45,301

47,399 49,622 52,047

Global Valve Market (USD Million)

18%

14%

12%

6%

50%

Global Sector wise Consumption of Valves (%)

Oil & Gas

Refining Sector

Power Sector

Minicipal Sector

Others

Source: Industrial Valves World Markets Report by McIlvaine Company

The Global Valve

Industry grew at a rate of

4-5% year on year basis.


By 2010, annual sales of valves will exceed USD 50

billion .

While China will be the fastest growing purchaser of

valves, U.S. will remain on top followed by Japan

and Germany. The UK will occupy fifth place

followed by France, South Korea, Italy, Taiwan, and

Canada.


9

GLOBAL BALL VALVE INDUSTRY

By 2010, the United States of America is expected to be the biggest market of the world for industrial ball

valves with a market size of USD 1866.13 million followed by China and Russia.

However India is expected to stand 10th in the global ranking for markets of industrial ball valves with a

market size of USD 274 Million.

As per Industrial Valves World Markets Report by McIlvaine Company, in 2009 Ball Valve Market

constituted 25% of the total world valve market.


Similar to the growth of

valves, ball valves is also

expected to grow at a rate of

nearly 5% per annum crossing

USD 11,000 million by 2010.

2005 2006 2007 2008 2009 2010

9,233 9,631

10,038 10,480 10,950 11,458

Global Ball Valve Market (USD Million)







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CONTENTS

10


11

VALVE INDUSTRY IN INDIA

2005 2006 2007 2008 2009 2010

1,206 1,270 1,334 1,409 1,509

1,603

Indian Valve Market (USD Million)


The Indian valve industry is expected to grow at a higher pace than the global valve industry.

Indian valves industry has come a long way from making simple valves to producing a wide range of

sophisticated precision valves. But the Indian valve space is as fragmented as the Global Valve Industry.

The organized segment in Indian Valve Industry contributes to 60% of the total market share with major

players being Fouress Group, Oswal Industries Ltd., Virgo Engineers Ltd., Flanges Pvt Ltd.

The unorganized segment comprises of small and medium scale players with heavy dependence on Sub

contractors.

Similar to the growth of

valves, ball valves is also

expected to grow at a rate of

nearly 5% per annum crossing

USD 11,000 million by 2010.


12

BALL VALVE INDUSTRY IN INDIA


2005 2006 2007 2008 2009 2010

211 222 233 245

259 274

Indian Ball Valve Market(USD Million)

The global market of ball valves is expected to grow at 5% p.a., correspondingly the growth in the

market for ball valves in India at approximately 6% per annum.

Oil & gas industry are the biggest consumer of ball valves in India in absolute terms similar to that of

global ball valves market.

However, pharmaceutical industry is expected to grow at a fast pace of 12% per annum.

Ball valves constitute one

of the major components

of valve industry.







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CONTENTS

13


14

GROWTH DRIVERS FOR THE INDUSTRY

Rapid increase in energy supply is increasing coal-fired electrical generating capacity at a rate in

excess of 10 percent per year. India and other developing Asian countries are increasingly turning to

coal for future electricity needs. A coal plant requires four times the investment in valves as does a

combined cycle gas turbine plant

Industrial expansion in Asia resulting in the need for cement, iron and steel, chemicals,

pharmaceuticals and other products in Asia is continuing to result in increases in valve revenues

Synthetic Oil Development resulting in the valve requirements in refineries and oil and gas

production are substantial, the valve requirements for synthetic oil are much greater.

Infrastructure Projects needs is also the biggest boost for Ball Valves in India







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CONTENTS

15


16

HOW CAN HELP? G

RO

WT

H

Analyzing the Current Ball Valve Industry in India.

Market Research for foraying into new Business Segments and Financial Management

Techno-Economic Analysis of New Business Segments & Leveraging Traditional approach with Modern Technology.

Competitive Positioning and Acquiring Larger Market Share and Brand Image Building


17

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