industry overview product localisation importance of ... zutshi - samsug_181.pdf · product...
TRANSCRIPT
1
2
� Industry Overview
� CE Market Size & Growth
� Product Localisation
� Importance of Localized Manufacturing
3
4
5
Key highlights of this industry are:
• One of the fastest growing industry in India
• Technology driven
• Continuous innovation
• High involvement in R&D activities
• Advertising and brand building has a key role
• Demand is seasonal and cyclical
• Price and brand differentiation
• Supply and distribution network
• After sales service
Source: Samsung InternalSamsung Internal
6
7
Consumer
Electronics
8
9
� Industry Overview
� CE Market Size & Growth
� Product Localization
� Importance of Localized Manufacturing
10
• FPTV Market to rise from 3.7M units in ‘11 to 5.2M units in ‘12 (41% Growth)
• Household Penetration of FPTVs will increase from 4% in ‘11 to 6% in ‘12
FPTV Market SizeFPTV Market Size
[M Units]
75%
100%
79%
48%
41%
Household PenetrationHousehold Penetration[Penetration] [Households]
Source: Samsung InternalSource: Samsung Internal
11
20% 22% 24%27% 29%
32%
• Ref market estimated at 9.8 M units & expected to grow @ 12% in volume terms
• All India Penetration Rate : 20% in ’10 � 32% in ’15
‘09 ‘10 ’11 ‘12 ‘13
7.07.9
8.99.8
10.8
11%11%
12%12%FF
DC
[M Units]
22%
78%
21%
79%
22%
78%
22%
78%
22%
78%
‘10 ‘11 ’12 ‘13 ’14 ‘15
Industry Demand Penetration Rate
Source: Samsung InternalSource: Samsung Internal
REF Market SizeREF Market Size Household PenetrationHousehold Penetration
12
• India WM Market is valued at $1555 Mn with 16% CAGR . Volume estimated at 6.5Mn
Units (’15).
• All India WM Penetration Rate : ‘08 � 4% ,’15 � 12%.
v
Rs Bn
Low Penetration RateIndustry Size
2011 – 3.8 Mn Units
SA (63%) 2.4
TL (27%) 1.0
FL (10%) 0.4
Source: Samsung InternalSource: Samsung Internal
13
• MWO Industry to grow at 14% CAGR to reach a size of 1.8 M units in 2013
• Convection will become the mainstay of MWO Business
• Most sales from new users due to increase in penetration in top 50 and emerging
towns
1.0
1.28
1.46
1.6
1.8
20%
14%
10%
14%
[M U
nit
s]
Year Year
Segment Movement
Co
ntr
ibu
tio
n
Market Size
Source: Samsung InternalSource: Samsung Internal
14
152M 160M
5%
8%
25%
16%
7%
33%
6%
’11 Seg. Cont.13%
13%
22%
13%
6%
29%
5%
’12 Seg. Cont.
150%
75%
12%
8%
11%
• 160M market size is conservative estimates based on current macro conditions
however market can go up to 175-180M
Source: Samsung InternalSource: Samsung Internal
15
� Industry Overview
� CE Market Size & Growth
� Product Localization
� Importance of Localized Manufacturing
1616
1717
Product Industry * Samsung
CTV 70 % 80 %
Panel TV 13 % 15 %
Split AC 60 % 63 %
Ref 75 % 50 %
Washers 72 % 57 %
MWO 40 % 100 % Import
* Estimates
Comp1 Comp 2 Comp3 Comp4 Comp5 Comp6
CTV CRT Cabinet Speakers Remocon Semiconductor FBT / Tuner
Panel TV Panel Cabinet Stand SMPS Semiconductor Remocon
Split AC Compressor Condenser Motor Cross Fan Connecting Tube Remocon
REF Compressor PCM Rollbond Chemicals Resin Thermostat
WM Motor Timer PCM Gear Box Clutch Valve
MWO Cavity Magnetron Door Assembly Packing Material
1818
1919
• Cater to Component requirements of existing players
• Re emergence of Domestic players in a big way
• Entry of Private Labels by modern retailers like Croma & Big Bazaar
• Increasing focus of Japanese companies in the Indian market & local manufacturing
• Exports to International customers & benefit from Economies of scale
• Increase in average price levels for Chinese / Imported products
• Value economics using Contract manufacturing
• Opportunity & expertise for Forward integration!!
2020
THANK YOU