market research report : pumps market in india 2013

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Pumps Market India Pumps Market India April 2013

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For the complete report, get in touch with us at : [email protected] Indian pump industry caters to demand from diverse sectors. Irrigation requirement of the agricultural sector owing to unreliability of the monsoons is driving the growth of this market. The report begins with an overview of the major macro economic indicators which highlights the present economic scenario prevalent in India. It is followed by the introduction section which provides a segmentation of the pump industry into the two major types of pumps and their respective sub segments that find extensive application in the Indian market.

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Page 1: Market Research Report : Pumps market in india 2013

Pumps Market IndiaPumps Market – India 

April 2013

Page 2: Market Research Report : Pumps market in india 2013

Executive Summary

MarketPumps find extensive application in numerous key sectors of the economyPumps market in India is expected to witness robust growth driven by the agricultural sector owing to unpredictable monsoons  

Drivers & Challenges

Drivers•Expansion in Infrastructure

•Erratic Monsoon Climate

Fl t ti i G d W t L l

Challenges•Agricultural Power Subsidy 

•Consumer Outlook

Ri i C t f I tChallenges •Fluctuations in Ground Water Level 

•Rise in Population & Urbanization

•Healthy Economic Outlook

•Rise in Cost of Inputs 

TrendsSolar Powered Pump Sets

Market Consolidation

Technology and Material Advancements

Competition

Major Players

Company A Company B

Company C Company D

2

Company E Company F

PUMPS MARKET IN INDIA 2013.PPT

Page 3: Market Research Report : Pumps market in india 2013

•Macro Economic Indicators•Introduction•Market Overview•Market Overview•Pumps Market Sales Channel•Key Demand Sectors•Pumps Manufacturing Hubs•Key End User Hubs•Export ‐ Import•Export ‐ Import•Drivers and Challenges•Government Initiatives & Regulations•Trends•Competitive Landscape•Strategic Initiatives

3

Strategic Initiatives•Appendix

PUMPS MARKET IN INDIA 2013.PPT

Page 4: Market Research Report : Pumps market in india 2013

Macro Economic Indicators (1/3)

INR tn

14y4z4y3

x2x1

GDP at Factor Cost: X

13

12

11

k4z3

k3

x2y2

z2

k2

x1y1

z1

k1

10Q‐Q‐Q‐Q ‐

20‐‐20‐‐20‐‐20‐‐

Inflation Rate: Y

0 8

1.0 x3x1

%

0.2

0.4

0.6

0.8

x5x4x2

4

0.020‐‐20‐‐20‐‐20‐‐20‐‐

BEARINGS MARKET IN INDIA 2013.PPT

Page 5: Market Research Report : Pumps market in india 2013

Indian pumps industry is developing in a phased manner and caters to demand from diverse sectors 

Pumps Market Growth

150

INR bn

Z%

50

100

150x7x6x5x4x3

Z%

x2x1

Pumps Industry ‐ Replacement Market (20‐‐) Pumps Market – Segments (20‐‐)

020‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐

Pumps Industry  Replacement Market (20 )

BA

Pumps Market  Segments (20 )

X% A B

X%

Y%

5

Y%

PUMPS MARKET IN INDIA 2013.PPT

Page 6: Market Research Report : Pumps market in india 2013

SAMPLEKey Demand Sectors (1/9)SAMPLE A

X

250

GW

Power Generation Installed Capacity

•Point 1•Point 2

150

200

250

x5

x1

Point 2

Y

50

100

150

x64x3

Y

•Point 1

0F

x6

EB

x2

D

x4

A CZ

P i 1

6

•Point 1

PUMPS MARKET IN INDIA 2013.PPT

Page 7: Market Research Report : Pumps market in india 2013

Pumps manufactured in the domestic market are exported to more than x countries across the globe

Exports 

80%

100%X2

A1

X1

100%A4

X4

A3

X3

A2

0%

20%

40%

60%

80%

Z2

Y2

Z1

Y1

X1

z4

Y4

Z3

Y3

0%20‐‐ 20‐‐20‐‐20‐‐

CBAImports 

40%

60%

80%

100%X2

B2

A2

X1

B1

A1

X3

B4

A4

X4100%

B3

A3

0%

20%

20‐‐20‐‐

C1 C2 C4

20‐‐20‐‐

C3

7PUMPS MARKET IN INDIA 2013.PPT

Page 8: Market Research Report : Pumps market in india 2013

Drivers & Challenges – Summary 

Drivers

f

Challenges

Expansion in Infrastructure

Erratic Monsoon Climate

Agricultural Power Subsidy 

Consumer Outlook

Fluctuations in Ground Water Level 

Rise in Population & Urbanization

Rise in Cost of Inputs 

Healthy Economic Outlook

8PUMPS MARKET IN INDIA 2013.PPT

Page 9: Market Research Report : Pumps market in india 2013

Focus on infrastructure expansion will boost the requirement of pumps in the Indian market

ImpactExpansion in Infrastructure

• Finding 1

• Finding 2• Sub‐finding 1

• Finding 3

Investment Share in Infrastructure

40 000

50,000

60,000

INR bn

Z%

A2

x2

A

10,000

20,000

30,000

40,000

x1

B1

A1

A2

B2

B

9

0B1

YX

PUMPS MARKET IN INDIA 2013.PPT

Page 10: Market Research Report : Pumps market in india 2013

Competitive Benchmarking (1/5)

Public Trading Comparables (FY 20‐‐) 

Company 1 Company 2 Company 3 Company 4

Market Capitalization (INR mn)

‐ ‐ ‐ ‐

Share Price (INR) ‐ ‐ ‐ ‐

EV/EBITDA (x) ‐ ‐ ‐ ‐

/EV/Revenue (x) ‐ ‐ ‐ ‐

PE Ratio ‐ ‐ ‐ ‐

10BEARINGS MARKET IN INDIA 2013.PPT

Page 11: Market Research Report : Pumps market in india 2013

Public: Domestic Company – Company A (1/4)

Company Information Offices and Centres – India 

Corporate Address Address

Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Tel No. 91 

Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Website website

Year of Incorporation 19‐‐

Products and Services

Ticker Symbol ‐‐‐‐‐‐

Stock Exchange ‐‐‐

Key People

Products and Services

Category Products/Services

Segment Product 1, product 2, product N D i ti

Head Office

3,………………….

Others Product 1, product 2, product 3………

Name Designation

Person 1 Designation

Person 2 Designation

Person 3 Designation

11

, p , pPerson 4 Designation

BEARINGS MARKET IN INDIA 2013.PPT

Page 12: Market Research Report : Pumps market in india 2013

i i l S h K i

Public: Domestic Company – Company A (2/4)

Financial Snapshot Key Ratios

Profit / Loss

Total Income

10,000 600

ProfitINR mn 

Total IncomeINR mn

y3y4

Particulars y‐o‐y change 

(20‐‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐

Profitability RatiosOperating Margin 0.43 10.93% 10.50% 0.01% 12.20%

0

5,000

0

200

400x4

20‐‐

y3

20‐‐

x3

20‐‐ 20‐‐

y1

x1

y2

x2

Net Margin ‐0.09 1.62% 1.71% 0.00% 1.43%

Profit Before Tax Margin ‐0.46 2.74% 3.20% 0.00% 2.64%

Return on Equity ‐2.05 4.35% 6.40% 9.34% 5.74%

Return on Capital Employed ‐4.30 21.33% 25.63% 18.38% 28.49%

Return on Working Capital ‐60.80 40.23% 101.03% 33.29% 67.80%

Return on Assets ‐1.26 5.99% 7.25% 7.88% 10.78%

Financial Summary 

• The company earned a net profit of INR  x  mn in FY 20‐‐, as compared to net profit of INR  y mn in FY 20‐‐

• The company reported total Income of  INR x mn in FY 20‐‐registering an increase of x% over FY 20

Return on Fixed Assets 6.61 60.90% 54.28% 57.63% 78.70%

Cost RatiosOperating costs (% of Sales) ‐0.45 89.01% 89.45% 88.00% 87.69%

Administration costs (% of Sales)

4.04 29.54% 25.50% 28.22% 21.61%

Interest costs (% of Sales) ‐0 44 ‐5 93% ‐5 49% ‐6 50% ‐4 71%registering an increase of x% over FY 20‐‐

• The company earned an operating margin of x% in FY 20‐‐,  a decrease of y percentage points over FY 20‐‐

• The company reported debt to equity ratio of x in FY 20‐‐, an increase of y% over FY 20‐‐

Interest costs (% of Sales) 0.44 5.93% 5.49% 6.50% 4.71%

Liquidity RatiosCurrent Ratio 9.73% 1.21 1.10 1.41 1.26

Cash Ratio 247.59% 0.04 0.01 0.09 0.10

Leverage RatiosDebt to Equity Ratio ‐3.60% 1.38 1.43 1.54 1.37

Financial Summary 

Indicators Value Market Capitalization (INR) ‐

Total Enterprise Value (INR) ‐

Debt to Capital Ratio ‐1.51% 0.58 0.59 0.61 0.58

Interest Coverage Ratio ‐3.55% ‐1.85 ‐1.92 ‐1.85 ‐2.61

Efficiency RatiosFixed Asset Turnover 7.63% 5.54 5.15 4.81 6.39

Asset Turnover ‐20.73% 0.55 0.69 0.66 0.88

Current Asset Turnover ‐27 96% 0 63 0 87 0 81 1 12

12

EPS (INR) ‐PE Ratio (Absolute) ‐

BEARINGS MARKET IN INDIA 2013.PPT

Current Asset Turnover 27.96% 0.63 0.87 0.81 1.12

Working Capital Turnover ‐61.80% 3.66 9.58 2.78 5.51

Capital Employed Turnover ‐26.75% 1.12 1.53 1.15 1.68Improved Decline

Page 13: Market Research Report : Pumps market in india 2013

Public: Domestic Company – Company A (3/4)

Key Business Segments Key Geographic Segments

100%

X

100%

Country 1

0%

50% 100%

0%

50% 100%

Country 1  is the only geographic segment in which 

the company operates

Company operates in X Segment

Business Highlights

D i i N

0%20‐‐

0%20‐‐

Description  News

Overview• Company A  is one of the major manufactures of X • Company entered into a collaboration with Company B and Company C and manufactured indigenously produced Y

Manufacturing Facilities

•Manufacturing facilities of the company include X equipped with x1 ,x2 , x3 ,x4 etc, x5 equipped with x6 , x7 , x8 , x9, x10 etc and x11 equipped with x12 facility upto fabricating larger frames upto y Tonnes

• It also has y1, y2, y3, y4 units along with their y5 facilities

13PUMPS MARKET IN INDIA 2013.PPT

Page 14: Market Research Report : Pumps market in india 2013

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PUMPS MARKET IN INDIA 2013.PPT