Market Research Report : Construction Equipment Market in India 2012

Insert Cover Image using Slide Master View
Do not distort

Construction Equipment Market – India
December 2012

Executive Summary

 Huge investment in infrastructure construction presents a major growth opportunity to the
Market
Indian construction equipment market

Drivers Challenges
 Robust Economic Development  Land Acquisition Problems
 Growth in Infrastructure  Project Bottlenecks
Drivers &  Expansion in Mining Sector  Crude Oil Price Hike
Challenges  Rising Steel Prices
 Growing presence of OEM in India
 FDI Inflow in Construction  Lack of Skilled Labour

 Manufacturing Sector Policies
Government
Initiatives  Upcoming Regulations
 Required Initiatives

 Focus on Technology  Decline in Import Share
Trends  Aggressive Expansion Plans  Growth in After Sales Service
 Technical Collaborations  Environment Concerns

Major Players
Company 1 Company 2 Company 3
Competition
Company 4 Company 5 Company 6

CONSTRUCTION EQUIPMENT MARKET IN INDIA 2012.PPT 2

•Market Overview
 Global
 India
•Construction Equipment Segments
•Sector wise Demand
•Drivers and Challenges
•Government Initiatives
•Trends
•Opportunity Areas
•Recent Developments
•Competition
•Strategic Recommendations
•Appendix


Focus on infrastructure development offers strong growth
potential to the Indian construction equipment market
Construction Equipment Market India – Overview
• Indian construction equipment market is one of the fastest growing markets in the world
• Construction constitutes the second largest sector in the Indian economy
• Low infrastructure and consequently heavy investments in infrastructure in the 12th five year plan presents
tremendous opportunity for growth to the Indian market
• Indian market is characterized by the dominance of foreign players alone or in partnership with Indian manufacturers
of construction equipments

Construction Equipment Market
INR bn
500 x7

400 Z% x6
x5
300 x4
x3
200 x2
x1
100

0
20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐e


Earth Moving Equipment – Equipment 1

Market Overview

Major Players

Company 1
• Point 1
• Point 2 Company 2

Company 3

Equipment 1 Sales Equipment 1 – Market Share
units
Company 1 Company 2 Others
40,000 x7
Z% x6 X%
30,000 x5
x4
20,000 x3
x2
x1 Y%
10,000
Z%
0
20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐e


Rental Equipment Market

•Market Overview
•Penetration
•Drivers
•Challenges
•Trends
•Scenario


Capital constraints and strict project timelines are
promoting the demand for rental equipments
Equipment Rental Market ‐ Overview Equipment Rental Market Growth
• Rental equipment market in India is still at its nascent INR bn
stage 150
• Equipment rental market is expected to reach INR x x7
Y% x6
bn in 20‐‐ with a CAGR of x% over 20‐‐‐ 100 x5
• Rental market in India is highly fragmented with the x4
x3
organised sector accounting for x% of the market 50 x2
• Share of top y companies added to a bare minimum x1
of z units in 20‐‐ 0
20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐e
Equipment Rental Market Share – (20‐‐) Rental Equipment Market Segments (20‐‐)
X Y A B

y%
y%

X%
x%


Equipment Financing Market

•Market Overview
•Major Features
•Major Finance Providers
•Finance Types
•Drivers
•Challenges
•Role of NBFCs


Rise in construction activities presents a huge opportunity
for growth to the equipment financing market
Equipment Financing Market ‐ Overview Equipment Financing – Market Share
• Construction equipment financing market in India is Company 1 Company 5 Company 9
still at its nascent stage Company 2 Company 6 Company 10

• Equipment financing market has a great growth Company 3 Company 7 Others

potential owing to high construction activities Company 4 Company 8
%
leading to high demand for equipments 100

90
a1 a2
Equipment Financing Market Growth 80

INR bn 70

700 60 b1 b2
x6
600 Z% x5 50 c1 c2
500 x4 d1 d2
40
x3 e2
400 e1
x2 30 f2
300 x1 f1 g2
g1 h2
20 h1 i1 i2
200 j2
j1
100 10 k1 k2
0 0
20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐e 20‐‐ 20‐‐


Sector Wise Demand

Infrastructure

Roads Railway Ports

Urban
Airports Irrigation Development

Power Transmission Storage Telecom


Construction Equipment – Infrastructure Demand
Roads ‐ Overview Construction Equipment –Share of Expenditure
• Finding 1
• Finding 2
• Finding 3
• Finding 4 Construction
Equipment x%‐y%
Costs Share

X Status Planned Investment in Roads
0 10,000 20,000 30,000 40,000 50,000
kms X Y Z
INR bn
4,000
Q
3,000 R
x1 x2 x3 X x2
x3
2,000
P y2
1,000 x1 y3
y1 z2
z1 z3
A B C 0
A B C


Drivers & Challenges – Summary

Challenges

Land Acquisition Problems
Drivers
Project Bottlenecks
Robust Economic Development
Crude Oil Price Hike

Growth in Infrastructure Rising Steel Prices

Expansion in Mining Sector Lack of Skilled Labour

Growing Presence of OEM in India

FDI Inflow in Construction


Foreign direct investment in construction industry and
construction equipments will ensure market growth
FDI Inflow in Construction Industry Impact

Construction Activities‐ FDI
FDI in Construction Activities
INR bn
• Finding 1 Z%
150 x1
• Finding 2 x3
• Finding 3 100
x2
50

0
220‐‐ 20‐‐ 20‐‐

Earthmoving Equipments ‐ FDI

FDI in Earthmoving Equipments Z%
INR bn
x3
8 x2
x1
• Finding 1 6
• Finding 2 4
• Finding 3 2

0
20‐‐ 20‐‐ 20‐‐


Lack of some key initiatives are hampering the development
of the Indian construction equipment market

Initiative 1

Initiative 5
Initiative 2
Required
Initiatives

Initiative 4
Initiative 3


Trends – Summary

Focus on Technology

Aggressive Expansion Plans

Technical Collaborations
`
Key Trends

Decline in Import Share

Growth in After Sales Service

Environment Concerns


Players in the market are focusing on application of latest
technologies
Focus on Technology (1/2)
• Finding 1
Automation of
• Finding 2 construction
equipment gaining
popularity

Technology Launches

Technology 1 Technology 2

• Point 1 • Point 1


Opportunity Areas

State 1 State 2 State 3 State 4

Indian states are focusing on infrastructure development as the primary vehicle to drive economic growth
Emphasis on construction of infrastructure facilities provides a huge scope for the development of
construction equipment market in India


State A – Opportunity Areas (2/3)
State A – Infrastructure Investment

State A ‐ Real GDP Growth Rate
%
State A Country 1
15
x1 x4
y1 x3
10 y3 y4
x2 y2
5
• Point 1
0 • Point 2
20‐‐ 20‐‐ 20‐‐ 20‐‐
• Point 3
Investment in Infrastructure (20‐‐‐‐)
• Point 4
x7 • Point 5
x6 A • Point 6
x5 B
x1 C
x4
D
E
x3 F
G

x2


Public: Domestic Company – Company 1 (1/3)
Company Information Offices and Centres – India
Address
Corporate Address

Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website website
Year of Incorporation 19‐‐
Ticker Symbol ‐‐‐‐‐‐
Stock Exchange ‐‐‐

Products and Services
Head Office
Category Products/Services
Key People
Segment Product 1, product 2, product
3,…………………. Name Designation
Person 1 Designation

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


Financial Snapshot Key Ratios
y‐o‐y change
Particulars 20‐‐ 20‐‐ 20‐‐ 20‐‐
Total Income Profit (20‐‐‐‐)
Total Income
INR mn INR mn Profitability Ratios
Profit / Loss y4
10,000 600 Operating Margin ‐ ‐ ‐ ‐ ‐‐
y3 Net Margin ‐ ‐ ‐ ‐ ‐
y1
y2 400 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐
5,000 x4
x3 200 Return on Equity ‐ ‐ ‐ ‐ ‐
x1 x2 Return on Capital Employed ‐ ‐ ‐ ‐ ‐
0 0 Return on Working Capital ‐ ‐ ‐ ‐ ‐
2009 2010 2011 2012 Return on Assets ‐ ‐ ‐ ‐ ‐

Financial Summary Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost Ratios
• The company earned a net profit of INR  283.3  mn in FY 2012, as Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
compared to net profit of INR  411.3  mn in FY 2011 Administration costs (% of
‐ ‐ ‐ ‐ ‐
• The company reported total Income of  INR 8,618.3 mn in FY 2012 Sales)
registering an increase of 15.28% over FY 2011 Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Liquidity Ratios
• The company earned an operating margin of 6.09% in FY 2012,  a
Current Ratio ‐ ‐ ‐ ‐ ‐
decrease of 0.73 percentage points over FY 2011
Cash Ratio ‐ ‐ ‐ ‐ ‐
• The company reported debt to equity ratio of 0.92 in FY 2012, an Leverage Ratios
increase of 1.30% over FY 2011 Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐
Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐
Financial Summary
Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Indicators Value Efficiency Ratios
Market Capitalization (INR) ‐ Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐
Asset Turnover ‐ ‐ ‐ ‐ ‐
Total Enterprise Value (INR) ‐ Current Asset Turnover ‐ ‐ ‐ ‐ ‐
EPS (INR) ‐ Working Capital Turnover ‐ ‐ ‐ ‐ ‐
PE Ratio (Absolute) ‐ Capital Employed Turnover ‐ ‐ ‐ ‐ ‐


Key Business Segments Key Geographic Segments

A B C D Country 1
x
100%
X1 X2 X3 X4
100%
Country 1 is the only
x2 x3 x4 50% geographic segment of the
50% x1
company
y2 y3 y4
z1
0% k1 y1 z2
k2
z3
k3
z4
k4
0%
20-- 20-- 20-- 20-- 20‐‐

Business Highlights
Description News
• Company 1 is one of the leading players in the field of x and construction equipment
Overview manufacturing
• Company has a market share of around y% in the A segment
• Effective pre‐sales and after‐sales service is provided by the company through a wide
network of dealers and area offices in z locations and has x area or regional offices across
the country
Network and Distribution
• Dealerships have also been established in foreign nations such as Country 1, Country 2,
Country 3, Country 4, Country 5 and Country 6 with a view to provide support to the
construction equipments of the company deployed in those regions


Thank you for the attention
Construction Equipment Market – India 2012 report is a part of Netscribes, Inc.’s
Manufacturing Industry Series.
For any queries or customized research requirements, contact us at:
Phone: +91 33 4027 6214/6215
E‐Mail: info@netscribes.com

Follow us on:

About Netscribes, Inc.
Netscribes, Inc. is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of
investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its
core lies a true value proposition that draws upon a vast knowledge base. Netscribes Inc. is a one‐stop shop designed to fulfil clients’
profitability and growth objectives.

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is
not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior
permission is required for guidelines on reproduction.


Market Research Report : Construction Equipment Market in India 2012

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Market Research Report : Construction Equipment Market in India 2012

Similar to Market Research Report : Construction Equipment Market in India 2012 (20)

More from Netscribes, Inc.

More from Netscribes, Inc. (20)

Recently uploaded

Recently uploaded (20)

Market Research Report : Construction Equipment Market in India 2012