Market Research Report : E books market in india 2015 - Sample

E-books Market in India
February 2015

2E-BOOKS MARKET IN INDIA 2015.PPT
Executive Summary
Market
Overview
 E-book has been a known phenomenon in the global platform for quite some years and is
posting a healthy growth
 E-books market in India is still in its nascent stage but is slated to see good growth in the coming
1-2 years
 E-books can be categorized into academic, trade and graphic novels
Drivers &
Challenges
Competitive
Landscape
Drivers:
 Growth in education
 Increase in internet users
 Demographical alterations
 Increase of internet enabled
computing devices
 Improvised content
 Publishers save costs in this format
Challenges:
 Negative consumer perspective
related to cyber security & piracy
 High prices of e-book readers
 Majority focus on academic text
books
 Lack of touch and feel element
Major Players
Company A Company B Company C
Company D Company E Company F
Application approval from Apple
Retail chain offering e-book reading
application
Drive to convert books into digital formats
Foreign giant setting stores in India
Trends
Technological add-ons
Digital rights management
Sports category emerges as a thriving option

•Macro Economic Indicators
•Introduction
•Market Overview
•Benefits
•Formats & Software
•Drivers & Challenges
•Government Regulations
•Trends
•Competitive Landscape
•Strategic Recommendation
•Appendix

4
Economic Indicators (-/-)
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
11
12
13
14
15
INR tn
Q4
c4
d2
c2
b2
a2
Q1
d1
b4
a4
Q3
c3
b3
a3
Q2
c1
b1
a1
2013-142012-132011-122010-11
0.0
0.5
1.0
1.5
2.0
%
Oct 2013 - Nov 2013
t
Sep 2013 - Oct 2013
s
Aug 2013 - Sep 2013
r
Jul 2013 - Aug 2013
q
Jun 2013 - Jul 2013
p
E-BOOKS MARKET IN INDIA 2015.PPT

5
SAMPLE
Evolution of e-books
1991 20082007
• X
2012
• X
1995
• X
2001-
2006 2003
• X
• X
• X
X
X
X
• X

6
SAMPLE
Though nascent, the market is slated to usher in a positive
change in the coming 1-2 years
•Indian e-Book market is currently witnessing a positive growth and is expected to gain further momentum in the
next 2-3 years
 Basically, the huge presence of tech savvy youth and working class population is driving the demand for e-books in India
 Additionally, educational institutions in an attempt to bring about innovation are incorporating the use of e-books in the
curriculum
 By the end of 2013, India had an estimated population of close to x mn e-book readers in India as compared to y
mn as on Feb 2012
 Although, the market accounts for merely x% of the total publishing market in the nation, nevertheless the sheer
amount of the population is driving the market
E-books – Indian Market Overview
E-books – Market Segmentation (2013)E-books – Market Size & Growth
C
B
A
0
x4
2015e
x3
2014*
x2
2013
x1
INR bn
X
2018e
x6
2017e
x5
2016e
Y
X
Y
X
Note: Others include ‘Trade’ and ‘Graphic Novels’* Data corresponds to the month of Oct, 2014

7
SAMPLE
The comparative study throws light on the pros and cons of using e-books over print books
X
• X
• X
Advantages
Print Books E-books
XX
Disadvantages
X
• X
• X
Advantages
Disadvantages
Print Book v/s E-book

8
SAMPLE
•Under the agency pricing model, retailers act as agents and take a% while leave the remaining b% to the
publisher
•The comparative analysis shows that even though retail price of e-books cost lesser than their printed
counterparts, the payments made to different heads are also less which makes the end revenues generated by
the publisher is more than the physical books
Print Book v/s E-book
E-book
Print Book
Retail Price per
book
Paid to retailer
Royalty
payment to
author
INR X INR X
INR X
INR X
INR X INR X
INR X
INR X
The publisher
receives ~ INR X per
unit sold
The publisher
receives ~ INR X per
unit sold
Others
XX

9
SAMPLE
• X
• X
• X
• X
• X
• X
Format and Software XX
• X
• X
• X
E-book – Formats & Software (-/-)

10
SAMPLE
E-books will penetrate proportionately with the rise in
internet penetration and its users
Increase in internet users Impact
•Xx
•Xx
•Xx
•Xx
•Xx
•Xx
•xx
Total Internet Subscribers – India Number of Broadband Subscribers – India
F
E
D
C
B
A
0
mn
Apr - Jun
2014 e
x4
Jan - Mar
2014e
x3
Oct - Dec
2013 e
x2
Jul - Sep 2013
x1
A
0
C
D
B
y4
Jan - Mar
2014e
y3
Oct - Dec
2013 e
y2
Jul - Sep 2013
y1
mn
Apr - Jun
2014 e

11
SAMPLE
As Indians open up to newer innovations, e-books evolve as
an addition to online shopping list
Demographical alterations Impact
•Xx
•Xx
•Xx
•Xx
•Xx
•Xx
C
B
A
E
D
E
D
C
B
A
aa
C
B
A
0
X1
55+ years
X5
45-54 years
X4
35-44 years
X3
25-34 years
X2
15-24 years
bn minutes
Internet Users – Age-wise Distribution (2014) Average Time Spent on Internet – Age-wise

12
SAMPLE
High prices of e-book readers acts as serious impediments
for a rapid off-take of e-books
High prices of e-book readers Impact
• X
• X
• X
• X
• X
• X
• X
• X

13
SAMPLE
This bill details on the copyright mechanism especially when
digital copy gets imported
The Copyright (Amendment) Bill, 2010
• A
• B
• C
• D
• A
• B
• C
• X
• Y
• Z

14
SAMPLE
Approval from majors open gates for device manufacturers
to feature e-books on their devices
• Xx
• Xx
• Xx
• Xx
Application approval from Apple
•x
•x
•x
xx
xx
xx
xx
xx
xx
Features
T
R
E
N
D

15
SAMPLE
Trends reveal that foreign giants are setting up stores in the
country and introducing cheap product offerings
• Xx
• Xx
Point A
• Xx
• Xx
Point C
• Xx
• Xx
Point B
• Xx
• Xx
Point D
This initiative spells a positive trend as majors focus on this emerging market
Foreign giant setting stores in India
• xx
• xx

16
SAMPLE
Porter’s Five Forces Analysis
Competitive Rivalry
• X
Bargaining Power of Suppliers
• X
Bargaining Power of Buyers
• X
Threat of Substitutes
• X
Threat of New Entrants
• X
Impact
X
Impact
X
Impact
X
Impact
X
Impact
X

17
SAMPLEKey Ratios of Top 3 Companies – Operational Basis (FY 2013) (-/-)
Competitive Benchmarking (-/-)
-20
-10
0
10
20
Company B
x2x1
Company A
x2
x1
%
Company D
x2x1
Company C
x2x1
Operating Margin Net Margin
• XX
• XX
• XX

18
SAMPLE
Private: Foreign Company – Company A (-/-)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address XX
Tel No. XX
Website XX
Year of Incorporation XX
Category Products/Services
XX
Name Designation
XX XX
XX XX
XX XX
XX XX
Note: The list of products and services is not exhaustive
New Delhi
Head Office

19
SAMPLEName No. of Shares held
Cengage Learning Holdings BV 1,832,268
Cengage Learning Hong Kong
Ltd.
1
Total 1,832,269 100.00%
Foreign Holdings
Note: Shareholding pattern as on AGM dated 26th Sep 2014
Shareholders of the Company Ownership Structure

20
SAMPLE
Financial Snapshot Key Ratios
Financial Summary
• The company reported a total income of INR 345.3 mn in FY
2013, as compared to INR 292.9 mn in FY 2012
• The company incurred a net profit of INR 29.3 mn in FY 2013,
as compared to net profit of INR 26.8 mn in FY 2012
• The company registered an operating margin of 11.48% in FY
2013, as compared to 10.96% in FY 2012
Improved Decline
Particulars
y-o-y change
(2013-12)
2013 2012 2011
Profitability Ratios
Operating Margin 0.52 11.48% 10.96% 7.38%
Net Margin -0.66 8.47% 9.13% 8.70%
Profit Before Tax Margin -0.97 12.81% 13.78% 13.12%
Return on Equity -1.00 14.45% 15.45% 18.28%
Return on Capital Employed 1.05 19.59% 18.54% 15.50%
Return on Working Capital 0.30 22.65% 22.35% 21.64%
Return on Assets 2.88 11.88% 9.00% 9.02%
Return on Fixed Assets 160.88 742.32% 581.45% 283.37%
Cost Ratios
Operating costs (% of Sales) -0.36 88.37% 88.72% 92.17%
Administration costs (% of Sales) N.A. N.A. N.A. N.A.
Interest costs (% of Sales) N.A. N.A. N.A. N.A.
Liquidity Ratios
Current Ratio 31.12% 2.35 1.79 2.01
Cash Ratio -13.94% 0.50 0.59 0.41
Leverage Ratios
Debt to Equity Ratio N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover 23.73% 63.80 51.57 36.21
Asset Turnover 27.88% 1.02 0.80 1.15
Current Asset Turnover 27.68% 1.12 0.88 1.39
Working Capital Turnover -1.80% 1.95 1.98 2.77
Capital Employed Turnover 2.38% 1.68 1.64 1.98
30
20
10
0
400
300
200
100
0
29.3
345.3
2012
26.8
292.9
2011
26.8
307.6
INR mnINR mn
2013
Net Profit/LossTotal Income

21
SAMPLE
Business Highlights
Description News
Overview XX
E-books XX

22
SAMPLE
XX XX
XXXX
TO
WS
Strength Weakness
Opportunity Threat

23
SAMPLE
Strategic Recommendations (-/-)
Point A
•X
•X
•X
•X
•X
Point B
•X
•X
•X
•X
•X
•X

Thank you for the attention
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The E-books Market – India 2015 report is a part of Netscribes, Inc.’s Information Technology
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