Market Research Report :Electric Wires and Cable Market in India 2012


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Electrical wires and cables market is growing at a steady pace as the government is investing heavily in infrastructure development. Increase in capacity of the existing power plants and commissioning of the new ones have resulted in higher demand for electric wires and cables. Due to the roll out of 3G and broadband, demand for electric wires and cables is likely to increase in the future.

The report provides a brief introduction to the cables and wires market. It shows the distribution of global cable and wire industry. It also provides the classification and a comparison between Polyethylene (PE) and Poly Vinyl Chloride (PVC) cables on various parameters. The market overview section gives a snapshot of the Indian electrical equipment industry. It also highlights the market size, growth and the segmentation. Porter’s five forces analysis helps to understand the prevailing structure of the electric wires and cable market. The import-export section highlights the amount of import and export with respect to electric wires and cables over last four years and the major countries of import and export.

The drivers include the huge investments made by various private companies in power sector as well as the increasing budget allocation by the government on the power sector. Power sector is the largest consumer of cables in India. Another important driver is the rollout of 3G and broadband on a pan-India basis which will boost the market as demand will increase as players look to enhance broadband penetration levels. Government impetus in refineries, power and fertilizers will offer a boost to the cable industry as almost all manufacturing companies need cables. Robust industrialization and growing urbanization are the other important drivers identified. Auto sector and railways are the other important sectors consuming wires and cables on a large scale. Additionally, growth will be fuelled by urbanization as cables and wires will be required in buildings and offices. Challenges identified include increasing price rise and competition from Chinese imports. As the price of copper continues to increase, profit margins are squeezed and they become uncompetitive in the international market. The next section deals with government initiatives where the credit lending subsidiary scheme is explained. It also highlights the rules and regulations the wire manufacturers need to adhere.

The competition section offers a bubble chart where the relative positions of the players are depicted with respect to their revenue, net profit and market capitalization. It also includes profiles of the major players in the market along with their financials. Key ratios and list of important contact persons are also listed. Key geographic areas and major business segments are also included. Key developments that have taken place in the market have been identified. The last section deals with the

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Market Research Report :Electric Wires and Cable Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortElectric Wires and Cable Market – India  Electric Wires and Cable Market IndiaJanuary 2012
  2. 2. Executive Summary  Due to increase spending in infrastructure electrical equipment market is on a upswing Market   Market is likely to reach INR A  bn by 20‐‐, growing at a rate of t% Overview  D % of the market is controlled by the organized sector Drivers Challenges  Large investments in power sector  Increase in price of raw materials Drivers &   Large Investments in telecom sector  Increase in competition  Robust Industrialization b d lChallenges  Growing urbanization Export  Country 1 and Country 2 are the top exporters for Indian cables Country 1 and Country 2 are the top exporters for Indian cables  Huge P market doesn’t allow M manufacturers to export to foreign markets EXIM Import  India mainly imports T1 kV cables  India imports cables mainly from Country 3 and Country 4 Major Players in the MarketCompetition Company 1 Compan 1 Company  2 Compan 2 Company  3 Compan 3 Company  4 Compan 4 ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview M k O i•Export‐Import•Drivers & Challenges•Government Initiatives Go ernment Initiati es•Competition•Miscellaneous•Strategic Recommendations•Strategic Recommendations ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 3
  4. 4. Asian countries will fuel the demand for wires and cables in future as infrastructure gets priorityIntroduction  Cable companies : Distribution• Wire is a single conductor and cable is a group of  Region 1 Region 2 Region 3 Others two or more insulated conductors a%• Globally, it is estimated that there are A cable  China accounts   companies b% x1th of the • Worldwide demand for cables are stimulated by the  consumption of  electrification programs  or need for replacement of  Asia and x2th  d% c% the existing  electrical system the existing electrical system globally• Cables are made of Polyethylene (PE) and poly vinyl  chloride (PVC) Specifications PE  PVC House Wiring  ( upto B V) House Wiring ( upto B V) Temperature Range ( C)  Temperature Range (°C) A1  to B1  A1 to B1 A2 to B2 A2 to B2 Cold Bend  Excellent  Good Conductor  Copper  Copper Low Tension (C kV to D kV) cation Moisture Resistance  Excellent  GoodClassific Insulation Resistance (Meg‐Ohms/1000 )  Insulation Resistance (Meg Ohms/1000) ABC XYZ High Tension ( E to F kV) Chemical Resistance  Excellent  Good Abrasion Resistance  Excellent  Good Cut‐Through Resistance  Excellent  Good Extra High Voltage (Above G kV) Extra High Voltage (Above G kV) Elongation Resistance  Elongation Resistance Excellent  Excellent Good Rodent Resistance  Poor  Poor ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 4
  5. 5. Increased focus on infrastructure will create domestic demand for electric wires & cables resulting in less exportsCables  – Exports  Exports – Value • India hasn’t been a major exporter of cables because  of the huge requirement for D consumption B 25 D• Country 1 has been always a major exporter of cables  20 A C to all major countries in the world 15• M 1 are exported in bulk from India to countries like  10 Country 1 and Country 2 and other countries in  y y 5 Region R 0 20‐‐‐‐‐ 20‐‐‐‐ 20‐‐‐‐‐ 20‐‐‐‐‐Segmentation (20‐‐‐‐) Segmentation (20‐‐‐‐‐) a Country 1 b Country 1 Country 2 Country 2 Country 3 Country 3 c Country 4 c Country 4 a Country 5 a Country 5 d d Country 6 e Country 6 e f f ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 5
  6. 6. Drivers & Challenges – Summary  Drivers Challenges Large investments in power sector Increase in price of raw materials Large investments in telecom sector Increase in competition Robust industrialization Growing urbanization ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 6
  7. 7. Public : Domestic Company – Company 1Company Information Offices and Centres – India  Block ABCCorporate Address City XYZTel No. 123456Fax No. 1234567Website http://www.abc123com/ p // abc 3co /Year of Incorporation 20‐‐ City AProducts and ServicesProducts and Services Category Products/ServicesProduct 1 P1,p2,p3 Key People Name N Designation D i ti ABC abc XYZ xyz MNO mno ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 7
  8. 8. Public: Domestic Company – Company 1Financial Snapshot i i lS h Key Ratios K i y‐o‐y change  Particulars  20‐‐ 20‐‐ 20‐‐ 20‐‐ Revenue Net Income (20‐‐‐‐‐) Profitability Ratios 6 x4 0.15 Operating Margin a1 a a2 a3 a4 x3 Net Margin b1 b b2 b3 b4 4 x1 x2 0.10 Profit Before Tax Margin c1 c c2 c3 c4 2 0.05 Return on Equity d1 d d2 d3 d4 Return on Capital Employed e1 e e2 e3 e4 0 0.00 Return on Working Capital f1 f f2 f3 f4 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets g1 g g2 g3 g4Financial Summary  Return on Fixed Assets h1 h h2 h3 h4 Cost Ratios• The company incurred a net profit of INR  A mn in FY 20‐‐, as  Operating costs (% of Sales) i1 i i2 i3 i4 compared to net profit  of INR B mn in FY 20‐‐ Administration costs (% of  j1 j j2 j3 j4• The company reported total Income of  INR X mn in FY 20‐‐,  Sales) registering an increase  of  r % over FY 20‐‐ registering an increase of r % over FY 20 Interest costs (% of Sales) Interest costs (% of Sales) k1 k k2 k3 k4• The company earned an operating margin of  d1  % in FY 20‐‐ an  Liquidity Ratios decrease of  k  %  points over FY 20‐‐ Current Ratio l1 l l2 l3 l4 Cash Ratio m1 m m2 m3 m4• The company reported debt to equity ratio of  g  in FY 20‐‐, an  Leverage Ratios increase of r % over FY 20‐‐ Debt to Equity Ratio n1 n n2 n3 n4Financial Summary  Debt to Capital Ratio 01 o o2 o3 o4 Interest Coverage Ratio p1 p p2 p3 p4 Indicators Value (DDD/MMM/YYYY) Efficiency RatiosMarket Capitalization (INR) a Fixed Asset Turnover q1 q q2 q3 q4Total Enterprise Value (INR) b Asset Turnover r1 r r2 r3 r4EPS (INR)EPS (INR) Current Asset Turnover Current Asset Turnover s1 s s2 s3 s4 c Working Capital Turnover t1 t t2 t3 t4PE Ratio (Absolute) d Capital Employed Turnover u1 u u2 u3 u4 Improved Decline ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 8
  9. 9. Public: Domestic Company – Company 1Key Business Segments  SAMPLE  Key Geographic Segments  Enamelled Wire and Strips India 6,000 6,000 6 000 c1 d b1 c 4,000 4,000 b a1 a 2,000 2,000 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Key Recent Developments Description  NewsOverview • It sells wires under the brand name of ‘abg’ & ‘def’Production facilities • In India the company has k manufacturing hubs and  j marketing offices Shareholding pattern • Promoters of the company hold j % of the share while k % is held by general publicClients • Clients are spread across ghj countries spanning across t continentsInvestments • The company wants to invest INR K mn in a company through a  joint venture in Country 2  producing product a and product b producing product a and product b • So far the company invested INR 0.C mn in company A in country A ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 9
  10. 10. Public : Domestic Company – Company 1Business Highlights Description  NewsOverview • The company is a part of Group 123, which is a subsidiary of Company 123 • Strategic partners of Company 1 include Company 2 and company 3New business • Operates a1b1 screens across t cities all over India  Pl Plans to add another a2b2 screens from 20‐‐‐‐‐ dd h 2b2 f 20 • Occupies abc % markets share in out of home advertising • It’s clients are from various sectors including sector a, sector b etc.Share Holding pattern • Some of their clients are company A, company b etc ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 10
  11. 11. Thank you for the attentionThe Electrical Wires & Cables Market‐ India report is part of Manufacturing Series. For more detailed information or customized research requirements please contact:Gaurav KumarPhone: +91 33 4064 6214E‐Mail: gaurav.kumar@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness 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 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 the preparation, Research on India, Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on IndiaNetscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. ELECTRIC WIRE AND CABLE MARKET IN INDIA 2012.PPT 11