Market Research Report : Lead acid battery market in india 2014 - Sample

Insert Cover Image using Slide Master View
Do not distort
Lead Acid Battery Market – India
December 2014

2LEAD-ACID BATTERY MARKET IN INDIA 2014.PPT
Executive Summary
Market
Drivers &
Challenges
Competitive
Landscape
 Lead-acid battery market in India was pegged at INR x bn in 20-- and is expected to grow at a
CAGR of y% till 20--
 There are two types of batteries available in the market, automotive batteries and industrial
batteries, with the former having a significantly higher market share
Drivers:
 Growing Automotive Industry
 Increasing Demand for Power Backup
 Booming Renewable Energy Sector
 Recycling Efficiency
 Lucrative Replacement Market
Challenges:
 Polluting and Toxic Nature of Lead
 Threat From Other Types Of Batteries
 Volatility in Lead Prices
 Large Unorganized Segment
 Batteries (Management and Handling) Rules, 2001
 Customs clearance of imports of new lead acid batteries
 Responsibilities of dealer
 Responsibilities of manufacturer, importer, assembler and
re-conditioner
Government
Regulation
Major Public Players Major Private Players
Company A Company C Company E
Company B Company D Company F
 Procedure for registration/renewal of registration
of recyclers
 Responsibilities of recycler
 Responsibilities of auctioneer
 Responsibilities of consumer or bulk consumer

•Macro Economic Indicators
•Introduction
•Market Overview
•EXIM
•Drivers & Challenges
•Government Regulation
•Competitive Landscape
•Strategic Recommendations
•Appendix

4
Macroeconomic Indicators (1/3)
12
13
14
15
16
a4
Q3
c3
b3
Q2
a3
Q4
c4
b4
INR tr
c2
b2
a2
Q1
d1
c1
b1
a1
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
2013-142012-132011-12 2014-15
-2
-1
0
1
2
t
s
Oct 2013 - Nov 2013
q
Aug 2013 - Sep 2013Jul 2013 - Aug 2013
r
Sep 2013 - Oct 2013
p
%
Nov 2013 - Dec 2013
LEAD-ACID BATTERY MARKET IN INDIA 2014.PPT

5
SAMPLE
Modern lead-acid batteries are made up of four basic
components
• XX
Factor 1
• XX
Factor 2
• XX
Factor 3
• XX
Factor 4
Lead-Acid Battery Components

6
SAMPLE
True deep cycle dry cell lead-acid batteries come in three
main construction types
• XX
• XX
• XX
• XX
Type 1
• XX
• XX
• XX
• XX
Type 2
Types of Dry Cell Batteries

7
SAMPLE
Lead-acid battery market in India is progressing at a steady
rate due to growing demand across sectors
Market Overview – Lead-Acid Batteries Market Size and Growth (Value – Wise)
• Lead-acid battery market in India has been exhibiting
steady growth rates for the past few years
• Market comprises two major segments, automotive
batteries and industrial batteries
 Automotive batteries constitute a larger share of the
overall market
 However, industrial batteries which are currently exhibiting
a better growth rate than automotive are expected to
narrow the gap within a few years
• Indian market is duopolistic in nature with the top 2
players, Exide Industries Ltd. and Amara Raja
Batteries Ltd., controlling x% of the organized market
 Industry enjoys strong pricing power due to its inherent
duopolistic nature
 Passenger vehicle space is dominated by Exide and Amara
Raja due to their strong tie-ups with recognized
international players
 Unorganized players dominate the lower end of the
replacement market (commercial vehicles and tractors)
due to the price sensitive nature of the segment
Market Segmentation (Value – Wise)
D
C
B
A
0
X
2018e
x5
2017e
x4
2016e
x3
2015e
x2
2014
x1
INR bn
x
y
BA
2014
x
y
2018e

8
SAMPLE
Industrial batteries are exhibiting a higher growth rate than
automotive batteries
Market Overview – Automotive Batteries Automotive Batteries (Value – Wise)
• Automotive battery market has been growing owing
to the high demand for automobiles and increasing
vehicle production in the country
• Branded batteries comprise ~x% of the automotive
battery market with the rest being unbranded
batteries
• Exide is the clear leader in this space, followed by
Amara Raja
Industrial Batteries (Value – Wise)
D
D
C
B
A
0
INR bn
X
2018e
x5
2017e
x4
2016e
x3
2015e
x2
2014
x1
Market Overview – Industrial Batteries
D
C
B
A
0
INR bn
y5
2017e
y4
2016e
y3
2015e
Y
2018e
y2
2014
y1
• Growth of industrial batteries is being driven by the
increasing demand for inverters and UPS due to the
shortage in power supply
• South India has witnessed the strongest growth for
these batteries due to the high demand for inverters
in this region
• Although demand from the telecom space remained
flat in the previous year, increasing demand for UPS
has helped this segment grow steadily

9
SAMPLE
READY TO EAT MARKET IN INDIA 2014.PPT
Lead Acid Battery – Import
Lead Acid Battery Import (850710)
Lead Acid Battery Import (85072000)
D
C
B
A
0
C
B
A
0
‘000 KgINR mn
2015
(Apr-Aug)
x4
y4
2014
x3
y3
2013
x2
y2
2012
x1
y1
ValueVolume
x6
x5
x4
x3 x2
x1
Others
JAPAN
THAILAND
GERMANY
CHINA P RP
BANGLADESH PR
x8
x7
x5
x3
x2
x1
Others
GERMANY
SRI LANKA DSR
MALAYSIA
VIETNAM SOC REP
CHINA P RP
Note: HS Code - 850710 (Lead acid accumulators of a kind used for starting piston engines); HS Code - 85072000 (Other lead-acid accumulators)
D
C
B
A
0
D
C
B
A
0
‘000 KgINR mn
2015
(Apr-Aug)
x4
y4
2014
x3
y3
2013
x2
y2
2012
x1
y1
ValueVolume
Major Importing Nations – Value Wise
Major Importing Nations – Value Wise
2014
2014

10
SAMPLE
Rise in Telecom Towers
• Rapidly growing telecom sector is one of the largest
customer segments and after the 3-G spectrum auction,
telecom towers have increased considerably
• Tower industry witnessed growth rate of beyond x% for
the five years post 2006, expanding the telecom tower
base to over 354,000 towers by the end of 20--
• Network management facilities and significant network
expansion will drive demand for backup power
Demand from Telecom Towers
Battery market will profit considerably as various sectors
where…
Increasing Demand for Power Backup (2/3)
Private Hospital Market
• Need for power backup in the healthcare market is
absolutely important
• Be it a storm or a general blackout, people need to be
assured that the hospital will be able to sustain power
and derive it from an alternate source
• Private hospitals have been growing at a phenomenal
rate and the demand for power backup has kept
increasing
Demand from Hospitals
400
300
200
100
0
‘000 Nos. X
2014
x4
2013
x3
2011
x2
2009
x1
0
2
4
6 Y
2018e
y7
2017e
y6
2016e
y5
2015e
y1
y4
2014e
y3
2013e
y2
2012
INR tn

11
SAMPLE
Impact
Constant development of new and more efficient types of
batteries challenge lead-acid batteries
Threat from Other Types of Batteries
• A serious challenge faced by the market for lead-acid batteries is the rapid advancement in the
overall battery technology
 Continuous development of other types of batteries serve as a challenge to the growth of lead-acid batteries
• Lead-acid batteries have been around for over hundred years, but still suffer from certain
problem areas where they can be challenged by other types of batteries
 Nickel-cadmium, nickel-metal hydride and lithium-ion batteries are the main challengers to lead-acid
batteries
• Bulky and heavy nature of lead-acid batteries compared to other batteries is an area of concern
 Lead-acid batteries fare poorly when it comes to the Gravimetric energy density which is measured in the
unit, kilowatt per kilogram (KW/KG), and is an important parameter to compare different battery packs
Comparative Analysis of Different Types of Batteries
Parameter Lead-Acid
Nickel-
Cadmium
Nickel-Metal
Hydride
Lithium-Ion
Gravimetric Energy Density
(KW/KG)
a - b c - d e - f g – h
Nominal Voltage (V) x1 x2 x3 x4

12
SAMPLE
Lead Prices
Impact
Volatile nature of lead prices has adverse effects on
manufacturing costs, thereby affecting growth
Volatility in Lead Prices
• Lead is the most important constituent of a lead-acid battery and constant changes in its price
can adversely affect the market
• Prices of lead have remained extremely volatile over the years
 This volatility creates uncertainty in procurement of raw materials for manufacturing batteries
 It also has a major impact on the manufacturing costs of lead-acid batteries
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Jul-14Jan-12Jul-11Jan-08 Jan-11Jul-10Jan-10Jul-09Jan-09Jul-08 Jan-14Jul-13Jan-13Jul-12
INR/Metric Ton
x2
x1
x14x13
x12x11
x10x9
x8x7
x6
x5
x4
x3

13
SAMPLE
Batteries (Management and Handling) Rules, 2001 is the law
governing lead-acid batteries in India
Batteries (Management and Handling) Rules, 2001 is the law governing battery regulation
in India and it is limited to only lead-acid batteries
•The Batteries (Management and Handling) Rules, 2001 was issued by the Ministry of Environment and Forests
(MoEF) and provided regulations for the management and handling of lead-acid batteries
•It set up an extensive reporting system for manufacturers, dealers, importers, recyclers and others in the supply
chain of lead-acid batteries and stated the responsibilities of each
Batteries (Management and Handling) Rules, 2001
•Compliance of the provisions of these rules are ensured by the state level Pollution Control Boards and they have
to file annual compliance status reports to the Central Pollution Control Board by 30th April each year
•Data received from the state boards each year has to be compiled and published by the Central Pollution Control
Board and it also has to review the compliance of the rules from time to time to improve the collection and
recycling of used lead-acid batteries
•All records and returns must be computerized
•The Ministry of Environment and Forests or an agency designated by it tracks:
 Distribution and sale of batteries
 Collection, auction, transport and re-processing of used batteries
 Sale of re-processed lead by registered recyclers
 Sale of lead from all domestic producers or importers
Compliance of the rules

14
SAMPLE
Market Competition – Porter’s Five Forces Analysis
• XX
• XX
• XX
• XX
• XX
Bargaining Power of Suppliers
Threat of New Entrants
Competitive Rivalry Bargaining Power of Buyers
Threat of Substitutes
Impact
X
Impact
X
Impact
XImpact
X
Impact
X

15
SAMPLE
Competitive Benchmarking (1/5)
Public Trading Comparable (FY 2014)
Company A Company B Company C
Market Capitalization (INR mn) X X X
Share Price (INR) X X X
EV/EBITDA (x) X X X
EV/Revenue (x) X X X
PE Ratio X X X
Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization and PE ratio is as on 20/11/2014 and Share Price is as on 19/11/2014

16
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/x)
Competitive Benchmarking (2/5)
0
10
20
30
40
%
Company C
z3
z2
z1
Company B
y3
y2
y1
Company A
x3
x2
x1
Net Margin Gross MarginOperating Margin
• XX
• XX
• XX
• XX
• XX

17
SAMPLE
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address XX
Tel No. XX
Fax No. XX
Website XX
Year of Incorporation XX
Ticker Symbol XX
Stock Exchange XX
Category Products/Services
Electrical
Components
XX
Name Designation
XX XX
XX XX
XX XX
XX XX
Hyderabad
Head Office
Public: Domestic Company – Company A (1/4)

18
SAMPLE
Financial Snapshot Key Ratios
Financial Summary
• The company earned a net profit of INR 3.67 bn in FY 2014, as
compared to net profit of INR 2.87 bn in FY 2013
• The company reported total income of INR 34.76 bn in FY
2014, registering an increase of 16% over FY 2013
• The company earned an operating margin of 14.86% in FY
2014, an increase of 0.97 percentage points over FY 2013
• The company reported debt to equity ratio of 0.06 in FY 2014,
a decrease of 24.77% over FY 2013
Key Financial Performance Indicators
Indicators Value (20/11/2014)
Market Capitalization (INR mn) 45,384.9
Total Enterprise Value (INR mn) 42,307.2
EPS (INR) 21.99
PE Ratio (Absolute) 33.30
Particulars
y-o-y change
(2014-13)
2014 2013 2012 2011
Profitability Ratios
Operating Margin 0.97 14.86% 13.89% 12.76% 12.60%
Net Margin 1.02 10.57% 9.55% 9.02% 8.39%
Profit Before Tax Margin 1.39 15.44% 14.05% 13.36% 12.48%
Return on Equity -0.09 26.96% 27.05% 26.12% 22.93%
Return on Capital Employed -0.63 34.30% 34.92% 32.42% 29.79%
Return on Working Capital 16.39 77.67% 61.28% 57.78% 61.22%
Return on Assets 0.58 24.14% 23.56% 22.51% 19.94%
Return on Fixed Assets -23.50 67.57% 91.07% 79.34% 63.54%
Cost Ratios
Operating costs (% of Sales) -0.93 84.96% 85.90% 87.12% 87.36%
Administration costs (% of
Sales) 0.47 12.50% 12.04% 13.03% 14.26%
Interest costs (% of Sales) 0.01 0.02% 0.01% 0.06% 0.08%
Liquidity Ratios
Current Ratio -6.05% 2.05 2.18 2.28 1.99
Cash Ratio -33.83% 0.49 0.74 0.59 0.17
Leverage Ratios
Debt to Equity Ratio -24.77% 0.06 0.08 0.10 0.14
Debt to Capital Ratio -23.32% 0.06 0.08 0.09 0.12
Interest Coverage Ratio -61.19% 770.79 1986.18 225.40 153.47
Efficiency Ratios
Fixed Asset Turnover -30.40% 4.49 6.46 6.16 5.02
Asset Turnover -3.89% 1.61 1.67 1.75 1.58
Current Asset Turnover 12.40% 2.64 2.35 2.52 2.40
Working Capital Turnover 18.89% 5.17 4.34 4.49 4.84
Capital Employed Turnover -7.94% 2.37 2.58 2.60 2.39
Improved Decline
Net Profit/LossTotal Income
4
3
2
1
0
40
30
20
10
0
INR bnINR bn
2014
3.67
34.76
2013
2.87
30.02
2012
2.15
23.85
2011
1.48
17.66

19
SAMPLE
Key Business Segments Key Geographic Segments*
Business Highlights
Description News
Overview • XX
Collaborations • XX
Expansion Plans • XX
100%
50%
0%
2014
100%
Lead Acid Storage Batteries
50%
100%
0%
2012
100%
India
India is the only geographic
segment in which the company
has been operating for the last
five years
Lead Acid Storage Batteries is
the only business segment
from where the company has
earned revenue for last four
years
Note: Due to lack of critical data, geographical segments graph could not be generated

20
SAMPLE
• XX • XX
• XX• XX
TO
WS

21
SAMPLE
Private: Domestic Company – Company B (1/5)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Batteries XX
UPS XX
Name Designation
XX XX
XX XX
XX XX
XX XX
Corporate Address XX
Tel No. XX
Fax No. XX
Website XX
Chennai
Dehradun
Secunderabad
Guwahati
Lucknow
Chandigarh
Delhi
Ahmedabad
Gurgaon
Ranchi
Bangalore
Thrissur
Indore
Mumbai Pune
Cuttack
Jalandhar
Jaipur
Patna
Ghaziabad
Head Office
Branch Office

22
SAMPLE
Shareholders of the Company Ownership Structure
Name No. of Shares held
Simpson & Co. Ltd. 280,495
Tractors & Farm Equipment Ltd. 49,500
Amalgamation Pvt. Ltd. and Simpson
& Co. Ltd.
1
A. Krishnamurty and Simpson & Co.
Ltd.
1
S. Ramanujachari and Simpson & Co.
Ltd.
1
S. Sreenivasa Raghavan and Simpson
& Co. Ltd.
1
P. S. Rajamani and Simpson & Co. Ltd. 1
Total 330,000
100.00%
Note: Details of shareholders as on AGM dated 26th Aug, 2014
Corporate bodies

23
SAMPLE
Financial Snapshot Key Ratios
Particulars
y-o-y change
(2014-13)
2014 2013 2012 2011
Profitability Ratios
Operating Margin -2.16 -5.17% -3.02% 2.35% 4.50%
Net Margin -1.94 -2.97% -1.02% 1.95% 3.62%
Profit Before Tax Margin -2.55 -4.48% -1.93% 3.08% 5.37%
Return on Equity -8.89 -12.87% -3.98% 6.84% 12.48%
Return on Capital Employed -10.72 -22.45% -11.74% 8.25% 15.51%
Return on Working Capital -22.21 -40.54% -18.33% 9.15% 16.29%
Return on Assets -4.28 -9.50% -5.22% 4.29% 7.33%
Return on Fixed Assets -57.66 -117.41% -59.75% 50.47% 86.67%
Cost Ratios
Operating costs (% of Sales) 2.16 105.21% 103.05% 97.63% 95.46%
Administration costs (% of
Sales) N.A. N.A. N.A. N.A. N.A.
Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.
Liquidity Ratios
Current Ratio -7.16% 1.41 1.52 2.37 2.18
Cash Ratio 6.53% 0.53 0.50 0.81 0.67
Leverage Ratios
Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.
Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Efficiency Ratios
Fixed Asset Turnover 15.06% 22.54 19.59 21.32 19.10
Asset Turnover 6.58% 1.82 1.71 1.81 1.62
Current Asset Turnover 10.33% 2.27 2.06 2.23 1.95
Working Capital Turnover 29.46% 7.78 6.01 3.87 3.59
Capital Employed Turnover 11.99% 4.31 3.85 3.48 3.42
Improved Decline
Financial Summary
• The company incurred a net loss of INR 73.7 mn in FY 2014, as
compared to net loss of INR 25.7 mn in FY 2013
• The company reported total income of INR 2,484.3 mn in FY
2014, registering an decrease of 1% over FY 2013
• The company earned an operating margin of -5.17% in FY
2014, a decrease of 2.16 percentage points over FY 2013
Net Profit/LossTotal Income
0
50
100
-50
-100
3,000
2,000
1,000
0
2014
-73.7
2,484.3
2013
-25.7
2,513.7
2012
46.2
2,371.6
2011
79.5
2,196.5
INR mnINR mn

24
SAMPLE
Business Highlights
Description News
Overview • XX
Battery Products • XX

25
SAMPLE
•XX •XX
•XX•XX
TO
WS

Thank you for the attention
The Lead-Acid Battery Market – India 2014 report is a part of Netscribes’ Energy Series.
For more detailed information or customized research requirements please contact:
About Netscribes
Netscribes 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 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 of this report,
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.
Phone: +91 22 4098 7600
E-Mail: info@netscribes.com

Market Research Report : Lead acid battery market in india 2014 - Sample

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (9)

More from Netscribes, Inc.

More from Netscribes, Inc. (20)

Market Research Report : Lead acid battery market in india 2014 - Sample