Market Research Report :Construction chemicals market in india 2013


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The new report, ‘Construction Chemicals Market in India’, states that growth in construction activities has led to significant rise in demand for construction chemicals in the Indian market. Construction chemicals are slowly expected to play a vital role in the development of the Indian construction industry. Multiple benefits associated with the application of construction chemicals have also contributed to the robust growth of the market.
Construction chemicals are a segment of the specialty chemicals sector. Penetration of construction chemicals for different applications is relatively low in India as compared to the developed nations.
The development of the construction chemicals market is supported by the focus on infrastructure construction in India. Growth in real estate sector is expected to stimulate the demand for construction chemicals. Rise in disposable income of the consumers will enable them to spend more on construction chemicals. Growing economy of the country will also aid the sustainable development of the Indian construction chemicals industry.
However, the industry has also some pain points. Low awareness about the application and benefits of construction chemicals deters the development of the market. Further lack of standards presents significant hindrance to the growth of the industry. Unskilled labor along with a price sensitive consumer base adversely affects market growth.

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Market Research Report :Construction chemicals market in india 2013

  1. 1. Construction Chemicals Market IndiaConstruction Chemicals Market – India Jun 2013
  2. 2. Executive SummaryMarketConstruction chemicals is one of the niche segments of the specialty chemicals industry in IndiaGrowing focus on construction activities in India has led to significant rise in demand for construction chemicals in the Indian marketDrivers & Drivers Growth in Infrastructure Construction Real Estate DevelopmentblChallenges Low Consumer Awareness Lack of Standards Price SensitivityChallengesF Ti 2 d Ti 3 Citi Rise in Disposable Income  Healthy Economic Outlook Price Sensitivity Unskilled LaborTrendsFocus on Tier 2 and Tier 3 CitiesUse of Silicone‐based ChemicalsEco‐Friendly Construction ChemicalsCompetitionMajor PlayersCompany A Company BCompany C Company D2Company E  Company FCONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  3. 3. •Macro Economic Indicators•Introduction•Market Overview•Market Overview•Construction Chemicals ‐ Classification•Major Application Areasj pp•Penetration Rate ‐ Key Segments•Supply Chain Analysis•Major Manufacturing Hubs•Drivers and Challenges•Trends•Trends•Competitive Landscape•Strategic Initiatives3Strategic Initiatives•AppendixCONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  4. 4. SAMPLEEconomic Indicators (1/3)Gross Fiscal Deficit: Monthly 600500INR bnx6x5x3500400300200100x4x3x2x1Exchange Rate: Monthly1000Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐g y55.0x2USD/INRx154.054.5 x3 x6x2x5x4453.5Month 20‐‐Month 20‐‐ Month 20‐‐ Month 20‐‐Month 20‐‐Month 20‐‐CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  5. 5. Robust specialty chemicals industry has the potential to attract significant additional investment over the Zth FYPSpecialty Chemicals IndustrySpecialty Chemicals – Share of Construction Chemicals INR bnaX%bacZ%x220‐‐de0x1Y%BA20‐‐020‐‐eBAX%• Specialty chemicals segment has witnessed a growth of x% over the zth Five Year Plan (FYP) period from FY 20‐‐ ‐‐ ‐‐• Share of construction chemicals segment in the 20‐‐e5overall specialty chemicals market is expected to remain stagnant at the end of the zth FYPY%CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  6. 6. SAMPLEWide range of chemicals find extensive application in different construction materialsA• Product 1B C• Product 2• Product 3• Product 4• Product 5• Product 6• Product 1• Product 2• Product 3• Product 4• Product 5• Product 1• Product 2• Product 3• Product 4Product 6• Product 7• Product 8• Product 9Product 5• Product 6• Product 7Product 4• Product 5D E• Product 1• Product 1• Product 2• Product 3• Product 4• Product 2• Product 3• Product 4• Product 5• Product 6Major Applications6• Product 6• Product 7CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  7. 7. Product A OverviewBenefitsA B C DPenetration Rate ComparisonPenetration Rate – Comparison %ax1Point 1bcd x4x3x270Country 4Country 3Country 2Country 1CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  8. 8. Drivers & Challenges – Summary ChallengesLow Consumer AwarenessDriversGrowth in Infrastructure ConstructionR l E D lLack of StandardsPrice SensitivityReal Estate DevelopmentRise in Disposable Income Unskilled LaborHealthy Economic Outlook8CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  9. 9. Focus on infrastructure construction will boost the demand for construction chemicals in the Indian marketGrowth in Infrastructure Construction Impact• Finding 1• Finding 2• Finding 3• Finding 4• Finding 5Planned Investment in InfrastructureInvestment in Infrastructure – As % of GDPb Z5%Z3aZ4Z2Z1A B INR bnx2bZ%cadx4ey5y4cx5y3x3y1 y2x2x1Z1fx1dce90y520‐‐‐ 20‐‐‐ 20‐‐‐y3y1 y220‐‐‐20‐‐ ‐‐‐0Y Plan Z PlanCONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  10. 10. Trends – Summary Focus on Tier 2 and Tier 3 CitiesCitiesKey dTrendsEco‐Friendly C i Ch i lUse of Silicone‐Based Ch i lConstruction Chemicals Chemicals10CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  11. 11. Owing to multiple benefits the industry is witnessing a growing demand for silicone‐based chemicalsSilicone based chemicals• Point 1• Point 2iUse of Silicone‐Based ChemicalsUse of A ‐ Advantageschemicals gaining popularity• Point 3•Point 1•Point 2•Point 3Major Application Areas of AB C D‐ ‐ ‐‐ ‐ ‐‐ ‐ ‐‐ ‐ ‐‐ ‐ ‐‐ ‐‐11CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  12. 12. Competitive Benchmarking (1/5)Public Trading Comparables (FY 20‐‐) Company 1 Company 2 Company 3 Company 4Market Capitalization (INR mn)‐ ‐ ‐ ‐Share Price (INR) ‐ ‐ ‐ ‐EV/EBITDA (x) ‐ ‐ ‐ ‐/EV/Revenue (x) ‐ ‐ ‐ ‐PE Ratio ‐ ‐ ‐ ‐12CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  13. 13. Public: Domestic Company – Company A (1/4)Company Information Offices and Centres – India Corporate AddressAddressTel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Tel No. 91 Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Website websiteYear of Incorporation 19‐‐Products and ServicesTicker Symbol ‐‐‐‐‐‐Stock Exchange ‐‐‐Key PeopleProducts and ServicesCategory Products/ServicesSegment Product 1, product 2, product N D i tiHead Office3,………………….Others Product 1, product 2, product 3………Name DesignationPerson 1 DesignationPerson 2 DesignationPerson 3 Designation13, p , pPerson 4 DesignationCONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  14. 14. i i l S h K iPublic: Domestic Company – Company A (2/4)Financial Snapshot Key RatiosParticulars y‐o‐y change (20‐‐‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐Profitability RatiosOperating Margin ‐0.08 5.26% 5.34% 9.10% 6.86%iNet Profit/LossTotal Income3000040000 1,500INR mnx4x3x2x1INR mnNet Margin ‐0.95 2.86% 3.81% 5.89% 3.68%Profit Before Tax Margin ‐0.38 4.25% 4.63% 9.16% 6.76%Return on Equity ‐2.56 9.62% 12.17% 11.40% 13.39%Return on Capital Employed 0.77 16.26% 15.49% 17.62% 24.96%Return on Working Capital 7.01 34.36% 27.35% 26.05% 44.47%Return on Assets ‐0.76 8.44% 9.20% 11.36% 13.45%010000200003000005001,00020‐‐y420‐‐y320‐‐y220‐‐x1y1Financial 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 y% over FY 20Return on Fixed Assets ‐4.71 39.29% 43.99% 56.23% 56.98%Cost RatiosOperating costs (% of Sales) 0.12 94.74% 94.62% 90.87% 93.11%Administration costs (% of Sales)1.30 16.92% 15.62% 16.75% 16.99%Interest costs (% of Sales) ‐0.03 0.27% 0.30% 0.10% 0.50%registering an increase of y% over FY 20‐‐• The company earned an operating margin o fx% 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‐‐Liquidity RatiosCurrent Ratio ‐17.36% 1.51 1.83 2.23 1.66Cash Ratio 26.93% 0.03 0.03 0.37 0.10Leverage RatiosDebt to Equity Ratio 29.39% 0.17 0.13 0.00 0.06Debt to Capital Ratio 25.19% 0.14 0.11 0.00 0.06Key Financial Performance IndicatorsIndicators Value (dd/mm/yy)Market Capitalization (INR mn) ‐Total Enterprise Value (INR mn) ‐EPS (INR)Debt to Capital Ratio 25.19% 0.14 0.11 0.00 0.06Interest Coverage Ratio 10.05% 19.42 17.65 88.95 13.78Efficiency RatiosFixed Asset Turnover ‐8.70% 7.47 8.18 6.16 8.27Asset Turnover ‐6.20% 1.60 1.71 1.24 1.95Current Asset Turnover ‐4.16% 2.21 2.30 1.57 2.56W ki C it l T 28 42% 6 53 5 09 2 85 6 4614EPS (INR) ‐PE Ratio (Absolute) -Working Capital Turnover 28.42% 6.53 5.09 2.85 6.46Capital Employed Turnover 2.41% 2.88 2.81 1.93 3.42Improved DeclineCONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  15. 15. Public: Domestic Company – Company A (3/4)Key Business Segments Key Geographic SegmentsaFCEBDA BA18%17%ab0%e4d4c4b4a4e3d3c3b3a3e2d2c2b2a2e1 d1c1b1a1ab0% y4x4y3x3y2x2y1x1Business HighlightsD i ti N0%20‐‐20‐‐20‐‐d220‐‐e1 d1 0%20‐‐y20‐‐y20‐‐y20‐‐yDescription  NewsOverview• Company A is one of the leading chemical companies operating in the global market with around x manufacturing units around the world• Company A , a division of Company B, engages in the production of construction chemicalschemicalsBrand/Product Launch• In Mar 20– Company A launched a new brand X  for the construction industry• Solutions provided under the new brand name include chemical solutions used for new construction, maintenance, repair and renovation of buildings and infrastructure• Environment friendly and innovative coating and paints solutions were launched in Y 20‐‐15• Environment friendly and innovative coating and paints solutions were launched in Y 20held in City ACONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT
  16. 16. Thank you for the attentionPhone: +91 22 4098 7600The Construction Chemicals Market – India 2013 report is a part of Netscribes, Inc.’s Manufacturing Industry Series.For any queries or customized research requirements, contact us at:E‐Mail: info@netscribes.comFollow 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 , g g f g p y p p finvestment & 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” is16Disclaimer: 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.CONSTRUCTION  CHEMICALS MARKET IN INDIA 2013.PPT