Market Research Report :Set-Top Box Market in India 2012

Set‐Top Box Market in India (Sample)
October 2012

Executive Summary

 Around x1 mn TV‐household additions are expected in India in the next x2 years, generating
Set‐Top Box huge demand for STBs
Market  In terms of digitization, city1 leads amongst the metro cities while city2 has been lagging
behind

E
L
Drivers: Challenges:
 Complete digitization of TV Services  Low‐Cost STB Imports and Low
Drivers &
Challenges P
 Emerging Middle‐Class and Rising
Disposable Income
Domestic Production
 Shortage and Supply Backlog of STBs

Penetration

AM
 Increase in Television And TV Service

S
 Increase in Sales of LCD and LED TVs

 Trend1
Market Trends  Trend2
 Trend3

Major Players

Set‐Top Box Huawei Technologies Co. Ltd. Pace Plc Changhong Electric Co. Ltd.
Player Profiles
Skyworth India Electronics Humax Electronics India
Indieon Technologies Pvt. Ltd.
Pvt. Ltd. Pvt. Ltd.

SET TOP BOX MARKET IN INDIA 2012.PPT 2

• Introduction
• Set‐Top Box Market Overview
• Government Initiatives
• Drivers & Challenges
• Market Opportunities
• Market Trends
• Set‐Top Box Players
• Strategic Recommendations
• Appendix


Introduction (1/2)

Set‐Top Box (STB) – Overview
• A Set‐Top Box (STB) is an electronic device that is used to decode digital signals received from satellite to TV sets

 STB is connected to an external source of signal, like satellite, cable, terrestrial or internet
 STBs are also referred to as consumer Integrated Receiver Decoder (IRD)

L E
• Basic objective of STBs are to demodulate broadcasted signals into audiovisual contents that can either be displayed
on TV or alternate display device, or be captured and recorded for later viewing purpose

P
• It basically is a compact computer system including a Central Processing Unit (CPU), memory, local storage, and
input/output ports assigned, programmed and meant for specific task related to TV broadcasting at end‐user level

AM
 Some of the key components inside STBs include a microprocessor, memory, device interfaces (analog and digital), conditional access
module card, a network interface (tuners and transmitters), and a user interface

S
• STB usually runs software to allow the user to interact with the programs shown on the television as user desires
Function Procedure of STB

4 5
When a particular The channels are
STB is connected to The STB picks up the
The video feed carrier has been stored according
a coaxial cable MPEG‐2 stream and
transport stream successfully to the order of
supplied by cable tries to lock onto
is transmitted locked, the the broadcasting
operator or to a the pre‐registered
via coaxial cable channels present carriers and
satellite dish‐ or programmed
or dish‐antenna are extracted and thereby
antenna via a cable carrier
stored numbered


Global Set‐Top Box market size is expected to reach around
INR x1 tr by 20‐‐ despite of projected aspect1 from 20‐‐
Market Overview – Global (2/2)
Set‐Top Box ‐ Market Size and Growth

INR bn
+F% • Global STB market size in terms of revenue is
expected to reach around INR x2 tr by 20‐‐

c d e
b • The growth rate is likely to slow beyond 20‐‐ to

E
a
x3% Y‐o‐Y while the same is expected to be

P L around x4% between 20‐‐ and 20‐‐
 This is largely due to the aspect2 in region1 and
region2

AM
Set‐Top Box ‐ Yearly Unit Shipment

S
• Yearly unit shipment of STBs across the
globe is expected to retain steady growth of
x5% CAGR between 20‐‐ and 20‐‐
mn

g
h
m
j
k
l

• Market is driven by specific1 across the
world and product1 and service1 adoption
in the region3


In terms of digitization, city11 leads amongst the metro
cities while city12 has been lagging behind
Market Overview – India (5/7)
Set‐Top Box Adoption in Metro Cities – India
Total TV DTH Cable TV Cable TV Digitization
Metro
Household Penetration Subscribers Subscribers STBs Achieved in
Cities
(‘000s) (%) (‘000s) (‘000s) (‘000s) Cable Service (%)
Mumbai X1 X5 X9 X13

E X17 X21

L
Kolkata X2 X6 X10 X14 X18 X22

Delhi
Chennai
X3

X4
X7

X8
X11

X12
P X15

X16
X19

X20
X23

X24

City1 City2

AM City3 City4

S
a b c


After completion of digitization in India, a yearly x1% growth
in revenue can be expected from the STB market
Market Overview – India (7/7)
Market Potential of Set‐Top Box Industry – Market Size

INR bn
c1 c2

b1 b2

E
a1 a2

P L
AM
Minimum Potential Average Potential Maximum Potential

S
• India is a specific1 market where type1, type2 and type3 STBs have specific2 opportunity
• Revenue potential of STB industry has been drawn from x2 perspectives depending upon minimum, maximum and
average specific3 of presently available set‐top box devices
• As per study, specific4 set‐top box available to consumers costs INR y1, INR y2 and INR y3 without any service
bundle
• Beyond 20‐‐, a yearly revenue growth of y4% can be expected in STB market valuation between 20‐‐ and 20‐‐


Drivers & Challenges – Summary

Drivers Challenges
Low‐Cost STB Imports and Low
Complete digitization of TV Services
Domestic Production
Emerging Middle‐Class and Rising
Shortage and Supply Backlog of STBs
Disposable Income
Increase in Television And TV Service
Penetration

Increase in Sales of LCD and LED TVs


Market Trends

• TextText TextText TextText TextText TextText TextText TextText TextText TextText
Trend1

•
•

E
TextText TextText TextText TextText TextText TextText TextText TextText TextText

L
Trend2

P

Trend3
•
•

AM

S

Trend4


DTH has already penetrated the Indian market and is only
poised to become a common name in Indian household
Direct To Home (DTH) Service

• DTH services refer to the distribution of multi‐channel programs in Ku‐band through the usage of satellite system
• Programs transmitted through DTH can be directly received through small dish antennas installed at convenient
locations at homes

• Ministry is the licensing authority for granting license for the operation of DTH services in India
• Current overall share of DTH households among total TV households of India is pegged at x1%

opportunities for DTH players
L E
• Government of India’s aim for complete digitization of TV broadcasting by 20‐‐ has provided ample growth

P
DTH ‐ Market Size & Growth

AM DTH ‐ Market Share (20‐‐)

S
h
INR bn
g j
+a% 30%
f k
e l
d
c 18% m
b
n

15%


Porter’s Five Forces Analysis

Impact
Threat of New Entrants
• TextText TextText TextText

Impact Impact

E
Impact

Bargaining Power of Suppliers
P LCompetitive Rivalry
Bargaining Power of Buyers

M
• TextText TextText TextText • TextText TextText TextText • TextText TextText TextText
• TextText TextText TextText • TextText TextText TextText • TextText TextText TextText

S A Threat of Substitutes
Impact



SWOT Analysis of STB Market

Strengths Weaknesses

• TextText TextText TextText TextText TextText

E • TextText TextText TextText TextText TextText

L
• TextText TextText TextText TextText TextText • TextText TextText TextText TextText TextText

P

AM SWOT

S
Analysis

Opportunities Threats



Public: Foreign Company – Company 1 (‐/‐)
Company Information Offices and Centres – India

Corporate Address

Tel No.
Fax No.

Website

E
Year of Incorporation
Ticker Symbol
Stock Exchange

P L India Head Office

M
Products and Services

Category

Set‐Top Box Products
Products/Services

• S1 S A Key People
Name Designation
Person 1 D1
Person 2 D2
Person 3 D3


Financial Snapshot Key Ratios
Total Income Net Profit/Loss y‐o‐y change
Revenue Profit Particulars 2011 2010 2009 2008
(2012‐11)
INR mn INR bn
s Profitability Ratios
Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%

r Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%

p q Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%
Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%

Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%
0 0
Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%

E
20‐‐ 20‐‐ 20‐‐ 20‐‐
Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%

L
Return on Fixed Assets
Financial Summary 28.31 319.77% 291.46% 227.97% 346.05%

Cost Ratios

P
• The company incurred a net profit of INR ‐ bn in FY 20‐‐, as Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
compared to net profit of INR ‐ bn in FY 20‐‐ Administration costs (% of
0.49 10.10% 9.61% 9.11% 7.41%
Sales)
• The company reported total income of INR ‐ bn in FY 20‐‐, as

M
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%
compared to INR ‐ bn in FY 20‐‐
Liquidity Ratios

A
• The company earned an operating margin of ‐ per cent in FY 20‐‐, an Current Ratio ‐12.79% 1.27 1.46 1.95 1.90
increase of ‐ percentage points over FY 20‐‐
Cash Ratio

S
‐8.37% 0.60 0.65 1.21 1.18
• The company reported debt to equity ratio of ‐ in FY 20‐‐, a decrease Leverage Ratios
of ‐ per cent over FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91

Key Financial Performance Indicators Debt to Capital Ratio NA NA NA NA NA
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67

Indicators Value (28/06/2012) Efficiency Ratios
Market Capitalization (INR bn) A Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41

Total Enterprise Value (INR mn) B Asset Turnover 24.95% 1.83 1.46 1.21 1.32
Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46
EPS (INR) C
Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09
PE Ratio (Absolute) D Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51

Improved Decline


Key Business Segments Key Geographic Segments

k1 k2 k3 k4 k5 k6 k7 k8

E
L
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐

Key Information
P
Description Details

AM
Overview S
• C2 designs, manufactures, and markets mobile communication and media devices,
personal computers, and portable digital music players
• It also sells software, services, peripherals, networking solutions, and third‐party digital
content and applications worldwide
• C3 operates in India via its subsidiary, C4


Private: Domestic Company – Company 2 (‐/‐)
Company Information Offices and Centres – India

India Head Office

Tel No.

E
L
Fax No.

Website

P
M
Year of
Incorporation
India Office
Products and Services

Category
S A
Products/Services
Key People
Name Designation
Set‐Top Box Products •S1
Person 1 D1
Person 2 D2
Person 3 D3


Financial Snapshot Key Ratios
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Total Income Profit (2012‐11)
INR mn Profit / Loss INR mn Profitability Ratios
W Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%

V Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%
Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%

Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%
Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%

E
U Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%

L
T Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%
0 0 Cost Ratios

P
20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
Administration costs (% of
0.49 10.10% 9.61% 9.11% 7.41%
Financial Summary Sales)

M
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%

• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as Liquidity Ratios

A
compared to net profit of INR ‐ bn in FY 20‐‐ Current Ratio ‐12.79% 1.27 1.46 1.95 1.90

S
Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18
• It reported total Income of INR ‐ bn in FY 20‐‐, as Leverage Ratios
compared to INR ‐ bn in FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
Debt to Capital Ratio NA NA NA NA NA
• The company earned an operating margin of ‐ per cent in
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐
Efficiency Ratios
• The company reported debt to equity ratio of ‐ in FY 20‐‐, Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41

an increase of ‐ per cent over FY 20‐‐ Asset Turnover 24.95% 1.83 1.46 1.21 1.32
Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46
Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09
Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51

Improved Decline

SMARTPHONE MARKET IN INDIA 2012.PPT

Key Recent Developments

Description Details

• O1 is a leading player in technologies including real‐time bidding, data marketplaces, big
Overview data, algorithms and targetting in o2
• Its engine is manned by over ‐ people across o3, o4, o5, o6, o7

• The company works closely with top publishers across the global platform including o8
and o9

E
• It constitutes an exclusive reseller of o10’s premium inventory in India, Thailand,

L
Extended Product
Indonesia and Phillipines
Portfolio

P
• It also has partnership with technology vendors namely o11, o12, o13, o14
• Its list of investors include names such as Nexua Venture Partners, Helion Venture

M
Partners, Norwest Venture Partners and Draper Fisher Juvertson,

S A

Strategic Recommendations (1/2)

Companies need to focus on specific1 and specific2 early to leverage on specific3

Recommendation1

E
• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

L

P

AM

S



Appendix

Ratio Calculations Ratio Calculations
(Operating Current Assets / Current
Operating Margin Current Ratio
Income/Revenues)*100 Liabilities

Net Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance +
Cash Ratio Marketable Securities) / Current
(Income Before Tax / Revenues Liabilities)}
Profit Before Tax Margin
*100
Total Liabilities / Shareholders
Debt to Equity
(Net Income / Shareholders Equity
Return on Equity (ROE)
Equity)*100
{Total Debt / (Shareholders
Debt to Capital Ratio
EBIT / (Total Assets – Current Equity + Total Debt)}
Return on Capital (ROCE)
Liabilities)*100
Interest Coverage Ratio EBIT / Interest Expense
(Net Income / Working Capital)
Return on Working Capital
*100
Fixed Asset Turnover Sales / Fixed Assets
Return on Assets (Net Income / Total Assets)*100
Asset Turnover Sales / Total Assets
Return on Fixed Assets (Net Income / Fixed Assets) *100

(Operating Expenses / Sales) Current Asset Turnover Sales / Current Assets
Operating Costs (% of Sales)
*100

Administration Costs (% of (Administrative Expenses / Sales) Working Capital Turnover Sales / Working Capital
Sales) *100
Capital Employed Turnover Sales / Shareholders Equity
Interest Costs (% of Sales) (Interest Expenses / Sales) *100


Sources of Information

Secondary Research Primary Research
Print Medium Interviews
Leading Newspapers Leading Industry Vendors
Consumer Electronics and Technology Journals / Industry Stakeholders
Magazines
Industry Experts
Business Magazines
General Consumers
Electronic Medium Online Social Media
Company Websites
Government Websites / Resources
Online Consumer Electronics Magazines
Online Technology and Gadget Journals / Articles
Premium Databases


Thank you for the attention
The Set‐Top Box Market – India 2012 report is a part of Netscribes’ Consumer Electronics Series.
For the complete market research report, contact us at:

Phone: +91 33 4064 6214
E‐Mail: sales@netscribes.com

Follow us on:

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.


Market Research Report :Set-Top Box Market in India 2012

Recommended

Recommended

More Related Content

More from Netscribes, Inc.

More from Netscribes, Inc. (20)

Market Research Report :Set-Top Box Market in India 2012