Electric wire and cable market in india 2014 sample

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Electric Wire and Cable Market – India
October 2014

2
Executive Summary
Market
Overview
Drivers &
Challenges
EXIM
Competitive
Landscape
 The Indian wire and cable industry is predominantly volume-driven
 It accounts for ~ ’x’% of the total transmission and distribution segment
 In 20--, the market stood at INR ‘a’ bn and is expected to reach INR ‘b’ bn by FY 2018, growing at CAGR of
about ‘y’%
Export
 India majorly exports to UK, USA, Nepal,
UAE and Sri Lanka
Drivers
 Focus on Power Sector
 Large Investments in Telecom Sector
 Robust Industrialization
 Growing Urbanization
Challenges
 Increase in Price of Raw Materials
 Increase in Competition
 Safety Hazards
Major Players
Company A Company B Company C
Company D Company E Company F
Trends
 Technological Innovations
 Preference for Aluminum
Import
 India mainly imports from Russia, UAE,
Turkey and China
ELECTRIC WIRE AND CABLE MARKET IN INDIA 2014.PPT

3
•Macroeconomic Indicators
•Introduction
•Market Overview
•Export-Import
•Drivers & Challenges
•Government Initiatives
•Trends
•Competitive Landscape
•Opportunities
•Strategic Recommendations
•Appendix

4
Economic Indicators (1/3)
11
12
13
14
15
b2
a2
Q1
d1
c1
b1
a1
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
INR tn
2013-142012-132011-122010-11
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
q
Jul 2013 - Aug 2013
p
%
Nov 2013 - Dec 2013
t
Oct 2013 - Nov 2013
s
Sep 2013 - Oct 2013
r
Aug 2013 - Sep 2013

5
Backed by growth in end-user industries, wire and cable
demand is expected to increase rapidly in the coming years
Wire and Cable-Market Overview (1/2)
• Indian wires and cable market is primarily dependent on
sales volume and involves huge quality and technical
specifications
 End-use industries like telecom, energy generation, automotive,
construction determines the market prospects for wire and cable
industry
• Rise in investment in infrastructure in developing countries
like India, China, Brazil , Russia are stimulating the market
growth of wire and cable industry
 International players are considering India as a potential market
for HV and EHV cables
FY2013
x1
0
x2
x3
x4
x5
x6
INR bn
FY 20--
f
e
d
c
b
Y%
FY 20--FY 20--FY 20--FY 20--FY 20--
a
Indian Wire and Cable Market – Size and Growth
p1%
p2%
Organized
Unorganised
Market Segmentation-Sector-wise

6
Drivers & Challenges – Summary
Drivers
Focus on Power Sector
Large Investments in Telecom Sector
Robust Industrialization
Growing Urbanization
Challenges
Increase in Price of Raw Materials
Increase in Competition
Safety Hazards

7
Emphasis on transmission lines addition in the 12th FYP will
boost the domestic demand for cables
• Indian government has placed utmost importance to the power sector and also to the
development of infrastructure
 Growth of the infrastructure and power sector is directly related to the GDP of the country
• H1 FY 20-- saw an inflow of INR ‘xx’ bn in the power sector through the FDI route
• FDI up to ‘yy’% is permitted under the automatic route for projects involved in electricity
generation (except atomic energy), transmission, distribution and power trading
• Since the power sector is developing and expanding, so the need for electric cables and wires is
on the rise and likely to increase even further
Focus on Power Sector (1/4)
Transmission Lines Additions
Impact
b5
b4
b3
b2
b1
0
INR bn
12th FYP
a3%
a4%
11th FYP
a1%
a2%
Distribution
Transmission
z5
z6
z4
z3
z2
z1
0
p1
p2
10th FYP
‘000 Ckt
12th FYP
p3
11th FYP
Planned T&D Investments
H1 refers to the first six month of the financial year

8
Trends
Preference for AluminumTechnological Innovations

9
Porter’s Five Forces Analysis
Competitive RivalryBargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Threat of New Entrants
Impact
X
Impact
X
Impact
X
Impact
X
Impact
X

10
Competitive Benchmarking (1/5)
Public Trading Comparables
Company A Company B Company C Company D
Market Capitalization (INR mn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio

11
Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)
Competitive Benchmarking (2/5)
• Company B recorded gross margin of b1%, higher than that of Company A, Company C and Company D which recorded
gross margin of a1%, c1%, d1% respectively
• Company A recorded highest operating margin of a2%, followed by Company B, Company D and Company C which
recorded operating margin of b2%, d2%, and c2% respectively
• Company A recorded a net margin of a3%, higher than that of Company D and Company C but lower than Company B
which recorded net margin of b3%
x5
x4
x3
x2
x1
%
Company D
d3
d2
d1
Company C
c3
c2
c1
Company B
b3b2
b1
Company A
a3a2
a1
Net MarginOperating MarginGross Margin

12
Public: Domestic Company – Company A Ltd. (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Name Designation
Person 1
Chairman and
Managing Director
Person 2 Director
Person 3 Director( Finance)
Person 4 Executive Director
Noida
Category Products/Services
Lighting Products
Wires and cables
Energy Meters
Modular Wiring
accessories
Headquarters

13
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net loss of INR ‘d2’ mn in FY 20-- as against INR
‘c2’ mn in FY 20--
• The company reported total income of INR ‘d1’ mn in FY 20--, registering
an increase of ‘p’% over FY 20--
• The company earned an operating margin of ‘x.x’% in FY 20--, an increase
of ‘y.y’ % points over FY 20--
• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase
of ‘z.z’% over FY 20--
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR)
Total Enterprise Value (INR)
EPS (INR)
PE Ratio (Absolute)
Particulars
y-o-y change
(20-- - --)
20-- 20-- 20-- 20--
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Net Profit/LossTotal Income
x1
y3
y2
y4
y1
y0
x4
x3
x2
c1
20--
b2
b1
20--
a2
a1
20--
d2
INR mnINR mn
d1
20--
c2

14
Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
• Company A Ltd. was formerly known as Company E Ltd. and changed its name to Company A Ltd. in July 20--
• Manufactures and markets a wide range of electrical products like wires and cables, fans, switches, geysers
and mobile accessories
• Demerged its metering and power generation business in 20-- and diversified the business of LED lighting
products and energy efficient water heaters and fans
Expansion Plans • In FY 20--, acquired two factories at SIDCUL Haridwar and is looking to diversify into home appliances
x4
x3
x2
x1
x0
20--
c4 b4
a4
20--
c3 b3
a3
20--
e1
d1b2
a2
20--
c1
b1 a1
y3
y2
y1
20--
p4
20--
p3
20--
p2
20--
s1
r1
p1
Switchgear
M&PG
Others
Lighting
Cables&Wires Other CountriesEuropean UnionIndia

15
TO
WS
Public: Domestic Company – Company A (4/4)

16
Private: Domestic Company – Company B (1/5)
Key People
Products and Services
Mumbai
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Category Products/Services
Cables
Wires
Headquarters
Name Designation
Person 1 CEO
Person 2 Director

17
Shareholders of the Company as on dd/mm/yyyy Ownership Structure
Name No. of Shares held
Shareholder 1 a
Shareholder 1 b
Total x
48.6%
Directors or relatives of directors

18
Financial Snapshot Key Ratios
Financial Summary
Particulars
y-o-y change
(20-- - --)
20-- 20-- 20-- 20--
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Net Profit/LossTotal Income
x3
x2
x1
y3
y1
y2
b4
a4
2012
b3
a3
2011
b2
a2
2010
b1
a1
INR mn
2013
INR mn
• Company earned a net profit of INR ‘b4’ mn in FY 20--, as compared to net
profit of INR ‘b3’ mn in FY 20--
• It reported total income of INR ‘a4’ mn in FY 20--, registering a decrease of
‘p’% over FY 20--
• Earned an operating margin of ‘x.x’ % in FY 20-- a decrease of ‘y.y’
percentage points over FY 20--
• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase
of ‘z.z’% over FY 20--

19
Business Highlights
Description News
Overview
• Company B manufactures, supplies and exports electrical wires and cables in India
• Manufacturing facility is in ‘Z’
• ISO 9001-2008 and ISO 14001 : 2004 certified and follows BIS and CSA standards
Certifications and approvals
• The products are approved by Technical Advisory Committee, Mumbai port trust, HPCL and Public Works
Department (PWD)
• Obtained certificate of performance from companies like Reliance Petroleum Ltd. and Abby Lighting
Clients
• Domestic clients include A, B, C., D
• It also exports its products in countries like UK, North Ireland and Middle East

20
TO
WS

21
Growing prominence of renewable energy in India to
provide huge opportunity to wire and cable industry
• Principal sources of renewable energy are
 Wind Energy
 Small Hydro up to 25 MW
 Biofuel
 Solar Energy
• Renewable energy capacity presently accounts for x%
of the total installed power capacity and y% of the
electricity produced in India
• The installed capacity is estimated to increase to z%
by 20--
• India plans to more than double its renewable energy
capacity by 20--
• The Government of India plans to generate an
additional xx GW of renewable energy in the 12th
Plan Period, more than double the yy GW added
during the 11th Five Year Plan
Renewable Energy Market Segmentation
d%
b%
c%
a%
Shift Towards Renewable Energy Forecasted Generation Mix by 20--
Jan, 2014
Small Hydro Power
Solar
Biofuel
Wind
Total installed
capacity of
renewable energy is
x GW
Resources Estimated Installed
Capacity (GW)
Coal xx
Gas xx
Hydro xx
Renewable xx
Nuclear xx

22
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