Market Research Report : Machine Tools Market in India 2012


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As globalization set in, event management got a head start as multinationals started pouring into India. The general need to sculpt an event with utmost success has deliberated on the advent of event management as a profession. Today even general family events such as marriages are treading the lines of getting assistance from event management concerns. Formerly what started as a means of streamlining the entire set of activities to make a grand event, has inadvertently transpired into infusing elements of glamour and glitz to make it stand out from the rest.
The report begins with an introduction of concept of event management along with a brief description of the event planner as well as the activities that is required to manage. It is then followed by a detailing of the key steps in event management. The market overview section entails an understanding of the sector in India as also provides the market size and growth. A description of the key segments that event management concerns look to cover comes next. This gets followed by an analysis of the costs incurred and revenues garnered by a concern in this field on a normal basis. The focus then moves towards discussing the revenue model adopted by majority of the players in this sector. The next section elaborates on the value chain analysis of the sector. The section gets concluded with a Porter’s Five Forces analysis of the sector.

The Machine tool market in India is in its growing phase and gradually getting more attention from the Government of India as well. Machine tool is the feeder industry for the whole capital good sector as it is the supplier of various basic machineries required by other major industries. In the recent years, the industry has witnessed entry of different multinationals that have either gone for joint ventures or wholly owned subsidiaries in India for setting up manufacturing units, propelling the rise in production of machine tools owing to its surging demand.

The report begins with the introduction section which offers a brief description of machine tools along with the names of major machine tools that are manufactured in India. After this, a brief insight about how the industry is related to the manufacturing sector and other strategic sectors of the country is provided. It is then followed by the classification of the machine tool industry based on different criterions. It then moves to the market overview section which provides an overview of the global machine tool industry with details about major manufacturing nations, country wise production, consumption and India’s share in total consumption. The next section provides an insight about the Indian machine tool industry highlighting the market size and growth. It also provides information regarding domestic production and its growth over the years. In addition to this, segmentation of the industry based on portfolio of

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Market Research Report : Machine Tools Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortMachine Tools Market –Machine Tools Market IndiaJune 2012
  2. 2. Executive Summary  The global machine tool market witnessed a turnover of INR x1, up by a% y‐o‐y in 20‐‐, including  Market the 28 principal machine tool manufacturing nations  The total market size for machine tools was INR y1 during 20‐‐ Drivers Challenges —Growth of industries using machine tools —Insufficient production  Drivers &  —Strong  supporting industries‐ Foundry & Castings capacity  Challenges —Abundance of key raw materials —Lack of proper funding y p —Availability of skilled and cheap labour force —Lack of investment in R&D —Consistent supply of skilled manpower —Regulatory challenges  Credit Linked capital Subsidy Scheme for Technology UpgradationGovernment   National manufacturing Competitiveness Programme (NMCP) Initiatives  Quality Upgradation/ Environment management for small scale sector Quality Upgradation/ Environment management for  small  scale sector  Exhibitions to develop trade  India Increased focus towards India for developing machine tools Trends  Transformation towards multitasking technology  Usage of IT Major PlayersCompetition Company A Company B Company C Company D Company E Company F MACHINE TOOLS MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview M k tO i•Import & Export•Drivers & Challenges•Government Initiatives•Trends Competition•Competition•Strategic Recommendations•Appendix MACHINE TOOLS MARKET IN INDIA 2012.PPT 3
  4. 4. China dominates the global machine tool market both in terms of production and consumptionGlobal Machine Tools Market – Overview• The global machine tool production in 20‐‐ was estimated to be INR x1, a growth of a1% over the previous year,  including the 28 principal machine tool manufacturing nations• In terms of production in 20‐‐, China ranked first holding a share of a2% of the total world production, followed by  Japan, Germany, Italy, Korea, Taiwan and USA• On consumption side as well China ranked first with a share of a3% of the overall world consumption in 20‐‐, followed  by Japan and then by Germany and USA, then came Korea finally followed by Italy and India by Japan and then by Germany and USA, then came Korea finally followed by Italy and India • India’s share in terms of consumption was a4% of the overall global consumption for the year 20‐‐ Production of Machine Tools (20‐‐) Consumption of Machine Tools (20‐‐) p1 m8 p2 p8 p7 m6 m7 m1 p6 m5 P5 m4 p4 p3 m3 m2 A C E G A B C D B D F H E F G H MACHINE TOOLS MARKET IN INDIA 2012.PPT 4
  5. 5. The Indian manufacturing sector’s growth  is triggering the consistent growth of the machine tool market in IndiaIndian Machine Tool Market – Overview (1/2) • Machine Tool Industry is considered as the major feeder for the entire capital goods sector as it provide Machine Tool Industry is considered as the major feeder for the entire capital goods sector as it provide  machineries for the entire manufacturing sector  Manufacturing sector accounts for a5% of the industrial output and it grew by a6% during the year 20‐‐, reflecting a direct  effect on the growth of the machine tool sector in the coming years • Machine tools market is expected to reach INR x2 growing at a CAGR of a6% during 20 to 20 e period Machine tools market is expected to reach INR x2, growing at a CAGR of a6% during 20‐‐ to 20‐‐e period Market Size & Growth Market Size & GrowthINR units250 x10 a2 x9200 x8 x7150 a1 x6 x5 x4100 x1 x2 x350 0 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ MACHINE TOOLS MARKET IN INDIA 2012.PPT 5
  6. 6. Gap between demand and supply of machine tools is leading to import dependency in order to bridge the gapImports Imports (Value)• India has witnessed a rise in imports owing to the  INR units a3 x4 rise in demand from the used segments of machine  rise in demand from the used segments of machine 15,000 , x2 tools x3 10,000 x1• The import during 20‐‐ was recorded to be INR x3 5,000• Italy, Germany, Japan and China are among the top  0 importers in the recent years 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ 20‐‐ ‐ ‐‐ Major importing nations (20‐‐)  Major importing nations (20‐‐) A A m1 pi B B p6 m6 C C m2 D D p2 E E m3 F p5 F m5 p4 p3 m4 Note: Machine Tool comes under the HS Code 8459, including way‐type unit head machines for drilling, boring, milling, threading/taping by removing metal,  excluding lathes of hdg no 8458 MACHINE TOOLS MARKET IN INDIA 2012.PPT 6
  7. 7. Drivers & Challenges – Summary  Challenges Drivers Insufficient production capacity  Growth of industries using machine  Growth of industries using machine tools Lack of proper funding Strong supporting industries‐ Foundry  & Castings Lack of investment in R&D Abundance of key raw materials Regulatory challenges Availability of cheap labour force Consistent supply of skilled manpower MACHINE TOOLS MARKET IN INDIA 2012.PPT 7
  8. 8. Trends – Summary  Increased focus towards India for  Exhibitions to promote trade developing machine tools Key  Trends Usage of IT Transformation towards  multitasking technology MACHINE TOOLS MARKET IN INDIA 2012.PPT 8
  9. 9. Public: Domestic Company – Company A (1/3)Company Information Offices and Centres – India  Company A, Street ACorporate Address City B State CTel No. 91 124 7239Fax No. 91 124 4734111Website Year of Incorporation 1767Ticker Symbol 123456Stock Exchange ABC Head Office City BProducts and ServicesProducts and ServicesCategory Products/Services Key People Name N Designation D i ti Threading tools, carbide tools, spring  Person A MD, CEO locked washer, marking solutions, Engineering energy solutions, integrated power  Person B. Director solutions from turbine, generator,  Person C Director synchronization panel synchronization panel Person D Director MACHINE TOOLS MARKET IN INDIA 2012.PPT 9
  10. 10. Public: Domestic Company – Company A  (2/3) Financial Snapshot i i lS h Key Ratios K i y‐o‐y change  Total Income Net Profit/Loss Particulars  2011 2010 2009 2008 INR units INR units (2011‐10)20,000 c d 500 Profitability Ratios a b Operating Margin15,00015 000 Net Margin 010,000 Profit Before Tax Margin R3 R4 -500 Return on Equity 5,000 R1 R2 Return on Capital Employed 0 -1,000 Return on Working Capital 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets Financial Summary  Return on Fixed Assets Cost Ratios The company incurred a net loss of INR d units in FY 20‐‐, as compared  Operating costs (% of Sales) to net loss of INR c units in FY 20‐‐ Administration costs (% of  The company reported total income of INR R4 units in FY 20‐‐,  Sales) Interest costs (% of Sales) Interest costs (% of Sales) registering an increase of m% over FY 20‐‐ it i i f % FY 20 The company earned an operating margin of f% in FY 20‐‐, an increase  Liquidity Ratios Current Ratio of g percentage points over FY 20‐‐ Cash Ratio The company reported debt to equity ratio of d in FY 20‐‐, a decrease  Leverage Ratios of h% over FY 20‐‐ Debt to Equity Ratio Debt to Capital Ratio b i l i Key Financial Performance Indicators Interest Coverage Ratio Indicators Value (dd/mm/yyyy) Efficiency Ratios Market Capitalization (INR mn) u Fixed Asset Turnover Total Enterprise Value (INR mn) Asset Turnover v Current Asset Turnover EPS (INR) EPS (INR) w Working Capital Turnover PE Ratio (Absolute) x Capital Employed Turnover Improved Decline MACHINE TOOLS MARKET IN INDIA 2012.PPT 10
  11. 11. Public: Domestic Company – Company A (3/3)Key Business Segments Key Geographic Segments A B L M N100% X1 X2 X3 X4 100% a1 b1 a2 b2 a3 b3 a4 b450% Y1 Y2 Y3 Y4 50% c1 c2 c3 c4 0% 0% 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Business HighlightsDescription  NewsOverview • It is world’s one of the oldest companies and is engaged in three segments‐ x, y,z • Bagged three projects which requires advanced level of engineering design and construction worth INR Collaborations x4 in total with X Ltd, Y Ltd and Z Ltd , MACHINE TOOLS MARKET IN INDIA 2012.PPT 11
  12. 12. AppendixRatio 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  q y Debt to Equity  (Net Income / Shareholders  (N I / Sh h ld Equity  E itReturn 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)  (N I / W ki C i l)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 Interest Costs (% of Sales) (Interest Expenses / Sales) *100  Capital Employed Turnover  Sales / Shareholders Equity  / MACHINE TOOLS MARKET IN INDIA 2012.PPT 12
  13. 13. Sources of Information Secondary Research Primary Research Print Medium InterviewsLeading NewspapersLeading Newspapers Leading Industry Vendors Leading Industry VendorsJournals / Magazines Industry StakeholdersBusiness Magazines Industry Experts  Electronic Medium Surveys Conducted in Social / Technology Focused  ForumsCompany WebsitesGovernment Websites / ResourcesOnline Magazines /Online Journals / ArticlesPremium DatabasesSocial Networking Space MACHINE TOOLS MARKET IN INDIA 2012.PPT 13
  14. 14. Thank you for the attentionMachine Tools Market – India report is part of Netscribes’ Manufacturing Industry Series. For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214 91 33 4064 6214E‐Mail: sales@netscribes.comFollow us on:About 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 in the preparation,  Netscribes isDisclaimer: 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. MACHINE TOOLS MARKET IN INDIA 2012.PPT 14