Security Equipment and Services Market – India
July 2014
2
Executive Summary
Market
Overview
Security equipment and services market in India was valued at INR xxx bn in 20-- and ...
3
•Macro Economic Indicators
•Introduction
•Market Overview
•Types of Products
•Market Entry Strategy
•Vendor Opportunity
...
4
Increasing security awareness among both end users and
corporate establishments is largely pushing the market
• Fast spr...
5
Electronic Security Equipment (x/x)
• The overall electronic security equipment segment has shown significant growth in ...
6
SAMPLEElectronic Security Equipment (x/x)
Accounts for
nearly xx% of
Indian imports
Emerging threat to xxx
manufacturers...
7
• Entry of foreign players and the growing demand for
private security services across corporate houses,
retail establis...
8
Drivers & Challenges – CCTV and Other Equipment
Drivers
Government Demand
Corporate Demand
Booming Real-estate Sector
Ch...
9
SAMPLE
Increasing security breaches and slow government response
will be a major driver for the market
• Terror attacks ...
10
SAMPLExx
Hospital xx xx
Education
Market
xx xx
Shopping
Mall
xx xx
Automated
Teller Machine
xx xx
Special Event xx xx
R...
11
SAMPLECompetitive Benchmarking (x/x)
Public Trading Comparable (FY 20--)
Player 1 Player 2 Player 3 Player 4
Market Cap...
12
SAMPLEKey Ratios of Major 4 Companies – Operational Basis (FY 20--) (x/x)
Competitive Benchmarking (x/x)
• xxx
8.537.05...
13
SAMPLE
Key People
Products and Services
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
S...
14
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of negative INR 321.8 mn in F...
15
SAMPLE
100%100%100%100%
0%
50%
100%
2013201220112010
97% 94%97%95%
0%
50%
100%
2013
6%
2012
3%
2011
3%
2010
5%
Business...
16
SAMPLE
Description News
Business Highlights (x/x)
Public: Domestic Company – Player 1 (x/x)
SECURITY EQUIPMENT AND SERV...
17
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WSStrength Weakness
Opportunity Threat
Public: Domestic Company – Player 1 (x/x)
SECUR...
18
SAMPLEPrivate: Domestic Company – Player 2 (x/x)
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Compan...
19
SAMPLE
Name No. of Shares held
Total 22,000,000
100.00%
Directors or Relatives of Directors
Note: Shareholding pattern ...
20
SAMPLEPrivate: Domestic Company – Player 2 (x/x)
Financial Snapshot Key Ratios
Financial Summary
• The company incurred...
21
SAMPLEPrivate: Domestic Company – Player 2 (x/x)
Description News
Business Highlights
SECURITY EQUIPMENT AND SERVICES M...
22
SAMPLE
• xxx • xxx
• xxx• xxx
TO
WS
Private: Domestic Company – Player 2 (x/x)
Strength Weakness
Opportunity Threat
SEC...
23
Thank you for the attention
About Netscribes, Inc.
Netscribes, Inc. is a knowledge-consulting and solutions firm with c...
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Market Research Report : Security Equipment and Services Market in India 2014 - Sample

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Market Research Report : Security Equipment and Services Market in India 2014 - Sample

  1. 1. Security Equipment and Services Market – India July 2014
  2. 2. 2 Executive Summary Market Overview Security equipment and services market in India was valued at INR xxx bn in 20-- and is expected to attain a CAGR of xx% to reach INR xxx bn by the end of 20-- Currently, the market can be broadly segregated into CCTV & other equipment, electronic access control, IT security and private security service segments Drivers and Challenges Competitive Landscape Major Security Equipment and Services Vendors Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 Player 7 Player 8 CCTV and other Equipment  Drivers  Government Demand  Corporate Demand  Booming Real-estate Sector  Challenges  High Duty and Taxation Structure  Competition from Un- organized Sector Electronic Access Control  Drivers  Increasing Security Breaches  Demand for Upcoming Government Projects  Economic Growth and Rise in Employable Population  Demand for Better Security from R&D Centers  Challenges  Lack of Awareness  Lack of end-to-end solution providers Private Security Services  Drivers  Insufficient Police Protection  Cost of Electronics  Challenges  Lack of Proper Training  Firearms not Allowed SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  3. 3. 3 •Macro Economic Indicators •Introduction •Market Overview •Types of Products •Market Entry Strategy •Vendor Opportunity •Drivers and Challenges •Future Outlook •Competitive Landscape •Strategic Recommendations •Appendix SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  4. 4. 4 Increasing security awareness among both end users and corporate establishments is largely pushing the market • Fast spreading awareness about the necessity and usefulness of electronic security equipment, coupled with the increased demand for manpower security, is fueling the growth of the overall market • CCTV and Electronic Access Control will continue to dominate the electronic security equipment segment  Growth drivers such as government regulations, growing real estate and the booming corporate sector will primarily boost this segment • Security services market will also greatly benefit from the on-going and future establishments of large corporations and real estate based developments within the country Security Equipment and Services Market Overview – India a b c d e 0 INR bn xx% xx% 2018e xxx xxx 2017e xxx xxx 2016e xxx xxx 2015e xxx xxx 2014e xxx xxx 2013 xxx xxx Security Equipments and Services Market Size – India Segment 2Segment 1 SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  5. 5. 5 Electronic Security Equipment (x/x) • The overall electronic security equipment segment has shown significant growth in the past couple of years in India so far and the segment is further expected to grow at a CAGR of about xx% during 2013 to 2018, to reach an estimated market size of INR xxx bn • Competition in the market is stiff, wherein majority of the players can be classified under the unorganized sector  Although, the unorganized sector has a large presence, nevertheless it caters to a mere xx% - xx% of the total Indian market, whereas on the other hand, players from the organized sector dominate more than xx% of the market  The primary reason for this is the emergence of system integrators and value providers, which is mainly controlled by the organized sector • Some of the major challenges identified include currency fluctuations, high ownership cost and price sensitivity among others Electronic Security Equipment – Segmentation xx xx xx 2013 xx xx xx 2015e xx xx xx 2018e Segment 3Segment 2Segment 1 Note: xxx SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  6. 6. 6 SAMPLEElectronic Security Equipment (x/x) Accounts for nearly xx% of Indian imports Emerging threat to xxx manufacturers from cheaper xxx goods • The US, UK, Germany, Japan and Israel happen to be the major xxx to India • High dependence on xxx since xxx is low and concentrated on xxx, xxx, primarily because most Indian firms have xxx and limited xxx • Due to technological advancement made in foreign countries, it is unviable for new Indian companies to start indigenous development from scratch and invest large amounts of capital required for product development xxx is major source of smuggled goods for grey market Exporters from xxx, xxx, xxx and xxx compete on price Israel Major xxx Minor xxx U.K. Germany Japan SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  7. 7. 7 • Entry of foreign players and the growing demand for private security services across corporate houses, retail establishments and residential complexes are the major growth drivers for the segment  The current trend of global players buying smaller domestic players in India has greatly increased the liquidity in the market – In 2010, International Service System acquired 49% of SDB Cisco – Recently, the Indian arm of G4S bought Terra Force • Owing to the volume dependent business model, investments made in the market can yield returns as high as xx%, which in turn has attracted a plethora of investors • Currently, the manned security segment accounts for the majority share in the market followed by the cash logistics segment  Players operating in the cash logistics segment carry up to INR xx bn and up to INR xx bn in their vaults a b c d e 0 INR bn xx% 2018e xx 2017e xx 2016e xx 2015e xx 2014e xx 2013 xx Market Segmentation – India (20--) xx xx xx xx xx xxxxxxxxxx Private Security Services Market Size & Growth – IndiaPrivate Security Services Overview – India SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  8. 8. 8 Drivers & Challenges – CCTV and Other Equipment Drivers Government Demand Corporate Demand Booming Real-estate Sector Challenges High Duty and Taxation Structure Competition from Un-organized Players SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  9. 9. 9 SAMPLE Increasing security breaches and slow government response will be a major driver for the market • Terror attacks and the lurking danger of infiltration across major cities in the nation has had a huge impact on the mindset across all quarters of the society including the government, businesses and citizens  Apart from threats along its borders, it also faces significant levels of threat from domestic terror outfits in various parts of the country  This has led to an overhauling of national and state level security infrastructure, thereby proving to be beneficial for the market segment by a large extent • Additionally, crimes such as domestic robbery, theft, motor vehicle theft from apartments have become common in most of the parts of the country, thereby raising the demand for electronic access systems significantly Increasing Security breaches Impact a b c d 0 Auto Theft xxxxxx Burglary xxxxxx Unit Nos xx xx xx xxxx Robbery xxxxxx Preparation and Assembly for Dacoity xxxxxx Dacoity xxxxxx xxxx National Crime Statistics – All India SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  10. 10. 10 SAMPLExx Hospital xx xx Education Market xx xx Shopping Mall xx xx Automated Teller Machine xx xx Special Event xx xx Real Estate xx xx Sector Market Growth Outlook SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  11. 11. 11 SAMPLECompetitive Benchmarking (x/x) Public Trading Comparable (FY 20--) Player 1 Player 2 Player 3 Player 4 Market Capitalization (INR mn) 244.130 329,955.3 4,389,119.1 1,162.5 Share Price (INR) 7.30 10,500 5,591.20 66.05 EV/EBITDA (INR ) -15.4 23.4 11.4 5.4 EV/Revenue (INR) 4.6 3.4 1.9 0.7 PE Ratio N.A. 34.66 18.71 2.83 SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  12. 12. 12 SAMPLEKey Ratios of Major 4 Companies – Operational Basis (FY 20--) (x/x) Competitive Benchmarking (x/x) • xxx 8.537.05 4.15 24.55 2.84 5.94 8.25 0.12 0 5 10 15 20 25 Player 2 Player 3Player 1 Player 4 Inventory Turnover Ratio Debtors Turnover Ratio Note: Assuming all sales are credit sales SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  13. 13. 13 SAMPLE Key People Products and Services Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Name Designation Head Office Hyderabad Category Products/Services Company Information Offices and Centres – India Public: Domestic Company – Player 1 (x/x) SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  14. 14. 14 SAMPLEFinancial Snapshot Key Ratios Financial Summary • The company incurred a net profit of negative INR 321.8 mn in FY 2013, as compared to net profit of negative INR 475.8 mn in FY 2012 • The company reported total income of INR 2163.4 mn in FY 2013, as compared to INR 7946.7 mn in FY 2012 • The company earned an operating margin of negative 31.85% in FY 2013, a decrease of 33.04 percentage points over FY 2012 • The company reported debt to equity ratio of 0.60 in FY 2013, a decrease of 7.50% over FY 2012 Key Financial Performance Indicators Indicators Value (30/04/2014) Market Capitalization (INR) 244.130 Total Enterprise Value (INR) 7015.649 EPS* (USD) N.A. PE Ratio* (USD) N.A. Particulars y-o-y change (2013-12) 2013 2012 2011 2010 Profitability Ratios Operating Margin -33.04 -31.85% 1.19% 17.53% 22.42% Net Margin -8.89 -14.87% -5.99% 12.31% 10.46% Profit Before Tax Margin -20.38 -26.02% -5.64% 11.21% 15.89% Return on Equity 2.38 -7.87% -10.25% 18.58% 16.78% Return on Capital Employed -17.09 -15.33% 1.76% 15.10% 18.86% Return on Working Capital 204.71 187.69% -17.03% 50.51% 67.42% Return on Assets -4.07 -3.55% 0.52% 9.31% 11.40% Return on Fixed Assets -81.18 -73.27% 7.90% 86.56% 50.71% Cost Ratios Operating costs (% of Sales) 46.18 144.96% 98.78% 82.37% 77.41% Administration costs (% of Sales) 6.16 25.67% 19.51% 18.52% 5.32% Interest costs (% of Sales) -26.93 -32.82% -5.89% -6.17% -4.69% Liquidity Ratios Current Ratio 1.97% 0.98 0.96 1.48 1.43 Cash Ratio -33.18% 0.02 0.02 0.02 0.02 Leverage Ratios Debt to Equity Ratio 7.50% 0.60 0.56 0.27 0.30 Debt to Capital Ratio 4.69% 0.38 0.36 0.21 0.23 Interest Coverage Ratio -760.1% 1.37 -0.21 -2.86 -4.82 Efficiency Ratios Fixed Asset Turnover -74.85% 1.63 6.48 4.91 2.24 Asset Turnover -81.50% 0.08 0.43 0.53 0.50 Current Asset Turnover -83.38% 0.11 0.63 0.93 0.89 Working Capital Turnover -70.09% -4.17 -13.96 2.87 2.98 Capital Employed Turnover -78.15% 0.23 1.07 1.18 1.23 Improved Decline Net Profit/LossTotal Income 7946.78931.48232.3 -475.81,099.9 0 5000 10000 -500 0 500 1,000 1,500 INR mnINR mn 2013 -321.8 2163.4 201220112010 860.9 Public: Domestic Company – Player 1 (x/x) SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT *: Data corresponds to 1st May 2014
  15. 15. 15 SAMPLE 100%100%100%100% 0% 50% 100% 2013201220112010 97% 94%97%95% 0% 50% 100% 2013 6% 2012 3% 2011 3% 2010 5% Business Highlights (x/x) Description News Segment 1 Key Business Segments Key Geographic Segments Public: Domestic Company – Player 1 (x/x) Country 1 Country 2 SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  16. 16. 16 SAMPLE Description News Business Highlights (x/x) Public: Domestic Company – Player 1 (x/x) SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  17. 17. 17 SAMPLE • xxx • xxx • xxx• xxx TO WSStrength Weakness Opportunity Threat Public: Domestic Company – Player 1 (x/x) SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  18. 18. 18 SAMPLEPrivate: Domestic Company – Player 2 (x/x) Corporate Address Tel No. Fax No. Website Year of Incorporation Company Information Offices and Centres – India Head Office Hyderabad Key People Products and Services Name Designation Category Products/Services SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  19. 19. 19 SAMPLE Name No. of Shares held Total 22,000,000 100.00% Directors or Relatives of Directors Note: Shareholding pattern as on AGM dated 29th Sep 2011 Private: Domestic Company – Player 2 (x/x) Shareholders of the Company Ownership Structure SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  20. 20. 20 SAMPLEPrivate: Domestic Company – Player 2 (x/x) Financial Snapshot Key Ratios Financial Summary • The company incurred a net profit of INR 10.8 mn in FY 2011, as compared to net profit of INR 35.2 mn in FY 2010 • The company reported total income of INR 316.8 mn in FY 2011, as compared to INR 600.2 mn in FY 2010 • The company earned an operating margin of 5.06% in FY 2011, a decrease of 3.76 percentage points over FY 2010 Particulars y-o-y change (2011-10) 2011 2010 Profitability Ratios Operating Margin -3.76 5.06% 8.83% Net Margin -2.47 3.40% 5.86% Profit Before Tax Margin -3.81 5.07% 8.89% Return on Equity -12.28 4.08% 16.36% Return on Capital Employed -20.06 4.57% 24.63% Return on Working Capital -604.02 14.22% 618.24% Return on Assets -19.95 4.53% 24.48% Return on Fixed Assets -642.38 38.69% 681.07% Cost Ratios Operating costs (% of Sales) 3.77 94.94% 91.17% Administration costs (% of Sales) 18.51 24.77% 6.26% Interest costs (% of Sales) N.A. N.A. N.A. Liquidity Ratios Current Ratio 28.52% 1.36 1.06 Cash Ratio -56.33% 0.64 1.47 Leverage Ratios Debt to Equity Ratio N.A. 0.33 N.A. Debt to Capital Ratio N.A. 0.25 N.A. Interest Coverage Ratio N.A. N.A. N.A. Efficiency Ratios Fixed Asset Turnover -90.09% 7.64 77.12 Asset Turnover -67.74% 0.89 2.77 Current Asset Turnover -80.72% 0.74 3.86 Working Capital Turnover -95.99% 2.81 70.01 Capital Employed Turnover -56.94% 1.20 2.79 Improved Decline Net Profit/LossTotal Income 0 20 40 30 10 800 600 400 200 0 INR mn INR mn 2011 10.8 316.8 2010 35.2 600.2 SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  21. 21. 21 SAMPLEPrivate: Domestic Company – Player 2 (x/x) Description News Business Highlights SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  22. 22. 22 SAMPLE • xxx • xxx • xxx• xxx TO WS Private: Domestic Company – Player 2 (x/x) Strength Weakness Opportunity Threat SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT
  23. 23. 23 Thank you for the attention About Netscribes, Inc. Netscribes, Inc. 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, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Security Equipment and Services Market – India report is part of Netscribes’ Information Technology Series. For any queries or customized research requirements, contact us at: Disclaimer: 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. Phone: +91 22 4098 7600 E-Mail: info@netscribes.com SECURITY EQUIPMENT AND SERVICES MARKET IN INDIA 2014.PPT

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