Agricultural Equipment – India
January 2015
2
Executive Summary
Drivers:
 Improved Availability of Credit
 Lower Penetration of Farm Equipment
 Emergence of Contract Farming
 Increased Agricultural Production Targets
 Increased Agricultural Export
 Growth in FDI Inflow in Agriculture
 Increase in Productivity of Fruits and Vegetables
Market
Overview
Drivers &
Challenges
Key Trends
Competitive
Landscape
 Global agricultural equipment market is expected to grow at a CAGR of x% through 20-- to 20-- to reach INR yy bn
in 20--
 Huge demand from Asia Pacific region will boost the industry’s growth
 Indian agricultural equipment market is expected to reach INR zz bn in 20--, growing at a CAGR of q%
 Evolution of Gender Friendly Equipment
 Focus on Agricultural Services
Challenges:
 Fragmentation of Land
 High Cost of Equipment
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Key Players
Company A Company B Company C
Company D Company E Company F
3AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
•Macroeconomic Indicators
•Introduction
•Market Overview
•Export-Import
•Direct Investment Scenario
•Drivers & Challenges
•Government Initiatives
•Trends
•Competitive Landscape
•Opportunities
•Strategic Recommendations
•Appendix
4
SAMPLE
• Global agricultural equipment market is expected to grow at a CAGR of p% through 20-- to 20-- to reach INR ‘xx’ bn in
20--
• Asia Pacific region is expected to show the strong growth fuelled by huge demand from India and China
• Economic expansion, growth in population, increasing per capita food consumption in the developing and emerging
countries would further boost the demand for farm mechanization
• Demand in developed markets would be driven by the use of technologically advanced precision farming machineries
in order to reduce effort and inputs
Market Overview – Global
y3
y1
0
y2
INR bn
P%
20--
x1
x4
20--20--
x5
20--
x5
20-- 20--
x3x2
Global Agricultural Equipment Market – Size and Growth (Value-wise)
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Huge demand from Asia Pacific region to boost global
agricultural equipment market
5
SAMPLE
Government subsidies and credit availability to boost Indian
agricultural equipment market
• Indian agricultural equipment market accounts for r% of the global agricultural equipment market
• Tractors and tillers are the two major equipment manufactured by the organized sector in India
 Other major agricultural equipment and machineries manufactured in India include harvesters, plant protection equipment, drip
irrigation and micro-sprinkler
• Agricultural equipment market in India is driven by rising credit availability from the government as well as low
penetration levels of tractors
• ‘aa’ medium to large scale units, ‘bb’ small scale and ‘cc’ tiny units are engaged in manufacturing agricultural
equipment
• These units are mainly concentrated in Punjab, Haryana, western Uttar Pradesh, Uttarakhand and Tamil Nadu
Market Overview – India
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Indian Agricultural Equipment Market – Size and Growth (Value-wise)
y3
y1
0
y2
INR bn
P%
20--
x1
x4
20--20--
x5
20--
x5
20-- 20--
x3x2
6
SAMPLEHS Code: 8432(1/4)
Export of Agricultural Machinery for Soil Preparation (Value-Wise)
Export of Agricultural Machinery for Soil Preparation (Volume-Wise)
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
a4
a3
a2
a1
P%
FY 20--
x4
FY 20--
x3
FY 20--
x2
FY 20--
x1
INR mn
b5
b4
b3
b2
b1
mn Q%
FY 20--
y4
FY 20--
y3
FY 20--
y2
FY 20--
y1
7
SAMPLEHS Code: 8432(2/4)
FY20-- FY20--
Exports Based on Volume – Product-WiseExports Based on Value – Product-Wise
z3
z4
z5
z6
z1
z2
q4
q3
q2q5
q1
c2
b2
a2
e2
d2
FY2014 FY2014
Export Based on Value – Country-Wise
a2
b2
d2
c2
f2
e2
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
x2
x6
x5
x4
x3
x1
x7
f1
b1
d1
g1
c1
e1
a1
y4
y1
y2
y3
y5
y6
y7
c1
a1
b1
g1
e1
d1
f1
8
Drivers & Challenges – Summary
Drivers
Improved Availability of Credit
Lower Penetration of Farm Equipment
Emergence of Contract Farming
Increased Agricultural Production
Targets
Increased Agricultural Exports
Growth in FDI Inflow in Agriculture
Increase in Productivity of Fruits and
Vegetables
Challenges
Fragmentation of Land
High Cost of Equipment
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
9
SAMPLE
Increased Agricultural Production Targets (1/5)
Use of farm machinery is driven by growing demand for
food grains
y1
0
y2
y3
Total Oilseed
Mn tons
q2
q1
Foodgrains
p2p1
Total Pulses
z2z1
x2
Total Coarse Cereals
x1
Crop-wise National Production Targets FY 2015
Rabi Kharif
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Impact
• India accounts for only c% of the total geographical area but has to support d% of global
population
• In FY 20--, the total food grain production was tt mn tons of which Kharif crops were rr mn while
the rest were Rabi crops
• Total cereals and pulses production were uu mn tons and vv mn tons respectively
• Growing population in India is leading to an increased demand for food grains, vegetables and
fruits
• Increased agricultural production targets stimulates the use of agricultural machinery
10
Trends
Focus on Agricultural
Services
Evolution of Gender
Friendly Equipment
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
11
SAMPLECompetitive Benchmarking (1/5)
Public Trading Comparables (FY 20--)
Company A Company B Company C
Market Capitalization
(INR mn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio
Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization, Share Price and PE ratio is as on xx/yy/20--
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
12
SAMPLEKey Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/4)
Competitive Benchmarking (2/5)
a2
a1
0
a4
a3
Company C
z3
y3
x3
Company B
z2y2
x2
Company A
Z1
y1
X1
%
Net MarginGross Margin Operating Margin
• Company C recorded gross margin of x3%, higher than both Company A and Company B which recorded gross margins
of x1% and x2% respectively
• Company C recorded highest operating margin of y3%, followed by Company A and Company B which recorded
operating margin of y1% and y2% respectively
• Net margin for all the three company’s are positive, however, Company C recorded the highest net margin of z3% while
Company A and Company B recorded z1% and z2% respectively
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
13
SAMPLE
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
Category Products/Services
Name Designation
Person 1
Person 2
Person 3
Person 4
Head Office
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Public: Domestic Company – Company A (1/4)
14
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company earned a net profit of INR y4 mn in FY 20--, as compared to
net profit of INR y3 mn in FY 20--
• The company reported total income of INR x4 mn in FY 20--, registering an
increase of p% over FY 20--
• The company earned an operating margin of z1% in FY 20--, an increase of
z2 percentage points over FY 20--
• The company reported debt to equity ratio of d1 in FY 20--, an increase of
d2% over FY 20--
Key Financial Performance Indicators
Indicators Value
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Particulars
y-o-y change
(2014-13)
2014 2013 2012 2011
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
b4
b3
b2
b1
a4
a3
a2
a1
y3
x3
y2
x2
20--
y1
x1
INR mnINR mn
y4
x4
20--20--20--
Public: Domestic Company – Company A (2/4)
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
15
SAMPLEKey Business Segments Key Geographic Segments
Business Highlights
Category Description
Overview
• Company A Ltd. Is engaged in manufacturing, designing and developing small and light commercial vehicles, sports
and multi utility vehicles and agricultural tractors.
• Operates in more than ‘v’ countries including Germany, Nepal, Bangladesh, Thailand, Indonesia, Ethiopia, Morocco
and Sudan
Exports • Export sales increased from INR ‘c’ mn in FY 20-- to INR ‘d’ mn in FY 20--
R&D • In FY 20--, expenditure on R&D was q% of the revenue from operations
Collaborations • Received technical assistance from ‘X’ Ltd. for upgradation of transmissions
100%
50%
0%
2014
100%
100%
50%
0%
20122011
100% 100%
Auto Manufacturers
Company has been earning
revenue from a single
segment for the last four
financial years
India
The data for 2013 and
2014 were not
available
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Public: Domestic Company – Company A (3/4)
16
SAMPLE
TO
WS
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
Public: Domestic Company – Company A (4/4)
17
Opportunity Areas
Bihar Punjab Maharashtra Karnataka
Opportunity Areas – Summary
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
18
SAMPLE
x
y
z
Strategic Recommendations (1/2)
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
19
Thank you for the attention
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.
Agricultural Equipment Market– India report is part of Netscribes’ Manufacturing Industry
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
AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT

Market Research Report : Agricultural equipment market in india 2015 - Sample

  • 1.
    Agricultural Equipment –India January 2015
  • 2.
    2 Executive Summary Drivers:  ImprovedAvailability of Credit  Lower Penetration of Farm Equipment  Emergence of Contract Farming  Increased Agricultural Production Targets  Increased Agricultural Export  Growth in FDI Inflow in Agriculture  Increase in Productivity of Fruits and Vegetables Market Overview Drivers & Challenges Key Trends Competitive Landscape  Global agricultural equipment market is expected to grow at a CAGR of x% through 20-- to 20-- to reach INR yy bn in 20--  Huge demand from Asia Pacific region will boost the industry’s growth  Indian agricultural equipment market is expected to reach INR zz bn in 20--, growing at a CAGR of q%  Evolution of Gender Friendly Equipment  Focus on Agricultural Services Challenges:  Fragmentation of Land  High Cost of Equipment AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT Key Players Company A Company B Company C Company D Company E Company F
  • 3.
    3AGRICULTURAL EQUIPMENT MARKETIN INDIA 2015.PPT •Macroeconomic Indicators •Introduction •Market Overview •Export-Import •Direct Investment Scenario •Drivers & Challenges •Government Initiatives •Trends •Competitive Landscape •Opportunities •Strategic Recommendations •Appendix
  • 4.
    4 SAMPLE • Global agriculturalequipment market is expected to grow at a CAGR of p% through 20-- to 20-- to reach INR ‘xx’ bn in 20-- • Asia Pacific region is expected to show the strong growth fuelled by huge demand from India and China • Economic expansion, growth in population, increasing per capita food consumption in the developing and emerging countries would further boost the demand for farm mechanization • Demand in developed markets would be driven by the use of technologically advanced precision farming machineries in order to reduce effort and inputs Market Overview – Global y3 y1 0 y2 INR bn P% 20-- x1 x4 20--20-- x5 20-- x5 20-- 20-- x3x2 Global Agricultural Equipment Market – Size and Growth (Value-wise) AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT Huge demand from Asia Pacific region to boost global agricultural equipment market
  • 5.
    5 SAMPLE Government subsidies andcredit availability to boost Indian agricultural equipment market • Indian agricultural equipment market accounts for r% of the global agricultural equipment market • Tractors and tillers are the two major equipment manufactured by the organized sector in India  Other major agricultural equipment and machineries manufactured in India include harvesters, plant protection equipment, drip irrigation and micro-sprinkler • Agricultural equipment market in India is driven by rising credit availability from the government as well as low penetration levels of tractors • ‘aa’ medium to large scale units, ‘bb’ small scale and ‘cc’ tiny units are engaged in manufacturing agricultural equipment • These units are mainly concentrated in Punjab, Haryana, western Uttar Pradesh, Uttarakhand and Tamil Nadu Market Overview – India AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT Indian Agricultural Equipment Market – Size and Growth (Value-wise) y3 y1 0 y2 INR bn P% 20-- x1 x4 20--20-- x5 20-- x5 20-- 20-- x3x2
  • 6.
    6 SAMPLEHS Code: 8432(1/4) Exportof Agricultural Machinery for Soil Preparation (Value-Wise) Export of Agricultural Machinery for Soil Preparation (Volume-Wise) AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT a4 a3 a2 a1 P% FY 20-- x4 FY 20-- x3 FY 20-- x2 FY 20-- x1 INR mn b5 b4 b3 b2 b1 mn Q% FY 20-- y4 FY 20-- y3 FY 20-- y2 FY 20-- y1
  • 7.
    7 SAMPLEHS Code: 8432(2/4) FY20--FY20-- Exports Based on Volume – Product-WiseExports Based on Value – Product-Wise z3 z4 z5 z6 z1 z2 q4 q3 q2q5 q1 c2 b2 a2 e2 d2 FY2014 FY2014 Export Based on Value – Country-Wise a2 b2 d2 c2 f2 e2 AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT x2 x6 x5 x4 x3 x1 x7 f1 b1 d1 g1 c1 e1 a1 y4 y1 y2 y3 y5 y6 y7 c1 a1 b1 g1 e1 d1 f1
  • 8.
    8 Drivers & Challenges– Summary Drivers Improved Availability of Credit Lower Penetration of Farm Equipment Emergence of Contract Farming Increased Agricultural Production Targets Increased Agricultural Exports Growth in FDI Inflow in Agriculture Increase in Productivity of Fruits and Vegetables Challenges Fragmentation of Land High Cost of Equipment AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
  • 9.
    9 SAMPLE Increased Agricultural ProductionTargets (1/5) Use of farm machinery is driven by growing demand for food grains y1 0 y2 y3 Total Oilseed Mn tons q2 q1 Foodgrains p2p1 Total Pulses z2z1 x2 Total Coarse Cereals x1 Crop-wise National Production Targets FY 2015 Rabi Kharif AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT Impact • India accounts for only c% of the total geographical area but has to support d% of global population • In FY 20--, the total food grain production was tt mn tons of which Kharif crops were rr mn while the rest were Rabi crops • Total cereals and pulses production were uu mn tons and vv mn tons respectively • Growing population in India is leading to an increased demand for food grains, vegetables and fruits • Increased agricultural production targets stimulates the use of agricultural machinery
  • 10.
    10 Trends Focus on Agricultural Services Evolutionof Gender Friendly Equipment AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
  • 11.
    11 SAMPLECompetitive Benchmarking (1/5) PublicTrading Comparables (FY 20--) Company A Company B Company C Market Capitalization (INR mn) Share Price (INR) EV/EBITDA (x) EV/Revenue (x) PE Ratio Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization, Share Price and PE ratio is as on xx/yy/20-- AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
  • 12.
    12 SAMPLEKey Ratios ofTop 3 Companies – Operational Basis (FY 2014) (1/4) Competitive Benchmarking (2/5) a2 a1 0 a4 a3 Company C z3 y3 x3 Company B z2y2 x2 Company A Z1 y1 X1 % Net MarginGross Margin Operating Margin • Company C recorded gross margin of x3%, higher than both Company A and Company B which recorded gross margins of x1% and x2% respectively • Company C recorded highest operating margin of y3%, followed by Company A and Company B which recorded operating margin of y1% and y2% respectively • Net margin for all the three company’s are positive, however, Company C recorded the highest net margin of z3% while Company A and Company B recorded z1% and z2% respectively AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
  • 13.
    13 SAMPLE Key People Products andServices Company Information Offices and Centres – India Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Category Products/Services Name Designation Person 1 Person 2 Person 3 Person 4 Head Office AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT Public: Domestic Company – Company A (1/4)
  • 14.
    14 SAMPLEFinancial Snapshot KeyRatios Financial Summary • The company earned a net profit of INR y4 mn in FY 20--, as compared to net profit of INR y3 mn in FY 20-- • The company reported total income of INR x4 mn in FY 20--, registering an increase of p% over FY 20-- • The company earned an operating margin of z1% in FY 20--, an increase of z2 percentage points over FY 20-- • The company reported debt to equity ratio of d1 in FY 20--, an increase of d2% over FY 20-- Key Financial Performance Indicators Indicators Value Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute) Particulars y-o-y change (2014-13) 2014 2013 2012 2011 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 b4 b3 b2 b1 a4 a3 a2 a1 y3 x3 y2 x2 20-- y1 x1 INR mnINR mn y4 x4 20--20--20-- Public: Domestic Company – Company A (2/4) AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
  • 15.
    15 SAMPLEKey Business SegmentsKey Geographic Segments Business Highlights Category Description Overview • Company A Ltd. Is engaged in manufacturing, designing and developing small and light commercial vehicles, sports and multi utility vehicles and agricultural tractors. • Operates in more than ‘v’ countries including Germany, Nepal, Bangladesh, Thailand, Indonesia, Ethiopia, Morocco and Sudan Exports • Export sales increased from INR ‘c’ mn in FY 20-- to INR ‘d’ mn in FY 20-- R&D • In FY 20--, expenditure on R&D was q% of the revenue from operations Collaborations • Received technical assistance from ‘X’ Ltd. for upgradation of transmissions 100% 50% 0% 2014 100% 100% 50% 0% 20122011 100% 100% Auto Manufacturers Company has been earning revenue from a single segment for the last four financial years India The data for 2013 and 2014 were not available AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT Public: Domestic Company – Company A (3/4)
  • 16.
    16 SAMPLE TO WS AGRICULTURAL EQUIPMENT MARKETIN INDIA 2015.PPT Public: Domestic Company – Company A (4/4)
  • 17.
    17 Opportunity Areas Bihar PunjabMaharashtra Karnataka Opportunity Areas – Summary AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT
  • 18.
  • 19.
    19 Thank you forthe attention 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. Agricultural Equipment Market– India report is part of Netscribes’ Manufacturing Industry 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 AGRICULTURAL EQUIPMENT MARKET IN INDIA 2015.PPT