For the complete report, get in touch with us at : info@netscribes.com The new report, ‘Lead-Acid Battery Market in India’, states that the battery market in India is experiencing rising demand from various sectors, thereby providing immense opportunities to manufacturers to grow and operate in the market lucratively. Steadily growing automobile sector and rising need for power backup is primarily aiding growth in the lead-acid battery market. The replacement market for batteries has also been growing considerably and is mostly served by smaller firms. They function mostly in the semi-urban and rural areas, catering to the battery needs of old automobiles, tractors and other farm equipments. The need for uninterrupted power in various industries such as telecom, banking and hospitality has resulted in the strong growth of industrial batteries. Another area from where the market has been facing high demand is the renewable energy market where batteries are required to store the energy generated from renewable sources.

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Lead Acid Battery Market IndiaLead Acid Battery Market – India
May 2013

2. Executive Summary
Market
Lead‐acid battery market in India was pegged at INR ‘b’ bn in 2012 and is expected to grow at a
CAGR of x% till 2017
There are two types of batteries available in the market, Type 1 batteries and Type 2 batteries,
ith th f h i i ifi tl hi h k t h
Drivers &
with the former having a significantly higher market share
Drivers:
 Growing automotive industry
 Increasing demand for power backup
Challenges:
 Polluting and toxic nature of lead
 Threat from other types of batteries
Challenges  Booming renewable energy sector
 Recycling efficiency
 Lucrative replacement market
 Volatility in lead prices
 Large unorganized segment
 Batteries (Management and Handling) Rules, 2001
 Procedure for registration/renewal of
g g
 Customs clearance of imports of new lead acid
batteries
 Responsibilities of dealer
 Responsibilities of manufacturer, importer, assembler
and re‐conditioner
Government
Regulation
 Procedure for registration/renewal of
registration of recyclers
 Responsibilities of recycler
 Responsibilities of auctioneer
 Responsibilities of consumer or bulk consumer
Competitive
Landscape
Major Public Players Major Private Players
Company 1 Company 3 Company 5
2LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
Company 2 Company 4 Company 6

3. •Economic Indicators
•Introduction
•Market Overview
•Drivers & Challenges
•Government RegulationGovernment Regulation
•Competitive Landscape
•Strategic Recommendations•Strategic Recommendations
•Appendix
3LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT

4. Economic Indicators (1/3)
a2a1
INR tn
14
b4
c4b3
GDP at Factor Cost: Quarterly
d3
a2
b2
c2
d2
a1
b1
c1
d1
13
12
11
d4
c3
Q2Q1
10
Q4Q3
2012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0 8
1.0
%
ca
0.2
0.4
0.6
0.8
edb
4
0.0
Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012Sep 2012 ‐ Oct 2012Aug 2012 ‐ Sep 2012Jul 2012‐ Aug 2012

5. Lead‐acid battery market in India is progressing at a steady
rate due to growing demand across sectors
Market Overview – Lead‐Acid Batteries Market Size and Growth (Value‐Wise)
• Lead‐acid battery market in India has been exhibiting
steady growth rates for the past few years 400
INR bn
%
h
• Market comprises two major segments, Type 1
batteries and Type 2 batteries
 Type 1 batteries constitute a larger share of the overall
market
100
200
300
x%
d
f
g
c
b
a
 However, Type 2 batteries which are currently exhibiting a
better growth rate than Type 1 are expected to narrow the
gap within a few years
• Indian market is duopolistic in nature with the top 2
players Company 1 and Company 2 controlling ~90%
Market Segmentation (Value‐Wise)
0
2011 2012 2013e 2014e 2015e 2017e2016e
players, Company 1 and Company 2, controlling 90%
of the organized market
 Industry enjoys strong pricing power due to its inherent
duopolistic nature
 Passenger vehicle space is dominated by Company 1 and
Type 1 Type 2
g p y p y
Company 2 due to their strong tie‐ups with recognized
international players
 Unorganized players dominate the lower end of the
replacement market (commercial vehicles and tractors)
due to the price sensitive nature of the segment
p1%
q1%
q2%
p2%
5LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
due to the price sensitive nature of the segment
2012 2017e

6. Drivers & Challenges – Summary
D i
Challenges
Polluting and toxic nature of lead
Drivers
Growing automotive industry
Increasing demand for power backup
g
Threat from other types of batteries
Volatility in lead prices
Increasing demand for power backup
Booming renewable energy sector
Recycling efficiency
Large unorganized segment
Lucrative replacement market
6LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT

7. Government Regulation – Summary
Batteries (Management and Handling) Rules, 2001
C t l f i t f l d id b tt i
Responsibilities of dealer
Customs clearance of imports of new lead acid batteries
`
Government
Regulations
Responsibilities of manufacturer, importer, assembler and re‐conditioner
Procedure for registration/renewal of registration of recyclers
g
Responsibilities of recycler
Responsibilities of auctioneer
7LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
Responsibilities of consumer or bulk consumer

8. Competitive Benchmarking (2/5)
Key Ratios of Top 3 Companies – Operational Basis (FY 2012) (1/3)
40
% Net MarginOperating MarginGross Margin
10
20
30
40
b3
a3
c2
b2
a2
c1
b1
a1
0
Company 3
c3
Company2Company 1
• Company 3 recorded gross margin of a3%, higher than both Company 1 and Company 2 which recorded gross margin of p y g g , g p y p y g g
a1% and a2% respectively
• Company 2 recorded operating margin of b2%, higher than that of Company 3 which recorded operating margin of b3%
but lower than that of Company 1 which recorded operating margin of b1%
• Company 1 recorded the highest net margin of c1% followed by Company 2 which recorded net margin of c2% and
Company 3 which recorded net margin of c3%
8
Company 3 which recorded net margin of c3%
LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT

9. Major Public Companies – Summary
5,000
5,500
Net Profit/Loss Size of the Bubble represents Market
Capitalization in INR mn
3,500
4,000
4,500 c
2,000
2,500
3,000
b
500
1,000
1,500
a
0
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000
Total income
a
Company 3Company 2Company 1
9LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
Note: All figures are in INR mn and are based on FY 2012: Market Capitalization as on 18/03/2013
Company 3Company 2Company 1

10. Public: Domestic Company – Company 1
(1/4)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Products and Services
Ticker Symbol
Stock Exchange
Hyderabad
Head Office
Key People
Products and Services
Category Products/Services
N D i tiName Designation
Person 1 M.D.
Person 2 C.F.O.
Person 3 Director
10LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
Person 4 Director

11. i i l S h K i
Public: Domestic Company – Company 1
(2/4)
Financial Snapshot Key Ratios
Particulars
y‐o‐y change
(2012‐11)
2012 2011 2010 2009
Profitability Ratios
Operating Margin
Net Profit/LossTotal Income INR bn
3
INR bn
30
b2 2
d2
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
2
1
0
20
10
0
2012
a2
d1
2011
b2
c1
2010
c2
b1
2009
a1
Financial Summary
• The company incurred a net profit of INR X mn in FY 20XX, as
compared to net profit of INR Y mn in FY 20YY
• The company reported total Income of INR XX mn in FY 20XX,
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
registering an increase of X per cent over FY 20YY
• The company earned an operating margin of X.X per cent in FY
20XX, an increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX,
a decrease of X.X per cent over FY 20YY
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
b i l i
a decrease of X.X per cent over FY 20YY
Key Financial Performance Indicators
Indicators Value (18/03/2013)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
11LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Working Capital Turnover
Capital Employed Turnover
Improved Decline

12. Public: Domestic Company – Company 1
(3/4)
Key Business Segments Key Geographic Segments
100%
Segment2Segment 1
100%
Region 2Region 1
0%
50%
100%
a1% c1% d1%
c2%
b1%
b2% d2%a2% 0%
50%
100%
v2%u2% w2%
y1%
y2%
u1% w1%v1%
Business Highlights
0%
2010 2011
c2%
2009
b2% d2%a2%
2012
0%
2010 2011
% % y2%
2009 2012
Description News
Overview
• The company is into sale of lead acid storage batteries for industrial and automotive applications
• It created Asia’s largest, single location, vertically‐integrated battery manufacturing facility accredited for
ISO 9001:2000, ISO/TS 16949 (certified by TUV NORD), ISO 14001 and OHSAS18001‐ 2007
• Type 1 batteries constitute~55% of its revenues while Type 2 batteries account for the remaining• Type 1 batteries constitute 55% of its revenues while Type 2 batteries account for the remaining
Collaborations • The company has a collaboration with Company A, USA
Expansion Plans
• The company has finalized plans for setting up a geenfield batteries plant with an investment outlay of
INR 1900 mn
• It will soon join the original vehicle (OV) bandwagon after establishing a substantial market share in the
12LEAD‐ACID BATTERY MARKET IN INDIA 2013.PPT
j g ( ) g g
replacement market

13. Public: Domestic Company – Company 1 – SWOT
Analysis (4/4)
WS
TO
13

14. Thank you for the attention
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