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SanitarywareMarket India

October2013

ExecutiveSummary
Market
IndiansanitarywaremarketisexpectedtoreachINRhmnin20e,growingataCAGRofx%,fromINRamnin 20 Unorganizedsectoraccountsfor~z%ofthesanitarywaremarketintermsofvolume Drivers: HighIncomeandChangingLifestyle RealEstateBoom ReplacementDemand UntappedMarketPotential IncreasingAwarenessAmongConsumers TotalSanitationCampaign&12thFiveYearPlan(201217) PublicToiletSchemes HousingPolicies 100%FDIinRealEstate PremiumSanitarywareSegment IncreasingForeignPresence EmergenceofConceptWashrooms GreenInitiatives MajorBrands Challenges: RiseinPowerandFuelCosts LargeUnorganizedSector Seasonality

Drivers& Challenges

Government Initiatives

Trends

Competition

Company1

Company2

Company3

Company4

SANITARYWAREMARKETININDIA2013.PPT

EconomicIndicators Introduction MarketOverview SanitationFacilities ExportImport Drivers&Challenges GovernmentInitiatives Trends CompetitiveLandscape StrategicRecommendations Appendix
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EconomicIndicators(1/3)
GDPatFactorCost:Quarterly
INRtn 14 13 12 11 10 Q1 Q2 200910 201011 201112 Q3 201213 Q4 a1 b1 c1 d1 a2 b2 c2 d2 b3 c3 d3 d4 b4 c4

InflationRate:Monthly y
%
1.0 0.8 0.6 0.4 0.2 0.0

Nov2012 Dec2012

Dec2012 Jan2013

Jan2013 Feb2013

Feb2013 Mar2013

Mar2013 Apr2013 4

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Sanitarywarereferstothevariousplumbingfixturessuchas sinksor
SanitarywareProducts(1/2)

Sinks
Types Type1sinks,Type2sinks,Type3sinks,Type4sinks, Type5sinks,sinksfittedonTypeA/TypeB/TypeC cabinets MaterialsUsed Type1,Type2,Type3,Type4,Type5,Type6, Type7,Type8,Type9,Type10

Sinkscanbeplacedoncountertopswhicharemadeofmarbleoronyx,andhaveruggedwaterproofsurfaces Moreover,sinksareintrendastheyhelptoimproveabathroom'sefficiency

Shapes Designer WareSinks Shape1 Shape2 Shape3 Handcraftedsinksin glass,metaland ceramic

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Governmenttargettoprovideadequatesanitationwithin next5yearswillensuresustainedgrowthinthemarket
SanitarywareMarket Overview

Indiansanitarywaremarketaccountsfory%oftheglobalsanitarywareproductionandranksnth interms ofvolumewithintheRegionA Improvedlivingstandardsandincreasingawarenesslevelamongtheconsumershaveresultedinrapid growthofthesanitarywaremarket

INRmn
50,000 40,000 30,000 20,000 10,000 0

MarketSizeandGrowth(ValueWise)
h x% f b c d g

20

20

20

20e

20e

20e

20e

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Asof2011,morethan50%ofthetotalhouseholdsinnine statesweredevoidofbasiclatrinefacilities
BasicAmenitiesScenario LatrineFacility(2011) (1/3)
Percentageofhouseholdshaving State/UnionTerritory State1 State2 State3 State4 State5 State6 State7 State8 State9 State10 State11 Top5statesinIndiaintermsofminimumavailabilityoflatrinefacilitiesin2011
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TotalHouseholds (000)

WaterCloset (%)

PitLatrines (%)

OtherLatrines (%)

NoLatrine (%)

Indiahasbeenwitnessingatradedeficitoverthepasttwo years
Exports
IndiansanitarywareexportsdeclinedbyaCAGRof z%invaluetermsbetweenFY20 andFY20 Thiscouldbeassociatedwiththehighvalueofexport inFY20 asinthefollowing3yearsthevalueof exportshasbeenaroundINR~qmn WhileCountry1hasbeenthelargestexportmarket forsanitarywareintermsofvalueinFY20,the largestexportmarketforsanitarywareintermsof volumeforthesameperiodwasCountry3 RegionWiseExports Value (20)
Country1 i1% a1% Country2 Country3 h1% g1% f1% d1% c1% b1% Country4 Country5 Country6 Country7 Others h2% g2% f2% d2% b2% i2% a2% INRmn
300 200 100 0

Exports(ValueandVolume)
Value z% m2 l1 m1 20 n2 n1 20 p2 p1 20 Volume 000 000Kg
1,500 1,000 500 0

l2

20

RegionWiseExports Volume (20)


Country3 Country2 Country1 Country4 Country5 Country8 c2% Country9 Others

Note:HSCode74182010 Sanitaryware SANITARYWAREMARKETININDIA2013.PPT

Drivers&Challenges Summary

Drivers
HighIncomeandChangingLifestyle RealEstateBoom ReplacementDemand UntappedMarketPotential IncreasingAwarenessAmong Consumers

Challenges g
RiseinPowerandFuelCosts LargeUnorganizedSector Seasonality

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GovernmentInitiatives Summary
Impact

TotalSanitationCampaign p g & 12thFiveYearPlan(201217)

PublicToiletSchemes

HousingPolicies(Urban)

100%FDIinRealEstate

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Trends Summary

GreenInitiatives

PremiumSanitaryware Segment

KeyTrends
Emergenceof ConceptWashrooms

Increasing ForeignPresence

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CompetitiveBenchmarking PublicCompanies(1/5)
KeyRatiosofMajorPublicCompanies OperationalBasis(FY2013)(1/3)
%
50 40 30 20 10 0

GrossMargin a1 a2

OperatingMargin

NetMargin

a3 b1 b2 c1 Company2 c2 b3 Company3

c3 3

Company1

Company p y2recordedg grossmargin g ofa2%, ,higher g thanthatofbothCompany p y1andCompany p y3whichrecordedg gross marginofa1%anda3%respectively Company1recordedoperatingmarginofb1%whichwaslowerthanthatofCompany2whichrecordedoperating marginofb2%,buthigherthanthatofCompany3whichrecordedoperatingmarginofb3% Company2recordedahighernetmarginofc2%comparedtoCompany1andCompany3whichrecordedanet marginofc1% c1 %andc3% c3 %respectively

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CompetitionCurve PublicCompanies
INRmn
15,000

TotalIncome a1

NetProfit/Loss c1

FY20

10,000 5 000 5,000 0

a2 Company1

b b1

b2

c2 Company3

Company2

INRmn
15,000

l1

TotalIncome

NetProfit/Loss n1

FY20

10,000 5,000 0

l2 Company1

m1 m2 Company2 n2 Company3

INRmn
20,000

p1

TotalIncome

NetProfit/Loss r1 q1

FY20

10,000

p2 p
0

q2 Company2

r2 Company3 13

Company1

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Public:DomesticCompany Company1 (1/5)


CompanyInformation
CorporateAddress TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange HeadOffice Gurgaon

OfficesandCentres India

Products
Sanitaryware Products

KeyPeople
N Name Person1 Person2 Person3 Person4 D i ti Designation Executive&NonIndependentChairman JointMD DeputyGeneralManagerofFinance AssistantVP

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Public:DomesticCompany Company1 (2/5)


Financial i i lS Snapshot h
INRmn
20,000 15 000 15,000 10,000 5,000 0

K Ratios Key i
NetProfit/Loss c2 d2 INRmn
1,000 800 600 400 200 0

TotalIncome b2 a2 a1 20 b1

Particulars

yoychange 2013 (201312)

2012

2011

2010

ProfitabilityRatios
OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets

c1

d1

20

20

20

FinancialSummary
CompanyearnedanetprofitofINRXXmninFY20XX,ascomparedtonet profitofINRYmninFY20YY ItreportedtotalIncomeofINRXXmninFY20XX,registeringanincrease ofXpercentoverFY20YY ItearnedanoperatingmarginofX.XpercentinFY20XXanincreaseofX.X percentagepointsoverFY20YY ThecompanyreporteddebttoequityratioofX.XXinFY20XX,anincrease ofX.XpercentoverFY20YY

CostRatios
Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales)

LiquidityRatios
CurrentRatio CashRatio

LeverageRatios
DebttoEquityRatio DebttoCapitalRatio InterestCoverageRatio

KeyFinancialPerformanceIndicators
Indicators
MarketCapitalization(INRmn) TotalEnterpriseValue(INRmn) EPS(INR) ( ) PERatio(Abs)

Value(dd/mm/yyyy)

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover
Improved Decline

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Public:DomesticCompany Company1 (3/5)


KeyBusinessSegments
Segment1
100% 80% 60% 40% 20% 0%

KeyGeographicSegments
Segment3 d1% d2% d3% 20 100% 50% 0% 20 100% India Indiaistheonlygeographic segmentinwhichthecompany hasbeenoperatingforthelast fouryears

Segment2 b1% c1% 1% c2% c3% 20

a1% 1%

a2% a3% 20

b2% b3% 20

BusinessHighlights(1/2)
Description News ItisaflagshipcompanyoftheAGroupandisthelargestIndianmanufacturerof sanitarywareproductswithadominantmarketshareofx%oftheorganizedsector Companyhasachievedy%levelofcapacityutilizationinsanitaryware Company p yoffersitssanitaryware y underthebrands:Brand1, ,Brand2, ,Brand3andBrand4 Besides,ithasalsolaunchedtheworldspremiumbrandsBrand5andBrand6intheIndianmarket Companyhasawidespreadnetworkofmorethan15,000retailersand2,000+dealers Thereare18servicecentersacrossIndiaandmorethan458+shopinshop Faucets,WellnessProducts,Kitchenappliances,Tiles,ContainerGlassandPETBottlesand ExtractorFans Achieved8.26%higheraveragerealizationspertonneinthesanitarywaresegment
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Overview

Network OtherProducts Realizations

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Public:DomesticCompany Company1 (4/5)


BusinessHighlights(2/2)
Description News SanitarywareProducts: City1with hinstalled ll dcapacityof f1.5mnpiecesannually ll City2withinstalledcapacityof2mnpiecesannually Faucets: City3withinstalledcapacityof0.5mnpiecesannually Company p yhasachievedz% %incrementinsanitaryware y capacity p yalong gwithincreasing gthe faucetscapacityby10times Companyhassuccessfullycompletedtheexpansionof0.7mnpiecesofsanitarywareat theplantinCity2bySep2011,takingitscapacityto2mnpieceswithinabudgetedcost ofINR600mn During201112,companyhaslaunched25newsanitarywareproductsunderBrand1and twoseriesoffaucetsundertheBrand2 Companyhasforayedintotheultrapremiummarketsegmentbylaunching8newseries ofhighendluxurysanitarywareandfaucetsundertheBrand5,whichisapartofthe brandportfoliooftheirRegionA A basedwhollyownedsubsidiary Companyhasplansofgreenfieldexpansionof1.2mnpiecesofsanitarywareand2.5mn piecesoffaucetsinState1andState2,respectively
InState1,companyplanstoinvestINR1,700mnandslowlyscaleupinvestmentsuptoINR5,000mn

InstalledCapacity

CapacityExpansion

ProductLaunches

ExpansionPlans

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Public:DomesticCompany Company1 SWOTAnalysis (5/5)

SAMPLE
S O W T

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