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AutoAncillaryMarket India
March2013

ExecutiveSummary
Market
AutoancillarymarketinIndiaisexpectedtoreachINRa9bnin201516,growingataCAGRofz2%fromINRa5 bnin201112 Enginepartsaccountforthelargestshare,representingb1%ofthetotalautocomponentmarket Drivers: GrowingAutomotiveIndustry HealthyEconomicOutlook AutoAftermarketDemand GrowingInvestments OpportunityfromNewUSITComplianceLaw Challenges: ExposedtoCyclicalDownturnsintheAutomobileIndustry RisingLabourCostsandPriceofRawMaterials CounterfeitMarket TechnicalInefficiency DepreciatingCurrency

Drivers& Challenges

Government Initiatives

UnionBudget201213 NationalAutomotiveBoard National N i lA Automotive i T Testing i and dR&DInfrastructure I f P Project j (NATRIP) ExportIncentives ACMAInitiatives Diversification RisingPE/VCInvestments FocusonQuality AdoptionofGreenStrategies IncreasingForeignPresence ChangingDesign

Trends

Competition

Marketcomprisesofalargenumberofdomesticplayersandsteadilyincreasingparticipationfromforeign players,mainlythroughmergers&acquisitions SomeofthemajorplayersinthemarketarePlayer1, 1 Player2 2,Player3 3,Player4 4,Player5 5,Player6 6,Player7 7, Player8,Player9,Player10,Player11,Player12,Player13,Player14,Player15,Player16,Player17,Player18 andothers
AUTOANCILLARYMARKETININDIA2013.PPT

MacroEconomicIndicators MarketOverview Segments S t

MajorSegments Major j SubSegments g

OpportunityAreas ExportImport Drivers&Challenges GovernmentInitiatives Trends CompetitiveLandscape Strategic g Recommendations Appendix

AUTOANCILLARYMARKETININDIA2013.PPT

Indianautoancillarymarket,exhibitingrapiddevelopment andisexpected

SAMPLE
AutoAncillaryMarket Overview

Autoancillarymarketisoneofthefastestgrowingsegmentwithinthemanufacturingsectorin India
AutocomponentmarketisexpectedtogrowataCAGRofz2%toreachINRa9bnin201516fromINRa5 bnin201112

Indiahasthepotentialtobecomeoneofthetopautocomponenteconomiesby20 Thereare~xorganizedplayerscontributingtoy%ofthetotalautocomponentoutput,while theunorganizedsectoraccountsfortherest

Unorganizedautocomponentsectorcomprisesof~zplayers,mainlyinthereplacementmarket,orareTier pandTierqmanufacturers Primarily,Type1dominatetheIndianautocomponentmarket

Indian I di auto t ancillary ill sector t h hasb becomeal lucrative ti market k tf forth theglobal l b linvestors i t asth the countrysoverallautomobileindustryisexpectedtowitnessaufoldincreaseindemandby20 alongwiththebusinessfriendlyenvironment,favorablepoliciesandavailabilityofskilled manpoweratacomparativelylowercost

AUTOANCILLARYMARKETININDIA2013.PPT

togrowatasteadypaceoverthenextfiveyears
AutoAncillaryMarketSize&Growth
INRbn +z2% +z1%

SAMPLE

2008

2009

2010

2011

2012

2013e

2014e

2015e

2016e

MarketSegmentation Sectorwise
INRbn

SalestoOEMs

Exports

Aftermarket

Imports 5

AUTOANCILLARYMARKETININDIA2013.PPT

Autoancillaryindustrywillgenerateemployment opportunitiesandalsocontributetocountrysGDP
ContributiontoEmploymentGeneration ContributiontoGDP

Creatingxtoymn additionaljobs
000Person a3 a4 +z1% 29% a2 29% a1 28% 71% 72% 71%

SAMPLE
% +z2%

2009

2015e Direct Indirect

2020e

2009

2015e

2020e

AUTOANCILLARYMARKETININDIA2013.PPT

AutoancillarymarketinIndiaisexpectedtowitnessrobust growthintermsofproduction,exportsaswellasimports
AutoAncillaryMarket FutureOutlook

INRbn

SAMPLE
+z% a2 i2% a1 e1% p1% i1% p2% e2%

a3 i3%

e3%

p3%

2011

2016e

2021e

Imports p

Exports p

DomesticProduction

AUTOANCILLARYMARKETININDIA2013.PPT

ValueChainAnalysis

SAMPLE
BaseRawMaterialProducers SemiFinishedMaterial
Type3 T 2 Type TierrManufacturers TierqManufacturers Autopart1,Autopart2,Autopart3etc. Function3,Function4,Function5, Function6,Function7,Function8, Function9

RawMaterial1,RawMaterial2,RRawMaterial3,RawMaterial4,RawMaterial5

SemiFinishedMaterial1,SemiFinishedMaterial2,SemiFinishedMaterial3

T 1 Type TierpManufacturers Function1

Market1 Type4/Type5Market

Market2

Intermediaries EndUsers
AUTOANCILLARYMARKETININDIA2013.PPT

Opportunitiesdifferacrossmanufacturerspositionedat variouslevelswithintheautoancillarysector

SAMPLE
DomesticTier1Supplier

Indiabasedglobalsupplier

DomesticTier2/3Supplier SmallLocalEntrepreneur Opportunity4 Opportunity3 Opportunity2 Opportunity1

AUTOANCILLARYMARKETININDIA2013.PPT

AutoAncillaryMarket Segments(1/3)

SAMPLE
Segment1 Segment2 Segment3 Segment4 Segment5 Segment6 Other

AutoAncillaryMarket Segmentation(201011)
b7% b % b6% b1% b5%

b b4% b3%

Autocomponentsindustryhasbeenclassifiedintosixbroadsegments: Segment1representthelargestsegmentwithb1%shareofautocomponentmarket Thisisfollowedbysegment2withb2%share Segment3andSegment4accountforb3%shareeachintheentireproductrange Segment5andSegment6representb5%andb6%respectively

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AutoAncillaryMarket Segments(2/3)
Segment1

SAMPLE
Segment2 Outlook
Finding g 1 Finding2 Finding3 Finding4

Finding g 1 Finding2 Finding3 Finding4

These Th fall f lli intothree h b broad dcategories: i

Category1 Category2 Others

Subsegments

Majorpartsinclude:
Part6,Part7,Part8andPart9,Part10, etc.

Majorpartsinclude:
Part1,Part2,Part3,Part4,Part5,etc.

AUTOANCILLARYMARKETININDIA2013.PPT

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SAMPLE
Segment1 Subsegment g 1 Subsegment2 Sub S bsegment t3 Subsegment4 Subsegment5 Sub Subsegment6
AUTOANCILLARYMARKETININDIA2013.PPT

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Subsegment1(1/2)
Subsegment1 Demand
mnunits +z%

SAMPLE
MajorPlayers&StrategicAlliances
Company Player1 Collaboration Player7,Country1
2015e 2020e

2011

2012

2013e

2014e

Player2

Player8, Pl 8 C Country2; 2 Player10,Country3; Player11,Country4 Player12,Country5 Player13,Country6 Player14, 14 Country7

ProductVariation
Player3
Type1 Type2 Type yp 3 Type4 Type5 Type6 Type7 Type8 b4% b3% b8% b6% b7% b1%

Player4 Player5 Player6

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Subsegment1(2/2)
Regionwise

SAMPLE
MarketSegmentation Sectorwise
d3% d1%

c4% c1% c3%

South

North

West

East

Replacement

OE

Export

AUTOANCILLARYMARKETININDIA2013.PPT

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OpportunityAreas Summary
Autoancillarymanufacturingplantsshouldbebuiltnear themajorautomobileproductionorassemblyfacilitiesto capitalizeonthegrowingopportunitiesprovidedbythe existingaswellastheemergingautohubsinIndia

SAMPLE
State1 State2andSurrounding

Automobile ProductionHubs i India in I di

State3

St t 4and State dS Surrounding di

OpportunityAreafortheauto ancillarymanufacturers

State5
15

AUTOANCILLARYMARKETININDIA2013.PPT

State1 OpportunityAreas

SAMPLE
State1 AutoHub
Company Company1 Company2 Company3 State1 Place3 Company4 Place5 Place6 AutoancillaryunitsinPlace2, Place5andPlace6playa significantroleinsupporting thedevelopmentofState1as anautohub

Place1

Place4 Place2

MajorAutoHubs

MajorAutoancillaryHubs
AUTOANCILLARYMARKETININDIA2013.PPT

EmergingAutoancillaryHubs
16

AutomajorsestablishingmanufacturingplantsinState1, resultinginahigherdemandforautoancillaryunits
State1 AutoIndustryScenario

Finding1
Subfinding1 Subfinding2

Finding3 Finding4
Subfinding3 Subfinding4

Finding5
Subfinding5

Finding6

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State1islikelytoattractinvestmentowingtoitsfavourable environment

SAMPLE
GovernmentSupport LocationAdvantage

Finding1 Finding2

State1 GrowthDrivers `

Finding1 Finding2

H Human Resource R Development D l t Finding1

Subfinding1

Finding g 2 AvailabilityofLand Finding1 Finding2

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AUTOANCILLARYMARKETININDIA2013.PPT

Growthofexportshavebeenhamperedbytheturbulent globaleconomicscenario
Exports Overview
Finding1
Subfinding1 Subfinding2

Exports(Value)
INRbn

+z%

Finding3
Subfinding3 Subfinding4

Finding5
2008 2009 2010 2011 2012 2016e 2021e

ExportDestinations20
b4% b5% b6% b1% b3% Region1 Region2 Region3 R i 4 Region Region5 Region6

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Drivers&Challenges Summary

Challenges
ExposedtoCyclicalDownturnsinthe AutomobileIndustry

Drivers
GrowingAutomotiveIndustry HealthyEconomicOutlook AutoAftermarketDemand GrowingInvestments Opportunity O t it f fromNew N USIT ComplianceLaw

RisingLabourCostsandPriceofRaw Materials CounterfeitMarket TechnicalInefficiency DepreciatingCurrency

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Growthintheautomobileindustryisexpectedtogenerate hugeorder
GrowingAutomotiveIndustry(1/3)
Finding1
Subfinding1

Impact

Finding2
Subfinding2

Finding3

GrowingAutomotiveIndustryTurnover
INRtr +z1%
000units

RisingPassengerVehicleProduction

+z2%

2011

2016e

2009

2010

2011

2012

2016e

2021e

AUTOANCILLARYMARKETININDIA2013.PPT

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UnionBudget201213hashittheautoancillaryindustryin bothadvantageousaswellasdisadvantageousways

SAMPLE
UnionBudget201213

Finding1 Finding2 Finding3

NegativeImpact

PositiveImpact

Impact1 Impact2 Impact3 Impact4

Impact1 Impact2 Impact3

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Trends Summary

SAMPLE
Diversification RisingPE/VCInvestments
FocusonQuality

KeyTrends
`

AdoptionofGreenStrategies

IncreasingForeignPresence

Ch Changing i D Design i

AUTOANCILLARYMARKETININDIA2013.PPT

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Public:DomesticCompany Company1(1/4)
CompanyInformation
CorporateAddress TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange Address1 +91xx yyyyyyyyy +91wwzzzzzzzz www.xxx.com BombayStockExchange(BSE) HeadOffice NewDelhi

SAMPLE

OfficesandCentres India

ProductsandServices
Products Product1,Product2,Product3,Product4,Product5,Product6, Product7,Product8,Product9,Product10,Product11,Product 12 P 12, Product d t13 13,P Product d t14, 14 Product P d t15 15,P Product d t16 16,Product P d t17 17, Product18,Product19,Product20,Product21,Product22, Product23,Product24,Product25andProduct26

KeyPeople
N Name Person1 Person2 Person3 Person4 D i ti Designation MDandExecutiveDirector VPofFinanceandAccounts CEOofSubsidiary1 MDofSubsidiary2

AUTOANCILLARYMARKETININDIA2013.PPT

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Public:DomesticCompany Company1(2/4)
Financial i i lS Snapshot h
Total Income INR mn

SAMPLE
K Ratios Key i
Particulars INR mn

Net Profit/Loss

yoychange 2011 (201110)

2010

2009

2008
Decline

ProfitabilityRatios
OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets

b1

b2 2009

b3

b4

2008

2010

2011

FinancialSummary
ThecompanyincurredanetprofitofINRa4mninFY2011,as comparedtonetprofitofINRa3mninFY2010 ThecompanyreportedtotalincomeofINRb4mninFY2011, registeringanincreaseofx%overFY2010 Thecompanyearnedanoperatingmarginofp%inFY2011,an increaseofqpercentagepointsoverFY2010 ThecompanyreporteddebttoequityratioofrinFY2011,an increaseofz%overFY2010

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

LiquidityRatios
CurrentRatio CashRatio

LeverageRatios
DebttoEquityRatio Debt b toCapital i lRatio i InterestCoverageRatio

KeyFinancialPerformanceIndicators
Indicators
MarketCapitalization(INRmn) TotalEnterpriseValue(INRmn) EPS(INR) PERatio(Abs)(/07/2012)

Value(/07/2012)
x1 x2 x3 x4

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover

Improved

AUTOANCILLARYMARKETININDIA2013.PPT

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Public:DomesticCompany Company1(3/4)
KeyBusinessSegments
AutomotiveComponents
100% 50% 0% 100%

SAMPLE
India
50% 0%

KeyGeographicSegments

x1%

Finding1

x2%

Finding2

2011

2011

BusinessHighlights(1/2)
Description News Companyisengagedinmanufacturingandsalesofintegratedautomotivecomponents primarilyinCountry1,Country2andCountry3 Itproducespartsforsegment1,part1,part2andpart3forsegment2,segment3,andsegment4
andsegment5 Also,itmanufacturescomponentsforvarioussectors,suchasthesector1,sector2,sector3,sector 4,sector5,sector6andsector7

Overview

FundRaising

InMar201,companyhadraised~INRxbn viaissuanceofforeigncurrencyconvertible bondstofundacquisitionsandothercapitalinvestments Previously,inJan20,companysboardwasallowedtoraise~INRybn viaforeigndebtinstruments,

suchasGDRs,ADRs,FCCBsorothersecuritiesconvertibleintoequity
AUTOANCILLARYMARKETININDIA2013.PPT

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StrategicRecommendations Summary

SAMPLE
Recommendation1 Recommendation2

Key Recommendations `

Recommendation3

Recommendation4

Recommendation5

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Thankyoufortheattention
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