Power backup market in india 2014 -Sample

Power Backup Market – India

March 2014

2

Executive Summary

Market

Drivers & Challenges

Trends

Competition

Power backup devices include generators, UPS and inverters Demand-Supply gap in power distribution is the primary reason for boom in power backup

market

Inverter Market Trends

UPS Market Trends

Diesel Genset Market Trends

Drivers •Energy Deficiency

•Rising Disposable Income

•Demand from Telecom Operators

• Increase in Rural Demand

•Healthy Economic Outlook

Challenges •Competition from Unorganized Sector

•Lack of Consumer Awareness

•Growth in Chinese Imports

•Decline in Growth of Desktop Sales

Major Players

Company A Company B

Company C Company D

Company E Company F

POWER BACKUP MARKET IN INDIA 2014.PPT

3

•Macro Economic Indicators

•Introduction

•Market Overview

•Key Production and Demand Hubs

•Supply Chain Analysis

•Key Demand Sectors

•Drivers and Challenges

•Industry Bodies and Associations

•Trends

•Competitive Landscape

•Strategic Initiatives

•Appendix


4 PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT

Economic Indicators (1/3)

11

12

13

14

15

b2

a2

Q1

d1 c1 b1

a1

Q4

c4 b4 a4

Q3

c3 b3

a3

Q2

d2 c2

INR tn

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Jul 2013 - Aug 2013

p

%

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

s

Sep 2013 - Oct 2013

r

Aug 2013 - Sep 2013

5

Power Backup Market – UPS

UPS Market – Overview

•Growing investments in IT and rapid development of the IT sector has contributed to the boom in the UPS market

•Growing consciousness about the need to protect costly electronic equipment is benefiting the market

•Domestic manufacturers are expected to witness stiff competition from foreign players

•Manufacturers operating in the industry are emerging as complete solution providers rather than mere suppliers

UPS Market Segments (2013)

UPS Market Growth (Value) UPS Market Growth (Volume)

0

20

40

60

80

100

120

2018e

h1

2017e

g1

2016e

f1

2015e

d1

2014e

c1

2013e

b1

2012

a1

INR bn

x%

0

2

4

6

8

10

mn

y%

2018e

h2

2017e

g2

2016e

f2

2015e

d2

2014e

c2

2013e

b2

2012

a2

r%

q%

p%

Large (>20 KVA)

Medium (5-20 KVA)

Small (<5 KVA)

m%

n%

UPS System

Battery


6

Major Manufacturing Hubs

•Region A in India is the manufacturing hub of the power backup industry

• In this region, State 1 is the key manufacturing hub for power backup electronics

•Emergence of State 1 as a major hub can be attributed to the fact that its is a duty tax exempted zone

•Major players operating in the power backup market have set up their production base in the region

•Other than Region A, City 1 is an established manufacturing hub for the power backup battery industry

Overview

Production Hubs

Power Backup Production Hubs


7

Rise in Electronic Transactions and ATMs

Growing reliance on modes of electronic payment and ATMs are driving the demand for power backup systems

• For financial institutions relying on uninterrupted power to run critical information systems, events such as power outages can lead to wide-scale disruption in their enterprise-wide management services

•Owing to advancements in technology, the banking sector has witnessed a shift from paper to computer-based files, bank tellers to ATMs and file cabinets to server racks

• Smooth functioning of banking operations is essential to survive the growing competition in the Indian BFSI sector

•Rising preferences for electronic transactions has led to increased demand for power backups

Growth in Electronic Payment Rising trend of ATMs

200

150

100

50

0

x%

2015e

s

2010

r

‘000

0

10

20

30

40

50

%

2011-12

q

2009-10

p

ATM Concentration Pattern

Area Concentration

Metro a%

Non Metro Urban

b%

Semi Urban c%

Rural d%


8

Drivers & Challenges – Summary

Drivers

Energy Deficiency

Rising Disposable Income

Demand from Telecom Operators

Increase in Rural Demand

Challenges

Competition from Unorganized Sector

Lack of Consumer Awareness

Growth in Chinese Imports

Decline in Growth of Desktop Sales


9

Trends – Inverters

Key Trends

Technological Innovations

Contract Manufacturing Opportunities

Shrinking Unorganized Sector


10

Trends – UPS

New Product Launches Branded Segment Gaining Popularity

Improvement in Aesthetics

Focus on Retail and Channel Sales

Key Trends


11

Trends – Diesel Gensets

Rental Market Hybrid Generators


12 PHOTOVOLTAIC GENERATOR MARKET IN INDIA 2014.PPT

Market Competition – Porter’s Five Forces Analysis

Bargaining Power of Suppliers

Threat of New Entrants

Competitive Rivalry Bargaining Power of Buyers

Threat of Substitutes

Impact X

Impact X

Impact X Impact

X

Impact X

13

Competitive Benchmarking (1/5)

Public Trading Comparables

Company A Company B Company C Company D

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio


14

Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

10

20

30

40

%

Company D

d3 d2

d1

Company C

c3 c2

c1

Company B

b3 b2

b1

Company A

a3 a2

a1

Net Margin Gross Margin Operating Margin

• Company C recorded gross margin of c1%, higher than Company A, Company B and Company D which recorded gross margins of a1%, b1% and d1% respectively

• Company C recorded operating margin of c2%, higher than Company A, Company B and Company D which recorded operating margin of a2%, b2% and d2% respectively

• Company C earned a net margin of c3%, significantly higher than Company A, Company B and Company D which recorded net margins of a3%, b3% and d3% respectively


15

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

Electrical components

Equipment Name Designation

Person 1 Chairman

Person 2 Managing Director

Person 3 Director

Person 4 Additional Director

New Delhi


Public: Domestic Company – Company A (1/4)

Head Office

16

Financial Snapshot Key Ratios

Financial Summary • The company earned a net profit of INR ‘d2’ bn in FY 20--, as compared to

net profit of INR ‘c2’ bn in FY 20--

• The company reported total income of INR ‘d1’ bn in FY 20--, registering an increase of ‘p’% over FY 20--

• It earned an operating margin of ‘x.x’ per cent in FY 20--, an increase of ‘y.y’ percentage points over FY 20--

• The company reported debt to equity ratio of ‘w.w’ in FY 20--, an increase of ‘z.z’ per cent over FY 20--

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy) Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR) PE Ratio (Absolute)

Particulars y-o-y change

(20-- – -- ) 20-- 20-- 20-- 20--

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/Loss Total Income

0

2000

4000

6000

8000

0

50

100

150

200

INR mn INR mn

2013

d2

d1

2012

c2

c1

2011

b2

b1

2010

a2 a1



17

Key Business Segments Key Geographic Segments

Business Highlights

0%

50%

100% a2%

2010

c1%

b1%

a1%

c3%

b3%

a3%

2011

c2%

b2%

2013

c4%

b4%

a4%

2012

Segment 3 Segment 2 Segment 1

Description News

Overview

• Company A is a part of the Company 1Group established in collaboration with globally renowned , Country 2-based Company 2

• The company manufactures generators, multipurpose engines, chemicals, yarns, pipes, consumer durables, precision cutting tools etc.

• Company A got ISO 9002 certification in Oct 1998, and has also been awarded ISO 14001 certification

Collaborations • Company A collaborated with Company 3 for manufacturing of diesel generators with Company 3 brand of Engines

Expansion Plans • The group is planning to diversify and enter the IT industry

50%

100%

0%

2013

100%

Region 1

Region 1 is the only geographic segment in which the company

has been operating for the past five years



18

T O

W S


Public: Domestic Company – Company A – SWOT Analysis (4/4)

19

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Electrical Equipment

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Person 4 Director

New Delhi

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation


Private: Domestic Company – Company B (1/5)

Head Office

20

Shareholders of the Company as on dd/mm/yyyy Ownership Structure

Name No. of Shares held

Shareholder 1 a

Shareholder 1 b

Shareholder 1 c

Shareholder 1 d

Shareholder 1 f

Shareholder 1 g

Shareholder 1 h

Shareholder 1 i

Shareholder 1 j

Shareholder 1 k

Total x

100

2012

100

2011

100

2013

Type A Shareholders



21

Financial Snapshot Key Ratios

Particulars y-o-y change

(20– – --) 20-- 20-- 20-- 20--

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

Financial Summary

• The company incurred a net loss of INR –’d2’ mn in FY 20--, as compared to net profit of INR ‘c2’ mn in FY 20--

• The company reported total income of INR 1,529.9 mn in FY 20--, registering an increase of 0.34% over FY 20--

• The company earned an operating margin of ‘x.x’% in FY 20--, a decrease of ‘y.y’ percentage points over FY 20--

• The company reported debt to equity ratio of ‘w.w’ in FY 20--, a decrease of ‘z.z’% over FY 20--

Net Profit/Loss Total Income

80

60

0

40

20

6000

4000

2000

0

a1

INR mn INR mn

2013

d2

d1

2012

c2

c1

2011

b2

b1

2010

a2



22

Business Highlights

Description News

Overview

• Company B has complete range of digital and sinewave inverters and UPS ranging from

400VA to 2000VA

• It also has external battery models, which have been specially designed for multi PC

requirements of customers

• It is India‘s First ISO 9001-2000 Certified Manufacturing Company

Network • It has a pan India network of branch offices and service centers with its headquarters in

City 1



23

T O

W S


Private: Domestic Company – Company B – SWOT Analysis (5/5)

24

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