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HIGHLIGHTS OF
BALL VALVE INDUSTRY
BIG STRATEGIC MANAGEMENT CONSULTANTS
3, Hindustan Kohinoor Complex, L B S Marg, Vikhroli (W), Mumbai, India
Tel: 022 67427821-29 Fax 022 67427826
P.O. Box 29815, Dubai, United Arab Emirates.
Tel 00971-4-431 5672 Fax 00971-4-431 5673 URL: www.big-consultants.com
Mazustegui 21- 2a Entreplanta Izquierda , 47806 , Bilbao Vizcaya , Spain
Strategic Management Consultants
Indian Economy Scenario
Understanding the Product - Valves
Global Ball Valve Industry Scenario
Ball Valve Industry in India
Growth Drivers for Ball Valve Industry
How can BIG Help?
CONTENTS
2
Strategic Management Consultants
INDIAN ECONOMIC SCENARIO
Source: International Monetary Fund (IMF)
After several consecutive years of strong growth, the world economy entered into the worst recession which started in
third quarter of 2008.
All the advanced economies faced deep economic crisis , as the world GDP dropped by 1.3% in 2009.
The signs of recovery shall be visible from fourth quarter of 2010.
The Indian economy which has also been impacted by the global turmoil, posted a growth of 6.7% in FY 2009.
Agriculture 17%
Industry 20% Services
63%
GDP Composition 2009
4,950 6,364 7,260 8,957 9,523 10,142 5,893
9,617 11,550 14,803 10,324
16,704 11,173
18,763 20,696
26,588 36,064 32,811
0
10000
20000
30000
40000
50000
60000
70000
2003-04 2005-06 2006-07 2007-08 2008-09 2009-10
INR
Bil
lio
n (
at
Cu
rre
nt
Pri
ces)
INDIA- GDP
Primary Secondary Tertiary
Strategic Management Consultants
4
9.2 9.8 9.3 6.7 7.2
5.4 5.9 5.8
4.3
-2.2
-5
0
5
10
15
2006 2007 2008 2009 2010
Gro
wth
Ra
te (
in %
)
Real GDP Growth Rate: India vs. World
INDIA WORLD
8,547
11,927
13,718 13,153 13,436
5,874
7,684 8,608 8,344 8,721
740 1,158 1,287 1,556 1,674
0
2000
4000
6000
8000
10000
12000
14000
16000
2006 2007 2008 2009 2010*
INR
Bil
lio
n
INDIA - Growing Trade and Investments
Imports Exports FDI
Transformation
Average Real GDP growth in
last 5 year was 8.5%.
GDP Per Capita is INR 48,000
Projected GDP growth in
2010-11 is 8.2%
Source: IMF
Source: Reserve Bank of India (RBI Database)
INDIAN ECONOMIC SCENARIO
Strategic Management Consultants
Indian Economy Scenario
Understanding the Product - Valves
Global Ball Valve Industry Scenario
Ball Valve Industry in India
Growth Drivers for Ball Valve Industry
How can BIG Help?
CONTENTS
5
Strategic Management Consultants
6
TYPES OF VALVES
Multi-Turn or Linear Motion Valves
Quarter turn valves
Valves
Gate Valve Plug Valve Ball Valve Globe Valve Pinch Valve
Needle Valve Butterfly Valve
Strategic Management Consultants
Indian Economy Scenario
Understanding the Product - Valves
Global Ball Valve Industry Scenario
Ball Valve Industry in India
Growth Drivers for Ball Valve Industry
How can BIG Help?
CONTENTS
7
Strategic Management Consultants
8
GLOBAL VALVE INDUSTRY SCENARIO
2005 2006 2007 2008 2009 2010
41,592 43,414 45,301
47,399 49,622 52,047
Global Valve Market (USD Million)
18%
14%
12%
6%
50%
Global Sector wise Consumption of Valves (%)
Oil & Gas
Refining Sector
Power Sector
Minicipal Sector
Others
Source: Industrial Valves World Markets Report by McIlvaine Company
The Global Valve
Industry grew at a rate of
4-5% year on year basis.
Source: Industrial Valves World Markets Report by McIlvaine Company
By 2010, annual sales of valves will exceed USD 50
billion .
While China will be the fastest growing purchaser of
valves, U.S. will remain on top followed by Japan
and Germany. The UK will occupy fifth place
followed by France, South Korea, Italy, Taiwan, and
Canada.
Strategic Management Consultants
9
GLOBAL BALL VALVE INDUSTRY
By 2010, the United States of America is expected to be the biggest market of the world for industrial ball
valves with a market size of USD 1866.13 million followed by China and Russia.
However India is expected to stand 10th in the global ranking for markets of industrial ball valves with a
market size of USD 274 Million.
As per Industrial Valves World Markets Report by McIlvaine Company, in 2009 Ball Valve Market
constituted 25% of the total world valve market.
Source: Industrial Valves World Markets Report by McIlvaine Company
Similar to the growth of
valves, ball valves is also
expected to grow at a rate of
nearly 5% per annum crossing
USD 11,000 million by 2010.
2005 2006 2007 2008 2009 2010
9,233 9,631
10,038 10,480 10,950 11,458
Global Ball Valve Market (USD Million)
Strategic Management Consultants
Indian Economy Scenario
Understanding the Product - Valves
Global Ball Valve Industry Scenario
Ball Valve Industry in India
Growth Drivers for Ball Valve Industry
How can BIG Help?
CONTENTS
10
Strategic Management Consultants
11
VALVE INDUSTRY IN INDIA
2005 2006 2007 2008 2009 2010
1,206 1,270 1,334 1,409 1,509
1,603
Indian Valve Market (USD Million)
Source: Industrial Valves World Markets Report by McIlvaine Company
The Indian valve industry is expected to grow at a higher pace than the global valve industry.
Indian valves industry has come a long way from making simple valves to producing a wide range of
sophisticated precision valves. But the Indian valve space is as fragmented as the Global Valve Industry.
The organized segment in Indian Valve Industry contributes to 60% of the total market share with major
players being Fouress Group, Oswal Industries Ltd., Virgo Engineers Ltd., Flanges Pvt Ltd.
The unorganized segment comprises of small and medium scale players with heavy dependence on Sub
contractors.
Similar to the growth of
valves, ball valves is also
expected to grow at a rate of
nearly 5% per annum crossing
USD 11,000 million by 2010.
Strategic Management Consultants
12
BALL VALVE INDUSTRY IN INDIA
Source: Industrial Valves World Markets Report by McIlvaine Company
2005 2006 2007 2008 2009 2010
211 222 233 245
259 274
Indian Ball Valve Market(USD Million)
The global market of ball valves is expected to grow at 5% p.a., correspondingly the growth in the
market for ball valves in India at approximately 6% per annum.
Oil & gas industry are the biggest consumer of ball valves in India in absolute terms similar to that of
global ball valves market.
However, pharmaceutical industry is expected to grow at a fast pace of 12% per annum.
Ball valves constitute one
of the major components
of valve industry.
Strategic Management Consultants
Indian Economy Scenario
Understanding the Product - Valves
Global Ball Valve Industry Scenario
Ball Valve Industry in India
Growth Drivers for Ball Valve Industry
How can BIG Help?
CONTENTS
13
Strategic Management Consultants
14
GROWTH DRIVERS FOR THE INDUSTRY
Rapid increase in energy supply is increasing coal-fired electrical generating capacity at a rate in
excess of 10 percent per year. India and other developing Asian countries are increasingly turning to
coal for future electricity needs. A coal plant requires four times the investment in valves as does a
combined cycle gas turbine plant
Industrial expansion in Asia resulting in the need for cement, iron and steel, chemicals,
pharmaceuticals and other products in Asia is continuing to result in increases in valve revenues
Synthetic Oil Development resulting in the valve requirements in refineries and oil and gas
production are substantial, the valve requirements for synthetic oil are much greater.
Infrastructure Projects needs is also the biggest boost for Ball Valves in India
Strategic Management Consultants
Indian Economy Scenario
Understanding the Product - Valves
Global Ball Valve Industry Scenario
Ball Valve Industry in India
Growth Drivers for Ball Valve Industry
How can BIG Help?
CONTENTS
15
Strategic Management Consultants
16
HOW CAN HELP? G
RO
WT
H
Analyzing the Current Ball Valve Industry in India.
Market Research for foraying into new Business Segments and Financial Management
Techno-Economic Analysis of New Business Segments & Leveraging Traditional approach with Modern Technology.
Competitive Positioning and Acquiring Larger Market Share and Brand Image Building
Strategic Management Consultants
17