Market Research Report : Construction chemicals market in india 2014 - Sample

Construction Chemicals Market – India

November 2014

2

Executive Summary

Market

Drivers and Challenges

Trends

Competition

Construction chemicals market stood at INR xx bn in 20-- and is expected to reach INR yy bn in 20--, growing at a CAGR of about z%

Growing focus on construction activities in India has led to significant rise in demand for construction chemicals in the Indian market

Focus on Tier 2 and Tier 3 Cities

Use of Silicone-based Chemicals

Eco-Friendly Construction Chemicals

Rising Compliance with International Manufacturing Standards

Drivers

Growth in Infrastructure Investment

Increase in Urban Housing

Rise in Disposable Income

Steady Economic Growth

Continuous FDI Inflow

Challenges

Low Consumer Awareness

Lack of Standards

Price Sensitivity

Unskilled Labor

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Key Players

Company A Company B Company C

Company D Company E Company F

3

•Macroeconomic Indicators

•Introduction

•Market Overview

•Construction Chemicals - Classification

•Major Application Areas

•Penetration Rate - Key Segments

•Supply Chain Analysis

•Major Manufacturing Hubs

•Sector-wise Demand

•Drivers and Challenges

•Trends

•Recent Developments

•Opportunity Areas

•Competitive Landscape

•Strategic Initiatives

•Appendix CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

4 CONSTRUCTION CHEMICALS 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

Specialty Chemicals – Domestic Market Overview

Specialty Chemicals – Market Size and Growth

• Specialty chemicals are high value low volume chemicals used mainly because of its performance improving properties • Global specialty chemicals industry accounts for b% of the global chemical industry in 20-- • Indian specialty chemicals industry is expected to reach INR cc bn by 20-- and INR dd bn by 20-- • By 20--, Indian cities are likely to contribute p% of the total population and this rise in urbanization will drive the

growth of specialty chemicals •Rise in urbanization will boost investments in residential, industrial and commercial sector and increase demand for paints and coatings, specialty polymers, construction chemicals, home care surfactants, paper chemicals, cosmetic chemicals, plastic additives among others

Market Segmentation Based on Product Type-20--

x4

x4

x3

x2

x1

0

INR bn

Z%

20--e

y2

20--

y1

a4

a3

a2

a1

a6

a5

Plastic Additives

Homecare Surfactants

Specialty Polymers

Paints and Coatings

Construction Chemicals

Others


6

Construction chemicals cater to demand from diverse projects across different construction sectors

Construction Chemicals Market Segments

y1

y2

Unorganized Organized

Indian Construction Chemicals Market Growth

b4

b3

b2

b1

0

INR bn

P%

20--e

x7

20--e

x6

20--e

x5

20--e

x4

20--e

x3

20--

x2

20--

x1

• Focus on the quality and standards of construction has

led to a surge in demand for construction chemicals

• Construction chemicals industry in India is dominated by

the organized segment

• Top 3 – 4 players operating in the market account for

nearly q% of the overall market share

• Though use of construction chemicals increases the

project by d-e%, these chemicals increases the longevity

of the end product and improves performance


7

Drivers & Challenges – Summary

Drivers

Growth in Infrastructure Investment

Increase in Urban Housing

Rise in Disposable Income

Steady Economic Growth

Continuous FDI Inflow

Challenges

Low Consumer Awareness

Lack of Standards

Price Sensitivity

Unskilled Labor



Trends – Summary

Focus on Tier 2 and Tier 3 Cities Use of Silicone-Based Chemicals

Rising compliance with international manufacturing standards

Eco-Friendly Construction Chemicals

Key Trends

9

Opportunity Areas

Gujarat Madhya Pradesh West Bengal Orissa

• Indian states are focusing on infrastructure development as the primary vehicle to drive economic growth

• Emphasis on construction of infrastructure facilities provides a huge scope for the development of the construction chemicals market in India

Opportunity Areas – Summary


10

Porter’s Five Forces Analysis

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact X

Impact X

Impact X

Impact X

Impact X


11

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


12

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

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Company A, Street A

City B

State C

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Construction Chemicals

Others

Name Designation

Person 1 Chairman, Managing Director

Person 2 Chief Executive of Manufacturing

Person 3 Director of Legal, Compliance

Person 4 Vice-President of Business and Markets-South Asia

Head Office

Mumbai



Financial Snapshot Key Ratios

Financial Summary


• The company incurred a net loss of INR ‘d2’ mn in FY 20-- as against INR ‘c2’ mn in FY 20--

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

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

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

Key Financial Performance Indicators

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

Total Enterprise Value (INR)

EPS (INR)

PE Ratio (Absolute)

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

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

x1

y3

y2

y4

y1

y0

x4

x3

x2

c1

2011

b2

b1

2010

a2

a1

2013

d2

INR mn INR mn

d1

2012

c2

14

Key Business Segments Key Geographic Segments

Key Recent Developments


Description News

Overview

• The company is one of the leading chemical companies operating in the global market with around pp production sites around the world

• The company’s construction chemicals division, owned by Z Group, operates in India, Bhutan and Nepal

Product Launch • In Mar 20-- the company launched a new brand K for the construction industry • In FY 20--, the company began the production of direct dyes and launched smart coats for

paper coatings

p3

p2

p1

20--

b4

20--

b2 a1 c2 z2

y2

b3 a2

c3 z3

y3

x3 x2

20--

b1 c1

z1

y1

x1

a3 c4

z4

y4

x4

20--

Agricultural Solution

Others

Functional Soln.

Chemicals

Plastics

Performance Products

0%

50%

100%

20--

s4

20--

s3

20--

s2

20--

d1

s1

India Foreign



T O

W S



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