Market Research Report : Fitness equipment market in india 2013

Fitness Equipment Market IndiaFitness Equipment Market ‐ India

May 2013

Executive Summary

Market

• Indian fitness market is at a nascent stage with very few reputed domestic manufacturers

• Fitness equipment market is currently valued at INR X1 units and is expected to reach INR X6 units by 20‐‐, at a CAGR of approximately X%

Drivers & Challenges

Drivers Favorable Demographics

Rise in Middle Class Population and Increasing Affordability

Challenges High Dependence on Imports

Rise in Alternative Fitness Options

Severe Space ShortageChallenges Rising Number of Fitness Chains and Clubs

Unhealthy Lifestyle among Urban Population

Trends

Corporate Houses Setting Up In‐house Gyms

Seasonal Discounts Offered on Equipment

Online Shopping

Teleshopping

Competitive Landscape

Key Players

Player A Player B Player C

2

LandscapePlayer D Player E Player F

FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT

•Macro Economic Indicators•Introduction•Market Overview•Export & ImportD i & Ch ll•Drivers & Challenges•Business Channel•Key Trends•Key Trends•Competitive Landscape•Major Dealersj•Recent Developments•Strategic Insights

3FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT

•Appendix

SAMPLEEconomic Indicators (1/3)SAMPLE INR tn

c4d3

GDP at Factor Cost: Quarterly

b4

a4

c3b3

a3

d2c2b2a2

d1c1

b1

a1

Q4Q3Q2Q120‐‐ ‐ ‐‐20‐‐ ‐ ‐‐20‐‐ ‐ ‐‐20‐‐ ‐ ‐‐

Inflation Rate: Monthlyy

%DC

EBA

4

Feb 20‐‐ ‐Mar 20‐‐Jan 20‐‐ ‐ Feb 20‐‐Dec 20‐‐ ‐ Jan 20‐‐Nov 20‐‐ ‐ Dec 20‐‐Oct 20‐‐ ‐ Nov 20‐‐


Fitness equipment comprises a variety of equipment under cardio and strength genre

• India’s modern metropolitan population is projecting a growing aspiration towards complete wellness rather than just staying fit There is an increasing trend of looking fit and well groomed that is propelling health and wellness business in India A marked growth in sports culture is also driving fitness consciousness among young Indian populationA marked growth in sports culture is also driving fitness consciousness among young Indian population Television also plays a very significant role in raising the level of desirability for well toned body

• Fitness equipments are gradually moving out from gymnasiums and health clubs to offices and homes• Fitness equipment can be broadly categorized into cardio equipment and strength equipment

Cardiovascular Treadmills Ellipticals Climbmills

Equipment designed for general fitness purpose

Fitness Equipment

Equipment

Stationary Cycles Rowers Steppers

Strength Equipment

Various types of Bench bars and

R kBarbells

Weight Lifting Machines

Equipment designed for body building


Racks

Foreign manufactured equipment dominate the Indian fitness market to a large extent

• Indian fitness market is at a nascent stage with very few reputed domestic manufacturers

• Demand for fitness equipment and services is seeing a

Market Overview

INR bnX6

X% X5

Market Size and Growth

•Demand for fitness equipment and services is seeing a robust growth due to changing lifestyle and higher disposable income in the hands of India’s young working population

• India has immense potential in the market since it is still

X2X1

X5

X3X4

• India has immense potential in the market since it is still underpenetrated and is majorly dominated by foreign equipment manufacturers

• Indian manufacturers face stiff competition from foreign fitness equipment players

20‐‐e 2017e20‐‐ 20‐‐e20‐‐e 20‐‐e

Market Segmentationfitness equipment players Imported equipment dominate Indian market due to its upgraded technology and reliability of products

Indian manufacturers face difficulty in investing huge amount on R&D and sales partnering with dealers and retailers

b%

BA

p g

• Indian fitness service sector being majorly unorganized retards the equipment manufacturing companies Most independent fitness clubs and gyms in India are too small and lack sufficient space and capital to invest in equipment


a%

EXIM: Gymnasium & Athletics Equipment

INR units

b2%

b1%a2%

a1% A3

A2

A1

20‐‐ ‐ ‐‐

B3

20‐‐ ‐ ‐‐

B2

20‐‐ ‐ ‐‐

B1

BA BA

HS Code: 950691 that includes Gym equipment, such as horizontal and parallel bars, Balance Beams and Springboards, Dumbbells andBarbells, Medicine Balls , Hurdles, Pole Vault and High‐jump Equipment , Punch Bags and Boxing or Wrestling Rings

•The sector has high import dependence that forms approximately x% of total imports in the country as on 20‐‐ ‐ ‐‐ that is highlighted by the presence of numerous foreign brands sold by retailers and dealers

• India's imports for Gymnasium & Athletics Equipment represent t% of world imports thereby putting India in the fth

position in world importsTh t d b l (i t d d t d f t l ) f th l t 3 fi i l h b i t l

7

•The average trade balance (import deducted from export value) for the last 3 financial years has been approximately INR r units


Drivers & Challenges

Challenges

Drivers

Favorable Demographics

Ri i Middl Cl P l i d

High Dependence on Imports

Rise in Alternative Fitness Options

Rise in Middle Class Population and Increasing Affordability

Rising Number of Fitness Chains and Clubs

Severe Space Shortage

Unhealthy Lifestyle among Urban Population


SAMPLE Distribution Channel

Raw Material

Manufacturing

Domestically Manufactured Imported Equipment

Wholesalers

Distributors/ Dealers Retailersand/ or

Distributors tie up withi l i

Distributors tie up with commercial establishments requiring fitness equipment

Direct sales to private or commercial customers

9

Distributors usually strike partnerships with imported equipment manufacturers from the supply side and with commercial establishments like offices and gyms on the demand side to sell the fitness equipment


SAMPLE Key Trends

Corporate Houses Setting UpIn‐house Gyms

Seasonal Discounts Offered on equipment

Key

Trends

Online Shopping Teleshopping


Competitive Benchmarking (1/3)

Key Ratios of Major 3 Companies – Operational Basis (FY 20‐‐) (1/3)

% b1%a1%Operating Margin Net Margin

Player B

b2%

Player A

a2%

• X

• x


Private: Domestic Company – Player A (1/5)

Company Information Offices and Centres – India

Corporate Address xx

Tel No. xx

Website xx

Year of Incorporation xx

Delhi

Head OfficeProducts and Services

Category Products/Services

Key People

N D i ti

Category Products/Services

Sports Goods xx

Fitness Equipment xx

Name Designation

Equipment Supplier xx

Others xx



Shareholders of the Company as on xx/xx/20‐‐ Ownership Structure

Name No. of Shares held

100 0%100 0%100 0%

Directors or relatives of directors

100.0%100.0%100.0%

Total

20‐‐20‐‐20‐‐


Ownership structure corresponds to Date of AGM: xx/xx/20‐‐, xx/xx/20‐‐ and xx/xx/20‐‐

i i l S h K i


Financial Snapshot Key Ratios

Particulars y‐o‐y change (20‐‐ ‐ ‐‐)

20‐‐ 20‐‐ 20‐‐ 20‐‐

Profitability RatiosOperating Margin N.A. N.A. N.A. N.A. N.A.

Net Profit/LossTotal IncomeINR unitsINR units

nNet Margin N.A. N.A. N.A. N.A. N.A.

Profit Before Tax Margin N.A. N.A. N.A. N.A. N.A.

Return on Equity 1.47 5.36% 3.89% 0.00% 0.00%

Return on Capital Employed 0.00 0.00% 0.00% 0.00% 0.00%

Return on Working Capital 0.00 0.00% 0.00% 0.00% 0.00%

Return on Assets 0.00 0.00% 0.00% 0.00% 0.00%

m

Financial Summary

Return on Fixed Assets 0.00 0.00% 0.00% 0.00% 0.00%

Cost RatiosOperating costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N A N A N A N A N A

0

20‐‐20‐‐

• Company earned a net profit of INR m units in FY 20‐‐, as compared to net profit of INR n units in FY 20‐‐

• It reported total income of INR p units in FY 20‐‐, registering an increase of t per cent from FY 20‐‐

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity RatiosCurrent Ratio ‐10.83% 1.76 1.97 1.71 2.07

Cash Ratio ‐35.86% 0.16 0.24 0.20 0.32

Leverage RatiosDebt to Equity Ratio 14.21% 1.16 1.02 0.50 0.50

• The company reported a debt to equity ratio of x percentage points in FY 20‐‐, an increase of y per cent over FY 20‐‐

Debt to Capital Ratio 6.57% 0.54 0.50 0.33 0.34

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency RatiosFixed Asset Turnover N.A. 0.00 0.00 0.00 0.00

Asset Turnover N.A. 0.00 0.00 0.00 0.00

Current Asset Turnover N.A. 0.00 0.00 0.00 0.00

14

Improved Decline

Current Asset Turnover N.A. 0.00 0.00 0.00 0.00

Working Capital Turnover N.A. 0.00 0.00 0.00 0.00

Capital Employed Turnover N.A. 0.00 0.00 0.00 0.00



Business Highlights

Description News

Overview • xx

Fitness Equipment • xx


SAMPLE Private: Domestic Company – Player A (4/5)

• xx • xx• xx • xx

WS

TO

WS

• xx• xx

TO


SAMPLE Brief Profile of Major Dealers Operating in Fitness Equipment Market in India (1/4)

• XACompany

Logo

• XB Company XLogo


Strategic Insights

A

• x

B

• x

CC

• x

D

18

• x


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Market Research Report : Fitness equipment market in india 2013

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