Market Research Report :Polymer Market in India 2012
11
Click here to load reader
-
Upload
netscribes-inc -
Category
News & Politics
-
view
1.983 -
download
0
description
For the complete report, get in touch with us at : [email protected] Indian Petrochemical industry is one of the fastest growing sectors in the world. Low operating capacities in Indian petrochemical concerns bring with it the opportunity for future facility utilization. Polymer market is dependent on growth in related sectors. Low per capita consumption of polymer offers opportunities for domestic manufacturers to meet the rising domestic demand for polymers. The report begins with an overview of the petrochemical industry in India providing the market size and growth as well as information regarding the increase in refining capacity in India. This is followed by a primary segmentation of the industry. An overview of polymer industry provides an introduction to the sector and covers the market size and growth along with share of polymer in India. This is followed by an analysis of the value chain as well as a description of the key processes involved in the methodology for developing polymeric products. The section also renders information about the distribution model prevalent in the sector along with an EXIM trend over a period of five years. Porter’s Five Forces analysis concludes this section. The next section provides highlights regarding the major polymers in the Indian Market. The sector can be categorized into four major sub-divisions of polymers. It includes information regarding individual market sizes and growth. Also provided are the primary properties and uses of these polymers. An analysis of the drivers explains the factors for growth of the market and includes demand from packaging industry, growth in associated manufacturing sectors, increase in usage of polymer products in agriculture, depreciation of rupee and low per capita consumption of polymer. Due to marketing policies varying across sectors and unique attractive packaging surfacing as a potent determinant for success of products, packaging sector is poised for growth. Growth in packaging sector will translate in to strong demand for the polymer industry. Growth is directly linked with its associated sectors that are prime polymer users. Growth in the Indian economy ushers in the development of sectors such as infrastructure, automobiles and consumer goods. These require polymer in their product development and thus pose as significant drivers for the sector. Agriculture constitutes another sector that has emerged as a potential end user for polymers. Be it infrastructural projects such as irrigation or even construction activities, polymers find its applications in such areas. Depreciation of rupee has added to major woes in the cost of imports for the sector. India has witnessed increased domestic demand and with imports slowing down due to increased cost, immense opportunities exists for domestic manufacturers to cater to the rising demand. Finally, India faces low per capita consumption of polymers which poses latent opportunities for the sector. Howe
Transcript of Market Research Report :Polymer Market in India 2012
Polymer Market in IndiaPolymer Market in India
January 2012
Executive Summary
Market
Indian Petrochemical industry is considered to be growing at a1% CAGR over 20‐‐‐‐‐
India is considered as one of the fastest growing manufacturers of polymers
Condition 1 has led to increased costs of imports creating opportunities for domestic players to generate high revenuesgenerate high revenues
Drivers–Demand from packaging industry–Growth in associated manufacturing
Challenges–Rise in crude oil prices
–Environmental degradation
Drivers & Challenges
sectors– Increase in usage of polymer products in agriculture
–Depreciation of rupee–Low per capita consumption of polymers–Low per capita consumption of polymers
Usage of polymers in the medical sector
Improvised marketing offers for polymer buyers
Trends Shift towards gas based production units
Growing investments
Competition
Major Players
Company 1 Company 2 Company 3
buyers
2POLYMER MARKET IN INDIA 2012.PPT
Company 4 Company 5 Company 6
•Introduction
•Market Overview
•Major Polymers
•Drivers & Challenges
•Government Participation
•Trends
•Competition
•Strategic Recommendations
•Appendix
3POLYMER MARKET IN INDIA 2012.PPT
pp
Polymer industry is expected to see steady growth as demand continues to rise
• India is one of the fastest growing polymer markets in the world
Polymer Industry – Overview Market Size and Growth
20INR bn
x1% T• It ranks xth in terms of capacity of polymers after only the country 1 and country 2
• Indian polymer industry is extremely capable of exporting polymers as many petrochemical majors 5
10
15T
SRQP
p g p y y p jstill operate at low capacities
• Per capita consumption of polymer in India is at a2 kg compared to a3 kg in US and China with a4 kg
•Major forms of polymers are polyethylene,
020--20--20--20--20--
Petrochemical – Share of PolymerMajor forms of polymers are polyethylene, polypropylene, polystyrene and polyvinyl chloride
• Polymer finds its usage in a variety of sectors like packaging, agriculture and plastics
• Condition 2 aided with increase of crude oil pricesx3% Segment 2
Segment 1
• Condition 2 aided with increase of crude oil prices have affected the polymer industry in India negatively Condition 3 has led to higher import costs and with rise in crude oil prices, overall import costs of inputs result in
x2%
4POLYMER MARKET IN INDIA 2012.PPT
c ude o p ces, o e a po t costs o puts esu tincreased polymer prices
Source:
Though rupee depreciation implies reduction in volume, imports continue to maintain healthy trend
INR mnD
Imports
•Despite d1 duties imposed by the government,
imports continued to garner strong volumes
Imports (Value)
50,000
100,000
150,000
200,000 x2% DC
BA
imports continued to garner strong volumes
•Has a cenvat duty of b1% with an excise cess of b2%
• Imports of polymers have maintained an upward
trend with polyethylene registering the highest value0
,
20--20--20--20--
p y y g g g
Segmentation – Countrywise (2009‐10) Segmentation – Countrywise (2010‐11)
p6%p2%
p1%Country 1
Country 4Country 3Country 2
q6% q2%
q1%
Country 4Country 3Country 2Country 1
p5%p4%
p3%
p
Country 6Country 5Country 4
q5%q4%
q3%Country 6Country 5Country 4
5POLYMER MARKET IN INDIA 2012.PPT
Source:
Drivers & Challenges – Summary
Drivers
Demand from packaging industryDemand from packaging industry
Growth in associated manufacturing sectors
Increase in usage of polymer products
Challenges
Rise in crude oil prices
Increase in usage of polymer products in agriculture
Depreciation of rupee
L it ti f
Environmental degradation
Low per capita consumption of polymer
6POLYMER MARKET IN INDIA 2012.PPT
Trends – Summary
Investments Usage of polymers in medical sector
Key Trends
Shift towards gas based production units
Improvised marketing offers for polymer buyers
7POLYMER MARKET IN INDIA 2012.PPT
SAMPLE Public: Domestic Company – Company 1 (1/3)
Company Information Offices and Centres – India
Corporate AddressPlace 1, Country 1
Tel No. +123456
Fax No. +123456
Website http://www.abc.com/index.html
Year of Incorporation 19‐‐City
Products and Services
Ticker Symbol ‐‐‐‐
Stock Exchange
Key People
Products and Services
Category Products/Services
Category 1 Product 1
N D i ti
Head Office
Category 2 Product 2
Category 3 Product 3
Name Designation
Person 1 D1
Person 2 D2
Person 3 D3
8
Source:
POLYMER MARKET IN INDIA 2012.PPT
Person 4 D4
i i l S h K i
Public: Domestic Company – Company 1 (2/3)
Financial Snapshot Key Ratios
Profit / Loss
Total Income
60 1.5
ProfitINR mn
Total IncomeINR mn
P
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability Ratios
Operating Margin a a1 a2 a3 a4
0
20
40
‐0.5
0.0
0.5
1.0
2011
S
2010
R
2009
Q
2008
Net Margin b b1 b2 b3 b4
Profit Before Tax Margin c c1 c2 c3 c4
Return on Equity d d1 d2 d3 d4
Return on Capital Employed e e1 e2 e3 e4
Return on Working Capital f f1 f2 f3 f4
Return on Assets g g1 g2 g3 g4
Financial Summary
• The company incurred a net profit of INR ‐mn both in FY 2011 and FY 2010
• The company reported total Income of INR ‐mn in FY 2011, registering an increase/decrease of x1 % over FY 2010
Return on Fixed Assets h h1 h2 h3 h4
Cost Ratios
Operating costs (% of Sales) i i1 i2 i3 i4
Administration costs (% of Sales)
j j1 j2 j3 j4
Interest costs (% of Sales) k k1 k2 k3 k4registering an increase/decrease of x1 % over FY 2010
• The company earned an operating margin of x2 % in FY 2011 an increase of ‐‐ percentage points over FY 2010
• The company reported debt to equity ratio of ‐ in FY 2011, an increase of x3 % over FY 2010
Interest costs (% of Sales) k k1 k2 k3 k4
Liquidity RatiosCurrent Ratio l l1 l2 l3 l4
Cash Ratio m m1 m2 m3 m4
Leverage RatiosDebt to Equity Ratio n n1 n2 n3 n4
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR) A1Total Enterprise Value (INR) A2EPS (INR)
Debt to Capital Ratio o o1 o2 o3 o4
Interest Coverage Ratio p p1 p2 p3 p4
Efficiency Ratios
Fixed Asset Turnover q q1 q2 q3 q4
Asset Turnover r r1 r2 r3 r4
Current Asset Turnover s s1 s2 s3 s4
9
Source:
EPS (INR) A3PE Ratio (Absolute) A4
Current Asset Turnover s s1 s2 s3 s4
Working Capital Turnover t t1 t2 t3 t4
Capital Employed Turnover u u1 u2 u3 u4
Improved Decline
POLYMER MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company 1 (3/3)
Key Business Segments Key Geographic Segments
100%80%
100%
50% 100%
0%20%40%60%80%
100%
Key Recent Developments
0%2011
0%2011
Description News
Overview• India’s largest toll manufacturer of engineering thermoplastics having an installed production capacity of ‐‐MTPA with a current production capacity of ‐‐MTPA
• Product range includes p1 p2 p3 and others with PP grades consisting of unfilled PPProducts
• Product range includes p1, p2, p3 and others with PP grades consisting of unfilled PP available in all colours, ‐‐ PP with filler range from A% to B%, ‐‐ filled with filler range from C% to D%, ‐‐ filled with filler range from E% to F% and ‐‐ filled with FR
Miscellaneous• Certain products are manufactured according to customers’ specifications like in the case of both treated and untreated p4 which are sometimes made of polyester PP or PE
10
Source:
of both treated and untreated p4 which are sometimes made of polyester, PP or PE
POLYMER MARKET IN INDIA 2012.PPT
Thank you for the attentionThe Polymer Market ‐ India report is part of Manufacturing Industry Series. For more detailed information or customized research requirements please contact:
Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick
Gaurav KumarPhone: +91 33 4064 6214E‐Mail: [email protected]
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.
Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India
11POLYMER MARKET IN INDIA 2012.PPT
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
