Market Research Report : Foundry Market in India 2012
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Transcript of Market Research Report : Foundry Market in India 2012
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Foundry Market IndiaFoundry Market – India
January 2012
Executive Summary
Market
Foundry market in India registered production of a mn tonnes of castings in 20‐‐ In 200‐, India was the world’s second largest producer of castings and also one of the top 10 in terms of average production per plant It was also the fastest growing top‐10 nation in 200‐, increasing its casting tonnage by b% over 200‐ India currently has over c foundries in the small, medium and large scale sectors with around d units having international quality accreditation Foundry industry is a major feeder to various sectors, automobile sector accounting for the largest share
Drivers Challenges
Drivers & Challenges
– Increasing demand from automobile sector– Strong economic growth– Supportive government participation– Low cost of labour– Improving technology and modernization
– Market constraints– Rising input costs– Low capacity utilisation
Future Outlook
Vision Plan 2020 for Foundry Industry – Initiated by The Institute of Indian Foundrymen (IIF) to recommend initiatives for strong growth and help India emerge as a leading supplier of quality castings to the global market by 2020
Vision Plan 2020 Interventions– In order to realise the Vision Plan 2020 various interventions are required
p g gy
Competition
Vision Plan 2020 Interventions In order to realise the Vision Plan 2020, various interventions are required which aims to benefit the entire value chain and ensure balanced growth of the foundry sector
Major Players
Player 1 Player 2 Player 3
2FOUNDRY MARKET IN INDIA 2012.PPT
Co pet t oPlayer 4 Player 5 Player 6
•Introduction
M k O i•Market Overview
•Foundry Clusters
•Export‐Import
Dri ers & Challenges•Drivers & Challenges
•Competition
•Future Outlook
•Strategic Recommendations
3FOUNDRY MARKET IN INDIA 2012.PPT
•Strategic Recommendations
Foundry market is growing consistently in India and it is the second largest producer of castings in the world
Indian Foundry Market – Overview Production of Castings – Growth
• In 200‐, India was the world’s second largest producer of castings and also one of the top 10 in mn MT
terms of average production per plant
• It was also the fastest growing top‐10 nation in 200‐, increasing its casting tonnage by a% over 200‐
• Indian foundry industry employs around b mn
D%
Production of Castings – Segmentation
Indian foundry industry employs around b mn persons directly and another c mn indirectly
• Production of castings in India took a dip in 200‐ due to the global crisis, but has recovered with strong growth in 20
02011‐2015e2006‐10
K%i%j%
G%h%
Segment 4
Segment 2
Segment 5
Segment 3
Segment 1
growth in 20‐‐
•Growing concern regarding the quality and quantity of castings will drive the establishment of larger casting facilities in India over the next few years
F%
E%
•With growing demand from the automobile and engineering sectors coupled with India’s rapidly growing economy, the foundry market is expected to grow strongly in the near future
x occupy the biggest share of total castings produced
4FOUNDRY MARKET IN INDIA 2012.PPT
Source:
Major Foundry Clusters in India (x/y)
Foundry Cluster: Rajkot
Gujarat Foundry Overview Share of Casting Application
• There are about f foundry units at Rajkot which• There are about f foundry units at Rajkot which mainly cater to the local diesel engine industry
• Geographical spread of the cluster includes Aji Vasahat, Gondal Road and Bhavanagar Road areas
• Majority of the foundry units at Rajkot produces greya%
e%Segment 1
Segment 3
Segment 2Majority of the foundry units at Rajkot produces grey iron castings for the domestic market and ~g% of them exports castings such as electric motor castings
• Around h% of the units use conventional cupola as the predominant melting furnace while a local design
Rajkot d%
c%b%Segment 5
Segment 4
Segment 3
called 'Rajkot cupola‘ is also popular
5FOUNDRY MARKET IN INDIA 2012.PPT
Source:
Drivers & Challenges – Summary
Drivers
Increasing demand from automobileChallenges
Increasing demand from automobile sector
Strong economic growth
Market constraints
Rising input costs
Supportive government participation
Low cost of labour
Low capacity utilisation
Improving technology and modernization
6FOUNDRY MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Products and Services
Ticker Symbol
Stock ExchangeHead Office
Key People
Products and Services
Category Products/Services
Category 1 Product 1, Product 2, Product 3N D i ti
Category 2 Product 1, Product 2, Product 3
Category 3 Product 1, Product 2, Product 3
Name Designation
A
B
C
7
Source:
Category 4 Product 1, Product 2, Product 3 D
Note: The list of products and services is not exhaustive
FOUNDRY MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company (2/3)
i i l S h K iFinancial Snapshot Key Ratios
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating Margin
Net Profit/LossTotal IncomeINR mnINR mn
Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets
002011201020092008
Financial Summary
• The company incurred a net profit/net loss of INR X mn in FY 20XX, as compared to net profit/net loss of INR Y mn in FY 20YY
• The company reported total Income of INR XX mn in FY 20XX, registering an increase/decrease of X per cent over FY 20YY
Return on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)registering an increase/decrease of X per cent over FY 20YY
• The company earned an operating margin of X.X per cent in FY 20XX an increase/decrease of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX, an increase/decrease of X.X per cent over FY 20YY
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity Ratio
b i l iKey Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
Debt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover
8
EPS (INR)
PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover
Improved DeclineSource:
FOUNDRY MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company (3/3)
Key Business Segments Key Geographic Segments
Segment 2Segment 1 Country1 Country 2 Country 3
0% 0%
Key Recent Developments
0%2011201020092008
0%2011201020092008
Description News
Overview • Company is a vertically integrated foundry, performing various machining, surface treatment, and heat treating operations in house
• It specializes in the manufacture of ductile iron and gray iron casting in the weight range of a grams to a i f b k
Product Linemaximum of b kgs
• It produces ductile and gray iron castings weighing less than a pound to over c tons and is an ISO 9001:2000 and ISO/TS 16949 certified company
Expansion Plans • It has acquired a new grinding/fettling center from country
9
Source:
FOUNDRY MARKET IN INDIA 2012.PPT
Thank you for the attentionThe Foundry Market ‐ India report is part of Research on India’s Manufacturing Series. For more detailed information or customized research requirements please contact:
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10FOUNDRY 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.