Market Research Report :Construction chemicals market in india 2013

Construction Chemicals Market IndiaConstruction Chemicals Market – India
Jun 2013

Executive Summary
Market
Construction chemicals is one of the niche segments of the specialty chemicals industry in
India
Growing focus on construction activities in India has led to significant rise in demand for
construction chemicals in the Indian market
Drivers &
Drivers
 Growth in Infrastructure Construction
 Real Estate Development
bl
Challenges
 Low Consumer Awareness
 Lack of Standards
 Price Sensitivity
Challenges
F Ti 2 d Ti 3 Citi
 Rise in Disposable Income
 Healthy Economic Outlook
 Price Sensitivity
 Unskilled Labor
Trends
Focus on Tier 2 and Tier 3 Cities
Use of Silicone‐based Chemicals
Eco‐Friendly Construction Chemicals
Competition
Major Players
Company A Company B
Company C Company D
2
Company E Company F
CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT

•Macro Economic Indicators
•Introduction
•Market Overview•Market Overview
•Construction Chemicals ‐ Classification
•Major Application Areasj pp
•Penetration Rate ‐ Key Segments
•Supply Chain Analysis
•Major Manufacturing Hubs
•Drivers and Challenges
•Trends•Trends
•Competitive Landscape
•Strategic Initiatives
3
Strategic Initiatives
•Appendix

SAMPLEEconomic Indicators (1/3)
Gross Fiscal Deficit: Monthly
600
500
INR bn
x6
x5
x3500
400
300
200
100
x4
x3
x2
x1
Exchange Rate: Monthly
100
0
Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐
g y
55.0
x2
USD/INR
x1
54.0
54.5 x3 x6
x2
x5
x4
4
53.5
Month 20‐‐Month 20‐‐ Month 20‐‐ Month 20‐‐Month 20‐‐Month 20‐‐

Robust specialty chemicals industry has the potential to
attract significant additional investment over the Zth FYP
Specialty Chemicals Industry
Specialty Chemicals – Share of Construction
Chemicals
INR bn
a
X%
b
a
c
Z%
x2
20‐‐
d
e
0
x1
Y%
BA
20‐‐
0
20‐‐e
BA
X%
• Specialty chemicals segment has witnessed a
growth of x% over the zth Five Year Plan (FYP) period
from FY 20‐‐ ‐‐ ‐‐
• Share of construction chemicals segment in the
20‐‐e
5
overall specialty chemicals market is expected to
remain stagnant at the end of the zth FYP
Y%

SAMPLE
Wide range of chemicals find extensive application in
different construction materials
A
• Product 1
B C
• Product 2
• Product 3
• Product 4
• Product 5
• Product 6
• Product 1
• Product 2
• Product 3
• Product 4
• Product 5
• Product 1
• Product 2
• Product 3
• Product 4Product 6
• Product 7
• Product 8
• Product 9
Product 5
• Product 6
• Product 7
Product 4
• Product 5
D E
• Product 1
• Product 1
• Product 2
• Product 3
• Product 4
• Product 2
• Product 3
• Product 4
• Product 5
• Product 6
Major
Applications
6
• Product 6
• Product 7

Product A
Overview
Benefits
A B C D
Penetration Rate ComparisonPenetration Rate – Comparison
%
a
x1
Point 1
b
c
d x4
x3
x2
7
0
Country 4Country 3Country 2Country 1

Drivers & Challenges – Summary
Challenges
Low Consumer Awareness
Drivers
Growth in Infrastructure Construction
R l E D l
Lack of Standards
Price Sensitivity
Real Estate Development
Rise in Disposable Income
Unskilled Labor
Healthy Economic Outlook
8CONSTRUCTION CHEMICALS MARKET IN INDIA 2013.PPT

Focus on infrastructure construction will boost the demand
for construction chemicals in the Indian market
Growth in Infrastructure Construction Impact
• Finding 1
• Finding 2
• Finding 3
• Finding 4
• Finding 5
Planned Investment in InfrastructureInvestment in Infrastructure – As % of GDP
b Z5
%
Z3
a
Z4
Z2
Z1
A B INR bn
x2
b
Z%
c
a
d
x4
e
y5
y4
c
x5
y3
x3
y1 y2
x2
x1
Z1
f
x1d
c
e
9
0
y5
20‐‐‐ 20‐‐‐ 20‐‐‐
y3y1 y2
20‐‐‐20‐‐ ‐‐‐
0
Y Plan Z Plan

Trends – Summary
Focus on Tier 2 and Tier 3
CitiesCities
Key
dTrends
Eco‐Friendly
C i Ch i l
Use of Silicone‐Based
Ch i lConstruction Chemicals Chemicals

Owing to multiple benefits the industry is witnessing a
growing demand for silicone‐based chemicals
Silicone based
chemicals
• Point 1
• Point 2
i
Use of Silicone‐Based Chemicals
Use of A ‐ Advantages
chemicals
gaining
popularity
• Point 3
•Point 1
•Point 2
•Point 3
Major Application Areas of A
B C D
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
‐ ‐
‐

Competitive Benchmarking (1/5)
Public Trading Comparables (FY 20‐‐)
Company 1 Company 2 Company 3 Company 4
Market Capitalization (INR
mn)
‐ ‐ ‐ ‐
Share Price (INR) ‐ ‐ ‐ ‐
EV/EBITDA (x) ‐ ‐ ‐ ‐
/EV/Revenue (x) ‐ ‐ ‐ ‐
PE Ratio ‐ ‐ ‐ ‐

Public: Domestic Company – Company A (1/4)
Company Information Offices and Centres – India
Corporate Address
Address
Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Tel No. 91
Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website website
Year of Incorporation 19‐‐
Products and Services
Ticker Symbol ‐‐‐‐‐‐
Stock Exchange ‐‐‐
Key People
Products and Services
Category Products/Services
Segment Product 1, product 2, product
N D i ti
Head Office
3,………………….
Others Product 1, product 2, product 3………
Name Designation
Person 1 Designation
13
, p , p

i i l S h K i
Financial Snapshot Key Ratios
Particulars
y‐o‐y change
(20‐‐‐‐)
20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability Ratios
Operating Margin ‐0.08 5.26% 5.34% 9.10% 6.86%
i
Net Profit/LossTotal Income
30000
40000 1,500
INR mn
x4
x3x2
x1
INR mn
Net Margin ‐0.95 2.86% 3.81% 5.89% 3.68%
Profit Before Tax Margin ‐0.38 4.25% 4.63% 9.16% 6.76%
Return on Equity ‐2.56 9.62% 12.17% 11.40% 13.39%
Return on Capital Employed 0.77 16.26% 15.49% 17.62% 24.96%
Return on Working Capital 7.01 34.36% 27.35% 26.05% 44.47%
Return on Assets ‐0.76 8.44% 9.20% 11.36% 13.45%
0
10000
20000
30000
0
500
1,000
20‐‐
y4
20‐‐
y3
20‐‐
y2
20‐‐
x1
y1
Financial Summary
• The company earned a net profit of INR  x mn in FY 20‐‐, as
compared to net profit of INR  y mn in FY 20‐‐
• The company reported total income of INR  x mn in FY 20‐‐,
registering an increase of y% over FY 20
Return on Fixed Assets ‐4.71 39.29% 43.99% 56.23% 56.98%
Cost Ratios
Operating costs (% of Sales) 0.12 94.74% 94.62% 90.87% 93.11%
Administration costs (% of
Sales)
1.30 16.92% 15.62% 16.75% 16.99%
Interest costs (% of Sales) ‐0.03 0.27% 0.30% 0.10% 0.50%
registering an increase of y% over FY 20‐‐
• The company earned an operating margin o fx% in FY 20‐‐, a
decrease of y percentage points over FY 20‐‐
• The company reported debt to equity ratio of x in FY 20‐‐, an
increase of y% over FY 20‐‐
Liquidity Ratios
Current Ratio ‐17.36% 1.51 1.83 2.23 1.66
Cash Ratio 26.93% 0.03 0.03 0.37 0.10
Leverage Ratios
Debt to Equity Ratio 29.39% 0.17 0.13 0.00 0.06
Debt to Capital Ratio 25.19% 0.14 0.11 0.00 0.06
Key Financial Performance Indicators
Indicators Value (dd/mm/yy)
Market Capitalization (INR mn) ‐
Total Enterprise Value (INR mn) ‐
EPS (INR)
Debt to Capital Ratio 25.19% 0.14 0.11 0.00 0.06
Interest Coverage Ratio 10.05% 19.42 17.65 88.95 13.78
Efficiency Ratios
Fixed Asset Turnover ‐8.70% 7.47 8.18 6.16 8.27
Asset Turnover ‐6.20% 1.60 1.71 1.24 1.95
Current Asset Turnover ‐4.16% 2.21 2.30 1.57 2.56
W ki C it l T 28 42% 6 53 5 09 2 85 6 46
14
EPS (INR) ‐
PE Ratio (Absolute) -
Working Capital Turnover 28.42% 6.53 5.09 2.85 6.46
Capital Employed Turnover 2.41% 2.88 2.81 1.93 3.42
Improved Decline

Key Business Segments Key Geographic Segments
a
F
C
E
B
D
A BA
18%17%
a
b
0%
e4
d4c4
b4
a4
e3
d3c3
b3
a3
e2
d2
c2
b2
a2
e1 d1
c1
b1
a1
a
b
0% y4
x4
y3
x3
y2
x2
y1
x1
Business Highlights
D i ti N
0%
20‐‐20‐‐20‐‐
d2
20‐‐
e1 d1 0%
20‐‐
y
20‐‐
y
20‐‐
y
20‐‐
y
Description News
Overview
• Company A is one of the leading chemical companies operating in the global market with
around x manufacturing units around the world
• Company A , a division of Company B, engages in the production of construction
chemicalschemicals
Brand/Product Launch
• In Mar 20– Company A launched a new brand X for the construction industry
• Solutions provided under the new brand name include chemical solutions used for new
construction, maintenance, repair and renovation of buildings and infrastructure
• Environment friendly and innovative coating and paints solutions were launched in Y 20‐‐
15
• Environment friendly and innovative coating and paints solutions were launched in Y 20
held in City A

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Phone: +91 22 4098 7600
The Construction Chemicals Market – India 2013 report is a part of Netscribes, Inc.’s Manufacturing
Industry Series.
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16
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Market Research Report :Construction chemicals market in india 2013

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Market Research Report :Construction chemicals market in india 2013