The report titled “Indian Luxury Boats Industry Outlook to 2020” provides insight on the market size, segmentation by category and geography, growth drivers and restraints of the industry. The report entails SWOT analysis, competitive landscape and future outlook of this niche industry. The report finally maps out conservative and optimistic scenario future projections to 2020 on the basis multi-factor regression model.

1. Indian Luxury Boat Industry Outlook to 2020
May, 2012

2. Table of Contents
 Luxury Boats Market Introduction 5
Market Definitions 6
Market Assumptions 7
Industry Stage & Structure 8
 Market Size by Value & Volume, FY’2007-FY’2011 9
Slump in Growth in the Market for Luxury Boats in India in the Last 2 Years 10
Why This Small Market Size?: Supporting Facts 11
 Drivers & Restraints 14
Unbalanced Industry Growth With Several Unresolved Problems 15
Huge Growth Potential but Need to Clear Major Roadblocks First 16
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3. Table of Contents (Contd.)
 Market Segmentation By Volume, Value & Geography 17
Pounding Luxury Boats Segment of 55ft+ Driving the Value Demand 18
Mumbai and Kochi – The Epicenter of Boating Industry 19
 SWOT Analysis 20
Compelling Opportunities Thriving the Luxury Boats Industry Growth 21
 Competitive Landscape 22
Market Centered Around Four Major Dealers 23
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4. Table of Contents (Contd.)
 Future Outlook and Forecasting Model 24
Unexplored Potential With Stimulative Reforms & Infrastructure 25
Strong Positive Correlation Among Luxury Boats, AMCs & Trained Manpower 26
Multi Factor Regression Analysis 27
 Future Projections to 2020 28
Conservative Scenario: Expected Slack in Policy Structure & Infrastructure Development 29
Optimistic Scenario: Expected Amendments in Government Reforms with Marina
Development 30
 Research Methodology 31
Statistical, Data Collection Methods and Final Conclusion 32
 Disclaimer 33
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5. Luxury Boats Market Introduction:
Industry Stage & Structure
 The luxury boat industry in India is at a ~ stage
 The Indian luxury boat market is an import driven market. Some of the major
Industry Stage countries which export luxury boats in India…
 A high percentage of boat owners are from…
 A heavy excise duty of nearly ~% is charged on luxury boats…
 Mahindra & Mahindra and Honda through its subsidiary Honda Siel India
Present (HSIL) are the only players manufacturing 22-30ft boats in India, but they
Scenario are yet to produce a luxury boat.
 Df
 Dfdf
Challenges  Dfddf
 df…
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6. Market Size:
Slump in Growth in the Luxury Boats Market in India in the Last 2 Years
Cumulative Boat Sale by Volume
 The luxury boat market in India has 240.0
showcased phenomenal growth of ~%
200.0
in the last 5 years
160.0
 Market bulged more than ~ times
120.0
from ~ boats in FY’2007
80.0
 The last two years have been worst
40.0
effected with a major decline in the
sale of luxury boats due to recession 0.0
FY'06-07 FY'07-08 FY'08-09 FY'09-10 FY'10-11
 .....common practices followed in India Cumulative Boat Sale by Value (INR Crore)
and there is no support from the.....
800.0
 Many boats although purchased by Growth
Indian intermediaries are not even..... 600.0 Slumped to
~% in
FY’2010-11
 Indians tend to register their boat in....
400.0
200.0
0.0
FY'06-07 FY'07-08 FY'08-09 FY'09-10 FY'10-11
Source: AM Mindpower Solutions
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7. Why This Small Market Size :
Supporting Facts: Restrictive Infrastructural Support in Terms of Marina
 The development of marina is one of the basic necessities for boat owners.
Marina: A Basic Even though an individual has the capacity to afford a boat, in the dearth of
Necessity marinas, he/she will not have the berthing facilities and is unlikely to go ahead
with his/her purchase decision.
 There is only one marina in India which is functional in Bolgatty Island in Kochi.
India’s Sole Marina The marina offers world class facilities in terms of water, electricity, sewage
in Kochi pump out locations, pool, gym, golf course and recreational facilities and can
hold up to 34 yachts. The marina was built at a cost of nearly USD 1.8 million.
No Substantial  Many sites have been proposed for developing a marina near Mumbai such as
Development for Mandwa, Belapur, Vasai Creek, Malad Creek and Dharamatar Creek but
Proposed Sites nothing significant has come up.
Lack of Economic  With the present state of economic and political scenario, the development of
and Political more marinas will be a long term goal.
Support
Key Takeaways:
.
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8. Drivers & Restraints:
Unbalanced Industry Growth With Several Unresolved Problems
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9. Market Segmentation
Pounding Luxury Boats Segment of 55ft+ Driving the Value Demand
Luxury Boat Market Segmentation by Volume
 The Indian luxury boat market is 200
dominated by the 33ft-50ft boat
160
segment in volume terms
120
 Presence of 125 luxury boats of 33-
50ft in FY’10-11 (71.4% of total 80
luxury boats)
40
 Though less in number, 50ft+ luxury
boats contribute 65% to the total INR 0
650 Crore Luxury Boats Market in FY'06-07 FY'07-08 FY'08-09 FY'09-10 FY'10-11
50ft & above 33ft-50ft
FY’10-11
 The segment has trebled from the Luxury Boat Market Segmentation by Value (INR Crore)
level in FY’06-07 700
 Dubai-based Majesty Yachts, UK head- 600
quartered Sun Seeker and Princess and 500
Italy based Azimut and Feretti are 400
major suppliers of luxury boats in India
300
 The market has witnessed a growth in 200
the business as several foreign players
100
are eyeing the Indian market with 60-
0
70% reduction in demand for pleasure
FY'06-07 FY'07-08 FY'08-09 FY'09-10 FY'10-11
boats in Europe and the US
50ft & above 33ft-50ft
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10. Market Segmentation
Mumbai and Kochi – The Epicenter of Boating Industry
Indian Luxury Boats Market Segmentation on the
Basis of City, Volume, FY’10-11
 Mumbai, Kochi and Goa account for
90% of the total luxury boats sold in Number of Boats Sold in Volume of Boats
the country the Country Sold
 The three regions are surrounded by
Mumbai
waterfronts and offer the berthing
places in a nearby vicinity.
Kochi
 Other regions such as
Chennai, Vishakhapatnam are the Goa
upcoming regions in the country.
Chennai
 Gujarat is regarded as one of the
upcoming destinations once it opens
Mangalore
up its shores for boats docking and
berthing
Port Blair
 The development of marinas would
be the biggest factor which will drive Visakhapatnam
the sale of boats in the mentioned
regions. Total
Source: AM Mindpower Solutions
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11. Competitive Landscape:
Market Centered Around Four Major Dealers
NAME EXPERTISE KEY CONTACTS
Brands on Offer Services Offered
 Yacht management services
 Boat repairing
 Silver Craft
 Consulting
 Oryx Mr. Aashim Mongia
 Training
 Majesty
 Establishing water sports centres and
marinas
 Azimut  Marina development and management
 Atlantis  Boat management services
 Nautor’s Swan  Luxury and commercial boating Dr. Malav Shroff
 Lagoon Catamarans manufacturing
 Mahindra Odyssea
 Ferretti 550  Handling of imports
 Jeanneau SO 45  Commissioning of boat
 GulfCraft Ambassador 36  Warranty service Major General S
 SilverCraft Sports-Fisher  Maintenance services and boat Dutta
31 management
 Laser Performance
 Training services at Mandwa beach
 Hobie Cat
 Services for school and college going Mr. Shakeel
 NeilPryde Windsurfing
students Kudrolli
 Cabrinha Kites
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12. Future Outlook:
Unexplored Potential With Stimulative Reforms & Infrastructure
Future View:
Future Outlook:
 Improvement in the infrastructure such as development of marinas will play a key role for
future success of this industry
 With the rising population of rich individuals increasing in the country and tropical climate to
go along with huge coastline, India will emerge as the favorite destination for foreign players
who are targeting this new market.
 The luxury boat market is in a embryonic stage but it is expected that the market in the
country will enter in the growth stage in the next decade. The state & central government
need to play a major role in improving the infrastructure and development of marinas in the
country.
 The country may also witness local manufactured ships giving competition to foreign products
with Mahindra & Mahindra and Honda Siel India entering into the foray.
 New avenues for luxury boating could also be seen in the coming years with Chennai and
Gujarat expected to emerge as new destinations.
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13. Forecasting Model:
Strong Positive Correlation Among Luxury Boats, AMCs & Trained Manpower
Pearson Correlation Matrix of the Indian Luxury Boats Industry
Pearson Correlation Trained Number of Visitors Attending Number of
HNWI
Matrix Manpower AMCs Boat Shows Luxury Boats
HNWI 1 0.645 0.795 0.776 0.458
Trained Manpower 0.645 1 0.958** 0.969** 0.965**
Number of AMCs 0.795 0.958* 1 0.999** 0.864*
Visitors Attending Boat
0.776 0.969** 0.999** 1 0.880*
Shows
Number of Luxury
0.458 0.965** 0.864 0.880* 1
Boats
Source: SPSS Analysis
Notes:
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
Analysis:
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14. Future Projections: Conservative Scenario to 2020
Expected Slack in Policy Structure and Infrastructure Development
Major Industry Factors: Current & Conservative
Projections Conservative Scenario:
 Lack of support: In this scenario, it is
Major Industry
FY’10-11 FY’14-15 FY’19-20 expected current economic and industry
Factors
conditions will persist in the future with low
government involvement.
HNWIs1
 Low Infrastructure Development: There
will be no other marinas being developed till
Number of Trained
Individuals 2020 accompanied with dearth of boarding
facilities and trained professionals
Number of AMCs  Growing Complexity for Dealers: Many
dealers will go out of business due to
litigations and tax evasions issues along
Visitors Attending
Boat Shows with the slack in the increase in the number
of AMC’s
Number of  In this scenario, the HNWIs are expected to
Luxury Boats2 increase at a CAGR of 11.8% till 2020.
 The number of cumulative luxury yacht sold
CAGR3 till date will increase and reach 245 boats
by 2015 and to 377 boats by 2020.
Source:
Using Regression Model Y= a+bx1+bx2+…
CAGR Calculated on the base year of 2010-2011
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15. Future Projections: Optimistic Scenario to 2020
Expected Amendments in Government Reforms with Marina Development
Major Industry Factors: Current & Optimistic
Projections Optimistic Case:
 Marina Development: Under the
Major Industry
FY’10-11 FY’14-15 FY’19-20 optimistic scenario, the conditions are
Factors
expected to improve in the coming years
with at least one more marina being
HNWIs1 developed in the country.
 Increased Demand for AMCs and
Number of Trained
Trained Personnel: With the advent of
Individuals
marina, it is expected that the demand for
Number of AMCs trained professionals and AMC’s will also
increase in order to support the
functioning of a marina.
Visitors Attending
 The number of trained manpower is
Boat Shows
expected to reach 391 people by 2020
 Stimulative government reforms: The
Number of Luxury
Boats2 government will also amend the obsolete
reforms and will introduce a check on tax
evasion issues by many individuals.
CAGR3
 The number of cumulative luxury boats
Source: sold till date will increase at a CAGR of
Using Regression Model Y= a+bx1+bx2+… 11.36% and will reach 461 yacht by 2020
CAGR Calculated on the base year of 2010-2011
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