Market Research Report: Construction Chemicals Market in India 2014 - Sample

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Construction Chemicals Market India

November 2014

Executive Summary
Market

Construction chemicals market stood at INR xx bn in 20-- and is expected to reach INR yy bn in 20--, growing
at a CAGR of about z%
Growing focus on construction activities in India has led to significant rise in demand for construction
chemicals in the Indian market
Challenges

Drivers

Drivers and
Challenges

Growth in Infrastructure Investment

Low Consumer Awareness

Increase in Urban Housing

Lack of Standards

Rise in Disposable Income

Price Sensitivity

Steady Economic Growth

Unskilled Labor

Continuous FDI Inflow

Trends

Focus on Tier 2 and Tier 3 Cities


Use of Silicone-based Chemicals
Eco-Friendly Construction Chemicals
Rising Compliance with International Manufacturing Standards

Key Players

Competition

Company A

Company B

Company C

Company D

Company E

Company F

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Macroeconomic Indicators
Introduction
Market Overview
Construction Chemicals - Classification
Major Application Areas
Penetration Rate - Key Segments
Supply Chain Analysis
Major Manufacturing Hubs
Sector-wise Demand
Drivers and Challenges
Trends
Recent Developments
Opportunity Areas
Competitive Landscape
Strategic Initiatives
Appendix
CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Economic Indicators (1/3)


GDP at Factor Cost: Quarterly
INR tn
15

13

d1
c1
b1

12

a1

14

c4
b4
a4

c3
b3
a3

d2
c2
b2
a2

11

Q1

Q2
2010-11

2011-12

2012-13

Q3
2013-14

Q4

Inflation Rate: Monthly


%
2
1

r
q

0
-1

-2

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Nov 2013 - Dec 2013


4

Specialty Chemicals Domestic Market Overview


Specialty Chemicals Market Size and Growth

Market Segmentation Based on Product Type-20--

INR bn
x4

a1

y2
Z%

x4

a2

Construction Chemicals
Paints and Coatings

x3

Specialty Polymers

a6

y1
x2

a3

Homecare Surfactants
Plastic Additives

x1
a5

0
20--

a4

Others

20--e

Specialty chemicals are high value low volume chemicals used mainly because of its performance improving properties
Global specialty chemicals industry accounts for b% of the global chemical industry in 20- Indian specialty chemicals industry is expected to reach INR cc bn by 20-- and INR dd bn by 20- By 20--, Indian cities are likely to contribute p% of the total population and this rise in urbanization will drive the
growth of specialty chemicals
Rise in urbanization will boost investments in residential, industrial and commercial sector and increase demand for paints and coatings,
specialty polymers, construction chemicals, home care surfactants, paper chemicals, cosmetic chemicals, plastic additives among others

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Construction chemicals cater to demand from diverse


projects across different construction sectors
Indian Construction Chemicals Market Growth
INR bn
b4

P%

b3

x4

b2

x1

x2

x3

20--

20--

20--e

x7

x6

x5

b1
0
20--e

20--e

20--e

20--e

Construction Chemicals Market Segments


Focus on the quality and standards of construction has
led to a surge in demand for construction chemicals
Construction chemicals industry in India is dominated by
the organized segment

Organized

Unorganized

y1

Top 3 4 players operating in the market account for


nearly q% of the overall market share
Though use of construction chemicals increases the
project by d-e%, these chemicals increases the longevity
of the end product and improves performance
CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

y2

Drivers & Challenges Summary

Challenges
Drivers
Growth in Infrastructure Investment

Low Consumer Awareness


Lack of Standards

Increase in Urban Housing

Price Sensitivity

Rise in Disposable Income

Unskilled Labor

Steady Economic Growth


Continuous FDI Inflow

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Trends Summary

Focus on Tier 2 and Tier 3 Cities

Use of Silicone-Based Chemicals

Key Trends
Rising compliance with international
manufacturing standards

Eco-Friendly Construction Chemicals

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Opportunity Areas Summary

Opportunity Areas

Gujarat

Madhya Pradesh

West Bengal

Orissa

Indian states are focusing on infrastructure development as the primary vehicle to drive economic
growth
Emphasis on construction of infrastructure facilities provides a huge scope for the development of the
construction chemicals market in India

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Porters Five Forces Analysis

Threat of New Entrants

Impact
X

Bargaining Power of Suppliers

Impact
X

Impact
X

Competitive Rivalry

Impact
X

Bargaining Power of Buyers

Impact
X
Threat of Substitutes

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

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Competitive Benchmarking (1/5)


Public Trading Comparables
Company A

Company B

Company C

Company D

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

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Public: Domestic Company Company A Ltd. (1/4)


Company Information
Corporate Address

Offices and Centres India

Company A, Street A
City B
State C

Tel No.
Fax No.
Website
Year of Incorporation
Mumbai

Ticker Symbol

Head Office

Stock Exchange

Products and Services


Category

Products/Services

Key People
Construction
Chemicals

Others

Name

Designation

Person 1

Chairman, Managing Director

Person 2

Chief Executive of Manufacturing

Person 3

Director of Legal, Compliance

Person 4

Vice-President of Business and


Markets-South Asia

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

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Public: Domestic Company Company A Ltd. (2/4)


Financial Snapshot
Total Income

INR mn

x2

Net Profit/Loss

INR mn

b2

x4
x3

Key Ratios
y4
y3

a2
b1
a1

c1

x1
2010

c2

2011

Financial Summary

2012

d2
d1
2013

The company reported total income of INR d1 mn in FY 20--,


registering an increase of p% over FY 20- The company earned an operating margin of x.x% in FY 20--, an
increase of y.y % points over FY 20- The company reported debt to equity ratio of w.w in FY 20--, an
increase of z.z% over FY 20--

Key Financial Performance Indicators


Market Capitalization (INR)
Total Enterprise Value (INR)
EPS (INR)
PE Ratio (Absolute)

y1
y0

y-o-y change
(2013-12)

2013

2012

2011

2010

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

The company incurred a net loss of INR d2 mn in FY 20-- as


against INR c2 mn in FY 20--

Indicators

y2

Particulars

Value (dd/mm/yyyy)

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

Decline

13

Public: Domestic Company Company A Ltd. (3/4)


Key Business Segments
Agricultural Solution

Key Geographic Segments


Plastics

Functional Soln.

Performance Products
Chemicals
Others
p3
x2
x3
x4
x1
y3
y2
y4
y1
p2
z3
z4
z2
c3
c4
c2
z1 b1
a2
a3
a1
c1
b2
b3
b4
p1
20--

20--

20--

20--

India

Foreign

s2

s3

s4

20--

20--

20--

100%
50%

s1

0%

d1
20--

Key Recent Developments


Description

News

Overview

The company is one of the leading chemical companies operating in the global market
with around pp production sites around the world
The companys construction chemicals division, owned by Z Group, operates in India,
Bhutan and Nepal

Product Launch

In Mar 20-- the company launched a new brand K for the construction industry
In FY 20--, the company began the production of direct dyes and launched smart coats for
paper coatings

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

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Public: Domestic Company Company A Ltd. (4/4)

CONSTRUCTION CHEMICALS MARKET IN INDIA 2014.PPT

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Thank you for the attention


Construction Chemicals Market India report is part of Netscribes Manufacturing Industry
Series.
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