automobilies & auto ancillaries setor presentation
TRANSCRIPT
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Unnati Sector Presentation
Automobiles and Auto AncillariesSSA- Selva Kumar
JSAs- Anish Surana, Varun Baxi
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OVERVE!
The Indian automobile industry is the seventh largest and the
second fastest growing in the world with the total production of
23.36 million units.
The contribution of the automotive industry to GDP has risen from
2.! in "##2$#3 to around ! now. The industry employees about 2# million people directly or
indirectly.
The Indian %utomotive industry embar&ed on a new 'ourney in
"##" with delicensing of the sector and subse(uent opening up for
")) per cent *DI through automatic route.
Improving income levels+ strong technological capability have been
boosting automobile demand in the country for past few years
India is emerging as an e,port hub.
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"#US$R% &'US$ERS
The automobile industry is concentrated in &ey regions/orth0 Delhi$Gurgaon$*aridabad1est0 umbai$Pune$/ashi&$%urangabadast0 4ol&ata$5amshedpurouth0 7hennai$8engaluru
Source: ACMA
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SALESTRENDS
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(ARKE$ SE)(E"$S
%utomobile
s
Two 1heelers
otorcycles
cooters
opeds
Three 1heelersGoods carriers
Passengercarriers
Passenger@ehicles
Passenger cars
Atility vehicles
ulti purposevehicles
7ommercial@ehicles
Bightcommercial
vehiclesedium
commercialvehiclesCeavy
commercialvehiclesTractors
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(ARKE$ S*ARE BREAK#O!"
Two wheelers constitute the ma'or portion of %uto industry witharound :"! of mar&et share by volume.%s far as revenue is concerned 7@ forms the ma'or part of therevenue earned thus the prot per unit is more in case of 7@.
Source: ICRA research reports
"3!
3!
3!
:"!
Market Share by volume
Passenger @ehicles
7ommercial @ehicles
Three 1heelers
Two 1heelers
9!
"#!
2!
#!
Market Share by Revenue
7ommercial
@ehicles
Passenger
@ehicles
Two 1heelersothers
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&OS$BREAK#O!"
a'or costs involved in case of the auto industry is raw material costBowering of commodity costs thus have resulted in the escalation of protmargins for auto sector.
9!
"!2!
"!
9!
3!
Cost Breako!n
=aw aterials
Power E *uel 7ost
mployee 7ost
;ther anufacturing
,penseselling and %dministration
,penses
iscellaneous ,penses
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VA'UE &*A"
Source: Unnati Research
uppliersF= Tier "E2
uppliers%utoma&ers
F;s Dealers 7ustomers
*inancing E Insurance
=ecycling =epairs Ased @ehiclebuyers
Ased @ehicle=etailers
%fter aleservices
Transportation
=egulations E certications
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Porter+siveorce
"#gh Com$et#t#ve R#valry% "))! *di and proliferation of nationaland international players.
Moerate threat o& ne! entry%
Bow due to high capital re(uirementbut foreign players have doneconsiderably well
Moerate threat o& subst#tute%Public transportation system
"#gh barga#n#ng $o!er o&customers% ultiple optionsavailable and high competition
Lo! barga#n#ng $o!er o&
su$$l#ers% Cigh dependenceof suppliers on ;s.
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$!O !*EE'ERS - Overvie
Indian Two$1heeler Industry is the largest in the world asfar as the volume of production and sales are concerned .
India is the biggest two$wheeler mar&et on this planet+registering an overall growth rate of #.9 percent between2))6 and 2)"9
The volume growth recorded in the 2)"$"9 scal yearstood at a commendable ".: percent on a year$on$yearbasis
The estimated revenue of the two wheeler segment hasgrown to about =s 99 8illion with the sales of about ":million units in 2)"$2)"9
;verall growth was mainly driven by the scooters segmentwhich saw a strong growth of 29.2 per cent 7%G= 2)"$2)"9
otorcycle segment saw a modest growth of .# percent7%G= in *? 2)"$2)"9.
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$!O !*EE'ER . Sales $rends / (ar0et se1ments
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Ke2Pla2ers
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KE% )RO!$* #RVERS
Rural Deman
The scope for rural penetration is huge as only 32 per "))) inhabitantshave 21. Good monsoon+ increased penetration of the players in terms ofdealership networ& will fuel growth
(avorable emogra$h#cs
. %round 33! of IndiaHs population of ".2 billion belongs to the age brac&etof 2)$) years. "9) million people will be added to the wor&ing population inthe ne,t ve years. The increasing number of women in the urban wor&force will lead to the growth of gearless scooters
Lo! &uel $r#ces
)ner Develo$e Publ#c trans$ortat#on
Due to underdeveloped public transportation system in the urban areas andthe congested tra>c situation in the urban areas people are preferringscooters which are easy to drive and maneuver
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KE% )RO!$* #RVERS . &ontd3
*ro!th #n Scooter Segmento =apid urbanisation and growth in income is causing high sales in
scooter segment witnessing around "9$"6! growth. /ew modellaunches including %ctiva i+ ?amaha =ay has helped this segment togrow
Growing reach of established players.
ntry of new players.
Increasing options of consumer nance to aid low income rural consumers.
KE% &O"&ER"S
Distribution costs
Dependency on rural economy which in$turn is highly depended on naturaland policy factors.
nvironmental and safety concerns
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(ARKE$ S*ARE " $!O !*EE'ER "#US$R%
)!
2!
""!
"3!
#!
T!o +heeler market
Cero otorcorp CI 8a'a' %uto
Tvs otors ;thers
29!
9!
"!
!
"!
3! "! !
Motorcycle Market Share8a'a' %uto Btd.Cero oto7orp
Btd.
Conda
otorcycle E
cooter India
FPvt Btd
India ?amaha
otor Pvt. Btd.
ahindra E
ahindra Btd.
=oyal neld
otors
"#!
9:!
9!
"!
"!"6!
Scooters Market ShareCero oto7orp
Btd.
Conda otorcycle
E cooter India
FPvt Btd
India ?amaha
otor Pvt. Btd.
ahindra E
ahindra Btd.
Piaggio @ehicles
Pvt Btd
uu&i otorcycle
India Pvt. Btd.
T@ otor
7ompany Btd.
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OU$'OOK
The two wheeler industry which grew at about #.3 percent in *? "9 saw aslowdown in the second half of the scal due to the wea& rural demandowing to poor and untimely monsoon the poor demand ma'orly impactedthe demand of the motorcycles. In the current scal also in the rst half thedemand for the motorcycles is estimated to remain low.
cooters are e,pected to drive the demand for the two wheelers owing tothe increasing urbaniation+ growing middle class and increase in femalewor& force+ convenience factor+ higher utility perceived in intra$citytransport+ growth in demand from urban and semi$urban areas+ and betterrural infrastructure.
Due to the lower commodity pries the operating margins are e,pected toincrease in this scal.
Due to the slowdown in the global economy e,ports may get hit on thewa&e of wea& global demand.
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$*REE !*EE'ERS - OVERVE!
India is the worldHs foremost producer+ consumer and e,porter of three$wheelers F31 over ) ! of the worlds three wheeler ply on the Indianroads.
The domestic mar&et has registered an impressive growth of ").: ! during*? "$"9 in contrast to de$growth of ").#! witnessed during *? 2)"
The demand improvement during the last scal has primarily been led bypic&$up in the passenger carrier segment+ which has beneted by freshpermit issuances across various cities.
During the year+ three$wheeler e,ports+ which contribute almost 3! toindustry sales+ have also grown by a healthy "9.! over the previous yearprimarily on account of higher demand from outh$ast %sian and %frican
mar&ets
ales of goods carriers continue to be under pressure with new
product introductionsin the Bight 7ommercial @ehicle FB7@ segment
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SA'ES $RE"#
Total 31 sales have grown at a 7%G= ")! over the past ve yearsfrom 2)):$)# to 2)"$"9
,port contribution has also risen from 3)! in 2)):$)# to 2! in2)"$"9 with 8a'a' %uto being the largest e,porter of three
wheelers.
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(ARKE$ S*ARE
The Passenger Carrier segment is
dominated by Baa Auto !o""o#ed by
Piaggio and T$S
The %oods Carrier segment is
dominated by Piaggio !o""o#ed by
M&M #hi"e Baa has a "o# mar'et
share due to their !ocusing on
passenger carriers on"y
Source: Mac(uairie Research report
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)RO!$* #RVERS A"# &O"&ER"S
DR,-ERS Greater reach within the area compared to other public transport means li&e
metro+ buses.
Ideal for congested roads of India particularly because of increasingurbaniation.
Inade(uacy of public transport to server the last mile transportation needs of
population. *easibility of carrying goods from low accessible areas li&e Tier 3 cities.
Bow cost of ownership compared to ta,is and small commercial vehicles.
elf$employment opportunity for youth.
Bow operating costs both for passenger and goods carriers.
C.NCERNS
1ith the successful launch of four$wheeled mall 7ommercial @ehiclesFmainly Tata %7+ the industry dynamics have altered J especially for thecargo segment+ considerably over the last ve years.
Introduction of 8a'a' =6) which is scheduled early ne,t year is e,pected tocreate some turbulence in passenger carrier segment
afety concerns due to an open tubular structure in passenger carriers aswell as odd number of wheels which add to instability
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OU$'OOK
Passenger transportation segment has been the engine of growth for the threewheelers mar&et and is e,pected to continue to do so.
The future of the passenger transportation segment is going to depend a loton the mar&et response to = 6) a (udaricycle by 8a'a' %uto which ise,pected to be launched later this year. Kuadricycle is going to open an entire
new segment in automobile industry.
The cargo transporters have started preferring B7@s over lorry for carrying thefreight. The goods transportation segment is facing a stiL competition fromthe B7@s li&e ahindraHs chota hati+ %sho& BeylandHs B7@ and many others
1ith the continual up$ gradation in the B7@ segment it is going to get tougherfor the goods transportation segment
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PASSE")ER VE*&'ES - OVERVE!
Indian passenger industry has seen a drastic change in the post liberaliationera with Indian manufacturers li&e aruti uu&i+ Tata otors+ ahindra Eahindra+ e,panding their operations and global manufacturers li&e Cyundai+Conda+ &oda coming up with their range of vehicles from small cars to A@sand sedans.
The economic recovery coupled with introduction of new models+ easy
availability of nance and aggressive pricing by almost all the players hashelped the industry to post strong growth over the past few years
The domestic P@ mar&et has grown at a 7%G= of "".6! in the past ve yearsand e,ports growth has slowed at a 7%G= of ").6!
Passenger vehicle penetration in India is as low as " vehicles per ")))people ma&ing it one of the lowest penetration levels among the &eydeveloped and developing countries.
The industry hit a low of .9! decline in sales during *? "3$". In 2)"$"9+ agradual improvement in consumer sentiments with e,pectations of a higherGDP growth+ lower vehicle prices following e,cise duty cuts+ and launch ofnew models led to a 3. per cent growth in sales of cars E A@s. Bower cost ofownership following a drop in crude oil prices also aided the boost in demand.
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SA'ES$RE"#S
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(ARKE$SE)(E"$A$O"
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)RO!$* #RVERS
Lo! $enetrat#on levels
7urrently the penetration levels in India for passenger vehicles is at " per"))) compared to world average of " per ")))
,ncreas#ng $er ca$#ta #ncome
GDP growth rate of around $:! for the last four years has outpaced the
growth rate of many developed countries has been only ne,t to 7hina in termsof percentage growth rate.
(avourable emogra$h#c $ro/le
%round )! of IndiaHs population of ".2 billion belongs to the age brac&et of2)$99 years. This young population and changing lifestyles of the consumers+provide a huge opportunity to ;s to penetrate and e,pand their mar&ets.
Lo! o#l $r#ces
Lo! E0c#se Duty
Lo! cost o& o!nersh#$
7heap nancing costs available
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(ARKE$ S*ARE
92!
22!
:!
6!
"2!
Passenger Cars Market Sharearuti uu&i India
Btd.
Cyundai otors India
Btd.
Conda IB 7ars
India Btd.
Tata otors
others
3)!
2!
""!
!
!
9!""!
)- Market Share
ahindra E
ahindra Btd.
aruti uu&i
India Btd.
Toyota 4irlos&ar
otor Btd.
Tata otors
*ord India Btd.
=enault India
others
93!33!
"!
-ans Market Share
aruti suu&i
T8B
Tata otors
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OU$'OOK
%fter witnessing tepid sales in 2)"$"9+ passenger vehicles sales are e,pected toimprove in 2)"9$"6 on the bac& of economic growth bolstering the consumersentiments
The lower penetration of Passenger vehicles provides a long term opportunity for
the @ehicle manufacturers. ; have lined up a slew of new launches in the
compact cars segment to attract rst$time customers
1hile the prices of diesel and petrol have been sliding+ the diLerential betweenthem has narrowed. This has led to consumers opting for cars operating on petrolas diesel$operated cars are more e,pensive. The utility vehicles segment+ which
ma'orly comprises of diesel$variants+ will also suLer on account of this. The
segmentHs sales growth is e,pected to decelerate during 2)"9$"6.
anufacturers have thus planned new launches in order to spur sales of thesegment. ost of the launches are in the compact utility vehicles segment+ whichoLers the features of a utility vehicle at a lower price and reduced sie. These
vehicles are oLered in petrol$variants as well. These will supplement sales of theutility vehicles segment.
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&O((ER&A' VE*&'ES - OVERVE!
The 7@ industry is cyclical in nature as the demand depends on the pace ofthe overall economic growth FGDP and industrial activity in particular FIIP.%mong segments+ EC7@s tends to be more inMuenced by the macro$economic indicators than B7@s.
The current share of freight tra>c in India through road is around 69!+
which is much higher when compared to other countries li&e A E 7hina.
The domestic 7@ industry gradually came out of the down cycle during *?2)"9 after two years of demand contraction. During the year+ the EC7@segment recorded a growth of "6.)! in unit sales primarily led by sharpuptic& in replacement demand for Ceavy 7ommercial @ehicles FC7@s and
improvement in bus sales on bac& of TA orders
EC7@ segment seems to have bottomed out+ the B7@ Truc& segment isstill e,periencing sluggish trends Fdown "".6! ?o? as signicant capacityaddition over the past few years and constrained nancing environmentamidst rising delin(uencies remains a challenge for the segment
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(ARKE$ SE)(E"$A$O"
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SA'ES$RE"#S
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(ar0etShare
!
29!
"9!
6!
3! !
C- Market ShareTata otors
T8B
%sho& Beyland
Btd.
@7@s $ icher
*orce otors
Btd.
;thers
99!2#!
""!
3! 2! 2!
M"C- Market ShareTata otors
%sho& Beyland
Btd.
@7@s $
icher
wara' ada
Btd.
T8B;thers
3!
3#!
!
9!6!
LC- Market Share
Tata otors
T8B
%sho& Beyland
Btd.
*orce otors
Btd.
;thers
)!
2)!
":!
#!
"3!
Passenger Carr#ersMarket Share
Tata otors%sho& Beyland
Btd.
*orce otors
Btd.
@7@s $
icher
others
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)RO!$* #RVERS
Improved industrial activity
Aptic& in agricultural output
=eplacement demand
Implementation of =egulations on ;verloading
Demand from TA
Demand from unorganied sector
Improved bus operator protability
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KE% &O"&ER"S
7ompetition in B7@
Cigh Dependence on economicscenario
tiL competition from railways
low income growth
Cigh inMation rate
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OU$'OOK
Cealthy growth in sales coupled with declining steel prices aided inregistering prot at the operating level. /ew launches in the passengervehicles segment along with strong medium E heavy commercial vehiclesFEC7@s sales+ bolstered sales growth. Improving sales growth hasresulted in better capacity utiliation levels+ which accompanied bydeclining steel prices aided in containing raw material costs
The e,pected improvement in industrial activity+ steady agricultural outputand strong focus on infrastructure pro'ect e,ecution+ along with continuedcapacity constraints in =ailways+ is e,pected to drive demand for C7@s
% shift towards higher tonnage vehicles+ commissioning of dedicated freightcorridors FD*7s+ and the structural decline in transporter protability overthe last 3$ years are e,pected to restrict further rise in sales of B7@.
Demand for buses is e,pected to be driven by steady growth in urbanpopulation and demand from schools and corporate+ improved roadinfrastructure and increase in inter$city travel. Cowever+ implementation ofmetro rail and mono rail pro'ects in several cities could hit further rise in bussales
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$RA&$ORS - OVERVE!
The Tractor industry has always been a barometer for the state of rural economy inIndia.
The tractor industry did well in the last 9 years because of good monsoons+ easyavailability of nance and initiatives from government to boost up agriculture andagricultural machinery industry
carcity of farm labour+ healthy credit availability+ moderate penetration andshortening replacement cycle are the ma'or demand factors
Domestic tractor sales volume declined by "3.)! during *?"9 owing to host ofunfavorable factors which include delayed and decient monsoons+ decline in 4harifoutput+ softening commodity prices+ modest increases in P of ma'or crops+ lower
realiations in cash crops+ altered rabi sowing pattern owing to delay in 4harifharvest and farm losses due to e,tensive crop damages due to unseasonal rainfalland hail storms in several &ey rabi cropping states
The Indian tractor industry has been classied into small+ medium and large tractors+based on the engineNs horsepower Fhp
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Sales$rends
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Domestic ,port !D;TI7 !
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(ARKE$ S*ARE
ahindra E ahindra Btd.O 3:!
T%*O 2!
International Tractors Btd.O "2!
scorts Btd.O ")!
5ohndeereO !
othersO #!
Market Share
9"!
22!
""!
")!6!
Market Share 1u$to 23h$4ahindra E
ahindra Btd.
T%*
@T
International
Tractors Btd.
others
36!
3)!
"!
2)!
Market Share 125673 h$4
ahindra E
ahindra Btd.
T%*
scorts Btd.
;thers
3"!
26!
"6!
"2!
")!9!
Market Share 185 an above h$4
International
Tractors Btd.
ahindra E
ahindra Btd.
5ohndeere
/ew Colland
India
scorts Btd.
;thers
3!
23!
")!
#!"9!
Market Share 175683 h$4
ahindra E
ahindra
Btd.
T%*
scorts Btd. International
Tractors Btd.
others
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)RO!$* #RVERS
Irrigation facility and monsoons
Bandholding sie
table farm incomes
asy availability of credit
carcity of farm labour
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KE% &O"&ER"S A"# SA'ES $RE"#
Source: ICRA research reports
Labour Cost% Babour forms the second mostimportant cost component for the tractor industryit is a labour intensive industry. 1ith the risinglabour costs the protability of the tractor industry
gets hampered.
Ra! Mater#al costs% Pig iron and steel forms #)$#9 percent of the total weight of tractor thus
becoming the ma'or raw material used in tractor.1ith the Muctuation in the commodity prices theprotability of the tractor industry gets aLected.
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OU$'OOK
Indian metrological department has released the monsoonforecast and predicted there are "2 ! of decientmonsoons. ;wing to the distributed and decient monsoonsthe sales for the tractors are e,pected to decline in thisscal. The third consecutive crop has been aLected by the
monsoons in rst (uarter of *?"6 the recovery for tractorsdoes not loo& promising in K2 as well.
Cowever on the account of rise in infrastructuredevelopment pro'ects and removal of bans from mining
sector the commercial demand for tractors is e,pected torise in *? "6.
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Auto Ancillaries - Sector Overvie
=s. 2+3: billion F
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Auto Ancillaries - Sector Overvie
:9!
"9!
Turnover Breaku$
;rganised Anorganised
2))#$") 2)")$"" 2)""$"2 2)"2$"3 2)"3$" 2)"$"9)
9))
")))
"9))
2)))
29))
$9
)
9
")
"9
2)
29
3)
39
)
"3:6
"::3
2)62"6) 2""
23:
Industry Turnover Fin ))N 7r Growth rate
,nustry Turnover
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(ar0et Se1mentation
.EM Market 7apacities and Production in
line with schedule of ;
=e(uirements
Kuality Delivery chedule Price 7ompetitiveness Pro,imity
Demand further segregated
based on various vehicle
segments
9!22!:!:!9!!!2!"!"!
Market Segmentat#on
P@s Two wheelers Tractors
C7@ 7@ B7@Three wheelers 8ac&hoeloaders
;thers
7@
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(ar0et Se1mentation
Re$lacement Market
%cts as a teadying *actor
8etter 8argaining Power
E0$ort Market
India emerging as a %uto 7omponent hub
India %dvantage0
Bower anufacturing 7ost
uperior Product Kuality
hift to Cigh$Tech products
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ndustr2 &lassi4ication
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ndustr2 Brea0u5
Source: ACMA
3"!
"#!"2!
")!
#!
"#!
ngine Parts
Drive+ Transmission E
teering Parts
uspension and
bra&ing parts
(uipment
lectrical parts;thers
Segment +#se Prouct#on Breaku$
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(a6or Pla2ers b2 Se1ment
7omponent a'or Players
ngine Parts 8osch+ India Pistons+ =ane ngine @alves+8harat *orge+ %mte& %uto+ paco7arburettors+
Drive
Transmission Eteering Parts
%,le India+ 1heels India+ 8harat Gears+
ona 4oyo+ * teering+ 7lutch %uto+=ane 8ra&e Bining
uspension E8ra&ing Parts
8ra&es India+ =ane 8ra&e Bining+ 5amna%uto+ un'al howa
(uipment otherson umi+ Phoeni, Bamps+ Buma,+
Premier Instruments and 7ontrols+ 5ay8harat aruti
lectrical Parts 8osch+ Bucas T@
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Value &hain
8ase =aw aterials
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)roth #rivers and Ke2 &oncern
*ro!th Dr#vers%
Growth in Domestic %utomotive Industry
=eplacement Demand
,ports healthy growth of "9$2)! $ =upee depreciation
=ising share of revenues from non$automotive segment
;nset of festive season
9ey Concern% Threat of poor monsoon
purious parts
*ree Trade %greements
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OU$'OOK
India a favourable destination for investment owing to
Infrastructure Development
Cuge Domestic ar&et
Cigher Purchasing Power
Growing thrust on localisation and e,panding businesses in new
geographies
The components industry to grow at a relatively faster pace than the
auto ; segment
The auto component industry aims to cross the AD ")) billion mar&
by 2)2) as well as have e,ports amounting to AD 39$) billion.
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$2re ndustr2 - Overvie
The sie of the Indian tyre
industry is estimated at
around =s 9)bn
India has thirty$nine large and
medium tyre manufacturing
companies
Top ") players account for
over #9 percent of the
countryNs total tyre production
a'or Players J =*+ %pollo
tyres+ 54 tyres+ 7eat+ 8irla
Source: Crisi"
2!
"#!2)!
"3!"2!
!3!2!
.verall Market Share
=* Tyres %ppollo Tyres
;thers 54 Tyres
7%T Btd T@ richa&ra
Btd.Goodyear India *alcon Tyres Btd.
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Value&hain
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Value&hain
Ma:or ,n$uts Natural Rubber Petroleum Base Proucts
62!"!
6!
"!
Breaku$ o& .$erat#ng Costs
=aw aterial 7ost
;perating argins
mployee 7osts;ther ,penses
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Value&hain
Ma:or Proucts
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Value&hain
Ma:or Proucts
6"!
2:!
""!
,nustry Share 6 Market +#se
=eplacement
;
,port
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$2re ndustr2 . Radialisation
% radial tyre is a particular design of the tyre which reduces therolling friction of the tyre
%chieves better fuel e>ciency than vehicles with cross$ply tyres. The current levels of radialisation in India are0
In the A+ 7hina and urope+ up to #)! of truc&s run on radialtyres =adial tyres cost 29! more than 7rossplyFor bias tyres as the
proportion of synthetic rubberQnatural rubber is more for radialtyres. 8ut the margins from radial tyres are also higher.
Cence it presents a great opportunity for tyre manufacturers
especially in commercial vehicles segment.
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$2re ndustr2 . )roth #rivers and Ke2 &oncerns
*ro!th Dr#vers%
Demand from ;s
Demand from =eplacement ar&et
Bow =aw aterial 7osts
9ey Concerns%
7heaper Imports
Inability to pass on the price rise to ;s
=adialisation 7ompetition in ,port ar&et
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OU$'OOK
% softer input costs regime over the past one year
Cuge Domestic ar&et
Cigher Purchasing Power
Indian tyre industry is e,pected to show some healthy growth in
coming years
Curdles towards attaining growth could be raw material related price
volatility+ rupee appreciation and the looming threat of cheap 7hinese
imports
The Indian tyre companies have to ma&e a growth strategy of
continuous innovation and increasing emphasis on product
diLerentiation
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Batter2 ndustr2 . Se1ment ise Brea0u5
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Batter2 ndustr2 . (a6or Pla2ers
Ma:or Players$,ide industries+ %mara =a'a 8atteries+ C8B
Power ystems Btd Buminous Power Technologies Pvt Btd+ u$
4am Power ystems Btd+ 8ase 7orporation Btd
@irtual duopoly in the industry with the top two players+ ,ide
and %mara =a'a commanding over :)! of the organied mar&et
share
Anorganied sector contributes 6)$69! of the replacement
mar&et. It dominates the tractor and commercial vehicle
segments
Source: ICRA research reports
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Batter2 ndustr2 - )roth #rivers / Ke2 &oncerns
*ro!th Dr#vers%
Growth in %utomotive Industry
Growth in telecom and AP
segments
Power hortage
/ewer product applications
Government policy
9ey Concerns%
7heaper Imports from 7hina
Anorganied ar&et
Ancertainty in lead price
:)!
":! 2!
Battery ,nustry Cost Structure
Bead E
%lloysPolypropylene
;thers
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OU$'OOK
The battery mar&et in India is e,periencing growing demandCuge
Domestic ar&et
7onventional sources
/on$7onventional sources
% healthy rise in the sale of batteries can be e,pected
8oth ,ide Industries and %mara =a'a 8atteries are e,pected to
report a healthy rise in sales
Cowever+ the growth in prots will be restricted Dropinleadprices
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Thank You;