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Elevator and Escalator Market India

February 2015

Executive Summary
Market
Overview

Drivers &
Challenges

Global elevator and escalator market is expected to grow at a CAGR of x% through 20-- to 20-- to
reach INR yy bn in 20- Indian elevator market is expected to grow at a CAGR of z% through FY 20-- to FY 20-- to reach p
units in FY 20-Drivers:

Challenges:

Real Estate Development


Increased Migration to Urban Areas

Safety Issues due to Ill-Maintained


Equipment

Growth in Disposable Income as well as


Aged Population

Lack of Trained Manpower and NonMandatory Regulations

Continuous FDI Inflow


Growth in Infrastructure Investment
Introduction of Green Elevators

Key Trends

Emergence of Smarter and Faster Elevators


Increasing Role of Elevator Consultants
Key Players

Competitive
Landscape

Company A Ltd.

Company B Pvt. Ltd.

Company C Pvt. Ltd.

Company D Pvt. Ltd.

Company E Pvt. Ltd.

Company F Pvt. Ltd.

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Macroeconomic Indicators

Introduction
Market Overview
Export-Import

Drivers & Challenges


Government Initiatives
Trends

Competitive Landscape
Market Opportunities
Strategic Recommendations

Appendix
ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Rising real estate demand from emerging countries to boost


global elevator and escalator market

SAMPLE

Market Overview Global (1/2)


Global elevator and escalator market is expected to grow at a CAGR of P% through 20-- to 20-- to reach INR x6 bn in
20 Elevator and escalator market is primarily composed of two segments new equipment installations and
maintenance and modernization segments of already installed equipment
Emerging markets such as China, India and Brazil are driving the new equipment installation market while the
maintenance and modernization segment is recording stable growth in Europe and the Americas
OTIS, Schindler, ThyssenKrupp and KONE dominates the global elevator and escalator market with a market share of
around z%

Global Elevator and Escalator Market Size and Growth (Value-wise)


INR bn
P%

y4
y3

x1

x2

x3

x4

20--e

20--e

20--e

x5

x6

20--e

20--e

y2
y1
0
20--

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Second largest elevator market in the world, Indian elevator


market holds huge growth potential

SAMPLE

Market Overview India (1/2)

Market Segmentation Product-wise

Indian elevator market is expected to grow at a CAGR of


p% through FY 20-- to FY 20-- to reach x6 units in FY 20- Indian elevator market is expected to be driven by the
residential real estate sector with the market opting for
safer and energy efficient auto-door elevators
The average cost of buying and installing an elevator
varies from INR z1 to few millions depending upon the
technology, brand, number of stops and complexity faced
during installation

Residential
Others
q1%

q2%

Indian Elevator Market Size and Growth (Volume-wise)


Unit
y5
y4
y3
y2

P%
x1

x2

FY 20--

FY 20--e

x3

x4

x5

x6

y1
0
FY 20--e

FY 20--e

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

FY 20--e

FY 20--e
5

SAMPLE

HS Code: 84282020 (1/4)

Export of Elevators (Value-Wise)


INR mn

Z%
b2

b1

a3

b4

a2

b3

a1
0
FY 20--

FY 20--

Exports Based on Value Country-Wise


FY2013

FY 20--

FY 20--

Exports Based on Value Country-Wise


FY2014

p1

x1

p2
x2

x7
x3
x4
x6

x5

p3

q1

y2

q2

y1

q3

p4

y3

p5
p6
p7

q4
q5

q6

y7

y4

y6

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

q7

y5

Drivers & Challenges Summary

Drivers
Real Estate Development

Challenges

Increased Migration to Urban Areas

Safety Issues Due to Ill-Maintained


Equipment

Growth in Disposable Income as well


as Aged Population

Lack of Trained Manpower and NonMandatory Regulations

Continuous FDI Inflow


Growth in Infrastructure Investment

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Booming real estate sector is expected to generate huge


demand for elevators

SAMPLE

Real Estate Development

Impact

Real estate sector comprises residential housing, commercial offices, trading spaces and industrial
parks
Government initiatives such as the implementation of the Special Economic Zone Act, liberalization of
FDI investments and PE investments in real estate has led to the development of the sector and has
indirectly contributed to an increase in application of elevators and escalators
Use of elevators and escalators has also increased owing to rise in residential and non-residential
projects in tier II and tier III cities
Development of the real estate sector will translate into a growth in demand for elevators in India

Real Estate Market Size and Growth

Real Estate Market Segmentation 20--

INR tn

Residential

y3
y2

x1

x2

x3

x4

x6
x5

Commercial

p1

y1
p2
0
2013

2014e

2015e

2016e

2017e

2018e

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Trends Summary

Introduction of Green
Elevators

Key
Trends
Increasing Role of Elevator
Consultants

Emergence of Smarter and


Faster Elevators

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Porters Five Forces Analysis

SAMPLE
Impact

Threat of New Entrants

Impact

Impact

Bargaining Power of Suppliers

Impact

Competitive Rivalry

Bargaining Power of Buyers

Impact

Threat of Substitutes

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Competitive Benchmarking (1/3)

SAMPLE

Key Ratios of Top 3 Companies Operational Basis (FY 2014) (1/4)


Operating Margin

Net Margin

x2

a4

y2

y1

a3

x3
y3

a2
a1

x1

0
Company A

Company B

Company C

Company B recorded highest operating margin of x2%, followed by Company C and Company A which recorded
operating margin of x3% and x1% respectively
Company B recorded a net margin of y2%, higher than that of Company A and Company C which recorded net margin
of y1% and y3%

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SAMPLE

Private: Domestic Company Company A Ltd. (1/5)


Company Information

Offices and Centres India

Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation

Mumbai

Products and Services


Category

Head Office

Products/Services

Key People

Name

Designation

Person 1
Y

Person 2

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SAMPLE

Private: Domestic Company Company A Ltd. (2/5)


Shareholders of the Company
Name

Ownership Structure

No. of Shares held

X1

X2

X3

X4

X5

X6

X7
Total

Foreign Holdings

Bodies Corporate

Nationalized or Other Banks

Other Top Fifty


Shareholders

Others

x1
x2
x3
x4

x5

X8

Note: AGM as of 22nd Sep 2014


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SAMPLE

Private: Domestic Company Company A Ltd. (3/5)


Financial Snapshot

Key Ratios

Total Income

INR mn

INR mn

a3
a2

Particulars

Net Profit/Loss
y4

y3

y1

b4

y2
b3
x2

x1

x3

x4

a1

b2
b1

20--

20--

20--

20--

Financial Summary
The company earned a net profit of INR y4 mn in FY 20--, as compared to
net profit of INR y3 mn in FY 20- The company reported total income of INR x4 mn in FY 20--, registering an
increase of p% over FY 20- The company earned an operating margin of z1% in FY 20--, an increase of
z2 percentage points over FY 20--

y-o-y change
(2014-13)

2014

2013

2012

2011

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

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

ELEVATOR AND ESCALATOR MARKET IN INDIA 2015.PPT

Decline

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SAMPLE

Private: Domestic Company Company A Ltd. (4/5)


Business Highlights
Description

News

Overview

Company A Ltd. manufactures, installs, maintains and modernizes escalators, elevators and moving walkways
Installed base of more than zz escalators and elevators throughout India

Manufacturing
Facility

Manufacturing unit in Bangalore which was expanded in 20-- to thrice its initial size
Bagged a contract to supply xx escalators to Delhi Metro Rail Corporation for phase III of Delhi Metro project in 20-

Major Projects

Entered into an agreement to supply yy elevators and pp escalators to Hyderabad Metro Rail project in 20--

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SAMPLE

Private: Domestic Company Company A Ltd. (5/5)

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Strategic Recommendations

SAMPLE

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Thank you for the attention


Escalator and Elevator Market India report is part of Netscribes Manufacturing Industry
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