CNG Cylinders in India: A Challenging Road to Opportunity

April 2013

Eurion Constellation

Edition 2013
All Rights Reserved Copyright 2010-13 by Eurion Constellation
No part of this report may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher or author.

Contents
7
7 7

Industry Introduction
Market Definition Value Chain Analysis

Executive Summary

10 Investment Perspective 11 Growth Drivers

11 11 12 12 14 14 Global Warming and Government Regulation Cost Economy Cost of Oil Imports Infrastructure Adoption by Original Equipment Manufacturers Retrofitting

15 Demand
15 International Market 17 Domestic Market

18 Supply

19 SWOT Analysis
19 Strengths
19 High Entry Barriers 20 Government Support 20 Technology and Quality

20 Weaknesses
20 Deterrents in Engine Conversion

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April

2013

CNG Cylinders in India: A Challenging Road To Opportunity

15 Demand and Supply

20 Safety Concerns 21 Excess Dependence on Government Regulations

22 Opportunities
22 Low Penetration 24 Cost Economies 24 Consumer Purchasing Power

25 Threats
25 Insufficient Availability of Natural Gas 30 Increasing LNG Import Bill 31 Cost of Raw Materials 32 Threat from Substitutes

33 Cost Factors 34 Raw Materials and Technology

34 Current Technology: Type I Cylinders 34 Future Technology: Type III and IV Cylinders

36 Regulation and Government Policies

36 36 37 37 Government Policies and the History of CNG Adoption in India Fiscal Incentives City Gas Distribution Network Design and Quality Standards

38 Key Players
38 40 40 41 42 42 Player Player Player Player Player Player I II III IV V VI

43 Review 44 References
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April

2013

CNG Cylinders in India: A Challenging Road To Opportunity

Exhibits
Table 1: Emissions by CNG Vehicles as Compared to Petrol and Diesel Vehicles........................11 Figure 1: Annual Oil Import Bill in India........................12 Figure 2: Gas Refueling Stations in India........................13 Table 2: Growth of Natural Gas Vehicles Worldwide (Numbers in Thousands)........................15 Figure 3: Number of Natural Gas Vehicles in Asia Pacific........................16 Figure 4: Annual Growth of Natural GasVehicles in Worldwide as Compared to A-Pac .......................16 Table 3: Growth of Natural Gas Vehicles in India .......................17

Figure 5: Growth of Natural Gas Vehicles in India.......................17 Table 4: Installed Capacities of Top Players in India .......................18

Table 5: Proportion of Natural Gas Vehicles and Fueling Stations (2011) .......................21 Table 6: Proportion of Natural Gas Vehicles to Total Vehicles (2011) .......................22

Table 5: Proportion of Natural Gas Vehicles and Fueling Stations (2011) .......................23 Figure 6: Energy Consumption by Fuel (2011)......................24 Figure 7: Natural Gas Off-take by Segment (2011-12)......................25 Figure 8: Regional Natural gas Reserves (2011)......................26 Table 8: Proven Natural Gas Reserves by Country (In Trillion Cubic Meters)......................27 Figure 9: Indian Share in Asian Natural Gas Reserves (2011)......................27 Table 9: Variance in Production of Natural Gas (In Billion Cubic Meters) ......................28 Figure 10: Planned vs. Actual Production of Natural Gas in India......................29 Figure 11: Future Demand and Availability of Natural Gas in India.....................30 Figure 12: LNG Import Bill in India.....................31 Figure 13: Manufacturing Processes of Type I CNG Cylinders....................35 Figure 14: Key Financial Metrics for Indian Operations (Player I)....................39 Figure 15: Key Financial Metrics for Consolidated Operations (Player I)....................39 Figure 16: Key Financial Metrics (Player II)....................40 Figure 17: Key Financial Metrics (Player III)....................41 Figure 18: Key Financial Metrics (Player IV)....................42
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April

2013

CNG Cylinders in India: A Challenging Road To Opportunity

Key Numbers at a Glance

1.1 mn 2X.X%
Domestic
NGVs 2011 CAGR 2003-11 Operating Margin

Revenue Growth

~3%

XX.X%

Estimated Cylinder Demand by 2015

X mn

Global

15.2 mn 2X.X% ~X5 mn

NGVs 2011 CAGR 2003-11 NGVs Estimate 20XX

Industry Introduction
Market Definition
The market for on-the-board CNG cylinders is driven by the retrofitting and OEM segments. Retrofitting involves conversion of existing petrol-based models to CNGbased vehicles through the installation of CNG Kits. OEM (Original Equipment Manufacturers) segment is constituted of the vehicles that are designed and manufactured on CNG fuel model. Automobile makers produce CNG compatible engines that give better performance and last longer than the retrofitted engines. Currently, the market is dominated by Type I steel cylinders. The composite (Type III and Type IV) cylinders space is expected to develop over the next couple of years. This reports deals with on-the-board Type I CNG cylinders and prospects of CNG cylinders for vehicles in general.

Significant improvements over previous editions extended analysis and new statistics Updates and new factors added due to changed industry dynamics

Limited Period Discount*

Value Chain Analysis Comprehensive SWOT analysis (14 pages) and growth drivers - includes current and future influencers Demand (statistical estimates) and supply More indepth performance analysis of all the key players, including latest financial data for private players Brief about upcoming technologies In-depth coverage of enabling infrastructure and inputs Detailed tables, graphs, and charts for all data analysis Reliable data sources Government departments, state agencies, information services, and trade associations Explanation of cylinder manufacturing methods, including process chart User-friendly format and layout

* Limited period offer ** Buy online over secured payment gateway. Online delivery within 24-48 hours of placing the order

OR visit http://goo.gl/pJED9g

Eurion Constellation. All Rights Reserved. Web: www.eurionconstellation.com. Email: contact@eurionconstellation.com.

April

2013

CNG Cylinders in India: A Challenging Road To Opportunity

Eurion Constellation A Gurgaon, HR, IN E contact@eurionconstellation.com W www.eurionconstellation.com

About Eurion Constellation

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