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AutoAncillaryMarket India
March2013

ExecutiveSummary
Market
AutoancillarymarketinIndiaisexpectedtoreachINRa9bnin201516,growingataCAGRofz2%fromINRa5 bnin201112 Enginepartsaccountforthelargestshare,representingb1%ofthetotalautocomponentmarket Drivers: GrowingAutomotiveIndustry HealthyEconomicOutlook AutoAftermarketDemand GrowingInvestments OpportunityfromNewUSITComplianceLaw Challenges: ExposedtoCyclicalDownturnsintheAutomobileIndustry RisingLabourCostsandPriceofRawMaterials CounterfeitMarket TechnicalInefficiency DepreciatingCurrency

Drivers& Challenges

Government Initiatives

UnionBudget201213 NationalAutomotiveBoard National N i lA Automotive i T Testing i and dR&DInfrastructure I f P Project j (NATRIP) ExportIncentives ACMAInitiatives Diversification RisingPE/VCInvestments FocusonQuality AdoptionofGreenStrategies IncreasingForeignPresence ChangingDesign

Trends

Competition

Marketcomprisesofalargenumberofdomesticplayersandsteadilyincreasingparticipationfromforeign players,mainlythroughmergers&acquisitions SomeofthemajorplayersinthemarketarePlayer1, 1 Player2 2,Player3 3,Player4 4,Player5 5,Player6 6,Player7 7, Player8,Player9,Player10,Player11,Player12,Player13,Player14,Player15,Player16,Player17,Player18 andothers
AUTOANCILLARYMARKETININDIA2013.PPT

MacroEconomicIndicators MarketOverview Segments S t


MajorSegments Major j SubSegments g

OpportunityAreas ExportImport Drivers&Challenges GovernmentInitiatives Trends CompetitiveLandscape Strategic g Recommendations Appendix


AUTOANCILLARYMARKETININDIA2013.PPT

Indianautoancillarymarket,exhibitingrapiddevelopment andisexpected

SAMPLE
AutoAncillaryMarket Overview

Autoancillarymarketisoneofthefastestgrowingsegmentwithinthemanufacturingsectorin India
AutocomponentmarketisexpectedtogrowataCAGRofz2%toreachINRa9bnin201516fromINRa5 bnin201112

Indiahasthepotentialtobecomeoneofthetopautocomponenteconomiesby20 Thereare~xorganizedplayerscontributingtoy%ofthetotalautocomponentoutput,while theunorganizedsectoraccountsfortherest


Unorganizedautocomponentsectorcomprisesof~zplayers,mainlyinthereplacementmarket,orareTier pandTierqmanufacturers Primarily,Type1dominatetheIndianautocomponentmarket

Indian I di auto t ancillary ill sector t h hasb becomeal lucrative ti market k tf forth theglobal l b linvestors i t asth the countrysoverallautomobileindustryisexpectedtowitnessaufoldincreaseindemandby20 alongwiththebusinessfriendlyenvironment,favorablepoliciesandavailabilityofskilled manpoweratacomparativelylowercost

AUTOANCILLARYMARKETININDIA2013.PPT

togrowatasteadypaceoverthenextfiveyears
AutoAncillaryMarketSize&Growth
INRbn +z2% +z1%

SAMPLE

2008

2009

2010

2011

2012

2013e

2014e

2015e

2016e

MarketSegmentation Sectorwise
INRbn

SalestoOEMs

Exports

Aftermarket

Imports 5

AUTOANCILLARYMARKETININDIA2013.PPT

Autoancillaryindustrywillgenerateemployment opportunitiesandalsocontributetocountrysGDP
ContributiontoEmploymentGeneration ContributiontoGDP

Creatingxtoymn additionaljobs
000Person a3 a4 +z1% 29% a2 29% a1 28% 71% 72% 71%

SAMPLE
% +z2%

2009

2015e Direct Indirect

2020e

2009

2015e

2020e

AUTOANCILLARYMARKETININDIA2013.PPT

AutoancillarymarketinIndiaisexpectedtowitnessrobust growthintermsofproduction,exportsaswellasimports
AutoAncillaryMarket FutureOutlook

INRbn

SAMPLE
+z% a2 i2% a1 e1% p1% i1% p2% e2%

a3 i3%

e3%

p3%

2011

2016e

2021e

Imports p

Exports p

DomesticProduction

AUTOANCILLARYMARKETININDIA2013.PPT

ValueChainAnalysis

SAMPLE
BaseRawMaterialProducers SemiFinishedMaterial
Type3 T 2 Type TierrManufacturers TierqManufacturers Autopart1,Autopart2,Autopart3etc. Function3,Function4,Function5, Function6,Function7,Function8, Function9

RawMaterial1,RawMaterial2,RRawMaterial3,RawMaterial4,RawMaterial5

SemiFinishedMaterial1,SemiFinishedMaterial2,SemiFinishedMaterial3

T 1 Type TierpManufacturers Function1

Market1 Type4/Type5Market

Market2

Intermediaries EndUsers
AUTOANCILLARYMARKETININDIA2013.PPT

Opportunitiesdifferacrossmanufacturerspositionedat variouslevelswithintheautoancillarysector

SAMPLE
DomesticTier1Supplier

Indiabasedglobalsupplier

DomesticTier2/3Supplier SmallLocalEntrepreneur Opportunity4 Opportunity3 Opportunity2 Opportunity1

AUTOANCILLARYMARKETININDIA2013.PPT

AutoAncillaryMarket Segments(1/3)

SAMPLE
Segment1 Segment2 Segment3 Segment4 Segment5 Segment6 Other

AutoAncillaryMarket Segmentation(201011)
b7% b % b6% b1% b5%

b b4% b3%

Autocomponentsindustryhasbeenclassifiedintosixbroadsegments: Segment1representthelargestsegmentwithb1%shareofautocomponentmarket Thisisfollowedbysegment2withb2%share Segment3andSegment4accountforb3%shareeachintheentireproductrange Segment5andSegment6representb5%andb6%respectively

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AutoAncillaryMarket Segments(2/3)
Segment1

SAMPLE
Segment2 Outlook
Finding g 1 Finding2 Finding3 Finding4

Finding g 1 Finding2 Finding3 Finding4

These Th fall f lli intothree h b broad dcategories: i


Category1 Category2 Others

Subsegments

Majorpartsinclude:
Part6,Part7,Part8andPart9,Part10, etc.

Majorpartsinclude:
Part1,Part2,Part3,Part4,Part5,etc.

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SAMPLE
Segment1 Subsegment g 1 Subsegment2 Sub S bsegment t3 Subsegment4 Subsegment5 Sub Subsegment6
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Subsegment1(1/2)
Subsegment1 Demand
mnunits +z%

SAMPLE
MajorPlayers&StrategicAlliances
Company Player1 Collaboration Player7,Country1
2015e 2020e

2011

2012

2013e

2014e

Player2

Player8, Pl 8 C Country2; 2 Player10,Country3; Player11,Country4 Player12,Country5 Player13,Country6 Player14, 14 Country7

ProductVariation
Player3
Type1 Type2 Type yp 3 Type4 Type5 Type6 Type7 Type8 b4% b3% b8% b6% b7% b1%

Player4 Player5 Player6

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Subsegment1(2/2)
Regionwise

SAMPLE
MarketSegmentation Sectorwise
d3% d1%

c4% c1% c3%

South

North

West

East

Replacement

OE

Export

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OpportunityAreas Summary
Autoancillarymanufacturingplantsshouldbebuiltnear themajorautomobileproductionorassemblyfacilitiesto capitalizeonthegrowingopportunitiesprovidedbythe existingaswellastheemergingautohubsinIndia

SAMPLE
State1 State2andSurrounding

Automobile ProductionHubs i India in I di

State3

St t 4and State dS Surrounding di

OpportunityAreafortheauto ancillarymanufacturers

State5
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AUTOANCILLARYMARKETININDIA2013.PPT

State1 OpportunityAreas

SAMPLE
State1 AutoHub
Company Company1 Company2 Company3 State1 Place3 Company4 Place5 Place6 AutoancillaryunitsinPlace2, Place5andPlace6playa significantroleinsupporting thedevelopmentofState1as anautohub

Place1

Place4 Place2

MajorAutoHubs

MajorAutoancillaryHubs
AUTOANCILLARYMARKETININDIA2013.PPT

EmergingAutoancillaryHubs
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AutomajorsestablishingmanufacturingplantsinState1, resultinginahigherdemandforautoancillaryunits
State1 AutoIndustryScenario

Finding1
Subfinding1 Subfinding2

Finding3 Finding4
Subfinding3 Subfinding4

Finding5
Subfinding5

Finding6

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State1islikelytoattractinvestmentowingtoitsfavourable environment

SAMPLE
GovernmentSupport LocationAdvantage

Finding1 Finding2

State1 GrowthDrivers `

Finding1 Finding2

H Human Resource R Development D l t Finding1


Subfinding1

Finding g 2 AvailabilityofLand Finding1 Finding2


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AUTOANCILLARYMARKETININDIA2013.PPT

Growthofexportshavebeenhamperedbytheturbulent globaleconomicscenario
Exports Overview
Finding1
Subfinding1 Subfinding2

Exports(Value)
INRbn

+z%

Finding3
Subfinding3 Subfinding4

Finding5
2008 2009 2010 2011 2012 2016e 2021e

ExportDestinations20
b4% b5% b6% b1% b3% Region1 Region2 Region3 R i 4 Region Region5 Region6

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Drivers&Challenges Summary

Challenges
ExposedtoCyclicalDownturnsinthe AutomobileIndustry

Drivers
GrowingAutomotiveIndustry HealthyEconomicOutlook AutoAftermarketDemand GrowingInvestments Opportunity O t it f fromNew N USIT ComplianceLaw

RisingLabourCostsandPriceofRaw Materials CounterfeitMarket TechnicalInefficiency DepreciatingCurrency

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Growthintheautomobileindustryisexpectedtogenerate hugeorder
GrowingAutomotiveIndustry(1/3)
Finding1
Subfinding1

Impact

Finding2
Subfinding2

Finding3

GrowingAutomotiveIndustryTurnover
INRtr +z1%
000units

RisingPassengerVehicleProduction

+z2%

2011

2016e

2009

2010

2011

2012

2016e

2021e

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UnionBudget201213hashittheautoancillaryindustryin bothadvantageousaswellasdisadvantageousways

SAMPLE
UnionBudget201213

Finding1 Finding2 Finding3

NegativeImpact

PositiveImpact

Impact1 Impact2 Impact3 Impact4

Impact1 Impact2 Impact3

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Trends Summary

SAMPLE
Diversification RisingPE/VCInvestments
FocusonQuality

KeyTrends
`

AdoptionofGreenStrategies

IncreasingForeignPresence

Ch Changing i D Design i

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Public:DomesticCompany Company1(1/4)
CompanyInformation
CorporateAddress TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange Address1 +91xx yyyyyyyyy +91wwzzzzzzzz www.xxx.com BombayStockExchange(BSE) HeadOffice NewDelhi

SAMPLE

OfficesandCentres India

ProductsandServices
Products Product1,Product2,Product3,Product4,Product5,Product6, Product7,Product8,Product9,Product10,Product11,Product 12 P 12, Product d t13 13,P Product d t14, 14 Product P d t15 15,P Product d t16 16,Product P d t17 17, Product18,Product19,Product20,Product21,Product22, Product23,Product24,Product25andProduct26

KeyPeople
N Name Person1 Person2 Person3 Person4 D i ti Designation MDandExecutiveDirector VPofFinanceandAccounts CEOofSubsidiary1 MDofSubsidiary2

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Public:DomesticCompany Company1(2/4)
Financial i i lS Snapshot h
Total Income INR mn

SAMPLE
K Ratios Key i
Particulars INR mn

Net Profit/Loss

yoychange 2011 (201110)


2010

2009

2008
Decline

ProfitabilityRatios
OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets

b1

b2 2009

b3

b4

2008

2010

2011

FinancialSummary
ThecompanyincurredanetprofitofINRa4mninFY2011,as comparedtonetprofitofINRa3mninFY2010 ThecompanyreportedtotalincomeofINRb4mninFY2011, registeringanincreaseofx%overFY2010 Thecompanyearnedanoperatingmarginofp%inFY2011,an increaseofqpercentagepointsoverFY2010 ThecompanyreporteddebttoequityratioofrinFY2011,an increaseofz%overFY2010

CostRatios
Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales)

LiquidityRatios
CurrentRatio CashRatio

LeverageRatios
DebttoEquityRatio Debt b toCapital i lRatio i InterestCoverageRatio

KeyFinancialPerformanceIndicators
Indicators
MarketCapitalization(INRmn) TotalEnterpriseValue(INRmn) EPS(INR) PERatio(Abs)(/07/2012)

Value(/07/2012)
x1 x2 x3 x4

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover

Improved

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Public:DomesticCompany Company1(3/4)
KeyBusinessSegments
AutomotiveComponents
100% 50% 0% 100%

SAMPLE
India
50% 0%

KeyGeographicSegments

x1%

Finding1

x2%

Finding2

2011

2011

BusinessHighlights(1/2)
Description News Companyisengagedinmanufacturingandsalesofintegratedautomotivecomponents primarilyinCountry1,Country2andCountry3 Itproducespartsforsegment1,part1,part2andpart3forsegment2,segment3,andsegment4
andsegment5 Also,itmanufacturescomponentsforvarioussectors,suchasthesector1,sector2,sector3,sector 4,sector5,sector6andsector7

Overview

FundRaising

InMar201,companyhadraised~INRxbn viaissuanceofforeigncurrencyconvertible bondstofundacquisitionsandothercapitalinvestments Previously,inJan20,companysboardwasallowedtoraise~INRybn viaforeigndebtinstruments,


suchasGDRs,ADRs,FCCBsorothersecuritiesconvertibleintoequity
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StrategicRecommendations Summary

SAMPLE
Recommendation1 Recommendation2

Key Recommendations `

Recommendation3

Recommendation4

Recommendation5

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Thankyoufortheattention
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