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Faucet Industry in India 2014
Faucet Industry in India 2014
com
India - Snapshot
North
Population growth 1.4% p.a
Jammu West
and Land Area 3.29 mn sq km
South
Kashmir
East
Himachal Population density 324 persons per sq km
Pradesh
Punjab Form of government Democracy
Uttarakhand
Haryana Arunachal
New Delhi Pradesh Number of States 29 states & seven union territories
Jaipur Lucknow Sikkim
Rajasthan Uttar Pradesh Assam Capital New Delhi
Nagaland
Bihar Meghalaya
Patna Manipur Per capita income Nominal: USD 1,124.4 p.a
Jharkhand Tripura
Madhya West
Gujarat Mizoram Religion Six main religions
Pradesh Bengal
Ahmadabad Kolkata
Chhattisgarh Hindi (national language), English
Surat Languages (business language), 22 official
Nagpur Odisha
Maharashtra languages
Any participant or stakeholder in the faucet industry, who would benefit from this report
Analysts, industry experts or any person with an interest in tracking the progress of the faucet industry
The report gives insights on how the faucet industry is expected to grow till FY 2019. It provides intelligent insights on the
drivers and challenges for the industry and key segmentation by region, price, category, end users, etc.
Another important aspect of the report is the profiles of the top industry players in the faucet industry in India
This report looks at the current scenario for faucet industry in India
Plastic faucets, sanitary ware, wellness products, tiles, bathroom and kitchen appliances do not come under the purview of
this report
Table of contents
Executive summary Slide 9
1 Industry structure Slide 10
1.1 Faucets industry structure Slide 11
1.2 Evolution of faucets industry in India Slide 12
1.3 Industry definition Slide 13
1.4 Industry supply chain Slide 14
2 Industry overview Slide 16
2.1 Market size & growth Slide 17
2.2 Industry segmentation by product category Slide 18
Table of Contents
Table of contents
4 Industry trends Slide 34
7.3 Profile III – Ess Ess Bathroom Products Pvt. Ltd. Slide 49
Chart 2 Market size and growth of the faucets industry in India FY 2011-19 (INR bn) Slide 17
Chart 3 Faucets industry in India segmented by product category for FY 2014 (by value) Slide 18
Chart 4 Faucets industry in India segmented by products for FY 2014 (by value) Slide 19
Chart 5 Faucets industry in India segmented by end users in FY 2014 (by value) Slide 20
Chart 6 Faucets industry in India segmented based on consumption by type of cities in FY 2014 (by value) Slide 21
Table of Contents | List of Charts & Tables
Chart 8 Price analysis of players in the industry for ‘single-lever basin faucets’ Slide 23
Chart 11 Residential housing demand estimations across top seven cities during 2010-2014 (‘000 units) Slide 27
Chart 12 Commercial office space demand estimations across top seven cities during 2010-2014 (mn sq feet) Slide 28
Chart 18 Faucets industry segmentation by organized vs. unorganized in FY 2014 (by value) Slide 40
Chart 19 Market share of key players in the organized sector by value Slide 41
Chart 23 Grohe India’s net profit during the year (INR mn) Slide 48
Chart 25 Ess Ess’ net profit during the year (INR mn) Slide 50
Chart 27 HSIL’s net profit during the year (INR mn) Slide 52
Chart 29 Kohler India’s net profit during the year (INR mn) Slide 54
Concentration
Organised
Sector Data Availability
Structure
Industry
Macro Micro
Data Data
Completeness
Market share of top 5 firms in Output in organised Sector = 48%
organized sector = 93%
Source of Data
Quality
Trade Interviews
Copyright © 2015 ValueNotes Database Pvt. Ltd. All rights reserved. www.valuenotes .biz 2015
Executive Industry Market Drivers & Industry Competitive Annexure &
TOC Industry Trends
Summary Structure Overview Inhibitors Attractiveness Environment Appendix
The faucets industry in India is currently valued at INR 50bn in FY 2014 and has been growing at a CAGR 15% for
the last three years
Market Size And
The industry is expected to grow at a CAGR of ~16% in the next five years, mainly due to growing real estate
Growth
industry and rapid urbanization
ValueNotes estimates that the industry will be worth approximately INR 105bn by FY 2019
Drivers:
Growing real estate industry including residential, commercial and hospitality sectors, increasing disposable
Drivers and income, steady rise in urbanization and recently launched government’s initiative- “Swachh Bharat Abhiyan” are
Challenges expected to be the main drivers
Challenges:
Executive Summary
Land acquisition issues and lack of penetration in small cities & rural India, continue to serve as the major
inhibitors to the industry
Bathroom faucets is the most dominant category contributing to ~80% of the total faucet sales
Industry
Segmentation Residential sector is the biggest consumer of faucets, with xx% share in the overall faucets market
Tier I and tier II cities, together account for xx% of the total faucets sales (by value) in India
Around 48% of the faucets industry is currently organized with Jaquar & Company, Grohe India, Ess Ess, HSIL, and
Kohler India being the market leaders. The market share of organized players is expected to grow in the next five
Key Players years due to growing brand awareness among the consumers, customers shifting to high end faucets, and
upgraded production capacities by the players
The faucets industry in India has been given an Industry Attractiveness Rating of 7.2 as per the
‘ValueNotes Industry Attractiveness Rating Evaluation System’
Industry Structure
Executive Industry Market Drivers & Industry Competitive Annexure &
TOC Industry Trends
Summary Structure Overview Inhibitors Attractiveness Environment Appendix
A faucet is a plumbing fitting that is used to draw and regulate the flow of liquid, especially from a pipe. It is used by opening and closing an orifice.
Faucets can also be termed as taps.
Kitchen faucet: It is a type of faucet allied to kitchen sink which is primarily used for washing utensils and raw food
Institutional Sales
Chapter 1: Industry Supply Chain
Distributors
Manufacturers (Acting as Carry
& Forward
Agents)
Imports
Area Dealers
Exports
Local Retailers
To avoid channel conflicts, organized players follow fixed format to supply faucets to the customers
Retail Channel
xxx
xxx
xxx
xxx
Chapter 1: Industry Supply Chain
Institutional Sales
xxx
xxx
CAGR xx%
CAGR xx%
xx
CAGR xx% xx
xx
xx xx
xx
Chapter 2: Market Size & Growth
xx xx xx
xx xx xx CAGR xx%
xx xx
xx xx
xx xx
xx
Current market Usage of “Three point analysis” to arrive at realistic growth figures:
- Optimistic: Maximum growth that can be anticipated, provided all
xxx the factors* contributing to growth occur as expected
- Pessimistic: Least growth, provided growth factors are either
delayed or not implemented in the given time frame
- Most Likely: This is the optimized growth which has high probability
Estimated growth of taking place
The estimated growth of ‘faucets industry’ is based on various factors*
xxx including:
- xxx
- xxx
- xxx
- xxx
- xxx
- xxx
Bathroom faucets segment is expected to grow faster than kitchen faucets segment till FY 2019
Chart 3: Faucets industry in India segmented by product category for FY 2014
Bathroom Faucets (by value)
xxx
Chapter 2: Industry Segmentation by Product Category
xxx Kitchen
Faucets, 20%
xxx
Bathroom
Faucets, 80%
Kitchen Faucets
xxx
Bathing area faucets will continue to be the largest contributor to the faucets market for the next five years
Chart 4: Faucets industry in India segmented by products for FY 2014 (by value)
xxx
xxx
Basin Faucets,
xxx xx%
Chapter 2: Industry Segmentation by Products
WC Faucets,
xx%
Bathing Area
Faucets,
xx%
Kitchen
Faucets,
xx%
* WC = Water Closets
In FY 2015, xxx real estate construction projects are under different stages of implementation in India
Chart 31: Real estate construction projects in FY 2015 by state
xx
Chapter 8: Real Estate Industry in India
xx
xx
xx xx xx
xx xx xx
xx xx xx xx xx xx
xx xx xx xx xx xx
* Real estate includes housing sector, commercial sector and hotels & restaurants
Indian construction market is the fourth largest sector in the country in terms of FDI inflows
Currently, over xx real estate construction projects , including xx hotels and restaurants , are under different stages of implementation in India.
Different implementation stages comprise nascent, planning, under execution and partially completed
Maharashtra has the highest number of real estate projects including xx new hotels & restaurants in the state
The Real Estate (Regulation and Development) Bill, 2013, approved by the Union Cabinet is an initiative aimed at delivering an uniform
regulatory environment to protect the consumer, help in quick verdicts of disputes and ensure systematic growth of the sector
11%
17%
31%
Chapter 8: Increase in Urbanization
69%
89% 83%
The extent of urbanization in India is much lower than other developing countries; but it will be amongst the fastest growing urban populations
globally between 2013 and 2020 in absolute terms
Urbanization in the country has increased from 27.81% in 2001 census to 31.16% in 2011 census
Two of India's metropolitan cities feature in the world's largest urban population by city. Mumbai is the most populated city in India and had
the fourth largest urban population by city in 2012 at 12.5mn people, while Delhi had the eighth largest urban population by city at 11.1mn
people
By 2030, India's urban population is estimated to reach 631mn, an increase of 2.6% per year over the 2013-2030 period compared to the 1.1%
annual rise expected in the total population. The urban population will account for 41.8% of the total population by 2030
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Appendix | Research Methodology
information
Abbreviations Bibliography
USD US Dollar ValueNotes conducted secondary research to obtain information on faucets industry in
INR Indian Rupee India and referred to following sources:
bn billion MOSPI
cr crore NCAER
Appendix | Abbreviations & Bibliography
WELS Water Efficiency Labelling and Standards Online selling portals such as Snapdeal