Automobilies & Auto Ancillaries Setor Presentation

7/23/2019 Automobilies & Auto Ancillaries Setor Presentation

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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!

"!

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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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)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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Tractors Sales Tren



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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


39/63

KE% &O"&ER"S A"# SA'ES $RE"#


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.


40/63

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.


41/63

Auto Ancillaries - Sector Overvie

=s. 2+3: billion F


42/63

Auto Ancillaries - Sector Overvie

:9!

"9!

Turnover Breaku$

;rganised Anorganised

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,nustry Turnover


43/63

(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@


44/63

(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


45/63

ndustr2 &lassi4ication


46/63

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$


47/63

(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@


48/63

Value &hain

8ase =aw aterials


49/63

)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


50/63

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.


51/63

$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


54/63

Value&hain

Ma:or Proucts


55/63

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



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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;

Documents

Automobilies & Auto Ancillaries Setor Presentation