Tractors. Annual Review September Contents

Transcription

1 Tractors Summary CRISIL Research projects tractor industry sales (including exports) to grow at a CAGR of 7-9 per cent in volume terms and reach a size of 6.4 lakh units by Domestic demand is projected to grow by 6-8 per cent by whereas exports are estimated to grow by per cent. In value terms, the industry is estimated to increase to about Rs billion by from Rs 200 billion in Operating margins for tractor manufacturers are estimated to remain under pressure in and remain flat in Annual Review September 2010 Contents Part A: Domestic demand projected to grow by 6-8 per cent, exports by per cent by Executive summary A-1 Demand review & outlook All India A-3 Competition and player dynamics A-15 Profitability: Review & outlook A-21 Part B: State of the industry Industry overview B-1 Cost review B-9 Regulations B-13 Player profiles B-17 Part C: Industry statistics Industry data: Sales, Market shares, Product mix, Capacity & Production C-1 Financial profile C-13 This document has been prepared by Prasanna Kanta, Hetal Gandhi and Manoj Mohta (Head of Research). For any queries please get in touch with our client servicing desk. (clientservicing@crisil.com. Ph )

2 Opinion Sections Executive summary A Demand review and outlook All India A-3 - Domestic Review and outlook A-3 - Exports Review and outlook A Competition and player dynamics A-15 - Mahindra & Mahindra Ltd A-17 - Tractors and farm equipment Ltd (TAFE) A-18 - Other players A Profitability: Review and outlook A-21 Boxes 1.0 Demand review and outlook All India 01 Framework for demand analysis A Demand review and outlook All India 01 Volume sales and Agri GDP A-5 02 Domestic sales growth vs agri credit growth A-6 03 Minimum support prices for major crops (MSP) A-7 04 Annual deviation from normal rainfall A-7 05 Hp-wise breakup of total sales A-8 06 Hp-wise breakup of domestic sales A-8 07 Comparing tractor penetration across countries A-8 08 Increasing tractor penetration in India A-8 09 Annual growth in farm income A-9 10 Regression of tractor population against Agricultural GDP A Exports volumes A Region-wise exports A Hp-wise breakup of exports A Tractor market size A-12 Continued A-i

3 continued 2.0 Competition and player dynamics 01 Tractor companies - Market share in A Herfindahl index A Mahindra & Mahindra tractors segment mix: A Mahindra & Mahindra tractors segment mix: A Escorts tractors segment mix: A ITL tractors segment mix: A Profitability: Review and outlook 01 Raw material breakup A Trend in prices of key raw materials A Operating margins A Demand review and outlook All India 01 Growth in tractor volumes A-3 02 Growth by region A Competition and player dynamics 01 Benchmark for Herfindahl index A Key success factors A Profitability: Review and outlook 01 Operating margins - PBIT A Movement in basic raw material cost A Expected movement in basic raw material cost A Net margins A Return on capital employed A-25 A-ii

4 State of the industry Sections 1.0 Industry overview B-1 - Overview B-1 - History of tractors in India B-1 - Structural analysis of the tractor industry B-2 - Penetration rate of tractors in India B-3 - Segmentation of tractors B-3 - Usage B-4 - Agricultural usage B-4 - Commercial usage B-5 - Urban usage B Cost review B-9 - Raw material cost B-9 - Manpower cost B-10 - Selling and marketing cost B-10 - Power and fuel cost B-11 - Other expenses B-11 - Outlook B Regulations B-13 - Introduction B-13 - Fiscal regulations B-14 - Environmental regulations B Player profiles B-17 - Domestic players B-17 - International players B Industry overview 01 Tractors industry growth over past four decades B-2 02 Factors affecting the choice of tractors B Regulations 01 Farm credit disbursements and year-on-year growth B-13 Continued B-i

5 continued 4.0 Player profiles 01 M&M - total sales and share in the domestic industry B M&M - region-wise share in domestic industry sales B M&M - segment-wise sales mix B PTL - total sales and share in the domestic industry B PTL - region-wise share in domestic industry sales B PTL - segment-wise sales mix ( ) B TAFE - total sales and share in the domestic industry B TAFE - region-wise share in domestic industry sales B TAFE - segment-wise sales mix B Escorts - total sales and share in domestic industry sales B Escorts - region-wise share in domestic industry sales B Escorts - segment-wise sales mix B ITL - total sales and share in domestic industry sales B ITL - region-wise share in domestic industry sales B ITL - segment-wise sales mix B New Holland India - total sales and share in domestic industry B New Holland India - region-wise share in domestic industry B New Holland India - segment-wise sales mix ( ) B New Holland India - export share B John Deere - total sales and share in domestic industry B John Deere - region-wise share in total industry sales B John Deere - segment-wise sales mix ( ) B John Deere - export share B Deere & Co - revenue mix for 2009 B CNH Global NV - revenue mix for 2009 B CNH - region-wise tractors sales in revenue terms B AGCO - revenue mix for 2009 B AGCO - region-wise sales in revenue B SAME-DEUTZ-FAHR - product/trademark-wise sales mix for 2009 B Industry overview 01 Segmental growth and proportion in domestic sales B-4 02 Tractors - Horsepower output for various farm inputs B-5 continued B-ii

6 continued 2.0 Cost review 01 Cost structure of major tractor players B-9 02 Players' operating profit margins B-9 03 Raw material cost as a percentage of net sales B Trend in prices of major raw materials B Labour cost as a percentage of net sales B Selling and marketing cost as a percentage of net sales B Power and fuel as a percentage to net sales B Other overheads as percentage of net sales B Outlook B Regulations 01 Tractors - excise tariffs B Tractors - customs tariffs B Emission standards for tractors B Player profiles 01 M&M - business profile B PTL - business profile B TAFE - business profile B Escorts - business profile B ITL - business profile B New Holland India - business profile B John Deere - business profile B Deere & Co Ltd - financial summary B CNH Global NV - financial summary B AGCO - financial summary B SAME DEUTZ-FAHR - financial summary B-37 B-iii

7 Industry statistics Sections 1.0 Industry data: Sales, Market shares, Product mix, Capacity & Production C Financial profile C Industry data: Sales, Market shares, Product mix, Capacity & Production 01 Tractors - Region-wise company-wise sales C-1 02 Tractors - Region-wise company-wise market shares C-3 03 Tractor industry sales C-5 04 Tractors - Segment-wise company-wise domestic sales C-5 05 Tractors - Segment-wise company-wise domestic market shares C-7 06 Tractors - Company-wise segment-wise total sales C-8 07 Tractors - Company-wise segment-wise shares C Tractors - Player-wise capacity C Tractors - Player-wise production C Tractors - Player-wise capacity utilisation C Financial profile 01 Mahindra & Mahindra Ltd - Financial performance C Tractors & Farm Equipment Ltd - Financial performance C Escorts Ltd - Financial performance C International Tractors Ltd - Financial performance C HMT Ltd - Financial performance C VST Tillers Tractors Ltd - Financial performance C-16 C-i