Post on 21-Nov-2014
transcript
WHITE GOODS INDUSTRY USER’S
PERSPECTIVE
WHIRLPOOL OF INDIA LTD
CONTENTS
•
•
•
• INDUSTRY TRENDS
• DESTINATION INDIA
• REQUEST ITEMS TO STEEL MANUFACTURERS
S NO.
1.
2.
3.
4.
5.
6.
WHITE GOODS INDUSTRY & MARKET
ASV LINKAGE TO STEEL PRICES
WHITE GOODS IND. GROWTH & STEEL REQ.
- Lee Scott, CEO Wal-Mart
“…India, with a middle class of 50 million to 60 million people,
is ripe for growth…”
Dan Scheinman, Cisco System Inc. Business Week, August 2005
“We came to India for the costs, stayed for the quality and are now investing for
innovation.”
A T Kearney FDI Confidence Index 2005
India is among the three most attractive FDI
destinations in the world
Jack WelchGeneral Electric
“India is a developed country as far as
intellectual capital is concerned.”
India has among the highest returns on foreign
investment
US Department of Commerce
By 2032, India will be among the three largest economies
in the world
BRIC Report by Goldman Sachs, October 2003
Destination India Destination India
2.4
2.6
2.9
13.5
4.5
1.0
1.1
1.2
1.2
1.8
2.2
INDIA
BRAZIL
CANADA
SPAIN
ITALY
FRANCE
UK
CHINA
GERMANY
JAPAN
USA
3.2
4.95.5
6.1
8.19.2
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
India
(64-74)
India
(75-84)
India
(85-94)
India
(95-04)
India
(05-06)
India
(06-07)
Max
Average
Min
Trillion $ Economy … Rapid Growth
• Huge investments in infrastructure
• Foreign Direct Investments in key sectors, Special Economic Zones
• Direct taxes, Import duties progressively lowered
India Where China Was in Mid-90’s
Indian Economy at an Inflection point of
Sustainable Growth
Indian Economy at an Inflection point of
Sustainable Growth
WHITE GOODS INDUSTRY AND MARKET : TRENDSWHITE GOODS INDUSTRY AND MARKET : TRENDS
The housewifeThe housewife The smart
discerning multitasking woman
The smart discerning multitasking woman
Changing consumer mindsets and LifestylesChanging consumer mindsets and Lifestyles
WPL Consumers: Shifts in Mindsets and LifestylesWPL Consumers: Shifts in Mindsets and Lifestyles
Design Excellence ….. Lead by Innovation Design Excellence ….. Lead by Innovation
Industry Growth
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
1 2 3 4 5
Time Period
Gro
wth
( I
n M
illi
on
s)
FC/ AC
FF
DC
White Good Industry Growth White Good Industry Growth
3.894.3
4.96
5.97
7.8
65% 57% 54% 46% 37%
12%13% 14%
18%
13%
4%4% 4%
5%
8%
11% 15% 14% 15%17%
0%10%
20%30%40%50%
60%70%80%
90%100%
2004 2005 2006 2007 2008
>351FF
301-350FF
271-300LFF226-270LFF<=225 FF
>=226 DC
185-225LDC<180L DC
WG Industry touches 7.8 M
units in 2008
Refrigeration Industry growing
by 18.5 %
WG Industry touches 7.8 M
units in 2008
Refrigeration Industry growing
by 18.5 %
• Salience Shift
happening
towards higher
capacities
• Salience Shift
happening
towards higher
capacities
2004 2005 2006 20082007
WG Steel Requirement
HDG
9%
PPGI
24%
CR- RMP
16%
EGI / Finishes
23%
CRCA
28%
�Total Steel requirements for WG Industry in year’08 ~ 96 K MT
� 40 % of total requirement is imported from other countries
� Not a single domestic player to cater requirements of EGI & special
color finishes
� Increasing demand of thinner gauge material over a period of time
�Total Steel requirements for WG Industry in year’08 ~ 96 K MT
� 40 % of total requirement is imported from other countries
� Not a single domestic player to cater requirements of EGI & special
color finishes
� Increasing demand of thinner gauge material over a period of time
White Good Industry Steel requirementsWhite Good Industry Steel requirements
ASV Movement 2005-2008ASV Movement 2005-2008
Avg. sales value/ Unit ( White Good Ind.)
8000
8400
8800
9200
9600
10000
10400
10800
Marc
h'0
5
June'0
5
Sep'0
5
Dec'0
5
Marc
h'0
6
June'0
6
Sep'0
6
Dec'0
6
Marc
h'0
7
June'0
7
Sep'0
7
Dec'0
7
Marc
h'0
8
June'0
8
Sep'0
8
Time Period
Price ( INR / Unit)
H R Price Trend
23000260002900032000350003800041000440004700050000
Mar
ch'0
5
Ju
ne'
05
Sep
'05
De
c'0
5M
arch
'06
Ju
ne'
06
Sep
'06
De
c'0
6M
arch
'07
Ju
ne'
07
Sep
'07
De
c'0
7M
arch
'08
Ju
ne'
08
Sep
'08
Time Period
Price ( INR / M
T)
� WG Ind. forced to increase their product price on A/C of unprecented steel increases
� Full impact of steel increases not getting passed to consumers
� Future increases in ASV by WG Ind. will lead to de-accelerating growth
� WG Ind. forced to increase their product price on A/C of unprecented steel increases
� Full impact of steel increases not getting passed to consumers
� Future increases in ASV by WG Ind. will lead to de-accelerating growth
ChallengesChallenges
Steel TrendsSteel Trends
White Good Steel Industry ……… Trends & ChallengesWhite Good Steel Industry ……… Trends & Challenges
�Shift towards thinner gauges to reduce weight
�Stringent tolerance requirement to control finishing process variation.
�Smooth and fine surface finish for end used appeal
�Service center for supplying prepainted / CTL requirements
�Technology support / Resource availability for developments
�Shift towards thinner gauges to reduce weight
�Stringent tolerance requirement to control finishing process variation.
�Smooth and fine surface finish for end used appeal
�Service center for supplying prepainted / CTL requirements
�Technology support / Resource availability for developments
� Next level of technology to meet thinner gauges requirements
� Complexity due to more design variants / SKU’s
� Color finishes & Metal ( CFM) cost and availability
� Next level of technology to meet thinner gauges requirements
� Complexity due to more design variants / SKU’s
� Color finishes & Metal ( CFM) cost and availability
White Good Steel Industry ……… Request Way Forward White Good Steel Industry ……… Request Way Forward
�Price revision mechanism based on raw material cost , conversion cost
& profit margin
�Technology next level to meet thinner gauges , tolerance & color finishes
requirement
�Price Index Publication ( like CRU) for domestic steel prices and linkage
with global prices
� Service center for supplying CTL requirements
�Price revision mechanism based on raw material cost , conversion cost
& profit margin
�Technology next level to meet thinner gauges , tolerance & color finishes
requirement
�Price Index Publication ( like CRU) for domestic steel prices and linkage
with global prices
� Service center for supplying CTL requirements
Every Home … Every where .. With Pride ,
Passion and Performance …… !!!!!