Market Research Report : Water and wastewater management in india 2013

Water and Wastewater Management (WWWM) IndiaWater and Wastewater Management (WWWM) – India
July 2013

Executive Summary
Market
 Indian water and wastewater management market is currently valued at INR x bn
 It is expected to grow with a CAGR of y% till 20‐‐
 Many small players are entering the market
 WWW treatment demand arises primarily from three major sectors: Agricultural, industrial and domestic
 Industrial water treatment is expected to drive this market in the future
Drivers &
Challenges
Industrial water treatment is expected to drive this market in the future
Drivers
– Rising Population and Urbanization
– Rapid Industrialization
– Chronic Ground Water Contamination
Challenges
– Poor Infrastructure
– Water Pricing Mechanism
– Unaccounted‐for WaterChallenges Chronic Ground Water Contamination
– Fluctuations in Ground Water Level
– Operational Advantages in India
Unaccounted for Water
Government
Bodies and
 Requirement for Efficient Governance of Water
 Flow of Authority of Water Institutions in India
 Institutional Framework in Urban Water Supply
 Zth Five Year Plan Investments
Recent
D l t
 DIWALI Concept
 Entry of Foreign Players
Bodies and
Initiatives
y
 Incentive Structure
 Policy Measures by Government of India
 Increasing Government Thrust
 Jawaharlal Nehru National Urban Renewal Mission
Developments
Competitive
Landscape
 Popularity of PPP Model
Major Players
Player A Player B Player C
Player D Player E Player F
2WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT
Player D Player E Player F

•Macroeconomic Indicators
•India’s Water Situation
d i•Introduction
•Sectoral Demand for Water
•Market Overview•Market Overview
•Wastewater Treatment Techniques
•Drivers & Challenges•Drivers & Challenges
•Government Bodies and Initiatives
•Recent Developmentsp
•Competitive Landscape
•Market Entry
•Appendix

SAMPLEEconomic Indicators (1/3)
Gross Fiscal Deficit: Monthly
600
500
INR bn
x6
x5
x3500
400
300
200
100
x4
x3
x2
x1
Exchange Rate: Monthly
100
0
Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐Month ‐‐
g y
55.0
x2
USD/INR
x1
54.0
54.5 x3 x6
x2
x5
x4
4
53.5
Month 20‐‐Month 20‐‐ Month 20‐‐ Month 20‐‐Month 20‐‐Month 20‐‐
WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT

SAMPLE
Different water quality standards are laid out by the
Regulatory Authorities in India
SAMPLEIndian Water Quality Standards
Class of
water
Designated‐Best‐Use Criteria/Specifications
water
X1 Segments • Point 1
• Point 2
• Point 3
• Point 4
• Point 2
• Point 3
• Point 4
X3 Segments • Point 1X3 Segments Point 1
• Point 2
• Point 3
• Point 4
• Point 2• Point 2
• Point 3
• Point 2
• Point 3
• Point 4
• Point 4
Below X6 Segments • Point 1

WWWM goods & services facilitates the process of removal,
treatment and reuse/disposal of wastewater
Water and Wastewater Management – Introduction (2/2)
Wastewater Goods and Services Wastewater Treatment Procedures
•Point 1
•Point 2
X Y Z
A •Point 3
•Point 4
•Point 5 • X1
• X2
• Y1
• Y2
• Z1
• Z2
•Point 1
• X3
• X4
• X5
• X6
• Y3
• Y4
• Z3
• Z4
B
•Point 2
•Point 3
•Point 4
•Point 5
•Point 6
X6
• X7
Point 6
•Point 7 Point 1

Agricultural sector is the largest consumer of water in the
form of irrigation
Current Water Usage Pattern in India : Market Forces at Work
Key Market Boosters Key Issues
Segment A
• Point 1
• Point 2
• Point 3
• Point 1
• Point 2
Segment B • Point 1 • Point 1
Segment C
•Point 1
•Point 2
• Point 1
Sustainable Water Consumption – Steps Required
Point 1
Point 2
Point 3
Water Consumption Levels in Various Countries
x2
y2 z2
y1
z1
Segment C
Segment B
Segment A
Point 3
Point 4
BA
x1
Segment C

Rapid urbanization and industrialization is expected to spur the
Indian WWWM market
Market Size – WWWM (Value‐Wise)
INR bn
x6Z%
x5
x4
x3
x2
x1
x6Z%
0
20‐‐e20‐‐e20‐‐e20‐‐e20‐‐ 20‐‐e
Wastewater Treatment DemandWastewater Treatment Demand
Z%
Y%
S A
X%
Segment B
Segment A
Segment C
X%
20‐‐

Watershed development projects are an efficient tool to
manage natural resources such as water Waste Water
Treatment
Water Treatment
• Point 1
• Point 2
Watershed Management Fund Allocation
x4
x3
x2
• Point 3
x1
P j t M t Ph
DBCA
X Phase Y Phase Z Phase
Project Management PhasesFinancing pattern of X
A
A C E
B D F
A
B
Point 1C

Wastewater treatment industry in India mainly adopts the
following techniques
SAMPLE
Types of Wastewater Treatment Technologies (2/2)
• Point 1
A
• Point 2
B
• Point 1
• Point 2
C
• Point 1
• Point 2
• Point 3
D
• Point 1
• Point 2

Drivers & Challenges – Summary
Drivers Challenges
Rising Population and Urbanization
Rapid Industrialization
Poor Infrastructure
Water Pricing Mechanism
Chronic Ground Water Contamination
Fluctuations in Ground Water Level
Unaccounted‐for Water
Operational Advantages in India

Low cost makes India a very attractive destination to set up
waste water management plants
ImpactOperational Advantages in India
• Finding 1
• Sub‐ Finding 1g
A
•Point 1
•Point 2
Sub‐Point 1
Major
Operational
Advantages
in India
B
•Point 1
•Point 2
in India
C
•Point 1
•Point 2
•Point 1
D
•Point 1
Sub‐point 1

Certain fundamental requirements need to be fulfilled for
the institutional effectiveness of the water sector
SAMPLE
Requirements for Efficient Governance of Water
Water Governance
SAMPLE
Segment A Segment B
Segment X Segment Y
•X1
•X2
•X3
• Y1
• Y2
• Y3
•Y1
•Y2
•X3
•X4
• Y3
• Y4
• Y5
• Y6
• Y7
•Y3
•Y4
Note: NRW‐ Non revenue water

Recent Developments – Summary
DIWALI Concept
Recent
lDevelopments
Popularity of PPP Model Entry of Foreign Players Popularity of PPP Model y g y

The X concept is expected to address India’s water‐related
challenges
X – The ‘X’ Concept (2/2)
Technology Concepts
A B C DA B C D
E F HG
I
Point 1

Competitive Benchmarking (1/5)
Public Trading Comparables (FY 20‐‐)
Company 1 Company 2 Company 3 Company 4
Market Capitalization (INR
mn)
‐ ‐ ‐ ‐
Share Price (INR) ‐ ‐ ‐ ‐
EV/EBITDA (x) ‐ ‐ ‐ ‐
/EV/Revenue (x) ‐ ‐ ‐ ‐
PE Ratio ‐ ‐ ‐ ‐

Public: Domestic Company – Company A (1/4)
Company Information Offices and Centres – India
Corporate Address
Address
Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Tel No. 91
Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Website website
Year of Incorporation 19‐‐
Products and Services
Ticker Symbol ‐‐‐‐‐‐
Stock Exchange ‐‐‐
Key People
Products and Services
Category Products/Services
Segment Product 1, product 2, product
N D i ti
Head Office
3,………………….
Others Product 1, product 2, product 3………
Name Designation
Person 1 Designation
17
, p , p
WATER AND WASTEWATER MANAGEMENT IN INDIA 2013.PPT

i i l S h K i
Financial Snapshot Key Ratios
Particulars
y‐o‐y change
(2012‐11)
2012 2011 2010 2009
Profitability Ratios
Operating Margin 4.18 6.63% 2.45% 7.56% 6.66%
Net Profit/LossTotal Income
60000
80000
3 000
4,000
INR mn INR mn
y4y1 y3y2
Net Margin ‐2.44 ‐1.27% 1.18% 0.64% 1.06%
Profit Before Tax Margin ‐3.14 ‐0.31% 2.82% 2.30% 2.89%
Return on Equity ‐8.70 ‐4.22% 4.48% 1.95% 2.94%
Return on Capital Employed 3.74 7.00% 3.26% 8.70% 7.11%
Return on Working Capital ‐13.05 ‐41.88% ‐28.83% 72.52% 84.18%
Return on Assets 1.69 3.30% 1.60% 4.41% 3.16%
0
20000
40000
60000
0
1,000
2,000
3,000
20‐‐
x4
x2
20‐‐
x1
20‐‐
x3
20‐‐
Return on Fixed Assets 11.80 20.65% 8.85% 11.80% 9.74%
Cost Ratios
Operating costs (% of Sales) ‐7.41 70.17% 77.58% 83.00% 84.27%
Administration costs (% of
Sales)
2.55 19.38% 16.84% 6.32% 6.07%
Interest costs (% of Sales) 2.58 7.54% 4.96% 4.85% 4.76%
Financial Summary
• The company earned a net profit of INR x mn in FY 20‐‐, as
compared to net profit of INR y mn in FY 20‐‐
• The company reported total income of INR y mn in FY 20‐‐,
registering an increase of % over FY 20 Interest costs (% of Sales) % % % %
Liquidity Ratios
Current Ratio ‐4.44% 0.85 0.89 1.12 1.07
Cash Ratio 7.01% 0.12 0.11 0.11 0.11
Leverage Ratios
Debt to Equity Ratio 26.01% 3.65 2.90 2.24 2.26
b i l i
registering an increase of z% over FY 20‐‐
• The company earned an operating margin of y1 % in FY 20‐‐, an
increase of x2 percentage points over FY 20‐‐
• The company reported debt to equity ratio of z1 in FY 20‐‐
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn) ‐
Total Enterprise Value (INR mn) ‐
EPS (INR)
Debt to Capital Ratio 5.59% 0.79 0.74 0.69 0.69
Interest Coverage Ratio 71.49% 0.90 0.52 1.58 1.42
Efficiency Ratios
Fixed Asset Turnover ‐10.53% 3.04 3.40 1.54 1.44
Asset Turnover ‐21.14% 0.49 0.62 0.58 0.47
Current Asset Turnover ‐20.63% 1.08 1.36 1.04 0.79
EPS (INR) ‐
PE Ratio (Absolute) ‐
Working Capital Turnover ‐44.31% ‐6.17 ‐11.09 9.48 12.42
Capital Employed Turnover ‐24.03% 0.70 0.92 0.93 0.84
Improved Decline

Key Business Segments Key Geographic Segments
100%
Segment A
100%
BA
Company A has earned100%
50%
0%
X
0%
50%
100%
x4
y2 y3
x3
y4
x2
y1
x1
Company A has earned
revenues from this segment
only for the last X fiscals
Business Highlights
0%
20‐‐
0%
20‐‐ 20‐‐ 20‐‐20‐‐
Description News
Overview
• Operates as a civil engineering construction company in Country A
• Involved in designing, engineering, and building (EPC) transportation projects, including bridges, flyovers,
roadways, and railways; and power projects, such as nuclear, hydroelectric, and thermal power projects,
as well as executing high voltage transmission linesOverview as well as executing high voltage transmission lines
• Engages in oil exploration and realty development businesses
• Has initiated talks with investors to sell up to x% stake in its listed subsidiary, Company B
• Intends to amalgamate its x% power generating subsidiary Company C with itself
Certifications
• It is the only Country A Construction Company to have been accredited with X for all fields of Civil
Certifications
Engineering Works including design

Various factors lead to potential water crisis in India which
can be dealt with by providing solutions and opportunities
Strategic Recommendations
A B C D
• Point 1 • Point 1
• Point 1
• Point 2
IONS
• Point 2
• Point 3
• Point 2
• Point 3
• Point 2
• Point 3
• Point 4
• Point 1
SOLUTI
• Point 1
• Point 1 • Point 1
NITIES
• Point 2
• Point 3
• Point 4
• Point 1
• Point 2
• Point 3
• Point 1
• Point 2
• Point 3
• Point 1
OPPORTUN

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Water and Waste Water Management – India 2013 report is part of Netscribes’ Services
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Market Research Report : Water and wastewater management in india 2013

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