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One of the top ten Investment Bankers and winner of the M&A Atlas Awards – Deal of the Year 2011, ACQ Global Award 2009 for ‘Corporate and M&A Advisory firm of the year-India’ o Co po ate a d & dv so y o t e yea da Multi–dimensional focus, covering all major sectors and industries Current focus with mid market and growing Corporates, while having strong relationships with top business houses in the country E Experienced & S bl M i d Stable Management, l di leading a team of >35 f 35 professionals, 70% of the team averaging 6+ years with Singhi Strong relationship and confidence from existing clients with 60% repeat business and 80% strike rate Live relationship with >250 Corporates, resulting in >800 ve e at o s p w t 50 Co po ates, esu t g 800 completed assignments.
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Exclusive Indian Member of “Mergers-Alliance”, a leading international network of independent Investment Banking Firms and Corporate Finance advisory firms offering seamless services on mid-market transactions With the successful closure of more than 90 transactions valued at over Euro 5 billion to its credit Mergers-Alliance is ranked No 19 credit, No. globally by Thomson Financial Table Mergers-Alliance helps us offer clients a global platform, seamless service and enhanced access to global opportunities through a network of 50+ offices across 25 countries with 20 like-minded firms, each having strong presence in their home market, wealth of local knowledge and experience in the international markets.
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Local Knowledge…Global Reach
25 Countries – 50 Offices
Our Recent Cross Border Transactions……… in a Borderless World
Multiple Countries……..Multiple Sectors
Consumer Durables
Business Services Business Services
Security Services y
Power sector
Pharmaceutical
Building Products g
Sale of Maharaja Whiteline by USD 5 bln Groupe SEB, having 10% global market share in Small Domestic appliances & 15% global market in Cookware
Acquisition of controlling stake by USD 1bn OCS Group - UK, world’s leading Integrated Facility Services Group
Acquisition of controlling A i iti f t lli stake and management control in Qatar's largest Fire Security Solutions Provider
Strategic Partnership of PETE Transformers with T f ith Hammond Power, Canada, the North American leader in Dry type transformers
Sale of Dermatology and Baby Care Business/ Brands of Shalaks Pharmaceuticals, Delhi to Singapore based Invida Holdings Pte. Ltd.
Sale of Bombay Burmah’s (a Nulsi Wadia group company) decorative laminate business “Sunmica” to the USD 1.1 bln Japanese major Aica Kogyo Co
INR 5,000 mn
Value undisclosed
Value undisclosed
Value undisclosed
INR 1,250 mn
INR 1,003 mn
Specialty Chemicals
Metals
Media
Healthcare
Industrial
Natural Resources
Sale of PI Polymer, the engineering plastics business of INR 6 bln, PI Industries Ltd., to France based Rhodia SA, a Euro 4 bln Global Specialty Chemicals Group
Sale f St i l S l of Stainless St l Steel seamless Pipes & Tubes manufactruing facility Tubinox (part of USD 915 mln Viraj group), to South Korea based KE&P Co.
Sale f Mid D S l of Mid-Day Multimedia’s publication business (India’s no. 1 Afternoon Tabloid Newspaper) to Jagran Prakashan
Acquisition of Mauritius’s largest private hospital, ‘Clinique Darne’ in JV with CIEL, a leading Industrial group of Mauritius
Strategic Partnership with USD 10 bln, Prysmian S.p.A., Italy, world’s largest cable company
Acquisition of Linc Energy’s Galilee basin Coal Tenement in Australia – the largest coal asset acquisition by an Indian company
INR 700 mn
Value Un‐disclosed
INR 2,000 mn
Value Un‐disclosed
INR 2,000 mn
USD 2,780 mn
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Singhi Advisors
We Understand Business…
Well researched and focused
Track record of closing multiple transactions across sectors, across globe
Deep Business p understanding with a Deal Mindset
Proactively working & pre-convincing p g targets, before disclosing the clients identity
Low profile but extremely aggressive… We believe in making Lasting Impact
Highly motivated and result oriented organization
Active multiple p retained buy-side & sell-side transactions
80% plus hit rate p with 60% plus repeat business
Investment Bank of your Choice…
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Successful track record of closing >100 transactions in ~ 5 yrs
JNP
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Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
Private & Confidential
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Executive Summary
Globally, a majority of the demand for pumps and valves is coming from their installation in varied end – user industries of oil and gas, power generation, and heavy industries (like cement and metal). Globally the Pumps & Valves market is around USD 110‐120 Bn of which around USD 52 Bn is valves & 110 120 Bn, Pumps around 60 Bn. Flowserve is a global leader in the pumps & valves market, with its 2012 estimated revenue representing about 4% of the overall market. Flowserve and its largest competitors combine for a modest 20% of the overall market which would make Flowserve the largest pumps and valves provider market, by nearly two times its next largest competitors: Emerson, Tyco Flow Control (to be acquired by Pentair), and Weir Group. The Indian market for this equipment also thrives on the similar global pattern, with demand primarily originating f i i i from the country’s wide‐spread oil and gas exploration and production activities, refineries, h ’ id d il d l i d d i i ii fi i and other core sectors. As per Frost & Sullivian’s research, the cumulative Indian market size for pumps & valves is in a range of $ 2.2 ‐ $ 2.5 Bn, out of which around 60% is valves and 40% pumps. The Indian market of pumps & valves has traditionally dominated by international companies. While few home grown companies like Kirloskar Brothers Limited (KBL) (Pumps), Virgo valves (valves) do figure in the top list of Indian manufacturers, factors associated with limited technology know‐how and financial constraints have impeded the growth of many others. p g y Globally Pumps & valve market has seen host of mergers & acquisitions in past, the relatively flat growth of the market is one of the main underlying factors driving such acquisitions. This trend is set to continue as manufacturers face growing competition from global conglomerates and pressure to reduce costs Indian market is also poised for consolidation which has large number on costs. consolidation, unorganized players in pumps and valve market.
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Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Pump Industry
(Overview)
Pumps are the vital elements in an enormous range of fluid handling applications & range from small household pumps to immense units utilized in the water, chemical and energy industries. Pump p performance requirements and duties vary considerably in terms of material of construction, wide q y y , range of temperature, pressure, viscosity, density etc. Pumps are employed in almost all the industries. Pumping systems account for nearly 20% of the world’s electrical energy demand and range from 25‐ 50% of the energy usage in certain industrial plant operations Pumps have two main purposes:
Transfer of liquid from one place to another place (e.g. water from an underground aquifer into a water storage tank) Circulate liquid around a system (e.g. cooling water or lubricants through machines and equipment) Pumps Prime movers: electric motors, diesel engines or air system Piping, used to carry the fluid Valves, used to control the flow in the system Other fittings, controls and instrumentation End‐use equipment, which have different requirements (e.g. pressure, flow) and therefore determine the pumping system components and configuration.
The Th main components of a pumping system are: i t f i t
Application of Pumps
Various application of pumps are Transportation, Circulation, Mixing, Injecting, Metering, Agitating, Reactor etc Various application of pumps are Transportation, Circulation, Mixing, Injecting, Metering, Agitating, Reactor etc
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Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Global Pump Industry (Overview)
Global Pump market (including Industrial, residential and agriculture pumps) is estimated to exceed $60 Bn worldwide. Out of this Industrial pump market is estimated at $35 billion as on 2011‐12. Top 10 suppliers accounts for approx 50% of world sales and top 5 suppliers accounts for 30% 30%. Domestic and Agricultural sectors contributed approx 42% of the world pump market and rest by Industries. The share of various industry sectors in the market for pumps can be seen below. As can be seen, the biggest market of pumps came f b k f from Municipal waste water plants at 23% f ll l l followed b Municipal d k d by l drinking water systems at 16%. Industrial Sales Break Up Flood control
1%
Global Sales
Domestic +Agricult ural 42% Industrial 58%
Electronics 1% Mining 1% Pharma 2% Food 2% Paper 2%
Other Industries 19%
Water 16%
Waste Water 23%
Metals 2% Oil & Gas 4% Stone 4% Refinery 7% Power 8%
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Chemical 8%
Source : Mcilvaine Company
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Indian Pump Industry (Overview)
The Indian Pump industry has more than 800 manufacturers with worker strength of over 40,000 producing about 5 million pumps annually. Indian market for pump’s is estimated to be Rs.5000 Crores g growing at an annual rate of 8% significantly higher than the global rate of 4% g g y g g The Pumps industry in India is more than seven decades old. Though it has a turnover of Rs 5000 crore the size is not even 10 per cent of the size of USA market. The industry meets 95 per cent of the domestic demand demand. Exports have been a regular feature of Indian pump industry for years. Indian pumps have reached more than sixty countries around the world including developed countries. India exported Pump sets worth 400 Crs in FY 11. Indian pump industry is characterized by the coexistence of large number of Small & Medium units, some large manufacturers and plenty of foreign manufacturers Coimbatore is the leading hub for pump manufacturing followed by Ahmedabad and Rajkot. India is the outsourcing hub of the manufacturers abroad who have found India to be not only a cheap source of skilled labour but also the market to be an expansive one. Many multinational companies are establishing a base in India either through a joint venture or made direct investment in the market.
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Indian Pump Industry (Indian Market by Industry Usage)
Contribution of Agricultural and domestic industry to total pump sales is higher in India compared to global standards standards. The share of various industry sectors in the market for pumps can be seen below. Oil & Gas and Chemicals contributes the most in India compared to Municipal Waste water and Municipal drinking water systems contributing the most globally. Industrial Sales Break up – FY 2012 Industrial Sales Break up FY 2012
Total Pump Sales Breakup
Marine 2% Mining 3% Metals 4% Construction 4% Pulp & Paper 6% Buildings 7%
Others 9% Oil & Gas Oil & G 20%
Industrial 54%
Agricultur al & al & Domestic 46%
Chemicals 16%
Food 7%
Power 9%
Water 13%
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Source : Mcilvaine Company
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Indian Pump Industry (Drivers & Challenges)
Drivers Challenges
Expanding Expanding infrastructure along with urbanization Focus on Energy Efficiency Low availability of Low availability of uncontaminated water pushing desalination market
Threat from unorganized players
Increase in raw material prices
Low awareness amongst farmers
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Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Indian Pump Industry (Type of Players)
The Indian market of Pumps has traditionally been dominated by international companies but some large Indian companies have got major share of this market off late like Kirloskar Pumps, CRI Pumps Jyoti Pumps etc. Most of the global MNC’s have their presence mainly through subsidiaries and at the y p g p y g low end of the pyramid there are large number of Medium/Small Indian companies.
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MNC s (Catering mainly MNC’s (Catering mainly to high technology Industrial Segment)
KSB Grundfos Pumps Wilo AG Flowserve Corporation Weir Kirloskar Brothers CRI Pumps Texmo Industries y p Jyoti Pumps WPIL Ltd Shakti Pumps Falcon Pumps p Roto Pumps Kishor Pumps Sharp Pumps Suguna Pumps Aqua Sub Pumps
Source : Singhi Research
Large Indian Players
Indian Medium/Small Size
Indian Pump Market (Players Profile)
MNC companies in India Name of the Company Grundfos Pumps Flowserve Corporation KSB Weir Wilo AG Global Revenue (USD) 3.5 billion 4 .5 billion 3 billion 3.6 billion 1.4 billion Large Indian Players L I di Pl Name of the Company Kirloskar Kirloskar Brothers CRI Texmo Industries Jyoti Pumps WPIL Ltd Group Revenue (Crs)** 2615 900 500+ 400 300 Pump Revenue (Crs) 920 850 500+ 350 300 Indian Revenue (In Rs Crs)* 300 480 700 100 450 Pump Revenue (In Rs Crs) 300 260 580 60 220 Mid Size Players Mid Si Pl Name of the Company Shakti Pumps V‐Guard Industries (Pump Div) Falcon Pumps Best Engineering Pumps Pvt Ltd Sam Turbo Pumps Roto Pumps Kishor Pumps
Note: * Revenue as per FY 2011 ** : Revenue as per FY 12
Revenue (Crs) 150 150 120 100 70 60 40
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Source : Thomson Reuters
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Valves (Overview)
Valves are used to control or divert the flow of liquids, gases, slurries, dry material or steam in all kinds of industries They may also control or isolate the rate of flow volume pressure direction or a industries. volume, pressure, combination of these parameters.
There are only two known ways of controlling the flow of liquids and gases, and all valves are based on one of the two principles. Consider an overhead tank with water flowing out from an outlet pipe near the bottom. One way to stop/control the flow is to put a block against the flowing medium and the second way is to squeeze the outlet pipe shut if the pipe is flexible.
Modern Industrial valves have come a long way from the simple cock used to control the flow of water in older times and are now available in sophisticated configurations and can even be operated by remote signals from satellites.
Modern process plants use valves to control various parameters including flow, volume, pressure and temperature and can also be used for mixing different flow media.
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Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Global Valve Industry (Market Size)
The world market for industrial valves is expected to grow steadily to $52 billion in 2012 up from $47 billion in 2008 billion in 2008
Industrial valves world market by valve type ($ Million)
Other Industrial Plug Gates & Globe Butterfly Ball Auto Reg & Control g 2006 2007 2008 2009 2010 2011 2012
Source : Mcilvaine Company
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Global Valve Industry (World Market by Industry Usage)
Valve companies are finding many new opportunities for their products. Applications with double‐digit growth include ethanol LNG desalination and biotechnology Alternative fuel sources including oil ethanol, LNG, desalination, biotechnology. sands, oil shale and coal liquefaction also represent promising markets. The share of various industry sectors in the market for valves can be seen below. As can be seen the biggest market of valves is the Oil and Gas Sector at 16% followed by refining sector at 13% and power 2012 sector at 13% of th t t l market. t t f the total k t
Wastewater 8% Water 6% Electronics 1% Chemical 12% Food 2% Iron & Iron & Steel 4% Metals 2% Mining 2% Pulp & Paper P 6% Power 14% Pharmaceuti cal 3% Other Industries 10% Oil & Gas 16% Other Electronics 1%
Source : Mcilvaine Company
Refining 13%
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Global Valve Industry (World market by Industry usage)
60000 50000 40000 30000 20000 10000 0 2005 2006 2007 2008 2009 2010 2011 2012
Industrial valves world market by Industry usage ($ Million)
Water Wastewater Refining Pulp & Paper Power Pharmaceutical Other Industries Other Electronics Oil & Gas Mining g Metals Iron & Steel Food Electronics Chemical
Oil & gas sector at 16% always been the biggest market for Industrial Valves followed by Refinery Oil & gas sector at 16% always been the biggest market for Industrial Valves followed by Refinery &Power sector at 13%
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Source : Mcilvaine Company
Competitive Landscape (Global) Consolidation is the way to go !!
Top Global Players
The global industrial valves market has seen a host of mergers and acquisitions over the last few years. This trend is set to continue as manufacturers face growing competition from global conglomerates and pressure to reduce costs. The l industry in the Western world h changed a l t Th valve i d t i th W t ld has h d lot with conglomerates taking over independent family business, users changing the way they buy valves and famous brand names releasing their workers from production facilities in America, E A i Europe and J d Japan and h i th i valves b ilt i d having their l built in China, India, Korea etc to reduce manufacturing cost. Currently the valve industry remains fragmented despite the many acquisitions and position of many of the major acquirers. More than five thousand manufacturers around the world make valves. Large companies do not dominate the market.
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Name of the Company y Tyco International Emerson Flowserve Kitz Crane Company Cameron IMI plc Circor AVK Group KSB Dresser, Inc. Dresser Inc Rotork Velan Metso Curtiss‐Wright Burkert Valvitalia Alfa Laval American Flow Control Samson Controls
Market Share % (in 2007) M k t Sh % (i 2007)
40.00% 20.00% 0.00% Top 5 Top 10 Top 15
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15.50%
22.20%
26.50%
16 17 18 19 20
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Indian Valve Industry (Overview & Market Size)
Indian valve industry has come a long way from making simple valves to producing a wide range of sophisticated precision valves. But it is as fragmented as the Global Valve Industry Most of the industry is dominated by small and Industry. medium scale players with heavy dependence on sub contractors and a large part of the market consists of the unorganized sector. The competition within the industry can be broadly classified by usage –
Domestic usage ‐ I th d D ti In the domestic valves segment, th products are easily manufactured b i d t i i th ti l t the d t il f t d by industries in the unorganized sector and valves from China and other countries are abundantly available in the market. Industrial usage ‐ The industrial valves segment buyer is an informed buyer who specifies product and quality needs which are met by a few major valve manufacturers. These manufacturers have successfully produced quality g goods and built a brand image over the years. g y
The Indian valve industry at over $1 billion in 2009 is expected to grow at a higher pace than the global valve industry. The table below shows the estimated market for valves in India. The average growth in Indian valve industry is expected at 12% compounded per annum from 2009 to 2012.
Indian Valves Market ($ Million)
1,500 1,000 500 2005 2006 2007 2008 2009 2010 2011 2012
Source : Mcilvaine Company
CAGR = 12%
847
878 878
915 915
970 970
1,011 ,
1,092
1,225
1,413
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Indian Valve Industry (Market by Industry Usage)
Indian valve industry is widely spread among several user segments starting with Power, Water, Oil & Gas and Refining Chemical 2012
6% Electronics Food 0% 2% Iron & Steel 5% Metals 2% Mining 4% Oil & Gas 8% Other Electronics 0% Other Industries 10%
Wastewater 0% Refining R fi i 7%
Water 18%
Pulp & Paper 0% Power 35%
Pharmaceutical 3%
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Source : Mcilvaine Company
Indian Valve Industry (Market by Industry usage)
1600 1400 1200 1000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012
Industrial valves world market by Industry usage ($ Million)
Water Wastewater Refining Pulp & Paper Power Pharmaceutical Other Industries Other Electronics Oil & Gas Mining g Metals Iron & Steel Food Electronics Chemical
Power sector has always been the biggest user of valves with 35%, followed by Water (18%) and Oil & Power sector has always been the biggest user of valves with 35%, followed by Water (18%) and Oil & gas (8%)
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Source : Mcilvaine Company
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Indian Valve Industry (Type of Players)
The Indian market of valves has traditionally been dominated by international companies with few exceptions like L&T Audco, Virgo engineers, etc. Factors associated with limited technology know‐how and financial constraints have impeded the growth of many others. p g y
MNC (Technology Focused)
Tyco Flow Control Emmerson Process Management Control (Formally Sanmar Ltd) Dresser Inc Weir group (Acquired BDK valves) L&T Audco Virgo engineers Fouress Engineering Spirax Sarco – Forbes Marshall
Joint Venture/Indian Large manufacturer (All sector ‐ )
Indian Medium size – Very specialized
Oswal Valves Dembla Valves Hawa Valves
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Source : Singhi Research
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Pump & Valve Industry (M&A Transactions)
Global M&A Transactions Acquirer KSB ITT Corporation Grundfos Grundfos Company • Seil Seres Co Ltd, South Korea • Shanghai Pumps, China • F.B.Leopold Company, US • Watermills Products, U.K Products, U.K • PACO Pumps, US • Wage Industries AB, Sweden • Hydro Technik Olomouc, Czech Republic p • Mixpac, Werfo & Mold, Swizerland • Jung Pumpen GmbH, Germany India Based M&A Transactions India Based M&A Transactions Acquirer WPIL Kirloskar Brothers Ltd Brothers Ltd Weir Prominent, Germany Wilo, Germany Company • Sterling Pumps, Australia • Braybar Pumps, SA Pumps, SA • SPP Pumps, UK • BDK Engineering, India • Heidelberg Fluid Control Systems • Mather & Platt Pump Systems
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Source : Singhi Research
Rationale • To access marine applications products • To access market • To expand into water segment • To expand into water segment To expand into water segment • General expansion • To expand into wastewater segment • Expansion into Eastern Europe • To expand Industrial segment • To expand into wastewater segment
Flowserve Corporation Sulzer Corporation Pentair Inc, US
Rationale •To access Australian market •To access South African Mining Industry To access South African Mining Industry • To access UK Market • To access Indian Market • To expand into water segment & access Indian market I di k t • To access Indian Market
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Pump & Valve Industry (Global Competition Matrix)
Pump Valves Oil &Gas, Chemicals, Power Power, Oil & Gas, Mining Power, Oil & Gas Industrial, Oil & Gas, Power Oil &Gas, Chemicals Oil &Gas, Chemicals Chemicals, Oil & Gas, Industrial
Industrial, Water
Importance of Pumps & Valves to Total Company Sales All All High Moderate Moderate Moderate High High High
Flowserve Weir group Colfax SPX ITT Crane KSB Sulzer Ebara Cameron International Emerson Electric Tyco flow control*
Power, Water, Chemicals Power Oil & Gas, Chemicals Oil & Gas, Chemicals, Power Power Private & Confidential
Low Low
* Tyco Flow control is being acquired by Pentair Inc Source : Singhi Research
Contents
I. Executive Summary p y II. Overview of Pump Industry a. Pump Industry ‐ Overview b. Global Pump Industry p y c. Indian Pump Industry d. Drivers & Challenges e. Players III. Overview of Valve Industry III. Overview of Valve Industry a. Valve Industry ‐ Overview b. Global Valve Industry c. Indian Valve Industry c. Indian Valve Industry d. Players IV. Recent Transactions in the Sector V. Pump & Valve Industry Global Competition Matrix V. Pump & Valve Industry – Global Competition Matrix VI. Opportunities in Pumps & Valves Industry in India
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Source : Singhi Research
VALVE OPPORTUNITIES
Indian Valve Industry – Consolidation Opportunities
Indian valve industry with a size of about $1.5 bn is a scattered industry. Like in the global industry, there are a few very large and several small companies with the user industry also being widely spread in segments starting with Power, Water, Oil & Gas and Refining etc. , , g The scattered industry scenario has given way for Consolidation Opportunities with an India Entry Platform & some companies have already taken lead on this like Weir. Indian Infrastructure spends are expected to cross $ 1 tn in the next 5 years and with about 1‐3% of the total spends in process industries towards valves and associated instrumentation the opportunities over the next 5 instrumentation, years are enormous. Seizing this opportunity, Global companies are moving from having mere representative offices to full fledged manufacturing bases in India. Further, the gap between the top two valve companies and the rest of the manufacturers as shown in the table below, give ample opportunity for consolidation –
Company
Virgo V l Vi Valves L&T-Audco BDK Valves –Weir Weir Emerson Process Management Co
TO– $ mn
200 160 40 32
Transaction History
Virgo V l Vi Valves ran a process f di for divestment, which generated i t t t hi h t d interest t from global players. L&T has already decided to take full control of Audco from Flowserve (50% JV partner) BDK Valves was acquired by Weir Group Erstwhile Fisher Sanmar Ltd – fully acquired by Emerson in 2011
As can be seen two major companies have already been acquired and the gap between the top two and the seen, acquired, rest leaves a lot of room for growth and consolidation.
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This note has been prepared by Singhi Advisors (P) Limited (SINGHI) and is considered to be strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this investment note, the recipient acknowledges and agrees that: In the event the recipient does not wish to pursue this matter; this document will be destroyed, or returned to the address listed below, as soon as possible; The recipient will not copy, fax, reproduce, divulge, or distribute this confidential proposal, in whole or in part, without the expressed written consent of SINGHI; All of the information herein will be treated b t t d as confidential material with no l fid ti l t i l ith less care th th t afforded than that ff d d to your own company confidential material. This document does not constitute an offer to sell, or a solicitation of an offer to purchase.
Disclaimer
The information contained in this document is for background purpose only, has not been verified and is subject to amendment, revision and updating. No representation or warranty, express or implied, is made as to the fairness accuracy or completeness of the information contained in this document and no reliance should be placed upon it. In particular, this document does not constitute or form part of an offer to sell or an invitation to purchase or subscribe for shares or other securities. It should be l l b clearly understood th t thi d d t d that this document d t does not purport t contain all t t to t i ll the information which may be required to appraise the project and that recipients are responsible for making their own decisions as to the completeness, fairness and accuracy of any information or opinion provided.
Branch Offices
KOLKATA D‐401‐402, Windsor Palace, D 401 402 Wi d P l 6A, Ironside Road, Kolkata‐700 019. Tel: +91 33 3052 0875 Fax: +91 33 3052 0876 MAURITIUS 37, Mere Barthelemy Street, Port Louis, Mauritius. Tel: +230 213 6514/5 Tel: +230 213 6514/5 Fax: +230 213 6512
AUSTRALIA Level 7, 160 Queen Street, L l 7 160 Q S Melbourne, Victoria ‐ 3000 Tel: +61‐3‐9855‐0075 Fax: +61‐3‐9923‐6303 Affiliate offices: Brazil, Colombia, Canada, France, Germany, Italy, Mexico, Poland, Russia, South Africa, Spain, Sweden, Switzerland, Th N h l d U i d S i l d The Netherlands, United Kingdom, US
Private & Confidential
