Analysis of the road construction market in India
The relevance of research
Currently, most of the federal roads in India are in fair condition. Local roads are in a fairly good condition, but there are also a sufficient number of routes, the condition of which is catastrophic, requiring immediate repair of the canvas.
Purpose of the study
Analysis of the state of the road construction market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the road construction market.
Content
Part 1. Overview of the Indian Road Construction Market
1.1. Definition and Characteristics of the Indian Road Construction Market
1.2. Dynamics of the volume of the Indian road construction market, 2013-2017
1.3. Market structure by type of built roads in India
1.4. The structure of the road construction market in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis in the Indian Road Construction Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of road construction consumption
3.1. Estimated volume of consumption of road construction per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the road construction market until 2022
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian Road Construction Market
1.1. Definition and Characteristics of the Indian Road Construction Market
Highway - an engineering structure designed for the movement of cars. The main elements are: subgrade, pavement, roadway, shoulders, artificial and linear structures and all kinds of environments.
...
Significant changes in the road industry began in 2004 with the signing by the President of India of the Decree ""On the System and Structure of Federal Executive Bodies"", in accordance with which the Federal Highway Agency (Rosavtodor) was created. This federal executive body performs the functions of managing state property in the field of road transport and road facilities, as well as providing public services in the field of ensuring transport security in this area and in urban ground electric transport.
...
According to the data ... (Diagram 1), following the results of 2017, federal highways comply with regulatory requirements by ...%, in 2018 the share of such highways will be already ...%, which indicates that the decline in construction and reconstruction of federal roads after a period of economic instability in previous years.
...
Although the proportion of roads of regional and intermunicipal significance that meet regulatory requirements is growing, it remains quite low - less than ...%. The share of local roads that meet the standards, although higher ...%, but the dynamics is negative for the period from 2014 to 2017.
...
The share of federal highways in the total length of roads in India is only ...%. The quality of these roads meets the standards (as of the end of 2017) by ...%, and this figure is growing every year by at least ...%. At the same time, the share of federal highways with hard surface is almost ...%.
...
The main volume of work on the construction, reconstruction and overhaul of roads is carried out at the expense of the Federal Highway Fund, road funds of the states of India and municipal road funds. It follows that the states of India and municipalities are experiencing a significant shortage of funds to finance the repair and construction of roads subordinate to them.
...
Almost three-quarters of the entire length of federal highways are roads of categories II and III. Category II roads account for ...%, category III roads account for ...%. The remaining categories of roads in total occupy ...% of the total length.
...
More than ...% of the total length of federal highways is occupied by asphalt-concrete roads.
1.2. Dynamics of the volume of the Indian road construction market, 2013-2017
Consider the dynamics of the volume of the road construction market in India for the period from 2013 to 2017. The change in this indicator is shown in Diagram 5.
Diagram 5. Dynamics of the volume of the road construction market, 2012 - 2017, million Rs.
In general, the trend towards a significant decline, taken by the market back in 2014 and continued in 2015, is a reflection of the macroeconomic situation in India. In 2014, the rate of decline in completed construction amounted to almost ...%, and in 2015 it was equal to ...% compared to the previous year in 2014.
But already in 2016 and 2017, there has been a significant increase in the volume of the road construction market. In 2016, the market growth rate was ...%, and at the same time, in absolute terms, the level of construction of roads in 2013 was reached, and in 2017 it reached the maximum of this indicator over the past 6 years, while the growth rate compared to the previous year was .. .%.
One of the key market growth factors is ... .
The growth and progressive development of the road construction market is largely determined by ... . Road funds are the main source of financing for the construction and maintenance of motor transport infrastructure.
...
1.3. Market structure by type of built roads in India
Figure 6 shows the structure of road construction in India. In 2017, the construction of new, reconstruction and repair of existing federal highways accounts for ...%, which in physical terms is ... kilometer.
During the same period, ... kilometers of regional and local roads were repaired, reconstructed and built, which in the general structure in terms of their significance is ...%. These data indicate that ... .
...
Diagram 7 shows the structure of the road construction market in India by type of work performed. The main share of work in 2017, namely ...%, was carried out to repair existing roads of all levels of significance, since one of the main goals of road activity programs is to bring roads into a standard condition. The share of construction and reconstruction accounted for ...%, which in physical terms is ... kilometers.
Diagram 7. Structure of the road construction market by type of work performed, 2017, %
1.4. The structure of the road construction market in the Union Territories
Figure 8 shows the structure of the road construction market in India by Union Territories. In 2017, the largest market share was in the Central Federal District, namely ...%. The smallest share of the road construction market falls on the North Caucasian Federal District, it is ...%. More than half, namely ...%, of the road construction market falls on the Federal Districts closest to the capital of the state, namely the Central Union Territories, the North -Western Union Territories and Volga Union Territories. At the same time, the total share of the areas of these Federal Districts is only ...% of the area of India, which indicates the concentration of the main volume of road construction in this part of the state.
Diagram 8. Structure of the road construction market in India by Union Territories, 2017, %
1.5. Assessment of current trends and development prospects of the studied market
The development trends of the road construction market in the near future will depend mainly on ... . The basic values of financing the industry are laid in ... .
...
Globally, the prospects for development in the construction and repair of highways are considered in such documents as ... . The main goals considered in these programs are as follows: ...
In achieving these goals, one of the most important roles will be played by .... In this regard, the market for the construction and repair of roads in the future will be under close attention ... . This should reflect ... .
1.6. Assessment of factors affecting the market
Let's consider the main macroeconomic factors influencing the road construction market.
Roads are the most important part of the state's infrastructure, so the largest indicators of the economy will affect the road construction sector.
Economic ...
Social ...
Technological ...
Political ...
Table 4. STEP analysis of factors influencing the road construction market
All technological and social factors have ... a vector of influence on the considered road construction market. ...
1.7. Analysis of sectoral indicators of financial and economic activity
...
Part 2. Competitive Analysis in the Indian Road Construction Market
2.1. Major players in the market
The road construction market is one of the most highly competitive in the Indian economy. At the moment, ... companies are actively working in this market niche.
...
The undisputed leaders in the road construction market are XXXXXX JSC - the only market participant with a share of more than ...%, XXXXXX JSC, XXXXXX JSC, XXXXXX JSC and XXXXXX LLC, whose market shares do not exceed ...%. In total, these companies account for about ...% of the entire road construction market in India.
2.2. Market shares of the largest competitors
Diagram 19. Shares of the largest competitors in the road construction market in 2017
Much more than half, namely ...% of the road construction market in India is occupied by companies with revenue shares of less than ...% in the total revenue of companies operating in the industry under consideration. The number of these companies changes annually, but in 2017 there were more than ... .
The remaining ...% of the market divided among themselves the Top 11 organizations, each of which occupies a market share of more than ...%.
2.3. Profiles of major players
...
Diagram 20. Dynamics of the total revenue of the largest operators of the road construction market (TOP-5) in India, 2013-2017, million Rs.
The dynamics of the revenue of the largest companies working in the field of road construction has a wave-like character, reflecting the macroeconomic situation in the country. ...
Part 3. Analysis of road construction consumption
3.1. Estimated volume of consumption of road construction per capita
...
The nature of the change in the indicator of road construction per capita is undulating. From 2013 to 2015, there is a drop in the level from ... to ... thousand rupees per person, the rate of decline in 2014 and 2015 was more than ...% annually, this indicates the impact of the macroeconomic situation and the crisis on the dynamics of the indicator. In 2015, the change in the indicator was also affected by an increase in the population, not only due to natural movement and migration, but also as a result of the accession of the Republic of Crimea and the city of Sevastopol. In 2016, the decline was replaced by growth, and the construction rate almost reached the level of 2013, showing a growth rate of ...%. In 2017, the upward trend continued: the level of construction of roads in India per capita reached the value of ... thousand rupees per person, showing a growth rate of ...% compared to 2016.
3.2. Market Saturation and Estimated Market Potential in India
The vast majority of the volume of road construction in India is due to the financing of this industry by special road funds: federal, regional, local. Therefore, the potential and further development of this industry entirely depends on the amount of money allocated for the construction, reconstruction and repair of roads by different levels of government. The existence of government targeted programs and the Transport Strategy of India for the period up to 2030 aimed at improving the quality of roads, planning the construction of new ones, government subsidies at the regional and local levels of this industry, searching for sources of additional non-government funding, government plans to improve traffic safety indicate ... the probability of increasing the capacity and potential of the market.
...
Table 14. Comparative data on the length of roads and other indicators in different countries of the world for 2017, units rev.
...
Thus, based on a comparison of indicators for developed countries and India, as well as the need for the construction and repair of roads, the potential for the development of the road economy market ... .
...
3.3. Description of consumer preferences
...
Road construction includes both construction and reconstruction, repair, maintenance not only of the roads themselves, but of the entire roadside infrastructure. Therefore, consumer preferences in the field of road construction are directly related to the availability and condition of these structures.
...
3.4. Price analysis
...
In the “Construction” sector, a significant jump in CPI was observed only in 2016, it amounted to ...%, in other years of the period under review from 2013 to 2017, the index value fluctuated between ...% and ...%. According to the data as of September 2018, the consumer price index for Construction at the end of 2018 will be at the level of the value of the previous 2017. The CPI for road construction is on average half a percentage point higher than the CPI for construction as a whole.
...
Part 4. Evaluation of factors of investment attractiveness of the market
...
Part 5. Forecast for the development of the road construction market until 2022
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. The share of the length of federal roads that meet the requirements of regulatory documents, 2013-2018, %
Diagram 2. Share of public roads that meet regulatory requirements, 2012-2017, %
Diagram 3. Length of federal roads by categories for 2017, %
Diagram 4. Federal roads by type of coverage for 2017, %
Diagram 5. Dynamics of the volume of the road construction market, 2012 - 2017, million Rs.
Diagram 6. The structure of the road construction market by the level of their importance, 2017, %
Diagram 7. Structure of the road construction market by type of work performed, 2017, %
Diagram 8. Structure of the road construction market in India by Union Territories, 2017, %
Diagram 9. Dynamics of India's GDP, in 2011-2018 (forecast), % to the previous year
Diagram 10. Monthly dynamics of the US dollar against the rupee, 2014 - September 2018, Rs. for 1 US dollar
Diagram 11. Population dynamics in India, 2010-2017, million people, % of the previous year
Diagram 12. Comparison of GDP and population dynamics in India, 2011-2017, % to the previous year
Diagram 13. Dynamics of real incomes of the population of India, 2011–April 2018, % to the previous year
Diagram 14. Profit (loss) from the implementation of road construction in India, adjusted for the Union Territories, 2013-2017, million Rs.
Diagram 15. Profitability of profit before tax (profit of the reporting period) in the field of road construction in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 16. Current liquidity (total coverage) in the field of road construction for 2013-2017, times
Diagram 17. Business activity (average term of receivables turnover) in the field of road construction, for 2013-2017, days days
Diagram 18. Financial stability (security of own working capital) in the field of road construction, in comparison with all sectors of the Indian economy, 2013-2017, %
Diagram 19. Shares of the largest competitors in the road construction market in 2017
Diagram 20. Dynamics of the total revenue of the largest operators of the road construction market (TOP-5) in India, 2013-2017, million Rs.
Diagram 21. The volume of consumption of road construction per capita, 2013-2017, thousand Rs./person
Diagram 22. Forecast of the volume of the road construction market in 2018 - 2022, billion Rs.
Tables
Table 1. Indicators of the length of roads in India by levels of significance for 2017, units rev.
Table 2. The main technical characteristics of the classification features of roads
Table 3. Indicators on cargo turnover and availability of vehicles in India for 2013-2017, units rev.
Table 4. STEP analysis of factors affecting the road construction market
Table 5. Profit (loss) from the implementation of the construction of roads in the Union Territories of India, 2013-2017, million Rs.
Table 6. Gross profitability of the road construction industry in comparison with all sectors of the Indian economy, 2013-2017, %
Table 7. Absolute liquidity in road construction compared to all sectors of the Indian economy, 2013-2017, times
Table 8. The main companies participating in the road construction market in 2017
Table 9. Basic information about JSC ""ХХХХХ""
Table 10. Basic information about JSC ""ХХХХХ""
Table 11. Basic information about JSC ""ХХХХХ""
Table 12. Basic information about JSC ""ХХХХХ""
Table 13. Basic information about LLC ""ХХХХХ""
Table 14. Comparative data on the length of roads and other indicators in different countries of the world for 2017, units rev.
Table 15. Consumer Price Indices for Road Construction in India in 2013- Sept. 2018, %
Table 16. Average prices for the construction of roads in the Union Territories in 2018, million Rs. for 1 running km of road
Table 17. Assessment of factors of investment attractiveness of the road construction market
Table 18. Estimation of the volume of necessary resource support for the implementation of the Transport Strategy of India in terms of the construction of roads, 2017-2022, billion Rs.
Research benefits
The most complete presentation of information in an accessible and visual form. When ordering a marketing research, you can be sure of the accuracy and reliability of market information, which allows you to make informed management decisions and not miss the attractive opportunities that the market provides.
Directions for using the results of the study
To bring a new product to the market, organize a new production, correct the current strategy of the company or develop a new one, to make various decisions
Recommended
For senior and middle managers, marketing specialists, investors, business owners
Additional options
Create a customized ppt presentation
Extended update of the report ""according to the goals and objectives of the Customer""
Business plan development
All reports