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Market analysis of self-tapping screws in India

Release date 05.08.2022

Number of pages 44

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The relevance of research

The subject of this study is the Indian market for self-tapping screws as part of the fastener market. The self-tapping market in this study is understood as a set of enterprises that form the market supply, the number of consumers that form the market demand, as well as the relationship that arises between sellers and consumers

Purpose of the study

Analysis of the state of the market for self-tapping screws in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market of self-tapping screws

Content

Part 1. Overview of the Indian market for self-tapping screws

1.1. Main characteristics of the market

1.2. Dynamics of the market volume of self-tapping screws 2017-2021 Potential market capacity

1.3. Assessment of factors affecting the market

1.4. Self-tapping market life cycle stage

1.5. Competition from substitute products

Part 2. Competitive analysis in the self-tapping 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 the production of self-tapping screws

3.1. Volume and dynamics of domestic production of self-tapping screws

3.2. The share of exports in the production of self-tapping screws

3.3. Segmentation of production of self-tapping screws by regions

3.3.1. Production by Union Territories

3.3.2. Production by states of India

Part 4. Analysis of foreign trade deliveries of self-tapping screws

4.1. The volume and dynamics of imports of self-tapping screws

4.2. Import structure

4.3. Volume and dynamics of export of self-tapping screws

4.4. Export structure

Part 5. Analysis of the consumption of self-tapping screws

5.1. Dynamics of consumption of self-tapping screws

5.2. Analysis of the results of tenders for the purchase

Part 6. Price Analysis

6.1. Average producer prices by union territories

6.2. Average consumer prices by states in India

Part 7. Assessment of factors of investment attractiveness of the market

Part 8. Market development forecast for self-tapping screws until 2026

Part 9. Recommendations and conclusions

Research excerpt

Part 1. Overview of the Indian market for self-tapping screws

1.1. Main characteristics of the market

Self-tapping screw (self-tapping screw, self-tapping screw, screw) - a fastener in the form of a rod with a head and a special external thread that forms an internal thread in the hole of the object to be connected. It has a triangular thread on a cylindrical surface, completely or partially covering the cylindrical surface. Self-tapping screws are both sharp and with a drill.

For the manufacture of self-tapping screws, materials such as carbon steel, stainless steel, brass can be used, while there are different types of self-tapping screws coating: phosphated (black), oxidized (black), galvanized, galvanized yellow, uncoated. Self-tapping screws come with different heads, ends and threads. According to their purpose, self-tapping screws are divided into universal, for wood, for drywall and gypsum-fiber sheets, for sheet metal and metal profiles, for window profiles, and for roofing. Self-tapping screws are widely used during construction work, in the manufacture of furniture.

Consumers in the Indian market for self-tapping screws include both legal entities engaged in construction and repair work, and individuals who independently carry out such work for their own purposes. Manufacturers include companies engaged in metal processing or the production of hardware, smaller manufacturers focus on the production of self-tapping screws and other fasteners.

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1.2. Dynamics of the market volume of self-tapping screws 2017-2021 Potential market capacity

Consider the dynamics of the volume of the self-tapping screws market in India.

Self-tapping screw market growth rate in 2017-2021 allow us to state that the market is in a growth stage close to maturity, with the prospect and potential for further growth at multidirectional growth rates, this is indicated by a positive trend in the development of the construction industry, which determines the growth of building materials markets, which include self-tapping screws as fasteners, and as well as stimulating the import substitution program, which affects the increase in domestic production.

Diagram 2. Dynamics of the market volume of self-tapping screws, 2017-2021

The volume of the Indian market of self-tapping screws in physical terms during the study period has a clearly positive dynamics, which is due to the high demand for self-tapping screws with fluctuations in the volume of domestic production of self-tapping screws ...

1.3. Assessment of factors affecting the market

Let's consider the main factors influencing the market and, accordingly, the demand for self-tapping screws in India.

Economic:

The instability of the rupee against the US dollar has a negative impact on both the country's economy as a whole and the cafe market. The negative impact of the factor is manifested in an increase in the cost of imported products, an increase in retail prices for goods and services, an increase in inflation, which forces consumers to reduce the purchase of non-essential goods and slows down the growth of the Indian economy as a whole and individual industries;
decrease in real incomes of the population - directly negatively affects the consumption of goods, which may adversely affect the demand for finished products of enterprises-consumers of corrugated paper;
growth in the cost of raw materials – the main drivers of cost growth in recent years were wages, rising prices for raw materials and resources, devaluation of the national currency and general inflation.

Political:

...
The Government of India has been stimulating an increase in housing rentals in India in recent years, which, in turn, stimulates the growth of the building materials market, including self-tapping screws;
the production of self-tapping screws in India is regulated by state standards (about 17 GOST for the production of various types of self-tapping screws), while the activities of manufacturers are not subject to licensing and mandatory certification, however, the presence of certificates for manufactured products confirms the quality of products and helps to establish sales in large networks or in export directions .

Technological:

the development of online trading is a definite plus, since it reduces the time for finding a supplier and buyer, placing an order, making the process of paying for goods and exchanging documents more convenient;
lack of rapid changes in the equipment market.

Social:

India's population is slightly declining in 2018-2021. - accordingly, the level of consumption of goods in the domestic market of India also slightly decreases.
Changing consumer habits - in recent years, an increasing number of Indians use the Internet to find the necessary information, receive government and other services, which affects the change in habits: people prefer social networks and news feeds to reading newspapers and magazines, personal meetings are replaced by communication in instant messengers , purchases are made in online stores with delivery, etc. Such changes have a direct impact on the market for self-tapping screws, as well as on the building materials market in general - citizens began to buy more online during the pandemic in 2020, which increased the demand for home delivery of goods. After the lifting of restrictions, delivery has not lost its popularity, which should be taken into account by companies working with the retail segment. As for the wholesale segment, online purchases are also relevant here: the possibility of online ordering, exchanging documents in electronic form is important, which affects the speed of the transaction and provides a certain convenience.

Table 1. STEP analysis of factors influencing the market for self-tapping screws

Based on the results of the analysis of the factors affecting the market of self-tapping screws in India, there is a predominant positive impact of the main number of factors on the market, and, accordingly, on demand.

The following political factors have a stimulating effect on the analyzed market: state support for manufacturers under the import substitution program, state support measures for SME staff in the current difficult situation, as well as the availability of state standards for the manufacture of self-tapping screws and the possibility of obtaining a quality certificate, which reduces the possibility of unscrupulous manufacturers. Positive technological factors include: the development of online trading, the lack of rapid changes in the equipment market. It is also worth noting the positive impact of such a factor as changing consumer habits, which stimulates the development of more convenient and faster transaction processing formats.

1.4. Self-tapping market life cycle stage

The market for self tapping screws in India is in a growth stage close to maturity.

The growth stage is characterized by high growth rates of production and revenue. The increase in sales is due to an increase in purchases by existing consumers who have a positive experience with the product. The main task of a company in the growth stage is to use all points of growth to extend this stage.

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It is very important to maintain existing sales and promotion channels and develop new ones. The product and its variations should become as accessible as possible for each consumer of the market. At the stage of growth, close to maturity, the product is in maximum demand, which makes it possible to facilitate negotiations with partners, plan production volumes in more detail and be confident in the sale of finished products.

At this stage, a base of regular consumers has already been formed. It is necessary to maintain contact and promptly respond to the requests of each of them, as well as monitor related markets - the entry of new players, changes in the composition, market trends. When working with a potential target audience, the emphasis should be on:

achieving awareness of the company's product and services among the potential target audience;
search for new consumers - use all opportunities to expand the target audience;
increasing the frequency of use of the service by existing customers;
active formation of loyalty and commitment to the manufacturer through attention to the needs of consumers.
...

1.5. Competition from substitute products

A screw can be considered an analogue product for a self-tapping screw in the field of construction, but at the same time it cannot be called a complete substitute for a self-tapping screw.

The screw looks like a rod with a head and a sharp thread. Before the head on the screw shaft, two sections can be distinguished with and without screw threads. Its head shape can be semicircular, hexagonal or countersunk. There are screws for wood and for metal. Wood screws have a coarser thread pitch than metal screws.

A self-tapping screw is a screw that has a sharp thread and has either a sharp tip or a drill tip. They are carved right up to the cap. Self-tapping screws are distinguished from screws by a thread pitch and a drill. There are also differences in the thread profile. Self-tapping screws have a sharper and higher thread with a different angle of inclination. Small drills are used for wood, large ones for metal. Self-tapping screws have a countersunk, semicircular head for a screwdriver or with a washer.

The main difference between screws and self-tapping screws is the absence of the need to prepare the material for the use of fasteners in the case of using a self-tapping screw: when using a screw, it is necessary to drill holes into which it is then screwed in, when using a self-tapping screw, such preparation is not required. It is also worth noting that screws have only two types of heads, while self-tapping screws have a huge number of types of heads (several types of countersunk heads, hexagonal with and without a washer, semicircular with and without a washer, cylindrical and trapezoidal).

Due to their strength, self-tapping screws are used for fastening various materials, from wood, plastic to metal, concrete, since self-tapping screws are made according to a certain technology - only durable steel alloys are used for manufacturing, which undergo subsequent heat treatment. As with all steel fasteners, self-tapping screws can be phosphated, oxidized or electro-galvanized with passivation for corrosion protection.

Based on the foregoing, we can conclude that at present self-tapping screws are more convenient for use as fasteners for various types of work. If 20 years ago screws were mainly used in India, now self-tapping screws have practically forced them out of the construction market, however, screws are used in other areas where they cannot be replaced.

Part 2. Competitive analysis in the self-tapping market

2.1. Major players in the market

There are more than one hundred enterprises in the Indian market for self-tapping screws, operating in the production and sale of fasteners, as well as in the production of hardware. Some companies that declare their main activity as the production of fasteners, in fact, are engaged in the import and packaging of imported products under their own brands, therefore, the number of manufacturers, excluding individual entrepreneurs, is less than a hundred. Since the share of imported products in the market is large, among the market participants, in addition to manufacturing companies, there are the largest importers of self-tapping screws and fasteners.

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As a rule, the main activities of such companies are the production of fasteners, the production of wire products, the production of hardware, or the sale of the listed products. At the same time, it should be noted that large manufacturers of self-tapping screws also often independently produce wire for the manufacture of self-tapping screws, mesh, as well as other fasteners. 7 companies can be considered the largest in the market of self-tapping screws - these are companies that have a stable annual revenue in all areas of activity, the products of such companies can be ordered online on the websites of enterprises or through a dealer network, in addition, manufacturers are exporters of self-tapping screws and other products of their own production.

2.2. Market shares of the largest competitors

The market shares of the largest market operators are calculated based on the production volume or import volume of self-tapping screws by such enterprises in 2021, calculated by GidMarket analysts.

The market leader is...

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2.3. Profiles of major players

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XXX

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Part 3. Analysis of the production of self-tapping screws

3.1. Volume and dynamics of domestic production of self-tapping screws

Diagram 5. Dynamics of production volumes of self-tapping screws in India for 2017-2021

The dynamics of the production of self-tapping screws in India has a multidirectional vector ...

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3.2. The share of exports in the production of self-tapping screws

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3.3. Segmentation of production of self-tapping screws by regions

Consider the segmentation of the production of self-tapping screws by regions of India based on production volumes.

3.3.1. Production by Union Territories

Table 4. Dynamics of the production of self-tapping screws in India by union territories, vol.

The dynamics of the production of self-tapping screws in the union territories reflects the overall dynamics of production in India as a whole.

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3.3.2. Production by states of India

The main Indian manufacturers of self-tapping screws are located in ...

...

Part 4. Analysis of foreign trade deliveries of self-tapping screws

4.1. The volume and dynamics of imports of self-tapping screws

The share of imports in the market of self-tapping screws during the study period ...

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4.2. Import structure

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4.3. Volume and dynamics of export of self-tapping screws

During 2017-2021 the volume of exports of self-tapping screws from India has multidirectional dynamics ...

...

Diagram 11. Dynamics of export of self-tapping screws in monetary terms

The difference between exports and imports - the trade balance - is the annual rate of consolidation of a country's foreign trade transactions. If the trade balance has a positive balance, this means that in monetary terms more goods were sent abroad than received from other countries. A positive trade balance indicates the demand for the goods of a given country on the international market, as well as the fact that the country does not consume everything that it produces, and vice versa, in the case of a negative trade balance.

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Export volumes are declining with a trend towards an increase in production volumes, import volumes remain high - all this suggests that production in recent years is increasingly oriented towards the domestic market, a small share of its products is exported by the largest manufacturers, respectively, the internal demand for self-tapping screws in the Indian the market is not satisfied and manufacturers have the potential to increase production volumes.

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4.4. Export structure

Export of Indian-made self-tapping screws is carried out mainly to Belarus, Kazakhstan, Ukraine and Poland. In 2021, export deliveries were made to 50 countries.

Part 5. Analysis of the consumption of self-tapping screws

5.1. Dynamics of consumption of self-tapping screws

The dynamics of consumption of self-tapping screws in the domestic market of India in the study period was calculated taking into account current prices, as well as their changes over the years. This calculation takes into account the import of products, calculated in ruble terms in accordance with the volume of imported products and the current dollar exchange rate in each year.

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5.2. Analysis of the results of tenders for the purchase

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The main organizers of tenders for the purchase of self-tapping screws are budgetary organizations whose activities relate to the management and operation of prisons, correctional colonies and other places of deprivation of liberty, hospital activities, the activities of general education and preschool institutions, that is, such activities that involve the maintenance of buildings and structures where similar organizations.

Part 6. Price Analysis

6.1. Average producer prices by union territories

Table 7. Average producer prices on the self-tapping screw market in the Union Territories

The average prices of manufacturers of self-tapping screws are calculated by GidMarket analysts based on open data from market operators and Rosstat data. The table shows the average producer prices for the Union Territories, where the production facilities of large manufacturers of self-tapping screws are located.

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6.2. Average consumer prices by states in India

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The average retail price for self-tapping screws was calculated by GidMarket analysts in accordance with the average producer price, the average markup and the normal distribution of prices across the states of India for similar types of goods, and the current prices for self-tapping screws (monitoring) are also taken into account in the calculation. Note that the retail price in this case will differ only in the cost of delivery, since corrugated paper is a product produced for further re-production, there are no such products in retail.

The average price per kilogram of self-tapping screws in India in 2021 is 394 rupees. The maximum cost of a kilogram of self-tapping screws in all the states represented is 731,3 rupees and was recorded in the Kamchatka Territory, due to the remoteness of this state from the main production sites and difficult logistics. The minimum price - 272,8 rupees per kilogram - in the Smolensk region.

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Part 7. Assessment of factors of investment attractiveness of the market

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Positive factors of the investment climate in the self-tapping market dominate over the negative ones.

negative factors.

The most significant positive factors.

Part 8. Market development forecast for self-tapping screws until 2026

The market analysis was carried out on the basis of methods based on identifying trends over time, adjusted for expert opinion in the industry. When compiling the forecast, methods of mathematical modeling, mathematical analysis and statistics were used, adjusted for market trends and expert opinions.

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Part 9. Recommendations and conclusions

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When entering the market of self-tapping screws, it is necessary to take into account the quality of the finished product, which is confirmed by the presence of a quality certificate (certification is currently not mandatory for self-tapping screws), the location of production sites convenient for shipments, the territorial location of competitors, as well as pricing, with the possibility of maintaining a competitive price in relation to to imported products.

Diagrams

Diagram 1. The ratio of imported and domestic products in the market of self-tapping screws,%

Diagram 2. Dynamics of the market volume of self-tapping screws, 2017-2021

Diagram 3. Revenue (net) from the sale of self-tapping screws in the union territories for 2017-2021, %

Figure 1. Self-tapping market life cycle stage

Diagram 4. Shares of the largest competitors in the market of self-tapping screws in 2021

Diagram 5. Dynamics of production volumes of self-tapping screws in India for 2017-2021

Diagram 6. Dynamics of the total revenue of the largest manufacturers (TOP-5) of self-tapping screws in India, 2017-2021

Diagram 7. The share of exports in production for 2017-2021

Diagram 8. Volume and dynamics of imports of self-tapping screws in physical terms

Diagram 9. Volume and dynamics of imports of self-tapping screws in monetary terms

Diagram 10. Dynamics of export of self-tapping screws in physical terms

Diagram 11. Dynamics of export of self-tapping screws in monetary terms

Diagram 12. Balance of exports and imports

Chart 13. Structure of exports by country in 2021

Diagram 14. Dynamics of consumption of self-tapping screws in monetary terms, 2017-2021

Diagram 15. Forecast of market size in 2022-2026

Tables

Table 1. STEP analysis of factors influencing the market for self-tapping screws

Table 2. The main companies participating in the market of self-tapping screws in 2021

Table 3. Profiles of companies participating in the self-tapping market in 2021

Table 4. Dynamics of the production of self-tapping screws in India by union territories, vol.

Table 5. Structure of imports of self-tapping screws by importing countries in 2021

Table 6. Data on the ten largest lots of tenders for the purchase of self-tapping screws held in 2021

Table 7. Average producer prices on the self-tapping screw market in the Union Territories

Table 8. Average consumer prices in the market of self-tapping screws by states of India

Table 9. Assessment of factors of investment attractiveness of the market for self-tapping screws

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