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EURION CONSTELLATION

CNG Cylinders in India: A Potential Long-term Opportunity Research Report

2009


Table of Contents Executive Summary .......................................................................................................................... Investment Perspective .................................................................................................................. Market Definition ............................................................................................................................... Growth Drivers .................................................................................................................................... Regulations and Government Support .......................................................................................... Fuel Cost .............................................................................................................................................. Infrastructure ..................................................................................................................................... Original Equipment Manufacturers ................................................................................................. Retrofitting .......................................................................................................................................... Demand & Supply............................................................................................................................... Demand................................................................................................................................................ International Market ......................................................................................................................... Domestic Market ...............................................................................................................................

Supply .................................................................................................................................................. Strengths, Weaknesses, Opportunities and Threats ........................................................... Strengths ............................................................................................................................................. High Entry Barriers ........................................................................................................................... Government Support ........................................................................................................................

Weaknesses ........................................................................................................................................ Availability of Natural Gas ................................................................................................................ Cost of Raw Materials .......................................................................................................................

Opportunities ...................................................................................................................................... Low Penetration ................................................................................................................................ Exports ..............................................................................................................................................

Threats ................................................................................................................................................. Conversion......................................................................................................................................... Safety Concerns ................................................................................................................................ Distribution of Natural Gas ...............................................................................................................

Raw Materials and Technology ..................................................................................................... Cost Factors .......................................................................................................................................... Regulations and Government Policies ....................................................................................... Adoption of CNG ................................................................................................................................. City Distribution Networks ............................................................................................................... Design and Quality Standards for CNG Cylinders ....................................................................... Key Players ...........................................................................................................................................


Everest Kanto ..................................................................................................................................... Rama Cylinders .................................................................................................................................. Nitin Cylinders Ltd ............................................................................................................................. Bharat Pumps and Compressors Ltd ............................................................................................. Lizer Cylinders Ltd ............................................................................................................................. Maruti Koatsu Cylinders Pvt. Ltd ....................................................................................................


CNG Cylinders in India: A Potential Long-term Opportunity

2009

Excerpts Investment Perspective The long-term market potential for high-pressure CNG cylinders in India is high. With Government initiatives for facilitating the discovery & exploration of natural gas, growth of robust distribution channels, fiscal benefits to the manufacturers of cylinders, retrofitting of CNG kits, tax exemption for commercial & heavy vehicles and new licensing policy, the industry is likely to register impressive growth over the coming years. The CNG cylinder manufacturers are currently benefitted by.................. Over the last two years, impacted by global recession, the industry was plagued by the plunging consumer demand and cancelled industrial orders in the automobiles sector........ Over the past seven years, CNG vehicles in India have grown at a CAGR of................ The gas distribution network in India is slated for a planned expansion............ The CNG cylinder industry is an attractive investment proposition from a long-term perspective, a horizon that covers requisite infrastructure development and evens out short-term volatility associated with new industries. The CNG cylinders market space is dominated by Everest Kanto Cylinders (EKC), the only listed supplier of CNG cylinders.

[This report covers in-depth, the growth drivers, demand & supply factors, SWOT Analysis, Government regulations, key players etc. along with the growth projections based on data from Government and nonGovernment agencies. For inquiries please contact: swati.sinha@icai.org or ca.swati.eurion@gmail.com]

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EURION - CNG Cylinders in India