1

2

� Industry Overview

� CE Market Size & Growth

� Product Localisation

� Importance of Localized Manufacturing

3

4

5

Key highlights of this industry are:

• One of the fastest growing industry in India

• Technology driven

• Continuous innovation

• High involvement in R&D activities

• Advertising and brand building has a key role

• Demand is seasonal and cyclical

• Price and brand differentiation

• Supply and distribution network

• After sales service

Source: Samsung InternalSamsung Internal

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7

Consumer

Electronics

8

9

� Industry Overview

� CE Market Size & Growth

� Product Localization

� Importance of Localized Manufacturing

10

• FPTV Market to rise from 3.7M units in ‘11 to 5.2M units in ‘12 (41% Growth)

• Household Penetration of FPTVs will increase from 4% in ‘11 to 6% in ‘12

FPTV Market SizeFPTV Market Size

[M Units]

75%

100%

79%

48%

41%

Household PenetrationHousehold Penetration[Penetration] [Households]

Source: Samsung InternalSource: Samsung Internal

11

20% 22% 24%27% 29%

32%

• Ref market estimated at 9.8 M units & expected to grow @ 12% in volume terms

• All India Penetration Rate : 20% in ’10 � 32% in ’15

‘09 ‘10 ’11 ‘12 ‘13

7.07.9

8.99.8

10.8

11%11%

12%12%FF

DC

[M Units]

22%

78%

21%

79%

22%

78%

22%

78%

22%

78%

‘10 ‘11 ’12 ‘13 ’14 ‘15

Industry Demand Penetration Rate

Source: Samsung InternalSource: Samsung Internal

REF Market SizeREF Market Size Household PenetrationHousehold Penetration

12

• India WM Market is valued at $1555 Mn with 16% CAGR . Volume estimated at 6.5Mn

Units (’15).

• All India WM Penetration Rate : ‘08 � 4% ,’15 � 12%.

v

Rs Bn

Low Penetration RateIndustry Size

2011 – 3.8 Mn Units

SA (63%) 2.4

TL (27%) 1.0

FL (10%) 0.4

Source: Samsung InternalSource: Samsung Internal

13

• MWO Industry to grow at 14% CAGR to reach a size of 1.8 M units in 2013

• Convection will become the mainstay of MWO Business

• Most sales from new users due to increase in penetration in top 50 and emerging

towns

1.0

1.28

1.46

1.6

1.8

20%

14%

10%

14%

[M U

nit

s]

Year Year

Segment Movement

Co

ntr

ibu

tio

n

Market Size

Source: Samsung InternalSource: Samsung Internal

14

152M 160M

5%

8%

25%

16%

7%

33%

6%

’11 Seg. Cont.13%

13%

22%

13%

6%

29%

5%

’12 Seg. Cont.

150%

75%

12%

8%

11%

• 160M market size is conservative estimates based on current macro conditions

however market can go up to 175-180M

Source: Samsung InternalSource: Samsung Internal

15

� Industry Overview

� CE Market Size & Growth

� Product Localization

� Importance of Localized Manufacturing

1616

1717

Product Industry * Samsung

CTV 70 % 80 %

Panel TV 13 % 15 %

Split AC 60 % 63 %

Ref 75 % 50 %

Washers 72 % 57 %

MWO 40 % 100 % Import

* Estimates

Comp1 Comp 2 Comp3 Comp4 Comp5 Comp6

CTV CRT Cabinet Speakers Remocon Semiconductor FBT / Tuner

Panel TV Panel Cabinet Stand SMPS Semiconductor Remocon

Split AC Compressor Condenser Motor Cross Fan Connecting Tube Remocon

REF Compressor PCM Rollbond Chemicals Resin Thermostat

WM Motor Timer PCM Gear Box Clutch Valve

MWO Cavity Magnetron Door Assembly Packing Material

1818

1919

• Cater to Component requirements of existing players

• Re emergence of Domestic players in a big way

• Entry of Private Labels by modern retailers like Croma & Big Bazaar

• Increasing focus of Japanese companies in the Indian market & local manufacturing

• Exports to International customers & benefit from Economies of scale

• Increase in average price levels for Chinese / Imported products

• Value economics using Contract manufacturing

• Opportunity & expertise for Forward integration!!

2020

THANK YOU