Dec, 2010      |     By Anil Kumar , Ujjwal Chaudhry

Product Portfolio Extension

Indian PPE market is estimated to be at INR 7800 million


Anil Kumar

Anil Kumar

CEO

Ujjwal Chaudhry

Ujjwal Chaudhry

associate director

Key Assumptions and Background

Study is done to understand the market entry feasibility of Personal Protective Equipment (PPE) for GNO from the perspective of 'Abrasive business synergy'

Areas covered in this study include:

  • Synergy between PPE market and current GNO ecosystem (Customer, Channels and Brand Image)
  • Develop an understanding of market from:
    • Demand (Customer) Side
    • Supplier (Manufacturer/Importer) Side
    • Product Side
    • Channels Side

Addressable market and expected revenue for 1 to 5 years of launch

Study has come up with scenario based recommendations for GNO's PPE plan

Recommendations need to be 'Test marketed' before creating a detailed go to market strategy

RedSeer has completed 6001 Primary Interviews across Customers, Channels and PPE Suppliers

Executive Summary

Indian PPE market is pegged at around INR 7800 Million with an expected CAGR of ~19%

By Revenue 60% of Indian PPE market is controlled by Organized players

Organized Market is consolidated with presence of 10-12 Major players, unorganized market is highly fragmented

Current GNO business has high level of synergy with PPE market due to Channel and Customer Readiness along with GNO Brand

PPE market is Price sensitive but big customers are ready to pay a premium on brand and quality

Direct supplier channel are the key form of PPE distribution for large and organized players

There is a definite space for new entrants in market, but 'me-too' products will have limited appeal

SWOT Analysis of GNO in PPE market

Agenda

Market has been estimated from Demand and Supply Side

Indian PPE market is estimated to be at INR 7800 million

Hand, Foot and Respiratory account for biggest pie of PPE market by revenue

By revenue 60% of the PPE market is organized - 3M is the biggest player

Agenda

… with a combined annual turnover of INR 167 Million

GNO Channels dealing in PPE are well spread across India

GNO Channels are not product or brand focused

Reasons for keeping and not keeping GNO PPE

85% of Customer's are ready to consider using GNO PPE products

~80% non GNO PPE Channels are ready to do business with GNO

Agenda

Low penetration industries have high growth rate

Automotive and Auto-Ancillary have the highest PPE usage per person

Hand Protection is the most commonly used product across every industry

3M and Karam are the most popular brand in organized industry

Agenda

An Overview of PPE Products

Evaluation of products on Key parameters

Fall has the highest and Hand Protection has the lowest organized revenue share

Price range for various product categories

Price Sensitivity analysis (Estimated and Directional)

1: Price and Volumes are indicative based on supplier interviews Source: RedSeer Analysis, 

1: Price and Volumes are indicative based on supplier interviews Source: RedSeer Analysis, 

Pain Areas in various PPE categories

Agenda

Large organizations procure PPE directly from suppliers

Industrial channels exclusively deal in PPE products, with limited synergy to welding products

Non GNO PPE Channels have low brand affinity

Agenda

There are four categories of PPE players in Indian market…

…which broadly falls under Organized and Unorganized categories

~1/3rd of the top supplier's revenue is exported

Existing Manufacturing PPE hubs in India

Suppliers Strength Areas – by products

Suppliers Strength Areas – by Industry

Distribution Analysis of Top 61 PPE Suppliers

Agenda

Industries having synergy with GNO

PPE Product Suitability for GNO

Market for Achievable Revenue projection

Addressable Market Size

Achievable Market for GNO PPE in three scenarios

There are three Possible Business Case to address the PPE market

Agenda

Hand, Foot and Respiratory account for biggest pie of PPE market by revenue

Break up of responses by geography – 600 Responses

Break-up of responses by type of interviewee– 600 Responses

Break-up of responses by mode of interview– 600 Responses

Break-up of responses by mode of interview– 600 Responses

Break-up of responses by Channel-Type

Product Line Extension Roadmap

Break-up of Channels interviewed by Monthly Revenue

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