Source: Industry, CRISIL Research

Amid the economic slowdown during fiscal 2020, demand for the underlying industries were hit, impacting the
demand for cranes. Demand volumes dropped 2-4% on-year, restricting the growth in the overall market.

Furthermore, the Covid-19 pandemic has hit major end-user sectors hard during the first half of fiscal 2021. In
turn, CRISIL Research expect the demand for cranes to shrink 5-7% in fiscal 2021, pulling the industry down to
Rs 18-19 billion.

Going ahead, with an expected improvement in the economy, as well as gradual demand improvement in
underlying segments, CRISIL Research expect the industry to reach Rs 24-26 billion by fiscal 2024, growing at a
compound annual growth rate (CAGR) of 5-7% between fiscals 2020 and 2024. This growth is expected to be
fuelled by continued investments in the end user segments, and in turn, capacity expansion by players to cater to
the sustained demand growth in the underlying industries.

Growth drivers

Pick up in key end user sectors to support growth

  
   

 

 

 

 

 

 

 

 

 

 

 

  

Cars & utility vehicles ag Improvement in economy, new launches, and financier support to back
- : __ passenger vehicle growth
Commercial [5:7 althy industri focu /
‘Tractors 46 Normal monsoon and government support |
Rural/ Semi urban markets to steer long term growth, but Covid 19
[ Gygwnedes a _ disruption o pose a sped breaker in FY21
“Metals | |
a = Affordable housing and infrastructure projects to back steel demand
~ Growth in ferrous castings, driven by auto and pipes sector
‘9 ‘ Investments in power transmission and distribution sector and
Aluminium & alumina 23
automobile demand
‘Power 3-5 Economic growth recovery, expansion in reach |

 

 

 

Note: Growth rates are for domestic industry
Source: Industry, CRISIL Research

Key Players

Summary of financials for key players

 

 

 

 

 

 

 

 

Cerny Company Long
—_ 853. 848.
aes  GeS Gee Revenue Rs million 1119 : i
(Standalone) | PAT Rs million 128 98 80 |
a 458
Giip Rnglneers Pot bed | Revenue Rs million 517 sil 45% |
(Standalone) | PAT Rs million 07 37 53 |
} a 457
Spardine Ecuipment Pyelid Revenue Rs million 836 554 * |
(Gtancalone) PAT Rs million 78 29 3
| ill 217.2
MM Engineers Pvt Ltd “Revenue Rs million NA 284.7 |
(Standalone) | PAT Rs million NA 19 46 |

 

 

 

 

 

 

Note: PAT — profit after tax, FY20 data for unlisted companies is not available
Source: Ministry of corporate affairs, Rating rationales, Company website, CRISIL Research

REVIEW AND OUTLOOK ON STORAGE SOLUTIONS MARKET FOCUSING ON RACKS,
SHELVES AND PALLETS USED IN THE WAREHOUSING INDUSTRY

Introduction

The storage solutions industry broadly comprises pallets, racking solutions and shelving solutions.

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