Frost Radar™: Southeast Asian Billet Market, 2020

A Benchmarking System to Spark Companies to Action - Innovation That Fuels New Deal Flow and Growth Pipelines


RELEASE DATE
05-Jan-2021
REGION
South Asia, Middle East & North Africa
DELIVERABLE TYPE
Frost Radar

RESEARCH CODE
PB7B-01-00-00-00
SKU
MM00015-SA-MR_25140
Yes
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Frost Radar™: Southeast Asian Billet Market, 2020
Published on: 05-Jan-2021 | SKU: MM00015-SA-MR_25140

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CEOs in the billet and extrusion industry of Southeast Asia must prioritize sustainability by investing in ways to decrease their organizations’ carbon footprint. Frost & Sullivan recognizes that value chain integration via secondary production is an emerging trend. Companies in the billet industry are demonstrating desire to backward and forward integrate, thereby streamlining operations in a move toward a sustainable business model. The utilization of scrap as a major feed material in billet operation is likely to become a benchmark for a higher recyclability ratio; also, the extent of in-house scrap generated during the extrusion process is highest in the aluminum industry.

The COVID-19 pandemic impacted the industry negatively in the first half of 2020 as LME index prices slumped to a 3-year low of $1,400 /MT; however, the long-term forecast for emerging markets in Southeast Asia is bright. For the short-term, the market will remain in recovery mode.

Of all sectors, construction has the most favorable growth conditions in Southeast Asia where demand for billets has been increasing in response to activity in the architectural extrusion segment. Indonesia, Vietnam, India, Thailand, the Philippines, and Malaysia have many on-going construction projects that will spur billet market growth. Frost & Sullivan expects the construction segment to remain the largest customer of billets, but the trend of light-weighting vehicles will position the automotive sector boost demand for billets. In addition, some companies in the industry are developing niche, high-value billet grades for the defense industry.

In the field of more than 25 industry participants, Frost & Sullivan independently plotted the top 10 companies in the Frost Radar analysis ™. These market participants have demonstrated innovation and growth strategies that have led to superior performance. Frost & Sullivan attributes this to their proactive product development strategies that address the environmental impact concerns of regulatory authorities and OEMs. The Frost Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies based on their strengths, opportunities, and market positioning. We discuss strategic market imperatives and the competitive environment that vendors operate in as well as make recommendations for each provider to spur growth.

Strategic Imperative

Strategic Imperative (continued)

Growth Environment

Growth Environment (continued)

The Frost Radar™: Southeast Asian Billet Market

The Frost Radar™: Competitive Environment

The Frost Radar™: Competitive Environment (continued)

The Frost Radar™: Competitive Environment (continued)

Alca Metals (PT. ALFO CITRA ABADI)

Formosa Shyen Horng Metal Sdn. Bhd

Hindalco Industries Ltd

Jindal Aluminium (JAL)

Mien Hua Precision Mechanical Co. Ltd

National Aluminium Company Limited (NALCO)

Press Metal

PT Indal Aluminium Industry Tbk (Indal)

PT Indonesia Asahan Aluminium (Inalum)

Tostem Thai Co Ltd

Strategic Insights

Significance of Being on the Frost Radar™

Frost Radar™ Empowers the CEO’s Growth Team

Frost Radar™ Empowers Investors

Frost Radar™ Empowers Customers

Frost Radar™ Empowers the Board of Directors

Frost Radar™: Benchmarking Future Growth Potential

Frost Radar™: Benchmarking Future Growth Potential

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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

Growth Index

Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.

  • Market Share (previous 3 years)
    This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.
  • Revenue Growth (previous 3 years)
    This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.
  • Growth Pipeline
    This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.
  • Vision and Strategy
    This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?
  • Sales and Marketing
    This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

Innovation Index

Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.

  • INNOVATION SCALABILITY
    This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.
  • RESEARCH AND DEVELOPMENT
    This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.
  • PRODUCT PORTFOLIO
    This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.
  • MEGATRENDS LEVERAGE
    This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline.
  • CUSTOMER ALIGNMENT
    This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

Significance of Being on the Frost Radar™

Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.

  • GROWTH POTENTIAL
    Your organization has significant future growth potential, which makes it a Company to Action.
  • BEST PRACTICES
    Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.
  • COMPETITIVE INTENSITY
    Your organization is one of the key drivers of competitive intensity in the growth environment.
  • CUSTOMER VALUE
    Your organization has demonstrated the ability to significantly enhance its customer value proposition.
  • PARTNER POTENTIAL
    Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

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Speak directly with our analytics experts for tailored recommendations.

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