Market Research Report :Animal feed market india 2012

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Animal Feed Market – India

November 2012

2ANIMAL FEED MARKET IN INDIA 2012.PPT

SAMPLE

Executive Summary

MarketThe global animal feed industry showed a tremendous growth in terms of production during 20__, which was reported to be x mn tonnes In India, the total feed production during 20__ was found to be around y mn tonnes

Drivers & Challenges

Competition

Drivers—Growth in Livestock Population—Increasing Consumption of Animal Based Food Products

—Untapped Market Potential—Growth of User Industries —Growing Population—Increase in Disposable Income

Challenges—Rise in Ingredient Price—High Pricing —Lower Impact on Native Breeds

—Unpredictable Climatic Conditions

Major Players

Company A Company B. Company C

Company D Company E Company F

Trends

Exhibitions and EventsUsage of IT (information Technology)Feed Production from Unusual SourcesBypass ProteinStrategic ActivitiesReplacement of Molasses


SAMPLE

•Introduction

•Market Overview

Global

India

•Import & Export

•Drivers & Challenges

•Government Initiatives

•Trends

•Competition

•Strategic Recommendations

•Appendix


SAMPLE

ANIMAL FEED MARKET IN INDIA 2012.PPT

Introduction

In general, feed refers to the food that are fed to the farm animals, but, in technical terms compound animal feed is defined as a highly nutritious food component which is specially prepared for animals and can be fed

to them as the sole source of ration for their proper growth and development in order to enhance their productivity

Price of the raw materials

Factors determining the composition of animal feed

Nutritional value of the components

Nutritional requirements of the specific animal

Rules and regulations of the government

As the components used in preparing animal feed are mainly agro‐based, so, its composition is highly influenced by a country’s agricultural output

Factors

Just like human beings, animals also require a nutritionally adequate feed for their proper and healthy growth


SAMPLE

Global Market – Overview (1/2)

The changing food consumption pattern worldwide, is surely going to…

X20__

y20__

Production (mn tonnes)Year

• Animal feed is an essential component in the overall food production process, especially the livestock based food productsindustry• Generally, its production takes place in industrial feed mills or in simple on‐farm mixers

• The global animal feed market is witnessing surging demand owing to the growth in consumption of animal based food products

• It has been estimated that the consumption of meat and milk willrise at the rate of A% and B% per annum globally

During 20__, the global animal feed production was found to be around x mntonnes, showing a growth of z% from the

previous year

• In terms of overall feed production, A holds the top position followed by B,C,D, E and F• In 20__, India ranked as the pthnation among the top ten feed producing nations of the world

A6%A5%

A4%

A3%

A2%

A1%

F

E

D

C

B

A


SAMPLE

Global Market – Overview (2/2)

…boost the global feed industry in the upcoming years

•Worldwide, poultry feed accounts for the biggest share in the overall feed consumption followed by ruminant, pig, aqua and other species

P6%P5%

P4%

P3% P2%

P1%

OthersLatin AmericaMiddle EastNorth AmericaEuropeAsia

Poultry

R6%

R4%R5%

R3%

R2%

R1%

Pig

Q6%Q5%

Q4%

Q3%

Q2%

Q1%

Ruminant

S5%S6%

S2%S3%

S4%

S1%

Aqua

T4%T5%

T6%

T1%

T2%

T3%

Other Feeds*

*Note:Other feeds include horse feed and pet food

B5%B4%

B3%

B2%

B1%

Other FeedsAquaPigRuminantPoultry

Region Wise Breakup of Different Types of Feed Production (20__)


SAMPLE

Indian Market – Overview (1/2)

Although the industry is at its nascent phase but, it will witness…

•The first commercial production of animal feed in India started in the year 19__ after the establishment of medium‐sized feed plants in northern and western India

•During 20__, the production was around z mn tonnes which is expected to reach v mn tonnes by 20__, growing at a CAGR of p%

•Although, the industry is highly unorganized in nature, it is gradually converting itself into a more organized and well planned sector

Animal Feed – Production Volume

0

10

20

30

mn tonnesP%

20__

g

20__

f

20__

e

20__

d

20__

c

20__

b

20__

a

Production – Segmental Shares (2012e)

X4%X3%

X2%

X1%

Others

Aqua Feed

Cattle Feed

Poultry Feed

*Note: ‘Other’ includes feeds of other animals such as swine, sheep, goat, camel, dog etc


SAMPLE

Indian Market – Overview (2/2)

…robust growth in the coming years

India has a rich wealth livestock population which accounts for 10.71 per cent

of world's livestock resources which includes 16 per cent share in cattle and 55 per cent share in global buffalo population

Livestock sector accounts for y% of the total farm output in India, which

clearly implies that there will be rise in demand for animal feed in the near

future

In the production of any food product of animal origin, feed accounts for around z% of the total

production cost

India has a rich wealth livestock population which accounts for x per cent of world's livestock resources which includes a per cent share in cattle and b per

cent share in global buffalo population

x1%

X%

WorldIndia

Y1%

Y%

Other Farm OutputsLivestock Sector

Z1%

Z%

Other CostsFeed Cost


SAMPLE

Animal Feed Market Segmentation

Animal Feed

Poultry Cattle Aqua Other*

The Indian animal feed industry is primarily classified into three major categories and all the remaining types of animal feeds are considered under the group ‘other’

In terms of volume wise consumption, poultry feed accounts for the largest share of around a%,

followed by cattle feed (b%) and aqua feed (c%)

D%C%

B%A% Others

Aqua Feed

Cattle Feed

Poultry Feed

*Note: ‘Other’ includes feeds of other animals such as swine, sheep, goat, camel, dogs etc


SAMPLE

Import of Major Types of Animal Feed (1/3)

Compounded Animal Feed Major Importing Nations (2011*)

Major Importing Nations (2011*)Concentrated Compound Animal Feed

0

500

1,000

1,500

2,000

2,500

0

5,000

10,000

15,000

‘000 KgINR mn

20__

b4

a4

20__

b3

a3

20__

b2

a2

20__

b1

a1

ValueVolume

13.5%

2.1%4.4%8.2%

21.5%

50.3%

F

E

D

C

B

A

33.0%

10.5%11.2%

13.1%

15.9%

16.3%

U

T

S

R

Q

P

Note: HS Code 23099010 (Compounded animal feed), HS Code 23099020 (Concentrated compound animal feed), (2011*) implies figures between Apr‐Dec 2011

0

500

1,000

1,500

0

2,000

4,000

6,000

8,000

d1

‘000 KgINR mn

20__

d4

c4

20__

d3

c3

20__

d2

c2

20__

c1

Volume Value


SAMPLE

Drivers & Challenges – Summary

Increase in Disposable Income

Drivers

Growth in Livestock Population

Increasing Consumption of Animal Based Food Products

Untapped Market Potential

Growth of User Industries

Growing Population

Unpredictable Climatic Conditions

Challenges

Rise in Ingredient Price

High Pricing

Lower Impact on Native Breeds


SAMPLE

Key Trends ‐ Summary

Replacement of Molasses

Exhibitions and Events

Usage of Information Technology (IT)

Bypass Protein

Strategic ActivitiesFeed Production from

Unusual Sources

Trends


SAMPLE

Public: Domestic Company – Company A (1/4)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate AddressCompany A, Street A

City B

State C

Tel No. 91 124 7239

Fax No. 91 124 4734111

Website www.company.co.in

Year of Incorporation 1767

Ticker Symbol 123456

Stock Exchange ABC

MermaidFish Feed

Category Products/Services

Prawn Feed Profeed, Titan, Manamei, Champ

Scampi Feed Classic, Scampro

DirectorPerson D

Name Designation

Person A MD, CEO

Person B. Director

Person C Director

Head Office

City B


SAMPLE

Key Ratios

Financial Summary

• The company earned a net profit of INR y1 mn in FY 20__, as compared to net loss of INR y2 mn in FY 20__

• The company reported total income of INR x1 mn in FY 20__, registering an increase of z per cent over FY 20__

• The company earned an operating margin of z1 per cent in FY 20__, an increase of a1 percentage points over FY 20__

• The company reported debt to equity ratio of z2 in FY 2011, an increase of a2 per cent over FY 20__

Key Financial Performance Indicators

Net Profit / Loss

Total Income

0

1,000

2,000

3,000

‐100

‐50

0

50

INR mn INR mn

20__

y1

x1

20__

y2

x2

20__

y3

x3

20__

y4

x4

Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) p

Total Enterprise Value (INR mn) q

EPS (INR) r

PE Ratio (Absolute) s

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating MarginNet MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on AssetsReturn on Fixed Assets

Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity RatioDebt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset TurnoverWorking Capital TurnoverCapital Employed Turnover

Improved Decline

Financial Snapshot



SAMPLE

Key Business Segments Key Geographic Segments

Business Highlights (1/2)


Description News

Overview

• Company A is primarily engaged in manufacturing business of prawn and fish feeds and supplies its products to the farmers of aqua culture

• The company is also involved in shrimp processing and has its presence in the shrimp ready‐to‐eat and ready‐to‐cook segment under the brand name ‘Prawn King’

• In addition to this, the company has 4 windmills with a capacity of 3.2 MW at Chitradurga, Karnataka for generating and selling electricity

Manufacturing Units

• The company has three prawn and a fish feed manufacturing units at Kovvur, Vemuluru in Andhra Pradesh and Pardi in Gujarat

• The plants have a production capacity of capacity of 90,000 MT per annum

• The shrimp processing and exports unit is situated at Gopalapuram in Andhra Pradesh

0%

50%

100%

20__

A4%

B4%C4%

20__

A3%

B3%C3%

20__

A2%

B2%C2%

20__

A1%

B1%C1%

0%

50%

100%R1%

20__

P4%

Q4%R4%

20__

P3%

Q3%R3%

20__

P2%

Q2%R2%

20__

P1%

Q1%

CBA RQP


SAMPLE

Business Highlights (2/2)


• In 2011‐12, the company plans to expand its feed manufacturing facility of its existing Kovvur plant

• For this, the company had already purchased a land of 4.94 acresFuture Plans

• During 2010‐11, the company went for capacity expansion of its shrimp feed manufacturing units Old machineries were replaced with new higher capacity machines and new godowns were set up for enhancing storage capacity

Production capacities of the plant increased to 1,10,000 MT per annum from 52,000 MT per annum

Expansions

• The company exports its processed shrimps to shrimps to the United States, Europe, Japan, Australia, and the Middle EastExport

• In the shrimp feed segment, the company witnessed an increase in sales by 125% and the processing and export division sales grew by 58.4%

• During the 1st quarter of 2012‐13, the overall growth rate of the company was around 20%Company Performance

Description News

Production Facilities• The processing plants are well equipped with plate freezers, blast freezer, IQF (Individual Quick Freezing), state‐of‐art cold storage facility, flake ice manufacturing facility and block ice manufacturing facility

Quality Standards

• The prawn and fish feed manufacturing units are ISO 9001:2008 certified and the shrimp processing and exports unit is ISO 22000: 2005 certified

• The processing plants are in accordance with the HACCP, USFDA, EU & BRC Global standards• In addition to this, the plants are ACC Certified for following best aquaculture practices in their manufacturing processes.

• The company also has in‐house laboratory for conducting special tests for detecting the presence of micro organisms and anti‐biotics in the final products to ensure that it is absolutely contamination free


Appendix

Ratio Calculations

Operating Margin (Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital (Net Income / Working Capital) *100

Return on Assets (Net Income / Total Assets)*100

Return on Fixed Assets (Net Income / Fixed Assets) *100

Operating Costs (% of Sales) (Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Ratio Calculations

Current RatioCurrent Assets / Current Liabilities

Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity Total Liabilities / Shareholders Equity

Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / Shareholders Equity


Sources of Information

Secondary Research

Print MediumLeading Newspapers

Journals / Magazines

Business Magazines

Electronic MediumCompany Websites

Government Websites / Resources

Online Magazines

Online Journals / Articles

Premium Databases

Social Networking Space

Primary Research

InterviewsLeading Industry Vendors

Industry Stakeholders

Industry Experts

Surveys Conducted in Social / Technology Focused Forums


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Animal Feed Market – India report is part of Netscribes’ Food and Beverage Series. For the complete market research report, contact us at:

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