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For the complete report, get in touch with us at : [email protected] The Ready to Eat Market in India is showing remarkable growth owing to the growing income & consumption levels of the Indian consumers. In addition to this, rapid urbanization is also augmenting the demand for ready to eat products. Urban people suffer from time crunch due to their busy work schedules and this is leading to increased dependence on ready to eat foods. This is further aided with the penetration and availability of a wide variety of ready to eat products in different packaging formats at various retail points. All these factors are indicating towards the bright future of the Indian ready to eat market in the coming years. The report provides a snapshot of the ready to eat market. It begins with an overview of the major macro economic indicators which highlights the present economic scenario prevalent in India. It is followed by the introduction section which segregates the overall food processing industry into its sub segments, one of which is the packaged foods segment and ready to eat is one of the sub segments of this group. It then moves into the market overview section, which provides an overview of the Indian ready to eat market with details regarding its current market size and growth in the coming years. Segmental share of the market in terms of organized and unorganized sector is also provided. In addition to this, names of major players of RTE market has been mentioned along with the share held by the market leader. After this, the broad classification of the end user segments of ready to eat foods has been discussed. The next section elaborates on the value chain analysis of the sector.
Citation preview
Ready To Eat Market IndiaReady To Eat Market – India
April 2013
SAMPLE Executive Summary
Market
Indian ready to eat market was valued at INR xx mn in 20__ and is estimated to reach INR yy mn by 20__With changing consumer behavior due to various factors such as increasing income levels and hectic lifestyle these products are gaining popularity amongst themhectic lifestyle, these products are gaining popularity amongst them
Drivers—Growing Income and ConsumptionR id U b i ti
Challenges—Poor Supply Chain and Distribution Facility
Drivers & Challenges
—Rapid Urbanization—Increasing Working Women Population—Convenience Factor—Growing Retail Market—Marketing Campaigns
Distribution Facility—Consumer Behavior and Perception
—Rise in Packaging Costs—Health Concerns
—Marketing Campaigns
Exhibitions and Events High Focus on ExportAdaptation of New Technologies
Trends
Gaining Special Attention in Retail Format StoresRetailers Going for Private Label RTE Meals Launching Innovative and Region Specific Products
CompetitionMajor Players
Adaptation of New Technologies Innovative Promotional Techniques
Launching Innovative and Region Specific Products Frozen RTE Products Gaining Popularity
2READY TO EAT MARKET IN INDIA 2013.PPT
CompetitionCompany A Company B. Company C
SAMPLE •Macro‐Economic Indicators
•Introduction
•Market Overview•Market Overview
•Market Segmentation
•Consumer Insightsg
•Import & Export
•Drivers & Challenges
•Government Rules & Policies
•Government Participation
•Trends•Trends
•Competitive Landscape
•Strategic Recommendations
3READY TO EAT MARKET IN INDIA 2013.PPT
g
•Appendix
SAMPLE Macro Economic Indicators (1/3)
INR tn
14b4c4b3
a2a1
GDP at Factor Cost: Quarterly
13
12
11
d4c3
d3
a2b2
c2
d2
a1b1
c1
d1
10
Q4Q3Q2Q12012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0 8
1.0
%
e3e1
0.2
0.4
0.6
0.8
e5e4e2
4
0.0
Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012Sep 2012 ‐ Oct 2012Aug 2012 ‐ Sep 2012Jul 2012‐ Aug 2012
READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE Ready to eat food is an emerging market that serves the convenience factor of consumers
Ready To Eat Packaged Food
•Ready to Eat (RTE) can be defined as food products that constitute complete meals, require minimal processing, y ( ) p p , q p g,if any, typically requiring re‐heating to desired temperature or addition of water
Food Processing – Classification
A Dairy C Staples Beverages E
bb cc Ready to Eat ddaa ee
5READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE The Indian ready to eat market is at its nascent stage and is expected to witness remarkable growth…
Indian Market – Overview (1/3)
• Ready to Eat (RTE) foods were introduced in India originally in 1987 but the concept failed that time• Ready to Eat (RTE) foods were introduced in India originally in 1987, but, the concept failed that time
• It has recently started gaining popularity amongst the Indian consumers due to various factors such as increasing income levels and hectic lifestyle among others
• In comparison to domestic market, demand for Indian RTE food products is more in the global market and players earn a significant share of their revenue via exportsplayers earn a significant share of their revenue via exports
•During 20__, Indian ready to eat market was valued around INR xx mn
Market Si e & Gro thMarket Size & Growth
4,000
5,000
INR mn
X%
h
g
1 000
2,000
3,000
4,000 X%f
ed
cba
6READY TO EAT MARKET IN INDIA 2013.PPT
0
1,000
20__20__20__20__20__20__20__20__
SAMPLE …in the coming years with increased consumption amongst consumers
Indian Market – Overview (2/3)
• Major players of this segment are A, B, C, D among others• xx
Major players of this segment are A, B, C, D among others• A is the market leader in this segment holding ~y% market share
Market Segmentation (20__)
x1
Major Player’s Share (20__)
y1 y2
x2
7READY TO EAT MARKET IN INDIA 2013.PPT
Unorganized SectorOrganized Sector BA
SAMPLE RTE products are broadly classified into two segments
Market Segmentation (1/4)
RTE products are often termed as ‘Convenience Food’ since they are positioned as ‘value for money’ products that solve the issue of time‐constraints faced by
urban consumers due to their hectic lifestyle
Segmental Shares (20__)
Classification of RTE ProductsZ1
Shelf Stable Products Frozen Products
Z2
8READY TO EAT MARKET IN INDIA 2013.PPT
*Note: On the basis of products that are available in the market
YX
Frozen RTE products are gradually witnessing surge in its demand
Market Segmentation – Frozen RTE Products (3/4)
Frozen RTE Products
• Frozen RTE foods refer to those processed foods that need refrigeration in order to maintain nutritional value and taste
• xxa
• xx
• xx
b Export
Domestic
Share of Frozen RTE
9READY TO EAT MARKET IN INDIA 2013.PPT
S a e o o eConsumption
SAMPLE Consumer Insights on RTE Products (1/8)
Sample Size 100Survey Duration &
Period3 Weeks – February 2012
Sample SourcesSocial Media Websites and
Other Related ForumsQuantitative
Representation UsedPercentage
Gender Wise Age Wise (in years) Employment and Marital Status Wise
Profile of Respondents
A2B1
C3
A1
B3
B2B1
C4
C2C1
Employed and Single
Student
10READY TO EAT MARKET IN INDIA 2013.PPT
FemaleMale 35‐4425‐3418‐24
Not Employed
Employed and Married
p y g
SAMPLE Consumer Insights on RTE Products (2/8)
• Survey on RTE products was conducted on social media sites and other related forums•Overall survey has been kept close‐ended to capture specific information according to requirements
• The survey has been conducted amongst a group of general consumers heading from major• The survey has been conducted amongst a group of general consumers heading from major Indian cities including Mumbai, Delhi, Kolkata, Pune, Hyderabad, Bangalore among others
RTE Consumption Share
Q: Do you consume Ready to Eat (RTE) products?
Options1) Yes
Q: Do you consume Ready to Eat (RTE) products? Y
1) Yes2) No
X
11READY TO EAT MARKET IN INDIA 2013.PPT
NoYes
SAMPLE Import of Major Types of RTE Products (1/2)
Cereal Based Ready to Eat
2,000
‘000 KgINR mn
300 C
ValueVolumefde
C
B
A
Major Importing Nations – Value Wise (2011)
500
1,000
1,500
2,000300
200
100 DR
Q
B
P
A
a
bc
OTHERS
E
D
C
Meat Based Ready to Eat
0020__
S
20__20__20__
P a
Major Importing Nations – Value Wise (2011)
k
jg
hi
T
S
R
Q
P
1 000
1,500
‘000 KgINR mn
100
80
G
F
E
ValueVolume
f
OTHERS
T
0
500
1,00060
40
20
020
W
H
20
V
20
U
20
T
12READY TO EAT MARKET IN INDIA 2013.PPT
Note: HS Code 19019090 (Frozen and processed RTE preparations of flour meal, starch and malt extract ), HS Code 160100 (Sausages and similar products prepared from meat)
20__20__20__20__
SAMPLE Drivers & Challenges – Summary
Challenges
Poor Supply Chain and DistributionDrivers
Growing Income and Consumption
Poor Supply Chain and Distribution Facility
Deficit in Power Supply
Rapid Urbanization
Increasing Working Women Population
Consumer Behavior and Perception
Rise in Packaging Costs
Convenience Factor
Growing Retail Market
Health Concerns
Marketing Campaigns
13READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE Trends – Summary
Exhibitions and xx
High Focus on yyHigh Focus on yy
Adaptation of New Technologies
`Key TrendsInnovative Promotional Techniques
Gaining Special Attention in zz
Retailers Going for xx RTE Meals
Launching Innovative and bb
14READY TO EAT MARKET IN INDIA 2013.PPT
zz Products Gaining Popularity
SAMPLE Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2012)
Company A Company B Company C Company D Company E
Market Capitalization (INR mn) xx xx xx xx Xx
Share Price (INR) xx xx xx xx xx
EV/EBITDA (x) xx xx xx xx xx
/EV/Revenue (x) xx xx xx xx xx
PE Ratio xx xx xx xx xx
15READY TO EAT MARKET IN INDIA 2013.PPT
Note: Top 5 Public companies based on the Market Capitalization; Market Capitalization and Share Price are as of 8/02/2013 and PE ratio is as of 1/03/2013
SAMPLE Competitive Benchmarking (2/5)
Key Ratios of Top 3 Companies – Operational Basis (FY 2011) (1/3)
40
% Net MarginOperating Margin
2 49
11.04
30.39
7.30
21.73
10
20
30
40
2.49 1.410
CompanyCCompany BCompany A
• xx
16READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE Major Public Companies ‐ Summary
10,000
Net Profit/Loss
Size of the Bubble represents Market Capitalization in INR mn
5,000
m3
0 m4m2
m3
m1
‐10,000
‐5,000
7,0006,0005,0004,0003,0002,0001,0000
Total income
15,00014,00013,00012,00011,00010,0009,0008,000
Player DPlayer CPlayer BPlayer A
17READY TO EAT MARKET IN INDIA 2013.PPT
Note: All figures are in INR mn and are based on the latest financials available ie 2012 and ITC Ltd. has not been included as major share of its revenue comes from other non‐food segments
yyyy
SAMPLE Public: Domestic Company – Player A (1/5)
Company Information Offices and Centres – India
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Products and Services
Ticker Symbol xx
Stock Exchange xxHead OfficeCity A
Key People
Products and Services
N D i ti
Category Products/Services
RTE Products xx Name DesignationRTE Products xx
Other Food Products xx
18READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE i i l S h K i
Public: Domestic Company – Player A (2/5)
Financial Snapshot Key Ratios
Particulars y‐o‐y change (2012‐11)
2012 2011 2010 2009
Profitability RatiosOperating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%
Net Profit/LossTotal Income
1500
2000 150INR mn INR mn
dc
ba
Net Margin ‐6.73 4.02% 10.75% 12.08% 7.61%
Profit Before Tax Margin ‐5.22 6.52% 11.74% 15.66% 11.00%
Return on Equity ‐7.25 5.51% 12.76% 13.22% 9.02%
Return on Capital Employed ‐2.22 8.50% 10.73% 12.11% 16.70%
Return on Working Capital ‐7.92 20.82% 28.74% 28.25% 56.05%
Return on Assets ‐1.89 6.67% 8.56% 10.77% 14.08%
0
500
1000
1500
0
50
100
2012
D
2011
C
2010
B
2009
a
A
Financial Summary • The company incurred a net profit of INR 63.7 mn in FY 2012, as compared to net profit of INR 142.4 mn in FY 2011
• The company reported total income of INR 1585.4 mn in FY 2012, registering an increase of 19.7% over FY 2011
Return on Fixed Assets ‐4.90 26.02% 30.92% 33.44% 41.15%
Cost RatiosOperating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70%
Administration costs (% of Sales)
5.78 33.11% 27.33% 22.91% 25.64%
Interest costs (% of Sales) ‐0.24 0.82% 1.06% 1.21% 1.74%registering an increase of 19.7% over FY 2011
• The company earned an operating margin of 7.37% in FY 2012, a decrease of 3.31 percentage points over FY 2011
• The company reported debt to equity ratio of 0.32 in FY 2012, a decrease of 7.22% over FY 2011
Interest costs (% of Sales) % % % %
Liquidity RatiosCurrent Ratio 0.43% 2.49 2.48 4.42 2.60
Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09
Leverage RatiosDebt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02
b i l iKey Financial Performance Indicators
Indicators Value (22/02/2012)Market Capitalization (INR mn) XXTotal Enterprise Value (INR mn) XXEPS (INR)
Debt to Capital Ratio 5.46% 0.24 0.23 0.01 0.02
Interest Coverage Ratio ‐12.08% 9.10 10.35 10.14 8.78
Efficiency RatiosFixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69
Asset Turnover 14.00% 0.89 0.78 0.88 0.92
Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26
19READY TO EAT MARKET IN INDIA 2013.PPT
EPS (INR) XXPE Ratio (Abs) XX
Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66
Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13
Improved Decline
SAMPLE Public: Domestic Company – Player A (3/5)
Key Business Segments Key Geographic Segments
ExportsIndiaProcessed and Preserved FoodsTraded Goods
0%
50%
100%
FED
C
B
A
0%
50%
100%
TR
S
P
Q
U
0%2012201120102009
0%201120102009 2012
Business Highlights
Description News
Overview •XX
20READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A (4/5)
Description News
Business Highlights
Global Presence • XX
Quality Assurance • XXQ y XX
E i XXExpansions • XX
21READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A – SWOT Analysis (5/5)
• XX • XX
S W
TO
• XX• XX
22READY TO EAT MARKET IN INDIA 2013.PPT
SAMPLE Strategic Recommendations (1/2)
A B
•XX •XX
C
•XX
23READY TO EAT MARKET IN INDIA 2013.PPT
Appendix
Ratio Calculations
Operating Margin (Operating Income/Revenues)*100
Ratio Calculations
Current RatioCurrent Assets / Current Liabilities
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin (Income Before Tax / Revenues *100
(N I / Sh h ld
Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity Total Liabilities / Shareholders E it
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
q yEquity
Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Return on Working Capital (EBIT / Working Capital) *100
Return on Assets (EBIT / Total Assets)*100
Return on Fixed Assets (EBIT / Fixed Assets) *100
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Operating Costs (% of Sales) (Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Sales / (Shareholders Equity +
24READY TO EAT MARKET IN INDIA 2013.PPT
Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover Sales / (Shareholders Equity + Total Debt)
Sources of Information
Secondary Research
Print MediumLeading Newspapers
Primary Research
InterviewsLeading Industry VendorsLeading Newspapers
Journals / Magazines
Business Magazines
Electronic Medium
Leading Industry Vendors
Industry Stakeholders
Industry Experts
Surveys Conducted in Social / Technology Focused Forums
Company Websites
Government Websites / Resources
Online Magazines
Online Journals / Articles
Forums
/
Premium Databases
Social Networking Space
25READY TO EAT MARKET IN INDIA 2013.PPT
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26READY TO EAT MARKET IN INDIA 2013.PPT
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.