Vivek Dhume Director, Future Group

Changing IndiaChanging IndiaChallenges and OpportunitiesChallenges and Opportunities 1

Changing IndiaChanging IndiaChallenges and Opportunities in Challenges and Opportunities in International Food BusinessInternational Food Business

Vivek DhumeThe Future [email protected]


About Us

RETAIL

BRANDS

INFRASTRUCTURE


Retail


Geographical Presence

2009-10 2014-15


Building a Supply Chain Backbone

Shared Support Services-

Fashion

General Merchandise

Home

Foods

56 Warehouses8 million sq ft of space100 location coverage

WMS Driven

Sourcing, grading, packing and logistics

27 town networkSpecialized

Management

Top 7 City NetworkCollection Center

Consolidation CenterCutting and Packing

units


Building a Supply Chain Backbone

56 Warehouses

8 million sq ft of space

100 location coverage

WMS Driven

Sourcing, grading, packing and

logistics

27 town network

Specialized Management

Top 7 City Network

Collection Center

Consolidation Center

Cutting and Packing units

Fashion / Dry Goods

Commodity Foods

Fresh Produce


Brands


Infrastructure


Presentation Roadmap

• Knowing/Understanding India• Key Consumption Trends• Opportunities• Next Steps


1.3 billion people, 16.6% of World Population, Living in only 2.5% of the world land


In 29 states, 6 union territories,

4,000 cities and

6,50,000 villages.


Speaking 325 different languages (18 official).


Practicing 8 major religions. Celebrating over 72 festivals.


India Advantage


Knowing India

India At a Glance

Population 1.3 Billion

Consuming Class 250 – 300 Million

GDP Growth Rate 5.2 % (2015 Est.)

Polity Democracy

Food Patterns Diversified

Agriculture Core

Regulatory WTO Signatory

Food Market Developing


Understanding India

• Strong Economy– Resilient to the current crisis

• 200 Million Consumers!– Unified by aspiration

• Young population– Part of a global village

• Small Families– Open to change

• High disposable incomes – Willingness to spend

• Media Revolution– Part of a Global Village

• International Foods– Niche to Mainstream


CHANGE IN INCOME LEVEL


India One – 14%

The consuming class!


India Two – 60%

The serving class, largely for the consuming class.


India Three – The rest

Laborers, Agricultural workers, Sustenance occupation.


Food Industry in a Glance

• India’s Total Food Industry: US$ 258 Billion– Projected Size: US$ 900 Billion by 2020

• Processed Food Products: US$ 40 Billion

– Projected Size: US$ 300 Billion by 2020

• Average growth rate: 20% • World Ranking: 12th-largest food consumer

– Projected Ranking: 5th-largest consumer food market by 2025


Organized Retail Market Size


What Got You Here Won’t Get You There!!!- Marshall Goldsmith


The Times They Are A Changin’

Eating Habits

Retailers/SellingConsumers/Buying


Changes in Consumption

• Mineral Water • Instant Noodles• Pasta• Olive oil• Thai Food/Lebanese Food …• Pre Cooked Kebabs/Chicken Wings …• Pressure Cooked Cakes!• Apples in Summer


Changes in Consumption Mindset

• Food mostly eaten at home and eating out considered an excursion

• Availability of ‘Ready to Cook’ (RTC) and ‘Ready to Eat’ (RTE)

• Ready to Cook food still an occasional phenomenon

• ‘Mummy ka magic’ retained as this would define her position and importance at home

2005 2015• Manifold increase in eating out

frequency

• RTE/RTC but with “health”

• More experimental foods

• Fresh consumption increasing

• An emerging generation of Indian women that will have neither the necessary knowledge nor the time to prepare traditional meals on a regular basis

Source: Technopak Research


Changing Retail


Changing Retail


International Foods

• India is not self sufficient in food• India is not a bread/food/fruit basket to the

world• Imports are not focused on high value

gourmet foods


Key Food Imports


Overall Import Trend - Fats and Oils


Olive Oil Import Trend


Overall Import Trend – Vegetables (Including Lentils)


Overall Import Trend – Edible Fruits & Nuts


Fresh Fruit Import Trend


Dried Fruits & Nuts Import Trend


Processed Food Import Trend


The Success Mantra

• Import in Bulk but package and process locally

• Create “Bridges to Luxury”

• Be “Premium to Masses”


Integrated Food Strategy

Cold Storage

Research & Food Labs

Grocery

Fresh

FOOD PARK

Collection Units

DairyDistribution

Processing units

Transport

Sorting / Cutting & Packing unit


Mega Food Park

• World Class Infrastructure• Unique Conversion of Skills• Ready to Move in Facilities• Excellent catchment of raw material• Excellent connectivity• Retail back up


India Food ParkExcellent Location

• On National Highway 4 connecting Bangalore to Mumbai

• 100 kms from nearest airport

• 2 hours drive from Bangalore

• 15 hours drive from Mumbai

• 22 hours drive from Chennai sea port

• 22 Kms from nearest Railway Station


114 acres of Integrated Infrastructure Development

Perishable Staple

Utilities

Power

Admin

R&DLabs

Leasable Plots Leasable Plots

Leasable PlotsLeasabl

e PlotsWater

Leasable Plots

MSME Building

Amenities : 27 acresCore Facilities : 15 acresSupport : 06 acresLeasable/ MSME : 66 acres


Cold Storage +Ve Temp: 660 MT- Ve Temp : 900 MT

Efficient G/S, Washing (10 tph)IQF, Blast Chiller, Blast Freezer, Spiral freezer Pulping line (6 tph)Hi Care Cutting & packing (1 tph)Multi produce Ripening (400 MT)RTE Kitchen

Bulk and consumer packing of whole and cut F&VAseptic

Facilities for StorageSTORAGE

PROCESSING

PACKAGING


Facilities for Staples

Grain Storage Silo (20,000 MT)Finished Goods W/H (100,000 Sqft)Raw Material W/H (40,000 sqft)

STORAGE

Multi product cleaning sorting & packing plant (2tph)

PACKAGING

Flour Mill (150 tpd)Spice Mill (5 tpd)Dal Mill (40 tpd)

PROCESSING




(Actual Site Photograph)


















Open Opportunities – New Horizons


Category Growth - Dairy


Glimpses for Growth - Dairy


Category Growth - Meats


Glimpses for Growth


Category Growth – Processed Foods


Glimpses for Growth


Really – it does not matter

Are you the lion or the gazelle?