Cost Food Services in India

8/4/2019 Cost Food Services in India

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Cost Foodservice in India

Industry Profile

Reference Code: 0102-2337Publication date: June 2007


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India - Cost Foodservice

Datamonitor (Published June 2007) Page 2

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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market Value

The Indian cost foodservice sector grew by 3.8% in 2006 to reach a value of $3.6

billion.

Market Value Forecast

In 2011, the Indian cost foodservice sector is forecast to have a value of $4.4 billion,

an increase of 20% since 2006.

Market Volume

The Indian cost foodservice sector grew by 0.4% in 2006 to reach a volume of

4,432.1 million transactions.

Market Volume Forecast

In 2011, the Indian cost foodservice sector is forecast to have a volume of 4,521.8

million transactions, an increase of 2% since 2006.

Market Segmentation I

The education segment is the most lucrative, generating 72% of the sector's

aggregate value.

Market Segmentation II

India acounts for 3.9% of the total sector value for Asia-Pacific.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

CHAPTER 1 Market Overview 7

1.1 Market Definition 7

1.2 Research Highlights 8

1.3 Market Analysis 9

CHAPTER 2

Market Value 10

CHAPTER 3 Market Volume 11

CHAPTER 4 Market Segmentation I 12

CHAPTER 5 Market Segmentation II 13

CHAPTER 6 Five Forces Analysis 14

6.1 Buyer Power 14

6.2 Supplier Power 15

6.3 New Entrants 16

6.4 Substitutes 17

6.5 Rivalry 18

CHAPTER 7 Leading Companies 19

7.1 Sodexho Alliance 19

7.2 Compass Group PLC 22

CHAPTER 8 Market Forecasts 24


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CONTENTS



8.1 Market Value Forecast 24

8.2 Market Volume Forecast 25

CHAPTER 9

Macroeconomic Indicators 26

CHAPTER 10 Appendix 28

10.1 Methodology 28

10.2 Industry Associations 29

10.3 Related Datamonitor Research 29


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CONTENTS



LIST OF TABLES

Table 1: India Cost Foodservice Sector Value: $ billion, 2002-2006...............................10

Table 2: India Cost Foodservice Sector Volume: Transactions million, 2002-2006.........11

Table 3: India Cost Foodservice Sector Segmentation I: % Share, by Value, 2006........12

Table 4: India Cost Foodservice Sector Segmentation II: % Share, by Value, 2006.......13

Table 5: Key Facts: Sodexho Alliance ............................................................................19

Table 6: Key Financials: Sodexho Alliance.....................................................................21

Table 7: Key Facts: Compass Group PLC......................................................................22

Table 8: Key Financials: Compass Group PLC...............................................................23

Table 9: India Cost Foodservice Sector Value Forecast: $ billion, 2006-2011................24

Table 10: India Cost Foodservice Sector Volume Forecast: Transactions million, 2006-

2011 .................................................................................................................25

Table 11: India Size of Population (million) , 2002-2006...................................................26

Table 12: India GDP (1995=100), 2002-2006...................................................................26

Table 13: India Inflation, 2002-2006 .................................................................................26

Table 14: India Exchange Rate, 2002-2006 .....................................................................27


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MARKET OVERVIEW



CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

Foodservice is defined as the sale of food and drinks for immediate consumption

either on the premises from which they were bought, or in designated eating areas

shared with other foodservice operators, or in the case of takeaways transactions,

freshly prepared food for immediate consumption. Datamonitor's definition excludes

sales through vending machines and is restricted to sales in specific foodservice

channels (please see channel definitions below).

Various channels have been grouped together in what is called the "Cost sector" -

this sector is characterised by the fact that a subsidy is paid (either directly or

indirectly) to one of the actors involved in the transaction, or where the final consumerpays for the food at its actual cost (as opposed to a price that adds some margin to its

basic cost). The cost sector includes the following channels - workplace locations,

education locations, hospitals and welfare & services locations.

All market values are given in Operator Buying Prices, that is the amount spent by

foodservice operators on the food and drink that they serve and not the amount the

consumers spend on food and drinks (Operator Selling Prices - OSPs) in these

channels. The difference is the mark up the foodservice operator adds in order to

cover their other costs and generate a profit. This therefore values the market in

terms of the amount of money for which food and drinks manufacturers are

competing.

Market volumes are classed as the total number of visits by individuals to foodservice

locations that involve the consumption of either food, or drink, or both. As such, if

several people visit one location at once and there is only one bill (e.g. a group dining

in a restaurant), the number of transactions is counted as being one for each person

in the group. Multiple purchases made during the same visit (e.g. a person buys

several drinks bought over a period of time in a bar) are counted as one transaction.

The purchase of drink with food in the same location in the same visit is also

considered as one transaction, not two.

The market is broken down in to four segments: Workplace; Education; Hospitals;

and Welfare & Services.

Asia-Pacific consists of Australia, China, India, Japan, Singapore, South Korea and

Taiwan.


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MARKET OVERVIEW



1.2 Research Highlights

The Indian cost foodservice sector generated total revenues of $3.6 billion in 2006,

this representing a compound annual growth rate (CAGR) of 3.5% for the period

spanning 2002-2006.

The education segment was the sector's most lucrative in 2006, generating total

revenues of $2.6 billion, equivalent to 72% of the sector's overall value.

The performance of the sector is forecast to accelerate, with an anticipated CAGR of

3.7% for the 2006-2011 period expected to drive the sector to a value of $4.4 billion

by the end of 2011.


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MARKET OVERVIEW



1.3 Market Analysis

The Indian cost foodservice sector generated total revenues of $3.6 billion in 2006,

this representing a compound annual growth rate (CAGR) of 3.5% for the period

spanning 2002-2006. In comparison, the Chinese and South Korean sectors grew

with CAGRs of 27% and 2.8% over the same period, to reach respective values of

$27.4 billion and $2.3 billion in 2006.

Sector consumption volumes increased with a CAGR of 0.4% between 2002-2006, to

reach a total of 4.4 billion transactions in 2006. The sector's volume is expected to

rise to 4.5 billion transactions by the end of 2011, this representing a CAGR of 0.4%

for the 2006-2011 period.

The education segment was the sector's most lucrative in 2006, generating total

revenues of $2.6 billion, equivalent to 72% of the sector's overall value. The welfare

and services segment contributed revenues of $506.9 million in 2006, equating to

13.9% of the sector's aggregate revenues.

The performance of the sector is forecast to accelerate, with an anticipated CAGR of

3.7% for the 2006-2011 period expected to drive the sector to a value of $4.4 billion

by the end of 2011. Comparatively, the Chinese and South Korean sectors will grow

with CAGRs of 11.9% and 2.2% respectively over the same period, to reach

respective values of $48 billion and $2.5 billion in 2011.


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MARKET VALUE



CHAPTER 2 MARKET VALUE

The Indian cost foodservice sector grew by 3.8% in 2006 to reach a value of $3.6

billion.

The compound annual growth rate of the sector in the period 2002-2006 was 3.5%.

Table 1: India Cost Foodservice Sector Value: $ billion, 2002-2006

Year $ billion INR billion % Growth2002 3.2 139.82003 3.3 143.9 2.90%2004 3.4 148.9 3.50%2005 3.5 154.6 3.80%2006 3.6 160.5 3.80%CAGR, 2002-2006: 3.5%

Source: Datamonitor D A T A M O N I T O R

Figure 1: India Cost Foodservice Sector Value: $ billion, 2002-2006


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2002 2003 2004 2005 2006

$billion

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

%Growth

$ billion % Growth


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MARKET VOLUME



CHAPTER 3 MARKET VOLUME

The Indian cost foodservice sector grew by 0.4% in 2006 to reach a volume of

4,432.1 million transactions.

The compound annual growth rate of the sector volume in the period 2002-2006 was

0.4%.

Table 2: India Cost Foodservice Sector Volume: Transactions million,

2002-2006

YearTransactions

million % Growth2002 4,363.3

2003 4,380.2 0.40%2004 4,397.3 0.40%2005 4,414.6 0.40%2006 4,432.1 0.40%CAGR, 2002-2006: 0.4%


Figure 2: India Cost Foodservice Sector Volume: Transactions billion,

2002-2006

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2002 2003 2004 2005 2006

Transactionsmillion

0.38%

0.38%

0.39%

0.39%

0.39%

0.39%

0.39%

0.40%

0.40%

%Growth

Transactions mil lion % Growth



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MARKET SEGMENTATION I



CHAPTER 4 MARKET SEGMENTATION I

The education segment is the most lucrative, generating 72% of the sector's

aggregate value.

The welfare & services segment accounts for a further 13.9%.

Table 3: India Cost Foodservice Sector Segmentation I: % Share, by

Value, 2006

Category % ShareEducation 72.00%Welfare & Services 13.90%Workplace 8.30%

Hospitals 5.80%Total 100.0%


Figure 3: India Cost Foodservice Sector Segmentation I: % Share, by

Value, 2006


Education

72.0%

Welfare &

Services

13.9%

Workplace

8.3%

Hospitals

5.8%


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MARKET SEGMENTATION II



CHAPTER 5 MARKET SEGMENTATION II

India acounts for 3.9% of the total sector value for Asia-Pacific.

Japan dominates the region's cost foodservice sector, generating 60.3% of its total

value.

Table 4: India Cost Foodservice Sector Segmentation II: % Share, by

Value, 2006

Geography % ShareJapan 60.30%China 29.30%Rest of Asia-Pacific 4.10%

India 3.90%South Korea 2.40%Total 100.0%


Figure 4: India Cost Foodservice Sector Segmentation II: % Share, by

Value, 2006


Japan

60.3%

China

29.3%

Rest of Asia-Pacific

4.1%

India

3.9%

South Korea

2.4%


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FIVE FORCES ANALYSIS



CHAPTER 6 FIVE FORCES ANALYSIS

6.1 Buyer Power

Figure 5: The Impact of Buyer Power on India Cost Foodservices Sector,

2006

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Porter's Five Forces Competitive Analysis Impact

BUYERP

OWER

Typical Size of Customers

Number of Customers

Switching Costs

Level of Product/Service Differentiation

Customer Loyalty

Cost of Product/Service Relative to Overall Buyer Costs

Level of Buyer Profitability

Likelihood of Buyers Backward Integrating

Likelihood of Industry Players Forward Integrating

Importance of Product/Service to Customer

Strong


This sector will be considered from the point of view of outsourced foodservice

players, such as Aramark and Sodexho. While final consumers will exert some pull-through, the buyers in this sector are the businesses and other organisations, such as

educational or healthcare facilities, that allocate cost foodservice contracts. These will

generally be relatively large and not very numerous, especially in comparison with the

consumer-oriented profit foodservice sector, enhancing buyer power. However,

players in this sector can differentiate themselves not only in areas such as food

quality, but also by offering additional services.

Forward integration of foodservice players into any of their clients' diverse operations

is generally unlikely, which strengthens buyer power. For some customer groups,

such as businesses, cost foodservice is not central to their activities, while others,

such as hospitals, would find it difficult to function without some kind of institutionalcatering since many of their own clients are incapacitated - although this service can

be provided in-house, and often is. Overall, buyer power is assessed as strong.


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6.2 Supplier Power

Figure 6: The Impact of Supplier Power on India Cost Foodservices

Sector, 2006

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5


SUPPLIERPOWER

Typical Size of Suppliers

Number of Suppliers

Switching Costs

Likelihood of Industry Players Backward Integrating

Importance of Industry to Supplier Revenues

Availability of Substitute Raw Materials

Importance of Raw Material Quality & Cost to industry

Level of Raw Material Differentiation

Likelihood of Suppliers Forward Integrating

TRANSPORTATION RAW MATERIALS TECHNOLOGY

Moderate

MAJOR COSTS:ENERGY LABOR R&D


The foodservice supply market in India is fragmented, with many small independents

distributing products to foodservice players. Foodservice companies are generally

low-margin businesses, and need to source good quality food at low prices. Risks

associated with supply chain disruption, or the inability of a competing supplier to

offer food of appropriate quality, increase switching costs. These factors together lead

to moderate supplier power.


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6.3 New Entrants

Figure 7: The Impact of New Entrants on India Cost Foodservices Sector,

2006

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5


N

EW

ENTRANTS

End-user switching Costs


Impact of Economies of Scale on Costs

Fixed Costs

Level of Government Regulation

Likelihood of Retaliation

Access to Distribution Channels

Access to Suppliers

Level of Proprietary Products & Knowledge in Industry

Existing Brand Strength

Rate of Market Growth

Moderate


The Indian sector has shown good revenue growth in recent years, which makes it

inviting for new entrants; indeed, foreign players such as Compass Group have

already begun to operate here. Foodservice players can enter India with low capital

outlay - as they will typically operate from their customers' premises, the main

expenditure is on catering equipment and similar items. On the other hand,foodservice is a low-margin business, and new entrants may face larger, established

incumbents, either third-party or in-house, that already benefit from scale economies.

A significant problem for new entrants to this sector is establishing a reliable supply

chain. This is especially difficult outside the major cities. Overall, the likelihood of new

entrants is assessed as moderate.


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6.4 Substitutes

Figure 8: The Impact of Substitutes on India Cost Foodservices Sector,

2006

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5


SUBSTITUTES

Switching Costs

Price of Substitutes

Benefits of Substitutes

Strong


Substitutes for outsourced cost foodservice vary from client to client. Business

customers may choose not to provide any onsite catering, with employees free to use

home-made food or profit foodservice outlets instead. Here, the price of substitutes

and switching costs are highly favorable to customers. Many institutional customers

are obliged to provide food for their own clients, but may opt to use in-house catering

rather than outsourcing to third-party cost foodservice operations. The costs and

benefits are more finely balanced in these cases. Overall, the threat of substitutes is

strong.


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6.5 Rivalry

Figure 9: The Impact of Rivalry on India Cost Foodservices Sector, 2006

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5


RIVALRY

Typical Size of Competitors

Number of Competitors

Switching Costs


Fixed Costs

Cost of Capacity Increases

Exit Barriers

Importance of Industry to its players

Similarity of Players to Each Other

Storage Costs

Rate of Market Growth

Moderate


The Indian cost foodservice sector is quite fragmented, with many small players,

although some larger companies, including Sodexho and Compass Group are also

present. For a typical company, foodservice is central to its operations, and it is easy

to increase capacity by taking on more staff, without the need for extensive training.

Respectable sector performance over the past five years weakens rivalry, as players

need not strive so hard to maintain their own revenues. Overall, rivalry is moderate.


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LEADING COMPANIES



CHAPTER 7 LEADING COMPANIES

7.1 Sodexho Alliance

Table 5: Key Facts: Sodexho Alliance

Address: 3 avenue Newton, 78180 Montigny-le-Bretonneux, FRATelephone: 33 1 30 85 75 00Fax: 33 1 30 43 09 58Website: www.sodexho.comFinancial Year-End: AugustTicker: SDXStock Exchange: New York

Source: Company Website D A T A M O N I T O R

Sodexho Alliance (Sodexho) is a leading global provider of food and management

services; and service vouchers and cards. It operates through 26,700 outlets in 76

countries spanning North America, Europe, Latin America and the rest of the world.

The company provides outsourced food and multi-services to businesses, public

agencies and institutions; long-term and short-term healthcare facilities; universities

and primary and secondary schools.

Sodexho operates through two business segments: food and management services;

and services, vouchers and cards.

The company's food and management services (FMS) include food and beverage

procurement and preparation, as well as the operation and maintenance of food

service and catering facilities, generally on a client's premises. It also provides

ancillary support and facility management services to clients, which, together with

food service, are referred to as 'multiservices'. Multiservices include physical plant

operations and maintenance, energy management, groundskeeping, housekeeping,

on-site laundry, custodial and janitorial services. The primary industry segments

serviced by FMS are classified as business and industry, healthcare, education and

remote sites.

The business and industry market comprises corporate customers to whom Sodexho

provides with food services, as well as vending, reception, mailroom, cleaning and

facilities maintenance. The company also provides a range of executive dining

services and the management of conference centers and private clubs for its

corporate clients, as well as food service and custodial services, maintenance,

transportation, professional training and rehabilitation services to facilities in locations

outside of North America.


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LEADING COMPANIES



In the healthcare market, Sodexho's FMS business provides catering services,

vending, meal delivery, patient transport, room upkeep, cleaning, grounds keeping,

and laundry. The institutions in this segment include hospitals, clinics, nursing homes,

and retirement and care centers around the world. Sodexho has sub-segmented the

healthcare market into long-term care facilities, primarily for seniors, and acute care

facilities, providing services to hospitals and outpatient clinics.

The education sector of the FMS business provides food and management services

to educational institutions ranging from nursery schools to universities.

The company's remote sites' clients are oil and gas, construction and mining

businesses, to which the company offers a range of food, hotel, cleaning, technical

maintenance, security, groundskeeping, medical surveillance and leisure services, as

well as the management of on site clubs and retail outlets.

Sodexho's service vouchers and cards business primarily manages the provision of

paper and debit-card vouchers to clients' employees for food, products and services

and the provision of various welfare benefits from government clients to their

constituents. The service vouchers and cards business currently comprises three

categories of services: daily life, motivation and assistance. Sodexho's vouchers and

cards are used to purchase items such as groceries, clothing and school books. This

segment has operations in 27 countries, mainly in Europe and Latin America, and

caters to nearly 14 million people.


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LEADING COMPANIES



Key Metrics

Table 6: Key Financials: Sodexho Alliance

Metric 2002 2003 2004 2005 2006

Revenues 15,765.0 14,608.8 14,367.5 14,616.3 15,997.5Net Income 228.8 202.5 228.8 265.0 403.8

Profit Margin 1.5% 1.4% 1.6% 1.8% 2.5%

Total Assets 10,680.0 10,135.0 9,597.5 9,940.0 9,597.5Total Liabil ities 7,467.5 7,130.0 7,147.5 7,342.5 7,676.3

Employees 385,141 308,385 312,975 324,446 332,096

Source: Company Filings D A T A M O N I T O R

Figure 10: Revenues & Profitability: Sodexho Alliance

02,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2002 2003 2004 2005 2006

Year

US$Millions

0.0%0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

ProfitMargin(%)

Revenues Net Income Profit Margin



22/29

LEADING COMPANIES



7.2 Compass Group PLC

Table 7: Key Facts: Compass Group PLC

Address:Compass House, Guildford Street, Chertsey, Surrey,KT16 9BQ, GBR

Telephone: 44 1932 573 000Fax: 44 1932 573 956Website: www.compass-group.comFinancial Year-End: SeptemberTicker: CPGStock Exchange: London

Source: Company Website D A T A M O N I T O R

Compass is a food catering and hospitality organization. The group provides

foodservice for customers at offices, factories, railway stations, airports, universities,schools, healthcare institutions, offshore and remote sites, retail stores and shopping

malls. The group has operations in 90 countries worldwide spanning North America,

Europe and Asia.

The group generates revenues through six business divisions: business and industry,

travel concessions, healthcare, education, sports and leisure, vending and defense,

offshore and remote site business.

Eurest, the group's subsidiary, operates the business and industry division. It

provides food service to customers at their workplace including cleaning, grounds

maintenance, reception, security, switchboard, customer helpdesk, mailroom

services, retail units and partnership purchasing. Eurest's clients are local, national

and international organizations as well as state and regional governments.

Morrison and Medirest are the group's subsidiaries in the healthcare division. They

provide food, nutrition and dining services to the healthcare and senior citizens' food

markets across the world. Crothall, a sister company which specializes in providing

facilities management services to the healthcare sector, works alongside with

Morrison in US.

The group's subsidiaries, Scolarest and Chartwells are international companies in the

education market. They meet the food and nutritional needs of students, from pre-

school infants, through primary and secondary school to higher education.

All Leisure, Levy Restaurants and a number of other specialist companies of the

group provide catering for sporting, cultural and leisure venues. Restaurant

Associates, a subsidiary of the company, provides fine dining facilities, often in

association with international chefs such as Albert Roux, for boardrooms, hospitality

suites and at major social events.


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LEADING COMPANIES



Through its subsidiaries, Canteen Vending and Selecta, Compass provides vending

services to clients across the US and Europe.

ESS Support Services Worldwide (ESS), a subsidiary of Compass, is a provider of

integrated support services in the world to clients in the defense, offshore and remote

site sectors, providing support services to clients in over 50 countries. ESS provides

services such as the design and build of camp structures, and operational support in

catering, housekeeping, technical services and logistics.

Key Metrics

Table 8: Key Financials: Compass Group PLC

Metric 2002 2003 2004 2005 2006

Revenues 18,322.5 20,763.9 21,658.0 18,532.2 19,897.3

Net Income 448.9 395.6 401.1 384.5 542.7Profit Margin 2.5% 1.9% 1.9% 2.1% 2.7%

Total Assets 18,053.9 15,848.0 15,561.0 15,816.7 13,404.7

Total Liabilities 12,863.8 11,103.1 10,994.6 11,625.6 9,149.3Employees 392,352 405,258 402,375 410,074 406,924

Source: Company Filings D A T A M O N I T O R

Figure 11: Revenues & Profitability: Compass Group PLC

0

5,000

10,000

15,000

20,000

25,000

2002 2003 2004 2005 2006Year

US$Millions

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

ProfitMargin(%)

Revenues Net Income Profit Margin



24/29

MARKET FORECASTS



CHAPTER 8 MARKET FORECASTS

8.1 Market Value Forecast

In 2011, the Indian cost foodservice sector is forecast to have a value of $4.4 billion,

an increase of 20% since 2006.

The compound annual growth rate of the sector in the period 2006-2011 is predicted

to be 3.7%.

Table 9: India Cost Foodservice Sector Value Forecast: $ billion, 2006-

2011

Year $ billion INR billion % Growth2006 3.6 160.5 3.80%2007 3.8 166.8 4.00%2008 3.9 173.2 3.80%2009 4.1 179.6 3.70%2010 4.2 186.0 3.60%2011 4.4 192.5 3.50%CAGR, 2006-2011: 3.7%


Figure 12: India Cost Foodservice Sector Value Forecast: $ billion, 2006-

2011


3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

2006 2007 2008 2009 2010 2011

$billion

3.2%

3.3%

3.4%3.5%

3.6%

3.7%

3.8%

3.9%

4.0%

4.1%

%Growth

$ billion % Growth


25/29

MARKET FORECASTS



8.2 Market Volume Forecast

In 2011, the Indian cost foodservice sector is forecast to have a volume of 4,521.8

million transactions, an increase of 2% since 2006.

The compound annual growth rate of the sector volume in the period 2006-2011 is

predicted to be 0.4%.

Table 10: India Cost Foodservice Sector Volume Forecast: Transactions

million, 2006-2011

YearTransactions

million % Growth2006 4,432.1 0.40%2007 4,450.0 0.40%2008 4,467.3 0.40%

2009 4,485.8 0.40%2010 4,503.8 0.40%2011 4,521.8 0.40%CAGR, 2006-2011: 0.4%


Figure 13: India Cost Foodservice Sector Volume Forecast: Transactions

million, 2006-2011

4,380

4,400

4,420

4,440

4,460

4,480

4,500

4,520

4,540

2006 2007 2008 2009 2010 2011

Transactionsmillion

0.39%

0.39%

0.40%

0.40%

0.40%

0.40%

0.40%

0.41%

%Growth

Transactions mil lion % Growth



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MACROECONOMIC INDICATORS



CHAPTER 9 MACROECONOMIC INDICATORS

Table 11: India Size of Population (million) , 2002-2006

Year Population (million) % Growth2002 1034.22003 1049.7 1.50%2004 1065.1 1.50%2005 1080.3 1.40%2006 1095.4 1.40%


Table 12: India GDP (1995=100), 2002-2006

Year 1995=100 % Growth2002 146.52003 157.3 7.40%2004 167.9 6.70%2005 179.2 6.70%2006 190.2 6.20%


Table 13: India Inflation, 2002-2006

Year Inflation Rate (%) % Growth2002 2.82003 3.8 36.10%2004 4.4 14.50%2005 5.1 16.10%2006 5.9 16.20%



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MACROECONOMIC INDICATORS



Table 14: India Exchange Rate, 2002-2006

YearExchange Rate

($/INR)

2002 0.020542003 0.021432004 0.022062005 0.022672006 0.02267



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APPENDIX



CHAPTER 10 APPENDIX

10.1 Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all

aggregated, analyzed, cross-checked and presented in a consistent and accessible

style.

Review of in-house databases Created using 250,000+ industry interviews and

consumer surveys and supported by analysis from industry experts using highly

complex modeling & forecasting tools, Datamonitors in-house databases provide the

foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news,analyst commentary, company profiles and macroeconomic & demographic

information, which enable our researchers to build an accurate market overview

Definitions Market definitions are standardized to allow comparison from country to

country. The parameters of each definition are carefully reviewed at the start of the

research process to ensure they match the requirements of both the market and our

clients

Extensive secondary research activities ensure we are always fully up-to-date with

the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources,

including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools Datamonitor has developed powerful tools that

allow quantitative and qualitative data to be combined with related macroeconomicand demographic drivers to create market models and forecasts, which can then be

refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused,

accurate and up-to-date


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APPENDIX

10.2 Industry Associations

Federation of Hotel & Restaurant Associations of IndiaB-82, 8th Floor, Himalaya House, 23,Kasturba Gandhi Marg, New Delhi-110001,India

Tel: 91 11 2331 8781Fax: 91 11 2332 2645http://www.fhrai.com/

10.3 Related Datamonitor Research

Datamonitor Industry Profiles

Global Cost Foodservice

Cost Foodservice in Europe

Cost Foodservice in the United States

Cost Foodservice in Asia-Pacific

Cost Foodservice in Taiwan

Cost Foodservice in South Korea

Cost Foodservice in Australia

Cost Foodservice in Japan

Cost Foodservice in China

Cost Foodservice in Belgium

Cost Foodservice in Russia

Documents

Cost Food Services in India