Agriculture and Food Industry – India September 2014
Executive Summary Market
Agriculture and food industry is one of the growing sectors in India that has attracted a number of players Increasing disposable income and emergence of processed food have contributed to its rising demand
Drivers
Drivers & Challenges
Trends
Challenges
Scope of Growth in Food Processing Sector Favorable Demographics Growing Income and Consumption Increase in Agricultural Exports
Lack of Cold Storage Facilities Inconsistency in State and Central Policies Pest and Disease Infestation
Usage of Information Technology Increasing Private Participation in Indian Agriculture Growing Organic Farming and Organic Food Sector
SAMPLE
Key Players
Competitive Landscape
Company A
Company B
Company C
Company D
Company E
Company F
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview •Market Segmentation Principal Crops Fruits and Vegetables Plantation Crops and Spices
•Segmental Analysis •Food Processing Industry Insights •Export and Import •Drivers & Challenges •Government Initiatives •Trends •Competitive Landscape •Strategic Recommendations •Appendix AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Falling share of agriculture and allied sector in GDP is an expected outcome… Indian Agriculture and Food Market – Overview (1/8) GDP of Agriculture and Allied Sectors INR mn X
0 2009-10
• xxx
2010-11
2011-12
2012-13
SAMPLE
Note: 2009-10 :first revised estimates, 2010-11: second revised estimates, 2011-12:third revised estimates, 2012-13: advance estimates AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Investment in irrigation, rural roads, power, telecommunication, marketing infrastructure, research… Indian Agriculture and Food Market – Overview (5/8) GCF in Agriculture and Allied Sectors INR mn x
0 2008-09
• xxx
2009-10
2010-11
2011-12
SAMPLE
Note: Gross Capital Formation in Agriculture & Allied Sectors at constant (2004-05) prices AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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…and extension services generally tend to result in high growth of the agricultural sector and reduction in poverty Indian Agriculture and Food Market – Overview (6/8) GCF in Agriculture and Allied Sectors as % of GDP from Agriculture and Allied Sectors % y
2008-09
• xxx
2009-10
2010-11
2011-12
SAMPLE
Note: Gross Capital Formation in Agriculture & Allied Sectors at constant (2004-05) prices AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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All India Area, Production and Yield of Major Crops – Rice Indian Agriculture and Food Market – Segmentation (1/17) Production of Rice
Mn tons x
0 2009-10
2010-11
Area
2011-12
2012-13
SAMPLE
Mn hectares
Yield
Kg/hectares y
2009-10
2013-14
2010-11
z
2011-12
2009-10
2010-11
2011-12
Note:2013-14 figure is the final estimate for rice, wheat, coarse grains, pulses, oilseeds and sugarcane AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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All India Area, Production and Yield of Major Crops – Wheat Indian Agriculture and Food Market – Segmentation (2/17) Production of Wheat
Mn tons
x
2009-10
2010-11
Area
Mn hectares
2011-12
2012-13
SAMPLE
y
2013-14
Yield
Kg/hectare z
0 2009-10
2010-11
2011-12
2009-10
2010-11
2011-12
Note:2013-14 figure is the final estimate for rice, wheat, coarse grains, pulses, oilseeds and sugarcane AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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All India Area, Production and Yield of Major Crops – Food grains Indian Agriculture and Food Market – Segmentation (5/17) Production of Food grains
Mn tons
x
2009-10
Area
Mn hectares
2010-11
2011-12
SAMPLE
Yield
Kg/hectare
y
z
0 2009-10
2010-11
2011-12
2009-10
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
2010-11
2011-12 9
All India Area, Production and Yield of Major Crops – Oilseeds Indian Agriculture and Food Market – Segmentation (6/17) Production of Oilseeds
Mn tons x
2009-10
2010-11
Area
Mn hectares
2009-10
2012-13
SAMPLE
2013-14
Yield
Kg/hectare
y
2010-11
2011-12
z
2011-12
2009-10
2010-11
2011-12
Note:2013-14 figure is the final estimate for rice, wheat, coarse grains, pulses, oilseeds and sugarcane AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Crop-wise National Production Targets Indian Agriculture and Food Market – Segmentation (10/17) Crop-wise National Production Targets for the Year 2014-15e – Kharif (Mn Tons)
SAMPLE Rice
Jowar
Bajra
Maize
Ragi
Smail Millets
Crop-wise National Production Targets for the Year 2014-15e – Rabi (Mn Tons)
Rice
Wheat
Jowar AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
Maize
Barley 11
Crop-wise National Production Targets Indian Agriculture and Food Market – Segmentation (11/17) Crop-wise National Production Targets for the Year 2014-15e – Kharif (Mn Tons)
SAMPLE Total Coarse Cereals
Total Pulses
Foodgrains
Total Oilseed
Crop-wise National Production Targets for the Year 2014-15e – Rabi (Mn Tons)
Total Coarse Cereals
Total Pulses
Foodgrains
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
Total Oilseed 12
State-wise and Crop-wise Production Targets Indian Agriculture and Food Market – Segmentation (12/17) State-wise and Crop-wise Production Targets of Pulses for the Year 2014-15e ( mn Tons ) States
Pigeon Pea Kharif
Moong Kharif
Rabi
Urd Total
Kharif
Rabi
Gram Total
Rabi
Other Other Pulses Kharif Rabi Pulses Pulses Kharif Rabi
Total
Andhra Pradesh Assam Bihar Chhattisgarh Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand
SAMPLE
Karnataka Kerala Madhya Pradesh Maharashtra AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Fruits and Vegetables Indian Agriculture and Food Market – Segmentation (1/5) Growth in Area, Production and Productivity of Fruits 2001-02
2011-12 y
z
x Area(mn.ha)
• xxx
Production(mn tons)
Productivity(mn tons/ha)
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Fruits and Vegetables
SAMPLE
Indian Agriculture and Food Market – Segmentation (2/5) Leading Fruit Growing States ( 20----)
Share of Fruits in Total Production ( 20-----)
Maharashtra
Banana
Andhra Pradesh
Mango
Gujarat
Citrus
Karnataka
Papaya
Uttar Pradesh
Guava
Tamil Nadu
Grapes
Bihar
Apples
Others
Others
Share of Fruits In Total Production of Horticulture Crops ( 20-----)
Share of Fruits In Total Area under Horticulture Crops ( 20-----)
Fruits
Fruits
Others
Others
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Fruits and Vegetables Indian Agriculture and Food Market – Segmentation (3/5) Growth in Area, Production and Productivity of Vegetables 2001-02
2011-12 y
z
x Area(mn.ha)
• xxx
Production(mn tons)
Productivity(mn tons/ha)
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Fruits and Vegetables Indian Agriculture and Food Market – Segmentation (4/5) Leading Vegetables Growing States (20-----)
• xxx
Share of Vegetables in Total Production (20-----)
West Bengal
Potato
Uttar Pradesh
Tomato
Bihar
Onion
Andhra Pradesh
Brinjal
Madhya Pradesh
Cabbage
Gujarat
Cauliflower
Tamil Nadu
Okra
Others
Others
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Fruits and Vegetables Indian Agriculture and Food Market – Segmentation (5/5) Per Capita Availability of Fruits and Vegetables (20---20--) Fruits
Vegetables
Grams per day
2001-02
• xxx
2004-05
2008-09
2011-12
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Plantation Crops and Spices Indian Agriculture and Food Market – Segmentation Leading Plantation Crops Growing States ( 20-----)
Leading Spices Growing States ( 20-----)
Tamil Nadu Karnataka
Andhra Pradesh
Kerala
Gujarat
Andhra Pradesh
Rajasthan
Others
Karnataka Madhya Pradesh Tamil Nadu Others
• xxx
SAMPLE
• xxx
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Increasing agricultural production will in turn drive industrial growth‌ Segmental Analysis (1/2) Segment
Description
Market Structure
Fruit and Vegetables
Fisheries
SAMPLE
Meat and Poultry
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Indian food processing industry is widely recognized as a 'sunrise industry' having huge potential… Food Processing – Segmentation Structure-wise Segmentation of Food Processing Industry ( 20-----)
• xxx
Organized Sector
Others
Unorganized Sector
Meat and Poultry Segment
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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…for uplifting agricultural economy, creation of large scale processed food manufacturing earnings… Food Processing – Share in Exports Food Processing Industry –Share in Exports INR mn
Commodity
2011-12
2012-13 2012-13
Growth %
Share (%) in Exports by FPI
Guargum Basmati Rice Marine Products Meat and Preparations Oil Meals (Oil, Oil Cakes etc.)
SAMPLE
Spices Rice (Other than Basmati) Wheat Total Food Processing Industry Exports of India AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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…and food chain facilities, and the resultant generation of employment and export
SAMPLE
Food Processing – FDI and Bank Credit
Inflow Pattern of FDI in Food Processing Units
INR mn x
2008-09
2009-10
2010-11
2011-12
2012-13
Bank Credit in Food Processing Industry
INR mn
z
y
Mar-10
Mar-11
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
Mar-12
23
Exports – Volume and Value (16/18) Export – Cereals (1/3) Basmati Rice Volume
Non Basmati Rice
Value
INR mn
Volume
Mn tons
0
INR mn
Mn tons
0 2011-2012
• xxx
Value
2012-2013
2013-2014
2011-2012
2012-2013
2013-2014
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Exports – Volume and Value (17/18) Export – Cereals (2/3) Wheat Volume
Maize
Value
INR mn
Volume
Mn tons
0
0 2011-2012
• xxx
2012-2013
2013-2014
Value
INR mn
Mn tons
0 2011-2012
2012-2013
2013-2014
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Inadequate storage facilities leads to huge amount of crop losses every year in India Increase in Agricultural Exports
Impact
• xxx
SAMPLE Share of Agricultural Exports in India’s Total Exports
% x
2010-11
2012-13
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Inadequate storage facilities leads to huge amount of crop losses every year in India Lack of Cold Storage Facilities
Impact
• xxx
SAMPLE Gap in Cold Storage Installed Capacity (2013)
Challenges Faced By India's Cold Storage Industry
Mn metric tons y
Actual
Expected AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Developmental initiatives provide a boost to the agriculture and food industry Government Initiatives (1/2) • xxx
• xxx
• xxx
SAMPLE
• xxx
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Private sector investments is expected to greatly benefit Indian farmers Increasing Private Participation in Indian Agriculture • xxx
Increasing investment to improve quality and composition of existing products
SAMPLE Benefits of Private Participation in Agriculture xxx xxx xxx
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants
Impact Low
• xxx
Impact High
Impact Medium
Bargaining Power of Suppliers • xxx
Impact Low
Competitive Rivalry
Bargaining Power of Buyers
• xxx
• xxx
Impact Low Threat of Substitutes • xxx
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Competitive Benchmarking (2/5) Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
%
Company A
• xxx
Net Margin
Company B
Company C
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Public: Domestic Company – ABC (1/5) Company Information
Offices and Centers – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Hyderabad
Ticker Symbol Stock Exchange
Head Office
Products and Services Category
Key People
Products/Services
Name
Designation
Products
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Public: Domestic Company – ABC (2/5) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
Particulars
INR mn
INR mn
2010
2011
2012
2013
Financial Summary • The company reported total income of INR mn in FY 2013, registering decrease of % over FY 2012 • The company earned an operating margin of in FY 2013, a decrease of percentage points over FY 2012 • The company reported debt to equity ratio of Y 2013, a decrease of over FY 2012
Key Financial Performance Indicators Indicators Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Abs)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios
• The company incurred a net profit of INR mn in FY 2013, as compared to net profit of INR mn in FY 2012
Market Capitalization (INR mn)
y-o-y change (2013-12)
Value (5/08/2014)
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
Decline
33
Public: Domestic Company – ABC (3/5) Key Business Segments Agricultural Products
Key Geographic Segments
Farm Sales
India
xxx
2010
2011
2012
2013
2013
Business Highlights (1/2) Description
News
Overview
• xxx
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Public: Domestic Company – ABC (4/5) Business Highlights (2/2) Description
News
Exports
• xxx
Retailing
• xxx
Marketing
• xxx
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Public: Domestic Company – ABC – SWOT Analysis (5/5)
SAMPLE • xxx
• xxx
• xxx
S
W
O
T • xxx
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Private: Domestic Company – ABC (1/5) Company Information
Offices and Centers – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category
Products/Services
Key People
Products
Name
Designation
SAMPLE AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
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Private: Domestic Company – ABC (2/5) Ownership Structure
Shareholders of the Company Name
No. of Shares held
Foreign holdings Bodies corporate
SAMPLE
50%
50%
Total
Ownership structure corresponds to Date of AGM: 5/08/2013
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Private: Domestic Company – ABC (3/5) Financial Snapshot Total Income
Key Ratios Particulars
Net Profit/Loss
INR mn
INR mn
y-o-y change 2013 (2013-12)
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
2010
2011
2012
2013
Financial Summary
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• The company incurred a net profit of INR mn in FY 2013, as compared to net profit of INR mn in FY 2012
Liquidity Ratios
• The company reported total income of INR mn in FY 2013, registering an increase of over FY 2012
Leverage Ratios
• The company earned an operating margin of in FY 2013, an increase of percentage points over FY 2012 • The company reported debt to equity ratio of in FY 2013, an increase of %over FY 2012
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
AGRICULTURE AND FOOD INDUSTRY IN INDIA 2014.PPT
Decline
39
Private: Domestic Company – ABC (4/5) Business Highlights Description
News
Overview
• xxx
Packing Facility
• xxx
Distribution Network
• xxx
Exports
• xxx
SAMPLE
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Private: Domestic Company – ABC – SWOT Analysis (5/5)
SAMPLE • xxx
• xxx
• xxx
S
W
O
T • xxx
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Strategic Recommendations (2/2) Improving Cold storage Infrastructure • xxx
Provide Impetus to Supply Chain Improvement
• xxx
SAMPLE
Contract Farming
• xxx
Develop Market Infrastructure
• xxx
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