Animal Feed Market – India July 2014
Executive Summary Market
Drivers & Challenges
Trends
Animal feed industry is one of the growing sectors in India that has attracted a number of players Increasing livestock population and growth in user industries have also contributed to its rising popularity
Drivers
Challenges
Growth in Livestock Population Untapped Market Potential Increasing Domestic Consumption of Animal Based Food Products Growth in User Industries Favorable Demographics Growing Income and Consumption
Rise in Ingredient Prices Lower Impact on Native Breeds Unpredictable Climatic Conditions
Exhibitions and Events Usage of Information Technology (IT) Feed Production from Unusual Sources Bypass Protein Strategic Activities Replacement of Molasses
SAMPLE Key Players
Competitive Landscape
Company A
Company B
Company C
Company D
Company E
Company F
ANIMAL FEED MARKET IN INDIA 2014.PPT
2
•Macro-Economic Indicators •Introduction •Market Overview Global India
•Value Chain •Market Segmentation •Consumer Preference •Import & Export •Drivers & Challenges •Government Rules & Policies •Trends •Competitive Landscape •Strategic Recommendations •Appendix ANIMAL FEED MARKET IN INDIA 2014.PPT
3
Global feed industry continues to expand in volume and value in response to… Global Animal Feed Market – Overview (3/6) Regional Share of Feed Production – Pig (2013) A% E% F% D%
x1 B%
SAMPLE
Regional Share of Feed Production-Ruminant (2013) F% A%
x4
x2
x5
x3
x6
E%
B%
x1
x4
x2
x5
x3
x6
D% C%
C%
Regional Share of Feed Production – Poultry (2013)
F%
A%
E%
B%
x1
x4
x2
x5
x3
x6
Regional Share of Feed Production – Aqua (2013) A% D% C% E% F%
x1
x4
x2
x5
x3
x6
D% B% C%
ANIMAL FEED MARKET IN INDIA 2014.PPT
4
Commercial production and sale of manufactured feed products takes place in more than 130 countries and… Global Animal Feed Market – Overview (5/6) Total Number of Feed Mills (2013)
Total Tonnage (2013)
x2
y2 y3 x3
x6 x4
x1 a
y1
x5 b
c
d
e
y6
y4
f
y5
a
b
c
d
e
f
Average Tonnage per Region (2013) z5
z1
a
z2
b
z3
z4
c
d
z6
e
ANIMAL FEED MARKET IN INDIA 2014.PPT
f
5
…directly employs more than a quarter of a mn skilled workers, technicians, managers and professionals Global Animal Feed Market – Overview (6/6) Country Wise Feed Industry Value (mn Metric Tons – 2013) Country
Pig
Dairy
beef
calf
lay
broil
turkey
aqua
pets
horse
China
x
x
x
x
x
x
x
x
x
x
USA
x
x
x
x
x
x
x
x
x
x
Brazil
x
x
x
x
x
x
x
x
x
x
Mexico
x
x
x
Spain
x
x
x
India
x
x
x
Russia
x
x
Japan
x
Germany France
SAMPLE x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
ANIMAL FEED MARKET IN INDIA 2014.PPT
6
Although the industry is at a nascent phase, it is expected to witness… Indian Animal Feed Market – Overview (1/4)
SAMPLE
• xxx
Market Size & Growth mn tons A%
2013
2014e
2015e
2016e
2017e
ANIMAL FEED MARKET IN INDIA 2014.PPT
2018e
2019e
2020e 7
SAMPLE
…robust growth in the coming years Indian Animal Feed Market – Overview (2/4) Animal Feed Production Break – Up (2013)
Share in Global Animal Feed Production (2013)
Ruminant
x3 x1
India
a
Poultry
Others Countries
aqua
x2
b
Share in World Cattle Population (2013)
y1
Share in World Buffalo Population (2013)
India
India
Other Countries
Other Countries z1 z2
ye
ANIMAL FEED MARKET IN INDIA 2014.PPT
8
Poultry feed accounts for the largest share of the animal feed market Animal Feed Market Segmentation – Overview
SAMPLE
Animal Feed
Poultry
Cattle
Aqua
Others
Animal Feed Market Segmentation (2013) Z% X%
• xxx
Ruminant Poultry aqua
Y%
ANIMAL FEED MARKET IN INDIA 2014.PPT
9
Rapid growth of poultry industry will trigger the demand for poultry feed Indian Poultry Feed – Overview (2/3) Organized – Unorganized Break – Up (2013)
SAMPLE
Employment in Indian Poultry Industry (2013)
Organized
Poultry Feed
Unorganized
X%
A%
Others
B%
Y%
Share of Poultry Feed in Cost of production (2013)
Soya Production in India (2010 – 2013)
Poultry Feed Cost Other Costs
mn tons
M%
Z%
N% 2009-10
ANIMAL FEED MARKET IN INDIA 2014.PPT
2010-11
2011-12
2012-13 10
…implies huge scope of growth for the manufacturers within this industry in the coming years
SAMPLE
Indian Cattle Feed – Overview (2/2) Organized – Unorganized Break – Up (2013)
X%
Share of Cattle in Livestock Population of India (2013)
Organized
Cattle
Others
Unorganized A% B%
Y%
Share Of Feed Components Grasses and Grazing z4% z1%
z2%
Crop Residues
Cultivated Forages Concentrates
z3%
ANIMAL FEED MARKET IN INDIA 2014.PPT
11
Poultry Feed – India (1/2)
SAMPLE
Poultry Feed Preference
• xxx
• xxx
• xxx
• xxx
ANIMAL FEED MARKET IN INDIA 2014.PPT
12
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
*Note: BEP (Break-even point) ANIMAL FEED MARKET IN INDIA 2014.PPT
13
Public: Domestic Company – Company ABC (x/x) Company Information
Offices and Centres – India
Corporate Address Tel No.
Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Products and Services Category
Head Office Trichur
Products/Services
Key People Milk Products & Nutrition
Confectionery
Beverages
Name
Designation
SAMPLE ANIMAL FEED MARKET IN INDIA 2014.PPT
14
SAMPLE
Public: Domestic Company – Company ABC (x/x) Financial Snapshot Total Income
Key Ratios
Particulars
Net Profit/Loss
INR mn
INR mn
0
0 2010
2011
2012
2013
Financial Summary
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 x mn in FY 2013, as compared to net profit of INR y mn in FY 2012 • The company reported total income of INR a mn in FY 2013, registering an increase of b% over FY 2012 • The company earned an operating margin of m% in FY 2013, a decrease of n percentage points over FY 2012 • The company reported debt to equity ratio of c in FY 2013, a decrease of d% over FY 2012
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
Key Financial Performance Indicators Indicators
y-o-y change (2013-12)
Value (21/04/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
ANIMAL FEED MARKET IN INDIA 2014.PPT
Decline
15
Public: Domestic Company – Company ABC (x/x) Key Business Segments
Key Geographic Segments
Animal Feed
Dairy
Oil Cake Processing
Corporate
Outside India
India
150% 100%
X%
50%
Y%
0%
Z%
Y%
A%
-50% 2010
X%
X%
Z%
Y%
A% 2011
Z%
Y%
A% 2012
100%
A%
A%
A%
A%
50%
B%
B%
B%
B%
2010
2011
2012
2013
X%
Z% A%
2013
0%
Business Highlights Description
News
Overview
• xxx
SAMPLE ANIMAL FEED MARKET IN INDIA 2014.PPT
16
Public: Domestic Company – Company ABC (x/x) Business Highlights Description
News
Manufacturing Units
• xxx
Expansion
• xxx
Future Plans
• xxx
Awards & Recognition
• xxx
SAMPLE ANIMAL FEED MARKET IN INDIA 2014.PPT
17
Public: Domestic Company – Company ABC (x/x)
SAMPLE • xxx
• xxx
S
W
O
T
• xxx
• xxx
ANIMAL FEED MARKET IN INDIA 2014.PPT
18
Private: Domestic Company – Company ABC (x/x) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category
Erode
Products/Services
Key People
Cattle Feed
Name Poultry Feed
Others
Designation
SAMPLE ANIMAL FEED MARKET IN INDIA 2014.PPT
19
Private: Domestic Company – Company ABC (x/x) Shareholders of the Company as on 20/09/2013
Ownership Structure xxx
Name
No. of Shares held
A B C D
X%
E F G
SAMPLE
Ownership structure corresponds to Date of AGM: 30/09/2013
ANIMAL FEED MARKET IN INDIA 2014.PPT
20
SAMPLE
Private: Domestic Company – Company ABC (x/x) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
Particulars
INR mn
INR mn
0 0 2010
2011
2012
2013
y-o-y change (2013-12)
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 Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Financial Summary • The company incurred a net loss of INR x mn in FY 2013, as compared to net loss of INR y mn in FY 2012
Liquidity Ratios
• The company reported total income of INR a mn in FY 2013, registering an increase of b% over FY 2012
Leverage Ratios
• The company earned an operating margin of c% in FY 2013, an increase of d percentage points over FY 2012 • The company reported debt to equity ratio of m in FY 2013, an increase of n% 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
ANIMAL FEED MARKET IN INDIA 2014.PPT
Decline
21
Private: Domestic Company – Company ABC (x/x) Business Highlights Description
News
Overview
• xxx
Manufacturing Facility
• xxx
Production Capacity
• xxx
Network
• xxx
SAMPLE
ANIMAL FEED MARKET IN INDIA 2014.PPT
22
Private: Domestic Company – Company ABC (x/x)
SAMPLE • xxx
• xxx
S
W
O
T
• xxx
• xxx
ANIMAL FEED MARKET IN INDIA 2014.PPT
23
Thank you for the attention Animal Feed Market – India report is part of Research on India’s Retail and Services Series.
For more detailed information or customized research requirements please contact: Phone: E-Mail:
+91 22 4098 7600 info@netscribes.com
About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives. 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. 24