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Convenience Store Market – India October 2014
Executive Summary Market
SAMPLE
Global convenience store market has been growing rapidly along with the rising income and improving lifestyle across the globe Organized convenience store market is growing at a rate of x1% in the country
Shopping Trends
Changing Shopping Trend in India Consumer Spending – Major Segments E-Grocery
Drivers & Challenges
Drivers Rising Income Levels and Consumerism Ease of Payment via Cards Changing Demographics and Lifestyle Growing Acceptance towards FDI in Retail
Government Participation
Challenges Large Geographic Spread and Lack of Logistics Support Regulatory Challenges Human Resource Constraints Customer Migration
FDI scenario in retail Single brand retailing in India Multi brand retailing in India Goods and Services Tax Key Players
Competitive Landscape
Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
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•Macroeconomic Indicators •Introduction •Global Outlook •Market Overview Indian Retail Industry Convenience Store Market
•Shopping Trends •Drivers & Challenges
•Real Estate Challenges •Government Participation •Competitive Landscape •Strategic Recommendations
•Appendix CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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…of the major players and rising number of convenience stores in various countries across the globe
SAMPLE
Convenience Store – Global Outlook (2/2)
Growth of Convenience Stores in US
x7
no. x2
x3
x4
x5
x6
2009
2010
2011
2012
2013
0
Types of Convenience Stores in UK (2013) %
x8
x9
x10
x11
x12
Forecourts
Multiples
Co-operatives
0 Unaffiliated Independents
Symbol Groups
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Convenience store market in India to witness strong growth owing to the rising demand for convenience shopping Convenience Store Market – Overview • Convenience stores in India is still at a nascent stage, providing huge untapped market potential for future growth
Organized Convenience Store Market INR bn
Currently, convenience stores market in India is approximately valued at INR z1 bn and is expected to grow at a CAGR of z2% to reach INR z3 bn in 2018
• Convenience stores cater to the basic needs of an Indian consumer
y6
y7
y1
y3
y2
y4
y5
0 2013
2014e
2015e
2016e
2017e
• They are located in both residential as well as commercial markets and often operate in conjunction with a service station
Convenience Store Success Factors
• Convenience stores have become the preferred shopping destinations for the Indian urban consumers, demanding for convenience, quality and service
Store Appearance
Food
Layout
Pricing
• However, convenience stores in India are only 75% as efficient as stores in the US in terms of display, accessibility of products and service
2018e
Success Factors
Service
Distribution
Promotion
Product Mix
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Needs, desires and wants of the Indian consumers contributing to the country’s growing retail sector Consumer Demands in Today’s Shopping Trend n2 n3
n8 n1
• Text • Text
n4 n5 n6 n7
m1
m4
m7
m2
m5
m8
m3
m6
m9
n9
SAMPLE CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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Drivers & Challenges – Summary
Challenges Large Geographic Spread and Lack of Logistics Support
Drivers
Regulatory Challenges
Rising Income Levels and Consumerism
Human Resource Constraints
Ease of Payment via Cards
Customer Migration
Changing Demographics and Lifestyle Growing Acceptance towards FDI in Retail
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants • Text
Impact Medium
Impact Medium
Bargaining Power of Suppliers • Text
Impact Low
Impact Medium
Competitive Rivalry
Bargaining Power of Buyers • Text
• Text
Impact High Threat of Substitutes • Text
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Competitive Benchmarking (2/5)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2012) (1/3) Operating Margin
% p1 0
p2
Net Margin
p3
p4
p6 p5 Mother Dairy Fruit and Vegetable Pvt. Ltd.
REI Six Ten Retail Ltd.
Reliance Retail Ltd.
• Player 1 recorded operating margin of-%, higher than both Player 2 and Player 3 which recorded operating margin of -% and -% respectively • Player 1 recorded net margin of %, higher than that of Player 2 which recorded net margin of -% but lower than that of Player 3 which recorded net margin of -%
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Public: Player 1 (1/5) Company Information
SAMPLE Offices and Centres – India
Corporate Address
Tel No. Website Year of Incorporation Ticker Symbol
Mumbai
Stock Exchange
Head Office
Products and Services Category
Products/Services
Products & Services
Convenience Store
Key People Name
Designation
P1
D1
P2
D2
P3
D3
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Public: Player 1 (2/5)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Revenue INR mn
Profit INR mn
Net Profit/Loss g2
g4
g1
g3
g8
g6
g7
g5
0
0 2011
2012
Financial Summary
2013
2014
• The company incurred a net profit of INR u1mn in FY 2014 and INR u2 mn in FY 2013 • The company reported total income of INR u3 mn in FY 2014, registering an increase of u4% over FY 2013 • The company earned an operating margin of u5% in FY 2014, an increase of u6 percentage points over FY 2013
• The company reported debt to current ratio of u7 in FY 2014, a decrease of u8% over FY 2013
Key Financial Performance Indicators Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Value (17/09/2014)
Particulars
y-o-y change (2014-13)
2014
2013
2012
2011
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)
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
CONVENIENCE STORE MARKET IN INDIA 2014.PPT
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SAMPLE
Public: Player 1 (3/5) Key Business Segments p10
Key Geographic Segments
p11
q7
p12
q8 p3
p2
p5 p6 p7
p8
q5
p9
q6
2011
2012
2013
p4
q1
p1
2014
2011
q2
q3
q4
2012
2013
2014
Business Highlights Description
Details
Overview
• Text • Text • Text
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Public: Player 1 – SWOT Analysis (5/5)
SAMPLE
• Text
• Text
S
W
O
T
• Text
• Text
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Private: Player 2 (1/5) Company Information
SAMPLE Offices and Centres – India
Registered Address
Tel No. Kolkata
Website Year of Incorporation
Head Office
Products and Services Category Services
Products/Services Convenience Store
Key People Name
Designation
P1
D1
P2
D2
P3
D3
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Private: Player 2 – Shareholding Pattern (2/5)
SAMPLE
Shareholders of the Company Name
S1
Ownership Structure No. of Shares held
s8
s9
N1 s7
S2
N2
S3
N3
S4
N4
S5
N5
Total
s6
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Private: Player 2 (3/5)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Profit / Loss
INR mn
Particulars
INR mn
y1
y2
y3
y4
y5
y6
y7 y8
0
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 2010
2011
2012
2013
Financial Summary
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• Company incurred a net loss of INR x1 mn in FY 2013, as compared to net loss of INR x2 mn in FY 2012
Liquidity Ratios
• It reported total income of INR x3 mn in FY 2013, registering a decrease of x4% over FY 2012
Leverage Ratios
• Earned an operating margin of x5% in FY 2013, a decrease of x5 percentage points over FY 2012 • The company reported a debt to equity ratio of x6 in FY 2013, a decrease of x7% 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
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Private: Player 2 (4/5) Business Highlights Description
Overview
SAMPLE News
• Text • Text
Financials
• Text
Recent Update
• Text • Text
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Private: Player 2 – SWOT Analysis (5/5)
SAMPLE
• Text
• Text
S
W
O
T
• Text
• Text
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