Market Research Reports : Dry fruit market India 2013 by Netscribes, Inc.

Dry Fruit Market – India February 2013

Executive Summary Market

 Indian dry fruit market is valued at INR X bn in 20__ and is estimated to reach INR Y bn by 20__

Challenges

Drivers

Drivers & Challenges

Trends

—Rise in Packaging Costs —Shortage of Cold Storage Units —Deficit in Power Supply —Under‐invoiced Imports

—Festivals and Gifting Culture —Increasing Health Awareness —Growth of User Industries —Booming Retail Market —Rising Income and Consumption —Rapid Urbanization

E L P M A S

 Exhibitions and Events  Innovative Packaging  Organic Dry Fruits  Dry Fruit Nankhatais  Gaining Special Space in Retail  Postal Dry Fruit Delivery from Kashmir  Usage of Mainline Container Vessels for Cashew Imports Major Players

Competition Company A

Company B. DRY FRUIT MARKET IN INDIA 2013.PPT

Company C 2

•Introduction •Market Overview  Global  India •Import & Export •Drivers & Challenges •Government Rules & Policies •Government Participation •Trends •Competitive Landscape •Strategic Recommendations •Appendix

P M A S

DRY FRUIT MARKET IN INDIA 2013.PPT

Food processing can be sub‐segmented into numerous categories including dried fruits

P M A S

Fruits &

Meat &

Vegetables

Poultry

Fruit Pulps and Juices

Ready‐to‐ serve Beverages

Canned/ Frozen Fruits

Market Segmentation Food Processing

Dairy

Mushroom Products

Marine Products

Jams, Squashes, Pickles, Chutneys

Consumer

Grains

Dried Vegetables

Food

Dried Fruits

Others

• The Food Processing sector is segmented into multiple categories including fruits and vegetables • Among the various types of processed fruit and vegetable products ‐ juices, dry fruits etc are becoming more popular among the consumers due to the health benefits associated with them

DRY FRUIT MARKET IN INDIA 2013.PPT

The changing mindset of people toward healthy food habits is going to… Global Market – Overview (1/4) • Dry fruits refer to those fruits which are devoid of any moisture content either naturally or those which had been dried artificially using machines such as dehydrators • Globally a wide variety of dry fruits are consumed which includes almond, brazil nut, cashew, raisin, pecan, peanut etc among others • It is estimated that during 20__, total global dry fruit production was around A5 mn tonnes and consumption around B5 mn tonnes

Production & Growth

mn tonnes 60 50 40 30 20 10 0

20__

P M SA mn tonnes

X% A4

20__

Consumption & Growth

60 50 40 30 20 10 0

20__

DRY FRUIT MARKET IN INDIA 2013.PPT

20__

20__ 5

…boost the global dry fruit industry in the ensuing years Global Market – Overview (2/4) Globally the different types of dry fruits are divided into two segments

Tree Nut

Dried Fruit Globally, tree nuts hold the major share both in terms of production as well as consumption

Segmental Share – Production (20__)

X1%

X2%

E L

Segmental Share – Consumption (20__)

P M SA Tree Nut

Y1%

Y2%

Dried Fruit

DRY FRUIT MARKET IN INDIA 2013.PPT

The Indian dry fruit industry will witness robust growth in the coming years… Indian Market – Overview (1/5) • India is considered to be the biggest producer of fruit in the world  Under the food processing industry, fruits & vegetables processing is one of the largest in terms of production, consumption, export etc and has good growth potential

• The Indian dry fruit industry, which is a part of this fruit and vegetable processing industry is also growing rapidly mainly due to the increasing awareness among people about the benefits of dry fruit consumption • The market is primarily dominated by the unorganized sector accounting for around X1% of the overall market • During 20__, the Indian dry fruit market was found to be around INR A3 bn and is expected to reach INR A8 bn by the year 20__, growing at a CAGR of P% Market Size & Growth

Market Segmentation (2012)

Organized Sector

INR bn 200 150

P% A2

20__

100

P M SA

20__

DRY FRUIT MARKET IN INDIA 2013.PPT

Unorganized Sector

X2%

X1% 7

…with increased consumption amongst consumers

P M SA

Indian Market – Overview (2/5)

Dry Fruit Consumption – Segmental Shares (20__)

• In general, the major type of dry fruits consumed in India includes cashew, raisin, walnut, almond, pistachio, fig, apricot and date

Cashew Almonds

Walnuts Pistachio

A% B%

Cashew accounts for the major share in the overall consumption of dry fruits because it itself is one of the major ingredients in food products such as the popular Indian sweet kaju barfi, whereas other dry fruits are mostly used as an additive or for garnishing purpose

Raisin Others

• The food processing industry is the largest consumer of dried fruits where they are used as raw material inputs for different products such as breakfast cereals, bakery, desserts and confectionery products

DRY FRUIT MARKET IN INDIA 2013.PPT

Household consumption of dry fruits play a vital role in driving the demand Indian Market – Overview (3/5) Segmental Shares of Dry Fruit Consumption Pattern – Direct and as Additive (20__)

• In India, apart from industrial consumption, household consumption of dry fruits also play an important role in driving the demand • Dry fruits such as pistachios, almonds, dried plums, chilguzas (pine fruit), dried apricots etc are either consumed directly or used as an additives for Indian sweets

Direct Consumption X2%

Y4%

Major consumption of dry fruits take place in the Northern regions of India

Y3%

Y1%

` North

South

West

East

LE Additive

X1%

P M A S

Region Wise Dry Fruit Consumption (20__)

Y2%

DRY FRUIT MARKET IN INDIA 2013.PPT

Import of Major Types of Dry Fruits (1/6) Shelled Hazelnuts

Major Importing Nations – Value Wise (20__)

Volume

Value

INR mn

‘000 unit

Z A X

20__

INR mn D

20__ (Apr‐Sep)

Value

10,000

3,000

8,000

P M A S

6,000

2,000

4,000

2,000

Major Importing Nations – Value Wise (20__)

‘000 unit

A1%

5 0

Pistachios Volume

N.A.

B C

A4%

1,000

A2% A3%

4,000

A5%

B5% B6% B3% B4%

B1% B2%

20__

20__ (Apr‐Sep)

Note: HS Code 080222 (Shelled hazelnuts, fresh or dried ), HS Code 080250 (Pistachios fresh or dried) DRY FRUIT MARKET IN INDIA 2013.PPT

Drivers & Challenges – Summary

Drivers Festivals and Gifting Culture

Challenges Rise in Packaging Costs

Increasing Health Awareness

Shortage of Cold Storage Units

Growth of User Industries

Deficit in Power Supply

Booming Retail Market Rising Income and Consumption Rapid Urbanization

P M A S

Under‐invoiced Imports

DRY FRUIT MARKET IN INDIA 2013.PPT

Trends – Summary

P M A S

Exhibitions and Z Innovative Y

A Dry Fruits

` Key Trends

Dry Fruit X Gaining Special Space in Retail Postal Dry Fruit Delivery from S Usage of Mainline Container Vessels for SS DRY FRUIT MARKET IN INDIA 2013.PPT

Private: Domestic – Company A (1/3) Company Information

Offices and Centres – India

P M SA

Corporate Address

Company A Street A City B State C

Tel No.

91‐11‐32314433/ 91‐9311001260/ 91‐ 9871629292

Fax No.

N.A.

Website

www.company.co.in

Year of Incorporation

2009

City B

Head Office

Products and Services Category

Products/Services

Almond

Raw, salted, roasted, black pepper, jaggery, honey almonds

Cashew

Raw, salted, black pepper, chilli, chilli garlic, fresh mint, hing jeera cashew

Pistachio

Regular, salted and roasted pistachios

Raisin

Regular raisins

Key People Name

Designation

Person A

Director

Person B.

Director

Person C

Director

Person D

Director

DRY FRUIT MARKET IN INDIA 2013.PPT

Private: Domestic – Company A (2/3) Financial Snapshot Total Income INR mn 60

P M SA Net Profit/Loss

INR mn

0.8

40 X1 20

0.6 0.4

0.2 0.0

20__

Financial Summary

Key Ratios y‐o‐y change (2012‐11)

2012

2011

2010

5.63

16.79%

11.16%

‐10.82%

‐0.41

1.45%

1.86%

0.61%

‐0.41

1.45%

1.86%

0.74%

‐56.39

29.56%

85.95%

77.39%

29.86

‐43.24%

‐73.10%

45.21%

37.96

‐10.49%

‐48.45%

‐18.53%

‐53.87

28.75%

82.61%

72.27%

‐22.85

7.69%

30.54%

15.02%

Operating costs (% of Sales)

‐5.61

83.20%

88.82%

112.24%

Administration costs (% of Sales)

0.00

0.00%

5.59%

Interest costs (% of Sales)

0.04

0.09%

0.05%

0.00%

‐12.24%

0.68

0.78

0.87

‐78.83%

0.05

0.22

0.24

N.A.

0.00

N.A.

0.00

‐17.65%

196.67

238.81

N.A.

‐67.60%

5.30

16.35

21.92

‐55.21%

19.81

44.23

105.47

Particulars

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 Y3 mn in FY 20__, as compared to net profit of INR Y2 mn in FY 20__

Liquidity Ratios

• The company reported total income of INR X3 mn in FY 20__, registering a decrease of P% over FY 20__

Leverage Ratios

• The company earned an operating margin of C% in FY 20__, an increase of D percentage points over FY 20__ • The company reported interest coverage ratio of E in FY 20__, a decrease of F% over FY 20__

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

‐54.42%

3.33

7.30

4.11

‐72.12%

‐7.23

‐25.94

‐27.04

‐55.72%

20.38

46.02

112.94

Improved

DRY FRUIT MARKET IN INDIA 2013.PPT

Decline

Private: Domestic – Company A (3/3) Business Highlights Description

P M A S News

• The company A is primarily engaged in the business of importing and trading dry fruits and spices in India • It operates as a sister company of California Agri Nuts Corporation (CANC), which is considered as one of

Overview

Import Quality Assurance

the top importers of dry fruits in the country • In addition to the various daily usage packs of dry fruits, the company has a separate range of dry fruit gift packs especially prepared for various gifting occassions

• The company imports various dry fruits such as almonds, pistachios, cashews, walnuts, raisins, cardamom, aniseed etc. from USA, Australia, Spain, Middle East, Iran, Turkey, and South‐east Asia

• The company has ISO 9001:2008 certification and its manufacturing and packaging facilities are HACCP (Hazard Analysis and Critical Control Points) Certified

• The products are available at all modern retails such as Bharti‐Walmart, Aditya Birla Retail, Jubilant Retail Presence

Recent Launches

Retail, Hypercity, Natures Basket, Ruci and Idoni, and In ‘n’ Out, and institutions such as Indian Navy Services, DT Cinemas, Indian Railways, Mumbai and Delhi Airports and Barista Lavazza

• Premium dry fruit gift packs for all occasions under a brand name of ‘Nutty Gritties Shubhkamnayen’ • In 2011, launched three new varieties of dry fruits – Roasted and salted almonds, roasted and salted cashews and fresh mint cashews

 Launched its dry fruit brands in Cafe Buddy's outlets located at metro stations across Delhi to increase brand presence Upcoming Plans

• The company has future plans of associating with Trent Ltd, Marche Foods, Spencers, Big Bazaar and other supermarkets on state level to increase the reach and availability of the products

DRY FRUIT MARKET IN INDIA 2013.PPT

Appendix Ratio

Calculations

Ratio

Calculations

Operating Margin

(Operating Income/Revenues)*100

Current Ratio

Current Assets / Current Liabilities

Net Margin

(Net Profit / Revenues) *100

Cash Ratio

Profit Before Tax Margin

(Income Before Tax / Revenues *100

{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity

Total Liabilities / Shareholders Equity

Debt to Capital Ratio

{Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio

EBIT / Interest Expense

Fixed Asset Turnover

Sales / Fixed Assets

Asset Turnover

Sales / Total Assets

Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital

(Net Income / Shareholders Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100

Return on Assets

(EBIT / Total Assets)*100

Return on Fixed Assets

(EBIT / Fixed Assets) *100

Operating Costs (% of Sales)

(Operating Expenses / Sales) *100

Current Asset Turnover

Sales / Current Assets

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Working Capital Turnover

Sales / Working Capital

(Interest Expenses / Sales) *100

Capital Employed Turnover

Sales / (Shareholders Equity + Total Debt)

Interest Costs (% of Sales)

DRY FRUIT MARKET IN INDIA 2013.PPT

Sources of Information Secondary Research Print Medium

Primary Research Interviews

Leading Newspapers

Leading Industry Vendors

Journals / Magazines

Industry Stakeholders

Business Magazines

Industry Experts

Electronic Medium Company Websites

Surveys Conducted in Social / Technology Focused Forums

Government Websites / Resources Online Magazines Online Journals / Articles Premium Databases Social Networking Space

DRY FRUIT MARKET IN INDIA 2013.PPT

Thank you for the attention Dry Fruit Market – India report is part of Netscribes’ Food and Beverage Series. For the complete market research report, contact us at: Phone: E‐Mail:

+91 33 4027 6214/15 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. 18