Nutraceuticals Market – India April 2014
Executive Summary Market Probiotic Market
Market valued at INR x bn in 2011-12 and is estimated to grow at a CAGR of y % over the next six years Comprises three segments, dietary supplements, functional foods and functional beverages India accounts for a mere z% of the total world market for nutraceuticals Probiotics in India generally comes in two forms : Drugs and Packaged foods and beverages Major pharmaceuticals companies have become active in this space and are devising newer drugs and products, however current drugs are predominant in the area of gastroenterology
Drivers:
Drivers & Challenges
Trends
Challenges:
Faulty Lifestyles Leading to related Disorders Increasing Disposable Income Rise in Ageing Population Growing Awareness towards Preventive Care and Self Medication – Expanding Sales Channels – Ideal Manufacturing Destination
– – – –
Fortified foods Ayurvedic nutraceuticals Foreign tie-ups
– Lack of Standardization – High Product Price
Initiatives by players to educate consumers Encapsulation Cosmeceuticals and Nanoceuticals
Major Public Players
Competition
Major Private Players
Dabur India
Dr. Reddy's Laboratories
Himalaya Drug
Herbalife International India
Abbott India
Ranbaxy Laboratories
Yakult Danone
Amway India Enterprises
NUTRACEUTICALS MARKET IN INDIA 2014.PPT
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•Macro Economic Indicators •Introduction •Market Overview •Drivers & Challenges •Value Chain Analysis •Trends •Government Regulations •Competitive Landscape •Strategic Recommendations •Appendix NUTRACEUTICALS MARKET IN INDIA 2014.PPT
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Economic Indicators (1/3) GDP at Factor Cost: Quarterly
SAMPLE
INR tn 15
13
a1 a5 a9
12
a13
14
a4 a8 a12
a3 a7 a11
a2 a6 a10 a14
2010-11 2011-12 2012-13 2013-14
11
Q2
Q1
Q3
Q4
Inflation Rate: Monthly % 2 1
b1
b3
b4
b2
0 -1 -2
b5 Jul 20-- - Aug 20--
Aug 20-- - Sep 20--
Sep 20-- - Oct 20--
Oct 20-- - Nov 20--
NUTRACEUTICALS MARKET IN INDIA 2014.PPT
Nov 20-- - Dec 20-4
Nutraceutical – Definition and Segments • The term Nutraceutical comes from the words “nutrition” combined with “pharmaceutical”, and implies a food or food product that reportedly provides health and medical benefits, including the prevention and treatment of diseases • It comprises extracts of food having a medicinal impact on human health and comes in the form of food, dietary supplements, and medical foods
Dietary Supplements
• xx
Functional Foods
• yy
NUTRACEUTICALS MARKET IN INDIA 2014.PPT
Functional Beverage
• zz
5
Increasing shift towards preventive therapies and increasing disposable income has led to a growing market Nutraceuticals – Market Overview • India accounts for only x% of the world nutraceuticals market • Nutraceuticals market in India is growing at a fast pace and is expected to be almost y in size by 20-• Growing consciousness among Indians about health and how they look and feel is resulting in greater demand for product 1, product 2 and product 3 Product 2 segment is witnessing sizeable demand Product 4 will be a rapidly growing category until 20-followed by dietary supplements
• Several pharmaceutical companies are entering this space, realizing that nutraceutical products can act as a supplementary product for their y products
Market Size and Growth INR bn a7
400
+x%
a6
300 200
a2
a1
a3
a5
a4
100 0
20--
20--
20--e
20--e
20--e
20--e
20--e
Market Segmentation (20--)
There is a rising penetration of pharmaceutical companies in nutraceutical segment in the form of x1 and x2 supplements
x1%
• There are more Indian players than multinationals in the market as it is a relatively low technology section compared to pharmaceuticals • Product 6 is one of the most emerging and nascent segments in this market with increasing consumer acceptance and greater player attention expected to drive its growth
x2%
x3%
Segment 1 NUTRACEUTICALS MARKET IN INDIA 2014.PPT
Segment 2
Segment 3 6
Drivers & Challenges – Summary
Drivers Faulty Lifestyles Leading to related Disorders Increasing Disposable Income
Challenges
Rise in Ageing Population
Lack of Standardisation
Growing Awareness towards Preventive Care and Self Medication
High Product Price
Expanding Sales Channels Ideal Manufacturing Destination
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Rise in chronic diseases is encouraging people to move towards preventive treatment Faulty Lifestyles Leading to Related Disorders
Impact
• xx
Prevalence of Chronic Lifestyle Diseases in India mn
20--
300
20--e
x6
250
x5
200 150 100 50
x1
x2
x7 x3
0
Diabetes
x8
x4
Cancer
Hypertension
NUTRACEUTICALS MARKET IN INDIA 2014.PPT
Cardiovascular Diseases 8
Nutraceuticals Market – Value Chain X1 X2 X3
X5
X4
X6
X7
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Trends – Summary
SAMPLE
Fortified Foods
Ayurvedic Nutraceuticals
Foreign Tie-ups
Trends` Players Educating Consumers
Encapsulation
Cosmeceuticals and Nanoceuticals
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Fortified foods are emerging as the new growth segment for the nutraceuticals industry Fortified Foods
• xx
Advantages
• yy
Examples
• zz
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Genesis of Food Safety and Standards Act, 20-Pre 20--
• xx
20-- -20--
Post 20--
• zz
• yy
Conclusion
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Market Competition – Porter’s Five Forces Analysis
SAMPLE Threat of New Entrants
Impact Low
Bargaining Power of Suppliers
Competitive Rivalry
Threat of Substitutes
Impact Low
Impact Medium
Impact Low
Bargaining Power of Buyers
Impact Medium
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Competitive Benchmarking (1/5) Public Trading Comparables (FY 20--) Company A
Market Capitalization (INR bn)
Company B
Company C
Company D
Company E
-
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio (04/04/2014)
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Competitive Benchmarking (2/5) Key Ratios of Major Public Companies – Operational Basis (FY 20--) (1/3) Gross Margin
%
Operating Margin
80 60
x1
40 20
x7
x4 x2
x3
Net Margin
x5
0
x6
x10
x8 x9
-20
Company A
• xx
Company B
Company D
x11
x12
Company E
SAMPLE NUTRACEUTICALS MARKET IN INDIA 2014.PPT
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Public: Domestic Company – Company A (1/4) Company Information Corporate Address
Offices and Centres – India
Company Address
Tel No.
+91-xx- yyyyyyyyy
Fax No.
+91-ww-zzzzzzzz
Website
www.companyA.com
Year of Incorporation
19--
Ticker Symbol
------
Stock Exchange
Exchange Name
Products and Services Category
Head Office Products/Services
Key People Segment
Others
Product 1, product 2, product 3,………………….
Product 1, product 2, product 3………
Name
Designation
Person 1
Designation
Person 2
Designation
Person 3
Designation
Person 4
Designation
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Public: Domestic Company – Company A (2/4) Financial Snapshot Total Income INR mn
Key Ratios Profit INR mn
Total Income Profit / Loss
a
y4
y3
y1
f
y2
b x1
x2
d
x4
x3
g h
c 20--
20--
20--
20--
Financial Summary • The company earned a net profit of INR x4 mn in FY 20--, as compared to net profit of INR x3 mn in FY 20-• The company reported total Income of INR y4 mn in FY 20-registering an increase of x% over FY 20-• The company earned an operating margin of p% in FY 20--, a decrease of y percentage points over FY 20-• The company reported debt to equity ratio of q in FY 20--, an increase of r% over FY 20--
Financial Summary Indicators
Value
Market Capitalization (INR)
z1
Total Enterprise Value (INR) EPS (INR) PE Ratio (Absolute)
z2 z3 z4
Particulars
y-o-y change (20-----)
20--
20--
20--
20--
-3.31
7.37%
10.69%
11.63%
14.80%
-6.73
4.02%
10.75%
12.08%
7.61%
-5.22
6.52%
11.74%
15.66%
11.00%
-7.25
5.51%
12.76%
13.22%
9.02%
-2.22
8.50%
10.73%
12.11%
16.70%
-7.92
20.82%
28.74%
28.25%
56.05%
-1.89
6.67%
8.56%
10.77%
14.08%
-4.90
26.02%
30.92%
33.44%
41.15%
3.47
92.50%
89.03%
87.70%
84.70%
5.78
33.11%
27.33%
22.91%
25.64%
-0.24
0.82%
1.06%
1.21%
1.74%
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
0.43%
2.49
2.48
4.42
2.60
-14.77%
0.53
0.63
1.76
1.09
7.22%
0.32
0.30
0.01
0.02
5.46%
0.24
0.23
0.01
0.02
-12.08%
9.10
10.35
10.14
8.78
23.09%
3.47
2.82
2.72
2.69
14.00%
0.89
0.78
0.88
0.92
6.29%
1.66
1.56
1.78
2.26
5.98%
2.78
2.62
2.30
3.66
14.65%
1.02
0.89
1.02
1.13
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
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Public: Domestic Company – Company A (3/4) Key Business Segments
100% 80%
Segment 1
Segment 3
Segment 2
Segment 4
21%
11%
76%
88%
3%
0% 1%
20--
20--
60% 40%
Key Geographic Segments
11%
85%
20% 0%
Business Highlights (1/2) Description
News
Overview
• xx
Nutraceutical Products
• yy
Product Launch
• zz
Expansion Plans
• ww
Country 1
19% 65%
13%
2%
100% 80% 60%
87%
97%
97%
95%
13%
3%
3%
5%
20--
20--
20--
20--
40% 20%
SAMPLE 4% 1% 20--
20--
Country 2
0%
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Public: Domestic Company – Company A (4/4)
• Strength 1 • Strength 2 • Strength 3
• Weakness 1 • Weakness 2 • Weakness 3
S
W
O
T
• Opportunity 1 • Opportunity 2 • Opportunity 3
• Threat 1 • Threat 2 • Threat 3
SAMPLE NUTRACEUTICALS MARKET IN INDIA 2014.PPT
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Private: Foreign Company – Company B (1/5) Company Information
Offices and Centres – India
Company Address Corporate Address
Tel No.
+91-xx- yyyyyyyyy
Fax No.
+91-ww-zzzzzzzz
Website
www.companyA.com
Year of Incorporation
20--
Products and Services Category
Head Office Products/Services
Key People Segment
Others
Product 1, product 2, product 3,………………….
Product 1, product 2, product 3………
Name
Designation
Person 1
Designation
Person 2
Designation
Person 3
Designation
Person 4
Designation
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Private: Foreign Company – Company B (2/5) Shareholders of the Company as on xx/yy/20-Name
No. of Shares held
Ownership Structure Type 1
Total
x%
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Private: Foreign Company – Company B (3/5) Financial Snapshot Total Income INR mn
Key Ratios Profit INR mn
Total Income Profit / Loss
a y1 b x1
y3
d f
y2 x2
y4
x3
x4
g h
c 20--
20--
20--
20--
Financial Summary • The company earned a net profit of INR x4 mn in FY 20--, as compared to net profit of INR x3 mn in FY 20-• The company reported total Income of INR y4 mn in FY 20-registering an increase of x% over FY 20-• The company earned an operating margin of p% in FY 20--, a decrease of y percentage points over FY 20-• The company reported debt to equity ratio of q in FY 20--, an increase of r% over FY 20--
Particulars
y-o-y change (20-----)
20--
20--
20--
20--
-3.31
7.37%
10.69%
11.63%
14.80%
-6.73
4.02%
10.75%
12.08%
7.61%
-5.22
6.52%
11.74%
15.66%
11.00%
-7.25
5.51%
12.76%
13.22%
9.02%
-2.22
8.50%
10.73%
12.11%
16.70%
-7.92
20.82%
28.74%
28.25%
56.05%
-1.89
6.67%
8.56%
10.77%
14.08%
-4.90
26.02%
30.92%
33.44%
41.15%
3.47
92.50%
89.03%
87.70%
84.70%
5.78
33.11%
27.33%
22.91%
25.64%
-0.24
0.82%
1.06%
1.21%
1.74%
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
0.43%
2.49
2.48
4.42
2.60
-14.77%
0.53
0.63
1.76
1.09
7.22%
0.32
0.30
0.01
0.02
5.46%
0.24
0.23
0.01
0.02
-12.08%
9.10
10.35
10.14
8.78
23.09%
3.47
2.82
2.72
2.69
14.00%
0.89
0.78
0.88
0.92
6.29%
1.66
1.56
1.78
2.26
5.98%
2.78
2.62
2.30
3.66
14.65%
1.02
0.89
1.02
1.13
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
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Private: Foreign Company – Company B (4/5) Business Highlights Description
News
Overview
• xx
Network
• yy
Nutraceutical Products
• zz
Expansion Plans
• ww
SAMPLE NUTRACEUTICALS MARKET IN INDIA 2014.PPT
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Private: Foreign Company – Company B (5/5)
• Strength 1 • Strength 2 • Strength 3
• Weakness 1 • Weakness 2 • Weakness 3
S
W
O
T
• Opportunity 1 • Opportunity 2 • Opportunity 3
• Threat 1 • Threat 2 • Threat 3
SAMPLE NUTRACEUTICALS MARKET IN INDIA 2014.PPT
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Strategies that can help players penetrate deeper into the market • xx
• yy Strategic Recommendations `
• zz
• ww
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