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Packaging Industry – India November 2014
Executive Summary Market Overview
In 20--, the Indian packaging industry stood at INR xx bn and is expected to reach INR yy bn by FY 20--, growing at CAGR of about z% About p% of the revenues are generated from the plastic packaging materials Drivers:
Drivers & Challenges
Key Trends
Retail Growth and Increased Consumerism High Demand from Food and Beverage Industry Rise in FMCG sector Increase in Cargo Traffic Handled at Major Ports Rising Exports Growth in Pharmaceutical Market and Paint and Lubricant Industry Increasing Demand from Rural Sector and Logistics Advantage
Challenges:
Ban on Plastic Packaging Rise in Price of Raw Materials Lack of Packaging Machinery
Flexible Packaging is Gaining Preference Use of In-Mold Label Plastic Packaging of Beer Key Players
Competitive Landscape
Company A
Company B
Company C
Company D
Company E
Company F
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•Macroeconomic Indicators
•Introduction •Market Overview •Export-Import
•Drivers & Challenges •Government Initiatives •Trends •Competitive Landscape •Opportunities •Strategic Recommendations •Appendix PACKAGING INDUSTRY IN INDIA 2014.PPT
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Packaging industry in India is driven by pharmaceutical and food packaging sector Market Overview – India Packaging Industry
Market Segmentation
• India is one of the fastest expanding packaging markets in the world, growing at a CAGR of z% It is the sixth largest packaging market in the world • Greater demand due to economic growth will continue this growth trend • Food and beverage contributes c% while pharma sector contributes d% to the packaging industry
y6
y8 y7 y2
y5
a
e
b
f
c
g
d
h
y4 y1 y3
Indian Packaging Industry – Size and Growth INR bn a7 P%
a6 a5 a4
x1
x2
x3
x4
x5
x6
a3 a2 a1 FY 20--
FY 20--
FY 20--
FY 20--
PACKAGING INDUSTRY IN INDIA 2014.PPT
FY 20--
FY 20-4
SAMPLE
Exports of Glass Packaging Materials
Export of Glass Materials Used for Packaging (Value-Wise) INR mn a4 P%
x3
a3
x4
x2 x1
a2
a1 FY 20--
FY 20--
FY 20--
FY 20--
Export of Glass Materials Used for Packaging (Volume-Wise) mn
Q%
b5 b4
y3 y1
y2
FY 20--
FY 20--
y4
b3 b2 b1 FY 20--
PACKAGING INDUSTRY IN INDIA 2014.PPT
FY 20-5
SAMPLE
Exports of Glass Packaging Materials
Export Based on Value – Country-Wise FY20--
FY20-a1 x1 x2
x7 x6
x5
x3 x4
a1
y1
b1 c1
y2
d1
y3
y7
e1
y4
f1 g1
y6
Exports Based on Value – Product-Wise FY20--
y5
b1 c1 d1 e1 f1 g1
Exports Based on Volume – Product-Wise FY20--
z1 z2
a2
d1 d2
c2
b2
a2
c2
b2
d3
z3
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Drivers & Challenges – Summary
Drivers Retail Growth and Increased Consumerism High Demand from Food and Beverage Industry Rise in FMCG sector
Challenges Ban on Plastic Packaging
Increase in Cargo Traffic Handled at Major Ports
Rise in Price of Raw Materials
Rising Exports
Lack of Packaging Machinery
Growth in Pharmaceutical and Paint and Lubricant Industry
Increasing Demand from Rural Sector and Logistics Advantage
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Growing packaged food and beverage sector generates huge demand for packaging industry High Demand from Food and Beverage Industry (a/b)
Impact
• The biggest driving force for the plastic packaging industry is the growing demand from the food packaging industry in India Packaged Food Industry in India – Size and Growth INR tr +65%
4 3
x2
x1
2 1 0
20--
20--e
• Plastic is one of the predominant packaging material for flexible as well as rigid packaging used in the food and beverage industry • Rigid packaging accounts for a major share, ~ b% of the food and beverage packaging industry There are several food products that can be packed in rigid plastic containers, such as jams, milk, nutrition powders, yoghurts, butter, cheese, noodles, etc.
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Trends – Summary Flexible Packaging is Gaining Preference
Use of In-Mold Label
Emerging Trends in PET Packaging `
Key Trends
Nanoparticle Concept to Develop Plastic Films
Avant-garde Use of Bioplastics in Packaging
Other Trends PACKAGING INDUSTRY IN INDIA 2014.PPT
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Competitive Benchmarking (2/5)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3) Gross Margin
%
Net Margin
x2
a4 a3
y2 x1
a2
Operating Margin
z2 y1
x3 y3
z1
z3
a1 Company A
Company B
Company C
• Company B recorded gross margin of x2%, higher than that of Company A and Company C which recorded gross margin of x1% and x3% respectively • Company B recorded highest operating margin of y2%, followed by Company C and Company A which recorded operating margin of y3% and y1% respectively • Company B recorded a net margin of z2%, higher than that of Company C and Company A which recorded net margin of z3% and z2%
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SAMPLE
Public: Domestic Company – Company A (1/4) Company Information
Offices and Centres – India
Corporate Address Tel No. Noida
Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Headquarters
Products and Services Category
Products/Services
Key People Name
Designation
Person 1 Person 2 Person 3 Person 4 PACKAGING INDUSTRY IN INDIA 2014.PPT
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Public: Domestic Company – Company A (2/4) Financial Snapshot Total Income
INR mn
a4
Key Ratios
y1
y2
Net Profit/Loss
INR mn
y4
y3
b4
a3 a2
b3 x1
x2
x4
x3
a1
b2 b1
20--
20--
20--
20--
Financial Summary • The company reported total income of INR x4 mn in FY 20--, registering an increase of p% over FY 20-• The company earned an operating margin of z1% in FY 20--, an increase of z2 percentage points over FY 20-• The company reported debt to equity ratio of d1 in FY 20--, an increase of d2% over FY 20--
Key Financial Performance Indicators Indicators Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
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
• The company earned a net profit of INR y4 mn in FY 20--, as compared to net profit of INR y3 mn in FY 20--
Market Capitalization (INR mn)
Particulars
Value
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
PACKAGING INDUSTRY IN INDIA 2014.PPT
Decline
12
Public: Domestic Company – Company A (3/4) Key Business Segments
Key Geographic Segments
Agricultural Sol
Chemicals
Plastics
Performance Pdts
Others
Func. Sol
a3 a2 a1
India
Func. Mat & Sol
Other
b3 a1
b1 f1 e1 c1 d1 20--
a2 b2 f2 e2 c2 d2 20--
a3
a4
b3 f3 e3 d3
b4 f4 e4 d4
b2
p1
p2
b1 20--
20--
20--
20--
p3
p4
q1
q2
20--
20--
Business Highlights (1/2) Description
News
Overview
• Company A is the Indian subsidiary of Company X, headquartered in Germany It was formerly known as Company Y and changed its name to Company A in September 19--
Plastic & Packaging
• Plastics segment includes Expandable Polystyrene (EPS), a engineering plastics category for the automotive and electrical industries as well as for use in household appliances and sports and leisure products, polyurethanes • Offers packaging solutions to food & beverage industry as well as cosmetics and pharmaceutical market Provide a wide range of products used in the packaging industry ranging from pigments, dyes, resins, preparations, light stabilizers and sealants, to plasticizers, plastics used for flexible as well as rigid packaging including biodegradable plastics, and paper chemicals
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SAMPLE
Public: Domestic Company – Company A (4/4)
S
W
O
T
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Alcoholic beverage segment to create huge opportunity for glass packaging sector Glass Packaging Opportunities
SAMPLE
• Alcoholic beverages market that is mostly packaged in glass containers is showing impressive growth potential in India • Indian pharmaceutical industry is currently world’s ard largest by volume and bth largest in terms of domestic consumption • Currently d% of all food and beverages in India are packed in container glasses India’s export of F&B would require usage of container glass packaging for meeting the packaging standards of countries it conducts trade with
Perfumery Industry
Alcoholic Beverage Industry INR bn
INR bn a4
P%
x2
Q%
y2
b3
a3 a2
b4
y1
x1
b2
a1
b1 20--
20--e
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Strategic Recommendations
SAMPLE
X
Y
Z
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