Snacks Market India Snacks Market – May 2013
SAMPLE
Executive Summary
Market
Indian snacks market was valued at INR XX bn in 20__and is estimated to reach INR YY bn by 2017__ With changing consumer behavior due to various factors such as increasing income levels and busy urban lifestyle these products are gaining popularity amongst them busy urban lifestyle, these products are gaining popularity amongst them
Drivers
Drivers & Challenges
Trends
Challenges
—Rapid Urbanization —Growing Income and Consumption G i I dC ti —Increasing Working Women Population —Marketing Campaigns —Growing Retail Market —Convenience Factor —Convenience Factor Exhibitions and Events Product Innovation Corporate Activities Corporate Activities Inclusion of Nuts as Snacking Option
—Rise in Packaging Costs —Unorganized Sector and Local U i dS t dL l Players —Competitive Price Points —Health Concerns
Launch of Various Ethnic Snacks Innovative Promotional Campaigns Introduction of Healthy Snacks Introduction of Healthy Snacks
Major Players
Competition
Company A
Company B.
SNACKS MARKET IN INDIA 2013.PPT
Company C
2
SAMPLE
•Macro‐Economic Indicators •Introduction •Market Overview •Market Overview •Market Segmentation •Consumer Insights g •Import & Export •Drivers & Challenges •Government Rules & Policies •Government Participation •Trends •Competitive Landscape •Strategic Recommendations g •Appendix SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14
a1 b1 c1 d1
13 12 11
a2 b2 c2 d2
a3 b3 c3 d3
b4 c4
Q3
Q4
d4
10 Q1
Q2 2009‐10
2010‐11
2011‐12
2012‐13
Inflation Rate: Monthlyy % e2
1.0
e5
08 0.8 0.6
e1
e3
e4
Oct 2012 ‐ Nov 2012
Nov 2012 ‐ Dec 2012
0.4 0.2 0.0
Aug 2012 ‐ Sep 2012
Sep 2012 ‐ Oct 2012
SNACKS MARKET IN INDIA 2013.PPT
Dec 2012 ‐ Jan 2013 4
Food processing can be sub‐segmented into numerous categories which include snacks as well
SAMPLE Market Segmentation Food Processing
Fruits &
X
Vegetables
A
p
Marine
Y
Products
Z
Beverages
q
Baked Products
U
C
Snacks
r
Others
Focus of the report SNACKS MARKET IN INDIA 2013.PPT
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The Indian snacks market is expected to witness remarkable growth…
SAMPLE
Indian Market – Overview (1/5) • Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily • It has gained popularity amongst consumers due to various factors such as increasing income levels, hectic lifestyle and convenience associated with its consumption • Indian snack market is quite competitive in nature due to presence of MNCs, regional and local players as well as the unorganized sector well as the unorganized sector • During 20__, Indian snack market was valued around INR X1 bn
Market Si e & Gro th Market Size & Growth INR bn 300
x6
250
y x4
200 150 100
x5
x1
x2
x3
50 0
20__
20__
20__
20__
SNACKS MARKET IN INDIA 2013.PPT
20__
20__ 6
…in the next few years with increased consumption amongst consumers
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Indian Market – Overview (2/5) • Lots of varieties of snacking options are available in the Indian market which is another factor behind making it competitive • Players keep on innovating with flavors as consumers want variety and taste • Snacks is an impulse purchase product and S k i i l h d t d consumers in general are not loyal to any particular brand
Market Segmentation (20__) Organized Sector Unorganized Sector
• Despite the presence of organized players such as PepsiCo, ITC and Haldirams, unorganized sector dominates the market a1
a2
• Local Local and regional players raised market share and regional players raised market share by invading those markets where there was absence of bigger brands • Bigger players initially focused on urban markets and upon its saturation markets and upon its saturation gradually shifted its focus towards other lower tier markets SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Lots of varieties of snacks are available in the market and… Indian Market – Overview (4/5) • Snacks market is very dynamic as events such as entry of new players and launch of wide range of products by existing players keep on happening launch of wide range of products by existing players keep on happening Whenever new products enter any category, market shares of major players get affected Though major players have maintained their top positions, but, their market shares got reduced in the past few years
Change in Market Share of Major Players Market Share (20 ) Market Share (20__)
A4 A5
Market Share (20 ) Market Share (20__) B6 B7
A6
A B
A3
B5 B4
C D
B3 B1
E
A2 A1
F Others
SNACKS MARKET IN INDIA 2013.PPT
B2
8
SAMPLE
Snacks are broadly classified into two segments Market Segmentation (1/3) Snacks ‐ Classification Indian market is filled with wide varieties of snacks, but, all of them are classified under two broad categories
Western
Market Share of Various Snacks (20__)
Traditional
Segmental Share (20__)
g
f
a
e
A
E
B
F
C
Oh Others
D
A b1
B a1
d
c
b
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Western snack segment is already very popular amongst consumers…
SAMPLE
Market Segmentation – Western Snacks (2/3)
Western Snacks
• Western snacks include products such as chips, wafers, crisps and extruded snacks Potato chips account for the major share in Indian snacks market Potato chips account for the major share in Indian snacks market
B
• XX • XX A A B
Organized‐Unorganized Breakup O ga ed U o ga ed ea up (20__)
SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Consumer Insights on Snacks (1/11) Sample Size
80
Survey Duration & Period
3 Weeks – March 2013
Sample Sources
Social Media Websites and Other Related Forums
Quantitative Representation Used
Percentage
Profile of Respondents – Age Wise (years) • Survey on snacks was conducted on social media sites and other related forums y p • Overall survey has been kept close‐ended to capture specific information according to requirements • The survey has been conducted amongst a group of general consumers heading from major Indian cities including Mumbai, Delhi, Kolkata, Pune, Hyderabad, Bangalore among others
18‐24
31‐35
25‐30 25 30
36‐40 36 40
41 & above
ED
C
B
A
SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Consumer Insights on Snacks (2/11) Q: Do you consume snacks?
Options 1) Yes 2) No
Q: If you don’t consume snacks at present, would you like to try it in future
Options 1) Yes 2) No
Consumption Share of Snacks
Share of Potential Future Consumers
B D
C A
Yes
No
Yes
SNACKS MARKET IN INDIA 2013.PPT
No
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SAMPLE
Consumer Insights on Snacks (4/11) Q: What type of snacks do you prefer? Options 1) X 2) Y 3) Z
Q: If you consume both, which one do you prefer more?
Options 1) A 2) B
Consumption Pattern
Preference‐wise Share of ‘Both’ Category
% C
80
A
70
B
60
Y
50 40 30 20
A
10
X
B
0
X
Y
Both SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Import of Major Types of Snacks (1/2) A Snacks
Major Importing Nations – Value Wise (2011)
Volume
Value
INR mn
‘000 unit C
300
2,000
B
200 A 100
R Q
D
P 0 20__
20__
1,500
d
1,000
c
8,000
150
Q u
p
6,000
G
0 20__ __
H
F
20__ __
F
P
Value
E
U
C
b
‘000 unit
T
E
20__
INR mn
50
B
Major Importing Nations – Value Wise (2011)
Volume
100
D
a
0
B Snacks & Mixtures
200
e
500
S 20__
f
A
V
W
0
20__ __
S T
4,000 2,000
R
U
t s
r
q
20__ __
Note: HS Code 190190 (Food preparations based on malt extract – Salted Snacks ), HS Code 190410 (Prepared foods obtained by swelling or roasting of cereals – Packaged Snacks & Mixtures) SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Drivers & Challenges – Summary
Drivers Rapid Urbanization
Challenges Competitive Price Points
Growing Income and Consumption
Unorganized Sector and Local Players
Marketing Campaigns
Rise in Packaging Costs
Increasing Working Women i ki Population
Health Concerns
Growing Retail Market Convenience Factor
SNACKS MARKET IN INDIA 2013.PPT
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Trends – Summary
SAMPLE
Exhibition and X Product Y Corporate Activities i ii ` Key Trends
Inclusion of A as Snacking Option Launch of Various Q Snacks Innovative Promotional Campaigns Introduction of P Snacks d f k SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Competitive Benchmarking (1/5) Public Trading Comparables (FY 2012)
Company A
Company B
Market Capitalization (INR mn)
xx
xx
Share Price (INR)
xx
xx
EV/EBITDA (x)
xx
xx
EV/Revenue (x) /
xx
xx
PE Ratio
xx
xx
Note: Top 2 Public companies based on the Market Capitalization; Market Capitalization, Share Price is as on 5/04/2013 and PE ratio is as of 9/04/2013 SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE SSAMPLE
Competitive Benchmarking (2/5)
Key Ratios of Top 3 Companies – Operational Basis (FY 2011) (1/3) Operating Margin
%
Net Margin
40 30.39
30
21.73
20
11.04
10
7.30 2 49 2.49
1.41
0
Company A
Company B
CompanyC
• xx
SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Public: Domestic Company – Player A (1/5) Company Information Corporate Address
xx
Tel No.
xx
Fax No.
xx
Website
xx
Year of Incorporation
xx
Ticker Symbol
xx
Stock Exchange
xx
Offices and Centres – India
City A
Head Office
Products and Services Products and Services Category
Products/Services
Key People RTE Products RTE Products
xx
Other Food Products
xx
N Name
SNACKS MARKET IN INDIA 2013.PPT
D i ti Designation
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SAMPLE
Public: Domestic Company – Player A (2/5) Financial Snapshot i i lS h
K Key Ratios i
Total Income INR mn a
A
150
c
b
100
1000 500
INR mn
d
2000 1500
Particulars
Net Profit/Loss
B
D
C
50
0
0
2009
2010
2012
2011
Financial Summary • The company reported total income of INR 1585.4 mn in FY 2012, registering an increase of 19.7% over FY 2011 registering an increase of 19.7% over FY 2011 • The company earned an operating margin of 7.37% in FY 2012, a decrease of 3.31 percentage points over FY 2011 • The company reported debt to equity ratio of 0.32 in FY 2012, a decrease of 7.22% over FY 2011
Value (dd/mm/yyyy) XX
Total Enterprise Value (INR mn)
XX
EPS (INR) EPS (INR)
XX XX
PE Ratio (Abs)
2010
2009
14.80%
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 Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Interest costs (% of Sales)
‐3.31
7.37%
10.69%
11.63%
‐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% %
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 b i l i Interest Coverage Ratio
Key Financial Performance Indicators Indicators
2011
Cost Ratios
• The company incurred a net profit of INR 63.7 mn in FY 2012, as compared to net profit of INR 142.4 mn in FY 2011
Market Capitalization (INR mn)
y‐o‐y change 2012 (2012‐11)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved
SNACKS MARKET IN INDIA 2013.PPT
Decline
20
SAMPLE
Public: Domestic Company – Player A (3/5) Key Business Segments Traded Goods
Key Geographic Segments
Processed and Preserved Foods
100%
A
C
50%
B
D
E
F
India
Exports
100%
Q
S
50%
P
R
T
U
2009
2010
2011
2012
0%
0%
2009
2010
2011
2012
Business Highlights Description
News
Overview
• XX
SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Public: Domestic Company – Player A (4/5) Business Highlights Description
News
Global Presence
• XX
Quality Assurance Q y
• XX
E Expansions i
• XX
SNACKS MARKET IN INDIA 2013.PPT
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Public: Domestic Company – ITC Ltd. – SWOT Analysis (5/5)
SAMPLE
• xx
• xx
S
W
O
T
• xx
• xx
SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Strategic Recommendations (1/4) Product
• XX
Price
• XX
Place of Distribution Place of Distribution
Promotion
• XX
• XX
SNACKS MARKET IN INDIA 2013.PPT
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SAMPLE
Strategic Recommendations (3/4) A
O T H E R S T R A T E G I E S
B
• XX
• XX
C
• XX
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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)}
q y Debt to Equity
Total Liabilities / Shareholders E it 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 (N I / Sh h ld 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 + Sales / (Shareholders Equity + Total Debt)
Interest Costs (% of Sales)
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Sources of Information Secondary Research Print Medium
Primary Research Interviews
Leading Newspapers Leading Newspapers
Leading Industry Vendors 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
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