Wine Market – India February 2015
Executive Summary Market Overview
Drivers & Challenges
Trends
Wine industry is one of the growing sectors in India that has attracted a number of players Increasing disposable income and changing lifestyle have contributed to its rising demand Sale of wine touched 5.1 mn liters in 2013-14 from 1.31 mn liters in 2007-08
Drivers
Challenges
Rising Income Levels Young Population and Low Penetration Growth in Organized Retail Changing Lifestyles and Perceptions Growing Awareness towards International Brands
Presence of Substitutes Variance in State-level Policies Advertising Ban on Alcohol Inconsistent Quality
Introduction of New Flavors Promotional Wine Events Growing Number of Wine Clubs
SAMPLE 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 Global India
•Market Segmentation •Export and Import •Drivers & Challenges •Trends •Competitive Landscape •Consumer Insights •Strategic Recommendations •Appendix WINE MARKET IN INDIA 2015.PPT
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Top 5 countries represent 50% of the world’s vineyard area Global Wine Market – Overview (1/4) Vineyard Area – Top 5 Countries in Million Hectares (2013) mha
Spain
France
World’s Total Vineyard Surface Area
Italy
China
Turkey
SAMPLE
mha
• Text
x
0 2000
2013
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While the vineyard surface area is decreasing, grape production has been increasing Global Wine Market – Overview (2/4) Continental Evolution as % of Global Production (2000 – 2013)
%
a b
c d
Europe
Asia
Growth in World Grapes Production
America
Africa
SAMPLE
mql
• Text
y
2012
2013
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80% of world’s wine is produced by 10 countries Global Wine Market – Overview (3/4) Top 10 Wine Producing Countries (2014) %
France
USA
Spain
Germany
Growth in World Wine Production
Italy
China
Chile
Argentina
South Africa
Australia
SAMPLE
mhl
• Text
x
2013
2014e
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Increase in global trade over the past 20 years has resulted in a shift in wine consumption patterns Global Wine Market – Overview (4/4) Percentage Shift in Wine Consumption Geography 2000
• Text
2013 United States of America
United States of America
Asia
Asia
Europe
Europe
Africa
Africa
Others
Others
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Wine market in India is witnessing significant growth Indian Wine Market – Overview (1/3) Sale of Wine in India (Volume)
mn Liters
Sale of Wine in India (Value)
INR bn x
2007-08
• Text
y
2013-14
2007-08
2013-14
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Awareness among farmers has increased manifold, resulting in the cultivation of wine grapes Indian Wine Market – Overview (3/3) Grape Growing States – Area (2013-14)
Grape Growing States – Production (2013-14)
Maharashtra
Tamil Nadu
Mizoram
Maharashtra
Tamil Nadu
Mizoram
Karnataka
Andhra Pradesh
Others
Karnataka
Andhra Pradesh
Others
76.3%
• Text
82.5%
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Red wine is the leading segment in the Indian wine market Indian Wine Market – Segmentation (1/2) Indian Wine Consumption – Segmentation (2013) Red Wine
White Wine
Expected Wine Consumption in mn Cases (2017e)
Rose Wine
Red Wine
• Text
White Wine
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Booming retail sector provides opportunity for players to distribute their products efficiently Growth in Organized Retail
Impact
• Text
SAMPLE Growth in Share of Organised Retail in India Organized Retail Unorganized Retail
2011-12 WINE MARKET IN INDIA 2015.PPT
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Variance in state level policies and expensive tax structure poses a huge challenge for players Variance in State-level Policies
Impact
• Text
SAMPLE Percent of Total Tax Cost in the Final Cost in Different States (2013) %
Maharashtra
Goa
Karnataka
Kerala
Tamil Nadu
Andhra Rajasthan Pradesh
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Punjab
West Bengal 12
Porter’s Five Forces Analysis
Threat of New Entrants
Impact Low
• Text
Impact High
Impact Medium
Bargaining Power of Suppliers • Text
Impact Low
Competitive Rivalry
Bargaining Power of Buyers
• Text
• Text
Impact High Threat of Substitutes ‘ • Text
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Public: Foreign Company – ABC (1/5) Company Information
Offices and Centres – India
Corporate Headquarter Tel No. Fax No. Website Year of Incorporation Head Office
Ticker Symbol Stock Exchange
Products and Services Category
Products/Services
Key People Name
Designation
Wine
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Public: Foreign Company – ABC (2/5) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
INR mn
INR mn
20,000 0 -20,000 -40,000 -60,000
0 2011
2012
2013
2014
• The company incurred a net loss of INR mn in FY 2014, as compared to net loss of INR mn in FY 2013 • The company reported total income of INR mn in FY 2014, registering an increase of over FY 2013 • The company earned an operating margin of in FY 2014, a decrease of percentage points over FY 2013 • The company reported debt to equity ratio of in FY 2014, an increase of percentage points over FY 2013
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
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
Key Financial Performance Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
y-o-y change (2014-13)
Return on Assets Return on Fixed Assets
Financial Summary
Indicators
Particulars
Value (21/11/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
15
Public: Foreign Company – ABC (3/5) Key Business Segments
Key Geographic Segments
Manufacture, Purchase and Sale of Beverage Alcohol
India
Outside India
%
% The company has been in this sector for the last four years
2011
2014
2012
2013
2014
Business Highlights (1/2) Description
News
Overview
• Text
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Public: Foreign Company – ABC (4/5) Business Highlights (2/2) Description
News
Brands
• Text
Global Presence
• Text
Distribution
• Text
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Public: Foreign Company – ABC– SWOT Analysis (5/5)
• Text
• Text
S
W
O
T
• Text
• Text
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Private: Domestic Company – ABC (1/5) Company Information
Offices and Centers – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category
Products/Services
Key People Wine
Name
Designation
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Private: Domestic Company – ABC (2/5) Shareholders of the Company
Ownership Structure Foreign holdings
Name
No. of Shares held
Bodies corporate Other top fifty shareholders
Total Ownership structure corresponds to Date of AGM: 30/09/2013
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Private: Domestic Company – ABC (3/5) Financial Snapshot Total Income
Key Ratios Particulars
Net Profit/Loss INR mn
INR mn
150 100
2011
2012
2013
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
50
Return on Working Capital
0
Return on Assets Return on Fixed Assets
Cost Ratios
2014
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Financial Summary • The company earned a net loss of INR mn in FY 2014, as compared to net profit of INR mn in FY 2013
Liquidity Ratios
• The company reported total income of INR mn in FY 2014, registering an increase of over FY 2013
Leverage Ratios
• The company earned an operating margin of in FY 2014, an decrease of percentage points over FY 2013 • The company reported debt equity ratio of in FY 2014, a decrease of over FY 2013
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: Domestic Company – ABC (4/5) Business Highlights Description
News
Overview
• Text
Vineyard
• Text
Partnerships
• Text
International Distributors
• Text
SAMPLE
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Private: Domestic Company – ABC – SWOT Analysis (5/5)
• Text
• Text
S
W
O
T
• Text
• Text
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Consumer Insights on Wine (2/4) Gender Wise Age Split
Gender Wise Age Split – Male
Male
18-25
Female
26-30 31-35 36 and above
SAMPLE Gender Wise Age Split – Female
Age Wise Purchasing Power – 18-25
18-25
>INR 2,000
26-30
INR 1,500-2,000
31-35
INR 1,000-1,500
36 and above
INR 500-1,000 Less than INR 500
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Consumer Insights on Wine (3/4) Age Wise Purchasing Power – 26-30
SAMPLE Age Wise Purchasing Power – 31-35
>INR 2,000
>INR 2,000
INR 1,500-2,000
INR 1,500-2,000
INR 1,000-1,500
INR 1,000-1,500
INR 500-1,000
INR 500-1,000
Less than INR 500
Age Wise Purchasing Power – 36 and Above
Type Wise Popularity
>INR 2,000
Red wine
INR 500-1,000
White wine Sparkling Wine Rose Wine others
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Consumer Insights on Wine (4/4) Other Insights • Text
• Text
SAMPLE
• Text
• Text
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Strategic Recommendations Government Support • Text
Development of Infrastructure
• Text
SAMPLE
Partnership within the Community
• Text
Preservation of a Healthy Environment
• Text
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