Food and Beverage Sector in India Monthly Update June 2013
Top Story Dabur forays into the functional beverage market of India Ghaziabad based FMCG major Dabur has entered the functional beverage market of India by extending the real brand of juices into yogurt drinks. Dabur has been operating in the packaged 100% fruit juice market with Real Activ but recently Dabur has extended its portfolio to the dairy segment. 1lt and 200ml packs would be priced at INR 105 and INR 25 respectively. The range is initially being introduced in the metros like Delhi, Mumbai, Pune and Bangalore and will be rolled out nationally in the next phase. The company has been emphasizing on the pricing strategies to make the functional beverages affordable to the masses.
News Update General India's wheat exports secure $300.10 per ton in international market, good news for the country’s economy The Food Corporation of India (FCI) said Indian wheat exports fetched a price of $300.10 per ton in the international market, according to the last tender opened. The latest lot up for sale crossed the July future price of the Chicago Board of Trade (CBOT) of $260 per ton. FCI has exported about four million ton (MT) of wheat so far, securing an average of $311.69 per ton. After a long gap, the government allowed the export of 4.5 million ton of wheat this year, because the production increased and there was excess stock of wheat in the country. Between 2002 and 2004, India exported it on a commercial basis, but prices were not so attractive. This is a boost to the country’s international trade. India to Implement Standards for Street Food, a government initiative which would make street food more hygienic For the first time, street food vendors in India will soon be required to meet a set of sanitation regulations, announced the government. Street food is a popular option in India because it is convenient and cheaper than food available at hotels and restaurants. But many say that it is also unsafe. One study found that, out of 50 random samples of street food taken in 2010, 47 of them – approximately 90 percent ‐ were contaminated with food borne pathogens. Cooked foods were no exception, suggesting mishandling after preparation. Now BIS has finalized a set of basic sanitation requirements for the preparation and sale of street foods. Food and Beverage – Monthly Update
SVA India launches Soursop Juice, which helps fight lifestyle diseases Mumbai based SVA India has launched Soursop Juice, a product under the MO Fruit banner. The juice has the natural qualities for thwarting all prevailing lifestyle diseases and preventing illnesses. The fruit contains natural sedative properties for insomnia, rich fiber content treating bowel movement difficulties along with having anti‐ diabetic properties which helps regulate blood sugar. The fruit is said to help battle diseases through the annonaceous acetogenins compound found in it, which kills cancer cells. The food and beverages sector is seeing new additions almost every month. The fruit’s leaves relieve pain and inflammation, compounds reduce blood pressure controlling hypertension, iron helps prevent anemia, and moisture in the fruit fights UTI as well as large quantities of vitamin C, which deal with cold, fever and migraines. Beltek Canadian takes a new leap in the beverages market of India with launch of Wild Vitamin Water across India Delhi based Beltek Canadian Water Ltd., a leader in the business of bulk water in Delhi / North Capital Region (NCR), has now made available Wild Vitamin Water in 2,000 stores across the country. This is a new addition to the food and beverages market in India. It was initially launched in Delhi in Nov 2012 in 3 flavors, comprising of Tropical Citrus Flavored Energize, Lemon Flavored Reload and Dragon Fruit Flavored Immunity at a price of INR 70. The beverage is claimed to be the first‐of‐its‐kind as it provides essential vitamins and hydration for summer months. The food and beverages market is a growth oriented market in India. Barista Lavazza launches new range of summer snacks, desserts & drinks New Delhi based cafe chain Barista Lavazza has launched a new range of snacks, desserts and beverages to beat the heat. The new menu provides a blend of colors, flavors, ingredients, spices and sizes. For the first time, the cafe has also introduced pitchers for its range of cold coffees and beverages. Barista Lavazza's range of food items include sandwiches including the Garbanzo Pocket (laminated dough stuffed with masala‐flavoured Garbanzo, topped with mozzarella cheese). The cafe's dessert menu includes the Californian Prune Muffin (a tea‐ time muffin stuffed and topped with prunes); the Choco Chip Muffin (a muffin stuffed with chocolate chips and chocolate, topped with crunchy rice flakes). Some existing classics like Barista and Iced Latte have been reworked to make low‐calorie versions containing Sweetwell, a zero‐calorie sweetener from Belgium. Barista Lavazza has been doing well in the food and beverages market of India for the last few years. The food and beverages market has seen new additions in this summer. Carlsberg India launches fruit flavored strong beer Carlsberg India, a unit of Denmark‐based Carlsberg Group launched a fruit‐flavored strong beer in its Tuborg Strong brand that is positioned for younger consumers. Tuborg Booster Strong is priced at INR 105 for a 500ml can and INR 135 for 650ml bottle and enriched with natural fruit flavor that reduces bitterness and gives a smooth after taste. Food and Beverage – Monthly Update
The company claimed that Tuborg Booster Strong is the first fruit‐flavored strong beer in the Indian market. This is another interesting addition in the food and beverages market. The product has been launched in Kolkata and Mumbai and would be rolled out in a phased manner in major cities like New Delhi, Bengaluru, Pune, Hyderabad, Nagpur and Bengaluru. Yogurberry opens 200sq ft store in R 45 in Greater KailashI, New Delhi Korea based global frozen yogurt major Yogurberry recently opened a new‐format outlet covering an area of 200sq ft at R 45 in New Delhi's Greater Kailash 1, New Delhi. The store offers customers a new model, allowing them to create their own combinations on Tuesday and Thursdays. These will be priced at INR 75. The company claimed that people looking for a meal which is healthy but does not compromise on taste could visit the store between 10am and 1pm. This slot has been named the Daily Parfait Mornings. The meals are priced at INR 149, inclusive of taxes. The yogurt section has been a new addition to the food and beverage sector in the past few years. Dabur India Ltd launches Réal SupaFruits, new subbrand of fruit juice Ghaziabad based Dabur India Ltd, announced the launch of Réal SupaFruits, a new sub‐brand in its packaged fruit juice category. This is for the first time that Superfruit juices are being launched for Indian consumers. A superfruit is a special category of fruit, which are nutrient dense and rich in antioxidants. This new range is priced at INR 105 for one litre. The range is being launched with two variants. Superfruit and their juices already enjoy great popularity all over the world and are now available for the benefit of Indian consumers with Réal SupaFruits. With Réal SupaFruits, Indian consumers will experience fruit like strawberry and gojiberry for the first time in the form of a juice. Nutrients rich beverages are a new addition to the food and beverage market. Cafe Coffee Day to add 500 outlets by 2015, good news for the beverages sector Bangalore based coffee chain Cafe Coffee Day (CCD) said that it will open over 500 outlets by 2015 to take its total network to 2,000 outlets as part of a pan‐India expansion program. The company will set up outlets based on the three formats ‐‐ cafe, lounge and square ‐‐ which it currently operates. At present, CCD has 1,497 outlets, out of which three are in square format, 47 in lounge and rest in cafe formats. All these are company owned. The chain positions its cafe outlets as mass segment while lounge are for slightly more affluent customers. The food and beverage sector has seen immense growth in the last few years. Godrej Tyson Foods introduces Real Good Yummiez Chicken Kheema Paratha, Godrej’s foray into the frozen food category in India Godrej Tyson launched Real Good Yummiez Chicken Kheema Paratha, the first of its kind in the frozen food category in India. The foray into chicken kheema paratha is aimed at Food and Beverage – Monthly Update
extending the brand across various categories, therefore strengthening it. With poultry being favorably placed in the years to come as the answer to India's protein requirements, Godrej Tyson is working hard on the challenge of addressing availability of good‐quality protein through its products. Although the product is currently being offered at an inaugural price of INR 75 per 320g pack, it will be sold at the price point of INR 97 per 320g pack. It will be available at all leading retail stores in over 50 cities across India. Yummiez has established a strong presence in the frozen ready‐to‐cook category. It has a range of vegetarian meals, including Vegetarian Masala Nuggets, Cheese Corn Nuggets and Vegetarian Cheese Fingers. Besides Chicken Kheema Paratha, its non‐vegetarian range includes Chicken Popcorn, Chicken Punjabi Tikka, Chicken Seekh Kabab, Chicken Garlic Fingers, Chicken Nuggets, Cheese and Onion Sausages and Classic Salami. MonaVie One introduces Ragi Meal, Broken Wheat Meal, Basmati Khitchree MonaVie recently launched three new additions to their MonaVie One range of heat‐and‐eat foods – Ragi Meal, Broken Wheat Meal and Basmati Khitchree. MonaVie One Ragi Meal is made from finger millet, a source of protein, fibre, calcium, iron and other minerals. Broken Wheat Meal combines seeds, cereals, pulses and legumes. Broken wheat, being a whole‐grain cereal, helps in weight management, decreases the rate of metabolic syndrome and helps lower the risk of high cholesterol and high blood pressure. Basmati Khitchree is a combination of cereal (basmati rice), legumes (such as moong dal, tur dal and Bengal gram) and spices. It is a source of protein and carbohydrates for energy. It contains a negligible amount of fat and is free from gluten. Industry Expert Speak Soursop juice to focus on health Raghav Gupta, Director SVA India Ltd “Keeping in mind all the lifestyle ailments and harmful diseases in modern society, we are launching our Soursop Juice in India to help people fight diseases and achieve overall health. I am very excited to see the response our products will generate.” Barista Lavazza to focus on customer preference‐ Nilanjan Bhattacharya, CEO, India and the South Asian Association for Regional Cooperation, Barista Lavazza “Since inception, we have always believed in delivering the best experience and products to our consumers. As a brand, we have grown with our patrons and understood their evolving tastes and offered them the real Italian coffee experience.”
Food and Beverage – Monthly Update
Transactions (Apr 2013 – Jun 2013)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
27th Jun, 2013
Cargill India
Edible Oil Brands
300‐1000
51%
Pending
M&A
17th Jun, 2013
United Spirits
Morgan Stanley Asia (Singapore) PTE
5565.60
N.A.
Completed
PE
5th Jun, 2013
Ruchi Soya Industries
J‐Oil Mills & Tsusho Corporation
N.A.
51%
Pending
JV
26th Apr, 2013
Sarona Asset Management and SEAF Agribusiness
Khyati Foods Ltd.
149.2
N.A.
Completed
PE
10th Apr, 2013
Herba Foods Ltd.
Taraori Rice Mills
772.8
100%
Completed
M&A
4th Apr, 2013
Hassad Food Company
Bush Foods Overseas Pvt. Ltd.
5,329.4
51%
Completed
M&A
Annual Financial Results – Revenue (INR mn) Companies
FY ‘10
FY ‘11
FY ‘12
FY ‘13
Amrit Corp Ltd.
363.465
454.271
541.076
798.805
Anik Industries Ltd.
12,232.80
12,766.20
16,077.0
12606.8
Balrampur Chini Mills Ltd.*
N.A.
19,843.80
23,095.50
32,748.40
Bannari Amman Sugars Ltd.
8,783.20
8,267.70
11,841.10
13,358.70
Food and Beverage – Monthly Update
Britannia Industries Ltd.
37,748.60
35,931.10
54,635.30
61,359.10
Dabur India Ltd.
33,958.00
41,045.10
53,054.20
61,761.20
Dhampur Sugar Mills Ltd*
15,015.30
17,794.52
15,375.20
13,526.50
Godrej Industries Ltd.
36,112.10
44,989.50
57,100.30
68,218.0
Hatsun Agro Products Ltd.
11,415.60
13,557.30
16,035.40
21,536.80
Heritage Foods (India) Ltd.
9,003.80
10,960.90
13,934.10
16,060.10
Hindustan Unilever Ltd.
180,319.30
200,225.50
234,363.30
263,171.50
IFB Agro Industries Ltd.
2,906.74
4,499.80
5,846.29
4,513.80
ITC Ltd.
191,358.70
225,747.00
265,249.70
316,270.10
Kwality Dairy India Ltd.
10,541.25
16,080.40
24,162.30
27,494.30
Marico Ltd.
26,607.60
31,349.30
40,082.80
45,843.50
Nestle India Ltd
62,609.40
74,994.60
83,164.90
85,171.20
Radico Khaitan Ltd.
8,355.50
9,464.20
11,438.70
12,172.80
Ruchi Soya Industries Ltd.
143,926.30
181,833.40
302,699.40
298,079.20
Shree Renuka Sugars Ltd.*
77,002.51
86,623.00
88,876.03
103,576.00
Tata Coffee Ltd.
12,896.27
13,013.61
15,490.00
16,611.10
United Spirits Ltd.
63,623.10
73,761.90
91,864.90
105,979.90
Venky's (India) Ltd.
7,054.70
8,517.60
9,902.90
14,264.30
* Change in Financial Year Ending
Annual Financial Results – Income (INR mn) Food and Beverage – Monthly Update
Companies
FY ‘10
FY ‘11
FY ‘12
FY ‘13
Amrit Corp Ltd
25.956
186.756
950.775
85.938
Anik Industries Ltd.
110.60
100.90
132.40
106.60
Balrampur Chini Mills Ltd.*
N.A.
1,084.60
4.30
1,613.00
Bannari Amman Sugars Ltd.
1,436.30
530.60
1,056.70
1,424.90
Britannia Industries Ltd.
1,031.80
1,343.50
1,995.50
2,595.0
Dabur India Ltd.
5,010.80
5,685.70
6,448.90
7,634.20
Dhampur Sugar Mills Ltd*
‐473.10
‐119.90
296.30
391.50
Godrej Industries Ltd.
2,032.50
2,933.90
2,916.10
3,911.80
Hatsun Agro Products Ltd.
27.90
187.50
266.00
446.7
Heritage Foods (India) Ltd.
55.10
11.10
91.80
499.50
Hindustan Unilever Ltd.
21,566.30
22,960.50
27,906.60
38,289.80
IFB Agro Industries Ltd.
44.20
178.20
265.50
262.0
41,681.80
50,179.30
62,581.40
76,080.70
179.50
459.40
923.50
1,067.0
Marico Ltd.
2,316.70
2,864.40
3,171.10
3,958.60
Nestle India Ltd
8,186.60
9,615.50
10,679.30
10,712.90
415.40
728.00
636.60
772.80
Ruchi Soya Industries Ltd.
1,749.00
2,251.70
869.20
2,732.30
Shree Renuka Sugars Ltd.*
7,034.10
‐3,030.00
‐1,498.20
‐3,740.00
ITC Ltd. Kwality Dairy India Ltd.
Radico Khaitan Ltd.
Food and Beverage – Monthly Update
Tata Coffee Ltd.
343.20
725.60
811.90
1,162.30
United Spirits Ltd.
‐227.10
5,695.20
1,879.20
‐1,012.40
Venky's (India) Ltd.
539.10
730.30
410.60
247.80
OctDec 2012
JanMar 2013
* Change in Financial Year Ending
Quarterly Financial Results – Revenue (INR mn) Companies
AprJun 2012
JulSep 2012
Amrit Corp Ltd
140.938
234.693
234.995
Anik Industries Ltd.
3174.9
3001.7
2,924.80
N.A.
N.A
N.A
3,625.3
2,980.3
3,383.6
N.A.
N.A
N.A
N.A
Dabur India Ltd.
14,620.0
15,372.2
16,307.2
15,608.30
Dhampur Sugar Mills Ltd
3,496.8
3,351.4
3,156.6
Godrej Industries Ltd.
17,889.3
19,461.2
16,805.9
Hatsun Agro Products Ltd.
4,897.1
5,284.0
5,677.8
Heritage Foods (India) Ltd.
4,080.3
3,975.9
3,874.8
4,129.1
Hindustan Unilever Ltd.
N.A.
N.A
N.A
N.A
IFB Agro Industries Ltd.
1262.8
1,429.3
1,011.3
Balrampur Chini Mills Ltd. Bannari Amman Sugars Ltd. Britannia Industries Ltd.
185.762 3,505.4 N.A 3,391.1
3,521.7 14,061.6 5,934.5
835.9
Food and Beverage – Monthly Update
ITC Ltd.
N.A.
N.A
N.A
N.A
Kwality Dairy India Ltd.
8,152.1
N.A
N.A
N.A
Marico Ltd.
12,672.1
11,558.9
11,639.9
9,972.6
19,865.8 3,038.3
21,155.9 2,881.0
21,668.8 3,175.9
22,480.8 3,207.5
Nestle India Ltd Radico Khaitan Ltd. Ruchi Soya Industries Ltd.
N.A.
N.A
N.A
N.A
Shree Renuka Sugars Ltd.
N.A.
N.A
N.A
N.A
Tata Coffee Ltd.
4,077.4
4,705.3
4,083.9
4,106.9
United Spirits Ltd.
24,343.0
28,629.0
28,391.0
24,616.9
Venky's (India) Ltd.
3,147.8
3,348.4
3,492.2
4,275.9
Quarterly Financial Results – Income (INR mn) Companies Amrit Corp Ltd Anik Industries Ltd. Balrampur Chini Mills Ltd.
Bannari Amman Sugars Ltd.
AprJun 2012 932.833 20.7 N.A. 282.0
JulSep 2012 30.83 18.8 1,084.60 501.7
OctDec 2012 25.166 15.4 4.30 379.8
JanMar 2013 0.192 51.8 1,613.00
261.40
Food and Beverage – Monthly Update
Britannia Industries Ltd. Dabur India Ltd. Dhampur Sugar Mills Ltd Godrej Industries Ltd. Hatsun Agro Products Ltd. Heritage Foods (India) Ltd. Hindustan Unilever Ltd. IFB Agro Industries Ltd. ITC Ltd.
1,031.80
1,343.50
1,995.50
1,494.0 64.1 414.5 139.0 84.5
2,023.7 108.0 766.2 96.6 144.8
2,111.1 53.3 1,794.4 105.5 121.6
21,566.30 54.4
22,960.50 97.3
27,906.60 70.3
N.A. 2,005.5 166.1 936.7 60.8 148.7 38,289.80 40.0
41,681.80
50,179.30
62,581.40
76,080.70
179.50
459.40
923.50
N.A.
1,238.4 2,459.7 211.2
858.7
1,022.9
838.6
2,673.1 220.6
2,789.2 183.8
2,790.9 157.2
Ruchi Soya Industries Ltd.
1,749.00
2,251.70
869.20
N.A.
Shree Renuka Sugars Ltd.
7,034.10
‐3,030.00
‐1,498.20
N.A.
Kwality Dairy India Ltd.
Marico Ltd.
Nestle India Ltd Radico Khaitan Ltd.
Tata Coffee Ltd. United Spirits Ltd. Venky's (India) Ltd.
281.8 ‐394.0 201.3
368.5 2,050.0 23.1
259.8 1,388.0 143.2
252.2 ‐4,056.4 166.6
Food and Beverage – Monthly Update
Research on India (ROI) is a leading source for market research on various sectors in India that offers premium research content from worldwide publishers of market research reports. Contact us: W: www.researchonindia.com T: India (Toll Free): 1800 102 1133; International: +91 (33) 4027 6214/5 E: support@researchonindia.com Connect with Us Disclaimer: This monthly update is published for general information only based on press articles and company releases. Research on India has not independently verified any of information and is not responsible for any loss or damage arising from use of this document.
Food and Beverage – Monthly Update