Food and Beverage Sector in India Monthly Update September 2012
\
Top Story Parle introduces ‘Londonderry’ Parle Products, the company which is India's largest biscuit, confectionery and snacks manufacturer has come up with its latest offering ‘Londonderry’, the premium lacto candy. This mouth melting lacto candy will be rich in caramel and milk, adding superiority to its taste. The product will be available at all the retail outlets at an affordable price. The main target consumers of this product are the children and the teenagers. Keeping them in mind, the company has focused on the packaging part as well by giving the product a glamorous look to enhance the product’s premiumness. Moreover, the company will also go for extensive media campaigns such as television campaigns (TVC), online media campaigns along with on ground activities to promote the product. The Indian confectionary market is growing at a rapid phase, with more and more companies coming up with newer and innovative products, the market is becoming competitive as well. So, providing a premium lacto candy, at an affordable price is surely going to attract the attention of the consumers in this highly cluttered premium confectionary segment. News Update
General
PepsiCo launches new flavours of Kurkure PepsiCo, the global food and beverage player has come up with new variants of its popular salty snack ‘Kurkure’. The new flavours introduced are ‘Kurkure Puffcorn’ and ‘Kurkure Monster Paws’. With these two new launches, the company expands its Kurkure brand to a total range of seven flavours. The current competitors of Kurkure include the well known salty snack brands ITC and Haldirams. To promote the newly launched flavours, the company has planned to go for 360 degree advertising via digital, television and on ground engagements. Healthy products launched by Parag Milk Parag Milk Foods Pvt. Ltd, a well known player of the Indian dairy industry has come up with two new variants of natural and zero preservative UHT milk. The newly launched products are ‘Go Milk’ and ‘Go Slim’. These products are of ready‐to‐drink format which is safe for drinking even without boiling.
Food and Beverage – Monthly Update
\
The price has been fixed at INR 45 per litre for the product Go Milk and INR 50 per litre for Go Slim. In addition to these new launches, the company has other expansion plans for its Go and Gowardhan range of dairy products. The company is focusing on enhancing the reach and availability of its products to its wide range of consumers living in remote areas as well, in addition to the urban consumers. Flavoured yoghurt by Britannia enters the market The well known manufacturer of biscuits, bakery and dairy products, Britannia Industries Ltd. Has recently launched a range of flavoured yoghurts. The yoghurts will be available in three flavours ‐ mango, vanilla and strawberry. Moreover, it will be fortified with five active nutrients namely vitamin A, iron, iodine, calcium and zinc. The product will have a shelf life of 18 days when stored in a cold environment. This product has been launched particularly targeting the young consumers who like to experiment with healthy products. The product is available in a scoop and eat format. All the variants will be available at a price of INR 15 for a 100 gm pack. As of now, it will be launched at Mumbai, Delhi, Bangalore, Hyderabad and Chennai. Riso rice bran oil launched by Kamani Kamani Oil Industries Pvt. Ltd. has introduced new rice bran oil under the brand name ‘Riso’. Rice bran oil is healthy edible oil which has value‐added products produced from rice bran that keeps the heart healthy. It contains oryzanol, a natural antioxidant which helps to reduce cholesterol and tryglicerides. The oil is produced by latest techniques of physical refining and is completely bland and odourless. It is suitable for any type of cooking and retains the natural taste and flavour of the food cooked in it. Moreover, it is rich in MUFA (Monounsaturated Fatty Acids) and can be re‐used without losing its nutritive value. The company has planned to launch the product in the western India first and later on spread it across the nation. As of now, the product will be launched in Maharashtra which will be followed by Gujarat and Rajasthan. The company has planned of investing INR 200 mn for the next three years on this brand. CocaCola’s energy drinks get green signal in India Coca‐Cola Company, the world known beverage manufacturer finally got the approval from the Indian authorities for manufacturing and selling energy drinks in India. Till now, the company’s energy drink brand burn was being imported from Malaysia. The Ministry of Health and the Food Safety Standards Authority of India (FSSAI) were the two governing bodies who gave this approval to Coca‐Cola. Recently in the month of June, the company announced about infusing an amount of INR 158.3 bn by 2020 for capturing the fast growing read‐to‐drink non‐alcoholic beverage market of India. At present, the competitors of Coca‐Cola’s energy drink brand include Red Bull, Power Horse and Cloud 9. Food and Beverage – Monthly Update
\
Readytoeat products launched by DSR Directorate of Sorghum Research (DSR), Hyderabad has come up with jowar based processed foods after years of research. These products have been developed as a part of commercialization to boost jowar production and consumption. The various products include jowar multi‐grain atta; jowar vermicelli; jowar biscuit; jowar suji/rawa; jowar flakes; jowar pasta and jowar roasted flakes. The products are being launched under the brand name DSR‐Eatrite. They will be primarily marketed via Heritage Fresh retail outlets, Choupal Fresh (ITC) along with unorganised retail stores in Hyderabad. In addition to this, DSR has also entered into a MoU with Britannia to work jointly on R&D on bakery and biscuit products of jowar for a period of three years.
News Update Regulatory
MoFPI ties up with developed nations to boost food processing industry The Ministry of food processing industries (MoFPI) has recently entered into a pact with some developed nations such as Germany and France for boosting the food processing sector. Under this bilateral agreement, the ministry will focus on improving various segments of the food processing industry including fruits and vegetables. In addition to this, some other pacts between the department of agriculture & cooperation and countries such as USA, France, Canada, the Netherlands, Argentina, Austria, and Brazil for development of agriculture sector has also taken place. Moreover, for developing the food processing sector of African countries under the framework of India Africa Forum Summit‐II, MoFPI has planned of developing one food processing cluster, five food testing laboratories and five food processing business incubation centres in Africa.
News Update Expansion Plans
Cadbury to set up factory in Uttarakhand Cadbury India, the Kraft‐owned chocolate company is on the verge of setting up a new factory in Uttarakhand. For this, the company has already started looking for suitable
Food and Beverage – Monthly Update
\
plots across the state for setting up the new manufacturing plant and will finalize the deal within the next quarter. At present, the company has six manufacturing plants across the country which are located at Thane, Induri (Pune), Malanpur (Gwalior), Bangalore, Baddi and Hyderabad. The manufacturing plant at Baddi is the biggest among all of them and it manufactures around 70% of the company’s total products. This new plant in Uttarakhand will be as big as the Baddi plant. Tata group plans expansion for brand ‘Himalayan’ Tata Global Beverages Ltd (TGBL) is planning expansion for its ‘Himalayan’ mineral water brand. It wants to penetrate the market deeply and increase its reach and availability in untapped areas as well. Currently, the premium mineral water brand is available at 2000 outlets across the nation and the company is making plans to expand its retail distribution network further. For this, the company may enter into certain tie‐ups to push the brand into new territories. At present the company has a 50:50 joint‐venture with PepsiCo called NourishCo, which has a brand licensing agreement with the Tata Group for marketing the Himalayan brand. McDonald's vegetarian outlet at Vaishno Devi World's second‐largest restaurant chain, McDonald's has planned to open its first pure vegetarian outlet at the foothills of the Vaishno Devi shrine at Katra in Jammu & Kashmir next year. After this, the company will also open another vegetarian outlet near Golden Temple, Amritsar. India is a nation with many religious tourist spots but, most of them lack proper organized restaurants to serve the pilgrims. Moreover, demand for vegetarian food is high in these regions. All these factors have led McDonald to take the decision of opening vegetarian outlets. For this, the company has signed up a property at Katra and opened its first outlet in Jammu for strengthening its supply chain base. Industry Expert Speak New flavours of Kurkure launched – Nalin Sood, Director, PepsiCo India Foods "These introductions will help PepsiCo ensure that it grows ahead of the category and are in line with its strategy of remaining at the forefront of product innovation," Healthy product launched by Parag Milk – Devendra Shah, Chairman, Parag Milk Foods Pvt. Ltd,
Food and Beverage – Monthly Update
\
"The key objective in entering the UHT milk space is to cater to the growing needs of young consumers, who seek safety, nutrition & convenience. Increasing urbanisation and working women profile will increase the demand for safe, convenient and ready‐to‐ drink milk in India. With UHT milk being safe and ready‐to‐drink ‐ without the need of boiling, its popularity among urban households is expected to increase significantly in the near future." Vaishno Devi to witness new McDonald’s outlet – Vikram Bakshi, Manager, McDonald's restaurants (East and North India) "Every time I go there, my resolve (to open a restaurant there) becomes stronger"
Transactions (JulSep 2012)
Date
Buyer
20th Sep 2012
N.A.
20th Sep 2012 18th Sep 2012
Future Ventures India Ltd. IDFC
Target Maiyas Beverages And Food ‐ Fund Raise Express Retail Services Pvt. Ltd. Parag Milk Foods Pvt. Ltd. Kolhapur Sugar Manufacturing Plant
Size (INR mn)
% stake
Deal Status
Type of Transaction
1060
N.A.
Pending
PE
613.5
100%
Completed
M&A
1,550.00
15‐20%
Pending
PE
N.A.
N.A.
Pending
M&A
22nd Aug 2012
Dalmia Bharat Sugar & Industries Ltd.
21st Aug 2012
GTI Capital
Brattle Foods Pvt. Ltd.
N.A.
N.A.
Completed
PE
17th Aug 2012
Tata Global Beverage Ltd.
SuntyCo Holding Ltd.
N.A.
100%
Completed
M&A
16th Aug 2012
Dalmia Bharat Sugar & Industries Ltd.
Actis
80.70
6%
Completed
PE
14th Aug 2012
N.A.
1,000.00
N.A.
Pending
PE
31st Jul 2012
Sahara Group
31,579.80
75%
Pending
M&A
27th Jul 2012
Ambit Pragma Ventures
N.A.
74%
Completed
M&A
21st Jul 2012
A2Z Excursions
600‐800
100%
Pending
M&A
Future Supply Chain Solutions Ltd. ‐ Fund Raise Elad Properties and Kingdom Holdings Co. Mehta Frozen Foods Carrier Pvt. Ltd. Navis Capital Partners (Nirula's Group)
Food and Beverage – Monthly Update
\
Annual Financial Results – Revenue (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
Anik Industries Ltd.
10,209.80
12,232.80
12,788.30
16,075.70
Asia Pacific Breweries Ltd.
68,271.70
85,863.50
112,062.40
130,099.30
Balrampur Chini Mills Ltd.*
17,551.00
N.A.
19,843.80
23,095.50
Bannari Amman Sugars Ltd.
6,963.60
8,783.20
8,255.40
11,795.10
Britannia Industries Ltd.
34,212.30
37,748.60
45,931.10
54,635.30
Dabur India Ltd.
28,122.4
33,958.0
41,045.1
53,054.2
Dhampur Sugar Mills Ltd*
9,473.6
15,015.3
17,794.5
15,375.2
Godrej Industries Ltd.
36,121.3
37,080.5
44,989.5
57,100.3
Hatsun Agro Products Ltd.
10,135.7
11,415.6
13,557.3
16,035.4
Heritage Foods (India) Ltd.
7,967.5
9,003.8
10,960.9
13,768.5
Hindustan Unilever Ltd.
166,639.8
180,319.3
200,225.5
234,363.3
ITC Ltd.
165,561.4
191,358.7
225,747.0
265,517.9
Kwality Dairy India Ltd.
5,828.0
10,541.2
16,080.4
23,894.8
Marico Ltd.
23,884.2
26,607.6
31,349.9
40,082.8
Radico Khaitan Ltd.
6,960.3
8,355.5
9,964.6
10,977.7
Ruchi Soya Industries Ltd.
127,423.2
143,926.3
182,311.8
302,464.4
Shree Renuka Sugars Ltd.*
28,159.9
77,002.5
86,623.0
88,876.0
Tata Coffee Ltd.
11,184.3
12,896.3
13,013.6
15,490.0
Food and Beverage – Monthly Update
\
United Spirits Ltd. Venky's (India) Ltd.
N.A.
N.A.
73,761.8
91,865.0
5,692.6
7,054.7
8,520.1
9,522.7
* Change in Financial Year Ending
Annual Financial Results – Income (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
Anik Industries Ltd.
‐171.0
‐70.2
‐89.8
N.A.
Asia Pacific Breweries Ltd.
556.1
‐473.1
‐119.9
296.3
Balrampur Chini Mills Ltd.*
‐45.0
64.6
252.4
N.A.
Bannari Amman Sugars Ltd.
‐279.679
‐141.028
‐118.468
‐16.381
‐357.2
55.1
11.1
92.0
Dabur India Ltd.
20,036.1
21,566.3
22,960.5
27,906.6
Dhampur Sugar Mills Ltd*
1,887.2
2,316.7
2,864.4
3,171.1
118.7
27.9
187.5
266.0
Hatsun Agro Products Ltd.
1,653.9
2,130.7
‐2,943.9
N.A.
Heritage Foods (India) Ltd.
‐260.0
‐17.8
‐410.7
N.A.
Hindustan Unilever Ltd.
3,905.0
5,010.8
5,685.7
6,448.9
169.9
280.0
259.2
365.2
33,245.9
41,681.8
50,179.3
62,581.4
Marico Ltd.
130.5
44.2
178.2
265.5
Radico Khaitan Ltd.
65.4
415.4
728.0
636.6
Britannia Industries Ltd.
Godrej Industries Ltd.
ITC Ltd. Kwality Dairy India Ltd.
Food and Beverage – Monthly Update
\
Ruchi Soya Industries Ltd.
1,514.8
1,031.8
1,343.5
1,995.5
Shree Renuka Sugars Ltd.*
129.3
289.2
399.3
408.9
Tata Coffee Ltd.
93.8
179.5
459.4
911.5
United Spirits Ltd.
250.8
‐90.6
‐131.6
‐336.4
Venky's (India) Ltd.
256.0
460.0
‐335.7
‐1.4
* Change in Financial Year Ending
Quarterly Financial Results – Revenue (INR mn) JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
N.A.
3472.852
6038.9
3174.9
Asia Pacific Breweries Ltd.
27625.89058
40736.81065
31316.57722
34,279.40
Balrampur Chini Mills Ltd.
N.A.
6,637.4
N.A.
N.A.
2,676.6
3,467.2
3,065.1
3,625.3
N.A.
12,491.0
N.A.
N.A.
Dabur India Ltd.
12,623.3
14,526.8
13,858.3
14,620.0
Dhampur Sugar Mills Ltd
4,001.6
4,578.3
4,387.8
3,496.8
Godrej Industries Ltd.
13,991.9
14,470.8
15,563.4
17,889.3
Hatsun Agro Products Ltd.
N.A.
N.A.
4,329.9
4,897.1
Heritage Foods (India) Ltd.
3,461.6
3,545.1
3,595.2
4,080.3
Hindustan Unilever Ltd.
56,104.8
N.A.
N.A.
N.A.
N.A.
62,478.4
N.A.
N.A.
Companies Anik Industries Ltd.
Bannari Amman Sugars Ltd. Britannia Industries Ltd.
ITC Ltd.
Food and Beverage – Monthly Update
\
Kwality Dairy India Ltd.
5131
6414.1
7797.1
8,152.1
Marico Ltd.
9,744.5
10,578.2
9,273.9
12,672.1
Radico Khaitan Ltd.
2,627.3
3,094.9
2,731.5
3,038.3
Ruchi Soya Industries Ltd.
N.A.
70,343.1
N.A.
N.A.
Shree Renuka Sugars Ltd.
23,349.0
20,458.0
16,610.0
N.A.
Tata Coffee Ltd.
4,102.8
4,128.3
3,943.5
4,077.4
United Spirits Ltd.
22,568.0
23,981.0
22,709.0
24,343.0
Venky's (India) Ltd.
2,414.0
2,502.8
2,674.9
3,147.8
Quarterly Financial Results – Income (INR mn) JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
N.A.
8.6
88
20.7
Asia Pacific Breweries Ltd.
2070.192613
6338.506078
2547.044848
3998.9
Balrampur Chini Mills Ltd.
N.A
‐640.1
N.A.
N.A.
141.3
201.6
643.0
282.0
N.A.
540.7
N.A.
N.A.
1,738.6
1,728.2
1,705.1
1,494.0
Dhampur Sugar Mills Ltd
40.1
22.5
223.2
64.1
Godrej Industries Ltd.
928.3
847.3
427.2
414.5
N.A.
N.A.
28.2
139.0
Companies Anik Industries Ltd.
Bannari Amman Sugars Ltd. Britannia Industries Ltd. Dabur India Ltd.
Hatsun Agro Products Ltd.
Food and Beverage – Monthly Update
\
Heritage Foods (India) Ltd.
25.5
42.4
29.4
84.5
6,889.2
N.A.
N.A.
N.A.
ITC Ltd.
N.A.
17,009.8
N.A.
N.A.
Kwality Dairy India Ltd.
162
223.2
387.9
290
Marico Ltd.
783.0
841.2
697.0
1,238.4
Radico Khaitan Ltd.
147.9
236.6
44.7
211.2
Ruchi Soya Industries Ltd.
N.A.
240.5
N.A.
N.A.
Shree Renuka Sugars Ltd.
‐6,158.0
3,439.0
‐719.0
N.A.
Tata Coffee Ltd.
175.9
215.1
288.3
281.8
United Spirits Ltd.
‐227.0
946.0
26.3
‐394.0
96.1
29.3
181.6
201.3
Hindustan Unilever Ltd.
Venky's (India) Ltd.
Events Calendar Fi India 2012 Date: 6th – 7th October 2012 Venue: Bombay Convention & Exhibition Centre, Western Express Highway, NSE Complex Goregaon (East), Mumbai 400 063 Organizers: UBM India, Tel : 022‐67692400/67692424 Drink Technology India 2012 Date: 6th – 8th November 2012 Venue: Bombay Convention & Exhibition Centre, Western Express Highway, NSE Complex Goregaon (East), Mumbai 400 063 Organizers: Messe Muenchen International, Tel: +91 22 4255 4710India (MMI India)
PackTech 2012 Date: 2nd – 8th November 2012 Venue: Bombay Convention & Exhibition Centre, Western Express Highway, NSE Complex Goregaon (East), Mumbai 400 063, India Organizers: Messe Munchen GmbH
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: https://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