Research on India_Food and Beverage Sector in India Monthly Update_October 2012

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Food and Beverage Sector in India Monthly Update October 2012


Top Story Subway to launch its fourth vegetarian outlet soon Subway, the well known global sandwich chain is planning to open up its fourth completely vegetarian restaurant in India by the end of 2012. Till now, the company has opened three vegetarian outlets, one at Lovely Professional University in Punjab, the second one at Amity College in Delhi and the third one at Gahtkopar. The fourth one will be opened at Fortis Hospital in Gurgaon by next month. Subway which has been operating in India since the last 10 years, at present has 293 outlets in the country catering to 300 mn middle class population, out of which around 80% people are Hindus who don’t consume beef. So, Subway has modified its menu according to the culture of this country. The ‘veg only’ menu includes items such as aloo patty, potato patties flavored with turmeric and other Indian spices and herbs, paneer tikka, corn and peas sandwich and veg shammi kababs, available as sandwiches or salads. In addition to this, the company has plans of opening up another 35 Subway outlets by the end of this year and to achieve a total of 530 outlets by the year 2015. India is a religious country wherein a large chunk of the population prefers vegetarian food and these quick service restaurants are trying to grab this opportunity. Recently, McDonald’s also announced about opening up vegetarian outlets in India. So, another vegetarian outlet launch by Subway will surely help the company to compete with other popular brands such as McDonald. News Update

General

Nestle to enter the ready­to­eat curry market Nestle, the well known global brand which has a wide range of different types of products under its portfolio is planning to foray into the Indian ready‐to‐eat curry market. The company will launch culinary pastes for catering different professionals associated with the food industry along with helping restaurants and hotel chains to standardize meal offerings. In addition to this, usage of these products will help to save time along with reducing manpower costs incurred in these sectors. As of now, the company is test‐marketing its products in northern India. The products have been divided into four categories depending on the base products ‐onion, tomato, cashew or coconut, which has been diluted according to the requirements for creating the end dish. Food and Beverage – Monthly Update


Czech­India discusses about partnership in the food processing sector Recently a discussion was held at the Indian Merchant Chambers (IMC), Mumbai between the representatives of Czech Republic and India regarding the possibilities of tie‐ups in the food processing sector between the two countries. The deputy minister of agriculture and forest management, Czech Republic, Radek Braum highlighted about the rapidly growing food processing industry of their nation and how both the countries were going to be benefitted from the tie‐up. Czech Republic is known for using high‐end technology in their production processes. In terms of global beer consumption, the country holds the first place. Moreover, the country is blessed with favourable climatic condiiton for growing malted barley. India also is known as largest producer of milk in the world and second largest in wheat, rice and other products. Moreover, 100% FDI is allowed in the food processing industry of India. So, both the nations are exploring the various opportunities lying in the two countries so as to take full advantage of the tie‐up. Cadbury strengthens its cold chain facilities Cadbury India is planning to invest more in its cold chain facilities in order to facilitate proper preservation and storage of its premium chocolate brands. Till now, cold chain facilities have been set up in their 78,000 stores. In general, chocolates are more prone to be effected by poor climatic conditions. Moreover, a few years back, the company has witnessed ‘worm scare’ in its chocolates. So, the company has become more careful in preserving their chocolate brands even at the points of sale. The company has invested both at the back‐end, in transportation infrastructure, storage infrastructure and in the front‐end stores by supplying massive visi‐coolers in heavy numbers.

News Update Regulatory

Agriculture Minister keen to apply Amul model in other Indian states Sharad Pawar, the Minister of Agriculture and Food Processing Industries has showed his interest on applying the Gujarat Milk Marketing Co‐operative Federation’s (GCMMF) ‘Amul model’ to other states of India. Recently, in an inauguration event of Dudhmotisagar Dairy at Dharuhera, Harayana, these views were expressed. The Dudhmotisagar dairy has a processing capacity of 3 mn litres per day and has been set up by Mehsana District Cooperative Milk Producers Union Ltd, which is a member union of GCMMF. An investment of around INR 45 mn has been made for this.

Food and Beverage – Monthly Update


In the event stress on improving the livestock breeds along with facilitating quality and quantity of fodder production was also given. Moreover, Amul was asked to step up milk procurement in States such as Haryana and Rajasthan.

News Update Expansion Plans

Leonidas enters India The well known Belgium chocolate brand Leonidas, has opened its first franchise outlet in India at Santacruz West. For this, a tie‐up has been formed between Premium Pralines Pvt. Ltd and Leonidas for importing and distribution of the chocolates throughout India. The premium chocolates of Leonidas are made from 100% cocoa butter, both the shell and the filling. As a part of initial promotional offers, the company is planning to lure the consumers with wide range of chocolate hampers, kids hampers and other activities. In addition to opening up stores in metro cities, the company has future plans of opening up outlets in tier‐I and tier‐II cities as well. The company will be using two different formats – kiosk and store for the two different places. Kiosk format which will require an investment of around INR 2–2.2 mn will be used in tier‐I and tier‐II cities, whereas store format which will involve an investment of around INR 5–5.5 mn will be applied in metro cities. First Starbucks store inaugurated in Mumbai Coffee giant Starbucks recently opened its first store in India. The store has been set up in the historic Elphinstone Building in the Horniman Circle which is in the neighborhood of south Mumbai. In India, Starbucks operates in association with the Tata Global Beverages. In addition to this store, the company has further plans of launching two more stores in Mumbai by next week in the Taj Mahal Palace hotel and in the Oberoi hotel. The Mumbai store has an accommodating capacity 120 people and boasts of features including hand‐carved wooden screens, thick tables of solid Indian teak, painted vintage trunks and old leather‐bound books. The store will remain open till 11 p.m. on weekdays and till 1 a.m. on weekends. The store will also offer Wi‐Fi connectivity to its customers. The big list of 42 menu items also include certain traditional items such as elaichi mawa croissants, made with cardamom and milk solids and tandoori paneer rolls. RN Group to sign up distribution deal with Monster Beverages The Mumbai‐based importer‐distributor Rahul Narang (RN) Group which is involved in importing and distributing some major global brands such as Evian water from Danone, Perrier from Nestle and Swiss chocolate Lindt, will soon be signing up a distribution deal

Food and Beverage – Monthly Update


with the US‐based Monster Beverages. The energy drink brand ‘Monster’ of the Monster Beverages is the fastest growing brand in the US market. Earlier, RN Group along with Danone was engaged in distribution of Red Bull. This JV was called Narang Danone Access in which the RN Group had a majority stake. But, recently, RN Group has parted its way with Red Bull. So, it is expected that this deal with Monster Beverages has been done in response to the split with Red Bull as Monster Beverages is the second‐largest energy drinks maker in the world after Red Bull. Industry Expert Speak Application of Amul Model in the dairy sector – R.S. Sodhi, MD, GCMMF “The farmer members of the milk co‐operative get as high as 85 per cent of the price paid by the consumer. The spread of Amul’s operations to Haryana will benefit farmers in the region" Leonidas outlet launched in India– Darshit Shah, MD, Leonidas Fresh Belgian Chocolates Premium Pralines Pvt. Ltd. “The chocolate industry in India is both organised as well as fragmented and is growing at the rate of approximately 12% to 14%. Being positioned as Belgium chocolates, Leonidas will facilitate the consumers in Santacruz with wide range of chocolate hampers, kids hampers and much more. All our chocolates are made from 100% cocoa butter, both the shell and the filling. The company believes in providing luxurious products of the best quality to the Indian consumer and plans to venture out into different luxury avenues for expansion"

Transactions (Aug­Oct 2012)

Date

Buyer

Target

Size (INR mn)

% stake

Deal Status

Type of Transaction

29th Oct 2012

Titbit.com

Foodkamood.com

N.A.

100%

Completed

M&A

22nd Oct 2012

Aditya Birla PE

538.8

N.A.

Completed

PE

8th Oct 2012

Standard Chartered PE

1650

N.A.

Completed

PE

20th Sep 2012

N.A.

1060

N.A.

Pending

PE

Olive Bar & Kitchen Pvt. Ltd. Varun Beverages (International) Ltd. Maiyas Beverages And Food ‐ Fund Raise

Food and Beverage – Monthly Update


Date

Buyer

Target

Size (INR mn)

% stake

Deal Status

Type of Transaction

20th Sep 2012

Future Ventures India Ltd.

Express Retail Services Pvt. Ltd.

613.5

100%

Completed

M&A

18th Sep 2012

IDFC

1,550.00

15‐20%

Pending

PE

22nd Aug 2012

Dalmia Bharat Sugar & Industries Ltd.

N.A.

N.A.

Pending

M&A

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.

Future Supply Chain Solutions Ltd. ‐ Fund Raise

1,000.00

N.A.

Pending

PE

Parag Milk Foods Pvt. Ltd. Kolhapur Sugar Manufacturing Plant

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

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.

28,122.40

33,958.00

41,045.10

53,054.20

Dhampur Sugar Mills Ltd*

9,473.60

15,015.27

17,794.52

15,375.20

Godrej Industries Ltd.

36,121.28

37,080.50

44,989.50

57,100.30

Hatsun Agro Products Ltd.

10,135.69

11,415.58

13,557.32

16,035.37

Heritage Foods (India) Ltd.

7,967.54

9,003.85

10,960.86

13,768.51

Food and Beverage – Monthly Update


Hindustan Unilever Ltd.

166,639.84

180,319.30

200,225.50

234,363.30

IFB Agro Industries Ltd.

2,831.48

2,906.74

4,499.83

5,846.29

165,561.40

191,358.70

225,747.00

265,517.90

Kwality Dairy India Ltd.

5,828.03

10,541.25

16,080.36

23,894.81

Marico Ltd.

23,884.20

26,607.60

31,349.90

40,082.80

Radico Khaitan Ltd.

6,960.29

8,355.51

9,964.58

10,977.69

Ruchi Soya Industries Ltd.

127,423.20

143,926.26

182,311.76

302,464.37

Shree Renuka Sugars Ltd.*

28,159.89

77,002.51

86,623.00

88,876.03

Tata Coffee Ltd.

11,184.31

12,896.27

13,013.61

15,489.97

N.A.

N.A.

73,761.83

91,865.00

5,692.64

7,054.71

8,520.08

9,522.70

ITC Ltd.

United Spirits Ltd. Venky's (India) Ltd.

* Change in Financial Year Ending

Annual Financial Results – Income (INR mn) Companies

FY ‘09

FY ‘10

FY ‘11

FY ‘12

Anik Industries Ltd.

‐171.00

‐70.20

‐89.80

N.A.

Balrampur Chini Mills Ltd.*

‐45.00

64.60

252.37

N.A.

Bannari Amman Sugars Ltd.

‐279.68

‐141.03

‐118.47

‐16.38

Britannia Industries Ltd.

‐357.20

55.14

11.05

92.00

Dabur India Ltd.

20,036.08

21,566.30

22,960.50

27,906.60

Dhampur Sugar Mills Ltd*

1,887.20

2,316.70

2,864.40

3,171.10

Food and Beverage – Monthly Update


Godrej Industries Ltd.

118.68

27.89

187.46

266.02

Hatsun Agro Products Ltd.

1,653.90

2,130.70

‐2,943.90

N.A.

Heritage Foods (India) Ltd.

‐260.00

‐17.80

‐410.70

N.A.

Hindustan Unilever Ltd.

3,905.00

5,010.80

5,685.70

6,448.90

IFB Agro Industries Ltd.

954.86

1,749.00

2,251.66

1,194.24

ITC Ltd.

169.87

280.02

259.25

365.17

33,245.90

41,681.80

50,179.30

62,581.40

Marico Ltd.

130.53

44.25

178.24

265.47

Radico Khaitan Ltd.

65.36

415.40

728.01

636.60

Ruchi Soya Industries Ltd.

1,514.85

1,031.80

1,343.50

1,995.50

Shree Renuka Sugars Ltd.*

129.31

289.19

399.32

408.92

Tata Coffee Ltd.

93.84

179.47

459.43

911.52

United Spirits Ltd.

250.77

‐90.60

‐131.60

‐336.40

Venky's (India) Ltd.

256.01

459.98

‐335.70

‐1.40

Kwality Dairy India Ltd.

* Change in Financial Year Ending

Quarterly Financial Results – Revenue (INR mn) Jul­Sep 2011

Oct­Dec 2011

Jan­Mar 2012

Apr­Jun 2012

Anik Industries Ltd.

N.A.

3472.852

6038.9

3174.9

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

Companies

Bannari Amman Sugars Ltd.

Food and Beverage – Monthly Update


Britannia Industries Ltd.

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.

IFB Agro Industries Ltd.

1772.69

1209.68

1503.22

1262.8

ITC Ltd.

N.A.

62,478.4

N.A.

N.A.

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

Food and Beverage – Monthly Update


Quarterly Financial Results – Income (INR mn) Jul­Sep 2011

Oct­Dec 2011

Jan­Mar 2012

Apr­Jun 2012

Anik Industries Ltd.

N.A.

8.6

88

20.7

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

Hatsun Agro Products Ltd.

N.A.

N.A.

28.2

139.0

Heritage Foods (India) Ltd.

25.5

42.4

29.4

84.5

Hindustan Unilever Ltd.

6,889.2

N.A.

N.A.

N.A.

IFB Agro Industries Ltd.

89.89

82.35

2.71

54.4

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

Companies

Bannari Amman Sugars Ltd. Britannia Industries Ltd. Dabur India Ltd.

Food and Beverage – Monthly Update


Venky's (India) Ltd.

96.1

29.3

181.6

201.3

Events Calendar PackTech 2012 Date: 2nd – 8th Nov 2012 Venue: Bombay Convention & Exhibition Centre, Western Express Highway, NSE Complex Goregaon (East), Mumbai 400 063, India Organizers: Messe Munchen GmbH

Drink Technology India 2012 Date: 6th – 8th Nov 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)

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Food and Beverage – Monthly Update


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