market research report : baby food and child nutrition market in india 2012

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Baby Food & Child Nutrition Market – India

November 2012

2BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT

SAMPLE

Executive Summary

MarketGlobal baby food and child nutrition market has witnessed a turnover of INR x bn during 20__ and is growing rapidly especially in the developing nations Indian baby food and child nutrition market is also showing possitive growth and its market size was found to be INR y bn during 20__

Drivers & Challenges

Competition

Drivers—Increase in Number of New Born Babies—Increase in Disposable Income—Increasing Working Women Population—Increased Reach and Availability

Challenges—Regulatory Challenges—Rise in Ingredient Price—Cultural Aspect—High Pricing

Major Players

Company A Company B. Company C

Company D Company E Company F

The Infant Milk Substitutes (IMS), Feeding bottles and Infant foods Amended Act 20__Food Safety and Standards Authority of India (FSSAI)Modification in Packaged Commodities Rules 20__

Trends

Government

Innovation in product variants Inclination Towards Health and Wellness FoodsCollaborations and acquisitions Innovative brand building activities


SAMPLE

•Introduction

•Market Overview

•Import & Export

•Drivers & Challenges

•Government Regulations

•Government Initiatives

•Trends

•Competition

•Strategic Recommendations

•Appendix


SAMPLE

Introduction

Child nutrition or pediatric nutrition refers to the intake of a nutritionally adequate balanced diet, consisting of all the essential nutrients and sufficient calories required for a child’s proper growth within the age group of

0‐5 years in order to maintain the different physiological requirements at the various stages of the developmental process

Proper nutrition during the child’s growing phase reinforces the overall well‐being of the child for a healthy life in future

•During infancy calorie requirements is high and has to be provided mostly in the form of proteins, to support proper growth in height and weight

• The growth is irregular during toddlerhood, preschool and middle childhood years, which results in variation in desire to eat and calorie consumption

Age of the child Level of activity Environmental conditions

Factors determining the various levels of nutritional requirements

Breakdown of energy expenditure by a child in different activities

x4x3

x2x1 a

cbd


SAMPLE

•Generally, the food administered to babies of upto two years of age are termed as baby foods, which can be in solid, liquid or semi‐solid form

•But, as various socio‐economic, health‐related and geo‐societal conventions persist in the society, children more than two years old are also fed with these food products baby foods are also given to children older than two years depending on socio‐economic, health‐related and geo‐societal conventions

Classification of baby food and child nutrition products (1/3)

Baby Food and Child Nutrition – Classification

Cereal based

Cereal based with milk

Ready‐to‐feed liquids

Malt based beverages

Milk based Rusk and biscuits


SAMPLE

Global Market – Overview Market Size

Major player’s share (20__)*

• The global baby food and child nutrition market was estimated to be INR x1 bn in 20__

• It is expected to reach INR x2 bn in 20__, growing at a CAGR of z% between 20__‐20__

• It is growing rapidly, owing to the changing lifestyle and mindset of parents for acquiring healthy and hygienic growth of the child

• This growth is being witnessed more in developing nations in comparison to developed nations, especially in the Asian countries• Birth rates in the emerging markets, such as Asia and South America, exceed the U.S. by an average of a%

• Hence, the major players are targeting these emerging markets as U.S. and Europe have limited growth opportunity owing to lower birth rates and static market conditions

• Among the various baby foods and child nutrition products available globally, the infant formula market is dominated by five major players – A (a1%), B(a2%), C(a3%), D(a4%) and E(a5%)

The manufacturers of child nutrition products are targeting the developing nations to grab more market share

a6

a5

a4a3

a2

a1

F

E

D

C

B

A

0

1,000

2,000

3,000

INR bn

Z%

20__e

x8

20__e

x7

20__e

x6

20__e

x5

20__e

x4

20__e

x3

20__

x2

20__

x1

*Note: Figures are as of Jul 2011 and represents the infant formula market


SAMPLE

Increasing awareness among parents about proper child nutrition is driving the growth of this market

Indian Market – Overview (1/2) Market Size

Major player’s share (2011)

• Indian food supplement market consist of a varied portfolio of products targeting different age groups

• Child nutrition or pediatric nutrition market is one of those segments which focuses on nutritional requirements of a child

• The total market size of baby food and child nutrition market for 20__ is valued at INR y1 bn and is expected to reach INR y7 bn by 20__

• The major player in the Indian baby food market is A, holding a market share of a1%, next is B with a share of a2% and remaining share is occupied by other players such as c1,c2,c3

• Rising income levels and better product availability are some of the factors driving the child nutrition products industry in India

• However, the child nutrition product manufacturers witness various government regulations The players are now trying to convince government bodies to introduce their products in their different schemes to combat malnutrition among children

a3%a2%

a1%

C

B

A

0

10

20

30

40

50

20__

y2

20__

y1

INR bn

y3

Z%

20__e

y7

20__e

y6

20__e

y5

20__e

y4

20__e


SAMPLE

Food preparations for infants Major importing nations (20__)

Major importing nations (20__)Other foods prepared from cereals

Import of major child nutrition products (1/4)

0

20

40

60

80

100

0

100

200

300

400

‘000 KgINR mn

20__

y3

x3

20__

y2

x2

20__

y1

x1

ValueVolume

a2%a4%a3%

a1%

a5%

E

D

C

B

A

0

10

20

30

40

0

50

100

150

200

250

20__

y3

x3

20__

y2

x2

20__

y1

x1

‘000 KgINR mn

ValueVolume

b1%

b5%b6%

b4%

b3%

b2% K

J

I

H

G

F

*Note: Figures are value wise, HS Code 190110 (Food preparation for infant use put up for retail sale), HS Code 19049000 (Other prepared food obtained from roasted cereal flakes)


SAMPLE

Drivers & Challenges – Summary

Drivers

Increase in Number of New Born Babies

Increase in Disposable Income

Increasing Working Women Population

Increased Reach and Availability

Cultural Aspect

Challenges

Regulatory Challenges

Rise in Ingredient Price

High Pricing


SAMPLE

Trends – Summary

Innovation in product variants Inclination Towards Health and Wellness Foods

Innovative brand building activities Collaborations and acquisitions


SAMPLE

Public: Domestic Company – Company A (1/3)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate AddressCompany A, Street A

City B

State C

Tel No. 91 124 7239

Fax No. 91 124 4734111

Website www.company.co.in

Year of Incorporation 1767

Ticker Symbol 123456

Stock Exchange ABC

Category Products/Services

Malt based food Malt based food for different age group

Other nutritional products

Cereal based beverages, powdered milk, protein rich foods, nutritional food powders, ghee, biscuits, nutrition bar sweetmeat products and non carbonated water based beverages

Name Designation

Person A MD, CEO

Person B. Director

Person C Director

Person D Director

Head Office

City B


SAMPLE

Key Ratios

Financial Summary

• The company earned a net profit of INR x4 bn in FY 20__, as compared to net profit of INR x3 bn in FY 20__

• The company reported total income of INR y4 bn in FY 20__, registering an increase of z per cent over FY 20__

• The company earned an operating margin of a1 per cent in FY 20__, a decrease of z1 percentage points over FY 20__

• The company reported debt to equity ratio of a2 in FY 2011, a decrease of z2 per cent over FY 20__

Key Financial Performance Indicators

Net Profit / Loss

Total Income

INR bn

0

INR bn

40

0

20__

x4

y4

20__

x3

y3

20__

x2

y2

20__

x1

y1

200

300

10020

Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) u

Total Enterprise Value (INR mn) v

EPS (INR) w

PE Ratio (Absolute) x

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating MarginNet MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on AssetsReturn on Fixed Assets

Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity RatioDebt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset TurnoverWorking Capital TurnoverCapital Employed Turnover

Improved Decline

Financial Snapshot



SAMPLE

Key Business Segments Key Geographic Segments

Business Highlights


• It exports its products to countries such as Bangladesh, Sri Lanka, Nepal, Bhutan, the Middle East, Myanmar, Malaysia, Nigeria, and KenyaExport

Description News

Overview• The company primarily operates in the health food drinks industry in India The company is widespread in India, having regional offices at New Delhi, Kolkata, Mumbai, Chennai and depots at Bangalore, Cochin, Pondicherry, Madurai, Cuttack, Guwahati, Ranchi, Ahmendabad, Indore, Goa, Pune, Raipur, Dehradun, Jaipur and many other cities

Expansion Plans • The company has decided to invest INR x mn during 201__and INR y mn during 20__ for expanding the existing production capacities

0%

20%

40%

60%

80%

100%

20__

Z%

0%

20%

40%

60%

80%

100%

X%

20__

A

For the last four years, the company has been involved

solely in the nutrition business

B

India is the only geographic segment in which the

company has been operating for the last four years


Appendix

Ratio Calculations

Operating Margin (Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital (Net Income / Working Capital) *100

Return on Assets (Net Income / Total Assets)*100

Return on Fixed Assets (Net Income / Fixed Assets) *100

Operating Costs (% of Sales) (Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Ratio Calculations

Current RatioCurrent Assets / Current Liabilities

Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity Total Liabilities / Shareholders 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

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / Shareholders Equity


Sources of Information

Secondary Research

Print MediumLeading Newspapers

Journals / Magazines

Business Magazines

Electronic MediumCompany Websites

Government Websites / Resources

Online Magazines

Online Journals / Articles

Premium Databases

Social Networking Space

Primary Research

InterviewsLeading Industry Vendors

Industry Stakeholders

Industry Experts

Surveys Conducted in Social / Technology Focused Forums


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