market research report : ready to eat market in india 2014 - sample

Ready To Eat Market – India

April 2014

2READY TO EAT MARKET IN INDIA 2014.PPT

Executive Summary

Market

Indian ready to eat market was valued at INR x1 mn in 2013 and is estimated to reach INR y2 mn by 2018

With changing consumer behavior due to various factors such as increasing income levels and hectic lifestyle, these products are gaining popularity among them

Drivers & Challenges

Competition

Drivers—Growing Income and Consumption

—Rapid Urbanization

—Increasing Working Women Population

—Convenience Factor

—Growing Retail Market

—Marketing Campaigns

Challenges—Poor Supply Chain and

Distribution Facility

—Consumer Behavior and Perception

—Rise in Packaging Costs

—Health Concerns

Major Players

Company A Company B Company C

Trends

Exhibitions and Events

High Focus on Export

Adaptation of New Technologies

Innovative Promotional Techniques

Gaining Special Attention in Retail Format Stores

Retailers Going for Private Label RTE Meals

Launching Innovative and Region Specific Products

Frozen RTE Products Gaining Popularity

3

•Macro-Economic Indicators

•Introduction

•Market Overview

•Market Segmentation

•Consumer Insights

•Import & Export

•Drivers & Challenges

•Government Rules & Policies

•Government Participation

•Trends

•Competitive Landscape

•Strategic Recommendations

•Appendix

READY TO EAT MARKET IN INDIA 2014.PPT

4

Economic Indicators (1/3)

11

12

13

14

15

b2

a2

Q1

d1c1

b1

a1

Q4

c4

b4

a4

Q3

c3

b3

a3

Q2

d2c2

INR tn

2013-142012-132011-122010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Jul 2013 - Aug 2013

p

%

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

s

Sep 2013 - Oct 2013

r

Aug 2013 - Sep 2013


5

SAMPLE


Indian Market – Overview (1/3)

The Indian ready to eat market is at a nascent stage and is expected to witness remarkable growth…

• Ready to Eat (RTE) food was introduced in India originally in 1987, but the concept failed initially

• However, recently it started gaining popularity among the Indian consumers due to various factors such as

increasing income levels and hectic lifestyle among others

• In comparison to domestic market, demand for Indian RTE food products is more in the global market and

players earn a significant share of their revenue via exports

• During 2013, Indian ready to eat market was valued at around INR a1 mn

Market Size & Growth

r

q

p

0

s

t

u

v

2018e2017e

e1

2016e

d1

2015e

c1

2014e

b1

2013

a1

f1

X1%

6

SAMPLE


• In 2012, Frozen RTE food accounted for x1% of the global

market revenue

• In 2014, the global RTE market is expected to reach INR y2

bn and in terms of volume exceed z3 mn kg

• Expected CAGR for frozen RTE is a1% from 2013 to 2019e

• Major players in the global market are Player 1, Player 2

and Player 3

• Reasons for the demand for RTE food is higher globally

Cheaper than buying all the ingredients and preparing from

scratch

Lack of time

Migration is the driving force behind consumer commonalities which in turn is causing a global appeal and an evolution in the global retail food space

b1

a1

Segment 2

Segment 1

Global Market Share (2013)

The Global Ready to Eat Market is likely to experience sustained growth

Global Market – Overview

7

SAMPLE


Market Segmentation (1/4)

RTE products are broadly classified into two segments

RTE products are often termed as ‘Convenience Food’ since they are positioned as ‘value for money’ products that solve the issue of time-constraints faced by urban

consumers due to their hectic lifestyle

Classification of RTE Products

B3

B1

On the basis of Packaging On the basis of Availability

A1

A2

8

SAMPLE


Consumer Insights on RTE Products (1/6)

Sample Size 73

Sample SourcesSocial Media Websites and

Other Related Forums

Survey Duration & Period

3 Weeks – March 2014

Quantitative Representation Used

Percentage

59%

47%

12%

27%

• Survey on RTE products was conducted on social media sites and other related forums

• Overall survey has been kept close-ended to capture specific information according to

requirements

• The survey has been conducted among a group of general consumers heading from major

Indian cities including Mumbai, Delhi, Kolkata, Pune, Hyderabad, and Bangalore among others


Drivers & Challenges – Summary

Drivers

Growing Income and Consumption

Rapid Urbanization

Convenience Factor

Increasing Working Women Population

Growing Retail Market

Marketing Campaigns

Challenges

Poor Supply Chain and Distribution Facility

Deficit in Power Supply

Consumer Behavior and Perception

Rise in Packaging Costs

Health Concerns


`

Exhibitions and Events

High Focus on Export

Launching Innovative and Region Specific Products

Gaining Special Attention in Retail Format Stores

Trends – Summary

Key Trends

Retailers Going for Private Label RTE Meals

Adoption of New Technologies

Innovative Promotional Techniques

Frozen RTE Products Gaining Popularity

11

SAMPLE


Porter’s Five Forces Analysis

Competitive RivalryBargaining Power of SuppliersBargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impactx

Impactx

Impactx

Impactx

Impactx

*Note: BEP (Break-even point)

12

SAMPLE


Competitive Benchmarking (1/5)

Public Trading Comparables

Company A Company B Company C Company D Company E

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

13

SAMPLE


Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

10

20

30

40

%

Company C

b3a3

Company B

b2a2

Company A

b1

a1

Operating Margin Net Margin

• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3%

• Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies

14

SAMPLE


Public: Domestic Company – Company 1(1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Name Designation

Person 1 MD and Executive Director

Person 2VC and VC of Share Transfer Committee

Person 3 Director

Person 4 Director

Head OfficeMumbai

Category Products/Services

15

SAMPLE


Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012

• The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012

• The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012

• The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012

Key Financial Performance Indicators

Indicators Value (20/03/2014)

Particulars y-o-y change

(2013-12)2013 2012 2011 2010

Profitability RatiosOperating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity RatiosCurrent Ratio

Cash Ratio

Leverage RatiosDebt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency RatiosFixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline

Net Profit/LossTotal Income

e

d

c

b

a

s

r

q

p

2013

a4

z4

2012

a3

z3

2011

a2

z2

2010

a1

z1


16

SAMPLE


Public: Domestic Company – Company 1(3/5)Key Business Segments Key Geographic Segments

A%

B%

C%

2013

b4%

2012

b3%

2011

b2%

2010

b1%

a1% C%

B%

A%

2010

y1%

x1%

2013

x4%

2012

x3%

2011

x2%

Region 2Region 1

Business Highlights

Description News

Overview

•Company 1 started as a small retail store selling dry fruits and nuts and quickly diversified

into the food processing segment

•Now, it is engaged in the manufacturing, marketing and distribution of ethnic Indian food

products such as ready to eat items, Product A, Product B and Product C

• It offers its products under the brand names Brand A, Brand B and Brand D

• In addition to this, it also offers contract manufacturing services to leading multinational

companies and mainstream retailers globally

Segment 2Segment 1

17

SAMPLE


Description News

Global Presence

• Various brands of Company 1 enjoy huge popularity in the global markets as well such as

North America, the United Kingdom, Europe, South Africa, the Middle East, and the Asia

Pacific

• The company has its full time country managers based in their respective regions who

ensure proper supply of products to retailers, wholesalers, restaurants and food service

catering clients

Quality Assurance• The processing plants are HACCP (Hazard Analysis and Critical Control Point) and BRC

(British Retail Consortium) accredited

Expansion Plans

• In addition to its existing presence in Mumbai and Pune, it has expanded its distribution

in Gujarat and Madhya Pradesh as well

• It has also acquired a plot near its existing factory at Nadiad for setting up another

processing plant


Business Highlights

18

SAMPLE

TO

WS

Public: Domestic Company – Company 1 – SWOT Analysis (5/5)


19

SAMPLE


Private: Domestic Company – Company 2(1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Person 4 Director

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation Head Office

Category Products/Services

Ready Meals

Instant Mixes

Others

Mumbai

20

SAMPLE



Shareholders of the Company Ownership Structure

Name No. of Shares held

30%

40%

50%

60%

70%

80%

90%

100%

0%

10%

20%

2012

100

2011

100

2013

100

Segment

21

SAMPLE


Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12)2013 2012 2011 2010

Profitability RatiosOperating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity RatiosCurrent Ratio

Cash Ratio

Leverage RatiosDebt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency RatiosFixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover


Improved Decline

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2011, as

compared to net profit of INR x2 mn in FY 2010

• The company reported total income of INR x3 mn in FY 2011,

registering an increase of x4% over FY 2010

• The company earned an operating margin of x5% in FY 2011,

an increase of x6 percentage points over FY 2010

• The company reported debt to equity ratio of x7 in FY 2011, a

decrease of x8% over FY 2010

Net Profit/LossTotal Income

a

t

s

r

q

f

p

b

c

d

e

b4

a4

20112008

a1

b1

2010

a3

b3

2009

a2

b2

22

SAMPLE


Business Highlights


Description News

Overview

• Company 2 started its business in India as a small family enterprise manufacturing instant

soups and instant mixes

• Gradually, it diversified into other segments such as ready to eat foods, savory snacks and

dairy products

• The company has captured India's fast growing processed food market through its quality

products, well established distribution network and aggressive marketing strategies

Manufacturing Facility• Its manufacturing facility is located at Y region and it is well equipped with modern

machinery required for retort packaging

Quality Assurance• It has ABC certificate and HACCAP (Hazard Analysis and Critical Control Point)

certifications

Distribution Network

• Major states have their respective depots and C&F agents

500 distributors are located in all major urban centers

Retailer base for secondary sales covers nearly 1,50,000 outlets

Export• Its products are very popular in the global market and are exported to various

destinations such as USA, Canada, UK, Australia, Asia, the Middle East and Europe

23

SAMPLE

TO

WS

Private: Domestic Company – Company 2– SWOT Analysis (5/5)


24

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Ready to Eat Market in India 2014– India report is part of Netscribes’ Retail and Services Series.For any queries or customized research requirements, contact us at:

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market research report : ready to eat market in india 2014 - sample

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