market research report : snacks market in india 2013
DESCRIPTION
For the complete report, get in touch with us at : [email protected] The new report, ‘Snacks Market in India’, states that the Indian snacks market is experiencing rising demand due to various driving factors which in turn is providing immense opportunities to manufacturers to grow and operate in the market lucratively.TRANSCRIPT
Snacks Market IndiaSnacks Market – India
May 2013
SAMPLE Executive Summary
Market
Indian snacks market was valued at INR XX bn in 20__and is estimated to reach INR YY bn by 2017__With changing consumer behavior due to various factors such as increasing income levels and busy urban lifestyle these products are gaining popularity amongst thembusy urban lifestyle, these products are gaining popularity amongst them
Drivers—Rapid UrbanizationG i I d C ti
Challenges—Rise in Packaging CostsU i d S t d L l
Drivers & Challenges
—Growing Income and Consumption—Increasing Working Women Population—Marketing Campaigns—Growing Retail Market—Convenience Factor
—Unorganized Sector and Local Players
—Competitive Price Points—Health Concerns
—Convenience Factor
Exhibitions and Events Product InnovationCorporate Activities
Trends
Launch of Various Ethnic Snacks Innovative Promotional Campaigns Introduction of Healthy Snacks
CompetitionMajor Players
Corporate Activities Inclusion of Nuts as Snacking Option
Introduction of Healthy Snacks
2SNACKS MARKET IN INDIA 2013.PPT
CompetitionCompany A Company B. Company C
SAMPLE •Macro‐Economic Indicators
•Introduction
•Market Overview•Market Overview
•Market Segmentation
•Consumer Insightsg
•Import & Export
•Drivers & Challenges
•Government Rules & Policies
•Government Participation
•Trends•Trends
•Competitive Landscape
•Strategic Recommendations
3SNACKS MARKET IN INDIA 2013.PPT
g
•Appendix
SAMPLE Economic Indicators (1/3)
INR tn
15 b4a3
GDP at Factor Cost: Quarterly
14
13
12
11
c4
d4
b3c3
d3
a2b2c2d2
a1b1
c1
d1
10Q4Q3Q2Q1
2012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0 8
1.0 e5
%
e2
0.2
0.4
0.6
0.8
e4e3e1
4SNACKS MARKET IN INDIA 2013.PPT
0.0Dec 2012 ‐ Jan 2013Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012Sep 2012 ‐ Oct 2012Aug 2012 ‐ Sep 2012
SAMPLE Food processing can be sub‐segmented into numerous categories which include snacks as well
Market Segmentation
Food Processing
Fruits &X Y
MarineZ U
VegetablesX Y
ProductsZ U
A Beverages C
q Baked Products Snacks rp Others
5SNACKS MARKET IN INDIA 2013.PPT
Focus of the report
SAMPLE The Indian snacks market is expected to witness remarkable growth…
Indian Market – Overview (1/5)
• Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily• Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily
• It has gained popularity amongst consumers due to various factors such as increasing income levels, hectic lifestyle and convenience associated with its consumption
• Indian snack market is quite competitive in nature due to presence of MNCs, regional and local players as well as the unorganized sectorwell as the unorganized sector
•During 20__, Indian snack market was valued around INR X1 bn
Market Si e & Gro thMarket Size & Growth
250
300
INR bn
y
x6
x5
50
100
150
200 x4x3
x2x1
6SNACKS MARKET IN INDIA 2013.PPT
0
50
20__20__20__20__20__20__
SAMPLE …in the next few years with increased consumption amongst consumers
Indian Market – Overview (2/5)
• Lots of varieties of snacking options are available in
Market Segmentation (20__)
Organized Sector
the Indian market which is another factor behind making it competitive
• Players keep on innovating with flavors as consumers want variety and tasteS k i i l h d t d Unorganized Sector• Snacks is an impulse purchase product and consumers in general are not loyal to any particular brand
a1a2
• Despite the presence of organized players such as PepsiCo, ITC and Haldirams, unorganized sector dominates the market
• Local and regional players raised market share• Local and regional players raised market share by invading those markets where there was absence of bigger brands
• Bigger players initially focused on urban markets and upon its saturation
7SNACKS MARKET IN INDIA 2013.PPT
markets and upon its saturation gradually shifted its focus towards other lower tier markets
SAMPLE Lots of varieties of snacks are available in the market and…
Indian Market – Overview (4/5)
• Snacks market is very dynamic as events such as entry of new players and launch of wide range of products by existing players keep on happeninglaunch of wide range of products by existing players keep on happening Whenever new products enter any category, market shares of major players get affected Though major players have maintained their top positions, but, their market shares got reduced in the past few years
Change in Market Share of Major Players
Market Share (20 ) Market Share (20 )Market Share (20__) Market Share (20__)
A6A5A4
A3
B7B6B5
B4B
A
A3
A2A1
B4
B3
B2
B1
F
E
D
C
8SNACKS MARKET IN INDIA 2013.PPT
B2Others
SAMPLE Snacks are broadly classified into two segments
Market Segmentation (1/3)
Snacks ‐ Classification
Indian market is filled with wide varieties of snacks, but, all of them are classified under two broad categories
Western Traditional
Segmental Share (20__)Market Share of Various Snacks (20__)
A
gf
ea
O h
F
E
C
B
A
b1a1
B
A
d
Others
D
C
9SNACKS MARKET IN INDIA 2013.PPT
cb
SAMPLE Western snack segment is already very popular amongst consumers…
Market Segmentation – Western Snacks (2/3)
Western Snacks
•Western snacks include products such as chips, wafers, crisps and extruded snacks Potato chips account for the major share in Indian snacks marketB Potato chips account for the major share in Indian snacks market
• XX
• XX
B
A
B
A
Organized‐Unorganized Breakup
10SNACKS MARKET IN INDIA 2013.PPT
O ga ed U o ga ed ea up(20__)
SAMPLE Consumer Insights on Snacks (1/11)
Sample Size 80Survey Duration &
Period3 Weeks – March 2013
Sample SourcesSocial Media Websites and
Other Related ForumsQuantitative
Representation UsedPercentage
• Survey on snacks was conducted on social media sites and other related forums
•Overall survey has been kept close‐ended to
Profile of Respondents – Age Wise (years)
41 & above
36‐40
31‐35
25‐30
18‐24y p
capture specific information according to requirements
• The survey has been conducted amongst a group of general consumers heading from
DEC
B
36 4025 30
major Indian cities including Mumbai, Delhi, Kolkata, Pune, Hyderabad, Bangalore among others
11SNACKS MARKET IN INDIA 2013.PPT
A
SAMPLE Consumer Insights on Snacks (2/11)
Options
Q: Do you consume snacks?
Options
Q: If you don’t consume snacks at present, would you like to try it in future
Options1) Yes 2) No
Options1) Yes2) No
Consumption Share of Snacks
B
Share of Potential Future Consumers
DD
A
C
12SNACKS MARKET IN INDIA 2013.PPT
NoYesNoYes
SAMPLE Consumer Insights on Snacks (4/11)
Options
Q: What type of snacks do you prefer?
Options
Q: If you consume both, which one do you prefer more?
1) X 2) Y3) Z
Options1) A2) B
Consumption Pattern Preference‐wise Share of ‘Both’ Category
A70
80
%
C
Y
B
40
50
60
70
X10
20
30
BA
13SNACKS MARKET IN INDIA 2013.PPT
0BothYX
SAMPLE Import of Major Types of Snacks (1/2)
A Snacks
2,000
‘000 unitINR mn
300 C
ValueVolume
fe F
E
D
C
B
A
Major Importing Nations – Value Wise (2011)
500
1,000
1,500
2,000300
200
100
S
DRQ
B
P
A
ed
c
b
a
FC
B Snacks & Mixtures
0020__20__20__20__
Major Importing Nations – Value Wise (2011)
u p
T
S
R
Q
P
6,000
8,000
‘000 unitINR mn
200
150
E
ValueVolume
ts
rq
U
T
0
2,000
4,000100
50
020__
W
H
20__
V
G
20__
U
F
20__
T
14SNACKS MARKET IN INDIA 2013.PPT
Note: HS Code 190190 (Food preparations based on malt extract – Salted Snacks ), HS Code 190410 (Prepared foods obtained by swelling or roasting of cereals –Packaged Snacks & Mixtures)
________
SAMPLE Drivers & Challenges – Summary
Drivers
Rapid Urbanization
Challenges
Competitive Price Points
Growing Income and Consumption
Marketing Campaigns
i ki
Unorganized Sector and Local Players
Rise in Packaging Costs
Increasing Working Women Population
Growing Retail Market
Health Concerns
Convenience Factor
15SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Trends – Summary
Exhibition and X
Product Y
i i i
`Key Trends
Corporate Activities
Inclusion of A as Snacking Option
Launch of Various Q Snacks
d f k
Innovative Promotional Campaigns
16SNACKS MARKET IN INDIA 2013.PPT
Introduction of P Snacks
SAMPLE Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2012)
Company A Company B
Market Capitalization (INR mn) xx xx
Share Price (INR) xx xx
EV/EBITDA (x) xx xx
/EV/Revenue (x) xx xx
PE Ratio xx xx
17SNACKS MARKET IN INDIA 2013.PPT
Note: Top 2 Public companies based on the Market Capitalization; Market Capitalization, Share Price is as on 5/04/2013 and PE ratio is as of 9/04/2013
SAMPLE SAMPLE Competitive Benchmarking (2/5)SKey Ratios of Top 3 Companies – Operational Basis (FY 2011) (1/3)
40
% Net MarginOperating Margin
2 49
11.04
30.39
7.30
21.73
10
20
30
40
2.49 1.410
CompanyCCompany BCompany A
• xx
18SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A (1/5)
Company Information Offices and Centres – India
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Products and Services
Ticker Symbol xx
Stock Exchange xxHead OfficeCity A
Key People
Products and Services
N D i ti
Category Products/Services
RTE Products xx Name DesignationRTE Products xx
Other Food Products xx
19SNACKS MARKET IN INDIA 2013.PPT
SAMPLE i i l S h K i
Public: Domestic Company – Player A (2/5)
Financial Snapshot Key Ratios
Particulars y‐o‐y change (2012‐11)
2012 2011 2010 2009
Profitability RatiosOperating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%
Net Profit/LossTotal Income
1500
2000 150INR mn INR mn
dc
ba
Net Margin ‐6.73 4.02% 10.75% 12.08% 7.61%
Profit Before Tax Margin ‐5.22 6.52% 11.74% 15.66% 11.00%
Return on Equity ‐7.25 5.51% 12.76% 13.22% 9.02%
Return on Capital Employed ‐2.22 8.50% 10.73% 12.11% 16.70%
Return on Working Capital ‐7.92 20.82% 28.74% 28.25% 56.05%
Return on Assets ‐1.89 6.67% 8.56% 10.77% 14.08%
0
500
1000
1500
0
50
100
2012
D
2011
C
2010
B
2009
a
A
Financial Summary • The company incurred a net profit of INR 63.7 mn in FY 2012, as compared to net profit of INR 142.4 mn in FY 2011
• The company reported total income of INR 1585.4 mn in FY 2012, registering an increase of 19.7% over FY 2011
Return on Fixed Assets ‐4.90 26.02% 30.92% 33.44% 41.15%
Cost RatiosOperating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70%
Administration costs (% of Sales)
5.78 33.11% 27.33% 22.91% 25.64%
Interest costs (% of Sales) ‐0.24 0.82% 1.06% 1.21% 1.74%registering an increase of 19.7% over FY 2011
• The company earned an operating margin of 7.37% in FY 2012, a decrease of 3.31 percentage points over FY 2011
• The company reported debt to equity ratio of 0.32 in FY 2012, a decrease of 7.22% over FY 2011
Interest costs (% of Sales) % % % %
Liquidity RatiosCurrent Ratio 0.43% 2.49 2.48 4.42 2.60
Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09
Leverage RatiosDebt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02
b i l iKey Financial Performance Indicators
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) XXTotal Enterprise Value (INR mn) XXEPS (INR)
Debt to Capital Ratio 5.46% 0.24 0.23 0.01 0.02
Interest Coverage Ratio ‐12.08% 9.10 10.35 10.14 8.78
Efficiency RatiosFixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69
Asset Turnover 14.00% 0.89 0.78 0.88 0.92
Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26
20
EPS (INR) XXPE Ratio (Abs) XX
Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66
Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13
Improved Decline
SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A (3/5)
Key Business Segments Key Geographic Segments
ExportsIndiaProcessed and Preserved FoodsTraded Goods
0%
50%
100%
FED
C
B
A
0%
50%
100%
TR
S
P
Q
U
0%2012201120102009
0%201120102009 2012
Business Highlights
Description News
Overview •XX
21SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – Player A (4/5)
Description News
Business Highlights
Global Presence • XX
Quality Assurance • XXQ y XX
E i XXExpansions • XX
22SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Public: Domestic Company – ITC Ltd. – SWOT Analysis(5/5)
• xx • xx
WS
TO
• xx• xx
23SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Strategic Recommendations (1/4)
Product Price
• XX • XX
Promotion Place of DistributionPromotion Place of Distribution
• XX • XX
24SNACKS MARKET IN INDIA 2013.PPT
SAMPLE Strategic Recommendations (3/4)
A B
• XX • XX
OTHERR
STR
CATEGI
• XX
IES
25SNACKS MARKET IN INDIA 2013.PPT
Appendix
Ratio Calculations
Operating Margin (Operating Income/Revenues)*100
Ratio Calculations
Current RatioCurrent Assets / Current Liabilities
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin (Income Before Tax / Revenues *100
(N I / Sh h ld
Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity Total Liabilities / Shareholders E it
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
q yEquity
Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Return on Working Capital (EBIT / Working Capital) *100
Return on Assets (EBIT / Total Assets)*100
Return on Fixed Assets (EBIT / Fixed Assets) *100
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Operating Costs (% of Sales) (Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Sales / (Shareholders Equity +
26SNACKS MARKET IN INDIA 2013.PPT
Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover Sales / (Shareholders Equity + Total Debt)
Sources of Information
Secondary Research
Print MediumLeading Newspapers
Primary Research
InterviewsLeading Industry VendorsLeading Newspapers
Journals / Magazines
Business Magazines
Electronic Medium
Leading Industry Vendors
Industry Stakeholders
Industry Experts
Surveys Conducted in Social / Technology Focused Forums
Company Websites
Government Websites / Resources
Online Magazines
Online Journals / Articles
Forums
/
Premium Databases
Social Networking Space
27SNACKS MARKET IN INDIA 2013.PPT
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28SNACKS MARKET IN INDIA 2013.PPT
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