Ready To Eat Market India

April 2014

Executive Summary
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

Market

Drivers Drivers & Challenges

Growing Income and Consumption Rapid Urbanization Increasing Working Women Population Convenience Factor Growing Retail Market Marketing Campaigns
Exhibitions and Events High Focus on Export Adaptation of New Technologies Innovative Promotional Techniques

Challenges
Poor Supply Chain and Distribution Facility Consumer Behavior and Perception Rise in Packaging Costs Health Concerns

Trends

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 Major Players

Competition

Company A

Company B

Company C

READY TO EAT MARKET IN INDIA 2014.PPT

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
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Economic Indicators (1/3)

GDP at Factor Cost: Quarterly
INR tn
15 14 13 12 11

d1 c1 b1 a1

d2 c2 b2 a2

c3 b3 a3

c4 b4 a4

Q1

Q2 2010-11

2011-12

2012-13

Q3 2013-14

Q4

Inflation Rate: Monthly

%
2 1 0 -1 -2

r q

t Jul 2013 - Aug 2013 Aug 2013 - Sep 2013 Sep 2013 - Oct 2013 Oct 2013 - Nov 2013 Nov 2013 - Dec 2013 4

READY TO EAT MARKET IN INDIA 2014.PPT

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

SAMPLE

Indian Market Overview (1/3)

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
f1 X1% d1 a1 b1 c1 e1

u t
s

r
q p 0

2013

2014e

2015e

2016e

2017e

2018e 5

READY TO EAT MARKET IN INDIA 2014.PPT

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

SAMPLE

Global Market Overview

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

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

Global Market Share (2013)

Segment 1 Segment 2 a1

b1

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RTE products are broadly classified into two segments

Market Segmentation (1/4)
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

SAMPLE
Classification of RTE Products

On the basis of Availability

On the basis of Packaging

A1 A2

B1 B3

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Consumer Insights on RTE Products (1/6)

SAMPLE
Survey Duration & Period Quantitative Representation Used 3 Weeks March 2014 Percentage

Sample Size

73

Sample Sources

Social Media Websites and Other Related Forums

59%

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 27% The survey has been conducted among a group of general consumers heading from major 47% Indian cities including Mumbai, Delhi, Kolkata, Pune, Hyderabad, and Bangalore among others
12%

READY TO EAT MARKET IN INDIA 2014.PPT

Drivers & Challenges Summary

Challenges Drivers
Growing Income and Consumption Rapid Urbanization Convenience Factor Increasing Working Women Population Growing Retail Market Marketing Campaigns Poor Supply Chain and Distribution Facility Deficit in Power Supply Consumer Behavior and Perception Rise in Packaging Costs Health Concerns

READY TO EAT MARKET IN INDIA 2014.PPT

Trends Summary
Exhibitions and Events High Focus on Export Adoption of New Technologies Innovative Promotional Techniques
Key Trends `

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
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Porters Five Forces Analysis

SAMPLE
Impact x Threat of New Entrants Impact x Impact x

Impact x

Bargaining Power of Suppliers

Competitive Rivalry

Bargaining Power of Buyers

Impact x

Threat of Substitutes

*Note: BEP (Break-even point) READY TO EAT MARKET IN INDIA 2014.PPT

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Competitive Benchmarking (1/5)

Public Trading Comparables
Company A

SAMPLE
Company B Company C Company D Company E

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

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Competitive Benchmarking (2/5)

SAMPLE
Operating Margin Net Margin a2 b2 Company B a3 Company C

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

%
40 30 20 10 0

a1 b1

b3

Company A

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

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Public: Domestic Company Company 1 (1/5)

Company Information
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange

SAMPLE
Offices and Centres India

Mumbai

Head Office

Products and Services

Category Products/Services

Key People
Name Person 1 Person 2 Person 3 Person 4 Designation MD and Executive Director VC and VC of Share Transfer Committee Director Director

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Public: Domestic Company Company 1 (2/5)

Financial Snapshot
Total Income e d c b a 2010 2011 2012 2013 z1 z2 a1 a2 a3 r z3 Net Profit/Loss

SAMPLE
Key Ratios
Particulars

y-o-y change (2013-12)

2013

2012

2011

2010

a4

Profitability Ratios
Operating 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

z4

q p

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

Cost Ratios
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios
Current Ratio Cash Ratio

Leverage Ratios
Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Key Financial Performance Indicators

Indicators Value (20/03/2014)

Efficiency Ratios
Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved Decline

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Public: Domestic Company Company 1 (3/5)

Key Business Segments
Segment 1 C% B% A% 2010 2011 2012 2013 a1% b1% b2% b3% b4% Segment 2 C% B% A% 2010 x1% y1%

SAMPLE
Key Geographic Segments
Region 1 Region 2 x2% x3% x4% 2011 2012 2013

Business Highlights
Description News

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

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Public: Domestic Company Company 1 (4/5)

Business Highlights
Description News

SAMPLE

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 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

Expansion Plans

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

SAMPLE
S O W T

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Private: Domestic Company Company 2 (1/5)

Company Information

SAMPLE
Offices and Centres India

Corporate Address

Tel No. Fax No. Website Year of Incorporation Mumbai Head Office

Products and Services

Category Products/Services

Key People
Ready Meals
Name Person 1 Instant Mixes Person 2 Others Person 3 Person 4 Director Director Director Designation Director

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Private: Domestic Company Company 2 (2/5)

Shareholders of the Company

SAMPLE
Ownership Structure
Segment 100% 90% 80% 100 100 100

Name

No. of Shares held

70%
60% 50% 40% 30% 20% 10% 0% 2011 2012 2013

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Private: Domestic Company Company 2 (3/5)

Financial Snapshot
Total Income t s r q p 2008 2009 2010 2011 b1 b2 b3 a1 b4 Net Profit/Loss a3 a4 f e d c b a

SAMPLE
Key Ratios
Particulars y-o-y change (2013-12) 2013 2012 2011 2010

Profitability Ratios
Operating 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

a2

Cost Ratios
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

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

Liquidity Ratios
Current Ratio Cash Ratio

Leverage Ratios
Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

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

Efficiency Ratios
Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved Decline

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Private: Domestic Company Company 2 (4/5)

Business Highlights
Description News

SAMPLE

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 Its manufacturing facility is located at Y region and it is well equipped with modern machinery required for retort packaging It has ABC certificate and HACCAP (Hazard Analysis and Critical Control Point) certifications Major states have their respective depots and C&F agents

Manufacturing Facility Quality Assurance

Distribution Network

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

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

SAMPLE
S O W T

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Thank you for the attention

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