P. 1
Market Research Report : Snacks Market in India 2013

Market Research Report : Snacks Market in India 2013

|Views: 102|Likes:
Published by Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
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.
The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.
The report provides a snapshot of the Indian snack industry which has witnessed several changes since 1995. In the initial years, the market was dominated by two players – traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players.
For the complete report, get in touch with us at : info@netscribes.com
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.
The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.
The report provides a snapshot of the Indian snack industry which has witnessed several changes since 1995. In the initial years, the market was dominated by two players – traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players.

More info:

Categories:Types, Business/Law
Published by: Netscribes, Inc. on May 08, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/16/2013

pdf

text

original

Snacks Market – India

May 2013

Executive Summary

SAMPLE 
Challenges
—Rise in Packaging Costs —Unorganized U i d S Sector t  and d Local L l  Players —Competitive Price Points —Health Concerns

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, lifestyle  these products are gaining popularity amongst them

Drivers
—Rapid Urbanization —Growing G i  I Income and d C Consumption ti —Increasing Working Women Population —Marketing Campaigns —Growing Retail Market —Convenience Factor  Exhibitions and Events   Product Innovation  Corporate Activities  Inclusion of Nuts as Snacking Option

Drivers &  Challenges

Trends

 Launch of Various Ethnic Snacks  Innovative Promotional Campaigns  Introduction of Healthy Snacks

Major Players

Competition

Company A

Company B.

Company C 

SNACKS MARKET IN INDIA 2013.PPT

2

•Macro‐Economic Indicators •Introduction •Market Overview •Market Segmentation •Consumer Insights g •Import & Export •Drivers & Challenges •Government Rules & Policies •Government Participation  •Trends •Competitive Landscape •Strategic g  Recommendations •Appendix
SNACKS MARKET IN INDIA 2013.PPT

SAMPLE 

3

Economic Indicators (1/3)
GDP at Factor Cost: Quarterly 
INR tn 15 14 13 12 11 10 Q1 Q2 2009‐10 a1 b1 c1 d1 a2 b2 c2 d2

SAMPLE 
a3 b3 c3 d3 b4 c4 d4 Q3 2010‐11 2011‐12 2012‐13 Q4

Inflation Rate: Monthly y
%
1.0 08 0.8 0.6 0.4 0.2 0.0

e2

e5

e1

e3

e4

Aug 2012 ‐ Sep 2012

Sep 2012 ‐ Oct 2012

Oct 2012 ‐ Nov 2012

Nov 2012 ‐ Dec 2012

Dec 2012 ‐ Jan 2013 4

SNACKS MARKET IN INDIA 2013.PPT

Food processing can be sub‐segmented into numerous categories  which include snacks as well

SAMPLE 
Market Segmentation
Food Processing Y Marine Products

Fruits & Vegetables

X

Z

U

A

Beverages

C

p

q

Baked Products

Snacks

r

Others

Focus of the report SNACKS MARKET IN INDIA 2013.PPT

5

The Indian snacks market is expected to witness remarkable  growth…

SAMPLE 

Indian Market – Overview (1/5)
• 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 sector • During 20__, Indian snack market was valued around INR X1 bn

Market Si Size e & Gro Growth th
INR bn
300 250 200 150 100 50 0

x6 y x4 x1 x2 x3 x5

20__

20__

20__

20__

20__

20__ 6

SNACKS MARKET IN INDIA 2013.PPT

…in the next few years with increased consumption amongst  consumers

SAMPLE 

Indian Market – Overview (2/5)
• Lots of varieties of snacking options are available in  the Indian market which is another factor behind  making it competitive • Players keep on innovating with flavors as  consumers want variety and taste • Snacks S k  i is an i impulse l  purchase h  product d t and d  consumers in general are not loyal to any particular  brand

Market Segmentation (20__)
Organized Sector Unorganized Sector

• Despite the presence of organized players such as  PepsiCo, ITC and Haldirams, unorganized sector  dominates the market a1 • 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  gradually shifted its focus towards  other lower tier markets
SNACKS MARKET IN INDIA 2013.PPT

a2

7

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 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

SAMPLE 

Change in Market Share of Major Players
Market Share (20 (20__) ) Market Share (20 (20__) )
B6 B7 A B C D A2 A1 E F Others B2 B3 B1 B4 B5

A4 A5 A3

A6

SNACKS MARKET IN INDIA 2013.PPT

8

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

SAMPLE 
Western

Traditional

Market Share of Various Snacks (20__)

Segmental Share (20__)

f e

g A a B C D E F Oh Others b1 a1 A B

d b

c

SNACKS MARKET IN INDIA 2013.PPT

9

Western snack segment is already very popular amongst  consumers…

SAMPLE 

Market Segmentation – Western Snacks (2/3)

Western Snacks 

• Western snacks include products such as chips, wafers, crisps  and extruded snacks
B  Potato chips account for the major share in Indian snacks market

• XX • XX
A A B

Organized O ga ed‐U Unorganized o ga ed Breakup ea up  (20__)

SNACKS MARKET IN INDIA 2013.PPT

10

Consumer Insights on Snacks (1/11)
Sample Size 80

SAMPLE 
Survey Duration &  Period Quantitative  Representation Used 3 Weeks – March 2013 Percentage Profile of Respondents – Age Wise (years)

Sample Sources

Social Media Websites and  Other Related Forums

• Survey on snacks was conducted on social  media sites and other related forums y has been kept p  close‐ended to  • Overall survey capture specific information according to  requirements • The survey has been conducted amongst a  group of general consumers heading from  major Indian cities including Mumbai, Delhi,  Kolkata, Pune, Hyderabad, Bangalore among  others

18‐24 25‐30

31‐35 36‐40 ED

41 & above

C

B

A

SNACKS MARKET IN INDIA 2013.PPT

11

Consumer Insights on Snacks (2/11)
Q: Do you consume snacks?

SAMPLE 
Options 1) Yes 2) No 

Q: If you don’t consume snacks at present, would you  like to try it in future

Options 1) Yes                                            2) No

Consumption Share of Snacks
B

Share of Potential Future Consumers

D

C A

Yes

No

Yes

No

SNACKS MARKET IN INDIA 2013.PPT

12

Consumer Insights on Snacks (4/11)
Q: What type of snacks do you prefer? Options 1) X                                       2) Y 3) Z

SAMPLE 
Options 1) A 2) B

Q: If you consume both, which one do you prefer  more?

Consumption Pattern
%
80 70 60 50 40 30 20 10 0

Preference‐wise Share of ‘Both’ Category
C A B Y

A B

X

X

Y

Both
SNACKS MARKET IN INDIA 2013.PPT

13

Import of Major Types of Snacks (1/2)
A Snacks
Volume INR mn 300 200 A 100 0 20__ 20__ 20__ P Q R D S 20__ C B Value ‘000 unit
2,000 1,500 1,000 500 0

SAMPLE 
f e d c b

Major Importing Nations – Value Wise (2011)
A B C a D E F

B Snacks & Mixtures
Volume INR mn 200 150 100 50 0 20__ __ G T F U 20__ __ V 20__ __ H W 20__ __ E Value ‘000 unit
8,000 6,000 4,000 2,000 0

Major Importing Nations – Value Wise (2011)
P Q u p R S T t s r U q

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) SNACKS MARKET IN INDIA 2013.PPT

14

Drivers & Challenges – Summary 

SAMPLE 
Challenges
Competitive Price Points Unorganized Sector and Local Players Rise in Packaging Costs Health Concerns

Drivers
Rapid Urbanization Growing Income and Consumption Marketing Campaigns Increasing i  Working ki  Women  Population Growing Retail Market Convenience Factor

SNACKS MARKET IN INDIA 2013.PPT

15

Trends – Summary 

SAMPLE 

Exhibition and X Product Y Corporate Activities i ii
` Key Trends

Inclusion of A as Snacking Option Launch of Various Q Snacks Innovative Promotional Campaigns Introduction d  of f P Snacks k
SNACKS MARKET IN INDIA 2013.PPT

16

Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2012) 

SAMPLE 
Company A Company B
xx xx xx xx

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

xx

xx

EV/Revenue /  (x)

xx

xx

PE Ratio

xx

xx

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 SNACKS MARKET IN INDIA 2013.PPT

17

Competitive Benchmarking (2/5)

Key Ratios of Top 3 Companies – Operational Basis (FY 2011) (1/3)
%
40 30 20 10 0 30.39 21.73 11.04 7.30

SAMPLE SAMPLE   S
Operating Margin Net Margin
2 49 2.49 1.41

Company A

Company B

CompanyC

• xx

SNACKS MARKET IN INDIA 2013.PPT

18

Public: Domestic Company – Player A (1/5)
Company Information
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange xx xx xx xx xx xx xx City A Head Office

SAMPLE 

Offices and Centres – India 

Products and Services
Category Products/Services

Key People
RTE Products xx N Name D i ti Designation

Other Food Products

xx

SNACKS MARKET IN INDIA 2013.PPT

19

Public: Domestic Company – Player A  (2/5)
Financial i i l S Snapshot h
Total Income INR mn
2000 1500 1000 500 0

SAMPLE 
K  Ratios Key i
Particulars  d INR mn
150 100

Net Profit/Loss c

y‐o‐y change  2012 (2012‐11)
‐3.31 ‐6.73 ‐5.22 ‐7.25 ‐2.22 ‐7.92 ‐1.89 ‐4.90 7.37% 4.02% 6.52% 5.51% 8.50% 20.82% 6.67% 26.02%

2011

2010

2009

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
10.69% 10.75% 11.74% 12.76% 10.73% 28.74% 8.56% 30.92% 11.63% 12.08% 15.66% 13.22% 12.11% 28.25% 10.77% 33.44% 14.80% 7.61% 11.00% 9.02% 16.70% 56.05% 14.08% 41.15%

a

b

A 2009

B 2010

C

D

50 0

2011

2012

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 • 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

Cost Ratios
Operating costs (% of Sales) Administration costs (% of  Sales) Interest costs (% of Sales)
3.47 5.78 ‐0.24 92.50% 33.11% 0.82% % 89.03% 27.33% 1.06% % 87.70% 22.91% 1.21% % 84.70% 25.64% 1.74% %

Liquidity Ratios
Current Ratio Cash Ratio
0.43% ‐14.77% 2.49 0.53 2.48 0.63 4.42 1.76 2.60 1.09

Leverage Ratios
Debt to Equity Ratio Debt b  to Capital i l Ratio i Interest Coverage Ratio
7.22% 5.46% ‐12.08% 0.32 0.24 9.10 0.30 0.23 10.35 0.01 0.01 10.14 0.02 0.02 8.78

Key Financial Performance Indicators
Indicators
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Abs)

Value (dd/mm/yyyy)
XX XX XX XX

Efficiency Ratios
Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
23.09% 14.00% 6.29% 5.98% 14.65% 3.47 0.89 1.66 2.78 1.02 2.82 0.78 1.56 2.62 0.89 2.72 0.88 1.78 2.30 1.02 2.69 0.92 2.26 3.66 1.13

Improved

Decline

SNACKS MARKET IN INDIA 2013.PPT

20

Public: Domestic Company – Player A (3/5)
Key Business Segments
Traded Goods
100% 50% 0%

SAMPLE 
100%

Key Geographic Segments
India Q P S R T U Exports

Processed and Preserved Foods C D E F

A B

50% 0%

2009

2010

2011

2012

2009

2010

2011

2012

Business Highlights
Description  News

Overview

• XX

SNACKS MARKET IN INDIA 2013.PPT

21

Public: Domestic Company – Player A (4/5)
Business Highlights
Description  News

SAMPLE 

Global Presence

• XX

Quality Q y Assurance

• XX

E Expansions i

• XX

SNACKS MARKET IN INDIA 2013.PPT

22

Public: Domestic Company – ITC Ltd. – SWOT Analysis (5/5)

SAMPLE 
• xx

• xx

S O
• xx

W T
• xx

SNACKS MARKET IN INDIA 2013.PPT

23

Strategic Recommendations (1/4)
Product

SAMPLE 
Price
• XX

• XX

Promotion

Place of Distribution

• XX

• XX

SNACKS MARKET IN INDIA 2013.PPT

24

Strategic Recommendations (3/4)
A

SAMPLE 
B
• XX

O T H E R S T R A T E G I E S

• XX

C

• XX

SNACKS MARKET IN INDIA 2013.PPT

25

Appendix
Ratio
Operating Margin Net Margin Profit Before Tax Margin Return on Equity (ROE)  Return on Capital (ROCE)  Return on Working Capital Return on Assets Return on Fixed Assets Operating Costs (% of Sales) Administration Costs (% of  Sales) Interest Costs (% of Sales)

Calculations
(Operating  Income/Revenues)*100 (Net Profit / Revenues) *100 (Income Before Tax / Revenues  *100  (Net Income (N I  / Shareholders Sh h ld   Equity)*100  EBIT / (Total Assets – Current  Liabilities)*100  (EBIT / Working Capital) *100

Ratio
Current Ratio

Calculations
Current Assets / Current  Liabilities  {(Cash & Bank Balance +  Marketable Securities) / Current  Liabilities)}  Total Liabilities / Shareholders  E it   Equity {Total Debt / (Shareholders  Equity + Total Debt)}  EBIT / Interest Expense Sales / Fixed Assets  Sales / Total Assets  Sales / Current Assets  Sales / Working Capital  Sales / (Shareholders Equity +  Total Debt)

Cash Ratio

q y  Debt to Equity Debt to Capital Ratio Interest Coverage Ratio Fixed Asset Turnover

(EBIT / Total Assets)*100  (EBIT / Fixed Assets) *100  (Operating Expenses / Sales)  *100  (Administrative Expenses / Sales)  *100  (Interest Expenses / Sales) *100  Asset Turnover Current Asset Turnover  Working Capital Turnover Capital Employed Turnover 

SNACKS MARKET IN INDIA 2013.PPT

26

Sources of Information
Secondary Research Print Medium
Leading Newspapers Journals / Magazines Business Magazines

Primary Research Interviews
Leading Industry Vendors Industry Stakeholders Industry Experts  Surveys Conducted in Social / Technology Focused  Forums

Electronic Medium
Company Websites Government Websites / Resources Online Magazines Online Journals / Articles Premium Databases Social Networking Space

SNACKS MARKET IN INDIA 2013.PPT

27

Thank you for the attention
Snacks Market – India report is part of Netscribes’ Food & Beverage Series.  For any queries or customized research requirements please contact:
Phone: E‐Mail: +91 91 33 4064 6214 sales@netscribes.com

Follow us on:

About Netscribes Netscribes is a knowledge g ‐consulting g and solutions firm f  with clientele across the globe. g  The company’s p y  expertise p  spans p  areas of f investment &  business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true  value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth  objectives. Disclaimer: This report is published for general information only only. Although high standards have been used in the preparation preparation, “Netscribes” Netscribes  is  not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior  permission is required for guidelines on reproduction.
SNACKS MARKET IN INDIA 2013.PPT

28

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->