REPORT ON

INDIAN PACKAGED FOOD INDUSTRY

BIG STRATEGIC MANAGEMENT CONSULTANTS

3, Hindustan Kohinoor Complex, L B S Marg, Vikhroli (W), Mumbai, India
Tel: 022 67427821-29 Fax 022 67427826
P.O. Box 29815, India, United Arab Emirates
Tel 00971-4-431 5672 Fax 00971-4-431 5673
Mazustegui 21- 2a Entreplanta Izquierda, 47806, Bilbao Vizcaya, Spain
URL: www.big-consultants.com
CONTENTS

1. Indian Economic Overview

2. Packaged Food Industry Overview

3. Understanding Packaged Food

4. Major Players in Packaged Food Industry

5. About BIG Strategic Management Consultants

BIG Strategic Management Consultants 2

India is among the top 15 countries in the global economy in terms of GDP at current prices.

INDIAN ECONOMIC SCENARIO

 After several consecutive
GDP SCENARIO years of strong growth, the
10% world economy entered into
the worst recession which
8%
% Change Over Previous Year

started in third quarter of 2008.

6%  All the advanced
economies faced deep
4%
economic crisis , as the world

2% GDP dropped by 1.3% in

2009.
0%  The signs of recovery shall
be visible from fourth quarter
-2%
of 2010.

-4%  The Indian economy which

2008 2009 2010 2011 2012 has also been impacted by the
Year global turmoil, posted a
World Baseline World Downside scenario Indian Scenario growth of 5.4% in FY 2009.

Source: International Monetary Fund (IMF)

BIG Strategic Management Consultants 3

CONTENTS

1. Indian Economic Overview

2. Packaged Food Industry Overview

3. Understanding Packaged Food

4. Major Players in Packaged Food Industry

5. About BIG Strategic Management Consultants

BIG Strategic Management Consultants 4

The United States, not surprisingly, leads the world in eating food from boxes and bags.

GLOBAL PACKAGED FOOD MARKET (2009)

4% 3% 3% 3% 2% 3% 4%
100% 6% 5% 5%
15% 2% 14%
18% 1% 15%
23% 29% 5%2% 25%
80% 9% 10% 42% 5% The World
1% 4%
8% 3% 2% 4%
2% 3% 8% Bank puts the
20% 62%
60% 23% 32% 39%
14% 3% 21% 11%
5% food and
9%
40%
41%
27% agriculture
39% 36% 25% 28% 30%
29%
20% 21% sector at 15%
21%
8% 10% 7% 13% 11% 13% 8% of global gross
6%
0%
USA Spain France Mexico Japan Russia Brazil South China domestic
Africa
product,
Sauces, Dressings and Condiments Dairy Products
Bakery Goods Pasta
Soup and Canned food Processed/Ready-to-Eat Meals

Source: New York Times Database

 The size of the global processed-food market is estimated at USD 3.2 Trillion and nearly 80 per cent of Agricultural
products in the developed countries get processed and packaged.
 As nations such as China, India, Brazil and Russia become wealthier, they are changing their eating habits. In
particular, they are buying more packaged foods.

BIG Strategic Management Consultants 5

The retail food sector in India was valued at US$ 70 billion in 2008.

INDIAN PACKAGED FOOD MARKET (2009)

Consumption Percentage
1% Sauces, Dressings and
1% 3% 10% 12%
Condiments
Dairy Products The current

18% size of the

Bakery Goods
Indian dairy
Pasta
sector is US$
55%
Soup and Canned food 62.67 billion

Processed/Ready-to-Eat Meals

Snacks and Candy

Source: New York Times Database, 2010

 The Indian packaged processed foods industry is estimated at US$ 10.87 billion – US$ 13.05 billion, including biscuits,
chocolates, ice-cream, confectionery, snacks, cheese and butter.
 The industry is growing at a healthy 14-15 per cent over the past two-three years.
 The industry received foreign direct investments (FDI) totalling US$ 143.80 million in 2008-09 against US$ 5.70 million
in 2006-07.

BIG Strategic Management Consultants 6

Excise duty on ready to eat packaged foods and instant food mixes has been brought down to 8 per cent from 16 per cent.

GROWTH DRIVERS FOR PACKAGED FOOD IN INDIA

The major factor among others is Convenience without compromising on taste as packaged food works well for
a busy person who wants to eat a balanced meal or for a person who doesn't like to cook because there's
virtually no cooking involved.

Rising disposable incomes and the on-going urbanisation of India's population are set to drive the packaged
food market in India

The government plans to open 30 mega Food Parks and many Cold Storage by the end of the 11th five year
plan (2007-2012).

The calories, carbs and protein are predetermined, making it perfect for health conscious people.

The arrival of food multinationals, rising popularity of quick-service restaurants, modern retail trade and
technological advancements

BIG Strategic Management Consultants 7

CONTENTS

1. Indian Economic Overview

2. Packaged Food Industry Overview

3. Understanding Packaged Food

4. Major Players in Packaged Food Industry

5. About BIG Strategic Management Consultants

BIG Strategic Management Consultants 8

The dairy exports in 2007–08 rose to US$ 210.5 million against US$ 113.57 last fiscal.

UNDERSTANDING PACKAGED FOOD

PRODUCT DESCRIPTION
I. Sauces, Ketchups, Pickles, Mayonnaise, Spreads, Salad Dressings, Jams, Syrups
Dressings and and Cordials.
Condiment

II. Dairy Products Yogurt, Plain and Flavored Milk, Butter, Cheese, Ice Cream, Buttermilk,
Pudding.

III. Bakery Goods Breads, Cakes, Croissants, Cookies, Bakery Snacks, Sandwiches

IV. Soup and Soups, Baked Beans, Fruits and Vegetables, Sweets, Canned Meat, Pulps
canned food

V. Snacks and Wafers, Chocolates and Confectionaries, Namkeens

Candy

VI. Processed and Vegetable and Curry Meals, Rice, Cup Noodles, Cooked Noodles and Pastas
Ready to eat
Meals

BIG Strategic Management Consultants 9

CONTENTS

1. Indian Economic Overview

2. Packaged Food Industry Overview

3. Understanding Packaged Food

4. Major Players in Packaged Food Industry

5. About BIG Strategic Management Consultants

BIG Strategic Management Consultants 10

Recognising the growth potential of the branded health food sector in India, fast moving consumer goods (FMCG) majors
are foraying into this sector in a big way.

COMPETITION ANALYSIS

The industry is mainly unorganized with 75% of the processing units belonging to the unorganised category, the organised
category though small, is growing fast.

Sales Turnover 2008-09

Sr. No Name (Rs. crore)
1 Britannia 3,143
2 PepsiCo 2,000
3 Nestle 5,232
4 Amul 6,705
5 ITC 3,833
6 Kellogg’s NA
7 GlaxoSmithKline 2,500
8 Wrigley 500
9 Hindustan Unilever 791
10 Haldirams NA
11 Parle Agro 850

BIG Strategic Management Consultants 11

CONTENTS

1. Indian Economic Overview

2. Packaged Food Industry Overview

3. Understanding Packaged Food

4. Major Players in Packaged Food Industry

5. About BIG Strategic Management Consultants

BIG Strategic Management Consultants 12

ABOUT US

Foundation
 BIG Strategic Management Consultants, established in 2008, is a fusion of the vast experience of industry
veterans and its synergy with the young blood, which blends to give superior consulting services to both domestic
and international clients in fields as diverse as strategic consulting, technology consulting, financial consulting,
market research and analysis, feasibility studies and manpower planning.

Our Goal
 To exceed the expectations of every client by providing outstanding services which are timely, accurate and
innovative.

Our Associates
 Are distinguished by their functional and technical expertise along with their hands-on experience, thereby
rendering the most effective and professional service.

Our Services help clients

 Define new areas of businesses.
 Give a competitive edge to current and new businesses.
 Service with inventive business solutions which are realistic and achievable.

BIG Strategic Management Consultants 13

OUR SERVICES

 The regional exposure has a reach in Asia-Pacific, Middle East and Europe.
The various industries covered by the panel are divided into 3 different sectors covering the various industries as
mentioned below.

A - Government Departments and Organizations

(Policy Formulations, Organization Redesign, Impact Assessment Studies)

B – Manufacturing Industry
(Automotive,Chemicals,Consumer Goods, Food & Beverage, Pharmaceuticals, Textiles, Cement,Building
Materials)

C - Service Industry
(Advertising, Financial Services, Banking & Insurance, Media and Telecom, Healthcare, Hospitality, Transportation
& Logistics, Travel & Tourism, Aviation, Shipping)

D – Miscellaneous Industry
(Agriculture, Construction and Real Estate, Power and Water, Oil and Gas, Infrastructure)

BIG Strategic Management Consultants 14

HOW CAN HELP?

Strategy
Formulation for
Competitive Entering New
Positioning, Segments and
Branding and Portfolio
Market Research Acquiring Expansion
for foraying into Market Share
new Product and
Demand
GROWTH

Assessment for
Assessment of the same.
the Current
Product Market
In India.

BIG Strategic Management Consultants 15

 BIG Strategic Management Consultants

Thank You