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Coffee Market – India

March 2011

increasing urbanization and higher frequency of eating out has fueled growth in the market Market Drivers: Drivers & Challenges Rising demand for ready to drink (RTD) coffee Export promotion schemes for coffee Favorable demographics Growing disposable income Trends Global players foraying into the Indian market Investments made by PE players indicates industry potential Emergence of Organic Coffee Growth of Franchising of emerging coffee retail shops Brand expansion into smaller cities Indian coffee retail market is dominated by global players.PPT 2 .Executive Summary The organized coffee market in India is estimated to be worth X bn in 20-Karnataka accounts for ~X% of India’s total coffee production Changing consumer lifestyles. specially in the organized coffee retail segment Two major domestic players dominating the market are Company 1 & Company 2 LE P M A S Challenges: Harmful to human health Large number of licenses to be acquired Competition COFFEE MARKET IN INDIA 2011.

•Market Overview •Foreign trade Export Import •Drivers & Challenges •Trends •Competition •Key Developments COFFEE MARKET IN INDIA 2011.PPT 3 .

Southern states like State 1 and State 2 dominate coffee production in India Production – Overview • Coffee production in India is growing slowly • Although the production gets hampered due to delayed and inadequate pre-blossom showers across the growing regions in South India Size & Growth – Volume Arabica ‘000 mt 400 300 200 100 0 Robusta • Southern parts of India account for the major share in coffee production • The largest producers include State 1 and State 2 • Karnataka accounts for ~X% of India’s total coffee production Production in the state is estimated to rise to XX tonnes in 20--.up from XX tonnes in 20-- LE P M A S +Q% a x y b x y 2007-08 c x y 2008-09 d x y e x y 2006-07 2009-10 2010-11e* State-wise Segmentation C% D% B% State1 State 2 State 3 Others • However. the production is hampered sometimes due to pest attacks also • The organized coffee market in India is estimated to be worth XX bn in 20-- A% Source: COFFEE MARKET IN INDIA 2011.PPT 4 . up from XX tonnes in 20-State 2’s production is estimated to be XX tonnes in 20XX.

PPT 5 .Drivers & Challenges – Summary Drivers Rising demand for ready to drink (RTD) coffee Export Promotion schemes for coffee Favourable demographics Growing disposable income Challenges Harmful to human health Large number of licenses to be acquired COFFEE MARKET IN INDIA 2011.

Trends – Summary Global players foraying into the Indian market Brand expansion into smaller cities Key Trends Investments made by PE players indicates industry potential Growth of Franchising of emerging coffee retail shops Emergence of Organic Coffee COFFEE MARKET IN INDIA 2011.PPT 6 .

especially in the organized coffee retail segment Indian Coffee Marketing System Coffee Marketing System • Organized modern formats like malls and supermarkets have also become a favorite destination for the outlets • Master companies are readily tying up with small franchisors and mall owners to promote their brand LE P M A S Y% Route 1 Route 2 Route 3 Market share (20--) Company 1 Z% Company 2 Others • In order to reach a larger younger audience. petrol pumps and highways X% Source: COFFEE MARKET IN INDIA 2011. institutions. players are opening chains of outlets outside colleges.The market is highly competitive with a large number of Indian and foreign players Overview • Market is highly competitive with a large number of Indian and foreign players • Growing trend of consumption of different varieties of coffee and increasing brand consciousness has led to the increase of global player footprints • Indian coffee retail market is dominated by global players.PPT 7 .

have decreased by x % in value terms. mainly due to the shift in composition of instant coffee exports to xx. from retail to bulk packs • Company makes efforts to facilitate out of home consumption and has increased the number of “x“ • Offers various varieties of coffee under the brand name Nescafe. Product B LE P M A S COFFEE MARKET IN INDIA 2011.Major Coffee Players in India (1/8) Company Snapshot: Company 1 Corporate Information Headquarters Founded Products Key People City 1 19-Product 1 Person 1 Financial Performance Revenue INR bn 80 60 40 20 0 Revenue Profit / Loss d c a b Profit INR bn 10 8 6 4 2 0 2007 2008 2009 2010 Business Highlights • Is a subsidiary of xx • Export sales at xx mn. such as Product A.PPT Source: 8 .

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