Market Research Report : Branded chocolate market in india 2012

Branded Chocolate Market IndiaBranded Chocolate Market – India

February 2012

Executive Summary

Market Indian Confectionery industry is considered to be growing at a1% CAGR over 20‐‐‐‐‐

India is considered to be laden with great potential for growth of chocolates

Increased availability of a2 chocolates and growing taste for a3 chocolates aided with higher purchasing power will lead to further development of the market

D i &

Drivers– Increase in disposable income

Challenges–Rise in cocoa prices

Drivers & Challenges

–Chocolate gifting–Attractive pricing–Low per capita consumption of chocolates

p

–High entry barriers

–High excise and import duties

Premium chocolates

Dark chocolatesTrends Chocolate boutique

Entry of retailers and confectioners

Competition

Major Players

Company 1 Company 3

2

Company 2 Company 4

BRANDED CHOCOLATE MARKET IN INDIA 2012.PPT

•Introduction•Market Overview•Import Export•Drivers & Challenges•Government Participation p•Trends•CompetitionCompetition•Strategic Recommendations•Appendix

3

•Appendix


Greater consumer spending aided with demand for quality products to boost the market

•Chocolates though considered as impulse products in India are witnessing growth over time

Chocolate Market – Overview Market Size and Growth

40INR bn

%• Per capita consumption of chocolate is x1 gms

• y1% of the consumption of chocolate is accounted for by the urban population base

• Initially, chocolates were limited to certain flavours10

20

30p% T

SR

QP

Initially, chocolates were limited to certain flavours such as milk or caramel With the passage of time, chocolate has been introduced in new variants such as v1, etc.

Even variants such as chocolates with dry fruits and nuts

020--20--20--20--20--

Segmentation of Consumption (2011)also created a new trend

• Indian branded chocolate market is dominated by player 1 and player 2 This proves to be detrimental to the small players as well

c4%

c3%

c1%

Segment 3Segment 2Segment 1

as new entrants in the market

• Rise in disposable income and enhanced availability of products have resulted in the growth of the sector

• Further, v2 chocolates which are in most cases c2%

Segment 4Segment 3

4

imported have also witnessed a growing trend

Source:


Taste for premium products, specially by rich urbanites, have led to increase in imports of chocolates

2,500INR mn

Imports • Imports of chocolates have increased considerably owing to the demand generated for imported

Imports (Value)

5001,0001,5002,000

,q% D

CBA

g g pchocolates

• Imported chocolates are seen as v3 products and considered as v4 products

• Imported brands have contributed y2% of the total0

20-----20-----20-----20-----

Imported brands have contributed y2% of the total sales during festive seasons in 20‐‐ compared to y3% in 20‐‐

Segmentation – Countrywise (2009‐10) Segmentation – Countrywise (2010‐11)

f%

a%

Country 4Country 3Country 2Country 1

f1%a1%

Country 10Country 9Country 8Country 7

e%d%

c%

b%

Country 6Country 5Country 4

e1%d1%

c1%

b1%Country 12Country 11Country 10

5

Source:


Drivers & Challenges – Summary

Challenges

Drivers

Tradition of Gifting Chocolates

Rise in cocoa prices

High entry barriers

Attractive pricing

Increase in disposable income

L it ti f

High excise and import duties

Low per capita consumption of chocolates

6BRANDED CHOCOLATE MARKET IN INDIA 2012.PPT

Government Participation – Summary

Prevention of Food Adulteration Act 1954Adulteration Act 1954

InitiativesInitiatives

Food Safety and Standards A 2006

Government policiesAct 2006

Go e e t po c es


Trends – Summary

Demand for premium chocolates

Surfacing of dark chocolates

`

KeyTrends

Concept of chocolate boutique

Demand for healthy options

8

Entry of retailers and confectioners

SAMPLE Public: Foreign Company – Company 1 (1/4)

Company Information Offices and Centres – India

Corporate AddressPlace 1, Country 1

CiTel No. +123456

Fax No. +123456

Website http://www.abc.com/index.html

Year of Incorporation 19‐‐

City

Products and Services

Ticker Symbol ‐‐‐‐

Stock Exchange

Key People


Category Products/Services

Category 1 Product 1

N D i ti

Head Office



Name Designation

Person 1 D1

Person 2 D2

Person 3 D3

9

Source:

POLYMER MARKET IN INDIA 2012.PPT

Person 4 D4

i i l S h K i

Public: Foreign Company – Company 1 (2/4)

Financial Snapshot Key Ratios

Profit / Loss

Total Income

80,000 10,000

Total IncomeINR mn

X

ProfitINR mn

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability Ratios

Operating Margin a a1 a2 a3 a4

0

20,000

40,000

60,000

0

5,000

20‐‐20‐‐

W

20‐‐

V

20‐‐

U

Net Margin b b1 b2 b3 b4

Profit Before Tax Margin c c1 c2 c3 c4

Return on Equity d d1 d2 d3 d4

Return on Capital Employed e e1 e2 e3 e4

Return on Working Capital f f1 f2 f3 f4

Return on Assets g g1 g2 g3 g4

Financial Summary

• The company incurred a net profit of INR ‐mn both in FY 2010 and INR ‐mn in FY 2009

• The company reported total Income of INR ‐mn in FY 2010, registering an increase of p1% over FY 2009

Return on Fixed Assets h h1 h2 h3 h4

Cost Ratios

Operating costs (% of Sales) i i1 i2 i3 i4

Administration costs (% of Sales)

j j1 j2 j3 j4

Interest costs (% of Sales) k k1 k2 k3 k4registering an increase of p1% over FY 2009

• The company earned an operating margin of p2% in FY 2010 a decrease of ‐‐ percentage points over FY 2009

• The company reported debt to equity ratio of ‐ in FY 2010, a decrease of p3% over FY 2009

Interest costs (% of Sales) k k1 k2 k3 k4

Liquidity RatiosCurrent Ratio l l1 l2 l3 l4

Cash Ratio m m1 m2 m3 m4

Leverage RatiosDebt to Equity Ratio n n1 n2 n3 n4

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy)Market Capitalization (INR) A1Total Enterprise Value (INR) A2EPS (INR)

Debt to Capital Ratio o o1 o2 o3 o4

Interest Coverage Ratio p p1 p2 p3 p4

Efficiency Ratios

Fixed Asset Turnover q q1 q2 q3 q4

Asset Turnover r r1 r2 r3 r4

Current Asset Turnover s s1 s2 s3 s4

10

Source:

EPS (INR) A3PE Ratio (Absolute) A4


Working Capital Turnover t t1 t2 t3 t4

Capital Employed Turnover u u1 u2 u3 u4

Improved Decline


Public: Foreign Company – Company 1 (3/4)

Key Business Segments Key Geographic Segments

100%80%

100%

50% 100%

0%20%40%60%80%

100%

Key Recent Developments

0%20‐‐

0%20‐‐

Description News

• Compnay1 has presence across India with ‐manufacturing facilities and ‐ branch offices

•Operates as a subsidiary of ABC

Business Operations• Is considered as one of India’s ‘Recognition 1’ and ‘ Recognition 2’

• Has announced establishment of its first ‐ facility in India in 2010 which is slated to be operational in 2012

• Employs k1 people directly and more than k2 indirectly in India

11

Source:

• Employs k1 people directly and more than k2 indirectly in India


SAMPLE Private: Foreign Company – Company 1 (1/4)

Company Information Offices and Centres – India

Corporate Address

Place 1, Country 1

Tel No. +123456

Fax No. N.A.

bwww.abc.com/index.html


City Website

Year of Incorporation 19‐‐

Key People


N D i ti

Head OfficeCategory Products/Services


Name Designation

Person 1 D1

Person 2 D2

Person 3 D3




12

Source:

Person 4 D4


K i

Private: Foreign Company – Company 1 (2/4)

i i l S h Key Ratios

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability Ratios

Operating Margin a a1 a2 a3 a4

Profit / Loss

Total Income

30,000 2,500

Total IncomeINR mn

ProfitINR mn

P

Financial Snapshot

Net Margin b b1 b2 b3 b4

Profit Before Tax Margin c c1 c2 c3 c4

Return on Equity d d1 d2 d3 d4

Return on Capital Employed e e1 e2 e3 e4

Return on Working Capital f f1 f2 f3 f4

Return on Assets g g1 g2 g3 g45 000

10,000

15,000

20,000

25,000

500

1,000

1,500

2,000P

0N

M

Return on Fixed Assets h h1 h2 h3 h4

Cost Ratios

Operating costs (% of Sales) i i1 i2 i3 i4

Administration costs (% of Sales)

j j1 j2 j3 j4

Interest costs (% of Sales) k k1 k2 k3 k4Financial Summary

0

5,000

02010200920082007

Interest costs (% of Sales) k k1 k2 k3 k4

Liquidity RatiosCurrent Ratio l l1 l2 l3 l4

Cash Ratio m m1 m2 m3 m4

Leverage RatiosDebt to Equity Ratio n n1 n2 n3 n4

• Company incurred a net profit of INR ‐‐mn in FY 2010, as compared to net profit of INR ‐‐mn in FY 2009

• It reported total Income of INR ‐‐mn in FY 2010, registering an increase of p4% over FY 2009

Debt to Capital Ratio o o1 o2 o3 o4

Interest Coverage Ratio p p1 p2 p3 p4

Efficiency Ratios

Fixed Asset Turnover q q1 q2 q3 q4

Asset Turnover r r1 r2 r3 r4


• Earned an operating margin of p5% in FY 2010 a decrease of ‐‐ percentage points over FY 2009

• The company reported debt to equity ratio of ‐‐ in FY 2010, a decrease of p6% over FY 2009

13

Source:


Working Capital Turnover t t1 t2 t3 t4

Capital Employed Turnover u u1 u2 u3 u4

Improved Decline




Description News

• It has ‐ company‐owned manufacturing facilities at place 1 place 2 place 3 place 4 placeManufacturing

• It has ‐ company‐owned manufacturing facilities at place 1, place 2, place 3, place 4, place 5 and place 6 and ‐ sales offices in place 7, place 8, place 9 and place 10

Acquisition• In 2010, it was acquired by player 1 in an INR ‐‐ bn acquisition and has been functioning as an operating subsidiary

Business Operations

• Its ‘Product 1’ is considered to be the ‘T1 Standard’ for chocolates in India

• Sales for the period between Jan‐Sept grew t2% in India

• Company has witnessed this t3% growth compared to a growth of t4% each year before 2009 and over t5% in 2010Business Operations 2009 and over t5% in 2010

• It spent INR ‐‐ bn on selling and distribution in the year 2010, registering a t6% higher allotment than that of the previous year

• It has increased its direct reach to consumers by t7% in 2011

Miscellaneous• It has pioneered cocoa cultivation in India since the time of 19‐‐•Has also worked with U1 University in projects related to cocoa research and released clones and hybrids that help in improving cocoa yield

14

Source:




Description News

• It has won the ‘Z1 Award’ for its ‘C1’ campaign

Awards

• It has won the Z1 Award for its C1 campaign

•Has won Z2 Awards

• It won Z3 awards

•Has won Z4 Awards 2011•Has won Z4 Awards 2011

15

Source:


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Market Research Report : Branded chocolate market in india 2012

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