Market Research Report :Ready to eat market in india 2013

Ready To Eat Market IndiaReady To Eat Market – India

April 2013

SAMPLE Executive Summary

Market

Indian ready to eat market was valued at INR xx mn in 20__ and is estimated to reach INR yy mn by 20__With changing consumer behavior due to various factors such as increasing income levels and hectic lifestyle these products are gaining popularity amongst themhectic lifestyle, these products are gaining popularity amongst them

Drivers—Growing Income and ConsumptionR id U b i ti

Challenges—Poor Supply Chain and Distribution Facility

Drivers & Challenges

—Rapid Urbanization—Increasing Working Women Population—Convenience Factor—Growing Retail Market—Marketing Campaigns

Distribution Facility—Consumer Behavior and Perception

—Rise in Packaging Costs—Health Concerns

—Marketing Campaigns

Exhibitions and Events High Focus on ExportAdaptation of New Technologies

Trends

Gaining Special Attention in Retail Format StoresRetailers Going for Private Label RTE Meals Launching Innovative and Region Specific Products

CompetitionMajor Players

Adaptation of New Technologies Innovative Promotional Techniques

Launching Innovative and Region Specific Products Frozen RTE Products Gaining Popularity

2READY TO EAT MARKET IN INDIA 2013.PPT

CompetitionCompany A Company B. Company C

SAMPLE •Macro‐Economic Indicators

•Introduction

•Market Overview•Market Overview

•Market Segmentation

•Consumer Insightsg

•Import & Export

•Drivers & Challenges

•Government Rules & Policies

•Government Participation

•Trends•Trends

•Competitive Landscape

•Strategic Recommendations


g

•Appendix

SAMPLE Macro Economic Indicators (1/3)

INR tn

14b4c4b3

a2a1

GDP at Factor Cost: Quarterly

13

12

11

d4c3

d3

a2b2

c2

d2

a1b1

c1

d1

10

Q4Q3Q2Q12012‐132011‐122010‐112009‐10

Inflation Rate: Monthlyy

0 8

1.0

%

e3e1

0.2

0.4

0.6

0.8

e5e4e2

4

0.0

Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012Sep 2012 ‐ Oct 2012Aug 2012 ‐ Sep 2012Jul 2012‐ Aug 2012

READY TO EAT MARKET IN INDIA 2013.PPT

SAMPLE Ready to eat food is an emerging market that serves the convenience factor of consumers

Ready To Eat Packaged Food

•Ready to Eat (RTE) can be defined as food products that constitute complete meals, require minimal processing, y ( ) p p , q p g,if any, typically requiring re‐heating to desired temperature or addition of water

Food Processing – Classification

A Dairy C Staples Beverages E

bb cc Ready to Eat ddaa ee


SAMPLE The Indian ready to eat market is at its nascent stage and is expected to witness remarkable growth…

Indian Market – Overview (1/3)

• Ready to Eat (RTE) foods were introduced in India originally in 1987 but the concept failed that time• Ready to Eat (RTE) foods were introduced in India originally in 1987, but, the concept failed that time

• It has recently started gaining popularity amongst 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 exportsplayers earn a significant share of their revenue via exports

•During 20__, Indian ready to eat market was valued around INR xx mn

Market Si e & Gro thMarket Size & Growth

4,000

5,000

INR mn

X%

h

g

1 000

2,000

3,000

4,000 X%f

ed

cba


0

1,000

20__20__20__20__20__20__20__20__

SAMPLE …in the coming years with increased consumption amongst consumers

Indian Market – Overview (2/3)

• Major players of this segment are A, B, C, D among others• xx

Major players of this segment are A, B, C, D among others• A is the market leader in this segment holding ~y% market share

Market Segmentation (20__)

x1

Major Player’s Share (20__)

y1 y2

x2


Unorganized SectorOrganized Sector BA

SAMPLE 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

Segmental Shares (20__)

Classification of RTE ProductsZ1

Shelf Stable Products Frozen Products

Z2


*Note: On the basis of products that are available in the market

YX

Frozen RTE products are gradually witnessing surge in its demand

Market Segmentation – Frozen RTE Products (3/4)

Frozen RTE Products

• Frozen RTE foods refer to those processed foods that need refrigeration in order to maintain nutritional value and taste

• xxa

• xx

• xx

b Export

Domestic

Share of Frozen RTE


S a e o o eConsumption

SAMPLE Consumer Insights on RTE Products (1/8)

Sample Size 100Survey Duration &

Period3 Weeks – February 2012

Sample SourcesSocial Media Websites and

Other Related ForumsQuantitative

Representation UsedPercentage

Gender Wise Age Wise (in years) Employment and Marital Status Wise

Profile of Respondents

A2B1

C3

A1

B3

B2B1

C4

C2C1

Employed and Single

Student


FemaleMale 35‐4425‐3418‐24

Not Employed

Employed and Married

p y g

SAMPLE Consumer Insights on RTE Products (2/8)

• 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

• The survey has been conducted amongst a group of general consumers heading from major• 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

RTE Consumption Share

Q: Do you consume Ready to Eat (RTE) products?

Options1) Yes

Q: Do you consume Ready to Eat (RTE) products? Y

1) Yes2) No

X


NoYes

SAMPLE Import of Major Types of RTE Products (1/2)

Cereal Based Ready to Eat

2,000

‘000 KgINR mn

300 C

ValueVolumefde

C

B

A

Major Importing Nations – Value Wise (2011)

500

1,000

1,500

2,000300

200

100 DR

Q

B

P

A

a

bc

OTHERS

E

D

C

Meat Based Ready to Eat

0020__

S

20__20__20__

P a

Major Importing Nations – Value Wise (2011)

k

jg

hi

T

S

R

Q

P

1 000

1,500

‘000 KgINR mn

100

80

G

F

E

ValueVolume

f

OTHERS

T

0

500

1,00060

40

20

020

W

H

20

V

20

U

20

T


Note: HS Code 19019090 (Frozen and processed RTE preparations of flour meal, starch and malt extract ), HS Code 160100 (Sausages and similar products prepared from meat)

20__20__20__20__

SAMPLE Drivers & Challenges – Summary

Challenges

Poor Supply Chain and DistributionDrivers

Growing Income and Consumption

Poor Supply Chain and Distribution Facility

Deficit in Power Supply

Rapid Urbanization

Increasing Working Women Population

Consumer Behavior and Perception

Rise in Packaging Costs

Convenience Factor

Growing Retail Market

Health Concerns

Marketing Campaigns


SAMPLE Trends – Summary

Exhibitions and xx

High Focus on yyHigh Focus on yy

Adaptation of New Technologies

`Key TrendsInnovative Promotional Techniques

Gaining Special Attention in zz

Retailers Going for xx RTE Meals

Launching Innovative and bb


zz Products Gaining Popularity

SAMPLE Competitive Benchmarking (1/5)

Public Trading Comparables (FY 2012)

Company A Company B Company C Company D Company E

Market Capitalization (INR mn) xx xx xx xx Xx

Share Price (INR) xx xx xx xx xx

EV/EBITDA (x) xx xx xx xx xx

/EV/Revenue (x) xx xx xx xx xx

PE Ratio xx xx xx xx xx


Note: Top 5 Public companies based on the Market Capitalization; Market Capitalization and Share Price are as of 8/02/2013 and PE ratio is as of 1/03/2013

SAMPLE Competitive Benchmarking (2/5)

Key Ratios of Top 3 Companies – Operational Basis (FY 2011) (1/3)

40

% Net MarginOperating Margin

2 49

11.04

30.39

7.30

21.73

10

20

30

40

2.49 1.410

CompanyCCompany BCompany A

• xx


SAMPLE Major Public Companies ‐ Summary

10,000

Net Profit/Loss

Size of the Bubble represents Market Capitalization in INR mn

5,000

m3

0 m4m2

m3

m1

‐10,000

‐5,000

7,0006,0005,0004,0003,0002,0001,0000

Total income

15,00014,00013,00012,00011,00010,0009,0008,000

Player DPlayer CPlayer BPlayer A


Note: All figures are in INR mn and are based on the latest financials available ie 2012 and ITC Ltd. has not been included as major share of its revenue comes from other non‐food segments

yyyy

SAMPLE Public: Domestic Company – Player A (1/5)

Company Information Offices and Centres – India

Corporate Address xx

Tel No. xx

Fax No. xx

Website xx

Year of Incorporation xx

Products and Services

Ticker Symbol xx

Stock Exchange xxHead OfficeCity A

Key People

Products and Services

N D i ti

Category Products/Services

RTE Products xx Name DesignationRTE Products xx

Other Food Products xx


SAMPLE i i l S h K i

Public: Domestic Company – Player A (2/5)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2012‐11)

2012 2011 2010 2009

Profitability RatiosOperating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%

Net Profit/LossTotal Income

1500

2000 150INR mn INR mn

dc

ba

Net Margin ‐6.73 4.02% 10.75% 12.08% 7.61%

Profit Before Tax Margin ‐5.22 6.52% 11.74% 15.66% 11.00%

Return on Equity ‐7.25 5.51% 12.76% 13.22% 9.02%

Return on Capital Employed ‐2.22 8.50% 10.73% 12.11% 16.70%

Return on Working Capital ‐7.92 20.82% 28.74% 28.25% 56.05%

Return on Assets ‐1.89 6.67% 8.56% 10.77% 14.08%

0

500

1000

1500

0

50

100

2012

D

2011

C

2010

B

2009

a

A

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

Return on Fixed Assets ‐4.90 26.02% 30.92% 33.44% 41.15%

Cost RatiosOperating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70%

Administration costs (% of Sales)

5.78 33.11% 27.33% 22.91% 25.64%

Interest costs (% of Sales) ‐0.24 0.82% 1.06% 1.21% 1.74%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

Interest costs (% of Sales) % % % %

Liquidity RatiosCurrent Ratio 0.43% 2.49 2.48 4.42 2.60

Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09

Leverage RatiosDebt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02

b i l iKey Financial Performance Indicators

Indicators Value (22/02/2012)Market Capitalization (INR mn) XXTotal Enterprise Value (INR mn) XXEPS (INR)

Debt to Capital Ratio 5.46% 0.24 0.23 0.01 0.02

Interest Coverage Ratio ‐12.08% 9.10 10.35 10.14 8.78

Efficiency RatiosFixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69

Asset Turnover 14.00% 0.89 0.78 0.88 0.92

Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26


EPS (INR) XXPE Ratio (Abs) XX

Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66

Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13

Improved Decline


Key Business Segments Key Geographic Segments

ExportsIndiaProcessed and Preserved FoodsTraded Goods

0%

50%

100%

FED

C

B

A

0%

50%

100%

TR

S

P

Q

U

0%2012201120102009

0%201120102009 2012

Business Highlights

Description News

Overview •XX



Description News

Business Highlights

Global Presence • XX

Quality Assurance • XXQ y XX

E i XXExpansions • XX


SAMPLE Public: Domestic Company – Player A – SWOT Analysis (5/5)

• XX • XX

S W

TO

• XX• XX


SAMPLE Strategic Recommendations (1/2)

A B

•XX •XX

C

•XX


Appendix

Ratio Calculations

Operating Margin (Operating Income/Revenues)*100

Ratio Calculations

Current RatioCurrent Assets / Current Liabilities

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before Tax / Revenues *100

(N I / Sh h ld

Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity Total Liabilities / Shareholders E it

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

q yEquity

Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Return on Working Capital (EBIT / Working Capital) *100

Return on Assets (EBIT / Total Assets)*100

Return on Fixed Assets (EBIT / Fixed Assets) *100

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Operating Costs (% of Sales) (Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Sales / (Shareholders Equity +


Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover Sales / (Shareholders Equity + Total Debt)

Sources of Information

Secondary Research

Print MediumLeading Newspapers

Primary Research

InterviewsLeading Industry VendorsLeading Newspapers

Journals / Magazines

Business Magazines

Electronic Medium

Leading Industry Vendors

Industry Stakeholders

Industry Experts

Surveys Conducted in Social / Technology Focused Forums

Company Websites

Government Websites / Resources

Online Magazines

Online Journals / Articles

Forums

/

Premium Databases

Social Networking Space


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Market Research Report :Ready to eat market in india 2013

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