Market Research Report : Snacks market in india 2013

Snacks Market IndiaSnacks Market – India
May 2013

SAMPLE Executive Summary
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 these products are gaining popularity amongst thembusy urban lifestyle, these products are gaining popularity amongst them
Drivers
—Rapid Urbanization
G i I d C ti
Challenges
—Rise in Packaging Costs
U i d S t d L l
Drivers &
Challenges
—Growing Income and Consumption
—Increasing Working Women Population
—Marketing Campaigns
—Growing Retail Market
—Convenience Factor
—Unorganized Sector and Local
Players
—Competitive Price Points
—Health Concerns
—Convenience Factor
Exhibitions and Events
Product Innovation
Corporate Activities
Trends
Launch of Various Ethnic Snacks
Innovative Promotional Campaigns
Introduction of Healthy Snacks
Competition
Major Players
Corporate Activities
Inclusion of Nuts as Snacking Option
Introduction of Healthy Snacks
2SNACKS MARKET IN INDIA 2013.PPT
Competition
Company 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 Economic Indicators (1/3)
INR tn
15
b4a3
GDP at Factor Cost: Quarterly
14
13
12
11
c4
d4
b3
c3
d3
a2
b2
c2
d2
a1
b1
c1
d1
10
Q4Q3Q2Q1
2012‐132011‐122010‐112009‐10
Inflation Rate: Monthlyy
0 8
1.0 e5
%
e2
0.2
0.4
0.6
0.8
e4e3e1
0.0
Dec 2012 ‐ Jan 2013Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012Sep 2012 ‐ Oct 2012Aug 2012 ‐ Sep 2012

SAMPLE
Food processing can be sub‐segmented into numerous categories
which include snacks as well
Market Segmentation
Food Processing
Fruits &
X Y
Marine
Z U
Vegetables
X Y
Products
Z U
A Beverages C
q Baked Products Snacks rp Others
Focus of the report

SAMPLE
The Indian snacks market is expected to witness remarkable
growth…
Indian Market – Overview (1/5)
• Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily• 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 sectorwell as the unorganized sector
• During 20__, Indian snack market was valued around INR X1 bn
Market Si e & Gro thMarket Size & Growth
250
300
INR bn
y
x6
x5
50
100
150
200 x4
x3
x2
x1
0
50
20__20__20__20__20__20__

SAMPLE
…in the next few years with increased consumption amongst
consumers
• Lots of varieties of snacking options are available in
Market Segmentation (20__)
Organized Sector
the Indian market which is another factor behind
making it competitive
• Players keep on innovating with flavors as
consumers want variety and taste
S k i i l h d t d Unorganized Sector• Snacks is an impulse purchase product and
consumers in general are not loyal to any particular
brand
a1
a2
• Despite the presence of organized players such as
PepsiCo, ITC and Haldirams, unorganized sector
dominates the market
• Local and regional players raised market share• 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
markets and upon its saturation
gradually shifted its focus towards
other lower tier markets

SAMPLE Lots of varieties of snacks are available in the market and…
•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 happeninglaunch 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
Change in Market Share of Major Players
Market Share (20 ) Market Share (20 )Market Share (20__) Market Share (20__)
A6
A5A4
A3
B7
B6
B5
B4B
A
A3
A2
A1
B4
B3
B2
B1
F
E
D
C
B2
Others

SAMPLE 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
Western Traditional
Segmental Share (20__)Market Share of Various Snacks (20__)
A
g
f
e
a
O h
F
E
C
B
A
b1
a1
B
A
d
Others
D
C
c
b

SAMPLE
Western snack segment is already very popular amongst
consumers…
Market Segmentation – Western Snacks (2/3)
Western Snacks
• Western snacks include products such as chips, wafers, crisps
and extruded snacks
 Potato chips account for the major share in Indian snacks marketB  Potato chips account for the major share in Indian snacks market
• XX
• XX
B
A
B
A
Organized‐Unorganized Breakup
O ga ed U o ga ed ea up
(20__)

SAMPLE Consumer Insights on Snacks (1/11)
Sample Size 80
Survey Duration &
Period
3 Weeks – March 2013
Sample Sources
Social Media Websites and
Other Related Forums
Quantitative
Representation Used
Percentage
• Survey on snacks was conducted on social
media sites and other related forums
• Overall survey has been kept close‐ended to
Profile of Respondents – Age Wise (years)
41 & above
36‐40
31‐35
25‐30
18‐24
y p
capture specific information according to
requirements
• The survey has been conducted amongst a
group of general consumers heading from
DE
C
B
36 4025 30
major Indian cities including Mumbai, Delhi,
Kolkata, Pune, Hyderabad, Bangalore among
others
A

Options
Q: Do you consume snacks?
Options
Q: If you don’t consume snacks at present, would you
like to try it in future
Options
1) Yes
2) No
Options
1) Yes
2) No
Consumption Share of Snacks
B
Share of Potential Future Consumers
DD
A
C
NoYesNoYes

Options
Q: What type of snacks do you prefer?
Options
Q: If you consume both, which one do you prefer
more?
1) X
2) Y
3) Z
Options
1) A
2) B
Consumption Pattern Preference‐wise Share of ‘Both’ Category
A
70
80
%
C
Y
B
40
50
60
70
X
10
20
30
B
A
0
BothYX

SAMPLE Import of Major Types of Snacks (1/2)
A Snacks
2,000
‘000 unitINR mn
300 C
ValueVolume
f
e F
E
D
C
B
A
Major Importing Nations – Value Wise (2011)
500
1,000
1,500
2,000300
200
100
S
DR
Q
B
P
A
e
d
c
b
a
FC
B Snacks & Mixtures
00
20__20__20__20__
Major Importing Nations – Value Wise (2011)
u p
T
S
R
Q
P
6,000
8,000
‘000 unitINR mn
200
150
E
ValueVolume
t
s
r
q
U
T
0
2,000
4,000100
50
0
20__
W
H
20__
V
G
20__
U
F
20__
T
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)
________

SAMPLE Drivers & Challenges – Summary
Drivers
Rapid Urbanization
Challenges
Competitive Price Points
Growing Income and Consumption
Marketing Campaigns
i ki
Unorganized Sector and Local Players
Rise in Packaging Costs
Increasing Working Women
Population
Growing Retail Market
Health Concerns
Convenience Factor

SAMPLE Trends – Summary
Exhibition and X
Product Y
i i i
`Key Trends
Corporate Activities
Inclusion of A as Snacking Option
Launch of Various Q Snacks
d f k
Innovative Promotional Campaigns
Introduction of P Snacks

SAMPLE Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2012)
Company A Company B
Market Capitalization (INR mn) xx xx
Share Price (INR) xx xx
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

SAMPLE SAMPLE Competitive Benchmarking (2/5)
SKey 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 1.41
0
CompanyCCompany BCompany A
• xx

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 xx
Head 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 Ratios
Operating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%
Net Profit/LossTotal Income
1500
2000 150
INR mn INR mn
d
c
b
a
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 Ratios
Operating 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 Ratios
Current Ratio 0.43% 2.49 2.48 4.42 2.60
Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09
Leverage Ratios
Debt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02
b i l i
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn) XX
Total Enterprise Value (INR mn) XX
EPS (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 Ratios
Fixed 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
20
EPS (INR) XX
PE 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
SNACKS MARKET IN INDIA 2013.PPT

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 – ITC Ltd. – SWOT Analysis
(5/5)
• xx • xx
WS
TO
• xx• xx

SAMPLE Strategic Recommendations (1/4)
Product Price
• XX • XX
Promotion Place of DistributionPromotion Place of Distribution
• XX • XX

SAMPLE Strategic Recommendations (3/4)
A B
• XX • XX
O
T
H
E
RR
S
T
R
C
A
T
E
G
I
• XX
I
E
S

Appendix
Ratio Calculations
Operating Margin
(Operating
Income/Revenues)*100
Ratio Calculations
Current Ratio
Current 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 y
Equity
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 Medium
Leading Newspapers
Primary Research
Interviews
Leading 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

Thank you for the attention
Snacks Market – India report is part of Netscribes’ Food & Beverage Series.
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Market Research Report : Snacks market in india 2013

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Market Research Report : Snacks market in india 2013