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Nutraceuticals Market in India 2012 - Sample


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The healthcare industry in India is showing great progress. There has been considerable increase in spending on healthcare backed by the growing purchasing power of individuals. Moreover, with a lot of importance being given to preventive medication, the nutraceuticals market in India is set to flourish. It is one of the booming markets in India. Predominantly vitamins and minerals derived from oral pills were used for curing certain diseases and ailments. People today are becoming more prone to consume immunity enhancing food supplements and wellness related products. This is promoting the growth of the industry with players diversifying into production of various new varieties of products. Further assistance from the government and increasing demand from consumers will fuel growth in this market.

The report begins with an introduction to the Indian nutraceuticals market and its classification on the basis of the ingredients and benefits incurred from them. This is followed by the market overview section which provides the market size and growth as well as the market share of the various segments in the market, namely, functional foods, dietary supplements and functional beverages. A detailed description of each segment in the market along with the dominant products in the particular category has also been provided. Focusing on one the major sub-segments, an overview of the probiotic market in India has been included. This segment has been highlighted owing to the fact that it is one of the most promising categories under the nutraceutical market and has huge growth potential in the near future with growing interests of players. The genesis of probiotics has been highlighted showing the types dominant in India and the key therapeutic benefits derived from them. This section also contains information regarding the market size and growth of probiotics in functional foods in India as well as the key segments and the active players in this space.

This is followed by an analysis of the drivers leading to growth in the market. This includes increasing shift towards preventive therapies, increasing disposable income, increase in healthcare spending, increasing shift towards self-medication, changing demographics, growth in pharmacy and wellness related retail chains and favorable pricing environment. The key challenges to the market include lack of standardization, marketing and distribution challenges, high pricing and lack of awareness. Several trends have also been identified in the market and this has been provided in the next section. The key trends include fortified foods, ayurvedic nutraceuticals, foreign tie-ups, players educating consumers, encapsulation, and cosmeceuticals and nanoceuticals. A section on government regulations in the industry has also been included. It discusses the Food Safety and Standards Act 2006 that regulates the industry.

The competition section provides an overview of the competitive landscape in the industry and

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Nutraceuticals Market in India 2012 - Sample

  1. 1. Nutraceuticals Market – IndiaMarch 2012
  2. 2. Executive Summary Market valued at INR b bn in 2011 and is estimated to reach INR f bn in 2015 Market Comprises of three segments, dietary supplements, functional foods and functional beverages India accounts for a mere m% of the total world market for nutraceuticals Probiotics in India generally comes in two forms : Drugs and Packaged foods and beverages Probiotic Major pharmaceuticals companies have become active in this space and are devising newer Market drugs and products, however current drugs are predominant in the area of gastroenterology Players are also devising packaged products like jellies, RTE cookies and smoothies Drivers: Challenges: – – E Increasing shift towards preventive therapies L Increasing disposable income – – Lack of standardization High pricing Drivers &Challenges – – – MP Increase in Healthcare Spending Increasing shift towards self-medication Changing Demographics – – Lack of awareness Marketing and distribution challenges Trends – – A Growth in pharmacy and wellness related retail chains S Favorable pricing environment Fortified foods Ayurvedic nutraceuticals Initiatives by players to educate consumers Encapsulation Foreign tie-ups Cosmeceuticals and Nanoceuticals Major Public Players Major Private PlayersCompetition Company 1 Company 3 Company 5 Company 7 Company 2 Company 4 Company 6 Company 8 NUTRACEUTICALS MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Probiotic Market•Drivers & Challenges•Trends•Government Regulations•Competition•Financial Transactions•Key Developments•Strategic Recommendations•Appendix NUTRACEUTICALS MARKET IN INDIA 2012.PPT 3
  4. 4. Increasing shift towards preventive therapies and increasing disposable income has led to a growing market Market Overview Market Size and Growth • India accounts for only m% of the world INR bn nutraceuticals market 250 • Nutraceuticals market in India is growing at a very f 200 x% e fast pace and is expected to be almost double in 20-- d 150 c from its size in 20-- a b 100 • Increasing shift towards preventive therapies and 50 E increasing disposable income is driving growth in this sector 0 L • Several pharmaceutical companies are entering this P space, realizing that nutraceutical products can be 2010 2011 Market Segmentation (2011) 2012e 2013e 2014e 2015e M supplementary products to their therapeutic A products Segment 1 Segment 2 S • There are more Indian players than multinationals in the market as it is a relatively low technology section compared to pharmaceuticals u • Probiotics is one of the most emerging and nascent v Segment 2 can be further segments in this market with increasing consumer divided into Segment 2a and acceptance and greater player attention expected to Segment 2b drive its growthSource: NUTRACEUTICALS MARKET IN INDIA 2012.PPT 4
  5. 5. Drivers & Challenges – Summary Drivers Increasing shift towards preventive therapies Challenges Increasing disposable income Lack of standardisation Increase in Healthcare Spending Marketing and distribution challenges Increasing shift towards self- High pricing medication Changing Demographics Lack of awareness Growth in pharmacy and wellness related retail chains Favorable pricing environment NUTRACEUTICALS MARKET IN INDIA 2012.PPT 5
  6. 6. Trends – Summary Fortified Foods Ayurvedic Nutraceuticals Foreign Tie-ups Trends` Players Educating Consumers Encapsulation Cosmeceuticals and Nanoceuticals NUTRACEUTICALS MARKET IN INDIA 2012.PPT 6
  7. 7. Major Public Companies – Summary Size of the Bubble represents Market Capitalization in INR bn Net Profit 18 16 h 14 12 10 8 f E 6 d L 4 c b P 2 g a 0 -2 -4 AM S -6 -8 -10 e -12 Revenue 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8Source: Note: All figures are in INR mn for FY 2010 NUTRACEUTICALS MARKET IN INDIA 2012.PPT 7
  8. 8. Public: Domestic Company – Company 1 (1/3) Company Information Offices and Centres – India Corporate Address Tel No. Fax No. Website Year of Incorporation L E Ticker Symbol Stock Exchange MP Products and Services Category Products/Services SA Head Office Segment 1 Product 1, Product2 Key People Segment 2 Product 1, Product 2, Product 3 Name Designation Segment 3 Product 1, Product 2, Product 3 Person A CEO & Executive Director Product 1, Product 2, Product 3, Person B Chief Financial Officer Segment 4 Product 4, Product 5 Person C Executive Director of Operations Person D Company SecretarySource: Company Website; Annual Reports; Databases NUTRACEUTICALS MARKET IN INDIA 2012.PPT 8
  9. 9. Public: Domestic Company – Company 1 (2/3) Financial Snapshot Key Ratios Total Income Net Profit / Loss y-o-y change Particulars 2011 2010 2009 2008 INR bn INR bn (2011-10) d250 c2 6 Profitability Ratios40 b2 Operating Margin a2 4 Net Margin30 Profit Before Tax Margin20 c1 d1 b1 2 Return on Equity10 a1 Return on Capital Employed 0 0 Return on Working Capital 2008 2009 2010 2011 Return on Assets E Financial Summary Return on Fixed Assets Cost Ratios PL • The company incurred a net profit/net loss of INR X mn in FY 20XX, as compared to net profit/net loss of INR Y mn in FY 20YY • The company reported total Income of INR XX mn in FY 20XX, Operating costs (% of Sales) Administration costs (% of Sales) M registering an increase/decrease of X per cent over FY 20YY Interest costs (% of Sales) Liquidity Ratios A • The company earned an operating margin of X.X per cent in FY 20XX Current Ratio an increase/decrease of X.X percentage points over FY 20YY Cash Ratio increase/decrease of X.X per cent over FY 20YY Key Financial Performance Indicators Indicators S • The company reported debt to equity ratio of X.XX in FY 20XX, an Value (dd/mm/yyyy) Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Market Capitalization (INR) Fixed Asset Turnover Asset Turnover Total Enterprise Value (INR) Current Asset Turnover EPS (INR) Working Capital Turnover PE Ratio (Absolute) Capital Employed TurnoverSource: Annual Reports; Netscribes Analysis; Databases Improved Decline NUTRACEUTICALS MARKET IN INDIA 2012.PPT 9
  10. 10. Public: Domestic Company – Company 1 (3/3) Key Business Segments Key Geographic Segments Segment 1 Segment 3 Segment 5 Country 1 Segment 2 Segment 4 100% Country 1 is the only a1% a2% a3% a4% geographic segment in which Company 1 has been c1% c2% c3% c4% e1% e2% e3% e4% operating for the last four b1% b2% b3% b4% years d1% d2% d3% d4% E 2008 2009 2010 2011 2011 Business Highlights PL Description AM News • Has 3 major strategic business units, namely, Business Unit 1, Business Unit 2 and Overview S Business Unit 3 • Markets its products in over 60 countries • Has 50 C&F agents, more than 5000 distributors and over 2.8 mn retail outlets in Country 1 • Its nutrition product range includes products such as Product 1, Product 2 and Product 3 Nutraceutical Business • Is setting up a manufacturing plant in Country 2 to manufacture Product 3Source: Company Website; Netscribes Analysis; Databases NUTRACEUTICALS MARKET IN INDIA 2012.PPT 10
  11. 11. Thank you for the attentionThe Nutraceuticals Market – India report is part of Research on India’s Healthcare IndustrySeries.For more detailed information or customized research requirements please contact:Tamojit RoyPhone: +91 33 4064 6215E-Mail: tamojit.roy@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a truevalue proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growthobjectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. NUTRACEUTICALS MARKET IN INDIA 2012.PPT 11