3. The government was infusing
capital in the past, but given its
commitment to rein in
expenditure, the ‘Centre’ has
been more tight-fisted recently
In 2014,Govt said, only those banks
that were more efficient would be
rewarded with additional capital. Only
9 Banks made the cut
4. In FY15, a rise in bad
loans hit ‘Bank’s
Profitability’
5.
6. Most Banks now have Tier 1 Capital that is
‘just above the RBI’s 8% comfort level’
8. Sadanand Maiya owned Maiya Beverages is all set to e-tail
Maiya’s Beverages & Foods have launched a national e-
commerce website on June 6 2015 & a micro-portal for
overseas customers(to be launched soon) for selling its ready-
to-eat Dosa & Idli Mixes online
Around 270 Food Products will be offered on the website
Maiya’s also plans to
launch a separate
micro-portal which
offers products to
merchants@discounted
prices
There are 246 million
internet users in India
spending 36 minutes a
day surfing on an
average .So for Maiya’s
this looks a good
opportunity
9. Maiya’s
revenues for
2014-15 was
Rs.93 Crores
Maiya’s
projected
revenue for
2015-16 is
Rs.250 Crores
Maiya’s deliver partner
(a)Delhivery.com
(for handling domestic
logistics)
(b)End2End-Cargo firm
for Global deliveries
Size of Indian Market;
Branded Masala-
Rs.6200 Cr
Snacks Market-
Rs.4000 Cr
Maiya’s Beverages-A Brief Profile
Backed by Private Equity Firm(Ascent Capital)
PayU (Payment Gateway)will handle
cross-country payments
11. On June 19,2015,Kishore Biyani
(Future Group CEO) unveiled his
vision for his Rs.18000
Crores Enterprise
oBiyani plans to transform his retail-led enterprise into a
‘Consumer Goods Giant’
oThe above strategy Biyani intends to pull-off by mapping
consumer trends with the help of the following;
-Data Science
-Analytics
-make launching affordable
-Value-added products
-Products @ an aggressive pace across food & non-food
categories
-To expand reach by using a combination of Online & Offline
methods
oBiyani intends to touch a turnover of
Rs.1 Lakh Crore by 2021(i.e 6 fold
growth in sx years)
12. Kishore Biyani’s Portfolio
Biyani regarded as
India’s Sam Walton
revolutionized retailing
in India attempting a
number of things
&eventually exiting few
of them
Biyani’s Insurance &
Financial Services
venture Future
Capital has been
exited a few years
back
From Rs.8,000
Crores three years
ago, Future Group’s
Debt has come down
to Rs.5,870 Crores
now
Biyani’s favorite
Cash Cow business-
Pantaloons was sold
to ‘Aditya Birla
Group’ &
restructured his
business to bring
down Debt
13. Target
Rs.1 Lakh Crores
Time Frame
By 2021
Target
Rs.1 Lakh Crores
Tine Frame
By 2030
Future Group V/S ITC Limited
Future Group
Strategy
Became a Rs.20,000 Crore FMCG
Giant by 2021
Open small stores
Use shopping data for better value &
consumer insights
Become a multi-channels retailer
ITC Limited
Strategy
Look at getting into new spaces in
packaged foods, beverages & personal care
Keep the launches going, extend products
into associated categories wherever possible
Consider acquisitions that can bulk-up
portfolio
Expand distribution reach every year &
garner larger share in existing outlets
14. ITC V/S Future
Group
Comparison
ITC has taken 10 Years to reach
where Future Group will reach in 5
Years. In many respects Future Group
is ahead of ITC with its own chain of
stores & a front-end that it can
leverage to display its products
The biggest challenge for Future Group is its
absence in general Trade which constitute 90-
92 % of FMCG sales in India. Experts argue
that the move from being a retailer to a
consumer goods giant is easier said than done
since the fight for shelf-space is intense in
General Trade
Experts say that at 18.5 Million sq.ft, Biyani’s
Future Group is still among the largest retailers
in the country but this is not likely to be enough
to drive Biyani’s FMCG ambitions. Competing
with ITC is not easy
ITC has been consistently
investing in R&D, branding,
people, systems & so on. It takes a
lot of resources & game plan to do
what ITC is doing.ITC has also
made huge inroads into Food &
Non-food FMCG products. It is as
big as Parle in biscuits & in
personal care even HUL
ITC ‘s turnover from Personal Care & Foods is roughly
Rs.1000 Crores & Rs.6400 Crores. Food is an area that
ITC has taken over a decade to build having marked its
presence across a range of segments including Biscuits
(Sunfeast),Noodles(Yippee),Chips(Bingo),flour
(Aashirvaad)
15. Biyani also wants to foray into the segment what
ITC is into. When it comes to reach & distribution
levels, ITC could give Future Group a tough fight
with its overall reach in 5 Million outlets .Recent
additions to ITC’ portfolio are juices (B
Natural)where Biyani has a head start through
‘Sunkist’ & a proposed entry into dairy which is also
on the Biyani’s radar.ITC is expected to give its
rivals a tough fight in these areas
In Personal Care Biyani is slowly but
steadily building a base
Future Group just launched a body
wash for Rs.59 which is cheaper than a
Bar of Soap.
Future Group are looking at
Shampoos.
Future Group also acquired Grasim’s
personal hygiene brands
(Biyani states that he is not taking his
eye-off the non-food category despite the
bulk of the launches being in food)
Experts say that Biyani can race ahead of ITC in the non-food arena provided its Pricing & Marketing is
right.ITC has been stuck with a market share of ;
-2-3 % in Shampoos
-4% in Soaps
-9-10% in Deodorants with ‘Engage’ Brand
Biyani has no plans to go ballistic on Deodorants which is an over-crowded category though personal hygiene
with Grasim’s recently acquired brands-Kara, Puretta, Handys & prim is something he will aggressively push in
the coming years
