1. Submitted To :- Gautam Buddha University
Submitted By:-
Mayank Dubey -20/PMB/024
2. Question:- What is Industry ?
Answer - An industry is a group of companies that are related based on their
primary business activities. For example- Cement Industry,FMCG Industry,Agriculture
industries etc.
Question:- What is Analysis ?
Answer - Analysis is the process of breaking a complex topic or substance into smaller
parts in order to gain a better understanding of it.
Industry
Analysis
Industry analysis is a market assessment tool used by
businesses and analysts to understand the competitive
dynamics of an industry.
It helps them get a sense of what is happening in an industry.
Industry analysis, for an entrepreneur or a company, is a
method that helps to understand a company’s position relative
to other participants in the industry.
It helps them to identify both the opportunities and threats
coming their way and gives them a strong idea of the present
and future scenario of the industry.
3. • Robust Demand
• Presence of well
known Brands
• Long-term
potential
• Increasing
Investments
• Untapped market
• Population and
income growth
• Export Potential
• New Entrants
• Industry
Competition
• Economic crisis
• Tax and regulatory
Structure
• Environment &
Sustainability
• Lack of Finance
• Competitive
Rivalry
GENERAL SWOT
PARAMETERS
4. FAST MOVING CONSUMERGOODS (FMCG)
• FMCG is the fourth-largest sector in the Indian economy.
• India’s household and personal care is the leading
segment, accounting for 50% of the overall market.
Healthcare (31 %) and food and beverages (F&B) (19%)
comes next in terms of market share.
• Growing awareness, easier access and changing
lifestyles have been the key growth drivers for the sector.
• The number of internet users in India is likely to reach 1
billion by 2025.
7. Investments/ Developments
Some of the recent developments in the FMCG sector are as follows:
•In July 2021, Emami Ltd. increased its stake (by 15% to 46%) in Helios Lifestyle, which sells male-grooming products under The Man Company brand in line with its
ambition to tap emerging online opportunities.
•In July 2021, HUL launched in-store vending machine model, Smart Fill machine, for its home care products with the aim to reuse and recycle plastic. Smart Fill
machine will allow consumers to reuse plastic bottles by refilling products from its brands like Surf Excel, Comfort and Vim.
•As of June 2021, e-commerce share has already touched 7-8% for some of the largest FMCG companies in the country, according to Accenture India.
•In June 2021, Dabur India announced its Rs. 550 crore (US$ 75.6 million) investment to set up a new plant in Madhya Pradesh for manufacturing of food products,
ayurvedic medicines and health supplements.
•In May 2021, Tata Digital Ltd., a 100% subsidiary of Tata Sons, acquired a 64.3% stake in supermarket grocery supplies, the business-to-business arm of BigBasket
in tandem with Tata Group’s strategy to build a digital consumer ecosystem. According to the Economic Times, the deal is worth U$ 1.8-2 billion.
•In March 2021, ITC Ltd. launched milkshakes and cakes to expand in categories such as chocolates and staples.
•In February 2021, Nestle India announced plans to reach ~1.2 lakh villages (with each having population of over 5,000) over the next 2-3 years.
•In February 2021, Food and snack company, Haldiram's partnered with Africa's Futurelife to bring its nutritional food product range to India. The two companies
launched a range of four products—Smart Foods, Smart Oats and Ancient Grains, Crunchy Granola and High Protein.
•In January 2021, Tata Consumer Products announced that it is looking for ways to add more of its beverages’ portfolio onto a direct-to-consumer platform to
capture the urban online market.
•In January 2021, Tata Consumer Products introduced two new products, TATA Tea Tulsi Green and TATA Tea Gold Care, and reformulated its existing Tetley Green
Tea, with added Vitamin C.
•In January 2021, FMCG businesses in India are planning to expand their oral care portfolio by entering new and niche categories such as mouth sprays, ayurvedic
mouth cleansers and mouthwashes to meet the rising consumer demand for hygiene products.
• For example, Pulling oil, an ayurvedic concoction used as a morning oral cleansing ritual based on centuries-old Ayurvedic regimen, was launched by
companies such as Colgate Palmolive (India) Ltd. and Dabur India.
13. Agriculture and Allied Industries Analysis
Some Key highlights of agriculture industries:-
In India, agriculture is the primary source of livelihood for 54.6% of the population.
India has the second-largest arable land resources With 20 Agri-climatic regions.
The country also possesses 46 of the 60 soil types in the world.
As per 2018, agriculture employed more than 50% of the Indian work force and contributed 17–18% to country's
GDP.
Share of agriculture and allied sectors in GDP of India at current prices is 17.8 % in FY20.
The Indian food processing industry contributes 32% of the country’s total food market, ranked fifth in terms of
production, consumption, export and expected growth.
Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales.
India is among the 15 leading exporters of agricultural products in the world.
Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 35.09 billion in FY20.
Provide food to 1 billion people.
Produce 51 major crops.
Provide raw material to Argo based companies.
India is currently the world’s fourth-largest producer of agrochemicals.
India had the largest livestock population of around 535.8 million, which is 31% of the world’s livestock population
in 2019.
14. Market Size
10.92% 10.05% 10.50%
9.33% 10.20%
0.00%
5.00%
10.00%
15.00%
FY-16 FY-17 FY-18 FY-19 FY-20
GDP Contribution by Agriculture and Allied
Industries
Amt. in US$ Billion
F.Year Total GDP GDP Contribution
2016-017 2294.12 250.62
2017-018 2651.47 266.48
2018-019 2701.11 283.68
2019-020 2870.50 267.90
2020-021 2708.77 276.37
FDI
Agricultural Production
15. SWOT Analysis Of Agricultural Industry
Strength
Rich Biodiversity-46000 Plants Species and 86000
Species of animal recorded.
Arable land-428 millions acre cultivable land.
Suitable climate.
Strong and well dispersed research and extension
system.
Availability of labor force.
Weakness
Lack of Rural development strategy.
Water resource problem.
Youth Migration.
Weak rural transportation infrastructure.
Limited Access to finance.
Opportunity
Different Policy Support by Govt.
Farm management service.
Improving supply chain infrastructure and
contract farming.
Potential Global Outsourcing hub.
Population and income growth.
Threat
Climate Change
Economic crisis
Conflicts and politics.
Poor road condition.
Ageing farmer population.
16. Demand of Indian Agricultural Products
32.08 33.87
38.21 38.54
35.09
41.25
0
5
10
15
20
25
30
35
40
45
FY-16 FY-17 FY-18 FY-19 FY-20 FY-21
AGRICULTURAL EXPORT FROM INDIA
(US$ BILLION) India Exports - Historical Data
Amt.are taken in US$ Billion
Year Total Export
% of GDP
of total
export
Export of
Agri.Products
% of GDP
of total
export
2016 439.64 19.16 32.08 7.29
2017 498.26 18.79 33.87 6.79
2018 538.64 19.94 38.21 7.09
2019 529.02 18.43 38.54 7.28
2020 474.15 18.08 35.09 7.40
18. Food processing segments and private players
Ques:- Why should we invest in Indian agro-based industries ?
Answer:-
1. CHANGING CONSUMER TASTES 6. PRODUCT INNOVATION AS THE KEY TO EXPANSION
2. EXPANSION OF INTERNATIONAL COMPANIES 7. STRENGTHENING PROCUREMENT VIA DIRECT FARMER-
3. RISING DEMAND ON INDIAN PRODUCTS IN FIRM LINKAGES
INTERNATIONAL MARKET 8. HORTICULTURE OUTPUT
4. EMPHASIS ON HEALTHIER INGREDIENTS
5. HIGHER CONSUMPTION OF HORTICULTURE CROPS
19. Some Govt.policies which helps in Agriculture industries
1. Agriculture Export Policy, 2018 2. Pradhan Mantri Formalisation of Micro Food Processing
Enterprises (PM FME)
3. Model Contract Farming & Services Act 2018 4. PLI Scheme
5. Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) 6. Pradhan Mantri Fasal Bima Yojana 7. FPO Scheme
Future Forecast in Agriculture industry
The new Agriculture Export Policy aims to increase India’s agricultural export to US$ 60 billion by 2022.
The Indian food processing industry is expected to reach US$ 535 billion by 2025-26 on the back of
government initiatives such as planned infrastructure worth US$ 1 trillion and Pradhan Mantri Kisan
Sampada Yojna.
India’s food and beverage packaging industry is expected to reach US$ 122.78 billion by 2025.
Agricultural credit target is set at Rs.16.5 lakh crore (US$ 226 billion) in FY22.
The Government of India targets production of 32 million tonnes of pulses by 2030.
In the next five years, the central government will aim US$ 9 billion in investments in the fisheries sector
under PM Matsya Sampada Yojana. The government is targeting to raise fish production to 220 lakh
tonnes by 2024-25.
From 2017 to 2020, India received ~US$ 1 billion in agritech funding. With significant interest from the
investors, India ranks third in terms of agritech funding and number of agritech start-ups. By 2025,
Indian agritech companies are likely to witness investments worth US$ 30-35 billion.
22. Market Report
Top
Cement
Producers
in
India
(Market
Share
in
2020)
• 8% of the global installed capacity.
• It is supported by high level of Activity.
• In the third quarter of FY21, reported a healthy
growth
• likely to add an ~8 MTPA capacity in cement
production.
• Expected to increase by 10-12% and utilization is
expected around 65% in FY22.
• Increase in demand for cement in Tier 2 & 3 cities.
23.
24.
25. Industry in Indian Market
S
W T
O
STRENGTHS
• Robust demand
• Attractive opportunities
• Long-term potential
• Increasing investments
WEAKNESS
• Cement Industry is highly Fragmented
• Increasing cost of production
• Demand and Supply Gap
OPPORTUNITIES
• Housing and Real Estate
• Public Infrastructure
• Industrial Development
THREATS
• New Entrants
• Buying power of customers
• Supplier Power
• Substitutes
• Industry Competition
26. SomeTop NIFTY Cement sector companies listed on the NSE
Company Name Last Price % Chg.
52 wk 52 wk Market Cap Net Sales Net Profit
High Low (Rs. cr) (Rs. cr) (Rs. cr)
UltraTechCement 7,354.60 -0.11 8,073.30 4,114.10 212,297.70 43,188.34 5,342.00
Shree Cements 28,059.35 -0.18 32,048.00 20,097.95 101,240.23 12,588.39 2,311.93
Ambuja Cements 402.9 2.03 442.50 225.00 80,001.65 11,371.86 1,790.10
ACC 2,265.85 2.84 2,509.00 1,432.15 42,549.78 13,784.54 1,414.94
Dalmia Bharat 2,093.00 -0.51 2,548.40 740.00 39,163.70 148.00 25.00
J. K. Cement 3,412.00 1.88 3,699.90 1,535.05 26,363.93 6,328.28 602.83
Ramco Cements 1,014.55 1.43 1,132.70 746.65 23,942.64 5,268.44 761.08
JK Lakshmi Cem 650.6 1.28 816.00 260.00 7,655.61 4,384.71 363.82
India Cements 196.05 1.37 211.40 114.40 6,075.53 4,436.67 222.04
Heidelberg Cem 252.3 -0.16 284.95 181.20 5,717.45 2,116.67 314.95
Star Cement 107.35 -0.32 120.00 75.35 4,427.43 1,664.00 157.27
HIL 4,931.90 0.91 6,758.05 1,611.00 3,695.25 1,565.89 187.75
Sagar Cement 305.3 -0.81 317.00 105.66 3,587.28 1,001.70 161.96
Orient Cement 154.95 0.62 173.50 56.85 3,174.44 2,324.09 214.19
Ramcoind 305.2 1.65 366.65 177.20 2,644.96 1,002.93 110.78
28. Investment Scenario’
of major players
• In April 2021, the company announced plans to reach 50
million tonnes per annum capacity from its existing
capacity of 29.65 million
tonnes.
Ambuja Cement
• In April 2021, ACC announced the expansion
plan of its grinding unit in Tikaria (which has a
1.6 MTPA cement capacity).
• On February 6, 2021, ACC announced the
groundbreaking ceremony of its greenfield
project of 2.7 MTPA integrated cement plant
with 1 MTPA cement grinding unit at Ametha in
Kymore, Madhya Pradesh.
• In January 2021, the company commissioned
its new grinding unit at Sindri, in Dhanbad
District of Jharkhand, adding an additional
capacity of 1.4 million tonnes per annum to the
existing 3 MTPA unit.
ACC
• In March 2021, UltraTech Cement acquired 3B Binani
Glassfibre Sarl Luxembourg, a subsidiary of Binani
Industries.
• In December 2020, the company plans to invest Rs.
5,477 crore (US$ 776.99 million) to raise the capacity
by 12.8 mtpa. The
expansion includes existing approval for the cement plant
at Pali in Rajasthan, in addition to capacity expansion of
6.7 mtpa
currently underway in Uttar Pradesh, Odisha, Bihar and
West Bengal.
UltraTech Cement