For the complete report, get in touch with us at : info@netscribes.com The confectionery market in India is expected to witness a steady demand growth in spite of the ‘indulgence product’ tag, according to, knowledge consulting solutions company, Netscribes Inc. The report identifies trends in the confectionery industry such as the growing gifting culture and the use of confectionery products as a replacement of traditional sweets. Moreover, the rural market is also a major contributor to the industry due to its massive demand and consumption in terms of volume. This is further aided by the penetration and availability of confectioneries at different price points along with the increased disposable income amongst consumers. All these factors indicate a bright future of the confectionery market in India, according to the report. Netscribes launches a report on the Confectionery Market in India 2012 as part of Netscribes’ Food and Beverage Industry report series. The introduction of the report segregates the overall FMCG market into its sub segments, which includes food and beverage, under which the sub segment, the confectionery market, is highlighted. This is followed by the overview section that provides an overview of the confectionery market in India, its key characteristics, market size and growth rates as well as market potential. A segmental share of the market in terms of organized and unorganized sector is also provided along with zone wise and age wise segmentations. In addition to this, price wise and variant wise segmentation of the lower price bracket confectioneries has also been provided. The next section elaborates on the value chain analysis of the sector, followed by general distribution system of the confectionery products along with the profit margins at each step. The report then goes on to highlight the various aspects of the confectionery market by segregating it on the basis of product types i.e. sugar confectionery, chocolate confectionery and chewing gums. It contains a brief overview about each category along with their respective market sizes. Information on the chocolate companies, the boiled sugar candy market and other aspects of the market in terms of products are provided in the exclusive report. Following the segmentation in terms of product types, the Netscribes’ report shows a segmentation of the market into rural market and urban markets. A brief overview regarding each segment along with flavour preferences and advertising techniques have also been included. This is followed by a zone wise consumer preference section, which includes flavour and price preferences of consumers inhabiting the four regions of the country – East, West, North and South. A separate section on import and export of different types of confectionery products has also been provided, highlighting the growth in import-export values ov

1. Insert Cover Image using Slide Master View
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Confectionery Market – India
November 2012

2. Executive Summary
 The Indian confectionery market is pegged at INR x bn for the year 20__ and is expected to grow
Market
at a CAGR of y% 20__ onwards
Drivers Challenges
—Growing Gifting Culture —Rise in Ingredient Price
—Low Per Capita Consumption of Confectionery —Rise in Packaging Costs
Drivers & —Rapid Urbanization —Regulatory Challenges
Challenges —Growing Retail Market —Fake Confectioneries.
—Growing Income and Consumption
—Developing Rural Sector
—Marketing Campaigns
 Events
 Functional Confectioneries
 Packing Variations
Trends  New Launches
 Innovation in Products
 Creative Advertising
 Corporate Activities.
Major Players
Competition Company A Company B. Company C
Company D Company E Company F
CONFECTIONERY MARKET IN INDIA 2012.PPT 2

3. LE
•Introduction
MP
•Market Overview
•Market Segmentation – Product Wise
S A
•Market Segmentation – Rural & Urban
•Consumer Preference
•Import‐Export
•Drivers & Challenges
•Government Rules & Policies
•Trends
•Competition
•Strategic Recommendations
•Appendix
CONFECTIONERY MARKET IN INDIA 2012.PPT 3

4. Food and beverage ‐ the broad category within the FMCG sector,
is further segmented into multiple categories
LE Market Segmentation
MP FMCG
S A
Personal Care Health Care Home Care Food & Beverage
Fruits and Meat, Fish Packaged
Dairy Staples Beverages
Vegetables and Poultry Foods
Soup, Pasta,
Confectionery Ice Cream Baked Products Ready to Eat Others
Noodles
• The Food and Beverage sector is further segmented into multiple categories and confectioneries come
under the category of packaged foods
• Among the other sub categories under packaged foods, confectionery, soup, noodles, ice cream and ready
to eat segments account for the fastest growing sub categories
CONFECTIONERY MARKET IN INDIA 2012.PPT 4

5. The Indian confectionery market is highly competitive in
nature and will witness…
Indian Market – Overview (1/4)
• In general term, confectionery refers to any food item which has high sugar content
• Sweet tasting food products enjoy huge popularity among the Indian consumers, which is also
responsible for making confectionery products one of the fastest growing sectors under the packaged
food segment
• It is chiefly a mono pack market in comparison to the global market which is highly dominated by multi
packs
• Moreover, here sales and distribution of majority of the low price products are heavily dependent on the
unorganized retail which includes small retails shops, paan‐bidi shops and kirana outlets, in addiiton to
the organized retails for the sale of premium products
E
• The market size of Indian confectionery market has been estimated to be around INR x bn for the year
20__
L
MP Confectionery – Market Size & Growth
SA
INR bn
200,000 Y2%
Y1% x8 x9
150,000 x6 x7
x4 x5
100,000 x2 x3
x1
50,000
0
20__ 20__ 20__ 20__ 20__ 20__ 20__ 20__ 20__
CONFECTIONERY MARKET IN INDIA 2012.PPT 5

6. …robust growth in the coming years
Indian Market – Overview (2/4)
• The market is highly competitive in nature and is
segmented into organized and unorganized sector,
wherein organized sector accounts for y3% of the overall
LE Zone wise segmentation of the
confectionery market, wherein southern
P
part accounts for the biggest share
market
M
 The organized market is mostly dominated by the multinational
companies, but several domestic players are also present and
A
are strengthening their position in the market
S
• Moreover, to overcome the huge competition existing in
the market, the players are trying to lure the consumers
by attractive pricing, customization of products in
A3%
A4%
A1%
South
West
North
accordance with Indian taste preferences, brand building
A2% East
activities such as advertising, contests etc among others
The market is highly
dominated by the
unorganized sector • The Indian market is witnessing surging demand of
B1% confectionery products due to growing income,
changing mindset and rising consumption by the adult
segment as well as more and more foreign players are
Organized B2%
investing to build up business over here
Unorganized
CONFECTIONERY MARKET IN INDIA 2012.PPT 6

7. The confectionery industry can also be classified in terms of
the different product categories
Product Segmentation (1/4)
Three broad categories of the confectionery market
LE
P
Sugar Confectionery Chocolate Confectionery Chewing Gum
S AM C4%
In the overall confectionery market,
C3% Sugar confectionery
sugar confectionery accounts for the
major share of around c1%, followed C1% Chocolate confectionery
by chocolate confectionery (c2%) and Chewing gum
chewing gum (c3%) Others
C2%
Note: Others include breath fresheners, jellies, mints etc.
CONFECTIONERY MARKET IN INDIA 2012.PPT 7

8. The Indian Confectionery Market can be further segmented
into rural market and urban market
Segmentation – Rural and Urban (1/3)
LE
Indian Confectionery Market
MP
S A Rural Market Urban Market
• But, there exists some differences
The demand from the rural market is between the rural and the urban
at par with the urban market, consumers in terms of tastes and
wherein rural market accounts for preferences
around d1% of the overall D1%
D2%
confectionery consumption • Moreover different companies also
apply different types of promotional
strategies to attract the consumers
from the respective segments
Rural Consumption
Urban Consumption
CONFECTIONERY MARKET IN INDIA 2012.PPT 8

9. Confectionery Market ‐ India
Confectionery Flavour Preference
• xx • xx
P LE
S AM
• xx
• xx
CONFECTIONERY MARKET IN INDIA 2012.PPT 9

10. Import of different types of confectionery products (1/4)
Chewing Gum Major Importing Nations (2011)
Volume Value A
INR mn ‘000 units B
a1 P6%
100 1,500 P5% C
80 P3% P4% D
a2 1,000 P1%
60 a3 a4 E
b1
LE
40 F
b2 500 P2%
20 b3
b4
0
20__
MP
Sugar Confectionery
20__ 20__ 20__
0
Major Importing Nations (2011)
1,000
INR mn
S A Volume Value
d4
‘000 units
8,000 A1%
P
Q
R
800 d3 A6% T
6,000
d2 AUSTRALIA
600
d1 c4 4,000
400 A2% UOTHERS
c3 A5%
200 c2 2,000
c1 A4% A3%
0 0
20__ 20__ 20__ 20__
Note: HS Code 170410 (Chewing gum, whether or not sugar coated ), HS Code 170490 (Sugar confectionery including chocolates, no cocoa, nesoi)
CONFECTIONERY MARKET IN INDIA 2012.PPT 10

11. Drivers & Challenges – Summary
Drivers
Growing Gifting Culture
Challenges
Low Per Capita Consumption Of
Confectionery
LE
Rise in Ingredient Price
P
Rapid Urbanization
Rise in Packaging Costs
Growing Retail Market
Growing Income and Consumption
S AM Regulatory Challenges
Fake Confectioneries
Developing Rural Sector
Marketing Campaigns
CONFECTIONERY MARKET IN INDIA 2012.PPT 11

12. Trends – Summary
Events
LE
MP Functional Confectioneries
S A Packing Variations
Key Trends
` New Launches
Innovation in Products
Creative Advertising
Corporate Activities
CONFECTIONERY MARKET IN INDIA 2012.PPT 12

13. Public: Foreign Company – Company A (1/4)
Company Information
L
Company A, Street A
E Offices and Centres – India
MP
Corporate Address City B
State C
A
Tel No. 91 124 7239
S
City B
Fax No. 91 124 4734111
Website www.company.co.in
Year of Incorporation 1767
Ticker Symbol 123456
Stock Exchange ABC Head Office
Products and Services
Category Products/Services
Eclairs, Polo, Milky Bar, Milk Key People
Confectionery Chocolate,Munch, Barone,
Kitkat,Selections, Dark Chocolate Name Designation
Nescafé classic, cappuccino, sunrise Person A MD, CEO
Beverages
premium, sunrise and nestea iced tea
Person B. Director
Prepared Dishes & Maggi noodles, pazzta, atta noodles,
Cooking Aids coconut milk powder, sauces Person C Director
Milk Products & Cerelac, NAN, lactogen, acti‐plus, Person D Director
Nutrition neslac, junior daheez, milkmaid
CONFECTIONERY MARKET IN INDIA 2012.PPT 13

14. Public: Domestic Company – Company A (2/4)
Financial Snapshot
Total Income
LE Key Ratios
Particulars
y‐o‐y change
(2011‐10)
2011 2010 2009 2008
P
Net Profit / Loss
INR bn INR bn Profitability Ratios
x4 Operating Margin
M
300 x3 40
x2 Net Margin
A
200 x1 Profit Before Tax Margin
y4 20
S
y3 Return on Equity
100 y1 y2
Return on Capital Employed
0 0 Return on Working Capital
20__ 20__ 20__ 20__ Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company earned a net profit of INR x4 bn in FY 20__, as Operating costs (% of Sales)
compared to net profit of INR x3 bn in FY 20__ Administration costs (% of
• The company reported total income of INR y4 bn in FY 20__, Sales)
registering an increase of z per cent over FY 20__ Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of a1 per cent in FY 20__,
Current Ratio
a decrease of z1 percentage points over FY 20__
Cash Ratio
• The company reported debt to equity ratio of a2 in FY 2011, a Leverage Ratios
decrease of z2 per cent over FY 20__ Debt to Equity Ratio
Debt to Capital Ratio
Key Financial Performance Indicators
Interest Coverage Ratio
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR mn) u Fixed Asset Turnover
Asset Turnover
Total Enterprise Value (INR mn) v
Current Asset Turnover
EPS (INR) w Working Capital Turnover
PE Ratio (Absolute) x Capital Employed Turnover
Improved Decline
CONFECTIONERY MARKET IN INDIA 2012.PPT 14

15. Public: Foreign Company – Company A (3/4)
Key Business Segments
A
LE Key Geographic Segments
B
P
100% 100%
80% 80%
60%
40%
20%
S AM
100%
Food is the key business
segment on which the
company has been focusing
for the last four years
60%
40%
20%
100% India is the only geographic
segment in which the
company has been operating
for the last four years
0% 0%
2011 2011
Business Highlights
Description News
• Company A operates as a subsidiary of A Ltd.
Overview • The company deals with food business which comprises of milk and nutrition products,
beverages, prepared dishes, chocolate and confectionaries
• It has 7 manufacturing facilities located in Moga (Punjab), Choladi (Tamil Nadu),
Manufacturing facilities Nanjangud (Karnataka), Samalkha (Haryana), Ponda and Bicholim (Goa) and Pantnagar
(Uttarakhand)
CONFECTIONERY MARKET IN INDIA 2012.PPT 15

16. Public: Foreign Company – Nestle India Ltd. (4/4)
Description News
• In 2012, the company will add another factory at Tahliwal (Himachal Pradesh)
• The company is going for extension of its existing plant at Ponda in Goa to enhance
productivity of popular brands which include Kitkat and Munch
Investment
LE
• For this, a part of the INR 7 bn fund that has been invested by the company in the state
for the past three years will be used
MP
S A
CONFECTIONERY MARKET IN INDIA 2012.PPT 16

17. Appendix
Ratio Calculations Ratio Calculations
(Operating Current Assets / Current
Operating Margin Current Ratio
Income/Revenues)*100 Liabilities
Net Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance +
Cash Ratio Marketable Securities) / Current
(Income Before Tax / Revenues Liabilities)}
Profit Before Tax Margin
*100
Total Liabilities / Shareholders
Debt to Equity
(Net Income / Shareholders Equity
Return on Equity (ROE)
Equity)*100
{Total Debt / (Shareholders
Debt to Capital Ratio
EBIT / (Total Assets – Current Equity + Total Debt)}
Return on Capital (ROCE)
Liabilities)*100
Interest Coverage Ratio EBIT / Interest Expense
(Net Income / Working Capital)
Return on Working Capital
*100
Fixed Asset Turnover Sales / Fixed Assets
Return on Assets (Net Income / Total Assets)*100
Asset Turnover Sales / Total Assets
Return on Fixed Assets (Net Income / Fixed Assets) *100
(Operating Expenses / Sales) Current Asset Turnover Sales / Current Assets
Operating Costs (% of Sales)
*100
Administration Costs (% of (Administrative Expenses / Sales) Working Capital Turnover Sales / Working Capital
Sales) *100
Capital Employed Turnover Sales / Shareholders Equity
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
CONFECTIONERY MARKET IN INDIA 2012.PPT 17

18. Sources of Information
Secondary Research Primary Research
Print Medium Interviews
Leading Newspapers Leading Industry Vendors
Journals / Magazines Industry Stakeholders
Business Magazines Industry Experts
Electronic Medium Surveys Conducted in Social / Technology Focused
Forums
Company Websites
Government Websites / Resources
Online Magazines
Online Journals / Articles
Premium Databases
Social Networking Space
CONFECTIONERY MARKET IN INDIA 2012.PPT 18

19. Thank you for the attention
The Confectionery Market – India report is part of Netscribes’ Food and Beverage Series.
For the complete market research report, contact us at:
Phone: +91 33 4027 6214/15
E‐Mail: info@netscribes.com
Follow us on:
About Netscribes, Inc.
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core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one‐stop shop designed to fulfil clients’
profitability and growth objectives.
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is
not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior
permission is required for guidelines on reproduction.
CONFECTIONERY MARKET IN INDIA 2012.PPT 19