The document discusses India's food industry. It provides details on the nature and size of the industry in India. India is the world's second largest producer of food after China. The total food production in India is expected to double in the next ten years. Health food and supplements is a rapidly growing segment. Major reasons for the growth of the food industry in India include increased urbanization, higher incomes, improved standards of living, and increased availability of supermarkets and malls. The top three food companies are Nestle, Britannia, and Kwality while the bottom three are Coffee Day, Hindustan Foods, and KGN Enterprises. The document also discusses various strategies adopted by food companies, management personnel of

3. FOOD INDUSTRIES

4. What is food industry?
• The Food Industry is a complex, global
collective of diverse businesses that supply
most of the food consumed by the world
population. Only subsistence farmers, those
who survive on what they grow, and hunter-
gatherers can be considered outside of the
scope of the modern food industry.

5. NATURE OF INDUSTRIES
• India is the world's second largest producer of
food next to China.
• The total food production in India is likely to
double in the next ten years.
• Health food and health food supplements is
another rapidly rising segment of this industry

6. Reasons for the growth of the
food industry
• Increased urbanization in the country has given a boost to
the food industry in India.
• Majority of the women in the country are working as a
result of which families have extra income which they are
spending in buying food.
• The standard of living in the country has improved as a
result of which there has been an increased demand for
food.
• Supermarkets and malls have opened all over the country
and this has helped in making shopping for food a
pleasurable experience.
• The consumers can select, inspect and pick up food items
that they like in an ambience that is comfortable. This too
has helped to boost the sale of food products

7. COMPETITORS IN INDUSTRY
TOP 3 INDUSTRIES:
NESTLE
BRITANNIA
KWALITY
BOTTOM 3 INDUSTRIES:
 COFFEE DAY
 HINDUSTAN FOODS
 KGN ENTERPRISES

8. Most sold products
• Nestle
• Britannia
• Kwality

9. Bottom
• Coffee day
• Hindustan foods
• Kgn enterprises

10. MARKET SHARE VALUE FOR TOP
COMPANIES
nestle Britannia kwality
last price 6325 3236 147.5
change -71.35 -0.1 0.7
net sales(cr) 8175.31 7947.9 5724.23
6325
3236
147.5
-71.35 -0.1
0.7
8175.31
7947.9
5724.23
-1000
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
last price change
net sales(cr)

11. MARKET SHARE VALUE FOR BOTTOM 3
Coffee day hindustan foods kgn
last price 232.25 160 5
change 0.75 -2 0.08
net sale(cr0 48.72 23.85 0.91
232.25
160
50.75
-2
0.08
48.72
23.85
0.91
-50
0
50
100
150
200
250
last price change net sale(cr0

12. Total Indian share in GDP

13. STRATEGIES ADOPTED BY
FOOD INDUSTRIES
• Strategies Adopted Companies for Making Their Brands
Outstanding
• Some of the major strategies adopted for making their
brands outstanding compared to competitions are as follows:
(i) Multi-brand Strategy (ii) Product Flanking (iii) Brand
Extensions (iv) Building Product Lines (v) New Product
Development (vi) Product Life Cycle Strategy (vii) Taking
advantages of wide distribution network.
• The success of an FMCG depends greatly on its marketing
strategy. An FMCG marketer pursues a wide combination of
strategies.For instance, when prices are competitive, the
company would use an extensive distribution network,
design suitable advertising and sales promotion schemes
from time to time.
• Following are some strategies adopted by FMCG companies
for making their brands outstanding compared to
competitors:

14. TYPES OF STRATEGIES
• (i) Multi-brand Strategy:
• A company often nurtures a number of brands
in the same category. There are various
motives for doing this. The main rationale
behind this strategy is to capture as much of
the market share as possible by trying to cover
as many segments as possible, as it is not
possible for one brand to cater to the entire
market.

15. (ii) Product Flanking:
Product flanking refers to the introduction of different combinations
of products at different prices, to cover as many market segments as
possible. It is basically offering the same product in different sizes and
price combinations to tap diverse market opportunities

16. (iii) Brand Extensions:
Hindustan Lever’s Lifebuoy soap’s brand extensions are Lifebuoy Plus,
Lifebuoy liquid and Lifebuoy Gold, since these brands have been
positioned at different segments. Similarly, Amul butter, Amul ghee, Amul
cheese and Amul chocolates are various brand extensions of regular Amul
Brand. Companies make brand extensions in the hope that the extensions
will be able to ride on the equity of the successful brands.

17. (iv) Building Product Lines:
Nestle has added product lines one after another starting from
maggi,nescafe, curd, kitkat etc. Similarly, Britannia Industries have related
biscuits as differed product lines. Companies add related new product lines
to give consumers at the products they would like to buy.
(v) New Product Development:
Proctor and Gamble is shown as the number one
company in the world reputed for new products
development. Companies that fail to develop new
products would expose themselves to great risk and
might face stagnation in future.
The existing products are vulnerable to changing
consumer needs and tastes, new technologies,
shortened product life cycles and increased
domestic and foreign competition.

18. (vii) Taking advantages of wide distribution network:
A very simple way of increasing an FMCG company’s market share is by
developing a strong distributions network, preferably in terms of more
locations. An extensive distribution system can be developed over
time, or the company may acquire another company which has an
extensive distribution network. Coca-Cola and PepsiCo’s wide
distribution network systems have made them market leaders.

19. Indian growth rate of food
industry• Exports of processed food and related
products
• During FY11–16, India's exports of processed
food and related products (inclusive of animal
products) grew of 11.74 per cent, reaching US$
16.2 billion.
• Main export destinations for food products
have been the Middle East and Southeast Asia.
• In FY17* India’s exports stood at
US$ 1.3 billion.

21. BACKGROUND
PROMOTER GROUPS

22. NESTLE

23. BRITANIA

24. KWALITY

25. COFFEE DAY

26. HINDUSTAN FOODS

27. KGN ENTERPRISES

28. MANAGEMENT ETHOS
&
PHILOSOPHY

29. CMDs, CEOs AND KEY TOP MANAGEMENT PERSONNEL
NESTLE
Mr. Suresh Narayanan joined the Board of Directors of Nestlé India Limited as Managing
Director from 1st August, 2015. Mr. Narayanan has been designated as the Chairman and
Managing Director of the Company with effect from 29th October, 2015. He is also member
of Corporate Social Responsibility Committee of the Board of Directors of the Company. Mr.
Suresh Narayanan holds a Master’s Degree in Economics from the Delhi School of
Economics. He has a Diploma from the IMD Program for Executive Development and has
participated in the Nestlé Leadership Program of the London Business School. He has over
30 years of rich and exhaustive experience in the FMCG Industry and has held senior
management and top leadership roles in leading global companies. Mr. Narayanan was
Chairman and CEO of Nestlé Philippines prior to joining Nestlé India as Managing Director.
Mr. Suresh Narayanan Chairman and
Managing Director – Nestlé India Limited

30. • Mr. Shobinder Duggal Director - Finance &
Control and CFOMr.
• Aristides ProtonotariosDirector – Technical
• Mr. R. V. KanoriaIndependent -Non-Executive
Director
• Mr. Ashok Kumar- MahindraIndependent Non-
Executive Director
• Dr. Rakesh MohanIndependent -Non-Executive
Director
• Mr. Ravinder - NarainIndependent Non-Executive
Director
• Dr. Swati A. -PiramalIndependent Non-Executive
Director

31. BRITANNIA

34. COFFEE DAY

35. • Shri. R. Ram Mohan has been the Chief Financial Officer of Coffee
Day Enterprises Limited since January 9, 2015. Shri. Mohan has
been the Managing Director of Sical Logistics Ltd since September
26, 2011. He serves as Director-Strategy at Coffee Day Group. He
serves as the Chief Financial Officer for infrastructure related
companies. He has over 30 years of industrial experience in
Commercial, Manufacturing & Business operations segments.
R Ram Mohan
CFO, Coffee Day & Chairman, SICAL

38. HINDUSTAN FOODS

39. • Shrinivas V. Dempo was born on 2nd February, 1969 in Mumbai into
a Goan family that has had a history of five and a half centuries of
business interests and social responsibility behind it.
• Shrinivas is the chairman of Goa’s leading business house, Dempo,
whose modern-era activity was pioneered by his grandfather, the
late Vasantrao S Dempo in the year 1941, with support from his
great –uncle, the late Vaikunthrao S Dempo. The businesses were
consolidated by his father, the late Vasudeva V. Dempo.
Mr. Shrinivas V. Dempo
Chairman

41. KGN ENTERPRISES

43. COMPANY ETHOS & PHILOSOPHY

44. The Company insists on honesty, integrity and fairness in all aspects of its
business and expects the same in its relationships. This has earned it the trust
and respect of every strata of society that it comes in contact with and is
acknowledged amongst India's 'Most Respected Companies' and amongst the
'Top Wealth Creators of India'.
NESTLE
BRITANNIA
Our relentless focus on quality and freshness
We realize our responsibility to continue delivering fresh, nutritious and fun
products and it is our mission to be an arm-stretch away, any time of the day.

45. To be Recognized, by our customers, as a leader of the Dairy Foods business. To
become the benchmark by which all other competitors are measured.
To achieve our mission we are committed to maintaining and setting high quality
standards of our product.Our forte is research and innovation by which means we
will introduce novel high quality product.
Dedicated to the customers
Striving to exceed expectation of consumers, farmers and all other stakeholders.
Focused on innovation, creative thinking and dynamic salutions.
contribute to the advancement and improvement of farmers associated with us.
KWALITY
COFFEE DAY
To find and extract the boundless potential in all that we
do—just as we have for every cup of coffee.
Showing the world where coffee can take us

46. Complete wellbeing.
Growth.
Progress.
HINDUSTAN FOODS
KGN ENTERPRISES
Eco-friendliness
Reactivity
Composition
Purity

47. CSR

48. NESTLE

50. BRTANNIA

52. Iron deficiency among Indian children is a key cause of school dropouts as well
as decreased productivity. Based on the experience from the Britannia-GAIN-
Naandi partnership, your Company created a new offering for all consumers –
Tiger Banana, a delightful banana biscuit fortified with vitamins and minerals.
In keeping with its core essence of “Swasth Khao Tan Man Jagao”, your
Company constantly strives to find sustainable opportunities to drive home
the message of nutrition and good food habits among children at the right
age. Britannia is committed to help secure every child’s right to growth and
development through good food everyday. Its largest power brand, Tiger, is
also being rolled out, fortified with iron.
Your Company was also the first in the industry to remove trans fat from most
its biscuits as yet another meaningful step in offering products that are both
healthy and enjoyable.

53. KWALITY

54. COFFEE DAY

55. HINDUSTAN FOODS

56. KGN ENTERPRISES

57. ENVIRONMENT CONSERVATION

58. NESTLE

59. BRITANNIA

60. KWALITY
GREEN INITIATIVES
Company is committed to offer products that meet
internationally accepted green product standards.
Your Company continues to accord highest priority
in developing eco-friendly products which meet
the best international standards. Accordingly your
company has initiated number of R&D programs
towards developing products based on sustainable
design philosophy starting from raw material
selection to formulation development to
manufacture, application and waste control.

61. COFFEE DAY

62. HINDUSTAN FOODS

63. KGN ENTERPRISES

65. Smt. Harsimrat Kaur Badal is the Minister of
FOOD PROCEECING INDUSTERY
Harsimrat Kaur Badal (born 25 July 1966, punjab)
is the Union Cabinet Minister of Food Processing
in the Government of India and member of
parliament from Bathinda.

66. 1. FOOD SAFETY AND QUALITY
The Ministry of Health and Family Welfare
and the Ministry of Food Processing Industries
have formed different Sectoral Groups in
ordesr to facilitate formulation of a proper
and efficient Food Safety Programme towards
implementation of GMP , GHP and HACCP in
the food industry, either under law or
voluntary.

67. REGULATORY ACTION
The Consumer Affairs Ministry on Monday said the central food
safety regulator FSSAI (Food Safety and Standards Authority of
India) is testing samples from all states and that strict action will
be taken for any violation.
All test reports are expected to come within 2-3 days. A case has
already been lodged against Nestle India by UP food regulator
FSDA in a Barabanki court in Uttar Pradesh over safety standards
of its product Maggi.
Actors Amitabh Bachchan, Madhuri Dixit and Preity Zinta were
also separately dragged to court for promoting the ‘two-minute’
noodles brand.
NESTLE

68. REGULATORY ACTION
Sebi’s action on the share transfer agents comes after
Britannia Industries Ltd
The registrar and 15 other entities are facing an
interim ban order for allegedly indulging in
fraud, under the Prevention of Fraudulent and
Unfair Trade Practices (PFUTP).
BRITANNIA

69. REGULATORY ACTION
REGULATORY ACTION AGAINST COMPANIES AND THEIR
DIRECTORS FOR NON‐ REDRESSAL OF INVESTOR GRIEVANCES
SEBI takes appropriate enforcement actions (adjudication,
directions etc) as provided under the law where progress in
redressal of investor grievances is not satisfactory.
Accordingly, directions under section 11B/11 (4) (b) of SEBI
Act were passed against the following companies and its
directors debarring them from accessing the securities
market and from buying, selling or dealing in securities
directly or indirectly, in whatsoever manner, till all the
investor's grievances against the company are resolved by
them
KWALITY

70. REGULATORY ACTION
SEBI had initiated action against our Subsidiaries, Way2Wealth
Brokers and TSSPL,
by issuing administrative warnings and undertaking
adjudication proceedings. For further details, with
respect to action taken by SEBI against the
aforementioned Subsidiaries, see section “Outstanding
Litigation - Adverse findings against any persons/
entities connected with our Company as regards non
compliance with securities laws
COFFEE DAY

71. REGULATORY ACTION
SEBI bars 11 entities for synchronised trading
Eleven entities have been restrained by SEBI from
buying and selling securities. SEBI passed an ex-parte
interim order on Friday based on prima facie evidence
that these entities were involved in synchronised
trading in the stocks of Polytex India, KGN Enterprises
SEBI said that these entities were responsible for
creating artificial volume in these three scrips apart
from manipulating their prices
KGN ENTERPRISES

72. Food processing industry is one of the largest industries in India, ranking fifth
in terms of production, growth, consumption, and export. The total value
of Indian food processing industry is expected to touch USD 194 billion by
2016 from a value of USD 121 billion in 2015, according to Indian Council of
Agricultural Research (ICAR). The packaged food segment is expected to
grow 9% annually to become a `6 lakh crore industry by 2030, dominated
by milk, sweet and savory snacks and processed poultry, among other
products, according to the report by CII-McKinsey. The ready-to-drink tea
and coffee market in India is expected to touch `2,200 crore in next four
years, according to estimates arrived at the World Tea and Coffee Expo
2016. Branding could drive the next growth wave in the country’s food
processing sector. The total soft drink (carbonated beverages and juices)
market is estimated at ~USD 1 billion. The market is highly seasonal in
nature with consumption varying from 25 million crates per month during
peak season to 15 million during offseason. The market is predominantly
urban with more than 25% contribution from rural areas. Coca cola and
Pepsi dominate the Indian soft drinks market.

73. 1. Energy efficiency
2. Rising cost of food
3. Rising labor cost
4. Food safety issues
5. Growth of international chains
6. Increased government rules, regulations
,standards etc
7. Import tariffs
8. Local chains like to deal with manufactures

74. • Union Budget 2016-17 proposed 100 per cent FDI
through FIPB (Foreign Investment Promotion Board)
route in marketing of food products produced and
manufactured in India.
• The Government of India has relaxed foreign direct
investment (FDI) norms for the sector, allowing up to
100 per cent FDI in food product e-commerce through
automatic route.
• The Indian Council for Fertilizer and Nutrient Research
(ICFNR) will adopt international best practices for
research in fertiliser sector, which will enable farmers
to get good quality fertilisers at affordable rates and
thereby achieve food security for the common man.

75. • FSSAI has issued new rules for importing products, to
address concerns over the entry of sub-standard items
and simplify the process by setting shelf-life norms and
relaxing labelling guidelines.
• The Ministry of Food Processing Industries announced a
scheme for Human Resource Development (HRD) in the
food processing sector. The HRD scheme is being
implemented through State Governments under the
National Mission on Food Processing. The scheme has
the following four components:
– Creation of infrastructure facilities for degree/diploma
courses in food processing sector
– Entrepreneurship Development Programme (EDP)
– Food Processing Training Centres (FPTC)
– Training at recognised institutions at State/National level

76. • FSSAI under the Ministry of Health and Family Welfare
has issued the Food Safety and Standards (Food
Product Standards and Food Additives) Regulations,
2011 and the Food Safety and Standards
(Contaminants, Toxins and Residues) Regulations, 2011
which prescribe the quality and safety standards,
respectively for food products.
• Spices Board, set up by the Ministry of Commerce to
develop and promote Indian spices worldwide, aims
spice exports of US$ 3 billion by 2017.
• The Government of India has approved the setting up
of five numbers of Mega Food Parks in the states of
Bihar, Maharashtra, Himachal Pradesh and
Chhattisgarh. The Government plans to set up 42 such
mega food parks across the country in next three to
four years.

77. 1. Climate change and water scarcity
2.DuPont and PFOA
4. Clean Air Act violations
5. EPA kraft paper mills rule

79. YEARS NESTLE BRITANNIA KWALITY
2011 7569.99 6835 4843.7
2012 10975.98 8332 4685.1
2013 13917.31 9116 5650.2
2014 19163.87 10194 7387.4
2015 19852.18 12164 8660.9
2016 24291.82 15786 8959.7

80. 0
5000
10000
15000
20000
25000
2011 2012 2013 2014 2015 2016
Profitability (₹ in Crores)

81. YEARS COFFEE
DAY
HINDUSTAN
FOODS
KGN ENTERPRISES
2011 18702.80 1397.37 1071.82
2012 18851.43 1417.80 1207.03
2013 16705.70 2492.77 1307.40
2014 8396.59 1876.18 898.02
2015 13071.75 2906.31 1128.83
2016 8975.85 2973.61 1208.41

82. 0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2011 2012 2013 2014 2015 2016
Profitability (₹ in Lakhs)

83. YEARS NESTLE BRITANNIA KWALITY
2011 29770.14 28712 26981.2
2012 41543.72 35638 32910.3
2013 64167.71 38980 34551.8
2014 83446.10 46917 40368.4
2015 97878.32 50637 49400.7
2016 111876.12 56992 54096.5

84. 0
5000
10000
15000
20000
25000
2011 2012 2013 2014 2015 2016
Revenues (₹ in Crores)

85. YEARS COFFEE DAY HINDUSTAN
FOODS
KGN ENTERPRISES
2011 165294.29 81027.7 8894.75
2012 210057.23 103388.8 10682.12
2013 229277.02 132311.3 13980.87
2014 245604.89 170016.9 17403.21
2015 193448.84 198506.7 17442.63
2016 205259.70 239078 21241.01

86. 0
5000
10000
15000
20000
2011 2012 2013 2014 2015 2016
Revenues (₹ in Lakhs)

87.  Net Profit margin :- Net Profit *100
Net Sales
YEAR NESTL
E
BRITANN
IA
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
KGN ENTERPRISES
2013 26.40 24.79 17.00 9.01 18.24 23.83
2014 28.56 22.99 19.06 4.18 20.99 15.88
2015 26.17 25.71 19.88 7.78 20.86 24.93
2016 26.64 29.24 18.12 4.91 18.34 22.12

88.  Gross Profit Margin:- Gross Profit *100
Sales
YEAR NESTLE BRITANNI
A
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
KGN ENTERPRISES
2013 27.88 _ 18.75 9.12 20.95 25.96
2014 31.62 _ 21.60 5.22 30.68 16.03
2015 26.68 _ 20.43 _ 24.35 26.48
2016 29.57 _ 18.43 _ 23.76 23.30

89.  Operating Profit Margin Ratio:-
Operating Income *100
Revenue
YEAR NESTLE BRITANNI
A
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
KGN ENTERPRISES
2013 29.54 _ 20.86 11.62 26.93 28.55
2014 33.29 _ 23.50 7.61 30.68 19.58
2015 28.57 _ 22.32 _ 24.35 30.08
2016 31.38 _ 20.38 _ 23.76 26.98

90.  Liquidity Ratios:-
 Current ratio:- Current assets
Current Liabilities
YEARS NESTLE BRITANNI
A
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
KGN
ENTERPRISES
2013 2.85 4.75 1.76 1.41 5.33 2.86
2014 3.18 3.70 2.19 1.60 5.94 3.15
2015 2.78 3.41 2.30 1.60 4.70 3.45
2016 2.24 3.36 2.71 1.67 5.20 3.07

91.  Quick ratio:- (Current asset – Inventories)
Current Liability
YEARS NES
TLE
BRITANNI
A
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
KGN
ENTERPRISE
S
2013 2.88 4.69 1.74 1.73 5.33 2.86
2014 3.16 3.65 2.17 1.60 5.94 3.15
2015 2.80 3.38 2.27 1.59 4.70 3.45
2016 2.24 3.34 2.68 1.66 5.20 3.07

92.  Profitability Ratios:-
 Earning Per share:-
Net profit after Interest and Tax- Dividend on Preference share
Number of Equity shares
YEARS NESTLE BRITANNI
A
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
KGN ENTERPRISES
2013 65.22 158.76 23.03 16.79 47.12 24.97
2014 95.15 178.39 30.09 8.44 63.89 14.02
2015 98.31 105.91 33.38 13.10 32.87 25.76
2016 116.13 68.73 32.97 8.95 33.26 24.14

93.  Dividend Payout Ratio :- Dividends Paid =Dividend per share*100
Net Income Earning per share
YEARS NEST
LE
BRITANNI
A
KWALIT
Y
COFFEE
DAY
HINDUSTAN
FOODS
INFINITE
COMPUTERS
SOLUTION
2013 33.67 26.45 30.52 29.78 19.80 36.04
2014 33.92 35.49 26.71 74.10 19.31 27.94
2015 80.35 42.01 36.17 114.71 30.85 _
2016 37.45 35.28 18.30 _ 24.10 _

95. NESTLE
Investing in therapies for food allergies

96. BRITANNIA
Product category – Luxury/Premium/Indulgence
Product brand – Britannia Pure Magic (against sunfeast
dark fantasy and Parle Goldenarchs)
Product Characteristic – since Britannia has already got
cakes as well as biscuit production capabilities, we
suggest they can have product such as Jaffa Cakes
under Pure magic brand name.
However, with the forecasted growth of only 10-20% in
biscuits, and considering increasing competition from
global and regional players, we are also considering
other alternatives that we can pursue.

97. KWALITY WALL
•Kwalitywall, the original Indian company, was founded in
1956, and was the first in the region to import machinery for
the mass production and sale of ice cream on a commercial
scale.
•Kwality Wall's was ranked 64th among India's most trusted
brands
according to the Brand Trust Report 2016, in 2015 rank was
180

98. COFFEE DAY
•A recent innovation is the crunchy frappe, wherein
customers filled CD in on how they would like some variations
in the existing frappes. there research threw back the trend of
a liquid snack worldwide.
The combination resulted in creating a mixture of crunchy
oreos in a
creamy chocolatey meltdown.
•Another creation has been the egg wrap, a light lunch or
snack option. It is a hit with CD consumers.

99. HINDUSTHAN FOOD
•Our business is built on brands with purpose – products that
make a difference to consumers and to the world.
•According to the Brand Trust Report 2016 HUL is on 9th rank
in India, in 2015 rank was 13.