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Ice Cream Industry - India

December 2008
Executive Summary

              Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in 2009
  Market      North and west account for a% of total sales
              High profit margins ranging between b-c%




                               LE
              Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales
  Drivers &
              Challenges: Competition with the unorganised sector on price and quality, and lack of well-
 Challenges
                              P
              developed cold chain facilities


                             M
  Trends                   SA
              Large investments in advertising
              Diversification of product portfolio targeting specific consumer segments
              Partnerships and franchises pursued to boost distribution
              Falling costs of raw materials offsetting rising milk and sugar prices



              A brand is the market leader
Competition   B and C brand are other strong players
              The premium segment is dominated by U



                                        ICE CREAM MARKET โ€“ INDIA.PPT                                        2
โ€ขMarket Overview
โ€ขDrivers & Challenges
โ€ขTrends
โ€ขCompetition
โ€ขKey Developments




           ICE CREAM MARKET โ€“ INDIA.PPT   3
The industry is growing steadily with the northern and western
regions accounting for the largest consumption

Overview                                                               Size and Growth
โ€ขSize and Growth
                                                                         USD mn
      Worth USD XX mn in 2008                                                                                               V
                                                                       250                      a%
      Growing at a% p.a. in 2005-2008                                                                                 U
                                                                       200                            Z
      Forecast to increase by b% to reach USD YY                                   X      Y
                                                                       150



                                        LE
      mn in 2009
                                                                       100



                                       P
โ€ขCharacteristics                                                        50
      Northern and western regions together                               0




                                    SAM
      account for c% of total market consumption
      Profit margins range from u% to v%
      depending on the product segment
      w% of ice cream sales occur during the
                                                                                  2005   2006

                                                                        Geographic Distribution
                                                                                                     2007       2008 e    2009 f




      summer months of April-June                                                                     North
      x% of sales is through street vendors                                                          a%
      Vanilla is the highest selling flavour and
      together with strawberry and chocolate it                               West d%
      accounts for y% of the market                                                                       b%
                                                                                                               East

                                                                                                c%
                                                                                                 South

Source:

                                                   ICE CREAM MARKET โ€“ INDIA.PPT                                                    4
Drivers & Challenges




                                                              Challenges
                                                              Low quality products and
                                                              competitive pricing from unorganized
                                                              sector
   Drivers
                                                              Lack of cold chain facilities
   Low consumption levels


   Developing institutional channel




                                      ICE CREAM MARKET โ€“ INDIA.PPT                                   5
Key Trends




                                                   Product diversification to target


                             LE
                Large scale advertising
                                                         specific segments




                           MP              Trends


                         SA
             Benefits derived from falling
                                                         Franchises and strategic
                                                         partnerships to enhance
                         costs
                                                               distribution




                                   ICE CREAM MARKET โ€“ INDIA.PPT                        6
X is the market leader with strong competition from U,V and W

 Major Players                                                            Market share
 โ€ขFiercely competitive due to attractive
  economics with profit margins ranging                                                             u%
                                                                                                               Unorganized
  between a-b%
 โ€ขOrganized sector comprises X, Y, Z and a


                                             LE
  number of regional brands
 โ€ขAmul is the market leader and is at the
  forefront of targeting the rural market

                                           MP                                                       v%
                                                                                                               Organized




                                          A
 โ€ขFor most national players viz. U, V and W,                                                                Company U
  revenue from ice cream accounts for a
  small portion of their total revenues
 โ€ขPremium segment:
                                         S
          X is the single largest premium ice cream
                                                                             Company Z
                                                                                          f%
                                                                                                          a%


                                                                                                               b% Company V

          brand
                                                                                                          c%
          New entrants include X,Y and Z                                                       e%
                                                                                                     d%   Company W
                                                                                     Company Y
                                                                                                     Company X
                 A well established unorganized sector creates a fiercely competitive environment for
                 A well established unorganized sector creates a fiercely competitive environment for
                                                  the larger players
                                                  the larger players
Source:

                                                      ICE CREAM MARKET โ€“ INDIA.PPT                                            7
Thank you for the attention
The Ice Cream Market report is a part of Netscribesโ€™ Food & Beverage Industry Series.
For more detailed information or customized research requirements please contact:

Natasha Mehta, CFA                                                                       Subhash Chennuri
Phone:         +65 9651 6382                                                             Phone:         +91 98190 59664
E-Mail:        natasham@netscribes.com                                                   E-Mail:        subhashr@netscribes.com




About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companyโ€™s expertise spans areas of investment
& business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a
true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clientsโ€™ profitability and
growth objectives.
This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt.
Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes
(India) Pvt. Ltd. and no part may be reproduced without prior written permission.

                                            www.netscribes.com
                                                          ICE CREAM MARKET โ€“ INDIA.PPT                                                        8

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Ice Cream Market India Sample

  • 1. Ice Cream Industry - India December 2008
  • 2. Executive Summary Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in 2009 Market North and west account for a% of total sales High profit margins ranging between b-c% LE Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales Drivers & Challenges: Competition with the unorganised sector on price and quality, and lack of well- Challenges P developed cold chain facilities M Trends SA Large investments in advertising Diversification of product portfolio targeting specific consumer segments Partnerships and franchises pursued to boost distribution Falling costs of raw materials offsetting rising milk and sugar prices A brand is the market leader Competition B and C brand are other strong players The premium segment is dominated by U ICE CREAM MARKET โ€“ INDIA.PPT 2
  • 3. โ€ขMarket Overview โ€ขDrivers & Challenges โ€ขTrends โ€ขCompetition โ€ขKey Developments ICE CREAM MARKET โ€“ INDIA.PPT 3
  • 4. The industry is growing steadily with the northern and western regions accounting for the largest consumption Overview Size and Growth โ€ขSize and Growth USD mn Worth USD XX mn in 2008 V 250 a% Growing at a% p.a. in 2005-2008 U 200 Z Forecast to increase by b% to reach USD YY X Y 150 LE mn in 2009 100 P โ€ขCharacteristics 50 Northern and western regions together 0 SAM account for c% of total market consumption Profit margins range from u% to v% depending on the product segment w% of ice cream sales occur during the 2005 2006 Geographic Distribution 2007 2008 e 2009 f summer months of April-June North x% of sales is through street vendors a% Vanilla is the highest selling flavour and together with strawberry and chocolate it West d% accounts for y% of the market b% East c% South Source: ICE CREAM MARKET โ€“ INDIA.PPT 4
  • 5. Drivers & Challenges Challenges Low quality products and competitive pricing from unorganized sector Drivers Lack of cold chain facilities Low consumption levels Developing institutional channel ICE CREAM MARKET โ€“ INDIA.PPT 5
  • 6. Key Trends Product diversification to target LE Large scale advertising specific segments MP Trends SA Benefits derived from falling Franchises and strategic partnerships to enhance costs distribution ICE CREAM MARKET โ€“ INDIA.PPT 6
  • 7. X is the market leader with strong competition from U,V and W Major Players Market share โ€ขFiercely competitive due to attractive economics with profit margins ranging u% Unorganized between a-b% โ€ขOrganized sector comprises X, Y, Z and a LE number of regional brands โ€ขAmul is the market leader and is at the forefront of targeting the rural market MP v% Organized A โ€ขFor most national players viz. U, V and W, Company U revenue from ice cream accounts for a small portion of their total revenues โ€ขPremium segment: S X is the single largest premium ice cream Company Z f% a% b% Company V brand c% New entrants include X,Y and Z e% d% Company W Company Y Company X A well established unorganized sector creates a fiercely competitive environment for A well established unorganized sector creates a fiercely competitive environment for the larger players the larger players Source: ICE CREAM MARKET โ€“ INDIA.PPT 7
  • 8. Thank you for the attention The Ice Cream Market report is a part of Netscribesโ€™ Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Subhash Chennuri Phone: +65 9651 6382 Phone: +91 98190 59664 E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companyโ€™s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clientsโ€™ profitability and growth objectives. This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and no part may be reproduced without prior written permission. www.netscribes.com ICE CREAM MARKET โ€“ INDIA.PPT 8