animal health industry india 2014

Data for AH Industry Professionals Dr. Sandeep Juneja

Sep. 2014

www.animalhealthindia.com

© 2019 Animalhealthindia.com; HyPro Group of Companies www.animalhealthindia.com

Disclaimer: * - All data and information on this website is compiled from various sources, experiences and anecdotes. Readers are advised caution and are suggested to exercise their own judgment in using this data and information

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A. India – Demographic Dividends

B. India – Animal Health Market

1. Animal Populations

2. Milk Opportunity

3. Meat / Wool Opportunity

4. Poultry Opportunity

5. Companion Animals Opportunity

6. Aquaculture Opportunity

C. India – Animal HealthCare Market

Discussion Topics



Size of a Continent

1.25 Billion Population

4th largest economy in the World

on PPP Basis

GDP Growth rate of ~5.7% in 1st

Qtr. 2014

18 languages, >2,000 dialects

All major religions

Largest English Speaking

Population in the world

31 Provinces and >600,000

villages

~350 Million Strong Middle Class

and growing Source: Various Press reports

India – Size & Scale



India – States’ GDP v/s Certain Countries

Size of a Continent

Population of some of the

states exceeds many

countries’ populations

States’ GDPs as big as certain

Country GDPs

Diversity across different

states

Local / Glocal approach

needed to be Successful

Source: The Economist EIU; 2013



Historically India & China were World’s Largest Economies & History May

Repeat…….

India – GDPs’ over Last 1000 Years



India – Top 10 Economies by 2050

Historically India & China were World’s Largest Economies and History may repeat

China & India may be Leading Economies once again



India – Demographic Dividends

Strong population growth to drive future GDP

“Internal Consumption Driven Growth”

Source: KKR India Report Nov. 2012



India – Agri. & Livestock Major Contributors

Agrarian economy - “green, white & pink revolution”

Source: KKR India Report Nov. 2012




B. India – Animal Health Market

1. Animal Populations

2. Milk Opportunity






Discussion Topics



India – Animal Population; Govt. of India Data

BASIC ANIMAL HUSBANDRY

& FISHERIES STATISTICS

2013

GOVERNMENT OF INDIA

MINISTRY OF AGRICULTURE

DEPARTMENT OF ANIMAL HUSBANDRY,

DAIRYING AND FISHERIES

KRISHI BHAWAN, NEW DELHI

www.dahd.nic.in

Graphic Representation

of Key Numbers on the

next slide

1951 – 2007 Figures (Million)



India – Animal Population; 2012 v/s 2007

# - Excluding Stray Dogs

2007 (Millions)

2012 (Millions)

% Change

Cattle 199.07 190.90 -4.10

Buffaloes 105.34 108.70 3.19

Goats 140.53 135.17 -3.82

Sheep 71.55 65.06 -9.07

Camel 0.517 0.400 -22.63

Pigs 11.13 10.29 -7.54

Dogs# 19.08 11.67 -38.85

Horses & Ponies 0.612 0.625 2.12

Source: 19th Livestock Census Report by DAHD, Govt.of India Report released in June 2014



India – Animal Population; Govt. of India Data

191

109 65

135

10.3

11.7

>80,000

Ha.

Cattle

Aquaculture

Buffaloes

Sheep

Goat

Pig

Dog

Horse

(0.62)

All Figures in Millions exc. Aquaculture

(Source: 19th Census Report, DAHD, Govt.

of India 2012 Numbers);

Report Released in June 2014



India – Animal Population; FAO Data

country

item 2013

India Buffaloes 115,420,000 *

India Camels 436,000 F

India Cattle 214,350,000 *

India Chickens

India Goats 162,000,000 F

India Horses 528,000 F

India Mules 104,000 F

India Pigs 9,300,000 F

India Sheep 75,500,000 F

* = Unofficial figure | [ ] = Official data | F = FAO estimate

FAOSTAT | © FAO Statistics Division 2014 | 24 September 2014



India – Animal Population; FAO Data

214.3*

115.4*

75.5F

162F

9.3F

Cattle

Buffaloes

Sheep

Goat

Pig Horse

(0.63F)

All Figures in Millions

(Source: FAO Website; Accessed

Sep 24, 2014)

* = Unofficial figure | [ ] = Official data | F = FAO estimate

FAOSTAT | © FAO Statistics Division 2014 | 24 September 2014



India – Livestock Opportunity

Livestock is more than Cattle – 4 Fold Opportunity

1. Cattle

~ 191 Mill. Heads:

a) Indigenous

b) Cross Bred

Backyard to Semi-

Commercial

Reared for:

a) Milk

b) Draught

2. Buffaloes

~ 109 Mill. Heads:

a) Water Buffaloes

Indigenous

Shift to Fully Comm.

Reared for:

a) Milk

b) Buffalo Meat

c) Draught

3. Sheep & Goats

Sheep: 65 Mill. Heads

Goats: 135 Mill Heads

Primarily Backyard

Reared for:

a) Milk (Goats)

b) Meat

(Goat/Sheep)

c) Wool (Sheep)

4. Pigs

~ 10.3 Mill. Heads:

a) Indigenous

b) Cross Bred

Backyard to Semi-

Commercial

Reared for:

a) Pork

Source: Animal Census, DAHD, Based on 19th Census Report by DAHD, Released in June 2014




B. India – Animal Health Market 1. Animal Populations

2. Milk Opportunity






Discussion Topics



India – Household Spend on Food Items

• Milk is 2nd largest item of monthly food spend (18% in Urban & 15% in Rural Areas)

• Milk demand is driven by increasing population and preference for milk and milk products

• Market dominated by un-organized sector (80%)


97.1 102.6

107.9 112.2

116.4 121.8

127.9 132.4

0

20

40

60

80

100

120

140

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13


India – Largest Milk Producer & Consumer

Milk production; Million MT

Source: BAHF 2013, DAHD



India – Milk Industry Evolution

Source: FICCI, PwC Analysis Food 360°



India – Milk Demand Related to Prosperity



India – Growth in Milk & Other Foods by 2020

Household Demand for Milk Products & Other Foods - 2000 to 2020

2000 2010 2020 % Growth

(MT) (MT) (MT) (2000-2020)

Milk / Milk Products 64.1 106.4 165.8 159

Fruits/ Vegetables 48.4 75.2 113.2 134

Meat & Fish 4.7 7.2 10.8 131

Edible Oils 5.3 7.7 10.9 107

Pulses 10.6 14.6 19.5 85

Rice 78.3 98 118.9 52

Wheat 54.2 72.1 92.4 70

Source: CLFMA Report



India – Leads Global Demand for Milk



India – Milk Production by Cattle & Buffaloes



India – Top Milk Producing States

• Milk is the largest Agricultural

Commodity in India both Volume

wise as well as Value wise

• The milk production has grown at

3.7% CAGR in the past decade;

much higher growth rate than any

other agricultural commodity





2. Milk Opportunity






Discussion Topics



India – Buffalo Meat Prod. / Exports / Consumption

2011 2012 2013 2014 (P)

Production 2.98 3.64 3.70 3.90

Exports 1.29 1.66 1.55 1.65

Local Consumption 1.96 1.98 2.20 2.30

2.98

3.64 3.70 3.90

1.29

1.66 1.55 1.65 1.96 1.98

2.20 2.30

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Mil

lio

n T

on

s

Source: USDA Gain Report 2013



India – Buffalo Meat Production / Exports

Source: APEDA 2013

• Buffalo Meat Production in India:

2007 - 1.6 Million Tons

2013 - 3.7 Million Tons

• Buffalo Meat Exports from India:

2010 - 1.3 Billion $

2013 - 2.8 Billion $

• Annual Growth in Buffalo Meat Exports: 15%



India – Buffalo / Red Meat Exports

Red Meat exports forecast to grow by 29% in 2013 even on a higher base

From 9% in 2009, India accounted for >25% of Global Red Meat Exports in 2013

World’s Leading Red Meat Exporters

Source: Press Reports



India – Wool Production

43.9 42.8 43.1 42.9

44.7

30

35

40

45

2007-08 2008-09 2009-10 2010-11 2011-12

Million Kg

13.1

7.7 7.5 4.9

2.8

0

5

10

15

Rajasthan Karnataka J & K Andhra

Pradesh

Gujarat

Top 5 States - 2012

(Million Kg)

Source: BAHF 2013, DAHD



India – Goat Meat Production

4.00 4.28 4.56 4.86 5.51

0.00

2.00

4.00

6.00

2007-08 2008-09 2009-10 2010-11 2011-12

Million Tons

0.96 0.82

0.61 0.58 0.46

0

0.5

1

1.5

UP AP West Bengal Maharashtra Tamil Nadu

Top 5 States - 2012

(Million Tons) Source: BAHF 2013, DAHD



India – Sheep & Goat Meat Exports

Source: APPEDA 2013

• Indian Sheep & Goat Meat Exports:

2010 - 0.04 Billion $ (0.012 Million Tons)

2013 - 0.06 Billion $ (0.016 Million Tons)

• Only Exports Figures

• Rest of the production consumed locally





2. Milk Opportunity






Discussion Topics



India – Poultry Industry

Avg. Per Capita

Consumption

World India

Eggs (in Nos.)* 155 nos.* 57 nos.*

Poultry Meat (in Kg)* 12.5 Kg* 2.8 Kg*

Source: Press Reports, Company Websites, Own Est.

Broilers* Layers* Breeders*

Commercial

Poultry

Population

(Millions)

2,300* 210*

(60%

replacement)

21*

Growth (%) 10-12%* 6-8%* 7-9%*

Growth

Opportunity

* - All this Data needs to be verified / Citations Needed



India – Poultry Industry

Source: Press Reports, Own Est.

Ludhiana

Karnal

Namakkal

Pune

Bangalore

Coimbatore

Hyderabad

Kolkata

Vijaywada

Rajasthan

MP

UP

Bihar & Jharkhand

NE

J&K

TN

AP

Kerela

HP

Punjab

Haryana

Orissa

Goa Karnataka

Chhattisgarh

UC

WB

North

(Har, Pun, JK, Raj, UC, UP)

B 500

L 45

Breeder 4.5

South

(AP, TN+ Kerla)

B 800

L 120

Breeder 9

East

(WB, NE, B, Jh, Chh, Orissa)

B 500

L 10

Breeder 1.5

West

(Maha, Guj, MP, CG & Kar)

B 600

L 45

Breeder 6

Nasik

Lucknow

Jind

All Fig. in Millions)

Hospet



India – Poultry Industry Key Points

5th largest poultry meat producer and 3rd largest egg producer

Broiler segment >50% integrated (primarily contract growing)

90% birds sold live; Cobb >65% mkt. share

Layers not integrated; emerging market of pullet producers;

>90% feed self produced

> 95% eggs sold unbranded; Babcock >70% market share; But getting

consolidated; branding activities on increase

Retail sector getting organized - QSRs rapidly expanding McDonalds,

KFCs, Pizza Huts, Domino’s etc.

Key points*

Source: Press Reports, Company Websites, Own Est.

* - All this Data needs to be verified / Citations needed





2. Milk Opportunity






Discussion Topics



India – Well Cared Companion Animals*

0.1

1.2

4.4

0 1 2 3 4 5

Horses

Cats

Dogs

~ 4,500 Race Horses + ~2,000 Breeding Stock

Fig. in Millions except for Horses

* - Data from Various Press Reports & Anecdotes. Citations Needed



India – Companion Animals Growth Rate



India – Companion Animals’ Key Trends

One of the fastest growing segments within Indian Animal Health Industry

Increasing Disposable Incomes & Nuclear families driving the segment

Pet – Human Bonding getting strengthened

Certain Human Lifestyle trends….being replicated for Companion Animals

(Grooming Parlors, Spas, Specialty Hotels etc.)

Human Medicine Technological Advances being extended into Companion

Animals Practice (e.g. Cardiac Care, CKD, Obesity etc.)

Well established and accepted Pet Food Industry fueling the growth in

adoptions, care and longevity of Companion Animals

Increased investments into Clinics and Care Facilities by Vets

Companion Animals Practice as a lucrative career opportunity

Key Trends*

Source: Press Reports, Company Websites, Anecdotes.





2. Milk Opportunity






Discussion Topics



India – Aquaculture Potential

Total Coast Line (includes Andaman & Nicobar islands : 8,129 Km

and Lakshadweep islands)

Total Brackish Water area available : 1.2 Million ha.

FRESH WATER RESOURCES

Fresh Water Earthen Ponds: 2.25 Million ha

Lakes and Reservoirs: 2.09 Million ha

Abandoned paddy fields suitable for

fish culture: 2.3 Million ha

Rivers & Canals: 0.16 Million KM

Source: MPEDA



India – Aquaculture At a Glance

• Global Position: 2nd (1st in In-land Production)

• Contribution of Fisheries to GDP on A Stand Alone

Basis: 0.80%

• Contribution of Aquaculture to Agri. GDP: 4.15%

• Per capita Fish Availability: 9.8

• Annual Exports Earnings: 5 Billion $ (2013 – 2014)

• Growth in Fisheries Segment during 11th Five Year

Plan: 3.6% P.A.

Source: Press Reports, APEDA, MPEDA



India – Fresh Water Aquaculture

FRESH WATER AREA & PRODUCTION in INDIA

• Fresh water Aquaculture in India is mainly Contribution of Fisheries Carp

Based and Carps alone contribute over 1.3 Million Tons / Year

• The average production level is 2 Tons / Hectare/Year

• This production corresponds to an avg. of 0.6 Million Hectare of Fresh

Water Ponds

• Major Indian carp Species cultured are: Catla catla, Labeo Rohita (Rohu),

Cirrihinus mrigala (Mrigala)

• Another main species cultured in Fresh Water is Macrobrachium rosen begii (Scampi)

Area under Cultivation: ~ 36,600 Hectare

Production: ~ 24,200 Tons

Source: Rajiv Gandhi Centre for Aquaculture



India – Brackish Water Area & Production

BRACKISH WATER AREA & PRODUCTION in INDIA

• Total Area Under Culture: 157,000 Ha.

(around 14% of the total

potential area)

• Shrimp Production: 102,940 Tons

• Avg. Production / Ha.: 600 Kg/ Ha./Year

• Contribution to Exports: 58% by Volume

85% by Values

Source: Rajiv Gandhi Centre for Aquaculture



India – Aquaculture Exports

Export details 2012-13 2013-14 Growth %

Quantity Tons 928,215 983,756 5.98

Value Rs. Crore 18,856.26 30,213.26 60.23

Value US $ Million 3,511.67 5,007.70 42.60

Unit Value

(US$/Kg) 3.78 5.09 34.55

Marine Exports during 2013-14 compared to 2012-13

Exports of All Marine Products Source: MPEDA





2. Milk Opportunity






Discussion Topics



India – Animal Health Care Market

Source : CIM – Merchant Bankers, Extrapolations, Market Intelligence and Press reports

• 12th largest market in the world in

value terms

• Livestock remains the biggest

segment with steady growth

• Ready acceptance of new products

/ formulations

• Some consolidation witnessed in

the past; expect the trend to

continue

• Market expected to grow at a

CAGR of at least 8%; if more, even

better. The more the merrier!

220 259

330

158

178

217

22

28

40

-

100

200

300

400

500

600

700

2010 2012 2015 PLivestock Poultry Companion Animals

Animal HealthCare (USD Mill.)

~ 400

~465

~ 590

1 USD = INR 60



India – AH Market; Species Split

Species Split (%) Therapeutic Segment Split (%)

56% 38%

6%

Livestock Poultry Companion Animals

43%

28%

29%

Therapeutics Vaccines Feed Supplements

Livestock includes: Cattle, Buffalo, Sheep, Goats and Aquaculture

Source : CIM – Merchant Bankers, Market Intelligence and Press reports



World – Biologicals Market; Exp. Growth Areas

Animal Vaccine Market

CAGR (2013 – 2018)

3- 4%

4- 6%

5- 7%

8- 10%

10- 12%

13- 15%

13- 15%

14- 16%

• Significant Investments by Respective Govts.

• Increased spending by Private Farmers on Prevention

Source: Google Search


67 75 91

112

155 48

55

65

77

97

7 8

12

15

20

0

50

100

150

200

250

300

2012 2013 2015 2017 2020Livestock Poultry Companion Animals


India – Biologicals Market; Opportunity Area

122 138

168

204

272

Cattle Vaccines – Key Growth Drivers

Rapid industrialization & organization in livestock farming

Govt. initiatives on disease control, e.g. FMD, PPR, Brucella etc.

Improved distribution reach esp. for cold chain products

1 USD = INR 60

Figures in USD Million

Source : Market Intelligence,

Extrapolations and Press reports


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