market research report : dairy market in india 2013-sample

7/28/2019 Market Research Report : Dairy Market in India 2013-Sample

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–May 2013



Executive Summary

Market Consumption of

dairy

products

has

grown

considerably

worldwide

Indian dairy market was valued at INR XX tn in 20__ and is estimated to reach INR YY tn by 20__

Drivers &

—Growing Income and Consumption

—Rapid Urbanization

—Favorable Demographics

—Rise in Bovine Po ulation

—Inadequate Supply of Feed

and Fodder

—Shortage of Cold Storage

Units

Challenges

—Growth of Sub Segments and Other User Industries

—Marketing

Campaigns—Growing Retail Market

—Poor Supply Chain and

Distribution Facility

—Rise in Packaging Costs

Exhibition and Events

Increased Global Attention

Product InnovationTrends

Major Players

Corporate Activities

2DAIRY MARKET IN INDIA 2013.PPT

Company A Company

B

Company

C



•Macro‐Economic

Indicators

•Introduction

•Market Segmentation

•Consumer Insi hts

•Import & Export

•Drivers &

Challenges

•Government Rules & Policies

•Government Participation

•Competitive Landscape

•Strate ic Recommendations


•Appendix



Economic Indicators (1/3)

Gross Fiscal Deficit: Monthly

INR bn

600f

e

400

300

200

db

a

Exchan e Rate: Monthl

0

Feb‐12Jan‐12Dec‐11Nov‐11Oct‐11Sep‐11

55.0

USD/INR

p

54.0

54.5 ut

s

r

q


53.5

Apr 2013Mar 2013Feb 2013Jan 2013Dec 2012Nov 2012



Global consumption of dairy products has grown remarkably

in the last few years

Global Market

– Overview

• Consumption of protein based food a Consumption share of milk

ems are w ness ng upwar ren n

the global market

• Milk and

other

dairy

products

hold

an

important position in normal diet and

out of total global beverage

consumption

• World milk production in 20__ was

found to be xx mn tonnes

Chan e in Global Protein Consum tionCountr Ranks – Production‐wise 2011

bBA

80%

d

100%

e

s

t B E

D

C

ARank Country Milk Production (mn tonnes)

1st EU‐27 xx

nd

b

c

40%

20%

r

q

60%

Dairy consumption

3rd USA xx

4th China xx

5th Russia Xx


20__

a0% p

19__

between 19__

and

20__6

th

Brazil xx

Note*: EU (European Union)



The Indian dairy market is expected to witness remarkable

growth…

Indian Market

– Overview

(1/3)

• Indian dairy industry is huge and has gained substantial growth momentum in the last few years

• Dairy products have gained popularity amongst consumers due to various factors such as increasing

income

levels,

hectic

lifestyle

and

convenience

associated

with

its

consumption Being the world’s largest producer and consumer of dairy products, India represents one of the most lucrative dairy

markets

• In comparison to other products such as wheat and rice, milk penetration amongst consumers is ~99%

• In 20__, Indian dairy market was valued around INR XX tn

ar e ze row

INR tn

6

5 +11.7%F

E4

3

2

3.6C

BA


0

20__20__e20__e20__20__20__20__



Domestic milk consumption is very high in both urban as

well as rural market

Market Segmentation

– Rural

and

Urban

Share of Consumer Expenditure on Dairy Products (2012)

A

Urban Consumers Rural Consumers

D

• Expenditure on dairy

products account for a

significant share in the

consumer’s wallet

B

YX

C

• Increased affordability is

one of the reasons behind

this growing trend

Consumption Share of Milk (2012)

Urban Consumers Rural Consumers

P

BA

S

,

amount of milk produced

gets consumed

domestically

• Demand for processed and


Q R

high in

the

urban

market



Consumer Insights on Dairy Products (1/10)

Sample Size 55Survey Duration &

Period 3 Weeks – May 2013

Sample Sources Social Media Websites and

Other Related Forums

Quantitative Representation Used Percentage

• Survey on milk and dairy products was

conducted on social media sites and other

related forums

Profile of Respondents – Age Wise (years)

41 &

above

36‐40

31‐35

25‐30

18‐24

• vera survey as een ep c ose‐en e o

capture specific information according to

requirements

•The survey has been conducted amongst a

cd

e b

major Indian cities including Mumbai, Delhi,

Kolkata, Pune, Hyderabad, Bangalore among

others


a




Q: Do you consume dairy and processed dairy

products?

Options

Q: How

often

do

you

consume

them?

1) Yes

2) No

1) Daily

2) Alternate days

3) Weekly

Consumption Share of Dairy Products

b

Frequency of Consumption

d

e

a

c


Yes No Daily Alternate days Weekly




Options

Q: What type of dairy products do you prefer

consuming?

Q: If you consume both, which one do you prefer

more?

1) Liquid milk

2) Processed dairy products

3) Both

1) Liquid milk

2) Processed dairy

products

Consumption Pattern Preference‐wise Share of ‘Both’ Category

Processed dairy products

Liquid milk

45

%

c

25

30

35

x y

5

10

15b

a


BothProcessed

dairy productsLiquid

milk



SAMPLE

Import of Major Types of Dairy and Processed Dairy

Products (1/5)

Whole Milk

‘000 unitINR mn

300 C

ValueVolume

f E

D

B

AMajor

Importing

Nations

– Value

Wise

(2011)

500

1,000

1,500

,

200

100

S

DRQ

B

P

A

d

c

b

a

Skimmed Milk

00

20__20__20__20__

Major Importing

Nations

– Value

Wise

(2011)

u pS

R

Q

P

6,000

8,000

‘000 unitINR mn

200

150

E

ValueVolume

t

sr

q

U

0

2,000

4,000100

50

0

20__

W

H

20__

V

G

20__

U

F

20__

T

11

Note: HS Code 04022910 (Whole Milk), HS Code 04021010 (Skimmed Milk)

DAIRY MARKET IN INDIA 2013.PPT



Drivers & Challenges – Summary

DriversChallenges

Rapid Urbanization

Inadequate Supply of Feed and Fodder

Shortage of Cold Storage Units

Favorable Demographics

Rise in Bovine Population

Deficit in Power Supply

Poor Supply Chain and Distribution

Facility

row o u egmen s an er

User Industries

Marketing Campaigns

Rise in Packaging Costs

Growing Retail Market




Trends – Summary

Exhibition and X

Increased Y Attention

`Key Trends Product

Z

Growth

of

A

Cor orate Activities




Competitive Benchmarking (1/5)

Public Trading Comparables (FY 2012)

Company A Company B Company C Company D Company E

Market Capitalization

(INR mn)XX XX XX XX XX

Share Price (INR) XX XX XX XX XX

EV/EBITDA (x) XX XX XX XX XX

EV/Revenue (x) XX XX XX XX XX

PE Ratio XX XX XX XX XX


Note: Top 5 Public companies based on the Market Capitalization; Market Capitalization, Share Price and PE ratio is as of 17/05/2013



SAMPLE SAMPLE

Competitive Benchmarking (2/5)

Key Ratios of Top 3 Companies – Operational Basis (FY 2011) (1/3)

% Net MarginOperating Margin

11.04

30.39

7.30

21.73

10

20

30

. 1.41

0

CompanyCCompany BCompany A

• xx




SAMPLE

Public: Domestic Company – Player A (1/5)

Company Information Offices and Centres – India

Corporate Address xx

Tel No. xx

Fax No. xx

Website xx

Year of Incorporation xx

Ticker Symbol xx

Stock Exchange xxHead OfficeCity A

Key People

Category Products/Services

ame es gna on

Other Food Products xx




SAMPLE


F nanc a Snaps ot Key Rat os

Particulars

y‐o‐y change

(2012‐11)2012 2011 2010 2009

Profitability RatiosOperating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%

Net Profit/Loss Total Income

2000 150

INR mn INR mnd

cb

Net Margin ‐6.73 4.02% 10.75% 12.08% 7.61%

Profit Before Tax Margin ‐5.22 6.52% 11.74% 15.66% 11.00%

Return on Equity ‐7.25 5.51% 12.76% 13.22% 9.02%

Return on Capital Employed ‐2.22 8.50% 10.73% 12.11% 16.70%

Return on Working Capital ‐7.92 20.82% 28.74% 28.25% 56.05%

Return on Assets ‐1.89 6.67% 8.56% 10.77% 14.08%

0

500

1000

0

50

100

2012

D

2011

C

2010

B

2009

A

Financial Summary

• The company incurred a net profit of INR 63.7 mn in FY 2012, as compared

to net profit of INR 142.4 mn in FY 2011

• The company reported total income of INR 1585.4 mn in FY 2012,

re isterin an increase of 19.7% over FY 2011

Return on Fixed Assets ‐4.90 26.02% 30.92% 33.44% 41.15%

Cost RatiosOperating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70%

Administration costs (% of

Sales) 5.78 33.11% 27.33% 22.91% 25.64%

Interest costs % of Sales ‐0.24 0.82% 1.06% 1.21% 1.74%

• The company earned an operating margin of 7.37% in FY 2012, a decrease

of 3.31 percentage points over FY 2011

• The company reported debt to equity ratio of 0.32 in FY 2012, a decrease

of 7.22% over FY 2011

Liquidity RatiosCurrent Ratio 0.43% 2.49 2.48 4.42 2.60

Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09

Leverage RatiosDebt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy)

Market Capitalization (INR mn) XX

Total Enterprise Value (INR mn) XX

De t to Capita Ratio 5.46% 0.24 0.23 0.01 0.02

Interest Coverage Ratio ‐12.08% 9.10 10.35 10.14 8.78

Efficiency RatiosFixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69

Asset Turnover 14.00% 0.89 0.78 0.88 0.92

Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26

17

XX

PE Ratio

(Abs) XX Working

Capital

Turnover5.98% 2.78 2.62 2.30 3.66

Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13

Improved Decline

DAIRY MARKET IN INDIA 2013.PPT



SAMPLE


Key Business Segments Key Geographic Segments

ExportsIndiaProcessed and Preserved FoodsTraded Goods

50%

100%

FED

C

B

A

50%

100%

TR

S

P

Q

U

2012201120102009 201120102009 2012

Business Highlights

Description News

Overview •XX




SAMPLE


Description News

Business Highlights

Global Presence • XX

Qualit Assurance • XX

xpans ons •


P bli D ti C Pl A SWOT A l i



SAMPLE

Public: Domestic

Company

– Player

A

– SWOT

Analysis

(5/5)

• xx • xx

WS

TO

• xx• xx




Appendix

Ratio Calculations

Operating Margin (Operating

Income/Revenues)*100

Ratio Calculations

Current RatioCurrent Assets / Current

Liabilities

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before

Tax

/ Revenues

*100

Cash Ratio

{(Cash & Bank Balance +

Marketable Securities) / Current

Liabilities)}

Debt to E uit

Total Liabilities / Shareholders

Return on Equity (ROE) et ncome are o ers

Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current

Liabilities)*100

qu y

Debt to Capital Ratio{Total Debt / (Shareholders

Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Return on Working Capital (EBIT / Working Capital) *100

Return on Assets (EBIT / Total Assets)*100

Return on Fixed Assets (EBIT / Fixed Assets) *100

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Operating Costs (% of Sales) (Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

+


Interest Costs (% of Sales) (Interest Expenses

/ Sales)

*100

Capital Employed Turnover

Total Debt)



Sources of Information

Secondary Research

Print Medium

Primary Research

Interviews

Journals / Magazines

Business Magazines

Electronic Medium

Industry Stakeholders

Industry Experts

Surveys Conducted in Social / Technology Focused

Company Websites

Government Websites / Resources

Online

MagazinesOnline Journals Articles

Premium Databases

Social Networking Space




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