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The new report, ‘Snacks Market in India’, states that the Indian snacks market is experiencing rising demand due to various driving factors which in turn is providing immense opportunities to manufacturers to grow and operate in the market lucratively.
The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.
The report provides a snapshot of the Indian snack industry which has witnessed several changes since 1995. In the initial years, the market was dominated by two players – traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players.
2. SAMPLE Executive Summary
Market
Indian snacks market was valued at INR XX bn in 20__and is estimated to reach INR YY bn by
2017__
With changing consumer behavior due to various factors such as increasing income levels and
busy urban lifestyle these products are gaining popularity amongst thembusy urban lifestyle, these products are gaining popularity amongst them
Drivers
—Rapid Urbanization
G i I d C ti
Challenges
—Rise in Packaging Costs
U i d S t d L l
Drivers &
Challenges
—Growing Income and Consumption
—Increasing Working Women Population
—Marketing Campaigns
—Growing Retail Market
—Convenience Factor
—Unorganized Sector and Local
Players
—Competitive Price Points
—Health Concerns
—Convenience Factor
Exhibitions and Events
Product Innovation
Corporate Activities
Trends
Launch of Various Ethnic Snacks
Innovative Promotional Campaigns
Introduction of Healthy Snacks
Competition
Major Players
Corporate Activities
Inclusion of Nuts as Snacking Option
Introduction of Healthy Snacks
2SNACKS MARKET IN INDIA 2013.PPT
Competition
Company A Company B. Company C
6. SAMPLE
The Indian snacks market is expected to witness remarkable
growth…
Indian Market – Overview (1/5)
• Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily• Snacks refer to those food products which are consumed between meals to satisfy hunger temporarily
• It has gained popularity amongst consumers due to various factors such as increasing income levels, hectic
lifestyle and convenience associated with its consumption
• Indian snack market is quite competitive in nature due to presence of MNCs, regional and local players as
well as the unorganized sectorwell as the unorganized sector
• During 20__, Indian snack market was valued around INR X1 bn
Market Si e & Gro thMarket Size & Growth
250
300
INR bn
y
x6
x5
50
100
150
200 x4
x3
x2
x1
6SNACKS MARKET IN INDIA 2013.PPT
0
50
20__20__20__20__20__20__
8. SAMPLE Lots of varieties of snacks are available in the market and…
Indian Market – Overview (4/5)
•Snacks market is very dynamic as events such as entry of new players and
launch of wide range of products by existing players keep on happeninglaunch of wide range of products by existing players keep on happening
Whenever new products enter any category, market shares of major players get
affected
Though major players have maintained their top positions, but, their market shares got
reduced in the past few years
Change in Market Share of Major Players
Market Share (20 ) Market Share (20 )Market Share (20__) Market Share (20__)
A6
A5A4
A3
B7
B6
B5
B4B
A
A3
A2
A1
B4
B3
B2
B1
F
E
D
C
8SNACKS MARKET IN INDIA 2013.PPT
B2
Others
14. SAMPLE Import of Major Types of Snacks (1/2)
A Snacks
2,000
‘000 unitINR mn
300 C
ValueVolume
f
e F
E
D
C
B
A
Major Importing Nations – Value Wise (2011)
500
1,000
1,500
2,000300
200
100
S
DR
Q
B
P
A
e
d
c
b
a
FC
B Snacks & Mixtures
00
20__20__20__20__
Major Importing Nations – Value Wise (2011)
u p
T
S
R
Q
P
6,000
8,000
‘000 unitINR mn
200
150
E
ValueVolume
t
s
r
q
U
T
0
2,000
4,000100
50
0
20__
W
H
20__
V
G
20__
U
F
20__
T
14SNACKS MARKET IN INDIA 2013.PPT
Note: HS Code 190190 (Food preparations based on malt extract – Salted Snacks ), HS Code 190410 (Prepared foods obtained by swelling or roasting of cereals –
Packaged Snacks & Mixtures)
________
16. SAMPLE Trends – Summary
Exhibition and X
Product Y
i i i
`Key Trends
Corporate Activities
Inclusion of A as Snacking Option
Launch of Various Q Snacks
d f k
Innovative Promotional Campaigns
16SNACKS MARKET IN INDIA 2013.PPT
Introduction of P Snacks
19. 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
Products and Services
Ticker Symbol xx
Stock Exchange xx
Head OfficeCity A
Key People
Products and Services
N D i ti
Category Products/Services
RTE Products xx Name DesignationRTE Products xx
Other Food Products xx
19SNACKS MARKET IN INDIA 2013.PPT
20. SAMPLE i i l S h K i
Public: Domestic Company – Player A (2/5)
Financial Snapshot Key Ratios
Particulars
y‐o‐y change
(2012‐11)
2012 2011 2010 2009
Profitability Ratios
Operating Margin ‐3.31 7.37% 10.69% 11.63% 14.80%
Net Profit/LossTotal Income
1500
2000 150
INR mn INR mn
d
c
b
a
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
1500
0
50
100
2012
D
2011
C
2010
B
2009
a
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,
registering an increase of 19.7% over FY 2011
Return on Fixed Assets ‐4.90 26.02% 30.92% 33.44% 41.15%
Cost Ratios
Operating 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%registering an increase of 19.7% over FY 2011
• 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
Interest costs (% of Sales) % % % %
Liquidity Ratios
Current Ratio 0.43% 2.49 2.48 4.42 2.60
Cash Ratio ‐14.77% 0.53 0.63 1.76 1.09
Leverage Ratios
Debt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02
b i l i
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn) XX
Total Enterprise Value (INR mn) XX
EPS (INR)
Debt to Capital 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 Ratios
Fixed 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
20
EPS (INR) XX
PE Ratio (Abs) XX
Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66
Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13
Improved Decline
SNACKS MARKET IN INDIA 2013.PPT
26. Appendix
Ratio Calculations
Operating Margin
(Operating
Income/Revenues)*100
Ratio Calculations
Current Ratio
Current Assets / Current
Liabilities
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin
(Income Before Tax / Revenues
*100
(N I / Sh h ld
Cash Ratio
{(Cash & Bank Balance +
Marketable Securities) / Current
Liabilities)}
Debt to Equity
Total Liabilities / Shareholders
E it
Return on Equity (ROE)
(Net Income / Shareholders
Equity)*100
Return on Capital (ROCE)
EBIT / (Total Assets – Current
Liabilities)*100
q y
Equity
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
Sales / (Shareholders Equity +
26SNACKS MARKET IN INDIA 2013.PPT
Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover
Sales / (Shareholders Equity +
Total Debt)
27. Sources of Information
Secondary Research
Print Medium
Leading Newspapers
Primary Research
Interviews
Leading Industry VendorsLeading Newspapers
Journals / Magazines
Business Magazines
Electronic Medium
Leading Industry Vendors
Industry Stakeholders
Industry Experts
Surveys Conducted in Social / Technology Focused
Forums
Company Websites
Government Websites / Resources
Online Magazines
Online Journals / Articles
Forums
/
Premium Databases
Social Networking Space
27SNACKS MARKET IN INDIA 2013.PPT
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Snacks Market – India report is part of Netscribes’ Food & Beverage Series.
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28SNACKS MARKET IN INDIA 2013.PPT
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