Dairy market in india 2014 sample

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Dairy Market – India
February 2014

2DAIRY MARKET IN INDIA 2014.PPT
Executive Summary
Market
Consumption of dairy products has grown considerably worldwide
Demand for dairy products is expected to escalate despite the recent surge in prices
Drivers &
Challenges
Competition
Drivers
—Growing Income and Consumption
—Rapid Urbanization
—Favorable Demographics
—Rise in Bovine Population
—Growth of Sub Segments and Other User
Industries
—Marketing Campaigns
—Growing Retail Market
Challenges
—Inadequate Supply of Feed
and Fodder
—Shortage of Cold Storage
Units
—Poor Supply Chain and
Distribution Facility
—Rise in Packaging Costs
Major Players
Company A Company B Company C
Exhibitions and Events
Increased Global Attention
Product Innovation
Growth of Regional Milk Producers
Corporate Activities
Trends

3
•Macro-Economic Indicators
•Introduction
•Market Overview
•Market Segmentation
•Consumer Insights
•Import & Export
•Drivers & Challenges
•Government Rules & Policies
•Government Participation
•Trends
•Competitive Landscape
•Strategic Recommendations
•Appendix
DAIRY MARKET IN INDIA 2014.PPT

4
Economic Indicators (-/-)
11
12
13
14
15
d1
c1
b1
a1
INR tn
Q4
c4
b4
a4
Q3
c3
b3
Q1
a2
b2
a3
Q2
d2
c2
2013-142012-132011-122010-11
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
0.0
0.5
1.0
1.5
2.0
%
Aug 2013 - Sep 2013
r
Jul 2013 - Aug 2013
q
Jun 2013 - Jul 2013
p
Oct 2013 - Nov 2013
t
Sep 2013 - Oct 2013
s
MOBILE INTERNET MARKET IN INDIA 2014.PPT

5
Global consumption of dairy products has grown
remarkably over the past few years
Country Ranks – Milk production-wise (20--) Change in Global Protein Consumption
Global Dairy Market – Overview
• Consumption of protein-based food
items are witnessing upward trend in
the global market
• Milk and other dairy products hold an
important position in normal diet and
their consumption is also growing
• World milk production in 20-- was
found to be ~A mn tonnes
Y%
Other BeveragesMilk
Share of consumption
of milk out of total
global beverage
consumption
Rank Country Milk Production (mn tonnes)
1st EU-27 a1
2nd India a2
3rd USA a3
4th China a4
5th Russia a5
6th Brazil a6
Note*: EU (European Union) 20--
P5%
P4%
P3%
P2%
P1%
19--
N5%
N4%
N3%
N2%
N1%
Others
Cereals
Fruits & Vegetables
Dairy
Meat
Dairy consumption
grew by a%
between 19-- and
20--
X%
Consumption share of milk (20--)

6
SAMPLEIndian Dairy Market – Overview (1/4)
The Indian dairy market is expected to witness remarkable
growth…
• Indian dairy industry is huge and has gained substantial growth momentum over the past few years
• Dairy products have gained popularity among consumers due to various factors such as increasing income
levels, hectic lifestyle and convenience associated with their consumption
 Being the world’s largest producer and consumer of dairy products, India represents one of the most lucrative dairy
markets
• In comparison with other products such as wheat and rice, milk penetration among consumers is as high as
~9-%
• In 20--, Indian dairy market was valued at ~INR x tn
20--e 20--e
x5
20--e
x4
x6
x7
x8
20--e20--e 20--e
x3
20--
x2
20--
x1
INR tn
x9
20--e
Y%
Market Size & Growth

7
SAMPLEDairy Market Segmentation – Rural and Urban
Domestic milk consumption is very high in both urban as
well as rural markets
Share of Consumer Expenditure on Dairy Products (20--)
Consumption Share of Milk (20--)
X2%
X1%
Other Food Items
Dairy
Urban Consumers Rural Consumers
Y2%
Y1%
A1%
A2%
Do not consume milk
Consumes milk
Urban Consumers Rural Consumers
B1%
B2%
• Expenditure on dairy
products account for a
significant share of the
consumer’s wallet
• Increased affordability is
one of the reasons behind
this growing trend
• In India, almost entire
amount of milk produced
gets consumed
domestically
• Demand for processed and
packaged dairy products is
high in the urban market

8
SAMPLE
Import of Major Types of Dairy and Processed Dairy
Products (1/5)
Whole Milk
Skimmed Milk
00
INR mn
20---20--
a4
b4
20---20--20---20--
a3
b3
20---20--
a2
b2
a1
b1
‘000 Kg
Volume Value
X2%
X5%
X4%
X3%
X1%
MALAYSIA
FRANCE
GERMANY
PHILIPPINES
SWITZERLAND
Y%
POLAND
Note: HS Code 04022910 (Whole Milk), HS Code 04021010 (Skimmed Milk)
0 0p3
n4
20---20--
p2
20---20-- 20---20--
n2
p4
INR mn
n3
200—20--
n1
‘000 Kg
p1
Volume Value
Major Importing Nations – Value Wise (20--)
Major Importing Nations – Value Wise (20--)

9
SAMPLE
Drivers & Challenges – Summary
Drivers
Growing Income and Consumption
Rapid Urbanization
Favorable Demographics
Rise in Bovine Population
Growth of Sub Segments and Other
User Industries
Marketing Campaigns
Growing Retail Market
Challenges
Inadequate Supply of Feed and Fodder
Shortage of Cold Storage Units
Deficit in Power Supply
Poor Supply Chain and Distribution
Facilities
Rise in Packaging Costs

10
SAMPLE
`
Exhibition and Events
Increased Global Attention
Corporate Activities
Trends – Summary
Key Trends Product Innovation
Growth of Regional Milk Producers

11
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 20--) (1/3)
Competitive Benchmarking (2/5)
0
Player A
y2
x1
%
x3
Player B
x2
x4
y1
Player C
Operating Margin Net Margin
• Player B recorded operating margin of x2%, higher than that of Player C which recorded operating margin of x3% but
lower than that of Player a which recorded operating margin of x1%
• Net margin for Player A, Player B and Player C are y1%, y2% and y3% respectively, wherein Player A has the highest net
margin among these three companies

12
SAMPLEPublic: Domestic Company – Player A (1/5)
Key People
Products and Services
Company Information Offices and centers – India
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Ticker Symbol xx
Stock Exchange xx
Category Products/Services
Milk Products
Just milk (UHT), Fresh cream, ice cream
mix, instant dessert mix, coffee
creamer, dairy whip mix
Name Designation
Head Office
Noida

13
SAMPLEFinancial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR mn in FY 20--, as compared to net
profit of INR mn in FY 20--
• The company reported total income of INR mn in FY 20--, registering a
decrease of % over FY 20--
• The company earned an operating margin of % in FY 20--, an increase of -
percentage points over FY 20--
• The company reported debt to equity ratio of X in FY 20--, an increase of
Y% over FY 20--
Key Financial Performance Indicators
Indicators Value (27/01/2014)
Market Capitalization (INR mn) xx
Total Enterprise Value (INR mn) xx
EPS (INR) xx
PE Ratio (Abs) xx
Particulars
y-o-y change
(20-----)
20-- 20-- 20-- 20--
Profitability Ratios
Operating Margin 2.38 3.65% 1.27% 5.32% 5.35%
Net Margin -45.80 9.58% 55.38% 28.71% 6.77%
Profit Before Tax Margin -57.43 11.55% 68.98% 33.80% 7.71%
Return on Equity -65.18 6.12% 71.29% 39.53% 8.63%
Return on Capital Employed 0.68 2.26% 1.58% 6.54% 5.44%
Return on Working Capital 6.53 10.80% 4.27% 13.99% 11.38%
Return on Assets 0.46 1.84% 1.38% 5.19% 4.36%
Return on Fixed Assets 10.45 32.72% 22.26% 41.23% 23.94%
Cost Ratios
Operating costs (% of Sales) -0.04 95.93% 95.97% 92.38% 94.35%
Administration costs (% of
Sales)
-2.75 11.68% 14.43% 15.81% 13.27%
Interest costs (% of Sales) -0.48 1.78% 2.26% 2.33% 2.95%
Liquidity Ratios
Current Ratio -45.43% 1.90 3.49 2.79 2.93
Cash Ratio -20.13% 4.27 5.34 2.55 2.64
Leverage Ratios
Debt to Equity Ratio 491.55% 0.19 0.03 0.14 0.26
Debt to Capital Ratio 414.47% 0.16 0.03 0.12 0.20
Interest Coverage Ratio 27.93% 2.28 1.78 3.27 1.91
Efficiency Ratios
Fixed Asset Turnover 45.63% 8.04 5.52 5.41 4.24
Asset Turnover 32.11% 0.45 0.34 0.68 0.77
Current Asset Turnover 66.63% 1.26 0.76 1.18 1.33
Working Capital Turnover 150.45% 2.65 1.06 1.84 2.01
Capital Employed Turnover 22.78% 0.48 0.39 0.84 0.96
Improved Decline
Net Profit/LossTotal Income
0 0
s3
t3
t2
20-- 20--
s2
INR mn
s4
t4
20--20--
s1
t1
Public: Domestic Company – Player B (2/5)

14
SAMPLE
Public: Domestic Company – Player A (3/5)
Key Business Segments Key Geographic Segments
0%
20--
b4
a4
c4
20--
b3
a3 c3
20--
b2
a2 c2
20--
b1
a1 c1
80%
100%
60%
40%
20%
0%
20--
X%
India
Business Highlights
Description News
Overview
•It engages in the production and marketing of dairy milk and milk products in India
•The company is recognized as one of the leading producers of UHT milk, premium range
of flavored milk, ultra pasteurized milk and UHT toned milk, among others
 In addition to dairy business, the firm is engaged in in real estate business, corporate and strategic
advisory services and business process outsourcing services
India is the only geographic
segment in which the company
has been operating for the last
four years
Services & Commodities Trading
Dairy Milk & Milk Products
Real Estate

15
SAMPLE
Description News
Manufacturing Facility
• Its manufacturing facility is well equipped with state-of-the-art dairy processing
equipment from Denmark and France
• The environment-friendly plant is spread over a sprawling area of ~20,000 sq meters
• Modern technique of Ultra Heat Treatment (UHT) with direct steam infusion is deployed
• Aseptic packaging in co-extruded multi-layer PE (Polyethylene) and EVOH (Ethylene Vinyl
Alcohol) film is done
Quality Assurance
• It adheres to ISO 9001 & 22000 principles that ensures production of high quality and
safe milk and milk products
• Raw materials procured are matched with internal as well as external quality standards
• Processing and dispatch of finished goods is done strictly in adherence with the standard
specifications
Public: Domestic Company – Player A (4/5)
Business Highlights

16
SAMPLE
Public: Domestic Company – Player A – SWOT Analysis (5/5)
• x • x
• x• x
TO
WS

17
SAMPLE
Private: Domestic Company – Player A (1/5)
Key People
Products and Services
Company Information Offices and centers – India
Name Designation
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Head Office
Category Products/Services
Milk
Token milk, full cream milk, toned milk
standardized milk, double toned milk,
cow milk, skimmed and UHT toned
Dairy Products
Plain dahi, probiotic dahi, sweet dahi,
lassi, fruit flavored lassi, plain chach,
tadka chach, flavored milk, paneer,
butter, cheese, ghee and ice cream
Noida

18
Private: Domestic Company – Player – Shareholding Pattern
(2/5)
Shareholders of the Company as on 05/06/2013 Ownership Structure
Name No. of Shares held
A -
B -
Total -
20--
X3%
20--
X1%
20--
X2%
Public financial companies
Ownership structure corresponds to Date of AGM: 30/09/2011, 19/07/2012 and
05/06/2013
SAMPLE

19
SAMPLEFinancial Snapshot
Financial Summary
• The company incurred a net profit of INR mn in FY 20--, as
compared to net profit of INR mn in FY 20--
• The company reported total income of INR mn in FY 20--,
registering an increase of % over FY 20--
• The company earned an operating margin of % in FY 20--, an
increase of - percentage points over FY 20--
• The company reported debt to equity ratio of x in FY 20--, an
increase of y% over FY 20--
Net Profit/LossTotal Income
00
INR mn
20--
a1
b1
a2
b2
INR mn
a4
b4
20--
a3
b3
20--20--
Key Ratios
Particulars
y-o-y change
(20-----)
20-- 20-- 20-- 20--
Profitability Ratios
Operating Margin 0.53 0.98% 0.45% 2.65% -0.02%
Net Margin 0.02 0.04% 0.02% 2.74% 0.06%
Profit Before Tax Margin 0.02 0.05% 0.02% 2.74% 0.11%
Return on Equity 0.55 0.87% 0.31% 39.23% 0.77%
Return on Capital Employed 2.00 3.49% 1.49% 8.08% -0.06%
Return on Working Capital 347.31 371.51% 24.21% 10.93% -0.08%
Return on Assets 1.51 2.68% 1.17% 8.08% -0.06%
Return on Fixed Assets 8.57 13.80% 5.23% 37.72% -0.35%
Cost Ratios
Operating costs (% of Sales) -0.53 99.02% 99.55% 97.31% 100.02%
Administration costs (% of
Sales)
0.00 0.00% 0.00% 0.00% 0.00%
Interest costs (% of Sales) 0.26 1.42% 1.16% 1.15% 1.59%
Liquidity Ratios
Current Ratio -5.66% 1.01 1.07 4.91 5.24
Cash Ratio -48.88% 0.15 0.30 1.84 1.71
Leverage Ratios
Debt to Equity Ratio 43.24% 5.06 3.53 3.70 3.39
Debt to Capital Ratio 7.14% 0.83 0.78 0.79 0.77
Interest Coverage Ratio 78.94% 0.69 0.39 2.33 -0.01
Efficiency Ratios
Fixed Asset Turnover 20.59% 14.02 11.63 14.04 17.48
Asset Turnover 4.63% 2.73 2.60 3.01 2.92
Current Asset Turnover -0.51% 3.50 3.52 3.24 3.10
Working Capital Turnover 601.91% 377.52 53.78 4.07 3.84
Capital Employed Turnover 43.13% 21.48 15.01 14.13 12.82
Improved Decline

20
SAMPLEBusiness Highlights
Description News
Overview
• Texttexttexttexttexttexttexttexttexttexttexttexttexttexttexttexttexttexttext
 texttexttexttexttexttexttexttexttexttexttexttexttexttexttexttexttexttext
• It is involved in manufacturing and selling of milk and milk products in India and abroad
 In addition to the milk business, it is also engaged in other food business segments, including edible
oil, fresh fruits & vegetables, frozen products, juices, beverages, processed foods and grocery items
 Texttexttexttexttexttexttexttexttexttexttexttexttext
 Texttexttexttexttexttexttexttexttexttexttexttexttexttext
 Texttexttexttexttexttexttexttexttexttexttexttexttexttext
Infrastructure
• In the manufacturing plant, milk processing is controlled by process automation whereby
state-of-the-art microprocessor technology is adopted to integrate and completely
automate all functions of milk processing to ensure high product quality, reliability and
safety
Quality Assurance
• It has ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004 (EMS)
certifications
Distribution Network
• In addition to the normal distribution system, it has its unique distribution network of bulk
vending milk booths, retail outlets and mobile units
• It markets ~3.2 mn liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and
Hyderabad

21
SAMPLE
Private: Domestic Company – Player A – SWOT Analysis (5/5)
• x • x
• x• x
TO
WS

22
Appendix
Ratio Calculations
Operating Margin
(Operating
Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin
(Income Before Tax / Revenues
*100
Return on Equity (ROE)
(Net Income / Shareholders
Equity)*100
Return on Capital (ROCE)
EBIT / (Total Assets – Current
Liabilities)*100
Return on Working Capital (EBIT / Working Capital) *100
Return on Assets (EBIT / Total Assets)*100
Return on Fixed Assets (EBIT / Fixed Assets) *100
Operating Costs (% of Sales)
(Operating Expenses / Sales)
*100
Administration Costs (% of
Sales)
(Administrative Expenses / Sales)
*100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Ratio Calculations
Current Ratio
Current Assets / Current
Liabilities
Cash Ratio
{(Cash & Bank Balance +
Marketable Securities) / Current
Liabilities)}
Debt to Equity
Total Liabilities / Shareholders
Equity
Debt to Capital Ratio
{Total Debt / (Shareholders
Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover
Sales / (Shareholders Equity +
Total Debt)

23
Sources of Information
Open SourcesAnnual Reports of Companies
Online Consumer Goods MagazinesMagazines and Journals
Company WebsitesLeading Newspapers
Electronic MediaPrint Media
SECONDARY RESEARCH
PRIMARY RESEARCH
Interviews
Leading Industry Vendors and Distributors
Industry Experts

24
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Dairy Market – India report is part of Research on India’s Food & Beverage Industry Series.
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Dairy market in india 2014 sample

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