Juice Market India September 2014
Executive Summary Market Drivers & Challenges Trends Juice industry is one of the growing sectors in India that has attracted a number of players Changing lifestyle of consumers and increase in income levels have led to increased consumption of juices Many national and international brands are entering the packaged fruit juice segment Drivers Growth in Income and Consumption Increasing Level of Health Consciousness Untapped Market Potential Rising Fruit Imports in India Growth in Retail Market Marketing Campaigns Challenges Reluctant Attitude Towards Fruit Farming Unorganized Nature of the Market Emergence of Juice Bars Fruit Juice as Holistic Solution for Health Improvement New Strategies are Being Adopted Introduction of Newer Flavors and Variants Competitive Landscape Key Players Company A Company B Company C Company D Company E Company F 2
Macroeconomic Indicators Introduction Market Overview Market Segmentation Manufacturing Process Import & Export Drivers & Challenges Government Rules & Policies Trends Consumer Insights Competitive Landscape Strategic Recommendations Appendix 3
Continued rise in fruit drinks consumption, followed by juices and nectars, is fueling growth in the market Indian Juice Market Overview (1/2) Market Size & Growth - Packaged Juice INR bn x 2013 2014e 2015e 2016e 2017e 2018e 2019e 2020e 4
Packaged juices are gradually cementing their place in the urban household in the metros and tier I cities Indian Juice Market Overview (2/2) Market Share of Major Players (2012-13) Share of Organized Sector (2012-13) Dabur PepsiCo Others Organized Sector Unorganized Sector Consumer Buying Behavior (2012-13) Share of India in Global Beverage Consumption(2012-13) India Others Unplanned Juice Consumption Pure Impulse Outside Home Juice Consumption 5
Increase in the number of health-conscious consumers has given a boost to fruit juice market in India Indian Fruit Beverage Industry Market Segmentation (1/2) Fruit Beverage Industry Segmentation (2012-13) Fruit Drinks Fruit Juices Nectar Drinks 6
Fruit beverages market can be divided into three segments Indian Fruit Beverage Industry Market Segmentation (2/2) Fruit Beverages Market Fruit Drinks Fruit Juices Nectar Drinks xxx xxx xxx xxx 7
Manufacturing Process Packaged Fruit Juices (2/3) The manufacturing process can be categorized into the following stages Harvesting Collecting Cleaning/ Grading Extraction 8
Import of Major Types of Juices (1/7) Fruit Juices INR mn 2010-2011 Volume Other Grapefruit Juice Value 2011-2012 2012-2013 2013-2014(Apr- Jun) 000 unit Major Importing Nations Value-Wise (2014) China United States of America United Arab Emirates Brazil Pakistan Others Major Importing Nations Value-Wise (2014) 100 INR mn 2010-2011 Volume 2011-2012 Value 2012-2013 2013-2014(Apr- Jun) 000 unit 0 South Africa United Arab Emirates Sri Lanka United States of America Bangladesh Others 9
Low per capita consumption of juices creates strong opportunity for players to tap this market Untapped Market Potential Impact Per Capita Fruit Juice-Based Beverage Consumption (2013) Liter Germany Switzerland United States of America India 10
Increasing fruit imports is fostering growth of the fruit juice sector Rising Fruit Imports in India Impact Rise in Imports of Fruits (2011-12) Metric Tons x 200,000 0 2011 2012 11
The industry is witnessing a wide variety of strategic activities by the players associated with this industry New strategies are being adopted Company Strategy Analyst view Securing market share and strengthening existing infrastructures 12
Consumer Insights on Juice Products (4/6) Q: Do you consume fruit drinks/ fruit juices or nectars for health and fitness benefits? Options Yes No Q: What is your monthly budget for purchasing fruit drinks/ fruit juices and nectars? Options Les than 100 100-500 Greater than 500 Consumption based on health benefits Budgetary allocation for juices 41.2% Yes No 3.8% 36.5% Less than 100 100-500 Above 500 59.6% 13
Consumer Insights on Juice Products (6/6) Q: From where do you generally purchase these beverages? Q: What is your most preferred flavor? Options Super/ Hyper markets General mom and pop stores Both Options Mango Orange Apple Mixed Fruit Others Place of purchase Flavor Preference Super/Hyper Markets General stores Both Mango Orange Apple Mixed Fruit Others 14
Porter s Five Forces Analysis Threat of New Entrants Impact High Impact Low Impact High Impact Medium Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers Impact Low Threat of Substitutes 15
Public: Domestic Company ABC (x/x) Company Information Offices and Centres India Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Products and Services Chennai Head Office Category Juice Products/Services Key People Name Designation Others 16
Public: Domestic Company ABC (x/x) Financial Snapshot Key Ratios INR mn 0 Financial Summary The company incurred a net profit of INR x mn in FY 2013, as compared to net profit of INR y mn in FY 2012 The company reported total income of INR a mn in FY 2013, registering a decrease of b% over FY 2012 The company earned an operating margin of m% in FY 2013, an decrease of n percentage points over FY 2012 The company reported debt to equity ratio of q FY 2013, a decrease of r% over FY 2012 Key Financial Performance Indicators Indicators Value (-/--/2014) Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Abs) Total Income Net Profit/Loss 2010 2011 2012 2013 INR mn Particulars Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio Cash Ratio Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover y-o-y change (2013-12) 2013 2012 2011 2010 Improved Decline 17
Public: Domestic Company ABC (x/x) Key Business Segments Key Geographic Segments OTC Products Beverages Chemicals Other India xxx 2010 2011 2012 2013 Business Highlights (1/2) 0% 2013 Description News Overview xxx 18
Public: Domestic Company ABC (x/x) Business Highlights (2/2) Description News Distribution Network Acquisition Exports Expansion Plans 19
Public: Domestic Company ABC SWOT Analysis (x/x) S O W T 20
Private: Domestic Company ABC (x/x) Company Information Offices and Centres India Corporate Address Tel No. Fax No. Website Year of Incorporation Products and Services Mumbai Head Office Category Juice Others Products/Services Key People Name Designation 21
Private: Domestic Company ABC (x/x) Shareholders of the Company Name No. of Shares held Ownership Structure Directors or relatives of directors Total 100% Ownership structure corresponds to Date of AGM: 30/09/2013 22
Private: Domestic Company ABC (x/x) Financial Snapshot Key Ratios INR mn Total Income Net Profit/Loss INR mn 300 250 200 Particulars Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed y-o-y change (2013-112 2013 2012 2011 2010 2010 Financial Summary 2011 2012 2013 The company incurred a net profit of INR a mn in FY 2013, as compared to net loss INR bmn in FY 2012 The company reported total income of INR x mn in FY 2013, registering an increase of y% over FY 2012 150 100 The company earned an operating margin of m% FY 2013, an increase of 1npercentage points over FY 2012 The company reported debt to equity ratio of q in FY 2013, an increase of r% over FY 2012 50 0 Return on Working Capital Return on Assets Return on Fixed Assets Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio Cash Ratio Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved Decline 23
Private: Domestic Company ABC (x/x) Business Highlights Description News Overview Manufacturing Facilities Packaging Facility Distribution Network 24
Private: Domestic Company ABC SWOT Analysis (x/x) S O W T 25
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