PowerPoint Presentation

Packaged Food Industry

Industry Overview

Sponsored By:Market ScenarioThe size of the packaged food market in India is estimated at $10 billion

The fifth largest sector

Attracted foreign direct investments (FDI) worth US$ 1,811.06 million from 2000-13

Been largely dominated by the ready to eat segment, which contributed nearly 90% of the total sales

Major playersITC,Britannia,Nestle,HUL,Haldiram, MTR

Major productBakery products, canned/dried processed food, frozen processed food, meal replacement products and condiments

Trends

Customers focus from price to the quality

Demographic changes

Awareness

Rise in price of vegetable

Entry of international companies

Rising business and product innovation

Internationally travelling Indians prefer of packaged food and frozen vegetables as they are convenient and economical

Independent small grocers continued to dominate the distribution of packaged food

Players ProfileIndustry PlayersBrandsKey ProductsMajor CompetitorMTR Food Private LimitedMTR, SnackUpRTE Foods, Masala Powders, Breakfast Mixes,Aachi, HaldiramsParle Products LimitedParle-G, Hide and Seek, krackjack, Parle NamkeenGlucose Biscuits, Cream Biscuits, CookiesBritanniaITC FoodsAashirvaad, Sunfeast, YippeeAtta, Cream biscuits, NoodlesParle, NestleHUL Food BusinessKnorr, Bru, Kwality WallsSoups, Beverages, Frozen DessertsAMUL, NestleNestle IndiaEveryDay, Cerelac, Nescafe, MaggiInstant Noodles, Beverages, Baby foodITC, HULBritannia Industries LimitedTiger, Good Day, Marie Gold, TreatBakery, BiscuitsParleANALYSTS VIEWS INDUSTRY PLAYERSDiversify products in the same segment with continuous innovation

New traditional salts and sweets segment new products

Tap rural market great market potential - largely captured by unorganised players

Financial Aspects Market CapitalisationINR : 8,895 crores Revenue : INR 5,600 croresPAT : INR 233 croresCompany margins : Sharp decline12.3% in FY 05 to 5.3% in FY 12

Market Capitalisation(Rs Crore): 47,872Revenue : 7,900 croresOperating profit : 18.5%

Market CapitalisationINR 291,408 croresFood Business Revenue : INR 4,600 crores

Macro Economic ProfileGovernment RegulationsLaws governing the food industry

Need for the new act

Key Regulations of FSSA

Penalties Impact of the Union Budget

No hike in excise duty hike on Food Industry

Rise in allocation for Ministry of Rural Development augment well for Food Industry

International LawsOwing to need of achieving a high degree of consumer confidence in the quality and safety of produced, processed, sold or exported food following laws have been enacted.

India prevention of food adulteration act, 1954

FDA- USA 1938

The food standards act 1999 UK

Food Safety Standards- ANZ

FDI in India

International Scenario

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