Packaged Food Industry

Industry Overvie

Sponsored

Market Scenario
The 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 players
ITC,Britannia,Nestle,HUL,Haldiram, MTR
Major product
Bakery 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

Buyer
Power

Supplier
power

Threat of
substitutes

Threat of
New
entrants

Existing
competitio
n

Players Profile

Industry
Players

Brands

Key Products

Major
Competitor
Aachi, Haldirams

MTR Food
Private
Limited

MTR, SnackUp

RTE Foods,
Masala Powders,
Breakfast Mixes,

Parle Products
Limited

Parle-G, Hide
and Seek,
krackjack, Parle
Namkeen

Glucose Biscuits, Britannia

Cream Biscuits,
Cookies

ITC Foods

Aashirvaad,
Atta, Cream
Parle, Nestle
Sunfeast, Yippee biscuits, Noodles

HUL Food
Business

Knorr, Bru,
Kwality Walls

Soups,
Beverages,
Frozen Desserts

Nestle India

EveryDay,
Cerelac,
Nescafe, Maggi

Instant Noodles, ITC, HUL

Beverages, Baby
food

Britannia
Industries
Limited

Tiger, Good Day, Bakery, Biscuits

Marie Gold, Treat

AMUL, Nestle

Parle

ANALYSTS VIEWS INDUSTRY

PLAYERS
Diversify 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

Britannia
8,000
7,000
6,000
5,000
4,000

Net Sales

3,000
2,000

1,000
0
2012 2013
2014 2015

Market Capitalisation
INR : 8,895 crores
Revenue : INR 5,600 crores
PAT : INR 233 crores
Company margins : Sharp
decline
12.3% in FY 05 to 5.3% in
FY 12

Nestle

12,000
10,000
8,000
6,000

Sales

4,000
2,000
0
2012 2013
2014 2015

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

ITC

40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0

Sales

2012 2013
2014 2015
Market Capitalisation
INR 291,408 crores
Food Business Revenue :
INR 4,600 crores

Market Share

ITC Group; 2.5

Karnataka Cooperative Milk Producers Federation Ltd; 2.6
Gujarat Co-operative Milk Marketing Federation Ltd(AMUL); 7.3
Mondelez International, Inc; 3.2
National Dairy Development Board; 4.7
Ruchi Group; 3.4
Nestl India; 4.6
Parle Products Pvt Ltd; 4.1
Britannia Industries Ltd; 4.3

Gujarat Co-operative
Milk Marketing
Federation Ltd(AMUL)
National Dairy
Development Board
Nestl India
Britannia Industries Ltd
Parle Products Pvt Ltd
Ruchi Group
Mondelez International,
Inc
Karnataka Cooperative
Milk Producers
Federation Ltd
ITC Group

Macro Economic Profile

Government Regulations
Laws 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

International Laws
Owing 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

Thank you