market research report : edible oil market in india

Insert Cover Image using Slide Master ViewDo not distort

Edible Oil Market IndiaEdible Oil Market – India

June 2012

Executive Summary

Market Indian edible oil market is expected to grow with a CAGR of x% over 20‐‐‐‐‐

In 2010, the share of branded edible oil accounted for x% of the total edible oil market in India

Drivers Challenges

Drivers & Challenges

Growing Population and Rise in IncomeGrowth in Retail MarketUntapped Market PotentialAwareness of Health Benefits

Challenges•Rising Edible Oil Prices

•Low Yield per Hectare

• Inadequate Capacity Utilization

Government Initiatives

Vegetable Oil Industry ‐ Status

Edible Oil Import Policy

Trade Agreements to Increase Edible Oil Supply

Export Promotion and Price Stabilization

Product Portfolio Diversification

Import of Foreign Premium Edible OilTrends

Export Promotion and Price Stabilization

Subsidized Edible Oil Distribution Scheme

Competition

Major Players

Company 1 Company 2 Company 3

Mergers and Acquisitions

2EDIBLE OIL MARKET IN INDIA 2012.PPT

Company 4 Company 5 Company 6

•Market Overview• Global

• India

•Manufacturing Process

•Export Import

•Drivers & Challenges

•Government Initiatives

•Trends

•Competition

•Strategic Recommendations


•Appendix

Indian edible oil market to witness robust growth owing to high expected growth in edible oil demand

•Edible oil market in India is expected to reach x mn tonnes growing with a CAGR of y% between 20‐‐‐‐

Edible Oil Market – Overview Edible Oil Demand

25

mn tonnes

Z% x2• Domestic production of edible oil account for x% of the net availability for consumption

• In 20‐‐, branded edible oil accounted for INR y bn of the total INR x bn edible oil market 5

10

15

20x2

x1

the total INR x bn edible oil market

Market Share – Branded Edible Oil (20‐‐)Major Features – Indian Edible Oil Market

020‐‐e20‐‐

Event Impact on the edible oil sectorX%

BA

A Point 1

B Point 2


Y%

During 20‐‐‐‐‐ edible oil production from secondary source is expected…

Edible Oil Production– Primary Source

8

mn MTZ%

4

6

8

a1

x4

b4

a4x3

b3

a3

x2x1

b2

a2

1

b1

0

2

20– 20‐‐e

d4g4

e4 f4c4

20‐‐ ‐20‐‐

e1g3

e3 f3c3

20‐‐‐ 20‐‐

d2g2

f2c2

20‐‐‐20‐‐

d3g1d1

f1c1

e2

D E F GCBA D E F GCBA

• Edible oil production from primary source reached x mn MT declining with a CAGR of y% during 20‐‐‐‐‐

• Production share of A and B grew from x% in 20‐‐ to y% in 20‐‐

• Production share of C decreased from x% in 20‐‐ to y%% in 20‐‐


In 20‐‐, net edible oil availability for consumption exceeded the domestic availability by x mn metric tons

Net Domestic Availability

10

mn MTX1%

4

6

8

10 x4x3x2x1 • Net domestic availability of edible oil refers

to total production less exports and industrial use

• Net domestic availability of edible oil reached x mn MT growing with a CAGR of

0

2

20‐‐‐20‐‐20‐‐‐20‐‐20‐‐‐20‐‐*20‐‐ ‐ 20‐‐

g gx1% during 20‐‐‐‐

20

mn MTY1%

43

Net Availability for Consumption

• Net consumption of edible oil refers to the

5

10

15

20 y4y3y2

y1

pnet domestic availability together with the import of edible oil

• Consumption of edible oil reached z mn MT growing with a CAGR of y% during ‐‐‐‐


020‐‐‐20‐‐20‐‐‐20‐‐20‐‐‐20‐‐20‐‐‐20‐‐

Edible Oil ‐Manufacturing Process (1/3)

A B C DMANNUFACT

F GE

URING H


Indian edible oil market has witnessed trade balance deficit over the past years

Edible Oil Industry – Exports under HS Codes (Value‐wise)

Z%

INR bnCountry‐wise Exports (20‐‐`)

1.0

1.5

2.0

2.5 Z%

x4x3

x2

x1 x1% x2%F

E

D

C

B

A

Edible Oil Industry – Imports under HS Codes (Value‐wise)

0.0

0.5

20‐‐

x4

20‐‐20‐‐20‐‐

x6%x5%

x4%x3%

y p ( )

Country‐wise Imports (20‐‐)

600 Z%x3

INR bn

x4x3%x2%

CBA

0

200

400

x3 x4x2

x1


20‐‐ 20‐‐20‐‐20‐‐x1%

Drivers & Challenges – Summary

Drivers

Challenges

Drivers

Growing Population and Rise in Income

h l k

Rising Edible Oil Prices

Low Yield per Hectare

I d C i U ili iGrowth in Retail Market

Untapped Market Potential

Inadequate Capacity Utilization

Awareness of Health Benefits


Growing population and rising income to emerge as a major growth driver for the Indian edible oil market

ImpactGrowing Population and Rise in Income

• Finding 1

• Finding 2

• Finding 3

• Finding 4

Growing Population Rise in Per Capita Income

2.0

bn

X%x5

80,000

INR

Y%3

0.5

1.0

1.5x5

x4x3x2x1

20,000

40,000

60,000x3

x2x1


0.020‐‐e20‐‐e20‐‐e20‐‐20‐‐

020‐‐‐‐‐20‐‐‐‐‐20‐‐‐‐‐

Food Safety and Standards Authority of India governs the mechanism of…

Vegetable Oil Industry ‐ Status (2011)

• Finding 1

• Finding 2

• Finding 3g

X Y Z

Ax1

y1

B x2 y2

C x3 y3


Trends – Summary

Product Portfolio DiversificationDiversification

Key dTrends

Mergers & AcquisitionsImport of Foreign

i dibl OilMergers & Acquisitions

Premium Edible Oil


Indian edible oil players are producing a host of new variants…

Growing focus

Product Portfolio Diversification (1/2)

Point 1on portfolio diversification

A1 A2 A3 A4

A x1

B x1

B1 B2 B3

C x3

C1 C2 C3 C4


Major Public Companies – Summary

10,000

12,000Profit/Loss (INR mn)

Size of the Bubble represents Market Capitalization in INR mn

4,000

6,000

8,000

2 000

0

2,000x1

x3

-6,000

-4,000

-2,000x2

-10,000

-8,000

-20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

Total Income(INR mn)


The list is not exhaustive

Company 3Company 1 Company 2

Public: Domestic Company – Company 1 (1/3)

Company Information Offices and Centres – India

Corporate Address City 1, Country 1

Tel No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Fax No. 91 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

b

Products and Services

Website ‐‐‐‐‐‐

Year of Incorporation ‐‐

Key People

Products and Services

Category Products/Services

Products Product 1, Product 2……

N D i ti

Regional Offices

Head Office

Brand Names Name 1, Name 2 …… Name Designation

Person 1 Designation





i i l S h K i

Public: Domestic Company – Company 1 . (2/3)

Financial Snapshot Key Ratios

Particulars y‐o‐y change

(20‐‐‐‐‐)20‐‐ 20‐‐ 20‐‐ 20‐‐

Profitability RatiosOperating Margin ‐ ‐ ‐ ‐ ‐

Profit / Loss

Total Income

200,000 3,000

ProfitINR mn

Total IncomeINR mn

x4x3 Net Margin ‐‐ ‐‐ ‐ ‐ ‐

Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐

Return on Equity ‐ ‐ ‐ ‐ ‐

Return on Capital Employed ‐ ‐‐ ‐ ‐ ‐

Return on Working Capital ‐ ‐ ‐ ‐ ‐

Return on Assets ‐ ‐ ‐‐ ‐ ‐

0

50,000

100,000

150,000

0

1,000

2,000

20‐‐20‐‐

x3

20‐‐

x2

20‐‐

x1

Financial Summary

• The company incurred a net profit of INR x mn in FY 20‐‐, as compared to net profit of INR y mn in FY 20‐‐

• The company reported total Income of INR y mn in FY 20‐‐, registering an increase of y% over FY 20

Return on Fixed Assets ‐ ‐ ‐ ‐ ‐

Cost RatiosOperating costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Administration costs (% of Sales)

‐‐ ‐ ‐ ‐ ‐

Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐registering an increase of y% over FY 20‐‐

• The company earned an operating margin of x% in FY 20‐‐ an increase of x percentage points over FY 20‐‐

• The company reported debt to equity ratio of x in FY 20‐‐, an increase of y% over FY 20‐‐

( )

Liquidity RatiosCurrent Ratio ‐ ‐ ‐ ‐ ‐

Cash Ratio ‐ ‐ ‐ ‐ ‐

Leverage RatiosDebt to Equity Ratio ‐ ‐ ‐ ‐ ‐

Financial Summary

Indicators Value (dd/mm/yyy)Market Capitalization (INR) ‐

Total Enterprise Value (INR) ‐

Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐

Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐

Efficiency RatiosFixed Asset Turnover ‐ ‐ ‐ ‐ ‐

Asset Turnover ‐ ‐ ‐ ‐ ‐

Current Asset Turnover ‐ ‐ ‐ ‐‐ ‐


EPS (INR) ‐PE Ratio (Absolute) -

Current Asset TurnoverWorking Capital Turnover ‐ ‐ ‐ ‐ ‐

Capital Employed Turnover ‐ ‐‐ ‐ ‐ ‐

Public: Domestic Company – Company 1 (3/3)

Key Business Segments Key Geographic Segments

FA B C

ED100%

x1A

50%

100%

y4z4 a4

c2

x3

y3z3 a3

c3

y2z2 a2

c4

y1z1

c1

x4

b1d1 a1

b3d3

b4d4

x1 x2

b2d2

0%

50%

0%20--20--20-- 20--

0%20‐‐

Business Highlights

D i ti NDescription News

Overview

• Company is among the X players in India with a total turnover exceeding INR y bn

• It is the largest exporter of A and lecithin and the largest seller of A brand in India

•Major export markets of the company include Country 1 Country 2Major export markets of the company include Country 1, Country 2….

Network• Company boasts of x mn retail stores along with y company depots, more than z distributors and more than b sales staff

New Initiatives• Along with the traditional business the company is also focusing on development of palm plantations, mergers and acquisitions, addition of production capacity and green energy initiatives with a view to


New Initiatives mergers and acquisitions, addition of production capacity and green energy initiatives with a view to ensure accelerated growth

Thank you for the attentionThe Edible Oil Market – India report is part of Research on India’s Food and Beverage Series.For more detailed information or customized research requirements please contact:

Phone: +91 33 4064 6214Phone: 91 33 4064 6214E‐Mail: [email protected]

Follow us on:

About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is


Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

http://www.facebook.com/researchonindia

https://twitter.com/#!/ResearchOnIndia

http://www.linkedin.com/groups?gid=3280715&trk=myg_ugrp_ovr