Bottled Water Market – India
September 2013
2
SAMPLE Executive Summary
Market
Drivers & Challenges
Competitive Landscape
Drivers Growth in urbanization and population Increasing level of health awareness Bottled water is a rapidly growing and competitive
market segment Rise in income and consumption Influx of foreign tourists Water shortage
Trends
Challenges Spurious brands have flooded the bottled water
market Low penetration in rural markets Possible threat from litigation and public campaigns Brand and category differentiation Increasing use of water purifiers
Key Players
Company A Company B Company C
Company D Company E Company F
New entrants from other sectors results in an increase in the number of brands Wide range of packaging formats to target a
diverse group of consumers Bottled water brands are trying to capture
market share abroad
Bottled water industry is one of the growing sectors in India that has attracted a number of players Growing health consciousness among consumers and changing life styles have made bottled water an essential
part of the monthly household expenditure list of Indian consumers
BOTTLED WATER MARKET IN INDIA 2013.PPT
Flavored drinking water is a top end innovation within the bottled water segment in India Brand building to give momentum to brand
differentiation by consumers Institutions continue to be an important channel
to reach out to the core masses
3 BOTTLED WATER MARKET IN INDIA 2013.PPT
•Macro Economic Indicators •Introduction •Market Overview •Distribution Channel •Export & Import •Drivers & Challenges •Government Regulations •Key Trends •Competitive Landscape •Recent Developments •Strategic Insights •Appendix
4
SAMPLE Economic Indicators (2/3)
Gross Fiscal Deficit: Monthly
Exchange Rate: Monthly
INR bn
Month--
x6
Month--
x5
Month--
x4
Month--
x3
Month--
x2
Month--
x1
USD/INR
Month 20--
y6
Month 20--
y5
Month 20--
y4
Month 20--
y3
Month 20--
y2
Month 20--
y1
BOTTLED WATER MARKET IN INDIA 2013.PPT
5
SAMPLE
Bottled water is one of the fastest growing industrial sectors in India that has caught the attention of marketers
• Point 1
• Point 2
• Point 3
• Point 4
INR bn
X
20--e
x6
20--e
x5
20--e
x4
20--e
x3
20--e
x2
20--
x1
BOTTLED WATER MARKET IN INDIA 2013.PPT
Bottled Water – Market Size & Growth
Bottled Water Market – Overview
6
SAMPLE
After successfully capturing urban markets, the players are now keen to establish a foothold in rural India
x2%
x1%
X2
X1 y2%
y1%
Y2
Y1
•Point 1 •Point 2 •Point 3
BOTTLED WATER MARKET IN INDIA 2013.PPT
Market Segmentation – Structure wise(20--) Market Segmentation – Region wise(20--)
7
SAMPLE
Observation
z%
y%
x%
Bottled Water Market – Segmentation (20--)
•Point 1 •Point 2
B
A
C
BOTTLED WATER MARKET IN INDIA 2013.PPT
Segments Brand Coverage Price Range
Segment 1 Brand Coverage 1 Price Range 1
Segment 2 Brand Coverage 2 Price Range 2
Segment 3 Brand Coverage 3 Price Range 3
Key players are inevitably present in all the major segments of the bottled water market in India Market Consolidation
8
SAMPLE Commodity Wise Exports: Volume
Exports – Value and Volume Terms (1/2)
Commodity Wise Exports: Value
INR mn
X
20--
x4
20--
x3
20--
x2
20--
x1
‘000 ltr Y
20--
y4
20--
y3
20--
y2
20--
y1
•Point 1 •Point 2 •Point 3
•Point 1 •Point 2 •Point 3
BOTTLED WATER MARKET IN INDIA 2013.PPT
Note: HS code – A – Mineral Water
9
Exports – Value and Volume Terms (2/2)
Exports: Country Wise Segmentation (Value)
20-- – 20-- 20-- – 20--
20-- – 20-- 20-- – 20--
a7%
a6% a5%
a4%
a3%
a2%
a1%
G1
F1
E1
D1
C1
B1
A1
Exports: Country Wise Segmentation (Volume)
b7% b6%
b5% b4%
b3% b2%
b1% G2
F2
E2
D2
C2
B2
A2
c7% c6%
c5% c4%
c3%
c2%
c1%
G3
F3
E3
D3
C3
B3
A3 d7%
d6% d5%
d4%
d3% d2%
d1% G4
F4
E4
D4
C4
B4
A4
BOTTLED WATER MARKET IN INDIA 2013.PPT
Note: HS code – A – Mineral Water
10
SAMPLE Drivers & Challenges
Drivers
Growth in urbanization and population
Increasing level of health awareness
Bottled water is a rapidly growing and competitive market segment
Rise in income and consumption
Influx of foreign tourists
Water shortage
Challenges
Spurious brands have flooded the bottled water market
Low penetration in rural markets
Possible threat from litigation and public campaigns
Brand and category differentiation
Increasing use of water purifiers
BOTTLED WATER MARKET IN INDIA 2013.PPT
11
SAMPLE
Urban population shows greater inclination towards purchase of bottled water
• Finding 1
• Finding 2
• Finding 3
Impact
Growing Population & Urbanization
bn
y4%
20--e
z4
x4%
20--e
z3
x3%
y3%
20-- 20--
z2
x2%
y2%
z1
x1%
y1%
Rural Population Urban Population.
BOTTLED WATER MARKET IN INDIA 2013.PPT
Growth in urbanization and population
Observation
12
Increasing use of water purifiers and their low costs have created a threat to the sale of packaged drinking water
•Finding 1
•Finding 2
•Finding 3
•Finding 4
BOTTLED WATER MARKET IN INDIA 2013.PPT
Water Purifiers – Growth (Value)
INR bn
X
20--e
x5
20--e
x4
20--e
x3
20--
x2
20--
x1
mn units y5 Y
20--e 20--e
y4
20--e
y3
20--
y2
20--
y1
Water Purifiers – Growth (Volume)
Impact Increasing use of water purifiers
SAMPLE
13
SAMPLE Key trends
`
Flavored drinking water is a top end innovation within the bottled water segment in India
Brand building to give momentum to brand differentiation by consumers
Bottled water brands are trying to capture market share abroad
New entrants from other sectors results in an increase in the number of brands
Institutions continue to be an important channel to reach out to the core masses
Trends
Wide range of packaging formats to target a diverse group of consumers
BOTTLED WATER MARKET IN INDIA 2013.PPT
14
Flavored bottled drinking water is an important value addition to satisfy growing needs of consumers
Flavored drinking water is a top end innovation within the bottled water segment in India
• Finding 1 • Finding 2 • Finding 3 Finding 1 Finding 2 Finding 3
Major competitors
•Brand 1
•Brand 2
•Brand 3
•Brand 4
BOTTLED WATER MARKET IN INDIA 2013.PPT
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SAMPLE Porter’s Five Forces Analysis
Competitive Rivalry • Description
Bargaining Power of Suppliers • Description
Bargaining Power of Buyers • Description
Threat of Substitutes • Description
Threat of New Entrants • Description
Impact Medium to high
Impact High
Impact low
Impact High
Impact High
BOTTLED WATER MARKET IN INDIA 2013.PPT
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SAMPLE Key People
Products and Services
Company Information Offices and Centres – India
India Head Office
Address 1
Tel No. +xx-yy-zzzzzzzz
Website www.xxx.com
Year of Incorporation 19--
Name Designation
Person 1 CEO
Person 2 Managing Director
India Head Office
Category Products/Services
Product Product 1
Mumbai
BOTTLED WATER MARKET IN INDIA 2013.PPT
Public : Domestic Company – Company A (1/5)
17
SAMPLE Financial Snapshot Key Ratios
Financial Summary • The company incurred a net profit of INR x4 mn in FY 20--, as compared to
net Loss x3 of INR mn in FY 20—
• The company reported total income of INR y4 mn in FY 20--, registering an increase of x% over FY 20--
• The company earned an operating margin of z1% in FY 20--, an increase of z2 percentage points over FY 20--
• The company reported a current ratio of r1 in FY 20-- as compared to a current ratio of r2 in FY 20--
Key Financial Performance Indicators
Indicators Value (--/--/20--) Market Capitalization (INR mn) f1 Total Enterprise Value (INR mn) f2 EPS (INR) f3 PE Ratio (Abs) f4
Net Profit/Loss Total Income
0
100
200
300
-150
-100
-50
0
50
INR mn INR mn
20--
y4
x4
20--
y3
x3
20--
y2
x2245.3
20--
y1
x1
Public : Domestic Company – Company A (2/5)
BOTTLED WATER MARKET IN INDIA 2013.PPT
Particulars y-o-y change
(20-----) 20-- 20-- 20-- 20--
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 - - - - -
Improved Decline
18
SAMPLE
Public : Domestic Company – Company A (3/5)
Key Business Segments Key Geographic Segments
x1%
20-- 20--
x2%
India
Business Highlights (1/2)
Description News
Overview • Company Description
yy
Mineral Water
BOTTLED WATER MARKET IN INDIA 2013.PPT
xx
Note: HACCP – Hazard analysis and critical control points; BIS – Bureau of Indian Standards; ISI – Indian Standards Institute
19
SAMPLE
Business Highlights
Description Details
Overview • Company Description
Bottled Water • Bottled Water Description
BOTTLED WATER MARKET IN INDIA 2013.PPT
Public : Domestic Company – Company A (4/5)
20
SAMPLE Public : Domestic Company – Company A (5/5)
• Strength 1 • Strength 2 • Strength 3 • Strength 4
•Weakness 1 •Weakness 2 •Weakness 3
•Threat 1 •Threat 2 •Threat 3 •Threat 4 •Threat 5
•Opportunity 1 •Opportunity 2 •Opportunity 3
T O
W S
BOTTLED WATER MARKET IN INDIA 2013.PPT
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SAMPLE Key Ratios of 3 Major Companies – Operational Basis (FY 20--) (1/3)
Competitive Benchmarking (1/3)
Company C
y3
x3
Company B
y2
x2
Company A
y1
% x1
Net Margin Operating Margin
BOTTLED WATER MARKET IN INDIA 2013.PPT
• Point 1
• Point 2
22
Key People
Products and Services
Company Information Offices and Centres – India
India Head Office Address 1
Tel No. +xx-yy-zzzzzzzz
Website www.yyy.com
Year of Incorporation 19--
Name Designation
Person 1 Chairman and Managing Director
Person 2 Director
Person 3 Director
Category Products/Services
Products
Product 1
Product 2
Product 3
Product 4
BOTTLED WATER MARKET IN INDIA 2013.PPT
Head Office
Mumbai
Private : Domestic Company – Company B (1/5)
23
SAMPLE
Private : Domestic Company – Company B (2/5)
Shareholders of the Company as on --/--/20-- Ownership Structure
Name No. of Shares held
A -
B -
C -
Total -
x3% x2%
20-- 20--
x1%
20--
Directors or relatives of directors
Ownership structure corresponds to Date of AGM: --/--/20--, --/--/20-- and --/--/20--
BOTTLED WATER MARKET IN INDIA 2013.PPT
24
SAMPLE Financial Snapshot Key Ratios
Financial Summary
• Company incurred a net profit of INR x2 mn in FY 20--, as compared to net profit of INR x1 mn in FY 20--
• It reported total Income of INR y2 mn in FY 20--, registering an increase of y% over FY 20--
• It earned an operating margin of z1% in FY 20--, an increase of z percentage points over FY 20--
• The company reported debt to equity ratio of r1% in FY 20--, an increase of r% over FY 20--
Improved Decline
Profit / Loss
Total Income Profit
INR mn Total Income
INR mn
20--
y2
x2
20--
y1
x1
Private: Domestic Company – Company B (3/5)
Particulars y-o-y change
(20-----) 20-- 20-- 20-- 20--
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 - - - - -
BOTTLED WATER MARKET IN INDIA 2013.PPT
25
SAMPLE
Description Details
Overview • Company Description.
Bottled Water • Bottled Water Description
BOTTLED WATER MARKET IN INDIA 2013.PPT
Business Highlights
Private : Domestic Company – Company B (4/5)
26
SAMPLE Private : Domestic Company – Company B (5/5)
• Strength 1 • Strength 2 • Strength 3 • Strength 4
•Weakness 1 •Weakness 2
•Threat 1 •Threat 2 •Threat 3 •Threat 4
•Opportunity 1 •Opportunity 2 •Opportunity 3
T O
W S
BOTTLED WATER MARKET IN INDIA 2013.PPT
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Strategic Recommendations
Recommendation 1
•Point 1
•Point 2
Recommendation 2
•Point 1
Recommendation 3
•Point 1
•Point 2
Recommendation 4
•Point 1
•Point 2
BOTTLED WATER MARKET IN INDIA 2013.PPT
28
Thank you for the attention
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BOTTLED WATER MARKET IN INDIA 2013.PPT