2
Executive Summary
Market Overview
Drivers & Challenges
Competitive Landscape
Drivers Rising Income Levels
Young Population and Low Penetration
Growth in Organized Retail
Changing Lifestyles and Perceptions
Growing Awareness towards International Brands
Trends
Challenges Presence of Substitutes
Variance in State-level Policies
Advertising Ban on Alcohol
Inconsistent Quality
Key Players
Company A Company B Company C
Company D Company E Company F
Wine industry is one of the growing sectors in India that has attracted a number of players
Increasing disposable income and changing lifestyle have contributed to its rising demand
Sale of wine touched 5.1 mn liters in 2013-14 from 1.31 mn liters in 2007-08
Introduction of New Flavors
Promotional Wine Events
Growing Number of Wine Clubs
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•Macroeconomic Indicators
•Introduction
•Market Overview Global
India
•Market Segmentation
•Export and Import
•Drivers & Challenges
•Trends
•Competitive Landscape
•Consumer Insights
•Strategic Recommendations
•Appendix
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Top 5 countries represent 50% of the world’s vineyard area
Global Wine Market – Overview (1/4)
Vineyard Area – Top 5 Countries in Million Hectares (2013)
mha
Turkey China Italy France Spain
World’s Total Vineyard Surface Area
0
mha
x
2013 2000
• Text
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While the vineyard surface area is decreasing, grape production has been increasing
Global Wine Market – Overview (2/4)
Continental Evolution as % of Global Production (2000 – 2013)
Europe
%
d
b c
a
Africa America Asia
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Growth in World Grapes Production
mql
y
2013 2012
• Text
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80% of world’s wine is produced by 10 countries
Global Wine Market – Overview (3/4)
Top 10 Wine Producing Countries (2014)
Australia
%
Argentina South Africa
France Chile China Italy Germany Spain USA
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Growth in World Wine Production
2014e
x
2013
mhl
• Text
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Increase in global trade over the past 20 years has resulted in a shift in wine consumption patterns
Global Wine Market – Overview (4/4)
Percentage Shift in Wine Consumption Geography
• Text
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Europe
Asia
United States of America
Others
Africa
Europe
Asia
United States of America
Others
Africa
2000 2013
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Wine market in India is witnessing significant growth
Indian Wine Market – Overview (1/3)
Sale of Wine in India (Volume)
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• Text
Sale of Wine in India (Value)
mn Liters
2007-08
x
2013-14
y
2013-14 2007-08
INR bn
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Awareness among farmers has increased manifold, resulting in the cultivation of wine grapes
Indian Wine Market – Overview (3/3)
WINE MARKET IN INDIA 2015.PPT
Grape Growing States – Area (2013-14)
76.3%
Others Karnataka
Maharashtra Tamil Nadu Mizoram
Andhra Pradesh
Grape Growing States – Production (2013-14)
82.5%
Others
Maharashtra
Andhra Pradesh Karnataka
Mizoram Tamil Nadu
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Red wine is the leading segment in the Indian wine market
Indian Wine Market – Segmentation (1/2)
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Indian Wine Consumption – Segmentation (2013)
White Wine Red Wine Rose Wine
Expected Wine Consumption in mn Cases (2017e)
• Text
White Wine Red Wine
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Impact
Booming retail sector provides opportunity for players to distribute their products efficiently
Growth in Organized Retail
• Text
Growth in Share of Organised Retail in India
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Unorganized Retail
Organized Retail
2011-12 2016-17e
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Variance in state level policies and expensive tax structure poses a huge challenge for players
Variance in State-level Policies
• Text
Impact
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Percent of Total Tax Cost in the Final Cost in Different States (2013)
Maharashtra Karnataka Goa Punjab Rajasthan
%
West Bengal
Delhi Andhra Pradesh
Tamil Nadu
Kerala
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Porter’s Five Forces Analysis
Competitive Rivalry
• Text
Bargaining Power of Suppliers
• Text
Bargaining Power of Buyers
• Text
Threat of Substitutes ‘
• Text
Threat of New Entrants
• Text
Impact High
Impact Low
Impact Low
Impact High
Impact Medium
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Key People
Products and Services
Company Information Offices and Centres – India
Corporate Headquarter
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category Products/Services
Wine Name Designation
Public: Foreign Company – ABC (1/5)
Head Office
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Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net loss of INR mn in FY 2014, as compared to net loss of INR mn in FY 2013
• The company reported total income of INR mn in FY 2014, registering an increase of over FY 2013
• The company earned an operating margin of in FY 2014, a decrease of percentage points over FY 2013
• The company reported debt to equity ratio of in FY 2014, an increase of percentage points over FY 2013
Key Financial Performance Indicators
Indicators Value (21/11/2014)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Improved Decline
Net Profit/Loss Total Income
-60,000
-40,000
-20,000
0
20,000
0
2013 2012
INR mn
2011
INR mn
2014
Particulars y-o-y change
(2014-13) 2014 2013 2012 2011
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
Public: Foreign Company – ABC (2/5)
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Key Business Segments Key Geographic Segments
%
2014
Manufacture, Purchase and Sale of Beverage Alcohol
%
2012 2011 2014 2013
India Outside India
Public: Foreign Company – ABC (3/5)
The company has been in this sector for the last four years
Business Highlights (1/2)
Description News
Overview •Text
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Public: Foreign Company – ABC (4/5)
Business Highlights (2/2) Description News
Brands • Text
Global Presence • Text
Distribution • Text
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Public: Foreign Company – ABC– SWOT Analysis (5/5)
• Text • Text
• Text
• Text
T O
W S
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Private: Domestic Company – ABC (1/5)
Key People
Products and Services
Company Information Offices and Centers – India
Name Designation
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Category Products/Services
Wine
Head Office
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Ownership Structure
Name No. of Shares held
Total
Ownership structure corresponds to Date of AGM: 30/09/2013
Shareholders of the Company
Foreign holdings
Bodies corporate
Other top fifty shareholders
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Private: Domestic Company – ABC (2/5)
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Financial Snapshot Key Ratios
Particulars y-o-y change
(2014-13) 2014 2013 2012 2011
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
Private: Domestic Company – ABC (3/5)
Improved Decline
Financial Summary
• The company earned a net loss of INR mn in FY 2014, as
compared to net profit of INR mn in FY 2013
• The company reported total income of INR mn in FY 2014,
registering an increase of over FY 2013
• The company earned an operating margin of in FY 2014, an
decrease of percentage points over FY 2013
• The company reported debt equity ratio of in FY 2014, a
decrease of over FY 2013
50
0
100
150
INR mn INR mn
2014 2013 2012 2011
Net Profit/Loss Total Income
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Business Highlights
Private: Domestic Company – ABC (4/5)
Description News
Overview • Text
Vineyard • Text
Partnerships • Text
International Distributors • Text
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Private: Domestic Company – ABC – SWOT Analysis (5/5)
• Text • Text
• Text • Text
T O
W S
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Consumer Insights on Wine (2/4)
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Gender Wise Age Split Gender Wise Age Split – Male
31-35
26-30
36 and above
18-25 Male
Female
Gender Wise Age Split – Female Age Wise Purchasing Power – 18-25
Less than INR 500
INR 1,000-1,500
INR 1,500-2,000
>INR 2,000
INR 500-1,000 36 and above
31-35
26-30
18-25
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Consumer Insights on Wine (3/4)
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Age Wise Purchasing Power – 26-30 Age Wise Purchasing Power – 31-35
>INR 2,000
INR 1,500-2,000
INR 500-1,000
INR 1,000-1,500
>INR 2,000
INR 500-1,000
INR 1,500-2,000
Less than INR 500
INR 1,000-1,500
Age Wise Purchasing Power – 36 and Above Type Wise Popularity
Rose Wine
Sparkling Wine
White wine
Red wine
others
>INR 2,000
INR 500-1,000
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Consumer Insights on Wine (4/4)
Other Insights
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• Text
• Text
• Text
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Strategic Recommendations
Government Support
• Text
Development of Infrastructure
• Text
Partnership within the Community
• Text
Preservation of a Healthy Environment
• Text
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WINE MARKET IN INDIA 2015.PPT