1. Nutraceuticals Market India April 2014

2. 2NUTRACEUTICALS MARKET IN INDIA 2014.PPT Executive Summary Market Drivers & Challenges Trends Competition Market valued at INR x bn in 2011-12 and is estimated to grow at a CAGR of y % over the next six years Comprises three segments, dietary supplements, functional foods and functional beverages India accounts for a mere z% of the total world market for nutraceuticals Drivers: Faulty Lifestyles Leading to related Disorders Increasing Disposable Income Rise in Ageing Population Growing Awareness towards Preventive Care and Self Medication Expanding Sales Channels Ideal Manufacturing Destination Challenges: Lack of Standardization High Product Price Fortified foods Ayurvedic nutraceuticals Foreign tie-ups Initiatives by players to educate consumers Encapsulation Cosmeceuticals and Nanoceuticals Probiotic Market Probiotics in India generally comes in two forms : Drugs and Packaged foods and beverages Major pharmaceuticals companies have become active in this space and are devising newer drugs and products, however current drugs are predominant in the area of gastroenterology Amway India EnterprisesYakult DanoneRanbaxy LaboratoriesAbbott India Herbalife International IndiaHimalaya DrugDr. Reddy's LaboratoriesDabur India Major Private PlayersMajor Public Players 3. 3NUTRACEUTICALS MARKET IN INDIA 2014.PPT Macro Economic Indicators Introduction Market Overview Drivers & Challenges Value Chain Analysis Trends Government Regulations Competitive Landscape Strategic Recommendations Appendix 4. 4 SAMPLE Economic Indicators (1/3) GDP at Factor Cost: Quarterly Inflation Rate: Monthly -2 -1 0 1 2 Aug 20-- - Sep 20-- b2 Jul 20-- - Aug 20-- b1 % Nov 20-- - Dec 20-- b5 Oct 20-- - Nov 20-- b4 Sep 20-- - Oct 20-- b3 11 12 13 14 15 a14 Q1 a1 a5 a9 a13 a7 a11 Q2 a2 a6 a10 INR tn Q4 a4 a8 a12 Q3 a3 2013-14 2011-12 2012-13 2010-11 NUTRACEUTICALS MARKET IN INDIA 2014.PPT 5. 5NUTRACEUTICALS MARKET IN INDIA 2014.PPT Nutraceutical Definition and Segments The term Nutraceutical comes from the words nutrition combined with pharmaceutical, and implies a food or food product that reportedly provides health and medical benefits, including the prevention and treatment of diseases It comprises extracts of food having a medicinal impact on human health and comes in the form of food, dietary supplements, and medical foods Dietary Supplements Functional Foods Functional Beverage xx yy zz 6. 6NUTRACEUTICALS MARKET IN INDIA 2014.PPT Increasing shift towards preventive therapies and increasing disposable income has led to a growing market India accounts for only x% of the world nutraceuticals market Nutraceuticals market in India is growing at a fast pace and is expected to be almost y in size by 20-- Growing consciousness among Indians about health and how they look and feel is resulting in greater demand for product 1, product 2 and product 3 Product 2 segment is witnessing sizeable demand Product 4 will be a rapidly growing category until 20-- followed by dietary supplements Several pharmaceutical companies are entering this space, realizing that nutraceutical products can act as a supplementary product for their y products There is a rising penetration of pharmaceutical companies in nutraceutical segment in the form of x1 and x2 supplements There are more Indian players than multinationals in the market as it is a relatively low technology section compared to pharmaceuticals Product 6 is one of the most emerging and nascent segments in this market with increasing consumer acceptance and greater player attention expected to drive its growth Nutraceuticals Market Overview Market Size and Growth 0 100 200 300 400 INR bn 20--e +x% a6 20--e a5 a3 20--e20-- a7 a1 20--e a4 a2 20-- 20--e Market Segmentation (20--) x2% x1% x3% Segment 3Segment 2Segment 1 7. 7NUTRACEUTICALS MARKET IN INDIA 2014.PPT Drivers & Challenges Summary Drivers Faulty Lifestyles Leading to related Disorders Increasing Disposable Income Rise in Ageing Population Growing Awareness towards Preventive Care and Self Medication Expanding Sales Channels Ideal Manufacturing Destination Challenges Lack of Standardisation High Product Price 8. 8NUTRACEUTICALS MARKET IN INDIA 2014.PPT Faulty Lifestyles Leading to Related Disorders Impact xx Prevalence of Chronic Lifestyle Diseases in India 0 50 100 150 200 250 300 x4 x7 Hypertension x6 Cardiovascular Diseases mn x5 x2 x8 x3 x1 Diabetes Cancer 20-- 20--e Rise in chronic diseases is encouraging people to move towards preventive treatment 9. 9NUTRACEUTICALS MARKET IN INDIA 2014.PPT Nutraceuticals Market Value Chain X1 X7 X4 X2 X5 X6 X3 10. 10 SAMPLE NUTRACEUTICALS MARKET IN INDIA 2014.PPT Trends Summary ` Fortified Foods Ayurvedic Nutraceuticals Cosmeceuticals and Nanoceuticals Encapsulation Trends Foreign Tie-ups Players Educating Consumers 11. 11NUTRACEUTICALS MARKET IN INDIA 2014.PPT Fortified foods are emerging as the new growth segment for the nutraceuticals industry yy Advantages xx Fortified Foods zz Examples 12. 12NUTRACEUTICALS MARKET IN INDIA 2014.PPT Genesis of Food Safety and Standards Act, 20-- xx yy zz Pre 20-- 20-- -20-- Post 20-- Conclusion 13. 13 SAMPLE NUTRACEUTICALS MARKET IN INDIA 2014.PPT Market Competition Porters Five Forces Analysis Bargaining Power of Suppliers Threat of New Entrants Competitive Rivalry Bargaining Power of Buyers Threat of Substitutes Impact Low Impact Low Impact LowImpact Medium Impact Medium 14. 14 Competitive Benchmarking (1/5) Public Trading Comparables (FY 20--) Company A Company B Company C Company D Company E Market Capitalization (INR bn) - Share Price (INR) EV/EBITDA (x) EV/Revenue (x) PE Ratio (04/04/2014) NUTRACEUTICALS MARKET IN INDIA 2014.PPT 15. 15 Key Ratios of Major Public Companies Operational Basis (FY 20--) (1/3) Competitive Benchmarking (2/5) -20 0 20 40 60 80 x8 x7 Company ECompany B x4 Company D x9 x12 x5 x6 x10 x11 % x1 x2 Company A x3 Gross Margin Net MarginOperating Margin xx NUTRACEUTICALS MARKET IN INDIA 2014.PPT SAMPLE 16. 16 Public: Domestic Company Company A (1/4) Key People Products and Services Company Information Offices and Centres India Category Products/Services Segment Product 1, product 2, product 3,. Others Product 1, product 2, product 3 Name Designation Person 1 Designation Person 2 Designation Person 3 Designation Person 4 Designation Head Office Corporate Address Company Address Tel No. +91-xx- yyyyyyyyy Fax No. +91-ww-zzzzzzzz Website www.companyA.com Year of Incorporation 19-- Ticker Symbol ------ Stock Exchange Exchange Name NUTRACEUTICALS MARKET IN INDIA 2014.PPT 17. 17 Financial Snapshot Key Ratios Financial Summary The company earned a net profit of INR x4 mn in FY 20--, as compared to net profit of INR x3 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 p% in FY 20--, a decrease of y percentage points over FY 20-- The company reported debt to equity ratio of q in FY 20--, an increase of r% over FY 20-- Financial Summary Indicators Value Market Capitalization (INR) z1 Total Enterprise Value (INR) z2 EPS (INR) z3 PE Ratio (Absolute) z4 Profit / Loss Total Income 20-- d Profit INR mn f g h Total Income INR mn a b y4 x4 y3 20-- x3 20-- c y2 x2 20-- y1 x1 Public: Domestic Company Company A (2/4) Particulars y-o-y change (20-----) 20-- 20-- 20-- 20-- Profitability Ratios Operating Margin -3.31 7.37% 10.69% 11.63% 14.80% Net Margin -6.73 4.02% 10.75% 12.08% 7.61% Profit Before Tax Margin -5.22 6.52% 11.74% 15.66% 11.00% Return on Equity -7.25 5.51% 12.76% 13.22% 9.02% Return on Capital Employed -2.22 8.50% 10.73% 12.11% 16.70% Return on Working Capital -7.92 20.82% 28.74% 28.25% 56.05% Return on Assets -1.89 6.67% 8.56% 10.77% 14.08% Return on Fixed Assets -4.90 26.02% 30.92% 33.44% 41.15% Cost Ratios Operating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70% Administration costs (% of Sales) 5.78 33.11% 27.33% 22.91% 25.64% Interest costs (% of Sales) -0.24 0.82% 1.06% 1.21% 1.74% Liquidity Ratios Current Ratio 0.43% 2.49 2.48 4.42 2.60 Cash Ratio -14.77% 0.53 0.63 1.76 1.09 Leverage Ratios Debt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02 Debt to Capital Ratio 5.46% 0.24 0.23 0.01 0.02 Interest Coverage Ratio -12.08% 9.10 10.35 10.14 8.78 Efficiency Ratios Fixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69 Asset Turnover 14.00% 0.89 0.78 0.88 0.92 Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26 Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66 Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13 NUTRACEUTICALS MARKET IN INDIA 2014.PPT 18. 18 SAMPLE Key Business Segments Key Geographic Segments Business Highlights (1/2) Description News Overview xx Nutraceutical Products yy Product Launch zz Expansion Plans ww 76% 88% 85% 65% 0% 20% 40% 60% 80% 100% 20-- 13% 2% 19% 20-- 4% 1% 11% 20-- 0% 1% 11% 20-- 3% 21% Segment 4 Segment 3 Segment 2 Segment 1 13% 0% 20% 40% 60% 80% 100% 20-- 5% 95% 20-- 3% 97% 20-- 3% 97% 20-- 87% Country 2Country 1 Public: Domestic Company Company A (3/4) NUTRACEUTICALS MARKET IN INDIA 2014.PPT 19. 19 SAMPLE S W TO Public: Domestic Company Company A (4/4) Opportunity 1 Opportunity 2 Opportunity 3 Threat 1 Threat 2 Threat 3 Strength 1 Strength 2 Strength 3 Weakness 1 Weakness 2 Weakness 3 NUTRACEUTICALS MARKET IN INDIA 2014.PPT 20. 20NUTRACEUTICALS MARKET IN INDIA 2014.PPT Private: Foreign Company Company B (1/5) Key People Company Information Offices and Centres India Corporate Address Company Address Tel No. +91-xx- yyyyyyyyy Fax No. +91-ww-zzzzzzzz Website www.companyA.com Year of Incorporation 20-- Products and Services Head Office Category Products/Services Segment Product 1, product 2, product 3,. Others Product 1, product 2, product 3 Name Designation Person 1 Designation Person 2 Designation Person 3 Designation Person 4 Designation 21. 21 Shareholders of the Company as on xx/yy/20-- Ownership Structure Private: Foreign Company Company B (2/5) Name No. of Shares held Total x% Type 1 NUTRACEUTICALS MARKET IN INDIA 2014.PPT 22. 22 Financial Snapshot Key Ratios Financial Summary The company earned a net profit of INR x4 mn in FY 20--, as compared to net profit of INR x3 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 p% in FY 20--, a decrease of y percentage points over FY 20-- The company reported debt to equity ratio of q in FY 20--, an increase of r% over FY 20-- Profit / Loss Total Income 20-- d Profit INR mn f g h Total Income INR mn a b y4 x4 y3 20-- x3 20-- c y2 x2 20-- y1 x1 Particulars y-o-y change (20-----) 20-- 20-- 20-- 20-- Profitability Ratios Operating Margin -3.31 7.37% 10.69% 11.63% 14.80% Net Margin -6.73 4.02% 10.75% 12.08% 7.61% Profit Before Tax Margin -5.22 6.52% 11.74% 15.66% 11.00% Return on Equity -7.25 5.51% 12.76% 13.22% 9.02% Return on Capital Employed -2.22 8.50% 10.73% 12.11% 16.70% Return on Working Capital -7.92 20.82% 28.74% 28.25% 56.05% Return on Assets -1.89 6.67% 8.56% 10.77% 14.08% Return on Fixed Assets -4.90 26.02% 30.92% 33.44% 41.15% Cost Ratios Operating costs (% of Sales) 3.47 92.50% 89.03% 87.70% 84.70% Administration costs (% of Sales) 5.78 33.11% 27.33% 22.91% 25.64% Interest costs (% of Sales) -0.24 0.82% 1.06% 1.21% 1.74% Liquidity Ratios Current Ratio 0.43% 2.49 2.48 4.42 2.60 Cash Ratio -14.77% 0.53 0.63 1.76 1.09 Leverage Ratios Debt to Equity Ratio 7.22% 0.32 0.30 0.01 0.02 Debt to Capital Ratio 5.46% 0.24 0.23 0.01 0.02 Interest Coverage Ratio -12.08% 9.10 10.35 10.14 8.78 Efficiency Ratios Fixed Asset Turnover 23.09% 3.47 2.82 2.72 2.69 Asset Turnover 14.00% 0.89 0.78 0.88 0.92 Current Asset Turnover 6.29% 1.66 1.56 1.78 2.26 Working Capital Turnover 5.98% 2.78 2.62 2.30 3.66 Capital Employed Turnover 14.65% 1.02 0.89 1.02 1.13 Private: Foreign Company Company B (3/5) NUTRACEUTICALS MARKET IN INDIA 2014.PPT 23. 23NUTRACEUTICALS MARKET IN INDIA 2014.PPT Description News Overview xx Network yy Nutraceutical Products zz Expansion Plans ww Business Highlights Private: Foreign Company Company B (4/5) SAMPLE 24. 24 SAMPLE S W TO Opportunity 1 Opportunity 2 Opportunity 3 Threat 1 Threat 2 Threat 3 Strength 1 Strength 2 Strength 3 Weakness 1 Weakness 2 Weakness 3 Private: Foreign Company Company B (5/5) NUTRACEUTICALS MARKET IN INDIA 2014.PPT 25. 25NUTRACEUTICALS MARKET IN INDIA 2014.PPT Strategies that can help players penetrate deeper into the market ` xx Strategic Recommendations yy zz ww 26. 26 Thank you for the attention About Netscribes, Inc. 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