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Retail Sector India
December 2013
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Table of Contents
I. Retail Sector Overview
1. Retail Sector Highlights
2. Main Sector Indicators
3. Retail Sector Snapshot
4. FMCG Market Snapshot
5. Number and Size of Stores in India
6. Indian Retail in Global Rankings
7. Major Players by Retail Format
8. Retail Sector Forecast
9. Retail Sector Forecast (cont’d)
10.Indian Population and the Retail Market
11.New Rules for FDI in Multi-Brand Retail
12.Government Policy
13.Government Policy (cont’d)
14.Employment
15.Retail Sector SWOT Analysis
II. Food & Beverages
1. Packaged Food Market
2. Ready-to-Eat Market
3. Confectionery Highlights
4. Bread
5. Semi-Processed Food Market
6. Frozen Processed Food and Ready Meals
7. Milk and Cheese
8. Beverage and Cigarette Highlights
9. Alcoholic Beverage Data
10.Beer and Cigarette Data
11.Soft Drink and Bottled Water Highlights
12.Soft Drinks and Bottled Water
III.Personal Hygiene and Care, Detergents
1. Personal Hygiene Highlights
2. Personal Hygiene Market
3. Personal Hygiene Market Forecast
4. Personal Care Highlights
5. Skincare
6. Color Cosmetics
7. Natural Cosmetics and Fragrance
8. Dishwashing and Laundry Care
IV. Apparel and Footwear
1. Apparel Market
2. Apparel Market (cont’d)
3. Athletic Apparel and Footwear
4. Other Apparel
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Table of Contents
V. Consumer Durables
1. Consumer Electronics and Home Appliances – SWOT
Analysis
2. Consumer Durables Snapshot
3. White Goods
4. Brown Goods
5. Consumer Electronics
6. Consumer Durable Financing in India
VI. Other Segments
1. Pharmaceuticals
2. Motor Vehicles
3. Luxury Goods
VII. E-Commerce (B2C)
1. E-Commerce Highlights
2. E-Commerce in India Snapshot
3. E-Tailing Data
4. E-Commerce – Ecosystem and Challenges
VIII. Major Players
1. Top M&A Deals
2. Bharti Retail Pvt. Ltd.
3. Carrefour Wholesale Cash&Carry India Pvt. Ltd.
4. TESCO/Trent
5. IKEA
6. Future Retail Ltd.
7. Reliance Retail
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I. Retail Sector Overview
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report have been presented as provided by the source.
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Retail Sector Highlights
In FY 2012, organized retail represented some 8% of the USD 430 bn Indian retail industry, CRISIL said in Sep 2012. The total retail sector accounted
for some 25% of GDP, while organized retail contributed some 2%, Technopak figures showed. The food and grocery segment accounted for more
than half of the retail market, but claimed organized retail sales of between 2% (CRISIL) and 11% (Deloitte). The retail sector is one of the biggest
employers in India with a nearly 24-million workforce, Technopak said. The country was the world’s 12th-largest consumer durables market in FY
2012 and is forecast to rank fifth-largest by FY 2025, IBEF said in Aug 2013.
Importance of Retail
FDI Policy
Challenges
Way Ahead
In Aug 2013, the Indian government relaxed the rules for Foreign Direct Investment (FDI) in multi-brand retail in an attempt to woo investors, as no
foreign multi-brand retailer has set up shop in India since 51% FDI in multi-brand retail was first permitted in the country in Sep 2012. FDI in multi-
brand retail is a state subject and as per the policy, e-commerce is not allowed as an alternate channel as it can serve the customer beyond the
physical location of the store, Deloitte India commented. Political changes in the state and central governments and the USD/INR currency
fluctuation pose risks to foreign investment in retail in India.
States in India differ in terms of culture, language, socio-economic development and spending power, so international retailers would need to
customize their offerings to suit regional tastes, Deloitte India said. The choice of real estate suitable for large retail operations is very limited, which
will be a major challenge to the corporatized retail’s ability to grow, Technopak pointed out. Real estate limitations may also give a boost to informal
retail channels. To meet the FDI policy guidelines on sourcing and improve margins, foreign retailers would need to work with local manufacturers
to create India-specific private label brands.
Domestic retailers should focus on expanding their footprint not only in metropolitan areas, but also in towns with population of less than one
million. Although foreign retailers have been allowed to operate in smaller cities since Aug 2013, they may reasonably be expected to prefer larger
ones, leaving smaller urban and rural areas to domestic companies. While foreign retailers hunt for suitable retail spaces, domestic ones can apply
accommodation flexibility and use their exclusive insight into the Indian consumption patterns to gain an edge over their global competitors. Issues
that both local and foreign retailers will face include transportation and electricity supply challenges as well as finding skilled manpower.
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Source:
Comments
Main Sector Indicators
India is home to approximately 15 million shops, the majority of which are run as standalone entities owned and operated by members of the same family.
Employment in this segment, referred to as independent retail, averages 1.5 employees per shop. These employees have no social security and no say on
working conditions and wages, Technopak commented in an Oct 2012 paper on FDI in the Indian retail sector. Independent retail is expected to create
more than nine million jobs over the next decade. Therefore, a labor policy that manages to bring this large informal workforce in an environment of formal
employment is much needed.
Main Retail Sector Indicators
Technopak Analysis
FY 2001 FY 2012 FY 2021
National GDP, USD bn 450 1,958 3,310
Estimated Merchandise Consumption (Retail Market Opportunity), USD bn 120 490 810
Urban consumption (% and value) 40% (USD 48 bn) 48% (USD 235 bn) 56% (USD 455 bn)
Rural consumption (% and value) 60% (USD 72 bn) 52% (USD 255 bn) 44% (USD 355 bn)
Share of Corporatized (Organized) Retail ~4% ~7% ~20%
Share of Independent Retail 96% 93% 80%
Size of Corporatized (Organized) Retail, USD bn 5 34 162
Size Of Independent Retail (USD bn) 115 455 648
Share of Indian Corporatized Retailers in Total Corporatized Retail ~100% ~95% 50%
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Source:
Retail Sector Snapshot
India's Retail Sector, FY 2012
FMCG Market Break-Down by Product, FY 2013
India's Organized Retail Sector, FY 2012
FDI in FMCG, FY 2001-FY 2013, USD mn
Deloitte Jan 2013; Images Group; Reuters; D&B FMCG Sector, Aug 2013; IBEF; DIPP; Aranca Research;
Food and Grocery 60%
Apparel 8% Mobile and Telecom 6%
Food Service 5%
Jewelry 4%
Consumer Electronics 3%
Pharmacy 3%
Others 11%
Size of Indian Retail Sector, 2012:
USD 430 bn (CRISIL)
USD 490 bn (Technopak)
Apparel 33%
Mobile and Telecom 11%
Food Service 7%
Jewelry 6%
Consumer Electronics 8%
Others 24%
Food and Grocery 11%
Pie chart shows both
organized and unorganized
segments
Food and Beverages 53%
Personal Care 20%
Tobacco 15%
Household Consumables 10%
Others 2%
95.4 101.2
384.9
632.4
865.5
1,811.10
2.45% 2.60%
9.89%
16.25%
22.25%
46.60%
0%5%10%15%20%25%30%35%40%45%50%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
RetailTrading
Tea, Coffee VegetableOil
Soaps,Cosmetics
Paper, Pulp FoodProcessing
FDI in FMCG, FY 2001-FY 2013, USD mn % of Total FDI in FMCG
Size of Organized
Retail, FY 2012:
USD 34 bn
(Technopak)
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Source:
FMCG Market Snapshot
Indian FMCG Market Size
Top FMCG Players in India (Based on FY 2012 Earnings)
Exports and Imports of FMCG
Total Distribution Reach of FMCG Players
D&B FMCG Sector, Aug 2013; EM Insight calculations; Tata Securities Research;
1,012
1,177
1,395 1,539
1,766
16.3%
18.5%
10.3%
14.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Indian FMCG Market Size, INR bn % y/y growth
27.1 30 37.2
49.3 61.3
51.6 51.6 59.8
84.3
121.2
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
FMCG Imports, INR bn FMCG Exports, INR bn
ITC Ltd. 22.88%
Ruchi Soya Industries Ltd.
16.92%
Hindustan Unilever Ltd.
15.06%
Nestle India Ltd. 5.00%
Nirma Ltd. 4.44%
Others 35.70%
2.9
2.5
2.8
2.6
4.6
3.3
3.9
1.5
3.6
6.3
Jyothy Labs
ITC
Dabur
Emami
Colgate
Marico
GCPL
GSK
Nestle
HUL
Total Distribution Reach of FMCG Players, million outlets
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Source:
Number and Size of Stores in India
Number and Average Size of Stores in India
Number of Stores byType
Share in Total Space by Store Types, %
livemint.com (based on forecasts by Boston Consulting Group, Ernst and Young Pvt. Ltd., Deloitte Haskins and Sells, KPMG Advisory
Services Pvt. Ltd., Technopak Advisors Pvt. Ltd. and Booz and Co.)
100 500
10,000
500 50 40 2 400 1,500
30,000
4,000 600 300 30 2,000 4,000
50,000
8,500
1,400 1,000 200
Convenience Stores Discount Stores Specialty Stores/EBOs Supermarkets Department Stores Hypermarkets Cash & Carry
2006 2011 2016 F
700
1,000
1,500
2,000
30,000
50,000
70,000
Convenience Stores
Discount Stores
Specialty Stores/EBOs
Supermarkets
Department Stores
Hypermarkets
Cash & Carry
Average Size of Stores in India, 2011, sq ft
11,192
36,830
67,100
2006 2011 2016 F
Total Number of Stores in India1% 2% 7%
10% 17%
25% 7%
20%
21% 5%
9%
8% 75%
50% 37%
2% 2% 2%
0.3% 1%
0%
20%
40%
60%
80%
100%
120%
2006 2011 2016 F
ConvenienceStores
Discount Stores
SpecialtyStores/EBOs
Supermarkets
DepartmentStores
Hypermarkets
Cash & Carry
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Source:
Indian Retail in Global Rankings
India's GRDI Score, 2013
How India Compares to Other Markets - A.T. Kearney's Global Retail Development Index (GRDI), 2013
Retail Real Estate Momentum Index, Global Top 20 Markets
The 2013 Global Retail Development Index 2013 by A.T.Kearney; Jones Lang LaSalle 2012;
100.0%
95.6%
95.8%
92.0%
77.5%
62.1%
36.8%
36.6%
17.7%
52.9%
Brazil
Chile
UAE
Uruguay
Oman
China
India
Georgia
Mongolia
Peru
Market Attractiveness, %
86.2%
100.0%
94.6%
73.9%
97.8%
67.9%
59.4%
63.8%
37.0%
60.4%
Brazil
Chile
UAE
Uruguay
Oman
China
India
Georgia
Mongolia
Peru
Country Risk, %
43.3%
18.7%
3.0%
63.5%
11.3%
34.3%
63.3%
83.4%
99.0%
63.4%
Brazil
Chile
UAE
Uruguay
Oman
China
India
Georgia
Mongolia
Peru
Market Saturation, %
Country GRDI Score 2013 Change in Rank
Compared to 2012
Brazil 69.5% -
Chile 67.1% -
UAE 63.5% +2
Uruguay 66.5% +1
Oman 53.9% -9
China 66.1% -1
India 55% -9
Georgia 61.4% -2
Mongolia 62.5% +2
Peru 56.5% -2
China
India
Indonesia, Turkey
Brazil, Vietnam
Peru, Thailand, Russia
Kazakhstan, Malaysia, Chile
Ukraine, Morocco, Saudi Arabia
Poland, Mexico, Philippines, Colombia
Based on growth
projections of total
population, urban
population, GDP,
GDP/capita, retail
sales and modern
shopping center
stock, combined with
real estate investment
and international
retailer presence.
Source: Jones Lang
LaSalle, Aug 2012
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Source:
Major Players by Retail Format
Organized Convenience Store Market in India
Mixed Retailers in India, FY 2012
Grocery retailers in India, FY 2012
Electronics (l) and Apparel (r) Specialist Retailers, FY 2012
Netscribes report of June 2012; Passport by Euromonitor International;
Electronics and
Appliance Specialist
Retailers
Market Share, FY 2012 Apparel Specialist
Retailers
Market Share, FY
2012
LG Electronics India 3.2% Raymond 0.5%
Infiniti Retail 2.8% Bata India 0.5%
Next India Retail 2.5% Reebok India 0.4%
MobileStore 2.2% Aditya Birla Nuvo 0.4%
Vijay Sales 2.1% Benetton India 0.3%
Samsung India Electronics 1.7% Adidas India Marketing 0.2%
Pantaloon Retail India 1.5% Levi Strauss India 0.2%
Others 84.1% Others 97.5%
Shopper's Stop 20%
Lifestyle International
19.90%
Pantaloon Retail India 16%
Airplaza Retail Holdings 8.80%
Trent 6.90%
Fabindia Overseas 6.90%
Reliance Retail 6.20%
Others 15.20%
90
112.5
139.8 173.3
214.1
25.00%
24.27%
23.96%
23.54%
23%
23%
24%
24%
25%
25%
26%
0
50
100
150
200
250
FY 2011 FY 2012 Est. FY 2013 F FY 2014 F FY 2015 F
Organized Convenience Store Market in India, INR bn % y/y change
Company Name Market Share, FY 2012
Future Value Retail Ltd. 0.50%
Reliance Retail Ltd. 0.30%
Mother Dairy Fruit & Vegetable Pvt. Ltd. 0.10%
Others 99.00%
Number of outlets - 12 million in 2012
The convenience
store market
accounted for 7.4% of
the total organized
retail market in India
in FY 2011.
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Source:
Retail Sector Forecast
Organized Retail Forecast
Organized Retail Sales Projections for 2015, USD bn
Indian Retail Market Forecast
dartconsulting.co.in; Sunstone Business Review, FICCI, Technopak, Business World, RIL Annual Report, Forrester; Booz & Company Analysis;
Organized
Retail
USD 100 bn
Total Retail in
2015:
USD 665 bn
Food and Groceries 35.4
Apparel 19
Footwear 7 Consumer Electronics 22.7
Home 3.8
Jewelry and Watches 7
Pharmacy and Wellness 3.3
Books, Music and Entertainment 1.3
Total Organized
Retail in 2015:
USD 100 bn
Unorganized
Retail
USD 565 bn
8% 10% 12% 15%
92% 90% 88% 85%
0%
20%
40%
60%
80%
100%
120%
2012 2013 F 2014 F 2015 F
UnorganizedRetail, %
OrganizedRetail, %
0.6 9 70
12 26 84
200 270
470
675
850
2006 2011 2016 Est. 2020 Est.
E-Tailing, USD bn Organized Retail, USD bn Total Indian Retail, USD bn
Source: Booz & Company Analysis
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Retail Sector Forecast (cont’d)
FMCG Market Size Forecast
Consumer Durables Market in India - Forecast
Rural FMCG Market Size Forecast
Consumption Expenditure Forecast
D&B FMCG Sector, Aug 2013; India Brand Equity Foundation (IBEF);
1,53
9
1,76
6
1,99
5 2,25
7 2,56
0
10.3%
14.8%
13.0% 13.1% 13.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
500
1,000
1,500
2,000
2,500
3,000
FY 2012 FY 2013 FY 2014 F FY 2015 F FY 2016 F
FMCG Market Size Forecast, INR bn % y/y change
7.3
12.5
FY 2012 FY 2015 Est.
Consumer Durables Market in India, USD bn
India was the world’s 12th-largest consumer durables
market in FY 2012 and is forecast to rank fifth-largest by
FY 2025, IBEF said in Aug 2013.
12
100
FY 2011 FY 2025
Rural FMCG Market Forecast, USD bn
991
2,020
FY 2010 FY 2020
Consumption Expenditure, USD bn
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Source:
Indian Population and the Retail Market
Rising Incomes Will Change India’s Social Structure
India's Population and the Retail Market
McKinsey Global Institute; NCAER, CSSO, TSMG Analysis;
2015 2025 2015 2025 2015 2025
Household Income
Brackets, Annual (thou
INR)
Number of Households,
mn
Number of Households,
mn
Aggregate Disposable
Income, INR tn
Aggregate Disposable
Income, INR tn
Aggregate Consumption,
INR tn
Aggregate Consumption,
INR tn
Globals (>1,000) 3.3 9.5 6.3 21.7 4.1 14.1
Strivers (500-1,000) 5.5 33.1 3.8 20.9 2.7 16.5
Seekers (200-500) 55.1 94.9 15.2 30.6 11.8 24.6
Aspirers (90-200) 106 93.1 14.6 13.7 12.2 11.9
Deprived (<90) 74.1 49.9 3.8 2.6 3.3 2.4
Middle
Class
Population 2001,
million people
Population 2015
(Est.),
million people
Metros and Mini-Metros, 8 cities 67 130
Top Cities (Population > 1 million), 27 cities 37 72
Large Cities (Population: 0.5-1 million), 32 cities 24 45
Rest of India, 5,500 towns + 600,000 villages 874 1,153
Source: NCAER, CSSO, TSMG Analysis
77% 73% 70% 58%
2% 3% 3%
4%
6% 6% 7%
10%
15% 18% 20%
28%
0%
20%
40%
60%
80%
100%
120%
2004 2010 2015 F 2025 F
Metros and Mini-Metros
Top Cities
Large Cities
Rest of India
% Population Living in:
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Source:
New Rules for FDI in Multi-Brand Retail
More Cities
In Sep 2012, the government allowed 51% FDI in multi-brand retail. Before 2012, FDI in multi-brand retail was prohibited in India. As of
Aug 2013, foreign multi-brand retailers are allowed to open stores in cities with a population of less than 1.0 million. A year ago,
foreign investors were allowed to set up stores only in cities with a population of more than 1.0 million, which actually amounted to 53
cities.
Better
Sourcing
Options
Multi-brand retailers can now source at least 30% of their manufactured and processed goods from local micro, small and medium
enterprises with a total plant and machinery investment of USD 2.0 million, instead of USD 1.0 million, as allowed in Sep 2012.
Sourcing can continue even after the companies’ USD 2.0 million investment cap has been reached. Retailers have also been allowed
to buy from farmers’ and agriculture co-operatives, which will be counted in the sourcing requirement. Sourcing norms will have to be
met over a five-year period.
Back-End
Infrastructure
Unchanged from the Sep 2012 regulations, foreign retailers have to invest at least USD100mn and put at least half of that in back-end
infrastructure, such as cold storage and warehouse facilities within three years. Retailers will make subsequent investment in back-end
infrastructure as needed. The policy does not specify whether the initial investment in back-end infrastructure needs to be a fresh one
or can be a stake purchase in an already existing establishment, Deloitte India commented.
In Aug 2013, the Indian government relaxed the rules for Foreign Direct Investment (FDI) in multi-brand retail, as part of a simplification to FDI regulations
for nearly a dozen sectors, The Times of India reported on Aug 2, 2013. The step is the government’s latest attempt to woo investors, as no foreign multi-
brand retailer has set up shop in India since 51% FDI in multi-brand retail was first permitted in the country in Sep 2012.
The Times of India; AT Kearney; Deloitte India;
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Source:
Government Policy
Economic
Liberalization
of 1991
Government
Bodies
Major Players
Operate
Despite
Restrictions
Until 1991, all Indian governments followed protectionist policies that were influenced
by socialist economies. A balance of payments crisis in 1991 forced India to liberalize
its economy. The country joined the WTO in 1995, and, as part of the liberalization
process, has been slowly opening its retail sector to FDI through a series of steps.
The first was the permission of 100% FDI in cash-and carry (wholesale) in 1997. The
regulatory regime was eased up in 2006.
Foreign Investment in India is regulated by the Foreign Exchange Management Act
(FEMA) and the Foreign Exchange Management Regulations issued by the
Reserve Bank of India (RBI). The Ministry of Commerce and Industry is the key
government body in charge of implementing the FDI policy. Official communications
regarding the FDI policy are issued by the Secretariat of Industrial Assistance at
the Department of Industrial Policy and Promotion (DIPP).
Global retailers have been operating for years in India, under legal forms including
franchise agreements (Pizza Hut, Lacoste), cash-and-carry wholesale trading (Metro),
strategic licensing agreements (Mango, Starbucks) and manufacturing wholly-owned
subsidiaries (Nike, Reebok). The latter are treated as Indian companies and are
allowed to retail. Standalone boutiques (Christian Louboutin, Roberto Cavalli) have
opened since 100% FDI in single-brand retail has been allowed. The government
approved a total 18 FDI proposals in single-brand retail worth USD 173 mn between
Apr 2010 and May 2013, The Hindu reported on Aug 20, 2013.
What Keeps Investors Away
Only 11 States of India’s 28,
have approved FDI in multi-
brand retail, which means a
significant part of the country
is out of bounds for global
companies, keen on a pan-
India footprint.
There is no central agency for
a single-window clearance for
the approvals and licenses
required to start a retail
business in India. Chasing
multiple central and state
government agencies may
result in project delays and
cost overruns.
The discretionary power of
states to approve retail
projects results in uncertainty,
as states may impose
additional conditions.
Corporate Catalyst India; Legal India; AT Kearney; The Hindu; The Hindu Business Line; PWC India;
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Source:
Government Policy (cont’d)
Why Let
Global
Supermarket
Operators
In
The government has claimed that FDI in multi-brand retail will create 10 million new jobs without impacting existing employment in
the unorganized retail sector, and will help keep food-based inflation down. In addition, more organized retail will mean easier and
higher tax collection. Foreign multi-brand retail companies are expected to help develop supply chain and logistics, thus
contributing to higher employment and tax collection from companies in these sectors.
Foreign supply-chain best practices will reduce India’s high food wastage levels (at some 24-40%). Food quality and safety will be
improved. Foreign multi-brand retail chains will reduce the number of intermediaries between producers and retailers. This will lead
to higher prices paid to producers and a more regular flow of income. Greater variety of products and more competitive prices will
be available. Brand-conscious Indians shopping abroad could spend the same money at home.
Micro, small and medium retail businesses suffer from lack of branding and possibilities to reach out to world markets. By allowing
foreign retailers in, some could develop by signing franchise agreements for their neighborhood formats. Unorganized retail stores
can buy their merchandise from wholesale retailers, eliminating middle men and benefiting from bulk discounts. The prestige of
Indian products will increase as they will become more similar in design and qualities to their Western counterparts.
The Goods
and Service
Tax
(GST)
The Goods and Service Tax (GST) has been proposed in 2009, but as of Sept 2013 has not been adopted as India’s single
national tax rate. GST is expected to improve tax collection and simplify trade across India by replacing the multiple (state and
national) taxation currently existing in India.
Under GST, both central and state taxes will be collected at the point of sale and will be charged on the manufacturing cost. The taxation
burden will be divided equitably between manufacturing and services through a lower tax rate by increasing the tax base and
minimizing exemptions.
GST is expected to improve cash flows, lower input costs and boost profitability of both manufacturers and traders. It may also lead
to a re-evaluation of procurement and distribution agreements.
The planned tax refunds on goods purchased for resale will significantly reduce the inventory costs of distribution.
Confederation of All Indian Traders; Corporate Catalyst India; Legal India; IBEF;
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Source:
Employment
Employment in Retail in India
Current and Projected Employment in E-tailing
Direct Employment in E-Tailing, Last Mile Delivery
Technopak Analysis (FDI in Retail, Oct 2012; E-Tailing in India, May 2013);
18
22
31
5
34
162
2001
2012
2021 F
No. of Direct Employees in Corporatized (Organized) Retail, million people
No. of Direct Employees in Independent Retail, million people
10,600
954,000
2012 2021 F
Direct Employment in E-Tailing
12,500
5,000
3,500
2,500
0
5,000
10,000
15,000
20,000
25,000
2012
Others (Customer CareEmployees, Merchandizers,HR, Finance, etc.)
Technology
Warehousing
Logistics
100,000
300,000
250,000
800,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2021 F
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Copyright © 2014 EMIS, all rights reserved.
.
…
Source:
Retail Sector SWOT Analysis
India is one of the fastest-growing consumer markets in the world. By
2025, it is estimated to grow four times to become the fifth-largest
globally. Urban India will account for roughly 70% of the consumption
growth, while rural India will grow 32% by 2025. The majority of the
FMCG categories are growing faster in rural areas than in urban,
suggesting that rural markets contain many untapped opportunities.
India is very diverse both culturally and economically, so products
catering to various consumer needs can be potentially successful there.
The market is very fragmented and largely price-driven. The condition
of the road network affects supply chain efficiency. Food wastage due
to transportation and storage problems is very high. In rural India,
regular power supply is not a certainty and the character of purchases
is seasonal. Cultural idiosyncrasies affect perception and sales of
certain products. Skilled personnel is hard to find. The choice of real
estate suitable for large retail operations is very limited.
Rising inflation has an adverse effect on consumer spending. Heavy
taxation, varying from state to state, curbs business activities. Price
competition among retailers puts downward pressure on margins. India
seems not as well positioned as other Southern and South-East Asian
economies to take up moving global business. Political changes in the
state and central governments and the USD/INR currency fluctuation
poses risks to foreign investment in retail in India.
Consumption in India will continue to grow regardless of the general
pace of the economy. Rising disposable incomes have resulted in
higher levels of discretionary spending and aspirational shopping. TV,
the Internet and other media help raise consumer awareness and the
desirability of the latest lifestyle trends and brands. Young, working-age
people are the majority of the Indian population, which promises
dynamic consumer behavior and eager response to new product
launches and product innovation.
SWOT
Analysis
Strengths Opportunities
Weaknesses Threats
PWC; McKinsey Global Institute; IBEF; company annual reports;
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Copyright © 2014 EMIS, all rights reserved.
II. Food & Beverages
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report have been presented as provided by the source.
- 21 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Packaged Food Market
Packaged Food Market Size
Urban/Rural Packaged Food Market Segmentation
Packaged Food Market Segmentation by Type
Packaged Food Market Segmentation by Region
Ken Research; EM Insight calculations;
4,618.50 5,374.60
6,228.30
7,190.80
8,215.20
9,434.10
16.5% 16.4%
15.9%
15.5%
14.3%
14.8%
13%
14%
14%
15%
15%
16%
16%
17%
17%
0
2,000
4,000
6,000
8,000
10,000
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Packaged Food Market Size, USD mn % y/y change
92.0% 91.4% 90.9% 91.0% 90.0% 89.4%
8.0% 8.6% 9.1% 9.0% 10.0% 10.6%
84%
86%
88%
90%
92%
94%
96%
98%
100%
102%
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Semi-Processed,%
Ready-to-Eat, %
76.7% 77.1% 77.8% 78.3% 79.1%
23.3% 22.9% 22.2% 21.7% 20.9%
0%
20%
40%
60%
80%
100%
120%
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
RuralMarket, %
UrbanMarket, % 33.0% 32.6% 32.8%
28.0% 28.8% 29.1%
21.0% 20.9% 20.6%
18.0% 17.7% 17.5%
0%
20%
40%
60%
80%
100%
120%
FY 2011 FY 2012 FY 2013
East
South
West
North
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Copyright © 2014 EMIS, all rights reserved.
Source:
Ready-to-Eat Market
Ready-to-Eat Market Segmentation
Confectionery Sales by Value
Biscuit, Cracker Market Share by Sales Value (Apr-Sep 2012)
Ice Cream Market Segmentation (publ. Mar 2012)
Ken Research; Indian Biscuits Manufacturers’ Association; The Economic Times; BMI; CIER
50.5% 48.5% 48.4% 44.6% 42.8%
24.1% 24.2% 23.7% 24.9% 24.8%
16.6% 18.7% 19.7% 21.8% 23.5%
8.8% 8.6% 8.2% 8.7% 8.9%
0%
20%
40%
60%
80%
100%
120%
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Ice Cream
Snacks
Confectionaries
Bakery
5,663.9 6,542.1 7,397.8 8,430.40
Total Market Size,
USD mn
23,329 27,084 30,395
31,753 36,619
40,784
23,329 26,691
29,676
FY 2010 FY 2011 FY 2012
Chocolate Sales, INR mn Sugar Confectionery Sales, INR mn Gum Sales, INR mn
78,409.70
100,854.70 90,393.90
Glucose 19%
Cookies 26%
Cream Biscuits 22%
Marie 11%
Non-Salt Crackers 9%
Salt Crackers 6%
Others 6%
by City Non-
Metropolitan
Cities 35%
Six Major
Metropolitan
Cities 65%
by Type of Product:
Branded
48%
Unbranded
52%
4,910.8
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Copyright © 2014 EMIS, all rights reserved.
Confectionery Highlights
Overview
The Indian confectionery market was estimated at nearly INR 101 bn in 2012 (BMI) and according to research and market
intelligence company Netscribes is expected to grow at a CAGR of 10.8% from 2012 onwards. Demand and consumption are
almost at par in rural and urban India, with rural consumers being more sensitive to price and urban ones to product variety.
Unlike in other countries, mono- and not multi-packs of confectionery are preferred in India. Manufacturers often employ
different promotional and advertising campaigns, as well as different size packaging and flavors, to lure urban and rural
consumers into buying.
Players
Low-priced products are distributed through the unorganized channel, while medium-priced and premium products are mostly
sold by organized retailers. Organized manufacturers mainly comprise the Indian branches of multinational companies, but
domestic players are also present. India’s top confectionery manufacturers include Nestle India Ltd., Cadbury India Ltd., Perfetti
Van Melle India Ltd., Candico Ltd., ITC Ltd. and Wrigley India Pvt. Ltd. Some 30% and 10% of chocolate and chewing gum
manufacturers, respectively, belong to the unorganized sector. The chocolate market in the country is 90% dominated by
multinational companies Cadbury and Nestle. Premium chocolates are mostly imported and some 70% of annual chocolate
sales are made in urban areas.
Imports,
Exports
Some 39.1% of India’s sugar confectionery imports came from Indonesia and China in 2011, Netscribes said in a Nov 2012
report. Some 79.6% of block chocolate imports came from Malaysia and Singapore, and 75.4% of chewing gum imports were
from China and the UAE in 2011. Some 56.6% of India’s chewing gum exports were to the United Arab Emirates and 64.3% of
block chocolate exports were shipped to Bhutan and Uzbekistan in 2011, Netscribes added.
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Copyright © 2014 EMIS, all rights reserved.
Source:
Bread
India Packaged Bread Market Size
Market Segmentation, FY 2013
Market Share by Bread Type, INR bn, Publ. Mar 2012
Comments
Ken Research; CIER; All India Bread Manufacturers’ Association; EM Insight calculations;
Per capita bread consumption ranges between 1.5 kg and 1.75 kg in
India, the bread manufacturers’ association said on its website.
The organized sector includes some 1,800 small-scale bread
manufacturers, 25 medium-scale manufacturers and two large-scale
industrial producers.
The two largest players, Britannia Industries Ltd. (BIL) and Modern
Food Industries Ltd. (MFIL), were allowed to continue operations on
the basis of their capacity and expertise in 1976, when the government
restricted bread manufacturing to small scale industries (SSI) only.
VAT is not imposed on bread in most of the states. Bread is gradually
evolving into a branded product and in-store bakeries are gaining
popularity.
White Bread 84%
Brown Bread 10%
Others 5%
Unorganized 59% Organized 41% North 36%
East 10%
West 29%
South 25%
By Regions: By Players:
430 453.7
479.1 505.3 533.4
5.6%
5.5%
5.6%
5.5%
5.6%
5.4%
5.5%
5.5%
5.6%
5.6%
5.7%
0
100
200
300
400
500
600
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Packaged Bread Market Size, USD mn % y/y change
- 25 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Semi-Processed Food Market
Semi-Processed Packaged Food Market Segmentation
Soup Market Shares by Retail Value, FY 2012
Breakfast Cereal Market Shares by Retail Value, FY 2012
Noodles Market Shares by Retail Value, FY 2012
Ken Research; Euromonitor International;
67.1% 67.8% 66.3% 65.8% 65.5%
18.6% 19.0% 21.0% 22.9% 23.7%
9.7% 8.4% 7.7% 6.5% 6.0%
4.6% 4.8% 5.0% 4.8% 4.8%
0%
20%
40%
60%
80%
100%
120%
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Soups
Frozen Foods
Packaged Cereals
Noodles
Total Market Size,
USD mn 463.9 564.4 648.8 817.5 1,003.8
Hindustan Unilever Ltd.
63.20%
Nestle India Ltd. 23.30%
Capital Foods Ltd. 10.70%
Others 2.80% Nestle India Ltd.
62.6%
ITC Ltd. 8.0% Bambino Agro Industries Ltd.
5.6% Indo Nissin Foods Ltd. 4.0%
Hindustan Unilever Ltd. 2.6%
CG Foods India Pvt. Ltd. 2.3%
Glaxo SmithKline 1.8%
Others 13.1%
Kellogg India Ltd. 39.8%
Bagrry's India Ltd. 15.9%
Frito-Lay India 14.9%
Mohan Meakin Ltd. 5.8%
Marico Ltd. 3.8%
Avesta Good Earth Foods Pvt.Ltd. 1.9%
Hindustan Oil Corp. Ltd. 1.6%
Others 16.3%
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Copyright © 2014 EMIS, all rights reserved.
Source:
Frozen Processed Food and Ready Meals
Company Market Shares, Frozen Processed Food, FY 2012
The market size of frozen processed food in India, measured
by retail value, totaled some INR 3,700 mn in fiscal 2012, up
from some INR 3,000 mn in the previous year. In terms of
volume, some 22,000 tonnes of frozen processed food were
sold in India in FY 2012, against some 18,000 tonnes in the
prpevious year.
The growth in frozen processed food sales in each year
between 2007and 2012 is fueled by the rising number of
super- and hypermarkets with freezer display cabinets,
Euromonitor reported in Jan 2013.
Constant sales are expected to grow at a CAGR of 17%
between fiscal 2012 and 2017. In fiscal 2017, the retail frozen
processed food market is expected to be worth some INR
8,000 million for some 50,000 tonnes of food.
The market size of ready meals food in India, measured by
retail value, totaled some INR 1,000 mn in fiscal 2012, up
from some INR 800 mn in the previous year. In terms of
volume, some 4,000 tonnes of ready meals were sold in India
in FY 2012, against some 3,000 tonnes in the prpevious year.
Canned/preserved and frozen ready meals are the most
important sub-segments. Demand is being pushed up by
time-strapped working people and modern grocery retailers
with large in-house cold storage facilities, Euromonitor
reported in Jan 2013.
Constant sales are expected to grow at a CAGR of 9%
between fiscal 2012 and 2017. In fiscal 2017, the retail ready
meal market is expected to be worth some INR 1,700 million
for some 14,000 tonnes of food.
Company Market Shares, Ready Meals, FY 2012
Passport by Euromonitor International
Mother Dairy Fruit & Vegetable Ltd.
22.10%
Al-Kabeer Exports Pvt. Ltd. 16.50%
Venky's India Ltd. 9.00%
Innovative Foods Ltd. 9.00%
Temptation Foods Ltd. 7.00%
Darshan Foods Pvt. Ltd. 5.00% McCain Foods
India Pvt. Ltd. 4.60%
Others 26.80%
MTR Foods Ltd. 36%
ITC Ltd. 19%
Al-Kabeer Exports Pvt. Ltd. 9.10% Kohinoor Foods
Ltd. 7%
Innovative Foods Ltd. 6%
Venky's India Ltd. 5%
McCain Foods India Pvt. Ltd.
0.80%
Others 17%
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Copyright © 2014 EMIS, all rights reserved.
Source:
Milk and Cheese
Milk Market Break-Up by Segments, FY 2011
Cheese Market by Region (l) and Type (r) (publ. Mar 2012)
Cheese Market Shares by Retail Value, FY 2012
Highlights
CIER; Snapshot: Dairy Sector in India, Dec 2012, e-Research and Publications India Pvt. Ltd.;
Cheese Spread
30%
Other
Cheese
Varieties
15% Processed
Cheese
55%
North 36%
East 42%
West 16%
South 6%
Fluid Milk 30%
Ghee 8%
Khoa/Panner/Channa 7%
Milk Powder 2% Table Butter 1%
Cheese 2%
Ice Cream 1% Others (Sweets, Curd, Yoghurt,
etc.) 49%
Indians consume all internationally known dairy products but also
traditional ghee (clarified butter) and dahi (yoghurt). With consumer
tastes evolving, flavored milk is gaining popularity, especially among
the urban population, Investindia said.
Many of the industrially prepared dairy products are also produced in
Indian households. High consumption of traditional milk products
takes place during the winter season, rich in festivals and wedding
celebrations.
Changing consumption patterns and growing foodservice in India are
going to boost the cheese market in the country.
Cheese retail value was estimated at slightly below INR 10 bn and
volume – at some 40,000 tonnes.
Gujarat Co-Operative Milk
Marketing Federation Ltd.
49.2%
Britannia Industries Ltd.
15.7%
MMD Dairy 4.1% Heritage Foods (India) Ltd. 1.0%
Pantaloon Retail India Ltd. 0.2%
Others 29.8%
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Copyright © 2014 EMIS, all rights reserved.
Beverage and Cigarette Highlights
Overview
The Indian alcoholic beverage market was estimated at around INR 500 bn in FY 2012 and is expected to exceed INR 1.4tn by
2015, figures by the Indian chambers of commerce association ASSOCHAM showed. The country is the world’s third-largest
market for branded alcoholic beverages in terms of volume and the fourth-largest tobacco consumer in the world.. The per
capita consumption of alcoholic beverages, excluding country liquor, is 3 liters per year, which is low compared to other Asian
countries. The per capita consumption of beer was 1.5 liters, against a global average of 27 liters in 2012, D&B added.
Domestic
Consumption
Indian-made foreign liquor (IMFL) is the largest segment, followed by Indian-made Indian liquor (IMIL or Country Liquor).
Country liquor is made by the fermentation and rectification of molasses, a by-product of sugar. In terms of country of origin,
98% of the liquor the Indians consume is made in India. ASSOCHAM expects domestic alcohol consumption to grow to
20,000 million liters by the end of 2015, from 7,000 million liters in 2012. Products with relatively low alcoholic content such as
beer and wine face growing demand, in urban areas in particular, FRPT said in a report in Aug 2013.
Regulations
Some 52% of the alcohol produced in India is for making beverages, while 48% is used for industrial purposes, the All India
Distillers’ Association (AIDA) said. Alcoholic beverages are the second-largest contributor to the state exchequer. Liquor is
generally sold in specialty shops which are subject to licensing by state governments. State authorities also set the price at
which liquor is sold to retailers. According to industry sources, up to 20% of the liquor consumed annually has evaded taxation.
Alcohol and cigarette ads are banned, so producers opt for surrogate advertising to make their names visible.
Changing
Perception
Despite being the world’s largest whiskey market, only 30% of men and 3% of women have at least one drink a year, a study
by the India Centre for Alcohol Studies (INCAS), a government research body, showed. However, urbanization, favorable
demographics, more financially independent women and the western cultural influence have slowly been changing the
perception on drinking in India. Super- and hypermarkets in some states have started selling beer and wine, products cater
specifically to female consumers, there is a rise in the cocktail culture and women drinkers are more widely accepted, Reuters
reported on Mar 20, 2013.
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Copyright © 2014 EMIS, all rights reserved.
Source:
Alcoholic Beverage Data
Alcoholic Beverage Market Break-Down, 2011
IMFL Company Market Shares, Apr 2012
Alcoholic Beverage Consumption by Type
Wine Consumption By Segments, 2011
CIER; EMIS; FRPT Aug 2013;
Whiskey 55%
Rum 15% Gin 1.50%
Vodka 0.50%
Brandy 18%
Wine 1.50%
Others 8.50%
Data published by source in Mar 2013
United Spirits 53%
Radico Khaitan 12%
Jagatjit 9%
Tilak Nagar 4%
Mohan Meakins 9%
Others 13%
Indian 98%
Data published by source in Mar 2013
Alcoholic Beverage Consumption by
Country of Origin
Imported
2% IMFL 34.9%
IMIL 34.6%
Beer 30.3%
Wine 0.2%
Total alcoholic beverage
market 2011: 728 million
cases
(1 case = 9 liters)
Total IMFL Market 2011:
254 million cases
Total Wine Market 2011:
1.5 million cases
Red Wine 45%
White Wine 40%
Sparkling Wine 13%
Rose Wine 2%
Data published by source in Aug 2013
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Copyright © 2014 EMIS, all rights reserved.
Source:
Beer and Cigarette Data
Whiskey (l) and Beer (r) Consumption by Region
Cigarette Market Shares by Retail Value, 2011
Market Shares of Beer Manufacturers, Apr 2012
Cigarette Market by Region (l) and Brand (r) (publ. Mar 2013)
CIER, EMIS, Passport by Euromonitor International;
North 31%
East 20%
West 25%
South 24%
Data published by source in Mar 2013 North 12%
East 2%
West 37% South
49%
SAB Miller 31%
Mohan Meakins
6%
Others 13%
North 20%
East 20%
West 18%
South 42%
Classic 45%
Rothmans 15%
India Kings 5%
Others 35%
Strong Beer 54%
Standard Beer
45%
Beer Consumption by Type
United Breweries
50%
ITC Ltd. 75.0%
Godfrey Phillips India Ltd. 14.4%
VST Industries Ltd. 7.6%
Golden Tobacco Ltd. 0.5%
Others 2.5%
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Copyright © 2014 EMIS, all rights reserved.
Soft Drink and Bottled Water Highlights
Overview
Sales of carbonated drinks in India are estimated at some INR 77.5 bn in 2011 and 88.3 bn in 2012, figures by BMI showed.
Juice drink sales were estimated at some INR 89.8 bn and 103.4 bn in 2011 and 2012, respectively. Bottled water sales
jumped some 30% in value in 2011 to INR 129 bn, Euromonitor International said in a Jul 2012 report. In terms of volume,
sales totaled slightly below 6.0 billion liters in 2011, up from some 5.0 billion liters sold in the previous year.
Consumption
Per capita consumption of soft drinks in India is at about 5 litres per year, implying plenty of scope for growth, BMI reported.
Middle and lower-income groups account for some 84% of the total consumption of soft drinks in the country, CIER said.
According to a study by the National Council of Applied Economic Research (NCAER), quoted by CIER in Mar 2013, some
91% of soft drinks sales target the middle class, comprising lower, middle and upper income segments. According to CIER, per
capita consumption of fruit juices is some 0.2 liters and comes almost exclusively from urban areas.
Domestic Sales
Some 80% of soft drinks are sold in returnable bottles, resulting in a floating stock of some 1,000 million bottles worth some
INR 6.0 bn. Soft drinks sold in PET bottles account for some 12% of the market, CIER said. According to the same source,
some 70% of the soft and carbonated drinks are consumed by urban Indians and the remaining 30% - by people in the rural
parts of the country. The cola and non-cola segments claim some 62% and 38% of sales. The non-cola segment includes soda
and drinks with lime, orange and mango flavors.
Trends
Indian soft drink producers mainly rely on product innovation and marketing to boost sales. Efforts are made to offer more
health and functional drinks to the increasingly health- and value-conscious Indian consumers, BMI reported. In the bottled
water segment, sales are being pushed up by rising safety and hygiene awareness following incidents of waterborne diseases,
as well as by lifestyle changes, including higher health-consciousness. Bottled water sub-segments include 20-liter containers,
popular in homes and offices, 500-ml bottles carried in backpacks and purses, as well as flavored and spring water.
- 32 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Soft Drinks and Bottled Water (graphs show Indian fiscal years)
Fruit Beverages, Market Share by Type (published Mar 2012)
Market Share of Health Drinks, Sales Value, 2012
Market Share of Soft Drink Brands, 2011
Company Market Shares (Brand Names), Bottled Water, 2011
CIER; Business Standard; Passport by Euromonitor International;
Ready-to-Serve (RTS) Beverages
47%
Pulp/Concentrate 40%
Fruit Juices 6%
Squashes 7% Pepsi 15.60%
Thums Up (Coca-Cola) 15.60%
Sprite (Coca-Cola) 15.30%
Coca-Cola 8.90% 7Up (Pepsi) 5.50%
Others 39.10%
Parle Bisleri Ltd. (Bisleri) 42.80%
PepsiCo India Holdings Pvt. Ltd. (Aquafina) 14.90%
Coca-Cola India Pvt. Ltd. (Kinley)
11.30%
Dhariwal Industries Ltd.
(Oxyrich) 8.30%
Parle Agro Pvt. Ltd. (Bailley)
1.50% Mother Dairy
Calcutta (Mother Dairy) 0.40%
Others 20.70%
Horlicks 47%
Boost 14%
Complan 15%
Bournvita 15%
Others 9%
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Copyright © 2014 EMIS, all rights reserved.
III. Personal Hygiene and Care
Detergents
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report, have been presented as provided by the source.
- 34 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Personal Hygiene Highlights
Oral Care
Per capita annual consumption of toothpaste in India totals some 130 gr, against more than 300 gr in Europe, 255 gr in
Malaysia and 304 gr in China, Gyan Research and Analytics said in May 2013, quoting figures by the World Dental Federation.
The penetration of oral care products in rural India is at about 1/3 of that in the urban parts of the country. With a share of 75%,
toothpaste was the largest contributing segment in oral care in FY 2012, followed by toothbrush at 12%, tooth powder at 11%
and mouthwash at 2%, respectively.
Bath & Shower
India’s soap market is dominated by Hindustan Unilever (HUL) with its two major bradns – Lux, targeting women, and Lifebuoy,
targeting men and families. Shower gels, which are gaining popularity, are dominated by HUL and Colgate Palmolive, but a
number of global and domestic players are present on the market as well. Counterfeit soap manufacturers sell products of
dubious origin to illiterate and unaware customers, threatening both people’s health and the originals’ brand equity, Gyan
commented.
Antiperspirants
and Deodorants
Deodorants have entered India as male grooming products, but rising demand from women has diversified the product range
available. Women’s deodorants accounted for 40% of the market in FY 2012, Gyan said. The leading brand in the segment is
AXE from HUL. Market players include Wipro, Yardley, Vini Group, Fogg and 18. Almost half of the annual deodorant sales
takes place between Mar and Sept, which is the hottest period in India, Feedback Analysis said in a Jul 2013 report. The
coastal cities account for the highest sales of deodorants, Feedback added.
Handwash
Hospitals and other institutions accounted for more than half of the handwash product sales in FY 2012, Gyan Research said.
Rising hygiene awareness has helped make handwash an increasingly popular product for household consumption as well.
The market is dominated by brands Dettol of Reckitt Benckiser and Lifebuoy of HUL, with shares of 53% and 30%,
respectively. Popular brands also include Santoor, Palmolive and Fem.
- 35 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Personal Hygiene Market
Oral Care Market in India
Antiperspirant and Deodorant Market in India
Bath & Shower Market
Handwash Market in India
Gyan Research and Analytics
736
795 859 928
1,019
8.02% 8.05% 8.03%
9.81%
0%
2%
4%
6%
8%
10%
12%
0
200
400
600
800
1,000
1,200
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Oral Care Market in India, USD mn % y/y change
122
124 125
127
130
1.64%
0.81%
1.60%
2.36%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
118
120
122
124
126
128
130
132
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Bath & Shower Market in India, USD mn % y/y change
92
123 164
205
240 33.70% 33.30%
25.00%
17.07%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
50
100
150
200
250
300
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Anti-Perspirant and Deodorant Market in India, USD mn % y/y change
8.7
13.8 21.9
34.7
55
58.62%
58.70%
58.45%
58.50%
58.30%
58.35%
58.40%
58.45%
58.50%
58.55%
58.60%
58.65%
58.70%
58.75%
0
10
20
30
40
50
60
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Handwash Market in India, USD mn % y/y change
- 36 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Personal Hygiene Market Forecast
Oral Care Forecast
Anti-Perspirant and Deodorant Forecast
Bath & Shower Market Forecast
Handwash Market Forecast
Gyan Research and Analytics
1,162
1,324 1,510 1,721
1,962 14.03%
13.94%
14.05%
13.97%
14%
13.88%
13.90%
13.92%
13.94%
13.96%
13.98%
14.00%
14.02%
14.04%
14.06%
0
500
1,000
1,500
2,000
2,500
FY 2013 F FY 2014 F FY 2015 F FY 2016 F FY 2017 F
Oral Care Forecast, USD mn % y/y change
145 163
182
204
229
11.54%
12.41%
11.66%
12.09%
12.25%
11.00%
11.20%
11.40%
11.60%
11.80%
12.00%
12.20%
12.40%
12.60%
0
50
100
150
200
250
FY 2013 F FY 2014 F FY 2015 F FY 2016 F FY 2017 F
Bath & Shower Forecast, USD mn % y/y change
288
346 415
498
597
20.00%
20.14%
19.94%
20.00%
19.88%
19.75%
19.80%
19.85%
19.90%
19.95%
20.00%
20.05%
20.10%
20.15%
20.20%
0
100
200
300
400
500
600
700
FY 2013 F FY 2014 F FY 2015 F FY 2016 F FY 2017 F
Anti-Perspirant and Deodorant Forecast, USD mn % y/y change
72
93
121 157
204 30.90%
29.17%
30.12%
29.75% 29.94%
28.00%
28.50%
29.00%
29.50%
30.00%
30.50%
31.00%
31.50%
0
50
100
150
200
250
FY 2013 F FY 2014 F FY 2015 F FY 2016 F FY 2017 F
Handwash Market Forecast, USD mn % y/y change
- 37 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Personal Care Highlights
Skincare
The Indian skincare market comprised some 980 brands in FY 2013, which made it the largest personal care segment,
Feedback Analysis said in a report. The premium skin-care market has been growing faster than the overall market. Skincare
demand in rural areas totaled some USD 172.6 mn in FY 2013, out of a total market size of USD 837 mn in the year. Hindustan
Unilever (HUL) exports its locally produced Lakme range of products to the Middle East and South-East Asia.
Color
Cosmetics
Some 92% of color cosmetics were sold in stores, and 8% was contributed by direct marketing in FY 2013, Feedback Analysis
said. Company using direct (network) marketing chains are Amway, Oriflame, Avon and Modicare. India imports most of the
color cosmetics sold domestically from Thailand, the USA, France, China and Germany. Hindustan Unilever (HUL) and Modi
Revlon are among the largest exporters. Export destinations include the UAE, USA, Nepal and Saudi Arabia. Key factors for
growth include low penetration, increasing awareness and the changing lifestyle and spending habits of Indians.
Natural
Cosmetics
Natural cosmetics are the fastest developing cosmetic segment in India, Feedback Analysis said in 2013, quoting the chamber
of commerce association ASSOCHAM. The European Union (EU) is the largest market for Indian Ayurvedic products and
companies Shahnaz Hussain and the Himalaya Drug Company are India’s largest natural cosmetic exporters. The raw
materials and manufacturing facilities for natural cosmetics are located in rural India which promotes employment and makes
the government encourages investments in the sector.
Fragrance
The organized sector, comprising some 30 players, accounts for some 70% of the fragrance market in India, Feedback
Analysis said in a report in Jul 2013. There are between 180 and 200 in the unorganized segment, the paper added. Men’s and
women’s fragrances account for 60% and 40% of the market, respectively. Teenagers are a significant customer group in both
male and female categories, as an average urban teenager spends between USD 10-40 on fragrance and deodorants. More
than half of the perfumes sold in a year are purchased as gifts.
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Copyright © 2014 EMIS, all rights reserved.
Source:
Skincare
Skincare Market Trend
Skincare Market Break-Down by Segments, FY 2013
All India Skincare Market Size
Skincare Future Market Size
Feedback Business Consulting Services Pvt. Ltd.
532 596
667
747
837
12%
12.03%
11.91%
11.99%
12.05%
12%
12%
12%
12%
12%
12%
12%
0
100
200
300
400
500
600
700
800
900
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Skincare Market, USD mn % y/y change
Production (+) Exports (-) Imports (+) Domestic Market
FY 2013 757 60 140 837
FY 2011 622 45 90 667
All figures are in USD mn
Fairness (Illuminating, Whitening)
Creams 45%
Moisturizers 22%
Others 33% 837
937 1,050
1,175
1,317 1,475
12.05%
11.95%
12.01%
11.90%
12.09%
12.00%
11.80%
11.85%
11.90%
11.95%
12.00%
12.05%
12.10%
12.15%
0
200
400
600
800
1,000
1,200
1,400
1,600
FY 2013 FY 2014 F FY 2015 F FY 2016 F FY 2017 F FY 2018 F
Skincare Future Market Size, USD mn % y/y change
- 39 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Color Cosmetics
Color Cosmetics Market Trend
Color Cosmetics Market Break-Down by Segments, FY 2013
All India Color Cosmetics Market Size
Color Cosmetics Future Market Size
Feedback Business Consulting Services Pvt. Ltd.
340 450
522
606 32%
16.00% 16.09%
0%
5%
10%
15%
20%
25%
30%
35%
0
100
200
300
400
500
600
700
FY 2010 FY 2011 FY 2012 FY 2013
Color Cosmetics Market, USD mn % y/y change
606 702
814
944
1,096
1,270
16.09%
15.84%
15.95% 15.97%
16.10%
15.88%
15.70%
15.75%
15.80%
15.85%
15.90%
15.95%
16.00%
16.05%
16.10%
16.15%
0
200
400
600
800
1,000
1,200
1,400
FY 2013 FY 2014 F FY 2015 F FY 2016 F FY 2017 F FY 2018 F
Color Cosmetics Future Market Size, USD mn % y/y change
Production (+) Exports (-) Imports (+) Domestic Market
FY 2013 566 60 100 606
FY 2011 410 40 80 450
All figures are in USD mn
Nails 242.4
Lips 181.8
Face 109.1
Eyes 72.7
40%
12%
18% Hindustan Unilever was the largest
player in Color Cosmetics in FY
2013 with a market share of 29%.
Penetration of Color Cosmetics in
Urban Areas – 70% (FY 2013)
Rural Areas – 40% (FY 2013)
30%
Figures are in USD mn
- 40 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Natural Cosmetics and Fragrance
Natural Cosmetics All India Market Size
Fragrance All India Market Size
Natural Cosmetics Future Market Size
Fragrance Future Market Size
Feedback Business Consulting Services Pvt. Ltd.
Production (+) Exports (-) Domestic Market
FY 2013 1,407 182 1,225
FY 2011 1,000 120 880
All figures are in USD mn
Production (+) Exports (-) Imports (+) Domestic Market
FY 2013 280 140 200 340
FY 2011 142 55 75 162
All figures are in USD mn
340 480
660
860
1,120
1,460
36.0%
41.2%
37.5%
30.3% 30.2% 30.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
200
400
600
800
1,000
1,200
1,400
1,600
FY 2013 FY 2014 F FY 2015 F FY 2016 F FY 2017 F FY 2018 F
Fragrance Future Market Size, USD mn % y/y change
1,225
1,370 1,540 1,720
1,930
2,160 18.0%
11.8% 12.4%
11.7% 12.2% 11.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
500
1,000
1,500
2,000
2,500
FY 2013 FY 2014 F FY 2015 F FY 2016 F FY 2017 F FY 2018 F
Natural Cosmetics Future Market Size, USD mn % y/y change
- 41 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Dishwashing and Laundry Care (graphs show Indian fiscal years)
Market Shares by Retail Value, Dishwashing Products, 2012
Dishwashing Product Highlights
Company Market Shares by Retail Value, Laundry Care, 2012
Laundry Care Highlights
Passport by Euromonitor International
Hindustan Unilever 60.4%
Jyothy Laboratories
16.4% Rohit Surfactants
6.1%
Ecof Industries 4.4%
Fena 3.1%
Pitambari Products 3.0%
Nirma 2.7%
Others 4.0%
Hindustan Unilever 38.3%
Rohit Surfactants 16.6%
Procter&Gamble Home Products
11.4%
Nirma 8.4% Jyothy
Laboratories 4.5%
Fena 2.6%
Reckitt Benckiser India 1.8%
Others 16.4%
The market for laundry care products totaled INR 136 bn in FY 2012
and is expected to reach INR 151 bn by FY 2017, Euromonitor said in
a report in Jul 2013.
Fabric conditioners are also gaining popularity. Manufacturers are
focusing on product innovation to keep brand loyalty and demand
high.
The average laundry detergent prices have gradually been rising,
Euromonitor commented.
The market for dishwashing detergents totaled INR 18 bn in FY 2012
and is expected to reach INR 21 bn by FY 2017, Euromonitor said in
a report in Jul 2013.
Consumers have noticeably been shifting from dishwashing bars to
liquid dishwashing products.
Rising demand and inflation have kept the average retail price of
dishwashing detergents rising, Euromonitor commented.
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Copyright © 2014 EMIS, all rights reserved.
IV. Apparel and Footwear
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report, have been presented as provided by the source.
- 43 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Apparel Market
Indian Domestic Apparel Consumption, USD bn
Apparel Market Size of Major Economies, USD bn
Branded/Unbranded Apparel Market
Wazir Management Consultants, Sep 2012, Technopak analysis; IMAGES Business of Fashion;
350
150
225
110
40 37 45 25 20
73
411
366
316
127 124
87 75
34 31
100
33%
14%
21%
10%
4% 3% 4% 2% 2%
7%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
300
350
400
450
EU-27 China United States Japan India Russia Brazil Canada Australia Others
Apparel Market Size in 2011, USD bn Apparel Market Size Forecast, 2020, USD bn % of Global Apparel Market in 2011
Global Apparel Market Size 2011 – USD 1,075 bn
Global Apparel Market Size 2020 F – USD 1,670 bn
25 27 31 35 40
124
8.0%
14.8%
12.9%
14.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2020 F
Indian Domestic Apparel Consumption, USD bn % y/y change
5
11
18
30
4
10
20
31
Branded, USD bn Unbranded, USD bn Branded, USD bn Unbranded, USD bn
2011 2020 F
Men Women
Share of Modern Retail in Total Apparel Market in
2012 – 20%
2017 F – 28.6% (Source: Technopak Analysis)
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Copyright © 2014 EMIS, all rights reserved.
Source:
Apparel Market (cont’d)
Footwear and Accessories Market, 2012, USD bn
Men's and Womenswear Market Forecast
Brand Mix in Modern Apparel Retail, 2012
Boy's and Girlswear Market Forecast
Technopak Analysis; IMAGES Business of Fashion;
6
2
Footwear and Accessories Market,2012, USD bn
Total Market Modern Retail
Modern Retail 27%
Footwear and Accessories Market by
Retail Format, 2012
Traditional Retail 73%
Domestic
Brands 82%
International
Brands 18%
2012 2017 F
International
Brands 25%
Domestic
Brands 75%
809.4
1,203.5
1,828.0
720.4
1,114.5
1,753.0
2011 Est.
2016 Proj.
2021 Proj.
Womenswear Market Size Projections, INR bn
Menswear Market Size Projections, INR bn
194.3
317.7
522.3
178.9
304.3
519.2
2011 Est.
2016 Proj.
2021 Proj.
Girlswear Market Size Projections, INR bn
Boyswear Market Size Projections, INR bn
- 45 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Athletic Apparel and Footwear (graphs show Indian fiscal years)
Asia-Pacific Athletic Apparel Market by Geography, %
India Athletic Apparel and Footwear Market Size and Forecast
Asia-Pacific Athletic Footwear Market by Geography, %
Athletic Apparel and Footwear Market in India
Ken Research
28.5% 32.3% 37.4% 41.4% 42.5%
43.9% 39.7% 36.3% 32.6% 29.0%
5.8% 5.9% 4.8% 4.2% 3.7%
2.2% 2.2% 2.6% 3.0% 3.2%
19.6% 20.0% 18.8% 18.8% 21.6%
0%
20%
40%
60%
80%
100%
120%
2008 2009 2010 2011 2012
Others
India
Australia
Japan
China
39.7% 43.2% 47.3% 49.7% 46.9%
28.8% 26.4% 24.2% 21.7% 19.1%
6.5% 6.5% 5.2% 4.4% 3.7%
3.1% 3.0% 3.4% 3.8% 4.0%
21.9% 20.9% 19.8% 17.9% 26.2%
0%
20%
40%
60%
80%
100%
120%
2008 2009 2010 2011 2012
Others
India
Australia
Japan
China
Unorganized
80% Reebok 34.6%
Adidas 21.1%
Puma 12.2%
Nike 14.5%
Fila 5.0%
Others 12.6%
Market
Shares of
Major
Players, 2011
Organized
20%
2012
361.
4
452
558.
2
682.
7 822
960.
1
1,13
8.60
1,33
6.80
401.5 501
618.5 758.8
915
1,120.80
1,327.20
1,568.00
2010 2011 2012 2013 F 2014 F 2015 F 2016 F 2017 F
Athletic Apparel, USD mn Athletic Footwear, USD mn
- 46 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Other Apparel (graphs show Indian fiscal years)
India Athletic Apparel and Footwear Market by Gender, 2012
Penetration of Worldwear in India, 2012
Worldwear Market in India, USD bn
Denim Market in India, USD mn
Ken Research; Technopak Analysis; IMAGES Business of Fashion;
Men 52.6%
Women 29.5%
Kids 17.9%
Men 57.1%
Women 28.4%
Kids 14.5%
Footwear Apparel
58%
48%
11%
12%
15%
19%
16%
21%
2012
2017 F
Unbranded Mass Market Mid-Premium Premium/Luxury
Total 2017: USD 2,530 mn
Total 2012: USD 1,290 mn
17
25
4
7
4
7
2012
2017 F
Men's, USD bn Women's, USD bn Kids', USD bn
Total 2012: USD 25 bn
Total 2017: USD 39 bn
Walking and Running Footwear 2012: 45.7%;
Lifestyle Footwear 2012: 17.6%
Worldwear
60%
Other Apparel
40%
Other
Worldwear
52%
Casualwear
48%
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Copyright © 2014 EMIS, all rights reserved.
V. Consumer Durables
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report, have been presented as provided by the source.
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Copyright © 2014 EMIS, all rights reserved.
.
…
Source:
Consumer Electronics and Home Appliances – SWOT Analysis
The strengths of the Indian consumer electronics and home appliances
sector include low level of penetration of appliances, a vast unsaturated
rural market, a large share of young population with access to rising
disposable incomes (13 million young people join the workforce every
year), urbanization, the rise in the number of double-income families,
the strengthening of the middle class and the increasing demand for
modern housing and appliances.
Most of the Indian-made consumer durables are for the domestic market and thus are not eligible for tax refunds. As a result, the heavy multiple-level taxation in the country is a major factor stalling innovation and growth. As of mid-Sep 2013, the Goods and Services Tax (GST) has not been implemented, despite having been in the works since 2009. Other weaknesses include rising inflation; seasonal demand and uncertain power supply esp. in rural India; underdeveloped organized distribution networks and slow and uncertain transportation infrastructure.
The intense competition among players make them incur huge branding
and advertising expenses which lower their profit margins. In addition,
the rising of raw material prices results in higher production costs and
the rapid changes in technologies make product lifecycle short. The
entry of low-priced products by private labels of organized retailers is
likely to lower market shares of both domestic manufacturers and global
companies.
Rural development will secure growth at entry level and the rising
numbers of the middle class will encourage development in the high-
end segment. The aggressive pricing policies and the easy finance
options offered by manufacturers boost sales among price-sensitive
consumers, while media and advertising provide increasing
consumer awareness.
SWOT
Analysis
Strengths Opportunities
Weaknesses Threats
Company annual reports;
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Copyright © 2014 EMIS, all rights reserved.
Source:
Consumer Durables Snapshot
Consumer Durables Market Size
Penetration of Consumer Durables in India
Market Segmentation - Consumer Durables, FY 2012
Consumer Durable Sales
Netscribes; ASSOCHAM; capitaline.com; Corporate Catalyst India (CCI); CRISIL Opinion Sept 2012;
Refrigerators
42%
Flat Panel TV
16%
Microwave
6%
AC
15%
340
375 415.3 463.1
520
10.29%
10.75%
11.51%
12.29%
9%
10%
10%
11%
11%
12%
12%
13%
0
100
200
300
400
500
600
FY 2011 FY 2012 FY 2013 Est. FY 2014 F FY 2015 F
Consumer Durables Market Size, INR bn % y/y change
77%
33%
17%
13%
3.80%
TV
Refrigerator
Air Cooler
Washing Machine
Air-Conditioner
Penetration of Consumer Durables inUrban India (data published Dec 2012)
25%
17%
4%
TV Refrigerator AirConditioner
Penetration of Consumer Durables inRural India
Source: Netscribes report, Jan 2012
Domestic
Companies
35%
Multinational
Companies
(MNCs) 65%
Data Published Mar 2012
Washing
Machines
21%
Source: capitaline.com
Data publ. Dec 2012
19% 22% 29% 33%
52%
81% 78% 71% 67%
48%
0%
20%
40%
60%
80%
100%
120%
FY 2009 FY 2010 FY 2011 FY 2012 FY 2017 F
Low-ValueProducts
High-ValueProducts
- 50 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
White Goods (graphs show Indian fiscal years)
Air Conditioner Sales in India
Refrigerator Market in India
Washing Machine Market in India
Dishwasher Market in India
capitaline.com; Euromonitor International; Netscribes Jan 2013;
2.2
2.8 3.6
3.1
3.5
27.30% 28.60%
-13.90%
12.90%
-20%
-10%
0%
10%
20%
30%
40%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2008 2009 2010 2011 2012 Proj.
Air Conditioner Sales in India, million units % y/y change
6
73
10.4
158
Washing MachineSales, mn units
Washing MachineSales, INR bn
2012 2017
Figures for 2017 are approximate
97.69
169
2010 2014 F
Refrigerator Market in India, INR bn
LG 35%
Godrej 18%
Others 47%
Company Market Shares, 2011
Others 26.20%
LG
Electronics
India 24.8%
Samsung
India
Electronics
24.8%
Videocon Industries
13.9%
Whirlpool
of India
11.90%
2012
32,000
886
82,000
1,800
DishwasherSales, units
DishwasherSales, INR mn
2012 2017
Figures for 2017
are approximate
Others 17.90%
IFB Industries
51.5%
LG Electronics
India 10.80%
Ele
ctro
lux
8.70
%
BSH
Bosch &
Siemens
Hausgeraete
8.60%
Samsung India Electronics
2.50%
2012
- 51 - Any redistribution of this information is strictly prohibited.
Copyright © 2014 EMIS, all rights reserved.
Source:
Brown Goods (graphs show Indian fiscal years)
Microwave Oven Market Size
Vacuum Cleaner Market in India
Iron Market in India
Food Preparation Appliance Market in India
Netscribes Apr 2013; Euromonitor International;
1.5 1.7 2.1 2.6 3.4 4.4
11.5 14.6
18.8
24.5
32.6
43.6
2011 2012 2013 Est. 2014 F 2015 F 2016 F
Microwave Oven Market Volume, mn units Microwave Oven Market Value, INR bn
Philips
Electronics
India
13.10%
Maharaja
Appliances
8.2%
Preethi
Industries
7.40% Sujata
Enterprise
5.70%
Usha
International
3.2%
Inalsa
Appliances
4.5%
2012
Bajaj Electricals
15.7%
6.0
12.0
9.2
17.0
Food PreparationAppliance Sales, mn
units
Value of FoodPreparation Appliance
Sales, INR bn
2012 2017
Figures for 2017
are approximate
439.0
21.0
600.0
27.0
Vacuum CleanerSales, thou units
Value of VacuumCleaner Sales, INR
bn
2012 2017
Figures for 2017
are approximate
Eureka Forbes
Ltd. 73.30%
Others 18.80%
2012
LG Electronics
India 5.5%
Philips Electronics
India 2.4%
Ajanta 5.20%
Others 23.00%
2012
Bajaj
Electricals
25.60%
Philips
Electronics
India
13.30%
Usha Intl
10.60%
Crompton
Greaves
9.90%
Inalsa
Appliances
6.40%
Kitchen
Appliances
India 6.00%
12
7,800
16.8
10,400
Iron Sales, mn units Value of Iron Sales,INR mn
2012 2017
Figures for 2017
are approximate
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Copyright © 2014 EMIS, all rights reserved.
Source:
Consumer Electronics
Personal Computer Market in India
TV Market in India
Mobile Handset Market in India
Digital Camera Market in India
CEIC; CyberMedia Research (CMR); BuddeComm; Netscribes Jan 2012;
2.5 3.4 4.1 5.5 7.4 10 17.5
25
35.7
51
72.9
104.1
FY 2010 FY 2011 FY 2012 Est. FY 2013 F FY 2014 F FY 2015 F
Digital Camera Sales, mn units Digital Camera Sales, INR bn
5.28 5.53 6.03
6.71 6.77
1.52
2.51
3.28
4.02
4.40
5.49 5.75
6.16
6.84
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Desktop Sales, mn units Notebook Sales, mn units Monitor Sales, mn units
Unit Shipments Jan-Apr 2013, millions % y/y change
Mobile Handsets 73.5 11.10%
Featurephones 94.1 2.40%
Smartphones 9.4 167.30%
Mobile Handset Leading Players Jan-Apr 2013
Market Share
Nokia 20.30%
Samsung 14.20%
Micromax 8.90%
TV and Broadcasting in India, 2012 Units
TV Receivers 175 million
TV Households 130 million
TV Household Penetrartion 52%
Cable TV Households 95 million
Source: BuddeComm estimates based of ITU, TRAI and industry data
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Source:
Consumer Durable Financing in India
Consumer Durable Loans
Consumer Durable Loans by Product, FY 2012
Finance Penetration for Consumer Durables
Consumer Durable Financing by Regions, FY 2012
CRISIL Opinion Sept 2012
45
124
FY 2012 FY 2017
Consumer Durable Loans, INR bn
10%
15%
FY 2012 FY 2017
Finance Penetration for Consumer Durables, %
Panel TV 46%
Split Air-Conditioner 20%
Refrigerator 17%
Washing Machine 5%
CRT TV 1%
Others 11%
Southern, Western Regions 60%
Other Regions 40%
High-value products
account for 2/3 of the total
consumer durable
financing in the Southern
and Western regions.
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Copyright © 2014 EMIS, all rights reserved.
VI. Other Segments
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report, have been presented as provided by the source.
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Copyright © 2014 EMIS, all rights reserved.
Source:
Pharmaceuticals
Indian Drug Retail Market
Drug Retail Market Segmentation
OTC Market in India
OTC and Prescription Drug Sales Segmentation, 2012
Netscribes May 2013;
140 157.8
178.6 203.3
232.7
268.1
12.71%
13.18%
13.83%
14.46%
15.21%
11%
12%
12%
13%
13%
14%
14%
15%
15%
16%
0
50
100
150
200
250
300
FY 2012 FY 2013Est.
FY 2014 F FY 2015 F FY 2016 F FY 2017 F
OTC Market in India, Inr bn % y/y change
542 640.7
759.2
901.2
1,071.50 1,275.10
18.21%
18.50%
18.70%
18.90% 19%
18%
18%
18%
18%
19%
19%
19%
19%
0
200
400
600
800
1,000
1,200
1,400
FY 2011 FY 2012Est.
FY 2013 F FY 2014 F FY 2015 F FY 2016 F
Indian Drug Retail Market, INR bn % y/y change
OTC Drugs 15%
Prescription Drugs 85%
7% 8% 10% 11% 13% 15%
93% 92% 90% 89% 87% 85%
0%
20%
40%
60%
80%
100%
120%
FY 2011 FY 2012Est.
FY 2013 FFY 2014 FFY 2015 FFY 2016 F
Unorganized, %
Organized, %
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Copyright © 2014 EMIS, all rights reserved.
Source:
Motor Vehicles (graphs show Indian fiscal years)
Total Vehicle Sales Annual Domestic Vehicle Sales (Excluding Exports)
CEIC; Society of Indian Automobile Manufacturers (SIAM);
1,578.43 1,768.28 1,888.43 2,397.48 2,945.87 3,125.39 517.30 549.49
426.82
577.73
758.95 902.20 547.81 506.01 497.79
613.61
795.99 876.13 8,491.98 8,068.99 8,441.79
10,511.01
13,300.53
15,382.97
2007 2008 2009 2010 2011 2012
Two-WheelerSales,thousands
Three-WheelerSales,thousands
CommercialVehicleSales,thousands
PassengerVehicleSales,thousands
20,286.68
11,135.52 10,892.77 11,254.84
14,099.82
17,801.34
The difference between annual values in
the left and right graph represent the
respective annual vehicle exports.
1,379.98 1,549.88 1,552.70 1,951.33 2,501.54 2,618.07
467.77 490.49 384.19 532.72
684.91 809.53 403.91 364.78 349.73
440.39
526.02 513.25
7,872.33 7,249.28 7,437.62
9,370.95
11,768.91
13,435.77
2007 2008 2009 2010 2011 2012
DomesticTwo-WheelerSales,thousands
DomesticThree-WheelerSales,thousands
DomesticCommercialVehicleSales,thousands
DomesticPassengerVehicleSales,thousands
17,376.62
10,123.99 9,654.44
9,724.24
12,295.40
15,481.38
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Source:
Luxury Goods
Indian Luxury Goods Market
Luxury Goods Market in India by Segments, 2011
Luxury Goods Market of Selected Countries
Technopak report, Sept 2011; Bain & Company (Fondazione Altagamma) 2012;
Brazil India South
Africa
SouthEast
Asia***
Population 2011 190 million 1.2 billion 51 million 560 million
% of World Population 2.80% 17.50% 0.70% 8.10%
UHNWI* 2011 4,600 7,700 800 4,300
HNWI** 2011 165,000 125,000 ~70,000 ~200,000
Luxury Goods Market 2012
Est EUR 2.7 bn EUR 1.0 bn EUR 0.8 bn EUR 4.8 bn
% of Global Market 1.30% 0.50% 0.40% 2.30%
Expected Growth over next
5 years 15-25% 20-30% 20-30% 15-25%
UHNWI is Ultra-High Net Worth Individuals
HNWI is High Net Worth Individuals
SEA includes all APAC countries, except for Greater China, South Korea, India and Japan.
3 3.6
4.3 5
5.8
6.8
2010 2011 2012 Est. 2013 F 2014 F 2015 F
Indian Luxury Goods Market, USD bn
Luxury Assets 65%
Luxury Services 22%
Luxury Products 13%
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Copyright © 2014 EMIS, all rights reserved.
VII. E-Commerce (B2C)
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report, have been presented as provided by the source.
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Copyright © 2014 EMIS, all rights reserved.
E-Commerce Highlights
Growth
E-commerce in India has evolved noticeably over the past years in terms of market turnover, usage patterns and the range of
services offered. The total e-commerce business in the country, including retail and other products and services such as travel
and financial services, was estimated at USD 10 billion in 2012 and is seen to grow by some 33% by end-2013, data by
Technopak and the Internet and Mobile Association of India (IMAI) showed.
Users
In Mar 2013, India reported the world’s third-largest Internet population, jumping 31% y/y to 73.9 million people, comScore said
in a report. About ¾ of India’s online population was aged under 35 as of Jun 2013. Men generally surf more and longer than
women, but women aged 35-44 are among the heaviest Internet users. Some 60% of Indian web users visit e-tailing sites, but
the time spent on online shopping is low compared to other countries.
Drivers
Factors encouraging the development of e-commerce and e-tailing in India include rising discretionary spending, a rapidly
growing middle class with aspirational consumption patterns, a growing online consumer base, which is estimated to comprise
180 million broadband users by 2020, and a burgeoning class of mobile internet users. Cost saving, convenience and the 24/7
availability of online products and services are also beneficial to their future growth.
Outlook
E-tailing, which is selling retail goods on the Internet and is a segment of e-commerce, is set to touch USD 76 bn by 2021 in
India, The Times of India reported in Jan 2013, quoting a study by Technopak. The Internet and Mobile Association of India
(IMAI) expects the consumer potential of e-commerce to reach 228.6 million households in FY 2025, from 146.2 million
households in FY 2010. E-tailing is set to capture 5.3% of the total retail market by 2021, from 0.1% in 2012, Technopak added.
Challenges
Companies wishing to sell to consumers online should strive to develop innovative services and delivery models and set up
high standards of quality and safety for delivery, returns and payments, IMAI commented. The government should work to
improve infrastructure, raise broadband connectivity, carry out fiscal and regulatory reforms and provide digital literacy training
for low-income groups.
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Source:
E-Commerce in India Snapshot
Digital Commerce Trend
Penetration of Online Retail, as of Jun 2013
Components of Digital Commerce Market in 2012
India's Online Population as of Mar 2013
informationweek.in; Internet and Mobile Association of India (IMAI); comScore Media Metrix, Mar 2012 - Mar 2013, Jun 2013;
192.40
262.65
351.42
473.49
629.67 37%
34%
35%
33%
31%
32%
33%
34%
35%
36%
37%
0
100
200
300
400
500
600
700
as of Dec 2009 as of Dec 2010 as of Dec 2011 as of Dec 2012 as of Dec 2013,F
Digital Commerce Turnover, INR bn y/y growth, %
Online Travel 71%
E-Tailing 16%
Financial Services 6%
Classifieds 5%
Other Online Services 2%
74.4%
84.1%
60.3% 62.7%
77.3%
84.3
168.2
28.4 36.9
58.5
0
50
100
150
200
0%
20%
40%
60%
80%
100%
Worldwide China India Russia Brazil
Penetration of Online Retail in India and the World, as of Jun 2013
Average Time Spent on Online Retail Activities, as of Jun 2013
55.2% 54.0%
9.3% 11.5%
12.2% 11.4%
9.4% 9.6%
13.9% 13.5%
0%
20%
40%
60%
80%
100%
120%
As of Mar 2012 As of Mar 2013
Rest ofAPAC
SoutheastAsia
Japan
India
China
Total 644 Million Total 604 Million
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Source:
E-Tailing Data
E-Tailing Penetration by Segments, as of Jun 2013
Unique Visitor Data for Selected Domestic E-Tailers, as of Jun 2013
Three-Month Growth in Online Retail, as of Jun 2013
comScore Media Metrix, Jun2013
13,173 12,649 12,425
11,924
8,447 8,109
6,092
6
16.2
6.3 7.6 7.8
3.1 1.9
0
2
4
6
8
10
12
14
16
18
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
myntra.com flipkart.com jabong.com Amazon Sites snapdeal.com homeshop18.com Indiatimes Shopping
Unique Visitors, thou persons Minutes per Visitor
+151% +119% +10% +31% +124% +77%
y/y Increase in Unique Visitors
+156%
7%
8%
11%
13%
15%
16%
21%
Retail - Movies
Healthcare
Computer Hardware
Consumer Electronics
Comparison Shopping
Computer Software
Apparel
Penetration of Retail Categories in Digital Commerce, %, as of Jun 2013
80%
26%
25%
18%
17%
Retal - Food
Tickets
Jewelry/Luxury Goods/Accessories
Fragrance/Cosmetics
Healthcare
Three-Month Growth in Online Retail, %, as of Jun 2013
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Source:
Comments
E-Commerce – Ecosystem and Challenges
Challenges the Indian e-commerce has to overcome to boost its share on the retail market include:
Connectivity: low and costly broadband penetration, low computer ownership, low digital literacy;
Payments: poor payment gateway infrastructure, low levels of debit/credit card penetration, low levels of financial inclusion;
Delivery: poorly developed supply chain sector, inefficient postal system;
Regulatory: taxes on trade and commerce are complex and vary across states, which makes business operations of companies with
innovative models very difficult.
The E-Commerce Ecosystem is Intricately Interconnected
Internet and Mobile Association of India
TRANSACTION BUSINESS
Products/Services
CONSUMER
Demand/Ability to Pay
Delivery
Infrastructure
Connectivity
Infrastructure
Regulatory
Infrastructure Payments
Infrastructure
Supply chain:
Warehousing and
Infrastructure
Broadband and
Networking
State/Local Taxes, Sector
Regulations Digital Payments and
Gateways
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Copyright © 2014 EMIS, all rights reserved.
VIII. Major Players
India’s fiscal year runs from Apr 1 to March 31. Thus, FY 2013 (also called fiscal 2013) means Apr 1, 2012 – Mar 31, 2013. In Indian documents, FY (fiscal) 2013 is also labeled FY12-13.
The remaining nine months of calendar 2013, i.e. Apr-Dec, belong to fiscal year 2014.
In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by
the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or
what in India is referred to as fiscal 2013. This applies only to Indian companies and does not apply to companies with global operations, which may be presented in this report.
When sources have not provided details on their year labeling policy, year labels in graphs featured in this report, have been presented as provided by the source.
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Copyright © 2014 EMIS, all rights reserved.
Source:
Top M&A Deals
Top M&A Deals in the Indian Retail Sector in the Past Year
DealWatch;
Date Target Company Deal Type Buyer Seller Deal Value
USD (mn) Stake %
Jul 10, 2013 Flipkart Online Services Minority Stake Purchase;
PE Entry; VC Entry Accel Partners,Iconiq Capital, Naspers Ltd.,Tiger Global, N/A 200.00 N/A
Jun 7, 2013 Snapdeal.com Minority Stake Purchase;
PE Entry; VC Entry
Bessemer Venture Partners, IndoUS Venture Partners, Intel Capital, Nexus
Venture Partners, Recruit Holdings Co. Ltd., Saama Capital, eBay China, ruNet
Holdings
N/A 140 N/A
Aug 13, 2013 Snapdeal.com Minority Stake Purchase Softbank Corp N/A 75 N/A
Sep 27, 2012 Woolworth's Wholesale India
Pvt. Ltd. Acquisition Infiniti Retail Ltd. Woolworths Ltd. 37.55 100%
Jan 22, 2013 Pantaloon Retail India Ltd. Block Trade, PE Entry Goldman Sachs Capital Partners, Morgan Stanley Kotak Securities Ltd. 25.29 2.40%
Sep 17, 2013 Trent Ltd. Open Market Purchase Arisaig Partners Asia N/A 18.38 2%
Feb 6, 2013 V-Mart Retail Ltd. IPO N/A N/A 17.83 32%
Apr 11, 2013 TV18 Shopping Network Ltd. Minority Stake Purchase OCP Asia Ltd. N/A 15 5%
Apr 25, 2013 Big Shoe Bazaar India Pvt.
Ltd.
Minority Stake Purchase;
PE Entry; VC Entry
Catamaran Ventures, Fidelity Growth Partners India, Nexus Venture Partners,
Qualcomm Ventures, N/A 12 N/A
Apr 10, 2013 Hoopos.com Acquisition BabyOye.com N/A N/A 100.00%
Apr 10, 2013 BabyOye.com Minority Stake Purchase;
PE Entry; VC Entry Accel Partners, Helion Venture Partners, Tiger Global, N/A 12 N/A
Apr 2, 2013 Pepperfry.com Minority Stake Purchase,
VC Entry Norwest Venture Partners (NVP) N/A 8 N/A
Apr 5, 2013 Fintiquette.com Acquisition Myntra.com N/A N/A 100.00%
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Source:
Bharti Retail Pvt. Ltd.
Bharti Retail Net Sales, INR bn
Bharti Retail is a wholly-owned company of the Bharti
Enterprises industrial conglomerate, which also operates
in the telecom, real estate and insurance sectors.
Bharti Retail operates hypermarket and convenience
stores under the Easyday and Easyday Market brands.
The company had a 1.8% market share in 2012 and
ranked 11th in grocery retailing in India, Euromonitor
International said in a Jul 2013 report.
Bharti Retail’s stores are mainly located market areas in
Tier 2 cities in northern and western Indian states.
In 2012, Bharti Retail added a new store in Andhra
Pradesh to its few other outlets in southern India,
Euromonitor International said.
The company has a wide private label portfolio of both
grocery and non-grocery products. The company also
sells goods under the Walmart private labels Great Value
and George.
In April 2012 Bharti Retail signed an agreement with
Naturals Salon and Spa, owned by Chennai-based Groom
India Salon & Spa Pvt Ltd. Under the contract, Naturals
Salon and Spa outlets will open in 250 Easyday outlets by
2015.
Stores and Private Labels
Company data; Passport by Euromonitor International;
2.9
3.6
4.6
2009 2010 2011
Net Sales, INR bn
The first Easyday store was launched in Ludhiana and Easyday Market -
in Jalandhar, in 2008. In 2012, the company operated more than 210
stores in the states of Punjab, Haryana, Uttar Pradesh, Uttarakhand,
Madhya Pradesh, Rajasthan, Himachal Pradesh, Chhattisgarh, NCR
Delhi, Jammu & Kashmir, Maharashtra and Karnataka.
Bharti Retail’s private label portfolio comprises Home Trends and
Mainstays (furniture and homeware), Kid Connection (toys, games and
apparel), Faded Glory (footwear), Athletic Works (sportswear), Easy
Choice (groceries), Equate (beauty and personal care) and Astiva and
Simply Basic (Apparel).
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Source:
Carrefour Wholesale Cash & Carry India Pvt. Ltd.
Current Operating Income by Geographic Region, 2012, EUR mn
French company Carrefour, established in 1959, is
Europe’s largest and the world’s second-largest retailer.
The group operates four grocery store formats:
hypermarkets, supermarkets, cash&carry and
convenience stores.
In Dec 2010, Carrefour opened in New Delhi Carrefour
Wholesale Cash&Carry - its first store in India. In 2012,
the company operated a total 4 cash&carry stores in the
country – in Delhi, Jaipur, Agra and Meerut, the global
retailer’s most recent Annual Report said.
Carrefour plans to open eight to 10 wholesale stores in
India, doubling its network in the country, and is searching
for potential locations, livemint.com reported on Aug 9,
2013. The company has adopted a wait-and-see attitude
after the Indian government allowed 51% FDI in multi-
brand retail and has still not made any steps toward
opening retail stores in the country.
Besides India, Carrefour is present in two other Asian
markets - China and Taiwan. As of December 2012, it had
218 hypermarkets in China and 61 hypermarkets and
three supermarkets in Taiwan, the Business Standard
reported on May 13, 2013.
Over the past few months, Carrefour has withdrawn from
key Asian markets like Singapore, Malaysia and
Indonesia, to reduce debt and generate cash flow. Among
other countries, it has exited from Colombia and cut stake
in its Turkish business.
Carrefour SA’s Net Sales by Geographic Region, 2012, EUR mn
Carrefour SA 2012 Annual Report; Livemint.com; The Business Standard;
France 35,341
Europe (excl. France) 20,873 Latin America
14,174
Asia 6,400
929
509 608
168
-74
France Europe (excl.France)
Latin America Asia Global Functions
Current Operating Income by Geographic Region, 2012, EUR mn
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Source:
TESCO/Trent
Trent Financial Performance (Standalone)
British giant Tesco is one of the world’s largest retailers
and the grocery market leader in the UK, Malaysia, the
Republic of Ireland and Thailand.
In India, the company operates a wholesale business in
Mumbai – Tesco Hindustan Wholesaling Pvt Ltd. (THWPL)
- which supplies products to Star Bazaar – a chain of
stores operated by Trent, which is the retail arm of the
industrial conglomerate Tata Group. Tesco has a franchise
arrangement with Trent to help with the growth of the Star
Bazaar chain.
Tesco also has two offices in Bangalore and Delhi, which
source over £270 mn worth of products a year from India.
Tesco’s Hindustan Service Centre (HSC), which employs
over 6,000 people and supports ongoing worldwide
operations, is located in Bangalore, Karnataka.
Tata Group’s subsidiary Trent owns and manages a
number of retail chains in India. Established in 1998 and
headquartered in Mumbai, Trent runs fashion & lifestyle
chain Westside; hypermarket chain Star Bazaar; book-and-
music chain Landmark and Fashion Yatra, a value-for-
money family fashion store.
As of Mar 31, 2013, Trent and its subsidiaries had 116
stores across all formats, the company said in a corporate
filing. For 2012, Trent reported a consolidated net income
of INR 21,320.3 mn and a net loss of INR 379.5 mn. Trent
employed a total 6,407 at end-Mar 2013.
Performance of Trent Brands
Bombay Stock Exchange; tescoplc.com; Trent Annual Report 2012-13;
5,874.81
7,167.12
8,217.93
9,358.04
402.
2
430.
37
472.
67
622.
59
2009 2010 2011 2012
Net Sales, INR mn Net Profit, INR mn
2010 2011 2012 Number of Employees 2012
Westside 54 67 70 2,863
Star Bazaar 11 15 15 2,516
Landmark 19 719
6,480 7,810
2,230 2,000
2011 2012
Star Bazaar Revenue from Operations, INR mn
Landmark Revenue from Operations, INR mn
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Source:
IKEA
IKEA India Ltd.
Swedish furniture maker IKEA is in the process of
purchasing land in the states of Andhra Pradesh,
Maharashtra, Haryana and Karnataka, to house its stores
in India, the Wall Street Journal reported on Aug 12, 2013.
IKEA’s first store in the country might open in four to five
years, WSJ added, quoting company CEO Mikael
Ohlsson.
Indian Trade Minister Anand Sharma and Ohlsson held a
closed-door meeting on Aug 12 to discuss the furniture
maker’s plans in the country.
IKEA said it would spend some INR 105 bn, or USD 1.72
bn, to open 25 stores across India, after its government
allowed 100% foreign ownership in single-brand retail
stores in late 2011.
The company applied to open stores in India in June 2012
and received an approval in May the following year.
Before actual construction works begin, the company’s
stores would have to be approved by the authorities of the
respective states in which they will be located.
As part of its setting foot in India, IKEA will enhance its
local sourcing of products made of bamboo, hand-loom
fabrics and handicrafts. It has also started working with
the Indian National Institute of Design on developing
products for the local market, WSJ and firstpost.com
reported.
Number of IKEA Stores in Selected Countries
Wsj.com; firstpost.com; Economic Times;
46
38
28
25
18
14
11
Germany
U.S.
France
India (as planned)
UK
Russia
China
IKEA has already incorporated an Indian subsidiary called IKEA India
Ltd, firstpost.com reported on Aug 13, 2013. IKEA has sought injunction
orders from Indian courts against a dozen domestic companies whose
names sound similar to IKEA, regardless of their lines of business, the
Economic Times reported on Sep 17, 2013. Two such companies are
Aikiya Global, a Bangalore-based events and communications company,
and IKYA Human Capital Solutions, an HR firm.
After months of discussions between IKEA officials and Indian
authorities, the company has been allowed to run cafes and restaurants
within its single-brand stores in India, but would not be able to sell
packaged food. The reason for the ban, announced in early 2013, was
that the single-brand retail policy, under which IKEA’s application had
been filed, disallowed retailing of food.
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Source:
Future Retail Ltd.
Pantaloon Retail Financial Performance
Future Retail Ltd., formerly Pantaloon Retail, is a
subsidiary of Indian industrial conglomerate Future Group
and a major Indian retailer. The company officially changed
its name in Mar 2013.
In the 18 months that ended on Dec 31, 2012, Pantaloon
Retail underwent major consolidation and realignment,
aimed at streamlining its business activities and dealing
with the consumption and economic slowdown that had
affected India in the period.
The company divested its investments in non-core areas
like financial services and demerged its highly successful
fashion & lifestyle format Pantaloons to Aditya Birla Nuvo.
The Competition Commission of India (CCI) approved the
deal in Dec 2012, livemint reported.
Under its revised strategy, the business of Future Retail
has been consolidated under three verticals – Hypermarket
Retail (including Home Improvement), Fashion and Food.
Three distinct companies were formed - Future Retail,
Future Lifestyle Fashions (FLF) and Future Ventures,
respectively.
In addition, the company carried out an extensive
renovation of a large number of stores to improve customer
experience and brand positioning.
During the 18 months that ended on Dec 31, 2012, the
company attracted over 433 million customer footfalls,
which meant that stores registered 24 million customer visit
each month.
Future Retail Quarterly Financial Performance
Company data; livemint.com;
Note: The financial results of the two accounting periods are not comparable.
67.72
39.42
2.73 0.77
18 months ended Dec 31, 2012 12 months ended Jun 30, 2011
Sales (Net of Taxes), INR bn Profit After Tax, INR bn
3,457.40
9,406.90
-94.60
24.70
3 Months Ended Jun 30, 2013 3 Months Ended Mar 31, 2013
Total Income From Operations, INR mn Net Profit (Loss) of the Period, INR mn
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Highlights
Source:
Reliance Retail
Reliance Retail Financial Data
Reliance Retail Performance
Reliance Retail, a wholly-owned subsidiary of Reliance Industries, and India’s second-largest retailer after Future Retail, was set up in 2006 in Mumbai. At the end of FY 2013 on Mar 31, 2013, the company operated 1,466 stores across 129 cities and over 9.0 million sq ft of retail area.
During its strategic phases, internally named Reliance Retail 1.0, 2.0 and 3.0, the company has established businesses under value, digital, lifestyle, jewelry and brands formats, the Business Standard reported in Jul 2013.
At the end of Reliance 3.0 on Mar 31, 2013, some 56% of Reliance Retail’s INR 108 bn revenue, came from its value and grocery chain segments.
At Reliance Retail’s Annual General Meeting in Jun 2012, the company said it would invest some INR 400 bn - 500 bn in the next three to four years, the Business Standard added.
The company has identified the cash-and-carry business as its growth driver, as it provides higher volumes and higher Return on Capital (RoC).
By opening its cash-and-carry store Reliance Market in Ahmedabad in Sep 2011, Reliance Retail became the first Indian retailer to enter the cash-and-carry business, dominated by multinationals such as WalMart, Metro and Carrefour.
Under Reliance Retail 4.0, the cash-and-carry store Reliance Market is to become a separate vertical.
Company data; the Business Standard;
5.84
2.76
5.81
-0.2
0.18
-0.24
2008 2009 2010
Net Turnover, INR bn Net Profit/Loss, INR bn
2011 2012
Total Revenue, INR bn 76.00 108.00
EBITDA, INR bn -0.34 0.78
No. of Jewelry Stores 37 51
No. of Brand Stores 49 68
No. of Digital Stores 93 139
No. of Fashion & Lifestyle
Stores 353 448
No. of Value & Other Stores 750 760
Total No. of Stores 1,282 1,466
Source: Company announcements, Business Standard (Jul 22, 2013);
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