Food and Beverage Sector in India Monthly Update April 2013

7/30/2019 Food and Beverage Sector in India Monthly Update April 2013

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Food and Beverage Sector in

India

Monthly Update

April 2013



Sector Name – Monthly Update

Top Story

Government to decontrol sugar industry partially

Food Ministry is on the verge of announcing its decision regarding various changes that arelikely to take place in the regulations controlling sugar mills. The Ministry has decided to give

freedom to the mills to sell sugar in the open market and also remove their obligation to

supply the sweetener at subsidized rates for ration shops.

Other controls on the sugar sector such as pricing, cane reservation area and minimum

distance between two mills have been left to the respective state governments. The Food

Ministry will come up with all these notifications by the 3rd week of Apr 2013.

India is the world's second biggest producer and largest consumer of sugar. So, this kind of initiative can help the players of this industry to grow and enhance their business further.

News Update

General Supply shortage leads to price rise of tender coconuts

Short supply of tender coconuts this summer has lead to price rise of packaged tender

coconut water by 20‐30%. Coconut production in southern states of India has been hit byextended dry weather conditions this year. In addition to this other factors such as high

power and transportation costs are also forcing players to go for price hikes.

One of the major players Anu Coco Food Products has raised the price of a 200 ml bottle by

INR 3 to INR 28 from 1st Apr. But, not all players are going for sudden price hikes fearing

decrease of sales volume as a result of it. They might go for price hikes gradually during thepeak months of summer.

Another launch by Dunkin Donuts

Dunkin Donuts has launched its signature international ice blended cold coffee called

‘Dunkaccino’ in its Indian outlets. This new launch has been done in response to the growingcompetition in the Indian food and beverage industry.

The product is prepared by combining Dunkin espresso coffee with ice, milk and flavors. Inaddition to the existing variant of classic Dunkaccino, the beverage will be available in choco,

frosted mint, caramel butterscotch and muesli flavors. Recent entry of Starbucks in the

Indian food and beverage industry has made the market more competitive in nature and




Dunkin Donuts being another chief player of this sector has strategically modified itsbeverages menu to combat with this situation.

PepsiCo India

launches

another

product

in

the

Indian

food

and

beverage

market

PepsiCo India, one of the major players of the Indian food and beverage sector has recentlylaunched a new product called ‘Pepsi Atom’ under its cola portfolio. For promoting the

product, PepsiCo has roped in bollywood actor Sushant Singh Rajput as its brand

ambassador. The product will be available in 200 ml returnable glass bottles, 250 ml cansand 500 ml PET bottles at an introductory price of INR 10, 15 and 25 respectively.

Taste and preferences of the consumers of the Indian food and beverage market varies fromthe global ones. Pepsi Atom has been created specially for the Indian market, in collaboration

with PepsiCo's global innovation team.

Vadilal to

launch

premium

ice

cream

brands

Leading ice cream brand Vadilal is on the verge of launching high‐end products this summer.

Vadilal which is a renowned player of the Indian food and beverage sector has alreadylaunched products such as badabite, flingo, gourmet and the ice trooper range for the kids

segment last year.

The new products will be launched under the ‘Artisan’ range and will offer ice cream log, ice

cream pastry, ice cream sandwich, cookie pie sandwich, ice cream bar (called as Sneak‐a‐Bar)

and kewara mataka kulfi. In addition to this, the company will also launch a new range of ice

candies made with real fruit pulp in exotic flavors such as cranberry, kiwi and mixed fruit under the brand name 'Falala'. The food and beverage sector will be witnessing wide range of

new product addition by Vadilal this year.

Moving Cart to launch mobile restaurant The Moving Cart, a well known entertainer in providing mobile restaurant facilities has

planned to launch first of its kind double decker mobile restaurant ‘The Moving Cart’ inMumbai.

The multi‐cuisine restaurant will have open to sky upper deck and fully air conditioned

lower deck. In addition to this, the lower deck will have luxurious sitting arrangements and a

perfect ambience created by variation of lights and soft music. Tourism industry is growingremarkably and players of this industry are trying to provide tourists with an exclusive

experience on their visit to Maharashtra.

Milestone 100 launched by SOM Distilleries Leading breweries company, SOM Distilleries and Breweries Ltd. (SDBL) has launched a new

brand of whiskey 'Milestone 100'. The new product comes under the premium whiskeysegment.




The whisky brand ‘Milestone 100’ has been positioned as a beverage specially made forachievers, who have aspirations to achieve new milestones in their life and live life with the

mantra of ‘Thodda Aur’. The number 100 signifies that the product is composed of 100%

purest form of grain alcohol. To achieve perfect combination of smoothness and strength it has been blended with finest blend of triple distilled 100% premium grain whiskey withimported 100% scotch malts matured exclusively in oak casks from Scotland.

News Update

Regulatory India-EU FTA opposed by the Indian Dairy Sector

The proposed India‐EU free trade agreement (FTA) is facing strong opposition from the dairy

industry which is led by the country’s largest milk cooperative that owns the Amul brand.The sector feels that this agreement would lead to procurement of subsidized dairy products

from Europe and this will have an adverse effect on the domestic dairy industry.

Government had always encouraged the co‐operative model in the dairy sector, but, now,subsidized European exports under this FTA might lead to unfair competition in the nation.

Farmer body Bharatiya Kisan Union (BKU) has also opposed this proposed trade pact.

News Update

Expansion Plans Hindustan Coca Cola announces investment plan

Hindustan Coca Cola Beverages Pvt. Ltd. (HCCBPL), the bottling partner of one of the major

player of the Indian food and beverage industry Coca Cola India has planned to invest anamount of INR 6000 mn for setting up its new plant in Uttarakhand. The new facility will be

involved in manufacturing carbonated beverages, juice and fruit based drinks.

The investment will take place in two phases and the new plant will be built up on 60 acres

of land in Vikasnagar tehsil of Dehradun. Company officials of HCCBPL and StateInfrastructure and Industrial Development Corporation of Uttarakhand Ltd (SIDCUL) havealready signed an agreement for this. This new investment by HCCBPL will further

strengthen its position in the Indian food and beverage industry.




Pailan Group expands its footprint in the Indian food and beverage sector Pailan Group, the Kolkata based food processing company has entered the Maharashtra

market with its popular product ‘Poto’ potato flakes and some other new products. The range

of new products includes ready to cook Aloo Tikki, Aloo Bonda and Aloo Cutlet.

So far, Pailan Group has experienced success in all the locations where it has launched its

various products. By introducing the products in different states of India, Pailan Group is

expanding its presence in the Indian food and beverage market.

Industry Expert Speak

Mobile restaurant launched – Dr Jagdish Patil, MD, Maharashtra Tourism Development Corporation Ltd. “The tourism industry is booming and there are new concepts launched by various

organisations. It is time to provide tourists with an exclusive experience on their visit to

Maharashtra. This initiative will give Mumbaikars and other tourists visiting Mumbai a

remarkable experience of having food around Marine Drive”

Vadialal launches premium products – Rajesh Gandhi, MD – Vadilal Industries Ltd. “Till recently Vadilal was known for its mass‐based mid‐end and low‐end ice creams. Whilewe continue to be a market leader in this segment, we formulated a strategy to focus on

higher‐end products a few years back and started with the Badabite, Flingo and Gourmet

launches in 2011 and followed it up with the Ice Trooper kids range last year”

New whisky brand launched – Deepak Arora, CEO – SOM Distilleries and Breweries Ltd. “Our Company has completed 25 years of successful operations. Now we have entered into

the premium segment by introducing Milestone 100 premium whiskey. As the name depicts,MILESTONE 100 is especially made for achievers, who have aspirations to achieve new

milestones in their life, that live life with the mantra of‐"Thodda Aur" and 100 denotes the100% purest form of grain alcohol”




Transactions (Feb 2013 – Apr 2013)

Date

Buyer

Target

Deal

Size

(INR mn) % stake

Deal

Status Type

of

Transaction

26th Apr,2013

Sarona Asset

Management andSEAF

Agribusiness

Khyati Foods Ltd. 149.2 N.A. Completed PE

10th Apr,2013

Herba Foods Ltd. Taraori Rice Mills 772.8 100% Completed M&A

4th Apr,

2013

Hassad Food

Company

Bush Foods

Overseas Pvt. Ltd.5,329.4 51% Completed M&A

15th Mar,

2013

Omega Ag‐Seeds

Ltd.

Gayatri Sea Foods

and Feeds Pvt. Ltd.N.A. N.A. Pending M&A

6th Mar,

2013

Bennett, Coleman

& Company Ltd.

Dalmia Continental

Pvt. Ltd.N.A. 12% Completed M&A

6th Mar,

2013

Fabindia Overseas

Pvt. Ltd.

Organic India Pvt.

Ltd.150 40% Completed M&A

14th Feb,

2013Milestone Capital

Capricorn FoodProducts India Pvt.

Ltd.

500 N.A. Pending PE

4th Feb,

2013

Nestle India Pvt.

Ltd.

Indocon Agro andAllied Activities Pvt.

Ltd.N.A. 26% Pending M&A

4th Feb,2013

Temptation FoodsLtd.

Taib SecuritiesMauritius Ltd., HBS

India Investment

Mauritus Ltd. andIndia Max

Investment FundLtd.

10,954.3 N.A. PendingPrivate

Placement




Annual Financial Results – Revenue (INR mn)

Companies

FY ‘09

FY

‘10

FY

‘11

FY

‘12

Anik Industries Ltd. 10,209.80 12,232.80 12,788.30 16,075.70

Balrampur Chini Mills Ltd.* 17,551.00 N.A. 19,843.80 23,095.50

Bannari Amman Sugars Ltd. 6,963.60 8,783.20 8,255.40 11,795.10

Britannia Industries Ltd. 34,212.30 37,748.60 45,931.10 54,635.30

Dabur India Ltd. 28,122.40 33,958.00 41,045.10 53,054.20

Dhampur Sugar Mills Ltd* 9,473.60 15,015.27 17,794.52 15,375.20

Godrej Industries Ltd. 36,121.28 37,080.50 44,989.50 57,100.30

Hatsun Agro Products Ltd. 10,135.69 11,415.58 13,557.32 16,035.37

Heritage Foods (India) Ltd. 7,967.54 9,003.85 10,960.86 13,768.51

Hindustan Unilever Ltd. 166,639.84 180,319.30 200,225.50 234,363.30

IFB Agro Industries Ltd. 2,831.48 2,906.74 4,499.83 5,846.29

ITC Ltd. 165,561.40 191,358.70 225,747.00 265,517.90

Kwality Dairy India Ltd. 5,828.03 10,541.25 16,080.36 23,894.81

Marico Ltd. 23,884.20 26,607.60 31,349.90 40,082.80

Radico Khaitan Ltd. 6,960.29 8,355.51 9,964.58 10,977.69

Ruchi Soya Industries Ltd. 127,423.20 143,926.26 182,311.76 302,464.37

Shree Renuka Sugars Ltd.* 28,159.89 77,002.51 86,623.00 88,876.03

Tata Coffee Ltd. 11,184.31 12,896.27 13,013.61 15,489.97

United Spirits Ltd. N.A. N.A. 73,761.83 91,865.00




Venky's (India) Ltd. 5,692.64 7,054.71 8,520.08 9,522.70

* Change in Financial Year Ending

Annual Financial Results – Income (INR mn)

Companies FY ‘09 FY ‘10 FY ‘11 FY ‘12

Anik Industries Ltd. ‐171.00 ‐70.20 ‐89.80 N.A.

Balrampur Chini Mills Ltd.* ‐45.00 64.60 252.37 N.A.

Bannari Amman Sugars Ltd. ‐279.68 ‐141.03 ‐118.47 ‐16.38

Britannia Industries Ltd. ‐357.20 55.14 11.05 92.00

Dabur India Ltd. 20,036.08 21,566.30 22,960.50 27,906.60

Dhampur Sugar Mills Ltd* 1,887.20 2,316.70 2,864.40 3,171.10

Godrej Industries Ltd. 118.68 27.89 187.46 266.02

Hatsun Agro Products Ltd. 1,653.90 2,130.70 ‐2,943.90 N.A.

Heritage Foods (India) Ltd. ‐260.00 ‐17.80 ‐410.70 N.A.

Hindustan Unilever Ltd. 3,905.00 5,010.80 5,685.70 6,448.90

IFB Agro Industries Ltd. 954.86 1,749.00 2,251.66 1,194.24

ITC Ltd. 169.87 280.02 259.25 365.17

Kwality Dairy India Ltd. 33,245.90 41,681.80 50,179.30 62,581.40

Marico Ltd. 130.53 44.25 178.24 265.47

Radico Khaitan Ltd. 65.36 415.40 728.01 636.60




Ruchi Soya Industries Ltd. 1,514.85 1,031.80 1,343.50 1,995.50

Shree Renuka Sugars Ltd.* 129.31 289.19 399.32 408.92

Tata Coffee Ltd. 93.84 179.47 459.43 911.52

United Spirits Ltd. 250.77 ‐90.60 ‐131.60 ‐336.40

Venky's (India) Ltd. 256.01 459.98 ‐335.70 ‐1.40

* Change in Financial Year Ending

Quarterly Financial Results – Revenue (INR mn)

Companies Jan-Mar

2012

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Anik Industries Ltd. 6038.9 3174.9 3001.7 2,924.80

Balrampur Chini Mills Ltd. N.A. N.A. N.A N.A

Bannari Amman Sugars Ltd. 3,100.8 3,625.3 2,980.3 3,383.6

Britannia Industries Ltd. N.A. N.A. N.A N.A

Dabur India Ltd. 13,858.3 14,620.0 15,372.2 16,307.2

Dhampur Sugar Mills Ltd 4,387.8 3,496.8 3,351.4 3,156.6

Godrej Industries Ltd. 15,563.4 17,889.3 19,461.2 16,805.9

Hatsun Agro Products Ltd. 4,329.9 4,897.1 5,284.0 N.A

Heritage Foods (India) Ltd. 3,790.0 4,080.3 3,975.9 3,874.8

Hindustan Unilever Ltd. N.A. N.A. N.A N.A

IFB Agro Industries Ltd. 1503.2 1262.8 1,429.3 1,011.3




ITC Ltd. N.A. N.A. N.A N.A

Kwality Dairy India Ltd. 7797.1 8,152.1 8,893.1 N.A

Marico Ltd. 9,273.9 12,672.1 11,558.9 11,639.9

Radico Khaitan Ltd. 2,697.3 3,038.3 2,881.0 3,175.9

Ruchi Soya Industries Ltd. N.A. N.A. N.A N.A

Shree Renuka Sugars Ltd. 16,610.0 N.A. N.A N.A

Tata Coffee Ltd. 3,943.5 4,077.4 4,705.3 4,083.9

United Spirits Ltd. 22,708.9 24,343.0 28,629.0 28,391.0

Venky's (India) Ltd. 2,674.9 3,147.8 3,348.4 3,492.2

Quarterly Financial Results – Income (INR mn)

Companies

Jan-

Mar

2012 Apr

-

Jun

2012 Jul

-

Sep

2012 Oct

-

Dec

2012

Anik Industries Ltd. 88 20.7 18.8 15.4

Balrampur Chini Mills Ltd. N.A. N.A. N.A. N.A

Bannari Amman Sugars Ltd. 643.0 282.0 501.7 379.8

Britannia Industries Ltd. N.A. N.A. N.A. N.A.

Dabur India Ltd. 1,705.1 1,496.0 2,037.0 2,104.9

Dhampur Sugar Mills Ltd 223.2 64.1 108.0 53.3

Godrej Industries Ltd. 427.2 414.5 766.2 1,794.4

Hatsun Agro Products Ltd. 28.2 139.0 96.6 N.A




Heritage Foods (India) Ltd. 29.3 84.5 144.8 121.6

Hindustan Unilever Ltd. N.A. N.A. N.A. N.A.

IFB Agro Industries Ltd. 2.7 54.4 97.3 70.3

ITC Ltd. N.A. N.A. N.A. N.A.

Kwality Dairy India Ltd. 387.9 290 248.2 N.A.

Marico Ltd. 697.0 1,238.4 858.7 1,022.9

Radico Khaitan Ltd. 44.7 211.2 220.6 183.8

Ruchi Soya Industries Ltd. N.A. N.A. N.A. N.A.

Shree Renuka Sugars Ltd. ‐719.0 N.A. N.A. N.A.

Tata Coffee Ltd. 288.3 281.8 368.5 259.8

United Spirits Ltd. 26.2 ‐394.0 2,050.0 1,388.0

Venky's (India) Ltd. 181.6 201.3 23.1 ‐143.2




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Food and Beverage Sector in India Monthly Update April 2013

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