SnacksMarket India May2013

ExecutiveSummary

SAMPLE Challenges RiseinPackagingCosts Unorganized U i dS Sector t and dLocal L l Players Competitive ts HealthConcerns Market

IndiansnacksmarketwasvaluedatINRXXbnin20__andisestimatedtoreachINRYYbnby haviorduetovariousfactorssuchasincreasingincomelevelsand busyurbanlifestyle, lif ductsaregainingpopularityamongstthem

Drivers RapidUrbanization Growing G i I Incomeand dC Consumption ti IncreasingWorkingWomenP on MarketingCampaigns GrowingRetailMarket ConvenienceFactor ExhibitionsandEvents ovation CorporateActivities InclusionofNutsasSnackingOption Drivers& Challenges Trends LaunchofVariousEthnicSnacks MajorPlayers Competition CompanyA CompanyB. CompanyC SNACKSMARKETININDIA2013.PPT 2 InnovativePromotionalCampaigns

IntroductionofHealth

MacroEconomicIndicators Introduction MarketOverview MarketSegmentation ConsumerInsi mport&Export Drivers&Challenges GovernmentRules&Policies GovernmentParticipation itiveLandscape Strategic g Recommendations Appendix SNACKSMARKETININDIA2013.PPT SAMPLE 3

EconomicIndicators(1/3) GDPatFactorCost:Quarterly INRtn 15 14 13 12 11 10 Q1 Q2 200910 a1 b1 c1 d1 a2 b2 c2 d2 SAMPLE a3 b3 c3 d3 b4 c4 d4 Q3 201011 201112 201213 Q4 InflationRate:Monthly y % 1.0 08 0.8 0.6 0.4 0.2 0.0 e2 e5 e1 e3 e4 Aug2012 Sep2012 Sep2012 Oct2012 Oct2012 Nov2012 Nov2012 Dec2012 Dec2012 Jan2013 4 SNACKSMARKETININDIA2013.PPT

Foodprocessingcanbesubsegmentedintonumerouscategories whichincludesnacksaswell SAMPLE MarketSegmentation FoodProcessing Y Marine Products Fruits& Vegetables X Z U A Beverages C p q BakedProducts Snacks r Others Focusofthereport SNACKSMARKETININDIA2013.PPT 5

TheIndiansnacksmarketisexpectedtowitnessremarkable growth SAMPLE

IndianMarket Overview(1/5) Snacksrefertothosefoodproductswhichareconsumedbetweenmealstosatisfyhungertemp opularityamongstconsumersduetovariousfactorssuchasincreasingincomelevels,hectic venienceassociatedwithitsconsumption Indiansnackmarketisquitecompetitiveinnature NCs,regionalandlocalplayersas wellastheunorganizedsector During20__,Indiansnac undINRX1bn MarketSi Size e&Gro Growth th INRbn 300 250 200 150 100 50 0 x6 y x4 x1 x2 x3 x5 20__ 20__ 20__ 20__ 20__ 20__ 6 SNACKSMARKETININDIA2013.PPT

inthenextfewyearswithincreasedconsumptionamongst consumers SAMPLE

IndianMarket Overview(2/5) Lotsofvarietiesofsnackingoptionsareavailablein theIndianmarketwhichisanother mpetitive Playerskeeponinnovatingwithflavorsas consumerswantvarietyandtaste Sn impulse l purchase h product d tand d consumersingeneralarenotloyaltoanyparticul MarketSegmentation(20__) OrganizedSector UnorganizedSector

Despitethepresenceoforganizedplayerssuchas PepsiCo,ITCandHaldirams,unorganized hemarket a1 Localandregionalplayersraisedmarketshare byinvadingthosemarketswher eofbiggerbrands Biggerplayersinitiallyfocusedonurban marketsanduponitssaturat ditsfocustowards otherlowertiermarkets SNACKSMARKETININDIA2013.PPT a2 7

Lotsofvarietiesofsnacksareavailableinthemarketand IndianMarket Overview(4/5) Snacksmarketisverydynamicaseventssuchasentryofnewplayersand launchofwidera rskeeponhappening Whenevernewproductsenteranycategory,marketsharesofmajorplayersget affected Th vemaintainedtheirtoppositions,but,theirmarketsharesgot reducedinthepastfewyear SAMPLE ChangeinMarketShareofMajorPlayers MarketShare(20 (20__) ) MarketShare(20 (20__) ) B6 B7 A B C D A2 A1 E F Others B2 B3 B1 B4 B5 A4 A5 A3 A6 SNACKSMARKETININDIA2013.PPT 8

Snacksarebroadlyclassifiedintotwosegments MarketSegmentation(1/3) Snacks Classification Indianmarketisfilledwithwide varietiesofsnacks,but,alloft ndertwobroadcategories SAMPLE Western Traditional MarketShareofVariousSnacks(20__) SegmentalShare(20__) f e g A a B C D E F Oh Others b1 a1 A B d b c SNACKSMARKETININDIA2013.PPT 9

Westernsnacksegmentisalreadyverypopularamongst consumers SAMPLE MarketSegmentation WesternSnacks(2/3) WesternSnacks Westernsnacksincludeproductssuchaschips,wafers,crisps andextrudedsnacks B PotatochipsaccountforthemajorshareinIndiansnacksmarket XX XX A A B Organized O ga edU Unorganized o ga edBreakup ea up (20__) SNACKSMARKETININDIA2013.PPT 10

ConsumerInsightsonSnacks(1/11) SampleSize 80

SAMPLE SurveyDuration& Period Quantitative RepresentationUsed 3Weeks March2013 Percentage P eofRespondents AgeWise(years) SampleSources SocialMediaWebsitesand OtherRelatedForums

Surveyonsnackswasconductedonsocial mediasitesandotherrelatedforums yhasbeenk allsurvey capturespecificinformationaccordingto requirements Thesurveyhasbeencond sta groupofgeneralconsumersheadingfrom majorIndiancitiesincludingMumbai,Delhi, rabad,Bangaloreamong others 1824 2530 3135 3640 ED 41&above C B A SNACKSMARKETININDIA2013.PPT 11

ConsumerInsightsonSnacks(2/11) Q:Doyouconsumesnacks? SAMPLE Options 1) Yes 2) No Q:Ifyoudontconsumesnacksatpresent,wouldyou liketotryitinfuture Options 1) Yes 2) No ConsumptionShareofSnacks B ShareofPotentialFutureConsumers D C A Yes No Yes No SNACKSMARKETININDIA2013.PPT 12

ConsumerInsightsonSnacks(4/11) Q:Whattypeofsnacksdoyouprefer? Options 1) X 2) Y SAMPLE Options 1) A 2) B Q:Ifyouconsumeboth,whichonedoyouprefer more? ConsumptionPattern % 80 70 60 50 40 30 20 10 0 PreferencewiseShareofBothCategory C A B Y A B X X Y Both SNACKSMARKETININDIA2013.PPT 13

ImportofMajorTypesofSnacks(1/2) ASnacks Volume INRmn 300 200 A 100 0 20__ 20__ 20__ P Q R D S 20__ C B Value 000unit 2,000 1,500 1,000 500 0 SAMPLE f e d c b MajorImportingNations ValueWise(2011) A B C a D E F BSnacks&Mixtures Volume INRmn 200 150 100 50 0 20__ __ G T F U 20__ __ V 20__ __ H W 20__ __ E Val ue 000unit 8,000 6,000 4,000 2,000 0 MajorImportingNations ValueWise(2011) P Q u p R S T t s r U q

Note:HSCode190190(Foodpreparationsbasedonmaltextract SaltedSnacks ),HSCode 190 inedbyswellingorroastingofcereals PackagedSnacks&Mixtures) SNACKSMARKETININDIA 14

Drivers&Challenges Summary

SAMPLE Challenges CompetitivePricePoints UnorganizedSectorandLocalPlayers RiseinPackagingCosts Health s Drivers RapidUrbanization GrowingIncomeandConsumption MarketingCampaigns Increasing i Working ki Women Population GrowingRetailMarket ConvenienceFactor SNACKSMARKETININDIA2013.PPT 15

Trends Summary SAMPLE ExhibitionandX ProductY CorporateActivities i ii KeyTrends

InclusionofAasSnackingOption LaunchofVariousQSnacks InnovativePromotionalCampaigns tion d of fPSnacks k SNACKSMARKETININDIA2013.PPT 16

CompetitiveBenchmarking(1/5) PublicTradingComparables(FY2012) SAMPLE CompanyA CompanyB xx xx xx xx MarketCapitalization(INRmn) SharePrice(INR) EV/EBITDA(x) xx xx EV/Revenue / (x) xx xx PERatio xx xx

Note:Top2PubliccompaniesbasedontheMarketCapitalization;MarketCapitalization,Share 013andPEratioisasof9/04/2013 SNACKSMARKETININDIA2013.PPT 17

CompetitiveBenchmarking(2/5) KeyRatiosofTop3Companies OperationalBasis(FY2011)(1/3) % 40 30 20 10 0 30.39 21.73 11.04 7.30 SAMPLE SAMPLE S OperatingMargin NetMargin 2 49 2.49 1.41 CompanyA CompanyB CompanyC xx SNACKSMARKETININDIA2013.PPT 18

Public:DomesticCompany PlayerA(1/5) CompanyInformation CorporateAddress TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange x xx xx xx xx xx xx CityA HeadOffice SAMPLE OfficesandCentres India ProductsandServices Category Products/Services KeyPeople RTEProducts xx N Name D i ti Designation OtherFoodProducts xx SNACKSMARKETININDIA2013.PPT 19

Public:DomesticCompany PlayerA(2/5) Financial i i lS Snapshot h Total Income INR mn 2000 1500 1000 500 0 SAMPLE K Ratios Key i Particulars d INR mn 150 100 Net Profit/Loss c

yoychange 2012 (201211) 3.31 6.73 5.22 7.25 2.22 7.92 1.89 4.90 7.37% 4.02% 6.52% 5.51% 8.50% 20.82% 6.67% 26 % 2011 2010 2009

ProfitabilityRatios OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmplo urnonWorkingCapital ReturnonAssets ReturnonFixedAssets 10.69% 10.75% 11.74% 12.76% 10.73% 28.74% 8.56% 30.92% 11.63% 12.08% 15.66% 13.2 2% 12.11% 28.25% 10.77% 33.44% 14.80% 7.61% 11.00% 9.02% 16.70% 56.05% 14.08% 41 .15% a b A 2009 B 2010 C D 50 0 2011 2012

FinancialSummary ThecompanyincurredanetprofitofINR63.7mninFY2012,ascompared tonetprofitof tedtotalincomeofINR1585.4mninFY2012, registeringanincreaseof19.7%overFY2011 ngmarginof7.37%inFY2012,adecrease of3.31percentagepointsoverFY2011 Thecompa oof0.32inFY2012,adecrease of7.22%overFY2011 CostRatios Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales) 3.47 5.78 0.24 92.50% 33.11% 0.82% % 89.03% 27.33% 1.06% % 87.70% 22.91% 1.21% % 84.70% 25.64% 1.74% % LiquidityRatios CurrentRatio CashRatio

0.43% 14.77% 2.49 0.53 2.48 0.63 4.42 1.76 2.60 1.09 LeverageRatios DebttoEquityRatio Debt b toCapital i lRatio i InterestCoverageRatio 7.22% 5.46% 12.08% 0.32 0.24 9.10 0.30 0.23 10.35 0.01 0.01 10.14 0.02 0.02 8.78 KeyFinancialPerformanceIndicators Indicators MarketCapitalization(INRmn) TotalEnterpriseValue(INRmn) EPS(INR) PERatio(Abs) Value(dd/mm/yyyy) XX XX XX XX

EfficiencyRatios FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalE oyedTurnover 23.09% 14.00% 6.29% 5.98% 14.65% 3.47 0.89 1.66 2.78 1.02 2.82 0.78 1.56 2.62 0. 89 2.72 0.88 1.78 2.30 1.02 2.69 0.92 2.26 3.66 1.13 Improved Decline SNACKSMARKETININDIA2013.PPT 20

Public:DomesticCompany PlayerA(3/5) KeyBusinessSegments TradedGoods 100% 50% 0% SAMPLE 100% KeyGeographicSegments India Q P S R T U Exports ProcessedandPreservedFoods C D E F A B 50% 0% 2009 2010 2011 2012 2009 2010 2011 2012 BusinessHighlights Description News Overview XX SNACKSMARKETININDIA2013.PPT 21

Public:DomesticCompany PlayerA(4/5) BusinessHighlights Description News SAMPLE GlobalPresence XX Quality Q yAssurance XX E Expansions i XX SNACKSMARKETININDIA2013.PPT 22

Public:DomesticCompany ITCLtd. SWOTAnalysis (5/5) SAMPLE xx xx S O xx W T xx SNACKSMARKETININDIA2013.PPT 23

StrategicRecommendations(1/4) Product SAMPLE Price XX XX Promotion PlaceofDistribution XX XX SNACKSMARKETININDIA2013.PPT 24

StrategicRecommendations(3/4) A SAMPLE B XX O T H E R S T R A T E G I E S XX C XX SNACKSMARKETININDIA2013.PPT 25

Appendix Ratio OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity(ROE) ReturnonCapita urnonWorkingCapital ReturnonAssets ReturnonFixedAssets OperatingCosts(%ofSales) A onCosts(%of Sales) InterestCosts(%ofSales)

Calculations (Operating Income/Revenues)*100 (NetProfit/Revenues)*100 (IncomeBeforeTax/Revenues tIncome (N I /Shareholders Sh h ld Equity)*100 EBIT/(TotalAssets Current Liabilit EBIT/WorkingCapital)*100 Ratio CurrentRatio

Calculations CurrentAssets/Current Liabilities {(Cash&BankBalance+ MarketableSecurities)/Curr s)} TotalLiabilities/Shareholders E it Equity {TotalDebt/(Shareholders Equity+To T/InterestExpense Sales/FixedAssets Sales/TotalAssets Sales/CurrentAssets Sale s/(ShareholdersEquity+ TotalDebt) CashRatio q y DebttoEquity DebttoCapitalRatio InterestCoverageRatio FixedAssetTurnover

(EBIT/TotalAssets)*100 (EBIT/FixedAssets)*100 (OperatingExpenses/Sales) *100 (A enses/Sales) *100 (InterestExpenses/Sales)*100 AssetTurnover CurrentAssetTurnover alTurnover CapitalEmployedTurnover SNACKSMARKETININDIA2013.PPT 26

SourcesofInformation SecondaryResearch PrintMedium LeadingNewspapers Journals/Magazines BusinessMagazines

PrimaryResearch Interviews LeadingIndustryVendors IndustryStakeholders IndustryExperts SurveysConductedinSocial ologyFocused Forums ElectronicMedium CompanyWebsites GovernmentWebsites/Resources OnlineMagazines OnlineJournals/Articles miumDatabases SocialNetworkingSpace SNACKSMARKETININDIA2013.PPT 27

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