2 nd largest arable land in the world. Largest producer of pulses, milk, tea etc. Largest livestock population. Rising consumption expenditure

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3 2 nd largest arable land in the world India has a second-largest arable land resources in the world. With 20 agri-climatic regions, all 15 major climates in the world exist in India. The country also possesses 46 of the 60 soil types in the world Largest producer of pulses, milk, tea etc. India is the largest producer of pulses, milk, tea, cashew, mangoes, and buffalo meat; and the second-largest producer of tea, wheat, sugarcane and rice Largest livestock population India has the largest livestock population across the globe which is equal to 548 million, including 210 million cows,111 million buffaloes, 154 million goats and 73 million sheep. The segment contributes about 25 per cent to the country s farm GDP Rising consumption expenditure Consumption expenditure in FY13 was USD1.1 trillion; it is likely to reach USD3.6 trillion by 2020 Favourable location for exports Strategic geographic location and proximity to food importing nations favour India in terms of exporting processed foods Source: World Travel and Tourism Council, Directorate of Statistics, Aranca Research Note: GDP- Gross Domestic Product

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5 2012 Domestic food processing industry: USD135 billion Strong Growing demand demand growth Demand growth for processed food has been rising with growing disposable income, urbanisation, a young population and nuclear families Household consumption is set to double by 2020 Changing lifestyle and increasing spend on health and nutritional foods Advantage India Increasing investments Government expects USD21.9 billion of investments in food processing infrastructure by 2015 Investments, including FDI, will rise with strengthening demand and supply fundamentals Launch of Infrastructure Development scheme to increase investments in food processing infrastructure Food processing hub India benefits from a large agriculture sector, abundant livestock, and cost competitiveness Investment opportunities will arise in agriculture, food infrastructure, and contract farming Diverse agro-climatic conditions making it suitable for practicing different crops Policy support Sops to private sector participation; 100 per cent FDI under automatic route Agri Export Zones have been set up; under the government s Vision 2015 plan, mega food parks to be established Approval of National Mission on Food Processing 2015E Domestic food processing industry: USD200 billion Notes: 2015E Estimate for 2015; Estimates are from UBM India Pvt Ltd press release, FDI Foreign Direct Investment

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7 Food processing Fruits and vegetables Milk and milk products Meat and poultry Marine products India is the world s 2 nd largest producer of fruits and vegetables; production to rise to 377MT by 2021 India is the largest producer of milk in the world, with the production of MT in FY13. It is expected that the production of milk will be139.7 MT in FY14 India is the largest producer of buffalo meat (3.7 MT in 2013) and the second largest producer of goat meat (0.16 MT in 2013). It is world s third largest egg producer (6.1 million) and sixth largest producer of broiler meat (2.39 million tonnes) With 9.1MT production in FY13, India is the second largest producer of fish in the world Grain processing India produced about MT of food grains in FY13. It is MT* for FY14 Consumer food Among the fastest growing segments in India; it includes Source: Indiabusiness.nic.in, Ministry of Agriculture, Directorate of Statistics, APEDA, Indiastat, Meat & Poultry Processing Board, FAOSTAT, Assocham, Department of Animal Husbandry, Dairying & Fisheries Notes: FY Indian Financial Year (April March), E - Estimate, *- 3rd Estimate, MT - Million Tonnes Packaged food Aerated soft drinks Packaged drinking water Alcoholic beverages

8 The food processing industry is one of the largest industries in India and ranks fifth in terms of production, consumption and exports With an estimated value of USD181 billion in FY13, the food processing sector is further estimated to expand at a CAGR of 10 per cent by The industry contributed 9.8 per cent to India s GDP manufacturing in 2013 Contribution of food processing industry in manufacturing (FY13) Food processing segments (FY12) 9.8% 24.5% Meat, Fish, Fruits, Vegetables and Oil Beverages Food Processing Other 5.0% 10.8% 40.2% Grain Mill Products Dairy Products 90.2% 19.6% Other Products Source: Ministry of Food Processing Industries (MOFPI), Annual Report MOFPI ( ), Aranca Research

9 Major players Key activities Inputs Production Procurement and storage Processing Retailing Seeds, fertilizers and farm equipment Farmers, cooperatives and private companies Warehouses, cold storage and silos Grading, sorting, milling and packing Retail shops, malls, cash and carry National Seeds Corporation Limited, Cargill and Advanta India Ltd Farmers, Amul, ITC, Pepsi, Hindustan Unilever Ltd Food Corporation of India, NCMSL, Arshiya International ITC ltd, Cargill, Adani Enterprises, Olam International General Merchant Stores, Bharti- Walmart, Future Retail, Aditya Birla Retail Limited Source: MOFPI, Aranca Research Note: NCMSL - National Collateral Management Services Limited

10 Food processing is an important segment in terms of contribution to GDP and share in the agriculture and manufacturing sectors According to MOFPI, in FY12, capital investments in India s food processing sector increased a significant 19.8 per cent over the last year During FY06 13, the FPI GDP expanded at a CAGR of 6.3 per cent The industry is expected to contribute 6.5 per cent to the country s GDP by FY15 In FY12, India had 36,881 registered food processing units GDP (USD billion) and y/y growth of food processing industry FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 GDP- Food processing industry 30% 25% 20% 15% 10% 5% 0% -5% Growth - right axis -10% -15% Source: Ministry of Food Processing Industries ( MOFPI), The Economics Times, Aranca Research Notes: FPI - Food Processing Industry, Growth negative due to currency translation impact

11 Data from the Index of Industrial Production (IIP) suggest strengthening growth momentum in food products and beverages in FY09 12 Though growth in the food products and beverages subsegment slowed to 2.9 per cent in FY13 compared with 15.4 per cent in FY12, it surpassed the growth posted by the overall manufacturing sector in the fiscal year Annual growth of food products and beverages sector (in terms of IIP, per cent change) In FY14, the IIP for food products and beverages declined; however, it registered a growth of 5.0 per cent MoM during May FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Annual growth of Food products & beverages as per IIP Annual growth of overall manufacturing sector as per IIP Source: Ministry of Statistics and Programme Implementation (MOSPI), Aranca Research Notes: ASI Annual Survey of Industries, IIP Index of Industrial Production

12 The unorganised sector accounts for 42 per cent of India s food processing industry Unorganised sector has the largest share in the sector (FY13) The sizeable presence of small-scale industries points to the sector s role in employment generation Though the market falls under the unorganised sector in the country, the organised sector has a larger share in the secondary processing segment than the primary one 25% 42% Unorganised sector Small scale industries Rice mills account for the largest share of processing units in the organised sector Organised sector 33% Source: Ministry of Food Processing Industries (MOFPI), Annual Report MOFPI ( ), Aranca Research

13 Policymakers have identified food processing as a key sector in encouraging labour movement from agriculture to manufacturing As per Annual Survey of Industries for , there were 1.7 million persons engaged in registered food processing sector During FY08 12, employment in the registered food processing sector rose at a CAGR of 4.2 per cent The sector employs 13 million people directly and 35 million people indirectly Employment generation in registered food processing sector (in million) 1.5 CAGR: 4.2% FY08 FY09 FY10 FY11 FY12 Source: Ministry of Food Processing Industries, Aranca Research Note: FY Indian Financial Year (April March)

14 Changing consumer tastes Wide array of products, coupled with increasing global connectivity, has led to a change in the tastes and preference of domestic consumers This trend has been bolstered by rising incomes, increasing urbanisation, a young population, and the emergence of nuclear families Entry of international companies Liberalisation and growth of organised retail have made the Indian market more attractive for global players With a large agriculture sector, abundant livestock, and cost competitiveness, India is fast emerging as a sourcing hub of processed food Rising demand on Indian products in international market Strategic geographic location and continuous increase in raw material production help India to supply cheaper products to other countries. India s exports of processed food and related items rose at a CAGR of 33.2 per cent during FY11 14 Note: FY Indian Financial Year (April March)

15 Fruits, vegetables, processed grain Milk and milk products Meat, poultry and marine products Alcoholic beverages Consumer food Aerated soft drinks and packaged drinking water Packaged food Source: Company website, Aranca Research

16 Uttarakhand: Basmati rice, aromatic and medicinal plants Jammu & Kashmir: Apples, walnuts Himachal Pradesh: Apples Punjab: Basmati rice, vegetables Uttar Pradesh: Basmati rice, potatoes, mangoes, vegetables Assam: Ginger Rajasthan: Coriander, cumin Gujarat: Mangoes, vegetables, sesame seeds West Bengal: Pineapple, litchi, Darjeeling tea, vegetables Madhya Pradesh: Onions, garlic, seed spices, lentils Maharashtra: Grapes, grape wine, mangoes, flowers, onion Andhra Pradesh: vegetables, mango pulp, grapes, gherkins Karnataka: Gherkins, rose, onions, flowers, vanilla Tamil Nadu: Flowers, mangoes, cashew nuts Source: APEDA, Aranca Research

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18 Competitive Rivalry Due to a large influence of unorganised sector in the industry, the competition is intense Existence of brand loyalty in certain products towards existing firms such as Amul in case of butter limits competition in these products Threat of New Entrants (Medium) Threat of New Entrants Substitute Products Capital Intensive - High investments are required to set up processing units; this acts as an entry barrier for new players No close substitutes of products such as milk, fresh fruits and vegetables are available in the market Bargaining Power of Customers (High) Competitive Rivalry (Medium) Substitute Products (Low) Bargaining Power of Suppliers Low bargaining power of suppliers as the population largely relies on unorganised sector for products such as milk and vegetables Bargaining Power of Customers Tastes and preferences of consumers in certain products change and hence brand loyalty is low in these products Low switching cost makes consumers switch from one supplier to another Bargaining Power of Suppliers (Low)

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20 Rising business and product innovation Companies have been moving up the value chain; for example, cooperatives are transitioning from being pure producers of milk to offering a wide range of dairy products Both domestic and global firms have been focusing on product innovation to cater to domestic tastes, while also introducing international flavours; for example Ruchi Soya is innovating by entering into the ready-to-cook segment to meet the needs of people with significant time constraint to provide a rich source of protein in the breakfast category Low - cost price strategy Low-cost price strategy is adopted so as to make the product affordable to the consumers by guaranteeing them value for money. The main aim is to provide quality products to the consumers at minimum cost, e.g., Amul Milk Parle and Sunfeast works on their pricing and costs so as to make the products available at economical prices Joint Ventures Many global and Indian companies are getting into joint ventures to make global products available in India. Starbucks and TATA Alliance is one of the largest joint ventures Bharti Enterprises and Delmonte Pacific Ltd is the largest fresh baby corn exporter in India Source: Aranca Research

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22 Strong domestic Growing demand demand Rising export Strong opportunities government support Supply-side advantages Policy support Rising disposable incomes India s greater integration with the global economy Favourable climate for agriculture; wide variety of crops Vision 2015 plan targets trebling of food processing sector Growing middle class, urbanisation, a young population Increasing exports with advantage of proximity to key export destinations Large livestock base aids dairy and meat processing sector Mega food parks, Agri Export Zones to attract FDI and aid infrastructure Changing lifestyles and food habits Large domestic Expected spike in market global demand as emerging markets grow at a fast pace Inland water bodies, long coastline help marine products Approval of National Mission on Food Processing Source: Ministry of Agriculture, Aranca Research

23 F 2016F 2017F 2018F 2019F Rising disposable incomes Strong growth in per-capita income has resulted in greater demand for food items Incomes have increased at a brisk pace in India and would continue rising considering the country s strong economic growth prospects. Nominal per capita income is estimated (IMF) to have recorded a CAGR of 9.2 per cent over There has also been a shift in demand: From carbohydrates to meat products (in line with the various phases of economic growth); and To convenience foods, and organic and diet foods Strong economic growth since the 1990s has led to: Rapid urbanisation and a growing middle class; and Nuclear families and dual income households Coupled with a young population and increasing media penetration, this has led to a surge in demand for packaged food, alcoholic and non-alcoholic beverages, snacks, savouries, etc. 2,500 2,000 1,500 1, Rising per-capita income in India GDP per capita, current prices (USD) - LHS 30% 25% 20% 15% 10% 5% 0% -5% Growth Rate - RHS Source: IMF WEO April 2014, Aranca Research Notes: E - Estimate, F - Forecast

24 During FY11 14, India's Exports of processed food and related products (inclusive of animal products) increased at a CAGR of 33.2 per cent to USD22.0 billion Main export destinations for food products have been the Middle East and Southeast Asia Exports in USD billion CAGR: 33.2% FY11 FY12 FY13 FY14 Source: Agricultural & Processed Food Products Export Development Authority (APEDA), Aranca Research Note: FY Indian Financial Year (April March)

25 Basmati Rice Non - Basmati Rice Guargum Wheat Other Cereals Misc. Processsed Items Fresh Vegetables Meat & Preparations Rising demand from rest of the world Share of food processing exports in country s total food exports was 32 per cent in FY14 In FY14, the share of cereals was 48 per cent and that of animal products was 24 per cent Growth has primarily resulted from Greater exports to advanced economies; and More demand from emerging/developing economies as they experience strong growth Exports of key processed products (USD millions, FY14) Shares in APEDA exports (FY14) 6,000 5,000 4,000 3,000 2,000 1,000-4,866 3,564 2,652 3,919 2,876 1,979 1,934 1,566 4,481 3,292 1,505 1,197 1, % 2% 7% 18% 48% Cereals Animals Products Fresh Fruits & Vegetables Processed Fruits & Vegetables Floriculture 24% Other Processed Foods Source: APEDA Agri Exchange, Aranca Research

26 Vietnam Iran USA Saudi Arab Bangladesh UAE Malaysia Indonesia Benin Egypt Supply-side advantages Major destinations of processed food and agricultural related product exports in FY14 (USD million) Growth in food product exports has been aided by: Significant improvements in product and packaging quality; and Greater private sector participation India has a location advantage it is geographically close to key export destinations (Middle East, South East Asia) Vietnam is the top destination for processed products from India Iran, the US, Saudi Arab, and Bangladesh are the other major destinations for Indian exports France, Italy, South Africa, and Spain are the top destinations for India s exports of processed marine products 4,000 3,000 2,000 1, ,120 2,117 1,920 1,713 1,227 1, Source: Ministry of Food Processing Industries, APEDA, Ministry of Commerce & Industry, Aranca Research

27 India s comparative advantage lies in its favourable climate, large agriculture sector and livestock base, long coastline, and inland water resources India also has an edge in cost of production compared to its competitors in Asia and the developed world Milk (Cow & Buffalo) Production (million tonnes) FY13** Global share*(%) Global rank* % 1 In 2013, milk production was million tonnes and tea production was 1.1 million tonnes Arable land (million hectares) Area under irrigation (million hectares) Coast line ('000 kilometers) Units Global rank* Cattle (million) Pulses % 1 Buffalo meat % 1 Bananas % 1 Mangoes and Guavas % 1 Tea % 2 Rice (Paddy) % 2 Sugarcane ~24.0% 2 Wheat 92.5 ~10.0% 2 Source: World bank, FAOSTAT, CIA World Fact book, Ministry of Agriculture, Tea Board, APEDA, Directorate of Statistics, Aranca Research Notes: * Data for Global share is taken from different sources * - For the year 2012; ** - Provisional 2013

28 Encouragement to private sector 100 per cent export-oriented units allowed to sell up to 50 per cent of their produce in the domestic market Export earnings exempt from corporate taxes Tax incentives and other sops Import duty scrapped on capital goods and raw materials for 100 per cent export-oriented units 100 per cent tax exemption for five years, followed by 25 per cent tax exemption for the next five years for new agro-processing industries Full excise duty exemption for goods that are used in installation of cold storage facilities Relaxed FDI norms 100 per cent FDI permitted under automatic route (except for alcohol, beer, and sectors reserved for small scale industries) Repatriation of capital and profits permitted Mega food parks The scheme based on Cluster approach, which creates a well-defined agri/horticultural processing zone with better support of infrastructure and well-established supply chain Aims at providing mechanisms to link agricultural production to the market by bringing farmers, processors and retailers together Source: Ministry of Food Processing Industries, APEDA, Aranca Research Note: FDI Foreign Direct Investment

29 Focus on infrastructure The sector has been assigned priority status for bank credit 60 Agri Export Zones (AEZ) have been set up across the country According to Vision 2015 formulated by MOFPI, the government plans to establish 30 mega food parks in public-private partnership mode across the country; out of these, 10 have already been approved in the first phase The government has announced setting up of 15 mega food parks in its FY12 Budget as part of the third phase of Mega Food Park Scheme Incentives for development of storage facilities Investment-linked tax incentive of 100 per cent deduction of capital expenditure for setting up and operating cold chain facilities (for specified products), and for setting up and operating warehousing facilities (for storage of agricultural produce) Focus on R&D and modernisation The government launched initiatives such as for the Setting Up/Upgradation of Quality Control/Food Testing Laboratory, R&D and Promotional Activity scheme and the Technology Upgradation/Setting Up/Modernisation/Expansion of Food Processing Industries Scheme National mission on food processing MOFPI launched a new Centrally Sponsored Scheme (CSS) National Mission on Food Processing to promote facilities for post-harvest operations, including setting up of food processing industries in India Source: Ministry of Food Processing Industries (MOFPI), APEDA, Aranca Research

30 Agri services Food processing Fermentation Vegetable oil Agri machinery Tea and Coffee Sugar Between April 2000 and April 2014, FDI in food and agriculture sector in India stood at USD10.4 billion Demand growth, supply advantages, and policy support have been instrumental in attracting FDI The government s main focus is on supply-chain related infrastructure, such as cold storage, abattoirs and food parks Cumulative FDI inflows (April 2000 to April 2014) in food and agriculture sector (USD million) 12 th Five Year Plan ( ) outlay shares: Food Processing 6,000 5,400 4,800 4,200 3,600 3,000 2,400 1,800 1, ,700 5,859 1, % 50% 40% 30% 20% 10% 0% 3% 5% 11% 36% 1% National Mission on Food Processing 3% Infrastructure development 44% Strengthening of institutions Food Safety, R&D and Promotional Activities Venture Capital Fund 11th plan projects to be implemented under NMFP Innovation Fund Scheme Plan allocation to the Food Processing sector: USD2.9 billion Cumulative FDI inflow (USD million) Share of total FDI inflow (%) - right axis Source: Department of Industrial Policy & Promotion, Aranca Research Note: FDI Foreign Direct Investment

31 Major PE investments in food and agriculture Date Company Investor Type of business Deal value (USD million) April, 2014 Bikaji Foods International Ltd Lihthouse Funds LLC Manufacturer and wholesale snacks 14.9 December, 2012 Godrej Agrovet Temasek Agribusiness December, 2008 Nuziveedu Seeds Blackstone Group Floriculture 80.0 September - October 2008 Nilgiris Dairy Actis Private Equity Dairy 65.0 June 2013 Milltec Group Multiples Private Equity Technology and machinery developer for agro mills and plants June, 2011 Prakash Snacks Pvt Ltd Sequoia Capital Snacks 30.0 September, 2012 Parag Milk & Milk Products IDFC Alternatives Ltd Dairy 29.0 October, 2007 Amalgamated Beans Coffee Trading Co 43.2 Darby Asia Investors Non-citrous fruit farming 25.0 April, 2011 Bush Foods Overseas Pvt Ltd Standard Chartered Pvt Eq Ltd Rice milling 25.0 June, 2010 Tirumala Milk Products Carlyle Group Milk production 22.0 September, 2010 The CREMICA Group Motilal Oswal Private Equity Advisors General food products 15.0 November, 2010 Nashik Vintners Verlinvest SA Wine and liquor 15.0 June, 2008 Parag Milk & Milk Products Motilal Oswal Private Equity Advisors Dairy products 14.1 Source: Thompson ONE Banker, Assorted News Articles, Aranca Research Note: N.A. Not Available

32 Major M&A activity Date Target company Acquiring company Type of business Deal value (USD million) July, 2014 United Spirits Ltd Relay BV Liquor May, 2014 Nashik Vintners Pvt Ltd Investor Group Wines and brandy March, 2014 Maroosh Unilazer Ventures Pvt Ltd Owns and operates restaurants 2.94 March, 2014 Shanghvi Brands Promoter Pvt Ltd Tano Capital LLC Floor and grain Mill products 9.86 April, 2013 Bush Foods Overseas Pvt Ltd Hassad Food Rice exporter April, 2013 Taraori Rice Mills Pvt Ltd Ebro Foods SA Food and Beverage 14.0 July, 2011 Jay Mahesh Sugar Industries NSL Sugars Ltd Sugar 51.9 September, 2011 Olam International Ltd Hemarus Industries Ltd Sugar 73.8 September, 2011 Associated Distilleries Globus Spirits Liquor 14.0 April, 2010 GMR Industries Ltd EID Parry Sugar November, 2010 Eastern Condiments McCormick & Co Seasonings, sauces 35.0 April, 2010 Krishidhan Seeds Summit Partners Agricultural seeds 30.0 December, 2005 Bajaj Hindusthan Sugar & Industries Bajaj Hindusthan Ltd Sugar, ethanol 14.1 Source: Thompson One Banker, Assorted news articles, Aranca Research Note: M&A Mergers and Acquisitions

33 Players such as McCormick had identified India as a strategic market way back in the 1990s Global players such as Hershey are now keen on entering the increasingly attractive Indian market Established players such as Nestle and Coke are extending their global JVs to India Foreign players Indian partner Type of business Stake ratio Year Kagome and Mitsui Ruchi Soya Industries Tomato products 60: Starbucks Corporation Tata Global Beverages Beverage 50: Molson Coors Cobra India Brewing NA 2011 Dan Cake Phadnis Group Cake and biscuits 66: McCormick Kohinoor Foods Ltd Basmati and food products 85: McCormick Eastern Condiments Seasonings 26: McCormick AVT Spices 50: Hershey Godrej Chocolates 51: Source: Thompson ONE Banker, Aranca Research Note: JV Joint Venture

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35 Untapped market with strong growth potential Potential global outsourcing hub Supply chain infrastructure and contract farming Fragmented market leads to lower processing levels and value addition The government plans to raise value addition to 35 per cent by 2015 from 20 per cent in 2005 PPP modules ideal for the private sector Strong demand growth; household consumption set to double by 2020 Global supermarket majors looking at India as a major outsourcing hub India enjoys favourable supply-side fundamentals (abundant raw materials supply, cost advantages) The government has helped by investing in AEZs, mega food parks, easier credit Both firms and the government are eager to boost efficiency and access to markets Investment potential of USD22 billion in food processing infrastructure; 100 per cent FDI in this area Firms increasingly taking recourse to contract farming in order to secure supply Notes: PPP Public Private Partnership, AEZ Agri Export Zones, FDI Foreign Direct Investment

36 The government s focus and launch of various schemes to provide excellent infrastructure facility in food processing sector open up various opportunity for private investors Various schemes launched by the government provide capital grant, subsidy, duty free export of products and tax incentives to investors The government s focus on infrastructure is likely to lead to a sharp rise in the number of cold storage units Fund allocated for infrastructure development in food processing industry (USD million) Project-wise fund allocated in 12 th Five- Year Plan (USD million) 1,200 1, CAGR: 27.2% 1, Mega Food Parks Scheme th Five Year Plan 11th Five Year Plan 12th Five Year Plan Scheme for Integarted Cold Chain Scheme for Modernsiation of Abattoirs Notes: PPP Public Private Partnership, AEZ Agri Export Zones, FDI Foreign Direct Investment

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38 Operation Flood was the billion litre idea of Dr Varghese Kurien, also known as the Father of the White Revolution. His efforts made India self-sufficient in edible oils as well Operation Flood was initiated in 1970 by the National Dairy Development Board (NDDB) to achieve national self- sufficiency in milk production by creating nationwide milk grids India became the world s largest milk producer in FY2000 with the output of 78 MT. It has retained its position since then and the country s milk production is expected to rise to MT in FY14 Dairy cooperatives offer employment opportunities to about 12 million agricultural families Phase 1 (Jul, 1970 Mar, 1981) Phase II (Oct, 1970 Mar, 1980) Phase III (Jul, 1985 Mar, 1996) Dairy cooperative societies ( 000) Members (million) Milk procurement (million kg/day) Liquid milk marketing (million litres/ day) Milk drying capacity (million tonnes/ day Source: Press Release Ministry of Agriculture, National Dairy Development Board, GCMMF ( Aranca Research

39 Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest food products marketing organisation in India GCMMF (Amul) sales (USD billion) Set up in 1967, it is India s largest exporter of dairy products and has been accorded trading house status During FY14, the Federation recorded the highest growth of 32.1 per cent in turnover over the previous year to reach USD3.0 billion CAGR: 18.8% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Source: GCMMF ( thehindubusinessline.com, Aranca Research Notes: CAGR Compound Annual Growth Rate, FY Indian Financial Year (April March)

40 Main brand: Amul Products: milk (including flavoured), butter, margarine, cheese, curd, desserts, infant food Facts and features Producer members (million) 3.2 Village societies 17,025 Milk handling capacity (million litres/ day) 23.2 Total milk collection (FY14, billion litres) 4.8 Daily milk collection (FY14, million litres) 13.2 Milk drying capacity (million tonnes/ day) 647 Notable awards Excellent performance in dairy product exports for 11 consecutive years CIO International IT Excellence Award (2003) for positive business performance through resourceful IT management and best practices International Dairy Federation Marketing Award (2007) for Amul s pro-biotic ice cream launch Authority APEDA IDG s CIO Magazine (USA) International Dairy Federation Source: GCMMF ( Aranca Research

41 Revenues for FY14 are USD4.7 billion Acquisitions of companies and plats facilities Launched dal analogue and butter margarine Market capitalisation of USD260.2 million Focus on R&D India s No 1 cooking oil and soya food maker Sales growth at a CAGR of 11.8 per cent over FY10-14 Organic growth phase Aggressive acquisitions of lands for soya and palm plantations Strong presence in edible oil and meal market Strong brands such as Nutrela, Vanasapati and Sunrich Top edible oil producer in India with market share of 18.2 per cent Primary focus on crushing and trading activities Expansion of extraction and refining capacity; focus on branded products Focus on developing upstream business; secured access to 185,000 hectares of palm plantation; major expansion of refining capacity Source: News release Ruchi Soya website, Aranca Research

42 Salient characteristics KRBL is world s largest rice miller and basmati rice exporter It has strong brand presence through global retail giants like Carrefour, Bharti - Walmart, Spencer and Future Group It is the largest producer of contract farming basmati rice in the world The company accounts for 25 per cent of India s total exports of branded basmati rice KRBL is well-integrated in terms of farming, rice processing, oil production and power generation Sales (USD million) Exports (USD million) FY09 FY10 FY11 FY12 FY13 FY14 FY12 FY13 Source: Company Annual Report, Aranca Research Note: KRBL - Khushi Ram and Behari Lal

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44 Agricultural and Processed Food Products Export Development Authority (APEDA) NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi Phone: , , Fax: Marine Products Export Development Authority (MPEDA) MPEDA House, Panampilly Avenue PB No 4272, Cochin Phone: / Fax:

45 AEZ: Agri Exports Zones MFP: Mega Food Parks CAGR: Compound Annual Growth Rate FDI: Foreign Direct Investment MT: Million Tonnes IIP: Index of Industrial Production FY: Indian Financial Year (April to March) So FY12 implies April 2011 to March 2012 GOI: Government of India INR: Indian Rupee PPP: It could denote two things (mentioned in the presentation accordingly) Purchasing Power Parity (used in calculating per-capita GDP) Public Private Partnership (a type of joint venture between the public and private sectors)

46 PE: Private Equity APEDA: Agriculture & Processed food products Export Development Authority GCMMF: Gujarat Cooperative Milk Marketing Federation USD: US Dollar Wherever applicable, numbers have been rounded off to the nearest whole number

47 Exchange rates (Fiscal Year) Exchange rates (Calendar Year) Year INR equivalent of one USD Year INR equivalent of one USD Q Average for the year

48 India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of Aranca and IBEF s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.