Radhakrishna Foodland. - Your Preferred Partners in Service Oct 28, 2015

Transcription

1 1 Radhakrishna Foodland - Your Preferred Partners in Service Oct 28, 2015

2 Topics 1. RFPL Evolution 2. India An Attractive Fast Paced Economy Industry Watch - FMCG Challenges 3. Entry Routes Route to India 3. How can RFPL help Deliver? RFPL Offering Collaboration Benefits Leverage on Our Experience Approach

3 RFPL Evolution

4 RFPL Evolution 1966 Established by Mr. Radha Krishna Shete, Ship Chandelling and Marine Catering business 1988 First Modern Trade Retail Outlet Foodland established in Mumbai st Foodservice Distribution facility set up in Thane, Mumbai 1993 Partnership with McDonald s for All India Distribution Vision To be at the heart of the community by adding value everyday in the food and allied business 1995 Tie Up with Eurest - Now Compass Group of UK 1996 Tie Up with Acor S A of France nd Foodservice distribution facility set up at Noida, UP 2003 Setup of Foodpark a state of Art processing and distribution facility 2004 Setup of Wholesale Distribution Facility along with SPAR for Dry Product in Mumbai Mission Sustained customer delight through excellence in everything we do 2005 Expansion of Retail Chain Foodland Fresh.. 53 stores over 3 years 2014 Setup Supply Chain Solutions

5 Our Key Clients

6 RFPL Services India Coverage Logistics Solution Supply Chain Solutions Market Entry/ Expansion FMCG DC Grameen DC QSR DC (Cold Storage) Cold chain Transport Ambient Transport Network Multi User Facility - Ambient Supply Chain Consulting Network Optimization Demand Forecasting & Replenishment Planning Order 2 Cash Process Audit/ Mapping Marketing & Sales Manufacturing & Sourcing Product Quality Management Compliance Distribution Physical movement of products Supply Chain Intelligence One Stop Shop India entry Distribution Center (25) Distributors (2120) Sales Force (247) Cash Vans & Wholesale network to handle smallest outlet

7 India

8 An Attractive Fast Paced Economy ~467 M Indian workforce the 2 nd largest in the world 30% India s share of the addition to the global work force between now to /4th World s population of under 25 year olds live in India $500B Expected size of Indian Food market in 2020 India s GDP growth is the 10th largest in the world and is likely to remain high for the next five years A predicted average growth rate of 7.7% per annum till 2017 Favourable demographics Huge Workforce 17% of the world s population 26.7 years average age HUGE middle class population (1B by 2039) 65% population is in the working age group Significant ENGLISH speaking Population Share of Global Middle Class Consumption Geographical Advantage Improving Infrastructure RICH in mineral resources LOW cost of production 2 nd Largest Rail & Road Network 13 Major Sea Ports & 125 airports 42 Food Parks have GOI approvals Source: Invest India, IBEF, A.T. Kearney's Global Services Location Index, CIA Source: Source: Wolfensohn center for Development

9 Industry Watch Indian FMCG Industry is at $33 billion About 5%:95% is Organised : Unorganised Food & Beverage market around $15 billion CAGR Growth Rates 17.4% Top 50 FMCG Firms in India Dominantly Pharma Diversified Tobacco Beer & Spirits Food & Drinks Personal & Household Care CAGR% age 11% 18% 17% 16% 17% 26% Household Care Personal Care Food & Beverages Health Care Fabric wash, Household cleaners Oral care, hair care, skin care, Cosmetics/Deodor ants, Perfumes, feminine hygiene and paper products Health beverages, Staples/ cereals, bakery products, snacks, chocolates, ice cream, tea/coffee/ soft drinks, processed fruits, and vegetables, dairy products, branded flour OTC products and ethical Source: / /

10 India Challenges Regulation/ Law/ Taxation Infrastructure Bribery Intellectual Property protection Culture Note : 70% of India s population is spread across over half a million villages and individual incomes are low. There are 17 official languages, political complexities and numerous regulatory and cultural barriers. Results are basis on Global Survey High Growth Market Outlook 2015 conducted by KPMG amongst 303 respondents, all in Senior Leadership Roles Source: Global High Growth Markets outlook survey, 2015

11 Entry Routes

12 Route to India Entry Routes Wholly owned subsidiary Joint Venture with Indian partner Trading Model Foreign companies can set up wholly owned subsidiary companies in India in the form of private companies subject to FDI guidelines Foreign companies can set up JVs with Indian partners. There are no separate laws for JVs in India and laws governing domestic companies apply equally to JVs Foreign companies identify an Indian partner who has the local expertise, product understanding and work with them on Profit sharing basis

13 How can RFPL help Deliver?

14 RFPL Services India Coverage Logistics Solution Supply Chain Solutions Market Entry/ Expansion FMCG DC Grameen DC QSR DC (Cold Storage) Cold chain Transport Ambient Transport Network Multi User Facility - Ambient Supply Chain Consulting Network Optimization Demand Forecasting & Replenishment Planning Order 2 Cash Process Audit/ Mapping Marketing & Sales Manufacturing & Sourcing Product Quality Management Compliance Distribution Physical movement of products Supply Chain Intelligence One Stop Shop India entry Distribution Center (25) Distributors (2120) Sales Force (247) Cash Vans & Wholesale network to handle smallest outlet

15 India RFPL Model (Trading Model) Our Clients / Brands Food Products Manufacturing RM Sourcing Demand Creation Local Expertise Demand Management Sauces & Soup Fresh Produce Fresh Vegetables Pork Manufacturing Set-Ups Self / TPM Database RM Source Market Research Market Survey Brand Awareness Advertising (Print, Media, etc.) Digital / Social Media Marketing Multiple Channel Enablement Launch & Support Promotions Processing Conversion Packaging FSSAI Costing Quality Compliance Product Testing Our Sales network helps Reach Out Traditional Trade Modern Trade E-com Players Others QSR Chicken Pizza & Pasta Bakery Stir Fries Database Database Compliance Quality Product IP Protection NDA Food Safety adherence Product approvals under FSSAI NABL Test DQMP Audit Process Process Training Workshop Process Validation Process Enhancement Regular Audit Document MOU/ Contract Dossier SOP Best Practices LLWP Case Studies Benchmarking/ Standard Distribution Imports & Exports Custom s Clearance Transport Storage Inventory Management Customer Service Packaging Return s Management Analytics

16 RFPL s Offering Ride on RFPL s Distribution Network Distribution Center (25) Distributors (2120) Sales Force (247) Cash Vans & Wholesale network to handle smallest outlet Create Brand Awareness Media Social Media Promotion Pricing Strategies Sales & Marketing Experienced Staff & Brand Building Experience across categories Key Account Staffs, Category Management Staff & Merchandisers to handle key accounts Route Service to establish suitable route to market strategy Ease of Market access & Faster market penetration & Ease to Exit/ Transfer

17 Benefits of Collaboration People Reduced headcounts of principle company Ease of exit barriers on people fronts Process Reduced/ Eliminate stock & debtors risk More focus on sharing product technical After Sales reporting on Quality parameters Infrastructure No investments in entering India market Lesser Exit barriers Ready Fleets & DC infra available from day to service route to market Compliance High level of compliances on Labors Food Security Trade Licenses High Level of Quality Standards as per ISO specifications Quarterly/ Half Yearly/ Annual Access to quality audit findings System Readymade platform of CRM, ERP & Latest Applications Visibility of Sales Data at Category level Territory level State level Distributor level Retail Outlet level

18 Leverage on Our Experience Sales Inventory Management Warehousing Transport Management Value Added Services Project Management Client Database Relationship Management Industry Knowledge Market Research Strong Sales Focus Sales Forecasting Demand Knowledge Planning Procurement Stock Management Inventory Funding Demand Planning Demand Forecasting Sales Forecasting Dedicated Ambient/ Temperature Controlled Shared user Bonded Return Management Fulfilment Services Recycling Management Ambient Transport Temp Controlled Rail Air Freight Forwarding Custom s Clearance Packaging Repacking Bundling Promo Packing Reverse Management Recall Management Food Safety Management Robust Methology Warehouse Transition System Transition Transport Fleet Transition Audit & Compliance Management System RFPL has varied experience of handling various facets of Food Businesses spanning wholesale, retail, distributions & logistics, agency representation, imports, co-packing of staples (grains /pulses) and processing and setting up Processes, People and Technology while gaining these experiences

19 In Conclusion RFPL has been in the Food & Allied Business for 4+ Decades We have Strong Market Know-how, Brand Visibility & Customer Focus We Believe, For Companies looking to enter India being Asset light Ease of Transfer/ Exit We are a great BUSINESS FIT

20 Thank You