Coffee Market India

March 2011

Executive Summary
The organized coffee market in India is estimated to be worth X bn in 20-Karnataka accounts for ~X% of Indias total coffee production Changing consumer lifestyles, increasing urbanization and higher frequency of eating out has fueled growth in the market

Market

Drivers: Drivers & Challenges

Rising demand for ready to drink (RTD) coffee Export promotion schemes for coffee Favorable demographics Growing disposable income

Trends

Global players foraying into the Indian market Investments made by PE players indicates industry potential Emergence of Organic Coffee Growth of Franchising of emerging coffee retail shops Brand expansion into smaller cities Indian coffee retail market is dominated by global players, specially in the organized coffee retail segment Two major domestic players dominating the market are Company 1 & Company 2

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Challenges:
Harmful to human health Large number of licenses to be acquired

Competition

COFFEE MARKET IN INDIA 2011.PPT

Market Overview Foreign trade

Export Import

Drivers & Challenges Trends Competition Key Developments

COFFEE MARKET IN INDIA 2011.PPT

Southern states like State 1 and State 2 dominate coffee production in India
Production Overview
Coffee production in India is growing slowly
Although the production gets hampered due to delayed and inadequate pre-blossom showers across the growing regions in South India

Size & Growth Volume

Arabica 000 mt
400 300 200 100 0

Robusta

Southern parts of India account for the major share in coffee production
The largest producers include State 1 and State 2

Karnataka accounts for ~X% of Indias total coffee production

Production in the state is estimated to rise to XX tonnes in 20--, up from XX tonnes in 20-State 2s production is estimated to be XX tonnes in 20XX,up from XX tonnes in 20--

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+Q% a x y b x y 2007-08 c x y 2008-09 d x y e x

2006-07

2009-10

2010-11e*

State-wise Segmentation
C% D% B% State1 State 2 State 3 Others

However, the production is hampered sometimes due to pest attacks also The organized coffee market in India is estimated to be worth XX bn in 20--

A%

Source: COFFEE MARKET IN INDIA 2011.PPT

Drivers & Challenges Summary

Drivers
Rising demand for ready to drink (RTD) coffee Export Promotion schemes for coffee Favourable demographics Growing disposable income

Challenges
Harmful to human health Large number of licenses to be acquired

COFFEE MARKET IN INDIA 2011.PPT

Trends Summary

Global players foraying into the Indian market

Brand expansion into smaller cities

Key Trends

Investments made by PE players indicates industry potential

Growth of Franchising of emerging coffee retail shops

Emergence of Organic Coffee

COFFEE MARKET IN INDIA 2011.PPT

The market is highly competitive with a large number of Indian and foreign players
Overview
Market is highly competitive with a large number of Indian and foreign players Growing trend of consumption of different varieties of coffee and increasing brand consciousness has led to the increase of global player footprints Indian coffee retail market is dominated by global players, especially in the organized coffee retail segment

Indian Coffee Marketing System

Coffee Marketing System

Organized modern formats like malls and supermarkets have also become a favorite destination for the outlets Master companies are readily tying up with small franchisors and mall owners to promote their brand

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Y%

Route 1

Route 2

Route 3

Market share (20--)

Company 1 Z% Company 2 Others

In order to reach a larger younger audience, players are opening chains of outlets outside colleges, institutions, petrol pumps and highways

X%

Source: COFFEE MARKET IN INDIA 2011.PPT

Major Coffee Players in India (1/8)

Company Snapshot: Company 1
Corporate Information
Headquarters Founded Products Key People City 1 19-Product 1 Person 1

Financial Performance
Revenue INR bn
80 60 40 20 0

Revenue Profit / Loss d c a b

Profit INR bn
10 8 6 4 2 0

2007

2008

2009

2010

Business Highlights
Is a subsidiary of xx Export sales at xx mn, have decreased by x % in value terms, mainly due to the shift in composition of instant coffee exports to xx, from retail to bulk packs Company makes efforts to facilitate out of home consumption and has increased the number of x Offers various varieties of coffee under the brand name Nescafe, such as Product A, Product B

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COFFEE MARKET IN INDIA 2011.PPT

Source:

Thank you for the attention

The Coffee Market India report is part of Research on Indias Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com

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COFFEE MARKET IN INDIA 2011.PPT