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Sector Division & Listing of Risk Factors
Sector Division & Listing of Risk Factors
Sector Division & Listing of Risk Factors
of companies
56
65
vegan,mock meat, stevia etc 23
379
softwares, online ordering solutions 325
455
yomeals,starchick 47
gotoliquorstore 6
kitchens centre,smart kitchens 2
177
food dosti,no food waste 4
fishtokri,chop chop 104
honey,dry fruits etc 104
morning delight,bbdaily etc 36
1727
46
sector category
Farm machinery
seeds
fertilisers Input(upstream)
Irrigation
agrochemicals
Logistics/warehousing
Cold chain Midstream
Food processing
b2b ecommerce Farm2fork
Novel foods
food delivery
restaurant it solutions
internet first restaurants
recipe boxes
alchoholic beverage e comm Food tech downstream
shared kitchen
organic food retail
surplus food marketplaces
meat delivery
Internet snack brands
micro delivery grocery service online groceries & others
Dairy
poultry
allied activities
fisheries
organic sector
insurance
finance others
precision / blockchain/ai
total
food tech 1802
online grocery 2081
risks regulatory uncertainty over gm crops-sale of all gm crops apart from cotton is prohibited
capital required in R&D for innovation
private companies spend 10-12% of their turnover on r&d- bcg analysis
there might be low adoption of hybrid varities among the farmers due to suitability issues
porter 5 forces buyer power buying power of farmers and distributors is typically low but might vary on regional
supplier power labour market.technological researchers and scientists. High supplier power
degree of rivalry low internal rivalry because of patents
new entrants threat of entry in this biotechnology-driven industry is low due to the many capital
substitutes low.beacuse high patented tech ip. Until patents expires and generic substitutes co
s expected to reach 9.1 us $ bn by 2024
ket in seeds across the globe
ability issues companies would have to widen their portfolio and effective distribution strategy
ow but might vary on regional basis. Atleast one harvest season will be required to see the differnetiated properties of seeds. Farmers mig
ts. High supplier power
s low due to the many capital intensive requiremnets for gaining competitive advantage
ires and generic substitutes continue to flood the market
operties of seeds. Farmers might have some switching cost
risks largely a subsidy driven business-companies rely on subsidies for profits
use of fertilizer is highly skewed towards urea urea dominates fertilizer consumption industry
receivables challenges in subsidy driven model
high degree of government control in the industry-
highly dependent on imports also
raw material imported in this industry-international prices may fluctuate the market
porter 5 forces buyer power low- no substitutes
supplier power low-subsidies given by government
degree of rivalry high fixed costs to set up plants. Less product differentiation. Low degree o
new entrants low current players enjoy economies of scale, high customer switch
substitutes low. Natural fertilizers but not so suitable commercially
lizer consumption industry
te the market
Key risks in cold chain Rising cost and continuous unavailability of power and fuel is a major risk for the cold chain i
Rising competition
failure to upgrade machinery timely
failure to comply with requisite standards
timely rnewal of leases
The Indian cold chain market was worth INR 1,121 Billion in 2018. The market is further projected to rea
d fuel accounts a 45-50% share of operating expenses for a temperature controlled warehouse. As power supply is not regular in many pa
chain industry largely comprises single commodity potato and multipurpose cold storages. Single commodity potato storages occupy a larg
ose cold storage players cater to large organized retail clients in the food processing and Quick Service Restaurants, where demand is rela
n businesses are heavily dependent on plant and machinery including air conditioners, data loggers, reefer vehicles, forklifts etc. Any signifi
gies become obsolete with time and upgrading to the latest technology requires investments of time and money. Also, the failure of a com
pply is not regular in many parts of India. Therefore to meet power requirements diesel generators (DG) are used as backup for power sup
potato storages occupy a large volume share in the cold storage industry, with a significant presence in the states of Uttar Pradesh and W
aurants, where demand is relatively steady. Going forward, multipurpose cold storages also face pressure on margins due to intense comp
ehicles, forklifts etc. Any significant malfunction or breakdown in machinery can lead to an increase in repair and maintenance and affect o
oney. Also, the failure of a company to successfully implement new technologies in a timely manner can affect business operations.
old chains impart storage and distribution services for products that have to be maintained at a given temperature. India is currently the w
used as backup for power supply to cold chain which increases the fuel cost for cold storage. Also, the rising power cost puts pressure on
states of Uttar Pradesh and West Bengal which are the largest producers of potato. Hence there is intense competition in single commodi
n margins due to intense competition.
g power cost puts pressure on cold storage companies as they are not able to pass on the entire increase in the cost of power and fuel to c
risks
ruits, meat eggs etc companies
increased working hours frequent travel Y COOK
Kottaram agro foods
zea maize
eakfast cereals, frozen foods shakti sudha agro ventures
lawrencedale agro processing india
jackfruit
amalgam foods
processes food and vegetables
millets
poprcorn
makahna
risk
arehousing industry is highly fragmented and unorganized in nature. Intense competition from unorganized play
Majority of customer contracts typically have a tenure ranging from one to three years. Further, some of contracts may be
Warehousing industry in India is largely fragmented with unorganized players occupying ~83% volume share in the industri
Procurement of land in a strategic location with clear title and proper approvals is still a key challenge for new entrants. Fo
issue. Demand is expected to shift from Old Bhiwandi on account of reclassification and land issues. Lack of existing clear la
However, if the land is meant for commercial use, it can be easily used for warehousing.
Lack of availability of trained manpower due to low incentives and benefits also possess a major challenge for the industry.
tion from unorganized players is a major risk factor for the industry
, some of contracts may be terminated by clients with or without reasons by giving short notice and without compensation, which may ad
olume share in the industrial warehousing industry. Increased competition from unorganized players leads to intense pressure on rentals.
lenge for new entrants. For instance in Bhiwandi, acquiring clear land titles is a major
ues. Lack of existing clear land classifications in Indian cities and reclassification of land are major concerns as far as the development of wa
o intense pressure on rentals. Unorganized players largely have Reinforced Concrete Cement structures, with rentals in the range of Rs 10
s far as the development of warehouse zones are concerned. With land values rising in the last three to five years, availability of affordable
newed it may adversely affect the operations of company.
h rentals in the range of Rs 10-14 per sq ft. On the other hand, organized players have modernized Pre Engineered Buildings warehouses, w
years, availability of affordable land is another concern for the industry. Also different states have different rules regarding agricultural lan
eered Buildings warehouses, which command higher rentals largely in the range of Rs 16-22 per sq ft. However, Organized players also pro
ules regarding agricultural land acquisition, which creates entry barriers and leads to serious cost and time implications. For instance in G
ver, Organized players also provide value-added services such as packaging, kitting, labeling, in-plant line and store feed, inventory and ord
mplications. For instance in Ghaziabad, due to stringent land laws, conversion of land use from agriculture to industrial takes much longe
d store feed, inventory and order management, dedicated help desk, IT-enabled warehouse and transport management systems, which en
to industrial takes much longer compared with the NH-8 cluster in Haryana.
anagement systems, which enable them to charge more rentals compared to unorganized players.