Sector Division & Listing of Risk Factors

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models company examples No.

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

b2b farm produce e coommerce-ninjacart


indian seed market dominated by private players indian seed market is expected to reach 9.1 us $ bn
a seed typically takes 5-7 years to hit the market india 5th largest market in seeds across the globe
variety cagr 14%
seeds hybrid
gm

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

opportunities growing population and food demand


increased use of hybrid and commercial seeds
luxury food segments to increase which will require innovations
biotechnology
technology, innovations, patents

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

uct differentiation. Low degree of rivalry


es of scale, high customer switching costs,sometimes farmers take from cooperatives or on credit
commercially
challenges intermittent power supply and overhead cost'
warehouse supervisors and skilled labours will be requires
inefficient handling of persihables-awareness
technology avalilabilty
financing Power and fuel accounts a 45-50% sha
supply constraint-lower manufacturers
The cold chain industry largely compri
Multipurpose cold storage players cate
adoption rate low

Cold chain businesses are heavily depe


Technologies become obsolete with ti
griwth drivers increased organized food retail
porocessed food sector os growing
shift towards fruits and vegetables
increased demsnd from healthcare sector

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

major risk for the cold chain industry in India


ket is further projected to reach INR 2,618 Billion by 2024, growing at a CAGR of 14.8% during 2019-2024. Cold chains impart storage and

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.

and maintenance and affect operations.


ct business operations.
rature. India is currently the world’s largest producer of milk, second largest producer of fruits and vegetables and has a substantial produ

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

ompetition in single commodity potato cold storages.


es and has a substantial production of marine, meat and poultry products. Most of these products are temperature sensitive and require s

he cost of power and fuel to customers due to intense competition.


erature sensitive and require specific temperature ranges to be stored and transported. This has resulted in the establishment of a very lar
the establishment of a very large cold chain infrastructure in the country.
consumer trends there has been seen a change in consumer habits shifting from cereals to fruits, meat eggs etc
increasing disposable incomes and changing lifestyles women workforce
growth in organized retail local sourcing , increased private label
awareness of food quality safe food d
bakery products,kitchen ingredients,snack foods,fruit based beverages,breakfast cereals, frozen foods
health conscious consumer
foo service café culture
fine dining restaurants
various cusisines
regional chains offering hygienic street foods
central or clou kitchen
home delivery
social meia and entertainment

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

challenge for the industry.


compensation, which may adversely affect utilization and in turn revenues. Further, if contracts are  not renewed it may adversely affect

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.

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