KEY INSIGHTS PORTER’S ANALYSIS

LOW HIGH HIGH LOW HIGH

• India Biscuits Market is growing at the CAGR of 12.4% and THREAT THREAT THREAT THREAT THREAT
touched USD 5,151.2 million in 2020
• The market is expected to reach USD 11,792.3 million by 2027
• The biscuit industry is currently divided into two sectors: • Consumer • Availability of • Presence of • Companies can • Competition
organized and unorganized, with well-known brands habits related similar multiple dictate prices is intense
controlling the organized sector's market share to food are alternatives & brands through local • Large
• The organized biscuit market in India, valued at Rs. 37,000 cr in difficult to low switching • Narrow sourcing from influence of
size, grew at double the rate of growth in April-May against pre- change cost increases product a fragmented unorganized
COVID levels • High cost to tendency to shift differentiation group of key sector
• The market grew at 12%-15% in April-May from 7% - 8% set up • Strong across brands commodity
seen before the lockdown in terms of growth rate processing influence of and products suppliers
• Active lifestyle and health awareness of consumers, and the plant marketing
rising demand for Ready-to-Eat snacks are the drivers of the strategies
high growth

PRIMARY ANALYSIS
Packaged Food VS Selected FMCG Industries Sales of Packaged Food in India 5,870,226 Category Wise Sale of Foods(₹ Crs)
Retail Value RSP –INR million – Current-2006-2025

Source: Euro Monitor

 Shareholding Pattern KEY INFERENCES MERITS
SHAREHOLDERS STAKE 1. High promoter holding indicates the • Recurring revenue - Consumer products like food are
consumed and re-purchased often in a matter of weeks.
Promoters 51.10% confidence of promoters in stability and
This provides stability and also help investors to identify
growth of the company. early winners by observing their recurring revenue.
General Public 19.50%
• Low working capital cycle – Consumer food segment is
Foreign Institution 3.40% 2. Decent percentage held by Mutual funds; known for its low working capital cycle which reduces the
Banks Mutual Funds 5.30% foreign institutes etc. also act as a positive liquidity risk of the sector. Industry average working
sign for the investors. capital cycle falls between 30-35.
Financial Institution 0.90% • Low correlation with market – For most of the products,
Others 19.80% demand doesn’t slow even during economical slow times
as the products are mostly staple products.
• High CAGR of biscuit segment – Revenue of biscuit
CAPITAL STRUCTURE VALUE CHAIN segment in India has grown with a CAGR of around 10%
DEVELOPME in last 5 years.
The following chart shows the capital structure of • Well established export markets (Biscuit segment) – In
NT
Bector food's capital structure in comparison with 2019, biscuit exports from India were around USD 237
industry: million to more than 163 countries.
CONSUMER MANUFACTUR
90.00%
ING
80.00% 77.50% DEMERITS
70.00% 62.80%
60.00% • Low per capita consumption in India – Per capita biscuit
50.00%
37.20%
consumption in India is 2.5 kg/year as compared to 13.6
40.00%
kg/year of global leaders UK. For bread, Indian per capita
30.00% 22.50% consumption is 1.4 kg/year as compared 96 kg/year of
20.00%
global leaders UK.
10.00%
0.00%
Debt Equity • High valuations – Biggest demerit of investment in this
sector is higher valuations. Average PE ratio of the sector is
Bector Food Industry Avg.
DISTRIBUTION LOGISTI on higher side.
CS