For the complete report, get in touch with us at : info@netscribes.com India is considered to be the largest milk producer across the globe and accounts for one-fifth of the total global milk production. It constitutes of different sub segments of which ice cream has seen strong growth in the market. The Indian ice cream sector is a competitive market with strong competition from the unorganized sector. At a time when input prices are rising and branded players are forced to increase prices of their products, unorganized or local players indulge in low quality ingredients and offer products at cheaper prices. However, the sector is still on a growth path as constant innovation presents products catering to the varied needs of customers. Due to the developing distribution network leading to wider availability of products coupled with increase in disposable income among consumers; the sector braces for further growth. The report begins with an overview of the dairy industry in India providing the market size and growth as well as information regarding its consumption pattern and market structure. This is followed by a primary segmentation of the industry wherein a product mix is highlighted. An overview of the ice cream market provides an introduction to the sector and covers the market size and growth in India along with a representation of the market share of key players in the sector. The manufacturing process as well as a description of the key processes has been covered. An analysis of the value chain has been included which is followed by a snapshot of the various distribution channels players opt for in the ice cream market. An EXIM trend over a period of four years is included which precedes a Porter’s Five Forces analysis that concludes the section. The next section highlights the segmentation in the ice cream market and all three primary segments namely impulse segment, take home segment and artisanal segment have been discussed. An analysis of the drivers explains the factors for growth of the market and includes lucrative nature of business, rise of buyers in impulse segment, strengthening of distribution network, increase of disposable income and low per capita consumption of ice creams. Ice creams contain air in a substantial amount sometimes even up to 50% which makes the business a very profitable venture wherein profits margins are extremely high at certain times. The lucrative nature of this business has created strong opportunities in the market Ice creams can be ramified into impulse, take home and artisanal segments. Of these, impulse segment entails highest sales volumes as featured products are small in size, relatively cheaper and can be consumed at a go. Availability of impulse products has increased as push carts are present across cities and towns and affordability has contributed to further growth in such buyers.

1. Ice Cream Market – India
Ice Cream Market India
April 2012

2. Executive Summary
 Indian Dairy sector is considered to be growing at a1% annually
Market  Ice cream market, a sub‐segment of the dairy sector, is expected to grow at a2% CAGR over 20‐‐‐
20‐‐
Drivers Challenges
– Lucrative nature of business – Rise in input costs
Drivers & – Rise of buyers in impulse segment – Erratic power supply across the
– Strengthening of distribution network
Strengthening of distribution network country
Challenges
– Increase in disposable income – Rise in local manufacturers
– Low per capita consumption of ice
creams
 Frozen yoghurt  Promotional offers flooding the sector
Trends  Exclusive stores  Mini meal concept
 Entry of eatery players  Alternative products
 Indian Ice Cream Manufacturers’ Association
Indian Ice Cream Manufacturers Association  Introduction of new variants
Introduction of new variants
Major Players
Competition Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
ICE CREAM MARKET IN INDIA 2012.PPT 2

3. •Introduction
•Market Overview
•Segments
•Drivers & Challenges
•Government Participation
•Trends
•Competition
•Strategic Recommendations
pp
•Appendix
ICE CREAM MARKET IN INDIA 2012.PPT 3

4. Ice cream market is eyeing growth as players look towards
expanding distribution channels
Ice Cream Market – Overview Market Size and Growth
• Putting organized and unorganized players together, INR bn
in terms of units the market adds to ‐‐ mn ltr X%
40 D
 State 1 has the largest share in this market standing at C
30 B
p1% share A
20
• The premium segment is estimated to be p2% of the
total market 10
• The market is dominated by certain flavours with f1, 0
20-- 20-- 20-- 20--
f2 and f3 constituting p3% of the market
• Per capita consumption of ice cream in India is ‐‐ ml Market share of players in India (2011)
per annum which is low compared to other nations
per annum which is low compared to other nations
• Factors such as inflationary measures effecting price Company 1
a5% Company 2
hike in chocolates, sugar and other inputs have
emerged as potential threats Company 3
a1% Company 4
• Ice cream players have also formed an association to a4%
Company 6
boost consumption in this sector
a3%
a2%
Source:
ICE CREAM MARKET IN INDIA 2012.PPT 4

5. Distribution Channel – Summary
Push Carts Distributors
Key
Channels
Parlours Retailers
ICE CREAM MARKET IN INDIA 2012.PPT 5

6. Imported products witnessed a rise in demand from
aspirational consumers
Imports Imports (Value and Volume)
• India has a Customs Basic duty of c1% with a Customs Value
INR mn Volume ‘000 kg
cess of c2%
cess of c2% 40
W
150
• In addition to ice creams being imported, ice cream 30 V
100
20 U X
flavours including vanilla also feature in the list
50
10
• A large portion of ice creams are imported from
g p p
0 0
France followed by countries such as country 1, 20----- 20----- 20----- 20-----
country 2 and country 3
Segmentation – Value (20‐‐ ‐ ‐‐) Segmentation – Volume (20‐‐ ‐ ‐‐)
u% Country 1 u% Country 7
t% t1%
Country 2 Country 8
s% Country 3 s1% p1% Country 9
p%
Country 4 Country 10
r% Country 5 r1% Country 11
Country 6 Country 12
q% q %
q1%
Source:
ICE CREAM MARKET IN INDIA 2012.PPT 6

7. Drivers & Challenges – Summary
Drivers Challenges
Lucrative nature of business
L ti t fb i Rise in input costs
Rise of buyers in impulse segment Erratic power supply across the
country
Strengthening of distribution network Rise in local manufacturers
Increase in disposable income
Low per capita consumption of ice
cream
ICE CREAM MARKET IN INDIA 2012.PPT 7

8. Government Participation – Summary
Prevention of Food
Adulteration Act 1954
Adulteration Act 1954
Initiatives
Food and Safety Standards
Government Policies
Act 2006
A 2006
ICE CREAM MARKET IN INDIA 2012.PPT 8

9. Trends ‐ Summary
Frozen yoghurt
Exclusive stores
E l i t
Entry of eatery players
Indian Ice Cream Manufacturers’ Association
Key Trends
`
Promotional offers flooding the sector
Mini meal concept
Alternative products
Introduction of new variants
ICE CREAM MARKET IN INDIA 2012.PPT 9

10. Public: Domestic Company – Company 1 (1/3)
Company Information
SAMPLE
Offices and Centres – India
Place 1, Country 1
Corporate Address
Tel No. +123456
Fax No. +123456
Place
Website http://www.abc.com/
Year of Incorporation
p 19‐‐
Ticker Symbol 123456
Stock Exchange ‐‐
Products and Services
Products and Services
Category Products/Services
C1 S1, s2 Key People
C2 S3, s4 Name
N Designation
D i ti
C3 S4 Person 1 D1
Person 2 D2
C4 S5
Person 3 D3
Person 4 D4
Source:
ICE CREAM MARKET IN INDIA 2012.PPT 10

11. Public: Domestic Company – Company 1 (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Profit (2011‐10)
Total Income
INR mn INR mn Profitability Ratios
Profit / Loss
3,000 60 Operating Margin
S
P R Net Margin
2,000 Q 40 Profit Before Tax Margin
1,000 20 Return on Equity
Return on Capital Employed
0 0 Return on Working Capital
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company incurred a net profit of INR ‐‐ mn in FY 2011, as Operating costs (% of Sales)
compared to net profit of INR ‐‐ mn in FY 2010 Administration costs (% of
• The company reported total Income of INR ‐‐ mn in FY 2011, Sales)
registering an increase of x1% over FY 2010
registering an increase of x1% over FY 2010 Interest costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of x2% in FY 2011 a
Current Ratio
decrease of ‐‐ percentage points over FY 2010
Cash Ratio
• The company reported debt to equity ratio of ‐‐ in FY 2011, an Leverage Ratios
increase of x3% over FY 2010 Debt to Equity Ratio
Debt to Capital Ratio
b i l i
Financial Summary
Interest Coverage Ratio
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR) A Fixed Asset Turnover
Total Enterprise Value (INR) Asset Turnover
B Current Asset Turnover
EPS (INR) C Working Capital Turnover
PE Ratio (Absolute) D Capital Employed Turnover
Source: Improved Decline
ICE CREAM MARKET IN INDIA 2012.PPT 11

12. Public: Domestic Company – Company 1 (3/3)
Key Business Segments Key Geographic Segments
Segment 1 Country 1 Country 3 Country 5 Country 7
Segment 2 Country 2 Country 4 Country 6
Segment 3
E F G H I J K L
100% 100%
75% 83% 81% 83% 85% 3% 86% 88% 90%
50% 50%
2%
24% 1% 5% 5% 14% 12% 10%
16% 1% 18% 1% 16% 1% 0%
0%
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Business Highlights (1/2)
Description News
• Is the gth largest ice cream player in the Indian market
• Has the largest range of ice creams with more than ‐‐ flavours which are sold in in a
Performance
Performance variety of more than
variety of more than ‐‐ packs
• In addition to selling ice creams, it also engages in the ready to eat items catering to
almost ‐‐ countries across the globe
Production Capacity • Has enhanced its production capacity from ‐‐ mn ltr per day to ‐‐ mn ltr per day
Source:
ICE CREAM MARKET IN INDIA 2012.PPT 12

13. Private: Domestic Company – Company 1 (1/3)
Company Information
S
SAMPLE
Offices and Centres – India
Corporate Address Place 1, Country 1
Tel No. +123456
Fax No. +123456 Place 1
Website
b http://www.abc.in/
h // b /
Year of Incorporation 19‐‐
Products and Services
Products and Services
Category Products/Services
C1 S1 Key People
Name
N Designation
D i ti
C2 S2
Person 1 D1
C3 S3
Person 2 D2
Person 3 D3
Person 4 D4
Source:
ICE CREAM MARKET IN INDIA 2012.PPT 13

14. Private: Domestic Company – Company 1 (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Total Income Profit Particulars 2011 2010 2009 2008
Total Income (2011‐10)
INR mn INR mn Profitability Ratios
Profit / Loss
1,200 P 25 Operating Margin
1,000 Net Margin
20
O Profit Before Tax Margin
800 Return on Equity
15
600 Return on Capital Employed
M N
10 Return on Working Capital
400
Return on Assets
200 5
Return on Fixed Assets
0 0 Cost Ratios
20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales)
Administration costs (% of
Financial Summary Sales)
Interest costs (% of Sales)
Interest costs (% of Sales)
• Company incurred a net profit of INR ‐‐ mn in FY 20‐‐, as Liquidity Ratios
compared to net profit of INR ‐‐ mn in FY 20‐‐ Current Ratio
Cash Ratio
• It reported total Income of INR ‐‐ mn in FY 20‐‐, Leverage Ratios
registering an increase of n1% over FY 20‐‐ Debt to Equity Ratio
Debt to Capital Ratio
• Earned an operating margin of n2% in FY 20‐‐ an increase
Interest Coverage Ratio
of ‐‐ percentage points over FY 20‐‐
Efficiency Ratios
• The company reported debt to equity ratio of ‐‐ in FY 20‐‐, Fixed Asset Turnover
a decrease of n3% over FY 20‐‐ Asset Turnover
Current Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Source: Improved Decline
ICE CREAM MARKET IN INDIA 2012.PPT 14

15. Private: Domestic Company – Company 1 (3/3)
Business Highlights
Description News
• Operates as a subsidiary of n4
Operates as a subsidiary of n4
Parent Company • N5 partners international brands such as b1, b2 and b3
• N6 acquired n7% stake in ice cream venture n8 in 20‐‐
• N9 ice creams are manufactured at ‐ facilities including n10 n11 and n12 in n13
N9 ice creams are manufactured at facilities including n10, n11 and n12 in n13
• The plant capacity of n14 is ‐‐ mn ltr and n15 plant has an installed capacity of ‐‐ ltr per
Manufacturing plants day
• N16 plant caters to the markets of n17, n18, n19, n20, n21 and n22
• N23 plant caters to the markets in western and southern parts of the country
• Has collaborated with other ice cream manufacturers to form the umbrella association of
IICMA
Indian ice Cream Manufacturers’ Association
• N24 i
N24 ice creams are not only present in India but also has overseas presence including n25
t l t i I di b t l h i l di 25
Global Presence
and n26
Source:
ICE CREAM MARKET IN INDIA 2012.PPT 15

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ICE CREAM MARKET IN INDIA 2012.PPT 16