The annual vending machine production in India will grow strongly over the next few years, with the number of such machines produced annually expected to reach 12,500 by 2013. Sale of goods and services through vending machines are pegged to be worth INR 48 bn by 2012. Both sales of vending machines, and goods and services sold through these machines are expected to develop strongly in the next five years. The report begins with an introduction to vending machines and its operational model. Vending machines follows a simple mechanism including product selection, payment modes, article dispensing and vending feedback. This section is followed by the market overview section which begins with an insight into the overall vending machine market in India, growth in annual production and the potential market for vending machines. Only a small fraction of the potential vending machine market in India has been tapped, indicating a huge scope for growth of this market. Vending machine market in India is expected to grow strongly in the near future. The business model for vending machines has also been covered. It further delves into the various types of vending applications and includes details of hot beverages vending machines, box vending machines, snacks and beverages vending machines, coin/ currency vending machines and ticket vending machines. Additionally, sub-segments of vending machines have been included as well as their installed location and future outlook Exports and imports of this sector have been highlighted, which throws light on the various types of vending products that are traded internationally. This section includes an overview of export-import of such machines, the growth in their total value, the countrywise segmentation and the share of exports-imports across various vending products. An analysis of the drivers and challenges explains the factors leading to the growth of the market including increasing consumerism, growth in organised retail, growing urbanization and corporate culture, improved technology and new applications and changing lifestyle. Strong opportunity exists in the market as increasing disposable income and higher consumption pattern drive the demand for such machines. This coupled with the fact that organized retail space and urbanization in India is growing will lead to a developing market. Additionally, corporate culture and changing lifestyle of people in India will help to stimulate growth in this market. The key challenges identified are payment mechanism and maintenance, availability of cheap labour and consumer perception. Poor payment gateways and lack of adequate maintenance of vending machines deter the growth of this market. Varying perceptions of consumers regarding the use of vending machines also acts as a major bottleneck. The competition section provides an overview of the competitive landscape in the industry and includes a detailed profile of the major players in the market.

1. Vending Machine Market –
Vending Machine Market India
November 2011

2. Executive Summary
 Vending machine market in India is still at a nascent stage and is expected to witness dynamic growth
 Sale of goods and services through vending machines are pegged to be worth INR a bn by 20‐‐
 Number of vending machines produced annually is expected to reach b by 20‐‐
Market  Only ~c% of the potential vending machine market in India has been tapped indicating a huge scope for
Only c% of the potential vending machine market in India has been tapped, indicating a huge scope for
growth in future
 Various kinds of vending machine include hot beverages vending machines, box vending machines, snacks
and beverages vending machines, coin/currency vending machines and ticket vending machines
EExports of vending machines was valued at INR d mn in 200‐ with country being the largest importer and
f di hi l d INR d i 200 i h b i h l i d
automatic beverage vending machines accounting for majority of the vending exports
Export Import  Imports of vending machines was valued at INR e mn in 200‐ with country being the leading supplier and
automatic vending machines and its various parts accounting for f% of the total vending imports
Drivers Challenges
– Increasing consumerism – Payment mechanism and maintenance
Drivers & – Growth in organised retail – Availability of cheap labour
Challenges – Growing urbanization and corporate culture – Consumer perception
– Improved technology and new applications
– Changing lifestyle
Major Players
Co pet t o
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
VENDING MACHINE MARKET IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
•Export‐Import
g
•Drivers & Challenges
•Competition
•Strategic Recommendations
•Strategic Recommendations
VENDING MACHINE MARKET IN INDIA 2011.PPT 3

4. Vending machines dispense products on insertion of
requisite currency or credit SAMPLE
Vending Machine – Introduction
Vending machines are stand‐alone automatic dispensers of various types of products, which operate on insertion of currency or
credit by customers into the machine
Product Selection
A user first selects
A fi l
the requisite product
from the selection
panel in the machine
Vending Feedback Payment Modes
Lastly, it returns After selecting, the
Vending Mechanism user pays the
currency change if
any and produces a requisite amount
transaction slip for via coins, cash or
card users card
Article Dispensing
After payment is
done, the vending
machine dispenses
the product to the
consumer
Source:
VENDING MACHINE MARKET IN INDIA 2011.PPT 4

5. Vending machine market in India is expected to grow
strongly in the near future
Vending Machine Market – Overview Vending Machine – Production
• Vending machine market in India is still at a nascent Yearly
stage and is expected to witness dynamic growth
• Changing lifestyle, technology, and increasing A%
consumerism is expected to increase the demand for
vending machines in India
• Sale of goods and services through vending machines
Sale of goods and services through vending machines
are pegged to be worth INR x bn by 20‐‐ 0
2010 2013e
• In 20‐‐, the vending machine market in India was
estimated to reach INR y bn in z years Vending Machine – Potential Market
•P
Presently, M account for the largest share of sales
tl M t f th l t h f l
Segment 1 Segment 2
through vending machines in India
 Sales of C are also picking up fast and have a huge growth
potential
• Vending of services is a fairly new concept and is
di f i i f il di
likely to increase its share in business with time B% C%
• Both sales of vending machines, and goods and
services sold through these machines are expected to
develop strongly in the next p years
Source:
VENDING MACHINE MARKET IN INDIA 2011.PPT 5

6. Exports of vending machines have grown consistently over
the last few years
Vending Machine Exports – Overview Total Exports under HS Codes
• Export value of vending machines in 200‐ increased
by a% over 200‐ INR mn
• Country 1 and Country 2 together accounted for b% A%
of the total vending exports
 Country was the largest importer of vending machines in
200‐ accounting for more than half the total exports
• Exports of vending machines are expected to better
0
further with rising global demand 2005 2006 2007 2008 2009
Country‐wise Exports (200‐) Share of Exports (200‐)
Segment 1 Segment 3
Country 1 Segment 2
Country 2
Country 3
Country 4
Country 5
Others
Source:
VENDING MACHINE MARKET IN INDIA 2011.PPT 6

7. Drivers & Challenges – Summary
Drivers Challenges
Increasing consumerism Payment mechanism and maintenance
Growth in organised retail Availability of cheap labour
Growing urbanization and corporate
G i b i i d
culture Consumer perception
Improved technology and new
applications
Changing lifestyle
VENDING MACHINE MARKET IN INDIA 2011.PPT 7

8. Players in the Market (x/y)
Company Snapshot: Player
Corporate Information Financial Performance
Total Revenue
Headquarters City, State, Country
City State Country
Net Profit
INR mn INR mn
Founded ‐‐‐‐
Products Product 1, Product 2, Product 3
Key People ABC
0 0
2007 2008 2009 2010
Business Highlights
• Player is primarily engaged in the manufacture of office equipments such as printers, digital duplicators, document
binders, paper shredders and other banking products like note counting machines, fake note detectors, bill payment
terminals, automation cheque deposit systems and note exchange machines
• It has started manufacturing and installing coin vending machines for various banks across India and aims to have b
It has started manufacturing and installing coin vending machines for various banks across India and aims to have b
installations in the coming few years
• Company has recently signed an agreement to acquire the office equipment sales division from Player
Source:
VENDING MACHINE MARKET IN INDIA 2011.PPT 8

9. Thank you for the attention
The Vending Machine Market ‐ India report is part of Research on India’s Manufacturing
Series.
For more detailed information or customized research requirements please contact:
Gaurav Kumar Gagan Uppal
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