agro processed food

8/2/2019 Agro Processed Food

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Cygnus Business Consulting & Research Pvt. Ltd., 2011 1

Vol. 1108 August 2011

CONTENTS

INDUSTRY AT A GLANCE ....................................................................................................2

KEY DEVELOPMENTS ..........................................................................................................3

Marketing................................................................................................................................3

Mergers & Acquisitions...........................................................................................................4

Others.....................................................................................................................................5

INDUSTRY STATISTICS .........................................................................................................7

PRODUCT FOCUS ...................................................................................................................8

Edible Oil ...............................................................................................................................8

Overview............................................................................................................................8

Classification .......................................................................................................................8

Market Share & Imports .....................................................................................................8

Outlook..............................................................................................................................9

COMPANY FOCUS ................................................................................................................10

Tata Global Beverages Ltd....................................................................................................10

Introduction......................................................................................................................10

Cost Structure Analysis .....................................................................................................11

Stock Performance............................................................................................................12

Outlook............................................................................................................................12

STOCK SCAN .........................................................................................................................13

UPCOMING EVENTS ...........................................................................................................14

Industry Monitor

Agro-processed Food

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Industry Monitor Agro processed food August 2011


INDUSTRY AT A GLANCE

Marketing

S+S Inspection to launch two new inspection systems at PACK EXPO; USA

Nilfisk Industrial Vacuums announces new three-phase vacuum cleaners; USA

Endress+Hauser opens temperature instrumentation manufacturing plant in US; USA

Nestle, Tata may be thirsty for Arizona tea; USA

Health concerns drive dark and organic chocolate boom; Italy

Fortress Metal Detection Systems Ensure Poultry Products of the Highest Quality; Nether lands

AgroTech Foods enters ready-to-eat segment, launches rice-based Sundrop Yummeals; India

Bihar becoming major milk producer; India

Technology of making biscuits and bread from black rice transferred; India

Amul ranked No.1 Indian brand; India

Mergers & Acquisitions

France's Groupe Danone to merge distribution in India with probiotic drinks joint venture; India

Eureka Forbes to enter packaged drinking water market; India

Others

Eriez combines US and Canadian sales organizations into North American Sales Team; USA

Australian milk processors eyeing Indian market; India

ITC rules out immediate price hike on food items; India

Sugar-free, fat-free food PepsiCo, Parle forced to withdraw expansion plans; India

French diary firm Danone to go slow on expanding in India; India

Global coffee production estimated at 135 million bags; India




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KEY DEVELOPMENTS

MarketingAmericas

USA: S+S inspection to launch two new inspection systems at PACK EXPOS+S Inspection will be demonstrating its broad contamination detection and removal capability. Newproducts will include the totally redesigned RAYCON X-ray product inspection system using the latestlow energy X-ray source and sophisticated image processing software to identify metallic and non-metallic contamination, flavor clumps and missing components at a rate of up to 600 items per minute.

The new RAYCON is ideal for end of line and in process inspection of a wide range of packed products,especially in the food industry where product inspection must be totally effective. Also new is the GHFtunnel metal detector shown mounted on the S+S SANICON conveyor system, an ideal configurationfor use in a wide variety of metal detection applications.

USA: Nilfisk Industrial Vacuums announces new three-phase vacuum cleanersNilfisk Industrial Vacuums announces the launch of the Nilfisk CFM T Series. These three-phase,

continuous duty vacuum cleaners meet the industrial demands of today's manufacturing facilities, whorealize the importance of implementing a solid housekeeping plan to keep workers safe and productivityhigh. The T Series is comprised of the T26, T48 and T63. Constructed of heavy duty steel andpolypropylene, these reliable machines feature solid construction and strong performance at an affordableprice. Ideal for collection of powders, liquids, dust and debris, the vacuums are easy to use and maintain,even in the most challenging environments.

USA: Endress+Hauser opens temperature instrumentation manufacturing plant in USEndress+Hauser officially opened a new Temperature production facility in Greenwood, Indiana,recently. The 12,000 sq ft manufacturing plant will build temperature sensors, thermo wells, transmitters,recorders, flow computers, safety barriers, displays and other instrumentation to meet the increasingdemand for Endress+Hauser instrumentation in North America and South America. Sales of our

temperature instruments in North America have increased by 40% so far in 2011. The new facilityprepares Endress+Hauser to serve the growing demand, producing temperature instrumentation for theNorth American market, as well as products for export to South America.

USA: Nestle, Tata may be thirsty for Arizona teaIndia's Tata Global Beverages and Nestle Ltd have, or have had in the past, an interest in acquiring USiced tea maker Arizona Beverage Co, according to Beverage Digest. At least two companies have had aninterest in privately held Arizona Sources cited enterprise valuations for Arizona ranging from US$3billion to US$4.25 billion, Beverage Digest. Nestle, which makes Sweet Leaf Tea and Nestea, is said to beone of the interested parties. Soft drink leader Coca-Cola Co, which lags rivals in the US tea market, wasnot mentioned by any sources as having a recent interest.

Europe

Italy: Health concerns drive dark and organic chocolate boomSales of chocolate rose by nearly 19% in Italy in the four years up to 2010, driven by the trend towardspremium, but also higher selling prices, finds a market review from Leatherhead. Increasing healthconcerns have also had an impact upon the Italian confectionery market, notes the UK research group.Italian consumers are displaying an increasing preference for dark chocolate, largely because of its healthbenefits, while sales of organic chocolate are also rising. With sales worth an estimated 3.49bn, thechocolate sector was the markets largest in value terms in 2010. Per capita consumption of chocolate andsugar confectionery has traditionally been low in Italy by Western European standards, under pressurefrom product sectors such as biscuits, comments the review.

Netherlands: Fortress Metal Detection Systems ensure poultry products of the highest qualityThe people have produced poultry for discerning customers throughout the UK and Europe for morethan 60 years. For the past five years its poultry processing plant at Hoogeveen has used high

performance metal detection systems produced by leading UK designer and manufacturer, Fortress




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Technology, strengthening that relationship recently with an order for three additional machines. In orderto maintain these high standards, need to ensure that their metal detection systems are accurate, fast andreliable and they have found that to be the case with the Phantom equipment from Fortress Technology.Each of the models supplied has been custom-made along with a conveyor system for this customer,

with a variety of aperture sizes ranging from 350mm x 150mm to 550mm x 325mm.Asia-PacificIndia: AgroTech Foods enters ready-to-eat segment, launches rice-based Sundrop Yummeals

AgroTech Foods has entered into the ready-to-eat segment by launching rice-based Sundrop Yummeals.The ready-to-eat market is a fairly new concept, however, will soon be one of the fastest growing sectorsin the India food retail sector and holds immense potential. AgroTech Foods already markets SundropRefined Oil, which is the largest brand in the premium segment of the refined oil consumer packs.Sundrop Yummeals will be aimed students who are staying away from their families and workingprofessionals who are looking for quick and affordable healthy food options.The company has joined thelikes of US spices and seasonings maker McCormick and Emami who are looking to expand theirportfolio through ready to eat products.

India: Bihar becoming major milk producerBihar, which until recently was dependent on milk supply from Punjab and Andhra Pradesh to meet itsdomestic consumption, is turning out to be a frontline state in milk production. From a low average milkprocurement of 281.81 thousand litre per day in 1999-2000, the state is now obtaining nearly 14 lakh litreper day milk from farmers in 2011-12. Bihar is among first 10 leading milk producing state of thecountry. Uttar Pradesh, Andhra Pradesh, Rajasthan, Gujarat, Madhya Pradesh, Maharashtra and Haryanaare the other leading milk producing states. Bihar is targeting to increase its milk procurement to about 32lakh liters per day by 2021-22 to further improve its ranking.

India: Technology of making biscuits and bread from black rice transferredCentral Institute of Post Harvest Engineering and Technology has transferred technology of makingbiscuits and bread from black rice, the variety which is widely consumed in China and is also known for

its health benefits. With growing consciousness regarding health foods, entrepreneurs are looking for theopportunities by introducing products in the niche segment. The biscuits and bread developed from theblack rice would be rich in anti-oxidants, fibre and anti-aging properties. That biscuits and breaddeveloped from black rice also be useful for cancer patients due to presence of anti-oxidants. Black rice isunique grain and has lot of health benefits.

India: Amul ranked No.1 Indian brandThe Gujarat Cooperative Milk Marketing Federation owned Amul has been ranked the leading Indianbrand in a study on Asia's top 1,000 brands. The study, by Campaign magazine published from HongKong and Singapore, has ranked Amul as the No 1 Indian brand for the third consecutive year. Amul isalso ranked as the leading dairy brand, ahead of Asian rivals like Dutch Lady, Dumex and Magnolia. Thesurvey was conducted in Australia, China, India, Japan, Korea, Hong Kong, Malaysia, Singapore, Taiwanand Thailand. Other Indian brands which find their way in the survey include Vijay Mallya-owned

Kingfisher, Kishore Biyani's Big Bazaar, ICICI Bank, State Bank of India and leading telecom servicesprovider Airtel.

Mergers & AcquisitionsAsia-PacificIndia: France's Groupe Danone to merge distribution in India with probiotic drinks joint ventureFrance's Groupe Danone is merging its distribution operations in India with its probiotic drinks joint

venture Yalkult Danone India for better synergies, a year after it split with the Wadia Group.The joint distribution structure is expected to result in cost savings through shared cold-chaininfrastructure and manpower efficiency. Both companies are building businesses in categories that are notestablished within the retail reality in India. The French foods giant that sells low-fat curd, flavouredyogurt and smoothies in India. As a three-month shared distribution experiment, Danone's products have

been hitting retail stores together with Yakult, its joint venture probiotic drink, in Pune since last month.




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India: Eureka Forbes to enter packaged drinking water marketWater purification appliances-maker Eureka Forbes is making a foray into the packaged water segmentand will roll out the bottled water product on a pan-India basis by next year. They are foraying into theextremely competitive packaged drinking water market through the `franchise' route. The company will

sell the product under the brand name AquaSure', in 20-litre and one-litre bottles, but has not divulgedthe prices. Eureka Forbes, which started the direct selling concept in India, has a 52% market share in theRs150 billion water purifier segment, with its Aqua guard and AquaSure brands.

OthersAmericasUSA: Eriez combines US and Canadian sales organizations into North American sales team

The integration of the sales and technical support of US and Canadian customers and salesrepresentatives will help streamline and improve Eriez' overall operations. To support this integration it

was promoted from National Sales Manager to the newly-created position of Director North AmericanSales. The company has expanded responsibilities including managing all sales efforts for the Light andHeavy Industry Markets in the US and Canada. The Director of Business Development, will manage all

Eriez sales efforts for the Metalworking Market in both the US and Canada. This is an expansion of theprevious duties that included managing Eriez' sales efforts for the Metalworking Market in the US Eriezis recognized as world authority in advanced technology for separation, vibratory and inspectionapplications.

Asia-PacificAustralia: Australian milk processors eyeing Indian marketAustralian milk processing companies earn handsome profits by marketing their products in India, whichis to be facing shortages of up to three million tonnes a year.India's National Dairy Development Boardhas forecast milk demand at 180-200 million tonnes by the end of 2020. Australian milk processors andtrans-Tasman company Fonterra already has its eyes firmly on the prize. Australian dairy exports to Indiahave soared 70% in the past 10 years, according to National Australia Bank. Indian exports are worth

about US$200m annually to Fonterra, which supplies milk powder and pharmaceutical-grade lactose,among other dairy products.

India: ITC rules out immediate price hike on food itemsMulti-business conglomerate ITC that makes food products under brands such as Sun feast and Bingosays that raw material costs are likely to go up by around 3% in the next 2-3 months, but ruled out anymajor price hike for consumers. While stating that raw material costs are under control at present, thecompany stated value added tax (VAT) on food items is a cause of concern. The company's products arenot likely to become dearer for consumers in the near future. 90% of its products will not be impacted interms of price hikes.

India: Sugar-free, fat-free food PepsiCo, Parle forced to withdraw expansion plansFood marketers may be spending millions to woo the increasingly health-conscious modern day

consumer by launching sugar-free and fat-free food. But in India taste matters more than calories ascompanies such as PepsiCo and Parle Products have learnt the hard way.Pepsi Max, PepsiCo's no-sugar,'next-gen' cola, has sunk without a trace in less than a year of its launch in August 2010. And PepsiCoIndia has shelved expansion plans. The country's largest biscuit maker Parle Products too has withdrawnits baked chip brand Monaco Smart Chips.

India: French diary firm Danone to go slow on expanding in IndiaFrench diary firm Danone stated its priority to strengthen in the pockets where it currently operatesrather than expanding across the country. After exiting from Indian confectionery firm Britannia in 2009,Danone has been trying to make its presence in India over the last one year, primarily in the diary market,

which is dominated by Amul, Mother Diary and Nestle. India is a new and young market for us andbelieve that for India we have to adopt a specific strategy and have to be adapted locally. We are focusedon strengthening our presence in the metros and understand Consumers. The Company is currently

present in Mumbai, Pune, Hyderabad and Bangalore and will concentrate only in the four metros.




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India: Global coffee production estimated at 135 million bagsWorld coffee production in 2011-12 season is estimated at 135 million bags of 60kg each on the back ofrecord output of robusta in Brazil and Vietnam followed by a recovery in Columbia. World coffeeproduction for 2011-12, is forecast at 135 million bags, down just 2.9 million bags as Brazil enters the off-

year of the biennial arabica production cycle.According to the International Coffee Organization (ICO),the global body on coffee, output of the brew in the 2011-12 season is estimated at 130 million bags.Robusta crop in Brazil is expected to jump by 1.8 million bags to a record 14.5 million bags on accountof favourable weather and good crop management, while the arabica crop is estimated to drop by 7.1million to 34.7 million bags.




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Selected State-wise Production of Barley in India

-20

380

780

Rajasthan

UP

Haryana

MP

Punjab

Uttarakhand

HP

Bihar

Jharkhand

J&K

Chhattisgarh

WB

Maharashtra

Sikkim

Delhi

('000Tonne)

2008-09 2009-10

Source: India stat, Cygnus Research

INDUSTRY STATISTICS

Selected State-wise Production of Barley in India('000 Tonne)

States/UTs 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Bihar 24.00 18.30 18.80 19.90 17.70 15.90 12.90

Chhattisgarh 4.30 3.20 3.20 3.00 3.80 3.10 2.40

Haryana 73.00 67.00 76.00 115.00 120.00 185.00 137.00

Himachal Pradesh 31.00 42.00 18.40 24.30 25.40 28.70 16.20

Jammu and Kashmir 8.20 10.00 4.00 7.00 8.40 7.80 7.90

Jharkhand 12.00 11.70 0.00 12.00 10.00 9.00 8.50

Madhya Pradesh 123.20 104.10 99.80 69.80 56.30 101.50 110.00

Maharashtra 1.00 1.70 2.00 1.00 1.00 1.00 1.30

Nagaland 10.00 7.00 7.30 0.00 0.00 0.00 0.00

Punjab 77.00 74.00 63.00 64.00 57.00 55.00 47.00

Rajasthan 408.80 417.70 492.10 591.70 539.00 878.40 619.80Sikkim 1.50 1.50 1.40 1.40 0.70 1.30 1.20

Uttar Pradesh 485.40 411.70 413.40 386.00 327.90 376.00 362.00

Uttarakhand 34.00 33.00 18.00 30.00 26.00 22.00 26.00

West Bengal 4.10 4.00 3.00 2.60 2.70 4.20 2.40

Delhi 0.10 0.20 0.20 0.20 0.20 0.20 0.10

India 1297.6 1207.1 1220.6 1327.9 1196.1 1689.1 1354.7

Source: India stat, Cygnus Research




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Indian Edible Oil Market

Other

oils, 85%

Mustard

oil, 25%

Imports Of Edible Oil

Palm oil,

17%Sun

flower

oil, 10%

Soya

bean oil,

13%

Crude

oil, 70%

Source: KS Oils ltd, Cygnus Research

PRODUCT FOCUS

Edible Oil

OverviewIndia is one of the largest producers of oilseed in the world and this sector holdsan important position in the agriculture sector. Total oil seeds production forFY2009-10 is estimated at 31.7 million tons of nine cultivated oilseeds. Indiacontributes about 6-7% of the worlds oilseed production and it accounts foraround 6.4% of the world oil meal exports.

ClassificationThe different agro climatic zones in India have helped with the cultivation of wide variety of oilseeds.The different seeds being grown here are:

Conventional Oils: Groundnut, mustard, sesame, safflower, linseed, niger seed are the major traditionally cultivated

oilseeds. Soyabeen and sunflower have also gain importance in recent years.

Among the plantation crop Coconut scores highest amongst all.

Non-Conventional Oil: Ricebran oil and cottonseed oil are most important. Oilseeds of tree and forest origin growing mostly in tribal inhabitant areas are also significant source

of oil.

ConsumptionConsumption of oil in India varies according to the region as each of them has got specific preference forcertain oil depending on the availability. While South has got heavy preference for Coconut and Sesame

oil, North Indians are hard fat consumers and therefore Vanaspati is highly preferred there. Vanaspatiwhich plays important role in our Edible oil economy has production of about 1.3MT annually and hasaround 15% share of the edible oil market. Besides this newer oil which was notknown before like cottonseed, sunflower, palm oil, ricebean and soyabean haveentered the kitchen.

Major PlayersIn the edible oil market ITC dominates the market followed by Marico, ITC,Ruchi Soya, Dhara and KS oils ltd.

Market Share & Imports

CompaniesITCMaricoRuchi SoyaDharaK S OilSource: Company site,Cygnus Research




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The Indian oil market is dominated by mustard oil which alone accounts 20% of the whole Ediblemarket, while Other Edible has 80% coverage of the market. As the domestic production is not sufficientto meet the demand of the consumers India has to import oil from other nations. During the periodNov10-Oct11 India imported 9.18m MT. The imported oils mainly constitute crude and refined palm oils

from South-East Asia and Soya Degummed oil from South America. Crude palm oil (70%) and Refinedpalm oil (17%) imports together accounts 23% of the total imports.

Edible oils strengthen on millers buying supportEdible oil prices strengthened up to Rs50 per quintal on the wholesale oils and oilseeds market today onincreased off take by vanaspati millers, amid a firming global trend. Buying activity in edible oils pickedup as palm oil climbed in overseas markets after stockpiles in Malaysia, the second-largest producer,dropped for the first time in six months in July when exports advanced to a record and output declined.Meanwhile, palm oil futures for the October contract increased by 0.9% to US$984 per tonne on theMalaysia Derivatives Exchange. In the national capital, sesame and cottonseed mill delivery (Haryana) oilsrose by Rs55 and Rs25 to Rs6,250 and Rs6,550 per quintal, respectively.

OutlookIndia is a leading player in edible oils, being the worlds largest importer. Edible oils have a highpenetration of 90% in India.A growing population, increasing rate of consumption and increasing Percapita income are accelerating the demand for edible oil in India.India is fortunate in having a wide rangeof oilseed crops grown in its different agro-climatic zones. Groundnut, mustard/rapeseed, sesame,safflower, linseed, Niger seed/castor are the major traditionally cultivated oilseeds.

Edible oil sector mainly backed by the increased demand supported by the Indias growing GDP. Thedemand is expected to increase from current level of 12.8MT to 16.6MT in 2010-11 and 22.5 MT by2015. The companies with conservative hedging and inventory policy, strong raw material sourcingarrangements and geographically dispersed plant should have a stable credit profile in year 2010-11.

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COMPANY FOCUS

Tata Global Beverages Ltd

IntroductionTata Tea Group of Companies setup in 1964 as a joint venturewith UK based James Finlay represents the worlds second

largest global branded tea operation. The group which holds its presence in 40 nations is among the first

multinational companies. The company and its subsidiaries have been focusing on branded product in tea

with a significant presence in plantation activity in India and Sri Lanka.

Tata Tea Group contributes around 86% of its consolidated turnover with remaining 14% coming from

Bulk Tea, Coffee and Investment Income. Headquarter of the company is in Kolkata and owns 27 tea

estates in the states of Assam and West Bengal in eastern India and Kerla in South.

Associate Companies:

Tata Tea Inc.: Tata Tea Incs production facility is located on 4.5 acre plot in Plan City, Florida. Theproduction facility is well equipped with spray dryer, blender, micro-milling machine and bulk jar packinglines. The production capacity of the facility was doubled in 1994 in order to serve more customers. Thecompany has manufactured and supplied to customers more than 40 different instant tea products. Thecompany was awarded, the Plant City Industry of the year award by the Greater Plant City Chamber ofCommerce in year 1994.

Tata Coffee Ltd.: It is the largest Coffee Plantation Company in Asia with estates located in Coorg,Hassan & Chickmagalur district of Karnataka. The current area under Coffee is around 8000 hectaresproducing over 9000 Metric Tonnes of Coffee annually. Both the Robusta and Arabica varieties of coffeeare grown in the estates. The Curing Work unit at Kudige near Kushalnagar in the state of Karnataka

with a production capacity of 22000 MT per annum has been awarded the prestigious certificate of

Approval for Quality Standard ISO9002 and is the first Curing Industry in Asia to get such certification.The production capacity of the company has been augmented to the extent of 2500MT.

Company's Performance at a Glance2010-11 2009-10 2008-09 2007-08

Net Sales 18114.10 17156.10 13792.50 11534.30Operating Profit /Loss 2719.20 5528.10 2883.10 4423.80OPM (%) 15.01 32.22 20.90 38.35NPM (%) 9.97 22.82 11.53 27.12Depreciation 123.60 123.20 106.50 101.70Interest 291.80 450.60 486.00 463.50PAT 1805.90 3914.70 1590.60 3128.60

Source: BSE India, Cygnus Research

KEY RATIOS2010-11 2009-10 2008-09

Debt-Equity Ratio 1.29 1.31 1.76Long Term Debt-Equity Ratio 0.24 0.15 0.18Current Ratio 1.29 1.31 1.76OPM (%) 15.01 32.22 20.90NPM (%) 9.97 22.82 11.53ROCE (%) 9.22 13.29 15.46RONW (%) 8.78 19.04 8.98Source: Company website; Cygnus Research




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Performance Analysis

Net Sales for the year at R18114.10m are higher

than the prior year by 5.58% reflecting theimpact of higher unit price realization on thefood products where higher commodity prices

were passed on to the consumer and a mix ofprice and volumes for the Ethnic foods portfolioas a consequence of margin improvementprogram. Steady improvement in profitabilitycontinued with profit after tax up by 25% versusprevious year and profit before tax up by 17.88%

when compared to the previous year.

During the quarter AMJ11 the Company sales

have been increased by 14.42% which was atRs5194.60m when compared to the last quarterof the same year. Other income has beenincreased by 21.89% when compared to the lastquarter which was at Rs64.60m. Depreciation, Tax, Net profit has been increased when compared to theprevious quarter of the same year AMJ10. In the quarter AMJ11 PBT has been increased by 239% whencompared to the AMJ10.

Cost Structure AnalysisIn the year 2010-11 the raw material costhas been increased by 230 bp whencompared to the previous year. Staff cost

has been increased by 30bp. Thecompany other expenditure has beenincreased by 914 bp. Interest has beenincreased by 101 bps when compared tothe previous year

Performance AnalysisAMJ 11 AMJ 10 Var (%) 2010-11 2009-10 Var (%)

Sales 5194.60 4540.10 14.42 18114.10 17156.10 5.58Other Income 64.60 53.00 21.89 1028.80 1212.30 (15.14)PBIDT 1762.40 607.30 190.20 2719.20 5528.10 (50.81)Interest 14.90 70.30 (78.81) 291.80 450.60 (35.24)PBDT 1747.50 537.00 225.42 2427.40 5077.50 (52.19)Depreciation 30.50 31.40 (2.87) 123.60 123.20 0.32PBT 1717.00 505.60 239.60 2303.80 4954.30 (53.50)TAX 72.10 144.10 (49.97) 497.90 1039.60 (52.11)PAT 1644.90 361.50 355.02 1805.90 3914.70 (53.87)Source: BSE India, Cygnus Research

Cost Structure as Percentage of Operating Income2010-11 2009-10 2008-09 2007-08

Raw materials 60.24 57.93 56.99 47.62Staff cost 5.23 5.54 6.65 6.23

Other Expenditure 27.85 18.70 26.33 18.29Depreciation 0.68 0.72 0.77 0.88Interest 1.61 2.63 3.52 4.02

Tax 2.75 6.06 5.08 6.33Source: BSE India; Cygnus Research

Revenue Performance

10000

15000

20000

2007-08 2008-09 2009-10 2010-11

Rsmn

Source: BSE India; Cygnus Research




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Relative Market Cap

70

110

150

July'10

Aug'10

Sept'10

Oct'10

Nov'10

Dec'10

Jan'11

Feb'11

Mar'11

Apr'11

May'11

Jun'11

BSE Sensex

Tata

Shareholding Pattern

Public

64.76%

Pro-

moters

35.24%


Common Size comparisonTata global beverages ltd when compared to itspeers Mcleod Russel and Tata coffee the rawmaterial consumption for Tata Global

Beverages ltd is comparatively high as apercentage of sales. Staff expenses of thecompany are lower when compared to its peersMcleod and Tata Cofee. Other expenditure ofthe company is 27.85% of sales which isrelatively less when compared with Tata Coffee

which is 34.13% and Mcleod Russel with10.54% tax paid by the company is 2.75% aspercentage of sales which is relatively low

when compared with its peers Mcleod and Tata coffee. Though sales wise Tata Global Beverages isperforming well, coming to the PAT Mcleod is leading in making the profit by 21.02% Rs2322.30m as apercentage of sales and followed by Tata Global Beverages and Tata Coffee.

Stock Performance

The companys stock price which was at Rs116.15 at the end of July 2010 has increased to Rs124.45 byOctober 2010 because of positive sentiments in the market due to industry recovery of the stock marketand good performance of the company. The 52-week high seen in the month of October 2010 was atRs124.45 and a 52-week low was at Rs89.15 in the month of Feb 2011. Major part i.e. 64.76% of thecompanys stake is with Public and the remaining 35.24% is in the hands of Promoters.

OutlookIn future the company is interested on new product and process development to meet the global growthagenda, packaging development, sustainability initiatives, and technical support to ensure productcompliance in different geographies and working with the trade to develop new regulations and improvecapabilities for compliance. The new product and process improvement programme covers tea, coffeeand tea based liquid beverages and includes working with healthy ingredients, ingredient companies,collaborative projects and investigation of opportunities for collaboration with companies globally. A keyarea of development was that of beverages using ingredients beneficial to health which also includesherbs, extracts and other healthy ingredients. The technical support and audit programme provides dataon product and packaging to monitor conformance to quality requirements. R&D will continue todevelop a portfolio of new products and processes targeting products with focus on health and nutrition.

Common Size Comparison for 2010-11 (% of Sales) Tata Mcleod Tata CofeOther Income 5.68 1.30 5.08Raw Materials 60.24 8.02 20.31Staff Expenses 5.23 35.51 22.97Other Expenditure 27.85 10.54 34.13Depreciation 0.68 2.49 3.01Interest 1.61 1.66 1.30

Tax 2.75 4.47 3.37PAT 9.97 21.02 13.71Source: BSE India; Cygnus Research




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Relative Market Cap Performance

85

95

105

16/06/11

17/06/11

20/06/11

21/06/11

22/06/11

23/06/11

24/06/11

27/06/11

28/06/11

29/06/11

30/06/11

01/07/11

04/07/11

05/07/11

06/07/11

07/07/11

08/07/11

11/07/11

12/07/11

13/07/11

14/07/11

15/07/11

BSE Sensex

LAKSHMI

DABUR

Relative Market Cap Performance

85

95

105

16/06/11

17/06/11

20/06/11

21/06/11

22/06/11

23/06/11

24/06/11

27/06/11

28/06/11

29/06/11

30/06/11

01/07/11

04/07/11

05/07/11

06/07/11

07/07/11

08/07/11

11/07/11

12/07/11

13/07/11

14/07/11

15/07/11

BSE Sensex

Kohinoor Foods

AGRO TECH

STOCK SCAN

1st Week (16-23 June 2011) 2nd Week (24th June - 30th June 2011)Index

Opening Closing Var(%) Opening Closing Var(%)BSE (Points) 17,985.88 17,727.49 -1.44 18,240.68 18,845.87 3.32Lakshmi (Rs) 42.00 36.85 -12.26 37.60 39.65 5.45Dabur (Rs) 118.65 113.45 -4.38 113.80 114.05 0.22Kohinoor Foods (Rs) 51.05 45.55 -10.77 46.55 49.95 7.30

AGRO TECH (Rs) 385.25 364.60 -5.36 370.65 383.60 3.49

3rd Week (1st July - 6th July 2011) 4th Week (7-15th July 2011)Index

Opening Closing Var(%) Opening Closing Var(%)BSE (Points) 18,762.80 19,078.30 1.68 18,858.04 18,561.92 -1.57Lakshmi (Rs) 40.50 38.50 -4.94 38.05 37.10 -2.50Dabur (Rs) 116.45 113.40 -2.62 111.75 111.75 0.00Kohinoor Foods (Rs) 50.60 50.70 0.20 51.35 51.20 -0.29

AGRO TECH (Rs) 385.30 381.90 -0.88 379.20 380.05 0.22




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UPCOMING EVENTS

1. Event World Food ExpoDate Aug 3-6, 2011

Venue World Trade Center Metro Manila, Manila, PhilippinesHighlights World Food Expo brings together under one roof the many different types of food,

beverages, and other related products from all around the globe. Together with itsline-up of top-grade seminars and innovative approach to expositions, the eventoffers an excellent opportunity to see and be seen.

ContactDetails

Premier Events Plus Group, Inc.,Tel:+(63)-(2)-9297993; Website: www.worldfoodexpo.com

2. Event Food Tech IndiaDate Sep 09-11, 2011

Venue Netaji Indoor Stadium Kolkata, West Bengal, IndiaHighlights It is the International Exhibition on food products, food processing, grain milling

and Hotel & Food Service.ContactDetails

N. K. Kapur & Company (Private) Limited, C -151 A, Mayapuri Industrial Area,Phase 2nd, New Delhi - 110 064., India;

Tel: +(91)-(11)-28117927; Fax: +(91)-(11)-281179303. Event International Food Processing Summit

Date Sep 14, 2011Venue New Delhi Le Meridien New Delhi, Delhi, IndiaHighlights The Summit cum Exhibition shall be attended by Senior Industry representatives and

experts from all over the world. Together they will offer perspectives on bringingnew innovations to the food processing sector along with exploring possibilities forinvestments to increase trade and strengthen global food security.

Contact

Details

Assocham Corporate Office, 1, Community Centre Zamrudpur Kailash Colony,

New Delhi - 110 048., India.; Tel: +(91)-( 11 )-46550581; Fax: +(91 )-( 11 )-46536481Event Food Ingredients AsiaDate Sep 21-23, 2011

Venue Queen Sirikit National Convention Center (QSNCC), Bangkok, ThailandHighlights It is gateway to the ASEAN region with the exhibition alternating between Indonesia

and Thailand. South East Asia is fast becoming a major market in the future of thefood ingredients industry. This source for high quality ingredients and growingconsumer market is now the destination for the industry's key players.

ContactDetails

Mr. Vincent Brain503/23 K.S.L. Tower, 14th Floor Sri Ayuthaya Road, KwaengThanon Phayathai Khet Rajathewee, Bangkok, ThailandTel:+(66)-(2)-6426911, Fax:+(66)-(2)-6426919/6426920

4. Event Food Ingredients IndiaDate Oct 3-4, 2011

Venue Bombay Exhibition Centre(BEC), Mumbai, IndiaHighlights This is part of the world wide series of Fi Events held in Europe and Asia. Indian

food and beverage market is expanding rapidly and expected to touch US$330 billionby 2013. Fi has been instrumental in sensitizing the fraternity and enabling newer andhigher volumes of businesses around the globe and with a view to penetrate deeper,

ContactDetails

Mr. Jimesh Patel, 615-617 6th Floor, Sagar Tech Plaza A, Andheri Kurla Road SakiNaka Junction, Andheri East, Mumbai, India Tel: +91-22-66122683, Mob: +91-9820756210, Tel: +(91)-(22)-66122648/66122600, Fax: +(91)-(22)-66122626




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5. Event FoodTech ProdMashExpoDate Oct 5-7, 2011

Venue Odessa Sea Commercial Port Exhibition complex, Odessa, UkraineHighlights It is a leading specialized exhibition in the South Ukrainian region with regard to the

exposition of technologies and equipment for agricultural products' processing andfood products' production, to the quantity and composition of visiting stuff, to theefficacy of the business contacts and the richness of actions.

ContactDetails

Mr. Inna Zinskaya,Office 1, 7, Marazlievskaya Street, Odessa, UkraineTel: +380-48-2371737, Tel:+(380)-(48)-7286494, Fax:+(380)-(48)-7286494

6. Event Food ProDate Oct 21 23, 2011

Venue Chennai Trade & Convention Centre Chennai, Tamil Nadu, IndiaHighlights The Food sector continues to rely heavily on technology and new developments.

Such developments are crucial to the food processing industry, and it will be ideal

place to do so, because its cross-over concept covers everything from manufacturingand processing of foods, to packaging, storage and retailing with a process orientationand cross-sector approach.

ContactDetails

Confederation of Indian Industry, Chennai, 98/1, Velacherry Main Road, Guindy,Chennai - 600 032., India.; Tel: +(91)-(44)-42444555; Fax: +(91)-(44)-42444 510


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