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Animal Feed Market – India
November 2012
2ANIMAL FEED MARKET IN INDIA 2012.PPT
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Executive Summary
MarketThe global animal feed industry showed a tremendous growth in terms of production during 20__, which was reported to be x mn tonnes In India, the total feed production during 20__ was found to be around y mn tonnes
Drivers & Challenges
Competition
Drivers—Growth in Livestock Population—Increasing Consumption of Animal Based Food Products
—Untapped Market Potential—Growth of User Industries —Growing Population—Increase in Disposable Income
Challenges—Rise in Ingredient Price—High Pricing —Lower Impact on Native Breeds
—Unpredictable Climatic Conditions
Major Players
Company A Company B. Company C
Company D Company E Company F
Trends
Exhibitions and EventsUsage of IT (information Technology)Feed Production from Unusual SourcesBypass ProteinStrategic ActivitiesReplacement of Molasses
3ANIMAL FEED MARKET IN INDIA 2012.PPT
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•Introduction
•Market Overview
Global
India
•Import & Export
•Drivers & Challenges
•Government Initiatives
•Trends
•Competition
•Strategic Recommendations
•Appendix
4ANIMAL FEED MARKET IN INDIA 2012.PPT
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ANIMAL FEED MARKET IN INDIA 2012.PPT
Introduction
In general, feed refers to the food that are fed to the farm animals, but, in technical terms compound animal feed is defined as a highly nutritious food component which is specially prepared for animals and can be fed
to them as the sole source of ration for their proper growth and development in order to enhance their productivity
Price of the raw materials
Factors determining the composition of animal feed
Nutritional value of the components
Nutritional requirements of the specific animal
Rules and regulations of the government
As the components used in preparing animal feed are mainly agro‐based, so, its composition is highly influenced by a country’s agricultural output
Factors
Just like human beings, animals also require a nutritionally adequate feed for their proper and healthy growth
5ANIMAL FEED MARKET IN INDIA 2012.PPT
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Global Market – Overview (1/2)
The changing food consumption pattern worldwide, is surely going to…
X20__
y20__
Production (mn tonnes)Year
• Animal feed is an essential component in the overall food production process, especially the livestock based food productsindustry• Generally, its production takes place in industrial feed mills or in simple on‐farm mixers
• The global animal feed market is witnessing surging demand owing to the growth in consumption of animal based food products
• It has been estimated that the consumption of meat and milk willrise at the rate of A% and B% per annum globally
During 20__, the global animal feed production was found to be around x mntonnes, showing a growth of z% from the
previous year
• In terms of overall feed production, A holds the top position followed by B,C,D, E and F• In 20__, India ranked as the pthnation among the top ten feed producing nations of the world
A6%A5%
A4%
A3%
A2%
A1%
F
E
D
C
B
A
6ANIMAL FEED MARKET IN INDIA 2012.PPT
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Global Market – Overview (2/2)
…boost the global feed industry in the upcoming years
•Worldwide, poultry feed accounts for the biggest share in the overall feed consumption followed by ruminant, pig, aqua and other species
P6%P5%
P4%
P3% P2%
P1%
OthersLatin AmericaMiddle EastNorth AmericaEuropeAsia
Poultry
R6%
R4%R5%
R3%
R2%
R1%
Pig
Q6%Q5%
Q4%
Q3%
Q2%
Q1%
Ruminant
S5%S6%
S2%S3%
S4%
S1%
Aqua
T4%T5%
T6%
T1%
T2%
T3%
Other Feeds*
*Note:Other feeds include horse feed and pet food
B5%B4%
B3%
B2%
B1%
Other FeedsAquaPigRuminantPoultry
Region Wise Breakup of Different Types of Feed Production (20__)
7ANIMAL FEED MARKET IN INDIA 2012.PPT
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Indian Market – Overview (1/2)
Although the industry is at its nascent phase but, it will witness…
•The first commercial production of animal feed in India started in the year 19__ after the establishment of medium‐sized feed plants in northern and western India
•During 20__, the production was around z mn tonnes which is expected to reach v mn tonnes by 20__, growing at a CAGR of p%
•Although, the industry is highly unorganized in nature, it is gradually converting itself into a more organized and well planned sector
Animal Feed – Production Volume
0
10
20
30
mn tonnesP%
20__
g
20__
f
20__
e
20__
d
20__
c
20__
b
20__
a
Production – Segmental Shares (2012e)
X4%X3%
X2%
X1%
Others
Aqua Feed
Cattle Feed
Poultry Feed
*Note: ‘Other’ includes feeds of other animals such as swine, sheep, goat, camel, dog etc
8ANIMAL FEED MARKET IN INDIA 2012.PPT
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Indian Market – Overview (2/2)
…robust growth in the coming years
India has a rich wealth livestock population which accounts for 10.71 per cent
of world's livestock resources which includes 16 per cent share in cattle and 55 per cent share in global buffalo population
Livestock sector accounts for y% of the total farm output in India, which
clearly implies that there will be rise in demand for animal feed in the near
future
In the production of any food product of animal origin, feed accounts for around z% of the total
production cost
India has a rich wealth livestock population which accounts for x per cent of world's livestock resources which includes a per cent share in cattle and b per
cent share in global buffalo population
x1%
X%
WorldIndia
Y1%
Y%
Other Farm OutputsLivestock Sector
Z1%
Z%
Other CostsFeed Cost
9ANIMAL FEED MARKET IN INDIA 2012.PPT
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Animal Feed Market Segmentation
Animal Feed
Poultry Cattle Aqua Other*
The Indian animal feed industry is primarily classified into three major categories and all the remaining types of animal feeds are considered under the group ‘other’
In terms of volume wise consumption, poultry feed accounts for the largest share of around a%,
followed by cattle feed (b%) and aqua feed (c%)
D%C%
B%A% Others
Aqua Feed
Cattle Feed
Poultry Feed
*Note: ‘Other’ includes feeds of other animals such as swine, sheep, goat, camel, dogs etc
10ANIMAL FEED MARKET IN INDIA 2012.PPT
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Import of Major Types of Animal Feed (1/3)
Compounded Animal Feed Major Importing Nations (2011*)
Major Importing Nations (2011*)Concentrated Compound Animal Feed
0
500
1,000
1,500
2,000
2,500
0
5,000
10,000
15,000
‘000 KgINR mn
20__
b4
a4
20__
b3
a3
20__
b2
a2
20__
b1
a1
ValueVolume
13.5%
2.1%4.4%8.2%
21.5%
50.3%
F
E
D
C
B
A
33.0%
10.5%11.2%
13.1%
15.9%
16.3%
U
T
S
R
Q
P
Note: HS Code 23099010 (Compounded animal feed), HS Code 23099020 (Concentrated compound animal feed), (2011*) implies figures between Apr‐Dec 2011
0
500
1,000
1,500
0
2,000
4,000
6,000
8,000
d1
‘000 KgINR mn
20__
d4
c4
20__
d3
c3
20__
d2
c2
20__
c1
Volume Value
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Drivers & Challenges – Summary
Increase in Disposable Income
Drivers
Growth in Livestock Population
Increasing Consumption of Animal Based Food Products
Untapped Market Potential
Growth of User Industries
Growing Population
Unpredictable Climatic Conditions
Challenges
Rise in Ingredient Price
High Pricing
Lower Impact on Native Breeds
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Key Trends ‐ Summary
Replacement of Molasses
Exhibitions and Events
Usage of Information Technology (IT)
Bypass Protein
Strategic ActivitiesFeed Production from
Unusual Sources
Trends
13ANIMAL FEED MARKET IN INDIA 2012.PPT
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Public: Domestic Company – Company A (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate AddressCompany A, Street A
City B
State C
Tel No. 91 124 7239
Fax No. 91 124 4734111
Website www.company.co.in
Year of Incorporation 1767
Ticker Symbol 123456
Stock Exchange ABC
MermaidFish Feed
Category Products/Services
Prawn Feed Profeed, Titan, Manamei, Champ
Scampi Feed Classic, Scampro
DirectorPerson D
Name Designation
Person A MD, CEO
Person B. Director
Person C Director
Head Office
City B
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Key Ratios
Financial Summary
• The company earned a net profit of INR y1 mn in FY 20__, as compared to net loss of INR y2 mn in FY 20__
• The company reported total income of INR x1 mn in FY 20__, registering an increase of z per cent over FY 20__
• The company earned an operating margin of z1 per cent in FY 20__, an increase of a1 percentage points over FY 20__
• The company reported debt to equity ratio of z2 in FY 2011, an increase of a2 per cent over FY 20__
Key Financial Performance Indicators
Net Profit / Loss
Total Income
0
1,000
2,000
3,000
‐100
‐50
0
50
INR mn INR mn
20__
y1
x1
20__
y2
x2
20__
y3
x3
20__
y4
x4
Indicators Value (dd/mm/yyyy)Market Capitalization (INR mn) p
Total Enterprise Value (INR mn) q
EPS (INR) r
PE Ratio (Absolute) s
Particulars y‐o‐y change (2011‐10)
2011 2010 2009 2008
Profitability RatiosOperating MarginNet MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on AssetsReturn on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity RatioDebt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset TurnoverWorking Capital TurnoverCapital Employed Turnover
Improved Decline
Financial Snapshot
Public: Domestic Company – Company A (2/4)
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Key Business Segments Key Geographic Segments
Business Highlights (1/2)
Public: Domestic Company – Company A (3/4)
Description News
Overview
• Company A is primarily engaged in manufacturing business of prawn and fish feeds and supplies its products to the farmers of aqua culture
• The company is also involved in shrimp processing and has its presence in the shrimp ready‐to‐eat and ready‐to‐cook segment under the brand name ‘Prawn King’
• In addition to this, the company has 4 windmills with a capacity of 3.2 MW at Chitradurga, Karnataka for generating and selling electricity
Manufacturing Units
• The company has three prawn and a fish feed manufacturing units at Kovvur, Vemuluru in Andhra Pradesh and Pardi in Gujarat
• The plants have a production capacity of capacity of 90,000 MT per annum
• The shrimp processing and exports unit is situated at Gopalapuram in Andhra Pradesh
0%
50%
100%
20__
A4%
B4%C4%
20__
A3%
B3%C3%
20__
A2%
B2%C2%
20__
A1%
B1%C1%
0%
50%
100%R1%
20__
P4%
Q4%R4%
20__
P3%
Q3%R3%
20__
P2%
Q2%R2%
20__
P1%
Q1%
CBA RQP
16ANIMAL FEED MARKET IN INDIA 2012.PPT
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Business Highlights (2/2)
Public: Domestic Company – Company A (4/4)
• In 2011‐12, the company plans to expand its feed manufacturing facility of its existing Kovvur plant
• For this, the company had already purchased a land of 4.94 acresFuture Plans
• During 2010‐11, the company went for capacity expansion of its shrimp feed manufacturing units Old machineries were replaced with new higher capacity machines and new godowns were set up for enhancing storage capacity
Production capacities of the plant increased to 1,10,000 MT per annum from 52,000 MT per annum
Expansions
• The company exports its processed shrimps to shrimps to the United States, Europe, Japan, Australia, and the Middle EastExport
• In the shrimp feed segment, the company witnessed an increase in sales by 125% and the processing and export division sales grew by 58.4%
• During the 1st quarter of 2012‐13, the overall growth rate of the company was around 20%Company Performance
Description News
Production Facilities• The processing plants are well equipped with plate freezers, blast freezer, IQF (Individual Quick Freezing), state‐of‐art cold storage facility, flake ice manufacturing facility and block ice manufacturing facility
Quality Standards
• The prawn and fish feed manufacturing units are ISO 9001:2008 certified and the shrimp processing and exports unit is ISO 22000: 2005 certified
• The processing plants are in accordance with the HACCP, USFDA, EU & BRC Global standards• In addition to this, the plants are ACC Certified for following best aquaculture practices in their manufacturing processes.
• The company also has in‐house laboratory for conducting special tests for detecting the presence of micro organisms and anti‐biotics in the final products to ensure that it is absolutely contamination free
17ANIMAL FEED MARKET IN INDIA 2012.PPT
Appendix
Ratio Calculations
Operating Margin (Operating Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin (Income Before Tax / Revenues *100
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital (Net Income / Working Capital) *100
Return on Assets (Net Income / Total Assets)*100
Return on Fixed Assets (Net Income / Fixed Assets) *100
Operating Costs (% of Sales) (Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Ratio Calculations
Current RatioCurrent Assets / Current Liabilities
Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity Total Liabilities / Shareholders Equity
Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover Sales / Shareholders Equity
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Sources of Information
Secondary Research
Print MediumLeading Newspapers
Journals / Magazines
Business Magazines
Electronic MediumCompany Websites
Government Websites / Resources
Online Magazines
Online Journals / Articles
Premium Databases
Social Networking Space
Primary Research
InterviewsLeading Industry Vendors
Industry Stakeholders
Industry Experts
Surveys Conducted in Social / Technology Focused Forums
19ANIMAL FEED MARKET IN INDIA 2012.PPT
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Animal Feed Market – India report is part of Netscribes’ Food and Beverage Series. For the complete market research report, contact us at:
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