hot drinks industry ananlysis

India - Hot Drinks 0102 - 0803 - 2013

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MarketLine Industry Profile

Hot Drinks in India October 2014

Reference Code: 0102-0803

Publication Date: October 2014

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India - Hot Drinks 0102 - 0803 - 2013


EXECUTIVE SUMMARY

Market value The Indian hot drinks market grew by 10.4% in 2013 to reach a value of $2,760.4 million.

Market value forecast In 2018, the Indian hot drinks market is forecast to have a value of $4,394.1 million, an increase of 59.2% since 2013.

Market volume The Indian hot drinks market grew by 8.1% in 2013 to reach a volume of 682.8 million kg mln.

Market volume forecast In 2018, the Indian hot drinks market is forecast to have a volume of 1,009.4 million kg mln, an increase of 47.8% since

2013.

Category segmentation Tea is the largest segment of the hot drinks market in India, accounting for 47.1% of the market's total value.

Geography segmentation India accounts for 9.1% of the Asia-Pacific hot drinks market value.

Market share Tata Global Beverages Limited is the leading player in the Indian hot drinks market, generating a 15.4% share of the

market's volume.

Market rivalry The degree of competition in this market is strengthened by low switching costs and limited possibilities of product

differentiation, giving the advantage to the well established players who can offer lower prices.

India - Hot Drinks 0102 - 0803 - 2013


TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Market volume ............................................................................................................................................................ 2

Market volume forecast .............................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market share .............................................................................................................................................................. 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market volume ............................................................................................................................................................ 9

Market Segmentation ................................................................................................................................................... 10

Category segmentation ............................................................................................................................................ 10

Geography segmentation ......................................................................................................................................... 11

Market share ............................................................................................................................................................ 12

Market distribution .................................................................................................................................................... 13

Market Outlook ............................................................................................................................................................. 14

Market value forecast ............................................................................................................................................... 14

Market volume forecast ............................................................................................................................................ 15

Five Forces Analysis .................................................................................................................................................... 16

Summary .................................................................................................................................................................. 16

Buyer power ............................................................................................................................................................. 17

Supplier power ......................................................................................................................................................... 18

New entrants ............................................................................................................................................................ 19

Threat of substitutes ................................................................................................................................................. 21

Degree of rivalry ....................................................................................................................................................... 22

Leading Companies ..................................................................................................................................................... 23

India - Hot Drinks 0102 - 0803 - 2013


GlaxoSmithKline Plc ................................................................................................................................................. 23

Tata Global Beverages Limited ................................................................................................................................ 27

Unilever .................................................................................................................................................................... 28

Gujarat Tea Processors And Packers Limited (Wagh Bakri) .................................................................................... 31

Macroeconomic Indicators ........................................................................................................................................... 32

Country Data ............................................................................................................................................................ 32

Appendix ...................................................................................................................................................................... 34

Methodology ............................................................................................................................................................. 34

Industry associations ................................................................................................................................................ 35

Related MarketLine research ................................................................................................................................... 35

India - Hot Drinks 0102 - 0803 - 2013


LIST OF TABLES

Table 1: India hot drinks market value: $ million, 200913 ............................................................................................ 8

Table 2: India hot drinks market volume: million kg mln, 200913 ................................................................................. 9

Table 3: India hot drinks market category segmentation: $ million, 2013 ..................................................................... 10

Table 4: India hot drinks market geography segmentation: $ million, 2013 .................................................................. 11

Table 5: India hot drinks market share: % share, by volume, 2013 .............................................................................. 12

Table 6: India hot drinks market distribution: % share, by value, 2013 ........................................................................ 13

Table 7: India hot drinks market value forecast: $ million, 201318 ............................................................................. 14

Table 8: India hot drinks market volume forecast: million kg mln, 201318 ................................................................. 15

Table 9: GlaxoSmithKline Plc: key facts ....................................................................................................................... 23

Table 10: GlaxoSmithKline Plc: key financials ($) ........................................................................................................ 25

Table 11: GlaxoSmithKline Plc: key financials () ........................................................................................................ 25

Table 12: GlaxoSmithKline Plc: key financial ratios ..................................................................................................... 25

Table 13: Tata Global Beverages Limited: key facts .................................................................................................... 27

Table 14: Unilever: key facts ........................................................................................................................................ 28

Table 15: Unilever: key financials ($) ........................................................................................................................... 29

Table 16: Unilever: key financials () ........................................................................................................................... 29

Table 17: Unilever: key financial ratios ......................................................................................................................... 29

Table 18: Gujarat Tea Processors And Packers Limited (Wagh Bakri): key facts ........................................................ 31

Table 19: India size of population (million), 200913 ................................................................................................... 32

Table 20: India gdp (constant 2005 prices, $ billion), 200913 .................................................................................... 32

Table 21: India gdp (current prices, $ billion), 200913 ............................................................................................... 32

Table 22: India inflation, 200913 ................................................................................................................................ 33

Table 23: India consumer price index (absolute), 200913 .......................................................................................... 33

Table 24: India exchange rate, 200913 ...................................................................................................................... 33

India - Hot Drinks 0102 - 0803 - 2013


LIST OF FIGURES

Figure 1: India hot drinks market value: $ million, 200913 ........................................................................................... 8

Figure 2: India hot drinks market volume: million kg mln, 200913 ................................................................................ 9

Figure 3: India hot drinks market category segmentation: % share, by value, 2013 .................................................... 10

Figure 4: India hot drinks market geography segmentation: % share, by value, 2013 ................................................. 11

Figure 5: India hot drinks market share: % share, by volume, 2013............................................................................. 12

Figure 6: India hot drinks market distribution: % share, by value, 2013 ....................................................................... 13

Figure 7: India hot drinks market value forecast: $ million, 201318............................................................................ 14

Figure 8: India hot drinks market volume forecast: million kg mln, 201318 ................................................................ 15

Figure 9: Forces driving competition in the hot drinks market in India, 2013 ................................................................ 16

Figure 10: Drivers of buyer power in the hot drinks market in India, 2013 ................................................................... 17

Figure 11: Drivers of supplier power in the hot drinks market in India, 2013 ................................................................ 18

Figure 12: Factors influencing the likelihood of new entrants in the hot drinks market in India, 2013 .......................... 19

Figure 13: Factors influencing the threat of substitutes in the hot drinks market in India, 2013 ................................... 21

Figure 14: Drivers of degree of rivalry in the hot drinks market in India, 2013 ............................................................. 22

Figure 15: GlaxoSmithKline Plc: revenues & profitability ............................................................................................. 26

Figure 16: GlaxoSmithKline Plc: assets & liabilities ..................................................................................................... 26

Figure 17: Unilever: revenues & profitability ................................................................................................................. 30

Figure 18: Unilever: assets & liabilities ......................................................................................................................... 30

India - Hot Drinks 0102 - 0803 - 2013


MARKET OVERVIEW

Market definition The hot drinks market consists of the retail sales of coffee, tea and other hot drinks (including chocolate-based hot

drinks, malt-based hot drinks and other).

The market is valued according to retail selling price (RSP) and includes any applicable taxes.

Any currency conversions used in the creation of this report have been calculated using 2013 annual average exchange

rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia,

New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Market analysis The Indian hot drinks market has been enjoying strong, steady growth, with annual rates above 10%. Deceleration is

expected in the forecast period; however, growth will remain strong and well above the global average.

The global coffee growing region sits within a 'bean belt' between the Tropics of Cancer and Capricorn. The two main

commercial types of coffee bean, Arabica and Robusta, account for approximately 70% and 30% of harvests,

respectively.

The Indian hot drinks market had total revenues of $2,760.4m in 2013, representing a compound annual growth rate

(CAGR) of 11.1% between 2009 and 2013. In comparison, the Chinese and Japanese markets grew with CAGRs of

5.8% and 1.2% respectively, over the same period, to reach respective values of $14,904.1m and $3,616.3m in 2013.

Market consumption volume increased with a CAGR of 8.2% between 2009 and 2013, to reach a total of 682.8 million kg

in 2013. The market's volume is expected to rise to 1,009.4 million kg by the end of 2018, representing a CAGR of 8.1%

for the 2013-2018 period.

India is one of the world's largest coffee producers, with a greater focus on Robusta coffee beans.

The tea segment was the market's most lucrative in 2013, with total revenues of $1,300.5m, equivalent to 47.1% of the

market's overall value. The coffee segment contributed revenues of $795.1m in 2013, equating to 28.8% of the market's

aggregate value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 9.7% for the five-year period 2013-

2018, which is expected to drive the market to a value of $4,394.1m by the end of 2018. Comparatively, the Chinese and

Japanese markets will grow with CAGRs of 6.2% and 1.2% respectively, over the same period, to reach respective

values of $20,113.5m and $3,845.1m in 2018.

India - Hot Drinks 0102 - 0803 - 2013


MARKET DATA

Market value The Indian hot drinks market grew by 10.4% in 2013 to reach a value of $2,760.4 million.

The compound annual growth rate of the market in the period 200913 was 11.1%.

Table 1: India hot drinks market value: $ million, 200913

Year $ million Rs. million million % Growth

2009 1,813.3 106,053.5 1,363.7

2010 2,027.6 118,585.2 1,524.9 11.8%

2011 2,257.2 132,015.3 1,697.6 11.3%

2012 2,500.8 146,264.0 1,880.8 10.8%

2013 2,760.4 161,444.0 2,076.0 10.4%

CAGR: 200913 11.1%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: India hot drinks market value: $ million, 200913


India - Hot Drinks 0102 - 0803 - 2013


Market volume The Indian hot drinks market grew by 8.1% in 2013 to reach a volume of 682.8 million kg mln.

The compound annual growth rate of the market in the period 200913 was 8.2%.

Table 2: India hot drinks market volume: million kg mln, 200913

Year million kg mln % Growth

2009 498.3

2010 539.8 8.3%

2011 584.0 8.2%

2012 631.4 8.1%

2013 682.8 8.1%

CAGR: 200913 8.2%


Figure 2: India hot drinks market volume: million kg mln, 200913


India - Hot Drinks 0102 - 0803 - 2013


MARKET SEGMENTATION

Category segmentation Tea is the largest segment of the hot drinks market in India, accounting for 47.1% of the market's total value.

The Coffee segment accounts for a further 28.8% of the market.

Table 3: India hot drinks market category segmentation: $ million, 2013

Category 2013 %

Tea 1,300.5 47.1%

Coffee 795.1 28.8%

Other hot drinks 664.8 24.1%

Total 2,760.4 100%


Figure 3: India hot drinks market category segmentation: % share, by value, 2013


India - Hot Drinks 0102 - 0803 - 2013


Geography segmentation India accounts for 9.1% of the Asia-Pacific hot drinks market value.

China accounts for a further 49.2% of the Asia-Pacific market.

Table 4: India hot drinks market geography segmentation: $ million, 2013

Geography 2013 %

China 14,904.1 49.2

Japan 3,616.3 11.9

India 2,760.4 9.1

South Korea 1,397.1 4.6

Rest of Asia-Pacific 7,599.0 25.1

Total 30,276.9 100%


Figure 4: India hot drinks market geography segmentation: % share, by value, 2013


India - Hot Drinks 0102 - 0803 - 2013


Market share Tata Global Beverages Limited is the leading player in the Indian hot drinks market, generating a 15.4% share of the

market's volume.

GlaxoSmithKline Plc accounts for a further 14.6% of the market.

Table 5: India hot drinks market share: % share, by volume, 2013

Company % Share

Tata Global Beverages Limited 15.4%

GlaxoSmithKline Plc 14.6%

Unilever 14.5%

Wagh Bakri Corp 6.7%

Other 48.8%

Total 100%


Figure 5: India hot drinks market share: % share, by volume, 2013


India - Hot Drinks 0102 - 0803 - 2013


Market distribution Independent Retailers form the leading distribution channel in the Indian hot drinks market, accounting for a 79.9% share

of the total market's value.

Specialist Retailers accounts for a further 8.6% of the market.

Table 6: India hot drinks market distribution: % share, by value, 2013

Channel % Share

Independent Retailers 79.9%

Specialist Retailers 8.6%

Convenience Stores 7.5%

Supermarkets / hypermarkets 3.6%

Other 0.4%

Total 100%


Figure 6: India hot drinks market distribution: % share, by value, 2013


India - Hot Drinks 0102 - 0803 - 2013


MARKET OUTLOOK

Market value forecast In 2018, the Indian hot drinks market is forecast to have a value of $4,394.1 million, an increase of 59.2% since 2013.

The compound annual growth rate of the market in the period 201318 is predicted to be 9.7%.

Table 7: India hot drinks market value forecast: $ million, 201318

Year $ million Rs. million million % Growth

2013 2,760.4 161,444.0 2,076.0 10.4%

2014 3,058.0 178,849.1 2,299.8 10.8%

2015 3,356.4 196,301.3 2,524.2 9.8%

2016 3,684.2 215,475.1 2,770.8 9.8%

2017 4,023.5 235,316.9 3,025.9 9.2%

2018 4394.1 256,993.3 3,304.6 9.2%

CAGR: 201318 9.7%


Figure 7: India hot drinks market value forecast: $ million, 201318


India - Hot Drinks 0102 - 0803 - 2013


Market volume forecast In 2018, the Indian hot drinks market is forecast to have a volume of 1,009.4 million kg mln, an increase of 47.8% since

2013.

The compound annual growth rate of the market in the period 201318 is predicted to be 8.1%.

Table 8: India hot drinks market volume forecast: million kg mln, 201318

Year million kg mln % Growth

2013 682.8 8.1%

2014 742.6 8.8%

2015 802.3 8.0%

2016 868.1 8.2%

2017 935.6 7.8%

2018 1,009.4 7.9%

CAGR: 201318 8.1%


Figure 8: India hot drinks market volume forecast: million kg mln, 201318


India - Hot Drinks 0102 - 0803 - 2013


FIVE FORCES ANALYSIS

The hot drinks market will be analyzed taking manufacturers of hot drinks as players. The key buyers will be taken as

retailers of hot drinks, and growers of tea leaves, coffee beans and cocoa beans as the key suppliers.

Summary

Figure 9: Forces driving competition in the hot drinks market in India, 2013


The degree of competition in this market is strengthened by low switching costs and limited possibilities of product

differentiation, giving the advantage to the well established players who can offer lower prices.

The Indian hot drinks market is fairly fragmented, with the top three players holding just over 44% of the total market

volume.

Independent retailers form the most significant distribution channel in the hot drinks market, and their sheer number and

small size decreases buyer power.

The main suppliers are growers of tea leaves, coffee beans and cocoa beans. The low economic status of some of the

supplying countries, combined with the large number of independent growers and the relatively undifferentiated nature of

the product, limit the supplier power.

Low levels of product differentiation, coupled with rather insignificant switching costs, attract new entrants to the hot

drinks market. However, the existence of international players, with their portfolio of strong brands, constitutes a

considerable entry barrier.

Consumption of most hot drinks is heavily influenced by weather, regardless of climate.

The hot drinks market is expected to see positive value growth towards 2018. Key drivers are expected to arrive from the

coffee sector, where coffee pod systems are expected to gain more popularity, and also from manufacturers that are

becoming increasingly interested in launching 'light' or reduced sugar variants.

India - Hot Drinks 0102 - 0803 - 2013


Buyer power

Figure 10: Drivers of buyer power in the hot drinks market in India, 2013


In India, the main distribution channels for the hot drinks market are independent retailers, which account for 79.9% of

the total market volume.

The market is extending beyond urban centers into smaller towns and provincial areas. The two most popular products in

terms of consumption are tea and coffee. There are some possibilities of product differentiation within this market, i.e. in

terms of flavoring and alternative blends; however, drink producers usually offer a range of various products, often

similar within a given category. Low product differentiation and switching costs boost the buyer power to a certain extent.

Retailers need to stock brands that are popular with consumers, even if they are more expensive, reducing their power.

Overall, buyer power within the hot drinks market is assessed as moderate.

India - Hot Drinks 0102 - 0803 - 2013


Supplier power

Figure 11: Drivers of supplier power in the hot drinks market in India, 2013


Major suppliers to manufacturers of hot drinks products are growers of tea leaves, coffee beans and cocoa beans.

Tea, coffee and cocoa plantations require specific climatic conditions for growth and are typically located in Africa, South

America and Asia. Tea may also be sold from the tea garden by private sale or at offshore auctions. The low economic

status of some of the countries in these regions, combined with the large number of independent growers and the

relatively undifferentiated nature of the product, limit the supplier power of growers.

Tea and coffee prices are governed by quality, supply and demand. Furthermore, in the supply chain, brokers often act

as middle men between manufacturers and growers.

Fair Trade products suppliers are becoming more and more popular, due to the rising interest in values such as

provenance and the livelihoods of the farmers and increased awareness and support for Fair Trade among customers.

Overall, supplier power with respect to the hot drinks market is considered to be moderate.

India - Hot Drinks 0102 - 0803 - 2013


New entrants

Figure 12: Factors influencing the likelihood of new entrants in the hot drinks market in India, 2013


The consumer market has been changing greatly in recent years. Lifestyles are becoming busier with longer working

hours, more women joining the workforce and a rising number of single-person households. These trends have led to

increasing demand for convenience products and a subsequent growth in the fast food sector. Specialist players, who

market drinking as a lifestyle choice, such as coffee store chains and motorway stations are increasing their share of the

hot drinks market.

Easy access to suppliers and distribution chains, along with little regulation, lure new players into the market. Negligible

switching costs for consumers mean that they are free to shift to new players, if they offer better priced products.

However, newcomers could face a price war from existing players, especially when they move into a more concentrated

segment.

The brand strength of the major chains is considerable, which may negate much of the effect of low switching costs.

Large multi-national companies, who manufacture products with exceptional brand strength and generally operate within

other consumer markets, e.g. Tata, GSK and Unilever, dominate the market through a variety of strong brands. It may be

difficult for new entrants to compete effectively with established players.

The leading players typically operate with high economies of scale allowed by bulk production and this may constitute a

considerable entry barrier for newcomers.

Moreover, innovative products, being introduced by the already established players, reduce the opportunity for new

entrants to differentiate and establish their product. For example, in 2013 Coca-Cola launched the world's first canned

hot and fizzy drink in Japan. The new beverage, called Canada Dry Hot Ginger Ale, is the result of the companys

research into how to combine both heat and carbonated bubbles in a can.

India - Hot Drinks 0102 - 0803 - 2013


However, there are opportunities still to find a niche segment and successfully enter this market both in food service and

retail. As consumers are becoming more health-conscious, there is a growing demand for healthier food choices, i.e.

locally grown, organic, low-fat, low-calorie and cholesterol-free products. Convenience is also important, as proven by

the rising popularity of soluble/instant formats. Specialty and more premium products perform especially well, meaning

that consumers are reluctant to give up that non-essential treat. Due to the promotional efforts by producers and

manufacturers, stressing the heightened quality and flavors that can be achieved in coffee and tea beverages, consumer

demand for greater variety and high-end products is on the rise. Convenience-oriented positioning focused on time and

speed claims, together with clever packaging that allows consumers to quickly make their cup of coffee are also popular.

The Indian market has seen dynamic double-digit growth in recent years, which is likely to attract newcomers.

Overall, new entrants are considered to be a moderate threat to the hot drinks market.

India - Hot Drinks 0102 - 0803 - 2013


Threat of substitutes

Figure 13: Factors influencing the threat of substitutes in the hot drinks market in India, 2013


The most popular products within the hot drinks market include tea and coffee products. They form an important part of

many countries cultures, limiting the threat of substitution.

Consumers may opt to reduce their caffeine intake due to health concerns, which may influence hot drinks consumption

somewhat, although decaffeinated and lighter options are now widely available in many countries.

Soft drinks, such as functional drinks, can be potential substitutes. However, considering the high proportion of the

population consuming hot drinks products, it is unlikely that such substitution would substantially impact upon sales.

Tea and coffee are also consumed for their therapeutic qualities, with a number of scientific papers reporting the

potential benefits of these beverages. Various researchers claim that the benefits of tea and coffee may be due to their

antioxidant content, with the flavonoids in tea, in particular, thought to contribute to reduced risk of heart disease.

However, the underlying beneficial mechanism is still not known.

Overall, the threat of substitutes in the Indian hot drinks market is assessed as very weak.

India - Hot Drinks 0102 - 0803 - 2013


Degree of rivalry

Figure 14: Drivers of degree of rivalry in the hot drinks market in India, 2013


The Indian hot drinks market is fairly fragmented, with the top three players holding a little over 44% of the total market

by volume.

Many of the leading food retailers have developed their own private label ranges to compete with the premium brands.

The sheer number of players, as well as the presence of large, international incumbents, benefiting from economies of

scale, boost the rivalry within this market.

The existence and rising popularity of premium and gourmet coffee brands, means that demand for greater variety and

high-end products is on the rise and increases rivalry in the market further.

The degree of competition is strengthened by low switching costs and limited possibilities of product differentiation,

giving the advantage to the well established players who can offer lower prices. High exit costs, due to the need to divest

large scale production facilities, act as an exit barrier within the hot drinks market.

The economic downturn that hit the economy in 2009 saw disposable incomes shrink and consumer confidence hit an

all-time low. However, it appears that the hot drinks market was able to remain relatively unaffected, as consumers

continued to seek comfort in their favorite hot beverage. This growth points to some underlying resilience in the hot

drinks market, suggesting that it has the potential to further expand once the economy picks up.

Overall, rivalry in the hot drinks market is assessed as moderate.

India - Hot Drinks 0102 - 0803 - 2013


LEADING COMPANIES

GlaxoSmithKline Plc

Table 9: GlaxoSmithKline Plc: key facts

Head office: 980 Great West Road, Brentford, Middlesex, TW8 9GS, GBR

Telephone: 44 20 8047 5000

Website: www.gsk.com

Financial year-end: December

Ticker: GSK

Stock exchange: London and New York

SOURCE: COMPANY WEBSITE M A R K E T L I N E

GlaxoSmithKline Plc (GSK or 'the company') is a leading global provider of pharmaceutical and consumer health-related

products. The company has a global manufacturing and R&D presence with a network of 87 manufacturing sites and

R&D centers in the UK, the US, Spain, Belgium and China. The major markets for the company's products are the US,

the UK, France, Germany, Italy and Spain. The company operates in more than 100 countries and its products are sold

in about 150 countries. GSK is headquartered in Brentford, the UK, and employed 99,488 people as of December 31,

2012.

The company operates through two business segments: pharmaceuticals and vaccines, and consumer healthcare.

The pharmaceuticals and vaccines segment offer products for 12 main therapeutic areas: respiratory, central nervous

system (CNS), anti-virals, metabolic, vaccines, cardiovascular and urogenital, dermatology, anti-bacterials, and oncology

and emesis, rare diseases, immuno-inflammation and HIV.

For respiratory therapy, GSK offers: Seretide/Advair, a bronchodilator and an anti-inflammatory inhaler; Flixotide/Flovent

and Becotide/Beclovent, inhaled steroids for the treatment of inflammation associated with asthma and COPD (chronic

obstructive pulmonary disease); Serevent, a bronchodilator to treat asthma and COPD; Ventolin, to treat bronchospasm

and Flixonase/Fionase and Beconase, for the treatment of perennial and seasonal rhinitis. The company markets the

following products in CNS therapy area: Seroxat/Paxil and Paxil CR, for the treatment of major depressive disorder;

Wellbutrin, an anti-depressant; Imigran/Imitrex, for the treatment of migraine and cluster headache; Lamictal, for the

treatment of epilepsy and bipolar disorder; and Requip, for Parkinson's disease and restless legs syndrome (RLS).

GSK's major products in the anti-virals area include: Combivir, Ziagen, Trizivir, Epzicom/Kivexa and Lexiva/Telzir for HIV

treatment; Zeffix, for the treatment of Hepatitis B; and Valtrex, for episodic genital herpes. GSK offers the following

products for metabolic therapy area: Avandia, an insulin-sensitizing agent; Avandamet, an insulin resistance that

decreases glucose production; Avandaryl, an insulin resistance and pancreatic insulin production stimulant; and

Bonviva/Boniva, for the treatment of osteoporosis.

The company markets about 30 vaccines across the globe. Its major vaccines include Infanrix, a vaccine against

diphtheria, tetanus and pertussis; Infanrix penta/Pediarix, for protection against hepatitis B and polio; Infanrix hexa, for

the protection against Haemophilus influenza Type B; Boostrix, for the protection against pertussis; Fluviral, a seasonal

flu vaccine; Priorix, a measles, mumps and rubella vaccine; Typherix, a vaccine for typhoid fever; Varilrix, a vaccine

against varicella or chicken pox; Priorix-Tetra, for the prevention of measles, mumps, rubella and varicella (MMRV); and

Mencevax, to prevent meningitis and Rotarix, for pediatric immunization. GSK's hepatitis vaccines include Havrix for

protection against hepatitis A; Engerix-B for protection against hepatitis B; Twinrix, combined hepatitis A and B vaccine;

FENDrix, for the prevention of Hepatitis B in patients with renal insufficiency including high-risk groups such as pre-

hemodialysis and hemodialysis patients.

India - Hot Drinks 0102 - 0803 - 2013


In the cardiovascular and urogenital therapy area, GSK offers Coreg, for treating patients with mild, moderate and severe

heart failure, heart attack or hypertension; Levitra, for male erectile dysfunction; Avodart, for benign prostatic

hyperplasia; Arixtra, for the prophylaxis of deep vein thrombosis; Fraxiparine, for prophylaxis of thromboembolic

disorders; and Integrilin, for the prevention of early myocardial infarction.

In the dermatology therapy area, the company through its subsidiary Stiefel, offers pharmaceutical, over-the-counter and

aesthetic dermatology products.

In the anti-bacterials and anti-malarials therapy area, the company markets Augmentin, for respiratory tract infections;

Augmentin ES-600, to treat children with recurrent or persistent middle ear infections; Augmentin XR, for pneumonia or

acute bacterial sinusitis; Ceftin/Zinnat, an oral antibiotic; Malarone, an oral anti-malarial. GSK offers the following

products for oncology and emesis therapy: Zofran, to prevent nausea and vomiting associated with chemotherapy and

radiotherapy for cancer; Hycamtin, treatment for ovarian, cervical and small cell lung cancer; Bexxar, for patients with

CD20 follicular, non-Hodgkin's lymphoma; and Arranon (nelarabine), for patients with T-cell acute lymphoblastic

leukemia and T-cell lymphoblastic lymphoma. GSK also markets Betnovate and Cutivate, anti-inflammatory steroid

products; Relafen, a non-steroidal anti-inflammatory drug and Zantac, for the treatment of peptic ulcer disease, and

gastric acid related disorders.

GSK operates a standalone unit specializing in the development and commercialization of medicines for rare diseases.

In this area, the company offers Volibris to treat pulmonary hypertension and Mepron to treat Pneumocystis jiroveci

pneumonia.

In the immuno-inflammation therapy area, the company offers Benlysta, indicated for the treatment of adult patients with

active, autoantibody-positive systemic lupus erythematosus.

GSK offers products in the HIV area including: Combivir, Epivir, Epzicom/Kivexa, Lexiva, Selzentry and Trizivir.

The consumer healthcare segment markets OTC medicines, oral healthcare and nutritional healthcare products. The

company's principal OTC medicines include Panadol, a paracetamol/acetaminophen analgesic; smoking control

products, including Nicorette, NicoDerm, NiQuitin CQ and Nicabate; Tums, a calcium-based antacid; Citrucel, a

therapeutic bulk fiber laxative; Contac, for the treatment of colds; and Abtei, a vitamins, minerals and herbal

supplements; Abreva, for the treatment of cold sores; and FiberChoice, daily fiber supplements. GSK offers a range of

oral care products such as toothpastes and mouthwashes under the Aquafresh, Odol, Sensodyne and Macleans brand

names; and toothbrushes under the Aquafresh and Dr Best brands. In addition, denture care products are available

principally under the Polident, Poligrip and Corega brand names. Under the nutritional healthcare products, the company

offers hot drinks such as Horlicks, a milk-based malted food and chocolate drink.

GSK sold the Lucozade and Ribena brands to Suntory in September 2013.

Key Metrics

The company recorded revenues of $41,433m in the fiscal year ending December 2013, an increase of .3% compared to

fiscal 2012. Its net income was $8,498m in fiscal 2013, compared to a net income of $7,136m in the preceding year.

India - Hot Drinks 0102 - 0803 - 2013


Table 10: GlaxoSmithKline Plc: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 44,345.8 44,383.3 42,812.3 41,317.8 41,433.5

Net income (loss) 8,646.2 2,554.3 8,224.2 7,136.2 8,497.7

Total assets 67,003.3 66,015.3 64,217.6 64,835.1 65,790.2

Total liabilities 50,211.0 50,781.6 50,418.9 54,287.9 53,578.2

Employees 99,913 99,913 96,461 99,488 99,451

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 11: GlaxoSmithKline Plc: key financials ()

million 2009 2010 2011 2012 2013

Revenues 28,368.0 28,392.0 27,387.0 26,431.0 26,505.0

Net income (loss) 5,531.0 1,634.0 5,261.0 4,565.0 5,436.0

Total assets 42,862.0 42,230.0 41,080.0 41,475.0 42,086.0



Table 12: GlaxoSmithKline Plc: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 19.5% 5.8% 19.2% 17.3% 20.5%

Revenue growth 16.5% 0.1% (3.5%) (3.5%) 0.3%

Asset growth 8.8% (1.5%) (2.7%) 1.0% 1.5%

Liabilities growth 3.4% 1.1% (0.7%) 7.7% (1.3%)

Debt/asset ratio 74.9% 76.9% 78.5% 83.7% 81.4%

Return on assets 13.4% 3.8% 12.6% 11.1% 13.0%

Revenue per employee $443,844 $444,220 $443,830 $415,304 $416,622

Profit per employee $86,538 $25,565 $85,259 $71,729 $85,446


India - Hot Drinks 0102 - 0803 - 2013


Figure 15: GlaxoSmithKline Plc: revenues & profitability


Figure 16: GlaxoSmithKline Plc: assets & liabilities


India - Hot Drinks 0102 - 0803 - 2013


Tata Global Beverages Limited

Table 13: Tata Global Beverages Limited: key facts

Head office: 1 Bishop Lefroy Road, Kolkata, West Bengal 700020, IND

Telephone: 91 33 2281 1807

Fax: 91 33 2281 1199

Website: www.tataglobalbeverages.com

Financial year-end: March

Ticker: 500800, TATAGLOBAL

Stock exchange: Bombay, India


Tata Global Beverages Limited (TGBL), through its subsidiaries, joint ventures and associates, is engaged in the trading,

production and distribution of tea, coffee and water. The company has branded beverage business operations mainly in

India, the US, Canada, Australia and Europe, plantation business in India/Sri Lanka and extraction business mainly in

lndia, the US and China. TGBL's brands have a significant presence in over 70 countries across the world.

The company's operations are divided into three business segments: tea, coffee and other produce, and others.

The tea segment encompasses the cultivation and manufacture of black tea and instant tea, tea buying and blending,

and sale of tea in bulk and in value added form.

The coffee and other products segment is engaged in the cultivation of coffee, pepper and other plantation crops. It is

also engaged in the conversion of coffee into value added products such as roast and ground coffee and instant coffee.

The others segment includes the sale of natural mineral water, other minor crops, curing operations of coffee, and

trading of products required for coffee plantations.

The company's brands include Tetley, Tata Tea, Good Earth, Eight O'Clock Coffee, Himalayan Water, Grand, Vitax,

Jemca, Tata Coffee, Joekels, ACTIVATE, Tata Water Plus and Tata Gluco Plus. Tata Tea in India has regional brands

like Kannan Devan, Chakra Gold, Gemini, Life, Tata Tea Agni, and Tata Tea Gold.

Key Metrics

The company recorded revenues of INR28,678 million ($490 million) in the financial year ended March 2014 (FY2014),

an increase of 17.6 % over FY2013. The net profit was INR4,470 million ($76.4 million) in FY2014, an increase of 72.8%

over FY2013.

India - Hot Drinks 0102 - 0803 - 2013


Unilever

Table 14: Unilever: key facts

Head office: Unilever House, 100 Victoria Embankment, London, EC4Y 0DY, GBR

Telephone: 44 20 7822 5252

Fax: 44 20 7822 5951

Local office: Hindustan Unilever Limited , Unilever House, B. D. Sawant Marg, Chakala, Andheri (E), Mumbai 400 099, IND

Telephone: 91 22 39830000

Fax: 91 22 28249438

Website: www.unilever.com

Financial year-end: December

Ticker: ULVR

Stock exchange: London


Unilever is a dual-listed company with two parent companies, Unilever N.V. and Unilever PLC. Unilever N.V. is a public

limited company registered in the Netherlands, whereas Unilever PLC is a public limited company registered in England

and Wales. These two companies function as a single operating business, but retain separate legal identities and stock

exchange listings. The two parent companies, together with their Group companies, operate as a single entity (Unilever).

Unilever is one of the world's premier FMCG companies with a host of well-known brands in the foods, home and

personal care categories.

The group operates through four product segments: personal care, foods, refreshment, and home care.

The personal care segment includes skin care and hair care products, deodorants and oral care products. The group's

major brands in this segment include Dove, Lux, Rexona, Sunsilk, Axe, Pond's, Lifebuoy, Vaseline, and Close Up.

The foods segment includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and

spreads, and cooking products such as liquid margarines. Key brands operating under this segment are Knorr, Blue

Band, Rama, Hellmann's and Amora.

Unilever's refreshment segment includes sales of ice cream, tea-based beverages, weight-management products, and

nutritionally enhanced staples sold in developing markets. Wall's, Lipton, PG Tips, Lyons, SlimFast, Becel and Flora are

the key brands sold under the refreshments segment.

The home care segment includes sales of home care products, such as powders, liquids and capsules, soap bars and a

wide range of cleaning products. Unilever's global brands in this segment include Omo, Surf, Comfort, Cif, Domestos and

Sunlight.

Hindustan Unilever Limited is Unilever's Indian subsidiary. The company's portfolio includes brands such as Lux,

Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent,

Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. It employs around 16,000 people.

Key Metrics

The company recorded revenues of $66,103m in the fiscal year ending December 2013, a decrease of 3.0% compared

to fiscal 2012. Its net income was $6,428m in fiscal 2013, compared to a net income of $5,947m in the preceding year.

India - Hot Drinks 0102 - 0803 - 2013


Table 15: Unilever: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 52,863.3 58,755.9 61,683.0 68,130.4 66,103.4

Net income (loss) 4,473.5 5,633.7 6,136.8 5,947.0 6,427.5

Total assets 49,137.2 55,045.7 63,070.1 61,283.4 60,416.6


Employees 168,000 165,000 169,000 173,000 174,381


Table 16: Unilever: key financials ()

million 2009 2010 2011 2012 2013

Revenues 39,823.0 44,262.0 46,467.0 51,324.0 49,797.0

Net income (los) 3,370.0 4,244.0 4,623.0 4,480.0 4,842.0

Total assets 37,016.0 41,467.0 47,512.0 46,166.0 45,513.0



Table 17: Unilever: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 8.5% 9.6% 9.9% 8.7% 9.7%

Revenue growth (1.7%) 11.1% 5.0% 10.5% (3.0%)

Asset growth 2.4% 12.0% 14.6% (2.8%) (1.4%)

Liabilities growth (5.0%) 6.6% 24.9% (6.6%) 0.8%

Debt/asset ratio 66.1% 62.9% 68.6% 66.0% 67.4%

Return on assets 9.2% 10.8% 10.4% 9.6% 10.6%

Revenue per employee $314,663 $356,096 $364,988 $393,817 $379,074

Profit per employee $26,628 $34,144 $36,313 $34,376 $36,859


India - Hot Drinks 0102 - 0803 - 2013


Figure 17: Unilever: revenues & profitability


Figure 18: Unilever: assets & liabilities


India - Hot Drinks 0102 - 0803 - 2013


Gujarat Tea Processors And Packers Limited (Wagh Bakri)

Table 18: Gujarat Tea Processors And Packers Limited (Wagh Bakri): key facts

Head office: WaghBakri House, Opp. Parimal Garden, Ambawadi, Ahmedabad, 380006, IND

Telephone: 91 79 2640 9631

Fax: 91 79 2640 9640

Website: www.waghbakritea.com


Gujarat Tea Processors And Packers Limited is one of the largest producers and suppliers of tea products to consumers

in India and internationally. It was founded in 1892 and is based in Ahmedabad, India with regional offices in Mumbai,

New Delhi, and Kolkata, India.

The companys teas are sold in over 30 countries across the world including: the US, Canada, the UK, Zambia, Togo,

Qatar, Oman, Australia and New Zealand, as well as its home market of India.

The company markets its teas through three brands: Wagh Bakri, Good Morning and Mili. Its range of teas includes:

Darjeeling, Ice Tea, Organic Tea, Earl Grey, Assam and English Breakfast.

Wagh Bakri distributes over 30 million kg of tea each year. The company enjoys a particularly large market presence in

Rajasthan, Madhya Pradesh, Maharashtra, Delhi, Hyderabad and Gujarat state, where it owns the company Gujarat Tea

Processors. It has recently forayed in to Chhattisgarh and Goa.

Key Metrics

As a privately-owned company, Wagh Bakri is not obliged to publish its financial results.

India - Hot Drinks 0102 - 0803 - 2013


MACROECONOMIC INDICATORS

Country Data

Table 19: India size of population (million), 200913

Year Population (million) % Growth

2009 1,171.5 1.6%

2010 1,190.7 1.6%

2011 1,210.2 1.6%

2012 1,226.4 1.3%

2013 1,241.7 1.2%


Table 20: India gdp (constant 2005 prices, $ billion), 200913

Year Constant 2005 Prices, $ billion % Growth

2009 1,127.9 8.5%

2010 1,243.7 10.3%

2011 1,326.2 6.6%

2012 1,389.0 4.7%

2013 1,458.7 5.0%


Table 21: India gdp (current prices, $ billion), 200913

Year Current Prices, $ billion % Growth

2009 1,365.3 11.6%

2010 1,708.5 25.1%

2011 1,880.1 10.0%

2012 1,858.7 (1.1%)

2013 1,876.8 1.0%


India - Hot Drinks 0102 - 0803 - 2013


Table 22: India inflation, 200913

Year Inflation Rate (%)

2009 10.9%

2010 12.0%

2011 9.1%

2012 10.2%

2013 9.5%


Table 23: India consumer price index (absolute), 200913

Year Consumer Price Index (2005 = 100)

2009 135.7

2010 152.0

2011 165.8

2012 182.8

2013 200.1


Table 24: India exchange rate, 200913

Year Exchange rate ($/Rs.) Exchange rate (/Rs.)

2009 48.8500 67.9264

2010 45.9361 60.9708

2011 46.846 65.1733

2012 53.6119 68.6802

2013 58.4859 77.7676


India - Hot Drinks 0102 - 0803 - 2013


APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in-house databases

provide the foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

India - Hot Drinks 0102 - 0803 - 2013


Industry associations

Tea Board India

14, B.T.M Sarani, P.O. Box 2172 Kolkata 700 001, India

Tel.: 91 33 2235 1411

Fax: 91 33 2221 5715

www.teaap2.indiateaportal.com

Coffee Board of India No. 1 Dr Ambedkar Veedhi IND-560 001 Bangalore, India

Tel.: 91 80 225 2917

Fax: 91 80 225 5557

www.indiacoffee.org

Related MarketLine research

Industry Profile

Global Hot Drinks

Hot Drinks in the United States

Hot Drinks in China

Hot Drinks in Europe

Hot Drinks in United Kingdom

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