Retail & Food & Drink Opportunities in India

An Expert's View about Beverages in India

Posted on: 1 Oct 2010

India with a population of 1.08 billion, growing at 1.6 % per annum, is a large and growing market for Retail. Opportunities for UK retail companies in India are growing

Sector briefing Retail & Food & Drink Opportunities in India Why India? India with a population of 1.08 billion, growing at 1.6 % per annum, is a large and growing market for Retail. Retail has emerged as one of the most dynamic and fast paced sector. It accounts for over 10% of the country's GDP and 8% of the total employment. With the fast growing economy, changing life styles, and favourable demographic patterns, number of people with purchasing ability is expected to grow to over 600 million by 2010 ? sufficient to establish India as one of the largest consumer markets of the world. Though the market has enormous potential, it is still undeveloped. It is expected that the size of the retail sector will cross £51 billion by 2012 (as per a joint report by A T Kearney and the Confederation of Indian Industry. Find general information on the Indian market conditions on UKTI?s website. The Doing Business Guide for India gives an overview of India?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Retail and Food & Drink opportunities in India and back end management; warehousing and Opportunities waste management. Opportunities for UK retail companies in India Alcoholic beverages, beer etc are growing ? key areas are detailed below: India represents one of the world's largest whisky markets. It is around 70 - 75 million The food and grocery sector presents the cases, of which imported whiskies account for most significant potential in the Indian market, around 300,000 cases per annum, and is as consumer spending is highest on food. growing at 35 - 40 per cent in India. Major supermarket chains such as Wal Mart Metro, Bookers, have started to operate in Beer sales in India are forecast to grow at a India. Tesco has tied up with Trent (part of compound annual growth rate of 17.2% by Tata group) for wholesale cash-and-carry 2011. With India offering huge potential for operations in India. Besides there are over 200 growth and further deregulation expected in food chains operating, to name a few - retail sales and duties, good potential exists for Subway, Mcdonalds, KFC, Dominos, Donutking, companies keen on entering the alcoholic Costa Coffee, Yo China, Slice of Italy etc beverage and beer sector in India. Retail of apparel, jewellery and Some of the leading UK companies active in accessories, consumer durable, catering the Indian market are Diageo, Per nod Ricard, services and home improvement is a United Spirits (acquisition of Whyte & Mackay), segment of growth in India. Potential also Highland distillers, Bowmore Morrison, Allied exists for strategic partnerships in high fashion Domeq and Seagram. garments, accessories etc and for global sourcing. Food and drink including Jams, Sauces Cheese; Confectionery, Biscuits Being one of fastest growing economy in the The Indian food and drink sector is highly Asia-Pacific region, India is expected to be the fragmented. There are large and small next hub of luxury goods consumption. Besides companies operating in the sector. The 4 one million niche rich Indians, it has a huge metros account for more than 50 % of population of young shoppers who aspire for an consumption of imported food and drink international lifestyle. These shoppers have enough exposure to international brands. Annual production of jams is valued at £17.50 million, while sauce and ketchup is estimated Some of the UK FMCG good manufacturers at £62.5 million, Indian confectionery and and retailers in India are Unilever (Hindustan chocolate market is estimated at £306 million. Unilever), Marks & Spencer, Mother care, Sugar confectionery accounts for 61% of this Cadbury Schweppes, Debenhams, Body shop, market, while balance 39% accounts for Next, Reid & Taylor, Savile Row, Paul Smith, chocolates and mints & gums. The Indian John Smedley, Jimmy Choo, and Burberry. biscuit market is estimated at 1.1 million tonnes per annum, valued at £ 588 million. Supply chain and Retail services About 90% of Indians buy biscuits. Hard-boiled Currently almost 35-40% of the agricultural candies and toffees together constitute the produce in India is lost during transit. With largest segment accounting for 69% share. growing demand for processed and Gums are the second largest with an 18% convenience food, the demand for cold storage share. Other key segments include éclairs, and distribution centre is a key infrastructure lozenges and mints. requirement of the Industry. Other areas equally important are packaging, processing, Cheese is regarded as a breakfast food in branding and safe storage and transportation India. Some of the imported brands available of FMCG goods and services. in the market are Pilgrims choice, Laughing cow, Kraft, Gruyeri, Lebon etc. Some of the Good potential also exists for UK companies leading brands in the sugar confectionery engaged in retail services, fixtures, design & category are Perfetti, Parrys, Parle, Nutrine, development, education & training and Candico, Ravalgaon, Wrigley, Nestle and associated services such as design and Cadbury. While in the biscuit segment, it is engineering of shopping Mall; Supply Chain Britannia,Parle, Cremica, ITC, GSK- Horlicks management techniques and technology; IT and McKivities. UK Trade & Investment Sector briefing: Retail and Food & Drink opportunities in India If you have any questions on the opportunities above, contact the UKTI staff. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website UK Trade & Investment Sector briefing: Retail and Food & Drink opportunities in India Major events and activities UKTI contacts Food World/Annapurna 2010 One Name Kiraan Sharma Contact: Kiraan Sharma Senior Trade & Investment Adviser Email: UK Trade & Investment Time: 24-26 November 2010 British High Commission, India Tel: (0091 11) 2419 2155 Images Retail Forum Email: ]Contact: Kiraan Sharma/Prithiraj Panigarh Email: Another Name Divya Divakaran Trade & Investment Adviser Time: 28-29 September 2010 UK Trade & Investment British High Commission, India Taste 2011 Tel: (0091 11) 2419 2157 Contact: Kiraan Sharm/ Prithiraj Panigarh Email: Email: Time: 27-29 January 2011 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Retail and Food & Drink opportunities in India Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Indian market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in India, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Retail and Food & Drink opportunities in India
Posted: 01 October 2010

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