Financial Analysis Of Nestle India And Britannia
Executive Summary
The food processing industry is one of the most important sectors in India considering its linkage to agriculture and food consumption in an economy of a billion plus population. The food processing industry is also significant in terms of its socio-economic bearing on the economy. It employs 13 million people directly and about 35 million people indirectly. The worth of the Indian processed foods sector stood at US$ 157 billion in 2012 and is expected to touch USD 255 billion by FY2016 with 13% growth rate per annum. This sector has all the basic attributes (like abundance of raw-material, basic skill sets etc.) to contribute highly in India 's manufacturing output.
To better understand the sector, analysis of two biggest players in food processing industry in India- Nestle India and Britannia was done. The financial analysis of the two players was done with the objective of understanding the reasons behind the competitive edge of the market leader in the sector as well as understanding the steps or initiatives that can be taken by the rival to challenge the market leader.
Food Processing Industry in India
India is the 2nd largest food producer in the world only falling behind China and has a potential to become one of the largest producer of food and agriculture in the world. Food Processing Industry in India is one of the sunrise sectors which has gained importance in the recent times. It forms a synergy between agriculture and manufacturing sectors there by helping in addressing one of the very critical problems our country is facing that is reducing the wastage of agricultural produce. India is one of the largest exporters of food products with the average growth rate of FPI for the last five years being 8.6% which is higher than the growth rates of agriculture (3.8%) and manufacturing (7.7%). It is also expected that the total production is going to double in
The food processing industry is one of the most important sectors in India considering its linkage to agriculture and food consumption in an economy of a billion plus population. The food processing industry is also significant in terms of its socio-economic bearing on the economy. It employs 13 million people directly and about 35 million people indirectly. The worth of the Indian processed foods sector stood at US$ 157 billion in 2012 and is expected to touch USD 255 billion by FY2016 with 13% growth rate per annum. This sector has all the basic attributes (like abundance of raw-material, basic skill sets etc.) to contribute highly in India 's manufacturing output.
To better understand the sector, analysis of two biggest players in food processing industry in India- Nestle India and Britannia was done. The financial analysis of the two players was done with the objective of understanding the reasons behind the competitive edge of the market leader in the sector as well as understanding the steps or initiatives that can be taken by the rival to challenge the market leader.
Food Processing Industry in India
India is the 2nd largest food producer in the world only falling behind China and has a potential to become one of the largest producer of food and agriculture in the world. Food Processing Industry in India is one of the sunrise sectors which has gained importance in the recent times. It forms a synergy between agriculture and manufacturing sectors there by helping in addressing one of the very critical problems our country is facing that is reducing the wastage of agricultural produce. India is one of the largest exporters of food products with the average growth rate of FPI for the last five years being 8.6% which is higher than the growth rates of agriculture (3.8%) and manufacturing (7.7%). It is also expected that the total production is going to double in
References: e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 9, Issue 4 (Mar. - Apr. 2013), PP 45-52 Working Capital Trends and Liquidity Analysis of Fmcg Sector