Savory Snacks in India: July 2017

MarketLine Industry Profile
Savory Snacks in
India
July 2017
Reference Code: 0102-0199
Publication Date: July 2017
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India - Savory Snacks 0102 - 0199 - 2016
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EXECUTIVE SUMMARY
Market value
The Indian savory snacks market grew by 10.9% in 2016 to reach a value of $5,472.2 million.
Market value forecast

In 2021, the Indian savory snacks market is forecast to have a value of $8,373.9 million, an increase of 53% since 2016.
Market volume
The Indian savory snacks market grew by 27.8% in 2016 to reach a volume of 1,671.3 million kilograms.
Market volume forecast

In 2021, the Indian savory snacks market is forecast to have a volume of 1,839.3 million kilograms, an increase of 10.1%
since 2016.
Category segmentation
Ethnic/traditional snacks is the largest segment of the savory snacks market in India, accounting for 48.7% of the
market's total value.
Geography segmentation
India accounts for 18.7% of the Asia-Pacific savory snacks market value.
Market share
PepsiCo, Inc. is the leading player in the Indian savory snacks market, generating a 30.6% share of the market's value.
Market rivalry
High operating and exit costs drive up rivalry in this market, although the larger players also tend to be fairly well
diversified, alleviating this pressure somewhat. Moreover, strong growth of the Indian savory snacks market during the
review period decreased rivalry to an extent.

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 .................................................................................................................................................. 20
Degree of rivalry ........................................................................................................................................................ 21
Leading Companies....................................................................................................................................................... 22

Balaji Wafers Private Limited..................................................................................................................................... 22
Haldiram Foods International Pvt Ltd ........................................................................................................................23
ITC Limited ................................................................................................................................................................ 24
PepsiCo, Inc. ............................................................................................................................................................. 28
Macroeconomic Indicators............................................................................................................................................. 32
Country data .............................................................................................................................................................. 32
Methodology .................................................................................................................................................................. 34
Appendix........................................................................................................................................................................ 35
About MarketLine ...................................................................................................................................................... 35

LIST OF TABLES
Table 1: India savory snacks market value: $ million, 201216 ......................................................................................8
Table 2: India savory snacks market volume: million kilograms, 201216......................................................................9
Table 3: India savory snacks market category segmentation: $ million, 2016 ..............................................................10
Table 4: India savory snacks market geography segmentation: $ million, 2016 ...........................................................11
Table 5: India savory snacks market share: % share, by value, 2016 ..........................................................................12
Table 6: India savory snacks market distribution: % share, by value, 2016 ..................................................................13
Table 7: India savory snacks market value forecast: $ million, 201621 ......................................................................14
Table 8: India savory snacks market volume forecast: million kilograms, 201621 ......................................................15
Table 9: Balaji Wafers Private Limited: key facts ..........................................................................................................22
Table 10: Haldiram Foods International Pvt Ltd: key facts ............................................................................................23
Table 11: ITC Limited: key facts .................................................................................................................................... 24
Table 12: ITC Limited: key financials ($) .......................................................................................................................25
Table 13: ITC Limited: key financials (Rs.)....................................................................................................................26
Table 14: ITC Limited: key financial ratios.....................................................................................................................26
Table 15: PepsiCo, Inc.: key facts ................................................................................................................................. 28
Table 16: PepsiCo, Inc.: key financials ($) ....................................................................................................................29
Table 17: PepsiCo, Inc.: key financial ratios..................................................................................................................30
Table 18: India size of population (million), 201216 ....................................................................................................32
Table 19: India gdp (constant 2005 prices, $ billion), 201216 .....................................................................................32
Table 20: India gdp (current prices, $ billion), 201216 ................................................................................................32
Table 21: India inflation, 201216 ................................................................................................................................. 33
Table 22: India consumer price index (absolute), 201216...........................................................................................33
Table 23: India exchange rate, 201216 .......................................................................................................................33

LIST OF FIGURES
Figure 1: India savory snacks market value: $ million, 201216 .....................................................................................8
Figure 2: India savory snacks market volume: million kilograms, 201216.....................................................................9
Figure 3: India savory snacks market category segmentation: % share, by value, 2016..............................................10
Figure 4: India savory snacks market geography segmentation: % share, by value, 2016...........................................11
Figure 5: India savory snacks market share: % share, by value, 2016 .........................................................................12
Figure 6: India savory snacks market distribution: % share, by value, 2016.................................................................13
Figure 7: India savory snacks market value forecast: $ million, 201621 .....................................................................14
Figure 8: India savory snacks market volume forecast: million kilograms, 201621.....................................................15
Figure 9: Forces driving competition in the savory snacks market in India, 2016 .........................................................16
Figure 10: Drivers of buyer power in the savory snacks market in India, 2016 .............................................................17
Figure 11: Drivers of supplier power in the savory snacks market in India, 2016 .........................................................18
Figure 12: Factors influencing the likelihood of new entrants in the savory snacks market in India, 2016 ...................19
Figure 13: Factors influencing the threat of substitutes in the savory snacks market in India, 2016.............................20
Figure 14: Drivers of degree of rivalry in the savory snacks market in India, 2016 .......................................................21
Figure 15: ITC Limited: revenues & profitability.............................................................................................................26
Figure 16: ITC Limited: assets & liabilities.....................................................................................................................27
Figure 17: PepsiCo, Inc.: revenues & profitability..........................................................................................................30
Figure 18: PepsiCo, Inc.: assets & liabilities..................................................................................................................31

MARKET OVERVIEW
Market definition
The savory snacks market consists of the retail sale of ethnic/traditional snacks, meat snacks, nuts and seeds, popcorn,
potato chips, processed snacks and pretzels products. The market is valued according to retail selling price (RSP) and
includes any applicable taxes. All currency conversions have been made using constant annual average 2016 exchange
rates.
For the purpose of this report the global figure comprises of North America, South America, Europe, Asia-Pacific, Middle
East, and South Africa.
The Americas comprises Argentina, Brazil, Canada, Chile, Colombia, Mexico, Venezuela, Peru and the United States.
North America comprises Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Venezuela, Colombia and Peru.
Europe comprises Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Turkey,
Ukraine, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Japan, India, Indonesia, Malaysia, New Zealand, Pakistan, the Philippines,
Singapore, South Korea, Hong Kong, Vietnam, Kazakhstan, Taiwan, and Thailand.
Middle East comprises of Egypt, Israel, Saudi Arabia, and the United Arab Emirates.
Market analysis
The savory snacks market in India experienced very strong growth during the review period (2012-2016). However, the
growth of the market is expected to decelerate over the forecast period (2016-2021).
A large population added with rising snacking habit is driving the Indian savory snacks market. Local manufacturers such
as Haldirams Group and Balaji Foods recorded substantial growth. This is due to these manufacturers are also
expanding their reach in rural markets by offering small packaged snacks. It is expected that the continuous launch of
new products by manufacturers while maintaining stable prices will also contribute to the growth of the market over the
forecast period.
The Indian savory snacks market had total revenues of $5,472.2m in 2016, representing a compound annual growth rate
(CAGR) of 24.4% between 2012 and 2016. In comparison, the South Korean and Chinese markets grew with CAGRs of
1.9% and 8.4% respectively, over the same period, to reach respective values of $903.8m and $10,420.8m in 2016.
Market consumption volume increased with a CAGR of 23.3% between 2012 and 2016, to reach a total of 1,671.3 million
kilograms in 2016. The market's volume is expected to rise to 1,839.3 million kilograms by the end of 2021, representing
a CAGR of 1.9% for the 2016-2021 period.
Ethnic/traditional snacks sales accounted for the highest value in the Indian savory snacks market in 2016, with total
sales of $2,664.4m, equivalent to 48.7% of the market's overall value. In comparison, sales of potato chips reached a
value of $1,828.7m in 2016, equating to 33.4% of the total market value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 8.9% for the five-year period 2016
- 2021, which is expected to drive the market to a value of $8,373.9m by the end of 2021. Comparatively, the South
Korean and Chinese markets will grow with CAGRs of 1.9% and 9.6% respectively, over the same period, to reach
respective values of $993.7m and $16,469.1m in 2021.

MARKET DATA
Market value
The Indian savory snacks market grew by 10.9% in 2016 to reach a value of $5,472.2 million.
The compound annual growth rate of the market in the period 201216 was 24.4%.
Table 1: India savory snacks market value: $ million, 201216
Year $ million Rs. million million % Growth

2012 2,284.5 153,472.1 2,064.3
2013 2,947.8 198,033.6 2,663.6 29.0%
2014 3,810.2 255,967.0 3,442.9 29.3%
2015 4,935.7 331,577.7 4,459.9 29.5%
2016 5,472.2 367,619.5 4,944.6 10.9%
CAGR: 201216 24.4%
SOURCE: MARKETLINE MARKETLINE
Figure 1: India savory snacks market value: $ million, 201216

Market volume
The Indian savory snacks market grew by 27.8% in 2016 to reach a volume of 1,671.3 million kilograms.
The compound annual growth rate of the market in the period 201216 was 23.3%.
Table 2: India savory snacks market volume: million kilograms, 201216
Year million kilograms % Growth

2012 724.1
2013 874.2 20.7%
2014 1,067.1 22.1%
2015 1,307.5 22.5%
2016 1,671.3 27.8%
CAGR: 201216 23.3%
Figure 2: India savory snacks market volume: million kilograms, 201216

MARKET SEGMENTATION
Category segmentation
Ethnic/traditional snacks is the largest segment of the savory snacks market in India, accounting for 48.7% of the
market's total value.
The Potato chips segment accounts for a further 33.4% of the market.
Table 3: India savory snacks market category segmentation: $ million, 2016
Category 2016 %
Ethnic/Traditional Snacks 2,664.4 48.7%
Potato Chips 1,828.7 33.4%
Processed Snacks 636.8 11.6%
Nuts and Seeds 268.6 4.9%
Popcorn 73.6 1.3%
Total 5,472.1 99.9%
Figure 3: India savory snacks market category segmentation: % share, by value, 2016

Geography segmentation
India accounts for 18.7% of the Asia-Pacific savory snacks market value.
China accounts for a further 35.5% of the Asia-Pacific market.
Table 4: India savory snacks market geography segmentation: $ million, 2016
Geography 2016 %
China 10,420.8 35.5
Japan 8,495.7 29.0
India 5,472.2 18.7
South Korea 903.8 3.1
Singapore 100.0 0.3
Rest of Asia-Pacific 3,943.3 13.4
Total 29,335.8 100%
Figure 4: India savory snacks market geography segmentation: % share, by value, 2016

Market share
PepsiCo, Inc. is the leading player in the Indian savory snacks market, generating a 30.6% share of the market's value.
Haldiram`s Group accounts for a further 8.6% of the market.
Table 5: India savory snacks market share: % share, by value, 2016
Company % Share
PepsiCo, Inc. 30.6%
Haldiram`s Group 8.6%
Balaji Foods 5.4%
Itc Limited 4.6%
Other 50.8%
Total 100%
Figure 5: India savory snacks market share: % share, by value, 2016

Market distribution
Convenience Stores form the leading distribution channel in the Indian savory snacks market, accounting for a 61%
share of the total market's value.
Hypermarkets & Supermarkets accounts for a further 22.1% of the market.
Table 6: India savory snacks market distribution: % share, by value, 2016
Channel % Share
Convenience Stores 61.0%
Hypermarkets & Supermarkets 22.1%
Food & drinks specialists 11.9%
Dollar Stores, Variety Stores 0.8%
Other 4.2%
Total 100%
Figure 6: India savory snacks market distribution: % share, by value, 2016

MARKET OUTLOOK
Market value forecast
In 2021, the Indian savory snacks market is forecast to have a value of $8,373.9 million, an increase of 53% since 2016.
The compound annual growth rate of the market in the period 201621 is predicted to be 8.9%.
Table 7: India savory snacks market value forecast: $ million, 201621
Year $ million Rs. million million % Growth

2016 5,472.2 367,619.5 4,944.6 10.9%
2017 5,954.2 400,002.6 5,380.2 8.8%
2018 6,492.0 436,128.4 5,866.1 9.0%
2019 7,063.0 474,490.5 6,382.1 8.8%
2020 7,690.0 516,608.9 6,948.6 8.9%
2021 8,373.9 562,551.6 7,566.5 8.9%
CAGR: 201621 8.9%
Figure 7: India savory snacks market value forecast: $ million, 201621

Market volume forecast
In 2021, the Indian savory snacks market is forecast to have a volume of 1,839.3 million kilograms, an increase of 10.1%
since 2016.
The compound annual growth rate of the market in the period 201621 is predicted to be 1.9%.
Table 8: India savory snacks market volume forecast: million kilograms, 201621
Year million kilograms % Growth

2016 1,671.3 27.8%
2017 1,713.0 2.5%
2018 1,743.9 1.8%
2019 1,781.8 2.2%
2020 1,810.8 1.6%
2021 1,839.3 1.6%
CAGR: 201621 1.9%
Figure 8: India savory snacks market volume forecast: million kilograms, 201621

FIVE FORCES ANALYSIS
The savory snacks market will be analyzed taking savory snack producers as players. The key buyers will be taken as
retailers including supermarkets, hypermarkets, and other smaller retailers, and manufacturers of ingredients and
packaging as the key suppliers.
Summary
Figure 9: Forces driving competition in the savory snacks market in India, 2016
High operating and exit costs drive up rivalry in this market, although the larger players also tend to be fairly well
diversified, alleviating this pressure somewhat. Moreover, strong growth of the Indian savory snacks market during the
review period decreased rivalry to an extent.
Suppliers in the savory snacks market range from agricultural producers to machinery manufacturers, and vary in size
accordingly. Market players can integrate backwards, but farmers also integrate forwards relatively frequently, nullifying
the resultant downward pressure on supplier power.
For new entrants, the existence of large, well-established incumbents presents a significant barrier to entry, although it is
increasingly possible to enter the market on a smaller scale with a more 'artisan' product. The primary reasons for
consumers to choose a snack are enjoyment, indulgence, and convenience. Recent innovation in sweets and snacks
has focused on creating permissible indulgence. Producers are aiming to differentiate by using natural, healthy and
sustainably sourced ingredients.
Products in this market face a strong threat of substitution by other snack foods, confectionery and beverages, largely
because switching costs for buyers tend to be low, and retailers are heavily influenced by end consumer demand.
Despite the significant size of the retailers, buyer power is however limited, as strong branding influences consumer
purchase decisions and retailers must follow consumer demand while stocking their shelves.

Buyer power
Figure 10: Drivers of buyer power in the savory snacks market in India, 2016
In contrast to many countries, the major buyers in the Indian savory snacks market are not supermarket chains, but
convenience stores, which account for 61.0% of the total distribution. This creates a more fragmented marketplace,
wherein a large number of small buyers wield scant financial muscle, and can marshal only limited bargaining power
when it comes to negotiating with market players. Losing a buyer of this sort is likely to have little impact on a market
player's revenues. All of this undermines buyer power.
Hypermarkets and supermarkets still constitute a significant distribution channel for savory snacks. Chains such as these
usually occupy a fairly strong bargaining position due to their large financial reserves and broad distribution networks. By
comparison to independent retailers, losing the custom of a supermarket chain can have a very significant impact on the
fate of a market player. This increases buyer power.
Furthermore, savory snack products usually constitute just one of a wide range of items sold by most food retailers. This
reduces the importance of this product to buyers, increasing buyer power.
On the other hand, end consumers are highly influenced by branding in this market, and retailers are compelled to stock
the brands most popular with their customers. Strong branding therefore weakens buyer power in this market.
Overall, buyer power is assessed to be moderate.

Supplier power
Figure 11: Drivers of supplier power in the savory snacks market in India, 2016
Suppliers in the savory snacks market include agricultural commodity traders, agricultural producers, and manufacturers
of ingredients, packaging, and factory automation equipment.
Market players generally buy perishable raw materials such as potatoes direct from the growers, which are often
relatively small businesses that rely on market players for a large proportion of their revenues. This results in weaker
supplier power. However, vegetable oils and grains such as maize are more commonly provided by commodity traders
and these are often large multinationals, such as Bunge, and wield substantial negotiating power, resulting in a
corresponding increase in supplier power.
While market players rarely integrate backwards into farming, some have already become active in commodity trading; a
trend that weakens supplier power. Similarly, many market players manufacture ingredients such as flavorings.
Conversely, some farmers integrate forward, particularly with artisanal products.
While consumer preferences must be catered for, players can mitigate the impact of changing raw material prices by
diversifying their product mix - for example, producing both potato chips and corn chips.
Leading players must maintain product quality if they are to maintain their brand equity in the long term. Moreover, their
need to source raw materials of appropriate quality tend to strengthen those suppliers who are able to provide the
necessary products. However, lack of differentiation in commodity inputs weaken supplier power.
Overall, supplier power is assessed to be moderate.

New entrants
Figure 12: Factors influencing the likelihood of new entrants in the savory snacks market in
India, 2016
The savory snacks market is dominated by large, often international players. Such companies have developed extensive
product portfolios, and back brands with large marketing and advertising budgets. A new entrant is likely to find it difficult
to compete with established players effectively, although some smaller players have succeeded by emphasizing
artisanal production techniques or unusual ingredients. Alternative production techniques, such as popping or baking are
increasingly being explored by manufacturers to tap growing consumer demand for such products. With growing
concerns over obesity, portion control is gaining further traction and driving demand for smaller, more convenient
packaging.
Gaining access to distribution channels may also be difficult, as retail space is limited and new entrants must persuade
stores to replace established brands with unproven new products. Furthermore, if a new entrant is deemed to be
encroaching on an established player's market share, there is a high likelihood that established players will retaliate
through price reductions and loss-leader promotions.
Due to health concerns, there are various regulations in place. Regulation of the food market in India is the responsibility
of the Food Safety and Standards Authority of India (FSSAI), and is concerned with ensuring that products should be
safe to eat, produced under sanitary conditions, contain no harmful substances and to be truthfully labelled. The
necessity to comply with these makes it harder for newcomers to enter the market. There are also restrictions in
advertising of snacks, especially if advertising is directed towards children.
The Indian savory snacks market has seen a strong growth during the review period, which will work to encourage
prospective new entrants. Overall, the likelihood of new entrants is moderate.

Threat of substitutes
Figure 13: Factors influencing the threat of substitutes in the savory snacks market in India,
2016
Retailers must cater to consumer demand, and so savory snacks are threatened by many substitutes, most notably other
snack items such as confectionery, fruit, or beverages. These products retail for similar prices, and so retailers are able
to switch their focus toward them relatively cheaply: unless they are tied into a contract with the market player, a retailer
may for example decide to stock more confectionery, and fewer potato chips.
A growing awareness of the health issues associated with snacks containing high quantities of sugar, salt or fat works to
push people away from many traditional snacks and toward healthier substitutes such as fruit.
Substitutes might also present further benefits over savory snacks; candy bars for instance occupy significantly less shelf
space than potato chips, allowing retailers to display a larger range and higher value of stock across the same shelf-
space. This is of course not always the case: fruits, for example, often require chilled display cabinets, which increases
storage costs.
Overall, there is a strong threat from substitutes.

Degree of rivalry
Figure 14: Drivers of degree of rivalry in the savory snacks market in India, 2016
Leading competitors in this market generally tend to be large, often multi-national, diversified corporations, such as
PepsiCo and ITC Limited. These large companies dominate, with PepsiCo alone holding 30.6% share in 2016. Artisanal
companies do exist and often operate in a market niche, offering products such as hand-cooked root vegetable chips,
although it should be noted these companies are often subject to acquisition by their larger competitors, if they
successfully establish themselves. This environment tends to foster an increased sense of rivalry.
Moreover, market players' similarity, the relative ease with which they can increase output, high operating and exit costs
due to the specialized nature of manufacturing equipment, and low switching costs for buyers, all exacerbate rivalry
further.
On the other hand, rivalry is toughened by the diversified nature of the larger businesses in the savory snacks market.
These companies often deal in substitutes such as confectionery, and operate in a number of different geographies. For
example, PepsiCo sells a variety of food and beverage products and sells its products all around the world. It should be
noted that the benefits of this diversification are not often shared by the market's smaller players.
Very strong market growth tends to ease the competition to some extent. Overall, rivalry in this market is assessed as
moderate.

LEADING COMPANIES
Balaji Wafers Private Limited
Table 9: Balaji Wafers Private Limited: key facts
Vajdi (Vad), Kalawad Road, Ta. Lodhika, Dist. Rajkot, Gujarat 360005,
Head office:
IND
Telephone: 91 281 278 3755
Website: www.balajiwafers.com
SOURCE: COMPANY WEBSITE MARKETLINE
Balaji Wafers and Namkeen group manufactures and distributes potato chips, namkeen food products and other grain-
based bagged snacks in various flavors. The company has manufacturing capacity of 100,000 kg of potato wafers, along
with 500,000 kg of savories per day. It employs more than 1,800 people in their Rajkot and Valsad manufacturing
facilities. It also provides various other snacks through a network of dealers. The company was established in 1974 and
operates as a family owned business.
Key Metrics
As a privately held company, Balaji Wafers Private Limited is not obliged to publish its financials.

Haldiram Foods International Pvt Ltd
Table 10: Haldiram Foods International Pvt Ltd: key facts
Haldiram House', Plot No. 145/146, Old Pardi Naka, Bhandara Road,
Head office:
Nagpur, Maharashtra, IND
Telephone: 91 902 199 4899
Fax: 91 712 2681197
Website: www.haldirams.com
Haldiram Foods International Pvt. Ltd. (Haldiram Foods) is a manufacturer and retailer of food products. The company
offers namkeens, traditional sweets, canned sweets, banana chips, curries, snacks, parathas, thali and drinks. Its
products portfolio includes gulab jamun, rasgulla, rasmalai, halwa, laddu, dum aloo, dal tadka, mutter paneer, jeera rice,
plain rice, samosa, aloo bonda, kachori, palak paneer, orange squash and sharbat, among others. Haldiram Foods
markets its products under the brands of Haldiram's. The company sells its products through a network of retail stores
and showrooms located across India. It operates through its facilities located in Nagpur, Mumbai, Bangalore and
Chennai, India. The company also has operations in the US, Australia, Canada, the UK, Germany, Spain, South Africa,
Algeria, the UAE, China, and others. Haldiram Foods is headquartered in Nagpur, Maharashtra, India.
Key Metrics
As a privately held company, Haldiram Foods International Pvt Ltd is not obliged to publish its financials.

ITC Limited
Table 11: ITC Limited: key facts
Head office: Virginia House, 37 Jawaharlal Nehru Road, Kolkata, West Bengal, IND
Telephone: 91 332 288 9371
Fax: 91 332 288 0655
Website: www.itcportal.com
Financial year-end: March
Ticker: 500875, ITC
Stock exchange: BSE, NSE
ITC is an India-based diversified conglomerate with interests in FMCG, hotels, paperboards and specialty papers,
packaging, agri-business, and information technology industries. The group has 25 subsidiaries, including 10
subsidiaries outside India.
The group operates through five business segments: FMCG; Agri-Business; Paperboards, Paper and Packaging; Hotels;
and Others.
The group's FMCG portfolio comprises foods, cigarettes, personal care products, education and stationery products,
lifestyle retailing, incense sticks (agarbattis) and safety matches.
ITC's foods business spans the following categories: staples, snacks and meals; dairy and beverages; and confections.
Some of the major brands of the group in the foods business include Aashirvaad, Sunfeast, Yippee!, Bingo!, Kitchens of
India, B Natural, mint-o, Candyman, Sunbean, Fabelle and GumOn.
The cigarettes business offers various tobacco products as well as roll-your-own solutions under brands such as
Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake,
Silk Cut, Duke and Royal. The group caters to the Indian as well as international tobacco markets through its production
facilities in Bengaluru, Munger, Saharanpur, Kolkata and Pune. ITC also offers handrolled cigars under the Armenteros
brand name.
In the personal care category, the group offers fragrances, shampoos, after shave lotions, bathing bars, shower gels and
medicated powders, among others. ITC markets these products under the brand names Essenza Di Wills, Fiama, Vivel,
Engage, Superia, Shower to Shower and Savlon.
The group offers education and stationery products such as notebooks, writing instruments (ball, gel and roller pens and
wood-cased and mechanical pencils), mathematical instruments (geometry boxes and compass kits), scholastic products
(erasers, sharpeners and rulers) and art stationery products (wax crayons, plastic crayons, sketch pens and oil pastels)
through the Classmate brand; and business papers and pens under the Paperkraft brand name.
ITC's lifestyle retailing business encompasses its Wills Lifestyle and John Players retail store chains. At the end of
FY2016, the group operated 100 exclusive Wills Lifestyle stores across 50 cities in India and more than 350 outlets in
departmental stores and multi-brand outlets. ITC also operates over 400 flagship John Players stores and more than
1,200 outlets in multi-brand outlets and departmental stores. These stores offer clothes ranging from casual wear to
formal wear. While the Wills Lifestyle brand targets the premium branded apparel market, the John Players brand caters
to the youth apparel market.
ITC also offers a range of safety matches under brands such as Aim and i Kno. The group manufactures and markets
incense sticks under the brand name Mangaldeep.

The Agri-Business segment is engaged in the purchase and export of agri commodities such as feed ingredients
(including soyameal) and food grains (including wheat, rice, pulses, maize and barley). The group is also involved in the
purchase and export of marine products like shrimps and prawns, and processed fruits (fruit purees/concentrates, frozen
fruits, and organic fruit products). Besides, ITC trades in coffee and sources leaf tobacco for cigarette business.
The group operates the e-Choupal model to network directly with rural farmers through the internet for procurement of
agricultural and aquaculture products. The initiative provides reliable market information, global price trends, and
information about latest farming techniques and local weather to the local community. It eliminates value chain
intermediaries thereby reducing the transaction time and shortening the transaction process between the ITC and the
farmers. This initiative currently comprises approximately 6,100 installations covering nearly 35,000 villages and serving
over four million farmers. Currently, the 'e-Choupal' website provides information to farmers across the 10 States of
Madhya Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra, Andhra Pradesh
and Tamil Nadu.
The Paperboard, Paper and Packaging segment offers folding box boards, solid bleached boards, poly coated boards,
specialty papers, recycled boards and fine papers, among others. The group offers its products in this segment under
various brands including Indobev, Cyber XLPac, Eco Blanca, Eco Natura, Alfa Zap, Hi Brite and Alfa Plus, among many
others. The paper and paperboards business caters to a wide range of packaging, graphic, communication, writing,
printing and specialty paper requirements through its four manufacturing units, eight sales offices and a network of over
60 dealers in India, along with an international trade network of distributors/agents and six finishing operations. ITC's
packaging business supplies packaging to its various FMCG businesses.
The hotels segment operates over 100 hotels across 70 destinations in India. Its properties are classified under four
distinct brands: ITC Hotels - Luxury Collection, super deluxe and premium hotels located at strategic business and
leisure locations; Fortune Hotels, a chain of budget hotels; WelcomHeritage, a chain of palaces, forts, havelis and
resorts; and WelcomHotels, a five-star hotel for business and leisure travelers. The group also operates branded cuisine
chains such as WelcomCuisine, Bukhara, Peshawri, Dakshin, Dum Pukht, West View and Pan Asian, which offer Indian
cuisines from different regions. The others segment includes IT services, manufacture of cigarette filter rods, golf resorts
operations and real estate operations of ITC, among others. The group provides IT services through ITC Infotech, which
caters to industry verticals such as banking, financial services and insurance (BFSI), airline, consumer packaged goods
(CPG), retail, manufacturing, Hi-Tech and hospitality.
Geographically, the company classifies its operations into two segments, namely India and Outside India.
Key Metrics
The company recorded revenues of $5,869 million in the fiscal year ending March 2016, an increase of 1.5% compared
to fiscal 2015. Its net income was $1,475 million in fiscal 2016, compared to a net income of $1,438 million in the
preceding year.
Table 12: ITC Limited: key financials ($)
$ million 2012 2013 2014 2015 2016

Revenues 3,948.4 4,707.9 5,257.1 5,780.8 5,868.9
Net income (loss) 931.6 1,132.5 1,323.5 1,438.4 1,475.4
Total assets 4,480.8 5,262.5 6,085.8 6,846.0 7,630.9
Total liabilities 1,584.3 1,815.4 2,031.4 2,122.0 2,575.1
SOURCE: COMPANY FILINGS MARKETLINE

Table 13: ITC Limited: key financials (Rs.)
Rs. million 2012 2013 2014 2015 2016

Revenues 265,254.3 316,275.4 353,170.8 388,348.1 394,270.2
Net income (loss) 62,581.4 76,080.7 88,913.8 96,631.7 99,116.1
Total assets 301,015.7 353,533.8 408,839.3 459,907.9 512,637.8
Table 14: ITC Limited: key financial ratios
Ratio 2012 2013 2014 2015 2016

Profit margin 23.6% 24.1% 25.2% 24.9% 25.1%
Revenue growth 17.5% 19.2% 11.7% 10.0% 1.5%
Asset growth 14.0% 17.4% 15.6% 12.5% 11.5%
Liabilities growth 8.9% 14.6% 11.9% 4.5% 21.4%
Debt/asset ratio 35.4% 34.5% 33.4% 31.0% 33.7%
Return on assets 22.2% 23.2% 23.3% 22.2% 20.4%
Figure 15: ITC Limited: revenues & profitability

Figure 16: ITC Limited: assets & liabilities

PepsiCo, Inc.
Table 15: PepsiCo, Inc.: key facts
Head office: 700 Anderson Hill Road, Purchase, New York 10577, USA
Telephone: 1 914 253 2000
Fax: 1 914 253 2070
Website: www.pepsico.com
Financial year-end: December
Ticker: PEP
Stock exchange: NYSE
PepsiCo, Inc. (PepsiCo) is a food and beverage manufacturing company based in the US. The company produces,
markets and sells salty, sweet and grain based snacks, food products, carbonated and non-carbonated beverages
through independent operations and contract manufacturers. It has operations in over 200 countries and territories.
The company classifies its business operations into six reportable segments: North America Beverages (NAB), Frito-Lay
North America (FLNA), Europe Sub-Saharan Africa (ESSA), Latin America, Asia, Middle East and North Africa (AMENA)
and Quaker Foods North America (QFNA).
Through the NAB segment, PepsiCo manufactures, markets, sells and distributes fountain syrups, beverage
concentrates, and finished goods under Gatorade, Pepsi, Mountain Dew, Aquafina, Diet Pepsi, Tropicana Pure
Premium, Diet Mountain Dew, Sierra Mist and Mug brands. The company, through its joint ventures with Unilever and
Starbucks, produces, markets and sells ready-to-drink tea and coffee products. It also manufactures and distributes
some brands including Dr Pepper, Crush and Schweppes licensed from Dr Pepper Snapple Group, Inc. The segment
owns 70 bottling and manufacturing plants and 465 other facilities. In FY2016, the NAB segment reported revenue of
US$21,312 million, which accounted for 33.9% of the companys total revenue, excluding internal revenue/eliminations.
The companys FLNA segment produces, markets, distributes and retails branded snack foods. FLNAs product offerings
include Lays potato chips, Doritos tortilla chips, Cheetos cheese-flavored snacks, Tostitos tortilla chips, branded dips,
Ruffles potato chips, Fritos corn chips and Santitas tortilla chip. It sells its products through independent distributors and
retailers. PepsiCo also markets, sells and distributes Sabra refrigerated dips and spreads. The FLNA segment owns or
leases 35 food manufacturing and processing plants and approximately 1,675 warehouses, distribution centers and
offices. It operates research facility in Texas, the US. In FY2016, the FLNA segment reported revenues of US$15,549
million, which accounted for 24.7% of the companys total revenue, excluding internal revenue/eliminations.
Under the ESSA segment, PepsiCo produces, markets and sells snack foods under Lays, Doritos, Walkers, Cheetos,
Quarker and Ruffles brands. It also offers beverage concentrates, fountain syrups and finished goods under various
brands comprising Pepsi, Pepsi Max, 7UP, Diet Pepsi, Mirinda, and Tropicana. The company sells its products to
authorized bottlers, distributors and retailers. PepsiCo produces and distributes dairy products including Agusha, Chudo
and Domik v Derevne. The segment owns 100 bottling and manufacturing plants and 365 other facilities. In FY2016, the
ESSA segment reported revenue of US$10,216 million, which accounted for 16.3% of the companys total revenue.

Through the Latin America segment, the company manufactures, markets, sells and distributes snack foods. It markets
these products under various brands including Doritos, Marias Gamesa, Cheetos, Ruffles, Saladitas, Emperador, Lays,
Sabritas, Rosquinhas Mabel and Tostitos. The company manufactures, markets and distributes beverage concentrates,
fountain syrups and finished goods under various brands including Pepsi, Gatorade, 7UP, Diet 7UP, Mirinda, Manzanita
Sol and Diet Pepsi. It offers ready-to-drink tea under Lipton brand through its joint venture with Unilever. The segment
owns and 55 plants and 575 other facilities. In FY2016, the Latin America segment reported revenue of US$6,820
million, which accounted for 10.9% of the companys total revenue.
Under the AMENA segment, the company manufactures, markets, sells and distributes a range of snack foods brands
such as Lay's, Chipsy, Kurkure, Doritos, Cheetos and Crunchy. It offers these products through consolidated businesses
and non-controlled affiliates. The AMENA is also involved in manufacturing, marketing, selling and distribution of many
Quaker-brand cereals and snacks, beverage concentrates, fountain syrups and finished goods, under various beverage
brands including Pepsi, Mirinda, 7-Up, Mountain Dew, Aquafina and Tropicana. It offers these products to authorized
bottlers, independent distributors and retailers. AMENA operates its own 50 bottling and manufacturing plants and 360
other facilities. In FY2016, the AMENA segment reported revenue of US$6,338 million, which accounted for 10.1% of the
companys total revenue.
Under the QFNA segment, the company manufactures, markets, sells and distributes cereals, rice snacks, pasta, dairy
and other branded products. QFNAs product portfolio includes Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker
Chewy granola bars, Quaker grits, Capn Crunch cereal, Life cereal, Rice-A-Roni side dishes, Quaker rice cakes, Quaker
oat squares and Quaker natural granola. It offers products to independent distributors and retailers. This segment owns
a snack manufacturing plant in Iowa, the US. It also owns and leases five manufacturing facilities and three other
facilities. In FY2016, the QFNA segment reported revenues of US$2,564 million, which accounted for 4.1% of the
companys total revenue, excluding internal revenue/eliminations.
The companys major customers comprise wholesale distributors, grocery stores, drug stores, convenience stores, mass
merchandisers, membership stores, authorized independent bottlers and foodservice distributors, including hotels and
restaurants.
PepsiCo classifies its geographic operations into seven regions: the US, Russia, Mexico, Canada, the UK, Brazil and all
other countries. In FY2016, the US region contributed 58.5% of the companys total revenues, followed by All other
countries (22.7%), Mexico (5.5%), Canada (4.3%), Russia (4.2%), the UK (2.0%) and Brazil (2.1%).
Key Metrics
The company recorded revenues of $62,799 million in the fiscal year ending December 2016, a decrease of .4%
compared to fiscal 2015. Its net income was $6,329 million in fiscal 2016, compared to a net income of $5,452 million in
the preceding year.
Table 16: PepsiCo, Inc.: key financials ($)
million 2012 2013 2014 2015 2016

Revenues 65,492.0 66,415.0 66,683.0 63,056.0 62,799.0
Net income (loss) 6,178.0 6,740.0 6,513.0 5,452.0 6,329.0
Total assets 74,638.0 77,478.0 70,509.0 69,667.0 74,129.0
Employees 278,000 274,000 271,000 263,000 264,000

Table 17: PepsiCo, Inc.: key financial ratios
Ratio 2012 2013 2014 2015 2016

Profit margin 9.4% 10.1% 9.8% 8.6% 10.1%
Revenue growth (1.5%) 1.4% 0.4% (5.4%) (0.4%)
Asset growth 2.4% 3.8% (9.0%) (1.2%) 6.4%
Liabilities growth 0.7% 1.6% (0.2%) 8.8% 9.2%
Debt/asset ratio 70.1% 68.7% 75.3% 82.9% 85.0%
Return on assets 8.4% 8.9% 8.8% 7.8% 8.8%
Revenue per employee $235,583 $242,391 $246,063 $239,757 $237,875
Profit per employee $22,223 $24,599 $24,033 $20,730 $23,973
Figure 17: PepsiCo, Inc.: revenues & profitability

Figure 18: PepsiCo, Inc.: assets & liabilities

MACROECONOMIC INDICATORS
Country data
Table 18: India size of population (million), 201216
Year Population (million) % Growth

2012 1,208.1 1.3%
2013 1,223.6 1.3%
2014 1,238.9 1.3%
2015 1,254.0 1.2%
2016 1,269.0 1.2%
Table 19: India gdp (constant 2005 prices, $ billion), 201216
Year Constant 2005 Prices, $ billion % Growth

2012 1,389.0 4.7%
2013 1,485.7 7.0%
2014 1,595.4 7.4%
2015 1,716.1 7.6%
2016 1,847.6 7.7%
Table 20: India gdp (current prices, $ billion), 201216
Year Current Prices, $ billion % Growth

2012 1,858.7 (1.1%)
2013 1,876.8 1.0%
2014 2,045.6 9.0%
2015 2,337.2 14.3%
2016 2,671.5 14.3%

Table 21: India inflation, 201216
Year Inflation Rate (%)

2012 10.2%
2013 9.5%
2014 7.7%
2015 7.2%
2016 6.7%
Table 22: India consumer price index (absolute), 201216
Year Consumer Price Index (2005 = 100)

2012 182.8
2013 200.1
2014 215.6
2015 231.0
2016 246.5
Table 23: India exchange rate, 201216
Year Exchange rate ($/Rs.) Exchange rate (/Rs.)

2012 53.6119 68.6802
2013 58.4859 77.7676
2014 60.9620 80.8938
2015 64.1233 71.1453
2016 67.1794 74.3472

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

Reference Code: 0102-0199

Publication Date: July 2017

India - Savory Snacks 0102 - 0199 - 2016

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

Market volume forecast

India - Savory Snacks 0102 - 0199 - 2016

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Threat of substitutes .................................................................................................................................................. 20

Degree of rivalry ........................................................................................................................................................ 21

India - Savory Snacks 0102 - 0199 - 2016

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

Haldiram Foods International Pvt Ltd ........................................................................................................................23

ITC Limited ................................................................................................................................................................ 24

PepsiCo, Inc. ............................................................................................................................................................. 28

Country data .............................................................................................................................................................. 32

About MarketLine ...................................................................................................................................................... 35

India - Savory Snacks 0102 - 0199 - 2016

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Table 2: India savory snacks market volume: million kilograms, 201216......................................................................9

Table 9: Balaji Wafers Private Limited: key facts ..........................................................................................................22

Table 11: ITC Limited: key facts .................................................................................................................................... 24

Table 12: ITC Limited: key financials ($) .......................................................................................................................25

Table 13: ITC Limited: key financials (Rs.)....................................................................................................................26

Table 14: ITC Limited: key financial ratios.....................................................................................................................26

Table 15: PepsiCo, Inc.: key facts ................................................................................................................................. 28

Table 16: PepsiCo, Inc.: key financials ($) ....................................................................................................................29

Table 17: PepsiCo, Inc.: key financial ratios..................................................................................................................30

Table 18: India size of population (million), 201216 ....................................................................................................32

Table 20: India gdp (current prices, $ billion), 201216 ................................................................................................32

Table 21: India inflation, 201216 ................................................................................................................................. 33

Table 22: India consumer price index (absolute), 201216...........................................................................................33

Table 23: India exchange rate, 201216 .......................................................................................................................33

India - Savory Snacks 0102 - 0199 - 2016

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Figure 2: India savory snacks market volume: million kilograms, 201216.....................................................................9

Figure 6: India savory snacks market distribution: % share, by value, 2016.................................................................13

Figure 15: ITC Limited: revenues & profitability.............................................................................................................26

Figure 16: ITC Limited: assets & liabilities.....................................................................................................................27

Figure 17: PepsiCo, Inc.: revenues & profitability..........................................................................................................30

Figure 18: PepsiCo, Inc.: assets & liabilities..................................................................................................................31