PARTICIPATE IN ONE OF THE

BIGGEST CONSUMPTION MARKET

OF THE WORLD
India: One of the Fastest Growing Large Economy

India took 60 years after independence to enter prestigious Trillion Dollar Club. But it took ~ 7 years to double the size.
Growing GDP with Young Population makes Consumption a structural story for sustainable period.

GDP (USD bn) 7 Years for Next

2500 Trillion

2000

1500
60 Years after independence for First Trillion Dollar GDP

1000

500

2016
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Source: External Research Report. Data as on 31st Dec. 2017. Past Performance may or may not sustain in future.

2
India Growth Story

• India with its 1.25 billion population enjoys a demographic advantage with 50% of its
population in the working age.

• India‟s per capita GDP has seen significant growth in last decade.
• Government‟s focus to improve rural income through rural focussed initiatives.

• The proportion of nuclear households, which has been on the rise during the past
two decades, is projected to increase to 74% by 2025.
• Decision Makers in such household are Younger and spends enthusiastically.

• Digital Influence on broader consumer spending is significant and growing rapidly.

Source: IMF, Citi Research, Data as on 2017

3
Transition of Consumption Pattern

1980-90 2000-10 2018

Changing Needs and Wants

1980-90 2000-10 2018

Nuclear Families can further fuel the consumption demand
The stocks/sectors mentioned in this presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e. Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
4
Aspects of India‟s Changing Shape of Consumption

• In terms of consumption & spending, the

two top consumer categories „Elite and Rising Affluence (%)
Affluent‟ may become the largest
combined segment by 2025, accounting
100
12 20
for 40% as compared to 27% in 2016.
80 15
20
• The share of next billion and strugglers
may come down from 49% to 36% by 60 24
2025 25
40
38
20 30
11 6
0
2016 2025E
Annual gross household income (thousand dollars)
Elite: >30.8 Next Billion: 2.3-7.7
Strugglers Next Billion Aspires
Affluent: 15.4-30.8 Strugglers:<2.3
Aspires: 7.7- 15.4
Affluent Elite

BCG CCI Consumption survey, BCG analysis, March 20, 2017. E estimate
5
India: One of The Largest Home of Millennials
• In India, the population of individuals born between 1980 and 2000 is 450 Mn, which is one of the
highest in the world.
• Millennial have grown up in an urbanized India with a healthy economic environment.
• This population tends to spends time reading, rating and writing reviews as well as seeking peer
feedback before choosing products
• They seek novelty, like experimentation and are open to trying on new brands that offer unique
experiences. They also are digitally savvy.

India has the largest base

of Millennials

Millennials forms 35% of India‟s population

Source: Elara Capital Report, March 2018

6
Indian‟s Normal Day

Page Bajaj Auto Zee Havells Alkem

Colgate Britannia Industries Maruti Suzuki ITC Bharti Airtel Entertainment India Laboratories

.
The stocks/sectors mentioned in this presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
7
Needs & Desires
Roti Kapda Makaan

Eating Better
Mobility & Connectivity

Needs Are
Changing
Looking Better Faster Leisure

Better Home Well-Being (Health &

Education)

The stocks/sectors mentioned in this presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
8
Opportunities
Discretionary Non - Discretionary

Healthcare
Media
Consumer Durable
Pharma

Auto
Bharat Consumption
Power

Paint
Consumer Non
Durable
Telecom
Hotel, Resorts Textile

The stocks/sectors mentioned in this presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. 9
Consumer Durable: Structural Demand Drivers Intact

Demand Drivers
• Shift towards energy efficiency
• “Housing for all” Programs
• Change in consumer perception from household utility to home decor
• Favorable demographic change and expanding participation of women in job market.

Consumer Durable

Consumer Electronics Consumer Appliances

Television Laptop Audio System Air conditioner Washing Machine Refrigerator Other home appliances

Key Product Growth

• TV segment is expected to grow at a CAGR of 14.7% over FY 16-21
• Penetration of electric fans in rural areas is expected to reach 76-78 per cent in 2019-20 from 65 per cent in 2017
• The estimated market size in value for refrigerators is US$ 3.02 billion in 2017 and is expected to reach US$ 5.34 billion by 2022.

.
Source: ibef.org, Makeinindia, Edeiweiss Research FDI : Foreign Direct Investment

10
 Consumer Durable: Structural Demand Drivers Intact
• Consumer Electronics market is expected to record an 18% CAGR
over FY17-21F
• Appliances market is expected to record a 12% CAGR over FY17-21
• Indian consumer durable penetration is significantly lower than
global standards almost across all product categories Crompton Greaves Consumer Electricals
• Combination of low penetration and income growth may drive Havells India Ltd
sustainable growth across categories. Titan Company Ltd

Report as on March 2018

Source: ibef.org, Makeinindia, Edeiweiss Research FDI : Foreign Direct Investment. Nomura Global Market Research 2018. F . Forecast
The stocks/sectors mentioned in this Presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the scheme is
subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. 11
Auto

• India is world‟s fourth largest automobile industry and 7th largest commercial
vehicle manufacturer

• Sales of cars, utility vehicles and vans grew at 8.85% during year 2017

• As of FY 15, around 31% of global sale of small cars are manufactured in India

• India, emerged as a world leader in manufacturing of

(i) Diesel and Petrol Engine of small capacity
Bajaj Auto Ltd
(ii) Commuter 2 and 3 wheeler
(iii) Low powered tractors Hero Motor Corp Ltd

(iv) Auto components Mahindra & Mahindra Ltd

Maruti Suzuki India Ltd
• Automotive sector is likely to contribute in excess of 12% of India‟s GDP as per
Automotive Mission Plan (AMP) 2016-26.

Source: Auto Motive Mission Plan 2016-26, IDFC Securities

The stocks/sectors mentioned in this Presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
12
Entertainment
Media & Entertainment
• Advertising industry is expected to grow at 14% in value term in CY18.
• Digital Media is expected to grow at CAGR of 23.5% through CY17- CY20.
• Radio ad revenue to grow at CAGR of 9.4% during CY17-CY20.
• India is one of the highest spending and fastest growing advertising market
globally. SUN TV Network Ltd
Hotel & Resorts ZEE Entertainment Ltd

• In the last 3 years, fortunes for the hotel industry have changed with improving
demand with occupancy rates are around decadal high at 65%.
• It is due to supply growth at 3% against demand growth at 7-8%.
• Empirical evidence indicates that occupancy growth precedes ARR(Average Room
Rates) growth by a few years. May allow investors to ride the ARR-led growth as INDIAN Hotel Co. Ltd.
demand growth surpasses supply flow decisively.

Source: Kaviraj Securities, KPMG-FICCI Media and Entertainment industry report 2016, ICICI Securities
The stocks/sectors mentioned in this Presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
13
 Aviation: Flying High
Aviation Sector
• India is the world‟s third-largest and fastest growing air travel market.
• Passenger growth has been in double digits over the last 43 months.
• Domestic passenger volumes grew 24.4% YoY in Feb 2018.
• Domestic Industry load factor stood at all time high of 91% in Feb 2018.

Key factors behind growth in the Indian aviation market are

• Demographic distribution.
• Burgeoning Middle Class. Total PAX handled by Airports
FY18E Capacity
• Economic Growth. FY 13 FY 18 CAGR(13-18) Utilization(%)
Delhi 34.4 64.9 14% 105
• Government‟s initiative on regional connectivity under Mumbai 30.2 48.3 10% 121
UDAN(Ude Desh Ka Aam Nagrik). Airport Authority of India Banglore 12 26.4 17% 132
will connect 22 airports under first phase. Chennai 12.8 20.1 10% 101
Kolkata 10.2 19.6 14% 98
• Passenger growth higher is tier-II cities. Hyderabad 8.3 17.9 17% 149
Cochin 4.9 10.1 16% 112
Ahmedabad 4.2 9.1 17% 76
Pune 3.3 8.1 20% 147
Goa 3.5 7.4 16% 149

Source: External Reports,Motilal Oswal Report on Aviaton March 2018, DGCA. JM Financial
The stocks/sectors mentioned in this Presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the scheme is
subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. 14
FMCG: Out of the Woods

• India has been one of the fastest growing FMCG • The % of households that purchased 16-20 FMCG
markets worldwide. It recorded growth rate of categories in a year increased to 47% in CY17 from 43%
18.8% between FY 05-13. in CY15
• The market for beauty and personal care, • Similarly, average FMCG spend per household has
packaged food and tobacco in India recorded a risen, from Rs. 6,043 in CY15 to Rs. 7,108 in CY17
CAGR of 13.2% compared with an average growth (CAGR of 8%).
of 8.9% during 2003-10.
2% 2% 2%
13% 12% 15%

43% 46% 47%

37% 35% 32%

5% 5% 4%

FMCG market in India (INR mn)

Source: Kantar world panel india, World Bank, AC Nielsen,. Nomura

15
FMCG: Out of the woods

Britannia Industries Ltd

Colgate Palmolive Ltd
Dabur India Ltd
Emami Ltd

Source: BCG Report. December 2015

The stocks/sectors mentioned in this Presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. 16
Non-Discretionary Spend

Pharma & Healthcare

Indian Healthcare Sector Growth (US$bn)
• Healthcare has become one of largest sectors both in terms of
2020F 280
revenue & employment. 2017 160
• India‟s competitive advantage lies in its large pool of well-trained 2016 110
2015 104
medical professionals and also its lower cost compared to counter 2014 83.1
parts in Asia and World. 2012 73
2011 68
• The total contribution from healthcare to GDP is ~4% which is 2010 60
among the lowest in the World. 2009 52
2008 45

Power Rising Trend of Power Consumption (kwh)

• India‟s per capita power consumption was 1075 kwh in FY 16 1200 1075
according to CEA. This is 1/4 of china‟s consumption at 4000 kwh. 1000 884
957
779
• India‟s energy deficit has declined to under 1% in FY17 and 800 717
631
touched a low of 0.35% in March 17 versus highs of 11% in FY09. 600
559 592
While reported power deficits in India have declined steeply, 40 349 364
400
million households still do not have access to electricity.
200
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Source: World Bank, CITI Research ibef.org. E : Estimate CEA :Central Electricity Authority of India, KWH : Kilowalt hour. Frost & Sullivan, LSI Financial Services, Delloite, Techsri Research
The stocks/sectors mentioned in this Presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. 17
 Aim to Benefit from Rising Consumption of Bharat,
Invest In

ICICI Prudential Bharat Consumption Fund – Series 2

(A Close Ended Equity Scheme following Consumption Theme)

NFO Period : April 12th , 2018 to April 26th , 2018

Fund Manager: Mrinal Singh*

*Priyanka Khandelwal for investment in ADR/GDR/ Foreign securities

18
ICICI Prudential Bharat Consumption Fund - Series 2

Sectors that can benefit from consumption theme like Consumer Non-Durable,
Consumer Durable, Auto, Healthcare Services, etc. that are likely to play out well
with ~3.5 years investment horizon

Helps in bottom-up stock selection with ~3.5 years view

Ability to reduce net equity risk at market peaks

Aims to limit downside of the portfolio by using hedging strategies

The stocks/sectors mentioned in this presentation is only for illustration purpose only. The stocks mentioned herein are a part of the scheme benchmark i.e Nifty India Consumption Index. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s).The portfolio of the
scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
19
Riskometer & Disclaimer

ICICI Prudential Bharat Consumption Fund - Series 2 is suitable for investors who are
seeking:*
 Long term wealth creation
 A close ended equity scheme that aims to provide capital appreciation by investing in a
well-diversified portfolio of stocks that could benefit from growth in consumption and
related activities.

*Investors should consult their financial advisors if in doubt about whether the product is
suitable for them.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: All figures and data given in the document are dated unless stated otherwise. In the preparation of the material contained in this document, the AMC has used information that is
publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the AMC and/or its
affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC
however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included statements / opinions / recommendations in this document, which contain
words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ
materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks,
general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation,
deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc.
The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not
limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully
responsible/are liable for any decision taken on this material.
The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these
sector(s)/stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of
the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of
ICICI Prudential Mutual Fund. The information contained herein should not be construed as a forecast or promise nor should it be considered as an investment advice.

21
Thank You