market research report : vending machine market in india 2012

7/30/2019 Market Research Report : Vending Machine Market in India 2012

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Vending Machine

Market

– India

November 2012



2VENDING MACHINE MARKET IN INDIA 2012.PPT

Executive Summary

Market

Drivers & Challenges

Competition

Vending machine market in India is still at a nascent stage and is expected to witness dynamic growth

Vending machine installation per year is expected to reach a6 units by 20 ‐‐, growing at a CAGR of z%, from a1 units in 20 ‐‐

Only ~a2 of the potential vending machine market in India has been tapped, indicating a huge scope for growth in future

Various kinds

of

vending

machine

include

type

1

vending

machines,

type 2

vending

machines,

type 3

vending

machines, type 4 vending machines and type 5 vending machines

Drivers – Increasing consumerism – Growth in organized retail – Growing urbanization and corporate culture

– Improved technology and new applications – Changing lifestyle

Challenges – Payment mechanism and maintenance – Availability of cheap labour – Consumer perception

Major Players

Player 1 Player 2 Player 3

Player 4 Player 4 Player 5

Export Import

Export of automatic vending machines and vending machines (excluding automatic): INR b1 mn and INR b2 mn in 20 ‐‐ ‐‐‐

Imports of automatic vending machines and vending machines (excluding automatic): INR c1 mn and INR c2

mn in 20 ‐‐ ‐ ‐‐




• Introduction

•Market Overview•Export ‐Import

•Drivers & Challenges•Competition

•Strategic Recommendations

•Appendix




S A M P LE

Vending Machine – Introduction

Vending machines dispense products on insertion of requisite currency or credit

Vending machines are stand ‐alone automatic dispensers of various types of products, which operate on insertion of currency or credit by customers into the machine

Product Selection

Finding 1

Finding 1

Vending Feedback Payment Modes

Article Dispensing

Finding 3

Finding 3

Finding 2

Finding 2Finding 4

Finding 4Vending Mechanism




Vending Machine Market ‐ Overview

Vending machine market in India is expected to grow strongly in the near future

• Vending machine market in India is still at a nascent stage and is expected to witness dynamic growthChanging lifestyle, technology, and increasing consumerism is expected to increase the demand for vending machines in India

• Type 1 vending machines account for the largest share ~y% of annual installation of vending machines in IndiaIt is expected to have a huge growth potential ~ z% over the next 5 years

Presently, type 1 vending machine market is valued at ~INR f mn

• Type 2 vending machines are picking up fast, however, its share is expected to decline from p% in 2011 to q% in 2016These kind of machines are much costlier than the type 1 vending machines

•The others segment will be primarily driven by the type 3 vending machines as Reserve Bank of India has been suggesting various banks across the country to install them for facilitating coin distribution

Besides, Ministry of Railways has decided to install type 3 vending machines in railway stations

• Vending of services is a fairly new concept and is likely to increase its share in business with time

• Both sales of vending machines, and goods and services sold through these machines are expected to develop strongly in the next 5 years

a2% a1%Untapped Market

Tapped Market

Only ~a1% of the potential vending machine market in

India has been tapped, indicating a huge scope for

growth in future

Vending Machine –Market Potential


http://slidepdf.com/reader/full/market-research-report-vending-machine-market-in-india-2012 6/166VENDING MACHINE MARKET IN INDIA 2012.PPT

Vending Machine Market Size & Growth – Annual Installation

Vending machine installation per year is expected to reach a6 units, growing at a CAGR of z% during 2011 ‐16

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,00075,000

80,000

unit

+z%

2016e

a6

3.5%

7.0%

89.5%

2015e

a5

3.6%

7.5%

88.9%

2014e

a4

3.8%

8.2%

88.1%

2013e

a3

4.1%8.8%

87.1%

2012e

a2

4.5%9.5%

86.0%

2011

a1

5.0%10.0%

85.0%

Others

Type 2Type 1

Segments CAGR (2011 ‐16)

+x1%

+x2%

+x3%



SAMPLEVending Machine – Business Model

Vending machines are mainly managed by operators and are sold directly by manufacturers

Corporates and Companies

Vending Operators

Step 1 Step 2 Step 3

Finding 3

Finding 2

Manufacturers

• Finding 1



SAMPLEVending Applications (1/5)

Hot Beverages Vending Machines

Types of Machines Installation Locations

• Type 1• Type 2• Type 3• Type 4

• Location 1• Location 2• Location 3• Location 4

• Finding 1

Future Outlook

• Finding 1• Finding 2



Exports of automatic vending machines are expected to increase further with rising global demand

Exports – Overview Exports (Value)

Country ‐wise Exports (2011 ‐12) Share of Exports (2011 ‐12)

• Export value of automatic vending machines in 2011 ‐12 reached INR a4 mn, up by x1% over 2010 ‐11

• Country 1 and Country 2 together accounted for r% of the total automatic vending exports

• Country 1 has been the largest importer of automatic vending machines and parts in 2011 ‐12 , accounting for a1% of the total exports

• Exports 2012 ‐13 (Apr‐Jun) : INR a5 mn 0

100

200

300

INR mn +x%

2011 ‐12

a4

2010 ‐11

a3

2009 ‐10

a2

2008 ‐09

a1

a7%

a6%a5%

a4%a3%

a2%

a1%

OTHERS

Country 6Country 5Country 4Country

3

Country 2Country 1

Type 1 machines accounted for majority of the vending exports

b2%

b1%

b3%

Type 2Type 1 Type 3



Drivers & Challenges – Summary

Growth in

FMCG

sector

Drivers

Increasing consumerism

Growth in organized retail

Growing urbanization and corporate culture

Improved technology and new applications

Changing lifestyle

Challenges

Payment mechanism and maintenance

Availability of cheap labour

Consumer perception



Increasing consumerism

Growth in consumerism will drive the use of vending machines in India

• Finding 1

• Finding 2

• Finding 3

• Finding 4

Impact

23%

23%

3%

9%7%

0%

20%

40%

60%

80%

100%

2025e

v3

15%

34%

24%

2015e

v2

9%

33%

35%

14%

2005

v1

49%

13%

9%

INR tr

Type 5

Type 3Type 2Type 1

Type 4

>z1

z2‐z3

z4‐z5

z6‐z7

<z8

Household Income Brackets(INR ‘000)

24%

24%

35%

INR tr

100%

80%

60%

40%

20%

0%

2025e

x3

3%

17%

20%

2015e

x2

10%

36%

35%

8%12%

2005

x1

50%

12% 6%7%

Aggregate Consumption Aggregate Disposable Income

S A M P L E



SAMPLEPublic: Domestic Company – Company 1 (1/3)

Key People

Products and Services

Company Information Offices and Centres – India

BSEStock Exchange

Corporate Address 414, City 1, State 1‐ x00 0‐‐, India

Tel No. +xx‐yyy‐zzzzzzz

Fax No. ++xx‐yyy‐zzzzzzz

Website www.xxxi.com

Year Founded 19 ‐‐

Ticker Symbol 50 ‐‐‐

Name Designation

Person 1 Chairman and CEO

Person 2 Vice Chairman

Person 3 Chief Financial officer

Person 4 Executive VP

State 1Head Office

Type 13, Type 14, Type 15, Type 16Category 4

Type 9, Type 10, Type 11, Type 12Category 3

Category Types

Category 1 Type 1, Type 2, Type 3, Type 4

Category 2 Type 5, Type 6, Type 7, Type 8



SAMPLEFinancial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR y4 mn in FY 2012, as compared to net profit of INR y3 mn in FY 2011

• The company reported total income of INR x4 mn in FY 2012, registering an increase of d% over FY 2011

• The company earned an operating margin of a1% in FY 2012, an increase of a2 percentage points over FY 2011

• The company reported debt to equity ratio of b1 in FY 2012, a decrease of b2% over FY 2011

Key Financial Performance Indicators

Indicators Value (‐‐/11/2012)Market Capitalization (INR) ‐Total Enterprise Value (INR) ‐EPS (INR) ‐PE Ratio (Abs) ‐

Particulars y‐o‐y change (2012 ‐11)

2012 2011 2010 2009

Profitability RatiosOperating Margin ‐ ‐ ‐ ‐ ‐

Net Margin ‐ ‐ ‐ ‐

Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐

Return on Equity ‐ ‐ ‐ ‐

Return on Capital Employed ‐ ‐ ‐ ‐ ‐

Return on Working Capital ‐ ‐ ‐ ‐

Return on Assets ‐ ‐ ‐ ‐ ‐

Return on Fixed Assets ‐ ‐ ‐ ‐

Cost RatiosOperating costs (% of Sales) ‐ ‐ ‐ ‐

Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Interest costs (% of Sales) ‐ ‐ ‐ ‐

Liquidity RatiosCurrent Ratio ‐ ‐ ‐ ‐

Cash Ratio ‐ ‐ ‐ ‐ ‐

Leverage RatiosDebt to Equity Ratio ‐ ‐ ‐ ‐ ‐

Debt to Capital Ratio ‐ ‐ ‐ ‐

Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐

Efficiency RatiosFixed Asset Turnover ‐ ‐ ‐ ‐ ‐

Asset Turnover ‐ ‐ ‐ ‐

Current Asset Turnover ‐ ‐ ‐ ‐ ‐

Working Capital

Turnover

‐ ‐ ‐ ‐

Capital Employed Turnover ‐ ‐ ‐ ‐ ‐

Improved Decline

Total Income Net Profit/Loss

0

1,000

2,000

3,000

0100

200

300

400

INR mnINR mn

2012

x4

y4

2011

x3

y3

2010

x2

y2

2009

x1

y1

Public: Domestic Company – Company 1 (2/3)



SAMPLEKey Business Segments Key Geographic Segments

Business HighlightsDescription News

Overview

• Company 1 launched its first type 1 vending machine in Oct. 20 ‐‐ and currently has presence across State 1, State 2, State 3, State 4, State 5 and State 6 with ~ x vending machines

They vend both food and non ‐food products like product 1, product 2, product 3, product 4, product 5, product 6, product 7 etc.It operates in the vending segment under the brand name ‘brand 1’ and is present across leading malls and large corporate offices like Company 2, Company 3, Company 4, Company 5, Company 6, Company 7, Company 8

Future Plans • It has recently bagged the exclusive rights for selling product 8 in State7 Airports and will shortly be present across x stations of the upcoming State7 Metro

38% 39% 42% 34%

0%

50%

100%

2012

23%

42%

2011

20%

39%

2010

20%

41%

2009

22%

40%

Segment 3Segment 2Segment 1

30%28%0%

50%

100%

2012

100%

2011

100%

2010

70%

2009

72%

Country 2Country 1

Public: Domestic Company – Company 1 (3/3)



SAMPLE

VENDING MACHINE MARKET IN INDIA 2011.PPT

Strategic Recommendations

• Recommendation 1 • Recommendation 2

• Recommendation 4• Recommendation 3

Strategic Recommendations

There is huge scope for vending machines in India which can be achieved by addressing the issues faced by earlier models and redesigning them to adapt to the specific market needs




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market research report : vending machine market in india 2012

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