Peer group analysis of food companies .pptx

Accounting for Managers

1. MBA 1 ST SEMESTER SESSION 2024-26 ACCOUNTING FOR MANAGERS

2. PEER GROUP ANALYSIS OF FOOD INDUSTRY

3. PRESENTED BY :-

4. INTRODUCTION OF FOOD INDUSTRY The  food industry  is A complex, global network of diverse businesses that supplies most of the foo d  consumed by the WORLD’S POPULATION the food industry today has become highly diversified, with manufacturing ranging from small, traditional, family-run activities that are highly labour - intensive , to large, capital-intensive and highly mechanized industrial processes. Many food industries depend almost entirely on local AGRICULTURE , FARMS

5. FOOD INDUSTRY MARKET VOLUME :- $192.5 BILLION in 2024 TOTAL INCOME :- $ 883.70 BILLION in 2024 IN 2029 EXPECTED INCOME 7.69%

6. 5 FOOD PRODUCTION COMPANIES ARE :-

7. Nestlé is the world's largest food and beverage company, with a presence in 191 countries. N estle is the largest food company in the world, in terms of revenue . It is a Swiss Company established in 1866 by its founder Henri Nestle. While its main foray is foods and drinks, it has hundreds of products, nearly 2000. Some of its most famous products and brands include Maggi, Kit Kat, Nespresso, Nescafe, etc. NESTLE

8. IN 1983 :- MAGGIE WAS INTRODUCED IN 2015:- MAGGIE WAS BANNED AND HAD CHARGES OF 640 CR CURRENT CEO OF NESTLE IS LAURENT FREIXE

9. FINANCIAL YEAR ANALYSIS PARTICULAR FY2020 FY2021 FY2022 FY2023 FY2024 NET SALES 13,290.16 14,633.72 16,787.43 19,126.30 24,500.00 REVENUE 13,495.88 14,829.52 16,997.96 19,247.51 24,541.85 PROFIT/LOSS 2,082.43 2,114.86 2,390.52 2,998.67 3,932.84 CURRENT INVESTMENT 722.94 63.28 217.35 301.77 39.98 TOTAL ASSETS 7,899,73 8,209.93 8,978.74 10,094.19 10,523.06

10. NET SALES :- AS YOU CAN SEE GROWTH IN NET SALES FROM FY2020 TO FY2024 INDICATES INCREASE IN DEMAND ,SUPPLY & MARKET CHANGES REVENUE :- REVENUE IS STEADILY INCREASING FROM FY2020 TO FY2023 REFLECTING STRONG BUISNESS PERFORMANCE REVENUE RISES SHARPLY IN FY2024 SUGGESTING DIVERSIFICATION OR NEW INCOME SOURCE P/L :- SHOWS A STEADY UPWARD TREND FROM FY2020 TO FY2024 INDICATING GOOD COST MANAGEMENT CURRENT INVESTMENT :- There is a fluctuating pattern, starting at 722.94 in FY2020, dropping to 63.28 in FY2021, and recovering to 301.77 in FY2023. FY2024 sees a sharp decline to 39.98, possibly indicating reduced investments or liquidity challenges Total Assets : Total assets show consistent growth, from 7,899.73 in FY2020 to 10,523.06 in FY2024.This growth suggests strong asset management and expansion over the years.

11. PARLE Parle is a confectionery and biscuit company in India that was  founded in 1929 by the Chauhan family of Vile Parle, Mumbai. First factory : The first factory was set up in 1929 with 12 people making confectionery.  First biscuit : The first biscuit, Parle Glucose , was baked in 1939.  First salted cracker : Monaco, India's first salted cracker, was also introduced in 1939.

12. FINANCIAL YEAR ANALYSIS PARTICULAR FY2024 FY2023 FY2022 FY2021 FY2020 NET SALES 16,500 17,223 16,202 13,862 9,946 REVENUE 0.46 0.80 1.39 0.66 5.88 PROFIT/LOSS 40.00% 66.67% 71.43% -38.27% 40% TOTAL ASSETS 21.77 21.17 25.61 25 28 TOTAL LIABILITIES 1.37 0.8 5.32 4.45 7.23 in crores

13. Balaji Wafers is a snack-making company that was founded by the Chandu bhai Virani and his brothers in Rajkot, Gujarat , India. Early years The brothers moved to Rajkot in 1974 to work in the canteen of Astron Cinema. In 1981, they began making wafers and sandwiches in the canteen and named them after the nearby Balaji temple. BALAJI 1992

14. Growth The brothers produced wafers at home until 1989, when they set up a potato wafer facility near Rajkot.  In 1992 , they established Balaji Wafers Private Limited Success Balaji Wafers has become a leader in the snack industry, securing the second position in the potato wafers market, just behind Lays. Values The company focuses on treating employees like family and providing value for money to customers.

15. FINANCIAL YEAR ANALYSIS PARTICULAR FY2020 FY2021 FY2022 FY2023 FY2024 NET SALES 576 315 242 517 578 REVENUE 582 329 249 540 582 PROFIT/LOSS 57.87 25.28 20.38 38.92 40.20 TOTAL ASSETS 1213 1191 1233 1360 1398 TOTAL LIABILITIES 149 108 143 230 225 in crores

16. WHY BALAJI COMPANY WAS MAKING LOSS IN 2021,2022 Impact of the COVID-19 Pandamic Decline in demand Rising costs (potatoes, edible oil, and packaging cost materials increased) Supply chain issues (delay and higher transportation costs) Competition from biggest brands Low consumer spending Production challenges Labour shortages Rural market impact Decline footfall in retail stores

17. Balaji wafers growth strategy after the pandemic Introduce healthier options (health conscious) Affordable and high quality packaging Expand in rural markets Global expansion Enhance marketing Loyalty programs (trusted brand) Wide product range Localized flavors Market captured by Balaji wafers Gujrat covers 90% market Rajasthan, Maharashtra, goa, MP (70%) 11+ state , 5 state leadership (Rajkot, Amreli, Surat, Indore etc)

18. BRITANNIA Britannia company limited is an Indian multinational food products company which sells biscuit, bread and dairy products. It was found in 1892 by a group of British businessman, currently part of wadia group and head of this company is nusli wadia. The headquarters of britannia company in kolkata. Britannia company is one of the India's leading food company with a 100 year legacy.

19. Britannia's well-known brands include:-

20. FINANCIAL YEAR ANALYSIS PARTICULAR FY2020 FY2021 FY2022 FY2023 FY2024 NET SALES 11599 13136 14136 16300 16769 REVENUE 11322 12671 13731 15839 16396 PROFIT/LOSS 1484 1760 1603 2139 2082 TOTAL ASSETS 7253.34 7416.01 7002 8638 8370 TOTAL LIABILITIES 2215 3327 3849 3845 3873 in crores

21. HALDIRAM HALDIRAM’S is a family-owned Indian snack and sweets company that  started in 1937 as a small shop in Bikaner, Rajasthan Founding Ganga Bishan Agarwal, also known as HALDIRAM’S Ji, founded the company as a sweets and namkeen shop. GLOBAL REACH HALDIRAM’S products are available in over 50 countries, and are sold in supermarkets like Tesco , Somerfield, Spinneys, and Carrefour. Restaurants HALDIRAM’S also runs restaurants in India that serve Indian street food .

22. FINANCIAL YEAR ANALYSIS PARTICULAR FY2020 FY2021 FY2022 FY2023 FY2024 NET SALES 600 356 406 507 535 REVENUE 615 365 418 516 539 PROFIT/LOSS 23.97 -117.65 32.83 44.15 59.06 TOTAL ASSETS 781 629 697 798 719 TOTAL LIABILITIES 286 201 200 200 97.15 In CR.

23. Nestle, Parle, Balaji, Britannia, Haldiram NET PROFIT OF YEAR 2024 Nestle Parle Balaji Britannia Haldiram 3,932.84 0.46 40.20 16396 $200 million

24. CONCLUSION Nestle is a multinational food and beverage company headquartered in Switzerland. It is the world's largest food company, with operations in 190 countries . Parle Products is a food and beverage company in India that's known for its high-quality biscuits, confectionery, and snacks. Britannia is well-known and has a large worldwide footprint.

25. Balaji Wafers has established itself as a prominent player in the Indian snack market, known for its quality products and strong brand presence. Haldiram has a focus on quality and freshness, which has earned the trust of customers worldwide. They use high-quality raw materials.