Sharing my 2 cents after reading all the concalls and investor presentations.
Catering to New Geographies –
Growth can come from entering new Areas like South and West and they are slowing moving in that direction.
Growth can also come from Exports, they have set up a subsidiary in the Middle East to cater to the MENA market, the products sold in exports are premium however the payments cycle is 40-50 days longer than the domestic sales so it requires larger working capital cycle
The number of times, the word “premiumization” shows up on the concalls, they are a small volume higher value product company and they will not be able to penetrate the mass market and i think they shouldn’t they should stick to their GAME and become better at it. with the increasing GDP and Per capita, slowly a certain percentage of the population will move towards premium products.
Growth can also come from launching new products, products which make take away market share from an incumbent, or probably introducing international products (Indian version) same taste at a decent price point. so innovation will be key for longer-term growth.
Other avenues of growth is obviously from QSR, QSR is highly likely to have a structural growth story in India, so if they increase their wallet share from QSR companies, that would be great. they couls sell muffins, cookies (customized products) BK Cafe, Costa, Starbucks, MCD are the Customers for such products
Biscuits & bread are fully penetrated products, which means that in order to have blockbuster growth, the company will have to gain market share. the population only grows by say 1/2% so the customer base remains the same with a very slow gradual growth.
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