Amit Burman

Chairman
Lite Bite Foods
The Great Indian Bazaar

• With a GDP of US$1 Trillion, India is the fourth largest

economy on a Purchasing Power Parity basis after US,
China & Japan
• Second most populous country in the world with over
53% of the population under 25 years
• FDI inflows have grown 700
557
at a CAGR of 55% between
600

FY04-FY08 to reach
500

400
256
US$24.6 Billion In Millions
300

• Indian Economy is more

200
55
100
8 19
resilient than most others 0
1985 1995 2005 2015 2025

Middle Class in India Source: McKinsey

Food Retail: A Feast of Opportunities
Food Retail: A Feast of Opportunities
Growth Drivers
A large & growing Middle Class with high disposable income
& rapid growth in urbanization

F&B Retail Services Market In India

20000
1450
In US$ Millions
18000
1111
16000
17500

Despite the entry of 14000

Evolution of eating out
867
15000

global Restaurant 12000

444 578
as a habit among
brands, organized F&B 10000
11800

Indian families is
retail penetration in 8000
9556 9356

leading to increased
India still remains 6000
outdoor dining
very low 4000

2000

0
2004 2005 2006 2007 2008

Unorganized Organized

Entry of Modern Retail & emergence of new Restaurant

Formats across the country
Food Retail: A Feast of Opportunities

• Despite a population of over a billion

and a 400-million-strong Middle Class,
organized food retail in India is still in
its infancy
• Big names present in larger format
retails, but F&B retail is still dominated
by Mom-’n-Pop stores
• Food retail is on a roller coaster ride
as Indians continue to have a feast,
helping this segment grow by 30%
• Good opportunity for more organized
players to enter the fray
Food Retail: A Feast of Opportunities
Increasing share of discretionary items in the Household Budget
is good news for the industry. Its share is projected to grow
from 52% in 2005 to 70% in 2025

Share Of Average Household Consumption

Rs 60,000 Cr Rs 82,000 Cr Rs 140,000 Cr Rs 248,000 Cr

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
1995 2005 2015 2025

Food, Beverages & Tobacco Apparel Household Utilities

Household Products Personal Products Transportation
Communication Education & Recreation Healthcare

Source: McKinsey
Food Retail: A Feast of Opportunities

• While household spending on

vacations and big ticket purchases have
been slashed, eating out still figures
prominently on their ‘To-Do’ list
• The big change here is that people are
spending less in 5-Star properties & are
increasingly visiting quality food retail
outlets in high-streets and malls
• The Result: Every second food retail
chain in the country is expanding and
even going to cities in Bihar,
unthinkable just a few years back
Food Retail: A Feast of Opportunities

• F&B space in India is highly complex &

fragmented, with a lack of well
capitalized, professionally organized
national players
• While there are a number of recent
entrants in this space, there are no
dominant players
• Most of the new entrants come from
broader Retail/Property Development
backgrounds
• The opportunity to create a dominant
pan-India position in this niche exists
Food Retail: A Feast of Opportunities

• Corporate Catering, the emerging

business opportunity in F&B Retail
• A vibrant and ever-growing business,
the corporate catering industry is today
said to be around Rs 250 crore and
growing at a healthy pace of 20%
• Growing health & hygiene concerns
among Corporate India is now offering
organized players an opportunity to
make a big difference in this niche F&B
retail market too
A revolution Called ‘Lite Bite’

• A pure-play focussed F&B operator

• Packed with all the right ingredients --
strong capital backing, great portfolio of
brands & a strong management team
• Will invest Rs 200 Crores to establish
a pan-India network of over 200
restaurants
• Will emerge as the Indian McDonald’s
in the F&B market with a footprint that
spreads across the globe
Bon Appetit