With an aspiration to grow in consumer wellness space, Zydus Wellness completed its Rs

4,595-crore acquisition of Heinz India's business comprising Complan, Glucon D, Nycil and
Sampriti Ghee brands along with its two large manufacturing facilities

1. Glucon D: It was first launched in 1933, is the leader in the energy drinks segment in
India.

2. Complan : A household brand in the health food drink category, Complan was
introduced in India in 1969 as a milk based health food drink. It is considered to be one
of the strongest brands associated with nutrition and health benefits and has a high
spontaneous recall of nearly 90% in India. Complan was launched in 1951.

3. Nycil: It is the number one prickly heat powder with a pan India presence

4. Sampriti: A premium ghee offers immense opportunities for growth in the large retail
segment.

These acquisition development offers immense opportunity to broaden the Zydus ‘s

Now if we classify the above products on the basis of their categories they would be
1. Personal Care
2. Food & Beverages

Analysis of the Personal Care & Food and Beverages Industry of India

Personal Care

The personal care products (PCP) market in India is estimated to be worth USD 4 bn p.a.
Personal hygiene products (including bath and shower products, deodorants etc.), hair care,
skin care, colour cosmetics and fragrances are the key segments of the personal care
market. Each of these segments exhibits its unique trends and growth patterns. For
example, the largest segment of personal hygiene products, largely dominated by bar soaps,
has grown at 5% p.a. over the last five years. In comparison, the second largest segment,
hair care products have seen a much higher growth of 9-10% p.a. during the same period.
The hair care market can be segmented into hair oils, shampoos, hair colorants &
conditioners, and hair gels. The coconut oil market accounts for 72% share in the hair oil
market.  The skin care market is at a primary stage in India. With the change in life styles,
increase in disposable incomes, greater product choice and availability, people are becoming
more alert about personal grooming. The oral care market can be segmented into
toothpaste – 60%; toothpowder – 23%; toothbrushes – 17%.

Food & Beverages

Food & Beverages Food processing industry is one of the largest industries in India, ranking
fifth in terms of production, growth, consumption, and export. The total value of Indian food
processing industry is expected to touch USD 194 billion by 2015 from a value of USD 121
billion in 2012, according to Indian Council of Agricultural Research (ICAR). The packaged
food segment is expected to grow 9% annually to become a `6 lakh crore industry by 2030,
dominated by milk, sweet and savoury snacks and processed poultry, among other products,
according to the report by CII- McKinsey. The ready-to-drink tea and coffee market in India is
expected to touch 2,200 crore in next four years, according to estimates arrived at the
World Tea and Coffee Expo 2013. Branding could drive the next growth wave in the
country’s food processing sector. The total soft drink (carbonated beverages and juices)
market is estimated at USD 1 billion. The market is highly seasonal in nature with
consumption varying from 25 million crates per month during peak season to 15 million
during offseason. The market is predominantly urban with more than 25% contribution from
rural areas. Coca cola and Pepsi dominate the Indian soft drinks market.

Political Factors
• Tax exemption in sales and excise duty for small scale industries is being implemented by

the government

• There is development in Transportation and infrastructure in rural areas that would help

in strengthening the distribution network.

• Restrictions in import policies.

• Indian government through various schemes is trying to help the agricultural sector.

Economic Factors
• The GDP rate of Indian economy is increasing every year. It is expected in future it would
be better only in comparison with other countries.

• Inflation rate is increasing across the world and India is also no exception. The
government and Reserve Bank of India both are trying to control the inflation rate with the
help of different measures.

• Increase in disposable income has taken place due to higher GDP rate. The per capita
income is increasing so the customers are having more income to spent for various reasons.
• Indian FMCG sector recorded 16% sales growth in last fiscal year and it is expected it
would further improve in the forthcoming years.

• The FMCG sector is a 4th largest sector of Indian economy with market size of more than
60,000 crores. The Indian Territory is very large and number of customers is also very high.

Social Factors
• Demographical analysis

• The Indian culture, social & life styles are changing drastically. The total population is
nearly 115 crores and population includes rich, poor, middle class, male, female, located in
rural, urban and sub urban areas, different level of education etc.
Technology Factors
• Technology has been simplified and available in the industry. Where technology is not
available then it is brought from foreign countries to meet FMCG sector requirements.

• Foreign players help in high technological development. With research and development
facilities the new technologies are developed alone or with the help of foreign players.

Environmental Factors
 Ecological: The ecological and environment aspects such as weather, climate, & climate
changes, which may especially affect industry such as tourism, farming, & insurance.

 Environmental issues: Global warming is one of the major issues now-a-days as external
factor is becoming a significant issue for firms to consider. Many remedies have been taken
to reduce Global warming.

 Environmental Regulation: various regulations have been declared by the government to

LEGAL FACTORS
 Employment law :Employments Law provides equal opportunities to every citizen to
work and earn his livelihood . It provides equal opportunities to every citizen

 Consumer protection: This law helps to protect the rights of consumers & he can file a
case against seller if he fined that he is cheated. Industry-specific regulations: These laws are
related to industry for example- no industry can establish in between cities i.e. it should be
outside the cities.

Personal Opinion

For Heinz, this acquisition will help them to focus on investing in and growing brands within
their core categories mainly ketchup. For Zydus, this acquisition is the opportunity to go into
high growth situation with multiple well-known brands. Since last few years, Zydus was
looking for the target which fits into its strategy. It built a war chest of INR 560 crore. This
acquisition will definitely be going to provide the best opportunity for Zydus to scale its
operations rapidly but not without multiple challenges. Since the last couple of years,
growth for Complan & Glucon D is stagnant. To bring them back on double-digit growth is
going to be the key challenge for Zydus.