Comparative Study of Organized Agri-Food Businesses in India

8/2/2019 Comparative Study of Organized Agri-Food Businesses in India

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Comparative Study o Organized Agri-Food Businesses in India

Michael Vinrald Samuel* Mrinalini Shah**

India is the second largest producer of fruits after China with an estimated production of 54.4 million tonnes in 2008.

Indias diverse agro-climatic condition allows production of a wide range of tropical, subtropical and temperate fruits.

Sighting huge business opportunities, retail giants like the UKs Tesco, Frances Carrefour, and American Wal-Mart are

looking to make a foray into the Indian retail market by providing the Indian customer a unique experience of shopping.

Not lagging behind are the Indian cooperatives like Reliance with Reliance Fresh, Aditya Birla Group, ITC, Mahindra &

Mahindra, and Adani Group.

This research has specifically been carried out to understand the present organized agri-food retail sector in India

as well as the objectives, strategies, and financial performances of six existing companies in this business. The research

paper will enable business houses to plan and decide at what level they can venture the present highly fragmented

Indian market.

Introduction

India is the second largest producer of fruits after China

with an estimated production of 54.4 million tonnes

in 2008 (Economic Survey, Ministry of Agriculture,

Govt. of India 2008). Indias diverse agro-climatic

condition allows production of a wide range of tropical,

subtropical and temperate fruits. Indias fruit production

is practised over an area of 3.79 M hectares and

accounts for more than 10 per cent of the worlds total

production, the shares ranging from 4 per cent of citrus

fruits to about 46 per cent of mangoes (MOFPI 2008).

Indias exports of fresh fruit and vegetable reached

Rs 2437.12 crores in 2007-08 (APEDA 2008). Food

processing industry is one of the largest in the country

and has shown a growth rate of 16 per cent in 2008

(MOFPI 2008). Ministry of Food Processing Industries in

India is planning to establish 30 mega food parks with a

subsidy of about $12 million and channelling incoming

FDI across the country. Punjab, Maharashtra, Andhra

Pradesh, Jharkhand, and the North-East Region are thefirst few states the Indian government is considering for

land acquisition ranging from 10 acres to 500 acres for

mega food parks (MOFPI 2008).

A highly fragmented retail sector coupled with

flourishing economy provided an ideal platform for

establishment of organized retailing in India (Economic

Times Intelligence Group 2003). Metropolitan Indians

swiftly shifting lifestyles gave these organized retailers

and supermarkets the critical fecundity to develop and

flourish. In addition to these behavioural changes, the

Indian government revolutionized its policies which

watered down the precincts on overseas ventures for

intercontinental superstore chains to be instituted in India.

Agri-food retailing is a key sector geared to be exploited

as presently this segment is mainly unorganized, besides

being disjointed.

The emerging organized retail sector is expanding

exceptionally with an anticipation of US$ 427 billion by

2010 from US$ 350 billion in 2006 (IBEF 2007). This

unparalleled intensification would primarily impinge

diminutive traders in conjunction with next-door

vendors. Globalization, non-interventionist reforms, and

invigorating pace (8 per cent) of Indian economy have

made the retail majors like the UKs Tesco, Frances

Carrefour, and American Wal-Mart consider foraying

into the currently immature as well as promising

segment by providing the Indian shoppers an inimitable

experience of shopping. Not sheathing behind are the

Indian powerhouses like Reliance with Reliance Fresh,

Aditya Birla Group with more, ITC with e-chaupal,

and Mahindra & Mahindra with Mahindra ShubhlabhServices Limited, (MSSL) to name a few (CRISIL, 2008).

These organized retailers aim precisely to present

the shoppers an improved, in addition to a healthier,

produce at a lower price.

Reliance Industries, Indias leading private

corporation, was one of the initial companies to

establish its own retail chains under the brand name

Reliance Fresh in 2006. Their number of stores soared

from 330 in 2007 to 1,500 by the end of 2008 (CRISIL

2008). During the next few years, Mukesh Ambani,

the billionaire behind the chain, plans to have 4,000

Key words : Agri-Food Supply Chain, Unorganized and Organized Retailing, Business Strategies, New Business

Development, and Company Profiling.


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70 Paradigm l Vol. XIII, No. 2, July - December, 2009

to 5,000 retail outlets double the figure of Tescos

supermarkets within England. These stores are estimated

to swathe in excess of ten million square feet which was

achieved formerly over thirty to forty years in the US and

Europe. Reliance aimed to replace Indias traditional

agri-food supply chain, comprising farmers, middlemen,

wholesalers, retailers, and vendors, with their personal

set of around 500,000 recruits by 2010 (CRISIL 2008).

This study intends to elucidate existing supply chains

of organized agri-food companies in India, business

approaches of existing organized agri-food companies

and an assessment of their pecuniary performances.

Ground survey was carried to identify and map

organized agri-food supply chains. The corporations

were chosen in accordance with their commercial and

pecuniary performances, daton which were obtained

from published annual balance sheets. The study has

been divided into the following three sections:

Discussion on the existing organized agri-food

retail sector in India.

Detailing a few existing organized agri-food retail

companies alongside their business objectives and

strategies in India.

Comparing the financial performance of the

companies considered.

Existing Agri-Food Retail Sector inIndia

To map the echelons of organized agri-food supply

chains the researchers travelled extensively throughout

India. It was established that corporates have ventured

into business at upper and lower levels of existing

unorganized agri-food supply chains. This research

illustrates that organized retailing is a far-fetched dream

in India as agri-food companies are still dependent

upon spot markets to buy and sell their produce (Figure

1). These organized retail companies are operating their

business from:

i. Growers to commission agents and

ii. Commission agents to consumers.

Growers to Commission AgentsForemost agri-food retail chains from growers to

commission agents are Fresh and Healthy Enterprises

Limited (FHEL) (A subsidiary of CONCOR), Adani

Group (with Adani Agri Fresh Limited) and MSSL for

apples. These agri-food retail chains procure fresh fruits

unswervingly from orchards, hoard these, and trade the

same within mandis (spot price markets). These retail

chains maintain cold supply chains throughout the

Leg 1

Growers to

commission agents

Leg 2

Commission agents

to consumers

Whole Saler

Aarhat

Agri-Food

Retail ChainsMashakhar Retailers

Retail Stores

Customer Customer

RetailersOtherMandis Other Cities

Customer

Customer

Grower /

Producer

Normal

TrucksRefrigerated

Trucks

Forwarding

Agent

Agri Food Retail

Chains including

Untifuti, FHEL

and Adani Group


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Comparative Study of Organized Agri-Food Businesses in India 71

shipment. Organized retail chains own CA (controlled

atmosphere) stores which score over conventional CS

(cold stores) as the former controls the entire atmosphere.

The CO2 levels in these stores are contained within

0 to 20 per cent and O2 level is retained between 0

and ambient. The T (Temperature) and RH (Relative

Humidity) are maintained at 2 C and 9095 per

cent respectively (Samuel et. al. 2008). Modified

atmosphere leads to retarding RoR (rate of respiration)

of fruits thereby preserving critical attributes such as the

aura, flavour, and appearance up to six months. These

companies hoard fresh fruits and vegetables for trading

during off seasons. Fresh fruits stored in CA stores score

over those in cold storage as fruits turn soggy and shrink

due to unrestrained high RoR. Introductions of CA stores

have made it possible to in provide better quality fruits

to consumers during off seasons. Organized agri-food

companies ship hoarded fruits to mandis in refrigeratedtrucks across nation and trade the same through

commission agents to wholesalers.

Commission Agents to Consumers

Companies dealing in this part of the supply chain

include Reliance Fresh, Aditya Birla More, Big Bazar,

Spencers, Big Apple, 6-Ten, etc. These retail chains

procure produce from commission agents and supply

directly to consumers through company-operated stores.

Emergence of these retail chains have brought about

significant positive impact upon unorganized retailers in

India as retailers have stopped resorting to malpractices

in terms of weights and quality of produce. Retailers have

begun telephone and door-to-door services in societies

to lure as well as provide conveniences to customers.

These retailers have also begun quoting competitive

prices for customer loyalty.

Existing Agri-Food Retail Companies inIndia:

The study examines a total of six corporations falling inboth halves of the supply chain, i.e.

i. Growers to commission agents and

ii. Commission agents to consumers.

Amongst the studied companies Adani Agri

Fresh Limited, Fresh & Healthy Enterprises Limited,

and Mahindra Shubhlabh Services Limited fall within

the former, while Aditya Birla More, Spencers, and

Subhiksha are in the latter.

Adani Agri Fresh Limited

Adani Group launched their 100 per cent owned

probable causes enunciated were poor post-harvest

management facilities as well as deficient organized

distribution system. The subsequent explanations for

venture were irregular supply of agri-foods within the

domestic markets.

The subsidiary has developed an integrated storage,handling, and transportation infrastructure for fresh fruits

and vegetables across India. Adani Group constructed

CA storage units at three locations (Rewali, Sainz, and

Rohru) in Himachal Pradesh with a combined capacity

of approximately 18,000 Mt to provide consistent quality

of fruits and vegetables throughout the year. Cold supply

chain was considered to increase shelf life of fruits as

well as enhance efficiency of the system. The company

strategized to concentrate on seasonal produce that

were grown far from major consumption markets,

and amendable storage life using modern integrated

cold chain facilities. Superior facilities were thought to

leverage logistics strength in addition to arbitrage price

differential between peak and off seasons.

Fresh & Healthy Enterprise Limited (FHEL)

CONCOR deliberated to capture Indias large

horticultural biodiversity and significant volumes of fruits

and vegetable. As per the industry 30 per cent of the

fruit and vegetable production is lost due to poor post-

harvest management, costing at almost Rs 60,000 cr.

Realizing this potential CONCOR established its fullyowned subsidiary called Fresh and Healthy Enterprise

Limited (FHEL) in February 2006 with Rs 35 crore as

equity from itself. FHEL was set up to create a top-notch

cold chain infrastructure within the country and cold

chain logistics solutions for various stakeholders.

Their first controlled atmosphere (CA) store was set-

up at Rai near Delhi. FHEL intended to develop post-

harvest management facilities including appropriate

handling of produce starting from orchards, during

cold storage, shipment in refrigerated containers, and

distribution, to provide value to consumers. The thoughtbehind was that contemporary cold supply chain will act

as a catalyst for developing a modern, efficient, and

safe food chain to meet rising demands of retail chains.

The company also plans to present customized end-to-

end cold supply chain services from farm gates to end

consumers.

Mahindra Shubhlabh Services Limited (MSSL)

Mahindra Group established Mahindra Shubhlabh in

2000, with an equity stake from International Finance

Corporation (IFC, Washington) with the objective tointegrate agri-food chains from farms to contemporary

retail outlets By 2008 Mahindra Shubhlabh was Indias


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Mahindra Shubhlabh is the first Indian corporate to be

awarded EUREPGAP certificate as Primary Marketing

Organization for grapes alongside GLOBALGAP and

TNC certifications. For domestic consumption MSSL

aims to integrate agri-food supply chain for providing

shoppers a healthy and quality produce at cheapest

price.

Aditya Birla Retail Limited

According to Mr Kumar Mangalam Birla, Chairman,

Aditya Birla Group Indian consumer, are underserved

even with existing shopping outlets as these malls are not

providing an international experience to the shoppers

(Business Line 2007). Sighting the above vision, a string

of conveniently positioned local stores were established

within the brand More for fulfilling the needs of Indian

households. The company plans to build direct linkageswith farmers and invest appropriately in backend

infrastructure to ensure the freshest supply of agri-foods

to consumers by connecting households directly to

farmers. The company acquired Trinethra Super Retail in

January 2007. This deal gave More more than half a

million square feet of selling area in addition to a strong

presence in business in the southern states (Business the

Standards, 2007).

Spencers

Spencers has been a part of Indian retail landscape sinceits inception in 1863. Its presence could be experienced

from Peshawar to Cochin and Karachi to Chittagong.

The company was originally owned by Mr John William

Spencer, and later it acquired Indian ownership and

became a division of RPG Group in 1989. As an early

entrant it introduced Indian consumers with organized

retailing, becoming the countrys first agri-food chain

back in 1920. The company embossed and positioned

their brand as Taste the World in order to provide a

wide range of quality products to discerning young

customers as well as delighting shoppers with excellent

ambience and merchandise. Spencers has been able

to provide quality goods and services by continuously

evolving and innovating.

Subhiksha

Subhiksha ventured the sector in 1997 with its foremost

store in Chennai. Within a decade, the administration

began facing trouble with daily operations resulting in

defaults in vendor payments leading to empty stores.

The company started facing major financial crisis by

January 2009 and in February 2009 the managementdeclared closing every part of its 1,600 outlets till further

notification (ICMR 2009) According to the (Financial

Express, 2009) the main reasons for Subhikshas

failure included small-format grocery retailing, lack

of transparency, and liquidity crisis coupled with poor

management.

Agri-ood companies fnancialperormances

The infer sections enunciated existing agri-foodcompanies business in India. In this section the

researchers have measured the financial performances

of companies to access their growth. Figure 2 illustrates

the financial performance measures considered for the

study:

Asset utilization ratios1. Total income / Avg. total assets2. Total income / Compensation

to employees

3. Sales / Avg. GFA (excl. reva-luation, and work in program)4. Sales /Avg. net fixed assets

Working cycle and turnover ratios1. Debtors (Days)2. Creditors (Days)3. Debtors turnover ratio4. Creditors turnover ratio

Turnover (Total Sales)

Total expenses

Proft ater Taxation (PAT)

Gross Fixed Assets(GFA)1. Plant and machinery /

computers / electricalinstallations

2. Other fixed assets

Return ratio (%)1. PAT/Avg. capital

employed2. PAT/Avg. total assets

Proftability ratio (%)1. Profit before Interest, Taxes,

Depreciations and Amortizations(PBDITA) / Total Income

FinancialPerormance

Measures


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Turnover (Total Sales) and Total Expenses

From figure 3 one can see that the maximum turnover interms of volume has been of Spencers as it possesses itsretail stores providing a range of fast moving consumergood (FMCG) products apart from daily groceries.However, turnover of MSSL and FHEL are relatively low

as the two companies are present only in back-endsupply of fresh agri-foods. Total expenses (Figure 4) ofcompanies are not only proportionate to total sales butsurprisingly are more. By analysing the two figures onecomes across that all companies are incurring heavy

losses in business.

Figure 7: Plant and machinery / computers / electricalinstallations costs (Rs crores) for considered companies

Figure 3: Turnover (Rs crores) for considered companies

Figure 4: Total expenses (Rs crores) for consideredcompanies

Figure 5: Profit after Taxation (Rs crores) for consideredcompanies

Fi 6 G Fi d A (R ) f id d

Figure 8: Other fixed costs (Rs crores) for considered

companies

Proft ater Taxation (PAT)

Figure 5 compliments the above justification by

noticeably portraying PAT in negative. However, by

comparing Figures 3 and 5 one can notice that highturnovers have led to heavier losses.

Gross Fixed Assets

Spencers, Adani Agri Fresh, and FHEL have gradually

built their assets (Figure 6) including plant and machinery,

computers, and electrical installations (Figure 7) in

addition to other costs (Figure 8). A part of PAT may be

explained from fixed assets. However, the next few years

will be critical for these companies as further losses will

result into a catastrophe with fixed assets acting as a

catalyst.

Asset Utilization Ratio

Asset utilization ratio (Figure 9) has been made known

to comprehend growth of the companies. A momentous

dip in asset utilization ratio has been noticed which is

alarming as these trends are universal for all companies.

Asset utilization ratio was further divided in order to

isolate the cause. However, it is observed that trends are

cross-functionally similar, i.e. human resource (Figure

10), operations (Figure 11), and net fixed assets (Figure

12).


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Figure 9: Asset utilization ratios (Total income / Avg.

total assets) for considered companies

Return Ratio

Trends for return ratio were quite similar to profitability

ratio both in terms of average capital employed (Figure

14) as well as total assets (Figure 15). Quick corrective

strategies are required for Spencers and FHEL as these

figures will not permit them to survive for long.

Figure 10: Asset utilization ratios (Total income /

Compensation to employees) for considered companies

Figure 11: Asset utilization ratios (Sales / Avg. GFA (excl.

reval. & WIP)) for considered companies

Figure 12: Asset utilization ratios (Sales /Avg. net fixed

assets) for considered companies

Proftability Ratio

From Figure 13 one observes a positive trend towards

profitability for MSSL. Whereas a dip of fortunes forSpencers and FHEL. Not a single company is generating

profit which evidently indicates that all companies have

Figure 13: Profitability ratio (%) (PBDITA/ Total Income)for considered companies

Figure 14: Return ratio (%) (PAT/Avg. capital employed)

for considered companies

Figure 15: Return ratio (%) (PAT/Avg. total assets) for

considered companies

Figure 16: Working cycle and turnover ratios (Debtors)


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Working Cycle and Turnover Ratio

Working cycle and turnover ratio in terms of cycle

(days) for debtors and creditors (Figures 16 and 17)

were found to be alarming for MSSL. However, debtors

(Figure 18) as well as creditors (Figure 19) turnover ratios

were observed at endurance levels for all consideredcompanies.

costing Rs 177.79 crores. However, over the years their

total sales have only been Rs 26.4 crores with total

expenses to the magnitude of Rs 43.97 crores (Table

1). The total profit after taxation was Rs ()17.56 crores

for the financial year (20078). Figure 20 unlocks an

array of questions which the company management

might find hard to explain in terms of strategies as well

as investments.

Fresh & Healthy Enterprises Ltd. (FHEL)

FHEL being a subsidiary of CONCOR has invested in

two phases in their fixed assets (Figure 3). In financial

year 20067 they spent Rs 54.29 crore and in 20078

Rs 82.61 crore. They have constructed a CA store in

the outskirts of Delhi at a place called Rai. FHEL have

considerably increased their sales from Rs 4.76 crore in

2007 to Rs 16.3 crore in 2008 (Table 1). Though thesales volume has increased four times the expenditure

has increased nine times from Rs 5.1 crore in 2007

to Rs 47.46 crore in 2008 leading to net profit of Rs

()82.61 crore. The management of FHEL needs to

justify the phenomenon of reduction in profits with

increase of sales volumes, as well as how they will

recover high amount invested for fixed asset (Figure 21).

Asset utilization ratio in terms of total income has been

quite low at 0.2, but is good in terms of compensations

to employees 16.32. Sales compared to net as well as

gross fixed assets is quite low at 0.39 and 0.24 in 2008

(Table 1). The profitability ratio is 62.67 and return

Figure 17: Working cycle & turnover ratios (Creditors)

(Days) of considered companies

Figure 18: Working cycle & turnover ratios (Debtors

turnover ratio) (Credit Sales/ Average debtors) of


Figure 19: Working cycle & turnover ratios (Creditors

turnover ratio) (Credit Purchased/ Average creditors) of


Discussion and Conclusion:

Brie assessment o companies based onperormance measures

Adani Agri Fresh Limited

Adani Agri Fresh invested heavily on fixed assets (Figure

Figure 20: Comparative graph between (Gross FixedAssets/ Total Sales/ Total expenses/ Profit after Taxation)

(Rs crore) for Adani Agri Fresh Limited

Figure 21: Comparative graph between (Gross Fixed

Assets/ Total Sales/ Total expenses/ Profit after Taxation)


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ratios are also negative at 24.04 and 20.67 in terms

of capital employed and assets for 2008. Working cycle

and turnover ratio are high in terms of debtors (34.14

days) as well as creditors (98.85 days).

Spencers Retail Limited

Spencers and chiefly involved in front-end retailing

having chain of retail stores throughout India. They have

maximum fixed assets worth of Rs 515.26 crore (Table

1) followed by Adani Agri Fresh with Rs 177.79 crore.

The sales revenue has increase from Rs 90.76 crore

in 2005 to Rs 855.62 crore in 2008. With increased

sales volumes, expenditures have also increased from

Rs 98.81 crore in 2005 to Rs 1063.10 crore in 2008

(Figure 22). However, profit after taxation reduced

from Rs ()3.14 crore to Rs ()89.31 crore during

20058. Amongst all the companies considered in the

study Spencers have the maximum sales, expenditure,

PAT, and gross fixed asset. The asset utilization ratio

(total income/avg. total assets) in terms of total assets

has considerably decreased from 4.02 in 2005 to

1.48 in 2008. The asset utilization ratio in terms of

compensations to employees is downwards from a high

of 19.13 in 2005 to 10.59 in 2008. Sales compared to

net as well as gross fixed assets has reduced significantly

from 7.62 and 8.72 in 2005 to 3.52 and 2.68 in 2008

(Table 1). The profitability ratio at ()12.84 is least for its

class and return ratios have reduced substantially from

()21.00 to ()72.99 and ()13.15 to ()15.36 from2005 to 2009 for capital employed and assets. Working

cycle and turnover were found to be comparatively low

at 9.21 days for debtors and 64.87 days for creditors

in 2008. However, figures of creditors and debtors

increased considerably from 3.31 days and 42.87 days

in 2005 to 9.21 days and 64.87 days in 2008 (Table 1).



(Rs crore) for Aditya Birla Retail Limited

Mahindra Shubhlabh Services Ltd. (MSSL)

MSSL has the lowest fixed assets worth Rs 2.45 crore

(Table 1) followed by FHEL with Rs 82.61 crore. The

sales revenue has increased from Rs 12.38 crore in2005 to Rs 37.38 crore in 2008. With increase in

sales volumes, expenditures have also increased from

Rs 19.41 crore in 2005 to Rs 52.32 crore in 2008.

However, profit after taxation increased from Rs. ()6.06

crore to Rs ()1.86 crore from 2005 to 2008. All the

companies considered in the study are running into

losses but still MSSL leads them with the best figures of

Rs()1.86 crore (PAT). The asset utilization ratio in terms

of total income has been low at 1.1, but is good in terms

of compensations to employees at 12. Sales compared

to net as well as gross fixed assets is high at 15.54 and

22.79 respectively for 2008 which is the highest in thelot (Table 1). The profitability ratio is good at 1.46

and return ratios are comparatively good at values of

()13.78 and ()5.22 in terms of capital employed and

assets for 2008 (Figure 24). Working cycle and turnover

ratio are highest in terms of debtors at 147.05 days as

well as creditors 190.21 days which the management

needs to introspect.



(Rs crore) for Spencers.

Aditya Birla Retail Limited

Aditya Birla More is still premature and has a long

way to go. With only one years performance it is notpossible to assess or conclude their performance (Figure

23) The company management believes they can excel



(Rs crore) for Mahindra Shubhlabh Services Limited

The research enables to understand the existing

organized agri-food retail sector in India as well as theobjectives and financial performances of six existing

i Fi i l t t t f id d i f d


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sustainability, and profitability over the next decade

(Table 2). While concluding, considering the present

pecuniary situation of the companies considered, one is

compelled to think Are organized agri-food companies

really a threat to unorganized agri-food sector in India,

or based on their financial performances they will meet

the same fate as Subhiksha?

Reerences

APEDA (2008), Annual Report, Agricultural and

Processed Food Products, New Delhi Export Development

the Authority, Ministry of Commerce and Industry,

Government of India, pp. 22730.

Business Line (2007), Aditya Birla Retail Plans Rs 9,000-

cr rollout, Aditya Birla press release, 19 May, 2007.

Business Standards (2007), Trinethra acquisition givesBirlas the upper hand, press release, 4 January, 2007.

CRISIL (2008), Annual Retailing Review, Crisil Research,

pp. B5566.

Government of India, (2008), Economic Survey 2008,

New Delhi: Ministry of Agriculture, Government of India.

Economic Times Intelligence Group (2003),

Changing Gears: Retailing in India, Economic that

Times Knowledge Series, Mumbai: Economic Times

Intelligence Group.

Financial Express (2009), Small-format retail biz model

failed Subhiksha, Company Information, 5 March,2009.

ICMR (2009), Subhiksha: An Indian Retailer in Trouble,

Center for Management Research, Case Code:

BSTR333.

IBEF (2007), India Brand Equity Foundation, Ministry of

Commerce & Industry, Government of India, New Delhi

MOFPI (2008), Visions, Strategy and Action Plan for

Food Processing Industries, New Delhi: Ministry of that

Food Processing Industries, Government of India.

Samuel, M.V., B.S. Sahay, and M. Shah, (2008), A CaseStudy on Cost Optimization of Apple Supply Chain,

Redefining Business Horizons, New Delhi: Macmillan

Publishers India Ltd., pp. 15967.


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e1:Fin

ancialperormanceoconsideredcompanies(Datacompiledrom

vario

uspublished

sources)

C

ompany

Sales

(crores)

Total

expenses

(crores)

Proft

ater

Taxation

(PAT)

(crores)

Gross

Fixed

Assets

(GFA)

(crores)

Plant&

machinery

(crores)

Overall

Fixed

Assets

(OFA)

(crores)

Total

income/

Avg.total

assets

Total

income/

Compen-

sationto

employees

Sales/

Avg.GFA

Sales/Avg.

netfxed

assets

PBDITA/

Total

income

PAT/Avg.

capital

employed

PAT/Avg.

total

assets

Debtors

(Days)

Creditors

(Days)

Debtors

turnover

ratio

Creditors

turnover

ratio

-05

Adani

-

-

-

0.5

0.0

7

0.0

5

-

-

-

-

-

-

-

-

-

-

-

-06

Adani

-

-

-

33.9

7

0.1

8

0.1

1

-

-

-

-

-

-

-

-

-

-

-

-07

Adani

-

-

-

1

53.2

6

2.5

1.4

5

-

-

-

-

-

-

-

-

-

-

-

-08

Adani.

26.4

43.9

7

17.5

6

1

77.7

9

98.3

50.0

8

0.1

4

4.2

9

0.2

5

0.1

6

41.3

8

11.1

9

9.2

0

45.6

25

122.2

5

8

12.5

0

-04

Aditya

Birla

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-05

Aditya

Birla

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-06

Aditya

Birla

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-07

Aditya

Birla

-

33.1

7

31.7

7

12.8

8

5.7

3

-

-

0.0

9

-

-

-

9.6

0

9.4

3

0

119.2

3

0

3.1

2

-08

Aditya

Birla

-

-

-

-

-

-

-

-

-

-

3117

-

-

-

-

-

-

-07

FH

EL

4.7

6

5.1

0.1

9

54.2

9

0.0

5

0.0

2

0.0

9

13.2

7

18.3

1

0.1

8

2.2

4

0.3

7

0.3

3

0

840.0

0

0

122.8

5

-08

FH

EL

16.3

47.4

6

18.1

4

82.6

1

44.8

3

16.7

1

0.2

16.3

2

0.3

9

0.2

4

62.6

7

24.0

4

20.6

7

34.1

4

98.8

5

10.6

8

65.0

8

-04

M

SSL

12.4

6

19.4

1

6.0

6

2.0

6

0.3

8

0.0

4

1.6

5

4.8

5

5.7

6.9

4

-32.1

9

115.6

4

56.0

5

41.0

1

64.3

8

8.9

9.4

8

-05

M

SSL

20.7

8

26.2

2

2.6

8

2.0

7

0.3

7

0.0

4

2.1

2

10.5

1

10.0

6

12.9

5

5.3

4

38.8

6

22.7

6

31.2

6

57.5

2

11.6

7

10.9

-06

M

SSL

14.6

1

24.4

4

3.7

5

2.1

5

0.4

1

0.0

5

1.2

3

8.2

9

6.9

2

9.5

5

18.0

9

74.8

5

29.4

0

75.5

7

138.0

4

4.8

2

3.8

9

-07

M

SSL

27.5

3

30.7

3

1.3

2

2.3

6

0.5

8

0.0

5

1.3

3

10.5

12.2

1

17.4

2

1.9

6

19.8

7

6.2

9

112.6

2

173.4

8

3.2

4

2.5

4

-08

M

SSL

37.3

8

52.3

2

1.8

6

2.4

5

0.6

9

0.0

5

1.1

12

15.5

4

22.7

9

1.4

6

13.7

8

5.2

2

147.0

5

190.2

1

2.4

8

2.6

5

-04

Sp

en-

ce

rs

90.7

6

98.8

1

3.1

4

16.7

6

8.3

0

4.0

2

19.1

3

7.6

2

8.7

2

1.0

2

21.0

0

13.1

5

3.3

1

42.8

7

110.0

1

11.2

2

-05

Sp

en-

ce

rs

138.3

2

147.7

5

9.0

6

22.6

4

11.4

6

0

4.1

3

16.4

6

7.3

4

8.6

3.7

5

44.3

6

26.9

9

3.1

2

37.4

6

116.7

2

10.5

9

-06

Sp

en-

ce

rs

290.6

3

335.4

3

15.5

4

71.4

6

33.8

6

0

3.3

13.9

2

7.0

3

7.6

5

3.3

2

37.4

7

17.6

2

5.3

8

74.5

7

67.8

2

7.3

1

-07

Sp

en-

ce

rs

539.8

3

617.0

8

52.3

4

1

88.3

4

74.2

6

0

2.5

8

12.4

1

5.8

4.8

3

7.1

0

45.6

9

25.0

1

6.8

8

64.6

0

53.0

0

6.1

8

-08

Sp

en-

ce

rs

853.6

2

1063.1

89.3

1

5

15.2

6

198.8

8

0

1.4

8

10.5

9

3.5

2

2.6

8

12.8

4

72.9

9

15.3

6

9.2

1

64.8

7

39.6

2

6.5

2

-04

Su

bhik-

sh

a

216.5

6

219.7

2

2.5

8

20.2

1

9.2

1.2

3

4.7

7

80.8

7

12.1

4

15.8

3.9

1

10.5

5

5.5

5

0.5

4

4.4

9

666.3

3

107.8

9

-05

Su

bhik-

sh

a

278.1

3

282.4

7

5.1

7

23.3

10.6

6

1.5

7

3.9

4

72.2

9

12.7

8

18.2

4

4.8

7

11.3

9

7.2

4

0.7

0

3.5

4

515.0

5

126.5

9

-06

Su

bhik-

sh

a

334.9

8

357

6.1

1

89.1

2

16.0

9

1.6

9

2.1

4

82.9

9

10.7

4

7.1

4.9

5

5.6

2

3.8

4

0.4

5

23.2

8

797.5

7

27.3

6


11/12


e2:Comparativegrowthindicatorsoconsideredagrioodcompanies

.

FinancialPerormance

Measures

CompanyNames

Ad

aniAgriFreshLtd.*

FHEL*

MSSL*

Spencers*

Total

Sales(Crores)

Verylow

ascomparedtogross

fixedas

sets

Verylowa

scomparedtogross

fixedassets

60%oftotalexpenses

80%oftotalexpenses

Total

expenses(Crores)

Almost

doubletototalsales

Morethan

doublethetotal

sales

Muchhigherthantotalsales

Muchhigherthangrossfixed

assets

PAT(Crores)

Thecom

panyincurredalossof

-17.5

6

crores.

Thecomp

anyincurredalossof

-18.1

4crores.

Thecompan

yincurredalossof

-1.8

6crores

.

Thecompanyincurredaheavy

lossof-8

9.3

1

crores.

GFA(Crores)

Tenfold

stototalsales

Veryhigh

ascomparedtototal

sales

Extremelylowascomparedto

totalsales

Veryhighasco

mparedtototal

sales

Plant

&machinery

Critical

at98.3

%

Highat44.8

3%

Verylowat0.0

69%

Criticalat198

.88%

OFA

Highat

50.0

8%

Moderate

at16.7

1%

Verylowat0.0

5%

Figuresnotavailable

AssetUtilizationRatio

Total

income/Avg.

totalassets

Verypo

or

Poor

Good

Poor

Total

income/Compensation

toem

ployees

poor

Poor

VeryGood

Poor

Sales

/Avg.

GFA

Verypo

or

Poor

VeryGood

Poor

Sales

/Avg.

netfxedassets

Verypo

or

Poor

ExtremelyGood

Poor

ProftabilityRatio(%)

PBDITA/Totalincome

Compa

nyisincurringheavy

losses

Company

isincurringheavy

losses

Companyis

incurring

losses

Companyisin

curring

losses

ReturnRatio(%)

PAT/A

vg.

capitalemployed

Compa

nyisincurringheavy

losses

Company

isincurringheavy

losses

Companyis

incurring

losses

Companyisin

curring

losses

PAT/A

vg.

totalassets

Compa

nyisincurringheavy

losses

Company

isincurringheavy

losses

Companyis

incurring

losses

Companyisin

curring

losses

Work

ingcycle&turnoverratios

Debtors(Days)

Gooda

t45days

Goodat34days

Extremelypo

orat147days

Terrificallygoo

dat9days

Creditors(Days)

Good

Good

Extremelypo

orat190days

Extremelygoodat65days

Debtorsturnoverratio

Quitelowwhichisextremely

goodfo

rthecompany

Quitelow

whichisextremely

goodforthecompany

Quiteloww

hichisextremely

goodforthe

company

Surprisinglyhighwhichis

criticalforthecompany

Creditorsturnoverratio

Quitelowwhichisextremely

goodfo

rthecompany

Quitehighwhichisextremely

criticalfor

thecompany

Quiteloww

hichisextremely

goodforthe

company

Lowwhichisextremelygood

forthecompany


12/12

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Comparative Study of Organized Agri-Food Businesses in India

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