The India consumption story is one of the most chased themes for investors in the alternative asset class and M&A-savvy corporates driven by the high share of wallet these product and service brands command. With the Indian economy growing at nearly 8% and domestic consumption being largely resilient to the downturn shocks, this story has become even more compelling.
More than bread-n-butter brands like soaps and shampoos, what is really catching the fancy of investors are branded apparel, cafes, hair salons, book store, juice junctions, online coaching services, spas, restaurants and so on. Clearly, the consumption behavior of the growing SEC A urban Indian is driving the mushrooming of new-age brands that are present in interesting niches.
Analysing the deal data from VCC Edge, a financial research platform from VCCircle, investor interest is very high in brands in apparel, retail, hospitality, OTC drugs and lifestyle-driven products and services. And, pureplay FMCG brands lean towards M&A play given their attractiveness to strategic investors. So, what is really happening is that new consumption patterns are driving new consumer brands. For instance, new brands are born in the erstwhile commoditised or unorganized domains such as cab services or coaching classes.
While lifestyle consumption is throwing up new-age service brands, it is still product brands that are at the heart of traditional businesses. Urban consumption has a distinct lifestyle skew be it leisure, wellness, entertainment, F&B and fashion. And, that's where the early stage growth capital is headed. But, growth in traditional FMCG and retail remains intact given India's wide base of pyramid. A lot of strategic money and late stage/buyout funds are chasing this end. The breadth of opportunities (for investors) in domestic consumption is so compelling that it can find a parallel possibly only in China.
According to Motilal Oswal Wealth Creation Study (2004-09), the most consistent wealth creators are consumer-facing businesses with stronge franchise. Businesses like FMCG, pharma and banking are
non-cyclical and have a high degree of customer captivity. With consumerism in India poised to rise, these businesses should continue to create wealth consistently.
So, which areas of the Indian consumption story are most attractive? Will service brands march past traditional FMCG product brands in terms of investor interest? What are the ROI dynamics between product and service brands? Which are India’s future brand giants in the making? How are brands valued? Which are the areas where discretionary spending is high? VCCircle will help you find answers to the consumer psyche and buying behavior.
With over two dozen speakers drawn from an ecosystem of brand gurus, investment pros, FMCG czars and today’s Davids (challenger brands), the VCCircle brand summit will capture defining trends of the Indian consumption story, as it continues to evolve.
8:00 am to 9:00 am
Tea & Registration
9:00 am to 9:10 am
Welcome & Introductory Remarks
9:10 am to 9:30 am
Keynote Address: The Indian Consumption Story: A Macro Perspective
9:30 am to 10:45 am
Panel I: The Great Indian Consumer: Myth or Reality
With the economy growing at 8%, a growing middle class and an enormous bottom of the pyramid market, this is one country in the planet that offers domestic demand for goods and services like no other. The per capita consumption of jam, butter, cola, crisps and an endless list of similar items is much below the global average, leaving that much more room to cover. Predictably, major FMCG and consumer brands are knocking at India’s doors to capture large slices of this market.
-What is the market size and potential for branded goods and services?
-Will this be dominated by multinational or domestic players?
-From a regulatory standpoint, how significantly will the FDI restrictions limit the growth of this sector, particularly retail where there are hurdles to foreign investment?
-What kind of growth opportunities does India’s GDP growth translate into for consumption-led sectors?
--Will urban or rural consumption drive this growth?
10:45 am to 11:15 am
Tea & Networking Break
11:15 am to 12:15 pm
Panel II: The Mofussil Story
The bottom of the pyramid market and rural consumption is clearly hard to ignore. There are homegrown challenger brands which stand tall against the Goliaths.
-What is the opportunity set for regional players and in what domains?
-What kind of companies succeed in the rural game?
-What has been the experience of VC/PE firms in investing in small-town brands?
-How have regional brands survived and overcome competition?
-Is it difficult to invest in local brands as regional promoters may not be quite like their urban counterparts and may be still uncomfortable attracting private money?
12:15 pm to 12:35 pm
Special Session: The Business Of Brands
12:35 pm to 1:30 pm
Panel III: New-Age Brands
-Will service brands march past traditional FMCG product brands in terms of investor interest?
-What are the ROI dynamics between product and service brands?
-Which kind of brands will be India’s future brand giants?
-Are investments in service brands driven by lack of investible opportunities in mainstay brands?
-Brand valuation: How differently is a service brand valued compared to a traditional brand?
1:30 pm to 2:30 pm
Lunch & Networking Break
2:30 pm to 2:50 pm
Keynote speech: Understanding The Indian Consumer
2:50 pm to 3:45 pm
Panel IV: Luxury & Mass Market Brands: A Look At Indian Consumer Pie
-India is at first glance a mass market. But luxury brand retailers have attracted investor interest. Why?
-Where are the opportunities in mass market?
-How big can niche and luxury brands get?
-Does geography restrict a mass market brand?
-Price Vs Quality
3:45 pm to 4:15 pm
Tea & Networking Break
4:15 pm to 5:15pm
Panel V: The Economics Of Deals
-Will India’s consumer businesses see large M&A, consolidation and buyout deals?
-Which part of the consumption story is most attractive from the investors’ and entrepreneurs’ standpoint?
-Will this sector be a play of strategic investors or will VC/PE deals too play a dominant role?
-There have been too few deals led by VC/PE players although this is one of the dominant themes for most of them. Why?
5.15 pm to 5:30 pm
Concluding remarks and vote of thanks
6:00 – 8:00 pm
Cocktails & Networking
India Value Fund Advisors (IVFA) was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class industry leaders, built on the strong foundation of IVFA Values. Steered since its inception by Vishal Nevatia, IVFA has built deep knowledge and skills in the Indian markets and has successfully launched five separate investment funds with a combined corpus of over US$ 1.8 billion. Currently, IVFA is investing out of IVF - V, which has a corpus of US$ 682 million.
IVFA follows either ‘Buy and Build' or ‘Invest and Build' business model. In ‘Buy and Build’, IVFA acquires majority equity stakes, partners with high quality management teams and entrepreneurs to build scale and profitability. On the other hand, in ‘Invest and Build', IVFA acquires significant minority equity stakes and plays a supportive role to existing entrepreneurs in transforming businesses. Over 70% of all capital invested by IVFA till date is under Buy and Build model.
IVFA’s insights and understanding of India has been sharpened over the last 16 years by investing over US$ 1 billion in more than 40 Indian businesses. It has successfully guided these companies in making the transition into well established and large businesses that are valuable, enduring, socially responsible and are creating immense wealth for all stakeholders. Although sector agnostic, IVFA has built strong understanding of sectors like Media & Entertainment, Healthcare, Logistics, Supply Chain & Retailing, Infrastructure Services, Education and Clean Energy.
The IVFA team has been structured with a balanced mix of 9 Investment and 16 Business Managers, who bring with them several hundred man-years of industry experience to achieve the above objective.
IVFA truly values its relationships with investors, entrepreneurs and management teams. It is also very conscious of its fiduciary duty towards the capital under management. This capital has been contributed by over 35 high quality international institutions with a combined investible capital base of over US$ 1 trillion. For more information on IVFA, we request you to please visit http://www.ivfa.com.
Times Private Treaties, since its inception in early 2005, has partnered with potential, emerging and established brands in an endeavor to boost the entrepreneurial spirit. The unique model of Times Private Treaties (TPT) is designed to share risk, accelerate growth and augment the brand value proposition.
Times Private Treaties is a division within the BCCL Group that offers advertising currency in exchange for equity. The reach of the BCCL Group media vehicles enables advertisers to secure a greater share of voice, share of mind and consequently market share, thus increasing their enterprise value.
The Times Private Treaties innovative business proposition was recognized as one of the seven finalists at the INMA World Congress, Miami Innovative Business Model contest 2009. The TPT model aims to create a sound platform for an entrepreneur to whom brand building is a key aspect of growing business.
Our current portfolio includes over 200 investee companies like the Future Group, MCX, Aegon Religare, India Infoline, Lavasa, Videocon Industries, Jaypee Group, Matrix Communications, Lodha group, Provogue, Allied Digital, Zicom, Thyrocare and many more.
o3 Capital is a mid-market investment bank, providing financial and strategic advice to clients. The company is built on two core businesses – Corporate Finance and Alternate Asset Management.
o3 Capital serves a wide range of clients including cutting-edge start-ups, established market leaders, private equity houses and large global corporate entities, across select verticals - Consumer, Healthcare, Industrials, Financial services, Technology and Digital. o3 Capital has successfully consummated 110+transactions in the last 9 years aggregating to over USD 4.5 bn in transaction value.
o3 Capital is a mid-market investment bank, providing financial and strategic advice to clients. The company is built on two core businesses – Corporate Finance and Alternate Asset Management.
o3 Capital serves a wide range of clients including cutting-edge start-ups, established market leaders, private equity houses and large global corporate entities, across select verticals - Consumer, Healthcare, Industrials, Financial services, Technology and Digital. o3 Capital has successfully consummated 110+transactions in the last 9 years aggregating to over USD 4.5 bn in transaction value.
VCC Events opens up the avenues for participation. Join hands to be a part of India’s largest gathering of alternative investments leaders, industry stakeholders and Asia’s influential limited partners, general partners and marquee advisors. Your chance to actively participate and augment yourself as thought leaders.
ITC GRAND CENTRAL, MUMBAI
ITC GRAND CENTRAL, MUMBAI
Contact: Business Attire
Distance: 45 min from the International Airport of Mumbai
Drop us a line and we will call you.
