India s Imported Fruit Market The Washington Apple Story

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1 India s Imported Fruit Market The Washington Apple Story Citrus Australia Market Outlook Forum 2018 Sydney, NSW. March 14, 2018 India s Imported Fruit Market The Washington Apple Story

2 India: At A Glance Population More than 1.33 Billion Burgeoning middle class of 300 Million + people Great religious and ethnic diversity Close to 120 languages spoken with 1,500+ dialects Unique cuisines and food cultures based on region, religion & ethnicity

3 Indian Economy: By The Numbers One of the fastest growing economies India showed a growth rate of 7.7% in fiscal 2017, remaining the fastest growing large developing economy GDP per capita stands at US$ 1,718 (Nominal) and US$ 6,658 (PPP) Amongst the largest FDI destinations FDI in India grew to US$ billion, up 60% against the US$ billion in the previous 24 months

4 India: The Giant Awakens India with 1.3 billion people, will soon overtake China. Once a hindrance to growth, it will be its greatest asset in the future Indians are young with over 65% of the population under 35 Majority are highly educated and fluent in English 65% of the population live in rural areas with massive potential for urbanisation Potential demand for a variety of goods and services from a large and expanding middle class is huge

5 From None to Top Honours Apple shipments started trickling into India around 1999 India has grown to be the third largest export destination after Mexico and Canada, supplanting long established destinations such as Taiwan, UAE and Hong Kong/China In regular market conditions it is viewed upon as a safe bet for 5 million cartons

6 India: Washington Apple Shipments 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Sep 1st Half Sep 2nd Half Oct 1st Half Oct 2nd Half Nov 1st Half Nov 2nd Half Dec 1st Half Dec 2nd Half Jan 1st Half Jan 2nd Half Feb 1st Half Feb 2nd Half Mar 1st Half Mar 2nd Half Apr 1st Half Apr 2nd Half May 1st Half May 2nd Half June 1st Half June 2nd Half Jul 1st Half Jul 2nd Half Aug 1st Half Aug 2nd Half YTD Aggregates (In 20 Kg Boxes) Bimonthly Shipping Period

7 Year Round Shipments Quantity in Boxes (20 Kg) 900, , , , , , , , , Sep 1st Half Sep 2nd Half Oct 1st Half Oct 2nd Half Nov 1st Half Nov 2nd Half Dec 1st Half Dec 2nd Half Jan 1st Half Jan 2nd Half Bi-monthly Shipping Period Feb 1st Half Feb 2nd Half Mar 1st Half Mar 2nd Half Apr 1st Half Apr 2nd Half May 1st Half May 2nd Half June 1st Half June 2nd Half Jul 1st Half Jul 2nd Half Aug 1st Half Aug 2nd Half

8 Marketing Campaign Trade engagement Merchandising at modern and traditional retail Retailer partnerships/promotions Consumer events & PR Limited health messaging campaign Limited traditional advertising

9 Product Differentiation

10 Unique Identifier

11 Focus on Traditional Retail Modern retail, despite growth and potential, still sells under 20 percent of imported apples in India Modern retail plays a disproportionate role in market development, hence can t be ignored Empowerment of wholesalers and distribution in wholesale markets around India

12 Geographical Expansion Over 50 cities with populations over 1 million Challenging to operate beyond the metros Conducted roadshow and consumer contact promotions in 89 cities across India

13 Indian Citrus Situation Area in Hectares Production Metric Tons 2016/ /18 Est 2016/ /18 Est Lemon/Lime 248, ,000 2,364,000 2,273,000 Mandarin 410, ,000 4,438,000 4,412,000 Sweet Lime/Orange 191, ,000 3,209,000 3,305,000 Others 136, ,000 1,408,000 1,728,000 Total Citrus 985, ,000 11,419,000 11,717,000 Source: National Horticulture Board, GOI

14 Indian Citrus Harvest Calendar Jan Fe b Ma r Apr Ma y Jun Jul Au g Se p Oct No v De c Nagpur Kinnow Sweet Lime

15 India: Orange Imports 2016/17 Value (US$ Million) 2017/18 Apr-Dec 2016/17 Quantity (MT) 2017/18 Apr-Dec Australia , Egypt , , South Africa , , Other , Total , , HS Code: ORANGES FRESH OR DRIED Source: Department of Commerce, GOI

16 India: Mandarin Imports Value (US$ Million) Quantity (MT) 2016/ /18 (Apr-Dec) 2016/ /18 (Apr-Dec) Australia Egypt South Africa China PR Morocco HS Code: MANDARINS (INCLUDING TANGERINES AND SATSUMAS) Source: Department of Commerce, GOI

17 Key Takeaways/Recommendations Slice & dice the Indian market Product positioning Follow the sales channels Build partnerships Perseverance

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