The floriculture market in India is growing rapidly at over 15% annually. Flower cultivation and production is increasing across the country. Key drivers of growth include scientific cultivation methods, favorable climate conditions, and social/religious events. However, challenges remain around lack of infrastructure and import duties. Major trends include companies acquiring foreign operations, new auction centers, and increased retail offerings. The industry is dominated by a few large players focused on cut flower production and exports.

1. Floriculture Market – India
August 2010

2. Executive Summary
Floriculture market is booming in India and is expected to grow at a% p.a.
Market The area under floriculture cultivation and production of cut flowers and loose flowers is also
increasing
International market provides very good opportunity for the floriculture sector in India
LE
Drivers Challenges
P
Drivers & Scientific methods of flower cultivation Lack of support infrastructure
Favourable agro-climatic conditions Dearth of basic inputs
Challenges
M
Social and religious events
A
International Events and Associations
S
Growing demand from the youth population
Players are acquiring companies in
High Duty in the European Union
Entry of corporate houses
Ethiopia Players are increasing their service
Trends Setting up auction centres offerings
PE Investments and Acquisitions Rapid development of flower retail
chains
Most of the players in the market are engaged in production of flowers and export
Competition Players are acquiring companies in the international market to expand their business operations
Players in the industry include Company 1, Company 2 and Company 3
FLORICULTURE MARKET IN INDIA 2010.PPT 2

3. •Market Overview
•Geographical Distribution
•Export & Import Market
•Drivers & Challenges
•Trends
•Government Initiatives
•Competition
•Key Developments
FLORICULTURE MARKET IN INDIA 2010.PPT 3

4. Floriculture market is flourishing in India with tremendous
growth opportunities
Market Overview Market Size & Growth
•Floriculture market in India is booming amidst INR bn
the growing interest of the farmers and the 25 C
business houses a%
20
India is the t largest producer of flowers after X
15
LE
•In 20-- the total area under flower crops was J B
hectares while in 20--, the same was K 10
hectares
MP
It includes traditional flowers such as flower 1,
flower2, flower 3, flower 4, flower 5, flower 6,
5
0
A
20-- 20--
flower 7 and flower 8
S
•India has more that L export oriented units
•Floriculture products mainly consist of cut
flowers, pot plants, cut foilage, seeds bulbs,
tubers, rooted cuttings and dried flowers or
Production of Flowers
bn
Cut Flowers
MT
Loose Flowers
g%
leaves I
150 d% 1,000 H
The international demand is driven by cut flowers F 800
including flower a, flower b, flower c, flower d, 100
600
flower e, flower f, and flower g E 400
50
•Popular flowers used in the modern 200
floriculture that are in demand are flower u, 0 0
flower v, flower w, flower x and flower y 20-- 20-- 20-- 20--
FLORICULTURE MARKET IN INDIA 2010.PPT 4

5. Floriculture industry is widely spread across the various
states in India
Overview Geographical Distribution
• More than A% of around B floriculture units are
based in State 1, State 2, State 3 and State 4
State 5, State 6, State 7 and State 8 also have large
areas under floriculture
LE
• While in terms of production of loose flowers,
State 9 is the leader and in terms of production of
P
cut flowers, State 5 is the leader
Production of Loose Flowers (20--)
SAM State 1
Production of Cut Flowers (20--)
State 1
k% State 2 s%
State 2
j% r%
i% c% State 3 State 3
q%
h% State 4 State 4
l%
State 5 State 5
g% p%
State 6 State 6
f% d% State 7 State 7
n%
State 8
e% m%
State 9
FLORICULTURE MARKET IN INDIA 2010.PPT 5

6. Demand from international markets is providing huge
opportunities for export in India
Opportunities in the Global Market Global Floriculture – Size & Growth
• In 20--, global floriculture exports were INR A tr
INR tr
• Country 1 is the highest consumer with more than
INR B bn p.a., while Japan ranks second in terms of 10 f% I
flower consumption with more than INR C 8
H
LE
• India grows more than D varieties of flowers and 6 G
exports to E countries across the globe. As such it has
P
4
very good prospects for increasing its export business
2
Floriculture – Export Data
INR bn SAM 0
20-- 20-- 20--
Break up of Exports – 2008-09 Country 1
8 Country 2
J
6 Country 3
v% m% Country 4
K L
4 Country 5
2 u% t% n% Country 6
s% Country 7
0 r% P% Country 8
20-- 20-- 20-- q%
Country 9
FLORICULTURE MARKET IN INDIA 2010.PPT 6

7. Drivers & Challenges – Summary
Drivers Challenges
Scientific methods of flower Lack of support infrastructure
cultivation
Favourable agro-climatic conditions High Duty in the European Union
Social and religious events Dearth of basic inputs
International Events and Associations
Growing demand from the youth
population
FLORICULTURE MARKET IN INDIA 2010.PPT 7

8. Trends – Summary
Players are acquiring companies in Ethiopia
Setting up of auction centres
PE Investments and Acquisitions
Key
Trends `
Entry of corporate houses
Players are increasing their service offerings
Rapid development of flower retail chains
FLORICULTURE MARKET IN INDIA 2010.PPT 8

9. Players in the Market (1/16)
Company Snapshot: Company 1
Corporate Information Financial Performance
Revenue
Headquarters Hyderabad Revenue Profit
INR mn Profit / Loss INR mn
Founded 19-- 100 0
80 -2
Products Cut flowers
60
-4
40
Key People Person 1
20 -6
LE
0 -8
20-- 20-- 20-- 20--
P
Business Highlights
M
• The company has business activities in floriculture and tissue culture. It has developed an online auction portal
A
• Company 1 grows cut roses at Karimsonnen Hally near Bangalore with an installed capacity of A mn and also other cut
S
flowers
• The cut flowers are exported to the Middle East countries, Gulf countries and the Netherlands auctions
FLORICULTURE MARKET IN INDIA 2010.PPT 9

10. Thank you for the attention
The Floriculture Market in India report is a part of Research on India’s Consumer Goods
Industry Series.
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FLORICULTURE MARKET IN INDIA 2010.PPT 10