...FOOD PROCESSING INDUSTRY SNEHA AGRAWAL 1226113152 SUMMARY India’s food processing sector is small and its share in exports of processed food in world trade has remained at about 1.5 percent or $3.2 billion. Food processing industry in India is increasingly seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and agriculture. productivity with slow adoption of technology. On the Infrastructure front, we have supply chain and wastage related problems and low levels of value addition etc. The other issues of concern, holding this sector back are impaired access to credit,inconsistency in state and central polices,which requires , low standards and lack of adequate manpower . White Revolution has benefited the rural areas of our country considerably, the revolution may not be sustained beyond a point because of the lack of purchasing power of the poor Indians The Government of India has allowed 100 per cent FDI under the automatic route in the food processing sector and taken various other measures to improve and expand the industry. INTRODUCTION The Indian food processing industry stands at $135 billion and is estimated to grow with a CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry contributed...
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...Sector Coverage A pril 15, 2008 Indian Processed Food Industry Opportunities Galore Industry Overview Global Processed Food Industry Indian Processed Food Industry Processed Food Industry - A Sunrise sector Where the opportunity lies- areas for investment Industry Analysis Driving Forces Major Challenges Indian Food Processing Industry by sectors Diary Fruits and Vegetable Grains Meat and Poultry Fish Packaged/Convenience Food Aerated Soft Drinks, Packaged drinking water Exports FDI in Food Processing Government Regulation and support Regulatory framework Outlook Initiating Coverage Lakshmi Energy & Foods Ruchi Soya Analyst - Nisha Harchekar nishaharchekar@way2wealth.com Sectors - FMCG, Pharma, Entertainment WAY2WEALTH Securities Pvt. Ltd., 15/A Chander Mukhi, Nariman Point, Mumbai - 400 021. Tel: +91 22 4019 2900 email: research@way2wealth.com website: www.way2wealth.com Indian Processed Food Industry Sector Coverage Opportunities Galore Executive Summary The size of global processed food industry is estimated to be valued around US $3.6 trillion and accounts for three-fourth of the global food sales. Despite its large size, only 6% of processed foods are traded across borders compared to 16% of major bulk agricultural commodities. Indian food-processing industry is miniscule in comparison and is estimated to be US $40 billion and is likely to grow at over 10%, on the basis of an expected GDP growth rate of...
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...ready-to-eat foods. The single family consisted of many people earlier i.e., a group of several nuclear families were living in a single place. Hence, larger quantities of the food were used to be prepared. But as these joint families started disappearing due to various reasons, each single family started using these ready-to-eat foods in order to save time and energy. Due to establishment of multi- national companies in India, the lady of the house also started working, because of which there was no time to prepare food at home. Hence, this created the need for using ready-to-eat foods. Due to raise in income, the standard of living is also changing and there is a strong influence of western countries, more global trade, traveling etc., hence, people are changing their taste to ready-to-eat foods more compared to the old traditionally prepared foods. Table 1: Status of food processing industry in India (http://www.ediindia.org/doc/SpecialPDF/chp-1.pdf) Rank of industry 5th Employment in lakhs 16 Percentage of total industrial labour force 19 Total Industry Output in Percentage 14 Output as percentage of GDP 5.5 Estimated...
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...Supply Chain Challenges for Food Processing Industry. By – Bhupinder Singh. Dated 5th Dec. 2009. Vista Foods – Mumbai An Group Company Vista Foods – Mumbai – India an OSI Group company. OSI Group is strategically organized into three defined Zones – The Americas Zone. The Europe Zone. The Asia /Pacific Zone. Over all OSI Group is in 26 Countries. Serving McDonald’s Worldwide and other international retails label pack. “Be ready to accept a new idea. Innovation is the lifeblood of growth. Create an environment that breeds innovation . Maintain consistency while responding to change.” ---- Ray Kroc Chairman Agenda 1 Food Processing Sector in India 2 Supply Chain Challenges in Food Industry 3 Opportunities & Recommendations 4 1 Food Processing Sector in India 2 Supply Chain Challenges in Food Industry 3 Opportunities & Recommendations 5 Food Processing Sector in India Food is the largest consumption category in India... Food Consum ption in India 250 So urce: B M I, Q12009 & CSO C A G R : 5 .3 2 % 229.7 210.3 200 180.1 168.6 151.7 157.7 184.4 191.4 198 1 50 1 00 50 0 2005 2006 2007 2008e 2009f 201 0f 201 f 1 201 2f 201 3f Significant Opportunity India as a huge Consumer Market 6 Food Processing Sector in India India has huge supply advantages due to diverse agro-climatic conditions and wide ranging raw material base… • 52% cultivable land compared to 11% world average...
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...Marketing of Processed Food [Type the document subtitle] 9/1/2012 Sakshi Sethi Roll no. 53 INDIAN PROCESSED FOOD INDUSTRY The food processing Industry in India is of fundamental importance, holding as it does the vital link between agriculture and industry. This industry provides nearly 60 percent of all job opportunities by directly employing around 1.6 million workers. It is the fifth largest industry in the country in terms of production, consumption, export and growth. The worth of the Indian processed foods sector stood at USD 157 billion in FY2012; it is expected to touch USD 255 billion by FY2016 with 13 percent growth rate per annum. The availability of raw materials, changing lifestyles and relaxation in regulatory policies is fuelling the growth of this industry. India is the highest producer of milk in the world at 90 million tonnes per annum and the third largest producer of fish. With an arable landmass of 184 million hectares, it is the second largest producer of fruits & vegetables and the third largest producer of food grains. It has the largest livestock population as well. In addition to its large and wide-ranging raw material base, India has a huge consumer base of over one billion people. All these are positive factors that add vigour to the processed foods industry, which holds tremendous opportunities for large investments. With enormous scope for value addition, increase in the consumption of processed food products in India and many fiscal incentives...
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...INDIAN FOOD PROCESSING INDUSTRY The food processing industry in India is one of the largest in terms of production, consumption, export and growth prospects. Important sub sectors in food processing industries are fruit and vegetable processing, fish-processing, milk processing, meat and poultry processing, packaged/convenience foods, alcoholic beverages and soft drinks and grain processing. According to Ministry of Food Processing Industries, the size of the food processing industry was about Rs.315, 000 crores and included Rs.99, 000 crores of value added products. About 300 million upper and middle class people consume processed food; 200 million more consumers are expected to shift to processed food by 2013. The food processing industry accounts for 13.5% of the country’s industrial output. It generates 18% of gross domestic product and employs about 19% of the industrial labour at national level. Products like papad, pickle and spice mixes have been hugely successful in recent years. The size of this particular segment alone is estimated at about Rs 100 crore. Rabo India Finance had projected that the Indian food processing industry would increase to Rs 11,500 billion by 2014-15. Processed products like ‘chapaties’, ‘subzies’ and portion packs of concentrated curries are fast becoming regular diets, especially for young couples. The product range includes foods like ‘puri-bhaji’ and ‘dosa-vada’. Processed food products like pickles, chutneys, juices and curry powders had...
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...Food Industry Last Updated: June 2012 Introduction The food services sector in India is expected to witness a 50 per cent increase in investments in 2012 to about US$ 750 million, as food suppliers and retail companies plan to scale up business and stay competitive by tapping the large potential of the domestic market. Of the total investments of US$ 750 million in 2012, about US$ 165 million has gone into purely front-end retail, such as fast moving consumer goods (FMCG), food and beverage firms. India is the world's largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, 'Indian Dairy Industry Analysis'. The study anticipates that the milk production in India will grow at a compound annual growth rate (CAGR) of around 4 per cent during 2011-2015. Further, India has emerged as one of the largest potential markets for organic food consumption globally. The organic food is invariably catching up pace among the Indian retailers, especially with the niche retailers owing to wide awakening among Indian consumers towards leading a healthy life, as per RNCOS research report titled, 'Indian Organic Food Market Analysis'. We anticipate that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent. Indians spend US$ 64 billion annually on eating out, which includes $13 billion on eating in quick-service restaurants (QSRs) such as McDonald's and Costa Coffee, propelling...
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...CAN INDIA BE THE FOOD BASKET FOR THE WORLD? N.VISWANADHAM Indian School of Business Hyderabad-500032 n.viswanadham@gmail.com Abstract India can become the food supplier of the world. It has the cultivable land, all the seasons for production of all varieties of fruits and vegetables, an agribusiness system that works although it needs to be vastly improved. The single most important problem facing the Indian agricultural industry is the highly inefficient supply chain. Because of lack of cold chain infrastructure and also a food processing industry about 20 per cent of all foods produced in India (Rs. 500 b) are wasted. By building an efficient and effective supply chain using state of the art techniques it is possible to serve the population with value added food while simultaneously ensuring remunerative prices to the farmers. The surplus of cereals, fruits, vegetables, milk, fish, meat and poultry can be processed as value added food products and marketed aggressively both locally and internationally. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Strategic growth plans for achieving both national and international competitiveness of the food industry are essential. 1. OUTLINE OF THE PAPER In this paper we identify emerging opportunities in the food and cold chain...
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...NATIONAL MANUFACTURING COMPETITIVENESS COUNCIL Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making Final Report March, 2009 Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making DISCLAIMER CRISIL Risk and Infrastructure Solutions Limited (CRIS), a subsidiary of CRISIL Limited, has taken due care and caution in preparation of this Report. This Report is based on the information obtained by CRIS from sources, which it considers reliable. CRIS does not guarantee the accuracy, adequacy or completeness of any information contained in this Report and is not responsible for any errors or omissions, or for the results obtained from the use of such information. This Report should be used in its entirety only and shall not be reproduced in any form without prior permission from CRIS. CRIS and any of its directors, representatives or employees do not accept any liability for any direct, consequential or perceived loss arising from the use of this Report or its contents. CRIS specifically states that it has no financial liability whatsoever to the users of this Report. Final Report Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making TABLE OF CONTENTS LIST OF FIGURES...................................................................................................................................i LIST OF ABBREVIATIONS..........................................
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...FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2012, India needs around US$ 28 billion of investment in the food-processing industry....
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...Aa The Food processing industry has an important role to play in linking the farmers to the final consumers in the domestic as well as the international markets. Food processing combined with marketing has the potential of solving the basic problems of agricultural surpluses, wastages, rural jobs, and better remuneration to the growers. In the next ten years, food production is expected to double. These produces, if processed and marketed smartly, can make India a leading food supplier of the world. India with a population of 1.08 billion (growing at about 1.70% per annum) provides a large and growing market for food products. Food products are the single largest component of private consumption expenditure, accounting for as much as 49.00 per cent of the total spending. Furthermore, the upward mobility of income classes and increasing need for convenience and hygiene is driving demand for (a) perishables and non food staples and (b) processed foods. Also, eating out is a booming practice in urban India and processed foods are accepted as alternative to the home cooked food because of the convenience it offers. Also, with the globalization of trade and availability of high speed logistics, food retailers in developed countries are sourcing an year-round supply of fruits and vegetables from developing countries. Thus, both for local consumption as well for export there is a year round opportunity for fruits and vegetables, meat and poultry products and ready-to-eat...
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...The Indian food and beverage industry (not including alcoholic beverages) was valued at approximately $200 billion in the year 2007, according to a FICCI-Technopak study, and is expected to grow to $300 billion by 2015. Of course, not all of this produce goes in for processing, and the food processing industry is therefore estimated at a smaller $70 billion. Beverages, primarily packaged tea and coffee, milk-based packaged drinks, carbonated drinks and fruit-based drinks account for a small proportion of the industry, a little more than $6 billion. The food and beverage industry is considered a priority sector by the government, since it has potential for generating employment in both urban and rural areas. According to the India Brand Equity Foundation (IBEF), the industry already employs over 1.6 million workers directly, besides its impact on other sectors such as agriculture, logistics and retailing. The food and beverage industry covers many sectors, and the Ministry of Food Processing has broadly divided into the following areas: Dairy processing, Fruits & Vegetable processing, Grain processing, Fish, meat & poultry processing and lastly, Packaged goods such as beverages, snacks, bakery products, convenience/ready-to-cook foods. Currently, many units in the food processing industry work in the unorganised sector, but the share of organised industry is expected to grow, gradually. The packaged food, industry is expected to be a significant contributor to this growth...
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...8 A CPP Report TITLED ‘GODREJ FOOD LTD’ For fulfilling the requirement of the award of degree of BBA Subject: CPP (IMS-206) Under the supervision of Dr. RAJAN SHARMA Assistant professor Submitted to: - Submitted by:- The Director RAVINDER SINGH MBA 5 Year 3rdSeM Roll No. 12 Registration No.14UIM6 Institute of Management Studies Kurukshetra University Kurukshetra Sept.2015 DECLARATION I, Ravindersingh hereby declare that I have completed the report entitled assigned to me by the Institute, to be submitted in the partial fulfillment of the MBA 5 Year Degree from Kurukshetra University. Further, I declared that this is original work done by me and the information provided in the study is authentic to the best of my knowledge and belief. Signature RAVINDER SINGH ACKNOWLEDGEMENT In this project, I have made an honest and dedicated attempt to make the Project Report so easy to understand for a person who is willing to get knowledge about the ‘HOMESHOP18’. I am deeply indebted to my esteemed teacher & our chairman Prof. , K.U.K., because he gave me opportunity of making project report. I am also thankful to my lecturer as well as my supervisor (Guide) Dr. RAJAN SHARMA...
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...6, No. 2, June 2015 ISSUES AND CHALLENGES IN THE SUPPLY CHAIN OF FRUITS & VEGETABLES SECTOR IN INDIA: A REVIEW Saurav Negi1 and Neeraj Anand2 1 Doctoral Research Fellow, Centre for Continuing Education, University of Petroleum and Energy Studies, Dehradun, India 2 Professor and Head (LSCM & Operations), College of Management and Economic Studies, University of Petroleum and Energy Studies, Dehradun, India ABSTRACT Purpose- The entire supply chain of Fruits and Vegetables in India is laden with various issues and challenges. To list the possible challenges and suggest a way forward, there is a need to study the supply chain of Fruits and Vegetables sector in India. So the purpose of this paper is to discuss the supply chain of fruits and vegetables sector in India and explain the issues which are affecting it. Authors also suggested the corresponding mitigation strategies to overcome the identified issues and challenges. Design/methodology/approach-Descriptive research has been used for this study. The supply chain of Fruits and Vegetables sector has been explained and attempt has been made towards identifying the issues affecting the supply chain of the sector. The present study undertakes a thorough review of basic and contemporary literature available and tries to explain the factors affecting the supply chain of Fruits and Vegetables sector in India. The literature has been divided into various themes according to the issues in the supply chain and...
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...Agro Industry Scenario | An Introduction The agro industry is regarded as an extended arm of agriculture. The development of the agro industry can help stabilise and make agriculture more lucrative and create employment opportunities both at the production and marketing stages. The broad-based development of the agro-products industry will improve both the social and physical infrastructure of India. Since it would cause diversification and commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses. The agro-industry mainly comprises of the post-harvest activities of processing and preserving agricultural products for intermediate or final consumption. It is a well-recognized fact across the world, particularly in the context of industrial development, that the importance of agro-industries is relative to agriculture increases as economies develop. It should be emphasized that ‘food’ is not just produce. Food also encompasses a wide variety of processed products. It is in this sense that the agro-industry is an important and vital part of the manufacturing sector in developing countries and the means for building industrial capacities. | | | The agro Industry is broadly categorised in the following types: (i) Village Industries owned and run by rural households with very little capital investment and a high level of manual labour; products include pickles, papad, etc. (ii) Small scale industry characterized by...
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