Food Processings

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Human Resource and Skill Requirements in the Food Processing Sector
Studyonmappingofhumanresourceskillgapsin Indiatill2022
Table of Contents
1. Environment Scanning and Competitiveness of Food Processing Industry ............................ 5 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 2. Introduction ............................................................................................................................. 5 Global Food Processing Industry ............................................................................................ 5 Overview of Indias Food Processing Industry ....................................................................... 7 Fruits and Vegetables ............................................................................................................ 10 Dairy ..................................................................................................................................... 12 Edible Oils ............................................................................................................................ 13 Grain-based products ............................................................................................................ 13 Growth segments .................................................................................................................. 13 Value chain in the Food Processing Industry ........................................................................ 15 Demand Drivers ................................................................................................................ 16 Key Success Factors and Risk Factors .............................................................................. 18 Outlook for the Food Processing Industry ........................................................................ 19
Human Resource and Skill Requirements in the Food Processing Sector............................. 20 2.1. 2.2. 2.3. 2.4. 2.5. Current Employment Pattern in the Food Processing Sector in India................................... 20 Skill Requirements and Skill Gaps in the Dairy Processing Segment .................................. 23 Skill Requirements and Skill Gaps in the Food Grain Milling Segment .............................. 29 Skill Requirements and Skill Gaps in the Edible Oil Processing Segment ........................... 33 Skill Requirements and Skill Gaps in the Meat, Meat Products and Poultry Processing
Segment ............................................................................................................................................ 38 2.6. 2.7. 2.8. 2.9. 2.10. 2.11. 2.12. 2.13. Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment............ 43 Skill Requirements and Skill Gaps in the Sugar Based Food Segment ................................ 48 Skill Requirements and Skill Gaps in the Fish Processing Segment .................................... 54 Skill Requirements and Skill Gaps in the Beverage Segment .............................................. 56 Emerging Trends in the Food Processing Sector in India ................................................. 59 Projected Industry Size and Human Resource Requirements ........................................... 62 Skill Pyramid .................................................................................................................... 68 Possible focus areas for Skill Building ............................................................................. 68
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List of Figures
Figure 1: Major markets for sale of Processed Food .............................................................................. 6 Figure 2: Evolution of Global Food Demand ......................................................................................... 6 Figure 3: PFCE in Food in India (Rs. billion)......................................................................................... 7 Figure 4: Major Segments in the Food Processing Industry ................................................................... 8 Figure 5: Level of processing in India in select segments ...................................................................... 8 Figure 6: Exports, growth, and share of different APEDA products ...................................................... 9 Figure 7: Major food processing centres in India ................................................................................... 9 Figure 8: Major product categories in F&V.......................................................................................... 11 Figure 9: F&V Value Chain .................................................................................................................. 12 Figure 10: Value chain in the Food Processing Industry ...................................................................... 15 Figure 11: Value chain for Marine Products ......................................................................................... 15 Figure 12: Value chain for Meat and Poultry ....................................................................................... 16 Figure 13: Changing profile of Indias household income ................................................................... 17 Figure 14: Generic Value chain in the Food Processing Segment ........................................................ 20 Figure 15: Value chain within the Dairy Processing Segment ............................................................. 23 Figure 16: Primary Processing of Milk ................................................................................................. 23 Figure 17: Secondary Processing of Milk ............................................................................................. 26 Figure 18: Profile of people employed in the Dairy Processing Segment (Organised) ........................ 27 Figure 19: Value chain within the Food Grain Milling Segment.......................................................... 29 Figure 20: Profile of people employed in the Food Grain Milling Segment (Organised) .................... 30 Figure 21: Value chain within the Edible Oil Segment ........................................................................ 33 Figure 22: Profile of people employed in the Edible Oil Processing Segment (Organised) ................. 34 Figure 23: Value chain within the Meat/Poultry Segment .................................................................... 38 Figure 24: Steps in Meat Processing ..................................................................................................... 38 Figure 25: Value chain within the Fruit and Vegetable Processing Segment ....................................... 43 Figure 26: Profile of people employed in the Fruit and Vegetable Processing Segment...................... 45 Figure 27: Value chain within the Biscuits Sub-segment ..................................................................... 48 Figure 28: Profile of people employed in the Biscuits Sub-segment .................................................... 49 Figure 29: Value chain within the Chocolate Sub-segment .................................................................. 52 Figure 30: Value chain within the Fish Processing Segment ................................................................ 54 Figure 31: Value chain within the Beverage Segment .......................................................................... 56 Figure 32: Profile of people employed in the Beverage Segment ........................................................ 57 Figure 33: Changing structure of the Food Processing Industry........................................................... 63 Figure 34: Share of various states in employment in the Food Processing Industry ............................ 65 Figure 35: Skill Pyramid for the Food Processing Industry .................................................................. 68
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List of Tables
Table 1: Leading companies in F&V Processing .................................................................................. 10 Table 2: Profile of major growth segments ........................................................................................... 13 Table 3: Key Success Factors and Risk Factors in the Food Processing Industry ................................ 18 Table 4: Current employment in the Food Processing Industry ........................................................... 20 Table 5: Functional distribution of human resources across segments ................................................. 21 Table 6: Typical profile of persons employed in the Food Processing Segment (Organised sector) ... 21 Table 7: Distribution of human resources by education level............................................................... 22 Table 8: Bodies under the NDDB ......................................................................................................... 24 Table 9: Skill Requirements and Skill Gaps in the Dairy Processing Segment .................................... 27 Table 10: Skill Requirements and Skill Gaps in the Food Grain Milling Segment .............................. 30 Table 11: Skill Requirements and Skill Gaps in the Edible Oil Processing Segment .......................... 35 Table 12: Skill Requirements and Skill Gaps in the Meat/Poultry Segment ........................................ 39 Table 13: Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment ........... 45 Table 14: Skill Requirements and Skill Gaps in the Biscuits Sub-Segment ......................................... 50 Table 15: Skill Requirements and Skill Gaps in the Chocolate Sub-segment ...................................... 52 Table 16: Skill Requirements and Skill Gaps in the Fish Processing Segment .................................... 55 Table 17: Skill Requirements and Skill Gaps in the Beverage Segment .............................................. 58 Table 18: Projected size of Food Processing Industry till 2022 Rs. billion ....................................... 62 Table 19: Projected human resource requirement for the Food Processing Industry (in 000 persons) till 2022 ................................................................................................................................................. 63 Table 20: Function-wise requirement of human resource (in 000s) till 2022...................................... 64 Table 21: Available Skilled Human Resource Supply in Food Processing on an Annual Basis ......... 65 Table 22: Annual Demand for Skilled Human Resource in Organised Sector in Food Processing Industry ................................................................................................................................................. 66 Table 23: Incremental human resource requirement for persons trained through short-term/modular training initiatives in Food Processing Industry till 2022 (in 000s) .................................................... 66 Table 24: Incremental human resource requirement for persons trained through short-term/modular training initiatives in Food Processing Industry Annual Requirement (in 000s).............................. 67 Table 25: Possible focus areas for Skill Building ................................................................................. 69
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1. Environment
Scanning
and
Competitiveness
of
Food
Processing Industry
1.1. Introduction
Agriculture accounts for about 1/4th of the Indian economy but employs about 2/3rd of its population. India has about 161 million hectares of arable land of which 55 million is irrigated. Considering these factors, it is clear that there is immense potential for the agriculture sector, and therefore the food sector. Food processing enhances shelf life and adds value even if agricultural produce is merely cleaned, sorted, and packaged. Further processing into high value-added products garners greater revenue for the producer. Food Processing is also employment intensive in that for every Rs. 1 million invested, 1.8 jobs and 6.4 indirect jobs are created1. The Processed Food Industry is divided into the following broad segments: Primary Processed Food which includes products such as fruits and vegetables, packed milk, unbranded edible oil, milled rice, flour, tea, coffee, pulses, spices, and salt, sold in packed or non-packed forms. Value-added Processed Food which includes products such as processed fruits and vegetables, juices, jams, pickles, squashes, concentrate, processed dairy products (ghee, paneer, cheese, butter), processed poultry, processed marine products, confectionary, chocolates, alcoholic beverages.
1.2. Global Food Processing Industry

The Global Processed Food Industry is valued at US $ 3.2 trillion and accounts for over 3/4th of global food sales. Despite the large size of the industry, only 6% of the processed food is traded the world over as compared to bulk agricultural commodities where 16% of produce is traded. The USA is the single largest consumer of processed food and accounts for 31% of the global sales. This is because as countries develop, high quality and value-added processed food such as convenience food is preferred over staples, which are prevalent in less developed economies.
MOSPI Page 5 of 71
1.3. Overview of Indias Food Processing Industry

The size of Indias Food Processing Industry in 2008 was over Rs. 3,600 billion (US $ 72 billion)2. The overall consumption in food, as measured by PFCE, is about Rs. 19,000 billion (US $ 220 billion). The PFCE on food has registered a Compounded Annual Growth Rate (CAGR) of 9.8% between 2003 and 2008. Figure 3: PFCE in Food in India (Rs. billion)
12,000 10,000 8,000 6,000 4,000 2,000 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 6,903 7,426 10,995
9.8%
7,785
9,777 8,731
Source: CSO and IMaCS analysis
The major segments in the Food Processing sector comprise of Fruits and Vegetables, Dairy, Edible Oils, Meat and Poultry, Non-alcoholic beverages, Grain-based products, Marine products, Sugar and sugar-based products, Alcoholic beverages, Pulses, Aerated beverages, Malted beverages, Spices, and Salt. Out of these segments, Dairy (16%), Grain-based Products (34%), Baker-based products (20%), and fish and meat products (14%) contribute to a major portion of industry revenues, apart from the manufacture of beverages.
Source: Annual Survey of Industry, NSSO 62nd round, Unorganised Manufacturing Sector In India Employment, Assets and Borrowings, and IMaCS analysis Page 7 of 71
Figure 4: Major Segments in the Food Processing Industry

Fruit and Vegetable Processing 4%
Alcoholic beverages 3% Bread and bakery 20%
Aerated water/soft drinks 9%
Food Grain Milling 34%
Fish Processing 4% Meat and Poultry Processing 10%
Dairy Products 16%
Source: Annual Survey of Industry (ASI), MOFPI and IMaCS analysis;
The level of processing in India is low compared to international levels. Processing of agriculture produce is around 40% in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in Malaysia. Figure 5: Level of processing in India in select segments
Poultry Products
6%
Meat
21%
Milk and Diary
35%
Fruits and Vegetables 0%
2% 5% 10% 15% 20% 25% 30% 35% 40%
Source: MOFPI and IMaCS analysis
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Indias exports in the agri-related areas are estimated to be US $ 19 billion. This includes exports of bulk agricultural commodities too. The Agricultural and Processed Food Products Export Development Authority (APEDA) was formed with the primary objective of increasing Indias competitiveness in exports in processed agri-related produce. The product classes under APEDA are Floriculture, Fresh and Processed Fruits and Vegetables, Animal Products, Organic Products, and Cereals. Export of APEDA products recorded a growth of over 30% in the last two years and stands at Rs. 31,400 crore in 2008 (about 5% of Food Processing Industry and 10.5% of Value-added Processed Food Industry revenues). Figure 6: Exports, growth, and share of different APEDA products
Source: APEDA and IMaCS analysis
The major states in India where Food Processing is carried out are Andhra Pradesh (13.4% of Indias Food Processing industry, and a centre for fruits, vegetables, and grains), Gujarat (12.7%, and a centre for edible oils and Dairy), Maharashtra (14%, and a centre for fruit, vegetables, grains, and beverages), and Uttar Pradesh (12%, across almost all product categories).
Figure 7: Major food processing centres in India

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Others, 16.4% West Bengal, 3.7% Uttar Pradesh, 12.0 %
Andhra Pradesh, 13.4 %
Gujarat, 12.7 %
Karnataka, 5.5 % Madhya Pradesh, 6.5% Maharashtra, 14.1%
Tamil Nadu, 6.9% Rajasthan, 3.1 % Punjab, 5.7%
Source: ASI and IMaCS analysis
The major segments are fruits and vegetables, dairy, edible oil, and grain-based products, which together constitution to about 70% of industry revenues. These segments are outlined below.
1.4. Fruits and Vegetables

India is the second largest producer of Fruits and Vegetables (F&V), accounting for 82 million tonnes and 10.9% of global fruit production, and 47 million tonnes and 8.4% of vegetables production. The prominent processed items are fruit pulps and juices, fruit-based ready-to serve beverages, canned F&V, jams, squashes, pickles, chutneys, and dehydrated vegetables. The major products processed and exported are dried and preserved vegetables, mango pulp, pickle, and chutney. Some of the major companies in this segment are as follows: Table 1: Leading companies in F&V Processing Company Capital Foods Dabur India Ltd. Godrej F&B Green Valley Hindustan Unilever Limited Mafco Mother Dairy (Safal) Products Frozen Foods Jams, Pickles, Fruit Beverages Fruit Juices, Fresh F&V (Retail) Frozen Fruits and Vegetables Jams, Ketchups, Fruit Beverages Frozen fruits and vegetables Frozen processed F&V
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Company MTR Foods Priya Foods Temptation Foods V.P.Bedekar & Sons Pvt.Ltd
Products Pickles, chutneys (Dips) Pickles, Fruit Juices Frozen fruits and vegetables, Purees Spices, Pickles, Fruit & Vegetables Foods, Gravy Mixes
Source: Various secondary sources, media reports
It is estimated that the level of processing in F&V is about 2% and the wastage is about 25%. Juices and drinks from F&V dominate the produce in the organised sector, whiles pickles dominates the produce in the unorganised sector. Figure 8: Major product categories in F&V
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 22% 15% 9% 2.00% 8% 5% 2% Organised 9% 10% 2% 1% Unorganised 50% 33% 20% Juices/Drinks Pulp/Concentrates Potato Chips Pickles Ready Vegetables Sauce/Ketchup Squashes Jam Cooking Pastes
Source: FICCI Knowledge Paper on Processed Food and Agribusiness
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The value chain for this segment is illustrated as follows. Figure 9: F&V Value Chain
Source: Rabo India Finance Limited
1.5. Dairy
India ranks first in the world in terms of milk production in excess of 100 million tonnes growing at a rate of over 4% annually. A large number of households, and small and marginal farmers are engaged in milk production. About 35% of the milk is processed. The organised sector processes about 13 million tonnes of milk while the unorganised sector processes about 22 million tonnes per annum. While private diaries exist, a large proportion of the milk is processed by dairy cooperatives in the country. Chief products manufactured are infant milk food, malted food, condensed milk and cheese. The southern states (about 25% of cooperative capacity each in Tamil Nadu, Karnataka, and Andhra Pradesh, in the organised sector) and western regions (23% of cooperative capacity in Gujarat) collectively contribute for 80% of the milk produced in India. The rapid growth of the dairy-processing industry is likely to lead to a greater demand for valueadded, milk-based products, such as processed cheese, table butter, sour milk, yoghurt and ice cream. A higher demand for branded and probiotic milk has also led to a rise in investment for milk processing.
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1.6. Edible Oils

Edible Oils market in India is expected to touch Rs. 700 billion in 2010 and grow at a CAGR of over 6.5%. India has more than 15,000 oil mills, 600 solvent extraction units, 230 vanaspati (hydrogenated oil) units, and over 500 refineries in this segment. Palm oil (mostly imported) and soyabean oil account for over 50% of consumption followed by mustard oil and groundnut oil. A large proportion of the edible oils is sold loosely in unbranded form (about 90% of consumption), and only a small portion (10% by volume) in sold in branded form. In the branded segment, soyabean oil, sunflower oil, mustard oil, groundnut oil, and olive oil are the major items consumed. In the next 10 years, it is estimated that the unbranded segment would grow at 5.5% and the branded segment would grow at a CAGR of 12%. Dependence on imports would be at about 40% of consumption, especially palm oil imports.
1.7. Grain-based products

Grain-based products are the largest contributor the Food Processing Industry, accounting for over 28% to 30% of revenues. The total rice milling capacity in the country is about 200 million tonnes per annum. Over 90% of the produce falls under the segment of Primary Processed Food.
1.8. Growth segments

Apart from the segments detailed above, we expect growth to be segments profiled below. Table 2: Profile of major growth segments Segment Market Size Expected (Rs. billion) Growth 2008 Fruits and 80 Vegetables 13% till Fruit juices, serve jams, pulps and ITC, HUL, Mother Dairy, Priya Foods, Dabur are major players expected in sauces and ketchups Dairy 1,800 11.5% Packed milk, Cadbury, AMUL, Mother 2022 CAGR3 ready-tobeverages, Major Products Comments
squashes, Highest growth of 17%
pickles, chutneys
Assumptions are detailed in the section on Demand Drivers Page 13 of 71
Segment
Market Size Expected (Rs. billion) Growth 2008 till 2022 CAGR3
Major Products
Comments
ethnic
sweets,
Dairy, Nestle are leading players likely to record highest growth of 17% and 33%4
curd and products,
ghee, milk powder Yoghurt and sour milk are
Meat and 50 Poultry
16.3%
Buffalo Mutton,
meat, Major markets for Meat are lamb Philippines, Malaysia, Egypt, and Mid-East Major markets for Poultry are UAE, Kuwait, Oman, Japan, and Germany Major Meat players & are A.P. Poultry Hyderabad,
meat, Poultry meat
Corporation,
Allana, Al-kabeer, MAFCO
Marine Products
121
14.8%
Fresh Fish, Frozen Major export markets are Shrimp, Frozen USA, Japan, Spain, and UK Seafoods, Pune Bell Foods, fins, Cuttle fish, Major companies are ASF squid, dried items, other frozen items Venkateshwara Hatcheries, Breweries, SAB
Beverages Alcoholic and Malted
420
14.1%
Wine, beer, Indian United Made Liquor Foreign
Miller and Mohan Meakin are major players Wine sector is expected to record fastest growth of 22% Increasing Mergers and Acquisition (M&A) activity
Source: ASI, APEDA, Vision 2015 of MOFPI, other secondary sources, and IMaCS analysis
Source: FICCI Knowledge Paper on Processed Food and Agribusiness Page 14 of 71
Human Resource R and Skill Requirem ments in the Food F Processin ng Sector
The valu ue chain spec cific to Meat t and Poultry y is detailed below. b Figu ure 12: Value chain for Meat M and Po oultry
Sourc ce: IMaCS an nalysis
1.10.
Dem mand Dri ivers
The key y demand driv vers for this sector are in ncreasing inc come levels fuelled f by GD DP growth le eading to a rising middle clas ss. India is expected e to be the only country am mong the BR RIC countries s (Brazil, a) forecasted d to record GDP G growth rates betwee en 5% and 6 6% consisten ntly up to Russia, India, China 2050. g mid ddle class (ex xpected to to ouch 500 mi illion person ns by 2010-1 12) is further r fuelling Indias growing consume erism. This has resulted d in the will lingness to try t new prod ducts, increa ased consum mption of Value-ad dded Process sed Food, movement m to convenience c foods and RTE R foods, shopping at organised o retail ch hains (organi ised food ret tail is expect ted to increa ase from its current c share e of 4% of retail r at a rate of 30% 3 in the ne ext 10 years) ), and increas sing brand co onsciousness s.
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Figure 13: Changing profile of Indias household income
Million Households
199 164 179
6 2 1 32.5 54.2 90.9
Annual Income (Rs.)

Rich (>215000)
Consumers (45000 to 215000)
54.1 71.6 44 28.1 33 1997-98 23.4 2000-01 15.3 12.8 2006-07 74.1
Climbers(22000 to 45000)
Aspirants(16000 to 22000)
Destitutes (<16000)
Source: NCAER and IMaCS analysis
All this is expected to lead to increasing consumption on food. While the proportion of food in the share of wallet is likely to come done, the overall size would continue to increase due to increasing income levels. The following are some of the demand drivers unique to certain segments: Fruits and Vegetables: With the expanding middle income group as a proportion of total population and increasing disposable income in all sections, the expenses on food are increasing. More Indians are becoming health conscious, but due to paucity of time, they prefer processed fruit and vegetables which will be fuelling the demand of these products in India in years to come. Export-led demand growth, demand for fresh F&V at homes, rising preference for organic produce, consumer acceptance of processed food, demand for sauces, concentrates, sauces with changing lifestyles and preference for convenience and ready made produce. Dairy products: Domestic and Export-led demand growth for curd and yoghurt, as well as milk proteins. Meat and Poultry: Increasing consumption levels are expected to drive demand for processed meat and poultry. Vegetarianism in India is actually low, as compared to perception (only
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20% of population are strictly vegetarian), implying that people will experiment with poultry and move to meat as incomes rise. Further, preference for fresh meat in the domestic market and demand for high-vale frozen foods in the export markets will drive growth. Also with the emergence of big players such as Suguna, there will be much more scope of fulfilling the demand supported by their state of art processing infrastructure and increased capacity. Beverages: Changing perception of alcoholic beverages in India from taboo to socially acceptable has led to immense internal demand growth, wide range of product offerings, the opening up and increasing organisation of distribution channels will drive growth of alcohols in the beverages segment, supported by soft drinks, etc.
1.11.
Key Success Factors and Risk Factors
In India, the technology used in processing is not abreast with international trends in all sectors - this is a significant risk factor for the industry across segments. An overview of other key success factors and risk factors for the Food Processing Industry is presented below for select high growth segments. Table 3: Key Success Factors and Risk Factors in the Food Processing Industry Segment Fruits and Vegetables Key Success Factors Ability to establish forward and backward linkages through contract farming, cold chains, and a strong distribution network Use of modern technology in F&V processing methods Using hybrid seeds to improve yields Large number of innovative products and branding. Dairy Products Ability to increasing scale of output Wide product portfolio of high-value products such as yoghurt, sweets Ability to tap into export markets Developing a portfolio of milk-based products. Meat and Poultry Ensuring branding quality and sustained Quality and hygiene is low in street-side wet markets
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Key Risk Factors About 35% of agricultural produce is wasted due to poor cold chain linkages during storage and transportation International trade rules and increasing protectionism in export markets Poor performance of the agricultural/primary sector. than manual
rather
Low
productivity
in
milch
animals
despite the largest bovine population (250 million) Lack of scale in the industry despite of success stories such as AMUL.
Segment
Key Success Factors Ability to tap into export growth in the value-added segment
Key Risk Factors Imperfect slaughtering High supply chain costs as feed constitutes 60% of total broiler costs Relatively unregulated slaughter facilities to the extent of 50%. The country has only 3,600 slaughterhouses, 9 modern abattoirs and 171 meat processing units, and a limited number of pork-processing units Primitive rearing techniques.
Common to industry
Product innovation packaging, look and feel especially in snacks and RTE Competitive pricing Strong branding (along similar lines of an FMCG play).
Poor supply chain facilities and cold storage Continuing preference for fresh food among consumers Poor yield of crops and milch animals.
Source: Various secondary sources, industry updates, and IMaCS analysis
1.12.
Outlook for the Food Processing Industry5
The growth of the Food Processing Industry is likely to be driven by growth in consumption of food (which is in turn driven by rising incomes, changing lifestyles, and a growing middle class), gradual acceptance of processed food, rising share in the export markets. This has been detailed in the section on Demand Drivers. The major growth segments are likely to be: F&V, growing at 13% Dairy, growing at 11.5% Meat and Poultry, growing at 16.3% Marine Products, growing at 14.8% Beverages growing at 14.1%.
The hubs of growth in this will be Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Uttar Pradesh, Karnataka, and Madhya Pradesh.
The projections in this section are likely to change/be refined further based on interactions with industry representatives Page 19 of 71
5
2. Hu uman Resource R e and Skill Requirem R ments i in the Food Processing g Sector
2.1. Current Employm ment Patt tern in the e Food Pr rocessing Sector in n India
The Foo od Processin ng Sector em mployed abo out 8.5 millio on persons in i 2008, wit th about 18% % of the employm ment in the organised o sec ctor. T Table 4: Curr rent employm ment in the Food F Proces ssing Indust try Secto or Organis sed Unorgan nised Total Number of f ersons (millio on) pe 1.53 7.00 8.53 18% 82% 100% Sh hare (%)
Source: Annual A Survey y of Industry, NSSO 62nd ro ound - Unorga anised Manufa acturing Secto or in India - Employ yment, Assets and a Borrowin ngs, and IMaC CS analysis
cessing of fo ood is consis sts of Primar ry Processing which inv volves activit ties such as cleaning; c The proc sorting, grading, as well w as Seco ondary Proce essing in hig gh value add products. Fig gure 14: Gen neric Value chain in the e Food Proce essing Segm ment
Sou urce: Primary y Research and d IMaCS Anal lysis
A large portion of th his value cha ain is in the unorganised d sector and highly fragm mented, start ting from the farm mer to mandi i to the proc cessor, and distributor d an nd retailer. Th he organised d sector contr ributes to about 65 5% of the val lue of output t of the secto or6.
Source: : IAMR Repor rt on Food Pro ocessing Indu ustry Page 20 of 71
2.1.1. Functional distribution of human resources

Our interactions with representatives from the industry reveal that a significant proportion of the workforce is involved in Manufacturing Operations followed by functions such as Testing and Quality and other functions which include Sales and Distribution; support functions such as HR, administration, finance, etc.
Table 5: Functional distribution of human resources across segments Function Procurement Testing & Quality Production R&D Storage Other (sales and other support functions)
Source: Primary Research and IMaCS Analysis
% of employees 10% 20% 55% 1-2% 2-3% 10%
In the organised sector, our interactions with representatives in the industry suggested that a typical ratio for operation of a large unit for post-graduate: graduate: diploma/ certificate holder is 1:2:4 in the Food Processing Industry. This proportion of persons is largely similar across the various segments of the industry. Table 6: Typical profile of persons employed in the Food Processing Segment (Organised sector) Title of statistics Post Graduates: Graduates Post Graduates: DiplomaCertificate-holders Function-wise classification of trained people required per 100 employees Post Graduates (in Food Technology and Management) Graduates 2 Production and Quality Control 1 Management, Technology adoption, Production Typical indicators 1:2 1:4 Remarks about function Management, Technology adoption, Production Production, Supervisory, and Quality Control
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Diploma-holders Certificate holders
2 2
Supervisory and Maintenance
Source: Primary Research and IMaCS analysis
In the unorganised sector, a large portion of the workforce is composed of helpers (who are minimally educated) and a few (1 or 2) trained employees in-charge of the production and quality functions.
2.1.2. Distribution of human resource by education level

The following table represents the education profile of persons across segments of the organised side of the Food Processing sector in India. As seen, most of the persons employed are minimally educated and most have studied till 10th standard or below. Table 7: Distribution of human resources by education level Total employment Employees with management education Proportion of food technologist Post Graduates Graduates Diploma holders Certificate holders (ITI/ITC) 10 standard or below
(those requiring shortterm/modular training/skill building of some form or the other) Source: Primary Research and IMaCS analysis
th
Industry Aggregate 1-2% 20% 0.5%-1% 10% 2%-5% 2%-5% 80%
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2.2. Skill Requirements and Skill Gaps in the Dairy Processing Segment
2.2.1. Value chain in the Dairy Processing Segment
The following figure illustrates the composition of the value chain in the Dairy Processing Segment: Figure 15: Value chain within the Dairy Processing Segment
Milk producer Local collection center Transport Primary processing Secondary processing Retail
Customer Customer
The first step in the value chain is procurement of milk from co-operatives/individual suppliers which is followed by processing, storage, transport, and distribution. There are two stages of processing of milk: the primary processing which yields milk in various forms such as skimmed, toned, double toned, etc. which is packed into poly, tetra packs etc. The secondary processing is used to turn the milk as such in various kind of consumables, where each of such consumption items have different methods of processing and specific usages in the production of milk-based sweets, curd, cheese, icecreams, etc. Figure 16: Primary Processing of Milk
Cooling Standardisation Sterilisation
Collection of milk from producer
Transportation
Pasteurisation
Contration, drying
Testing and measuring
Homogenisation
Product specific processing *
Storing
Storing
Freezing and packing
Distribution for customer
Source: Food and Agriculture Organisation, Based on Industry Inputs
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Human Resource and Skill Requirements in the Food Processing Sector *Product specific processing has been detailed in the following sections, the milk obtained as an output from primary processing can be used for consumption directly in the form of skimmed, toned, malted milk, etc.
The various steps in the value chain are detailed below. 1. Procurement of milk from producers: National Dairy Development Board (NDDB) is the apex body under which state level cooperative federations for procurement of milk are run in India. This system was modelled alike the Kheda District Co-operative Milk Producers Union Limited and it was set up in 1965.Under this system a hierarchy has been established for ensuring streamlined milk production and processing . Table 8: Bodies under the NDDB Body State federations District co-operative union Village co-operative societies Producer members (in Millions)
Source: Website of NDDB
Number 22 170 74,000 9.4
The District co-operative union operates the milk processing plant which also houses the milk chilling centre. This also serves as a hub of production and communication for the state federations. Village milk co-operative It is a society of primary producers formed under the guidance of a supervisor or milk supply officer of the Co-operative Dairy Union (district level co-operative operating the processing plant). A milk producer becomes a member by buying a share from the co-operative society and agreeing to sell milk only to the society. Co-op members elect a managing committee and a chairperson responsible for the recruitment of staff to manage the day-to-day operations of the society. Each society has a milk collection centre for collection of milk from farmers/members. The daily procurement of milk by the co-operatives is 13 million litres per day.
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2. Primary processing takes place at District level collection centres The milk is first filtered so as to remove foreign particles and transported to the processing centre through cold storage tank. Once the milk enters the factory, it is graded by using a sampling method. The sample has to adhere to the specifications of SNF (Solid Non-Fat) value and acidity. In this stage, fat and cream is added or removed depending on the output which is expected (toned, double toned, skimmed, etc.) It is followed by pasteurisation where milk is processed at a controlled temperature to kill pathogens. Homogenisation is then effected to bring consistency in the produce of different suppliers and bring uniformity in specification. After this, milk is then packed (poly, tetra packs) or sold in bulk through token system, and distributed at outlets such as that of Mother Dairy or sent for further processing. 3. Processed milk7 Skimmed milk is prepared by removing the fat, vitamin A, and other fat-soluble vitamins from whole milk. The fat is removed by using a cream separator. After the removal of fat, the milk is suitable for many therapeutic conditions such as diabetic, obesity, high cholesterol, heart diseases, hypertension, etc. Standardised milk is prepared from buffalo milk or a mixture of buffalo and cows milk by mixing with skim milk so that the fat content of the mixture is reduced to 4.5%. Its nutritive value is almost similar to that of cows milk. Toned milk can be defined as the addition of the constituted skim milk to whole buffalo milk so to reduce the fat to 3%. The nutritive value of toned milk is almost similar to that of the fresh cows milk. Double toned milk is prepared by mixing cows milk or buffalo milk with fresh skim milk or skim milk reconstituted from skim milk powder so that the fat content is not less than 1.5%. Except for lower fat and vitamin A contents, the nutritive value of double toned milk is similar to that of toned milk. Sweetened condensed milk contains about 40% sucrose but the concentration of milk solids is nearly the same as in evaporated milk. Because of its high sucrose content it is not suitable for feeding infants. It is used for the preparation of pudding, coffee, and tea. It has to be reconstituted with water before consumption if required. Malted milk powder is prepared from whole milk and malt extract. It contains 15% proteins and 7% fat.
7
Source: Ministry of Food Processing Industry Page 25 of 71
Dried and packed milk could be preserved for longer time it can be dried and packed. The skimmed milk powder is prepared by spray process in which minute droplets of milk are sprayed into a heated chamber and powder falls to the bottom. To reconstitute this powder into milk one part of the powder is added to eight parts of water. Figure 17: Secondary Processing of Milk
Milk Culturing of milk Condensed (Heat desiccated) Rabri, Khoa Acid addition
Milk fat
Cream/ Dahi Lassi Yoghurt Cheese malai Paneer Sweets Ice cream
Butter
Srikhand
Kheer / payasam / ethnic sweets
Ghee
Source: MOFPI Website
4. Secondary Processing of milk The secondary processing of milk involves culturing (or) condensing (or) centrifugation (or) addition of acid to produce the following: Cream: The fat, which floats to the surface of milk when allowed to stand for several hours, is cream. Commercially it is separated by centrifugation. Khoya: Khoya is a milk product in which the water content is reduced to between 20 and 25%. It is prepared by vigorously boiling and stirring milk continuously. Paneer: Paneer is prepared by adding citrus or lemon juice to boiling milk. Commercially the previous residual paneer liquid is used which precipitates casein, lactalbumin, and fat Curd: Curd is a sour milk preparation regularly made and highly consumed in Indian homes. The butter-fat is removed from curd by churning and further used to make ghee.
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2.2.2. Profile of people employed

The following figure illustrates the profile of persons employed in the Dairy Processing Segment. Figure 18: Profile of people employed in the Dairy Processing Segment (Organised)
Large size units: MBAs /Post graduates/ Graduate in dairy technology Smaller size units: Persons with 10 - 15 years industry experience Personnel certified: Graduates with degree in dairy technology,Diploma holders+ 7-8 years industry experience Procurement Head Production Manager Senior Plant Manager
R&D Team head
Quality / Testing
Sales and Distribution head
Freshers, Personnel with certification /dilpoma courses+ 34 years industry experience
Co-operatives / sourcing on contract basis
Line Incharge / Supervisors
Food technologists/ Analysts
Field Officers
Area sales manager
Short term certificate courses/ 10 th-12 th pass with 1-2 years of experience
Operators
In the unorganised sector in dairy processing, there are persons who own and operate units to cater to the demand of milk products such as sweets, ghee, curd, milk, etc. at a localised level.
2.2.3. Skill requirements and skill gaps

The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the organised sector of the Dairy Processing Segment. Table 9: Skill Requirements and Skill Gaps in the Dairy Processing Segment Function Production Level Producer of milk (person Skills required Identifying a loyal consumer locally, or becoming a member of village level coSkill gaps Inadequate education of farmers about
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Function
Level owning cattle)
Skills required operative for getting the best prices of the produce Understanding the basic quality requirements and ways to maintain hygienic conditions Implementing basic value addition in terms of pre-heating, etc. for minimising wastage
Skill gaps latest techniques for minimising wastage Inadequate knowledge of ways of maintaining the quality of produce
Helper / Operator
Knowledge of basic controls of milk processing machines Basic importance of quality maintenance in terms of consistency to rules Understanding basic quality requirements and adequate knowledge of maintaining hygiene while cleaning and packaging.
Inadequate knowledge of machine handling Poor knowledge of operating in a hygienic environment Inadequate ability to forecast demand Inadequate communication skills, especially in local language because of diverse dialects Inadequate ability to practically conduct tests and record results
Procurement
Networking skills to maintain good relationship with the farmers and milk producers/village cooperatives Ability to forecast daily demand and maintain procurement at appropriate levels. Understanding of the safety measures during transport from procurement centres to plant.
Testing/ Quality check
Understanding of correct sampling methods Adequate knowledge of Food Act, the specifications of product wise acceptable constituent levels Adequate practical knowledge on conducting tests, recording results, and reporting.
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2.3. Skill Requirements and Skill Gaps in the Food Grain Milling Segment
2.3.1. Value chain in the Food Grain Milling segment
The following figure illustrates the composition of the value chain in the Food Grain Milling Segment: Figure 19: Value chain within the Food Grain Milling Segment
Farmer produces wheat/paddy Farmer sells to mandi Marketing societies buy from mandi (HAFED, CWC etc.) Secondary processing at processing plant De- husking Paddy separation
* Initial cleaning * Packing * Marking * Stitching * Loading
* Pre-cleaning * Drying * Paddy storage * Secondary cleaning
Polishing
Color sorting
Grading
QC /Inspection
Packing
Retailing
This sector has a mix of entrepreneurs belonging to the unorganised sector, cottage industries, and the organised sector. However, the capacity in primary processing is largely concentrated in the unorganised segment. The processing is primarily related to the following: Rice mills Flour mills Pulse processing Coarse grain processing.
The various steps involved in processing are cleaning, hulling (removal of excess husk), soaking and steaming, drying, milling (conversion to milled white kernels), grading, polishing, and storage.
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The following figure illustrates the profile of people employed in the Food Grain Milling Segment. Figure 20: Profile of people employed in the Food Grain Milling Segment (Organised)
Large size units: Post graduates/ Graduate in food technology Senior Plant Manager
Personnel certified: Graduates with degree in food technology, Diploma holders+ 7-8 years industry experience
Procurement
Production Manager
Quality/ Testing
Sales and Distribution head
Freshers, Personnel with certification/dilpoma courses+ 3-4 years industry experience
Lab Analysts
Area sales manager
Short term certificate courses/ 10th / 12th pass with 1-2 years of experience
Aadti
Operators
Operators
Zone manager

The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Food Grain Milling Segment: Table 10: Skill Requirements and Skill Gaps in the Food Grain Milling Segment Function Operations Level Experienced personnel Skills required Ability to handle breakages/breakdown in machine parts, inadequate inventory Ability to effectively communicate with the team and brief them of production objectives Skill gaps Inadequate team handling and worker handling skills Inadequate planning of work schedules
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Function
Level
Skills required Technical knowledge of milling machinery
Skill gaps
Helper level
Knowledge of basic controls and settings of machines being worked on Understanding of basic mathematics to identify and accordingly implement the instructions of the supervisor pertaining to production schedules. Basic importance of quality maintenance in terms of consistency with respect to. following rules / guidelines
Inadequate understanding of machine controls in Inadequate understanding / knowledge of ways to minimise breakage
Worker at Artiya shop

8
Ability to stitch gunny bags neatly so as to avoid leakage Ability to appropriately mark gunny bags / index them such that markings are unambiguous
Inadequate ability to stitch gunny bags well, leading to leakages from the bags Inadequate ability to follow rules of marking gunny bags Inadequate ability to forecast the demand accurately Inadequate training skills for encouraging the producers for better productivity and quality
Procurement
Understanding of appropriate ways for proper transport of produce till the processing plant Correct forecasting for demand and accepting produce on the same basis from artiyas Networking skills to maintain good link with the producers
Testing
Visual examination skills for faster segregation and checking of input/output Ability to record the results as they are observed and reporting
Inadequate practical expertise in conducting tests
Artiya: Middleman/Agent at the village level engaged in the trading of produce Page 31 of 71
Function
Level
Skills required non adherence to standards
Skill gaps
Contract famer/ Farmer selling Produce in open market
Ability to decide which crop to grow in what quantity and find out the requisite inputs relating to appropriate seed, fertiliser, irrigation, etc. Ability to undertake preprocessing at the farm i.e. the ability to undertake initial sorting, grade the produce for commanding better price in Mandi, etc. Knowledge of best handling practices and transport practices which ensure least wastage due to moisture, microbes, etc.
Inadequate knowledge of latest / best farming practices with because of lack of training /access to other information sources Inadequate knowledge of percentage increase in value with minimal value addition to produce
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2.4. Skill Re equiremen nts and Skill Gap ps in the e Edible Oil Proc cessing Segment t
2.4.1. Val lue chain in n the Edible e Oil Proces ssing segme ent
The foll lowing figur re illustrates s the compo osition of the value cha ain in the Ed dible Oil Pr rocessing Segment: Figure 21: Value chain c within the Edible Oil O Segment
Source e: Primary res search, Food and Agricultu ure Organsiat tion, IMaCS A Analysis
ination of moisture m conte ent on oilsee eds delivered d to the processing mill ls is carried out. The Determi mills are e equipped with w their ow wn laborator ries to carry out the ana alysis. If necessary, the seeds s are dried, to o the moistu ure content required r for safe storage. The oilse eeds are ofte en stored for several months before processing and need n to be kept k at accep ptable levels s of moistur re content to o prevent deteriora ation through h moulds. In n the factory, seeds are su ubjected to a number of p processing st teps prior to oil ex xtraction, suc ch as: Seed cleani ing: The oil lseed is clea aned to remove trash, dirt, d sand an nd metal pie eces. The oilseed is the en weighed for f accurate control of oi il and cake yi ield. Decorticatio on: The shel ll or seed co oat is often removed r fro om the oilsee ed kernel. It helps in raising the oil o content of o the raw material befor re it enters th he extraction n machinery and also ensures high her protein co ontent in the oil-cake.
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Size reduction, rolling: Size reduction of the seed is sometimes followed by rolling to
produce flakes which are then conditioned. Conditioning or 'cooking' oilseeds involves heating the oilseed in the presence of water.
Oil extraction: Oil is extracted from the treated seed particles in continuous screw expellers. In very large extraction operation is used as a pre-treatment before solvent extraction. Solvent extraction: It removes the oil from a flaked seed or oil-cake by treating them with a solvent in which the oil is soluble. Crude oil refining: Crude oil is refined in three main steps, neutralisation, bleaching and deodorising, which remove fatty acids, colour, and off-flavours, respectively. Each of these processes involves heating the oil to a certain extent. The refining processes may be carried out in stages using batch plant or by using equipment providing continuous operation.

The following figure illustrates the profile of people employed in the organised sector in the Edible Oil Processing Segment. Figure 22: Profile of people employed in the Edible Oil Processing Segment (Organised)
Large size units: MBAs/Graduates in oil(food) technology Smaller size units: Persons with 10 - 15 years industry experience Graduates with 3-5 years of experience/ diploma holders with 7-8 years industry experience Lab:Graduates in oil technology, persons with 35years industry experience/ Diploma holders with experience 10th or 12th pass personnel with some experience/personnel certified in short term course Senior Management
Procurement
Sales and marketing
Operations manager
Quailty head
Regional sales officers
Supervisors
Lab technologists
Operators
Operators
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2.4.3. Skill requirements and skill gaps in the Edible Oil Processing Segment
The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Edible Oil Processing Segment. Table 11: Skill Requirements and Skill Gaps in the Edible Oil Processing Segment Function Manufacturing Level / Description Supervisor Skills required Ability to motivate workmen / operators for consistently maintaining better productivity (output per hour) and machine handling skills Excellent communication skills and knowledge of local language Ability to work in teams Operator/ Packer Ability to understand that refining processes are time sensitive processes Knowledge of basic scales for adjusting the correct control settings and codifying of batches (MRP, Batch no etc.) Knowledge of control settingstemperature, time setting controls. Ability to pack quickly Knowledge of label pasting at right place and using appropriate coding Adequate knowledge of machine operations , parts and the ability to undertake preventive maintenance for small machine problems Basic reading and writing skills to be able to understand the standard operating procedure
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Skill gaps Inadequate written / verbal communication skills Inadequate documentation skills Inadequate ability to handle operators
Inadequate knowledge of machine parts, leading to inability to operate machines and tackle breakdowns(sporadic and continuous) Inadequate sensitivity to productivity issues(low process output over a time horizon) Inadequate sensitivity to continuously improve quality by contributing in process improvement (suggesting changes so as to remove redundant steps, decrease time in transporting w.i.p, appropriate storage of materials and inventory).
Function Procurement
Level / Description Firm importing crude oil
Skills required Good spoken/written language skills to be able to deal with foreign suppliers Ability to maintain proper documentation and co-ordinate operations with the shipping/ logistic providers. Knowledge of commodity markets: Since it is a very volatile market, a very good knowledge of operations of the market/hedging, etc. is preferable Computer usage skills are important since all co-ordination with clients, logistic provider etc. happens over the internet and so does the tracking of markets
Skill gaps Inadequate technical knowledge of the product markets, especially at the entry levels Inadequate communication and co-ordination skills while dealing with international clients Inadequate networking, negotiation/bargaining skills for efficient vendor/client management, especially at the entry level
Firm procuring from contract farmers
Excellent command over local language to be able to interact with farmers for local sourcing Ability to co-ordinate with farmers, negotiate prices and discuss quality issues Ability to direct/provide farmers with crop cultivation inputs Ability to motivate team of contract farmers for quality focus and improved productivity
Inadequate ability to motivate contract farmers for continuous improvement in production levels in a predefined time horizon and incremental increase in the quality of seeds and the level of value addition.
Quality
Quality Executive
Ability to understand sampling techniques, so as to be able to collect samples when the produce enters the company gates, perform lab tests and report rejections. Ability to understand regulatory
Inadequate ability to execute the right sampling procedures
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Function
Level / Description
Skills required requirements, such as food laws and adherence to prescribed ingredient proportion level, which if not followed could make the output unsuitable for consumption
Skill gaps
Quality Manager
Infer the sampling report, recheck the rejections, keep track of the related vendors and make necessary communication to the procurement team. Track the quality of output samples and make necessary suggestions to the operations team for process improvement. Documentation and reporting skills
In-adequate attention to working collaboratively for introducing process innovation for improving the productivity of the process and quality of output delivered.
Sales and marketing division
Ability to maintain correspondence with customers and service their requirements seamlessly Ability to approach the market for new customers Very good communication skills for dealing with old and new customers, and intra team communication. Ability to track competition and trends in the market and devise new customer engagement strategies accordingly e.g. competitive pricing /innovative packaging, new marketing campaigns
Inadequate professional communication skills, especially at the entry level
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2.5. Skill Requirements and Skill Gaps in the Meat, Meat Products and Poultry Processing Segment
2.5.1. Value chain in the Meat/Poultry Segment
The following figure illustrates the composition of the value chain in the Meat/Poultry Segment: Figure 23: Value chain within the Meat/Poultry Segment
Contract farmer / farmers obtains the Day-oldchicks-DOCs Sells the table eggs or (bird is sold in live market) or (to processing farm) Processing of meat in abattoir Quality check Packaging Retail
A typical meat processing plant diagram is: Figure 24: Steps in Meat Processing
Water as an input is used at all the stages (excepting packaging)
Slaughtering (after stunning) Hide removal/ de hairing/de feathering Evisceration processing plant Trimming and Carcass washing Boning and chilling
Delivery and holding of livestock
Waste generated: manure, mortalities
Waste generated: waste water, blood
Waste generated: Hides, feathers, heads, and waste water
Waste generated: Offal, Paunch, Manure, waste water
Waste generated: fat and meat trimmings, waste water
Waste generated: Waste water
Source: Primary research, Waste Reduction resource centre website, IMaCS Analysis
The major activity of poultry and meat processing is handled by the organised segment. The industry is segmented in three segments on output basis: Live bird as output: It constitutes major portion of the total meat market in India. A considerable portion of players in this market operate in the unorganised sector (around 40%).
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Processed meat as output: This is a small segment presently, is regulated by large players and is experiencing growth driven by changing consumption patterns Layers market: Here table egg and egg powder (including several variants) are the output. The market is dominated by organised players .The market is dominated by 2-3 players who accounts for about 90% of the total production in this sector.
Also, the various kinds of farms are as below: Broiler Farm: In a broiler farm, the chicken are raised for meat production and the typical bird/worker ratio which is maintained is 1 worker for 2,500-5,000 bird depending on the paying capacity of the farmer. Breeder Farm: In a breeder farm, DOCs are sourced from Grand parent farm are reared and allowed to hatch, the output DOCs are supplied to broiler farms where these are raised and allowed to hatch . Here 1 worker is employed per 1,000 birds because the attention levels to be provided to each bird increases as the gestation period increases. Grandparent Farm: In a grandparent farm, the pure line breed of birds is reared and the worker ratio is maintained at 1:600 birds as the requirements become much more specialised and operational procedures become much more tedious.

The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Meat / Poultry Segment. Table 12: Skill Requirements and Skill Gaps in the Meat/Poultry Segment Level / Description Worker at Broiler farm Skills required Basic knowledge of reading/writing to be able to understand the standard operating procedures as specified by the contracting company Meticulous tracking of time in specific operations such as (i) eggs when laid in semi solid form should be collected within 1 hour Skill gaps Inadequate ability to understand standard operating procedures which includes knowledge of what to do / what not to do.
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Level / Description
Skills required time to avoid any mixing of impurities, (ii) the time of opening /closing of purdah9, (iii) providing feed at appropriate timings, etc. Ability to undertake rearing of DOC and continuously monitor supplies, for example, special care has to be given to the details such as provision of feed/ water in the shed Ability to understand and execute the hygiene requirements such as cleaning of cell of pickings after alternate days, fumigation of laid eggs and their transfer in controlled atmosphere. Ability to carry out basic counting for counting the birds every day.
Skill gaps
Worker at Breeder farm
Ability to examine the health of birds when they are brought in Ability to monitor timings since birds at this stage are more sensitive to the quality of feed, the water availability, etc. Ability to maintain hygienic conditions
Inadequate consistency in operations due to inadequate understanding of immediate or long term impacts Tendency to change jobs frequently, leading to a high attrition rate and consequently lower quality of work and lower productivity
Worker at grand parent farm
Ability to communicate medical problems to supervisors who can arrange for collection of blood sample and further check ups for birds Ability to administer medicine
Inadequate technical knowledge for primary medication in case of disease/infection Inadequate awareness of preventive care techniques Inadequate adherence to time for operations such as providing feed, lifting
A veil that controls the light entering into a birds cage, which influences eating habits Page 40 of 71
Level / Description
Skills required
Skill gaps purdah, and other such operational jobs
Supervisory staff (Experienced personnel)
Ability to ensure that water samples are checked for sanitation at proper intervals Ability to lay special emphasis on hygiene in the sheds because this impacts the performance of birds (birds are sensitive to environmental conditions while laying eggs, mating, etc. and the mortality rate is also an outcome of the feed provided and the hygienic conditions maintained) Ability to implement steps to make sure that performance on quality parameters such as bird productivity (feed/weight ratio), bird performance, etc. is high while the mortality rate is low.
Inadequate communication skills while interacting with the team Inadequate understanding of the importance of maintenance of hygiene for improving bird performance (as birds respond positively to a clean conditions at time of hatching)
Veterinary services
Ability to take care of the nutrition needs, medicinal needs, and special medical care needs of critical birds. Communication and training skills for interacting with the workers on the issues like maintenance of environment in cells where birds are kept, the timely execution of feeding schedule of birds
Inadequate verbal communication skills for implementing effective training. Inadequate initiative to execute preventive care methods for better performance of birds
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Level / Description Manager level
Skills required Ability to control the top line / bottom line and supervise the overall operations of a business unit Ability to supervise and maintain the overall quality aspect of operations in all business units Ability to undertake co-ordination with client for operational activities Ability to undertake corrective actions in case of crisis such as sudden increase in mortality rate, emergence of disease in farm etc.
Skill gaps Inadequate ability to effectively handle alarming situations such as sudden increase in mortality rate, sudden decrease in quality or quantity of output.
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2.6. Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment
2.6.1. Value chain in the Fruit and Vegetable Processing Segment
The following figure illustrates the composition of the value chain in the Fruit and Vegetable Processing Segment: Figure 25: Value chain within the Fruit and Vegetable Processing Segment
Output: * Beverages: Juices *Jams, concentrates, squash *Potato wafers or chips *Pulp, slices *Frozen and dehydrated products
Output: *Fresh fruits *Frozen fruits and vegetables *Canned fruits and vegetables
Farm produce
Primary processing
Secondary processing
Distribution
Grading
Sorting
Cutting
Trimming
Mixing respective fruit concentrate / pulp/slice + sugar + other ingredients
Temperature control
Bottling/cap ping wherever applicable
Sterilisation
Cooling, may be washing
Labeling
Source: Primary research, Food and Agriculture Organisation, MOFPI, IMaCS Analysis
The handling of the product before and during processing is very important in the Fruit and Vegetable Processing Segment. Uniform temperature control is enforced at all stages from the storage of the raw product, through the processing stage and finally at the warehousing of the finished product either in storage or on the shelf for maintaining the quality. Various processing levels possible are as below: Minimal Processing: Minimally processed products increase the functionality of a food without changing its fresh-like appearance and properties. This process involves washing, cleaning and chilling followed by peeling, slicing and trimming.
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Primary Processing: The focus is to retain freshness, flavour, texture and appearance of the crop. This is accomplished through efficient harvesting, cleaning, chilling and storage of the product. There is very little change from what is harvested to what the consumer purchases. Cleaning is done to remove foreign particles which tend to enter the produce at farm or in transportation.
Secondary Processing: This encompasses several methodologies such as heat preservation, refrigerated ready to eat, freezing, dehydration, extraction, preserves and fermentation. The most common on-farm heat preservation methods are pasteurisation and blanching. Refrigerated Production, Ready to Eat, Heat and Serve involve cleaning and preparing the food item, packaging appropriately, labelling with storage instructions, dates of expiry.

The following figure illustrates the profile of people employed in the organised sector in the Fruit and Vegetable Processing Segment.
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Figure 26: Profile of people employed in the Fruit and Vegetable Processing Segment
Large size units: MBAs/EngineersGraduates / persons with 7-8 years industry experience Graduates in food technology, diploma holder /Persons with 5-7years industry experience/Short certificate holders with experience Graduates in food technology ,diploma holder /Short certificate holders with experience 10th or 12th pass or people with some experience Senior Management
Procurement
Sales and marketing
Operations manager
Quailty head
Supervisors
Lab technologists
Operators
No educational qualifications / experience qualifications required
Helpers
2.6.3. Skill requirements and skill gaps in the Fruit and Vegetable Processing Segment
The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Fruit and Vegetable Processing Segment. Table 13: Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment Function Operations Level Supervisor Skills required Good reporting/documentation skills so as to be able to report the status of production, challenges faced and recommendations to top level management Excellent communication skills so as to effectively interact with workers on daily targets, production
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Skill gaps Inadequate / restrictive motivational skills Inadequate documentation skills / not conversant with e-reporting / working on computers
Function
Level
Skills required techniques, quality issues, etc. Ability to manage labour issues and keep workmen motivated. Ability to handle crisis and take corrective actions in case of quality issues such as mishandling of goods in plant and output not conforming with requirements
Skill gaps
Floor level
Ability to visually examine fruits / vegetables and separate rotten fruits / vegetables Basic reading/writing skills for understanding the standard operating procedures Ability to be conversant with basic measurements so as to understand customer requirements as given in company documents In the case of manual operations, the ability to appropriately size/dice as well as the ability to make end produce visually appealing is critical Knowledge of procedures, sequence of steps / machines and the ability to adhere to the same at all times Ability to operate machines and set parameters such as temperature, running time of machines specific to process requirement.
Inadequate knowledge of operations resulting in wastage Inadequate ability to undertake dicing / slicing at the entry level Lack of interest and knowledge in tracking the productivity and improve the same over a period of time
Procureme nt
Excellent communication skills to be able to interacts with farmers and conduct training/educate them about the produce handling methods, preprocessing techniques, the demand
Inadequate knowledge and ability to educate farmers on demand, advice on farming and wastage reduction. Inadequate communication
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Function
Level
Skills required driven choice of fruits/ vegetables to be grown etc. for them Ability to coordinate with sales teams and farmers equally well so as to close the communication loop and help attain the required production levels
Skill gaps skills to be able to motivate farmers for better quality and higher productivity
Quality
Ability to conduct visual examinations and identify unacceptable colour / flavour of the fruits procured Ability to undertake chemical analysis and assess PH levels vis-avis the requirement, chemical requirements and biological requirements.
Inadequate ability to apply technical expertise and procedural knowledge in actual work situations, especially at the entry level.
Sales and marketing
Good communication, documentation and coordination skills, especially important for personnel working in companies that have export operations As products in this segment (such as juices, ketchup) differ with ingredient and proportion of mix, it is important to have adequate knowledge of such parameters. Ability to gauge the customers requirement and design different SKUs and innovative packaging for fulfilment of varied customer needs depending on income, consumption level, etc.
Inadequate ability to articulate views Inadequate ability to understand changing customer preferences, and understand demand for new products.
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2.7. Skill Requirements and Skill Gaps in the Sugar Based Food Segment
The major products in the sugar based food segment are Biscuits and Chocolates.
2.7.1. Biscuits Sub-Segment

In the biscuits sub-segment, there are large players such as Britannia, Parle, ITC operating in the market who follow fairly mechanised processes. Besides these players, there is also a large unorganised segment. There are small, family-run bakeries operating in local regions and catering to the daily demands of a locality; some of them expand into chains on a regional or evening some cases at a national level also. Value chain in the Biscuits Sub-segment The following figure illustrates the composition of the value chain in the Biscuits Sub-segment: Figure 27: Value chain within the Biscuits Sub-segment
Flour
Flour Shifter and scale Dough After passing through Dough hopper, it is fed into cut and lay Syrup and scale unit Cooling Oven
Sugar
Grinder and scale
Preparation
HVO
Mixer and scale Scrap
Stacking for packing
The raw material costs in the Biscuits Sub-Segment are high and the market is very competitive. Operating margins are low and thus efficiency of production is very important in this business. The process of biscuit making is highly mechanised in large companies. However, in local bakery shops, all steps from mixing of sugar with flour and other ingredients, preparation of dough, cutting, feeding in oven for baking and post baking handling are performed manually. There are two varieties of biscuits which are produced by two different techniques:
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Sweet variety: Products such as Milk Bikkis, Cream Biscuit, Coconut, Ginger Biscuit, Nice Biscuit, FruitNut Biscuits etc. Semi sweet & fermented variety: Products such as Marie, Thin, Crack Jack, Cream Cracker, Kaju Biscuit (Snax), Fifty-Fifty Biscuits etc.
Profile of people employed The following figure illustrates the profile of people employed in the in the Biscuits Sub-segment. Figure 28: Profile of people employed in the Biscuits Sub-segment
Large size units: MBAs /Post graduates/graduates with experience Smaller size units: Persons with 10 - 15 years industry experience Personnel certified: Graduates with (degree in food technology preferred),Diploma holders+ 7-8 years industry experience Graduates(Science preferred), Personnel with certification /dilpoma courses+ 3-4 years industry experience Procurement Head Production Manager Unit Manager
Quality / Testing
Clerical staff
Food technologists / Analysts
Short term certificate courses/ 10 th-12 th pass with 1-2 years of experience
Machine Operators
Specific machine operators (e.g. oven operators in Biscuit making)
Mechanical / electrical engineers
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Skill requirements and skill gaps The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Biscuits Sub-Segment. Table 14: Skill Requirements and Skill Gaps in the Biscuits Sub-Segment Level Unit Manager Skills required Ability to oversee procurement, operations, dispatch, as well as undertake initiatives for increase in efficiency Ability to propose new investment decisions for the plant or new changes which should be introduced to reap benefits in the long term Ability to manage labour issues, vendor/customer relationship management issues which cannot be handled by supervisors / managers Quality Staff Ability to test the material with respect to specified quality parameters and reject raw material that does not meet quality specifications Ability to ensure that dough is prepared with the correct proportion of raw materials this is critical, since different raw materials from different sources may have different moisture levels Ability to specify the temperature settings for oven depending on the product being manufactured Ability to test the end product for quality of crust and colour after baking Ability to check the quality of packing material and ensure that requirements are met Supervisor Good communication skills (spoken and written) so as to be able to coordinate with personnel within the company and outside the company Ability to supervise daily production activities and streamline processes for increasing efficiency Operator Knowledge of machine related details such as temperature settings, speed at which machine as to Inadequate ability to guide workers on the job by giving suitable inputs and training on aspects related to setting of machines, operations, etc. Inadequate ability to understand and use different Inadequate ability to apply theoretical knowledge while conducting quality tests / checks Skill gaps Inadequate communication skills and inadequate ability to manage the team of personnel working with them
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Level
Skills required be adjusted, total time setting, etc. Knowledge of the basics of weighing / scaling Basic knowledge of measurements such as conversion between millimetres and centimetres Ability to use printing machines this includes skills such as the ability to feed in the MRP, the ability to batch print consignment-wise details in the machine, the ability to ensure that all such details appear in the right place and in right format on the biscuit packet, etc. Ability to understand and follow ISO norms eg. assigning batch number, stocking etc. should be according to the specifications Ability to execute standard specifications relating hygiene while handling raw material input/ work in progress Basic read/write skills and spoken language skills
Skill gaps settings of time, temperature on different machines for different biscuit products Inadequate read / write skills leading to problems in understanding verbal/ written communication about production schedule, specifications, etc.
Oven operators
Specific knowledge of technical aspects such as temperature settings, turbulence settings, etc. and the ability to follow specifications Ability to take special care of burner working and maintenance
Inadequate technical knowledge leading to inefficiency of operations
2.7.2. Chocolate Sub-segment

Coco, which is one of the basic raw materials for chocolate, is imported in India for local chocolate and other allied products manufacturing needs. While the coco from Ghana is of the best quality, it is expensive and is not used in India; companies enjoying economies of scale such as Cadburys use European coco and it is very commonly used in India. The coco from Malaysia is used in local chocolate manufacturing units catering to specialised customer needs.
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Value chain in the Chocolate Sub-segment The following figure illustrates the composition of the value chain in the Chocolate Sub-segment: Figure 29: Value chain within the Chocolate Sub-segment
Coco Bean cleaning, Roasting, Cracking, Refining Spinning to make chocolate paste Preservatives Moulding Freezing Stacking for packing
Conching, Inspection, Tempering
Sugar
Bulk shipments for uses such as in ice cream coatings Skimmed milk
Source: Primary Research, The Chocolate factory website, IMaCS Analysis
Coco, after roasting, is processed in two forms: Powdered form (Coco powder) and Butter form (Coco Butter). These are both mixed to obtain a colourless, odourless mixture which is fed in a spinning machine where coco is rotated at very high speeds at controlled temperature. The paste thus obtained is mixed with other ingredients, after which tempering is performed. This is followed by moulding, freezing and packaging. In chocolate making industry, local players have a capacity around one-tenth the capacity of large players such as Nestle and Cadburys. The customer base they have is very specialised (usually large sweet shops) who contract out the manufacturing and get it branded according to their requirements. Skill requirements and skill gaps The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Chocolate Sub-segment. Table 15: Skill Requirements and Skill Gaps in the Chocolate Sub-segment Level Quality personnel / managers Skills required Ability to take samples of input and reject non-conforming produce Ability to constantly check output to make sure that texture consistency and proportion Skill gaps Inadequate ability to correctly conduct tests for new kind of chocolates
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Level
Skills required mix is maintained.
Skill gaps
Supervisor
Ability to execute hygiene requirements effectively (wearing mask, gloves, etc.) Ability to identify ISO norms, understand the same, assign batch numbers, undertake stocking. according to the specifications Good reading/writing skills for coordinating within the company and outside the company Good team management skills.
Inadequate knowledge of ISO processes and compliance Inadequate supervisory skills and team management skills.
Operator
Knowledge of standard operating procedures such as temperature settings, selection of parts which can be touched and parts which cannot be handled. Knowledge of the sequence of machine usage depending on the flow of raw material or work in progress, as applicable in particular products Understanding of the safety norms Ability to understand specifications of colours, ribbons, etc. to be used while packing for decoration as per client requirement. Ability to make the packed product look aesthetic and attractive Knowledge of the paper to be used to decorate the chocolate with specific patterns in some cases Basic read/write skills and spoken language skills
Ignorance about chocolate as a consumable Inadequate speed of packing in comparison with other countries / automatic methods (productivity related issues) Inadequate read / write skills
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2.8. Skill Requirements and Skill Gaps in the Fish Processing Segment
2.8.1. Value chain in the Fish Processing Segment
The following figure illustrates the composition of the value chain in the Fish Processing Segment: Figure 30: Value chain within the Fish Processing Segment
Chlorinated water
Product is received Sorting and weighing Preparationbutchering, scaling, skinning and evisceration
Inspection and trimming
Product processing pickles etc.
Solid waste, rubbish
Cuttings, skins, bones, viscera, spoiled material, blood
Off specification products trimmings, etc.
Further processingfreezing, canning, bottling (some other wastes)
Either fresh after inspection Or frozen /canned after processing; Packing and dispatch
Source: Primary Research, IMaCS Analysis
Material Reception and Preparation10: Raw materials are received at the fish processing facility from a commercial fishing vessel or fish farm. For some fish species (such as white fish), gutting, cleaning, and head removal can take place at sea on board fishing vessels to maintain optimal quality. During unpacking, fish are subject to quality control (including traceability documentation). Fresh/raw fish is washed and graded to separate any portion of the catch that does not meet standards for quality and uniformity. Frozen fish is
10
Source: IFC publication on EHS guidelines in fish processing Page 54 of 71
thawed before washing and grading. The prepared raw material is then chilled for storage and re-iced. Product Processing: Skinning and cutting is performed to remove the edible parts of the fish and reduce the size to the desired portions. The fish are then transported to cutting tables where evisceration takes place (e.g. the heads, tails, and inedible parts are removed). The offal11 is collected and diverted to the by-product line. At this stage, any valuable by-products (e.g. liver), are collected and sent for separate handling. After evisceration, the cleaned fish products are filleted at the cutting tables and washed. Evisceration generates significant amounts of solid waste, and proper disposal of these wastes are an area of concern from environmental perspective. Product Finalisation: Cut fish and shellfish product is preserved through a variety of processes and may be consumed in the primary form, either raw or cooked. They may also be further processed to produce fish or shellfish-based foods, such as moulded products or prepared dishes. Preservation methods typically used include chilling and freezing, canning, brining and salting, fermenting, drying, and smoking. Fish processing is a largely unorganised industry in India with around 80-90% personnel engaged in small/medium sized units.
2.8.2. Skill requirements and skill gaps in the Fish Processing Segment
The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Fish Processing Segment. Table 16: Skill Requirements and Skill Gaps in the Fish Processing Segment Function Fisher men Skills required Ability to undertake fish breeding and rearing this is a process with several time bound operations such as regular feeding and cleaning Ability to clean the fish , which includes processes such as cleaning, removing internal organs Adequate spoken language skills so as to understand instructions from supervisors Ability to undertake waste disposal in a hygienic manner Skill gaps Inadequate knowledge of processes e.g., fishermen who usually work on removing the internal organs are not aware of correct procedures. Traditional methods which are usually used are unhygienic and do not yield adequate quality results
11
Offal: viscera and trimmings of a butchered animal often considered inedible by humans Page 55 of 71
Function
Skills required
Skill gaps Inadequate knowledge of fish breeding and rearing processes Inadequate sensitivity to environmental issues, thus leading to poor hygienic conditions.
Supervisor
Ability to ensure transport of raw / processed fish in a controlled atmosphere and minimise wastage. This also requires understanding of cold chains/refrigeration Ability to supervise daily operations and monitor performance at all times Ability to communicate with uneducated workers and train them in production procedures, compliance to quality.
Inadequate knowledge of cold chain networks for transport of fish within and outside the country Inadequate technical knowledge about the new machines and the associated aspects of maintenance.
2.9. Skill Requirements and Skill Gaps in the Beverage Segment

2.9.1. Value chain in the Beverage Segment
The following figure illustrates the composition of the value chain in the Beverage Segment: Figure 31: Value chain within the Beverage Segment12
Preparation of simple syrup (sugar and water) Simple syrup+ concentrate Final syrup +carbonated water Bottle sanitation process (on simultaneous lines) Bottling Corking Labeling Placing in crates
Syrup is prepared as a solution of sugar and water stirred well in a mixing machine in a highly controlled setting. Concentrates are then added to the simple syrup in order to prepare the finished
12
Paper Publication: Fuzzy Logic Control of the Syrup Mixing Process in Beverage Production by Philip Babatunde OSOFISAN
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syrup. The composition of the concentrate determines the beverage. The resultant syrup is then diluted with carbonated water and bottled. In case of alcoholic beverages, fruits and/or grains are fermented under controlled atmosphere to yield the beverage. Prior to the bottling of the carbonated/alcoholic beverages, the bottles are subjected to thorough a sanitation processes (soaking, heating, washing, rinsing and drying). After these processes, the beverage is packed into bottles of various volumes. Subsequently, the bottles are corked, labeled, and sorted into crates.

The following figure illustrates the profile of people employed in the in the Beverage Segment. Figure 32: Profile of people employed in the Beverage Segment
Large size units: MBA'sEngineers/Graduates / persons with 7-8 years industry experience Senior Management
Graduates ,diploma holder /Persons with 5-7years industry experience
Procurement
Sales and marketing
Operations manager
Quailty head
Graduates ,diploma holder /Short certificate holders with experience
Supervisors
Lab technologists
10th or 12 th pass or personnel with some experience/diploma holders
Area sales officer
Operators
2.9.3. Skill requirements and skill gaps in the Beverage Segment

The following table presents the skill requirements and gaps across various functions and hierarchical/reporting levels in the Beverage Segment.
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Table 17: Skill Requirements and Skill Gaps in the Beverage Segment Function Operations Level Supervisor skills Good communication skills to understand and communicate the requirements of production process to workers Ability to manage labour-related issues and keep workmen / operators motivated Ability to supervise routine and breakdown maintenance Knowledge of quality standards/ Hazard Analysis and Critical Control Points (HACCP) Operator Basic read/write skills for understanding the standard operating procedures Ability to be conversant with basic measurements so as to understand customer requirements Knowledge of procedures, sequence of steps / machines and the ability to adhere to the same at all times Ability to operate machines and ensure correctness of machine parameters (such as temperature) during processing Quality Ability to undertake chemical analysis and assess the proportion of concentrates, as well as other chemical and biological requirements Knowledge of safety guidelines and requirements under FPO, and as required by ISO processes/HACCP
Skills required Adequate reporting/documentation
Skill gaps Inadequate knowledge of concentrates, proportion, etc. Inadequate people management skills Inadequate knowledge of quality standards/ Hazard Analysis and Critical Control Points (HACCP)
Inadequate knowledge of standard operating procedures leading to mishandling of machines especially at the entry level Inadequate knowledge of hygiene related aspects Inadequate knowledge of compliance to quality.
Inadequate testing skills Inadequate knowledge of requirements under various quality standards/FPO/etc.
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2.10.
Emerging Trends in the Food Processing Sector in India13
2.10.1. Emerging Trends

Untapped consumer markets: Majority of the disposable income of a household is spent on food consumption. Increased economic growth, evolving food-consumption patterns, a higher standard of living due to rising disposable incomes and a trend towards nuclear dual-income families, all present considerable potential for growth in spending on food consumption. Changing lifestyles and increasing consumer awareness, due to increasing proportion of working women and the emergence of nuclear/double income families, especially in urban areas is also changing food consumption patterns. The number of households in the consuming middle class is set to increase during the next couple of years. Further, this would translate to a consuming class of more than 150 million rural households by 2010 - more than half of India's overall estimated middle class by this time. The boost in the consumption levels of rural India would open new and unexplored markets for food processing companies in India.
Increasing foreign investments: There has been significant inflow of Foreign Direct Investment (FDI) into the Food Processing Industry. The FDI in Food Processing Industry in June 2007 stood at $1,282.06 million. Progressive Government policies/measures to encourage the FDI in India are expected to further improve this situation in future.
Product innovation The Indian market is witnessing a revolutionary change and multinational companies are introducing globally known products in the Indian markets. For example, there has also been an increase in both, the number of players in the frozen products segment and the consumption of frozen products due to changing lifestyles. Attempts have been made to produce and market a few frozen products such as individually quick frozen fruit and vegetable products and ready-to- eat foods. Sizeable quantities of meat, poultry and marine products are being exported from the country in frozen form. India has the potential, with its diverse and rich resources, to emerge as the fore-runner in meeting the ever increasing global demand for all types of frozen food products including culinary herbs, prawns, ice-creams and frozen salads and desserts, ethnic food delicacies such as frozen samosas, paranthas etc. The market players have also started focusing on herbal and organic products.
13
Source: Hindu, Times of India, Food and Agriculture Organisatrion, MOFPI inputs, Food 360 Degrees, Fruit and vegetable cluster processing, Fruit and beverage news Page 59 of 71
Infrastructure: In a bit to boost the food sector, the government is working on agri-zones and the concept of mega food parks. About 30 such mega parks are coming up across the country in various cities to attract Foreign Direct Investment (FDI) in the Food Processing sector. MOFPI is seeking to double India's share in the global trade of food produce to about 3% in the next eight years, and the setting up of these food parks is an important initiative in this direction. The Government has also announced a 15-25% capital subsidy scheme for investment by private players to facilitate the construction of rural go-downs, thus increasing the role of PPP in the Food Processing sector. The Government has also been increasing investments in the areas of irrigation, storage and post-harvest infrastructure and connectivity to support the Food Processing sector in India. Private participation is increasing across the various segments of the agri-value chain, and corporate are taking the lead in terms of contract farming initiatives. Contract farming by corporates would not only yield better prices to farmers but also help them access superior farming techniques, better management and risk mitigation methods. The network of cold chain facilities is also being developed. For example, chilling infrastructure for milk, and new modern abattoirs for the meat processing sector are being developed. The Container Corporation (CONCOR) is also setting up a countrywide network of over 14 cold-chain complexes for horticulture in Delhi, Mumbai and Bangalore among other places.
Equipment: The Food Processing sector in India is witnessing a great change as regards equipment. Various new equipment have been introduced or are planned to be introduced in the Indian market by both the international and the national players. For example, US-based Daimler Industry has launched KleenJet, especially for the food processing industry. The machines use high steam temperatures and vacuum extraction to tackle a variety of cleaning tasks. Siegling, a major player in industry has launched Series 6, a new product in the modular belt range, specially designed for particularly hygiene-sensitive areas.. Retail giants such as Reliance Retail, Aditya Birla Retail (ABR), Wal-Mart, Mahindra Retail and Big Bazaar are planning to source world class cold storage containers.
Technology: Large MNCs are tapping into the Organised Retail sector through the cash and carry route. The Indian market is witnessing innovative and technologically advanced products. For example, the Central Rice Research Institute (CRRI) has launched Aghani Bora, which is ready-to-eat rice. There has been a growing demand for machines to pack pre-cooked food (Indian dishes) in restorable pouches. Modified atmospheric and ecofriendly/recyclable packaging is breaking new grounds. It is one of the widely used technologies in the West, which is gaining popularity in India as well. Retort packaging,
Page 60 of 71
laminates and bulk packaging are witnessing growth in the Indian market. For edible oils, PET packaging is becoming popular in Indian Retail Industry because of its convenience to use. Schemes to support the unorganised sector: Various schemes and laws have been put in place to support the unorganized sector. For example, the Dairy Venture Capital Fund (DVCF) scheme aims at generating self-employment and creating infrastructure mainly in the unorganised sector for making improvement in quality and to help in bringing a significant portion of unorganised sector under the ambit of organised sector. During the last few years, Food Processing market in India has witnessed new food laws. Currently there are more than twenty Indian laws relating to food, which are administrated by a number of government ministries and departments. The most important food laws are: Prevention of Food Adulteration Act (PFA) of 1954 and the PFA Rules of 1955, The Fruit Products Order, 1955, The Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rule, 1977, Meat Food Products Order, 1992, Milk and Milk Products Order, 1992, and, The Food Safety and Standards Act, 2006. With emergence of single window clearance system the law complications be reduced which will boost exports and private (FDI and national players) in the food processing sector. Emergence of Organised Retail in India: The market for branded foods across different segments of the industry is undergoing rapid growth in India. Food and Groceries form the biggest category of the retail pie, accounting for 75% of the total. However, this category has the lowest organised retail penetration of 1%, which indicates the present gap and opportunities available for the Organised Retail.
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2.11.
Projected Industry Size and Human Resource Requirements
2.11.1. Projected Industry Size

The Food Processing Industry is expected to grow from Rs. 3,600 billion in 2008 to over Rs. 15,600 billion by 2022, a CAGR of about 11%14. Table 18: Projected size of Food Processing Industry till 2022 Rs. billion Sector Fruit and Vegetable Processing Food Grain Milling Dairy Products Meat and Poultry Processing Fish Processing Bread and bakery Alcoholic beverages Aerated water/soft drinks Total 139 714 101 338 3,622 180 1,137 171 451 5,419 265 2,288 380 693 10,140 343 3,646 645 923 15,638 6.6% 12.4% 14.2% 7.4% 11.0% 1,230 572 369 1,663 881 675 2,613 1,686 1,673 3,532 2,597 3,063 7.8% 11.4% 16.3% 2008 159 2012 259 2018 543 2022 887 CAGR 13.1%
Source: ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis
While the share of Food Grain segment would decline, Meat and Poultry Processing, and Bread and bakery products would gain maximum in the overall processed food market.
14
ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis Page 62 of 71
Figure 33: Changing structure of the Food Processing Industry

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4% 2008 5% 2012 5% 2018 6% 2022 34% 31% 26% 23% 9% 3% 20% 4% 10% 16% 8% 3% 21% 3% 12% 16% 7% 4% 23% 3% 16% 6% 4% 23% Aerated water/soft drinks 2% 20% Alcoholic beverages Bread and bakery Fish Processing 17% Meat and Poultry Processing 17% Dairy Products Food Grain Milling Fruit and Vegetable Processing
Source: ASI, NSSO, MOFPI Vision 2015, and IMaCS analysis
About 67% of the value of output generated originates from the Organised Sector. Accordingly, about 33% of the output of Food Processing is in the Unorganised Sector in 2008. By, 2022, the Organised Sector is expected to account for 80% to 90% of the output.
2.11.2. Projected Human Resource Requirement

For the projected growth in the Food Processing Industry, it is expected that the requirement of human resource would increase from about 8.5 million in 2008 to about 17.8 million in 2022, an incremental human resource requirement of about 9.3 million persons15 till 2022. Table 19: Projected human resource requirement for the Food Processing Industry (in 000 persons) till 2022 Sector 2008 2012 2018 2022 Incremental (in 000 persons) Fruit and Vegetable Processing 140 183 273 357 216
15
ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis Page 63 of 71
Sector
2008
2012
2018
2022
Incremental (in 000 persons)
Food Grain Milling Dairy Products Meat and Poultry Processing Fish Processing Bread and bakery Alcoholic beverages Aerated water/soft drinks Total
2,427 1,126 658 216 3,420 390 153 8,531
2,618 1,385 961 223 4,348 528 163 10,409
2,932 1,887 1,697 234 6,235 834 178 14,271
3,162 2,320 2,479 242 7,928 1,131 190 17,808
735 1,194 1,821 25 4,508 741 36 9,278
Source: ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis
It is expected that Organised Sector would contribute to about 20% to 25% of employment, while a large portion of the employment would be generated in the Unorganised Sector in the Food Processing industry. A large portion of the incremental requirement would be in the Bread and Bakery sector, followed by Meat and Poultry Processing and Diary Products. The function-wise requirement for human resource is presented in the table below. Table 20: Function-wise requirement of human resource (in 000s) till 2022 Function Incremental human resource requirement (000 persons) 928 1,856 5,103 93 186 1,113 9,278
Procurement Testing and Quality Production R&D Storage Others (sales and other support functions) Total
Source: IMaCS analysis
The major centres in India where this employment generation would take place are Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Kerala, Maharashtra, and Karnataka.
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Figure 34: Share of various states in employment in the Food Processing Industry
Others, 8.3% West Bengal, 4.8% Andhra Pradesh, 14.1%
Assam, 4.7% Gujarat, 5.9% Haryana, 3.3% Karnataka, 6.0%
Uttar Pradesh, 12.0% Tamil Nadu, 11.2%
Punjab, 7.7% Maharashtra, 7.8%
Kerala, 11.9% Madhya Pradesh, 2.3%
Source: ASI and IMaCS analysis
2.11.3. Available supply of human resource and demand-supply gap

As per the study on Assessment of Requirement of Food Technologists, Managers and Entrepreneurs for the Food Processing Industries conducted by the Institute of Applied Manpower Research (IAMR), the following table is indicative of the capacity available determining the supply of skilled human resource. Table 21: Available Skilled Human Resource Supply in Food Processing on an Annual Basis Category Post Graduates (PG) in Food Technology Graduates in Food Science/Technology Graduates in Food Science and Quality Control Diploma Certificate (ITI/ITC) Short-term courses Total
Processing Industries, IAMR
10th Plan Period 1,000 900 600 600 2,500 6,400 12,000
2008 to 2014 1,700 1,530 1,020 1,020 4,250 10,880 20,400
Source: Assessment of Requirement of Food Technologists, Managers and Entrepreneurs for the Food
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While, the overall requirement for skilled human resource in the Food Processing sector is much larger, we have considered the organised sector to illustrate the demand-supply gap. The following table presents the demand for skilled human resource across different educational qualification for the organised sector alone. Table 22: Annual Demand for Skilled Human Resource in Organised Sector in Food Processing Industry Category Required Annual Demand Food Technologists PG Food Technologists Diploma ITI/ITC Short-term course trained personnel with education below 10th/12th standard Total
2,384 5,363 4,768 4,768 95,351 112,633
While there are gaps in terms of excess of demand over supply in the organised sector at all levels, the gap is maximum when considering the demand for those trained by short-term courses with low educational qualification (below 10th/12th standard) where there is a required demand for about 1 lakh trained persons annually against a supply of over 10,000 persons. This requirement will increase to over 5.3 lakh if the unorganised sector is also taken into account. The following table details the incremental human resource requirement for those trained by modular/short-term training programmes across different segments in the Food Processing Industry till 2022. This table also specifically mentions the demand in the organised sector. Table 23: Incremental human resource requirement for persons trained through shortterm/modular training initiatives in Food Processing Industry till 2022 (in 000s) Sector Fruit and Vegetable Processing Food Grain Milling Dairy Products Meat and Poultry Processing Fish Processing Total demand 173 588 955 1,457 20 Demand in organised sector 31 106 172 262 4
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Sector Bread and bakery Alcoholic beverages Aerated water/soft drinks Total
Total demand 3,607 593 29 7,422
Demand in organised sector 649 107 5 1,335
The following table details the incremental human resource requirement for those trained by modular/short-term training programmes across different segments in the Food Processing Industry on an annual basis (i.e., annual requirement). This table also specifically mentions the demand in the organised sector. Table 24: Incremental human resource requirement for persons trained through shortterm/modular training initiatives in Food Processing Industry Annual Requirement (in 000s) Sector Fruit and Vegetable Processing Food Grain Milling Dairy Products Meat and Poultry Processing Fish Processing Bread and bakery Alcoholic beverages Aerated water/soft drinks Total
Total demand 12 42 68 104 1 258 42 2 530
Demand in organised sector 2 8 12 19 0 46 8 0 95
As mentioned earlier, while the annual demand for such persons trained through short-term/vocational programmes is about 5.3 lakh in the Food Processing Industry, it should be noted that about 1 lakh is the requirement in the organised sector in itself.
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2.12.
Skill Pyramid
The profile of human resource in the Food Processing Industry can be viewed in the form of the Skill Pyramid. Figure 35: Skill Pyramid for the Food Processing Industry
1%-2%
Skill Level 4 (skills which are highly specialised involving research and design) Skill Level 3 (skills which require long drawn preparation as demonstrated by acquisition of degrees, and involve highly technical or commercial operations) Skill Level 2 (skills which require technical training inputs, knowledge of complex operations and machinery, skills of supervision) Skill Level 1 (skills which can be acquired with a short/modular and focussed intervention and thereby enhancing employability of those with minimal education)
8%-9%
9%-10%
80% to 81%
It is to be noted that a large proportion of the workforce falls in the lower portion of the pyramid which would be the source of employment generation in a large scale.
2.13.
Possible focus areas for Skill Building
While the earlier sections indicate the need for additional capacity and skill building at all levels, such as Food Technologists, Quality Control, Techno-Managerial, etc., a vast majority of the requirement would arise from the need to build skills at the lower portion of the workforce operators/workers/packaging and assembly line workers. The following table denotes sector-specific requirements where skill building should be concentrated through short-term/modular/vocational courses.
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Table 25: Possible focus areas for Skill Building Segment in Food Processing Industry Food Grain Milling Industry Bakery-related Diary Products Meat and Poultry Processing Fish Processing Fruit and Vegetables and Edible Oils
Areas for Skill Building Operation of power machine used for milling (knowledge of speed of operation, feeding of input, collecting output) Handling of output while packing Packing of gunny bag (stitching, labelling) Roasting/swelling to make breakfast foods Mixing Preparing flour and dough making for bread, biscuits, cakes etc. Making of Pappads, masala, etc. Packaging and labelling Handling of milk after mulching Cold storage and transportation Manufacture of ice-creams and sweets Slaughtering Safe disposal of waste Usage of by-products Preservation techniques drying/radiation Manufacturing of fish meal Processing in semi-cooked and RTE forms Correct methods of sun-drying, or methods of artificial/ radiation preservation Mixing in right proportions Preparation of concentrates, juices, squash Edible oil manufacture Preparation of sauces, jelly, marmalades.
In addition to the above, the following are generic skills should also be the focus for skill building in the Food Processing sector: Packaging (in Cans, Poly-packs) Labelling Working in hygienic conditions Operation of food processing equipment
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Good Manufacturing Practices Compliance to quality and safety Compliance to ISO, FAO, HACCP Basic maintenance of equipment Soft skills ability to read simple manuals, standard procedures, communicate with supervisors and team, basic behavioural skills (timeliness, etc.).
The above are various areas where skill development initiatives can focus to cater to the large demand that exists in this sector.
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This report has been prepared by ICRA Management Consulting Services Limited (IMaCS). IMaCS is a multi-line management and development consulting firm headquartered in India. It has an established track record of over 15 years in consulting across various sectors and countries. IMaCS has completed over 950 consulting assignments and has worked in over 30 countries across the globe. Through the process of carrying out several assignments over the last decade and half, IMaCS has accumulated considerable analytical and consulting expertise, backed by the following capabilities: Deep understanding of policy formulation. Extensive and organised database on several sectors. Knowledge of key factors of success in different projects and programmes. Ability to research emerging trends in the economy, as well as in specific sectors. Insight into different programmes and organisational processes. Ability to carry out economic analysis, build quantitative and financial models to project future performance and identify imperatives. Ability to identify the various types of risks and suggest appropriate strategies to mitigate the same.
The Education and Skills practice at IMaCS focusses on identifying skill gaps, mapping future skill requirements, and formulating strategies to address them. Our service offerings encompass diagnosis, design and implementation of education and skill development interventions for government and private sector.
R. Raghuttama Rao Managing Director IMaCS 4th floor, Electric Mansion Appasaheb Marathe Marg, Prabhadevi Mumbai 400 025 Tel: 91 22 3047 0047, Fax: 91 22 3047 0081 Email: raghuttama.rao@imacs.in
M. Sairam Head Process Consulting IMaCS 5th floor, Karumuttu Centre 634, Anna Salai, Nandanam, Chennai 600 035 Tel: 91 44 2434 0043, Fax: 91 44 2434 3663 Email: sairam.m@imacs.in
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National Skill Development Corporation D-4, Clarion Collection, (Qutab Hotel) Shaheed Jeet Singh Marg New Delhi 11 0 016 Tel : 011 46 56 0414 Fax : 011 4656 0417 Email : nsdc@nsdcindia.org
www.nsdcindia.org

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Disclaimer for the Skill Gap Report: NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare

Human Resource and Skill Requirements in the Food Processing Sector

Human Resource and Skill Requirements in the Food Processing Sector

Human Resource and Skill Requirements in the Food Processing Sector

Human Resource and Skill Requirements in the Food Processing Sector

Human Resource and Skill Requirements in the Food Processing Sector

1.2. Global Food Processing Industry

Human Resource and Skill Requirements in the Food Processing Sector

1.3. Overview of Indias Food Processing Industry

Source: CSO and IMaCS analysis

Human Resource and Skill Requirements in the Food Processing Sector

Figure 4: Major Segments in the Food Processing Industry

Alcoholic beverages 3% Bread and bakery 20%

Aerated water/soft drinks 9%

Food Grain Milling 34%

Fish Processing 4% Meat and Poultry Processing 10%

Dairy Products 16%

Source: Annual Survey of Industry (ASI), MOFPI and IMaCS analysis;

Milk and Diary

Fruits and Vegetables 0%

2% 5% 10% 15% 20% 25% 30% 35% 40%

Source: MOFPI and IMaCS analysis

Human Resource and Skill Requirements in the Food Processing Sector

Source: APEDA and IMaCS analysis

Figure 7: Major food processing centres in India

Human Resource and Skill Requirements in the Food Processing Sector

Others, 16.4% West Bengal, 3.7% Uttar Pradesh, 12.0 %

Andhra Pradesh, 13.4 %

Karnataka, 5.5 % Madhya Pradesh, 6.5% Maharashtra, 14.1%

Tamil Nadu, 6.9% Rajasthan, 3.1 % Punjab, 5.7%

Source: ASI and IMaCS analysis

1.4. Fruits and Vegetables

Human Resource and Skill Requirements in the Food Processing Sector

Source: FICCI Knowledge Paper on Processed Food and Agribusiness

Human Resource and Skill Requirements in the Food Processing Sector

Source: Rabo India Finance Limited

Human Resource and Skill Requirements in the Food Processing Sector

1.6. Edible Oils

1.7. Grain-based products

1.8. Growth segments

squashes, Highest growth of 17%

Assumptions are detailed in the section on Demand Drivers Page 13 of 71

Human Resource and Skill Requirements in the Food Processing Sector

curd and products,

ghee, milk powder Yoghurt and sour milk are

Meat and 50 Poultry

meat, Poultry meat

Allana, Al-kabeer, MAFCO

Beverages Alcoholic and Malted

Wine, beer, Indian United Made Liquor Foreign

Source: FICCI Knowledge Paper on Processed Food and Agribusiness Page 14 of 71

Sourc ce: IMaCS an nalysis

Dem mand Dri ivers

Human Resource and Skill Requirements in the Food Processing Sector

Figure 13: Changing profile of Indias household income

Annual Income (Rs.)

Consumers (45000 to 215000)

Source: NCAER and IMaCS analysis

Human Resource and Skill Requirements in the Food Processing Sector

Key Success Factors and Risk Factors

Human Resource and Skill Requirements in the Food Processing Sector

Source: Various secondary sources, industry updates, and IMaCS analysis

Outlook for the Food Processing Industry5

Sou urce: Primary y Research and d IMaCS Anal lysis