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An Introduction to the Sector
India is fervently poised for the Food Revolution This will ensure agricultural diversification and large investments in food processing. The concept of food security has two dimensions – availability of food and access to food. 30% of the food produced in the country is wasted. There is a need to increase the range of foods available to improve overall nutrition. Special foods for patients suffering from hypertension, diabetes gives health benefits. Packaging of food products has become important to ensure safety and hygiene.
it is essential that agricultural research reoriented to address new challenges. Nutritional research and improved cost-effective vaccine programmes .50.A comprehensive view The Indian food market is approximately Rs 2.000 crore ($69. The food processing industry is witnessing a 20% annual growth rate.4 billion) Value-added food products comprise Rs 80. Post-Green Revolution. RNA use. Application of biotechnology. and molecular biology.2 billion).000 crore ($22.
India’s middle class segment continues to hold the key to success of the processed food market in India. . Agro based l00 percent export oriented units allowed sale up to 50 per cent in Domestic tariff area.Target Segment Profile Higher growth during 2005-06 in almost all the products belonging to Food and Beverage segment The overall industry has achieved a growth rate of about 8 % in terms of value during 2004-05 Government’s high priority for development of food processing industry to encourage commercialization and value addition to agricultural produce.
Cadbury. . Britannia. Pillsbury..Continue… Indian food and beverage companies are making a beeline for regional overseas markets like Bangladesh. Pepsi. The price stability throughout the year has contributed to the increase in domestic liquor sales. ITC. Nestle and NDDB. NAFED.g. Dabur. Hindustan Lever. HLL. Middle East The market is seeing players like Heinz. e. Mars. Nepal. Pakistan. Marico. Both public and private players operate in the market. Nestle and Amul. Branded products are preferred in the Edible oil segment as the urban consumers are increasingly becoming health conscious and looking out for low cholesterol cooking medium.
Absence of a strong and dependable cold chain system which is very vital There is a need for a review of the Agricultural Produce and Marketing Act to ensure freedom to farmers Some commodities in one segment are used as inputs in another segment of the food processing industry Excise Duty on all Value Added food products like Nutritional and health foods Ice –creams and Non-alcoholic beverages dispensed by vending machines are exempt from excise duty .Basic Issues & Constraints Lack of adequate infrastructure.
Continue. Packaging material for match sticks is exempted from excise duty. The higher railway freight has pushed up cost of raw materials and inputs such as sugar. FICCI has highlighted some areas of concern impacting the overall Food and Beverage Industry .. edible oil and all these add to cost of production.
The Industry survey India is among the world's major producer of food and produces over 600 million tonnes of food products every year India’s food consumption market is expanding rapidly to attract global food and drink giants India is the second largest producer of rice and wheat and the largest producer of pulses. Indian food processing industry is poised for further growth in view of the liberal policy measures and government’s commitment for reforms and development of food and agroprocessing industries. .
87715 crores have been proposed in various segments of the food and agro-processing industry.. The Government has provided many liberal incentives to encourage the Food Processing industry. The unorganized. Convenient Food and Branded Food are rapidly gaining vast popularity with the changing life styles of the consumers.. health food supplements. . small players account for more than 75% of the industry output in volume terms and 50% in value terms Since liberalization in 1991 till January 2004 proposals for projects of over Rs.continue Health food.
. some large players. Agro Tech (Healthy World). which had been growing with excellent rate of 4050% till 2000 grown by 12% in 2004-05. like Hindustan Lever (with its Annapurna brand) and Godrej Pillsbury (Pillsbury).Segment-wise Analysis BRANDED FLOUR (ATTA) The grain-processing sector is largely un-organized. Brands like "Captain Cook". although there are a few large players in the market. BAKERY INDUSTRY The annual production of bakery products was 50 lakh tones in 2004-05 with estimated value of Rs 69 billion. Nature Fresh and ITC (Aashirvaad) re players of the market Increased competitive activity is spurring market growth The segment.
Parle. Modern Industries Ltd. Biscuit Industry: The major brands of biscuits are – Britannia.. Priya Gold etc The per capita consumption of biscuits in our country is about 1. Bread Industry: The large organized sector players who are prominent in the highand medium-price segments include Britannia.52 kg as compared to more than 12 kg in developed countries . Local manufacturers with numerous local brands cater to populous segment and contribute considerably in the bread segment. Bakeman.continue The organized sector has a market share of 45 per cent and the balance 55 per cent is with the unorganized sector in the baked products..
macaroni and spaghetti is gaining popularity . HLL has entered the ready to eat segment through Indus Valley rice meals in seven flavours ITC ‘s more than 50 packaged branded food products under Kitchens of India and Aashirvaad brands with different varieties of ready to eat/ cooked food is gaining popularity in the market. vermicelli.9 billion in 2004-05.Semi processed/ Cooked/ Ready to Eat The market for semi-processed/cooked and ready to eat foods was around Rs 82. CULINARY PRODUCTS & SNACK FOOD The total production of culinary products and snack food was around Rs 1750 crore in 2004-05 and is growing at a moderate rate of 8 per cent The culinary products including mainly wheat based products comprising of noodles.
continue HLL (Kissan and Knorr range) and Nestle (Maggi) dominate this segment. Pepsico’s Snack Food Division having snack foods plants in Channa (Punjab) and Pune (Maharashtra) .. and going for another in (Sakrail) West Bengal with investment of Rs 75 Crores. FRUIT JUICES / PULP & CONCENTRATES/ SAUCES/ KETCH UPS India is the second largest producer of both fruits and vegetables in the world. The market has immense potentialities provided some infrastructural facilities for efficient transportation and marketing of fruits and vegetables are created. Heinz and Top Ramen are also strong players. .. Frito Lay's India.
West Bengal. The Government controls sugar capacity additions through industrial licensing. Punjab. decides the quantity Inadequate sugar cane availability. Gujarat. Bajaj Hindustan Ltd.Sugar Industry The largest agro-processing industries of the country with an annual turnover of Rs 200 billion. Maharashtra. Andhra Sugars Ltd. Thiru Arooran Sugars Ltd and. bad condition of plant and machinery are responsible for closure of many mills in the country. Andhra Pradesh. . The leading players in Indian sugar industry are Balrampur Chini Mills Ltd. determines the price of the major input sugarcane. Dhampur Sugar Ltd. Indian sugar industry uses sugar cane as the only input The sugar industries have sprung up in states like Uttar Pradesh. uneconomical size.
.. which includes sugar price in Public distribution system and the free sale sugar price.continue Central Government has also provided inland transport subsidy for sugar export. Dual Pricing System is adopted in the Indian sugar industry..
.Edible oil The growth of the Rs. The main issues in the edible oil segment is the rising cost of raw materials. Even small growers and co-operatives having crushing units or solvent extraction units have started branding their products. In Edible oils. Raw material cost account for 70 per cent of sale price. Ahmed Mills. NDDB has emerged as a major player in the sector with its "Dhara" brand of edible oil. Marico Industries (Mumbai). (Mumbai) are the major players. National Dairy Development Board (Anand). ITC Agro-Tech (Secunderabad) . 250 billion edible oil industry in India has been somewhat stagnant at around 5% per annum.
Several Indian brands have made inroads into the foreign markets including British market. Seagram India Ltd are among the familiar names in the alcoholic beverage industry in the country. MC Dowell & Co Ltd (part of the UB Group) Radico Khaitan. has witnessed robust 30% growth over the past few years. Shaw Wallace. The price stability throughout the year has contributed to the increase in domestic liquor sales. . estimated at 5 lakh cases annually.Alcoholic Beverages The alcoholic beverages industry in India is generally divided into two main categories-Industrial Alcohol and Potable Alcohol. United Breweries Ltd. The Indian wine market.
14. 'Bournvita'. which are mainly known as white beverages. 'Boost'. These include brands such as ' Horlicks.Malted Food & Health Beverages The Rs. Malted beverages with nutritional attributes control around 70% of the total market and energy drinks (brown beverages) account for the rest. The malted food drink industry is dominated by few players. 'Milo' and 'Maltova' on the other hand are classified as brown drink.4 billion malted foods market is composed of two segments .brown and white. The consumption pattern of malted beverages differs according to usage patterns across geographic zones . 'Complan' and 'Viva'.
MILK AND DAIRY PRODUCTS India is the largest milk producing country with production of about 92 million tonnes. The milk and dairy products segment is set for up gradation of cold-storage chains for expansion. Nestle. Amul. Leading brands like Amul. The National Dairy Development Board (NDDB) is a major player in the market with its major brand. Mother Dairy and Britannia are in the race to tap the growing market. Efficient production and marketing can bring about more than 200 per cent value addition in the Indian dairy segment. .
Rising standards of living and popularity of convenience foods. .…continue Mother Dairy brand through retail outlets across the country in addition to its own 300 outlets with provision of cold storage and cold chains. the industry is expected to witness strong long-term demand growth potential.
The perishable nature of the product and the fact that India lacks a cold chain distribution network are among the major problems that inhibit market expansion. mints and Lozenges. namely Hard Boiled Candies (HBC). Cadbury India Ltd and Nestle India Ltd. Eclairs. Chewing gums. . the essential ingredient for manufacturing milk chocolates and ice cream mixes in addition to biscuits and confectionery products. which together account for about 90% of the total chocolate market.Confectionary Industry The entire market can be divided into 7 major categories. Bubble gum. The private dairies have raised the prices including the prices of Skimmed Milk Powder (SMP). Toffees. It is dominated by 2 major players.
Tea trading in the domestic market is done in two ways-auction and private selling .Study on TEA Industry Tea has brought cheer to people across the world for over 4500 years. The Industry has achieved a production of 878 million kg in 2005 from 820. West Bengal) and the South (Kerala. Chinese first drank it for its medicinal value.5 million Kg in 2004 with a growth of about 7 percent. India has a vast domestic market. Tea plantations in India are concentrated in the North-East (Upper Assam. and later. as a refreshing beverage. from the third century onwards. Tamil Nadu).
. but also employs more than 10 percent of the state’s work force or around 12 lakh people.…continue Tea imports surged from a mere 7 million kg in 2003 to whopping 30 million kg in 2004. Lower availability of tea in the domestic market may continue in short run. as tea production falls in January seasonally Assam produces around 53 percent of the country's total production.
Tea Cultivation and Production Process Rainfall: More than the total amount.5 to 5. Soil: Tea grows well on high land well drained soils having a good depth. the distribution of rainfall matters a lot for sustained high yield of tea throughout the season. acidic pH in the range 4. the ambient temperature within 13°C and 28-32°C is conducive for growth of tea Day length: Day length influences growth and dormancy in tea bushes. Temperature and RH: Temperature affects tea yield by influencing rate of photosynthesis and controlling growth and dormancy.5 and more than 2% organic matter . In general.
. The process of setting up of Food Parks in various key locations of the country with the involvement of the various state governments and other allied institutions is on. agrobased and food processing industries have been given high priority.5 % The sectors which are projected to achieve excellent growth of 20% and above are –Semi Processed/Cooked Ready to eat (22%). Ice-Cream(20%). Development of rural infrastructure. Edible/Vegetable oil (20%).OPPORTUNITIES AND PROJECTION The Food and Beverage Industry is projected to have overall growth between 8% -8. rural extension services.Wine(22%) .
Thanks for your attention Presented by: Soumya Srivastava Sudhir Ghosh Surbhi Dubey Nitin Pareek Cryste Jan Soumik Guha .
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