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Food processing is the transformation of raw ingredients into food, or of food into other forms.

Food processing typically takes clean, harvested crops or butchered animal products and uses these to produce attractive, marketable and often long shelf-life food products. Similar processes are used to produce animal feed.


Food processing dates back to the prehistoric ages when crude processing incorporated slaughtering, fermenting, sun drying, preserving with salt, and various types of cooking (such as roasting, smoking, steaming, and oven baking). Salt-preservation was especially common for foods that constituted warrior and sailors' diets until the introduction of canning methods. Evidence for the existence of these methods can be found in the writings of the ancient Greek, Chaldean, Egyptian and Roman civilizations as well as archaeological evidence from Europe, North and South America and Asia. These tried and tested processing techniques remained essentially the same until the advent of the industrial revolution. Examples of ready-meals also date back to before the preindustrial revolution, and include dishes such as Cornish pasty and Haggis. Both during ancient times and today in modern society these are considered processed foods. Food processing can provide quick, nutritious meal options for busy families. Modern food processing technology developed in the 19th and 20th centuries was developed in a large part to serve military needs. In 1809 Nicolas Appert invented a hermetic bottling technique that would preserve food for French troops which ultimately contributed to the development of tinning, and subsequently canning by Peter Durand in 1810. Although initially expensive and somewhat hazardous due to the lead used in cans, canned goods would later become a staple around the world. Pasteurization, discovered by Louis Pasteur in 1864, improved the quality of preserved foods and introduced the wine, beer, and milk preservation. A form of pre-made split-pea soup that has become traditional In the 20th century, World War II, the space race and the rising consumer society in developed countries (including the United States) contributed to the growth of food processing with such advances as spray drying, juice concentrates, freeze drying and the introduction of artificial sweeteners, colouring agents, and preservatives such as sodium benzoate. In the late 20th century products such as dried instant soups, reconstituted fruits and juices, and self cooking meals such as MRE food ration were developed. In western Europe and North America, the second half of the 20th century witnessed a rise in the pursuit of convenience. Food processing companies marketed their products especially towards middle-class working wives and mothers. Frozen foods (often credited to Clarence Birdseye) found their success in sales of juice concentrates and "TV

dinners".[1] Processors utilised the perceived value of time to appeal to the postwar population, and this same appeal contributes to the success of convenience foods today.


Size of the Industry

Largest producer of milk in the world -105 million tonnes per annum. India is thlargest in the livestock population about 485 million tonnes per annum. It is second largest producer of fruits & vegetables which accounts for 150 million tonnes per annum.

Geographical distribution

Delhi, Mumbai, Kolkata, Gujarat, Hyderabad, Pune, all the major cities in the country

The Indian food industry sales turnover Output per annum is Rs 140,000 crore annually as at the start of year 2000. Percentage in world market Market Capitalization The value of the Indian food industry has increased from Rs. 3.09 trillion in 1993-94 to Rs. 3.99 trillion in 2000-01. The country's GDP growth rate had increase from 3.5 % in 2002-03 to 9 % in 2006-07

GROWTH OF FOOD PROCSSING INDUSTRIES TILL NOW The growth of food processing industry is directly linked to growth in retail industry. The political mindset also has to undergo a transformation in view retail business as directly benefiting the farmers and providing opportunities in agri-business, according to Subodh Kant Sahai, India Minister for food processing industry. Hitherto unknown to people outside the state, Sultanpur, a village near the city of Vadnagar, Gujarat, shot to national limelight this summer. The nondescript village, with no industrial activity, now hosts India's largest food processing unit, built at an investment of Rs. 170 crore (approx. USD 31 million) and with the objective of making it a successful agro-industry venture by partnering with 10,000 farmers.

Elsewhere in the country, states are drawing plans to set up mega-food parks, reduce wastage in fruit and vegetable production, improve quality and variety of dairy and non-dairy products, among other things. At the same time, the union government is giving final touches to the National Mission on Food Processing (NMFP), which will be rolled out during the 12th Five Year Plan. NMFP also provides financial assistance to states for setting up of Food Processing Training Centers (FPTC). The central government provides financial assistance to State Government Organizations and institutes, NGOs, colleges etc for setting up these training centers.

Touted as India's future growth engine, the food processing industry currently stands at around $135 billion and is expected to grow at a CAGR of 10 per cent to about $200 billion by 2015. The sector currently employs approximately 10 million people directly and with the growth of the industry this figure will rise significantly in the next decade. The industry has, over the last couple of years, grown at almost double the GDP growth rate of India. The packaged foods industry is expected to register even a higher CAGR of around 15-20 per cent, almost doubling up by 2015 to around $30 billion. This segment of food processing sector has seen massive investments by global food and beverage companies like PepsiCo, Nestle, Hindustan Unilever, among others.

The growth expected in India's food processing sector is based on sound fundamentals. On the supply side, India is among the leading producers of wheat, milk, rice, fruits and vegetables and other agro-commodities. The focus is now on improving productivity, reducing losses due to poor storage facilities, strengthening supply chain, improving rural infrastructure and providing quality food to all at affordable prices. On the demand side, there has been a major shift in the food consumption basket of Indians as a result of changing demographics and socioeconomic structure of India's population as well as urbanization and rising disposable incomes. Dairy, poultry products and non-vegetarian packaged food items are increasingly occupying a significant share of food basket of Indians. As organized retail makes inroads into the Indian economy, the food processing sector will get another boost.

To bring India's food processing industry at par with the best in the world and be the preferred choice for processed foods, the Indian government has adopted a positive outlook towards foreign investment in this sector. Under the automatic route, 100 per cent FDI is allowed in the sector, while the country is forging partnerships with

various countries to enhance trade in processed foods and has granted a considerable degree of autonomy to state governments to identify partners to spur growth in food processing industry. For example, France and India have hailed the "strategic importance" of the Asian country's food processing and agricultural sectors. The opportunity for NRIs and PIOs is immense in this sector, as the country is looking at best practices, technology and people who can help develop the sector and build a trained workforce for the rising sector. As the country adopts a decentralized model for developing the food processing industry, partnering with states will be the best way to do business in this sector.


ITC Limited Parle Products Pvt. Ltd. Agro Tech Foods Amul Perfetti India Ltd. Cadbury India Ltd. PepsiCo India Holdings Nestle India Pvt. Ltd. Britannia Industries Ltd. Hindustan Lever Limited Milkfood MTR Foods Limited Godrej Industries Limited Gits Food Products Pvt. Ltd. Dabur India Ltd. Unilever Conagra Foods Nissin Foods Walmart Venky's

Company Name
Nestle GlaxoSmith Con Rei Agro

Last Price
4,663.50 3,668.40 12.07

-19.65 -121.95 0.07

% Change
-0.42 -3.22 0.58

Net Profit
(Rs. cr)

1,067.93 436.76 226.23

Britannia Kohinoor Foods Kwality Dairy KRBL Usher Agro Hatsun Agro Himalaya Inter Umang Dairies ADF Foods Heritage Foods Chaman Lal Seti Vadilal Ind

556.10 28.70 28.80 23.75 47.70 98.65 13.66 35.85 51.30 443.00 32.00 178.80

-7.45 -0.60 -0.30 -0.25 1.20 -0.80 -0.17 -1.15 0.75 -1.35 0.05 4.55

-1.32 -2.05 -1.03 -1.04 2.58 -0.80 -1.23 -3.11 1.48 -0.30 0.16 2.61

186.74 183.25 90.99 71.15 42.33 26.60 17.35 13.83 11.63 9.33 7.70 6.25

INTRODUCTION Surat-based Euro India Fresh Foods Pvt. Ltd. which began its processed food products operations this year expects to garner a turnover of Rs 100 crore in the first year of its inception. The company aims to achieve the target on the back of exports market and brand endorsements. "We have already invested around Rs 10 crore in brand endorsements and will be investing more in near future for the same. Also, we have certain unique products to offer to the overseas markets in the US, Europe and Canada. Hence, we expect to earn a revenue of Rs 100 crore in the first year itself," said Saumik Mitraa, chairman and managing director of Euro India Fresh Foods Pvt. Ltd., which is part of Surat-based diamond manufacturing and real estate development group Sohil Star Group. Mitraa, who was earlier GM Exports in Rasna, said that the company has invested around Rs 50 crore for setting up a processed food manufacturing plant in Surat. Apart from various packaged food like chips, extruded snacks (fried and baked), namkin, cookies, fruit juice and packaged water, Euro India Fresh Foods also manufactures unique corn based baked sweet snacks targeted for export markets.

The initial manufacturing capacity for the various products is currently at around 500 kg per hour for chips, 250 kg per hour extruded baked, 300 kg per hour extruded fried, 10 tonnes per day namkin, 5 tonnes per day, 200,000 bottle per hour for water and juice. "However, we will be expanding the same in near future as the business grows. Initially we are distributing our products in Gujarat and Maharashtra while later we intend to go to South India," Mitraa added. Meanwhile, in next 4-5 years, Euro India Fresh Foods is looking to become a Rs 1,000 crore company.

DIFFERENT DEPARTMENTS 1. Production 2. Quality Control 3. Research and Development 4. Maintenance 5. Accountants 6. Finance 7. Operation and Administration 8. Human Resource 9. Logistic