Food-Processing and Related Industries PDF

MARCH
Food Processing 2013
For updated information, please visit www.ibef.org 1

MARCH
Contents
 Advantage India
 Market overview and trends
 Growth drivers
 Success stories: Operation Flood, Amul
 Opportunities
 Useful information
For updated information, please visit www.ibef.org
2
MARCH
Advantage India
2020E
Strong demand growth Food processing hub
Domestic
• Demand growth for processed food • India benefits from a large food
has been rising with growing agriculture sector, abundant spending:
disposable income, urbanisation, a livestock, and cost
young population and nuclear families competitiveness USD318
billion
• Household consumption is set to • Investment opportunities will
double by 2020 arise in agriculture, food
infrastructure, and contract
farming
Advantage
India
Increasing investments Policy support
• Sops to private sector participation;
• Government expects USD21.9 billion 100 per cent FDI under automatic
of investments in food processing route
infrastructure by 2015
• Agri Export Zones have been set up;
under the government’s Vision 2015
• Investments, including FDI, will rise plan, mega food parks to be
2009 with strengthening demand and established
supply fundamentals • Approval of National Mission on Food
Domestic Processing
food
spending:
USD181 billion Notes: 2020E - Estimate for 2020; estimates are from
Flavours of Incredible India (Ernst & Young, 2009)
FDI - Foreign Direct Investment
For updated information, please visit www.ibef.org ADVANTAGE INDIA 3
MARCH
Contents
 Advantage India
 Growth drivers
 Opportunities
4
MARCH
The food processing sector comprises

six major segments
Fruits and vegetables India is the world’s second largest producer of fruits and
vegetables
Milk and milk products India is the largest producer of milk in the world
India was the largest producer of buffalo meat (1.4 MT) and the
Meat and poultry
Food second largest producer of goat meat (0.5 MT) in FY10
processing
Marine products India is the third largest producer of fish in the world
India is estimated to have produced about 250 million tonnes of

Grain processing
food grains in FY12
Consumer food Among the fastest growing segments in India; it includes -
Source: Indiabusiness.nic.in, Ministry of Agriculture, Meat & Packaged

Poultry Processing Board, FAOSTAT Packaged Aerated Alcoholic
drinking
Note: FY - Indian financial year (April - March) food soft drinks beverages
MT - Million Tonnes water
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS 5
MARCH
Total output of food products and

beverages totalled USD93.1 billion in FY10
→ The food processing industry has emerged as a key Processed food output
component of Indian manufacturing; while the sector’s
100 30%
total output stood at USD93.1 billion in FY10, it
accounted for nearly 7.5 per cent of aggregate gross 80 25%
value added of major industries during that year
20%
60
→ The size of the sector has been growing fast; output 15%
expanded at a CAGR of 16.9 per cent over FY05-10 40
10%
20 5%
Source: Ministry of Food Processing Industries ( MOFPI),
Annual Survey of Industries 2009-10, Aranca Research 0 0%
Notes: CAGR - Compound Annual Growth Rate, FY05 FY06 FY07 FY08 FY09 FY10
Processed food output (USD billion) Growth - right axis
Source: Annual Survey of Industries (ASI) 2009-10,

Aranca Research
MARCH
Strong growth in the sector also evident

from trends in IIP
→ Although figures for output of food products and Annual growth of ‘food products and beverages’
beverages from ASI are not available post FY10, data from IIP (%)
from the Index of Industrial Production (IIP) suggest 20
strengthening growth momentum in ‘food products
and beverages’ in FY11-12 15
10
→ Growth for ‘food products and beverages’ shot up to
14.8 per cent in FY12 from 8.9 per cent in FY11; the 5
sector was the second-fastest growing sub-segment 0
within manufacturing in FY12 and its growth far FY06 FY07 FY08 FY09 FY10 FY11 FY12
outpaced that of the overall manufacturing sector in -5
the fiscal year
-10
Annual growth of Food products & beverages as per IIP

Source: Ministry of Statistics and Programme Implementation Annual growth of overall manufacturing sector as per IIP
(MOSPI), Aranca Research
Notes: ASI - Annual Survey of Industries
IIP - Index of Industrial Production
MARCH
Exports of processed food and related

products has also been rising steadily
→ Exports of processed food and related products* Exports of processed food and related items
stood at USD19.7 billion in FY11, thereby recording an (USD billion)
average annual growth of 14.7 per cent since FY09
→ Exports of APEDA products have grown to USD17.9

billion in FY12 as compared to USD11.5 bllion in FY11
11.5
→ Main export destinations for food products have been
8.3
the Middle East and South East Asia 7.4
6.7 8.2
6.2
* includes APEDA products (processed fruits and vegetables,
animal products, cereals, and other processed food items) and
Non - APEDA products (oil meals, marine products, spices, sugar FY09 FY10 FY11
and molasses, tea, coffee, etc.)
Export of APEDA products Export of Non APEDA products
Source: Agriculture & Processed food products Export

Development Authority (APEDA,) Aranca Research;
MARCH
Shares in exports of processed food and

related products
→ In FY11, APEDA products had 41.6 per cent share in total exports; non-APEDA products made up the rest
→ Within APEDA products, cereals had the highest share (36 per cent) while for non-APEDA products marine
products dominated with a share of about 21 per cent
Shares in APEDA exports (FY12) Shares in non-APEDA exports (FY11)
1%
Cereals
Marine Products
6% 14%
Animal products 21%
Sugar &
36% Mollasses
Processed Fruits & 11%
Oil Meals
35% Vegetables
Other processed Spices
foods 20%
14%
Fresh Fruits & Tea & Coffee
Vegetables
5% 17% 20%
Floriculture & Others
Seeds
Source: APEDA, Aranca Research Source: APEDA, Aranca Research
MARCH
Large presence of the unorganised

sector … (1/2)
→ The unorganised sector accounts for 42 per cent of Unorganised sector has the largest share in the sector *
India’s food processing industry
→ The sizeable presence of small scale industries points 33%

to the sector’s role in employment generation
Unorganised sector
25% Organised sector
Small scale
industries
42%
Source: Ministry of Food Processing Industries, Aranca Research

* The figures have been taken from MOFPI’s annual report for
FY10 where FY indicates Indian financial year (April - March)
MARCH
Large presence of the unorganised

sector … (2/2)
→ Rice mills account for the largest share of processing Shares in production by value and volume (FY11)
units in the organised sector
→ The government’s focus on infrastructure is likely to 30%

see a sharp rise in the number of cold storage units in 50%
the years ahead
70%
50%
By Volume By Value
Unorganised sector Organised sector
Source: Ministry of Food Processing Industries,

Aranca Research
MARCH
Food processing is a key contributor to

employment generation in India
→ In FY09, the sector employed 48 million people Healthy contribution to employment generation
(FY09)
→ Policymakers have identified the food processing
sector as a key one in encouraging labour movement Direct
from agriculture to manufacturing employment
(13 million)
Food processing
Notes: FY - Indian financial year (April - March)
industry
Indirect
employment
(35 million)

Aranca Research
MARCH
Notable trends in the Indian food

processing sector
• Wide array of products, coupled with increasing global connectivity has led to a
Changing consumer change in the tastes and preference of domestic consumers
tastes • This trend has been bolstered by rising incomes, increasing urbanisation, a
young population, and the emergence of nuclear families
• Liberalisation and growth of organised retail have made the Indian market
Entry of international more attractive for global players
companies • With a large agriculture sector, abundant livestock, and cost competitiveness
India is fast emerging as a sourcing hub of processed food
• Companies have been moving up the value chain; for example, cooperatives are
transitioning from being pure producers of milk to offering a wide range of
Rising business and dairy products
product innovation
• Firms, both domestic and global, have been focussing on product innovation to
cater to domestic tastes, while also introducing international flavours
MARCH
Cooperatives dominate dairy sector;

private players lead others
Fruits, vegetables,
processed grain
Milk and milk products Cooperative societies: Gujarat (GCMMF), Andhra Pradesh (APDDCF), Karnataka (KMF),
Maharashtra (Mahasangh), Punjab (MILKFED), Tamil Nadu (TCMPF), Delhi (NDDB)
Meat, poultry and marine

products
Alcoholic beverages
Consumer food Aerated soft drinks and

packaged drinking water
Packaged food
MARCH
Contents
 Advantage India
 Growth drivers
 Opportunities
15
MARCH
Strong fundamentals and policy support

aiding growth
Rising export
Strong domestic
Growing demand
demand Supply-side advantages Policy support
opportunities
Strong
government
support
Favourable Vision 2015 plan

India’s greater
Rising disposable integration with the climate for targets trebling of
incomes global economy agriculture; wide food processing
variety of crops sector
Growing middle Mega food parks,

Proximity to key Large livestock base
class, Agri Export Zones
export aids dairy and meat
urbanisation, a to attract FDI and
destinations processing sector
young population aid infrastructure
Expected spike in Inland water

Changing global demand as Approval of
bodies, long
lifestyles and food emerging markets National Mission
coastline help
habits grow at a fast pace on Food Processing
marine products
For updated information, please visit www.ibef.org GROWTH DRIVERS 16

MARCH
Income growth is a key driver of growing

domestic demand for processed food
Rising disposable incomes Rising per-capita income in India
• Strong growth in per-capita income has resulted in greater 3,000 30%

demand for food items 25%
2,500
• Per capita income is expected to expand at a CAGR of 8.5 20%
per cent over 2010-2017 to USD2,428 2,000
15%
• There has also been a shift in demand - 1,500
10%
• From carbohydrates to meat products (in line with
1,000
the various phases of economic growth) 5%
• To convenience foods, organic and diet foods 500 0%
0 -5%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011E
2012F
2013F
2014F
2015F
2016F
2017F
Per capita income, USD, LHS Annual growth rate, RHS
Source:, Aranca Research

Note: E - estimate, F - forecast

MARCH
A growing middle class and urbanisation

has also aided growth in the sector
Growing middle class, urbanisation Changing wealth dynamics of India’s population
Seekers: annual
• Strong economic growth since the 1990s has led to - 70
million income
• Rapid urbanisation and a growing middle class 60 households INR200,000 -
Aspirers: 500,000
• Nuclear families and dual income households 50 annual income Strivers: annual
• Coupled with a young population and increasing media INR90,000 - income
40 200,000
penetration, this has led to a surge in demand for packaged INR500,000 -
food, alcoholic and non-alcoholic beverages, snacks, 30
1,000,000
savouries, etc Deprived
20 annual income Globals: annual
<INR90,000 income
10 >INR1,000,000
0
2005 2010 2015 2020 2025
Strivers Seekers Deprived Aspirers Globals
Source: McKinsey Quarterly, Aranca Research

MARCH
Exporters gaining from rising global

demand and location advantages … (1/2)
Rising demand from rest of the word Growth in key regions of the global economy
16
%
• Share of exports in total output of processed food stood at
21.2 per cent in FY11 12
• This has primarily resulted from -

8
• Greater exports to advanced economies
• More demand from emerging/ developing 4
economies as they experience strong growth
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-4
Emerging & developing economies Central & Eastern Europe
Developing Asia Latin America & the Caribbean
Middle East & North Africa
Source: IMF WEO (April 2012), Aranca Research

MARCH
Exporters gaining from rising global

demand and location advantages … (2/2)
Supply-side advantages Top ten destination countries of India’s exports of

processed food and agriculture related products
• Growth in food product exports has been aided by - (in USD million)
• Significant improvements in product and packaging
quality
1,079
• Greater private sector participation 967
• India has a location advantage - it is geographically close to 672

650
key export destinations (Middle East, South East Asia) 591
• United Arab Emirates was the top export destination of 401 464 502
338
processed food and agriculture related products, followed 298
by Saudi Arabia and the United States
Malaysia
UAE
Indonesia
Kuwait
Iran
Saudi Arabia
Bangladesh
United States
Pakistan
Vietnam
Aranca Research

MARCH
India has a distinct competitive

advantage over peers
→ India’s comparative advantage lies in its favourable

Production Global rank
climate, large agriculture sector and livestock base,
(million tonnes) (2011)
long coastline, and inland water resources
Milk (Cow &
107.2 1
Buffalo)
→ India also has an edge in cost of production
compared to its competitors in Asia and the Pulses (nes) 7 1
developed world
Fruits (fresh, nes) 7.6 1
Units Global rank Bananas 29.6 1
Arable land (million hectares) 157.9 2*

Tea 0.96 2
Area under Irrigation (million
63.1 1* Rice (Paddy) 155.7 2
hectares)
Sugarcane 342.3 2
Coast line ('000 kilometers) 7 18#
Vegetables (fresh,
27.5 2
nes)
Cattle (million) 210.2 1**
Wheat 86.8 2
Source: World bank, FAOSTAT, CIA World Fact book, Potatoes 42.3 2
Aranca Research
Notes: * - for the year 2009; # - for the year 2011, ** - for the year 2010

MARCH
Strong policy support gives food

processing sector a boost … (1/2)
• 100 per cent export-oriented units are allowed to sell up to 50 per cent of their
Encouragement to produce in the domestic market
private sector
• Export earnings are exempted from corporate taxes
• Import duty scrapped on capital goods and raw materials for 100 per cent export
- oriented units
Tax incentives and • 100 per cent tax exemption for 5 years followed by 25 per cent tax exemption
other sops for the next 5 years for new agro-processing industries
• Full excise duty exemption for goods that are used in installation of cold storage
facilities
• 100 per cent FDI under automatic route (except for alcohol, beer, and sectors
Relaxed FDI norms reserved for small scale industries)
• Repatriation of capital and profits permitted
Notes: FDI - Foreign Direct Investment

MARCH
Strong policy support gives food

processing sector a boost … (2/2)
• Assigned priority sector for bank credit

• 60 Agri Export Zones (AEZ) have been set up across the country
• According to Vision 2015, formulated by MoFPI, the government plans to
Focus on infrastructure establish 30 mega food parks in public-private partnership mode across the
country; out of these 10 have already been approved in the first phase
• Government has also announced setting up of 15 Mega Food Parks in its FY12
Budget, as part of the third phase of Mega Food Park Scheme
• Investment-linked tax incentive of 100 per cent deduction of capital expenditure

Incentives for
for setting up and operating cold chain facilities (for specified products), and for
development of
setting up and operating warehousing facilities (for storage of agricultural
storage facilities
produce)
Notes: MoFPI - Ministry of food processing industry

MARCH
Agri Export Zones in India Uttaranchal: Basmati rice,

aromatic and medicinal plants
Uttar Pradesh: Basmati rice,

Jammu & Kashmir: Apples, potatoes, mangoes, vegetables
walnuts
Himachal Pradesh: Apples

Assam: Ginger
Punjab: Basmati rice, vegetables
Rajasthan: Coriander, cumin
Gujarat: Mangoes, vegetables,

sesame seeds West Bengal: Pineapple, litchi,
Darjeeling tea, vegetables
Madhya Pradesh: Onions,
Maharashtra
garlic, seed spices, lentils
4
4 West Bengal
Maharashtra: Grapes, grape
Andhra Pradesh wine, mangoes, flowers, onion
4 20
Madhya Pradesh Andhra Pradesh: vegetables,
4 mango pulp, grapes, gherkins
Karnataka
Karnataka: Gherkins, rose,
Uttaranchal onions, flowers, vanilla
5
Uttar Pradesh Tamil Nadu: Flowers, mangoes,
5 8 Tamil Nadu cashew nuts
6
Other States
Source: APEDA, Aranca Research

MARCH
Foreign investments flowing in; rise in

plan expenditure … (1/2)
→ FDI inflows into agriculture and food processing Cumulative FDI inflows (Apr 2000 - Aug 2012)
between April 2000 and August 2012 stood at USD4.7 into the food and agriculture sector
billion 1,600 40%
1,400
→ Demand growth, supply advantages, and policy 1,200 30%
support have been instrumental in attracting FDI
1,000
800 20%
Notes: FDI - Foreign Direct Investment,
600
400 10%
200
0 0%
Vegetable oil
Agri services
Tea and Coffee
Sugar
Agri machinery
Food processing
Fermentation
Cumulative FDI inflow (USD million)
Share of total FDI inflow (%) - right axis
Source: Department of Industrial Policy & Promotion,

Aranca Research

MARCH
Foreign investments flowing in; rise in

plan expenditure … (2/2)
→ The government’s main focus is on supply-chain 12th Five Year Plan (2012-17) outlay shares:
related infrastructure like cold storage, abattoirs and food processing
food parks
1.3% Infrastructure
5.5% development
Notes: GOI - Government of India
11.5%
National Mission on
36.3% Food Processing
Strengthening of
institutions
Food Safety, R&D and

45.4% Promotional Activities
Innovation Fund
Scheme
Plan allocation to the food processing sector:
USD2.9 billion
Source: Ministry of Food Processing Industries (2009-10

Annual Report), Aranca Research

MARCH
Rising Private Equity (PE) funding;

M&A activity stable … (1/2)
PE investments in the food and agriculture totaled USD650 million during 2008-11
Deal value (USD
Company Investor Type of business
million)
Nuziveedu Seeds Blackstone Group Floriculture 80.0
Prakash Snacks Pvt Ltd Sequoia Capital Snacks 30.0
Non-citrous fruit
Amalgamated Beans Coffee Trading Co Darby Asia Investors 25.0
farming
Jan 2010 - Nov 2012
Bush Foods Overseas Pvt Ltd Standard Chartered Pvt Eq Ltd Rice milling 25.0
PE deals
Tirumala Milk Products Carlyle Group Milk production 22.0
General food
The CREMICA Group Motilal Oswal Private Equity Advisors 15.0
products
Nashik Vinters Verlinvest SA Wine and liquor 15.0
Parag Milk & Milk Products Motilal Oswal Private Equity Advisors Dairy products 14.1
Godrej Tea IL&FS Investment Managers Coffee Coffee and tea 13.5
Bakers Circle India Pvt. Ltd Frozen doughs

GEM India Advisors Ltd 2.82
and desserts

MARCH
Rising Private Equity (PE) funding;

M&A activity stable … (2/2)
M&A activity was steady in 2011
Deal value
Target company Acquirer company Type of business
(USD million)
United Spirits Ltd Relay BV Liquor 2,045
GMR Industries Ltd EID Parry Sugar 114.8

Jan 2010 - Nov 2012
Jay Mahesh Sugar Industries NSL Sugars Ltd Sugar 51.99

M&A deals
Eastern Condiments McCormick & Co Seasonings, sauces 35.0
Krishidhan Seeds Summit Partners Agricultural seeds 30.0
Bajaj Hindustan Sugar & Ind Bajaj Hindusthan Sugar, ethanol 14.1
Associated Distilleries Globus Spirits Liquor 14.0
Candico India Keventer Agro Candy items 11.2
Source: Thompson One Banker, Aranca Research

Notes: M&A - Mergers and Acquisitions

MARCH
Sector has been attracting foreign JV

partners for a long time
→ Players like McCormick had identified India as a strategic market way back in the 1990s
→ Global players like Hershey are now keen on entering the increasingly attractive Indian market
→ Established players like Nestle and Coke are extending their global JVs to India
Foreign Players Indian Partner Type of business Stake ratio Year
Dan Cake Phadnis Group Cake and biscuits 66:34 2011
McCormick Kohinoor Foods Ltd Basmati and food products 85:15 2011
McCormick Eastern Condiments Seasonings 26:74 2010
Nestle, Coca Cola -- Beverage 50:50 2010
Hershey Godrej Chocolates 51:49 2007
McCormick AVT Spices 50:50 1994
Source: Thompson ONE Banker, Aranca Research

Note: JV - Joint Venture

MARCH
Contents
 Advantage India
 Growth drivers
 Opportunities
30
MARCH
Operation Flood: India gains self

sufficiency in milk production … (1/2)
→ Operation Flood was initiated in 1970 by the National Dairy Development Board to achieve national self sufficiency
in milk production by creating nationwide milk grids; under Operation Flood -
→ India’s milk production rose to 127.3 million metric tonnes (mmt) in FY12 from 21.2 mmt in FY1969
→ India retained its position as the world’s largest milk producer in 2011-12 with an annual production of 127.3
million metric tonnes
→ Dairy cooperatives offer employment opportunities to about 12 million farm families
Source: National Dairy Development Board, GCMMF

(www.amul.com), Aranca Research
For updated information, please visit www.ibef.org SUCCESS STORIES: OPERATION FLOOD, AMUL 31
MARCH
Operation Flood: India gains self

sufficiency in milk production … (2/2)
PHASE I PHASE II PHASE III

(Jul-1970 to (Oct-1979 to (Jul-1985 to
Mar-1981) Mar-1985) Mar-1996)
Dairy cooperative
13.3 34.5 72.5
societies (‘000)
Members (million) 1.8 3.6 9.3
Milk procurement
(million kg/ day) 2.6 5.8 11.0
Liquid milk marketing

(million litres/ day) 2.9 5.0 10.0
Milk drying capacity

(million tonnes/ day) 261 507.5 842
Source: GCMMF (www.amul.com), Aranca Research
MARCH
The Amul saga: a cooperative

movement leads the way … (1/2)
→ Gujarat Cooperative Milk Marketing Federation GCMMF (Amul) sales (USD billion)
(GCMMF) is the largest food products marketing
3.0
organisation in India
2.4
2.5
→ Set up in 1967, it is India’s largest exporter of dairy 2.0
products and has been accorded ‘trading house’ 2.0
1.7
status
1.5 1.4
1.1
1.0 0.9
0.8
0.5 0.6 0.6 0.6
0.5
0.0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Notes: CAGR - Compound Annual Growth Rate
FY - Indian financial year (April - March)
MARCH
The Amul saga: a cooperative

movement leads the way … (2/2)
→ Main brand: Amul
→ Products: milk (including flavoured), butter, margarine, cheese, curd, desserts, infant food
Facts and Features Notable Awards Authority
Producer members (million) 3.18 Excellent performance in dairy product exports

APEDA
for 11 consecutive years
Village societies 16,117
CIO International IT Excellence Award (2003)
IDG’s CIO
Milk handling capacity (million litres/day) 13.67 for positive business performance through
Magazine
resourceful IT management and best practices
(USA)
Total milk collection (FY12, billion litres) 3.88
International Dairy Federation Marketing

Daily milk collection (FY12, million litres) 10.6 International
Award (2007) for Amul’s pro-biotic ice cream
Dairy
launch
Milk drying capacity (million tonnes/day) 647 Federation
MARCH
Contents
 Advantage India
 Growth drivers
 Opportunities
35
MARCH
Opportunities
Untapped market with strong Potential global outsourcing Supply chain infrastructure and
growth potential hub contract farming
• Fragmented market leads to • Global supermarket majors • Both firms and the
lower processing levels and are looking at India as a government are eager to
value addition major outsourcing hub boost efficiency and access
to markets
• The government plans to • India enjoys favourable
raise value addition to 35 supply-side fundamentals • Investment potential of
per cent by 2015 (from 20 (abundant raw materials USD22 billion in food
per cent in 2005) supply, cost advantages) processing infrastructure;
100 per cent FDI in this area
• PPP modules ideal for the • The government has helped
private sector by investing in AEZs, mega • Firms increasingly taking
food parks, easier credit recourse to contract farming
• Strong demand growth - in order to secure supply
household consumption set
to double by 2020
Notes: PPP - Public Private Partnership,

AEZ - Agri Export Zones
FDI - Foreign Direct Investment
For updated information, please visit www.ibef.org OPPORTUNITIES 36

MARCH
Contents
 Advantage India
 Growth drivers
 Opportunities
37
MARCH
Industry Associations
Agricultural and Processed Food Products Export Development

Authority (APEDA)
NCUI Building 3, Siri Institutional Area,
August Kranti Marg, New Delhi - 110 016
Phone: 91-11-26513204, 26514572, 26534186
Fax: 91-1126526187
E-mail: headq@apeda.com
Marine Products Export Development Authority (MPEDA)

MPEDA House, Panampilly Avenue
PB No 4272, Cochin - 682 036
Phone: 91-484 2311979/2311803
Fax: 91-484-2313361
e-mail: mpeda@vsnl.com, mpeda@mpeda.nic.in
For updated information, please visit www.ibef.org USEFUL INFORMATION 38

MARCH
Glossary
→ AEZ: Agri Exports Zones
→ MFP: Mega Food Parks
→ CAGR: Compound Annual Growth Rate
→ FDI: Foreign Direct Investment
→ MT: Million Tonnes
→ IIP: Index of Industrial Production
→ FY: Indian Financial Year (April to March)
→ So FY12 implies April 2011 to March 2012
→ GOI: Government of India
→ INR: Indian Rupee
→ PPP: It could denote two things (mentioned in the presentation accordingly) -
→ Purchasing Power Parity (used in calculating per-capita GDP)
→ Public Private Partnership (a type of joint venture between the public and private sectors)
→ PE: Private Equity
→ APEDA: Agriculture & Processed food products Export Development Authority
→ GCMMF: Gujarat Cooperative Milk Marketing Federation
→ USD: US Dollar
→ Conversion rate used: USD1= INR48
→ Wherever applicable, numbers have been rounded off to the nearest whole number
For updated information, please visit www.ibef.org USEFUL INFORMATION 39
MARCH
Disclaimer
India Brand Equity Foundation (IBEF) engaged Aranca to presentation to ensure that the information is accurate to
prepare this presentation and the same has been the best of Aranca and IBEF’s knowledge and belief, the
prepared by Aranca in consultation with IBEF. content is not to be construed in any manner whatsoever
as a substitute for professional advice.
All rights reserved. All copyright in this presentation and
related works is solely and exclusively owned by IBEF. Aranca and IBEF neither recommend nor endorse any
The same may not be reproduced, wholly or in part in specific products or services that may have been
any material form (including photocopying or storing it in mentioned in this presentation and nor do they assume
any medium by electronic means and whether or not any liability or responsibility for the outcome of decisions
transiently or incidentally to some other use of this taken as a result of any reliance placed on this
presentation), modified or in any manner communicated presentation.
to any third party except with the written approval of
IBEF. Neither Aranca nor IBEF shall be liable for any direct or
indirect damages that may arise due to any act or
This presentation is for information purposes only. While omission on the part of the user due to any reliance
due care has been taken during the compilation of this placed or guidance taken from any portion of this
presentation.
For updated information, please visit www.ibef.org DISCLAIMER 40

Food-Processing and Related Industries PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Food-Processing and Related Industries PDF

Uploaded by

Copyright:

Available Formats

MARCH

Food Processing 2013

For updated information, please visit www.ibef.org 1

 Market overview and trends

 Success stories: Operation Flood, Amul

For updated information, please visit www.ibef.org

 Market overview and trends

 Success stories: Operation Flood, Amul

For updated information, please visit www.ibef.org

The food processing sector comprises

India is estimated to have produced about 250 million tonnes of

Consumer food Among the fastest growing segments in India; it includes -

Source: Indiabusiness.nic.in, Ministry of Agriculture, Meat & Packaged

Total output of food products and

Processed food output (USD billion) Growth - right axis

Source: Annual Survey of Industries (ASI) 2009-10,

Strong growth in the sector also evident

Annual growth of Food products & beverages as per IIP

Exports of processed food and related

→ Exports of APEDA products have grown to USD17.9

Source: Agriculture & Processed food products Export

Shares in exports of processed food and

Shares in APEDA exports (FY12) Shares in non-APEDA exports (FY11)

Source: APEDA, Aranca Research Source: APEDA, Aranca Research

Large presence of the unorganised

→ The sizeable presence of small scale industries points 33%

25% Organised sector

Source: Ministry of Food Processing Industries, Aranca Research

Large presence of the unorganised

→ The government’s focus on infrastructure is likely to 30%

Unorganised sector Organised sector

Source: Ministry of Food Processing Industries,

Food processing is a key contributor to

Source: Ministry of Food Processing Industries,

Notable trends in the Indian food

Cooperatives dominate dairy sector;

Meat, poultry and marine

Consumer food Aerated soft drinks and

 Market overview and trends

 Success stories: Operation Flood, Amul

For updated information, please visit www.ibef.org

Strong fundamentals and policy support

Favourable Vision 2015 plan

Growing middle Mega food parks,

Expected spike in Inland water

For updated information, please visit www.ibef.org GROWTH DRIVERS 16

Income growth is a key driver of growing

Rising disposable incomes Rising per-capita income in India

• Strong growth in per-capita income has resulted in greater 3,000 30%

Source:, Aranca Research

For updated information, please visit www.ibef.org GROWTH DRIVERS 17

A growing middle class and urbanisation

Growing middle class, urbanisation Changing wealth dynamics of India’s population

Strivers Seekers Deprived Aspirers Globals

Source: McKinsey Quarterly, Aranca Research

For updated information, please visit www.ibef.org GROWTH DRIVERS 18

Exporters gaining from rising global

• This has primarily resulted from -

Source: IMF WEO (April 2012), Aranca Research

For updated information, please visit www.ibef.org GROWTH DRIVERS 19

Exporters gaining from rising global

Supply-side advantages Top ten destination countries of India’s exports of

• India has a location advantage - it is geographically close to 672