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2010

Project Report On INDIAN FOOD INDUSTRY Submitted in partial fulfillment of the requirement for master degree in business administration of UTU.

SUBMITTED TO:-

HOD,MBA
SUBMITTED BY:-

KRITI SHARMA MB10B26 MBA-1

PREFACE
The report gives a detailed information on Indian Food Industry. In this report I have tried my best to cover the whole scenario of food industry in India and companies playing major roles in the Food Industry. Regards Kriti Sharma MBA-1

CONTENT
             Indian Food Industry Important Players Opportunities in the food industry Indian Fast Food Industry growth and its Business Opportunities Retailers associated with imported food Business Opportunities: Dairy Industry Business Opportunity: Dairy Industry Business Opportunity: Pasta Products Business Opportunity: Confectionery Business Opportunity: Wine Industry Food Services Major Players offering Food Services

 What are Fast Moving Consumer Goods (FMCG)?  List of FMCG Companies in India

ACKNOWLEDGEMENT

I am very much thankful to my coordinator Mrs. Raksha painuly who gave me this opportunity to work on this project and guiding me throughout the project. I am also thankful to my all respected teachers and my friends for their support. Thank You All.
KRITI SHARMA MB10B26

INDIAN FOOD INDUSTRY


In the World, India is the second largest producer of food after China. The country has achieved the potential of being the biggest with the food and agricultural sector. Indian Food Industry is considered to be occupying about two thirds of the total Indian retail market. Food and food processing technologies are developing gradually. In addition to that modern skills and equipment have taken place in industries such as Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food, Refrigeration and Thermo Processing. India is an agriculture based country. The country is concentrated in the production of various types of fruits and vegetables which indeed contours the structure of the Indian food industry. Among the sub-sectors of Indian Food Industry, fruits and vegetables industry have achieved the second largest producer of vegetables in the world next to China and accounts for about 15 percent of the world`s production of vegetables. Vegetables are typically grown in India in field conditions. The current production level in the Indian subcontinent is over 71 million MT and the total area under vegetable cultivation is around 6.2 million hectares. Vegetables such as potato, tomato, onion, cabbage and cauliflower report for around 60 percent of the total vegetable production in the country. These fruits and vegetable industries manufacture health food as well as health food supplements are rapidly improving segment of this industry, which is gaining vast popularity amongst the health conscious population of the country. Meat and poultry is one of the fastest growing segments of the agricultural sector in India at present. In this industry, the production of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. India is the fifth largest egg producer and the eighteenth largest producer of broilers in the world. Fisheries also have gained popularity as a major Indian Food Industry. India is the third largest producer of fish in the world. Milk and milk products have also gained popularity. India is the largest producer of milk in the world. In India both the production and consumption of milk and its derivatives are traditionally high in the country. Amul is regarded to be the largest food product business in the country Plantation Industry is among the prominent Indian Food Industry. There are about 9500 spices from medicinal and aromatic plants that are produced in the country. India is the largest producer, consumer and exporter of spices and the major spices being produced include black pepper, cardamom, ginger, garlic, turmeric and chili. In the Indian food industry, the consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods are also on a high rise. They form the most promising sub-sectors of Indian food industry. Beverages are also included in the industries. Besides these, grain processing and Grain-milling has a position. Inspite being one of the major food producers in the world, India is credited for less than 1.5 per cent of international food trade. Furthermore, the Indian food industry sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The Indian food industry has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA.

Indian food
Indian food owes its evolution to umpteenth factors. One of the foremost reasons is Indian culture and its diversity. Food has always been an essential factor to determine a country`s history and culture. The assortment of the scrumptious recipes of Indian food is simply awe inspiring. It is often said that `Variety is the spice of life.` This proverb is ideal to describe Indian food. The populace of the sub continent is as varied as its topography. The North Indians have their own culinary practices while the eating habits of the South Indians differ completely. The East Indians love their non vegetarian foods while the West Indians are renowned for their desserts. This multiculturalism in India has, thus, led to the evolution of different styles of cooking. The history of Indian food dates back to the Harappan civilisation. Several ancient texts discuss the eating habits of the sages. Historical data are also available on the culinary practices of the Indus Valley Civilisation. When one talks about Indian food vegetarian foods top the list. Interestingly the history of Indian vegetarian food dates back to Buddhist era. Vegetables in Indian food are therefore an indispensable part. Besides this the history of Indian food also provides a glimpse to the different regional cuisines. The Indian food industry has grown in leaps and bounds. Indian is a land of connoisseurs of food. People here not only love to eat but they derive immense pleasure in offering food to others. The contemporary ages have seen the emergence food companies like Bharti Enterprises, Dabur, Britannia Industries, Mother Dairy, Hindustan Unilever, Amul, Mahashian Di Hatti, Parle Agro and several others. Besides the food manufacturers the hospitality industry with its ever increasing number of restaurants has also added a boom to the Indian food industry. Indian food is the recipient of international fame because of its unique preparations and who could deny the variety that is rustled up regularly even in the households. The food culture of India not only offers spicy, mouth-watering treats but it also serves some of the most delicious desserts. The popularity of Indian food has indeed popularised the Indian beverages, non alcoholic drinks, can be additive simply for their flavours. Influences On Indian Food is also immense. Whether it is the religious influence on Indian food or the Culinary Influences by Indian invasion, Indian food has witnessed lot of changes. India has been continuously invaded by forces that were diametrically different from its own culture. But the magnanimous sub-continent has accepted them and welcomed their culture, art and food habits. This is one of the reasons why India such a range of dishes. Aryans, Buddhists, Chinese, Parsi, Portuguese, British and, of course, Mughlai cuisines are the major sources of influences on Indian food. The region of India can be divided into East, West, Central, North and South. Amazingly each of these regions has their separate specialities. Indian Regional Cuisines: These cuisines include Indian vegetarian food, Indian sweets, Indian chutney and Indian beverages. Indian pickles and Indian snacks are also part of the regional cuisines.

While the Indian foods are delectable the process of preparing them can be appallingly easy. These Indian State Recipes are also quite healthy. Preparations like idli, dhokla, lentils and others can be easily classified as health foods. During festivities special preparations are made. These Indian festival foods are immensely delicious. One may often wonder about the secret behind such scrumptious Indian food! Well the mystery lies with the Indian spices. A host of spices are used in different dishes to add flavour to the preparations. The various ingredients Of Indian Food further spice up the dishes. A lot of fruits, flowers and leaves, besides the Indian spices, are used even in day to day cooking to make them tasty. Nuts, coconuts, curd, saffron, tamarind and others are some of the oft used ingredients in Indian food preparations. In India one will come across a deft chef in every household. Another interesting fact is that culinary skills in India are not restricted to women. In fact in ancient times the `bawarchi` or cooks in royal houses were primarily men. This tradition of Indian Chefs continues even today. As far as the hospitality industry is concerned several Indian chefs have achieved international recognition. Such assorted range of cuisines and recipes makes India a dream come true for the food epicureans.

Indian Fast Food Industry growth and its important Players.


As per our new research report Indian Fast Food Market Analysis, India is blessed with one of the fastest growing fast food markets in the world. The Indian fast food market is growing at an annual growth rate of 30-35%. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them posting an appreciable growth. Most of the popular fast food chains have chalked out massive plans for expanding their business and presence throughout the country. Moreover, foreign fast food chains are aggressively expanding their presence in the country. For instance, Dominos plan to open 60-65 outlets every year for the next three years (2010-2012), while Yum Brands Inc is also preparing for its massive expansion across the country. It plans to open 1000 fast food outlets by 2015. Although the market has witnessed robust growth in the past couple of years, it remains largely underpenetrated and concentrated in the metropolitan cities. However, there is large room for growth in tier-II cities, tier-III cities which are mostly untapped. Therefore, the future of Indian fast food industry lies in masses that live tier-II and tier-III cities.

Indian Fast Food Market Analysis provides extensive research and objective analysis of the fast expanding fast food market in India. The report has analyzed all the vital industry trends and possible growth areas for future expansion. It also analyses important driving forces in detail which will help clients to understand the market better. Moreover, the report has identified the important players operating in the sector and made a separate section which talks about their business expansion plans in detail. Most importantly, the report also features the forecast on fast food sales important economic parameters. The forecast is based on the correlation between past market growth and growth in base drivers such as growth in middle class, urbanization, cultural shift and lifestyle changes

More than 60% share in consumer spending in Food & Grocery

Business Opportunities Market for the imported food products and fresh fruits currently stands at 660 million p.a. and is growing steadily Retailers associated with imported food

Retailer

No. of Outlets

Locations

% of shelf space to imported food


10% 12 % 5% 4% 40% 3% 7% 25%

Foodworld Nilgiris Vitan ABG -More Nuts n Spices Food Bazaar D-Mart Crossroads

55 27 9 26 5 19 2 4

Majorly in south India Bangalore, Mysore South India Chennai and Bangalore (South India) Bangalore Chennai (South India ) Across India Mumbai NCR- Delhi

Business Opportunities: DairyIndustry

Yoghurt

 

Pascuals (Spain) entered the Indian market 3 years ago and enjoys a monopoly. Opportunity: 3-4 other yoghurt brands in fat free variants & different flavors (mango, peach, strawberry, pineapple, passion fruit flavors).

Cheese   Currently, imported cheese has 5% market share in the overall cheese market. Happy Cow (Austria), Laughing cow (France) and Kraft (Australia) are prominent selling imported brands. Opportunity: Low fat cheese for healthy food category. Soft cheese incorporating fruits and herbs. Popular flavors: Pepper, Paprika, creamy, cheddar.

    Butter: 
 

Dominated by local brands: Amul, Britannia.


Imported Brands: Lebon, Meadow Lee. Opportunity: Low cholesterol, reduced salt / fat butter for healthy food category.

Business Opportunity: Dairy Industry


Domestic Brands Imported Brands Nestle India Ltd., Amul, Godrej, Mother Dairy, Nandani, Britannia, Thackers

Charlies, Happy cow, Pascual, Elle & vire, Swan Blue, Pilgrims Choice, Arla

major Importers

Siganporia Bros, Max Foods Pvt Ltd., Rai and Sons Pvt. Ltd., Fortune Gourmet Specialities Pvt. Ltd., Shirin Foods Limited, Suresh Kumar & Co. (Impex) Pvt. Ltd., Epicure Frozen Foods & beverages Pvt. Ltd., L Comps, Taurus International, India Hut Pvt. Ltd.

Business Opportunity: Pasta Products

Consumption of pasta doubled in past couple of years, more popular amongst vegetarians Pasta imports crossed 3.3million Current market size for imported pasta is 5200 tons with growth rate of 26% p.a. Top two largest selling pasta brands are Australian (125 Mt) and Barilla (250-300 Mt) Total 10 pasta brands are available in the market  Domestic: ITC Sunfeast

   

  

Imported: Loyd Grosssman, San Remo, Barilla, Agnesi and Voiello

Opportunity: Wheat pasta (good health alternative) Major Importers: Labh Group of Companies, Prayag Food International, Arun International, Prakya Group, Shiva International and Sangeeta foods

Business Opportunity:Confectionery

   

Chocolate imports have been increasing steadily ( about 6.35 million) Market is flooded with locally manufactured MNC brands such as Cadbury & Nestle Alpenliebe is the single largest selling sugar confectionery brand in India Domestic brands: Cadbury, Perfetti, Hindustan Unilever Ltd(HUL), ITC Ltd., Nestl India Ltd., Candico , Ravalgaon Sugar Farm Imported brands: Kraft Foods, Lotte, Ferrero, Mars, Lindt, Toblerone, Dagoba Major Importers: Siganporia Bros., Prakhya Group, Rai & Sons Pvt. Ltd., Woodland products, L Comps, S.K. Enterprises, Shell Overseas, Pranav Corporation Opportunity: Fruit based / flavored confectionery Jelly, puddings, fruit gummies & candies

 

Business Opportunity: Wine Industry

India's wine market at 4.25 million, makes up less than 1% of India's 1.06 billion alcohol India's wine market at 4.25 million, makes up less than 1% of India's 1.06 billion alcohol       beverages market. Wine consumption growing @30% p.a. and expected to grow @40%. India consumes ~8 mn bottles of wine annually. Out of which, 1.2 mn are imported. Target market is expected to grow to 100 million people in next 5 yrs. Domestic Brands: Chateau Indulge, CreeGrovers Vineyards, Sula Selections, Chateau D ori, Nine hills, Big Banyan, Zinzi - UB group. Imported Brands: Jasons Creek, Gato Negro, Mateaus Rosea, Bodega Nortan, Rupert & Rothschild, Heidsieck Monopole, Moet & Chandon.

Food Services

 

More than 200 food chains McDonald s remains the leading consumer food service player with a 13% share of total chained consumer foodservices Expected revenues from Indian Hotel and Restaurant industry is > 80 million, an increase of nearly 22% over the previous year Fast food units grew by >20 % in 2006 which is the highest across Asia Growing @ CAGR of 8%

 

Major Players offering Food Services

Major Players
Pizza hut Mc donalds KFC Barista coffee Caf coffee day Baskin31robbins Chawlas Monginis Subway restaurants

No. of Outlets*
137 200 30 206 520 300 80 400 540

Major Players
Mocha coffees Jumboking foods pvt. Minimelts icecream Pizza corner india Haldiram Marketing Yo China Domino's Pizza Nirula's Nathus

No. of Outlets*
20 80 45 36 27 25 220 60 18

Donut king Corn Club

180 5

Costa coffee Star one fast food

45 17

What are Fast Moving Consumer Goods (FMCG)? Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products.

List of FMCG Companies in India

A ADF Foods LtdAgro Dutch Inds. LtdAgro Tech Foods LtdAjanta Soya LtdAmar Remedies LtdAmrit Corp. LtdAnik Industries LtdANS LtdApeejay Tea LtdArcuttipore Tea Company LtdAssam Company India Ltd.AVT Natural Products Ltd B B&A LtdBajaj Hindusthan Ltd.Bajaj Hindusthan Sugar & Inds. LtdBalrampur Chini Mills Ltd.Bambino Agro Inds. LtdBCL Industries & Infrastructures LtDBeeyu Overseas LtdBelapur Industries LtdBio Whitegold Farms LtdBritanniaBritannia Industries Ltd C Camson Bio Technologies LtdCCL Products (India) Ltd.Chaman Lal Setia Exports LtdChordia Food Products LtdColgate-Palmolive (India) Ltd

D Dabur India LtdDarshan Oils LtdDCM Shriram Inds. LtdDFM Foods LtdDhampur Sugar Mills Ltd.Dhampure Specialty Sugars LtdDharani Sugars & Chemicals LtdDHP India Ltd.Dhunseri Tea & Inds. LtdDiana Tea Company LtdDollex Industries Ltd. E Eastern Sugar & Inds. LtdEID-Parry (India) Ltd.Emami LtdEmpee Distilleries LtdEmpee Sugars & Chemicals Ltd.Energy Products (India) Ltd. F Flex Foods LtdFoods & Inns LtdFreshtrop Fruits Ltd G Gayatri Sugars LtdGlaxoSmithKline Consumer Healthcare LtdGMR Industries LtdGodfrey Phillips India LimitedGodrej Consumer Products LimitedGokul Refoils and Solvent LtdGoodricke Group LtdGRM Overseas LtdGujarat Ambuja Exports LtdGujarat Aqua Inds. Ltd H Harrisons Malayalam LtdHatsun Agro Products LtdHenkel India LtdHeritage Foods (India) Ltd.Highland Industries LtdHillock Agro Foods (India) LtdHimalya International LtdHind Industries LtdHindustan Unilever Limited I IB Infotech Enterprises LtdIndage Restaurants and Leisure LtdIndian Extractions LtdIndian Sucrose LtdIndo Biotech Foods LtdITC LimitedIVP Ltd J Jay Shree Tea & Inds. LtdJayant Agro-Organics LtdJeypore Sugar Company Ltd.JK Sugar LtdJoonktollee Tea & Industries LtdJVL Agro Industries Ltd K Kashipur Sugar Mills Ltd.Kesar Enterprises LtdKLRF LtdKohinoor Foods LtdKothari Fermentation & Biochem LtdKothari Products LtdKRBL LtdKSE LtdKwality Dairy (India) Ltd L Ledo Tea Company LtdLongview Tea Company LtdLotte India Corpn. Ltd.Lotus Chocolate Company Ltd M Madhur Industries LtdMadhusudan Industries LtdMahaan Foods LtdMarico LtdMawana Sugars Ltd. [Merged]Mihijam Vanaspati LtdMilkfood LtdModern Dairies LtdMohan Meakin LtdMoneshi Agro Industries LtdMount Everest Mineral Water LtdMuller & Phipps (India) Ltd.Murli Industries Limited N Naraingarh Sugar Mills LtdNatraj Proteins LtdNeelamalai Agro Inds. LtdNEPC Agro Foods LtdNestle India LtdNijjer Agro Foods LtdNirma Ltd

O Orient Beverages LtdOudh Sugar Mills Ltd P Parry Agro Inds. LtdPiccadily Agro Inds. LtdPiccadily Sugar & Allied Inds. LtdPioneer Agro Extracts LtdPonni Sugars (Erode) LtdPoona Dal & Oil Inds. LtdPrime Industries LtdProcter & Gamble Hygiene and Health Care LimitedPrudential Sugar Corpn. Ltd R Radico Khaitan LimitedRajshree Sugars & Chemicals LtdRana Sugars LtdRasoi LtdRasoya Proteins Ltd.Rattan Vanaspati LtdRavalgaon Sugar Farm LtdRei Agro LtdRiga Sugar Company LtdRiverdale Foods LtdRT Exports LtdRTCL LtdRuchi Infrastructure LtdRuchi Soya Inds. Ltd S Saboo Sodium Chloro LtdSakthi Sugars LtdSampre Nutritions LtdSanwaria Agro Oils LtdSBEC Sugar LtdShree Vaani Sugars & Inds. LtdSimbhaoli Sugars LtdSimran Farms LtdSir Shadi Lal Enterprises LtdSita Shree Food Products LtdSKM Egg Products Export (India) LtdSpectrum Foods LtdSrinivasa Hatcheries LtdSunil Agro Foods LtdSuper Bakers (India) Ltd T T&I Global LtdTarai Foods LtdTasty Bite Eatables LtdTata Coffee LtdTata Tea LimitedTemptation Foods LtdTerai Tea Company LtdTezpore Tea Company LtdThiru Arooran Sugars LtdTriveni Engineering & Inds. LtdTyroon Tea Company Ltd U Ugar Sugar Works LtdUmang Dairies LtdUnique Organics LtdUnited Breweries LimitedUnited Spirits LimitedUpper Ganges Sugar & Inds. Ltd V Vadilal Enterprises LtdVenky'S (India) LtdVenus Sugar LtdVijay Solvex LtdVimal Oil & Foods LtdVishnu Sugar Mills LtdVolga Air Technics Ltd. W Warren Tea LtdWeikfield Products Company India Private LimitedWellwin Industry Ltd. Z Zicom Electronic Security Systems Ltd.Zydus Wellness Ltd

Regulatory Mechanism for Food Trade in India

Regulations to be considered before importing a packaged food product to India:  Customs Act   Customs duty and import formality

Prevention of Food Adulteration Act & Rules (PFA)   Specifies standards & quality levels for food articles Prohibits imports of adulterated, misbranded food products

Fruits Products Order (FPO)   Sanitary and hygiene conditions of manufacturing, product standards Maximum limits on preservatives, additives and contaminants

Labeling & Regulatory Act  Information on the label of food products

Bibleography:www.google.com www.wikipedia.com