THE FOOD PROCESSING SECTOR IN INDIA

An Industry Profile from McG

- A Demopack of Select Slides -

Madras Consultancy Group, Chennai

 Contents*
• Food Industry in India : An Overview
• Processed Food Industry : Indian Scenario
• Processed Food Industry : Major Sectors
– Fruits & Vegetables
– Fish, Meat & Poultry
– Milk & Dairy Products
– Bakery Products
– Chocolates & Confectionery
– Packaged / Convenience Foods
• Alcoholic Beverages, Soft Drinks & Branded Water
• Profiles of Major Players
• Financials of Major Players
• Government Initiatives & Recent Developments
• Food Regulation & Control

* Note : This demo pack has only a few select slides of the contents
2 McG
 The Indian Food Sector : Introduction

• India is one of the major food producers in the world

• The food sector contributes to about 28 % of India’s GDP

• In terms of world ranking India stands :

– 1st in the production of Cereals, Milk & Livestock population

– 2nd in producing Fruits & Vegetables

– Ranks amongst the top 5 in producing Rice, Wheat,

Groundnuts, Tea, Coffee, Tobacco, Spices, Sugar & Oilseeds

• Total market for food products Rs. 2,500 Bn.

• Of this, processed food Rs. 1,400 Bn.

3 McG
 Fruits & Vegetables Processing :
Capacity & Production (000 tonnes)

2500

2000

1500

1000

500

0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Installed Capacity Production

4 McG
 Fruits & Vegetables Processing -
Introduction
• India is the world’s 2nd largest producer of fruits & vegetables
(next only to China)
• Total cultivated area of fruits & vegetables is around 12 Mn. Hectare
(i.e. 7% of total cultivation area)
• Main fruits produced in India are Mango, Banana, Citrus, Guava & Apple ;
these account for almost 75 – 80% of total fruit production
• The country produces around 140 Mn. tonnes of fruits & vegetables p.a. &
accounts for about 10 % of the global production in fruits & about 13.7 %
of global production in vegetables
• India produces over 60 % of world’s mangoes & 12 % of world’s bananas
• 30 % of fruits & vegetables go waste due to lack of proper processing &
packaging
• Only 2 - 3 % of the produce is processed in India as against Malaysia at -
83 %, Thailand - 72 % & Brazil - 70 %
• No. of fruits & vegetables processing units : 5200

5 McG
 Fruits & Vegetables Processing :
Processing Pattern - Global

Country % Processed*

Malaysia 83

South Africa 80

Philippines 78

Thailand 72

Brazil70

USA 65

India 2-3

* percentage processed out of total production of fruits &

vegetables

6 McG
 Sea Food Processing Units in India

State No. of Units

Kerala 124
Gujarat 56
Andhra Pradesh 55
Tamil Nadu 48
Maharashtra 41
West Bengal 36
Orissa 21

7 McG
 Poultry Meat : Market Size

• The poultry meat processing industry is still in its nascent stage

• Around 97 % of poultry meat in India is consumed in the fresh

form

• Only 3 % or about 23,000 tonnes is processed at present

• Western Hatcheries (part of the Venkateswara Group) were the

first to set up a poultry processing unit in India (1986)

• Top 10 major players contribute for 95 % of total processed

poultry meat market

8 McG
 Milk & Dairy Products : Industry Structure

• State co-operatives & privately owned Indian companies

dominate the liquid milk sector

• India has around 70,000 village dairy co-operatives, 22 co-

operative dairy federations at state level & 170 milk producer
unions at district level

• Infant Milk Food, Milk Powder, Whitener, Condensed Milk, Malted

Milk Food, Butter, Cheese, Ice Cream and Ghee are the major
value added products from the Indian dairy sector

• Gujarat Cooperative Milk Marketing Federation Ltd. (Amul) and

Nestle are the leading players in the value-added segment

9 McG
 Malted Milk Food : Major Players &
Market Share (2001 - 02)

19%

12%

69%

GlaxoSmithKline Consumer Healthcare Cadbury India Others

In 2000, GlaxoSmithKline Beecham acquired Health drink brands

“ Maltova & Viva “ from Jagatjit Industries

10 McG
 Ice Cream : An Overview

• Total Market Value Rs. 10 Bn.

• Contribution from organised sector Rs. 6.5 Bn.

• Growth Rate 18 - 20 %

• Per capita consumption of ice cream in India is around 250 ml.

against 22 litres in the US, 18 litres in Australia, 14 litres in
Sweden & 5 litres in the UK

• This market is dominated by a few large players & a number of

regional players

• There are a sizable number of players in the unorganised sector

11 McG
 Biscuits : Major Players & Market Share

Nutrine Kwality Others

4% 4% 4%

SmithKline
Consumer
8% Britannia
40%

Bakeman's
10%

Parle
30%

Britannia is the market leader in value terms; however, Parle

has higher share in terms of volume

12 McG
 Chocolates : Major Types & Brands

Type Brand

Moulded chocolates Dairy Milk, Truffle, Amul Milk

Chocolate, Nestle Premium, Nestle
Milky Bar, Nestle Classic

Count lines 5 Star, Perk, Kitkat, Picnic, Munch

Panned products Gems (Cadbury), Nutties,

Marbles (Nestle)

13 McG
 Potato Wafers (Crisps) : Market Size

• The market has a few national brands, a large number of regional

brands and a vast unbranded segment
• The market for potato wafer is estimated at around Rs. 26 Bn.
• Of this, branded potato wafer (organized sector) contributes to
around Rs. 7.5 Bn.
• Frito Lays (subsidiary of Pepsi Foods) is the market leader in the
organised potato wafers market
• In the last 4 - 5 years the market for branded wafers has been
growing at 12 - 15 %
• While export market is estimated at around Rs. 14 Mn., import is
almost nil

14 McG
 Beer : An Overview

• Market value of Beer industry is estimated at Rs. 22 Bn. (2002-03)

• Annual consumption of beer 80 Mn. Cases

• Growth rate 8 - 10 % p.a.

• United Breweries (UB) is the market leader of Indian brewery

industry with around 40 % market share
• Based on the content, beer is further classified as :
– Mild / Diet Beer ( 5 - 8 % alcohol)
– Lager Beer ( 8 - 13 % alcohol)
– Strong Beer ( 13 - 14 % alcohol)
– Draught Beer ( fresh keg beer)

15 McG
 Fruit Drink Market : Major Players & Brands
Company Brand  Products 
Parle Agro  Frooti, Appy  Mango, Apple, Lime, Guava, Pineapple
Godrej Foods Jumpin, Real  Mango, Apple, Lime, Guava,
Pineapple
Hindustan Grapy Red Grapes, Foods, Litchi etc.
HP Agri HPMC  Apple
Mohan Meakins Gold Coin Apple juice 
Modern Foods Rasika Mango, Guava
Pepsi Food Slice  Mango 
NAFEED Nafed    Apple, Mango, Guava, pineapple,
Orange
MIDCL * NOGA Pineapple Agro
Coca-Cola Mazaa Mango

* The Maharashtra Inds. Development Corp. Ltd.

16 McG
 Fruit Drink Market : Major Players & Brands
Company Brand  Products 
Parle Agro  Frooti, Appy  Mango, Apple, Lime, Guava, Pineapple
Godrej Foods Jumpin, Real  Mango, Apple, Lime, Guava,
Pineapple
Hindustan Grapy Red Grapes, Foods, Litchi etc.
HP Agri HPMC  Apple
Mohan Meakins Gold Coin Apple juice 
Modern Foods Rasika Mango, Guava
Pepsi Food Slice  Mango 
NAFEED Nafed    Apple, Mango, Guava,
pineapple, Orange
MIDCL NOGA Pineapple Agro
Coca-Cola Mazaa Mango

17 McG
 McG
Madras Consultancy Group
VI - 2, Habib Complex
3, Durgabai Deshmukh Road
R. A. Puram, Chennai 600028, India

Tel : 91 (44) 24939161 / 24936321

Fax : 91 (44) 24934862
email : mcg@vsnl.com
www.indianindustryprofiles.com
www.consultmcg.com

Copyright © MadrasConsultancyGroup2004. All rights reserved

18 McG