FOOD INDUSTRY

FOOD
INDUSTRY

NUPUR TEWARI 39117

ARPITA SINGH 39116
INTRODUCTION
• India’s Food Processing industry
ranked 5th in terms of production,
consumption, export & expected
growth.
• It is the largest producer of milk,
pulses, sugarcane and tea in the
world and big producer of wheat,
rice, f & v.
• The Indian food industry is
estimated to be worth over US$
200 billion and is expected to grow
to US$ 310 billion by 2015.
 Continued..
• The Indian food
processing
industry is • India is one of the
estimated at US$ world’s major food
70 billion. It producers but accounts
contributed 6.3 for only 1.7 per cent
per cent to (valued at US$ 7.5
India’s GDP in billion) of world trade
2003 and had a in this sector – this
share of 6 per share is slated to
cent in the total increase to 3 per cent
industrial (US$ 20 billion) by
production. 2015.
•
 RECENT DEVELOPMENTS
• Strategic interventions under 11th
five – year plan :
Food Parks, Abattoirs, Cold chains,
Street Food, Wine Policy-liberalized,
leveraging the agri/horticultural
surpluses, Testing & certification
labs- both public and private.
• Union budget 2010 has decreased
the prices of processed foods.  
 PRESENT STATUS

SOURCE: MOFPI
 FOOD PROCESSING UNITS IN
ORGANISED SECTOR (NUMBERS)

SOURCE: MOFPI
 PARAMETERS OF
COMPETITION
Indian food processors may be divided into the
following main categories:

• Large Indian companies that have their production

base in India or neighboring countries (for tax-saving
purposes)
• Multinational and joint-venture companies that have
their production base in India
• Medium/small domestic food-processing companies
with a local presence
• Small local players in the unorganized sector
 DAIRY INDUSTRY

• India has emerged as the largest milk

producing country in the world with present
level of annual milk production of 94.5 MT.
• Annual growth of 4% during the period
1993-2005.
• Dairy Cooperatives account for 60% share of
processed liquid milk marketed in the India.
 Continued…

• The lead players in processed milk

products in the market are as follows:
Amul, Britannia, and others include Vijaya,
Verka and Vadilal.

• In the category of cheese:

Amul, Britannia Dabur (Le Bon) are the
leading players including others like Verka,
Nandini, Vijaya and Vadilal.
 MEAT INDUSTRY
• The industry is growing at almost 10%.
• India ranks first in world buffalo population.
• India produces an estimated 1.5 million tonnes of
buffalo meat annually, of which 24% is exported.
• Only about 1% of the total meat is converted into value
added products like sausages, ham, bacon, kababs etc.
• Meat exports have been growing at close to 30% per
annum in terms of quantity.
 Continued…
• The growing number of fast food outlets in the country
has had a significant impact on the meat processing
industry.
• Industry demands some immediate measures like
financial assistance for up gradation of export oriented
abattoirs/processing plant.
 CONFECTIONERY INDUSTRY

• The size of the Indian confectionary market is estimated

at Rs.26.0 billion ($600 million).
• The confectionary market has been growing at over 6%
annually over the last 5 years.
• The confectionary market is highly fragmented with
several local players such as Parle’s, Nutrine & Ravalgaon.
• Key foreign companies are Nestle, Cadbury’s, Perfetti,
Lotte, Wrigley, Candico, and Joyco.
BEVERAGE INDUSTRY

•This industry is divided into Non-alcoholic and

alcoholic beverages.
•non-alcoholic beverages are classified into
carbonated drinks, non-carbonated drinks and hot
beverages.
•This segment is estimated at US$ 155 million out of
which fruit juices and fruit-based drinks account for
US$ 60 million.
•India is the largest producer of tea in the world.
 POULTRY INDUSTRY

• Indian Poultry Industry is 5,000 years old.

• India is the 5th largest producer of egg and 9th largest
producer of poultry meat.
• The organised sector of poultry industry is contributing 70%
of the total output and rest 30% is the unorganized sector.
• The broiler industry is well dominated in southern states
with nearly 60-70% total output.
• Presently about 800 hatcheries are operating in India.
 Continued…
• Leading broiler integrators in India
are as follows:
Venkateswara Group (Pune), Suguna
Poultry Farms Ltd (Coimbatore),
Pioneer Poultry Group (Coimbatore),
Godrej Agrovet Ltd (Mumbai), Sky Lark
group (N.India).
• It contributes about Rs 26,000 cr to
the national income. 
 F & V INDUSTRY
• The installed capacity of f & v processing industry has
increased from 1.1 MT in Jan 1993 to 2.1 MT in 2006.
• The processing of f & v is estimated to be around
2.2% of the total production in the country.
• This industry is highly decentralized.
• Consumption of value added fruits and vegetables are
low.
• India’s National Agriculture Policy envisages the
participation of the pvt sector through contract
farming.
 Continued…
• Contract farming in wheat
practiced in MP by HUL and by Pepsi
Foods Ltd in Punjab for tomatoes,
food grains, spices and oilseeds are
some successful examples.

• The five-year 100% tax exemption

was announced by the Government in
the finance year 2005.
Segment Dairy F&V Meat and Fisheries Packaged Beverages Staple
Poultry foods foods
Processing

Growth 15 20 10 20 8 27 85
rate of
the
market

Key Value Raw F&V, Cattle, Marine Noodles/ Fruit-based Sugar,

segment added Fruit Buffalo Fisheries, Vermicelli Drinks and Wheat
milk Pulps, and Poultry Frozen Carbonated Flour and
products Canned Products Drinks Salt
like Butter, Fruits and and
Cheese and Pickles Minced
Ghee Fish
products

Extent of 37 2 1 12 - - -
processin
g

Share of 15 48 5 - 80 77 50
organised
sector
 MAJOR INDIAN PLAYERS
COMPANY NAME PRODUCTS
GODREJ FOODS Ltd. Vegetable oils, fruit juices,
tomato paste, soy beverages

DABUR INDIA Ltd. Fruit juices, cooking paste,

honey

MOTHER DAIRY DHARA Dairy products, ice cream,

canned vegetables, fruit
juices, cooking oils
AMUL Dairy products, ice cream,
chocolate

ITC Branded wheat flour, biscuits,

ready to-eat food,
confectionary
HUL Ice cream, branded wheat
flour, bread, sauces, jams,
jellies

VH GROUP Poultry products

BRITANNIA INDUSTRIES Biscuits, bread, packaged

food

PARLE PRODUCTS Biscuits, candies, toffees

NUTRINE CONFECTIONERY Confectionary, chewing gum

COMPANY
WEIKFIELD PRODUCTS Custard powder, baking
COMPANY powder, jelly crystals,
drinking chocolate, sauces,
soups
RASNA (PIOMA Instant drink, health drink,
INDUSTRIES) soft drink concentrates,
flavors
HALDIRAMS Snack foods
UB GROUP Beer, alcoholic beverages

MARICO INDUSTRIES Vegetable oils, jams

MTR FOODS Ready-to-eat foods, soups,

spices, ice cream mixes,
pickles

PUNJAB MARKFED Canned food, rice,vegetable

oils

VISTA PROCESSED FOODS Frozen chicken and

vegetables

DYNAMIX DAIRY Cheese, whey, other dairy

INDUSTRIES products
MULTINATIONAL/JOINT VENTURE COMPANIES

Company Name Products

PEPSI Soft drinks, potato chips, snack
food,fruit juices
CARGILL Vegetable oils

HEINZ Ketchup, health drinks

KELLOGG`S Breakfast cereals, biscuits

BUNGE Vegetable oil, margarine

NESTLE Coffee, chocolates, confectionary,

instant noodles, milk products,
beverages, health drinks

CADBURY Chocolates, health drinks

COCA COLA Soft Drinks, beverages

AGRO TECH FOODS Branded vegetable oils,

(CONAGRA`S) branded wheat
flour, snack food, popcorn
PILLSBURY Wheat flour, cake mixes

GLAXOSMITH KLINE Health drinks

PERFETTI Chewing gum, candy

WRIGLEY Chewing gum

LOTTE INDIA Confectionary

CORPORATION LTD.
(PARRY`S)
SWOT ANALYSIS
 STRENGTHS
• Cost of production in India is lower by about 40 percent.
• Large number of research institutions such as CFTRI,
CIFT, NDRI, and NRDC.
• Infrastructure development (30 Mega Food Parks)
• Income tax rebate for setting up of new agro-processing
industries
• Cumulative inflow of FDI into the food processing sector
• Growing number of fast food chains.
• The GOI is in the process of enacting a Food Safety and
Standards Bill
 Continued…
• A slow but steady transformation of the retail food
sector in cities.
• India has the second largest arable land in the
world. It has diverse agro-climatic zones.
• Competitive pricing also enables penetration in
the rural markets.
 OPPORTUNITIES
• GOI, in line with its Vision 2015 for the food processing
sector, in its 11th Five Year Plan proposes to give greater
thrust on infrastructure development.
• GOI envisages an investment of Rs. 1 trillion in the
industry over the next five years, mostly from private
sector and financial institution.
• Rising disposable income levels.
• Increasing urbanization and exposure to Western
culture.
 Continued…
•Growing health consciousness among the middle class.
•Growing consumerism.
•Changing age profile.
•Increasing availability of cheap consumer credit.
•India is in the middle of two big markets – the Middle
East and the Far East – and we can help French
companies reach out to these markets.
 WEAKNESSES
• Poor infrastructure still pose a serious challenge to
FDI.
• Heavily bureaucratic investment processes,
government inefficiency, and corruption
have also discouraged foreign investors.
• India is still not holding its laws high for protecting
copyright issues.
• Divergent food habits.
 Continued…
• High tariffs, dated food laws, and
unscientific sanitary and phytosanitary
restrictions.
• Lack of grading and standards, poor
distribution channels, and onerous
government policies.
• Low penetration of processed food in
domestic markets.
• Out of the entire agricultural produce
of India only 1% is converted into value
added products.
• Lacks economies of scale, skilled
manpower.
 THREATS
• FDI and other routes of investments by
MNC’s pose a potential threat to a large
number of Indian players in the coming
years.
• Gradual decrease in no. of farmers
practicing agriculture.
• Religious sentiments for different foods.
THANK YOU !!
????