INDUSTRY ANALYSIS

FOOD PROCESSING
INDUSTRY

SUBMITTED BY:

Name Roll No. SAP ID

Anish Parhi B009 80011220265
Divya Anand B013 80011220151
Pranjali Amola B028 80011220264
Pulkit Bhatia B033 80011220173
Tanvi Khandwala B045 80011220072
Vishnu Gupta B050 80011220192
Introduction:

Food processing is the transformation of agricultural products into food, or of one form of

food into other forms. Food processing includes many forms of processing foods, from
grinding grain to make raw flour to home cooking to complex industrial methods used to
make convenience foods. Some food processing methods play important roles in
reducing food waste and improving food preservation. The Food Processing market is valued
at USD 544 billion in India. Food Retail market is majorly dominated by Food Grocery
(growing at CAGR 25%) and Food Services (growing at CAGR 15%) segments. The key
sub-segments of the Food Processing industry in India are Dairy, Fruits & Vegetables,
Poultry & Meat processing, Fisheries, Food retail, Grains, Beverages etc.

Based on the overview We have identified 5 companies (Amul, ITC, Kissan, MTR, McCain)
who caters into Food processing industry.

Gap Analysis:
A gap analysis process allows organizations to determine how to best achieve their business
goals. It compares the current state with an ideal state or goals, which highlights
shortcomings and opportunities for improvement. Gap analysis identifies gaps between
the optimized allocation and integration of the inputs (resources), and the current
allocation-level. This reveals areas that can be improved. Gap analysis involves determining,
documenting, and improving the difference between business requirements and current
capabilities.

Amul has emerged as the No.1 dairy brand in India, having an annual sales turnover of Rs
18,150 crore. Its strategy of growth is driven by expansion, innovation, and correct
positioning. The company is now planning its expansion in the south and ready to compete
with local players such as Karnataka’s Nandini, Kerala's Milma and Tamil Nadu's Aavin and
AP’s Heritage Food.

MTR which is owned by Orkala has entered into an agreement to acquire 67.8 per cent of
the shares in Eastern Condiments Private Limited and with this move, Orkla will double its
sales in India. Eastern offers a mix of non-vegetarian and vegetarian food products largely in
the categories of blended and single spices. With this will have a stronger offering to Indian
consumers.

Kissan which is a market leader in Jam has tried its expansion into ketchup and squash
industry and given a strong competition to Real, Tropicana Juice segment.
ITC is now focussing heavily on non-cigarette products and especially into food processing
industry. They introduced new blended spices variants catering to regional tastes and
preferences such as ‘Chicken 65’ & ‘Mutton Chukka Masala’ in Tamil Nadu and ‘Garam
Masala’ in Uttar Pradesh.

McCain McCain Foods Limited is world’s largest and leading manufacturer of French fries,
frozen potato products and other oven-ready frozen food products. Apart from the potato
products the company is now expanding in other corn and cheese products as per local
region requirement & demands.

Gaps identified:

The major gaps noted between the product portfolio of brands ie. Amul, ITC, Kissan, McCain
and MTR are that other than ITC all others focus on a niche segment. ITC on the other hand
focuses more and more on diversifying its product portfolio.

Amul- Highly focused on milk-based products.

ITC- Very diverse product portfolio. The portfolio almost encompasses the entire product
range that the other four companies are providing.

Kissan- Has a very small product portfolio but maintains the quality of those. Kissan jam is
the market leader in the niche segment of jams. The company enjoys a loyal following and
works more towards retaining those customers than experimenting with new products.

MTR- The South Indian food processing giant enjoys a loyal following in the southern
region of India. Mainly focuses on ready to make items.

McCain- Major focus is on the niche segment of frozen ready to make potato-based snacks.
ITC provides both veg and nonveg frozen ready to cook items.

Reasons for Gap:

ITC has a very diverse product portfolio. The main reason being that the company wanted an
image makeover. With the govt taking a strong stance on tobacco products and raising tax on
the same, ITC has gradually begun the process of dissociating itself from tobacco and shifted
focus towards diversifying its portfolio in the food processing sector.
Amul- Amul is completely focused on milk-based products and some products for providing
quality fodder for the livestock. Amul focuses on a niche segment in which they enjoy the
majority share of the market. The major aim of the company was not to make profits but as a
cooperative help farmer have a better standard of living. ITC has started a milk beverage
range i.e., Sunfeast Wonderz milk but is nowhere near to Amul when it comes to the niche
segment of dairy products. Why ITC has not taken up more milk-based products is because
the competition is really high and already multiple companies enjoy a loyal following of
customers all over India. The only product which provides a major differentiation is the
fodder. Amul is mainly run by farmer cooperatives who have good knowledge about rearing
and maintain cattle.

Kissan- Kissan is now a part of HUL Hindustan Unilever Limited whose focus is FMCG.
Kissan since the very beginning has had a very customer base for its jam and is the market
leader in the same. None of the other companies enjoy a market share as high as Kissan when
it comes to jams.

MTR- MTR is one of the most famous brands in the southern region of India and is known
for its ready to cook meals. It has developed a very niche market of packed, ready to cook
foods. Even though ITC also has entered into ready to cook packed food with it’s newly
launched brand Kitchens of India but still has not been able to replace MTR in India. MTR
caters to a very niche segment and doesn’t have a wide array of items when compared to ITC.
The reason MTR hasn’t diversified their product range is cause.

McCain- McCain caters to a very niche segment of ready to cook frozen potato products in
India. ITC has recently entered the market with its brand ITC Master Chef which provides
both veg and nonveg frozen ready to cook goods. Although the product variety that ITC
provides is huge, but McCain enjoys a better market share at the moment. McCain is a
Canada based company but it’s Indian subsidiary completely deals with veg products only.

Following is the product line of each of our companies identified for GAP Analysis:
products food processing companies.xlsx

CONCLUSION:

Looking at the above information we can analyse that out of all the companies ITC has been
expanding its product portfolio to include a more diversified offering. They have been
actively doing market analysis and coming up with new verticals and newer variations to
existing products. Whereas other companies have stayed focused on their niche segments
majorly and have tried to only promote pre-existing products instead of coming up with new
offerings. Most companies are not diversifying their portfolio since their strategy is holding
onto their loyal customers as they are already established companies.