A Food for thought

With a thought for Food

Mahindra Infrastructure Realty Sector

Agenda(1/7)

A TEAM NAMED DESIRE , IMT

GHAZIABAD

Indian Processed Food Industry : The Growth Story..!!

Milk
Largest Producer
91 Mn T

Fisheries
Marine: 2.7 Mn T
Inland : 3.1 Mn T

Type
food

Cattle / buffaloes
Largest in the world
283 million
F&V
Rank #2
129 Mn T

Food Grains
Rank #2
(218 Mn T)

Tea
Largest Producer
(0.85 Mn T)

%Level
of
process
ing

Milk
Fruit &
Vegetabl
es
Livestoc
k
Fish
Poultry
Eggs

Very low food

processing level
compared to World

35%
2.2%

Only 1.5 % of share of

global trade of
processed food.

20%

Huge wastages, around

35% with value of Rs
50,000 Cr annually.

8%
6%
6%

Consumption of
(USD
100 billion)

Unorganized sector 70% by volume and

Tertiary
food
50%Processed
by value.
91.63

74.7

80
60

Goat & Sheep

182 million

Sugarcane
Rank# 2
(245 Mn T)

Indian processed food

industry - $72bn and
growing at 14%

60.9
41.2

43.8

40
20
0

6.3
0.04
2008

6.4
0.04
2010F

0.06

2015F

Meat & Marine Products

11.2
0.07
2020F

13.94
0.08
2025F

Milk & Milk products

Agri products

High Production, Low

Processing
Levels, Increasing
A TEAM
NAMED DESIRE , IMT
3
GHAZIABAD
Source: Annual Report 2010-11, MOFPI, Land of Opportunitie
Consumption

Indian Processed Food Industry : The other side of Coin..!!

Increasing
Farmers
Suicides

A TEAM NAMED DESIRE , IMT

GHAZIABAD

Agenda(2/7)

A TEAM NAMED DESIRE , IMT

GHAZIABAD

Mega Food Park Scheme : Highlights

Mahindras Realty Arm
MoFPI

MFP Scheme

Mahindra
Mega
Food
Park

SPV

Food Processing Player(s)

Government Agency

PPP
model

Role of SPV

Role of Mahindra

Creation of
Infrastructure Facilities

Procurement of Land

Supply Chain
Management

Sharing management
responsibility as a part
of SPV
A TEAM NAMED DESIRE , IMT
GHAZIABAD

Mega Food Park : Functional Model

Farmer Groups

Self Help Groups

CC CC CC CC

CC CC CC CC

PPC

PPC

Individual farmers

Importer

Exporter

Field

Field
CC CC CC CC Collection Centers

MEGA
FOOD PARK
- CPC

Domestic sales

A TEAM NAMED DESIRE , IMT

GHAZIABAD

PPC

Primary Processing Centers:

Precooling, Grading
Pulping, Sorting, waxing,
packing ,
Temporary storage

Central Processing Center:

Pulping, Aseptic packing,
CA chamber, Cold Store
QC lab, Logistics center,
Processing Units
etc

Domestic
Retail sales

Source: mofpi.nic.in

Agenda(3/7)

A TEAM NAMED DESIRE , IMT

GHAZIABAD

Criteria for comparing states for Food Park Location

Parameters

Maharashtr
a

Andhra
Pradesh

Karnataka

Progressive Food Laws

Government Initiatives

Development of terminal
markets

Entrepreneurship
Development

Penetration of Mahindra
Group

Industry and research

institute links

Favorable Taxation Policies

Labor Environment

Variety of crops available

Other Fiscal incentives

Investment Opportunities

Non Fiscal incentives

58

54

48

OVERALL

A TEAM NAMED DESIRE , IMT

GHAZIABAD

Source: IBEF report 2010, ADB Report 2010

Advantage MAHARASHTRA..!!
Mahindras strong presence in rural
Maharashtra
Single Window Clearance Mechanism

Highest Contribution to Indias GDP

Strong presence across value chain

Proximity to International Markets

Investor Facilitation Cell

Abundant Land bank

Strong Infrastructure

A TEAM NAMED DESIRE , IMT

GHAZIABAD

10

Mahindra Food Park Hub and Spoke Model

Dhule
Jalgaon
Akola
Buldhana
Nashik

Jalna
Aurangabad
Ahmadnagar

Pune

Mega Food Park

Pre Processing Centre

A TEAM NAMED DESIRE , IMT
GHAZIABAD

11

Revenue Model for SPV

RENT / SALE
Land Cost of CPC & PPC

C Facilities in CPC & PPC

O Factory Sheds
S
TBasic Infrastructure

Revenue Model

Factory sheds
Rural Township

MAHINDR
A FOOD
PARK

Warehouses
Wholesale shops
CPC facilities

Rural Township

A TEAM NAMED DESIRE , IMT

GHAZIABAD

R
E
V
E
N
U
E
12

Excel Based Decision Support System to monitor Project IRR

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GHAZIABAD

13

Agenda(4/7)

A TEAM NAMED DESIRE , IMT

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14

Mahindra
Synergies
Alternative Thinking

Energy
Farm
Equipments

Real Estate
Logistics

Agribusiness

Information Technology
Finance and Insurance
Consulting Services

Feedback

Mahindr
Mahindra
Profitable new
ideas
KisanMitra/
a
CSR
Samridhi

Infrastructure
Mahindra
and
Shubhlabh
A TEAM NAMEDTransportatio
DESIRE , IMT
servicesGHAZIABAD n

Technolog
y
assistanc

Social
Entrepreneurshi
15
p

POMEGRANATE VALUE CHAIN Comparison

Margins
Retailer price

11.5

Wastage and
logistics , storage
Wholesale price

Processing,
Distribution & logistic,
storage & wastage
Contractor price
Commission
Transportation
&wastage
Pre- processing
Farm Gate price

6.2

Accepting No Limits

Mahindra Mega
TraditionStandalone Food park food park
al
2.5%
4.85
80
%
78
1.2
1.2
=
75.42
8
6
1.14
59.3
59.3
6
0.3
0.3
56.78
3.0
2.0
0.3
0.6
0.6
2.0
50

50

0.6

47.88

2.3

2.3

2.18

1.5

1.5

1.5

35

35

38

A TEAM NAMED DESIRE , IMT35

GHAZIABAD

8.5
%

16

Feedback Effect Revenue Generation for Mahindra Group

0.69 Crs
0.4 Crs

Satyam
Mahindra
Energy

BRISTLECONE
FARM
EQUIPMENTS

1.2 Crs

Agribusiness

Rural Finance
14.41 Crs

Bus ines s
Generation

Upto

16.7
A TEAM NAMED DESIRE , IMT
GHAZIABAD

Crs

17

Business generation by Mega Food Park for Mahindra Group