Food Processings

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Human Resource and Skill
Requirements in the
Food Processing Sector
Study on mapping of human resource skill gaps in
India till 2022
Human Resource and Skill Requirements in the Food Processing Sector
Table of Contents
1. Environment Scanning and Competitiveness of Food Processing Industry ............................ 5
1.1. Introduction ............................................................................................................................. 5
1.2. Global Food Processing Industry ............................................................................................ 5
1.3. Overview of India’s Food Processing Industry ....................................................................... 7
1.4. Fruits and Vegetables ............................................................................................................ 10
1.5. Dairy ..................................................................................................................................... 12
1.6. Edible Oils ............................................................................................................................ 13
1.7. Grain-based products ............................................................................................................ 13
1.8. Growth segments .................................................................................................................. 13
1.9. Value chain in the Food Processing Industry ........................................................................ 15
1.10. Demand Drivers ................................................................................................................ 16
1.11. Key Success Factors and Risk Factors .............................................................................. 18
1.12. Outlook for the Food Processing Industry ........................................................................ 19
2. Human Resource and Skill Requirements in the Food Processing Sector............................. 20
2.1. Current Employment Pattern in the Food Processing Sector in India................................... 20
2.2. Skill Requirements and Skill Gaps in the Dairy Processing Segment .................................. 23
2.3. Skill Requirements and Skill Gaps in the Food Grain Milling Segment .............................. 29
2.4. Skill Requirements and Skill Gaps in the Edible Oil Processing Segment ........................... 33
2.5. Skill Requirements and Skill Gaps in the Meat, Meat Products and Poultry Processing
Segment ............................................................................................................................................ 38
2.6. Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment............ 43
2.7. Skill Requirements and Skill Gaps in the Sugar Based Food Segment ................................ 48
2.8. Skill Requirements and Skill Gaps in the Fish Processing Segment .................................... 54
2.9. Skill Requirements and Skill Gaps in the Beverage Segment .............................................. 56
2.10. Emerging Trends in the Food Processing Sector in India ................................................. 59
2.11. Projected Industry Size and Human Resource Requirements ........................................... 62
2.12. Skill Pyramid .................................................................................................................... 68
2.13. Possible focus areas for Skill Building ............................................................................. 68
Page 2 of 71
List of Figures
Figure 1: Major markets for sale of Processed Food .............................................................................. 6

Figure 2: Evolution of Global Food Demand ......................................................................................... 6
Figure 3: PFCE in Food in India (Rs. billion)......................................................................................... 7
Figure 4: Major Segments in the Food Processing Industry ................................................................... 8
Figure 5: Level of processing in India in select segments ...................................................................... 8
Figure 6: Exports, growth, and share of different APEDA products ...................................................... 9
Figure 7: Major food processing centres in India ................................................................................... 9
Figure 8: Major product categories in F&V.......................................................................................... 11
Figure 9: F&V Value Chain .................................................................................................................. 12
Figure 10: Value chain in the Food Processing Industry ...................................................................... 15
Figure 11: Value chain for Marine Products ......................................................................................... 15
Figure 12: Value chain for Meat and Poultry ....................................................................................... 16
Figure 13: Changing profile of India’s household income ................................................................... 17
Figure 14: Generic Value chain in the Food Processing Segment ........................................................ 20
Figure 15: Value chain within the Dairy Processing Segment ............................................................. 23
Figure 16: Primary Processing of Milk ................................................................................................. 23
Figure 17: Secondary Processing of Milk ............................................................................................. 26
Figure 18: Profile of people employed in the Dairy Processing Segment (Organised) ........................ 27
Figure 19: Value chain within the Food Grain Milling Segment.......................................................... 29
Figure 20: Profile of people employed in the Food Grain Milling Segment (Organised) .................... 30
Figure 21: Value chain within the Edible Oil Segment ........................................................................ 33
Figure 22: Profile of people employed in the Edible Oil Processing Segment (Organised) ................. 34
Figure 23: Value chain within the Meat/Poultry Segment .................................................................... 38
Figure 24: Steps in Meat Processing ..................................................................................................... 38
Figure 25: Value chain within the Fruit and Vegetable Processing Segment ....................................... 43
Figure 26: Profile of people employed in the Fruit and Vegetable Processing Segment...................... 45
Figure 27: Value chain within the Biscuits Sub-segment ..................................................................... 48
Figure 28: Profile of people employed in the Biscuits Sub-segment .................................................... 49
Figure 29: Value chain within the Chocolate Sub-segment .................................................................. 52
Figure 30: Value chain within the Fish Processing Segment ................................................................ 54
Figure 31: Value chain within the Beverage Segment .......................................................................... 56
Figure 32: Profile of people employed in the Beverage Segment ........................................................ 57
Figure 33: Changing structure of the Food Processing Industry........................................................... 63
Figure 34: Share of various states in employment in the Food Processing Industry ............................ 65
Figure 35: Skill Pyramid for the Food Processing Industry .................................................................. 68
Page 3 of 71
List of Tables
Table 1: Leading companies in F&V Processing .................................................................................. 10

Table 2: Profile of major growth segments ........................................................................................... 13
Table 3: Key Success Factors and Risk Factors in the Food Processing Industry ................................ 18
Table 4: Current employment in the Food Processing Industry ........................................................... 20
Table 5: Functional distribution of human resources across segments ................................................. 21
Table 6: Typical profile of persons employed in the Food Processing Segment (Organised sector) ... 21
Table 7: Distribution of human resources by education level............................................................... 22
Table 8: Bodies under the NDDB ......................................................................................................... 24
Table 9: Skill Requirements and Skill Gaps in the Dairy Processing Segment .................................... 27
Table 10: Skill Requirements and Skill Gaps in the Food Grain Milling Segment .............................. 30
Table 11: Skill Requirements and Skill Gaps in the Edible Oil Processing Segment .......................... 35
Table 12: Skill Requirements and Skill Gaps in the Meat/Poultry Segment ........................................ 39
Table 13: Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment ........... 45
Table 14: Skill Requirements and Skill Gaps in the Biscuits Sub-Segment ......................................... 50
Table 15: Skill Requirements and Skill Gaps in the Chocolate Sub-segment ...................................... 52
Table 16: Skill Requirements and Skill Gaps in the Fish Processing Segment .................................... 55
Table 17: Skill Requirements and Skill Gaps in the Beverage Segment .............................................. 58
Table 18: Projected size of Food Processing Industry till 2022 – Rs. billion ....................................... 62
Table 19: Projected human resource requirement for the Food Processing Industry (in ‘000 persons)
till 2022 ................................................................................................................................................. 63
Table 20: Function-wise requirement of human resource (in ‘000s) till 2022...................................... 64
Table 21: Available Skilled Human Resource Supply in Food Processing on an Annual Basis ......... 65
Table 22: Annual Demand for Skilled Human Resource in Organised Sector in Food Processing
Industry ................................................................................................................................................. 66
Table 23: Incremental human resource requirement for persons trained through short-term/modular
training initiatives in Food Processing Industry till 2022 (in ‘000s) .................................................... 66
Table 24: Incremental human resource requirement for persons trained through short-term/modular
training initiatives in Food Processing Industry – Annual Requirement (in ‘000s).............................. 67
Table 25: Possible focus areas for Skill Building ................................................................................. 69
Page 4 of 71
1. Environment Scanning and Competitiveness of Food

Processing Industry
1.1. Introduction
Agriculture accounts for about 1/4th of the Indian economy but employs about 2/3rd of its population.
India has about 161 million hectares of arable land of which 55 million is irrigated. Considering these
factors, it is clear that there is immense potential for the agriculture sector, and therefore the food
sector. Food processing enhances shelf life and adds value even if agricultural produce is merely
cleaned, sorted, and packaged. Further processing into high value-added products garners greater
revenue for the producer. Food Processing is also employment intensive in that for every Rs. 1 million
invested, 1.8 jobs and 6.4 indirect jobs are created1.
The Processed Food Industry is divided into the following broad segments:
Primary Processed Food – which includes products such as fruits and vegetables, packed
milk, unbranded edible oil, milled rice, flour, tea, coffee, pulses, spices, and salt, sold in
packed or non-packed forms.
Value-added Processed Food – which includes products such as processed fruits and
vegetables, juices, jams, pickles, squashes, concentrate, processed dairy products (ghee,
paneer, cheese, butter), processed poultry, processed marine products, confectionary,
chocolates, alcoholic beverages.
1.2. Global Food Processing Industry
The Global Processed Food Industry is valued at US $ 3.2 trillion and accounts for over 3/4th of global
food sales. Despite the large size of the industry, only 6% of the processed food is traded the world
over as compared to bulk agricultural commodities where 16% of produce is traded.
The USA is the single largest consumer of processed food and accounts for 31% of the global sales.
This is because as countries develop, high quality and value-added processed food such as
convenience food is preferred over staples, which are prevalent in less developed economies.
1
MOSPI
Page 5 of 71
1.3. Overview of India’s Food Processing Industry
The size of India’s Food Processing Industry in 2008 was over Rs. 3,600 billion (US $ 72 billion)2.
The overall consumption in food, as measured by PFCE, is about Rs. 19,000 billion (US $ 220
billion). The PFCE on food has registered a Compounded Annual Growth Rate (CAGR) of 9.8%
between 2003 and 2008.
Figure 3: PFCE in Food in India (Rs. billion)
12,000 10,995
9,777
10,000 9.8% 8,731
7,785
8,000 7,426
6,903
6,000
4,000
2,000
-
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: CSO and IMaCS analysis
The major segments in the Food Processing sector comprise of Fruits and Vegetables, Dairy, Edible
Oils, Meat and Poultry, Non-alcoholic beverages, Grain-based products, Marine products, Sugar and
sugar-based products, Alcoholic beverages, Pulses, Aerated beverages, Malted beverages, Spices, and
Salt.
Out of these segments, Dairy (16%), Grain-based Products (34%), Baker-based products (20%), and
fish and meat products (14%) contribute to a major portion of industry revenues, apart from the
manufacture of beverages.
2
Source: Annual Survey of Industry, NSSO 62nd round, Unorganised Manufacturing Sector In India -
Employment, Assets and Borrowings, and IMaCS analysis
Page 7 of 71
Figure 4: Major Segments in the Food Processing Industry
Fruit and
Vegetable
Processing
Aerated 4%
Alcoholic water/soft
beverages drinks
3% 9%
Bread and Food Grain

bakery Milling
20% 34%
Fish Processing
4%
Dairy Products
16%
Meat and Poultry
Processing
10%
Source: Annual Survey of Industry (ASI), MOFPI and IMaCS analysis;
The level of processing in India is low compared to international levels. Processing of agriculture
produce is around 40% in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in
Malaysia.
Figure 5: Level of processing in India in select segments
Poultry Products 6%
Meat 21%
Milk and Diary 35%
Fruits and Vegetables 2%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Source: MOFPI and IMaCS analysis
Page 8 of 71
India’s exports in the agri-related areas are estimated to be US $ 19 billion. This includes exports of
bulk agricultural commodities too. The Agricultural and Processed Food Products Export
Development Authority (APEDA) was formed with the primary objective of increasing India’s
competitiveness in exports in processed agri-related produce. The product classes under APEDA are
Floriculture, Fresh and Processed Fruits and Vegetables, Animal Products, Organic Products, and
Cereals. Export of APEDA products recorded a growth of over 30% in the last two years and stands at
Rs. 31,400 crore in 2008 (about 5% of Food Processing Industry and 10.5% of Value-added
Processed Food Industry revenues).
Figure 6: Exports, growth, and share of different APEDA products
Source: APEDA and IMaCS analysis
The major states in India where Food Processing is carried out are Andhra Pradesh (13.4% of India’s
Food Processing industry, and a centre for fruits, vegetables, and grains), Gujarat (12.7%, and a centre
for edible oils and Dairy), Maharashtra (14%, and a centre for fruit, vegetables, grains, and
beverages), and Uttar Pradesh (12%, across almost all product categories).
Figure 7: Major food processing centres in India
Page 9 of 71
Andhra
Pradesh, 13.4
Others, 16.4%
%
West
Bengal, 3.7% Gujarat, 12.7
%
Uttar
Pradesh, 12.0
% Karnataka, 5.5
%
Tamil Madhya
Nadu, 6.9% Pradesh, 6.5%
Rajasthan, 3.1
% Punjab, 5.7% Maharashtra,
14.1%
Source: ASI and IMaCS analysis
The major segments are fruits and vegetables, dairy, edible oil, and grain-based products, which
together constitution to about 70% of industry revenues. These segments are outlined below.
1.4. Fruits and Vegetables
India is the second largest producer of Fruits and Vegetables (F&V), accounting for 82 million tonnes
and 10.9% of global fruit production, and 47 million tonnes and 8.4% of vegetables production. The
prominent processed items are fruit pulps and juices, fruit-based ready-to serve beverages, canned
F&V, jams, squashes, pickles, chutneys, and dehydrated vegetables. The major products processed
and exported are dried and preserved vegetables, mango pulp, pickle, and chutney.
Some of the major companies in this segment are as follows:
Table 1: Leading companies in F&V Processing
Company Products
Capital Foods Frozen Foods
Dabur India Ltd. Jams, Pickles, Fruit Beverages
Godrej F&B Fruit Juices, Fresh F&V (Retail)
Green Valley Frozen Fruits and Vegetables
Hindustan Unilever Limited Jams, Ketchups, Fruit Beverages
Mafco Frozen fruits and vegetables
Mother Dairy (Safal) Frozen processed F&V
Page 10 of 71
Company Products
MTR Foods Pickles, chutneys (Dips)
Priya Foods Pickles, Fruit Juices
Temptation Foods Frozen fruits and vegetables, Purees
V.P.Bedekar & Sons Pvt.Ltd Spices, Pickles, Fruit & Vegetables
Foods, Gravy Mixes
Source: Various secondary sources, media reports
It is estimated that the level of processing in F&V is about 2% and the wastage is about 25%.
Juices and drinks from F&V dominate the produce in the organised sector, whiles pickles dominates
the produce in the unorganised sector.
Figure 8: Major product categories in F&V
100%
90% 20%
33% Juices/Drinks
80%
Pulp/Concentrates
70%
Potato Chips
60%
22% 50% Pickles
50%
Ready Vegetables
40% 15%
Sauce/Ketchup
30%
9% Squashes
20% 9%
2.00% Jam
10% 8%
10%
5% Cooking Pastes
0% 2% 2%
1%
Organised Unorganised
Source: FICCI Knowledge Paper on ‘Processed Food and Agribusiness’
Page 11 of 71
The value chain for this segment is illustrated as follows.
Figure 9: F&V Value Chain
Source: Rabo India Finance Limited
1.5. Dairy
India ranks first in the world in terms of milk production in excess of 100 million tonnes growing at a
rate of over 4% annually. A large number of households, and small and marginal farmers are engaged
in milk production. About 35% of the milk is processed. The organised sector processes about 13
million tonnes of milk while the unorganised sector processes about 22 million tonnes per annum.
While private diaries exist, a large proportion of the milk is processed by dairy cooperatives in the
country.
Chief products manufactured are infant milk food, malted food, condensed milk and cheese. The
southern states (about 25% of cooperative capacity each in Tamil Nadu, Karnataka, and Andhra
Pradesh, in the organised sector) and western regions (23% of cooperative capacity in Gujarat)
collectively contribute for 80% of the milk produced in India.
The rapid growth of the dairy-processing industry is likely to lead to a greater demand for value-
added, milk-based products, such as processed cheese, table butter, sour milk, yoghurt and ice cream.
A higher demand for branded and probiotic milk has also led to a rise in investment for milk
processing.
Page 12 of 71
1.6. Edible Oils
Edible Oils market in India is expected to touch Rs. 700 billion in 2010 and grow at a CAGR of over
6.5%. India has more than 15,000 oil mills, 600 solvent extraction units, 230 vanaspati (hydrogenated
oil) units, and over 500 refineries in this segment. Palm oil (mostly imported) and soyabean oil
account for over 50% of consumption followed by mustard oil and groundnut oil. A large proportion
of the edible oils is sold loosely in unbranded form (about 90% of consumption), and only a small
portion (10% by volume) in sold in branded form.
In the branded segment, soyabean oil, sunflower oil, mustard oil, groundnut oil, and olive oil are the
major items consumed.
In the next 10 years, it is estimated that the unbranded segment would grow at 5.5% and the branded
segment would grow at a CAGR of 12%. Dependence on imports would be at about 40% of
consumption, especially palm oil imports.
1.7. Grain-based products
Grain-based products are the largest contributor the Food Processing Industry, accounting for over
28% to 30% of revenues. The total rice milling capacity in the country is about 200 million tonnes per
annum. Over 90% of the produce falls under the segment of Primary Processed Food.
1.8. Growth segments
Apart from the segments detailed above, we expect growth to be segments profiled below.
Table 2: Profile of major growth segments
Segment Market Size Expected Major Products Comments

(Rs. billion) Growth till
2008 2022 – CAGR3
Fruits and 80 13% Fruit pulps and ITC, HUL, Mother Dairy,
Vegetables juices, ready-to- Priya Foods, Dabur are
serve beverages, major players
jams, squashes, Highest growth of 17%
pickles, chutneys expected in sauces and
ketchups
Dairy 1,800 11.5% Packed milk, Cadbury, AMUL, Mother
3
Assumptions are detailed in the section on ‘Demand Drivers’
Page 13 of 71
Segment Market Size Expected Major Products Comments

(Rs. billion) Growth till
2008 2022 – CAGR3
ethnic sweets, Dairy, Nestle are leading
curd and products, players
ghee, milk powder Yoghurt and sour milk are
likely to record highest
growth of 17% and 33%4
Meat and 50 16.3% Buffalo meat, Major markets for Meat are
Poultry Mutton, lamb Philippines, Malaysia,
meat, Poultry meat Egypt, and Mid-East
Major markets for Poultry
are UAE, Kuwait, Oman,
Japan, and Germany
Major players are A.P.
Meat & Poultry
Corporation, Hyderabad,
Allana, Al-kabeer, MAFCO
Marine 121 14.8% Fresh Fish, Frozen Major export markets are
Products Shrimp, Frozen USA, Japan, Spain, and UK
fins, Cuttle fish, Major companies are ASF
squid, dried items, Seafoods, Bell Foods,
other frozen items Venkateshwara Hatcheries,
Pune
Beverages 420 14.1% Wine, beer, Indian United Breweries, SAB
– Alcoholic Made Foreign Miller and Mohan Meakin
and Liquor are major players
Malted Wine sector is expected to
record fastest growth of
22%
Increasing Mergers and
Acquisition (M&A) activity
Source: ASI, APEDA, Vision 2015 of MOFPI, other secondary sources, and IMaCS analysis
4
Source: FICCI Knowledge Paper on ‘Processed Food and Agribusiness’
Page 14 of 71
Human Resource
R and Skill Requirem
ments in the Food
F Processin
ng Sector
The valuue chain speccific to Meatt and Poultryy is detailed below.

b
Figu
ure 12: Value chain for Meat
M and Pooultry
Sourcce: IMaCS an
nalysis
1.10. Dem
mand Driivers
The keyy demand drivvers for this sector are inncreasing inccome levels fuelled
f by GD
DP growth leeading to
a rising middle classs. India is expected
e to be the only country am
mong the BR
RIC countriess (Brazil,
Russia, India, Chinaa) forecastedd to record GDP
G growth rates betweeen 5% and 66% consisten
ntly up to
2050.
India’s growing
g midddle class (exxpected to toouch 500 miillion personns by 2010-112) is furtherr fuelling
consumeerism. This has resultedd in the willlingness to try
t new prodducts, increaased consum
mption of
Value-addded Processsed Food, movement
m to convenience
c foods and RTE
R foods, shopping at organised
o
retail chhains (organiised food rettail is expectted to increaase from its current
c sharee of 4% of retail
r at a
rate of 30%
3 in the neext 10 years)), and increassing brand co
onsciousnesss.
Page 16 of 71
Figure 13: Changing profile of India’s household income
Million Households Annual Income (Rs.)

199
179
164
6 Rich (>215000)
2
1
Consumers (45000 to 215000)
32.5 54.2 90.9
Climbers(22000 to 45000)
54.1
71.6
74.1 Aspirants(16000 to 22000)
44
28.1
15.3 Destitutes (<16000)
33 23.4 12.8
1997-98 2000-01 2006-07
Source: NCAER and IMaCS analysis
All this is expected to lead to increasing consumption on food. While the proportion of food in the
‘share of wallet’ is likely to come done, the overall size would continue to increase due to increasing
income levels.
The following are some of the demand drivers unique to certain segments:
Fruits and Vegetables:

• With the expanding middle income group as a proportion of total population and
increasing disposable income in all sections, the expenses on food are increasing. More
Indians are becoming health conscious, but due to paucity of time, they prefer processed
fruit and vegetables which will be fuelling the demand of these products in India in years
to come.
• Export-led demand growth, demand for fresh F&V at homes, rising preference for
organic produce, consumer acceptance of processed food, demand for sauces,
concentrates, sauces with changing lifestyles and preference for convenience and ready
made produce.
Dairy products: Domestic and Export-led demand growth for curd and yoghurt, as well as
milk proteins.
Meat and Poultry: Increasing consumption levels are expected to drive demand for processed
meat and poultry. Vegetarianism in India is actually low, as compared to perception (only
Page 17 of 71
20% of population are strictly vegetarian), implying that people will experiment with poultry
and move to meat as incomes rise. Further, preference for fresh meat in the domestic market
and demand for high-vale frozen foods in the export markets will drive growth. Also with the
emergence of big players such as Suguna, there will be much more scope of fulfilling the
demand supported by their state of art processing infrastructure and increased capacity.
Beverages: Changing perception of alcoholic beverages in India from ‘taboo’ to ‘socially
acceptable’ has led to immense internal demand growth, wide range of product offerings, the
opening up and increasing ‘organisation’ of distribution channels will drive growth of
alcohols in the beverages segment, supported by soft drinks, etc.
1.11. Key Success Factors and Risk Factors
In India, the technology used in processing is not abreast with international trends in all sectors - this
is a significant risk factor for the industry across segments. An overview of other key success factors
and risk factors for the Food Processing Industry is presented below for select high growth segments.
Table 3: Key Success Factors and Risk Factors in the Food Processing Industry
Segment Key Success Factors Key Risk Factors

Fruits and Ability to establish forward and About 35% of agricultural produce is
Vegetables backward linkages through contract wasted due to poor cold chain linkages
farming, cold chains, and a strong during storage and transportation
distribution network International trade rules and increasing
Use of modern technology in F&V protectionism in export markets
processing rather than manual Poor performance of the
methods agricultural/primary sector.
Using hybrid seeds to improve yields
Large number of innovative products
and branding.
Dairy Ability to increasing scale of output Low productivity in milch animals
Products Wide product portfolio of high-value despite the largest bovine population (250
products such as yoghurt, sweets million)
Ability to tap into export markets Lack of scale in the industry despite of
Developing a portfolio of milk-based success stories such as AMUL.
products.
Meat and Ensuring quality and sustained Quality and hygiene is low in street-side
Poultry branding wet markets
Page 18 of 71
Segment Key Success Factors Key Risk Factors

Ability to tap into export growth in Imperfect slaughtering
the value-added segment High supply chain costs as feed
constitutes 60% of total broiler costs
Relatively unregulated slaughter facilities
to the extent of 50%. The country has
only 3,600 slaughterhouses, 9 modern
abattoirs and 171 meat processing units,
and a limited number of pork-processing
units
Primitive rearing techniques.
Common Product innovation – packaging, look Poor supply chain facilities and cold
to industry and feel – especially in snacks and storage
RTE Continuing preference for fresh food
Competitive pricing among consumers
Strong branding (along similar lines Poor yield of crops and milch animals.
of an FMCG play).
Source: Various secondary sources, industry updates, and IMaCS analysis
1.12. Outlook for the Food Processing Industry5
The growth of the Food Processing Industry is likely to be driven by growth in consumption of food
(which is in turn driven by rising incomes, changing lifestyles, and a growing middle class), gradual
acceptance of processed food, rising share in the export markets. This has been detailed in the section
on ‘Demand Drivers’.
The major growth segments are likely to be:
F&V, growing at 13%

Dairy, growing at 11.5%
Meat and Poultry, growing at 16.3%
Marine Products, growing at 14.8%
Beverages growing at 14.1%.
The hubs of growth in this will be Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Uttar Pradesh,
Karnataka, and Madhya Pradesh.
5
The projections in this section are likely to change/be refined further based on interactions with industry
representatives
Page 19 of 71
Human Resource
ments in the Food
F Processin
ng Sector
2. Hu
uman Resource
R e and Skill Requirem
R ments iin the Food
Processingg Sector
2.1. Current Employm

ment Patttern in thee Food Prrocessing Sector in
n India
The Foood Processinng Sector em

mployed aboout 8.5 millio
on persons in
i 2008, witth about 18%
% of the
employm
ment in the organised
o secctor.
T
Table 4: Currrent employm
ment in the Food
F Processsing Industtry
Sectoor Number off Sh

hare (%)
peersons (millio
on)
Organissed 1.53 18%
Unorgannised 7.00 82%
Total 8.53 100%
Source: Annual
A Surveyy of Industry, NSSO 62nd roound - Unorga
anised Manufaacturing Sectoor in India
- Employyment, Assets and
a Borrowinngs, and IMaC CS analysis
The proccessing of foood is consissts of ‘Primarry Processing’ which invvolves activitties such as cleaning;
c
sorting, grading, as well
w as ‘Secoondary Proceessing’ in hig
gh value add products.
Figgure 14: Gen

neric Value chain in thee Food Proceessing Segm
ment
Souurce: Primaryy Research and

d IMaCS Anallysis
A large portion of thhis value chaain is in the unorganised

d sector and highly fragm
mented, startting from
the farm
mer to ‘mandii’ to the proccessor, and distributor
d an
nd retailer. Thhe organisedd sector contrributes to
about 655% of the vallue of outputt of the sectoor6.
6
Source:: IAMR Reporrt on Food Proocessing Induustry
Page 20 of 71
2.1.1. Functional distribution of human resources
Our interactions with representatives from the industry reveal that a significant proportion of the
workforce is involved in Manufacturing Operations followed by functions such as Testing and Quality
and other functions which include Sales and Distribution; support functions such as HR,
administration, finance, etc.
Table 5: Functional distribution of human resources across segments
Function % of employees
Procurement 10%
Testing & Quality 20%
Production 55%
R&D 1-2%
Storage 2-3%
Other (sales and other 10%
support functions)
Source: Primary Research and IMaCS Analysis
In the organised sector, our interactions with representatives in the industry suggested that a typical
ratio for operation of a large unit for post-graduate: graduate: diploma/ certificate holder is 1:2:4 in
the Food Processing Industry. This proportion of persons is largely similar across the various
segments of the industry.
Table 6: Typical profile of persons employed in the Food Processing Segment (Organised sector)
Title of statistics Typical indicators Remarks about function
Post Graduates: Graduates 1:2 Management, Technology adoption,

Production
Post Graduates: Diploma- 1:4 Production, Supervisory, and Quality Control
Certificate-holders
Function-wise classification of trained people required per 100 employees
Post Graduates 1 Management, Technology adoption,

(in Food Technology and Production
Management)
Graduates 2 Production and Quality Control
Page 21 of 71
Diploma-holders 2
Supervisory and Maintenance
Certificate –holders 2
Source: Primary Research and IMaCS analysis
In the unorganised sector, a large portion of the workforce is composed of helpers (who are minimally
educated) and a few (1 or 2) trained employees in-charge of the production and quality functions.
2.1.2. Distribution of human resource by education level
The following table represents the education profile of persons across segments of the organised side
of the Food Processing sector in India. As seen, most of the persons employed are minimally educated
and most have studied till 10th standard or below.
Table 7: Distribution of human resources by education level
Total employment Industry Aggregate
Employees with 1-2%

management education
Proportion of food 20%
technologist
Post Graduates 0.5%-1%
Graduates 10%
Diploma holders 2%-5%
Certificate holders 2%-5%
(ITI/ITC)
th
10 standard or below 80%
(those requiring ‘short-
term/modular’ training/skill
building of some form or the
other)
Page 22 of 71
2.2. Skill Requirements and Skill Gaps in the Dairy Processing Segment
2.2.1. Value chain in the Dairy Processing Segment
The following figure illustrates the composition of the value chain in the Dairy Processing Segment:
Figure 15: Value chain within the Dairy Processing Segment
Milk Local Transport Primary Secondary Retail

producer collection processing processing
center
Customer
Customer
The first step in the value chain is procurement of milk from co-operatives/individual suppliers which
is followed by processing, storage, transport, and distribution. There are two stages of processing of
milk: the primary processing which yields milk in various forms such as skimmed, toned, double
toned, etc. which is packed into poly, tetra packs etc. The secondary processing is used to turn the
“milk as such” in various kind of consumables, where each of such consumption items have different
methods of processing and specific usages in the production of milk-based sweets, curd, cheese, ice-
creams, etc.
Figure 16: Primary Processing of Milk
Cooling Standardisation Sterilisation
Contration,
drying
Transportation Pasteurisation
Collection of
milk from
producer
Product
Testing and Homogenisation specific
measuring processing *
Freezing and
Storing Storing packing
Distribution for
customer
Source: Food and Agriculture Organisation, Based on Industry Inputs
Page 23 of 71
*Product specific processing has been detailed in the following sections, the milk obtained as an output from
primary processing can be used for consumption directly in the form of skimmed, toned, malted milk, etc.
The various steps in the value chain are detailed below.
1. Procurement of milk from producers:
National Dairy Development Board (NDDB) is the apex body under which state level co-
operative federations for procurement of milk are run in India. This system was modelled
alike the Kheda District Co-operative Milk Producers’ Union Limited and it was set up in
1965.Under this system a hierarchy has been established for ensuring streamlined milk
production and processing .
Table 8: Bodies under the NDDB
Body Number
State federations 22
District co-operative union 170
Village co-operative societies 74,000
Producer members (in Millions) 9.4
Source: Website of NDDB
The District co-operative union operates the milk processing plant which also houses the
milk chilling centre. This also serves as a hub of production and communication for the state
federations.
Village milk co-operative

• It is a society of primary producers formed under the guidance of a supervisor or
milk supply officer of the Co-operative Dairy Union (district level co-operative
operating the processing plant).
• A milk producer becomes a member by buying a share from the co-operative
society and agreeing to sell milk only to the society. Co-op members elect a
managing committee and a chairperson responsible for the recruitment of staff to
manage the day-to-day operations of the society.
• Each society has a milk collection centre for collection of milk from
farmers/members. The daily procurement of milk by the co-operatives is 13 million
litres per day.
Page 24 of 71
2. Primary processing takes place at District level collection centres
The milk is first filtered so as to remove foreign particles and transported to the processing
centre through cold storage tank. Once the milk enters the factory, it is graded by using a
sampling method. The sample has to adhere to the specifications of SNF (Solid Non-Fat)
value and acidity. In this stage, fat and cream is added or removed depending on the output
which is expected (toned, double toned, skimmed, etc.)
It is followed by pasteurisation where milk is processed at a controlled temperature to kill

pathogens. Homogenisation is then effected to bring consistency in the produce of different
suppliers and bring uniformity in specification. After this, milk is then packed (poly, tetra
packs) or sold in bulk through token system, and distributed at outlets such as that of Mother
Dairy or sent for further processing.
3. Processed milk7
• Skimmed milk is prepared by removing the fat, vitamin A, and other fat-soluble vitamins
from whole milk. The fat is removed by using a cream separator. After the removal of fat, the
milk is suitable for many therapeutic conditions such as diabetic, obesity, high cholesterol,
heart diseases, hypertension, etc.
• Standardised milk is prepared from buffalo milk or a mixture of buffalo and cow’s milk by
mixing with skim milk so that the fat content of the mixture is reduced to 4.5%. Its nutritive
value is almost similar to that of cow’s milk.
• Toned milk can be defined as the addition of the constituted skim milk to whole buffalo milk
so to reduce the fat to 3%. The nutritive value of toned milk is almost similar to that of the
fresh cow’s milk.
• Double toned milk is prepared by mixing cow’s milk or buffalo milk with fresh skim milk or
skim milk reconstituted from skim milk powder so that the fat content is not less than 1.5%.
Except for lower fat and vitamin A contents, the nutritive value of double toned milk is
similar to that of toned milk.
• Sweetened condensed milk contains about 40% sucrose but the concentration of milk solids is
nearly the same as in evaporated milk. Because of its high sucrose content it is not suitable for
feeding infants. It is used for the preparation of pudding, coffee, and tea. It has to be
reconstituted with water before consumption if required.
• Malted milk powder is prepared from whole milk and malt extract. It contains 15% proteins
and 7% fat.
7
Source: Ministry of Food Processing Industry
Page 25 of 71
• Dried and packed milk could be preserved for longer time it can be dried and packed. The
skimmed milk powder is prepared by spray process in which minute droplets of milk are
sprayed into a heated chamber and powder falls to the bottom. To reconstitute this powder
into milk one part of the powder is added to eight parts of water.
Figure 17: Secondary Processing of Milk

Milk
Culturing of Acid addition

Condensed Milk fat
milk
(Heat
desiccated)
Cream/
Dahi Rabri, Khoa Paneer
malai
Lassi Sweets
Yoghurt
Cheese
Butter Ice cream
Srikhand Kheer /
Ghee
payasam /
ethnic sweets
Source: MOFPI Website
4. Secondary Processing of milk
The secondary processing of milk involves culturing (or) condensing (or) centrifugation (or) addition
of acid to produce the following:
• Cream: The fat, which floats to the surface of milk when allowed to stand for several hours,
is cream. Commercially it is separated by centrifugation.
• Khoya: Khoya is a milk product in which the water content is reduced to between 20 and
25%. It is prepared by vigorously boiling and stirring milk continuously.
• Paneer: Paneer is prepared by adding citrus or lemon juice to boiling milk. Commercially the
previous residual paneer liquid is used which precipitates casein, lactalbumin, and fat
• Curd: Curd is a sour milk preparation regularly made and highly consumed in Indian homes.
The butter-fat is removed from curd by churning and further used to make ghee.
Page 26 of 71
2.2.2. Profile of people employed
The following figure illustrates the profile of persons employed in the Dairy Processing Segment.
Figure 18: Profile of people employed in the Dairy Processing Segment (Organised)
Large size units: MBAs /Post

graduates/ Graduate in dairy Senior Plant
technology Manager
Smaller size units: Persons with
10 - 15 years industry experience
Personnel certified: Graduates Procurement Production R&D Sales and

with degree in dairy Quality / Distribution
Head Manager Team head Testing
technology,Diploma holders+ 7-8 head
years industry experience
Co-operatives Food
Freshers, Personnel with Line Area sales
/ sourcing on technologists/ Field
certification /dilpoma courses+ 3- Incharge / manager
contract basis Analysts Officers
4 years industry experience Supervisors
Short term certificate courses/ 10

th-12 th pass with 1-2 years of Operators
experience
In the unorganised sector in dairy processing, there are persons who own and operate units to cater to
the demand of milk products such as sweets, ghee, curd, milk, etc. at a localised level.
2.2.3. Skill requirements and skill gaps
The following table presents the skill requirements and gaps across various functions and
hierarchical/reporting ‘levels’ in the organised sector of the Dairy Processing Segment.
Table 9: Skill Requirements and Skill Gaps in the Dairy Processing Segment
Function Level Skills required Skill gaps
Production Producer of • Identifying a loyal consumer locally, or • Inadequate education

milk (person becoming a member of village level co- of farmers about
Page 27 of 71
owning operative for getting the best prices of the latest techniques for
cattle) produce minimising wastage
• Understanding the basic quality • Inadequate
requirements and ways to maintain knowledge of ways
hygienic conditions of maintaining the
• Implementing basic value addition in quality of produce
terms of pre-heating, etc. for minimising
wastage
Helper / • Knowledge of basic controls of milk • Inadequate
Operator processing machines knowledge of
• Basic importance of quality maintenance machine handling
in terms of consistency to rules • Poor knowledge of
• Understanding basic quality requirements operating in a
and adequate knowledge of maintaining hygienic environment
hygiene while cleaning and packaging.
Procurement - • Networking skills to maintain good • Inadequate ability to
relationship with the farmers and milk forecast demand
producers/village cooperatives • Inadequate
• Ability to forecast daily demand and communication
maintain procurement at appropriate skills, especially in
levels. local language
• Understanding of the safety measures because of diverse
during transport from procurement dialects
centres to plant.
Testing/ - • Understanding of correct sampling • Inadequate ability to
Quality methods practically conduct
check • Adequate knowledge of Food Act, the tests and record
specifications of product wise acceptable results
constituent levels
• Adequate practical knowledge on
conducting tests, recording results, and
reporting.
Page 28 of 71
2.3. Skill Requirements and Skill Gaps in the Food Grain Milling
Segment
2.3.1. Value chain in the Food Grain Milling segment
The following figure illustrates the composition of the value chain in the Food Grain Milling
Segment:
Figure 19: Value chain within the Food Grain Milling Segment
Farmer Farmer Marketing Secondary De- husking Paddy

produces sells to societies buy processing at separation
wheat/paddy mandi from mandi processing
(HAFED, plant
CWC etc.)
* Pre-cleaning
* Initial cleaning * Drying
* Packing
* Paddy storage
* Marking
* Stitching * Secondary
* Loading cleaning
Polishing Color Grading QC Packing Retailing

sorting /Inspection
This sector has a mix of entrepreneurs belonging to the unorganised sector, cottage industries, and the
organised sector. However, the capacity in primary processing is largely concentrated in the
unorganised segment. The processing is primarily related to the following:
• Rice mills
• Flour mills
• Pulse processing
• Coarse grain processing.
The various steps involved in processing are cleaning, hulling (removal of excess husk), soaking and
steaming, drying, milling (conversion to milled white kernels), grading, polishing, and storage.
Page 29 of 71
The following figure illustrates the profile of people employed in the Food Grain Milling Segment.
Figure 20: Profile of people employed in the Food Grain Milling Segment (Organised)
Large size units: Post graduates/ Senior Plant

Graduate in food technology Manager
Personnel certified: Graduates Sales and

with degree in food Production Quality/
Procurement Distribution
technology, Diploma holders+ 7-8 Manager Testing head
Freshers, Personnel with Area sales

certification/dilpoma courses+ 3-4 Line Incharge Lab
/ Supervisors Analysts manager
Short term certificate courses/ Zone

10th / 12th pass with 1-2 years of Aadti Operators Operators manager
experience
hierarchical/reporting ‘levels’ in the Food Grain Milling Segment:
Table 10: Skill Requirements and Skill Gaps in the Food Grain Milling Segment
Operations Experienced • Ability to handle • Inadequate team handling and

personnel breakages/breakdown in worker handling skills
machine parts, inadequate • Inadequate planning of work
inventory schedules
• Ability to effectively
communicate with the team and
brief them of production
objectives
Page 30 of 71
• Technical knowledge of milling

machinery
Helper level • Knowledge of basic controls • Inadequate understanding of
and settings of machines being machine controls in
worked on • Inadequate understanding /
• Understanding of basic knowledge of ways to
mathematics to identify and minimise breakage
accordingly implement the
instructions of the supervisor
pertaining to production
schedules.
• Basic importance of quality
maintenance in terms of
consistency with respect to.
following rules / guidelines
Worker at • Ability to stitch gunny bags • Inadequate ability to stitch
8
Artiya shop neatly so as to avoid leakage gunny bags well, leading to
• Ability to appropriately mark leakages from the bags
gunny bags / index them such • Inadequate ability to follow
that markings are unambiguous rules of marking gunny bags
Procurement - • Understanding of appropriate • Inadequate ability to forecast
ways for proper transport of the demand accurately
produce till the processing plant • Inadequate training skills for
• Correct forecasting for demand encouraging the producers for
and accepting produce on the better productivity and quality
same basis from artiyas
• Networking skills to maintain
good link with the producers
Testing - • Visual examination skills for • Inadequate practical expertise
faster segregation and checking in conducting tests
of input/output
• Ability to record the results as
they are observed and reporting
8
Artiya: Middleman/Agent at the village level engaged in the trading of produce
Page 31 of 71
non adherence to standards

Contract - • Ability to decide which crop to • Inadequate knowledge of
famer/ grow in what quantity and find latest / best farming practices
Farmer out the requisite inputs relating with because of lack of
selling to appropriate seed, fertiliser, training /access to other
Produce in irrigation, etc. information sources
open market • Ability to undertake pre- • Inadequate knowledge of
processing at the farm – i.e. the percentage increase in value
ability to undertake initial with minimal value addition to
sorting, grade the produce for produce
commanding better price in
Mandi, etc.
• Knowledge of best handling
practices and transport practices
which ensure least wastage due
to moisture, microbes, etc.
Page 32 of 71
Human Resource
ments in the Food
F Processin
ng Sector
2.4. Skill Reequiremen

nts and Skill Gap
ps in thee Edible Oil Proccessing
Segmentt
2.4.1. Vallue chain in

n the Ediblee Oil Processsing segmeent
The folllowing figurre illustratess the compoosition of the value chaain in the Eddible Oil Prrocessing
Segment:
Figure 21: Value chain

c within the Edible Oil
O Segment
Sourcee: Primary ressearch, Food and Agricultu

ure Organsiattion, IMaCS A
Analysis
Determiination of moisture
m conteent on oilseeeds delivered
d to the processing millls is carried out. The
mills aree equipped with
w their ow
wn laboratorries to carry out the anaalysis. If necessary, the seeds
s are
dried, too the moistuure content required
r for safe storage. The oilseeeds are ofteen stored for several
months before processing and need
n to be kept
k at accep
ptable levelss of moisturre content to
o prevent
deterioraation throughh moulds. Inn the factory, seeds are su
ubjected to a number of pprocessing stteps prior
to oil exxtraction, succh as:
• Seed cleaniing: The oillseed is cleaaned to remove trash, dirt,

d sand annd metal pieeces. The
oilseed is theen weighed for
f accurate control of oiil and cake yiield.
• Decorticatioon: The shelll or seed cooat is often removed
r froom the oilseeed kernel. It helps in
raising the oil o the raw material beforre it enters thhe extractionn machinery and also
o content of
ensures highher protein coontent in the oil-cake.
Page 33 of 71
• Size reduction, rolling: Size reduction of the seed is sometimes followed by rolling to
produce flakes which are then conditioned. Conditioning or 'cooking' oilseeds
involves heating the oilseed in the presence of water.
• Oil extraction: Oil is extracted from the treated seed particles in continuous screw expellers.
In very large extraction operation is used as a pre-treatment before solvent extraction.
• Solvent extraction: It removes the oil from a flaked seed or oil-cake by treating them with a
solvent in which the oil is soluble.
• Crude oil refining: Crude oil is refined in three main steps, neutralisation, bleaching and
deodorising, which remove fatty acids, colour, and off-flavours, respectively. Each of these
processes involves heating the oil to a certain extent. The refining processes may be carried
out in stages using batch plant or by using equipment providing continuous operation.
The following figure illustrates the profile of people employed in the organised sector in the Edible
Oil Processing Segment.
Figure 22: Profile of people employed in the Edible Oil Processing Segment (Organised)
Large size units:
MBAs/Graduates in oil(food) Senior
technology Management
Smaller size units: Persons with
10 - 15 years industry
experience
Graduates with 3-5 years of

experience/ diploma holders Sales and Operations Quailty
with 7-8 years industry Procurement marketing manager head
experience
Lab:Graduates in oil
technology, persons with 3- Regional sales Lab
5years industry experience/ officers Supervisors
technologists
Diploma holders with
experience
10th or 12th pass personnel with

some experience/personnel Operators Operators
certified in short term course
Page 34 of 71
2.4.3. Skill requirements and skill gaps in the Edible Oil Processing Segment
hierarchical/reporting ‘levels’ in the Edible Oil Processing Segment.
Table 11: Skill Requirements and Skill Gaps in the Edible Oil Processing Segment
Level /
Function Skills required Skill gaps
Description
Manufacturing Supervisor Ability to motivate workmen / Inadequate written / verbal
operators for consistently communication skills
maintaining better productivity Inadequate documentation
(output per hour) and machine skills
handling skills Inadequate ability to handle
Excellent communication skills operators
and knowledge of local language
Ability to work in teams
Operator/ Ability to understand that refining Inadequate knowledge of
Packer processes are time sensitive machine parts, leading to in-
processes ability to operate machines
Knowledge of basic scales for and tackle
adjusting the correct control breakdowns(sporadic and
settings and codifying of batches continuous)
(MRP, Batch no etc.) Inadequate sensitivity to
Knowledge of control settings- productivity issues(low
temperature, time setting controls. process output over a time
Ability to pack quickly horizon)
Knowledge of label pasting at Inadequate sensitivity to
right place and using appropriate continuously improve
coding quality by contributing in
Adequate knowledge of machine process improvement
operations , parts and the ability (suggesting changes so as to
to undertake preventive remove redundant steps,
maintenance for small machine decrease time in transporting
problems w.i.p, appropriate storage of
Basic reading and writing skills to materials and inventory).
be able to understand the standard
operating procedure
Page 35 of 71
Level /
Description
Procurement Firm Good spoken/written language Inadequate technical
importing skills to be able to deal with knowledge of the product
crude oil foreign suppliers markets, especially at the
Ability to maintain proper entry levels
documentation and co-ordinate Inadequate communication
operations with the shipping/ and co-ordination skills
logistic providers. while dealing with
Knowledge of commodity international clients
markets: Since it is a very volatile Inadequate networking,
market, a very good knowledge of negotiation/bargaining skills
operations of the market/hedging, for efficient vendor/client
etc. is preferable management, especially at
Computer usage skills are the entry level
important since all co-ordination
with clients, logistic provider etc.
happens over the internet and so
does the tracking of markets
Firm Excellent command over local Inadequate ability to
procuring language to be able to interact motivate contract farmers
from with farmers for local sourcing for continuous improvement
contract Ability to co-ordinate with in production levels in a pre-
farmers farmers, negotiate prices and defined time horizon and
discuss quality issues incremental increase in the
Ability to direct/provide farmers quality of seeds and the level
with crop cultivation inputs of value addition.
Ability to motivate team of
contract farmers for quality focus
and improved productivity
Quality Quality Ability to understand sampling Inadequate ability to execute
Executive techniques, so as to be able to the right sampling
collect samples when the produce procedures
enters the company gates, perform
lab tests and report rejections.
Ability to understand regulatory
Page 36 of 71
Level /
Description
requirements, such as food laws
and adherence to prescribed
ingredient proportion level, which
if not followed could make the
output unsuitable for consumption
Quality Infer the sampling report, re- In-adequate attention to
Manager check the rejections, keep track of working collaboratively for
the related vendors and make introducing process
necessary communication to the innovation for improving the
procurement team. productivity of the process
Track the quality of output and quality of output
samples and make necessary delivered.
suggestions to the operations team
for process improvement.
Documentation and reporting
skills
Sales and - Ability to maintain Inadequate professional
marketing correspondence with customers communication skills,
division and service their requirements especially at the entry level
seamlessly
Ability to approach the market for
new customers
Very good communication skills
for dealing with old and new
customers, and intra team
communication.
Ability to track competition and
trends in the market and devise
new customer engagement
strategies accordingly e.g.
competitive pricing /innovative
packaging, new marketing
campaigns
Page 37 of 71
2.5. Skill Requirements and Skill Gaps in the Meat, Meat Products and
Poultry Processing Segment
2.5.1. Value chain in the Meat/Poultry Segment
The following figure illustrates the composition of the value chain in the Meat/Poultry Segment:
Figure 23: Value chain within the Meat/Poultry Segment
Contract Sells the table Processing Quality Packaging Retail

farmer / eggs or (bird of meat in check
farmers is sold in live abattoir
obtains the market) or (to
Day-old- processing
chicks-DOCs farm)
A typical meat processing plant diagram is:
Figure 24: Steps in Meat Processing
Water as an input is used at all the stages (excepting packaging)
Delivery and Slaughtering Hide removal/ Evisceration Trimming Boning and

holding of (after de hairing/de processing and Carcass chilling
stunning) feathering plant washing
livestock
Waste Waste
Waste Waste Waste generated: fat generated:
generated: Waste
generated: generated: and meat Waste water
manure, generated:
Hides, Offal, trimmings,
mortalities waste water,
feathers, Paunch, waste water
blood
heads, and Manure,
waste water waste water
Source: Primary research, Waste Reduction resource centre website, IMaCS Analysis
The major activity of poultry and meat processing is handled by the organised segment. The industry
is segmented in three segments on output basis:
• Live bird as output: It constitutes major portion of the total meat market in India. A
considerable portion of players in this market operate in the unorganised sector (around 40%).
Page 38 of 71
• Processed meat as output: This is a small segment presently, is regulated by large players
and is experiencing growth driven by changing consumption patterns
• Layers market: Here table egg and egg powder (including several variants) are the output.
The market is dominated by organised players .The market is dominated by 2-3 players who
accounts for about 90% of the total production in this sector.
Also, the various kinds of farms are as below:

• Broiler Farm: In a broiler farm, the chicken are raised for meat production and the typical
bird/worker ratio which is maintained is 1 worker for 2,500-5,000 bird depending on the
paying capacity of the farmer.
• Breeder Farm: In a breeder farm, DOCs are sourced from Grand parent farm are reared and
allowed to hatch, the output DOCs are supplied to broiler farms where these are raised and
allowed to hatch . Here 1 worker is employed per 1,000 birds because the attention levels to
be provided to each bird increases as the gestation period increases.
• Grandparent Farm: In a grandparent farm, the pure line breed of birds is reared and the
worker ratio is maintained at 1:600 birds as the requirements become much more specialised
and operational procedures become much more tedious.
hierarchical/reporting ‘levels’ in the Meat / Poultry Segment.
Table 12: Skill Requirements and Skill Gaps in the Meat/Poultry Segment
Level /
Skills required Skill gaps
Description
Worker at Basic knowledge of reading/writing to be able Inadequate ability to
Broiler farm to understand the standard operating understand standard
procedures as specified by the contracting operating procedures which
company includes knowledge of what
Meticulous tracking of time in specific to do / what not to do.
operations such as (i) eggs when laid in semi
solid form should be collected within 1 hour
Page 39 of 71
Level /
Description
time to avoid any mixing of impurities, (ii) the
time of opening /closing of purdah9, (iii)
providing feed at appropriate timings, etc.
Ability to undertake rearing of DOC and
continuously monitor supplies, for example,
special care has to be given to the details such
as provision of feed/ water in the shed
Ability to understand and execute the hygiene
requirements such as cleaning of cell of
pickings after alternate days, fumigation of
laid eggs and their transfer in controlled
atmosphere.
Ability to carry out basic counting for
counting the birds every day.
Worker at • Ability to examine the health of birds when Inadequate consistency in
Breeder farm they are brought in operations due to inadequate
• Ability to monitor timings since birds at this understanding of immediate
stage are more sensitive to the quality of feed, or long term impacts
the water availability, etc. Tendency to change jobs
• Ability to maintain hygienic conditions frequently, leading to a high
attrition rate and
consequently lower quality
of work and lower
productivity
Worker at grand • Ability to communicate medical problems to Inadequate technical
parent farm supervisors who can arrange for collection of knowledge for primary
blood sample and further check ups for birds medication in case of
• Ability to administer medicine disease/infection
Inadequate awareness of
preventive care techniques
Inadequate adherence to
time for operations such as
providing feed, lifting
9
A veil that controls the light entering into a bird’s cage, which influences eating habits
Page 40 of 71
Level /
Description
purdah, and other such
operational jobs
Supervisory • Ability to ensure that water samples are Inadequate communication
staff checked for sanitation at proper intervals skills while interacting with
(Experienced • Ability to lay special emphasis on hygiene in the team
personnel) the sheds because this impacts the Inadequate understanding of
performance of birds (birds are sensitive to the importance of
environmental conditions while laying eggs, maintenance of hygiene for
mating, etc. and the mortality rate is also an improving bird performance
outcome of the feed provided and the hygienic (as birds respond positively
conditions maintained) to a clean conditions at time
• Ability to implement steps to make sure that of hatching)
performance on quality parameters such as
bird productivity (feed/weight ratio), bird
performance, etc. is high while the mortality
rate is low.
Veterinary Ability to take care of the nutrition needs, Inadequate verbal
services medicinal needs, and special medical care communication skills for
needs of critical birds. implementing effective
Communication and training skills for training.
interacting with the workers on the issues like Inadequate initiative to
maintenance of environment in cells where execute preventive care
birds are kept, the timely execution of feeding methods for better
schedule of birds performance of birds
Page 41 of 71
Level /
Description
Manager level Ability to control the top line / bottom line Inadequate ability to
and supervise the overall operations of a effectively handle alarming
business unit situations such as sudden
Ability to supervise and maintain the overall increase in mortality rate,
quality aspect of operations in all business sudden decrease in quality
units or quantity of output.
Ability to undertake co-ordination with client
for operational activities
Ability to undertake corrective actions in case
of crisis such as sudden increase in mortality
rate, emergence of disease in farm etc.
Page 42 of 71
2.6. Skill Requirements and Skill Gaps in the Fruit and Vegetable
Processing Segment
2.6.1. Value chain in the Fruit and Vegetable Processing Segment
The following figure illustrates the composition of the value chain in the Fruit and Vegetable
Processing Segment:
Figure 25: Value chain within the Fruit and Vegetable Processing Segment
Output:
Output: * Beverages: Juices
*Fresh fruits *Jams, concentrates,
*Frozen fruits and squash
vegetables *Potato wafers or chips
*Canned fruits and *Pulp, slices
vegetables *Frozen and dehydrated
products
Farm produce Primary Secondary Distribution

processing processing
Grading Sorting Cutting Trimming
Mixing respective Temperature Bottling/cap

fruit concentrate / control ping Sterilisation Cooling, may Labeling
pulp/slice + sugar + wherever be washing
other ingredients applicable
Source: Primary research, Food and Agriculture Organisation, MOFPI, IMaCS Analysis
The handling of the product before and during processing is very important in the Fruit and Vegetable
Processing Segment. Uniform temperature control is enforced at all stages from the storage of the raw
product, through the processing stage and finally at the warehousing of the finished product either in
storage or on the shelf for maintaining the quality.
Various processing levels possible are as below:
• Minimal Processing: Minimally processed products increase the functionality of a food

without changing its fresh-like appearance and properties. This process involves washing,
cleaning and chilling followed by peeling, slicing and trimming.
Page 43 of 71
• Primary Processing: The focus is to retain freshness, flavour, texture and appearance of the
crop. This is accomplished through efficient harvesting, cleaning, chilling and storage of the
product. There is very little change from what is harvested to what the consumer purchases.
Cleaning is done to remove foreign particles which tend to enter the produce at farm or in
transportation.
• Secondary Processing: This encompasses several methodologies such as heat preservation,
refrigerated “ready to eat”, freezing, dehydration, extraction, preserves and fermentation. The
most common on-farm heat preservation methods are pasteurisation and
blanching. Refrigerated Production, Ready to Eat, Heat and Serve involve cleaning and
preparing the food item, packaging appropriately, labelling with storage instructions, dates of
expiry.
The following figure illustrates the profile of people employed in the organised sector in the Fruit and
Vegetable Processing Segment.
Page 44 of 71
Figure 26: Profile of people employed in the Fruit and Vegetable Processing Segment
Large size units:
MBAs/EngineersGraduates / Senior
persons with 7-8 years industry Management
experience
Graduates in food
technology, diploma holder Sales and Operations
/Persons with 5-7years industry Procurement Quailty head
marketing manager
experience/Short certificate
holders with experience
Graduates in food technology

Regional sales Lab
,diploma holder /Short certificate Supervisors
officers technologists
holders with experience
10th or 12th pass or people with Operators

some experience
No educational qualifications /
experience qualifications Helpers
required
2.6.3. Skill requirements and skill gaps in the Fruit and Vegetable Processing
Segment
hierarchical/reporting ‘levels’ in the Fruit and Vegetable Processing Segment.
Table 13: Skill Requirements and Skill Gaps in the Fruit and Vegetable Processing Segment
Operations Supervisor Good reporting/documentation skills Inadequate / restrictive

so as to be able to report the status of motivational skills
production, challenges faced and Inadequate documentation
recommendations to top level skills / not conversant with
management e-reporting / working on
Excellent communication skills so as computers
to effectively interact with workers
on daily targets, production
Page 45 of 71
techniques, quality issues, etc.

Ability to manage labour issues and
keep workmen motivated.
Ability to handle crisis and take
corrective actions in case of quality
issues such as mishandling of goods
in plant and output not conforming
with requirements
Floor level Ability to visually examine fruits / Inadequate knowledge of
vegetables and separate rotten fruits / operations resulting in
vegetables wastage
Basic reading/writing skills for Inadequate ability to
understanding the standard operating undertake dicing / slicing at
procedures the entry level
Ability to be conversant with basic Lack of interest and
measurements so as to understand knowledge in tracking the
customer requirements as given in productivity and improve
company documents the same over a period of
In the case of manual operations, the time
ability to appropriately size/dice as
well as the ability to make end
produce visually appealing is critical
Knowledge of procedures, sequence
of steps / machines and the ability to
adhere to the same at all times
Ability to operate machines and set
parameters such as temperature,
running time of machines specific to
process requirement.
Procureme - Excellent communication skills to be Inadequate knowledge and
nt able to interacts with farmers and ability to educate farmers on
conduct training/educate them about demand, advice on farming
the produce handling methods, pre- and wastage reduction.
processing techniques, the demand Inadequate communication
Page 46 of 71
driven choice of fruits/ vegetables to skills to be able to motivate

be grown etc. for them farmers for better quality
Ability to coordinate with sales and higher productivity
teams and farmers equally well so as
to close the communication loop and
help attain the required production
levels
Quality - Ability to conduct visual Inadequate ability to apply
examinations and identify technical expertise and
unacceptable colour / flavour of the procedural knowledge in
fruits procured actual work situations,
Ability to undertake chemical especially at the entry level.
analysis and assess PH levels vis-a-
vis the requirement, chemical
requirements and biological
requirements.
Sales and - Good communication, Inadequate ability to
marketing documentation and coordination articulate views
skills, especially important for Inadequate ability to
personnel working in companies that understand changing
have export operations customer preferences, and
As products in this segment (such as understand demand for new
juices, ketchup) differ with products.
ingredient and proportion of mix, it
is important to have adequate
knowledge of such parameters.
Ability to gauge the customer’s
requirement and design different
SKUs and innovative packaging for
fulfilment of varied customer needs
depending on income, consumption
level, etc.
Page 47 of 71
2.7. Skill Requirements and Skill Gaps in the Sugar Based Food Segment
The major products in the sugar based food segment are Biscuits and Chocolates.
2.7.1. Biscuits Sub-Segment
In the biscuits sub-segment, there are large players such as Britannia, Parle, ITC operating in the
market who follow fairly mechanised processes. Besides these players, there is also a large
unorganised segment. There are small, family-run bakeries operating in local regions and catering to
the daily demands of a locality; some of them expand into chains on a regional or evening some cases
at a national level also.
Value chain in the Biscuits Sub-segment
The following figure illustrates the composition of the value chain in the Biscuits Sub-segment:
Figure 27: Value chain within the Biscuits Sub-segment
Flour Flour Shifter

and scale
Dough After passing

Sugar Grinder
Preparation through Dough
Oven
and scale hopper, it is fed
into cut and lay
Syrup and scale unit Cooling
Mixer and scale

HVO
Scrap
Stacking for
packing
The raw material costs in the Biscuits Sub-Segment are high and the market is very competitive.
Operating margins are low and thus efficiency of production is very important in this business. The
process of biscuit making is highly mechanised in large companies. However, in local bakery shops,
all steps from mixing of sugar with flour and other ingredients, preparation of dough, cutting, feeding
in oven for baking and post baking handling are performed manually.
There are two varieties of biscuits which are produced by two different techniques:
Page 48 of 71
• Sweet variety: Products such as Milk Bikkis, Cream Biscuit, Coconut, Ginger Biscuit, Nice
Biscuit, FruitNut Biscuits etc.
• Semi sweet & fermented variety: Products such as Marie, Thin, Crack Jack, Cream Cracker,
Kaju Biscuit (Snax), Fifty-Fifty Biscuits etc.
Profile of people employed
The following figure illustrates the profile of people employed in the in the Biscuits Sub-segment.
Figure 28: Profile of people employed in the Biscuits Sub-segment

Large size units: MBAs /Post
graduates/graduates with
experience Unit
Manager
Smaller size units: Persons with 10
- 15 years industry experience
Personnel certified: Graduates Production Quality /

with (degree in food technology Procurement
Head Manager Testing Clerical staff
preferred),Diploma holders+ 7-8
Graduates(Science Food
preferred), Personnel with Line Incharge / technologists
certification /dilpoma courses+ 3-4 Supervisors / Analysts
Short term certificate courses/ 10 Specific machine

th-12 th pass with 1-2 years of Machine operators (e.g. oven Mechanical /
experience Operators operators in Biscuit electrical engineers
making)
Page 49 of 71
Skill requirements and skill gaps
hierarchical/reporting ‘levels’ in the Biscuits Sub-Segment.
Table 14: Skill Requirements and Skill Gaps in the Biscuits Sub-Segment
Level Skills required Skill gaps

Unit Manager Ability to oversee procurement, operations, Inadequate communication
dispatch, as well as undertake initiatives for skills and inadequate ability
increase in efficiency to manage the team of
Ability to propose new investment decisions for the personnel working with them
plant or new changes which should be introduced
to reap benefits in the long term
Ability to manage labour issues, vendor/customer
relationship management issues which cannot be
handled by supervisors / managers
Quality Staff Ability to test the material with respect to specified Inadequate ability to apply
quality parameters and reject raw material that theoretical knowledge while
does not meet quality specifications conducting quality tests /
Ability to ensure that dough is prepared with the checks
correct proportion of raw materials – this is critical,
since different raw materials from different sources
may have different moisture levels
Ability to specify the temperature settings for oven
depending on the product being manufactured
Ability to test the end product for quality of crust
and colour after baking
Ability to check the quality of packing material and
ensure that requirements are met
Supervisor Good communication skills (spoken and written) so Inadequate ability to guide
as to be able to coordinate with personnel within workers on the job by giving
the company and outside the company suitable inputs and training
Ability to supervise daily production activities and on aspects related to setting
streamline processes for increasing efficiency of machines, operations, etc.
Operator Knowledge of machine related details such as Inadequate ability to
temperature settings, speed at which machine as to understand and use different
Page 50 of 71

be adjusted, total time setting, etc. settings of time, temperature
Knowledge of the basics of weighing / scaling on different machines for
Basic knowledge of measurements such as different biscuit products
conversion between millimetres and centimetres Inadequate read / write skills
Ability to use printing machines – this includes leading to problems in
skills such as the ability to feed in the MRP, the understanding verbal/ written
ability to batch print consignment-wise details in communication about
the machine, the ability to ensure that all such production schedule,
details appear in the right place and in right format specifications, etc.
on the biscuit packet, etc.
Ability to understand and follow ISO norms – eg.
assigning batch number, stocking etc. should be
according to the specifications
Ability to execute standard specifications relating
hygiene while handling raw material input/ work
in progress
Basic read/write skills and spoken language skills
Oven Specific knowledge of technical aspects such as Inadequate technical
operators temperature settings, turbulence settings, etc. and knowledge leading to
the ability to follow specifications inefficiency of operations
Ability to take special care of burner working and
maintenance
2.7.2. Chocolate Sub-segment
Coco, which is one of the basic raw materials for chocolate, is imported in India for local chocolate
and other allied products’ manufacturing needs. While the coco from Ghana is of the best quality, it is
expensive and is not used in India; companies enjoying economies of scale such as Cadbury’s use
European coco and it is very commonly used in India. The coco from Malaysia is used in local
chocolate manufacturing units catering to specialised customer needs.
Page 51 of 71
Value chain in the Chocolate Sub-segment
The following figure illustrates the composition of the value chain in the Chocolate Sub-segment:
Figure 29: Value chain within the Chocolate Sub-segment
Coco Bean Spinning to

cleaning, make chocolate
Roasting, paste
Cracking,
Refining
Preservatives Moulding
Conching, Freezing
Inspection,
Tempering
Stacking for
Sugar Bulk shipments
packing
for uses such as in
ice cream coatings
Skimmed
milk
Source: Primary Research, The Chocolate factory website, IMaCS Analysis
Coco, after roasting, is processed in two forms: Powdered form (Coco powder) and Butter form (Coco
Butter). These are both mixed to obtain a colourless, odourless mixture which is fed in a spinning
machine where coco is rotated at very high speeds at controlled temperature. The paste thus obtained
is mixed with other ingredients, after which tempering is performed. This is followed by moulding,
freezing and packaging.
In chocolate making industry, local players have a capacity around one-tenth the capacity of large
players such as Nestle and Cadbury’s. The customer base they have is very specialised (usually large
sweet shops) who contract out the manufacturing and get it branded according to their requirements.
Skill requirements and skill gaps
hierarchical/reporting ‘levels’ in the Chocolate Sub-segment.
Table 15: Skill Requirements and Skill Gaps in the Chocolate Sub-segment
Quality Ability to take samples of input and reject Inadequate ability to correctly
personnel / non-conforming produce conduct tests for new kind of
managers Ability to constantly check output to make chocolates
sure that texture consistency and proportion
Page 52 of 71
mix is maintained.
Supervisor Ability to execute hygiene requirements Inadequate knowledge of ISO
effectively (wearing mask, gloves, etc.) processes and compliance
Ability to identify ISO norms, understand Inadequate supervisory skills
the same, assign batch numbers, undertake and team management skills.
stocking. according to the specifications
Good reading/writing skills for co-
ordinating within the company and outside
the company
Good team management skills.
Operator Knowledge of standard operating Ignorance about “chocolate” as
procedures such as temperature settings, a consumable
selection of parts which can be touched and Inadequate speed of packing in
parts which cannot be handled. comparison with other
Knowledge of the sequence of machine countries / automatic methods
usage depending on the flow of raw material (productivity related issues)
or work in progress, as applicable in Inadequate read / write skills
particular products
Understanding of the safety norms
Ability to understand specifications of
colours, ribbons, etc. to be used while
packing for decoration as per client’
requirement.
Ability to make the packed product look
aesthetic and attractive
Knowledge of the paper to be used to
decorate the chocolate with specific patterns
in some cases
Basic read/write skills and spoken language
skills
Page 53 of 71
2.8. Skill Requirements and Skill Gaps in the Fish Processing Segment
2.8.1. Value chain in the Fish Processing Segment
The following figure illustrates the composition of the value chain in the Fish Processing Segment:
Figure 30: Value chain within the Fish Processing Segment
Chlorinated
water
Product is
received
Sorting and Preparation- Inspection and

butchering, Product
weighing trimming processing –
scaling, skinning
and evisceration pickles etc.
Solid
Off -
waste,
specification
rubbish Cuttings, skins, products
bones, viscera, trimmings, etc.
spoiled Further processing-
material, blood freezing, canning,
bottling (some other
wastes)
Either fresh after

inspection
Or frozen /canned
after processing;
Packing and dispatch
Source: Primary Research, IMaCS Analysis
• Material Reception and Preparation10: Raw materials are received at the fish
processing facility from a commercial fishing vessel or fish farm. For some fish species (such
as white fish), gutting, cleaning, and head removal can take place at sea on board fishing
vessels to maintain optimal quality. During unpacking, fish are subject to quality control
(including traceability documentation). Fresh/raw fish is washed and graded to separate any
portion of the catch that does not meet standards for quality and uniformity. Frozen fish is
10
Source: IFC publication on EHS guidelines in fish processing
Page 54 of 71
thawed before washing and grading. The prepared raw material is then chilled for storage and
re-iced.
• Product Processing: Skinning and cutting is performed to remove the edible parts of the fish
and reduce the size to the desired portions. The fish are then transported to cutting tables
where evisceration takes place (e.g. the heads, tails, and inedible parts are removed). The
offal11 is collected and diverted to the by-product line. At this stage, any valuable by-products
(e.g. liver), are collected and sent for separate handling. After evisceration, the cleaned fish
products are filleted at the cutting tables and washed. Evisceration generates significant
amounts of solid waste, and proper disposal of these wastes are an area of concern from
environmental perspective.
• Product Finalisation: Cut fish and shellfish product is preserved through a variety of
processes and may be consumed in the primary form, either raw or cooked. They may also
be further processed to produce fish or shellfish-based foods, such as moulded products or
prepared dishes. Preservation methods typically used include chilling and freezing, canning,
brining and salting, fermenting, drying, and smoking.
Fish processing is a largely unorganised industry in India with around 80-90% personnel engaged in
small/medium sized units.
2.8.2. Skill requirements and skill gaps in the Fish Processing Segment
hierarchical/reporting ‘levels’ in the Fish Processing Segment.
Table 16: Skill Requirements and Skill Gaps in the Fish Processing Segment
Fisher men Ability to undertake fish breeding and rearing – this Inadequate knowledge of
is a process with several time bound operations processes – e.g., fishermen
such as regular feeding and cleaning who usually work on
Ability to clean the fish , which includes processes removing the internal
such as cleaning, removing internal organs organs are not aware of
Adequate spoken language skills so as to correct procedures.
understand instructions from supervisors Traditional methods which
Ability to undertake waste disposal in a hygienic are usually used are
manner unhygienic and do not yield
adequate quality results
11
Offal: viscera and trimmings of a butchered animal often considered inedible by humans
Page 55 of 71
Inadequate knowledge of
fish breeding and rearing
processes
Inadequate sensitivity to
environmental issues, thus
leading to poor hygienic
conditions.
Supervisor Ability to ensure transport of raw / processed fish Inadequate knowledge of
in a controlled atmosphere and minimise wastage. cold chain networks for
This also requires understanding of cold transport of fish within and
chains/refrigeration outside the country
Ability to supervise daily operations and monitor Inadequate technical
performance at all times knowledge about the new
Ability to communicate with uneducated workers machines and the associated
and train them in production procedures, aspects of maintenance.
compliance to quality.
2.9. Skill Requirements and Skill Gaps in the Beverage Segment
2.9.1. Value chain in the Beverage Segment
The following figure illustrates the composition of the value chain in the Beverage Segment:
Figure 31: Value chain within the Beverage Segment12
Preparation of Simple Final syrup Bottling Placing in

simple syrup syrup+ +carbonated Corking crates
(sugar and concentrate water Labeling
water)
Bottle sanitation
process (on
simultaneous
lines)
Syrup is prepared as a solution of sugar and water stirred well in a mixing machine in a highly
controlled setting. Concentrates are then added to the ‘simple’ syrup in order to prepare the finished
12
Paper Publication: Fuzzy Logic Control of the Syrup Mixing Process in Beverage Production by Philip
Babatunde OSOFISAN
Page 56 of 71
syrup. The composition of the concentrate determines the beverage. The resultant syrup is then diluted
with carbonated water and bottled. In case of alcoholic beverages, fruits and/or grains are fermented
under controlled atmosphere to yield the beverage. Prior to the bottling of the carbonated/alcoholic
beverages, the bottles are subjected to thorough a sanitation processes (soaking, heating, washing,
rinsing and drying). After these processes, the beverage is packed into bottles of various volumes.
Subsequently, the bottles are corked, labeled, and sorted into crates.
The following figure illustrates the profile of people employed in the in the Beverage Segment.
Figure 32: Profile of people employed in the Beverage Segment
Large size units:

MBA'sEngineers/Graduates / Senior
persons with 7-8 years industry Management
experience
Graduates ,diploma holder Operations

/Persons with 5-7years industry Procurement Sales and marketing manager Quailty head
experience
Graduates ,diploma holder /Short Regional

certificate holders with sales Supervisors Lab
experience officers technologists
10th or 12 th pass or personnel

with some experience/diploma Area sales Operators
holders officer
2.9.3. Skill requirements and skill gaps in the Beverage Segment
hierarchical/reporting ‘levels’ in the Beverage Segment.
Page 57 of 71
Table 17: Skill Requirements and Skill Gaps in the Beverage Segment

Operations Supervisor Adequate reporting/documentation Inadequate knowledge of
skills concentrates, proportion, etc.
Good communication skills to Inadequate people
understand and communicate the management skills
requirements of production process Inadequate knowledge of
to workers
quality standards/ Hazard
Ability to manage labour-related
Analysis and Critical
issues and keep workmen /
Control Points (HACCP)
operators motivated
Ability to supervise routine and
breakdown maintenance
Knowledge of quality standards/
Hazard Analysis and Critical
Control Points (HACCP)
Operator Basic read/write skills for Inadequate knowledge of
understanding the standard standard operating
operating procedures procedures leading to
Ability to be conversant with basic mishandling of machines
measurements so as to understand especially at the entry level
customer requirements
Knowledge of procedures, sequence
hygiene related aspects
of steps / machines and the ability
to adhere to the same at all times
compliance to quality.
Ability to operate machines and
ensure correctness of machine
parameters (such as temperature)
during processing
Quality - Ability to undertake chemical Inadequate testing skills
analysis and assess the proportion Inadequate knowledge of
of concentrates, as well as other requirements under various
chemical and biological quality standards/FPO/etc.
requirements
Knowledge of safety guidelines and
requirements under FPO, and as
required by ISO processes/HACCP
Page 58 of 71
2.10. Emerging Trends in the Food Processing Sector in India13
2.10.1. Emerging Trends
• Untapped consumer markets: Majority of the disposable income of a household is spent on

food consumption. Increased economic growth, evolving food-consumption patterns, a higher
standard of living due to rising disposable incomes and a trend towards nuclear dual-income
families, all present considerable potential for growth in spending on food consumption.
Changing lifestyles and increasing consumer awareness, due to increasing proportion of
working women and the emergence of nuclear/double income families, especially in urban
areas is also changing food consumption patterns. The number of households in the
consuming middle class is set to increase during the next couple of years. Further, this would
translate to a consuming class of more than 150 million rural households by 2010 - more than
half of India's overall estimated middle class by this time. The boost in the consumption
levels of rural India would open new and unexplored markets for food processing companies
in India.
• Increasing foreign investments: There has been significant inflow of Foreign Direct
Investment (FDI) into the Food Processing Industry. The FDI in Food Processing Industry in
June 2007 stood at $1,282.06 million. Progressive Government policies/measures to
encourage the FDI in India are expected to further improve this situation in future.
• Product innovation The Indian market is witnessing a revolutionary change and multinational
companies are introducing globally known products in the Indian markets. For example,
there has also been an increase in both, the number of players in the frozen products segment
and the consumption of frozen products due to changing lifestyles. Attempts have been made
to produce and market a few frozen products such as individually quick frozen fruit and
vegetable products and ready-to- eat foods. Sizeable quantities of meat, poultry and marine
products are being exported from the country in frozen form. India has the potential, with its
diverse and rich resources, to emerge as the fore-runner in meeting the ever increasing global
demand for all types of frozen food products including culinary herbs, prawns, ice-creams and
frozen salads and desserts, ethnic food delicacies such as frozen samosas, paranthas etc. The
market players have also started focusing on herbal and organic products.
13
Source: ‘Hindu’, ‘Times of India’, Food and Agriculture Organisatrion, MOFPI inputs, Food 360 Degrees,
Fruit and vegetable cluster processing, Fruit and beverage news
Page 59 of 71
• Infrastructure: In a bit to boost the food sector, the government is working on agri-zones and
the concept of mega food parks. About 30 such mega parks are coming up across the country
in various cities to attract Foreign Direct Investment (FDI) in the Food Processing sector.
MOFPI is seeking to double India's share in the global trade of food produce to about 3% in
the next eight years, and the setting up of these food parks is an important initiative in this
direction. The Government has also announced a 15-25% capital subsidy scheme for
investment by private players to facilitate the construction of rural go-downs, thus increasing
the role of PPP in the Food Processing sector. The Government has also been increasing
investments in the areas of irrigation, storage and post-harvest infrastructure and connectivity
to support the Food Processing sector in India. Private participation is increasing across the
various segments of the agri-value chain, and corporate are taking the lead in terms of
contract farming initiatives. Contract farming by corporates would not only yield better prices
to farmers but also help them access superior farming techniques, better management and risk
mitigation methods. The network of cold chain facilities is also being developed. For
example, chilling infrastructure for milk, and new modern abattoirs for the meat processing
sector are being developed. The Container Corporation (CONCOR) is also setting up a
countrywide network of over 14 cold-chain complexes for horticulture in Delhi, Mumbai and
Bangalore among other places.
• Equipment: The Food Processing sector in India is witnessing a great change as regards
equipment. Various new equipment have been introduced or are planned to be introduced in
the Indian market by both the international and the national players. For example, US-based
Daimler Industry has launched KleenJet, especially for the food processing industry. The
machines use high steam temperatures and vacuum extraction to tackle a variety of cleaning
tasks. Siegling, a major player in industry has launched “Series 6”, a new product in the
modular belt range, specially designed for particularly hygiene-sensitive areas.. Retail giants
such as Reliance Retail, Aditya Birla Retail (ABR), Wal-Mart, Mahindra Retail and Big
Bazaar are planning to source world class cold storage containers.
• Technology: Large MNCs are tapping into the Organised Retail sector through the cash and
carry route. The Indian market is witnessing innovative and technologically advanced
products. For example, the Central Rice Research Institute (CRRI) has launched “Aghani
Bora”, which is ready-to-eat rice. There has been a growing demand for machines to pack
pre-cooked food (Indian dishes) in restorable pouches. Modified atmospheric and eco-
friendly/recyclable packaging is breaking new grounds. It is one of the widely used
technologies in the West, which is gaining popularity in India as well. Retort packaging,
Page 60 of 71
laminates and bulk packaging are witnessing growth in the Indian market. For edible oils,
PET packaging is becoming popular in Indian Retail Industry because of its convenience to
use.
• Schemes to support the unorganised sector: Various schemes and laws have been put in
place to support the unorganized sector. For example, the Dairy Venture Capital Fund
(DVCF) scheme aims at generating self-employment and creating infrastructure mainly in the
unorganised sector for making improvement in quality and to help in bringing a significant
portion of unorganised sector under the ambit of organised sector. During the last few years,
Food Processing market in India has witnessed new food laws. Currently there are more than
twenty Indian laws relating to food, which are administrated by a number of government
ministries and departments. The most important food laws are: Prevention of Food
Adulteration Act (PFA) of 1954 and the PFA Rules of 1955, The Fruit Products Order, 1955,
The Standards of Weights and Measures Act, 1976, and the Standards of Weights and
Measures (Packaged Commodities) Rule, 1977, Meat Food Products Order, 1992, Milk and
Milk Products Order, 1992, and, The Food Safety and Standards Act, 2006. With emergence
of single window clearance system the law complications be reduced which will boost exports
and private (FDI and national players) in the food processing sector.
• Emergence of Organised Retail in India: The market for branded foods across different
segments of the industry is undergoing rapid growth in India. Food and Groceries form the
biggest category of the retail pie, accounting for 75% of the total. However, this category has
the lowest organised retail penetration of 1%, which indicates the present gap and
opportunities available for the Organised Retail.
Page 61 of 71
2.11. Projected Industry Size and Human Resource Requirements
2.11.1. Projected Industry Size
The Food Processing Industry is expected to grow from Rs. 3,600 billion in 2008 to over Rs. 15,600
billion by 2022, a CAGR of about 11%14.
Table 18: Projected size of Food Processing Industry till 2022 – Rs. billion
Sector 2008 2012 2018 2022 CAGR

Fruit and Vegetable 159 259 543 887 13.1%
Processing
Food Grain Milling 1,230 1,663 2,613 3,532 7.8%
Dairy Products 572 881 1,686 2,597 11.4%
Meat and Poultry 369 675 1,673 3,063 16.3%
Processing
Fish Processing 139 180 265 343 6.6%
Bread and bakery 714 1,137 2,288 3,646 12.4%
Alcoholic beverages 101 171 380 645 14.2%
Aerated water/soft drinks 338 451 693 923 7.4%
Total 3,622 5,419 10,140 15,638 11.0%
Source: ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis
While the share of Food Grain segment would decline, Meat and Poultry Processing, and Bread and
bakery products would gain maximum in the overall processed food market.
14
ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis
Page 62 of 71
Figure 33: Changing structure of the Food Processing Industry
100%
9% 8% 7% 6%
90% 3% 4% 4%
3%
80% 20% 21% 23% 23%

70% Aerated water/soft drinks
4% 3% 3% 2% Alcoholic beverages
60% 10% 12% 16% 20% Bread and bakery
50% Fish Processing
16%
16% Meat and Poultry Processing
40% 17%
17% Dairy Products
30%
Food Grain Milling
20% 34% 31% Fruit and Vegetable Processing
26% 23%
10%
4% 5% 5% 6%
0%
2008 2012 2018 2022
Source: ASI, NSSO, MOFPI Vision 2015, and IMaCS analysis
About 67% of the value of output generated originates from the Organised Sector. Accordingly,
about 33% of the output of Food Processing is in the Unorganised Sector in 2008. By, 2022, the
Organised Sector is expected to account for 80% to 90% of the output.
2.11.2. Projected Human Resource Requirement
For the projected growth in the Food Processing Industry, it is expected that the requirement of human
resource would increase from about 8.5 million in 2008 to about 17.8 million in 2022, an incremental
human resource requirement of about 9.3 million persons15 till 2022.
Table 19: Projected human resource requirement for the Food Processing Industry (in ‘000
persons) till 2022
Sector 2008 2012 2018 2022 Incremental

(in ‘000
persons)
Fruit and Vegetable 140 183 273 357 216
Processing
15
ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis
Page 63 of 71
Sector 2008 2012 2018 2022 Incremental

(in ‘000
persons)
Food Grain Milling 2,427 2,618 2,932 3,162 735
Dairy Products 1,126 1,385 1,887 2,320 1,194
Meat and Poultry 658 961 1,697 2,479 1,821
Processing
Fish Processing 216 223 234 242 25
Bread and bakery 3,420 4,348 6,235 7,928 4,508
Alcoholic beverages 390 528 834 1,131 741
Aerated water/soft 153 163 178 190 36
drinks
Total 8,531 10,409 14,271 17,808 9,278
Source: ASI, NSSO, MOFPI Vision 2015, IAMR study on Food Processing Sector, and IMaCS analysis
It is expected that Organised Sector would contribute to about 20% to 25% of employment, while a
large portion of the employment would be generated in the Unorganised Sector in the Food
Processing industry.
A large portion of the incremental requirement would be in the Bread and Bakery sector, followed by
Meat and Poultry Processing and Diary Products.
The function-wise requirement for human resource is presented in the table below.
Table 20: Function-wise requirement of human resource (in ‘000s) till 2022
Function Incremental
human resource
requirement (‘000
persons)
Procurement 928
Testing and Quality 1,856
Production 5,103
R&D 93
Storage 186
Others (sales and other support functions) 1,113
Total 9,278
Source: IMaCS analysis
The major centres in India where this employment generation would take place are Andhra Pradesh,
Tamil Nadu, Uttar Pradesh, Kerala, Maharashtra, and Karnataka.
Page 64 of 71
Figure 34: Share of various states in employment in the Food Processing Industry
Others, 8.3%
West Bengal, 4.8%
Andhra
Pradesh, 14.1% Assam, 4.7%
Uttar Gujarat, 5.9%

Pradesh, 12.0%
Tamil Haryana, 3.3%
Nadu, 11.2%
Karnataka, 6.0%
Punjab, 7.7% Kerala, 11.9%

Maharashtra, 7.8% Madhya
Pradesh, 2.3%
Source: ASI and IMaCS analysis
2.11.3. Available supply of human resource and demand-supply gap
As per the study on ‘Assessment of Requirement of Food Technologists, Managers and Entrepreneurs
for the Food Processing Industries’ conducted by the Institute of Applied Manpower Research
(IAMR), the following table is indicative of the capacity available determining the supply of skilled
human resource.
Table 21: Available Skilled Human Resource Supply in Food Processing on an

Annual Basis
Category 10th Plan Period 2008 to 2014

Post Graduates (PG) in Food Technology 1,000 1,700
Graduates in Food Science/Technology 900 1,530
Graduates in Food Science and Quality 600 1,020
Control
Diploma 600 1,020
Certificate (ITI/ITC) 2,500 4,250
Short-term courses 6,400 10,880
Total 12,000 20,400
Source: Assessment of Requirement of Food Technologists, Managers and Entrepreneurs for the Food
Processing Industries’, IAMR
Page 65 of 71
While, the overall requirement for skilled human resource in the Food Processing sector is much
larger, we have considered the organised sector to illustrate the demand-supply gap. The following
table presents the demand for skilled human resource across different educational qualification for the
organised sector alone.
Table 22: Annual Demand for Skilled Human Resource in Organised Sector in Food Processing
Industry
Category Required
Annual
Demand
Food Technologists – PG 2,384
Food Technologists 5,363
Diploma 4,768
ITI/ITC 4,768
Short-term course trained personnel with 95,351
education below 10th/12th standard
Total 112,633
While there are gaps in terms of excess of demand over supply in the organised sector at all levels, the
gap is maximum when considering the demand for ‘those trained by short-term courses’ with low
educational qualification (below 10th/12th standard) where there is a required demand for about 1
lakh trained persons annually against a supply of over 10,000 persons. This requirement will increase
to over 5.3 lakh if the unorganised sector is also taken into account.
The following table details the incremental human resource requirement for those trained by
modular/short-term training programmes across different segments in the Food Processing Industry
till 2022. This table also specifically mentions the demand in the organised sector.
Table 23: Incremental human resource requirement for persons trained through short-
term/modular training initiatives in Food Processing Industry till 2022 (in ‘000s)
Sector Total demand Demand in

organised sector
Fruit and Vegetable Processing 173 31
Food Grain Milling 588 106
Dairy Products 955 172
Meat and Poultry Processing 1,457 262
Fish Processing 20 4
Page 66 of 71

organised sector
Bread and bakery 3,607 649
Alcoholic beverages 593 107
Aerated water/soft drinks 29 5
Total 7,422 1,335
The following table details the incremental human resource requirement for those trained by
modular/short-term training programmes across different segments in the Food Processing Industry on
an annual basis (i.e., annual requirement). This table also specifically mentions the demand in the
organised sector.
Table 24: Incremental human resource requirement for persons trained through short-
term/modular training initiatives in Food Processing Industry – Annual Requirement (in ‘000s)

organised sector
Fruit and Vegetable Processing 12 2
Food Grain Milling 42 8
Dairy Products 68 12
Meat and Poultry Processing 104 19
Fish Processing 1 0
Bread and bakery 258 46
Alcoholic beverages 42 8
Aerated water/soft drinks 2 0
Total 530 95
As mentioned earlier, while the annual demand for such persons trained through short-term/vocational
programmes is about 5.3 lakh in the Food Processing Industry, it should be noted that about 1 lakh is
the requirement in the organised sector in itself.
Page 67 of 71
2.12. Skill Pyramid
The profile of human resource in the Food Processing Industry can be viewed in the form of the Skill
Pyramid.
Figure 35: Skill Pyramid for the Food Processing Industry
1%-2% Skill Level 4 (skills which are

highly specialised involving
research and design)
Skill Level 3 (skills which require long
8%-9% drawn preparation as demonstrated by
acquisition of degrees, and involve highly
technical or commercial operations)
9%-10% Skill Level 2 (skills which require technical

training inputs, knowledge of complex
operations and machinery, skills of
supervision)
Skill Level 1 (skills which can be acquired
80% to 81%
with a short/modular and focussed
intervention and thereby enhancing
employability of those with minimal
education)
It is to be noted that a large proportion of the workforce falls in the lower portion of the pyramid
which would be the source of employment generation in a large scale.
2.13. Possible focus areas for Skill Building
While the earlier sections indicate the need for additional capacity and skill building at all levels, such
as Food Technologists, Quality Control, Techno-Managerial, etc., a vast majority of the requirement
would arise from the need to build skills at the lower portion of the workforce –
operators/workers/packaging and assembly line workers.
The following table denotes sector-specific requirements where skill building should be concentrated
through short-term/modular/vocational courses.
Page 68 of 71
Table 25: Possible focus areas for Skill Building
Segment in Food Processing Areas for Skill Building

Industry
Food Grain Milling Industry Operation of power machine used for milling (knowledge of
speed of operation, feeding of input, collecting output)
Handling of output while packing
Packing of gunny bag (stitching, labelling)
Bakery-related Roasting/swelling to make breakfast foods
Mixing
Preparing flour and dough making for bread, biscuits, cakes
etc.
Making of Pappads, masala, etc.
Packaging and labelling
Diary Products Handling of milk after mulching
Cold storage and transportation
Manufacture of ice-creams and sweets
Meat and Poultry Processing Slaughtering
Safe disposal of waste
Usage of by-products
Fish Processing Preservation techniques – drying/radiation
Manufacturing of fish meal
Processing in semi-cooked and RTE forms
Fruit and Vegetables Correct methods of sun-drying, or methods of artificial/
and Edible Oils radiation preservation
Mixing in right proportions
Preparation of concentrates, juices, squash
Edible oil manufacture
Preparation of sauces, jelly, marmalades.
In addition to the above, the following are generic skills should also be the focus for skill building in
the Food Processing sector:
Packaging (in Cans, Poly-packs)

Labelling
Working in hygienic conditions
Operation of food processing equipment
Page 69 of 71
Good Manufacturing Practices

Compliance to quality and safety
Compliance to ISO, FAO, HACCP
Basic maintenance of equipment
Soft skills – ability to read simple manuals, standard procedures, communicate with
supervisors and team, basic behavioural skills (timeliness, etc.).
The above are various areas where skill development initiatives can focus to cater to the large demand
that exists in this sector.
Page 70 of 71
This report has been prepared by ICRA Management Consulting Services Limited (IMaCS).
IMaCS is a multi-line management and development consulting firm headquartered in India. It has an
established track record of over 15 years in consulting across various sectors and countries. IMaCS
has completed over 950 consulting assignments and has worked in over 30 countries across the globe.
Through the process of carrying out several assignments over the last decade and half, IMaCS has
accumulated considerable analytical and consulting expertise, backed by the following capabilities:
• Deep understanding of policy formulation.

• Extensive and organised database on several sectors.
• Knowledge of key factors of success in different projects and programmes.
• Ability to research emerging trends in the economy, as well as in specific sectors.
• Insight into different programmes and organisational processes.
• Ability to carry out economic analysis, build quantitative and financial models to project future
performance and identify imperatives.
• Ability to identify the various types of risks and suggest appropriate strategies to mitigate the
same.
The Education and Skills practice at IMaCS focusses on identifying skill gaps, mapping future skill
requirements, and formulating strategies to address them. Our service offerings encompass diagnosis,
design and implementation of education and skill development interventions for government and
private sector.
R. Raghuttama Rao M. Sairam

Managing Director Head – Process Consulting
IMaCS IMaCS
4th floor, Electric Mansion 5th floor, Karumuttu Centre
Appasaheb Marathe Marg, Prabhadevi 634, Anna Salai, Nandanam,
Mumbai – 400 025 Chennai – 600 035
Tel: 91 22 3047 0047, Fax: 91 22 3047 0081 Tel: 91 44 2434 0043, Fax: 91 44 2434 3663
Email: raghuttama.rao@imacs.in Email: sairam.m@imacs.in
Page 71 of 71
National Skill Development Corporation
D-4, Clarion Collection, (Qutab Hotel)
Shaheed Jeet Singh Marg
New Delhi 11 0 016
Tel : 011 46 56 0414
Fax : 011 4656 0417
Email : nsdc@nsdcindia.org
www.nsdcindia.org

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Disclaimer for the Skill Gap Report:

1. Environment Scanning and Competitiveness of Food Processing Industry ............................ 5

1.1. Introduction ............................................................................................................................. 5

1.2. Global Food Processing Industry ............................................................................................ 5

1.3. Overview of India’s Food Processing Industry ....................................................................... 7

1.4. Fruits and Vegetables ............................................................................................................ 10

1.5. Dairy ..................................................................................................................................... 12

1.6. Edible Oils ............................................................................................................................ 13

1.7. Grain-based products ............................................................................................................ 13

1.8. Growth segments .................................................................................................................. 13

1.9. Value chain in the Food Processing Industry ........................................................................ 15

1.10. Demand Drivers ................................................................................................................ 16

1.11. Key Success Factors and Risk Factors .............................................................................. 18

1.12. Outlook for the Food Processing Industry ........................................................................ 19

2.12. Skill Pyramid .................................................................................................................... 68

2.13. Possible focus areas for Skill Building ............................................................................. 68

Figure 1: Major markets for sale of Processed Food .............................................................................. 6

Table 1: Leading companies in F&V Processing .................................................................................. 10

1. Environment Scanning and Competitiveness of Food

1.2. Global Food Processing Industry

1.3. Overview of India’s Food Processing Industry

Figure 3: PFCE in Food in India (Rs. billion)

Source: CSO and IMaCS analysis

Figure 4: Major Segments in the Food Processing Industry

Bread and Food Grain

Source: Annual Survey of Industry (ASI), MOFPI and IMaCS analysis;

Figure 5: Level of processing in India in select segments

Milk and Diary 35%

Fruits and Vegetables 2%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: MOFPI and IMaCS analysis

Figure 6: Exports, growth, and share of different APEDA products

Source: APEDA and IMaCS analysis

Figure 7: Major food processing centres in India

Source: ASI and IMaCS analysis

1.4. Fruits and Vegetables

Some of the major companies in this segment are as follows:

Table 1: Leading companies in F&V Processing

Figure 8: Major product categories in F&V

Source: FICCI Knowledge Paper on ‘Processed Food and Agribusiness’

The value chain for this segment is illustrated as follows.

Figure 9: F&V Value Chain

Source: Rabo India Finance Limited

1.6. Edible Oils

1.7. Grain-based products

1.8. Growth segments

Table 2: Profile of major growth segments

Segment Market Size Expected Major Products Comments

Segment Market Size Expected Major Products Comments

The valuue chain speccific to Meatt and Poultryy is detailed below.

Figure 13: Changing profile of India’s household income

Million Households Annual Income (Rs.)

Source: NCAER and IMaCS analysis

 Fruits and Vegetables:

1.11. Key Success Factors and Risk Factors

Segment Key Success Factors Key Risk Factors

Segment Key Success Factors Key Risk Factors

1.12. Outlook for the Food Processing Industry5

The major growth segments are likely to be:

 F&V, growing at 13%

2.1. Current Employm

The Foood Processinng Sector em

Fruits and Vegetables:

F&V, growing at 13%