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December 2009
Executive Summary
Food processing industry in India is valued at USD XX bn and is growing at a a% annual rate
Diary products, fruits & vegetables and meat processing are the most attractive segments
Market Government of India is leading from the front to ensure multi-fold growth in this segment
Exports in food processing are expected to grow further in the near future
Drivers:
PLE
– Increasing consumer spend on
Challenges:
– Lack of integrated supply chain and scale
Drivers &
Challenges SA
processingM
processed foods
– Competitive edge in food
– Government support
of operations
– Limited use of technology in food
processing
– Low level of penetration in domestic
– Growth in food processing exports market
– Adoption of contract farming – High taxes on branded agricultural
– Increasing food retailing in India products
– Growth in terminal markets
The sector is highly competitive with many foreign players and large unorganized segment
Major Domestic Players Major Foreign Players
Competition •Company 1 •Company 3 •Company 5 •Company 7
•Company 2 •Company 4 •Company 6 •Company 8
PLE
Fruits & Vegetables
Raw fruits and vegetables, pulps, canned fruits, juices and
pickles
Food Processing
SAM
Meat & Poultry
Fisheries
Cattle, buffaloes, sheep, pigs and poultry
E
•India is one of the top producers of milk, V
L
pulses, sugarcane and tea in the world 80 U
MP
•Government has taken major initiatives
towards ensuring multi-fold growth in this
60
40
20
S
•T are coming up in India to integrate the
supply chain and promote food processing
0
2009 2010e
Market Penetration of Segments
2011e 2012e
Segment 5 g%
Source:
Drivers
Increasing consumer spend on
processed foods
Challenges
Competitive edge in food processing Lack of integrated supply chain and
scale of operations
Government support Limited use of technology in food
processing
Growth in food processing exports Low level of penetration in domestic
market
Adoption of contract farming High taxes on branded agricultural
products
Increasing food retailing in India
Vision 2015
Trends
E
Segment 1
a%
L
Competitive pricing, expansions, aggressive advertising
P
campaigns and efficient packaging are the strategies used Segment 4 d%
by firms to gain market share
c%
AM
• More players are planning to tap the mass market in
basic foods like fruits & vegetables, meat & poultry
and fisheries
Food Processing Units in Organized Sector S
Segment 3
Flour Mills D1
Fish Processing D2 Segment A f%
Food and Vegetable D3
Segment B g%
Meat Processing D4
Sweetened and Aerated Water D5 Segment C h%
Milk Products D6
Segment D i%
Sugar Mills D6
Solvent Extract D7 Segment E j%
Rice Mills + Modernized Rice Mills D8
Segment F k%
Source:
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