India is the universe ‘s 2nd largest manufacturer of nutrient following to China, and has the potency of being the biggest with the nutrient and agricultural sector. The entire nutrient production in India is likely to duplicate in the following 10 old ages and there is an chance for big investings in nutrient and nutrient processing engineerings, accomplishments and equipment, particularly in countries of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & A ; Vegetables, Fisheries, Milk & A ; Milk Products, Meat & A ; Poultry, Packaged/Convenience Foods, Alcoholic Beverages & A ; Soft Drinks and Grains are of import sub-sectors of the nutrient processing industry. Health nutrient and wellness nutrient addendums is another quickly lifting section of this industry which is deriving huge popularity amongst the wellness conscious.A
India is one of the universes major nutrient manufacturers but histories for less than 1.5 per cent of international nutrient trade. This indicates huge range for both investors and exporters. Food exports in 1998 stood at US $ 5.8 billion whereas the universe sum was US $ 438 billion. The Indian nutrient industries gross revenues turnover is Rs 140,000 crore ( 1 crore = 10 million ) yearly as at the start of twelvemonth 2000. The industry has the highest figure of workss approved by the US Food and Drug Administration ( FDA ) outside the USA.A
India ‘s nutrient processing sector covers fruit and veggies ; meat and domestic fowl ; milk and milk merchandises, alcoholic drinks, piscaries, plantation, grain processing and other consumer merchandise groups like confectionery, cocoas and chocolate merchandises, Soya-based merchandises, mineral H2O, high protein nutrients etc. We cover an thorough database of an array of providers, makers, exporters and importers widely covering in sectors like the -Food Industry, Dairy processing, Indian drink industry etc. We besides cover sectors like dairy workss, tining, bottling workss, boxing industries, process machinery etc.A
The most promising sub-sectors includes -Soft-drink bottling, Confectionery industry, Fishing, aquaculture, Grain-milling and grain-based merchandises, Meat and domestic fowl processing, Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals, Food additives, spirits etc.
With the overpowering successes of the Green and White Revolutions, India is now fierily poised for the Food Revolution that will guarantee agricultural variegation and big investings in nutrient processing. The entry of multinationals, aggressive rise of trade good stigmatization and low cost of engineering are altering the economic sciences of the Indian nutrient industry. The rise of aggressive regional participants doing raids into classs where entry barriers are low and a roar in Indian FMCG markets and the lifting demand for these merchandises are the cardinal grounds for this growing in nutrient concern.
Indian agribusiness is in the throes of a paradigm displacement, thanks to the structural alterations in the Indian economic system. With the state accomplishing autonomy in grains production, accent has changed from subsistence farming to commercialisation, opening up huge chances for value-addition, packaging and exports, with a strikingly high degree of technological engagement.
The holistic construct of nutrient security, nevertheless, has two dimensions – handiness of nutrient and entree to nutrient. While the former has been achieved, the same is non the instance with the latter. Despite bumper harvests, distribution of nutrient grains continues to be defective – about 30 % of the nutrient produced in the state is wasted. In such a scenario, it is of import for us to reorient our historical agricultural policy model – from pull offing deficits to advancing efficiencies and value add-on. Furthermore, there is a demand to increase the scope of nutrients available to better overall nutrition. The benefits in footings of wellness, verve and productiveness are obvious, and can non be underestimated.
The Indian nutrient market is about Rs 2,50,000 crore ( $ 69.4 billion ) , of which value-added nutrient merchandises comprise Rs 80,000 crore ( $ 22.2 billion ) . The nutrient production in the state is expected to duplicate by the twelvemonth 2020 in 75 cardinal countries in the nutrient, drink and its allied sections. These include nutrient processing, bakeshop, confectionery, dairy, meat & A ; domestic fowl, fruits & A ; veggies, piscaries ( including aquaculture ) , nutrient ingredients, food market retail, packaging, alcoholic drinks, soft drinks and bottled imbibing H2O, canning, fats and oils, filters and filtrating stuffs, spirits and flavour foils, alimentary additives, frozen food/refrigeration and thermo processing, among others.
With nutrient production expected to duplicate by 2020, big investings are already traveling into nutrient and nutrient processing engineerings, accomplishments and equipment. Given the altering industry kineticss, it is overriding to foreground intelligence, issues and events in the sector, some of which are briefly discussed below.
The nutrient processing industry is witnessing a 20 % one-year growing rate and, accordingly, the demand for processed nutrients and drinks in the state is invariably on the rise. There are 300 million upper-and-middle-class consumers of processed and packaged nutrient in the state, and another 200 million are expected to switch by 2010. In the scenario, the nutrient processing industry has been accorded precedence position by the new authorities with Subodh Kant Sahai keeping independent charge of the Ministry of Food Processing Industries.
Processed nutrients are chiefly derived from agricultural trade goods, which frequently incur multiple revenue enhancements at assorted phases. This multiple revenue enhancement has a cascading consequence on monetary values. Furthermore, there is a broad fluctuation in the degree of revenue enhancements across provinces, which creates a barrier to the free flow of stuffs from the farm to the mill and finally to the consumers.
Post-Green Revolution, it is indispensable that agricultural research reoriented to turn to new challenges. As the bing harvest seeds have reached output impregnation, there is an pressing demand to germinate transgenic assortments through the application of biotechnology, RNA usage, and molecular biological science. These assortments should hold high output, short adulthood, plague and disease opposition, emphasis tolerance, and wider adaptability.
With the aid of autochthonal strains betterment programme, nutritionary research and improved cost-efficient vaccinum programmes, India has achieved the differentiation of being the highest milk bring forthing state in the universe. Similarly, with procedures in topographic point to better quality of Marine merchandises for internal and export markets, India is the 7th largest manufacturer of fish in the universe and is ranked 2nd in inland fish production.
Particular nutrients are available for every patient today, be it high blood pressure, diabetes, fleshiness, or even weight decrease. For case, diet nutrient and nutraceuticals are the latest craze. The market for sugar-free confectionery and bite merchandises is turning steadily. Motivated by a desire for maximal indulgence coupled with a want for Calorie control and wellness benefits, consumers are progressively taking sugar-free and sugar-reduced merchandises.
Packaging of nutrient merchandises has become of import in order to guarantee safety and hygiene and to extinguish the possibility of debasement. In some instances, more than 50 % of the monetary value of a merchandise goes towards packaging. Good packaging will greatly catalyse the development of a food-processing sector. However, boxing industry is yet to accomplish international criterions in the state.
Why this sector has been witnessing renewed Investings and Growth
Food processing is the procedure of adding value to the agricultural or horticultural green goods by utilizing assorted techniques like scaling, screening, packaging, etc. which enhances the shelf life of nutrient merchandises. A strong and dynamic nutrient processing sector plays a important function in the overall economic set up of a state. It provides critical linkages and synergisms between industry and agribusiness. It has been identified as a sector holding immediate potency for growing and employment. It leads to variegation of agricultural activities, improves value add-on chances and creates surplus for export of agro-food merchandises.
In India, the nutrient processing industry is one of the largest in footings of production, ingestion and export chances. TheA Ministry of Food Processing IndustriesA is the chief cardinal bureau responsible for developing such a vivacious nutrient processing sector. The Ministry covers the merchandises of fruits and veggies, dairy, meat, domestic fowl, piscary, consumer nutrient, grains, non-molasses based alcoholic drinks, aerated H2O and soft drink. It aims to make increased occupation chances in rural countries, enable the husbandmans to harvest benefit from modern engineering and stimulate demand for processed nutrient.
The Ministry is actively involved in promoting greater investing into the sector by making a contributing environment for healthy operation of the industry. For this intent, the sector has been accorded a high precedence with a figure of policy steps, inducements and strategies announced from clip to clip. The ‘National Food Processing Policy ‘ is one such enterprise, which aims to make an appropriate clime for investing in the industry through: –
Fiscal initiatives/interventions like rationalisation of revenue enhancement construction on fresh nutrients, processed nutrients and machinery used for the production of processed foods.A
Harmonization and simplification of nutrient Torahs by an appropriate passage to cover all commissariats associating to nutrient merchandises every bit good as issues refering virtue goods, hereafters selling, equalization fund, etc.A
Expanding the handiness of the right sort and quality of natural stuff unit of ammunition the twelvemonth by increasing production and productivity.A
Strengthening of database and market intelligence system to enable planned investing in the sector fiting with the handiness of natural stuff and marketability of processed products.A
Promoting puting up of agro-processing installations near to the country of production, so as to avoid wastage and cut down transit cost.
As a consequence of such policy enterprises, the industry has witnessed fast growing in most of its sections. For illustration, India is yearly bring forthing 90 million metric tons of milk ( highest in the universe ) ; 150 million metric tons of fruits and veggies ( 2nd largest ) ; 485 million farm animal ( largest ) ; 204 million metric tons nutrient grain ( 3rd largest ) ; 6.3 million metric tons fish ( 3rd largest ) ; 489 million domestic fowl and 45,200 million eggs.
Therefore, there exist immenseA opportunitiesA for investing in the Indian nutrient processing sector originating from the fact that India is one of the major nutrient manufacturers in the universe and has abundant handiness of a broad assortment of harvests, fruits, veggies, flowers, live-stock and seafood. This is reflected in the sum of FDI influx into the sector which stood atA Rs.333.06 crores ( US $ 74.01 million about ) in 2005-06 and 2006-07 ( till September 2006 ) .
Harmonizing to a study published by market research house RNCOS in April 2010, titled ‘Indian Food and Drinks Market: Emerging Opportunities ‘ the Indian nutrient and drinks market is spread outing quickly and is projected to turn at a compound one-year growing rate ( CAGR ) of approximately 7.5 per cent during 2009-13 and would touch US $ 330 billion by 2013.
The nutrient retail industry, presently at US $ 70 billion is predicted to turn more than double to US $ 150 billion by 2025, harmonizing to KPMG, a planetary audit and consultative house. India ‘s nutrient retail industry is poised for exponential growing. With the development of advanced nutrient processing capacity and the outgrowth of organized retail, alteration in ingestion forms along with fast altering demographics and wonts is fuelling the following growing flight for the nutrient industry in India.
The Indian fast nutrient market is turning at an one-year rate of 25-30 per cent, harmonizing to a study published by market research house RNCOS in September 2010, titled ‘Indian Fast Food Market Analysis ‘ . Foreign fast nutrient ironss are sharply increasing their presence in the state. For case, Domino ‘s has planned to open 60-65 mercantile establishments every twelvemonth for the following three old ages ( 2010-2012 ) while Yum Brands Inc is besides fixing for monolithic enlargement across the state with programs to open 1000 fast nutrient mercantile establishments by 2015.
Exports of agricultural merchandises from India are expected to traverse around US $ 22 billion grade by 2014 and account for 5 per cent of the universe ‘s agribusiness exports, harmonizing to the Agricultural and Processed Food Products Export Development Authority ( APEDA ) .
Exports of flower gardening, fresh fruits and veggies, processed fruits and veggies, animate being merchandises, other processed nutrients and cereals stood at US $ 7,347.07 million in 2009-10, harmonizing to DGCIS one-year informations published by APEDA.
Furthermore, India exported agenda merchandises, flower gardening and seeds, fruits and veggies, processed fruits and veggies, farm animal merchandises, other processed nutrients and cereals worth US $ 1.77 billion between April-June 2009-2010, harmonizing to APEDA.
The export of spices and spice-based value added merchandises during April-August 2010 increased 13 per cent in volume and 19 per cent in value footings. The addition in dollar footings was 25 per cent. Harmonizing to the latest estimations of the Spices Board, a sum of 239,850 metric tons, valued at US $ 564.85 million, was exported as against 211,950 metric tons valued at US $ 450.50 million in April-August 2009.
The Indian Fisheries occupies 3rd place in planetary scenario in footings of production of fish which is 4.4 per cent of planetary fish production. The part of piscaries sector is 1.10 per cent to the entire GDP and 5.3 per cent to the agricultural GDP. Fishery sector has emerged as the largest group in agricultural export of India with measure of 5.20 lakh metric tons and value of US $ 1.78 billion, severally. The sector employs 14.0 million of the population.
In order to further turn the nutrient processing industry, the Ministry of Food Processing Industries ( MOFPI ) has formulated a Vision 2015 action program under which specific marks have been set. This includes trebling the size of the nutrient processing industry, raising the degree of processing of spoilables from 6 per cent to 20 per cent, increasing value add-on from 20 per cent to 35 per cent, and heightening India ‘s portion in planetary nutrient trade from 1.5 per cent to 3 per cent.
Harmonizing to Mr Subodh Kant Sahai, Union Minister for Food Processing Industries, the Cardinal Government is imagining an investing of US $ 21.9 billion in the nutrient processing industry over the following five old ages, a major ball of which it plans to pull from the private sector and fiscal establishments.
Furthermore, the nutrient processing sector has grown from 6 per cent a twelvemonth ago to 14.9 per cent in 2010, harmonizing to Mr Sahai. The Minister further said that at present the state was treating 10 per cent of the entire nutrient green goods and aimed to heighten it to 20 per cent by 2015. Exports are besides targetted to increase from 1.5 per cent to 3 per cent.
Furthermore harmonizing to Mr Sahai, foreign direct investing ( FDI ) in nutrient processing is likely to lift 27 per cent to US $ 264.6 million in 2010-11. “ This twelvemonth, FDI is expected to traverse Rs 1,000 crore and touch Rs 1,200 crore, ” Sahai said on the out of boundss of the 2nd national conference of the National Meat and Poultry Processing Board ( NMPPB ) in New Delhi in May 2010.
The cumulative FDI received by the nutrient processing industry from April 2000-September 2010 stood at US $ 1,102.03 million, harmonizing to informations released by the Department of Industrial Policy and Promotion ( DIPP ) .
Harmonizing to a study published by market research house RNCOS in August 2009, titled “ Indian Non-Alcoholic Drinks Forecast to 2012 ” , the Indian non-alcoholic drinks market was estimated at around US $ 4.43 billion in 2008 and is expected to turn at a CAGR of around 15 per cent during 2009-2012.
As per the study, the fruit/vegetable juice market will turn at a CAGR of around 30 per cent in value footings during 2009-2012, followed by the energy drinks section which will turn at a CAGR of around 29 per cent during the same period.
Some of the major investings in the industry are:
Chennai-based FMCG company CavinKare is be aftering to put around US $ 109.50 million over the following two old ages in assorted enlargement programs, including a greenfield installation for namkeen at Thane, cool drinks in the North and others.
Nestle, the fast moving consumer goods major, plans to put US $ 50.49 million to put up its first research and development ( R & A ; D ) Centre in India at Manesar in bordering Gurgaon territory. The installation will be made operational by July 2012.
Packaged consumer goods company GlaxoSmithKline Consumer Healthcare ( GSKCH ) plans to put over US $ 64.87 million on shifting milk nutrient drink Horlicks as the company ‘s umbrella trade name.
Yum! Restaurants India, the operator of the Pizza Hut, KFC and Taco Bell eating house ironss, plans to put US $ 100 million to more than soprano the figure of restaurants it operates across the state to 1,000 by 2015, said Niren Chaudhary, Managing Director, Yum! Restaurants India.
FieldFresh Foods, joint venture of the Bharti Enterprises and Del Monte Pacific Ltd, has inaugurated their Research and Development and fabricating installation in Hosur, Tamil Nadu at an investing of US $ 25.93 million.
Agri solutions provider Buhler India plans to put US $ 22.55 million in an incorporate fabrication unit and other enlargement undertakings in the following four old ages, in line with its programs to accomplish US $ 225.49 million turnover by 2014.
Soft drinks and bites major Pepsico is be aftering to put US $ 500 million in India in the following two old ages.
Atlanta-based Coca Cola Company plans to put up to US $ 120.75 million to put up a new bottling works in Karnataka, India.
The Centre has announced a series of new enterprises which include a separate policy at the province degree, push on contract agriculture and doing the sector tax-exempt.
The authorities programs to open 30 mega nutrient Parkss by the terminal of the 11th Five Year Plan ( 2007-2012 ) .
In the Union Budget of 2010-11, the authorities has announced puting up of five more mega nutrient park undertakings in add-on to the 10 already being set up. Furthermore, external commercial adoption will be made available for cold storage or cold room installation including for farm degree pre chilling, for saving or storage of agribusiness and allied green goods, Marine merchandises and meat.
As per information published on MOFPI
Income Tax discount is allowed, 100 per cent of net incomes for 5 old ages and 25 per cent of net incomes for the following 5 old ages, for new industries to treat, preserve and bundle fruits and veggies.
Excise responsibility on ready to eat packaged nutrients and instant nutrient mixes has been brought down to 8 per cent from 16 per cent.
Excise responsibility on aerated drinks has been reduced to 16 per cent from 24 per cent.
Looking in front
Harmonizing to an industry organic structure and E & A ; Y survey on the Indian nutrient industry called ‘Flavours of Incredible India – Opportunities in the Food Industry ‘ , published in October 2009, investing chances in the Indian nutrient industry are set to hit up by a immense 42.5 per cent to US $ 181 billion in 2015 and to US $ 318 billion by 2020.