Status of FOOD PROCESSING INDUSTRIES.ppt
Download as PPT, PDF0 likes40 views
The document discusses the status and growth potential of India's food processing industry, which is projected to reach US$ 200 billion by 2015, driven by factors such as agricultural diversification and increasing demand for processed foods. Despite facing challenges like infrastructure inadequacies and high transportation costs, the sector is witnessing a trend towards modernization and investment, particularly in value-added products. Additionally, India's diverse agro-climatic conditions position it favorably as a major producer of food, opening opportunities for domestic consumption and exports.
Status of FOOD PROCESSING INDUSTRIES.ppt
- 1. Status of Food processing industries
- 2. An Introduction to the Sector An Introduction to the Sector India is fervently poised for the Food Revolution India is fervently poised for the Food Revolution This will ensure agricultural diversification and large investments This will ensure agricultural diversification and large investments in food processing. in food processing. The concept of food security has two dimensions – availability of The concept of food security has two dimensions – availability of food and access to food. food and access to food. 30% of the food produced in the country is wasted. 30% of the food produced in the country is wasted. There is a need to increase the range of foods available to improve There is a need to increase the range of foods available to improve overall nutrition. overall nutrition. Special foods for patients suffering from hypertension, diabetes Special foods for patients suffering from hypertension, diabetes gives health benefits. gives health benefits. Packaging of food products has become important to ensure safety Packaging of food products has become important to ensure safety and hygiene. and hygiene.
- 3. A comprehensive view A comprehensive view The Indian food market is approximately Rs 2,50,000 crore ($69.4 The Indian food market is approximately Rs 2,50,000 crore ($69.4 billion) billion) Value-added food products comprise Rs 80,000 crore ($22.2 billion). Value-added food products comprise Rs 80,000 crore ($22.2 billion). The food processing industry is witnessing a 20% annual growth The food processing industry is witnessing a 20% annual growth rate. rate. Post-Green Revolution, it is essential that agricultural research Post-Green Revolution, it is essential that agricultural research reoriented to address new challenges. Application of reoriented to address new challenges. Application of biotechnology, RNA use, and molecular biology. biotechnology, RNA use, and molecular biology. Nutritional research and improved cost-effective vaccine Nutritional research and improved cost-effective vaccine programmes programmes
- 4. Target Segment Profile Target Segment Profile Higher growth during 2005-06 in almost all the products Higher growth during 2005-06 in almost all the products belonging belonging to Food and Beverage segment to Food and Beverage segment The overall industry has achieved a growth rate of about 8 The overall industry has achieved a growth rate of about 8 % in % in terms of value during 2004-05 terms of value during 2004-05 Government’s high priority for development of food processing Government’s high priority for development of food processing industry to encourage commercialization and value addition to industry to encourage commercialization and value addition to agricultural produce. agricultural produce. Agro based l00 percent export oriented units allowed sale up to 50 Agro based l00 percent export oriented units allowed sale up to 50 per cent in Domestic tariff area. per cent in Domestic tariff area. India’s middle class segment continues to hold the key to success India’s middle class segment continues to hold the key to success of the processed food market in India. of the processed food market in India.
- 5. Food Processing Industry Food Processing Industry -The US$ 135 billion food processing industry in India is projected to grow at a -The US$ 135 billion food processing industry in India is projected to grow at a compound annual growth rate of 10% to reach US$ 200 billion by 2015. compound annual growth rate of 10% to reach US$ 200 billion by 2015. - Food processing industry in India is supported by a great agro-climatic diversity - Food processing industry in India is supported by a great agro-climatic diversity suitable for round the year cultivation of crops. In terms of production, India is among suitable for round the year cultivation of crops. In terms of production, India is among the world’s major food producers. the world’s major food producers. -The country accounts for 17% animal, 12% plant and 10% fish genetic resources of -The country accounts for 17% animal, 12% plant and 10% fish genetic resources of the globe; and 16% of cattle, 57% of buffalo, 17% of goats and 5% of sheep the globe; and 16% of cattle, 57% of buffalo, 17% of goats and 5% of sheep population of the world. These numerous advantages and factor conditions like low population of the world. These numerous advantages and factor conditions like low cost of labor put India in an enviable position to produce a wide variety of food crops cost of labor put India in an enviable position to produce a wide variety of food crops and commercial crops for domestic consumption as well as export. and commercial crops for domestic consumption as well as export. -The Indian Foods & Beverage industry is poised for a significant leap forward. The -The Indian Foods & Beverage industry is poised for a significant leap forward. The total food production in India is expected to double in the next ten years and there is total food production in India is expected to double in the next ten years and there is ample opportunity for huge investments in food and food processing technologies, ample opportunity for huge investments in food and food processing technologies, skills and equipment. skills and equipment. -An estimated investment of US$ 17.5 billion is required in the food processing -An estimated investment of US$ 17.5 billion is required in the food processing industry to achieve the goals projected in India’s Vision 2015. industry to achieve the goals projected in India’s Vision 2015. -Investments are needed in various stage of the supply and value chain, proper -Investments are needed in various stage of the supply and value chain, proper research, farm and lab connectivity, up-gradation of technology, skill and manpower research, farm and lab connectivity, up-gradation of technology, skill and manpower training, training,
- 6. Continue… Continue… Indian food and beverage companies are making a beeline for regional Indian food and beverage companies are making a beeline for regional overseas markets like Bangladesh, Pakistan, Nepal, Middle East overseas markets like Bangladesh, Pakistan, Nepal, Middle East The market is seeing players like Heinz, Mars, Marico, Pepsi, ITC, The market is seeing players like Heinz, Mars, Marico, Pepsi, ITC, Dabur, Britannia, Cadbury, HLL, Pillsbury, Nestle and Amul. Dabur, Britannia, Cadbury, HLL, Pillsbury, Nestle and Amul. Both public and private players operate in the market, e.g., Hindustan Both public and private players operate in the market, e.g., Hindustan Lever, Nestle and NDDB, NAFED. Lever, Nestle and NDDB, NAFED. The price stability throughout the year has contributed to the increase The price stability throughout the year has contributed to the increase in domestic liquor sales. in domestic liquor sales. Branded products are preferred in the Edible oil segment as the urban Branded products are preferred in the Edible oil segment as the urban consumers are increasingly becoming health conscious and looking consumers are increasingly becoming health conscious and looking out for low cholesterol cooking medium. out for low cholesterol cooking medium.
- 7. Basic Issues & Constraints Basic Issues & Constraints Lack of adequate infrastructure. Lack of adequate infrastructure. Absence of a strong and dependable cold chain system which is Absence of a strong and dependable cold chain system which is very vital very vital There is a need for a review of the Agricultural Produce and There is a need for a review of the Agricultural Produce and Marketing Act to ensure freedom to farmers Marketing Act to ensure freedom to farmers Some commodities in one segment are used as inputs in another Some commodities in one segment are used as inputs in another segment of the food processing industry segment of the food processing industry Excise Duty on all Value Added food products like Nutritional Excise Duty on all Value Added food products like Nutritional and health foods and health foods Ice –creams and Non-alcoholic beverages dispensed by vending Ice –creams and Non-alcoholic beverages dispensed by vending machines are exempt from excise duty machines are exempt from excise duty
- 8. Continue.. Continue.. Packaging material for match sticks is exempted from excise Packaging material for match sticks is exempted from excise duty. duty. The higher railway freight has pushed up cost of raw materials The higher railway freight has pushed up cost of raw materials and inputs such as sugar, edible oil and all these add to cost of and inputs such as sugar, edible oil and all these add to cost of production. production. FICCI has highlighted some areas of concern impacting the FICCI has highlighted some areas of concern impacting the overall Food and Beverage Industry overall Food and Beverage Industry
- 9. 9 Food Processing Demand Drivers Food Processing Demand Drivers 9 9 Food Processing Demand Drivers Growing nuclear families and working women Rising demand for functional food (oatmeal, etc) Increasing modern trade formats and private label penetration Increasing urbanization – lifestyle and aspirations Changing demographics – Rise in disposable incomes Increasing spending on food products
- 10. The Industry survey The Industry survey India is among the world's major producer of food and produces India is among the world's major producer of food and produces over 600 million tonnes of food over 600 million tonnes of food products every year products every year India’s food consumption market is expanding rapidly to attract India’s food consumption market is expanding rapidly to attract global food and drink global food and drink giants giants India is the second largest producer of rice and wheat and the India is the second largest producer of rice and wheat and the largest producer of pulses. largest producer of pulses. Indian food processing industry is poised for further growth in Indian food processing industry is poised for further growth in view of the liberal policy measures and government’s view of the liberal policy measures and government’s commitment for reforms and development of food and agro- commitment for reforms and development of food and agro- processing industries. processing industries.
- 11. ..continue ..continue Health food, health food supplements, Convenient Food and Health food, health food supplements, Convenient Food and Branded Food are rapidly gaining vast popularity with the Branded Food are rapidly gaining vast popularity with the changing life styles of the consumers. changing life styles of the consumers. The unorganized, small players account for more than 75% of the The unorganized, small players account for more than 75% of the industry output in volume terms and 50% in value terms industry output in volume terms and 50% in value terms Since liberalization in 1991 till January 2004 proposals for Since liberalization in 1991 till January 2004 proposals for projects of over Rs.87715 crores have been proposed in various projects of over Rs.87715 crores have been proposed in various segments of the food and agro-processing industry. segments of the food and agro-processing industry. The Government has provided many liberal incentives to The Government has provided many liberal incentives to encourage the Food Processing industry. encourage the Food Processing industry.
- 12. Segment-wise Analysis Segment-wise Analysis BRANDED FLOUR (ATTA) BRANDED FLOUR (ATTA) The grain-processing sector is largely The grain-processing sector is largely un-organized, although there un-organized, although there are a few large players in the market. are a few large players in the market. Brands like "Captain Cook" Brands like "Captain Cook", , some large players, like Hindustan some large players, like Hindustan Lever (with its Annapurna brand) and Godrej Pillsbury Lever (with its Annapurna brand) and Godrej Pillsbury (Pillsbury), Agro Tech (Healthy (Pillsbury), Agro Tech (Healthy World), Nature Fresh and ITC World), Nature Fresh and ITC (Aashirvaad) re players of the market (Aashirvaad) re players of the market Increased competitive activity is spurring market growth Increased competitive activity is spurring market growth The segment, which had been growing with excellent rate of 40- The segment, which had been growing with excellent rate of 40- 50% till 2000 grown by 12% in 2004-05. 50% till 2000 grown by 12% in 2004-05. BAKERY INDUSTRY BAKERY INDUSTRY The annual production of bakery products was 50 lakh tones in The annual production of bakery products was 50 lakh tones in 2004-05 with estimated value of 2004-05 with estimated value of Rs 69 billion. Rs 69 billion.
- 13. ..continue ..continue The organized sector has a market share of 45 per cent and the The organized sector has a market share of 45 per cent and the balance 55 per cent is with the unorganized sector in the baked balance 55 per cent is with the unorganized sector in the baked products. products. Bread Industry Bread Industry: : The large organized sector players who are prominent in the high- The large organized sector players who are prominent in the high- and medium-price and medium-price segments include Britannia, Modern Industries segments include Britannia, Modern Industries Ltd. Ltd. Local manufacturers with numerous local brands cater to populous Local manufacturers with numerous local brands cater to populous segment and contribute considerably in the bread segment. segment and contribute considerably in the bread segment. Biscuit Industry Biscuit Industry: : The major brands of biscuits are – The major brands of biscuits are – Britannia, Parle, Bakeman, Priya Britannia, Parle, Bakeman, Priya Gold etc Gold etc The per capita consumption of biscuits in our country is about 1.52 The per capita consumption of biscuits in our country is about 1.52 kg as compared to more than 12 kg in developed countries kg as compared to more than 12 kg in developed countries
- 14. Semi processed/ Cooked/ Ready to Eat Semi processed/ Cooked/ Ready to Eat The market for semi-processed/cooked and ready to eat foods was The market for semi-processed/cooked and ready to eat foods was around Rs 82.9 billion in 2004-05. around Rs 82.9 billion in 2004-05. HLL has entered the ready to eat segment through Indus Valley HLL has entered the ready to eat segment through Indus Valley rice meals in seven rice meals in seven flavours flavours ITC ‘s more than 50 packaged branded food products under ITC ‘s more than 50 packaged branded food products under Kitchens of India and Aashirvaad brands with different varieties Kitchens of India and Aashirvaad brands with different varieties of ready to eat/ cooked food is gaining popularity in the market. of ready to eat/ cooked food is gaining popularity in the market. CULINARY PRODUCTS & SNACK FOOD CULINARY PRODUCTS & SNACK FOOD The total production of culinary products and snack food was The total production of culinary products and snack food was around Rs 1750 crore in 2004-05 and is growing at a moderate around Rs 1750 crore in 2004-05 and is growing at a moderate rate of 8 per cent rate of 8 per cent The culinary products including mainly wheat based products The culinary products including mainly wheat based products comprising of noodles, vermicelli, macaroni and spaghetti is comprising of noodles, vermicelli, macaroni and spaghetti is gaining popularity gaining popularity
- 15. ..continue ..continue HLL (Kissan and Knorr range) and Nestle HLL (Kissan and Knorr range) and Nestle (Maggi) dominate this segment. Heinz and (Maggi) dominate this segment. Heinz and Top Ramen are also strong players. Top Ramen are also strong players. Frito Lay's India, Pepsico’s Snack Food Frito Lay's India, Pepsico’s Snack Food Division having snack foods plants in Division having snack foods plants in Channa (Punjab) and Pune (Maharashtra) , Channa (Punjab) and Pune (Maharashtra) , and going for another in (Sakrail) West and going for another in (Sakrail) West Bengal with Bengal with investment of Rs 75 Crores. investment of Rs 75 Crores. FRUIT JUICES / PULP & FRUIT JUICES / PULP & CONCENTRATES/ SAUCES/ KETCH CONCENTRATES/ SAUCES/ KETCH UPS UPS India is the second largest producer of both India is the second largest producer of both fruits and vegetables in the world. fruits and vegetables in the world. The market has immense potentialities The market has immense potentialities provided some infrastructural facilities for provided some infrastructural facilities for efficient transportation and marketing of efficient transportation and marketing of fruits and vegetables are created. fruits and vegetables are created.
- 16. Sugar Industry Sugar Industry The largest agro-processing industries of the country The largest agro-processing industries of the country with an with an annual turnover of Rs 200 billion. annual turnover of Rs 200 billion. Indian sugar industry uses sugar cane as the only input Indian sugar industry uses sugar cane as the only input The sugar industries have sprung up in states like Uttar Pradesh, The sugar industries have sprung up in states like Uttar Pradesh, Maharashtra, Punjab, Gujarat, Andhra Pradesh, West Bengal. Maharashtra, Punjab, Gujarat, Andhra Pradesh, West Bengal. The leading players in Indian sugar industry are Balrampur Chini The leading players in Indian sugar industry are Balrampur Chini Mills Ltd, Bajaj Hindustan Ltd, Andhra Sugars Ltd, Thiru Mills Ltd, Bajaj Hindustan Ltd, Andhra Sugars Ltd, Thiru Arooran Sugars Ltd and, Dhampur Sugar Ltd. Arooran Sugars Ltd and, Dhampur Sugar Ltd. The Government controls sugar capacity additions through The Government controls sugar capacity additions through industrial licensing, determines the price of the major input industrial licensing, determines the price of the major input sugarcane, decides the quantity sugarcane, decides the quantity Inadequate sugar cane availability, uneconomical size, bad Inadequate sugar cane availability, uneconomical size, bad condition of plant and machinery are responsible for closure of condition of plant and machinery are responsible for closure of many mills in the country. many mills in the country.
- 17. ..continue ..continue Central Government has also Central Government has also provided inland transport provided inland transport subsidy for sugar subsidy for sugar export. export. Dual Pricing System is adopted in Dual Pricing System is adopted in the Indian sugar industry, which the Indian sugar industry, which includes sugar price in Public includes sugar price in Public distribution system and the free distribution system and the free sale sugar price. sale sugar price.
- 18. Edible oil Edible oil The growth of the Rs. 250 billion edible oil industry in India has The growth of the Rs. 250 billion edible oil industry in India has been somewhat stagnant at around 5% per annum. been somewhat stagnant at around 5% per annum. NDDB has emerged as a major player in the sector with its NDDB has emerged as a major player in the sector with its "Dhara" brand of edible oil. "Dhara" brand of edible oil. Even small growers and co-operatives having crushing units or Even small growers and co-operatives having crushing units or solvent extraction units have started branding their products. solvent extraction units have started branding their products. In Edible oils, National Dairy Development Board (Anand), ITC In Edible oils, National Dairy Development Board (Anand), ITC Agro-Tech (Secunderabad) , Marico Industries (Mumbai), Agro-Tech (Secunderabad) , Marico Industries (Mumbai), Ahmed Mills, (Mumbai) are the major players. Ahmed Mills, (Mumbai) are the major players. The main issues in the edible oil segment is the rising cost of raw The main issues in the edible oil segment is the rising cost of raw materials. materials. Raw material cost account for 70 per cent of sale price. Raw material cost account for 70 per cent of sale price.
- 19. Alcoholic Beverages Alcoholic Beverages The alcoholic beverages industry in India is generally divided into The alcoholic beverages industry in India is generally divided into two main categories-Industrial Alcohol and Potable two main categories-Industrial Alcohol and Potable Alcohol. Alcohol. The price stability throughout the year has contributed to the The price stability throughout the year has contributed to the increase in domestic increase in domestic liquor sales. liquor sales. United Breweries Ltd, Shaw Wallace, MC Dowell & Co Ltd (part United Breweries Ltd, Shaw Wallace, MC Dowell & Co Ltd (part of the UB Group) Radico Khaitan, Seagram India Ltd are of the UB Group) Radico Khaitan, Seagram India Ltd are among the familiar names in the alcoholic beverage industry in among the familiar names in the alcoholic beverage industry in the country. the country. The Indian wine market, estimated at 5 lakh cases annually, has The Indian wine market, estimated at 5 lakh cases annually, has witnessed robust witnessed robust 30% growth over the past few years. 30% growth over the past few years. Several Indian brands have made inroads into the foreign markets Several Indian brands have made inroads into the foreign markets including British market. including British market.
- 20. Malted Food & Health Beverages Malted Food & Health Beverages The Rs. 14.4 billion malted foods market is composed of two The Rs. 14.4 billion malted foods market is composed of two segments - brown and white. segments - brown and white. Malted beverages with nutritional attributes control around 70% of Malted beverages with nutritional attributes control around 70% of the total the total market and energy drinks (brown beverages) account for market and energy drinks (brown beverages) account for the rest. the rest. The malted food drink industry is dominated by few players. These The malted food drink industry is dominated by few players. These include brands such as ' Horlicks, 'Complan' and 'Viva', which are include brands such as ' Horlicks, 'Complan' and 'Viva', which are mainly known as white beverages. 'Boost', 'Bournvita', 'Milo' and mainly known as white beverages. 'Boost', 'Bournvita', 'Milo' and 'Maltova' on the other hand are classified as brown drink. 'Maltova' on the other hand are classified as brown drink. The consumption pattern of malted beverages differs according to The consumption pattern of malted beverages differs according to usage patterns across geographic zones usage patterns across geographic zones
- 21. MILK AND DAIRY PRODUCTS India is the largest milk producing country with production of India is the largest milk producing country with production of about 92 million tonnes. about 92 million tonnes. Efficient production and marketing can bring about more than Efficient production and marketing can bring about more than 200 per cent value addition in the Indian dairy segment. 200 per cent value addition in the Indian dairy segment. The National Dairy Development Board (NDDB) is a major The National Dairy Development Board (NDDB) is a major player in the market with its major brand, Amul. player in the market with its major brand, Amul. Leading brands like Amul, Nestle, Mother Dairy and Britannia Leading brands like Amul, Nestle, Mother Dairy and Britannia are in the race to tap the growing market. are in the race to tap the growing market. The milk and dairy products segment is set for up gradation of The milk and dairy products segment is set for up gradation of cold-storage chains cold-storage chains for expansion. for expansion.
- 22. … …continue continue Mother Dairy brand through retail Mother Dairy brand through retail outlets across the country in outlets across the country in addition to its own 300 outlets addition to its own 300 outlets with provision of cold storage with provision of cold storage and cold chains. and cold chains. Rising standards of living and Rising standards of living and popularity of convenience popularity of convenience foods, the industry is expected foods, the industry is expected to witness strong long-term to witness strong long-term demand growth potential. demand growth potential.
- 23. Confectionary Industry The entire market can be divided into 7 major categories, namely Hard Boiled Candies (HBC), Toffees, Eclairs, Chewing gums, Bubble gum, mints and Lozenges. It is dominated by 2 major players, Cadbury India Ltd and Nestle India Ltd, which together account for about 90% of the total chocolate market. The perishable nature of the product and the fact that India lacks a cold chain distribution network are among the major problems that inhibit market expansion. The private dairies have raised the prices including the prices of Skimmed Milk Powder (SMP), the essential ingredient for manufacturing milk chocolates and ice cream mixes in addition to biscuits and confectionery products.
- 24. Study on TEA Industry Tea has brought cheer to people across the world for over 4500 years. Chinese first drank it for its medicinal value, and later, from the third century onwards, as a refreshing beverage. India has a vast domestic market. The Industry has achieved a production of 878 million kg in 2005 from 820.5 million Kg in 2004 with a growth of about 7 percent. Tea plantations in India are concentrated in the North-East (Upper Assam, West Bengal) and the South (Kerala, Tamil Nadu). Tea trading in the domestic market is done in two ways-auction Tea trading in the domestic market is done in two ways-auction and private selling and private selling
- 25. … …continue continue Tea imports surged from a mere 7 million kg in 2003 to whopping 30 million kg in 2004. Lower availability of tea in the domestic market may continue in short run, as tea production falls in January seasonally Assam produces around 53 percent of the country's total production, but also employs more than 10 percent of the state’s work force or around 12 lakh people.
- 26. Tea Cultivation and Production Process Rainfall: More than the total amount, the distribution of rainfall matters a lot for sustained high yield of tea throughout the season. Temperature and RH: Temperature affects tea yield by : Temperature affects tea yield by influencing rate of photosynthesis and controlling growth and influencing rate of photosynthesis and controlling growth and dormancy. dormancy. In general, the ambient temperature within 13°C and 28-32°C is In general, the ambient temperature within 13°C and 28-32°C is conducive for growth of tea conducive for growth of tea Day length: Day length influences growth and dormancy in tea : Day length influences growth and dormancy in tea bushes. bushes. Soil: Soil: Tea grows well on high land well drained soils having a good Tea grows well on high land well drained soils having a good depth, acidic pH in the range 4.5 to 5.5 and more than 2% depth, acidic pH in the range 4.5 to 5.5 and more than 2% organic matter organic matter
- 27. OPPORTUNITIES AND PROJECTION The Food and Beverage Industry is projected to have overall The Food and Beverage Industry is projected to have overall growth between 8% - growth between 8% -8.5 % 8.5 % The sectors which are projected to achieve excellent growth of The sectors which are projected to achieve excellent growth of 20% and above are –Semi Processed/Cooked Ready to eat 20% and above are –Semi Processed/Cooked Ready to eat (22%), Ice-Cream(20%), Edible/Vegetable oil (22%), Ice-Cream(20%), Edible/Vegetable oil (20%),Wine(22%) . (20%),Wine(22%) . Development of rural infrastructure, rural extension services, Development of rural infrastructure, rural extension services, agro-based and food agro-based and food processing industries have been given processing industries have been given high priority. high priority. The process of setting up of Food Parks in various key locations The process of setting up of Food Parks in various key locations of the country with the involvement of the various state of the country with the involvement of the various state governments and other governments and other allied institutions is on. allied institutions is on.
- 28. Thanks for your attention Thanks for your attention Presented to: ER.VIKAS BANSAL Presented to: ER.VIKAS BANSAL Presented by: DEVANSHI & SUNIDHI Presented by: DEVANSHI & SUNIDHI