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Submitted by:-

Divesh kumar

Ishan chawla

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Contents INDIAN FOOD INDUSTRY

KEY GROWTH DRIVERS

MAJOR CHALLENGES GROWTH OPPORTUNITIES

OUR SUGGESTIONS

THE INDIAN CONSUMER NEEDS FROMPROCESSED FOODS

CHANGING SPENDING PATTERNS

CHALLENGES AND OPPORTUNITIES

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INDIAN FOOD INDUSTRY Indian Agriculture sector contributes 17% to the GDP

and provide 60% of employment

World leaders in various food items like cereals, fruits& vegetables and dairy products

Diverse agro-climatic conditions - production of awide range of crops

Large consumer class a population of 1.13 billionwith rapidly increasing middle class (~ 20 million)

Shifting food habits from basic food items towardshigh value crops and processed food items

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Indian Food Industry stands at $ 200 bn in 06-07, of which Food Processing industry contributes a share of 43% ($ 85 bn)

Directly employs about 2 mn people

Highly fragmented and dominated by the unorganized sector

INDIAN FOOD INDUSTRY: KEY

STATISTICS

2002-03 2006-07 2010-11* 2014-15*

Food Industry Size ($ billion) 175 200 250 300

Food Processing Industry Size ($billion)

70 85 110 150

% Food Processing Industry intotal Food Industry

40% 43% 44% 50%

Size of organized sector in FoodProcessing Industry ($ billion)

13 23 37 60

% organized sector in Food

Processing Industry

19% 27% 36% 40%

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Food processing Food processing is the methods and techniques used

to transform raw ingredients into food for humanconsumption.

One Off Production

Batch Production

Mass production

Just In Time

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KEY GROWTH DRIVERS Major contributors are

staple and otherfoods(like food grains,sugar,edible oils, pulses,tea,spices )

Dairy and F&Vcontributes 23% each

Packaged Foodssegment is the fastestgrowing across sectors

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Key Growth Drivers Huge Production Base

Changing Consumers

Organized Retail and Food Retail Export Opportunities

Government Support

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Key Growth Drivers

1. huge production base

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2. Changing Consumers

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2. Changing Consumers (contd)

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3. Organized Retail and Food Retail

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5. Government Support The Government has introduced several schemes to

provide financial assistance for setting up andmodernizing of food processing units, creation ofinfrastructure, support for research and developmentand human resource development in addition to otherpromotional measures to encourage the growth of theprocessed food sector.

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3 key themes

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Key Challenges Non-availability of adequate infrastructural facilities

Lack of adequate quality control & testinginfrastructure

Inefficient supply chain Seasonality of raw material

High inventory carrying cost

High taxation, High packaging cost

Affordability

Cultural preference of fresh food.

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Growth Opportunities

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Organic food Organic farming is a production system which avoids

or largely excludes the use of syntheticallycompounded fertilizers, pesticides , growth regulatorsand livestock feed additives . To the maximum extentfeasible it relies upon crop rotations, crop residues,animal wastes, mechanical cultivation, mineralbearing rocks and aspects of biological pest control to

maintain soil productivity and tilth to supply plantnutrients and to control insects, weeds and otherpests.

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Problems created by Green

Revolution Reduced genetic diversity.

Increased vulnerability to pests.

Soil erosion.

Water shortages. Reduced soil fertility.

Micronutrient deficiencies.

Soil contamination.

Reduced availability of nutritious food crops. The displacement of vast numbers of small farmers.

Rural impoverishment and increased tensions andconflicts.

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Need for Organic Farming : Need for Organic Farming World Food Summit, Rome, (1996) Food security is

achieved when all people at all times have physical and economic access tosufficient safe and nutritious food to meet their direct needs and foodpreferences for an active and active healthy life.

Sabharwal, Secretary, APEDA (2002): Developed countries are dependent on

developing countries like India to the extent of 30-50% for their requirementsof organic food products and India should seize the opportunity to tap thesemarkets FAO (2002) Price premium of organic products about 20-30%.

Organic farming is the only way farmers can escape from the vicious cycle ofdebt and a negative economy. It is growing everywhere, because consumersdont want to be poisoned with toxic residues from agrochemicals. It is alsonecessary from the point of view of small producers (Vandana, 2003).

Between 1998 and 2002, the compound annual growth rate of the organic foodmarket was 17.7 percent. In 2004, the market for organic products was valued atUS$27.8 billion, the largest share of organic products being marketed in Europeand North America, followed by Brazil and Middle East (IFOAM, 2006).

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Global mobile food industry

Mobile is fast becoming the buzzword for the currentgeneration

This booming sector is driven by the fast-pacedlifestyles of consumers who are demandingconvenience snacks and meals and faster services

The growing popularity of food trucks is alsoattributed to the economic pressures that compelconsumers to seek low-cost meal options as againstthe high-cost fine dining experience

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Sales % of united states

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Product lines

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Potential customers There are several demographic groups that can provide

potential customers.

a) breakfast or lunch crowd at office parks, where quick

service is crucialb) tourists, who might want to experience your home-town

favorites

c) event attendees who want a bite to eat between inningsor before the headlining band goes on

d) late-nighters, those hungry club-goers craving the typesof gluttonous, greasy snacks best consumed aftermidnight.

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To earn money in mobile food service means beinghungry. It means moving fast before too many playersget into the game and your city limits its licenses. It

means having menu items your competitors don't have(or at least making your own unique versions ofpopular favorites), and finding locations that aren'talready teeming with competitors.

Mobile lunch trucks have long been based on thesimple concept of bringing quality food to people inareas where there are not many other food choices.

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Types of food trucks Ice cream trucks

Frozen or prepackaged food

Restaurants-on-wheels Specific meals caterer such as breakfast truck, lunch

truck or lunch wagon, and snack truck.

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Resourceswww.technopak.com

http://way2wealth.com/reports/RR150420084.PDF

http://en.wikipedia.org/wiki/Mobile_catering
http://www.technopak.com/http://way2wealth.com/reports/RR150420084.PDFhttp://en.wikipedia.org/wiki/Mobile_cateringhttp://en.wikipedia.org/wiki/Mobile_cateringhttp://way2wealth.com/reports/RR150420084.PDFhttp://www.technopak.com/

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