Rncos chhattisgarh

Chhattisgarh: An Investment Opportunity in Food Processing Sector

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About Us

• Started in 2002, with the aim of providing multiple services to companies wishing to engage in any business expansion

• Provide actionable insights to companies across a range of industries such as Food, and Healthcare

• Well equipped offices in India and Dubai, also present in 20 countries and 5 cities in India through channel partners

• Dedicated team of over 35 employees and 15 freelancers, with rich industry experience and domain expertise

Services

Strategic Consulting

• In-Depth Market Assessment

• Market Entry Strategies

• Concept & Product Testing

• Existing Business Optimization

• Strategic Advisory

India: Food Processing Industry

2012 2015 2020f 2025f

6,637

11,640

16,500

30,600

India - Food Processing Industry (Billion INR) 2012, 2015, 2020 & 2025

CAGR 12.5%

Source: ICAR, RNCOSNote: f = RNCOS Forecast

• India is the world’s second largest food producer

• Food production in India is likely to double in the next 10 years

• Food processing accounts for 32% of country’s total food market and 14% India manufacturing GDP

• Organized sector occupies almost 25% of the market and is expected to grow with a CAGR of 16% during 2014-2020

Dairy Products

33%

Grains & Pulses

10%Convenience Foods10%

Fruits & Vegetables5%

Others42%

Food Processing Market Segmentation (2014)

Source: RNCOSNote: Others include alcoholic beverages, meat and poultry

Industry Drivers:

Abundant resources to support the flourishing food processing industry

Increasing interest for ready-to-eat food products among young generation and working class

Consumers ready to experiment with unique processed food offerings

Government is planning to set-up food parks, mega food parks, cold chains, etc. for food processing industry

• Chhattisgarh is amongst the only five states in India to grow faster (GSDP-8.4%) than the national average (7.9%) during the 11th plan (2007-2011)

• Majority of food processing is at primary level

• State has recently approved 3 Mega Food Parks to support food processing industry

• MoFPI has already sanctioned two cold chain projects in Raipur district

• 10 production clusters have been identified by the state government for setting up food processing plants in the state

• The state government has also established 25 production units for value added services such as grading, processing, waxing, extraction and distillation

Chhattisgarh: Food Processing Industry - Salient Features

Agriculture Crops Percentage share in India

Rice 5%

Litchi 6%

Papaya 6%

Guava 4%

Okra 4%

Cauliflower 5%

Chhattisgarh’s Share in All India production (FY2014)

• Chhattisgarh is the 10th largest state by area in the country

• About 80% of the population in the state is engaged in agricultural activities

• 43% of the entire arable land is under cultivation

• Cultivable land area is 4.67 Million Hectare and forest land area is 6.35 Million Hectare

Chhattisgarh: Agricultural Overview

Grains & Ce-reals48%

Fruits13%

Vegetables 35%

Spices4%

Agricultural Production by Type (FY2014)

Source: Advance Fourth Estimate Commissioner land record (SASA), Directorate Horticulture and Farm Forestry, Chhattisgarh

FY2011 FY2012 FY2013 FY2014

13.3 13.4

15.6 15.5

Agricultural Production (Million Metric Tons)

CAGR 5.2%

Source: Ministry of Agriculture; Government of India, Advance Fourth Estimate Commissioner Land Record (SASA); Directorate Horticulture and Farm Forestry, Chhattisgarh

Grains & Cereals

• Grains & Cereals accounted for 48% of state’s agricultural produce in FY2014

• The major rice producing districts are Bastar, Durg, Raigarh Sarguja, Rajnandgaon, Kankar, Dantewara, Bilaspur, Janjgir, etc.

• The state accounts for more than 5% of the total rice production in the country

• Grains & Cereals production increased by 7.1% in FY2014 from FY2011

Vegetables

• Chhattisgarh is the 12th largest producer of vegetables in the country

• Bilaspur, Durg, Kondagoan, Surajpur, Surguja and Korba divisions accounted for 53% of total area under vegetables’ cultivation

• The state constitutes 3.4% of the total vegetables produced in India

• Vegetables’ production has shown significant growth of 36% in FY2015 from FY2011

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Rice90%

Pulses4%

Coarse cereal4%

Wheat2%

Grains & Cereals Production by Type (%), FY2014

Tomato16%

Brinjal11%

Potato10%

Cauli-flower

7%Onion

6%Cabbage

6%

Bhindi (Okra)

6%

Bottel Gaurd

4%

Others34%

Vegetables Production by Type (%), FY2015

Source: Advance Fourth Estimate Commissioner land record (SASA)

Source: Directorate Horticulture and Farm Forestry, Chhattisgarh

Fruits

• Chhattisgarh is the14th largest producer of fruits in the country .

• Bilaspur, Raigarh, Korba, Kanker, Jagdalpur and Surguja divisions accounted for 45% of total area under fruit cultivation

• The state accounted for 2.1% of the total fruits produced in India

• Fruit production grew by 37.5% from FY2011 to FY2015

Spices

• In FY2015, a total area of around 91,115 Hectare is under spices’ cultivation

• Raigarh, Bilaspur, Korba, Kondagoan, Surguja, Durg and Balrampur divisions accounted for 55% of total area under spices cultivation

• Spices production grew by 31.5% from FY2011 to FY2015

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Banana26%

Mango18%

Papaya13%

Jack Fruit8%

Gauva8%

Lemon4%

Others23%

Fruit Production by Type (%), FY2015

Chilli39.2%

Ginger18.6%

Turmeric17.7%

Coriander11.0%

Garlic3.5%

Methi2.1%

Others7.8%

Spices Production by Type (%), FY2015



Upcoming Mega Food Parks

Banana Processing

• Banana production constitutes a major share of almost 26% in the total fruits produced in Chhattisgarh in FY2015.

• Key Varieties: TC-Grand-9, Bhusawali, Barasi Dwarf and G-9 Sendri • Banana Processing Plants are majorly present across Bilaspur, Durg

and Raipur • These districts account for one third of the total banana available for

processing in Chhattisgarh . • Value added products include Banana Syrup, Puree, Concentrate,

Pulp Chips, Wafers, Powder etc.

Food Processing Opportunities - Banana

Production Consumption Potential for Processing

564.4

80.0

484.4

Banana - Potential for Processing (‘000 Metric Tons), FY2015

Source: Directorate Horticulture and Farm Forestry Chhattisgarh, RNCOSNote: Consumption and Potential for Processing derived by RNCOS

Mango Processing

• Mango occupies 30% of the total area under fruit cultivation in FY2015. • Key Varieties: Dashahri, Langra, Amrapali, Choussa • Producing Districts: Koriya, Surajpur, Balrampur, Jashpur and Surguja • These districts account for 43% of the total production of mango in

Chhattisgarh• Mango processing plants are mainly present in Korba and Surajpur• Value added products include Mango Pulp, Pickles, Beverages, Powder,

Syrup etc.

Food Processing Opportunities - Mango


386.6

70.0

316.6

Mango - Potential for Processing (‘000 Metric Tons), FY2015


Papaya Processing

• Papaya occupied 5.5% of the total area under fruit cultivation and had a production of 13% of the total fruit production in FY2015

• Chhattisgarh produces about 6% of papaya and is the 6th leading producer of papaya in the country

• Key varieties: Taiwan, Pusa, Nanha and CO2 • Major Producing Districts: Bemetara, Bilaspur, Mungeli, Raipur and

Baloda Bazaar • Bemetara is best suited for papaya processing plant• Value added products include Fruit Candies, Papaya Concentrate, Pulp,

Puree, Papain etc

Food Processing Opportunities - Papaya


275.8

66.0

209.8

Papaya - Potential for Processing (‘000 Metric Tons), FY2015


Guava Processing

• Guava occupied 8.7% of the total area under fruit cultivation in FY2015

• The state accounts for almost 4.2% of total Guava produce in the country

• Key varieties: KG guava, Allahabadi Safed, Lalit and Lucknow 49 • Major Producing Districts: Janjgir Champa, Bilaspur, Korba,

Raigarh while Janjgir Champa is the best suited location for guava processing plant

• Value added products include Guava Pulp, Juice, Concentrate, Jelly, Puree etc.

Food Processing Opportunities - Guava


171.9

6.0

165.9

Guava - Potential for Processing (‘000 Metric Tons), FY2015


Maize Processing

• Maize is one of the major cereals of the state • Major producing districts

– Northern districts: Surguja, Surajpur, Balrampur – Southern districts: Kondagaon, Kanker, Jagdalpur

• Both Northern and Southern regions contribute 30% each of the total maize production in Chhattisgarh

• Kondagaon is an ideal location for setting up maize Processing plants.

• Value added products include Corn Starch, Dextrin, Corn flakes, Ready-to-eat Snacks, Oil etc.

Food Processing Opportunities - Maize


745

12

733

Maize - Potential for Processing (‘000 Metric Tons), FY2015

Source: RNCOS

Rice Processing

• Rice is the major crop and contributes 90% of the total production of grains and cereals in the state

• The major rice producing districts are Bastar, Durg, Raigarh Sarguja, Rajnandgaon, Kankar, Dantewara, Bilaspur, Janjgir, etc.

• There are more than 650 rice mills present across the state• Chhattisgarh contributes more than 5% of the total rice production

in the country • Value added products include Cereal Bars, Rice Wafers, Pasta,

Puffed Rice, Flattened Rice, Ready-to-eat Snacks etc.

Food Processing Opportunities - Rice

FY2011 FY2012 FY2013 FY2014

6159 6028

73406716

Rice Production (‘000 Metric Tons), FY2011 to FY2014

CAGR 2.9%

Source: Ministry of Agriculture, Government of India, Advance Fourth Estimate Commissioner Land Record (SASA)

• Total number of cold storage facility in the state is 76

• Total cold storage capacity is 3.8 Lakh Metric Tons

• Raipur and Bastar districts account for around 60% of the total cold storage facilities by capacity

• Warehouse facility available with the state: – State Warehouse Corporation (SWC) - 14.03 Lakh

Metric Tons – Centre Warehouse Corporation (CWC) - 2.92 Lakh

Metric Tons– Storage facility available with Food Corporation of

India (FCI) - 5.12 Lakh Metric Tons

• Ensuring sufficient cold storage capacity in each district will reduce the wastage and thus increase the earning of the farmers

• For the holistic development of horticulture, the state needs to spread cold storage in clusters that have high degree of deficiency of storage facility in comparison to their share of horticulture produce

• The state needs an additional 3 Lakh Metric Tons of storage facility for horticulture produce

Potential Cluster for Storage Infrastructure Facility

Future Prospects

Establishment of Food Testing Facilities

Special Schemes for New Entrepreneurs

Need for Center of Excellence

High Quality Farming

Creation of Robust Cold Chain/ Supply Chain Network

Encourage R&D for Product Development

Advanced & Cost Effective Process Technology

SHUSHMUL MAHESHWARICEO

RNCOSE mail: [email protected]

Website: www.rncos.comPhone: +91 120 4224700 /01 / 02/

03Address: A-142, Sector 63,

Noida, Uttar PradeshIndia - 201301

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