The Big Opportunity

INDIA - The Building Blocks Fueling Growth

  • India holds 2nd largest arable land in the world; with 20 agri-climatic regions, all 15 major climates in the world exist in India. The country also possesses 46 of the 60 soil types in in the world
  • Consumption Expenditure is likely to reach USD3.6 trillion by 2020, up from an estimated USD1.0 trillion in 2010
  • India is the largest producer of Pulses, Milk, Cashew, Mangoes and Buffalo Meat, also the second largest producer of Tea, Wheat, Sugarcane and Rice
  • Strategic geographic and proximity to food importing nations, makes India favourable for export of processed foods.
  • Globally, India has the largest livestock Population which includes more than 300 million cattle; the segment contributes about 25 percent of the country's farm GDP.
  • Agriculture employs 58% of the Indian Population and it is the principal source if livelihood

INDIA - Critical Factors Fueling Industry Growth

Strong Fundamentals and Policy Support Aiding Growth
Strong Domestic Demand
  • Rising Disposable Incomes
  • Growing middle class urbanisation, a young Population
  • Changing lifestyle and food habits
Rising Export Opportunities
  • India's greater integration with the Global Economy
  • Increasing export with advantage of Proximity to key export destination
  • Expected spike in global demand as emerging markets grow as a fast pace
Supply-side Advantages
  • Favourable climate for agriculture wide variety of crops
  • Large livestock based aids Diary and Meat Processsing Sector
  • Inland water bodies, long coastline help Marine Products
  • Vision 2015 targets trebling of Food Processing Sector
  • Mega Food Parks, Agri Export Zones to attract FDI and Infrastructure
  • Approval of National Mission on Food Processing

Why is the Opportunity Big In India?

75% of Market was dominated by the Unorganized and Small Scale Sector.1
Extreme void and vegetable Processed Food Market due to absence of Integrated Processing Centers and spoilage in storage and transit.
Unorganized Sector with access to 70% resources is only able to generate 50% worth of Food Products.
Organized Sector without proper infrastructure support still contributes to 50% of business with only a 30% consumption.

What is fueling domestic growth?

Rising disposable Incomes
  • Strong growth in per - capita income has resulted in greater demand for food items
  • There has also been a shift in demand - From carbohydrates to Meat products (in line with the various phases of economic growth), To Convenience Foods, Organic and Diet Foods
  • Incomes have risen at a brisk pace in India and will continue rising given the country's strong economic growth prospects Nominal per capita income is estimated (IMF) to have recorded a CAGR 01 90 per cent over 2000-13
Growing middle class urbanisation
  • Strong economic growth since the 1990s has led to-Rapid urbanisation and a growing middle class, Nuclear families and dual income household
  • Coupled with a young Population and increasing media penetration, this has led to a surge in demand for Packaged Food. Alcoholic and Non-alcoholic Beverages, Snacks, Savouries. etc.

What would it take to become a part of a $ 260 billion food processing industry in India Which is poised to growing at a rate of 15% and more