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
Policy
Support
  • 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?

1
75% of Market was dominated by the Unorganized and Small Scale Sector.1
2
Extreme void and vegetable Processed Food Market due to absence of Integrated Processing Centers and spoilage in storage and transit.
3
Unorganized Sector with access to 70% resources is only able to generate 50% worth of Food Products.
4
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