Indian food industry

Submitted by:Click to edit Master subtitle style Divesh kumar Ishan chawla

4/13/12

Contents
INDIAN FOOD INDUSTRY KEY GROWTH DRIVERS MAJOR CHALLENGES GROWTH OPPORTUNITIES OUR SUGGESTIONS THE INDIAN CONSUMER NEEDS FROM

PROCESSED FOODS

CHANGING SPENDING PATTERNS

4/13/12 CHALLENGES AND OPPORTUNITIES

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 a wide range of crops

Large consumer class a population of 1.13

billion with rapidly increasing middle class (~ 20 million) towards high value crops and processed food

Shifting food habits from basic food items 4/13/12

Indian Food Industry stands at $ 200 bn in

06-07, of which Food

Processing industry contributes a share of 43% ($ 85 bn) INDIAN FOOD INDUSTRY: 2002-03 2006-07 2010-11* 2014-15*
KEY STATISTICS

Directly employs about 2 mn people

Highly fragmented and Food Industry Size ($ billion) 175

Food Processing Industry Size ($ 70 billion) % Food Processing Industry in total Food Industry Size of organized sector in Food Processing Industry ($ billion) 4/13/12 % organized sector in Food 40%

unorganized sector

dominated by the 200 250 300

85 43% 23 27% 110 44% 37 36% 150 50% 60 40%

13 19%

Food processing
Food processing is the methods and

techniques used to transform raw ingredients into food for human consumption.

One Off Production Batch Production Mass production Just In Time

4/13/12

KEY GROWTH DRIVERS

Major contributors are staple and other

foods(like food grains, sugar,edible oils, pulses, tea,spices )

Dairy and F&V contributes 23% each Packaged Foods segment is the fastest

growing across sectors

4/13/12

Key Growth Drivers

Huge Production Base Changing Consumers Organized Retail and Food Retail Export Opportunities Government Support

4/13/12

Key Growth Drivers 1. huge production base

4/13/12

2. Changing Consumers

4/13/12

2. Changing Consumers (contd)

4/13/12

2. Changing Consumers (contd)

4/13/12

2. Changing Consumers (contd)

4/13/12

2. Changing Consumers (contd)

4/13/12

3. Organized Retail and Food Retail

4/13/12

5. Government Support
The Government has introduced several

schemes to provide financial assistance for setting up and modernizing of food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector.

4/13/12

3 key themes

4/13/12

Key Challenges

4/13/12

Growth Opportunities

4/13/12

Organic food
Organic farming is a production system which

avoids or largely excludes the use of synthetically compounded fertilizers, pesticides , growth regulators and livestock feed additives . To the maximum extent feasible it relies upon crop rotations, crop residues, animal wastes, mechanical cultivation, mineral bearing rocks and aspects of biological pest control to maintain soil productivity and tilth to supply plant nutrients and to control insects, weeds and other pests.

4/13/12

Problems created by Green Revolution

Reduced genetic diversity. Soil erosion. Water shortages. Reduced soil fertility. Micronutrient deficiencies. Soil contamination. Reduced availability of nutritious food crops. The displacement of vast numbers of small
4/13/12

Increased vulnerability to pests.

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 to sufficient safe and nutritious food to meet their direct needs and food preferences 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 requirements of organic food 4/13/12 products and India should seize the

Mobile food Business

Though the idea is a longstanding part of American and world culture, the street food industry has never enjoyed so much popularity or publicity.

4/13/12

Potential customers
There are several demographic groups that

can provide potential customers. where quick service is crucial

a) breakfast or lunch crowd at office parks, b) tourists, who might want to experience your

home-town favorites

c) event attendees who want a bite to eat

between innings or before the headlining band goes on craving the types of gluttonous, greasy

d) late-nighters, those hungry club-goers 4/13/12

To earn money in mobile food service means

being hungry. It means moving fast before too many players get 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 of popular favorites), and finding locations that aren't already teeming with competitors.

Mobile lunch trucks have long been based on

the simple concept of bringing quality food to people in areas where there are not many 4/13/12 food choices. other

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.

4/13/12

Thanks
4/13/12