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The market

  • The food processing industry ranks fifth in size, contributing 6.3 percent to GDP and 13 percent to exports.
  • India is one of the world’s largest producers of wheat, milk, spices, fruits, vegetables, tea, rice and sugarcane.
  • As of 2008-09 agriculture contributed to 17.5 percent of GDP.
  • Processed food market is growing at over 14.7 percent p.a.

Opportunities:

  • Across the value chain for ancillary businesses such as cold chain infrastructure, packaging, warehousing, containerization, agri inputs and irrigation etc.
  • Contract farming initiatives leading to greater private sector involvement e.g. Reliance Industries, has signed a deal with the Punjab government to source about 700,000 liters of milk everyday from farmers in the state.
  • Key investment opportunities, both for catering to the domestic market as well as for exports; exist in many areas of food processing in India. Milk and milk products, meat and poultry, fruits and vegetables are some of the areas with huge potential.

Industry Snapshot

Size (2009) USD 200 bn(as per DNA India)
Share of Organized sector (2007) 27%(The Indian Food Industry, Technopak)
Volume-wise World’s second largest producer of food next only to china
Exports (2007-08) USD 62.5 bn
Total projected investment (2011) USD 23.5 bn
Select foreign players in India Hershey, Lotte Confectionary, New Vernon PE Ltd., Indo Nissin Foods
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