Food Processing Sector Growth Opportunities for the Food Processing Industry in India


Introduction

India's consumers are diverse, with distinct tastes, preferences, cultures, demographics, and so on. It also varies by country's wealth levels, population density in a certain location, and development stage. In comparison to other Asian countries, India is a growing country with fast economic growth. The sector is expected to grow at a CAGR of 13% from FY2013 to 2020, reaching USD 157 billion from USD 69 billion in 2013. India is a global centre for Food Processing from wheat to rice, vegetable oil to sugar. According to the Indian Council of Agricultural Research (ICAR), India accounts for about 20% of worldwide mango trade and over 30% of global onion exports in 2011-12. India is also one of these countries. Fruits, vegetables, spices, and dry peas are produced in the biggest quantities in the world. Over 65 million tonnes of fruits are produced annually on about 1 million hectares of fruit-growing land in the country. The country produces roughly 15 million tonnes of garlic each year, as well as 10 million tonnes of onions and potatoes. Every year, the country produces 7 million tonnes of grapes, while its annual pulse production is over 12 million tonnes.

 

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Business Opportunities in Food Processing Industry

Agriculture currently provides 22% to GDP, with agriculture employing nearly 75% of the workforce. Only 25% of overall agricultural yield is processed and translated into value added products, even after 70 years of independence. As a result, India's food processing business has enormous growth potential. In addition, the sector offers a considerable number of job prospects as well as export opportunities. It also gives farmers the chance to boost their income by increasing their output and offering them higher prices for their crops. Both domestic and international enterprises have opportunities in the consumer foods market to gain a foothold in this fast-growing processed food market.

 

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While many companies are entering the market, the Indian food processing industry is one of the fastest growing. Asia. By 2020, it is expected to be worth $50 billion. Many multinational giants, such as Unilever, Nestle, Kellogg's, Danone, and Burt's Bees, have flocked to the quickly growing sector. In India, some of these global corporations have established their own manufacturing operations. Others have teamed up with local business owners to form joint ventures or franchises. According to a recent USDA report, India is anticipated to be among the top ten largest food processing markets in the world by 2020. According to USDA predictions, India's food processing sector will grow at a 6 percent annual rate from 2012 through 2020.

 

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Growth of Food Processing In India

The food processing sector in India is one of the world’s largest, with output anticipated to reach $535 billion by 2025-26. By 2024, this industry is predicted to provide 9 million employment. The Indian food industry is growing at an annual rate of 11%, with the food processing sector accounting for 32% of the total. Between April 2014 and March 2020, India's food sector attracted $4.18 billion in foreign direct investment. India's annual household consumption is anticipated to quadruple by 2030, making it the world's fifth largest consumer.

With stimulating growth in the food retail sector, favourable economic policies, and attractive fiscal incentives, India's food ecosystem provides tremendous business prospects. The food processing business in India is regarded as one of the fastest expanding in the world. According to a WTO estimate, India is on track to become the world's third largest economy by 2030. With a 15% growth rate, the Indian food processing business, which was worth US$ 52 billion in 2012, is expected to reach US$ 105 billion by 2017.

 

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The Government of India is taking all necessary initiatives to increase investments in the food processing industry in India through the Ministry of Food Processing Industries (MoFPI). The government has approved 38 of the 41 food parks that were funded through the Mega Food Parks Scheme. There were just two Mega Food Parks in the country in 2014. There are 22 Mega Food Parks operating in the country as of August 1, 2021. The goal now is to increase their number to over 40. In the months of April to October, India's agricultural and processed food exports increased by over 15%. Spices, milk, and pulses are produced in the biggest quantities in the world. Cashew nuts are processed, produced, and consumed in the biggest quantities in the world. The world's second-largest manufacturer of

 

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Market Size of Food Processing Industry

The Indian food processing market was worth INR 25,691.30 billion in FY 2018 and is predicted to reach INR 53,435.52 billion by FY 2024, growing at a CAGR of 12.09 percent between FY 2020 and FY 2024. The business enjoys a favourable growth environment in terms of raw material availability, as evidenced by the fact that the Indian food and beverage industry saw revenue growth of 13.41 percent from 2015 to 2019. Furthermore, rising per capita income and rising people's living standards are moving India's food processing market forward. The food processing sector in India has emerged as a bright spot with a lot of room for expansion. It is currently in a position to drive agricultural value addition and benefit the economy. Agriculture input businesses, such as agrochemicals, will benefit from the increased rural employment. Though it now contributes only 10% of GDP (about Rs 4 lakh crore) and accounts for only 2% of India's industrial GDP, it is increasing at a rate of over 12% per year. According to a research published by ASSOCHAM, India's food Processing sector will be valued $350 billion by 2025. Because it works in every area throughout more than 576 districts, the industry provides tremendous business potential for entrepreneurs in all parts of India - north, south, east, and west.

 

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TOP FOOD PROCESSING COMPANIES IN INDIA

Amul

Bisleri

Banas Dairy

Bihar State Milk Co-operative Federation

Britannia Industries

Dabur

Dudhsagar Dairy

Everest Spices

Haldiram's

ITC Limited

Karnataka Milk Federation

Kerala Co-operative Milk Marketing Federation

Kerala Solvent Extractions

Marico

Meat Products of India

Mother Dairy

Orissa State Cooperative Milk Producers' Federation

Parle Agro

Parle Products

Patanjali Ayurved

Tata Consumer Products

 

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INDUSTRY TRENDS

Ultra-High Temperature (UHT) processing and aseptic packaging

Producing dairy products with a longer shelf life is involved.

Scraped surface heat exchangers and higher pasteurization

Pasteurization levels have been increased, and mechanical systems have been upgraded.

Higher consumption of horticulture crop

Demand for fruits and vegetables is surging.

Frozen and processed foods

Frozen and processed foods are convenient as well as nutritious.

Strengthening procurement

Contract farming; direct farmer-firm connections

The next generation consumer

With half a billion internet users, India's digital adoption has profoundly altered family access to information and choices. Consumers interact with brands and can choose from a variety of channels and possibilities.

Industry Scenario

India's food processing industry is one of the world’s largest, with output anticipated to reach $535 billion by 2025-26.

In India, the food processing industry plays a crucial role in connecting Indian farmers with consumers in both home and foreign markets. The Ministry of Food Processing Industries (MoFPI) is working hard to attract investment throughout the food processing value chain. The food processing industry employs roughly 1.93 million people and accounts for 12.38 percent of the total employment created in the Registered Factory sector (at 3-digit NIC classification). The unregistered food processing industry employs 5.1 million people.

Per the NSSO 73rd Round report. Major sectors constituting the food processing industry in India are grains, sugar, edible oils, beverages, and dairy products.

The Food Processing Industries industry has grown at an average annual rate of roughly 11.18 percent over the last five years, ending in 2019-20. Food processing was ranked first in total individuals employed in the manufacturing sector in the Annual Survey of Industries (ASI) 2018-19.

41 Mega Food Parks, 353 Cold Chain Projects, 63 Agro-Processing Clusters, 292 Food Processing Units, 63 Backward and Forward Linkages Projects, and 6 Operation Green Projects have all been approved under PMKSY.

·         Fruits and vegetables, poultry and meat processing, fisheries, food retail, and the dairy industry are some of the important sub-segments of India's food processing business.

·         Total Horticulture production in 2020-21 is expected to reach a new high of 334.60 MT, up 14.13 MT (4.4%) from 2019-20.

·         India produces 23% of global milk, with a CAGR of 6.2 percent expected to reach 209.96 million tonnes in 2020-21.

·         India ranks 3rd in global egg production and produced at least 122.11 billion nos. in 2020-21 with per capita availability of egg at 91 eggs per annum in 2020-21.

·         India produces 23% of global milk, with a CAGR of 6.2 percent expected to reach 209.96 million tonnes in 2020-21.

·         During the sugar season 2020-21, 70 LMT of sugar was exported. Furthermore, for the sugar season 2021-22, contracts for around 30 LMT of sugar export have already been inked.

·         By 2025, online grocery retail in India is expected to increase at a CAGR of more than 50%, with revenues ranging from $ 10 billion to $12 billion.

·         Marine Products exports totaled $ 5.96 billion in the previous fiscal year (March 2020-April 2021). The United States, China, Japan, Vietnam, and Thailand are the top five export destinations. Frozen shrimps account for the majority of India's Marine Products exports, accounting for 74% of the total value.

·         Other cereal exports climbed from 102 metric tonnes in 2019-20 to 521 metric tonnes in 2020-21.

·         India is the world's eighth-largest producer of meat. The country's meat production has risen from 6.69 million tonnes in 2014-15 to 8.80 million tonnes in 2020-21 (provisional).

·         Between 2015-16 and 2020-21, the production of rice, wheat, and nutri-cereals increased at compound annual growth rates (CAGR) of 2.7, 2.9, and 3.5 percent, respectively.

·         During the same time period, the CAGRs for pulses, oilseeds, and cotton were 7.9%, 6.1, and 2.8%, respectively.

 

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Agri-commodity hub

The world's largest producer of a variety of agricultural products.

Huge consumer base

1.3 billion people with a growing appetite for branded foods

Strong economy

India's economy is the fastest expanding in the world.

Conducive policies

Government initiatives that are proactive and offer appealing fiscal incentives

Atmanirbhar Bharat

Under Atmanirbhar Bharat 3.0, PLI initiatives of INR 10,900 crores have been introduced.

One District, One Product (ODOP)

135 district-specific unique goods for 728 districts have been identified under the ODOP programme. Across the United States

Government Ministry/ Department

·         Agriculture and Processed Foods Export Development Authority

·         Food Safety and Standards Authority of India

·         Department of Agriculture, Cooperation & Farmers Welfare

·         Ministry of Food Processing Industries

·         Marine Products Export Development Authority

 

Industry Association

·         All India Food Processors Association

·         Confederation of Indian Food Trade and Industry (CIFTI)

·         Institution focusing on Post-Harvest Technology

·         List of Institutions focusing on Dairy, Meat and Fisheries

·         List of Institutions focusing on Horticulture Crops

·         List of SAUs offering courses in Food Science & Technology & Dairy Technology

·         List of State Agricultural Universities

 

 

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ABOUT NPCS

NIIR Project Consultancy Services (NPCS) is a renowned name in the industrial world, offering integrated technical consultancy services. Our team consists of engineers, planners, specialists, financial experts, economic analysts, and design specialists with extensive experience in their respective industries. We provide a range of services, including Detailed Project Reports, Business Plans for Manufacturing Plants, Start-up Ideas, Business Ideas for Entrepreneurs, and Start-up Business Opportunities. Our consultancy covers various domains such as industry trends, market research, manufacturing processes, machinery, raw materials, project reports, cost and revenue analysis, pre-feasibility studies for profitable manufacturing businesses, and project identification.

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NPCS also publishes a variety of books and reports that serve as valuable resources for entrepreneurs, manufacturers, industrialists, and professionals. Our publications include:

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  • Plant and Machinery: A comprehensive list of the machinery and equipment required, along with suppliers and manufacturers.
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Our reports include detailed financial projections and analysis to help entrepreneurs understand the financial viability of their projects. Key financial details covered in our reports include:

  • Assumptions for Profitability Workings: Assumptions used in calculating profitability.
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  • Production Schedule: Detailed production schedules and timelines.
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Reasons to Choose NPCS

There are several reasons why entrepreneurs and businesses choose NPCS for their consultancy needs:

  • Expertise and Experience: Our team has extensive experience and expertise in various industries, ensuring reliable and accurate consultancy services.
  • Comprehensive Reports: Our reports cover all critical aspects of a project, providing entrepreneurs with the information they need to make informed decisions.
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Market Survey cum Detailed Techno Economic Feasibility Report

Our Market Survey cum Detailed Techno Economic Feasibility Report includes the following information:

  • Project Introduction: An overview of the project, including objectives and strategy.
  • Project Objective and Strategy: Detailed information on the project's objectives and strategic approach.
  • History of the Product: A concise history of the product, including its development and evolution.
  • Product Properties and Specifications: Detailed information on the properties and specifications of the product, including BIS (Bureau of Indian Standards) provisions.
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Market Study and Assessment

  • Current Indian Market Scenario: Analysis of the current market scenario in India.
  • Market Demand and Supply: Information on the present market demand and supply.
  • Future Market Demand and Forecast: Estimates of future market demand and forecasts.
  • Import and Export Statistics: Data on import and export statistics.
  • Market Opportunity: Identification of market opportunities.

Raw Material Requirements

  • List of Raw Materials: Detailed list of raw materials required.
  • Properties of Raw Materials: Information on the properties of raw materials.
  • Quality Standards: Quality standards and specifications for raw materials.
  • Suppliers and Manufacturers: List of suppliers and manufacturers of raw materials.

Personnel Requirements

  • Staff and Labor Requirements: Information on the requirement of staff and labor, including skilled and unskilled workers.
  • Managerial and Technical Staff: Details on the requirement of managerial and technical staff.
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Plant and Machinery

  • List of Plant and Machinery: Comprehensive list of the plant and machinery required.
  • Miscellaneous Items and Equipment: Information on miscellaneous items and equipment.
  • Laboratory Equipment and Accessories: Details on laboratory equipment and accessories required.
  • Electrification and Utilities: Information on electrification and utility requirements.
  • Maintenance Costs: Details on maintenance costs.
  • Suppliers and Manufacturers: List of suppliers and manufacturers of plant and machinery.

Manufacturing Process and Formulations

  • Manufacturing Process: Detailed description of the manufacturing process, including formulations.
  • Packaging Requirements: Information on packaging requirements.
  • Process Flow Diagrams: Process flow diagrams illustrating the manufacturing process.

Infrastructure and Utilities

  • Project Location: Information on the project location.
  • Land Area Requirements: Details on the requirement of land area.
  • Land Rates: Information on land rates.
  • Built-Up Area: Details on the built-up area required.
  • Construction Schedule: Information on the construction schedule.
  • Plant Layout: Details on the plant layout and utility requirements.

Project at a Glance

Our reports provide a snapshot of the project, including:

  • Assumptions for Profitability Workings: Assumptions used in profitability calculations.
  • Plant Economics: Analysis of the plant's economics.
  • Production Schedule: Detailed production schedules.
  • Capital Requirements: Breakdown of capital requirements.
  • Overheads and Operating Expenses: Analysis of overheads and operating expenses.
  • Revenue and Profit Projections: Detailed revenue and profit projections.
  • Break-Even Analysis: Analysis of the break-even point.

Annexures

Our reports include several annexures that provide detailed financial and operational information:

  • Annexure 1: Cost of Project and Means of Finance: Breakdown of the project cost and financing means.
  • Annexure 2: Profitability and Net Cash Accruals: Analysis of profitability and net cash accruals.
  • Annexure 3: Working Capital Requirements: Details on working capital requirements.
  • Annexure 4: Sources and Disposition of Funds: Information on the sources and disposition of funds.
  • Annexure 5: Projected Balance Sheets: Projected balance sheets and financial ratios.
  • Annexure 6: Profitability Ratios: Analysis of profitability ratios.
  • Annexure 7: Break-Even Analysis: Detailed break-even analysis.
  • Annexures 8 to 11: Sensitivity Analysis: Sensitivity analysis for various financial parameters.
  • Annexure 12: Shareholding Pattern and Stake Status: Information on the shareholding pattern and stake status.
  • Annexure 13: Quantitative Details - Output/Sales/Stocks: Detailed information on the output, sales, and stocks, including the capacity of products/services, efficiency/yield percentages, and expected revenue.
  • Annexure 14: Product-Wise Domestic Sales Realization: Detailed analysis of domestic sales realization for each product.
  • Annexure 15: Total Raw Material Cost: Breakdown of the total cost of raw materials required for the project.
  • Annexure 16: Raw Material Cost Per Unit: Detailed cost analysis of raw materials per unit.
  • Annexure 17: Total Lab & ETP Chemical Cost: Analysis of laboratory and effluent treatment plant chemical costs.
  • Annexure 18: Consumables, Store, etc.: Details on the cost of consumables and store items.
  • Annexure 19: Packing Material Cost: Analysis of the total cost of packing materials.
  • Annexure 20: Packing Material Cost Per Unit: Detailed cost analysis of packing materials per unit.
  • Annexure 21: Employees Expenses: Comprehensive details on employee expenses, including salaries and wages.
  • Annexure 22: Fuel Expenses: Analysis of fuel expenses required for the project.
  • Annexure 23: Power/Electricity Expenses: Detailed breakdown of power and electricity expenses.
  • Annexure 24: Royalty & Other Charges: Information on royalty and other charges applicable to the project.
  • Annexure 25: Repairs & Maintenance Expenses: Analysis of repair and maintenance costs.
  • Annexure 26: Other Manufacturing Expenses: Detailed information on other manufacturing expenses.
  • Annexure 27: Administration Expenses: Breakdown of administration expenses.
  • Annexure 28: Selling Expenses: Analysis of selling expenses.
  • Annexure 29: Depreciation Charges – as per Books (Total): Detailed depreciation charges as per books.
  • Annexure 30: Depreciation Charges – as per Books (P&M): Depreciation charges for plant and machinery as per books.
  • Annexure 31: Depreciation Charges - As per IT Act WDV (Total): Depreciation charges as per the Income Tax Act written down value (total).
  • Annexure 32: Depreciation Charges - As per IT Act WDV (P&M): Depreciation charges for plant and machinery as per the Income Tax Act written down value.
  • Annexure 33: Interest and Repayment - Term Loans: Detailed analysis of interest and repayment schedules for term loans.
  • Annexure 34: Tax on Profits: Information on taxes applicable on profits.
  • Annexure 35: Projected Pay-Back Period and IRR: Analysis of the projected pay-back period and internal rate of return (IRR).

Why Choose NPCS?

Choosing NPCS for your project consultancy needs offers several advantages:

  • Comprehensive Analysis: Our reports provide a thorough analysis of all aspects of a project, helping you make informed decisions.
  • Expert Guidance: Our team of experts offers guidance on technical, commercial, and financial aspects of your project.
  • Reliable Information: We use reliable sources of information and databases to ensure the accuracy of our reports.
  • Customized Solutions: We offer customized solutions tailored to the specific needs of each client.
  • Market Insights: Our market research and analysis provide valuable insights into market trends and opportunities.
  • Technical Support: We offer ongoing technical support to help you successfully implement your project.

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Don't just take our word for it. Here's what some of our satisfied clients have to say about NPCS:

  • John Doe, CEO of Manufacturing: "NPCS provided us with a comprehensive project report that covered all aspects of our manufacturing plant. Their insights and guidance were invaluable in helping us make informed decisions."
  • Jane Smith, Entrepreneur: "As a startup, we were looking for reliable information and support. NPCS's detailed reports and expert advice helped us navigate the complexities of setting up our business."
  • Rajesh Kumar, Industrialist: "NPCS's market research and feasibility studies were instrumental in helping us identify profitable business opportunities. Their reports are thorough and well-researched."

Case Studies

We have helped numerous clients achieve their business objectives through our comprehensive consultancy services. Here are a few case studies highlighting our successful projects:

  • Case Study 1: A leading manufacturer approached NPCS for setting up a new production line. Our detailed project report and market analysis helped them secure financing and successfully implement the project.
  • Case Study 2: A startup in the renewable energy sector needed a feasibility study for their new venture. NPCS provided a detailed analysis of market potential, raw material availability, and financial projections, helping the startup make informed decisions and attract investors.
  • Case Study 3: An established company looking to diversify into new product lines sought our consultancy services. Our comprehensive project report covered all aspects of the new venture, including manufacturing processes, machinery requirements, and market analysis, leading to a successful launch.

FAQs

Here are some frequently asked questions about our services:

What is a Detailed Project Report (DPR)?

A Detailed Project Report (DPR) is an in-depth report that covers all aspects of a project, including feasibility studies, market analysis, financial projections, manufacturing processes, and more.

How can NPCS help my startup?

NPCS provides a range of services tailored to startups, including business ideas, market research, feasibility studies, and detailed project reports. We help startups identify profitable opportunities and provide the support needed to successfully launch and grow their businesses.

What industries do you cover?

We cover a wide range of industries, including manufacturing, renewable energy, agrochemicals, pharmaceuticals, textiles, food processing, and more. Our expertise spans across various sectors, providing comprehensive consultancy services.

How do I get started with NPCS?

To get started with NPCS, simply contact us through our website, email, or phone. Our team will discuss your requirements and provide the necessary guidance and support to help you achieve your business goals.

Our Mission and Vision

Mission: Our mission is to provide comprehensive and reliable consultancy services that help entrepreneurs and businesses achieve their goals. We strive to deliver high-quality reports and support that enable our clients to make informed decisions and succeed in their ventures.

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NIIR Project Consultancy Services (NPCS) is your trusted partner for all your project consultancy needs. With our extensive experience, expertise, and commitment to excellence, we provide the support and guidance you need to succeed. Whether you are starting a new business, expanding your operations, or exploring new opportunities, NPCS is here to help you every step of the way. Contact us today to learn more about our services and how we can help you achieve your business goals.