2015 india

1. FOOD AND BEVERAGE INDUSTRY
Submitted by -
Sakshi Taneja
B.S.SC 5th semester
137115

2. • The Indian food and beverage (F&B) sector, which is
currently growing at 23 to 24 per cent annually, is likely
to touch Rs 3.80 lakh crore by 2017.Food and beverage
processing in India has been a rising star in recent
years.
• The Indian food processing industry stands at $135
billion and is estimated to grow with a CAGR of 10 per
cent to reach $200 billion by 2015. The food processing
industry contributed 7 per cent to India’s GDP. The
industry employs 13 million workers directly. Value
addition of food products is expected to increase from
the current 8 per cent to 35 per cent by the end of
2025.

3. INDUSTRY OVERVIEW
 India is the world’s second largest producer of food next to
China.
 The food processing industry is one of the largest industries in
India-it is ranked fifth in terms of production, consumption,
export and expected growth.
 The online food ordering business in India is in its nascent stage,
but witnessing exponential growth. The organised food
business in India is worth US$ 48 billion, of which food delivery is
valued at US$ 15 billion. With online food delivery players like
FoodPanda , Zomato, TinyOwl.

4. FOOD INDUSTRY:
 The size of the Indian Food Industry is estimated at Rs
8,80,000 crores (US $ 200 billion) in 2006-07 and is
slated to reach Rs 1,320,000 crores (US $ 300 billion) by
2015 with the increasing share of processed food (in
value terms) from 43 percent to 50 percent.
 Food is the biggest expense for an urban Indian
household. About 38.6% of the total consumption
expenditure of households was spent on food in 2011-
12.
 The total household expenditure on the purchase of
food items in 2012-13 was INR 11 Trillion. An average
household in India spent INR 41,856 on food.

5.  The new wave in the food industry is not only about foreign
companies arriving here attracted by the prospective size of the
market While US brands such as McDonald's, Pizza Hut and
Kentucky Fried Chicken have become household names, more
are on their way.
 . It is also about the migration of the Made in India tag on food
products traveling abroad. Indian food brands and fast moving
consumer goods (FMCGs) are now increasingly finding prime
shelf-space in the retail chains of the US and Europe. These
include Cobra Beer, Bikanervala Foods, MTR Foods' ready-to-eat
food stuff, ITC's Kitchen of India
 Favourable economic and cultural transformation and a shift in
attitudes and lifestyles have consumers experimenting with
different cuisine, tastes and new brands. There is an awareness
and concern for wellness and health, for high protein, low-fat,
wholegrain, organic food.

6. 0% 5% 10% 15% 20% 25% 30% 35%
BEER
Meat
Dairy
Fruits & Vegetables
Marine and Fish
Packages goods
Poultry
Wine
Growth rate of Key sectors.
Percenatge

7. The Ministry of Food Processing, Government of
India indicates the following segments within the
Food Processing industry:
Dairy – milk, milk powder, ice cream, butter, cheese and ghee
Fruits & Vegetables – Slices, Pulps, Juices, Concentrates, Beverages,
Potato wafers/ chips etc
Grains & Cereals – Flour, Bakery products, Corn flakes, Starch,
Glucose, Malted foods, Vermicelli, Beer and malt extracts
Fisheries – Frozen and canned foods mainly in fresh form
Meat & Poultry – Frozen and packed foods mainly in fresh form
Consumer goods, which includes snack food, biscuits, ready-to-eat
foods, alcoholic and non-alcoholic

8. Some of the major investments in this sector in
the recent past are:
 Foodpanda acquires food ordering portals TastyKhana and Just Eat
India to strengthen its presence in India.
 Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly
known as 'Amul', plans to invest Rs 5,000 crore (US$ 753.16 million) to
establish ten new processing plants as well as expand the current
capacity to touch 32 million litres per day (MLPD) capacity by 2020.
 Restaurant search service Zomato raised US$ 110 million from existing
investors including Info Edge, Vy Capital and Temasek. Zomato is now
present in 22 countries and over 500 cities around the globe.
 Earlier this year , Zomato acquired Urbanspoon, for an undisclosed
amount, in an all-cash deal marking its entry into the US.
 Papa John’s India acquired the Pizza Corner from Global Franchise
Architects for an undisclosed sum. It is now the third-largest pizza
chain in India, after Domino's and Pizza Hut.
 ITC Limited plans to invest Rs 800 crore (US$ 120.51 million) to set up a
world-class food processing facility in Medak, a district located in
Telangana. The company has also formulated plans to enter the dairy
market.

9. Some of the major initiatives taken by the Government of
India to improve the food processing sector in India are
as follows:
• Ms Harsimrat Kaur Badal, Union Minister for Food Processing Industries,
Government of India inaugurated the first of its kind Rs 136 crore (US$ 20.49
million) mega international food park at Dabwala Kalan, Punjab.
• The Ministry of Food Processing Industries announced a scheme for human
resource development (HRD) in the food processing sector. The HRD scheme
is being implemented through State Governments under the National Mission
on Food Processing. The scheme has the following four components:
– Creation of infrastructure facilities for degree/diploma courses in food
processing sector
– Entrepreneurship Development Programme (EDP)
– Food Processing Training Centres (FPTC)
– Training at recognised institutions at State/National level
• The Food Safety and Standards Authority of India (FSSAI) under the Ministry of
Health and Family Welfare has issued the Food Safety and Standards (Food
Product Standards and Food Additives) Regulations, 2011 and the Food Safety
and Standards (Contaminants, Toxins and Residues) Regulations, 2011 which
prescribe the quality and safety standards, respectively for food products.

10. • The Ministry of Food Processing Industries has taken
some new initiatives to develop the food
processing sector which will also help to enhance
the incomes of farmers and export of agro and
processed foods among others.
• The Government of India has approved the setting up of five numbers of
Mega Food Parks in the states of Bihar, Maharashtra, Himachal Pradesh and
Chhattisgarh. The Government plans to set up 42 such mega food parks
across the country in next three to four years.
• In the Budget 2015-16, a corpus of Rs. 2,000 crore (US$ 301.27 million) was
created under National Bank for Agriculture and Rural Development
(NABARD) to provide cheaper credit to food processing industry. Excise duty
on plant and machinery for packaging and processing has been brought
down to six per cent from 10 per cent.
• The Government of India has planned to set up 42 mega food parks across
the country in next three to four years.

11. BEVARAGE -
• The beverage industry in India constitutes of around USD
230 million among the USD 65 billion food processing
industry. The major sectors in beverage industry in India are
tea and coffee which are not only sold heavily in the
domestic market but are also exported to a range of
leading overseas markets.. Among the hot beverages
manufactured in India, tea is the most dominant beverage
that is ruling both the domestic and international market
even today.
• Coca cola, Pepsi, and Nestle are the leading beverage
brands that have been ruling the Indian beverage market
since past few decades. Among all the beverages, tea and
coffee are manufactured as well as exported
heavily in the international markets succumbing
to the individual demands around the world. -

12. FDI
 100% FDI is permitted in the automatic route for most
food products except for items reserved for micro and
small enterprises.
 100% FDI is permitted for alcoholic beverages, with the
requirement of an industrial license.
 For pickles, mustard oil, groundnut oil and bread –
items reserved for the micro small and medium sector,
24% foreign direct investment is allowed under the
automatic route, with the requirement of prior
approval from the Foreign Investment Promotion
Board for FDI amounting to more than 24%.

13. FOREIGN INVESTORS -
 Kraft (USA)
 Mars (USA)
 Nestle (Switzerland)
 McCain (Canada)
 Danone (France)
 Ferrero (Italy)
 Del Monte (USA)
 Kagome (Japan)
 Kelloggs (USA)
 Pepsi (USA)
 Unilever (Anglo Dutch)
 Perfetti (Italy)
 Cargill (USA)
 Coca Cola (USA)
 Hershey (USA)

14. CHALLENGES FACED BY THE INDIAN INDUSTRY.
 The most crucial challenge today that the Indian food
processing industry is facing is the lack of suitable
infrastructure in the shape of cold chain, packaging
centre’s, value added centre, modernized abattoirs etc.
Improvement in general infrastructure is also a must
requirement for the industry to progress. Some other
important initiatives that are needed are:
 Promotion of appropriate crossbreeds while conserving
indigenous breeds of livestock
 Establishment of livestock marketing system
 Promotion of rural backyard poultry in a cooperative
marketing setup
 Development of cooperative dairy firms
 Enhancing livestock extension services
 Encouraging private veterinary clinic

15. Agencies -
 Ministry of Food Processing Industries
 Food Safety and Standards Authority of India
 Agriculture and Processed Foods Export Development
Authority
 National Insitute for Food Technology and
Entrepreneurship Management
 All India Food Processors Association
 Commodity Boards under the Ministry of Commerce and
the Ministry of Agriculture/Ministry of Food Processing:
coffee, tea, spice, meat and grapes.
 Indian Grape Processing Board

16. REFERENCES-
 MINISTRY OF food processing industry
 www.ibef.org/industry/indian-food-industry.aspx
 articles.economictimes.indiatimes.com/2015-05-
26/news/62672051_1_fb-sector-lakh-crore-
unorganised-sector
 ECONOMIC SURVEY (food an beverage industry)
 Food processing / MAKE IN INDIA

18.  The Scheme of Mega Food Park aims at providing a
mechanism to link agricultural production to the
market by bringing together farmers, processors and
retailers so as to ensure maximizing value addition,
minimizing wastages, increasing farmers’ income and
creating employment opportunities particularly in
rural sector. The Mega Food Park Scheme is based on
“Cluster” approach and envisages a well-defined agri/
horticultural-processing zone containing state-of-the
art processing facilities with support infrastructure
and well-established supply chain.