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1FOOD AND BEVERAGE SECTOR IN INDIA

PREPARED BY:-JATIN VOHRA

HIMANI GANDHIBEYAAS BHATTACHARJEE

NIRBHAY SINGH

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2OVERVIEW The Indian food and beverage sector, which is

currently growing at 23 to 24 per cent annually, is likely to touch Rs 3.80 lakh crore by 2017

The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. It is projected to grow at the rate of 104 per cent, touching US$ 482 billion by 2020.

Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a CAGR of 20 per cent. It is expected to cross US$ 2.8 billion by 2015.

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3 The Indian food processing

industry accounts for 32 per cent of the country’s total food market, 14 per cent of manufacturing GDP, 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a CAGR of 20 per cent. It is expected to cross US$ 2.8 billion by 2015

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4 It ranks fifth in poultry production. It is one of the largest beverage markets

worldwide (by volume) for alcoholic beverages and soft drinks.

It is the number one market for milk and dairy products and is still growing.

It is already a leading exporter for several food products because of its rich resources.

Its domestic food market will reach 258 billion USD in 2015

It is the second largest producer of agricultural commodities worldwide.

It is the number two producer of fruits and vegetables

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5BAKERY SECTOR IN INDIA The bakery industry, production of which has been increasing

steadily in the country, is the 2nd largest among the processed food industries in India.

Britannia Industries Ltd maintained its leading position in baked goods with 10% value share. It performed well with 20% value share in packaged/industrial bread and 21% value share in packaged/industrial cakes in 2015.

Baked goods is expected to grow by a value CAGR of 2% at constant 2015 prices during the forecast period.

In 2015, biscuits and snack bars overtook chocolate confectionery to be the second biggest snack category globally, behind sweet and savoury snacks. With a 7% value CAGR over 2010-2015, the category was also the fastest growing snack category, and will continue to grow strongly over 2015-2020.

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7BRITANNIA INDUSTRIES Britannia eyes Rs.20,000cr. turnover in

the next 5-6 years. Capital investment of between Rs 150

crore and Rs 200 crore over the next two years,

The Wadia Group-controlled company will enhance in-house production share to 60% of the total production in the next three to four years from the current 46%. The company is also setting up new manufacturing facilities in Tamil Nadu.

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8 "Investments would mostly be into expansion of capacities, product innovation and the setting up an innovation centre,

The company is in the process of setting up two new units in Tamil Nadu, 

Featuring dedicated production lines for plain biscuits, creams and cookies, the four new units – located in Bihar, Odisha, Gujarat, and Andhra Pradesh – have ensured improved production planning and economies of scale.

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9DAIRY SECTOR IN INDIA

Largest producer in the world

Share in India’s GDP

3.6% (13.7 % agriculture)

Growth rate of milk production: 3.5%

Consumer demand rate: 5%

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Projected demand for milk: about 200 million tonnes by 2021-22

Milk production is increasing by 3 million tonnes annually Must henceforth increase by 6 million tonnes annually

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11DAIRY CONSUMPTION

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SWOT Analysis of Indian Dairy Industry

 Strength

Largest milk producer in the world. A huge base of around 11 million

farmers. Traditional emphasis on consumption.

 Weakness

Poor feeding practices. Poor access to institutional

credit. Lack of cold storage facilities. 

Opportunities

Increasing preference for branded dairy products.

Growing focus on health and nutrients in urban market.

 Threat Nearly 80 per cent of the

Indian dairy industry is unorganized.

Removal of import duty has led to the threat of dumping.

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KEY PLAYERS IN THE DAIRY INDUSTRY

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14 Type Cooperative

Industry Dairy Founded 1974 Headquarters Delhi, India Revenue US$1.0billion

Future plans: Planning to expand their operations in

Western and Eastern/North

Eastern India

MOTHER DAIRY

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16Amul

Type Cooperative Industry Dairy/FMCG Founded 1946 Headquarters Anand, Gujrat,India Revenue US$3.4billion(2014-15)

Future plans: Planning to invest Rs 5000

Crore To set up 10 Plants

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17MEGA FOOD PARK

Mega Food Park Scheme is the flagship program of the Ministry of Food Processing Industries, Government of India. Mega Food Parks Scheme (MFPS) was launched in 2008 whereby, the Government provides Financial Assistance up to Rs. 50 Crore to set up modern infrastructure facilities for food processing called Mega Food Parks .

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18 Each Mega Food Park will attract investment of

INR 100 crore in common facilities and additional investment of INR 250 crore 

- Expected annual turnover of the park is around INR 500 crore and this is projected to benefit 6000 farmers in a direct way and 25,000 to 30,000 farmers in an indirect manner 

- Of the 42 mega food parks set up in the nation, around 23 have been given final approvalAll the 42 mega food parks approved by the government will become operational by 2019, which will yield a potential investment of about Rs 14,000 crore.

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19NORTH EAST MEGA

FOOD PARK The Central Processing Centre (CPC) of the

Mega Food Park will be developed on a continuous stretch of 58.41 acres of land located at Nathkuchi Village near the Tihu town ship of Nalbari District in Assam

The primary processing centers spread out across the region also offer great investment opportunities for:-

Setting up and running primary-processing / processing units

Setting up and running logistics and storage facilities

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21POULTRY IN INDIA

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22CURRENT

SCENARIO India is the fifth largest producer of eggs and ninth largest producer of poultry meat in the world

Poultry industry in India has contributed approximately US $229 million, to the Gross National Product (GNP).

The total egg consumption is estimated to increase from 34 billion in 2000 and to 106 billion in 2020, while poultry meat consumption is predicted to increase from 687 million kilograms to 1,674 million kilograms

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23KEY PLAYERS

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Established in 1971 “The Father of the Indian Poultry

Industry” Venky’s is the first national brand

in the processed chicken segment The VH Group is the largest

exporter of poultry products from India

Recent Ventures - Venky's Xprs "Quick Service Takeaway Chain:

Tasty fast-food Chicken.

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Godrej Agrovet set up its integrated poultry business in 1999.

Their Poultry Business best known for the Real Good Chicken & Yummiez.

Joint Venture with Tyson Foods in 2008

Diversified Agro business company

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Promoted by Alchemist Foods Ltd.

Republic of Chicken is amongst India’s leading broiler integrators.

Offers a wide array of frozen raw chicken, convenient easy to cook & quick to serve products

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28Processed Chicken Players

Suguna Poultry Farm Ltd Shanthi Poultry Farm Ltd V K S Farms Pvt. Ltd Venky’s India Ltd Real Good Chicken(Godrej Tyson) S K M Eggs

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THANK YOU!