madhyapradesh foodprocessingindustry-150706102716-lva1-app6891

Make In India - Madhya Pradesh: An Investment Destination for Food Processing

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About Us

• Started in 2002, with the aim of providing multiple services to companies wishing to engage in any business expansion

• Provide actionable insights to companies across a range of industries such as Food, and Healthcare

• Well equipped offices in India and Dubai, also present in 20 countries and 5 cities in India through channel partners

• Dedicated team of over 35 employees and 15 freelancers, with rich industry experience and domain expertise

Services

Strategic Consulting

• In-Depth Market Assessment

• Market Entry Strategies

• Concept & Product Testing

• Existing Business Optimization

• Strategic Advisory

India : Food Processing Industry

2012 2015e 2020f

6,637

11,640

16,500

India - Food Processing Industry (INR Bil-lion)

CAGR - 12%

Source: ICAR, RNCOSNote: e = ICAR Estimates, f = RNCOS ForecastExchange Rates: 2012: US$ 1 = INR 54.85; 2015 & 2020: US$ 1 = INR 60.00

• India is the world’s second largest food producer

• Food production in India is likely to double in the next 10 years

• Share of unorganized sector will decline to 70% by 2020

• Organized sector occupies 25% of the market, and is expected to grow with a CAGR of 16% during 2014-2020

Dairy Products33%

Grains & Pulses10%

Convenience Foods10%

Fruits & Vegetables5%

Others42%

Food Processing Market Segmentation (2014)

Source: RNCOSNote: Others include alcoholic beverages, meat and poultry

Industry Drivers

Abundant resources to support the flourishing food processing industry

Increasing interest for ready-to-eat food products among young generation and working class

Consumers ready to experiment with unique processed food offerings.

Government focus - setting-up food parks, mega food parks, cold chains, etc. for food processing industry

• Food Processing Industry (FPI) forms 32%1 of Madhya Pradesh Industrial Output

• The Gross State Domestic Product (GSDP) from agriculture & allied activities has registered a growth of over 18%2 during FY2012 to FY2014

• Majority of food processing is at primary level i.e. wheat, grain and rice milling

• State has about 6253 Micro and small scale units operating in food processing and beverages

• State has Seven Food Parks, and One Mega Food Park to support food processing industry

• Offering various incentives and subsidies under Agro & Food Processing Policy to boost FPI

• Major business groups have committed to invest in State’s FPI during Global Investors Summit (GIS) 2014

• Future Group, ITC and Adani Group are some of the big names

Madhya Pradesh : Food Processing Industry - Salient Features

1Government of India, Annual Survey of Industries, Data Tables, Department of Horticulture and Food Processing2Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE)3MoFPI

• Madhya Pradesh is the 2nd largest state by area

• 11 agro-climatic divisions - major precursor for the growth and development of agriculture

• Fourth largest producer of Agri-produce

• More than 70% of the population involved in agricultural activities

• 15.7 Million hectares of land under cultivation

Madhya Pradesh : Agriculture Strengths

FY2011 FY2012 FY2013 FY2014

30.01

43.36

49.7646.55

Agriculture Production (Million Metric Tonnes)

CAGR - 16%

Grains & Cereals

64%

Fruits12%

Veg-etables

23%

Spices1%

Agriculture Production by Type (FY2014)

Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation, National Horticulture Board

Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation, National Horticulture Board

Grains & Cereals Fruits Vegetables Spices

3rd

8th

5th 5th

All India Rank in Production (FY2014)

Source: Various Industry Sources

• Major Wheat Producing Districts: Hoshangabad, Chhindwara, Sehore, Harda, Raisen and Vidisha

• Moong, Urad, Masoor, Gram, Arhar and Kabuli Chana are major Pulses

• Major Fruit Producing Districts: Indore, Ujjain and Jabalpur

• Major Vegetable Producing Districts: Ujjain, Indore, Jabalpur and Sagar

Madhya Pradesh : Agriculture Strengths

Wheat47%

Soybean18%

Pulses17%

Others18%

Grains & Cereals Production by Type (%), FY2014

Banana30%

Orange16%Guava

15%

Papaya8%

Mango7%

Aonla/Gooseberry6%

Others18%

Fruits Production by Type (%), FY2014

Onion22%

Potato18%

Tomato15%

Brinjal8%

Cauli-flower

5%

Cabbage4%

Others28%

Vegetables Production by Type (%), FY2014

Source: Directorate of Economics and Statistics, Department of Agriculture and CooperationNote: Others include Rice and Maize collectively

Source: National Horticulture Board Source: National Horticulture Board

Nimrani Food Park

• Location: Nimrani, District Khargone

• Nearest Major City: Indore

• Total Area: 27.12 hectares

• Existing Units (Majorly): Grain Milling, Rice Milling and Bakery

• Prospective Food Processing Units: Value added processing of Garlic, Onion, Tomato, Soybean, Wheat, Orange and Banana

Madhya Pradesh : Food Parks

Jaggakhedi Food Park

• Location: Jaggakhedi, District Mandsaur

• Nearest Major City: Indore


• Existing Units (Majorly): Spices Milling

• Prospective Food Processing Units: Value added processing of Garlic, Tomato, Orange, Onion and Guava

Borgaon Food Park

• Location: Industrial Area Borgaon, District Chhindwara

• Nearest Major City: Nagpur (55 km)


• Existing Units (Majorly): Rice Milling, Spices Milling, Baby Food, Papad, Pickles and Ketchup

• Prospective Food Processing Units: Value added processing of Soybean, Wheat, Maize, Rice, Pulses and Mango


Maneri Food Park

• Location: Maneri, District Mandla

• Nearest Major City: Jabalpur (35 km)


• Existing Units (Majorly): Amla, Papad, Badi and Tomato Pulp

• Prospective Food Processing Units: Value added processing of Rice, Wheat, Soybean, Tomato, Pulses, Maize and Mango

Malanpur Food Park

• Location: Gwalior - Bhind - Etawah NH-92

• Nearest Major City: Gwalior (20 km)

• Total Area: 62 hectares

• Existing Units (Majorly): Dairy Products and Grains Milling

• Prospective Food Processing Units: Value added processing of Potato, Wheat, Pea, Garlic, Onion, and Guava


Babai-Pipariya Food Park

• Location: District Hoshangabad

• Nearest Major City: Bhopal

• Total Area: 50 hectares

• Existing Units (Majorly): Rice Milling, Pulse Milling, and Bakery

• Prospective Food Processing Units: Value added processing of Wheat, Soybean, Pulses, Orange, and Mango

Fruit Juices

• Substantial growth in packaged fruit-based beverages market in India

• Total fruit juice market in 2014 was INR 70 Billion, Organized sector had 20% market share

• Mango and orange juices are the most preferred variants

• Major Drivers: Growing awareness, Urbanization, Working population

Madhya Pradesh : Food Processing Opportunities

FY2012 FY2013 FY2014

0.65

0.840.89

0.18

0.38 0.38

Orange and Mango Production (Million Metric Tonnes)

Orange

MangoCAGR - 45%

Madhya Pradesh Status

• 26% and 2% share in India’s total orange and mango production respectively

• Very less processing (0.2% and 5.8% of oranges and mangoes production)

• Major Orange Producing Districts: Shajapur, Mandsour, Ratlam, Ujjain, Hoshangabad

• Major Mango Producing Districts: Bhopal, Umaria, Jhabua, Alirajpur, Seoni

• Food Parks around Orange and Mango Production: Jaggakhedi, Babai-Pipariya, Nimrani, Borgaon, Maneri

• Opportunities also exits for Banana Chips and Guava Juices

Source: National Horticulture Board

CAGR - 17%

Tomato Ketchup/Sauce

• India's tomato ketchup and sauce market is close to INR 10 Billion; growing at 20% YoY

• High demand both in institutional segment (Hotels, Restaurants, Fast Food Chains etc.) and Retail segment

• Major Drivers: Range of variants & packaging, Working women, Changing eating habits and Increasing disposable income


FY2011 FY2012 FY2013 FY2014

0.29

1.35

1.851.94

Tomato Production (Million Metric Tonnes)


• 3rd highest crop produced in Madhya Pradesh

• Tremendous growth in production

• Low processing capacity in the State

• Major Tomato Producing Districts: Ratlam, Jabalpur, Bhind, Barwani, Dhar, Sagar, Chhind-wara, and Khandwa

• Food Parks around Tomato Production: Nimrani, Jaggakhedi and Maneri

Source: National Horticulture Board

CAGR - 88%

Soybean Oil

• Huge demand of Soybean oil in India

• Imports meet 60% of the demand

• Soybean oil import was 2.3 Million Metric Tonnes in FY2014, CAGR - 44% FY2012 to FY2014

• Major Drivers: Better than traditional vegetable oils (Rapeseed, Peanut, Cottonseed etc), High nutritional value (omega-3 fatty acids and polyunsaturated fats)


FY2011 FY2012 FY2013 FY2014*

6.27 6.50

7.80

5.37

Soybean Production (Million Metric Tonnes)


• Largest producer of soybean in the country (45% share in all India soybean production)

• Production declined due to huge crop loss in rains

• Major Soybean Producing Districts: Ujjain, Dewas, Shajapur, Sehore, Mandsaur, Dhar, Chhi-ndwara, Vidisha, Indore, and Harda

• Food Parks around Soybean Production: Nimrani, Borgaon, Maneri and Babai-Pipariya

• Opportunities also exists for other soy based products like Sauce, Margarine, Cheese, and Milk

Source: Directorate of Economics and Statistics, Department of Agriculture and CooperationNote: *= Fourth Advance Estimates

Value Added Dairy Products (VADP)

• High growth in various dairy products like Cheese, Packaged Milk, Butter, Non Dairy Creamer, Instant Milk Powder, Condensed Milk and Flavored Buttermilk

• Exports of milk and dairy products presents a large opportunity (Exports CAGR – 103% during FY2010-2014)

• Higher operating margins in value-added products than liquid milk business (about 2x )


FY2010 FY2011 FY2012 FY2013

7.17 7.518.15

8.84

Milk Production (Million Metric Tonnes)Madhya Pradesh Status

• Madhya Pradesh is the 6th largest producer of Milk

• Very negligible milk processing - 1.8% (As per NSSO)

• Major Milk Producing Districts: Morena, Ujjain, Mandsaur, Jabalpur and Indore (23.5% of States Milk Production)

• Food Parks around Milk Production: Malanpur, Jaggakhedi, Maneri, and Nimrani

Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI

CAGR - 7%

RTE/RTC

• Indian organized RTE/RTC (Noodles, Pasta, Upma, Snacks etc) market was estimated to be INR 53 Billion in FY2014

• Expected growth rate - around 22% CAGR during 2014-2020

• Wheat based products are more in demand

• Major Drivers: Changing lifestyle, Increasing adaptability (among tier-I and tier-II consumers), Modern retail chains , Marketing & promotion media


FY2011 FY2012 FY2013 FY2014*

9.22

14.3713.13

13.93

Wheat Production (Million Metric Tonnes)Madhya Pradesh Status

• Madhya Pradesh is the 3rd largest producer of Grains

• Processing is majorly limited to primary grains milling

• Major Wheat Producing Districts: Hoshangabad, Chhindwara, Sehore, and Harda

• Food Parks around Wheat Production: All food parks

Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation

CAGR - 15%

Madhya Pradesh : Capturing the Road Ahead

Creation of Food Testing Facilities

Encourage R&D for Product Development

Creation of Robust Cold Chain/Supply Chain

Network

Easy Credit Availability to MSME

Promoting Food Processing in Food Parks

Special Schemes for New Entrepreneurs

Need for Center of Excellence

Advanced & Cost Effective Process Technology

SHUSHMUL MAHESHWARICEO

RNCOSE mail: [email protected]

Website: www.rncos.comPhone: +91 120 4224700 /01 / 02/

03Address: B 129, Sector 6,

Noida, Uttar PradeshIndia - 201301

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