Sponsor by

GUJARAT AGRO INDUSTRIES CORPORATION LIMITED

Status Survey of Fruits and Vegetables Processing

Industry

DECLARATIONI, Ronak Thakkar, student of Center for Management Studies, Dharmsinh Desai University, Nadiad, hereby declare that this project entitle “Market Survey of Fruits and Vegetable Processing Industry, Current Scenario and Future Prospects in the state of Gujarat” for Benefit of this sector in the State. which is undertaken at/sponsor by GUJARAT AGRO INDUSTRIES CORPORATION LIMITED, AHMEDABAD is a result of culmination of my sincere efforts.I declare that this submitted work is done by me and to the best of my knowledge; no such work has been submitted by any other person for the award of degree or any other purpose. I also declare that all the information collected from various secondary sources has been duly referenced.

- Ronak V. Thakkar

7th July, 2011

GAIC Ltd. CMS DDU

About GAIC Ltd.GAIC is the Nodal Agency for Implementation

of Agro Industrial Policy in the State

GAIC is also a Nodal Agency for MOFPI and APEDA for Implementation of the Project and Promoting the Development of Agro Industries in the State

GAIC having strong network of 18 district level centers and 1200 plus agribusiness centers in the state to Empowering the Farmers

GAIC Ltd. CMS DDU

Level of Processing

(Fruits & Vegetables)

USA - 80 %

France - 70 %

Malaysia- 80 %

Level of Processing in India (Fruits & Vegetables)

Organized Unorganized Total 1.3% 0.8% 2.2%

(as per survey by MOFPI in 2006)

Government’s vision to raise it from 2.2% to 5% by 2015 GAIC Ltd.

CMS DDU

Literature Review

Fruits and Vegetables Processing still at a nascent stage

Limitation of this study : Unorganized Sector is totally untouched Strength of this study : Organized sector is almost 80% of entire

State(population) is covered as a sample and many SSIs

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State wise No.s of Fruits and Vegetables Processing Units in India;Sr. No. States/Uts No. Of Units1 Maharashtra 10482 Tamil Nadu 5443 Uttar Pradesh 4854 Kerala 4455 Karnataka 3286 West Bangal 308

7 Gujarat 3058 Andhra Pradesh 2969 Punjab 23010 Delhi 20911 Haryana 16612 Uttarakhand 12913 Himachal Pradesh 11614 Madhya Pradesh 11315 Rajasthan 10616 Jammu & Kashmir 7717 Assam 4618 Bihar 4319 Goa 4220 Jharkhand 2821 Orissa 2022 Manipur 1623 Chandigarh 1024 Meghalaya 1025 Pondicherry 926 Dadra & Nagar Haveli And Daman & Diu 727 Tripura 728 Chhatisgarh 629 Nagaland 630 Sikkim 431 Mizoram 332 Andaman & Nicobar Islands 233 Arunachal Pradesh 234 Lakshadweep 0

India 5166

(Source: Lok Sabha Unstarred Question No. 848, Dated On 09.07.2009)

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Micro Segments of Fruits and Vegetable Processing Industry

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5. Mango Pulp/ Canned F&V

6. Individual Quick Freezing(IQF) F&V/Primary Processing

7. Freeze Dried F&V

8. Pickles/Chutneys/Pastes/Jam Jelly/ketchup/ Tooty Fruity

1. Onion Dehydration – 80% of the

country

2. Potato Chips/French Fries/Potato Flakes/Maize

Starch – McCain, Balaji

3. Fruit Juice/

Squash

4. Gamma Irradiation -

UML

Su

rveye

d

At nascent stage

Research MethodsSecondary research : Data collected from

GAIC, and website of DHG, NHB, MOFPI, APEDA, Loksabha etc

Primary research : Survey Research design : Descriptive Sampling method : Conveyance

Area: Mangoes and Vegetable AEZ: south and central Gujarat

Questionnaire design: Close ended(Multiple choice & Dichotomous) and Open ended(free respond)

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ANALYSIS OF

SURVEY DATA

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

0 10 20 30 40 50 60

Age of Units No.s of Units

Years Old UnitGAIC Ltd.

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Type of Business Concern

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Proprietorship8%

Partnership 36%

Corporation (Pvt. Ltd./Ltd. Com-

pany)56%

No.s of Units Mango Pulp/Canned

F&VIQF F&V/ Primary

ProcessingFreeze Dried Pickles/Chutneys/

Pastes/Fruit Jams/Ketchup/

Jelly/Tutty Fruity

0

2

4

6

8

10

12

14

16

8

2

6

15

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1. Mango Pulp / Canned F&VProduction Capacity (f.g.) No.s of Companies

<2MT/hr 22MT/hr 23MT/hr 14MT/hr 15MT/hr 16MT/hr 1

GAIC Ltd. CMS DDU

GAIC Ltd. CMS DDU

2. Individual Quick Freezing(IQF) F&V Production Capacity

(finished goods) No.s of Companies1000-2000MT/Ann. 3

>3000MT/ann. 2

3. Freeze Dried F&V

Production Capacity (input) No.s of Companies100-500MT/ann 1

1000-2000MT/ann 1

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Long shelf life at ambient temperature

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4. Pickles/Chutneys/Pastes/Jam Jelly/ketchup/ Tooty Fruity

Production Capacity (f.g.) No.s of Companies

<100 MT/ann. 2100-499MT/ann. 4500-999MT/ann. 4

1000-1999MT/ann. 32000-2999MT/ann. 2

Foreign Investment/FDI

No. of units having 4Percentage 16%

GAIC Ltd. CMS DDU

< 100 20%

100-199 28%

200-29916%

300-399 8%

400-499 8%

> 500 20%

Amount Invested in Project (Rs. in Lacs)

Annual Sales/Turnover

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< 200

200-399

400-599

600-799

800-1000

> 1000

7 (28%)

5 (20%)

5 (20%)

3 (12%)

1 (4%)

4 (16%)

Rs.in

Lacs

Raw Material Procurement Process is,District Respondent

Very Easy Easy Difficult Very Difficult

Gandhinagar 1   √      2     √  

Ahmedabad 1   √      2   √      3   √      4   √      5     √  

Kheda 1 √      Anand 1   √    

  2     √    3   √      4   √      5   √    

Vadodara 1   √      2   √      3     √    4   √    

Bharuch 1   √    Surat 1   √    

  2   √      3   √    

Navsari 1   √      2 √      

Valsad 1   √      2   √    

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Workers/Manpower AvailabilityDistrict Respondent Very Easy Easy Difficult Very Difficult

Gandhinagar 1     √    2     √  

Ahmedabad 1       √  2   √      3       √  4     √    5     √  

Kheda 1   √    Anand 1     √  

  2       √  3       √  4   √      5     √  

Vadodara 1   √      2     √    3       √  4     √  

Bharuch 1     √  Surat 1     √  

  2     √    3       √

Navsari 1       √  2     √  

Valsad 1       √  2     √  

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Workers Employment

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No. of workers No. of respondents Percentage1 - 20 7 28%21 - 30 4 16%31 - 40 3 12%41 - 50 4 16%

> 50 7 28%Total 25 100%

but both, Increases in season

One Shift (8hrs.) 16 RespondentsOne Shift (12hrs.) 7 RespondentsThree Shifts(24hrs.) 2 Respondents

Working Hours

Way of utilize E-Commerce

No.s of Respondents Percentage

Website 19 76%Online Sales 9 36%Advertisement 4 16%

Positive respondents 9Percentage 36%

100% Export Oriented Units

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Facebook, Twitter……..

Export Statics of the country

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(source: DGCIS report)

(Qty in Mt., Value in Rs. Lacs)

Communication Channel using for advertisement are

No.s of Respondents Percentage

Newspaper/Magazine 7 28%Pamphlet 3 12%

Television/Radio 3 12%Internet 5 20%

Never40

40%

Rarely 12%Frequently

4%

In Festival 32%

In Off Season12%

Promotional Offers

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No one is spending even 1% of sales turnover on Advertisements

No. of companies Participating 13Percentage 52%

Name & PlaceNo. of units

ParticipatingPercentage out

of totalPercentage out of

participantsKhadya

Khurak,Ahmedabad 4 16% 30%AAHAR,Delhi 4 16% 30%

Foodex,Mumbai 2 8% 15%Food Pro,Chennai 2 8% 15%

Also in, Rotary club, palanpur Anuga, SIACOulf food, DubaiDIC-VCCI-VadodaraKrishi melaKVICExibitorAnd so on in Gujarat, India and Foreign.

Participating in Exhibition/Trade Show,

Various exhibitions like,

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Expenditure on Research & Development,

(Thanks to Mr. Umang Desai, Murohi Food Products, Valsad for the Picture)

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Percentage Expenditure

No. of respondents Percentage

<2% 19 76%

2-4% 4 16%

<6% 1 4%

> 6% 1 4%

Total 25 100%

Technology used

No. of respondents Percentage

Indian 20 80%

Imported    

Both 5 20%

Total 25 100%

Quality Standards following,

HACCP(ISO22000)

GMP

BRC

0 2 4 6 8 10 12 14 16

24%

16%

56%

GAIC Ltd. CMS DDU

Now towards GMP, GHP, GAP, ISO14000………

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Sales Increases (as trust increases)

72%

Can’t say anything now12%

No Impact16%

impacts feel on organized sector after implementation of

Source: fssai.gov.in

Plan for Expansion in near future,

Yes80%

No20%

GAIC Ltd. CMS DDU

SnapshotADF Foods eyes revenue of Rs 500 crore in five years • Mumbai, June 10 (PTI) Export-oriented FMCG firm ADF Foods is eyeing Rs 500 crore revenue in the next five years and

expects 40 per cent of the sales to come from the Indian market, a top company official said.

• "Exports contribute to around 95 per cent of our revenues. But with India emerging as a leading food producer, we want to focus on the domestic market. We are eyeing 40 per cent of revenues coming from the Indian market and the rest 60 per cent from the international market in the next five years," ADF Foods Managing Director Bimal Thakkar told PTI on the sidelines of a Consumer Conference organised by Centrum Capital.

• The Mumbai-based food processing company recently re-entered the domestic market with a range of ready-to-eat, ready-to-cook foods and pickles under the brand name Soul.

• "We will introduce more products under the brand in the next few years to cater to the Indian cuisine. Apart from this, we also want to introduce international cuisine in ready-to-eat formats under the Soul brand," he said.

• The company has earmarked a capex of around Rs 45 crore over the next three years for expanding its presence in India.

• "We will be spending around Rs 25 crore on Marketing and Brand Building and increasing our distribution network. We want to be among the top three leaders in 3-4 years. We are also planning to set up one manufacturing facility in the country and eyeing a revenue of Rs 500 crore in the next five years," Thakkar said.

• The BSE-listed firm already has two factories, one each in Maharashtra and Gujarat, manufacturing products like pickles, pastes, chutneys, ready-to-eat curries, frozen parathas, frozen snacks and frozen vegetables, among others.

• ADF Foods is also developing a contract-farming model, he said, adding, "We have started it in Gujarat for producing mangoes and bhendi (lady''s finger). We see a great demand for such kind of produce mostly in the international market. Since the concept is also becoming popular in India, we plan to develop it further here." Presently, the company has a presence in major countries of North America, Europe, Australia, the Middle East, Africa and Asia and has a strong network of over 175 distributors.

• "We will be adding new products and entering new geographies as a part of our international expansion plans. We are also on the lookout for more acquisitions in key markets such as the USA and Australia," Thakkar said.

• The company recently acquired Elena''s Food Specialties, a US-based company making organic Mexican foods and distributing them across the mainstream market in the USA.

(Source: The Economic Times of dated 10th June 2011)GAIC Ltd.

CMS DDU

0

2

4

6

8

10

12

14

16

60%

20%

40%

12%

Key Challenges Fruit and vegetable Processing Industry Facing

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SWOT Analysis

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• Friendly Gov. Policy (Licensing, Subsidies…..)

• Socio–economic factor has created Huge Domestic Market

• Raw Material (Kesar mangoes- best in the world)

Surplus Productions

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Strength

Weakness

• 60% of respondents feels

skilled manpower availability as a key challenge

• Very Few Players and of small size

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Opportunity• 80% of respondents

having expansion plan in near future they needs huge revenue/funding in upcoming years. FDI is one of the good option

• To acquire domestic market industry has to put sufficient efforts in R&D and huge investment in brand building and marketing activities

• Quality standards like GMP……• Easy to Enter

GAIC Ltd.

CMS DDU

Threat

• Decreasing Employment- Lack of workers

• MNC’s (Capital Foods, Himalaya International…….and more will coming soon)

- Large size plants - Imported automated Technology

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Shri. Sudhirbhai Dave, AGM(M&P), GAIC Ltd.

Shri. Subodhbhai Shah, Manager(Marketing), GAIC Ltd.

Shri. Vijaybhai Shah , Petals / AIFPA

Dr. R. K. Jain, ADIT / AFST(I)

Dr. N. K. Patel, CMS DDU

P r o f . (Ms . ) Ma n s i b e n R a t h o d, CMS DDU

Shri. Kamleshbhai Chapaneri, Vadilal Industries Ltd.

Shri. Ashokbhai Patel, Patidar Agro and Food Products

Shri. Vijaybhai Chawla, Brothers Foods Pvt. Ltd.

Shri. Yogendra Jadav, Nilkanth Agro Industries

Shri. Kishanbhai Tekchandani, Swami Shanti Prakash Agro

Shri. Mukeshbhai Chawla, J. J. Food Industries

Shri. Santoshbhai Verma, Anmol Food Product

Shri. Samirbhai Koradia, Gujarat Food Industries

Shri. Ashutoshbhai Patel, ADF Foods Ltd.

Shri. Kiritbhai Patel, Anand Food And Dairy Products

Shri. Surendrabhai Patel, Shreeji Vegetable Suppliers

Shri. Abidbhai Deraiya, Relish Agro Food (India) Pvt. Ltd.

Shri. Jayantbhai Patel, Ekta Fresh Foods Pvt. Ltd.

Shri. Dhimantbhai Shah, Pathik Foods

Shri. Vivekbhai Tambe, Saraf Foods Ltd.

Shri. Chandreshbhai Shah, Madhav Agro Food Pvt. Ltd.

Shri. Vasant Kumar Pillai, M/S.Modern Food Products

Shri. Sandipbhai Shah, Aum Agri Freeze Food

Shri. Nareshbhai Shah, Harshad Mango Products Pvt. Ltd.

Shri. Hemantbhai Kansara, G.A. Foods (India) Pvt. Ltd.

Shri. Ghanshayambhai Lukhi, Tapi Food Products

Shri. Sanjoybhai Datta, Vimal Agro Products Pvt. Ltd.

Shri. Surajbhai Savalia, Patson Foods (India) Pvt. Ltd

Shri. H. D. Parekh, Desai Fruits And Vegetables

Shri. Mukeshbhai Desai, Murohi Food Products

GAIC Ltd. CMS DDU

ConclusionUnleashing the Era of F&V

Processing

Thank you for your kind attention

Jay Jay Garvi Gujarat

Reference Websitesvadilalgroup.com naturealfood.com picklesfood.com adf-foods.com anandfood.com relishagrofood.com amarcoldstorage.com saraffoods.com aumfresh.com hampaindia.com tapifood.com vimalagro.com patsonfoods.com desaifv.com murohifood.com

gujagro.org agri.gujarat.gov.in agricoop.nic.in gujaratindia.com ic.gujarat.gov.in gidc.gov.in mofpi.nic.in apeda.com agriexchange.apeda.gov.in nhb.gov.in parliamentofindia.nic.in fssai.gov.in articles.economictimes.in diatimes.com Wikipedia.org

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REQUEST FOR FEEDBACKEsteemed & Most Respected Reader,

At the very outset,I would like to take this opportunity to request to your good self to supply your critical comments & suggestions about the report prepared, on my e-mail 06ft340@adit.ac.in for further improvements in the interest of research Hoping an appropriate consideration

Thanking you profoundly

Best regards,Ronak Thakkar

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