FOREIGN TRADE . EXPORTS . IMPORTS

www.thedollarbusiness.com Vol.3 Issue 05 May 2016 100 $2

IS INDIA SQUEEZING ENOUGH JUICE OUT OF THE FOOD PROCESSING INDUSTRY?

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Vol.3 Issue 05 May 2016

100 $2 RNI: APENG/2014/54643

India's food processing industry has forever been plagued by problems aplenty. And the concerns have prevented it from fulfiling its golden promises.

ASHOK GAJAPATHI RAJUUnion Minister for Civil Aviation, GoI

DR. GURUPRASAD MOHAPATRA Joint Secretary, SEZ & EOU,

Ministry of Commerce & Industry, GoIPIRUZ KHAMBATTA

Chairman & MD, Rasna International, and Chairman, CII National Committee

on Food ProcessingAMANDA HODGES

Senior Trade & Investment Commissioner, Australian Trade Commission, India

PANKAJ DUBEYCountry Head & MD, Polaris India

ASHOK G. RAJANIChairman, Apparel Export Promotion Council

...AND MORE!

EXCLUSIVE INSIDE

Hard drivesNot hard to drive in profits!High demand calls for high imports

SaltNot so common an export idea

It's all about achieving economies of scale

Export Oriented Units A story of rise and fall

Does eternal rest await them?

8 THE DOLLAR BUSINESS II MAY 2016

Volume: 3 Issue: 05 May 2016

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INDIA’S FOOD PROCESSING INDUSTRY HAS FOREVER BEEN PLAGUED BY PROBLEMS THAT HAVE ARRESTED ITS GROWTH. LOGISTICS AND INFRASTRUCTURAL BOTTLENECKS, INADEQUATE INVESTMENTS, UNDESIRED POLICY CHANGES, LACK OF TALENT, AND MANY OTHER SUCH CONCERNS HAVE ERODED ITS POTENTIAL AND GLOW. HOW MUCH LONGER BEFORE CHANGE FOR THE BETTER OCCURS?

COVER STORY 28

FOOD PROCESSINGIS INDIA,MAKING, BAKINGAND SERVINGIT RIGHT?

President (VMPL) : Steven Philip Warner& Editor-in-Chief

EDITORIAL & RESEARCHEditor : Manish K. PandeyExecutive Editor : Indranil DasAssociate Editor (Print) : Andres M. MolierAssociate Editor (Online) : Sheela MamidennaSr. Assistant Editors (Print) : Sisir Kumar Pradhan, Shivani (Vig) KapoorAssistant Editors (Print) : Neha Dewan, Ahmad Shariq Khan, Sairaj IyerAssistant Editors (Online) : N. Sharath Chowdary, Aamir Hussain KakiPrincipal Correspondents : Vanita Peter D'souza, Deepak KumarCorrespondents : Aadhira Anandh M., Jasleen Kaur, Manisha Choudhari, Pooja Jain

EDITORIAL CONSULTING BOARDFounder & Editor : Anil GoyalPublisher : Avnish GoyalChief Consulting Editor : Dr. A. K. SenguptaEditorial Advisors : Dr. N.K. Goyal (CMAI), Atul Kumar Saxena (IIA)

ADVERTISEMENT SALES & MARKETINGVice-President : Aninda MondalAssociate Vice-President : Dharmendra JaiswalManager : Kamlesh Tripathi, Santosh Pandey, Bhaskar Joshi, Pramveer Singh Executive : Maleeha Mushtaq

International Representatives Seoul (South Korea) : Justin Yoon (+82-2-6241-4256)London (UK) : S. Puri (+44 207 376 1996)

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HR, FINANCE & LOGISTICSSr. Manager – HR : Rasanpreet Kaur Manager – Accounts : Parchuri JhansiAsstt. Manager : Helen Mary Sr. Executives : Swati Sharma, Ganesh AlagondaAssociate : Inderkant Padampalle

PRINTERKala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Road, Musheerabad, Hyderabad, Telangana 500020, IN

PUBLISHED AT5-2-198/4, Distillery Road, Ranigunj, Secunderabad, Telangana 500003, IN

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© Copyright 2016No part of this magazine may be reproduced in whole or in part without an ex-pressed permission of the publisher. The information on this magazine is for information purpose only. Manish K. Pandey, Editor, The Dollar Business, is re-sponsible for the selection of news and content under PRB Act. Vimbri Media Pvt. Ltd. assumes no liability or responsibility for any inaccurate, delayed or incomplete information, or for any actions taken in reliance thereon. The information contained about each individual, event or organisation has been provided by such individual, event organisers or organisation without verification by us. All disputes are subject to exclusive jurisdiction of competent courts and forums in Hyderabad, Telangana.Printed and published by Avnish Goyal for Vimbri Media Pvt. Ltd. Published at 5-2-198/4, Distillery Road, Ranigunj, Secunderabad - 500 003, Telangana.

Printed at: Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad - 500 020, Telangana.

MAY 2016 II THE DOLLAR BUSINESS 9

INBOX LETTERS TO THE EDITORReaders’ feedback, criticism, and appreciation that hit our mailboxes in April 2016

MONOLOGUE PEOPLE SPEAKFrom Narendra Modi on GST Bill to Vladimir Putin on Russia’s trade with Finland, and more...

GLOBAL TRADE The possible impact of BREXIT on the UK economy; Sweden’s concerns over Maine lobsters and much more..

INDIA TRADE From India’s rising trade deficit to dairy exports to Russia to preferen-tial trade agreement between with Chile and a lot more.

SPOTLIGHTAUSTRALIAThe 12th largest economy is still dependent on mining & agriculture

IMPORTO’NOMICSMOBILITY DEVICE COVERSWhy importing mobility device covers from China makes sense

SECRET INGREDIENTSALTIndia is one of the largest exporters of salt, but logistics remain a hurdle

BESTSELLERHARD DISC DRIVESThe ever-increasing need for digital storage is fuelling its imports

PRIME FOCUSEOUs

The declining performance of EOUs

has been a cause for concern. Is there a way to reverse the trend?

DOCKYARDCOCHIN AIRPORTCIAL has been the poster boy of PPP projects in India, and its expansion plans are noteworthy

NEXTGEN NEWSMAKERKASHMIR BOXFounder & CEO shares his plan of taking the ‘Kashmir’ brand to the world via e-commerce

TDB FORUMQuestions about foreign trade that hit our mail box in April 2016

DATEBOOKSome trade shows you shouldn’t miss out in India and abroad in May and June 2016

ASHOK G. RAJANIChairman, AEPC, discusses issues that are hurting the Indian apparel industry

AMANDA HODGESSenior Trade Commissioner, Australian Trade Commission, on upcoming FTA and more

PANKAJ DUBEYCountry Head & Managing Director, Polaris India on how he plans to tap the nascent ATV market in India

ASHOK GAJAPATHI RAJU UNION MINISTER FOR CIVIL AVIATIONTalks about the 5/20 rule and his vision for the civil aviation sector

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28 THE DOLLAR BUSINESS II MAY 2016 MAY 2016 II THE DOLLAR BUSINESS 29

IS INDIAMAKING, BAKING, PACKING, TRANSPORTING AND SERVING IT RIGHT?Despite being one of the largest producers of agricultural products in the world, India's food processing industry remains for all practical purposes, an infant! Logistics and storage issues have led to enormous wastages over the years in an industry worth $67 billion, and which provides direct employment to some 13 million people. But there's hope. The Centre's recent nod to allow 100% FDI in made in India processed food retail and efforts to encourage investments in infrastructure through lower import duties could lead to better days ahead for the industry. Or are we just being unjustifiably optimistic? The Dollar Business analyses.BY THE DOLLAR BUSINESS INTELLIGENCE UNIT

COVER STORY FOOD PROCESSING