Food Processing

Industry Overview

Food processing industry in India is a sunrise sector that has gained prominence in the recent years. Availability of raw materials, changing lifestyles and appropriate fiscal policies has given a considerable push to the industry’s growth. This sector serves as a vital link between the agriculture and industrial segments of the economy. It is projected to be a futuristic industry and it is anticipated that, over the years, it will emerge as a leading player in the global markets.

The Gross Domestic Product (GDP) at 2004-05 prices in India has gone up to Rs. 52,43,582 Crore in 2011-12 from Rs. 35,64,364 Crore in 2006-07, with Compound Annual Growth Rate (CAGR) of 8.0%. Contribution of Food processing industry  sector has increased to Rs. 78,094 Crore in 2011-12 from Rs. 52,161 Crore in 2006-07 with CAGR of 8.4%. CAGR for total manufacturing and agriculture sector during the same period has been growing at 7.6% and 3.8% respectively

Investment in Food Processing

Foreign Direct Investment (FDI) is permissible for all the processed food products up to 100 per cent on automatic route except for items reserved for Micro and Small Enterprises (MSEs). For manufacture of items reserved for MSEs, FDI is permissible under automatic route up to 24 per cent. 

Employment in Food Processing Sector

Persons Employed under the registered food processing industries have been increasing steadily over the years registering a CAGR of 3.6 % over a period of five years ending 2010-11. However, there has been a fall employment in unregistered sector of FPI. As per NSSO 67th Round Data (July, 2010- June, 2011), in the unorganized Food Processing Sector 47, 92,561 persons were employed during the year 2010-11

Exports of Food Processing related items

Detailed statistics on India’s foreign trade in merchandise is published by DGCI&S. All agricultural produce when exported undergo an element of processing. Hence all edible agricultural commodities exported are included in the Export data. The share of FP export in total exports from India is 12.0 per cent. The value of exports in the sector has been showing an increasing trend with Average Annual Growth Rate (AAGR) of 20.4 per cent for five years ending 2012-13.

Services Offered

1. Feasibility and Project Reports  on - Potato Waffers,Mineral / Spring Water Plant,Canned food,Ready to Eat food (Retort Packing), Macroni manufacturing etc

2. Cold Chain (Turnkey basis) -  Banana Ripening Chambers,  Controlled and Modified Atmospheric Cold Storages,  Cold Storages

3. Market Research & Studies- Market & Technoi  Feasibility Studies, Market Intelligence,  Market Research, Market Entry Strategies.

4. Strategic Tie ups

    a) Strategic tie ups for companies planning to enter in Agribusiness sector in India

    b) Marketing tie ups inFood Processing for sales  in India - Indian and Foreign companies

    c) Technology sourcing and licensing

     d) Sourcing linkages and tie ups for agri commodities, Organics  etc

    e) Strategic tie ups for creating backward linkages for food processing & retail industry

5. Sourcing  & Supply Chain - Organic products sourcing for retail / Kirana

Establishing supply chain for Organic products, Cost effective (Least Landed Cost basis)  backward linkages for agri products and Fruits & vegetables for Food processing industry, Sourcing of Agri products / commodities and Animal stock feed

6. Market Linkages

    a) Establishment of Distribution network  for sales in – bulk and retail 

    b) Market linkages for Organic products

    c) Establish sales linkages for Food products – Indian as well as Foreign products