and Food processing Sector :
While the Indian economy’s growth in the recent years, has been propelled by the growth of the service and manufacturing sectors, agriculture still plays a significant role by contributing 17% of the GDP and providing employment to 60% of the population. With the increasing focus and investments from the large national and international food and retail companies, the sector is bound to grow much faster in the coming years. As this sector has a strong social implication, it has also been accorded a high priority status by the Government, which is facilitating its growth by charting favourable initiatives at different policy levels. The changing consumption dynamics coupled with the growth of modern retail, the processed food industryoffers tremendous opportunities for all stakeholders in the areas of production, processing, marketing,supply chain, infrastructure development, technology up gradation and education.
FOOD INDUSTRY OVERVIEW
The size of the Indian food industry is estimated at about US$ 236 bn. It is growing at about 5% year on year (YoY) and will reach US$ 314 bn by 2015. The processed food segment’s contribution is currently at about 43% i.e. US$ 120 bn, this is expected to grow much faster, and contribute about 50% to the total food market by 2015. The proportion andvalue of each sector in the Indian food processing industry is shown in Exhibit 1.
The processed food industry is highly fragmented and is dominated by the unorganized sector. The organized food processing segment contributes about 30% of the market; however with the entry of large players both domestic and international, the market is expected to growing at 25% per annum and will account for 40% of the market by the next 5 years. At the moment the Indian food market is still dominated by the staples like wheat, rice and pulses followed by fruits & vegetables and dairy products with... [continues]
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