2. 







3. 2nd largest arable land
in the world
• India holds 2nd largest arable land in the world. With 20 agri-climatic regions, all 15 major
climates in the world exist in India. The country also possesses 46 of the 60 soil types in
the world
Largest producer of
pulses, milk, tea etc.
• India is the largest producer of pulses, milk, tea, cashew and mangoes, buffalo meat; and
the second largest producer of tea, wheat, sugarcane and rice
Largest livestock
population
• Globally, India has the largest livestock population of 470 million, which includes 205
million cattle and 90 million buffaloes
Rising consumption
expenditure
• Consumption expenditure is likely to reach USD3.6 trillion by 2020, up from an estimated
USD1.0 trillion in 2010.
Source: World Travel and Tourism Council, Aranca Research
Favourable location for
exports
• Strategic geographic and proximity to food importing nations, makes India favourable for
export of processed foods

4. • The engineering sector is delicensed;
100 per cent FDI is allowed in the
sector
• Due to policy support, there was
cumulative FDI of USD14.0 billion into
the sector over April 2000 – February
2012, making up 8.6 per cent of total
FDI into the country in that period
Growing demand
Notes: 2020E – Estimate for 2020; Estimates are from Flavours of Incredible India (Ernst & Young, 2009)
FDI – Foreign Direct Investment
Strong demand growth
• Demand growth for processed food
has been rising with growing
disposable income, urbanisation, a
young population and nuclear
families
• Household consumption is set to
double by 2020
• Changing lifestyle and increasing
spend on health and nutritional
foods
Food processing hub
• India benefits from a large
agriculture sector, abundant
livestock, and cost competitiveness
• Investment opportunities will arise
in agriculture, food infrastructure,
and contract farming
• Diverse agro-climatic conditions
making it suitable for practicing
different crops
Policy support
• Sops to private sector participation;
100 per cent FDI under automatic
route
• Agri Export Zones have been set up;
under the government’s Vision 2015
plan, mega food parks to be
established
• Approval of National Mission on Food
Processing
Increasing investments
• Government expects USD21.9
billion of investments in food
processing infrastructure by 2015
• Investments, including FDI, will rise
with strengthening demand and
supply fundamentals
• Launch of Infrastructure
Development scheme to increase
investments in food processing
infrastructure
2009
Domestic
food
spending:
USD181
billion
2020E
Domestic
food
spending:
USD318
billion
Advantage
India

5. Source: Indiabusiness.nic.in, Ministry of Agriculture, APEDA,
Meat & Poultry Processing Board, FAOSTAT
Note: FY – Indian Financial Year (April – March)
MT - Million Tonnes, * - Data mentioned is for FY12
Food
processing
Fruits and vegetables
Milk and milk products
Meat and poultry*
Marine products
Grain processing
Consumer food
India is the world’s second largest producer of fruits and
vegetables
With 127.3 MT in FY12, India is the largest producer of milk in the
world
India is the largest producer of buffalo meat (1.5 MT*) and the
second largest producer of goat meat (0.6 MT*)
With 8.9 MT production in FY12, India is the second largest
producer of fish in the world
India produced about 259.3 MT of food grains in FY12
Among the fastest growing segments in India; it includes –
Packaged
food
Aerated soft
drinks
Packaged
drinking
water
Alcoholic
beverages

6. Contribution of food processing industry in
manufacturing (FY12)
Source: Ministry of Food Processing Industries ( MOFPI),
Annual Report MOFPI (2012-13), Aranca Research
The food processing industry is among one of the largest industries in India and ranks 5th in terms of production,
consumption and exports
With an estimated value of USD121 billion in FY12, India’s food processing industry accounts for 32 per cent of the total
food market
Food processing segment and market
share (FY12)
9%
91%
Food Processing
Other
40%
5%
11%
20%
25%
Meat, Fish, Fruits,
Vegetables and Oils
Dairy products
Grain Mill products
Beverages
Other food products

7. Source: Ministry of Food Processing Industries ( MOFPI), Aranca Research.
Note: NCMSL - National Collateral Management Services Limited
Farmers,
cooperatives and
Private
companies
Warehouses,
cold storage and
silos
Retail shops,
malls, cash and
carry
Farmers, Amul,
ITC, Pepsi,
Hindustan
Unilever Lever Ltd
Food Corporation
of India, NCMSL,
Arshiya
International
Kirana shops,
Bharti-Walmart,
Future Retail,
Aditya Birla Retail
Limited
Inputs Production
Procurement
and storage
Processing Retailing
Seeds, Fertilizers
and Farm
equipments
Grading, sorting,
milling and
packing
National Seeds
Corporation
Limited, Cargill
and Advanta India
Ltd
ITC ltd, Cargill,
Adani Enterprises,
Olam International
Key
activities
Major
players

8. GDP (USD billion) and growth of food processing
industry in India
Source: Ministry of Food Processing Industries ( MOFPI),
Annual Report MOFPI (2012-13), Aranca Research
During FY06-11, the food processing industry expanded at
a CAGR of 4.8 per cent; in FY11 alone, the industry grew
7.1 per cent
Food processing is an important segment in terms of
contribution to GDP, and share in the agriculture and
manufacturing sectors
In FY11, India had as many as 35,838 registered food
processing units with total capital investment of
approximately USD52.1 billion
According to MOFPI in FY11, capital investments in India’s
food processing sector have increased a significant 28.6 per
cent over the last year
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
10.0
11.0
12.0
13.0
14.0
FY07 FY08 FY09 FY10 FY11
GDP- Food processing industry Growth - right axis

9. Annual growth of ‘food products and beverages’
from IIP (%)
Notes: ASI – Annual Survey of Industries
IIP – Index of Industrial Production
Although figures for output of food products and beverages
from ASI are not available post FY10, data from the Index of
Industrial Production (IIP) suggest strengthening growth
momentum in ‘food products and beverages’ in FY11-12
Growth for ‘food products and beverages’ shot up to 14.8
per cent in FY12 from 8.9% in FY11; the sector was the
second-fastest growing sub-segment within manufacturing
in FY12 and its growth far outpaced that of the overall
manufacturing sector in the fiscal year
Source: Ministry of Statistics and Programme Implementation
(MOSPI), Aranca Research
-10
-5
0
5
10
15
20
FY06 FY07 FY08 FY09 FY10 FY11 FY12
Annual growth of Food products & beverages as per IIP
Annual growth of overall manufacturing sector as per IIP

10. Unorganised sector has the largest share in the
sector (FY11)
Source: Ministry of Food Processing Industries ( MOFPI),
Annual Report MOFPI (2012-13), Aranca Research
The unorganised sector accounts for 42 per cent of India’s
food processing industry
The sizeable presence of small scale industries points to
the sector’s role in employment generation
42%
25%
33%
Unorganised sector
Organised sector
Small scale
industries

11. Shares in production by value and volume (FY11)
Source: Ministry of Food Processing Industries, Aranca Research
Rice mills account for the largest share of processing units
in the organised sector
The government’s focus on infrastructure is likely to see a
sharp rise in the number of cold storage units in the years
ahead
70%
50%
30%
50%
By Volume By Value
Unorganised sector Organised sector

12. Healthy contribution to employment generation
(FY09)
Source: Ministry of Food Processing Industries,
Aranca Research
In FY09, the sector employed 48 million people
Policymakers have identified the food processing sector as
a key one in encouraging labour movement from agriculture
to manufacturing
Notes: FY – Indian financial year (April – March) Food processing
industry
Direct
employment
(13 million)
Indirect
employment
(35 million)

13. Changing consumer
tastes
• Wide array of products, coupled with increasing global connectivity has led to a change in
the tastes and preference of domestic consumers
• This trend has been bolstered by rising incomes, increasing urbanisation, a young
population, and the emergence of nuclear families
Entry of international
companies
• Liberalisation and growth of organised retail have made the Indian market more attractive
for global players
• With a large agriculture sector, abundant livestock, and cost competitiveness India is fast
emerging as a sourcing hub of processed food
Rising business and
product innovation
• Companies have been moving up the value chain; for example, cooperatives are
transitioning from being pure producers of milk to offering a wide range of dairy products
• Firms, both domestic and global, have been focussing on product innovation to cater to
domestic tastes, while also introducing international flavours
Notes: FY – Indian Financial Year (April – March)
Rising demand on
Indian products in
international market
• Strategic geographic location and continuous increase in production of raw materials helps
India to supply cheaper products to other countries
• India’s exports of processed food and related items rose at a CAGR of 27.3 per cent
during FY08–12

14. Source: Company Website, Aranca Research
Alcoholic beverages
Aerated soft drinks and
packaged drinking water
Packaged food
Fruits, vegetables,
processed grain
Milk and milk products
Meat, poultry and marine
products
Consumer food

15. Source: Ministry of Agriculture, Aranca Research
Strong
government
support
Large domestic
market
Growing demand
Strong domestic
demand
Supply-side advantages
Rising export
opportunities
Rising disposable
incomes
Growing middle
class, urbanisation,
a young population
Changing lifestyles
and food habits
India’s greater
integration with the
global economy
Increasing exports
with advantage of
proximity to key
export destinations
Expected spike in
global demand as
emerging markets
grow at a fast pace
Favourable
climate for
agriculture; wide
variety of crops
Large livestock base
aids dairy and meat
processing sector
Inland water
bodies, long
coastline help
marine products
Policy support
Vision 2015 plan
targets trebling of
food processing
sector
Mega food parks,
Agri Export Zones to
attract FDI and aid
infrastructure
Approval of
National Mission on
Food Processing

16. Rising disposable incomes
• Strong growth in per-capita income has resulted in
greater demand for food items
• Incomes have risen at a brisk pace in India and will
continue rising given the country’s strong economic
growth prospects. Nominal per capita income is
estimated (IMF) to have recorded a CAGR of 11.2 per
cent over 2000–12
• There has also been a shift in demand –
• From carbohydrates to meat products (in line
with the various phases of economic growth)
• To convenience foods, organic and diet foods
Rising per-capita income in India
Source: IMF, Aranca Research
Note: E - Estimate, F - Forecast
-5%
0%
5%
10%
15%
20%
25%
30%
300
600
900
1,200
1,500
1,800
2,100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011F
2012F
2013F
2014F
2015F
2016F
2017F
Gross domestic product per capita, current prices Growth

17. Growing middle class, urbanisation
• Strong economic growth since the 1990s has led to–
• Rapid urbanisation and a growing middle class
• Nuclear families and dual income households
• Coupled with a young population and increasing media
penetration, this has led to a surge in demand for
packaged food, alcoholic and non-alcoholic
beverages, snacks, savouries, etc
Changing wealth dynamics of India’s population
Source: McKinsey Quarterly, Aranca Research
1% 3% 7%2% 6%
17%
12%
25%
29%
35%
40%
32%
50%
26%
15%
Globals (>22065.3) Strivers (11032.7 - 22065.3)
Seekers (4413.1 - 11032.7) Aspirers (1985.9 - 4413.1)
Deprived (<1985.9)
2008 2020 2030
Million Household,100%
Income segment
222 273 322

18. Fruit Juices and Concentrates (USD millions)
Source: Ministry of Food Processing Industries, Aranca Research.
Note – MT is Metric Tonnes
Confectioner items (USD millions)
495
529 558
588
750
FY07 FY08 FY09 FY10 FY15E
121 131
143
154
227
FY07 FY08 FY09 FY10 FY15E
Dairy whiteners/creamers (MT)Soft and aerated drinks (million cases)
359
373
388
403
479
FY07 FY08 FY09 FY10 FY15E
243
263 284
307
450
FY07 FY08 FY09 FY10 FY15E

19. Exports of processed food and related items
(USD millions)
Source: Ministry of Food Processing Industries, Aranca Research;
Notes: FY – Indian Financial Year (April – March)
During FY08-12, India's exports of processed food and
related products increased at a CAGR of 27.3 per cent to
USD24.0 billion
Main export destinations for food products have been the
Middle East and South East Asia
10.9 10.7 10.7
14.0
24.0
FY08 FY09 FY10 FY11 FY12
CAGR: 27.3%

20. Rising demand from rest of the word
• Share of exports in total output of processed food stood at 19.8 per cent in FY12
• This has primarily resulted from –
• Greater exports to advanced economies
• More demand from emerging/ developing economies as they experience strong growth
Exports of key processed products (USD millions)
Source: Ministry of Agriculture, APEDA, Aranca Research
Notes: FY – Indian Financial Year (April – March)
244
2,329
1,253
78
659
305
50
682
2,628
2,300
53
858
505 488
3,456 3,234 3,226
1,915
1,154 1,106
746
Guargum Basmati rice Buffalo meat Non basmati rice Other cereals Groundnuts Jaggery and
Confectionery
FY10 FY11 FY12

21. Supply-side advantages
• Growth in food product exports has been aided by –
• Significant improvements in product and
packaging quality
• Greater private sector participation
• India has a location advantage – it is geographically
close to key export destinations (Middle East, South
East Asia)
• The US and the UAE are the top destinations for
India’s exports of processed food and agriculture-
related products, followed by Vietnam and Saudi
Arabia
Top ten destination countries of India’s exports of
processed food and agriculture related products in
FY12 (USD million)
Source: Ministry of Food Processing Industries,
APEDA, Aranca Research
3,061
1,490 1,402
1,171
852 795 734 576
406 396
USA
UAE
Viietnam
SaudiArabia
Malasiya
Indonesia
Iran
Bangladesh
Kuwait
Nigeria

22. Shares in APEDA exports (FY12)
Source: APEDA, Aranca Research
In FY11, APEDA products had 41.6 per cent share in total exports; non-APEDA products made up the rest
Within APEDA products, cereals had the highest share (36 per cent) while for non-APEDA products marine products
dominated with a share of about 21 per cent
Shares in non - APEDA exports (FY11)
21%
20%
20%
14%
11%
14%
Marine Products
Sugar &
Mollasses
Oil Meals
Spices
Tea & Coffee
Others
36%
17%5%
35%
6%
1%
Cereals
Animal products
Processed Fruits
& Vegetables
Other processed
foods
Fresh Fruits &
Vegetables
Floriculture &
Seeds
Source: APEDA, Aranca Research

23. Notes: * Data for Global share is taken from different sources
India’s comparative advantage lies in its favourable climate,
large agriculture sector and livestock base, long coastline,
and inland water resources
India also has an edge in cost of production compared to its
competitors in Asia and the developed world
Units Global rank
Arable land
(million hectares)
157.9 2*
Area under
Irrigation (million
hectares)
63.1 1*
Coast line ('000
kilometers)
7.5 18**
Cattle (million) 205.0 1**
Source: World bank, FAOSTAT, CIA World Fact book, Aranca Research
Notes: * - For the year 2009; ** - For the year 2012
Production
(million tonnes)
FY12
Global
Share*(%)
Global rank
Milk (Cow &
Buffalo)
127.3 16.9% 1
Pulses (nes) 7 19.7% 1
Buffalo meat 3.4 42.8% 1
Bananas 29.6 27.8% 1
Mangoes and
Guavas
15.18 39.0% 1
Tea 0.96 23.0% 2
Rice (Paddy) 155.7 23.6% 2
Sugarcane 277.7 ~24.0% 2
Wheat 93.9 ~10.0% 2

24. Encouragement to
private sector
• 100 per cent export-oriented units are allowed to sell up to 50 per cent of their produce in
the domestic market
• Export earnings are exempted from corporate taxes
Tax incentives and
other sops
• Import duty scrapped on capital goods and raw materials for 100 per cent export-oriented
units
• 100 per cent tax exemption for 5 years followed by 25 per cent tax exemption for the next
5 years for new agro-processing industries
• Full excise duty exemption for goods that are used in installation of cold storage facilities
Relaxed FDI norms
• 100 per cent FDI under automatic route (except for alcohol, beer, and sectors reserved for
small scale industries)
• Repatriation of capital and profits permitted
Source: Ministry of Food Processing Industries, APEDA, Aranca Research
Notes: FDI – Foreign Direct Investment

25. Focus on infrastructure
• Assigned priority sector for bank credit
• 60 Agri Export Zones (AEZ) have been set up across the country
• According to Vision 2015, formulated by MoFPI, the government plans to establish 30
mega food parks in public-private partnership mode across the country; out of these 10
have already been approved in the first phase
• Government has also announced setting up of 15 Mega Food Parks in its FY12 Budget,
as part of the third phase of Mega Food Park Scheme
Incentives for
development of storage
facilities
• Investment-linked tax incentive of 100 per cent deduction of capital expenditure for setting
up and operating cold chain facilities (for specified products), and for setting up and
operating warehousing facilities (for storage of agricultural produce)
Source: Ministry of Food Processing Industries, APEDA, Aranca Research
Focus on R&D and
mordenisation
• The government launched initiatives such as for the Setting Up/Upgradation of Quality
Control/Food Testing Laboratory, R&D and Promotional Activity scheme and the
Technology Upgradation/Setting Up/Modernisation/Expansion of Food Processing
Industries Scheme

26. Source: APEDA, Aranca Research
Jammu & Kashmir: Apples,
walnuts
Punjab: Basmati rice,
vegetables
Himachal Pradesh: Apples
Rajasthan: Coriander,
cumin
Gujarat: Mangoes,
vegetables, sesame seeds
Andhra Pradesh: vegetables,
mango pulp, grapes, gherkins
Maharashtra: Grapes, grape
wine, mangoes, flowers, onion
West Bengal: Pineapple, litchi,
Darjeeling tea, vegetables
Uttar Pradesh: Basmati rice,
potatoes, mangoes, vegetables
Uttaranchal: Basmati rice,
aromatic and medicinal plants
Madhya Pradesh: Onions,
garlic, seed spices, lentils
Karnataka: Gherkins, rose, onions,
flowers, vanilla
Tamil Nadu: Flowers,
mangoes, cashew nuts
Assam: Ginger

27. Cumulative FDI inflows (Apr 2000–Jan 2013)
into the food and agriculture sector (USD million)
Source: Department of Industrial Policy & Promotion, Aranca Research
Between April 2000 and January 2013, FDI in agriculture
and food processing in India stood at USD5.2 billion
Demand growth, supply advantages, and policy support
have been instrumental in attracting FDI
Notes: FDI – Foreign Direct Investment,
1,489
1,801
1,135
385
223
101 52
0
400
800
1,200
1,600
2,000
Agriservices
Foodprocessing
Fermentation
Vegetableoil
Agrimachinery
TeaandCoffee
Sugar
0%
10%
20%
30%
40%
Cumulative FDI inflow (USD million)
Share of total FDI inflow (%) - right axis

28. 12th Five Year Plan (2012-17) outlay shares: Food
Processing
Source: Ministry of Food Processing Industries
(2009-10 Annual Report), Aranca Research
The government’s main focus is on supply-chain related
infrastructure like cold storage, abattoirs and food parks
Notes: GOI – Government of India
36.3%
45.4%
11.5%
5.5%
1.3% Infrastructure
development
National Mission on Food
Processing
Strengthening of
institutions
Food Safety, R&D and
Promotional Activities
Innovation Fund Scheme
Plan allocation to the Food Processing
sector: USD2.9 billion

29. Source: Thompson ONE Banker, Assorted News Articles,
Aranca Research
PE investments in the food and agriculture totaled USD229 million during 2011-12
Company Investor Type of business Deal value (USD million)
Godrej Agrovet Temasek Agribusiness 105.0
Nuziveedu Seeds Blackstone Group Floriculture 80.0
Nilgiris Dairy Actis Private Equity Dairy 65.0
Prakash Snacks Pvt Ltd Sequoia Capital Snacks 30.0
Parag Milk & Milk Products IDFC Dairy 29.0
Amalgamated Beans Coffee
Trading Co
Darby Asia Investors
Non-citrous fruit
farming
25.0
Bush Foods Overseas Pvt Ltd Standard Chartered Pvt Eq Ltd Rice milling 25.0
Tirumala Milk Products Carlyle Group Milk production 22.0
The CREMICA Group Motilal Oswal Private Equity Advisors General food products 15.0
Nashik Vinters Verlinvest SA Wine and liquor 15.0
Parag Milk & Milk Products Motilal Oswal Private Equity Advisors Dairy products 14.1
Godrej Tea IL&FS Investment Managers Coffee Coffee and tea 13.5
MajorPEdeals
Jan2010–Mar2013

30. Source: Thompson One Banker, Aranca Research
Notes: M&A – Mergers and Acquisitions
M&A activity
Target company Acquirer company Type of business Deal value (USD million)
United Spirits Ltd Relay BV Liquor 2,045
GMR Industries Ltd EID Parry Sugar 114.8
Jay Mahesh Sugar Industries NSL Sugars Ltd Sugar 51.99
Olam International Ltd Hemarus Industries Ltd Sugar 73.8
Eastern Condiments McCormick & Co Seasonings, sauces 35.0
Krishidhan Seeds Summit Partners Agricultural seeds 30.0
Bajaj Hindustan Sugar & Ind Bajaj Hindusthan Sugar, ethanol 14.1
Associated Distilleries Globus Spirits Liquor 14.0
Taraori Rice Mills Pvt Ltd Ebro Foods SA Food and Beverage 14.0
Candico India Keventer Agro Candy items 11.2
M&Adeals
Jan2010–Mar2013

31. Source: Thompson ONE Banker, Aranca Research
Note: JV – Joint Venture
Players like McCormick had identified India as a strategic market way back in the 1990s
Global players like Hershey are now keen on entering the increasingly attractive Indian market
Established players like Nestle and Coke are extending their global JVs to India
Foreign Players Indian Partner Type of business Stake ratio Year
Molson Coors Cobra India Brewing NA 2011
Dan Cake Phadnis Group Cake and biscuits 66:34 2011
McCormick Kohinoor Foods Ltd Basmati and food products 85:15 2011
McCormick Eastern Condiments Seasonings 26:74 2010
Nestle, Coca Cola -- Beverage 50:50 2010
Hershey Godrej Chocolates 51:49 2007
McCormick AVT Spices 50:50 1994

32. Source: National Dairy Development Board,
GCMMF (www.amul.com), Aranca Research
Operation Flood was initiated in 1970 by the National Dairy Development Board to achieve national self sufficiency in milk
production by creating nationwide milk grids; under Operation Flood –
India’s milk production rose to 127.3 million metric tonnes (mmt) in FY12 from 21.2 mmt in FY1969
India retained its position as the world’s largest milk producer in 2011-12
Dairy cooperatives offer employment opportunities to about 12 million farm families

33. Source: GCMMF (www.amul.com), Aranca Research
Dairy cooperative
societies (‘000)
Members (million)
Milk procurement
(million kg/ day)
Liquid milk marketing
(million litres/ day)
Milk drying capacity
(million tonnes/ day) 261
2.9
2.6
1.8
13.3
842
10.0
11.0
9.3
72.5
507.5
5.0
5.8
3.6
34.5
PHASE I
(Jul-1970 to
Mar-1981)
PHASE II
(Oct-1979 to
Mar-1985)
PHASE III
(Jul-1985 to
Mar-1996)

34. 0.9
1.3
1.5
1.7
2.1
2.4
FY07 FY08 FY09 FY10 FY11 FY12
GCMMF (Amul) sales (USD billion)
Source: GCMMF (www.amul.com), Aranca Research
Notes: CAGR – Compound Annual Growth Rate
FY – Indian Financial Year (April – March)
Gujarat Cooperative Milk Marketing Federation (GCMMF) is
the largest food products marketing organisation in India
Set up in 1967, it is India’s largest exporter of dairy products
and has been accorded ‘trading house’ status CAGR: 20.8%

35. Source: GCMMF (www.amul.com), Aranca Research
Main brand: Amul
Products: milk (including flavoured), butter, margarine, cheese, curd, desserts, infant food
Facts and Features
Producer members (million) 3.18
Village societies 16,117
Milk handling capacity (million litres/ day) 13.67
Total milk collection (FY12, billion litres) 3.88
Daily milk collection (FY12, million litres) 10.6
Milk drying capacity (million tonnes/ day) 647
NOTABLE AWARDS Authority
Excellent performance in dairy product
exports for 11 consecutive years
APEDA
CIO International IT Excellence Award
(2003) for positive business performance
through resourceful IT management and
best practices
IDG’s CIO
Magazine
(USA)
International Dairy Federation Marketing
Award (2007) for Amul’s pro-biotic ice
cream launch
International
Dairy
Federation

36. Primary focus on crushing and
trading activities
Expansion of extraction and
refining capacity; focus on
branded products
Focus on developing upstream
business; secured access to
185,000 hectares of palm
plantation; major expansion of
refining capacity
Source: Ruchi Soya website, Aranca Research
Top edible
oil producer in India with
market share of 18.2 per cent
Strong presence in
Edible oil and meal market
Sales growth at a CAGR of 25
per cent Over FY01-12
Market capitalisation of
USD473.05 million
Revenue base of over
USD6,375 million
Organic growth
phase
Strong brands like
Nutrela and Vansapati
and Sunrich
Focus on R&D
Acquisitions of
companies and
plats facilities
2001-04 2005-08 2008-12
One of the world’s
fastest growing
FMCG company
Aggressive
acquisitions of lands
for soya and palm
plantations

37. Source: Company Annual Report, Aranca Research
Note: KRBL - Khushi Ram and Behari Lal
Salient characteristics
• KRBL is world’s largest rice miller and basmati rice exporter
• It has strong brand presence through global retail giants like Carrefour, Bharti-Walmart, Spencer and Future Group
• It is the largest producer of contract farming basmati rice in the world
• The company accounts for 25 per cent of India’s total exports of branded basmati rice
• KRBL is well-integrated in terms of farming, rice processing, oil production and power generation
Sales (USD million) Exports (USD million
140.5
178.2
FY11 FY12
247.6
285.7
333.1 339.0 340.3
292.4
FY08 FY09 FY10 FY11 FY12 9M FY13
CAGR: 33.4%

38. Notes: PPP – Public Private Partnership, AEZ – Agri Export Zones, FDI – Foreign Direct Investment
Untapped market with strong
growth potential
• Fragmented market leads
to lower processing levels
and value addition
• The government plans to
raise value addition to 35
per cent by 2015 (from 20
per cent in 2005)
• PPP modules ideal for the
private sector
• Strong demand growth –
household consumption set
to double by 2020
Potential global outsourcing
hub
• Global supermarket majors
are looking at India as a
major outsourcing hub
• India enjoys favourable
supply-side fundamentals
(abundant raw materials
supply, cost advantages)
• The government has
helped by investing in
AEZs, mega food parks,
easier credit
Supply chain infrastructure
and contract farming
• Both firms and the
government are eager to
boost efficiency and access
to markets
• Investment potential of
USD22 billion in food
processing infrastructure;
100 per cent FDI in this
area
• Firms increasingly taking
recourse to contract
farming in order to secure
supply

39. 37.5
544.4
1,088.5
10th Five Year Plan 11th Five Year Plan 12th Five Year Plan
Fund allocated for infrastructure development
in food processing industry (USD million)
Notes: PPP – Public Private Partnership, AEZ – Agri Export Zones, FDI – Foreign Direct Investment
Government’s focus and launch of various schemes to provide excellent infrastructure facility in food processing sector
opens up various opportunity for private investors
Various schemes launched by government provides capital grant, subsidy, duty free export of products and tax incentives
to the investors
Project wise fund allocated in 12th Five
Year Plan (USD million)
CAGR: 27.2%
677.0
349.0
58.1 Mega Food Parks
Scheme
Scheme for
Integarted Cold
Chain
Scheme for
Modernsiation of
Abattoirs

40. Agricultural and Processed Food Products Export Development
Authority (APEDA)
NCUI Building 3, Siri Institutional Area,
August Kranti Marg, New Delhi – 110 016
Phone: 9111 26513204, 26514572, 26534186
Fax: 91 11 26526187
E-mail: headq@apeda.com
Marine Products Export Development Authority (MPEDA)
MPEDA House, Panampilly Avenue
PB No 4272, Cochin-682 036
Phone: 91 484 2311979/2311803
Fax: 91 484 2313361
e-mail: mpeda@vsnl.com, mpeda@mpeda.nic.in

41. AEZ: Agri Exports Zones
MFP: Mega Food Parks
CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
MT: Million Tonnes
IIP: Index of Industrial Production
FY: Indian Financial Year (April to March)
So FY12 implies April 2011 to March 2012
GOI: Government of India
INR: Indian Rupee
PPP: It could denote two things (mentioned in the presentation accordingly) –
Purchasing Power Parity (used in calculating per-capita GDP)
Public Private Partnership (a type of joint venture between the public and private sectors)

42. PE: Private Equity
APEDA: Agriculture & Processed food products Export Development Authority
GCMMF: Gujarat Cooperative Milk Marketing Federation
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number

43. Year INR equivalent of one USD
2004-05 44.95
2005-06 44.28
2006-07 45.28
2007-08 40.24
2008-09 45.91
2009-10 47.41
2010-11 45.57
2011-12 47.94
2012-13 54.31
Exchange Rates (Fiscal Year)
Year INR equivalent of one USD
2005 45.55
2006 44.34
2007 39.45
2008 49.21
2009 46.76
2010 45.32
2011 45.64
2012 54.69
2013 54.45
Exchange Rates (Calendar Year)
Average for the year

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