A peep into the food processing industries in India

1. FOOD PROCESSING
INDUSTRIES IN INDIA
SUDARSAN SUBRAMANIAN
MBA-ABM
KERALA AGRICULTURAL UNIVERSITY

2. FOOD PROCESSING INDUSTRIES
• Food Processing Industry (FPI) in India is a sunrise sector
that has gained prominence in the recent years.
• Easy availability of raw materials, changing lifestyles and
favorable fiscal policies has given a considerable push to the
industry’s growth.
• FPI serves as a vital link between the agriculture and
manufacturing sectors of the economy.

3. WHAT IS FOOD PROCESSING??
• It is the process of value addition to the agricultural produce
by various methods like
• Grading
• Sorting
• Packaging
• It helps to increase the shelf life of food products.

4. SECTORS OF FOOD PROCESSING
Foodprocessing
Fruits &
Vegetables
Milk
Meat & Poultry
Marine Products
Grain Processing
Consumer Food
Preserved, candied, crystallized fruits and
vegetables, juices, jams, jellies, purees, soups,
powders, dehydrated vegetables, flakes, shreds and
ready-to-eat curries.
Liquid milk, curd, flavored yoghurt, processed
cheese, cottage cheese, Swiss cheese, blue
cheese, ice cream, milk-based sweets.
Eggs, egg powder, cut meats, sausages and other
value added products.
Seafood and fish processing – processing and
freezing units.
Oil milling sector, rice, pulse milling and flour
milling sectors.
Packed foods like breads, snacks etc.

5. STATISTICS OF FOOD PROCESSING INDUSTRY
• India ranked 12th in the World in production of food and
food products in 2015
• The share of Food Processing Sector in GVA of
manufacturing sector was 8.6% in 2014-15.
• The number of registered food processing units has
increased from 37,175 in 2012-13 to 46,445 in 2015-16.
• FPI is one of the major employment intensive segments
contributing 11.69% of employment generated in all
Registered Factory sector in 2014-15

6. FOOD PROCESSING INDUSTRY'S CONTRIBUTION
TO INDIA'S GDP (FY15)
14%
86%
Food Processing Industries Others

7. FPI IS A KEY CONTRIBUTOR TO EMPLOYMENT
GENERATION IN INDIA
• As per Annual Survey, there were 1.8
million persons engaged in registered
food processing sector
• By 2024, this sector is expected to
employ 9 million people in India
0
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2
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4
5
6
7
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FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY24
contribution to employment
generation

8. VALUE CHAIN IN FOOD PROCESSING SECTOR
Inputs Production
Procurement
and storage Processing Retailing
Seeds,
Fertilizers and
Farm
equipment
Farmers,
cooperatives
and private
companies
Warehouses,
cold storage
and silos
Grading,
sorting,
milling and
packing
Retail shops,
malls, cash
and carry
National Seeds
Corporation
Limited, Cargill
& Advanta
India Ltd
Farmers,
Amul, ITC,
Pepsi,
Hindustan
Unilever Ltd
Food
Corporation of
India, NCMSL,
Arshiya
International
ITC ltd, Cargill,
Adani
Enterprises,
Olam
International
General
Merchant
Stores, Bharti
Walmart,
Aditya Birla
Retail Limited
Key
Activities
Main
Players

9. TYPES OF FPI
• Organized FPI
• Well defined organizational set up
• Registered under companies act.
• Unorganized FPI
• No specific organizational structure.
• Can be started anywhere anytime.

10. SHARE OF FPIS
Unorganized
FPI
Organized FPI
UNORGANISED SECTOR HAS THE LARGEST SHARE IN THE
SECTOR

11. 13%
13%
6%
7%
14%
6%
3%
7%
12%
4%
15%
Andhra Pradesh Gujarat Karnataka Madhya Pradesh Maharashtra Punjab
Rajasthan Tamil Nadu Uttar Pradesh West Bengal Others
SHARE OF DIFFERENT STATES IN ORGANIZED
FOOD PROCESSING

12. REASONS TO INVEST
• Geographic properties and proximity to food-importing nations
makes India favorable for the export of processed foods.
• A total of 127 agro-climatic zones have been identified in India.
• The cost of skilled manpower is relatively low as compared to
other countries.
• Attractive schemes and fiscal incentives have been introduced by
central and state governments including
• Mega Food Parks
• Capital subsidies
• Tax rebates
• Depreciation benefits
• Reduced customs and excise duties.

13. MEGA FOOD PARKS (MFP)
• A scheme of the Ministry of Food Processing Industries of the Govt of
India.
• Establish a direct linkage from farm to processing and then to consumer
markets through a network of collection centers and primary processing
centers.
• Till now 42 food parks has been planned, out of which 25 in various states
have already been sanctioned.
• 2 MFP in Kerala
• Elappully, Palakkad & Cherthala, Alappuzha
• 4 Primary processing centers in Kerala
1. Mazhuvannoor, Ernamkulam 2. Koratty, Thrissur
3. Kakkanchery, Malappuram 3. Kalpetta, Wayanad

14. FAMOUS AGENCIES
1. Marine Products Export Development
Authority (MPEDA)
• Govt of India company headquartered at Kochi
• The role is to cover various tasks of fisheries
• Increasing exports
• Specifying standards
• Processing and Marketing
• Extension and Training

15. 2.The Agricultural and Processed Food
Products Export Development Authority
(APEDA)
• Government of India company headquartered
at New Delhi
• Authority to administrate and regulate the
Single Window Clearance System relating to
the export documentation of Perishable
Agricultural Produce.

16. 3.Anand District Milk Producers Union Ltd(AMUL)
• Indian dairy cooperative, based at Anand in Gujarat
• Formed in 1946, it is a brand managed by a
cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF)

17. SWOT ANALYSIS..

18. SWOT ANALYSIS
STRENGTHS
• Availability of raw materials.
• Support from the central
government.
• Vast network of
manufacturing facilities all
over the country.
• Vast domestic market.
WEAKNESSES
• High requirement of working
capital.
• Lack of new reliable and
better accuracy instruments
and equipment.
• Inadequate automation w.r.t.
information management.
• Remuneration less attractive
for talent in comparison to
other disciplines.

19. SWOT ANALYSIS
OPPORTUNITIES
• Large crop and material base
in the country due to agro-
ecological variability.
• Integration of developments
in other fields such as
electronics, material science,
biotechnology etc.
• Opening of global markets.
THREATS
• Competition from global
players.
• Migration of trained
manpower to other industries
and other professions due to
better working conditions.

20. THANK YOU 