This is a brief report prepared by Vishleshan for Samvid Global. The report provides an overview of Indian Food and Agricultural sector

1. w w w. s a m v i d g l o b a l . c o m
insight into
SECRETS TO SUCCEED
Agriculture & Food
Industry
Agriculture and Food Industry has been playing a
crucial role in the Indian economy. But only a few
have unearthed the magic formula for success in this
giant of an industry.
2012-13

2. Even after six decades of independence,
Agriculture happens to be the mainstay of the
Indian population. The rapid industrialization and
growth of other industries haven’t dismissed the
dominance of Agriculture in the Indian economy.
In spite of being the second largest food
producer after China, the contribution to global
food trade by India is negligible. With cumulative
wastes amounting to nearly 7 billion USD and
The organizations involved in Agricultural products need to understand that they need a system wide strategy
across the value chain so that they can maximize the profits from Farmer’s Markets to Terminal Markets. Of
course, horticulture and other allied industries are on a rise and they have been increasing by leaps and
bounds. The following is the growth story of fruits and vegetables in India:
growth being slow as compared to other
industries, Agriculture does not look like a very
attractive segment. But the picture is not all grey.
The growth in the sectors peripheral to
Agriculture has been tremendous and there are
ample opportunities to explore provided one
employs the right tactics and strategy. A bird’s eye
view of how the margins are shifted in agriculture
is as follows:
Total mark-up in the chain
Export of fruits and vegetables from India Growth story through the years
Total Margin - 60% to 75%
Margin from farmers
to wholesaler 30% 35%
Small /
Marginal
Consolidator at
Village level
Market level
commission
Wholesaler
Sub-
Wholesaler
Retailer
Consumer
< 25%
< 6%
< 10%
< 8%
< 10%
2.10
2008 - 09
Source: Ministry of commerce and industry
* In million hectors
2009 - 10 2010 - 11
(in million tonnes)
2.08
1.65
0.46
0.46
0.41
Vegetables
1991-92
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12***
2012-13****
Year Area* Production*
127.7
165.9
162.7
192.0
184.4
187.7
193.8
202.0
206.6
208.7
218.2
NA
NA
96.5
147.7
147.7
153.3
166.9
182.8
191.8
211.7
214.7
223.0
240.5
250.0
260.0
Fruits
** In million tones
***Estimated production ****Targeted production
Source: Ministry of agriculture

3. The Food processing Industry is booming and the
growth rate is also noteworthy. But there are a
few hindrances which has been affecting the
growth:
• The small players who are unorganized are
about 70% and accounts for about 50% of
the value.
• India’s share in global scenario is about 2%
which is insignificant.
• No Indian brands have global presence.
• Most of the exports are in bulk and lack
branding.
• Mostly units are involved in primary value
addition .The secondary and tertiary value
addition units are minimal resulting low
value addition.
• Lots of wastage due to post harvest losses.
Sector/Industry Size of the industry (Billion US$) Growth Rate (%)
Food processing 176.41 13.07
Cold Storage & Cold Supply Chain 4.06 26.21
Agricultural Equipment and Machinery 9.8 5.2
Food Packaging 22.47 15.1
Poultry & Livestock 10.3 13.75
Herbal & Medicinal Plants 1.84 16.2
Fertilizers 57.08 7.2
Organic Food products 2.47 38.3
Breakfast Cereal 148.3 12.7
Crop Protection Chemicals 12.6 3.4
Some of the other allied sectors growth story is tabulated below:
In Food and Agriculture domains, the success
hugely depends on how well the products are
marketed across the channels. The Retail channels
play a huge role in the success of the products.
The food and beverage retail market is primarily
made up of small and independent family owned
stores, which hold over 65 percent of market
share. With the advent of Supermarkets and
Hypermarkets, the market-share of the stores
have somewhat reduced. But still they are
quintessential for the success of the brands as
they influence the retail consumer’s buying
decision. Besides the Channels, Packaging and
Pricing are very essential to woo customers. The
right price with the right package can do wonders
for the business.

4. Samvid Global with its dedicated and intelligent in-house Market Research & Consulting team can help you
identify trends, forecast growth and help you in taking your business decisions. With the help of our Marketing
& Sales Outsourcing Service, you can decide on the geographies which would bring you maximum profit and
make your product an instant hit. We can also help you in terms of your pricing policies and your promotional
activities. It is often argued that the product’s quality is not good enough to bring in customers; it is also
necessary that the customers know that a quality product exists for them. Our Promotional and Marketing
Campaigns will ensure that the target audience hears about the product. Samvid Global comes with a host of
Marketing & Sales Solutions which you can avail of to make your business blossom.
The Samvid Approach
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