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Indian Food Industry
              and
New Entrepreneurial Opportunities
                    Dr Saikat Datta Mazumdar,
        Chief Operating Officer (COO), NutriPlus Knowledge
                             Program,
            Agribusiness and innovation Platform (AIP),
                              ICRISAT

  2/23/2012           NIABI 2012, 6-8 February 2012,
                               New Delhi
Indian Food Industry


    • Multinationals

    • National

            • Small scale (SSE)

            • Medium scale (MSE)

            • Unorganised sector (UOS)


2/23/2012              NIABI 2012, 6-8 February 2012,
                                New Delhi
Indian Food Industry

                                                            MSI


                                   Large
                                   Public
                                   Sector
                                                                        UOS
                                   companies
 Multinationals                                             National


                                      Large Pvt.
                                      Sector
                                      companies
                                                                  SSI




            Entrepreneurial opportunity
2/23/2012                  NIABI 2012, 6-8 February 2012,
                                    New Delhi
Socio-economic changes in
                             India
        Nuclear
        Families




                     Purchasing
                       power




                                        Health
                                    consciousness




                                                         Rural migration


2/23/2012             NIABI 2012, 6-8 February 2012, New Delhi
Entrepreneurship and Rural
                      India




2/23/2012      NIABI 2012, 6-8 February 2012, New Delhi
Entrepreneurship and Rural
                             India
PURA complex:

• Promote horticulture and floriculture products

• Collaboration with nearby agricultural universities and R&D institutions

• There will be agro-processing industries in each PURA complex

• Additional non-farming revenue: Creation of dairy and fish farms in
  each PURA complex

• Provision of employment to all employable people of the village through
  additional jobs in dairy, agro-processing, construction, handicraft and
  tourism enterprises

• Aim: Poverty line should come down to zero in six years.
    2/23/2012             NIABI 2012, 6-8 February 2012,
                                   New Delhi
Entrepreneurship and Rural
                           India


     “Of course to achieve the above performance, a dynamic,
 empowered PURA management board structure is very vital. This has
           to be evolved with the active participation of State
        Governments, district authorities, societal transformers,
    educational institutions, small scale industries or an enterprise in
     association with the Panchayat. Finally, it will be managed as a
                                viable and
           sustainable business proposition through the local
                            entrepreneurship”

            Dr. APJ Abdul Kalam                          www.abdulkalam.com




2/23/2012               NIABI 2012, 6-8 February 2012,
                                 New Delhi
Inclusive Market Oriented Development (IMOD)




2/23/2012        NIABI 2012, 6-8 February 2012,
                          New Delhi
Entrepreneurial opportunities
                 in Food Processing

    Fruits and Vegetables:
       • Presently consumers spending on
          unprocessed fruits and vegetables
       • Supply chain losses 10-25%

    Entrepreneurial Opportunities:
       • Establish enterprises that provide
         alternative products
       • Supply chain (Cold storage, Chilled/frozen
         carrier etc.)
       • Organic

2/23/2012          NIABI 2012, 6-8 February 2012,
                            New Delhi
Entrepreneurial opportunities
                  in Food Processing
        Cereals:
           • Secondary processed products
           • Wheat flour and rice dominate
           • Dominated by unorganized and
             unbranded players
           • Demand for cereal based tertiary
             products

        Opportunities:
           • Establish enterprises focused on tertiary
             value-added products
           • Ethnic snacks, Health foods, Infant foods
           • Organic
           • Alternative cereals: Sorghum, millet
2/23/2012           NIABI 2012, 6-8 February 2012,
                             New Delhi
Entrepreneurial opportunities
                 in Food Processing
        Beverages:
           • A mature tertiary product market
           • Demand for healthy beverages
        Opportunities:
           • Opportunities for enterprises to
             manufacture healthy beverages
           • Opportunities in enterprises for growing
             and processing of herbs, health
             ingredients etc.
           • Organic
           • New opportunities: Sweet sorghum syrup
             enterprise (ICRISAT, NutriPlus)

2/23/2012           NIABI 2012, 6-8 February 2012,
                             New Delhi
Entrepreneurial opportunities
                 in Food Processing
  Milk and milk products:
      • Main consumption in original form
      • Addresses the aspiration of healthy lifestyle
  Opportunities:
      • Opportunities for enterprises at village level
        (bulk coolers) to be sourcing point for big
        players
      • Opportunities in enterprises for value added
        health products (probiotics)
      • Enterprises supporting the dairy based health
        product industry e.g. cultures and prebiotics
      • Organic
      • New opportunities: Quality fodder and feed for
        the animals
2/23/2012         NIABI 2012, 6-8 February 2012,
                           New Delhi
Entrepreneurial opportunities
                     in Food Processing
Oilseeds:
    • Processed products (edible oil filtered/refined)
    • Trend towards marketing of healthy oils (blending)
    • Deficit in production (import of PKO)
Opportunities:
    • Opportunities for enterprises to involve in cultivation of oil
      seeds
    • Efficient farm level extraction units (screw press)
    • Enterprises based on byproducts e.g. de-oiled cake for animal
      feed and as manure
    • Entrepreneurship in the area of functional (healthy) oils:
      Production and marketing
      Organic
    • New opportunities: Promote high yielding/processing varieties
      by linking research to entrepreneurs
    2/23/2012           NIABI 2012, 6-8 February 2012, New Delhi
Entrepreneurial opportunities
                    in Food Processing
Other opportunities:

• Consultancy:
    Food research (Food scientists as entrepreneurs)
    Market research and training
    Private food laboratories
    Legal

• Services sector:
    Ingredient supplier (e.g. neutraceutical etc.)
    Food machinery (indigenous manufacture of quality food
    machinery)
    Value-chain (Infrastructure/logistics, retailing etc.)
   2/23/2012           NIABI 2012, 6-8 February 2012, New Delhi
Skill needs of the Indian Food
                          Industry
Entrepreneurs need to provide quality products
Technical skills:

• Basic food science knowledge

• Product development

• Production

• Quality management skills : ISO, HACCP

• Understanding of the national and International Food Laws
  (FSSA, Codex etc.)
   2/23/2012         NIABI 2012, 6-8 February 2012,
                              New Delhi
Skill needs of the Indian Food
                          Industry
Entrepreneurs need to survive in the market

Business and marketing skills:
• Communication skills

• Business plan

• Market research




   2/23/2012          NIABI 2012, 6-8 February 2012,
                               New Delhi
The Message!

•Focus needs to be on local and market oriented
entrepreneurship development
•New avenues of entrepreneurship needs to be the focus of
Entrepreneurial Development Programs (EDPs) in food
processing
•Focus on new skill development in EDPs
•Ultimate aim “Empowerment through Entrepreneurship”
•IMOD: guiding principle to ensure food and nutritional security
for promoting the cause of the small-holder farmers

   2/23/2012             NIABI 2012, 6-8 February 2012, New Delhi
ICRISAT’s NutriPlus Knowledge
       Program (NPK)
• NPK works closely with the Agri-business incubator (ABI)
  in order to provide training, technology support for product
  and packaging development, labelling and regulatory
  support, and innovative post harvest processing solutions



• Entrepreneur development workshops, quality control and
  quality assurance training programmes, street food safety
  awareness programmes, conferences and symposiums


2/23/2012           NIABI 2012, 6-8 February 2012,
                             New Delhi
Technical and regulatory services and consultancy

NPK provides:
• technical and regulatory services and consultancy in the area of food
  product development

• R&D consultancy (new process, product and packaging solutions),
  quality control and quality assurance services (raw material and finished
  product analysis) and food regulatory consultancy (Regulatory
  clearances for new products.

• Facilitate registration of new ingredients as GRAS. USFDA, EU,
  CODEX etc. and Regulatory support requirements to exporters,
  stake-holders in the food industry


 2/23/2012                NIABI 2012, 6-8 February 2012,
                                   New Delhi
New product concepts…..

               Flavored Ready-to-serve (RTS)
            Beverage from Sweet Sorghum Syrup




• Refreshing flavored beverage formulated from sweet-sorghum syrup
• Method developed for production of food grade sweet- sorghum syrup


    2/23/2012           NIABI 2012, 6-8 February 2012,
                                 New Delhi
New product concepts…..

   Other products form sweet sorghum syrup




2/23/2012       NIABI 2012, 6-8 February 2012,
                         New Delhi
On World Heart Day, ICRISAT comes up
          with healthy snack foods
• Healthier and safer nutritious snacks made of sorghum and millet for
  the fast food consumers
• These cereals have higher nutrition value than rice and wheat besides
  being rich in dietary fibre, a quality that makes them diabetic friendly




     2/23/2012            NIABI 2012, 6-8 February 2012, New Delhi
“Global Symposium on Ready-to-Eat (RTE) Foods:


An initiative of NutriPlus in partnership with ASSOCOM to
create “Opportunities for R&D, Entrepreneurship and Markets”
with a promise of better, healthier and safer convenience food for
the consumers through R&D and more market opportunities and
enhanced entrepreneurship within the food industry.




   2/23/2012            NIABI 2012, 6-8 February 2012,
                                 New Delhi
Capacity Building: Sweet sorghum syrup workshop
                     at ICRISAT

  Entrepreneur development workshop (EDW) was conducted for 25 prospective
  entrepreneurs from Andhra Pradesh and Maharashtra. The workshop focused on
  Establishing and managing a commercial Sweet Sorghum Syrup enterprise for
  Food Applications




Particpants of the entrepreneur development workshop
      2/23/2012               NIABI 2012, 6-8 February 2012,
                                       New Delhi
FACILITIES AT NutriPlus

• Product development laboratory with
  capability for formulation development and
  shelf life studies
• Analytical laboratory
• Sensory science laboratory
• Food safety laboratory


2/23/2012     NIABI 2012, 6-8 February 2012, New Delhi
Thank You!

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Food processing business opportunities

  • 1. Indian Food Industry and New Entrepreneurial Opportunities Dr Saikat Datta Mazumdar, Chief Operating Officer (COO), NutriPlus Knowledge Program, Agribusiness and innovation Platform (AIP), ICRISAT 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 2. Indian Food Industry • Multinationals • National • Small scale (SSE) • Medium scale (MSE) • Unorganised sector (UOS) 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 3. Indian Food Industry MSI Large Public Sector UOS companies Multinationals National Large Pvt. Sector companies SSI Entrepreneurial opportunity 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 4. Socio-economic changes in India Nuclear Families Purchasing power Health consciousness Rural migration 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 5. Entrepreneurship and Rural India 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 6. Entrepreneurship and Rural India PURA complex: • Promote horticulture and floriculture products • Collaboration with nearby agricultural universities and R&D institutions • There will be agro-processing industries in each PURA complex • Additional non-farming revenue: Creation of dairy and fish farms in each PURA complex • Provision of employment to all employable people of the village through additional jobs in dairy, agro-processing, construction, handicraft and tourism enterprises • Aim: Poverty line should come down to zero in six years. 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 7. Entrepreneurship and Rural India “Of course to achieve the above performance, a dynamic, empowered PURA management board structure is very vital. This has to be evolved with the active participation of State Governments, district authorities, societal transformers, educational institutions, small scale industries or an enterprise in association with the Panchayat. Finally, it will be managed as a viable and sustainable business proposition through the local entrepreneurship” Dr. APJ Abdul Kalam www.abdulkalam.com 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 8. Inclusive Market Oriented Development (IMOD) 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 9. Entrepreneurial opportunities in Food Processing Fruits and Vegetables: • Presently consumers spending on unprocessed fruits and vegetables • Supply chain losses 10-25% Entrepreneurial Opportunities: • Establish enterprises that provide alternative products • Supply chain (Cold storage, Chilled/frozen carrier etc.) • Organic 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 10. Entrepreneurial opportunities in Food Processing Cereals: • Secondary processed products • Wheat flour and rice dominate • Dominated by unorganized and unbranded players • Demand for cereal based tertiary products Opportunities: • Establish enterprises focused on tertiary value-added products • Ethnic snacks, Health foods, Infant foods • Organic • Alternative cereals: Sorghum, millet 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 11. Entrepreneurial opportunities in Food Processing Beverages: • A mature tertiary product market • Demand for healthy beverages Opportunities: • Opportunities for enterprises to manufacture healthy beverages • Opportunities in enterprises for growing and processing of herbs, health ingredients etc. • Organic • New opportunities: Sweet sorghum syrup enterprise (ICRISAT, NutriPlus) 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 12. Entrepreneurial opportunities in Food Processing Milk and milk products: • Main consumption in original form • Addresses the aspiration of healthy lifestyle Opportunities: • Opportunities for enterprises at village level (bulk coolers) to be sourcing point for big players • Opportunities in enterprises for value added health products (probiotics) • Enterprises supporting the dairy based health product industry e.g. cultures and prebiotics • Organic • New opportunities: Quality fodder and feed for the animals 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 13. Entrepreneurial opportunities in Food Processing Oilseeds: • Processed products (edible oil filtered/refined) • Trend towards marketing of healthy oils (blending) • Deficit in production (import of PKO) Opportunities: • Opportunities for enterprises to involve in cultivation of oil seeds • Efficient farm level extraction units (screw press) • Enterprises based on byproducts e.g. de-oiled cake for animal feed and as manure • Entrepreneurship in the area of functional (healthy) oils: Production and marketing Organic • New opportunities: Promote high yielding/processing varieties by linking research to entrepreneurs 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 14. Entrepreneurial opportunities in Food Processing Other opportunities: • Consultancy:  Food research (Food scientists as entrepreneurs)  Market research and training  Private food laboratories  Legal • Services sector:  Ingredient supplier (e.g. neutraceutical etc.)  Food machinery (indigenous manufacture of quality food  machinery)  Value-chain (Infrastructure/logistics, retailing etc.) 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 15. Skill needs of the Indian Food Industry Entrepreneurs need to provide quality products Technical skills: • Basic food science knowledge • Product development • Production • Quality management skills : ISO, HACCP • Understanding of the national and International Food Laws (FSSA, Codex etc.) 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 16. Skill needs of the Indian Food Industry Entrepreneurs need to survive in the market Business and marketing skills: • Communication skills • Business plan • Market research 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 17. The Message! •Focus needs to be on local and market oriented entrepreneurship development •New avenues of entrepreneurship needs to be the focus of Entrepreneurial Development Programs (EDPs) in food processing •Focus on new skill development in EDPs •Ultimate aim “Empowerment through Entrepreneurship” •IMOD: guiding principle to ensure food and nutritional security for promoting the cause of the small-holder farmers 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 18. ICRISAT’s NutriPlus Knowledge Program (NPK) • NPK works closely with the Agri-business incubator (ABI) in order to provide training, technology support for product and packaging development, labelling and regulatory support, and innovative post harvest processing solutions • Entrepreneur development workshops, quality control and quality assurance training programmes, street food safety awareness programmes, conferences and symposiums 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 19. Technical and regulatory services and consultancy NPK provides: • technical and regulatory services and consultancy in the area of food product development • R&D consultancy (new process, product and packaging solutions), quality control and quality assurance services (raw material and finished product analysis) and food regulatory consultancy (Regulatory clearances for new products. • Facilitate registration of new ingredients as GRAS. USFDA, EU, CODEX etc. and Regulatory support requirements to exporters, stake-holders in the food industry 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 20. New product concepts….. Flavored Ready-to-serve (RTS) Beverage from Sweet Sorghum Syrup • Refreshing flavored beverage formulated from sweet-sorghum syrup • Method developed for production of food grade sweet- sorghum syrup 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 21. New product concepts….. Other products form sweet sorghum syrup 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 22. On World Heart Day, ICRISAT comes up with healthy snack foods • Healthier and safer nutritious snacks made of sorghum and millet for the fast food consumers • These cereals have higher nutrition value than rice and wheat besides being rich in dietary fibre, a quality that makes them diabetic friendly 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 23. “Global Symposium on Ready-to-Eat (RTE) Foods: An initiative of NutriPlus in partnership with ASSOCOM to create “Opportunities for R&D, Entrepreneurship and Markets” with a promise of better, healthier and safer convenience food for the consumers through R&D and more market opportunities and enhanced entrepreneurship within the food industry. 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 24. Capacity Building: Sweet sorghum syrup workshop at ICRISAT Entrepreneur development workshop (EDW) was conducted for 25 prospective entrepreneurs from Andhra Pradesh and Maharashtra. The workshop focused on Establishing and managing a commercial Sweet Sorghum Syrup enterprise for Food Applications Particpants of the entrepreneur development workshop 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi
  • 25. FACILITIES AT NutriPlus • Product development laboratory with capability for formulation development and shelf life studies • Analytical laboratory • Sensory science laboratory • Food safety laboratory 2/23/2012 NIABI 2012, 6-8 February 2012, New Delhi