The document discusses the food and beverages industry in India. It notes that India is one of the largest producers of milk, fruits and vegetables, livestock, and food grains in the world. It also discusses key players in the industry, trends, growth drivers and challenges. The organized food and beverage sector in India is growing at a fast pace and projected to reach $580 billion by 2013. The industry faces issues like rising food prices, climate change, and health concerns.

1. Submitted to: Submitted by:
Dr.Sandhir Sharma Arushi Gupta
Gaurav Jain
Komal Sharma
Ankush
(Group 7 )
Adaptors

3. FOOD AND BEVERAGES INDUSTRY

4. Food and Beverage Service is the service of Food
made in the Kitchen and Drinks prepared in the
bar to the Customers (Guest) at the Food
 Beverage premises, which can be:
Restaurants, Bars, Hotels, Airlines, Cruise
Ships, Trains, Companies, Schools, Colleges,
Hospitals, Prisons, Takeaway etc

5.  Food & Beverage Outlets are divided in to the
following categories:
 Restaurants: Restaurants are places where
Food & Drink is served.
 Lounge: Lounges can be found in different
hotels. Their main purpose is to offer Food &
Drinks in relaxed surroundings with
comfortable and cozy seating in relaxed
surroundings
 Bar: Bar is a place where drinks are served.
There is usually a small Snacks Menu too

6.  The Indian food industry comprises of food
production and the food processing industry.
The food processing industry is one of the
largest in India – it is ranked fifth in terms of
production, consumption, export and
expected growth.

7.  The foods category is gaining popularity with
a swing of launches by HUL, ITC, Godrej, and
others. This category has 18 major brands
aggregating Rs. 4,600 Cr. Nestle and Amul
slug it out in the powders segment.

8.  The Indian beverage industry faces over
supply in segments like coffee and tea.
However, more than 50 per cent of the
market share is in unpacked or loose form.
 The major players in this segment are Nestlé,
HUL and Tata Tea

9. •India is second largest producer of food in
the world.
•Total food production is expected to
double in next 10 years
•Indian Food and Beverages market
expanding at CAGR of 9% during 2009-13
•Expected to reach $580 billion by 2013

10.  India is set to witness the next revolution in
the food processing industry, as per Mr
Subodh Kant Sahai, the Union Minister for
Food Processing Industries.
 The Centre has set an investment target of Rs
100, 000 crore (US$ 18.90 billion) by 2015 in
the sector. The sector is expected to grow by
20 per cent and value addition to increase by
35 per cent by 2015.

11. Player Segment
Dabur India Limited Beverages and culinary
Godrej India Ltd. Snack food and dairy products
Haldiram Snack food
Parle agro Beverages and bottled water
MTR foods Ltd. Snack food and ice cream
HUL Beverages, snack fooods
Britannia Bakery products
Cadbury India Ltd. Chocolates, dairy products
Nestle Dairy products, snack food

12.  Frito Lays (subsidiary of Pepsi Foods) is the
market leader in the organized potato wafers
market
 United Breweries (UB) is the market leader of
Indian brewery industry with around 40 %
market share
 While Dabur's Real is the biggest player in the
juices market with about half of the market
share

13.  PepsiCo's Tropicana brand enjoys about 35%
of this market.
 Other players include Parle Agro's Saint which
has about 6-8 % besides a slew of regional
players.
 Nestle has shown a rise of 0.5% with market
share of 15.6%

15.  Due to strong growth fundamentals.
 Growing population, favorable demographics
and rising income levels are key drivers of
growth in developing countries.
 Rising health consciousness and increasing
need for convenience foods are drivers of
growth in developed countries.
 Food products continue to be essential to
consumers in spite of the slowdown.

16. Rising food prices.
 Increasing transportation costs due to a rise
in oil prices.
 Decline in consumer spending

17.  Large companies with abundant cash reserves
were able to continue expanding as well as
acquire middle market companies that were
struggling to raise funds for expansion due to
crisis.
 The economic slowdown led to consumers
spending less on non-essential food items.
 Private Labels :Retailers increased manufacturing
products internally that are marketed as their in-
house brands.
 Frozen Food :Frozen food sales increased during
the recession as most consumers choose eating
at home over dining outside due to reduced
household budgets.

18.  Climate change
 Global economic downturn
 Diet-related illnesses(Health issue)
 Food safety and consumer trust
 Simplicity trend

19.  Trends in low-cost foods
 Private Labels
 Labor issue
 Rising food prices
 Social issues

20.  PepsiCo
PepsiCo was formed in 1965 with the merger of
the pepsi-cola Company and Frito-Lay. Indra
Krishnamurthy Nooyi h as been the chief executive
of PepsiCo since 2006.
 STARBUCKS—Peter Gibbons
Title: Executive vice president, Global Supply
Chain Operations
 MCDONALDS— J.C. González – Méndez
Title: Senior Vice President, North America
Supply Chain Management

21. India is the largest producer of milk in the world
Likely to become the second largest dairy products
producer in the coming years.
It is the second largest producer of fruits and vegetables.
It is home to the largest number of livestock in the world.
It is the third largest producer food grains.
It has the third largest output of fish.
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22.  Indian Food and Beverages sector accounts for around 1.8
per cent of international food trade
 The government plans to open 30 mega food parks by the
end of the 11th Five Year Plan (2007-2012).
 Food processing industries have been put in the list of
priority sectors for bank lending.
 Excise duty on aerated drinks has been reduced to 16 per
cent from 24 per cent.
 Excise duty on ready to eat packaged foods and instant
food mixes has been brought down to 8 percent from 16
percent
 Fruit and vegetable processing units have been completely
exempted from paying excise duty.

23. Segment Size(output/ Projected Processing Organized
value) growth level players
Diary US 62.67 15% 37% 15%
products billion
Fruits and 2.33 million 20% 2% 48%
vegetables tonnes
Meat and US 13 10% 1% 5%
poultry million
Fisheries 6.4 million 20% 12% N/A
tonnes
Packaged US 2 billion 85 3% 80%
food
Beverages 155 million 27% N/A 77%

24.  the organized food retail sector in India is
at a very nascent stage but has great
potential for future growth.
 The food processing sector has reportedly
emerged as one of the top ten sectors to
attract foreign direct investment.
 The hospitality industry was affected by the
global economic recession and terrorist
attacks during the past year.

25.  The biggest competition for imported foods
in the Indian retail market is the local food
industry which has an advantage of low-
cost labour and easy availability of raw
material at reasonable prices.
 Indian retailers highly value in-store
promotions to highlight international food
products.
 By the year 2014, the retail sales in the
packaged food market in India is expected
to reach US$25.8 billion