This document discusses frozen snacks and their market potential in Uttarakhand, India. It provides background on the frozen food industry and market trends. Common types of frozen snacks include french fries, potato nuggets, and veggie nuggets. Major players in the Indian frozen food market are McCain India, Mother Dairy, and Venky's. Frozen foods do not require preservatives as freezing prevents bacterial growth. Advanced freezing technologies and active packaging materials are helping to improve quality and extend shelf life. However, consumers still perceive frozen foods as unhealthy and prefer fresh alternatives.

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A
PROJECT REPORT
ON
“MARKET POTENTIAL OF FROZEN SNACKS
IN UTTRAKHAND”
SUBMITTED IN THE PARTIAL FULFILLMENT OF
“MBA”
(TWO YEAR FULL TIME PROGRAMME)
SUBMITTED BY UNDER THE SUPERVISION OF
RAHUL SINGHAL Mr. PRADEEP JOSHI
MBA 2nd SEM
BATCH – 2014-2016
QUANTUM SCHOOL OF BUSINESS
MANDAWAR, ROORKEE

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1.ABOUT INDUSTRY
The change in the lifestyle of the Indian’s creating an opportunity for market players across
industries. As there is the rise in the number of working women’s, preference for nuclear family,
young professionals living alone; the growing acceptance of western food are often cited reasons
given by firms while launching frozen/ready-to-eat meals (or microwaveable meals), ranging
from mutter paneer to cheese nuggets. In India Frozen foods are still a nascent segment for the
Indian market, but it is fast growing sector.
1.1 HISTORY
Natural food freezing (using winter frosts) had been in use by tribes in cold climates for
centuries. By 1885 a small number of chicken and geese were being shipped from Russia to
London in insulated cases using this technique. By March 1899, the "British Refrigeration and
Allied Interests" reported that a food importing business, "Baerselman Bros", was shipping some
200,000 frozen geese and chickens per week from three Russian depots to New Star Wharf,
Lower Shadwell, London over three or four winter months. This trade in frozen food was
enabled by the introduction of Linde cold air freezing plants in three Russian depots and the
London warehouse. The Shadwell warehouse stored the frozen goods until they were shipped to
markets in London, Birmingham, Liverpool and Manchester. The techniques were later
expanded into the meat packing industry. Other experiments, involving orange juice, ice cream
and vegetables were conducted by the military near the end of World War II.
1.2 CURRENT SCENARIO
In the midst of rising inflation and a recessionary environment, where many companies in India
are struggling to sustain growth rates, the food processing industry has steadily advanced to
emerge as a sector of choice for investors. Rising disposable income, changing lifestyles, and
rapid urbanization have accelerated its progression. Currently, estimated to be worth Rs. 7,500
billion, the Indian food processing industry is expected to expand in value at a compound annual

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growth rate (CAGR) of 17% to reach Rs.12,000 billion by 2015, according to a report issued by
Sathguru Management Consultants.
1.3 INTERESTING FACTS
1) What is more promising is the sector’s transformation from low value processing in a
relatively unorganized segment to delivering high value, technology oriented, branded packaged
products in a fast emerging organized environment. As a result of this transformation, there has
been a boom in the packaged food segment with new product launches, introduction of new
product categories and entry of new domestic and international players.
2) Frozen food is one such category which has caught the attention of both processors and
consumers alike. Unlike shelf-stable products, distribution of frozen items requires massive cold
chain infrastructure, which is limiting its market penetration. However, freezing ensures that
these products are minimally processed with better retention of nutritive value and hence have a
potential to become an alternative to home cooked or restaurant food.
3) The market for frozen foods in India has grown at double-digit growth rate in last few years,
reaching a size of about Rs.19 billion in 2012. Although the growth number looks impressive, it
does not truly reflect the future growth potential of the industry. More than 45% of the current
market is composed of exports of minimally processed low value marine products, meats, fruits
and vegetables.
4) Domestic per capita consumption of frozen food is close to negligible, and is about 50 times
less than intake in China. Even though the retail market value for frozen food products, doubled
to Rs. 3,650 million between 2008 and 2012, it is still primarily driven by minimally processed
vegetables.
5) A deeper analysis of the industry reveals that the market for frozen food has a potential to
grow three times in next five years. However, there are certain constraints which are limiting
growth. The industry is characterized by low revenue to asset ratio, owing to massive investment
in high precision manufacturing and storage infrastructure required to serve the retail and
foodservice segments. Typical revenue to asset ratio in the frozen food segment will be in range
of 1-2.5, as compared to range of 2-5 in other comparable segments such as ice cream,

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confectionary, etc. This aspect, coupled with low market penetration due to an underdeveloped
cold chain and food retail infrastructure, creates entry barriers for new players and also restricts
the existing companies from investing heavily in branding and R&D for product innovation. This
is leading to low awareness and acceptability of frozen product among consumers.
1.5 NEGATIVE POINTS
A market survey conducted by Sathguru Management Consultants revealed that consumers
neither find the taste and texture of frozen products at par with so-called “fresh” food, nor is
present packaging appealing enough to prompt them to buy such products. The major deterrents
in consuming frozen food are perceptions among many Indians that it is unhealthy, due to an ill
conceived believe that chemical preservatives are used, and that frozen have less nutritive value.
Hence, consumers prefer to use frozen food only when so-called fresh food is not available and
do not see it as a substitute to home cooked or restaurant food.
Moreover, the product range available in India consists of minimally processed products in
contrast to specialty products such as desserts, pizza, ready meals, etc, that are available in
frozen form in developed countries. Indians consume processed food to get a sensory experience
that is difficult to obtain in home cooked food. Hence, in the foodservice sector, cuisines such as
Chinese, Mexican and Italian are getting increasingly popular. However, frozen variants of these
products are not generally available to Indian consumers.
It is imperative for any player to keep in mind the following critical success factors to launch and
sustain frozen snacks in India:
 A problem found with microwaving a frozen product is that the thicker the product, the
greater the disparity in reheating. Hot spots tend to form with products of higher
viscosity.
 The consumption diversity of food products in India is different across regions and
therefore the decision to launch any product must be assessed in detail to ascertain the
extent, and potential, of the market that can be targeted for high revenues

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 Indian consumers tend to prefer products which offer more value for the corresponding
price points. To attract them manufacturers have to walk a tightrope in matching product
size and product price. As a result, smaller pack sizes, which can be retailed at a lower
cost, will become popular.
 It is critical while introducing a product in this market to educate the customer and raise
awareness about the quality, value, and usage of the product.
It is good to start the new business related to food but the main thing is to maintain the quality
and price as per the customer preferences and taste. And it is also important to understand the
demographic environment of the place first.

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2.ABOUT FROZEN SNACKS
Frozen snacks are preserve from the time it is prepared to the time it is eaten. The frozen food
industry is also known as convenience food industry, which started by offering basic frozen
vegetables and fries, today offers a wide range of products, from fruits & vegetables to frozen
meats and ready-to-cook, snacking and full meal options. In terms of product categories, Frozen
Vegetables and Frozen Snacks together make up a more than 65% share of the market and their
collective volume share consumption for 2012 exceeded 85%.
2.1 TYPES OF FROZEN SNACKS
There are various types of frozen snacks are available in market as given below_
1) French Fries are a taste sensation - crispy on the outside, fluffy in the center and
delicious through and through.
2) Smiles (Crispy happy potatoes) are delicious mashed potatoes, seasoned and shaped into happy
faces. Go ahead, take a bite and keep smiling!
3) Extra crunchy potato nuggets light, golden bite sized deliciously seasoned with chilli
and garlic.
4) Potato Cheese Shotz are a flavorsome union of potatoes, cheese and herbs seasoning,
coated in crunchy golden breadcrumbs.
5) Veggie Nuggets are irresistible combination of potatoes, vegetables & bold Tandoori
seasoning, finely coated in crispy golden bread crumbs.
6) Aloo Tikki is a classic combination of mashed potatoes and traditional Indian spices.
7) Crispy parsley coated potatoes are crispy coated potato wedges with a special blend of
seasoning and herbs. Ready in minutes, they are perfect as snacks or as accompaniment
to meals
Various types of other frozen foods are also available but they come under the category of frozen
meals because they used as complete food not as snacks. The list is according to the products
available in the Indian market.

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2.2 MARKET PLAYERS
The large numbers of market players are available in the markets which are dealing in frozen
food and snacks. The market is dominated by various organized players and unorganized players
(local players/ unbranded products).
Name of some “Organized Players” are:
1) McCain India (products are used by leading fast food chains, hotels, restaurants, catering
companies and are popular for in-home consumption)
2) Mother Dairy (stands out with a ~50% market share in the vegetables segment as a result
of the widespread popularity of its Safal brand. )
3) Venky’s (V.H. Group)
4) Al-Kabeer (Al-Kabeer Group)
5) Sumeru (Innovative Foods)
6) Everfresh (Temptations Foods)
7) Meatzza (Darshan Foods)
8) McCain Foods (McCain Foods India)
2.3 PRESERVATIVES
Frozen products do not require any added preservatives because microorganisms do not grow
when the temperature of the food is below −9.5 °C (14.9 °F), which is sufficient on its own in
preventing food spoilage. Long-term preservation of food may call for food storage at even
lower temperatures. Carboxymethylcellulose (CMC), a tasteless and odorless stabilizer, is
typically added to frozen food because it does not adulterate the quality of the product.
The speed of the freezing has a direct impact on the size and the number of ice crystals formed
within a food product's cells and extracellular space. Slow freezing leads to fewer but larger ice
crystals while fast freezing leads to smaller but more numerous ice crystals. Large ice crystals
can puncture the walls of the cells of the food product which will cause a degradation of the
texture of the product as well as the loss of its natural juices during thawing. That is why there
will be a qualitative difference observed between food products frozen by ventilated mechanical
freezing, non-ventilated mechanical freezing or cryogenic freezing with liquid nitrogen.

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2.4 TECHNOLOGY
The freezing technique itself, just like the frozen food market, is developing to become faster,
more efficient and more cost-effective.
Mechanical freezers were the first to be used in the food industry and are used in the vast
majority of freezing / refrigerating lines. They function by circulating a refrigerant, normally
ammonia, around the system, which withdraws heat from the food product. This heat is then
transferred to a condenser and dissipated into air or water. The refrigerant itself, now a high
pressure, hot liquid, is directed into an evaporator. As it passes through an expansion valve, it is
cooled and then vaporizes into a gaseous state. Now a low pressure, low temperature gas again, it
can be reintroduced into the system.
Cryogenic or flash freezing of food is a more recent development, but is used by many leading
food manufacturers all over the world. Cryogenic equipment uses very low temperature gases
usually liquid nitrogen or solid carbon dioxide – which are applied directly to the food product.
2.5 PACKAGING
Frozen food packaging must maintain its integrity throughout machine filling, sealing, freezing,
storage, transportation, thawing, and often cooking. As many frozen foods are cooked in a
microwave oven, manufacturers have developed packaging that can go straight from freezer to
the microwave.
In 1974, the first Differential Heating Container (DHC) was sold to the public. A DHC is a
sleeve of metal designed to allow frozen foods to receive the correct amount of heat. Various
sized apertures were positioned around the sleeve. The consumer would put the frozen dinner
into the sleeve according to what needed the most heat. This ensured proper cooking.
Today there are multiple options for packaging frozen foods. Boxes, cartons, bags, pouches,
heat-in-bag pouches, lidded trays and pans, crystallized PET trays, and composite and plastic
cans.
Scientists are continually researching new aspects of frozen food packaging. Active packaging
offers a host of new technologies that can actively sense and then neutralize the presence of
bacteria or other harmful species. Active packaging can extend shelf-life, maintain product

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safety, and help preserve the food over a longer period of time. Several functions of active
packaging are being researched:
 Oxygen scavengers
 Time Temperature Indicators and digital temperature data loggers
 Antimicrobials
 Carbon Dioxide controllers
 Microwave susceptors
 Moisture control: Water activity, Moisture vapor transmission rate, etc.
 Flavor enhancers
 Odor generators
 Oxygen-permeable films
 Oxygen generators
 Validation of cold chain