The Indian food technology sector. Title
Market Intelligence Report
Language
English
Number of pages 174
Important notice The information and data contained in this publication are drawn from a variety of sources and have been researched with the greatest possible care. Persons wishing to use information from this publication do so at their own risk.
Publisher
Osec Stampfenbachstrasse 85 CH-8006 Zurich, Switzerland Tel. +41 44 365 51 51, Fax +41 44 365 52 21 www.osec.ch, contact@osec.ch
Author
T&A Trade Solutions 401, 4th Floor, Padma Palace 86 Nehru Place 110019 New Delhi, India Tel. +91 11 41709326, Fax + 91 40516560 www.insideindiatrade.com
Copyright
© 2011 Osec. All rights reserved. All copyright in this publication and related works is owned by Osec. The same may not be e r produced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication), modified or in any manner communicated to any third party except with the written approval of Osec. This publication is for information purposes only. While due care has been taken during the compilation of this publication to ensure that the information is accurate to the best of Osec’ s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for pr ofessional advice. Osec neither recommends nor endorses any specified products or services that may have been mentioned in this publication and nor does it assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this publication. Osec shall, in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this publication.
The Swiss Business Hub India cannot be held liable for the accuracy and completeness of the information contained in this publication. This report has been prepared in collaboration with T&A Trade Solutions, a boutique advisory firm based in New Delhi.
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TABLE OF CONTENTS
1.0 Foreword..................................................................................................... 7 2.0 Research Methodology..................................................................................... 8 3.0 Executive Summary ....................................................................................... 10 4.0 Market Overview .......................................................................................... 12 5.0 Indian Food Market........................................................................................ 18 6.0 Market Segmentation ..................................................................................... 21 6.1 Fruits and Vegetables ................................................................................... 23 6.2 Meat and Poultry ......................................................................................... 30 6.3 Dairy ....................................................................................................... 33 6.4 Marine Food Segment.................................................................................... 45 6.5 Grains ...................................................................................................... 48 6.6 Consumer Foods .......................................................................................... 50 7.0 Opportunities - Food Processing Value Chain ........................................................ 58 7.1 Food Processing Equipment ............................................................................ 60 7.2 Post Harvest Technology ................................................................................ 71 7.3 Food Packaging ........................................................................................... 75 7.4 Integrated Cold Chain ................................................................................... 83 7.4.1 Refrigeration Equipment........................................................................... 90 7.5 Modern Retail ............................................................................................. 93 8.0 Key Challenges ............................................................................................. 96 9.0 Emerging Growth Areas ................................................................................ 102 9.1. Food Safety ............................................................................................ 102 9.2. Functional Foods ...................................................................................... 107 9.3. Food Biotechnology ................................................................................... 110 9.4 Imported Food Products............................................................................... 113 9.5 Institutional Catering .................................................................................. 117 9.6 Quick Service Restaurants ............................................................................ 120 10.0 Foreign Players......................................................................................... 124 10.1 Case Studies ........................................................................................... 127 11. Government Incentives................................................................................. 136
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12.0 Geographical Clusters ................................................................................. 141 12.1 Agri Export – Zones (AEZs)........................................................................... 143 12.2 Mega Food Parks ...................................................................................... 145 13.0 Government Policy & Regulations .................................................................. 158 13.1 Food safety & standards act (2006) ................................................................ 158 13.2 Imports ................................................................................................. 159 13.3 Import Duties.......................................................................................... 162 13.4 Labelling ............................................................................................... 165 13.5 Trademark Registration.............................................................................. 167 14.0 Trade Events............................................................................................ 169 15.0 Influencers .............................................................................................. 170 16.0 Conclusion............................................................................................... 174
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Growth Drivers
Technology, price, delivery and performance standards are critical factors that determine whether foreign food processing equipment can be sold in the Indian market.
Low cost production is important as well. Imported, advanced machines are much more expensive than locally available products but they offer significant benefits in terms of yield recovery, lower maintenance and better quality output.
Indian buyers of equipment are beginning to have a clear plan regarding the provision of upgrades and addons to their products, especially those required for capacity expansion.
Indian food processors look for support in maintenance and operations, higher productivity, efficient lines, automation, improved ergonomics, operator friendliness, easy maintenance, compliance with the safety and hygiene requirements.
Due to the unique requirement of flexible & easy maintenance tools, & India being a temperature sensitive zone with temperatures from 0 to 45 degrees Celsius, value addition/ customization of foreign machinery to suit the Indian market is a must.
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8.0 K EY C HALLENGES The world’s largest food processors are diverse, with business interests across subsegments. In contrast, Indian companies’ scale of operations is small and restricted to few products. This leads to high unit cost of production and low global competitiveness. They are unable to reinvest in quality and brand/market development.
Infrastructure Challenges �
Indian food processing related infrastructure for agriproduce is grossly inadequate, especially at sea ports and airports. India has merely 23.3 million Metric Tons (MT) of cold storage facilities whereas it needs a minimum 910 million MT more. The cold storage facilities now available are mostly for a single commodity like potatoes, which results in poor capacity utilization.
Infrastructure Challenges
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India's limited controlled atmosphere storage facilities, technologies, protocols and machinery are chiefly imported. India needs to develop expertise to assess and modify and if necessary upgrade manufacturing capabilities according to our specific requirements.
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There is also a lack of trained experts for testing, quality certification, R&D etc. who can educate the farming community of the standards and requirements and the processes of obtaining certifications. R&D efforts also are a drawback.
Research & Development In order to improve farm productivities, continuous introduction of innovative technologies requires an effective and formidable R & D network. While the
Government has taken various initiatives in this regard, their efforts have hitherto been unrewarding. This stems from the absence of a clear strategy that defines responsibilities, prioritizes the research agenda rationally, and recognizes that the research mode is not 96 | P a g e
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