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Introduction Of Food Processing Industry
India is the world's second largest producer of food next to China, and has the potential of being
the biggest with the food and agricultural sector. The total food production in India is likely to
double in the next ten years and there is an opportunity for large investments in food and food
processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food
Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing.
Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience
Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food
processing industry. A health food and health food supplement is another rapidly rising segment
of this industry which is gaining vast popularity amongst the healthconscious.
India is one of the world’s major food producers but accounts for less than 1.5 per cent of
international food trade. This indicates vast scope for both investors and exporters. Food exports
in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food
industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year
2000. The industry has the highest number of plants approved by the US Food
Administration (FDA)outside the

and

Drug

USA

India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk
products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product
groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water,
high protein foods etc. We cover an exhaustive database of an array of suppliers, manufacturers,
exporters and importers widely dealing in sectors like the -Food Industry, Dairy processing,
Indian beverage industry etc. We also cover sectors like dairy plants, canning, bottling plants,
packaging industries, process machinery

etc.

The most promising sub-sectors includes -Soft-drink bottling, Confectionery manufacture,
Fishing, aquaculture, Grain-milling and grain-based products, Meat and poultry processing,
Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals,
Food additives, flavors etc.

This section analyses the performance of the Indian food processing industry. Currently,
processed food accounts for merely 2% of total food production in India, which is very low as
compared to the western countries. Taking market forces such as rising income level and
changing consumer behavior due to rapid economic growth into consideration, it is expected to
reach a growth rate of 10% in 2010 & 25% in 2020. In food processing sector, dairy products
(includes milk, Ethnic sweets etc) and packed food provides immense opportunities for
investment.
 Currently, the Indian food processing industry is basically export oriented. Although
domestic consumption of processed food is low but it is fast picking up with rising income
levels & changing consumer behavior due to economic growth.
 Indian processed food industry provides competitive advantages over other countries due
to cheap workforce, government initiatives (tax holidays) & availability of raw materials.
Existence of untapped large consumer base with rising income levels.
 Indian food processing level as compared to countries like USA, France &
Malaysia continues to remain very low. However, with the emerging positive market forces,
it is all

set to boom.

During the period 2006-07, the Indian food processing industry witnessed growth from 7% to
13.1%. As a result it is hailed as the ‘sunshine industry’ in India. The food processing industry
has emerged as one of the major driver of economic growth and is expected to continue in future.
Growing economy, surplus food and a shift in the consumption pattern, from cereals to more
varied and nutritious diet of fruit and vegetables, milk, fish, meat and poultry products has been
the key factors behind the growth of the sector. At present, the industry is seeking for
investments to create necessary infrastructure, state-of-the-art-technology and expand production
facilities to match the international quality and standards. Additionally, Indian Government’s
proactive measures like de-licensing of the sector, several duty and tax relief, financial assistance
for infrastructure building and setting up of food processing units is expected to benefit the
sector.

SOME OF THE MAJOR FOOD PROCESSING COMPANIES IN INDIA:

1.

DABUR FOODS LTD. – DABUR Foods is a part of ten DABUR group.DABUR India Limited is the
fourth largest FMCG Company in India with Market Capitalisation of Rs.16,000 crores. Dabur
operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home
Care & Foods. For the past 125 years, the company has been dedicated to providing nature-based
solutions for a healthy and holistic lifestyle. They touch the lives of consumers, in all age groups,
across all social boundaries. Its processed foods includes fruit juices -with the brand names of Real,
Burrst & Activ, spices paste – Hommade, sauces – Capsico & refreshment drinks – Lemoneez. It
earned a revenue of Rs.900 crores & a net profit margin of 14% in Dec’10.
2.
GODREJ BEVERAGES & FOODS LTD. – With Rs. 11,000 crores as the market capitalisation, the
company is largest marketers of toilet soaps in the country and are also leaders in hair colours and
household insecticides. The revenues generated by the company was Rs.350 crores in 2010 with net
profit margin of 18%. The major brands are Good knight, Cinthol, Godrej No. 1, Expert, Hit, Jet,
Fairglow, Ezee, Protekt and Snuggy are household names across the country. Godrej Hershey (GHL)
operates in Food and Beverages space. Formed in 2007, a Joint Venture (JV) between The Hershey
Company (USA) and Godrej Group, GHL operates in multiple categories such as confectionery,
beverages, and grocery items. In its portfolio, GHL has brands like Hershey, Mahalacto, Nutrine,
Jumpin & Sofit. Nutrine Confectionery company, forms a key portfolio for Godrej Hershey today. The
Nutrine portfolio has products like Maha Lacto, Maha Choco, Nutrine Eclairs, Nutrine Lollipop,
Nutrine Santra Goli, Aasay, Kokanaka and Honeyfab in the hard candy, éclairs, toffee, lollipop and roll
formats. The Beverage portfolio consists of Jumpin (Fruit Drinks), Xs (Juices and Nectars) and Sofit
(Soya Milk). Sofit is the market leader in the niche but fast growing soyamilk market.
3.
GUJARAT COOPERATIVE MILK MARKETING FEDERATION (AMUL) – is India’s largest food
products marketing organisation with annual turnover (2010-11) US$ 2.2 billion. GCMMF is the cooperative organisation that manages AMUL. Amul is the largest food brand in India. AMUL is a dairy
co-operative in India since 1946. The GCMMF is jointly owned by millions of milk producers on
Gujarat. AMUL has made India the largest producer of milk and milk products in the world. It is also
the world’s biggest vegetarian cheese brand. It is also the world’s Largest Pouched Milk Brand. The
farmers of Gujarat own the largest dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which
can handle 2.5 million litres of milk per day. It has also entered into ice-creams & pizzas market. The
product range includes bread spreads – AMUL butter, AMUL lite, Margarine; cheese range – cheddar
cheese, processed cheese etc.;fresh milk from full cream to slim n trim(double toned milk); milk
powders including Amulya dairy whiteners, infant milk food; Milk drink – Kool Flavoured Milk, Amul
Kool Cafe, Koko, Chocolate Milk,Nutramul Energy Drink; Curd Products like Masti Dahi, Spiced
Butter Milk,Amul Lassee, Amul Flaavyo Yoghurt; Pure Ghee- Amul & Sagar Pure Ghee; Sweetened
Condensed Milk- AMUL Mithaimate; Mithaee Range – AMUL Shrikhand, Amul Mithaee
Gulabjamuns, Amul Basundi,Avsar Ladoos; Ice-cream- Sundae Range, probiotic,sugarfree; Chocolate
& Confectionery – Amul Milk Chocolate, Fruit & Nut Chocolate, Chocozoo, Bindass & Fundoo.
4.
HINDUSTAN UNILEVER LTD. – With a market capitalization of Rs. 61,000 crores, the Company
is a part of the everyday life of millions of consumers across India. The company has categorised
business segments like soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics,
tea, coffee, packaged foods, ice cream, and water purifiers.HUL is one of India’s leading food
companies. The major food brands & their products are Annapurna – wheat flour, Brooke Bond Taaza
– tea, Red Label – tea, Bru – coffee, Kissan – tomato ketchup, Knorr – soups, Kwality Walls – ice
creams, Lipton – tea,Modern – bread. The company earned revenues of Rs. 5,000 crores with a net
profit margin 12%. Its parent company is Unilever, which holds about 52 % of the equity. Its portfolio
includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely,
Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe and Pureit.
5.
ITC – With a market capitalization of Rs.137,000 crores, ITC is one of India’s foremost private
sector companies. While ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its

6.

7.

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9.

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nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery. ITC is one of the country’s biggest foreign exchange earners (US $ 3.2 billion in the last
decade).ITC made its entry into the branded & packaged Foods business in August 2001 with the
launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with
brand launches in the Confectionery, Staples and Snack Foods segments. The major food brands are
Sunfeast, Aashirvad, Bingo, Candyman, Mint-o.
BRITANNIA – Britannia strode into the 21st Century as one of India’s biggest brands and the preeminent food brand of the country. In 2002, it entered into a joint venture with Fonterra, the world’s
second largest Dairy Company, to form Britannia New Zealand Foods Pvt. Ltd. The food range
includes Biscuits, Dairy products like cheese, daily bread. Britannia Biscuits are the most used
products by its consumers, so much so that for the first time in India the company introduced
Britannia NutriChoice ‘Diabetic Friendly’ Essentials specially designed for people with diabetes &
Nutrichoice Digestive Biscuit which has added fibre to help in digestion. The company’s factories have
an annual capacity of 433,000 tonnes. Some of the well known biscuit brand names are
VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good
Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more.
KOHINOOR FOODS LTD. – Today, in India and in over 60 countries, consumer’s lives have been
touched by not only some of the finest basmati rice brands, but also a wide assortment of food
products that includes Basmati Rice, Ready to Eat products, Cook-in Sauces and Cooking Pastes to
Spices, Seasonings and Frozen Food. It’s a feat that Kohinoor Foods Ltd. pulled off by spreading the
authentic India flavour abroad. more than 200 thousand retail outlets, 100 super distributors and 600
stockists.
MOTHER DAIRY – is now a wholly owned company of the National Dairy Development Board
(NDDB). It was set up in 1974 under the Operation Flood Programme. Mother Dairy is a leading name
in milk & dairy products like Milk, Dahi, Ice creams, Cheese and Butter, Dhara range of edible oils and
the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices. It has a wide network for
sales and distribution for the marketing of its food items. Mother Dairy sources the major part of its
requirement of liquid milk & fruits & vegetables from dairy cooperatives & farmers.
Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai,
Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in Delhi, where it sells
around 2.3 million liters of milk daily.Mother Dairy ice creams launched in the year 1995 have shown
continuous growth over the years and had a Market share of 62% in Delhi and NCR. Mother Dairy also
manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese,
UHT Milk, Lassi & Flavored Milk and most of these products are available across the country.
NESTLE INDIA- Nestle India is a subsidiary of Nestle S.A. of Switzerland. With a market cap of
Rs.35,000 crores it operates with seven factories and a large number of co-packers. Its food business
can be broadly divided into four segments Milk products & nutrition, beverages, prepared dishes &
cooking aids, chocolates & confectionery. It specialises in infant food, while the other products in this
range are Nestle milk, milkmaid, ghee, dahi & dairy whitener. It also has a diversified product chain
like prepared dishes & cooking aids – the major one being Maggi, others are sauces, pasta, beverages
like coffee & iced and instant tea. Nestle is also known for its chocolate & confectionery range the
major brands being Kitkat, polo & bar-one. The sale is not only limited to India but also abroad. The
company marked a steady growth in 2010 with Rs. 1,000 crores as revenues & a net profit margin of
15%.
PEPSICO INDIA – is one of the largest US multinational investors in the country with an
investment of over $1 billion. PepsiCo India provides direct and indirect employment to over 1,50,000
people across the country. The portfolio includes Quaker Oats, Tropicana juices, rehydrator Gatorade,
Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to introduce the use of healthier oils for
its snacks – Lays Potato chips, Kurkure and Cheetos. The aerated drinks brand include 7up, Pepsi,
Nimbooz, Mirinda, Mountain Dew, Slice & bottled water -Aquafina. Uncle Chips & Lehar snacks are

also a part of the Pepsico company. PepsiCo India has not only grown to become the country’s largest
food and beverage business but has also become a powerful and consistent driver of PepsiCo’s global
growth. Over the last two years, India’s beverage and foods businesses have been the largest volume
growth contributors to PepsiCo across the globe.

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