The food processing sector in India is of fundamental importance, holding as it does the vital link between agriculture and industry. The sector is poised for enormous growth and already contributes about 12.7 percent of the country's GDP and provides nearly 60 percent of all job opportunities by directly employing around 1.6 million workers. 

The industry is the 5th largest sector in the country in terms of production, consumption, export and growth. The worth of the Indian processed foods industry was USD 91 billion in 2010 and it is growing at the rate of 13 percent per annum. By 2015, it is expected to touch USD 175.2 billion. The availability of raw materials, changing lifestyles and relaxation in regulatory policies is fuelling the growth of this industry. 

India is the highest producer of milk in the world at 90 million tonnes per annum. With an arable landmass of 184 million hectares, it is the second largest producer of fruits & vegetables (150 million tonnes per annum) and the third largest producer of food grains and fish. It has the largest livestock population as well. In addition to its large and wide-ranging raw material base, India is a huge consumer base of over one billion people. All these are positive factors that add vigour to the processed foods industry, which holds tremendous opportunities for large investments. This report is an across-the-board examination of the country’s food processing industry. It studies the market size and latest trends, and critically analyses the growth drivers that are propelling the sector, such as the entry of major international food product manufacturers who are eliminating category boundaries through product innovation. It also reviews the key players of this industry – Amul and Mother Diary – within the parameters of key growth factors, thereby indicating the essential prospects of the sector. 

We pay special emphasis in the report to the support that the Government of India is lavishing on the growth of the processed foods sector. The government’s ‘Vision 2015’ has allocated an outlay of USD 20 billion for the sector, while simultaneously relaxing the regulations governing licensing and excise. Other strategic initiatives by the government include the establishment of mega food parks and cold chain facilities, including refrigerated vans, and the approval of 51 percent ownership of foreign retailers in joint ventures. All these positive measures are expected to catapult the food processing sector onto a higher growth trajectory that would almost double the country’s presence in the global food trade to 3 percent. These initiatives will also enable the industry to bring in stability in food prices, reasonable returns for farmers and other stakeholders, and create a projected 9 million jobs. 

The objective of this report is to assist diverse investors, both domestic and international, who are involved in the processed foods industry both directly and peripherally. Entrepreneurs across the entire food value chain from warehousing to cargo handling and logistics to packaging and manufacture of food processing machinery & technology, exporters and importers of Indian processed food sector, even researchers and industry analysts may secure better understanding of this sector through this report.

The report analyses the wide and diverse spectrum of the Indian Food Processing Industry: 

• Overview of the Indian Food Processing Industry including Market size and Share 
• Segmental Analysis and Trends 
• Opportunities in Various Segments of the Industry 
• Outlook of the Industry KEY FEATURES DISCUSSED 
• Indian & Global Market Outlook 
• Growth Drivers and Trends 
• Implications of the Union Budget 2012-13 on the Industry 
• Emerging Fields and their Growth Opportunities 
• Comparative Cost Analysis 
• SWOT Analysis 
• Key Investments and M&A activities in Various Segments 
• Major Players

• Comprehensive Outlook of the Industry
• Detailed Analysis of all the Segments and their Opportunities
• Better Understanding of the Market vis-à-vis Market Prospects 
• Better Positioning of Products and Services

• International and Domestic Players 
• Exporters and Importers of Indian Processed Foods 
• Investors 
• Retailers of Processed Food Products 
• Entrepreneurs across the entire Value Chain from Warehousing to Cargo Handling and Logistics to Packaging 
• Government Entities 
• Educational Institutions 
• Food Processing Equipment Makers 
• Commercial and Investment Banks 
• Individuals who Track the Industry’s Progress 
• Researchers and Industry Analysts

2.1. Global Perspective 

2.2. Indian Perspective 

3.1 Current Scenario 

3.2. Market size and Trends 

3.3. Growth Drivers 

3.4. Critical Success Factors 

4.1. Fruits & Vegetables 

4.2. Marine Products 

4.3. Meat, Poultry & Eggs 

4.4. Dairy Products 

4.5. Bakery 

4.6 Confectionary 

4.7. Spices 

6.1. Export 

6.1.1 Segment-wise Export 

6.2. Import 

6.2.1 Segment-wise Import 

6.2.2 Import of Equipment 

8.1 Ware Housing 

8.2 Cold Storage 

8.3 Transportation 

8.4 Packaging 

11.1. Foreign Direct Investment (FDI) Policy 

11.2. Exim Policy 

11.3. Others 

11.3.1 Food Safety 

11.3.2 Licensing 

11.4. Initiatives

11.4. 1. Food Parks 

11.4.2. Spice Park 

11.4.3. Initiative for Cold Chains 

13.1 Domestic Investment 

13.2 FDIs 

13.3 Mergers & Acquisitions 

Table1- Processed food as a percentage of GDP-2010

Table2- Segment-wise Processed Food Products

Table3- Level of Processing (Percentage) -2010

Table4- Contribution to GDP of Food Processing Industry (USD Billion)

Table5- Percentage of Losses estimated for Agricultural Produce

Table6- Level of Processing of Perishable Produce

Table 7- Key Players in Biscuit Industry

Table 8- Segment wise Export

Table9- Segment wise Import

Table10- Import of Equipments in USD Million

Table11- Sector wise Distribution of Cold Storage

Table12- Benefit of Using Cold Storage

Table13- Logistical Bottlenecks in India- 2010

Table14- SWOT Analysis

Table15- Location and Status of Spice Parks

Table16- Various Schemes & Assistance by Government for Cold Chain

Table 17- Food Processing Sector Cost Comparison

Table18- Merger and Acquisition

Table19- Snapshot of Indian Food Processing Industry

Table20- Industry and its CAGR

Table21- Financials of Britannia

Table22- Financials of Nestle

Chart1- Food and Beverage Demand by Product Category -2009

Chart2- Processed food export- Global-2010

Chart3- Percentage of Processed food in Country wise Total Manufacturing- 2010

Chart4- Indian Food Processing Industry 2008-2011

Chart5- Share of Processing Food Category in India

Chart6- Outlook - Indian Food Processing Industry (2011-2015)

Chart7- Aggregate Middle class Disposable Income at 5 year intervals

Chart8- Market Structure-Biscuit Industry

Chart9- Activities of Warehouses

Chart10- Break up of Cold Storage Units in India- 2010