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11
Food Processing
For updated information, please visit www.ibef.org
MARCH
2013
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22
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Operation Flood, Amul
Opportunities
Useful information
For updated information, please visit www.ibef.org
Food ProcessingMARCH
2013
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33
Food Processing
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
MARCH
2013
Advantage
India
Demand growth for processed foodhas been rising with growingdisposable income, urbanisation, ayoung population and nuclear families
Household consumption is set to
double by 2020
India benefits from a largeagriculture sector, abundantlivestock, and costcompetitiveness
Investment opportunities will
arise in agriculture, foodinfrastructure, and contractfarming
Government expects USD21.9 billionof investments in food processinginfrastructure by 2015
Investments, including FDI, will risewith strengthening demand andsupply fundamentals
Sops to private sector participation;100 per cent FDI under automaticroute
Agri Export Zones have been set up;under the governments Vision 2015plan, mega food parks to beestablished
Approval of National Mission on FoodProcessing
Domestic
food
spending:
USD318
billion
2020E
Domestic
food
spending:
USD181 billion
2009
Notes: 2020E - Estimate for 2020; estimates are from
Flavours of Incredible India (Ernst & Young, 2009)
FDI - Foreign Direct Investment
Strong demand growth Food processing hub
Increasing investments Policy support
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44
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Operation Flood, Amul
Opportunities
Useful information
For updated information, please visit www.ibef.org
Food ProcessingMARCH
2013
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55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
The food processing sector comprisessix major segments
Food Processing
Foodprocessing
Fruits and vegetables
Milk and milk products
Meat and poultr y
Marine products
Grain processing
Consumer food
India is the worlds second largest producer of fruits and
vegetables
India is the largest producer of milk in the world
India was the largest producer of buffalo meat (1.4 MT) and thesecond largest producer of goat meat (0.5 MT) in FY10
India is the third largest producer of fish in the world
India is estimated to have produced about 250 million tonnes of
food grains in FY12
Among the fastest growing segments in India; it includes -
Packaged
food
Aerated
soft drinks
Packaged
drinking
water
Alcoholic
beverages
Source:Indiabusiness.nic.in, Ministry of Agriculture, Meat &
Poultry Processing Board, FAOSTAT
Note: FY - Indian financial year (April - March)
MT - Million Tonnes
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2013
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66For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
The food processing industry has emerged as a key
component of Indian manufacturing; while the sectors
total output stood at USD93.1 billion in FY10, it
accounted for nearly 7.5 per cent of aggregate gross
value added of major industries during that year
The size of the sector has been growing fast; output
expanded at a CAGR of 16.9 per cent over FY05-10
Processed food output
Source: Annual Survey of Industries (ASI) 2009-10,
Aranca Research
Source: Ministry of Food Processing Industries ( MOFPI),
Annual Survey of Industries 2009-10, Aranca Research
Notes: CAGR - Compound Annual Growth Rate,
Food Processing
0%
5%
10%
15%
20%
25%
30%
0
20
40
60
80
100
FY05 FY06 FY07 FY08 FY09 FY10
Processed food output (USD billion) Growth - right axis
MARCH
2013
Total output of food products andbeverages totalled USD93.1 billion in FY10
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Exports of processed food and related products*
stood at USD19.7 billion in FY11, thereby recording an
average annual growth of 14.7 per cent since FY09
Exports of APEDA products have grown to USD17.9
billion in FY12 as compared to USD11.5 bllion in FY11
Main export destinations for food products have been
the Middle East and South East Asia
Exports of processed food and related items(USD billion)
Source: Agriculture & Processed food products Export
Development Authority (APEDA,) Aranca Research;
* includes APEDA products (processed fruits and vegetables,
animal products, cereals, and other processed food items) and
Non - APEDA products (oil meals, marine products, spices, sugar
and molasses, tea, coffee, etc.)
Food Processing
6.7 6.28.2
8.37.4
11.5
FY09 FY10 FY11
Export of APEDA products Export of Non APEDA products
MARCH
2013
Exports of processed food and relatedproducts has also been rising steadily
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99For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
In FY11, APEDA products had 41.6 per cent share in total exports; non-APEDA products made up the rest
Within APEDA products, cereals had the highest share (36 per cent) while for non-APEDA products marine
products dominated with a share of about 21 per cent
Food Processing
Shares in non-APEDA exports (FY11)
Source:APEDA, Aranca Research
Shares in APEDA exports (FY12)
Source:APEDA, Aranca Research
21%
20%
20%
14%
11%
14%
Marine Products
Sugar &
Mollasses
Oil Meals
Spices
Tea & Coffee
Others
36%
17%5%
35%
6%
1%Cereals
Animal products
Processed Fruits &
Vegetables
Other processed
foods
Fresh Fruits &
Vegetables
Floriculture &
Seeds
MARCH
2013
Shares in exports of processed food andrelated products
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1010For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
The unorganised sector accounts for 42 per cent of
Indiasfood processing industry
The sizeable presence of small scale industries points
to the sectorsrole in employment generation
Unorganised sector has the largest share in the sector *
Source: Ministry of Food Processing Industries, Aranca Research
* The figures have been taken from MOFPIs annual report for
FY10 where FY indicates Indian financial year (April - March)
Food Processing
42%
25%
33%
Unorganised sector
Organised sector
Small scale
industries
MARCH
2013
Large presence of the unorganisedsector (1/2)
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1111For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Rice mills account for the largest share of processing
units in the organised sector
The governments focus on infrastructure is likely to
see a sharp rise in the number of cold storage units in
the years ahead
Shares in production by value and volume (FY11)
Source: Ministry of Food Processing Industries,
Aranca Research
Food Processing
70%
50%
30%
50%
By Volume By Value
Unorganised sector Organised sector
MARCH
2013
Large presence of the unorganisedsector (2/2)
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1212For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
In FY09, the sector employed 48 million people
Policymakers have identified the food processing
sector as a key one in encouraging labour movement
from agriculture to manufacturing
Healthy contribution to employment generation(FY09)
Source: Ministry of Food Processing Industries,
Aranca Research
Notes: FY - Indian financial year (April - March)
Food Processing
Food processing
industry
Directemployment
(13 million)
Indirectemployment
(35 million)
MARCH
2013
Food processing is a key contributor toemployment generation in India
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1313For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Changing consumer
tastes
Entry of international
companies
Liberalisation and growth of organised retail have made the Indian market
more attractive for global players
With a large agriculture sector, abundant livestock, and cost competitiveness
India is fast emerging as a sourcing hub of processed food
Rising business and
product innovation
Companies have been moving up the value chain; for example, cooperatives aretransitioning from being pure producers of milk to offering a wide range of
dairy products
Firms, both domestic and global, have been focussing on product innovation to
cater to domestic tastes, while also introducing international flavours
Wide array of products, coupled with increasing global connectivity has led to a
change in the tastes and preference of domestic consumers
This trend has been bolstered by rising incomes, increasing urbanisation, a
young population, and the emergence of nuclear families
Food ProcessingMARCH
2013
Notable trends in the Indian foodprocessing sector
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1414For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Food Processing
Alcoholic beverages
Aerated soft drinks andpackaged drinking water
Packaged food
Fruits, vegetables,processed grain
Cooperative societies: Gujarat (GCMMF), Andhra Pradesh (APDDCF), Karnataka (KMF),
Maharashtra (Mahasangh), Punjab (MILKFED), Tamil Nadu (TCMPF), Delhi (NDDB)Milk and milk products
Meat, poultry and marineproducts
Consumer food
MARCH
2013
Cooperatives dominate dairy sector;private players lead others
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1515
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Operation Flood, Amul
Opportunities
Useful information
For updated information, please visit www.ibef.org
Food ProcessingMARCH
2013
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1616For updated information, please visit www.ibef.org GROWTH DRIVERS
Strong
government
support
Growing demandStrong domestic demand Supply-side advantagesRising export
opportunities
Rising disposable
incomes
Growing middle
class,
urbanisation, a
young population
Changing
lifestyles and food
habits
Indias greaterintegration with the
global economy
Proximity to keyexport
destinations
Expected spike in
global demand as
emerging markets
grow at a fast pace
Favourableclimate for
agriculture; wide
variety of crops
Large livestock baseaids dairy and meat
processing sector
Inland water
bodies, long
coastline help
marine products
Food Processing
Policy support
Vision 2015 plantargets trebling of
food processing
sector
Mega food parks,Agri Export Zonesto attract FDI andaid infrastructure
Approval of
National Mission
on Food Processing
MARCH
2013
Strong fundamentals and policy supportaiding growth
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1717For updated information, please visit www.ibef.org
Source:, Aranca Research
Note: E - estimate, F - forecast
GROWTH DRIVERS
Rising disposable incomes
Strong growth in per-capita income has resulted in greaterdemand for food items
Per capita income is expected to expand at a CAGR of 8.5
per cent over 2010-2017 to USD2,428 There has also been a shift in demand -
From carbohydrates to meat products (in line with
the various phases of economic growth)
To convenience foods, organic and diet foods
Food Processing
Rising per-capita income in India
-5%
0%
5%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
2,500
3,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011E
2012F
2013F
2014F
2015F
2016F
2017F
Per capita income, USD, LHS Annual growth rate, RHS
MARCH
2013
Income growth is a key driver of growingdomestic demand for processed food
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1818For updated information, please visit www.ibef.org
Source: McKinsey Quarterly, Aranca Research
GROWTH DRIVERS
Food Processing
Strivers: annualincome
INR500,000 -
1,000,000
Seekers: annual
income
INR200,000 -
500,000
Deprived
annual income
INR1,000,000
0
10
20
30
40
50
60
70
2005 2010 2015 2020 2025
million
households
Strivers Seekers Deprived Aspirers Globals
Changing wealth dynamics of Indias population
MARCH
2013
A growing middle class and urbanisationhas also aided growth in the sector
Growing middle class, urbanisation
Strong economic growth since the 1990s has led to -
Rapid urbanisation and a growing middle class
Nuclear families and dual income households
Coupled with a young population and increasing mediapenetration, this has led to a surge in demand for packaged
food, alcoholic and non-alcoholic beverages, snacks,
savouries, etc
MARCH
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1919
-4
0
4
8
12
16
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Emerging & developing economies Central & Eastern Europe
Developing Asia Latin America & the Caribbean
Middle East & North Africa
For updated information, please visit www.ibef.org
Source: IMF WEO (April 2012), Aranca Research
GROWTH DRIVERS
Food Processing
%
Growth in key regions of the global economy
MARCH
2013
Exporters gaining from rising globaldemand and location advantages (1/2)
Rising demand from rest of the word
Share of exports in total output of processed food stood at21.2 per cent in FY11
This has primarily resulted from - Greater exports to advanced economies
More demand from emerging/ developingeconomies as they experience strong growth
MARCH
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2020For updated information, please visit www.ibef.org
Source: Ministry of Food Processing Industries,
Aranca Research
GROWTH DRIVERS
Food Processing
Top ten destination countries of Indias exports ofprocessed food and agriculture related products
(in USD million)
298338
401 464 502
591650 672
9671,079
Pakistan
Kuwait
Ind
onesia
Vietnam
Iran
Bang
ladesh
Malaysia
United
States
Saudi
Arabia
UAE
MARCH
2013
Exporters gaining from rising globaldemand and location advantages (2/2)
Supply-side advantages
Growth in food product exports has been aided by -
Significant improvements in product and packaging
quality
Greater private sector participation India has a location advantage - it is geographically close to
key export destinations (Middle East, South East Asia)
United Arab Emirates was the top export destination of
processed food and agriculture related products, followed
by Saudi Arabia and the United States
MARCH
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2121For updated information, please visit www.ibef.org GROWTH DRIVERS
Food Processing
Indias comparative advantage lies in its favourable
climate, large agriculture sector and livestock base,
long coastline, and inland water resources
India also has an edge in cost of production
compared to its competitors in Asia and thedeveloped world
Units Global rank
Arable land (million hectares) 157.9 2*
Area under Irrigation (million
hectares)63.1 1*
Coast line ('000 kilometers) 7 18#
Cattle (million) 210.2 1**
Source: World bank, FAOSTAT, CIA World Fact book,
Aranca Research
Notes: * - for the year 2009; # - for the year 2011, ** - for the year 2010
Production(million tonnes)
Global rank(2011)
Milk (Cow &
Buffalo)107.2 1
Pulses (nes) 7 1
Fruits (fresh, nes) 7.6 1
Bananas 29.6 1
Tea 0.96 2
Rice (Paddy) 155.7 2
Sugarcane 342.3 2
Vegetables (fresh,nes)
27.5 2
Wheat 86.8 2
Potatoes 42.3 2
MARCH
2013
India has a distinct competitiveadvantage over peers
MARCH
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2222For updated information, please visit www.ibef.org GROWTH DRIVERS
Notes: FDI - Foreign Direct Investment
Food Processing
100 per cent FDI under automatic route (except for alcohol, beer, and sectors
reserved for small scale industries)
Repatriation of capital and profits permitted
Encouragement to
private sector
Tax incentives and
other sops
Import duty scrapped on capital goods and raw materials for 100 per cent export
- oriented units
100 per cent tax exemption for 5 years followed by 25 per cent tax exemption
for the next 5 years for new agro-processing industries
Full excise duty exemption for goods that are used in installation of cold storage
facilities
Relaxed FDI norms
100 per cent export-oriented units are allowed to sell up to 50 per cent of their
produce in the domestic market
Export earnings are exempted from corporate taxes
MARCH
2013
Strong policy support gives foodprocessing sector a boost (1/2)
MARCH
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2323For updated information, please visit www.ibef.org GROWTH DRIVERS
Food Processing
Assigned priority sector for bank credit
60 Agri Export Zones (AEZ) have been set up across the country
According to Vision 2015, formulated by MoFPI, the government plans to
establish 30 mega food parks in public-private partnership mode across the
country; out of these 10 have already been approved in the first phase
Government has also announced setting up of 15 Mega Food Parks in its FY12
Budget, as part of the third phase of Mega Food Park Scheme
Focus on infrastructure
Investment-linked tax incentive of 100 per cent deduction of capital expenditure
for setting up and operating cold chain facilities (for specified products), and for
setting up and operating warehousing facilities (for storage of agricultural
produce)
Incentives for
development of
storage facilities
Notes: MoFPI - Ministry of food processing industry
MARCH
2013
Strong policy support gives foodprocessing sector a boost (2/2)
F d P iMARCH
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2424For updated information, please visit www.ibef.org
Agri Export Zones in India
GROWTH DRIVERS
Food Processing
Andhra Pradesh: vegetables,mango pulp, grapes, gherkins
Maharashtra: Grapes, grape
wine, mangoes, flowers, onion
West Bengal: Pineapple, litchi,
Darjeeling tea, vegetables
Uttar Pradesh: Basmati rice,
potatoes, mangoes, vegetables
Uttaranchal: Basmati rice,
aromatic and medicinal plants
Madhya Pradesh: Onions,
garlic, seed spices, lentils
Karnataka: Gherkins, rose,
onions, flowers, vanilla
Tamil Nadu: Flowers, mangoes,
cashew nuts
Jammu & Kashmir: Apples,
walnuts
Punjab: Basmati rice, vegetables
Himachal Pradesh: Apples
Rajasthan: Coriander, cumin
Gujarat: Mangoes, vegetables,
sesame seeds
Assam: Ginger
Source: APEDA, Aranca Research
20
8
6
5
5
4
4
44
Maharashtra
West Bengal
Andhra Pradesh
Madhya Pradesh
Karnataka
Uttaranchal
Uttar Pradesh
Tamil Nadu
Other States
MARCH
2013
F d P iMARCH
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2525For updated information, please visit www.ibef.org
FDI inflows into agriculture and food processing
between April 2000 and August 2012 stood at USD4.7
billion
Demand growth, supply advantages, and policy
support have been instrumental in att racting FDI
GROWTH DRIVERS
Food Processing
Notes: FDI - Foreign Direct Investment,
Cumulative FDI inflows (Apr 2000 - Aug 2012)into the food and agriculture sector
Source: Department of Industrial Policy & Promotion,
Aranca Research
0
200
400
600
800
1,000
1,200
1,400
1,600
Agriservices
Foodprocessing
Fermentation
Vegetableoil
Agrimac
hinery
Teaand
Coffee
Sugar
0%
10%
20%
30%
40%
Cumulative FDI inflow (USD million)
Share of total FDI inflow (%) - right axis
MARCH
2013
Foreign investments flowing in; rise inplan expenditure (1/2)
F d P iMARCH
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2626
36.3%
45.4%
11.5%
5.5%
1.3% Infrastructure
development
National Mission on
Food Processing
Strengthening of
institutions
Food Safety, R&D and
Promotional Activities
Innovation FundScheme
For updated information, please visit www.ibef.org
The governments main focus is on supply-chain
related infrastructure like cold storage, abattoirs and
food parks
GROWTH DRIVERS
Food Processing
12th Five Year Plan (2012-17) outlay shares:food processing
Source: Ministry of Food Processing Industries (2009-10
Annual Report), Aranca Research
Notes: GOI - Government of India
Plan allocation to the food processing sector:USD2.9 billion
MARCH
2013
Foreign investments flowing in; rise inplan expenditure (2/2)
F d P iMARCH
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2727For updated information, please visit www.ibef.org GROWTH DRIVERS
PE investments in the food and agriculture totaled USD650 million during 2008-11
Company Investor Type of businessDeal value (USD
million)
Nuziveedu Seeds Blackstone Group Floriculture 80.0
Prakash Snacks Pvt Ltd Sequoia Capital Snacks 30.0
Amalgamated Beans Coffee Trading Co Darby Asia InvestorsNon-citrous fruitfarming
25.0
Bush Foods Overseas Pvt Ltd Standard Chartered Pvt Eq Ltd Rice milling 25.0
Tirumala Milk Products Carlyle Group Milk production 22.0
The CREMICA Group Motilal Oswal Private Equity AdvisorsGeneral food
products15.0
Nashik Vinters Verlinvest SA Wine and liquor 15.0
Parag Milk & Milk Products Motilal Oswal Private Equity Advisors Dairy products 14.1
Godrej Tea IL&FS Investment Managers Coffee Coffee and tea 13.5
Bakers Circle India Pvt. LtdGEM India Advisors Ltd
Frozen doughs
and desserts2.82
Food Processing
PEdeals
Jan2010-Nov2012
MARCH
2013
Rising Private Equity (PE) funding;M&A activity stable (1/2)
F d P iMARCH
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2828For updated information, please visit www.ibef.org GROWTH DRIVERS
Source: Thompson One Banker, Aranca Research
Notes: M&A - Mergers and Acquisitions
Food Processing
M&A activity was steady in 2011
Target company Acquirer company Type of businessDeal value
(USD million)
United Spirits Ltd Relay BV Liquor 2,045
GMR Industries Ltd EID Parry Sugar 114.8
Jay Mahesh Sugar Industries NSL Sugars Ltd Sugar 51.99
Eastern Condiments McCormick & Co Seasonings, sauces 35.0
Krishidhan Seeds Summit Partners Agricultural seeds 30.0
Bajaj Hindustan Sugar & Ind Bajaj Hindusthan Sugar, ethanol 14.1
Associated Distilleries Globus Spirits Liquor
14.0
Candico India Keventer Agro Candy items 11.2
M&Adeals
Jan2010-Nov2012
MARCH
2013
Rising Private Equity (PE) funding;M&A activity stable (2/2)
F d P iMARCH
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2929For updated information, please visit www.ibef.org
Players like McCormick had identified India as a strategic market way back in the 1990s
Global players like Hershey are now keen on entering the increasingly attractive Indian market
Established players like Nestle and Coke are extending their global JVs to India
GROWTH DRIVERS
Foreign Players Indian Partner Type of business Stake ratio Year
Dan Cake Phadnis Group Cake and biscuits 66:34 2011
McCormick Kohinoor Foods Ltd Basmati and food products 85:15 2011
McCormick Eastern Condiments Seasonings 26:74 2010
Nestle, Coca Cola -- Beverage 50:50 2010
Hershey Godrej Chocolates 51:49 2007
McCormick AVT Spices 50:50 1994
Source: Thompson ONE Banker, Aranca Research
Note: JV - Joint Venture
Food ProcessingMARCH
2013
Sector has been attracting foreign JVpartners for a long time
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3030
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Operation Flood, Amul
Opportunities
Useful information
For updated information, please visit www.ibef.org
Food ProcessingMARCH
2013
F d P iMARCH
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3131For updated information, please visit www.ibef.org SUCCESS STORIES: OPERATION FLOOD, AMUL
Food Processing
Operation Flood was initiated in 1970 by the National Dairy Development Board to achieve national self sufficiency
in milk production by creating nationwide milk grids; under Operation Flood -
Indiasmilk production rose to 127.3 million metric tonnes (mmt) in FY12 from 21.2 mmt in FY1969
India retained its position as the worlds largest milk producer in 2011-12 with an annual production of 127.3
million metric tonnes Dairy cooperatives offer employment opportunities to about 12 million farm families
Source: National Dairy Development Board, GCMMF
(www.amul.com), Aranca Research
2013
Operation Flood: India gains selfsufficiency in milk production (1/2)
F d P iMARCH
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3232For updated information, please visit www.ibef.org SUCCESS STORIES: OPERATION FLOOD, AMUL
Source: GCMMF (www.amul.com), Aranca Research
Food Processing
Dairy cooperative
societies (000)
Members (million)
Milk procurement
(million kg/ day)
Liquid milk marketing
(million litres/ day)
Milk drying capacity
(million tonnes/ day) 261
2.9
2.6
1.8
13.3
842
10.0
11.0
9.3
72.5
507.5
5.0
5.8
3.6
34.5
PHASE I
(Jul-1970 to
Mar-1981)
PHASE II
(Oct-1979 to
Mar-1985)
PHASE III
(Jul-1985 to
Mar-1996)
2013
Operation Flood: India gains selfsufficiency in milk production (2/2)
F d P iMARCH
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3333For updated information, please visit www.ibef.org SUCCESS STORIES: OPERATION FLOOD, AMUL
Source: GCMMF (www.amul.com), Aranca Research
Notes: CAGR - Compound Annual Growth Rate
FY - Indian financial year (April - March)
Food Processing
Gujarat Cooperative Milk Marketing Federation
(GCMMF) is the largest food products marketing
organisation in India
Set up in 1967, it is Indias largest exporter of dairy
products and has been accorded trading housestatus
0.5 0.6 0.6 0.6
0.80.9
1.1
1.4
1.7
2.0
2.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
GCMMF (Amul) sales (USD billion)
2013
The Amul saga: a cooperativemovement leads the way (1/2)
Food ProcessingMARCH
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3434For updated information, please visit www.ibef.org SUCCESS STORIES: OPERATION FLOOD, AMUL
Food Processing
Facts and Features
Producer members (million) 3.18
Village societies 16,117
Milk handling capacity (million litres/day) 13.67
Total milk collection (FY12, billion litres) 3.88
Daily milk collection (FY12, million litres) 10.6
Milk drying capacity (million tonnes/day) 647
Notable Awards Authority
Excellent performance in dairy product exports
for 11 consecutive yearsAPEDA
CIO International IT Excellence Award (2003)for positive business performance throughresourceful IT management and best practices
IDGs CIO
Magazine(USA)
International Dairy Federation MarketingAward (2007) for Amulspro-biotic ice cream
launch
InternationalDairy
Federation
Source: GCMMF (www.amul.com), Aranca Research
2013
The Amul saga: a cooperativemovement leads the way (2/2)
Main brand: Amul
Products: milk (including flavoured), butter, margar ine, cheese, curd, desserts, infant food
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Operation Flood, Amul
Opportunities
Useful information
For updated information, please visit www.ibef.org
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3636For updated information, please visit www.ibef.org OPPORTUNITIES
Notes: PPP - Public Private Partnership,
AEZ - Agri Export Zones
FDI - Foreign Direct Investment
Opportunities
Food Processing
Untapped market with strong
growth potential
Fragmented market leads to
lower processing levels andvalue addition
The government plans to
raise value addition to 35
per cent by 2015 (from 20
per cent in 2005)
PPP modules ideal for the
private sector
Strong demand growth -
household consumption set
to double by 2020
Potential global outsourcing
hub
Global supermarket majors
are looking at India as amajor outsourcing hub
India enjoys favourable
supply-side fundamentals
(abundant raw materials
supply, cost advantages)
The government has helped
by investing in AEZs, mega
food parks, easier credit
Supply chain infrastructure and
contract farming
Both firms and the
government are eager toboost efficiency and access
to markets
Investment potential of
USD22 billion in food
processing infrastructure;
100 per cent FDI in this area
Firms increasingly taking
recourse to contract farming
in order to secure supply
2013
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Operation Flood, Amul
Opportunities
Useful information
For updated information, please visit www.ibef.org
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2013
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3838For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry Associations
Agricultural and Processed Food Products Export Development
Authority APEDA)
NCUI Building 3, Siri Inst itutional Area,
August Kranti Marg, New Delhi - 110 016
Phone: 91-11-26513204, 26514572, 26534186
Fax: 91-1126526187
E-mail: [email protected]
Marine Products Export Development Authority MPEDA)
MPEDA House, Panampilly Avenue
PB No 4272, Cochin - 682 036
Phone: 91-484 2311979/2311803
Fax: 91-484-2313361
e-mail: [email protected], [email protected]
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Glossary
AEZ: Agri Exports Zones
MFP: Mega Food Parks
CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
MT: Million Tonnes
IIP: Index of Industrial Production
FY: Indian Financial Year (April to March)
So FY12 implies April 2011 to March 2012
GOI: Government of India
INR: Indian Rupee
PPP: It could denote two things (mentioned in the presentation accordingly) -
Purchasing Power Parity (used in calculating per-capita GDP)
Public Pr ivate Partnership (a type of joint venture between the public and private sectors) PE: Private Equity
APEDA: Agriculture & Processed food products Export Development Authority
GCMMF: Gujarat Cooperative Milk Marketing Federation
USD: US Dollar
Conversion rate used: USD1= INR48
Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
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Food Processing 2013
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