India is the second largest producer of food in the
world after China. India is the largest producer of cereals and milk and
the second largest producer of rice, wheat, fish, vegetables etc. But
even then, India contributes only 1.5 % of international food trade. So
you can understand about the opportunities of investment in this sector.
India's food processing sector covers a wide range of food items such as
fruits, vegetables, milk and its products, beverages, fisheries grain
processing etc. In Indian economy, the food processing industry ranks
5th in size and contributes 6.3% in the GDP. The government of India has
also taken positive steps to increase India's share in the international
food trade. The government is going to invest nearly $ 25 billion, to
increase India's food share to 3%. Currently the food processing
industry is growing at a rate of 7% annually.
International and Domestic Companies in the Indian Food Processing
Sector
Indian food processing sector has the presence of major multinational
giants such as Coca - Cola, Pepsi, Britannia, Walls, Nestle, Cadbury
etc. Many of the Indian brands are also going abroad such as Cobra Beer,
Bikanervala Foods, MTR Foods' ready-to-eat food stuff, ITC's Kitchens of
India and Satnam Overseas' Basmati rice.
Domestic food producers in India are shining abroad by acquiring
companies of abroad. For example Tata tea has acquired Polish Tea brands
of Vitax and Flosana from Premium Foods. The fast pace life has also
raised the demand for ready to eat food. Some of the ready to eat food
companies are Amul, Kohinoor, ITC Foods, MTR foods, Tasty Bite etc.
Steps to Boost Food Processing Sector
The various positive steps taken by the government is going to be
helpful to boost this sector. Some of such measures are:
