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Make In India - Madhya Pradesh: An Investment Destination for Food Processing
Organized by
Knowledge Partner
About Us
• Started in 2002, with the aim of providing multiple services to companies wishing to engage in any business expansion
• Provide actionable insights to companies across a range of industries such as Food, and Healthcare
• Well equipped offices in India and Dubai, also present in 20 countries and 5 cities in India through channel partners
• Dedicated team of over 35 employees and 15 freelancers, with rich industry experience and domain expertise
Services
Strategic Consulting
• In-Depth Market Assessment
• Market Entry Strategies
• Concept & Product Testing
• Existing Business Optimization
• Strategic Advisory
India : Food Processing Industry
2012 2015e 2020f
6,637
11,640
16,500
India - Food Processing Industry (INR Bil-lion)
CAGR - 12%
Source: ICAR, RNCOSNote: e = ICAR Estimates, f = RNCOS ForecastExchange Rates: 2012: US$ 1 = INR 54.85; 2015 & 2020: US$ 1 = INR 60.00
• India is the world’s second largest food producer
• Food production in India is likely to double in the next 10 years
• Share of unorganized sector will decline to 70% by 2020
• Organized sector occupies 25% of the market, and is expected to grow with a CAGR of 16% during 2014-2020
Dairy Products33%
Grains & Pulses10%
Convenience Foods10%
Fruits & Vegetables5%
Others42%
Food Processing Market Segmentation (2014)
Source: RNCOSNote: Others include alcoholic beverages, meat and poultry
Industry Drivers
Abundant resources to support the flourishing food processing industry
Increasing interest for ready-to-eat food products among young generation and working class
Consumers ready to experiment with unique processed food offerings.
Government focus - setting-up food parks, mega food parks, cold chains, etc. for food processing industry
• Food Processing Industry (FPI) forms 32%1 of Madhya Pradesh Industrial Output
• The Gross State Domestic Product (GSDP) from agriculture & allied activities has registered a growth of over 18%2 during FY2012 to FY2014
• Majority of food processing is at primary level i.e. wheat, grain and rice milling
• State has about 6253 Micro and small scale units operating in food processing and beverages
• State has Seven Food Parks, and One Mega Food Park to support food processing industry
• Offering various incentives and subsidies under Agro & Food Processing Policy to boost FPI
• Major business groups have committed to invest in State’s FPI during Global Investors Summit (GIS) 2014
• Future Group, ITC and Adani Group are some of the big names
Madhya Pradesh : Food Processing Industry - Salient Features
1Government of India, Annual Survey of Industries, Data Tables, Department of Horticulture and Food Processing2Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE)3MoFPI
• Madhya Pradesh is the 2nd largest state by area
• 11 agro-climatic divisions - major precursor for the growth and development of agriculture
• Fourth largest producer of Agri-produce
• More than 70% of the population involved in agricultural activities
• 15.7 Million hectares of land under cultivation
Madhya Pradesh : Agriculture Strengths
FY2011 FY2012 FY2013 FY2014
30.01
43.36
49.7646.55
Agriculture Production (Million Metric Tonnes)
CAGR - 16%
Grains & Cereals
64%
Fruits12%
Veg-etables
23%
Spices1%
Agriculture Production by Type (FY2014)
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation, National Horticulture Board
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation, National Horticulture Board
Grains & Cereals Fruits Vegetables Spices
3rd
8th
5th 5th
All India Rank in Production (FY2014)
Source: Various Industry Sources
• Major Wheat Producing Districts: Hoshangabad, Chhindwara, Sehore, Harda, Raisen and Vidisha
• Moong, Urad, Masoor, Gram, Arhar and Kabuli Chana are major Pulses
• Major Fruit Producing Districts: Indore, Ujjain and Jabalpur
• Major Vegetable Producing Districts: Ujjain, Indore, Jabalpur and Sagar
Madhya Pradesh : Agriculture Strengths
Wheat47%
Soybean18%
Pulses17%
Others18%
Grains & Cereals Production by Type (%), FY2014
Banana30%
Orange16%Guava
15%
Papaya8%
Mango7%
Aonla/Gooseberry6%
Others18%
Fruits Production by Type (%), FY2014
Onion22%
Potato18%
Tomato15%
Brinjal8%
Cauli-flower
5%
Cabbage4%
Others28%
Vegetables Production by Type (%), FY2014
Source: Directorate of Economics and Statistics, Department of Agriculture and CooperationNote: Others include Rice and Maize collectively
Source: National Horticulture Board Source: National Horticulture Board
Nimrani Food Park
• Location: Nimrani, District Khargone
• Nearest Major City: Indore
• Total Area: 27.12 hectares
• Existing Units (Majorly): Grain Milling, Rice Milling and Bakery
• Prospective Food Processing Units: Value added processing of Garlic, Onion, Tomato, Soybean, Wheat, Orange and Banana
Madhya Pradesh : Food Parks
Jaggakhedi Food Park
• Location: Jaggakhedi, District Mandsaur
• Nearest Major City: Indore
• Total Area: 20.46 hectares
• Existing Units (Majorly): Spices Milling
• Prospective Food Processing Units: Value added processing of Garlic, Tomato, Orange, Onion and Guava
Borgaon Food Park
• Location: Industrial Area Borgaon, District Chhindwara
• Nearest Major City: Nagpur (55 km)
• Total Area: 21.47 hectares
• Existing Units (Majorly): Rice Milling, Spices Milling, Baby Food, Papad, Pickles and Ketchup
• Prospective Food Processing Units: Value added processing of Soybean, Wheat, Maize, Rice, Pulses and Mango
Madhya Pradesh : Food Parks
Maneri Food Park
• Location: Maneri, District Mandla
• Nearest Major City: Jabalpur (35 km)
• Total Area: 30.35 hectares
• Existing Units (Majorly): Amla, Papad, Badi and Tomato Pulp
• Prospective Food Processing Units: Value added processing of Rice, Wheat, Soybean, Tomato, Pulses, Maize and Mango
Malanpur Food Park
• Location: Gwalior - Bhind - Etawah NH-92
• Nearest Major City: Gwalior (20 km)
• Total Area: 62 hectares
• Existing Units (Majorly): Dairy Products and Grains Milling
• Prospective Food Processing Units: Value added processing of Potato, Wheat, Pea, Garlic, Onion, and Guava
Madhya Pradesh : Food Parks
Babai-Pipariya Food Park
• Location: District Hoshangabad
• Nearest Major City: Bhopal
• Total Area: 50 hectares
• Existing Units (Majorly): Rice Milling, Pulse Milling, and Bakery
• Prospective Food Processing Units: Value added processing of Wheat, Soybean, Pulses, Orange, and Mango
Fruit Juices
• Substantial growth in packaged fruit-based beverages market in India
• Total fruit juice market in 2014 was INR 70 Billion, Organized sector had 20% market share
• Mango and orange juices are the most preferred variants
• Major Drivers: Growing awareness, Urbanization, Working population
Madhya Pradesh : Food Processing Opportunities
FY2012 FY2013 FY2014
0.65
0.840.89
0.18
0.38 0.38
Orange and Mango Production (Million Metric Tonnes)
Orange
MangoCAGR - 45%
Madhya Pradesh Status
• 26% and 2% share in India’s total orange and mango production respectively
• Very less processing (0.2% and 5.8% of oranges and mangoes production)
• Major Orange Producing Districts: Shajapur, Mandsour, Ratlam, Ujjain, Hoshangabad
• Major Mango Producing Districts: Bhopal, Umaria, Jhabua, Alirajpur, Seoni
• Food Parks around Orange and Mango Production: Jaggakhedi, Babai-Pipariya, Nimrani, Borgaon, Maneri
• Opportunities also exits for Banana Chips and Guava Juices
Source: National Horticulture Board
CAGR - 17%
Tomato Ketchup/Sauce
• India's tomato ketchup and sauce market is close to INR 10 Billion; growing at 20% YoY
• High demand both in institutional segment (Hotels, Restaurants, Fast Food Chains etc.) and Retail segment
• Major Drivers: Range of variants & packaging, Working women, Changing eating habits and Increasing disposable income
Madhya Pradesh : Food Processing Opportunities
FY2011 FY2012 FY2013 FY2014
0.29
1.35
1.851.94
Tomato Production (Million Metric Tonnes)
Madhya Pradesh Status
• 3rd highest crop produced in Madhya Pradesh
• Tremendous growth in production
• Low processing capacity in the State
• Major Tomato Producing Districts: Ratlam, Jabalpur, Bhind, Barwani, Dhar, Sagar, Chhind-wara, and Khandwa
• Food Parks around Tomato Production: Nimrani, Jaggakhedi and Maneri
Source: National Horticulture Board
CAGR - 88%
Soybean Oil
• Huge demand of Soybean oil in India
• Imports meet 60% of the demand
• Soybean oil import was 2.3 Million Metric Tonnes in FY2014, CAGR - 44% FY2012 to FY2014
• Major Drivers: Better than traditional vegetable oils (Rapeseed, Peanut, Cottonseed etc), High nutritional value (omega-3 fatty acids and polyunsaturated fats)
Madhya Pradesh : Food Processing Opportunities
FY2011 FY2012 FY2013 FY2014*
6.27 6.50
7.80
5.37
Soybean Production (Million Metric Tonnes)
Madhya Pradesh Status
• Largest producer of soybean in the country (45% share in all India soybean production)
• Production declined due to huge crop loss in rains
• Major Soybean Producing Districts: Ujjain, Dewas, Shajapur, Sehore, Mandsaur, Dhar, Chhi-ndwara, Vidisha, Indore, and Harda
• Food Parks around Soybean Production: Nimrani, Borgaon, Maneri and Babai-Pipariya
• Opportunities also exists for other soy based products like Sauce, Margarine, Cheese, and Milk
Source: Directorate of Economics and Statistics, Department of Agriculture and CooperationNote: *= Fourth Advance Estimates
Value Added Dairy Products (VADP)
• High growth in various dairy products like Cheese, Packaged Milk, Butter, Non Dairy Creamer, Instant Milk Powder, Condensed Milk and Flavored Buttermilk
• Exports of milk and dairy products presents a large opportunity (Exports CAGR – 103% during FY2010-2014)
• Higher operating margins in value-added products than liquid milk business (about 2x )
Madhya Pradesh : Food Processing Opportunities
FY2010 FY2011 FY2012 FY2013
7.17 7.518.15
8.84
Milk Production (Million Metric Tonnes)Madhya Pradesh Status
• Madhya Pradesh is the 6th largest producer of Milk
• Very negligible milk processing - 1.8% (As per NSSO)
• Major Milk Producing Districts: Morena, Ujjain, Mandsaur, Jabalpur and Indore (23.5% of States Milk Production)
• Food Parks around Milk Production: Malanpur, Jaggakhedi, Maneri, and Nimrani
Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI
CAGR - 7%
RTE/RTC
• Indian organized RTE/RTC (Noodles, Pasta, Upma, Snacks etc) market was estimated to be INR 53 Billion in FY2014
• Expected growth rate - around 22% CAGR during 2014-2020
• Wheat based products are more in demand
• Major Drivers: Changing lifestyle, Increasing adaptability (among tier-I and tier-II consumers), Modern retail chains , Marketing & promotion media
Madhya Pradesh : Food Processing Opportunities
FY2011 FY2012 FY2013 FY2014*
9.22
14.3713.13
13.93
Wheat Production (Million Metric Tonnes)Madhya Pradesh Status
• Madhya Pradesh is the 3rd largest producer of Grains
• Processing is majorly limited to primary grains milling
• Major Wheat Producing Districts: Hoshangabad, Chhindwara, Sehore, and Harda
• Food Parks around Wheat Production: All food parks
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation
CAGR - 15%
Madhya Pradesh : Capturing the Road Ahead
Creation of Food Testing Facilities
Encourage R&D for Product Development
Creation of Robust Cold Chain/Supply Chain
Network
Easy Credit Availability to MSME
Promoting Food Processing in Food Parks
Special Schemes for New Entrepreneurs
Need for Center of Excellence
Advanced & Cost Effective Process Technology
SHUSHMUL MAHESHWARICEO
RNCOSE mail: [email protected]
Website: www.rncos.comPhone: +91 120 4224700 /01 / 02/
03Address: B 129, Sector 6,
Noida, Uttar PradeshIndia - 201301
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