Introduction

India is the world's second largest producer of food next to China and has the potential of being the biggest, backed by its food and agricultural sector. The total food production in India is likely to double in the next 10 years with the country’s domestic food market estimated to reach US$ 258 billion by 2015.

With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast emerging as a sourcing hub for processed food. The Indian food processing industry accounts for 32 per cent of the country’s total food market.

The food industry in India has been attracting a lot of attention from foreign investors as the country is close to the markets of Middle East, Africa and South East Asia. The Ministry of Food Processing Industries (MOFPI) is making all efforts to encourage investments in the sector, incentives for cold chain development and also grant-in-aid for setting up laboratories that are equipped for testing food products.

Key Players

  • Coca-Cola plans to foray into India's dairy segment in the coming season with its milk-based drink 'Maaza Milky Delite'. The beverage made from milk and mango pulp will now be rolled across the country in 200 ml tetra packs.
  • Everest Spices plans to set up spices processing units in the East African country Zanzibar at an investment of about Rs 100 crore (US$ 16.73 million), said Mr Sanjeev Shah, Executive Director, Everest Spices. The firm has entered into a memorandum of understanding (MoU) with the Government of Zanzibar for the same.
  • Cadbury brand owner Mondelez International is investing heavily in sales and route-to-market expansion in India. The company has increased sales infrastructure with one lakh visicoolers in the market and it took big strides by expanding into rural India and reaching seven states in 2013.
  • Capri-Sun AG has entered into a franchise agreement with SDU Beverages, an Indian beverages firm that currently produces packaged water and soda under the Kingfisher brand and RC Cola.
  • Hardcastle Restaurants, master franchise for west and south India operations of McDonald's Restaurants, plans to bring its coffee retail format McCafe to India. More than 150 McCafes are expected to be set up in the next five years.