Food Processing Marketing in India
Market Entry to India > Food Processing Marketing in India
About Amritt, Inc
A management consultancy firm advising American companies how to increase revenues and reduce costs by leveraging the economies of China and India.
About Us - Contact Us - Clients
Amritt in the News - Subscribe to Amritt Newsletter
Food processing covers a spectrum of products from a subsector comprising agriculture, horticulture, plantations, animal husbandry and fisheries. Essentially, the food industry involves the commercial movement of food from farm to fork.
India is one of the world’s largest producers as well as consumers of food products, and this sector plays an important role in the Indian economy with food constituting about 30% of the consumer wallet. With a vast consumer base that is growing and with a strong base for food production, the sector presents a good opportunity for all players. If we look at the food sector, there are some clear opportunities for growth in the future.
- There has been an increase in per capita consumption expenditure on food by 20% over the last five years.
- Growth in the size of the middle to very rich class which is projected to increase at more than 300% between 2005 and 2015. During the same period the youth population (age group 15 – 25) in India is expected to grow by 11%. This will lead to an increasing demand for food products to meet demands of convenience, variety, health and a changing palate.
- Emergence of Tier 1 and Tier 2 cities will present a key opportunity for future growth due to rising income, increased awareness and limited availability of products currently in these markets.
India is one of the largest producers of agriculture, milk and meat products. The fact that its current yield is the lowest amongst the BRIC countries presents a significant opportunity for food processing to meet the increasing demand for food. The contributors or producers can look forward to increase yield substantially through better technology and processes. This sector presents opportunities for participation amongst players in farming, infrastructure, storage and logistics to meet the demand of food products both locally as well as in international markets.
In India, the Food Processing Industry is relatively nascent and offers opportunities for Foreign Direct Investment (FDI). Food processing has been declared a priority sector. The Government has recently established Special Economic Zones with the purpose of promoting exports and attracting FDI. These SEZs do not impose duty on imports of inputs, enjoy simplified fiscal and foreign exchange procedures, and allow 100% FDI. To harness the value-creating potential of agro processing, superior market mechanisms and infrastructure are required to be created. State governments have already begun to actively enhance the creation of aggregators by encouraging companies to engage in agriculture marketing. It is believed that this may provide the basis to jumpstart private investment into cold chain and other supply chain infrastructure.
Our Services
Amritt’s go-to-market service for India helps with developing and executing roadmaps to expand your presence:
• Feasibiliy Studies & Financial Analysis
• Helping to procure license of for small-scale sector and alcoholic beverages
• Facilitating food safety management system certification process
• Negotiation with Indian counterparts
• Attracting and retaining top business development talent
• Avoiding cultural gaffes
