food industry

Made by:Sharad joshi abhishek

Definition
The food industry is a complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The Food Standards Agency, a government body in the UK, describes it thus: "...the whole food industry from farming and food production, packaging and distribution, to retail and catering.

 Thus the food industry is concerned with processing, preparing, preserving, distributing and serving of foods.

Indian food industry

India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The industry has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA.

strengths
Food processing industry is rising at the rate of 8% yearly. It shows the potential of the industry to grow in the future. Indian food processing Industry is the 5th largest industry in India. Industry revenue is increasing at the rate of 5% per year. Due to its diverse agro-climatic conditions, it has a wideranging and large raw material base suitable for food processing industries. Presently a very small percentage of these are processed into value added products India's comparatively cheaper workforce can be effectively utilized to setup large low cost production bases for domestic and export markets

 India has plenty of natural resources that provide it a competitive advantage in the food processing industry. Liberalized overall policy regimes, with specific incentives for high priority food processing sector, provide a very conducive environment for investments and exports in the sector.

challenges
Due to globalization threats from the MNCs is increasing day by day. The facilities that are given by the non branded local retailers will reduce the market share of our store. Technology is upgrading day by day due to which requirement of trained manpower is also increasing. Slow & Dysfunctional judiciary and corrupt law enforcers Regulation, protection and restriction for processed food

CONTRIBUTION IN GDP OF INDIA

Spending on food accounting for nearly 21% of Indias GDP and with a market size of USD181 billion. The largest portion of the Indian consumers spending more than a 31% share of wallet. From 2004 to 2008 -a compounded annual growth rate (CAGR) of 6.4%. Indian domestic food market is expected to grow by nearly 40% of the current market size by 2015, to touch USD258 billion by 2015. There are numerous hotels within a 15 minute radius, over six of the being 5 star. BEC consists of four halls occupying over 40,000 sq.mtrs of centrally air-conditioned space for conducting exhibitions.

Indian Food Industry: Key Statistics (in Rs 000' crores)

Year 2002-2003 2006-2007 2010-2011 2014-2015 Food Industry Size Food Processing Industry Size Size of organized Sector in Food Processing Industry % Share of Food Processing Industry in total Food Industry % Share of organized sector in Food Processing Industry 770 308 57 880 374 101 1100 484 162 1320 660 264

40

43

44

50

19

27

36

40

Major players
Dabur Foods Ltd. Godrej Beverages & Foods Limited Gujarat Cooperative Milk Marketing Federation (Amul) Hindustan Lever Limited ITC Ltd Kohinoor Foods Ltd (formerly Satnam Overseas Ltd) Mother dairy/ NDDB Nestle India Pepsico Holdings India Pvt. Ltd Venkys India Ltd