Foodsectornews.com - Food-Processing Will Be The New Venture of Adani Group

Food-Processing Will Be The New Venture of Adani Group

Wednesday, 20 June 2007

Owing to economic growth and rise in demand of readymade and easy to cook food, Adani group has also decided to diversify their business and venture into food processing trade.

Adani group is planning to diversify their business and venture into food processing business. The group will soon start processing of fruits. Initial offering made by them in this business would be fruit juice and they will distribute them in 35 cities of India and overseas under the brand Farmpik, according to news published on NDTV Profit

"This is going to be an integrated supply-chain suited for different horticulture products that we pick up. We have started with fruits because of maximum scope for value-addition, we are also getting into vegetables at the local level and will eventually go for the processed products,” stated Ravindra Jain, President, Adani Agrifresh Ltd, in news published on NDTV Profit

Artificial food manufacturers in India are expecting growth that will be dependent on factors like economic boom, changing lifestyle-supporting use of readymade foodstuff, enormous market size, increased per capita income and disposable income. The food industry is fast spreading as the demand for ready to cook and ready to eat food is sprawling. Companies recognizing this sector as profitable business opportunity have started aggressive campaigning and affordable prices to attract and tap these customers and grow their market share.

Moreover, to further drive the growth of food industry in positive direction, the factors like reduced technology cost, brand building exercise because of brand conscious customer and multinational firms entering in Indian food market have come into play. Regional market players targeting regions where barriers to entry are low and a rise in the demand for FMCG (Fast Moving Consumer Goods) are all contributing to upward growth of industry.

Assessment is that demand for processed food will be there at all price points, from low end to high end goods considering income distribution of population.

According to RNCOS’ “Indian Food Processing (2006)” report, “GDP is forecasted to be 10% by 2010 and 25% by 2020, economic boom, disposable income and changing customer requirements are expected to be pleasant side effects of this growth. Food processing segment is an alluring investment for the investors with promising returns on investment”.