Foodsectornews.com - Indian Food Processing Industry: Its All about Health & Wealth

Indian Food Processing Industry: Its All about Health & Wealth

Monday, 18 June 2007

The food-processing industry in India is going ahead in full pace. It's necessary to know the obstacles for this industry in showing its competency globally and also, factors that are bringing changes

As the sector offers immense growth potential, a large number of MNCs have entered India to take advantage of the opportunity. Unilever, Nestle, Pepsi and Cadbury are some of the big, successful overseas players in India that face a strife from established Indian brands.

Various plans, including low prices, combative advertising, expansion schemes, have been adopted and implemented by the companies to retain and amplify their market share in India. Fierce competition within the industry has lead to new ideas and increased capabilities in the sector. It will ease the growth maintenance task and assist it to become globally emulous.

In next 3 years, the Indian food processing industry is anticipated to grow to 3 times its current size making India a key and consequential player in the food and agriculture trade. Despite being recognized as a promising growth area, the current share of Indian food processing market in the world food trade is only 2%.

The recently published report by RNCOS, "Indian Food Processing (2006)", suggests that cheap Indian workforce can be efficaciously used to set up large, cost-effective manufacturing units for domestic and export market. According to the report, from about 90 million ton of India's milk production, almost 16% is processed in organized sector and 24% in unorganized sector.

Indian Food Processing (2006)", suggests that cheap Indian workforce can be efficaciously used to set up large, cost-effective manufacturing units for domestic and export market. According to the report, from about 90 million ton of India's milk production, almost 16% is processed in organized sector and 24% in unorganized sector.