Israel India | Business Guide | 2017

082 > Food Industry > Review Israel-India > Business Guide > 2017 India’s Growing Food Industry Collaborations with foreign players will bring faster growth and improved technology I ndia’s food industry, which is currently valued at US$ 39.71 billion, is expected to grow at a CAGR of 11% to $ 65.4 billion by 2018 mainly through JVs, foreign collaborations,industrial licenses,and 100% export-oriented units. Market Size The Indian food and grocery market is the world’s sixth largest with the Indian food processing industry contributing 32% of the country’s total food market. The Indian gourmet food market is currently valued at $ 1.3 billion, growing at a CAGR of 20 per cent.India's organic foodmarket is expected to increase three-fold by 2020. The online food ordering business is witnessing exponential growth.The organized food business in India is worth $ 48 billion,of which food delivery is valued at $ 15 billion. Online food delivery players like FoodPanda, Zomato, TinyOwl and Swiggy are building scale through partnerships. Investments CII estimates that the food processing sectors have the potential to attract $ 33 billion of investment over the next 10 years. • US-based food company Cargill Inc, aims to double its branded consumer business in India by 2020. • Danone SA plans to launch 10 newproducts in 2017. • KKR & Co LP, the US-based private equity firm, plans to invest $ 77 million in dairy company Kwality Ltd. • Henry Ford Health Systems (HFHS), a US-based health and wellness group, plans to set up 'Culinary Wellness' branded stores across the country. • Mondelez International, the US-based confectionery, food, and beverage major, inaugurated its new manufacturing plant in Andhra Pradesh set up for $ 190 million. • Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as 'Amul', plans to invest $ 733.6 million to establish ten new processing plants. Government Initiatives Some of the major initiatives taken by the Government of India to improve the food processing sector in India: • In Union Budget 2017-18,the Government of India has set up a dairy processing infra fund worth $ 1.2 billion. • Union Budget 2016-17 proposed 100% FDI inmarketing of food products produced and manufactured in India. • The Government has relaxed foreign direct investment (FDI) norms for the sector,allowing up to 100% FDI in food product e-commerce. • The Food Safety and Standards Authority of India (FSSAI) plans to invest $ 72 million to strengthen the food testing infrastructure in India. • The Government will set up agencies for aquaculture and fisheries in coastal states and export incentives for marine products. • The Government has approved the setting up of 5Mega Food Parks in Bihar,Maharashtra, Himachal Pradesh and Chhattisgarh. 42 such mega food parks across the country are planned. Road Ahead Going forward, the adoption of food safety and quality assurance mechanisms by the food processing industry offers several benefits. It would enable adherence to stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to face global competition, enhance product acceptance by overseas buyers and keep the industry technologically abreast of international best practices. Source:IBEF,Dept.of Commerce & Industry,Govt. of India Photo by: © Singhlens, Dreamstime.com