Food Processing – Attractive investment for Indian Startups

food processing

India is one of the key food producers in the world. Even as the industry is big in phrases of dimension, it’s although at a nascent stage in terms of progress. As per the ministry, the exact worth of cash per 12 months in India from food wastage is estimated at a whopping over Rs. 92,000 Crore. Out of the country’s whole agriculture and food produce, only 2 percent is processed and 40% will get wasted earlier than attaining the plate. FAO estimates that even if just one-fourth of the food presently misplaced or wasted globally would be saved, it might be adequate to feed 870 million hungry humans in the world.

Given the dimensions and importance of the food processing sector in India’s financial system, a few states in India are specializing in growing the sector and attracting investments. At the same time, there are a few states which are attractive to buyers due to favorable market and factor conditions. The following points provide a high-level evaluation of India’s strengths in food processing which obviously shows that there are gigantic capabilities for startups.

Strength in Food Processing

The food processing sector presents many possibilities throughout the worth chain right from the farm equipment gamers to the retail/food services sector.

Component conditions – Availability of raw substances & Human assets: India has access to a few common resources that provides it a competitive knowledge within the food processing sector. Due to its numerous agro-climatic conditions, it has a broad-ranging and enormous raw fabric base suitable for food processing industries. Additionally, India’s comparatively more cost-effective workforce can also be conveniently utilized to mounted gigantic affordable creation bases for domestic and export markets.

Demand conditions – regional Market Demand: Given the rushed and time-pressed lifestyle that men and women in city India lead, shoppers are regularly watching at healthy and appropriate options like packaged food that furnish the desired food.

Firm structure/competition – The constitution of the industry/Vertical Integration: With geared up retail penetration increasing an executive’s proposed mega food parks preventing the necessity for a middleman, Contract Farming is a possibility for the processors in order to help in better handling, price recognition and minimizing wastage.

Management support – Tax policies/Incentive: In order to promote investment within the food processing sector, a few policy initiatives had been taken during modern years. The national policy targets to increase the extent of food processing from 2 percent to 25 percent in 2025.

Supporting Industries – Institutional support: The enterprise has enormous aid from the good-developed R&D and technical capabilities of Indian corporations. India has a big number of study associations like significant food Technological study Institute, relevant Institute of Fisheries technology, etc. To aid the technology and development within the food processing sector in India.

A good-integrated supply chain and a marketing strategy method with investments in the most attractive segments and states are essential to competitiveness to success within the food processing sector.

 

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