Make In India - Madhya Pradesh: An Investment Destination for Food Processing

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3. 6,637
11,640
16,500
2012 2015e 2020f
India - Food Processing Industry (INR
Billion)
Source: ICAR, RNCOS
Note: e = ICAR Estimates, f = RNCOS Forecast
Exchange Rates: 2012: US$ 1 = INR 54.85; 2015 & 2020: US$ 1 = INR 60.00
• India is the world’s second largest food producer
• Food production in India is likely to double in the next
10 years
• Share of unorganized sector will decline to 70% by
2020
• Organized sector occupies 25% of the market, and is
expected to grow with a CAGR of 16% during 2014-
2020
Dairy
Products
33%
Grains &
Pulses
10%
Convenience
Foods
10%
Fruits &
Vegetables
5%
Others
42%
Food Processing Market Segmentation
(2014)
Source: RNCOS
Note: Others include alcoholic beverages, meat and poultry
Industry Drivers
Abundant resources to support the flourishing food processing industry
Increasing interest for ready-to-eat food products among young
generation and working class
Consumers ready to experiment with unique processed food offerings.
Government focus - setting-up food parks, mega food parks, cold
chains, etc. for food processing industry

4. • Food Processing Industry (FPI) forms 32%1 of
Madhya Pradesh Industrial Output
• The Gross State Domestic Product (GSDP)
from agriculture & allied activities has
registered a growth of over 18%2 during
FY2012 to FY2014
• Majority of food processing is at primary level
i.e. wheat, grain and rice milling
• State has about 6253 Micro and small scale
units operating in food processing and
beverages
• State has Seven Food Parks, and One Mega
Food Park to support food processing industry
• Offering various incentives and subsidies under
Agro & Food Processing Policy to boost FPI
• Major business groups have committed to
invest in State’s FPI during Global Investors
Summit (GIS) 2014
• Future Group, ITC and Adani Group are some
of the big names
1Government of India, Annual Survey of Industries, Data Tables, Department of Horticulture and Food Processing
2Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE)
3MoFPI

5. • Madhya Pradesh is the 2nd largest state by area
• 11 agro-climatic divisions - major precursor for the
growth and development of agriculture
• Fourth largest producer of Agri-produce
• More than 70% of the population involved in
agricultural activities
• 15.7 Million hectares of land under cultivation
30.01
43.36
49.76
46.55
FY2011 FY2012 FY2013 FY2014
Agriculture Production (Million Metric Tonnes)
Grains &
Cereals
64%
Fruits
12%
Vegetables
23%
Spices
1%
Agriculture Production by Type (FY2014)
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation,
National Horticulture Board
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation,
National Horticulture Board
3rd
8th
5th 5th
Grains & Cereals Fruits Vegetables Spices
All India Rank in Production (FY2014)
Source: Various Industry Sources

6. • Major Wheat Producing Districts: Hoshangabad, Chhindwara,
Sehore, Harda, Raisen and Vidisha
• Moong, Urad, Masoor, Gram, Arhar and Kabuli Chana are
major Pulses
• Major Fruit Producing Districts: Indore, Ujjain and Jabalpur
• Major Vegetable Producing Districts: Ujjain, Indore, Jabalpur
and Sagar
Wheat
47%
Soybean
18%
Pulses
17%
Others
18%
Grains & Cereals Production by Type (%),
FY2014
Banana
30%
Orange
16%
Guava
15%
Papaya
8%
Mango
7%
Aonla/Gooseb
erry
6%
Others
18%
Fruits Production by Type (%), FY2014
Onion
22%
Potato
18%
Tomato
15%
Brinjal
8%
Cauliflower
5%
Cabbage
4%
Others
28%
Vegetables Production by Type (%), FY2014
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation
Note: Others include Rice and Maize collectively
Source: National Horticulture Board Source: National Horticulture Board

7. Nimrani Food Park
• Location: Nimrani, District Khargone
• Nearest Major City: Indore
• Total Area: 27.12 hectares
• Existing Units (Majorly): Grain Milling, Rice Milling and Bakery
• Prospective Food Processing Units: Value added processing of
Garlic, Onion, Tomato, Soybean, Wheat, Orange and Banana
Jaggakhedi Food Park
• Location: Jaggakhedi, District Mandsaur
• Nearest Major City: Indore
• Total Area: 20.46 hectares
• Existing Units (Majorly): Spices Milling
• Prospective Food Processing Units: Value added processing
of Garlic, Tomato, Orange, Onion and Guava

8. Borgaon Food Park
• Location: Industrial Area Borgaon, District Chhindwara
• Nearest Major City: Nagpur (55 km)
• Total Area: 21.47 hectares
• Existing Units (Majorly): Rice Milling, Spices Milling, Baby
Food, Papad, Pickles and Ketchup
• Prospective Food Processing Units: Value added processing
of Soybean, Wheat, Maize, Rice, Pulses and Mango
Maneri Food Park
• Location: Maneri, District Mandla
• Nearest Major City: Jabalpur (35 km)
• Total Area: 30.35 hectares
• Existing Units (Majorly): Amla, Papad, Badi and Tomato Pulp
• Prospective Food Processing Units: Value added processing
of Rice, Wheat, Soybean, Tomato, Pulses, Maize and Mango

9. Malanpur Food Park
• Location: Gwalior - Bhind - Etawah NH-92
• Nearest Major City: Gwalior (20 km)
• Total Area: 62 hectares
• Existing Units (Majorly): Dairy Products and Grains Milling
• Prospective Food Processing Units: Value added processing
of Potato, Wheat, Pea, Garlic, Onion, and Guava
Babai-Pipariya Food Park
• Location: District Hoshangabad
• Nearest Major City: Bhopal
• Total Area: 50 hectares
• Existing Units (Majorly): Rice Milling, Pulse Milling, and Bakery
• Prospective Food Processing Units: Value added processing
of Wheat, Soybean, Pulses, Orange, and Mango

10. Fruit Juices
• Substantial growth in packaged fruit-based beverages market
in India
• Total fruit juice market in 2014 was INR 70 Billion, Organized
sector had 20% market share
• Mango and orange juices are the most preferred variants
• Major Drivers: Growing awareness, Urbanization, Working
population
0.65
0.84
0.89
0.18
0.38 0.38
FY2012 FY2013 FY2014
Orange and Mango Production (Million Metric Tonnes)
Orange
Mango
Madhya Pradesh Status
• 26% and 2% share in India’s total orange and mango
production respectively
• Very less processing (0.2% and 5.8% of oranges and
mangoes production)
• Major Orange Producing Districts: Shajapur,
Mandsour, Ratlam, Ujjain, Hoshangabad
• Major Mango Producing Districts: Bhopal, Umaria,
Jhabua, Alirajpur, Seoni
• Food Parks around Orange and Mango Production:
Jaggakhedi, Babai-Pipariya, Nimrani, Borgaon, Maneri
• Opportunities also exits for Banana Chips and Guava
Juices
Source: National Horticulture Board

11. Tomato Ketchup/Sauce
• India's tomato ketchup and sauce market is close to INR 10
Billion; growing at 20% YoY
• High demand both in institutional segment (Hotels,
Restaurants, Fast Food Chains etc.) and Retail segment
• Major Drivers: Range of variants & packaging, Working
women, Changing eating habits and Increasing disposable
income
0.29
1.35
1.85
1.94
FY2011 FY2012 FY2013 FY2014
Tomato Production (Million Metric Tonnes)
Madhya Pradesh Status
• 3rd highest crop produced in Madhya Pradesh
• Tremendous growth in production
• Low processing capacity in the State
• Major Tomato Producing Districts: Ratlam, Jabalpur,
Bhind, Barwani, Dhar, Sagar, Chhind-wara, and
Khandwa
• Food Parks around Tomato Production: Nimrani,
Jaggakhedi and Maneri
Source: National Horticulture Board

12. Soybean Oil
• Huge demand of Soybean oil in India
• Imports meet 60% of the demand
• Soybean oil import was 2.3 Million Metric Tonnes in FY2014,
CAGR - 44% FY2012 to FY2014
• Major Drivers: Better than traditional vegetable oils (Rapeseed,
Peanut, Cottonseed etc), High nutritional value (omega-3 fatty
acids and polyunsaturated fats)
6.27 6.50
7.80
5.37
FY2011 FY2012 FY2013 FY2014*
Soybean Production (Million Metric Tonnes)
Madhya Pradesh Status
• Largest producer of soybean in the country (45% share
in all India soybean production)
• Production declined due to huge crop loss in rains
• Major Soybean Producing Districts: Ujjain, Dewas,
Shajapur, Sehore, Mandsaur, Dhar, Chhi-ndwara,
Vidisha, Indore, and Harda
• Food Parks around Soybean Production: Nimrani,
Borgaon, Maneri and Babai-Pipariya
• Opportunities also exists for other soy based products
like Sauce, Margarine, Cheese, and Milk
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation
Note: *= Fourth Advance Estimates

13. Value Added Dairy Products (VADP)
• High growth in various dairy products like Cheese, Packaged
Milk, Butter, Non Dairy Creamer, Instant Milk Powder, Condensed
Milk and Flavored Buttermilk
• Exports of milk and dairy products presents a large opportunity
(Exports CAGR – 103% during FY2010-2014)
• Higher operating margins in value-added products than liquid milk
business (about 2x )
7.17 7.51
8.15
8.84
FY2010 FY2011 FY2012 FY2013
Milk Production (Million Metric Tonnes)
Madhya Pradesh Status
• Madhya Pradesh is the 6th largest producer of Milk
• Very negligible milk processing - 1.8% (As per NSSO)
• Major Milk Producing Districts: Morena, Ujjain,
Mandsaur, Jabalpur and Indore (23.5% of States Milk
Production)
• Food Parks around Milk Production: Malanpur,
Jaggakhedi, Maneri, and Nimrani
Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI

14. RTE/RTC
• Indian organized RTE/RTC (Noodles, Pasta, Upma, Snacks etc)
market was estimated to be INR 53 Billion in FY2014
• Expected growth rate - around 22% CAGR during 2014-2020
• Wheat based products are more in demand
• Major Drivers: Changing lifestyle, Increasing adaptability (among
tier-I and tier-II consumers), Modern retail chains , Marketing &
promotion media
9.22
14.37
13.13
13.93
FY2011 FY2012 FY2013 FY2014*
Wheat Production (Million Metric Tonnes)Madhya Pradesh Status
• Madhya Pradesh is the 3rd largest producer of Grains
• Processing is majorly limited to primary grains milling
• Major Wheat Producing Districts: Hoshangabad,
Chhindwara, Sehore, and Harda
• Food Parks around Wheat Production: All food parks
Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation

15. Creation of Food Testing
Facilities
Encourage R&D for Product
Development
Creation of Robust Cold
Chain/Supply Chain
Network
Easy Credit Availability to
MSME
Promoting Food Processing
in Food Parks
Special Schemes for New
Entrepreneurs
Need for Center of
Excellence
Advanced & Cost Effective
Process Technology

16. SHUSHMUL MAHESHWARI
CEO
RNCOS
E mail: shushmul@rncos.com
Website: www.rncos.com
Phone: +91 120 4224700 /01 / 02/ 03
Address: B 129, Sector 6,
Noida, Uttar Pradesh
India - 201301
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