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Market Opportunities and market players in the sector of Grain, Convenience food, Bakery Products and Cocoa Products


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Market Opportunities and market players in the sector of Grain, Convenience food, Bakery Products and Cocoa Products   :

Market Opportunities and market players in the sector of Grain, Convenience food, Bakery Products and Cocoa Products Deepa Bhandari

Grain Production:

Grain Production India has witnessed a significant increase in total food grain production to 235.9 million tons with a major contribution of rice (95.32 million tons) and wheat (81 million tons) in 2009-2010. Total Food grains (235.9 million tons) Grain Production (million tons) Rice 95.32 Wheat 81 Coarse Cereals 42.29 Pulse 17.29


Rice According to the Food and Agriculture Organization (FAO) of the U.N., 80% of the world rice production comes from 7 countries. Top Ten Rice producers of the world 2009/2010 Country Rice Production in Million tons China 166.4 India 132 Indonesia 52 Bangladesh 38 Vietnam 34.5 Thailand 27 Myanmar 24.6 Philippines 14 Brazil 10.2 Japan 9.7

Rice-market potential:

Rice-market potential Grown in both the seasons- winter and summer. States where rice is grown: West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam, Karnataka and Haryana are the major producing states. More than 50% of total production comes from the first four states. Food Corporation of India purchases around 20 to 25% of the total rice production in the country both under levy from the rice mills and directly in the form of paddy from the farmers at Minimum Support Prices announced by the Govt. More than 4000 varieties of rice are grown in India. India is the world's largest exporter of Basmati rice to Saudi Arabia and other Middle East Countries, Europe, and the United States. India has the potential to export one million tons of Basmati rice. Major destinations for Indian non-basmati, white/parboiled rice are Bangladesh, Indonesia, Philippines, Nigeria, South Africa, Ivory Coast, and other African countries.

Status of Rice Milling:

Status of Rice Milling Rice milling is the oldest and the largest agro processing industry of the country. At present it has a turnover of more than 25,500/- crore per annum. It processes about 132 million tonnes of paddy per year and provides staple food grain and other valuable products required by over 60% of the population. Paddy grain is milled either in raw condition or after par-boiling, mostly by single hullers of which over 82,000 are registered in the country. Apart from it there are also a large number of unregistered single hulling units in the country. A good number (60 %) of these are also linked with par-boiling units and sun -drying yards. Most of the tiny hullers of about 250-300 kg/hr capacities are employed for custom milling of paddy. Apart from it double hulling units number over 2,600 units, underrun disc shellers cum cone polishers numbering 5,000 units and rubber roll shellers cum friction polishers numbering over 10,000 units are also present in the country. Further over the years there has been a steady growth of improved rice mills in the country. Most of these have capacities ranging from 2 tonnes /hr to 10 tonnes / hr.

Major Rice Processing Mills in India:

Major Rice Processing Mills in India Kohinoor Foods Ltd M/S Alliance Global Shakti Bhog Foods Ltd Ameeti International Group Kundan Rice Mills Ltd Oasis Enterprises Shree Jagdamba Rice & Gen. Mills Will Power Exim Services Sahara Milling System Pvt. Ltd Sri Yamuna Modern Rice Mills, Sri Vaigai Modern Rice Mills Jai Shiv Traders India Trading Company


Wheat Wheat is the dominant food grain of world commerce with 682 million tons productions, 638 million tons consumption, and 136 million tons trade with 197 million tons ending stocks.

Wheat Scenario in India :

Wheat Scenario in India Uses of Wheat according to classes Class of Wheat Uses Soft red winter wheat Cakes, Cookies, Snacks Hard red winter wheat Bread Hard red spring wheat Bread Durum wheat Spaghetti, macaroni, pasta White wheat Cakes


Pulse India is the world's largest pulse producer, consumer and importer accounting for 27% of the global pulse production. India accounts for 2/3rd of the world's chickpea production.

PowerPoint Presentation:

Chana or Chickpea is the largest produced pulses in the world with production share 50% approximately. India is the largest producer and consumer in the world. Chana is a Rabi crop and is cultivated from November- December to February-March. The peak arrival period begins from March-April at the major trading centers of the country. India is the only country in the world to have futures trading in Pulses. India's chana production fluctuates between 5.5 - 7.5 million tons and is normally 40% - 50% of India's total pulse Production. The major producing states are Madhya Pradesh, Rajasthan, Uttar Pradesh, Maharashtra, Andhra Pradesh, Gujarat and Karnataka.

Market potential and opportunity in Chana:

Market potential and opportunity in Chana

Other Pulses grown in India:

Other Pulses grown in India

Market Opportunities in Food Grains:

Market Opportunities in Food Grains About 1.83 lakh (183,000) tons of wheat, 3.95 lakh (395,000) tons of rice, 22,000 tons of paddy and 110 tons of maize were damaged in between1997 to 2007 . T he changing food habits of the population from eating a lot of rice to shifting to consumption of wheat and pulses for healthier diet has really opened a wide market opportunity.

Market Opportunities and Market Players in Bakery Industry :

Market Opportunities and Market Players in Bakery Industry The Indian bakery industry is dominated by the small-scale sector with an estimated 50,000 small and medium-size producers, along with 15 units in the organized sector. The bakery products sector is one of the largest segments among the processed food markets in India. In 2006–07, the annual turnover of bakery products, which includes bread, biscuits, cakes, pastries, buns, rusk , etc. was estimated at US$0.9 billion. There are a total of about 2 million bakeries in India and some of the major players in the organized sector include Britannia, Parle and ITC. Breads and biscuits are the two main bakery products and together account for a total sales volume of 69 per cent of the bakery market.

Division of Bakery Industry:

Division of Bakery Industry Market players in Biscuits Biscuits have a 50% market share in organized markets and 50% market share in unorganized sectors

Major players in Biscuit industry:

Major players in Biscuit industry

Bread Market :

Bread Market The bread market is estimated at Rs 15 bn. There are a number of producers in both sectors, organized and unorganized. Major players in the organized sectors for bakery and bread makers are Modern Foods, a central public sector and a leader in the bread segment privatized by the government in a strategic sale to Hindustan Lever at Rs 105 million. It has nearly half the organized market share. Britannia’s has also gained a major share of the bread market following the Modern Foods. Other than biscuits, Britannia makes breads and fruit cakes. Other bread manufacturers are Candico (India), Elite Breads and a host of others with small market presence. From a low priced commodity, bread has graduated into a branded product with discriminating prices.  Barring Premium Bake, the others are priced high - almost double the standard bread brands.  Premium Bake comes closer to the 'normal' price, a mid-way pricing strategy.

PowerPoint Presentation:

The bread industry had a 15% market share in the organized sector and 85% share in the unorganized sector. Lead Players Modern Foods, Britannia Inds are the lead players in biscuit in the market. Leading Brands Britannia, Modern, Bakeman Sujana , Premium Bake, Whyte Kollar , Ovenfresh , Premium Bake, Gardema are the leading brands in biscuits.

Market Opportunities and Market Players in Convenience Foods Industry :

Market Opportunities and Market Players in Convenience Foods Industry Convenience foods are foods which are designed to save consumers time in the kitchen and reduce costs due to spoilage. These foods require minimum preparation, typically just heating, and are packaged for a long shelf life with little loss of flavor and nutrients over time. Advantage of Convenience foods: Less time consuming Easily prepared Can stock Longer Shelf life

Market Opportunities:

Market Opportunities Indian Government is providing more infrastructures for this sector. Excise duty is now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This allows manufactures to bring down their prices & spreads its flavors to the world. Consequently, canned/preserved food saw 12 % current value growth in 2008 over the previous year, while frozen processed food grew by 13 %. The market for semi-processed/cooked and ready to eat foods was around Rs 82.9 billion in 2004-05 and is rising rapidly with a growth rate of 20 per cent.

Key point for Market Opportunities for convenience and ready to eat food :

Key point for Market Opportunities for convenience and ready to eat food Globalization of Indian food and its culture are the core factors for popularization of ready to eat foods. Main motivation for these ready to eat foods is fast growing foreign market. Retail outlet culture is now growing rapidly in India. Shelf life of these foods is at least 12-18 months. Quality, Taste and Flavor of these foods remains as good as fresh up to the expiry date. Women wanting to spend more time out of the kitchen. More working bachelors staying away from homes. Cost effective in comparison to the Indian cuisine served by the restaurants in foreign countries.

Ready-to-eat food  :

Ready-to-eat food According to the report of Euromonitor International, a market research company, the amount of money Indians spend on meals outside the home has more than doubled in the past decade, to about US$ 5 billion a year and is expected to double again in about half that time. Growth rate in the industry is at 9-12 per cent. Value addition of food products is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. With the growth of 150 per cent in sales, the popularity of food and agro products is not surprising. With such promise in the sector, a number of foreign companies have joined the competition. While US brands such as McDonald's, Pizza Hut and Kentucky Fried Chicken have become household names, more are on their way. Eg : Country Chicken- an Australian chain of fast food, Starbucks- Coffeehouse

Major players in convenient foods and ready to eat meals are :

PLAYERS IN READY TO EAT FOOD MTR Kohinoor Foods ITC Haldiram Tasty Bites Major players in convenient foods and ready to eat meals are HLL has entered the ready to eat segment through Indus Valley rice meals in seven flavors. MTR Foods has also launched a wide range of rice meals and other curries. Satnam Overseas has also entered this growing market with its Kohinoor brands of rice meals and curries. ITC ‘s more than 50 packaged branded food products under Kitchens of India and Aaashirvaad brands with different varieties of ready to eat, cooked, food is gaining popularity in the market.

Types of RTE foods available:

Types of RTE foods available Types of Ready To Eat Food Vegetarian Dish Non-vegetarian Dish Aloo Mattar Chicken curry Palak paneer Butter chicken Sarso ka saag Karahi chicken Chana masala Mughalai chicken Kadi Pakora Mutton chicken Cheese Tomato Mutton masala Dal makhani Mutton korma Rajma masala Karahi mutton Desserts Gajar ka halwa , Suji ka halwa , milk kheer

Market and its Growth:

Market and its Growth The food processing industry is one of the largest industries in India and it is the ranked fifth in terms of Production, Consumption, Export & Expected growth. Processed food market in India accounts for 32% that is Rs. 1280 billion or 29.4 billion US $ in a total estimated market of Rs. 3990 billion or 91.66 US $. Euromonitor International, a market research company says that amount of money Indian spend on ready to eat snacks & food is 5 billion US $ in a year while on abroad Indian or Indian subcontinents spend 30 billion US $ in a year. Ready to eat packaged food industry is over Rs. 4000 crore or 1 billion US $ and it is growing at the rate of 20 % per annum. Ready to eat food market is developing specifically in UK, USA, Canada, Gulf & South Asian Countries with the growth rate of over 150 % per annum.

Convenience Foods-Noodles:

Convenience Foods-Noodles India consumes about 90,000 tons of noodles every year. A decade ago the word ‘noodles’ was synonymous with Nestle’s ‘ Maggi ’. Two and a half decades since its launch, ‘2 minute Maggi noodles’ is the no. 1 brand in the Indian market. According to Inspired by the success of Maggi , a number of F&B manufacturers have ventured into this Some of the prominent names and current market players are Nestle ( Maggi’s 2 minute noodle) Nissin (Top Ramen- Smoodles ) Capital Foods Ltd ( Ching’s Secret) Future Group (Tasty Treat) Aditya Birla Retail (Feasters) GlaxoSmithKline ( Horlicks Foodles ) Hindustan Unilever ( Knorr ) ITC ( Sunfeast ) AA Nutritions (Yummy) Chaudhary Group from Nepal and India ( Wai-Wai )

Noodle market share and opportunities in India:

Noodle market share and opportunities in India Datamonitor , overall the instant noodle market in India is worth over Rs 1300 crore ($ 260 millon ) and is growing at a phenomenal rate of over 17-20 per cent a year . Nestle India is investing Rs 950 crore ($ 210.9 million) to set up two units to manufacture instant noodles and infant foods in Karnataka and Haryana. With increasing competition in the Indian noodles market, it is very difficult to say whether Maggi can sustain its popularity over the coming years. However one does see a great prospect in the launch of new entrants in this market.

Convenience foods-Soup:

Convenience foods-Soup Soup market in India was in the range of Rs 100-125 crores ($22 mn – 27 mn ) in 2010. This segment of packaged food has been relatively under penetrated in India but with urbanization and rise in organized retail, rise in income and changing lifestyles, the segment has experienced growth rates of more than 20% year on year in last 5 years. Current scenario of Indian soup market is: Dehydrated soups dominate the market. It is followed by canned soups which are way behind at second place. Market for instant and frozen soups is nil. In terms of flavors, the choice of consumers has not changed significantly in last few years. The top three flavors are: Tomato (leader position) Sweet corn Vegetable In non-vegetarian flavors, chicken soup is most popular. Supply mediums – small retailers / mom-n-pop stores dominate the distribution of soups in India. This is primarily because organized retails is in nascent stage and have low penetration in rural and tier III and lower. It is expected that share of organized retail is expected to increase in future.

Major market players and brands in Soup in India:

Major market players and brands in Soup in India Major market players: Indian soup market is dominated by a few players. The market is consolidated and top three players account for more than 90% of the market by value and volume. The key players are: Hindustan Uniliver – The company sell soups under Knorr brand and have the largest market share. Nestle India – Nestle is another prominent player in the market with its brand name Maggi Capital Foods Ltd. – Relatively small and new player (launched in 2008) as compared to top two the company has been gaining market share in last few years. It sells its products under Ching’s Secret brand name Major soups brands: Knorr (Hindustan Uniliver ) Maggi (Nestle) Ching’s secret (Capital Foods) Sil ( Scandin Food) Bambino (Bambino Agro) Campbell’s ( Weikfield Products) MTR soups

Market Opportunities: Soup Market in India:

Market Opportunities: Soup Market in India Increasing urbanization, rising income and heavy marketing by the players to make soups part of Indian diet. The penetration is significantly low as compared to western countries. The rise of new players such as Capital Foods indicate that as the market increases, there will be scope for new players with innovative products and correct pricing will be able to gain market share. Introducing healthy soups is one such innovation which is gaining market traction. Besides the rising economy and the shift in food habits, innovation in this sector can be a key for the expansion. Time saving health food habit is the trademark of soup that lies between a snack and a meal which will be definitely appreciated by housewives and people who are conscious of their health.

Market Opportunities and Market Players in Cocoa Products :

Market Opportunities and Market Players in Cocoa Products Cocoa pod is mainly imported from cocoa producing countries from the world. At present, India only produces about 6,900 tons of cocoa however the requirement of the country is about 30000 tons. The global chocolate market is worth $ 75 billion per annum

Current Scenario in India-Cocoa industry:

Current Scenario in India-Cocoa industry Cocoa is the main basis for Chocolate production. Thus India being a consuming country mainly imports. With an expanding chocolate manufacturing industries in India, the requirement for cocoa is increasing rapidly. Thus for Cocoa produts there are 20 units engaged in the manufacture of cocoa products like chocolates, drinking chocolate, cocoa butter substitutes, cocoa based malted milk foods with an annual production of approximately 34,000 tons. As of 2007, chocolate market is estimated to be around Rs 1500 crore growing at the rate of 18-20% p.a.

Market Share of Chocolate in India:

Market Share of Chocolate in India With the introduction of chocolate manufacturers such as Nestle and Amul , the market share of Cadbury has gone down from 80 per cent to 70 per cent, still topping as the market leader. The entire Celebrations range of Cadbury seizes about 6.2 per cent and the Cadbury Dairy Milk alone holds 30 per cent of market share.

Major Players :

Major Players Cadburys India Limited Nestle India Gujarat Co-operative Milk Marketing Federation Cocoa Manufactures and Processors Co-operative (CAMPCO) Bars Count Lines Wafer Panned Premium Cadburys Dairy Milk & Variants 5-Star, Milk Amul Milk Chocolate Treat Perk Gems, Tiffins Temptation & Celebrations Nestle Milky Bar & Bar One. New entries such as Sweet World, Candico and Chocolatiers are present in several malls.

Market Opportunities:

Market Opportunities The per capita consumption of chocolate in India is 300 grams as compared to Switzerland who tops the per capita chocolate consumption with 10.14 kg and Italy takes the 15 th spot with 2.79 kg of per capita chocolate consumption.

PowerPoint Presentation:

In India over 70 per cent of chocolate consumption takes place in urban market. Margins in the chocolate industry range between 10 and 20 per cent depending on the price point at which the product is placed. The growth rate in chocolate industry has risen by 15 per cent in 2007 to reach 36000 tons. Besides chocolates itself, the chocolate wafer market is around 35 per cent of the total chocolate market and has been growing at around 13 per cent annually. The Indian candy market is currently valued at around $ 664 million, with about 70 per cent ($ 464 million) in sugar confectionery and the remaining 30 per cent ($203 million) in chocolate confectionary . The consumer behavior regarding desserts and sweets still rely majorly on mithai - the traditional Indian sweets and milk based sweet. Thus the market opportunity is very high in respect to the growth of chocolate industry. Advantages over traditional sweets in terms of packaging and shelf life make both middle class and rich Indians to opt for chocolate.

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