Opportunities the INDIAN FOOD

Opportunities THE INDIAN FOOD

SECTOR

OFFICIAL PROGRAM PARTNER

OPPORTUNITIES IN THE INDIAN FOOD SECTOR

Date: May 2015

Language: English Number of pages: 150 Author: T&A Consulting

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DISCLAIMER

The information in this report were gathered and researched from sources believed to be reliable and are written in good faith. Switzerland Global Enter- prise and its network partners cannot be held liable for data, which might not be complete, accurate or up-to-date; nor for data which are from internet pages/sources on which Switzerland Global Enterprise or its network partners do not have any influence. The information in this report do not have a legal or juridical character, unless specifically noted.

Research Methodology

The methodology was a judicious mix of secondary and primary research. Secondary research involved selection and analysis of various data sources, while primary research involved discussions with decision makers and influencers and it also served as a tool for validation of secondary findings.

Apart from industry overview, key statistics, market potential, growth drivers, regulations, government incentives, the research methodology was geared to identify the following:

 Potential food segments for export from Switzerland to India  New and emerging growth areas such as Ready food segment and imported food  Gaps and Key challenges  Identify and list major foreign and Indian players across different segments  Local partners of foreign brands  Pricing across product categories  List of major influencers including industry associations, regulatory authorities and other public sector and private sector organizations  Important industry events

Some broad steps of research methodology include

Data Collection

Secondary Research  Market and industry information  Public and proprietary database

Primary Research  Discussions with major industry players

Data Analysis

Data Interpretation

Generate actionable information

Terms of Reference

Food sector is one of the largest sectors in India in terms of production, growth, and consumption. Food constitutes about 30% of the consumer wallet. Growth in food consumption, increased market penetration, addressing new emerging markets and launch of new value added products to meet the needs of convenience, health and variety has created opportunities for overseas companies to increase their exports to India

One of the underlying objectives of this study is provide information, which is actionable and

acts as a ready reckoner for Swiss Companies looking to enter the Indian market.

This ‘Market Intelligence Report India’ is a study on the Indian Food sector undertaken and published by the Export Service of the Swiss Business Hub India in collaboration with T&A Consulting, a boutique advisory firm based in New Delhi. The target readership consists of the Swiss industry associations, Swiss companies operating in the Food and Food Processing sector, Swiss Global Enterprise Business Network and the Embassy of Switzerland in India.

The report aims to provide an in-depth assessment of Food sector and new upcoming high

value food segments in India in a coherent manner. It provides an analysis of various segments

and opportunities in the food processing sector, which can be targeted by the Swiss companies.

The report also provides a list of some major players operating in various segments, which in turn provides an indication of the nature of existing competition, potential customers and potential partners.

Understanding the competitive landscape of the Indian food markets is necessary for Swiss companies to decide on the appropriate niche. The purpose of this report is to highlight potential opportunities to Switzerland’s food exporters

The findings of the report can provide a base for Swiss companies evaluating the possibility of entering the Indian market.

Exchange Rate Used 1 USD = INR 60

List of Abbreviations

Abbreviations Acronym

APEDA Agricultural & Processed Food Products Export Development Authority

APMC Agricultural Produce Market Committees

ASSOCHAM The Associated Chambers of Commerce and Industry of India

BTP Bio-Technology Park

CAGR Compound Annual Growth Rate

CEO Chief Executive Officer

CIS Commonwealth of Independent States

DAHDF Department of Animal Husbandry, Dairying and Fisheries

DCS Dairy Cooperative Societies

DGFT Directorate General of Foreign Trade

EAA Ethylene Acrylic Acid

EHTP Electronic Hardware Technology Park

EMAA Ethylene Meth acrylic Acid

EOU Export Orient Unit

EVA Ethylene Vinyl Acetate

F&B Food & Beverage

FEOU Food Export Oriented Unit

FIPB Foreign Investment Promotion Board

FPO Fruit Products Order

FSSA Food Safety and Standards Act

FSSAI Food Safety and Standards Authority of India

FTA Free Trade Agreement

FY Financial Year

GCMMF Gujarat Cooperative Milk Marketing Federation Ltd

GDP Gross Domestic Product

GMP Good Manufacturing Practice

HACCP Hazard Analysis and Critical Control Points

HORECA Hotel, Restaurant and Catering

HR Hour

HS Codes Harmonised System

HUL Hindustan Unilever

IE Importer Exporter

IMF International Monetary Fund

IQF Individually Quick Frozen

ITC Indian Tobacco Company

KFC Kentucky Fried Chicken

Kg Kilogram

KMF Karnataka Milk Federation

ML Millilitres

MMPO Milk and Milk Products Order

MPEDA Marine Products Export Development Authority

MSG Monosodium Glutamate

MT Metric Tons

NA Not Available

NOC No Objection Certificate

NRI Non-Resident Indian

PET Polyalkylene Terephathalates

PVC Poly Vinyl Chloride

QSRs Quick Service Restaurants

RTE Ready To Eat

SEZ Special Economic Zone

SMEs Small And Medium Enterprises

STP Software Technology Park

SWMA Standards of Weights and Measures Act

UAE United Arab Emirates

UK United Kingdom

USA United States of America

USD United States Dollar

VAT Value Added Tax

Table of Contents

1.0 EXECUTIVE SUMMARY______10 4.3.1 Rising Disposable Income 55 2.0 INTRODUCTION______12 4.3.2 Urbanization 55 2.1 Market Size 13 4.3.3 Organised Retail 56 2.2 Countries Of Major Imports 15 5.0 CONSUMER PREFERENCES 59 3.0 MARKET SEGMENTATION 17 6.0 DISTRIBUTION CHANNEL 63 3.1 Fruits & Vegetable 18 6.1 Intermediaries In The Distribution Channel 63 3.1.1 Fruits & Vegetables Processing Value Chain______20 7.0 FOREIGN PLAYERS 65 3.1.2 Total Indian Imports 21 8.0 PRICING 69 3.1.3 The Market For Imported Fruits 21 9.0 FOCUS FOODS: Opportunity For Swiss Smes__ 72 3.1.4 Major Player 22 9.1 Chocolates 72 3.2 Dairy (Milk & Milk Products) 23 9.1.1 Overview 72 3.2.1 Market For Foreign Dairy Players 25 9.1.2 Growth Rate & Projected Market Size 73 3.2.2 Total Indian Imports 27 9.1.3 Purchased Imports 74 3.2.3 Major Players 28 9.1.4 Manufacturers & Key Players 74 3.3 Meat And Poultry 29 9.1.5 Opportunities In The Indian Chocolate Industry 77 3.3.1 Total Indian Imports 31 9.2 Cheese 78 3.3.2 Major Players 32 9.2.1 Overview 78 3.4 Marine Products 33 9.2.2 Growth Rate And Projected Market Size 78 3.4.1 Total Indian Imports 34 9.2.3 Purchased Imports 79 3.4.2 Major Players 35 9.2.4 Manufacturers & Key Players 80 3.5 Grains 36 9.2.5 Opportunities In The Indian Cheese Market 82 3.5.1 Major Players 36 9.3 Biscuits 83 3.6 Consumer Foods 38 9.3.1 Overview______83 3.6.1 Packaged / Convenience Foods 38 9.3.2 Growth & Future Projections 83 3.6.2 Ready To Eat (Rte) Segment 44 9.3.3 Purchased Imports 84 4.0 MARKET TRENDS & KEY DRIVERS 48 9.3.4 Manufacturers & Key Players______84 4.1 Market Trends 48 9.3.5 Opportunities In The Indian Biscuit Industry 87 4.2 International Food & Trends 49 9.4 Olive Oil 88 4.3 Demand Drivers 54 9.4.1 Overview 88

9.4.2 Major Imports & Duties 89 9.8.2 Growth Rate And Projected Market Size 113 9.4.3 Import Restrictions 90 9.8.3 Purchased Imports 114 9.4.4 Manufacturers & Key Player 91 9.8.4 Manufacturers & Key Players 114 9.4.5 Opportunities In The Olive Oil Industry 93 9.8.5 Opportunities In The Tea Market 117 9.5 Juices 94 9.9 Functional Foods 118 9.5.1 Overview 94 9.9.1 Overview 118 9.5.2 Market Size & Projected Growth 94 9.9.2 Market Size & Projected Growth 119 9.5.3 Organic Juices 95 9.9.3 Emerging Categories: Key Opportunities 120 9.5.4 Purchased Imports 98 9.9.4 Key Players & Their Brands 122 9.5.5 Manufacturers & Key Players 98 9.10 Organic Food 123 9.5.6 Opportunities In The Indian Juice Industry______100 9.10.1 Major Players 124 9.6 Wine 101 9.11 Gluten Free Products 126 9.6.1 Overview 101 9.12 Lactose Free Food 128 9.6.2 Major Imports 102 9.13 Vegan Food 129 9.6.3 Key Players & Brands 103 10.0 GOVERNMENT REGULATIONS & IMPORT RESTRICTIONS 130 9.6.4 Regulations 106 10.1 Sector Specific Government Policies 132 9.6.5 Opportunities In The Wine Industry 107 10.2 Foreign Direct Investments 134 9.7 Coffee 108 10.3 Import Duties 136 9.7.1 Overview 108 10.4 Specific Import Restrictions 139 9.7.2 Growth Rate And Projected Market Size 108 11.0 PACKAGING & LABELLING 141 9.7.3 Purchased Imports 109 12.0 KEY INFLUENCERS 144 9.7.4 Manufacturers & Key Players 110 13.0 KEY CHALLENGES 147 9.7.5 Opportunities In The Coffee Market 112 14.0 MAJOR INDUSTRY EVENTS 149 9.8 Tea 113 9.8.1 Overview 113

1.0 Executive Summary

The underlying objective of this research study is to provide a brief outline of the opportunities that exist in the Indian food sector for Swiss companies who are engaged in the production and processing of food and beverages.

“Food” in the Indian context conjures images of Indian cuisine with its mix of spices and hot food and getting increased visibility across the world. Traditional Indian traveller is known for his inclination to try “Indian food” even during travels further ashore. While this continues to be true to a large extent for a leisure traveller, what is lesser known is the propensity of the new and increasingly urbane Indian customer to try food from distant countries.

This consumption is aided by the fact that the higher income group has an increased disposable income, which often comes with paucity of time and thus preference for a meal, which can be cooked in relatively shorter span of time.

Imported food segment carries a perception of “luxury’ and is perceived by the government as something which is of interest to a very small minority of the population and restricted to large urban centres especially New Delhi, Mumbai and Bangalore

The Indian Government uses a variety of import restrictions including non-trade tariff barriers to protect its domestic food market. However we are gradually witnessing easing of these norms and many foreign players having benefited by supplying food products as well as equipment and sharing technology for the same. Having said the above, regulatory environment does remain one of the main challenges for a foreign entrant.

In this report, we have highlighted key segments, which may be of particular interest to the Swiss companies and major players operating in each of these segments.

This report also provides insights into the Indian food retail market, consumer behavior, attitudes and percep- tions toward food products, a brief regulatory overview, list of major stakeholders including industry associations, regulatory bodies and finally important trade events which may be a good platform for Swiss companies.

The preferred route for specialty food products to enter Indian market is through importers/distributors. Import- ers / distributors in India can help in product promotions like in-store promotions, testing of samples, educating customers on various usages of new food products. Exporters (foreign partners) usually provide necessary help (financial incentives, packing products in small samples etc) to the importers / distributors for promotion of their products.

However the above route is not a panacea for a new foreign company. The Indian importer is still a relatively small promoter led company with limited bandwidth and resources towards investing in building a brand in the country. Typically Indian importers look to the principal towards sharing part of such expenses at least in the initial years.

Also sometimes Indian companies also seek some assurance that there will be continuity in the relationship once they have built the business in India. The background being that there have been instances in the past wherein Principals have set up their own subsidiaries once the Indian business has reached a certain critical mass and cased business with Indian distributors.

A potential next step for Swiss companies evaluating India market entry would be undertake a market check on demand potential of their respective product and qualified shortlist of potential partner(s).

Some of the recent trends observed in the Indian food industry are mentioned below:

Online Retailing

 India's online retail market for food and groceries is also expected to grow on the back of growing Inter- net and Smartphone penetration in India. This shift in consumer preference is due to competitive pricing and convenience of doorstep delivery.  A clear indication of this is increase in the number of online food and grocery retailing sites from 14 in 2013 to 44 in 2014.

Value Added Food

 Value added foods such as organic , lactose-free, gluten-free are gaining demand due to increasing awareness

Demand from Smaller Cities

 In terms of imported food demand region-wise, six cities (Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore) were earlier driving growth but new trends show that smaller cities and in some cases small towns are also driving the growth.

2.0 Introduction

India produces annually

 127 million metric tons of milk, the highest in the world.

 76 million metric tons of fruits and 156 million metric tons of vegetables, the 2nd highest in the world

 485 million livestock, the largest in the world

 259 million tons of food grain, the 3rd largest in the world

 12 million tons of fish, the 2nd largest in the world Food sector is one of the largest sectors in  489 million poultry India in terms of production, growth, consumption, and exports. Food is the  66 billion eggs biggest consumption category in India with nearly 30% of the consumer’s wallet expenditure

Source: APEDA, 2013

Buoyed by a favourable policy environment and the demand-push impact of a young consuming class with growing disposable incomes, India undoubtedly offers an opportunity in the food and agribusiness sector.

2.1 MARKET SIZE

The Indian food consumption stands at USD 380 billion in 2014 and processed food at USD 114 billion, growing between 5-7% CAGR opening up huge opportunities for investment across the entire value chain.

Food consumption in India is expected to grow at a CAGR of 5.32%. Consumption led demand is driving this growth.

Food Consumption In India (in USD Billion) 250 229.7 210.3 198 200 191.4 180.1 184.4 168.6 157.7 151.7 150

100

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 E

A major contribution towards the growth of food industry is also from the emerging Indian food service industry

The current size of the Indian food service industry is estimated to be USD 48 billion and is projected to

grow to USD 62 billion by 2018.

Source: National Restaurant Association of India (NRAI)

India’s processing level is low, currently standing at

 2.2% for fruits and vegetables

 26% for marine products

 6% for poultry products

 37% for dairy products

 20% for buffalo meat

Whereas in other nations, the processing level stands at

 Fruits & Vegetables – 65 % (USA), 78% (Philippines), 23% (China)

 Marine, Poultry, and Meat – 60-70% for developed nations

 Dairy products – 60-75% in developed countries

2.2 COUNTRIES OF MAJOR IMPORTS

The food demand in India is rapidly outstripping supply and that makes it into a major importer. Even some of the basic day-to-day requirements are now been imported into India

Key Points Countries of Import

 India is world`s largest importer of edible oil. The Indonesia and Malaysia. country is fulfilling more than 50% of the domestic edible oil demand by importing it

 India, the world`s biggest consumer of sugar is Brazil, Thailand, Guatemala and Spain are the major likely to import 1.4 million tons of sugar in the supplying countries. year as domestic output is seen falling short of demand  Sugars and sugar confectionery take up billion dollars of imports.

 India is one of the biggest fruit and vegetable pro- Canada, USA and Australia ducer in the world. Still, Indian imports of vegetables has increased significantly over the years

 Fruits, especially nuts, apples and dates worth USA, Ivory Coast, Benin and Afghanistan almost USD 700 million were imported this year

 Eggs and honey, worth USD180 million came into Australia and New Zealand India.  In spite of having largest milk production, India is

 a very minor player in the world market.  Most of the demand-supply gaps of liquid milk requirements for urban consumers in the past years were met by importing anhydrous milk fat/butter and dry milk powders.

Additionally, there are many other food items which are imported in India and are described in later sections of the report

3.0 Market Segmentation

The food processing sector comprises six major segments

Fruits & Vegetables - India is the world’s Marine Products - With 8.9 MT produc- second largest producer of fruits and vege- tion in FY12, India is the second largest

tables producer of fish in the world

Milk & Milk Products - With 127.3 MT in Grain Processing - India produced about

FY12, India is the largest producer of milk 259.3 MT of food grains in FY12

in the world

Consumer Foods - Amongst the fastest Meat & Poultry - India is the largest pro- growing segments in India ducer of buffalo meat (1.5 MT*) and the second largest producer of goat meat (0.6 MT*)

MT - Metric Ton

Food processing segment and  The food processing industry contribut- market share (FY12) ed 7 per cent to India's GDP and employs 13 million workers directly Meat, Fish, Fruits, Vegetables and Oils

Dairy Products  The highest share of processed food is in 25% the Dairy sector where 37 per cent of to- 39% Grain Mill products tal produce is processed by the organized sector 20% Beverages 5% 11% Other food products  Fruit & Vegetable processing, which is currently 2 per cent of total production is expected to reach 25 per cent by 2025

Source: Ministry of Food Processing Industries (MOFPI), Annual Report MOFPI (2012-13)

Food Processing

Fruits & Ve g- Milk & Milk Meat & Poul- Marine Grain Pro- Consumer etables Products try Products cessing Food

Packaged Food Aerated Soft Packaged Alcoholic Drinks Drinking Water Beverages

3.1 FRUITS & VEGETABLES

Fruits & Vegetables are one of the most important and fast growing sub-sectors of the processed food sector, as fruits and vegetables form an indispensable part of a healthy diet. India accounts for 13% of vegetables and 12% of fruits produced globally. Currently, only 2.2% of the total produce in India is processed and the rest marketed as fresh fruits and vegetables. Globally, developed countries process fruits and vegetables in excess of 65%. Pro- cessing is the best way to reduce wastages in India’s fruits and vegetables industry.

It is estimated that around 25-30 percent of the produce is lost post harvest, due to lack of processing facilities (in flush season) and inadequate infrastructure for post-harvest treatment, packing, storage and transportation. The lack of sorting to eliminate defects before storage, use of inadequate packaging materials, including insufficient expertise, poor management and market dysfunction compound the problem of post harvest losses.

Prominent Processed  Fruit pulps and juices Fruits and Vegetables  Ready-to-serve beverages (India)  Canned/Frozen fruits, Pulp and vegetables  Jams, squashes, pickles, chutneys  Dried fruits and vegetables  Fruit juice concentrates  Vegetable curries in restorable pouches  Mushroom products

Fruits & vegetables processing in India is almost equally divided between organized and unorganized sectors with the share of the organized sector in Fruits and Vegetables processing is 48 per cent. Majority of the units are in the Small Scale sector, having low capacities of up to 250 tons/year, though big Indian and multinational companies have capacities in the range of 30 tons/hr. The government expects albeit optimistically the processing in this sector to grow to 25 per cent of the total produce by 2025.

3.1.1 Fruits & Vegetables processing Value Chain

Primary Secondary Farm Produce

Processing Processing DISTRIBUTION

Grading

Sorting

Mixing Respective Fruit con- Temperature Bottling/ Sterilization centrate/ Pulp/ Slices Control Capping/ Cooling/ + Sugar + Canning Washing Other ingredients Labelling

3.1.2 Total Indian Imports

Imports of fruits and vegetables reduced to USD 1.9 billion during 2013-14 from USD 2.5 billion in 2012-13.

Fruit imports have been growing at 25 percent for the last few years, according to industry estimates and are expected to double to USD 464 million this year ending March 31, according to CNBC press releases.

3.1.3 The Market for Imported Fruits

During 2013-14 India imported USD 250 million worth of apples and according to the U.S. Apple Association, India is now the third largest importer of American apples, after Mexico and Canada. The year- round availability of imported fruits coupled with a growing retail infrastructure has helped sales not just in metros but in tier two and three cities of India as well.

"We import almost 25 varieties of fruits including rare varieties like blue berries, black berries, red cur-

rants and dragon fruits. Imported fruit accounts for nearly a third of our fruit sales" Managing Director

Godrej Nature's Basket (an importer of fine foods with 25 retail stores India-wide)

Opportunity

 Fruits and vegetables offer a significant potential for the organized processing players due to the low level of processing and a vast supply base, coupled with considerable international demand for certain fresh as well as processed fruits and vegetables. However, inefficient domestic farming, higher costs of product delivery, exports pro-

tection and demanding standards, intermediaries and inefficiencies in the supply

chain are the biggest bottlenecks in the growth of the sector.

 The changing lifestyle of Indians, which involve international travel, introduction to international cuisine and developing tastes for exotic fruits and vegetables has

opened the doors for many global exporters.

 Imported fruits like Kiwi, blue berries, black berries, red currants, dried fruits and

vegetables and dragon fruits are potential areas of opportunity

The recent emphasis on fruits and vegetables in light of nutrition security, growing interest of food processors and more profitable land use has brought in a significant change in the outlook of the producers who started using the arid/semi-arid lands and horticul- 21 tural crops that have lesser demands on water and gives three to four times more remuneration than field crops

3.1.4 Major Players

Some Major Players- Fruits and vegetables Sector

Companies Key Brands Key Products

Adani Agri Fresh Agri Fresh Fresh Fruits

Bharti Field Fresh Fresh Fruits & Vegetables

Chordia Foods Products Ltd. Navin,Pravin, Toofan Ketchup, Pickles, Sauces

Desai Brothers Ltd. Mother's Recipe Pickles, pastes

Frozen & dried fruits & vegetables, frozen Flex Foods Chef's Choice mushroom & herbs

Green Valley Food Corp Green Valley Frozen fruits & vegetables

HUL Kissan Jams, squashes, ketchup, sauces, spreads

Keventer Ago Appy, Njoi, Frooti Fruit juices

MAHA Grapes MAHA Grapes Fresh Packaged grapes

Mahindra Shubhlab Service Mahindra Shubhlab Fresh F & V

Mapro Foods Pvt.Ltd Mapro Jams,squash, syrup

Mother Dairy Safal Frozen processed F & V

Mrs.Bector Foods Cremica Ketchup, Sauces, dips

Namdhari seed Pvt. Ltd. Namdhari Fresh & packaged fruits & vegetables

Nestle India Nestle Ketchup

Priya Foods Priya Fruit & vegetables pickles, powder

Everfresh, Karen Anand, Temptation Foods Frozen fruits & vegetables Delika

The Global Green Company Global Green, Tify Gherkins, pepper, corn, cherries

3.2 DAIRY (MILK & MILK PRODUCTS)

As the world’s largest producer and consumer of milk products, India represents one of the world’s most lucrative dairy markets. India's formal dairy market size was USD 10 billion, in 2012-13.The formal market comprises organised players such as co-operatives and private entities, which control the supply chain linkages.The segment is expected to grow at a CAGR of 13 to 15 per cent until 2019-20. Amul spurred the “White Revolution” in India and is the largest food brand in the country with 26% share in the USD 36 billion Indian processed milk market.

India continued to be the largest milk-producing nation in 2011-12 with an estimated production of 127 million tonnes. This was close to 17 per cent of world milk production.

Source: National Dairy Development Board

 Primary dairy market consists of milk and milk products derived directly from milk.  Secondary dairy market consists of processed dairy products and products consumed with milk

Primary Dairy Market Secondary Dairy Market

•Milk •Dairy Whitener •Curd/ Yogurt •Infant Nutrition •Butter •Malt based health drinks •Ghee (Clarified butter) •Ice cream •Cottage Cheese •Cheese

The dairy sector in India ranks first in terms of processed food, with 37% of the produce being processed.

 India's unique pattern of production, consumption, processing and marketing of dairy products consist of over 14 million farmers organized into 140,227 village Dairy Dairy Cooperative Societies (DCS) Co-operatives

 These cooperatives form part of a national milk grid which links the milk produc-

ers in 177 milk unions throughout India with consumers in more than 700 towns and cities and operates in over 346 districts handling about 21.1 million litres of milk per day.

Key Points

 The value added dairy products such as yogurt, paneer (cottage cheese), cheese, ice cream and baby food to grow at a CAGR (compound annual growth rate) of 20 to 30 per cent in the next four to five years.  Organized retail selling of value-added dairy products and the food service segment have helped the sector grow.

 Of the top 20 dairy companies in the world, six have already set foot in India  The growth of food and coffee chains such as Cafe Coffee Day, Pizza Hut, Dominos, KFC and McDonald’s are expected to help increase the consumption of value-added dairy products.

Source: Rabobank Survey

3.2.1 Market for Foreign Dairy Players

Expecting fast growth in value-added dairy products such as cheese, yogurt and milk, foreign entities have started looking at India as a dairy product market. Of the top 20 dairy companies in the world, six have already set foot in India in some way or the other and many others are gauging the market, considering options to enter, although the Indian market is very complex.

 Partnership model with local players, and not opt for direct procurement from farmers

Preferences  Focus on high-end value-added products like flavored yogurt, which is very popu- of Foreign lar in the international market.

entrants  Most foreign players are not keen on backward integration. They prefer tying up with local players for production and focus on marketing and distribution

For example:

 Apart from Danone Food and Beverages (India), no one has yet set up production base in India. Danone, is still outsourcing parts of its production

 New Zealand-based cooperative dairy giant Fonterra is keen to work with Indian local industry in a bid to establish its presence in the region and to meet the strong consumer demand for quality dairy products. Last year, Fonterra announced its first operating office in New Delhi to advance its relation with India.

Opportunity

 Foreign players can enter into a Joint Venture (JV) with an Indian company to improve farm management practice.

 As a part of JV mentioned in farm related/procurement related, players could also invest in the supply chain infrastructure to ensure availability of high quality milk on a sustainable basis.

 Setting up own procurement network is not only costly but also time consuming for any foreign player entering India. It is therefore advisable to have a local partner to enter India to ensure consistent supply of raw milk to the dairy plant

vegetables in light of nutrition security, growing interest of food processors and more profitable land use has brought in a significant change in the outlook of the producers who started using the arid/semi-arid lands and horticultural crops that have lesser demands on water and gives three to four times more remuneration than field crops

3.2.2 Total Indian Imports

Imports of dairy products to India from the world have been very volatile over the last 3 years. Major imports to India from the world in the year 2011-12 were Milk (USD 147 Million) followed by Buttermilk (USD 20 Million), butter, cheese (USD 10 Million).

Indian imports of Dairy Products from the world (as per HS Codes & Description)

Milk cream, nei- Buttermilk, Butter and Milk cream, Whey, Cheese ther concentrated cream, other fats & Year concentrated or natural and curd nor sweetened yogurt etd. oils derived sweetened (402) milk (404) (406) (401) (403) from milk (405) 2007 67 2,711 289 4,090 2,371 4,105

2008 339 3,149 485 4,287 1,928 4,988

2009 213 8,919 835 5,051 43,941 4,435

2010 160 91,015 552 11,332 73,900 6,819

2011 273 147,209 332 19,777 2,382 7,418

All figures in USD '000

Source: UN Comtrade

Composition of India's Dairy Imports: 2011

Natural Milk Cheese and Curd; Butter and other Products; 11.10% 4.20% fats and oils derived from milk; 1.30%

Buttermilk and Yogurt, 0.20%

Milk and Cream, Not concentrated or Sweetened, 0.20%

Milk and Cream, Concentrated or Sweetened; 83%

3.2.3 Major Players

Major Dairy Food Companies in India

Company Brands Major Products

Sweetened condensed milk, malted Milkmaid, Cerelac, Lactogen, Milo, Nestle India Limited foods, milk powder and dairy whiten- Everyday er

Ghee, ice-cream, and other milk Milkfood Limited Milkfood products

Malted milk-food, ghee, butter, pow- SmithKline Beecham Limited Horlicks, Maltova, Viva dered milk, milk fluid and other milk based baby foods.

Condensed milk, skimmed milk pow- Indodan Industries Limited Indana der, whole milk powder, dairy milk whitener, chilled and processed milk

Gujarat Co-operative milk Marketing Butter, cheese, and other milk prod- Amul Federation limited ucts

Farex, Complan, Glactose, Bon- H.J.Heinz Limited Infant milkfood, malted milkfood niemix, Vitamilk

Flavoured milk, cheese, milk powder, Britannia Milkman ghee

3.3 MEAT AND POULTRY

The Indian meat & poultry sector is emerging as an important growth leverage of the Indian economy. The meat production in 2012-13 was approximately 5.9 million tons as compared to 5.1 million tons in 2011-12 Among the meat-producing sector, poultry is the fastest growing segments. Indian poultry sector has been growing at around 8-10% annually over the last decade with broiler meat volumes growing at more than 10% while table egg at 5-6% driven by increased domestic consumption

Buffalo meat production has been growing at a relatively less rate at a CAGR of about 6%. Meat is primarily exported to the Philippines, Malaysia, West Asian Countries like the UAE, Saudi Arabia, Qatar, Oman etc., African and CIS countries

 India has a processing capacity of approximately 25,000 birds per Poultry hour Processing  Average utilization is around 30% Capacity  Several of the operating units are run by small and unorganized players

Key Points

 Domestic poultry meat production (broiler - carcass weight) is estimated to have increased from less than 1.0 million tons in 2000 to 3.5 million tons in 2013 and is expected to reach 6 million tons in the next 3 years

 Table egg production is estimated to have increased from 30 billion eggs in 2000 to 66 billion eggs

in 2012 with per capita egg consumption increasing from 28 to 55 eggs during that period.

 South India accounts for about 45 per cent of the broiler meat production across the country while Andhra Pradesh also known as 'chicken bowl of India' accounts for about 20% of the total broiler meat production in India.

 Large integrators as well as Government bodies are investing and promoting increased processing of poultry products (in form of frozen/chilled chicken and further processing in form of ready to

cook/eat) given increased acceptability of processed chicken in domestic market though 92-93% of domestic purchases are still through wet market due to traditional preferences.

 Increasing penetration of QSRs (Quick Service Restaurants), continued increase in proportion of working women, changing lifestyles with preference towards convenience food and higher purchasing power are expected to provide strong growth push for processed poultry industry in long term.

Opportunity

 There are opportunities for private and foreign investors in broiler processing as in many parts of India broilers are still slaughtered manually and sold in small neigh- borhood shops.

 There is scope for safe storage of broiler meat through low-cost technologies

 There is also an opportunity in the retail sector as there is a demand for processed and packed meat which is considered safe, hygienic and fresh by the young consumers

3.3.1 Total Indian Imports

India's import of meat and edible meat offal from the world have been very limited. Indian imports have increased from 2010 to 2012 howveer it remained almost stagnant over the past years i.e. 2012- 2014.

Indian imports of meat & edible meat offal from the world

Imports in USD Million

4.67 4.83 4.74

1.14 1.43

2010 2011 2012 2013 2014

Source: Apeda, DGFT

3.3.2 Major Players

Frozen Poultry & Meat Companies

Companies Key Brands Key Products

Innovative Foods Ltd. Sumeru Frozen Foods Seafood

VH Group Venky's Processed chicken, poultry feed, egg powder

Yummiez, Godrej Real Animal feeds, branded chicken, innovative agri- Godrej Agrovet Good Chicken products & oil palm

Al Kabeer Exports Limited Alkabeer Frozen mutton, beef, chicken

Frigo Refico Allana Allana Frozen buffalo and other meat

Allanasons Allanasons Frozen halal buffalo meat

Suguna Poultry Farm Suguna Broiler chicken, value added eggs

Darshan foods Meatzza Processed chicken, pork, mutton/lamb

All India Broiler Farmers' Bromark Broiler chicken Marketing Cooperative Ltd

John Keells (Sri Lanka) Keells, Krest Processed meat

3.4 MARINE PRODUCTS

Growing at a compound annual growth rate (CAGR) of about 7 per cent, India’s marine and fish industry is the second-largest fish producer in the world after China. Fish production in India was 9.58 million tonne in 2012-13 and India was second after China in total world’s fish production.

Over 8,000 km of coastline, four million hectares of reservoirs, two million hectares of brackish water and nearly 51,000 sq km of continental shelf area offers a plethora of opportunities for growth of the marine and fish industry of India

The range of processed products being presently produced in India include frozen breaded and battered shrimp, IFQ products (individually quick frozen), accelerated freeze dried (dehydrated) products. The production of processed or value added product are less than 10%.

Key Points

 Global Position - 3rd in Fisheries, 2nd in Aquaculture

 Contribution of Fisheries to GDP (%)1.07  Per capita fish availability (Kg) 9.0  Annual export earnings (billion) 1.1  Employment in the sector (million) 14.0

India is slowly moving toward modern techniques of fish processing and has world-class seafood factories following quality control procedures meeting the most stringent of international standards. Though shrimp continues to dominate the export basket, the Indian seafood industry has diversified its product range and its markets

 The seafood-processing sector is products have been updated in almost entirely export-oriented, line with the export market with very little produce making requirements and follows its way onto local markets. GMP and HACCP protocols for adhering to international qual-

ity standards at present.  One of the major challenges

faced by the seafood exporters  This has created demand for in India are the progressively latest technology in the pro- stricter food safety require- cessing segment as Indian ex- ments in major industrialized porters have to follow interna- countries. tional laws regarding sanita- tion and hygiene in the sea-

 Indian regulatory controls on food processing chain. hygiene in the production and processing of fish and fishery

3.4.1 Total Indian Imports

India imports of Aquaculture or marine products in the year 2011-12 mainly constituted of Fish followed by Shrimps, Lobsters & Crabs. The imports have increased with a CAGR of 36% over a span of 5 years i.e. from 2007- 08 to 2011-12.

Indian imports of Marine Products from World

India - Imports from World (in USD Million)

112.44

57.10 56.80 38.62 24.53

2007 2008 2009 2010 2011

Source: UN Comtrade

3.4.2 Major Players

Some key Indian players operating in this segment are provided below

Companies Key Brands Key Products

Allanasons Allanasons Pomfrets, Seer fish, squids, prawns, and cuttle fish

Bell Foods Marine Division Bell Foods Crab, cuttlefish, shrimps, squid, fish

Alliance foods Frish Cambay tiger prawns

Asf Seafoods ASF Seafoods Seafood

Deep Sea Products Deep Sea Products Marine products

Gadre Marine Exports Gadre Marine Fish Products, crabs, shrimps, lobsters

IFB Agro Pvt. Ltd. IFB Pomfrets, crabs, prawns and seafood

Sea Sparkle Sea Sparkle Octopus, squid, crabs and tuna

Okk Fresh Okk Fresh Pomfrets, crabs prawns and octopus

Innovative Foods Ltd. Sumeru Pomfrets, crabs, prawns and seafood

3.5 GRAINS

The major food grains produced are paddy, wheat, maize, barley, jowar, bajra, and ragi. India is the second largest producer of the wheat and rice in the world. Wheat and rice together constitute the major staple diet of the entire population of the country. Therefore, rice and wheat processing is the most important activity in food grains processing.

More than 65% of the wheat is converted into wheat products such as atta, together by organised and unorganised sector. Rice is consumed primarily in the form of polished rice, parboiled rice, parched rice and flaked rice whereas the demand for branded rice (particularly basmati rice) is increasing at both the domestic as well as the export market.

Key Points

 India produced more than 265 million tons of different food grains during 2013-14.

 Wheat and rice together constitute the major staple diet of the entire country. Therefore, rice

and wheat processing is the most important activity in food grains processing  There are 10,000 pulse mills in the country with milling capacity of 14 million tons.

3.5.1 Major Players

Some Key Manufacturers - Staples

Companies Key Brands Key Products Hindustan Unilever Ltd. Annapurna Wheat Flour

Wheat flour, rice, gram flour, corn flour, pulses, Shakti Bhog Foods Ltd. Shakti Bhog porridge ITC Aashirvaad Wheat Flour Capital Foods Agro Pure Flour, lentils, besan Kohinoor Foods Ltd. Kohinoor Rice Rajdhani Group Rajdhani Besan, pulses, maida, sooji

India rice, sugar, soybean meal, tea, wheat Shri Lal Mahal Shri Lal Mahal grains, salt, corn/yellow maize, sesame seeds

Groundnut oil, mustard oil, refined vegetable Amul Dhara oil, refined sunflower oil, refined soya bean oil

Marico Limited Saffola Refined oil and salt, Wheat Flour

Amira Foods Amira Rice

Neesa, Indian Star, Himalayan Bush Foods Rice Crown, Platinum Star

Noor, Viva, Highland, Indira, Mas- Best Food International Rice ter Food, Bukhara, Shudh

Tilda Ltd Tilda Rice Lal Qila Lal Qila Rice Jagat Ago Jagat Rice Sunstar Overseas Hello Rice LT Foods Ltd. Daawat Rice KRBL Ltd. India Gate Rice

3.6 CONSUMER FOODS

This segment includes packaged foods, aerated soft drinks, packaged drinking water and alcoholic beverages.

The food and beverage companies have reported a good financial performance in FY12. All the major

companies grew in double-digits backed by price-hikes and healthy volume growth. Nestle, Britannia and

ITC each recorded growth of around 20%.

Beverages

India is amongst leading consumers of soft drinks in the Asia Pacific. Growth in the market has been mainly spurred by investments made by foreign investors.

The branded tea segment in India is valued at USD 960 million. With growing affluence of Indian consumers, a few segments such as premium and organic coffee and green-herbal tea have created early inroads into the market.

Packaged milk segment in India is projected to grow

from USD 7.76 billion in 2014 to USD 32.9 billion1

by 2030, registering an annual growth of 8 per cent.

3.6.1 Packaged / Convenience Foods

India’s packaged food industry, including snacks and ready-to-eat foods is currently valued approximately USD 37.5 billion and is further estimated to reach USD 65.41 billion by 2020

Source: Associated Chambers of Commerce and Industry of India (Assocham).

The main categories of packaged food are

 Bakery products  Canned or dried processed food  Frozen processed food  Meal replacement products and condiments.

1 Source: Economic Times Press Release 2013

Some emerging new categories in this segment are processed dairy products, frozen ready-to-eat foods, diet snacks, processed meat, probiotic drinks.

"Packaged food market is set to grow in India at the fastest rate on the back of robust demand from across rural and urban areas. Instant mix products such as gulab jamun, curry paste is a major hit among the masses. We are seeing around 20 per cent year-on-year growth in instant food mix category. Rural people also find these products economical and a lifestyle statement"

Managing Director Nilon Enterprises (manufacturer of consumer foods)

Key growth drivers are:

 Increase in nuclear and double households seeking convenience

 Increasing penetration of organised retail in rising awareness and availability

 Changing urban lifestyle (awareness and adoption of western living and eating habits) as well as larger freezer space in refrigerators

 Ease of "preparing" snacks, which are otherwise difficult to prepare at home, e.g. samosa

 Increasing concern of preference for hygienic food options, especially in non-vegetarian

 Rising NRI/ Expatriates/ Students studying abroad, and tourist traffic

 Growth in HORECA (Hotel, Restaurant and Catering) segment

The advanced and improved technology in packaging helps in keeping the nutritional value of the foods intact.

In a recent survey conducted by Assocham, it was revealed that 82 per cent of work- Survey force prefers packaged food compared to eating outside food or roadside eateries, in some of the key metros.

Key challenges faced by this sector are:

 The Indian society is by and large consumer of fresh products  Lack of cold-chain storage and display areas with retailers  Reluctance of organized retailers in selling non-vegetarian products  Availability of fresh vegetables across the year  Almost all major food outlets in urban centers offer home delivery service

Frozen Foods

The estimated market size of the frozen food industry in India is USD 330 million

Frozen Vegetables and frozen snacks together contributed Packet size of 300-500 Gram is the most popular more than 65% of market share for the year 2012 and it is range in all the segments. Whereas second most expected to increase further to approx 75% by 2017.Frozen popular range is 0-300 Gram in all the segments Vegetables and frozen snacks together contributes more except frozen fish/seafood products. than 85% volume share.

From a frozen food perspective, the challenge is definitely two-pronged and

in multiple proportions.

Poor infrastructure – roads and Ineffective Management power Practices

Lack of integrated strong cold chains and poor warehousing facili- Underdeveloped and inefficient

ties supply chain

Rocking Snack

French fries, or fried potato slices, is KFC and McDonald's say French fries is among their top three billing now perhaps the fastest-growing items or the largest selling side-dish, while retail chains such as Big snacks, not just in fastfood chains Bazaar and Spencer's Retail say frozen ready-to-eat French fries is among such as McDonald's and KFC but for their largest selling snack items as it replaces other popular potato modern retailers and frozen food basedsnacks like aloo paratha, vada pav or pakoras in the urban makers too, growing at an annual households. rate of more than 30%.

Even frozen food marketers such as McCain Foods now identify French fries as their top-selling product in the country

"Potatoes are a quintessential part of the Indian eating habit, which is where French fries fit in... they are easily sharable and dippable in ketchup or other condiments, which is inherently how we snack"

Tarun Lal, General Manager KFC (India & Asia)

 French fries due to its populairy, is leding to a reverse category creation, entering Indian homes from fast food joints since it is easy to cook. It is also emerging as an alternative to current snacking for kids at home, replacing chips and noodles.

 French fries has emerged as the new-age avatar of 'pakoda' in convenience food category, much like chocolates are replacing ladoos in gifts.

Key Points

 According to retailers, sales of frozen French fries of brands such as McCain, Sumeru and Al Kabeer are growing anywhere between 30%-40% in their chains. French fries now account for

almost 70% of the retailer's potato-based frozen snack sales.

 Canadian firm McCain Foods, the world's largest maker of French fries and assorted potato snacks, says friesalong with potato smiles are its fastest moving products in India.

 Food that cooks fast and doesn't compromise on taste has played a huge role in driving the category. Growth of products such as fries in India is being driven by factors such as consumer awareness, taste and freshness, and higher freezer penetration at retail stores.

Total Indian Imports

Major imports of consumer foods that are imported in India from the world are sugar & sugar confectionary products, followed by Cocoa & Cocoa preparations.

Figures in USD Million Indian imports of consumer products from the world (as per HS Codes & Description) Prep of cere- Prep of meat, fish or Sugar & Sugar Cocoa & Co- al, flour, Miscellaneous crustaceans, molluscs confectionery coa prepara- starch/milk, edible prepara-

(16) (17) tions (18) pastry cooks tions (21) (19) 2010 3.7 1,036.20 115.2 37.2 80.4 2011 4.9 124.1 179.7 42 108.3 2012 5.37 145.67 194.8 44.43 113.7 2013 4.16 642.55 192.79 39.55 122 2014 3.78 474.65 176.88 44.51 115.3

Source: UN Comtrade/ DGFT

Key Players of Frozen Food Segment

Key Players-Frozen Food

Company Brand Name Categories

Al Kabeer Exports Pvt. Ltd. Al Kabeer Processed Vegetables, snacks, and Indian breads

Suguna Chicken, Suguna Poultries Suguna Home Bites, Non-veg meals/ dishes, snacks, and non-veg Suguna Anytime

Mother Dairy Fruits & Veg- Safal Processed vegetables, dishes, snacks and non-veg etables Ltd.

Innovative Foods Ltd. Sumera Non-veg dishes, snacks, and non-veg

Venky's India Ltd. Venky's Non-veg dishes, snacks, and non-veg

MTR foods ltd. MTR Vegetarian meals/ dishes and snacks

McCain foods India Pvt. McCain Snacks Ltd. Temptation Food Ltd. Ever Fresh Delika Processed vegetables Yummiez, Real Good Godrej Tyson Foods Processed vegetables, snacks and non-veg Chicken Kohinoor Foods Ltd. Kohinoor Indian breads and snacks

Major Manufacturers of Processed/Packaged Foods

S.No Company Name Website

1 ADF Foods Limited www.adf-foods.com

2 Allanasons Limited www.allana.com

3 Amalgam Specialty Foods (India) Private ltd www.amalgamfoods.com

4 Britannia Industries Limited www.britannia.co.in

5 Cadbury India Limited www.cadburyindia.com

6 Capital Foods Limited www.capitalfoods.co.in

7 Cremica Foods www.mrsbectorfoods.com

8 Dabur India Limited www.dabur.com

9 Dr. Oetker India Private Limited www.oetker.in

10 Everest Spices www.everestspices.com

11 Godrej Hershey www.godrej.com

12 Haldiram Exports Private Limited www.haldiram.com

13 Harvest Gold Industries Private Limited www.harvestgold.in

14 Heinz India Private Limited www.heinz.co.in

15 Hindustan Unilever Limited www.hul.co.in

16 Indo Nissin Foods Limited www.topramen.in

17 ITC Limited www.itcportal.com

18 Kohinoor Foods Limited www.kohinoorfoods.in

19 Mahashian Di Hatti Limited www.mdhspices.com

20 Marico Limited www.marico.com

21 McCain Foods India (Private) Limited www.mccain.com

22 MTR Foods Private Limited www.mtrfoods.com

23 Parle Products Limited www.parleproducts.com

24 PepsiCo India Limited www.pepsicoindia.co.in

25 Rajdhani Group www.rajdhanigroup.com

26 Surya Food & Agro Limited www.priyagold.com

27 Tata Global Beverages Limited www.tataglobalbeverages.com

28 Vadilal Industries Limited www.vadilalgroup.com

29 Venkys (India) Limited www.venkys.com

30 Venkataramana Food Specialties www.venkataramanafoodspecialities.com

3.6.2 Ready to Eat (RTE) Segment

The growing number of nuclear families, an increase in household incomes and a significant rise in the number of single working men and women in the past decade, have opened opportunities in the RTE segment.

This is further aided with the penetration and availability of a wide variety of ready to eat products in different packaging formats at various retail points. All these factors are indicating towards the bright future of the Indian ready to eat market in the coming years.

Reasons for Market Penetration

Global Indians Migrant working

NRIs population

Indians look for traditional Need for on-the-go products

home cuisine abroad Convenience is priority

Busy Schedule Less time West- Improved standard of living

ern Influence Dual-incomes

Urban Lifestyle More Income

Indian brands are set to continue leading ready meals during 2013. The key brands in the category are MTR, Kitchens of India, Haldiram’s, Al Kabeer, Sumeru and Kohinoor. MTR is set to maintain its leading position in canned/preserved ready meals with a value share of 52%, followed by ITC with a value share of 30% and Kohi- noor Foods Ltd with a value share of 8%. In frozen ready meals, meanwhile, Al Kabeer Exports Pvt Ltd main-

tained its leadership with a value share of 31% during 2012, while Innovative Foods Ltd retained its second position with a value share of 23%.

Consumer Needs Consumer Preferences  Tasty & Healthy  Prefer -New Innovative Products

 Rapid Cooking  Need - Wider Food Choice

 Handy packaging  Concern - Freshness & Availability

 Convenient (Quick Preparation)  Foods - Free of Spoilage

Ready-to-eat Classifications

Type Categories Example Primary Customer Type

Rajmah Chawal, Dal RTE Ambient (Heat and Meals/ dishes and snacks Makhni, Chicken Curry Retail/ Exports Eat) (Veg and Non-Veg) etc

Frozen (Heat/ Fry/ Retail/ Institutional/ Processed vegetables Peas, Carrots, Corns etc Cook) Exports

Samosas, Rolls, Chicken Snacks(Veg & Non-Veg) Nuggets, Kebabs etc

Meals/ dishes (Veg & Non- Frozen Paneer Makhni veg)

Seafood- Fish fillets; Non-Veg Non-Sea Food-Frozen Chicken etc

It is estimated that the mixes food market ss USD 1.8 billion till 2014.

Ready meals are expected to continue recording strong growth during the forecast period, increasing in 45 constant value at a projected CAGR of 9%.

Source: T&A Reports

Imports

Countries of import Brands

US Orgran, Roland

Australia Massel

UK Batchelors

Opportunity

 The burgeoning ready-to-eat (RTE) segment in India is creating an opportunity for bio ingredient and spice extract players.

 The young Indian market for products like Pasta is constantly growing due to increasing popularity of western lifestyle, which cannot be ignored. RTE Pasta presents huge opportunity for international players

 A rising working class in India means Ready-to-Eat opportunity especiallyfor ready

meals like Rice, curry, Lentils etchree to four times more remuneration

than field crops

Aiming to garner a higher share of the Indian ready-to-eat (RTE), frozen foods markets, McCain Foods is further strengthening its product range to cater to Indian tastes and sensibili- ties.

Domestic Players in Ready to Eat (RTE)

Company Brand MRP Website

Rs. 40 to Rs. 115 ITC Ltd. Kitchens of India www.itcportal.com (285 gm)

Kohinoor India on Rs. 55 to Rs. 65 Kohinoor Foods Ltd. www.kohinoorfoods.in Platter (300 gm)

Venky's India Ltd. Venky’s Rs. 80 to Rs. 220 www.venkys.com Gits Food Products Pvt. Ltd. Gits Rs. 32 to Rs. 71 www.gitsfood.com Ashoka Truly Indian ADF Foods Ltd. NA www.adf-foods.com Khansaama ADF Soul Godrej Tyson Foods Ltd. Yummiez Rs. 100 to Rs. 170 www.godrej.com Haldiram Manufacturing Haldiram’s Rs. 43 to Rs. 114 www.haldiram.com Company Pvt. Ltd. Ushodaya Enterprises Pvt. Ltd. Priya Rs. 60 www.priyafoods.com MTR Foods Pvt. Ltd. MTR Rs. 35 to Rs. 80 www.mtrfoods.com Tasty Bite Eatables Ltd Tasty Bite Rs. 200 www.tastybite.com Fazlani Exports Pvt Ltd Fazlani Rs. 40 to Rs. 135 www.fazlani.com Dharampal Satyapal Ltd. Catch Rs. 45 to Rs. 130 www.dsgroupindia.com

Capital Foods Ltd Ching’s Secret Rs. 40 to Rs. 120 www.capitalfoods.co.in

Dabur India Ltd. Dabur Hommade Rs. 20 to Rs. 48 www.dabur.com Suguna Home Suguna Poultry Farm Limited. Rs. 87 to 122 www.sugunapoultry.com Bites

Foreign Players in the Ready-to-eat Industry in India (manufacturing in India)

Company Brand MRP Website

Dr Oetker India Fun Foods Rs. 79 to Rs.119 www.oetker.in Hindustan Unilever Brown & Polson Rs. 21 to Rs. 35 www.hul.co.in Pillsbury Rs. 48 to Rs. 355 General Mills India www.generalmills.co.in Betty Crocker Rs. 175 to Rs. 230 Heinz India Private Kitchen Classics Rs. 95 www.heinz.co.in Limited McCain Foods Rs. 35 to McCain www.mccainindia.com India Pvt. Ltd. Rs. 190

4.0 Market Trends & Key Drivers

4.1 MARKET TRENDS

Supported by young population and changes in the food consumption pattern there is a shift from simple grain based diet to a diet which includes more vegetables, eggs, milk, fruits and meat, especially among the middle class.

Another trend visible of late is the increasing demand for convenience items such as semi cooked ready-to-eat, ready-to-cook meat food products. Some frozen meat and poultry products are already available in the market and their demand is increasing.

India's fast-food industry is expected to grow to USD 1.12 billion between 2013 and 2016, largely driven by demand from smaller cities.

Notable trends in Indian Food Industry

Changing consumer Entry of interna- Rising business and Rising demand on tastes tional companies product innovation Indian products in international market

 Wide array of  Liberalisation and  Companies have  Strategic geograph- products, coupled growth of organised been moving up the ic location and con- with increasing retail have made value chain; for ex- tinuous increase in global connectivity the Indian market ample, cooperatives production of raw has led to a change more attractive for are transitioning materials helps In- in the tastes and global players from being pure dia to supply preference of do- producers of milk cheaper products to mestic consumers  With a large agri- to offering a wide other countries culture sector, range of dairy  This trend has been abundant livestock, products  India’s exports of bolstered by rising and cost competi- processed food and incomes, increasing tiveness India is  Firms, both domes- related items rose urbanisation, a fast emerging as a tic and global, have at a CAGR of 27.3 48 young population, sourcing hub of been focusing on per cent during and the emergence processed food product innovation FY08–12 of nuclear families to cater to domestic tastes, while also

4.2 INTERNATIONAL FOOD & TRENDS

In recent times, the palate share of the urban Indian is still predominantly Indian, but the wallet share is becoming generous towards imported food products.

It is estimated that by 2015-2016, the share of the rich (households withannual income above USD 24,000) will rise from negligible to about 13 per cent. Consumption is driven by the age group in the range of 25-55.

The market for high end imported food products is estimated at over USD 5 billion per annum with nuts, dried and fresh fruits accounting for nearly half of it and is growing at over 20 per cent per annum with certain categories growing at over 40 per cent. However, the market was hit badly due to the stringent labeling norms in India, where majority of the imports were struck in India.

Growth of Some Imported Food Categories

Category Major source of Imports Growth p.a.

Pasta Italy, Canada, Japan, Indonesia, Mexico, Singapore, UAE 30 %

Cereal products USA, Germany, Australia, UAE, UK 70%

Olive oil Italy, Spain, Turkey, Greece 60%

Wine Australia, France, Italy, USA, Chile, South Africa 100%

Switzerland, China, Taiwan, Argentina, Germany, UAE, Chocolate products 25% USA, Belgium

The sales at fine food and Gourmet stores in India like Godrej Nature's basket, Food Hall, Le- Marche reflect increasing demand for specialty imported foods fuelled by a growing middle class and rising disposable incomes

“There is an increasing demand for new varieties. Right from American to European foods to even newer

cuisines like Japanese and wasabi paste, wasabi peas and the traditional soba noodles, all are finding great

acceptance among Indians”

Punit Gupta, CEO L-Comps and Impex Pvt. Ltd ( one of the largest importers of pasta, cheese and sauces and pastes in India)

Apart from the high volume driven categories in the gourmet space, there are newer products and categories that are being rapidly adopted by the Indian consumer.

Indian Import Basket 2012 (USD million)

2500 2281

2000 1856

1500

1000

500 171 104 89 25 1.8 18 0 Wine Meat Dairy Vegetables Fruit & Nuts Tea & Cereals Packaged Coffee Food

Source: UN Comtrade

How is the Business Conducted?

To fulfill this increasing demand, there are many third-party importers already bringing in international food and thereby facilitating ease of availability. These Importers have paved the way for a number of brick and mortar, gourmet- retailing concept across India.

Sales are no longer restricted to only selected retail stores across the country. Today, almost all stores ranging from small departmental stores to big retail chains sell imported food products

Gourmet-focused retail chains are also expanding in a market which includes names such as Nature’s Basket, Nuts & spices, Foodhall, Le Marche etc.

The rise of the online gourmet retail space is another indicator of consumers adapting to newer tastes and lifestyles and include names like the gourmetbox.in , yzury.com, deliciousnow.com

Some Key Players & Their Import Trends

Key Player Import Activity

Supplies to 1,000-1,500 modern retail stores and 7,000 traditional retail stores across India. L-Comps and Impex It imports close to 700 items now compared with some 200 five years ago.

Has tied up with Waitrose, a supermarket chain in the UK, for specialty Ashman(HyperCity Retail) foods

Spencers Imports directly exclusively for its retail chain

Has a sourcing team that tracks food trends around the world to make Godrej Natures Basket sure the latest products are available at its outlets.

A store that imports organic products from about 22 German and Austri- Organic Haus an brands

Key Points

 Over the years the kind of food consumed by Indians has undergone an incredible transformation. The gourmet retail space has witnessed rapid expansion in the past five years, and seen a strategic shift from traditional , Low cost products to premium offerings like Washington apples, Australian Kiwi fruit, Swiss chocolates, French cheese and Italian pasta, Chocolate, cookies, juices, pasta, olive oil, honey sauces and salad dressing and certain fruits

are the major categories constituting the bulk of the government market in India. Apart from these categories, ingredients such as truffles, artichokes, asparagus, Australian lamb and Norwegian salmon have also found their way into the Indian food and beverage space.

 Hotels and restaurant are the other major consumers of gourmet food products in India

offering seasoned international variants such as peking duck with ossetra caviar, Kanzuri shrimp, Jamolberico Pata negra(a gourmet ham sourced from acorn-fed pigs) and contemperoary sushi in an increasing number of fine-dining, specialty restaurants such as Hakkasan, Le Cirque, Megu, B Bar, etc with more set to enter the market.

 With rapid urbanization and changes in eating habits, sauces and condiments have begun to occupy substantial shelf space in Indian gourmet outlets. While mayonnaise, ketchup, and olives are the most popular, others such as Chili, soya, gherkins, etc have also gained wide acceptance. The growing demand for sauces and condiments come from both individual customers as well as institutions such as hotels, restaurants and clubs. Heinz, Tabasco, Remia,

barilla and Pergo are some of the famous imported brands.

List of Major Importers/Distributors

List of top 20 importers of processed food is provided below.

S. No Name of Importer Website Categories Imported

1 Agro Tech Foods Private Ltd www.atfoods.com Cooking Oil

2 Chenab Impex www.chenabimpex.com Gourmet Food

3 Dalmia Continental Private Ltd www.dalmiaglobal.com Wellness Food

Confectionery, Chocolates,

4 Dugar Overseas Private Ltd www.dugaroverseas.com Biscuits and Juice Products

Cheese, Charcuterie and

5 Fortune Gourmet Specialities Private Ltd www.fortunegourmet.com Processed Meats

6 General Mills India Private Ltd www.generalmills.co.in Ice Cream & Flour

Inducia Food & Beverages International Dairy, Cheeses, Bakery,

7 www.inducia.com Pvt Ltd Pastry, Fruits & vegetables Food and Beverages, Confec- tionery, Branded FMCG

8 L-Comps & Impex Private Ltd www.lcomps.com Products, Cheese and Meet Products

9 Max Foods www.maxfoods.in Food and Beverages

10 R. R. Oomerbhoy Private Ltd www.rropl.com Cooking Oil

11 R.R. Trading www.rrtradingco.com Sauces & Salad Dressings

Cheese, Cheese Spread,

12 Rai and Sons Private Ltd www.raifoods.com Lozenges, Olive oil, Ice Cream Sauces, Condiments, Vine-

13 Rodaa Ji Company www.rodaaji.com gars, Pasta, Olives & Olive Oil, Mushrooms and Truffles

14 Saksham Impex www.sakshamimpex.com Food & Beverage Products

15 Shahi Foods www.shahifoods.com Food & Beverage Products

Confectionery, Chocolates,

16 Sripati Marketing Private Ltd www.sripati.co.in Biscuits & Cookies

17 Suresh Kumar & Co. Impex Private Ltd www.skco.in Processed Food Products

18 Tajir Private Ltd www.tajir.com Imported Food Products

Beverages, Food, Health And

19 V&V Beverages Private Ltd www.vnvbeverages.com Beauty Products

20 Vriddhi Speciality Foods Private Ltd www.vtco.in Food & Beverage Products

4.3 DEMAND DRIVERS

Increased spending on health food

Increase in Nuclear families and working women

Demand for functional foods (growth in the specialty food and beverage (F&B) space) DEMAND

DRIVERS Organised retail and private label penetration

Changing demographics: Rise in disposable income

Increasing Urbanisation: Exposure to global cuisines and food habits

4.3.1 Rising Disposable Income

It is estimated that during 2013-2014, 55-60% per cent of Indian population were in the middle class category (households with annual incomes of USD 10,000 to USD 30,000); and the share of the rich (households with annual income above USD 30,000) was 4-5% of the total population. (Source: Housing Income Pyramid, GOI)

Rising Disposable Income

 Strong growth in per-capita income has resulted in greater demand for food items  Incomes have risen at a brisk pace in India and will continue rising given the country’s strong economic growth prospects. Nominal per capita income according to the IMF is estimated to have recorded a CAGR of 11.2 per cent over 2000–12  There has also been a shift in demand –  From carbohydrates to meat products (in line with the various phases of economic growth)  To convenience foods, organic and diet foods

4.3.2 Urbanization

Currently 29% of Indian population resides in urban areas and is expected to reach 32% by 2020. Urbanization and growing incomes are expected to have an impact on lifestyles and exposure to packaged foods. The rising need for convenience, along with the rise of lifestyle diseases could trigger huge demand for health and wellness products.

Urbanization

 Strong economic growth since the 1990s has led to–  Rapid urbanization and a growing middle class  Nuclear families and dual income households

 Young population and increasing media penetration, has led to a surge in demand for packaged food, alcoholic and non-alcoholic beverages, snacks, savories, etc

Urbanization in India

1400 Urban population growing at ~ 1.5 1200 433 times the growth 395 358 1000 321 of overall population 800 urban 600 rural 874 907 791 835 400 Urbanization to reach 32% in 2021 200 from 28% in 2006 0 2006 2011 2016 2021 Population in India (millions)

Source: Census

4.3.3 Organised Retail

The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for next formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

Western-styles malls have begun appearing in metros and second-running cities, introducing the Indian consumer to a shopping experience like never before.

The Retail sector of India is now among top five fastest growing markets globally and is expected to reach USD 1 trillion by 2020, from USD 600 billion in 2015. Significant part of this growth is expected through Modern retail i.e. through shopping malls, which is expected to increase by 22% by end of 2015.

India has 570 operational malls (as of May 2013) with a total area of 180 million sq ft compared to just 225 malls that were up and running five years ago2.

Brands owned by big retailers such as Future Group and Reliance Retail account for more than three-fourths of food products sold in modern trade in the country as consumers increasingly prefer lower-priced products to national brands.

Food Retail

One of the problems with food distribution in India is the neglect of retail, with the focus by and large being on the link between the producer and the wholesaler. Food markets have overlooked consumer needs. Organized retail can plug this gap and offer fair prices in the face of rising input costs. But to ensure that this segment buys from producers rather than wholesalers, infrastructure must improve.

Food and Grocery is the largest category within the retail sector with 60% share followed by Apparel and

Mobile segment. Organized retail is approx. USD 60 Billion in 2015 and is ex-pected to reach USD 180

billion by 2020.

Change in Supply Trend

SUPPLY GROWTH

Increased activity by domestic and international players has resulted in an increased availability of products, leading to a growth in consumption.

 Indian companies, who were earlier focused only on INCREASE IN THE DEPTH back-end processing and manufacturing, have extend- OF DISTRI- ed their activity into the processed foods space. BUTION  This shift has occurred due to the unavailability of such products in the market along with the potential to

earn higher margins by offering such value-added products.  Existing Indian companies have seen significant growth due to focus on, as well as reaching to new markets and consumers.

1 Source: Times of India- Media Releases 2013

Modern Food Retail

 For low-margin categories like food and grocery to flourish, retailers should have a certain scale of business - establishing a large scale needs time and deep pockets

 The hassles in getting property, permissions and licenses to open shops, along with some of the government laws for direct procurement, make it difficult for organized retailers to attain scale

 Some of the states do not allow direct procurement by the retailers from the farmers, due to the Agri- cultural Produce Market Committees (APMC) Act. Buying produce from the traders and other mid- dlemen makes organized retail less competitive in food and grocery.

 Inadequate investments and the lack of latest technology have been deterrents in the development of a full-fledged cold chain infrastructure across the country. This has resulted in higher wastage and limited availability of farm produce for organized retailers.

 Organized retail too has been focusing more on the front-end till now. Setting up a strong back-end and supply chain, especially for highly perishable commodities like food and grocery, needs considerable capital investment.

However, the growth of organised retail of food and grocery is imminent, considering the fact that across the globe, corporatized retail has played a key role in effectively bringing food and grocery to consumers.

Online Retail

India's online retail market for food and groceries is also expected to grow on the back of growing Internet and Smartphone penetration in India. This shift in consumer preference is due to competitive pricing and convenience of doorstep delivery.

A clear indication of this is increase in the number of online food and grocery retailing sites

from 14 in 2013 to 44 in 2014.

Some of the online retailers include: www.grofers.com, www.baniya.com, www.bigbasket.com, www.peppertap.com, www.localbanya.com, etc.

However, this is a recent trend and is limited to large cities.

5.0 Consumer Preferences

Indian consumers spend a large share of their income on food. Consequently, pricing is an important considera- tion when supplying the Indian market. In urban areas, the consumption of processed and ready-to-eat (RTE) or convenience food is higher due to relatively higher disposable incomes, exposure to a greater variety of processed foods, a preference for quick meals and familiarity to foreign foods or cuisines. Rural consumers tend to prefer traditional Indian foods prepared at home, but exposure to processed foods is increasing in rural areas.

Consumers want better and safer food products and are willing to pay a higher price for Engaging the goodness of health. This offers opportunities for product innovation, specialized prod- Consumer ucts and product extension for food processors

Demands for specialty and high value foods such as chocolates, cakes, pastries, imported fruits, juices, etc., peaks during the festive seasons, especially Diwali. This is also the best time to introduce new products to Indian food market.

India has a large and expanding young population with a median age of 26. With a growing number of middle- income consumers, increasing urbanization, increasing numbers of nuclear and dual-income families, steady transformation of the food retail sector, rising numbers of restaurants and fast food chains, and greater exposure to international products, India’s food consumption and expenditure habits are changing rapidly.

New Categories at Play  Shoppers are moving away from the traditional list of loyal

brands, and are willing to experiment with different brands in

certain categories. This signals a new competitive force for manufacturer brands.

 India is under-branded and under-penetrated in many categories. Hence opportunity for a company to build own brands for market and category development, leading to increase in consumption

Food Preferences  A very large portion of Indian population follows a strict vegetar-

ian diet in accordance to the tenets of Hinduism. Furthermore,

non-vegetarian food is not consumed during special days of reli- gious observances.

 Indians generally grow up eating fresh products, traditional in-

gredients and spices.

 Nowadays, the acceptance of packaged and ready to eat food is increasing, especially among the urban middle class.

 Specialty cuisine restaurants are also succeeding fairly in India.

Health Food  Healthy food is becoming a fast-growth category, particularly in cash-rich middle class Indian. Rising awareness and affluence have made health food products accessible to a larger segment of the population

 For example, Amul has introduced a range of functional products, from energy drink Stamina to Probiotic Ice-creams, Probi- otic Lassi and Curd, High Calcium Milk and Reduced Salt Butter. Frito Lay, the snack food division of PepsiCo was one of the first to do away with transfat and MSG across the entire range of its foods.

Convenience Food  For consumers, convenience is by far the most important dynamic, and will continue to be so over the next five to 10 years

 Changing lifestyles and the modified eating habits of India’s growing urban population have propelled processed food industry.

 According to a study, the Indian ‘Ready to Eat’ market is estimated to grow to USD 1.8 billion by 2015.

Food On The- Go Almost half of the Indian snack market is organized snacks cate-

gory. This category, growing at a healthy 30 per cent annually, is

sub-divided into the traditional segment (bhujia, chanachur), western segment (potato chips, cheese balls) and the newly established finger snacks segment, an adaptation of traditional of-

ferings to the western format.

Who is the buyer?

 The profile of shoppers in modern trade clearly reflects a higher living standard measure. This is one of the main reasons for the slightly more premium portfolio (in big chains)

 A mix of affluence and willingness to experiment in modern day consumer is an invaluable asset for all stakeholders. This can be useful in times of uncertainty like 2011 since the sharp increases in value growth indicates resilience amongst them

 Stronger purchasing power of modern trade consumers and wider product assortment at such chains en- courages impulse purchases and deal-based large-pack buys.

Key Points

 Consumers are purchasing larger packs, and more value-added products in modern retail since

they are showing a tendency to complete their monthly shopping in such stores.

 Healthy eating is another critically important consumer driver, a trend that has considerable

influence over company strategies.

 Healthy means different things to different people. Two important demographics that are

likely to have an impact on food production and shopping are baby boomers and those of all

ages who suspect food allergies.

 Living longer, fitter and still working, an aging population means grocery store shelves will

contain foods that come with added health claims. Shelves will have more products with glucosamine for joint health and foods with added omega-3 for brain and heart health

 At the same time, younger consumers with food intolerances will drive demand for gluten-free, nut-free or dairy-free foods in 2012

 Consumers who had embraced low-fat diets for years are returning to foods and beverages that feature the better-for-you fats

6.0 Distribution Channel

The food distribution channel is the path along which food products move from the producers or manufacturer to the end consumers.

The various stakeholders in this path apart from the manufacturer or the producers are agents/ brokers, wholesalers and importers in case of foreign manufactured food products.

In certain cases, the importer acts as the distributors for certain geography and has tie-up with other several sub- distributors for different regions. The sub-distributors also act as local point of contact with the ultimate point of sales i.e. the modern retail chains, mom and pop stores or the traditional grocery shops. Convenience stores and gas station stores such as “In and out” are also an emerging trend.

Currently, retailers have a preference for buying from distributors or wholesalers rather than directly importing products themselves. However, the distribution channels vary based on the type of product imported into India. Logistics in India is extremely underdeveloped. A lack of cold storage facilities and transportation means that some products get air-freighted in India, which is expensive. Large retail chains are trying to develop their own logistics and distribution channels to ensure products reach the end consumer in a good condition.

6.1 INTERMEDIARIES IN THE DISTRIBUTION CHANNEL

In India, most domestic and imported food and beverage products go through several intermediaries

Clearing and Forwarding Agents (CFA): They typically work with exporters to aid transactions with stockists (distributors). CFA will transport goods to stockists, invoice them and receive payments on behalf of the exporters.

Stockists: These are distributors that typically operate in their own exclusive geographical area. Stockists also usually have a sales force that works with wholesalers and large retailers.

Wholesalers: Wholesalers distribute products to rural retailers who are not large enough to purchase from stockists.

The domestic distribution channel of food in India follows a multiple level supply chain from 2 players to 6 players. The distribution channel of food industry in India has been described in the below exhibit.

Foreign Manufacturer Local Manufacturer

Importer Agents/Broker

Distributor & Sub-distributors

Wholesaler

Retailer

Consumer

7.0 Foreign Players

The availability of raw materials, changing lifestyles and relaxation in regulatory policies are driving the growth of processed foods industry, which offers tremendous opportunities for overseas players operating in the food industry.

We have provided below names of some popularly imported food brands into India.

Source of Food Indian Company Website Entry Route Country Category Partner Rai and Bel Fro- Import and Distribu- Sons Pri- www.bel-group.com France Cheese mageries tion agreement vate Lim- ited Import and Distribu- Narang Lindt www.lindt.co.uk Switzerland Chocolate tion agreement Group Ceres Fruit Import and Distribu- L'comps & www.ceresjuices.com South Africa Fruit Juice Juice tion agreement Impex North America General Hershey’s www.hersheys.com Chocolate 100% Subsidiary (USA) Mills Processed Import and Distribu- Mass Baronia Pasta www.pastabaronia.it Italy food tion agreement Impex Rai and Processed Import and Distribu- Sons Pri- Hero Jams www.farawayfoods.com Switzerland food tion agreement vate Lim- ited Rama Vi- Cusoor Olive Import and Distribu- coosur.com Spain Olive Oil sion Lim- Oil tion agreement ited

Hagen Dazs www.haagendazs.com US Ice Cream Subsidiary -

Dalmia Leonardo Import and Distribu- Continental www.pantaleo.it Italy Olive Oil Olive Oil tion agreement Private Limited

Some of the other foreign players who have recently entered the Indian food/food processing sector are provided below along with their mode of entry:

Fonterra (New Zealand)

Fonterra recently entered the Indian market by setting up a dairy farm in Andhra Entry Route Pradesh in the year 2011

Globally, Fonterra has three core brands - Anchor, Anlene and Anmum - producing powdered milk, ready-to-milk, yoghurt, cheese, butter and other dairy prod- Brands in India ucts that are exported to markets in the Middle East, Australia, Africa and Asia.The company has not revealed the brands to be sold in India, as of now.

Fonterra Co-operative Group Ltd has opened its first office in New Delhi, India

Current Business Mod- The company is looking to collaborate with the Indian local industry in a bid to el establish its presence in the region and to meet the strong consumer demand for quality dairy products.

Farrell Oil Company (Canada)

The company has collaborated with Jindal Retail in India. Jindal Retail will Entry Route manage the pan India distribution and online sales of the product.

Brands in India Farrell Canola Oil

Current Business Jindal Retail will launch the product under the ‘buy 1 get 1 free’ offer. It will be Model available for Rs. 425 for a pack of 1 litre.

Newby Teas Limited (UK)

Newby Teas entered the Indian market by establishing its subsidiary in India, as Entry Route Newby India Private Limited, in the year 2010. Until 2010, the company was operating in India as an Export Orient Unit (EOU).

Brands in India Newby Teas

The company entered the Indian market in the year 2010 and is headquartered in Kolkata. The company entered the Indian market with a focus to tap the hospitality, restaurant and catering industry. The company had plans to focus on the retail industry thereafter. Current Business

Model Newby Teasoperates in India through its regional offices in Mumbai, Delhi, Ban- galore and Chennai. They are also planning to expand their operations in Hyder- abad and other Tier II cities. The company controls and monitors the entire distribution and pan India logistics from its headquartersbased out ofKolkata.

Aurthr’s Food Company Private Limited ( Germany)

Arthur's Food Company is a German company based in Bangalore, India. Entry Route The company has a food processing plant in Bangalore where the machinery has been imported from Germany. The company imports meat for further processing.

Main products are cooked or smoked pork and chicken products. The brand name Brands in India is Bon Appetit The company is focusing primarily on the niche and premium market segment that comprises the hospitality, restaurant and catering industry in India. Besides, the company has recently launched its brand, “Bon Appetit” for which they are focusing on “deli counters” (supermarkets) and gourmet shops in the retail segment. The brand is present in 35 retail outlets across the country. Current Business The company is also looking to enter Rajasthan and Gujarat even though the states Model are mainly vegetarian. The company has opted to undertake live grilling and sampling at super markets as a marketing activity One important strategy adopted by the company is that they have installed their own freezers at supermarkets and their merchandisers visit the stores to check the product display everyday and other aspects

Reitzel Private Limited (Switzerland)

Reitzel Private Limited entered the Indian market in the year 2005 by establishing a production subsidiary in Bangalore, Karnataka. The manufacturing plant Entry Route produces pickled products, gherkins packaged in barrels, jars and cans for the direct export.

Brands in India Hugo Reitzel

In April 2013, Reitzel launched six variants of mustard sauces. The company is focusing on the QSR (Quick Service Restaurant), hotels, restaurants and supermarket segments for the range of its products. Current Business

Model The company also plans to launch mustard paste, flavoured vinegars and flavoured organic olive oil, directly imported from Europe. The company is looking to target Bangalore, Hyderabad, Chennai and Delhi for its products.

ROYCE’s Confect Company Limited (Japan)

Royce’s Confect has forayed into a distribution tie up with the fine food and luxu- Entry Route ry gourmet firm Burgundy Hospitality in India. They are also planning to open a flagship store at Mumbai’s high street Palladium Mall

Brands in India Royce Chocolate

Royce have done an initial market test, whichindicates that the Indian market is a Current Business Mod- ready market for the super premium gourmet products. el The company also plans to set up 20 Royce stores over the next three years in selected locations across the country

8.0 Pricing

India is a very price sensitive market. The market is open to exports from several countries and there is no short- age of competitive products. A long-term pricing strategy is essential to sustained competition in the market

Most of the food manufacturers (excluding manufacturers of premium and super premium foods), in the economy segment, try to price their products in the lower price ranges

The mark-ups at each stage of the distribution process are approx:

Importers/ Agents Wholesalers 2-3% 2-3%

Distributors Retailers 3-9 % 5-30%

The whole distribution process usually represents 25-30% of the final retail price

Depending on the particular segment, manufacturers need to devise different pricing strategies for their products to capture market share.

 Product hygiene also plays an important role in the pricing of the product. Fresh

products (e.g. fresh juices) have found a bigger consumer base compared to pack-

aged products.

 Product differentiation also plays an important role in the final price of the product. Manufacturers, in their quest to differentiate their product from that of their

competitors, invest a significant amount in marketing their products to create

brand awareness, which ultimately ends up with the manufacturer charging higher

prices for their products.

Price  The pricing of snack bars is an example where manufacturers charge prices on their products that can be considered premium for an average income earner in Deciding India due to the product differentiation factor.

Factors  In some industries (e.g. snack industry), the price of a product is highly dependent on the raw material required to manufacture the product.

 Customer preferences also play an important role in pricing . For example, low priced small pack snacks are popular both in rural and urban India. Many manufacturers attempt to find the ideal size of a snack packet that appeal to the customers.

 For many products (e.g. dairy products, milk products), an efficient supply chain is a key determinant of the final price

Pricing of some popular imported products in India

Brand Name/Type Category Company Pack Size Price (USD) of Product

Dalmia Continental Olive Oil Leonardo I litre 10 (Italy) Box with a set of 3 Chocolate Chocolate bars Lindt (Switzerland) 6-18 and up 2.8- Spaghetti Processed Food Spaghetti, Lasagne Barilla 500 gram container 5.0- Lasagne

Misti Doi, Flavoured Container of 80 Dairy Products Yoghurt, Low Fat Danone (France) grams and 400 0.22- 1 Dahi, Smoothies grams

The Laughing Cow Container of 8 Dairy Products Cheese Spread 3.00 (France) wedges Sugar & Confec- Orbit a Chewing Pack of 24 (Orbit), Wrigley (USA) 1.75 tionary Gum Pack of

Cappuccino- 1.61, 2.00, 2.20 Cappuccino, Caffe Containers of Caffe Mocha- 2.00, Coffee Mocha, Brewed Starbucks (USA) 237ml, 354ml and 2.20, 2.60 Coffee, 473ml Brewed Coffee- 1.40, 1.55, 1.70

Chicken Cubes, Pack of 7 cubes, Chicken Cubes- 1.50 Ready to eat Chicken Stock Pow- Massel (Australia) 168 gram of stock Chicken Stock Pow- der among others powder der- 6.00

Mango, Peach juices Dr. Pepper Snapple Fruit Juices 18 fl Oz 2.50 among others Group (USA)

9.0 Focus Foods: Opportunity for Swiss SMEs

Leading Swiss companies have been a part of India’s Although the share of imports from Switzerland in journey towards growth. The first major investment food segment remains small, the opportunity and by Swiss companies came in mid-50s. India remains demand for Swiss products is growing. one of the important investment destinations for Switzerland with about 200 joint ventures or sub- Swiss products carry luxury value in India. Choco- sidiaries operative in India in diverse fields. After lates and Cheese from Switzerland are most popular years of operation they have invested time and re- and easily recognized as luxury gifts for special sources to understand local and business condi- occasions. tions. After an in-depth study of the sector, we have iden- An increasing number of small and medium enter- tified some focus foods for Swiss SMEs that carry prises are now ready to explore India as potential opportunities in the Indian market an emerging destination to sell their products.

Increasing number of Expat population and purchasing power of rich affluent class in India

is a driver for growth of Swiss food.

An example of this is recent opening of "Swiss Gourmessa" store in New Delhi, bringing

authentic Swiss gourmet to India

9.1 CHOCOLATES

9.1.1 Overview

Chocolate consumption in India has witnessed high growth rate in the past few years, especially in urban and semi-urban areas.

The Indian chocolate industry is extremely fragmented with a range of products like bars, jellies, lollipops, toffees and sugar candies catering to a variety of consumer

Chocolate tablets dominate the market, accounting for about half of the chocolate sales in India. Count lines is the second largest segment, followed by boxed assortments.

Tablet chocolate sales by type Milk chocolate is strongly preferred over 4% dark and bitterer chocolates in India.

8% It is estimated that about 75% of the Plain milk 13% volume of tablet chocolate sold is plain Filled milk, plain dark and white chocolates Plain dark account for about 8% and 4% respec- Plain white tively, with the remainder being various 75% filled chocolates.

The chocolate industry in India today is dominated by two companies: Nestle and Cadbury. Cadbury controls over 67% share in the USD 7503 million chocolate segment in India, followed by Nestle with 21% share and Ferrero with 6% share.

9.1.2 Growth Rate & Projected Market Size

The chocolate market in precedent years has been witnessing tremendous growth in terms of value as well as volume. The governance of market is maintained by large international giants through franchisee and expansion into new markets

Indian chocolate industry has registered a growth of 15% per year from 2008 to 2012 and is projected to grow even at a higher rate in future. The industry has a positive outlook due to phenomenal growth in the confectionery industry, rising per capita income and gifting culture in the country.

 Urban consumers now buy chocolates and confectionery for everyday consumption. Earlier, they would buy them mostly during festivals.

 Also, more and more Indian consumers are replacing traditional sweets with chocolates.

 Indians now prefer chocolates over 'chaat and tikki' (local snacks) in a substantial change in snack consumption pattern

3 Source: Media Releases, T&A Research

Key Points

 It is expected that Indian chocolate industry will be growing at the CAGR 23% by volume between the years 2013-2018

 Chocolate and confectionery makers say adult consumption of chocolates and candies (Currently make up 20% of chocolate sales) is growing at the fastest pace in India, and companies like

Mondelez, Mars, Nestle, Perfetti Van Melle, Parle and ITC are launching new products and brands

that target the grown-up.

 New ways of positioning the brands has put the category into high consumption mode, with per capita consumption going up from 40 gm in 2005 to 120 gm this year

9.1.3 Purchased Imports

Despite the rapid growth of the local players in the chocolate industry in India, the imported brands continue to represent an important market share. Some of the most popular brands and their country of origin include:

Country of origin Main imported brand

Switzerland Toblerone, Nestlé

Netherlands Droste

Malaysia Tango, Van Houten, Vochelle, Gandour

Italy Ferrero Rocher

UAE Tiffany, Quanta

Turkey Solen

Holland Mars, Twix, Bounty, Snickers

South Africa Beacon

9.1.4 Manufacturers & Key Players

The organized chocolate segment in India is dominated by the multinational companies. However, domestic players are increasingly finding a prominent position in the market. The key players in the chocolate sector in Indian today are

 Cadbury India Ltd  Nestle India Ltd  Mars Inc.  Lotus Chocolates Company Ltd  Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)  The Campco Ltd

In addition, India has also a large unorganized manufacturing sector, of small producers offering very low priced products. They play an important role, although it is gradually beginning to decline with the predominance of the multinational companies in the market.

Domestic Players in the chocolate industry

Company Brand MRP (INR) Website

Congrats Rs. 90 Fundoo Rs. 50 Amul Dark Chocolate Rs. 20 www.amul.com (GCMMF) Chocozoo Rs. 50 Bindaaz Rs. 5 Rejoice Rs. 125 Chocogold Rs. 5 Priya Gold www.priyagold.com Snakker Rs. 15 Melto Rs. 10 Cream Rs. 10 Eclairs White Rs. 3 Eclairs Red Rs. 3 Eclairs Green Rs. 3 The Campco Limited www.campco.org Turbo Rs. 5 Treat Rs. 5 Campco Mini Bar Rs. 2 Krust Rs. 5 Mega Bite Rs. 5 Winner Rs. 65 Rs. 25 (150 Britannia Bourbon www.britannia.co.in gm)

Foreign Players in the Chocolate Industry in India (manufacturing in India)

MRP Company Brand Website (INR) Cadbury Dairy Milk Rs. 20 Cadbury Celebrations Rs. 85 Bournville Rs. 30 5 Star Rs. 10 Cadbury www.mondelezinternational.com Perk Rs. 10 (35 gm) Picnic Rs. 10 (26 gm) Eclairs Rs. 56 Nutties Rs. 16 (40 gm)

Nestlé Bar One Rs. 10 (28 gm) www.nestle.com

Alpino Rs. 25 Kitkat Rs. 10 Rs. 120 Munch (pack of 24) Munch Rollz Rs. 5 (8 gm) Milk Chocolate Rs. 240 (21 gm) Rs.240 Milkybar (pack of 24)

Milkybar Choco Rs. 5 (14 gm)

Kinder Joy Rs. 30 Ferrero Rocher Rs. 289 Ferrero Group www.ferrero.com Rs. 220 (350 Nutella gm) Lotte Choco Pie Rs. 60 (Pack) www.lotteindia.com Perfetti Van Melle Chocoliebe Rs. 50 (pack) www.perfettivanmelle.in

Imported brands in the Chocolate Industry in India

MRP Company Brand Local Distributor (INR)

Toblerone Rs. 350 Cadbury India Cadbury Temptation Rs. 499 Rs. 230 Mars (270 gm) Galaxy Rs. 20 Mars Rs. 230 Mars International India Bounty (270 gm) Twix Rs. 40 Snickers Rs. 30 Excellence Rs. 255 Rs. 1,005 Lindor Lindt (box) Narang Group Creation tablets Rs. 255 Swiss Classic Rs. 255 Classic range Rs. 250 Deluxe range Rs. 280 Patchi Brook Trading Company Pvt Ltd Rs. 300 Sugar-free range (100 gm)

9.1.5 Opportunities in the Indian Chocolate Industry

Opportunity

 Several Indians now prefer chocolates and chocolate based products as dessert, which increases the frequency of consumption. Dark chocolate is the fastest growing category in modern trade and presents an opportunity for foreign players

 Various chocolate companies are already in the product development process and are giving consumers options ranging from low calorie, energy bars to vegetarian chocolates

 Increased sales of gift boxes and institutional sales of luxury chocolates also presents potential opportunity as these are widely used for weddings and corporate gifting

 Specialized categories such as cooking chocolate and Sugar-free bars for Diabetics

are amongst other opportunities

vegetables in light of nutrition security, growing interest of food pro-

cessors and more profitable land use has brought in a significant

change in the outlook of the producers who started using the arid/semi-arid lands and horticultural crops that have lesser demands on water and gives three to four times more remuneration than field crops

9.2 CHEESE

9.2.1 Overview

India is not traditionally a cheese nation. A few decades ago, India was more a butter country as butter finds place at the breakfast table in many urban homes. Recently, the use of cheese and cheese spreads has increased in the urban mainstream.

Cheese is bought as cheese blocks, grated cheese and cheese spreads. In small stores as well as supermarkets we find tinned cheese and cheese cubes which are salted and ready-to-eat; cheese spread which was introduced as a substitute for butter; cheese singles (slice) which are used as stuffing for sandwiches; pizza cheese used as topping on pizzas which are fast becoming the preferred fast food in Indian metros. Amul has even introduced a low calorie version of cheese called “slim cheese.”

9.2.2 Growth Rate and Projected Market Size

The market size of branded cheese in India is about USD 200 million (excluding paneer - cottage cheese). Mumbai and Delhi together capture half of the cheese market. Within cheese products, around 60% of the market is dominated by processed cheese, 30% by cheese spreads and the remaining 10% by flavored and

specialty cheese. Amul and Britannia Milk Man are the lead brands.

Source: Media Releases

During the last few years, the Indian cheese market has grown steadily at 15 per cent per annum. With the growing saturation of cheese consumption in the West and the encouraging successes in other non-cheese Asian countries like Japan and China, overseas cheese producers are eyeing the Indian market for its huge promise.

9.2.3 Purchased Imports

Countries of import Brands

Italy Oro Del Tiempo, Agriform

France Babybel, Laughing Cow, Kiri, President, Bridel,

Spain Steffel

Denmark Arla (Castello)

Austria Happy Cow

India currently allows free imports of cheese from EU with an import duty of 30%

Key Points

 One of the biggest problems in the marketing& sales of cheese in India is the lack of

existing infrastructure, especially cold chains from the producer to the consumer.

 New entrants, including importers, need to make extra insfrastructural investments and this can be quite daunting for companies that are making a market entry into the dairy and cheese industry, particularly with limited existing knowledge of current

distribution issues.

 Importing cheese, especially for mass consumption faces two main stumbling blocks :

High costs

Added to high cost of importing cheese, importers often also have to invest substantially in a distribution network due to the lack of cold chains. Indian consumers are price sensitive and importers find it difficult competing against local and better priced brands.

Time lag in supplies

Due to logistics and the duration of the import process, replenshing stocks takes at least a couple of months, making it difficult for importers to cater rapidly to demand variations.

9.2.4 Manufacturers & Key Players

Major players of branded cheese in India include Amul, Britannia, Le Bon, Mother Dairy and others. Amul has a market share of 65%.

Domestic Players in the Cheese Industry in India

Company Website Brand MRP (INR)

Rs. 273 Cheese Slices (480 gm) Rs. 104 Cheese Cubes Britannia www.britannia.co.in (200 gm)

Rs. 150 Cheese Spread Sour Cream (180 gm)

Rs. 262 (750 Cheese Slices gm) Rs. 85 Processed Cheese (200 gm) Rs. 66 Amul www.amul.com Cheese Spread (200 gm) Rs. 155 Gouda Cheese (250 gm) Rs. 63 Cheese Spread Punchy (200 gm) Rs. 90 Go Pizza Cheese (200 gm) Rs. 79 Go Cheese Slices (140 gm)

Parag Milk Foods www.gowardhanindia.com Rs. 79 Go Cheese Wedges (140 gm) Rs. 178 Gowardhan Processed Cheese (400 gm)

Gowardhan Mozarella Rs. 100 Cheddar Cheese (200 gm) Milky Mist www.milkymist.in Rs. 63 Cheese Spread (200 gm)

Imported brands in the Cheese Industry in India

MRP Local Company Website Brand (INR) Distributor

Grana Padano

Gira & Gratta World Wide Food Agriform www.agriform.it NA Pvt. Ltd. Padano & Parmi- giano Reggiano

Grand Primo

Rai and Sons Pvt Laughing Cow Ltd Kiri Cream Rs. 199 Cheese

RR Oomerbhoy Fromageries Bel NA Pvt Ltd Fresh & Natural Rs. 325 Boursin Cheese

World Wide Food Babybel Rs. 550 Private Limited

Rs. 340 President Cream of Emmental (125 gm)

Rs. 250 President Em- mental Cheese (475 gm) Karamels

President Lactalis www.lactalis.fr Rs. 475 Tranches Em- L-Comps & mental Cheese Impex Pvt Ltd Slices

President Mozza- Rs. 199 rella Processed (200 gm) Cheese

Rs. 700 Granelo (Rs. 200) Fortune Foods Zanetti NA Pvt Ltd Rs. 595 Pecorino Roma- no (250 gm)

Fortune Foods Paysan Breton www.paysanbreton.com Le Petit Moulé NA Pvt Ltd

Veekay Foods & Woerle www.woerle.at Happy Cow Rs. 269 Beverages

Rs. 300 Fortune Foods Castello www.castellocheese.co.uk Brie (125 gm) Pvt Ltd

9.2.5 Opportunities in the Indian Cheese Market

Opportunity

 In the recent years Indians have embraced western fast foods whole-heartedly. Pizza

consumption in the country has increased tremendously and so is the demand for mozzarella cheese

 The demand for natural cheese is followed by that of the processed cheese in India. There is increasing preference for low calorie and diet cheese.

 Indian consumers generally prefer the branded cheese or the imported ones to that of the locally manufactured ones. Indian consumers lately have also developed a taste for Gouda cheese

vegetables in light of nutrition security, growing interest of food pro-

cessors and more profitable land use has brought in a significant

9.3 BISCUITS

9.3.1 Overview

The biscuit market in India is approximately USD 4 billion growing at 15 - 17% annually and is the third largest biscuit industry in the world. It is classified under two sectors: organized and unorganized.

The organized sector produces around 60% of the total production and the balance 40% is contributed by the organized bakeries.

The packaging of bakery products is closely interlinked with production, preservation, storage, transportation and marketing.

Packaging of biscuits constitute from 10 to 25% of the entire cost of the pack.

Indian Biscuit Industry The major brands of biscuits in organized sector are Britannia, Parle, Pri- yaGold, Elite, Cremica, Dukes, 40% Anupam, Horlicks, Craze, Nezone, and Organized sector 60% various regional/state brands. The Unorganized sector unorganized sector is estimated to have 30,000 small bakeries.

The major brands of biscuits in organized sector are Britannia, Parle, PriyaGold, Elite, Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, and various regional/state brands.

9.3.2 Growth & Future Projections

The biscuit industry, which consists of economy, middle, premium and super-premium segments, is likely to grow at 20 percent annually in the next few years.Growth in biscuit marketing has been achieved due to improvement in rural market penetration

The graph below shows the percentage share of the various segments within the biscuit industry

Others Salt Cracker 8% 6% Non Salt Glucose Cracker 19% Marie 9% 10% Cookies 26% Cream 22%

9.3.3 Purchased Imports

Country of origin Main imported brand

UAE Tiffany

Vietnam KINHDO

Malaysia IKO Biscuits

UK McVities

Canada Voortman Cookies

9.3.4 Manufacturers & Key Players

In the organized sector, the industry is dominated by Britannia and Parle. Parle-G and Britannia derive a fairly large share of their revenues from the medium and premium varieties. Britannia's market share in the medium and premium varieties is significantly high.

Other organized players include domestic players like Brakeman’s, Champion, Kwality, Priya and MNC’s like SmithKline Consumer, Kellogg’s, Sara, Heinz, Excelsia (Nestle) and United Biscuits.

It is Britannia, though, that’s credited with creating the cookies category in India with the launch of Good Day in 1986. It still rules the cookie market along with Parle’s Hide & Seek that came in 1998. The premium end saw renewed action from mid 2005, when ITC Foods launched Sunfeast Dark Fantasy, a premium cream biscuit. Later, Oreo from Cadbury India and McVities from United Biscuits joined the cookie bandwagon

The unorganized sector consists of small bakery units, cottage and household type manufacturing their goods without much packaging and distributing their goods in the surrounding areas.

Domestic Players in the Biscuit Industry in India

Company Website Brand MRP

Rs. 30 (100 Tiger gm)

NutriChoice Oat Cookies Rs. 50 (150 gm) NutriChoice Ragi Cookies Rs. 25 (75 gm) Bourbon Rs. 25 (150 gm) Rs. 25 (100 NutriChoice 5 Grain Britannia www.britannia.co.in gm) Rs. 30 (100 NutriChoice SugarOut gm) Rs. 120 (100 NutriChoice Digestive Biscuit gm) Rs. 108 (100 New Brittania Milk Bikis gm) Rs. 30 (200 Butter Bite gm) PriyaGold www.priyagold.com Rs. 25 (250 Marie Lite gm)

Dark Fantasy Rs. 30 (75 gm) Special Cookies Rs. 60 (45 gm) Snacky Rs. 40 (80 gm) Sunfeast www.itcportal.com Dream Cream Rs. 20 (150 gm) Rs. 60 (160 Glucose gm)

Chocolate cookies Rs. 30 (150 gm) Half Half Rs. 10 (114 gm) Rs. 25 (300 Elaichi Wonder Biskfarm www.biskfarm.com gm) Creams Rs. 25 (150 gm) Mini Creams Rs. 5 (58 gm) Thin Arrowroot Rs. 10 (148 gm) Rs. 55 (700 Parle G gm)

Monaco Rs. 10 (100 gm) Hide & Seek Rs. 20 (112 gm) Parle www.parleproducts.com Hide & Seek Bourbon Rs. 24 (150 gm) Rs. 25 (250 Parle Marie gm)

Top Rs. 10 (90 gm) Hide & Seek Fab Rs. 20 (112 gm)

KrackJack Rs. 10 (80 gm) Milano Rs. 25 (75 gm) Rs. 25 (250 Parle Actifit Digestive Marie gm) Milk Shakti Rs. 10 (100 gm) 20-20 Cookies Rs. 5 (45 gm) Happy Happy Rs. 10 (75 gm) Anmol Biscuits www.anmolbiscuits.net Anmol Rs. 25 (50 gm) Rs. 20 (100 Sona Biscuits Ltd www.sobisco.com Sobisco gm) Ravi Foods Pvt www.dukesindia.com Dukes Rs. 35 (75 gm) Ltd Rite Bite Rs. 540 Naturell India www.naturellindia.com Max Protein (6x75 gm) Rs. 85 Diät Foods N/A Sugarless Bliss (100 gm)

Foreign Players in the Biscuit Industry in India (manufacturing in India)

Company Website Brand MRP (INR)

Rs. 30 Cadbury www.mondelezinternational.com Oreo (117 gm)

Rs. 155 Mc Vitie’s Digestive (400 gm)

Rs. 99 Mc Vitie’s Ginger (250 gm) United Biscuits www.unitedbiscuits.com Rs. 115 Mc Vitie’s HobNobs Oat (300 gm) Rs. 155 Mc Vitie’s Digestive Light (400 gm) Mc Vitie’s HobNobs Milk Rs. 189 Chocolate Oat (300 gm)

Imported brands in the Biscuit Industry in India

Company Website Brand MRP Local Distributor

www.iffco.com Tiffany Digestive Rs. 140 Light (400 gm) IFFCO Mass Impex Tiffany Cream Wa- Rs. 50 fers (200 gm) Rs. 80 Creamity (165 gm) www.kinhdo.vn Rosette Milk Choco- Rs. 85 KINHDO NA late Cream Sandwich (140 gm)

Rs. 60 Cremini (60 gm) YLF Manufacturing IKO Sugar free Oats Rs. 155 www.asiaep.com Shahi Foods Sdn Bhd Biscuits (220 gm)

9.3.5 Opportunities in the Indian Biscuit Industry

Opportunity

 Health biscuits, like digestive or sugar-free ranges, are also gaining ground, as consumers not only buy more biscuits but also have become more health conscious. This is one of the sub-segments with high growth potential. For example, Britannia has

fortified its offerings with additional proteins and fibre to lure new buyers, wherein the overseas players such as United Biscuits have succeeded in the Indian market with their “Mcvities” brand.

 The Indian biscuit culture is witnessing a change from “affordable glucose based” biscuit to “indulgence” products. Premium biscuits are becoming more pronounced as a key trend in the bakery industry.

 Consumers are increasingly seeking for premium, gourmet and exotic products to satisfy the desire to indulge. Hence, there is opportunity in the premium cookies segment where overseas brands such as Australia’s Cookie- man have forayed. Though Cookie-man’s presence in India has been in a “café” mode, they have seen considerable demand for premium cookies.

 To summarize, opportunity for foreign biscuit manufacturers is in the premium indulgence category and health category of biscuits.

87 vegetables in light of nutrition security, growing interest of food processors and more profitable land use has brought in a significant

9.4 OLIVE OIL

9.4.1 Overview

An increasingly health conscious consumer segment has propelled the olive oil market in India. Brands like Leo- nardo, Cola Vita, Bertolli, Fragata etc, which were only known to Five-star hotels a couple of years ago are today easily available through retail outlets

Market Size & Projected Growth

India’s olive oil space grew to 4,000 tons in 2011 and 6,900 tons in 2012. The market is expected to grow by 45 % to 10,000 tons this fiscal on the back of rising consumption in metro cities like Delhi and Hydera- bad.

According to industry estimates, in value terms, the size of the olive oil market in India, which is one of the world's largest vegetable oil consumers, is around USD 80 million. This includes both massage and edible olive oil segments.

Source: Indian Olive Oil Association

North India is the largest consumer of olive oil and the split is 50:50 between Delhi and the rest of North India. It is followed by South India where Hyderabad is the biggest consumer followed by Bangalore and Chennai. In West India, Mumbai is the largest consumer

The main challenge faced by the industry is the outmoded trade standards in use by Food Safety and Standards Authority of India (FSSAI).Despite the passage of four years since the issue was brought to FSSAI's notice, Indian standards have still not been aligned with international standards such as CODEX or those of the EU or the In- ternational Olive Council.

India will soon start commercial olive-oil production across 180 hectares of land in the arid western province of Rajasthan. The government has subsidized 75% of the cost of each olive sapling, provided free consultancy and a 90% subsidy on drip-irrigation equipment to encourage farmers for olive cultivation.

9.4.2 Major Imports & Duties

Although determined efforts are being made by some Indian State Governments, there is little commercial olive cultivation in India as yet. In the absence of significant local production, Indian olive oil requirements are entirely met by imports from a number of sources

India largely imports olive oil from Spain, Italy and Turkey. There is some import from other olive oil producing nations like Greece, Syria and Tunisia also.

Countries of import Brands

Sasso, Leonardo, Colavita, Bertolli, Figaro, Olitalia, Shri- Italy ne, Fillipo Berno, Dolce Vita

Spain Borges, Agro Sevilla, Hojiblanca

France Huileries de Lapalisse

 Table olive consumption in India is restricted by high import duty rates which, at 44 to 51 per cent, is among the highest in the world despite the fact that there is no domestic production of table olives

 As a result of repeated representations by the International Olive Council, with wide on- ground support from the local Indian Olive Council and industry members, the Indian Fi- nance Ministry Government totally exempted imports of all grades of olive oil from customs duty effective 19 February 2009. Industry experts predict a l5% reduction in the retail price of olive oil following the customs duty exemption.

9.4.3 Import Restrictions

According to the Food Safety and Standards Regulations, olive oil that is imported to India must meet the following criteria in terms of composition:

Refined Olive Oil: Olive Oil obtained from virgin olive oils by refining methods, which do not lead to alterations in the initial glyceridic structure, and it has a free acidity (FFA), expressed as Oleic Acid, of not more than 0.3 grams per 100 grams

Olive Oil: Oil consisting of a blend of refined olive oil and virgin olive oils suitable for human consumption and it has a free acidity (FFA), expressed as Oleic Acid, of not more than 1 gram per 100 grams Extra Virgin Olive Oil:Virgin olive oil with a free acidity (FFA), expressed as Oleic Acid, of not more than

0.8 grams per 100 grams

Virgin Olive Oil: Virgin Olive Oil, with a free acidity (FFA), expressed as Oleic Acid, of not more than 2.0 grams per 100 grams

Ordinary Virgin Olive Oil: Virgin Olive Oil, with a free acidity (FFA), expressed as Oleic Acid, of not more than 3.3 grams per 100 grams

Refined Olive Pomace Oil:Oil obtained from crude olive-pomade oil by refining methods which do not

lead to alterations in the initial glyceridic structure and it has a free acidity (FFA), expressed as Oleic Acid, of

not more than 0.3 grams per 100 grams

Olive Pomace Oil: Oil consisting of a blend of refined olive-pomace oil and virgin olive oils and it has a free acidity (FFA), expressed as Oleic Acid, of not more than 1 gram per 100 grams

Labelling Requirements for importing olive oil into India

Overseas exporters are required to comply with the following Indian labelling requirements on individual packs to facilitate easy clearance of the container through the Indian Customs:

 Printing of the company name and contact details of the manufacturer/producer.  Green/red sticker – a green dot indicates the product is vegetarian. A red dot denotes non-vegetarian contents.  A label mentioning:  Full name and contact details of importer  Month of import  MRP (maximum retail price)  Use before date (or expiry date)

 The month of manufacturing and weight should be printed on each packaged item.  Each packet should have details of the ingredients as per the Prevention of Food Adulteration Act & Rules (PFA).

9.4.4 Manufacturers & Key Players

The top 3 brands in the domestic market, which together control more than 60 per cent of retail sales, are Leo- nardo, Figaro and Borges (including Cesar). Some other prominent brands include RS, Bertolli, Del Monte, Fragata, Colavita and Athena.

Figaro and Leonardo are majorly sold in the Indian market with pack sizes 250 ml and 500ml being the most preferred.

Players in the Olive Oil Industry in India

Company Brand MRP (INR) Website

Dalmia Continental Private Leonardo Rs. 995 (1 L) www.dalmiaglobal.com Limited

Imported Olive Oil brands in India

Company Website Brand MRP Local Distributor

Rs. 405 Minerva Oil www.minerva.com.gr Sasso Rai & Sons Pvt Ltd (500 ml) Rs. 650 Del Monte Foods. www.delmonte.com Delmonte Olive Oil Bharti Delmonte (1 L) Rs. 801 Deoleo SA www.deoleo.eu Figaro Sri Roda Foods (1 L) Dolce Vita Olive Rs. 210 www.dolce-vita.eu.com Dolce Vita Chenab Impex Pvt. Ltd. Oils (250 ml) Rs. 950 Manisha International Colavita https://colavita.com Colavita (1 L) Private Limited Rs. 199 R. R. Oomerbhoy Pvt. Bertolli www.bertolli.com Bertolli (200 ml) Ltd.

9.4.5 Opportunities in the Olive Oil Industry

Opportunity

 Due to the shift in the demographics in India with a rise in the “health and diet conscious” section of the population many have started opting for olive oil, especially for the “home made continental” dishes made by the urban women.  With the increasing health consciousness of the Indian middle class (numbering around 300 million plus), medical practitioners and nutritionists are bullish on the future potential of olive oil as a cooking medium in India as it is generally believed most Indians are prone to coronary heart diseases, hypertension and related ailments due to their use of high cholesterol traditional edible oils for fry- ing.

vegetables in light of nutrition security, growing interest of food processors and more Market Entry Strategy profitable land use has brought in a significant change in the outlook of the produc-

ers whoView started using theIn viewarid/semi of the vast-arid size lands of the andIndian horticultural market and regional crops market that diversities,have les s-it er demands on water andis recommended gives three that to potential four times olive oil more suppliers remuneration consider appointing than a field local Point distributor with a network of branches in Delhi, Mumbai, Bangalore, Chennai, crops Hyderabad and Ahmedabad to promote their products in the region.

 Considerable brand promotion is required in this market in conjunction with the local distributor through media publicity as the Spanish and Italian suppliers are well entrenched, with aggressive campaigns from time to time.

9.5 JUICES

9.5.1 Overview

Convenience and natural taste together with health-consciousness has played an important role in the growth of Indian juice market in recent years. Within the beverages market, the fruit-based beverages category is one of the fastest growing categories, and has grown at a CAGR of over 30 percent over the past decade.

The juice market includes fruit drinks (with a maximum fruit content of 30%), nectar drinks (with a fruit content of between 25% and 90%) and 100% fruit drinks. The market also includes vegetable drinks.

Fruit juice is most preferred where pulp content is more than 80%, followed by fruit nectar with pulp content (40% to 80%) and fruit drink having a content less than 40%.

Segmentation of fruit juice market

32%

Fruit Juice 48% Fruit Drink Fruit Nectar

20%

9.5.2 Market Size & Projected Growth

At present, the Indian packaged juices market is valued at USD 185 million and is projected to grow at a CAGR of 15 percent over the next three years.

The juice market has emerged as a fastest growing segment of the Indian non-alcoholic drinks market over the recent past

The leading company in terms of retail volume sales in 2012 was Coca-Cola with a 28% share. It was fol-

lowed by PepsiCo (24%) and Parle Agro (21%). Maaza, from Coca-Cola, continued to lead among brands with a 25% retail volume share.Slice from PepsiCo and Real from Dabur showed robust growth in 2012.

9.5.3 Organic Juices

Drinking juice in India has never been a chemical and pesticide free experience. The juices available across different retail formats (both organised and unorganised) are mostly fruit juices with artificial flavours, sugar and added water.

There are handful prominent names in Indian organic juice industry. However, most of them are engaged in growing and processing of indigenous fruits such as Amla (gooseberry), Jamun (java plum), mango etc.

We have listed down some domestic brands of organic juices:

Price & S.No. Name Country Remarks Products Quantity (INR) Available at Patanjali Aloe Vera & 1 Patanjali Rs. 200 (1 litre) India stores and pharmacies Gooseberry across the country juice Available in 50+ retail stores such as Spen- 2 24 Letter Mantra Rs.95 (1 litre) India cer's, Q Mart, Goderj Mango Juice Nature's Basket, Food Bazaar Available at Vitromed Aloe Vera, Healthcare stores and 3 Vitro Naturals Rs. 306 (1 litre) India Neem, pharmacies across Jamun etc India Aloe Vera & 4 Down to Earth Rs260 (500ml) India Only available online Gooseberry juice Brand owned by Pepsi- co India. Available 5 Tropicana Rs 99 (1 litre) India Orange Juice across retail outlets in India

We have enlisted below some of the imported brands of organic juices:

Price & S.No Name Quantity Country Remarks Products (INR)

Fresh Ginger, Lemonade, Rs.195 (250 Only available 1 Belvoir Fruit Farms UK Orange & Mandarin, Elder- ml) online flower

Apple Juice Carrot Juice Beetroot Juice Red Grape Juice Rs. 325 1 store in Noida, Blackcurrant Nectar 2 Rabenhorst Germany (750ml) UP Pomegranate Juice Cherry Juice Cherry Nectar Multifruit Juice Buckthorn Nectar Rs. 3,810 Only available Noni, Aloe Vera, Tart Cher- 3 Dynamic Health USA (946ml) online ry, Raspberry Available at Food hall stores Rs.100 across In- 4 Florida's Natural USA Orange Juice (473ml) dia(Bangalore, Delhi & Mum- bai) Rs. 1772 Only available 5 Earth's Best USA Apple Juice (125ml) online

India’s First Organic Mango Juice

Sresta, India's one of the leading organic food producers has launched the country's first organic mango juice, "24Letter Mantra" in 2012 to give juice lovers a new experience in taste, quality ingredients and health in India.

The juice is available in leading supermarkets and food outlets in New Delhi with NCR, Mumbai, Pune, Ahmedabad, Baroda, Bengaluru, Chennai, Hydera- bad and Kolkata.

The Juice is available in 1 litre tetra pack. It is priced at approx. USD 2.0

Sresta has dedicated relationships with a network of over 10,000 farmers, cultivating 30,000 acres across 11 states in India. The facilities are vertically integrated from farm level to finished product.

Price of Imported Organic Juices

Organic juices command a premium over products grown using conventional farming techniques, because consumers are willing to pay extra for the health advantages de- Pricing rived from products grown without the use of pesticides and chemical fertilizers.

Typically, retail price point of one litre of imported juice in India varies approximately from USD 4 to 8.

9.5.4 Purchased Imports

Country of origin Main imported brand

USA Del Vallee Juices, Treet Top, Ocean Spray, Tang, Tampico

Kuwait KDD

Australia Berri, Harvey Fresh Juices

UK James White

Sri Lanka MO Fruit

South Africa Ceres

Thailand Jus Cool

9.5.5 Manufacturers & Key Players

The major players of the Indian juice industry are:

 Tropicana, Slice – Pepsico  Real, Real Activ, Real Junior – Dabur Industries  Xs, Jumpin – Godrej Industries  Frooti – Parle Agro  Maaza, Minute Maid – Coca Cola

Domestic Players in the Juice Industry in India

MRP Company Website Brand (Per lt) INR Frooti Rs. 50 Parle Agro www.parleagro.com Appy Rs. 55 Saint Juice Rs. 95 Real Rs. 85 Real Active Rs. 105 Rs. 48 Dabur Foods www.dabur.com Real Junior (250 ml) Rs. 48 Lemoneez (200 ml) Godrej Foods Jumpin Rs. 45 www.godrej.com Xs Rs. 99 Tunip Agro Limited www.onjusindia.com Onjus Rs. 90 Tristar Beverages www.vishalpet.com Mango Dash Rs. 35 Rs. 20* Fresca Juices www.frescajuices.com Fresca (300 ml) Rasna Group Rs. 85* www.rasnainternational.com Fruit Plus (Pioma Industries) (500 gm) Mother India Farms www.motherindiafarms.com Organa Rs. 75 Balan Natural Food Ltd www.bnatural.in B Natural Rs. 99

Foreign Players in the Juice Industry in India (manufacturing in India)

MRP (Per lt) Company Website Brand INR

Tropicana Rs. 85 to 99 Mirinda Rs. 53 PepsiCo Ltd www.pepsico.com Rs. 58 Slice (1.2 lt)

Coca Cola India www.coca-colaindia.com Minute Maid Rs. 55

Imported brands in the Juice Industry in India

MRP Local Company Website Brand (Per lt) Distributor INR Rs. 90 V&V Beverages Tree Top Inc. www.treetop.com Tree Top (300 ml) Pvt. Ltd. KDD www.kddc.co.in KDD Juices Rs. 99 KKD Harvest Rs. 30 Del Monte Foods www.delmonte.com Del Monte Bharti Delmonte (500 ml) L-Comps & Impex The Ceres Beverages www.pioneerfoods.co.za Ceres Rs. 140 Pvt Ltd Rs. 350- Apetito Foods & James White www.jameswhite.co.uk James White 380 Beverages (750 ml)

9.5.6 Opportunities in the Indian Juice Industry

Opportunity

 Growth segments within the juice industry are mentioned below. These sub-segments within the juice industry are growing fast and are largely untapped in the Indian market.

 Fibre-enriched juices

 Sugar free juices  Organic juices

 100% fruit concentrate with no added flavors  Exotic flavours such as cranberry, passion fruit etc

 Vegetable juices are also slowly gaining importance, although in the health management area rather as a daily diet/ nutritional supplement.

vegetables in light of nutrition security, growing interest of food processors and more profitable land use has brought in a significant change in the outlook of the producers who started using the arid/semi-arid lands and horticultural crops that have lesser demands on water and gives three to four times more remuneration than field crops

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9.6 WINE

9.6.1 Overview

Whether or not people have found a way to match up wine and Indian food, nothing has not stopped the wine industry from booming. It is just one of the ways that wine is transforming from a trend to a lifestyle product.

India doesn’t have the most ideal climate for growing wine grapes. India’s local wine industry is still at a nascent stage; however it is growing at 15-20% annually. The current market size of India’s wine industry is estimated to be around USD 350 million.

Imported wine is the mainstay of the wine industry in India& the wine consumption is clustered around certain geographic pockets. Mumbai, Delhi, Bangalore and Goa make up the majority of wine consumption in India.

Wine Consumption across India

20% Mumbai 39% 9% Delhi 9% Bangalore 23% Goa Rest of India

Source: Business Standard

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9.6.2 Major Imports

Wine imports to India had been on an “up-down trend” over the past 5 years, reaching a peak in 2010 & 2011 and experiencing a slide in 2012. The below exhibit shows the trend of wine import into India.

Wine Imports to India in USD Million

30 28 28

25 The main importers of wine to India

20 19.3 19

are France, Italy, 15 14.2 Germany, USA, UK

and Singapore USD Millions USD 10

0 2008 2009 2010 2011 2012

Source: UN Comtrade

Although, the domestic wine production industry is in its infancy, some of the local producers like Sula, Grover, Four Seasons, Good Earth, Nine Hills, Fratelli, Vintage, Mercury and York have been making efforts to increase exports.

Despite complex tax structure and no government subsidies, the producers are optimistic about the future trend and are entering the arena with collaboration in technology, equipment, viticulture and even equity.

The government of India does not subsidize the Indian producers like the Europe- Government an Union. However, they encourage the production and protect the domestic pro- Support ducers by imposing heavy customs duties and excise duties on foreign wines in different states.

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Key Points

 Wines that are fruit driven and have softer, velvety tannins are a better match with Indian food

 Budget wine in India is very affordable from the point of view of college students and most

youngsters who prefer a wine on the sweeter side

 There are over 500 liquor stores selling wine within Delhi: 423 government-run, 90 private and 16 mall-based liquor outlets. Wine is no longer restricted to beer and wine stores and is sold as a lifestyle product in most hypermarkets.

 The fastest-selling domestic wines in any typical wine-based food service outlet range in price from USD 9 -10, while imported wines are between USD 23-27

9.6.3 Key Players & Brands

Domestic players in the Indian Market

S. No Company Name/Wineries Details

 Established in 1999, Sula Winery controls over 35% of the total market in India on a pan-India basis.  The wines produced by Sula cover a wide range of the price spectrum such as the aged Rasa for USD 18 and the low end wines that cost only USD 2.  Sula has pioneered many grape varietals in India like Sauvignon 1. Sula and Chenin Blanc in 2000, Zinfandel in 2001 and Riesling in 2008.  In 2005, it launched its first reserve wine, the Dindori Reserve Shiraz, as well as India's first dessert wine, the Late Harvest Chenin Blanc

 Grover Vineyards had been the second largest producer of wine till 2008.  It had some quality management issues due to which it lost market share to other competitors. 2. Grover Vineyards  Currently known as Grover-Zampa Wines, the company had gone through a merger and a capital infusion in 2011 and is now looking to gain the market share it lost to its competitors.  La Reserva is the flagship wine of this group.

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 Owned by Vijay Mallaya’s United Beverages Group, the winery is located in Baramti, Maharashtra & has grown steadily over the last 5 years. 3. Four Seasons  Currently, it has the second largest market share in the premium wine segment with sales of 60,000-65,000 cases in 2011.

 Owned by Pernod Ricard, the company started by producing wines that were of low quality, but over the years the company has started improving the quality of its wines. 4. Nine Hills  Currently, the company is able to sell around 35,000 cases per year, maintaining a steady growth rate of 25-30% p.a.

 Other wineries such as Vinsura, Big Banyan-Goa, York and Mercury are competing hard to increase their market share.  Fratelli is a relatively new company, which has received a lot of interest from potential investors due to the high quality wine 5. Other wineries they offer.  Fratelli currently offers the most expensive Indian wine at almost USD 25.

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List of Major Wine Importers

S. No Name of Importer Website Brands Imported

Imports a wide range of wines from France, Italy, Spain, New Zealand, Australia, Chile, Argentina and premium regions such as Bor- deaux, Burgundy Marlborough, Sonoma and Amfora Wine & Foods Stellenbosch. 1 www.amforawine.com Pvt. Ltd They import Abednego Grenache Shiraz Mourvedre, Amarone Classico DOC, Fontallo- ro IGT Toscana, Safrredi Maremma to name a few.

Imports a wide range of wines France, Ger- many, Austria, Italy, Portugal, Spain, Austral- ia, New Zealand, South Africa and Argentina.

2 Aspri Spirit Pvt. Ltd www.aspri.org They import Domaines Barons De Rothschild Aussieres Rouge, Champagne Lombard Cuvee Brut NV, Chateau L’ Hospitalet Reserve Blanc AOC, to name a few brands.

Berkmann Wine Cellars 3 www.berkmann.co.uk They primarily import Italian wine into India India Pvt. Ltd

They import from Italy, Germany, France, Ar- gentina, Chile and USA.

4 Brindco Sales www.brindco.com Viňa Tarapacá 'La Isla' Sauvignon Blanc, Schlumberger, Gewürztraminer Grand Cru 'Kessler', Maison Louis Latour Pouilly Fuissé etc are a few brands imported by Brindco The company imports wine from France, Argen- tina, Italy, Australia, Chile, New Zealand, Por- Indospirit Distribution tugal, South Africa and Spain. 5 www.indospirit.com Pvt. Ltd. They import Sab Miller, Diageo, Kim Crawford Marlborough Pinot Noir etc into India.

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9.6.4 Regulations

In order to prevent importers to Free Trade Agreement with European Union dump poor quality wine in the Indian market, the Union Minis- During June 2013, as part of a step towards signing the Free Trade try of food processing will create Agreement (FTA) with the European Union, India had offered to cut standards for the Indian wine the customs duties on wine and spirits to 40% from the current 150% industry by the next fiscal. These that is applicable for European wine importers. standards will codify grape varieties, alcohol content, fermenta- During 2013, India had proposed to offer the Customs duty to 80%. tion process, hygiene standards India also proposed to cut the entry price of bottle of wine to USD 3.5 viticulture practices for the win- per bottle of wine however the law is yet to pass. eries

Applicable Import Duty

HS Code Series ITEM Total Duty (%)

2204 Wine and Spirits 164%

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9.6.5 Opportunities in the Wine Industry

Opportunity

 India has a population of 1.13 billion people, half of whom are under 35 years, offering a potentially huge opportunity for wine producers

 About 300million people belong to the middle class, of which there are potentially 30million potential wine drinkers, although at present, there are less than 2 million

wine drinkers in India.

 The new laws that would be enacted by the government would go a long way to ensure that wines are produced according to global standards in India, and this would encourage the young population to have more faith in the wine quality in India.

 The new phenomenon of wine-based food service restaurants and cafes (such as Vinoteca and Ivy Wine Café & Bistro) are gaining strength in India, though the penetration is limited to top 3-4 cities and some of the major tourist destinations.

vegetables in light of nutrition security, growing interest of food pro-

cessors and more profitable land use has brought in a significant

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9.7 COFFEE

9.7.1 Overview

The coffee industry of India is the sixth largest producer of coffee in the world, accounting for over 4% of world coffee production, with the bulk of all production taking place in its Southern states.

The per capita consumption of coffee in India is only about 90 grams. This is considerably low compared to other coffee exporting nations such as Brazil (6 kg), Colombia (1.8 kg), Ethiopia (2.4 kg) and Vietnam (1.1 kg) among others. This shows the immense potential for the domestic coffee industry to grow.

The estimated 2011 domestic coffee consumption of 115,000 MT would indicate a growth rate of approximately 6.80% since 2008. Even by a conservative estimate of 6%, the consumption in 2013 will be 129,000 MT.

9.7.2 Growth Rate and Projected Market Size

The retail sales of coffee is expected to witness a CAGR of 9% in constant value terms, to reach USD 564 million in 2017.The growth of modern retail outlets and coffee chains is expected to drive coffee growth over the forecast period.

Consumption

Coffee consumption has seen a robust growth during the past decade. Key drivers of this growth can be attributed to increase in income along with growing middle class and urbanization. This has led to the trend of emerging cafe culture in the country. Domestic coffee consumption is expected to grow at a compounded annual growth rate (CAGR) of 6% during the period CY12-15.

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Coffee Consumption (MT)

160000 145185 136967 140000 129214 121900 120000 115000 108000 102000

100000 94400

80000 Tonnes

60000

40000

20000

0 2008 2009 2010 2011 2012 [2013] [2014] [2015]

Source : Coffee Board & CARE Research

9.7.3 Purchased Imports

Countries of import Brands

Switzerland Nescafe, Illy

Italy Lavazza

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Share of India's Imports

Coffee not roasted, not 33% decaffeinated Coffee roasted, not decaffeinated Coffee husks and skins, coffee substitutes 67% Coffee not roasted, 0% decaffeinated

Source: Coffee Board of India

9.7.4 Manufacturers & Key Players

Nestlé India and Hindustan Unilever Company largely lead coffee with a combined retail value share of 67% in India. Nescafe India accounted for 36% of retail value sales in 2012 and was followed closely by Bru, which accounted for 31%.

Domestic Players in the Coffee industry

Company Website Brand MRP (INR)

Tata Aveon Rs. 155 Coffee (100 gm) Tata Global Beverages www.tataglobalbeverages.com Rs. 131 Mr. Bean (500 gm)

Rs. 115 Extra Strong (500 gm)

Premium Spe- Rs. 155 Cothas Coffee Co. www.cothas.com cial Coffee (500 gm)

Premium Blend Rs. 28 Coffee (100 gm)

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Rs. 210 House Blend (500 gm)

Madras Blend Rs. 37 Roast and (100 gm) Ground

Top Blend Cof- Rs. 92 Leo Coffee www.leocoffee.co.in fee (200 gm)

Breakfast Blend Rs. 155 Roast and (500 gm) Ground

Rs. 230 Top Blend (500 gm)

Rich Filter Cof- Rs. 150 Bhavani Koffee www.bhavanikoffee.co.in fee (500 gm)

Rs. 450 Sussegado Coffee www.sussegadocoffee.com Arabica (250 gm)

Foreign Players in the Coffee Industry in India (manufacturing in India)

Company Website Brand MRP (INR)

Nestle India www.nestle.in Nescafe Classic Rs. 210 (100 gm)

Nescafe Cappuccino Rs. 75 (75 gm) Nescafe Sunrise Strong Rs. 75 (50 gm) Nescafe Sunrise Rs. 86 (50 gm) Hindustan Unilever Company Brooke Bond Red Label Rs. 190 www.hul.co.in (500 gm) Brooke Bond Taj Mahal Tea Rs. 226 (500 gm) Brooke Bond Red Label Rs. 425 Natural Care (1 kg) Bru Instant Rs. 290 (200 gm) Bru Lite Rs. 70 (50 gm)

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Bru Exotica Rs. 390 (100 gm) Bru Select Rs. 225 (500 gm)

Imported brands in the Coffee Industry in India

Company Website Brand MRP Local Distributor

Rs. 1,100 Illy Coffee Beans (250 gm) Rs. 1,200 Illy Coffee Powder (250 gm) Suntory Narang Pri- Illy www.illy.com Rs. 600 vate Limited Illy Espressoground (125 gm) Illy Espresso Descaffe Rs. 600 Coffee (125 gm) Rs. 500 Club Tin Coffee (250 gm) Rs. 700 Coffee Beans Lavazza www.lavazza.com (250 gm) Fresh&Honest Cafe

Rs. 450 Qualita Rossa (250 gm)

Rs. 499 Nescafe Gold (100 gm) Nestle www.nestle.in Nestle India Pvt. Ltd. Nescafe Iced Coffee

9.7.5 Opportunities in the Coffee Market

Opportunity

 India has witnessed a huge increase in out-of-home consumption of coffee with the

retail cafe lifestyle taking hold with the younger generation

 A growing demand for products like espresso blends based on Italian style coffee, instant coffee and specialty blends present opportunities for Swiss SMEs

 Coffee drinking has become fashionable over the last decade, because of the specialized cafe chains such as Cafe Coffee Day, Barista Lavazza and Costa Coffee. These specialized cafe chains have emerged as popular hangouts for the urban youth resulting in increased overall sales of coffee.

112 vegetables in light of nutrition security, growing interest of food processors and more profitable land use has brought in a significant

9.8 TEA

9.8.1 Overview

India is the largest producer of black tea as well as the largest consumer of tea in the world.

Currently, India produces 23% of total world production and consumes about 21% of total world consumption of tea – nearly 80% of the tea produced is consumed within India. Despite the fact that coffee consumption is rapidly increasing and being driven forward by the country’s growing middle class and younger consumers, demand for tea is still strong as it is consumed by 90% of Indian households.

The total branded tea market in India is currently approx. USD 1.7 billion with consumption growing at 3% per annum. With increasing awareness about tea as a health beverage, the market size could double in the next 5 years

Tea Consumption

960

940 936 920

912

900

880 890

Million Kg Million 875 860 856 840

820

800 2011 2012 2013 2014(E) 2015(E)

Source: T&A Research

9.8.2 Growth Rate and Projected Market Size

During the decade CY02-12, tea consumption in India registered a compounded annual growth rate (CAGR) of 2.4% to reach a level of 875 million kg in 2012. The per capita tea consumption of tea also increased from 652 grams in 2000 to 725 grams in 2012 owing to the steady demand. Tea is a highly penetrated beverage in the country and also has alternative such as coffee.

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Domestic tea consumption is expected to grow at a CAGR of about 5% for next few years.

Forecast Retail Sales of Tea by Category : Volume 2011-2016 (USD millions) 2011 2012 2013 2014 2015 2016 Black Tea 1,098 1,118 1,157 1,208 1,261 1,316 Green Tea 68 75 85 961 108 122 Tea 1,168 1,195 1,246 1,306 1,371 1,440

Source: Trade Associations, Company Research, Trade Interviews, Press Release

9.8.3 Purchased Imports

Countries of import Brands

Sri Lanka Basilur, Dilmah

UK Twinings, Typhoo, Newby Teas

9.8.4 Manufacturers & Key Players

Packet tea market is highly proliferated, matured market with more than 300 brands in the country though dominated by HUL and Tata tea which have presence in all pack size and price variants and jointly control a market share of 40 per cent of the packet tea industry. Some other players like- Duncan's, Eveready, Goodricke, GPI, Waghbakri, Girnar,Sapat, Dhunseri, Mohini, Society, Marvel etc. have strong regional presence.

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Domestic Players in the Tea Industry in India

Company Website Brand MRP (INR)

Apeejay Surrendra Rs. 160 to 575 www.apeejaygroup.com Typhoo Group (100 gm)

Tata Global Rs. 118 www.tataglobalbeverages.com Tata Tea Beverages (500 gm)

Rs. 210 Hasmukhrai & Co www.hasmukhpgtea.com Society Tea (500 gm) Rs. 97 Wagh Bakri (250 gm) Wagh Bakri Tea Group www.waghbakritea.com Rs. 105 Good Morning (250 gm) Mili Himherbs P&S Co-Op Rs. 195 www.himherbs.com Himalayan Amrit Tea Industrial Society Ltd (100 gm) Rs. 300 Chamong Group www.chamong.com Chamong (20 tea bags) Duncan’s Double Rs. 250 www.duncans-tea.com Duncan’s Diamond Tea (250 gm) Rs. 65 Goodricke Group www.goodricke.com Goodricke Perfect (250 gm) Girnar Food & Bever- Rs. 35 to 65 www.girnar.com Girnar ages Pvt. Ltd. (50 gm) Harrisons Malaya- Rs. 250 www.harrisonsmalayalam.com Touramulla lamLimited (100 gm)

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Foreign Players in the Tea Industry in India (manufacturing in India)

Company Website Brand MRP (INR)

Rs. 72 Brooke Bond Taaza Leaf (250 gm) Rs. 85 Brooke Bond Taaza Gold Hindustan Unilever www.hul.co.in (250 gm) Rs. 244 Brooke Bond Taj Mahal (200 nos)

Red Label Rs. 112 (250 gm)

Rs. 298 Tata Global Beverages www.tataglobalbeverages.com Tetley (200 gm)

Rs. 220 Earl Grey Teas (25 tea bags)

Rs. 150 Darjeeling Twinings Tea www.twinings.com (25 tea bags)

Rs. 220 (25 tea Green Teas bags)

Rs. 278 Yellow Label (500 gm) Rs. 550 Clear Green Tea (500 gm) Lipton www.liptontea.com Rs. 550 Darjeeling Tea (500 gm) Rs. 100 Iced Tea Lemon (500 gm)

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Imported brands in the Tea Industry in India

Company Website Brand MRP Local Distributor

Rs. 200 to Rs. Twining's Suntory Narang Pri- Twinings Tea www.twinings.com 660 vate Limited (100 nos)

Rs. 490 to Rs. Newby Teas Pvt www.newbyteas.com Newby 990 Newby India Pvt. Ltd Ltd. (125 gm) Rs. 699 to Basilur Tea Pvt www.basilurteaindia.com Basilur Rs.899 SVA India Ltd Ltd (125 gm)

9.8.5 Opportunities in the Tea Market

Opportunity

 Awareness about health benefits associated with moderate intake of tea is one of

the significant factors behind the upsurge in its demand with more and more people getting familiar with healing properties of tea. Green tea, herbal tea and detox tea are core segments of opportunity

 Much like wine, the awareness about tea and its many varieties has grown rapidly in India. Premium blends such as gunpowder and mint, Taiwanese high mountain tea, oolong tea, Darjeeling green tea, chamomile flowers, jasmine pearls and Eng- lish decaffe are becoming increasingly popular

 There is also a rising affinity towards ice-tea, which currently accounts for over five per cent of entire non-alcoholic beverage market in India.

9.9 FUNCTIONAL FOODS

9.9.1 Overview

The relationship between food and health has long been known to exist and today the fundamental concept of food is changing from one involving the maintenance of life to one maintaining and promoting better health and quality of life by preventing chronic diseases. The increasing interest in health provides investment opportunities in health food categories in many countries including India.

In addition to the various health benefits, functional foods also present economic benefits as they give higher profitability margin as compared to conventional foods. Retail prices of functional foods are typically 30 to 500 percent above the comparable conventional foods

Due to growth of the Indian economy and higher purchasing power parity (PPP) of the consumers in the last decade, consumers are moving towards specific functional foods. Urbanization, changing population demographics and a strong desire among Indian consumers to maintain a healthy lifestyle are additional factors driving this market. Although this is a new concept in India and the market is still in infancy but the demand for functional foods would continue to increase due to their specific health benefits.

Increasing lifestyle diseases and exposure to self-care methods have created tremendous demand and opportunities for various functional foods

Evolution of wellness foods

Naturally healthy Better for you Functional foods Nutraceuticals Pharma foods

Food products with Food products with Food products forti- Food supplements Convergence of food no chemicals, addi- lower levels of “bad fied with ingredients containing nutrition- & pharma addressing tives or artificial ingredients or nutri- or produced / suita- al/ medicinal ingre- long term disease substances, but have ents bly modified to pro- dients sold in medic- specific needs natural health bene- For e.g. reduced fat/ vide adistinct health inal form fits reduced sugar foods benefit

Traditional with First wave of Driven by in- Usually encapsu- Emergence of a wide -spread con- commercially creasing penetra- lated new sumer acceptance – popular tion in existing (pills & capsules) or industry driven by recently being “wellness” food categories and in the form of “self-care” needs of commercialized emergence of nutritional powders consumers new categories and liquids

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9.9.2 Market Size & Projected Growth

Indian market is expected to grow at 10% compared to growth of 6 – 7% in the global market

According to industry sources, India’s

health food market was pegged at

about USD 2.0 billion in 2011 and is expected to grow at a CAGR of 10%

and reach USD 2.9 billion by 2015

Source: Progressive Grocer Releases 2013

Functional and energy foods comprise enhanced cognitive health substances such as omega 3 fatty acids, low fat and reduced sugar etc. Research and development in major food categories such as dairy products like yogurt, juices, health drinks, cereals are bringing about innovations and product development in this segment.

Health and functional food is a niche market segment that is dominated by a few players such as Nestle, Britan- nia, Marico, Kellogg's, PepsiCo, Yakult, Honsha and Kraft Foods who are active and innovative in their product offerings.

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9.9.3 Emerging Categories: Key Opportunities

Anti-ageing Food

Anti-ageing food is still a niche segment in India; As today’s highly aware middle-aged population start ageing this category presents a niche market.

The per capita spend on anti-aging products in India is less than USD 1 compared to a global per capita spend of over USD 25.

Key Points

 Key categories for anti-ageing could include mental/cognitive health, heart health, skin health, etc.  Key ingredients for anti-ageing could include antioxidants, carotenes, flavonoids, resveratrol, etc  Opportunities for nutricosmetics (nutraceuticals targeted at looking young) and cosmoceuticals (use of biologically active ingredients in cosmetics)

Nutraceuticals

Indian nutraceutical market is expected to be driven by growth in segments such as Ayurceuticals

Indian nutraceutical market Major segments could include body  Indian nutraceutical industry is expected to building, weight control, diabetes con- grow from USD 2.2 billion in FY14 to USD 6.1 million in FY20 trol, sports nutrition, meal replacement, etc  Currently dominated by domestic pharmaceu- tical and international supplements players Naturally derived substances, amino acids, soy-based and protein & peptide  Growth is being driven by dietary supplements, supplements could drive growth primarily vitamin and mineral supplements

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Key trends:

 Indian consumers place a high amount of trust in traditional products which could drive growth of Ayurceuticals – ayurvedic ingredients delivered in packaged nutraceutical forms

 Increasing usage of encapsulation and nanoceuticals similar to prevailing global trends

Functional Beverages

The functional beverage market estimated at USD 250 million in India includes energy drinks, sports drinks, functional waters; ready-to-drink tea and coffee; yogurt drinks and smoothies.

With more people becoming health conscious, consumers are increasingly opting for more functional and value- added products. This is being seen more among urban consumers who are extremely time pressed and busy

Market Activity

 French food & beverage giant Danone has been investing heavily in functional beverages in India. Besides marketing Qua in a joint venture with Narang Group, it has now taken B'lue, a water based restorative drink, seeing its potential to grow.

 In the dairy space, Danone last year launched Lassi, taking on the dairy giant Amul, adding to its portfolio of Dahi, flavoured yogurt, creamy yogurt Cremix and Danette smoothies in India.

 NourishCo beverages portfolio, a joint venture between PepsiCo and Tata Global Beverages has products like Tata Water Plus which contains nutrients like copper and zinc and Tata Gluco Plus, a glucose based beverage.

 PepsiCo's Gatorade which is a sports drink caters to the young urban consumer.

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Opportunity

 Presently only a few functional food players are present in the market. However, due to higher profitability margins, there is scope for the new entrants in this industry

 The entry of such players and their success would depend upon their capability to develop a specific idea (particular functional food), the patent or licensing if any, the complexity of the process

involved in synthesis (fortification, plant extraction, chemical synthesis, strain development and

isolation, issues of strain stability etc.), the extent of benefit achieved by the consumers, its rela-

tive cost as compared to the traditional form of that food and also the economies of scale involved in the production.

 In India, the opportunity for sports and fitness products is growing rapidly

 Some of the functional foods carrying high growth potential are snack bars, health drinks, detox, green and herbal tea with medicinal value, products for diabetics, health snacks which are baked and low on cholesterol, protein rich bars and dietary supplements

vegetables in light of nutrition security, growing interest of food processors and

9.9.4 Keymore Players profitable & Their Brands land use has brought in a significant change in the outlook of the producers who started using the arid/semi-arid lands and horticultural

Product crops thatBrand have lesser demandsCompany on water andPack gives Size three to fourPrice times (USD) more remuneration than field crops Organic Chya- Organic India Organic India 200gm, 500gm 3.3, 7.25 wanprash 175 gm (25gm sa- Nutrition formula Gerai Gold Hexagon Nutrition 2.60, 5.20 chet *7), 400gm

Rite Bite Max Pro- Single Serve Bar, Protein Bars Naturell India 1.30, 7.30 tein Box with six bars

Granola, Muesli and Cereal Bar Nice & Natural Max Foods 192 gram 3.65 onwards Range

Blu International and their Indian JV Energy Drink Blu 250ml 1.25 partner, Homeland Foods

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9.10 ORGANIC FOOD

Organic products are grown under a system of agriculture without the use of chemical fertilizers and pesticides with an environmentally and socially responsible approach. India is bestowed with lot of potential to produce all varieties of organic products due to its various agro climatic regions. In several parts of the country, the inherited tradition of organic farming is an added advantage. This holds promise for the organic producers to tap the market which is growing steadily in the domestic market.

Currently, India ranks 10th among the top ten countries in terms of cultivable land under organic certification. The certified area in- Total Market Size of Or- cludes 15% cultivable area with 0.72 million Hectare and rest 85% (3.99 mil- ganic Food in India is lion Hectare) is forest and wild area for collection of minor forest produces. USD 167 million The total area under organic certification is 4.72 million Hectare (2013- 14).

The Government of India has implemented the National Programme for Organic Production (NPOP). The national programme involves the accreditation programme for Certification Bodies, standards for organic production, promotion of organic farming etc. NPOP standards for production and accreditation system have been recognized by European Commission and Switzerland as equivalent to their country standards. Similarly, USDA has recognized NPOP conformity assessment procedures of accreditation as equivalent to that of US. With these recogni- tions, Indian organic products duly certified by the accredited Certification Bodies of India are accepted by the importing countries.

Production Exports

India produced around 1.24 million MT of certified India exported 135 products last year (2013-14) with organic products which includes all varieties of food the total volume of 194,088 MT including 16,322 products namely Sugarcane, Cotton, Oil Seeds, MT organic textiles. Organic products are exported Basmati rice, Pulses, Spices, Tea, Fruits, Dry fruits, to US, European Union, Canada, Switzerland, Aus- Vegetables, Coffee and their value added products. tralia, New Zealand, South East Asian countries, The production is not limited to the edible sector Middle East, South Africa etc. but also produces organic cotton fiber, functional Oil seeds - Soybean (70%) lead among the products food products etc. exported followed by Cereals & Millets other than Among all the states, Madhya Pradesh has covered Basmati (6%), processed food products (5%), Bas- largest area under organic certification followed by mati Rice (4%), Sugar (3%), Tea (2%), Pulses and Himachal Pradesh and Rajasthan. Lentils (1%), dry fruits (1%), Spices (1%) and others.

Source: APEDA, 2014

Organic food sector is growing at about 20% in India, with more than 100 retail organic outlets in Mumbai and about 60 in Bangalore. The India Organic Market is expected to reach USD 173.3 Million by 2017.

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Reaching out to Customers

Marketing remains a challenge in Indian organic industry.  The most effective marketing channel is digital. Orders are processed through websites, SMS and e- mails.  Those not able to use online platforms struggle with reaching consumers.

9.10.1 Major Players

Market Share of Major Players ( million USD )

Morarka 9% 9% 7% Ecofarms 44% 24 Letter Mantra 12% Conscious Food 18% Fabindia 2% Navdanya 4% Organic India

Annual Turnover Company Name ( million USD ) Morarka 13 Ecofarms 14 24 Letter Mantra 11 Conscious Food 20 Fabindia 3 Navdanya 4 Organic India 29 Others 73 Total Market Size USD 167 million Source: Media Release, Jan 2014

1. Organic India, one of the biggest in the business, has seen its revenue rise from USD 4 million in 2008 to USD 29 million in 2013. Best known for its Tulsi Tea, it makes a range of organic products, and is setting up its own standalone stores. It has also launched new products such as organic ghee (using milk from cows fed only organic grass and fodder) and organic chyawanprash.

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2. Conscious Food, perhaps the oldest in the business, launched almost 25 years ago by eco-nutritionist Kavita Mukhi, has grown at a compounded annual growth rate of nearly 35 per cent in the last four years to reach revenues of USD 20 million. It offers organic sweeteners - honey, raw sugar, jaggery - along with cereals and pulses. 3. EcoTokri, an e-commerce site that sells only organic products, the most popular items sold are organic lipstick and organic kajal, followed by organic coconut oil. EcoTokri offers product range from organic tea and flour to organic soaps and accessories and solar nuru lights, however organic cosmetics contribute 60 to 70 per cent to its overall sales. 4. Among those providing EcoTokri with these organic cosmetics is Soul Tree. Founded in 2008, Soul Tree was primarily into exports, but from last year it started selling in the domestic market as well, through sites such as EcoTokri and Natural Mantra as well as brickand-mortar niche organic stores. Like Soul Tree, many other organic product manufacturers, who earlier were mainly into exports, have extended their interest in such products within the country. 5. Bangalore-based Mother India Farms, for instance, was exporting organic fruit pulp, dehydrated fruit and vegetables and a variety of spices it produced to France, Germany and The Netherlands. But now it has a growing Indian market as well.

Recent Developments

 The segment has begun to attract private equity and venture capital firms.

 In March 2014, leading retailer Fabindia acquired a 40 per cent stake in Organic India for USD 2.5 million.

 Restaurants that provide only organic fare have also sprouted. Navdanya, an NGO engaged in organic farming and much else, has set up an organic foods cafe at Dilli Haat, Delhi.

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9.11 GLUTEN FREE PRODUCTS

Gluten is a protein found in wheat, rice and barley that causes intestinal damage to individuals with gluten intolerance.

Gluten-free is one of the fastest growing categories As opposed to the United States and Europe, of functional food in India today. the usage of gluten-free products in India is primarily for a person who is diagnosed with Many restaurants like Indian Accent, Suryaa Hotel in Delhi celiac disease. The awareness about celiac are now catering to this audience and some have even incor- disease and importance of gluten-free porated gluten-free breads and flourless desserts on their products is quite low. The market is geo- regular menus. The consumers primarily include people who graphically skewed. As the cases of celiac travel a lot, are exposed to global trends, obsessed over disease are more common in the northern part weight-loss and careful about healthy eating. of the country, the demand for gluten-free products majorly comes from this region. This is also because wheat is a prevalent cereal in North India. Rice-based foods contribute for most of the South Indian food consumption. Even among health professionals knowledge about gluten free options in India is limited. Most of gluten free reci- pes and literature available does not suit to the needs of Indian taste.

Suppliers of gluten-free products are mostly small and medium-sized companies with their overall product portfolio majorly focused in the gluten-free products and similar health products. Most of these suppliers have their manufacturing and marketing base in Punjab and Delhi region.

Imported products from Europe and US also have good penetration in the gluten-free segment. Bakery and confectionery products are the most prevalent gluten-free products in Indian market. Staple food and other ready to eat food products are also gaining importance in the market.

Food giants such as Nestle, Hershey's, and ITC are yet to introduce gluten-free products in the Indian market. This is due to low demand, which may not be commercially viable for the big participants. However, most of these global food giants have gluten-free products in their products offering in the United States and Europe. Gluten-free products are sold majorly through health stores. However, in some cities of Pun- jab and areas in Delhi, this product is finding its way through retail stores as well.

A survey conducted on Gluten-free diet, diagnosis, follow-up, support and psychological issues in India:

 People who participated belonged to different North Indian states like Punjab, Delhi, Uttar Pradesh, Ra- jasthan, Chandigarh, Haryana, Himachal Pradesh and Madhya Pradesh, where wheat is the staple diet.

Majority were in opinion that celiac support groups are almost nonexistent in India. The need for societies was felt basically to improve the interaction among those who have this, information about GF outlets and new upcoming research. Professional needs, transmission to kids, marriage and peer pressure were their major concerns. Marriage and managing GFD after marriage were important concerns for unmarried females.

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Lack of labeling about gluten status in marketed products like chocolate, biscuits, ice creams, etc. was another problem, as there is no legislation for gluten labeling in India. Most difficult part was managing GFD when they go out for traveling, birthdays, marriages or other social functions, where no gluten free food is available.

Gluten Free Diet in India:

Breakfast Lunch/dinner Restaurants GF flour •Poha, pulav, besan puda, •Dal chawal, GF roti sabji, •Masala-dosa, idli- •Maize, gram, sorghum besan chilla, yogurt, chicken/meat/fish, beans, sambhar, uttapam, (jowar), bajra, buckwheat, cornflakes, dosa, idli, chole chawal chicken/meat, dal rice fruits makhni/paneer sabji with •Chapati made of rice, fried rice •Amaranth flours in •Dal chilla, boiled potato, makki/jowar/buckwheat/ different combinations egg omelet, chana, daliya, amaranth/rice/pulses in •Chilli potato, french fries, GF paratha with different combinations curd rice, paneer tikka, milk/tea/coffee. egg curry, popcorn, seafood, shakes, ice creams

Few Indian manufacturers have started marketing these GF products at small scale, although their gluten free claim for many still remains unchecked.

Some of the food stores having Gluten Free products in India are:

 Nature’s Basket o 32-store chain of premium gourmet stores strategically located at high street locations in Mumbai, Delhi/NCR, Pune, Hyderabad and Bangalore.

 Food Hall o 6 stores present across Mumbai, Bengaluru, New Delhi, Pune and Gurgaon.

 Defence Store in Defence Colony, New Delhi

 Gourmet Store (New Delhi)

 Lucky Store (New Delhi)

 Steak House (New Delhi)

 Kipps Mart (Ludhiana)

 Prakash Bakery (Jalandhar)

 Amma Nana (Chennai)

 Dorabjee's (Pune)

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 Max Foods India Pvt Ltd o Will market speciality food products from US-based Dr Schar Group, in India. Max will be distributing the latter's gluten-free products in major Indian grocery stores.

9.12 LACTOSE FREE FOOD

The organised dairy market is expected to more than double, largely driven by the growing demand for value added milk products.

Value added dairy products such as specialised milk and cheese are seeing a fast growth in the Indian market. It is expected to see compound annual growth rate of 20 to 30% in next 4-5 years.

"While the milk business is growing at 7%, value-added products are growing by 15-18%" —M Sambasiva Rao, president, Heritage Foods

Rising consumer interest in high-protein diets, greater affordability owing to increased disposable incomes and increasing awareness and availability of dairy through channels such as organised retail are driving this growth.

Some of the popular variants in value added milk are Lactose free milk organic milk and Slim milk (Skimmed milk)

Lactose Free Dairy Products

One of the categories which is gaining increased attention in the recent times in the value added milk products is lactose free dairy products.

Although the awareness about the condition in India is very low but the awareness about the symptoms is quite high. Overall Lactose intolerance in India is in the range of 40-50%. With Southern & Western regions showing high incidence of lactose intolerance, these regions would be contribute to the growth of lactose free products.

Market Players

 Wholly Cow is a brand that operates in Haryana and it’s products are distributed across various outlets in the Delhi – Gurgaon belt. They have a wide range of organic milk products like ghee, paneer, and dahi. They also have different milk varieties like skimmed, whole, toned and the lactose free version which is delivered from Grass to Glass as their tagline states.

 White cub frozen desserts is a Delhi based company that manufactures lactose free ice creams and desserts. White Cub Dairy free Ice creams are available in Delhi NCR predominantly at Godrej’s Nature’s Basket and FoodHall stores

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Top 5 brands of Value added milk in India

Brand variants Price/litre (INR) Channels Region Covered Doctor Moo Plain Organic 60 Website Mumbai Pride of Cows Mumbai, Plain Organic 80 Website (Parag Milk Foods) Pune Raw, Pasteurized, Pas- Sarda Farms 80 Website Mumbai, Nashik teurized Toned Whole, toned, Gurgaon , Wholly Cow 70 Available in stores skimmed, lactose-free Delhi Astra Dairy Plain 50 Call or email Chennai Outlets & Stores, Akshayakalpa Farms Organic Bangalore Door Delivery

9.13 VEGAN FOOD

Veganism as a concept is not yet very popular in India. The widely found food concept in India is vegetarianism which includes dairy but no fish.

The term ‘vegan’ was first used in the UK in 1944; a proper vegan community had already been in place in India for 20 years.

Lacto-vegetarians consume dairy products, and consumption in India is quite high. India is the number one milk-producing country in the world, and dairy products are a vital part of the diet, in both rural and urban area. Veganism runs against all of this.

Availability

 Vegan food can be found easily in tier 1 cities with the increased usage of internet and awareness. Some of the products include vegan cakes, soya products, gelato ice-cream.

 It is also interesting to know that many Indian foods, are naturally vegan, such as dals, pulses, and leg- umes.

 Mumbai had a wider selection of foods and products than cities like Indore, yet found vegan products to be cheap, or easily available. Soya tofu that have any same level of fat cost Rs 150 for a small pack.

 The Indian Vegan Society, a branch of the Vegan Society in the UK, is bringing veganism more mainstream through concerts, book events, and excursions. Even Café Coffee Day now has a vegan shake

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10.0 Government Regulations + Import Re- strictions

India is in the process of economic reform and progressive integration with the global economy that aims rapid and sustained growth. However, India's trade regime and regulatory environment remains comparatively restrictive.

India still maintains substantial tariff and non-tariff barriers that hinder trade with their global counterparts. In addition to tariff barriers to imports, India also imposes a number of non-tariff barriers in the form of quantitative restrictions, import licensing, mandatory testing and certification for a large number of products, as well as complicated and lengthy customs procedures.

According to Food Safety and Standards Act (FSSA), Import Regulations state that:

 Foreign firms must obtain a license as Food Business Operator under "importer" category from the Cen- tral Licensing Authority under FSSA Regulations, after complying with all FSSA regulations

 Any person engaged in import of food other than through personal baggage or gifts or for medicinal use must apply for a license to the Licensing authority in conformance with the procedure laid down in FSSA Regulations provided that:

 The importer must be registered with DGFT (Directorate General of Foreign Trade) and possess a valid IE (Importer Exporter) Code.

The Licensing Authority may, suspend or cancel Food Importer license granted under the regulations if:

 There is sufficient ground to believe that the Food Importer has failed to comply with the conditions of his license.  If there is a sufficient ground to believe that the Food Importer on several occasions have attempted to import unsafe food or food from banned sources or re-channeled imports through third countries.

Every Food Importer must, on or before the thirty-first day of May of each year, submit a return, in the manner as may be prescribed by Food Authority, in Form B of the FSSA Regulations to the Licensing Authority in respect of each class of food articles imported by them during the previous financial year.

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 Firms cannot import food articles which have been prohibited under section 11 of the Customs Act, 1962 (52 of 1962) and all the provisions of that Act will have effect accordingly subject to the specific provisions contained in FSSA and its Regulations.

 The Food Authority will periodically review the risks posed by different categories of food imports and categories them in different risk categories such as High risk, Medium risk and Low risk articles.

The Importers/ Foreign firms must also, in accordance with the Customs Act, adhere to the following formalities:

 Test/Analysis Report from an authorized laboratory in the country of origin, if any.

 Affidavit stating that the imported food articles comply with the laws of India and meet the standards de- fined by the Food Authority

 Country of Origin Certificate

 Transit countries list

 Declaration of end-use

 Temperature profile report, etc. as may be required

 Bill of entry, examination order from the customs department

 Stuffing list

 Representative sealed sample from the same batch in case of imported food article being packed in sealed containers in order to maintain aseptic or hygroscopic conditions

Some other important regulations laid by the FSSAI are:

 Any Food Importer licensed under the FSS regulations who is also licensed as a 100 per cent export- oriented unit under FSS regulations, shall be designated as a Food Export Oriented Unit (FEOU). Food imported by an FEOU or processed food manufactured from food articles imported by the FEOU, cannot be released for domestic consumption without the prior permission of the Food Authority.

 FEOUs cannot sell unutilized imported food, or rejected exported food in the domestic market or trans- fer them to any other Export Oriented Unit (EOU) / Electronic Hardware Technology Park (EHTP) / Software Technology Park (STP) /Bio-Technology Park (BTP)/ Special Economic Zone (SEZ) unit.

 Food imports by agencies entitled to avail of the provisions and exemptions granted by the Vienna Con- vention on Diplomatic Relations, 1961 are released expeditiously.

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 The FSSA calls for the post of an Inspection Officer to routinely sample imported food articles (both potential as well as existing import articles) for accordance with FSS Regulations. These officials also test various samples for compliance with relevant packaging & labeling guidelines under the FSSAI.

 A no Objection certificate is required to be issued by the Inspection Officer/ relevant authority. It serves as a recommendation for the Customs Department to proceed with the issue of an Import license during the application process

 The import of meat and meat products of any kind including fresh, chilled and frozen meat, tissue or or- gans of poultry, pig, sheep, goat; egg & egg powder; milk & milk products; and pet food products of animal origin require a Sanitary Import Permit which must be obtained from the Department of Animal Husbandry, Dairying and Fisheries (DAHDF).

 Foreign firms looking to enter the Indian market must also fulfill registration under VAT and CST; registration under Shops & Establishment Act; and registration as an importer under Legal Metrology before importing goods.

10.1 SECTOR SPECIFIC GOVERNMENT POLICIES

We have provided below some of the sector specific regulations laid down by the Government of India:

Fruits and vegetables

 Though no industrial License is required for setting up fruits and vegetables processing Industries, setting-up 100 percent Export Oriented Units require Specific Govt. approvals. Many fruits and vegetables processing industries are eligible for automatic approval of Foreign Technology Agreement and up to 51 percent foreign equity participation including tomatoes, mushrooms and other frozen vegetables, fruit, nuts, fruit-peel, fruit jellies, marmalades , fruit juices and vegetable juices etc.

 This sector is regulated by the fruit products order, 1955(FPO), issued under the essential commodities act.

 All processing units are required to obtain a license under this order.

 Some items like: pickles & chutneys, tapioca sago and tapioca flour are reserved for exclusive manufacture in the small scale sector

 Export of fruit & vegetable products is freely allowed.

Fisheries

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 Foreign equity is permitted in fish processing sector. Fish processing projects with a minimum of 20percent value addition can be setup as 100 percent Export oriented Units.

 All items can be exported freely except for silver pomfrets of weight less than 300grams.

 Export of marine products is allowed only after registration of the units as an exporter with the marine products Export Development

 Authority (MPEDA), Cochin.

Meat and Poultry

 The Meat products Control Order, 1973 under the essential commodities Act, 1954 regulates the manufacture, quality and sale of all meats products.

 Export of meat is subjected to pre-shipment inspection and a certificate is required from state Animal Husbandry Department/Directorate of Marketing and Inspection.

 Slaughter of cows is banned in most of the states. Export of beef is prohibited.

 A No objection Certificate (NOC) has to be obtained from the District administration for the slaughter of cattle, buffaloes etc.

 Permission from the civic bodies/State Government (Department of Animal Husbandry) is also required before setting up a meat processing unit integrated with a slaughter house.

Milk and Milk Products

 Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000litres of liquid milk per day or milk solids up to 500 tonnes per annum.

 All the milk products except malted foods are covered in the category of industries for which foreign equity participation upto 51 percent is automatically allowed.

 Ice- Cream which was earlier reserved for manufacturing in the small scale sector has now been de- reserved. As, such no License is required for setting up of large scale production facilities for manufacture of ice-cream.

 Subsequent to de canalization, exports of some milk based products are freely allowed provided these units comply with the compulsory inspection requirement of concerned agencies like: National Dairy Development Board, Export Inspection Council etc.

Grains

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 The Rice Milling Industry (regulation) Act 1958 & Rice Milling Industry (Regulation and Licensing) rules 1959 have been repealed from 28 May, 1997.

 Rice milling and pulse milling sectors, which were earlier reserved for the small scale sector, have now been de reserved.

 Since liberalization, there is no license requirement for setting up or capacity expansion of roller flour mills. The mills can obtain their wheat supply from any source.

 There is no license requirement or price/distribution controls on manufacture of wheat products.

Packaged Foods

 The industry is de licensed and automatic approval for foreign investment up to 51 percent of equity (except for items like malted food and items which are reserved for production in small scale sector) is granted.

 The setting up of 100% export oriented units require specific government approval

 The packaging laws and regulation affecting food products are mainly covered under the Standards of Weights and Measures (Packaged commodities) Rules, 1977 (SWMA) specifying the quantity and package labeling regulation for all products.

 The prevention of food adulteration Act, 1954 and the Prevention of Food Adulteration rules, 1955 (PFA) specify food adulteration/contamination norms and permissible ingredients from consumer health and safety point of view.

 The Agmark Rules relate to the quality specification and needs of certain agricultural products to be eligible for Agmark certification.

10.2 FOREIGN DIRECT INVESTMENTS

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The food sector in India is one of the sectors, where 100% FDI is allowed. Thus, the foreign companies do not require prior government approval to start the trading into India.

However, overseas companies operating in the food industry who have plans to foray into the Indian market through the retail route have to follow the following guidelines laid down by FIPB (Foreign Investment Promotion Board).

Restrictions on Foreign Direct Investment in Single and Multi Brand Retail:

In January 2012, the Indian Government eased norms and allowed 100% foreign direct investment (FDI) in

single brand retail. In this case, a particular foreign brand invests in setting up manufacturing unit, brings the technology and sells the same brand that is sold internationally. The product should also be branded during the manufacturing process. In cases where the company intends to invest more than 51% in the Indian

entity, 30% of the procurement has to be done locally.

Restrictions in Multi Brand Retail:

While the government has recently permitted 51% FDI in Multi Brand Retail, the same has come with certain

caveats. Hence, we are witnessing a “wait and watch” by the large global players. For instance, many global retailers like Wal-Mart, Tesco and Carrefour have been waiting for further clarifications in the policy along with

the general elections of 2014.

Several conditions for an FDI in multi brand retail include:

 A minimum investment of USD 100 million of which at least 50% is needed to be invested in “back-end infrastructure”

 Minimum 30% of products to be sourced from local “small scale industries

 Permission to open stores only in cities with population in excess of a million (there are 51 such cities in India)

Wal-Mart, the world’s biggest retailer recently announced the termination of its joint venture with Bharti Enter- prises. The Bharti Wal-Mart Joint venture has been operating wholesale cash and carry stores in India, which Wal-Mart plans to acquire. The firms had mutually agreed to independently own and operate separate business segments in India and discontinue the franchise agreement in retail segment

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Key The single brand multi retail segment is receiving more encouraging response from global retail brands as compared to multi brand retail. Many global brands are Insight adopting a ‘wait and watch’ strategy due to lack of clarity in the policies legislated by Government of India in the multi-brand retail sector.

10.3 IMPORT DUTIES

Total Import HS Code S.NO ITEM Duty Series (%)

1 2 Meat and edible meats 36.206

2 18 Cocoa and Cocoa productions 52.847

3 18 Chocolate and Chocolate productions, Cocoa butter, 52.847

4 19 Import duty on Pasta 44.49

Live Fish (Ornamental fish, Trout, Eels, Carp, Bluefin tunas, Southern 5 301 36.136 bluefin tunas)

6 301 Fish, Fresh or Chilled, Excluding fish fillets 36.136

7 303 Fish frozen, excluding fish fillets and other fish meat 36.136

Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted, or in brine, crusta-ceans, in shell, cooked by steaming or by 8 306 36.136 boiling in water, whether or not chilled, frozen dried, salted or in brine, flours, meals and pellets, of crustaceans, fit for human consumption

Moluscus, whether in shell or not, live, fresh, chilled, frozen, dried, 9 307 36.136 salted, or in brine

Milk and cream, not concentrated nor contain-ing added sugar or other 10 401 36.136 sweetening matter

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Milk and cream (skimmed, milk food for babies, other), concentrated or 11 402 68.27 containing added sugar or other sweetening matter

Milk and cream (whole milk, milk for babies, condensed milk, ), con- 12 402 36.136 centrated or containing added sugar or other sweetening matter

13 402 Condensed Milk 52.847

14 403 Yoghurt, buttermilk 36.136

Whey, concentrated, evaporated, or condensed, liquid, or semi-solid, 15 404 36.136 dry, blocks, powdered

16 405 Butter and other fats and oils derived from milk, dairy spreads 46.848

17 406 Fresh cheese, including whey cheese and curd 36.136

Grated or powdered cheese, of all kinds, processed cheese not grated or 18 406 36.136 powdered

19 406 Other cheese 46.848

20 407 Birds eggs, in shells, fresh, preserved or cook 36.136

21 408 Birds eggs, not in shell and egg yolks 36.136

22 409 Natural Honey 68.272

Sausages and similar products of meat, meat offal or blood, food prepa- 23 1601 123.974 rations based on these products

24 1602 Prepared or preserved meat 44.491

25 1604 Prepared or preserved fish 44.491

Vegetables, fruits, nuts and other edible parts of plants prepared or 26 2001 44.491 preserved by vinegar or acetic acid

Tomatoes prepared or preserved otherwise than by vinegar or acetic 27 2002 44.491 acid

Mushrooms and truffles prepared or preserved otherwise than by vine- 28 2003 44.491 gar or acetic acid

Other vegetables prepared or preserved otherwise than by vinegar or 29 2004 44.491 acetic acid

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Other vegetables (like homogenised vegetables, potatoes, peas, beans, 30 2005 asparagus, prepared or preserved otherwise than by vinegar or acetic 44.491 acid

Vegetables, fruits, nuts, fruit-peel, and other parts of plants, preserved 31 2006 44.491 by sugar (drained, glace, crystallized)

Jams, fruit jellies, marmalades, fruit or nut puree, and fruit or nut pastes, 32 2007 44.491 obtained by cooking, whether or not containing added sugar

Ground nuts, cashew, fruit, nuts and other edible parts of plants, other- 33 2008 wise prepared or preserved, whether or not containing added sugar or 44.491 other sweetening, matter or spirit, not elsewhere specified or included

Fruit juices, and vegetable juices, unfermented and not containing added

spirit, whether or not containing added sugar or other sweetening matter 50.169 34 2009 Orange Juice- Frozen, Not Frozen, Of a Brix Value not exceeding 20

Grapefruit, Tomato, Pineapple, Grape, Apple, Cranberry, Mango, Mixture 44.49 of Juices, Frozen or Not Frozen, of Brix Value not exceeding 20

35 2101 Coffee, tea, instant tea 52.847

36 2103 Sauces and preparation 52.847

37 2104 Soups and broths, preparations, composite food preparations 52.847

38 2105 Ice cream and other edible ice 44.491

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10.4 SPECIFIC IMPORT RESTRICTIONS

The import restrictions for some of the focus foods, from the view point of products manufactured in Switzerland are elaborated below

Chocolates

Currently, India has banned imports of chocolate and chocolate products, along with milk and milk products that contain melamine, which is considered harmful for humans.

At present, India has banned the import of dairy products (which include chocolate and milk products) from China because they contained melamine

Juices

Extensive product documentation of ingredients are required for food safety when importing juices to India. This includes product specifications, instructions on how to store and process, information on quality assurance (e.g. HACCP) and/or even an ISO certification

Labeling Requirements includes the following information to be printed on the label of the product:

 Name of the product

 Weight or volume of the drink

 Ingredients  Date Marking and storage instructions  Instructions for use  Name and address of manufacturer  Place of Origin

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Ready To Eat

For ready to eat products that are imported to India, the package of the food has to carry the name and complete address of the importer in India.

If the product manufactured is packed or bottled in India, the package containing such food article has to bear the following on the label,

 Country of origin of the food article  Name and complete address of the importer and  The premises of packing or bottling in India.

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11.0 Packaging & Labelling

Packaging is an indispensable part of the food industry as a great deal of information needs to go on processed food products and there are specific labelling requirements depending on the ingredients. The necessary information is printed on a label and has to be fixed to the product. We have laid down below some key government regulations with regards to packaging for the food industry.

Packaging and Storage Requirements

According to Prevention of Food Adulteration Act (PFA): A utensil or container made of the following materials or metals, when used in the preparation, packaging and storing of food shall be deemed to render it unfit for human consumption:

 Containers which are rusty  Enamelled containers which have become chipped and rusty  Copper or brass containers which are not properly tinned  Containers made of aluminium not conforming in chemical composition to IS:20 specification for cast aluminium and aluminium alloy for utensils or IS:21 specification for wrought aluminium and aluminium alloy for utensils  Container made of plastic materials not conforming to the following Indian standards specification, used as appliances or receptacles for packing or storing, whether partly or wholly, food articles, namely:

 IS: 10146 (Specification for Polyethylene in contact with food stuffs)  IS: 10142 (Specification for Styrene Polymers in contact with foodstuffs)  IS: 10151 (Specification for Poly Vinyl Chloride (PVC) in contact with food stuffs)  IS: 10910 (Specification for Polypropylene in contact with foodstuffs)  IS: 11434 (Specification for Ionomer Resins in contact with foodstuffs)  IS: 11704 (Specification for Ethylene Acrylic Acid (EAA) co-polymer)  IS: 12252 (Specification for Polyalkylene Terephathalates (PET))  IS: 12247 (Specification for Nylon 6 polymer)  IS: 13601 – Ethylene Vinyl Acetate (EVA)  IS: 13576 – Ethylene Metha Acrylic Acid (EMAA)

 Tin and plastic containers once used shall not be re-used for packaging of edible oil and fats

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Declarations & Labelling

As per the PFA act, the label on the packaged food should contain the following

 The name, trade name or description of food contained in the package

 The names of ingredients used in the product in descending order of their composition by weight or volume as the case may be. If artificial flavouring is used, the chemical names of the flavour need not be declared, but, in the case of natural flavouring substances or nature-identical flavouring substances, the common name of the flavour is to be mentioned on the pack

 If the food contains any ingredient in part or whole from animal origin (meat, fish, poultry eggs), a declaration is to be made by a symbol and a colour code stipulated for this purpose, to indicate the product as Non-vegetarian Food. The symbol should be on the principal display panel in close proximity to the name or brand name of the food. The symbol shall consist of a brown colour filled circle. Similarly, for vegetarian food a similar symbol with green colour circle and square shall be displayed

Non Vegetarian Food Vegetarian Food

The specifications of the symbols are mentioned in the table below:

Area of Principal Display Panel Minimum Size of Diameter in mm

Up to 100 cm square 3

4 Above 100 cm square up to 500 cm square

6 Above 500 cm square up to 2,500 cm square

8 Above 2,500 cm square

Source: Industry sources

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Information of the Exporter to be declared on the package

 The name and complete address of the manufacturer, or vendor or packer to be declared

 A declaration is to be made for the net weight or number or measure of volume of content in the case of biscuits, breads, confectionery and sweets where the weight may be expressed as average net weight or minimum net weight

 The “batch number” or “lot number” or “code number” may be declared either in numerical or alphabets or in combination, preceded by the words “Batch No.” or “Batch” or “Lot No.” or “Lot” or any distinguishing prefix

 The package should declare: The month and year in capital letters up to which the product is best for consumption, in the following manner, namely:- “BEST BEFORE …………….. MONTHS AND YEAR” or “BEST BEFORE …………….. MONTHS FROM PACKAGING” or “BEST BEFORE …………….. MONTHS FROM MANUFACTURE” or “BEST BEFORE UPTO MONTH AND YEAR ………….”

In case of package or bottle containing sterilized or ultra high temperature treated milk, soya milk, flavored milk, any package containing bread, snacks, burgers, pizza, dough nuts, dairy products, or any un- canned package of fruits, vegetable, meat, fish or any other like commodity, the declaration be made as follows:

“BEST BEFORE …………………. DATE/MONTH/YEAR” Or “BEST BEFORE ………………… DAYS FROM PACKAGING”

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12.0 Key Influencers

Regulatory bodies, research institutes, government departments and industry organizations play an important role in policy formulation and adoption of new technology. We have enlisted below some of the key influencers in the Indian Food Industry:

S.No Event Name Website

Agricultural & Processed Food Products Export Development Au- 1 www.apeda.gov.in thority

2 Bureau of Indian Standards www.bis.org.in

3 Central Food Technological Research Institute www.cftri.com

4 Central Institute of Post-Harvest Engineering & Technology www.ciphet.in

5 Directorate of Marketing & Inspection www.agmarknet.nic.in

6 Food & Nutrition Board www.wcd.nic.in

7 Food Corporation of India www.fciweb.nic.in

8 Food Safety & Standards Authority of India www.fssai.gov.in

9 Forum of Indian Food Importers www.fifi.in

10 Indian Agricultural Research Institute www.iari.res.in

11 Indian Council of Agricultural research www.icar.org.in

12 Indian Institute of Crop Processing technology www.pprc.gov.in

13 Indian Institute of Packaging www.iip-in.com

14 Indian Institute of Toxicology Research www.iitrindia.org

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15 Institute of Packaging Machinery Manufacturers of India www.ipmmi.org

16 International Crops Research Institute for the Semi-Arid Tropics www.icrisat.org

17 National Dairy Research Institute www.ndri.res.in

18 National Horticulture Board www.nhb.gov.in

19 National Institute of Nutrition www.ninindia.org

20 National Meat & Poultry Processing Board www.nmppb.gov.in

21 National Research Development Corporation www.nrdcindia.com

22 National Institute of Nutrition www.ninindia.org

23 National Meat & Poultry Processing Board www.nmppb.gov.in

24 National Research Development Corporation www.nrdcindia.com

25 Spices Board India www.indianspices.com

26 Tea Board of India www.teaboard.gov.in

27 The Central Potato Research Institute www.cpri.ernet.in

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Industry Associations

S.No Name Website

Agro & Food Processing Equipment & Technology Providers 1 www.aftpai.org Association of India

2 All India Air Conditioning & Refrigeration Association www.aiacra.com

3 Association of Food Scientists and Technology www.afsti.in

4 Confederation of Indian Food Trade and Industry www.cifti.org

5 Indian Spice and Foodstuff Exporters Association www.isfeaindia.net

6 Protein Foods & Nutrition Development Association of India www.pfndai.com

7 The All-India Food Processors Association www.aifpa.net

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13.0 Key Challenges

We have mentioned below some of the key challenges faced by the Indian food sector which hinders in the smooth functioning of not only the domestic stakeholders but also affects the overseas food exporters into India.

1. Infrastructure facilities

India lacks majorly on infrastructural facilities in terms of availability of proper cold chain facilities. This hinders large scale import and storage of highly perishable items such as poultry, dairy products etc into India.

Many retail giants have made investment in not only the front end but back- end including cold chain facilities to strengthen their supply chain.

2. Lack of Well Developed Transport and Logistics

India lacks proper supply chain processes in order to provide standard prod-

uct quality to customers across stores. The fragmented supply chain and dis- organized back-end processes present a challenge to outlets in ensuring con- sistency and quality in food products.

To secure their presence in the market, big players have begun investing in expanding their cold chain and logistics network.

3. Lack of Proper Distribution Channel

The Indian food processing and food retail market faces challenge with

regards to a fragmented market. Majority of the Indian food retail segment is dominated by the unorganised sector. Hence, it becomes difficult to target potential point of sales. This includes the corner “kirana shop” in both ur-

ban and rural India.

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4. Government Policies

India's trade regime and regulatory environment remains comparatively restrictive towards import of food products.

India maintains substantial tariff and non-tariff barriers to protect the local manufacturing industry vis-à-vis their global counterparts. In addition to

tariff barriers to imports, India also imposes a number of non-tariff barriers in the form of quantitative restrictions, import licensing, mandatory testing and certification for a large number of products, as well as complicated and

lengthy customs procedures.

In India, for importation of food products, health & hygiene requirements

are very strict, therefore all exporters are urged to comply with the quaran- tine regulations laid out.

5. Price-sensitive Consumer

Though India is often regarded as a large market in terms of sheer size, it is also prudent to note that majority of the population is a very price sensitive section who look at getting “more value” to their spend. Also, India is a

heterogeneous market which requires customized marketing strategy to get

a foothold of the target segment within the big population.

A notion that translates “imported” food items to “luxury or premium” food is also widespread, which is slowly changing with the change in the demographics who are more open to experiment with their daily dietary needs. This is the target section of the population who have started adding functional foods for various reasons such as disease management, lifestyle diseases and a conscious effort for a healthy living.

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14.0 Major Industry Events

S. No Event Name Website Date

1 Bakery Business Trade Show www.bakerybusiness.net 25 – 27 November 2015

2 ICE India Expo www.indiacoldchainexpo.com 16 – 18 December 2015

3 Dairy Universe India www.dairyuniverseindia.com 14 – 16 December 2015

4 Fine Food India www.finefoodindiaexpo.com 03 – 05 December 2015

Food & Grocery Forum 5 www.foodandgroceryforumindia.com 14 – 15 January 2015 India

6 International Horti Expo www.hortiexpo.com 2016, TBA

7 International Foodtec India www.foodtecindia.com 14 – 16 September 2015

8 Annapoorna World of Food www.worldoffoodindia.com 14-16 September 2015

9 PackTech India www.packtech-india.com 15 – 17 December 2015

10 Agro Tech 2014 www.agrotech-india.com 19 – 22 November 2016

11 Ahar International www.aaharinternationalfair.com 10-14 March 2015

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