Food Processing Industry- India

Processed food can be referred as ready to eat,easy & convenient food, that one can have when he is in hurry. The methods used for processing foods include canning, freezing, refrigeration, dehydration and aseptic processing. It is a common belief that processed food are not good for health. It is true that many processed foods are made with trans-fats, saturated fats, and large amounts of sodium and sugar. These types of foods should be avoided, or eaten very often. But in certain cases processing makes the food even more nutritious & healthier. Orange juices are generally fortified with extra calcium to make it even better. Frozen vegetables preserve vitamins and minerals. Even milk is pasteurized to kill bacteria and then homogenized to keep fats from separating. One of the benefits of preserving food is that they are available all round the year.

The Indian food processing industry

The Indian food processing industry can be broadly divided into segments like dairy products, meat, poultry & fishes, processed fruits & vegetables, cereals, beverages & confectionery. The demand of processed food is rapidly increasing in the Indian scenario. India is one of the fastest growing economies in the world, this growth is driving income levels to unprecedented levels across all strata’s of society, which has led to high demand of food & a change in the eating habits of people. Also processed food is convenient food, that one can easily have in today’s busy life. The increase in the number of retail food outlets & shopping malls are also a major reason why there has been a gradual shift from the traditionally cooked food to packaged food. The Indian food processing industry was the seventh largest sector attracting foreign direct investment. The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that.Note most of the FMCG Companies in India are involved in Food Processing as well or are expanding into that area given the massive growth in the future.

LIST OF MAJOR FOOD PROCESSING COMPANIES IN INDIA

1. DABUR FOODS LTD. – DABUR Foods is a part of ten DABUR group.DABUR India Limited is the fourth largest FMCG Company in India with Market Capitalisation of Rs.16,000 crores. Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods. For the past 125 years, the company has been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. They touch the lives of consumers, in all age groups, across all social boundaries. Its processed foods includes fruit juices -with the brand names of Real, Burrst & Activ, spices paste – Hommade, sauces – Capsico & refreshment drinks – Lemoneez. It earned a revenue of Rs.900 crores & a net profit margin of 14% in Dec’10.
2. GODREJ BEVERAGES & FOODS LTD. – With Rs. 11,000 crores as the market capitalisation, the company is largest marketers of toilet soaps in the country and are also leaders in hair colours and household insecticides. The revenues generated by the company was Rs.350 crores in 2010 with net profit margin of 18%. The major brands are Good knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and Snuggy are household names across the country. Godrej Hershey (GHL) operates in Food and Beverages space. Formed in 2007, a Joint Venture (JV) between The Hershey Company (USA) and Godrej Group, GHL operates in multiple categories such as confectionery, beverages, and grocery items. In its portfolio, GHL has brands like Hershey, Mahalacto, Nutrine, Jumpin & Sofit. Nutrine Confectionery company, forms a key portfolio for Godrej Hershey today. The Nutrine portfolio has products like Maha Lacto, Maha Choco, Nutrine Eclairs, Nutrine Lollipop, Nutrine Santra Goli, Aasay, Kokanaka and Honeyfab in the hard candy, éclairs, toffee, lollipop and roll formats. The Beverage portfolio consists of Jumpin (Fruit Drinks), Xs (Juices and Nectars) and Sofit (Soya Milk). Sofit is the market leader in the niche but fast growing soyamilk market.
3. GUJARAT COOPERATIVE MILK MARKETING FEDERATION (AMUL) – is India’s largest food products marketing organisation with annual turnover (2010-11) US$ 2.2 billion. GCMMF is the co-operative organisation that manages AMUL. Amul is the largest food brand in India. AMUL is a dairy co-operative in India since 1946. The GCMMF is jointly owned by millions of milk producers on Gujarat. AMUL has made India the largest producer of milk and milk products in the world. It is also the world’s biggest vegetarian cheese brand. It is also the world’s Largest Pouched Milk Brand. The farmers of Gujarat own the largest dairy plant in Asia – Mother Dairy, Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day. It has also entered into ice-creams & pizzas market. The product range includes bread spreads – AMUL butter, AMUL lite, Margarine; cheese range – cheddar cheese, processed cheese etc.;fresh milk from full cream to slim n trim(double toned milk); milk powders including Amulya dairy whiteners, infant milk food; Milk drink – Kool Flavoured Milk, Amul Kool Cafe, Koko, Chocolate Milk,Nutramul Energy Drink; Curd Products like Masti Dahi, Spiced Butter Milk,Amul Lassee, Amul Flaavyo Yoghurt; Pure Ghee- Amul & Sagar Pure Ghee; Sweetened Condensed Milk- AMUL Mithaimate; Mithaee Range – AMUL Shrikhand, Amul Mithaee Gulabjamuns, Amul Basundi,Avsar Ladoos; Ice-cream- Sundae Range, probiotic,sugarfree; Chocolate & Confectionery – Amul Milk Chocolate, Fruit & Nut Chocolate, Chocozoo, Bindass & Fundoo.
4. HINDUSTAN UNILEVER LTD. – With a market capitalization of Rs. 61,000 crores, the Company is a part of the everyday life of millions of consumers across India. The company has categorised business segments like soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers.HUL is one of India’s leading food companies. The major food brands & their products are Annapurna – wheat flour, Brooke Bond Taaza – tea, Red Label – tea, Bru – coffee, Kissan – tomato ketchup, Knorr – soups, Kwality Walls – ice creams, Lipton – tea,Modern – bread. The company earned revenues of Rs. 5,000 crores with a net profit margin 12%. Its parent company is Unilever, which holds about 52 % of the equity. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe and Pureit.
5. ITC – With a market capitalization of Rs.137,000 crores, ITC is one of India’s foremost private sector companies. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC is one of the country’s biggest foreign exchange earners (US $ 3.2 billion in the last decade).ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The major food brands are Sunfeast, Aashirvad, Bingo, Candyman, Mint-o.
6. BRITANNIA – Britannia strode into the 21st Century as one of India’s biggest brands and the pre-eminent food brand of the country. In 2002, it entered into a joint venture with Fonterra, the world’s second largest Dairy Company, to form Britannia New Zealand Foods Pvt. Ltd. The food range includes Biscuits, Dairy products like cheese, daily bread. Britannia Biscuits are the most used products by its consumers, so much so that for the first time in India the company introduced Britannia NutriChoice ‘Diabetic Friendly’ Essentials specially designed for people with diabetes & Nutrichoice Digestive Biscuit which has added fibre to help in digestion. The company’s factories have an annual capacity of 433,000 tonnes. Some of the well known biscuit brand names are VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more.
7. KOHINOOR FOODS LTD. – Today, in India and in over 60 countries, consumer’s lives have been touched by not only some of the finest basmati rice brands, but also a wide assortment of food products that includes Basmati Rice, Ready to Eat products, Cook-in Sauces and Cooking Pastes to Spices, Seasonings and Frozen Food. It’s a feat that Kohinoor Foods Ltd. pulled off by spreading the authentic India flavour abroad. more than 200 thousand retail outlets, 100 super distributors and 600 stockists.
8. MOTHER DAIRY – is now a wholly owned company of the National Dairy Development Board (NDDB). It was set up in 1974 under the Operation Flood Programme. Mother Dairy is a leading name in milk & dairy products like Milk, Dahi, Ice creams, Cheese and Butter, Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices. It has a wide network for sales and distribution for the marketing of its food items. Mother Dairy sources the major part of its requirement of liquid milk & fruits & vegetables from dairy cooperatives & farmers.
   Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in Delhi, where it sells around 2.3 million liters of milk daily.Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and had a Market share of 62% in Delhi and NCR. Mother Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country.
9. NESTLE INDIA– Nestle India is a subsidiary of Nestle S.A. of Switzerland. With a market cap of Rs.35,000 crores it operates with seven factories and a large number of co-packers. Its food business can be broadly divided into four segments Milk products & nutrition, beverages, prepared dishes & cooking aids, chocolates & confectionery. It specialises in infant food, while the other products in this range are Nestle milk, milkmaid, ghee, dahi & dairy whitener. It also has a diversified product chain like prepared dishes & cooking aids – the major one being Maggi, others are sauces, pasta, beverages like coffee & iced and instant tea. Nestle is also known for its chocolate & confectionery range the major brands being Kitkat, polo & bar-one. The sale is not only limited to India but also abroad. The company marked a steady growth in 2010 with Rs. 1,000 crores as revenues & a net profit margin of 15%.
10. PEPSICO INDIA – is one of the largest US multinational investors in the country with an investment of over $1 billion. PepsiCo India provides direct and indirect employment to over 1,50,000 people across the country. The portfolio includes Quaker Oats, Tropicana juices, rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to introduce the use of healthier oils for its snacks – Lays Potato chips, Kurkure and Cheetos. The aerated drinks brand include 7up, Pepsi, Nimbooz, Mirinda, Mountain Dew, Slice & bottled water -Aquafina. Uncle Chips & Lehar snacks are also a part of the Pepsico company. PepsiCo India has not only grown to become the country’s largest food and beverage business but has also become a powerful and consistent driver of PepsiCo’s global growth. Over the last two years, India’s beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe.
11. COCA-COLA INDIA Pvt. Ltd. -In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd. It offers a wide portfolio in India, spanning sparkling drinks, juice and juice drinks, Packaged water, energy drinks, tea & coffee. It has about over 7,000 Indian distributors and more than 1.3 million retailers. The Company has brought a revolution in the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks. The popular brand names associated with company are Coca cola, Diet Coke, Thums up, Sprite, Fanta, Limca, Maaza, Minute Maid, Nestea, Schweppes, Georgia Gold & packaged water – Kinley. It took part in a campaign with NDTV to launch Healthy, Active and Happy schools – “Support My School”.
12. VENKYS INDIA LTD. – Today the diversified VH Group is a Rs. 5000 crore conglomerate and a large Asian poultry company. Venky’s India Ltd. formerly known as Western Hatcheries Limited was established in 1976, mainly to produce day-old layer and broiler chicks for the dense poultry markets of North India. The group has diversified into poultry, processed food, animal vaccines, pharma and healthcare products, pellet feeds, processed, and further processed chicken products, solvent oil extraction, and SPF Eggs. The company’s Specific Pathogen Free Egg unit is among four such units in the world and the only one of its kind in the developing world.
13. MARICO LTD. – Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods generated a turnover of about Rs. 26.6 billion during 2009-10. The company has a market capitalisation of Rs.8,000 crores. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic. The food segment mainly consists of edible oil & oats. Recently, it sold its sunflower oil brand Sweekar to Cargill India. The deal size was estimated somewhere between Rs.200 – 250 crores.