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How to Start Food Processing Industry in India. Food Manufacturing Unit. Processed Food and Agriculture Based Projects

Thursday, November 2, 2017

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Food Processing refers to various techniques and operations by which raw foodstuffs are transformed into food that are suitable for consumption, cooking, or storage. It consists of processes like the basic preparation of foods, the alteration of a food product into another form (as in making preserves from fruit), and preservation and packaging techniques.

India is the world’s second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India. It is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry -large disposable incomes – the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Increasing incomes are always accompanied by a change in the food basket.

The main reason to invest in Food Processing Industry in India is its quick growth. In addition to this reason, there are other reasons such as vast source of raw material, shift from conventional farming of food grains to horticulture, India’s huge population out of which major part of urban middle class are significantly changing the food habits, Low production cost, change in consumption patterns, introduction of food parks and the attractive fiscal incentives.

 

Market Outlook

 

India is the 2nd largest producer of food in the world, and the food processing sector in the country is expected to double in the next decade. The ever-growing consumer demands have opened up huge investment opportunities for foreign and private entities in the food processing and equipment industry.

India ranks 5th in terms of producing, growing, consuming and exporting. According to Indian Council Agricultural Research, this sector is forecasted to reach $194 billion at the end of 2015. Food processing in Indian economic context is considered as a sunrise industry. It acts as a crucial link between Agriculture and Industry.

The current size of Indian food Industry is around $40 billion and it is expected to grow by 27% – 30% and it will take double fold growth in next 3 years by considering today’s increasing pattern of demand.

During FY11–16, India's exports of processed food and related products grew at a CAGR of 11.74 per cent, reaching US$ 16.2 billion.

Main export destinations for food products have been the Middle East and Southeast Asia. In FY17* India’s exports stood at US$ 1.3 billion.

The food processing industry is one of the largest industries in India and ranks fifth in terms of production, consumption and exports.

In FY16*, food processing industry constituted 14 per cent to India’s GDP through manufacturing.

The Indian food processing industry is primarily export orient. India's geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such example indicating India's location advantage is the value of trade in agriculture and processed food between India and Gulf region.

India accounts for only about 1.5% of the total international food trade, despite its rich heritage in agriculture and agricultural products. This signals tremendous potential for exporters and investors. The share is expected to grow to 3% by 2015.

 

Few Suggested Projects for Startups:

 

POTATO POWDER, GRANULES & FLAKES

Potato is one of the important tuber vegetables, which is consumed throughout the year. Indian vegetable basket is incomplete without mentioning the king of vegetables-potato-a sustaining force and a culinary delight…..Read more

COCONUT PROCESSING UNIT

Coconut is one of the important fruit having large uses starting from bakery, confectionery, pharmaceutical industries to beverage industry and many more industries. Coconut oil is extensively used for edible and industrial purposes…..Read more

POTATO POWDER

The protection of food stuffs from spoilage by moulds and bacteria is a major concern of the food technologist. Potatoes can be consumed in varied forms. In fact, it is a vegetable that can easily be combined with any other food item including other vegetables, cereals, pulses, meat and poultry……Read more

CAKE GEL (CAKE IMPROVER)

It is one of bakery products largely used by the cake manufacturer. Basic raw materials are vegetable oil, G.M.S., Xanthenes gum, Satiric Acid etc. It is stable (at room temperature) gel like product. It required a mixing machine, heating equipment, packing machine for manufacturing the product…..Read more

BANANA POWDER

Banana powder is prepared from pulp of fruits after mashing and drying in a drum or spray driers. Then dried product is pulverized and passed through a 100-mesh sieve. It is a free flowing powder which is stable minimum for one year after packaging……Read more

TOMATO PASTE (TOMATO CONCENTRATE)

In view of the important of tomato either fresh or processed in the daily diet due to the high nutritive value, there are good potentials to develop this industry in the country in the small scale sector. This product contains total solids not less than 25%, but it can further be concentrated upto 33% solids…..Read more

RICE MILL (PARBOILED RICE)

Parboiled rice, popularly known as “ushna” rice in boiled form. India contributes about one-third of the world acreage under rice. Rice is available in over 5000 varieties, of which Izong rice of Assam occupies an important position on account of its superfine grains, pleasant, fine cooking quality, sweet taste, soft texture…….Read more

MAYONNAISE

There are few unorganized and private companies engaged in the manufacturing of Mayonnaise. It may be called the product is better substitute product. For the product manufacturing basic raw materials required vegetable oil, vegetable protein, milk protein, egg protein or fat emulsifier salt and water…..Read more

TURMERIC AND GINGER OIL

Ginger, one of the most important and oldest of spices used in every kinds of food preparation. The rhizomes known in the trade as hand or races reach the spice trade either, with the outer cortical layers intact (Coated unscraped ginger) or with the outer coating partially or completely removed…..Read more

CATTLE & POULTRY FEED

In India the animal feed industry is of recent origin, the first animal food plant having been established in 1960. There are today as many as 14 plants in the organized sector, besides many small feed compounders, which operate in large cities. The 14 organized units have modern or semi modern equipment for manufacturing compound feeds…..Read more

BANANA WAFERS

Banana can be preserved for 3 months or more by reducing the moisture in it by drying or frying. In India, food is preserved by sun-drying, mostly fruits, like figs, amla, mango, banana and coconut. It is mainly used in hotels, restaurants, bars, homes etc……Read more

SWEET & SCENTED SUPARI IN POUCHES

The betel nut (Supari) tree, which is known as "ARECA" in South India. It is planted in Bengal, Mysore, Sri Lanka etc. Its yield considered being very good in Sri Lanka. The betel (Piper betle) is the leaf of a vine belonging to the Piperaceae family, which includes pepper and kava……Read more

 

 

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