Indian food market to treble to $900-bn by 2020: Report


The domestic food market is likely to triple to USD 900 billion by 2020 from the current USD 300 billion, according to an industry report.
"Accounting for 16% of the world population and 12 percent of the world food production, India is one of the largest producers and consumers of food in the world. Indians spend around 35 percent of their total spend on food - USD 300 billion annually that will grow to about USD 900 billion by 2020," a Boston Consulting Group report 'India Food Processing: Mission 2020' said.
However, the report adds food processing levels are substantially lower than most emerging and developed economies with only six percent of the agricultural produce in the country being properly processed. Of the total food consumed today (USD 300 billion), 20% is processed and it is expected to increase to 35 percent (of USD 900 billion) by 2020.
"Food processing system needs to be remodelled. We have to figure a way to invest more in people and capacity among other things," BCG India principal Nimisha Jain said. "Food processing is important as it helps to extend shelf life and reduces wastage, thereby increasing food supply," Danone Director Eric Soubeiran said.
The domestic food processing industry is likely to invest Rs 14,000 crore in the next two years, according to Ficci. Most of the investment is likely to come from the existing companies.
"It is difficult to estimate what will be the investment cost but company wise, Danone is setting up manufacturing unit, Britannia is going towards north-east, we at Nestle are doubling all our capacities. So there is tremendous interest in investing," Nestle chairman and MD and Ficci food processing committee chairman Antonio Helio Waszyk said.
The report also found that last year there was a shift from pulses to poultry, and this year it is towards fruits and vegetables. Fruits and vegetables today account for 25 percent of the food consumed and by 2020 it is likely to be 40% of the food consumed.


My Comments:
And some of the pick in this sectors are:
1) Heritage Food
2) Vadilal Ind
3) ADF Foods Ltd
4)Flex Foods
5)Tasty Bites
etc.......I would like to write here that Flex Foods has doubled the bottomline this qr then last year and even the half year NP is equal to last whole year.I have recomended Flex Food way back here at my blog around 17 and in this market Flex Food is exhibiting excellent strength and is around 27.Refer my back post on Flex Food for more information......
I also like Heritage Food as well. They need to work on the margin and debt.With a 1000 cr sales , and 190 cr Mcap Heritage Food offer value according to me.......
Vadilal Ind has been my very very old call from MMB days and after that we saw RJ taking stake in it.They have coldstorages in various part of India which I feel have a good rental income which will add in the bottomline and along with their branded name of "Vadilal Icecream" Vadilal Ind too looks good to me.
ADF formally known as American Dryfruits Foods Ltd is a very wellknown brand for dryfruits etc and the stock is going cheap according to me.