Industry news
Food industry to grow 50% in 7 yrs; modern retail to be biggest gainer
Last updated: 21 November 2008
The Indian food industry, which forms bulk of the overall retail business in the country, is set to grow by 50 per cent from US$ 200 billion (around Rs 10 lakh crore) in 2006-07 to US$ 300 billion (around Rs 15 lakh crore) in the next seven years by 2015. Almost, three fourth (or, 758 per cent) of the food business is currently dominated by the unorganised sector.
This was revealed in a report on Indian food industry prepared by industry lobby FICCI in association with Technopak, a well known retail consultancy.The share of processed food, during this period, will substantially go up from $85 billion (43 per cent) in 2006-07 to $ 150 billion (50 per cent) in 2015.
What is more significant, however, is the fact that bulk of the $65 billion (Rs 3.25 lakh crore) increase in processed food segment will come from modern (organised) retail.
"The increasing contribution of food processing sector would largely come from the organised sector," says the report.
The key growth drivers for the food industry in India, among others, would include, higher disposable incomes, shifts in spending orientation, increased food retailing in organised sector, increased export opportunities, favourable regulatory environment, favourable government support, and increased investment inflows.
"The major challenges faced by the sector are low level of research and development, industry academia gap, skill and technology gaps and meeting global quality standards," says the report.
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