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Study on Financial summary of Britannia EssayThe nitty-gritty pabulum production in India is likely to double in the next ten dollar bill days and there is an opportunity for large enthronisations in solid food and food bear upon technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits Vegetables, Fisheries, Milk Milk Products, Meat Poultry, box/Convenience Foods, Alcoholic Beverages Soft Drinks and Grains are important sub- orbits of the food impact industry.A wellness food and health food supplement is an new(prenominal)(a) rapidly rising segment of this industry which is gaining immense popularity amongst the health conscious. India is one of the foundations study food producers but accounts for less than 1. 5 per centime of global food trade. This indicates considerable scope for both investors and exporters. Food exports in 1998 s tood at US $5. 8 billion whereas the world come in was US $438 billion. The Indian food industries sales turnover is Rs 140,000 crore (1 crore = 10 one cardinal million million) annually as at the vary of year 2000.The industry has the highest number of plants approved by the US Food and Drug Administration (FDA) extracurricular the USA. Indias food touch on sector covers fruit and vegetables marrow and poultry milk and milk products, alcoholic beverages, tilteries, plantation, iota processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods and so on We cover an consummate(a) database of an array of suppliers, manufacturers, exporters and importers widely dealing in sectors like the -Food Industry, Dairy processing, Indian beverage industry etc.We also cover sectors like dairy farm plants, canning, bottling plants, packaging industries, process machinery etc. The most promising s ub-sectors includes -Soft-drink bottling, confectionery manufacture, Fishing, aquaculture, Grain-milling and grain-based products, Meat and poultry processing, Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals, Food additives, flavors etc. India is one of the worlds major food producers but accounts for less than 1. 5 per cent of international food trade.This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US $5. 8 billion whereas the world bring was US $438 billion. The Indian food industrys sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The industry requires about Rs 29,000 crore in enthronization over the next basketball team years to 2005 to create necessary infrastructure, expand production facilities and state-of-the-art-technology to match the international quality and standards.The office of the artless Affairs of the USDA / unconnected Agr icultural Services in New Delhi says that one of Indias proudest accomplishments has been achieving a tenuous self-sufficiency in food production and that the country produces a wide variety of coarse products at prices that are at or below world values in most cases. The Indian palate is accustomed to traditional foods, mostly wheat and rice-based, rather than potato and corn-based western palate. In trade perspective, this is considered an important factor for abroad marketers.The USDA report says initially consumer-ready food products may have to be tailored to include Indian spices and traditional ingredients. In addition to traditional tastes, there are other social factors which affect consumption in India. Hindus account for approximately 80 per cent of Indias population, and turn hardly 25 or 30 per cent are strict vegetarians, beef slaughter is interdict in all but two states (Kerala and West Bengal) and consumption of other meats is limited. Incidentally, India is th e only country where the US-based MacDonalds sells its burgers without some(prenominal) beef content and even offers purely vegetarian burgers.Indias middle class segment will traction the key to success or failure of the polished food market in India. Of the countrys total population of one billion, the middle class segments account for about 350-370 million. Though a volume of families in this segment have non-working housewives or can afford employ domestic help and frankincense prepare foods of their taste in their own kitchens, the profile of the middle class is changing steadily and hired domestic help is becoming costlier. This is conducive to an expansion in demand for ready-to-eat Indian-style foods.Indias food processing sector covers fruit and vegetables meat and poultry milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc. According to latest official statistics, India exported processed fruits and vegetables worth Rs 5240 million in 1997-98. The horticulture production is around 102 million tones. Foreign investing since 1991, when economic slackening started, stood at Rs 8,800 crore.Products that have growing demand, especially in the Middle East countries include pickles, chutneys, fruit pulps, tinned fruits, and vegetables, concentrated pulps and juices, dehydrated vegetables and frozen fruits and vegetables. Another potential processed food product is meat and poultry products. India ranks first in world cattle population, 50 per cent of buffalo population and one-sixth of total goat population of the world. Buffalo meat is surplus in India. There is vast scope to specify up modern slaughter facilities and cold store chains in meat and poultry processing sector.Indias current aim of meat and meat-based exports is around Rs 8,000 million. In last six years forei gn investment in this segment stood at Rs 5,000 million which is more than 50 per cent of the total investment made in this sector. Compared with meat, poultry industry has registered significant growth. India ranks fifth in the world with annual nut production of 1. 61 million tones. Both poultry and egg processing units have come in a very big way in the country. India is exporting egg powder, frozen egg vitellus and albumin powder to Europe, Japan and other countries.Poultry exports are mostly to Maldives and Oman. Indian poultry meat products have good markets in Japan, Malaysia, Indonesia and Singapore. While meat products registered a growth of 10 per cent, eggs and broilers registered 16-20 per cent growth. There are about 15 pure line and grandparent franchise projects in India. There are 115 layer and 280 broiler hatcheries producing 1. 3 million layer parents and 280 million broiler parents. They in turn supply 95 million hybrid layer and 275 million broilers, day-old ch ick.Presently there are only tail fin egg powder plants in India which is considered insufficient in view of growing export demand for unalike kind of powder whole egg, yolk and albumen. The scope of foreign investment and state-of-the-art technology in this field is therefore tremendous. Milk and milk products is rated as one of the most promising sectors which deserves foreign investment in a big way. When the world milk production registered a negative growth of 2 per cent, India performed much better with 4 per cent growth.The total milk production is around 72 million tones and the demand for milk is estimated at around 80 million tones. By 2005, the value of Indian dairy produce is expected to be Rs 1,000,000 million. In last six years foreign investment in this sector stood at Rs 3600 million which is about one-fourth of total investment made in this sector. devise of casein and lactose, largely being imported presently, has good scope. Exports of milk products have been d ecimalized. Grains could emerge as a major export earner for India in coming years.Indias food grains production is now at around 225-230 million tones. These include rice, jawar, bajra, maize, wheat, gram and pulses. Indian basmati rice enjoys command in the international market. similarly growing Middle East market for basmati rice, many other countries are showing interest for this food grain. In 1998-99, export of basmati and non-basmati rice stood at Rs62000 million. There is a total rice milling cleverness of 186 million tons in the country. Among plantation, tea emerged as major foreign exchange earner.India is the largest producer and exporter of shameful tea. However, the most worrying factor for Indian tea industry is that from early next year with the slaying of tea imports into the country, India tea may face a stiff competition within the country as well, specially threat of Sri Lankas presence in the Indian market is looming large. The current years tea export prosp ect is not that very good in terms of forex earnings because international prices have fallen significantly this year. India exports between150-170 million kilograms of tea per annum.Of course, the scope of foreign investment in this sector is good and the multinational tea companies would either be trying for marketing joint ventures with the Indian producers or acquire stakes in Indian tea companies. There is a strong possibility of third country exports through such joint venture as quality wise still Indian teas are ruling the international market. An alcoholic beverage is another are where India witnessed substantial foreign investment. Foreign investment in this sector stood at Rs 7000 million which about 70 percent of the total investment made so far.The IMFL (Indian Made Foreign Liquor) primarily comprises wine, vodka, gin, whisky, rum and brandy. Draught beer is a comparatively recent introduction in the Indian market. The Indian beer market is estimated at Rs7000 million a year. One of the major advantages for any investor eyeing the Indian liquor market is that India offers enough raw materials like molasses, barely, maize, potatoes, grapes, yeast and hops for the industry. until now another catchy investment sector is fisheries. There is growing canned and processed fishes from India.The marine fish include prawns, shrimps, tuna, cuttlefish, squids, octopus, red snappers, ribbon fish, mackerel, lobsters, cat fish etc. In last six years there was substantial investment in fisheries to the tune of Rs 30,000 million of which foreign investments were of the order of Rs 7000 million. The potential could be gauged by the fact that against fish production potential in the Exclusive Economic Zone of 3. 9 million tones, actual catch is to the tune of 2. 87 million tones. Harvesting from inland sources is around 2. million tones. The biggest bottleneck in expanding the food processing sector, in terms of both investment and exports, is lack of becoming in frastructure. Without a strong and dependable cold chain vital sector like food processing industry which is based mostly on perishable products cannot survive and grow. Even at current level of production, farm produce valued at Rs 70,000 million is being wasted every year only because there is no adequate storage, transportation, cold chain facilities and other infrastructure supports.