Download - Summer Internship Project
Sponsor by
GUJARAT AGRO INDUSTRIES CORPORATION LIMITED
Status Survey of Fruits and Vegetables Processing
Industry
DECLARATIONI, Ronak Thakkar, student of Center for Management Studies, Dharmsinh Desai University, Nadiad, hereby declare that this project entitle “Market Survey of Fruits and Vegetable Processing Industry, Current Scenario and Future Prospects in the state of Gujarat” for Benefit of this sector in the State. which is undertaken at/sponsor by GUJARAT AGRO INDUSTRIES CORPORATION LIMITED, AHMEDABAD is a result of culmination of my sincere efforts.I declare that this submitted work is done by me and to the best of my knowledge; no such work has been submitted by any other person for the award of degree or any other purpose. I also declare that all the information collected from various secondary sources has been duly referenced.
- Ronak V. Thakkar
7th July, 2011
GAIC Ltd. CMS DDU
About GAIC Ltd.GAIC is the Nodal Agency for Implementation
of Agro Industrial Policy in the State
GAIC is also a Nodal Agency for MOFPI and APEDA for Implementation of the Project and Promoting the Development of Agro Industries in the State
GAIC having strong network of 18 district level centers and 1200 plus agribusiness centers in the state to Empowering the Farmers
GAIC Ltd. CMS DDU
Level of Processing
(Fruits & Vegetables)
USA - 80 %
France - 70 %
Malaysia- 80 %
Level of Processing in India (Fruits & Vegetables)
Organized Unorganized Total 1.3% 0.8% 2.2%
(as per survey by MOFPI in 2006)
Government’s vision to raise it from 2.2% to 5% by 2015 GAIC Ltd.
CMS DDU
Literature Review
Fruits and Vegetables Processing still at a nascent stage
Limitation of this study : Unorganized Sector is totally untouched Strength of this study : Organized sector is almost 80% of entire
State(population) is covered as a sample and many SSIs
GAIC Ltd. CMS DDU
State wise No.s of Fruits and Vegetables Processing Units in India;Sr. No. States/Uts No. Of Units1 Maharashtra 10482 Tamil Nadu 5443 Uttar Pradesh 4854 Kerala 4455 Karnataka 3286 West Bangal 308
7 Gujarat 3058 Andhra Pradesh 2969 Punjab 23010 Delhi 20911 Haryana 16612 Uttarakhand 12913 Himachal Pradesh 11614 Madhya Pradesh 11315 Rajasthan 10616 Jammu & Kashmir 7717 Assam 4618 Bihar 4319 Goa 4220 Jharkhand 2821 Orissa 2022 Manipur 1623 Chandigarh 1024 Meghalaya 1025 Pondicherry 926 Dadra & Nagar Haveli And Daman & Diu 727 Tripura 728 Chhatisgarh 629 Nagaland 630 Sikkim 431 Mizoram 332 Andaman & Nicobar Islands 233 Arunachal Pradesh 234 Lakshadweep 0
India 5166
(Source: Lok Sabha Unstarred Question No. 848, Dated On 09.07.2009)
GAIC Ltd. CMS DDU
Micro Segments of Fruits and Vegetable Processing Industry
GAIC Ltd. CMS DDU
5. Mango Pulp/ Canned F&V
6. Individual Quick Freezing(IQF) F&V/Primary Processing
7. Freeze Dried F&V
8. Pickles/Chutneys/Pastes/Jam Jelly/ketchup/ Tooty Fruity
1. Onion Dehydration – 80% of the
country
2. Potato Chips/French Fries/Potato Flakes/Maize
Starch – McCain, Balaji
3. Fruit Juice/
Squash
4. Gamma Irradiation -
UML
Su
rveye
d
At nascent stage
Research MethodsSecondary research : Data collected from
GAIC, and website of DHG, NHB, MOFPI, APEDA, Loksabha etc
Primary research : Survey Research design : Descriptive Sampling method : Conveyance
Area: Mangoes and Vegetable AEZ: south and central Gujarat
Questionnaire design: Close ended(Multiple choice & Dichotomous) and Open ended(free respond)
GAIC Ltd. CMS DDU
GAIC Ltd. CMS DDU
ANALYSIS OF
SURVEY DATA
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
0 10 20 30 40 50 60
Age of Units No.s of Units
Years Old UnitGAIC Ltd.
CMS DDU
Type of Business Concern
GAIC Ltd. CMS DDU
Proprietorship8%
Partnership 36%
Corporation (Pvt. Ltd./Ltd. Com-
pany)56%
No.s of Units Mango Pulp/Canned
F&VIQF F&V/ Primary
ProcessingFreeze Dried Pickles/Chutneys/
Pastes/Fruit Jams/Ketchup/
Jelly/Tutty Fruity
0
2
4
6
8
10
12
14
16
8
2
6
15
GAIC Ltd. CMS DDU
1. Mango Pulp / Canned F&VProduction Capacity (f.g.) No.s of Companies
<2MT/hr 22MT/hr 23MT/hr 14MT/hr 15MT/hr 16MT/hr 1
GAIC Ltd. CMS DDU
GAIC Ltd. CMS DDU
2. Individual Quick Freezing(IQF) F&V Production Capacity
(finished goods) No.s of Companies1000-2000MT/Ann. 3
>3000MT/ann. 2
3. Freeze Dried F&V
Production Capacity (input) No.s of Companies100-500MT/ann 1
1000-2000MT/ann 1
GAIC Ltd. CMS DDU
Long shelf life at ambient temperature
GAIC Ltd. CMS DDU
4. Pickles/Chutneys/Pastes/Jam Jelly/ketchup/ Tooty Fruity
Production Capacity (f.g.) No.s of Companies
<100 MT/ann. 2100-499MT/ann. 4500-999MT/ann. 4
1000-1999MT/ann. 32000-2999MT/ann. 2
Foreign Investment/FDI
No. of units having 4Percentage 16%
GAIC Ltd. CMS DDU
< 100 20%
100-199 28%
200-29916%
300-399 8%
400-499 8%
> 500 20%
Amount Invested in Project (Rs. in Lacs)
Annual Sales/Turnover
GAIC Ltd. CMS DDU
< 200
200-399
400-599
600-799
800-1000
> 1000
7 (28%)
5 (20%)
5 (20%)
3 (12%)
1 (4%)
4 (16%)
Rs.in
Lacs
Raw Material Procurement Process is,District Respondent
Very Easy Easy Difficult Very Difficult
Gandhinagar 1 √ 2 √
Ahmedabad 1 √ 2 √ 3 √ 4 √ 5 √
Kheda 1 √ Anand 1 √
2 √ 3 √ 4 √ 5 √
Vadodara 1 √ 2 √ 3 √ 4 √
Bharuch 1 √ Surat 1 √
2 √ 3 √
Navsari 1 √ 2 √
Valsad 1 √ 2 √
GAIC Ltd. CMS DDU
Workers/Manpower AvailabilityDistrict Respondent Very Easy Easy Difficult Very Difficult
Gandhinagar 1 √ 2 √
Ahmedabad 1 √ 2 √ 3 √ 4 √ 5 √
Kheda 1 √ Anand 1 √
2 √ 3 √ 4 √ 5 √
Vadodara 1 √ 2 √ 3 √ 4 √
Bharuch 1 √ Surat 1 √
2 √ 3 √
Navsari 1 √ 2 √
Valsad 1 √ 2 √
GAIC Ltd. CMS DDU
Workers Employment
GAIC Ltd. CMS DDU
No. of workers No. of respondents Percentage1 - 20 7 28%21 - 30 4 16%31 - 40 3 12%41 - 50 4 16%
> 50 7 28%Total 25 100%
but both, Increases in season
One Shift (8hrs.) 16 RespondentsOne Shift (12hrs.) 7 RespondentsThree Shifts(24hrs.) 2 Respondents
Working Hours
Way of utilize E-Commerce
No.s of Respondents Percentage
Website 19 76%Online Sales 9 36%Advertisement 4 16%
Positive respondents 9Percentage 36%
100% Export Oriented Units
GAIC Ltd. CMS DDU
Facebook, Twitter……..
Export Statics of the country
GAIC Ltd. CMS DDU
(source: DGCIS report)
(Qty in Mt., Value in Rs. Lacs)
Communication Channel using for advertisement are
No.s of Respondents Percentage
Newspaper/Magazine 7 28%Pamphlet 3 12%
Television/Radio 3 12%Internet 5 20%
Never40
40%
Rarely 12%Frequently
4%
In Festival 32%
In Off Season12%
Promotional Offers
GAIC Ltd. CMS DDU
No one is spending even 1% of sales turnover on Advertisements
No. of companies Participating 13Percentage 52%
Name & PlaceNo. of units
ParticipatingPercentage out
of totalPercentage out of
participantsKhadya
Khurak,Ahmedabad 4 16% 30%AAHAR,Delhi 4 16% 30%
Foodex,Mumbai 2 8% 15%Food Pro,Chennai 2 8% 15%
Also in, Rotary club, palanpur Anuga, SIACOulf food, DubaiDIC-VCCI-VadodaraKrishi melaKVICExibitorAnd so on in Gujarat, India and Foreign.
Participating in Exhibition/Trade Show,
Various exhibitions like,
GAIC Ltd. CMS DDU
Expenditure on Research & Development,
(Thanks to Mr. Umang Desai, Murohi Food Products, Valsad for the Picture)
GAIC Ltd. C MS DDU
Percentage Expenditure
No. of respondents Percentage
<2% 19 76%
2-4% 4 16%
<6% 1 4%
> 6% 1 4%
Total 25 100%
Technology used
No. of respondents Percentage
Indian 20 80%
Imported
Both 5 20%
Total 25 100%
Quality Standards following,
HACCP(ISO22000)
GMP
BRC
0 2 4 6 8 10 12 14 16
24%
16%
56%
GAIC Ltd. CMS DDU
Now towards GMP, GHP, GAP, ISO14000………
GAIC Ltd. CMS DDU
Sales Increases (as trust increases)
72%
Can’t say anything now12%
No Impact16%
impacts feel on organized sector after implementation of
Source: fssai.gov.in
Plan for Expansion in near future,
Yes80%
No20%
GAIC Ltd. CMS DDU
SnapshotADF Foods eyes revenue of Rs 500 crore in five years • Mumbai, June 10 (PTI) Export-oriented FMCG firm ADF Foods is eyeing Rs 500 crore revenue in the next five years and
expects 40 per cent of the sales to come from the Indian market, a top company official said.
• "Exports contribute to around 95 per cent of our revenues. But with India emerging as a leading food producer, we want to focus on the domestic market. We are eyeing 40 per cent of revenues coming from the Indian market and the rest 60 per cent from the international market in the next five years," ADF Foods Managing Director Bimal Thakkar told PTI on the sidelines of a Consumer Conference organised by Centrum Capital.
• The Mumbai-based food processing company recently re-entered the domestic market with a range of ready-to-eat, ready-to-cook foods and pickles under the brand name Soul.
• "We will introduce more products under the brand in the next few years to cater to the Indian cuisine. Apart from this, we also want to introduce international cuisine in ready-to-eat formats under the Soul brand," he said.
• The company has earmarked a capex of around Rs 45 crore over the next three years for expanding its presence in India.
• "We will be spending around Rs 25 crore on Marketing and Brand Building and increasing our distribution network. We want to be among the top three leaders in 3-4 years. We are also planning to set up one manufacturing facility in the country and eyeing a revenue of Rs 500 crore in the next five years," Thakkar said.
• The BSE-listed firm already has two factories, one each in Maharashtra and Gujarat, manufacturing products like pickles, pastes, chutneys, ready-to-eat curries, frozen parathas, frozen snacks and frozen vegetables, among others.
• ADF Foods is also developing a contract-farming model, he said, adding, "We have started it in Gujarat for producing mangoes and bhendi (lady''s finger). We see a great demand for such kind of produce mostly in the international market. Since the concept is also becoming popular in India, we plan to develop it further here." Presently, the company has a presence in major countries of North America, Europe, Australia, the Middle East, Africa and Asia and has a strong network of over 175 distributors.
• "We will be adding new products and entering new geographies as a part of our international expansion plans. We are also on the lookout for more acquisitions in key markets such as the USA and Australia," Thakkar said.
• The company recently acquired Elena''s Food Specialties, a US-based company making organic Mexican foods and distributing them across the mainstream market in the USA.
(Source: The Economic Times of dated 10th June 2011)GAIC Ltd.
CMS DDU
0
2
4
6
8
10
12
14
16
60%
20%
40%
12%
Key Challenges Fruit and vegetable Processing Industry Facing
GAIC Ltd. CMS DDU
SWOT Analysis
GAIC Ltd. CMS DDU
• Friendly Gov. Policy (Licensing, Subsidies…..)
• Socio–economic factor has created Huge Domestic Market
• Raw Material (Kesar mangoes- best in the world)
Surplus Productions
GAIC Ltd. CMS DDU
Strength
Weakness
• 60% of respondents feels
skilled manpower availability as a key challenge
• Very Few Players and of small size
GAIC Ltd. CMS DDU
Opportunity• 80% of respondents
having expansion plan in near future they needs huge revenue/funding in upcoming years. FDI is one of the good option
• To acquire domestic market industry has to put sufficient efforts in R&D and huge investment in brand building and marketing activities
• Quality standards like GMP……• Easy to Enter
GAIC Ltd.
CMS DDU
Threat
• Decreasing Employment- Lack of workers
• MNC’s (Capital Foods, Himalaya International…….and more will coming soon)
- Large size plants - Imported automated Technology
GAIC Ltd. CMS DDU
Shri. Sudhirbhai Dave, AGM(M&P), GAIC Ltd.
Shri. Subodhbhai Shah, Manager(Marketing), GAIC Ltd.
Shri. Vijaybhai Shah , Petals / AIFPA
Dr. R. K. Jain, ADIT / AFST(I)
Dr. N. K. Patel, CMS DDU
P r o f . (Ms . ) Ma n s i b e n R a t h o d, CMS DDU
Shri. Kamleshbhai Chapaneri, Vadilal Industries Ltd.
Shri. Ashokbhai Patel, Patidar Agro and Food Products
Shri. Vijaybhai Chawla, Brothers Foods Pvt. Ltd.
Shri. Yogendra Jadav, Nilkanth Agro Industries
Shri. Kishanbhai Tekchandani, Swami Shanti Prakash Agro
Shri. Mukeshbhai Chawla, J. J. Food Industries
Shri. Santoshbhai Verma, Anmol Food Product
Shri. Samirbhai Koradia, Gujarat Food Industries
Shri. Ashutoshbhai Patel, ADF Foods Ltd.
Shri. Kiritbhai Patel, Anand Food And Dairy Products
Shri. Surendrabhai Patel, Shreeji Vegetable Suppliers
Shri. Abidbhai Deraiya, Relish Agro Food (India) Pvt. Ltd.
Shri. Jayantbhai Patel, Ekta Fresh Foods Pvt. Ltd.
Shri. Dhimantbhai Shah, Pathik Foods
Shri. Vivekbhai Tambe, Saraf Foods Ltd.
Shri. Chandreshbhai Shah, Madhav Agro Food Pvt. Ltd.
Shri. Vasant Kumar Pillai, M/S.Modern Food Products
Shri. Sandipbhai Shah, Aum Agri Freeze Food
Shri. Nareshbhai Shah, Harshad Mango Products Pvt. Ltd.
Shri. Hemantbhai Kansara, G.A. Foods (India) Pvt. Ltd.
Shri. Ghanshayambhai Lukhi, Tapi Food Products
Shri. Sanjoybhai Datta, Vimal Agro Products Pvt. Ltd.
Shri. Surajbhai Savalia, Patson Foods (India) Pvt. Ltd
Shri. H. D. Parekh, Desai Fruits And Vegetables
Shri. Mukeshbhai Desai, Murohi Food Products
GAIC Ltd. CMS DDU
ConclusionUnleashing the Era of F&V
Processing
Thank you for your kind attention
Jay Jay Garvi Gujarat
Reference Websitesvadilalgroup.com naturealfood.com picklesfood.com adf-foods.com anandfood.com relishagrofood.com amarcoldstorage.com saraffoods.com aumfresh.com hampaindia.com tapifood.com vimalagro.com patsonfoods.com desaifv.com murohifood.com
gujagro.org agri.gujarat.gov.in agricoop.nic.in gujaratindia.com ic.gujarat.gov.in gidc.gov.in mofpi.nic.in apeda.com agriexchange.apeda.gov.in nhb.gov.in parliamentofindia.nic.in fssai.gov.in articles.economictimes.in diatimes.com Wikipedia.org
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REQUEST FOR FEEDBACKEsteemed & Most Respected Reader,
At the very outset,I would like to take this opportunity to request to your good self to supply your critical comments & suggestions about the report prepared, on my e-mail [email protected] for further improvements in the interest of research Hoping an appropriate consideration
Thanking you profoundly
Best regards,Ronak Thakkar
GAIC Ltd. CMS DDU