Market survey of Fruits and Vegetables Processing Industry, Current Scenario and Future Prospects in the state of Gujarat

1. Sponsor by GUJARAT AGRO INDUSTRIES CORPORATION LIMITED Status Survey of Fruits and Vegetables Processing Industry

2. DECLARATION I, RonakThakkar, student of Center for Management Studies, Dharmsinh Desai University, Nadiad, hereby declarethat 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

4. 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

5. GAIC having strong network of 18 district level centers and 1200 plus agribusiness centers in the state to Empowering the Farmers About GAIC Ltd. GAIC Ltd. CMS DDU

7. France - 70 %

8. Malaysia- 80 %Level of Processing in India (Fruits & Vegetables) OrganizedUnorganizedTotal 1.3% 0.8% 2.2% (as per survey by MOFPI in 2006) Fruits and Vegetables Processing still at a nascent stage Government’s vision to raise it from 2.2% to 5% by 2015 GAIC Ltd. CMS DDU

9. 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

10. State wise No.s of Fruits and Vegetables Processing Units in India; (Source: LokSabhaUnstarred Question No. 848, Dated On 09.07.2009) GAIC Ltd. CMS DDU

11. Micro Segments of Fruits and Vegetable Processing Industry GAIC Ltd. CMS DDU At nascent stage Surveyed

13. Primary research : Survey

14. Research design: Descriptive

15. Sampling method : Conveyance

16. Area: Mangoes and Vegetable AEZ: south and central Gujarat

17. Questionnaire design: Close ended(Multiple choice & Dichotomous) and Open ended(free respond) GAIC Ltd. CMS DDU

18. GAIC Ltd. CMS DDU Analysis of survey data

19. No.s of Units Years Old Unit GAIC Ltd. CMS DDU

20. Type of Business Concern GAIC Ltd. CMS DDU

21. 15 No.s of Units 8 6 2 GAIC Ltd. CMS DDU

22. 1. Mango Pulp / Canned F&V GAIC Ltd. CMS DDU

23. GAIC Ltd. CMS DDU 2. Individual Quick Freezing(IQF) F&V

25. Foreign Investment/FDI GAIC Ltd. CMS DDU

26. Annual Sales/Turnover GAIC Ltd. CMS DDU Rs. in Lacs

27. Raw Material Procurement Process is, GAIC Ltd. CMS DDU

28. Workers/Manpower Availability GAIC Ltd. CMS DDU

30. Export Statics of the country GAIC Ltd. CMS DDU (Qty in Mt., Value in Rs. Lacs) (source: DGCIS report)

32. Expenditure on Research & Development, (Thanks to Mr. Umang Desai, Murohi Food Products, Valsadfor the Picture) GAIC Ltd. C MS DDU

33. Quality Standards following, 24% 16% 56% GAIC Ltd. CMS DDU Now towards GMP, GHP, GAP, ISO14000………

34. GAIC Ltd. CMS DDU Source: fssai.gov.in

35. Plan for Expansion in near future, GAIC Ltd. CMS DDU

36. Snapshot ADF 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 BimalThakkar 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

37. Key Challenges Fruit and vegetable Processing Industry Facing 40% 20% 12% GAIC Ltd. CMS DDU

38. GAIC Ltd. CMS DDU

39. 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

40. 60% of respondents feels skilled manpower availability as a key challenge Very Few Players and ofsmall size GAIC Ltd. CMS DDU

41. 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

42. 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

43. 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. KamleshbhaiChapaneri, Vadilal Industries Ltd. Shri. Ashokbhai Patel, Patidar Agro and Food Products Shri. VijaybhaiChawla, Brothers Foods Pvt. Ltd. Shri. YogendraJadav, Nilkanth Agro Industries Shri. KishanbhaiTekchandani, Swami ShantiPrakash Agro Shri. MukeshbhaiChawla, J. J. Food Industries Shri. SantoshbhaiVerma,Anmol Food Product Shri. SamirbhaiKoradia, Gujarat Food Industries Shri. Ashutoshbhai Patel, ADF Foods Ltd. Shri. Kiritbhai Patel, Anand Food And Dairy Products Shri. Surendrabhai Patel, Shreeji Vegetable Suppliers Shri. AbidbhaiDeraiya, Relish Agro Food (India) Pvt. Ltd. Shri. Jayantbhai Patel, Ekta Fresh Foods Pvt. Ltd. Shri. Dhimantbhai Shah, Pathik Foods Shri. VivekbhaiTambe, Saraf Foods Ltd. Shri. Chandreshbhai Shah, Madhav Agro Food Pvt. Ltd. Shri. Vasant Kumar Pillai, M/S.Modern Food Products Shri. Sandipbhai Shah, AumAgri Freeze Food Shri. Nareshbhai Shah, Harshad Mango Products Pvt. Ltd. Shri. HemantbhaiKansara, G.A. Foods (India) Pvt. Ltd. Shri. GhanshayambhaiLukhi, Tapi Food Products Shri. SanjoybhaiDatta, Vimal Agro Products Pvt. Ltd. Shri. SurajbhaiSavalia, Patson Foods (India) Pvt. Ltd Shri. H. D. Parekh, Desai Fruits And Vegetables Shri. Mukeshbhai Desai, Murohi Food Products GAIC Ltd. CMS DDU

44. ConclusionUnleashing the Era of F&V Processing Thank you for your kind attention Jay JayGarvi Gujarat

45. Reference Websites GAIC Ltd. CMS DDU

46. REQUEST FOR FEEDBACK Esteemed & 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 06ft340@adit.ac.in for further improvements in the interest of research Hoping an appropriate consideration Thanking you profoundly Best regards, RonakThakkar GAIC Ltd. CMS DDU