Food Retail
Retailing in food and grocery Industry
Food accounts for about 48 per cent of FMCG sales in the country
By 2020, India is expected to become the fourth-largest food retail market in the world.
More and more corporate houses such as HLL, ITC and Reliance are now making inroads into food retail, with some even exploring the integrated approach via agri business and food processing.
The Indian food processing industry was valued at Euro 90 billion in 2005, a growth of 10% over the previous year.
Major player:
o ITC Limited
o Agro Tech Foods
o Cadbury India Ltd.
o PepsiCo India Holdings
o Nestle India Pvt. Ltd.
o Britannia Industries Ltd.
o Hindustan Lever Limited
o Milkfood
o MTR foods limited
o Godrej industries Limited
o Gits Food Products Pvt. Ltd.
o Dabur India Ltd.
The processed-food market is the main focus for foreign companies as this segment is underdeveloped and presents enormous potential for growth. The growth of modern, organized retailing in contrast to the kiosks and small shops from which Indians have been purchasing food traditionally will also increase the demand for value-added foods.
Different categories % contribution to
organised retailing
Clothing, textile & fashion accessories 36
Jewellery & watches 17
Food & grocery 14
Footwear 13
Durables 10
Books, music & gifts 3
Others 7
Despite bumper crops, distribution of food grains continues to be faulty almost 30% of the food produced in the country is wasted.
Indian food market is approximately Rs 2,50,000 crore ($69.4 billion), of which value-added food products comprise Rs 80,000 crore...
Please login to view the full essay...