FICCI, along with Bain & Company in Mumbai, reported that the food processing industry, the fifth largest sector in India’s economy and packaging costs of food, shows potential for massive expansion, particularly in the export market.
The report, which was launched at the ‘Food World India 2012 Convention,’ pegged the packaged food industry at Rs1000bn, of which majority is accounted for by dairy and biscuits, according to financialexpress.com.
In India, costs of processing and packaging food can be 40% lower when compared to parts of Europe, thus making it an attractive venue for investment.
Many multinational players are bringing in new products to make the most of the growing demand for packaged goods.
According to analysts, growth rates for the packaged food sector will range from 9%-13% over the next 5-6 years.
The Indian government has set an investment target of $20bn in food-related infrastructure from the private sector in the coming years.