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FOOD
: A thriving industry wtill with a large untapped potential
- Indian
food industry is worth over USD 400 billion.
- Second
largest producer of fruits and vegetables - but only
2% processed.
- Largest
livestcok population but only 1% of meat production
is converted to value added products.
- Largest
milk producer with about 15% of milk production processed
in the organised sector.
- Over
8000 km of coastline makes it potentially, one of the
largest seafood producing and processing countries.
- Around
30% of the world's trade in spices originates in India.
- Large
plantations of tea, coffee, cocoa,and cashew.A rapidly
growing bakery, soft drinks, confectionery and beer
& alcoholic drinks market.
- Size
of the semi-processed and ready-to-eat packaged food
industry is over USD 1 billion and growing at over 20%
p.a.
- Lifting
of Quantitative Restrictions in accordance with the
WTO regulations from April 2001 means freer import and
export.
PHARMACEUTICAL
: Opportunities for growth in the post WTO regime
- Indian Pharmaceutical Industry
Value :
> USD 5 billion.
Average grwoth rate :
8-10 %.
Share of global sales :
Value 1%, Volume 8%.Global
ranking : 4th in volume,
13th in value.
Imports : USD
800 million.
Exports :
USD 2 billion.
Production costs :
Lowest in the world. 40-50%
compared to developed countreies.
- A
fragmented industry with over 20,000 registered units
looking at consoldation.
- Top
250 companies control 70% of the market and top ten
companies cover over 30% of the market.
- An
industry that possesses excellent chemistry and process
reengineering skills.
- Per
capita expenditure on health care in India is USD 93
where penetration of modern medicine is less than 30%
making it a huge untapped market.
- A
growing affluent class has opened up the market for
lifestyle drugs, virtually untapped so far.
- Indian
Pharmaceutical Policy 2002 limits price controls and
encourages foreign investment.
- Reduced
excise and import duties in recent budgets.
- Product
Patent regime comes into force from January 2005.
- Acquisitions,
Increased R&D and International tie-ups in post WTO
phase on the cards.
- Well
placed to seize the opportunity in generic drugs going
off-patent in Europe and in the USA between 2005 and
2009.
- Opening
up of health insurance sector and the expected growth
in per capita income are among the key growth drivers.
- Being
the lowest cost producer combined with FDA approved
plants, Indian companies can become a global outsourcing
hub for pharmaceutical products.
PACKAGING
: Food & Pharma Packaging Drive the Industry Growth.
- Indian
Packaging industry is USD 14 billion and growing at
more than 15% p.a.
- The
traditional rigid packaging users are migrating to flexible
packaging in a big way.
- Laminated
products including form-fill-seal pouches, laminated
tubes and tetrapacks are growing at around 30% p.a.
- There
are about 600-700 packaging machinery manufacturers,
95% of which are in the small and medium sector located
all over India.
- Germany
and Italy arer the lateset suppliers of packaging machinery
to India but focus is now shifting on Taiwan, Korea
and China. Indian packaging machinery imports are USD
125 million.
- Indian
packaging machinery exports are rapidly growing.
- India's
per capita packaging consumption is less than USD 15
against world wide average of nearly USD 100.
- The
large growing middle class, liberalisation and organised
retail sector are the catalysts to growth in packaging.
- Food
and Pharma packaging are the key driving segments.
AUTOMATION
: Triggering Growth
The
globalisation of the Indian economy has exposed the domestic
companies to the free market dynamics. The need to deploy
automation for achieving continuous productivity improvements
and supply chain efficienciesis becomig vital. Going forward,
the manufacturing companies have to invest in technologies
that help them become more agile, synchronize their production
and business decisions, and integrate with the global
manufacturing ecosystem. They also require collaborative
production management systems that link the plant floor
to business systems. Automation will now play a more important
role in achieving operational excellence than hitherto.
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