A Perfect Destination The Future for Food Processing In India :

52
Mega Food Park A Perfect Destination The Future for Food Processing In India

Transcript of A Perfect Destination The Future for Food Processing In India :

Page 1: A Perfect Destination  The Future for Food Processing In India :

Mega Food Park

A Perfect Destination

The Future for Food Processing In India

Page 2: A Perfect Destination  The Future for Food Processing In India :

India – The Growth Story

2

A Market we understand well

It has a great Future

Page 3: A Perfect Destination  The Future for Food Processing In India :

India – A steady growth Market in Food Processing

India - Home to the 1.26 Billion or 17.5% of World population. One of the largest middle class population of the world with growing income levels.

3

Page 4: A Perfect Destination  The Future for Food Processing In India :

Major Food Processing Segments in India

Food Segments of Significance fueling Scalability and Sustainability

4

Page 5: A Perfect Destination  The Future for Food Processing In India :

Destination India – The Strategic Advantage

A fast growing Domestic Market plus a Stable and sustainable export market.

5

Page 6: A Perfect Destination  The Future for Food Processing In India :

India - Critical Factors fueling industry growth

Benefits have started to emerge for sustainable long term growth

6

Page 7: A Perfect Destination  The Future for Food Processing In India :

7

Political Will and Support – Prime Minister Modi’s Invitation to “MAKE IN INDIA in Food and Agro Value Addition”

Page 8: A Perfect Destination  The Future for Food Processing In India :

Food Processing - Critical Success factors Globally

Favorable conditions for

Food Processing Unit for a Food

Brand

Location

• Proximity to Source of Raw Materials

• Proximity to Markets

Support Structure

• Proximity and Availability of Ancillary Units

• Easy availability of Labor

• Ample Logistic Support

Policy Framework

• Government support

• Liaison & Mobilization

• Industrial impact

Infrastructure

• Hygienic Storage

• Stable Power Supply

• Clean Water Supply

• Non Polluted Environment

8

Page 9: A Perfect Destination  The Future for Food Processing In India :

Food Processing Potential in India

Current Processing level in India

High

HighLow

Pro

cessin

g p

ote

nti

al Size of Bubble

Indicates Perishability

An Unstructured and Unorganized Market brings out a big opportunity !!

9

Page 10: A Perfect Destination  The Future for Food Processing In India :

It sure looks Interesting …..

a $ 260 Billion Food Processing

industry in India which is poised to grow at a rate of 15% and More…

10

What would it take to seize and amplifyour current business potential ?

Page 11: A Perfect Destination  The Future for Food Processing In India :

11

Though The Potential is Huge

As every industry has its challenges

We have ours!!

Page 12: A Perfect Destination  The Future for Food Processing In India :

12

Even Beyond

FSSAI!!!

Page 13: A Perfect Destination  The Future for Food Processing In India :

13

Challenges impact us at the grass root level ??

Instability in Farm Production

Challenges in Establishment units

Regulatory Approvals from the Government

Processable Raw Material Sourcing

Labor Challenges

Infrastructure Challenges

Logistic Challenges

Consumer Demand & Positivity

...and the biggest of them all: To Sustain Growth

Page 14: A Perfect Destination  The Future for Food Processing In India :

Unit Setup

Options

Acquire Green

Field Land

Acquire a unit in

Mega Food Park

Acquire a Industrial

Unit

Does a Constant Need to Grow lead us to Expand Capacity?

Yes! Multiple options - but what effort would each take to build capacity ??

14

How to Grow

Expand current

Infra

Set up new

Infrastructure

Growth Options Setting Up New Infra

If New Infra

Page 15: A Perfect Destination  The Future for Food Processing In India :

Food Processing Unit – Setup Effort estimation in India

Factors Green Field Land Industrial Unit Food Park Unit

Statutory Approvals Difficult + Time Taking

Some May Be Available Mostly ReadilyAvailable

Constructed Promises Difficult +Time Taking

Readily Available Readily Available

Power Supply Difficult +Time Taking

Readily Available Readily Available

Clean Water Supply Difficult +Time Taking

May be Readily Available

Readily Available

Effluent Treatment Plant & Approvals

Difficult +Time Taking

May be Readily Available

Readily Available

Road Infrastructure &Security

May Not Be Readily Available May be Readily Available

Readily Available

Clean & Non Polluted Environment

Available Not Available Readily Available

With a food Park , save on up to 18 months of effort , Manpower cost and setup cost & time from day 1.

SAVE TIME & COST; PLOUGH SAVINGS INTO BUILDING A BETTER CONSUMER CONNECT!!

15

Page 16: A Perfect Destination  The Future for Food Processing In India :

16

A

Mega Food Park

How it Works!!

Page 17: A Perfect Destination  The Future for Food Processing In India :

17

Has a cluster based approach. Establishes a complete Eco system for Food Processing Helps integrate the Supply Chain

MEGA FOOD PARK is an Exclusive IndustrialPark for Food processing industries whichbrings together Farmers ,Food processors andother stakeholders.

What is a Food Park – The Concept

Page 18: A Perfect Destination  The Future for Food Processing In India :

What is a Food Park – The Concept

18

Hub and Spoke Model, Cluster based Approach

Page 19: A Perfect Destination  The Future for Food Processing In India :

Mega Food Park is a perfect destination!!

19

Even our PM Agrees!!

Page 20: A Perfect Destination  The Future for Food Processing In India :

20

Shri Narendra Bhai inaugurated Mega Food Park just a week ago!!

It is part of the core vision for the Nations Growth

Page 21: A Perfect Destination  The Future for Food Processing In India :

21

As a model; a Food Park works…..

And there is one coming up Nearest to

You…

Page 22: A Perfect Destination  The Future for Food Processing In India :

22

At Mangrol, Near Surat, Gujarat

Page 23: A Perfect Destination  The Future for Food Processing In India :

23

GAIMFP Project is Approved & Supported by the Government

Ministry of Food Processing IndustriesGovernment of India

Page 24: A Perfect Destination  The Future for Food Processing In India :

GAIMFP in a Nutshell !! To provide Complete Infrastructure

Roads, ElectricityWater, SewageETP AND MUCH MORE

Facilities such Cold Storage Frozen StorageWarehousingCommon Processing Facilities

Backward Integration & Farmer Connect through PPCs & Collection Centres

24

“All this with an Optimal room for Customization ”

Page 25: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area with excellent connectivity

offers ready infrastructure to start

offers suitable facilities for Food Processing Industry not general industrial facilities

offers ancillary support system for processing & warehousing

Is located in area which has ample labor supply

offers logistical support

is managed by experienced players in market

25

Key Advantages GAIMFP –Through the Scanner

Page 26: A Perfect Destination  The Future for Food Processing In India :

GAIMFP is Located Strategically at Mangrol, Near Surat, Gujarat

Hazira Port

JNPT Port

GAIMFP

Ahmedabad

Mumbai

Surat

Kim & Kosamba Railway Stations

Location Distance Road Air Rail Sea

Mumbai 320 km Y Y Y Y

Ahmedabad 250 km Y Y Y

Surat (Hazira) 50 km Y Y Y Y

Vadodara 130 km Y Y Y

Kim, Kosamba

20 km Y Y

Kandla Y

Mundra Y

Vadodara

An Unmatched Infrastructure and Connectivity for a Global Footprint offered by none otherwith 40% of India’s import export cargo handled by Gujarat.

26

Page 27: A Perfect Destination  The Future for Food Processing In India :

GAIMFP is Located Strategically for sourcing raw material

Some Numbers from the Cluster

•around 66% of the total production of fruits in the state, fruits includes mango, banana, chiku, papaya and guava.

•21% of the total vegetables produced in the state, the process-able vegetable includes okra, tomato, cauliflower, beans, sweet corn.

•almost 37% of the pulses in the state, Tur and Udad being the important ones.

•about 20% of state’s milk

•94% of Sugarcane

27

Continuous Supply , Collaborative Benefits , Max ROI

Vegetables

Fruits

Dairy

Pulses

Poultry

Interestingly a numbers of farmers groups, NGOs and Co-Operatives have shown interest in working with MFP units for mutual advantage. MFP will deployed an Agri team for promoting contract farming and developing linkage between farmer and processors.

Page 28: A Perfect Destination  The Future for Food Processing In India :

GAIMFP is Located Strategically for sourcing raw material

Raw Material Availability - Units in Million MT

Component Fruits

(In MT) Vegetable

(In MT)Cereals (In MT)

Pulses (In MT)

Spices (In MT)

Milk (In MT)

Sugar-cane (In MT) Egg Nos.

Bharuch 1.143 0.111 0.086 0.072 0.839 0.147 0 8.7Narmanda 0.537 0.087 0.036 0.018 1.486 0.072 0.015 6.2

Anand 1.085 0.41 0.511 0.005 2.852 0.437 0.009 634Surat 0.639 0.346 0.108 0.024 1.533 0.354 0 54

Vadodara 0.818 0.519 0.49 0.102 4.356 0.389 0.074 15.5Valsad 0.296 0.154 0.154 0.013 0.318 0.17 0.005 32.5Navsari 0.376 0.286 0.091 0.016 1.8 0.204 0.006 49.7

Tapi 0.247 0.248 0.122 0.02 6.213 0.192 0.016 33.8Total of Cluster 5.141 2.161 1.597 0.268 19.396 1.965 0.125 834.4Rest of Gujarat 2.622 7.889 7.752 0.454 97.451 7.851 0.005 441.8Total of Gujarat

Cluster7.763 10.05 9.349 0.722 116.847 9.816 0.13

1276.2% Within Cluster 66% 22% 17% 37% 17% 20% 96% 65%

At peak estimated capacity Less than 5% of Total cluster production is sufficient to satisfy raw material requirements at the Food park. Hence your sourcing costs are optimized for maximum gains.

28

Page 29: A Perfect Destination  The Future for Food Processing In India :

GAIMFP is Located Strategically for sourcing raw material

Horticulture Crops Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mango

Banana

Papaya

Guava

Chiku

Okra

Tomato

Cowpea

Cauliflower

Beans

Peas

Sweet corn

Potato

Tur

Udad

Paddy

Lean PeakNo

Aval.

29

Cluster Sufficiency in Supply even in Off Peak or Lean Periods

Page 30: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area with Excellent Connectivity

offers ready infrastructure to start

has all statutory approvals in place

offers suitable facilities for Food Processing Industry not general industrial facilities

offers ancillary support system for processing & warehousing

Is located in area which has ample labor supply

30

Key Advantages GAIMFP –Through the Scanner

Page 31: A Perfect Destination  The Future for Food Processing In India :

Our Location has Favorable Agro-climatic conditions

31

Optimal Solar power utilization

Favorable climate

Excellent connectivity

Fertile Land

Abundant water Supply

Built in one of the finest Agrizone in India

Page 32: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area with Excellent Connectivity

offers ready infrastructure to start

offers suitable facilities for Food Processing Industry not general industrial facilities

offers ancillary support system for processing & warehousing

Is located in area which has ample labor supply

is managed by experienced players in market

32

Key Advantages GAIMFP –Through the Scanner

Page 33: A Perfect Destination  The Future for Food Processing In India :

GAIMFP to offer ready and relevant infrastructure

• Infrastructure Ready Industrial Plots and Ready Pre-Built Plug & Play Sheds for MSME Units - to set up about 30 food processing units.

• Basic enabling Infrastructure at MFP-– Wide Roads, Compound Wall, Street Lights, Fire Fighting & Safety, Security, – Weigh Bridge, Water Supply, Power Infrastructure including solar power, – Sewers & Central Effluent Treatment Plant (CETP),– Common Technical Infrastructure- Cold & Frozen Storage, Warehousing,

Laboratory available on Pay to Use basis to all units in MFP– Access to Backward Integration – 4 Primary Processing / Collection Centers

• Common facilities at Primary Processing / Collection Centers will include-– Sorting & Grading line, Material handling equipment and storage facilities

33

Page 34: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area

offers ready infrastructure to start

offers suitable facilities for Food Processing Industry not general industrial facilities

offers ancillary support system for processing & warehousing

Is located in area which has ample labor supply

is managed by experienced players in market

34

Key Advantages GAIMFP –Through the Scanner

Page 35: A Perfect Destination  The Future for Food Processing In India :

Facilities specific to Food Processing Industry

• Unlike other Industrial options, GAIMFP offer facilities suitable to Food Processing Industry

• Facilities Include –– Common Processing Facilities-

• IQF line, Pulping line, and State of the Art Testing laboratory

– Other common facilities-• Warehouses, Cold stores, Reefer vans and other transport

vehicles.

– Non Core Amenities-• Farmer facilitation centre, business centre with conference

room and Offices for Services like Bank, Courier, Insurance, Electricity, Communication & electronic surveillance , Workers’ amenities

– A network of collection / Primary Processing Centres

35

Page 36: A Perfect Destination  The Future for Food Processing In India :

Proposed Common facilities within Food Park

Sr. No. Component Facility / Capacity

1 Modified Atmosphere type -Multi Commodity Cold

storage

2000 tonnes

(4 x 250 tonnes and 2 x 500 tonnes)

2 General Purpose Cold Store 2000 tonnes ( 4 x 500 tonnes)

3 Sub-zero storage 1500 tonnes ( 3 x 500 tonnes)

4 Ware houses- Raw Material 5000 tonnes

5 Ware houses- Finished Goods 5000 tonnes

6 Food Testing Laboratory All type of physical, chemical and micro biological test

7 Multi Fruit and Vegetable IQF Line 2 tonnes per hour

8 Pulping Line ( Frozen) 1 tonnes per hour

9 Four Primary processing centers at Padra , Jagadia,

Bartad and Valsad

Sorting, grading facility for vegetables

10 Vehicles 4 Reefer Vans & 4 others vehicles (normal)

36

Page 37: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area

offers ready infrastructure to start

offers suitable facilities for Food Processing Industry not general industrial facilities

offers support system for processing & warehousing + ancillary industries

Is located in area which has ample labor supply

is managed by experienced players in market

37

Key Advantages GAIMFP –Through the Scanner

Page 38: A Perfect Destination  The Future for Food Processing In India :

GAIMFP offers support system for processing &

warehousing + ancillary industries

• GAIMFP offers ancillary support system for processing & warehousing facilities suitable to Food Processing Industry

• Facilities Include –– Pre-Cooling– Grading– Pulping– Sorting– Waxing– Packing– Temporary Storage

• Also, will encourage small & medium processors to set up units at GAIMFP

38

Enabling an Ecosystem

Page 39: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area

offers ready infrastructure to start

offers suitable facilities for Food Processing Industry not general industrial facilities

offers ancillary support system for processing & warehousing

Is located in area which has ample Manpower supply

is managed by experienced players in market

39

Key Advantages GAIMFP –Through the Scanner

Page 40: A Perfect Destination  The Future for Food Processing In India :

We are in a Zone with large Manpower supply

• The Location of GAIMFP ensures ample labour supply

• The location is classified under ‘Tribal Area’– Local labour in ample

• Gujarat state by itself has no labour issues in terms of availability of labour

40

Page 41: A Perfect Destination  The Future for Food Processing In India :

is Strategically Located

is built in Pollution Free Area

offers ready infrastructure to start

offers suitable facilities for Food Processing Industry not general industrial facilities

offers ancillary support system for processing & warehousing

Is located in area which has ample labor supply

is managed by experienced players in market

41

Key Advantages GAIMFP –Through the Scanner

Page 42: A Perfect Destination  The Future for Food Processing In India :

GAIMFP is managed by experienced players in

market

• Doshi Group - Highly diversified group having experience in

– the fields of Infrastructure development, dry warehousing, Power Transmission, Construction, Mobile Value added Services, Financial Services as members of the NSE, BSE & MCX and LPG Distribution

• Adani Wilmar Ltd. - JV between Adani Enterprises Ltd and Wilmar Investments (Mauritius) Ltd.

– In the business of crushing edible oil seeds, manufacturing and trading of refined edible oil, De-Oiled Cakes(DOC) & specialty fats (including Vanaspati) and processing and exporting castor oil and castor DOC.

• Jindal Agro Processing Pvt. Ltd.

– In the field of packaged Ready to Eat food and Hotel Management

• Mafat Siroya

– Farmer Member in the SPV, Strong Local Presence - Support for for providing raw material.

• Manu Srivastava

– Strategy consultant for McKinsey & Co. support the SPV in the areas of Strategic Planning, Finance & Marketing.

42

Page 43: A Perfect Destination  The Future for Food Processing In India :

• PROMOTERS-SPV MEMBERS – STRENGHTS:– Combined expertise in the Food Processing, backward and forward

integration of raw materials and finished goods and infrastructure development

– Can commit adequate and all necessary resources for timely implementation

– Good financial strength which is required Net Worth to carry out a project of such size

– Experiences in sourcing raw material comes handy in developing backward linkages

43

Page 44: A Perfect Destination  The Future for Food Processing In India :

THANK YOU

44

Page 45: A Perfect Destination  The Future for Food Processing In India :

GAIMFP – Why Select us?

Mega Food Park CPC

Farmer Groups

Self HelpGroups

Individual Farmers Field Collection Centers

And Primary Processing Centers – Pre-Cooling, Grading, Pulping, Sorting, Waxing,

Packing, Temporary Storage

Pulping, Aseptic Packing, CA Chamber, Cold Store, QC Lab,

Logistic Center, etc

Fresh Products

Domestic Retail

Value Added Products

ImportExportDomestic Sales

45

Benefit from a Cluster Hub and Spoke Model.

Page 46: A Perfect Destination  The Future for Food Processing In India :

GAIMFP - Locations of Proposed CPC & PPCS &

Catchment Area

GAIMFP

Botad

Valsad

Itwada/Jaghadia

Location District Distance

Padra Vadodara 150 km

Botad Navsari 65 km

Itwada/Jaghadia, Bharuch 60 km

Valsad Valsad 100 km

Padra

46

Page 47: A Perfect Destination  The Future for Food Processing In India :

GAIMFP - CPC Location - Photographs

47

Page 48: A Perfect Destination  The Future for Food Processing In India :

GAIMFP – CPC Site plan

48

Page 49: A Perfect Destination  The Future for Food Processing In India :

Promoter Details

49

Page 50: A Perfect Destination  The Future for Food Processing In India :

Profile: THE DOSHI GROUP (URJA GROUP)• Diversified group having proven track record in all facets of the businesses

• Vast experience (4 decades) in the fields of infrastructure development and storage of food grains in dry warehouses.

• Pioneers in Constructing Private warehouse for use by Food Corporation of India at Viramgam near Sanand in Gujarat.

• Rich experience in infrastructure development through execution of Turn-key projects in Power Transmission and Construction of Commercial & Residential Projects.

• The acquired Project Management skills will be a big support in timely execution of Mega Food Park Project of this size.

• One of the largest Mobile Value added Services provider companies servicing more than 50 Million Customers on behalf of most leading telecom companies such as BSNL, MTNL, Vodafone, Airtel, IDEA, TATA Docomo etc.

• Also present in Financial Services as members of the National Stock Exchange of India, Bombay Stock Exchange of India, Multi Commodity Exchange of India.

• Presence in Mumbai and Ahmedabad, Vadodara, Surat, and Bangalore.

50

Page 51: A Perfect Destination  The Future for Food Processing In India :

Profile: ADANI WILMAR LIMITED

• Adani Wilmar Limited (AWL) is a 50:50 JV between Adani Enterprises Ltd and Wilmar Investments (Mauritius) Ltd.

• AWL is engaged in the business of crushing edible oil seeds, manufacturing and trading of refined edible oil, De-Oiled Cakes(DOC) & specialty fats (including Vanaspati) and processing and exporting castor oil and castor DOC.

• The Company is in the middle of ongoing expansion of its existing facilities and has identified Gujarat as one of the preferred regions to set up carious facilities.

• Turnover of almost 1.6 Billion US Dollars ( more than Rs. 8000 Crores) and has fantastic forward integration capabilities of taking their products to the market.

• In light of the strategic advantages that this location offers they have also agreed to join hands as equity participants to this Mega Food Park and commit their vast experience in the Food Processing Industry in order to make this venture a great success.

51

Page 52: A Perfect Destination  The Future for Food Processing In India :

Profile: OTHER SPV MEMBERS

• Jindal Agro Processing Pvt Ltd – Engaged in the field of packaged Ready to Eat food with state of art

plants at Baroda. Product range include flatbread, snacks, curries and assortment of ready to eat, frozen foods as also IQF frozen vegetables and fruits.

– Also have experience in service and Hotel Management

• Mafatlal Siroya• Farmer Member in the SPV, Strong Local Presence shall bring Support for this

project through various Agricultural Mandalis for providing raw material.• Also engaged in real estate Business in the Surat City and nearby Districts

• Manu Srivastava• Strategy consultant for McKinsey & Co. B. Tech in Information &

Communication Technology with MBA in Finance & Entrepreneurship • Will support the SPV in the areas of Strategic Planning, Finance & Marketing.

52