Mega Food Parks - Huge opportunities in Food Processing

Huge opportunities in Food processing sectors

The changing demographics, lifestyle patterns, food consumption patterns has increased

the sales of packaged food, canned/ dried processed food, frozen processed food, meal

replacement products, condiments, beverages etc. The current estimated worth of packaged food

industry is 15 bn USD and is expected to touch 30 bn USD by 2015. The annual growth rate of this

sunrise sector is almost 20 percent.

The Indian food processing industry holds tremendous potential to grow, considering the

still nascent levels of processing at present. India, with an arable land of 184 mn hectares is, the

highest producer of milk in the world at 134.5 mn tonnes p.a., second largest producer of fruits (77

mn tones) & vegetables (150 mn tones), third largest producer of food grains (255 mn tones) and

fish and has the largest livestock population. Considering the wide-ranging and large raw material

base that the country offers, along with a consumer base of over 1.25 billion people, the food

industry holds tremendous opportunities for large investments. A study has also highlighted that

India incurs post-harvest fruits and vegetable losses worth over Rs two lakh crore each year

largely owing to the absence of food processing units, modern cold storage facilities and a

callous attitude towards tackling the grave issue of post-harvest losses.

Apart from this the economic slowdown and increasingly jobless nature of growth may force

some 12 mn people in India to join agriculture because of lack of opportunities elsewhere. A report

by ratings agency CRISIL says dwindling focus on labour-intensive manufacturing sectors has

slowed job creation in the economy, adding that the 'demographic dividend' that the country is

banking on to become an economic super power could turn into a 'demographic liability' if

adequate jobs are not created. To mix growth with job creation, the Crisil report has suggested

encouragement to labour-intensive manufacturing industries such as textiles & garments, leather &

footwear, gems & jewellery and food processing, where there is an emerging export opportunity

because of higher wages in China.

The Mega Food Park Scheme (MFPS)

Given the scenario of opportunities and potential ministry of food processing has come up

the Mega Food parks scheme (MFPS). The primary objective of the MFPS is to provide modern

infrastructure facilities for the food processing along the value chain from the farm to the market. It

will include creation of processing infrastructure near the farm, transportation, logistics and

centralized processing centers. The main feature of the Scheme is a cluster based approach. The

scheme will be demand-driven, and will facilitate food processing units to meet environmental and

safety standards.

The expected outcome is increased realization for farmers, creation of high quality

processing infrastructure, reduction in wastage, capacity building of producers and processors and

creation of an efficient supply chain along with significant direct and indirect employment

generation.

Salient Features of the Scheme

The Scheme aims to facilitate the establishment of a strong food processing industry

backed by an efficient supply chain, which would include collection centers, primary processing

centers and cold chain infrastructure. The food processing units, under the Scheme, would be

located at a Central Processing Centre (CPC) with need based common infrastructure required for

processing, packaging, environmental protection systems, quality control labs, trade facilitation

centers, etc.

The extent of land required for establishing the CPC is estimated to be between 50- 100

acres, though the actual requirement of land would depend upon the business plan of investor(s),

which may vary from region to region. CPC would be supported by Primary Processing Centers

(PPC) and Collection Centers (CCs) in identified locations based on a techno-feasibility study,

adequate to meet the raw material requirements of the CPC. The land required for setting up of

PPCs and CCs at various locations would be in addition to land required for setting up the CPC.

It is expected that on an average, each project may have around 30-35 food processing

units with a collective investment of around Rs 250 crores that would eventually lead to an annual

turnover of about Rs 450-500 crores and creation of direct and indirect employment of about

30,000 persons. However, the actual configuration of the project may vary depending upon the

business plan for each Mega Food Park. The aggregate investment in CPC, PPCs and CCs

should be proportionate and commensurate to the size of the total project keeping in view the

economies of scale.

The spirit of the guidelines of the Mega Food Parks Scheme is to facilitate setting up of only

food processing industries. Accordingly, only food processing industries that make food products fit

for human/animal consumption may be permitted to be set up in the Mega Food Parks. Packaging

facilities of food products as ancillary to the food processing industries may also be allotted land in

the Mega Food Parks.

The Scheme shall provide a capital grant at the rate of 50 percent of the eligible project

cost in general areas and at the rate of 75 percent of eligible project cost in difficult and hilly areas

i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified

areas of the States subject to a maximum of Rs.50 crores per project.

MEGA FOOD PARK MODEL: AN ILLUSTRATION

Cleaning, grading, sorting and

packing facilities, dry

warehouses, specialized storage

facilities, pre-cooling

chambers, ripening chambers, reefer

vans, mobile pre-coolers and

collection van etc.

Testing laboratory, cleaning, grading,

sorting and packing facilities, dry

warehouses, specialized storage

facilities, cold chain infrastructure

including reefer vans, packaging

unit, irradiation facilities, steam

sterilization units, steam generating

units, Food incubation cum

development centers

Role of MITCON

In order to ensure smooth implementation of projects at ground level, Ministry has drawn up a

panel of Project Management Consultants (PMC) with experience in preparation of DPRs for large

projects and project implementation. Ministry’s empanelled PMCs may be engaged by the SPVs

for preparation of DPRs and for assistance in implementation and the cost of which would be

considered as one of the eligible components of the project.

MITCON is one of the empanelled PMCs with Expertise in the project conceptualization,

Preparation of EOI document / Project Proposals, Technical Presentation, Detailed Project Reports

for getting in approval of various Commercial Horticulture Projects, Integrated Cold Chain, Mega

Food Parks, Food Testing Laboratories, Setting up/Modernization of Abattoirs and food processing

industries all over India. In the past MITCON has done EoIs/DPRs for more than ten Mega Food

Parks Projects. Projects in Maharashtra, Sikkim, Gujarat have got in principle approval and are on

the path of getting final approval. Mega Food Park Projects in Tamil Nadu, Uttar Pradesh, Tripura

has received the final approval and are in execution phase.

MITCON has well experienced team of Civil engineers, Architects, Agriculture experts, Food

technologist, Market Research, Finance and Management, Infrastructure Development, Power,

Energy & Carbon Credits, non conventional energy, environment clearance services, training etc.

for proper conceptualization and implementation of projects. It is associated with the Ministry of

Food Processing Industries, GOI, New Delhi for more than ten years for implementation of all

schemes. Apart from this MITCON is also empanelled with various leading banks/Government

Agencies/Ministries for appraisal of Project Proposals / Reports with Good financial strength and

experience of about three decades in consultancy and training.There is state of the art Network of

offices and manpower all over India to collect relevant data/information as required and

empanelled with other allied Central Government Agencies as follows:

MoFPI (Ministry of Food Processing Industries, GOI, New Delhi)

NIFTEM (National Institute of Food Technology Entrepreneurship and Management)

SFAC (Small Farmers Agri-Business Consortium)

TDB (Technology Development Board)

NMPPB (National Meat & Poultry Processing Board)

MITCON believes the key is relentless execution and give all we have. It would be glad to

associate with the industry’s quest for development and positive impact on the sector as whole.

We can take, execute and commence a successful technical association for this sunrise sector.

Our mission is to provide one stop solution for agri and food sectors and to play proactive role in

mentoring, developing sustainable agri and food businesses.

Vijaykumar Chole,

Asst. Vice President

MITCON Consultancy & Engineering Services Ltd.,

Kubera Chambers, Shivajinagar,

Pune - 411 005, Maharashtra (INDIA)

Mobile: +91-7774050683,

Email: vijay.chole@mitconindia.com

Tel.: +91-20-2553 3309 (D) 66289130,

Fax: +91-20-2553 3206

Website: www.mitconindia.com