Evolution of food processing industry in India

02 Mar, 2020 by foodhospitality.in

The food processing industry is one of the largest industries in India. It ranks fifth in terms of production, consumption, and exports. Food processing has a key role to play in linking Indian farmers to consumers in both domestic and international markets. The Ministry of Food Processing Industries (MoFPI) is making huge efforts to encourage investments across the value chain. The industry engages approximately 1.85 million people in around 39,748 registered units with fixed capital of US$ 32.75 billion and aggregate output of around US$ 158.69 billion. Major industries constituting the food processing industry are grains, sugar, edible oils, beverages, and dairy products.
Focusing specifically on tomato processing, India is the second largest producer and consumer of tomatoes in the world with a production of 20 million tonnes. It is ready for large investments across food supply chains. Processed tomato products account for less than one per cent of India’s total consumption of tomatoes, presenting a huge opportunity to Kagome Foods India, while in the US the processed tomato consumption is in excess of 75 per cent.
The food processing sector has enormous potential to propel all round development, given its entire footprint across agriculture, industry and services. It can lead to gainful employment opportunities and put purchasing power in the hands of the people in both rural and urban regions.

USP of your products
l Seed to table value chain – Only company with a presence in the end-to-end value chain, from seed to table. Kagome’s wholly owned subsidiary (seed) company, supplies specialised, tested and approved seeds to farmers in Nashik, who grow them under the expert guidance of our agronomy teams. Our agronomists impart guidance to farmers to grow high yield, high-quality tomatoes at a low cost. These juicy tomatoes are harvested only when they are fully ripened, sorted and crushed in state-of-the-art plants customised for processing tomatoes.

  • Global quality at local prices – Our rigorous quality controls, ensure safety and reassurance, enabling us to offer global quality products at local prices.
  • Preservative free portfolio – Our entire product range is preservative free, with no artificial flavours or colours.
  • Japanese technology – In India, the norm is to process tomato products on the mango line. However, Kagome has made significant investments in factory infrastructure, to customise our processing line for tomato-based products, to make them better suited for use in restaurants.

Future roadmap

  • Increase farmer partners under our Contract Farming Program, from 200 (presently) to 1,000
  • Expand our distribution reach from our existing markets of Mumbai, Delhi NCR, Bengaluru and Pune, to cover the top 10 foodservice markets in India
  • Expand our product range, to focus on a wider range of tomatoes and onion-based products
  • Further investments in value chain and factory infrastructure.