Opportunities in food processing industry in northern India going north

Northen India, comprising diverse geographical regions from high mountains to flat gangetic plains, provides a lot of agricultural diversity and opportunity for the food processing industry.

From fruits like high quality apple to king of rice - Basmati and hub of dairy and meat industry, northern India comprising mainly of plains of Uttar Pradesh, hills of Uttarakhand, Himachal Pradesh and J&K along with fertile land of Punjab and Haryana is a hub of variety of foods.

Demand for critical tech
According to an expert, the region has ample opportunity in the food processing industry and therefore the demand is also rising for critical technologies related to equipment and machinery for the same. Also there is change in dynamics of the local industry functions. They are now on lines of multinational companies, want to add new lineup of products, particularly in the dairy industry.

The growth was around 25 per cent last year while according to the industry estimate, the market of food processing industry equipment and machinery was $1billion in 2010 and the growth has been 10-15% in recent times overall in India, wherein the imported machinery accounts for more than 90%.

There was a demand of 15-20 tonne per hour processing capacity in recent times amongst the big players which reflects the growth in the food processing sector for which the average requirement would cost around $8-10million.

However, the Indian version of equipment starts around Rs 20,000 onwards for the small and medium industries.

Main exporters
The main countries exporting equipments to India include the US having the largest share, followed by Germany, Italy, the UK and Holland providing mainly three types of machinery, processing machinery and equipment, packaging machinery and utility services.

Dr Kalyan Goswami, secretary-general, All India Food Processor’s Association (AIFPA) told that the major share of imported machinery is with processing and packaging part with around $1.2billion of cost.

“US provides all kinds of processing machinery solutions particularly in meat and poultry, diary, fruits and vegetable processing while Germany is providing packaging solutions and in confectionery segment,” he told.

Even, recently a US company Dover made foray into India. It is said to be providing largest refrigeration and cold chain solutions in the world.

Expansion
In northern India, the processing industry is witnessing expansion with governments incentivising the industry and providing support. While the hilly regions of J&K, Himachal and Uttarakhand excel in fruits juices, jams, dry fruits processing units, big states like Uttar Pradesh have zones for Basmati rice, and meat processing units in the western part, mango processing units in central UP while litchi processing units in eastern UP.

“Even Bihar has created litchi zones including districts like Muzaffarpur, Champaran, Betia, Madhepura, and Maharajganj. Bihar produces 75% of the litchis in India and a number of processing units has come up in recent times,” said Dr Goswami.

Also a new trend has come up in UP with cities like Kanpur and Lucknow emerging as exporters of ready meals to Gulf countries. “They export Kalmi Kebab to Gulf countries. Certainly for exporting purpose, they need right equipment and machinery to support the demand,” he said.

Even mango, which is hard to export in its raw form, has a huge export potential in the processed form, according to him.

Besides, the states like J&K, Himachal, and Uttarakhand are organic states. And the agro produce there is of much higher quality as compared to others. There are also opportunities in export of such processed food items while specialised processing equipment is needed for the same.

New areas
New areas of food processing create demands for newer types of machinery and equipment, for example, for processing of healthy juices and mango pulp. Northern India is one of the big producers of milk in India comprising UP, Haryana and Punjab but lacks technology for some key components of the dairy industry, which if provided would improve quality, according to an expert.

The meat processing industry could be a big change particularly in UP, which has started exporting exotic dishes like kebabs. Also emphasis of the government is on clean and hygienic meat production, this would provide impetus to the processing equipment industry to invest. However experts suggest that simplification of critical technology is required to involve, small and medium entrepreneurs.

According to an Italian Trade Commission report, some equipment for emulsion for nuggets and sausages, tandoori, kebab and curry products, value-added cuts from meat and cheaper packaging machines could change the fortunes of the meat industry in India.

Meanwhile, Indian manufacturers state that there are ample opportunities. Last year the growth in northern India was around 25% for RTS Juicers and IQF plants.

Mukesh Mohan Agrawal, VP, marketing and sales, Bajaj Process Pack Ltd, informed that a lot of enquiries were coming from Bihar and Rajasthan. “A lot of processing units in Bihar are coming up for litchi and tomato processing while in Rajasthan vegetables and fruits related plants are coming up,” he said.

He added that inquiries are coming from dairy industries, which want to add new flavours to their products. “The dairy industry is experimenting with their products a lot. On the lines of international brands, they now want to add flavours of fruits to their dairy products,” he said.