Food Processing

Index : 1,971 | 1Yr : +44.47% | 1Mo : -2.31%

Category : Sectoral Trackers

Min Investment : 5,599

Sharpe Volatility Trend

Due to the liberalization of organised retail, India is emerging as a sourcing hub of processed foods. It is estimated that one-third of the total population will be living in urban areas by 2020. The young population's consumption lifestyle is rapidly catching up with the urban population in large cities. There is an increase in awareness and desire for wellness and general health. Also, key trends such as the emergence of nuclear families and working couples has contributed the the increase in demand for processed food. The Government of India has encouraged the growth of this sector by permitting 100 percent FDI under the automatic route. The government has set up a 'Food Processing Fund' in NABARD to provide the food parks with affordable loans. This is furthered by RBI's classification of the sector under Priority sector lending and several other benefits in taxes.

There are a wide array of opportunities in this sector and the scope of growth is highly exponential. It is a high growth & high profit industry. Quality administration measures such as ISO, HACCP, GMP and others will offer several benefits. The improvement in supply chain management, availability of proper infrastructure and distribution channels will increase the efficiency of the food processing industry in general. Invest in companies which are likely to capture the future growth potential.

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