Food Park

Indian Food Processing Sector

Food processing involves any type of value addition to agricultural or horticultural produce and the products that follow. The grading, processing and packaging of foods all fall under this umbrella. The Food Processing Industry sector in India is a global contender in terms of production, consumption, exports and growth prospects.

Food Processing Sector in India has gained prominence in the recent years and makes it a very attractive sector for investments.

India is the world’s second largest producer of food after China and has the potential of being the biggest, backed by its food and agricultural sector. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing and packaging industry.

The Indian food processing industry accounts for 32 percent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 percent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 percent of India’s exports and six percent of total industrial investment.

India is not just a big-time producer and consumer of food, but also a vast and growing consumer base with strong production, the food processing, and packaging sector presents a large and exciting business opportunity for both domestic and international players. Easy availability of raw materials, changing lifestyle, favorable demographics and fiscal policies offer vast opportunities to food processing companies.

But Despite its strong agricultural production base, a significant amount of food produce gets wasted in India due to inadequate infrastructures such as packaging facilities, storage, transportation, cold chain, and low levels of processing. According to the Ministry of Food Processing Industry (MoFPI), postharvest losses account for US$1.5 billion (Rs 92,000 crores) annually.

The market has poised for rapid growth in the coming years. By 2020, the Food processing industry has the potential of attracting $ 33 bn of investment. The Processed food market is expected to grow to $ 543 bn by 2020 from $ 322 bn in 2016, at a CAGR of 14.6%, whereas the Indian Dairy industry is expected to double to $ 140 bn. By 2030, Indian annual household consumption to treble, making India 5th largest consumer.

Food processing industry in India has two major sub-segments namely food and grocery retail (92%) and the foodservice market (8%). Major food categories such as dry food grocery, dairy products, fresh produce, perishables, spices have a share of 34.7%, 16%, 15.6%, 8%, and 6% respectively in the Food processing industry.

Trade And Investment

Macro-Economic Indicators

  • The Indian Food Processing Industry valued at €170 Billion is growing at 11% CAGR.
  • The average Indian consumer spends almost 31% of their earnings on processed foods
  • The Indian processed food industry accounts for 32% of the country’s total food market, 14% of manufacturing GDP, 13% of India’s exports and 6% of total industrial investment.

FDI Policies:

100% FDI is permitted under the automatic route in food processing industries.

100% FDI is allowed through government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

HS Codes

HS Code Description
8417 Industrial Or Laboratory Furnaces And Ovens, Including Incinerators, Non-Electric
8419 Machinery, Plant Or Laboratory Equipment, Whether Or Not Electrically Heated (Excluding Furnaces, Ovens And Other Equipment Of Heading 8514), For The Treatment Of Materials By A Process Involving A Change Of Temperature Such As Heating, Cooking, Roasting, Distilling, Rectifying, Sterilising, Pasteurising, Steaming, Drying, Evaporating, Vaporising, Condensing Or Cooling, Other Than Machinery Or Plant Of A Kind Used For Domestic Purposes; Instantaneous Or Storage Water Heaters, Non-Electric
8433 Harvesting Or Threshing Machinery, Including Straw Or Fodder Balers; Grass Or Hay Mowers; Machines For Cleaning, Sorting Or Grading Eggs, Fruit Or Other Agricultural Produce, Other Than Machinery Of Heading 8437
8437 Machines For Cleaning, Sorting Or Grading Seed, Grain Or Dried Leguminous Vegetables; Machinery Used In The Milling Industry Or For The Working Of Cereals Or Dried Leguminous Vegetables, Other Than Farm-Type Machinery
8438 Machinery, Not Specified Or Included Elsewhere In This Chapter, For The Industrial Preparation Or Manufacture Of Food Or Drink, Other Than Machinery For The Extraction Or Preparation Of Animal Or Fixed Vegetable Fats Or Oils

Import Duty Structure

HS Code 8433, 8419, 8417, 8437, 8438
Product Description Food Processing Machinery
Basic Duty 7.5% - 10%
Social Welfare Surcharge 10%
IGST Levy (Integrated Goods & Services Tax) 5% - 18%
Applicable Import Duties (%) 13.66 – 30.98

Key Players

Major Investors

International Company or Collaborator Country Indian Company FDI Equity Inflow (in USD Million)
Ferrero International S.A. Luxembourg Ferrero India Pvt. Ltd. $ 31.34
Nivesh Investments Limited Mauritius Cavin Care Private Limited $ 25.47
Everfoods Asia Pte Ltd Singapore Modern Food Enterprises Pvt. Ltd $24.52
Ferrero S.P.A Italy Ferrero India Pvt. Ltd. $24.32
Kellogg Company USA Kellogg India Pvt Ltd $23.97
Kerry Group BV Netherlands Kerry Ingredients India Pvt Ltd $ 21.53
Mars International USA Mars International India Pvt Ltd $ 114.63
Mondelez International USA Mondelez India $192.65
Linde Group Germany Linde India Limited $ 200.00
Bauli India Italy - India Bauli Group $ 40

Other Key Companies:

Company name (Brand) Country (India presence – Pan India Major products
HUL (Kissan) Anglo-Dutch Soups, bakery, RTC
Nestle (Maggie, Nescafe) Switzerland Pasta, RTC, cooking aids (masalas), coffee and tea, chocolate powder,
Parle Agro (Parle) India Biscuits, beverages
Perfetti Van Melle Italy Confectionery
Britannia Industries (Britannia) India Biscuits, bakery and dairy
Kraft Foods (Cadbury) USA Chocolate
PepsiCo (Pepsi, Frito-Lay) USA Snack food, beverages
Bauli India Italy Confectionary
Coca-Cola USA Beverages
ITC (Sunfeast) India Biscuits, noodles, snack food, confectionery, RTE
Ferrero Italy Chocolates
McCain Canada Frozen Food products
Danone France Nutrition products - Dairy and plant-based products
Del Monte USA Food products – Pasta, Sauces, Dips & Spreads, Fruit & milk drinks, Packaged Fruits and Vegetables
Kelloggs USA Cornflakes and Cereals
Unilever United Kingdom Tea, Coffee, Ice Creams, Preserves
Cargill USA Edible Oils, Fats & Flour
Hershey USA Confectioneries, Dairy and Soya products, Beverages
Metro Cash & Carry Germany B2B & Wholesale chain of stores for Imported Foods, Fresh Fruits & Vegetables
Walmart USA Wholesale Store for all kinds of Food Products
Yakult Japan ProBiotic Beverages
Amazon USA On line Retail store for all kinds of Food Products

Global e-commerce giant, Amazon is planning to enter the Indian food retailing sector by investing US$ 515 million in the next five years, as per Mr Harsimrat Kaur Badal, Minister of Food Processing Industries, and Government of India.

Government Initiatives

  • In Union Budget 2017-18, the Government of India has set up a dairy processing infra fund worth Rs 8,000 crore (US$ 1.2 billion).
  • Under the Project Imports Scheme, industrial plants, irrigation projects, and power projects are eligible for concessional customs duty. Detailed mention of the concessional duty is: The basic customs duty rate for goods imported under the Project Imports Scheme is 5%. And, for certain specified projects such as a specified drinking water supply project, the basic customs duty rate is 0%. After the introduction of GST, goods that were initially subject to countervailing duty, are liable to an IGST at 18 %.
  • Budget Allocation to the Ministry of Food Processing doubled to reach 215.38 USD’ million, with the objective of doubling the income of farmers by 2022.
  • Another revolutionary initiative includes the establishment of Specialized Agro Processing Financial Institutions to deal with the installation of capital intensive projects in order to ensure affordable, timely and accessible credit to the sector.
  • Other development initiatives include Promotion of cluster-based development of agriculture commodities.100 % income tax deduction to Food Processing Organizations (FPO’s) having an annual turnover of 15.38 USD’ million derived from post-harvest value addition activities. To strengthen quality benchmarks, there will be setting up of state of art testing facilities in all 42 Mega Food Parks.
  • The Government has approved a Central Sector Scheme – PRADHAN MANTRI KISSAN SAMPADA Yojana (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with an allocation of Rs. 6,000 crore for the period 2016-20 coterminous with the 14th Finance Commission cycle. The following schemes will be implemented under the PM Kisan SAMPADA Yojana:

Government & Regulatory Bodies and Trade Association:

  • Food Safety and Standards Authority of India –
  • Ministry of Food Processing Industries –
  • Agricultural & Processed Food Products Export Development Authority (APEDA) –

Mega Food Parks

The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to the market by bringing together farmers’ processors and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers’ income and creating employment opportunities, particularly in the rural sector.

Mega Food Park is an inclusive concept and a scheme of the Ministry of Food Processing of the Government of India, aimed at establishing a “direct linkage from farm to processing and then to consumer markets” through a network of collection centers and primary processing centers. Its purpose was to increase the processing of perishables from 6% to 20% and to increase India’s Share in global food trade by at least 3% up to the year 2015. According to an estimate, the Indian food industry was to grow from $200 million USD to $310 million USD in 2015 by this scheme.

Highlights of scheme

  • The government provides grants up to Rs 50 crores for each food park to a consortium of companies. 42 food processing units are expected to be established.
  • Collective investment of companies is expected to be at least 250 crores.
  • A turnover of 400-500 crore and employment generation of at least 30000 from each mega food park is expected.

Currently, 17 Mega Food Parks, namely

  1. Srini Mega Food Park, Chittoor, Andhra Pradesh.
  2. Godavari Mega Aqua Park, West Godavari, Andhra Pradesh.
  3. North East Mega Food Park, Nalbari, Assam.
  4. Gujarat Agro Mega Food Park, Surat, Gujarat.
  5. Cremica mega Food park, Una, Himachal Pradesh.
  6. Jharkhand Mega Food Park, Ranchi, Jharkhand.
  7. Integrated Mega Food Park, Tumkur, Karnataka.
  8. Indus Mega Food Park, Khargoan, Madhya Pradesh.
  9. Paithan Mega Food Park, Aurangabad, Maharashtra.
  10. Satara Mega Food Park, Satara, Maharashtra.
  11. MITS Mega Food Park, Rayagada, Odisha.
  12. International Mega Food Park, Fazilka, Punjab.
  13. Greentech Mega Food park, Ajmer, rajasthan.
  14. Patanjali Food and Herbal Park, Haridwar, Uttarakhand.
  15. Himalayan Mega Food Park, Udham Singh Nagar, Uttarakhand.
  16. Jangipur Bengal Mega Food Park, Murshidabad, West Bengal.
  17. Sikaria Mega Food Park, West Tripura, Tripura.

With a view to promoting investment in Mega Food Park Ministry of Finance has covered Mega Food Park under Infrastructure category. Entrepreneurs looking for fully developed Industrial Plots to set up food processing Units and avail other related services may contact promoters of Mega Food Park. List of contact available here:

Integrated Cold Chain and Value Addition Infrastructure

The objective of the Scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centers which include infrastructural facilities. Status of Integrated Cold Chain projects available at

Total of 274 approved Cold Chain projects was approved as on 30th November 2018, out of which 129 are functional, 145 are ongoing. This presents a huge opportunity for equipment and technology suppliers. The existing gap for reefers, pack houses, and ripening chambers are worth exploring and investing.

Other schemes to support Food Processing and complement Food Parks are:

  1. Creation / Expansion of Food Processing & Preservation Capacities
  2. Infrastructure for Agro-processing Clusters
  3. Creation of Backward and Forward Linkages
  4. Setting Up/Up-gradation of Quality Control/Food Testing Laboratories

Fairs And Exhibitions

Fairs Venue Exhibition Space Visitors in Previous Edition Dates
ANUTEC International FoodTec India Pragati Maidan, New Delhi (16,000 Sqm) 10,972 13th - 15th Sep, 2019
ANUTEC- International FoodTec India as "the platform" in India for the food and drink industry. The industry meets at this show to exchange new developments and showcase the future of the food and drink industry in India. The complete range of the industry requirements will be on display at ANUTEC International FoodTec India. The 14th edition of India's biggest and most sought after trade fair for food and drink processing suppliers industry- ANUTEC International FoodTec India along with its concurrent trade fair PackEx India will be organized during September. 13-15, 2019 in New Delhi
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
AINDIAPACK - PACPROCESS New Delhi (16.500 sqm) More than 10,000 5th – 7th December 2019
Pacprocess India is the leading event for the processing & packaging industry in India 95% presence of Indian market leaders and over 80% of decision makers among the visitors are attending the trade show every year. Over 92% of all exhibitors show new developments, products and solutions of the processing & packaging industry at every event. Attend a trade show trio (together with food pex) which is unique by representing the entire value chain of an industry at once while also presenting tailor-made solutions and innovative concepts
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
India FOODEX 2019 Bangalore 50,000 - 200,000 Visitors 30th – 1st September 2019

In order to introduce latest technological innovations, launch exclusive range of products and services among thousands of Food Processors, Machinery suppliers, importers and exporters, Media Today Group is organizing the 11th edition of 'India Foodex 2019' from 30th August - 1st September 2019 at BIEC, Bangalore, India.

"India Foodex 2018" besides India, attracted participation from 30 countries and was an excellent expo and received tremendous support from all quarters.

Fairs Venue Exhibition Space Visitors in Previous Edition Dates
FI INDIA - FOOD INGREDIENTS INDIA Mumbai 6000 m2 (2018) 8,800 attendees (2017) 21st – 23rd October 2019
Since its launch over 12 years ago, Fi India & Hi is the only B2B event in the Indian sub-continent for the food and health ingredients, processing and packaging industry. The event offers industry leaders the opportunity to source high quality ingredients, network with professional peers and expand their market share.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
POULTRY & LIVESTOCK EXPO Bangalore 7000 30th August – 01st September 2019
International Poultry & Livestock Expo successfully attempts to bring leading poultry and Livestock players of India, specially Poultry and Dairy equipment manufacturers, breeders, food products exporters, experts & leaders from the industry, of course, along with, farmers' delegations - in fact all stakeholders to a common stage. This event brings with it Veterinary Products and Services, Dairy Technology, Animal Biotechnology and Bio Security, Animal Nutrition and Health Products, Poultry Turnkey Projects Suppliers, Poultry Incubators Manufacturers, Dairy Farming Equipment, Poultry and Cattle Feed Machinery, Poultry and other animal Breeders, Animal Laboratory and Instruments in the Meat, Poultry & Seafood industry.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
ANNAPOORNA - WORLD OF FOOD INDIA Mumbai 45,000 sq.mtrs 10,232 29th– 31st August 2019

The 14th edition of Annapoorna ANUFOOD India 2019 will be synchronized with the world’s No.1 trade fair for the food & beverage industry- ANUGA and is scheduled to be organized during August 29 - 31, 2019. The event is an extraordinary B2B platform for the Indian food & beverage market; jointly organized by Koelnmesse YA Tradefair Pvt Ltd and Federation of Indian Chamber of Commerce and Industry (FICCI).

Annapoorna ANUFOOD India, by its increasing quality in the exhibitors and visitors has paved a way as a most sought-after trade fair in India and subcontinent .

Fairs Venue Exhibition Space Visitors in Previous Edition Dates
PACKPLUS New Delhi Spread across ten halls of Pragati Maidan More than 20,000 28th – 31st August 2019
PackPlus attracts industry stalwarts and market regulators from packaging, pharmaceutical, and food industry to discuss the recent developments related to these sectors. It provides the opportunity forattendees to share the platform with representatives and professionals from package development, production and procurement industries and to generate sales leads and to establish a business relationship with potential clients. Products such as counting, weighing, forming, filling, closing, bottling, sealing machines, jugs, cups, drums and containers.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
AGRI INTEX Coimbatore Entire complex is 40 acres 1,48,700 12th – 15th July 2019
AGRI INTEX wishes to introduce contemporary agriculture, horticulture, dairy farming and food processing technologies along with their best practices. This can inevitably help countless farmers and platform owners. CODISSIA is fully geared up to host the 19th edition of India’s Prime Agricultural Trade Fair AGRI INTEX 2019 from July 12th to 15th 2019 at the CODISSIA Trade Fair Complex, Coimbatore, Tamilnadu, India.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
AAHAR New Delhi > 60,000 Sq. Mtr 200,000+ Visitors 12th – 16th March 2019
AAHAR The International Food & Hospitality Fair, New Delhi, India, is in its 33rd year. Organized by India Trade Promotion Organisation (the premier trade promotion body of the Government of India), AAHAR is one of Asia best known brands in Food & Hospitality shows. The show has grown by leaps & bounds in recent years and is today the well known destination for global vendors and sourcing professionals.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
11th Edition -SAGRITECH INDIA Bangalore 40,000 m2 30th August – 01st September 2019
In consonance with the efforts of Indian Government, Media Today Group is organizing AGRITECH INDIA 2019 - International Exhibition on Agriculture, Farm Machinery & Agri Processing Technologies in Bangalore International Exhibition Center (BIEC), Bangalore, India, from 30th August - 1st September, 2019. The event will pump in more value additions to the existing technology from all over the world.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
INTERNATIONAL FOODTEC INDIA New Delhi > 16000 SqMtrs > 10,000 13th – 15th September 2019
The success of the previous 13 editions demonstrates the leadership of ANUTEC- International FoodTec India as "the platform" in India for the food and drink suppliers industry. Who's who of Food and Drink processing industry meets at this show to witness latest technologies, exchange ideas which will help in driving Food and Drink Industry. The 14th edition of India's biggest and most sought after trade fair for food and drink processing suppliers industry- ANUTEC International FoodTec India along with its concurrent trade fair PackEx India will be organized during September. 13-15, 2019 in New Delhi.
Fairs Venue Exhibition Space Visitors in Previous Edition Dates
AGRITEX INDIA Hyderabad Approx. 52,000 sq.m. 50,000+ visitors 05th – 7th September 2019

This International Agricultural, Dairy and Food Processing Trade Fair, will be an opportunity for all those involved in the fields of Agriculture, Dairy & related activities to expand and diversify their business in India.

Agritex India offers you the business potential both in terms of quality and quantity. It is one place where you can make direct contact with your customers, key players and check out what your competitors are doing.

Fairs Venue Exhibition Space Visitors in Previous Edition Dates
ICCS - INDIA COLD CHAIN SHOW Mumbai 6,500 Sqm Gross Area (2017) 4,759 (2017) 04th – 06th December 2019
India Cold Chain Show 2018 truly defines and demonstrates the entire cold chain industry. It is the only show which touches every dimension of the cold chain industry bringing to its participants a grand overview of new products, machinery, services, technological advancements and a lot more. The show broadly touches three major segments of the cold chain industry namely cold storage, cold transport and cold supply chain.

Fairs in Italy:

  • FIERA INTERNAZIONALE DEL BOVINO DA LATTE – Cremona (Italy) – International Dairy Cattle Show
  • CIBUS TEC – Parma (Italy) – Food Processing & Packaging Technology Exhibition
  • IPACK-IMA – Milan (Italy) – International Exhibition Packing and Packaging,
  • Mechanical Handling, Food-processing Industrial Machinery
  • MACFRUT – Rimini (Italy) – International Exhibition of Plants, Technologies and Services for the Production, Conditioning, Marketing and Transport of Fruit and Vegetables
  • INTERPOMA – Bolzano (Italy)
  • International Trade Show for Apple Growing, Storage and Marketing
    TUTTOFOOD – Milan (Italy) – Professional Food Business Exhibition
  • SIGEP – Rimini (Italy) – International Exhibition for Artisan Production of Ice-cream, Pastry, Confectionery and Bakery
  • EUROCARNE – Verona (Italy)

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