Indian food processors may be divided into the following main categories:

• Large Indian companies that have their production base in India or neighboring countries (for tax-saving purposes)
• Public and private corporations
• Multinational and joint-venture companies that have their production base in India
• Subsidiary companies (foreign companies set up subsidiaries in the form of private companies)
• Medium/small domestic food-processing companies with a local presence
• Small local players in the unorganized sector
• Franchising

Recent Trends:

• Several multinational companies, including US-based companies like Pepsi, Coca Cola, ConAgra, Cargill, Heinz, Kellogg’s, IFF, and Mars (pet food only) have entered the Indian food-processing industry with significant investments.

• Similarly, Indian food and beverage companies are expanding their operations to neighboring countries like Bangladesh, Nepal, Sri Lanka, Commonwealth of Independent States countries, and the Middle East.
• Takeovers and mergers are beginning to occur in the Indian food-processing sector, leading to consolidation.
• Companies have added extras to their existing brands, including stylish packaging.
• Some previously unknown regional brands are gaining national acceptance because of consistent quality and product safety, thereby providing some competition to established companies.

Major Players Segment-wise:

• Cooking Oil: Although there are hundreds of regional/local processors and brands, the national-level players are Godrej, Dhara, Marico, Liberty, and Ruchi. In recent years, a number of multinational companies including Cargill, Adani Wilmar, and Bunge have set up operations in India, either through port-based refineries, trading subsidiaries, or brand acquisitions.
• Meat and Poultry: Major players include VH Group, Godrej, Sugunas, and Arambagh in the poultry processing sector, and Allana's, Hind Agro, Al Kabeer in the buffalo meat (“beefalo”) processing sector.
• Non-alcoholic beverages: Major players are Tata Tea and Coffee, HLL, Manjushree Plantations, Jay Shree, Goodricke, Harrison Malayalam, Eveready, Warren, Nestle, Barista, Qwiky’s, Narasu, Leo, and ABCTC.
• Alcoholic beverages: Key players are UB, Shaw Wallace, Jagatjit Industries, Mohan Meakins, and International Distilleries. Major multinationals operating in India include Diageo, Seagram, and Baccardi Martini. UB, SABMiller, and Mohan Meakins are the major beer-producing companies. Chateau Indage is the largest domestic player in wines, followed by Grover Wines and Sula Wines. Key international players who have a presence in India through distribution alliances include E&J Gallo, Hardy’s, Canandaigua, and Fetzer.
• Confectionary: The confectionary market is highly fragmented with several local players such as Parle’s, Nutrine, and Ravalgaon. Key foreign companies are Nestle, Cadbury’s, Perfetti, Lotte, Wrigley, Candico, and Joyco.
• Milling and Baking: Major players in grain processing are ITC, Pillsbury, HLL, Agro Tech Foods, and Shakti Bhog Foods. Major players in bakery segment include Britannia, HLL, ITC, Parle, Priya Gold, and Cremica and finally Pepsi, Haldiram, SM Dyechem, Bikanerwala, etc., dominate the snack food.
• Dairy products: Major players in this segment are Mother Dairy, Amul, Haldiram, Paras Dairy, Vijaya, Vadilal, HLL, Nestle and Bikanerwala etc.
• Processed food and vegetables: This segment is dominated by HLL, Marico, Nestle, Heinz, Priya Foods, Pepsi, Dabur, Godrej, Haldiram, ITC, MTR and Parle ect.

Profile of major domestic players

Profile of Multinationals and Joint Venture players

Next: Segment-wise attractiveness and competition

Indiabiznews, December 16, 2009