Saurabh Gupta | 19 Jul, 2008
Underscoring the quality, packaging, competitive pricing and innovative marketing strategies, the chiefs of leading Indian and global players in the food processing industry has concurred that India is well poised to tackle the changing market profile and has a huge global opportunity in this sector.

Participating in the two-day 'Processed Food Advantage India 2008' organized by Confederation of Indian Industry (CII) and the Ministry of Food Processing Industries, they said that building relationships was essential to realize the potential for export led growth for the Indian food processing sector.

Outlining the expectations of global buyers, Andreas W Bauer of Roland Berger Strategy Consultants said "the Indian market presents a huge opportunity for international players. However, issues still remain over quality, ethics and standards and the Indian industry should tackle this on a priority basis."

Agreeing with him, Rajan Chhibba, of Intrim Business Associates, said " the time was right for domestic companies to widen their markets by focusing on the mainstream market rather than just the Indian diaspora. For this, they needed to forge global partnerships, restructure the supply chain and ensure consistency in standards."

According to Mr. Shrijeet Mishra, Executive Director, Hindustan Unilever Ltd, India presently accounts for less than 1.5 per cent of international food trade, which indicates that both investors and exporters are yet to gain more from the industry. The industry requires massive investment to create the necessary infrastructure, use state-of-the-art-technology and expand production facilities to match international quality and standards.

Mr. Ravi Nigam, Managing Director Tasty Bite Eatables Ltd, pointed out that the growing economy and a shift in the consumption pattern, from cereals to more varied and nutritious diet have been the key factors behind the growth of the sector. "The time is right for the industry to become conscious of what it is producing, the market it is serving and the standards it is setting."

Mr. Marc E Kalton, Managing Partner of US' EDICA LLC, pointed out that retailers worldwide were seeking to forge relationships with suppliers who could play large volumes with low margins or small volumes with large margins. "Important here is quality, consistency and ethical trading practices." Mr. Mike Cockrell, Chief Merchandising Officer of Bharti Wal-Mart Pvt Ltd, said that today while India had obtained global recognition as a food supplier, "brand recognition was yet to gain ground in the country."

"Indian companies must promote quality products while addressing issues like food safety and standards", said Mr. Daniel Allamand, Chief Procurement Officer of Gate Gourmet Store.

Similarly, Mr. Max Manjit Mohan, President Pacific Century Group and Mr. Tadgh Geary of Pallas Foods from Ireland, pointed out that Indian companies must realize that "first impressions create lasting businesses" and focus on products that are aspirational in nature.

More than 30 global players took part in the two-day summit , which saw the active participation of over 120 domestic companies, including Britannia Industries Ltd, Kaventer, Rasna International, MTR Foods, Tasty Bite, Safal, Priyagold and the Tea Board of India. The main objective of the two-day seminar organized by CII and the Ministry of Food Processing was to provide a platform to showcase the prowess of the Indian processed food industry and offer producers and manufacturers a chance to network with the international industry.