1. Post-harvest logistics and food processingby
salil singhal, chairman & mananging director,
pi industries ltd

2. Indian Food Industry – Emerging Opportunities
PI Industries Ltd
The Indian food industry poised for huge growth, increasing its contribution to world food trade every year.
Food production is likely to double in the next 10 years.
Food and grocery market world’s sixth largest, with retail contributing 70 per cent of the sales. It is projected to grow at the rate of 104 per cent, touching US$ 482 billion by 2020 (Source:
Food sector, especially food processing sector emerging as high-growth and high-profit sector due to its immense potential for value addition.
India largest producer of several agri commodities and consumer of food.
All 15 major climates of the World are present in India.
52% of total land is cultivable as against world average of 11%.
Proactive government policies with attractive fiscal incentives.
Huge Investments needed in post harvest logistics and supply chain management.
Demographic dividend with immense scope for skill development.
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3. PI Industries Ltd
India second largest producer in Fruits and Vegetables in the world with a production of 256 million MT (Source: MOFPI).
India world’s largest producer of bananas, papaya, mangoes & guavas second largest producer of potatoes, green peas, cabbage and cauliflower
The unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea
Nearly % wastage in fruits and vegetables annually
Hence opportunities in post harvest/logistics/processing sectors including in food safety segment

4. Opportunities In Dairy Sector
PI Industries Ltd
World leader in milk production: 146 million tonnes/annum
Expected to reach 180 million MT by 2020, while the demand projected (by NDDB) to reach 200 million MT
Huge scope for value added dairy products like ghee, flavoured milk & yogurt, butter (& variants), cheese, etc.
Scope for innovative packaging, cold chain and new technology for product processing.

5. Opportunities In Poultry Sector
PI Industries Ltd
Annual egg production: 75 billion eggs (Source: MOFPI).
The current processing level in poultry : only 6 %.
Poultry is a highly vertically integrated industry in India and matches the efficiency levels of many western countries.
Farm automation, logistics, processing, point of sale cold storage infrastructure and new technology offer opportunity
Need for egg powder plants.
Scope for new feed formulations and manufacturing.
Modern Hatcheries

6. Post Harvest Losses of Major Agricultural Produces
PI Industries Ltd
The annual value of harvest and post-harvest losses of major agricultural produces at national level of the order of US $ b (data of at 2014 wholesale prices.
Crops
Cumulative wastage (%)
Cereals
4.65 – 5.99
Pulses
6.36 – 8.41
Oil Seeds
3.08 – 9.96
Fruits & Vegetables
4.58 – 15.88
Milk
0.92
Fisheries (Inland)
5.23
Fisheries (Marine)
10.52
Meat
2.71
Poultry
6.74
Source: GoI Report on “Assessment of Quantitative Harvest and Post-Harvest Losses of Major Crops and Commodities in India” by ICAR - Central Institute of Post-Harvest Engineering and Technology (CIPHET), Ludhiana.
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7. Challenges In Post harvest Management
PI Industries Ltd
Lack of modern post-harvesting practices
Poor infrastructure facilities for
Storage, including cold storage
Logistics & cold chain handling
Transportation
Processing
Packaging
Distribution
Lack of Processing facilities at the farm gate
Dearth of Innovative on-farm preservation systems
Low level of Research and Development
Shortage of Skilled Manpower
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8. Requirement: Investment in Post-Harvest Infrastructure
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9. Cold Chain: Status & Opportunities
Production of more than 400 million MT of perishables every year.
Cold storage capacity around 31.8 million MT (Source: NHB).
Geographically clustered facilities
4 states provide around 70% of cold store capacity
Overall average capacity utilization in cold storage is 75% - showing sustainability of the cold chain business in India.
Industry is largely fragmented and unorganized.
Dominated by one or two products
75% cold storage capacity used for potato
25 % multi-commodity cold storages
Pre-coolers and refer trucks facilities are negligible at present.
92% of cold storages owned and operated by private sector.
Large capacity in cold storage, CA storage, reefers, ripening chambers, IQF, milk chilling and processing, etc.
Requirement for cold chain across all states.
Need for energy efficient cold chain technologies in the entire agri & food value chain.
PI Industries Ltd
4/27/2017

10. Opportunities In Food Processing Industry
PI Industries Ltd
The Indian food processing industry accounts for 32 per cent of the country’s total food market, 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018 (
The Industry witnessed 7.1 % growth during , much higher than the growth in agricultural sector (Source: MOFPI).
Low level of processing –
2% in the case of fruits and vegetables
35% in Dairy
23% in Marine Produce
21% in Meat and
6% in Poultry (Source: MOFPI)
India’s share in world’s processed food production-1%
Value addition 20% against 45% in Philippines
Estimated wastage fruits & vegetables in India 4.6 – 15.9 %
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11. Indicative Opportunities in Food Processing
New Technology in F&V processing, cold storage, reefers, IQF, pack houses and ripening chambers
New Packaging technology for enhanced shelf life, retaining taste and texture, attractive, easy to handle and space efficient
Modern storage facilities & logistics
Energy efficient technologies
Food testing labs
R & D Infrastructure
New products- Fortified products, health food, tradition Indian food, convenience food
Processed organic food specially baby food, confectionery and bakery items have an increasing domestic and overseas demand
New product development in beverages viz, flavoured teas, juice variants, health drinks, energy drinks, sports drinks
Packaged local drinks like nimbu pani, jaljeera, coconut water, etc
Infrastructure & Technology
Infrastructure & Technology
Processing
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12. Reasons for Sub Optimal Growth of Food Processing
PI Industries Ltd
Lack of access to world class technology
Lack of infrastructure, especially cold chain infrastructure
Inadequate investment
Agricultural development programmes focused generally on production
Post harvest handling including agri/food processing was not a priority agenda under agricultural extension
Lack of processing varieties
Absence of efficient supply chain management
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13. Key Fiscal Incentives PI Industries Ltd
100 % FDI permitted through automatic route in food processing sector.
Concessional rate of Customs Duty applicable on imported equipment
Capital expenditure income tax deduction allowed at the rate of 150 % for setting up and operating cold chains and agri warehouses.
100 % income tax exemption available to new food processing, preservation and packaging units for the first 5 years of operation, and at the rate of 25 % - 30% thereafter.
Cold chain projects eligible for External Commercial Borrowings.
Refrigeration machines and parts used for installation of cold storage, cold room or refrigerated vehicle, exempt from Excise Duty.
Cold chain services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of F & Vs exempted from service tax.
A fund of US $ 300 million with (NABARD) for credit to designated Food Parks and units therein.
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14. Thank you