1. Food Sector in India – Outlook and Investments 6th October 2016 Ozone Group Pharmaceuticals. Cosmetics. F&B. Wellness. North East Mega Food Park. OSCAR. BLIP Initiatives

2. 1 Business Models in Food Sector in India Funding Scenario in Food Sector Overview - Food Processing in India Discussion Thread Recent Developments & Govt. Initiatives

3. 2 Food Processing is a key focus sector for “Make in India” valued at ~USD 65 billion in 2015 and presents a huge market opportunity * Source: Ministry of Food Processing; estimates for 2015

4. 3 Food Processing is a key focus sector for “Make in India” valued at ~USD 65 billion in 2015 and presents a huge market opportunity * Source: Ministry of Food Processing; estimates for 2015 World’s largest producer of milk 2 nd largest producer of fruits and vegetables 3 rd largest fish producer Highest priority market for global Food Service Industry 10 million street food vendors; 6 million sell ready to eat Indian Food Processing Industry

5. 4 InputsProduction Procurement & Storage ProcessingRetailing Seeds, Fertilizers and Farm equipment Farmers, cooperatives and private companies Warehouses, cold storage and silos Grading, sorting, milling and packing Retail shops, malls, cash and carry National Seeds Corporation Limited, Cargill and Advanta India Ltd Farmers, Amul, ITC, Pepsi, Hindustan Unilever Ltd Food Corporation of India, Arshiya International ITC ltd, Cargill, Adani Enterprises, Olam International General Merchant Stores, Bharti- Walmart, Future Retail, Aditya Birla Retail Limited Key Activities Major Players Value Chain in Food Processing and Major Players Source: MOFPI, TechSci Research

6. 5 Food Retail Formats in India Organized 3% Unorganized 97% Food Retail Gourmet Store Supermarket Department Stores Discount Stores Hypermarket E-tailer Cash N Carry General Stores Convenience Stores Kirana Stores Street Markets Source: Krysalisco Report- Opportinities in Indian Food Retail

7. 6 Food & Beverage sector in India – Key segments * Source: Ministry of Food Processing; estimates for 2015 Agri-Grains & Cereals Beverages & Breweries Dairy & Poultry Food tech Food ProductsFood ServicesLogistics & Distribution Value added processed food Fine Dining Casual Dining Street Food QSR Cold Storage, Warehousing Distribution, logistics

8. 7 Business Models in Food Sector in India Recent Developments & Govt. Initiatives Overview - Food Processing in India Discussion Thread Funding Scenario in Food Sector

9. 8 Evolving Business Models in Food Processing Services Cold Pressed Juices / Salads E-Commerce Services Ready To Cook / Ready to Eat Organic Food / Wellness Discovery Services Delivery Services Helps find nearby restaurants and food points based on selected criteria Helps in delivery of food from nearby restaurants and food cooperatives Helps purchase food products online Foods which are not processed using industrial solvents or synthetic additives Commercially prepared ingredients / food to optimise ease of consumption Refers to juices that use a hydraulic press to extract juices from fruits and vegetables Products Raw Juices, Just Pressed, Juice Up, Salad days MTR, Mc Cain, Knorr, Sumeru Organic India, Just Organik, Nimble Organics Bigbasket Swiggy, Foodpanda, Faasos, Burrp Zomato Functional Drinks Sports drinks, energy drinks, probiotic, alkaline water Gatorade, Body Fuelz, Unived, Red Bull, Yakult Boxed Meal Services Subscription or random selection based home – cooked food delivery services Greenchef, Homechef, MC’s Lunchbox

10. 9 Business Models in Food Sector in India Recent Developments & Govt. Initiatives Overview - Food Processing in India Discussion Thread Funding Scenario in Food Sector

11. 10 PE / VC Investment Activity - 2015 Highlights :  44 investments of over $ 100 Mn in 2015 (compared to just 19 investments in 2014)  Buyout deals surge to 18% of the value pie (compared to just 6% in 2014)  Venture Capital Investments hit historical high figures, accounted for 64% of the pie in volume terms and 11% in value terms  Food tech funding and deal count climbed steadily from 2012 to 2014; accelerated in 2015 to 273 deals totalling over $5.6 Bn  Online food delivery in India grew 40% to INR 350 Cr. in 2015; accounted for 17% of the online services market; potential to become USD 15 bn industry

12. 11 Select Private Deals in 2015 – Deals across sub-segments (focus on Foodtech) Restaurant / Brand, VC / PEDescriptionInvestment ( USD mn) SwiggyHarmony Partners, RB Inv.Foodtech35 Fresh MenuZodus, LightspeedFoodtech17 FoodpandaGoldman SachsFoodtech / QSR100 ChaayosTiger GlobalBeverages5 Box8MayfieldFoodtech3 HolachefKalaari Capital, Ratan TataFoodtech3 YumistOrios Venture Partners, Unilazer Ventures & Individual Foodtech2 InnerchefTA Ventures & Endiya PartnersFoodtech1 BiteclubPowai Lake Ventures, GrowX Venture Management, Indivuduals Foodtech0.5 Raw PressarySaama Capital, DSG Consumer & Sequoia Beverages4.5 Go Ya NoIndividualsRestaurant Discovery0.5 TruceIndividualsVegetable Supply Chain- Lumiere, Organic Express IndividualsOrganic food retailer

13. 12 Select Private Equity Funding Deals Major Private Equity Investments in Food & Agriculture DateCompanyInvestorType of Business Deal Value (USD Million) August, 2015CremicaCX-Partners Manufacturer of snacks 24.56 April, 2014 Bikaji Foods Int. Ltd. Lihthouse Funds LLC Manufacturer and wholesale snacks 14.9 July, 2013VKL SeasoningsIndia Value FundSeasonings44.19 July, 2013Kohinoor FoodsAl Dahra HordingsRice21.17 June, 2013Milltec Group Multiples Private Equity Technology and machinery developer for agro mills and plants 43.2 April, 2013 Bush Foods Overseas Hassad FoodRice147.3 Source: Thompson ONE Banker, Assorted news articles, TechSci Research

14. 13 Business Models in Food Sector in India Recent Developments & Govt. Initiatives Mega Food Parks NEMFP Overview - Food Processing in India Discussion Thread Funding Scenario in Food Sector

15. 14 9 8 VAT/CST Concession7 6 5 Power Tariff Subsidy4 Skill Development3 Investment Subsidy2 Interest Subvention1 Marketing Assistance Transport and Export Incentives Research & Development Quality certification/Patent registration Govt. Support to Food Processing Policy 2015-2020: Key highlights 10 All permissions and clearances in 21 days under Single Desk Policy

16. 15 Mega Food Parks - Food Processing Policy 2015-2020 Fiscal Incentives (1/2) Subsidy Benefits o Power Subsidy: Power subsidy is provided to eligible units on power tariff paid by the unit on actual units consumed for a period of 5 years from the date of commercial production. 25% of the cost payable to State Power Distribution Company for drawl of power line to the premises of the unit including the cost of transformer is subsidized to Micro and Small industrial units o *Capital Investment Subsidy: Capital Investment Subsidy of 30% on the investment in plant and machinery and the limit for automatic approval of subsidy at this rate is INR 1.5 Cr. Per unit. o *Interest Subsidy: o Working capital - Interest subsidy is made available at 3% on working capital loan under NEIIPP, 2007 o Capex: Interest subsidy is provided to Micro industrial units @ 30% of the amount of interest paid on term loan to Bank/Financial Institutions for a period of 5 years from the date of commercial production subject to a ceiling of Rs. 1.00 lakhs per unit/year o NABAR Scheme: Loans to entities in Mega Food Park to be available at 9.5% -10% p.a. o *Transport Subsidy: 90% of the transportation cost of raw materials and finished goods to and from the location of the unit and the designated rail head (for movement of goods within NER, the subsidy is 50%) – for a period of 5 years from commercial production o License Fee Subsidy: The fees payable for obtaining BIS/ISO/FPO/AGMARK and fees payable for getting the technical know-how from recognized research laboratory / institutions like CFTRI, CIPET etc. by eligible units is subsidized to the extent of 50% NEIIPP: All eligible units are entitled for subsidies and tax exemption under the North East Industrial and Investment Promotion Policy (NEIIPP), established by March 2017, for a period of 10 years from the date of commencement of commercial production. * NEIIPP is under abeyance for the last 2 years and is expected to come into effect shortly

17. 16 Mega Food Parks - Food Processing Policy 2015-2020 Fiscal Incentives (2/2) Tax Benefits NEIIPP: All eligible units are entitled for exemption of tax payable under the North East Industrial and Investment Promotion Policy (NEIIPP), established by March 2017,for a period of 10 years from the date of commencement of commercial production. * NEIIPP is under abeyance for the last 2 years and is expected to come into effect shortly o Excise Duty Exemption: Fixed percentage rate Excise duty exemption on finished products made in the North Eastern Region subject o Income tax Exemption: 100% Income Tax exemption on finished products made in North Eastern Region under section 80IE o VAT exemption (limit of 90% to 200% of capital investments): Micro units: Amount of Tax Exempted or 15 years whichever is earlier. Other than Micro units: 1st & 2nd years: 100% 3rd & 4 th Years: 80% of tax payable subject to 50% utilisation of installed capacity 5 th to 15 Years onward: 50% of tax payable subject to 60% utilization of the installed capacity o *No Entry Tax: As part of the state government subsidy benefits in NER, all eligible micro/SSI/Medium/Large scale units including state PSUs are entitled for exemption of payment of Entry tax on Plant & Machineries purchased from other states. o *Comprehensive Insurance: New industrial units as well as the existing units on their substantial expansion are eligible for reimbursement of 100% insurance premium

18. 17 Government of India incentives for Food processing industries (1/3) SectorsProductsIncentive Dairy & Horticulture Milk, Milk Products, Vegetables, Nuts and Fruits (Fresh & Dried) Processed Fruits and Vegetables, Soya Milk Drinks, Flavored Milk of animal origin Nil Duty Merit rate of 2% without CENVAT or 6% with CENVAT Cold StorageAll refrigeration machineries and Parts used for installation of cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary, horticultural, dairy, poultry Pasturing, drying, evaporating, etc. machinery used in Dairy sector Nil Duty FisheriesMachinery for the preparation of meat, poultry, fruits, nuts or vegetables and on presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages and packing machinery Reduction from 10% to 6% Central Excise duty Incentives from GOI are in addition to Mega Food Park incentives

19. 18 Government of India incentives for Food processing industries (2/3) SectorsProductsIncentive Horticulture Construction, Erection, Commissioning or installation of original works pertaining to postharvest storage infrastructure for agricultural produce including Cold storages for such purposes Mechanized Food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages Services of Loading, unloading, packing, storage or warehousing of agricultural produce Services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables Services by way of transportation by rail or a vessel and by a goods transport agency used for transportation of agricultural produce and food stuff including flours, rice, pulses, tea, coffee, jaggery, sugar, milk, milk products, salt and edible oil, excluding alcoholic beverages Nil Tax Service Tax Incentives from GOI are in addition to Mega Food Park incentives

20. 19 Government of India incentives for Food processing industries (3/3) SectorsProductsIncentive Horticulture (Cold Chain Infrastructure) Setting up and operating a cold chain facility Setting up and operating warehousing facility for storage of agricultural produce Bee-keeping and production of honey and beeswax Setting up and operating a warehousing facility for storage of sugar 100% deduction in Expenditure (only for the investment made in the previous year and prior to commencement of its operations) New units engaged in processing, preservations and packaging of fruits or vegetables, meat & meat product, poultry, marine or dairy products 100% tax exemption for the first 5 years’ of operation, 25% of the profits being exempted from tax post that (30% in case of a company) Incentives from GOI are in addition to Mega Food Park incentives Income Tax

21. 20 Mega Food Parks – Operational Mechanism The broader objective of the North East Mega Food Park is to integrate the food processing sector with strong forward and backward linkages from the Farm to Fork. Central Processing Centre (CPC) acts as the nuclei of all value addition activities facilitated by Primary Processing Centres, which will act as point of aggregation and primary handling to provide ready to use raw materials to be processed further in the units to be set up in the CPC. The PPCs will be fed by field Collection Centres which will be the first point of contact with growers. North East Mega Food Park CPC Importer Exporter Domestic Sales Fresh Products Farmer Groups Self Help groups Individual Farmers CC PPC Field Collection Centers Primary Processing Centers: Precooling, Grading, Pulping, sorting, waxing, packing Central Processing Center: Pulping, Aseptic packing, CA chamber, cold store, QC Lab, Logistics center, etc. CC PPC 20

22. 21 Mega Food Parks - Thrust Areas of Food Processing Policy 2015-20 Processing / Collection Center Transportation Storage/Pack Houses Food Processing Parks Packaging Certification Standalone Laboratories Processing / Collection Centers (facilities including weighing, cleaning, sorting, grading, packing, milling, pre-cooling, CA/MA Cold Storage, Dry ware house, IQF etc. Refrigerated Transport Vehicles/Containers, insulated vehicles Cold storage, Warehouses Polythene, cardboard, carton boxes, aluminum foil etc. Testing facilities HACCP, FDA, FSSI, ISO Infrastructure, new facility creation Marketing Assistance Participation in events, setup of stalls, retail outlets etc. Skill Development Training centers, short-term courses, EDP etc.

23. 22 North East Mega Food Parks 2. Strategic Location & excellent connectivity 3. Tax & Subsidy Benefits 1. State-of-the-art infrastructure – Readily available 4. Ease of doing business 5. Access to community 50 acres developed infrastructure completed with cold storage, warehousing, office and standard factory, roads, utlities like water, electricity, ETP, etc. Over 2 lac sq. ft. of constructed building space CPC & 1 PPC Completed and ready for possession North East is a rich source of diverse varieties of crops; including a large variety of GI tagged crops, organic crops and other exquisitive varieties Over 60% population engaged in agriculture High literacy rate; almost all states above the national average All benefits w.r.t. excise, income tax, VAT, Power, etc. All benefits as per the NEIIPP 2007 Ready infrastructure – plug and play model for setting up a factory Single window clearance and high focus by the state and central govt. Mutual synergies from other participants in the campus

25. 24 Products from Assam Agrotech Pvt. Ltd. (a sister concern of Ozone)

26. We invite you to North East Mega Food Park for your Business

27. @ CONTACT Nitin Gupta – Head Strategy (HO) Phone: +91-9811912832 nitingupta@ozonegp.com Ronn Pakrashi - Chief Coordinating Officer (NEMFP) info@nefoodpark.com www.nefoodpark.com 26 North East Mega Food Park Limited Hotel Brahmaputra Ashok Complex M G Road, Guwahati – 781001 Assam Ozone Pharmaceuticals Limited 1 LSC, Block A3, Janakpuri, New Delhi

28. Annexures

29. Annexure 1: Potential for Value Added Products (1/2) HORTICULTURE FRUITS MangoPulp, Concentrate, Juice, Squash, Tandra/ bar, Pickle, Jam, Jelly, Candy, Dehydrated Slices, Mango frozen BananaJuice, Chips, Puree, RTS juice, Jam, Jelly, Wine, Banana Cheese, Flour etc. PapayaPapaya Puree, RTS juice, Pickle, Jam, Jelly, Squash, concentrate, Tutti Fruity etc. GuavaJam, Jelly, Candy, Pulp, Juice, concentrate etc. LimePickles, Juice, Dried Lime Peel CoconutWater, Milk, Milk Powder, Desiccated coconut, Chips, Candy, Flour etc. CashewnutDried nuts, Nut powder, Candy, Shell liquid PomegranateRTS juice, Jam, Jelly, Frozen Arils Oil palmEdible Oil, Sludge oil etc. TamarindConcentrate,, Tamarind Slabs Pulp, Paste, Concentrate etc. VEGETABLES TomatoPuree, Ketchup, Sauce, Jam, Paste, Dried Powder etc. OnionOnion Flakes, Powder, Paste etc, CarrotDiced Carrot TapiocaSago, Starch Powder, Starch Syrup SPICES ChilliChilli Sauce, Pickle, Chilli Powder TurmericPowder, Turmeric Dried Rhizomes, Curcumin.

30. AGRICULTURE RiceRice Flour, Rice Flakes, Puffed Rice SugarcaneRaw Sugar, Juice MaizeCorn Syrup, Corn Flour, Corn Flakes etc. GroundnutEdible Oil, Dried Powder, Cheese/ Puree DAIRY MilkCheese, Ice Cream, Pasteurized and Flavoured Milk, Butter, Paneer, Ghee, Butter Milk, Curd, etc. POULTRY EggEgg Powder MARINE RODUCTS Shrimp & FishFrozen Annexure 1: Potential for Value Added Products (2/2)

31. 30 Annexure 3: Active investors in Food & Beverage sector * Source: Ministry of Food Processing; estimates for 2015 SectorsActive Investors Agri Farming & ProcessingOmnivore Capital SEAF India Siva Ventures Packaged FoodDSG Consumer Blume Ventures Peepul Capital Sequoia Alcoholic BreweriesCataraman Ventures Standard Chartered PE Footprint Ventures Food Service - RestaurantsFootprint Ventures Helion Ventures SAIF Partners Food tech & Online GroceriesSequoia Capital SAIF Partners Info Edge Tiger Global Logistics & DistributionNexus Capital Everstone Capital Mayfield Ascent India

32. 31 Key Food Processing Technologies (Primary processing) IQFSpiral Freezing Ripening Chambers Pulping Machines  Individual Quick Freezing is the only process whereby all the properties of most of the foodstuffs could be preserved  Raw fruits and vegetables can be preserved for more than a year  Each piece is frozen individually using technique of fluidization  The belt is bent around a central supporting structure, maximizing the belt surface in a limited space. Good solution for gentle products as it minimizes product damage at transfer points  Ripening chambers are widely used as an effective forced draft cooling system which tunes the factors such as humidity, temperature, ventilation within each ripening chamber  Used to extract pulp from fruits, vegetables and other pulpy items. During the operation, seeds and skin get separated and discharge through a chute. Commonly used in canning industry and ayurvedic medicine manufacturing units