While the big player (read Indian government) is playing the ‘bore-me-to-death wait and watch’ game in the tightly regulated domestic food processing industry, it’s the smaller players that are bearing the brunt, for not being able to relish the fruits of their efforts. angshuman paul and romsha singh write a cheesy note...
Though, big corporate houses have enhanced their competitiveness in this sector, yet only a few have actually started the process of backward integration to venture into the arena of food processing. In fact, many of them still don’t have any inclination towards setting up a sturdy base with adequate logistics and infrastructure, a necessary condition for the healthy growth and development of the Indian food-processing industry. What’s worse, even players like the Mittals, Godrej, Ambanis and several of their ilks, who are currently feasting on the sizzling hot opportunities offered by the Rs.3.6 trillion Indian food & beverage industry (which is swathed by the brawny recession proof raincoat), have shown no intentions to pay adequate attention to the global market, unless they have a dependable strategic alliance with some global behemoth. For instance, Mahindra Shubhlabh Services Ltd. (MSSL), the agri-business arm of Mahindra & Mahindra Ltd. has tied up with South Africa’s ‘Capespan’ to export branded fruits (under the MSSL brand name) to South Africa. So, what is really scaring the soul out of players in the Indian food processing industry? The truth is that players in India and overseas look at India as simply a forest of raw materials and agricultural produce and not as an industrial hub for manufacturing as P. L. Kaul, President, All India Food Processor’s Association (AIFPA) regrettingly adds, “Even a multinational like Coca-Cola is also looking at India as merely a sourcing hub for global players, and is in no mood to set up any processing unit here...” Therefore today, when it comes to deriving full-fledged opportunities in the country, the game is simply left to the SMEs, truly depriving the industry of the much-needed investments!
Though, big corporate houses have enhanced their competitiveness in this sector, yet only a few have actually started the process of backward integration to venture into the arena of food processing. In fact, many of them still don’t have any inclination towards setting up a sturdy base with adequate logistics and infrastructure, a necessary condition for the healthy growth and development of the Indian food-processing industry. What’s worse, even players like the Mittals, Godrej, Ambanis and several of their ilks, who are currently feasting on the sizzling hot opportunities offered by the Rs.3.6 trillion Indian food & beverage industry (which is swathed by the brawny recession proof raincoat), have shown no intentions to pay adequate attention to the global market, unless they have a dependable strategic alliance with some global behemoth. For instance, Mahindra Shubhlabh Services Ltd. (MSSL), the agri-business arm of Mahindra & Mahindra Ltd. has tied up with South Africa’s ‘Capespan’ to export branded fruits (under the MSSL brand name) to South Africa. So, what is really scaring the soul out of players in the Indian food processing industry? The truth is that players in India and overseas look at India as simply a forest of raw materials and agricultural produce and not as an industrial hub for manufacturing as P. L. Kaul, President, All India Food Processor’s Association (AIFPA) regrettingly adds, “Even a multinational like Coca-Cola is also looking at India as merely a sourcing hub for global players, and is in no mood to set up any processing unit here...” Therefore today, when it comes to deriving full-fledged opportunities in the country, the game is simply left to the SMEs, truly depriving the industry of the much-needed investments!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
