Food and Agro Processing Infrastructure : Gujarat

Indian Overview

Gujarat Scenario

Anil Group - Background

Anil Mega Food Park – Food & Agro Processing Infrastructure

• 2nd largest producer of Fruits & Vegetables

Indian Overview

• 3rd largest producer of Food grains

• World’s largest producer of Milk

• Offers 46 out of 60 soil types and 20 agro-climatic regions; has 52% cultivable land compared to world avg. of 11%

• Agriculture contributes to 18% of Indian GDP and Food Processing contributes to 14% of the manufacturing GDP

Food Grains | Spices | Fruits & vegetables | Diary products | Meat &

poultry | Fisheries | Flowers | Processed foods & beverages

Segments of the Food & Agro Industry

Government Support and Enablers

Focus in the 12th Five Year Plan will be "mechanization of agriculture"

• Agricultural credit raised to USD 107.4 billion - an increase USD 18.7 billion

• National Mission on Food Processing to be started in

cooperation with States in 2012-13

• Proposal to allocate USD 56 million to intensify Irrigation Development Programme

• Interest subvention scheme for providing short term crop loans to farmers

• Project launched with World Bank assistance to improve productivity in the dairy sector

Sources: Union Budget 2012-13

Government Support and Enablers

Food processing industries included in the list of priority sectors for bank lending

• Approval for foreign equity up to 100% permitted for most of the processed food items

• Fringe Benefit Tax on food processing is abolished.

• Investment linked tax incentives are extended to cold chains and warehousing of agricultural products.

• Creation of NABARD’s fund for funding the sector.

• Customs duty and excise duty reduced progressively on machinery and other inputs

• 30 Mega Food Parks approved, 15 are ongoing projects

Sources: Ministry of Food Processing Industries (MoFPI); The Times of India

• Out of the total geographical area of 19.6 million hectares in Gujarat, total cropped area is around 12.8 million hectares (65%).

Gujarat Scenario

• Gujarat has 8 agro-climatic zones and wide varieties of soil

• Gujarat tops the agriculture growth table in the country growing at an average CAGR of 10.7% over the last decade.

• Under the MIS Scheme .32 million hectares were covered and 2.0 lakh farmers benefitted during 2005-11 period.

• GoI and GoG have spent Rs. 8530 million during 2005-2011 under Micro Irrigation System (MIS) Scheme

Sources: Socio Economic Review 2011-12 of Gujarat; Department of Agriculture and Cooperation, GoI; Gujarat Green Revolution Company Ltd.

Key Segments

• Food Grains : Production during the year 2011-12 is estimated at 10.1 MMT against the production of 5.6 MMT in 2009-10

• Gujarat leads in the productivity levels of major fruits and vegetables

• Gujarat has the highest productivity in custard and guava production in India

• World’s largest producer of cuminSources: Socio Economic Review 2011-12 of

Gujarat; Department of Agriculture and Cooperation, GoI; Dept. of Horticulture, Gujarat

• Cotton : The production of cotton in Gujarat amounts to 31% of production in the country

• Fruits, Vegetables & Spices : Growth in vegetable production was the highest and recorded 45% growth in volumes in 2011-12 as against 2008-09 production figures

Key Segments

• Flowers : State has taken a lead in the sector of establishing Green House by producing high value flowers like Dutch Roses, Gerberas and Carnation. Government of Gujarat offers 50% subsidy for setting up green houses

• 17 Cooperative dairy plants & 25 private dairy plants

• 14,598 Milk Cooperative Societies• 11.5 million liter/day milk

production• 3.01 million of milk producers

Sources: Socio Economic Review 2011-12 of Gujarat; GAIC; Directorate of Animal Husbandry, Cow breeding and Fisheries, Gujarat,

• Fisheries : Gujarat contributes 28% portion of the national marine export in quantity and 15% in terms of value

• Animal Husbandry : Animal husbandry plays a vital role in Gujarat’s rural economy, while contributing nearly 5% to the state GDP

Gujarat Dairy Facts

Gujarat Cooperative Milk Marketing Federation (GCMMF)

State Government Initiatives

• Three phase 24×7 electricity supply to all villages (Jyotigram Yojna) • Enabling of Contract Farming • Framing of Bio-technology Policy & Agri Business Policy• Policy for waste land utilization • Financial assistance up to Rs 7.5 million is made available to educational institutions

like universities, colleges running degree/diploma course in food technology for starting the course as well as for up gradation.

• Gujarat Agro Industries Corporation (GAIC) - Promotes agricultural activities at the ground level and helps in development of agro industries and accelerates demand-based production of agro products to develop agro industries in the new global agricultural environment.

• Gujarat State Horticultural Mission (GSHM) - formed for implementation of “National Horticulture Mission (NHM)” in the state, with a view to double the horticulture production and income, through simultaneous development of post harvest infrastructure and marketing facilities. The Mission is being implemented in 15 potential districts and covers 10 important crops of the state viz. mango, chikoo, amla, banana, papaya, lime, cumin, fennel, flowers, medical and aroma crops.

Sources: Agriculture & Co-operation department, Gujarat

Trend in Investments

• The State has received cumulative foreign direct investment (FDI) inflows worth USD 7.2 billion during April 2000 to April 2011

• 690 MoUs & Announcements were signed in Vibrant Gujarat 2011 for projects to be established in the Food and Agri sector

• Proposed investment – INR 34,851 crore

• The average investment per MoU is about Rs. 50 crore

Sources: iNDEXTb, Vibrant Gujarat, Gujarat

Investment Oppurtunities

• Export-oriented processing unitsValue added processing based on local resources

• Gujarat’s 1st Mega Food ParkFinancial participation of Ministry of Food Processing, Govt. of India, promoted and developed by Anil Group, a Gujarat based industrial group since past 7 decades

• Agri / horticulture infrastructure projects Cold storage, fresh fruits and vegetables pack house, mechanized grain handling and storage at port, Food Parks, terminal markets, irradiation centers

• The present scheme/benefits of Mega Food Park of Government of India will be extended to the Mega Agribusiness Parks in Gujarat

• 4 Mega Agribusiness Parks to be developed over the next 3 years• The existing scheme under Industrial Policy in Gujarat will be modified to increase

provisioning of external connectivity infrastructure from Rs. 10 crore to Rs. 30 crore

Food Processing – Value Chain

“Anil Mega Food Park” – The Contributor

Value chain stakeholders — 3 C’s of the food business viz.Consumers, Creators and Contributors

• “Consumers” —Includes the consumers of various Agri and Food products either in the domestic or the export market.

• “Creators” — Includes ones producing to meet customer demand, covering the agricultural and farming landscape in India. They would include all the farmers growing food products, raising livestock, etc.

• “Contributors” — The contributors are defined as those supporting the creators to connect with the consumers. They would include Infrastructure providers, delivery intermediaries, commodity exchanges, processing and manufacturing companies and retailers.

• Projected investments - over Rs.150 Crores (USD 30 Million)

• Anil Mega Food Park to attract estimated investments of over Rs.1000 Crores (USD 200 Million) from participating Food Processing Units

• Anil Mega Food Park will provide a platform for establishing backward and forward linkages covering the entire food processing value chain and implement best practices in post-harvest management.

• Gujarat’s 1st Mega Food Park with financial participation from Ministry of Food Processing, Govt. of India.

Anil Mega Food Park

Radeecal Communications, Gujarat

Thank You

Radeecal Communications and Gujarat Welcomes you