Indian Food and Beverages sector which is one of the fastest growing industry in the country is expected to reach Rs 380,000 crore by 2017, revealed a report by FICCI-Grant Thornton.
According to the report, presently the industry is worth Rs 204,438 crore growing at a CAGR of 23-24 percent annually.
Dominated by quick service restaurants (QSR) and casual dining chains which accounts to 45 per cent and 32 per cent of the overall food business in India, the report added that both Indian and MNC chains are still less penetrated and there exists a large opportunity in this space to create bigger restaurant chains.
"The government recognises the F&B sector's potential for growth and job creation. Hence, it has been identified as a priority sector in the National Manufacturing Policy and is also amongst the top 25 priority sectors, which are being promoted across the globe to attract investments," commented Atul Chaturvedi, Joint Secretary, Department of Industrial Policy & Promotion while revealing the report at FICCI.
The report also focuses on how to improve ‘Ease of Doing Business’ in the food and beverages sector and make it more attractive for both Indian and foreign investors.
“I am confident that the deliberations of the seminar and the recommendations of the report would provide a roadmap for the industry to grow and achieve its true potential,” added Arbind Prasad, Director General, FICCI.
The report also said that the government should set up good infrastructure, cold chain processes, skilled labour and ease of licensing to foster the growth of the segment.
“The government has been of late focused on developing the food processing infrastructure through the promotion of cold chains and integrated food parks by subsiding the capital cost,” shared Vinamra Shastri, Partner, Grant Thornton India LLP.