The India Food Drink Report Provides Independent Forecasts And Competitive Intelligence...

The India Food Drink Report Provides Independent Forecasts And Competitive Intelligence On India's Food And Drink Industry

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c85460) has announced the
addition of "India Food & Drink Report Q1 2008" to their offering.

India's fledgling food processing industry continues to fascinate
as investors, both local and multinational, begin ramping up their
commitment to the sector in preparation for what is expected to be
explosive growth. However, as the author examines in its
newly-published Q108 India Food & Drink Report, such investment is
still only targeting a minority of India's immense population, and the
effects of economic growth remain unfelt by the country's vast rural
majority.

The author believes that four key features of, or events within,
the new report ably sum up this trend. Local dairy major and ice cream
specialist Amul Dairy has announced plans to enter India's US$500mn
snack food market, via the addition of a savoury snack product to its
predominantly dairy portfolio. Meanwhile, Italian confectionery
company Ferrero SpA has unveiled plans to invest US$35mn in the
construction of a mint manufacturing plant in Maharashtra state, a
plant that will later look to target the growing premium chocolate
confectionery sector. Both investments are astute. Amul plans to
leverage its existing distribution strengths to gain a foothold in
what is an increasingly competitive sector, while Ferrero wants to
target a market whose small size bellies its potential. To 2012, the
author is forecasting growth of 22% in value terms in India's
confectionery market, a forecast that could well be dramatically
increased should more multinationals come forward in search of
opportunities.

Both manufacturers, alongside the more obvious names of PepsiCo's
Frito-Lay and Britannia, are looking to secure a slice of India's
US$69bn processed food industry, an industry growing so quickly that
the country's Ministry of Food Processing and Industry announced in
October 2007 that it could now boast a fairly dynamic export sector -
between 2003 and 2007 the value of India's processed food exports grew
by around 194% to US$13.9bn, according to ministry figures. However,
while this is certainly an industry sub-sector worth getting excited
about - as these latest investments show - it is also worth
considering the risks associated with investing in such an industry.

To 2012, the author is forecasting food consumption in dollar
terms to increase by just 9.4% in India, a very modest rate when one
considers the pace of the country's economic expansion. In per capita
terms this growth is even more telling, with food consumption expected
to rise by just 4.3% to reach US$150.50 in 2012. These forecasts
highlight the downside to India's otherwise immense potential. India's
vast rural majority are yet to feel the benefits of economic growth
and thus do not participate in consumer goods industries such as
processed foods, snack foods and confectionery. This explains why
India secures only a mid-table position in our new Food & Drink
Business Environment Ratings - the country's size being nowhere near
reflected in the size of its consumer audience. Ultimately India's
sheer size means this downside will not affect its capacity to attract
investment, but the amount of capital manufacturers will be willing to
invest without the promise of immediate and plentiful rewards remains
to be seen.

Companies Mentioned:

-- Coca-Cola India

-- Hindustan Unilever Limited (HUL)

-- Pantaloon Retail India.

-- RPG Retail

-- United Breweries Limited (UBL)

For more information, visit
here

Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets.com
Fax: +353 1 4100 980

Copyright Business Wire 2008