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Food processing plant and machinery in 2024-25 to stand at $51.41 bn
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Tuesday, 22 October, 2019, 08 : 00 AM [IST]
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Archa Shah and Umesh Kamble
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India is the second-largest food producer in the world after China. According to government estimates for the fiscal year 2015-16, the country’s total food market valued at US$39.71 billion and is projected to double in the next 10 years. Having successfully attained self-sufficiency in food, India benefits from marginal surplus in production, and is among the leading global producers of fruits and vegetables, milk, cereals and wheat.
India’s vast agricultural resources alone create huge potential for investments in its food processing and equipment industries. Major areas holding scope for value-added processing are in the canning, packaging, dairy and food processing, frozen food and thermo-processing industries.
Currently, food processing accounts for almost one-third of the total food market in India. The food processing industry is valued at US$258 billion, and is the fifth-largest industry domestically in terms of production, consumption, export and expected growth in the country. It contributes to around 14 per cent of manufacturing Gross Domestic Product (GDP) and 13 per cent of India’s total food exports.
Market for plant and machinery in the industry
With such major developments, the market for plant and machinery in the food processing industry in the year 2024-25 is poised to stand at US$51.41 billion. High growth food segments within the food & beverage industry are breakfast cereals, savoury snacks and ingredients such as seasonings and dressings and pet food.
To ensure best-in-class food quality and safety, MoFPI (Ministry of Food Processing Industries) provides grant-in-aid of 50% of laboratory cost, 25% of technical civil works cost to house the equipment and furniture and fixtures associated with the equipment without ceiling which is decided on a case to case basis.
The growth in the processing equipment market in India is driven mainly by the increased demand for processed food products. The consumer is shifting towards more value-added food categories such as yoghurt, cheese, processed meat and ready-to-eat food products. In addition, there is a growing demand for processing basic products such as fruits, vegetables and grains which require technologically advanced equipment.
Therefore, there is a need to adopt new methods, technology, and machinery for the food processing industry with least impact on sensory qualities such as colour and texture. Technological advancements are necessary for the growth of the sector and for the diversification of the existing production capacity of the food processing industry.
There are equipment manufacturers specialising in manufacturing equipment used in the food processing sector and support infrastructure addressing unique features of the industry. Some of the key features of equipment used in food processing sector are high precision, automation with high speed, ability to withstand harsh cleaning agents, precise temperature control among others.
Food processing requires high precision in the equipment for quality, safety and hygiene. Stainless steel fabrication is must for any machinery that comes in direct contact with the food product and must be free of cracks and crevices that might retain food particles.
The automation requirement in food processing equipment is quite advanced and sophisticated. Largely, the machines used in the industry have similar automation and motion control needs, such as material conveying and positioning, heating, drying and cooling.
Food processing equipment have a constant need for cleaning and disinfecting, gentle handling and precise control of temperature, pressure, treatment times and other process parameters. A number of digital sensors, pipes, transmitters, tanks, tubes are used in the processing line. These equipment need to withstand harsh cleaning agents, ranging from steam and water to alkaline solutions, organic solvents, hypochlorite, iodine compounds and nitric acid.
Processing stages and characteristics of equipment
1) Raw Material Preparation
Each manufacturing plant contains a collection of industry-standard equipment and customised models configured to best suit a specific process.
Liquids preparation requires storage tanks (jacketed and non-jacketed for heating and/or cooling), pumps and piping, and heat exchangers.
Dairy preparation includes receiving, piping, storage tanks, pumps, pasteurisers, separators and dryers.
Animal preparation is largely done by automated equipment specific to the industry.
Vegetable preparation includes washing and chopping, sorting by colour, adding preservatives or other processes prior to packaging.
2) Processing Equipment
Food processing is unique in that there are several ways to accomplish the same process.
Processing liquids such as soups and oils require heating and fractionating equipment, as well as vessels, many of which are jacketed to allow steam heating or cold water cooling.
Dairy processing involves pasteurisation, separation, and drying, mixing and cheese- making storage. Clean-In-Place (CIP) systems are installed primarily in liquid processes, like dairy for the purpose of cleaning the interior of the equipment without disassembling it.
The conversion of meat products into finished goods can be done through grinding, cooking, blending, stuffing and trimming.
Vegetable processing consists of colour sorting, shucking, mixing, cooking and chilling.
3) Packaging Equipment
Every product has different packaging requirement.
Vegetable packaging is similar and also includes canning and freezing.
Canning equipment has a strong secondary market due to its versatility, and spiral-type freezers are also desirable.
Liquids are canned, boxed or bagged, and packaging for milk products varies depending on the end-product.
Meat can be packaged fresh or frozen. Although most modern packaging equipment has digital controls and operates at high speed, meat packaging remains labour-intensive.
Further, sub-sector-wise import data presents the breakup of imports for the sub-sectors.
Bakery, cocoa and chocolate processing is the largest sub-sector importing equipment for food processing. Also, there has been an overall increase in the imports in the last five years for most of the sub-sectors excluding dairy and bakery, which decreased in the year 2015-16 as compared to the year 2016-17.
Strong demand and growth opportunities for equipment manufacturers It is estimated that the gross value of plant and machinery deployed in food processing sector, by the year 2024-25 will be US$51.19 billion.
The large contribution to this market size are cereals processing, dairy processing, prepared meals and all other food products.
Government Policy Support Aiding Growth
1) Foreign Direct Investment in Food Processing; 2) Credit Infusion; 3) Grant Support
A) Pradhan Mantri Kisan Sampada Yojana (PMKSY); B) Other Organisations Offering Grant Support In this way Make in India has benefited food processing machinery industry.
(Shah is head consultant and Kamble is CEO and founder of Farm To Fork Solutions. They can be contacted at umeshretail@gmail.com)
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