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“Food processing sector’s value could be $194 b by ’15”
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Monday, 15 December, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d  Vadilal Industries Ltd is a leading ice cream, ready-to-eat snack, curry and bread player, and one of the largest frozen vegetable exporters in India.
Its aim is to become an Indian multinational in ice cream and frozen foods, and to provide products and services at affordable prices without compromising on their quality.
In an email interaction with Anurag More, Rajesh Gandhi, the company’s chairman and managing director, spoke about convenience foods business in India. Excerpts:
Brief us about the various convenience foods available in the Indian market.
Convenience foods, as a category, has a wide range of products being marketed by various companies.
These include dairy products, processed meats, frozen foods, canned foods, ready-to-eat snacks and meals.
Tell us about Vadilal’s convenience food products range.
Vadilal Industries Ltd has a wide range of offerings under the convenience food category.
Our range of individually quick-frozen (IQF) vegetables comprises over 35 Indian vegetables. These include green peas, mixed vegetables, French beans, Tuver Lilva, sweet corn and cut and whole okra.
How large is the Indian convenience food segment, and what is Vadilal’s share in it?
As per various available sources, the packaged food industry in India grew at a compound annual growth rate (CAGR) of 15 per cent between 2007 and 2013.
In 2013, the contribution of the ready-to-eat segment to it was 90 per cent contribution.
The total value of the Indian food processing industry was around $12 billion in 2012, and is expected to touch the $194 billion-mark by 2015.
Fruit and vegetable production is currently just two per cent of the total production, and is expected to reach 25 per cent by 2025.
As of now, Vadilal Industries has a considerable share in the processed and convenience food market.
However, it constantly endeavours to expand its reach to as much consumers as possible with its quality products.
All this is done with the motto of delivering convenience with quality to Indian foodies.
What are the prevalent trends in the sector, and what trends are you likely to witness in it?
With the existing lifestyle, where the daily routine is hard pressed for time, the consumer is looking for convenience in all aspects of life.
Ordering food sitting at home is becoming a common thing. In such a scenario, convenience foods have come as a boon.
Fuelling this trend is the growing number of restaurants that now offer home delivery, either free of cost or at a nominal extra charge.
Be it a multi-national corporation (MNC) or a small restaurant round the street corner, all are forced to include what was once considered a value-added service as a basic one.
Further, the companies would have to keep looking for various ways to keep the consumer stuck to their food, apart from delivering tasty-quality-hygienic food. These may be discounts, loyalty schemes, etc.
The latest example of a soft drink giant introducing home delivery of its products to the consumers is a sign of the changing consumer trends and a challenges for companies to sustain themselves in this lucrative business.
What kind of opportunities does the convenience foods sector have?
In India, there is big gap in the total agricultural production (raw material) and the quantity of it utilised by the processed food industry.
This means there is a big opportunity to increase the overall production of convenience foods in the country.
India being the second most populated country is itself a tremendous opportunity.
The rapidly-increasing literacy and education levels, spreading wings of social media, consumers getting easy access to different cultures, foods and practices and urbanisation open up a huge playground for existing as well as new companies to venture into.
Indians, being foodies, look for different tastes, and like to experiment with their platters. They can’t make desired yummy things that can be made at home. This growing phenomenon fuels the growth of convenience and ready-to-eat food items.
What are the challenges faced by the sector?
Probably the biggest challenge faced by the industry today is the lack of suitable infrastructure, especially in such areas as the distribution of frozen food items.
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