Q: 1 What different environmental factors could you identify in the given

case, that have an impact on the Indian Processing Industry?

Ans: The various environmental factors that have an impact on the Indian Food
Processing Industry are as under:
Skill: Traditional methods of farming. We are lacking in trained manpower. The
skilled labour impacts the environment as they have exposure to low scale
operations. Limitations in Retail Management purchase skill and management of
large operations. Skills required for modern retail formats relatively unknown.
Technology: No/low use of technology Low levels of mechanization. Low use of
hybrids, biotechnology. Very low investment in storage & handling technology
few upcoming commodity exchanges. Outdated technology due to small scale
operations Low capacity units Use of technology is low such as Bar coding, supply
chain linkages and use of IT is low. Low availability of new reliable and better
accuracy instruments and equipments. Inadequate automation w.r.t. information
management
Regulations: Corporates not allowed in non-plantation farming No enforceability
in contract farming Procurement intervention by Govt. agencies MSP policy
Restriction on storage and movement Favorable to small scale investments Scope
for large processors limited Foreign Direct Investment not allowed Land cost high
due to inaction on land development. Inadequately developed linkages between
R&D labs and industry.
Capital: Lack of private initiative & weak private public partnership provisions.
Due to lack of capital, there is an inadequate infrastructure for distribution and
preservation of the end product. If a firm is not having proper facility of cold
storage for the end product the shelf life of the product will be reduced which will
cause heavy losses to the firm.
Foreign Competition: Due to the emergence of branded quick service restaurants
markets in India like the Dominos, Pizza Hut, Baskin Robbins, KFC, Taco Bell
etc., people are attracted towards it ignoring our traditional foods. This is also the
main factor that affects the Indian Food Processing Industry.
Q: 2 Based on the case; would you like to start a new venture in the Indian
Food Processing Industry? Justify your answer.
Ans: As we know that, India is a large country and caters different people having
different tastes. So in order to fulfill the needs of all the people different companies
like Amul, Kwality, Rei Agro, KRBL, Parle Agro, Hatsun Agro, Heritage Foods,
Kohinoor Foods, LT Foods, MTR work on this. There are also several MNCs
which are also responsible to cater this need. As it is not possible to deliver the
fresh products to everyone, so these companies process these foods items so in
order to increase the shelf life of the products. These processed food is economical
and can last upto several days. Food Processing includes process under which any
raw product of agriculture, dairy, animal husbandry, meat, poultry or fishing is
transformed through a process (involving employees, power, machines or money)
in such a way that its original physical properties undergo a change and the
transformed product has commercial value and is suitable for human and animal
consumption. It also includes the process of value addition to produce products
through methods such as preservation, addition of food additives, drying etc. with a
view to preserve food substances in an effective manner, enhance their shelf life
and quality.
The Food Processing Industry (FPI) is of enormous significance as it provides vital
linkages and synergies that it promotes between the two pillars of the economy, i.e.
agriculture and industry.
India is the world's second largest producer of fruits & vegetables after China but
hardly 2% of the produce is processes
Food processing industry in India can be segmented as follows
 Cereal/ pulse milling
 Fruit & vegetable processing
 Milk & milk products
 Beverages like coffee, tea & cocoa
 Fish, poultry, eggs & products
 Meat & meat products
 Aerated waters/soft drinks 8. Beer/alcoholic beverages
 Bread, biscuits & other bakery products
 Edible oil/fats.
 Confectioneries
 Breakfast cereals, malt protein, weaning, extruded food products
As discussed above, in India there is a wide range of processed food so according
to me, I should continue to expand the current food market by improving the
supply chain of these products. also If I have to add some products in the product
line, I will introduce sea food like shrimps, prawns, crabs, etc. as these are
popular in south of the India but are not available in other parts of the India, as
these are gaining popularity amongst all other communities so this step I would
have taken.
Moreover, due to increased trend of fitness in the world especially in India I
would like to introduce various ready to eat to protein bars with low cost so that it
can be used by all communities who are interested in the fitness. Also production
of roasted edible seeds like pumpkin seeds, flax seed, chia seed, prunes, etc. can
also be introduced. Also ready to eat muffins, cupcakes can also be introduced.
At last, in India the trend of going vegan is new. So I would have launched
products which are gluten free and free of any diary substitute. It will contain
vegan protein bars, Pea protein powder, vegan cup cakes, soya cheese & milk.
Vegan community is a new trend so launching products in this range would be a
great step for increasing profits of the company.