#1Indian Food Processing sector India - Japan: Partners in Transformation#2INDIA - SECTOR OVERVIEW India Ranks Milk Production 1st Livestock Population Millets Production Fish, Rice, Wheat, Cereals 2nd Fruits & Vegetables Total Food Production Ready Infrastructure 19 operational Mega Food Parks* Fazlika, Punjab Aurangabad & Maharasht Una, Himachal Pradesh Kashipur & Haridwar, Uttarakhand Nalbari, Assam Khargaon, Madhya Pradesh Jangipur West Bengal 8,038 cold storage facilities Tumkur, Karnataka 289 approved cold chain projects* Rayagada, Odisha Chittoor & West Godavari, Andhra Pradesh 127 Agro Climatic Zones West Wipura, Tripura 200.9 Mn Ha Gross Cropped Area Operational Mega Food Parks 37 Mega Food Parks USD 35.3 Bn Exports 2 * Under MoFPI assistance#3OPPORTUNITIES Level of Processing Market Drivers Fruits & Poultry Marine Milk Vegetables ☐ 6% 8% 35% 2% Ancillary Opportunities Technology and equipment R&D and skill development Export Hub ■ Supply Side Advantage Strong Domestic Demands ■ Rise in disposable income ■ Convenience seeking consumer behavior Infrastructure development Packaging material, machinery 3#4POTENTIAL INVESTMENT OPPORTUNITIES FOR JAPAN ԿԱՆ Japan: Largest consumer for tuna fish globally Marine & Seafood 3rd largest consumer for seafood globally Shrimp, tuna, salmon, and squid are the top imports India: 。 2nd largest producer of fisheries in the world ☐ Estimated production for Tiger Shrimp, L Vannamei & ▪ Scampi: 6,90,001 MT Total exports from India in 2018-19: 13.92 Lakhs MT worth USD 6.73 Bn Marine export from India to Japan USD 423.27 Mn (2018-19) Investment Areas: Fishing harbors/landing centers Value added items such as ready-to-cook, ready-to-eat, canned and frozen goods- High demand of good quality tuna & tuna value added products in Japan. Seaweed processing Brackish water farming: brackish water land is on a rise in India Technological solutions for reefer vehicles with- o advanced features such as real time tracking o vehicles that can be integrated with rail wagons o vehicles enables with natural refrigeration (using Co2)#5POTENTIAL INVESTMENT OPPORTUNITIES FOR JAPAN Japan: 。 3rd largest packaged food market globally Rice, Pasta and Noodles 。 One of the major agricultural products produced in Japan includes rice ■ India: Indian Rice, Pasta and Noodles market growing at 11% CAGR 。 Expected to be at INR 773.9 Bn by 2023 O India's RTE Segment is growing at a CAGR of 16% and is expected to reach USD 647 Mn by 2023 Investment Areas: New products like Ready to eat meal, frozen noodles etc.- Frozen noodle dishes, okonomiyaki (a Japanese-style pancake with meat and vegetables), and cooked rice dishes from Japan can be brought into India Collaboration in cold chain solutions for storage of key raw material like grains, vegetables etc. for pasta & noodles processing firms Ready to eat segment offers a $2 Bn opportunity over the next 5 years LO 5#6POTENTIAL INVESTMENT OPPORTUNITIES FOR JAPAN Poultry Sector Japan: Among largest importer of poultry products Majorly imports large quantities of chilled and frozen poultry meat, which creates vast export opportunities for India ■ India: 2nd largest poultry market globally 。 Exported USD 15.3 Million worth of poultry products to Japan in F.Y 2018-19. 。 Major export destination- Oman, Maldives, Japan Investment Areas: Novel meat processing technologies Meat traceability technology Advanced food testing labs Value added products manufacturing Cold chain reefer vehicle and storage technology with real time microbial load & temperature tracing Collaboration in terms of waste management and disease diagnosis in addition to egg quality 6#7INVESTMENT INTEREST FROM JAPAN NEW INVESTORS OYC Oriental Yeast India Pvt. Ltd. INDIA EXISTING INVESTORS Yakult イセ食品株式会社 NISSAN ISE FOODS, INC. 亀田製菓 Mitsubishi Corporation Kameda Seika Co. Limited 自然を、おいしく、楽しく。 ⚫ KAGOME NISSIN I#8GOVERNMENT INITIATIVES & SUPPORT Liberal FDI Policy 100% FDI permitted through automatic route for food processing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and / or produced in India Incentives USD 280 Mn fund under NABARD for food parks and units therein Income tax deduction on incurred capex for eligible food processing units FME Scheme: INR 10,000 crores scheme for formalization of Micro Food Enterprises for the unorganized sector. It's based on cluster approach and will focus on perishable Pradhan Mantri Kisan SAMPADA Yojana Ministry of Food Processing Industries (MoFPI) has been implementing PMKSY for creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet Mega Food Parks Infrastructure for Agro-Processing clusters Integrated Cold Chain and Value Addition Infrastructure Creation / expansion of food processing & preservation capacities Creation of backward and forward linkages Operation Greens (TOP to TOTAL) Food Safety and Quality Assurance Infrastructure Human Resources and Institutions 8#9MEGA FOOD PARK- HUB & SPOKE MODEL CC CC сс Farmer Groups Self Help Groups Farmers CC CC сс CC CC DD CC aQ PPC PPC PPC 1 2 3 Value added Products and exports Domestic sales Mega Food Park CPC Collection Centres (CC): Aggregation Points Primary Processing Centre (PPC): Pre-cooling, Grading & Sorting, waxing, packing, Temporary storage. Supply to CPC or direct market Central Processing Centre (CPC): Core, Basic Enabling, Non-core infrastructure, SDF sheds, Processing units Fresh Products Retail sales Domestic#10COLD CHAIN 8,038 cold storage facilities-36.77 MMT capacity storage of 75% of the total cold capacity used for storage horticulture crops including potato More than 63% of the cold storage facilities are in UP, Punjab, Gujarat, Maharashtra, and West Bengal (majorly for potato) Glis 10. Ownership of Cold storage in the country: - Private sector: 95% - Cooperatives: 3% - Public Sector Undertakings: 2% Punjab 6.2 tar Pradesh Top 5 states in terms of total installed capacity (%) West Bengal 16.14 Type of Infrastructure Infrastructure Requirement Infrastructure created Andhra Pradesh Pack-house 70,080 nos. 249 nos. 5.07 Cold Storage (Bulk) Cold Storage (Hub) Reefer Vehicles Ripening Chamber 34.2 MT 0.94 MT 61,826 nos. 9,131 nos. 31.8 MT 9,000 nos. 812 nos. Source: NCCD, PIB, MOFPI, FnB news#11MOFPI ASSISTED MFP & COLD CHAIN INFRASTRUCTURE Mega Food Parks Marine & Fisheries Sector: Godavri Mega Aqua Food Park Pvt Ltd, West Godavri, Andra Pradesh Kerala State Industrial Development Corporation Limited, Alappuzha, Kerala ■ Sea Food Park Deras, Bhubaneswar, Odisha Poultry Sector: RFK Greens Food Park Pvt. Ltd, Pulwama, J&K Cold Chain Projects 31 Projects under Marine & Fisheries Sector- Andhra Pradesh: 9 Andaman & Nicobar: 1 Maharashtra: 5 Nagaland: 1 Tamil-Nadu:2 Karnataka: 2 Kerala: 2 Mizoram: 2 Odisha: 3 West Bengal: 4 6 Projects under Poultry Sector- Maharashtra: 3 Telangana: 2 Tamil-Nadu:1 TORTE Food Products: Integrated Food Parks Pvt Ltd, Karnataka Greentech Mega Food Parks Pvt Ltd, Rajasthan 1 Project under RTE Foods Sector- West Bengal: 1 11#12INVESTMENT FACILITATION INITIATIVES Empowered Group of Secretaries (EGOS) Project Development Cells (PDCs) Investors Portal Investor Facilitation Desk Objectives: Bring synergies and ensure timely from clearances departments and Ministries different Attract increased investments into India and provide investment support and facilitation to global investors & ✰ Facilitate investments of top investors in a targeted manner and to usher policy stability consistency in investment environment the overall Objectives: Creation of investible projects for adoption/investment by investors * Identification of issues that need to be resolved in order to attract and finalize the investments ✰ Put forth industry issues before the Empowered Group of Secretaries for speedy resolution Ministry of Food Processing Industries has set up - Nivesh Bandhu Portal (Investors Portal of MoFPI) to disseminate information government policies and incentives, market scenario etc. Investor Facilitation Desk at Invest India, the National Investment Promotion & Facilitation Agency of the Government of India, for hand- holding all investment interests in structured manner 12#13THANK YOU 13