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F&B industry poised for significant growth

NEW DELHI — India's food and beverages (F&B) industry is likely to touch Rs4,660 billion (about $110 billion) with a growth rate of nine per cent by March 2008, according to a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).

The segments that have indicated high growth potential of 10-20 per cent in the survey are branded flour, bakery items, biscuits, fruit juices, sauces, chocolates, beer, butter, country liquor, branded milk products and malted food among others.

According to FICCI, the main reasons for the exponential growth are positive developments based on the government's liberal policy measures and other such initiatives that have contributed to a major extent for the development of the industry.

Moreover, socio-economic factors such as the increasing purchasing power of the middle class coupled with a changing lifestyle pattern have played a major role in altering the consumers' mindset and preferences.

FICCI also said recent government initiatives aimed at raising farmers' income are also expected to act as a catalyst for a high growth of the industry. However, the survey has also highlighted certain problem areas and the industry's pending demand before the government to solve them.