India's Ready To Eat Food Essay

2012 words - 8 pages

Introduction
India has made lot of progress in agriculture & food sectors since independence in terms of growth in output, yields and processing. It has gone through a green revolution, a white revolution, a yellow revolution and a blue revolution. Today, India is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. Therefore, Indian Government is providing more infrastructures for this sector. Excise duty is now ZERO% on RTE, 100% tax deduction for the first 10 years for new units. This allows manufactures to down their prices & spreads its flavors to the world. Now the time is to provide better food processing & its marketing infrastructure for Indian industries to e good quality & safest processed food like ready to eat food.
The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) s expected to expand to reach Rs..2,900 crore by 2015, according to an analysis done by Tata Strategic Management Group (TSMG). In its analysis, SMG said the factors contributing to the growth would be changes like cold chain development, disintermediation, streamlining of taxation, economies of scale on e supply side, coupled with increasing disposable incomes, diminishing culinary skills and the need for convenience on the demand side.
Ready to Eat Meals like already cooked or prepared lunch & dinner are relatively new products are now sold through retail general stores in especially made sealed a aluminum laminates. When customer needs to eat, the food item pouch is either put in microwave oven to warm it or keep in heated water for a few minutes and then serve to eat.
Such ready to eat meals have been especially given to soldiers in army of many countries require carrying their rations while on war front or while located far away from their main unit. The market for food is simply huge and as of January 2010 estimated to be Rs 5000 billion annually. It is growing for two main reasons: population growth and improvement in consumers spending ability.
The ready to eat meal industry consists of two categories, frozen ready meals and canned ready meals. The market for ready meals in India increased at a compound annual growth rate ofl3.7% between 2003 and 2008.The canned ready meals category led the ready meals market in India, accounting for a share of 603%.Leading players in Indian ready meals market include ITC Limited, Al Kabeer Group of Companies and Orkla Foods. The ready to eat foods have gained momentum in Urban India where even women are working and there is time crunch to cook. The market for RTE industry is NRIs and bachelors. The Indian food processing industry has changed considerably in recent years to adapt to the demands and lifestyles of domestic consumers, particularly the growing middle ass. This is also due to the rapid expansion of the retail distribution system acing...

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