Why Choose India?
India has a vast growth in frozen food consumption after China. The cause of the increase in consumption is the work life of consumers. Based on the population , the age group shows the majority is in the working stage , hence due to buying power consumers seek on convenience overall. The PEST factors have been implemented for further analysis.
• Political factors
A survey by The Associated Chambers of Commerce and Industry of India in 2015 predicted that India’s packaged food market would witness a quantum jump to $50 billion by 2017The food processing industry one of the largest industries in India is widely recognized as a ‘sunrise industry’.
As we consider foreign direct investments into the country, the government has permitted FDI for direct trading of food products. According to the Department of Industrial Policies and Promotion (DIPP) the food processing industry has received around US$7.47 billion of FDI in the period April 2000 to December 2016.
• Economic factors
India having huge potential for uplifting the agricultural economy, creation of large scale processed food manufacturing and food chain facilities, and the resultant generation of employment and export earnings.
Based on tax policies the government has provided capital subsidies, reduced customs and excise duties, which will prove and advantageous position towards countries entering the Indian market. Overall the government stability shows a positive effect on frozen goods entering the market.
• Socio cultural factors
Rapid transformation in the lifestyle of Indians, mostly living in Urban areas have resulted to an increase in demand for processed food As of 2018 the rate of urban population has increased to 34% and the annual rate change keeps changing 2.37% the population of the working crowd rate shows the highest rate. The increasing rate of the women workforce.
and the resultant time-paucity, along with the increasing at home socializing, the preference for nuclear families, or that of young professionals living alone, the growing acceptance of Western food, and the need for on-the-move freshly-cooked foods which results to a higher tendency of acquiring processed food instead of home cooked food.
Based on the Indian culture been Hindu as their main religious belief non-vegetarian, poultry, wheat (rice) dominates the retail consumer portion of the frozen food products in the Indian market. Today frozen food processing has enabled the processed poultry meat industry to grow first in the food service sector by supplying to all QSRs, army and then into the Retail. “Suguna has created its chain of franchised retail outlets “Suguna Daily Fressh” which sell frozen products. Similarly there are outlets such as Republic of Chicken from Al-Chemist and Venky’s express from other poultry majors”.
• Technological factors
The Indian food and grocery market is the world’s sixth largest, with retail contributing to 70 percent of the total sales. On average, Indians spend 31 percent of their total earnings on food and grocery. In contrast, consumers in the US spend only 9 percent, while in Brazil and China, the expenditure on food is 17 percent and 25 percent, respectively.
India has agriculture at the highest work occupation, hence challenges faced in India as follows;
Poor supply chain leakages in India results to high wastage cists, due to seasonality, perishability and variability to produce. The export related infrastructure for agri-produce is grossly inadequate. More than 30 percent of the produce from the fields gets spoilt due to poor post-harvesting facilities and lack of adequate storage infrastructure. The agricultural workforce is inadequately skilled across different levels of food processing. Due to these occurrences another country entering to India will set up the vast technology, which will increase the employment rate, build up infrastructure facilities, accumulate the wastage of goods, and a higher knowledge of processing food methods capability of formulating the just – in time process. As labour force too is cheaper the re-entering of another market to Indian will have a positive advantage