FB sector mushrooming by leaps and bounds

New Delhi, Aug 12 (UNI) Country's food and beverages (F&B) segment has taken giant strides and is growing at 8.5 per cent, says a survey.

In the current fiscal of 2007-08, the sector is growing at a rate of 8.5 per cent, with a major contribution made by branded foods that is growing by about 15-20 per cent, according to 'Food&Beverages Survey' conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).

The semi-processed/cooked ready-to-eat products segment recorded a growth of 23 per cent, while the organised branded milk products saw a 20 per cent increase. The ice-cream segment grew by 26 per cent, wine 24 per cent and sugar 20 per cent, survey showed.

The report also said branded flour (atta) saw a 14 per cent growth, with the organised sector bakery items, including bread, cakes, pastry growing by 12 per cent, bread (10 per cent), biscuits (13 per cent), organised/packaged sector biscuits (15 per cent), processed fruits and vegetable juices, pulp sauces and ketchups (17 per cent), chocolates (11 per cent), packaged liquid milk (13 per cent) and milk products (14 per cent).

The sectors which grew marginally were overall bakery items, including bread, cakes and pastry, bread at nine per cent, organised sector bread, branded edible oil, cheese/paneer and chocolates increased by eight per cent, culinary products/snack food (8.5 per cent), fruits and vegetables (6.5 per cent), overall milk and dairy products (8.5 per cent).

Other segment which grew marginally include milk (6.5 per cent), ghee (six per cent), confectionary (6.5 per cent), sugar confectionary/gums (6.5 per cent), health beverages/malted food, spirits/country liquor (nine per cent), tea (1.5 per cent), coffee (7.4 per cent) and edible oil (five per cent).

However, production of edible oils recorded a negative growth of four per cent, the study says.

The survey also projects a higher growth ranging between 8.5- nine per cent during 2007-2008 in almost all the products in the F&B segment.

A package of fiscal incentives provided by various state governments like Himachal Pradesh and Uttaranchal, have further encouraged companies to set up manufacturing facilities in these regions, the study adds.

The 10-year excise and five-year income tax exemption for units located in backward regions under section 80IA have also encouraged many companies to set up new units.

The import of new emerging technologies and machinery in the liberal regime has also helped modernise production of traditional processed food products. There has been a steady process of technology upgradation in the traditional milling industry, while the innovation of scraped surface heat exchangers, membrane-processing has encouraged value addition in milk and dairy products.

UNI