Mega Food Parks - Huge opportunities in Food Processing

Huge opportunities in Food processing sectors

The changing demographics, lifestyle patterns, food consumption patterns has increased
the sales of packaged food, canned/ dried processed food, frozen processed food, meal
replacement products, condiments, beverages etc. The current estimated worth of packaged food
industry is 15 bn USD and is expected to touch 30 bn USD by 2015. The annual growth rate of this
sunrise sector is almost 20 percent.

The Indian food processing industry holds tremendous potential to grow, considering the
still nascent levels of processing at present. India, with an arable land of 184 mn hectares is, the
highest producer of milk in the world at 134.5 mn tonnes p.a., second largest producer of fruits (77
mn tones) & vegetables (150 mn tones), third largest producer of food grains (255 mn tones) and
fish and has the largest livestock population. Considering the wide-ranging and large raw material
base that the country offers, along with a consumer base of over 1.25 billion people, the food
industry holds tremendous opportunities for large investments. A study has also highlighted that
India incurs post-harvest fruits and vegetable losses worth over Rs two lakh crore each year
largely owing to the absence of food processing units, modern cold storage facilities and a
callous attitude towards tackling the grave issue of post-harvest losses.
Apart from this the economic slowdown and increasingly jobless nature of growth may force
some 12 mn people in India to join agriculture because of lack of opportunities elsewhere. A report
by ratings agency CRISIL says dwindling focus on labour-intensive manufacturing sectors has
slowed job creation in the economy, adding that the 'demographic dividend' that the country is
banking on to become an economic super power could turn into a 'demographic liability' if
adequate jobs are not created. To mix growth with job creation, the Crisil report has suggested
encouragement to labour-intensive manufacturing industries such as textiles & garments, leather &
footwear, gems & jewellery and food processing, where there is an emerging export opportunity
because of higher wages in China.

The Mega Food Park Scheme (MFPS)

Given the scenario of opportunities and potential ministry of food processing has come up
the Mega Food parks scheme (MFPS). The primary objective of the MFPS is to provide modern
infrastructure facilities for the food processing along the value chain from the farm to the market. It
will include creation of processing infrastructure near the farm, transportation, logistics and
centralized processing centers. The main feature of the Scheme is a cluster based approach. The
scheme will be demand-driven, and will facilitate food processing units to meet environmental and
safety standards.
The expected outcome is increased realization for farmers, creation of high quality
processing infrastructure, reduction in wastage, capacity building of producers and processors and

creation of an efficient supply chain along with significant direct and indirect employment
generation.
Salient Features of the Scheme
The Scheme aims to facilitate the establishment of a strong food processing industry
backed by an efficient supply chain, which would include collection centers, primary processing
centers and cold chain infrastructure. The food processing units, under the Scheme, would be
located at a Central Processing Centre (CPC) with need based common infrastructure required for
processing, packaging, environmental protection systems, quality control labs, trade facilitation
centers, etc.

The extent of land required for establishing the CPC is estimated to be between 50- 100
acres, though the actual requirement of land would depend upon the business plan of investor(s),
which may vary from region to region. CPC would be supported by Primary Processing Centers
(PPC) and Collection Centers (CCs) in identified locations based on a techno-feasibility study,
adequate to meet the raw material requirements of the CPC. The land required for setting up of
PPCs and CCs at various locations would be in addition to land required for setting up the CPC.
It is expected that on an average, each project may have around 30-35 food processing
units with a collective investment of around Rs 250 crores that would eventually lead to an annual
turnover of about Rs 450-500 crores and creation of direct and indirect employment of about
30,000 persons. However, the actual configuration of the project may vary depending upon the
business plan for each Mega Food Park. The aggregate investment in CPC, PPCs and CCs
should be proportionate and commensurate to the size of the total project keeping in view the
economies of scale.
The spirit of the guidelines of the Mega Food Parks Scheme is to facilitate setting up of only
food processing industries. Accordingly, only food processing industries that make food products fit
for human/animal consumption may be permitted to be set up in the Mega Food Parks. Packaging
facilities of food products as ancillary to the food processing industries may also be allotted land in
the Mega Food Parks.

The Scheme shall provide a capital grant at the rate of 50 percent of the eligible project
cost in general areas and at the rate of 75 percent of eligible project cost in difficult and hilly areas
i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified
areas of the States subject to a maximum of Rs.50 crores per project.

MEGA FOOD PARK MODEL: AN ILLUSTRATION

Cleaning, grading, sorting and

packing facilities, dry
warehouses, specialized storage
facilities, pre-cooling
chambers, ripening chambers, reefer
vans, mobile pre-coolers and
collection van etc.

Testing laboratory, cleaning, grading,

sorting and packing facilities, dry
warehouses, specialized storage
facilities, cold chain infrastructure
including reefer vans, packaging
unit, irradiation facilities, steam
sterilization units, steam generating
units, Food incubation cum
development centers

Role of MITCON
In order to ensure smooth implementation of projects at ground level, Ministry has drawn up a
panel of Project Management Consultants (PMC) with experience in preparation of DPRs for large
projects and project implementation. Ministrys empanelled PMCs may be engaged by the SPVs
for preparation of DPRs and for assistance in implementation and the cost of which would be
considered as one of the eligible components of the project.
MITCON is one of the empanelled PMCs with Expertise in the project conceptualization,
Preparation of EOI document / Project Proposals, Technical Presentation, Detailed Project Reports
for getting in approval of various Commercial Horticulture Projects, Integrated Cold Chain, Mega
Food Parks, Food Testing Laboratories, Setting up/Modernization of Abattoirs and food processing
industries all over India. In the past MITCON has done EoIs/DPRs for more than ten Mega Food
Parks Projects. Projects in Maharashtra, Sikkim, Gujarat have got in principle approval and are on
the path of getting final approval. Mega Food Park Projects in Tamil Nadu, Uttar Pradesh, Tripura
has received the final approval and are in execution phase.

MITCON has well experienced team of Civil engineers, Architects, Agriculture experts, Food
technologist, Market Research, Finance and Management, Infrastructure Development, Power,
Energy & Carbon Credits, non conventional energy, environment clearance services, training etc.
for proper conceptualization and implementation of projects. It is associated with the Ministry of
Food Processing Industries, GOI, New Delhi for more than ten years for implementation of all
schemes. Apart from this MITCON is also empanelled with various leading banks/Government
Agencies/Ministries for appraisal of Project Proposals / Reports with Good financial strength and
experience of about three decades in consultancy and training.There is state of the art Network of
offices and manpower all over India to collect relevant data/information as required and
empanelled with other allied Central Government Agencies as follows:

MoFPI (Ministry of Food Processing Industries, GOI, New Delhi)

NIFTEM (National Institute of Food Technology Entrepreneurship and Management)

SFAC (Small Farmers Agri-Business Consortium)

TDB (Technology Development Board)

NMPPB (National Meat & Poultry Processing Board)

MITCON believes the key is relentless execution and give all we have. It would be glad to
associate with the industrys quest for development and positive impact on the sector as whole.
We can take, execute and commence a successful technical association for this sunrise sector.
Our mission is to provide one stop solution for agri and food sectors and to play proactive role in
mentoring, developing sustainable agri and food businesses.

Vijaykumar Chole,
Asst. Vice President
MITCON Consultancy & Engineering Services Ltd.,
Kubera Chambers, Shivajinagar,
Pune - 411 005, Maharashtra (INDIA)
Mobile: +91-7774050683,
Email: vijay.chole@mitconindia.com
Tel.: +91-20-2553 3309 (D) 66289130,
Fax: +91-20-2553 3206
Website: www.mitconindia.com