Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
ON
READY TO EAT FOOD INDUSTRY
SUBMITTED TO:
SUBMITTED BY:
PROF. S. C. REDDY
ANAND ASODIYA
(06)
Director, SKPIMCS
MEHUL KANOJIYA
(37)
MANISH PARMAR
(77)
DHARA THAKKER
(114)
ACKNOWLEDGEMENT
At the very outset of this report with all our due respect and regards we take this
privilege to extend our sincere thanks to all those who helped us during our
project.
We are highly grateful to our director Prof. S. C. Reddy who gave us the
opportunity to carry our project as a part of MRIS course in READY TO EAT
FOOD industry. Indeed this project has really enhanced our knowledge in the
field of READY TO EAT FOOD Industry.
We are also thankful to Prof. Pratima Prakash and our institute SKPIMCS.
Lastly we want to thank all the people who gave their support directly or indirectly
to make this project successful.
EXECUTIVE SUMMARY
We Indians are extremely fussy about the food we eat, and hate to compromise
on taste and quality. So, we like our vegetables with the same taste for years
together, perhaps just like it was in our childhood, which put in other words
means that, for us, theres no substitute for homemade food. But have we ever
given a thought to how much time we spend in cooking? How many toils go
behind the exotic fares that a woman prepares for her family? Innumerable hours
are spent on every mouth-watering dish. Cutting this, chopping that, roasting,
grinding, frying. Etc.! Cooking is indeed a full time occupation. But todays
woman, with so many demands on her time, simply cannot afford to spend a
whole day in the kitchen. At the same time, in no way is she willing to substitute
her ways, for the fear that quality and taste may be compromised.
Now people have discovered the joys of a simpler, faster and fun way of cooking
traditional Indian food. As nuclear families proliferate in urban India, the readyto-eat market is set to grow. Its a food revolution thats been a long time coming.
As double-income nuclear families become the norm in urban India, everyone
who is anyone in the food business has been eyeing the ready-to-eat food sector
with considerable hunger.
Top food companies say the market is currently worth around Rs 50 crore in
India but they confidently predict it will grow to around Rs 200 crore in the next
one or two years. So there is a great future for food companies in India.
TABLE OF CONTENTS
1. INTRODUCTION....1
2. RESEARCH METHODOLOGY.......2
3. INDIAN FOOD INDUSTRY...4
4. COMPANY PROFILE....7
4.1 MTR...7
4.2 ITC-AASHIRWAD........................10
4.3 SATNAM OVERSEAS........................12
4.4 TESTY BITES...................16
5. THE FIRST INTERNATIONAL CONFERENCE IN INDIA ON READYTOEAT FOOD - 2005 ....... ...17
6. PRESS REPORTON RTE FOOD: SEPTEMBER 20, 2003, BUSINESS
STANDARD.............................................................................................19
7. DATA ANALYSIS AND INTERPRETATION...........25
8. SUGGESTIONS..............31
9. CONCLUSION..32
1. INTRODUCTION
In todays competitive world the practical study forms an important part in each
and every professional course. The MBA is a course in which the theoretical
knowledge is backed by the practical study. That study is in the form of different
projects which are undertaken during the MBA course. Here we have done a
project on a READY TO EAT FOOD INDUSTRY as a part of MARKETING
RESEARCH INFORMATION SYSTEM course. The current situation is made
known to the students when they undertake the project. The project gives better
insides into the application part of the theory. The companies in an industry and
their operations can be better known by the students when they analyse the data,
and prepare the project.
This project is on the study of READY TO EAT FOOD market of India. We have
done analysis based on the primary data (which are collected through survey &
personal interview) and secondary data (which are collected from different
sources like internet, magazines, and reports of different Government agencies).
This project also includes the current news on ready to eat food and also
includes the details of the first international conference in India on READY TO
EAT FOOD industry.
2. RESEARCH METHODOLOGY
OBJECTIVES OF PROJECT:
To study the market of Ready to Eat food.
To determine the factors affecting the purchase decision of Ready to Eat
Food.
To understand the consumption pattern of Ready to Eat Food.
To analyse the competition among different brands.
TIME SCOPE OF PROJECT:
As the project is undertaken as a part of MARKETING RESEARCH
INFORMATION SYSTEM subject, the time limit taken to complete the project is
the Two months.
DATA COLLECTION METHOD:
PRIMARY DATA
1. Questionnaire.
2. Personal Interview.
SECONDARY DATA
1. Internet
2. Magazines.
3. Companies Brochure.
SAMPLE SIZE 100
SAMPLING TECHNIQUE Convenience Sampling.
LOCATION FOR SURVEY- Ahmedabad and Gandhinagar
LIMITATIONS IN PROJECT:
As no project is possible without any limitations, our project and survey is
also bounded by some limitations of which few major limitations are as follows:
The project was the part of MRIS Subject and hence the time
The new wave in the food industry is not only about foreign companies arriving
here attracted by the prospective size of the market. It is also about the migration
of the Made in India tag on food products travelling abroad. Indian food brands
and fast moving consumer goods (FMCGs) are now increasingly finding prime
shelf-space in the retail chains of the US and Europe. These include Cobra Beer,
Bikanervala Foods, MTR Foods' ready-to-eat food stuff, ITC's Kitchen of India
and Satnam Overseas' Basmati rice.
In a bid to boost the food sector, the government is working on agrizones and the
concept of mega food parks. One indication of the importance that the sector
received is the hiking of the present outlay for the sector from Rs 85 crore
(US$19.5 million) in 2004-05 to Rs 180 crore (US$41.35 million) the next year,
more than twice the earlier amount.
The government is also considering investing Rs 100 crore (US$22.97 million) in
at least 10 mega food parks in the country besides working towards offering 100
per cent foreign direct investment and income tax benefits in the sector.
4 COMPANY PROFILE:
4.1 MTR
MTR Foods Limited is amongst the top five processed food manufacturers in
India. We manufacture, market and export a wide range of packaged foods to
global markets that include USA, UK, Australia, New Zealand, Malaysia,
Singapore, UAE and Oman.
Starting with the legendary MTR restaurant in Bangalore, Indias silicon valley,
we now offer ''complete meal solutions'. Our wide range of products include
ready-to-eat curries and rice, ready-to-cook gravies, frozen foods, ice cream,
instant snack and dessert mixes, spices and a variety of accompaniments like
pickles and papads.
Our deep understanding of culinary expectations and needs has resulted in many
new and innovative products. Our investments in infrastructure and technology
ensure that we can scale rapidly and bring these to market. Today, consumers
across the globe count on us to bring them all-natural, wholesome and delicious
food that is also convenient and no-fuss.
We have also expanded our retail presence significantly: contemporary 'Namma
MTR' and MTR kiosks now serve delighted consumers across Bangalore and
Chennai.
QUALITY POLICY:
We are ISO 9002 and HACCP certified.
At MTR, quality is a way of life. Hazard Analysis and Critical Control Point or
HACCP, developed by the Codex Alimentarius Commission, is a global food
safety standard. We have successfully met the stringent requirements for this
certification.
Our facilities are equipped with the latest systems. We adhere to international
standards across all operations: from sourcing the finest ingredients to
processing and packing using cutting-edge technology. Each MTR product
carries this assurance of quality and meets the high expectations our consumers
have from us.
FEATURES OF MTRS FOOD PRODUCTS:
What makes MTR a trusted, household name?
Our products are 100% natural have no preservatives and use only the
finest, most authentic ingredients.
We use the latest technology to preserve the quality and freshness of our
food. Our use of technology from the Defense Food Research Laboratory
for our Ready to Eat products has won us the President's award.
CURRIES
RICE ITEMS
SOUPS
June
2003.
The
range
now
The need of frontline military soldiers for light but nutritious food, with an assured
long shelf life was the impulse and the inspiration for the development and finetuning of the retorting process.
Retorting technology was used by the US in its Apollo Space missions. Today it
is the mainstay of US military rations. Retorting is also widely used in packaged
foods in Japan and Europe.
The efficacy and effectiveness of the retorting process depends on the
sterilisation process and the retorting pouch.
STERILISATION PROCESS
The sterilisation process ensures the stability of the Ready-to-Eat foods in retort
pouches, on the shelf and at room temperature. The application of sterilisation
technology completely destroys all potentially harmful micro-organisms, thereby
making sure that the food product has a very long shelf life. However, in the
current commercial context, the shelf life is limited to one year.
RETORT POUCHES
Retort pouches are flexible packages made from multi-layered plastic films, with
or without aluminum foil as one of the layers. Their most important feature is that
they are made of heat-resistant plastics, unlike the usual flexible pouches. This
makes the retort pouches uniquely suitable for the processing of their food
contents at temperatures around 120 degrees Celsius. That is the kind of
ambient temperature prevalent in the thermal sterilisation of foods.
The 3-ply laminate consisting of PET/ Al oil / PP is the most common material
used in retort pouches and is the only one used in India. ITC uses 4-layered
pouches. The use of PET or polyester as the outer layer gives the required
strength to the pouch. The aluminum foil serves as a barrier layer ensuring a
shelf life of more than one year. The Nylon layer provides strength to the pouch,
reassuring additional shelf life. The innermost layer of Polypropylene provides
the critical seal integrity, flexibility, strength and taste and odour compatibility with
a variety of food products.
Aashirvaad ReadyMeals' is currently available across all major cities like Delhi,
Mumbai, Kolkata, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Nagpur,
Patna, Guwahati, and Vishakhapatnam. All grocery stores selling ready-to-eat
products stock Aashirvaad ReadyMeals.
sustainable development.
To harvest natures finest products, process them using the best technology and
make them available across the globe.
The mission encompasses the three core virtues that drive the company :
High-quality products
The finest technology
Global availability
NETWORK OF SATNAM
A quality product has little value if it does not reach its consumer. It is with this in
mind Satnam Overseas has developed an extensive distribution network that
covers not only India, but also a significant chunk of the international market.
Over the years, Satnam Overseas has emerged as a key player in the global
market of Indian agro products. The company is recognised as a leading supplier
of premium quality Basmati rice. In the last few years, the company has made
exceptional efforts to encourage sale of basmati rice under its flagship Kohinoor
in the overseas market. And, we have met with considerable success on this
front.
We have now penetrated global frontiers and established ourselves as a leading
player in the Basmati rice market globally. Today, Kohinoor, is visible in the
retail counters in a number of countries like U.S.A., U.K., Canada, France, Saudi
Arabia, Kuwait, United Arab Emirates, etc.
In India, the company has more than a hundred distributors, 450 stockists and
over 2,00,000 retailers, giving it a reach that is unrivalled in the Indian market.
THE US OPERATION
S.O.L Inc, the companys fully owned subsidiary, is based in New Jersey and
overlooks the needs of the US and Canadian markets.
THE UK OPERATION
Indo European Foods Limited, The company's fully owned subsidiary, is
headquartered in London and looks after the European market. The company is
setting up a rice processing mill at felixtowe, U.K., Which is going to be in
commercial production by first week of July.
THE MIDDLE EAST OPERATION
Another joint venture company, Rich Rise Raisers Factory LLC, operates from
Dubai and caters to the needs of the markets in the Middle East. As a result, no
matter where you are, there is a fair chance that you will be able to enjoy quality
products from Satnam Overseas.
RTE products exported from India are mostly consumed in UK, Europe, USA,
and Arab countries. With the advanced food preservation technology the
chances of preserving food for longer time is increasing day by day. Still the stuff
inside the ready-to-eat packs remain nutritious and hygiene for a certain period
only. So it is highly essential to enhance the quality to compete in the global
market. Though we produce better quality food products, we fail to compete in
the global market due to improper packaging as per international norms. Quality
is of paramount importance for the growth of the RTE foods business in India.
Poor hygiene in the preparation and sale of street foods is a continuing problem:
Food quality improvement must begin at farm level and must be regarded as an
indispensable element of the global approach to improving the post-harvest
system.
Though the demand for the ready-to-eat products is increasing in the global
market, the supply is still not satisfactory. Just to given an example, there are
more than 500 units in the City of London, which are into ready to eat foods.
Exports as well as the domestic market offer a vast scope for the Indian
producers to excel in this sector. The success of ready-to-eat is dominated by the
fact that the market is decades away from maturity and therefore can look
forward to continued strong growth over a long period of time.
The 285 gm pouches called the Aashirvaad range sell for between Rs 35
and Rs 40, putting them within reach of middle-class buyers. Says Ravi Naware,
CEO, ITC Foods, "Aashirvaad will now be the ready-to-eat solution for the timepressed family."
ITC is hoping to serve itself big helpings with its new business. The Aashirvaad
ready-cooked dishes have already been launched in five cities Mumbai, Pune,
Hyderabad, Chennai and Kolkata.
In the next two months, the products will also be available on shop shelves in
Delhi and Bangalore. Naware believes his two brands have already captured
between 15 per cent and 20 per cent of the ready-to-eat market.
Whats more, ITC isnt stopping here. By the end of this financial year, another
five flavours will be added to the Aashirvaad bouquet.
ITC already has two plants churning out products in Bangalore and Delhi and
Naware is scouting for locations to put up a third one.
But ITC doesnt have the kitchen to itself not by a long shot. MTR foods,
arguably the pioneer in the segment, is in no mood to relinquish the leadership
position to the FMCG behemoth.
S Suresh, COO, MTR points out that it has a huge menu card with 15 curries and
seven south Indian specialities. Its also launching nine rice-based items like
lemon rice and rajma chawal.
MTR believes it is the largest in the field with over 70 per cent market share and
it isnt cowed by ITCs distribution muscle.
Says Suresh: "We are already present across 60 cities in India, and by 2005
hope to control around 35 per cent of the Rs 200 crore market."
But MTR also has greater ambitions and hopes to make it to dining tables around
the world. It has sales and distributions teams in North America, Australia, West
Asia and South East Asia.
At another end of the country theres Satnam Overseas, one of Indias largest
exporters of basmati rice under the flagship Kohinoor brand which is also hoping
to make a big meal from the ready-to-eat business.
It has introduced heat-and-eat curries and lentils with a distinctly north Indian
flavour, including Peshawari dal, Kashmiri rajma, and Amritsari chole. Also
coming from the kitchen are other northern specialities like sarson ka saag and
aloo palak. Research is underway to develop ready-to-eat paneer curries and
pav bhaji very soon.
"Each of these preparations follows traditional recipes," says general manager,
Rajesh Trikha.
"Customers just need to heat for two-to-three minutes in a microwave or boiling
water and eat." A single pack priced at Rs 46, is meant to serve upto three
persons.
Satnams USP is its regional appeal. "Punjabi cuisine like Punjabi music is a rage
in the rest of the country as well as overseas," says Trikha, "and we want to
serve the flavour of North India, as authentically as possible, from our plant at
Murthal in Haryana."
How big is the ready-to-eat market and is it poised for a quantum leap? Trikha
believes the market is poised for an explosive jump and that it will triple in the
next one year.
Says Trikha: "According to our internal estimates, the domestic market for readyto-eats is Rs 50 crore plus and is expected to grow three times by the end of
2004."
Whats more, Trikha is firmly convinced that around Rs 25 crore worth of readyto-eat-curries are already selling. Thats likely to touch around Rs 100 crore by
2004 according to him.
Naware is also counting on giant-sized growth. His expectations arent very
different from Trikhas. He believes the market will touch Rs 200 crore by around
2005 and hes hoping to garner as much as 50 percent marketshare by
spreading himself across 50 cities.
Naware is putting together a big-budget print and television campaign to promote
his dishes which is being handled by Grey Worldwide. The company is also
organising sampling sessions to gauge customer feedback.
There are smaller companies too that are hoping to grab a chunk of the action.
Pune based Tasty Bites Eatables Limited [TBEL] has been exporting for years
and is now making an ambitious thrust into the Indian market.
Tasty Bites started operations back in 1987 but it didnt make much headway and
the products were withdrawn a year later.
"People were sceptical back then and consequently our products were nonstarters," says Ravi Nigam, president, Tasty Bites.
20%
25%
Joint
Nuclear
Live Alone
55%
locations for our survey were Ahmedabad and Gandhinagar. Generally most of
the people in Gujarat live in nuclear family. Very few people, whose native are
not Ahmedabad & Gandhinagar and doing job or business here, live alone.
2) Do you use or consume READY TO EAT food products?
[ ] Yes
[ ] No
Users
35%
Yes
No
65%
from the above pie chart that around 65% people do not use Ready to eat food
and 35% people do not use or consume it. There are many reasons why very few
people consukme RTE food. They might be less awareness, less reliability,
higher price or no requirement of such products.
FOLLOWING FOUR QUESTIONS ARE FOR USERS OR BUYERS OF READY
TO EAT FOOD
3) Why do you consume ready to eat food products?
[ ] Need.
[ ] Taste.
[ ] Reliability.
[ ] Price.
[ ] Freshness.
[ ] Quality.
Reason for Buying
5%
0%
Need
10%
Taste
10%
Reliability
Price
12%
63%
Freshness
Quality
We can see from the pie chart that one of the most important reason to
purchase RTE food is the requirement. If a person lives alone and do not get the
enough time to cook food than and than he or she will go for it. And most of the
users come under this category. They need the ready to eat food products. And
some of the people like the taste of it that is why they use it.
4) Which companys READY TO EAT food product do you consume?
[ ] ITC.
[ ] MTR.
[ ] Satnam Overseas.
[ ] Testy Bites.
Preferred Companis
3%
1%
20%
ITC
MTR
Satnam Overseas
76%
Testy Bites
Most of the users of RTE food purchase ITCs AASHIRWAD (RTE food brand).
And second preference is given to MTR. As ITC is a Famous and trustworthy
company people prefer to purchase their products. And as other companies like
MTR, SATNAM OVERSEAS and TASTY BITES have not become aggressive in
Gujarat, people are not aware about them. They are also expanding their market.
c) How many times do you consume READY TO EAT food in a month?
[ ] 1-5 times
[ ] 5-10 times
[ ] 10-15 times
[ ] More than 15 times
Buying period
5%
15%
0%
1-5 times
5-10 times
10-15 times
80%
>15 times
Most of the users consume RTE food for 1-5 times in a month. It means today
also many people like to eat home made food and restaurants food.
d) How do you find the product?
[ ] Very good
[ ] Good
[ ] Average
[ ] Bad
[ ] Very bad
Quality
7%
3%
25%
Very Good
Good
Average
35%
Bad
30%
Very Bad
Out of 100 users, 35 users rate the RTE products average. It means if the
companies improve the quality and taste, the market for the RTE can expand or
increase.
5%
20%
Taste
Reliability
54%
7%
6%
8%
Price
Freshness
Quality
Generally in India or in Gujarat, most of the people dont need to purchase RTE
food. They dont require it that is why they do not purchase it. And 20% of the
people believe that they are not fresh so they do not like to eat.
b) Will you consume READY TO EAT FOOD products in the future, if the
problems are solved?
[ ] Yes
[ ] No
[ ] Cant say
Willing To Buy
18%
Yes
No
52%
30%
Can't Say
when we ask respondents that if your particular problems regarding RTE food
like high price, poor quality etc., will you purchase it? And most of them were
agreed to purchase it.
Finally it can be said from above analysis that people who are unmarried, who
live alone and the family in which both husband & wife do the job consume
Ready to Eat food. Still RTE food makers need to do lot promotion to make
people aware about their products and to penetrate the market they also have to
reduce the price of their product.
8. SUGGESTIONS
Food companies concentrate more on nuclear family but along with they
should also concentrate on people who live alone.
Though the demand for the ready-to-eat products is increasing in the global
market, the supply is still not satisfactory. So food companies should
increase their production capacity.
Quality is of paramount importance for the growth of the RTE foods business
in India. So each food company should concentrate on quality improvement
of RTE food.
Packaging is also important for RTE food to keep the food hygienic. Food
companies must follow the international norms for packaging.
Food companies should explore the new avenues for marketing and
distribution of RTE food.
CONCLUSION
With the income level rising, demand for milk, meat or fish, fruits and vegetables
is also increasing in India. With more urbanization, Indian families also consume
more processed foods, more ready-to-eat foods, etc. Asian Americans, now
numbering over 10 million along with the other 13 million persons of India origin
spread all over the world are a huge potential market for the RTE Foods out of
India. This creates a scope for the producers to come out with a long range of
dishes including the usual meals. India had been at the forefront for variety of
dishes both in domestic and global market. Today the ready-to-eat products
produced from India are mostly on Basmati rice Pulao, Biryani, Dal, Channa,
Rajma, Spicy Vegetable Curry, Mushroom, Paneer, Chicken, Broccoli, Sweets
and many more South Indian dishes.
Food companies should increase the promotion of RTE food to create awareness
among people about the concept of RTE food and convince customers about the
misconception about the added preservatives in RTE food.
There is great opportunity for Indian food companies to capture Indian food
market as well as food market of other countries. Top food companies say the
market is currently worth around Rs 50 crore in India but they confidently predict
it will grow to around Rs 200 crore in the next one or two years. So there is a
great future for food companies of India.
ANNEXTURES
QUESTIONNAIRE
Respected Sir/Madam,
We, the students of S. K. PATEL INSTITUTE OF MGMT. & COMPUTER
STUDIES, GANDHINAGAR are conducting a research on READY TO EAT FOOD
market. We request you to provide information required in the questionnaire.
___________________________________________________________________
1. In which kind of family do you live?
[ ] Joint family
[ ] Nuclear family
[ ] Live alone
2.
[
[
[
[
[
[
] Need.
] Taste.
] Reliability.
] Price.
] Freshness.
] Quality.
PERSONAL DETAILS:
Name: _______________________________________________________
Age: ______________Sex: ___________ Occupation: _________________
Income: _______________________ Marital status: ___________________
Thank You
BIBLIOGRAPHY
WEBSITES:
www.indiainfoline.com
www.agriwatch.com
www.satnamoverseas.com
www.itcportel.com
MAGAZINES:
ICFAI journal of Marketing Management
PITCH
NEWSPAPERS:
Economics TIMES
Business Standard