The Indian sector of food and beverages is growing between 23 and 24 percent annually. It is predicted to hit the figure of 3.80 lakh crore in the year 2017, According to a study. The FICCI Grant Thornton research report states that the unorganized sector controls the market, which is expected to shrink significantly over the coming 4 to 5 years. It also noted that the most prominent brands can still take advantage of a great chance to expand their business in this sector.
Still, despite losing ground within five years, the unorganized segment will control 60% of the overall market. “Brand and chains of both Indian and MNC brands are still less penetrated and there exits a large opportunity in this space to create bigger restaurant chains,” stated the report. Currently, the F&B (food and beverages) sector is estimated to be worth about Rs 2.04 1 lakh crore as per the report titled “Unlocking the potential in the food and beverage services sector.”
In addition, it said that more infrastructure and qualified workers are needed to ensure the development of this sector. ACCORDING TO THE REPORT, the F&B sector is afflicted by other issues such as high real estate costs, licenses, multiple taxes, and licenses. It also recommended that the government initiatives to streamline licensing procedures, create an efficient infrastructure, and develop skilled workers would aid in expanding the sector.
“The government recognises the F&B sector’s potential for growth and job creation. Hence, it has been identified as a priority sector in the National Manufacturing Policy and is also amongst the top 25 priority sectors, which are being promoted across the globe to attract investments,” said Department of Industrial Policy & Promotion Joint Secretary Atul Chaturvedi.
Play UnmuteLoaded: 0.00%Fullscreen He stated that F&B is now one of the industries with the highest level of FDI. “Hence, the government is running awareness campaigns through digital and social platforms to attract both domestic and global investments.” Grant Thornton India Partner Vinamra Shastri states, “The Government has been recently focusing on enhancing the food processing infrastructure by promotions of cold chain stores as well as integrated food parks through subsidizing the capital costs. “This won’t only guarantee the proper infrastructure for the establishment of processing facilities to supply high-quality ingredients to the restaurant industry as well as provide an enormous increase in the supply of processed food items and other processed foods, he explained.