Food Processing Industry: The food processing industry in India is a sunrise sector that h as gained prominence in recent years. Availability of raw materials, changing lifestyles and relaxation in policies has given a considerable push to the industry’s growth. This sector is among the few that serves as a vital link between the agriculture and industrial segments of the economy. Strengthening this link is ofcritical importance to improve the value of agricultural produce; ensure remunerative prices to farmers and at the same time create favourable demand for Indian agricultural products in the world market. A thrust to the food processing sector implies significant development of the agriculture sector and ensures value addition to it. The Indian food processing industry holds tremendous potential to grow, considering the still nascent levels of processing at present. Though India’s agricultural production base is reasonably strong, wastage of agricultural produce is sizeable. Processing of fruits and vegetables is a low 2%, around 35% in milk, 21% in meat and 6% in poultry products. By international comparison, these levels are significantly low - processing of agriculture produce is around 40% in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in Malaysia. Value addition to agriculture produce in India is just 20%, wastage is estimated to be valued at around US$ 13 bn (Rs 580bn). Soft drinks Industry: The Indian non-alcoholic drinks market was estimated at around US$ 4.43 billion in 2008 and is expected to grow at a compound aggregate growth rate (CAGR) of around 15 per cent during 2009-2012, according to a report published by market research firm RNCOS, titled "Indian Non- Alcoholic Drinks Forecast to 2012". This segment is the 3rd largest in the pa ckaged foods industry, after packed tea and packed biscuits. The aerated soft drinks industry in India comprises over 100 plant s and provides direct and indirect employment to over 125,00 0 employees. It has attracted one of the highest foreign direct investments in the country. Its position is strengthened by strong forward and b ackward linkages with glass, plastic, refrigeration, sugar and the transportation industry. As per the report, the fruit/ vegetable juice ma rket will grow at a CAGR of around 30 per cent in value terms during 2009-2012, followed b y the energy drinks segment which will grow at a CAGR of around 29 per cent during the same period. France's Groupe Danone is merging its distribution operations in India with its probiotic drinks joint venture (JV) Yakult Danone India Pvt Ltd for better synergies. Penetration levels of aerated soft drinks in India are quite low compared to other develop ing and developed markets, which is indicative of the potential the segment holds for further growth.
