FDI, FII, Mergers and Acquisitions, Joint Ventures and Domestic Investments
Posted by :
BAZEEGAR
Private investment has been one of the key drivers for growth of the Indian food industry. The `India Food Report 2008`, reveals that the total amount of investments in the food processing sector in the pipeline for the next three years is about US$ 23 billion.
• Texas Chicken, the chicken fast-food brand of the US-based Church`s Chicken, has already opened its first outlet in Hyderabad and plans to open at least 300 outlets in India over the next 10 years.
• The world`s third largest pizza chain, Papa John`s, plans to open 100 outlets in different parts of the country with an investment of US$ 51 million.
• Beverage and soft drink giant Coca Cola India plans to invest US$ 250 million in India over the next three years.
• Fast-food chain McDonald`s is pumping in US$83.4 million on increasing its footprint in India
• On the domestic front, RJ Corp-owned Devyani Food Industries has acquired 100per cent stake in ice-cream venture Cream Bell, valued at approximately US$ 92 million.
• A total of US$ 16.9 million has been invested in seven upcoming wineries in Maharashtra. The state now has 58 wineries with the total investment adding up to around US$ 68.5 million.
• ITC Limited plans an investment of around US$ 68 million to develop a new, integrated food processing plant in West Bengal.
• The SRS Group, one of India`s leading real estate developers, has announced its plan to invest US$ 31.3 million, aimed at expanding its chain of SRS 7Dayz Food Courts and SRS Dazzle Restrobars across northern India.
• Mumbai-based Jumbo King Foods has chalked up plans with a US$15.4 million investment over the next three-year period.
• Fruit drinks concentrate maker Rasna is looking to form joint ventures with companies in former Soviet countries (CIS) and African nations for increasing its global footprint.
A dominant trend of the recent times has been private equity (PE) firms warming up to investing in Indian restaurants.
• PE firm Jacob Ballas has picked up 21.5 per cent stake in Devyani International for US$ 61.5 million, valuing the firm at approximately US$ 287 million.
• Taking the trend further, another private equity firm, New Silk Route (NSR), is in advanced talks with the Dodsal group, one of the two franchisees of Yum! Brands-owned Pizza Hut and KFC, to pick up 30-40 per cent stake in the company.
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Sustained by high agricultural output, international demand and a strong domestic market, the Indian food industry offers ample scope for large investments in processing technologies, skills and equipment, packaging, refrigeration of frozen food and thermo processing.
Currently, six per cent of the country`s fruit and vegetable produce is processed and India`s share of the global market stands close to 0.03 per cent. While the size of the global processed-food market is estimated at US$ 3.2 trillion and nearly 80 per cent of agricultural products in the developed countries get processed and packaged (as suggested by `India Food Report 2008`, released at the Food Forum India, in Mumbai), there is huge scope for export-led growth in the sector.
Recognising this, the country aims at, in the next few years, raising the share of processed food to 20 per cent in comparison to total agri-produce, on the one hand, and enhancing export of these items to three per cent on the other.
The domestic food market, according to the `India Food Report 2008` is estimated at over US$
182 billion accounting for about 2/3rd of the total Indian retail market....
The Indian food market is poised to grow two- fold by 2025. The size of the Indian food consumption market is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent. The steady growth of the Indian economy and the improving lifestyle of Indians have been istrumental in this growth. The growth of the food industry in India stems from the consistently increasing agricultural
output. With the second largest arable-land area in the world, India is one of the key food producing countries in the world, second only to China.
• Currently, India ranks second in fruit production and third in vegetable production in the world.
• In 2007-08, foodgrain production in India had registered a 4.6 per cent growth with 227.32 million tonnes as against 217.28 million tonnes in 2006-07, according to estimates by the agriculture ministry.
• The output of coarse cereals in 2007-08 was 39.67 million tonnes, 17 per cent higher than the 33.92 million tonnes in the previous fiscal.
• The total output of oilseeds is estimated to have risen to a record 28.2 million tonnes, about 16 per cent higher than the 24.29 million tonnes in 2006-07.
• The production of pulses has risen to 15.19 million tonnes, registering a year-on-year growth of 7 per cent, and touching a new high. ...
The food processing sector in India has a market size of $70 billion, employs 13 million persons directly and two-and-a half times that number indirectly. The Indian food processing market is one of the largest in terms of production, consumption, and export and import prospects.
The branded packaged food industry is expected to grow at the rate of 9-12% per annum depending on the segments, including snacks food, ready-to-eat food, healthy and functional food. The total domestic food business is estimated at about Rs 5 lakh crore annually. Of which, the branded packaged food industry is estimated to be about 7.5% or Rs 37,500 crore. The
growing awareness among consumers is propelling a consistent increase in the size of the branded food segment. The branded packaged food business is expected to grow at the rate of 9% to12% annually.
The growth in the economy, coupled with a strong desire among consumers to maintain a healthy lifestyle and the growing awareness of functional ingredients such as herbs, minerals, vitamins, omega fatty acids and probiotics is driving the functional foods and beverages market.
The food ingredients market is also increasing with a rapid growth rate, as consumers increasingly demand bigger, bolder tastes, foods that are healthy, and ingredients that are natural or sustainable. Consumers are becoming more sophisticated and want more upscale flavors and ingredients. The food ingredient business is expected to grow by 40% in the next year....
milking money for shareholders Nestle way...!
Posted by :
psgs
Lesson No.4: Buy this giant bluechip FMCG stock and grow rich. It will return goodies to its shareholders in this year. This is a rare gem type of stock which is also large cap in category. Investors having patience can choose this stock for long term investment.
Yours truly,
Swamy.
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BSE Announcements on Nestle
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MMB MessengerNestle India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 30, 2009, inter alia, to consider the un-audited financial results of the Company for the half year and second quarter ended on June 30, 2009 (Q2). ...
post the link pls...
Read my message dated 17th April 2009 as it is there 50 years in India they have to give somthing to there investors...
Can any one inform why there is a spurt in the Nestle`s price?
Is there any bonus in the offeing? ...
BSE Announcements on Nestle
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MMB MessengerNestle India Ltd has informed BSE regarding the proceedings of the 50th Annual General Meeting (AGM) of the Company held on May 05, 2009. ...
BSE Announcements on Nestle
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MMB MessengerNestle India Ltd has informed BSE regarding a Press Release dated May 22, 2009 relating to the change of Chairman and Managing Director of the Company....
BSE Announcements on Nestle
Posted by :
MMB Messenger
Nestle India Ltd has informed BSE that Mr. Martial C Rolland, Chairman and Managing Director of Nestle India Ltd, shall be leaving the Company to take up a new assignment within Nestle Group.
It is proposed that Mr. Antonio Helio Waszyk shall takeover as the Chairman and Managing Director of Nestle India Ltd, subject to necessary approvals. Mr. Antonio Helio Waszyk is presently the Head of Food Strategic Business Unit, Nestle Group, Switzerland....
BSE Announcements on Nestle
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MMB MessengerWith reference to the earlier annoucement dated May 08, 2009 regarding strike by workers at Companys Factory at Pantnagar, Nestle India Ltd has now informed BSE that the strike has ended and workers have resumed work....
BSE Announcements on Nestle
Posted by :
MMB MessengerNestle India Ltd has informed BSE that the Company made a presentation to the Financial Analysts at the meeting held on May 15, 2009. The Company has submitted to BSE the details of the above presentation....
BSE Announcements on Nestle
Posted by :
MMB MessengerNestle India Ltd has informed BSE that the workers of the Companys Factory at Pantnagar have resorted to an illegal and unjustified strike relating to disciplinary action taken by the Company against a few workers. Company is in dialogue with concerned people for discontinuation of the illegal strike. Appropriate steps have been taken by the Factory Management towards production at the Factory....



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