Feasibility study of project management firm for food processing industry

Abstract

Food processing industry is one of the largest industries in India that contributes to 14% of GDP through manufacturing. Factors like growth in domestic demand for processed food, rise in export opportunities, increasing investments owing to Make in India initiative and policy support from government of India is attracting several players to enter into it. Food processing sector mainly consists of six major segments namely, Fruits and vegetables, Milk, Meat and poultry, Marine products, Grain processing and consumer food. Reports show that the food processing industry is currently valued at US$ 258 billion and is expected to grow at a rapid rate to reach US$482 billion by 2017.

Earlier, the firms interested in this sector proceeded on their own by importing machinery and equipment or contacting local manufacturers. They faced various challenges in the process from selection of right product, right vendors, operating at maximum efficiency, achieving smooth factory operations, obtaining after sales services and getting the maximum benefit within their investment budget. This process further got complicated and caused confusion with increased number of manufacturers in the recent past. This paved the way for evolution of project management firms which acted as one-stop solution shops for all those interested in entering food processing industry. These project management firms can be broadly categorized as large, medium and small depending on their scope, reach and volume. The various parts of value chain that they cater to are: EPC (Engineering, Procurement, Construction), marketing and after sales services.

Absence of a dominant player paired with a large scope for future growth intrigued us to do a feasibility study of entering as a project management firm in this sector.