FDI
in 2010 in the food processing sector has gone up by 175%. France, Germany and
Canada are investing in the highly potential food processing sector in India.
We suggest you buy food scrips at declines. Wait for the market to bottom out
and buy these scrips !
The major food scrips are
Nestle India Ltd
Cadbury's India Ltd
Kelloggs India
Hindustan Lever Ltd
ITC-Agro
Godrej Foods
MTR Foods Ltd
Amul
Ruchi Soya
Brittania
Marico
Tata Tea
Dabur
etc
Amul's turnover is more than 1.7 billion USD. ITC Foods'AshirvadandSunfeastbrands
have already captured the market. MTR Foods is a good buy. It has been
acquired by ORKLA. One need not unduly highlight the potential of the MNC
scrips like Cadbury's, Nestle and Kellogs !
Still there are many challenges for the Indian f p industry. After the success
of the Green and White revolutions, India became a major provider of
foodgrains, fruits, vegetables and milk. But his success was not matched by
developments in supply chain management and in new technologies for the
preservation, processing and storage of food. More than 70% of fruits goes
waste due to lack of infrastructural facilities, lack of cold storage units
and warehouses. Near starvation and pockets of shortages, substantial wastage
due to spoilage, quality deficiencies and inadequate returns to farmers
characterise this sector.
The Indian F P Minister told the Western powers " We have the raw
material, you have the technology. So please invest in India " He is
right, as India produces 13% of the world's vegetables and 10% of the world's
fruits !.
At the moment, India needs an investment of $30 b in this sector. Rising
incomes for the middle class, rising urbanisation, rising dual income
households, all point out to the fact that the numero uno industry for India
will be food processing !
In Financial Astrology, Jupiter rules fruits and vegetables. His placement in
the 9th does augur well for this industry. So you can invest in these scrips,
when the market reacts sharply ! Buy cheap, sell dear !
