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Food Industry in Telangana
The youngest state in India, Telangana is one of the fastest growing and one of the few revenue surplus states in India. It is a large producer of agro products along with being a market leader in the poultry and seed business and holds huge opportunity to add value to agro-products and expand the exciting strengths.
It is the largest producer of Turmeric and Citrus Limetta(sweet orange) and second largest producer of dried Chillies and Maize. The State comes among Top 10 in total fruit production amongst all states of India and ranks 3rd in production of Eggs and 5th in Meat production amongst all states of India. Other major agricultural and horticultural crops in the state are – Rice, Wheat, Ragi, Mango, Guava, Papaya, Pomegranate, Sugarcane, Tomato, Onion, Carrot, Tamarind.
Infrastructure
The state is endowed with a robust infrastructure – with 4 mega food parks, 146 industrial parks, 27 SEZs, and 2 agri-export zones ; 300MLD (Millions of Litres per day) surplus industrial water supply (Mission Bhagiratha); power surplus (6.3% power in 2017-18); and an international airport
| S.No. | Food Park | Location | Area (in acres) | Area to be allotted (in acres) |
|---|---|---|---|---|
| 1. | Smart Agro Food Park | Nizamabad | 35 | 35 |
| 2. | TSIIC Food Park | Khammam | 29 | 29 |
| 3. | Basavashakti Food Park | Sangareddy | 26 | 26 |
| 4. | Raagamayuri Food Park | Mahabubnagar | 61 | 61 |
Key Food Parks in Telangana
In addition to these food parks, land is also available in various agro clusters in Jangaon, Sircilla, Adilabad, Nalgonda ; Seed Cluster in Siddipet ; Spice Park in Nizamabad ; Snack Food Cluster in Medchal ; and Agro Industrial Zones in Sangareddy, Rangareddy.
The state has following two Cold Chain Units:
| S.No. | Cold Chain Project | Location | Type |
|---|---|---|---|
| Prima Foodtech Pvt. Ltd. | Medak | Fruits & Vegetables | |
| Gubba Cold Pvt. Ltd. | Rangareddy | Fruits & Vegetables |
Telangana Government has formulated a number of policies to provide impetus to the sector. Also, a separate society named – Telangana State Food Processing Society is established by the Government of Telangana to promote Food Processing Industries in the State.
Potential Investable Projects
- Corn extraction : There is ample scope for new players to enter the sector as India’s consumption of corn has been rising at a CAGR of 6% during 2006-07 to 2011. Products like Dextrose, Sorbitol, Glucose, starch and especially, corn protein that is ‘zein’ are some of the extraction products of corn.
- Breakfast cereal manufacturing: The breakfast cereal market in India is rising at a rapid CAGR of 22.07%. Value added products from corn like Cornflakes, Muesli hold huge potential in this era of increasing health conscious consumers.
- Milk Processing : In Telangana, rural milk trade practices are not established and milk marketing network is not well developed. Milk is produced mostly for household consumption and local marketing. Unmet needs along with changing consumption patterns and rising incomes offer a huge scope for new entrants to tap the markets.
- Millet Processing : Telangana with its large production of coarse cereals would be an ideal destination to set up a unit manufacturing Value added products from millet like pasta, noodles, baked products.
- Ready to eat(RTE) Foods : India’s RTE food market is projected to grow at a CAGR of around 21.99% during 2014-19. This segment has immense scope given the increasing demand of convenient food in India.
The state with a strong agriculture raw material base, a large and widespread industrial land bank, skilled manpower and robust industrial policy provides ample of opportunities in food processing sector.