A PROJECT REPORT ON READY TO EAT FOOD INDUSTRY

SUBMITTED TO: PROF. S. C. REDDY Director, S PIMCS

SUBMITTED BY: ANAND ASODIYA ME!U" ANOJIYA MANIS! PARMAR D!ARA T!A ER (06) (#$) ($$) (%%&)

S. K. PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES, GANDHINGAR-23

AC NO'"ED(EMENT
At the very outset of this report with all our due respect and regards we take this privilege to extend our sincere thanks to all those who helped us during our project. We are highly grateful to our director Pro). S. C. Re**+ who gave us the opportunity to carry our project as a part of MRIS course in REA ! "# EA" $## industry. Indeed this project has really enhanced our knowledge in the Industry. field of REA ! "# EA" $##

We are also thankful to Pro). Pr,ti-, Pr,.,/0 and our institute S%&IM'S. (astly we want to thank all the people who gave their support directly or indirectly to )ake this project successful.

E1ECUTI2E SUMMARY
We Indians are extre)ely fussy a*out the food we eat+ and hate to co)pro)ise on taste and ,uality. So+ we like our vegeta*les with the sa)e taste for years together+ perhaps just like it was in our childhood+ which put in other words )eans that+ for us+ there-s no su*stitute for ho)e)ade food. .ut have we ever given a thought to how )uch ti)e we spend in cooking/ 0ow )any toils go *ehind the exotic fares that a wo)an prepares for her fa)ily/ Innu)era*le hours are spent on every )outh1watering dish. 'utting this+ chopping that+ roasting+ grinding+ frying2. Etc.3 'ooking is indeed a full ti)e occupation. .ut today-s wo)an+ with so )any de)ands on her ti)e+ si)ply cannot afford to spend a whole day in the kitchen. At the sa)e ti)e+ in no way is she willing to su*stitute her ways+ for the fear that ,uality and taste )ay *e co)pro)ised. 4ow people have discovered the joys of a si)pler+ faster and fun way of cooking traditional Indian food. As nuclear fa)ilies proliferate in ur*an India+ the ready1 to1eat )arket is set to grow. It-s a food revolution that-s *een a long ti)e co)ing. As dou*le1inco)e nuclear fa)ilies *eco)e the nor) in ur*an India+ everyone who is anyone in the food *usiness has *een eyeing the ready1to1eat food sector with considera*le hunger. "op food co)panies say the )arket is currently worth around Rs 56 crore in India *ut they confidently predict it will grow to around Rs 766 crore in the next one or two years. So there is a great future for food co)panies in India.

TAB"E OF CONTENTS
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<. '#M&A4! &R#$I(E2222222222222222222222....= <.8 M"R22222222222222222222222222...= <.7 I"'1AAS0IRWA 22222222222222........................86 <.; SA"4AM #>ERSEAS222222222222........................87 <.< "ES"! .I"ES22222222222222222...................8? 5. "0E $IRS" I4"ER4A"I#4A( '#4$ERE4'E I4 I4 IA #4 REA !"#1 EA" $## 1 7665 222222222222222222222....... ...8=

?. &RESS RE&#R"#4 R"E $## @ SE&"EM.ER 76+ 766;+ .9SI4ESS S"A4 AR 2.............................................................................................8A =. A"A A4A(!SIS A4 I4"ER&RE"A"I#4222222222...........275

B. S9::ES"I#4S2222222222222222222..............22;8 A. '#4'(9SI#42222222222222222222222222..;7

%. INTRODUCTION
In today-s co)petitive world the practical study for)s an i)portant part in each and every professional course. "he M.A is a course in which the theoretical knowledge is *acked *y the practical study. "hat study is in the for) of different projects which are undertaken during the M.A course. 0ere we have done a project on a READY TO EAT FOOD INDUSTRY as a part of MAR%E"I4: RESEAR'0 I4$#RMA"I#4 S!S"EM course. "he current situation is )ade known to the students when they undertake the project. "he project gives *etter insides into the application part of the theory. "he co)panies in an industry and their operations can *e *etter known *y the students when they analyse the data+ and prepare the project.

"his project is on the study of REA ! "# EA" $##

)arket of India. We have

done analysis *ased on the pri)ary data Cwhich are collected through survey D personal interviewE and secondary data Cwhich are collected fro) different sources like internet+ )agaFines+ and reports of different :overn)ent agenciesE. "his project also includes the current news on ready to eat food and also includes the details of the first international conference in India on REA ! "# EA" $## industry.

3. RESEARC! MET!ODO"O(Y
OBJECTI2ES OF PROJECT: "o study the )arket of Ready to Eat food. "o deter)ine the factors affecting the purchase decision of Ready to Eat $ood. "o understand the consu)ption pattern of Ready to Eat $ood. "o analyse the co)petition a)ong different *rands. TIME SCOPE OF PROJECT: As the project is undertaken as a part of MAR%E"I4: RESEAR'0 I4$#RMA"I#4 S!S"EM su*ject+ the ti)e li)it taken to co)plete the project is the "wo )onths. DATA CO""ECTION MET!OD: &RIMAR! A"A 8. Guestionnaire. 7. &ersonal Interview. SE'#4 AR! A"A 8. Internet 7. MagaFines. ;. 'o)panies- .rochure. SAM&(E SIHE I 866 SAM&(I4: "E'04IG9E I 'onvenience Sa)pling. (#'A"I#4 $#R S9R>E!1 Ah)eda*ad and :andhinagar "IMITATIONS IN PROJECT: As no project is possi*le without any li)itations+ our project and survey is also *ounded *y so)e li)itations of which few )ajor li)itations are as follows@

"he project was the part of MRIS Su*ject and hence the ti)e

duration to carry out the project. "he project was restricted to so)e selected study areas of REA ! "# EA" $## industry. "he respondents have *een selected *y convenienceJ hence they )ight not *e perfect representative of the analysis. "he research depends on the data o*tain fro) secondary sources. "hus it authenticity of the report depends on the authenticity of the source of data.. "he analysis also depends on the respondent-s answer and thus )ight differ fro) actual situation.

#. INDIAN FOOD INDUSTRY

"he food industry is on a high as Indians continue to have a feast. $uelled *y what can *e ter)ed as a perfect ingredient for any industry I large disposa*le inco)es I the food sector has *een witnessing a )arked change in consu)ption patterns. Increasing inco)es are always acco)panied *y a change in the food *asket+ says an I'RA report+ which analyses food expenditure patterns over the last three decades in India. "he report o*serves that the proportionate expenditure on cereals+ pulses+ edi*le oil+ sugar+ salt and spices declines as households cli)* the expenditure classes in ur*an India while the opposite happens in the case of )ilk and )ilk products+ )eat+ egg and fish+ fruits and *everages. $or instance+ the proportionate expenditure on staples Ccereals+ gra)s+ pulsesE declined fro) <5 per cent to << per cent in rural India while the figure settled at ;7 per cent of the total expenditure on food in ur*an India. A large part of this shift in consu)ption is driven *y the processed food )arket+ which accounts for ;7 per cent of the total food )arket. It accounts for Rs 8+7B6 *illion C9SK7A.< *illionE+ in a total esti)ated )arket of Rs ;+AA6 *illion C9SKA8.?? *illionE. "he popularity of READY TO EAT food packs and the *otto)lines of eateries have a story to tell. Eating out no longer )arks a special occasion. 4ot only does the traditional eat1at1ho)e type prefer to eat out+ he is very de)anding too. 0e wants value for his )oney in ter)s of ,uality and variety. 4o wonder+ )ulti1 cuisine restaurants are )ushroo)ing even in s)all towns. Italian+ Mexican+ (e*anese+ Lapanese+ 'ajun I the list is growing.

'orro*orating this trend+ Euro)onitor International+ a )arket research co)pany+ says the a)ount of )oney Indians spend on )eals outside the ho)e has )ore than dou*led in the past decade+ to a*out 9SK5 *illion a year+ and is expected to dou*le again in a*out half that ti)e. Another interesting trend noticed in consu)er patterns is the growth of *randed products. "he *randed food )arket is on a roll. It grew over 5 per cent in 766<+ according to the latest A'4ielsen :lo*al Services report on glo*al trends in food and *everages. "hat )akes food an attractive proposition for investors. Savvy co)panies have pu)ped in )ore than Rs ?6+666 crore C9SK8;.=B *illionE in new food and far) *usinesses in 766<. According to industry esti)ates+ ;78 private sector projects worth Rs ?6+;?6 crore C9SK8;.B? *illionE were announced in 766< co)pared to BA with an invest)ent of Rs 7+8;6 crore C9SK<BA.; )illionE in 766;. "he popularity of food and agro products is not surprising when the sector is now offering a growth of )ore than 856 per cent in sales. With such pro)ise in the sector+ a nu)*er of foreign co)panies have joined the fray. While 9S *rands such as Mc onald-s+ &iFFa 0ut and %entucky $ried 'hicken have *eco)e household na)es+ )ore are on their way. "he 9SK= *illion 9S soups1to1juices co)pany+ 'a)p*ell+ is planning an entry into India. African fast food chain 4ando-s+ which specialises in fla)e1grilled chicken )ade in peri1peri CchilliE sauce+ is all set to enter India. A)ong processed food products+ the )ilk product )arket needs special )ention. Retail shelves now offer )ultiple choices in the processed cheese seg)ent with (e .on of a*on International+ (aughing 'ow+ .ritannia and A)ul. Mother airy evelop)ent .oard C4 airy+ the )arketing ar) of 4ational .E+ plans to join

the ?+6661tonne processed cheese )arket. India is+ in fact+ one of the largest )ilk producers in the world. Its )ilk output is esti)ated to have grown *y ;.8; per cent to A7.7 )illion tonnes during 766;16<.

"he new wave in the food industry is not only a*out foreign co)panies arriving here attracted *y the prospective siFe of the )arket. It is also a*out the )igration of the Made in India tag on food products travelling a*road. Indian food *rands and fast )oving consu)er goods C$M':sE are now increasingly finding pri)e shelf1space in the retail chains of the 9S and Europe. "hese include 'o*ra .eer+ .ikanervala $oods+ M"R $oodsM ready1to1eat food stuff+ I"'Ms %itchen of India and Satna) #verseasM .as)ati rice. In a *id to *oost the food sector+ the govern)ent is working on agriFones and the concept of )ega food parks. #ne indication of the i)portance that the sector received is the hiking of the present outlay for the sector fro) Rs B5 crore C9SK8A.5 )illionE in 766<165 to Rs 8B6 crore C9SK<8.;5 )illionE the next year+ )ore than twice the earlier a)ount. "he govern)ent is also considering investing Rs 866 crore C9SK77.A= )illionE in at least 86 )ega food parks in the country *esides working towards offering 866 per cent foreign direct invest)ent and inco)e tax *enefits in the sector.

& COMPANY PROFI"E:

&.% MTR M"R $oods (i)ited is a)ongst the top five processed food )anufacturers in India. We )anufacture+ )arket and export a wide range of packaged foods to glo*al )arkets that include 9SA+ 9%+ Australia+ 4ew Healand+ Malaysia+ Singapore+ 9AE and #)an. Starting with the legendary M"R restaurant in .angalore+ India-s silicon valley+ we now offer MMco)plete )eal solutionsM. #ur wide range of products include ready1to1eat curries and rice+ ready1to1cook gravies+ froFen foods+ ice crea)+ instant snack and dessert )ixes+ spices and a variety of acco)pani)ents like pickles and papads. #ur deep understanding of culinary expectations and needs has resulted in )any new and innovative products. #ur invest)ents in infrastructure and technology ensure that we can scale rapidly and *ring these to )arket. "oday+ consu)ers across the glo*e count on us to *ring the) all1natural+ wholeso)e and delicious food that is also convenient and no1fuss. We have also expanded our retail presence significantly@ conte)porary M4a))a M"RM and M"R kiosks now serve delighted consu)ers across .angalore and 'hennai. 4UA"ITY PO"ICY: We are IS# A667 and 0A''& certified. At M"R+ ,uality is a way of life. 0aFard Analysis and 'ritical 'ontrol &oint or 0A''&+ developed *y the 'odex Ali)entarius 'o))ission+ is a glo*al food safety standard. We have successfully )et the stringent re,uire)ents for this certification.

#ur facilities are e,uipped with the latest syste)s. We adhere to international standards across all operations@ fro) sourcing the finest ingredients to processing and packing using cutting1edge technology. Each M"R product carries this assurance of ,uality and )eets the high expectations our consu)ers have fro) us. FEATURES OF MTR5S FOOD PRODUCTS@ What )akes M"R a trusted+ household na)e/ #ur products are 866N natural have no preservatives and use only the finest+ )ost authentic ingredients. .e it an Instant )ix or a Ready to Eat dish+ pickles or soups+ all M"R products are known for their )outhwatering+ Oho)e1cookedO taste. We adhere to the )ost stringent ,uality standards+ fro) sourcing ingredients to processing and packing. We are IS# A667 and 0A''& certified. We use the latest technology to preserve the ,uality and freshness of our food. #ur use of technology fro) the All M"R products are 866N vegetarian. efense $ood Research (a*oratory for our Ready to Eat products has won us the &residentMs award.

PRODUCT "IST: READY6TO6EAT CURRIES 8 RALMA MASA(A CREE C.9(%E 8%: 7 A( MA%A4I CREE C.9(%E 8%: ; R"E &A(A% &A4EER CREE C.9(%E 8%: < R"E MIPE ? R"E >E: '9RR! CREE C.9(%E 8%: 5 R"E '0A4A MASA(A CREE C.9(%E 8%: A( $R! CREE C.9(%E 8%: = R"E 4A>RA"0A4 %9RMA CREE C.9(%E 8%: B R"E A(9 M9""ER CREE C.9(%E 8%: A R"E &A4EER MA%0A4I CREE C.9(%E 8%: 86 R"E &A> .0ALI CREE C.9(%E 8%: 88 R"E A>IA( CREE C.9(%E 8%: 87 R"E .E4 I MASA(A CREE C.9(%E 8%: RICE ITEMS RI'E .9(% C8%:E 8 R"E "AMARI4

7 R"E (EM#4 RI'E .9(% C8%:E ; R"E SAM.AR RI'E .9(% C8%:E < R"E RASAM RI'E .9(% C8%:E 5 LEERA RI'E CREE C.9(%E 8%: ? IE" E(I"E CREE C.9(%E 8%: = MASA(A RI'E CREE C.9(%E 8%: B RALMA '0AWA( CREE C.9(%E 8%: A %0ARA.A"0 CREE C.9(%E 8%: 86 %ESARI.A"0 CREE C.9(%E 8%: 88 .ISI.E(E .A"0 CREE C.9(%E 8%: 87 &#4:A( CREE C.9(%E 8%: 8; >E:E"A.(E &9(A> CREE C.9(%E 8%: SOUPS 8 SIM&(! "#MA"# S#9& 8P8%: 7 S&I'! "#MA"# S#9& C.9(%E8P8 %:

; M9((I:E "AW4! S#9& C.9(%E 8P8 %: < S&I4A'0 'ARR#" S#9& C.9(%E8P8 %: 5 MIPE >E:E"A.(E S#9& C.9(%E 8%g ? .A.! '#R4 D S&RI4: #4I#4 S#9& C.9(%E8kg

&.3 ITC 7 AAS!IR2AAD AAS!IR2AAD READYMEA"S I"' $oods launched a range of Ready1 "o1Eat dishes under the MAashirvaad ReadyMealsM la*el+ in 0ydera*ad+ on 75th Lune 766;. "he range now co)prises nine dishes and two 'o)*o packs. "he dishes on offer currently are Raj)a Masala+ 4av Ratan %ur)a+ .as)ati Rice and !ellow packs. "he ishes are priced *etween Rs. ;6Q1 to Rs. <6Q1 for a 7B5 g)s pouch and the al Makhani+ Aloo Mutter+ &alak &aneer+ al "adka. Raj)a Masala D &indi 'hana+ &av .haji+ Mutter &aneer and !ellow

al "adka D .as)ati Rice are availa*le in 'o)*o

'o)*o packs are priced at Rs. <5Q1 for a <B5 g)s pack. "he uni,ue packaging for)+ using a retort process+ ensures that the original freshness and taste of the recipes is protected without the use of preservatives. T!E RETORT PROCESS "he pioneering introduction of retorting technology is what has )ade the sale of RReady1to1Eat- food products co))ercially via*le.

"he need of frontline )ilitary soldiers for light *ut nutritious food+ with an assured long shelf life was the i)pulse and the inspiration for the develop)ent and fine1 tuning of the retorting process. Retorting technology was used *y the 9S in its Apollo Space )issions. "oday it is the )ainstay of 9S )ilitary rations. Retorting is also widely used in packaged foods in Lapan and Europe. "he efficacy and effectiveness of the retorting process depends on the sterilisation process and the retorting pouch. STERI"ISATION PROCESS "he sterilisation process ensures the sta*ility of the Ready1to1Eat foods in retort pouches+ on the shelf and at roo) te)perature. "he application of sterilisation technology co)pletely destroys all potentially har)ful )icro1organis)s+ there*y )aking sure that the food product has a very long shelf life. 0owever+ in the current co))ercial context+ the shelf life is li)ited to one year.

RETORT POUC!ES Retort pouches are flexi*le packages )ade fro) )ulti1layered plastic fil)s+ with or without alu)inu) foil as one of the layers. "heir )ost i)portant feature is that they are )ade of heat1resistant plastics+ unlike the usual flexi*le pouches. "his )akes the retort pouches uni,uely suita*le for the processing of their food contents at te)peratures around 876 degrees 'elsius. "hat is the kind of a)*ient te)perature prevalent in the ther)al sterilisation of foods. "he ;1ply la)inate consisting of &E"Q Al oil Q && is the )ost co))on )aterial used in retort pouches and is the only one used in India. I"' uses <1layered pouches. "he use of &E" or polyester as the outer layer gives the re,uired strength to the pouch. "he alu)inu) foil serves as a *arrier layer ensuring a

shelf life of )ore than one year. "he 4ylon layer provides strength to the pouch+ reassuring additional shelf life. "he inner)ost layer of &olypropylene provides the critical seal integrity+ flexi*ility+ strength and taste and odour co)pati*ility with a variety of food products. RAashirvaad ReadyMealsM is currently availa*le across all )ajor cities like elhi+

Mu)*ai+ %olkata+ .angalore+ 0ydera*ad+ 'hennai+ &une+ Ah)eda*ad+ 4agpur+ &atna+ :uwahati+ and >ishakhapatna). All grocery stores selling ready1to1eat products stock RAashirvaad ReadyMeals-.

&.# SATNAM O2ERSEAS !EAR E>E4"S 8ABA 1 Satna) #verseas (i)ted was incorporated on 7?th Luly as a private (i)ited co)pany with the Registrar of co)panies 0arayana at 4ew co)pany on Ath elhi and elhi under the Indian 'o)panies Act+ 8A5? with the )ain ece)*er+ 8AA7.

o*ject to )anufacture and export rice. It was converted into a pu*lic li)ited

1 Satna) #verseas (i)ited has *ee) pro)oted *y the Arora fa)ily fro) A)ritsar. Sri Lugal %ishore Arora+ Sri Satna) Arora and Sri :urna) Arora are the )ain pro)oters of the 'o)pany. 1 "he 'o)pany is an associate of the Satna) #verseas :roup+ which is known for its present in Rice "rade since 8A=A. 8AA< 1 "he 'o)pany ca)e out with a pu*lic issue of <6 lakhs E,uity Shares of Rs.86Q1 each for cash at a pre)iu) of Rs.=Q1 per share aggregating to Rs.?B6.66 lakhs in the )onth of LanuaryQ$e*ruary. 8AA5 1 "he 'o)pany has launched its pre)iu) ,uality *randed pulses on the national level.

1 "he co)pany issued <6+66+666 4o. of e,uity shares of Rs.86Q1 each at a pre)iu) of Rs.=Q1 per share during the year. 8AA= 1 "he co)pany launched a new product 1 tea *ags under the *rand na)e of S>iceroyS. 8AAB 1 "he 'o)pany has tied up with few *ig co)panies in different countries for Export of Rice+ &ulses and other products. 1 "he 'o)pany has *agged award fro) W#R( its excellent contri*ution towards glo*al growth. 1 "he 'o)pany allotted 5?+66+666 4o. of E,uity Shares of Rs. 86Q1 each fully paid1up *y way of .onus Shares. 7666 1 In a *id to *oost *as)ati exports under its S%ohinoorS *rand+ Satna) #verseas (td is setting up a wholly1owned )arketing su*sidiary in the 9S. 1 "he co)pany received the prestigious A&E A Award for the 4inth !ear in succession for the outstanding export perfor)ance during the year. 1 "he co)pany has tied up with a )ulti1national 'o)pany in Saudi Ara*ia to )arket rice under our own .rand in Saudi Market+ which constitutes over =6N of the total .as)ati rice )arket of the world. 1 "he 'o)pany has entered into agree)ent with 4ational Securities (i)ited and 'entral "rading of shares in electronic for). 766< 1Satna) #verseas ties up with A)aFon.co) for rice trade epository E'#4#MI' $#R9M in view of

epository Services CIndiaE (i)ited to facilitate holding and

2ISION 8 MISSION Satna) #verseas to e)erge as the *est pre)iu) food co)pany+ ena*ling people to savour the flavours of India+ glo*ally T "o achieve glo*al standards of excellence in our operations with focus on consu)er satisfaction Qdelight+ providing consu)ers the Rflavour of India-J T "o set up high standards of leadership+ ,uality and productivity. T "o develop a well knit hu)an resources policy and culture which )otivates e)ployees to contri*ute their *est towards achieve)ent of organisational o*jectivesJ and T "o function as a responsi*le corporate citiFen and help enrich the ,uality of life of the co))unity and work towards sustaina*le develop)ent.

"o harvest nature-s finest products+ process the) using the *est technology and )ake the) availa*le across the glo*e. "he )ission enco)passes the three core virtues that drive the co)pany @ T 0igh1,uality products T "he finest technology T :lo*al availa*ility NET'OR OF SATNAM

A ,uality product has little value if it does not reach its consu)er. It is with this in )ind Satna) #verseas has developed an extensive distri*ution network that covers not only India+ *ut also a significant chunk of the international )arket. #ver the years+ Satna) #verseas has e)erged as a key player in the glo*al )arket of Indian agro products. "he co)pany is recognised as a leading supplier of pre)iu) ,uality .as)ati rice. In the last few years+ the co)pany has )ade exceptional efforts to encourage sale of *as)ati rice under its flagship U%ohinoorV

in the overseas )arket. And+ we have )et with considera*le success on this front. We have now penetrated glo*al frontiers and esta*lished ourselves as a leading player in the .as)ati rice )arket glo*ally. "oday+ U%ohinoorV+ is visi*le in the retail counters in a nu)*er of countries like 9.S.A.+ 9.%.+ 'anada+ $rance+ Saudi Ara*ia+ %uwait+ 9nited Ara* E)irates+ etc. In India+ the co)pany has )ore than a hundred distri*utors+ <56 stockists and over 7+66+666 retailers+ giving it a reach that is unrivalled in the Indian )arket. T!E US OPERATION S.#.( Inc+ the co)pany-s fully owned su*sidiary+ is *ased in 4ew Lersey and overlooks the needs of the 9S and 'anadian )arkets. T!E U OPERATION Indo European $oods (i)ited+ "he co)panyMs fully owned su*sidiary+ is head,uartered in (ondon and looks after the European )arket. "he co)pany is setting up a rice processing )ill at felixtowe+ 9.%.+ Which is going to *e in co))ercial production *y first week of Luly. T!E MIDD"E EAST OPERATION Another joint venture co)pany+ Rich Rise Raisers $actory (('+ operates fro) u*ai and caters to the needs of the )arkets in the Middle East. As a result+ no )atter where you are+ there is a fair chance that you will *e a*le to enjoy ,uality products fro) Satna) #verseas.

&.& TASTY BITES EATAB"ES "IMITED "asty .ite Eata*les (td C".E(E was incorporated in 8AB5. Apart fro) ready to serve food+ the other *usiness of ".E( includes processing of vegeta*les+ lease of cold storage facilities and food services *usiness. "he co)panyMs plant is located at %hutao and .handgao C &uneE. "he co)pany currently derives =6 per cent of its inco)e through exports. ".E( launched ready1to1serve food products in India in 8AA6+ *ut was unsuccessful. Efforts to develop an export )arket or colla*oration with international )ajors like &epsi also failed. In 8AA<+ 'onnecticut1*ased &referred .rands Inc C&.IE+ an international natural foods )arketing and distri*ution co)pany+ ac,uired the glo*al )arketing rights for the "asty .ite *rand. "he "asty .ite *rand was successfully launched in the 9S )arkets in 8AA5. ".E( was referred to .I$R during the sa)e period. &referred .rands+ *y then the largest custo)er for ".E(+ decided to takeover )anage)ent control of the Indian co)pany. &.I through its 58 per cent su*sidiary+ &referred .rands $oods CIndiaE (td+ ac,uired a ?= per cent stake in the co)pany. "he co)pany initially launched its ready1to1serve Indian1vegetarian entrees in cities like &une+ Mu)*ai+ 'hennai+ 0ydera*ad+ .angalore and 4ew elhi. F9t9re P:,;/ "he co)pany is *anking on the changing consu)er *uying *ehaviour for the success of their products. In three years ti)e the co)pany sees the do)estic )arket overtaking the exports. A phased launch of ready to serve food over several other cities is *eing planned over the next 817 years. "he co)pany currently has only vegetarian food in its sta*le for the Indian )arket and proposes to gradually increase this to non1 vegetarian food in order to )eet the increased de)and.

<. T!E FIRST INTERNATIONA" CONFERENCE IN INDIA ON READY6TO6EAT FOOD 6 300<

Ready1to1Eat packs are fully cooked and ready to eat )eal with a long shelf life. Shelf life ranges up to ; years Cand *eyondE without refrigeration depending on storage te)peratures. So)e ite)s are availa*le which are also known as heat and eat. "he food is nor)al+ not freeFe dried+ and each ite) is cooked and sealed in individual high strength pouches. #nce the food is cookedQhalf cooked and packaged+ it never sees the light of day. $ull )eal R"E typically includes a )ain entree+ a side dish+ a dessert+ crackers and spread+ *everage *ase+ a spoon+ and an accessory packet. All the contents are packaged inside an outer *ag )aking the) co)pact and easy to pack. Ready to Eat packs were adopted as the 9S epart)ent of efense co)*at

ration in 8A=5. A large1scale production test *egan in 8A=B with delivery in 8AB8.It was widely known as Meals Ready to Eat in those ti)es. MRE I C8AB8E was the first date of pack. "hough it was extensively used *y the defense for long ti)e+ it has *een well accepted *y civilians in recent past in the western world. With the inco)e level rising+ de)and for )ilk+ )eat or fish+ fruits and vegeta*les is also increasing in India. With )ore ur*aniFation+ Indian fa)ilies also consu)e )ore processed foods+ )ore ready1to1eat foods+ etc. Asian A)ericans+ now nu)*ering over 86 )illion along with the other 8; )illion persons of India origin spread all over the world are a huge potential )arket for the R"E $oods out of India. "his creates a scope for the producers to co)e out with a long range of dishes including the usual )eals. India had *een at the forefront for variety of dishes *oth in do)estic and glo*al )arket. "oday the ready1to1eat products produced fro) India are )ostly on .as)ati rice &ulao+ .iryani+ and )any )ore South Indian dishes. al+ 'hanna+ Raj)a+ Spicy >egeta*le 'urry+ Mushroo)+ &aneer+ 'hicken+ .roccoli+ Sweets

R"E products exported fro) India are )ostly consu)ed in 9%+ Europe+ 9SA+ and Ara* countries. With the advanced food preservation technology the chances of preserving food for longer ti)e is increasing day *y day. Still the stuff inside the ready1to1eat packs re)ain nutritious and hygiene for a certain period only. So it is highly essential to enhance the ,uality to co)pete in the glo*al )arket. "hough we produce *etter ,uality food products+ we fail to co)pete in the glo*al )arket due to i)proper packaging as per international nor)s. Guality is of para)ount i)portance for the growth of the R"E foods *usiness in India. &oor hygiene in the preparation and sale of street foods is a continuing pro*le)@ $ood ,uality i)prove)ent )ust *egin at far) level and )ust *e regarded as an indispensa*le ele)ent of the glo*al approach to i)proving the post1harvest syste). "hough the de)and for the ready1to1eat products is increasing in the glo*al )arket+ the supply is still not satisfactory. Lust to given an exa)ple+ there are )ore than 566 units in the 'ity of (ondon+ which are into ready to eat foods. Exports as well as the do)estic )arket offer a vast scope for the Indian producers to excel in this sector. "he success of ready1to1eat is do)inated *y the fact that the )arket is decades away fro) )aturity and therefore can look forward to continued strong growth over a long period of ti)e.

6. PRESS REPORT ON RTE FOOD: SEPTEMBER 30,300#, BUSINESS STANDARD

As nuclear fa)ilies proliferate in ur*an India+ the ready1to1eat )arket is set to grow+ says Sou)ik Sen It-s a food revolution that-s *een a long ti)e co)ing. As dou*le1inco)e nuclear fa)ilies *eco)e the nor) in ur*an India+ everyone who is anyone in the food *usiness has *een eyeing the ready1to1eat food sector with considera*le hunger. "he result@ new )enus that include everything fro) &unja*i kadhi pakora in a can to pure vegetarian navratan kor)as in hi1tech retort pouches. .ut it has *een tougher to cook up a stor) in the Indian )arket than anyone expected. Indians proved re)arka*ly attached to freshly cooked )eals. 4evertheless+ ti)es )ay *e changing. "op food co)panies say the )arket is currently worth around Rs 56 crore *ut they confidently predict it will grow to around Rs 766 crore in the next one or two years. "ake a look at ITC Foo*/+ which started turning out dishes for the top end of the )arket with its pricey %itchens of India range. I"' won praise for its offerings and showed they could get the flavours right. .ut at Rs 856 for a <56 g) tin of dal *ukhara Cwhich feeds a*out three peopleE it was strictly a li)ited clientele. 4ow I"' is taking a shot at the )iddle )arket and trying to reach shop shelves around the country. It has put together a range of five vegetarian flavours including aloo )atar+ raj)a )asala and navratan kor)a+ packed in retort pouches and with a shelf life of 87 )onths.

"he 7B5 g) pouches W called the Aashirvaad range W sell for *etween Rs ;5 and Rs <6+ putting the) within reach of )iddle1class *uyers. Says Ravi 4aware+ 'E#+ I"' $oods+ OAashirvaad will now *e the ready1to1eat solution for the ti)e1 pressed fa)ily.O I"' is hoping to serve itself *ig helpings with its new *usiness. "he Aashirvaad ready1cooked dishes have already *een launched in five cities W Mu)*ai+ &une+ 0ydera*ad+ 'hennai and %olkata. In the next two )onths+ the products will also *e availa*le on shop shelves in elhi and .angalore. 4aware *elieves his two *rands have already captured *etween 85 per cent and 76 per cent of the ready1to1eat )arket. What-s )ore+ I"' isn-t stopping here. .y the end of this financial year+ another five flavours will *e added to the Aashirvaad *ou,uet. I"' already has two plants churning out products in .angalore and 4aware is scouting for locations to put up a third one. .ut I"' doesn-t have the kitchen to itself W not *y a long shot. M"R foods+ argua*ly the pioneer in the seg)ent+ is in no )ood to relin,uish the leadership position to the $M': *ehe)oth. S Suresh+ '##+ MTR points out that it has a huge )enu card with 85 curries and seven south Indian specialities. It-s also launching nine rice1*ased ite)s like le)on rice and raj)a chawal. M"R *elieves it is the largest in the field with over =6 per cent )arket share and it isn-t cowed *y I"'-s distri*ution )uscle. elhi and

Says Suresh@ OWe are already present across ?6 cities in India+ and *y 7665 hope to control around ;5 per cent of the Rs 766 crore )arket.O .ut M"R also has greater a)*itions and hopes to )ake it to dining ta*les around the world. It has sales and distri*utions tea)s in 4orth A)erica+ Australia+ West Asia and South East Asia. At another end of the country there-s S,t;,- O=er/e,/+ one of India-s largest exporters of *as)ati rice under the flagship %ohinoor *rand which is also hoping to )ake a *ig )eal fro) the ready1to1eat *usiness. It has introduced heat1and1eat curries and lentils with a distinctly north Indian flavour+ including &eshawari dal+ %ash)iri raj)a+ and A)ritsari chole. Also co)ing fro) the kitchen are other northern specialities like sarson ka saag and aloo palak. Research is underway to develop ready1to1eat paneer curries and pav *haji very soon. OEach of these preparations follows traditional recipes+O says general )anager+ Rajesh "rikha. O'usto)ers just need to heat for two1to1three )inutes in a )icrowave or *oiling water and eat.O A single pack priced at Rs <?+ is )eant to serve upto three persons. Satna)-s 9S& is its regional appeal. O&unja*i cuisine like &unja*i )usic is a rage in the rest of the country as well as overseas+O says "rikha+ Oand we want to serve the flavour of 4orth India+ as authentically as possi*le+ fro) our plant at Murthal in 0aryana.O

0ow *ig is the ready1to1eat )arket and is it poised for a ,uantu) leap/ "rikha *elieves the )arket is poised for an explosive ju)p and that it will triple in the next one year. Says "rikha@ OAccording to our internal esti)ates+ the do)estic )arket for ready1 to1eats is Rs 56 crore plus and is expected to grow three ti)es *y the end of 766<.O What-s )ore+ "rikha is fir)ly convinced that around Rs 75 crore worth of ready1 to1eat1curries are already selling. "hat-s likely to touch around Rs 866 crore *y 766< according to hi). 4aware is also counting on giant1siFed growth. 0is expectations aren-t very different fro) "rikha-s. 0e *elieves the )arket will touch Rs 766 crore *y around 7665 and he-s hoping to garner as )uch as 56 percent )arketshare *y spreading hi)self across 56 cities. 4aware is putting together a *ig1*udget print and television ca)paign to pro)ote his dishes which is *eing handled *y :rey Worldwide. "he co)pany is also organising sa)pling sessions to gauge custo)er feed*ack. "here are s)aller co)panies too that are hoping to gra* a chunk of the action. &une *ased "asty .ites Eata*les (i)ited X".E(Y has *een exporting for years and is now )aking an a)*itious thrust into the Indian )arket. "asty .ites started operations *ack in 8AB= *ut it didn-t )ake )uch headway and the products were withdrawn a year later. O&eople were sceptical *ack then and conse,uently our products were non1 starters+O says Ravi 4iga)+ president+ "asty .ites.

"asty .ites was taken over and restructured *y 9S )ultinational &referred in 8AAB. It registered a profit two years later. "he Rs 76 crore export1driven co)pany+ CB6 per cent of its earnings co)e fro) exportsE has successfully tapped )arkets in Ah)eda*ad+ .aroda+ Surat+ Mu)*ai+ &une+ .angalore+ 'hennai and 0ydera*ad. "he co)pany now plans to expand *y entering the northern )arkets aggressively. "asty .ites offers nine curries and six south Indian ready1to1eat dishes like avil and pongal. Also+ it recently launched a range of ready1to1cook CR"'E curry pastes. "asty .ites also has another range of ready1to1eat )eals that it )akes for the Indian Ar)y which co)e along with plastic plates. Inevita*ly+ Indian flavours do)inate the ready1to1eat )arket. .ut one of the earliest players was Indo14issin foods+ a su*sidiary of Lapan-s 4issin $oods which has *een selling instant cup noodles since 8AA8. "he B6 gra) cup+ in chicken+ vegeta*le and )asala flavours+ is priced at Rs 76. espite the presence of high1profile *rands+ Indo14issin-s :eneral Manager R > % La)es says the co)pany sells around ?.5 lakh cups every year+ giving hi) a *illing of Rs 8.; crore annually. OWe have *een consistently growing at 77 per cent annually+O he says. .ut I-) sure with the )arket ready to explode+ that nu)*er will only go north.O Ar)ed with a Rs 5.5 crore *udget+ cup1o1noodle advertise)ents are currently *eing aired on television channels.

Indo14issin has also actively targeted school children *y sponsoring ,uiF sessions and conducting sa)pling sessions at various schools. "he co)pany is also a*out to launch a su*1*rand in the ready1to1eat cup1noodle seg)ent targeted specifically at kids. .ut will the year1on1year 866 per cent growth that all players are so opti)istic a*out actually happen/O Most analysts *elieve the food co)panies aren-t *eing overly opti)istic. Says . 4arayanaswa)y+ executive director+ Indica Research@ O"he increased penetration of )icrowave ovens will need Rsoftware- to drive the Rhardware-. Ready1to1eats will find the perfect )atch in the upwardly )o*ile Indian kitchen.O O'onvenience is a pri)e factor+ *ut other factors like increased spending on food *y city couples are also i)portant+ says 0e)endra Mathur+ senior )anager+ food and agri1*usiness+ Ra*o India. A*road+ the convenience foods industry has grown to gigantic proportions. And Indians too could *e developing a healthy appetite for )eals fro) a can or a pouch.

$. DATA ANA"YSIS 8 INTERPRETATION

0ere we have used statistical techni,ues for analysis. We have analysed data to deter)ine the factors affecting the purchase decision of Ready to Eat $ood and to understand the consu)ption pattern of Ready to Eat $ood. 8E In which kind of fa)ily do you live/ X Y Loint fa)ily X Y 4uclear fa)ily X Y (ive alone F,-i:+ T+>e

75N

76N Loint 4uclear (ive Alone 55N

locations for our survey were Ah)eda*ad and :andhinagar. :enerally )ost of the people in :ujarat live in nuclear fa)ily. >ery few people+ whose native are not Ah)eda*ad D :andhinagar and doing jo* or *usiness here+ live alone. 7E o you use or consu)e REA ! "# EA" food products/ X Y !es X Y 4o

U/er/

;5N !es 4o ?5N

fro) the a*ove pie chart that around ?5N people do not use Ready to eat food and ;5N people do not use or consu)e it. "here are )any reasons why very few people consuk)e R"E food. "hey )ight *e less awareness+ less relia*ility+ higher price or no re,uire)ent of such products. FOLLOWING FOUR QUESTIONS ARE FOR USERS OR BUYERS OF READY TO EAT FOOD ;E Why do you consu)e ready to eat food products/ X Y 4eed. X Y "aste. X Y Relia*ility. X Y &rice. X Y $reshness. X Y Guality. Re,/o; )or B9+i;?
5N 6N 86N 86N 4eed "aste Relia*ility &rice 87N ?;N $reshness Guality

We can see fro) the pie chart that one of the )ost i)portant reason to purchase R"E food is the re,uire)ent. If a person lives alone and do not get the enough ti)e to cook food than and than he or she will go for it. And )ost of the users co)e under this category. "hey need the ready to eat food products. And so)e of the people like the taste of it that is why they use it. <E Which co)pany-s REA ! "# EA" food product do you consu)e/ X Y I"'. X Y M"R. X Y Satna) #verseas. X Y "esty .ites. Pre)erre* Co->,;i/
;N 8N 76N I"' M"R Satna) #verseas =?N "esty .ites

Most of the users of R"E food purchase I"'-s AAS0IRWA

CR"E food *randE.

And second preference is given to M"R. As I"' is a $a)ous and trustworthy co)pany people prefer to purchase their products. And as other co)panies like M"R+ SA"4AM #>ERSEAS and "AS"! .I"ES have not *eco)e aggressive in :ujarat+ people are not aware a*out the). "hey are also expanding their )arket. cE 0ow )any ti)es do you consu)e REA ! "# EA" food in a )onth/ X Y 815 ti)es X Y 5186 ti)es X Y 86185 ti)es X Y More than 85 ti)es

B9+i;? >erio*
5N 85N 6N 815 ti)es 5186 ti)es 86185 ti)es B6N Z85 ti)es

Most of the users consu)e R"E food for 815 ti)es in a )onth. It )eans today also )any people like to eat ho)e )ade food and restaurant-s food. dE 0ow do you find the product/ X Y >ery good X Y :ood X Y Average X Y .ad X Y >ery *ad

49,:it+
=N ;N

75N

>ery :ood :ood Average

;5N ;6N

.ad >ery .ad

#ut of 866 users+ ;5 users rate the R"E products average. It )eans if the co)panies i)prove the ,uality and taste+ the )arket for the R"E can expand or increase.

FOLLOWING TWO QUESTIONS ARE FOR NON-USERS OR BUYERS aE Which factors do affect for not consu)ing REA ! "# EA" food/ X Y 4o need X Y "aste X Y Relia*ility X Y &rice X Y $reshness X Y Guality Pro@:e5N 4o 4eed "aste Relia*ility =N ?N BN 5<N &rice $reshness Guality

76N

:enerally in India or in :ujarat+ )ost of the people don-t need to purchase R"E food. "hey don-t re,uire it that is why they do not purchase it. And 76N of the people *elieve that they are not fresh so they do not like to eat. *E Will you consu)e REA ! "# EA" $## pro*le)s are solved/ X Y !es X Y 4o X Y 'an-t say products in the future+ if the

'i::i;? To B9+
8BN !es 4o 57N ;6N 'anMt Say

when we ask respondents that if your particular pro*le)s regarding R"E food like high price+ poor ,uality etc.+ will you purchase it/ And )ost of the) were agreed to purchase it. $inally it can *e said fro) a*ove analysis that people who are un)arried+ who live alone and the fa)ily in which *oth hus*and D wife do the jo* consu)e Ready to Eat food. Still R"E food )akers need to do lot pro)otion to )ake people aware a*out their products and to penetrate the )arket they also have to reduce the price of their product.

A. SU((ESTIONS
As awareness of R"E food is less+ food co)panies should increase their pro)otional activities.

$ood co)panies should organiFe a food festival events in different cities to attract new custo)ers

$ood co)panies concentrate )ore on nuclear fa)ily *ut along with they should also concentrate on people who live alone.

$ood co)panies should try to reduce the cost of R"E food.

"hough the de)and for the ready1to1eat products is increasing in the glo*al )arket+ the supply is still not satisfactory. So food co)panies should increase their production capacity.

Guality is of para)ount i)portance for the growth of the R"E foods *usiness in India. So each food co)pany should concentrate on ,uality i)prove)ent of R"E food. &ackaging is also i)portant for R"E food to keep the food hygienic. $ood co)panies )ust follow the international nor)s for packaging. $ood co)panies should explore the new avenues for )arketing and distri*ution of R"E food.

CONC"USION
With the inco)e level rising+ de)and for )ilk+ )eat or fish+ fruits and vegeta*les is also increasing in India. With )ore ur*aniFation+ Indian fa)ilies also consu)e )ore processed foods+ )ore ready1to1eat foods+ etc. Asian A)ericans+ now nu)*ering over 86 )illion along with the other 8; )illion persons of India origin spread all over the world are a huge potential )arket for the R"E $oods out of India. "his creates a scope for the producers to co)e out with a long range of dishes including the usual )eals. India had *een at the forefront for variety of dishes *oth in do)estic and glo*al )arket. "oday the ready1to1eat products produced fro) India are )ostly on .as)ati rice &ulao+ .iryani+ and )any )ore South Indian dishes. $ood co)panies should increase the pro)otion of R"E food to create awareness a)ong people a*out the concept of R"E food and convince custo)ers a*out the )isconception a*out the added preservatives in R"E food. "here is great opportunity for Indian food co)panies to capture Indian food )arket as well as food )arket of other countries. "op food co)panies say the )arket is currently worth around Rs 56 crore in India *ut they confidently predict it will grow to around Rs 766 crore in the next one or two years. So there is a great future for food co)panies of India. al+ 'hanna+ Raj)a+ Spicy >egeta*le 'urry+ Mushroo)+ &aneer+ 'hicken+ .roccoli+ Sweets

ANNE1TURES
QUESTIONNAIRE Respected SirQMada)+ We+ the students of S. . PATE" INSTITUTE OF M(MT. 8 COMPUTER STUDIES, (AND!INA(AR are conducting a research on REA ! "# EA" $## )arket. We re,uest you to provide infor)ation re,uired in the ,uestionnaire. [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ 8. In which kind of fa)ily do you live/ X Y Loint fa)ily X Y 4uclear fa)ily X Y (ive alone 7. o you use or consu)e REA ! "# EA" food products/ X Y !es X Y 4o aE Why do you consu)e ready to eat food products/

3. If yes+ B FOR USERS OF READY TO EAT FOODC X X X X X X Y 4eed. Y "aste. Y Relia*ility. Y &rice. Y $reshness. Y Guality.

*E Which co)pany-s REA ! "# EA" food product do you consu)e/ X Y I"'. X Y M"R. X Y Satna) #verseas. X Y "asty .ites. cE 0ow )any ti)es do you consu)e REA ! "# EA" food in a )onth/ X Y 815 ti)es X Y 5186 ti)es X Y 86185 ti)es X Y More than 85 ti)es dE 0ow do you find the product/ X Y >ery good X Y :ood X Y Average X Y .ad X Y >ery *ad

eE Any suggestion for Ready to Eat food products. [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ [ 4. If no+ B FOR NON6USERS OF READY TO EAT FOODC aE Which factors do affect for not consu)ing REA ! "# EA" food/ X Y 4o need. X Y "aste. X Y Relia*ility. X Y &rice. X Y $reshness. X Y Guality.
*E Will you consu)e REA ! "# EA" $## pro*le)s are solved/ X Y !es X Y 4o X Y 'an-t say products in the future+ if the

cE Any suggestions for Ready to Eat food [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ [[

PERSONA" DETAI"S: 4a)e@ [[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[ Age@ [[[[[[[[[[[[[[Sex@ [[[[[[[[[[[ #ccupation@ [[[[[[[[[[[[[[[[[ Inco)e@ [[[[[[[[[[[[[[[[[[[[[[[ Marital status@ [[[[[[[[[[[[[[[[[[[

Thank Y !

BIB"IO(RAP!Y
'EBSITES: MA(ADINES: I'$AI journal of Marketing Manage)ent &I"'0 NE'SPAPERS: Econo)ics "IMES .usiness Standard www.indiainfoline.co) www.agriwatch.co) www.satna)overseas.co) www.itcportel.co)