Food Processing

Karnataka has a strong ecosystem of food processing industry and a well-established infrastructure of food parks and cold chain infrastructure

1 st

in production of Coffee, Ragi, Sunflower, Gherkins, Corn, etc

3 rd

highest state for poultry meat production

150+

operational cold storage units with 300k+ MT capacity

3rd

largest state in certified organic produce

1 st

in production of Coffee, Ragi, Sunflower, Gherkins, Corn, etc

3 rd

highest state for poultry meat production

150+

operational cold storage units with 300k+ MT capacity

3rd

largest state in certified organic produce

Incentives

Investment promotion subsidy at 35% of Value of Fixed Assets (Max- INR 65L)

Upto 100% exemption on stamp duty

Low concessional registration charges of 0.05%

Upto 100% reimbursement of Land conversion fee

100% exemption on entry tax for 3-5 years

100% exemption on electricity duty for 8 years

SGST reimbursement up to 80% for 5 years – Capped at 100% of fixed asset value

75% subsidy on cost of ETP (Max INR 50L)

6% interest subsidy on term loans for micro enterprises

100% exemption on market fee with respect to agri- procurement for 10 years

Upto 100% exemption on stamp duty

Low concessional registration charges of 0.05%

Upto 100% reimbursement of Land conversion fee

50% subsidy on cost of ETP (Max INR 1 Cr.)

100% exemption on electricity duty for 8 years

SGST reimbursement up to 80% for 5 years – Capped at 100% of fixed asset value

100% exemption on market fee with respect to agri- procurement for 10 years

New initiatives & opportunities

Agricultural implements manufacturing cluster

Agricultural implement manufacturing cluster in Bidar to foster innovation and product diversification

Pradhan Mantri Kisan Sampada Yojana

$1 Bn package to modernize food processing infrastructure with financial assistance for
Mega food parks - $7 Mn per project, up to 50% of cost
Cold chain infrastructure - $1.4 Mn per project, up to 35% of cost
Agro processing clusters; Projects to create forward/backward linkages for farmers - $1.4 Mn per project, up to 35% of cost
Food safety and Quality assurance infrastructure, up to 25% of cost

Recent legislative changes

Removal of restrictions for farmers on selling agri-produce outside notified APMC market yards
Framework for protection and empowerment of farmers regarding sale and purchase of farm products
Removes agricultural commodities from list of essential commodities – easing restrictions on stocking food produce

Infrastructural support

4 upcoming food parks besides many other growing opportunities in warehousing, logistics and cold storage.

Sector Champion

Sanjay Sharma

CEO & Director

MTR Foods Private Limited

[email protected]

MTR's tradition of food and hospitality began in 1924 with the establishment of the MTR Restaurant by the Maiya family in Bangalore. MTR's wide range of products include ready-to-eat curries and rice, gravies, frozen food, ice-cream, instant mixes, spices, a variety of pickles & papads, and milk beverage drinks. To fuel further growth, MTR became part of the Nordic conglomerate, Orkla, in 2007. Post this joint venture, MTR Foods has taken major steps to revitalize its brand appeal and establish its presence in the homes of modern consumers across India. With an all-new brand presence and a unique brand identity, MTR Foods seeks to own the instant food category in the rest of India; with Spices as a constant focus in the southern regions.

Hemant Malik

Divisional Chief Executive, Foods Division

ITC Limited (Foods Division)

[email protected]

ITC's Foods brands delight millions of households with a wide range of differentiated products developed by leveraging ITC's in-house R&D capabilities, relevant consumer insights, a deep understanding of the Indian palate, its agri-sourcing & packaging strengths, innovative communication and an unmatched distribution network. The business continues to invest in every aspect of manufacturing, distribution and marketing to ensure that it can leverage emerging opportunities and fulfill its aspiration of being the most trusted provider of Branded Packaged Foods in the country.

Growth drivers

Well-established infrastructure

110 acre integrated mega food park, 5 food parks with 4 more upcoming and ~150 operational cold storage units with a capacity of 300k+ MT

Strong base of raw materials

Karnataka produces 70% of India’s coffee, 60% of India’s Ragi and is a top producer of other crops such as Tomatoes, Sunflower, etc

Drip-to-Market Agro corridor

Ramthal Drip-to- Market Agro Corridor (DMAC) is the largest drip irrigation project by the Government of Karnataka and 2030 WRG (World Bank subsidiary)

Established market linkages

285 FPOs, 22 PPP-integrated horticulture projects, 14 federations of organic farmers, 535 sheep and wool producer’s cooperatives.