Game: Battleground India

Origin of the game

The game context was developed at the Supply Chain Management Center of the R.H. Smith School of Business of the University of Maryland, College Park by Dr Rajesh K Pillania, who was a Visiting Scholar in the period March-April 2007 from the Management Development Institute (MDI) in Gurgaon, India. The case development project was headed by prof. Sandor Boyson and prof. Thomas Corsi of the Supply Chain Management Center.

 

Indian Processed Food Opportunity: An Overview

Indian Processed Food Industry is a huge opportunity for the world, may be bigger than the IT and other outsourcing opportunity. Government of India has identified it as a Priority Sector and providing support for the development of this sector. Many MNCs have already entered or in the process of entering in the Indian processed food market. The size of the processed food market in India is estimated to be USD 102 billion ; that includes USD 62 billion market in the primary processed food (packed fruits and vegetables, packed milk, unbranded edible oil, milled rice, flour, tea, coffee, sugar, pulses, species and salt), and USD 40 billion market in the value added foods (processed fruits and vegetables, juices, jams, pickles, squashes, concentrate, processed dairy products such as ghee, paneer, butter, branded edible oil, biscuits, snack foods, pasta based foods, processed meat, poultry and marine products, confectionary and chocolate, alcoholic beverages, etc.

 

India as a Food Supplier

  • 2nd largest arable land in the world
  • Diverse agro-climatic zones
  • Potential to cultivate a vast range of agricultural products
  • Third largest producer of food in the world after US and China.
  • Leading producer of various agriculture produce e. g. The largest producer of milk, pulses, sugarcane and tea in the world; The 2nd largest producer of wheat, rice, fruits and vegetables in the world (Source: Investment Commission of India, website http://www.investmentcommission.in/food_&_agro_products.htm)
  • Agricultural production is increasing faster than the population and is targeted to double in next ten years.
  • Large marketable surpluses and abundant raw material for processing
  • Vast pool of skilled manpower in research and extension
  • With relaxing trade norms under WTO, it can emerge as one of the leading food supplier to the world

     

India as a Food Consumer

  • Population of 1.08 billion, growing at approximately 1.65 per annum
  • India consumes about $200 billion worth of food products p.a.; 53% of this is processed food – mostly primary processing (Source: Investment Commission of India, website http://www.investmentcommission.in/food_&_agro_products.htm)
  • Food and food products account for 53% of the value of final private consumption estimated at INR 8600bn (2003-04 at current prices).

     

The Constraints in Indian Food Opportunity

  • A long and fragmented supply chain
  • Low level of domestic demand for processed food
  • High cost of processed foods due to the cost and quality of farm produce, infrastructure, credit, processing, packaging long and fragmented supply chain etc.
  • Lack of competitiveness of Indian food products in the global market. Its share in global agricultural exports is only 1.8 % and constitutes mainly of commodity and primary processed items where the price realization is low.
  • Regulatory distortions
  • Huge wastages (almost one third of  fruits and vegetables are destroyed due to lack of various infrastructure facilities or poor handling or hygiene conditions)
    (Source: Ministry of Food Processing Industry, Govt. of India, Vision 2015 Report)