The food processing industry has emerged as a clear winner when it comes to attracting foreign inves- tment into the sector. While the total FDI into India dipped marginally, foreign capital in the food processing sector in the period April to December period (2009-10) has more than doubled.
Total FDI has dipped marginally to $20.9 billion, compared with $21.1-billion FDI inflow that the country received in the corresponding period last year.
From April to December, FDI inflow in food processing sector was Rs 937 crore as compared to Rs 455 crore during the financial year 2008-09. The major investments that came India?s way during this period include PepsiCo Panimex investing in PepsiCo India Holdings in two installments of Rs 243 crore and Rs 244 crore each.
While explaining the reason for the hike in investments, Amrit Lal Meena, joint secretary, ministry of food processing industries said, ?The fiscal benefits that have been accorded to this sector in the last five years have made this sector highly investment friendly. Besides, the rich agro climatic diversity and availability of raw materials for a longer period allows tremendous scope of processing as a result there is a huge potential in this sector.?
Other significant investments include, Nissin Foods (Asia), which invested Rs 50 crore in Bangalore- based Indo Nissin Food during the current fiscal. Other major investments during this period are? Lotte Confectionary invested Rs 23 crore and Rs 7 crore in Delhi based Lotte Foods in two installments, Shoprite intel invested Rs 20 crore in Megasave Trading ltd. More investments were seen during this period? Unibic Mauritius invested in Unibic Biscuits in several installments of Rs 3 crore, Rs 8 crore, Rs 2 crore, Rs 5 crore each during the current fiscal. India Business Excellence Fund invested Rs 7 crore in Parag Milk Foods.