The confectionaries, beverages and fast food segment are
growing at a rapid pace throughout the country. Technological revolutions in processing and packing of food products, coupled with fast growing inland and export markets present a very good potential for investment in these sectors.

Potential of this industry in the state:

• Demand for fast foods and ready to eat meals in the state have recorded a steep rise with the change in modern living patterns. This demand as projected would continue to rise and hence any investment in this field would be lucrative.

• Bakery products are in high demand and have reached interior villages.

• Chocolates, Confectionaries, Noodles, Macaroni, Vermicelli and packed breakfast cereals are also in high demand.

• Players like Bikaner Bhujiawala and Haldirams have developed quality products and raised the traditional local snack items into big business status including export to neighbouring countries.

All these signify a high scope for investment in these sectors.

Size and Status of this industry:

• There has been a substantial investment in this sector since the liberalisation. The foreign investment in this sector was lump sum.

• The two global majors, PepsiCo and Coca-Cola dominate the soft drink market in India. In West Bengal, both PepsiCo and Coca-Cola have bottling plants. These units cater to the demand in the state and also in the neighbouring north-eastern states.

• The bakery industry in India is the largest among the processed food industries, production of which has been increasing steadily in the country. The bakery products include bread, biscuits, pastries, cakes, buns etc. The two major bakery industries are bread and biscuit, which account for about 82% of the total bakery products. But most of this bakery industry is dominated by a large number of  players in the unorganized sector.

Policy & Regulations for Packaged/Convenience Foods:

• Packaging laws covered under Standards of Weights and Measures Act, 1976 and the Standards of Weight and Measures Rules, 1977.

• Prevention of Food Adulteration Act, 1954 and the Prevention of Food Adulteration Rules, 1955 specify food adulteration/contamination norms.

• Agmark Rules relate to quality specifications-foods like edible oil, nuts, honey etc.

• Industry is delicensed and automatic approval for foreign investment up to 51%-except for items like malted food that is reserved for the small-scale sector. Setting up 100% EOUs requires specific government approval.