Background
Global 25 July 2014

India: the land of agri-business opportunities

India’s consumer spending on food has almost doubled in the last decade, and is estimated to increase by 2.7 times in the current decade. After rice and wheat, potatoes are the third most-produced crop.

Changing consumption

Potatoes are an important ingredient of most Indian dishes. In addition, changing consumption patterns are clearly evident.

The annual growth in the consumption of French fries and crisps of over 25% shows the increased potential for potato products.

Favourable conditions for Agri-food growth

Fuelled by consumer growth and changing eating habits, retail prices of potatoes have doubled in the last decade. Production has risen from 22 million tons in 2001 to 45 million tons in 2012, a vivid indication of the rise in consumer spending on potato products. Conditions are now extremely favourable for investment in and/or establishing Agri-food businesses on the Indian sub-continent.

Changing eating habits as seen in the streets of Delhi, India (image: Paul Prescott / Shutterstock.com)
Changing eating habits as seen in the streets of Delhi, India (image: Paul Prescott / Shutterstock.com)

HZPC & INDIA

The Indian market is strategically important for HZPC. It is not only a fast-growing market with great potential, it also has an urgent need for new potato varieties and good quality seed. HZPC has taken the initiative to enter this new and fast-growing market. The favourable economic conditions and the projected development of the food and potato sector offer excellent prospects for strong growth. HZPC is determined to maximise this opportunity.

More about the development of India in the past two decades
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India’s decision in 1991 to liberalise the economy and to bring major economic reforms has opened doors for new ventures and foreign direct investments. 

This resulted in an impressive annual growth of 5%-6% in the first decade after liberalisation. Thanks to political stability and a global boom, the annual growth has increased with over 6% in the second decade.

 

This second decade has provided enormous opportunities for businesses and entrepreneurs, as well as for the working population. The rapid rise of the Indian middle class has made the country the third largest in purchasing-power parity. 

The National Council for Applied Economic Research estimates an increase to 546 million middle-income Indians in 2025 - 2026. This continued increase in employment and in individual wealth will fuel increased consumer spending at both ends of the scale; consumer goods and food products.

Press conference
Mahindra Agribusiness & HZPC create a 60:40 JV
  • HZPC is one of the leading players in Seed Potato in the world
     
  • To enhance farmer prosperity by increasing productivity and better price realization
     
  • To offer best quality seed potatoes to farmers in India and overseas
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Promising varieties India