Powder & Bulk Solids

Indian Powder and Bulk Solid Handling Suppliers See Sunny Days Ahead

The Economy to Watch in 2012

04/16/2012 | Autor / Editor: MARCEL DROETTBOOM / Dominik Stephan

Today’s investors and users critically examine merits of different powder and bulk solid handling technologies to pick the best one. (Picture: PROCESS India)
Today’s investors and users critically examine merits of different powder and bulk solid handling technologies to pick the best one. (Picture: PROCESS India)

Huge measures have been undertaken in the past few years to push India’s economic development, and this is unlikely to change in the future. Although a lot has been achieved by the world’s largest democracy, there is still enough left to do. This creates a huge business potential for foreign investors and industrial enterprises alike. Increasing growth momentum in several user industries is opening up a new vista for the Indian powder and bulk solid handling equipment manufacturers and suppliers.

For Edward Bland, Head of Investment Research at Duncan Lawrie Private Bank, India is the economy to watch in 2012. Even though the Indian economy has been affected by the continuing crisis in the Eurozone to some extent, it still ranges among the fastest growing economies in the world and offers the best prospects for long-term investments.

This is also the view expressed in the report of the United Nations, titled “World Economic Situation and Prospects 2012”. According to this report, South Asia, and thus India, is expected to remain fairly resilient to

the global economic downturn and sustain its growth momentum.

One of the most important factors for the continuing economic development of India can be found in the country’s extremely positive demographics with its large number of young, well educated people and a free-spending, growing middle class, who, according to the McKinsey Global Institute, is expected to reach a number of 580 million people in 2025 from 50 million people in 2005. The large number of people living in India forms the basis for a continuing growth of the full range of industries, including food processing, plastics and rubber, or power generation and distribution

High Potential in Food Processing

Due to India’s high population – approximately 1.2 billion people – the country’s market potential for food processing is particularly great. Per year the country produces 230 million tonnes of grains, 110 million tonnes of milk and 150 million tonnes of fruits and vegetables. Food processing of the worldwide second largest producer of agricultural products is still at an early stage of development.

According to the Boston Consulting Group, spending for processed food in India currently amounts to approximately US$ 40 billion and could increase to US$ 300 to 350 billion in 2020. This development will be pushed by the repeatedly delayed opening of the so called multi-brand- retail industry. To achieve this goal, significant amounts of money will have to be invested over the coming years in infrastructure as well as in food processing and packaging machines.

The Indian government has started a number of initiatives to rush the development of the food industry. This includes the construction of so-called Mega Food Parks and accompanying infrastructure for packaging, transport and cooling with support from the private sector. According to the ‘Vision 2015’ programme, more than US$ 25 billion will be allocated to the food sector and necessary infrastructure.

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