September 6, 2013
Industrial consulting company ADM Technologies is setting up a 50:50 joint venture with Germany's BANSS for a meat processing technology unit which is likely to be formalised by November.
"Driven by disposable incomes, the meat industry has been growing. India currently exports about two million tonnes of meat annually. The domestic industry is also growing, but it is still highly disintegrated," said Debroto Mukherji, Managing Director, ADM Technologies.
BANSS supplies meat processing systems, storage and cooling room transport systems for cattle, goat and sheep. Mukherji said almost 500 meat processing units are expected to come up in the country.
The two firms will install the technology on a build-operate-transfer basis. BANSS has already installed its systems at the Ghazipur slaughterhouse in the Capital.
Mukherji said the joint venture is looking at establishing five such units in the country. The company expects to mop up revenue of INR600 million (US$9.1 million) over the next three years.
ADM said it may also look at establishing a unit to manufacture machinery. "We have zeroed in a location in the South to manufacture machinery. Even when the machines are imported, there will be about 10% localisation," he added.
According to a recent Technopak report, Growth and trends in vegetarian and non-vegetarian consumption in India, the non-vegetarian food market for sections A and B in the top 120 cities will grow from INR62.5 billion (US$949 million) to over INR110 billion (US$1.7 billion) by 2020.
The report says the growth has been triggered by higher incomes, increase in nuclear and double-income households seeking convenience, and Western influence in taste and lifestyle.