As we know, India continues to be a high growth economy and a significant portion of this growth comes from FMCG sector particularly consumer product companies. Earlier, the consumption of packaged / processed food products was confined to urban population but now slowly with the rising literacy and income levels of rural population; the market for ready food products has expanded to smaller towns.
India’s Food Processing Industry is one of the largest industries in the country – it is ranked ﬁfth in terms of production, consumption, export and expected growth. The Indian food industry is estimated to be worth over US$ 200 billion and is expected to grow to US$ 310 billion by 2015. India is one of the world’s major food producers but accounts for only 1.7 per cent of world trade in this sector – this share is slated to increase to 3 per cent by 2015.
Food processing industry has been growing at over 13 percent despite the global slowdown. And now the government is aiming to double the turnover in the next ﬁve or six years by setting up mega food parks to attract global capital. The future of the industry looks bright, as the Government of India has taken several measures for developing this industry.
Hidden Gem Stock of April 2014
Our Hidden Gem stock of Apr'14 belongs to food processing industry. Our team has followed Walter Schloss priniciple's while finalizing Hidden Gem stock of the month. Walter J. Schloss (August 28, 1916 – February 19, 2012) was a well-regarded value investor, as well as a notable disciple of the Benjamin Graham school of investing.
2. More than 60% of revenue is coming from exports and company operating margins have seen significant improvement in current financial year compared to last 3 years.
5. Promoters share holding is well above 50% since last many years which is good by all means for such a micro cap company.
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