Buy food processing scrips.

FDI in 2010 in the food processing sector has gone up by 175%. France, Germany and Canada are investing in the highly potential food processing sector in India.

We suggest you buy food scrips at declines. Wait for the market to bottom out and buy these scrips !


The major food scrips are


Nestle India Ltd
Cadbury's India Ltd
Kelloggs India
Hindustan Lever Ltd
ITC-Agro
Godrej Foods
MTR Foods Ltd
Amul
Ruchi Soya
Brittania
Marico
Tata Tea
Dabur

etc

Amul's turnover is more than 1.7 billion USD. ITC Foods' Ashirvad and Sunfeast brands have already captured the market. MTR Foods is a good buy. It has been acquired by ORKLA. One need not unduly highlight the potential of the MNC scrips like Cadbury's, Nestle and Kellogs !

Still there are many challenges for the Indian f p industry. After the success of the Green and White revolutions, India became a major provider of foodgrains, fruits, vegetables and milk. But his success was not matched by developments in supply chain management and in new technologies for the preservation, processing and storage of food. More than 70% of fruits goes waste due to lack of infrastructural facilities, lack of cold storage units and warehouses. Near starvation and pockets of shortages, substantial wastage due to spoilage, quality deficiencies and inadequate returns to farmers characterise this sector.

The Indian F P Minister told the Western powers " We have the raw material, you have the technology. So please invest in India " He is right, as India produces 13% of the world's vegetables and 10% of the world's fruits !.

At the moment, India needs an investment of $30 b in this sector. Rising incomes for the middle class, rising urbanisation, rising dual income households, all point out to the fact that the numero uno industry for India will be food processing !

In Financial Astrology, Jupiter rules fruits and vegetables. His placement in the 9th does augur well for this industry. So you can invest in these scrips, when the market reacts sharply ! Buy cheap, sell dear !