♤ Increasing Penetration in Domestic Markets

Most of the processing units are export oriented and hence their penetration levels in the domestic market are low. For example:

o Penetration of processed fruits and vegetables overall is at 10 per cent

o The relative share of branded milk products especially ghee is still low at 2 per cent

o Penetration of culinary products is still 13.3 per cent and is largely tilted towards metros

o Consumption of packaged biscuits for Indian consumers is still low at 0.48 per cent while that for Americans is 4 per cent

However, there is increasing acceptance of these products amongst the urban population. India has a large untapped customer base and even a small footprint in the domestic market would enable the player to gain significant volumes. Acceptance in the domestic market and hence higher penetration is driven by the following factors: