A

COMPREHENSIVE PROJECT REPORT

ON
READY TO EAT FOOD INDUSTRY

Submitted to
(ShrEE sahajanand institute of management)
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

In

Gujarat Technological University

UNDER THE GUIDANCE OF
Mr. Birju K. jani
Submitted by

Ms. Dipal jani

saiyad
Batch : 2011-13,
En.No.: 117610592018

Mr. Khalid
Batch: 2011-13
En. No.: 117610592069

MBA SEMESTER III/IV

(ShrEE sahajanand institute of management )

Bhavnagar.
1

Students Declaration

We, Dipal Jani & Khalid Saiyad, hereby declare that the report for
Comprehensive Project entitled
READY TO EAT FOOD INDUSTRY
is a result of our own work and our indebtedness to other work
publications ,references, if any, have been duly acknowledged.

Place: Bhavnagar.

Dipal Jani

Date: 20/12/2012.

Khalid Saiyad

Institutes Certificate

Certified that this Comprehensive Project Report Titled

READY TO EAT FOOD INDUSTRY is the bonafide work of
Ms. Dipal Jani (Enrollment No:- 117610592018) and Mr.
Khalid Saiyad (Enrollment No:- 117610592069), who carried
out the research under my supervision. I also certify further,
that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation
on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate.

Signature of the Faculty Guide

(Mr. Birju K. Jani Assistant Professor)
(Certificate is to be countersigned by the Director/HoD)

Preface
In every professional course, training is an important factor. Students gain
theoretical knowledge of various subjects in their respective colleges but they
are practically exposed to such subjects when they get the training in any
organization.
It is only through training that I came to know what an industry is and how it
works. I learnt about various departmental operations and how each
department plays its role in aiming for the general goal of the company in the
industry, which would help me in the future when I will go for my job or will start
my own business.
During the whole training I got a lot of experience and came to know about the
management practices in real and how it differs from the theoretical knowledge
that we have studied in our classes.
In todays globalized world, where cut throat competition is prevailing in the
market, theoretical knowledge is not sufficient. Besides this, one needs to have
practical knowledge, which would help the individual in his/her carrier activities.

ACKNOWLEDGEMENT
4

At the very outset of this report with all our due respect and regards
we take this privilege to extend our sincere thanks to all those who
helped us during our project.

We are highly grateful to our director MR. J.M.Sanghani who gave

us the opportunity to carry our project as a part of course in READY
TO EAT FOOD industry. Indeed this project has really enhanced our
knowledge in the field of READY TO EAT FOOD Industry.

We are also thankful to Prof. Birju jani and our institute SIM. Lastly
we want to thank all the people who gave their support directly or
indirectly to make this project successful.

Declaration
5

We undersigned Dipal jani and khalid saiyad a students of MBA 3 rd

semester declare that

we have prepared this project report on

READY TO EAT FOOD INDUSTRY under Mr. Birju jani (Project

guide) of shri sahajanand Institute of Management Bhavnagar we
also declare that this project report is our own preparation and not
copied from anywhere else.

This is in accordance with syllabus & guidelines of GTU.

__________

__________

Dipal jani

Khalid saiyad

En no.: 117610592018

En. No.: 117610592069

Executive Summary
6

We Indians are extremely fussy about the food we eat, and hate to compromise
on taste and quality. So, we like our vegetables with the same taste for years
together, perhaps just like it was in our childhood, which put in other words
means that, for us, theres no substitute for homemade food.
But have we ever given a thought to how much time we spend in cooking? How
many toils go behind the exotic fares that a woman prepares for her family?
Innumerable hours are spent on every mouth-watering dish. Cutting this,
chopping that, roasting, grinding, frying. Etc.! Cooking is indeed a full time
occupation.
But todays woman, with so many demands on her time, simply cannot afford to
spend a whole day in the kitchen. At the same time, in no way is she willing to
substitute her ways, for the fear that quality and taste may be compromised.
Now people have discovered the joys of a simpler, faster and fun way of
cooking traditional Indian food. As nuclear families proliferate in urban India,
the ready-to-eat market is set to grow. Its a food revolution thats been a long
time coming.
As double-income nuclear families become the norm in urban India, everyone
who is anyone in the food business has been eyeing the ready-to-eat food
sector with considerable hunger.
Top food companies say the market is currently worth around Rs 50 crore in
India but they confidently predict it will grow to around Rs 200 crore in the next
one or two years. So there is a great future for food companies in India.

Industry overview

India has made lot of progress in agriculture & food sectors since independence in terms of
growth in output, yields and processing. It has gone through a green revolution, a white
revolution, a yellow revolution and a blue revolution.
Today, India is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the
world, the second largest producer of wheat, vegetables, sugar and fish and the third largest
producer

of

tobacco

and

rice.

The RTE market in India has been a new concept which is in its nascent stage. The market
has huge potential for growth by tapping a larger consumer base. The changing perceptions
of the rich and the upper middle class with a rise in their disposable income have driven the
market.
The report begins with an introduction to the Ready to eat (RTE) market and different
segments of RTE market. This is followed by a market overview indicating the market size
and

historical

growth

of

the

market.

Now the time is to provide better food processing & its marketing infrastructure for Indian
industries to serve good quality & safest processed food like ready to eat food.
It is opening a new window in world scenario as far as taste & acceptance is concerned.
Therefore, Indian Government is providing more infrastructures for this sector. Excise duty is
now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This
allows manufactures to bring down their prices & spreads its flavors to the world.
The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is
expected to expand to reach Rs. 2900 crore by 2015, according to an analysis done by Tata
Strategic Management Group (TSMG).

Growth and Evolution of Industry in India

8

Cooking is an inseparable part of a culture. Various recipes emit the aroma of culture that is
unique for a region. No wonder then that various cultures have developed their own cooking
methods and own recipes that have become their identities.
Cutting across the geographical and political barriers these recipes bind the entire human
population in a single string. It is these tongue-ticking recipes that come to our mind first
when we think about a particular culture.
We are living in an era when fast foods have become an order of the day. Do you remember
those days when cooking used to be a leisurely affair? Of course, the long wait for meal
would pay sweetly in the end. Along with good taste and relishing appearance your mother
would always ensure that food was healthy too. In fact, mothers have to make a never
ending search for healthy and exciting food.

Apart from regular cooked food, there are a number of food items that can be cooked once
and stored for long without being spoiled. Tomato ketchup is perhaps the most popular
ready-to-eat food item. You might have tried to make tomato ketchup at home but could not
have achieved that professional perfection.
In fact, preparing tomato ketchup requires something more than just a simple desire to make
it.First you need choicest tomatoes picked fresh from farms. Then cooking requires perfect
blend of spices and optimum level of thickness so that the stuff can have some shelf life. All
these things cannot be achieved unless you are a trained cook.
Nowadays, a number of food processing companies market high-quality tomato ketchups.
Their preparations not only have superior taste but also hold the nutritional value of the
ingredients. Not only this, their products do not contain any artificial preservative too, which
could be a potential health hazard.
Next to ketchups are sauces. Pricewise, sauces are somewhat cheaper but taste wise they
are too the best bets. Some cynics claim that tomato sauces contain fillers to enhance their
appearance and taste. Besides, they also contain chemical preservatives.
But the fact is, companies involved in the manufacturing of sauces, are putting more
emphasis on natural ingredients. Besides, organic farming has also come to stay, which
excludes any possibility of chemicals entering our food chain.
Recently a number of companies have introduced ready meals for a number of food items
ranging from idli, dosa, dal, chawal, and even chole bhature. Even desserts and Sweet
dishes are available in ready meals formats. By following the simple instructions on the pack
one can make delicious snacks and desserts to delight their family in minutes. These ready
meals are not just food packets only.
They bring the taste, the aroma and flavour of a particular culture to your dining table. Thus,
you can relish the taste of Gulab Jamun, idli, dosa, Rajma, Dal Makhani, Awadhi Dal fry or
Punjabi chole right in your home at the dining table.
Last but not least are the fruit juices. Different regions within a country like India and also
across the globe grow their unique variety of fruits. So far you only have heard their names
or seen them in picture books.

INDIAN FOOD INDUSTRY

10

The food industry is on a high as Indians continue to have a feast. Fuelled by what can be
termed as a perfect ingredient for any industry large disposable incomes the food sector
has been witnessing a marked change in consumption patterns.
Increasing incomes are always accompanied by a change in the food basket, says an ICRA
report, which analyses food expenditure patterns over the last three decades in India. The
report observes that the proportionate expenditure on cereals, pulses, edible oil, sugar, salt
and spices declines as households climb the expenditure classes in urban India while the
opposite happens in the case of milk and milk products, meat, egg and fish, fruits and
beverages.
For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined
from 45 per cent to 44 per cent in rural India while the figure settled at 32 per cent of the
total expenditure on food in urban India.
A large part of this shift in consumption is driven by the processed food market, which
accounts for 32 per cent of the total food market. It accounts for Rs 1,280 billion (US$29.4
billion), in a total estimated market of Rs 3,990 billion (US$91.66 billion).
The popularity of READY TO EAT food packs and the bottomlines of eateries have a story to
tell. Eating out no longer marks a special occasion.
Not only does the traditional eat-at-home type prefer to eat out, he is very demanding too.
He wants value for his money in terms of quality and variety. No wonder, multi-cuisine
restaurants are mushrooming even in small towns. Italian, Mexican, Lebanese, Japanese,
and Cajun the list is growing.
Corroborating this trend, Euro monitor International, a market research company, says the
amount of money Indians spend on meals outside the home has more than doubled in the
past decade, to about US$5 billion a year, and is expected to double again in about half that
time.
Another interesting trend noticed in consumer patterns is the growth of branded products.
The branded food market is on a roll. It grew over 5 per cent in 2004, according to the latest
ACNielsen Global Services report on global trends in food and beverages.

11

That makes food an attractive proposition for investors. Savvy companies have pumped in
more than Rs 60,000 crore (US$13.78 billion) in new food and farm businesses in 2004.
According to industry estimates, 321 private sector projects worth Rs 60,360 crore
(US$13.86 billion) were announced in 2004 compared to 89 with an investment of Rs 2,130
crore (US$489.3 million) in 2003. The popularity of food and agro products is not surprising
when the sector is now offering a growth of more than 150 per cent in sales. With such
promise in the sector, a number of foreign companies have joined the fray.
While US brands such as McDonalds, Pizza Hut and Kentucky Fried Chicken have become
household names, more are on their way. The US$7 billion US soups-to-juices company,
Campbell, is planning an entry into India..
The new wave in the food industry is not only about foreign companies arriving here
attracted by the prospective size of the market. It is also about the migration of the Made in
India tag on food products travelling abroad.
Indian food brands and fast moving consumer goods (FMCGs) are now increasingly finding
prime shelf-space in the retail chains of the US and Europe. These include Cobra Beer,
Bikanervala Foods, MTR Foods' ready-to-eat food stuff, ITC's Kitchen of India and Satnam
Overseas' Basmati rice.

.
.

Overview of World Market

Ready to eat (RTE) products refers to food products that have undergone a pre-cooking or
pasteurization process before freezing and are normally sold frozen or chilled products.
12

These products are normally heated only just before serving but these are largely used as
ingredients for industrially manufactured RTE entrees sold mostly in retail stores or catering
service establishments in EU.
Popular products under this category being steam cooked, breaded and fried shrimp and
chicken. Other products include meat, fish and shrimp balls, sausages and other meat- or
shrimp-containing products.
Most are not hermitically sealed so, it is very important that their thermal process,
packaging, handling before and after process and storage are strictly controlled to ensure
that they are free of any spoilage and pathogenic organisms and are protected from other
potential cross contaminants.
One of the advantages of cooked then frozen products is that the risk of microbiological
contamination as well as the risk that they might serve as vector for transmitting avian flu or
other disease outbreak in Asia to importing countries is greatly reduced.
It also could implicate future fate of the business as trust between business partners will be
marred once such an unfortunate food safety-related incident goes uncontrolled,
Considering that our major RTE food products are shrimp and chicken, which are both in the
high risk product category, strict food safety management implementation is therefore
required and validation of the cooking process , a mandatory quality assurance necessity to
both processors and quality system implementers.EU has a very strict food safety
regulations requiring that all exporters are registered and authorized by the competent
authorities before they are allowed to export to EU.
To get authorized by the competent authorities however, food manufacturers need not only
implement good hygiene practice and be in conformance with the food safety regulations but
also they need to pass the periodic quality assurance and safety management system
audits.

As such, Good Manufacturing Practice (GMP) and HACCP are absolutely a must. Validation
of the critical points and verification of the systems effectiveness in the final product are
important aspects in the implementation of the quality system.
13

As such, manufacturers need data or evidence to show that due diligence was practiced to
ensure the safety and quality of their products, Data that competent authorities and auditors
might ask from processors/exporters include: data demonstrating that heat for pre-cooking
process are correctly designed and applied and a valid certification that hygiene standards
are maintained after the cooking process to minimize re-contamination.
These requirements for HACCP certification, has kept processors struggling to meet all
documentation requirements owing perhaps their lack of knowledge, technical staff or simply
the in availability of this service from the existing local service providers.
To respond to their need, NFI felt that it is their mandate to support and fill that gap by
providing them the necessary training and technical services that they need to be
competitive in the world market.

Overview of Indian Market

Does the idea of cooking an elaborate meal after a long working day bother you? Do you
fancy experimenting with delicacies native to various parts of India at home? Do you wish to
match up to your mother-in-laws legendary culinary skills? Does the idea of having
unexpected guests give you living nightmares? If yes, then a Ready-To-Eat (RTE) food pack
might

just

be

what

you
14

are

looking

for.

Though steaming hot Mutter Paneer and Dal Tadka continue to grace Indian tables, many
today choose to take the easier course. For a generation of Indians who are increasingly
pressed for time, the growing availability of a variety of RTE foods across India is being
considered

viable

option.

"Emerging Opportunities in the Indian Ready-to-Eat Foods Market" - a recent consumer

insight report published by Data monitor, predicts that the RTE foods market in India which
was mainly driven by the export demand until recently, has matured to a stage where there
is

tremendous

potential

for

growth

over

the

next

few

years.

In 2009, Indian RTE foods market was estimated to be around $33.5 million, registering a
CAGR

of

approximately

15%

over

the

last

five

years.

At present, RTE foods with normal shelving, i.e., canned RTE foods that require no
refrigeration, alone contribute to approximately 60% of the total market. "For a product,
which predominantly depended on the export markets to strike a chord with both the rising
popularity of Indian cuisines and the burgeoning Indian Diaspora across the globe, the
recent rise in demand in the local market is a substantial one," commented Pinaki
Mukherjee,

lead

consultant

with

Data

monitor

India.

The role of women in an urban Indian family has undergone a massive transformation.
Women today have very little time to involve in regular household chores like cooking. This
factor is predominantly driving the growth of convenience foods such as RTE in India. "With
the increasing involvement of women in India's labor force, rising number of nuclear families
and a desire to maximize "me" time, the Indian RTE foods market size is poised to double by
2014,"

Mukherjee

said.

Lifestyle changes have necessitated modifications in most urban Indians' diet regime in
terms of meal time fragmentation and diet diversification. With these changes, it has
increasingly become a challenge for Indians to maintain a diet that is balanced and
convenient, yet caters to the Indian taste buds.
The desire to eat fresh food among Indians is currently so prominent that it even
overshadows the desire for consumers to seek variety and authenticity. This was
corroborated by the findings of the recent Data monitor consumer survey, where consumers
across all the age groups said that they value 'Freshness' claims more than authentic and
15

originality.
While most RTE manufacturers promote quality claims on packaging, no one has made
attempts to break the unhealthy perception of packaged food by highlighting that the retort
packaging used in RTE foods can help in retaining the nutritive value and freshness of the
product.
There is a need for Manufacturers to focus on making assurance of freshness as a key
component

of

their

marketing

efforts

to

increase

the

uptake

of

RTE

foods.

In the process of tapping the RTE food market, manufacturers need to identify potential
opportunities in terms of novel product concepts and packaging formats.

Growth of the industry

Emerging Opportunities in the Indian Ready-to-Eat Foods Market a recent consumer

insight report published by Data monitor, predicts that the RTE foods market in India which
was mainly driven by the export demand until recently, has matured to a stage where there
is a tremendous potential for growth over the next few years.
In 2009, Indian RTE foods market was estimated to be around $33.5m, registering a CAGR
of approximately 15% over the last five years. At present, RTE foods with normal shelving,
16

i.e., canned RTE foods that require no refrigeration, alone contribute to approximately 60%
of the total market.
For a product which predominantly depended on the export markets to strike a chord with
both the rising popularity of Indian cuisines and the burgeoning Indian Diaspora across the
globe.
The role of women in an urban Indian family has undergone a massive transformation.
Women today, have very little time to involve in regular household chores like cooking. This
factor is predominantly driving the growth of convenience foods such as RTE in India.
With the increasing involvement of women in Indias labor force, rising number of nuclear
families and a desire to maximize me time, the Indian RTE foods market size is poised to
double by 2014, said Pinaki.
Lifestyle changes have necessitated modifications in most urban Indians diet regime in
terms of meal time fragmentation and diet diversification. With these changes, it has
increasingly become a challenge for Indians to maintain a diet that is balanced and
convenient, yet caters to the Indian taste buds. The desire to eat fresh food among Indians is
currently so prominent that it even overshadows the desire for consumers to seek variety
and authenticity.
While most RTE manufacturers promote quality claims on packaging, no one has made
attempts to break the unhealthy perception of packaged food by highlighting that the retort
packaging used in RTE foods can help in retaining the nutritive value and freshness of the
product. There is a need for Manufacturers to focus on making assurance of freshness as a
key component of their marketing efforts to increase the uptake of RTE foods.

Health concerns on part of the consumers also pose difficulty to the RTE manufacturers.
With a larger number of Indians making a conscious attempt to eat healthy, they are on a
look out for health claims like low cholesterol and trans-fat free tagged to the product.
The Data monitor consumer survey lent credence to this phenomenon, wherein it was found
that low or lowers cholesterol and low or reduced fat has a high level of influence on 50%
of the Indians choice of food and beverages. Since most RTE foods in India have a
considerably high amount of fat in their formulations, manufacturers have to address this
17

issue by aligning their offerings to appeal not only to the consumers palette, but also to their
desire to eat healthy.
In the process of tapping the RTE food market, manufacturers need to identify potential
opportunities in terms of novel product concepts and packaging formats. Given the diversity
of regional cuisines and the increasing nature of Indians to experiment with respect to their
dietary choices, Data monitor foresees a lot of untapped opportunities for the manufacturers
to cater to in the future. Combo meal concepts which are microwaveable, for instance, would
increase the overall value proposition offered by the RTE foods.
Overall, the outlook for RTE foods in India looks quite promising, as all the necessary
drivers to create a demand in the market for this kind of products is in place. Given
manufacturers address the freshness and health-related issues, it could just be a matter of
two to three years for this market to attain the critical mass, which would induce mass
consumption in urban India, concluded Pinaki.

Major players in industry

Major Players in the Global Indo (NRI / Indian) Ethnic Ready-to-Eat industry
Brands
Amul

Description
Gujarat Cooperative Milk Marketing Federation (GCMMF) is
India's largest food products marketing organization. Apart from
being known for its dairy products, Amul has ventured into the
18

ready-to-eat industry and includes Processed Cheese, Pure

Ghee, Shrikhand, Nutramul and Mithaee Gulab Jamuns among its
offerings.
Gits produces the selected range of popular ready to cook and
Gits

instant foods that cover a range of ethnic Indian cuisine-and

where the recipes have "Global pallete acceptance".
The traditional Indian Sweet-Maker from a small set up has
transformed into a fully fledged processing food industry and

Haldirams

taking its wares beyond the domestic frontiers to the Western

World. Offers packaged Bhel puri chats such as Sev Puri, Chana
Masala, Samosa, Pakoras, Alu Tikki, Pao Bhaji, Gol Gappa,
Dhokla among others
The product line for House of Spices includes its own brand
name, Laxmi Brand. Under Laxmi Brand, House of Spices carries

House of Spices

all types of daals, beans, nuts, spices, edible oils, flours, pickles,
pastes, chutneys, frozen vegetables and frozen meals. Under
Shamiana, House of Spices other brand, they carry sweets,
snacks as well as ice cream.
Offers packaged sweets,syrups,namkeens, cookies, pickles, aloo

Ethnic Kitchens

Masala, Bhujia, Bhelpuri, Chana Dal, Kajui Ladoo and many more
items.
ITC's Flagship brand 'Kitchens of India ' has begun to carry this
exotic taste of Indian cuisine beyond the shores of India .

Kitchens Of India

Connoisseurs of Indian food in the US, UK, Switzerland, Bhutan,

Bangladesh, Hongkong, Tanzania, Canada and Australia now
have the opportunity to taste these delicious recipes.
Aashirvaad and Kitchens of India products from the ITC stable of
India include a wide assortment of ready to cook foods and dishes

ITC

ranging from Bukhara (Uzbek recepie) to Murgh Methi and other

exoctic cuisines and includes "regular" Biryanis, Curry Pastes and
dishes.

MTR

Amongst the top five processed food manufacturers in India, the

19

company claims to "market and export a wide range of packaged

foods to global markets" that include USA, UK, Australia, New
Zealand, Malaysia, Singapore, UAE and Oman. MTR foods
currently comprises twenty-two delicious and completely authentic
Indian curries, gravies and rice.
Priya has a range of popular traditional recipes starting from Dal
Makhani, Navaratan Kurma to Palak Paneer, Paneer Butter
Masala, Punjabi Chhole and Rajma Masala along with true
Priyafoods

southern delicacies like Andhra Veg Pulav, Mango Dal, Gongura

Dal. Priya's products are available in USA, Canada, West Indies,
UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Singapore,
Malaysia, Australia, U.K., New Zealand etc.
Kohinoor Heat & Eat Indian Curries are a range of ready - to - eat

Satnam Overseas Ltd

Indian delicacies. Kohinoor claims that "Heat & Eat range of

curries use the well-established retort technology to offer
extended shelf life to the products through steam sterilization."
Shana Frozen Foods specializes in ready to cook Ethnic foods.

Shana

Shana is a popular brand in the frozen Asian Ethnic food segment

in U.K. and Canadian market. Includes new South Indian Range
of frozen Idlis, Vadas, Masala Dosas and Mini Uttapams.
Tasty Bite has a range of entres and Ready Meals. They have
exceptional retort pouches which was developed for the Apollo

Tasty Bite

space program. Tested to withstand extreme temperatures and

heights from well below sea level to as high as the moon, this
retort packaging has made Tasty Bite a favorite with campers,
mountain climbers, sailing expeditions, desert safaris.
Ashoka is a Brand owned and managed by ADF Foods Limited (a
BSE listed Company) in India. Ashoka is our Flagship Brand and
the leading Ethnic Indian food brand made in India. It is among

Ashoka Ready to Eat

the widely distributed ethnic Indian brand. Its range includes

ready-to-eat curries (Heat & Eat), Frozen Foods (Indian Breads &
Snacks), pickles, condiment pastes, mango pulp/slices, chutneys,
pappadums, IQF (Individually Quick Frozen) ready-to-cook
20

vegetables, and Microwaveable rice.

Vimal Agro Products with state of the infrastructural set up has the
potential to manufacture more than 80 different food products
Vimal Agro Products

ranging from canned vegetables, Fruit pulp and slices, Pickles,

Chutney, papads and Ready to eat foods and supply products to
the retail sectors in Canada, United Kingdom, United states of
America under the brand name VIMAL and SWAD

Product Profile

(1)

MTR

21

MTR

Foods Limited

is amongst the top five processed food manufacturers in India. We manufacture, market and
export a wide range of packaged foods to global markets that include USA, UK, Australia,
New Zealand, Malaysia, Singapore, UAE and Oman.
Starting with the legendary MTR restaurant in Bangalore, Indias silicon valley, we now offer
''complete meal solutions'. Our wide range of products include ready-to-eat curries and rice,
ready-to-cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and
a variety of accompaniments like pickles and papads.
Our deep understanding of culinary expectations and needs has resulted in many new and
innovative products. Our investments in infrastructure and technology ensure that we can
scale rapidly and bring these to market. Today, consumers across the globe count on us to
bring them all-natural, wholesome and delicious food that is also convenient and no-fuss.
We have also expanded our retail presence significantly: contemporary 'Namma MTR' and
MTR kiosks now serve delighted consumers across Bangalore and Chennai.

QUALITY POLICY:
At MTR, quality is a way of life. Hazard Analysis and Critical Control Point or HACCP,
developed by the Codex Alimentarius Commission, is a global food safety standard. We
have successfully met the stringent requirements for this certification.

22

Our facilities are equipped with the latest systems. We adhere to international standards
across all operations: from sourcing the finest ingredients to processing and packing using
cutting-edge technology. Each MTR product carries this assurance of quality and meets the
high expectations our consumers have from us.

FEATURES OF MTRS FOOD PRODUCTS:

What makes MTR a trusted, household name?

Our products are 100% natural have no preservatives and use only the finest, most
authentic ingredients.

Be it an Instant mix or a Ready to Eat dish, pickles or soups, all MTR products are
known for their mouthwatering, "home-cooked" taste.

We adhere to the most stringent quality standards, from sourcing ingredients to

processing and packing. We are ISO 9002 and HACCP certified.

We use the latest technology to preserve the quality and freshness of our food. Our
use of technology from the Defense Food Research Laboratory for our Ready to Eat
products has won us the President's award.

All MTR products are 100% vegetarian.

PRODUCT LIST: READY-TO-EAT

23

 CURRIES
1 RAJMA MASALA
2 DAL MAKANI
3 RTE PALAK PANEER
4 RTE MIXED VEG CURRY
5 RTE CHANA MASALA
6 RTE DAL FRY
7 RTE NAVRATHAN KURMA
8 RTE ALU MUTTER
9 RTE PANEER MAKHANI
10 RTE PAV BHAJI
11 RTE AVIAL
12 RTE BENDI MASALA

RICE ITEMS
1 RTE TAMARIND RICE BULK
2 RTE LEMON RICE BULK
3 RTE SAMBAR RICE BULK
4 RTE RASAM RICE BULK
5 JEERA RICE
6 DIET DELITE
7 MASALA RICE

8 RAJMA CHAWAL
24

9 KHARABATH
10 KESARIBATH
11 BISIBELE BATH
12 PONGAL
13 VEGETABLE PULAV

SOUPS
1 SIMPLY TOMATO SOUP
2 SPICY TOMATO SOUP
3 MULLIGE TAWNY SOUPS
4 SPINACH CARROT SOUP
5 MIXED VEGETABLE SOUP
6 BABY CORN & SPRING ONION SOUP

(2)

ITC AASHIRVAAD
25

AASHIRVAAD READYMEALS
ITC Foods launched a range of Ready-To-Eat dishes under the 'Aashirvaad ReadyMeals'
label, in Hyderabad, on 25th June 2003. The range now comprises nine dishes and two
Combo packs. The dishes on offer currently are Rajma Masala, Nav Ratan Kurma, Dal
Makhani, Aloo Mutter, Palak Paneer, Pindi Chana, Pav Bhaji, Mutter Paneer and Yellow Dal
Tadka. Rajma Masala & Basmati Rice and Yellow Dal Tadka & Basmati Rice are available in
Combo packs.

The Dishes are priced between Rs. 30/- to Rs. 40/- for a 285 gms pouch and the Combo
packs are priced at Rs. 45/- for a 485 gms pack.

The unique packaging form, using a retort process, ensures that the original freshness and
taste of the recipes is protected without the use of preservatives.

THE RETORT PROCESS

26

The pioneering introduction of retorting technology is what has made the sale of Ready-toEat food products commercially viable.
The need of frontline military soldiers for light but nutritious food, with an assured long shelf
life was the impulse and the inspiration for the development and fine-tuning of the retorting
process.
Retorting technology was used by the US in its Apollo Space missions. Today it is the
mainstay of US military rations. Retorting is also widely used in packaged foods in Japan
and Europe.
The efficacy and effectiveness of the retorting process depends on the sterilisation process
and the retorting pouch.

STERILISATION PROCESS
The sterilisation process ensures the stability of the Ready-to-Eat foods in retort pouches, on
the shelf and at room temperature. The application of sterilisation technology completely
destroys all potentially harmful micro-organisms, thereby making sure that the food product
has a very long shelf life. However, in the current commercial context, the shelf life is limited
to one year.

RETORT POUCHES
27

Retort pouches are flexible packages made from multi-layered plastic films, with or without
aluminum foil as one of the layers. Their most important feature is that they are made of
heat-resistant plastics, unlike the usual flexible pouches. This makes the retort pouches
uniquely suitable for the processing of their food contents at temperatures around 120
degrees Celsius. That is the kind of ambient temperature prevalent in the thermal
sterilisation of foods.
The 3-ply laminate consisting of PET/ Al oil / PP is the most common material used in retort
pouches and is the only one used in India. ITC uses 4-layered pouches. The use of PET or
polyester as the outer layer gives the required strength to the pouch. The aluminum foil
serves as a barrier layer ensuring a shelf life of more than one year.
The Nylon layer provides strength to the pouch, reassuring additional shelf life. The
innermost layer of Polypropylene provides the critical seal integrity, flexibility, strength and
taste and odour compatibility with a variety of food products.
Aashirvaad ReadyMeals' is currently available across all major cities like Delhi, Mumbai,
Kolkata, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Nagpur, Patna, Guwahati, and
Vishakhapatnam. All grocery stores selling ready-to-eat products stock Aashirvaad
ReadyMeals.

(3)

SATNAM OVERSEAS
28

 Satnam Overseas Limited food products

Rice & curry combi meals

Rice treatpre-cooked Basmati rice

Kohinoor heat & eat curries

Rice & spice Basmati rice pilafs

29

Satnam Overseas Limted was incorporated on 26th July as a private Limited company with
the Registrar of companies Delhi and Harayana at New Delhi under the Indian Companies
Act, 1956 with the main object to manufacture and export rice. It was converted into a public
limited company on 9th December, 1992.
Satnam Overseas Limited has beem promoted by the Arora family from Amritsar. Sri Jugal
Kishore Arora, Sri Satnam Arora and Sri Gurnam Arora are the main promoters of the
Company.
The Company is an associate of the Satnam Overseas Group, which is known for its present
in Rice Trade since 1979.
The Company came out with a public issue of 40 lakhs Equity Shares of Rs.10/- each for
cash at a premium of Rs.7/- per share aggregating to Rs.680.00 lakhs in the month of
January/February.
The Company has launched its premium quality branded pulses on the national level.
The company issued 40,00,000 No. of equity shares of Rs.10/- each at a premium of Rs.7/per share during the year.
The company launched a new product - tea bags under the brand name of `Viceroy`.
The Company has tied up with few big companies in different countries for Export of Rice,
Pulses and other products. The Company has bagged award from WORLD ECONOMIC
FORUM in view of its excellent contribution towards global growth. The Company allotted
56,00,000 No. of Equity Shares of Rs. 10/- each fully paid-up by way of Bonus Shares.
In a bid to boost basmati exports under its `Kohinoor` brand, Satnam Overseas Ltd is setting
up a wholly-owned marketing subsidiary in the US.
The company received the prestigious APEDA Award for the Ninth Year in succession for the
outstanding export performance during the year.
The company has tied up with a multi-national Company in Saudi Arabia to market rice
under our own Brand in Saudi Market, which constitutes over 70% of the total Basmati rice
market of the world.
30

The Company has entered into agreement with National Securities Depository Limited and
Central Depository Services (India) Limited to facilitate holding and Trading of shares in
electronic form.
Satnam Overseas to emerge as the best premium food company, enabling people to savour
the flavours of India, globally
To achieve global standards of excellence in our operations with focus on consumer
satisfaction /delight, providing consumers the flavour of India;
To set up high standards of leadership, quality and productivity.
To develop a well knit human resources policy and culture which motivates employees to
contribute their best towards achievement of organisational objectives; and
To function as a responsible corporate citizen and help enrich the quality of life of the
community and work towards

sustainable development.

31

(4)

TASTY BITES EATABLES LIMITED

Tasty Bite Eatables Ltd (TBEL) was incorporated in 1985. Apart from ready to serve food, the
other business of TBEL includes processing of vegetables, lease of cold storage facilities
and food services business.
The company's plant is located at Khutao and Bhandgao ( Pune). The company currently
derives 70 per cent of its income through exports. TBEL launched ready-to-serve food
products in India in 1990.but was unsuccessful. Efforts to develop an export market or
collaboration with international majors like Pepsi also failed.
Connecticut-based Preferred Brands Inc (PBI), an international natural foods marketing and
Distribution Company, acquired the global marketing rights for the Tasty Bite brand. The
Tasty Bite brand was successfully launched in the US markets in 1995.
TBEL was referred to BIFR during the same period. Preferred Brands, by then the largest
customer for TBEL, decided to takeover management control of the Indian company.
PBI through its 51 per cent subsidiary, Preferred Brands Foods (India) Ltd, acquired a 67 per
cent stake in the company. The company initially launched its ready-to-serve Indianvegetarian entrees in cities like Pune, Mumbai, Chennai, Hyderabad, Bangalore and New
Delhi.

Future Plans
32

The company is banking on the changing consumer buying behaviour for the success of
their products. In three years time the company sees the domestic market overtaking the
exports. A phased launch of ready to serve food over several other cities is being planned
over the next 1-2 years. The company currently has only vegetarian food in its stable for the
Indian market and proposes to gradually increase this to non- vegetarian food in order to
meet the increased demand.

KEY DETERMINANTS OF READYTO-EAT/COOK PRODUCTS

33

Due to Change in lifestyle and FII investment there is a drastic change in Indian culture and
food habits. Most of the family members doesn't have time to cook the food in traditional
way and most of the families are living in separate environment. Despite modern cooking
devices, consumers still need ready-to-eat/cook food because it consumes very less time.
The change in lifestyle and dual income consumers prefer these types of products. The
products may vary from noodles, pasta, masala packages, stuffed paratha,etc.. and many
more. Other than national player like nestle,pepsico, ITC,haldirams,cavinkare,
There are many regional players who is making foray into ready-to-eat segment. Rapid
urbanisation is also one of the reasons for people to buy such products. Nowadays
people are also health conscious

MAJOR KEY DETERMINANTS FORCING THE

34

CONSUMERS TO BUY THE

PRODUCT
The below table shows the Major Key determinants forcing the consumers to buy the product

The above graph shows that lifestyle changes will be the key determinants of choosing this
product. Other factors taken into consideration are couples working, non-availability of
spices (to prepare masala), and convenience and taste factors.
Most of the respondents agreed the ready to eat packets are being brought because of the long
working hours. Consumers didn't find time to prepare traditional foods in home and find it
difficult to organize spices to prepare that masalas.

From the result it is arrived that complete life style changes are the major factors in going for
these foods. Some of the respondents agreed the taste is not a influencing factors in
determining these products.
In foods, the change is taking place from home-made to ready-to-eat. The evidence lies in
how quickly the market for packaged breakfast has doubled in three years to Rs 400 crore
growing at 30% annually.
Seeing huge opportunities in the changing preferences of these women, marketers are all out
to woo this growing segment. On top of the list for the indulgent homemaker are branded
ready-to-eat food, frozen food and ready-to-fry non-veg products. Other convenience foods
like packet pasta, instant noodles and snack mixes are also finding huge traction among this
group.

Literature Review
35

The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 corer (2006) is
expected to expand to reach Rs. 2,900 corer by 2015, according to an analysis done by Tata
Strategic Management Group (TSMG). In its analysis, TSMG said that the factors
contributing to the growth would be changes like cold chain development, disintermediation,
streamlining of taxation, economies of scale on the supply side, coupled with increasing
disposable incomes, diminishing culinary skills and the need for convenience on the demand
side. The report also highlights that the RTE market in India has remained under-penetrated
owing to factors such as consumers penchant for freshness, low affordability and the Indian
housewifes preference for home-cooked food.
According to data in the reports, packaged foods in India have grown at about seven per
cent a year between 2000 and 2005, with RTE foods being the fastest-growing, at a CAGR
of 73 per cent. The Indian RTE foods market, canned/preserved segment is more popular,
contributing about 90 per cent of the market and growing at a Compound Annual Growth
Rate (CAGR) of 63 per cent between 2001 and 2006 while the chilled and dried ready meal
segments are non-existent. There is a huge untapped market opportunity arising due to
rapid demographic shifts in income, urbanization, and proportion of urban working women in
India.
The industry needs to concentrate on broadening the market and increasing penetration
amongst Indian consumers. The analysis also pointed out that industry players would have
to significantly improve their price competitiveness with respect to other options such as
domestic help, eating out and ordering in, available to the Indian consumer. Besides price
consideration, the product range offered by industry players will have to be strengthened. At
the moment, the regional cuisine and non-vegetarian cuisine markets are relatively underserviced with concentration on the vegetarian North Indian meals.
India provides an attractive opportunity for both Indian and international players with a mix of
demand and supply side changes. If consumer demands of affordability, availability and
enhancing acceptability are met, the RTE foods market has the potential market size of
2,900 corer by 2015 from its existing Rs. 128 corer.
India has made lot of progress in agriculture & food sectors since independence in terms of
growth in output, yields and processing. It has gone through a green revolution, a white
revolution, a yellow revolution and a blue revolution.

36

Steptoe, M.Pollard and Wardle (1995) in their research work, titled Development of a
Measure of the Motives underlying the selection of food: the Food Choice Questionnaire
have developed a food choice questionnaire using Factor Analysis of responses from a
sample of 358 adults ranging in age from 18-87 years. The authors have determined Health,
mood, convenience, sensory appeal, natural content, price, weight control, familiarity and
ethical concern as the prime motives of food choice and have also evaluated the differences
in these motives with respect to sex, age and income.
Binkley(2006)in his research titled The effect of demographic, economic and nutrition
factors on frequency of food away from home has used a model explaining visits to table
service and Ready-to-eat restaurants that are estimated with nutrition variables added to
standard demographic measures ,wherein nutrition factors have less impact on table
service. However the frequency of consumers very conscious of nutrition factors is
significantly very less to table service and Ready-to-eat restaurants vis-a-vis others.
Manchestor and Clauson (1995) in their work titled 1994 Spending for Food Away from
Home outpaces Food at Home have analyzed how food expenditure has significantly
increased on eating out. Nayga and Capps(1986-1998)l in their study titled Determinants of
Food away From Home Consumption: An Update identified several socio economic and
demographic characteristics of individuals who have consumed food away from home using
1987-1988 national food consumption survey.
The analysis was performed using logic analysis. The significant characteristics have been
race, ethnicity, employment status, food stamp participation, seasonality, household size,
age, income and frequency of consumption. Jackson and McDaniel(1985)in their research,
titled food shopping and preparation: psychographic differences of working wives and
housewives explores various psychographic characteristics exhibited by working wives as
opposed to housewives in food shopping and food preparation by comparing responses of
246 working wives and 181 housewives to several food shopping and preparation related
psychographic statements. Results have revealed that working wives have a greater dislike
for food shopping and cooking and also exhibited a tendency to be less concerned with the
impact of their food shopping and preparation activities on other family members vis a vis
non working wives.

Roberts and Wortzel (1979) in their study, titledNew Life-style determinants of womens food
shopping behaviour have used life-style variables as predictors of food shopping behaviour.
37

It has been concluded that womens participation in the labor force have significantly focused
attention on changing life-styles and consumption patterns. Schroder and .Mc Eachern
(2005) in their research ,titled Ready-to-eats and ethical consumer value: a focus on
McDonalds and KFC aims to investigate the effect of communicating corporate social
responsibility (CSR) initiatives to young consumers in the UK on their fast-food purchasing
with reference to McDonalds and Kentuchy Fried Chicken (KFC)
It has been concluded by the authors that Ready-to-eat has been perceived as convenient
but unhealthy and therefore Ready-to-eat companies can no longer rely on convenience as
USP unless the implications of same on consumers health is given equal importance. Lowell
(2004) in his work, The food industry and its impact on increasing global obesity: A case
study has looked at the current crisis which is set to engulf both the developed and
developing world using a variety of reliable sources like WHO (World health organization)
and IOTF( International obesity task force).
The author has plotted the global increase in obesity over the last two decades and points
out the problems associated with childhood, adolescent and adult obesity with growing liking
for Ready-to-eat and snacking. The author has also pointed a finger at the food industry
particularly the fast-food industry, which over the few decades has perfected various
marketing techniques which have been designed to make us eat more food (supersizing)
and targeting more on schools and children.

Despite huge obesity epidemic, fat consumption however is very high in the western world
and is increasing in countries undergoing industrial development (Lands etal., 1990;
Trichopoulou & Efstathiadis, 1989). A lot of international research on changing consumption
patterns and its impact on the western world has revealed that there is a relationship
between the consumption of food, particularly Ready-to-eat and the state of obesity.
According to the US National Bureau of Economic Research 65% of obesity is caused by
Ready-to-eat and snacks. Jones & Sheers, Hiliier, Comfort and Lowell (2003) in a study
titled, Return to traditional values?

A case study of slow food outlines the origin of slow food and the challenges involved in
pointing a finger at deeply rooted Ready-to-eat industry for global obesity. According to the
report of Euro monitor Internationals IMIS database The Changing Face of Eating Habits
38

Obesity has become a major global problem with changing food and eating habits and
therefore a trend towards vegetarianism and organic food has come seen more in western
countries. Ethical consumerism has become an issue in developed countries, as the media
increasingly highlights issues of exploitation, food safety and environmental concerns. As a
result changes in tastes and lifestyles backed by urban living will significantly impact food
demand and consumption patterns. Goyal and Singh(2007) in their research work, titled
Consumer Perceptions about Ready-to-eat in India: an exploratory study have explored
that the young Indian consumer has passion for visiting Ready-to-eat outlets for fun and
change but they feel that home made food is better than convenience Ready-to-eat .

Their findings have revealed that consumer acceptability for Ready-to-eat in the future would
be decided only by the quality of food and customer service. According to the WHO, India
has been dubbed as Diabetic capital of the world with 37 million diabetics out of 150 million
diabetics in the world.

Raghavan (2003) in his research, titled Food in a Globalised World has concluded that
food is a means of life but it has become meaningful investment for business. There is huge
gap in food and health related research in Indian context despite obesity almost being an
epidemic in metropolitan cities like Delhi, Mumbai, Bangalore, Kolkata and gradually rising in
other urban areas too. It is an attempt of mine to analyses in Indian context the determinants
and implications of consumers food choice particularly towards Ready-to-eat and discussing
policy implications for the same.

OBJECTIVES OF THE STUDY

39

In view of changing food and eating habits in India and its implications on health and healthy
eating among the consumers, the key objectives of my study are:
a) To identify the key determinants of ready-to-eat/cook products
b) To study the growing demand of these products
c) To find out the major sources of attraction for these products

Problem Statement /Rationale / of the

Study
This study is exploratory and has some limitations that however does not liquidate the
purpose of study. Data obtained from the convenience sample and literature reviews has
been generalized for inferring consumption & buying patterns of Indian consumers
(population).

Young & Middle age consumers in the age group of 20-40 from Bangalore, Chennai, cochin,
and Hyderabad, frequently visiting the grocery & shopping malls are given questionnaire and
interviewed personally. The covered people may not represent the whole population and
most of them represent female genders. The cities targeted also many not represent whole
south Indian population.

Background of the Study

40

Indian cooking and lifestyle have undergone tremendous changes in the last 15 years. There
are many major factors impacts this change are include, liberalization policy, dual income,
separate living of couples, Innovative kitchen applications, Media proliferation etc. The
cooking style and eating habits in India varies drastically from southern part of India to
northern part of India. Due to lifestyle pressure nowadays people prefer easy short way of
cooking food rather spending too much time on spending in cooking.
Non-availability of raw materials to prepare masala and tedious process involved in doing
so, has influenced people to choose such products. There is no specific category and market
potential for these products. The product portfolio varies from noodles, pasta, chips, dairy
products, fish & meat products, ready cooking dosa, parota items, masala dishes, pre
cooked dishes etc. There are peoples, who are migrating to cities for job and education and
these people have find the Ready-to-eat products are comfortable to eat rather than
depending on restaurants.
Most of the dual income (both husband and wife are office goers) families want to spend
much less time on cooking because of less availability of time. During weekends they want
to spend time with their kids and outing, whereas in weekdays the office duration is large
and these factors forced them to go for buying such products. Other factors influences this
products is availability of different flavors and dishes. Consumers who are looking for
different dishes and flavors now depend on these products. This products brings variety to
their eatings and palatable too.
There is no conclusion which one precedes-whether the availability or taste or time
constraint, all these factors complement each other in driving these products. When India
becomes the hub of many multinationals and there is a rapid change in people lifestyles.
Modernization, majority of young population, Knowledgeable consumers, will make an
impact on these products. Due to raise in literary levels, proliferation of communication
technology, consumers are becoming more aware of the foods they intake and they take
decision based on the wealth of resources available.

41

There are data available like India is becoming capital for heart patients and diabetic, there
is a much stress given on lifestyle and food habits of peoples. Health conscious consumers
are mostly well educated and can access to different information available on the internet,
magazines, TV shows, and word-of-mouth information by their society people. More than
male, the female consumers shown much interest in knowing the level of calories,
ingredients and certain product approval certificates in choosing the products.
This shows a good sign of healthy generation in India, especially in the age group of 20-40.
Females are also weight conscious and they decide the products based on their
consciousness often, house wives become the major influential factors in deciding the food
products for the whole family. They now going for purchasing high fiber, low calories and
nutrition rich products for their family protection. Advertisements about these products are
also becomes a major factor in deciding these products. Level of obesity is on the rise of
Indian population and on one side consumers are becoming awareness of the food they
intake and on the other side consumers are carried away by advertisements information and
packaging styling.

RESERCH METHODOLOGY
42

Research can be define as the search for knowledge or any systematic investigation to
establish fact Methodology may be a description of process, or may be expanded to include
a philosophically coherent collection of theories, concepts or ideas as they related to a
particular discipline or field of inquiry.
Research Methodology we not only talk of the research methods but also consider the logic
behind the method we use in the context of our research study and explain why we using a
particular method or technique so that research result are evaluated by the researcher or by
others.
Research methodology is a way to systematically slove the research problem. It is
necessary for the researcher to know not only the research methods but also the
methodology. Researchers not only need to know how to develop certain indices or tests but
also need to know which of these methods or techniques are relevant and which are not.
Researchers also need to understand the assumptions understand various techniques.

Research Process:

43

Research Design:

A research design serve as a bridge between what has been established and what is to be
done, to conduct study, to realize this objective. It anticipates what the client will need in
terms of results and the analytical work on the gathered data that will convert it to useful
findings.
Research design is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal information
with minimal expenditure of effort, time and money.
Research design can be categorized in three parts
i).

Exploratory research studies.

ii). Hypothesis-testing research studies.

iii). Descriptive and diagnostic research studies.
The research study is of descriptive research study because this research is made on the
basis of primary data as well as secondary data. Descriptive research studies are also
termed as formulating research studies.
44

Research design is needed because it facilitates the smooth sailing of the various research
options, thereby making research as effective as possible yielding maxim information with
minim expenditure of effort, time & money.
A research design is the arrangement of condition for collections & data in a manner that aim
to combine relevance to the research purpose with economy in procedure. Decisions
regarding what, when, how much, by what means concerning an inquiry or research study
constitute a research design.

Research design selected for this project is Descriptive Research Design.

SOURCE OF DATA

45

Data has to be collected from the right source the purpose of the research. Data are
collected as per the requirement of the research project. There are two main sources of
data.
Source of data

Primary data

Secondary data

Primary Data:
Primary source means the data are collected for the first time directly from the sample or
population as per the requirement.

Secondary Data:
For this project report I have used secondary data because this is secondary research.
The secondary source are those which have all ready been collected by someone else and
which have already passed through statistical process like information available from
newspaper, magazines, journals, websites, book or periodical reports, data services and
computer data based

Data Collection Method:

(a) Primary Data Collection Method:

Survey method was used for primary data collection

We used questionnaire as an instrument for survey method.
Structured questionnaire.
Type of questionnaire: Open ended and Closed ended.

(b) Secondary Data Collection Method:

Reference books.
Internet.

46

Population
All the items under consideration in any field of inquiry constitute a universe or population.
A complete enumeration of all the items in the population is known as a census inquiry. It
can be presumed that in such an inquiry when all the items are covered no element of
chance is left & highest accuracy is obtained. But in practice this may not be true. Even the
slightest element of bias in such an inquiry will get larger & larger as the number of
observation increases. Besides, this type of inquiry involves a great deal of time, money &
energy. In fact, census inquiry is not possible in practice under many circumstances.

Hence, quite often we select only a few items from the universe for our study purposes. The
items so selected constitute what is technically called a Sample. In other words, a sample
design is a definite plan determined before any data are actually collected for obtaining a
sample form given population.

47

Sampling method
The sample is selected by using Non Probability convenience sampling method.

Sampling Frame

Target Population
The population for this research study consists of the resident of Bhavnagar City.

Sampling unit
In this study the Sampling unit is individual consumer.
Sample size:
100

Date Collection Instrument

Here we are using questionnaire method as a data collection instrument

Hypothesis

48

Due to Change in lifestyle and FII investment there is a drastic change in Indian culture
and food habits. Most of the family members doesnt have time to cook the food in
traditional way and most of the families are living in separate environment.
Despite modern cooking devices, consumers still need ready-to-eat/cook food because
it consumes very less time. The change in lifestyle and dual income consumers prefer
these types of products. The products may vary from noodles, pasta, masala packages,
stuffed paratha, etc... and many more. Other than national player like nestle, pepsico,
ITC, haldirams, cavinkare.
There are many regional players who is making foray into ready-to-eat segment. Rapid
urbanization is also one of the reasons for people to buy such products. Nowadays
people are also health conscious.

Hypothesis Testing:
H0: Pricing affect while purchasing Ready To Eat Food Products.
H1: Pricing does not affect while purchasing Ready To Eat Food Products.
TEST STASTICES:-

Chi-Square Test =

(Fo-Fe)2
Fe
Where, Fo = Observed Frequency and Fe = Expected Frequency

1. Consumer use or consume ready to eat food products

49

Respondents
35
65

Yes
No

2. Consumer consume ready to eat food products in the future, if the problems
are solved
Respondents
Yes

52

No

18

Cant say

30

3. improve efficiency

Yes
No
Total

Male
17
27
44

Female
18
38
56

Total
35
65
100

X2 table for above distribution is given below

Observed

Expected

(Fo - Fe)

(Fo - Fe)2

(Fo - Fe)2/Fe

Frequency
17
27
18
38
TOTAL

Frequency
15.4
28.6
19.6
36.4

1.6
-1.6
-1.6
1.6

2.56
2.56
2.56
2.56

0.167
0.090
0.130
0.070
0.457

50

Calculations

(Fo-Fe) 2

Chi-Square Test =

Fe
Where, FO = Observed Frequency and Fe = Expected Frequency
Degree of freedom = (r-1) (c-1)
= (2-1) (2-1)
= (1) (1)
=1
Calculated value = 0.457
At 0.05% of significance level,
Tabulated Value = 3.84
Calculated value (0.457) < tabulated value (3.84),
So Ho is accepted.

DATA ANALYSIS & INTERPRETATION

Here we have used statistical techniques for analysis. We have analyzed data to
determine the factors affecting the purchase decision of Ready to Eat Food and to
understand the consumption pattern of Ready to Eat Food.

1) In which kind of family do you live?

51

[ ] Joint family
[ ] Nuclear family
[ ] Live alone

Locations for our survey were Ahmedabad and Gandhinagar. Generally most of the
people in Gujarat live in nuclear family. Very few people, whose native are not
Ahmedabad & Gandhinagar and doing job or business here, live alone.

2) Do you use or consume READY TO EAT food products?

[ ] Yes
[ ] No

52

From the above pie chart that around 65% people do not use Ready to eat food and
35% people do not use or consume it. There are many reasons why very few people
consukme RTE food. They might be less awareness, less reliability, higher price or no
requirement of such products.

FOLLOWING FOUR QUESTIONS ARE FOR USERS OR BUYERS OF READY TO

EAT FOOD

3) Why do you consume ready to eat food products?

[ ] Need.
[ ] Taste.
[ ] Reliability.
53

[ ] Price.
[ ] Freshness.
[ ] Quality.

We can see from the pie chart that one of the most important reason to purchase RTE
food is the requirement. If a person lives alone and do not get the enough time to cook
food than and than he or she will go for it. And most of the users come under this
category. They need the ready to eat food products. And some of the people like the
taste of it that is why they use it.
4) Which companys READY TO EAT food product do you consume?
[ ] ITC.
[ ] MTR.
[ ] Satnam Overseas.
[ ] Testy Bites.

54

Most of the users of RTE food purchase ITCs AASHIRWAD (RTE food brand). And
second preference is given to MTR. As ITC is a Famous and trustworthy company
people prefer to purchase their products. And as other companies like MTR, SATNAM
OVERSEAS and TASTY BITES have not become aggressive in Gujarat, people are not
aware about them. They are also expanding their market.

c) How many times do you consume READY TO EAT food in a month?

[ ] 1-5 times
[ ] 5-10 times
[ ] 10-15 times
[ ] More than 15 times

55

Most of the users consume RTE food for 1-5 times in a month. It means today also
many people like to eat home made food and restaurants food.

d) How do you find the product?

[ ] Very good
[ ] Good
[ ] Average
[ ] Bad
[ ] Very bad
56

Out of 100 users, 35 users rate the RTE products average. It means if the companies
improve the quality and taste, the market for the RTE can expand or increase.

FOLLOWING TWO QUESTIONS ARE FOR NON-USERS OR BUYERS

a) Which factors do affect for not consuming READY TO EAT food?

[ ] No need
[ ] Taste
[ ] Reliability
57

[ ] Price
[ ] Freshness
[ ] Quality

Generally in India or in Gujarat, most of the people dont need to purchase RTE food.
They dont require it that is why they do not purchase it. And 20% of the people believe
that they are not fresh so they do not like to eat.
b) Will you consume READY TO EAT FOOD products in the future, if the problems are
solved?
[ ] Yes
[ ] No
[ ] Cant say

58

When we ask respondents that if your particular problems regarding RTE food like high
price, poor quality etc., will you purchase it? And most of them were agreed to purchase
it.
Finally it can be said from above analysis that people who are unmarried, who
live alone and the family in which both husband & wife do the job consume Ready
to Eat food. Still RTE food makers need to do lot promotion to make people aware
about their products and to penetrate the market they also have to reduce the
price of their product.

RESULTS
The results of the study are presented under the following headings.
1 Awareness of consumers towards branded ready-to-eat food products.
2 Purchase behaviour of consumers towards ready-to-eat food products.
3 Factors influencing brand preference.

59

4 Alternative purchase plans of the consumers.

1. AWARENESS OF CONSUMERS TOWARDS BRANDED READY-TO-EAT
FOOD PRODUCTS
To know the awareness, it is necessary to study socio-economic characteristics of the
Consumers, as these are the important variables, which decide the consumption pattern
of food products in the family. Generally it is believed that, as the income, age and
education of the consumers increase, the expenditure on consumption of food products
also increases.
2. PURCHASE BEHAVIOUR OF CONSUMERS
2.1 Buyers and non-buyers of ready-to-eat food products
The data on buyers and non buyers of ready-to-eat food products in the study area is
presented in Table 4.7. The table revealed that biscuits were consumed by all the
respondents in the study area. Hundred per cent each of the respondents across all the
age groups consumed biscuits. About 92.00 per cent of the respondents purchased
chips for consumption and remaining 8.00 per cent of them were not buying. In case of
AG1, chips were consumed by all the respondents. About 98.18 per cent of the
respondents of AG2 bought chips for consumption. Among AG3, 66.66 per cent of them
were buying chips for consumption and remaining 33.33 per cent of them were non
buyers. Fruit juice was bought by 93.00 per cent of the respondents and remaining 7.00
per cent of them were not buying.
Hundred per cent, 96.36 per cent and 88.88 per cent of the respondents of AG1, AG2
and AG3 respectively consumed fruit juice. Fruit juice was not consumed by 3.63 per
cent and 11.11 per cent of the respondents of AG2 and AG3 accordingly. Ice creams
were consumed by 94.00 per cent of the respondents and remaining 6.00 per cent of
them were not consuming.
About 96.87, 98.18 and cent per cent of the respondents of AG1, AG2 and AG3
consumed ice creams. Only a meagre per cent of the respondents of AG1 (3.12%) and
AG2 (1.81%) did not consume ice creams. All the respondents of AG4 were non-buyers
of chips, fruit juice and ice creams.
2.2 Reasons for purchasing ready-to-eat food products
An attempt was made to elicit the factors considered by the respondents for purchase of
ready-to-eat food products in Bhavnagar. The major factors considered while
purchasing biscuits were convenience to use as snacks (65.00%), liking of the family
members (60.00%) and ready availability (53.00%). The other reasons for the purchase
of biscuits were taste, satisfaction, easy availability in the shops, save time of
60

preparation and influence of friends/relatives (46.00%, 43.00%, 39.00%, 23.00% and

15.00% respectively). Taste was the main reason for purchasing chips (80.43%).
The other factors considered while purchasing chips were convenience to use as
snacks (64.13%), satisfaction (52.17%), ready availability (46.73%), save time of
preparation (39.13%), influence of friends/relatives (36.95%), liking of the family
members (31.52%) and easy availability in the shops (26.08%). Only a meagre
percentage of the respondents said other reasons (1.08%) like habit of eating and time
pass. Fruit juice was consumed mainly because of taste (59.13%) followed by ready
availability (55.91%), save time of preparation (49.46%), satisfaction (47.31%),
influence of friends or relatives (44.08%), liking of the family members (36.55%),
convenience to use (26.88%) and easy availability in the shops (15.05%).
Only 9.67 per cent of the respondents said they consume fruit juice because of its
nutritive value and good for health. In case of ice creams, 61.70 per cent of the
respondents consume because of its taste, 55.31, 44.68, 39.36, 34.04, 27.65, 25.53
and 13.82 per cent of the respondents opined that satisfaction, influence of
friends/relatives, liking by the family members, ready availability, save time of
preparation, easy availability in the shops and convenience to use respectively were the
factors responsible for purchasing ice creams.
2.3 Reasons for not purchasing ready-to-eat food products
Reasons for not purchasing ready-to-eat food products, as opined by the respondents
are presented in Table 4.9. It was revealed from the table that, there was no reason for
the respondents for not purchasing biscuits. That is the researcher could not find
anybody who disliked the product. Cent per cent of the respondents did not purchase
chips since they were health conscious. About 62.50 per cent of the respondents did not
purchase due to low quality of the product. The other reasons for not consuming chips
were dislike towards the product and high price (50.00% each). In the case of fruit juice
majority of the respondents (85.71%) were not purchasing this product because they
preferred home made products.
The other reasons for not purchasing fruit juice were high price (71.42%), dislike
towards the product (42.85%) and 28.57 per cent of them did not purchase because of
its low quality. In case of ice creams cent per cent of the respondents did not purchase
because they disliked the product, 66.66 per cent of them were not using this product
because they were health conscious and 33.33 per cent of the respondents quoted
other reason like allergy to cold. High price and low quality were the reasons for not
consuming ice creams by 16.66 per cent each of the respondents.
2.4 Monthly expenditure of households on food items
It could be seen from the table that the households monthly expenditure increased with
increase in monthly income. The average monthly expenditure on ready-to-eat food
products was found to be highest in case of high income group, followed by middle
61

income group and low income group. On an average Hubli and Dharwad consumers
spend Rs. 301.10 per month on ready-to-eat food products which was around 14.00 per
cent of their monthly consumption expenditure. Similar trend was noticed with respect to
other food items like cereals, pulses, fats and oils, fruits and vegetables and milk and
milk products. With respect to total monthly expenditure, it was Rs. 2747.60 in high
income group, Rs. 2331.35 in middle income group and Rs. 1566.00 in low income
group.
Among the three income groups studied high income group spend more proportion
(15.39%) of their monthly consumption expenditure on ready-to-eat food products, while
low income group spend 14.30 per cent of their monthly consumption expenditure. It
was surprising to see the consumption expenditure of middle income group on ready-toeat food products, where in they spend only 12.80 per cent of their monthly expenditure
on ready-to-eat food products.
2.5 Monthly expenditure of households on ready-to-eat food products
The average monthly expenditure on biscuits was found to be highest in case of high
income group (Rs. 128.38) followed by middle income group (Rs.82.94) and low income
group (Rs. 60.70). Similar trend was noticed with respect to other products like chips,
fruit juice and ice creams. On an average Hubli and Dharwad consumers spend about
Rs. 85.86 on biscuits, Rs.41.75 on chips, Rs. 57.80 on fruit juice and Rs. 58.70 on ice
creams monthly.
The analysis of expenditure on ready-to-eat food products revealed that, on an
average the consumers of Hubli-Dharwad spend maximum on biscuits (35.17%)
followed by ice creams (24.04%), fruit juice (23.67%) and chips (17.10%) out of their
monthly expenditure on ready-to-eat food products. Among the income groups studied,
high income group spend the maximum on biscuits (35.51%) followed by ice creams
(26.44%), fruit juices (22.55%) and chips (15.48%) out of their total consumption on
ready-to-eat food products.
While middle income group after spending maximum on biscuits (34.45%), next they
preferred fruit juice (25.71%), ice creams (20.70%) and least was on chips (19.11%).
The expenditure of low income group followed the pattern of high income group in the
order of their spending on ready-to-eat food products.
2.6 Frequency and place of purchase
It could be seen from the table that, majority of the respondents purchased biscuits
twice in a week from bakeries and departmental stores (70.58% each) and 41.17 per
cent each of them purchased from retail outlet. This was followed by once in a week
from departmental stores (63.63%), bakeries (57.57%) and 42.42 per cent of the
respondents purchased from retail outlets.
Most of the respondents purchased chips, fruits juice and ice creams whenever
62

needed. Majority of them purchased chips from bakeriesfollowed by departmental

stores and only of the respondents purchased from retail outlets. This was followed by
fortnightly purchase of chips from bakeries , departmental stores and them purchased
from retail outlets.
In case of fruit juice, maximum of the respondents purchased from bakeries and least
per cent of the respondents purchased from retail outlets This was followed by once in
a week purchase from bakeries , retail outlets , departmental stores (23.07%) and least
per cent of the respondents purchased from ice parlors (15.38%). Ice creams were
mostly purchased in ice parlour (96.72%), when ever needed. Thirteen per cent of the
respondents bought ice creams from bakeries. Very few of them purchased from retail
outlets (4.91%) and departmental stores (3.27%). This was followed by once in a week
purchase from ice parlors (94.11%), bakeries (23.52%), retail outlets (17.64%) and
11.76 per cent of them purchased from departmental stores.
2.7 Nature of purchase decision
In case of biscuits, among the first two age groups, maximum of the respondents did a
planned purchase (71.87% and 61.81% respectively) and only 28.12 per cent and 38.18
per cent of first and second age groups respectively did impulsive buying. But in case of
AG3, 55.55 per cent of them did impulsive buying followed by only 44.44 per cent of
them went for planned purchase. In the last group, all the respondents planned and
purchased biscuits and none of them opted for impulsive buying. Overall, 65.00 per cent
of them did planned purchase and only 35.00 per cent of them did go for impulsive
buying for biscuits. About 73.91 per cent of the chips buyers did impulsive buying and
remaining 26.08 per cent of them did go for planned purchases. Among the first three
age groups, majority of the respondents did go for impulsive buying (68.75%, 74.07%
and 100.00% of the respondents of AG1, AG2 and AG3 respectively). About 31.25 per
cent 25.92 per cent of the respondents of AG1 and AG2 did planned purchase and none
of the respondents of AG3 did planned purchase.
Among the fruit juice buyers, 55.91 per cent of them planned the purchase of fruit
juice and remaining 44.08 per cent of them did go for impulsive buying. Among the first
age group most of them planned and purchased fruit juice (68.75%) and only 31.25 per
cent of them did go for impulsive buying.
In case of , marginally higher per cent of the respondents did impulsive buying (50.94%)
followed by planned purchase by 49.05 per cent of the respondents. In case of , 50.00
per cent each of the respondents did go for impulsive buying and planned purchase. In
the case of ice creams, among the first age group maximum of the respondents planned
and purchased ice creams followed by only 35.48 per cent of them went for impulsive
buying. But in case of and majority of them did impulsive buying and respectively did
planned purchase. Overall, 51.06 and 48.93 per cent of ice cream buyers did go for
impulsive buying and planned purchase respectively.
3. FACTORS INFLUENCING BRAND PREFERENCE

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While preferring a particular brand in biscuits quality was considered as the foremost
factor. Second important factor was taste with a mean score of 74.79. Reasonable price
was ranked as third factor. Quantity and availability of the brands were ranked fourth
and fifth ranks respectively. While preferring a particular brand in chips, fruit juice and
ice creams, taste was considered as the foremost factor in all the products. Quality was
considered as the second important factor by the consumers. Third criteria considered
was reasonable price in all the three products. Quantity and brand image were
considered as fourth and fifth criteria respectively.
In case of all the four products retailers influence was considered as the last criteria
for the preference of a particular brand (mean score of 27.91, 30.32, 28.53 and 31.45
respectively).
4. ALTERNATIVE PURCHASE PLANS OF READY-TO-EAT FOOD
PRODUCTS
Majority of the respondents in case of biscuits (80.00%), chips (60.86%), fruit juice
(58.06%) and ice creams (56.38%) would go to other shops if preferred brand was not
available. In the case of biscuit consumers, 27.00 per cent of the respondents would
postpone their purchase decision if their preferred brand was not available, 22.00 per
cent of them bought other brand and 26.00 per cent of the respondents placed order to
get required brand. In case of chips, 40.21 per cent of the respondents opined to buy
other brand if their favourite brand was not available, 36.95 per cent of them would
postpone the purchase decision and only 23.91 per cent of the respondents planned to
place order to get their required brand. In case of fruit juice, if required brand was not
available in the market 34.40 per cent of the respondents were ready to postpone their
purchase decision, 38.70 per cent of the respondents opined that they would buy other
brand and 21.50 per cent of them said they would place order to get their required
brand.
In case of ice creams, 40.42 per cent of the respondents opined that they would
postpone the purchase decision of their preferred brand was not available in the market,
32.97 per cent of them would buy some other brands and 34.04 per cent of the
respondents said they would place order to get required brand.

FINDINGS
The important findings of the study are summarized and suitable conclusions are
explained below.

64

The brand awareness of consumers about Ready to eat food products among different
consumers revealed that, most of the respondents were aware of MTR (96.00%), ITC
(83.00%) and Satnam Overseas (67.00%) brands.
Brand awareness of consumers about MTR among different age groups showed
that, brand was very popular i.e. 96.00 per cent of respondents were aware, followed by
Ashirvad brand (93.00%) and Everest (87.00%).
Chips of Tasty Bytes brand was less familiar among the respondents. All the
respondents were conscious of MTR. Majority of the respondents were familiar with
ITC.
Brand awareness of consumers about ice creams among different age groups showed
that, majority of the respondents were aware of Amul brand (99.00%), followed by Arun,
MTR and Nandini brands . Only a small percentage of the respondents were aware of
Dinshaws brand. All the respondents were aware of Amul brand. In case of majority of
the respondents were aware of Amul and MTR brands.
Influence of media to create awareness about the brands in the study area showed that
in case of Ready to eat food products, television was the major source for getting
information about the brands. This was followed by newspapers and friends/relative.
In case of other products majority of the respondents were influenced by television.
Radio was the least preferred media for brand awareness of all the four products.
Overall, television was preferred as the major source of information for brand
awareness followed by newspapers and friends/relatives. Only a meager percentage
of the respondents were influenced by radio.
Buyers and non-buyers of ready-to-eat food products presented that consumed by all
the respondents in the study area. About 92.00 per cent, 93.00 percent and 94.00per
cent of the respondents consumed MTR, Everest and ITC respectively.
All the respondents consumed food products and Ice-creams were mostly consumed by
all the respondents. None of the respondents consumed chips, fruit juice and icecreams. The major factors considered by the respondents for purchasing biscuits were
convenience as snacks, liking of the family members and ready availability . Taste was
the main reason for purchase of chips, fruit juice and ice creams.
Convenience to use as snacks, satisfaction and ready availability were other important
factors considered while purchasing food products. In case of fruit juice, ready
availability, save time of preparation and satisfaction were other important factors
considered by the respondents. About 55.31 per cent and 44.68 per cent of the
respondents consumed ice creams because of satisfaction and influence of friends or
relatives.
All the respondents did not purchase oili products since they were health conscious.
The other reasons for not consuming chips were low quality of the product, dislike
65

towards the product and high price. In case of fruit juice, majority of the respondents
were not purchasing this product because they preferred home made products. High
price was the other important reason for not purchasing ready to eat food products.
In case of ice creams all the respondents did not purchase because they disliked the
product. More than half of the respondents said they were not consuming ice creams
because they were health conscious. The average monthly expenditure on ready-to-eat
food products was found to be highest in the case of high income group.
It was inferred that majority of the respondents purchased Ready to eat twice in a week
from bakeries and departmental stores. Most of the respondents purchased ready to eat
food products whenever needed. Maximum number of respondents purchased chips
and fruit juice from bakeries.
Ice creams were mostly purchased in ice parlours. In case of biscuits and fruit juice,
majority of the respondents did go for planned purchase. But in case of chips and ice
creams majority of the respondents did impulsive buying.
Influence of income on purchase decisions on ready-to-eat food products showed that,
in case of biscuits, chips and fruit juice majority of the respondents of all the three
income groups took their own decision while purchasing the products. In case of ice
creams, majority of the respondents of low and high income groups took self decision.
In the middle income group, maximum of the respondents were influenced by friends
while taking purchase decision on ice creams. Influence/impact of education to make
purchase decision on ready-to-eat food products showed that, in case of biscuits, fruit
juice and ice creams most of the degree and post graduate level respondents took their
own decision while purchasing.
It clearly shows that education level of the respondents has prompted them to take
independent decision. It was inferred that maximum number of respondents preferred
sweet biscuits It was found that preference for potato chips was found to be highest in
case of all the three age groups. Banana chips and jack fruit chips were also highly
preferred among the respondents. Chilly flavoured/masala chips were mostly preferred
among the respondents followed by tomato flavoured chips and salted / plain chips.
Mango juice, apple juice and orange juice were mostly preferred juices among the
respondents. Majority of the respondents preferred cone ice creams followed by cup
and candy ice creams, family packs were least preferred among the respondents. It
was found that none of the respondents of AG1 preferred family packs.
Maximum number of respondents preferred vanilla flavor followed by pista flavour and
chocolate flavour. Chocolate flavour was highly preferred in case of first age group
respondents. In the case of biscuits, Parle-G, Good day and Marie gold biscuits were
highly preferred brands among the respondents. Most of the respondents preferred
66

Lays, Uncle chips and Bingo brands in the case of chips. In case of fruit juice Maaza,
Frooti and Slice were highly preferred brands.
In case of ice creams majority of the respondents preferred Amula brand followed by
Kwality walls and MTR. The factors that influenced brand preference of biscuits were
quality, taste and reasonable price.
In case of chips, fruit juice and ice creams the major factors influenced brand
preference were taste, quality and reasonable price. Maximum number of respondents
in case of all the four products would go to other shops if preferred brand was not
available.

The results have shown the ready-to-eat market segment is defined by high
growth in middle class section peoples and their life style changes due to job
factors. Some sections of the people agreed, availability of product choices is
also deciding them to buy such products impulsively. Even some small section of
the people agreed that most of the youngster dont want to spend much time.

LIMITATIONS OF THE STUDY

Data obtained from the convenience sample and literature reviews has been
generalized for inferring purchasing patterns of Indian consumers (population). The
67

numbers may not totally represent the whole section of the population because of
different backgrounds.

Although the study varies in male and female ratio and family members and May not
considered the collective opinion of the family. Customers are surveyed in shopping
malls and not in Koriyama shops.

This study is exploratory and has some limitations that however does not liquidate the
purpose of study. Data obtained from the convenience sample and literature reviews
has been generalized for inferring consumption & buying patterns of Indian consumers
(population).

Young & Middle age consumers in the age group of 20-40 from Bangalore, Chennai,
cochin, and Hyderabad, frequently visiting the grocery & shopping malls are given
questionnaire and interviewed personally. The covered people may not represent the
whole population and most of them represent female genders. The cities targeted also
many not represent whole south Indian population.

Ready to eat foods such as processed foods and pre-packaged meals have a few
advantages, but many disadvantages. They are convenient when you don't have a lot of
time and are handy on the go. The problem is that they are full of chemical
preservatives that keep them fresh and make them convenience foods.

They are full of salt, which isn't good for anyone if not moderated. Most ready to eat
foods have salt contents that are close, if not past the recommended daily salt intake
levels. If you can, avoid eating them. They contribute to health conditions such as heart
problems, high blood pressure, kidney and liver problems.
The below pie-diagram shows the people in the age group of between 20-40 responded
that there are many major sources of attraction for buying these products. Good
packaging plays a important role in deciding this product. There are other factors taken
into consideration are aroma & taste, easy to cook, healthy, information on calories, rare
ingredients, convenience in buying, quick turn round time in cooking.
68

In the nutshell, we cant freeze one of the major factors is the source of attraction for
these FMCG products, because all of these other factors contributing to the growth of
these products or the major sources of attraction for these products. Most of the
respondents feel the packaged food are healthy because over the cover the ingredients
and calories level are printed properly and so they can make decision based on these
factors.

Convenience in buying are also the another factor. Some of the ingredients are not
available nowadays and people are finding it difficult to access it, so foods combined
with rare ingredients are one of the major factors in deciding these products. Most of the
consumers are knowledgeable and used to buy these products only after carefully
reading the ingredients in a proper way.

SUGGESTIONS
As awareness of RTE food is less, food companies should increase their promotional
activities.

69

Food companies should organize a food festival events in different cities to attract new
customers
Food companies concentrate more on nuclear family but along with they should also
concentrate on people who live alone.

Food companies should try to reduce the cost of RTE food.

Though the demand for the ready-to-eat products is increasing in the global market, the
supply is still not satisfactory. So food companies should increase their production
capacity.

Quality is of paramount importance for the growth of the RTE foods business in India.
So each food company should concentrate on quality improvement of RTE food.

Packaging is also important for RTE food to keep the food hygienic. Food companies
must follow the international norms for packaging.

Food companies should explore the new avenues for marketing and distribution of RTE
food.

CONCLUSION
With the income level rising, demand for milk, meat or fish, fruits and vegetables is also
increasing in India. With more urbanization, Indian families also consume more
processed foods, more ready-to-eat foods, etc. Asian Americans, now numbering over
70

10 million along with the other 13 million persons of India origin spread all over the
world are a huge potential market for the RTE Foods out of India. This creates a scope
for the producers to come out with a long range of dishes including the usual meals.
India had been at the forefront for variety of dishes both in domestic and global market.
Today the ready-to-eat products produced from India are mostly on Basmati rice Pulao,
Biryani, Dal, Channa, Rajma, Spicy Vegetable Curry, Mushroom, Paneer, Chicken,
Broccoli, Sweets and many more South Indian dishes.

Food companies should increase the promotion of RTE food to create awareness
among people about the concept of RTE food and convince customers about the
misconception about the added preservatives in RTE food.

There is great opportunity for Indian food companies to capture Indian food market as
well as food market of other countries. Top food companies say the market is currently
worth around Rs 50 crore in India but they confidently predict it will grow to around Rs
200 crore in the next one or two years. So there is a great future for food companies of
India.

ANNEXTURES

QUESTIONNAIRE

71

Respected Sir/Madam,

We, the students of Shri Sahajanand Institute of Management are conducting a

research on READY TO EAT FOOD market. We request you to provide information
required in the questionnaire.
___________________________________________________________________

1. In which kind of family do you live?

[ ] Joint family
[ ] Nuclear family
[ ] Live alone

2. Do you use or consume READY TO EAT food products?

[ ] Yes
[ ] No

3. If yes, [ FOR USERS OF READY TO EAT FOOD]

a) Why do you consume ready to eat food products?
[ ] Need.
[ ] Taste.

72

[ ] Reliability.
[ ] Price.
[ ] Freshness.
[ ] Quality.
b) Which companys READY TO EAT food product do you consume?
[ ] ITC.
[ ] MTR.
[ ] Satnam Overseas.
[ ] Tasty Bites.
c) How many times do you consume READY TO EAT food in a month?
[ ] 1-5 times
[ ] 5-10 times
[ ] 10-15 times
[ ] More than 15 times
d) How do you find the product?
[ ] Very good
[ ] Good
[ ] Average
[ ] Bad
[ ] Very bad
e) Any suggestion for Ready to Eat food products.
______________________________________________________________
__________________________________________________

4. If no, [ FOR NON-USERS OF READY TO EAT FOOD]

73

a) Which factors do affect for not consuming READY TO EAT food?

[ ] No need.
[ ] Taste.
[ ] Reliability.
[ ] Price.
[ ] Freshness.
[ ] Quality.

b) Will you consume READY TO EAT FOOD products in the future, if the
problems are solved?
[ ] Yes
[ ] No
[ ] Cant say

c) Any suggestions for Ready to Eat food

________________________________________________________________
________________________________________________________________
________________________________________________________________

PERSONAL DETAILS:

Name: _______________________________________________________

74

Age: ______________Sex: ___________ Occupation: _________________

Income: _______________________ Marital status: ___________________

Thank You

BIBLIOGRAPHY

WEBSITES:

75

www.indiainfoline.com

www.agriwatch.com

www.satnamoverseas.com

www.itcportel.com

MAGAZINES:

ICFAI journal of Marketing Management

PITCH

NEWSPAPERS:
Economics TIMES
Business Standard

Thank You.

76