2

The Indian fruits and vegetable market is estimated over US$50 bn‚ but less than 5% of the produce is currently processed. This represents a significant opportunity – a larger percentage of fruit & vegetables will get processed as the market evolves. (Global benchmarks: 80% fruits & vegetables processed in Malaysia‚ 30% in Thailand‚ and 60–70% in the UK and USA.)

The fruit and vegetable (F&V) processing industry in India is highly fragmented and has historically been dominated by the small–scale sector. Consolidation and entry of larger players is also an emerging opportunity in the Indian Food & Vegetables processing & Food FMCG sector.

The Food FMCG market in India is currently over US$20 bn in value and is growing at 15-20% p.a. The demand for packaged food stems from the changing demographics and lifestyles of the burgeoning population‚ and of course‚ the growth of organized retail in India.

At Aurum‚ we believe that a robust and efficient F&V Processing is imperative for supporting the fast expanding Food FMCG market in India. In the recent past‚ we have seen some private equity investments in the F&V processing sector‚ and we believe there will be many more such opportunities in this sector going forward. Also‚ Food FMCG which continues to grow at a robust rate will remain at the forefront in attracting investments from not only private equity‚ but strategics as well.