Dun & Bradstreet India has reinforced its commitment towards servicing small and medium enterprises through the launch of its publication series, Emerging SMEs of India, brought to you in a strategic association with SME Rating Agency of India Ltd (SMERA). Emerging Food Processing SMEs of India is the third publication release in this sector-based series. The first two in the series, Emerging Auto Component SMEs of India and Emerging Textile SMEs of India were released in September and December 2006, respectively and have been very well received.

The SME segment has come into the limelight, with increased focus from several government institutions, corporate bodies and banks, and is rightly viewed as an agent of economic growth. In addition to the government’s thrust towards promoting the SME segment, several latent business opportunities have also opened up with globalisation and the sustained growth of India’s economy. However, there is a lack of structured information on India’s SME sector. A sincere attempt to fulfil this lacuna was the principal rationale in undertaking this exercise.

This unique publication is in recognition of the significant contribution made by SMEs to India’s industrial development. It is estimated that SMEs account for over 90% of industrial units in India and 40% of value addition in the manufacturing sector. They contribute 35% to India’s merchandise exports. This one-point reference document will provide a platform to enhance the visibility of these important constituents of the Indian growth story.

The food processing sector in India serves the vital function of linking the agriculture and industrial segments of the economy. It has the potential to transform the rural landscape of India by improving the value of agricultural produce, ensuring better remuneration to farmers and at the same time creating favourable demand for Indian agricultural products in the world market. Growing urbanization, consistent exports growth, increasing disposable income, emergence of organised food retail, changing lifestyles and food consumption patterns are the key factors driving growth of processed foods in India. The industry is expected to move up the growth curve quickly, considering the still nascent levels of processing at present and investment in this sector has been on the upswing. Small and medium enterprises continue to constitute a major presence in the sector and will drive many of the changes we expect in the near future.

Emerging Food Processing SMEs of India preserves the D&B commitment to providing information and knowledge that facilitate informed business decisions. D&B India has drawn on its time-tested expertise in the information business to the benefit of the small and medium companies, as this publication amply reflects.

Finally, I would like to thank the SME Rating Agency of India (SMERA) for their consistent support in this exercise. I am sure you will find this issue of Emerging Food Processing SMEs of India useful and I look forward to your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet