Foreign Direct Investments (FDI) in Food & Beverages Sector in India-1: Lawyers Advice on Foreign Investments in India | Law Firm for Foreign Investments in India | FDI Attorney in India | India Business Entry | Legal Advice for Foreign Investors in India
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Entering the Indian Market:
• FDI up to 100%, under the automatic route, is allowed in food processing industries.
• Further, 100% FDI under government route for retail trading, including through e-commerce, is permitted in respect of food products manufactured and/or produced in India.
Best Locations:
• Delhi
• West Bengal (Kolkata)
• Karnataka (Bangalore)
Achievements Made by The Indian Corporations or in India:
• Revenue in the Food & Beverages segment amounts to US$ 5,880 million in 2020.
• The famous brand Maggi returned after the ban and through a lot of lab tests was proven to be safe for human consumption.
• The Indian natural healthy beverages recorded a robust 22% growth rate in 2016.
Demand in the Market:
• Revenue in the Food and Beverage industry is expected to show an annual growth rate of 14.4%, resulting in a market volume of US$ 10,058 million by 2024.
Existing Notable Players in the Market- Domestic and Foreign:
• Britannia Industries Limited
• Hindustan Lever Limited
• PepsiCo
• Dabur India Limited
• Godrej Industries Limited
• Cadbury Schweppes
Company Registrations, Compliances, Licenses and Permits which are to be procured:
• A business license from the respective city or state that enables the conduct of the business.
• Registrations under FSSAI:
a) Basic registration: All small business or start-ups which have an annual turnover of INR 12 lakh and above require this registration.
b) State FSSAI license: Companies with annual turnover of INR 12 to 20 crores are eligible for the state license.
c) Central FSSAI license: Large companies with annual turnover over and above INR 20 crores are eligible for central licenses.
• GST registration is also to be done for any business, to carry operations lawfully in India.
• Trademark registration is another registration that is important to protect brands and slogans that are unique to the business entity or person.
• Health and Trade Licenses from the Municipal Corporation,
• Environmental clearance,
• Registration under the police act of the respective city/state,
• Verification certificate under the Standards of Weights and Measures Act, 1976 for each of the outlets issued by the Department of Legal Metrology,
• Registration under the Shops and Establishments Act, 1988 of the respective state,
• Eating House License
• Liquor License.
Authored By: Adv. Anant Sharma