Food Business Parks Landscape of India: Building the Next-Gen Food Processing Ecosystem

Market Overview

Food Business Parks, or Mega Food Parks (MFPs, as they’re called in India), make for an efficient and smart way to democratize food value chains for everyone from farmer to consumer. A food business park is a large industrial estate & centralized operational system that facilitates efficient food production and streamlines the complete food processing value chain (farm to market/consumer) with shared modern infrastructure & technology.

Following the clustered hub-and-spoke model of business operations, food business parks have a Centralized Processing Center (CPC) (containing specialized facilities for food material cleaning, sorting, grading, packaging, and testing, as also, warehousing & cold chains management) as the hub, Primary Processing Centers (PPCs; at times, threshing, pulping, cleaning, sorting, and grading is also done here) as the primary spokes, and Collection Centers (CCs) located near farms as the secondary spokes. 

To farmers, suppliers, food processors, food entrepreneurs, distributors, and more, mega food parks offer benefits such as reducing food waste, shared modern technology & infrastructure, operational efficiency & reduced costs, food supply chain efficiency, and employment generation. While the food processing industry contributes around 9% to the Indian GDP, agriculture contributes around 18%. Food processing has also created over 7 million jobs & employment opportunities in the process. In 2024, the turnover of the food processing industry in India was around USD 354.5 million, It is expected to grow at a CAGR of around 10% during 2025-2030.

Market Growth Drivers & Emerging Trends

India has a total of 41 food business parks approved under the government’s Mega Food Parks (MFP) Scheme, now integrated into the broader Pradhan Mantri Kisan Sampada Yojana (PMKSY). Out of these, 25 are operational, and the remaining 16 are under implementation. Major states having mega food parks in India are Andhra Pradesh, Madhya Pradesh, Maharashtra, Punjab, and Uttarakhand. Currently, the government extends various financial grants, incentives, and subsidies to farmers, food processing entrepreneurs, infrastructure developers, retailers, and more. These facilities are provided under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and the Agro-Processing Cluster (APC) scheme under PMKSY. Furthermore, the factors driving the market growth are:

• A consistently rising domestic consumer demand for various processed foods is being seen across the country, driven by rapid urbanization and evolving lifestyles.
• Favorable government policies for food processing & upfront investment by the government have meant that food business parks are a big hit across all stakeholders.
• Technological advancements and quick adoption (AI, ML, IoT, and Cloud) have accelerated the growth of the food processing industry in general and mega food parks in particular.
• Food business parks are seeing active participation by farmers, retailers, and entrepreneurs. The next-gen food processing ecosystem has led to farmer empowerment and active stakeholder engagement.
• Increased exports and international demand are being seen from all Indian food business parks across food types. The US, UK, UAE, China, and Germany top this list.
• Emphasis on green practices and sustainability has meant that mega food parks ensure conservation of natural resources and sensitivity towards the environment.
• Cluster-based development and multi-pronged PPP (public-private-partnership) collaborations lead to economies of scale for food business parks, as well as streamlined supply chains and logistical efficiency.

 

Lucrative Investment & Business Opportunities

• Entrepreneurs can choose to set up a food processing unit (FPU) within an MFP. They would enjoy shared utilities & infrastructure, as well as ready access to suppliers, vendors, and similar businesses.
• Setting up a central (food) processing center (CPC) or a primary (food) processing (PPC) facility in an MFP would be better than starting it elsewhere in a stand-alone manner.
• Warehousing & cold chains management make for another lucrative investment opportunity in food business park space.
• Packaging solutions span across the food processing value chain and make for a sure-shot business opportunity in MFPs.
• Logistics & Supply Chain Management (SCM) is another hot investment area in food business parks.
• Agro-input manufacturing, such as fertilizers, seeds, and farm equipment, can be started at collection centers (CCs) located near the farms.
• Specialized firms and professionals can start training opportunities and R&D centers for farmers and processors in food business parks.

 

 

 

Major Players, Verticals & Locations

India’s journey toward organized food processing began in 2012 with the launch of the Srini Mega Food Park in Chittoor, Andhra Pradesh, marking the start of a new era in agro-industrial infrastructure. Since then, the ecosystem has expanded rapidly across the country. Andhra Pradesh also hosts the Godavari Mega Aqua Park in West Godavari, while Assam’s Northeast Food Park operates in Nalbari. In central India, facilities such as the Indus Best Park in Raipur (Chhattisgarh) and Indus Food Park in Khargone (Madhya Pradesh) strengthen local agro-value chains. Gujarat’s Agro Park in Surat, Cremica facility in Una, and Integrated Food Park in Tumkur highlight regional diversification.

Southern and western India features key hubs like KINFRA Park in Palakkad, Avantee Agro Cluster in Dewas, and Paithan Agro Zone in Aurangabad. Northern and northeastern regions are home to the Zoram Food Cluster in Mizoram, International Park in Fazilka, and Tripura Agro Zone in West Tripura. These parks integrate Farmer Producer Organizations (FPOs), cooperatives, and self-help groups (SHGs) with major processing firms such as Salai Agro Products and Sona Gold Agro Chem. This further strengthens supply chains and creates farm-to-factory linkages across India’s thriving food processing landscape.

Some major companies associated as retail partners with MFPs are Reliance Retail, Future Group, Patanjali Ayurved, Cremica Food Industries, Mondelez International, and Mars International India. Some warehousing, cold chain management & logistics firms associated with MFPs are Coldrush Logistics, Maersk, Shree Shubham Logistics, and Bigbasket. Food packaging companies associated with the same are Uflex, TCPL Packaging, EPL, and more.

How the India Watch can Help

In case you liked reading this article and found it worth your time in terms of your business goals, then we can take this further by providing you with a customized market report as per your needs. This will incorporate insights aligned with your business strategy, along with detailing the Indian food processing and mega food parks market opportunities & trends. That’s precisely what The India Watch can do for you!

You need a professional expert, who knows the pulse of Indian food processing and food business park markets, to research, analyze, and recommend the first few set of steps for you (such as the right sub-segment, the right time, the right place, the right people), before you lend your hard-earned capital to this space.

At The India Watch, we collaborate with companies, investors, and business owners wanting to explore prospects in India's rapidly growing mega food parks and food processing industry. We provide companies with data-driven insights and functional strategies to leverage this high-demand market. 

We help you evaluate the industry size, calculate the addressable market size, grasp the value chain from sourcing raw materials to acquiring end users, and conduct a detailed feasibility study to set up a food processing or food business park venture in India. We offer value across a range of segments, whether you are establishing a new facility, increasing capacity, or investigating collaborations in food processing in India.

We prepare stakeholders to make informed choices through our market research, feasibility studies, consumer behavior research, and financial modelling. We also map client acquisition methods, assess competition, and emphasize the applicable sustainability and regulatory frameworks. 

For further enquiries, reach out to us at info@theindiawatch.com. Let’s explore how we can create value together.