July 21 2014 India, the sleeping giant is awaking

At this moment, Meyn plants in operation in India deploy a total capacity of 20,000 birds per hour. Orders in hand, including those under installation account for 19,000 birds per hour, which in other words means a doubling of the capacity. Do these figures only highlight the slow growth of Meyn’s market share or do they point to the insignificance of the Indian market? Neither in fact!

By mid 2015, when current orders become operational, Meyn’s market share will be just short of 2/3 of the total. And the fact, that by then, all processed chicken will amount to a mere 8% of three billion broilers that the Indians consume every year, shows an enormous potential for growth. Growth that will continue to be led by Meyn from its level of market dominance.

As always, the Indian market contradicts all global forecasts because of its own peculiarities. The present expansion arises from a combination of factors, some expected, others unexpected. The first market driver is the explosive growth of quick service restaurants, not in large cities, which the industry had wrongly been targeting so far, but in countless tier 2 and 3 towns. Next to this, is the ongoing and long overdue effort in metropolitan municipalities to discourage the wet market in the interest of hygiene.

Meanwhile, poultry integrators appear determined at last to build inventories of processed and frozen poultry to stabilize prices. And finally, India’s government is determined about revamping the retail trade format throughout the country in order to facilitate the growth of sales of perishable produce like frozen and chilled poultry.

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