MAM
Indian Foodservice industry to reach Rs 5,52,000 crore by 2022 with a 10% growth
MUMBAI: Industry leaders of the Indian Food Service Retail sector today highlighted the upcoming golden decade of the growth in the industry driven by the changing consumer behaviours and influx of technologies within the business.
Speaking at FICCI’s Foodzania 2018 – The Food Service Retail Conference on the theme of ‘Changing Landscape of the Food Service Retail Industry’ here today, Mr Unnat Varma, Chairman – FICCI Task Force on Food Service Retail and MD – Pizza Hut India Sub Continent said that the Indian food service industry is at the cusp of a massive growth. He further added that the changing landscape of the food service retail industry is largely driven by the changing consumer behaviour which can lead the sector for a sustained double digit growth over a decade. “There is a huge consumer market, changing consumer habits, increase in disposable income, and as the industry has evolved, it has become bigger and better,” said Mr Varma.
Mr Jagbir Singh Sidhu, Chief Operating Officer (North), Diageo India said that the food services industry contributes significantly to the economy by creating millions of jobs. “With the advent of newer technology, the industry has seen a paradigm shift with consumers opting for ‘dining out’ experiences, making it an important partner for the beverage alcohol sector,” he added.
During the event, ‘FICCI – PwC report on ‘Changing Landscape of the Food Service Retail Industry’ was also released.
Mr Rahul Singh, President – NRAI and Founder & CEO – The Beer Café highlighted the significant role of food aggregators in increasing the consumption of outside food. He said that they are the creators of behavioral change among consumers that is going to increase propensity of dining out. “Next 10 years are going to be the golden decade from the perspective of consumption,” he added.
Mr Pravesh Sharma, IAS (Retd.), Former MD, Small Farmers Agri-Business Consortium (SFAC), Department of Agriculture, Cooperation and Farmers Welfare, ministry of Agriculture and Framers Welfare said that today the agriculture sector is more market driven, “For at least a decade-and-a-half, all the major trends in agriculture sector were signaled and driven by the market,” he said.
As per PwC, the overall food industry has grown by 10 per cent. Organized and unorganized players together are valued at INR 4.50 thousand crores, 25 – 30 percent of which is contributed by organized segment. Mr Varma added that true transformations are happening with use of technology; expectation from food eco-system is changing and food that is at heart of all services is being outsourced thus paving a way for double digit growth.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
