India’s Rs 10,000 crore food equipment market expands

India’s commercial food service equipment industry, estimated at Rs 10,000 crore, is seeing double-digit annual growth as quick-service restaurants, cafes, bakeries, cloud kitchens and hotels expand across the country.

Technology and local manufacturing are also emerging as key factors supporting the sector, according to leading B2B equipment maker Trufrost & Butler.

Managing Director Neeraj Seth said greater exposure to global food trends through the internet and international travel, along with India’s young population, was driving double-digit demand for more sophisticated food and beverage offerings.

He said maintaining consistent food quality across outlets had become a major operational challenge as restaurant chains, hotels and QSRs continued to expand.

“Kitchen technology is playing an increasingly important role in ensuring consistency, with refrigeration systems, coffee machines and automated cooking equipment helping operators standardise recipes and processes across outlets,” ED Satish Dudeja said.

The commercial food service equipment market in India, covering both hot and cold equipment, is estimated at Rs 8,000-10,000 crore, with around 60-70 per cent of the market remaining unorganised, Seth said at the launch of the company’s fourth experience centre in New Town near here.

The company has similar experience centres in Mumbai, NCR and Bangalore.

Seth said the fragmented nature of the market also creates challenges in after-sales service, particularly for restaurant chains operating across multiple locations.

Trufrost & Butler has established a manufacturing facility in Bhiwandi, Maharashtra, through a technical collaboration as part of its efforts to increase local production, Dudeja said.

The company has shifted from importing finished products to assembling around 45-50 per cent of its products in semi-knocked-down and completely knocked-down formats, according to Seth.

The shift also comes amid increasing regulatory requirements, including Bureau of Indian Standards certification for imported equipment, he said.

Trufrost & Butler has secured BIS certification for nearly 100 equipment products, Dudeja said.

He said receiving BIS certification is a costly and lengthy process, but gradually increasing indigenisation would help reduce dependence on imports.

Localisation of components, however, remains at an early stage. Indigenous components account for around 10-15 per cent on a weighted average basis, mainly in areas such as basic electrical components and motors.

The company aims to increase domestic sourcing of components to around 50 per cent over the next five years in a phased manner, Seth said.

Trufrost & Butler currently offers equipment across categories including refrigeration, blending, coffee and cooking systems, while seeking to provide after-sales support nationwide.

With the commencement of manufacturing, Trufrost and Butler was growing at 60 per cent in the last year, compared to a CAGR of 45 per cent in the previous years of its operation.

The domestic brand began its journey some eight years ago and offers a complete range under a single roof, Seth said.

The expansion of local manufacturing and component sourcing could help reduce dependence on imported finished equipment while creating a domestic ecosystem for commercial food service machinery, he said.