Driving Continuous Improvement in India’s Food Industry Post-M&A

India’s food industry, a $900 billion powerhouse, is undergoing transformative growth, fueled by urbanisation, health-conscious consumers, and robust government support. As Food M&A accelerates, achieving post-merger optimisation and synergy realisation demands a relentless focus on continuous improvement. LawCrust, a leading hybrid consulting firm, offers senior leaders and decision-makers a blueprint to navigate integration challenges and unlock enduring value in this dynamic sector.

Industry Overview & Context: A Vibrant Sector Demanding Continuous Improvement

India’s food industry spans agri-processing, packaged foods, beverages, quick-service restaurants (QSR), food delivery, cold chain logistics, and nutraceuticals. Contributing 12% to India’s manufacturing GDP and employing over 1.9 million workers, the sector is projected to reach $535 billion by 2025-26. The value chain from farm inputs (seeds, fertilisers, irrigation) to processing, packaging, distribution, and retail is overseen by regulators like the Food Safety and Standards Authority of India (FSSAI), Ministry of Food Processing Industries (MoFPI), Agricultural and Processed Food Products Export Development Authority (APEDA), and the GST Council.

Key trends drive M&A and underscore the need for continuous improvements. Urbanisation, with 35% of India’s population now urban and projected to reach 50% by 2047, fuels demand for ready-to-eat (RTE) foods, expected to hit ₹12 lakh crore ($150 billion) by 2025. Health-conscious consumers are propelling the organic food market to ₹75,000 crore ($9 billion) by 2025 at a 20% CAGR. Government incentives like the Production Linked Incentive (PLI) scheme and Pradhan Mantri Kisan Sampada Yojana (PMKSY) bolster food processing and cold chain infrastructure. The rise of Direct-to-Consumer (D2C) brands and e-grocery models intensifies competition, making continuous improvements critical for M&A success.

1. Recent Developments: Shaping the Industry (June 2025)

The food industry is evolving rapidly, with developments amplifying the need for continuous improvement:

• PLI 2.0 Updates: The second phase of the PLI scheme drives investments in manufacturing and R&D, encouraging consolidation and expansion.
• QSR Market Growth: India’s QSR market is projected to reach ₹80,000 crore, attracting domestic and international M&A activity.
• AI-Led FSSAI Compliance: AI-powered tools streamline compliance and enhance food safety standards.
• E-Grocery Surge: The e-grocery segment reports 30% year-on-year growth, reshaping supply chains and distribution.
• CPCB’s Plastic Packaging Guidelines: New environmental regulations push for sustainable packaging, impacting operations.
• Budget 2025 Highlights: Streamlined GST, enhanced input tax credits, and farmgate infrastructure investments support value addition and operational efficiency.

2. Key Post-Merger Challenges: Why Continuous Improvement is Critical

Food M&A promises growth, but post-merger challenges can erode synergies without continuous improvements. Misaligned processes create inefficiencies, while fragmented IT and CRM systems hinder data flow and customer insights. Under-realised synergies leave value untapped, and inconsistent compliance across merged entities risks legal and reputational damage. Workforce duplication and cultural clashes dampen morale and productivity. LawCrust emphasises that structured, long-term continuous improvements is essential for post-merger optimisation and synergy realisation.

3. Hybrid Consulting Strategies for Continuous Improvement Post-Merger

LawCrust’s hybrid consulting approach spanning management, finance, legal, and technology drives continuous improvement for post-merger success. Here’s how:

• Operational Excellence: The Core of Continuous Improvement

LawCrust conducts lean audits to eliminate waste and align KPIs across merged entities, ensuring unified performance metrics. We harmonise Standard Operating Procedures (SOPs) for consistent quality and efficiency. Workflow digitisation reduces errors and enhances transparency. Applying Six Sigma in food manufacturing units minimises defects and optimises processes, embedding continuous improvement in operations.

• Finance: Sustaining Continuous Improvement

LawCrust monitors ROI on integration spending to ensure value creation. We identify cost synergies, optimise working capital through efficient inventory and collections, and mitigate stranded costs from redundant assets. These financial strategies sustain continuous improvement and strengthen the bottom line.

• Legal & Regulatory: Building a Foundation for Continuous Improvement

LawCrust consolidates licenses and streamlines compliance to meet FSSAI and other regulatory standards. We ensure uniform food safety SOPs across facilities, minimising risks. Proactively managing M&A-driven liabilities, such as contractual or IP issues, supports a robust legal framework for continuous improvement.

• Technology: Enabling Continuous Improvement

LawCrust integrates Enterprise Resource Planning (ERP) systems for unified data management. We standardise procurement for cost savings and leverage IoT for supply chain traceability, reducing waste and enhancing recall capabilities. AI-driven performance benchmarking provides insights for targeted continuous improvement initiatives.

• Workforce Alignment: The Human Side of Continuous Improvement

LawCrust facilitates role realignment to eliminate redundancies and cross-trains employees to foster adaptability. We cultivate a performance-driven culture through clear objectives and feedback. Robust change management mitigates resistance, empowering employees to drive continuous improvement.

Illustrative Examples of Continuous Improvement in Action

Real-world cases highlight the power of continuous improvement:

• A merged dairy and snacks group, guided by LawCrust, conducted plant-by-plant process benchmarking. By replicating best practices, they achieved a 12% throughput increase within six months, showcasing operational excellence.
• A QSR merger leveraged IoT and AI for kitchen operations and demand planning. LawCrust’s technology integration reduced food waste by 18% in Q4 FY25, driving synergy and efficiency.

Conclusion

In India’s thriving food industry, Food M&A offers immense growth potential, but success hinges on continuous improvement in the post-merger phase. LawCrust’s hybrid consulting approach integrating operational excellence, financial prudence, legal compliance, technology enablement, and workforce alignment unlocks enduring value. By embedding continuous improvement across functions, senior leaders can overcome integration challenges, realise synergies, and secure a competitive edge in this dynamic sector.

About LawCrust

LawCrust Global Consulting Ltd. delivers cutting-edge Hybrid Consulting Solutions in Management, Finance, Technology, and Legal Consulting to ambitious businesses worldwide. Recognised for our cross-functional expertise and hybrid consulting approach, we empower startups, SMEs, and enterprises to scale efficiently, innovate boldly, and navigate complexity with confidence. Our services span key areas such as Investment Banking, Fundraising, Mergers & Acquisitions, Private Placement, and Debt Restructuring & Transformation, positioning us as a strategic partner for growth and resilience. With an integrated consulting model, fixed-cost engagements, and a virtual delivery framework, we make business transformation accessible, agile, and impactful.

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