This paper analyses efficiency and productivity changes in 50 firms of food manufacturing industry during the time period of 1988 to 2011. The firms included belong to different sectors of food processing which are mainly Sugar, Bakery Products, Beer and Alcohol, Dairy Products, Processed Food and Vegetable Oil and Products. The nonparametric Data Envelopment Analysis (DEA) approach is used to compute the Malmquist Total Factor Productivity (TFP) change, which has been further decomposed into efficiency and technical change. Profitability has been calculated with two different measures. Analysis has been done over four time periods that is 1988 to 1993, 1994 to 1999, 2000 to 2005 and 2006 to 2011. Based on the findings, the paper gives suggestions that can be used by policy makers and food processors in making decisions regarding various technical and managerial aspects to improve productivity and efficiency.