Beverages & Food Processing Times - January 2016

India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors

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42 Mega Food parks worth

Rs 2,000 crore to be set up all over India: Harsimrat Kaur Badal

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nion Food Processing Minister Harsimrat Kaur Badal said 42 mega food parks worth Rs 2,000 crore will be set in the entire country, out of which five have already been established.

"One of such food parks is at Fazilka in Punjab whereas 2 food parks at Ludhiana and kapurthala will be established with in next 2 years," she said here at village Behra at Dera Bassi after formally inaugurating the Centre for learning resources Development at L M Thapar School

of Management Thapar University Campus Dera Bassi.

On demand of Local Legislator N K Sharma, she gave the approval for establishing Mega Food Park at Lalru.

Union Minister said that these Food Parks will be having all facilities like Production, Processing Plant, Cold Store, Collection centre &Transports, besides this it will also facilitate the farmers by providing value for their hard work.

"One Mega Food Park provides employment to 30 thousand persons directly and will provide benefit indirectly to more than 1 lakh persons," she said.

Harsimrat said with the efforts of Dy CM Sukhbir Singh Badal, Centre has given its approval for making fuel (ethanol) from maize. This will expand the area under maize crop and farmers will also get value for their crops, she said.

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Food processing sector can generate employment for youth of the country: Tripura CM

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arkar was speaking at a conference 'Linking Prospective Food Entrepreneurs with Government Schemes and Market', organised by Assocham in collaboration with the Ministry of Food Processing Industries, Government of India.

Terming the food processing sector as a "sunrise' industry, Tripura Chief Minister Manik Sarkar said it has the potential to generate huge employment opportunities for the youths in the state and can be critical for country's growth.

The youth of the state needed to be provided with financial assistance to nurture their entrepreneurial skills and food processing is one sector that needed to be promoted aggressively, he said.

"The food processing industry is a sunrise industry which has the potential of dramatically improving rural livelihood opportunities and bridge the ruralurban divide. It is critical for the development of our country as it establishes vital linkages between the two pillars of the economy i.e. the agriculture and industry," he said.

Sarkar was speaking at a conference 'Linking Prospective Food Entrepreneurs with Government Schemes and Market', organised by Assocham in collaboration with the Ministry of Food Processing

Industries, Government of India.

A constructive partnership would transform the food processing sector of the country and thereby transform the fortunes of Tripura, he said and emphasised promoting the development of viable agri-business and agro-industry coupled with institutional strengthening and capacity building across value chain.

Jitendra Chaudhury, Lok Sabha MP from Tripura, in his address said while agriculture is the main occupation for the majority of the people in the Northeast, experts have said horticulture is a major contributor to the economies of the states in the region.

The agro climatic condition of Tripura is suitable for both agricultural and horticultural crops and a strong and effective food processing sector would play a significant role in employment generation as well as harnessing and exploiting local resources, he said.

Fruits like banana, pineapple, orange, papaya, lemon and vegetables like potato, ginger and others grown in the state would have good marketing scope if properly harvested, processed and packaged, he added.

S N Nundy, Managing Director of Matthews & Company, said that focus for development should be on food processing, which holds unexplored scope to strengthen Tripura's economy.

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Vol. 8, Issue 08 - January - 2016

BEVERAGE NEWS

Coca Cola to explore scope for Kinnow plant in Haryana

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n response to an offer from Haryana chief minister Manohar Lal Khattar, Coca Cola India president Venkatesh Kini assured to explore possibility of setting up Kinnow plant in the state.

Haryana chief minister has meet the beverage major's president during the one to one meetings at The Lalit in New Delhi. The meeting was part of the 'Happening Haryana Global Investors' Summit-2016'.

During the meeting Mr Kini informed the chief minister that Coca Cola India had started projects in two states for imparting training to the farmers in the field of organic mango farming. A similar project could also be launched in Haryana to promote the cultivation of organic mango, he suggested. Responding to the offer of the Chief Minister regarding Kinnow Juice Plant in Haryana, the company assured that a survey would soon be conducted to explore the possibility for the same.

National Green Tribunal concerned over pollution caused

by Coca-Cola plants

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industan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola has said that its plant in UP has been operating under requisite government licenses and registrations in relation to air, water and hazardous waste, following the environment watchdog National Green Tribunal (NGT) raising concerns about the beverage maker's 'pollution'.

According to HCCB said, "Every material aspect of the functioning of the plant was subject to the scrutiny of appropriate regulatory authorities and we have ensured compliance at all times.

NGT has issued a notice to HCCB and asked for explanations on its drainage plan of its plant at Hapur, Uttar Pradesh. The NGT report states that the Uttar Pradesh Control Board (UPPCB) is "directed to take note and take steps required in the interest of environment and in accordance with law". NGT will hear the matter next on January 14. The NGT said that it was issuing a notice to the NGT and directing the firm (Coca-Cola) to submit its drainage plan, explaining how sewage as well as trade effluents flow out.

This is not the first time Coca-Cola has been under scrutiny of authorities over its plants over water depletion.

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Vol. 8, Issue 08 - January - 2016

BAKERY

Cash in on the donut revolution!

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s consumers move towards fast foods and foods that can be eaten fast, one handy temptation is the Donut. With its soft bread like texture, its versatility and its ease of carry, the donut stands out within the patisserie world as a go-to for all those on the go. A simple grab and go option that can take on any flavour that you wish to add to it.

The donut is but ayeasted bread that is simple, and yet such a treat. Such is the following that the humble donut has that there are shops dedicated to simply churning out the perfect creation, jazzing up the flavours on offer, mixing and matching to raise it to an art form.So much of an art form that many shops have a cult following purely based on their genius donut variations.

The TEGRAL Donut from the house of Puratos is here to help make the donut making process a cake walk.

Puratos’TEGRAL Donut mix, comes in an easy to use avatar. This specially designed premix produces soft and melt in the mouth donuts that actually absorb less fat, proving to be healthier while being healthier to the bottom line of the bakery as well. Getting consistently great donuts that have superior volume and taste which is exactly the same every time. is one of the biggest advantages of choosing Puratos’ mix.

go-to choice when looking for custard cream type fillings. This bakestable, freeze thaw stable, ready to use offering provides superb and consistent taste while being time and cost efficient.

The Cremfil range transport the consumer to another world with just one bite of a donut filled with itl’s superior range of fillings. Available in Orange , Strawberry, Pineapple, Mango, Lemon, Blueberry Irish Cream , Vanilla & Caramel, the Cremfil comes backed by the Puratos commitment to quality& variety.

Puratos’ versatile products that bring the world to your table, allow you to experiment secure in the knowledge that these fillings are the best in

the business. Consistent quality, backed by world class technology is the answer to your quest for the perfect filling.

When the donut is filled with such quality can its coating be far behind?

Meet CARAT Coverliq, a new offering from the CARAT Compound range. The CARAT Coveliq with its extended shelf life, is the answer to all coating questions.

With the world preferring a chocolate dessert over any other more than 60% of the time, give the donuts the Puratos’ chocolate flavour advantage.

The Coverliq is specially designed to provide a thin layer of perfectly formed chocolate on the donut, proving to be not only an easy to use, cost efficient answer, but a superb tasting one as well.

A perfectly balanced chocolate flavour adds that extra oomph to the donut, increasing its appeal behind the glass, attracting customers with its very silky, smooth and shiny texture.

Requiring no tempering Coverliq has a number of

Puratos also provides filling & coating options which makes the donuts wow & the objective is to be a one stop solution for Donuts.

Consumers have opened their minds to trying new flavours and crave what their cousin in Boston enjoys--- making international flavours instant rages locally. Aided by the additional knowledge gained by travel across the globe, consumers are now looking to go global locally, all the while holding on to their comfort and familiar foods and surroundings.

Providing customers with a wide variety of flavourful filling options, Puratos’ Cremfil are the

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Beverages & Food Processing Times

other uses as well, it is the solution to all enrobing needs. A perfectly balanced compound that finds use in cookies, wafers, crunchy or soft items and many more.

Afterall a donut is so much more than just a sweet yeasted bread, it is but a blank canvas with which to wow the customer. To entice him with surprising flavours enrobed within a chocolate exterior maybe, or simply a simple cinnamon sugar coated temptation that sparkles as it catches the light on the way to your consumers’ home.

It is but the yummy in the tummy and the money in the pocket.

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Vol. 8, Issue 08 - January - 2016

FOOD PROCESSING NEWS

Jharkhand Food Processing industry gets Rs 880 cr investment

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harkhand has attracted over Rs 880 crore investments in the food processing sector since the state government formulated a policy for the industry a few months ago.

State’s Chief Minister Raghubar Das said, "We have already procured Rs 880 crore investment in the food processing sector ever since we have framed a policy for the sector."

Five of the investors already procured land for to set up units and are expected to start construction soon; Das said adding that there is no dearth of land in Jharkhand for development projects.

Investment scenario in the state got a boost following implementation of single-window and e-commerce system in the state, he said.

Stating that food processing sector have vast opportunity to grow in Jharkhand, Das said several investors have shown keen interest.

Andhra Pradesh targets around Rs 5,000 crore investments in Food Processing by 2020

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he Andhra Pradesh government is expecting Rs 5,000-crore investments in the food processing industry by 2020. It also aims to create 50,000 jobs in the sector in the state over the next five years.

The new policy aims to set up integrated food processing parks in all districts. As per the policy, each park will be set up in a minimum of 30 acre land and also with a minimum of 10 processing units. The state government has promised to provide 50 per cent of financial assistance for setting up of the park with a limit of Rs 20 crore.

Power for food processing units will be supplied at Rs 1.50 per unit. The government also promises to provide capital and interest subsidy and announced to provide 25 per cent capital subsidy for processing units limited to Rs 5 crore as per the policy.

On exports, 30 per cent of road transport charges will be reimbursed with Rs 5 lakh limit per annum for a period of 3 years.

Japanese food processing industrialists are planning to consider Andhra Pradesh as their second home and utilize all opportunities and resources available in the state.

Beverages & Food Processing Times

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Vol. 8, Issue 08 - January - 2016

FOOD SAFETY NEWS

FSSAI to set up nine new panels to expedite food regulatory mechanism

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egulator FSSAI has set up nine new panels for expediting work relating to strengthen the food regulatory mechanism in the country, the government said in Rajya Sabha.

The Food Safety and Standards Authority of India (FSSAI) have also notified 12 referral laboratories and 82 National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited private laboratories, Minister of State of Health and Family Welfare Shripad Yesso Naik said.

In addition, there are 72 State and Public food laboratories to test food samples.

"We are also planning the increase the number of laboratories. There should be at least laboratory in each district," he said while replying to questions.

Observing that the FSSAI makes standards while their implementation is the responsibility of the state governments, Naik said in a written reply, citing information from states and UTs, that as many as 74,010 food samples were analysed in 2014- 15 and 14,599 samples were found adulterated or misbranded.

On action taken against erring 'food business operators', it said 10,536 cases were launched in 2014-15 and there were 1,402 convictions. Also there were 2,795 cases involving penalties and about Rs 10.93 crore were raised.

World Class Laboratory Testing Services

NRGene Delivers 80 Complete Genomes in 12 Months

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ssembles first few wheat genomes plus dozens of maize, and other field crops, fish, forestry, fruits and vegetables NRGene has assembled more than 80 complete genomes to a 99% accuracy over the past 12 months – a new genome every 4.5 days on average – for companies like Syngenta, nonprofit research centers like the International Maize and Wheat Improvement Center (CIMMYT) and major universities around the world, such as Illinois, California-Davis and Tel Aviv.

DeNovoMAGICTM technology combines information gleaned from existing plants and seeds with big data analytics to create complete assemblies even of the largest and most complex genomes. Before NRGene’s technology, genome assemblies could take decades and cost many millions of dollars. Assembling heterozygous, diploid, and polyploid genomes now takes only days or weeks.

“Overall, the quality is breathtaking,” says Dr. Nils Stein of Germany’s Leibniz Institute of Plant Genetics and Crop Plant Research (IPK) and one of the world’s leaders in plant genomics.

“NRGene’s results are just amazing and will have a major, major impact.”

NRGene’s technology creates a flood of highquality, practical and usable data that can be utilized for real-world applications such as using pinpointed trait analysis to deliver better crops.

“DeNovoMAGIC version 2 only came online early in 2015, so we see 80 genomes as just a remarkable beginning,” says NRGene CEO Gil Ronen. “It’s a cliché to discuss how a technology has changed the world, but the data that scientists get from NRGene’s analyses will really have a direct impact on billions of lives.”

Research & Analysis Centre: Subhas Nagar, P.O.-Nilgunj Bazar, Barasat, Kolkata-700121 Phone: +91-3371122800, Fax: +91-3371122801, Email: efraclab@efrac.org, crm_iq@efrac.org, W: www.efrac.org

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Siliguri:

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Vol. 8, Issue 08 - January - 2016

NEWS

Lalji Godhoo State of the art processors of Asafoetida in India

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ince last 90 years, the company is engaged into the business of asafetida. Harnessing the rich expertise, they have become a trusted manufacturer, exporter and supplier of Asafoetida, Red Asafoetida, White Asafoetida, Compounded Asafoetida, Compounded Hing, etc.

Their range is reckoned in the market for pungent smell, original flavor as well as smell. The array is processed by experts to keep its natural elements intact. Safely and hygienically cultivated and processed, the collection is sure to add excellent flavor & rich aroma to the delicacies. The range is packed in quality packing to ensure long shelf life.

Infrastructure Their production facility is located at Andheri, Mumbai, and they also have a business associate at Nasik, where their plant is totally equipped for production.

Our Marketing Network Company’s sales outlet at Mumbai caters to the export market and western, northern, eastern and central Indian market. They have two branches in Tamil Nadu that cater to the entire Southern Indian market. Besides, they have a wide network of over one thousand stockists, depot agents and distributors spread across the country, to reach every nook and corner of the industry.

Potential Lalji Godhoo has been a highly responsible corporate in the country as they have maintained a congenial working environment in their production house. As a result, they have a very high level of commitment from workers and employees to the company. A few of the leading stockists of the company have been second and third generation stockists of LG, having cemented a close business relation with the company over the years. They have instituted, over fifteen years ago, an award to be given every year to the most outstanding young scientist of the Central Food Research Technological Institute, Mysore.

Product Range The finished product of the firm is mainly of two varieties namely lumps and powder. The product is sold in 50gm., 100gm., 200gm. and 500gm. packing.

Processing Infrastructure The firm has state of the art blending and processing facilities at MIDC, Andheri in Mumbai.

Blending and processing is also undertaken by associate concern at Nashik, Maharashtra. Our finished product is packed in small packings at MIDC factory, Andheri and also at two branches in Tamilnadu, namely at Chennai and Kumbakonam.

Special care is taken to ensure that flavour, aroma and freshness of the product is retained.

Potential Lalji Godhoo has very good relations with their workers and staff. They ensure that they get good remuneration and congenial working conditions.

This along with selective purchase policy has made it possible for them to maintain high quality and resultant persistent demand for product

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Vol. 8, Issue 08 - January - 2016

Beverages & Food Processing Times

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Vol. 8, Issue 08 - January - 2016

FOOD PROCESSING NEWS

McDonald's going for brand extension business in India

Packaged Food Market to touch $50 bn by 2017: Study

brand extension lines don't cover all our restaurants. We are working on it. For instance, we have opened 52 McCafe.

In three years, we expect our coffee business to earn around Rs 250 crore," he said.

McCafe is a coffee-house-style food and drink chain owned by the burger chain. Interestingly, it has yielded more revenues for McDonald's than its regular stores in some markets. McCafe are housed inside regular McDonald's in India.

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cDonald's is doing its brand extension business in India. Although burgers continue to be the backbone of the US fast food chain, it now earns a fourth of its revenues from ice cream, smoothies and coffee.

To speed up its brand extension business, the company has started a remodeling exercise to make its stores look fast-casual in South and West India. "We are trying to blur the line. This is what McDonald's will look like to millennial in the future," said Amit Jatia, vice-chairman of Westlife Development and McDonald's partner in West and South India.

The burger chain has four brand extensions: Delivery, breakfast, dessert kiosks and McCafe.

Jatia said sales value of these may touch Rs 850 crore in four years. Along with selling burgers, that's roughly the sum Jatia makes from 216 McDonald's stores in the country.

Jatia said he has earmarked an investment of Rs 750 crore to open around 200 new restaurants in five years. His company Westlife Development operates McDonald's stores through its subsidiary, Hardcastle Restaurants. While Westlife reported a 21% increase in revenue for the September quarter led by its restaurant business, McDonald's has been juggling with the dual problem of a sluggish economy and a legal battle with its estranged partner in North India, Vikram Bakshi, the owner of Connaught Plaza Restaurants.

One of the first international quick service restaurants (QSR) to enter the domestic market, McDonald's was ousted from the position of the country's largest QSR player by US pizza maker Domino's in 2013. Subsequently, it slipped behind its US rival KFC and now resides in the third position, according to a Euromonitor report from August. The organized QSR business in the country is poised to grow at a CAGR of 25% to reach around Rs 16,800 crore by 2018, Jatia said.

meals at least 10-12 times per month in some form or the other.

Assocham Secretary General D S Rawat said, “The consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-paced, attracting lot more companies to launch new types of products and variants," The paper also pointed out that there is a large divide between urban, semi-urban and rural consumers. Urban areas account for 80 per cent of the demand for all packaged food.

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survey by industry body Assocham Country's packaged food market is set to witness a quantum jump to $50 billion by 2017 from $32 billion at present due to increasing popularity of ready-to-eat items.

"There has been a major shift in food habits in the metropolitan cities. About 79 per cent of households prefer to have instant food due to steep rise in dual income level, standard of living and convenience," said the survey.

The poll highlighted that 76 per cent parents, mostly both working, with children under fiveyears in the big cities, are serving easy-to-prepare

The survey noted that about 76 per cent nuclear families feel they have less time to spend in the kitchen, while nearly 79 per cent bachelors prefer convenience food. It is in this background that home delivery business model for cooked food has grown multi-fold, it said.

The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat, health products and drinks.

Food manufacturers have also started concentrating on manufacturing new innovative food products and ready-to-eat processed food to keep up with the ever changing tastes of consumers.

To revamp livestock J&K frames Rs 2,000 crore Nestle India all ready to launch vision document more variants of Maggi

"However, I want to be clear about the fact that our

have been proposed in the document.

"With the vision of this government and flow of funds from Union Government, the state will achieve self-sufficiency in production of milk, meat and poultry", said the Minister.

"We have performed all due diligence before coming back into the market."

On sales of Maggi after its relaunch, he said Nestle has sold 5060 million packs of Maggi noodles so far after against 300-400 million units it used to sell in in full year before crisis.

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month after Nestle India relaunched Maggi noodles in the Indian market, the company is getting ready to launch other variants of the brand such as oats noodles and cup noodles in 3-4 months.

The company relaunched Maggi masala noodles on November 9, five months after it was banned by the FSSAI following a Bombay High Court order.

Last week Supreme Court had ordered re-testing of Maggi noodles by an accredited laboratory at Mysore and not in Chennai as sought by the National Consumer Disputes Redressal Commission while staying the proceedings in connection with the government's Rs 640 crore law suit against the company that is pending with the apex consumer body.

When asked about the apex court order, Nestle India CMD Suresh Narayanan said: "The matter is subjudice, samples are being sent to to CFTRI Mysore, so I don't want to comment on it but I would say that it is question of trust and credibility of Nestle organisation.

When asked the company is expected reach pre-crisis level sales, Narayanan said: "Can't say when Maggi sales will reach precrisis level. We are ramping up productions at all our five plants and also ensure we each all-out distributors."

Before the ban, Maggi noodles were distributed through 1,500 distributors across country.

"Right now we are selling through 1,000 distributors...we are ramping up our distribution network and we plan to reach all 1,500 distributors soon," he added.

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ith an aim to achieve self-sufficiency in poultry, meat and milk by 2025, Jammu and Kashmir has formulated Rs 2,000 crore vision document to revamp the livestock sector and submitted it to Central government.

Minister for Animal, Sheep Husbandry, Fisheries and Science & Technology, Sajjad Ahmad Lone said, "The vision document has been formulated and it is a road map has been designed to revamp the livestock sector with a target to achieve selfsufficiency in poultry, meat and milk in the state by 2025".

Sajjad said the vision has a financial envelopment of Rs 2031.23 crore.

In order to give fresh impetus to livestock sector in the state, a vision document 2025 has been submitted to Central Government, he said. "The vision document was firstly presented to Union Secretary and his team at Krishi Bhawan Delhi and was agreed to in principle," said the Minister adding that today's threadbare discussion is a step forward making the vision transferred into the realty.

Giving details, the Minister said that Rs 814.79 crore have been proposed for dairy development, Rs 423.44 crore for poultry development, while as for Sheep sector the proposal is of Rs 380 crore and for feed and fodder development Rs 413 crore

Beverages & Food Processing Times

He said that the vision document has the potential to mitigate huge annual capital flight of Rs 3500 crore on purchase of poultry and meat in the state and help in making the state a surplus in the production.

He assured full support from the Union Ministry in making the vision a success.

He gave various suggestions to further translate the document so as to make it operationalize on ground. He also stressed to hold workshops at district level to aware people about the vision document.

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Vol. 8, Issue 08 - January - 2016

BAKERY

Competition heats

cake market; changing taste, consumption rise transform Rs 2k-crore sector

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ising consumption, shifting preferences and the emergence of small producers are among the changes transforming the organised cake industry as India gets set to celebrate Christmas and the New Year.

Competition is intensifying in the Rs 2,000-crore organised cake market. Sensing the potential,

biscuit majors like Britannia & ITC are focusing more on the segment.

"The cake market is seeing an exponential growth and lots of small players are entering the fray.

But as the market is expanding, our share has not been affected much," said Ayyappan K Swamy, head of marketing and franchisee operations at Monginis Food Private, present in the cake market in Maharashtra, Goa and Gujarat.

The fresh cream cake market has become highly fragmented with several local bakers holding sway in a particular region. Dry cakes with a longer shelf life, however, are finding steady demand across India. The unorganised cake market in the country is estimated to be as big as the organised one.

Although cashew and cocoa have become dearer, the prices of key ingredients such as flour and sugar haven't increased. As a result, retail prices have remained steady. "Cake sellers are now selling the product in smaller packets of 300 and 200 gm. Earlier, there was only 1 kg and 500 gm," said TR Raghulal, MD of the Rs 500-crore Elite Group, a major cake manufacturer.

Manufacturers are more worried about the shortage of workers and mounting labour costs. Consumer preferences have changed with greater demand for valueadded fresh cream cakes. "For instance, many want chocolate cakes with caramel, vanilla, fruits or fresh cream instead of the plain variety," Swamy said.

Cake consumption is on the upswing in Karnataka and Tamil Nadu, while the Kerala market with high per-capita consumption is moving more toward premium varieties, according to Raghulal.

Fresh cream cakes have virtually replaced plum cakes with icing. But plain plum cakes filled with dry fruits are still in demand.

"Dry cakes like plum cakes are preferred for corporate gifting (but) individuals prefer fresh cream cakes now,'' said Vijesh Vishwanath, director of Best Bakers, a dominant player in the central Kerala.

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Vol. 8, Issue 08 - January - 2016

DAIRY NEWS

Godrej Agrovet buys 25 per Milk surplus puts pressure cent stake for Rs 150 crore on prices, dairies want it part of mid-day meal of Creamline Dairy's across southern states such as Andhra Pradesh, Tamil Nadu, Karnataka and parts of Maharashtra. The company has 29 milk chilling centres of its own and nine belonging to its associates.

Marketing Federation said, "We are trying to procure as much milk as we can, ensuring that farmers get remunerative prices. However, the scene is not same across most parts of north India where farmer's prices have crashed."

Godrej Agrovet clocked revenues of Rs 3,843 crore for the year ended March 2015.

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he Godrej Group firm has bought a 25 per cent stake in Creamline at an enterprise value of about Rs 550 crore, taking its total holding in the dairy firm to 51 per cent. Godrej Agrovet (GAVL) had bought 26 per cent of Creamline in 2005.

Balram Singh Yadav, managing director at Godrej Agrovet, said the company spends roughly Rs 150 crore on the latest deal.

Yadav said, "As the company embarks on its ambitious future growth plan, we believe GAVL will be able to bring in significant value to the business by helping it develop successful brands and add more valueadded products to its current portfolio."

Creamline, with a capacity of nearly seven lakh litre of milk processing a day, posted revenues of Rs 858 crore for the year ended March 2015. It sells milk and other dairy products under 'Jersey' brand

India is both the largest producer and consumer of milk, but the market is highly fragmented with only 20 per cent market share for organized players. The largest player, Gujarat Cooperative Milk Marketing Federation that sells under Amul brand has only 5 per cent market share. Multinationals such as Unilever and Danone have largely been operating in segments like yoghurt, flavoured milk, cheese or ice creams.

Last year, French diary major Le Groupe Lactalis had purchased Hyderabad-based Tirumala Milk Products, the second-largest dairy company in South India, for Rs 1,750 crore.

Billionaire Ravi Jaipuria, PepsiCo's biggest bottler in

South Asia set to enter Dairy business

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ndian billionaire Ravi Jaipuria, PepsiCo's biggest bottler in South Asia, is looking to enter the country's highly unorganised Rs 3 lakh-crore dairy market by extending his Creambell ice cream brand.

Jaipuria, who also runs the largest Indian franchisee of KFC and Pizza Hut restaurants and has exclusive franchise rights for coffee chain Costa Coffee, is looking to buy a dairy plant here to manufacture value-added dairy products such as cheese, butter, lassi and yoghurt.

Industry experts say Jaipuria's move is strategic since PepsiCo chief Indra Nooyi had said the food and beverage major will explore bringing dairy products into India such as ready-to-drink breakfasts. PepsiCo's rival Coca-Cola is also firming up plans to enter the sector.

Dairy sector will get hotter in the future. If PepsiCo shows an interest in it, Jaipuria is ready to tie up with them.

At present, Jaipuria operates two dairy brands in Africa, Creambell and Daima.

India may be one of the largest producers of milk but per capita consumption is very low compared to the developed markets.

Consumption can only grow when value-added dairy

products become a part of the daily diet of Indian consumers like it has happened in the West. The market for value-added dairy products in India is in a nascent stage. For instance, branded dahi yoghurt) is just 10% of the total dahi market in the country. These products add to a company's bottom-line since margins from plain milk are so low.

India's dairy industry is likely to see high growth rates in the future, according to the National Dairy Development Board (NDDB). Demand for milk is set to touch 200 million tonnes by 2022 from 132 million tonnes in 2013, revealed a CARE Ratings report. Interestingly, value-added dairy products, such as yoghurt and lassi, have higher margins (12-18%) than milk (4-5%), attracting a slew of big private players such as Nestle, Amul, Mother Dairy , Britannia and Danone into the fray . Even Kolkata-based cigarette and FMCG player ITC has recently announced plans to enter the sector with a range of value-added dairy products.

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"To ensure that supplies are not affected next year states needs to get milk under mid-day and the anganwadi programmes," he said. Amul is currently procuring an average 200 lakh litre of milk from Gujarat and other states every day as against its annual average of 170 lakh litres daily.

Mother Dairy, which markets about 37 lakh litre of milk a day, has also seen an increase of 30% in milk procurement over the past five months.

Most cooperative dairies in north and central India are now procuring 20-30% more milk every day than their annualized daily average, and they are urging state governments to include milk in their mid-day meal and anganwadi schemes to deal with h excessive milk flow and prevent a price fall that would hurt farmers.

RS Sodhi, MD at Gujarat Cooperative Milk

"Farmer producer companies are bringing excess milk to us," said Ashok Kumar Tripathi, general manager for milk procurement at Mother Dairy.

He said after selling 30 lakh litre liquid milk in the market, the cooperative will use excess milk to make 13,000 tonnes of skimmed milk powder, which is used to make milk in the lean summer season, and 9,000 tonnes of white butter. With production on the rise, milk prices are under pressure.

here is a milk glut in the country as all the extra milk produced in the winter season is flowing into dairy cooperatives because private firms exporting skimmed milk powder and casein have withdrawn from the market due to fall in global prices.

Organised Dairy market to perform better in next three years:CRISIL

I

ndia’s Rs.75,000 crore organised dairy market may perform better over the next three years as rising disposable incomes lead to rapid conversion to branded dairy products, a report by ratings agency Crisil Ratings said.

Revenue from the share of organised dairy segment could rise to 25% by 2017-18 from 19% in 201415, the report said. The organised dairy industry grew at a rate of 22% a year in the past five years, against 17% for the entire dairy industry.

Urban households across India are switching to branded products at a much faster pace aiding the growth of categories that have traditionally been made at home.

As the consumer shift accelerates, Crisil expects the organised channel to incur a capital expenditure (capex) of Rs.15,000 crore by 2017-18 to raise milk processing capacity to 1,050 lakh litre per day, a 40% increase from fiscal 2014.

“Northern India, especially Uttar Pradesh, Punjab and Haryana -- which are big on milk production but have low organised dairy penetration -- will witness the highest capacity addition,” said Anuj Sethi, director, Crisil Ratings.

A third of the overall capex is expected to be undertaken by the largest domestic dairy player, Gujarat Co-operative Milk Marketing Federation (Amul), the report added.

Valued-added products have grown faster than packaged milk as households buy more packaged curd, paneer, butter and cheese, according to the report.

The share of value-added products in fiscal 2015 is

Beverages & Food Processing Times

estimated to be 43%, up from 35% in fiscal 2010.

Over the medium term, demand for branded milk and value-added products is expected to grow 1315% and 22-24%, respectively.

To be sure, an average Indian household’s share of expenditure on milk and dairy products trails expenditure on cereals. Dairy consumption in most markets is linked to rising income levels, as households tend to consume more proteins.

According to data attributed to Amul, as income levels have grown (especially in developing markets) consumption of fat and protein has increased with a reduction in dependence on cereals for carbohydrates.

Most dairy companies and cooperatives have grew on the back of rising demand both in urban and mid-tiered markets.

Most large consumer companies have promised investments in packaged dairy products.

Kolkatabased ITC Ltd recently launched packaged ghee, while biscuit maker Britannia Industries Ltd has pronounced its plans to invest heavily to scale up its dairy business. Mumbai-based Parag Milk Foods Ltd is expected to tap the public for Rs.325 crore in early 2016.

Investments in the sector, which has seen Rs.900 crore investments since 2010, will continue over the next couple of years, the report added.

Dairy is among the top 10 sectors monitored closely by private equity companies. PE activity in the sector jumped from 2% of total investment a decade ago to 6% now.

11

Vol. 8, Issue 08 - January - 2016

INTERVIEW

PAPER IS

THE ECO-SOLUTION FOR FUTURE PACKAGING IN INDIA In an candid conversation with the, Segment Director – Flexible Packaging & Formable Packaging, Armin Van Overbeek, our Editor, Firoz H Naqvi, found out the innovation and importance of paper packaging in food industry and how conducive would paper packaging be in India.

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. Their primary fibre material can replace plastic, glass and metal in applications where previously it has not been possible. One example is the classic Tetrapak carton that has revolutionized packaging of dairy products and beverages.

W

hy choose paper from BillerudKorsnäs as a packaging material?

Paper is renewable. It is the best material in the world. It is made from growing, renewableresources. But it is important to choose the right kind of paper from sustainable sources from forests where growth is strong and the natural environment is healthy. Preferably from Sweden!

Paper is Recyclable! It is an excellent material for recycling – cost-effective and simple. A paper fibre can be recycled between five and seven times before it’s worn out. Fresh fibres must continuously be added to maintain the recycling loop and this is where BillerudKorsnäs comes into the picture.

Fibre-based packaging biodegrades if it ends up in nature. Often, it can even be composted. Plastic bags can take 500 years to break down. The Pacific Ocean is estimated to contain enough plastic waste to cover the area of the USA twice over. Choosing paper over plastics makes a big difference.

Paper is environment friendly but at the same time it is associated with cutting of trees…and if excess of paper is used there will be no trees left and the environment will suffer. How do you deal with this fact?

Forests are our valuable raw material and carefully managed sources. Using forests with the future in mind is essential for our long-term survival.

BillerudKorsnäs’ raw materials are taken from responsible forestry where replanting is a matter of course. Around three-quarters of the wood we buy come from Sweden. The rest comes from carefully managed forests in the Baltic States and Finland. We work with the FSC® and PEFC™ certification systems, which guarantee that our wood raw materials can be traced back to their origins.

Many people believe that it’s better for the environment to leave forests undisturbed than to make use of them. But the active forestry increases sequestration of carbon dioxide from the atmosphere since growing trees absorb more carbon dioxide than older, mature trees. Choosing paper from actively managed forests can therefore help to combat climate change.

In total, Swedish forests’ net binding of carbon dioxide is greater than half of all the emissions in Sweden.

Sensitive areas must be taken into account in order to protect the forest ecosystems which are home to thousands of species. Every year, large areas are protected by being excluded from harvesting.

While some of these measures are required by law, many are also voluntary.

What about the production of your materials?

It is an environmentally sound production. We use the whole tree after harvesting – the parts that aren’t used for product manufacturing are used to provide energy for our processes. Our

BillerudKorsnäs is the world’s leading providers of primary fiber based packaging materials and have customers in over 100 countries. It has 8 production sites in Sweden, Finland and the UK and about 4300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 21 billion and is listed on Nasdaq Stockholm.

The company puts packaging into a greater context to save resources, grow brands and increase profitability.

Scandinavian mills are nearly self-sufficient in energy and more than 97 percent of the energy requirement is provided by biofuels. During production excess heat is created which is transferred to the local community via district heating networks. That way even our neighbor’s need for energy from fossil fuels is reduced. A local effort with a global impact!

It’s always smarter for the environment if paper production takes place where there are large water assets. Sweden has around 100,000 lakes bigger than 10,000 m2 and Finland has almost as many.

BillerudKorsnäs’ mills are situated near lakes and rivers that we can borrow a lot of the water from. After use, process water is cleaned in biopurification plants before it is released back to nature. A large amount of the water we use is just for cooling and doesn’t need cleaning at all.

In order to get permission for our activities we have to ensure that ecosystems are not damaged and that animals are breeding normally. Continuous checks of the watercourses near our mills show a well-balanced natural environment.

BillerudKorsnäs’ sustainability report is controlled in accordance with GRI G4 and is reviewed and verified by external auditors. We also report to CDP, EcoVadis and Dow Jones Sustainability Index.

Paper has its limitations, it is not as stronger or flexible as plastics; so will paper be able to challenge the market of plastics?

we use. With flexible packaging you combine the best of both worlds. You reduce the total amount of plastic, using only the quantity necessary to provide the barrier required.

brands are regarded and how well they sell.

Packages made of our materials are natural, tactile and attractive, stand out on store shelves and sell better

Our paper products have the right strength, stiffness and surface properties needed for demanding lamination, extrusion, metallising and printing processes.

Few things are more harmful to the environment and profitability than unnecessary waste. And as we know, consumers always choose undamaged, clean and attractive packaging. A strong base paper reduces the risk of waste.

What are you planning to offer here in India?

What we would like to bring to this market are the materials but also the solutions. We have a lot of knowledge, we have a huge network of companies we work with; could be machine producers, converters, or could be designers. So we know that when we talk to a brand owner we can actually help him with all our connections.

Flexible packaging also saves energy and fuel. It weighs less and takes up less space than bulky rigid packages. Compared to heavy materials such as glass and aluminium, flexible solutions are clearly much better at saving resources.

One good example of all that is FibreForm® .

It is the paper with revolutionary stretchability that allows you to replace plastics in areas where this has never been possible before. FibreForm® enables you to create unique exciting packaging shapes for a range of consumer products. It is also an excellent choice for fresh foods such as sliced ham or perhaps fresh pasta. In thermoforming processes, the paper can be shaped, filled and sealed in one single process. A thin film that protects against light, moisture and bacteria makes the packaging just as safe as a traditional plastic tray.

We know that packaging is a vital part of how

With strong paper based on primary fibres, you can reduce the amount of material you need and still achieve an excellent result. This leads to environmental advantages throughout the production chain with lesser raw material used and less need for transport. High performance in sustainability and improved profitability often go hand in hand.

BillerudKorsnäs’ full product range is specifically designed with demanding processes and effective lamination in mind.

We also offer revolutionary new ways of replacing plastics in areas where this has never been possible before.

For sustainable development to be possible we must reduce the amount of fossil materials

Beverages & Food Processing Times

We can sell our products to the packaging producers but we can also help them with their needs. We can also help them with sustainability profiles, performance of the package, and we can help to communicate the brand value of their products through packaging and this something we cannot oversee.

You attended a two days seminar and exhibition on packaging industry in Mumbai (Near the time of interview). What type of response did you get there?

The response was very positive, the people were coming directly after the presentation to discuss and ask questions. I think we have a lot of things we can do to show them the potential of paper packaging and solutions.

We are also looking for partners in the value chain like we have been doing in other countries. We have started to make an interesting network.

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Vol. 8, Issue 08 - January - 2016

FOOD SAFETY NEWS

Government thinks over Rs 1750 cr proposal to strengthen FSSAI, state Food regulators

Up to 70 per cent of dietary supplements in India fake major areas of opportunities for nutraceuticals players in the coming years driven by rising demand from an evolving customer base with middle class population being the major consumers in this regard,” highlighted the study.

which includes about over Rs 800 crore for the FSSAI and the remaining amount for the state food regulators.

The Secretary said there are about 160 labs for testing of food in the country, out of which 72 are in the government sector and 80 odds are private accredited labs.

F

aced with criticism from industry over approval system for food products, the government is mulling an Rs 1,750-crore proposal to strengthen central food regulator FSSAI as well as state bodies.

The government is working on strengthening the FSSAI and state FDAs through capacity building that includes setting up of new testing laboratories and upgrading the existing ones, and it is focusing on increasing awareness about the importance of food safety.

"We have formulated a scheme for that (capacity building) and that scheme was for both food and drug. The drug part has been approved by the Cabinet recently in the month of August and there is a similar proposal for the food which is likely to be approved by the competent authority soon enough," Health Secretary Bhanu Pratap Sharma said.

He said the proposal, once approved, would definitely give a strong boost to the capacity building of the laboratories and other food regulatory set-ups.

According to sources, the Health Ministry has moved a proposal for granting Rs 1,750 crore,

The ministry has evaluated all the government's labs to find out the deficiencies, Sharma said.

Sharma also mentioned that the FSSAI only sets standards for different food products and the implementation is done by the state governments.

The FSSAI has come into limelight after it imposed the ban on Maggi in June this year, which was later lifted by the Bombay High Court.

In August this year, the Supreme Court junked the FSSAI's advisory that asked manufacturers to get clearance for products even if the ingredients were already approved or deemed safe.

After Maggi ban, industry as well as Food Processing Minister Harsimrat Kaur Badal criticised the FSSAI. She had said that the FSSAI's decision created "fear psychosis" in the food processing industry.

Food regulator FSSAI, which comes under ambit of Health Ministry, lays down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption.

A

bout 60-70 per cent of dietary supplements being sold across India are fake, counterfeit, unregistered and unapproved, notes a recent study released by Assocham-RNCOS. “The dietary supplements market in India is currently estimated at about USD2 billion and is likely to almost double by 2020 thereby clocking a compounded annual growth rate (CAGR) of about 16 per cent during the course of next five years,” projected the study titled ‘Indian nutraceuticals, herbals and functional foods industry: Emerging on global map,’ conducted by Assocham jointly with business consulting firm RNCOS. According to a survey conducted by the Assocham Social Development Foundation across top Indian cities in 2012, about 78 per cent adolescents in urban India daily consumed dietary supplements in one or the other form to enhance their physical appearance, improve immunity and increase their energy levels undermining the various side-effects of such supplements.

“Vitamin and mineral supplements will form

As per current market segmentation, vitamins and minerals account for lion’s share of about 40 per cent in Indian dietary supplements market followed by herbal supplements (30 per cent), probiotic (10 per cent), omega-3 fatty acids (five per cent) and proteins, amino acids and other essential elements together account for the remaining share of 15 per cent.

“Small committees should be built at block levels to check the prevalence of counterfeit products in the market and immediately discard them as they bring bad name to the industry,” suggested the study.

Dietary supplements (mainly vitamins and minerals) are primarily produced by pharmaceutical companies and are predominantly prescription-based, recommended by physicians, nutritionists, gym instructors and others who act as major influencers.

Higher purchasing power has made people more health conscious and prompted them to adopt a healthy diet routine completed with consumption of nutritional supplements. Dietary supplements are sold in many forms like tablets, capsules, soft gels, gel caps, liquids and powders. These products are readily available to consumers through chemist shops and online channels.

One in ten people fall ill due Ramdev's Patanjali firms

served FSSAI notice

to Food borne diseases every year,

WHO report

Pvt Ltd on November 19 asking them to show cause as to why action should not be taken against them for violating the provisions of the Food Safety and Standards Act...for manufacturing, relabeling and marketing Patanjali Atta noodles without obtaining valid approvals," Nadda said in a written reply to Lok Sabha.

or undercooked meat, eggs, fresh produce or dairy products contaminated by norovirus, campylobacter, non-typhoidal salmonella, and pathogenic E coli.

O

ne in every ten people across the world fall sick due to foodborne diseases every year, the World Health Organization stated in its report, titled 'Global Burden of Foodborne Diseases'.

Of the 600 million people who fall sick, 420,000 die, including 125,000 children under the age of five years.

The report considered 31 foodborne hazards caused by agents including bacteria, viruses, parasites, toxins, and chemicals.

Diarrhea diseases have been considered responsible for over 50% of the world's burden of foodborne diseases, causing 550 million illnesses and 230,000 deaths every year.

Children are at a high risk of foodborne diarrheal diseases. 220 million fall sick and 96,000 die each year.

Although children younger than five represent only 9% of the world's population, 40% get affected due to foodborne diseases.

Diarrhea is often caused by consuming raw

Some diseases caused by non-typhoidal salmonella are an increasing public health concern across the world, while other diseases such as typhoid fever, foodborne cholera, and those caused by E coli, are much more common in low-income countries.

Campylobacter has been found to be common agent in high-income countries.

Foodborne diseases most severe in low and middle-income countries. Usually the problem in these regions is preparing food with unsafe water, with poor hygiene and in inadequate conditions for food production and storage, low levels of literacy, and insufficient food safety legislation and its implementation.

H

ealth Ministry J P Nadda said, two Ayurvedic firms including yoga guru Ramdev's Patanjali Ayurved Ltd have been served notice by the government for violating food safety norms in manufacturing Atta noodles.

The Food Safety and Standards Authority of India (FSSAI) has issued a notice to M/s Patanjali Ayurved Ltd and M/s Akash Yog Health Products

Instant noodle Maggi was banned earlier this year for five months after some samples were found to have dangerous levels of monosodium glutamate and lead. However, it returned to shops after a clean chit from labs.

Senior IAS officer Pawan Kumar Aggarwal appointed

WHO director-general Dr Margaret Chan stated: "Until now, estimates of foodborne diseases were vague and imprecise. This concealed the true human costs of contaminated food. This report sets the record straight."

"Knowing which foodborne pathogens are causing the biggest problems in which parts of the world can generate targeted action by the public, governments, and the food industry."

As food safety is a shared responsibility, the findings in the report highlight the global threat posed by foodborne diseases and reinforce the need for governments, the food industry and individuals to do more to make food safe and prevent foodborne diseases, WHO added.

Ramdev had launched the product with the aim to capture the noodle market by branding his product as healthier as and more affordable than other instant noodles available to consumers.

Agrawal, a 1985 batch IAS officer of West Bengal cadre, is presently Joint Secretary in Ministry of Skill Development and Entrepreneurship. He has been appointed as CEO, Food Safety and Standards Authority of India (FSSAI) in place of Yudhvir Singh Malik, an order issued by Department of Personnel and Training said.

S

enior IAS officer Pawan Kumar Agarwal has been appointed as Chief Executive Officer of food regulator FSSAI, as part of senior level bureaucratic reshuffle effected by the government.

Beverages & Food Processing Times

Malik, who is believed to be the man behind the ban on global giant Nestlé’s popular noodle brand Maggi (which has now been removed), was shifted as Additional Secretary in Niti Aayog in September this year.

FSSAI Chairman Ashish Bahuguna was holding the additional charge of FSSAI CEO.

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Vol. 8, Issue 08 - January - 2016

Beverages & Food Processing Times

14

Vol. 8, Issue 08 - January - 2016

BEVERAGES NEWS

Bisleri International to reenter the soft drinks business early next year

New research links Concord Grape Juice to cognitive benefits in working mothers nutrients, or polyphenols, present in Concord and Niagara grape juices may aid in slowing down the body’s absorption of naturally occurring sugars in juice . This suggests that, compared with consuming a sugar-sweetened beverage, drinking 100% grape juice may result in a modestly lower glycaemic response.

that Bisleri International would invest around Rs 100 crore in rolling out the new soft drinks.

The company plans to introduce the soft drinks in lemon, spicy, mango and pina colada flavours. It is looking at manufacturing these products in at least its five locations.

B

ottled water major Bisleri International is set to re-enter the soft drinks business early next year as part of its plans to clock a turnover of over Rs 2,000 crore by 2020.

The company, which is making a comeback in soft drinks segment after over two decades, has earmarked a budget of around Rs 100 crore for the new venture.

Bisleri International Director R K Garg said that Bisleri, as a company by 2020, should be more than Rs 2,000 crore. The growth will come with expansion of business (into new areas) such as soft drinks. During 2014-15 fiscal, Bisleri had a turnover of about Rs 700 crore and is growing at a range of 20-25 per cent, he said.

Apart from packaged drinking water sold under the brand Bisleri, the company also sells natural mountain water under brand Vedica, Bisleri Soda and energy drink Urzza.

Bisleri promoter Ramesh Chauhan had sold five popular brands Thums Up, Limca, Gold Spot, Maaza and Citra to global beverage major Coca Cola in 1993. Both parties had entered into a noncompete agreement, which expired in 2008.

"There is no clash with it now", Garg said, adding

On the company's overall growth, Garg said the company expects an increase from non-metro markets. Presently, metro markets contribute around Rs 300 crore to Bisleri's total sales.

Over 90 per cent of total sales come from packaged bottled water segment and rest is contributed by others.

Besides, Bisleri is also planning to ramp up production of Vedica and expand its export market and export Vedica to some European markets.

Vedica has been exported to Japan and some Middle East countries.

On overseas expansion, he said production in Nepal would start soon and in Bangladesh it has just started.

"In UAE, talks are going on with 2-3 parties and hopefully by the end of 2016 we would start a plant there", Garg added.

Garg said the company would continue to add 1012 plants for packaged water every year to keep pace with its growth by entailing an investment of Rs 100 crore annually. These will be a combination of company-owned plants, franchise and contractors.

Bisleri has around 80 plants in India.

Tata Starbucks CEO Avani Davda resigns International, a headhunting firm, adding ideally, the term of a chief executive should be of a longer term.

T

ata Global Beverages Ltd said Avani Davda, chief executive officer of Tata Starbucks Pvt. Ltd, a joint venture of Tata Global Beverages and Starbucks Corp., has resigned to pursue opportunities outside the group.

The joint venture, which completed three years in October and operates 78 stores, has appointed Sumi Ghosh as the new chief executive officer effective 1 January. Ghosh is an eight-year Starbucks partner, and was most recently the vice-president of Starbucks Midwestern US region. He also brings three decades of consumer retail experience, including 10 years in brand management and operational leadership roles.

The change in leadership comes at a time when the venture is facing questions on performance and outlook on profitability. “In a new venture, the management comes in with lot of assumptions and performance which are not questioned in the first couple of years. In this period, it’s all hunky-dory. However, it’s only in the third year that a new venture starts looking at numbers and questioning performance,” said K. Sudarshan, regional managing partner (Asia), EMA Partners

While the research is preliminary, the work indicates that after drinking Concord grape juice, blood sugar levels may rise less dramatically than would be expected. Moderating blood sugar response from foods and beverages may translate to improved blood glucose control in support of health.

In 2014-15, Tata Starbucks reported a net loss of Rs.42 crore on revenues of Rs.171.2 crore.

Starbucks started with big stores and are now opening smaller ones as it continues to expand and look at profitability, said an industry expert who did not want to be identified, adding however deep their pockets may be, companies have to look at profitability and with the high cost of operations for a Starbucks outlet, this will take longer.

N

ew research by the University of Leeds in the UK suggests that drinking Concord grape juice daily can benefit certain aspects of memory and everyday tasks in people with stressful lifestyles – specifically working mothers.

In the study, 25 healthy, 40-50 year old working women with pre-teen children were enrolled in a randomized, double-blind, cross-over trial in which they drank Concord grape juice and a grapeflavoured, sugar-sweetened drink (the placebo) for 12 weeks each.

Over the duration of the study, the women participated in a series of tests designed to assess their cognitive performance, including a 25-minute driving simulator challenge in which they were asked to match the speed and direction of a lead vehicle. Statistically significant improvements in a memory measure (immediate spatial memory) and driving performance were both seen when the mothers drank 355ml (12 fl. ounces) of Concord grape juice daily versus when they consumed the placebo. This is the first time it has been found that the cognitive benefits associated with drinking Concord grape juice extend beyond older adults.

The paper was presented at the recent biennial International Conference on Polyphenols & Health and adds to the growing body of evidence for the role of Concord grape juice in healthy lifestyles.

In another paper presented at the conference, results of a pre-clinical study suggest that the plant

This initial research, conducted at Purdue University, further reinforces the distinction between sugar-sweetened beverages and 100% grape juice, which delivers naturally occurring fruit sugars in combination with health-promoting polyphenols.

Casey Lewis, Welch’s Dietitian and Health & Nutrition Lead, said: “The findings presented at the International Conference on Polyphenols & Health add to the nearly 20 years of science linking Concord grape juice to heart health and suggest possible novel benefits in the areas of cognitive function and blood sugar control. While more research is needed to add to this work, these new studies are promising, especially given the growing interest in the role of nutrition in cognitive wellbeing and the ongoing dialogue around beverages and health. This work builds on years of research that suggests Concord grape juice can be part of a healthy diet and is a nutritious beverage choice.”

Welch’s is one of America’s oldest juice companies with nearly 150 years’ of experience growing Concord grapes and transforming them into 100% grape juice. Native to North America and grown

by Welch’s nearly 1,000 family-farmer owners, the dark purple Concord grape is renowned for its distinctively sweet and bold flavour and is one truly American ‘superfruit’.

Under an exclusive distribution agreement with Netherlands-based Wild Juice, Concord grape juice concentrate is now available for companies across the EMEA region to use in branded and private label beverages.

For more information about the health benefits of Concords and grape juice, visit grapescience.com.

Due to supply issues Dabur sees juice sales falling up to 15%

The cafe market in India is not easy. Last year, Australian coffee cafe brand Gloria Jean’s Coffees exited India. Even Barista which was bought by Delhi-based Carnation Hospitality Pvt. Ltd last year for a reported Rs.100 crore is on the block again. If a deal goes through, this will be the fourth time Barista, which started serving coffee to Indians beginning 2000, changes hands, according to a November report by Mint.

issue beyond the company’s control and will have a near term impact on Q3 FY2015-16 performance.

There is no improvement in the eco-political situation in Nepal till date and the India-Nepal border continues to remain closed

Nonetheless, it’s a large market and incumbents continue to expand. Currently, there are approximately 100 café and bakery chain brands with an estimated 3,200 outlets spread across various cities in India, said the CDEL prospectus.

CDEL made an initial public offering of Rs.1,150 crore in October. Smaller chains like Australia’s Di Bella are also fast expanding.

Ghosh and his family will relocate from Chicago to Mumbai early next month. He will work with Davda till early February to ensure smooth transitioning, the company said in its statement.

abur has become the first major private Indian company to be hit by prevailing political tension in Nepal as the homegrown FMCG giant is expecting its juice sales to dip 1015 per cent in October-November due to disruption of supplies from its plant in the Himalayan nation.

The company said it has made alternate arrangements to overcome the hurdle.

"We had already ramped up the production of juices in Sri Lanka and Newai, Rajasthan and have also engaged with third parties to cater to our demand requirement for the month of December and going forward," Dabur said.

Dabur has lost some part of juice sale in October and November, 2015 and estimated juice sale during Q3 of FY2015-16 will be lower by 10 to 15 per cent against previous year. This is a onetime

On the overall implications of the situation, the company said depending upon the timing of opening of the border, the impact on inventory and other cost will be evaluated.

Dabur has a plant at Birgunj in Nepal, which is currently catering only the domestic market there as it is unable to send supplies across the border.

D

Beverages & Food Processing Times

15

Vol. 8, Issue 08 - January - 2016

NEWS

LPG Gas Detector for Industrial Canteen/Kitchen

A

mbetronics Engineers PvtLtd , Mumbai is an ISO 9000:2001 company serving to the nation since 1994 under brainchild of Mr. Ashish Shah provides LPG gas detection system/LPG Gas Detector.

These detectors are used for detection of the concentration of combustible gas or vapors using high quality air-sensitive component with advance technology to avoid fire, explosion, suffocation and other malignant accidents. It provides local visual LED Indication which reminds you taking prompt favorable action. Our dexterous workforce uses optimum quality materials and component, sourced from the reliable vendors to manufacture the detectors. Before offering at reasonable prices, we check the LPG Gas Detector on quality and durability parameters.

Ambetronics Engineers Pvt. Ltd manufacturing of pollution & process monitoring for LPG, either in process stream or ambient air to detect PPM level for human safety / environments safety. The gas detection instruments are available in Wall mounting, Panel mounting version with latest user friendly micro-controller technology with long life electrochemical sensors.

It accept input 4-20mA / 3wire from toxic gas transmitter. The Range, Resolution, Alarm Setpoint, Alarm control action are programable by

users. The instrument has very high accuracy is 0.25% with software linearization. Easy online field calibration by user from front keys. Programmable latch & non-latch facility for relays & L.E.D indication. Two independent set points individual with relay output, 1No. Fault relay for fail safe operation.

All three relays has 1NO / C / NC contact rated 230V / 5Amp. Non-isolated 4 to 20mA retransmission output is available for PLC, DCS & any chart recorders. Optional RS-232 / RS-485 serial port with modbus RTU protocol for online PC based data monitoring.

It is very useful for Ambient monitoring, Hotel Industries, LPG Cylinder Storate, School/College/ office Canteen, Chemical plant, Stack monitoring, Process analysis, Compressor stations, Exhaust of boilers & furnaces, Power & industrial plant, Internal combustion engines.

• Where there is a possibility of the storage of LPG Gas conduct a full risk assessment and consider the need for gas detection equipment in needed, ensure it is properly installed, maintained and serviced.

• Provide clearly marked separate storage for LPG Gas cylinders and waste materials. Train employees on safe storage, handling and use of LPG Gas. • The following factors shall be taken into consideration when deciding on the practicality

and reasonableness to use LPG: a. Adequacy of ventilation b. Extent of usage of individual rooms c. Existing fire hazard d. Suitable means of escape e. Firefighting equipment and provisions.

For further information, please contact Milton Bardeskar Manager-Business Development 08080254646

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Handy tips for safe handling of LPG Gas: • Today gas leak detection forms an integral part of a modern strategy for survival and competitiveness.

Whenever a gas explosion takes place in areas with large quantities of highly flammable materials (liquids, gases or solids), common preventive and mitigating measures might not be sufficient to avoid substantial property and business loss or serious environmental impact. Hence, one has to be extra careful while dealing with Gas Storage or Process.

• LPG storage can cause explosions in a storage facility, which can lead to substantial property damage human life and subsequent business interruption. Hence, great care should be taken in the storage, handling and use of LPG Gas to prevent Explosion.

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Beverages & Food Processing Times

Our Parlour Specialities

Rice Crispy Drinking Chocolate

16

Vol. 8, Issue 08 - January - 2016

TECH UPDATE

India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors

www.agronfoodprocessing.com

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German Technologies: Win Department of Heavy Industries (DHI), Government of India, and Fraunhofer, Germany with the latter as Technology Resource Partner.

The objective of the agreement is to support and augment the Make in India programme through increasing the innovation and technology prowess of the Indian industry. The activities include creating a road map for technological development for Indian industry, identifying and plugging technology gaps”.

Vol. 8, Issue 08, January 2016, 100/-

ear’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us. Cheers to a new year and another chance for us to get it right.

The year-end has been a quite good to the food processing industry and the New Year aspire a lot of new anticipation. This Year-end the good thing I adage was that a total of 138 food processing projects has been approved in the country which will transform the sector in the next few years. With the execution of the approved projects, the food processing sector is likely to transform in the next few years.

Even Skilling is being scaled up in 11 states and gradually it will be expanded to rest of the country and the skilled resource on this front will be absorbed in the proposed mega food parks that will not only drastically curtail the wastage of food products but enable farmers get their due. Hopefully 2016 brings good news for the farmers.

The government should focus on skill development in various sectors. In a vast country like India, swift growth in the economy can only be achieved through sufficient skilled manpower which should match the requirement of the industry.

Another surprise that came at the end of 2015 was that Danone and the Narang Group decided to go different ways. The two companies have reached a settlement ending their twin joint ventures that made and sold beverages, including flavoured water, following a souring of the relationship that saw the two filing complaints against each other.

Danone Narang Beverages, majority owned by the French company, makes beverages such as B'lue and Qua, while Narang Danone Access markets and distributes the brands.

The latter also distributes other global brands such as Twining’s Tea and Perrier sparkling water in India. Flavoured water brand B'lue is owned by Danone while mineral water brand Qua was developed by the joint entity.

As part of the settlement, Narang will retain ownership of Qua, while Danone keeps B'lue. Both companies aren't new to such breakups. Six years ago, Danone ended its deal with Britannia after litigation of nearly a decade. Austrian energy drink firm Red Bull parted ways with the Narang Group to set up its own distribution network in the country two years ago.

"Narang needed Danone's global expertise when Qua was being launched while for the French food major, with a good local distribution network, they may not need a local partner anymore."

Another thing that I am expecting to change at the end of this year is the removal of my forever confusion on the labelling of food products….’’best before’’.

Actually consumers get confused about labels printed on food items and the Food Safety and Standards Authority (FSSAI) should look into labelling issues related to 'expiry date' and 'best before'. In fact I have often wondered if ‘best before' label means it is fit for human consumption after six months.

Union Minister Ram Vilas Paswan has said labels printed on food items should carry only "expiry date", and not "best before", which has no meaning. Paswan said he would convene a meeting of his department to "work out" and implement this measure.

In the dairy sector, where Kwality is all geared up to enter the dairy market, Amul Brand of GCMMF, to cope up with the unexpected increase in milk procurement this year has requested the Centre to increase their offtake by introducing milk and milk-based products in mid-day meal scheme in government-run schools.

According to GCMMF Managing Director RS Sodhi, off take by government is the best solution for the dairy major to cope-up with the high influx of milk in recent times.

Milk powder business has no longer remained lucrative and prices of milk powder in global market have gone down almost 50 per cent, while it dipped 30 to 40 per cent in India. Thus, milk powder is not a solution in current scenario. Thus, the best solution would be more government off take. This peculiar situation is also hitting those who are dependent on cattle rearing, as they are not getting the expected prices.

The whole of the 2015 was shadowed with Maggi and its controversy but I think New Year will bring good news in the aftermath of the Maggi crisis. Nestle India is aggressively trying to increase the consumption of its flagship instant noodles brand eyeing double digit growth.

It is also sharpening focus on digital media and pushing other products so that all categories contribute almost equally to the company's overall revenue.

The company is now simultaneously pushing growth in other categories such as milk products and chocolates, along with the relaunch of Maggi.

Nestle is engaging actively in social media, and is building a strong digital presence and is building a strong digital presence to strengthen the Maggi brand. Along with TV and print campaigns the company is engaging with customers via Facebook and Twitter.

The company is leveraging all the sales channels and had tied up with e-commerce player Snapdeal to push online pre-orders, which saw an offtake of 60,000units in the first five minutes.

2015 ended with a lot of happening in the food industry, like Vadilal ice cream is losing its cream due to family conflicts while due Christmas and new year the poultry Industry had bells Jingling all the way as the prices of broilers increased, The cake industry touching new height as it grow to 2K. The coco- cola plant in UP is facing problems as NGT sends notices. Fssai gets a new CEO as Pawan Kumar Agrawal and BJP MLA Jetha Bharwad becomes Amul's first vice-chairman.

Lots have happened, lots will happen in 2016……….A happy new year to all my readers and hope this new year we are able to give much better news and views.

G

ermany has been on the forefront for making good quality machinery ever since industrial revolution taken place in Europe. Export to India has also been increasing year on year due to ever growing demand. India is also importing food processing & packaging machinery from Germany and some of the most popular brands in this sector belongs to Germany.

According to Rajesh Nath, Managing Director of VDMA in India, “The trade volume between India and Germany during the first half of 2015 grew a healthy 13.5 per cent over the same period last year to reach a volume of nearly €8.8 billion. The significant increase in bi-lateral trade was mainly on account of the Indian imports from Germany which appreciated 18 per cent (€4.9 billion) during first half of this year, after registering a negative growth of 13.7 per cent during January-June 2014”.

German companies have a unique expertise which India must tap into and the opportunity for growth has just begun. The government would like German companies to partner with them and extended an invitation to German companies to come and set up manufacturing facilities in India. We would welcome the most awaited Free Trade Agreement (FTA) to boost Indo-German collaborations and greater business between Indian customers and VDMA members. The EU and India hope to increase their trade in both goods and services and investment through the FTA negotiations launched in 2007, he informed.

Appetite for better and upgraded machinery is on increase in Indian food processing industry.

Consumption patter and centralised food processing activities have ignited the demand in many folds. Nath says “Sectors like food processing and packaging are growing steadily in India”.

Recently visit of German Chancellor Angela Merkel to India has further strengthened the IndoGerman cooperation in machinery sector. Nath says, “During her recent visit to India, held talks with Prime Minister Narendra Modi on stepping up bilateral cooperation. India and Germany have signed an agreement to set up a separate body to fast-track investments by German companies in the country and weed out the obstacles faced by them in conducting business. The agreement, signed between the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce, and Ministry of Economic Affairs and Energy (Germany), will set up a separate body which will be functional by March 2016. The body will fast-track investments by German companies into India by regularly screening problems faced by them”.

Nath also informed, “At a separate venue, a framework MoU was signed between the

Theegarten - Pactec has come into existence as a result of the merger between Rose-Theegarten, Cologne and Pactec, Dresden in 1994. The competence of THEEGARTEN-PACTEC lies in the design and manufacture of individual machines as well as complex systems for the packaging of high-boiled sweets, toffees, jelly, chewy candies, chewing gum, chocolates, cube sugar, soup tablets, pastries and also nonfood articles (such as dishwasher and detergent tablets) in various wrapping styles and for different speeds. Interview Markus Rustler, President & CEO.

Beverages & Food Processing Times

Following the EU-India Summit in February 2012, negotiations entered an intense phase.

Important issues include market access for goods, the overall ambition of the services package and achieving a meaningful chapter on government procurement. Even during the visit of Narendra Modi to Germany at the Hannaover Messe in April 2015, both he and the German Chancellor spoke in favour of restarting the discussion on FTA, said Nath.

On the other hand, Indian exports which had more or less remained at the same level during January-June 2014, posted a growth of 8.3 per cent during the same period this year. Indian exports to Germany during January-June 2015 amounted to nearly €3.9 billion, Nath added.

Recently VDMA oragnised a one day seminar in Mumbai in which 13 leading food processing & Packaging machinery manufacturers participated, we had taken interviews of some of the participants for understanding their views about Indian food processing sector and their offering to the same.

What are the services-technologies you are providing to the Industry?

THEEGARTEN-PACKTEC- Specializes in the design and manufacturing of packaging equipment for small pieced confectionery items. The company combines more than 20 different types of packaging styles with a broad performance spectrum. Apart from individual machines, the company offers complete packaging lines as a turnkey partner. The following products can be packed or wrapped: hard candies, toffees, chewy sweets, chewing gums, chocolate products, and various other food and non-food products.

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Vol. 8, Issue 08 - January - 2016

TECH UPDATE

win situation for Indian & German Companies the clear demand for flexible high-performance equipment.

CHOCOTECH- India is a “sweet” country where people appreciate eating sweets and confectionaries. This is for traditional sweets as well as for classical confectionaries like Hard Candies and Toffees.

The amount of use and quality in production and products is increasing year by year and consequently also the requirements in processing.

India has already become a future market.

OKA is providing solutions for confectionery and bakery companies. OKA’s focus in on equipment for the shaping of the products, namely Extruders, Depositors, Cutters, Rotary Molders and other accessories such as rotary moulds.

CHOCOTECH has 24h after sales service which provides mechanical and software engineering as well as technological process engineering. We can provide SIS systems for online maintenance of the equipment. With our agency we also have a skilled service team located in India to provide help and guidance by using our equipments and processes.

How do you see India for the sale of you machinery, technologies?

THEEGARTEN-PACKTEC-Of course, a market with over one billion potential customers of confectionery products wrapped on our equipment is definitely an important market for us. Accompanied with the combination of rising disposable incomes, changing lifestyles, a young population’s growing penchant for indulgence and the traditional high consumption of confectionery making India to a growing market, and thus also

for the process and wrapping equipment.

OKA-India is a fast changing market. We do observe a change from standard commodity products such a hard biscuits to higher value added products e.g. Chocolate Chip Cookies. These products were typically imported in the past and are now more and more manufactured locally with

CHOCOTECH offers modern and innovative solutions for caramel, fondant, foam, jelly, hard candy, fruit snacks, binders, birds milk, brittle and Halwa production. 1920 the company was founded by Otto Lauenstein in Wernigerode (Eastern Germany). 1992 Helmut Sollich becomes the new owner of CHOCOTECH. Interview Oliver Ludwig, Area Sales Manager Asia

Indian food processing industry especially bakery, confectionery, dairy industries are growing with the double digit growth rate. Do you feel that it needs to grow with the right technologies for sustainable growth rate YOY? THEEGARTEN-PACKTEC-India as well as many other world markets sees an increase in labor costs. Combined with increasing raw material costs as well as rising production costs highly efficient production resources are crucial for a long term success. Hence the investment in high technology pays off at the long side.

OKA-The fast and impressive growth rate of the industry in the combination with the size of the country and the population a demand for efficient German technology is obvious.

CHOCOTECH- Yes! Though India is a big country with one of the biggest consumer basis but still sizes of the processing units are not increasing the way we see in Europe or US due to various reasons.

How do you fit yourself in this scenario?

THEEGARTEN-PACKTEC-Our opinion is different. We see indeed a constant investment in new equipment in India, especially by the multinationals. Already today, we have good business relationship to manufactures of confectioneries in India, but of course see a lot more potential for the future.

OKA-Due to logistical reasons we see a clear difference between a European and US scenario with individual large manufacturing sites which cater for a cross-border supply compared to the Indian approach of multiple smaller sized productions sites around various locations in the country. This means at the end a higher demand for standard sized machines compared to a lower demand of high-performance equipment. For a machine builder it’s more attractive scenario which makes the market especially interesting.

CHOCOTECH- At Chocotech we respect tradition and combine it with modern technology.

How important is automation for food processing industry with lesser man power?

THEEGARTEN-PACKTEC-Asal ready mentioned above, we think that the increasing demand of confectionery products in India requires investment in new equipment with high level of automation. This results in a more efficient and more hygienic production of confectioneries.

OKA-In the food processing we will continue to see lower demand of man power in general on one side on the other side we see a higher demand for well educated and trained machine operators.

CHOCOTECH-It guarantees a constant product

quality and decreases the number of mistakes.

Quality of products also becomes more and more into focus of the final consumer and so on an automated process is required.

When we use hi-tech machinery we also need to upgrade the same quite often, what kind of after sales network you have globally and especially for India?

THEEGARTENPACKTEC-We are producing high-tech machinery, but very simple to operate. Once, the equipment is installed, it is no rocket science to keep them running. The staff of our customers can do regular maintenance and cleaning very easily. All over the world, Theegarten-Pactec machines are running for decades and wrapping confectioneries 24/7.

Our equipment doesn’t need regular upgrades, involving additional cost for our customers.

Nevertheless, we offer the retrofit of old Pactec (Nagema) and Rose-Theegarten machines to our customers. This applies to machines already in operation for 40 and more years. Based on an evaluation of the machines by our engineers, it might be a good alternative for a customer to invest an attractive mechanical and electrical upgrade package instead of a new machine.

Our Indian partner ACG-PAM is responsible for our local service. However, there is also a separate Theegarten Division that has its own sales office and takes care of all local issues. In addition, our engineers from Germany are used to be on site within 24 or 48 hours (depending on the availability of flights) to solve major problems.

OKA-Hi-Tech is not necessarily linked to frequent upgrades nevertheless OKA has with Vedic Systems a strong local distribution partner which can offer all services locally through well trained staff. The OKA equipment is equipped with remote maintenance features which allow software changes or updates without the presence of an engineer on site. The combination of a local partner with remote access possibilities caters to most of the typical upgrade questions. If the presence of OKA service staff on site is necessary, we can draw back on network of globally available specialists.

CHOCOTECH- If you have to upgrade your equipments then you know you have made everything well and right because an upgrade is only necessary if the business is giving you the right response.

OKA-Spezialmaschinenfabrik is a traditional German machine manufacturer with more than 100 years of history in designing and building machines for the bakery and confectionery industry.

OKA is specialized in depositing, extruding, moulding and decorating of cookies, chocolate products like pralines, marshmallows and marzipan. The company is located in Darmstadt near Frankfurt am Main.

Interview Matthias Drees, Managing Partner

Beverages & Food Processing Times

German machines are mostly preferred among Indian food processors, what are the reasons behind this constant faith?

THEEGARTEN-PACKTEC manufactures machines that are positioned in the absolute high-performance range. The quality of these machines guarantees they stay in operation for a long time - and long service life is a key factor.

Quality has its price, of course. But the initial investment is relative when you break it down over the lifetime of a machine. If you also factor in the high output volume (products per minute) our machines deliver, it is instantly apparent that an investment in Theegarten-Pactec equipment is very worthwhile.

Another very important point is that we keep our promises. Our customers will be glad to confirm that this is not just an empty phrase.

OKA- German machine building is globally still highly accepted and “Made in Germany”

a synonym for high-performance, heavy duty equipment. This high level of expectation is a clear demand.

CHOCOTECH- Best quality, long life, sustainable, innovative, reliability of the suppliers and guarantee of an excellent final product for the consumer are the reasons.

VDMA has also been actively participating in the promotion activities of German machines what do you say for them?

THEEGARTEN-PACKTEC- We are member of the VDMA and working together whit them for decades. As a company with more than 90% export ratio, the marketing activities abroad of the VDMA are very important for us. We regularly attend in symposiums, delegation trips, trade show participations and experience exchanges organized by the VDMA. Furthermore, we also benefit from the business information from all over the world provided by them. They are doing a great job in helping us (and the other members) to promote our equipment all over the world.

OKA- VDMA offers an excellent support platform in Germany as well as globally. VDMA is a promoter of German machines in general and we appreciate the excellent support also in the Indian market.

CHOCOTECH- We say thanks to them!

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Vol. 8, Issue 08 - January - 2016

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Beverages & Food Processing Times

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Vol. 8, Issue 08 - January - 2016

FOOD PROCESSING NEWS

Food Processing companies Dabur bring Chyawanprash help people of Chennai with sugar-free variant

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government at Nehru Indoor Stadium in Chennai.

The list of seven such companies included Nestle India on the top with supplies of 10 MT of noodles, 5000 litres of tetra packed milk and 50000 pouches of p with supplies of 10 MT of noodles, 5000 litres of tetra packed milk and 50000 pouches of coffee.

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fter remaining at loggerheads with the government over ban on Maggi noodles, Nestle India was today listed among the top suppliers of food and beverage products for people affected by heavy rains in Chennai.

"Further additional quantity approximately 25-30 MT of noodles, about 8 MT Munch and Sunrise Biscuits 800 kg is also being supplied," the Ministry statement said.

Among other products, Nestle has also supplied the 'two-minute' Maggi noodles to the Tamil Nadu government towards the relief operations.

Nestlé’s Maggi noodles were banned by the central food regulator FSSAI and various state food departments over alleged presence of lead and taste enhancer MSG beyond permissible limits, but the ban was later lifted after orders from the courts. The product was recently relaunched.

In a statement, Minister for Food Processing Industries, Harsimrat Kaur Badal said that the industry should ensure that there is no shortage of milk, packaged food articles and bottled water for the people of Chennai.

Besides, ITC has supplied 6 truckloads consisting of 3163 boxes of biscuits. MTR has supplied about 14128 ready-to-eat food packets and another quantity of 35000 ready-to-eat food packets will be delivered shortly.

"It is time to stand up and make exemplary contribution for the flood affected people of Chennai who have been patronizing food brands and products manufactured by the industry," she said.

Britannia has supplied 3 truckload of 345 boxes of biscuits today and remaining 2 truckloads of food items. They have also been requested to supply additional quantity of milk produce and some bread.

The Ministry of Food Processing Industries said it is coordinating with all food processing companies for supply of packaged milk, packaged food and bottled water and also listed out names of eight companies who have made available supplies of food and beverage products to the Tamil Nadu

Coca Cola India has supplied ready with 50000 one liter water bottles, while PepsiCo has supplied 12000 one liter water bottles and arranging transport to supply today.

Parle is arranging to send 3 truckload of Parle biscuits, it added.

Nestlé India restarts Maggi noodles production at last of its five facilities The production resumption at the Talhiwal facility is considered to be a step towards bringing production volume back to the pre-ban level, though it may take a few months to achieve that, reported Business Standard, citing experts.

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estle India has recommenced production of Maggi instant noodles at the last of its five facilities at Tahliwal, in the northern state of Himachal Pradesh.

This move is expected to increase the supply of the product, especially as the Tahliwal plant is one of the two major noodle manufacturing hubs.

Last week, Nestle India recommenced production of Maggi noodles at its fourth facility, located at Pantnagar in the northern state of Uttarakhand.

Nestle has been resuming noodle production in a phased manner since 26 October.

Maggi noodles are now produced at its facilities in Nanjangud (Karnataka), Bicholim (Goa), Moga (Punjab), Pantnagar (Uttarakhand), and Tahliwal.

MCG major Dabur India has launched a sugar-free version of its popular Ayurvedic product Chyawanprash to reach out to increasingly health conscious consumers.

"This marks a first for Dabur and for the healthcare industry in India...

Dabur Ratanprash in a sugar-free form that makes it more

appealing to the health-conscious consumers," Ajay Parihar, Dabur India Category Head-Health Supplements said.

Dabur has roped in Bollywood actor Anil Kapoor as the brand ambassador for 'Dabur Ratnaprash SugarFree'.

"Enriched with the power of potent Ayurvedic ingredients such as moti, kesar, musali, Dabur Ratnaprash SugarFree has been specially developed for those who feel the need help to rebuild strength, stamina, vigour, vitality and energy that's drained by the stress of day-to-day living," Dabur said in a statement.

New sugar factory to come up at Kabirdham in Chhattisgarh addressing farmers on the occasion.

"Over 10,000 farmers in the region are stock-holders in this factory and thus they are its real owners," he said.

Singh also distributed certificates among stock-holder farmers. He further called upon the farmers to take interest in sugarcane production apart from paddy cultivation.

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new co-operative sugar factory with sugarcane crushing capacity of 2,500 metric tonnes will come up in Chhattisgarh's Kabirdham district, with a vision to promote agro-based industries in the state.

Notably, this is the fourth sugar factory of the state and second in Kabirdham district, based on cooperative model.

The two other sugar factories are already functioning at Kerta of Surajpur district and Karkabhat of Balod.

Chief Minister Raman Singh laid the foundation stone of the factory, to be constructed at Biseshar village of Pandaria block at a cost of Rs 163.12 crore. The factory premises would be spread in an area measuring over 80 hectares.

This factory, which has been named after India's 'Iron man' Sardar Vallabbhai Patel, will benefit about 20,000 farmers living in Pandaria region of Kabirdham, besides Mungeli and Bemetara districts, he said.

"The state government is making every possible effort to promote the agriculture-based industries in the state in a bid to improve the economic condition of the farmers," the CM said while

Moreover, the sugar factory will also produce about 14 MW of power through biomass produced by the factory, which is sufficient enough to power about 20,000 houses.

Total of 138 Food processing projects approved in India

Only one out of nine varieties is being currently manufactured. Before the controversy in May, the firm produced around 20,000t of Maggi noodles.

food parks that will not only drastically curtail the wastage of food products but enable farmers get their due", said the Minister of State for Food Processing Industries.

Meanwhile, the company began a promotional campaign on social media channels and traditional media.

PHD Chamber President Mahesh Gupta emphasised that to realise the maximum potential in food processing sector, skill development is vital.

"The seed of doubt that has been planted in the minds of consumers in India has to be eradicated, and we will be utilising traditional, digital and social media to connect with them," said Nestle India chairman and managing director Suresh Narayanan Within two weeks of the relaunch, the company sold 45 million packs.

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ccording to Union Minister Sadhvi Niranjan Jyoti, a total of 138 food processing projects have been approved in the country which will transform the sector in the next few years.

With the execution of the approved projects, the sector is likely to transform in the next few years, Jyoti said at a conference on food processing organized by industry body PHD Chamber.

Skilling is being scaled up in 11 states and gradually it will be expanded to rest of the country, she said.

The skilled resource on this front will be absorbed in the proposed mega

Beverages & Food Processing Times

"The government should focus on skill development in various sectors. In a vast country like India, swift growth in the economy can only be achieved through sufficient skilled manpower which should match the requirement of the industry", Gupta added.

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Vol. 8, Issue 08 - January - 2016

Beverages & Food Processing Times

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Vol. 8, Issue 08 - January - 2016

CORPORATE NEWS

Adinath Agro raises series A

investment from Carpediem Capital

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dinath Agro Processed Foods Pvt. Ltd, a regional sauces company with brands like Winn & Surabhi has raised series A investment from private equity fund Carpediem Capital for a significant minority stake. Even though the quantum of funds invested were not disclosed, as per industry sources, it is estimated to be around $5 million.

Infina Finance Pvt. Ltd, an associate of Kotak Mahindra Bank, has also co-invested alongside Carpediem Capital. Adinath is an Rs 50 crore players based out of Pune. Being within the Top 3 brands in Western India, there lies immense potential to transform Adinath into being one of the leading players across select regional geographies within India.

Investment Bank Candle Partners was the exclusive financial advisor to Adinath Agro on the deal.

The company is a regional leader in the area of

The ketchups and sauces industry in India is estimated to be in the range of Rs. 1,200-1,400 crores and is growing in double digits. Some of the other large brands that operate in this segment include Kissan, Maggi, Cremica, Ching's Secret and Heinz amongst others.

Carpediem Capital - started by four ex-colleagues at India Equity Parters — Arvind Nair, Hithendra Ramachandran, Vishal Jindal and Abhishek Sharman -- is an India-focused private equity fund that focuses on small and medium size businesses.

Focus sectors include consumer products and services, healthcare, consumer finance services, logistics, managed services and education. Its investment sweet spot is Rs 15-50 crore while bringing in co-investments for larger deals. Earlier this year, they had also invested an undisclosed sum in Gurgaon based Thea Kitchen, owner of the niche QSR chain Biryani Blues.

loss and waste to enhance our ability to sustainably eliminate global hunger and under nutrition,” said IFPRI director-general Shenggen Fan. “This new platform is a critical step in this direction.”

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As per FAO estimates, over 40 per cent of root crops, fruits and vegetables are lost or wasted, along with 35 per cent of fish, 30 per cent of cereals and 20 per cent of oilseeds, meat, and dairy products. FAO studies have also shown that food wastage is responsible for the release of billions of tonne of greenhouse gases into the atmosphere, consuming some 250 km3 of water and 1.4 billion hectare of land each year.

“The G20 Platform will enhance our capacity to accurately measure food loss and waste, both in the G20 countries and in low-income countries,” said FAO director-general José Graziano da Silva.

“It will bring new expertise and knowledge for improving metrics. It will also respond to countries’ need for knowledge and good practices.”

“We must coordinate global efforts to reduce food

restore fast growth

sauces & has built a formidable reputation in Maharashtra. It is promoted by two brothers, Nitin and Rajesh Gandhi, who have over 25 years of experience in the food processing industry. The company is a pioneering leader in the niche category of Jain sauces, which is seeing double digit growth due to increased penetration in tier II and tier III markets. "We believe this partnership will help accelerate our growth trajectory as we penetrate further into our existing markets and expand into new markets," said Rajesh Gandhi, director, Adinath Agro.

FAO, IFPRI, CGIAR launch global initiative to contain Food waste

he Food and Agriculture Organization of the United Nations (FAO), the International Food Policy Research Institute (IFPRI) and the CGIAR research program on Policies, Institutions, and Markets (PIM) has launched a new initiative to enhance global cooperation on measuring and reducing food loss and waste.

This follows a request by agriculture ministers from several countries at a G20 summit in Turkey earlier in the year.

Nestle India aims to

Currently, one-third of global food production – enough food to feed two billion people for a year – is lost or wasted annually. The G20 agriculture ministers noted the significant food loss and waste throughout food value chains as “a global problem of enormous economic, environmental and societal significance.”

According to an official statement, the initiative will enable the following: 1. Lead efforts to improve the measurement of food loss and waste 2. Build capacity to reduce food loss and waste in G20 countries as well as in lower-income nations.

This capacity building effort includes “SouthSouth” knowledge transfers 3. Provide evidence-based advocacy on the scope, causes and costs of food loss and waste 4. Monitor global developments on food loss and waste 5. Provide multi-agency advisory and technical assistance for work on food loss and waste at the request of governments 6. Build on and complement existing mechanisms, such as the Global Community of Practice on Food Loss Reduction, run jointly out of Rome

by FAO, the International Fund for Agricultural Development and the World Food Programme as well as the World Resources Institute’s Food Loss and Waste Protocol.

promotions in categories such as chocolates.

Nestlé India had, in the wake of the Maggi crisis, reported its first quarterly loss in 17 years in the June quarter, plus a 60 per cent drop in net profit for the September quarter. The December and March quarters are not expected to be very strong either, said analysts, as the company slowly gets backs to normalcy after the five-month ban and recall of Maggi.

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estlé India, this country’s largest food products company by revenue, is keen to restore double-digit net sales growth.

And, hopes to step up innovation and consider getting into new categories, Suresh Narayanan, chairman and managing director, said in a recent meeting with analysts.

Narayanan formally took charge of Nestlé India on August 1. He said he was keen to eliminate all issues pertaining to the Maggi instant noodles controversy. He was happy, he said, at the way the brand’s relaunch had taken place.

The company has recommended production of Maggi at its largest manufacturing unit in the country, Pantnagar in Uttarakhand, giving a fillip to the relaunch. This was a key hurdle the company was looking to get past, after clearing the courtmandated safety tests by October 16. Pantnagar becomes the fourth factory to resume production of Maggi, after Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa).

Narayanan reiterated the company would take “pro-active pricing action” to gain market share.

Nestlé recently cut the price of its tetra pack milk under the Nestlé A+ brand by 20 per cent, bringing it at par with rivals such as Amul. The price of Nestlé A+ Dahi (curds) was reduced by 16.7 per cent, analysts said.

The company, said Narayanan, would remain focused on e-commerce following its exclusive, limited edition sale on Snapdeal of the relaunched Maggi, as well as pushing price-offs and sales

Court battle continues Nestlé opposed the central government’s plea to test more samples, during a hearing at the National Consumer Disputes Redressal Commission (NCDRC). Nestlé is fighting the government to set aside a class action suit initiated by the latter, one that seeks Rs 640 crore in damages, on charges of misleading consumers on Maggi. The Centre urged NCDRC to order testing of about 30 more samples of the instant noodles before concluding the case.

A decision on this plea was deferred by the bench of V K Jain, the forum’s president, and B C Gupta.

They rejected the food major’s argument over their jurisdiction to hear the suit. On more testing, Nestlé counsel Iqbal Chagla’s made arguments on the question of accreditation of the laboratories where the samples were proposed to be sent.

New video a hit Nestlé India, also nutrition partner for the Delhi Half Marathon, has issued a video featuring 104-year-old and Indian-origin British national Fauja Singh, termed the oldest marathon runner in the world. The film, created by digital agency Sapient Nitro, has had nearly half a million impressions on social media since its release two days earlier, said K V Sridhar, the agency’s chief creative officer.

Narayanan of Nestlé had earlier said the company would use every marketing lever to make itself visible. Observers say this is being put into practise. In recent months, the company has steadily released videos, either speaking of Maggi or highlighting its merits. The latest video links Nestlé’s centenary celebrations with Singh and how the two have continued to get going even after having touched the three-digit mark in age.

Proceedings on Maggi before NCDRC stayed by Supreme Court

N

estle India said that proceedings before the NCDRC have been stayed by the Supreme Court. An appeal filed by Nestle against the NCDRC orders dated last week had come up for hearing before Supreme Court, and the court has directed that proceedings before the NCDRC are stayed.

"As against the directions of NCDRC to send the samples for testing to the export inspection agency, Nestle has consented to send the same samples to a NABL accredited government referral laboratory," Nestle said in a statement.

Reports of 13 samples have already been sent to CFTRI Mysore and the additional 16 which are being sent to CFTRI are to be forwarded to the

Beverages & Food Processing Times

Supreme Court instead of NCDRC, the foods maker added.

The Supreme Court sought the Centre's response against an order for testing of 16 more samples of Maggi noodles in connection with the National Consumer Disputes Redressal Commission (NCDRC)'s Rs 640 crore suit against the company for alleged unfair trade practices.

Nestle, on its part, has challenged the NCDRC order, directing further testing of 16 more samples.

The government had petitioned that Nestle India had 'indulged in unfair trade practices by false labelling of Maggi noodles.

22

Vol. 8, Issue 08 - January - 2016

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23

Vol. 8, Issue 08 - January - 2016

NEWS

PepsiCo to launch fastest growing snacks Doritos next week

P

epsiCo will bring in its billion dollar-plus snacks foods brand Doritos to Indian stores starting next week, its fastest growing snacking brands worldwide, a top official said.

The move to bring in Doritos, a premium, highmargin brand, hinges on PepsiCo's strategy to premiumise its portfolio. "Bringing in Doritos is in continuation of our journey towards premiumisation. There is a definite market for such products now," PepsiCo VP, snacks, Partho Chakrabarti told. He cited recent launches including chips brand Lays Maxx and higher end variants of Tropicana juices and salty snack Kurkure as examples of highmargin products that he said had received positive consumer feeback.

The triangle-shaped Doritos, the New Yorkbased firm's third largest snack brand after Lays and Cheetos, will be imported presently. PepsiCo expects to start domestic production of the nachos chips brand through the course of year.

Doritos' launch comes at a time when beverage sales have slowed down to low single digits on account of slowdown in impulse spends and unseasonal rains. "Growth within snacks is higher than beverages," Chakrabarti said, which he attributed to the snacks category selling at lower price points of Rs 2, Rs 3 and Rs 5 fuelling volumes and a wider distribution footprint.

PepsiCo's beverage portfolio includes flagship cola Pepsi, lemon-based Mountain Dew, 7 Up and Nimbooz, Tropicana juices and Aquafina packaged water.

In India, Doritos will be PepsiCo's third master brand within snacks after Lays and Kurkure and the firm said it is bringing in a mega brand to its snacks portfolio after a gap of at least well over a decade.

PepsiCo, though still leading the Rs 8,700 crore domestic salty snacks market, has been facing intense competition from scores of regional players including Balaji Wafers and Haldiram's,

and has been conceding market share to these brands.

"There are a significant number of players in snacks but the category is moving fast enough for us to continue growing," Chakrabarti said. While the Nestle episode which ended in Maggi noodles being banned for five months between June-October this year impacted sales of all packaged foods, Chakrabarti said category sales had not slowed down significantly.

Haldiram’s Snacks and ‘Prem Ratan Dhan Payo’ Link-up a Win-win for Both Haldiram’s in-film marketing with Salman Khan carrying goodies of snacks and sweets from the market giant for his muse (note the song “Aaj Unnse Milna Hai Hamein”) was a well-known aspect of the Diwali hit “Prem Ratan Dhan Payo.”

Besides this in-film presence, the company also came up with another innovative way to promote the film and endorse themselves through this potential (and now definite) blockbuster.

In a first, the logo of “Prem Ratan Dhan Payo” along with a unique contest was printed on more than 15 million packets of Haldiram’s snacks and distributed across India. A hundred lucky winners won the special Haldiram’s “Prem Ratan Dhan Payo” gift hampers, while one lucky fan of Khan won an opportunity to attend a film event with the superstar.

This integration was the brainchild of marketing consultant Neeta Shah of Pulp Fiction Entertainment. Said Shah, “Haldiram’s is a family brand trusted for its quality and wide appeal, just like Rajshri Productions’ films are known for their family values; hence, associating Haldiram’s with the film was a perfect integration, as it was seamlessly and interestingly woven into the script.

It was important to leverage the brand’s mandates and objectives with the script so that those particular scenes do not look forced. Just in-film presence is not enough. It was also important to extend it into out of the film associations as well through innovative out-of-the-box strategies.”

SEA concerned over

international policy impact

on domestic Edible Oil industry

T

he edible oil industry has raised concern about international policies that may affect India's domestic oil sector. In a release issued by the Solvent Extractors' Association of India (SEA), the industry has pointed out how policy changes in Argentina, Indonesia and Malaysia can leave an impact on edible oil prices.

The newly elected president of Argentina Mr Mauricio Macri has eliminated most of the farm export taxes including on soybean and soybean oil. These measures will have a positive impact on their export and its impact is seen in the fall in prices of soybean and soybean oil in the international market, SEA said.

Likewise in the Indonesian government has decided to implement its biodiesel blending mandates to blend 15% biodiesel into gasoil or B-15 for its domestic transport and industrial sector. Indonesian government plans to raise its biodiesel blending mandated to B-20 in 2016 to support the entire Indonesian palm industry.

Indonesian government aims of the recently created subsidy from the fund was to encourage domestic production and use of palm oil-based biodiesel to soak up excess crude palm oil (CPO)

National Human Rights Commission notice to

H

ealth Minister J P Nadda said, the National Human Rights Commission has issued notice to food regulator FSSAI over reports of pesticides being found in food items more than the prescribed limit.

"NHRC has taken suo-moto cognizance of a news report published in the Times of India on October 5 titled 'Pesticidessoaked food samples double in 6 years'.

In its notice, NHRC directed Food Safety and Standards Authority of India (FSSAI) to submit

its within eight weeks from the date of receipt of notice.

Maximum Residual Levels of pesticides in fruits and vegetables and other food products have been fixed under the Food Safety and Standards (Contamination, Toxins and Residues) Regulation, 2011.

"Presence of pesticides residues beyond these levels in food products including food, vegetables and meat is treated as a violation of the said regulations, which attracts penal action under the Act," he said

Indonesia and Malaysia, the major palm oil producing countries have set up a Council with a common objective to maintain higher price of palm products in the international market and reduce competition amongst them.

India imported nearly 9.5 million tonnes of palm products from Indonesia & Malaysia during 201415, nearly two-third of India's total imports of 14.4 million tonnes. India is heavily dependent on Indonesia & Malaysia for edible oil requirement and spending over Rs.65, 000 crores (approx.

US$ 10 bn) per annum. Indonesia & Malaysia has inverted duty structure in place for exports of CPO and RBD Palmolein with high duty on CPO (raw material) and lesser duty on RBD Palmolein (finished product) which has already affected the domestic refining sector, In view of this new development, Indian refiners and India may be at a further disadvantage due to their combined selling power. This may have serious implication for India in the long run and to offset its impact to minimal; suitable policy changes be initiated by the government, SEA said in the release.

PepsiCo to bring its billion dollar-plus snacks - Doritos to Indian stores

The film has entered the domestic Rs. 200-crore plus club and has crossed the 300-crore mark worldwide within just 18 days. So it is a win-win situation, as the food giant’s turnover in 2014 was a staggering Rs. 3,500 crore, higher than the combined revenue of McDonald’s and Domino’s in India, a huge feat for a company that started as a small shop at Bikaner in 1937 and forayed into Delhi only in 1982.

FSSAI over reports on pesticides in food items

stocks in the country which will eventually create enough demand and raise palm oil prices. During the recent GAPKI Conference at Bali, it was announced that in 2016, Indonesian government plans to produce about 3.0 million tonnes of biodiesel by providing subsidy of US$300 per tonne of biodiesel produce so as to reduce the ava availability of CPO thereby intend to strengthen the price of CPO in the international market. The crude oil prices are falling in the international market as such Indonesia is unlikely to achieve the big target announced by their ministry.

P

epsiCo will bring in its billion dollar-plus snacks foods brand Doritos to Indian stores starting next week, its fastest growing snacking brands worldwide.

The move to bring in Doritos, a premium, highmargin brand, hinges on PepsiCo's strategy to premiumise its portfolio. PepsiCo VP, snacks, Partho Chakrabarti said that recent launches including chips brand Lays Maxx and higher end variants of Tropicana juices and salty snack Kurkure as examples of high margin products that he said had received positive consumer feedback.

The triangle-shaped Doritos, the New Yorkbased firm's third largest snack brand after Lays and Cheetos, will be imported presently. PepsiCo expects to start domestic production of the nachos chips brand through the course of year.

Beverages & Food Processing Times

Doritos' launch comes at a time when beverage sales have slowed down to low single digits on account of slowdown in impulse spends and unseasonal rains. "Growth within snacks is higher than beverages," Chakrabarti said, which he attributed to the snacks category selling at lower price points of Rs 2, Rs 3 and Rs 5 fuelling volumes and a wider distribution footprint.

PepsiCo's beverage portfolio includes flagship cola Pepsi, lemon-based Mountain Dew, 7 Up and Nimbooz, Tropicana juices and Aquafina packaged water.

In India, Doritos will be PepsiCo's third master brand within snacks after Lays and Kurkure and the firm said it is bringing in a mega brand to its snacks portfolio after a gap of at least well over a decade.

PepsiCo, though still leading the Rs 8,700 crore domestic salty snacks market, has been facing intense competition from scores of regional players including Balaji Wafers and Haldiram's, and has been conceding market share to these brands.

24

Vol. 8, Issue 08 - January - 2016

NEWS

Pulses to adopt Milk innovation model

T

he latest hit on pulses price hike has driven the hot conversation. In the country like India, each morning, a common man prays not to wake up with news affecting the normal and basic necessities of life.

Petroleum and diesel subsequently price hike had always occupied the concern for common man.

The government thus thinking of ways to reach the products to people in affordable rates.

Decades after it began transforming milk production and affordability through an innovative model based on the Amul pattern, National Diary Development Board (NDDB) is set to do likewise on pulses.

It already markets pulses through its Safal brand and plans to widen the presence through more exclusive tie-ups with farmer-producer organisation (FPOs).

After it perfects a procurement mechanism on a national scale, NDDB plans to get into extension services – providing inputs to farmers and handholding to improve productivity.

“It is the same (as the) milk model, where we first entered into marketing and then started providing services like vaccination, fodder, etc,” ,T Nandakumar, chairman of NDDB, said.

He said as in milk, the bulk of the return it will

get from selling the Safal brand of pulses would be shared with growers. Arvind Subramanian, the government’s chief economic advisor, had only a few days earlier called for replicating the Amul model in pulses, to tackle the growing demand and supply gap.

The bedrock was the village producers’ co-operatives, which procured milk and provided inputs and services, making modern management and technology available to members. The aims were to raise production, augment rural incomes and ensure a fair price to consumers.

It is the same three pillars on which NDDB now wants to base its pulses initiative but through the FPOs. “We plan to start with purchase of 20-30 tonnes directly from farmers under the same model. Pulses will be unpolished but of superior quality, grown without the use of pesticide,” said Nandakumar. He said the FPOs registered with Small Farmers Agribusiness Consortium would be targeted first.

“We are planning to approach the Centre for giving us relaxation from the procurement and storage norms recently issued,” Nandakumar said.

The Board also plans to set up a processing centre in Jharkhand for freezing peas and processing of tomatoes, with an investment of slightly over Rs 70 crore. The centre would have a capacity of 100,000 tonnes and directly benefit around 50,000 farmers. The Board has also started working with the government of Uttarakhand to revive its milk cooperatives.

This would ensure that women in the hills who have been badly impacted after the Kedernath and Badrinath floods would get a source of income,” Nandakumar said.

Petainer Innopac Packaging opens world-class Manufacturing plant in India

P

etainer Innopac Packaging, a joint venture between Petainer UK Holdings Ltd and Innopac Containers Pvt Ltd, officially opened its new manufacturing facility close to the Mumbai region in India.

The plant has been designed to provide customers with high quality, high performance and sustainable PET/plastics packaging solutions using Petainer’s advanced polymer engineering technology, enabling customers to enter new markets and enhance their brand at a reduced cost of ownership.

The plant houses world-class blow moulding equipment to manufacture the 20 Litre bulk water cooler jar, petainerCooler™, using preforms produced from Petainer’s manufacturing sites in Europe, as well as a fully equipped on-site design studio, laboratory services and warehousing.

Petainer Innopac Packaging recently also introduced the petainerKeg™, a one-way 20 or 30 Litre keg made out of highly engineered advanced polymers for the beer, wine and other beverage

Beverages & Food Processing Times

segments.

More equipment and products will be brought online in the coming months.

Officially opening the plant, Atit Bhatia, Managing Director, Petainer Innopac Packaging, said: “This is an exciting day and we are delighted that we have delivered on our timely promise to the market by bringing a world-class facility and a worldclass product to the Indian market.

The plant and its strategic location supports our ambitious growth plans for the region which is based on providing customers with an exciting portfolio of innovative and game changing solutions.”

Nigel Pritchard, Group Chief Executive Officer, Petainer UK Holdings Ltd commented: “India presents an exciting and dynamic market opportunity for our innovative packaging solutions. There is huge interest and demand from brand owners in India who genuinely recognise that Petainer’s advanced polymer engineering brings significant benefits in terms of reduced cost of ownership and improved sustainability.”

25

Vol. 8, Issue 08 - January - 2016

CORPORATE NEWS

ITC developing exclusive supply Motilal Oswal to sell stake of Mrs chain for online grocery firms Bector’s Foods to Singapore-based

I

TC Ltd is building an exclusive supply chain for online retailers that will leverage the company’s extensive network of retailers and wholesalers to drastically cut the time to deliver its products, according to two company executives familiar with the development.

Trials for the model are already underway and it is expected to be rolled out by early next financial year.

The lead time for a delivery is typically between two and four hours for most online grocers such as Bigbasket and Grofers, the quicker the better.

ITC plans to supply its range of packaged food and personal care products through the new supply chain.

Under ITC’s new e-commerce-only distribution model, 1,550 wholesalers and some of its two million retailers that are part of ITC’s direct distribution network will turn into sourcing centres for companies such as Bigbasket.

“Point of sourcing will be decided by ITC depending on the point of delivery. The company’s newly developed technology back-end will automatically identify the closest distributor or dealer or retailer, and the e-commerce company will be directed to pick up the product from that particular outlet for delivery, backed by analytics on real-time feeds and insights,” said one of the two executives cited above, asking not to be named.

Under this model, online retailers will not have to invest in distribution centres and can reduce the time for sourcing and delivery, the executive said.

Currently, e-commerce companies either store fast-moving products at their distribution centres or source them from the nearest wholesalers.

The Kolkata-based company, with interests in cigarettes, packaged food, personal care, apparel, hotels and information technology, is among the first movers in the fast-moving consumer goods (FMCG) space to develop a separate distribution model for e-commerce.

E-commerce accounts for just 1-2% of ITC’s revenue from consumer products, excluding cigarettes. But the market is growing fast. By 2020, e-commerce is projected to account for 10-15% of sales of consumer goods companies, according to a December study by lobby group Confederation of Indian Industry (CII) and consulting firm Boston Consulting Group (BCG).

“The e-commerce revolution is going to have farreaching implications for business as we know it. The FMCG industry will have to… invest in digital technologies to both remove mundane physical tasks and improve the effectiveness of its workforce,” said B. Sumant, divisional

chief executive (FMCG trade marketing and distribution), ITC. He declined to comment on the company’s e-commerce-exclusive distribution model.

Given ITC’s distribution and retail reach, the model will benefit e-commerce firms. Besides its 1,550 wholesalers, its products reach 4.3 million of the estimated nine million retail stores in India.

ITC has been focusing on the packaged foods and consumer goods segment to cut its dependence on cigarettes. In the year ended 31 March, the company’s revenue from packaged food products stood at Rs.6,411.27 crore, overtaking Hindustan Unilever Ltd’s (HUL) revenue from the food business (Rs.5,522 crore). ITC’s gross revenue was at Rs.49,964.82 crore. Of this, cigarettes accounted for Rs.30,452.38 crore, while revenue from packaged consumer goods stood at Rs.9,038 crore.

The company aims to reach Rs.1 trillion in revenue from its cigarettes and packaged goods business by 2030.

While e-commerce is growing fast, most consumer goods firms are yet to come up with a sustainable strategy to leverage the opportunity, said Abheek Singhi, senior partner and director of BCG in India.

“While the digital space is attracting a lot of private equity and venture capital funding, most (consumer packaged goods) firms are unclear on the opportunity,” he added.

ITC may be an early mover, but it is not alone.

Dabur India Ltd has also established separate delivery mechanisms for some categories of e-commerce players.

“We have dedicated stockists to meet the specific needs of big e-commerce platforms. These dedicated stockists maintain the inventory and meet the specific needs of these platforms. The needs of some others are serviced through our network of key local grocers. This strategy has been put in place keeping the specific needs of e-commerce players,” said George Angelo, executive director (sales), Dabur India.

Kolkata-based Emami Ltd has also appointed dedicated distributors to service online marketplaces such as Bigbasket, Grofers, Snapdeal, Amazon and Shopclues, said a spokesperson at Emami.

The country’s largest consumer packaged goods company Hindustan Unilever Ltd, Marico Ltd and biscuit maker Britannia Industries Ltd declined to comment for this story. E-commerce is expected to account for $53 billion of global consumer packaged goods sales by 2016, an increase of 47% from $36 billion in the year ended 31 March 2014.

private equity fund CX Partners

M

otilal Oswal Private Equity is close to selling its 20 per cent stake in Mrs. Bector’s Foods Specialties Ltd to Singapore-based private equity fund CX Partners. The deal is expected to be closed later this month for Rs. 300-350 crore. Mrs. Bector’s Foods makes Cremica brand biscuits and condiments.

Motilal Oswal had bought the stake in the Ludhiana-based company in 2010 from Goldman Sachs for Rs.70 crore. According to sources close to the development, Motilal is expected to value the deal at four-five times the original investment.

Motilal Oswal declined to confirm the details while CX Partners did not respond to email queries.

This is part of Motilal’s PE fund’s plans to wind down its $125-million India Business Excellence Fund – I by December 2016. Accordingly, it has been exiting its investments gradually, with at

least one exit every quarter. It partly exited its investment in Hyderabad-based Power Mech Projects Ltd through an IPO in August, selling over 21 lakh shares.

Motilal had invested at an average price of Rs. 159.82 a share while the company’s share issue price was Rs. 640. Parag Milk Foods, another of its investments, has filed draft offer documents with the capital market regulator SEBI. The fund holds about 9 per cent in Parag, which it bought for Rs. 55 crore in 2008.

The fund has also invested in Jaipur-based Au Financiers, a non-banking finance company which gives commercial vehicle loans. Au Financiers received a small finance bank licence from the RBI earlier this year. The PE fund bought 35 per cent stake in the company in 2010 for Rs. 20 crore. The stake will be sold by the end of next year, a person close to the development said. Au Financiers is currently valued at about Rs. 5,000 crore and the Motilal fund still holds six 6 per cent in it.

IRCTC ties up with Food Panda

F

Saurabh Kochhar, CEO of Food Panda, described urther broadening its innovative e-catering his company as an innovative business model facility 'Food on Track', IRCTC has tied which caters to an important consumer need. up with online delivery firm Food Panda, "Our association with IRCTC will be an offering enabling consumers to order from a variety of which addresses a huge consumer need prevailing cuisine options. for years. For long, consumer had limited food The collaboration, to be launched in New options to choose from while travelling with Delhi railway station next month, will provide Indian Railway but newly launched e-catering customers with the choice to order meals at least service by IRCTC is set to change the way Indian's two hours before the travel, according to Dr. A.K. eat while travelling," he noted. "We are excited to Manocha, Chairman and Managing Director of begin action with Delhi station by December and IRCTC (Indian Railway Catering and Tourism are looking forward to extending this offering to Corporation), which is a 1999-founded subsidiary other stations." of the Railways.

IRCTC's Food on Track has KFC, Domino's, Street "After the successful roll-out in the capital, the Foods, Wimpy, TFS, Jan Aahar, Ratna Cafe, Mio service will be extended to other metros and Amore, Alibaba, Cafe Lite, Hello Curry and Ratna cities across the country," he revealed, recalling Cafe besides IRCTC Food Plaza and IRCTC Fast that the IRCTC had recently developed a mobile Food Units under its umbrella. application of the catering facility that can be used on the Android platform.

The delivery, typically, will be aligned to the arrival time of the train at the station.

Consumers can either make advance online payment for the order or make an on-the-spot payment, said IRCTC 37, Nagdevi Street, Ground Floor, Mumbai 400003 India Phone: +91-22-66312022, 23470740 Director (Catering Services) Robin Fax: +91-22-23430740, Mob: 9321096352 Kalita.

Email: parichem@gmail.com Web: www.parichem.com "In the new age, we have to offer passengers with novel food options," he pointed out. "That makes the tie-up with INDENTOR/ IMPORTER / DISTRIBUTOR FOR ADITYA BIRLA CHEMICALS ( THILAND) LTD. Food Panda particularly valuable."

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26

Vol. 8, Issue 08 - January - 2016

CHOCOLATE NEWS

Hershey to sell heat-resistant chocolate bars first made for

soldiers and astronauts moon with Apollo 15 astronauts.

The local candy maker brought it back as the Hershey's Desert Bar in the early 1990s during Desert Storm. Now, Hershey is "exploring commercial opportunities for heat-resistant chocolate in parts of the world where heat is a challenge for selling chocolate," said company spokesman Jeff Beckman.

M

any of you have probably experienced the misfortune of melted chocolate on a hot day. That scenario frequently plays out in some of The Hershey Company's warmest growth markets, such as India, the Middle East, South America and Africa.

The local manufacturer is responding to that weather challenge by revamping a product it sold during two wars. Its Tropical Chocolate Bar dates back to World War II when Hershey made the heat-resistant confection for U.S. soldiers.

The product was requested by the Army and designed to hold its shape after one hour in 120-degree heat, according to the company.

Conventional chocolate melts at about 93 degrees.

The Hershey Company, Pennsylvania's resident chocolate-making behemoth, has signed a White House pledge with 80 other American companies to support action to reduce climate change.

The company has completed successful consumer testing of the new heat-resistant chocolate and plans to introduce it in select markets outside of the U.S. next year, he said. Specific dates for the rollout were not available.

Japanese Company Releases Chocolate-Flavored Instant Noodles

A

Japanese company is releasing a special chocolate-flavored variety of instant noodles just in time for Valentine's Day.

The usefulness of Japan’s new toast-sized, presliced sheets of chocolate was immediately obvious, but not all Japan’s chocolate inventions are such feats of genius. One company has just introduced a chocolate-flavored instant noodle preparation that is certainly creative, but it remains to see if anyone will actually want to put it in their

"Our new process delivers what we believe is the best-tasting, most superior heat-stable chocolate product of any previously developed," Beckman said. While Hershey may have been the first company to develop heat-resistant chocolate, it certainly wasn't the last.

For example, Cadbury in 2012 said it developed a heat-resistant chocolate that stayed solid after three hours in 104-degree temperatures. Swiss chocolate maker Barry Callebaut has also started selling heat-resistant confections, according to the Financial Times.

Nestle, another Swiss company, expects to launch a similar product within three years, according to the report.

mouths.

According to Rocket News 24, one of Japan’s most popular purveyors of instant noodles just announced that next month it will be adding a chocolate sauce with cinnamon option to its instant lineup of fried noodles. The company has several flavors of instant fried noodles available already, including spicy cod roe, mayonnaise, and even pizza-flavored fried noodles, but chocolate is a bit out-there even in that company.

The chocolate-flavored fried noodles come out in time for Valentine’s Day and are reportedly designed with three types of chocolate. First, the standard savory yakisoba sauce is mixed with additional cocoa powder and coffee flavoring.

Then there’s a container of chocolate sauce to pour over the noodles. Finally, there’s a special packet of chocolate chips and cinnamon to sprinkle on top, because at that point there’s no reason not to just throw chocolate chips on top of everything.

The flavors may sound a bit out-there, but the company maintains that the sweet and salty combination is actually very tasty and appealing.

Hershey made nearly 380 million of the 2-ounce Tropical bars for the military during World War II. The Tropical Bar in July 1971 also went to the

Beverages & Food Processing Times

27

Vol. 8, Issue 08 - January - 2016

EVENT REPORT

VDMA Symposium:

German technology fort the Indian confectionery industry steps and varieties of confectioenry production.

From raw material handling and roasting techology to processing technology for cocoa, chocolate products, bars, hard and soft candy, wafers and biscuit to packaging solutions for all these products.

All speakers introduce a wide variety of product ideas and suitable technology.

O

n 8th December 2015 the VDMA Symposiums "German Technology for Confectionery Production and Packaging" took place in The Leela Hotel in Mumbai. 13 German companies present their latest technologies for production and packaging of confectionery products. With more than 140 participants of the Indian confectionery industry, the symposium was very successful. The experts came from multinational companies as well as from local medium sized Indian companies. The event had more than 170 delegates in total including VDMA members in total.

The lecture program gave an overview about all

Other core topics in the lecture program were hygienic design of equipment, flexibility, after sale service concepts as well as energy efficiency.

During the table-top exhibition all participant used the opportunities to discuss special requirements and product ideas with the German representatives.

The Indian market for confectionery is growing steadily. Within the last years, the confectionery industry in India has already invested a lot of money in the modernization and extension of its capacities. The imports of confectionery machines increased continuously and 40 percent of all the imported machines are of German origin.

That shows clearly - the Indian Confectionery Industry counts already on technology Made in Germany. With the VDMA symposium the German companies wanted to deepen already

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existing contacts and establish new contacts alike.

These expectations were totally fulfilled.

The VDMA Symposium was organized by VDMA Mumbai.

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Vol. 8, Issue 08 - January - 2016

BEVERAGE NEWS

Europe to get the taste of Packed Food through an app now Indian yogurt; Danone plans to serve 'mishti doi' there You can scan nutritional contents in

U

nderstanding if a jar of low fat mayonnaise or processed cheese is actually healthy enough is now only a mobile phone scan away. Sydney-based The George Institute for Global Health has launched a nutrition application in India for this, called FoodSwitch.

The mobile application, funded in part through an Australia-India Council grant, allows consumers to scan the barcode of a packaged food item and see easy-to-understand information on fat, sugar and salt levels, using the established traffic light labelling system of red (high), amber (okay), and green (good). FoodSwitch then searches the database for similar but healthier products and displays this on screen, alongside the selected item, for comparison.

Bruce Neal, senior director at the Institute, said the app sometimes made complicated information on nutrition panels immediately understandable.

"FoodSwitch helps consumers evaluate the nutritional content of packaged foods and suggests better options that would have lesser sugar, fat and salt levels," he said.

The app has already been launched in Australia, New Zealand, Britain, China and South Africa; India is the sixth country.

"We have data on nutritional value of 10,000 food items (in India) at present. We will scale it up but as the number of processed items available in India is less, it would take some more time than it does in other countries. We sent our people to major supermarkets, where they collected information of all the processed food brands available. We then created a database of all those products, stating the nutritional values and what is harmful for people with specific types of lifestyle diseases," he said.

To monetize the service, Neal said they later planned to sell data to major food processing companies, as the information would help them come out with healthier products. It is also looking for a social impact investor. "We will soon go for a Series-A round of investment. Our goal is to spread to 50 countries in the next five years. For that, we need millions of dollars in investment," he added.

In this country, he added, they were open to tie-ups with companies from the health, food processing and retailing sectors. The institute has 70 staffers in India, with offices at Delhi, Hyderabad and Bengaluru.

Available for iOS and Android consumers free of cost, FoodSwitch's database of packaged foods has been compiled in collaboration with the Centre for Chronic Disease Control in India. If a scanned product is not in the database, consumers can use the phone camera to send in photos, so that it can be added. "In Australia, we receive about 150,000 photos each year, which allows us to keep the database completely up-to-date," added Neal.

"This will be the largest country we have launched in and there are unique challenges with the size and scale, as well as the number of foods and grocery stores."

Other than taking desi flavours global, Danone also plans to bring in products from its global portfolio. The company will launch ready-to-serve custards soon. "It's a global innovation. In India, people find it difficult to prepare," Marcel said. The company has also applied to the FSSAI, the country's apex food regulator, for product approval of several brands from its nutrition portfolio.

B

engal's 'mishti doi' may soon compete with French creme brulee. A staple or joyous Bengali occasions, he sweet yogurt could find its way to European dinner tables as French dairy giant Danone is piloting a reverse innovation project to launch desi dairy products in some of its international markets.

At present, the company's R&D department in France is studying the recipe of mango lassi, a flavoured yogurt-based drink. While lassi could make it to retail shelves first, mishti doi could be one of the other yogurt-based contenders to follow soon, said people familiar with the matter.

Danone started its dairy business here in 2010 and nutrition business in 2012 after the acquisition of the nutrition portfolio from Wockhardt Group. Since then, it has brought in its international range of flavoured yogurts and its UHT and fresh dairy innovations tailored for the Indian market such as mishti doi, 'chaas', lassi, 'dahi', flavoured yogurts and smoothies. Marcel, who recently took over as MD of the company, calls it `Indovation'."For instance, Protinex, a protein supplement for all age groups, now comes in elaichi and vanilla that are popular Indian flavours," he said.

There is a big similarity between food habits of people in France and India. Along with the tendency of using fresh ingredients to prepare meals, people of both countries are heavy yogurt users," said Laurent Marcel, MD of Danone India.

"The texture of lassi could be very attractive to European palates. Exotic food that can double as healthy alternatives is a big global trend now."

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Vol. 8, Issue 08 - January - 2016

TEA & COFFEE NEWS

Cafe Coffee Day going taking No reason for wild its home delivery model to optimism in Tea Industry Mumbai and Delhi

C

afe Coffee Day will extend its home delivery business model to Mumbai and Delhi over next three to four months and include lunch and dinner options in its retail cafe menu.

The Bengaluru-based cafe chain had run a pilot in the city earlier this month, for which it tied up with hyper-local restaurant delivery company Swiggy to offer customers delivery option for a specially curated food and beverage menu.

Bidisha Nagaraj, group president, marketing, Cafe Coffee Day (CCD) said, the consumer has little time and wants the same kind of F&B experience and product mix at their doorstep, therefore delivery is the right thing for us to do,".

"It is another vertical (as part of the CCD stable) that we are excited about and will focus on it for the next coming months."

For home delivery, CCD plans to rope in third-party logistics players.

"As we move to other cities, we will look at other partners in addition to Swiggy," Nagaraj said. "At present, it is clocking in around 200 deliveries a day with an average ticket size of Rs 350 per order." Nagaraj said that in 2016, the company will focus on food in a big way with additions of lunch and dinner options to its retail cafe menu. "2016 will be about food for CCD, at a high level, we will be looking at introducing more items.

From a consumption standpoint, fragmentation of meals has gone down as consumers want everything in the same place," Nagaraj said.

CCD will also look to add popular selling items from its delivery menu to its cafes and has already introduced a few. The chain has 1,555 cafes in 219 cities, across formats. It plans to open 135 cafes in 2016, Nagaraj said.

1.5% from a year ago in the north. October and November are important, but December onwards, production will taper as the season winds down. Tea trader Van Rees said in its weekly market report that north India’s output in November was “excellent”. That could pose a risk to prices.

C

urrent tea prices are not showing the optimism reflected in shares of tea companies. McLeod Russel India Ltd’s share rose by as much as 4.5%, but it slipped later and closed with a mere 0.3% gain. Shares of other tea companies, which are smaller in terms of market value, saw much higher gains. These gains are on the back of chatter that tea prices could increase sharply in early FY17.

Cut, domestic prices are relatively calm in northern India tea auctions. The region accounts for fourfifths of output. Data from the Tea Board of India shows average prices in the northern India tea auctions are up by about 4% in the latest weekly auction, over last year’s level. But they have fallen since July. The south is seeing a better trend, with a 16% hike in the recent auction, but here again; prices are lower than in July.

How does this square with production? Data is available only till September for India. During April-September, tea output was down by

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Global tea output is down in other major growing countries.

For instance, Kenya’s tea output till October was down by 13.6% while Sri Lanka’s was down by 1.4%, according to data from Africa Tea Brokers Ltd. Kenyan tea prices have firmed up in 2015.

While domestic producers hoped for a similar increase here, prices have not risen in the same fashion.

But recent news reports show managements of companies talking about prices increasing by March-April, by Rs.15-20 a kg. That’s a price increase of over 10%.

Current price and output trends do not show enough reasons to support a surge. Instead, flat to slightly lower trends in output in the northern India gardens are a worry. After its September quarter results, McLeod Russell said per kg costs could increase by 13% in FY16 because of higher wages and input costs. If prices do not increase, output is flat and costs increase that can affect both sales and profit growth. This could change if prices move up. While there is some time to go before becoming pessimistic, there is no reason for wild optimism either.

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Vol. 8, Issue 08 - January - 2016

Floods force MPEDA to abandon international SeaFood show

T

he floods in Chennai have forced the Marine Products Export Development Authority to abandon the India International Seafood Show which was to be held at the Chennai Trade Centre from January 22-24.

This comes at a time when India has made huge strides in marine products exports which in 201415 were at an all-time high. The biennial seafood show, organised by MPEDA in partnership with the Seafood Exporters’ Association of India, highlights India’s potential in the seafood sector. It is one of the major seafood fairs in Asia.

NEWS

China's shrimp exports drop as import volumes skyrocket

S

hrimp ranked as China's second-placed seafood export category in 2014, accounting for 10.6 percent of exports, at 179,000 metric tons.

China remains the No. 1 producer of farmed shrimp in Asia, producing 1.01 million metric tons in 2014, up from 910,000 in 2013. Second place Indonesia produced 630,000 metric tons, up from 565,000 metric tons the previous year, while thirdplaced Vietnam recorded 509,000 metric tons of shirmp compared to 500,000 metric tons the previous year.

However, while China is well ahead in volume terms, its production is growing much more slowly than countries like Ecuador and India, both of which have emerged as big suppliers to global

markets.

While India has cemented its position as the top supplier to the United States, China reduced its shipments considerably, from 42,000 metric tons in 2009 to 32,500 metric tons in 2014.

There's been a similar pattern in China's shrimp sales to the EU, which fell from 40,200 metric tons in 2009 to 28,800 metric tons in 2014.

But while China's exports fell 13.6 percent in 2014, its imports of shrimp rose a significant 10 percent to 78,000 metric tons.

Yet that figure may be understated give in includes only official imports (with Canada in top position, followed by Ecuador) and excludes a massive informal trade in imports

from Vietnam, which supplies Chinese processors and the domestic market with shrimp from its own farms as well as other countries, funnelled through Vietnam to avoid customs duties.

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The show will now be held at Visakhapatnam sometime in the middle of next year.

The 19th edition of the show was held in Chennai in January 2014. The IIFS, which began in 1973 in Mumbai, has emerged as an important platform for stakeholders in the seafood exports sector. Apart from seafood exporters, the show attracts seafood farmers — especially vannamei shrimp producers — manufacturers of processing machines, traders and those engaged in allied sectors.

Indian

Ice cream Congress & Expo 2016

Sources pointed out that because of the floods, a crucial meeting of the organising committee, scheduled for December 2, could not be held.

However, procedural delays and bureaucratic hurdles also contributed to the abandonment of the Chennai fair.

Meetings Discussions Knowledge

Entertainment

28th-29th September 2016 Expo Cente, Sector-62, Noida NCR

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