Beverages & Food Processing Times - October 2015 by Advance Info Media & Events

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Vol. 8, Issue 05, October 2015,

All 42 mega food parks

to be fully operational in next 3 years: Harsimrat Kaur Badal

nion Minister Harsimrat Kaur Badal claimed that all the 42 mega food parks sanctioned by the government will be fully operational within the next three years,. Five parks are fully functional so far, of which the last three became commercial in the past one year, and rest of the parks are in various stages (of completion)," saidthe Minister for Food Processing. Badal also said that the food processing sector's has a great potential to contribute to 'Make in India', and the present government has brought freshness and thrust, with Prime Minister Narendra Modi pro-actively promoting Make in India." "Several international delegations have been coming throughout the year to enquire about partnering with us, further added the Minister. Compared to western countries where the market has stagnated, India has a huge potential as it is a

young country, and the consumption is set to treble in the next few years. Forty per cent of the wallet is spent on food in the country. Several schemes including the Rs 2,000 crore corpus for cheaper loans through NABARD, subsidies to set up food parks, cold storages, abattoirs and 100 per cent foreign direct investment in food processing are expected to boost the sector, she added. India is one of the largest producers of food globally, but despite having huge sources of raw material, only 10 per cent of the food is processed. She pointed out that wastage at the harvest and transportation level is huge. Badal further said food processing can significantly reduce wastage, generate employment, offer better prices to farmers and help in reducing food inflation. The food processing ministry has also surveyed eight to nine of its sectors to assess the kind of labour required and how to provide appropriate skills. She said the ministry is laying special emphasis on promoting value-addition at the farm-gate level, and is working towards helping youths turn entrepreneurs. "We are encouraging value-addition and entrepreneurship at the farming level," Badal said.

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An Rs 80 crore demanded by Food sector bodies from FSSAI

refund of Rs 80 crores has been demanded by joint committee of food sector's nine organizations from FSSAI for product approvals through advisories since 2013. The panel, National Joint Action Committee, said that the advisories issued by the Food Safety Standards and Authority of India (FSSAI) since 2013 should be withdrawn immediately to give respect to Supreme Court's order of August 19, which hold that these directives do not have the force of law. A statement, issued by the Confederation of All India Traders (CAIT), which is a member of the committee, said â&#x20AC;&#x153;About Rs 80 crore have been collected by FSSAI for product approval through advisory and since advisory has no locus standing,

the said fund should either be refunded to persons from whom it is collected or should be used for Clean India drive of Prime Minister." The statement also said, "Nine national organizations of stakeholders of food industry have join hands together and formed a National Joint Action Committee to launch a nationwide campaign against autocratic attitude of FSSAI and to make a strong public advocacy in the country for review and overhauling of Rules and Regulations of Food Safety & Standards Act." "Since 2013 the FSSAI has issued about 15 advisories which are in public domain and with order of Supreme Court, all such advisories tend to be redundant and as such liable to be withdrawn," it added. Food safety regulator FSSAI was established under Food Safety and Standards Act, 2006, which consolidates various acts and orders that hitherto, handles food related issues. Organizations including CAIT, Indian Drugs Manufacturers Association, Indian Hotel & Restaurant Association, Protein Food & Nutrition Development Association, Federation of Pharma Entrepreneurs, All India Food Processors Association, Retail Druggist & Chemists Association, All India Transport Welfare Association and Bhartiya Kisan Morcha are the members of the committee.

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Vol. 8, Issue 05 - October - 2015

BEVERAGE NEWS

Coke Zero leads as sugar-free fizzy drinks record 39% growth in a year in India

ccording to the fizzy drink industry insiders, the sugar-free fizzy drinks have hit their highest-ever sales figures in India, bucking a downtrend seen in the overall soda market in the country over the past few quarters. Data from researcher Nielsen reveal that the diets and lights sparkling drinks category has recorded 39% growth for the period between September 2014 and August 2015, up from a compounded annual growth rate of 13% between 2010 and 2014. Coca-Cola's zero calorie drink Coke Zero leads the revival. The contribution of diets to overall sparkling drinks has doubled, though on a very small base. According to industry estimates, sales in the diets and lights category have risen to Rs 300 crore in the past 12 months, compared with Rs 100 crore in 2010. Debabrata Mukherjee, vice-president, CocaCola, marketing and commercial said: "We know that Coke Zero has resonated very well

with consumers, and is seeing strong consumer traction and high rate of conversion from trials to repurchase." He, however, declined to comment on the growth numbers. Coca-Cola said it is doubling distribution of Coke Zero to 200 cities. The beverage maker had sold Coke Zero exclusively on e-commerce platform Amazon last year for two weeks before putting it in stores, and at that time, the company had said sales crossed 100,000 cans within a fortnight. Coke Zero has been cutting sales of Diet Coke. Coca-Cola executives, however, denied it. Coke Zero, which has been positioned as a drink closest to the taste of the actual cola and one which does not have the aftertaste of an artificial sweetener, has touched $1 billion in annual global sales. The beverage was launched in 2005 to steer sales of cola amid growing public concern over sugary drinks.

Vol. 8, Issue 05 - October - 2015

BEVERAGE NEWS

Let your Cake tell a Unique story this Festive season it be in creating sea shells with surprise fillings inside or simple hollow decorations, the Coverlux stands apart. The Coverlux truly comes into its own when used to make pralines. Ably supported by its more cost effective cousin, the CARAT Cover, the Carat range comes with the Puratos guarantee of top notch products being gently processed at state of the art facilities to produce truly world class chocolate.

he Indian festival season does not last a simple week or two, it lasts months, beginning with the Janmashtami, moving on to Mumbai’s favourite festival the Ganesh Chaturthi, and Eid, drumming up the tempo with the dandia during Navratri, and the big bang of Christmas and New Year, bring up the grand finale. Cakes, cookies and patisserie delicacies are no more just restricted to normal days. More and more people are moving away from only serving traditional sweets to including cakes and chocolates as an integral part of their celebrations, to share with friends and family as part of their joy. Capturing the imagination of the consumer has never been more challenging or easier than now. And this helping in creating this magic are the perfect ingredients that add shine and sparkle to your creations. In your endeavour to create the perfect chocolate mousse cake or perhaps in a patisserie endeavour you reach for Puratos’ Carat Coverlux. It’s almost an unconscious decision, you call on the years of Puratos’ expertise, the cutting edge technology that backs all Puratos products to produce consistent results time after time, to work for you. To produce a world class cake, the most important tools a bakery and patisserie has in its shelves are world class ingredients.

With the ease of multiple uses that CARAT products can be put to, the wastage is reduced, making its use so much more cost effective. Carat Cover are perfect for all applications whether it be for Ganache, for moulding, enrobing or flavouring. Making it the go to chocolate for a number of uses. Meanwhile finishing the cake is no more just a question of throwing on a ganache, and some decoration, it has now become a case of increasing the shelf life while making the cake sparkle. Reaching for Brillo, Puratos’ Thixotropic cold glaze allows you to lock in the freshness of the cake while maintaining the quality and increasing the shelf life too. The shine of the Brillo is just that—Brilliant.

Brilliant in working with delicate mousses to produce that lovely shine of a well finished product, increasing its visual appeal.

and beauty, lies the baker who puts his all into every cake, making it truly a sensational feast for both the eyes and the taste buds.

In 4 variants from BRILLO Neutral, BRILLO White, BRILLO Caramel and BRILLO Cocoa, users can now add a definite taste layer to their creations, adding that subtle something special, which sets a Puratos user apart and definitely a Puratos cake apart from the competition.

Behind the expertise of the baker, bolstering the bottom line of the bakery is Puratos working quietly, behind the scenes, to bring superb ingredients at cost effective price, to help make each cake in the shelf a truly world class product, that shines in its own right.

The Brillo adds its brilliant touch in fruit cakes as well. It locks in the freshness of the fruit cake. BRILLO Neutral helps to keep the fruit looking fresh and tasting fresher – increasing its shelf life for many hours more, thereby helping to reduce wastage.

Softly shouting its own unique story!

Cakes and patisserie products now are so much more than just a simple concoction. End consumers would like to experience that something more in each bite, it’s no more just a simple matter of tasting good without the cake looking superb. The looks are just as important in wooing the consumer as the taste. And somewhere between this competition for taste

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Carat Coverlux is the hard compound chocolate with an excellent chocolate taste. A premium range of dark, milk and white multipurpose compound chocolates made with high quality ingredients and refined to a smooth texture. Great for patisserie applications.

Moving on to the decoration, again the Coverlux is custom made to shine during the enrobing of a cake. The Coverlux shines in all its 3 variants – the Dark, Milk and the White. Calling on years of expertise that is the hallmark of a Puratos product, Coverlux truly brings all that lux into the baking and patisserie world. The versatile Coverlux range extends its use beyond a simple ganache.Coverlux, comes into its own when tasked with the job of making hollow figures that can be de-moulded easily. Whether

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Vol. 8, Issue 05 - October - 2015

FOODPROCESSING NEWS

GMR, Japan's JGC co-develop food processing park in Kakinada Sez

MR Infra today said its subsidiary Kakinada SEZ Pvt Ltd has signed an agreement with Japan's JGC Corporation (JGC) for co-developing Japanese Oriented Food Processing Park at its Kakinada SEZ. The park is planned to be spread over an area of 300 acres having both value added and ready to eat products. JGC and GMR will jointly undertake a detailed study for developing and operating the export oriented food processing park catering to various food and agro processing sectors like sea food, fruits & vegetables, pulses & grains, dairy and spices & nuts. The significant traction built by the governments of India and Japan and the recent discussions between the CM of Andhra Pradesh and the Ministry of Economy Trade & Industry (METI), Govt of Japan have persuaded Japanese industry to increase investments in India. Japanese organisations like JBIC, JETRO, METI, Ministry of Land Infrastructure & Transport (MLIT) and Ministry of Agriculture Forestry & Fisheries (MAFF), Government of Japan as well as other Japanese financial institutions have expressed their support for this park, GMR added. GMR Group has 10,500 acres of industrial region at Kakinada which is strategically situated on the Eastern Coast rich in oil and natural gas deposits.

Aashirvaad ghee from ITC to debut this Diwali

TC to enter the dairy market by launching its ghee under the Aashirvaad brand this Diwali.

The ITCâ&#x20AC;&#x2122;s Aashirvaad brand has achieved success in the unorganised and commoditized Atta segment and also sells spices and other food products. According to VL Rajesh, ITC's divisional chief executive, foods, "The Aashirvaad brand has tremendous brand equity among households and housewives, so we have decided to launch ghee under the Aashirvaad umbrella to make an instant impact and give the product a big leg up." Aashirvaad is a Rs 2,600-crore brand and controls 74 per cent share of the country's packaged atta market, which ITC entered in 2002, a year after getting into packaged food with ready-to- eat products. Several dairy related categories are in various stages of development as part of ITC's plans to extend its portfolio, Rajesh said. This includes ice-cream, butter, cheese, curd, milkbased drinks and ready-to-mix products similar to Complan and Horlicks. The Rs 75,000-crore packaged dairy market in India is expected to grow at 15-16 per cent as companies introduce value-added products, according to industry estimates. Of this, the packaged milk market alone is around Rs 50,000 crore, while ghee is about Rs 8,500 crore. India is the largest producer and consumer of dairy products.

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

FSSAI to set up infrastructure facilities to ensure quality of milk

ith festive season around the corner Food safety regulator FSSAI has decided to facilitate setting up of infrastructure facilities in metros so as to ensure quality of milk and its products. During the festive season concern for safe milk and its products intensifies when the preparation, sale and consumption of these is at its highest." Food Safety and Standards Authority of India has, therefore, decided to facilitate setting up of infrastructural facilities and has asked for details from manufacturers about testing equipment within 15 days. The decision follows concerns raised by large section of media from time to time on quality of milk and its products in the market.

FOOD SAFETY NEWS

To check mislabeling on Nutraceuticals, Ayurvedic products, FSSAI proposes norms

ood Safety and Standards Authority of India (FSSAI) has come out with regulations proposing to ban the sale Nutraceutical products as ‘medicines’. This regulation aims to check mislabeling of ‘health supplements’. FSSAI has also framed regulations for products based on ayurveda, sidhha, unani and other traditional health systems. According to a draft order issued by FSSAI, “Every package of food or health supplements shall carry the information on the label... the words Food or health supplement... the term ‘Not for medicinal use’ shall be prominently written on the label.” FSSAI has proposed to fix the permissible limits of various ingredients used in the products, which are based on traditional health systems. The companies cannot claim that their nutraceuticals and health supplement products are for therapeutic and curative purposes, under the new norms proposed. FSSAI has also proposed the maximum usage

The regulator official and bulk consumer will see the equipment found suitable, and efforts would be made to set up these facilities in metropolitan cities, to begin with, before the coming festival season, it said.

levels for cow's milk, buffalo’s milk, camel's milk, ghee, curd, butter, honey, gold, gold foil, silver, pearl in ayurveda, siddha and unani ingredients based products. The limit has been fixed as maximum usage levels per day for use as a health or food supplements which are based on ayurveda, siddha and unani. The regulator will conclude these regulations after receiving comments from all stakeholders on the draft note. According to FSSAI the benefits of specialty foods containing ingredients based on ayurveda, unani and siddha and other traditional health systems of India, should be shown by science based evidence. According to ASSOCHAM, about 60-70 per cent supplements in the nutraceuticals market, which has potential to grow to USD 12.2 billion in the next five years, are fake and such unregistered

and unapproved products should be recalled. Thus it has suggested that FSSAI should come up with safety norms for nutraceuticals and dietary supplements. Heinz, Kellogg's, Nestle, Hormel, Unilever, Johnson & Johnson and GlaxoSmithKline Pharmaceuticals are key players in this segment. India accounts for 1.5 per cent of the global nutraceuticals market.

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This would enable bulk and individual consumers easy access to testing equipment to ensure that the quality of milk and its products brought by them is

Baba Ramdev’s atta noodles to hit stores in 1-2 months; await FSSAI nod

amdev-owned Patanjali group wants to take advantage of the vacuum created by Maggi ban and is trying to make the most of this by launching noodles from its own stable. According to Patanjali, their Atta noodles are awaiting approval from FSSAI and are likely to be available in stores in the next 1-2 months. Noodles prepared by Patanjali group are undergoing testing according to Yoga guru Ramdev's spokesperson S K Tijarawalathe. Patanjali has not launched the noodles yet and are not putting the product on shelves immediately. The product is going through internal testing. Swamiji has said that the product will be safe and there will be no added MSG. We will comply with the norms on lead. But obtaining the approval is could take more time, as the food safety regulator has done away with process of product approvals following a recent Supreme Court order. It will reintroduce the procedure through regulations. FSSAI is busy streamlining the product approval process and is expected to come up with new regulations in six months.

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: wwww.efrac.org

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Vol. 8, Issue 05 - October - 2015

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Vol. 8, Issue 05 - October - 2015

BAKERY

Mad Over Donuts brings its 56th outlet in India and 23rd in Mumbai

ingapore-based Mad over Donuts (MOD) has brought on its 56th outlet in the country and opened its 23rd outlet in Mumbai. With presence in Mumbai, Pune, Bengaluru, Delhi and NCR, Mad over Donuts is strengthening its position in India. Launched eight years back in India, MOD offers eggless donuts, cupcakes and coffees. Tarak Bhattacharya, COO-Mad Over Donuts said, "Churchgate is an iconic Mumbai location for every business... Our new store is designed in a Cafe style format; where there will be ample of space for seating,"

Hindustan Unilever’s Modern brand sold to Nimman Foods GROUP

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verstone's Nimman Foods has acquired the bread and bakery business of India's largest consumer goods company, Hindustan Unilever (HUL). The sale of the Modern brand is in line with the company's strategy to abandon non-core businesses and focus on packaged foods business. HUL CEO and managing director Sanjiv Mehta said: "Modern is an iconic brand, which has been delighting consumers over the years through its range of high-quality bread and value-added bakery products. The Modern brand offers a full range of white and sweet breads, health and wellness breads, and value-added bakery products, such as cakes, muffins, buns, bread rolls, and cream rolls.

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"Modern is a marquee brand which has strong recall and a long-standing history." Currently, the business has six manufacturing units and a network of franchises across the country.

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Everstone Group co-founder and managing partner Sameer Sain said: "Modern is a marquee brand which has strong recall and a long-standing history.

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"Everstone is committed to making significant investments in not only unlocking the brand's true potential, but also, once again, managing it as an independent company."

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Vol. 8, Issue 05 - October - 2015

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Vol. 8, Issue 05 - October - 2015

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Vol. 8, Issue 05 - October - 2015

FOOD PROCESSING NEWS

McDonald’s plans to put All-Day Food and Drink industry all set to Breakfast campaign from United expand as 72 million households enter the $5-10K income group States to Indian cities Breakfast campaign here. We would try to build our breakfast along with our McDelivery Service." Paliath is overseeing 213 restaurants.

cDonald's is assessing the possibility of extending its All-Day Breakfast campaign from United States to Indian cities, hoping corporate clients, in particular, will subscribe to the idea of eating out-of-home breakfast. Breakfast is fast becoming a sweet spot for the quick-service restaurant segment across the world. With close to 18% of the breakfast-consuming people in India eating outside home, there's room for growth and McDonalds in the long run are bullish on collaborating with B2B for breakfast. Ranjith Paliath, vice-president (business operations), McDonald's India (West & South) stresses, "McDonald's is keen to build out-ofhome breakfast as a category in India and at this point evaluating the possibility of All-Day

McDonald's breakfast menu comprising wholesome and grilled platter with veg/egg and sausage muffin, hash brown, hot cakes with maple syrup along with McCafe offerings, is available across its breakfast serving outlets between 7 am and 11 am in India. In smaller cities, the restaurants open at 9 am. However, the menu is not available beyond 11 am, after which the regular menu is offered. The All-Day-Breakfast campaign, launched in the US since October, intends to liberate breakfast. Amid slumping sales, the move according to McDonald's US President Mike Andres, is the biggest strategic decision since 2009 when the fast-food chain introduced its McCafe line. McDonalds is focusing on developing awareness of breakfast offerings and creating demand at this point, in the long term, it would naturally evolve in that direction (All-Day-Breakfast), according to Rajesh Kumar Maini, GM, corporate communication, McDonald's India (North & East).

Future Group increasing food manufacturing to reach

This will drive expansion of the food and drink industry," the report said. The report noted however that regulatory hurdles would hold back multinational investment.

ccording to a report, by BMI Research, a Fitch Group company around 72.5 million households have entered in the USD 5,000-10,000 (Rs 3-6 lakh) income bracket over next 5 years will drive the expansion of food and drink industry in India, but regulatory hurdles may hold back MNC investments in the sector. Although strong demographic and urbanisation dynamics, alongside rising household incomes, bodes well for the rapid growth in food and drink industry, regulatory challenges remain. Consumer dynamics are very favourable in India over the next five years, as more households enter the middle class and urbanisation accelerates.

Future Group over the time has ventured into a frozen food business, dips and sauces through a brand called Sanjay's kitchen. Their biscuit factory, rice mill, flour mill, spice mill are getting into production. The company is launching a brand in the next 15-20 days... where it will offer hundreds of varieties of flours, 26 variants. Future group are also looking at creating a brand around vegetables and fruits called So Fresh in the southern part of India. Another area that Future has “bet big” is processed oats, Biyani said, “We are setting up a huge plant in Sri Lanka to process oats. We really looked at food and searched, it came out to be a food that mothers would love to give to their children because it is a very filling food, a very healthy food that can be mixed with other food items. We will be launching

Future Group has a number of advantages over its rivals as it works to grow in India. In particular, Future plans to leverage its relationship with Indian consumers. As part of the drive into food and other FMCG areas, Future also revealed that it has entered into a tie-up with Patanjali Ayurveda. In addition to Patanjali's existing line-up, the firm intends to launch instant noodles to take advantage of the space in the market created by Nestlé’s temporary withdrawal of Maggi noodles.

“We are one of the leading brands on Amazon India in their health and gourmet section executing over 2,000 orders per month. And, we see this increasing over 40 per cent, month-onmonth,” Kumar added.

erial entrepreneur and angel investor Sanjay Mehta is funding Mumbai-based online organic food brand Naturally Yours in an undisclosed amount. With this investment, Naturally Yours plans to expand to new product categories and increase the product range. Founded in 2010 by husband-wife duo Vinod Kumar and Priya Prakash, Naturally Yours has about 100 products under its brand name. It sells on portals like Amazon, Flipkart, shopclues, Healthkart and Pepperfry, besides on its own website NaturallyYours.in.

Stating that with more Indians consuming organic food, the Indian organic food market is growing at a compound annual growth rate of 30 per cent and is set to touch $1 billion in 2015, Kumar said Naturally Yours was planning to focus on selling purely in the online medium over the next 12 to 24 months. “We see a huge gap in a lot of product categories in the organic and wellness industry and we will launch about 100 new products over the next 12 to 24 months to fulfil this gap,” said Priya Prakash, co-founder of Naturally Your.

Yum! Brands, reports 18% drop in its India same store sales in July-September quarter Taco Bell. This is the fourth consecutive quarter when the American fast foods company has posted a double-digit fall in same store sales. Same store, or like for like, performance is a key metric for retailers. It compares sales for two periods after excluding the numbers from any stores opened or closed in between.

While Biyani insisted that the company is eyeing “profitable growth, but “We are not going to pursue mindless growth we are going to pursue good growth, profitable growth...The disproportionate allocation of capital is only going to be put where we can grow profitably. We are not going to increase debt but use our cash flows.” Future believes that expanding its food production business will go hand-in-hand with growing its food retail interests. The company said it will increase the number of small scale outlets that it currently operates from 500 to 4000. The group is targeting 70% of sales through its food stores, which include the Big Bazaar format, to be own label.

India is home to almost 1.3 billion people, and according to BMI Research the population is expected to grow by more than 10 per cent over the next decade.

“The money will also be used to expand the core and the support team as we plan to achieve a run rate of between 10,000 and 15,000 orders per month in the next 12 to 24 months,” Vinod Kumar, founder of Naturally Yours, said

a brand here and probably in the next 4-5 months we want this oat brand to be a part of every kitchen household in the country.”

uture Group is planning a major push in food manufacturing as part of its drive to increase sales to INR10trn (US$154.2bn) over the next six years. Future Group's partners and suppliers, founder and CEO Kishore Biyani said that the company believes investments in food manufacturing and small format stores will drive compound sales growth up by 25% from current levels of INR2.2trn. Additional growth is also anticipated from Future's digital strategy, the executive added. Biyani said that Future has already started its push into the Indian food sector. Nine months ago, the company inaugurated a food park where it will manufacture products across a variety of categories and build a manufacturing base.

"In addition to a weak infrastructure network, India suffers from burdensome administrative procedures, a complex taxation framework and regulatory hurdles," the report said, adding that the Goods and Services Tax ( GST) is unlikely to be implemented by its suggested date of April 1 2016. "In the meantime, food and drink companies will continue to face complex federal and state tax laws which make cross-state transportation difficult," it said.

Seed funding for Online organic food brand Naturally Yours

US$154.2bn over the next six years Elsewhere, Future entered into a partnership to bring Sunkist juice to India and the company is now looking at extending the Sunkist brand into confectionery in the market. Future is also stepping up its presence in bakery and dairy. The company entered these sectors via its acquisition of Nilgiris and Future intends to roll the dairy brand out on a national basis. Future is also working to expand in the frozen dessert and ice cream sector and the company is looking at joint ventures in the space to fuel growth, Biyani revealed.

"In addition to a weak infrastructure network, India suffers from burdensome administrative procedures, a complex taxation framework and regulatory hurdles," the report said.

um! Brands have reported an 18% drop in its India same store sales in the JulySeptember quarter, as competition increased in the quick-service restaurant space. Yum brand is the operator of Pizza Hut, KFC and

Beverages & Food Processing Times

Yum's overall sales declined 9% from a year earlier, as sales from new stores partly offset the drop in same-store sales. It posted an operating loss of $8 million (Rs 52 crore), the worst in at least 15 quarters. Yum operates 426 Pizza Hut stores, 378 KFC outlets and seven Taco Bell restaurants in India.

Vol. 8, Issue 05 - October - 2015

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Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

AGRO PROCESSING NEWS

India to boost the ailing

tomato-growing sector in Ghana of NRDC, said, “A team from NRDC will be going to Ghana on September 29 to kick-start the project in collaboration with the CSIR-Ghana, which runs a string of national institutes on the lines of the Indian CSIR (Council for Scientific &Industrial Research).”

hana, traditionally a gold and cocoa economy with a population of 27 million with a good Indian presence, has a diversified economy with a growing agriculture sector and industry. It has, however, been struggling with its tomato farming over the past two decades. India will help enhance the sick tomato-growing sector in Ghana. A combination of high-yielding varieties and latest farm techniques will be tested on the West African nation’s soil. The Ghanaian government has allotted three plots of five acres each in three different regions to the National Research Development Corporation (NRDC), which is leading the Indian effort. With the Centre launching a major Africa policy and set to host the Indo-Africa Summit in October in New Delhi, with 54 African nations expected to take part, this is one of the many projects on the anvil. The Ministry of External Affairs had firmed up the bilateral, $2-million project. H Purushotham, Chairman & Managing Director

According to the International Food Policy Research Institute in a study pointed out Ghana has not been able to sustain processing plants, and is also finding the going tough in terms of improving livelihoods of those households involved in tomato production. Despite government interventions that include establishment of tomato-processing factories, tomatoes of the right quality and quantity for commercial agro processing are not being grown. Many farmers still prefer to plant local varieties, typically with high water content. Low average yield, lack of access to markets and competition from imports makes life difficult for the tomato farmers. The NRDC will get seed companies, equipment manufacturers and agri-scientists from India to implement the effort over the next three years. The Ghana government will provide local resources, farmers and capabilities here. A few years ago, the corporation had helped set up a Centre for Technology Demonstration in Ivory Coast. About 250 technologies from India were on demonstration. Over the past five years, the move has helped 166 small and medium enterprises take shape with local entrepreneurs, he said.

Tata Chemicals plan to produce new brand for Food portfolio to treble revenues to Rs 5,000 crore in 5 years outlets from its current 1.43 million outlets. The food market in India is pegged at Rs 6 lakh crore, including rice, staples, flour, spice, pulses with many segments controlled by unbranded players including local kiranawallahs. However, Tata Chemicals wants to replicate its success of converting loose salt market 25 years ago into a category that is two-third branded now.

ata Chemicals, the maker of branded salt and pulses will shift existing portfolio of pulses and spices under i-Shakti label into a new brand "Sampann" which will also house future launches in the staples and food segment. The company is all set to create a new umbrella brand for its foods portfolio as it looks to treble revenues to Rs 5,000 crore in 5 years by entering newer product categories.

It won't be easy as unlike salt, many segments such as spices, additives and staples have strong regional preferences where local brands dominate. Within spices, there are many regional players. In pulses, the challenges are different.

Customisable, easily accessible insurance services are vital for sustaining and developing livestock and aquaculture industries in India, says Swiss Re reports of adequate about, and access to, insurance and micro-insurance products.

• Agriculture contributes 15% to India’s GDP. Livestock contributes 26% to agricultural GDP • 91% of cattle and 99.4% of cattle-holders in India are uninsured • India ranks second in the world in aquaculture with a market share of 6.3% • Aquaculture insurance services are very few and difficult to access Swiss Re released two separate reports on the livestock and aquaculture industries in India based on a study on the developments, gaps, risks and opportunities across rural and urban populations. The reports, titled ‘Livestock in India – diversification for rural development’ and ‘Aquaculture in India – growing a new industry’, provide valuable insights, highlighting the need for increasing insurance penetration in these sectors to bridge the protection gap in India, making the country a food secure nation. Earlier this year, Swiss Re partnered with the Maharashtra government to improve crop insurance schemes for farmers in this state. The partnership aimed to increase the awareness on crop insurance and enable sustainable living for farmers, as well as help them fast-track settlement of their insurance claims. Through this collaboration, Swiss Re would assist in village level surveys for crop loss through satellite-based imaging. The company will also implement a pilot project covering five crops, including Jowar and Cotton. With a vision to make the state a role model for others, Swiss Re’s subsequent plan is to cover a large number of villages in Maharashtra. Agriculture is a risky business exposed to volatile production and commodity prices, and ensuring a sustainable food supply for India’s growing population is one of the biggest global challenges today. There is a need for insurance companies to reach the rural markets through new marketing mechanism and rely less on the traditional bancassurance model. Swiss Re plans to work closely with partners in the agriculture food chain, including associations, government, industry bodies and insurance partners, to improve the rural sector's access to modern financial risk management and bring its benefits closer to them. Two of the industries with a big growth potential but underinsured are livestock and aquaculture.

According to Richa Arora, chief operating officer of Consumer Products Business at Tata Chemicals, "The Indian consumer believes that the best nourishment comes from a thali and we want to be part of the change by adopting more branded food.So, all products that are part of the thali are candidates and which of these will we enter is a matter of timing and phasing,"

India is the second largest livestock market in the world, with 104.52 million of India’s 195.6 million rural households owning cattle. However, this huge livestock industry faces a number of potential threats including floods, fires, epidemics and unavailability of fodder. Moreover, there are no customised insurance product offerings to suit the diverse needs of farmers from different regions and backgrounds.

The company will use its learning and distribution strength of its salt portfolio that accounts for nearly 80% of its consumer products division with nearly 69% share. As part of its 'Grow More Pulses' initiative with Rallis, the company engages with 1,50,000 farmers across four states for sourcing and will expand retail footprint to 2.5 million

In India, insurance is bundled with credit, which are not always what farmers need, as the requirement for insurance can be for a longer period compared to the credit period. If the farmers want to renew their insurance policies, they would be obliged to take out another loan even when they do not need one. The issue is further compounded by lack

Beverages & Food Processing Times

“Offering localised and tailored policies can be an effective way of convincing livestock farmers to take interest in insurance. Bundling revenue protection cover with livestock insurance could be another,” said Harini Kannan, Head of Agriculture Reinsurance for South West Asia at Swiss Re. “Infrastructure and distribution are very real challenges in India, but these can be overcome with careful planning and innovative use of technology. Farmers should be given affordable and easy access to facilities like vaccination of animals, advice on best farming practices, market and weather information. Regulatory and process reforms for livestock should take this into account.” Almost 14.6 million people in India make their living from fishing. Marine and farm fish harvests in India have doubled since 1992 to 9.04 million tonnes in 2013. India’s marine food exports rose from USD 1.64 billion in 2009-10 to USD 4.95 billion in 2013-14. Most of this growth stemmed from aquaculture – an industry that was widely supported by insurance companies in its boom time in the mid-nineties, but which has since lost favour owing to uncontrollable disease outbreaks in aqua farms. Aquaculture is at risk from diseases like white spot syndrome, early mortality syndrome, argulosis and others; from natural perils like heavy rains, storms, earthquakes or tsunamis; from cannibalism (triggered by overcrowding), malnutrition and predator attacks. There is a variety of insurance schemes in the Indian market for aquaculture; however access to them is extremely difficult, which adversely affects the number of subscriptions. “Aquaculture needs to transition from a family-run to a commercial business with proper development of knowledge and infrastructure,” added Harini. “Small-scale farmers can benefit from forming organisations, sharing resources, helping each other, and implementing best management practices through cluster farming. Credit-linked insurance, gross margin protection and hedging of input cost can go a long way toward transforming the industry into a commercial business able to supply growing cities.” “Swiss Re has a vast repository of knowledge at its disposal, gained from claims, risk management and products structures from across the world. We aim to translate this experience to the Indian market and offer relevant products to all, especially the underserved,” said Harini. “Insurance cannot substitute for the harvest of their efforts, but can shield them, to an extent, from unfortunate and unseen circumstances that may threaten their very means of livelihood. There is a lot to be said about the possibilities for a food-secure India and a lot more that can be done if all the concerned stakeholders, from the grass-root level to the highest form of Government, make concerted. efforts in that direction,” she concluded.

Vol. 8, Issue 05 - October - 2015

COMPANY OF THE YEAR AWARD to FRICK INDIA LIMITED

rick India Limited has been awarded “COMPANY OF THE YEAR AWARD” by Indo-American Chamber of Commerce (IACC-NIC) at their “Business Leadership Awards and Fellowship Night” on 14th September 2015, at Hyatt Regency, Bhikaji Cama Place, New Delhi. The Chief Guest of the event, Mr. Ravi Shankar Prasad, Hon’ble Minster for Communications and Information technology, presented this award to our Managing Director, Mr. Jasmohan Singh in the presence of Mr. Lalit Bhasin, Regional President

Going global all the way: Spices Board India

he Spices Board India has decided to become global and is launching premium retail outlets abroad to sell around 30 of the choicest spices and value added products under the "Spices India" and "Flavourit" brand names. Signature stalls would be set up in overseas market in partnership with private investors, said Spices Board chairman A. Jayathilak and further added that the stalls will help us to gain access to more international markets and further promote the popularity of Indian spices abroad. Spice board of India functions under the commerce and industry ministry and is an autonomous body responsible for the export promotion of the scheduled spices and production development of some of them such as cardamom. Spices Board enterprise - Flavourit Spice Trading Ltd (FSTL) has invited expression of interest franchises for 'Spices India' signature stalls in foreign markets. Jayathilak also added that the stalls are part of the board's efforts to bring about systematic diversification and sustainability of the industry. Apart from whole spices, the store also has a line of lifestyle and personal care products such as beauty creams, clearness oils, bathing bars, shower gels and shampoos all flavored with spices. Spiceflavored chocolates are added attractions. The FSTL is currently offering three different franchisee operating models: COFO (CompanyOwned, Franchise-Operated), FOFO (FranchiseOwned, Franchise-Operated) and SIS (Shop-inShop) retail concept wherein retail stores share a dedicated space for Spices Board products.

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

FOOD SAFETY NEWS

100 Food streets to be adopted during first phase of Surakshit Khadya Abhiyan

US-based peanut company executive convicted of shipping salmonella-tainted peanut butter people and infected 714. This was one of the largest food recalls in the country's history.

sessions on cleaning, hygiene and sanitation for safe food, walkathons and media dissemination programmes for consumers and street food industries will be organized across the country.

campaign - Surakshit Khadya Abhiyanplanned by CII and its partners, including consumer organisation VOICE, and National Association of Street Vendors of India ( NASVI), rolled out as many as 100 food streets across the country will be adopted, an initiative to develop a culture of food safety in the country. "In phase one, the target is to adopt 100 food streets across the country, generate awareness on food safety among 10,000 consumers and build capacity on good hygiene and manufacturing practices by training employees of 300 SMEs towards food safety," CII said. Under the campaign, nation-wide sensitization

CII is also organizing Food Safety Advocacy and Capacity Building programmes across Delhi, the North-East, Mumbai, Bangalore, Lucknow, Jamshedpur, Pune, Ahmedabad, Kolkata, Chennai and Siliguri, among others. The industry programmes are designed to upgrade supply chain participation across the food industry to international standards. The broader objective is to enhance consumer awareness on food safety aspects like labels, storage conditions and related hygienic practices. Street food vendors, schools and colleges are also part of the programme. Food service providers, including the Railways, street vendors and mass caterings, will be sensitized on how to produce and serve safe food.

Besides Parnell, his brother Michael Parnell, a food broker, has also been sentenced for 20 years imprisonment. Michael supplied peanut paste from PCA to food manufacturer Kellogg's.

former executive of a US-based peanut company has been convicted of shipping salmonella-tainted peanut butter and has been sent to prison for 28 years. A federal judge in Georgia ruled that Stewart Parnell, former owner of Peanut Corporation of America (PCA), knowingly shipped contaminated peanut butter from the Georgia facility, as well as faked results of lab tests meant for screening salmonella. He has been held responsible for the 2008 and 2009 salmonella outbreak, which killed nine

Federal authorities found a leaky roof and rodents in the plant, which are ideal conditions to brew salmonella. Besides, they found emails and records that showed that the food was shipped despite lab tests confirming that the products were tainted with salmonella. The judge said: "These acts were driven simply by the desire to profit and to protect profits notwithstanding the known risks from salmonella. This is commonly and accurately referred to as greed."

12.5 per cent food items found Bombay High Court upholds with unapproved pesticides Food Safety law to 'remedy evil' according to government test

dismissed the petition saying that, "This is a social legislation and provides for solution to the problems which would be a creation of nobody else but members of society.â&#x20AC;&#x2122;â&#x20AC;&#x2122;

and Standards Authority of India (FSSAI). Residues of non-approved pesticides were detected in 1,180 vegetable samples collected from both retail and farm gate markets, 225 fruit samples, 732 spice samples, 30 rice samples and 43 pulses samples, it added.

he government in its test has found residues of pesticides in a significant number of vegetables, fruits, milk and other food items collected from various retail and wholesale outlets across the country. In fact samples collected from organic outlets were also found having residues of pesticides. The samples collected during 2014-15 have been analysed by 25 labs. Residues of unapproved pesticides were found in 12.50 per cent of the 20,618 samples collected nationally as part of the central scheme 'Monitoring of Pesticide Residues', which was launched in 2005. In lab findings, non-approved pesticides like acephate, bifenthrin, acetamiprid, triazofos, metalaxyl, malathion, acetamiprid, carbosulfan, profenofos and hexaconazole, among others, have been detected. According to the report released by the Agriculture Ministry, the residues of pesticides were detected in 18.7 per cent of the samples, while residues above MRL (maximum residue limit) were found in 543 samples (2.6 per cent). The MRL is being prescribed by the Food Safety

In vegetables, the ministry detected the residues of nonapproved pesticides such as acephate, bifenthrin, triazofos, acetamiprid, metalaxyl and malathion. In fruits, non-approved pesticides such as acephate, acetamiprid, carbosulfan, cypermethrin, profenofos, quinalphos and metalaxyl were found. Non-approved pesticides especially profenophos, metalaxyl and hexaconazole were found in rice, while residues of triazofos, metalaxyl, carbaryl and acephate were detected in pulses.

Associations of traders claiming to be in various food businesses, the Indian Hotel & Restaurant Association and the Mumbai Mewa Masala Merchants Association had moved the HC in 2012 to set aside provisions of the Food Safety Act. Without making clear the foundation of the challenge, the traders said the Act had "vague and excessive'' provisions affecting their business and could be prone to abuse.

Restaurant owners and others had filed a petition against the Act for being "violative of fundamental rights to equality, trade and life. But the HC bench

Finding no merit in the challenge, the high court said, "we cannot lose sight of the evil which is sought to be remedied by this Act...Humans have a tendency to deal in food products which would not be safe for human consumption."

ood Safety and Standards (FSS) Act is meant for the benefit of citizens and has a direct nexus to the right to life, observed the Bombay high court and thus has upheld the constitutional validity of the 2006 law, its provisions and the rules framed under it.

FSSAI to consider industry views while framing regulations for product approvals all stakeholders including industry, whosoever wants to give the views will be considered.

The ministry collected vegetables, fruits, spices, red chilli powder, curry leaves, rice, wheat, pulses, fish/marine, meat and egg, tea, milk and surface water from retail outlets, Agricultural Produce Marketing Committee (APMC) markets and organic outlets.

He added further that "nobody should be scared..there is nothing to fear."

ood safety watchdog FSSAI said they will consider industry views while framing regulations for product approvals, eradicating all apprehension. FSSAI had done away with process of product approvals following a Supreme Court order, which quashed the advisories issued by the authority. According to, FSSAI Chairman Ashish Bahuguna said, "We have started working on product approval regulations and will consider the views of

Beverages & Food Processing Times

In a circular last month, FSSAI has said that in the light of recent judgments of various courts relating to food safety, the regulator has decided to engage legal assistance for formulation of regulations to govern product approvals, imports. The regulator had scrapped the product approval system following Supreme Court order on August 19 quashing an advisory issued by FSSAI on the procedure for product approvals. The regulator had banned Nestle's instant noodles Maggi on June 5. However, it was later lifted by the Bombay High Court with the condition that manufacturing and selling would be allowed only after fresh tests.

Vol. 8, Issue 05 - October - 2015

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Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

BAVERAGE NEWS

Diet Pepsi rooting for a sweet spot

Coca-Cola introduces Fuze Tea in India because consumption of tea isn't restricted to seasons." The April-June quarter contributes as much as 40% to annual sales of carbonated soft drinks and both CocaCola and PepsiCo depend heavily on these three months to drive growth momentum through the year.

decline over the previous 52 weeks. Consumers often take to social media to express their thoughts about food and beverage products and changes, including Diet Pepsi, which has seen a ratio of negative to positive complaints at 6:1, as compared to the typical 4:1 ratio.

iet Pepsi hasn't found its sweet spot with consumers yet, as many have complained about the taste of the diet soda since PepsiCo changed the recipe to replace aspartame with sucralose. "All of PepsiCo’s diet soda sales fell 6.6% in the U.S. in the four weeks ended Sept. 19, as the new Diet Pepsi was rolling out and worse than the 5.7%

PepsiCo CEO Indra Nooyi, however, says it is still too early to judge how consumers are responding to the new recipe. "Our belief is that you’ve got to wait a few cycles to see what the purchase repeat adoption cycle is," said Ms.Nooyi. According to PepsiCo, surveys conducted during the new Diet Pepsi's testing phase showed that the No. 1 reason consumers stopped drinking diet soda was aspartame, which inspired the new formula.

Focusing on just soda is a thing of the past: Indra Nooyi

epsiCo reported a decrease in overall profits for its third quarter due to charges related to its Venezuelan business, falling to $533 million from $2.01 billion in the same quarter last year. Even with those charges, the company's quarterly revenue, which declined to $16.33 billion from $17.22 billion last year due to foreign currency headwinds, still beat Wall Street expectations, according to the Associated Press. Organic revenue increased by 7.4%. PepsiCo has boosted its earnings outlook for the year to an expected 9% increase this year, a full percentage point above its previous estimate. In its last earnings report released in July, the company had increased the outlook from 7% to 8%. Indra Nooyi, PepsiCo's CEO, noted the company

Industry observers think that Coca-Cola's move is an attempt to reduce the risk of its largely-aerated drinks portfolio and make its business less reliant on the seasons.

PepsiCo's ability to balance out foreign currencies that lowered the company's top line comes in part from lower overhead costs, which, along with other cost-cutting measures, helped increase gross margin for the 13th quarter in a row. Last week, PepsiCo announced more than $375 million in savings from its sustainability initiatives alone since 2010.

According to Devendra Chawla, group president, food & FMCG at Future Group, the "The launch of Fuze should lighten Coca-Cola's assortment. Not only does it reduce dependence on carbonated soft drinks, it also de-risks from seasonality

PepsiCo reported its North America snack volume increased by 0.5%, and sales for the segment saw a 2% uptick thanks to pricing. The snacking industry is growing considerably in the U.S., so it wouldn't be surprising to see the company have a renewed focus on these divisions. Even the company's North America drinks business enjoyed a 3% rise in volume, and increased pricing pushed up this segment's revenue as well, by 5% for the quarter. This segment includes products like Gatorade and Aquafina water as well as the company's soda products. Since increasing pricing last quarter, PepsiCo has seen revenue successes in both categories.

revolution in the food and beverage industry," PepsiCo CEO Indra Nooyi said. To adapt to consumers' growing desire to shop for their groceries online, PepsiCo has been "retooling the form, function, packaging, and fulfillment of its products" and "shifting its advertising dollars towards digital media and using e-commerce as a way to expand internationally."

The fruit juice-based Fuze tea will compete with Hindustan Unilever's Lipton ice tea, which is sold in a tie-up with Coke rival PepsiCo.

can't only focus on its signature product. "I think focusing on just (carbonated soft drinks) is a thing of the past," she said. Soda on the whole has seen sales fall for the tenth year in a row.

PepsiCo goes for e-commerce expansion with news leader

ood and beverage are projected to account for only 2.4% of the e-commerce retail market this year, but the category is growing by about 15% annually.

oca-Cola is expanding its portfolio of healthier drinks by launching its Fuze range of tea, a $1 billion global brand, in India in a move aimed at widening its portfolio of healthier beverages. This is the company's second launch in the country in two years, after introducing the nosugar drink — Coca-Cola Zero — last year.

PepsiCo has also been using Amazon as an avenue to test new products before conducting a wider expansion, including its stevia-sweetened

Erratic or excess rains can be a drag on sales growth, which has been in the low single digits through the last quarter. Fuze tea will be introduced in 250 ml pet bottles priced at Rs 30 each, a highmargin price point. A Coca-Cola spokesperson declined to comment on the launch. The first phase of the rollout will be in Bengaluru, Chennai and Hyderabad, followed by Goa and Delhi, an official aware of the developments said. The average per capita consumption of Coca-Cola beverages in the southern states is almost twice that of the national average of 14 bottles. Tamil Nadu, Andhra Pradesh and Karnataka will account for over Rs 8,000 crore in sales of non-alcoholic, ready-todrink beverages this year, according to industry estimates. The national market for these drinks is estimated at Rs 25,000 crore this year. Coca-Cola sells Georgia-branded tea in India through institutions and restaurants. Coca-Cola, which leads the soft drinks market in India, also sells juices under the Minute Maid brand and niche high-margin products including Schweppes tonic, ginger ale and soda.

PepsiCo introduces first use of Sweetmyx S617 from Senomyx concentrates that will be used in Manzanita Sol across the U.S. and in Mug Root Beer in two U.S. test markets. PepsiCo has exclusive rights to use the flavor in non-alcoholic beverages, while Firmenich has exclusive rights to use Sweetmyx S617 in foods and alcoholic beverages until March 2018.

Senomyx offers flavors and flavor boosters that increase sweet taste, create savory flavor, and block bitter flavors, The Company also produces cooling agents. Senomyx flavor ingredients have both Kosher and Halal certifications.

PepsiCo used the flavor booster to reformulate

The use of Sweetmyx S617 is part of a continuing trend of food and beverage companies reducing the sugar content of products in response to consumer demand.

epsiCo has created the first commercial use for Sweetmyx S617, a flavor booster from Senomyx. This flavor ingredient is intended to increase the sweet taste of foods and beverages that have been reformulated to reduce fructose, high fructose corn syrup (HFCS) and/or sugar content.

Deepak Jolly given new management role for promoting coca cola’s niche brand

serious leadership changes took place in Coca-Cola India with its Vice President Public Affairs & Communication Deepak Jolly given a new management role of promoting the company's growing portfolio of niche brands. Jolly has led the public affairs and communication function within the company for over 10 years.

To enter the e-commerce market PepsiCo has welcomed Gibu Thomas, Wal-Mart's former head of mobile and digital, who left Wal-Mart to help lead PepsiCo into the future of e-commerce.

Deepak Jolly, new responsibility will be of setting up a new function within the company, that will promote its growing range of niche brands within the franchise bottling territories.

"E-commerce is shaping up to be the next great

Jolly will start his role starting November 1, 2015

Beverages & Food Processing Times

and will continue to report to Coca-Cola PresidentIndia & Southwest Asia Venkatesh Kini. The premium brands of Coca-Cola are Schweppes Tonic, Schweppes Gingerale, Schweppes Soda and would soon launch Fuze Tea. Ishteyaque Amjad will replace Jolly as Vice President, Corporate Affairs, of coca cola, India Amjad, was previously working as Director Corporate Affairs for Cargill in Singapore. He has also served in the Indian Army and is an alumnus of the Indian Military Academy, Dehradun.

Vol. 8, Issue 05 -October - 2015

Electronics Devices Worldwide Pvt. Ltd.

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

AGRIBUSINESS NEWS

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

Innovations in Food Business: Manisha Mani+, Alka Vasan, and S.K. Sethi CCS Haryana Agricultural University, Hisar, India 1.Introduction

www.agronfoodprocessing.com

Vol. 8, Issue 05, October 2015,

100/-

ce cream is loved by everyone! This is the realization and a need for a representative body lead to the innovation of ‘Indian Ice Cream Manufacturers Association’ IICMA– an apex body of ice cream manufacturers in India working for the benefit of the ice cream industry. I am an active member of this association and very proud of what has been accomplished in the segment of ice cream due to the hard work put in by IICMA’s members.

n developing countries like India, the base for agricultural growth is due to its agricultural research and innovation. This paper focuses majorily on research and innovation through the involvement of private hands along with the public sector organizations into the agribusiness by way of making big investments which are extremely

percent (data reported in Fuglie 2010). In the last two decades —that is, since 1991 — milk production has almost doubled, and egg production has increased by 150 percent (see Table 1). Within the crop sector, fruit and vegetable production has increased more rapidly than that of food grains (Singh and Pal 2010). Increases in per capita income shifted consumption from basic food grains to higher-quality and higher-

important to farmers and also throws light on the Indian policies that influence research and in novation. Both domestically and globally, the rising demand for agricultural products is leading to rising prices to the heights which were never recorded before. Concurrently the resources to fulfill these demands are either growing at slower rates or at some places, even declining. Equally worrisome, productivity growth of major food crops is leveling off (Singh and Pal 2010). All these trends generate demand for innovations to increase productivity. Indian public-sector research, international agricultural research centers, and foreign public and private research provide a flow of new technology. Increasingly, private agribusinesses in India have been playing an important role —accessing and introducing available technology, and advancing what is Available with further research. Since mid-1990s, Indian industrial and agricultural policies have changed dramatically, and the private sector has led the way for rapid economic growth in the Indian economy as a whole over the past decade. The major objectives of this paper include: (1) quantification of agribusiness innovation and research in India and (2) providing information on the economic, environmental, and povertyreduction impacts of agribusiness innovation. 2. Changes in Indian Agricultur Innovations in agricultural technology and educating the farmers have greatly contributed to increases in agricultural productivity in India, with agricultural production rising at an annual rate of around 2.68 percent a year from 1961 to 2007 (Fig. 1). During the 1980s, growth rose to 3.49 percent but then sank to the long-run average of 2.69 percent for the latest period, 2000–2007. For the entire period of nearly 50 years, increased inputs (land, fertilizer, labor, machinery) accounted for 53 percent of increased output, with total factor productivity (TFP) contributing the rest. Input growth accounted for all growth in the 1960s and for 70 percent of growth in the early Green Revolution period (the 1970s). In recent years, the contribution of TFP has also increased. In the period 2000 –2007, TFP growth accounted for 74 percent of output growth in agriculture while increased use of inputs accounted for only 26

value foods, such as animal protein, fruits, and vegetables. Increasing income has also led to increased demand for environmental services such as clean air and water and reduced greenhouse gas emissions, leading in turn to demands for organic food and biofuels. Farmers have also increased their use of modern inputs (see Table 2). From 1991 to 2006, fertilizer use almost doubled, use of tractors and quality seed tripled, and irrigation from tube wells has expanded substantially (the share of tube wells in irrigated area increased by 5 percent, while total irrigated area increased by 26 percent, from 66 to 83 million hectares). 3. Innovations in Indian Agriculture Agribusiness companies want to use innovation to capture or protect market shares by offering new products that buyers want (product innovations) and also by cutting costs (process innovations). In agriculture as in other economic sectors, advanced countries take advantage of technology developed in other countries, using a variety of procedures—such as licensing, buying, or simply copying—to access what others develop. When suitable technology is not readily available and identifiable, or when companies see an opportunity to improve what is available, they will invest in research to identify or develop product and process innovations. Both for national agricultural growth and for agribusiness success, innovations and their spread are the goals. R&D is one of the costs of innovation. This section considers the rate of innovation in Indian agriculture as well as the sources of innovation. Section 3 considers private agribusiness expenditures and staff for in-country R&D. Quantitative information on innovation is limited. To measure innovation, we used three primary sources: (1) registration of new technology, which Indian technology regulators require for many industries; (2) data on intellectual property rights, that is, patents and plant variety protection certificates; (3) supplementary data that we collected through interviews with leaders of about 100 private agribusinesses and from press articles. Almost all new active ingredients were developed outside India, but at the beginning of 2011, Dow

IICMA for the past four years has been successfully organizing the event, Indian Ice Cream Congress & Expo and this year it was held in Bangalore as the Indian Ice Cream Congress & Expo 2015.Cumulatively around 800 national and international Ice Cream manufacturers participated in this distinguished event. The Show was inaugurated by R V Deshpane, Minister of Large & Medium Scale Industry & Tourism, Govt of Karnataka, who endured that Karnataka had huge potential for ice creams was exultant to see that IICMA doing fantastic work for the development of ice cream market in India. Due to IICMA’s untiring efforts, the per capita consumption of ice creams has increased from 300MlL to 400 ML in the last 5 years. Now the association is planning to launch National Ice Cream Day from next year onwards and every second Sunday of April month will be celebrated as National Ice Cream Day of India. This is on the lines of America where they celebrate national ice cream day and have achieved huge success among masses. Apart from ice cream, the only think I like better than talking about Food is eating. And my family loves to eat street food. Believe me, India houses some delectable and great street food of all time-Gol gappas, chat papri, Alu tikki, pao bhaji, vada pao, momos…….the list is endless. Thousands of Indian daily devour on the street foods and don’t be surprised as they taste real good. But the main issue lies with safety - food safety! My kids usually insist on going out for having all kinds of chats and street food, but I still dread taking them as we all know how hygienically street food are unsafe. The water they use, the oil for frying, the spices, and utensils used all are usually of low grade or are real cheap. God has answered the prayers of all those people who wanted to eat street food but avoided due to lack of food safety. AsCII along with its National partners Cargill, VOICE and NASVI havelaunched a National Campaign called, Surakshit Khadya Abhiyan. The campaign will provide safe and hygienic food for all, jointly. The idea is to engage all stakeholders to catalyze sensitization and capacity building on food safety among consumers, street food vendors and the industry to deliver safe food of global standards and boost domestic trade and export. The objectives of Surakshit Khadya Abhiyan will be to enhance Consumer Awareness on Food Safety aspects like Labels, Storage conditions and related hygienic practices. Widespread awareness would be strengthened among Street Food Vendors, Schools and Colleges. The target is to adopt 100 food streets across the country, build awareness on food safety among 10000 consumers and build capacity on Good Hygiene and Manufacturing Practices by training employees of 300 SMEs towards food safety. I can glimpse the time when we all will be able to hog street foods without fear and anxiety. Well with all the development and high income demography, the Indian food and beverage industry is enhancing and expanding with the entry of 72.5 million households in the USD 5,000-10,000 (Rs 3-6 lakh) income bracket over next 5 years, but regulatory hurdles may hold back MNC investments in the sector. Consumer dynamics are very favourable in India over the next five years, as more households enter the middle class and urbanisation accelerates. This will drive expansion of the food and drink industry. However regulatory hurdles would hold back multinational investment. In addition to a weak infrastructure network, India suffers from burdensome administrative procedures, a complex taxation framework and regulatory hurdles and will create complexity for food and drink companies. The food and beverage industry of India is rising beyond expectation, hopefully the “Make in India’’ campaign adds up its value and develops it further. I am keeping my fingers crossed. Rest is next!

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

AGRIBUSINESS NEWS

-The Agribusiness and Entrepreneurship Perspective

fungicides and insecticides. Innovations by local pesticide companies have largely been new, lowcost ways of producing generic pesticides and new formulations of pesticides. In addition, a number of firms have developed biopesticides. The agricultural processing and plantation sectors have introduced innovations for farmers and for consumers. The plantation crop sector has introduced new clones of tea and coffee, and new management practices. The sugar industry has new management practices and some new sugarcane varieties, and has started to produce electricity and biofuels. The biofuel industry has developed innovations such as new crops (tropical sugar beets, for example) and improved biofuels machinery, but with very limited adoption in India. ndia also has become a global R&D center for food and beverages for many multinational corporations (MNCs), considering the size of the market in south Asia. Innovations from Indian R&D labs are mainly in the form of value-added products and supply chain management techniques. 3.1 Quantitative Data on Trends in Innovation One measure of innovation in the seed industry is the number of cultivars the Department of Agriculture notified or recognized as new cultivars during various periods. This is an incomplete measure of innovation because notification is not required except for cultivars from public breeding. Government allows private companies to introduce cultivars without notification, which companies have preferred, and so only few private cultivars have been notified. Even with this partial measure, the rate of innovation holds steady from the 1980s to the 1990s but then grows rapidly after 1999 Notes: * Truthfully labelled varieties collected from individual firms’ websites and survey (34 firm) Another important area of innovation that can be quantified is the number of biotech genes (also known as events) and transgenic cotton hybrids. Transgenic cotton hybrids and new genes must be registered with the biosafety authority, and the rapid growth in numbers of hybrids and genes registered. The first transgenic hybrids of cotton containing the Bt1 gene were approved in 2002. The number of transgenic hybrids containing the Bt gene increased exponentially after 2005. The private sector has developed nearly all of these hybrids. In 2002 the first Bt gene was approved for commercialization and marketed through the joint venture Mahyco-Monsanto Biotech (MMB). In 2006, new Bt genes began appearing. In May 2006, Monsanto and Mahyco produced hybrids with stacked Bt genes, Bollgard-II (BG II). In the same year, two domestic seed companies, JK Agri Genetics and Nath Seeds, had new Bt genes approved for commercialization. The JK Bt was based on an Indian public-sector Bt gene, and the Nath Bt was licensed from a Chinese firm. In 2008 and 2009, two new Bt events were approved. The first was developed by Metahelix and the second by the University of Agricultural Siences Dharwad (UAS Dharwad) Bt stands for Bacillus thuringiensis, a bacterium that is the source of the gene that makes this cotton poisonous to certain insects but not to other insects or mammal 3.2 Sources of Innovation The innovations discussed above have come from government research programs, Indian

firms’ research, and foreign research. Publicsector research programs continue to make important contributions to the development of new varieties of self-pollinated crops like rice, wheat, many pulses, and oilseeds; improved dairy breeds and veterinary vaccines; and innovations in crop, pest, and resource management. In the past, Indian firms licensed or copied agricultural innovations based on foreign technology, or foreign MNCs transferred technologies to their subsidiaries in the agricultural chemicals, tractors, and vegetable seeds industries. For example, in February 2006 UPL bought Advanta, a Netherlands-based multinational seed company, and moved its headquarters from Europe to India. Indian firms and subsidiaries of MNCs based in India are now becoming important innovators in other countries by exporting technology developed in India. Hybrid rice cultivars are being exported to Bangladesh and Southeast Asia. Indian small tractors are being exported to the United States, Africa, and elsewhere. Generic pesticides are exported around the world. Indian biopesticides based on neem are being exported to Europe, the United States, and Asia.

Sources: MoA ,2010; truthfully labelled varieties collected from individual firms’ websites and survey (34 firms). Notes: a Includes only actual hybrids released by the private sector (not open-pollinated varieties). b Includes open-pollinated varieties (mostly), 48 of which are hybrids. 3.3 Trends in Aggregate R&D Private agricultural R&D expenditure in India has increased from US$54 million3 in 1994/95 to $251 million in 2008/09 (Table 5). In the 1990s, private research made up about 17 percent of the total agricultural R&D in India. This has risen to a current 27–31 percent. Table 5 compares privateand public-sector research expenditure, indicating that although private research has increased more rapidly, public research expenditure still outstrips private. Notes: c The public-sector investment figures for 2008/09 are projected from ASTI’s (2011)) last survey estimates of Indian public research in millions of 2005 US dollars. ASTI calculated 6.4 percent growth in public-sector investment between 1981 and 2003, and 2.9 percent growth between 2000 and 2003. To calculate the first numbers in column 3, we used the 2000–2003 period growth rates of 2.9 percent for public agricultural investment and projected for 2008/09 to compute the share of public-sector R&D investment in total R&D investment. To calculate the second numbers in column 3 we used the 1981–2003 period growth rate of 6.4 percent for public agricultural investment and projected for 2008/09 to compute the share of the public sector in total investment. 3.4 Food, Beverage, Tobacco, and Plantations,

and the Biofuel Industrie Over the last two decades, R&D in the food industry has grown from about $14 million to $27 million. Biofuel has grown from zero in 2000 to $13 million in 2008. Sugar industry R&D has grown slowly with the exception of Shree Renuka, whose R&D accounts for most of the growth in sugar R&D between the mid -1990s and the present. Current levels and growth in agricultural processing R&D may be underestimated because some of the largest food companies, such as Ruchi Soya Industries, do not publish R&D expenditures in annual reports. Agricultural processing industries conduct research to develop agricultural technologies and new food products, and to increase processing efficiency. Processing firms may also conduct agricultural research to improve crop quality or reduce production costs if they control land and produce crops, as tea and coffee companies do, or hold a monopsony position, as ITC does in tobacco and eucalyptus. In India, ITC controls about 90 percent of cigarette sales, buys most cigarette tobacco, and maintains a major research program to develop tobacco varieties and management practices that reduce production costs for contract farmers and increase leaf quality. In addition, ITC is also the largest producer of paper and pulp in India and has a large research program to improve the productivity of eucalyptus production. Finally, ITC is an important part of the food industry and does product and process research for that component of the corporation. Major companies that own tea and coffee plantations are Tata Tea, Hindustan Unilever (HUL), and Goodricke Tea. All are conducting research to produce better clones and crop management practices, and investing in developing new consumer products such as nutritionally enhanced tea (HUL), flavored teas (Tata), and instant teas that dissolve in cold water (Goodricke). 4. The Future: Lessons, Changing Agribusiness & Policy Implicatio Lessons The study shows that agricultural innovations in India have dramatically increased since the 1980s. Quantitative data show that between the 1990s and first decade of this century, the number of new seed cultivars registered in maize, wheat, and rice grew by at least 60 percent and probably doubled if private hybrids that were not registered are taken into account. Qualitative evidence suggests similar growth in innovations in the agricultural machinery, food processing, veterinary medicine, and agricultural processing industries. Indian agribusiness laboratories and experiment stations account for much of this growth although the public sector still dominates innovation in plant varieties of important crops such as rice and wheat. Growth in private R&D was particularly dramatic in the seed and plant biotech industry, which grew more than tenfold between the mid-1990s and 2009. There was also very rapid growth in agricultural machinery, processing technologies, animal health, sugar, and biofuel. Pesticides; food, beverages, and plantations; and animal breeding and feed grew less rapidly—only doubling their real R&D. Multinational corporations made important contributions to the expansion of research in India in the seed, biotech, pesticide, agricultural machinery, and processing

Beverages & Food Processing Times

industries. Private innovation and research has also helped pull people out of poverty by providing more rural employment and increasing production of small farmers in some of the poorest regions of India. This dramatic growth in private-sector R&D and innovation appears to have five major causes: 1. Market demand. First, a major increase in demand for agricultural goods in India and around the globe has been reflected in higher prices for agricultural products and the modern agricultural inputs that agribusiness provides. 2. Policy liberalization. The second factor in increased private research and innovation is liberalization of policies governing investment in agriculture and agribusiness by large Indian corporations, business houses, and foreign firms. Liberalization of import and export policies governing agricultural inputs and products also contributed to growth of innovation and R&D. Liberalization began gradually in the late 1980s and accelerated in the 1990s. 3. Advances in basic science and engineering. The third factor that was particularly important for industries in which R&D growth was faster than sales growth (seed, biotech, and veterinary medicine) is advances in the basic sciences and engineering that form the basis for private technology development. 4. Intellectual property rights. The strengthening of intellectual property rights (IPRs) is probably not as important as the first three causes of growth, but it has provided greater incentives for innovation and encouraged growth of research in biotech and veterinary medicine. 5. Government investment in research and education. Finally, the Indian government’s investment in agricultural research and higher education, along with research conducted within international agricultural research centers, provided the foundation for many developments and achievements in private R&D. . 5. Conclusion If central and state governments in India wish to encourage more research investment, it can consider the points discussed here. Firstly, both central and state governments need to have clear, less time-consuming, and relatively inexpensive regulatory approval paths for new technologies such as fertilizers, biotech plants, and crop protection chemicals. Secondly, the number of state agricultural universities (SAUs) and the students they produce have increased; however, the number of scientists at SAUs has declined, along with research funding per scientist (Jha and Kumar 2006; Singh 2000). Drastic reforms and more resources are needed in graduate education and research at SAUs to train the young scientists that private firms are asking for. Thirdly, Patent laws and plant variety protection now in peration must be enforced by the courts and state governments. Fourthly, subsidies and special export zones to develop agricultural products and inputs to compete in export markets may also be an effective use of public funds and lastly, the government agencies should consider incentives for firms to develop technologies that improve health and the rural environment.

Vol. 8, Issue 05 - October - 2015

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Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

FOODPROCESSING NEWS

Maharashtra Industrial Development Corporation (MIDC) gives nod to Food Processing unit at Wine Park Industries & Exporters' Association, said, "The state government had introduced wine policy in 2001, which was vague with only three pages only. Actually, the wine policy should be updated after every five years. However, the state government has not prepared a new policy even after 15 years. This was the major reason the wine park could not develop. The industries are unable to expand their existing units in Nashik due to scarcity of land. Hence, the industrialists had asked the government to allow food processing industries in the wine park."

aharashtra Industrial Development Corporation (MIDC) has finally given its approval allowing food processing industries to set up their units in Godavari Wine Park at Vinchur, around 60km from here. The Godavari Wine Park, which was set up in 2001 for wineries only, is spread over 133 hectares (332 acres) of which around 83 hectares have been developed there. Around five wineries are operational there at present. The MIDC is now developing third phase of Godavari Wine Park on the remaining 50 hectares (125 acres). Ramesh Pawar, president of Nashik District

Pawar further added,"The MIDC's decision is really good and will attract food processing industries to set up their units there. There is huge scope for industries involved in raisin and tomato processing, onion dehydration, chilli powder and grape juice among others." As per the statistics provided by the Nashik divisional office of the excise department of the state government, the district recorded wine sales of 2.04 lakh litres by August 31 during the current financial year, against 1.90 lakh litres during the corresponding period in 2014-15. Sales in August have increased by 10% to 38,638 litres, as against the sale of 35,169 litres in August 2014-15. In 2014-15, the wine sales in the district had increased marginally to 5.08 lakh litres during the financial year 2014-15 against 5.07 lakh litres during 2013-14.

Nestle India ends 12-year Maggi manufacturing contract with SAJ Food Products the company has invested in capacity expansion of its own facilities, in order to cut down reliance on third party manufacturers. "This is because we have started utilising the production capacities and manufacturing facilities in our own factories post investments made in Nanjangud and Tahliwal," the company spokeswoman added.

estle has ended its 12-year contract with the lone third party producer of Maggi noodles, Kolkata-based SAJ Food Products. This move is seen as an effort by Nestle to focus on quality following the ban imposed by the Indian food safety regulator over safety concerns. A Nestle spokeswoman said that, "As part of a standard process, where we review our overall capacity every two years on the basis of volume projections, we took the decision to bring the comanufacturing with SAJ to an end." Nestle stated that the contract is being ended as

SAJ Food Products' group firm Aparna Agency will continue to serve as Nestlé’s distributor, as it has for over two decades.

lowered yield in India. Consequently, India's overall cereal output is estimated to be lower by 1.8% at 234.1 million tonnes in 2015, the second year of consecutive decline, from 243.2 million tonnes and 238.4 million tonnes in 2013 and 2014 respectively. India's 2015 wheat crop is estimated to decline by 5% (5 million tonnes) from the 2014 record due to crop damage caused by heavy rains, strong winds and hail."

slump in energy prices and concerns over economic slowdown in China has affected the Global agri commodities prices which fell sharply to hit seven-year low in August due to ample supplies. Food and Agricultural Organisation (FAO) of the United Nations measured that, the food price index averaged 155.7 points in August 2015, down 5.2% from July, the sharpest monthly drop since December 2008, with almost all major food commodities registering marked dips. The trade-weighted FAO Food Price Index tracks international market prices for five major food commodity groups: cereals, meat, dairy products, vegetable oils and sugar. Triggered by a bumper output in 2015, global cereal price index averaged 154.9 points in August, down 7% from July and 15.1% from last year - a decline driven by falling wheat and maize prices that reversed two consecutive months of modest increases. Continued improvements in production prospects for 2015-16 were largely behind the cereal price slides. Global cereal production in 2015 at 2540 million tonnes, 13.8 million tonnes more than expected in July, but still 21 million tonnes (0.8%) below the 2014 record. The upward revision resulted from more buoyant production prospects for coarse grains, wheat and rice across the world, estimates FAO. The FAO study further said that the "Unfavorable weather condition in the winter harvesting season

Food Analyst to the Government of Assam. The food analyst further added that the oil coating had potential deleterious effect on human health on being consumed. The Commissioner of Food Safety, Assam has directed the designated Food Safety Officers in the districts to strictly enforce this prohibition immediately.

India's overall rice output is expected to remain higher at 103.5 million tonnes, 0.9% more than the disappointing figure of last year, despite concerns about the possible incidence of planting delays. But, India's overall export of foodgrains is estimated to be lower due to a tightening of supplies and growing domestic requirements. FAO estimates India's rice shipment to be lower by 20% in 2015. For now, the vegetable oil price index averaged 134.9 points in August, down 8.6% from July, and its lowest level since March 2009. The fall primarily reflected a six-and-a-half year low in international palm oil prices, mainly the result of slowing import demand, notably by India and China, amid expectations of rising production. Also, a large drop in prices for milk powders, cheese and butter pushed the August dairy price index down by 9.1% to 135.5 points, with much of the weakness attributed to softening import demand from China, the Near East and North Africa. A sharp fall in the sugar price index down by 10% from July to an average of 163.2 points in August - was largely the result of the continued depreciation of the Brazilian Real against the US Dollar and firmer expectations that India, the world's second largest sugar producer, will become a net exporter in the current 2015-16 season. Falling energy price has helped reduced overall transportation cost in the last one year. The benchmark brent crude oil price fell by 50% to the low of $40 a barrel on August 24 and rebounded thereafter to trade at $49 a barrel.

US burger chain Wendy kicking off home delivery to beat slowdown

SAJ Food Products chairman KD Paul told the publication: "We have gained a lot of insights in terms of quality control and best practices from Nestle as their contract manufacturer and the relationship will continue now as their distributor." Nestlé’s latest move indicates that it intends to have complete control over the manufacturing process of the noodles, and not depend on contract manufacturers as it plans to relaunch the noodles into the Indian market by the end of this year.

Assam government prohibitssale of Masur Dal (lentil) manufactured by R S Triveni Foods

ith immediate effect the Assam government has banned storage, distribution and sale of Masur Dal (lentil) manufactured and packed by R S Triveni Foods Pvt Ltd, Delhi for a period of six months. The Masur Dal samples were coated with oily substance, which was declared unsafe as per the Food Safety and Standards Act, 2006, found the

Global Food prices fell sharply to hit seven-year low in August

he world's third largest US burger chain Wendy's is going for home delivery to reduce the continued slowdown in consumption with people eating western style fast food less outside, and capture the set of consumers shopping more through mobile apps than through in physical stores. Wendy's doesn't do home delivery in its biggest market: the US. India is only the third market for the burger giant after Dubai and Manila to start home delivery. Wendy's online ordering is being serviced through online restaurant search service Zomato and delivery partner ShadowFax.

Beverages & Food Processing Times

Besides convenience, which most quick service chains are now selling through mobile apps, scores of hyper local independent mobile food delivery apps and marketplaces which are selling across cuisines and discounts? In large Asian markets like China, the battle for the share of stomach has increasingly been fought on apps and app-based startups, which has forced companies like McDonald's and KFC to accelerate their app-based delivery services as well. Annual sales of fooddelivery apps are expected to cross $20 billion in China in 2015, according to industry estimates. Such moves are also aimed at steering weekday sales, which typically tend to spike during weekends. The struggling western style fast food industry has been lowering prices to attract in-store footfalls. Yum Restaurants-owned Pizza Hut has initiated a 'magic menu' starting Rs 25, while Domino's and McDonald's too are now operating in the Rs 30plus range.

Vol. 8, Issue 05 - October -2015

NEWS

MB Sugar introduces FONDANT ICING SUGAR

B offers the largest range of Specialty Sugar like Double Refined Breakfast Sugar, Castor Sugar, Demerara Sugar, Light Brown Sugar, Rainbow Sugar, Icing Sugar, and low calorie sweetener Calcon (Sucralose). All MB products are Kosher & Halal certified. Now for the first time in India, MB introduces FONDANT ICING SUGAR. Fondant Icing Sugar is a free flowing, super fine, white powder which is very easy to dissolve in water with no lumps. It is finer than regular icing sugar. MB Fondant Icing Sugar is perfect for giving a soft and glossy finish to sponge cake, French fancies and it is also excellent for sugar modeling. It is ideal for making cream centers, caramels, cordials, fudge, and glazes. For industrial food manufacturing, fondant icing sugar is used in products including icings, sauces, frostings, coatings, beverages,Chocolates, decoration etc and numerous baking applications, especially because it can dissolve quickly. MB Fondant icing sugar is available in various grades of fineness (3x, 6x, 10X, 12x) ranging from 100 to 325 mesh. It can be customized to suit the needs of the buyer. The more X's, the more finely powdered the sugar is. Use MB Fondant Icing Sugar in your preparations for a smoother, glossier, soft finish. Calcon (Sucralose) For calorie conscious and diabetic people, MB offers a healthier alternative to sugar. MB Calcon contains sucralose which is a new molecule made from sugar but has no calories. It is an ideal low calorie substitute which gives you taste of sugar without any calories. It can be used in tea, coffee, juices as well as in preparation of various Indian sweets & desserts. So enjoy the sweetness. Donâ&#x20AC;&#x2122;t worry about the calories and remain healthy & fit. Light Brown Sugar MB light brown sugar is the most natural form of sugar. It is hygienically manufactured, free flowing, rich in iron, calcium & other mineral salts. It is free from any colour or chemical. It is ideal for daily home consumption in tea, coffee, icecreams etc. It can be also used in brown biscuits, cookies, cakes, pastries, brown sweets like gajak, etc SUGAR Ideal for giving a soft and glossy finish to sponge cakes, French fancies and is also excellent for sugar-mo.

www.agronfoodprocessing.com

Beverages & Food Processing Times

Vol. 8, Issue 05 - October -2015

CORPORATE NEWS

Mars launched superpremium pet Food brand Eukanuba in India

Kellogg acquires Egyptian cereal maker Mass Food Group and employing 600 people. The company owns popular local brands such as Temmy's cereals and NutriFit cereal bars, and exports to more than 30 markets, spanning across Europe, East Asia and Africa.

Natura brands from Procter and Gamble (P&G) in July 2014. As part of the acquisition, for geographies including Latin America, North America, the AsiaPacific region and some parts of Europe, P&G's seven facilities that manufacture the three brands also came into Mars' fold. Nitin Kulkarni, director (corporate affairs), Mars India, said Eukanuba, along with the Pedigree range of products, was being manufactured at Mars' 30,000-tonne-a-year capacity facility located on the outskirts of Hyderabad. This facility ould cater to the Indian market, as well as neighboring markets like Nepal, Bhutan, Bangladesh and Sri Lanka. Kulkarni said Eukanuba was being positioned as a specialised brand in India, where the superpremium pet foods category was growing at a compound annual growth rate (CAGR) of 20%.

S-based Mars Inc, a $32-billion manufacturer and marketer of confectionery, food products and international pet food brands like Pedigree and Whiskas,launched its super-premium pet food brand Eukanuba in India. Family-owned Mars had completed the $2.9-billion acquisition of Eukanuba, IAMS and

"The pet foods market is estimated to have a potential of $1 billion in India, of which the superpremium category accounts for roughly 40%," he said. Stating that Mars was currently sharpening its focus on establishing the Eukanuba brand in India, he said the company would launch its IAMS and Natura brands in the country in two to three years down the line.

Nestle claims to be "singled out" by the government in the Maggi noodles ban case

ellogg has acquired Egyptian cereal maker Mass Food Group for $50m, as part of its growth strategy to tap emerging markets.

Kellogg Europe president Chris Hood said: "As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg. "The combination of Mass Food Group's manufacturing capabilities, established local brands, and sales and distribution infrastructure, coupled with Kellogg's product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa." "I would like to say how proud we are to have been acquired by Kellogg Company, the world's leading cereal producer." Mass Food Group is a family-owned business that was founded in 1996 based in Cairo. It has grown into a leading player, commanding $18m in sales

The company also sought to recall an earlier order of the National Consumer Disputes Redressal Commission (NCDRC) by which it had admitted government's Rs 640 crore suits against the noodles manufacturer for alleged unfair trade practices and other charges. A bench, headed by Justice V K Jain, issued notice to the government on the company's plea and sought response by October 8. It also issued notice to Nestle on a separate plea filed by the government seeking

On August 17, NCDRC had issued notice to Nestle on the government's suit to which the company had to reply. However, the company failed to reply to the notice claiming that it has not received complete documents from the government to which it had to file its reply.

"We are building a strong foundation for emerging market growth." The transaction is not likely to leave a material impact on Kellogg Company's annual operating profit and net earnings in the 2015 fiscal year. Kellogg has made several acquisitions in 2015. The company bought Egypt's leading biscuit company Bisco Misr; formed a joint-venture with Tolaram Africa to develop snacks and breakfast foods for the West African market; and acquired a 50% stake in Multipro, a sales and distribution company in Nigeria and Ghana.

new company has a combined value of Autogrill's international expertise and experience and Lite Bite Foods' extensive local market, cuisine knowledge and network of established outlets, and the expansion will be funded through internal accruals.

The company opposed the government's suit saying that due to the ban, around 9,000 vendors and 10,000 suppliers were rendered unemployed and it has suffered a loss of nearly Rs 250 crore.

estle India Limited, alleged to the apex consumer commission that it was being "singled out" by the government in the Maggi noodles ban case as no action was being taken against other manufacturers of similar products.

Kellogg Company chairman and CEO John Bryant said: "Today's announcement builds upon significant progress against our emerging market growth strategy announced earlier this year."

With Investment of Rs 100 crore Lite Bite Foods go into joint venture with HMSHost at travel destination

further testing of Maggi noodles.

Senior advocate Arvind Nigam said on behalf of the company said "It has caused a huge damage to our reputation... to the extent that my competitors are making fun of me (company). While my product has been banned, government is not taking any action against any manufacturer of similar products... I am being singled out."

Mass Food Group vice-president Tamer El Bahay said: "On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world's leading cereal producer. With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers.

isualizing an investment of around Rs 100 crore in next three to four years, Food and beverages retail firm Lite Bite Foods has formed a joint venture with HMSHost for operating outlets at travel destinations across India. The JV will emphasis on developing travel retail destinations and will open outlets at airports, railway stations and highways across the country, and will be named as 'Lite Bite Foods HMSHost. Lite Bite Foods Chairman Amit Burman said, while HMSHost will look into the operations side and bring suitable global brands, Lite Bite Foods will take care of business development for the joint venture, he added. HMSHost holds 51 per cent stake in the JV, while the rest 49 per cent will be with Lite Bite Food. Burman also added that the

Beverages & Food Processing Times

HMSHost International CEO Walter Seib said,"This partnership is an important step forward in the strategy of expansion in emerging markets, especially in Asia, which the Group has been adopting in recent years". The JV is targeting revenues of around Rs 500 crore in next four to five years," he added. Lite Bite Foods has over nine core brands under its umbrella and has over 86 operational outlets. HMSHost is part of Autogrill S.p.A. - one of the largest provider globally of food and beverage services for travellers.

Vol. 8, Issue 05 - October - 2015

FOOD INGREDIENT NEWS

Kamani Oil Industries to be the first Indian Edible Oil firm to get FDA license developed in house by the company. The company produces a range of culinary oils like rice bran, sunflower, groundnut, coconut and supplies bulk edible oils to bakery, nutrition, and confectionery industries as well.

One taste will convince you that our frozen treats are every bit as delicious as they look HIGHLY PROFITABLE Compared to ready-to-use alternatives, dry mixes cost less to buy, ship and serve-helping you make more money SUPER CONVENIENT With a 12-month shelf life and shelf-stable storage, our dry mixes virtually eliminate product waste. plus they don’t take up valuable space in your cooler or freezer DELICIOUSLY SIMPLE Fast and easy prep means you get fresh product when you want it. And teaste is consistently rich and creamy. SOMTHING FOR EVERYONE With many products that are free of lactose, gluten, cholesterol and dairy, artiﬁcial colourings & preservatives, tou can serve more customers then ever. EXTREMELY VERSATILE Easily offer seasonal favorites, a ﬂavor of the week or personalized treats to encourage repeat visitors.

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amani Oil Industries are the first Indian vegetable oil company to get a FDA drug license for manufacture of pharmaceutical grade oils and fats (IP/BP/USP/NF). This certification will assure the customers about the integrity of their manufacturing process as well as compliance with the stringent FDA regulations. At its Khopoli plant near Mumbai the company has the capacity to produce 100 tonne per month at. The manufacturing facility at Khopoli now meets with the requirements of Schedule M of Drugs and Cosmetics Act, 1940. The overall pharmaceutical grade oils and fats market size is about 1,500 tonne a year.

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Kamni Oil Director Prakash Chawla said, "Earlier, the pharmaceutical companies used to import the oils and fats. Now they will have an option in the country itself," adding the technology used for this segment has been

Beverages & Food Processing Times

Chawla said this foray though does not show any major jump in our topline. But, we will be the pioneer in this segment by being the only one to get the FDA approval. Looking at the growth chart, overall, including our consumer and institutional business, we are expecting 20 per cent increase in revenue in the next three years." Looking at the growth the company is also expanding its overall capacity at its Khopoli plant to 800 tonne per day from the current 500 tonne in the next one year and has invested Rs 50 crore for this purpose.

Vol. 8, Issue 05 - October - 2015

FOOD PROCESSING MACHINERY NEWS

Advanced Food Processing technology from HRS PSL showcased at International FoodTec India 2015, New Delhi

RS Process Systems Ltd. (HRS PSL), part of HRS Group, UK participated in the 10th International FoodTec India 2015 from 14th- 16th Sept, 2015 at Pragati Maidan, New Delhi. The company emphasized the role of innovative technology for food processing while displaying the latest additions to the product range, HRS Monobloc Sterilizer and UHT Sterilizer. HRS Monobloc Sterilizer is used for processing of various pulpy products like Mango, Guava and Tomato. This was developed with a thorough understanding of seasonal fruit availability, heat sensitive product processing and retaining natural flavor and taste. This system allows integration with pre-heaters, pasteurizers and is designed to process upto 12,000 kg per hour of fruit pulp/ puree concentrate of high viscosity and comes with aseptic filler for bag-in-drum filling mechanism. UHT Sterilizer, developed specifically for dairy & beverage applications, is based on the principle of ultra heat treatment sterilization. The system ensures desired heating cooling temperatures, product holding times and enables further input to desired packaging line. UHT treatment to products can give increased shelf life at ambient temperature when aseptically packed. Both products have received a very good response and owing to their superior technology have generated interest with well known multinational and Indian food companies including Varun Beverages, Parle Agro, Schreiber, Jadli Foods, Leon foods, and many more. "Cutting edge technology will play a dominant role in ensuring high quality standards for the

end product and reduced cost of production. HRS has established its credibility through process engineering in critical application areas in viscous pulpy products, particulates and dices, beverages, prepared food, infant food, nutraceutical and probiotic substitutes. For more than a decade now, our tailor-made solutions and service support have uniquely positioned us as a preferred partner for food processing industry customers.", said Mr. V Gokuldas, Managing Director, HRS Process Systems Ltd. The total food production in India is likely to double in the next 10 years with the country’s domestic food market estimated to reach US$ 258 billion by 2015. The Indian food processing industry accounts for 14 % of manufacturing GDP, 13 % of India’s exports and 6% of total industrial investment. To engage with a wider spectrum of the industry at the 10th edition of International FoodTec 2015, HRS exhibited its latest technology in food processing sector. Solutions for processing of fruit pulp, purees, concentrates, beverages, prepared food, special milk based products, nutraceuticals and probiotics were highlighted. There was also a good response and interest for HRS’ products like the Ecoflux* Corrugated Tube Heat Exchanger, HRS Funke Plate Heat Exchanger and systems from esteemed snack food industry companies such as Haldiram, Bikaji, Flavorite, and many more. Overall, HRS products and systems have enabled processors to change from conventional to advanced and energy efficient processing technology with better quality and production at lower costs. The food processing sector is on an upward growth and India is surging ahead with 32 per cent of the country’s total food market being diverted to processing. This is also one of the largest sectors in India and is ranked fifth in terms of production, consumption, export and expected growth. HRS is geared up to leverage this potential through the diverse sectors of the food processing industry.

JBT Corporation to showcase costsaving solutions at Process Expo 2015 Global technology solutions provider to the food and beverage processing industry will highlight innovative products that can help can companies make efficiencies and cut costs at trade event JBT Corporation, the provider of technological solutions for food and beverage processors worldwide, will use its presence at Process Expo 2015 to showcase innovative products for companies looking to differentiate their offer and achieve cost savings. foods – including nutritional and milk-based products – to thick conductive products.” Solutions provider Unlike most of its single product-focused competitors, JBT offers a full product solution, followed up large-scale technical and after-sales support services that come with the guarantee of being deliveredby a recognized authority in the food processing industry.

wide range of product innovations for processors of everything from beverages to soups, dairy, juices and sauces will be the focus of the JBT’s participation in the show, which takes place at Chicago’s McCormick Placeconference center from 15-18 September.

“We are a solutions provider that offers a wide range of processing solutions and we engage with our customers on what they would like to achieve with regard to product, process and efficiency, andprovide them with guidance on what solutions could best meet that need,” explained Dahl.

JBT will also be featuring solutions for the increasing amount of companies looking to expand across different sectors, as well as showcasing technological innovations that enable food and beverageprocessors to save costs by becoming more energy efficient.

At the current time, Dahl said JBT was seeing an increasing demand across its business from clientslooking to process traditional products in alternative style packaging, whether that be pouches, glassor light-weight cans. As a result, he said JBT was targeting a broader sector of processing capabilitywith newer packaging formats.

JBT business manager Jeff Dahl said: “Process Expo is the premier food processing show in North America, so it’s important that JBT is present to highlight out filling, closing, pasteurization and sterilization equipment.” Market-leading integrated aseptic processing and sterilization technologies from the recentlyacquired Stork Food & Dairy Systems will also be featured at the show, according to Dahl, who said Stork’shydrostatic capabilities offered highcapacity sterilization solutions to optimize food processing. “This will be a focus for us at this particular show – we’re going to have a carrier tree, which will show the different types of packaging that can be run through the hydrostatic sterilizer,” he said. “This is a wide range of both thin liquid

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In fact, with many of JBT’s customers looking to optimize their existing operations or expand into new products or package formats, Dahl believes there is still plenty of room for growth in the NorthAmerican market. “We’re seeing good, steady growth across all segments, from the vegetable sector to pet food to the nutraceutical and soup industry,” he said. “All these companies are either looking to differentiate themselves or to drive cost savings and that’swhat we are really capable of providing.”

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Vol. 8, Issue 05 - October - 2015

CHOCOLATE NEWS

Campco focus on rural and semi-urban markets

ith the chocolate market growing between 18 and 20 per cent in India, small chocolate companies are looking to expand their share in rural and semi urban regions. The smaller companies market is becoming stronger in these regions by betting on large volumes and small chocolate bars, while the metros and cities are dominated by leaders such as Mondelez and Nestle. M Suresh Bhandary , MD of Mangalore-based The Central Arecanut and Cocoa Marketing & Processing Co-operative (Campco), said, ‘’Indians are shifting from sweets to chocolates. As a result, chocolate consumption has increased in semi urban and even rural areas. They now have a variety of chocolates to choose from." Firms such as Campco are focusing on small Rs 5-10 chocolate bars in the range in rural areas. Besides facilitating easier entry, this strategy helps them to increase their sales volumes and make some profits. What's more, technology has also become cheaper

and according to John Chavady, national sales manager of Hyderabad-based Lotus Chocolate Company, "By importing machines from China, the new entrants have been able to reduce the cost of production. Earlier, companies used to manufacture using costlier German or Italian equipment. The opening up of printing and design technology has also helped chocolate companies." An interesting trend in the chocolate market has been the changes in gifting pattern over the years -gifting of chocolates has become extremely popular, especially in cities. With chocolates becoming popular, there's a fight for shelf space between local companies and their foreign counterparts, with an array of cheap imported chocolates coming from places such as Turkey adorning the shelves of retail shops.

No compromise. On Quality, Trust & Value. Making speciality oils & fats calls for not just use of highly efficient

"But many of the so-called chocolates don't deserve that tag in the strict sense as they are not made of cocoa butter which is rather expensive. They are compound chocolates, made of cheaper vegetable fat, which have the advantage of higher melting point," said Renny Jacob, managing director of Cacobean Chocolatein, which supplies cocoa prod ucts to Mondelez and other major companies.

processing but a fine understanding of consumer tastes too. At Bunge, we take into consideration oil chemistry, application parameters and the tropical nature of the country to deliver clients just the kind of oils & fats you desire - anywhere, all the time.

The Bunge package includes: • Partnering with clients to develop customised products that meet their specific needs • Delivering products that conform to stringent norms of quality and reliability • Ensuring consistency in product characteristics and texture in every batch • Providing value-added logistics support through creative planning and execution

India is relying more on the import of cocoa products to bridge the gap between demand and supply. While cocoa production in the country rose 6 per cent in 2014 15 to 16,050 tonnes, imports rose by 26 per cent to 65,311 tonnes in the same year. Even major companies have benefitted from duty-free imports of beans and value-added products from Indonesia, thanks to the SAARC agreement, Jacob pointed out.

• Maintaining client confidentiality and trust at every stage of business operations

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Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

NEWS

India’s buffalo meat exports declines by 9% during the April-August of buffalo meat is the sharp fall in the Brazilian currency against US dollar in the last few months which have made India’s shipment of meat products uncompetitive against that of the Latin American country.

ndian Buffalo meet had achieved a record high shipment last fiscal, however during the April-August period the buffalo meat exports declined around 9% as compared to the corresponding period a year ago. According to the latest data with the Agricultural and Processed Food Products Exports Development Authority (Apeda), exports of buffalo meat in the first five months of the current fiscal has been to the tune of R 9,466 crore against Rs 10,382 crore reported for the year ago period.

CLFMA stated that the feed industry is expected to grow by 8 per cent this Livestock GDP is growing at 3.5 per cent. Currently, about one third of the total animal feed requirement of 80 million tonne in India is in the form of compound feed and it is growing at about 8 per cent in India.

In 2014-15, buffalo meat became the largest item in the agri-export basket, surpassing basmati rice exports which were worth Rs 27, 598 crore in the year. Vietnam, Malaysia, Egypt, Thailand and Saudi Arabia were the top five export destination for India’s buffalo meat in the last fiscal. However more than 45% of the value of shipment (Rs 13,200 crore) was to Vietnam. Sources said most of the meat consignments to Vietnam, eventually go to China. China officially does not import buffalo meat from India.

he apex body of livestock feed in India, CLFMA stated that the feed industry is expected to grow by 8 per cent to 40 million tonnes to keep pace with the country's livestock GDP which is growing at a rate of 3.5 per cent. "The Indian livestock industry across aqua, poultry and cattle has been growing at a steady rate year on year. Milk production is at 140 million tones and growing at about 6 per cent; the broiler meat industry is growing at 8 per cent and India is number 2 in aquaculture after China, said Amit Saraogi, Chairman, CLFMA and MD, Anmol Feeds.

According to trade sources overall buffalo meat exports during 2015-16, is expected to fall below last fiscal’s record shipment of Rs 29,282 crore, which was up 10% over the year before. Buffalo meat exports constitutes about 24% of the country’s total agricultural and processed food products exports. The main causes for the decline in shipment

About 28 million tonnes of compound feed was produced in 2014-15 and it is likely to grow to around 40 million tonnes by 2020, to support

According to said Mangesh Wange, Dy. Chairman, CLFMA and Head, Animal Feeds Business, Godrej Agrovet, "It is factors like growing urbanization and income growth is contributing to changing food consumption patterns. "In a few years, the growing population is expected to consume almost twice the amount of animal protein than today. To face the challenges in enhancing and sustaining productivity to ensure food and nutritional security, the industry requires research & development in scientific and technological innovation along with the right policy approach," he added. SV Bhave, Dy, Chairman, CLFMA and MD, Berg and Schmidt India, said, "Globally, the numbers of food-insecure people and those suffering from protein-calorie malnutrition is increasing. The time taken to transfer technology from Lab to Land is therefore crucial. It is becoming increasingly important for the livestock industry to balance economic growth with environmental and foodsafety standards."

Beef exporters to be highly Pulses import duty cause of affected by Dadri death as $3 billion trade in UP to be hit along incongruity between Food and agriculture ministries with job cuts

eef exporters in India warn that Lakhs of people could be jobless and losses of several crores would be incurred if the beef export trade is hit. What is exported is not the meat of cows, but buffaloes. Besides, milkyielding animals are not slaughtered. After the lynching of a 50-year-old man in Dadri, Greater Noida, over rumors that he had consumed beef, there are fears that the meat export industry will be caught in the political crossfires. Exporters are a worried lot. Lakhs of people are employed in meat export. Banning exports because of this incident will not solve anything. The cow is considered holy for Hindus, not buffaloes. The beef that is exported is the meat of buffaloes. Slaughter of milk-yielding animals is not allowed in India. The meat export industry earns large amounts in revenue. We are the top exporter in the world, and now we have this discussion of a ban hanging over our future. The government should consider those whose livelihoods depend on this. According to reports in the media, the

meat export industry in India is worth about $6.2 billion. Each year, half of that is earned from Uttar Pradesh, which accounts for exports of $3 billion. In 2014, India became the largest meat exporter in the world. In 2015, India exported 2.4 million tonnes of meat, as compared to 2 million tonnes by Brazil, the second-largest meat exporter. Meat from Brazil is more expensive, because cattle are reared specifically for slaughter; in India, cattle that grows old and no longer produce milk are sent for slaughter. Meat exported from India also finds ready market in Gulf countries with large Muslim population, because there is the assurance that it is halal - slaughtered in the way Muslims consider appropriate. Exporters say nearly half of the country's meat is exported from UP. Apart from those employed directly, several complementary industries, such as transporters, cold storage owners, polythene sellers and leather tanneries in Kanpur depend on the meat industry.

via state-run MMTCBSE 1.00 % after a gap of two years to boost domestic availability. MMTC has already tendered for import of 5,000 tonnes each of tur and urad dal for further distribution to state governments at subsidized rates.

s the current zero duty on pulses ends on September 30, pulse import has become a source of disparity between Food and agriculture ministries over the issue of pulses import as the former has proposed continuation of duty-free import of lentils beyond September to stabilize prices, while the latter wants 10 per cent tax to protect the interest of farmers. India produces 18-19 million tonnes but extreme shortage of pulses has made the government to import it and has been extending the time for dutyfree import of pulses to meet annual domestic shortage of over four million tonnes. Pulses production is estimated to have fallen to 17.38 million tonnes in 2014-15 crop years (JulyJune) from 19.25 million tonnes in the previous crop year due to deficient monsoon last year and unseasonal rains. India, the world's biggest pulses importer, purchased 4.58 million tonnes of pulses in the 2014-15 fiscal from the overseas market as against 3.17 million tonnes in the previous year. The government has started importing pulses

Beverages & Food Processing Times

In last few weeks, retail pulses prices have shot up to Rs 150 per kg across the country as domestic production fell by nearly two million tonne in 2014-15 crop year due to unfavorable weather conditions. The Food and Consumer Affairs Ministry, to augment domestic supply and check prices, has moved a cabinet note proposing continuation of duty free import of pulses beyond September this year. It has said imposition of import duty on pulses would make overseas purchase of lentils expensive not only for private traders but also for the government-run agencies. Nevertheless, the Agriculture Ministry has opposed the Food Ministry's proposal saying that the move would discourage farmers from growing pulses here and has suggested 10 per cent import duty on pulses to boost domestic production by encouraging farmers to bring more irrigated areas under pulses. The ministry argued that such a move would indirectly help save fertilizer subsidy as pulses are nitrogen fixing and help in stabilizing production, they added.

Vol. 8, Issue 05 - October - 2015

AGRO PROCESSING NEWS

Packaging consumption in India increased by 200 percent in a decade

ccording to industry body Indian Institute of Packaging (IIP), India’s packaging consumption has increased 200 percent in a decade, from 4.3 kg per person per annum (pppa) to 8.6 kg pppa.

Director IIP N.C. Saha said in a statement that India’s per capita consumption for packaging at present is at 8.6 kg per person per annum, as against Germany’s 42 kg and China’s 20 kg”. Saha added that just a decade ago, India’s

consumption was only 4.3 kg per person per annum, and this is a 200 percent growth. IIP said the Rs.65, 000 crore domestic packaging industry is expected to grow at 18-20 percent to reach Rs.82, 500 crore by 2016.

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“A great deal of this increase can be attributed to the food and beverage and pharmaceutical segments, which occupy the largest share in the packaging industry accounting for 85 percent and 10 percent, respectively,” IIP said. The packaging industry association is organizing its flagship exhibition, Indiapack 2015, here next month. Union Commerce Minister Nirmala Sitharaman will inaugurate India pack 2015 on October 8 at the Bombay Exhibition Centre here. Indiapack 2015 will also host the World Packaging Congress on October 9, to be inaugurated by Food Processing Industries Minister Harsimrat Kaur Badal. Indiapack 2015 will also focus on increasing the export market for fresh fruits, vegetables and commodities like tea and coffee, thanks to the participation of bodies like the Agricultural and Processed Food Products Export Development Authority, Marine Products Exports Development Authority and the food processing ministry.

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Coffee exports up by 14 per cent during April-August

he coffee board said that the exports jumped by 14 per cent to 1.43 lakh tonnes during April-August period of this fiscal from 1.26 lakh tonnes in the year-ago period despite lower global prices. Coffee Board data showed that the coffee exports went up to about 12 per cent to Rs 2,414 crore in April-August 2015, from Rs 2,148 crore in the year-ago period. Coffee exports witnessed a surge despite lower realization of Rs 1, 68,366 per tonne during the period against Rs 1,70,352 per tonne last year. Due to fall in global prices reacting to the currency depreciation in Brazil, the export realization remained lower. Besides Instant coffee, India exports both Arabica and Robusta varieties. And the major export destinations for coffee are Italy, Germany, Turkey, Russia and Belgium, among others. According to the International Coffee Organisation (ICO), while the global coffee market seems to have no immediate supply concerns, stock levels in most producing countries are waning. While there is a moderate buffer in importing country warehouses, this may not be sufficient to cover any significant negative shock to production. India's coffee production is expected to touch a new peak of 3,55,600 tonnes in the 2015-16 marketing year (October-September) as the crop prospects are encouraging due to adequate rains in most growing states, as per the Board's first estimate. The country's total coffee output has reached a record 3,27,000 tonnes in the ongoing 2014-15 coffee year.

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

CORPORATE NEWS

Kellogg to invest $450m to tap African market

Mondelez will go for healthier

products over next five years e-commerce platforms by converting every consumer connection into a purchase opportunity, Mondelez stated.

has a strong sales and distribution infrastructure in Nigeria, offering access to around 1,000 distributors, and operating 19 warehouses across six locations.

orth American breakfast cereal maker Kellogg has agreed to pay $450m for a 50% stake in Multipro, a Nigeria-based food sales and distribution company that is owned by Singapore-based Tolaram. Additionally, it is establishing a joint-venture with the African unit of Tolaram to advance its offerings in the West African region. Besides acquiring a 50% stake in Multipro, Kellogg will have the option to buy a stake in Tolaram's African unit, called Tolaram Africa Foods. Tolaram Africa Foods has a 49% stake in Dufil Prima Foods Plc, the manufacturer of Minimie snacks, Power oil, Power pasta, and Indomie noodles. Multipro, which was set up in 1997 in Lagos,

Additionally, it is setting up distribution networks in other core African nations, such as the Democratic Republic of Congo, the Ivory Coast, Cameroon, and Ethiopia. This distribution network will help Kellogg to market snacks and breakfast items to the West African market. The world's leading breakfast cereal producer expects costs related with the Tolaram transaction to cut down its third-quarter earnings by one US cent per share. Kellogg Company chairman and CEO John Bryant said: "As a region that is experiencing explosive growth, with a population of almost one billion people and an economy that is expected to more than double over the next 10 years, Sub-Saharan Africa provides tremendous opportunity for our company." The food companies in the US have been increasingly exploring other markets, as domestic consumers have been opting for cheaper privatelabel foods.

Intertek and EEPC salute excellence in quality

ntertek (www.intertek.com), a leading quality solution provider to industries worldwide, announced its association with EEPC for the 7th year in a row to felicitate excellence in quality. The Engineering Export Promotion Council of India (EEPC) is a trade and investment promotion organization sponsored by the Ministry of Commerce & Industry. EEPC-Intertek awad is a recognition of excellence in quality standards in manufacturing. This year, the winners in various categories were awarded at the EEPC India – Diamond Jubilee Celebrations. The event was attended by prominent ministers like Smt. Nirmala Sitharam, Hon’ble Minister of State for Commerce and Industry and Shri. Ravi Shankar Prasad, Hon’ble Minister of Communications and Information Technology. Talking about the association, Mr Bhaskar Sarkar, Executive Director, EEPC said, “With projects like Make in India, there has been an upsurge in enterprises for engineering goods, projects and services which are committed to providing excellence in the industry. Thanks to the international quality expertise and in-depth industry knowledge that Intertek brings, we are all the more strengthened in our endeavor to promote the engineering sector.” Adding to the same Mr. Rajesh Saigal, Regional Managing Director, Intertek South Asia said,

“The current infrastructure in the country has encouraged companies to take steps in the direction of quality manufacturing. At Intertek, we have always advocated innovation and strive to rightfully reward organizations which make an effort to create and maintain a sustainable ecosystem of quality.” The deserving winners of the awards were Patton International, a premier manufacturer of Steel Stampings and EMT Fitting Products and Skipper Electrical, a leader in manufacturing of substation equipment, EPC projects of Sub-stations, Transmission lines, Rural Electrification, Balance of Plant of Power Generating Stations and turnkey projects of Hydro, Thermal and Solar Power Generation. Mr. Sanjay Budhia, Managing Director, Patton International expressed his thanks saying, “We are delighted to receive this Intertek-EEPC Quality Excellence Award and it has boosted our vision of giving our best to the industry.” Similar sentiments echoed from Mr Rakesh Sardana, President & CEO, Skipper Electrical, who added,“Being awarded by organizations of such prestige like Intertek and EEPC has enhanced our credibility and will pave the way for better brand recognition in the international markets as well.”

Britannia interested to set up an agroprocessing facility in Andhra Pradesh

ritannia Industries showed interest to set up an agro-processing facility in Chittoor district of Andhra Pradesh.

Britannia's Managing Director Varun Berry met AP chief minister N. Chandrababu Naidu in Vijayawada and said the first phase of the proposed agro-processing facility will come up at Rs 125 crore of investment to take off by 2016 end. Berry told Naidu that they needed to zero in on a

location which helps us serve markets in Chennai and Bengalure. Responding to Naidu's presentation on major advantages AP offers in agriculture and allied sectors including horticulture, livestock, fisheries, dairy and poultry, Berry said 75% of Britannia's business is generated from biscuits while the balance comes from cakes, dairy and rusk, said the CMO statement.

In addition, it develops the next-generation portfolio in order to take advantage of the incremental growth opportunities.

S-based confectionery company Mondelez is planning to focus on healthier products over the next five years to address wellbeing, one of the global consumer trends. The company said that consumer trends shape global behavior, so help create additional growth opportunities. Mondelez executive vice-president and chief growth officer Mark Clouse said: "We intend to become the global leader in well-being snacks, with 50% of our portfolio in the well-being space by 2020, up from more than a third of total revenue. "Our goal is to simplify and enhance the ingredient and nutritional profile of our base business while also focusing on breakthrough innovation to address consumers' well-being needs." Clouse added that the company expects to focus 70% of its new product development efforts on wellbeing platforms over the next five years. Meanwhile, Mondelez will also focus on E-commerce in a bid to address the intersection between time compression and technology in snacks. The company is currently optimizing existing

Clouse added: "We estimate that e-commerce could become one of the fastest-growing platforms within our company, increasing from less than $100m in revenue today to as much as $1bn by 2020." Mondelez will also broaden its portfolio to respond to shifts in income distribution. With this move, the company is expecting to maximise its category reach and drive incremental consumers to its brands and categories. Employing around 107,000 people across the world, Mondelez produces cookies, crackers, chocolates, gums, and candies, comprising brands like Oreo, Chips Ahoy!, Toblerone, Cadbury Dairy Milk, Trident, Dentyne, Chiclets, Halls, and Cadbury Dairy Milk Eclairs, amongst others. In August, William Ackman's Pershing Square Capital Management revealed a 7.5% stake in Mondelez for an estimated $5.5bn.

Top Ramen to reestablish consumer trust like the “re-launch of the entire instant-noodles category”. The instant-noodle category has become a staple food for Indian consumers and as players are putting efforts to regain consumer trust, the category is expected to bounce back in the next few months.

he instant noodles category seems to be getting back to normalcy after being caught in a controversy over lead levels in some noodles brands, with the makers going all out to regain consumer trust. First it was ITC’s aggressive campaign to win back customers of its Sunfeast Yippee Noodles, and now it is Indo-Nissin Foods Pvt Ltd for its Top Ramen brand. The company splashed ads in the print media telling consumers about its “assured Japanese quality” and talking about the regular tests that are carried out in-house as well at its global food safety institute, indicating that the company is putting the product back on the shelves. This comes just as Nestle India has said that it is looking to re-launch Maggi by the year-end and has also launched a digital ad campaign with the hashtag #WeMissYou. Brand expert Harish Bijoor said these players are putting in significant ad spends, as this is almost

Beverages & Food Processing Times

Indo-Nissin Foods has invited trade enquires from wholesalers distributors and retailers for stocking Top Ramen instant noodles, while stating that it is widely distributed in the country. Unlike some other companies that make multiple products and have been able to sustain their distribution chain in the absence of their instant noodle brand, Indo-Nissin Foods, which only makes instant noodles, has its work cut out for rebuilding its distribution chain, say analysts. Top Ramen comes in five variants — Masala, Atta, Oats, Curry and Fiery Chilli.

Vol. 8, Issue 05 - October - 2015

TRANS FAT NEWS

Ruchi Soya to bring edible Oil from Japan by next year

Cargill is set to invest $100m in its soybean oil crush

Throwing light on the Joint Venture, Mazumdar said the company has 51 per cent stake, while J-Oil has 26 per cent and TTC 23 per cent stake. The Joint Venture is to expand the product portfolio by bringing healthier products into the Indian market and Ruchi Soya will provide raw material and marketing and distribution assistance to the Joint Venture. While J-Oil will provide technical assistance and TC will provide management assistance for accessing international markets through its network.

uchi Soya is bringing Soybean Germ Oil with the assistance of Japan's edible oil major J-Oil Mills and global trading firm Toyota Tsusho Corporation (TTC) by next year. Talking about yet-to-be-launched product, Ruchi Soya Industries CEO (Consumer Brands Division) Nilesh Mazumdar said the oil is extracted from a soybean seed and it has absolute zero absorption of cholesterol.

Earlier, the company announced their tieup with Protein Foods and Nutrition Development Association of India (PFNDAI) to advise it on Soya brand Nutrela. Nutrela and PFNDAI will implement a nutritionist outreach programme in Karnataka and Maharashtra, Mazumdar said. "The two sides will be jointly reaching out to more than 200 nutritionists each in Mumbai and Bengaluru alone in next two months," he said.

"The demand for soybean meal and oil continues to grow, and expanding our capabilities in Egypt will enable us to better serve our customers in the local market with high-quality products, crushed and produced locally."

argill is set to invest $100m in its soybean oil crush operation in Borg El Arab, doubling capacity in order to meet the soybean meal and vegetable oil demand in Egypt. The new development will see an addition of a 3,000t production line to the company's existing facility to enable Cargill to maximize the economy of scale and efficiencies in its production process for both soybean meal and oil. Cargill Middle East and Africa grain and oilseeds business head Johan Steyn said: "This investment fits with our strategy of growing our business in Africa and the Middle East.

Under this initiative, the expanded crush plant will feature the latest technology, which will result in the production of an enhanced high-protein meal. As part of the new investment, Cargill will also construct an additional 42,000t of storage capacity within its existing premises at the port of Dekheila in Alexandria. This extension will allow the company to strengthen its supply chain in a bid to achieve improved efficiency in the timely delivery of grains to its Egyptian customers, and to its crush plant at Borg El Arab. Work at the Borg El Arab facility is expected to start in November this year and the expanded facility is scheduled to be operational by mid2017. Expansion work at the port of Dekheila is also due to begin in November, and is scheduled to be completed by the end of next year. Meanwhile, the company will also install equipment that will enable significant savings in power consumption for the new and existing plants.

For its expansion plan Jumbo King looking for strategic partner

ast-food chain Jumbo King, founder, Dheeraj Gupta is looking for a strategic partner who can invest Rs 65-100 crore to fund its expansion plans. Jumbo King, a Mumbai-based chain wants to expand its operations in the country and increase spending on marketing to better face the challenge from multinationals such as McDonald's, Dominos, Burger King and Carl's Jr. As part of strategy, it is planning to promote 'vada pav' as the 'Indian burger'. Gupta said, "We feel we have systems in place and have reached the inflection point and should go national with a stated aim of opening our 1,000th store by 2020 and the company has been cash positive for the last three years and growing at 25% year-on-year." According to Gupta, he is looking for an investor who understands food space and appreciates the power of franchising. The company plans to use the funds for marketing and appointing senior leaders to accentuate the company's business. "Till date, we have grown with almost zero marketing budget, but now is the time to use funds like Domino's and others who continue to spend on marketing to be on the top of consumer's mind," Gupta said. He said India's food market has huge potential, growing at a compounded rate of 32% y-o-y, adding that if a home-grown brand like Jumbo King is able to scale up to 1,000 stores, it will set an example for other home-grown food brands to scale up too.

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

Dry fruit player VKC Nuts in strategic association with American Pistachio Growers (APG)

eading dry fruit player VKC Nuts is going into strategic association with American Pistachio Growers (APG), a non-profit voluntary agricultural trade association body to introduce high quality pistachios in to mainstream cooking. This partnership will empowers VKC Nuts to exclusively introduce premium APG certified pistachios in India under its latest consumer brand Nutraj.

BAKERY NEWS

The show’s finally over for poor quality gluten-free products “Many people will tell you this is impossible – but it’s not”

omplaints about dry, crumbly gluten-free bakery products could soon be a thing of the past, thanks to a natural milk protein-based solution developed by Arla Foods Ingredients. The market for gluten-free products is going through the roof in both Europe and the US, driven predominantly by the perception that they are healthier and can aid weight loss. Sales in both regions grew 20% during 2014, to reach a value of €1.5 billion in Europe and $20 billion in America . However, it remains the case that gluten-free bakery products often perform poorly in terms of taste and texture. Nutrilac® proteins for gluten-free products is a solution that addresses this problem directly, offering a natural solution that guarantees end-products with an excellent structure that don’t compromise on sensory quality. It is 100% gluten-free and simulates the protein structure and functionality of wheat gluten, resulting in bread and cakes that have the soft and elastic crumb that consumers are seeking. John Kjaer, Global Sales Manager for Bakery at

Arla Foods Ingredients, said: “Gluten-free is huge right now, but such strong sales growth won’t be sustainable if products don’t taste nice, because eventually consumers will drift away. The winners in this category will be bakery companies that can make gluten-free bread and cakes that are virtually indistinguishable from their conventional equivalents. Many people will tell you this is impossible – but it’s not. With Nutrilac® proteins for gluten-free products, perfect gluten-free bread and cakes are a reality. The show’s finally over for poor quality gluten-free products.” Set to take centre-stage at the forthcoming IBA trade show in Munich, Nutrilac® milk proteins for gluten-free products are easy to use in bakery recipes and require no new machinery or change in standard manufacturing procedures, making it easy for companies to enter the gluten free market. The proteins result in an elastic dough that can be handled in a similar way to standard yeast-raised dough. They ensure excellent crumb resistance for enhanced slicing and a pleasantly fresh crust. The

Gunjan Jain, managing director of VKC Nuts said, "This association with APG is a part of our key focus to source the best nuts and dry fruits from across the globe and offer it to our Indian consumers." All APG certified Nutraj variants will be available pan India in leading retail stores as well as on e-commerce portals including Nutraj. com. According to Jain there is enormous room of a strong nuts and dry fruits market in India. "Nuts and dried fruits are traversing a luxury into a necessity and from a commodity into a lifestyle product, with more and more people turning to it as a healthy snacking option" he added. Nutraj encompasses a comprehensive variety of premium exotics like dried cranberry, kiwi, prunes, pineapples, apple rings, figs, hazelnuts and more, beyond the classic favorites like cashews, almonds, walnuts and peanuts. However, at $2.5 billion consumption of pistachio in India is just 3% of the global demand. By associating with reputed bodies like APG, VKC Nuts aims at bringing in the best quality pistachios to India and popularizing the nut in the consumer market. Adhering to global standards of quality and hygiene, all APG certified Nutraj Pistachio variants will be vacuum packed or nitrogen flushed to ensure that they remain fresh and crisp.

IMCD India Private Ltd. Mob: +91 98 200 98 568 vikas.patil@imcd.in Tel: +91-22-61460900

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Beverages & Food Processing Times

proteins are completely natural and have a neutral, rounded milky taste, which ensures they don’t impair product flavour. IBA takes place in Munich, Germany, from 1217 September 2015. Visit Arla Foods Ingredients on Booth 465 in Hall A1 to learn more about the company’s Nutrilac® milk protein solution for gluten-free products, and its complete portfolio of innovative ingredients for the bakery industry.

Vol. 8, Issue 05 - October - 2015

IICE inaugurated by R V Deshpade held in Bengaluru

Receives thousands of interested companies from all over India

ndian Ice Cream Congress & Expo 2015 held at Bangalore, this first of its kind show held in Bangalore. Around 800 Ice Cream Manufacturers from all over the country and world have participated in the show. The show was held in Mumbai, Ahmedabad, Hyderabad and New Delhi in previous years. This show is organised by â&#x20AC;&#x2DC;Indian Ice Cream Manufacturers Associationâ&#x20AC;&#x2122; IICMA and show managers are Aim Events India. The Show was inaugurated by R V Deshpane Miniter of Large

how industry can enhance its strength across the country. IICMA is the apex body of ice cream manufacturers of the country working for the benefit of the ice cream industry. President, Rajesh Gandhi of Vadilal ice cream informed media persons, this is the time of planning for the Indian ice cream manufacturers for the next summer season. At this time we decide what would be our flavours for new launches next year and capacities of processing. Secretary, Sudhir Shah of Scoop ice cream

Gandhi Informed if the per capita consumption increased by 200ML more i.e. 600ML, will be a huge success for the industry and great challenge and opportunity for manufacturers of the country. He also added that potential of export of Indian ice creams is yet to be explored. Some of the companies have successfully been exporting to the global market. Indian ice cream congress expo also attracted allied industry which is showcasing their latest technologies & trends in the exhibition. Many

their customers. Global giants for processing of ice creams in India also have stalls in the expo to exhibit their technologies to the manufacturers. Food safety solution providers were also in demand during the show. Balaraju A. of Dairy Classic from Bengaluru said to the press that IICMA has taken events like Meggi issue as an opportunity to improve the quality and standards of the ice creams in India. IICMA is committed to help its members to understand new challenges, will train them about

& Medium Scale Industry & Tourism, Govt of Karnataka. Deshpade said Karnataka has huge potential for ice creams especially in growing towns of the state. He also said industry should come together to face the challenges and he is happy to see that IICMA is the one who is doing fantastic work for the development of ice cream market in India. S Sampathraman, immediate past president of FKCCI was the guest of honor he showed the way

Hyderabad said due to our efforts per capita consumption of ice creams have increase from 300MlL to 400 ML in the last 5 years. Now the association is planning to launch National Ice Cream Day from next year onwards and every second Sunday of April month will be celebrated as National Ice Cream Day of India. This is on the lines of America where they celebrate national ice cream day and have achieved huge success among masses.

companies involved in cold chain services and display cabinets have also participated in the show. Cold chain providers are the biggest beneficiaries of the growth of this sector. Ice cream being a perishable product it requires same temperature to be maintain from factory to the consumer. Companies provide solution for flavouring and other additives are also participating in the show to showcase their latest trends so that ice cream manufacturers can experiment newer this with

upgraded measures. Indian Ice Cream Congress and Expo also had a full day conference to understand new trends and challenges in front of the industry. Many globally recognised speakers delivered their presentations in the seminar. RV Deshpande, said govt of Karnataka shall provide all required assistance to manufacturers who are willing to invest in the state.

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

Glimpses of Exhibition

Glimpses of Seminar

Glimpses of Gala Night

Beverages & Food Processing Times

Vol. 8, Issue 05 - October - 2015

AGRO PROCESSIN NEWS

Govt to evolve policy to Encourage Food Processing Units

he government in Benguluru is evolving a new policy to promote food processing units in the state, said, Industries Minister R V Deshpande. The Minister while addressing officials of the Industries and Agriculture Departments, encouraged food processing units and said that it will also ensure that farmers get better

Tiruvuru, Mylavaram to have Food Processing units soon

prices for their produce. He directed the officials to explore avenues to set up such units based on the agricultural inputs from the region. Despande also said,“Incidents of farmer suicides can be drastically brought down by forging coordination with the departments of agriculture, textile, horticulture, irrigation and industries.” He further added that a conducive atmosphere is needed to attract investments in all parts of the state.

Referring to reports of encroachment of land reserved for setting up of food parks across the state, he directed the officials to take measures to prevent this. Agriculture Minister Krishna Byregowda spoke on the measures taken by the department to make farmer-friendly food parks in the state. Later, Deshpande held a separate meeting with Textiles Minister Baburao Chinchansur and heard the problems faced by workers in the garment industry.

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rishna districts assembly segment -Tiruvuru and Mylavaram will soon get food processing units with investors coming forward to invest in that area. Efforts are also on to encourage bamboo investors to set up their units here. A mango pulp processing unit is coming up in an area of 10 acres near Gollamandala village as part of a joint venture between a US-based company and a reputed local firm. This village has been

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adopted Vijayawada MP Kesineni Nani. The Rs. 20-crore unit is expected to provide employment to 400 local people. The authorities are said to be talking to a few other food processing companies to set up units in these Assembly segments which are known to grow abundant stocks of mangoes exported to countries like Dubai, Hong Kong and Singapore. Sources said the units would be equipped with new technology which has vast market potential in US and European countries. The proposed unit at Gollamandala may start functioning in six months. Officials in the district feel that processed food sector is poised for growth, mainly through exports. If current infrastructure-related problems are minimised and product and packaging quality are significantly improved, Krishna district can become a potential exporter of processed food, they feel. Meanwhile, to encourage farmers to take to bamboo cultivation, the authorities recently sent 100-odd farmers from Vijayawada Parliamentary constituency to Karnataka and Maharashtra to study the cultivation patterns.

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121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

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Vol. 8, Issue 05 - October - 2015

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