Beverages & Food Processing Times August 2016 by Advance Info Media & Events

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Vol. 9, Issue 03 - August - 2016

FOOD SAFETY NEWS

ASCI upholds complaints against PepsiCo & Patanjali

SCI’s (Advertising Standard Council of India) Consumer Complaints Council (CCC) upheld complaints against PepsiCo India, Britannia Industries Ltd, Sri Sri Ayurveda Trust, Patanjali Ayurveda Ltd, Bhaskar Venkatesh Products Pvt. Ltd and Khoday India Ltd along with 9 in the E-commerce Category, 9 in Consumer Durables Category.

Paytm Cash pakka”, is misleading and luring the consumers to buy Pepsi bottles, with a minimum hope of getting some cash back through Paytm. The advertisement itself does not clarify the main condition for the offer of it being mobile number specific. Also, the disclaimers in the advertisement were not in the same language as that of the voice over.

The CCC found the following claims Beverages and Food advertisers to be either misleading or false or not adequately / scientifically substantiated

Britannia Industries Ltd. (Britannia Whole Wheat Bread): The advertisement’s claim, “100% Whole Wheat Bread” on front of pack is misleading by ambiguity as the Whole Wheat content in the product is in the range of 50% to 65% and other solid content in the product is coming from other sources.. Sri Sri Ayurveda Trust (Ojasvita Health Drink): The advertisement’s claim, “Ojasvita’s 7 Power Herbs support your daily mental fitness needs” is not substantiated and is misleading.

and hence violating ASCI’s Code. Meanwhile, Yoga Guru Baba Ramdev Patanjali is planning legal action against the Advertising Standards Council of India (ASCI), citing a Bombay High Court order that last year declined to recognise the body as a regulator. Patanjali's legal team is expected to use this verdict to present its case of the body lacking the legal backstop to pull up advertisers. According to Patanjali Ayurved’s managing director Acharya Balkrishna, its legal team is still working on this matter, as reported by other media. Last year in a case filed by Teleshop Teleshopping against advertising industry self-regulator ASCI Bombay High Court had called out ASCI's conduct in dealing with that company's ads as ‘high handed, unlawful and unilateral.’ The order had even mentioned that ASCI wasn't a statutory body or government regulator, and that it didn't have the powers to restrict any commercial advertisements of the petitioner, who wasn't a member of ASCI. Complaints against the following advertisements were upheld. PepsiCo India Holdings P. Ltd. (Pepsi): The claim in the advertisement, "Har Bottle par

Patanjali Ayurved Ltd. (Patanjali Kachi Ghani Mustard Oil): The advertisement makes a sweeping statement that a majority of the products in the market are adulterated with addition of cheap palm oil. There was no authentic evidence to support this statement and the advertisement was misleading by exaggeration. The advertisement also unfairly denigrates other oil products calling them as cheap adulterants. Bhaskar Venkatesh Products Pvt. Ltd. (Bhaskar Salt): In the advertisement, the reference to “No need to worry” read in conjunction with the mention of “blood pressure, acidity” further recommending “eat Bhaskar salt” was misleading, by implication. The advertisement implies that Bhaskar salt is safe even in case of blood pressure and acidity. Khoday India Limited (Peter Scot): As the advertiser did not provide the annual market sales data of the product/service advertised “Golf accessories”, it was concluded that the advertisement was a surrogate advertisement for a promotion of a liquor product – Peter Scot. Earlier In June the Food Safety and Standards Authority of India (FSSAI) has signed a MoU partnering with the Advertising Standard Council of India (ASCI) to monitor the cases of misleading advertisements in the Food and Beverage sector.

FSSAI issues guidelines for standards of instant noodles

n wake of Maggi controversy last year, Food safety regulator FSSAI has issued draft guidelines for standards of instant noodles and has proposed that egg powder may be added. Instant Noodle means product prepared from wheat flour and/or rice flour and/or flour of any other cereals, millets and legumes and starches,

dried fruits and vegetables, nuts, edible protein and egg Powder may be added, if required," the regulator said in a notification. Besides instant noodles, the food regulator also issued draft guidelines for quality standards of fortified Atta, fortified Maida, durum wheat Maida, quinoa, fortified rice, instant noodles, tapioca sago or palm sago and pearl millet flour. Earlier this year on April 1, FSSAI had asked state authorities to launch proceedings against only those noodle or pasta companies that had taste-enhancer MSG in their products despite carrying 'no MSG' or 'no added MSG' label on the packets. Glutamate is naturally found in some common foods such as milk, spices, wheat, and vegetables.

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

FOOD PROCESSING NEWS

Changed norms will help to establish more food parks: Minister

inister of State for Food Processing Sadhvi Niranjan Jyoti informed about the changed norms of establishment food processing unit by reducing the requirement and capital. In her address on international convention on potatoes, fruits and vegetables, organised by the Federation of Cold Storage Associations of India, Union Minister said that government has planned 200 new food processing units across India by reducing the requirement of land and capital from Rs 200 crore to Rs 20 crores. On the occasion she said Agra should take advantage of the facilities being offered by the government as it produces 45 to 50% of the country's total potato. She hoped the new initiatives would help the potato cultivators The minister said that due to earlier limits, entrepreneurs were not able to invest in this sector and potatoes from the Agra region are presently sent to other states due to high costs of processing. Speaking at the valedictory session, Uttar Pradesh Minister Ram Shakl Gurjar promised to facilitate policy reforms and press the government to do away with annual licensing of cold storages, to have one-time licenses as in other states. The Federation has been demanding end to Mandi Samiti tax on potatoes. Association's secretary Rajesh Goyal said the partner country Holland sent 80 delegates to the exhibition which showcased the latest technology and techniques available to increase the efficiency of cold storages, and promote use of solar energy. “Participation of delegates from China, the US, Holland, and Germany, is expected to give a big boost to up gradation of technology in the food processing sector”, he said.

AMUL expansion to meet chocolate demand

o cater with growing demand for the chocolates Amul has decided to expand its existing chocolate manufacturing plant. After the expansion, the company expects the factory to be producing four times the chocolate it presently does . Currently, the Mogar plant of company manufactures 3000 tonnes of chocolate per year and after the expansion it will manufacture 12,000 tonnes per year. Amul is a leading dairy processor and manufacturer in India also produces chocolate –currently, its portfolio includes Amul Chocolate in Fruit ‘N’ Nut, Milk Chocolate and Dark Chocolate flavours and Amul Chocozoo, a collection of animal shaped choco bites. R S Sodhi, the managing director added “Our sales have grown beyond our capacity. Our dark chocolates varieties are highly successful. Also, apart from consumers, there is growing demand of chocolates for our own in-house chocolate icecream varieties and beverages. We are market leader in chocolate ice-cream segment.” “The current chocolate making capacity which is 250 tonnes per month will be increased to 1,000 tonnes per month looking at the growth of the segment and to meet the increasing demand of Amul chocolates in the next 10 to 15 years, both from consumers as well as institutional level. We will be investing Rs 100 crore for this,” said Dr K Rathnam, managing director, Amul Dairy

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

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Vol. 9, Issue 03, August 2016,

GST impact: Price rise may pinch the common man

he goods and services tax (GST) has several plusesfrom uniform tax rates across states, reduced logistics cost to producers, and improved tax compliance and a check on black money. However, in the first year after it comes to force, the common man will have to bear the brunt of a higher inflation. The overall impact, on CPI may be about 2070 basis points in the first year of the new tax, say tax experts. But, depending on spending behaviour of consumers, the impact on your household budget may vary. "The biggest pro of GST is that we will have a single tax without the cascading effect of multiple taxes, so only value addition is taxed at each point, that is a healthy international practice," said Piruz Khambatta, chairman at Rasna, and chairman at CII National Committee on Food Processing. The impact on prices can be known only when the GST rate is fixed. A report by the GST committee released in December last year, has some estimates. In a dual rate scenario, it says, with a lower rate of 12 per cent and a standard rate of 18 per cent, there only will be a negligible inflation impact. Alternatively, with a lower rate of 12 per cent and a standard rate of 22 per cent, there would be a 30-70 basis points impact

on aggregate inflation. Items of mass consumption that will impact the poor, including food and fuel if exempted, the impact will be even minimal, it adds. In case of a single rate, say at 18 per cent, prices would increase by 2.5 per cent. "Unless the overall GST is low for the food processing sector, it will lead to an increase in inflation and will not benefit farmers or consumers", Khambatta said, adding that no company will take the hike and pass it on to consumers.

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Govt. to facilitate foreign investors in food processing sector: BADAL

Angshu Mallick, chief operating officer at Adani Wilmar, said he is happy that GST is coming but there is still no clarity on whether the existing taxes, like mandi tax, will be merged with GST . "For instance, in Uttar Pradesh, there is 2.5% mandi tax and a VAT of 4%. These, however, vary from state to state. So, we would like to know whether mandi tax will be there or not apart from GST," he said.

he Minister of Food Processing Industries Smt. Harsimrat Kaur Badal met the Ambassadors/High Commissioners/representatives of the countries viz. UAE, Germany, France, Poland, Australia, Italy, Netherlands, Indonesia, South Korea, Thailand, Canada, China, New Zealand, Brazil, USA, UK, Russia, Japan, Malaysia & Belgium and explained to them the vast opportunities that have arisen in India for foreign food retailers and food manufacturers as a result of the recently announced 100% FDI in trading, including e-commerce, in respect of food products manufactured and/or produced in India Smt. Badal also shared that the Ministry of Food Processing Industries would be providing hand-holding and facilitation for all foreign investors who would like to invest in the food processing sector in the country," an official statement said.

Saloni Roy, senior director at Deloitte, said exemption or concession treatment for agriculture commodities, which are sensitive to price hike, will continue. "However, food products are eligible for concessional duties today and if the GST rate touched 12% to 18%, we might see an increase in prices," she said.

She said there are opportunities in the mega food parks in India wherein foreign investors could set up units immediately and take advantage of 100 per cent FDI in trading of food products manufactured and produced here. The Minister also addressed certain concerns raised by the representatives of 20 countries.

"I hope that GST does not put breaks on the growth momentum recently regained or burn a big hole in consumers already pin holed pockets and take processed food beverage, a fundamental necessity, out of the common man's reach."

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Vol. 9, Issue 03 - August - 2016

TEA & COFFEE NEWS

Nutriproducts introduces natural resourced plant formulations

ndian organic tea manufacturer Herb Nutriproducts has introduced plant-based formulations and food supplements under its Pure Nutrition brand. The company offers a wide range of products, which includes natural foods, supplements and herbal infusions, containing natural nutrients to treat complex ailments such as diabetes, cardiovascular diseases, liver and kidney complications, as well as weight-related ailments. The plant-based formulations are expected to help prevent and heal several ailments and diseases, as well as improve body immunity. Herbs Nutriproducts founder and director Luke Coutinho said, “Pure Nutrition is offering a gamut of services to a vast number of patients with the forte of improving their lifestyle.

“After years of research and study, the company’s endeavors have resulted in an escalated product range from four to above 30 supplements catering to combat against various disorders. “We also ensure that our experts do not just sell but also insist on lifestyle alongside of those medicines and treatments, added Coutinho. Pure Nutrition has a team of expert herbalists, scientists, nutritionists and doctors that are dedicated to engineer plants to derive formulations that can be completely absorbed into the cells of the human body. The formulations are extracted using experience and knowledge of nutritionists and food engineers, along with ancient knowledge of local doctors and farmers. The company is also working closely with the farmers to maintain sustainable and consistent supply of plant ingredients to cope with the growing demand. Pure Nutrition has presence in Bangalore, Chennai, Coimbatore and Mumbai. It also uses various e-commerce platforms to enhance its reach.

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Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

TRADE NEWS

Obama signs mandatory GMO labeling bill

resident Obama has signed into law a bill that will require food and beverage manufacturers to label the presence of genetically-modified ingredients in their products. Congress passed the bill last month. It gives manufacturers the option of using an on-package statement, a USDA-approved symbol or an electronic QR code printed on the product label that directs consumers to a website containing the necessary information. The bill also immediately nullifies any state laws regarding GMO labeling, including Vermont's mandatory labeling law, which went into effect July 1. Approval of this bill has been controversial, pitting players across the food industry against each other. But it has also brought opposition from a vocal group of consumers and public health advocates. They believe a QR code is an insufficient labeling method and discriminates against certain demographicsthat do not have regular access to a smartphone that can scan the QR codes in the store. Earlier this year, before even Vermont's mandatory GMO labeling bill took effect, several companies pledged to label GMO ingredients on product packaging. However, now that a QR code is a legally viable option, it's unclear whether these companies will end up switching from on-package to electronic disclosure. But several other companies have already been labeling GMO ingredients using the now approved method of a QR code, specifically with the Grocery Manufacturers Association's SmartLabel. That includes Hershey, which helped pioneer it. The company had already seen 47,000 QR code scans on the 300 products that currently bear SmartLabel though it had not yet done any promotion of what SmartLabel is or does.

Huhtamaki buys 51% stake in Val Pack

iming its expansion in India Finnish packaging firm Huhtamaki buys 51 percent stake of Val Pack Solutions Private Limited, a privately held paper cup manufacturer based in Mumbai, for approximately Euro 2 million (about Rs 15 crores). The business will become part of Huhtamaki's Foodservice Europe-Asia-Oceania business segment. â&#x20AC;&#x153;Many of our global and regional customers have plans to grow in India. With Val Pack, a wellestablished company with high manufacturing standards, we are able to serve them locally. We also look forward to growing the business further by investing in additional capacity and introducing an extended offering of foodservice packaging to the Indian market,â&#x20AC;? said Eric Le Lay, executive vice president, Foodservice Europe-Asia-Oceania, Huhtamaki Earlier in July 2014, it acquired Positive Packaging Industries, a privately owned flexible packaging company with nine manufacturing facilities in India and the UAE, for Euro 247 million (about Rs 2009 crore).

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

ITC is soon going to expand its Sunfeast Yippee

TC is soon going to expand its Sunfeast Yippee! Brand of instant noodles into the atta-based variant and will create a complete portfolio of such products including a multigrain one to build a heath quotient for a category which recently was shrouded in controversy regarding product safety. The move is also aimed at accelerating the brand to attain the Rs 1,000 crore sales mark this fiscal, two senior industry officials said. This is also in line with ITC chairman YC Deve plans to focus on health and nutritious food products. The officials said ITC will launch Atta noodles next month, which will be priced at around 20 per cent premium taking the competition straight to market leader Nestlé’s Maggi which recently relaunched the Atta variant and Patanjali. As per last publicly available data, ITC is the second largest brand in instant noodles with around 33-34 per cent market share having gained ground when Maggi was off-the-shelves for few months last year due to a temporary ban by the nation's food regulator. After its relaunch, Maggi continues to dominate more than half of the Rs 2,000 crore instant noodles market.

SNACKS NEWS

Big fast food companies luring consumers

it is an opportunity for them to innovate and offer more value to consumers. "Our recent Pizza Mania Extremes range was one such innovation, starting at Rs 79 for value conscious consumers."

ith buyers remaining tightfisted for nearly two years now, big fast-food brands like Costa Coffee, Pizza Hut, Dunkin' Donuts, KFC and Dominos are trying hard to bait them with 'deep discounts. Therefore, bringing happy days for fast food lovers. Outside a Costa Coffee store a man hands out pamphlets trying to usher in passers-by. At other 'quick service' restaurants (QSRs), banners scream offers like 'buy-one-get-one free' and discounts as high as 50%. Ravi Jaipuria, whose RJ Corp owns franchisee rights for Yum Restaurants-owned KFC, Pizza Hut and Taco Bell, and UK-based coffee chain Costa Coffee, stated that the market is very competitive and everybody is trying to grab a piece of that. The spending power of people is not what it seems on paper. Everybody is fighting for the same customer. Jaipuria added that he had observed a slight increase in consumer spending April onwards, but wasn't sure if it would last. Sales at south Indian cuisine chain SagarRatna,

which runs about 90 stores, have been stagnant since April last year. Policy changes by the government are yet to bear fruit," said Murali Krishna Parna, CEO at SagarRatna Restaurants, which is led by private equity firm India Equity Partners. Although everybody is offering bargains, the strategy varies. Some are bundling different products for a discounted price while others are promoting happy hours on select days to push sales. Domino's Pizza, which operates more than 1,000 outlets across the country, is also facing lukewarm sales growth. S MuruganNarayanswamy, senior VP-marketing at Domino's Pizza India, said that

Kerala to be first to impose 14.5% 'fat tax'

on junk food

ulti-national fast food chains like McDonalds, Pizza etc. are set to be hit on the back of the new tax imposition by Kerala. Kerala has introduced a ‘fat tax’ on the consumption of junk food items like pizzas and burgers sold through branded restaurants. This is the first time a state in India as taken such step. The newly-elected LDF government imposed 14.5% tax on branded restaurants selling items like tacos, pizzas, burgers, sandwiches, among others. The announcement was made by state finance minister Thomas Isaac as a part of the newly-elected LDF government’s first State Budget presentation after being elected to power. Meanwhile, the state government has also made consumption of ready-to-eat chapatisdearer with the introduction of 5% tax on wheat products in packets. Along with this, 5% tax has been imposed on packaged basmati rice and coconut oil. Disposable glasses made out of plastic are set to be taxed at a whopping 20%. The introduction of fat tax, as a measure to curb the consumption of junk food among people, has been a matter of global debate. Some countries like Denmark and Hungary even implemented it. Denmark, however, scrapped it later.

Beverages & Food Processing Times

Costa Coffee has shut down many loss-making stores. Revenues at Jubilant Foodworks, which operates Dunkin' Donuts and Domino's, were 4.2% below expectations during January-March this year, and its profits took a hit of 6.6%. American fast food chain Yum! Brands' India unit, which operates around 800 KFC, Pizza Hut and Taco Bell outlets, also reported a 5% drop in sales in 2015 due to a 13% decline in same-stores sales. Apart from a wary consumer outlook, the monsoon is a lean time for QSRs because schools and colleges have reopened. They have to resort to discounting for their walk-in customers because online delivery of food has emerged as a large competitor for bricks-and mortar fast-food chains. While most QSRs take orders online, the explosion of food delivery marketplace and internet-first restaurants over the past couple of years has given consumers numerous alternatives. Backed by investor money, food-tech startups like Zomato, Foodpanda and Swiggy are also deep-discounting to shift consumers online.

Vol. 9, Issue 03 - August - 2016

FOOD PROCESSING NEWS

Bengal’s government new scheme for farmers

iving a clear indication that farmers benefit is the priority of the West Bengal government has come up with a new scheme buyback deals to engage farmers with the corporate sector, aiming to boost the food processing industry in Bengal. At a seminar on new opportunities in food processing and horticulture industries in West Bengal organised by Bharat Chambers of Commerce on Tuesday, Abdur Razzak Mollah, state food processing minister, said that the scheme was different from contract farming, a practice followed by wafer makers Pepsico and ITC in a number of states, including Bengal. "Farmers interest is being protected while they are being given opportunity to earn more for their produce. But this is not contract farming. It is a buyback arrangement" he said. Food processing and horticulture minister said: "Producers should tie-up with farmers, indicate their requirements, invest in advance and buy the end-produce back. Their investment may also be in technology and raw materials. Farmers in our

state are talented enough and a simple training session for them will ensure availability of the perfect produce". Abdur Rezzak Mollah urged processed food units and investors eyeing the sector should opt for tieup with farmers to get produce of the required standards. Planning to introduce this arrangement in the milk and meat processing sectors minister said that the state government has already set up 17 Farmers Producers Organisations (FPOs) who can be contacted by investors and producers for can contact d for tie-ups. Under FPOs, investors will tie-up with an organisation of farmers which looks after their interests. The FPOs that we have set up have a minimum membership of 1000 farmers each and the maximum number is 1753. Speaking about meat export, the minister said: "Earlier, during the Left Front regime attempts were made to operate slaughter houses in Durgapur and Mourigram but due to apprehension of people that cows will be slaughtered there the projects could not be implemented properly.

Pulses from Myanmar to fill demand and supply gap

nion Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan on Thursday said the government is holding bilateral talks are going on with Myanmar and African nations for import of pulses to boost domestic supply. The demand-supply gap reaches 7.6 million tonnes in the country. The Union Cabinet in the first week of July approved a long-term contract by signing a Memorandum of Understanding (MoU) with Mozambique for import of pulses either through the private channels or Government-toGovernment (G2G) sales through state agencies nominated by the two countries. Paswan said that the price rise will be there till there is a problem of demand-supply gap. “The challenge of demand-supply gap of about 7.6 million tonnes is being addressed via public and private imports and local procurement for buffer

stock creation of 20 lac tonnes", he added. Minister hoped that the production of pulses will boost this year as the good monsoon hit the country for a good production. Paswan also urged the state governments to take measures to limit stock holdings and clamp down on hoarding to check the rise in prices "States can take action against hoarders and blackmarketer's by imposing stock limits on traders. We can only give direction to states to take action against hoarders. We cannot do it ourselves because action-taking power rests with the states," he said. The total pulses production in the country during 2015-16 is estimated to be 17 million tonnes while 5.79 million tonnes of pulses were imported to meet the domestic requirements. However, the total availability of pulses including domestic production and imports were was less than domestic requirements putting pressure on the prices of pulses during the year 2015-16 and current year.

Centre asked states to remove taxes on essential food items

n order to ensure adequate availability of pulses, among other steps to ensure supplies at affordable prices, Government has asked the states to remove all local taxes on essential food items edible oils and other essential food items at reasonable prices.

Ministry of Consumer Affairs, Food and Public Distribution has asked the states to take up the market intervention on a real time basis and to review APMC Acts on priority to delist pulses and other essential food items so that farmers can sell their produce at any place of their choice, minimising stages of supply chain from farm gate to ultimate consumers. The ministry said it will ensure reasonable prices for consumers and also fetch better prices for farmers and implement the Price Stabilisation Fund Scheme for market intervention to enhance availability and check prices of essential. States have also been requested to consider a pricing policy for pulses and such other essential food items under Section 3(2) (c) of the Essential Commodities Act and to make it enforceable for

remium isn't just about ingredients or packaging, but also about consumers' perceptions. Consumers often associate smaller companies and brands with higher quality, and that has led to a continued increase in market share for smaller companies versus larger manufacturers. Over the past five years, the 25 largest food manufacturers reported a CAGR of 0.1%, compared to 3.2% for the next group of 75 manufacturers and 6.3% for the smaller companies tracked, according to Nielsen data.

MTR Foods as targeted its revenue of Rs.700 crore for January-December 2016 and is aiming to touch Rs.800 crore this year and Rs.2,000 crore by 2020. MTR Foods Chief Executive Officer, Sanjay Sharma said: “We have a 72 per cent market share in the South. Though we have a pan India presence, South will continue to be the key focus area for us. In the coming years, South will contribute about 70 per cent of total sales.”

So, we have come out with this innovative mixes, which cannot be replicated at home. These mixes have 40 per cent vegetable infusion, which is incomparable to any other product or breakfast mixes in the country, thus making MTR idlies and vermicelli, the best option.

It said states may also consider creation of a dedicated Force under the Essential Commodities Act, on the lines of Tamil Nadu Civil Supplies Crime Investigation Department, for effective operations against hoarders, blackmarketeers, profiteers and unscrupulous traders or speculators of essential commodities. States have been asked to create a robust Information Management System of prices, production, availability, unscrupulous trading, hoarding, and black marketing and to strengthen the Price Monitoring Cells to have the ground zero information available on daily basis and sharing it with all the enforcement agencies of Union and state Governments. A monthly report on enforcement actions under the EC Act & Prevention of Black Marketing & Maintenance of Supplies of Essential Commodities Act is mandatory to ensure regular review of the same at highest level and to make public the Action Taken Report of States regularly on the website of Department of Consumer affairs.

exceeded the importance of better flavor in terms of consumers' perception of high-quality foods. Manufacturers are often concerned about how changing to more "natural" ingredients might impact flavor, and in turn impact the product's appeal to consumers. Four out of 10 adults regularly purchased premium foods and beverages last year and fresh and easyto-prepare premium items were among the fastgrowing categories, according to data from IRI and the Specialty Foods Association published this month in Food Technology. Among the most common characteristics consumers use to define high-quality foods and beverages are better ingredients (57%), better flavor (52%), 100% natural (46%), uses real spices and herbs for flavoring (38%), minimal processing (35%), something familiar but made with better ingredients (34%), and 100% organic (31%), according to The Hartman Group.

Mentioning that they are creating new value added products in all the categories, Mr. Sharma said that they are going to roll out veggie idli and veggie vermicelli in three variants — beetroot, carrot and spinach. “Cereals have always been considered as healthy breakfast options when compared to our breakfast. We want to change this notion with our new variants. In Tamil Nadu, wet batters have been a hurdle to our growth.

States have also been requested to keep a close watch on hoarding and black marketing of essential commodities in view of coming festival season. Besides regular raids, strict action should be taken against the habitual violators and speculators under the EC Act and PBMMSEC Act which provides for preventive detention up to six months.

Rise in global premium food sales

MTR Foods focuses South to strengthen market share

engaluru-based ready-to-eat packaged food maker MTR Foods Pvt. Ltd.which makes spices and masalas, breakfast, desserts, beverages and ready-to-eat foods, is a subsidiary of Norwegian conglomerate Orkla, is focusing on Southern states to strengthen its market share and business volume.

all the stake holders to cap the prices of essential commodities.

Premium products can help manufacturers boost sales regardless of retail channel, as they increased their share across all retail formats last year, according to IRI. Wine, yogurt, chocolate candy and beer had the highest premium product share overall. Outside grocery and natural food stores, convenience stores saw the highest premium sales in the wine and energy drinks categories, while natural cheese, yogurt and wine drove premium sales in drug stores. It's notable for manufacturers that better ingredients

Beverages & Food Processing Times

Specialty food sales hit a record high of $120.5 billion in 2015, a 21.2% increase in dollar sales and 13.7% in unit sales over the two years before, according to the Specialty Food Association. Consumers most likely to buy gourmet foods were aged 25 to 44, followed by those 18 to 24. These groups were more likely to buy gourmet snacks, drinks and easy meals. Older consumers, who tended to purchase gourmet foods less often, were more likely to buy specialty foods and ingredients for meal preparation.

Vol. 9, Issue 03 - August - 2016

TRADE NEWS

Arab & India Spices expand facility in UAE

n Indian-owned food importing company has launched its new the food production facility in in Ajman UAE, built with an investment of Dh 350 million/$95.2 million. With the expansion of its production facility, Arab & India Spices (AIS) eyes an annual turnover of Dh1 billion ($272) million billion starting from this year.

The 70-year-old company is one of the first and largest firms that sources and processes a range of pulses and ground spices in the Gulf. The company records the largest import of pulses, lentils, spices and rice from various sourcing points around the world with hundreds of tonnes of foodstuff being imported annually to the GCC.

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Harish Kumar LalTahiliani, Managing Director of Arab & India Spices, said: "This new facility is an extended version of AIS' existing state-of-theart food processing plant in Ajman. AIS began in a 400 square feet facility in the UAE and now it operates a 400,000 square feet production.

Mondelez to expand presence in China as global revenues tumble

hina would be a crucial source of growth for Mondelez at this point. Sales fell in all markets but North America, which gained 0.4%, ranging from a 0.1% dip in Asia Pacific to a 32% plunge in Latin America. In April, Mondelez partnered with Alibaba Group, China's e-commerce leader, to host a store for its products on Alibaba's Tmall.com platform. Mondelez reported a 16% increase in diluted EPS for the second quarter to $0.29 per share, though net revenues fell 17.7% to $6.3 billion. Organic net revenue growth came in at 1.5%. The company also announced its forthcoming launch of the Milka chocolate brand in China and its "substantial investment in e-commerce" as evidence of sustainable growth opportunities, Mondelez chairman and CEO Irene Rosenfeld said in a statement. Currency headwinds and loss of revenue from Mondelez's divested coffee joint venture and Venezuela deconsolidation had a negative impact on revenue, but the company expanded its adjusted operating income margin by 210 basis points to 15.2%. The announcement hinted at Mondelez's interest in this $2.8 billion market, where consumers shop online for groceries more commonly than in the U.S. This has encouraged other companies, such as Nestle and Mars, to also expand their e-commerce efforts in the region. While Mondelez was able to expand its adjusted operating income margin, no adjusted operating income margin was down 90 basis points to 10.1%. Mondelez's profitability has taken a hit in recent quarters from divestments, so its unclear how investors will read into the numbers and whether they will continue to suggest Mondelez sell it.

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Hydrolysed Vegetable Protein. (HVP) (Non GMO Soya Base) Hydrolysed Vegetable Protein. (HVP) (Non GMO Ground Nut Base) Hydrolysed Vegetable Protein. (HVP) (Non GMO Wheat Gluten Base) Yeast Extract Powder ( High / Low NaCl Content) Malt Extract Powder.

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Behind ST. Stand, Hanuman Nagar, Malkapur, Dist. Buldana. Maharashtra Phone: 07267-223239 Mobile: +91-9823563605 E mail: mktccm@gmail.com, mktcabt@gmail.com Web: www.chaintanyachemicals.net

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

FOOD INGREDIENTS NEWS

Consumers are willing to pay more on natural ingredients: Research In a recent survey commissioned by Lycored, the global leader in carotenoids consumers are willing to pay more on a natural ingredients product. Consumers are happy to pay a premium of nearly 50% for food and drink formulated with natural ingredients.

Secondly, they find natural colors more appealing from a visual perspective. For food and beverage manufacturers there is a clear message here: using natural ingredients in formulations will resonate with shoppers and enable you to charge more for your products, boosting sales and profits.”

In the online poll, researchers asked 506 US consumers whether they would be prepared to spend more on a product if it was made with natural flavorings and colors. In total, 88% said they would.

Lycored also evaluated the performance of its natural colors in tests that replicated the harshest possible conditions during transportation, storage and while on sale in-store. The UHT strawberry milk drinks were exposed for extended periods to 24/7 light (6,000 lux), ambient temperatures of 25°C-40°C (in normal day/night light patterns), and continual incubation at 40°C (in the dark).

The group of consumers was then told that the average flavored milk beverage costs US$1.50 and they were asked how much they would be willing spend on a product if it was made with natural ingredients. On average, they said they would pay up to $2.20 – 47% more. In tandem with its consumer research, Lycored ran a trial to establish the stability of its natural colors following UHT processing, which is commonly used in the manufacturing of flavored milks. Lycored used two different UHT process technologies to make strawberry flavored milk drinks: direct injection and tubular. Subsequently, the beverages were subjected to accelerated shelf life tests. In each case, it was observed that the products made with Tomat-O-Red® RP and TomatO-Red® R exhibited excellent color stability, with no variation visible to the naked eye. By contrast, the color of the flavored milk made with Red 3 varied dramatically from day zero onwards. The survey also found that the respondents preferred the appearance of natural colors even when they were not told they were natural. The researchers asked the respondents to express their visual perceptions of naturalness when presented with two flavored milk drinks formulated with Lycored’s Tomat-O-Red® natural colors and another made with Red 3, an artificial colorant. They were not informed which was which, and were asked to rate them on a 10 point scale in which 0 was ‘not at all natural’ and 10 was ‘extremely natural’. Christiane Lippert, Head of Marketing (Food) at Lycored, said: “Our research delivers two key learnings. Firstly, consumers are willing to pay significantly more for the reassurance that a product contains natural colors and flavors.

In all cases, the resilience of Tomat-O-Red® colorings was demonstrated by little or no variation in the color of the milkshakes they were used in, while the flavored milks made with the artificial color, Red 3, displayed marked variations. Tammi Higgins, Head of Colorants at Lycored, commented: “Color stability is a priority for food and beverage manufacturers and these tests prove that Tomat-O-Red® natural colors will withstand even the most difficult conditions over an extended period. This eliminates the need for expensive chilled storage and transportation, and reduces wastage. Most importantly, it means brands can be certain that their products will be enjoyed by the end-consumer exactly as they intended.” Lycored’s Tomat-O-Red® natural red colors are certified Kosher, Halal, non-GMO and vegetarian, and are heat, light and pH stable. Visitors to IFT Expo 2016 are invited to visit the Lycored stand (4457) to learn more. Committed to ‘Cultivating Wellness’, Lycored is an international company at the forefront of unearthing and combining nature’s nutrition potential with cutting edge science to develop natural ingredients and products. Established in 1995, Lycored is the global leader in natural carotenoids for food, beverage and dietary supplement products. The company develops and supplies natural ingredient formulations into four main business areas: active health ingredients for wellness; colourings; foodstuff ingredients for taste & texture improvement; and nutrient premixes for fortification. Lycored is based in Israel, with sales & production operations in the UK, Switzerland, the US, Ukraine and China.

Artificial dyes still in many products for kids

rtificial food dyes, including Red 40 and Yellow 5, are in 43% of products marketed to children, according to research published in the July issue of Clinical Pediatrics. Almost all candies had artificial dyes, which were found in 96% of products. Fruitflavored snacks had the next highest proportion of the dyes; with 95%.The 810 products sampled for the study were produced by 66 companies. Kraft made 105 of the products, 66% of which contained artificial dyes. While many manufacturers have put considerable time and investment into developing natural color replacements, there is much work to be done. The Center for Science in the Public Interest has petitioned the FDA to ban certain dyes, and has submitted more than 2,000 complaints from parents think their children were adversely

impacted by the dyes, leading to behavioral problems. The organization has suggested warning labels that would read: "Warning: This food contains synthetic food colorings that may impair the behavior of some children." However, a certain amount of artificial coloring may always be around. Although the demand for natural ingredients will continue to grow, there will always be a need for a certain amount of what may be described as synthetic ingredients. Natural colors aren't asstable as artificial colors, and costs of using natural colors can be higher.

Youth shifting towards healthy and nutritious snacking: Survey

recent survey conducted in 8 Indian cities indicates a positive shift in mindset towards healthy snacking 97% of young and affluent Indians prefer to snack on almonds, fruits and other dry fruits when they are happy. According to the survey young and affluent adults see their snacks as something yummy, fun, hot and crispy, while also wanting it to be healthy, nutritious and energy inducing. The survey interviewed a total of 3,037 affluent urban men and women between 18-35 years in Delhi, Mumbai, Bangalore, Hyderabad, Chandigarh, Nagpur, Bhopal and Coimbatore. Among cities, Bangalore (99%), Chandigarh (99%) and Coimbatore (99%) prefer almonds for snacks when happy, the survey showed. "For majority of young and affluent adults snacking is an expression of happiness. When young and affluent Indians are happy, 97% of them prefer to snack on almonds, followed by fruits and other dry fruits," a survey by market research company Ipsos said. The findings also revealed that 30% of people tend to snack more when under stress, even when they are not hungry. Interestingly, it found that Mumbai, Chandigarh and Bhopal are least inclined to snack

under stress while Bangalore and Hyderabad are most susceptible to stress snacking. The survey further said that unlike popular perception, a whopping 82% of young and affluent adults polled said they do not feel the guilt after snacking. Mumbai leads with 92% saying they do not feel guilty after snacking, followed by Chandigarh (86%) and Coimbatore (85%). "This study indicates a trend towards healthy snacking with increasing number of young and affluent adults in urban centres seeing longterm value in maintaining a healthy lifestyle that includes healthy snacking," Delhi-based nutritionist Ritika Samaddar said.

New Delhi welcomes UBM India’s Fi India & Hi for the first time in North India

BM India, India’s leading exhibition organizer announced the 11th edition of Food ingredients India & Health ingredients (Fi India & Hi). The 2016 edition of Fi India will be held in New Delhi on 22nd -24th August 2016 at Pragati Maidan. The expo will now be annually rotating between India’s two unique promising food hubs i.e Mumbai and New Delhi. The 2016 edition of Fi India & Hi in New Delhi will offer opportunities to industry players to take advantage of the growing food manufacturing hub in Northern India. Powered by 11 years of industry experience, Fi India will once again feature 3 days of free, on-site seminars on health ingredients, food processing and packaging. The seminars will be organised in association with a variety of Indian associations and will cover both technical developments and market trends. Day 1 will feature technical sessions on health and nutrition that will be conducted by by Health Foods & Dietary Supplements Association (HADSA). For the first time, HADSA will impart Omega 3 based product training at Fi India Conference. Day 2 will see a National Seminar conducted by All India Food Processors' Association (AIFPA). Day 3 will see sessions on innovations, new & emerging trends in food processing and packaging. In addition to the power-packed seminars, the expo will also feature Expo Foodtec Pavilion dedicated to Food Technology – Processing and Packaging companies, a China Pavilion by CCCHMPIE and an AIFA Pavilion featuring food processing companies. For the third year, Fi India & Hi will feature a two-day Free Bakery Workshop ‘All about Doughnuts’ in association with Assocom Institute of Bakery Technology & Management (AIBTM), a comprehensive teaching, training and research centre specifically for baking technology and allied disciplines. The workshop will include both

Beverages & Food Processing Times

seminars and demonstrations that will include topics such as Food Safety, Food Sanitation & Quality control, Importance of Decoration, Handling of Doughnuts and Packaging and demonstration on snacking doughnuts. Bakery Championship will be conducted on the third day to encourage and felicitate skills among bakers through live competitions. The expo will also feature an Innovative product showcase that will highlight the exhibitors leading the way in innovation in the industry and an Innovative Ingredients Championship. As a pre-cursor to the expo, UBM India and Fi India will inaugurate the first ever Fi Pre-Connect Congress, a platform to discuss and ideate the scope of Indian food manufacturing industries, challenges faced in safety and regulatory aspects, cutting edge insights on new technologies, innovative business-marketing strategies and other trending topics. Speaking on the announcement of Fi India & Hi 2016, Mr. Yogesh Mudras, Managing Director, UBM India said, “With the food processing industry witnessing an exponential growth in Northern India and being a high priority sector for states such as Punjab, Haryana, New Delhi, Jammu & Kashmir and Uttar Pradesh, this year, we have moved the expo to New Delhi to tap that market. Fi India & Hi is a truly international show with a mix of domestic and international participants gathering for three days under one roof to discover and develop businesses.” “As a pre-cursor to the expo, this year will also see the launch of Fi Pre-Connect Congress on 20th August , that will consist of interactive industry panel discussions and keynotes from eminent industry experts. The Pre-Connect congress will have well-crafted sessions that will discuss the scope of Indian food manufacturing industries, challenges faced in safety and regulatory aspects, innovations and technology, business-marketing strategies and other trending topics.” He added.

Vol. 9, Issue 03 - August - 2016

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

CHOCOLATE NEWS

In chocolate revenues Ferrero overtakes Nestle in India

CVC expands its probe in Rs 580 crore excise duty evasions by Cadbury

xpanding its probe, the Central Vigilance Commission (CVC) has sought relevant information from the US authorities in connection with its investigation into alleged Rs 580 crore excise duty evasion by confectionery giant Mondelez, maker of Cadbury chocolates. The demand of about Rs 580 crore was raised last year against Mondelez India Foods Pvt Ltd, erstwhile Cadbury India Ltd, for allegedly evading excise duty by fraudulently taking exemption for one of its "ghost" production units in Himachal Pradesh's Baddi area. The request has been made under the Mutual Legal Assistance Treaty (MLAT) that generally allows for the exchange of evidence and information in criminal matters. They said the authorities here also plan to get some information regarding the company and its activities from the US markets regulator, the Securities and Exchange Commission (SEC). The CVC is looking into the role of central and state government officials who might have facilitated the alleged evasion. The Directorate General of Central Excise Intelligence (DGCEI) here had in 2011 initiated a probe against the company for allegedly misusing "area-based exemption" for its new unit in Baddi,

even before it came into existence. As per norms, the area-based exemption for new industrial units of firms in Himachal Pradesh entails full exemption from excise duty for production of specified goods for a period of 10 years. However, for availing such exemption the unit should have been established before March 2010. During investigation, the DGCEI officials allegedly found that Mondelez claimed excise duty exemption for its new unit in Sandoli village in Baddi relating to a period even before it came into existence, they said.

talian chocolate maker Ferrero India, the maker of Kinder Joy chocolates and Nutella chocolate-hazelnut spread, posted revenues of Rs 929 crore during the seven months ended March 2015. The company changed its accounting year from August in 2014. Brands like Ferrero with no historic baggage has discovered and led the top down approach of premiumising through innovation versus old school thinking of focusing mainly on low priced products. Ferrero has shown that there is a large market even at the top end.

In the filing made in February this year, Mondelez International had disclosed that it was facing investigation under the Foreign Corrupt Practices Act (FCPA) of the US in connection with a facility in India which it had acquired as part of the Cadbury takeover. After a long takeover battle, Cadbury was acquired in 2010 by the erstwhile Kraft Foods which later adopted a new name, Mondelez International. However, Cadbury brand has been retained for various products. Mondelez India said they will cooperate with the authorities concerned and that its executives acted "in good faith and within the law" in the decision to claim excise benefit.

Nestle's chocolate division, which sells Kit-Kat and Munch among other brands, had revenue of Rs 1,110 crore in calendar 2015. Just three years ago, Nestle's chocolate business was three times that of the Italian company. Mondelez, which sells Cadbury chocolates, still dominates the segment with annual revenues of over Rs 6,500 core. Experts attribute this to Ferrero's differentiation strategy. According to a recent report by Nomura, Nestlé’s

portfolio issues lead to revenue declines and market share loss. Growth in the chocolate and confectionery business for the company has been in decline since calendar 2010, but revenue has declined from calendar 2013 onwards. Reasons for this decline are portfolio optimization in chocolates, as well as seeking premiumization at a time when demand was slowing. That apart, the failure to innovate beyond the wafer segment when consumer tastes were evolving is also blamed for the growth decline. Nestlé’s market share in chocolates has fallen from 29% in 2006 to 14% now, as per Euromonitor data. Leaders such as Mondelez have introduced smaller stock keeping units (SKUs) at lower price points and increased penetration into rural India even as slowdown in consumption and the lowering of discretionary spend affect several food categories including chocolates. Ferrero has been aggressively investing too — it passed a resolution to invest Rs 375 crore in the Indian arm and double its authorised capital to Rs 1500 crore, as per latest regulatory filings last submitted last week. Around nine months ago, it had raised its borrowing limit to Rs 2,500 crore and said it will invest Rs 367 crore. The Indian unit of US-based Mars Inc, too, has announced an investment of Rs 1,005 crore to set up manufacturing plant in Maharashtra, while Mondelez has invested $190 million to open a manufacturing facility in Andhra Pradesh, its largest in the Asia-Pacific Region.

Campco to launch Mondelez India launches chocolate safe for diabetics Cadbury Dairy Milk

angalore-based Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd to launch a chocolate that will have sugar made from 'Neera' or sap of coconut palm. Consumers may no longer have to worry about calories while eating chocolates and will also be safe for consumption even for diabetics.

At present, only a handful of Neera producers in the southern states, particularly Tamil Nadu and Kerala, are engaged in manufacturing by-products like sugar, honey and jaggery from Neera.

Vinod Kumar P, CEO of Palakkad Coconut, said, "We make sugar and honey .

M Suresh Bhandary, managing director at Campco said, "It is a good chocolate from health point of view but comes at a higher price, which will be almost double that of the normal chocolate. Campco are introducing milk chocolates and chocolate beverages using Neera sugar.

unique formats and eat experiences and given our global leadership in chocolate, we are well positioned to identify and bring some of our world leading brands to India," said Prashant Peres, director-marketing (chocolates) at Mondelez India.

Major coconut producing countries like Indonesia and the Philippines have dominance in value-added products from Neera, which are mostly exported to the US and Europe. They go into the making of confectionary and cookies. Palakkad Coconut Producers Company in Kerala makes Neera using the 'ice box' technology. Its current production is 500 litres a day and it is one of the suppliers shortlisted for supply of Neera sugar to Campco.

Neera sugar, prepared using a technology developed by Central Plantation Crops Research Institute (CPCRI), has low glycemic index and, hence, can be consumed by those having high sugar levels.

Marvellous Creations

The sugar is costly, selling at Rs 400 per kg and, hence, is difficult to sell in the market. But during Christmas time, we had orders from lot of cake manufacturers. CPCRI has developed the technology for extracting unfermented neera from coconut palm. Usually, neera gets fermented soon after extraction, making it unsuitable for producing sugar. CPCRI's technology uses a container with ice cubes for keeping neer a unfermented in a cold state for a longer time.

This is Mondelez's third launch within a year after Bournvita biscuits and Oreo Gold even as demand for most discretionary products is hit due to a slowing economy.

fter the successful launch of its centrefilled chocolate - Caramello and aerated chocolate variant Bubbly, confectionery giant Mondelez India has launched the 'marvellous collection' from its global portfolio under its flagship Dairy Milk brand, a move aimed at increasing sales in a slowing consumer market. Marvellous Creations will be available across all major urban and rural retails from mid-August. Interestingly, the range will be available in select cities before the mass launch on Amazon, starting August 10. The chocolate bars will be available in two variants, one with jelly beanies, gems and popping candies, and the other with cookie nut crunch. "Indian consumers now demand

Beverages & Food Processing Times

Mondelez grew the slowest in more than a decade in 2014-15 at 12.5% although rival Ferrero managed to grow over 60% through aggressive innovations despite premium pricing. Mondelez controls about two-third of India's confectionery market worth Rs 7,500 crore.

Vol. 9, Issue 03 - August - 2016

NEWS

Elanpro launches a representative line of confectionary showcase

lanpro, India’s leading commercial refrigeration company, recently announced the launch of ELANPRO BAKESHOP DC SERIES (EDC), a confectionery showcase range characterized by sinuous forms and high performance. A new line of professional showcases with exclusive finishing, high flexibility and perfect visibility of product displayed, ELANPRO BAKESHOP DC SERIES (EDC) is available in five models- Curved glass, Flat glass, 270 degree display (four side display), Counter top display(available in hot, cold and ambient display options)and Grab and Go Cooler- an open deck design. Elanpro Bakeshop Dc Series (Edc) blends high technology and aesthetic appeal leading a customer’s eye directly to the exhibited products. The cabinet optimally stores confectionery products in cold, hot and ambient temperature with a particular focus on temperature suitability and ease of use. The range introduces a new led lighting system that offers low consumption and a great product’s display enhancement. The models also feature perfect refrigeration performance, greater capacity and integrated doors. The range is equipped with adjustable shelves enabling easy insertion and accommodation of the bakery trays. It is cohesive of imported DGU glass for better insulation and visibility. The high-quality stainless steel finish of the containers and removable cooling systems enables easy cleaning and servicing. It also comes with anti- mist system on the front and the back. The beautiful squared and curved surface showcase by ELANPRO is furnished with a new sliding system of the glass structure. The 270 degree display (four side display) has an exclusive digital control system with temperature display in front and back for efficient refrigeration. Temperatures in can be individually adjusted, depending on the model. The series is also equipped with highly efficient, energy-saving fans to provide indirect air circulation that ensures optimized cooling within the interior and gentle cooling of delicate food products. The products are developed for use in hot, ambient and cool temperature conditions ranging from -4°C to 8°C. Speaking at the occasion, Mr. Sanjay Jain, Director, Elanpro said, “We believe that we can instill evolutionary changes by combining creative artisanal mastery with efficient industrial facilities. Keeping the same in mind, we bring the most innovative designs and technologies to the Indian market.” He added, “Refrigerators and freezers in bakeries and patisseries have to cope with a whole host of demands including high ambient temperatures, dust and flour in the air, and frequent opening and closing. Professional appliances have to be convenient to use and easy-to-clean; and they need to operate reliably and economically with low energy consumption. Elanpro bakery appliances are tailored to precisely to meet these requirements. With this range the professionals will get an expression of high performance technology and aesthetics. Every sweet specialty will meet its perfect displaying condition with ELANPRO Display Cabinet series.”

ELANPRO BAKESHOP DC SERIES (EDC) for bakeries and patisseries combine robust construction and easy – to- clean maintenance and highly efficient refrigeration performance. Whilst the technology offers a very high degree of efficiency and functionality, their housing demonstrates robust design, making them perfect for exacting professional use. The homogeneous refrigeration range also boasts of high compositional flexibility with two lengths for linear modules and a curved element. The components used are of exceptional quality, ensuring that these appliances can confidently withstand the hectic routines of everyday working life available in elegant linear version and in the sinuous shapes of curved modules.

High yield may boost soya trade

ncreased area under cultivation and sufficient rainfall across the country may be a reason for the smile on the faces of Soyabean traders and processor. Traders expect better domestic and overseas sales this year as the crop has been planted on 10.61 million hectares of land, a 1.2 per cent increase over the previous year. Industry experts believe that the production this fiscal could cross 9 million tonnes after the average rain in September. In 2015-16, soyabean production stood at 7- 7.5 million tonnes, down from 2013-14's level of 11-12 million tonnes. Traders and processors expect prices to fall once the crop is harvested, as the current price of Rs 3,700 a quintal is unlikely to support exports. "Export of soymeal and other value added products will be better than last year, and so will domestic

Beverages & Food Processing Times

consumption from poultry industry, with hope of a good crop," said Satendra Agrawal, operations head at Ruchi Soya Industries BSE -2.08 %. "Countries like Iran, Middle East and China want Indian soyameal crop as we are non GMO," he added. Chairman of Soybean Processors Association of India Davish Jain expects that country will export 3-4 million tonnes of soyameal, compared to 0.4 million tonnes last year. Orders from Iran may rise after the Prime Minister Narendra Modi's visit to the country in May. Jai said that we are requesting the government to increase custom duty on imported oil as Indian meal prices will decrease and we can further export. The current import duty on crude soyabean oil is 12.5 per cent, which industry feels should be above 30 per cent.

Vol. 9, Issue 03 - August - 2016

BEVERAGE NEWS

Coca-Cola to launch more ZERO in India

fter the success of its flagship product “Coke Zero”, the Coca Cola India is planning to launch more low-calorie drinks, marketed as ‘Zero’ beverages, in the country. The company has been test marketing Sprite Zero in India for the past few months, and the product is available on mobile app Grofers, on-demand delivery service. Low-calorie beverages in Coca-Cola’s global portfolio also include Fanta Zero. The world’s largest beverage company launched its lowcalorie drink Coke Zero in September 2014. Within the first two weeks, it sold one lakh cans on online marketplace Amazon, and Coke Zero crossed Rs.100 crore sales in the first eight months in general trade.

“There’s health consciousness, and people are opting for low-calorie drinks. We have a few low-calorie drinks like Coke Zero that we sell in different markets. We are evaluating, but are yet to finalise which one to launch,” said Venkatesh Kini, president, Coca-Cola (India and south-west Asia). According to Nielsen data the market for lowcalorie (diets and lights) sparkling drinks has been growing fast. The growth rate jumped to 39% between September 2014 and August 2015. However, the company refused to develop low-calorie versions of beverages Thums Up, Limca, Gold Spot, Maaza and Citra. Coca-Cola India is also planning to launch a few more non-cola aerated beverages with fruit juices next year after FSSAI, finalizes guidelines for the category. Coca-Cola now sells only one such product in India -Fanta Green Mango.

Real, Slice push Coke and Pepsi out of top 5 selling beverage brands.

onsumers opting for healthier and functional beverages pushed fizzy drinks Coca-Cola and Pepsi out of the top five highest sold beverages across modern retail chains in the first half of 2016, according to Nielsen data. This is the first time both have failed to make the top five. Real juices topped the list with 8 per cent share, while Coca-Cola the highest selling fizzy drink brand of last year had a share of only 4 per cent, data showed. Juice drinks such as Real, Slice and Tropicana, growing much faster than the aerated drinks segment that continue to post mid-single-digit growth of 4-6 per cent. Some online retailers too said juices and healthier drinks are outselling fizzy beverages. According to data shared by industry officials, Dabur's Real, Mondelez' Tang powder drink, PepsiCo's Slice mango drink and Tropicana juices, and Hamdard's rose drink Rooh Afza were the topselling beverages across modern trade in the first six months. Devendra Chawla, president for food and FMCG at Future Group, and Vipul Parekh, cofounder of online supermarket Bigbasket.com, confirmed this trend.

The officials clarified that the data is only for modern trade, and aerated drinks could be selling more across general trade, helped by their significantly bigger base. "The past few decades saw high-decibel marketing and commitment of resources from global brands, but consumers are going back to favouring what they perceive are healthier and traditional flavours," said Devendra Chawla of Future Group. Parekh said, "Juices and juice-based drinks are growing about 2.5 times faster than aerated drinks - we are observing this trend over the past six months." He added that consumers are showing an inclination to healthier foods and beverages. However, Thums Up and Maaza continue to be amongst the top 5 non-alcoholic ready-to-drink brands in modern trade according to a survey. Dabur's Real juice brand, launched in 1998, has now crossed Rs 1,000 crore in sales. Company Chief Executive Sunil Duggal attributed its increasing popularity to the brand's more than 30 variants with Indian tastes and its communication with stress on freshness. Real's Indian flavours include guava, litchi, mausambi and coconut water.

Dabur is launching fruit-based carbonated drinks

o cater to customers wanting fizzy beverages without feeling guilty about consuming them Dabur is launching fruitbased carbonated drinks. The move comes almost two years after Prime Minister NarendraModi first urged cola companies to add fruit juice to their fizzy drinks. The current rules stipulate that a minimum 10% fruit juice or pulp (5% in the case of lemon) is required to be classified as a carbonated fruit beverage. Dabur's new range called Real VOLO - (V Only Live Once) will contain 20-25% fruit juice. Dabur, which reported net sales of Rs 8,436 crore in 2015-16, isn't the only one in the market for fizzy fruit drinks in India. Coca-Cola is piloting Fanta Green Mango, a carbonated beverage with

Rooh Afza may come in Tetrapaks

higher fruit content. Both will be up against Parle Agro'sAppy Fizz, the leader in the category. Dabur controls more than half the fruit juice market and had launched a similar product in 2011, which was discontinued after few months of test-marketing. The company said consumers are now gradually accepting differentiated products in the fizzy drinks category, which is still dominated by cola flavours. However, a recent Euromonitor report suggests that juice-based carbonates are not very popular, even as some companies attempt to enter the segment each year. Demand for low-calorie carbonates remains limited to a small niche of health-conscious consumers who primarily belong to the upper-middle class.

said that the attempt is made to deseasonalise Rooh Afza and move beyond the 'summer, Ramzan' positioning, to be seen also as a non-alcoholic mocktail mixer or a dessert topping "One critical thing missing is that we're slowly losing relevance with the youth in a much cluttered beverage space. There's a reticence in reaching out because Rooh Afza is not 'cool'. This move will hopefully address that gap," Ali said.

he century old rose-drink Rooh Afza will soon be sold in modern and general stores in ready-to-drink single-serve Tetrapaks or PET bottles. Brand Rooh Afza, with close to Rs 300 crore in sales, will soon be sold in modern and general stores in ready-to-drink single-serve Tetrapaks or PET bottles, in different citric flavours like lemon or orange, to compete with names such as Tropicana juices and Paperboat as the market for functional beverages grows at twice the size of global fizzy drinks though on a smaller base Hamdard sales and marketing head Mansoor Ali

He added the "The consumer is not moving around with the product. Rooh Afza is a very in home consumption product. We have the marker red identity which sits separately on the shelf but we can't sit on those laurels for too long," Ali said. The 110-year old unlisted herbal products company, which closed March 2016 with consumer products sales of Rs 620 crore, is revamping to keep up with intense competition in spaces it operates in. In a simultaneous move, Hamdard is kicking off a retail venture under which it will set up 8-10 wellness centres over the next 12 months, starting with DELHI, Hyderabad, Patna and Kanpur. These wellness centres will sell all company therapy rooms and doctors on board, he told.

PepsiCo, Coca Cola and Bisleri get clean chit from FSSAI for their packaged water

he three players -- PepsiCo, Coca Cola and Bisleri -- command 60 per cent market share in the packaged drinking water segment and have got a clean chit from food safety regulator FSSAI for their packaged water facilities, although crackdown is underway on some smaller players lacking valid manufacturing licenses.

of companies not having valid licence. But they figured in the media reports. So, we asked them to submit the details.

Last month, FSSAI had asked state authorities to crackdown on mineral water packaging units that are operating without its licence. As many as 75 per cent of the packaging units owned by various firms were said to be operating without an FSSAI licence. These units were operating under a BIS certification.

FSSAI had asked the three companies to submit all the details of various manufacturing/processing units including third party manufacturer and processors after they claimed that they have valid licences by FSSAI and BIS.

FSSAI CEO PawanAggarwal said, PepsiCo, Coca Cola and Bisleri names were not in the list

PepsiCo sells its packaged water under the brand name Aquafina, Coca-Cola sells under the name Kinley, while Bisleri sells packaged water under its own name.

Out of total 5,842 registered water packaging units, 1,495 units have both BIS and FSSAI licences, while 4,347 units have only BIS certification.

Coca-Cola India to get its first woman CFO, as SarvithaSethi

or its central and southern Europe operations, Coca-Cola India is set to get its first woman CFO, as SarvithaSethi, commercial finance director will shortly take over the reins from Sanjeev Kumar, VP finance for India and South West Asia for Coca-Cola. Sethi will be the only woman in VenkateshKini, president of Coca-Cola India and South West Asia's core leadership team and is being viewed as part of a recent movement by top companies to hire more women as decision makers,.Kumar, on the other hand, will become Coca-Cola's finance director of South and East Africa business unit, which has over 35 countries under its fold. The Indian arm of the Atlanta-based beverage maker will be promoting three of its top executives from its bottling unit Hindustan Coca-

Beverages & Food Processing Times

Cola Beverages to head bottling operations in global markets. Hindustan Coca-Cola, which is company-owned, accounts for 65% of CocaCola's production in the country, while the rest comes from 13 franchisee-owned bottlers. Globally, under pressure from investors to reduce cost, Coca-Cola is in a race to divest companyowned bottling operations. The heavy movement of Indian bottling talent overseas is being hailed by industry experts as a step by the company to better align its operating units against its global bottling footprint. Over the last six years, more than 75 Indian executives at Coca-Cola, have found roles outside India, some of them even choosing to come back to India after a successful period.

Vol. 9, Issue 03 - August - 2016

FOOD PROCESSING NEWS

Amalgam group to roll out string of exclusive frozen food stores across the country

malgam Frozen Foods, a part of seafood export major Amalgam group, is bringing a string of exclusive frozen food stores across the country aimed at providing frozen food without deterioration of quality through temperature fluctuations. Opening from Kochi, the company will open stores in other cities of Kerala and south India and will cover all the major cities in India in three years. The initial investment expected is Rs 25 crore. Amalgam Frozen Foods will sell the group's own Buffet brand and other brands direct from the company's frozen food factories to consumer under perfect temperature conditions. The company intends to sell a range of frozen foods from ice creams, parathas, seafood, meat and vegetables. Though the frozen food sector is growing annually at 20% in the country, it is largely accounted by ice creams and green peas. Home delivery and e-commerce are on the radar of Amalgam. Once the facilities are ready they will be tying up with of a good e-commerce company. Amalgam group will meet European and US FDA requirement and will be frozen, stored, transported and delivered to the customer at -20 degree Celsius.

Industry bodies seek changes in Odisha food processing policy

ndustry associations in Odisha have suggested for enhancement of capital investment subsidy to a maximum of Rs 10 crore at the rate of 25% for general category entrepreneurs from the present limit of Rs two crore as promised in the Odisha Food Processing policy -- 2013. The industry bodies have sought to amend the policy for bringing it in tune with the Industrial Policy Resolution -- 2015. They have also suggested for giving capital investment subsidy at the rate of 33% for units promoted by SC (scheduled caste), ST (scheduled tribe) and units set up in the KBK (Kalahandi-Balangir-Koraput) districts. Associations have sought reimbursement of 75% of course fee limited to Rs 50,000 per course, as entrepreneurship development subsidy, for the budding entrepreneurs to undergo management development training in reputed national level institutions for creating a culture of entrepreneurship in the state. They have suggested incorporating employment cost subsidy in the existing Food Processing Policy-2013. Besides this, they have pitched for reimbursement of 75% in case of male employees and 100% in case of female employees of the expenditure on account of contribution towards ESI (Employees' State Insurance) and EPF (Employees' Provident Fund). The employment cost subsidy for an additional period of two years is sought to make the policy in conjunction with the IPR-2015. Food processing sector has been identified as one of the priority sectors in IPR-2015. It may be noted that the sector specific policy of 2013 policy promises a capital investment subsidy upto 20% with a maximum limit of Rs 15 crore to the special purpose vehicle to develop mega food parks and sea food parks in the state.

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

EXCLUSIVE STORY

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

RoohAfza new flavours Excerpts from the interview of Mansoor Ali,

www.agronfoodprocessing.com

ST is a great step by Team India, great step towards transformation. This can’t be seen as a victory of a party or government, it is a win for the democratic ethos of India’’ GST Bill has been passed by Lok Sabha and according to, PM Modi it will end tax terrorism. Well undoubtedly India is trying to align itself with new taxation regime which intends to bring in uniformity in taxes. The message that the government wants to give to the public is that the ‘consumer is the king’ and so the prime minister said…. ‘’If we utilize man, machine, material, money and minute (time), we will not need any other policy for economic advancement’’. With GST, the states will earn more and there is a need to strike a balance between the economy of western India and eastern India. Strength of GST is technology, as it will have real-time data. Most of the things that can impact consumers and inflation have been kept out of the ambit of GST. I think it’s a good step for the country, but the issue on the 18% cap on the rate of GST, is still a matter of concern for many industry. However the bill is welcomed by nearly all the manufacturers but the food processing and dairy industry is very cynical about the tax rate as it would directly be burdened on the consumers and affects the farmers. A GST Council will be formed with states and the centre as members. This council will recommend rates and other modalities for GST, which will replace a raft of different state and local taxes with a single unified value added tax system turning India into world's biggest single market. Let’s see what the implementation of GST brings for the food industry! All the same, the food processing sector never tends to bore me! As it constantly thrive in development and progress. India is developing two large food processing parks close to port areas of Vishakhapatnam and Kakinada port in Andhra Pradesh and in the coastal economic zone of South Konkan in Maharashtra to Dighi, Jaigarh and MarmugaoPortof. This is to help grow its food processing export sector as well as support efficient supply chain operations for food imports and distribution to the domestic market. The food processing sector needs to be efficient in terms of logistics costs, transit costs and infrastructure facilities in order to be competitive. The proximity to various ports will provide necessary infrastructure facilities and hinterland connectivity, thus ensuring a reduction in logistics costs.The parks are expected to create direct employment opportunities for around 30,000 people and generate average annual turnover of around $65 million to $75 million. And now coming to chocolatesAh!Import and sale of chocolates containing vegetable fats were not allowed in India, but now FSSAI has decided to allow up to 5 per cent vegetable fats and artificial sweetener Isomaltulose in chocolates, a move likely to benefit importers.Currently, FSSAI allows use of cocoa butter in chocolates and not vegetable fats, whereas international food standards authority Codex permits 5 per cent vegetable fats. Use of vegetable fats in chocolates has been a bone of contention in imported chocolates as number of companies had their consignments withheld at the ports because of non-compliance of Indian standards for chocolates. Import and sale of chocolates containing vegetable fats are not allowed in India, some brands are selling them without using the term 'chocolate' on the packaging. Kashmir is going through a sad a rough phase and due to that many food business have been affected in that region and of course crop damage in Himachal Pradesh. Apple is the major horticultural crop of both Himachal and J&K. Companies engaged in apple trading and in marketing of branded apples are preparing for a harder time, due to tepid arrivals in this season, after a record crop in 201516.The agricultural division of Mahindra & Mahindra, which sells branded apples, plans to import more and Adani Agrifresh, with an 80 per cent share in Himachal's organised apple market, has been pulling all resources to procure the targeted 25,000 tonnes. Sources in the company say damage to the crop in the state has been colossal in the lower and middle elevations; they are concentrating on higher elevations. Prices have shot up due to supply constraints. Britannia Industries is planning to foray into other food segments in the coming years and has undertaken a study to chalk out other growth avenues except dairy and bakery products for the company. Their main aim is to be a complete foods company. However, although the firm is interested to diversify its line of products, the company will not be entering new segments in 2016-17. To increase capacity, Britannia has also earmarked Rs 300-450 crore for new plants. In the coming 2-3 years, the biscuit major will come up with a new plant in the export tax-free zone in Gujarat while another plant will come up in Andhra Pradesh and a third has been planned in the Northeast. The Indian Food and Beverage service Industry is one of the most vibrant industries that has seen unprecedented growth in the recent past and continues to expand rapidly. The F&B service market is worth INR 2, 04,438 crore and is expected to reach INR 3, 80,000 croreby 2017. The F&B sector has evolved over the past decade, giving rise to exciting new concepts in food and beverage offerings and new and innovative service elements.

he 110-year old unlisted herbal products company, which closed March 2016 with consumer products sales of Rs 620 crore, is revamping to keep up with intense competition in spaces it operates in. So the century old rosedrink RoohAfza is being given the much-needed contemporary makeover by its promoter Hamdard Laboratories. RoohAfza was formulated by Hakeem Hafiz Abdul Majeed in 1906 in Ghaziabad, British India and is manufactured by the companies founded by him and his sons, Hamdard (Waqf) Laboratories, Pakistan and Hamdard (Waqf) Laboratories, India. Since 1948, the company has been manufacturing the product in Pakistan, India, as well as in Bangladesh. Other companies formulate the same un-patented recipe in India, Pakistan and Bangladesh. Hamdard’s Chief Sales and Marketing Officer Mansoor Ali, who was roped in January 2015 from Olam International, shared the experiences of this makeover with Beverages & Food Processing Times. Mansoor Ali heads sales, marketing and the overseas business. With 20 years of experience in FMCG and consumer goods, he has worked in organisations like Gillette, Reckitt Benckiser, Sony and Olam International, handling various business leadership assignments. With an inherent ability to see patterns in complex situations Ali’s vision at Hamdard is to extend the brand and service offerings to a much wider and

newer set of consumers – by widening the product portfolio through innovations and new channels of business. In a telephonic interview Ali denied any change in the current format of brand RoohAfza claiming it the base or mother brand of Hamdard, the packaging might undergo little changes to contemporize. However he also added that the company is looking for some ready to drink format of RoohAfza which may come in Tetrapak or PET bottles targeting new consumers and youth. “Company is targeting youths and we need to become more progressive and relevant as we’re slowly losing relevance with the youth in a much cluttered beverage space. The brand is expected to increase its marketing spends by 15 per cent vis a vis last year in FY16-17”, Ali quoted. RoohAfza is perceived to be a rose-flavoured drink, however the brand doesn't position itself like that. The rose content in our syrup is a little low. Even in our communication, we never talk about it being a rose-flavoured drink. “We are trying to do is to reach out to the new consumers to tell people that RoohAfza is a multi-used product you can use it as a dessert topping, with milk (milk shake), or with lassi," he said. Ali said that the brand is sold commercially as syrup to flavour sherbets, cold milk drinks, ices and ice creams, such as the popular falooda. RoohAfza is typically and more popularly consumed by South Asian Muslims to end their fasts in the month of Ramadan but has now seen popularity among the non-Muslim populace it is tagged as seasonalise drink and losing its relevancy in youth. He further added that through this makeover we

India welcomes GST Bill 65% of the Indian households are below poverty line. We inherited

he Constitution (122nd Amendment) Bill for goods and services tax (GST), which Prime Minister Narendra Modi said will give "freedom from tax terrorism", crossed another milestone on 8th August with the Lok Sabha (LS) voting unanimously for it with 443 ayes and nil noes. The Rajya Sabha on 3rd August passed the single most significant economic reform since the liberalization by clearing the goods and services tax (GST) or the GST bill. It is believed that the GST bill bring transformational reform in India. It will not only aid the ease of doing business but also re-engineer business processes of companies. There will be a free movement of goods and services across the country. It would also have the effect of expanding the market as more actors are likely to enter the economic space. What is the Goods and Services tax or GST? The GST is a single indirect tax for the whole nation, which will make India one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. GST would most positively impact the organised manufacturing and the Make in India campaign for goods. It is likely to benefit organised manufacturing in the following ways: It is likely to bring down the present incidence of taxation on goods from 26.5 percent to 15-20 per cent. The removal of the inter-state barriers facilitating the free flow of goods and services is likely to reduce the logistics costs faced by the industry, bring them down to the world average of about 8 per cent.

Beverages & Food Processing Times

Negative protectionism faced by Indian industry will come down as the countervailing duty is likely to fully compensate the domestic duties faced by the Indian industry. The inventory costs of industry are likely to go down. As a destination-based tax, GST has an equity dimension. The developing states of India being consumption -oriented are likely to benefit from the introduction of the tax. This will aid in bringing greater investments in the social and economic sectors. GST will also have a political dimension: It will bring the Centre and states together in new arrangements of fiscal engagement. However, each state will need to create organisational structures in the form of a GST secretariat which will bring together senior officers of the Central Board of Excise and Customs and state tax officers. The secretariat should be registered under the Societies Act and must be provided with a dedicated administrative secretariat and funds. Many of the anticipated implementation issues could be sorted out once the state GST secretariats are in place. GST may also lead to a new thinking on the role of tax incentives in India. Numerous studies have proven that tax incentives are not the ideal way to encourage industry and attract investments. These incentives often do not meet the socio-economic objectives that they are designed to fulfill as they transfer resources from the poor to the not-so-poor. The industry is better supported through upfront budgetary allocations from the line ministries. History & GST There is a long list of those who made such reforms possible, starting from then finance minister Manmohan Singh. The initial reforms on direct taxes were carried out based on the prescription laid out by the late Raja Chelliah whose mantra was the evolution of a tax system focused on broadening the base and levying lower and less differentiated rates—based on a report written by M Govinda Rao, Chelliah recommended the introduction of

Vol. 9, Issue 03 - August - 2016

EXCLUSIVE STORY

will change the youth’s taste: Hamdard sales and marketing head: By are trying to deseasonalise RoohAfza and move beyond the 'summer, Ramzan' positioning, to be seen also as a non-alcoholic mocktail mixer or a dessert topping. The consumer is not moving around with the product. RoohAfza is a very inhome consumption product. We have the marker red identity which sits separately on the shelf but we can't sit on those laurels for too long. On changing market scenario Hamdard sales head said “The journey of achievement will be driven by modernisation of process and thought and by bridging the gap between the mature consumers and the younger ones through the right mix of positioning, communication, and product innovation strategy”. He said to connect with the aspiration and attitude of youth we are focusing on new age advertising apart from traditional one. In our campaign we are saying that greet s good but for if it is for good reason. “With a campaign of Greet Is Good Hamdard is going for the extension of brand RoohAfza which will be in different format”, added he. The new format of ready to drink product will be juice based containing actual juice in different citric flavours like lemon or orange, he mentioned. Ali said that consumers are now going for drinks natural ingredients and even wish to pay more for that. Even current Nielsen Data support Ali’s statement as functional beverages like Slice and Tropicana pushed fizzy drinks Coca-Cola and Pepsi out of the top five highest sold beverages across modern retail chains in the first half of 2016. He claimed that RoohAfza is unique and is perceived as herbal healthy refreshment as none

Ghufran Naqvi

of the other drinks are offering all the herbal ingredients. “The specific Unani recipe of RoohAfza combines several ingredients popularly believed to be cooling agents, such as rose, which is used as a remedy for loo, and the hot summer winds of Northern India and Pakistan and Bangladesh’’, he added. “RoohAfza is completely a health drink as the ingredients used by Hamdard laboratory are totally health benefited. Company use Herbs: purslane ("Khurfa seeds", Portulacaoleracea), Chicory, wine-grape raisins (Vitisvinifera), European white lily (Nymphaea alba), blue star water lily (Nymphaeanouchali), lotus (Nelumbo), Borage and Coriander Fruits: orange, citron, pineapple, apple, berries, strawberry, raspberry, loganberry, blackberry, cherry, concord grapes, blackcurrant and watermelon Vegetables: spinach, carrot, mint and mướphương (Luffaaegyptiaca) Flowers: rose, kewra (Pandanusfascicularis), lemon and orange Roots: vetiver (Chrysopogonzizanioides)”Ali told. He said that company is not planning to launch the sugar free format of this as sugar plays an important part in refreshing. He quoted that with the changing trend of E-commerce market in the country Hamdard has tied up with all the e-marketing platform like Grofers, Bigbasket RoohAfza is available on all these e-commerce sites as it is growing fast and most of the FMCG companies are tied up with the different websites. Sharing strategy on upcoming targets of Hamdard, company sales and marketing head said RoohAfza is in its second phase of expansion and plays in a sub-category of Beverages category, 'Concentrated

Mansoor Ali

drink and Powders'. Despite increasing competition from fruit-based or nimbu drinks etc, the company claims to enjoy around 45% market share. For the record, the category RoohAfza is operating in, is roughly around Rs 800 crore, while the overall Beverage category is estimated to be around Rs 5000 crore. “FMCG industry is lagging behind on growth, big FMCG measures are growing in a range four to six in a last two to three years but Hamdard even in last year has a growth of twenty percent and we intend to that focus”, Ali informed. He said that company will try to bust its revenue with its upcoming projects. Multinational beverages companies like Coca Cola and Pepsi are also entering in the fizzy drink segment with their low calorie drink as consumers opting for healthier drinks. Ali told that Hamdard is kicking off a retail venture under which it will set up 8-10 wellness centres over the next 12 months, starting with DELHI, Hyderabad, Patna and Kanpur. These wellness centres will sell all company products like RoohAfza, Safi blood purifier and Sualin cough drops, besides traditional medicines, and will have therapy rooms and doctors on board as with over 100 years of service to health and humanity, Hamdard has today become synonymous with ‘integrity’ and ‘high quality’ and stands as a mission committed to serve the benefit the society at large. Mansoor believes that GST would be a significant step in the reform of indirect taxation in India if implemented properly. Amalgamating several Central and State taxes into a single tax would

mitigate cascading or double taxation, facilitating a common national market. “The simplicity of the tax should lead to easier administration and enforcement. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25-30 percent”, he said. He further said that in a longer term it is good but the high rate of 18 per cent will eventually affect the supply chain of the market. “In other countries also where the GST has been implemented initially there is a phase of inflation seen same will be with India as people may see the high rates of commodities in next couple of years”, Ali added. GST in news now days as many private sectors and different states of the country are opposing it. Yet the bill is waiting to be in the parliament but voices against high rates of GST started rising. Government is saying that GST would be a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the Central and State governments. Meanwhile opposition urges that high tax rate of 18 per cent will effect as the inflation in the country will rise. Mansoor demanded exemptions on tax slab for the companies dealing in herbal ingredients and fruit juices. He said that the Prime Minister Narendra Modi also emphasised on adding healthy food categories on retail shelves.

with a few concerns from food industry the legacy of poverty, but we all desire to fight poverty. GST is a big platform to fight poverty– Narendra Modi, Prime Minister of India service taxation; replacing state sales taxes with VAT was also a Chelliah recommendation. Then finance minister Yashwant Sinha took the big steps in simplifying excise duty rates and coming to a moderate central rate. While it was P Chidambaram that first proposed the GST in 2006—it was to become operational on April 1, 2010—a large part of the credit to ensuring the states came on board, and their concerns addressed, has to belong to the heads of the empowered committee on state finance ministers like Asim Dasgupta, Sushil Modi and Amit Mitra. While the BJP played the spoiler at that time, BJP states like Gujarat almost scuttled it this time around as well—chief economic advisor Arvind Subramanian played a stellar intellectual role in highlighting how this would hurt Make-in-India and, to their credit, both prime minister Narendra Modi and finance minister Arun Jaitley went by his advice. Effect of GST Apart from the fact that GST makes a fundamental shift from an origin-based tax to a destinationbased one, its biggest contribution will lie in eliminating the border check-posts that dot all state boundaries—it is these check-posts that ensure India is not a single-market which, in turn, ensures that trucks line up at border posts for hours while their cargo and manifests are subject to laborious checks. Much of the increased GDP growth that economists estimate will accrue emanate from this reduction in transportation costs—to the extent that a GST means companies will no longer plan their warehouses based on tax rates in different states, logistics costs will also get rationalized. State governments, it is true, have yet to agree to eliminate the border posts, but once all information via invoices are uploaded to the GSTN and states find their tax collections are rising, chances are check-posts will get eliminated over a period of time — if they don’t, a big potential GST benefit will no longer accrue, making the exercise a less

useful one. As in any ambitious tax proposal, there are serious flaws that need fixing, and governments have several months to fix this. Asking firms to ensure that everyone before them in the value-chain has paid taxes before they get input tax credits is inexplicable and draconian, and the discretionary valuation of goods and services can cause serious problems—it is not clear why, as in the rest of the world, invoice-based valuation is not acceptable with well-defined ways to deal with discounts offered on final sales Valuing intra-firm supplies is another huge problem area and, here too, there are well-accepted global procedures. With a well-functioning GSTN, similarly, it is not clear why firms have to register with each state/UT and pay taxes at that level. Rules on e-commerce, similarly, are very complex. The biggest issue, of lower rates, remains unaddressed — this requires slashing exemptions — and that is critical if the benefits of lower taxation, including higher compliance, are to accrue to the economy. Till then, it’s too early to celebrate. How will GST be levied? The Central GST (CGST) and the State GST (SGST) would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike state value added tax, which is levied on the value of the goods inclusive of central excise. How will imports be taxed under GST? The Additional Duty of Excise and the Special Additional Duty presently being levied on imports will be subsumed under GST. Unlike in the present regime, the states where imported goods are consumed will now gain their share from this Integrated GST paid on imported goods. Here is what the Food Processing Industry in the

country thinks about the GST bill; As the Goods and Service Tax bill cleared its way with a majority in both houses of Parliament, the Indian Food Processing Industry has responded differently on the move. Nandakumar Shamanna, Regional Sales Manager DNV GL - Business Assurance believes that a uniform tax structure across the country, creating one market place should make a difference. If the noble intention of the GST, which is to bring down, taxes really works then this would be very attractive not only to the FDIs but also other investors. Shamanna hopes that all manufacturing sector will benefited from GST, improving efficiency, less administrative hassles, lower costs to the customers. “Food processing machinery sector & packaging sector stands to gain”, he added. Maniging Director, Kevin Process Technologies PVT. LTD. Ketan J Khambhatta welcomes the bill. “GST is going to benefit most industries & especially food industry will benefit from the fact that the warehouses can be located closer to delivery points, with logistics of perishable goods getting a good boost due to GST, it is going to provide immense benefits to the food processing sector, thereby attracting more FDI” he said. Khambhatta said that investment in to the cold chain will also improve with the unhindered movement of food

Beverages & Food Processing Times

products across the country. He urges that it is mainly going to simplify the tax structure in the country. The cost of machinery for food processing & packaging is dependent on various factors such as materials, labour & technologies utilized for manufacturing added he. However he believes that there will be definite impacts on the cost of certain materials that will help the manufacturers improve their costs. “More importantly, it will be easier to supply equipment without any lengthy paper work, forms etc, transactions will be much simpler which will be helpful when the food processing industry requires spare parts & services”,said Khambhatta. However, Manan Bajaj VP- Planning & Consulting Paradigm Services Pvt. Ltd. frightened that the application of GST will slightly increase the cost of machinery for food processing and packaging, as currently the excise duty applicable is relatively low."The biggest advantage of GST is that we will have a single tax without the cascading effect of multiple taxes, so only value addition is taxed at each point that is a healthy international practice”, he said. However he added that it is yet to be seen that how the food processing sector is treated under GST. Manan think that the processed food industry is facing problems due to the existing tax regime and hoped the implementation of the proposed goods and services tax (GST) would benefit the sector. Regarding FDI Manan said that Foreign direct investment (FDI) in multi-brand retail alone cannot bring down inflation or help to streamline the supply chain.

Vol. 9, Issue 03 - August - 2016

NEWS

Electronics Devices Worldwide Pvt. Ltd.

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

PACKAGING NEWS

Crown Announces 2020 Sustainability Goals

rown Holdings, Inc. (NYSE: CCK) (Crown) (www.crowncork.com), a leading supplier of metal packaging products worldwide, announced new environmental sustainability goals which it aims to achieve by the end of 2020.

sustainability performance to our stakeholders.” Crown’s 2020 sustainability goals: By the end of 2020, reduce energy consumption by 5% per billion standard units of production from 2015 levels.

The goals, focus on further reducing energy consumption and greenhouse gas emissions, complement the Company’s existing strategy to effectively manage and conserve resources and bring innovations to market that support the sustainability efforts of customers and consumers. The goals have been submitted to the Carbon Disclosure Project’s (CDP) climate change program, as Crown begins its participation this year. Public data will be published on CDP’s website this fall.

By the end of 2020, reduce Scope 1 and Scope 2 greenhouse gas emissions by 10% per billion standard units of production from 2015 levels.

Kliklok partnership with Vedic Pac Systems cements position in Indian market

liklok, a leading packaging machinery manufacturer and now part of the Bosch Group, has strengthened its position as the first choice packaging machinery manufacturer in India following a successful partnership with Vedic Pac Systems, a leading distributor of food and pharmaceutical solutions.

In addition to these reduction goals, Crown continues to drive environmental improvements by investing in a variety of energy efficiency projects each year. During 2015, Crown finalized 105 different emissions reduction initiatives that are anticipated to save over 10,000 metric tonnes of CO2 each year. Examples include: A multi-year effort to replace recuperative oxidizers with more energy efficient equipment in several plants, yielding estimated annual savings of over 2,600 metric tonnes of CO2. A phased lighting upgrade program involving the use of highly energy efficient lighting devices and replacement of LED lighting across multiple facilities.

“Crown has always lived by the principles of sustainability, placing a relentless focus on safety, innovation and efficiency,” said Timothy J. Donahue, President and Chief Executive Officer of Crown. “These goals support our continued commitment to reduce the environmental impact of our global operations and expand communication of our

“While ambitious, we are already well on our way toward achieving these goals, evidenced by the continued progress outlined in our biennial sustainability reports,” comments Donahue. “The state-of the-art beverage can plant that is currently being built in Nichols, New York, which is scheduled to be operational in the first quarter of 2017, will further support our progress. Its highly efficient equipment will make it one of the most energy efficient beverage can plants in the world.”

Huhtamaki buys 51% stake in Val Pack

“Many of our global and regional customers have plans to grow in India. With Val Pack, a wellestablished company with high manufacturing standards, we are able to serve them locally. We

also look forward to growing the business further by investing in additional capacity and introducing an extended offering of foodservice packaging to the Indian market,” said Eric Le Lay, executive vice president, Foodservice Europe-Asia-Oceania, Huhtamaki. Earlier in July 2014, it acquired Positive Packaging Industries, a privately owned flexible packaging company with nine manufacturing facilities in India and the UAE, for Euro 247 million (about Rs 2009 crore).

Govt. eyes on use of plastics for food packaging

overnment is conducting a study to ascertain whether the use of plastics for food packaging has any harmful impact on human health, Health Minister J P Nadda said. He, however, said there is no harm if plastics are used as per the standards laid down by the regulator Food Safety and Standards Authority (FSSAI). "There are various theories about it (plastics). We have not reached any conclusion. The study is still going on. If plastics are used within a level, then there is no danger," Nadda said during Question Hour in the Rajya Sabha. Normally, there are types of packaging -- paper, tin, plastics and glass. Globally, 42 per cent of packaging is done in plastics as they are temper-

Vedic Pac Systems, who has been operating in the processing and packaging industry in India for over 40 years, announced its decision to partner with Kliklok last year. In combination with the Bosch Packaging office in Goa, the partnership will see Vedic provide support to the Bristol based packaging equipment supplier in a host of areas including line installation, sales and marketing as well as local customer aftercare and line maintenance. Kliklok’s partnership with Vedic Pac Systems marks a significant 12 months and helps the company continue to explore the Indian and South East Asian markets even further. In the first year of its partnership, Vedic has supported Kliklok in the sale of two fully automatic endloadcartoning lines to “Everest Spice”, India's largest-selling spice brand. The installation will see the endloadcartoners pack for different size bags of aromatic spice mix at an impressive 330 cartons per minute. The new fully automatic integrated system has provided Everest with two highly efficient stateof-the-art packaging lines, supporting its ambitious growth plans at its factories in Pune, in the Indian state of Maharashtra and Mumbai, on India’s west coast.

On another query on banning use of plastics to serve hot tea, the Minister said "This comes under the Environment Ministry. They give specifications and each state have to notify accordingly.

Commenting on the partnership, NiravSampat, Managing Director at Vedic Pac Systems said: “In a country where the labour force is erratic and reliability of labour, or lack therefore, is a key issue effecting the processing and packaging industry, manufacturers are increasingly looking to machinery manufacturers for a solution. Today, there is a growing demand in not only the traditional sectors such as spices, rice and pulses, but also emerging markets such as bakery and confectionery. As a result, Indian businesses need reliable and high speed production and processing machinery. Kliklok machinery does just that and as many companies in India are looking to invest in automated production lines, we’re confident our partnership will flourish.” Speaking about Vedic Pac Systems, Simon Taylor, Commercial Director at Kliklok said: “The partnership with Vedic Pac Systems has been a great success so far and we’re delighted to be working with such a knowledgeable and wellrespected company. Having an additional partner company on the ground in India, enables us to more efficiently deliver our solutions to manufacturers in the region, ensuring local support is available during installation and for after sales care and support on the spot. The company’s experience in the Indian market is invaluable and we’ve learnt a lot from the team in the short time we’ve been working together. We look forward to expanding this relationship and helping food manufacturers across India.”

Greiner Packaging moves into India with JV

erman's Greiner Packaging is expanding in India with the formation of a joint venture, Greiner Packaging India Pvt. Ltd., with New Delhi-based Century Ultrapack.

role early on in the region. This expansion allows us to systematically pursue our globalization strategy and gives us even more opportunities to respond to the wishes of customers from abroad." Manfred Stanek, CEO of Greiner Packaging International, said: “This new partnership in India underlines the successful international path that we are currently moving along together with Greiner Packaging. Customers of both companies will profit in the region in the future, thanks to an efficient international site network, supply reliability, technology advancement, and the utmost strength in innovation.”

proof and there are less chances of adulteration, he said. FSSAI has laid down 10 standards for use of plastics in packaging of food products. If quality of plastics is as per the FSSAI standards, then there is no problem, Nadda said. To a suggestion on banning plastics for packaging medicines, the Minister said "there is no such plan." If the quality of plastics is below the stanards, then there is no problem, he said, adding that a committee has submitted a report on this issue. "We are considering it," he said.

The opportunity is expanding Kliklok’s access to the Indian market, by working with a market leader based exclusively in India, with offices in Mumbai, Pune, Ahmedabad, Bangalore and Chandigarh. In 2014, it established a state-of-the-art knowledge centre to encourage innovations while it’s team of 24 qualified professionals work locally to provide customers with comprehensive and extensive onsite installation services and after-sales support.

Greiner Packaging, which specializes in rigid products, has majority ownership of the joint venture. Axel Kühner, chairman of Greiner Group said: “We see a very high development and growth potential in India, where food packaging is concerned. It is important for us to take a leading

Beverages & Food Processing Times

Family-owned Century Ultrapack was established in 1980 and currently has a total of 135 employees, 62 of them temporary workers. Greiner Packaging currently has 4,000 employees at more than 30 locations in 19 countries worldwide. The company saw sales of 561 million euros ($629 million) in 2015.

Vol. 9, Issue 03 - August - 2016

Packaging Quality Standard-FSSC 22000, BRC/Packaging

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

POULTRY NEWS

U.S. threaten trade sanctions PFI feared possible free for India's Poultry Ban trade zone agreement among the BRIC nations

he United States of America is threatening trade sanctions against India over poultry import restrictions, after India lost the case at the World Trade Organisation (WTO). The U.S. will ask the World Trade Organization to sanction retaliatory trade measures on India for allegedly maintaining a ban on its poultry imports and will claim compensation at the next meeting of the WTO dispute settlement body, scheduled for July 19 in Geneva. India is failing to comply with a 2015 WTO ruling regarding the country's ban on U.S. imports of poultry meat, eggs and live pigs, the U.S. said. That bans on U.S. exports costs U.S. producers more than $300 million per year, according to industry estimates. On the sanctions Commerce and Industry Minister Nirmala Sitharaman said that we should put it in perspective. A certain notification was expected from the Animal Husbandry Department in India after the WTO case went against us. For whatever reason, the notification came a day after the U.S. thought we didn’t keep up the deadline. The

notification has come now, so I’m sure that the U.S. will take note of it, and there wouldn’t be a basis for any sanctions.

The WTO dispute settlement body previously determined that India's ban was not based on international scientific standards, was more trade restrictive than necessary and unfairly discriminated against U.S. imports. Following the decision, Indian trade officials pledged to comply with the WTO ruling but rather than ending its ban immediately, would instead enter negotiations with the U.S. to determine a sufficient time line for compliance (136 ITD, 7/16/15). The United States won the dispute in June last year, when the WTO’s Appellate Body ruled that India’s restrictions were discriminatory and based on unsubstantiated fears over bird flu. India had 12 months to comply with the ruling. At the time, US Secretary of Agriculture Tom Vilsack called it a “major win for US agriculture” and said it would help keep markets open based on international standards.

No subsidy for beef meat export: Minister development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.

nion Commerce and Industry Minister Nirmala Sitharaman in Rajya Sabha clarified that beef export is prohibited and no subsidy is provided by the government. Minister in a written reply said that no questions on subsidy should be made as per the existing foreign trade policy, export of beef (meat of cows, oxen and calf) is prohibited and not permitted to export. Replying to a question, Sitharaman said the government has so far recognised 180 applicants who had submitted required documents as per the definition of a start-up. A start-up is an entity, incorporated or registered in India not prior to five years, with annual turnover not exceeding Rs 25 crore in any preceding financial year, working towards innovation,

Minister informed the Upper House that 33 seafood consignments meant for export were rejected between January and June due to the presence of pathogenic bacteria (Salmonella) and banned veterinary drug residues (antibiotics) in aquacultured shrimps. Remedial measures taken by the Marine Products Export Development Authority to bring down the number of rejections include operating a nationwide network of sophisticated quality control labs, extension of services to all stakeholders in shrimp aquaculture and appropriate training in Hazard Analysis Critical Control Point System, among others, she added. Moreover, the Export Inspection Council (EIC), which has regulatory oversight over the marine exports, have signed confidentiality agreement with the USFDA (United States Food and Drug Administration) for sharing all related information that will help find the root cause of import rejection, Sitharaman said.

India Eases Poultry Import Norms after WTO Ruling

ndia has had to alter its poultry import norms after the U.S threatened to levy sanctions citing its protectionist regime was against World Trade Organization (WTO) rules. Previously, the import of poultry raised on genetically modified (GMO) grains was not permitted. The U.S. now has to decide if the relaxation sufficiently clears access for American exporters, otherwise it may take the case to the WTO’s compliance panel. Last year, the WTO ruled against India’s ban on poultry imports, stating that the government’s aim to protect the country from low pathogen avian influenza (bird flu) did not have scientific justification. India was given till mid-June this year to bring its import rules in line with international standards. As a result, India’s new notification clarifies that avian influenza and the areas affected

poultry industry, and players from Brazil and other emerging markets have started to internationalise and diversify the industry after saturation of markets in Europe and United States of America, he noted,.

by it will henceforth be defined on the basis of the definitions provided in the Terrestrial Animal Health Code of the World Organization for Animal Health (OIE).

nion minister for Agriculture Radha Mohan Singh dismissed the request for sops by domestic poultry industry in order to withstand competition from multinationals in search for newer markets. Key players of the industry expressed fear over the possible free trade zone agreement among the BRIC nations, which could lead to Brazilian poultry inundating Indian markets. However minister in his inaugural address at the annual general body meeting of the Poultry Federation of India (PFI) on Friday assured that a meeting will be organised with the poultry industry representatives, to discuss these issues, and take a decision “in the interest of the nation”. He said that in the changed competitive environment, for a sustainable growth, multidisciplinary in nature and across may specialised domains, an integrated approach is necessary to achieve global standards in poultry production. Growing demand in Asia and Africa is a key driver for the expected growth in the global

Mr. Singh listed various measures being taken by the Central Government for livestock farmers, and referred to the National Livestock Mission, and APMC Act. In annual general body meeting of PFI Ramesh Chander Khatri, and advisor Vijay Sardana, in their speeches, requested the minister for government’s support, as arrival of cheaper poultry from countries such as Brazil would wipe out the industry in India leading to large scale unemployment. Prices of feed such as maize and soy have been internationally on the downward curve, while in India, they are on the rise, he said, elaborating various reasons for the phenomenon. He exhorted the government to do away with the customs duty on the amino acids and enzymes required in poultry production, and classify the industry as agricultural activity. National Poultry Policy too was sought. Mr.Khatri pointed out that 60 per cent of the maize farmers and 80 per cent of the soya farmers are dependent on the poultry industry, and its collapse will adversely affect lakhs of people.

Indian Seafood industry eyes on global shortage

cuador earthquake and diseases in fisheries farm in South East Asian countries may be a boon for the Indian Seafood industry. Industry is expecting at least 15% growth this fiscal as it is poised to benefit from the shortage in the global marine products market.

Asian countries. In 2015-16, aquaculture production in the country dropped below 4 lakh tonnes as the prices fell. Scattered occurrence of diseases also hit the supply. This year, so far, the prospects have been good.

India suffered a setback in 2015-16 when the seafood exports fell 10-15% % due to a production dip and sluggish prices. But now prices have improved encouraging the producers to increase supply.

“This time, judging from the first harvest, aquaculture shrimp production should cross 4 lakh tonnes. Farms in some regions like Gujarat, West Bengal, Odisha and West Godavari are doing well,” said S Muthukaruppan, former president of Society of Aquaculture Professionals, adding that the farms have also been free from diseases.

“Till a few months back the industry was not bullish. But the present trend is encouraging for India with other seafood producing regions under stress. Even a major supplier like Ecuador, which was hit by an earthquake, may not achieve regular volume growth. The export may go up by 15% to 20% from a year ago,” said Rahul Kulkarni, director of WestCoast group, a major exporter. India is currently a major supplier of Vannamei shrimp to US and South East

The improvement in shrimp prices in world markets has encouraged farms, mostly concentrated in Andhra Pradesh, to increase harvest. “Farmers should get better prices unlike the case last year The prices of 30 count shrimp have touched Rs 500 a kg, up by over 60% from last year,” said Satyanarayana, export manager of Nekkanti Seafoods.

India’s Gadre Marine eyes to distend in Telangana

Foreign poultry poses a credible threat to domestic suppliers and farmers as it is significantly cheaper. The landed cost of imported chicken is estimated at US$ 1 (Rs 60-70/kg) while it is around US$2.5 (Rs 150-175/kg) in the domestic market.

rom Rs. 550 crore in the last fiscal India’s one of the largest producers and exporters of packaged seafood Gadre Marine is aiming to double its revenue this year..

The Indian poultry industry has asked for a concessional allowance of import of GM feed for local poultry farmers to lower their production costs and make them more competitive. Local producers worry they may lose market share by up to 15-20 percent to cheap American frozen exports.

The Maharashtra based company with more than 500 outlets across 20 cities entered India in 2008 and the market contributes around 7-8% of the total turnover at present expecting to double its sales by distending its product in Telangana and East India. Arjun Gadre CEO of Marine on Wednesday said

Beverages & Food Processing Times

that we are having a 50% yearly growth in Indian retail industry. We had sales of 250 metric tons last fiscal, and we are targeting sales of 500t this fiscal. We exported 34,000t of fish and produced about 14,000t of value-added products last year," he said. As per industry estimates, the retail market for frozen food has a potential to grow at a compounded annual growth rate (CAGR) of 20.5% over next five years from INR 3.65bn in 2012 to INR 9.30bn in 2017.

Vol. 9, Issue 03 - August - 2016

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

NEWS

Droughts to success story of Phaltan farmers-Govind Milk

ot many brands have a glorious back-story that eventually evolves into their business philosophy. This is the story of Govind Milk & Milk products – The Rajiv Mitra (MD Govind Milk) happy makers. Many years ago there was a drought-stricken village in Maharashtra called Phaltan. Consecutive droughts had left the farmlands arid and the farmers helpless. The farmers resorted to dairy farming to make ends meet. But the dairy market in Phaltan was dominated by middlemen which left the farmers with meagre earnings. The distraught farmers took their plea to Sanjeev Raje NaikNimbalkar – heir to the royal Naik-Nimbalkar family that once ruled Phaltan. He instantly took up their cause and asked the farmers to source their milk directly to him. And thus in 1995 began the happy journey of Govind Milk.

It’s known that happy cows yield happy milk. So it all started at the farms, when Govind taught the free grazing practice to its farmers. Soon the cows wandered freely in open fields, breathing clean air, eating fresh & healthy fodder. Govind’s team of veterinarians and agro-specialists researched

an ingenious fodder technique called ‘Hydroponic Farming’. This technique required minimum water and limited space for producing fodder and Sanjeev Nimbalkar involved very low Chairman Govind Milk setup cost too. This nutrient-rich hydroponic fodder increased the cows’ milk yield and kept them healthy. The farmers were happy because this technique freed the part of their farmland that they used to grow fodder for their cattle. A milk revolution had begun in and around Phaltan. Govind’s team of veterinary doctors and agriculturists visited nearby villages to educate farmers regarding the various cost-effective ways to breed their cattle. Govind’s symbiotic association with cattle farmers reciprocated in every upgrade of technology or process benefiting the community at large. More and more farmers recognised these benefits and joined Govind’s cause. What started as a movement with just a few hundred dairy farmers grew manifold into a revolution of nearly 40 thousand dairy farmers. Govind practices the best procurement and processing systems for milk processing and

production of milk products. They have developed a well-planned system that functions perfectly in tandem with cattle farmers for fresh milk procurement. Govind’s manufacturing facility sprawls across a massive 15 acres and is equipped with the latest dairy processing technology. The state of the art machinery requires minimum human intervention and helps process a variety of quality milk products like ghee, butter, shrikhand, amrakhand, lassi, skimmed milk powder, etc. Everyday nearly 5.5 lac litres of milked is sourced to this facility of which nearly 2.30 lac litres is sold in pouches while rest is used to make various milk products.

to be a revolution that changed the lives of farmers and the face of Phaltan. It’s the chain of happiness that began at the farms and continued to the customers. And that’s what has evolved to become their brand philosophy of ‘The Happy Makers’. When asked about this unique brand philosophy, Mr. Mitra, MD of Govind Milk & Milk Products said, “I believe that when you begin a good deed with all your honesty, it travels ahead with greater intensity. At Govind we have been witnessing the same for nearly 2 decades. Now it has become a way of life for us. We’re the happy makers. And the chain of happiness is getting bigger and stronger every day.”

In just 20 years Govind Milk & Milk Products has grown leaps and bounds. The sale of milk pouches started in the year 1999 with just 2000 litres of milk being sold per day. The same has risen to over xx lac litres per day by 2016. Govind began its sales operations in Maharashtra by steadily expanding its distribution channels across various regions. By September 2009, Govind milk & milk products were being sold in the state of Karnataka and by March 2010 in the state of Goa. The sales are rising steadily in these states across various product verticals.

With steadily rising sales and newer markets in prospect, the journey ahead for Govind is bound to be happier than ever.

What began as a simple act of kindness turned out

Britannia launches Cake Biscotti

ritannia Industries Limited has introduced into the market a one-of-its kind product, Britannia Cake Biscotti. This latest innovation is all set to excite consumers with a deliciously unexpected experience that combines the delightful aroma and taste of a cake and the ‘light soft crunchy bite’ of a cookie. It will be available in two delicious variants of Fruit n Nut and Choconut. Britannia is the only player in this sector to launch and distribute a packaged Cake Biscotti. The new and disruptive food innovation is in line with the Company’s assertive focus on bringing to India, the best of International food repertoire. At the same time, the Cake Biscotti also brings together an array of familiar sensorials, keeping in mind the taste preferences of the Indian consumer.

This makes the Britannia Cake Biscotti a classic ‘Bridge’ product i.e. it combines the best of the world of a cake and that of a cookie. The unique process of creating a Cake Biscotti gives a feeling that it is hand crafted and the process of double baking ensures that the product has a crunchy bite and mellow flavour experience. It is this melange of the unique process & special recipe which will keep the consumers guessing – Is it a cake? Or is this a Cookie? The aroma and flavour will make them think it’s a cake, but the crunchy bite will make them believe it’s a cookie. Every mouthful is a blend of crunchy nuts and juicy fruits and yet the overall experience is subtle and so unexpected. On the launch, Manjunath Desai, Vice President of

Strategy and Business Development at Britannia Industries Limited said, “Britannia is always looking to capitalize on its expertise in the Baking Business and its understanding of the taste and preferences of the Indian consumer to offer them truly new and exciting food experiences. Cake Biscotti aims to popularize an interesting bridge format by combining the delight of a cake with the crunch of a cookie. It sets the launch of a new category and will be backed by aggressive consumer sampling, digital marketing and in store promotions and visibility.” The Britannia Cake Biscotti is priced at Rs.25/- for 70g and Rs.28/- for 70g for the two variants Fruit n Nut and Choconut respectively. It has begun to hit retail shelves in July. The product will be available in all general retail stores, modern trade stores

(super markets) across key urban markets in India and online through e-commerce sites. Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual revenues in excess of Rs. 8500 Cr. Britannia is among the most trusted food brands, and manufactures India’s favorite food brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in India. Britannia is a brand which many generations of Indians have grown up with. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt. Britannia products are available across the country in over 4 million retail outlets and reach over 50% of Indian homes. The company’s Dairy business contributes close to 10 per cent of revenue and Britannia dairy products directly reach close to 700, 000 outlets and over 3 million outlets through indirect distribution.

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121, 1st Floor, Rasaz, Multiplex, Mira Road (E), Thane - 401107, Maharashtra. Tel: +91-22-28115068 / 28555069, +91-8689979988 Email: info@agronfoodprocessing.com, Website: www.agronfoodprocessing.com

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Britannia Bread is the largest brand in the organized bread market with an annual turnover of 1.1 lac tonnes in volume and Rs.385 crores in value. The business operates with 13 factories and 5 franchisees selling close to 1 mn loaves daily across more than 73 cities and towns of India. Britannia takes pride in having stayed true to its credo, ‘Eat Healthy, Think Better’. Having removed over 8500 tonnes of Trans Fats from products, Britannia became India’s first Zero Trans Fat Company. Over 50% of the Company’s portfolio is enriched with essential micro- nutrients which nourish the body. The company set up the Britannia Nutrition Foundation in 2009, and began working with under-privileged, under-nourished children by supplementing their daily meals with an Iron and multiple micro- nutrient fortified product. Brand Britannia is listed amongst the most trusted, valuable and popular brands in various surveys conducted by prestigious organizations like Millward Brown, IMRB, WPP Group and Havas Media Group to name a few.

Vol. 9, Issue 03 - August - 2016

BISCUITS NEWS

DKSH gives a flavor of innovation at Food Ingredients India

KSH, the leading Market Expansion Services provider with a focus on Asia, showcases its food and beverage industry portfolio, innovations, solutions and concepts together with renowned key clients at the Food Ingredients India 2016 trade show in New Delhi, India. Mumbai, India, August 10, 2016 – DKSH’s Business Unit Performance Materials, a leading Market Expansion Services provider and distributor of food and beverage ingredients, will exhibit at the FI India 2016 trade show in New Delhi, to promote its key clients’ products and innovations. DKSH will exhibit at stand A55 in hall 12A from August 22 – 24, where senior executives from DKSH and key clients will be present throughout the show to promote their products and innovations from their extensive food and beverage industry portfolio. DKSH provides concepts, formulations and ingredients to the food and beverage industry, including functional ingredients and institutional products. The event, which saw over 6,000 visitors attend in 2015, will showcase leading companies in the beverage and dairy, confectionery and bakery, processed food, food supplements and food nutrition sectors. DKSH provides Market Expansion Services to many clients whose products will be promoted at the show, including Arla, Sensus, Wacker, Lactosan, DSM, Tate & Lyle and Kimica. “We are excited to exhibit at FI India 2016. This is a great platform for DKSH to showcase its extensive product and innovation portfolio for the food and

beverage industry. We look forward to another successful show and hope you will join us in New Delhi,” commented Atul Nagarkar, Managing Director, DKSH India. DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets. Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich.

Parle down its shutter at Ville Parle

ou must be missing the whiff of baked biscuits that used to waft through the air as your train crossed Vile Parle station.

Parle G, the brand which can be associated with every Indian, regardless of their financial background has decided to close its 90 years old unit at Vile Parle in Mumbai.

With 770 business locations in 36 countries – 740 of them in Asia – and 28,300 specialized staff, DKSH generated net sales of CHF 10.1 billion in 2015. Founded in 1865 and with strong Swiss heritage, the company has a long tradition of doing business in and with Asia and is deeply rooted in communities and businesses across Asia Pacific. DKSH Business Unit Performance Materials is a leading specialty chemicals distributor and provider of Market Expansion Services for performance materials, covering Europe, North America and the whole of Asia. The Business Unit sources, develops, markets and distributes a wide range of specialty chemicals and ingredients for pharmaceutical, personal care, food & beverage as well as various industrial applications. In addition, it creates innovative and cutting-edge concepts and applications in 26 innovation centers located worldwide. With 100 business locations in 30 countries and around 970 specialized staff, Business Unit Performance Materials generated net sales of CHF 782.5 million in 2015.

The owners of the company decided to stop the operations of the unit and finally put its shutters down after its production figures crumbled immensely and affected the business of the firm. Commenting on the move, Arup Chauhan, Products Executive Director, Parle said that the production at the time of closure was negligible. It didn't make commercial sense to keep it running. The Rs 10,000-crore Parle Products, which has manufacturing units across India that make Parle-G and other biscuit and candy brands, halted production at the local factory two months ago following a reduction in production capacity over the last few years. At the time of the shutdown

of the Parle plant, which at its peak produced the largest volume of biscuits, there were around 300 workers, who have all taken VRS. Chauhan described the VRS process as "smooth". Spread across about 10 acres, the factory houses Parle Products' HQ. Although Chauhan did not divulge details, the closely held Parle Products, named after the western suburb, is likely to retain the land, which sits on a prime location amid a host of residential complexes, for development. According to realty experts, the going rate for residences in Vile Parle is between Rs 25,000 and Rs 28,000 a square foot. Set up in 1929, the Vile Parle factory used to first manufacture just candies. Sugarboiled candies initially came in glass jars and later wrapped in translucent plastic wrappers and were sold across `kirana' stores under the Parle brand. The factory began biscuit production in 1939. Parle Products is the lar gest biscuit maker and among the leading food players in the country. It competes with rivals like Britannia Industries and ITC. According to the company's website, Parle Products has a 40% share of the total biscuit market and a 15% share of the total confectionary market in India. The Vile Parle unit has often thrown open its doors to neighbouring schoolchildren to help them learn about biscuit and candy-making processes. This was long before KidZania, an edutainment theme park for children, came calling in Ghatkopar.

Event Calendar-2016

September 2016

1st-2nd September VitaFoods Asia, Hong Kong 7th-9th FoodPro,

22nd-25th Sudback Germany 22nd–24th Dairy Feast, Lucknow 25th-28th Cibus Tec Italy

Chennai

November 2016

22nd–24th International

1st-3rd Foodtech Denmark

Foodtech,

2nd-4th Worldfood Kazakastan

Mumbai

2nd-6th Indagra Food

22nd-24th Annapoorna,

Romania

Mumbai

2nd-5th Eurasia Packaging

28th- 29th Indian Icecream

Turkey

Congress & Expo Noida (Delhi

9th-12th Interfood & Drink

NCR)

Bulgaria

29th-1st Food Hospitality

14th-17th Emballage France

World,Goa

19th–22nd Agro

October 2016

Tech,chandigarh

4th-7th Tokyo Pack Japan

4th-6th Innopak Spain 5th-6th Easyfairs Sweden 10th-14th Agroprodmash

23rd-24th Packaging Innovations Netherlands 25th-26th Empack Belgium 27th-30th Intervitis Germany

Moscow Russia

Decemer 2016

11th-14th China Brew &

15th-17th Drink Technology,

Beverage Sanghai

Mumbai

15th-16th Evenord Germany

30th-1st palmex Latin America

21st-23rd Cake Fest Poland

Columbia

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

FOOD SAFETY NEWS

Potential and Budding entrepreneurs work hard to expand food processing sector

anipur is a state blessed with favorable agro-climatic conditions that boost the production of a variety of fruit and vegetables. Looking into this the state state's

Department of Commerce and Industries is offering youths a number of schemes designed to channelize their entrepreneurship spirit and help them set up their ventures in the food processing

industry. Step is taken to give a push to the expanding food processing sectors in Manipur. The current government has been promoting

Beverages & Food Processing Times

entrepreneurship under its Skill India and Startup India programmes. Such ventures help unemployed youths make their own living as well as contribute to the economy.

Vol. 9, Issue 03 - August - 2016

NEWS

OLIVE launches his third year promotional campaign in India with Rafa Nadal

and the importance of olives in the Mediterranean diet, which is listed as an Intangible World Heritage by UNESCO. An Instagram account featuring recipes which include Spanish olives developed by Chef Sabyasachi Gorai or other renowned Chefs is the newest addition to the online social media campaign.

or a third year in a row, Olives from Spain targets India as a key market for international promotion campaigns.

In addition to Facebook, Olives from Spain will count on an Instagram account that will be used to provide updates, recipes photographs and especially newly created short video srecipes showing imaginative recipes of Indian cuisine and Spanish cuisine using olives as a key ingredient. (Date) Olives from Spain is launching the third annual campaign in India to promotion olives consumption, raise awareness about the product and its versatility and encourage consumption of this key Mediterranean ingredient. Advertising, an online campaign using Facebook and Instagram, and participation at the Palate Festival in New Delhi are the main pillars of part of this promotional season. Major events will take place during the second half of the year. Spain is the world leader in table olive production. It exports olives to more than 120 countries,

representing 40% of the global market. The main markets for Spanish olives are the USA, Italy, Germany and France. Since 2007, Olives from Spain has targeted other potential markets. India has been identified as a country where consumption is steadily increasing. To continue with this positive trend, this campaign is focused on presenting ideas for integrating olives into the Indian diet.

Thanks to the collaboration agreement signed between the athlete and the Spanish Ministry of Agriculture, Food and Environment, Rafa Nadal is the Embassador of the famous Mediterranean diet. Born in Spain, the biggest producing country of olives in the world, the tennis player represents the values of this healthy product! He said: "As a sportsman I travel a lot. I feel extremely happy when I find products from my country when I am abroad. Contributing to their promotion makes me feel proud.”

It also focuses on sharing the nutritional benefits

Layer your celebrations with Super Veg Vanilla Cake Mixes from ‘Pristine’ The Super Veg Vanilla cake mix is everything you’ve ever wanted in a cake mix and more! This 100% vegetarian vanilla premix has the perfect amount of imported soft wheat flour combined with premium ingredients to give you a lustrous and shiny batter. This results in a sponge which is fluffy, cottony texture, super white colour and with a delicious milky vanilla taste. It has excellent short-bite with a good mouth feel. With the Super Veg Vanilla Mix, there’s no stopping you from creating the most delectable cakes for every occasion. Introduced for the first-time in India, the Super Veg Vanilla Cake Mix by Pristine will take artisanal baking to the next level. It will prove to be a first choice for bakers and bakery specialists. It is already to use cake mix for premium quality sponge. It is convenient for bakers to work on & create infinite masterpieces. It is at the heart of many patisserie applications like traditional cakes, wedding cakes or birthday cakes. It is also used in trendy layer cakes, Swiss rolls, snack cakes and many others. With so many uses the bakers will be left asking for more. “We formulate & customize products to suit specific applications and which delight the Indian taste buds”says Maloy Chakravorthy, GM Sales & Marketing. ‘Pristine’, the Bakery Specialist, strives to create niche and premium products for Bakery customers at its latest R&D and Manufacturing unit at IFPL (Indagro Foods Pvt Ltd), Kalwa Factory, near Thane. The brand has introduced Super Veg Vanilla Cake Mix, one of its most premium vegetarian sponge cake mixes for the Indian market. Indagro Foods Pvt Ltd is a part of the Allana group of companies. The Group has over 30 years of international experience in the bakery industry with presence in more than 60 countries. Maloy Chakravorthy, GM Sales & Marketing further adds, “We used to import this product until now, but with the same technology and the same high quality ingredients, we have started manufacturing in India for the domestic market”. The Allana group through FAPL (Frigorifico Allana Pvt Ltd.) and Indagro Foods Pvt Ltd.is one of the fastest growing food conglomerates in India. At present, FAPL and IFPL cater to the needs of end consumers and industries through strong presence across food categories like Edible oils& fats, Premium ice creams & Bakery ingredients. FAPL‘s strong R&D foundation and experience over three decades in the Oils & Fats business across the world helps it to deliver world class products that offer significant value to both consumers and Industrial customers. These products are manufactured out of its State of the art facility set up at Khopoli in 2013 In 2012, IFPL put up a world class bakery ingredient plant near Thane to manufacture Pristine, an International range of superior quality bakery premixes. The aim of Pristine is to help artisanal and Industrial bakeries to bake better. Pristine has a wide range of world class products across both Bakery Mixes and Bakery Fats.

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Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

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KOSHER & HALAL CERTIFIED M.B. suGArs & phArMACEutICALs LtD. Lodha Bhuvan, Post box No. 31, Malegaon, Dist. Nashik, Maharashtra- 423203. Tel: +91-2554-251883, 251885, 251893, 251894 Fax: +91-2554-251886 Email: mbho@mbsugars.com, mbsugar_nsk@sancharnet.in

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

OIL & FATSNEWS

Emami Agrotech to expand its edible oil manufacturing capacity

mamiAgroTech, a part of the Emami group, will expand its edible oil manufacturing capacity to become the number two player in terms of production capacity in the country by 2018. Emami group director AdityaAggarwal stated that their present manufacturing capacity in edible oils is 4,000 tonnes per day (tpd) between Haldia and Andhra Pradesh plants. Post expansion, the capacity will rise to 8,000 tpd within 2018. Agrawal also added that the capacity at Haldia plant would increase from 3,000 tpd to 4,000 tpd, adding the company was in the process of setting up a new plant near Kandla port in Gujarat and the plant would have an initial capacity of 2,000 tpd, which would later be increased, he said. "After all the expansion, Emami would be the second largest player in terms of capacity after Adani within 18 months", Aggarwal said. The company is also setting up another plant in Rajasthan to produce mustard oil. With the present revenue of Rs 5,000 crore, post expansion this would rise to Rs 10,000 crore and total investment which would go in was roughly 600 crore, he said. The company manufactures a wide range of edible oils like mustard, sunflower, soyabean, and palmolein and rice bran under Best Choice and Healthy & Tasty brands.

India to make itself self-reliant in edible oil

he government of Rajasthan has imported 100,000 saplings of olive plants from Italy, Spain, and Israel etc. for replanting in the state-owned field on experiment basis. This is an attempt to make India self-reliant in edible olive oil. The agro climatic condition of Rajasthan suits plantation of olive plants which the government wants to exploit for long term sustainable basis and thus have imported 100,000 samplings of olive plants and re-planted around half of that in 5,000 hectares of land. Olive oil is the highest priced edible oil in India ranging between Rs 850–1200 a kg and imported primarily from Italy, Spain and Israel. In summer, the olive plant requires 47 degrees Celsius of heat while in winter minus 6-7 degrees Celsius of cold climate is needed. Rajasthan enjoys this type of temperature diversity. Hence, olive plants can comfortably be growth in the state. However, the minister urged governments in the neighboring states to join hands to grow olive plant in India to increase its availability, which will automatically help reduce prices. Data compiled by the Olive Oil Association (OIA) showed India’s imported olive oil at 11,254 tonnes for the FY16 as against 12,621 tonnes in FY15. According to the V N Dalmia, Founder President of OIA, the government of Rajasthan lacks technology for converting olive fruits into oil. The government plans to sell crude olive oil which requires refining to make it edible. The olive plants which start yielding fruits in three years require a modern refinery with advanced technology adoption from countries like Israel, Italy and Spain, Dalmia added. Rajasthan, with 25.5 million ha (14% of India’s total) cultivable land, is the leading producer of pulses, edible oilseeds, cereals like bajra and maize. Apart from that the state produces a large quantity of fruits for processing. The growth of olive plant in Rajasthan assumes significance in the wake of India’s over 60% of edible oil demand (~23.5 million tonnes) is met through import.

Vol. 9, Issue 03 - August - 2016

MB to introduce Roll n Mould Sugar Paste

B has world class expertise in manufacturing Sucrose, an incipient to pharmaceutical companies. Registered under Drug License, MB is the only company in the world which is also registered under USDMF. MB holds KOSHER and HALAL certifications as well. MB offers the largest range of Specialty Sugar like Breakfast Sugar, Sugar Cube, and Light Brown Sugar, Demerara Sugar, Castor Sugar, Icing Sugar, Candy Sugar, Calcon Sugar Free, Fondant Icing Sugar and many more. Now MB is ready to add yet another feather to its cap. MB takes pride to introduce Roll n Mould Sugar Paste, an edible Icing used to decorate or sculpt cakes and pastries. This Sugar paste is also known as rolled fondant or ready to roll icing. MB Roll n Mould tastes great and works like a dream .It is firm and elastic, and makes rolling it out for covering your cake effortless. Furthermore, it can be made in any imaginable shape or form to be used as decorations such as flowers, bows or action figures. Roll n Mould is ideal for cake decorating professionals as well as home bakers. It can be used to cover cakes, to mold features, and create decorations for cakes. Itâ&#x20AC;&#x2122;s ideal for wedding cakes, theme cakes and party cakes. It is also useful to decorate a myriad of desserts including butter cookies or biscuits.

Marine Hydrocolloids introduces WONDER GelModified Agar

arine Hydrocolloids ( formerly known as Marine Chemicals) the largest manufacturer & exporter and market leader of quality Agar in India is introducing WONDER GelModified Agar, ( Spreadable Agar) first time in India What is WONDER GEL? It is an excellent vegetarian alternative for partial or total replacement of traditional animal based Gelling agents or expensive hydrocolloids with smooth spreadability and creaminess. It is obtained by transforming the rigid structure of native Agar yithout any chemical treatment to give a softer and creamy texture*vhite still maintaining the natural benefits of seaweed fiber. The main advantages are high water binding capacity, low gelling & dissolution temperature, high synergy with other hydrocolloids, no need of gelling aids, high natural dietary fiber content etc. Wonder gel is available with different gel characteristics according to applications. Applications Wondergel is well suited for preparing Yoghurt, condensed milk" cream filing custards, soft creamy Instant puddings, marshmellow, spreadable cheese, piping gel, thermo reversible cake glaze, condensed milk, sauces, candies, marmalades, jam, ketchup etc.

NEWS

Vol. 9, Issue 03 - August - 2016

PRE SHOW REPORT

One & Only Show For

Indian Ice Cream Industry-IICE 2016 Indian Ice Cream Congress 2016, 28-29Sep 2016 Noida

ndian Ice-cream Congress (IICE) is one of the most significant events in the global icecream industry, only one of the three of its kind in the world and South-Asia’s only gathering of ice-cream manufacturers. Hundreds of ice cream manufacturers from different parts of the country and world exchange their views on this platform. This is the 6th edition of IICE and it is growing with 100% rate of growth year on year. This is not because we have done something very different but we have actually filled the vacuum in this segment by organizing an event for ice cream industry. Last year in Bangalore IICE 2015 received 2123 visitors, 106 exhibitors and over 618 ice cream companies. IICE 2016 is expected to be bigger in size than all previous shows. Indian Ice Cream sector has become one of the faster growing sectors in Indian food processing industry. Investment in technologies and new trends has broken all previous records in the last 3-4 years.

Companies providing freezing and handling machines, packaging machines and materials, equipment and component suppliers, cone manufacturers, food ingredients companies, cold chain companies especially cold rooms and deep freezers, consultancy services, traders and stockists, raw material suppliers, milk powder and chocolate suppliers, ice cream bands looking for expansions will participate as exhibitors in the show. We are expecting around 200 exhibitors and 3000+ visitors in 2016 at Noida, Delhi-NCR show.

About Indian Ice Cream Industry: Indian ice cream industry is one of the fastest growing segments of the dairy or food processing industry in India at the moment. Broadly we can see this at two levels one is organised which is about Rs 10,000 cr and two is unroganised which is unaccounted and experts say that it is as big as organised sector.

All the major ice cream companies came together and established ‘Indian Ice-Cream Manufacturers Association’-IICMA in 2011 as the National Association of Ice Cream Manufacturers. Ever since, IICMA has been leading on all fronts by organising seminars, exhibitions, workshops, meeting with government departments, etc.

needs huge amount of cold chain machinery, transportation and display machinery. Right from the point of processing till the cup or cone ice cream needs continuous cold chain facility. This industry is short of cold chain by about 50%. So this is a green spot for all those who are providing cold chain solutions.

Our consumption is way too low when we compare it with the USA or Australia. It is even lesser than China or Pakistan as well but we have seen in the past 3-4 years it has doubled from 200ML to 400ML which is a significant development. If we carry on with the same rate of growth will soon we can touch the level of China’s per capita consumption which is around a litter. In India ice cream is considered as a seasonal food product and due to various midwife myths people intend to consume it during in summers only. Where in other countries ice cream is considered as a daily dessert or outing food. If we are able to break these myths our consumption will automatically increase.

Food safety also has been on top of the agendas of the ice cream processing companies and companies have improved significantly processing quality and standards of their products in past few years. Still we need to be vigilant to keep a check on each and every entry and exit of the ice cream processing unites.

This growth of 400ML to 1000ML will provide enormous opportunities to the allied segments to grow with the industry. Consumption of chocolate, SMP, additives and machinery is already growing in leaps and bounces but future is even brighter. Allied segment has a challenge in front of them how they cater this fast growing industry. They also have a challenge to provide good quality machinery in huge numbers along with tons of raw materials to make the ice creams, to provide them good color, flavour and texture also to provide huge amount of primary and secondary packaging to the said industries. There is another area of growth for the allied industry, the cold chain. This is one of the most important aspects of this trade. Without cold chain nothing can be done or planned. Ice cream industry

Contact For Bookings

In India ice cream industry is mostly regional there are hundreds of brands focussing only one or two districts or in some case only upto state level. There are very few national brands that are doing business nationally and the major reason behind slow growth is high perishability of ice cream products. In recent times we have seen many companies have improved their supply chain and going beyond the boundaries. Ice cream industry is the biggest victim of bad infrastructure of road and power supply. Due to this, rural India where power comes just for few hours in a day which is not less than 50% of the country’s population is not able to store ice cream for sale on nook and corners of the inhibited areas. Continuous power supply in these regions will open huge opportunities for ice cream industry to cater all together a new territory for their products. Many international players have also launched their brands nationally with huge investments and tie-ups. This is a very positive trend for the Indian ice cream industry and we see a great future ahead. If the ice cream industry grows consumption of milk and milk products which directly relates with farmers will increase.

Firoz H Naqvi : +91 9867992299 Sameer K: +91 9833325839 Seema Shaikh : +91 8689979988

Beverages & Food Processing Times

Vol. 9, Issue 03 - August - 2016

Wanted Super Stockists/ Disttributors across the nation Milk Choco slab, Dark Brown Choco Slab, Milk Choco Paste, Dark Brown Choco Paste, Enrobing Chocolate, Compound Chocolate, Moulding Chocolate, White Coating Chocolate, Choki Chocolate, Ice Cream Coverning, White Choco Slab & Choco Chips.

TYTAN FOODS 203/6, Pahse-II, Sector-3, Lane 2, I.D.A, Cherapalli, Hyderabad-51, Phone: +91-40-27260725, 65459664, Fax: +91-40-27136726, Mobile: +91-9848764869, 9848049723, 8885088814 Email: sales@tytanchocolates.com, tytanfoods@yahoo.com Website: www. tytanchocolates.com

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