Beverage & Food Processing Times December 2016 by Advance Info Media & Events

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Vol. 9, Issue 07 - December - 2016

FOOD PROCESSING NEWS

IBA disappointed at Sin Tax on aerated drinks

he Indian Beverage Association (IBA) is disappointed over keeping the sector in demerit/luxury category and fixing sin tax on it. The GST council recently re-categorized aerated drinks under the demerit/luxury category under the GST rate slabs. At Rs. 10/- for 200 ml, aerated drinks are neither luxury goods nor do they carry the kind of health hazards attributed to them. The issue of negative externalities around aerated drinks has already been laid to rest and IBA reiterates that: Aerated Drinks are not ‘sin’ goods as the Union Government itself had accepted the position by removing such goods from Schedule VII of the Finance Act, 2005 in the 2015-16 Budget. There are observations by the court based on the report of an expert panel that the ingredients present in aerated drinks do not pose any health hazard. Aerated Drinks are not ‘luxury’ goods. Aerated Drinks cater to the average hydration needs of Indians in the form of immediately-available hygienic and safe drink source. The consumer base of aerated drinks ranges from the low-income group to the high income group. Aerated Drinks are supplied even to rural villages and semi-urban cities. The Indian Beverage Association wishes to also clarify that currently the incidence of tax on aerated drinks is not 40% as conjectured by some. The States of Maharashtra, Madhya Pradesh and Rajasthan had raised VAT as late as in the second half of 2015. It is, thus, evident that over 80% of the States are taxing this category at less than 28% (the highest slab for GST rate). In the circumstances, when the applicable tax rates on aerated drinks with abatement already stands at an effective 30-31%, the Indian Beverage Association does not subscribe to the recommendation of an additional cess on aerated drinks over and above the 28% GST rate. This industry is confident that the government will take note of its commitment to the “Make in India” programme launched by the Hon’ble Prime Minister of India. Food Processing and Aerated Beverages have been one of the largest contributors to the FDI in the country and that we will not be discriminated against in GST. Needless to mention, this increase in taxes will lead to an increase in the price of the soft drinks, restricting the purchase of soft drinks by the general mass, besides providing encouragement to spurious manufacturers to sell their products on the basis of the cost arbitrage. In these highly difficult circumstances, the Association strongly urges the GST Council to not impose any additional tax burden by way of cess on aerated drinks, which could well amount to being the last straw on the camel’s back. The viability of the industry could be in grave danger because of such a consistent adversarial tax approach.

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Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

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

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Vol. 9, Issue 07, December 2016,

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Govt. shall promote new Food processing ministry technologies to decrease has sought an extra fund of about Rs 350 crore

food wastage

he government in order to reduce postharvest food loss that’s estimated at Rs 1,00,000 crore, will promote new technologies which will help increase the shelf life of pulses and other grains. Efforts are being made to strengthen storage infrastructure with modern silos by giving subsidies under various government schemes. Food Processing Secretary, Avinash K Srivastava also pitched for use of science and technology to address the problem of food wastage in the country recently at a global conference on controlled atmosphere and fumigation in stored products. “Apart from increasing production, we should take steps to control and reduce post harvesting losses. Unparallel role of technology is now being hailed. The advantage of technology is great in so far as conserving and improving our production and by-products," he said. Srivastava also added, at present, post-harvest food losses are assessed at Rs 1,00,000 crore, which is 1 per cent of the

country's GDP. "If we reduce the losses, that much increase in GDP would be seen.” Emphasising on the need to use new technologies, Srivastava mentioned about the advantage of 'Buhler grain technology' for pulses and JVM technology for citrus fruits used to increase the shelf life of the products. Since the country faces shortage of pulses, this technology is most suitable for India. Some private players in Maharashtra and Gujarat are already using it on a small scale. "We are there to push such new technologies that will help reduce wastage," he said. The secretary said that private players are being roped in this area and modern silos are coming up gradually. Srivastava also stated that very soon the government will conduct a fresh study to ascertain the extent of post-harvest food losses in the country. Current post harvest food loss of Rs 1,00,000 crore was estimated in 2014 and it needs to be updated, he added.

or the current fiscal to implement the existing programmes, including Mega Food Park, the food processing ministry has sought an extra fund of about Rs 350 crore and is readying new schemes for it. Food Processing Minister, Harsimrat Kaur Badal said the government will soon come up with two new schemes for setting up of agroprocessing clusters and creation of backwardforward linkages as part of its objective to double processing level from the current 10 per cent.

A new scheme will be formulated for incentivizing the creation of FPOs (Farmer Producer Organisations) in food processing area and the minister has released a web-based system to submit documents for release of grant-in-aid under scheme for Integrated Cold Chain and said the move will contribute to the cleanliness drive by reducing paperwork, besides ensuring transparency. Badal said the web-based system is already in place for the Mega Food Park Scheme since June and about Rs 160 crore has been disbursed electronically. Food Processing Secretary Avinash Srivastava said the ministry will soon approach the Cabinet for approval of Scheme for Creation of Infrastructure for Agro-Processing Clusters and another 'Scheme for Creation of Backward-Forward Linkages'. And the ministry has sought Rs 1,000 crore for this fiscal to implement the existing and new schemes as against Rs 636 crore allocated in the budget, he added.

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FOOD PROCESSING NEWS

Avocado, kale and turmeric: The top searched-for superfoods

ich in vitamins and minerals, Superfood have become popular in areas that have strong lifestyle appeal or incomeadvancing potential for young adults. Most of the top ten superfoods, according to Google trend reports, are more likely to be found in homes rather than restaurants. This is partly because young adults, who are more adventurous eaters than their elders, are abandoning restaurants in droves – eating in has become cheaper with falling food prices The Superfood trend is growing, and Search Laboratory has identified the most popular ones in the U.S. by online search volume. The foods, including avocados, kale and tumeric, were searched nearly 250,000 times per month on average. The majority of the searches were clustered along the west coast and the northeast, in sync with population trends for singles and younger adults. Portland was the top U.S. Superfood search

capital, with Seattle, San Diego and San Francisco close behind. As avocado, kale and turmeric — the top three (in order) among the top ten searched-for superfoods — have become more popular, more manufacturers and restaurants have incorporated them in their formulas. The popularity of Indian and Asian dishes have helped tumeric's rise, just as interest in Middle Eastern and Mediterranean meals have for bulgur, a form of cracked wheat, and kefir, a fermented milk drink. Increasing numbers of vegetarians and vegans choose almond and coconut milk as well as flax – a common substitute for egg – as dairy alternatives, giving those three superfoods search count boosts. Blueberries and cauliflower, the remaining two of the top ten, are also perennial favorites because of their nutritional value, availability and versatility.

Harsimrat Kaur may visit Japan to woo investors

fter successful visits to UK, France and Italy Food Processing Minister of India Harsimrat Kaur Badal is likely to visit Japan in next month to attract the investors. Government of India has allowed of 100 per cent FDI retail food sector earlier in June this year.

Minister in a interaction with media houses told that she is visiting all food importing nations, and those which want to invest in India. We are working towards big retailers coming, but some want homecare products also besides food to be in their stores. There’s a suggestion we are looking at that depending on what kind of investment you make at farm-gate level, a certain percentage of that may be allowed to be invested in non-food or homecare part of business. All products sold in the stores will have to be made in India. On a question of allowing sale of non-food

products categorise the stores as multi-brand she said that It is just a suggestion to allow non-food as a small percentage of the business and everything has to be made in India. For multinationals who are looking to come into food retail, this is a new model in a new country. They are hesitant, so they demanded this. I’m making a list of suggestions and concerns. It doesn’t mean we have agreed. Ultimately, the Cabinet will take a decision. But the view is that allowing non-food would increase the footfall in stores. Minister told that the we have received good response from France. Auchan, the biggest chain in France, is keen. Their model to work directly with farmers suits India. Executives from Auchan are expected to come to India in January to hold further meetings, she said. Speaking on the success of 100 per cent FDI policy in food retailing Badal said that FDI in food retail was announced in the last Budget. It got done by July. I would say the industry response has been positive. I went to the UK, France and Italy recently, and the feedback was good. But while a lot of multinationals are looking towards India, they are interested in local partners because of the different way of working here. Therefore, I wanted to have a platform for companies to meet. World Food Forum to be hosted next year in New Delhi in 2017 will serve that purpose. So, whether it’s UK’s Tesco, France’s Auchan or anybody else, they can find the right local match, she told. Apart from Future and Reliance there are lot of regional players, including from Andhra Pradesh and Maharashtra , keen on food FDI. Minister told that retail is worth $600 billion and food forms 65 per cent of it. We are looking at trebling by 2020. Processing is only 10 per cent of what we produce, while in Malaysia and the Philippines it’s 70 to 80 per cent and in the West it’s 80 per cent. We are way more ready for more than 10 per cent, she said. Minister is sure that demonetization would affect the elections positively. she said that people largely are happy and it’s true in the shops you don’t see crowds as everyone is on saving mode. People are deferring spending. We are meeting our basics. Maybe in urban areas, the consumption will come down, but it’s all temporary. As soon as market gets flooded with money, people will go back to shop, she added. Badal further said that whether it’s going to war with enemy, against narco-terrorism or corruption, an entire country suffers. When you have gone to war against black money, so entrenched over the last 70 years, of course it’s going to cause inconvenience to a whole lot of people. Some who deserve and some who don’t. On issue of heavy metal in Coke, Pepsi came up in Parliament recently, she said that we are bound to ensure safety and health of the people. Whenever such issues are raised, we ensure things are set right.

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Vol. 9, Issue 07 - December - 2016

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

FOOD PROCESSING NEWS

Mega Food Park project on fast-track

he Rs 110-crore Mega Food Park at Buggapadu (Telangana) that was mooted in 2008 by the then UPA government is finally getting off the blocks as Minister for IT, Municipal Administration and Urban Development K T Rama Rao performed Bhumi Puja. Albeit the then chief minister YS Rajasekhara Reddy formally laid the foundation stone for the food park in 2008, thereafter neither the government nor the entrepreneurs had shown little interest over the project. Initially, the authorities had earmarked 197.7 acres of government land at Buggapadu village. However, now the extent of land for the upcoming park is truncated to 60 acres. Against this backdrop, the Union Ministry of Food Processing Industries (MoFPI) revived the project in February this year. As per the profile of the Food Park, the plan is to form a core cluster for the project which includes three vital components - Central Processing Centre (CPC), Primary Processing Centres (PPCs) and the Integrated Cold Chain Network that connects the CPC with the PPCs. While the authorities proposed to set up the CPC at Buggapadu under Sathupallymandal, a PPC each was planned in Warangal, Karimnagar, Nalgonda and Khammam districts.

As per the plan, a 2,000-MT capacity Dry Warehouse to store the raw material and 4X250 MT deep freeze and sub-zero cold storage chambers will be constructed at the Central Processing Centre in Buggapadu.

Apart from this, a plan is also on the anvil to set up a cold storage unit, exclusively for chillies, in Khammam. The cost of the project is proposed to be financed through a mix of equity, grant from MoFPI under the Mega Food Parks Scheme and term loan from bank. The promoters would contribute about 27.4 per cent of the cost of project. The grant from MoFPI would be 50 per cent of eligible project cost excluding cost of land, margin money for working capital and pre-operative expenses or Rs 50 crore, whichever is lower. Telangana State Industrial Infrastructure Corporation (TSIIC) chairman GyadariBalamallu visited Buggapadu on at the behest of Tummala to expedite the works. It may be noted that TSIIC is the nodal agency for implementation of project.

Taking part in deliberations, the chief minister said that there was a huge scope of bilateral cooperation in these areas as both Punjab and Ontario had

Before five years, players were largely dependent on export market which earned significant revenues to them. However, with growing importance of frozen food in the commercial and retail sector, domestic market has also turned to be lucrative. The Quick Service Restaurants, fast food chains, hotels, and cafes from not only metros, but even from tier-II and tier-III cities are gearing up to offer their customers the finest in food along with the ambience. Hence, they have started using frozen food to serve their orders quickly and efficiently without any hassles. Retail sector is also growing with a strong compounded annual growth rate from the last

He also stressed on need of farmers' exchange programme for fast and easy transfer of technologies to the fields for introducing new and scientific farm practices to Punjabi farmers. Badal invited the leaders of food processing industry of Canada to set up their ventures in the state, adding that the Punjab government would provide full support and cooperation to them. Jeff Leal said that there was a tremendous potential for the mutual cooperation in the other allied sectors of agriculture and animal husbandry. He also assured Badal of every technical help in the arena of food technology, food processing, nutrition and Agri bio-technology.

five years. Despite the challenges being faced by the cold chain industry, the frozen food market is expected to grow due to consumer demand and many new players and brands entering into the industry. These new players will bring into new varieties of product to fulfill the consumer demand. The market is largely dominated by select national brands and some regional players. Al Kabeer, McCain Foods, Mother Dairy, Venky's, Innovative Foods, Godrej Tyson Foods etc. are some of the major players operating in the industry. Frozen foods have also witnessed rapid growth with the evolution and growth in modern retail. Modern trade/retail is a more favored shopping destination as consumers find greater variety, quality and convenient pack sizes Moreover, modern stores also provide space for better brand visibility and communication. Some of the best performing retail stores include Tesco, Spencer's, Hyper City, Food Bazaar, Easyday, DMart etc. which have extensive cold storage facilities with them. Indiaâ&#x20AC;&#x2122;s tea exports facing a downward trend as in April to September. the exports fell 5 percent from a year ago to 101.04 million kg as key buyer Pakistan trimmed purchases, the state-run Tea Board said in a statement.

Mega food park in Andhra Pradesh by Patanjali land in north coastal Andhra. Rupees 50 crore incentives has been offered by the Andhra Pradesh government to the mega food parks, apart from the various other beneficial schemes by the central government for these processing units. Also, very soon Andhra Pradesh will have its first egg production unit.

He said as both were primarily agrarian economies with very strong agriculture base so as to mutually benefit from technology transfer, cooperation and support.

Underscoring the need for students and teachers exchange programme, Badal said that the modalities in this regard could be worked out and formulated mutually by both the governments.

It was decided that both the governments would ensure the mutual trips of faculty, students and progressive farmers for better exchange of expertise in these fields. Likewise, it was also decided that University of Guelph and Punjab Agricultural University (PAU) would also explore the feasibility of better coordination in these fields.

According to the reports market is segregated into six segments like frozen vegetables, frozen snacks, frozen seafood, frozen poultry, frozen red meat and others. Frozen snacks and vegetables are the largest category in terms of sales volume whereas frozen poultry, seafood and red meat are still new to Indian consumers. There are three end users who combine to form the Indian frozen food industry; they are retail consumers, commercial businesses and exports.

demonstrated their strength and dominance in agriculture and allied farming due to their vast experience and expertise.

Badal urged Jeff Leal to carry forward the proposals mutually agreed upon by both of them to its logical end so that these should not merely confine to the papers.

During the meeting, both the governments agreed to mutually work to prepare a framework for the support and cooperation of both the states in field of diversification of agriculture, food processing, dairy fishery and piggery sector.

ise in cold chain facilities and adequate freezer space at consumer end will increase the penetration of frozen food products in

India.

It was also planned to establish a 2,500MT capacity Dry Warehouse and 2,500-MT multipurpose cold storage units in the PPCs of Warangal and Karimnagar. The proposed capacity of dry warehouses in Khammam and Nalgonda is 2,000-MT each.

Punjab and Ontario collaborate to give push to food processing o enhance agriculture diversification and food processing industry, Punjab and Ontario, province of Canada mutually agreed to work in collaboration with each other for. The decision was taken by the Punjab Chief Minister Prakash Singh Badal during a meeting with the high level delegation of Ontario province led by Minister of Agriculture Jeff Leal .

Rise in cold chain facilities increased penetration of frozen foods in India

An aqua food park will come up in the state and out of the 66 projects proposed, there are twelve aqua food parks.

atanjali group to set up a mega food park in Andhra Pradesh. They have approached the state government to allocate 200 acres in north coastal AP for the same. A similar park in going to be set in Nellore district where it has purchased about 150 acres. Apart from these two mega parks, there are proposals to set up 66 food processing units in the state in the next three years. CEO of Andhra Pradesh Food Processing Society, Y S Prasad said, "We hope that the two mega food parks will bring in an investment of about Rs.700 crore and generate 10,000 jobs." The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) will search for appropriate

The government has decided to set up 500 cold chains across the country to boost food processing sector, which grew by more than 7 per cent last year, she said. A total of 138 integrated cold chain projects were sanctioned by the government till last year. Out of this, 91 are operational. The ministry is implementing a Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure under which assistance is provided to set up integrated cold chain infrastructure for arresting post-harvest losses of horticulture & non-horticulture produce subject to a maximum grant-in-aid of Rs 10 crore per project.

Higher level assistance is provided to N.E: Minister

inister of State for Food Processing Industries, Sadhvi Niranjan Jyoti, in a written reply, informed the Rajya Sabha about the details of financial assistance, eligibility, procedure of approval of projects are available on the ministry's website.

sector in the country, including North-East India. The central schemes include mega food parks, modern abattoirs, integrated cold chain and value addition infrastructure, creation/expansion of food processing and preservation, quality assurance, and human resource and institutions.

The Ministry of Food Processing Industries is implementing a number of Central Sector Schemes for promotion and development of food processing

Under these schemes, a higher level of assistance is provided to entrepreneurs setting up project in the North-East Region, the minister said.

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

FOOD PROCESSING NEWS

Patanjali explores possibility for establishing food processing plant in Hyderabad

alvakuntla Kavitha, Member of Parliament, had submitted a request to Baba Ramdev to start food processing units in Nizamabad parliamentary constituency. So in relation to it CEO of Patanjali Ayurved, Acharya Balkrishna visited Nizamabad district. Balkrishna visited Lakkampally village near Nandipet in the Food Processing SEZ to survey the locations for the processing unit. Armoor and Balkonda regions in Nizamabad district cultivate Turmeric in about 2 Lakh acres of land contributing huge chunk to the overall turmeric production in the country. "We have surveyed the surrounding areas of Armoor, Balkonda and Nandipet, we feel the atmosphere in the region is very congenial to start a plant and we are hopeful of a positive decision towards setting up of the food processing unit in the area," Balkrishna said. Speaking on the occasion, Kavitha said "the industrial policy of Telangana state (TS-IPASS) is amongst the best in the country and it takes only 15 days for the industries to get approval and Telangana State Government has assured the speedy allotments and approvals for setting up of units." She added that "establishment of food processing plant in the region will generate employment for large number of people in the region and District Purchase Forum will be of huge advantage to the constituency.

Rising demand of processed foods is boosting processing machinery market

ood processing machinery is a complex and multi-dimensional market encompassing all the machinery and equipment used in commercial food production and packaging. The scale of the market can be imagined with respect to the ever - increasing food products. The market is sensitive to several factors such as the type of food produced and the processing method employed. The consistently rising demand and consumption of processed foods is a key driver for the market. Despite being a universal phenomenon, this demand is more specific to the developing world. The recent economic success and increasing market openness to foreign goods has radically changed the food processing sector in countries such as India and China. One important consequence of this is the rise in consumption of meat. Meat processing equipment are one of the fastest growing segment, especially in developing countries. The market also faces several challenges with regard to upgrading the equipment or complete overhaul in certain cases. Much of these changes are made to overcome difficulties associated with production capacity or due to government regulations. The Food Safety Modernization Act (FSMA) is one such legislation that is expected to have a profound impact for many machinery manufacturers. Processing machinery that comes in direct contact with food face much severe regulations. The increasing consumer focus on quality also implies use of more specialized and sophisticated equipment that are more capital intensive.

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

FOOD SAFETY

Demonetisation: latest threat to India's food security

uch of rural India is stretched thin for access to food. As the government undertakes a series of shocking policy measures to counter the adverse impacts of demonetisation, it is overlooking the severe threat that the food security of India's poor is facing from these policies. This is away from the India where Mother Dairies and KendriyaBhandars feed a few – mostly employees of the Central government, where plastic is money, where people shop with Paytm.

In the government's war against black money, the first casualties are the poor. A conservative estimate by the Engineering Export Promotion Council (EEPC) estimates current job losses at 4 lakh daily-wagers, who in the cashless, dying markets have no work. The job losses are likely to hit the construction industry too – already witnessing a slowdown – which employs more than 45 million people, mostly as informal workers. More than 90 per cent of India's workers are employed in the unorganised sector. On their shoulders they carry India's economic growth while they themselves earn modest incomes. Poverty figures are a difficult admission of India's reality. Officially, around 22 per cent of India's population was below the poverty line in 2012, while several indicators on nutrition suggest far more Indians are nutritionally vulnerable. Any policy – howsoever 'noble' in intent that disrupts their access to food have can have a disastrous impact on their food security status. Food security and nutritional status are deeply connected; it is pertinent to review some nutrition indicators. The National Family Health Survey (NFHS III) showed 43 per cent of India's children were malnourished – 55 districts in the country had more than 50 per cent of India's malnourished children under the age of five. A new NFHS survey currently delivering results shows a marginally better but pessimistic picture. The slowly changing figures over the decades show that India's malnourished children are growing up to become nutritionally challenged adults. Other indicators corroborate this. More than 55 per cent of Indian women are anemic. India's stunting figures (low height for age) are alarming with 48 per cent of Indian children qualifying as stunted. However, the data that correlates to the poverty figures of the government is on 'wasting' – the gravest of nutrition indicators which means low weight for height. One-fifth of India's children are wasted. This segment of the population faces the greatest risk and is not as wired to the mainstream as Prime Minister Narendra Modi's optimism indicates.

As the demonetisation of the higher denomination notes enters its next phase – with the exchange of old bank notes no longer permitted and banks becoming the only place for depositing and withdrawing money – a look at banking figures for India suggests that Indian people don't bank all that much. Census data show the poorest penetration of the banking sector in Manipur (29.6% of households), Meghalaya (37.5%) in the northeast, followed by Bihar and Assam at 44% each, with Odisha (45%) Madhya Pradesh (46.6%) and West Bengal following closely. Rural banking figures are lower. While more than 25 crore new accounts have been opened under the Prime Minister’s Jan Dhan Yojana scheme according to official records, it is unclear if these belong to households that did not have bank accounts prior to opening these under the scheme. The accounts were opened on the basis of identity cards or endorsement by gazetted officers, both of which are usually not available to a large portion of India's poorest people. It is difficult to understand how they are expected to sign cheques and swipe cards when they had difficulty counting their paltry earnings. This is the picture of the textile and garment sector, which employs 32 million people. A quarter of the 2.5 lakh workers in the leather industry are reported to have lost their jobs already, while around 20 per cent of the workers in the jewellery industry have been adversely affected. In this context, the demonetisation exercise is not merely an 'inconvenience' to those on the edge. It is a matter of life and death. Erratic climate conditions and job market and related food insecurity led to the passing of National Food Security Act which committed to providing food security for Indians, particularly the poor and marginalized, through the public distribution system (PDS). Although ridden with inadequacies, the PDS does manage to reach many economically deprived families. Studies have shown that PDS lists have around 60 per cent error of exclusion and 25 per cent error of wrong inclusion, while 'leakage' of subsidized grain into the open market is a common practice which makes the PDS undependable for preventing food insecurity. However, this is the only system that you have in rural India. In not extending the old currency exceptions to the PDS, the government has revealed its urban focus and its distance from India's reality. While news trickles in from across the country about people devising systems of their own such as going back to a pre-currency barter system and using the currencies of other countries, these selfdevised survival measures may exclude the most vulnerable. Deaths caused by hunger and undernutrition are hard to notice as they are disguised as common illnesses. It is unlikely that the cries of those who go over the edge will be heard in the background noise of Indian rulers' chestthumping.

Big food companies show interest in launching fortified food items

ortification means deliberately increasing the content of essential micronutrients in food to improve its quality and according to a top official of food safety regulator FSSAI big food companies like Cargill, Future group and Tata Global Beverages have shown interest in launching fortified food items to fight malnutrition. About 70 per cent of pre-school children and over 50 per cent of women suffer from anemia due to iron deficiency. Food fortification is a simple, proven, cost-effective and complementary strategy that has been used across the globe to effectively prevent vitamin and mineral deficiencies. The Food Safety and Standards Authority of India (FSSAI), which has released standards for fortification of milk, salt, edible oil, wheat flour and rice as well as logo to be used by the food companies, is now making draft standards for packaged food items and the same will be released in the next two months. Briefing media about the steps taken to promote food fortification, FSSAI CEO Pankaj Kumar Aggarwal said a special meeting on large scale

food fortification was held. The meeting was attended by Bill Gates, Cochair and Trustee of the Bill and Melinda Gates Foundation, and eight secretaries from various ministries, including health, food, HRD, food processing and women and child development. The Gates Foundation and the Tata Trusts have jointly committed their support to this programme, Aggarwal said, adding that a new website was launched. Mother Dairy is fortifying its token milk. They are the first to use logo. Cargill will launch its fortified edible oil. Tata Beverages has shown interest in fortified tea. The Future group is setting up a food park near Bengaluru and is "very keen on fortification and several states are at advanced stages of adopting fortified foods in government programmes. FSSAI has set standards for fortification of salt with iodine and iron; of vegetable oil and milk with Vitamin A and D; wheat flour and rice with iron, folic acid, zinc, vitamin B12, vitamin A and some other micronutrients.

FSSAI to come up with fortification standards for packaged food products

he Food Safety & Standards Authority of India (FSSAI) is likely to come up with fortification standards for packaged food products such as cereals and biscuits. Fortification means deliberately increasing the content of essential micronutrients such as iron, Vitamin A, Vitamin D, Iodine, etc, in a food product so as to improve its nutritional quality with minimal risk to health. The authority also showed serious concerns on those who are following the fortifying standards.

“We are discussing with the industry to bring fortification norms for processed (packaged) food products. It is more of an afterthought. We do not have much clarity on it as of now,” said an FSSAI official on the condition of anonymity. The FSSAI has already issued draft guidelines for five products — rice, salt, wheat flour, milk and edible oil. These guidelines, which were put in public domain on September 4 to invite comments and suggestions, set the minimum levels of micronutrients which should be added to these five products in order to be called ‘fortified’. FSSAI will issue the final guidelines for them once the 60-day time period for receiving public comments is over. “If a company starts a category of biscuits which is

Beverages & Food Processing Times

called ‘fortified biscuits’, it is good for the general population only. In America, there is a focus of fortification in packaged food products which are consumed for breakfast, such as cereals. But our approach to fortification in packaged foods is going to be a little different than what we have done till date for five products,” the official added. The FSSAI is expecting that the fortification of food products, which are consumed in the government programs, will be done within a year. “However, as the food industry is huge and largely unorganised, they will take a much longer time to fortify their food products,” the official said. Earlier in October, Anupriya Patel, Minister of State for Health and Family Welfare, launched the logo for “fortified food product”. “Fortification requires neither changes in existing food patterns, habits nor individual compliance. It is socioculturally acceptable and does not alter the characteristics of the food. It can be introduced quickly and can produce nutritional benefits for populations in a short period of time. It is safe and cost effective, especially if advantage is taken of the existing technology and delivery platforms,” she had said. Pawan Kumar Agarwal, Chief Executive Officer, Food Safety & Standards Authority of India (FSSAI), has earlier stated that if someone is using the “fortified food product” logo, and if they are not fortifying it as per the prescribed standards, then that company would be subjected to same penalty as for manufacturing unsafe or adulterated products.

Vol. 9, Issue 07 - December - 2016

CHOCOLATE NEWS

Mondelez International in collaboration with Fairtrade

ith an aim to expand their Cocoa Life sustainability program that runs across all Cadbury products in the UK and Ireland, Mondelez International has collaborated with Fairtrade. The industry leading sustainable cocoa farming program by Mondelez International and Fairtrade partnership will commence from May 2017. In 2012, Mondelez International launched its $400m Cocoa Life initiative and now by associating with Fairtrade, Mondelez says this will help drive greater scale and impact for cocoa farmers and their communities. This move comes after consumers growing demand to know the origin of the chocolate and other products they buy and whether cocoa farmers are adequately paid.

in the Cocoa Life programme in Ghana have seen their incomes increase by 49 per cent more than farms outside the program. President, Mondelez International - Northern Europe, Glenn Caton said “Cocoa Life builds from Cadbury’s proud heritage of sourcing cocoa sustainably, which dates back to a hundred years ago when the Cadbury family helped establish cocoa farming in Ghana. Through Cocoa Life, we want to become an accountable partner for our cocoa farmers, not just a buyer. We are directly connecting buyers to farmers, enabling them to build long-term businesses. Cocoa Life truly transforms communities by delivering real and measurable improvements for cocoa farmers.”

that they will work upon such as education on sustainability issues and “building resilience to climate change”, which farmers complain is a threat to their livelihoods.

He also added that, “We want to use our scale as the world’s largest chocolate maker to drive positive change for the communities on which we depend. We support Fairtrade’s vision to drive sustainable livelihoods through empowered farming organisations and communities and fairer terms of trade. We are proud to have Fairtrade’s support in helping us achieve this. The evolution of our partnership with Cadbury and Cocoa Life is an exciting development as it embeds Fairtrade, our values, principles and unique relationships with farmer networks, into the whole program.”

As per Mondelez International, till date Cocoa Life program has been rolled out across more than 795 cocoa farming communities around the world and independent verification shows that farmers’

The reality is that life for too many cocoa farmers remains a daily struggle against poverty, as their communities still lack many essential services and climate change poses an increasing threat

There will be a number initiatives and programs

to their livelihood and future. Hence Cocoa Life sustainability program has been initiated by

Beverages & Food Processing Times

Mondelez International to improve the lives of cocoa farmers and their communities.

Vol. 9, Issue 07 - December - 2016

BEVERAGE NEWS

India releases definitions for Liquid Flavor Market to grow carbonated fruit beverages at more than 4.2% CGAR

he Food Safety and Standards Authority of India (FSSAI) has released a definition for carbonated fruit beverages. It has notified that beverages with fruit juice quantity below 10% but not less than 5%, and 2.5% in case of lime or lemon, should be called carbonated beverages with fruit juice. Before this, FSSAI guidelines on aerated beverages did not define carbonated fruit beverages and there was no set standard that the industry could have followed. The prescribed fruit content level, however, is much higher than the industry had asked for. Indian Beverages Association, an industry lobby that bats for beverages companies, had asked the regulator to lower the fruit juice content threshold in carbonated beverages from 10% (minimum) to 3%. The definition of fruit-based carbonated beverages came more than two years after Prime Minister Narendra Modi urged multinational carbonated beverages companies, like Coca-Cola and PepsiCo, to mix natural fruit juice (at least 5%) in aerated beverages to help augment fruit sales for Indian farmers. “Millions of people buy Pepsi and Coke. I have asked these companies if they can put 5% natural juice in their drinks,” Modi had said in September 2014.

launched carbonated beverages with fruit content during the past year. Coca-Cola India, the local arm of American beverage maker Coca-Cola Co., already sells Fanta Green Mango, a carbonated drink that has 10.4% fruit content. Rival PepsiCo India Holdings Pvt. Ltd, the local arm of American food and beverages company PepsiCo Inc, sells Nimbooz Masala Soda, a juice-based (5% lemon juice) aerated beverage. Both Coca-Cola and PepsiCo have been working on more fruit-based carbonated beverages and were waiting for FSSAI to come out with clear guidelines. Both the companies have plans to launch more products in the category over the next few years. In July home-grown Dabur India Ltd entered into the fizzy drinks market by launching a range of fruit juice-based aerated drinks under the brand— Réal VOLO, which the company claims has 2025% fruit juice content. During the past few years, cola companies have seen sales of carbonated beverages being impacted with consumers opting for juices and fruit-based drinks. In 2015, juices saw a volume growth of 20.06% and a value growth of 25.78% over the previous year. Fizzy drinks, in the same period, grew 8.42% by volume and 10.82% by value.

Some of the beverages makers have already

Coke India to launch more small packs

fter 4% drop in unit case volume growth in the July-September quarter, CocaCola India is moving to sell half of the products across its portfolio in smaller packs to increase frequency of consumption which it hopes will spur slowing growth that has lately been stuck in low single digits. The beverage giant makes fizzy drinks Thums Up and Sprite, besides its marquee drink, and Minute Maid juices. Coca-Cola India President Venkatesh Kini said the company was putting out mini cans like 180 ml and mini bottles in 200 ml extensively in the market, and that the availability of 300 ml glass bottles has been scaled down and it's the 200 ml which is being predominantly distributed across traditional trade. Among juices too, 250 ml packs are being pushed over 400 ml ones. "We are proactively shaping choices aimed at portion control, innovating on existing products that are lower in sugar content and calories per serving, and looking at offering a wider range of low sugar choices. It's a process we are accelerating," he said. "In terms of availability and distribution, you'll find more of smaller packs and less of the larger packs. Eventually, the bigger single serve packs will be phased out," he added. Now, more than 40% of all the company's sales are on packs with less than 100 calories per pack. "The average consumer here is drinking maybe two bottles of Coke every year; while the industry number is about one a week. With such low consumption levels, we believe more customers will consume smaller packs — that's the expectation," Kini added. Globally, Coca-Cola has shifted its metrics from just unit case (5.5 litres) volume growth to a mix of unit case volume and revenue growth where realisation per unit case in smaller packs is higher

lobal processed food application is expected to grow at a CAGR over 5.3% up to 2024. Shift in focus towards consumer preference for ready-to-eat, processed and convenient foods along with lower preparation time preference particularly in BRICS countries and EU & North America, may fuel industry growth. APAC, led by India, Indonesia, Vietnam and China liquid flavor market size, may drive in industry development. Increase in per-capita middle class disposable income coupled with changing consumer’s lifestyle is forecast to positively influence Asia Pacific regional industry.

than in bigger packs. The company is replicating its worldwide strategy in India, too, Kini said. The India arm of the world's largest beverage maker is in the process of scaling up distribution of its 250-ml PET bottle — priced at Rs 15 and Rs 18. More than 30% of Coca-Cola's existing portfolio now comprises still beverages (juices, water, Fuse tea, Vio milk), and Kini said the company's objective is to scale that up.

Globally, Coca-Cola and other food and beverage firms are facing increasing pressure from governments over levies of sugar taxes and consumers turning to healthier, low-sugar beverages. The company reported 4% drop in unit case volume growth in the July-September quarter and 3% growth in the critical April-June quarter, which is the largest contributor to annual sales. He said while the consumption of aerated beverages has been growing, local brands are the ones that have grown dramatically. "There are 800-900 of those (local brands) selling at 50-60% less than the price of national players. A Rs 1-2 price point difference makes a 30-40% difference in consumption. The second and third quarters have been soft and we are aware of what needs to be done; but even in this period, we continued to gain share," Kini said.

On sugar reduction, Coca-Cola India plans to take Sprite Zero national and scale up Coke Zero over time, but Kini said the ability to take these brands national is limited by their consumption rate and limited shelf life. Products innovation wasn't limited to products but also packaging and equipment.

Liquid Flavor Market size was over USD 7.5 billion in 2015 and is projected to exceed USD 11.5 billion by 2024, at more than 4.2% CAGR. Rise in processed foods & beverages consumption is expected to fuel global liquid flavours market demand. Increasing alcoholic drinks, mineral water, carbonated beverages and sports & energy drinks consumption coupled with aroma and taste enhancement is likely to favour beverages application in liquid flavor market. Global beverages application was dominant and accounted for over 61% of total market revenue in 2015. Rising consumer awareness regarding ill effects of artificial food ingredients may prompt usage of organic and natural liquid flavor demand. Artificial flavor liquids market size dominated the product landscape and accounted for over 45.5% of total market revenue in 2015. Flavor extracts market is expected to witness gains at over 5.2% CAGR during the forecast timeframe. They are used in food formulations to improve nutritional content and product shelf life. Flavours and synthetic compounds processing in

laboratories are used to provide aroma and taste in baked products, beverages and confectionery. Carbonated beverages, cigarettes, processed foods & alcoholic beverages are used in artificial liquid flavor and to enhance both taste and smell components. These products are used as alternatives to natural or organic extracts. North America, led by U.S. liquid favour market size, comprised of over 36% of the global revenue in 2015. According to industry analysis, North America regional industry was generated USD 2.7 billion revenue in 2015. Change in food consumption pattern owing to consumer hectic lifestyle coupled with increasing consumer awareness for natural flavor intake is likely to have positive influence in North America liquid flavor market size growth. APAC, with dairy products, beverages and processed foods industry growth in India and China, may witness significant gains of over 6.1% CAGR up to 2024. Change in food consumption intake and rise in population along with western food acceptance may favour APAC liquid flavor market size growth. Flavor extracts find increasing application scope in energy drinks, fruit juices, flavoured water and beer. Natural liquid flavor extracts market size may witness gains at over 5.3% CAGR during the forecast timeframe. Rising health concerns and health concerns related with artificial chemicals intake may fuel natural flavor demand. Regulatory bodies such as FDA, EPA, FEMA GRAS 4778 and FSMA develop, create and imitate policies along with product use to protect environment and consumers from adverse consequences. Certifications such as Kosher and Halal are applicable to this industry, from animal sources to follow religious beliefs. Food Law was regulated in UK to restrict eatables from chemicals. WHO and FAO Food Additives committee regulates artificial components for use in synthetic product. Stringent environmental regulations pertaining to product manufacturing and scarcity supply of petrochemical feedstock cost may hinder industry profitability. Political unrest in the Middle East may hinder supply dynamics and put pressure on liquid flavor market price trend.

With focus on nutrition, PepsiCo India to add five products by next year.

y 2017, PepsiCo India will launch five products majorly focusing on nutrition and build a healthy portfolio of products. PepsiCo India VP-Nutrition Category Deepika Warrier said “We have been working on developing products after understanding the local food palette and need for whole grains and nutrition in the Indian diet. We are looking at launching 4-5 new products by end this year or beginning of next year.” She further added, “We believe in offering a range of choices to our customers. Clearly there is a ready category momentum (for nutrition backed products). We have seen that nutrition backed products are growing much faster. We need to tap that momentum.” PepsiCo will launch new products to address whole grain needs in the Indian diet, fruits and vegetables gaps, and create familiar Indian breakfast recipes healthier with oats.Quaker Oats stands prominently

Beverages & Food Processing Times

in PepsiCo's nutrition division plans. Commenting on oats category, Deepika Warrier said, “Oats is the fastest growing cereal sub-segment and is really under-penetrated and there is a huge opportunity to grow. The oats category has now reached a certain scale in the country but penetration levels are still low.As the category leader, we are taking steps to grow the segment. We have taken initiatives such as making the product more appealing for Indian taste palette and launching smaller packs priced at Rs 10 to bring in new customers,” she added. The oats market is currently pegged at Rs. 270 crores and that is less than one-third of the breakfast cereal market. PepsiCo nutrition segment includes brands like Quaker, Tropicana and Gatorade. Chef Vikas Khanna has been appointed as the nutrition brand ambassador. The company has recently launched two new flavours of oats viz Chaat style and Curry Magic.

Vol. 9, Issue 07 - December - 2016

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

SPECIAL FEATURE

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

India's Packaged

ndia’s packaged juice market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience.

www.agronfoodprocessing.com

Vol. 9, Issue 07, December 2016,

100/-

he way to turn our economy around is not by making rich people poorer, it's by making poor people richer’’ I don’t want to sound monotonous but I cannot go ahead without talking about demonetisation. Well many maybe, but I am not blind toward the mayhem it has caused especially amongst the middle class and the poor. After bearing days of long queues and cash crunch, the country still awaits better days. Prime Minister Narendra Modi’s 50day timeline is yet to see out its course. But the situation has not improved much on the ground. Demonetisation has elicited contrasting opinions among the people. By and large everyone has acknowledged that people are facing serious inconvenience on a daily basis and the scheme could’ve been implemented in a more effective manner. The poultry industry has suffered losses worth a staggering Rs 100 crore due to the drastic dip in sales in the last 20 days or so, in the wake of demonetisation. This is just one of the several effects of Modiji’s tour de force. But demonetisation will augur well for the m-commerce industry in the country and most of the retail commerce will shift to mobile in the near future, says CII Grant Thornton report. M-commerce is the buying and selling of goods and services through mobile phones. The demonetisation move was exactly the fillip the fledgling m-commerce ecosystem in India was looking for.While online banking and even mobile banking has been around for a long time, mobile wallets have made it easier to shop. From grocery to cab rides to movie tickets to food deliveries to utility bills, almost anything can be bought and paid via simple mobile apps. In another food safety verbatim, the Health Ministry informed that five different cold drinks were selected by the stratified sampling method and the samples were submitted to NTH in Kolkata for testing where lead was found in the samples along with other heavy metals like cadmium and chromium. It is claimed it is due to leaching of toxins from the bottles in which they were packaged. However an outfit representing PET container manufacturers has told the National Green Tribunal that the National Test House (NTH) has not tested samples of five different soft drinks manufactured by two major multinational companies in India. PET (polyethylene terephthalate) is used in fibres for clothing, containers for liquids and foods, thermoforming for manufacturing, and in combination with glass fiber for engineering resins. Referring to a RTI reply, PET Container Manufacturers Association (PCMA) said that NTH-Kolkata was never accredited by NABL and it has not carried out tests for detecting heavy metals — antimony, chromium, cadmium etc.National Accreditation Board for Testing and Calibration Laboratories (NABL) is a society which provides accreditation recognition for a specific task. NGO Him Jagriti Uttaranchal Welfare Society had sought the ban saying such packaging leached harmful chemicals and heavy metals into the contents. Nevertheless, PCMA had alleged that the NGO’s plea was motivated by the interests of the glass industry and not environmental concerns in filing a petition seeking ban on use of PET packaging. Meanwhile, Coca-Cola is planning to introduce aluminum bottles in the Indian market to sell its aerated drinks Coke, Coke Zero, Diet Coke and Sprite in the next three-four years. The aluminum bottle, which comes in a serving size of 200 ml and is quite popular in countries like the US, UK and China, costs about 40% more for consumers than PET bottles. While Coca-Cola and other cola maker widely use cans made with metals, aluminium bottles came into existence in 2005 and soon found its way on eBay, fashion magazines and the shopping windows of luxury retailers owing to its breakthrough and stylish design. Global e-commerce giant Amazon will now ship Amul products to consumers in the US, a move that will help the Indian dairy major to increase its exports. Amazon under its Global Selling programme will offer Amul's Ghee and GulabJamun to consumers in America. The range will gradually be increased to add other products like cheese and butter. While on Amul brand, the cooperative will launch camel milk in the next three months and will first start selling camel milk in Ahmedabad and will later launch in other cities. Two years back, Sahjeevan approached GCMMF for marketing of camel milk produced in Kutch area. A Rs 3 crore project was initiated and about Rs 70 lakh funding support was provided together by state and central governments.

Within the beverages market, the fruit-based beverages category is one of the fastest growing categories, and has grown at a CAGR of over 30 per cent over the past decade. As of March 2013, the Indian packaged juices market was valued at Rs 1,100 crore (USD 200 million) and projected to grow at a CAGR of 15 per cent over the next

three years. The Indian juice industry was pegged at US$3.5 billion in 2012 and is estimated to reach US$21.14 billion by 2018. The per capita consumption of fruit juice-based beverage is 45 litre in Germany, 42.5 litre in Switzerland and 39 litre in the US. In India, the per capita consumption is just 20 ml, which is negligible compared to other countries. Hence, there exists huge untapped potential in this segment. Shift in consumer preference towards non-carbonated fruit beverages, raising concern over obesity and other health issues, a change in lifestyle, affordability and availability of packaged juices are some of the reasons behind the rise of the packaged fruit juice market. They are slowly becoming a staple part of family breakfast, and even a must at social dos. The untapped markets in the tier-II and tier-III cities can be epicentre of growth for this sector as people in these cities still prefer fresh juices over packaged ones. The packaged fruit juices market can be divided into three sub-categories: fruit drinks, juices, and

Union Agriculture Minister Radha Mohan Singh said, "After assessing scientifically, camel milk has been recognised with the line of food grade. This will not only benefits rearers of camels but also facilitate for value-addition productions." So there is deficit of wheat in India and because of which, the govt. is mulling scrapping import duty on wheat to boost domestic supplies amid rising prices and concerns about the 2016-17 wheat crop in view of IMD's forecast of warmer winter. In September the govt had lowered wheat import duty to 10 per cent from 25 per cent till February. Private traders have imported 1.72 million tonne (MT) wheat so far and total inbound shipments are expected to cross 2 MT this year. The Food Ministry has proposed zero import duty on wheat in order to improve domestic availability and control prices and the PMO and Finance Ministry have started deliberating on this proposal seriously. The food and beverage industry is also affected by the cash crunch, but we are trying keep on with the glitches and trying to stamp out the tangled issues whole of India is facing.

Beverages & Food Processing Times

nectar drinks. Fruit drinks, which have a maximum of 30 per cent fruit content, are the highest-selling category, with a 60 per cent share of the market. Frooti, Jumpin, Maaza, etc. are the most popular products in this category. Fruit juices, on the other hand, are 100 per cent composed of fruit content, and claim a 30 per cent market share at present. In contrast, nectar drinks have between 25 and 90 per cent fruit content, but account for only about 10 per cent of the market. The rising number of health-conscious consumers

is giving a boost to fruit juices; it has been observed that consumers are shifting from fruit-based drinks to fruit juices as they consider the latter a healthier breakfast/snack option. Prime Minister Narendra Modi also suggested that multinational cola giants should help augment fruit sales for Indian farmers by adding fresh fruit juices to their fizzy drinks. India, the world's second-largest producer of fruits and vegetables, throws away fresh produce worth millions of dollars every year because of the country's lack of adequate cold storage facilities and refrigerated transport. Organised v/s Unorganised The juice business in India is highly dominated by unorganised players with over 75 per cent market share. The organised retail which has only 25 per cent of the business comprises of juice bars, juice cafes and packaged juice players. “The juice segment in India is still an unorganised market. I am part of a niche crowd, which is very health conscious. And if I look at the competition

Vol. 9, Issue 07 - December - 2016

SPECIAL FEATURE

juice market on its wheel of trying out new, they are travelling more, and they have grown an appetite of West among themselves. “Emerging trends like increased preference on wellness, the desire to spend extra on health and maintaining healthy lifestyle, especially in the middle class and strengthening Indian economy, which offers more disposable income to the masses are major catalysts that drives strong growth of the non-alcoholic beverages market in India,” shares Dhirendra Singh, MD, Manpasand Beverages. “We were witnessing that Indians are adopting western style of living and eating habits. At the same time, fruit is an inherent property which can cure a lot of disease and improve the immune system of human body. So, that’s where the idea came in my mind. I think that juice has become a substitute to food today. At the same time, it is a quick bite, saves time and gives all the required nutrition to the body,” adds Bhatt. in the market, I honestly feel that I do not have a real competitor in the market. First two years of my business was to let the product and logistics in place and I have not even started on sharing the market share presently,” adds Sinha. Meanwhile, HAS Juice Bars which started its first juice bar in 2007 has 11 outlets in Mumbai. Speaking on the same, Director Hemaang Bhhatt says, “We started our first juice bar in 2007. So far, we have 11 outlets in Mumbai. Though we were slow on expansion initially, but before opening a new outlet, we want to ensure that the previous outlet is profitable in terms of process and scalability.” Current Scenario The growing trend of fitness and keeping oneself healthy is driving the juice business in India. Over the last five years, the country has seen juice bars and juice cafes opening in India. On one hand, local players are expanding their wings and signing deals with the global majors to start their business in India and on the other hand, beverages major like PepsiCo, Coca Cola and Manpasand are investing heavily into packaged juice business. At the same, Dabur is the market leader in the Indian packaged juices market, with its brands Real and Real Active having 55 per cent share in the packaged juices market followed by PepsiCo with a 30 per cent share. “Beverages segment is the most profitable business in India as the juice market stands at Rs 1,200 crore today. Beverage business has very small model, but the output is same in comparison to a restaurant brand,” says Rivoli Sinha, Founder Director, Joost Juice Bars, which is a masterfranchisee for Boost Juice in India. Dabur is the market leader in the Indian packaged

juices market with its brands Real and Real Active. Other players include Parle, Fresh Gold, and Godrej. Some of the other brands of fruit juices and drinks include Frooti, Appy, Mazza, Minute Maid, Slice, Fresh Gold, and Del Monte. Considering the attractiveness of the segment, diversified consumer food companies such as ITC are working towards making a foray into packaged juices.

Packaged juices are gradually cementing their place in the urban household in the metros and tier I cities; however, replicating the same success in tier II and III cities is still a struggle as residents in these regions still prefer fresh juices over packaged ones because they are comparatively cheaper, and also in sync with the traditional belief that juices

On the other hand, ITC Ltd, one of the biggest FMCG major in the company is planning to invest Rs 1000 crore in dairy and juice business. The group has also acquired Bangalore-based B Natural juices to tap the fast-growing juice business in India. The company is planning to enter both 100 per cent juices and nectars with 7-8 variants.

Some companies are also offering their products in tins (eg Del Monte) and PET bottles (eg Mazza); however, they are more expensive than Tetrapaks, which adds to production costs, and, as a result, affects the market price.

Growth drivers Rise in the disposable income, people adapting the western culture, health awareness and import of fruits to India are among the top most factors to drive the juice business in India. Over the years, we have seen that people no more stick to eating traditional foods. They have become experimental in terms

ITC, PepsiCo and Coca Cola are signing great deals to enter and flourish their juice business. Manpasand Beverages, which started its operation in the year 1998, has crossed Rs 240 crore during the financial year 2012-13 with strong growth rate of 35-40 per cent per annum.

Both the partners plan to invest Rs 50 crore over the next 10 years to boost mango production by using the Ultra High Density Plantation (UHDP) technology with the involvement of about 25,000 farmers in an area of 50,000 acres.

As per studies, the most preferred pack size is the individual (small) pack which is convenient, and easy to carry and consume. These are in great demand as out-of-home consumption is on the rise. Tetrapaks are most popular among manufacturers as well as consumers.

There are several reasons behind the growth of the Indian packaged juices category: Changing consumer lifestyles, increased health awareness, hygiene concerns, growing category of informed buyers, rising disposable incomes, booming modern retail, habitual purchase, and introduction to new flavours.

Way ahead Today every player in the segment is trying something. They are coming up with new flavours and tastes to meet the demand of their customers. Sourcing and growing the fresh food and vegetables have become the main strategy for these players.

In May 2014, Hindustan Coca Cola Beverages announced that it aims to start mango juice business in partnership with Jain Irrigation after success of mango farming initiative 'Unnati' launched in 2011.

Meanwhile, ITC Ltd, one of the biggest FMCG majors is planning to invest Rs 1,000 crore in dairy and juice businesses. The group has also acquired Bangalore-based B Natural juices to tap the fastgrowing juice business in India. The company is planning to enter into both 100 per cent juices and nectars with 7-8 variants.

Fruit juices have created a space for themselves in regular household menus, as a part of a family’s breakfast, social gatherings, and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend.

categories in the beverages segment growing at a CAGR of over 25- 30 per cent over the past decade. According to a consulting firm Technopak, the Indian packaged juices market is valued at Rs 1,100 crore ($200 million) and is projected to grow at a CAGR of ~15 per cent over the next three years.

“ITC will soon roll out juices across the country, whereas, the entry into dairy business will be in the late next quarter. We plan to regionalise both juices and dairy products,” shares Chitranjan Dar, CEO, Foods, ITC. are best consumed freshly pressed. Manufacturers are also adopting a number of other strategies to attract more consumers. Some companies are planning to launch fruit juices in cans that are preferred over bottles by the younger generation. Fruit juice companies are also trying to rope in popular Indian movie stars or sports personalities as brand ambassadors for their products as part of a proven marketing strategy. The growing trend of fitness and keeping one self healthy is driving the juice business in India. Over the last five years, the country has seen juice bars and juice cafes opening in India. It is appropriate to say that the packaged juices market in India is still evolving. As there are many national and international brands on the verge of succeeding and expanding further into the field, new entrants can also cash in on this opportunity by positioning/promoting packaged and bottled fruit juices as part of the consumers’ daily diet. Simultaneously, it is critical to ensure affordability for consumers, while maintaining the hygienic aspects and quality of products throughout the year. The fruit juice market is one of the fastest growing

Beverages & Food Processing Times

Thus, we can say that Indian juice markets are heavily pouring profits into the business with participation of new as well as existing players in the market. In the years to come, we can see players working upon unique strategies to make their products more popular. The Indian non-alcoholic market is currently estimated to be around Rs 50,000 crore, which includes mineral water, fruit juices, soft drinks, dairy drinks and hot beverages among others. The fruit juice market is roughly around 10 per cent of the Indian non-alcoholic beverages market and is expected to grow by 35-40 per cent in the near future. Among all challenges, it is difficult to control the cost of production at the price points of juices, primarily because of rising food inflation. The continuous, year-long supply of raw materials, and the non-stop production of juices for the full season, is another production-linked issue which needs to be managed carefully. Also of vital importance is controlling transportation and logistics costs.

Vol. 9, Issue 07 - December - 2016

CHOCOLATE NEWS

Indian candy market to grow at 9% till 2021

he candy market in India is anticipated to grow at a CAGR of over 9% during 2016 - 2021, because rising middle class

households, coupled with increasing working as well as youth population. The most dominant segment in the country's candy market is sugar

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candy. Candy is a rich sweet confection made with sugar and often flavoured or combined with fruits or nuts. Rapid modernization, continuously rising innovative and premium product launches, growing e-commerce market coupled with expanding organized retail channels and synchronized distribution networks are projected to drive candy market in India in the coming years.

is expected to further increase during 2016-2021. Rapid urbanization across the country has led to the increase in brand consciousness and inclination towards western brands leading to the emergence of premium candy segments in the country.

The sugar candy segment is expected to maintain its dominance due to continuing launch of innovative products as well as aggressive branding initiatives undertaken by leading market players. Preference for premium chocolate candies as gifts on festivals and functions is also growing considerably across the country due to increasing marketing initiatives to position chocolate candies as a product of indulgence rather than impulse product. In 2015, organized sector accounted for a majority share in India candy market; and the segment's dominance

This increase in the healthcare expenditure is attributed to rising disposable incomes. Moreover, according to central intelligence agency, India median age by gender in 2016 is 27.6 years with male at 26.9 years and females at 28.3 years.

According to world bank, in 2015, the healthcare expenditure in India stood at 4.90% of the India's GDP, as compared to 4.70% in 2014.

Due to these reasons coupled with rising urban population share, which was over 50% in 2015, the demand for candy in the country is expected to significantly grow during the forecast period.

With Friberg brand Parle enters luxury chocolate segment

ith the launch of Friberg - a superpremium chocolate brand imported from Belgium and Switzerland, Parle has forayed into luxury chocolate segment.

The launch of the new chocolate brand is inspired by the growing demand for luxury chocolate offerings and changing consumer preferences from traditional sweets to premium chocolates as gifting options during the festive season. The company has also launched Belgian wafer thins which are a first of its kind for the Indian market. The bar format comes in three different Swiss chocolate flavours which include Lait

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Suisse Chocolat, Noir Suisse Chocolat and Lait Caramel Chocolat. Priced at Rs 350 for 125 gms in the wafer format and 90 gms in the bar format, Friberg has been launched in Mumbai, Delhi, Bengaluru, Ahmedabad, Chennai and Hyderabad in select stores. Parle Products has presence in biscuits, confectionery and snacks segments with brands like Monaco, Krack Jack, Hide & Seek, Milano, Mango Bite and Melody and is now looking to capture the premium chocolate category with the launch of Friberg.

Vol. 9, Issue 07 - December - 2016

TRADE NEWS

Tata Global Beverages removes Cyrus Mistry as chairman

n a major escalation of boardroom brawl at the Tata Group, Cyrus Mistry was voted out as chairman by the board of the Tata Global Beverages, the second listed firm of USD 103-billion Group to remove him. Seven out of 10 directors at the board meeting of Tata Global Beverages, the maker of Tata Tea and Coffee, voted for removal of Mistry as chairman of the company, TGBL said in a regulatory filing. Last week, Tata Consultancy Services (TCS) said Mistry, who was abruptly sacked as the chairman of Tata group's holding company, has been removed and replaced by Ishaat Hussain in the interim. Tata Global, the owner of Tetley tea brand, said seven of the 10 members present at its board meeting had voted for Mistry's removal as chairman and that the board had appointed Harish Bhat, an old Tata hand and the company's non-

executive director, as its chairman. Mistry's statement said the outcome of the meeting was "nothing but a repeat of the illegality that the board of directors of Tata Sons did on October 24" when he was jettisoned as group chief. His contention was the agenda for meeting did not include the subject of his removal as chairman, just as it had not figured on Tata Sons' board agenda earlier, suggesting absence of transparency in the process. "The Tatas continue to demonstrate lack of respect for the due process of law," Mistry said.

Commenting on the board's abrupt move to introduce the proposal to remove Mistry, Sandeep Parekh, a former Sebi executive director, said even if something urgent which could not be provided in the notice had to be introduced, the permission of the chairperson was required. Mistry continues to be a director of Tata Global. The parent, Tata Sons, has not yet instructed Global to call a shareholder meet for Mistry's removal as a director, as it did with other group

companies like TCS, Tata Steel, Tata Chemicals and Tata Motors, all of who have been asked to convene shareholder meets to strip Mistry of his directorships. Tata Sons would now need the support of a few shareholding blocs including financial institutions to back their move. The Tata Global board meeting lasted two hours in Bombay House, the group's headquarters. Of the six independent directors, Ireena Vittal did not attend the meeting, a source said. Curiously enough, the quarterly financial results of Tata Global released to stock exchanges has been signed by Mistry. For the chairman to validate the results requires the support of all board members. Tata Global's consolidated net profit for the quarter ended September of fiscal 2017 was up 60% at Rs 140 crore, from a total income of Rs 1,626 crore. When the board gathered, Bhat had proposed S K Santhanakrishnan, a non-independent director, to be the chairman of the meeting. The proposal was ruled out since there was already a chairman present. When the proposal to remove Mistry was sought to be moved, it was ruled out by Mistry since it was not on the agenda. New Silk Route partner Darius Pandole and Analjit Singh too opposed it, terming it as illegal. The independent directors who backed the move were Tafe chairman Mallika Srinivasan, who is also on the board of Tata Steel, former RBI deputy governor V Leeladhar and ex-vigilance commissioner Ranjana Kumar. "I don't know who is right or wrong, but we didn't want hostility between the parent and the company to remain," said S Santhanakrishnan, chairman of Catholic Syrian Bank and a nonindependent director, who supported Tata Sons. Santhanakrishnanan confirmed that the proposal to remove Mistry was not on the agenda but added that rules allow new proposals to be considered in a board meeting. Anil Singhvi, chairman of Ican Investment Advisors, termed Mistry's removal as 'unfortunate'. "If the board had full confidence in Mistry for four years, what transpired to remove him as the chairman? Haven't the board considered Tata Global's results, which were also announced ?" he asked. Singhvi, a shareholder of Tata Global, said more than the Tatas, minority shareholders as a group are the biggest shareholder in Tata Global. "This is a fit case where the government should nominate a director representing minority shareholders in the company," he said.

Pakistan trade body hints at reviewing ties with India

Pakistan trade body has announced that it would consider suspending trade with India if the current hostile situation did not improve soon.

The entire Pakistani business community, he said, was united to take any decision and given the tense situation in the region, it was not possible to continue trade relations with India.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Abdul Rauf Alam said that Pakistan had no compulsions of any sort to continue business and trade relations with India under the current hostile conditions.

He pointed out the role of the Saarc Chamber of Commerce and Industry and said that it left them with no choice but to promote trade relations with ECO and D-8 countries.

Nestle India: FMCG industry will rebound in second half of the fiscal

estle India expects the FMCG industry to fare better on the back of good monsoon and benefits trickling in from the 7th Pay Commission after witnessing a decline in the first half of the fiscal.The company is cautious that rising commodity prices could pose as a challenge to the pricing strategy of various players in the industry. Many FMCG companies have witnessed either low or middle single digit growth but not a single firm has clocked double digit growth. So, the first half has clearly seen a lower growth of the industry, he added. Nestle India Chairman and MD Suresh Narayanan said, “the growth in the FMCG industry, at least in the first half of this year, has actually declined as compared to the previous year.” However, Narayanan said there was optimism in the industry for a better show in the second half of the year compared to the first.“Clearly, there are two or three expectations that seem to improve the sentiment for the period coming ahead of us” he said, citing reports of near satisfactory monsoon

that would boost rural market demand, as the primary reason. “The number two (reason) is the benefits of 7th Pay Commission. Even if majority goes into consumer durables, as is the expectations, some of them would trickle to consumer good products, and the third is OROP that is also likely to have some benefit in terms of consumer products,” Narayanan said. “The overall climate for inflation seems to be reasonable now. If this continues, it augurs well for the consumers’ industry going forward,” he added. When asked about the decline in growth of FMCG industry during the first half of the fiscal, he said “One of the reasons, which has been given, is overall levels of innovations have not been significant enough in the FMCG industry and that's not giving a significant benefit in terms of consumer uptick.” The second one, he said, "in India, still the income redistribution is an issue. Rural market was badly impacted because of weaker monsoon resulting in more tepid income."

Future Group Ventured with Booker, plans to open 70 stores

ishore Biyani’s Future Group is partnering British wholesaler Booker Group to open cash and carry stores, in a move that will bring it in direct competition with the likes of Walmart India and Metro Cash & Carry. Joint venture will open 60-70 stores in three years to sell merchandise to local kirana stores, hotels and catering firms.

"Booker India has developed one of the lowest cost distribution networks for FMCG products through its cash and carry network in India," said Kishore Biyani, Vice-Chairman, FCL that sells two dozen products across categories with brands such as Golden Harvest, Tasty Treat, Sunkist, Clean Mate and Care Mate. "We will leverage their expertise in engaging with small, neighbourhood retailers and reach out to them with FMCG brands and products developed by our organisation." The JV is part of Biyani's wider strategy to reach Rs 20,000 crore in sales from in-house brands by 2021 and push these higher margins products outside its own 800-odd stores. While Future

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Group operates around 13 million square feet of retail space with an annual customer footfall of 295 million, it sells own brands to Tata StarBazaar, Metro and Spar. While Booker entered India in 2009, it has not expanded its operations aggressively and now has six stores in Maharashtra and Gujarat. FCL the food and FMCG arm of Future Group, operates retail chains such as KB's Fairprice, Big Apple, Aadhaar&Nilgiri's and also has a food processing facility at Tumkur, Karnataka, FCL posted a 27% increase in net sales at Rs438 crore during quarter ended September with net loss of Rs 4 lakh. "Together Booker and Future Group can scale up the business and reach out to a much larger number of retailers and customers in India," Charles Wilson, Chief Executive Office, Booker Group said With at least four players, Walmart, Metro, Bookers and Reliance -operating 92 cash and carry stores, nearly 2.6% of traditional trade in all consumer product goods (CPG) moves through organised wholesale. The Rs 6,800 crore market has been growing at 13%, faster than modern trade, albeit on a lower base. The Indian unit of the world's largest retailer, WalMart Stores posted sales of Rs 3996.8 crore for fifteen months ended March 2016 while Metro AG had a turnover of Rs 3,439.9 crore for 2013-14. Future Group also owns Aadhaar, a rural and semiurban wholesale and distribution format that has 56 franchisees stores with sales of Rs191.74 crore last fiscal.

Vol. 9, Issue 07 - December - 2016

SNACK NEWS

LT Foods to set up snacks facility in JV Japan's Kameda

manufacturing capabilities of rice-based snacks,” AshwaniArora, managing director of LT Foods, told. He said once established in India, the JV will consider exports to markets in South Asia .

The JV will leverage LT Foods’ distribution and logistics network and Kameda has proprietary

Kameda is the global leader in rice based snacks and it commands about 30 percent market share in Japan and has a prominent presence in the glutenfree cracker market in the US. LT Foods and Kameda believe the large and expanding urban middle-class in India are ripe for a healthy and

T Foods the maker of Daawat branded rice, and leading Japanese snack company Kameda Seika will jointly invest $10 million in a 51:49 joint venture to sell rice-based snacks in India. “Competing with brands such as Pepsi-Co’s Lays is difficult in snacks. So we decided to create a new category through the association with Kameda.

tasty alternative to fried potatoes and wheat based snacks.

market, it will look at exporting the product to regional markets in South Asia.

Through this partnership, the JV will introduce rice based snacks with proprietary Japanese technologies developed over 30 years. These products have been highly successful in South East Asia and the US. The joint venture plans to launch four different flavours customized for palate of Indian consumers. Once JV has cultivated and established a stable position enough in Indian

LT Food’s existing strong distribution network and supply chain was a key attraction for its partner Kameda. The JV, which aims to create a rice-based snack food category in the country, will start manufacturing the snack range in Sonepat later in the next financial year. Apart from investing equity, Kameda will help the joint venture in technical matters relating to the manufacturing, flavour development and package design as well as lend its experience in marketing rice based snacks globally. As per Mckinsey report, in 2014 Indian sweet & salt (S&S) snacks market was estimated to be Rs 15,000 crores. As middle class income expands, consumption of S&S snacks is expected to more than double from current levels over the next five years to Rs 38,000 crores. With increase in volume and price, the nonbranded segment of the market which constitutes for 33 percent is expected to shrink further. Research has shown that in the last 2 years, only 5 new variants have been introduced by pan-India snack food players. Leveraging on this, a few new entrants are expected to capture meaningful portion of the market. With a completely differentiated set of products, the LT Foods-Kameda JV is aiming to be a leading new entrant. Both companies believe that health and wellness are among the primary drivers of such new category.

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

DAIRY NEWS

Indian Dairy sector stressed Amul to pay its milk on need to enhance the usage producer directly into their of stainless steel bank accounts

ndian Dairy Association (IDA), the apex body of the dairy industry in the country, stressed on the need to enhance the usage of stainless steel in the dairy industry to ensure safe and healthy dairy products. Taking its commitment ahead to enhance usage of standard products, Bureau of Indian Standards has also released the new standards for design and development of stainless steel milk cans. The seminar on “Stainless Steel in Dairy; to enhance Food Safety”, jointly organised by Indian Stainless Steel Development Association (ISSDA) and Indian Dairy Association in alliance with Jindal Stainless, asserted on the significance of using stainless steel in dairy. Present on the occasion were Dr. G. S. Rajorhia, Vice PresidentIndian Dairy Association, Shri K. K. Pahuja, President, Indian Stainless Steel Development Association and Mr. Ashok Gupta, Director Jindal Stainless (Hisar) Limited among others.

impact on public health as few materials lead to food contamination. Stainless Steel has emerged as an alternate material for various usages in the dairy sector and approximately 8000-10,000MT of Stainless Steel is used for storage, processing and transportation equipments every year in India. CODEX, the international food standards under WHO, has also recommended stainless steel as a preferred material for storage of food and transportation. CODEX is a collection of internationally recognized standards, codes of practice, guidelines, and other recommendations relating to foods, food production, and food safety. Commenting on this occasion, Mr. K.K Pahuja, President, ISSDA, “Research demonstrates that compared to other materials, Stainless Steel is the most hygienic and biologically suitable material for milk processing and storage. Due to increased focus on hygiene, quality and food safety standards, usage of stainless steel has grown. Our effort is to increase the pace of adoption of stainless steel in this area to ensure a better public health.” Dr. G S Rajorhia, Vice President, Indian Dairy Association said, “Stainless Steel is an integral part of dairy industry. Its erosion and corrosion free characteristic is recognized by the dairy industry for total food safety and public health.”

Hygiene and quality is increasingly becoming a common concern for milk and milk products which is consumed by all age groups. 70% of the milk production pertains to unorganized sector. India being the largest producer of Milk at 146.3 million tonnes/day demands specified guidelines for the segment when it comes to health. The focus of the unorganized sector is more on commercial aspect than the hygiene and health issue which leads to use of unfavorable materials for processing and storage. Various research reports emphasize that use of hazardous materials in dairy industry have serious

Mr. Ashok Gupta, Director, Jindal Stainless (Hisar) Limited said “We appreciate the efforts taken by regulators to ensure quality standards and with the new guidelines issued by BIS for milk cans , the scenario will change in the dairy sector as well. Taking a cue from these efforts, we, at Jindal stainless along with can producers, have developed a low cost prototype (204 Cu- food grade approved) of Stainless Steel milk can which is not only better in quality but also low cost. As 204Cu is already approved as food grade by BIS under IS 15997(Grade N2), we believe that it can deliver high quality milk at an affordable cost to the end customer."

Amazon to sell Amul products in US

ndian major Dairy Amul is all set to increase its global export boundaries as global e-commerce giant Amazon will now ship Amul products to consumers in the US. Under its partnership announced, Amazon under its Global Selling programme will offer Amul's Ghee and Gulab Jamun to consumers in America. The range will gradually be increased to add other products like cheese and butter. GCMMF (Amul) Managing Director R S Sodhi said, There are 30 lakh Indian NRIs in the US. We have been exporting our dairy products to the US for the last 20 years but it was mostly to local stores with Indian population in the vicinity. With this partnership, we are targeting to reach every nook and corner of the American market. He added that Amul exports Rs 30-35 crore worth of dairy products to the US market annually. "We are looking at increasing our export, which is 1-2 per cent of our turnover currently," he said. GCMMF, which sells its products under the Amul brand, is owned by over 3.6 million milk producers. Its turnover stood at over Rs 23,000

crore in FY2015-16. Amazon had launched its 'Global Selling Program' in India in May last year. It facilitates access for Indian sellers to sell their products to consumers across the globe. The programme has witnessed 70 per cent increase in seller base as compared to last year with over 18,000 Indian sellers selling over 25 million products globally across nine of Amazon's global marketplaces. The programme offers end-to-end solution that includes assisting sellers with imaging, logistics, tax advisory and remittance. "We are excited to help fuel the brand's growth in the US market by offering unprecedented reach to consumers. Through this programme, we will offer Amul an end-to-end solution and help the brand cater to the growing appetite for quality Indian food products amongst global consumers," Amazon India Director and GM (Seller Services) Gopal Pillai said.

CMMF, which sells products under the Amul brand, said it has taken all necessary steps to pay its milk producer members directly into their bank accounts. Already, 60 perc ent of its milk producer members have bank accounts and the cooperative is taking steps to open new ones for those who do not have at present, it said.

asked all dairy unions to help farmers open their accounts in the next couple of months. GCMMF and its 18 associated milk unions are paying around Rs 450 crore on a weekly basis to 36 lakh milk producers through 18,500 milk cooperatives in Gujarat, Patel added. Noting that rural milk producers are facing shortage of cash due to demonetisation of currency notes and restriction by RBI on District Cooperative Banks, Patel said, "However, central and state governments have made alternative arrangements with the help of RBI for cash disbursement through District Cooperative Banks to milk producers." This will definitely help milk producers meet their daily expenses related to animal husbandry and other requirements, he hoped.

"In view of the demonetisation of currency notes by central government, we have made necessary arrangement to pay milk producer members for their milk price through direct credit in their bank account," Gujarat Cooperative Milk Marketing Federation (GCMMF) Chairman Jethabhai Patel said. The cooperative is in the process of opening bank accounts of those milk producers who do not have them at present, he said, adding that GCMMF has

Patel also said there has been no impact of demonetisation of currency notes on milk procurement and sale of milk in the market so far. "In fact, milk procurement of member unions of GCMMF has increased," he added. The cooperative has nearly 60 processing plants, of which 40 are in Gujarat only. There are 18 member unions of GCMMF associated with more than 36 lakh farmers across 18,600 villages of Gujarat.

Mehbooba concerned about the fodder issues in J&K

or development of livestock and dairy sectors in the state, Jammu & Kashmir Chief Minister Mehbooba Mufti chaired a meeting with state’s Animal Welfare Board. She said livestock and dairy sectors have the potential for generation of employment and asked devising means to tap this major resource of the rural economy. Mehbooba also directed dovetailing various schemes like RKVY and other national dairy development schemes to achieve the desired results. She suggested identification of villages, particularly in border areas, to be adopted as milk villages where facilities of treatment and welfare of livestock, besides market support, would be made available. This could be done on the lines of saffron village, apple village, basmati village schemes which would not only institutionalise the otherwise routine village activity but also creates job opportunities for the rural youth, the Chief Minister said. Mehbooba also asked for linking these villages with cooperative units so that after

their “successful operationalisation” these model villages can be replicated across the state. She suggested that a portion of funds from the Constituency Development Fund (CDF) of the legislators can be used on the initiative or one village in each constituency can be adopted by respective legislators so that these milk or livestock villages are developed in convergence mode in a short time and without any major financial hassle. Mehbooba asked the departments concerned to work together to hammer out what needs to be done to address the issues of fodder, livestock health and marketing in these villages. The Chief Minister also enquired about the status of construction of new abattoirs in Srinagar and Jammu and issued instructions for maintaining hygiene and cleanliness at these places. She was informed that Rs 28 crore ultra-modern abattoir in Srinagar and two modern abattoirs in Jammu have been approved by the Centre and work on these would start soon.

Heritage Foods signs agreement to purchase the dairy business of Reliance Retail

yderabad-based Heritage Foods has signed an agreement to purchase the dairy business of Reliance Retail through slump sale, and Reliance Retail will continue to trade in dairy products, including that of Heritage, through its retail and wholesale channels after the acquisition. Reliance Retail’s dairy procurement, processing and distribution business across the country is operated under two brands – Dairy Life and Dairy Pure. The nine-year-old dairy platform of Reliance Retail offers a range of products including packed milk, flavoured milk, butter, ghee, curd, dairy whitener, sweets, and skimmed milk powder. It

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generated revenue of Rs 553 crore during the last financial year. It currently procures 225,000 litres of milk a day from 2,400 villages across 10 states. According to the statement, the managements of both the companies believe that this acquisition will tap new opportunities in Punjab, Uttarakhand and Rajasthan, along with the existing states. The deal is subject to regulatory approvals. Heritage Foods was founded by Andhra Pradesh Chief Minister N Chandrababu Naidu in 1992. And its revenues stood at Rs 641.3 crore in the quarter ended September 2016 against Rs 586.8 crore a year ago.

Vol. 9, Issue 07 - December - 2016

Packaging Quality Standard-FSSC 22000, BRC/Packaging

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

NEWS

Value to the farmers and quality to the consumers

ovind Milk and Milk Products Pvt. Ltd.was set up by the erstwhile princely family of Naik Nimbalkars. Sanjeev Naik Nimbalkar being acutely aware of the needs of the people Sanjeev Nimbalkar (Chairman Govind Milk ) in Phaltan, near Pune, ensured that the growth of the company also led to the socio-economic development in the geographical area in and around the company, a radius of about 150 kilometers. Naik Nimbalkar’s concern for the farmers’ well-being and the partnership approach adopted by him in the first phase of growth have contributed in a large measure to the overall development of Phaltan. Having established the production processes which gave quality products to the consumer, Govind which was largely an input driven company started its transformation towards becoming a pan India and global brand. This transformation is being led by Rajiv Mitra the Managing Director of the company. For the first time in twenty years of its existence an external expert professional was brought in to lead the company in its next phase of growth. Mitra is passionate about making Govind a market leader in the dairy industry. The vision of the organization was and continues to be, as Rajiv Mitra says, ‘Value to the farmers and quality to the consumers.’ It is this very vision that is providing the fodder for transformation into the next phase of growth. The new goals for growth of the company set by

Mitra are non - linear. He envisions a larger pan India and global presence and believes that the strategy for this would be to create a Govind brand to reach an increased consumer Rajiv Mitra base and for instant (MD Govind Milk) recall. He also believes that for the success of this approach, the employees would need to develop a different mindset; a new set of competencies need to be nurtured and a culture of meritocracy has to take over.Mitra is providing the leadership for this transformation by introducing and implementing several initiatives for organizational change such as induction of right talent, implementation of technology, introduction of focused consulting,strengthening a performance oriented culture and introduction of work processes that impacts the employees and their productivity. At Govind, the best procurement and processing systems are employed to process milk and produce milk products. A fully integrated, state-of-the-art dairy processing unit at par with International standards, with the capacity to process in excess of 10 lac liters of milk every day, is currently in use in Phaltan. The other Govind milk processing and packing units are in Turbhe (near Mumbai), Ahmednagar and Yamkanmardi (Karnataka). Govind helps dairy farmers to source funds from financial institutions by standing guarantee to it. The wealth of knowledge developed by the research scientists and veterinarians at Govind is passed on to the dairy farmers that helps in

improving quality and quantity of milk. The unique partnering model used by Govind, has benefited multiple stakeholders. The quality of life and economics of the dairy farmer has improved. This has benefited banks as farmer is able to repay loans in time. Insurance companies stand to gain as cows are healthier and less prone to disease or death. The consumer gets better quality milk and milk products. The Dairy activities of Govind have generated substantial employment in the area of Phaltan. Govind has launched a new brand campaign drawn on the line of a refreshed brand positioning, that is The Happy Makers. In the words of Mitra, “We as a brand spread the chain of happiness by taking responsibility of our farmers, partners and eventually our consumers. Our farmers are free and happy as we have taught them a new way of dairying and therefore a new way of living. We have introduced new techniques and processes that have made them self-reliant”. A farmer is happy only when his livestock is happy and contented. Govind’s team of dedicated and qualified veterinarians who monitor the health of the cows so that they are happy and free. Happy cows produce happy and stress-free milk that ultimately reaches the consumer as happy and healthy drink and eatables. Govind Milk and Milk Products Pvt. Ltd established two decades back, with an intention to

help the farmers since the Milk Federation could not provide adequate support to the dairy farmers, has emerged as a renowned, quality conscious company for milk and milk products in the state of Maharashtra and adjoining states. Govind supplies skimmed milk powder, whole milk powder, ghee to whole of the country in the retail markets and also as an ingredient to major Indian and international manufacturer of milk products. In the recent past they won contracts to supply ghee to Tirupati Balaji temple used for preparing prasadamfor the devotees. Rajiv Mitra and the leadership of the company

sound extremely bullish and look well set to taking this major regional player to levels hitherto unknown in the pan Indian market. The dairy sector needs such committed, values based yet performance oriented players like Govind.

Paddy to be procured from central purchasing centres from Dec 10

est Bengal will procure paddy from 330 central purchasing centres (CPC) at blocks meeting with the district magistrates and ADM (food), though harvesting is very low due to severe liquidity crunch. Fifty-five per cent of paddy is harvested and only twentytwo kharif paddy has been reaped till November 25. The government plans to divert 100-day job labourers to fields for reaping the crops. Bengal's food minister Jyotipriya Mullick said: " After the paddy is procured, it will go to rice mills.

Each entry at rice mill will generate three challans, one of which comes straight to food department in Kolkata. Immediately, the fund will be transferred to the bank account of the farmer through RTGS system. The entire procurement will be monitored at multiple levels so no corruption creeps in."He added that, "We have Rs 5,000 crore with the department for procurement. Moreover, we are taking a loan of Rs 1,000 crore from the West Bengal Finance Development Corporation. Besides, the Centre is supposed to give us Rs 2,008 crore this year and Rs 481 crore against

last year's due. The state has set the minimum support price of Rs 1,490 per quintal (.1 tonne). It has also set a procurement target of 52 lakh tonne paddy which will yield 41.20 lakh tonne rice. The state's requirement out of the procurement is 32 lakh tonne. Six lakh tonne of rice will be sold to Jharkhand. Rest of the rice will be given to state food safety pool and central food safety pool.” Mullick also alerted about the fake job racket in the name of paddy procurement. This plays havoc with the youths in rural Bengal as they charge large sum of money and dupe many job-seekers

in the name of recruitment for civic volunteers by the food department. “We cannot recruit civic volunteers. Civic volunteers are there with the police department. In case of procurement, the civic volunteers will be roped in from the respective superintendent of police of the district. They floated fake websites and I have ordered inquiry by CID."

2 mn tonne pulses to be bought by Govt. buffer stock by next

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he government is looking to achieve its buffer stock target of 2 million tonnes of pulses by June next year, which will be used in case of price rise. So far about 6 lakh tonnes of pulses have been purchased so far and will be able to complete the entire 2 million tonnes by June 2017. Pulses production is estimated to increase to more than 20 million tonnes in 2016-17. So, govt will be able to procure one million tonne of pulses from domestic market for buffer stock and rest one million tonnes will be imported. The country has imported about 3.5 million tonnes so far this fiscal, of which 0.4 million tonne is by public sector trading agencies. Govt will ensure domestic availability of 24-25 million tonnes of pulses. India imported nearly six million tonne pulses last fiscal to meet the domestic demand. Pulses prices had skyrocketed to Rs 200 per kg, but the rates have now fallen significantly. The government is coming up with a new Consumer Protection Act to safeguard the interest of buyers and hoped that the same will be passed in the current Parliament session.

Vol. 9, Issue 07 - December - 2016

FRUITS & VEGETABLE NEWS

Himachal growers celebrate 100 years of growing apples

pple growers in Himachal Pradesh celebrated a hundred years of fruitful efforts of cultivating delicious and luscious varieties of the fruit in the state, while the state government did not mark the centenary. The fruit’s cultivation in Himachal Pradesh, with more than 90 per cent of the produce going to the domestic market, has brought prosperity to the cultivators over the past half century, say experts. ‘The apple growers of Kotgarh and its nearby areas celebrated 100 successful years of apple cultivation at a function,’ cultivator and gram panchayat head Amar Singh Nalwa told. He said the first apple orchard in the state was planted in Kotgarh in Thanedar panchayat, some 85 km from Shimla, on this day in 1916 and that had helped Kotgarh to progress economically, socially and also marked its presence on the global map. Nalwa, the brain behind the function, said it was organised at the initiative of the local growers and there was no celebration from the government. State’s apple boom is credited to Samuel Evans Stokes (later named Satyanand Stokes), an American missionary who first introduced the high-quality apples in the mid-altitude hills. From a small orchard in Kotgarh, Stokes promoted the apple cultivation in other areas too, especially in upper Shimla that currently alone accounts for 80 per cent of state’s total apple production. Since then the hill state has been synonymous with apples that alone constitute 89 per cent of the state’s fruit economy of Rs 3,500 crore ($520 million). Stokes’s daughter-in-law and Horticulture Minister Vidya Stokes is now managing the family’s orchard located here. She attended the function, which also saw a photo exhibition on Satyanand Stokes’ life as a local apple cultivator. Apple grower Vinod Chauhan of Banot village in the Kotgarh area said Satyanand Stokes, who came to India as a missionary in 1905 during the Kangra earthquake, later decided to settle in Kotgarh. He had purchased a huge chunk of land where he planted apple rootstocks brought from the US. Before opting for apple cultivation, the locals were planting mainly wheat, maize and pulses. ‘Initially the locals were doubtful about the success of apple cultivation in the area. Seeing the success in the orchard of Stokes, some of the locals opted its cultivation in the early 1930s,’ said Chauhan, whose fifth generation is also settled in Kotgarh. By 1960s, he said, the entire region bloomed with apple cultivation and that mainly brought unprecedented prosperity. Currently, the Kotgarh-Thanedar area is among those with the highest per capita income in Southeast Asia. The locals have diversified the apple crop by growing cherries, apricots, almonds and nectarines. Besides Shimla, most of the apple cultivation is concentrated in the districts of Kullu, Mandi, Lahaul and Spiti, Kinnaur and Chamba. Surveys of the state horticulture department show the productivity of apple ranges from 6 to 11.5 tonnes per hectare in the state, in comparison to 35 to 40 tonnes per hectare in more advanced countries. The area under apple cultivation in Himachal Pradesh has increased from 3,025 hectares in 1960-61 to 109,553 hectares in 2014-15, which constitutes more than 49 per cent of the total area under fruit cultivation.

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Vol. 9, Issue 07 - December - 2016

NEWS

Marine Hydrocolloids Launches Spreadable Agar Agar – Wonder Gel

ARINE HYDROCOLLOIDS previously named as Marine Chemicals is in the field of manufacturing Agar Agar for the last 35 years, and they are the largest exporter of Agar Agar in India. Marine Hydrocolloids is today synonymous with Agar. They have recently developed a spreadable type Agar Agar in the Indian market branded as WONDER GEL, which is a thermally modified agar agar. As the name itself indicates the use of this product in various food production is imparting wonderful favourable change in the texture, spreadabilty, creaminess, mouth fullness feeling etc. Marine Hydrocolloids is having a series of WONDER GEL for various applications as below:

Spreadable Agar -Agar Type WONDER GEL is a unique functional ingredient obtained by transforming the rigid structure of native agar agar with no chemical treatment to give a softer and creamy texture which still maintaining the natural benefits of seafood fibre. WONDER GEL is an excellent alternative for partial or total replacement of traditional animal-based gelling agents and other expensive hydrocolloids to provide a particularly delicate and succulent mouth feel with smooth thixotropic

flow. Application benefits and functional properties of spreadable Agar Agar type WONDER GEL. • Low Gel Strength • Dissolves completely at lower temperature (7580o C) • Low gelling point (33—35oC) • Thermo reversible gel. • Highly spreadable gel. • Does not require gelling aids (eg. KCI in standard K-carragennan) • 100% BSE (Bovine Spongiform Encephalopathy) – free • High content of natural dietary Fibres (contains up to 70% total dietary fibre) • High clarity with neutral taste and odour. • It imparts a pleasantly smooth, creamy, fullbodied mouth feel • High water-binding capacity to minimize syneresis and offers a good and homogenous structure in the final products. • Excellent synergy with sugar, dairy products and other hydrocolloids (i.e Low methoxyl pectin) • Suitable for various Cultural, Religious, and Dietary preferences (vegan, vegetarian) • Replacer for animal gelatin, LM pectin, iota carrageenan Spreadable Agar Agar type WONDER GEL is a perfect vegetable substitute traditional gelatin with the following additional benefit of lower dosage, longer shelf life and no religious issues as it is 100 per cent vegetable origin. Similarly WONDER GEL is having following advantages over agar agar gel, like lower gel strength, lower dissolution temperature and better spreadability and creaminess. WONDER GEL can replace pectin in many applications (Eg. Glaze preparation) with the

additional advantages of no special condition for gelatin, lesser time for setting and easy to dissolve. With the introduction of spreadable Agar agar

Beverages & Food Processing Times

type WONDER GEL Marine Hydrocolloids is expecting a remarkable improvement in the quality of food products in the Indian market.

Vol. 9, Issue 07 - December - 2016

NEWS

India is a promising market for liquid food

a huge variety of dairy products and sweet. We manufacture premium quality products such as Lassi, Paneer, Ghee, Curd etc. We also have sweets (mithai), ice creams, and kulfis. We provide a wide range of high quality products to our customers that make us a one-stop dairy solution for them.

hat is the present scenario of the liquid food market in India? Liquid food and beverage processing industry in India has seen phenomenal Saheb Singh Bajaj Director progress in recent Punjab Sind Foods (India) PVT LTD. years. It is being consumed increasingly and the quality of the products is even higher. India is widely recognized as a promising market for the liquid food and beverage industry. • How do you see this market in the next five years? Liquid food market will surely grow, as consumers are gaining knowledge about the product they are consuming or wish to consume. As I said India is a promising market for liquid food, more firms will enter this segment as they can see the high potential for this market. You will get a wide range of liquid food products to choose from.The market will be down for a short span due to demonetisation but

• What makes you different from other players? Our only focus is on delivering premium quality products to our customers, Punjab Sind is topnotch when it comes to quality. We invest a lot in product development, in terms of raw materials used for its taste and mouthfeel; giving our customers a better product experience when they visit Punjab Sind. Moreover, Punjab Sind’s focus is on developing its retail outlets unlike other firms who focus on their distribution channel. will increase in the long run. • New international players are facing towards Indian market, what new technologies areyou adopting to compete with them? As the government policies have changed due to 100% FDI and with a homogeneous pattern of taxation as GST all over India, the foreign companies will be more enticed to enter the largest consumer market. Also in our company,we have installed state-ofthe-art machines to get the best products and the complete plant is fully automised as it enables us to keep the hygiene levels at the best. •What is the consumption pattern for liquid foods, do you think low per capita consumption affects the Indian market? Consumption of liquid foodin India has shown an upward trend during the past decade. Moreover, there will always be an upward trend since in India we have a pattern in our food habits to consume milk and milk products. I see no cause in the per capita going down and its effects. • Brief us about the product portfolio of your company. At PunjabSind we have

We are the one to promote, first time in India VITAMIN “A” and VITAMAIN “D” MILK. Also, OMEGA 3 YOGURTS in differentflavours. • Tell us about your expansion plans. How much will you be investing for the same? We are spreading our wings in different markets other than Mumbai, and of course strengthening our base in the city. We have invested in improving our infrastructure, production plant, and giving a fresh look to Punjab Sind. • Do you have any plans to venture into new segments? Currently our focus is to develop our retail and yes, we are open for new business opportunities. Manan Bajaj - Vice President, Planning & Consulting Paradigm Services Pvt. Ltd. •What is the present scenario of the liquid food Manan Bajaj General market in India? Manager The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a highgrowth and high-profit sector due to its immense

potential for value addition, particularly within the food processing industry. The food industry is currently valued at US$ 39.71 billion and is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65.4 billion by 2018. Food and grocery account for around 31 per cent of India’s consumption basket. As food industry is growing in India and liquid food industry is also contributing in it. • How do you see this market in the next five years? Market is set to shift from unorganised sector to organised sector. The market of non-alcoholic beverages and health beverages is fast growing and will see remarkable growth in coming years. Importance of water in human life is known to everyone and all drink beverages to quench their thirst, health benefits of water and off course due to medicinal benefits of beverages. FSSAI allows functional foods with nutraceuticals and there is tremendous scope for new product development with beverages containing ingredients that would reduce risk of diseases like cardiovascular diseases, cancer, hypertension, diabetes, age related muscular degeneration etc. • New international players are facing towards Indian market, what new technologies you are adopting to compete with them? As international players are looking towards Indian market due to rich resources, this will definitely change the industry scenario as we will have to compete with global players. For this we need to be better aligned to global best practices and government &industry initiatives.We are all set for healthy competition and must focus on new developments. • What is the consumption pattern for liquid foods, do you think still low per capita consumption effects the Indian market? Water is very important ingredient of meal as it has many functions to perform in the human body like that of to regulate body temperature, lubricate joints, carry nutrients and oxygen to cells and helps in dissolving minerals and other nutrients to make them accessible to body and many other health benefits. Hence it is bound to grow on faster pace with different products like Coconut Water (NarialPani), Lassi and Butter Milk, NimbuPani, Aam Panna, Jal Jeera, Kokam Sharbatetc in different packaging that will increase the consumption levels of beverages in India. This will increase per capita consumption and will surely impact the beverage industry in good way. • Brief us about the product portfolio of your company. Paradigm with team of experts from industry have been involved in setting up factories aligned to global benchmarks, quality product safety, social accountability system. To ensure continuous compliance to the best practices, spreading knowledge throughout the industry with class room session, audio-visual CDs, self-explanatory signages, etc.

Heinz Power Sprouts launched by Kraft Heinz in India

high-nutrition health drink Heinz Power Sprouts launched Kraft Heinz in India is developed with the power of sprouted grains. Heinz Power Sprouts is available in two flavours - Honey Dates and Chocolate. The health drink is available in all rural

and urban stores in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, West Bengal. It is priced at INR230 (US$3.44) and they come in 500 grams refill packs.

the product are soaked and sprouted for up to 48 hours and then slow roasted to unlock the rich and delicious flavour that both kids and adults will relish."

Kraft Heinz said. "It contains higher amounts of dietary fibre and aids digestion, prevents overeating and makes one feel fuller for a longer span of time. Barley is rich in fibre and is also a source of calcium. Wheat is a rich source of energy while soybean is a source of superior quality of protein. It contains all the essential amino acids necessary for human nutrition. The whole grains used in

The company claimed the ingredients ‘support physical and mental growth’. Ragi is considered a rich source of calcium - significant factor for bone development. Kraft Heinz added, sprouting is traditionally known to increase the nutrition of grains. For the new product two sprouted grains, ragi and barley, have been used, along with soya and wheat.

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

NEWS

Coca-Cola to cut sugar levels in its soft drinks

Organised and branded food market to grow in the next few years

n completion of 77 years in the industry, here is a candid conversation with Mr. Girish Chitale, Managing Partner of Chitale Group. Dairy farming has been the Group’s forte and they have Grish Chitale Managing striven to elevate it to the Partner Chitale Group level of a full-fledged industry. Research and development has always been their primary focus. Q. In which year, did Chitale group enter the market and how was the beginning? Chitale group made humble beginnings in 1939, since the past 77 years we have a strong market presence. This group was started by my grandfather Mr. Bhaskar Ganesh Chitale in a small village called Bhilawadi with 200 litres of milk per day. Today the company processes 2.4 lakh litres of milk per day. Q. Could you please brief me about your product portfolio of your company? We have range of products and Chitale group has a few companies under its belt of which milk is the main company producing milk and milk products. The milk products range consist of fresh milk, shrikhand, ghee, cheese, paneer, variety of lassi, pure milk. Chitale Foods manufactures instant mixes like gulab jamun, meduwada mix, idli mix, khaman mix, and jalebi mix. Then we have Chitale Agro Industries Pvt Ltd that handles mango pulp and other pulp processing. Annually we process 7000-8000 tonnes of fruits. Q. What are the export statistics in the current financial year? We are mainly into the domestic market, and our export is through agencies for the mango pulp and other processed items. Our subsidy company -Chitale Bandhu Mithaiwale manufactures bakarwadi, chivda, other namkeens and mithais products for the market. Q. How do you see the market in the next 5 years? The market is basically growing because purchasing power of the consumers is increasing. The energy and food requirement has seen a rise in the recent years. Due to change in lifestyle pattern, there is preference for ready-to-eat and ready-tocook products is more. Organised and branded food items will have a good business in the years to come. Q. With automation now in the industry, how has that helped in the production output?

Indeed, automation has helped a lot in production output but many Indian products are not standardised to Western style of recipes, wherein the international players have ready-made solutions for automation. For those who can adopt the western technology and convert it for Indian recipes. Many Indian companies are upgrading technologies for Indian manufacturers, hence now-a-days you can see a lot of namkeens and sweetmeats, dairy products which are indigenous and made on machines. The texture and quality is the same, only the output has increased. Tell us about your expansion plans. There are plans to expand in the ready-to-eat, ready-to-cook segment, different derivatives of Indian food, ready-to-eat gulab jamuns and rasgullas, dairy products, cheese. Our area of priority will be indigenous and Indian products. Hence, we have plans to enter the new segments in the market.

oca-Cola is trying to cut sugar levels in its soft drinks, hoping to bring back consumers who are spending less on impulse purchases and turning to healthier diets. Sales at the world’s largest beverage maker slumped in the July-September quarter in India and were a drag on the company’s betterperforming markets in the Asia Pacific region. Unit case volume growth included 4% growth in Japan and 2% growth in China, partially offset by a 4% decline in India. Coca-Cola’s research and development teams have been sounded off to fast-track testing drinks with artificial and natural sweeteners, now that use of natural sweeteners such as Stevia is allowed in India, said an official with direct knowledge of the matter. The beverage maker, which pilottested Sprite Zero last year, will make it available nationally and aims to reduce sugar in drinks including Fanta before next summer.

“The company’s bottlers have been told to accelerate production lines for zero-sugar and diet drinks,” the official added. Smaller variants of cans and bottles are also being tested for rollout on an urgent basis. Apart from Coke Zero and Diet Coke, the company doesn’t sell any low-sugar or zero-sugar aerated beverages all over India. The moves follow a global announcement by Coca-Cola to reduce sugar content in fizzy drinks on the back of escalating pressure from health activists and governments talking of a sugar tax across markets, including India. Last week, rival PepsiCo said it would cut sugar and salt across its brands within a decade. The company has over 200 reformulation initiatives under way to reduce sugar and is taking multiple actions to shape choice, to address changing consumer preferences around added sugar while working proactively with governments to provide positive solutions.

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PepsiCo franchise bottler Varun Beverages lists below issue price

isted at Rs. 430 on the National Stock Exchange (NSE), Varun Beverages is 3.4% below its issue price of Rs 445 per share. A combined 1.79 million shares changed hands on the counter on BSE and NSE. The stock was trading at Rs 426, down 4% against its issue price. It hit a high of Rs 432 and low of Rs 417 on the NSE so far. Varun Beverages, PepsiCo's largest franchise bottler through initial public offer (IPO) raised Rs 1,113 crore. The issue was oversubscribed 1.86 times at a price band of Rs 440-445 per share. Qualified Institutional Buyers (QIBs) subscribed 4.94 times the portion that was aside for them. NonInstitutional Investors (NIIs) and Retail Investors portion was undersubscribed. The subscription of NIIs came in at 42%, whereas retail investor quota was subscribed 79%. Varun beverages is one of the largest franchisees of carbonated and non-carbonated beverages sold under brands owned by PepsiCo outside America. Being the sole bottler and distributor for Pepsi in India, it accounts for 45% volume in the northern and eastern India.

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Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

NEWS

IDSA welcomes new standards for health supplements of FSSAI

ndian Direct Selling Association (IDSA) has said the formulation of new standards for health supplements and nutraceuticals by food regulator FSSAI would help bring clarity about the products being sold to consumers and also encourage member companies to launch new products.

products based on the new standards. IDSA Secretary General Amit Chadha said, "due to the lack of clarity, our member companies had kept on hold some products that they wanted to introduce in the Indian market," adding that the new norms would bring relief to all IDSA members dealing in these products.

IDSA added that this is a crucial step towards food regulatory in the country. These regulations will be enforced from January 2018.

The regulations have given exhaustive list of ingredients which are permissible in health supplements and nutraceutical products, the association said. "Labelling thus will become a very important aspect for all the companies. Also, since the regulations have specified type of health claims and labelling requirement for such products,

The Food Safety and Standards Authority of India (FSSAI) operationalized with immediate effect new standards for eight categories of products, including health supplements and nutraceuticals. It will now start granting licences and approve

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it would benefit the consumers the most as they will be able to make the appropriate choices as per their requirement," said VivekKatoch, Vice-Chairman of IDSA. The association's Chairman Jitendra Jagota said that most of its member companies deal in food products, nutraceuticals and dietary supplements.

Roha paves the way into natural extracts

Roha, manufacturers and distributor of food colours, takes a strategic step in Europe by acquiring Essential SRL in Italy

oha, one of the leading global manufacturers and marketers in thefood colours segment has announced theacquisition of Italy based Essential SRL,a leading manufacturer of Plant and Fruits based natural colouringand flavouring ingredients. This is a strategic shift towards diversification into the fast evolving industry for extracts which has clearly shown being the trend in key markets of the company. There is an increasing awareness throughout the world about the use of nature based sustainable ingredients. In that context, Roha has seized the opportune momentto expand into this category of exclusive plant and fruits based coloursand flavours extracts through the acquisition of Essential SRL. A big investor in R&D and process driven technologies, Roha has turned a new leaf in its specialized portfolio of natural and synthetic colours, one that is sure to serve its long term strategy of organic diversification. The trend towards clean label products continue to drive the innovation in colouring and flavouring ingredients in Europe and globally and with this strategic acquisition, Roha will also be able to be

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an important player in this fast growing segment of the market. Essentials, driving the advancement of extraction technologies will assist Roha in further expansion ofits product portfolio and develop natural colouring aromatic products offering the ingredients for clean label foods to the customers. Founded in Tuscany a decade ago, it is situated at the heart of the Italian Renaissance; a place deeply entrenched in natural food traditions. Essential boosts of eclectic mix of young enthusiastic researchers who are thrilled with the acquisition and determined to grow along with Roha. Roha is equally ecstatic to work with the experts from Essentials exuding vigorous energy, unwavering resilience with theability to respond quickly and conducting ad hoc study while also being driven by the voracious need to explore new avenues. Roha, which has always taken pride in innovation and convergence of ideas with a focus to keep ahead of the market in terms of products and services, seems to have met its objective to create future ready products for its ever-growing global customer base.

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Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

Beverages & Food Processing Times

Vol. 9, Issue 07 - December - 2016

Chitale's New Flavoured Milk - Rose, Keshar and Butterscotch available all over !

Full Cream Shrikhand Dahi Ghee Cheese Paneer Lassi Milk Powder Alphonso Mango Pulp Flavoured Milk Instant Mixes Bakarwadi Chiwada Namkeen Items

EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

MARKETING EXECUTIVE Dhiraj Dubey

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Seema Shaikh

GRAPHIC DESIGNER Naved H.Kazmi

121, 1st Floor, Rassaz, Multiplex, Mira Road (E), Thane -401107. Tel: +91-22-28115068 /28555069. Email:info@agronfoodprocessing .com, Website :www.agronfoodprocessing.com Printed, Published By -Firoz Haider Naqvi, RNI no- MAHENG13830 Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase -1, New Delhi -110028, Reg Office :103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office: F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi -110025 The views expressed in this issue are those of the contributors and not necessarily those of the news paper though every care has been taken to ensure the accuracy and authenticity of information, "Beverages & Food Processing Times" is however not responsible for damages caused by misinterpretation of information expressed and implied with in the pages of this issue. All disputes are to be referred to Mumbai jurisdiction

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