Beverages & Food Processing July 2017

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Ice cream & Expo 2017

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15th-16th Sepetember 2017 Bombay Exhibition Center, Nesco, Goregaon (E), Mumbai

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Badal laid foundation of maize-based food park in Punjab

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Food Park and Infra Limited at village Rehana Jattan. It will boost job opportunities and environment conservation.

Badal said that the project will leverage an additional investment of about Rs 250 crore in 25-30 food processing units in the park and generate turnover of Rs 450-500 crore annually.

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ood Processing Minister Harsimrat Kaur Badal laid the foundation stone of Rs 123.7 crore mega food park with focus on maize processing in Kapurthala district, Punjab.

The permission to set up a mega food park was denied because the district was declared a 'dark zone' because of slow desertification and overexploitation of water due to cash crops, the minister said in a statement.

Badal said “since this would be a maize-based mega food park will promote crop diversification and water conservation. Special efforts been made to get the necessary approval from the Ministry of Water Resources, River Development and Ganga Rejuvenation.

The park is being developed by Sukhjit Mega

The park will provide direct and indirect employment to 5,000 persons and benefit about 25,000 farmers.

Set up in an area of 55 acres, the first maize-based park is being built with an investment of Rs 123.7 crore with a grant of Rs 50 crore by Union Food Processing Industries Ministry for multipurpose cold storage of 3,000 metric tonnes, Individually Quick Frozen (IQF) and Deep Freezer 1 metric tonne/hour capacity, sorting and grading yard of 2,000 sq.m and Food Testing Lab. Badal also mentioned that there is an urgent need towards maize and the government would relentlessly work to make maize as the third viable staple crop of Punjab after wheat and rice.

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Vol. 10, Issue 02 - July- 2017

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Vol. 10, Issue 02 - July- 2017

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Vol. 10, Issue 02 - July- 2017

FOOD PROCESSING NEWS

LT Foods opens rice processing Nanotechnology in food industry to nearly triple in plant in Netherlands value to $20.4 billion by 2020

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eading basmati rice firm LT Foods said it has commenced operations of its first rice processing plant at Rotterdam, Netherlands. It sells basmati rice under Daawat brand and has invested USD 15 million in the plant with an initial capacity of 60,000 tonnes. LT Foods plans to expand its geographical footprint in important markets of Europe and UK through this plant by increasing its sales from the current 5,000 tonnes to 60,000 tonnes over the next three years, it said in a statement. The new plant would be manufacturing a wide range of rice, including popular varieties like Basmati, Thai, Jasmine and American rice. LT Foods has collaborated with Rotterdam Partners, The Port of Rotterdam Authority and Netherlands Foreign Investment Agency for the initiative.

LT Foods CEO and Managing Director Ashwani Arora said, “Europe and UK are critical markets for LT Foods for our future growth and we intend to make deep inroads in these markets by making our most popular rice brand Daawat a household name. The location of the plant was

also critical for us as Rotterdam will provide us easy access to whole of Europe and UK. We want to exponentially increase our geographical reach and product portfolio in these markets by offering our food products.”

The company has already launched Daawat brand in six countries in 2017 and plans to expand its product offerings and portfolio globally. LT Foods Chairman and Managing Director Vijay Kumar Arora said, “This would be our first plant in Europe and we are very excited about the opportunity. The plant would generate new job opportunities in the country and help us expand our geographical footprint across Europe and UK.”

Nanotechnology refers to controlling compounds on a molecular scale measured in nanometers, or millionths of meters. In the food industry, the technology has excited manufacturers as its potential uses have been explored, such as producing stronger flavors or colors, improving the bioavailability of nutrients, and detecting bacteria in packaging.

However, early enthusiasm from researchers and product developers was met with pushback from consumers who were concerned about the technology’s safety. Since then, the FDA has released guidelines on using nanotechnology in food, but the industry has been wary about how it communicates nanotech-based innovation with consumers.

Nanotechnology in the food industry is expected to nearly triple in value to $20.4 billion by 2020, with several emerging areas for innovation and engineered nanotech compounds could offer great benefits in ingredients particularly for increased

solubility and bioavailability as well as in food packaging with antimicrobial surfaces and sensors that change color when food begins to degrade.

In the food sector, there has been a 40% increase in publications and a 90% increase in patent filings involving nanotechnology in the past two decades.

More than 1,000 companies now have an R&D focus on nanotechnology-based products. Future applications could include immobilizing enzymes to improve their efficiency and reuse, and using nanoscale structures to create new food textures.

Nanoscale compounds in food are not new.

They exist naturally in milk, with nanoscale casein particles responsible for its fat stability.

Meanwhile, more than 1,600 consumer products contain engineered nanoscale particles, according to an inventory run by The Project on Emerging Nanotechnologies. They are already widely used in the food packaging sector to help ensure food quality and safety. Nanotech-based sensors can detect and measure the presence of oxygen or bacteria, such as listeria.

In the ingredient sector, nanotechnology is still more widely used in supplements. However, nanoencapsulation could be used to protect sensitive compounds like vitamins, minerals, antioxidants and polyunsaturated fatty acids so they could be delivered only when they reach the gut. That would improve how they are absorbed by the body, and reduce their impact on a product’s taste and appearance.

Communicating the benefits of nanotechnology in food is still one of the industry’s biggest challenges, and some say it is slowing development in the sector. However, with diverse applications covering everything from improved food safety to better nutrition, reduced food waste, and biodegradable packaging, it is inevitable that consumers will start to see more nanoscale compounds in consumer products in the coming years.

NGO files PIL to serve food on “weight basis”

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ujarat Khedut Hitrakshak Samiti, a Baroda based NGO has filed a PIL in Gujarat high court asking it to direct Hotels/ Restaurants to serve food on “weight basis” in place of “plate basis”. The PIL no is 106/2017 2017 vs. State of Gujarat and Legal metrology department.

The PIL is due for hearing on 5th June 2017. It is thus important for the food industry to take legal advice and engage an advocate to represent in such matter.

As if such a rule is implemented, it will be very difficult for the hotels/ restaurants / food joints/ fast food parlors to contrivance system of serving food on weight basis as against the per plate system that is there now.

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Vol. 10, Issue 02 - July- 2017

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Vol. 10, Issue 02, July 2017,

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MOFPI establishes four First MITS Mega Food Park members GST Facilitation Cell inaugurated in Odisha to guide the food industry

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o Guide about new tax regime, the Ministry of Food Processing Industries has established a four member GST Facilitation Cell at its office. The ministry has created a GST cell for the purpose of execution and facilitating rollout of GST with immediate effect.

The GST facilitation cell will help in the rollout of the levy to the major industry and business associations related to MoFPI. The cell will be headed by Shri Bijaya Kumar Behera, Economic Advisor and Shri G Srinivasan, senior marketing officer, Shri S N Ahmed, Assistant Director, Shri Bikram Nath, Assistant Director as its Members.

This cell will be the first point of contact to address any issue being faced by any sector related to the ministry. The GST cell will be equipped with the complete knowledge of the relevant GST Act, rules, rate structure etc.

The Ministry is in the process of organizing several programmes for the industry to alert associates about GST, and has also planned to conduct seminars to disseminate information about the new tax regime.

The members of the GST Facilitation Cell can be accessed through Toll Free No 1800111175 or on Askon GSTFPI.

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nion Minister for Food Processing Industries Harsimrat Kaur Badal inaugurated first Mega Food Park in Odisha, set up at an investment of Rs 80.17 crore to benefit tribal farmers. She said, “The MITS Mega Food Park at Rayagada will generate an annual turnover of about Rs 500 crore and provide employment for 5,000 people and benefit 25,000 farmers.” Accompanied by Petroleum and Natural Gas minister Dharmendra Pradhan and Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti, Badal said this is the seventh Mega Food Park operationalised in the last three years by the NDA government.

country.

“Mega Food Parks create modern infrastructure facilities for food processing along the value chain from farm to market with strong forward and backward linkages through a cluster based approach,” she said. Common facilities and enabling infrastructure is created at Central Processing Centre and facilities for primary processing and storage is created near the farm in the form of Primary Processing Centers (PPCs) and Collection Centers (CCs).

“The Mega Food Park will leverage an additional investment of about Rs 250 crore in 25-30 food processing units in the park.” The Ministry of Food Processing Industries is focusing to boost the food processing industry so that agriculture sector grows exponentially and become a major contributor to doubling the farmers’ income and Make In India initiative of the government.

Under the Scheme, Government of India provides financial assistance upto Rs 50 Crore per Mega Food Park project. The Rayagada mega food park spread over 50.05 acre of land. The food park is having facilities of fully operational industrial sheds for SMEs, developed industrial plots for lease to food processing units, Rice Processing Complex of 12 TPH, Dry Ware-House of 10,000 MT, Cold Store of 2500 MT, Multi Fruit Processing facility and other food processing facilities and others.

In a bid to give a major boost to the food processing sector by adding value and reducing food wastage at each stage of the supply chain with focus on perishables, she said adding that her ministry is implementing Mega Food Park Scheme in the

The Park also has a common administrative building for office and other uses by the entrepreneurs and 6 Primary Processing Centres (PPCs) at Kashipur, Padampur, Umerkote, Koraput, Digapahandi and Khordha having facilities for primary processing.

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Vol. 10, Issue 02 - July- 2017

FOOD PROCESSING NEWS

Odisha CM seeks to set up NIFTM

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disha Chief Minister Naveen Patnaik sought steps by the Centre to set up a National Institute of Food Technology, Entrepreneurship & Management (NIFTM) in the state that has a huge potential in the sector.

Patnaik said in a letter to Union Minister of Food Processing Industries Harsimrat Kaur Badal. “As you may be aware, Odisha with 10 agro-climatic zones, has a huge potential for the food processing sector. The state of Odisha is not only surplus in production of rice but also has substantial output of maize, horticulture produce, spices like ginger and turmeric and sea food items.”

A food park is already operational at Khorda with certain popular food processing units like

Britannia, Indo-Nissan, ITC Ltd, Parle Agro and Coca Cola India. Patnaik added, “The MITS Mega Food Park at Rayagada is ready to commence its operations and the Sea Food Park at Deras near Bhubaneswar is at an advanced stage of execution.

Eastern Nutriments Ltd is also in the process of development of another food park at Ramdaspur near Cuttack.”

“In view of the fast growing agro-food processing sector, there is an imminent need for setting up of a National Institute of Food Processing in the state. I would, therefore, request you to consider sanctioning of a National Institute of Food Technology, Entrepreneurship & Management (NIFTM) in Odisha,” Patnaik said in his letter.

Energy efficiency in the food industry Decentralised supply concepts and renewable energy sources pave the way for the climate change

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n the scope of the Paris climate protection agreement, Germany has committed itself to reduce its greenhouse gas emissions by 2030 by 55 per cent compared to the level of 1990. Only two things can help here: Designing the processes as energy-saving and efficiently as possible and relying on renewable energy. Which technologies do the food and beverage manufacturers need to reduce the consumption of energy in the production processes? Anuga FoodTec from 20 to 23 March 2018 in Cologne will provide the answers to this question.

Everyone is talking about the energy turnaround.

At Malzers in Gelsenkirchen this principle has long since become everyday routine. For two and a half million Euro, the industrial bakery installed a gas-driven combined heat and power (CHP) plant including a twelve-cylinder engine, which drives a generator to produce energy. Since then, combined with a photovoltaic system spanning 7,000 square metres, Malzers has been generating around three quarters of the required energy consumption itself. Furthermore, the CHP plant provides heat, refrigeration and steam and is coupled with an absorption cooling system - in this way the waste heat that is not needed in the summer can be implemented to refrigerate the raw materials. The fact that the company reduces its carbon dioxide emissions by 2,000 tonnes a year demonstrates that this is not purely conceived as an economic solution, but also protects the environment.

Components for a sustainable energy supply The coupling of power and heat is one of the key technologies demonstrated at Anuga FoodTec that enables the food manufacturers to become less dependent on energy suppliers. In Germany, the final energy consumption of the industry has remained at a constant level of around 60 terawatt hours a year for several years.

The rising energy prices are becoming an everincreasing cost factor, where each saved kilowatt hour counts. The average share of the energy costs in the value chain of the milk industry is around five to eight per cent, in the meat processing industry it is up to 15 per cent. Against this backdrop, investments in the implementation of highly efficient CHP systems are as a rule amortised within two to six years.

However, the companies only remain competitive if they succeed in integrating more photovoltaic systems or biogas plants and cogeneration units into the operational power supply system long-term. Intelligent systems take care of the coordination between the generation, distribution, storage, and consumption of the decentrally produced power.

The correlation between the energy turnaround and the fourth industrial revolution becomes apparent at the latest here, because the networked production in the smart factory also guarantees

a higher transparency of the energy flows. This close coupling of the food production to the energy industry via intelligent power grids (smart grids) contributes to the energy turnaround that is not to be underestimated and offers the company a significant saving potential. Thanks to the intelligent network control they can flexibly react to seasonal fluctuations in the demand and avoid expensive peak loads.

Use of energy from the environment Industry 4.0 is proving to be a direct pacemaker for the energy turnaround at field level. More sensors are implemented for the continual monitoring of ramified production plants, which in turn don't need a battery since they send their data by radio transmission. They directly "harvest" the required energy from the environment via energy harvesting.

This means processes that transform the energy available on-site from temperature gradients, solar radiation, or mechanical movements into usable energy.

An example here is the low energy sensor BlueTEG of the Fraunhofer Institute for Integrated Circuits IIS. It measures values such as the ambient temperature or acceleration rates and sends these to a tablet via Bluetooth. It uses the temperature difference between a source of heat and the environment to gain the electrical energy needed to power the electronics. In this way, autark, maintenance-free and wireless systems with almost unlimited stand-by times become reality.

The areas of application include among others sensor networks for the monitoring of machines and plants (condition monitoring), tracking systems and sensors for building automation. The market of the energy harvesting systems is still in a very early phase, however the keyword will be present at the stands of many exhibitors from the automation section at the Cologne fair grounds.

The basis for more energy efficiency From the field level through to the production planning - the implementation of an IT-supported energy management system according to DIN EN ISO 50001 is always the starting point for considerable savings. This enables food manufacturers to determine, document and continually improve the consumption of their plants. As scalable systems they can be integrated into the process control system at any time in the form of add-ons.

Thus, in addition to plants for the generation of energy and the sensors for monitoring the operating states, at Anuga FoodTec in Cologne the focus will also be on the corresponding software solutions.

They are what initially enable the producers to sustainably improved processes, permanently increase efficiency and thus save costs as well as reduce the greenhouse gas emissions.

Govt aims to make India food factory of the world

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ood Processing Minister Harsimrat Kaur Badal said the government wants to make India a ‘food factory’ of the world and is fully committed to provide transparent environment to investors. Present at the foundation stone for a mega food park being developed by KINFRA at Palakkad in Kerala, Badal said the government has made food processing a major thrust area of Make in India initiative. “The present government is fully committed to providing an environment that is smooth, transparent and easy for investors wanting to start an enterprise in India in a bid to make the country a resilient food economy and Food Factory of the world.”

The food park is being set up on 78.68 acres at a cost of Rs 119.02 crore. “Giving a big push to the infrastructure development for food processing in the state of Kerala, foundation stone of two mega food parks are being developed by Kerala Industrial Infrastructure Development Corporation (KINFRA) at Palakkad and other by Kerala State Industrial Development Corporation (KSIDC) at Alappuzha has been laid," a statement from the ministry of food processing said.

The foundation stone for the food park being developed

by KSIDC at Alappuzha was laid by Chief Minister of Kerala Pinarayi Vijayan.

This is being set up on 68.18 acre of land at the cost of Rs 129.15 crore. “Government of India is providing financial assistance of Rs 50 crore to each of the projects.

Each of the Parks will also provide direct and indirect employment to 5,000 people and benefit about 25,000 farmers in the Central Processing Centre (CPC) and Primary Processing Centres (PPC) catchment areas," the statement added.

Minister for Food Processing Industries said that the modern infrastructure for food processing created at the food parks will benefit the farmers, growers, processors, and consumers of Kerala and prove to be a big boost to the growth of the food processing sector in Kerala. Badal said, each of the mega food parks will leverage an additional investment of about Rs 250 crore in 25-30 food processing units in the park and generate a turnover of about Rs 450-500 crore annually.

MOFPI launches two mega food parks in Kerala

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o boost the food processing industry and enhancing its infrastructure development In the state of Kerala, two mega food parks foundation stone has been put. One being developed by Kerala Industrial Infrastructure Development Corporation (KINFRA) at Palakkad and other by Kerala State Industrial Development Corporation (KSIDC) at Alappuzha .

Two separate ceremonies were held at Palakkad and Alappuzha by Smt. Harsimrat Kaur Badal, Minister of Food Processing Industries in the presence of Pinarayi Vijayan, Hon'ble Chief Minister, Kerala. Both the Mega Food Parks have been sanctioned by the present government.

Speaking on the occasion Harsimrat Kaur Badal said that the Ministry of Food Processing Industries will be focusing on boosting the food processing industry so that agriculture sector grows exponentially and become a major contributor to doubling farmers income and Make In India initiative of the government.

To give a major boost to the food processing sector by adding value and reducing food wastage at each stage of the supply chain with particular focus on perishables, Ministry of Food Processing Industries is implementing Mega Food Park Scheme in the country. Mega Food Parks create modern infrastructure facilities for food processing along the value chain from farm to market with strong forward and backward linkages through a cluster based approach.

Common facilities and enabling infrastructure is created at Central Processing Centre and facilities for primary processing and storage is created near the farm in the form of Primary Processing Centers (PPCs) and Collection Centers (CCs).

Under the Scheme, Government of India provides financial assistance upto Rs. 50.00 Crore per Mega Food Park project.

The Mega food park at Palakkad is being set up in 78.68 acre of land at the cost of Rs. 119.02 crore. The facilities being created by the KINFRA at Central Processing Centre (CPC) of this Mega

Food Park include Pack house (Sorting grading packing) of 10 MT/hr, Warehouse of 12000 MT, Silos of 6000 MT, Multi Product Cold Storage of 5000 MT, Spices & Condiments Processing including Mechanical Dryer of 15 T/day, Ripening Chamber of 120 MT, Cashew Roasting of 2MT/ day and other food processing facilities.

In addition 4 PPCs at Ernakulam, Thrissur, Malappuram and Wayanad having facilities for primary processing and storage near the farms are also being set up.

The Mega Food Parkat Alappuzha is being set up in 68.18 acre of land at the cost of Rs. 129.15 crore. The facilities being created by the KSIDC at Central Processing Centre (CPC) of this Mega Food Park include Cold Storage of 3000 MT, Deep Freeze Unit of 3000 MT, Deboning and Canning Unit of 50 tonnes/day, Warehouse of 1000 MT and other food processing facilities. 5 PPCs at Thoppumpady, Vypeen, Munambam, Aroor and Neendakara having facilities for primary processing and storage near the farms are also being set up.

According to Badal each of the Mega Food Parks will influence an additional investment of about Rs. 250 crore in 25-30 food processing units in the park and generate a turnover of about Rs. 450-500 Crore annually. Each of the Parks will also provide direct and indirect employment to 5000 people and benefit about 25000 farmers in the CPC and PPC catchment areas.

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Vol. 10, Issue 02 - July- 2017

‘World Food India’ website launched by MOFPI

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nion Ministry of Food Processing Industries (MoFPI) marked the beginning of its global food processing event – World Food India with the launch of exclusive website for the upcoming event. World Food India - the largest gathering of investors, manufacturers, producers, food processors, policy makers, and organizations from the global food ecosystem.

World Food India is scheduled in New Delhi from 3rd to 5th November 2017. The Confederation of Indian Industry (CII) is the National event partner.

World Food India website www.worldfoodindia. in, is designed to provide quick and easy access to essential information to visitors, pertaining

4 mega food parks to be operational this year

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n the next 3 months four mega food parks will become operational.

According to Union Minister of State for Food Processing Industries, Sadhvi Niranjan, the government sanctioned 63 cold chain projects since 2014, and about received 300 proposals for setting up new cold chain projects have been received which shows that industry across India is taking interest in food processing sector as we have received many applications from northeastern states like Nagaland, Manipur and others.

The government is working at a rapid pace for development of food processing sector, the industry should impart training to the farmer to take utmost care of quality of produce.

Ministry of food processing has proposed to provide storage facilities for perishable products in the market itself like for wheat and rice, so that farmer can take it to the desired place later.

Mr D.K. Singh, chairman, APEDA (Agricultural and Processed Food Products Export Development Authority) said that his organisation is working on horticulture sector to increase export basket and is trying to export and promote mangoes in a big way.

When we think of a business plan in logistics development we must also think those aspects which are relevant in a particular market, said Mr Singh highlighting that feedback received from Korea on export of mangoes was not good, in terms of quality, packaging and other related issues.

Mr D.K. Singh also regretted the fact that logistics for cold chain for import items is better than for the export items as those products have to be brought and quickly distributed to the consumers.

That segment is well off and the industry is ready for a distribution network but not for exports and industry is not ready to work with farmers, said the APEDA chief.

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India to participate in ANUGA food industry exhibition in Germany

to World Food India. Visitors and interested corporates can register through the website for participation in event. In addition, World Food India website offers specifics such the exhibition details, event agenda, investment opportunities in food processing sector in India and so on.

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World Food India aims to provide opportunities for both investment and trade in the food processing sector for leading Indian and international companies. From production to consumption in the entire food spectrum, World Food India looks at creating a better sourcing environment, thereby enabling higher returns for farmers, creating employment, and fostering entrepreneurship.

ANUGA (General Food and Non-essential Provisions Exhibition) is the world's biggest and most important trade fair for food and beverage trade.

World Food India will provide a platform to highlight offerings and services along the food value chain which includes production, processing, packaging, technology, equipment, storage, logistics, or retail. One of the key attraction of the event would be the Food Street that would display food delicacies of various states of India and as well as international cuisine.

arsimrat Kaur Badal, Union Minister for Food Processing Industries has signed an agreement for participation in ANUGA - an international exhibition for food industry in Germany in October.

ANUGA will give India the chance to showcase its strengths and opportunities to an international audience.

The Minister is advocating for “Food diplomacy” that will bridge many differences and transform the lives of the farmers and more so development of food processing industries will help achieve the target of doubling farmers' income by 2022.

Time has come that the Indian food industry gear up to upgrade farming techniques and need

investment not only in food processing but also in farming technologies.

Badal said, that it is important to learn from the West on how to control waste at harvest and transportation stages..

In ANUGA 2017, e-commerce in food industry will be focused for the first time and more than 200 Indian companies are expected to participate in ANUGA 2017.

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Vol. 10, Issue 02 - July- 2017

BEVERAGES NEWS

Coca-Cola increases prices of aerated drinks, slashed kinley rates

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eft with no choice Coca-Cola India is going to increase the price of its aerated beverages while reducing that of packaged drinking water brand Kinley on account of upcoming GST regime. It is to minimally increase the prices even after absorbing the significant portion of the tax increase.

Coca-Cola will, however, launch an affordable range of aerated beverages to cater to the price sensitive consumers.

Aerated beverages have been hit the most hard with the proposed tax of 40 per cent under the GST significantly higher than current weighted average national tax incidence.

On its move to reduce price of packaged drinking

water, the company said it has advised its bottling partners to reduce price of its signature water brand ‘Kinley’ and will launch affordable ‘Value Water’ category priced significantly lower than the current portfolio of Kinley water.

Coca-Cola India said its overall pricing strategy under the GST regime will provide better value for money and range of choices to its consumers.

According to Coca-Cola India & South West Asia Business Unit President T Krishnakumar, GST is a landmark reform for creating a unified taxation system in the country. He added that the company will pass on the taxation benefits to the consumers and make all attempts to absorb the maximum impact of the escalation of tax in some categories of beverage portfolio.

Paper Boat introduced 1 litre tetra pak carton

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Managing Director, Tetra Pak South Asia Markets, Kandarp Singh said, “We are proud to partner with Paper Boat in meeting the specific needs of their consumers and are certain that this advanced

packaging format will help strengthen their brand appeal and offer differentiation in the market. The Tetra Prisma Aseptic 1 Litre pack with the resealable cap will give consumers a hassle-free and convenient consumption option for their favourite Paper Boat drinks. They can now stock their homes and be ready to share Paper Boat’s unique flavors with friends and family not just this summer but all year long.”

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egional brands are forcing the CocaCola to launch a new category it's calling Kinley Flavors. And hence aerated drinks, 35-40 per cent cheaper than Coke, Sprite and Fanta, will launched in popular localized flavours such as lemon, jeera and orange.

They range from Bovonto in Tamil Nadu to Alwarbased Jayanti Cola, to Gujarat's Hajoori & Sons, which sells Sosyo, Ginlim and Lemee.

A slew of smaller names include Xalta cola made by a Delhi-based company, City Cola by Rahul Beverages, and Campa Cola, a brand that never quite died out.

Kinley Flavors are made to target bottom segment of the market to compete with local brands; the

Gujarat Cooperative Milk Marketing Federation, that promotes Amul brand is the largest maker of ice cream and frozen desserts with a 17 per cent market share, followed by HUL with about 10 per cent. More refrigeration facilities will also enhance product availability in several categories, with ice cream and frozen desserts set to be amongst the fastest expanding in the next five years. Value will be enhanced by an upmarket shift in urban demand underpinned by rising consumer healthconsciousness and an increasing emphasis on convenience. As per Euromonitor International, this segment is anticipated to reach Rs 17,000 crore in sales by 2021.

of innovative products in the fruit-based categories within the next 5 years. The company has a similar product under the Perfect Fruit brand in Australia and is sold by Coca-Cola Amatil, where Krishnakumar had been a non-executive director.

Coca-Cola did not share other details stating that many innovations in the company are carried out in collaboration with bottling and business partners.

Vice-President, Public Affairs & Communications, Indian and South West Asia at Coca-Cola, Ishteyaque Amjad said, “We are committed to creating a ‘Virtuous Circular Economy’ for sustainable agriculture and provide a forward linkage to the Indian farmer. This can be broadly put under four major initiatives — adding juice to our sparkling portfolio, enhance local fruit variants within our existing juice portfolio, launch new range of products, and exporting Indian fruits to our global systems.”

Group President of Future Group, Devendra Chawla said most companies are shifting their portfolio towards healthier options as consumers have become more conscious and are also choosing nutrients instead of just taste. “As a category, desserts are fattening and sugary. But bringing a guilt-free indulgence could appeal to the young generation. The next decade belongs to fruit and not food processing.”

Coca-Cola contribute $ 1.7 billion to the Indian agriculture ecosystem

Coke to launch cheaper aerated drinks

Today’s market is flooded with regional aerated drinks accordingly to their geographical zone with their market price almost half that of the MNCs. They now have a consolidated share of over 12 per cent of the Rs 22,000-crore packaged aerated drinks category.

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oca-Cola shall introduce frozen desserts in India soon as the major beverage player intends to expand their portfolio beyond carbonated drinks into fruit-based and healthier choices. Company officials aware of the latest development said, “the new product will be available in the next three months, and initially sell in institutional formats such as movie theatres, and not as retail packs. The company will also put fruit chunks in Maaza and Minute Maid to make the drinks healthier.”

President of Coca-Cola India, T Krishnakumar announced it will invest Rs 11,000 crore in creating an agriculture-focused ecosystem, food processing units and sourcing that will help introduce a slew

aper Boat expanded their reach to customers with the launch of 1 litre Tetra Pak carton. These are priced at Rs 99, only Anar will be retailed at Rs 120 across the country at modern trade stores.

Co-Founder and CEO, Hector Beverages, Neeraj Kakkar said, “Our 250 ml doy pack has been critical in shaping our visual identity. It conveys a spirit, encourages playfulness, and has been successful in getting our customers to come engage with our packs at the store. So when we decided to explore the multi-serve format, the brief wrote itself. Again, we wanted to work with a distinct, memorable form. And we found the answer in the Tetra Prisma Aseptic. Manufactured especially in Sri Lanka, we have finally launched our 1 litre pack with a lot of help and guidance from the entire team at Tetra Pak. We’re very excited for the times ahead!”

Frozen desserts by Coca-Cola, to enter Indian market soon

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oca-Cola is going to contribute, along with its partners, over USD 1.7 billion (Rs 10,943 crore) in next five years to the Indian agriculture ecosystem. The contribution will be from the giant itself, its bottling partners, fruit suppliers and processors, the amount will be for the entire supply chain from "grove to glass through a concept called 'Fruit Circular Economy.

About $800 million (Rs 5,150 crore) of this contribution would be for obtaining of processed fruit pulp and fruit concentrate for the Coca-Cola Company's ever increasing portfolio of juice and juice drinks and carbonated drinks with juice products in India.

Through this initiative company's bottling arm Hindustan Coca-Cola Beverages, 13 other independent franchise bottlers and fruit processing companies will invest around $900 million

(Rs5,793 crore) over the next 5 years.

Coca Cola will also be working on a transitional journey focused on creating sustainable agriculture by using a variety of Indian fruits in its beverages under juice and aerated drinks categories.

The investments would be on manufacturing lines, juice bottling infrastructure and fruit processing plants and equipment and agriculture interventions to support demand and grow range of the company's non-carbonated drinks portfolio.

The investments announced by Coca- Cola will further catalyse economic growth and create new opportunities for farmers and local suppliers."

An estimated 2 lakh farmers will benefit from its five year roadmap of sourcing fruit pulp and fruit concentrate derived out of 2.10 million tonnes of fruit.

N Chandrasekaran named as TGBL Chairman

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beverages will be among the cheapest for CocaCola across markets. It will be available in 250ml PET packs at attractive price points and at the beginning global soft drink brands in 200 ml glass bottles are priced at Rs 12, while 250 ml cans are priced at Rs 25.

Localization and regionalization will trump globalization, especially when it comes to taste. It has been happening and now it is accelerating and there are increasing examples of global brands not only acknowledging but also attacking the smaller brands.

ata Global Beverages Ltd with immediate effect has appointed Tata Sons head N Chandrasekaran as Chairman .TGBL is the latest group firm of the over $100-billion salt-tosoftware conglomerate to appoint Chandrasekaran as Chairman following the likes of Tata Steel, Tata Motors, Tata Power, Indian Hotels and Tata Consultancy Services.

Chandrasekaran took over as Chairman of Tata Sons, the holding company of over 100 group firms in February, following Cyrus Mistry last year.

Chandrasekaran showed confidence over the

future of TGBL, saying it is a strong player in FMCG segment with major brands such as Tetley and Tata Tea and that the company had built deep capabilities in this space and is well poised to address many significant consumer trends and opportunities over the years ahead.

TGBL's total consolidated income for the fiscal year 2016-17 stood at Rs 6,862.65 crore. It has tea brand as Tata Tea, Tetley, Good Earth Teas, Vitax, teapigs and JEMCA. And it the second largest tea company, with significant brand presence in ove40 countries across Asia, Europe, North America, Middle East, Africa and Australia.

In coffee segment, it has brands such as Eight O’clock, Grand, map. The Tata group firm also operates a coffee chain with Starbuck in India in 50:50 joint venture.

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Vol. 10, Issue 02 - July- 2017

NEWS

Conveyor Belts are the heart of a conveying system

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ltraplast Chainbelts Private Limited are certified manufacturers and exporters of a wide range of parts, components & accessories of industrial conveyor systems.

Shashank Sharma The product portfolio CEO,Ultraplast Chainbelts Pvt. Ltd. includes conveyor systems, belt conveyor systems, automated conveyor systems, roller conveyor systems, plastic modular belts, stainless steel slat chains, thermoplastic slat chains, UHMWPE Wearstrips & corner tades, drive sprockets & idlers, side brackets & clamps and connecting clamps & handles & hinges. To meet the diverse requirements of clients, they even offer customization of products that fulfil clients’ requirement.

Shashank Sharma has extensive experience of 15 years as an engineer in conveying & packaging line. With his support and guidance, Ultraplast Chainbelts serves some of reputed companies such Coca Cola, Pepsi, Sab Miller, and Dabur; across India, Africa, South Asia, and Middle East countries.

due to easy control of operating parameters and a very short changeover time due to automation.

Q.2) Describe the significant role that conveyor belts plays in the automated machinery used with regards to food industry?

Conveyor Belts are the heart of a conveying system. There are a wide variety of belts available to suit the production process requirements. From minus 40 deg C for an IQF application to 200 deg C application in a Shrink Tunnel, there are belts suited for all environments, operating conditions, and applications. Special Purpose conveyor belts are critical for delicate product transfers to mass conveying of products. They are the most economical and efficient way of transporting various kind of products from one place to another.

Q.3) Elaborate on product profile of your company. Kindly also share the latest innovations?

ULTRAPLAST started in 1999 with a very a humble beginning but with a fierce determination to improve matters, especially in the conveyor belt field. We are pioneers of the Plastic Modular Belts in India and have the largest range among

Indian manufacturers. Our products are used by a wide range of Industries from food processing, beverages and bottling, dry fruits, snack food industry, to tyres and tubes manufacturing, bearings manufacturing as well as general conveying of innumerable products. We are developing innovative designs and features constantly based on our customers feedback.

We are also developing a new high temperature Polymer Belt for applications between 150 and 250 deg C. Q.4) In comparison between Indian and international conveyor belt systems, where does India stand? Has India matched the levels of international standards in terms of quality & hygiene?

India has a long way to go, as the demand for high quality products is still to mature.

Most of small Indian conveyor manufacturers are not technically aware of the importance of proper conveyor belt selection and therefore fall into the low cost, cheap quality product trap. However, the future is very bright as demand is steadily growing and with conveying and automation coming up

heavily we foresee a huge demand for medium quality and top-quality conveyor belts in India.

With increased awareness, we hope to catch up with the international standards of quality and hygiene very quickly.

Q. 5) What are your prospective plans for next 5 years? What's the investment for these plans?

We will be entering the specialized conveyor belts segment. These are dedicated belts developed specially for a process in specific industries. The next challenge is to make our belts perform under very high speeds over 100 mtr per minute with a consistent performance.

We also are developing new designs of belts which did not exist before for special purpose applications like handling candies and soft cookies.

Q.6) What advice you would give to the young generation who aspire to become a leader like you?

Intelligent hardwork is the key. Keep updating your knowledge and work tirelessly.

Q.1) What are the latest trends in automation for the food & processing industry?

The modern machinery is a very technically advanced piece of equipment. Automation plays a very important role in synchronisation of the various processes being executed by any equipment. This leads to increased productivity, reduction in man hour losses as well as material wastages.

We can get more consistent product quality and produce various products in the same equipment

Maharashtra has tremendous potential in dairy sector

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nion Agriculture Minister Radha Mohan Singh said Maharashtra throws a tremendous potential for the dairy sector.

Singh was present at the inauguration ceremony of Nagpur Dairy Plant and a Mother Dairy milk booth in Nagpur.

“There is a tremendous potential for working on the development of dairy in Maharashtra. In Nagpur, Vidarbha and Marathwada, the dairy profession can be a major source of livelihood for rural households.”

Singh said that according to the data of May 28, 2017, the total production of milk in 2015-16 reached 156 million tonnes, which is an increase of 6.28 per cent annually.

“Milk production during 2014-17 has increased by 16.9 per cent as compared to the year 201114. Per capita availability of milk in India is 337 gram/day while world average is only 299 gram/ day.” He added, Maharashtra’s milk production increased from 9.54 million tonnes in 2014-15 to 10.1 million tonnes in the year 2015-16 with a growth rate of 6.4 per cent, which is more than country’s growth rate, but per capita availability of milk has been 239 gram/day in 2015-16 which is substantially lower than national average.

On this occasion, Road Transport & Highways and Shipping Minister Nitin Gadkari and Maharashtra Chief Minister Devendra Fadnavis were also present.

In a separate statement, Mother Dairy said it will invest around Rs 65 crore to upgrade the Nagpur plant and setting up of milk procurement network in the regions of Marathwada and Vidarbha.

A part of the investment would also be made towards development of sales network across the city with 100 milk booths at key spots. “The milk procurement set up in the initial 3 years will cover around 3,000 villages across 11 districts covering about 60,000 farmers," it added.

IMCD India Private Ltd.Mob: +91 - 9167836974, Email: nitin.moily@imcd.in

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Vol. 10, Issue 02 - July- 2017

AGRO NEWS

MP asks Centre to procure more pulses, cereals to help farmers

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fter farmers’ unrest in Madhya Pradesh, the state government asked the Centre to raise procurement of pulses, coarse cereals and onions as market prices have fallen below MSP on bumper crop production. Madhya Pradesh Chief Minister Shivraj Singh Chouhan met Food Minister Ram Vilas Paswan and Agriculture Minister Radha Mohan Singh in Delhi to discuss the issue. He emphasized on the need to buy pulses, onion and coarse cereals before the rainy season and assured farmers that their crops will be bought by the Centre and state government.

Paswan assured that the centre will provide all support to the state government. The western Madhya Pradesh recently witnessed a major farmers’ agitation for loan waiver and remunerative prices. The protest intensified after the death of five persons in police firing in Mandsaur district on June 6.

“In MP, there is a bumper crop production. The growth of agriculture sector is more than 20 per cent. There has been a bumper production in the state Whether fruits and vegetables or food grains.

This is a reason for happiness for us. But at the same time prices have fallen due to bumper harvest which is a problem for farmers,” Chouhan said.

The CM has requested Union food minister to buy pulses through the Food Corporation of India (FCI)

in the state at MSP so that procurement of all crops arriving in the mandis could be procured before rainy season. He also demanded that the Centre should buy coarse cereals at MSP. Responding to these demands, Paswan said “MP is a state which is producing bumper crop. The state government faces problem because of this as sometimes prices goes below MSP. I have discussed this issue with Agriculture Minister. We are taking steps and will take more to solve this problem.”

The state government is also procuring onion and pulses and has already procured 3.2 lakh tonnes of onion out of 32 lakh tonnes production. The Chief Minister complemented the Centre for Aadhaarseeding of ration cards to eliminate bogus cards.

However, he demanded that distribution of foodgrains should be permitted in some genuine cases where there is a problem in verification of beneficiary because of poor internet connectivity or biometrics.

Chouhan said. Madhya Pradesh produces about 26-28 lakh tonnes onions annually. It is the second largest producer after Maharashtra. Wholesale prices of onion have fallen sharply below Rs 6 per kg in the state as the crop production during late kharif season of the 2016-17 crop year (July-June) was higher.

Jain Farms will take up mango planting to TN and Karnataka

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ain Farm Fresh Foods Ltd (JFFFL), a wholly owned subsidiary of Jain Irrigation Systems is aiming to make mango farming sweet for over 3 lakh farmers in Southern India by 2027. JFFFL began the exercise by inviting around 600 mango farmers from across the state to its facility at Elayamuthur near Udumalpet. JFFFL officials explained the salient features of Ultra High Density Plantation method in mango and tissue culture for banana and pomegranate.

“To ensure that the technology is available at the farmers’ doorstep, JFFFL has decided to ply custom-built mobile classrooms in buses. These buses will move and reach farmers even in remote areas, impart hands-on training in grafting, pruning and top working, sensitise them with videos and power point presentations on mango cultivation techniques.”

International Finance Corporation, the financing arm of the World Bank Group, would facilitate the training services under the Unnati programme in all the three states, Deshpande said.

“The UHDP technique enables planting of 600 trees an acre as against 40 to 70 trees/ acre under the conventional method and the canopy maintained in such a way as to get maximum light interception.

They demonstrated drip and sprinkler irrigation systems and shown the farmers mango nursery, particularly the UHDP mango farm said to be the oldest in India.

Managing Director of JFFFL, Sunil Deshpande, said the company is focused on improving farmers’ economic empowerment through adoption of Good Agricultural Practice (GAP) and extension of Project Unnati.

“Project Unnati is a sustainable agriculture initiative, introduced initially in Andhra Pradesh in 2011. Over 22,000 farmers have been successfully trained in AP in the pilot phase of this project. We are extending it to the farmers in Tamil Nadu and Karnataka. This programme is in association with FMCG major Hindustan Coca-Cola Beverages.”

He also added that mango farmers in these two southern states will be trained in advanced cultivation practices aimed at doubling their farm income, besides ensuring earliness in farm income.

The gestation period is also less.

The orchards start commercial bearing from the 3rd or 4th year onwards against 7 to 9 years under traditional planting.”

Further Deshpande elaborated, “utilising drip offers twin benefits — improving yield per acre and decreasing use of water simultaneously for every kilogram of mango produced. Special care for nutrition management and pest control is also undertaken in the project. UHDP is a viable solution in all areas where mango is grown traditionally.”

K Ramasamy, Vice Chancellor, Tamil Nadu Agricultral University commenced the Unnati training buses at the Jain Agri-Industrial Park in Elayamuthur. Umesh Malik, Vice President PAC, Hindustan Coca-Cola Beverages, said the company is one of the largest buyers of Indian agricultural produce. “Our investments and interventions in sustainable agriculture will provide a boost to the local suppliers and the agriculture sector in India.”

‘Maharashtra shall frame agri-processing policy to link agriculture to industry’

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fter announcement of loan waiver for small farmers in Maharashtra in the wake of protest by cultivators, Chief Minister Devendra Fadnavis emphasised on the need to link agriculture to industry with a view that farmers remain debt-free in future. He said the government is framing an agro-processing policy to bring investment in the sector and provide a fair value for agri produce.

With spiralling protests in state by farmers for a complete farm debt write-off and guaranteed minimum support price (MSP) for their produce, Fadnavis announced a loan waiver for small and marginal farmers. “Since the past 15-20 years, farmers have been complaining that farming is no longer affordable. So, we feel food processing is the best solution, and we are already working on framing the policy.”

The proposed policy would enable farmers to process their perishable produce like vegetables and fruits on a large scale. “We will be creating decentralised units, cold chains, warehousing and

promote creation of farmer producer organisations (FPOs). This will bring in private investment and in-turn help the farmers get the best price for their produce. It is important to link agriculture with the industry to ensure farmers remain debt-free in future,” the chief minister said.

He said though the government has announced the loan waiver for farmers, especially from regions like Vidarbha, Marathwada, north Maharashtra and drought-affected areas, it is necessary to ensure they don’t become debt-laden again. “We have seen in 2008, when the loans were waived, that these farmers again accumulated debt. Therefore, we need to come up with such a model such that after their loans are waived, they can, through food processing, become self-sufficient. We need to create a sustainable model for them, otherwise waiving off the loan will be of no use.”

The government is working towards providing solar feeders for farmers to ensure 12-hour power supply for agro-pumps across the state.

Food deficit Jammu & Kashmir indicates progress in farm output level

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nion Agriculture Minister Radha Mohan Singh said Jammu and Kashmir, a food deficit state is making remarkable progress in the production of some of the important crops like paddy, maize and vegetables. The hilly state imports nearly 7 lakh tonnes of foodgrains annually. The lower farm production is mainly due to mono-cropping system, fragmented land holdings as also geographical and climatic conditions.

Addressing a farming community in the state capital, the minister said “In order to bridge the gap between the production of foodgrains and consumption, the state is striving to increase production level of various crops including food crops.” The state is implementing the centrally sponsored agri- schemes to boost the farm output.

The latest data shows that Jammu and Kashmir has achieved remarkable success in enhancing

the production level of some important crops like paddy, maize, vegetables and saffron.

On setting up of a saffron park in Pulwama district of south Kashmir, the minister said the 24.45 crore park is likely to be operational by November 2017. The National Horticulture Board is entrusted with the task of establishing the park in Pampore, Pulwama, which will have facilities of quality control lab, export promotion activity and e-auction centre, Singh added. He even noted that India can become one of the world's major economic powers by developing agro-processing industry.

The government has launched new schemes including distribution of soil health card, expansion in irrigation facilities, low-cost organic farming, national e-market among others.

Agro-Marine processing scheme SAMPADA launched by Modi

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rime Minister Narendra Modi launched agromarine processing scheme SAMPADA to promote food processing and create job opportunities for the youth.

direct investment. At the completion of three years of the NDA government, I have decided to make this announcement for the agriculture sector as there are much possibilities, particularly for the youth of the country.” PM Modi also highlighted that finished products like juice and pickles add more value to raw materials produced by farmers and at the same time create employment and export opportunities.

“There are immense possibilities for agro product valuation and the Rs 6,000 crore SAMPADA (Scheme for Agro- Marine Processing and Development of Agro-Processing) will go a long way in developing food processing industry and creating employment opportunities for the youth," he said after the foundation stone ceremony of the Indian Agriculture Research Institute in Dhemaji district.

Urging the youth of the North-East to take advantage of the scheme, he said “The North-East will be the new engine for a new India and the term NE will mean new economy, new energy and new empowerment.”

Modi said, “initially there will be an investment of Rs 6,000 crore and later we will go in for publicprivate partnership which will include foreign

He spoke of new possibilities of not only connecting the North-East with the rest of the country but to ensure it emerges as a hub of new economy. This will be achieved by following the panch path (five paths), with focus on infrastructure development such as highways, railways, waterways, airways, and I(information)-way.

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Vol. 10, Issue 02 - July- 2017

12

Vol. 10, Issue 02 - July- 2017

FOOD SAFETY NEWS

Food regulator issues draft regulations for organic food products

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he Food Safety and Standards Authority of India (FSSAI) has come out with a draft regulation for organic food products, seeking to ensure that these food items are actually organic. Organic foods will have to comply with the provisions under the National Programme for Organic Production (NPOP) administered by the government or the Participatory Guarantee System for India (PGS-India) run by the Agriculture Ministry or any other standards notified by the food authority. The food regulator has sought public comments of the draft regulations has been prepared in view of rising demand for organic food products being considered as healthy in the country.

FSSAI said organic food products are either that grown under a system of agriculture without the use of chemical fertilisers and pesticides or made from organically produced raw materials. Currently, a number of food products are being marketed as organic. The regulator said that consumers do not have any way to check the authenticity of organic food products due to lack of a regulatory framework. “The draft regulation on organic food is aimed at overcoming this problem and ensuring

that what is sold as organic food is really organic.”

The draft regulation mandates that labeling of organic foods should convey full and accurate information on the organic status of the product.

Organic food products should also carry a certification mark or a quality assurance mark given by any of the notified certification bodies.

The FSSAIs draft has exempted organic food marketed through direct sale by the original producer or producer organisation to the end consumer from verification compliance. However, this exemption does not apply to processed organic products. FSSAI has defined organic agriculture as a system of farm design and management to create an eco system of agriculture production without the use of synthetic external inputs such as chemicals, fertilisers, pesticides and synthetic hormones or genetically modified organisms.

Organic farm produce means the produce obtained from organic agriculture, while organic food means food products that have been produced in accordance with specified standards for organic production, as per the draft.

FSSAI to address concerns upraised by the industry on new standards on health supplements

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he Food Safety and Standards Authority of India (FSSAI) is going to address concerns upraised by the industry on new standards for eight categories of products, including health supplements and nutraceuticals. These standards will come into force for compliance from January 1 2018, Pawan Agarwal, Chief Executive Officer of FSSAI, stated that the standards of nutraceuticals were released by the food regulator a few months ago after very prolonged deliberations by the scientific panel, scientific committee and then the authority.

There are associated standards and regulations, and the key amongst them being labelling regulations, claim regulations for which again the draft will soon be available on FSSAI website.

These are also quite contentious issues considering that consumers' interest for any regulator is primary and is non-negotiable. So any food supplement manufacturer giving any kinds of claims has to be extra cautious and as a regulator we have to ensure that those claims are substantiated with evidence.

The challenge with the food supplements is that there is no robust framework for testing of food

supplements products. There are also issues about good manufacturing practices around food supplements and nutraceuticals sectors.

FSSAI had set up a technical panel with representatives from food supplement companies to put together the framework for goods manufacturing practices (GMPs) for nutraceuticals and food supplements.

FSSAI intends to provide them a level-playing field. But considering the 'Make in India' campaign of the government, their focus is on promoting much of processing and manufacturing within India.

For the sake of Food Industry, it is imperative for both the industry and government to work together to provide a more robust framework for growth of food supplement and nutraceuticals sector in India.

Also there is an immediate need to make the food supplements and nutraceuticals affordable as about 43 per cent children across India remain malnourished while the sector mainly caters to the middle and upper-middle class consumers.

FSSAI favours extension of ban on milk imports from China

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he Food Safety and Standards Authority of India (FSSAI) recommended extending the ban on import of milk and milk products from China for another year up to June 23, 2018.

This suggestion includes products containing milk and milk solids as ingredients such as chocolates and confectionery products.

An advisory from FSSAI declared that “Ban on import of milk and milk products including chocolates and chocolate products and candies/ confectionery/food preparations with milk and milk solids as ingredients from China may be extended for a period of one year up to June 31, 2018 or until their safety is established on the basis of credible reports and supporting data, whichever is earlier.”

The food regulator made this recommendation after

a review of the ban was conducted in consultation with other ministries and government departments on June 12. The Directorate General of Foreign Trade had first imposed this ban for three months in September 2008. That was further extended for another six months up to June 23, 2009, and included ban on import of chocolates and chocolate products and candies, confectioneries and food preparation which contains milk and milk solids as an ingredient.

Since then, the ban has been extended several times, with the last being up to June 23, 2017.

Ever since 2008, there have been global concerns regarding the safety of Chinese milk after presence of toxic industrial chemical- melamine which is used to make plastics and fertilisers.

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Food regulator promotes fortified food

he Food Safety and Standards Authority of India (FSSAI) said it was promoting fortification of micro-nutrients in staples to fight malnutrition. FSSAI of CEO Pawan Kumar Agarwal said at an interactive session with Bharat Chamber of Commerce on food safety. “We are trying to encourage brands to fortify their products.

We are targeting five staple foods including rice, wheat, milk and edible oil for fortification.”

There is no plan currently to make fortified staple food mandatory but government will keep a close watch. “If found voluntary acceptance is low then government may take step to make it mandatory,” he said.

India ranks poor in global standards in nutrition index and thus FSSAI was trying to promote fortified food. Agarwal said several brands will soon come out with fortified atta including from brands like Ashirwad, Patanjali and Pillsbury.

“We are also holding dialogues with some 10-20 millers for fortifying atta”.

Meanwhile, FSSAI is trying to work out with the state government to encourage tea garden companies to supply fortified food to its workers.

“We are holding discussions with stakeholders to see how fortified food can be supplied to tea garden workers can be worked out," Agarwal added.

FSSAI takes initiative on food borne illnesses and spoilage by micro–organisms

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oods Safety and Standards Authority of India (FSSAI) collaborated with the industry to promote science based food safety measures to address food borne illnesses and spoilage by micro–organisms. a public lecture on the subject by well-known food microbiologist and co-founder of the largest online food microbiology database (ComBase), Prof Mark Tamplin (University of Tasmania) was organized to address the twin problems. A Bakery Training module, as part of the training package for Micro, Small and Medium Food Business Operators was also launched aimed to assist FBOs in the bakery sector to develop and implement their Food Safety Plan. Last year, FSSAI had signed a MOU with CHIFSS, a partnership initiative on food safety sciences between the Confederation of Indian Industry (CII) and Hindustan Unilever (HUL) to promote science based food safety.

Prof Tamplin, the speaker on the subject “Predictive Models and Sensors in food supply chain to enhance food safety” emphasized on the importance of understanding and characterizing the relationship between food and microorganisms for building data on the prevalence and behaviour of pathogens and spoilage organisms in foods. “This would not only help in predicting the shelf life of products, but also in developing safer

food formulations.”

Drawing a linkage between agriculture and safe food processing, Ashish Bahuguna, Chairperson, FSSAI stressed on the importance of understanding and learning the best international practices. Such knowledge building efforts would not only ensure safer food for domestic consumption, but will also boost exports. He said the idea is to work towards improving food safety through facts & data based technical approaches, food safety plan guidance documents and on-line training programs.

Geetu Verma, Executive Director – Foods, HUL, in her opening remarks called to attention the need for building food safety capability in India and reiterated HUL’s commitment to CHIFSS. “Food safety is a huge challenge in a country like India and thus government alone cannot be held responsible for it, all stakeholders should come together to address the issue”, she said.

Food regulator wants edible oil vending machines

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ndia’s food regulator, Food Safety and Standards Authority of India (FSSAI) has asked manufacturers to set-up automated vending machines to sell good quality edible oil in small pouches. In the absence of such an option, people who cannot afford to buy large packs, are compelled to purchase loose quantities of edible oil that is often adulterated.

“An innovative idea to provide edible oil at nominal prices to consumers is its sale through automated tamper-proof vending machines. To provide quality edible oil to small consumers and reduce the unauthorised sale of loose oil, it has been decided to allow the sale of edible oil through automated tamper-proof vending machines,”

FSSAI said in an order issued.

The proposal was debated extensively within the government and with the industry before the FSSAI came out with the order. “Edible oil is still not widely available in small packages like sachets and pouches at prices which are affordable to a large section of consumers, who resort to purchasing loose edible oil which is of suspect quality,” said the FSSAI order.

Food regulator made it clear to the industry that such pouches and sachets must be tamperproof and should follow the FSSAI standards on packaging and labelling. Recent consumer survey highlighted the inferior quality of loose edible oils being sold in the rural and semi-urban localities.

To test food adulteration Uttar Pradesh to use more labs of premier institutions

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he Uttar Pradesh government will use laboratories of IIT-Kanpur, BHU, Institute of Engineering and Technology, Allahabad, and others for testing of samples of eatables. This because of the state government has only six laboratories to test 20,000 food samples each year, which leads to delay in reports.

Of course with the help of these premier institutes,

the reports would be quickly accessed. This is because till now up to one year has been taken in some cases to get the report. This is a health hazard and it should end immediately. With the help of the laboratories of these renowned institutions, the reports would be accessed within 24 hours and action against such elements could be taken in a fast and effective way.

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Vol. 10, Issue 02 - July- 2017

SUCCESS STORY

The Technofour

story-Unprecedented global achiever Whenever we used to participate in International exhibitions, people used to remark on our finishing and astatic. Technofour acknowledged that though our parameters were up to the mark technically but we needed to work on our systems superficially.

We took this as a challenge and worked out on the modes of fabrication, the ease of fabrication, so that the welding and joints were not visible. On the finishing part we worked on every minute detail so that our detectors, weighers of dedusters were no less than any global competitors.

Now, the systems of TEPL are based on the latest techniques and offer world class quality and fulfillall thenorms required internationally.In fact systems manufactured by Technofour are based on the latest State of Art Technique, offering the latest features - which are at par with the global market today.

There is now a stringent food safety guideline both in the food and Pharma industry, so how competitive and technically advanced your machines are?

If technically you mean sensibility wise, feature wise, functioning wise or look wise, we measure up to it. Whatever requirement that are required by the food regulators and the industry’s practical vibration controls are completely fulfilled by us.

In fact all the functions and technology of our equipment’s are at par with all the Europeans and US systems that are present in market.Technofour hence is fulfilling all the global guidelines.

F

orty-five years ago, four young brains came together with one daunting mission: to design and build a whole range of world class sophisticated Eddy Current non-destructive test systems.

Today the Technofour group takes pride in their products. Apart from possibly the best Eddy Current NDT systems in the world, the group has three other major lines of business: Highly sophisticated metal detectors for pharmaceutical, cosmetic, food and other industries; Checkweighers systems and mechanical handling systems and robotics.

Technofour have now diversified into Ultrasonic Flaw Detectors as well as Barkhausen Emission Analyzers. Technofour take pride in introducing the World's smallest credit card sized Eddy Current instrument - the EddyUSB, Ultrasonic flaw detector UTUSB and the World's first Bluetooth enabled instrument, the EddyBLU. The Metal Detectors are widely used for detecting the external metal contamination in the finished product. The metal contamination may be sourced from raw material, during process, maintenance work, human error, etc.

The company also introduced Pin Hole Detector and Dedusters system decade ago, especially for the Pharmaceutical segment. These systems are also indigenous and based on the world class techniques. All the systems manufactured by Technofour are based on the latest State of Art Technique, offering the latest features which are at par with the global market.

In a candid conversation with Suresh Subramanium, General Manager, Technofour group, we got to know about the company’s plan for expansion and development. Also the visionary shared with us the company’s marketing trends and practice.

Excerpts from the interview: Can you brief us about your company, its state of art facility, production capacity and area of the capacity?

Technofour is situated at the outskirts of Pune city, Maharashtra, India, spread in about 7 acres of land with Excellent manufacturing facility. Here we have constructed about four sheds, where we manufacturing metal detectors, check- weighers, dedusters and certain dedicated handling systems.

We manufactures about 70 to 80 metal detectors per month, 30 to 35 check weighers per month and about 30 dedusters per month Apart from this we manufacture about 30 handling systems in a month.

But the demand of our product has been increasing drastically and to meet it we are going to double the production capacity within a couple of month. The demand is actually surpassing the manufacture.

Indian food processing industry is growing day by day, and with it the need for advance technology in food safety has become need of the hour, how is Technofour working towards meeting the demand?

In Indian food industry, earlier food safety was not such a big issue and neither was the use of the metal detector. These issues were only prominent in the multinational companies who were very dedicated with their principles.

But now thanks to the FSSAI, consumer forums,consumer awareness and development of technology, the Indian manufacturers – both big and small- are becoming sentient. Like now, even small manufacturers thinks of incorporating metal detectors in his machineries before staring manufacturing, so that he fulfills the audit requirements.

Your machinery has drastically changed with time, so as compared to the international standards how apt are your machineries now?

So your machineries are globally traded now and your client includes best of the manufactures also?

Yes, we now sell our machineries to the best of the manufacturers in both food and Pharma industry. In fact our buyers include multinational companies who have always preferred imported equipment but now are buying our machinery.

Just recently in the exhibition in Germany, the InterPack exhibition one of the world's most important fairs of the packaging industry, we adhered that Europeans were very impressed with our equipment especially its quality, look and cost.

And now they are all set to buy our machines and we are all set to increase our export market.

Moreover, our machineries are offered with ease of operation and maintenance. The excellent after sales support arrangement across the globe is an added value for the customers globally.

TEFL was among the very few companies who were visible in InterPack exhibition in Germany

this year, what was experience in participating there and what kind of impact does this kind of exhibitionshold for the Indian machinery manufacturers?

Participating in InterPack was very enduring as it gave a good experience and great exposure. Apart from that you get to encounter people from all over the continents, thus at one spot you are able to cater the worldwide market.

I would say international exhibitions that are on the level of InterPack gives prodigious exposer to the upcoming manufactures around the world and I highly recommend that all Indian machinery manufacturers should participate in such fairs and exhibitions to enhance their marketing presence globally and to be competitive.

What are your expansion plans to meet the demand and what types of investment are you looking for?

As I said earlier, we are all set to double our manufacturing as soon as possible. As for the facility we have the infrastructure and space which can be used immediately for manufacturing, Other than that we have not thought ahead of that.

Technofour is not very exuberant where highlighting its achievement is concerned, in fact if analysed you stay away from the limelight. So how do you expand and develop your market presence?

Well from the sales part we are known to be a Technocrat Company, technically very strong but feeble in commercially marketing ourselves. But through word of mouth we have been able to cater our customers and get exceptional business.

Clients come to us with new requirements asking if we can develop certain machinery with a particular requirement and we do it with dedication and honesty. This very aspect of Technofour has given it all the publicity it needs to stand out in the market.

What type of R&D facility does your company haveand what is the strength of your manpower/ human resources does it have?

We have a total of 240 people working here out of which 70 per cent are engineers. Even the directors and managers are highly educated and competent in research and development. Technofour holds its expertise in their respective field with well qualified staff and dedicated team and we very proud that the systems manufactured by us are considered for better quality and performance in the country and globe.

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Vol. 10, Issue 02 - July- 2017

COVER STORY

Future

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

Keeping pace with rapidly www.agronfoodprocessing.com

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Vol. 10, Issue 02, July 2017,

20/-

ith the press of a button at midnight in Parliament’s Central Hall, India converted to GST, the single biggest tax reform undertaken by the country in 70 years of independence. It took 14 good years to implement this tax system that will put India on path that will be transparent simple and keep tabs on corruption. Well that is what Prime Minister Narendra Modi claimed.

Curbing corruption in India is a daunting job and I wonder if this assertion will go in the same way the return of black money went. Any way even the Industry body - ASSOCHAM has divulged that under GST the industry is expected to contribute $280 billion to India’s GDP in eight to nine years due to positive fallout of the Goods and Services Tax (GST) as structural changes in the ease of doing business will propel growth.

Though I am still confused with the way it has been applied in the food industry, nevertheless I do agree that the most visible benefits accruing immediately from GST would be the removal of the octroi at the check posts at the inter-state borders, the most irritating and efficiency killing phenomenon that should have gone long ago. Moreover after surpassing all hiccups eventually, GST will turn the MSMEs more competitive with a level playing field between large enterprises and them.

But is it all roses? I guess not, even after the roll out of GST the industry is confused, especially the food industry, that is still muddled and wondering. The restaurants and eateries are suffering from low turnout due enhanced bill panic and on the top under the GST regime, non-airconditioned restaurants would attract 12 per cent tax, while AC restaurants and those serving liquor will attract 18 per cent.

Restaurants, hotels and eateries should cut rates on food items in their menu to reflect the benefit of being able to set off tax paid on inputs under GST. As for now GST will be levied on entire sum of food bill, including service charge, in a restaurant, while the value of alcohol or alcohol products consumed will attract VAT. But that’s not the only case; the entire the food industry has been subjected to different tax rates, which is rather ironic given that the main purpose of the reform was to simplify sales tax, which was till now a patchwork of national, state and municipal charges. Rather than food being subjected to one or two rates – which is standard practice in most developed markets – the Indian system has food products covered by zero, 5%, 12%, 18% and 28% tax rates. To some extent, the logic behind the decision has been to lower GST for basic items bought by poor consumers but there are additional complexities throwing up some potentially market disrupting anomalies.

India's government is making a conscious mistake by delegating lower rates or nil rates for basic foods, while charging higher rates for processed foods. I wonder why the govt has not understood that far from helping poorer consumers this step will detriment them.

In fact it was highly expected that the government would have encouraged food processing as it adds value, which helps farmers, instead of taxing these products at a higher bracket of 18%. Biscuits industry is baffled, biscuits under Rs 100 Kg are taxed at 18% and this might push price-sensitive consumers towards unbranded products. While aerated drinks are to be taxed with compensation cess rate at 12 % and as they are in the category of demerit goods or sin goods and luxury goods, they come under the highest GST slab of 28 per cent. It means, aerated beverages will attract a total tax of 40 per cent (28+12).

Certain goods such as cottage cheese or paneer, natural honey, wheat, rice, other cereals, pulses, flour of cereals and pulses, other than those put up in unit container and bearing a registered brand name, attract zero GST. But when these are put up in unit container and bearing a registered brand name, they attract 5% GST. Some companies have used this distinction to circumvent the norm to remain in the tax-exempt bracket. A big rice exporter, for example, has sent out a notice to its distributors that its brand of premium packaged rice was eligible to enjoy tax exemption under the GST. The reason behind such claim was that the company’s application for trademark was still pending and it is not registered. The company has also applied for cancellation of another of its trademark registered brand. Other companies, too, have begun approaching trademark office for cancellation of already granted trademarks to circumvent the norm and join the tax exempt bracket.

The point is while the basic food is under smallest or nil tax, their processed and packaged form attract higher tax slab. Loop holes are there, blunder has occurred and the govt is realizing it. This happened after some established brands took refuge in the norms to claim exemption under the goods and services tax (GST) and now to eradicate this tax rules for edibles commodities are going to be reviewed.

If the GST counsel had worked on rationalizing and harmonizing tax and food safety classifications there would have been a better crafted GST without so many variations in its rates. A lot of confusion in the minds of the stakeholders could have been resolved. Without it, companies may start to finesse their packaging and formulations to ease their products into lower GST brackets.

Many news and events were left out while discussing GST, but it was very important for me to share my perception on this new tax regime with my readers; of course I would like to have a feedback on your thought and experience on it and about it.

Will discuss with you about the McDonald fall out, the launch of cheaper drinks by coca cola, the ice cream fight and many more next time…..till then it a short break.

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n recent decades, companies in sectors from automotive and high tech to retail and consumer packaged goods have come to realize that their supply chain is much more than the cost of getting products into customers’ hands. These companies understand that it is the supply chain that translates corporate strategy into day-to-day interactions both within and beyond the organization.

Ultimately, it is the supply chain that satisfies or disappoints their customers. These companies also use a broader definition of the supply chain—one that includes planning, information sharing, and value-adding activities, from raw material to final distribution, rather than just logistics.

Leading companies have made strategic investments in their supply-chain capabilities and set up efficient and effective organizations that overcome cross-functional silos. By outperforming the overall level of maturity in their sectors, they have been able to disrupt them, as Amazon has done in retail, for example. These companies have redefined their customers’ expectations of service and their ability to bring innovation to the market, turning their excellence in supply-chain execution into a powerful source of competitive advantage.

Critically, the very best companies continue to evolve and reinvent their supply chains, even if they have already achieved a leading position in their industry. By doing so, they are able to manage risks; respond to changes in the economic, technological, and competitive environment; and exploit new opportunities more effectively than their competitors.

Globally times are changing and the companies need to enhance their supply chain to the best with upgraded technology, by reducing transporting time, and understanding the system.

Industry trends Driving Change When we look ahead, we see a number of trends that will shape the industry in the coming 10 years, which are largely outside the control of the industry. But retailers and consumer products companies must consider the impact of these external forces on their business and determine how best to respond to the changes that will be brought about as a result of their impact.

There will also be key industry trends that will affect the future value chain, particularly in the areas of consumer behaviour, information flow and product flow. In contrast to the external forces, the industry does have the power to shape how this change will take place, at least to some degree.

Consumer behaviour: driving the value chain Consumers and shoppers will continue to become more demanding and empowered. In fact, they will become active partners in the supply chain and will directly drive product development and replenishment. They will increasingly interact (including ordering and buying) via different channels (online, in-store, mobile), and will require other delivery mechanisms besides the

Beverages & Food Processing Times

stores, including, for example, neighbourhood distribution and home delivery.

Product flow: redesigning supply chains New industry challenges necessitate new supply chain solutions. Urban structures will require special attention. Current transportation and infrastructures are increasingly congested and hamper the required service levels. In addition, energy prices and government regulations (for example, relating to city distribution) will have a significant impact on transportation. The industry will need to rethink how products are distributed.

Information flow: managing complexity through transparency Supply chains in the future will be even more complex than they are today. Companies will need to determine how best to work together to effectively match supply with demand.

Open information sharing will be an important foundation to help companies anticipate dynamic consumer demands. Collaboration should focus on areas of common interest, without affecting the competitive positioning of companies.

Economic trends: new markets and a new economic balance Brazil, Russia, India, China, Africa and Korea will be major markets to consider in the coming years.

Each of these markets will evolve much more quickly, compared with the parallel changes that occurred in North America and Western Europe.

There will also be changes in the balance between local and global sourcing.

New technology trends: explosion of information Moore’s Law will continue to scale the effects of new technologies in ways never before seen. For example, RFID technologies will play a big role in the future. In addition, the adoption and use of new technologies by consumers and shoppers (in home, in stores, on-the-go) will grow rapidly.

Regulatory trends: new rules, new compliancy In addition to consumer pressure and companies’ own growing emphasis on corporate social responsibility, governments will enact more regulations, particularly targeting areas such as sustainability. This will be done by government and regulatory bodies at different levels: local, national and international. In addition, some current labour regulations must be repealed (for example, for more flexible working times) to allow infrastructures to be used to their full capacity with less stress on the environment.

Future trends of supply chain Today the industry faces issues that remain difficult to solve. For example, companies are still challenged to put full truckloads on the road.

Out-of-stocks continue to be a perennial problem.

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Vol. 10, Issue 02 - July- 2017

COVER STORY

of logistics

evolving global markets means reimagining supply chains entirely Results from a recent ECR Europe study on outof-stocks show that the loss of revenue for all grocery stores in France alone is estimated at €200 million per quarter. The Industry’s infrastructure remains complex. Energy costs continue to rise as the price of a barrel of oil increases. Urban distribution remains an issue, because the model is outdated: New infrastructures and new rules such as congestion charges will lead to major adjustments in managing f lows.

These issues have changed little in the past 10 years, yet real solutions have not been found and implemented. It’s clear that the current way of working is not sufficient and that the industry must take a new approach.

The problem with trends is that they are like a freight train gaining speed; everyone can see the train, but at what point do you say the train is really moving at speed? With that in mind, here are the trends I’m following, the predictions I am making, or if not a prediction, the inflection points I am paying attention to.

Large multinationals will be paying very close attention to the design of their supply chain networks to where their factories and warehouses are located and how they flow products to customers. Software suppliers that sell Supply Chain Design software or have expertise in using this software in consulting engagements will benefit.

Automation Reduces the Number of Employees Working in Logistics It does not take much imagination to know that at some point driverless vehicles will reduce the need for truck drivers and companies will continue to make investments in these kinds of vehicles. Just recently Apple confirmed what many suspected, that they in addition to Google, Amazon, and the big car companies, are also investing in this area.

E-commerce reshapes the Face of Logistics The last few years of holiday shopping, and the shipping crunch associated with e-commerce orders, has produced its share of ups and downs.

Late packages will never be eliminated fully, but retailers and shippers alike have taken steps to ensure that a holiday meltdown similar to 2013, where an estimated two million packages were delivered late, does not happen again in future.

And similar investments and detailed planning will also make 2017 a pretty good year for consumers that want to make sure their presents arrive on time for the holidays in 2017.

Digital Supply Chain The concept of the Digital Economy encompasses Internet of Things” (IoT) and also includes the idea that IoT sensor data needs to be leveraged in applications that take that sensor data turn it into actionable tasks that are embedded in the right process step that can be executed by the right person. IoT is nothing new in logistics. In the logistics space, for example, we’ve been taking RF scans and using that data to improve warehouse processes. Internet protocols make it easier to communicate that sensor data to applications. And the use of GPS in Internet-enabled fleet routing and tracking solutions has existed since the turn of the century.

Predictive analytics startups have also emerged doing interesting work with IoT data. ClearMetal is an example of a company applying simulation and advanced analytics to Big Data to help ocean carriers improve their profitability and a variety of solutions are using Big Data and advanced analytics to predict which truck drivers will have an accident. So what is the prediction? It is a fairly safe one. It will see big supply chain software companies purchasing these types of suppliers in 2017.

Autonomous Fleet Brings Greater Efficiency Drones are definitely the poster child at the moment and have stirred up a lot of conversation since Amazon announced its plans to launch drones for last-mile deliveries. While this is and will be an integral part of the future, it is also interesting to focus on the other types of fleets within the industry that could become completely autonomous. Before drones were experimented with, the first “vehicles” to become autonomous in the supply chain were actually forklifts. Man travel is among the most unproductive, time-consuming tasks within a warehouse; the new forklifts, called “vision-guided fully autonomous mobile robots,” not only address this specific issue, but also have the ability to process orders (pick and on-board for delivery) four times faster than a human.

There is a real possibility of fleets becoming totally autonomous as well. Truck platooning and autonomous trucks could be a reality by 2030.

Semi-autonomous trucks will reach a penetration rate of 5 per cent by 2030. Rolls Royce has announced plans to launch autonomous cargo ships (or as The Economist called it, “Ghost Ships”) by 2030. While replacing or aiding man was a critical criterion for autonomous technology in material handling, for fleets, the value of autonomy centers around fuel economy. Truck platooning, for example, could mean saving as much as 20 per cent on fuel costs.

While fuel is still the most overbearing influence on the assets and fleets of the industry, with all this autonomy and technology, a new influence is emerging that could have a far-reaching impact on the supply chain— Big Data, well not only Big Data, but “Good Data.”

Data Replaces Fuel as the Biggest Influencer With big data we are seeing the conversation shift from estimating the volume of data, or Big Data, to the variety and value of data. This is a useful conversation to have because an unbelievable 90 per cent of data sometimes captured is pure spam.

Amazon, for example, is building capabilities to cull out that spam and create predictive analytics around your shopping behavior.

Amazon wants to ship your products even before you know you want it. In its current model, Amazon receives an order and delivers the order through UPS or UPSS. It has been trying hard to compete with brick and mortar stores to provide instant gratification, the one thing it cannot provide right now. All of its efforts with drones and robots have been focused on cutting that delivery time and getting you what you want as soon as you want it. Last year, Amazon said it is working on drones that could make deliveries of small packages directly from warehouses to homes.

Its current patent on “anticipatory shipping” exemplifies a strategy where Amazon will send out deliveries to partial street addresses or zip codes to get the products as close as possible to the consumer and then in-transit complete the address and route it to someone who has placed the order. Anticipatory shipping is coming; Predictive models combined with new-age fleets could lead to zero fulfillment time.

Another interesting prospect this creates is the possibility of logistics becoming a data-centric industry where information takes precedence in logistics services’ value propositions over the

actual ability to move cargo.

New Breed of Technology Players is Less AssetCentric To say the logistics industry is becoming nonasset based or less-asset centric is a stretch because someone has to own and operate the assets; however, what is interesting to see is the rise of the new breed of logistics providers that own no asset (fleet or warehouses), but are able to provide logistics services by aggregating “information about assets” from people who do own them through leveraging data. For example, Shyp and Zipments are logistics companies that provide logistics-related services like offering freight quotes or trucking capacity, but neither own assets and are therefore able to offer more cost-competitive services at almost 50 per cent less than industry averages, because they don’t have the costs associated with maintaining assets or dealing with the pressure to ensure economies of scale.

This is indicative of an interesting future where your typical logistics provider and vendor in the market will evolve to a more consulting-driven approach and become more like project managers, rather than actual movers of cargo, leading to new models such as E-Brokerage.

E-Brokerage Platforms (Uber of Trucks) Growth in e-retailing, coupled with connectivity technologies, will usher in new solutions for freight and logistics firms. The proliferation of digitalization in trucking will force traditional freight brokers to align their business model toward mobile-based, freight brokerage-type solutions. Mobile apps are critical to a seamless, on-the-move brokerage system, also known as the "Uberization of trucking." In the future, mobile-based freight brokers are expected to develop in-house software solutions by creating potential synergic partnerships with traditional freight brokers, OEMs and telematics providers to facilitate this change.

Imagine a scenario where a mobile app is incorporated to match truck drivers to shipper needs on rates, routes, and schedules. This is expected to automate a number of processes pertaining to delivery status, dispatch, loadfinding and driver payment, apart from providing critical real-time information on consignments right from pickup to delivery. With approximately $20 billion lost in revenue from empty miles and excess capacity issues, the payoffs arising from such business models will result in minimizing operating costs by improving asset utilization and fuel efficiency. The future will witness online services, eliminating traditional freight brokerage firms by offering more agile services in this space.

As new players emerge and the industry unbundles to niche pockets, general operational hurdles of commerce and trade could multiply. For a 150-year-old industry that has been trading in “trust,” this herd of new players will cause new compliance complications. The industry will look toward smarter ways of doing business to avoid paperwork, such as the use of blockchain, which is quickly emerging as a great tool for driving quicker compliance.

Smart Commerce with Blockchain Just as the Internet has triggered the evolution from client applications to web-based apps, cloud solutions and SAAS, the peer-to-peer model of blockchain is exhibiting the potential to generate new innovation channels on how logistics applications can be developed and deployed. In that sense, the blockchain technology could emerge as the new operating system for supply chain networks that combines B2B connectivity with software apps.

For instance, if you are the warehouse

Beverages & Food Processing Times

head responsible for flow of goods, there could be occasions where suppliers fail to deliver goods intact or on time, leading to potential time consuming disputes and punitive legal recourse measures. Blockchain technology will avoid such scenarios as it would allow you to negotiate smart contacts with suppliers that clearly define terms, conditions and the mode of functioning between the two parties, while further mandating the sensitization of all goods to generate critical information on the state of goods and the time of delivery. A pre-condition percentage fine is levied and the amount is withheld from the final contacted price in case there is a delay in delivery if goods are not found intact.

The blockchain implication is expected to have a wider reach when compared to any other supplier management tools given that it is expected to track details right from order initiation at the customer level to shipment information, resulting in creating more visibility within a supply chain not seen before and further allowing all parties to access accurate real-time information anywhere, anytime.

With the evolution of blockchain expanding its applications to future supply chains, another prominent aspect is the possibility of supply chain becoming more compliant, transparent and having innovative payment processing that is expected to create more traction in new types of services, such as mobile freight brokerage systems.

The Future: Self-Orchestrated Supply Chain These five technologies showcase that in today’s dynamic world, intelligence-embedded supply chains offer a competitive advantage. In this digital age where the mantra is “transform or be redundant,” companies will leverage these technologies to create a self-orchestrated supply chain and previously unimaginable efficiencies.

Some predictions we could make on these gains are enumerated below. Imagine: • Gestation gap between ordering and possessing a product is now within seconds; same-day delivery becomes same-hour delivery • Value-added services such as “trade facilitation,” no longer exist as blockchain enables all payments upon approval for letters of credit and issues port payments upon custody changes, etc. Supply chain unbundles from “end to end” and “point A to point B,” as business models shift from integration to aggregation • 50 per cent of all fleets will have some level of autonomy between being semi-autonomous to fully autonomous • Transport volumes in warehouses are reduced by 50 per cent and warehouse sizes decreased by 30 per cent, with more smaller spokes closer to consumers than large, central hubs in city outskirts If even one of these predictions come to fruition, it would mean we have come a long way from our existing cumbersome models and will be in a future that favours data and technology to hedge uncertainty, rather than expensive reactionary methods. It means in the future digital realm, the rewards will be tremendous and companies will gain significant advantages. The supply chain is ripe for transformation and first-mover advantage is up for the taking.

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Vol. 10, Issue 02 - July- 2017

DAIRY NEWS

Fortified milk needs to address health issues milk needs to address health issues

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est Assam Milk Producers Cooperative Union Limited, popularly known as Purabi, has decided to fortify its Smart Milk (toned milk) with vitamins A and D to eradicate micro-nutrient malnutrition.

Present at the launch of new packets of fortified Purabi Milk, Minister for Veterinary and Animal Husbandry Atul Bora said, “There is an urgent need to fortify milk to address various health related issues and the Assam government will give full support for its successful implementation.”

The fortification by WAMUL has been also initiated to support the nation-wide fortification initiative of FSSAI and Tata Trusts. Now it’s fortified milk will be available in a new blue pack with FSSAIs ‘+F’ logo.

FSSAI has recommended fortification of milk with Vitamin A-770 IU per litre and Vitamin D-550 IU per litre and these recommendations have been endorsed by the National Dairy Development Board (NDDB). India is the largest producer of milk in the world with 146.3 million tonnes of production and per capita availability of 322 grams per day.

Bora said, since milk is consumed by all population groups, fortification of milk with certain micronutrients is a good strategy to address micronutrient malnutrition. It is very much essential for overall growth of a human body", Tata Trust Director of Nutrition Programme Dr Rajan Shankar said.

WAMUL procures milk from nearly 200 villagebased milk producer institutions (MPIs) and dairy cooperative societies (DCS) in the districts of Kamrup, Morigaon, Nagaon, Barpeta and Nalbari covering around 5,000 dairy farmers.

As a part of its nationwide campaign, Tata Trusts are intensifying work on improving maternal and infant nutrition besides large-scale food fortification, aiming to reduce incidence of malnutrition by 25 per cent in the five states of country in the next five years, he added.

With quality and health conscious consumers preferring packed parsteurised milk, Purabi has crossed a daily average sales of over 55,000 litres of packed liquid milk in the markets of Guwahati and towns like Jorhat, Nalbari, Rangia, Nagaon, Tezpur, and so on.

The trusts are currently carrying out various programmes in Andhra Pradesh, UP, Maharashtra, Rajasthan, and Tripura in co-operation with the state governments.

The new fortified Smart Milk will be available from June 1st coinciding with the World Milk Day in all stores.

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Vol. 10, Issue 02 - July- 2017

TRADE NEWS

India and Israel signed 12 MoUs worth $4.3 bn

The reviving Indian cold chain sector

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ith years of neglect the Indian cold chain sector has suffered years tremendously resulting in inadequate capacity addition but the present NDA government has managed to turn it around with investor-friendly policies.

The upcoming, World Food India 2017, the flagship summit being hosted by Government of India, will showcase the might, the potential and the opportunities in the sector..

This report, commissioned in 2012, had estimated that the annual value of harvest and post-harvest losses of major agricultural produces at national level was Rs 92,651 crore. The amount was arrived at using production data of 2012-13 at 2014 wholesale prices.

Further, it was found that cumulative wastage for fruits and vegetables stood at 4.58 per cent to 15.88 per cent, followed by fisheries (marine) at 10.52 per cent, oil seeds (3.08 per cent to 9.96 per cent), pulses (6.36 per cent to 8.41 per cent), poultry (6.74 per cent), cereals (4.65 per cent to 5.99 per cent), fisheries-inland (5.23 per cent), meat (2.71 per cent) and milk (0.92 per cent).

Inadequate cold-chain infrastructure was one of the prevalent causes of post-harvest losses in India While the production of high nutrition products like fruits, vegetables, meat and poultry has gone up considerably over the years, what is lacking are the means to safely handle and move these perishable products to the market.

In 2015, the National Centre for Cold-chain Development conducted a study to evaluate panIndia consumption of perishable food items, demand, current status and gaps in cold chain infrastructure.

The overall idea behind the study was to make available facts and figures that would be useful for shaping policies in the future in this regard.

Besides, the government has been making

interventions in several key areas based on the findings of the study.

The total cold storage space created in the country added up to 31.82 million tonnes while the gap in cold storage space, both bulk and hub, was assessed at 3.28 million tonnes. The increase in production of perishable food items without a corresponding increase in cold chain infrastructure had resulted in a situation in the country where there was a demand supply mismatch, ultimately causing massive food loss, price fluctuations and inflation.

The present government at the Centre is making ways to reduce wastage of agricultural produce and drastically bring down post-harvest losses. With this objective, the Ministry of Food Processing Industries (MoFPI) is engaged in implementing various Central Sector Schemes.

These include the Scheme for Development of Infrastructure for Food Processing having components of mega food parks, integrated cold chain, value addition and preservation infrastructure and modernization of abattoirs and the Scheme for Quality Assurance, Codex Standards, Research and Development, along with other promotional activities.

As of March 2017, the MoFPI was assisting 135 integrated cold chain projects under its Central Sector Scheme for Integrated Cold Chain and Value Addition Infrastructure, of which, 97 have already achieved completion and commenced commercial operations. In addition, the government has approved taking up 100 new integrated cold chain projects in 2016-17 for financial assistance, for which a total of 308 integrated cold chain proposals from all over the country have been received against the Expression of Interest. Once all the 135 cold chain projects being assisted by the MoFPI are completed and commence operations, a substantial cold chain capacity would be available.

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rime Minister Narendra Modi on historic visit to Israel signed 12 MoUs with Indian and Israeli companies.12 strategic pacts foreseeing investments worth USD 4.3 billion were signed between Indian and Israeli companies at the first meeting of CEO forum in Tel Aviv.

The focused sectors for mutual collaboration are agriculture, irrigation, water treatment, urban infrastructure, transport (including high speed railways and metro), Pharma, life- sciences, digital technologies, IT and ITes, startups and innovation and defence and homeland security.

The forum identified and stressed on the need to realise opportunities in focus sectors identified during the first meeting of CEOs forum. There was a consensus that the current trade volume amounting to just over USD 4 billion has the potential to reach USD 20 billion in the next five years. To realise this goal, the forum underlined key recommendations to two heads of states.

It has been identified by Israel govt that India holds great business opportunities for Israeli companies in sectors such as transport infrastructure, including roads, railways, civil aviation and traffic management systems, smart cities, renewable energies, water and environment, automotive, food, naval and aerospace industries and defence.

With acquisition of Grocer Max, Tata Group enters grocery business

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s consumers now prefer to buy online rather than offline due to various offers, Tata group plans to enter the grocery segment. Tata Group is buying the management team and technology infrastructure of Gurgaonbased GrocerMax to invest in the grocery sector.

Against competitive rivals Amazon and Bigbasket, the new team will set up the online platform for Trent Hypermarket that is a joint venture between Tata and British retailer Tesco. GrocerMax will down shutters in Gurgaon as Tata Group is not present in North India.

Tata group runs three formats under the Star banner—Dailies, Market and Hyper with about 42 stores. Tesco has nearly 6,800 stores globally. But the opportunity offered by the RS. 32 lakh crore retail market is attractive for any player, foreign or local. Food and grocery account for almost 50% of

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tourism and we see about 3, 00,000 people visiting Seychelles every year. And, we are willing to take that up to 5 lakh. We want restaurateurs to set up

The ambassador to India from Mali, Niankoro Yeah Samake said that his country wants to explore business opportunities from India and Indian businessmen in textile, gold, education and hospitality management. “Nearly 41% of Mali's GDP comes from agriculture that comprises fishery, cropping and livestock. Almost 75% of the country's work force is employed in agriculture. As much 59% of our export is cotton. So, we would like to explore potential from textile industries here in Coimbatore. I have invited a delegation of entrepreneurs to Mali to explore business opportunities.”

Minister counselor to the Uganda High Commission, Margaret Kedisi stated that Uganda is interested in investments in pharmaceuticals, healthcare, automobiles and education. “As much as 30% of our pharmaceutical import is from India.

At the same time, the most preferred destination of treatment by Ugandans is India. So investment in pharma and healthcare industry has potential in Uganda.”

Seychelles is a country known for its tourism and looks towards Indian restaurateurs to set up business there. High commissioner of Seychelles, Philippe Le Gall said, “the pillar of our economy is

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estlé has acquired a minority interest in Freshly, a leading provider of direct-toconsumer (DTC) healthy prepared meals that supplies consumers in 28 states with weekly shipments of meals. As the lead investor in the US $77 million round of new funding announced by Freshly, Nestlé entered an online prepared meals market that is currently US $10 billion in size in the United States and expected to grow at very attractive rates.

outlets for North Indian, South Indian, Benagli, Punjabi, Mughlai and Goan cuisines.”

Director of Botswana Investment and Trade Centre, Mumbai, Gemma Mbegabolawe said in Botswana, a country with 2.3 million people, the population of cattle is higher than that of people.

“We have enough potential for leather. Until now we have exported leather, but we now wish to develop the industry in manufacturing leather products.”

Two years ago, GrocerMax was founded by Gaurav Juneja and K Radhakrishnan. It is a hybrid platform for the grocery that keeps only 10% inventory, sourcing the rest from supermarkets and provisional stores in real-time. Online grocery business will give more information about products or categories of products to consumers that will interest them and provides them with greater availability.

The online grocery space in India has seen a minor shakeout over the past year and has attracted more players as well. While LocalBanya and Pepper-Tap suspended operations, Grofers shut in multiple cities. Offline players such as Reliance Fresh and Godrej Nature’s Basket have launched several initiatives, though the scale may not be too big right now.

Nestle gains minority interest in Freshly

African delegation expect investment opportunities from India delegation from Africa spoke about opportunities in a seminar organised by the Confederation of Indian Industries (CII). Agriculture, food and agroprocessing, leather and leather garments, renewable energy, textiles healthcare, pharmaceuticals and education are the sectors wherein Indian entrepreneurs can find business potential in African countries.

The African nations that had their representative speak about business opportunities in their respective countries were Mali, Seychelles, Uganda, Ehtiopia and Botswana.

the overall retail basket in India.

Hamilton said “Freshly is directly aligned with Nestlé’s strategic focus on finding new avenues to deliver delicious, nutritious meals to consumers in a way that fits their busy lives.

The company was founded by time-constrained professionals who did not have time to cook, but wanted to eat healthy meals. Two years later, their goal to offer heat-and-serve meals has become a successful business that reflects America’s changing eating habits.”

Chairman and CEO, Nestlé USA, Paul Grimwood said “While most food choices are still made in supermarkets, it’s clear that consumers are responding to a growing universe of directto-consumer options, made possible through innovation. Acquiring a position in Freshly not only gives us access to this growth market, but it also brings reciprocal benefits for both companies.

As part of the agreement, Nestlé USA’s Food Division President Jeff Hamilton joined Freshly’s board of directors. Nestlé’s investment will fund Freshly’s construction of a new East Coast kitchen and distribution center in 2018, as it plans for nationwide service.

Headquartered in New York with operations in Phoenix, Freshly was founded in 2015 with 400 employees at present intends to hire additional employees in the next 12 months.

Nestlé will gain visibility into Freshly’s advanced analytics and its highly effective distribution network and Freshly will benefit from our R&D, nutrition and sourcing expertise.”

CEO, Freshly, Michael Wystrach said “We are extremely excited to work with and to learn from Nestlé, the largest food company in the world.

This investment and close partnership will allow Freshly to continue to expand and rapidly scale our reach in order to achieve our goal of being in every household in America.”

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Vol. 10, Issue 02 - July- 2017

NEWS

La-belle introduces High Speed Motion Machines

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aharashtra-based La Belle Machinery Pvt. Ltd. has a comprehensive range of VFFS machines and Table Draw Baggers. Being in this business line for the past 30 years, they have credibly delivered over 1000 machines in India and worldwide across in Asia, Middle East, Europe and Africa. La-Belle has its state-of-the-art manufacturing facility at Nashik, Maharashtra with a well-developed facility for precise gear cutting, heat treatment, & grinding facilities essential for manufacturing quality packing machinery. As per client’s specific

100kg. A range of Pouch Packing Machines are manufactured for variety of products that differ in sizes, proportions and weight; detailed care and focus on quality and value for clients’ money are an important aspect here. La Belle also provides custom designs and manufactures specialized packing concepts.

requirement, these custom-built products with the most competitive price enhance the product’s packaging finish thereby making it more attractive for the consumers and giving value to the business.

In addition, besides providing machines, highly trained engineers for after sales services ensure proper training is imparted to machine operators at the time of induction/commissioning of machines.

La-Belle manufactures Automatic Pouch Packing Machines from 10gm to 5kg packs; covering different products, grammage, packaging material, pouch patterns etc. It also manufactures Semiautomatic Gross Bagger Machines from 10kg to

Recently they have introduced High Speed Continuous Motion Machines that gives an output of 120 pouches per minute. In Fillers, Servo Auger Fillers for highest accuracy & output for powders is their product highly in demand.

Multi-Head Combination Weigh Machines is equipment for solid & random shaped products in 10/14/24 Head Combination provided as per client’s requirement. Multi-Track Machines for powders, single dose liquids like shampoo, mouth fresheners are also offered. Table Draw, Belt Draw Machines, and Gross Bag Fillers upto 100kg are even manufactured by La Belle.

La-belle Machinery Pvt. Ltd is also a supplier of various additional accessories for Pouch Packing Machine such as Batch Coding Device, Pouch Conveyors, Hopper In-feed Conveyors, Nitrogen filling Device, Gusseting Device, and Hole punching Device. Static Charge Remover Device, Pouch Chain Cutting Device, Pouch size Change Parts, Auger Filler Change Parts are some other items available within their banner.

La-Belle is a renowned supplier for Pouch Packing Machines of the highest quality at the most

reasonable prices with excellent spares & service backup. It is a vibrant organization with the right people on job, possessing highly efficient technical/ engineering qualifications with an experienced skilled team of individuals. They have a fully equipped factory that caters to the manufacturing requirement. Precision tools and equipment for gear cutting, heat treatment & grinding are necessary for fabrication hence the machines are custom built as per customers’ specifications and specific needs. La-Belle believes technology and quality should bear no limits and most importantly client should receive latest technology and quality driven machines at reasonable price that ensures value for money.

ACE Technologies manufactures Fully Automatic and Semi-Automatic Filling Lines for Powder/Granules

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CE Technologies manufacturing of Fully Automatic and Semi-Automatic Filling Lines for Powder/Graules to be packed into cans or bottles. The Fully Automatic Filling Lines consists of infeed systems, air jet cleaning machine, filling and capping machines, inspection machines and packing conveyors.

Salient Features: • Fully Automatic filling machines are available with 2 head, 3 head 4 head and 6 head combinations • Machines with both Servo Drives and Clutch Brake options.

• Accurate Weight Control and better Auger speed

variation.

• High Filling Accuracy.

• Electronic Controls.

• No Dripping.

Typical Application: • For packing a wide range of Powder/ Granules Food products like:

• Spices • Ground Coffee • Tea • Rice • Sugar • Pharmaceutical Powders / Granules Our Other Product Range: • Infra Red Dryers.

• Hydraulic Lifters.

• Packing Conveyors.

• Slat Conveyors.

• Roller Conveyors.

• Storage Tanks & Manufacturing Tanks.

• Wide range of Fabricated Equipment’s.

Hy-Line finds new partner for distribution in India

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orld leader in layer poultry genetics, Hy-Line International made an announcement about their new partnership with Srinivasa Hatcheries Group (SH Group) for its distribution of Hy-Line commercial layers throughout India. Henry A. Wallace established Hy-Line in 1936 and was the first poultry breeding company to apply the principles of hybridization to commercial layer breeding.

From August 2017, SH Group will supply day-old chicks from its flagship company, Srinivasa Farms Pvt. Ltd. in Hyderabad, India. Located in Tamil Nadu, Hy-Line Layers Private Ltd. will continue to oversee the production and distribution of parent stock. President of Hy-Line International, Jonathan Cade said. “We see the enormous potential of genetically superior Hy-Line layers to feed the growing population of India an inexpensive source of protein through a partnership with the SH Group. They have earned a reputation of being one of the best poultry breeding companies, adopting international standards of quality, hygiene and efficiency.”

C. Jagapati Rao and Dr. K. Somi Reddy founded SH Group and began with 6,000 layer parents in 1978 and since then it has grown to parent stock of 440,000 layers. SH Group has diverse commercial businesses and presence across multiple sectors, such as poultry breeding, poultry and animal feed, realty and food retailing.

Hy-Line International is a pioneer company with their own in-house molecular genetics team leading the application of DNA-based technology to its breeding and genetics program.

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Vol. 10, Issue 02 - July- 2017

PACKAGING NEWS

New packaged food rules make it consumer-friendly

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s per new rules notified by the Consumer Affairs ministry, all such products will bear a declaration of ‘not for retail sale’.

Airways, educational entities, hotels, hospitals or any other service establishment institutional consumers who buy packaged commodities in bulk for their own use from manufacturers or wholesalers, cannot sell them as a retailer. There cannot be dual maximum retail price (MRP) for the same product by the same manufacturer.

“Unless otherwise specifically provided under any other law, no manufacturer or packer or importer shall declare different MRPs on the identical prepackaged commodity by adopting restrictive trade practices or unfair trade practices under Consumer Protection Act.” In the past, it has been observed that several instances of dual price for same commodities such as drinking water for different locations at airports, hotels and multiplexes. The issue was taken to country's apex consumer commission that ruled against such practice. This recent amendment in Legal Metrology (Packaged Commodities)

Rules also specifies that all packaged items will mention ‘best before’ and ‘use by date’ for easy understanding of consumers. Items that have violated the ‘use by’ date should not be regarded as marketable and must be discarded. The new norms specify increased size of letters to be used on the packaging so that consumers can read them easily. All these norms will come into effect from January 1.

Consumer Affairs minister Ram Vilas Paswan keeps pushing for such amendments in the rules for benefit of the consumers. As per the notification, retail price of packaged item ‘shall clearly indicate that it is the MRP inclusive of all taxes and the price in rupees and paise be rounded off to the nearest Rupee or 50 paise.’ New rule mandates for imported items that manufacturer, packer or importer to mention the barcode or QR code and `e-code' for net quantity assurance of the commodity. They cannot use any government logo for their product including ‘Swachh Bharat’ without getting permission from the government.

Scotland’s PG Paper to establish 3 mills with an investment of 3 mn pounds

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cotland-based PG Paper Company Ltd that provides customised paper solutions, plans to invest 3 million pounds-sterling in setting up three mills to manufacture packaging paper in India by 2018. Founder-CEO, Poonam Gupta said the three facilities will come up in Delhi, Mumbai and in one of the southern states.

Their production capacities are yet to be decided, adding India’s huge demand in this segment was what motivated her to set up facilities. Motivated by the Make-in-India movement, Gupta said she was into advanced stages of planning to set up the three mills which will go operational in 2018. “We will have local partners in the facilities to be set up at Mumbai and in South India,” she added.

Founded in 2003 by the Delhi-born, ScottishIndian entrepreneur, PG Paper Company Ltd’s turnover in 2016 was 35 million pounds estimated

towards an increase to 50 million pounds in 2017.

The company mainly outsources its production to other mills, currently exports to 53 countries worldwide. It sells paper in India across multiple industries like printing, packaging, specialty and publishing. It currently has operations in North India, Mumbai, Kochi and Chennai and plans to expand to Gujarat and the eastern states via Kolkata. PG Paper Company specialises in a variety of printing and writing paper and board, packaging paper and board, tissue and other speciality products. The company buys paper from leading global paper mills in Europe, Asia and North America.

Over 90 per cent of it is exported to the Indian subcontinent, the Middle East and the Far East.

The company has partnerships in India, Pakistan and Turkey.

Uflex aims for 15 per cent volume growth in FY18

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lexible packaging Giant Uflex is foraying into aseptic liquid packaging segment besides adding more products as it aims an overall volume growth of 15 per cent this fiscal.

The company expects its Sanand-based septic liquid packaging manufacturing plant, where it is investing around Rs 580 crore, to be operational this fiscal.

"Overall volume-wise, we might grow 15 per cent or so this year (fiscal)," Uflex Group President (Corporate Finance and Accounts) R K Jain said.

“We may expect a growth of 15 per cent in the top line, and bottomline may be 20 per cent plus.”

The company had unveiled the brand Asepto TM for liquid packaging in January this year. Jain said, “We are working on certain machine parts also...We would bring the innovative technology for printing process and now we are working on some new machine development and printing technology.”

Uflex earned a total consolidated revenue of Rs 6,504.79 crore for FY 2016-17. Its net profit for the year was at Rs 348.46 crore, up 11.03 per cent.

"Last year (FY 2016-17) we have grown, volume wise, 9 to 10 per cent and in the bottomline around 11 to 12 per cent. I think overall, it might be better than what we have grown last year," Jain said.

Currently half of the company’s revenue comes from the overseas market, where it is expecting a revival in the packaging film segment. Regarding implementation of the new tax regime under GST, Jain said.

"There might be little slow down in the industry for one or two months after implementation of GST. As far as we are concerned, we are quite optimistic about the industry for its growth prospects and everything.”

Headquartered in Noida, Uflex has manufacturing facilities in India, the UAE, Mexico, Poland, Egypt, and the USA. Aseptic package is made by laminating poly-ethylene with paperboard and aluminium foil, which ensures that food remains free from bacteria and other harmful microorganisms for a period of at least 8 months at room temperature.

ITC’s packaged food business clocks 13 per cent revenue growth

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our years after ITC raced past Hindustan Unilever in the overall foods business, Its stated leadership ambition in India’s packaged foods business has now inched a step closer to reality last year, with a 13 per cent increase in sales closing the revenue gap between cookies giant Britannia and the century-old conglomerate that ranks third on the industry’s leader-board.

this business segment.

Nestle India had shown sales of Rs 9,223.8 crore last fiscal (it follows Jan-Dec fiscal), while HUL’s revenue in packaged food and refreshment businesses together was Rs 5,972 crore.

ITC’s packaged food business revenue in 201617 increased to Rs 8,036.4 crore from Rs 7,097.5 crore the year before, compared with Britannia’s revenue of Rs 8,684.39 crore (Rs 7,947.9 crore the year before).

ITC, therefore, appears to be on course to realise its leadership goal by overtaking both Britannia and Nestle in the foods business over the next 2-3 years. The revenue growth would be brought about by the accelerated introduction of new products, and entry into 7-8 newer categories.

The cigarette company evidenced its makeover into a diversified group through double-digit growth in the consumer foods business, which crossed the Rs 8,000-crore revenue mark in the fiscal ending March 2017.

ITC’s foods revenue is now about Rs 600 crore less than that of Britannia: The gap was Rs 900 crore the year before. Nestle is the country’s largest in

The company plans to introduce about 40 new food products in the next one year — a record for ITC and has recently started selling premium chocolates and coffee. It is the market leader in packaged flour and premium cream biscuits, and the second-largest player in snacks and instant noodles.

Aseptic Packaging Market anticipated to touch 66.45 Billion USD by 2022

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he aseptic packaging market size is projected to grow from USD 39.62 Billion in 2017 to reach USD 66.45 Billion by 2022, at a CAGR of 10.89%. This market has seen growth in demand, owing to the rise in demand for convenience products and ready-to-eat food products. Increased urbanization, the growth of the dairy beverages market, and growth of the packaging industry have led to an increase in demand for aseptic packaging, particularly in the emerging Asia-Pacific and South American markets.

Materials such as plastic, paper & paperboard, metal, and glass & wood are used in the manufacturing of aseptic packaging. Plastic offers excellent visibility to the product and provides secure and attractive packaging options.

The cartons segment, by type, to dominate the market through 2022. The cartons segment is estimated to account for the largest share in 2022, mainly owing to the growing consumption of food and dairy products. Cartons are made of polyethylene, resin, aluminum foil, and paperboard. They are widely used for packaging a wide variety of liquid processed food such as juices, white & flavored milk, soups, sauces, broths, fruit toppings, syrups, and tomato purees.

The plastic segment, by material, is projected to grow at the highest rate during the forecast period.

Asia-Pacific is projected dominate the Aseptic Packaging Market through 2022. On the basis of key regions, the Aseptic Packaging Market is segmented into North America, Europe, AsiaPacific, South America, and Middle East & Africa. The Asia-Pacific region accounted for the largest share among all the regions in 2016 and is projected to grow at the highest rate from 2017 to 2022, in terms of value. This is mainly due to the increasing demand for aseptic packaging in Chinaand India, coupled with the growing food & beverage industry in these countries.

Due to its low cost, versatility, and easy availability, plastic packaging is used in a variety of applications. It is primarily used in the packaging of food & beverage products as it protects them from oxidation and also provides an extended shelf life to the product.

Printing of expiry date and net quantity on labels on pre-packaged food to be in bigger font size

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he printing of details like expiry date and net quantity on labels on all pre-packaged food in a bigger font size has been made mandatory for manufacturing companies by the government.

Consumer Affairs Minister Ram Vilas Paswan.

Five declarations are a must to be printed on the label. These include MRP (maximum retail price), manufacturing data, expiry date, and net quantity and consumer care details.

These changes have been effected through an amendment to the Legal Metrology (Packaged Commodities) Rules, 2011, by the consumer affairs ministry.

Also the size of words and numbers for mandatory declarations has been increased so that a consumer can easily read..

This is done in the interest of consumers, who should clearly be able to see the details mentioned in the label of pre-packaged food stressed the

Moreover, there will be no dual MRP will be allowed and testing of net quantity and its declaration on pre-packaged food have been made more scientific in the interest of industries.

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Vol. 10, Issue 02 - July- 2017

GST NEWS

Tax refund on stocks may go up from 40% relief to 60% at Council meet

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fter strong demand from companies the goods and services tax (GST) Council might enhance the refund limit for input taxes already paid on existing stock with traders without an invoice, up from the 40 per cent decided earlier.

This may bring some relief for business as the companies who had argued that a partial credit refund will adversely impact the supply chain, as most distributors would like to get into the GST

regime with zero holdover inventories. Business’ demand for enhancement of the refund limit ranges between 60 and 100 per cent.

available as input tax credit. However, in the current system, dealers do not get any input tax credit on excise duty paid.

In turn the GST council has said that they will address the concern and have suggested enhancing the limit from the current 40 per cent to somewhere close to 60 per cent. But, even the Govt. have to balance their revenues and cannot give out more refunds than the tax revenues.

Under GST, tax paid on stock transfers is fully

The government is also likely to propose a mechanism or guideline for high-value items where substitute documents could be furnished in the case of unavailability of bills to avail of full credit refund. The draft transitional credit rules provide for some respite by way of 40 per cent deemed credit on the Central GST portion.

INTERNATIONAL EXPO FOOD WORLD 15th – 17th July Chennai Trade Centre, Nandambakkam, Chennai, India Website: www.saleexpo.org PACKPLUS 3rd – 6th August 2017 Praga� Maidan, New Delhi, India Website: www.PackPlus.in INTERNATIONAL FOOD TECH 21st – 23rd August 2017 Praga� Maidan, New Delhi, India Website: www.foodtechindia.com

Hong Kong Website: hktdc.com/hkfoodexpoFOOD FOOD INGREDIENTS ASIA 13th – 15th September 2017 Bangkok Interna�onal Trade � Exhibi�on Centre, Bangkok, Thailand Website: www.fiasia.com ANUGA 7th– 11th October 2017 Cologne, Germany Website : www.anuga.com Drink Technology 26th- 28st October 2017 Praga� Maidan New Delhi Wwbsite: www.drinktechnology-india.com

FOOD PRO 7th – 9th September 2017 Chennai Website: www.ciifoodpro.in

SWOP PACKAGING 7th – 10th November 2017 Shanghai New Interna�onal Expo Centre, China Website: www.mds.cn

INDIAN ICE CREAM & EXPO 15th – 16th September 2017 Bombay Conven�on � Exhibi�on Centre Nesco, Goregaon (E), Mumbai, India Website: www.indianicecreamcongress.com

Bakery Bizz 1st- 3rd December 2017 Hong Kong Conven�on � Exhibi�on Centre, Hong Kong Website: hktdc.com/hkfoodexpoFOOD

ANNAPOORNA Mumbai 14th – 16th September 2017 Bombay Conven�on � Exhibi�on Centre Nesco, Goregaon (E), Mumbai, India Website: www.tradefairdates.com

Indian Cold Chain 12th – 14th December 2017 Bombay Exhibi�on center indiacoldchainshow.com

HKTDC-FOOD EXPO 17th- 21st September 2017 Hong Kong Conven�on � Exhibi�on Centre,

ANUGA FOOD TEC 20th – 23rd March 2018 Cologne, Germany Website : www.anugafoodtec.com

With about four weeks to go for the GST rollout from July 1, the Council meeting (chaired by Union Finance Minister Arun Jaitley, with state counterparts as members) is expected to finalize rules for the transition and returns.

The Council will also take up the structure of the

anti-profiteering body under the GST regime. And, rates for the remaining seven items where these have not been finalised — gold, textiles, footwear, handicrafts, agricultural implements, etc.

And, the Centre is likely to propose an antiprofiteering body under the Central Board of Excise and Customs (CBEC), with both central and state officials. It seems likely to be headed by someone of the rank of chief commissioner. CBEC has been favoured due to its reach and personnel, which bodies like the Competition Commission of India (CCI) or Consumer Forum lack.

The proposed body would act on its own initiative against erring companies or on information from any source.

GST implementation, FMCG products to see drop in volume

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ccording to Britannia Industries, the FMCG products will see a waning in volume in the short term with channel partners of companies keeping less stock in view of GST, which is set for July 1 launch, according to Britannia Industries.

The key thing is to be alert for the next 3-6 months, which is the time when there is a likelihood of disruptions due to channel down-stocking and consumers are also likely to be cautious in ensuring they maintain a balance of their entire shopping basket.

But Britannia exerts that in the case of Biscuits the tax rates for the overall category is largely neutral, GST would provide a level-playing field to organised players in the industry.

The government has decided to tax biscuits at 18 per cent under the GST while milk will cost less as the GST Council has exempted the daily-use commodity from any levy.

This is going to be a fairly tight month, especially for FMCG companies, as trade will down-stock, no matter, how much communication and assurances are sent out to them, It will be critical for companies to keep a check on what is happening at the ground level due to the new taxation system and keep communication open with their channel partners.

Britannia is quite contented with the 18 per cent tax rate for the biscuit category, and feels that GST should provide a level-playing field to organised players in the industry.

The industry is quite optimistic that if implemented well, GST will be beneficial to companies and consumers in the long run.

GST may greatly help unregistered foodgrain brands

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ompanies like Adani and Cargill selling processed foodgrain fear that the Goods and Services Tax (GST) will encourage traders to sell packets of unregistered brands to avoid tax.

Companies feel households, who started spending on branded products due to quality assurance and economic growth, will either shift to unbranded commodities or will have to take the tax burden

creating inflationary situation.

Similarly, companies making jams and pickles want tax to be lowered from 18 to 5 per cent.

COO of Adani Wilmar said “One of the basic principles of GST is one commodity one tax. In this case there is a deviation by taxing registered packed rice by 5% and providing exemption to unregistered packed rice. This shall encourage traders to pack in unregistered brands to avoid tax and will also impact quality.”

Swati Shukla of Cargill India said “We sell branded, quality and hygienic products, focussing on food safety. The 5% tax will ensure branded, registered commodities — like wheat flour (atta) in our case — will become expensive. This drive of moving people to safer food gets diluted and is not in sync with government policy of moving towards higher food safety standards.”

Current VAT regime registered packed rice, wheat flour and gram flour are exempt from tax but in the recently declared schedule of GST rates would be under 5% tax. The food industry feels that with processing levels dismally low at 4-8% for most items, and putting them in a high tax structure bracket was not right.

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GST NEWS

Vol. 10, Issue 02 - July- 2017

GST effect on the food industry is mixed doubles

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fter the Goods and Services Tax regime implementation, Amul has reduced prices of cottage cheese, dairy whitener and baby food, increased the price of ghee and left cheese, butter and ice cream unchanged However, the producers of pickles, jam, tomato ketchup, protested that GST had raised the taxation level and said sales had slumped after the onset of the new regime, while sellers of branded rice and wheat flour said their distributors had issues with the new system.

According to RS Sodhi, Managing Director, Amul this GST implementation had been normal. He added that there is no expectation ofany major change in revenue with implementation of GST. The consumer gets to gain.

Nitin Seth, MD at GD Foods, the maker of Tops brand of food products, stated that there was a slump in demand on the first day with modern retail stores -Kendriya Bhandar, Easy Day and others not doing the billing as systems were being updated for GST, and they were only selling essential commodities with manual billing.

Rajdhani Group has increased wheat flour (atta) by 5%. Implementation of GST is a challenge as 90% of bulk packing of 50 kg is being sold unbranded.

No one (distributor or retailer) is buying as of now. The other challenge is that retailers have not registered for GST. While KRBL, which owns India Gate basmati is GST ready but the shocker for them is that distributors have not placed orders as they expect GST on branded basmati to be reversed from 5% to zero.

Cabinet Secretary Reviews post GST situation with Secretaries and Senior Officers

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he Cabinet Secretary, Shri P.K. Sinha reviewed the post GST implementation situation with the Secretaries and Senior Officers of the different Ministries/Departments of the Government of India.

The review was focused on the general situation after the GST implementation and consumer impact of GST implementation in particular. As we know that the GST was rolled-out on 1st July, 2017.

The Review Meeting was attended by the Secretaries/Senior Officers of different Ministries/Departments, where Mr. Sinha asked every Secretary to take-up the responsibility of addressing the GST related issues of their respective stakeholders, trade and industry.

He asked them to contact and coordinate with the State Government officers of their Department to ensure smooth implementation of GST. He also asked them to make their GST Cell and Nodal Officers fully equipped to deal with any situation and fully assist their respective stakeholders in post GST situation.

The Cabinet Secretary asked all the Departments to ensure that there is no shortage of products and commodities especially consumer items dealt by the respective Ministry/Department in order to keep the prices under check.

Special emphasis was laid on to keep prices of essential commodities under check The Cabinet Secretary asked all the Departments/Ministry to provide all the relevant information relating to GST concerning their Ministry/Department including GST rates on their respective websites.

Mr. Sinha asked the Departments concerned to ensure that retailers, dealers/ shopkeepers display the post GST prices of different items being sold by them. He said that each Department/Ministry should ensure that benefits of GST are passed on to the consumers by traders/retailers etc which would in turn also help in keeping the inflation under control.

The Cabinet Secretary asked all the Departments that various machines used by dealers, retailers for computerized billing should be calibrated at the earliest as per the new GST rates. This exercise shall be completed in a time bound manner without delay.

The Cabinet Secretary asked all the Departments to be ready to deal with the queries of their respective stakeholders concerning GST law and rates.

In order to achieve the same, the officers of every Ministry should equip themselves with an updated and complete knowledge of all the details relating to GST as applicable in case of their respective Ministry/Department.

Snack Food Association demands 5% GST rate on food products

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he Snack Food Association of Maharashtra (SFAM) urged the government to cut GST rate to 5 per cent from the 12 per cent announced by the GST Council. SFAM President Ajit Mota said in a statement, “GST Council has announced 12 per cent GST rate for Indian traditional namkeen, savories, farsan, potato chips, banana chips etc.

This rate should be reduced to 5 per cent to maintain uniformity with GST rate for sweet meats & mithai. The GST rate for namkeen is 12 per cent which is double than the present tax, but industry hardly receives any input credit as its raw materials are agro based.”

Mota said there is no tax on raw materials like potato, banana, maida, besan, salt, pulses etc.

There is only a marginal tax on masala. Namkeens and sweets are sold from the same shop and are inter related products from the point of view for

common men consumption. With 12 per cent GST, the effective prices of all the products would increase by at least 6 to 8 per cent. Pan-India industry size for namkeens is large with 8 to 10 per cent growth rate per annum.

Mota even added that nearly 95 per cent of industry has been located in unorganised sector.

This industry mainly consists of home, cottage and small scale units and these operate at a very thin margin. Thus, the industry could not sustain 12 per cent GST rate, resulting in closing down of units, which would lead to large scale unemployment.

K L Daga, a member of the association said there is no clarity of GST rate on hot snacks like dhokla, jalebi, samosa, kachori etc. If the hot snacks are consumed in AC restaurants, they would attract 18 per cent GST rate. Thus clarification of GST on hot snacks is still awaited from authorities.

Dual MRP tags will help clear inventories: FMCG cos

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MCG firms said, dual MRP tags indicating pre and post GST rates on unsold consumer products will help companies’ clear inventories and bring transparency to the market.

Besides, the tags would enable end-consumers understand GST’s impact and how the prices have gone up or down. The government has allowed unsold pre-packed items to be marketed to consumers with an add-on sticker indicating the revised price for three months.

A Patanjali spokesperson conveyed that “this relaxation is in favour of smooth transaction of the GST. It would clear the confusion amongst the trader and the manufacturing community over MRP. This would also bring transparency as the consumer must know the aftereffects of GST, whether the prices got reduced or went up. They can analyse it and compare it.” The old MRP will have to be clearly displayed along with the revised MRP sticker. But from October 1, all pre-packed goods will have just one MRP — with GST Hindustan Unilever said it has already started

dispatch of products with revised prices. “HUL manages its inventories tightly and hence we do not intend to avail the relaxation provided by the government to affix a sticker on unsold stocks as of June 30, 2017 to communicate price changes due to GST, if any,” said a HUL spokesperson.

Dabur India is evaluating the recent directive and plans to come up with the revised prices along with the pre- GST rates. Dabur India Chief Financial Officer Lalit Malik said, “We are evaluating it and will take appropriate action, as per law.”

While prices of few FMCG products have come significantly down under the new GST regime, a few other products have become dearer. The GST Council has put daily use goods as bathing soap, hair oil, detergent powder, soap, tissue papers and napkins under 18 per cent tax slab, while detergents and fizzy beverages like coke and Pepsi are placed under 28 per cent tax bracket.

Non-frozen Beef Put in 'Nil' Slab

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he Goods and Services Tax (GST) regime in place, is now being levied on a total of 1,211 commodities. Non-frozen bovine meat, including buff, has been placed under the 'Nil' slab. Industry leaders said this category refers to over-the-counter sale of meat in small shops.

The GST Rate Schedule, which was finalised after the GST Council meeting on May 18, under ‘meat and edible meat offal’ mentions "all goods other than in frozen state and put up in unit containers" in the 'Nil' category. This includes "meat of bovine animals, fresh and chilled" in addition to meat of swine, sheep, goats, horses, asses, mules and hinnies.

If you look at the GST notification, you will find that frozen meat has been taxed in the 12% slab and there are no new taxes on meat exports.

Similarly, non-frozen meat, including bovine meat, has not been taxed under GST. But you need to consider the people who sell this kind of meat.

This is for the sale of over-the-counter sale of meat in small shops. These people already face a lot of hardships.

The small-scale meat traders in UP have already suffered a lot after demonetisation and Yogi Adityanath's crackdown on meat.

If a commodity has been placed under nil-rated goods, it will not be taxed. But since these shops are so small-scale, they would be exempt anyway since their annual turnover is under Rs 20 Lakh.

But under what circumstances would meat shop sellers have to pay GST if meat was not nil-rated?

Even those who earn less than Rs 20 lakh have to pay GST if they conduct transactions across state boundaries. If meat was not nil-rated, a meat shop owner in Ghaziabad would have to pay GST even if he sold meat worth Re. 1. But since it is nil-rated, they can sell the meat across state lines without paying any GST.

Nutraceuticals and food supplements, yet not categorized under GST

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o be on the safer side and not irk the public, the government has reached out to the health ministry for help in classifying nutraceuticals, food supplements, dietary foods and health drinks. As some are prescribed by doctors while others are bought over the counter without any need for prescriptions.

Nutraceuticals and food supplements, which represent a Rs 30,000-crore market, have been omitted from categorization under the goods and services tax (GST) that's set to be rolled out on July 1 or could it mean they would be taxed on the top GST rate of 28%, up from 18-22% now.

So the customers need to gear up as their favourite Bournvita and Horlicks will get costlier after July 1? Alongside with Red Bull, Gatorade, whey protein, and vitamin D3 supplements for infants will be costlier.

Health products which have similar composition and usage would tend to be classified on a common basis as it's difficult for the tax authority to determine whether the product is therapeutic, nutritional supplement, for recuperative purposes.

Also in the absence of differential classification, based on specific parameters, there is risk of several products attracting GST at the higher rate.

Energy drinks are in dire straits too as according to a 2012 order by the commissioner of trade and taxes (Delhi), Red Bull doesn't fall in the aerated drinks category. Likewise, vitamins in tablet, powder or liquid form are neither drugs nor food products. Manufacturers say a tax rate of either 5% or 12% should apply to most of these products under GST. If GST rates are not stated separately for nutraceuticals and food supplements, then there will problems. Most nutraceuticals and food supplements products are available over the counter.

These include Revital (Sun Pharma), Nutrilite (Amway), Horlicks (GSK), Complan (Heinz), Bournvita (Mondelez), Resource (Nestle) and others, which people consume voluntarily to derive health benefits.

The Indian nutraceuticals market is expected to reach $8.5 billion by 2022 from $2.8 billion in 2015, according to a joint study undertaken by ASSOCHAM and RNCOS. As per the report, India accounted for a share of around 2% of the global market which is worth $168 billion as per Frost & Sullivan.

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Vol. 10, Issue 02 - July- 2017

CHOCOLATE NEWS

Research states that Indian women mostly order chocolate items online

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ndian women are 25 per cent more likely to order chocolate items online, reveals a research. World Chocolate Day is celebrated on July 7, and on the occasion Swiggy studied India’s online consumption patterns of chocolate items, a statement from the food ordering and delivery platform said. Almost half of all dessert orders placed online (on Swiggy) are made of chocolate. In fact, 60 per cent of the top orders for dessert on the platform are chocolate based, the study found.

Women are 25 per cent more likely to order chocolate items online. Mondays aren’t the only day Indians order chocolate items to drive away the blues. As per the analysis, India’s ‘Love for chocolate items’ is consistent no matter what day of the week it is. Most ordered chocolate items in India: Death by Chocolate, Hot Chocolate Fudge, Chocolate Milkshake, Chocolate Brownie and Chocolate Truffle Pastry.

Females in the age group of 18-24 order more chocolate items online. Mumbai tends to order the most chocolate items online, followed by Bengaluru and Hyderabad. Chocolate items are ordered late in the night followed by snacks.

Chocolate connects strongly to sweet consumption behaviour and occasions in India. Most happy occasions tend to be collective, and are ritually accompanied by sharing something sweet.

A similar trend was seen with respect to Mother’s Day and Father’s Day this year, where the orders had increased by 19 per cent and 40 per cent respectively than a regular Sunday. The findings are derived from Swiggy’s order analysis for the last six months.

By 2020, Cafe chain Chocolate Room plans 500 outlets in India

C

afe chain Chocolate Room plans to set up 500 outlets by 2020 for which it needs to raise about Rs 100 crore for its ambitious expansion plans. Decade-old cafe chain has about 235 outlets now and they shall focus on tier-two and tier-three cities to achieve its target for adding another 100 outlets by the end of FY18 and 500 outlets by 2020.

Co-founder and CMD of Chocolate Room, Chaitanya Kumar said “The food and beverages market has been very encouraging and we are focusing on even tier-two and tier-three cities to expand our brand. Right from metros we have branches even in cities like Nellore and Dhule, which shows that there is huge market for chocolates and cafes across India.

We have been self funded till now and after ten years of our journey, we are looking for a funding between Rs 70-100 crore for expanding further.

Investment requirements will rise if we increase the number of company owned and operated stores. We will be seeking VC funding and by the end of this year we will complete the process.”

Chocolate Room mostly relied on franchise model till now. It will now focus on company owned and company operated stores and therefore is looking for funding to increase the number of stores.

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Vol. 10, Issue 02 - July- 2017

NEWS

Emerson India Wins the Coveted ASSOCHAM Cold Chain Industry Awards 2017

E

merson’s status as an innovator and an industry leader was affirmed yet again at the prestigious ASSOCHAM (The Associated Chambers of Commerce & Industry of India) Cold Chain Industry Awards 2017. Their Copeland Scroll Digital™ Receiver Units HLR was adjudged winner in the Best Innovative New Cold Chain Technology Solution category.

The award was organized by ASSOCHAM, a leading industry body that has more than 400 Chambers & Trade Associations in its fold and serves more than 4, 50,000 members from all over India. It was presented by Minister of State (MoS) for Food Processing Industries, Sadhvi Niranjan Jyoti at a grand function in New Delhi.

Speaking on the occasion, Shirish Adi, vice president & managing director, India, for Emerson’s Commercial and Residential Solutions platform said “Emerson Digital™ Receiver Units HLR are a unique offering for the India Cold Chain market and have received a very good response.

Winning the ASSOCHAM award is a true recognition of our game changing products and reinforces our leadership position in the heating, ventilation, air-conditioning & refrigeration

(HVACR) Industry” The Digital HLR is designed to meet the needs of Cold Storages, Quick Service Restaurants, and the Retail segment.

Among its breakthrough features is its compact design that provides for a remote condenser and digital scroll™ technology, which combine to provide significant space and energy savings. This award for Emerson comes close on the heels of the ACREX Awards of Excellence 2017 win for its horizontal scroll compressor in the Innovation category.

The product was a winner on account of its horizontal arrangement, compact design and low weight, making it an ideal fit for the height sensitive rail air conditioning application.

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Vol. 10, Issue 02 - July- 2017

INGREDIENTS NEWS

No GST on ‘prasadam’ but ingredients will be taxed: Govt

T

he government said free food supplied by religious institutions does not attract any Goods and Services Tax but the ingredients required to make it, including sugar, vegetable oil and ghee are subject to GST. Finance Ministry said in a statement, “there are media reports suggesting that GST applies on free food supplied in ‘anna kshetras’ run by religious institutions. This is completely untrue.

No GST is applicable on such food supplied free.

Further, prasadam supplied by religious places like temples, mosques, churches, gurudwaras and dargahs attracts nil Central GST and State GST or Integrated GST, as the case may be,” it said.

However, some of the ingredients and services required to make ‘prasadam’ would be subject to GST, it noted, saying these include sugar, vegetable edible oils, ghee, butter and service for transportation of these goods.

“Most of these inputs or input services have multiple uses. Under GST regime, it is difficult to prescribe a separate rate of tax for sugar when supplied for a particular purpose.

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GST being a multi-stage tax, end use based exemptions or concessions are difficult to administer. Therefore, GST does not envisage end use based exemptions. It would, therefore, not be desirable to provide end use based exemption for ingredients or services for making prasadam or food for free distribution by religious institutions,” it added.

Mother’s Recipe brings in home style Chutneys

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other’s Recipe, has brought out authentic Indian chutneys exclusively for its consumers that will be manufactured in its state-of-the-art plant in Pune under strict hygienic conditions.

The chutneys have different variants like Delhi Chutney, Bhelpuri Chutney, Red Chilli Garlic Chutney, Samosa Chutney and Tamarind Date Chutney can easily enhance the taste of everyday homemade snacks in the most honest and flavorful way.

According to the company, their home style range of chutneys are result of extensive research and customer perception and are made from the fresh ingredients to give genuine taste of home cooked food.

Mother's Recipe, the market leader in Indian Pickles has a Product range that now consists of Pickles, condiments, blended spices, papads, appalams, curry pastes, curry powders, ready to Cook Spice Mixes, Ready to Eat meals (Canned and Retort Packing), Mango Chutneys, Ethnic Chutneys, Canned Vegetables, & Mango Pulp.

The company also has strong presence in international markets covering regions like Middle East, Far East, Africa, Australia, UK, Canada and US. Its Indian ethnic foods are exported to more than 40 countries under the Mother’s Recipe Brand.

25

Vol. 10, Issue 02 - July- 2017

TEA & COFFEE NEWS

India’s coffee exports up 11.51 pc in April

I

ndia’s coffee exports grew by 11.5 per cent year-on-year to $92.42 million in April this fiscal because of strong demand in the global markets. India had shipped coffee worth $ 82.88 million in April last year, according to the commerce ministry data. In rupee terms, the exports recorded a growth of 8.22 % at Rs.596.17 crore in April. India mainly ships robusta and arabica varieties of coffee besides instant coffee.

Coffee is one of the most widely traded agricultural commodities in the world. India accounts for about 4.5 per cent of the world coffee production and the industry provides jobs to over six lakh people. India’s major export destinations include Italy, Germany, Greece, Belgium, Spain, and Switzerland. Coffee output in the 2016-17 crop year is estimated to decline to 3,16,700 tonnes from the record level of 3,48,000 tonnes achieved last year, due to severe drought in some key growing states, especially Karnataka.

The country’s tea exports too grew by 8.25 % to USD 49.74 million in April as compared to $ 45.95 million in the same month last year. India is the world’s second biggest tea producer and one of the largest consumers. The country exports CTC (crush— tear—curl) grade tea to countries like Egypt, the UK, and other traditional varieties to Iraq, Iran, and Russia.

CCD expands their dessert portfolio with new Sundaes range

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opular cafe chain, Cafe Coffee Day has expanded their dessert portfolio with the launch of new range of sundaes. ‘Over The Top Sundaes’ is a range of super-loaded and rich sundaes, made with a variety of flavours and ingredients.

The latest Sundaes are available in four flavours, namely, Toffee Surprise, Cocoa Mocha, Rasgulla Royale, and Cocoa Fudge.

The Toffee Surprise is made with rich vanilla ice cream, honey oat cookies, butterscotch nuts, toffee sauce, caramel popcorn, and whipped cream.

Cocoa Mocha is rich with a crunchy cookies base, two scoops of vanilla ice cream, whipped cream, and a choco-stick. Meanwhile, the Cocoa Fudge, rich coca fudge, vanilla ice cream, a layer of coca and a dash of mango sauce with a choco-stick.

The Rasgulla Royale serves the classic Indian sweet with a twist. It is made with vanilla ice cream, rasmlai syrup, frothy whipped cream, and almond flakes.

CEO of Cafe Coffee Day, Venu Madhav said, “All through the summer to the special rainy months ahead, the sundae appeal at CCD reaches a new high with the well-crafted, all new ‘Over The Top Sundaes’’. Loaded with extra scoops, the four sundaes have that little extra one can look forward to at their favourite CCD. Dessert specialists from Italy and India brought their ‘best in dessert love and expertise’ forward to create these offerings. After all, there’s always something new brewing at Cafe Coffee Day.�

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26

Vol. 10, Issue 02 - July- 2017

27

Vol. 10, Issue 02 - July- 2017

NEWS

Colonel & Co nachos and dip now in same pack

Nestle plans to exit U.S. confectionery business

N

estle may sell its roughly $900 million-ayear U.S. confectionery business, which includes Butterfinger and BabyRuth, in the Swiss food group's latest effort to improve the health profile of its sprawling portfolio.

The world's largest packaged foods maker would "explore strategic options", including a possible sale, for the business that also includes 100Grand, SkinnyCow and Raisinets.

Analysts have been speculating that Nestle could exit the U.S. confectionary business which is not in line with its stated strategy of becoming more health and nutrition-focused.

That strategy, underlined by last year's naming of a healthcare veteran as CEO, comes as the whole packaged food sector battles a slowdown from a new generation of savvy consumers that are eating fresher and healthier foods.

The review is limited to the United States, where Nestle does not control its key KitKat brand, and is No. 4 behind Mars, Hershey and Mondelez International.

With annual sales of 900 million Swiss francs ($923 million), the U.S. confectionery business accounts for only 1 per cent of company sales.

Nestle's other products range from instant coffee to mineral water and baby food.

Nestle said it remained "fully committed" to growing its international confectionery business, particularly KitKat, which is made in the United States by Hershey. It said it would also keep the Nestle Toll House baking products.

CLASSIFIED

C

olonel & Co. has introduced two new flavours – Sizzling Jalapeno Nachos with Cheese Dip and Hot Cheese Nachos with Salsa Dip. Colonel & Co.’s innovation comes in an easy to peel off tray which has two compartments that hold the Chip and Dip separately. Indians historically have been habitual to consuming substrates with a dip/ chutney. Fizzy Foodlabs, the parent company behind the young brand identified this sweet spot and came up with their innovation to accommodate both the substrate and dip in one pack.

“The entire proposition including packaging has been designed looking at customer convenience.

It’s the perfect on-the-go snack that can be enjoyed while travelling, watching movies or while hanging out with friends”, says the CEO of Fizzy Foodlabs, Varun Jhawar, who started this company with two of his IIT Bombay friends five years back.

According to industry sources, India’s snack food market is growing at 25 per cent CAGR. Moreover, the market is under penetrated and the fast moving and consuming generation of today allows newer consumption themes to be created.

Colonel & Co, a snack brand intends to make the most of this humongous opportunity.

Launched in Nov. 2016 with two flavors- Peri Peri Nachos with Salsa and Olive & Herb Nachos with Salsa, these snacks are priced at Rs 50 only which makes them a steal for young consumers.

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28

Vol. 10, Issue 02 - July- 2017

NEWS

Natural Colours - What we know and what we need to know

T

he Natural colours business is on a steady rise in India. The demand majorly surfaces from manufacturers who are producing goods for export and are bound to meet country specific legislations regarding the use of food colours. Most synthetic colours are banned in several countries and exporters are forced to use natural colours as they are left with no other option. Some manufacturers are responsibly and voluntarily transitioning to natural colours while some wish to position their product as 'natural and healthy' and insist on using only natural ingredients in their products. While the demand from the first two segments was already there, India is now seeing a deluge of small to medium level niche manufacturers of the latter category ready to raise the bar and honour the consumer sentiment for more 'real' and 'natural' products.

Unfortunately, despite the consumer demand and the right intent, some manufacturers shy away from using natural colours because of the associated myths regarding their stability and colour delivery and continue to use synthetic colours owing to their ease of use, stability and cost effectiveness.

Even the most determined manufacturer willing to transition from synthetic colour to naturals is unable to do so because of lack of application related guidance.

In the Indian scenario, it is important to understand and acknowledge that if natural colours were

Snack product ‘Doritos’ launched

by PepsiCo

B

everages and snacks maker PepsiCo said it has begun manufacturing its nacho chip brand Doritos in India at its Kolkata plant. US-headquartered firm that makes Pepsi and Mountain Dew soft drinks, and Kurkure and Doritos salty snacks, said they will acquire corn, from locally in line with its ‘source in India’ commitment.

PepsiCo Vice President Operations Niteen Pradhan said, “Our goal has been to develop local ecosystems and produce locally.”

V-PSnacks Category, PepsiCo India Jagrut Kotecha said, “Nachos is the fastest growing category in the Indian salty snacks segment and Doritos is well poised to address this robust demand by using locally sourced ingredients.”

The company has launched two made-in-India flavours-Nacho Cheese & Sweet Chilli that shall be available in three price packs of Rs. 25, Rs.50 and Rs.100. PepsiCo statement claims that Doritos is one of its billion dollar brands and one of the fastest growing snacks in its portfolio.

The company said that the nacho chip brand is targeted at towards Indian consumers in the age bracket of 16-24 and will be marketed across India through a mix of large format retail chains, e-commerce platforms and neighbourhood stores.

EDITOR

CONSULTING EDITOR

Firoz H. Naqvi

Basma Husain

technique can be altered strategically to achieve bright stable colours with natural colours. At Kanegrade, we provide handholding right from the product conception stage to our customers.

Myth 2: Natural colours are commercially not viable: Natural colours are what their name says'natural'. They come from real plants, vegetables and botanical sources and the yield of colour pigment from these sources is really low (23%) thus increasing the associated costs. Price and dosage wise natural colours are nowhere in comparison to synthetic colours. However, when compared to natural colours available elsewhere, Kanegrade has been able to produce high pigment products with comparatively lower dosages.

Myth 3: Natural colours are dull: As compared to synthetic colours, natural colours lack the lustre. Studies have found that consumers are now ready to trade off the bright shades with the health benefits that natural colours offer. Further, bright stable colours are available at Kanegrade

commercially not viable they would not have been used successfully in other countries. Let us try and demystify the natural colours.

Myth 1: Natural Colours are not stable, difficult to use and handle: Synthetic colours offer the ease of application since they are purely chemicals and are often non reactive in the product microenvironment. Sometimes manufacturers try to migrate from synthetic colours to natural food colours without any initiation. Without right application related guidance results, obtained from natural colour usage can be really disheartening and demotivating. Natural colours are sensitive towards the product intraenvironment, processing and storage conditions and are responsive to changes in product acidity (pH), processing temperature and packaging. However, these three factors can be effectively controlled and managed if application guidance is provided at the product development stage. Sometimes certain natural ingredients can be added or the processing

�rganhsedrBy

for almost all colour shades.

Myth 4: Natural colours impart their own odour: Until few years back, off odour imparted by the natural colours due to their botanical origin was the major stumbling block faced by even the most transition willing food manufacturer in its usage. However, as a result of years of persistent research we have been able to considerably deodorize and purify natural colours. Further, almost all processed food products contain flavour (natural or nature identical) which is often enough to mask the residual off flavour imparted by the source. A flavour which effectively masks the residual off odour can be provided to deliver expected taste profile.

With robust application based research, right products and timely application related guidance, Kanegrade has been delivering natural food ingredients to over 110 countries across the globe and helping manufacturers successfully transition from synthetic to natural ingredients.

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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 newspaper 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 within the pages of this issue. All disputes are to be referred to Mumbai jurisdiction