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

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Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

FOOD PROCESSING NEWS

Special subsidies to smaller

food processing

units: Minister

he Union Minister of State for Food Processing Industries, Sadhvi Niranjan Jyoti said that special subsidies will be given to smaller food processing units in the country. Speaking at an event on food processing organised by the industry body Assocham, minister said that proposal to set up 200 small food processing units has been given go ahead by the Cabinet. Such units can be set up at an investment of Rs 15-20 crore, and is not restricted by land requirement. “If you set up a cold chain and add food processing service to it, food processing ministry will provide a 50 per cent subsidy. If you set up only a cold chain and use it only for storage or use it to transport materials to food processing units, then we will provide 35 per cent subsidy. We will soon come out with detailed guidelines,” Jyoti added. “Without proper processing system, crops get destroyed. China’s focus on food processing system has paid dividend, while we have lagged behind. I would like to congratulate Prime Minister (Narendra) Modi who worked to strengthen the food processing sector by making a separate ministry, which was earlier under agriculture ministry,” she added. She also said that her ministry is in talks with Indian Railways to introduce “Cold-chain bogies” on superfast trains which will help enable faster transportation of perishable goods. The Union Minister of State for Agriculture and Farmers Welfare, Purshottam Rupala who accompanied Jyoti at the event said, “Mera Bharat Mahan cannot happen if the farmers and villages are not empowered. Our Prime Minister knows this and he is working towards it.”

Uttar Dakshin Food Festival kicked off in Nepal

econd edition of the Uttar Dakshin Food Festival kicked off the premises of Kakori Resturant, at Soaltee Crown Plaza- Nepal. The event was inaugurated by Ranjit Rae, the Indian ambassador to Nepal, and Prabhakar SJB Rana. Festival was also attended by the deputy chief of mission at the Indian embassy Vinay Kumar and the Sri Lankan ambassador to Nepal, WS Perera, among others. “The exciting ranges of dishes from beverages, starters, main course to desserts, are from different parts of India where they have their own culinary ways that have been refined to modern perfection,” said Upal Majumdar, general manager at Soaltee Crowne Plaza. He further added that this festival was dedicated to all Indian food lovers, with the featured dishes hailing from northern Kashmir to Tamil Nadu in the South. Speaking during the event, Yubaraj Pokhrel, executive chef at Soaltee Crowne Plaza said, “It is the celebration of spices. The herbs and condiments have been exclusively imported from India to ensure the quality and rich taste in flavours”. The Uttar Dakshin Festival, offer varieties of gastronomical delights including dosa, upma, murgh nawabi, parathas, aalo methi, pudhina sangam and melagu fry.

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

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

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Vol. 9, Issue 04, September 2016,

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Processed foods should be kept SHOCKING! India’s agriculture wastage reaches nearly 1 Lakh Crore in lowest slab of GST: CII

ith food inflation already over 6 per cent, industry body CII said the rate of GST on processed foods should be kept low or at zero as the country cannot afford to have high taxes. There should be parity in taxes between processed and unprocessed food products, otherwise the very benefit of processed foods will not reach the consumers because of the price difference, it said. “GST on processed food products should be kept either lower or at zero level. To ensure more processing happens, taxes should be kept low. Otherwise, food prices will go up,” Confederation of Indian Industry (CII) National Committee on Food Processing Industries Co-Chairman Piruz Khambatta said. The Goods and Services Tax (GST) Bill was passed by Parliament earlier this month and so far more than five states including, Gujarat, Bihar and Jharkhand, have ratified the bill. The Centre plans to roll out GST from April 1, 2017. Once implemented, GST will subsume excise, service tax and other local levies, will create one market for seamless transfer of goods and services across the country. While the government is yet to decide on the GST rate, the CII has recommended the government to keep the rate on processed food items in three slabs, keeping in mind consumers of different income-groups, he said.

“Most of the countries in the world have lower tax on lot of foods, while their inflation is within 2 per cent. Thus India being country with inflation level of 6 per cent could not afford to have higher GST for food items which constitutes major portion of Consumer Price Index,” said Khambatta, who is also Chairman and Managing Director of Rasna Pvt Ltd. According to CII, GST rate should be kept at a zero level on those processed food products which are essential for survival of ‘poor man’. There should not be tax on all packaged food items bearing maximum retail price (MRP) up to Rs 10, on those processed foods which help to process perishable fruits, vegetables and dairy products and all all packaging materials which are inputs to the food processing. In the second category, the CII has suggested a GST rate of 8-10 per cent on processed foods consumed by ‘common man’ and on those packaged processed food products which are priced more than Rs 10 but less than 20. It also said the GST rate should be kept lower on processed food products which attract lower CENVAT and VAT. In the third category, Khambatta said the government should keep a standard GST rate of 20 per cent for high-end processed food products and all packaged food bearing MRP of more than Rs 20.

ecent data published by the Ministry of Food Processing Industries is enough for your sleepless nights as it states that loss due the wastage of agricultural produce at the national level is estimated at Rs 92,651 crore. Harvest and post-harvest loss of India’s major agricultural goods is almost three times as high as the new budget for the agriculture sector, which has seen an increase of 44% from Rs 24,909 crore in 2015-'16 to Rs 35,984 crore in 2016-'17. According to report about 16% of fruits or vegetables, valued at Rs 40,811 crore, were lost while loss due to wastage of cereals amounted to Rs 20,698 crore. According to an analysis of production data between 2012 and 2014, at

wholesale prices, by the Central Institute of Post-Harvest Engineering and Technology in Ludhiana, Punjab. The food processing ministry also reported that 7% of meat valued at Rs 3,942 crore, was lost, about 60% during storage. However, to curb the losses in supply chain of agriculture produce and to improve the existing infrastructure for food processing, the Ministry of Food Processing Industries has been implementing the Schemes of Mega Food Parks, Integrated Cold Chain, Value Addition and Preservation Infrastructure, and Setting up/ Modernisation of Abattoirs. “Dr Saumitra Chaudhuri Committee in 2012 constituted by the then Planning Commission had indicated cold storage requirement of 61 million tonnes. The present capacity of cold storage is estimated at around 32 million tonnes in the country,” said Minister of State (MoS) for Food Processing Industries Sadhvi Niranjan Jyoti in a written reply in Lok Sabha.

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Vol. 9, Issue 04 - September - 2016

FOOD PROCESSING NEWS

Govt. rejects Adani Food's pulses processing unit proposal

he government has rejected the proposal of Adani Food and Agro-processing Park to set up a pulses processing unit in a SEZ on the grounds that export of the commodity is prohibited. The proposal was rejected with the observation that procuring pulses from DTA (domestic tariff area) by SEZ amounts to exports and exports of pulses are in the prohibited category of outbound shipments.

The decision was taken by the Board of Approval (BoA), headed by Commerce Secretary Rita Teaotia, who alleged that that As SEZs are treated as foreign entities or outside the customs bonded area, any supply or buying of goods or services from these zones are treated as exports and imports. Adani Food and Agro-processing Park Pvt Ltd had proposed that the pulses processing unit would be involved in procurement of pulses from DTA and then it would process the same into split dal and besan. Adani Food is co-developer of a mega food park in the Adani Ports and SEZ in Gujarat. It had sought BoA's nod to set up a pulses processing unit there. They submitted that their proposed unit does not intend to export pulses/split dal till export of these goods is prohibited by the government. Export of pulses was initially prohibited for six months in 2006, and the ban extended from timeto-time. It has been extended till further orders. Although India is the largest producer of pulses, it has to import about 3 million tonnes (MT) of pulses to meet the domestic demand. Price of this commodity is a very sensitive issue in the country. Scrambling to control prices of pulses that have touched Rs 200/kg; the government had approved doubling of import of tur and other dals from Mozambique to 2 lakh tonnes per annum in next five years. The government had also decided to enhance the buffer stock limit of pulses to 8 lakh tonnes for making market intervention when prices firm up in retail markets.

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Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

FOOD PROCESSING NEWS

President inaugurates Mega Food Park in Murshidabad

resident Pranab Mukherjee has inaugurated a Mega Food Park at Jangipur in Murshidabad, West Bengal. This park is aimed at providing critical food processing infrastructure to the farmers of this backward belt in the area. The new food park will minimise the wastage of food products, Mukherjee said. Mukherjee's son Abhijeet, the MP from Jangipur, was also present during the function. Noting that India is second in fruit production after Brazil and next only to China in vegetable production, the President hoped that India would minimise the wastage of food products through projects like this and will help farmers of the area get better price for their produce.

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Mega Food Park at Jangipur has been set up at a cost of Rs 132.71 crore approximately in an area of 82.11 acres with a grant of Rs 50 crore provided by Food processing ministry and the food park is equipped with industrial sheds for SMEs, developed industrial plots for lease to food processing units and facilities of 8,000 MT warehouse, 5,000 MT multi-crop cold storage, 10,000 MT potato cold storage, IQF and Pulping line of 1.5 tonne per hour each, 3,000 MT deep freeze and quality control lab.

To enhance Soy yield Industry-farmer partnership needed

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t is important for Indian Industry to establish partnerships directly with farmers for increased soy acreages, given its protein value, for its large-scale production and consumption stated, J P Meena, special secretary, ministry of food processing industries (MoFPI).

Meena explained that the government had a host of subsidized schemes to an extent of 50 per cent for soy processing through mega food parks up to an investment of Rs 50 crore in land to set up 4-5 soy processing plants.

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The other scheme is likely to be brought in by MoFPI to enable investors to set up processing units in which the investments in plants and machinery could be up to Rs 10 crore, with the government subsidizing to the extent of 35 per cent, he added. Meena urged the industry to develop and diversify the domestic soy market and not to concentrate its efforts on exports, as the development of the domestic market with this approach will bring in higher soy acreages by farmers under cultivation even if its productivity in the Indian context is not at the desired level.

Vol. 9, Issue 04 - September - 2016

SNACKS NEWS

China pushes for the commercialization of genetically modified soybeans over the next five years

hina will push for the commercialization of genetically modified soybeans over the next five years as it seeks to raise the efficiency of its agriculture sector, potentially boosting output of the crop by the world's top soy importer and consumer. China, has spent billions of dollars researching GMO crops, has already embraced the technology for cotton but has not yet permitted the cultivation of any biotech food crops amid fears from some consumers over perceived health risks. In its latest five-year plan for science and technology to 2020, China for the first time outlined specific GMO crops to be developed, including soybeans - used in food products such as tofu and soy sauce and for animal feed - and corn. The use of the technology for corn was flagged in April when an agriculture official said that Beijing could green light GMO crops in the next five years. Corn is used mostly for animal feed and industrial products like starch and sweeteners and a move to biotech crops could be less contentious than with soybeans. Support for new soybean varieties comes as China seeks to overhaul its crop structure. Farmers are being encouraged to switch from growing corn to soybeans and to rotate between crops. But analysts say boosting soybean production could be difficult without higher subsidies. China is expected to produce 12.5 million tonnes of soy in 2016/17 but will import a record 86 million tonnes, according to a forecast by U.S. agriculture officials. China permits the import of GMO soybeans for use in animal feed. Herbicide-resistant soybeans are already planted by most growers in the United States, the world's top soy producer. You can't manually kill weeds on the large farms in the north-east, said an executive at a seed company in China. If if you're going to rotate between soy and corn, herbicide-tolerant soybeans are needed for mechanization," he added, referring to the need for crops to be able to tolerate repeated exposure to weed killers applied by tractors. But cultivating GMO soybeans is likely to face strong resistance from consumers and a local industry that sells GMO-free soybeans at a premium to imported beans. The major production areas for key commodity crops shouldn't be planted with GMOs, said Liu Denggao, vice president of the Chinese Soybean Industry Association. Domestic soybeans are extremely desired and trusted by consumers for food. Commercialization of GMO soy is likely to take a backseat to GMO corn however, said Huang Dafang, professor at the Biotechnology Research Institute under the Chinese Academy of Agricultural Sciences. The government has previously said it will roll out biotech varieties of industrial crops such as corn before moving to food crops like soya. Corn is more important from a production point of view, Huang said.

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Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

NEWS

Make In India program will take Indian Food industry to new heights: Lodha

B has world class expertise in manufacturing Sucrose, an excipient to pharmaceutical companies. Registered under Drug License, MB is the only company in the world to be also registered under USDMF. MB also holds US FDA, KOSHER and HALAL certifications. A highly reputed company, MB is a leading manufacturer and exporter of Sucrose confirming IP, BP, EP, USP & JP standards, Sugar Globules and Sugar Spheres to name a few. MB offers the largest range of Specialty Sugar like double refined sugar, sugar cube, light brown sugar, candy sugar and many more. Company’s Managing Director Samayak Lodha shared the growth of MB with Beverages & Food Processing Times. He said MB entered the world

of sugar in 1994 with its candy sugar plant. Very soon in 1997 it went on to build another facility where it started manufacturing pharma grade sugar (Sucrose) for pharmaceutical companies. “Through these years it kept on adding various products like sugar cubes, sugar sachets, sugar globules, sugar spheres, light brown sugar and many more to its portfolio. MCC pellets, Mannitol pellets and low Endotoxin sugar are the latest addition to our product basket”, Lodha said. Here are the excerpts of the interview. How do you look at the Indian food processing industry and its growth presently? Some of the sectors like milk products, bakery, snacks, ice creams, seafood and beverages are witnessing double digit growth, your comments? India is highly populated country. If they penetrate to only 1% population still it's a very big volume for any product & itself. We were price sensitive market earlier, but scenario is changed. There are lot of Innovative products entered in India like

milk products, chocolates, products premixes, snacks, beverages, cakes etc which are bringing this double digit growth. There are other reasons like technological advancements access to worldwide travel & world tourism informations consumer is getting awareness of new products. This is a good demand which is increasing the growth rate. Do you think over all environment created by government by Make in India, cluster development, startup India, etc have already started benefiting the industry or the results of these schemes are yet to be seen in food processing industry? This is an extremely good initiative by Indian Govt. Though it is in initial stage now, but will be of benefit in future. Due to above projects there will be a major boom in the Indian Food Processing Industry. FDI in multi brand retail of food product is allowed in India, now, will this improve the

scenario of FDI in food processing in the country? Yes, definitely. Companies like Cargill, Walmart, Mc Donald, Dominos, Tesco, Ferrero, Nestle, Puratos have already entered and other world giants like Mars chocolate, Bauli (I) etc are coming & will set up plants worth hundred crore rupees. They intend to capture major chunk of domestic market as well as plan to export to Indian sub-continent & Asian Countries. Minister of Food Processing Industries Harsimrat Kaur Badal has demanded to keep certain percentage mandatory for the investment in infrastructure for the foreign companies planning to invest in multi brand retail in the country. Will this help in creating infrastructure in the food processing & supply chain sector? A wonderful approach by the Minister. When any new giant company enters India, they bring in their cultures & standard along. So our country will benefitted by getting direct access to it. The investments made by them in infrastructures are worth Some Hundred crores of rupees. This itself is assurance of their long term association, which is in the benefit of our country. GST will attract more FDI in food processing, your comments? Yes. Because lot of complications & hindrances will be erased. It will make our country investment friendly & the effect will be seen in future. After GST, do you think the cost of the machinery for food processing & packaging will go down due to streamlining the TAX structure in the country? Yes, this will result in a substantial impact on costing of the product. In future due to GST, prices may go down as double taxation will be eradicated.

Harley Food to raise Rs 300-crore private equity

arley Food Products, which started operations in September last, plans to raise Rs 300 crore private equity this financial year and is looking to enter into strategic partnerships with manufacturing plants. The firm is into branded snack food business. Harley Foods plans to set up two plants in Telangana and Andhra Pradesh in this financial year. Soumiik Mitraa, Chairman and Managing Director of Harley Foods, said, “We are doing monthly sales of Rs 7.5 crore, including Rs 2 crore from the South. We are targeting to achieve a turnover of Rs100 crore in the financial year 2016-17”. Mitraa said the branded snack food market is pegged at Rs1, 000 crore. “We have entered the rural market with lower denomination (Rs 5) packets. We are now expanding to offer packs of Rs10, 15, 30 and 35 with an eye on the urban markets,” he said.

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

SNACKS & NAMKEEM

Indian snacks and namkeen market is growing vertically

he Indian Baking Industry is a massive subset of the food industry in India, being the third highest revenue generating section of the processed food industry. Bakery includes a huge range of products spanning different categories such as cakes, cookies, biscuits, khari, puff, rusk and butter (pej). Different fats & shortenings are required to meet the needs of a vast range of products ranging from breads, rolls, cakes and icings to cookies, pastries, fillings and confections. Biscuits continued to be one the fastest moving packaged food categories from retail channels. It was the most common snack along with tea and coffee in India. Trends in cookies - Whole wheat, hi- fibre, transfree, zero cholesterol, multi-grain and organiccommand front space on packaging and labelling. Share of premium healthy biscuits is likely to increase as manufacturers are now aggressively entering the premium segment on account of higher margins and health awareness prevalent in the segment. Moreover the decision of the bakery industry recently have been strongly influenced by the changing need of the consumer who is looking for quality products that are healthy, in addition to sustainable products due to the rising environmental concerns. At AAKKAMANI Private Limited, we are constantly striving to work to promote good health, and thus have launched a series of transfree bakery fats. Along with being transfree, our shortenings have various advantages like excellent plasticity, good melting profile, good shine and a good flavour release, making us the first Indian oil manufacturing company to accomplish this remarkable feat. AAKKAMANI have been closely working with the bakers to understand their specific requirements and needs. After a lot of experimentation and research, our R&D has developed K-Lite â&#x20AC;&#x201C; a Transfat free aerated multi-purpose and multi-functional bakery shortening which finds application in various bakery products and performs better than any commercially available margarine or bakery shortening. K-Lite is a new age Bakery fat that effectively performs the function of 3(three) fats - Cakes, Cream and Cookies. Namkeen is a product which needs taste, quality and variation. Thanks to a growing population and rising income levels, the Indian food sector has seen a marked change over the years. For packaged snack foods these fundamentals are complemented by two further growth drivers; convenience and the changing eating habits of Indians. The most common items available in the market are packaged sevbhujia, chivra, nuts and moong dal which are now replacing potato chips and finger sticks in shopping bags, helping traditional packaged namkeen topple western snacks for the first time in the branded salty snacks market. A large part of unorganised market is gradually

shifting towards namkeen as companies have increased availability and affordability of such products in recent times. Export potential of the category needs to be harnessed in full measure. At present, ethnic Indian snacks cater only to limited mainstream consumers, that too very sporadically. Haldiram leads in this area too being one of the largest exporters of namkeen. The Salty snacks market in India is very diverse largely comprising of an unbranded segment which comprises of homemade namkeens, mithai shops and unbranded namkeens which are sold loose.However the branded segment has been increasing rapidly lead by the revolution carried out by market leaders Haldiram Foods, Frito LayIndia and Cavinkare. Deep frying is most commonly used method for

preparation of snack food. Selection of frying oil plays a very significant role. Due to the high temperature involved and the high heat conduction of oil, food is cooked faster. An ideal requirement of frying oil is that it should enhance the fried product flavour, visual appeal; it should be non greasy, reusable, it should be used for cooking as well as frying, should be healthy and economical. Keeping in mind these parameters, the R&D team of AAKKAMANI Private Limited has designed specialty culinary oil which is 3 in 1 i.e. used for frying, cooking and healthy -FOODLITE. FOODLITE is a premium refined vegetable oil â&#x20AC;&#x201C; a special fraction of palm oil. It is double deodorized and hence absolutely bland in flavour and taste. Foodlite has a high smoke point (> 235 deg C) and hence does not smoke at frying temperatures

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Beverages & Food Processing Times

which is generally between 160-180 deg C. Some virgin and filtered oils have a very low smoke point (160 deg C appx) and these oils start smoking at frying temperatures, hence not suitable for frying applications. Foodlite being low in PUFA does not impart any greasiness to the frying or cooking vessel and helps keep the kitchen clean. Being light color oil, it does not darken easily on multiple frying and gives additional frying thus saving the fuel. Foodlite being lower in PUFA gives a better oxidative stability and improves the product shelf life. Taking into account all the above mentioned attributes, FOODLITE thus becomes a natural choice for any snack food manufacturer.

Vol. 9, Issue 04 - September - 2016

FOOD PROCESSING

Road shows to attract FDI in food retail

ailing to attract desired FDI after allowing 100% in retail food sector, government is planning road shows to showcase India's food retail sector. After criticised for restrictive rules, officials consulted executives of Walmart, Nestle, Heinz, Thailand's CP Foods and others to seek views on the matter and ask about investment plans. The executives suggested allowing non-food daily items in such stores may be a good idea. The government is said to have dropped plans to include some general merchandise such as soaps and shampoos in the policy, which is the main point of complaint against it — that food alone doesn't make it worthwhile for retailers. After meeting spokespersons of companies said officials were keen on seeking out possible investment commitments. "There seems to be some urgency on part of the government," said one person. Walmart in meeting said that they were taking feedback from everyone and Nestle and Heinz said they are into manufacturing and not in retail. Officials gave a detailed presentation on the road shows that are being planned. "As we have said earlier, the decision to allow 100 per cent FDI under government approval route, including through ecommerce in trading of food products manufactured and/or produced in India is very progressive and far reaching," said Krish Iyer, CEO of Walmart India. "This step will help in reducing wastage, helping farm diversification

and encourage industry to produce locally within the country", he said. However, K Radhakrishnan, a member of the retail committee of the Federation of Indian Chambers of Commerce and Industry (FICCI) commented that Rather than road shows, the government needs to get the policy right, "People are ready to invest but the government has to make it conducive for them," he added.

Nestle declined to comment on the meeting. "We have been in India for 104 years and currently have eight manufacturing facilities with about 7,000 employees working across locations and branches," a Nestle spokesperson said. "In the last few years, we have made significant investments in adding capacities in almost all our factories. The products sold in India are primarily manufactured locally with only a very small fraction of sale consists of imported products. We cater to the domestic market thro-Roadshows to Push the FDI Cart in Food Retail. Some say officials are keen on seeking out possible investment commitments through distributors." Food is the biggest component of India's $600 billion annual retail market. According to government estimates, India's food retail market is expected to swell to Rs 61 lakh crore by 2020 from Rs 25 lakh crore now.

entral government refuses the demand of Walmart and other international players to include personal care products under the policy governing foreign direct investment (FDI) in food retail. Department of Industrial Policy & Promotion said that the policy is only for food products manufactured in India and there is no provision for personal care or non-food items.

Walmart and a leading Brazilian poultry company are among those said to have expressed interest in entering India following the policy announcement. Walmart currently operates cash-and-carry stores that sell to retailers and traders. The food processing industry feels the policy is good enough and that retailers should still be able to take advantage of the policy.

Walmart India Chief Executive Krish Iyer earlier this year demanded that food items along with home and personal care products would make the model more viable.

"This sector has a huge potential and once big companies come they would invest in backend infrastructure where the government has not been able to do much," said Amit Dhanuka, president of the All India Food Processors' Association. "Even without personal care items there is scope to do business." Food processing, seen as a key job generator, is one of the 25 focus areas of the government's 'Make in India' programme. More than $1.04 billion of FDI has entered the food processing sector between April 2014 and March 2016 from companies such as Kellogg, Ferrero India and Mars International.

However this runs counter to what Food Processing Industries Minister Harsimrat Kaur Badal said earlier. She had said the government will add "the sweetener" of allowing personal care products in the policy. Retailers had lobbied for the relaxation as selling food alone wouldn't make business sense and they needed to be allowed to offer more to shoppers. "The industry said that you have allowed FDI only for food, which has very low margins and if it is expensive nobody will buy," Badal had said. "It is only when you allow other things with food the money comes in." The government recently approved 100% FDI in the retailing of food products manufactured in India online or through brick-and-mortar stores. The move is aimed at boosting the fortunes of farmers and the food processing industry. Studies show nearly half of India's fruit & vegetable output is wasted or spoilt for want of adequate processing and storage.

ndia is developing two large food processing parks close to port areas to help grow its food processing export sector as well as support efficient supply chain operations for food imports and distribution to the domestic market.

As an incentive for setting up food processing units, the government is providing 100% income tax exemption for the first five years of operation and 25% for the next five. The FDI policy doesn't stipulate a minimum level of investment in back-end infrastructure as suggested by the food processing ministry. However, the ministry is inviting expressions of interest for six new food parks where preference will be given to companies with 26% foreign equity. This is being done with an idea to encourage the import of advanced technology and creating more avenues of funding.

costs. The parks will connect key actors in the food industry value chain such as farmers, importers, exporters and logistics service providers. They will provide facilities for cleaning, grading, sorting, specialized storage, pre-cooling, testing, packing and other services. The parks are expected to create direct employment opportunities for around 30,000 people and generate average annual turnover of around $65 million to $75 million.

In June, the government allowed 100 per cent FDI in retailing of locally sourced and packaged food products to encourage investments in both brickand mortar and ecommerce besides giving farmers a boost.

Govt. refused to add personal care under FDI in food retail

Mega food parks near Indian ports to boost exports, reduce waste

The "Mega Food Parks" are being developed near Vizakhapatnam and Kakinada port in Andhra Pradesh and in the coastal economic zone of South Konkan in Maharashtra to Dighi, Jaigarh and Marmugao Port. Part of the country’s Sagarmala port-led development program, the projects are expected to cost around $50 million. The proximity to various ports will provide necessary infrastructure facilities and hinterland connectivity, thus ensuring a reduction in logistics

Sagarmala is centered on the modernization of the country’s ports and provision of infrastructure that can move goods to and from ports quickly, efficiently and cost effectively. Port hinterlands are to be industrialized and lead economic transformation in the country’s coastal regions that already account for more than 60 percent of national GDP. A major objective of the overall program is to boost the competitiveness of the export sector by cutting down the cost of logistics. Excessive logistics costs are identified as one of the main reasons Indian industry struggles to compete effectively with that of countries such as China.

Patanjali Ayurved, has successfully bid for a modern food park

oga guru Baba Ramdev’s Patanjali Ayurved Ltd, founded by, and has successfully bid for setting up a modern food park at Mihan.

July 2016), but failed to get any bidder. In the third call, MADC has received Patanjali Ayurved as the technically qualified bidder, the state-run agency said in a release. According to conditions set by the company, the bidders should have a minimum turnover of Rs 300 crore per annum from agro, food, herbal and forest-based processing business in the last three years. Also, their net worth should be Rs 75 crore in the last financial year.

Maharashtra Airport Development Company (MADC) has decided to develop agro, food, herbal and forest -based industrial park on a sprawling 230 acres of land in Mihan. The project is part of the company's efforts to develop the Vidarbha region. Earlier floated two global tenders (in May and

MADC wants a commitment from the park developer to procure raw materials to the tune of at least Rs 100 crore per annum from farmers and members of tribal community living in areas surrounding Mihan. Another condition was that the bidder should make a commitment to train a minimum 1,000 farmers per year across Maharashtra to improve productivity, quality and market intelligence to get them ready for agro-business development.

Mega Food Park in Deogarh soon

ith assistance from the Centre, the Odisha government has planned to establish a mega food park at Badabedeikudar near Barkote in Deogarh district. This move came close on the heels of a recent advertisement by Union ministry of food processing industries, inviting proposals from potential promoters to set up six mega food parks

Beverages & Food Processing Times

in the country. Official sources said micro, small and medium enterprise (MSME) department in a recent letter sent to Odisha Small Industries Corporation (OSIC) directed it to submit application for the proposed food park. A government officer with links to the development said a patch of 50 acres of land has already been identified for the proposed food park.

Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

FOOD SAFETY NEWS

FSSAI ready to restrict junk food in schools

n order to restrict consumption of junk food by children, the food safety regulator is preparing a negative list of products that are high on salt, sugar and fat to prevent their availability in schools and their vicinity. "To realise the dream of a healthy and capable India, FSSAI is formulating regulations to promote and administer food safety at the school level to enable children to inculcate healthy eating habits that will last them a lifetime," Food Safety and Standards Authority of India CEO, Pawan Agarwal said. The list is expected to include an array of food and beverages like chips, pizzas, burgers, readyto eat noodles, sugar-sweetened carbonated and

non carbonated drinks, potato fries etc. The move comes in the wake of rising burden of diabetes and obesity, among youngsters.

FSSAI to stringent safety norms for drinking water soon

he Food Safety and Standards Authority of India (FSSAI) is tightening safety standards for packaged drinking water and plans to come out with norms for spring natural water.

on that," said FSSAI, CEO Pawan AgarwaI. The move comes two months after the FSSAI issued notices to state authorities asking them to crack down on mineral water packaging units that are operating without its licence.

Last year, the Delhi High Court had ordered regulation of junk food consumption among school children through restrictions on the sale of foods high in fat, salt and sugar such as chips, fried foods and sugar-sweetened beverages on and around school premises.

Last month, the food regulator gave a clean chit to PepsiCo, Coca Cola and Bisleri for their packaged water facilities, while crackdowns are underway on some smaller players operating without valid manufacturing licences.

Later, FSSAI had come up with its draft guidelines on availability of wholesome and nutritious food in schools in order to check junk food consumption by children.

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

Stating that "children are not the best judge of their food choice", FSSAI had said schools are not the right place to promote foods high in fat, salt and sugar (HFSS).

"There is some gap in the safety standards for packaged drinking water. At present there is no standard for spring natural water. We are working

Packaged water processors need to have BIS certification and FSSAI licence to start their operations.

FSSAI has put the draft of standards regarding manufacturing of instant noodles Industries should reserve "Canteens in the schools should not be treated as commercial outlets," the regulator had observed, adding that schools should develop a canteen policy to provide nutritious, wholesome and healthy foods. Restrict or limit the availability of most common HFSS foods in schools and areas within 50 metres, the watchdog had said.

to create public awareness on adulteration

nion Food and Consumer Affairs Minister said the industry should set aside funds to create public awareness about food safety. The minister told he has also written to state governments and held discussions with street vendor associations to promote safe food. Paswan also suggested that consumers should have some machines to check adulteration in food products like milk, water and cooking oils as is the case for blood pressure, sugar and fever. According to him, eradicating food adulteration and assuring food safety during major festivals is one of the major challenges for the his ministry. “In India, people will not believe that any food

product is without adulteration,” Paswan said, adding that the scenario is different in other countries.

He spoke about the need for changing public perception about food safety. “Food safety and nutrition should be integral part of people’s daily life,” he added.

The market is currently flooded with vegetables from places which are not the regular sources of procurement with the arrival of the festival season. The action by the Food Safety officials is to prepare for the Onam and Bakrid festivals which are around the corner.

Look out for leafy vegetables Leafy vegetables are more likely to harbour chemicals. They have been found to carry high levels of chemicals in earlier tests. Various markets in the district, which source vegetables from Tamil Nadu and Karnataka, have been selected for sample testing. Samples have been sent to the Ernakulam Regional Analytical Laboratory and the laboratory at Vellayani in Thiruvananthapuram. The results are yet to be out, but the department would take strong action if the vegetables were found unfit for human consumption, said District Chief Food Inspector K. V. Shibu. “Industry should invest certain percentage in consumer awareness about food safety,” Ram Vilas Paswan said while addressing an event to celebrate the first anniversary of ‘Surakshit Khadya Abhiyan’ organised by CII.

These can be prepared from wheat flour and/or rice flour and/or flour of any other cereals, millets, legumes and water as the main ingredients, with or without addition of spices," Minister of State for Health Faggan Singh Kulaste said. Starches, dried fruits and vegetables, nuts, edible protein and egg powder may be added, if required. The standards also provide that the product shall be of good characteristic colour, appearance, texture, aroma and taste and shall be free from added colour, undesirable taste, dirt, insect's larvae and impurities or any other extraneous matter.

Speaking at the event, Food Safety and Standards Authority of India (FSSAI), CEO Pawan Kumar Agarwal said the regulator has come out with many standards since 2011, when it became operational, but there is a need for capacity building at the level of states to enforce these standards.

FSSAI eyes on extra checks for vegetables ood Safety officials are picking up random vegetable samples from the market to test them for the presence of any pesticide or insecticide residue.

ood Safety and Standards Authority (FSSAI) has put the draft of standards regarding manufacturing of instant noodles specifying the ingredients used, quality and safety parameters in public domain.

The standards specify the raw materials that can be used for manufacture of noodles and seasoning provided with the noodles along with the quality and safety parameters of the final product.

"The limits for moisture, acid insoluble ash and acid value have also been specified in these standards," said the minister.

Government will fine tune FSSAI standards to make it more meaningful: Minister

ood Safety and Standards Act 2006 was enacted and it is the right time to take stock of the situation and chalk out future strategies”, said Union Health Minister J.P Nadda while addressing conference of food regulator FSSAI organised to mark the completion of a decade of the Food Safety and Standards Act, 2006. He said that we are all for capacity building not only at the national level, we are working to have high quality labs and to support states (in setting up) high quality laboratories. Stating that the Foods Safety and Standards Authority of India has transformed into a facilitator from a regulator, Nadda said the government will fine tune the standards to make it more meaningful. Minister said the adoption of global safety

Beverages & Food Processing Times

standards would boost domestic demand and exports of agro-based products, thereby generating huge employment opportunities. “The safety and standard of food products is not only a health issue but its related to economic issue. "If we have good safety standards and transparent system and if that is nationally and internationally recognised certainly the economic activity is going to go ahead,” Nadda said. He emphasised on more awareness programmes to promote safe food at home, schools, offices and eateries. In an apparent reference to Maggie controversy, the Minister said there were certain issues last year, some confrontation, some communication gap, but “we have streamlined those issues”.

Vol. 9, Issue 04 - September - 2016

NEWS

AAKKAMANI to launch an Academy

AKKAMANI, a leading oil manufacturing industry launched AAKKAMANI ACADEMY exclusively for their valued customers. The main idea behind the academy is to share the knowledge of oils and fats with their business partners which will help in building the awareness about the subject and giving the best possible results. Academy will serve as a training centre to understand customer needs and offer personalized solutions and services. It will also enable better customer-interaction and engagement thus helping AAKKAMANI to create a good knowledge base. It will also support and train the sales and marketing team to understand their products and applications better. The training at the academy would be undertaken by the experts in the field of lipid and food technology and will offer definite and detailed courses. Over the years, AAK KAMANI PVT LTD has developed into a leading processor of high quality specialty oils and fats for the food industry. Their commitment towards quality & service is their strengths that have helped them to be a leading supplier to the major food processing industries. They are a research oriented organization and have a prime focus in health, nutrition and innovation. To maintain this leadership position in the industry, they have constantly been working towards acquiring a deeper knowledge of the oil molecule. They research their processes and study the chemistry of the oil molecule in a quest to understand its wonders and possibilities. Knowledge of oils and fats has helped them extend their customer base to other industrial sectors like the pharmaceuticals, nutraceuticals, and personal care and oleo chemicals. Academy is further divided into segments which are very specific to theory and practical application. The curriculum is flexible and has been planned in such way that AAKKAMANI can have custommade courses for the clienteles as well as for the sales and marketing group. They would also invite students from the academia and universities to take advantage of the courses being offered. The participants would be given notes/hand-outs on courses offered at the end of the sessions and a certificate as an acknowledgement of participation.

Nestle ready-tocook children's breakfast soon

ith the launch of Ceregrow, Nestle has ventured into the ready-to-cook children's breakfast cereal category. Nestle is recuperating from its biggest setback in the country after its mainstay Maggi noodles was banned last year, is now betting on back-toback launches to push growth in niche categories. Besides rolling out variants for adults under the Maggi umbrella, other new products the company is now selling include ready-to-drink Nescafe, Grekyo yoghurt and Everyday tea. Industry estimates peg the country's breakfast cereal market to be growing in excess of 22% over the last five years. Significant players in the category with three-fourths share include Kellogg's, Bagrry and PepsiCo. But neither of the three directly addresses the breakfast category aimed at 2-5 year olds - a niche Nestle is hoping to capture with the new product.

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

SNACKS & BISCUITS NEWS

Maggi re-claims top slot Parle tighten budgets in noodles market with a with Slowdown in share of 57 per cent the Rs 25 K cr biscuits

estle India's instant noodle brand Maggi, has regained its leadership position capturing 57 per cent share of the market in June this year and within nine months of its relaunch, Maggi noodles now accounts for 57.1 per cent market share of the instant noodles segment riding on its marketing /branding initiatives and new variants.

he Rs 9,500-crore Parle Products has tightened its budgets when it comes to hiring high profile brand ambassadors across its 48-odd brands.

In November, when the company relaunched Maggi after five-month ban, it had 10.9 per cent of the market share, which climbed to 35.2 per cent in December, in March 2016, it had 51 per cent market share.

Praveen Kulkarni, Marketing Manager Parle Products, said “We have taken cost-cutting measures since the cost of media is also going up along with the slowdown in biscuit consumption. There is no return on investment when it comes to getting big names to endorse our brands,’’.

Nestle has launched four variants of Maggi Cuppa Noodles and Maggi Hotheads and has also launched 'No Onion No Garlic" noodles. Nestle had said in a statement that, "Growth in

The Slowdown in the Rs 25,000-crore biscuits category is making the leading player cut down its budget.

India turned positive in June due to good progress with the Maggi noodle relaunch and favourable comparable. We regained a leading market share position. India kept gaining momentum one year after the start of the Maggi noodle withdrawal," Earlier this year, Nestle India launched up to 25 products across various categories in a day to fend off competition.

McDonald’s junking artificial preservatives across its products in India

n an attempt to bring in health conscious consumers amid slowing sales, McDonald's is junking artificial preservatives across its products in India besides further reducing sodium in its mayonnaise and fries, and calories in sauces. The move follows a global policy the burger chain had announced. Globally, McDonald's announced that it will replace corn syrup in hamburger buns with sugar and eliminate artificial preservatives from products such as chicken nuggets and several breakfast items.

its mayonnaise sauces, buns and nuggets by 10% and in its fries by 20%. Another move has been to reduce oil content in sauces from 67% to 25%. In India, they will continue to work closely with suppliers and industry experts toward achieving our global vision and also have started the process of removing antibiotics from the chicken in India. Its suppliers are now allowed to administer government-approved antibiotics only for treating sick chicken. McDonald's was among the first global western style quick service chains to enter the country two decades back. It has 400-plus stores in the country now, operating through a centralized supply chain and product development cell. McDonald's move towards healthier menu is in line with changing customer preferences worldwide. In India, people are eating out less and almost all quick service restaurant chains including Yum! Restaurants-operated KFC and Pizza Hut, and Jubilant Food Works-run Domino's, have been posting low to mid single digit same-store sales.

Parle Products reigns in the glucose segment where Parle G is the market leader with 80 per cent share in the category. Being a volume leader with a 38 per cent share where it has big competitors like Britannia and ITC, Parle had been roping in big names like Amitabh Bachchan, Aamir Khan, Hritik Roshan and Kajol to endorse its brands such as Hide &

Seek, Parle Digestive and Monaco biscuits in the past. “The last time we had a brand ambassador was during the previous IPL season when we had got on board Amitabh Bachchan for the Goldstar brand which we had launched during that season,’’ added Kulkarni. Being a highly penetrated category with almost 91 per cent penetration, biscuits also remain a category with the highest frequency of consumption, according to the March data by IMRB. Yet, there is slowdown in consumption for the category with the rural markets being more impacted than urban. Reaching out to 55 lakh outlets, Parle Products has been increasing its distribution reach by 1015 per cent every year. It has also been trying to reduce distribution costs by having more franchise units closer to the points of sale. “We have more than 100 manufacturing units but there are plans to expand that base to cut distribution costs,’’ added Kulkarni. Keeping a tight reign on prices is also another way the biscuits company is trying to spur demand.

Nestle India launches new variants in its Maggi Noodles portfolio

estle India; Maggi Noodles has regained its leadership in the hearts and minds of the Indian consumer and has gifted new variants in its Maggi Noodles portfolio and relaunched cup noodles, a company statement. It has added two new variants to the Maggi Noodles portfolio -- 'Maggi Hot Heads' and 'Maggi No Onion No Garlic Masala'. The company has also re-launched its cup noodles range with 'Maggi Cuppa Masala' and 'Maggi Cuppa Chilly Chow' and introduced a new variant of cup-noodles -- 'Maggi Hot Heads. According to Suresh Narayanan, Chairman and Managing Director, "It has been the consistent and abiding passion at Nestle to marry the benefits of

our extensive knowledge of flavours, technology and the science of nutrition with the tastes and experiences that delight our consumers." 'Maggi Hotheads Noodles', which is a new subbrand under Maggi Noodles specifically targeted at those who enjoy spicy food, will be available in four flavours with differential spice levels and 'Maggi No Onion No Garlic Masala Noodles', will cater to consumers preferring food without onion and garlic, and will be available initially in Gujarat, Mumbai and Katra. The company further said it has partnered with online marketplace Snapdeal for an online sale of all these variants.

To target the youth Britannia to enter newer Britannia to offer chocolates, categories: Nusli N Wadia breakfast and snacks

In India, it had kicked off the process of shedding weight last year by reducing sodium content across

MCG major Britannia is evaluating entry into new product categories, like chocolates, breakfast, salted snacks and other ready to-eat foods. Britannia said these new categories that help in health management and ready to eat solutions are seeing wider and deeper consumer traction than ever before. “Company’s strategy to increase consumer relevance in a changing food landscape and grow ahead of direct and indirect competition is to strengthen position in bastion categories (biscuit, cake and rusk)," it said. “We believe that your company is well positioned to undertake this transition even while strengthening its hold on the bastion categories, Britannia said in its annual report for 2015-16”. It further said The opportunity in adjacencies such

as chocolate products, breakfast, salted snacks and other ready to-eat foods is huge... your company is evaluating several of these categories carefully and working on business model options before choosing a few for entry.

hairman Nusli N Wadia said, Britannia Industries Ltd is going to enter into newer categories which have an appeal to the youth. The company will be cautious with such launches since it does not want them to be labeled as junk. "There are several products which are in the pipeline," Wadia added.

The firm will also take steps including increasing demand for current assortment through a combination of brand promotion and aggressive distribution expansion, creating fresh demand through innovation on pleasure, health and convenience axes and running the supply chain for better cost efficiency and superior delivered quality. It will also enter attractive adjacencies for an accelerated future growth and evaluate transition of the dairy model to a fully integrated one.

opportunities in adjacencies such as chocolate products, breakfast, salted snacks and other readyto-eat food products is huge. Britannia said in the report that it is evaluating several of these categories carefully and working on business model options before choosing a few for entry. Wadia said currently around 95% of its revenue comes from the bakery segment, with the balance from dairy and bread. Wadia said Britannia has gained market share in biscuits over rivals such as Parle and ITC and the company plans to sustain this performance. "We are going to build new plants in several states, including one in West Bengal. We have put up a new R&D centre for the first time. The capex plans are being worked out," he said.

While Wadia did not divulge further details, Britannia's 2015-16 annual report said

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Packaging Quality Standard-FSSC 22000, BRC/Packaging

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

TRADE NEWS

Productive rice value Britannia plans to set up chain to be built in India second unit in Bengal by UPL Limited

o build a productive rice value chain in India and other parts of the world, UPL Limited, a crop protection and seed company and Amira Nature Foods, manufacturer of branded speciality rice, including basmati and other food products, have created a strategic alliance.

Established in 1969, UPL produces, among others, rice seeds in India and is engaged in developing and marketing innovative rice crop solutions in India and other parts of the world. UPL is represented by its flagship company, RiceCo which develops rice technologies for farmers in the United States, South America, Asia and Africa. Advanta Seeds, a division of UPL, is engaged in production and marketing of hybrid rice seeds in India for more than 10 years. UPL is engaging rice farmers through its digital

advisory services company, "Adarsh Kisan Services" which provides regular agronomic support to farmers while UPL provides farm services that include custom application of crop protection solutions including post-harvest applications. Jai Shroff, the Chief Executive Officer of UPL, stated "Both UPL and Amira have made an important strategic alliance to build a productive rice value chain in India and other parts of the world. Founded in 1915, Amira has evolved into a leading global provider of branded packaged specialty rice, including Basmati and other food products, with sales across five continents around the world. Amira mainly sells Basmati rice, which is a premium long-grain rice grown only in certain regions of the Indian sub-continent, under its flagship Amira brand as well as under other third party brands. Amira sells its products through a broad distribution network in both developed and emerging markets. Amira Nature Foods is an important off-taker of rice from the farmers with capabilities of quality milling and marketing of its rice brands and we look forward to enhancing our product traceability down to the farm level enhancing value across the supply chain", Karan A. Chanana, the chairman of Amira stated.

DS Group in for buying gourmet food retailers Le Marche

S Group (or the Dharampal Satyapal Group) is in advanced talks for buying one of the country's largest independent gourmet food retailers Le Marche which is on the block and diversified it out. The family-owned Marche Retail, which stocks an exhaustive assortment of products ranging from everyday staples, fresh vegetables and fruits, gourmet, bakery, meats, poultry, seafood and frozen foods, has a turnover of close to Rs 100 crore. Le Marche Retail director Nakul Yadav said, "We are in talks with more than one buyer; nothing is conclusive yet". "We could either divest Le Marche as a complete entity or divest part equity. We are exploring all options." For the cash-rich Rs 7,700 crore plus DS Group, the acquisition would mean immediate access to a large retail footprint with a captive premium target consumer base, including expatriates. DS Group has businesses spanning dairy, confectionery, snacks and beverages, hospitality, mouth fresheners, tobacco, packaging, agro forestry, rubber and infrastructure. This will also be its first acquisition. The group's consumer facing businesses include

brands such as Catch, under which it sells spices, spring water, soda, tonic and flavoured water, Chingles gums, Pass Pass mouth freshener, Pulse candy, and flavoured pan masala under brands Rajnigandha and Tulsi. Dairy brands include Ksheer and Dairymax, while its biggest tobacco brand is Baba. We are looking for an opportunity for presence in the retail space. We are in talks with Le Marche. However nothing has been concluded till now," said a DS Group spokesperson. In 1994, it split with the Oberoi’s to set up its independent bakery in Gurgaon. In 2005), it set up its first Le Marche store. According to information posted on its website, Le Marche and Sugar n Spice together have six flagship stores in the Delhi-NCR region. The DS Group has said in the past that it wants a presence across categories such as sauces, jam and pickles —a category which has strongly entrenched players such as Nestle, HUL and Cremica. Anew report by Euromonitor and KPMG titled 'Retail Asia-Pacific Top 500' released earlier this month said that despite the popularity of online stores, in store retailing still accounted for 93% of sales in Asia-Pacific.

Tata Global Beverages posted net profit of Rs 119.52 crore for first quarter

ata Global Beverages posted a consolidated net profit of Rs 119.52 crore for the AprilJune quarter 2016-17 compared to Rs 78.66 crore during the corresponding quarter in 2015-16, a regulatory filing by the company said. The consolidated net profit for the first quarter went up by 51.94 per cent. The total income of the company during the period under review has increased from Rs 1,685.25 crore in 2015-16 to Rs 1,755.25 crore during the quarter

ended June 30, 2016. “We have recorded steady growth in a challenging market environment. We continue to strengthen our brands and grow them, based on strong consumer insights while maintaining focus on operational efficiencies. Our focus on the health and wellness trend will continue, we see this as a key opportunity for our products worldwide,” said Ajoy Misra, Managing Director and CEO of Tata Global Beverages.

o meet the demand of its products FMCG major Britannia Industries of Wadia Group has announced to set up a greenfield unit its second in Bengal by 2018.

improve the efficiency of the unit. It is not very economical now," he added. The state government has offered some incentives, which Britannia would evaluate now, Berry said. "We shall invest Rs 100-150 crore in the plant. Ideally, we would require 20 acres for the plant," he added. Britannia has a contract manufacturing facility in Bengal. The company also has one plant each in Odisha and Bihar. He was confident that East is about to become the No. 1 market for the company by sales volume. "We are looking at a facility in North East also.

After the annual general meeting of the company in Kolkata, Britannia MD Varun Berry said that the blue print of the plant is still not ready. But the company is planning to start work for the factory next year. "Once we start work, it will take 12-14 months to complete," he added. Britannia currently has only one manufacturing unit in Taratala, which is one of the oldest units of the biscuit giant. "There is not much scope to expand the (Taratala) unit. But we are trying to

We are contemplating new units in Andhra Pradesh and Gujarat. All the new plants would come up in next three years and the investment in each plant would be Rs 100-150 crore," he added. Its greenfield factory, which was under construction at Bidadi near Bangalore, is scheduled to be commissioned later this year. The firm is also setting up its first rusk manufacturing unit in Madurai, Tamil Nadu.

Manpasand ready to start its operation from Ambala

anpasand Beverages Limited, informed about completion of the work at the company's new manufacturing facility at Ambala in Haryana. The new facility, set up with an investment of around Rs.160 crore, will contribute additional 45,000 to 50,000 cases per day to Manpasand’s existing capacity of 120,000-125,000 cases per day. Dhirendra Singh, Chairman & Managing Director, Manpasand Beverages said, "The facility will

produce the entire range of Fruits Up drinks, carbonated and non-carbonated, along with our flagship brand, Mango Sip. From a strategic point of view, this facility will give us an upper hand in reaching out to markets in North and NorthEastern India." With the Ambala facility in near operational phase, Manpasand has now five manufacturing facilities located in various parts of India. Two at Vadodara in Gujarat, one in Varanasi, Dehradun, and now in Ambala. The company is also planning to set up a new plant in South India in future.

Sattviko attains FYNE Superfood

egetarian food chain Sattviko has acquired Delhi-based packaged products company FYNE Superfood for an undisclosed amount to ramp up its packaged products offerings. The company said the brand and products of Fyne Superfood will now be merged with Sattviko. Launched in 2014, Sattviko operates through its standalone restaurants and delivery centres in Delhi, Gurgaon and Jaipur.

Prasoon Gupta, cofounder of Sattviko, refused to disclose the acquisition price but said that Darpan Majumdar, one of the co-founders of FYNE Superfood, will join the company and lead the intellectual property transfer for the next six to seven months. FYNE's website says that the company creates food products that are natural and chemical free through packaged food products containing chia, flax seeds and quinoa.

24 Mantra Organic plans to reach to a million households by 2020

4 Mantra Organic - The Organic food company major through one lakh farmers with a total 5 lakh acres under cultivation plans to extend its reach to a million households by 2020. The company, having a catalogue of 90 products, is launching ready-to-eat and ready-to-drink organic products. Also in this category, carbonated organic drinks and several regional dishes like poha, millet dosa, ragiidli, pongal, Punjabi kichdi, organic wheat noodles etc. will be launched so as to attract more consumers.

Beverages & Food Processing Times

The company CEO N Balasubramanian said the organic food industry is growing at a rate 30 to 35 %, which is sustainable for one or two decades given the mounting interest shown by the consumers from all parts of the country in organic food. The company at present has tied up with 32,000 farmers having 1.7 lakh acres under cultivation in 16 states across the country. "Our online sales are growing every year and in percentage terms It is higher than the regular sales," Balasubramanian said.

Vol. 9, Issue 04 - September - 2016

NEWS

Advance aim to provide maximum flexibility and efficiency to its customer

dvanced Cooling & Freezing Systems supplies cooling and freezing equipment to the global food manufacturing industry. It has been committed to continuous innovation, and is widely recognised as being at the forefront of chilling, freezing and hygiene technology. Worldwide Export accounts for 95% of the organisation turnover, with its modular food freezers and other chilling, cooling, frosting and proofing equipment being supplied to food processing companies worldwide. Its client base ranges from small-scale manufacturers to multi-national food producers, operating in virtually every sector, including convenience food and ready meals, frozen snacks,

The ADVANCED systems are custom-made based on the specific production requirements of each client. Using a modular concept enables Advanced Freezers to minimize the installation time while providing its customers with maximum flexibility and efficiency in the manufacturing process. Support Advanced Cooling & Freezing Systems is committed to providing service throughout the entire life cycle of its food freezing and chilling equipment – not only ‘Bringing food freezing to the optimum’, but also keeping it there, too. Through its optimized preventative maintenance programs and by modifying and modernizing the production units. Technology In the past 25 years, our freezer has been established globally as one of the recognized leader in the IQF frozen food industry among Major Frozen Food Producers with our reliable IQF Freezing Systems.

freezers based on customer's requirements. he more you know about Freezers, the more you

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Vol. 9, Issue 04 - September - 2016

EXCLUSIVE INTERVIEW

New FDI reforms to

y love for ice cream emerged at an early age - and has never left! Well now I have twin interest in the most loved dessert of the world; one, I still love eating it especially with my daughters and secondly my business interest…..being a member of Indian Ice Cream Congress as well an integral part of food processing industry; ice cream has become quite synonymous to me. This September we are bringing, one of the most significant events in the global icecream industry- Indian Ice-cream Congress (IICE). This is the 6th edition of IICE, which is a 2 day event being held from 28th September to the 29th September 2016 at the Expo Centre Noida in Noida, India. This is regarded as one of the essential event which will cover the topics of challenges such as the cold chain, ice-cream ingredients, automation, food safety and packaging and related from ice cream industry. Companies providing freezing and handling machines, packaging machines and materials, equipment and component suppliers, cone manufacturers, food ingredients companies, cold chain companies especially cold rooms and deep freezers, consultancy services, traders and stockists, raw material suppliers, milk powder and chocolate suppliers, ice cream bands looking for expansions will participate as exhibitors in the show. It would be a sheer pleasure to see my colleagues from the industry and my eminent readers participate and visit IICE. Talking about ice cream, the industry has had a strong run this year in both manufacturing and retail. Ice cream has done everything from making political statements and breaking Guinness records to meshing with other fast-growing categories like craft beer in 2016, and the neither the year nor summer are over yet. The increased consumer demand for production and innovation in the ice cream segment could be attractive for dairy manufacturers looking to diversify their portfolios. Major ice cream producers made significant strides this year to push the category forward and align with both health and indulgence trends. Ice cream is going to get all dearer this festive season, and not only ice cream, also all the confectionery items are set to become pricier, driven up primarily by higher sugar prices. The higher sugar price is spilling over into candies, sauce, jam, jelly and ice cream, making them costlier as well. The sugar and confectionery category, with a weight of 1.36% in the consumer price index and 3.49% in the food index, has seen the second highest inflation rate after pulses for the last six months. While they are facing cost pressure, food companies get extra room to raise their product prices at this time of the year, with festivals providing guaranteed demand. In the judiciary tangle, the Delhi High Court has directed Britannia Industries Ltd to withdraw its Nutri Choice Digestive Zero biscuits in their current packaging in four weeks from the market after ITC had alleged the former had copied the packaging of its Sunfeast Farmlite Digestive All Good biscuits. The court agreed that the green and yellow colour on the packets made them look very similar, but Britannia maintains its innocence saying that they were not influenced by any design; rather it was their own novelty. Nissin now has the second-largest share in instant noodles within modern trade after category leader Nestlé’s Maggi. After the gigantic debacle of Maggi noodles, consumer tried and they have liked Nisin Top Ramen and Cup Noodles. The crisis gave the consumer and trades an opportunity to be with other brands instead of being focused only on the category leader. Ok so the food processing ministry is all ready to bring in as much of FDI in as possible and to attain this, the government organised a three-day roadshow in UK. The government recently allowed 100 per cent FDI in multi-brand retail for food products produced and processed in India. UK is home to several big players which India can tap, including Tesco, Marks & Spencer (M&S) and Salisbury and to explore them the Food Processing Industries Minister Harsimrat Kaur Badal is leading a team of officials to London for the purpose. Some of the major investments received in the last two years include Linde Group's investment of $200 million in seafood segment in Andhra Pradesh, and USbased Mondelez International's new manufacturing plant in the state. Amidst a debate in India over allowing GM crops, an American expert has said shifting to it can help India increase food production to fight hunger and global warming. According to Dr Julian Adams, professor in the departments of molecular cellular and developmental biology at the University of Michigan, Average yields will go down and GM crops is going to be one of the answers in fighting issues of climate change and population growth. To ensure food security and fight hunger, the world has to increase food production by about 60 per cent by 2050. Taking advantage of genetically engineered technology, scientists can change genes in the seed to make it more tolerant to floods, drought and heat. Also it is said the conversion from traditional farming to GM crop farming has "no affect" on biodiversity. Well that’s all for now, till next time!

ndia is second largest producer in the world next to China. It has 161 million hectares and has highest acreage under irrigation. The industry is estimated to be worth around US$ 67 billion and employing about 13 million people directly and about 35 million people indirectly. At the same time the rural economy of India is considered as poor because the value addition to food products in low of food grains, vegetables, fruits and other cereals has not been done in rural areas. Hence, there is trust on food processing units in rural areas. Food processing is one of the main contributors in the Indian economy and is a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging. In other words, it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful. At the same to start, expand and absorb technology in the food processing sector, one important requirement is capital. The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. Food has also been one of the largest segments in India's retail sector, which was valued at US$ 490 billion in 2013. The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 894.98 billion) by 2020. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020. Shortage of capital in India made way for Foreign Direct Investment (FDI), especially after 1991 economic reforms. In this paper an analysis was made on FDI in India’s food processing sector and the results showed a positive trend though much has be done in the policy level as well as practical aspects.

Foreign Direct Investment A foreign direct investment is an investment in the form of a controlling ownership in a business enterprise in one country by an entity based in another country, it includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans". In a narrow sense, foreign direct investment refers just too building new facility, a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. FDI usually involves participation in management, joint-venture, transfer of technology and expertise. Stock of FDI is the net (i.e., inward FDI minus

Beverages & Food Processing Times

outward FDI) cumulative FDI for any given period. Direct investment excludes investment through purchase of shares. The rapid growth of world population since 1950 has occurred mostly in developing countries. This growth has been matched by more rapid increas in gross domestic product, and thus income per capita has increased in most countries around the world since 1950. Importance and Barriers to FDI An increase in FDI may be associated with improved economic growth due to the influx of capital and increased tax revenues for the host country. Host countries often try to channel FDI investment into new infrastructure and other projects to boost development. Greater competition from new companies can lead to productivity gains and greater efficiency in the host country and it has been suggested that the application of a foreign entity’s policies to a domestic subsidiary may improve corporate governance standards. Furthermore, foreign investment can result in the transfer of soft skills through training and job creation, the availability of more advanced technology for the domestic market and access to research and development resources. The local population may benefit from the employment opportunities created by new businesses. In many instances, the investing company is simply transferring its older production capacity and machines, which might still be appealing to the host country because of technological lags or under-development, in order to avoid competition against its own products by the host country/ company. Introduction of FDI in India Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA), driven by then finance minister Manmohan Singh. As Singh subsequently became the prime minister, this has been one of his top political problems, even in the current times. India disallowed overseas corporate bodies (OCB) to invest in India. India imposes cap on equity holding by foreign investors in various sectors, current FDI in aviation and insurance sectors is limited to a maximum of 49%. Starting from a baseline of less than $1 billion in 1990, a 2012 UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010– 2012. As per the data, the sectors that attracted higher inflows were services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, U.S and UK were among the leading sources of FDI. Based on UNCTAD data FDI flows were $10.4 billion, a drop of 43% from the first half of the last year. FDI Policy for Food Processing Sector In India, the Food Processing sector is attracting more FDI because, it is getting FDI equity. Foreign Direct Investment according proliberal sources is attracting FDI in this sector on a large scale. Earlier in June, Government allowed 100% foreign investment in processed food retailing provided they are manufactured in India that will help retailers such as Marks & Spencer, Tesco, Walmart and IKEA to set up food-only retail outlets. Minister of Food Processing Industries Harsimrat Kaur Badal had written to the Prime Minister's Office pushing for 100% FDI in multi brand retail in the food processing sector saying such move would create of infrastructure, revenue and uplift the farmers. In 2013, India allowed 51% FDI in multi-brand retailing but such ventures come with a host of

Vol. 9, Issue 04 - September - 2016

EXCLUSIVE INTERVIEW

improve the Indian food processing industry riders such as 30% mandatory local sourcing, $100 million upfront investment and half of it in backend infrastructure. With the new ruling in the budget, retailers can sell their own food products without any restriction as long as they are produced within the country, government officials said. In 2012, while approving IKEA's Rs 10,500-crore investment proposal, the Foreign Investment Promotional Board (FIPB), the agency that clears all foreign investments in the country, it struck down IKEA's plans to set up its famous cafes in the stores citing laws that don't allow FDI in food. Later the government gave approval to IKEA to set up restaurants as part of its stores only to be consumer in the stores. Recently, Badal met the Ambassadors/High Commissioners/representatives of the countries viz. UAE, Germany, France, Poland, Australia, Italy, Netherlands, Indonesia, South Korea, Thailand, Canada, China, New Zealand, Brazil, USA, UK, Russia, Japan, Malaysia & Belgium and explained to them the vast opportunities that have arisen in India for foreign food retailers and food manufacturers as a result of the recently announced 100% FDI in trading, including e-commerce, in respect of food products manufactured and/or produced in India Smt. Badal also shared that the Ministry of Food Processing Industries would be providing handholding and facilitation for all foreign investors who would like to invest in the food processing sector in the country," an official statement said. She said there are opportunities in the mega food parks in India wherein foreign investors could set up units immediately and take advantage of 100 per cent FDI in trading of food products manufactured and produced here. Inflow of Foreign Direct Investment in Food Processing Industries During April 2000-March 2016, the food processing industries attracted FDI worth $6.81 billion (or 2.36 per cent of the overall FDI inflows of $288.5 billion during the same period). Food processing sector exports are worth around $38 billion (or 2.5 per cent of world exports in the sector). Through a liberal policy, the government aims to ensure greater value addition to farm produce, bring down wastage of perishables, curb inflation and price fluctuation of food items, raise farmers’ income and generate more employment. Through a more open policy, the government also wants to ensure that India attracts the latest technologies in the food processing sector. Prior to the June 20 decision on allowing 100 per cent FDI trading of food products, FDI flow into the sector did not match the expectations. This, according to experts, was because of the crucial missing link — which was FDI in trading of food items. According to the Confederation of Indian Industry, the move to allow 100 per cent FDI in trading of food products manufactured or produced in India, will help drastically reduce post-harvest

losses and ensure that farmers get better prices. It will also result in the strengthening of backend infrastructure and lead to a direct purchase by retailers, according to the industry body.

Foreign Direct Investment in food processing sector has increased from USD 170.21 Million in 2011-12 to USD 505.88 Million in 2015-16. FDI inflows into the food processing industries has been one of the reasons for 5.78 % growth of gross value added in food processing industries in 2014-15 at 2011-12 prices. Further, as per the Annual Survey of Industries the number of food processing industries in the registered sector has also grown from 36880 in 2011-12 to 37450 in 2013-14. To encourage the development of food processing industries, government has reduced excise duty on food processing and packaging machinery from 10% to 6%, allowed food processing units 100% income tax exemption on profits for the first five years of operation and after that at the rate of 25% income tax exemption on the profits for the next five years, etc. The online food ordering business in India is in its

nascent stage, but witnessing exponential growth. The organised food business in India is worth US$ 48 billion, of which food delivery is valued at US$ 15 billion. With online food delivery players like FoodPanda, Zomato, TinyOwl and Swiggy building scale through partnerships, the organised food business has a huge potential and a promising future. Investments According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US$ 6.70 billion worth of Foreign Direct Investment (FDI) during the period April 2000-December 2015. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also generate employment of nine million person-days. Some of the major investments in this sector in the recent past are: • Henry Ford Health Systems (HFHS), a US-based health and wellness group, plans to enter India by signing a franchise partnership with Chandigarhbased hospitality and food services firm KWalls Hospitality, and set up 'Culinary Wellness' branded stores across the country. • Mondelez International, the US-based confectionery, food, and beverage major, inaugurated its new manufacturing plant in Andhra Pradesh set up for Rs 1,265 crore (US$ 190 million), with an annual production capacity of 250,000 tonnes. • CX Partners led by these two companies have invested around Rs 450 crore ($67.5 million) in cookies, biscuits and breads maker Cremica in August 15. • Mid-market-focused private equity firm Lighthouse Funds has invested Rs 90 crore ($15 million) in Rajasthan-based snacks maker Bikaji

Foods International Ltd to buy 12.5 per cent equity stake in the company in April 2014. • Abu-Dhabi based Al Dahra International Investments LLC has completed its deal with India-based rice exporter Kohinoor Foods Ltd, buying little over 7 million shares or 20 per cent stake for Rs 112.77 crore, in July 2013. • Qatar-based Hassad Food Co has picked up a 51% stake for about $100 million (Rs 544.45 crore) in New Delhi-based basmati rice seller Bush Foods Overseas Pvt. Ltd in April 2013. • PureCircle, a Malaysia-based natural sweetener producer, plans to invest around Rs 1,300 crore (US$ 200 million) in India to set up a manufacturing plant and make the country its regional production and export hub in the next five years. • Global beverage company Pepsi plans to invest Rs 500 crore (US$ 74.56 million) to set up another unit in Maharashtra to make mango, pomegranate and orange-based citrus juices, while biotechnology giant Monsanto plans to set up a seed plant in Buldhana district of Maharashtra. • Swiggy, a food delivery start-up owned by Bundl Technologies Private Limited, has raised Rs 230.34 crore (US$ 33.80 million) in a Series C funding round, with its existing investors SAIF Partners, Accel Partners, Norwest Venture Partners and Apoletto Asia Ltd contributing 79 per cent of the new funds raised. • American doughnut chain Dunkin' Donuts has tied up with local online grocery delivery platform Grofers for home-delivery of its packaged and freshly made products. • Private Equity (PE) firm India Value Fund Advisors (IVFA) plans to invest around US$ 100150 million in the food business in India over the next two years. • Zomato, a restaurant search and discovery platform, has raised US$ 60 million from Singapore government-owned investment company Temasek, along with existing investor Vy Capital, in order to explore new business verticals. • Kwality Ltd has received capital commitment of up to Rs 520 crore via structured finance from KKR India .to fuel its aggressive growth plans as the company continues to rapidly shift its business model towards B2C/retail segment. • Finnish packaging firm Huhtamaki has entered the growing food service packaging market in India by acquiring 51 percent of Val Pack Solutions Private Limited, a privately held paper cup manufacturer based in Mumbai, for approximately Euro 2 million (about Rs 15 crores). Fund Used By Indian Companies Kwality ltd After receiving the capital commitment of upto Rs 520 crore via structured finance from private equity fund from Kohlberg Kravis Roberts & Co Ltd (KKR) India to fuel its aggressive growth plans Kwality Ltd, rose 4.63% to Rs 116.40 on BSE. Kwality said it has received capital commitment of upto Rs 520 crore via structured finance from KKR India, one of the biggest private equity (PE) fund, to fuel the company's aggressive growth plans as it continues to rapidly shift its business model towards B2C/retail segment. The proceeds shall be utilized to fund capex to further strengthen milk procurement infrastructure solely for high-margin value-added product categories including cheese, paneer, table butters, tetra-packs, flavoured milk and yoghurt among others. The company intends to roll out a series of such products in the near future, Kwality said. Additionally, funds will be deployed for part repayment of debt to improve cash flows and augment brand building activities. As part of a change in its business strategy, Kwality is revamping all business functions across the value chain including procurement,

Beverages & Food Processing Times

changing product mix to cater to evolving needs of customers and ensure high quality, brand building, building an extensive distribution network to boost retail presence, set up robust IT infrastructure for process integration, and improve managerial competencies. Huhtamaki Aiming its expansion in India, Finnish packaging firm Huhtamaki buys 51 per cent stake of Val Pack Solutions Private Limited, a privately held paper cup manufacturer based in Mumbai, for approximately Euro 2 million (about Rs 15 crores). The business will become part of Huhtamaki's Foodservice Europe-Asia-Oceania business segment. “Many of our global and regional customers have plans to grow in India. With Val Pack, a wellestablished company with high manufacturing standards, we are able to serve them locally. We also look forward to growing the business further by investing in additional capacity and introducing an extended offering of foodservice packaging to the Indian market,” said Eric Le Lay, executive vice president, Foodservice Europe-Asia-Oceania, Huhtamaki Earlier in July 2014, it acquired Positive Packaging Industries, a privately owned flexible packaging company with nine manufacturing facilities in India and the UAE, for Euro 247 million (about Rs 2009 crore). Zomato Zomato, the restaurant search and discovery app, announced that it has raised $ 60 million in a fresh round of funding that is being led by Singapore investment company, Temasek, with participation from existing investor Vy Capital. It will use the investment to further grow its new business verticals. This takes Zomato’s total funding to ~$ 225 million which comes from a close set of four investors – Info Edge, Sequoia India, Vy Capital, and now Temasek. Deepinder Goyal, Founder and CEO of Zomato, said, “We will use this round to make investments in our new businesses such as online ordering, table reservations, point of sales, and our newlylaunched Whitelabel platform. With this round, and with some of our markets turning profitable recently, Zomato is well capitalised for at least two years. We are also stoked to have Temasek partner with us and are looking forward to building one of the largest food-tech companies in the world.” Bush Foods Bush Foods, which produces and exports packaged basmati rice under the Neesa, Himalayan Crown and Indian Star brands to more than 70 countries, had revenue of $235 million in FY 2012. “We will use these investments to grow our brands both in the domestic as well as the international markets,” Virkaran Awasty, Chairman and Managing director of Bush Foods, said in a statement. Road ahead According to United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2015, India acquired ninth slot in the top 10 countries attracting highest FDI in 2014 as compared to 15th position last year. The report also mentioned that the FDI inflows to India are likely to exhibit an upward trend in 2015 on account of economic recovery. India also jumped 16 notches to 55 among 140 countries in the World Economic Forum’s Global Competitiveness Index that ranks countries on the basis of parameters such as institutions, macroeconomic environment, education, market size and infrastructure among others. India will require around US$ 1 trillion in the 12th Five-Year Plan (2012–17), to fund infrastructure growth covering sectors such as highways, ports and airways. This would require support from FDI flows. During 2014, foreign investment was witnessed in sectors such as services, telecommunications, computer software and hardware, construction development, power, trading, and automobile, among others.

Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

BEVERAGE NEWS

Tzinga back on shelves PepsiCo's stevia revolution will start with with changed formulation 7Up in India

ollowing the government's suggestion to reduce sugar in beverages, PepsiCo's 7Up has become the first fizzy drink in the country to do that by adding stevia, said to be the world's most sought-after natural sweetener. The new product, which is being tested in Gujarat, will contain 30% less sugar. This will also be the first use of stevia to sweeten 7Up anywhere, said Vipul Prakash, PepsiCo's Vice-President for beverages. "If we want to make a meaningful change to our portfolio, we will have to do it two-fold — one is to introduce new choices, and second make the existing portfolio healthier," Prakash said. This is our first and very important move forward in making our existing core range healthier and if it works, the plant based sweetener could be used in the company's products across the range, he added. Minister Harsimrat Kaur Badal had suggested to Indra Nooyi that the company reduce sugar content in its soft drinks when they met during the PepsiCo CEO's visit to India in August 2014. The Food Safety and Standards Authority of India (FSSAI) had cleared the use of stevia in carbonated drinks last November after a governmentcontrolled scientific panel for food additives first

recommended its use four years ago.

leven months after withdrawing its energy drink Tzinga from the market, on the orders of food regulator FSSAI (Food Safety and Standards Authority of India); Hector Beverages Pvt Ltd has re-launched the apple, lemon-mint and

Globally, sugar has become the target of campaigners who say it's among the additives used by the food industry, most responsible for increasing levels of obesity in children and adults. In countries like India, where levels of diabetes are on the rise, the use of sugar is being singled out as a factor that can cause the disease besides making it worse. The use of stevia in fizzy drinks is a first for India. Locally made diet sodas — all colas — use aspartame, a synthetic sweetener, which some activists look askance at. It's a tiny market though — the contribution of diet drinks, including Diet Coke, Diet Pepsi and Coke Zero to overall carbonates remains under 3% in India. Coca-Cola doesn't use stevia in any of its Indian products as of now. Amid growing public concern about sugar content in packaged beverages and foods, Nooyi had told investors in April that Pepsi-Co was "futureproofing its product portfolio, reshaping it to capitalise on consumers' increasing interest in health and wellness". Nooyi had said the company would reduce its reliance on colas through innovation across its beverage portfolio.

esearcher Euromonitor said that Bottled water in India is growing much faster than carbonated drinks mirroring a global trend as consumers go off sugary beverages. Packaged water grew 23-25% in year to March, more than twice the rate at which sodas grew.

Euromonitor India Country Manager Janaki Padmanabhan said globally cola carbonates has received a lot of negative publicity due to high sugar content and its lack of nutritional value. "The trend is also now evident in India. With increasing health awareness, consumers are looking for something that adds to their nutritional intake," Padmanabhan said. In India, however, the tipping point may be some distance away. Sodas accounted for close to Rs 14,000 crore in sales in the year to 2016, while water was Rs 3,000 crore market, internal industry sources estimated, adding that this excludes bulk packaged water. India's top bottled water brands are Ramesh

Euromonitor added that non-cola carbonates, also known as fruit-based carbonates, are gaining traction, more so among younger consumers. Padmanabhan said water and juices are getting a boost because of the non-availability of clean drinking water, especially away from home . "Thanks to new product development along with new flavours, consumers now (can) accommodate other drinks," he said. This along with the move away from carbonates, will result in bottled water and juices benefitting. Earlier this month, global researcher Beverage Marketing Corp forecast that bottled water would dislodge sodas for the first time in the largest consumer market for beverages, the US. The researcher said companies are expected to ship 12.6 million gallons of water in fiscal year 2016, compared with 12.4 million gallons of carbonated beverages. Traditional soda volumes have dropped for the 10th straight year in the US while water has been rising. Coca-Cola reported volumes of non-fizzy beverages including water rose 2% in the second quarter of the current year as sparkling beverages fell 1%.

The company, which is popularly known for its Paper Boat range of ethnic beverages, will be relaunching the fourth variant of Tzinga - tropical trip, next month. “Tzinga was withdrawn from the market last May on the orders of FSSAI. We have re-launched it last month after receiving the go ahead from FSSAI. Priced at Rs.40 for a 250-ml pack, Tzinga is available in modern and general trade outlets across six metros - Bengaluru, Delhi, Mumbai, Chennai, Pune, Hyderabad; and in Assam,” Parvesh Debuka, Head of Marketing – Paper Boat, Hector Beverages, said.

Coca-Cola India suspends operations at Dasna

oca-Cola India has confirmed a temporary halt in production at its plant just outside Delhi, having been in communication with pollution control authorities.

regulatory norms", adding that the site concerned is no exception. "Being a responsible corporate citizen, HCCB complies with the law both in letter and spirit," the firm said in a statement. The bottler confirmed, however, that the facility had stopped production. "We received a communication from Uttar Pradesh State Pollution Control Board and submitted a detailed response. Since UPPCB is reviewing the response, to show our commitment to compliance with regulatory norms, we decided to temporarily suspend manufacturing at Dasna plant".

Bottled water market growing faster in India Chauhan's Bisleri, PepsiCo's Aquafina and CocaCola's Kinley. Coca-Cola relaunched global water brand Bonaqua in May.

orange variants of Tzinga in a new formulation that complies with the FSSAI safety standards.

The firm's bottling arm, Hindustan Coca-Cola Beverages (HCCB), said the company is in contact with the Uttar Pradesh State Pollution Control Board regarding the facility in Dasna. HCCB said all of its plants operate in "full compliance with all

Earlier this year, Coca-Cola India suspended operations at three of its plants in the country, citing low demand and the absence of economic viability. The facilities are situated in the states of Rajasthan, Andhra Pradesh and Meghalaya.

Manpasand Beverages hit Rs 28.64 c in Q1

ruit drink player, Manpasand Beverages Ltd has reported a 82 per cent rise in net profit at Rs 28.64 crore for the first quarter ended June 30. Total Income for Q1 of FY 16-17 at Rs 236.91 crore were higher by 58 per cent over previous fiscal’s same quarter total income of Rs 150.11 crore. Earnings Per Share (EPS) for Q1FY17 was at Rs 5.72.

“Our company’s aim is to grow aggressively across India and continue to delight customers with innovative, superior quality products at affordable prices. With the introduction of ‘FRUITS UP,’ we had not only diversified our product portfolio but also adopted a new strategy to tap the urban markets, after having established a strong presence in the semi-rural markets through our flagship

Beverages & Food Processing Times

brand ‘MANGO SIP’. During the year, we also developed another healthy product called ‘COCO SIP’ – 100 per cent natural packaged tender coconut water, targeting the huge untapped coconut drink segment in India”, said Dhirendra Singh Chairman and MD, Manpasand Beverages. He further added, “The other new initiative we embarked on was to tie up with organised retail players as well as various food and beverage outlets such as Metro Cash & Carry, Aditya Birla Retail, Havmor Ice Cream and Café Coffee Day, to name a few. Manpasand also became the only beverage company to tie up with global ice cream major Baskin Robbins in India. In the coming months, the company is going to forge more such alliances to increase its urban market penetration.” Singh informed that in a view to expand production capacity, we started with setting up of a new manufacturing unit near Ambala during the year and the same was under progress as of March 31, 2016. Modernisation of Vadodara and Varanasi facilities were also completed during the year. We are now looking at setting up more manufacturing facilities; announcement for which will be made soon.

Vol. 9, Issue 04 - September - 2016

A Printing Revolution for Food Packaging

Drew Weightman,

ne coding technology, thermal inkjet (TIJ), has undergone a rapid technical change in the last year, yielding a new solution for food and consumer goods producers. As a result of new solvent TIJ capabilities, for the first time, thermal inkjet is a viable option for production teams looking for high resolution coding options for packaging materials that are non-porous, such as plastics, glossy cartons, foils and films. Thermal inkjet (TIJ) has long been the dominant coding method within the pharmaceutical packaging industry, largely due to its unparalleled ability to print ultra-high resolution variable date codes, logos and unique barcodes via a clean and easy-to-operate system. Unfortunately, the technology had one major and seemingly insurmountable limitation that prevented its use from spreading beyond pharmaceuticals. It was only capable of printing on porous cartons and paper-based packaging substrates; marking on any sort of glossy coating caused the ink to rub right off. Whilst printing on porous materials was sufficient for specially prepared pharmaceutical packaging, most foods and consumer goods are packaged in non-porous materials, making TIJ a no-go. This looks set to change, however, as Videojet, in partnership with its Wolke GmbH business, has launched game-changing technology that enables TIJ to consistently print and adhere to non-porous materials. With the ability to mark most packaging materials, TIJ has become a viable option for packagers of food and consumer goods for the first time ever. The breakthrough came with the development of a new set of printing systems that are hardened to withstand solvent inks of the type used in continuous inkjet (CIJ) technology. Videojet TIJ technology now falls into two broad categories: aqueous and solvent. The former, which remains

unchanged, is a set of printing systems designed to use the traditional water-based inks for marking on porous packaging materials. The new solvent category, on the other hand, features systems using inks that are able to dry on and adhere to, nonporous packaging materials. The solvent category is further divided into systems for weak solvents and hard solvents. Weak solvents, such as acetone and ethanol, are suitable for marking some nonporous materials like varnished cardboard cartons, whilst methy-ethyl ketone solvent (MEK) enables marking on more challenging plastics like films or rigid containers. The upshot is that producers of food and consumer goods can now unlock the benefits of thermal inkjet that were previously closed to them due to the limited adhesion of solvent inks. Chief among these benefits are the ability to produce high clarity codes and the cleanliness and simplicity of TIJ coders. Videojet’s thermal inkjet systems offer variable resolution up to 600dpi, although 300dpi (roughly four times that of CIJ) is often the preferred choice to optimize ink consumption. Furthermore, unlike laser or CIJ marking systems, Videojet thermal inkjet does not ‘scribe’ the code with a single marking point but instead uses a large number of tiny printing nozzles simultaneously. The result is that complex codes or multiple lines of text up to 50mm (2 inches) in height can be coded without any impact on production speed or print quality. Thermal inkjet also represents one of the cleanest and simplest to operate coding methods, which benefits production efficiency. TIJ systems feature a simple ink circuit with all ink contained in the expendable cartridge. With no ink pumps or filters, the operation of a thermal inkjet coder is clean, easy and reliable. When a cartridge is exhausted, an operator simply inserts a new cartridge and the coder is ready to print. For many food production

operations this can be a huge advantage when compared with their current coding set-up. Contrary to some misconceptions, thermal inkjet is also an extremely cost effective coding technology. While the cost of individual TIJ cartridges can be higher than the cost of CIJ consumables, when the total cost of ownership is calculated, TIJ comes out on top. The simplified operation, more efficient utilization of ink, reliability and enhanced print capabilities typically result in a strong return on investment. Many of the new solvent systems Videojet has installed recently into customer sites have been quickly followed by orders for additional units as production managers experience the savings and operational ease of thermal inkjet. Besides the inherent advantages of the technology, changing coding demands may also steer food producers and packers towards TIJ. Production teams face increased retailer pressure and a multitude of regulations demanding highly readable, content rich codes. They must also find ways to meet new requests from brand owners to print variable marketing codes, graphics, logos and even QR codes. These demands will prove too challenging for many older coding solutions, particularly analog coding methods such as hot stamp, roller coders, embossing wheels, legacy CIJ or situations where flexographic presses are marking static packaging elements that really should be variable or customizable. With its new technological capabilities, thermal inkjet coding can now play a role in addressing these evolving demands. TIJ can mark complex variable data, including certification symbols, expiry dates, batch or lot information, promotional offers, simple graphics or branding and regulatory information such as country of origin labeling (COOL).

Beverages & Food Processing Times

Videojet’s breakthrough comes at a time when brand owners and manufacturers are increasingly migrating from rigid formats to flexible packaging and bioplastics. Pouches in particular are growing fast - their use is predicted to increase year on year by over 6% up to 2018. Previously the main coding option for pouches would have been thermal transfer, but with increasing requirements for the inclusion of more complex data on pack, TIJ now presents an attractive alternative. Of course this is not to suggest that thermal inkjet will replace continuous inkjet or thermal transfer coding. CIJ offers a throw distance of 10mm or more, which can be essential when marking curved surfaces such as beverage cans. Further, whilst CIJ can have difficulty marking complex codes, to mark a simple date code, no technology can rival the linear speed of CIJ. CIJ also offers unrivaled flexibility, so manufacturers who intend to move a single coder between multiple lines will continue to value its easy setup and versatility. Even with this latest breakthrough, TIJ has its limits. It requires a relatively flat surface to mark the code on, which means marking round bottles, beverage cans or irregularly shaped containers will not be a good idea. That said, for cartons, tubs, pouches, foils, films and a multitude of other packaging types that feature at least one semiflat surface, TIJ technology is now a compelling choice. Where TIJ can really excel is in creating a whole new coding paradigm for food and consumer goods packagers. With the new TIJ ethanol and MEK technologies that are now available, high definition coding via a system that is maintenancefree, future-proof and capable of producing complex codes is now an exciting reality. Drew Weightman is Global Business Unit Manager at Videojet Technologies.

Vol. 9, Issue 04 - September - 2016

MEAT NEWS

In next 5 years, Indian buffalo meat exports to reach Rs 40,000 crore

ndian buffalo meat exports have grown at a CAGR of 29%, from Rs. 3,533 crore in FY2008 to Rs 26,682 crore in FY2016, accounting for 20% of the world's total buffalo meat/beef exports (in volume terms) and becoming the largest volume exporter of buffalo meat/beef, overtaking Brazil and Australia.

Over the next 5 years, Indian buffalo meat exports would reach close to Rs 40,000 crore at a compounded annual growth rate (CAGR) of 8%, says ICRA in its study on the Indian Buffalo Meat Export Industry. India by and large exports only buffalo meat as opposed to other countries which export primarily beef. This growth has been driven both by volume expansion (CAGR of 13%). For the last two consecutive years, buffalo meat has been the highest agri-related export from India and its contribution to the total export revenue has almost doubled to 1.56% in FY2016 from 0.76% in FY2011. India has been exporting buffalo meat for almost two decades; this industry has only gained momentum in the last decade. This can be

attributed to multiple factors, such as increasing demand from developing countries (like China, Vietnam, Thailand, etc), slaughtering method meeting the religious requirements of certain ethnicities, price competitiveness, high buffalo population, and low domestic consumption. Within India, Uttar Pradesh accounts for the highest share (28%) of the total buffalo population and has also emerged as the leading buffalo meat-producing state - housing around 60% of the total standalone slaughter houses, standalone meat processing units and fully-integrated meat processing units. The buffalo meat industry is largely unorganised and fragmented in nature; and only moderately regulated. It also remains vulnerable to risks pertaining to social and political sensitivity, sustainability of buffalo population, disease outbreak risk and high competition from the global beef industry (this was evident in FY2016 when the buffalo meat exports from India declined for the first time in almost a decade as depreciation of Brazilian currency made Brazilian beef exports more attractive). Additionally in spite of the development over the past few years, there is considerable scope for improvement in the industry infrastructure, which lags the standards of some of the major global beef exporting countries. However, the government is addressing these challenges by focusing on improving industry infrastructure through direct as well as through increased private sector participation, rollout of schemes to sustain the availability of buffaloes for slaughtering and developing a wider regulatory framework to ensure higher quality control.

Goa lifted Karnataka poultry import ban

oa has lifted the ban over Karnataka poultry import imposed after news of bird flu outbreak in Karnataka district Bidar earlier in July. The much-awaited order was recently issued by the office of the collector and district magistrate, South Goa. Copies of the same were circulated among poultry stakeholders. "The director of animal husbandry and veterinary services has reported that the joint commissioner, animal husbandry, WRDDL, Pune, has permitted the commencement of movement of poultry and poultry products from Karnataka to Goa," the letter read. After the Western Regional Disease Diagnostic Laboratory (WRDDL) in Aundh tested samples of bird flu outbreak in Bidar in January this year, reports were sent to Goa's directorate of animal husbandry and veterinary services. The state's

o increase entrepreneurial activity in the poultry sector Central government has asked Andhra Pradesh and Bihar governments to come up with proposals to upscale the Rural Backyard Poultry Development programme under the National Livelihood Mission (NLM).

Seafood like marine fish, shrimp, crab, squid, octopus and cuttlefish are in high demand in foreign countries. Major markets for Odisha seafood include South East Asia (39%) followed by USA (28%), European Union (11%) and Japan (9%). Official sources said 97.79% of the total value is contributed State Fisheries and Animal Resources Development Secretary Bishnupada Sethi, discussed with Devendra Chaudhury, Union Secretary for Animal Husbandry, Dairying and Fisheries in New Delhi. He said that Air cargo facility will give a boost to high value commodities of Chilika and other places. "We can send live fish, crab, shrimp or other seafood to other countries every day," said Sethi. Secretary added that one of the major contributors of seafood in state is Chilika Lake. Around 12,137 MT of fish, shrimps and crabs are produced from

Under the proposed programme, 150 birds are to be distributed in a focused manner in five or six villages or a cluster in one block of a district of the State, said a release issued by the agriculture ministry of India. On the basis of the review of the ongoing poultry

He added that the Goa-Karnataka borders have been opened up for chicken import and poultry products have been arriving into the state smoothly.

development schemes targeting the small and marginal farmers, state governments were advised to design sustainable projects specifically for this category of farmers. The Indian government also wants to popularise commercial broilers in rural areas. For this, the government expects that Poultry Federation of India, All India Poultry Breeders Association, National Egg Coordination Committee may consider making proposals with Self Help Groups, Cooperatives and Farmers’ Producers’ Organisations and facilitating direct funding.

India is a poultry product exporter and it produces 3.7 million tonnes (Mt) of broiler meat annually ranking fifth behind the US (17.3 Mt), Brazil (12.7 Mt), China (13 Mt) and the European Union (10.3 Mt).

China extends anti-subsidy duties on import US chicken for another five year

he Chinese Ministry of Commerce (MOC) has extended the anti-subsidy duties on imports of broiler chicken products from the US for another five years. The extension will be effective from 30 August. The previous fiveyear duties expired last year.

by frozen shrimp. Sethi said the state produces 5.21 lakh MT fish annually. Out of the total production, share of fresh water production is 3.37 lakh MT, brackish water (40,000 MT). The state government is also planning to hold discussion with Paradip Port to arrange more containers with modern facilities for effective export of seafood through sea route. Now most of the businessmen and producers are sending their seafood items through Visakhapatnam and Kolkata port, official sources said.

President of the All Goa Poultry Traders' Association, JaiKrishna Naik, said, "We are happy that the ordeal is over. The past few weeks were tough for us and business had become difficult."

Well-coordinated efforts can boost poultry production in the country, officials from the Department of Animal Husbandry, Dairying & Fisheries (DADF) believe.

Chilika annually. These have got high demand in overseas markets as they are natural products. The state has witnessed increase in exports from 14,161 metric tonne (MT) in 2007-08 to 35,630 MT in 2015-16. It generated revenue of Rs 347.9 crore in 2007-08 to Rs 1,787.84 crore in 2015-16 with highest Rs 2,069.17 crore during 2014-15 when it exported nearly 15% of its production, official sources said.

Earlier this month, members of the All-Goa Poultry Traders' Association submitted a memorandum to the South Goa collectorate and the department of animal husbandry and veterinary services, Panaji, requesting that the ban be lifted.

Centre to upscale the Rural Backyard Poultry under NLM

Odisha target 3K cr seafood export in FY 15-16 disha government has targeted Rs.3000 crores export of seafood in 15-16 fiscal by creating necessary infrastructure like air cargo handling at the Biju Patnaik International Airport to facilitate export of live seafood items to other countries. Government has adopted a comprehensive fishery policy to generate Rs 10,000 crore by 2020 from seafood exports.

two district collectors, who were subsequently alerted about the finding, had issued orders in July to impose a two-month-long ban on the supply of broilers and chicken from Karnataka.

The decision to extend the anti-subsidy duties follows after Chinese officials launched an investigation to check whether stopping the duties would impact the domestic industry.

Beverages & Food Processing Times

The investigation reports suggested that the local poultry industry would face a setback if the government lifts the anti-subsidy duties on chicken products imported from the US. A statement published on the official website of Chinese MOC said that the anti-subsidy duties on the imports will be set at approximately 4%. In 2010, the government imposed the anti-dumping duties on chicken products imported from the US. In May, the US challenged China’s anti-dumping and countervailing duties for non-compliance with the World Trade Organisation rules. The duties act as high taxes on US poultry exports to China, and were challenged on behalf of American poultry producers and the hundreds of thousands of people employed in the industry. However, the Chinese officials claimed that the chickens were subsidized in the US and then exported to the Chinese market at below market prices.

Vol. 9, Issue 04 - September - 2016

BISCUITS NEWS

Healthier children’s snack Are you visiting India Cold solutions promise to please Chain Show this October? both kids and parents

rla Foods Ingredients has developed a suite of protein and calcium-rich snacking solutions for kids that offer a healthier alternative to chocolate bars and other popular children’s snacks. According to research, snacks now account about one quarter of the calories American children consume. In tandem with this, there is growing concern over obesity rates among children, which means the role of snacking in their diets is now under greater scrutiny than ever before. As a result, demand is increasing for kids’ snacks that taste great and offer good nutrition – which is not always an easy balance to achieve. To enable manufacturers to create healthier, tastier snacks for children, Arla Foods Ingredients has launched a selection of new product application solutions. Everything have been benchmarked against existing kids’ snacks options to ensure they represent a superior option in terms of improved nutrition. Among the solutions in the range is a delicious and easy-to-eat 35g ‘dairy bar’ that offers as much calcium per serving as in one glass of milk. It is 20% protein and low in calories. Benchmarked against a typical chocolate bar, it contains one third less energy and, since more of the calories come from protein, energy release in the body is optimised. This helps youngsters to feel fuller for longer than

they would with confectionery, where more of the energy comes from sugars. Other innovative application solutions in the new snacking range include a yoghurt bar, a healthier dessert, a carbonised drinking yoghurt and a snack cake with less than 100 calories per serving. Kasia Lindegaard, Customer Marketing Manager at Arla Foods Ingredients, said: “When they are given the choice, most kids will choose snacks that are fatty and sugary because they prefer the taste. The challenge for parents, therefore, is to buy and offer them healthier products they will still enjoy but which are better for them. For food manufacturers, this presents an excellent opportunity to meet a clear need in the market. Now, with these new dairy-based kids’ snacking solutions, there is an easy way to develop new products that will appeal to both parents and children.” The kids’ snacking application solutions have been launched under Arla Foods Ingredients’ Goodness of Dairy campaign. This highlights how dairy ingredients are key to tapping into growing consumer demand for food that is natural, healthy and delivers great taste and texture. Protein contributes to growth in muscle mass, and calcium is needed for the maintenance of normal bones.

his October, 6th edition of India Cold Chain Show will open in Mumbai and is set to be the biggest of all previous editions. The industry has seen the rise of ICCS and it evolution as the power center of Indian cold chain industry. The number of exhibitors has gone up by over 25% this year with several new international and Indian companies participating at the show for the first time. The profile of exhibitors is clearly segregated into three key segments – Cold Storage, Cold Transport and Cold Supply Chain that give our visitors complete solutions for their cold chain business. ICCS this year has also seen a great value edition this year with transport giant, TATA Motors coming in as the main sponsor at the show. With their complete fleet on display, Tata Motors is expected to draw a high quantity of buyers especially with other big brands of transport being already present at the show. The new age technology in insulation, refrigeration, power conservation, storage, IT support and infrastructure will make the visit to ICCS this year worthwhile. With a certain implementation of GST in near future, this year’s edition hold key importance for cold chain industry in India as it is set to change the dynamics of logistics operations. Another important factor in this year’s edition is a special focus on the booming e-commerce business. Started late for fresh produce, online retail is capturing everyone’s imagination. This sector is definitely going to be instrumental in changing landscape of cold storage and transport business.

Beverages & Food Processing Times

The very popular, India Cold Chain Conference, in its 5th edition will be a high profile one this year. Theme of the conference this year ‘Taking Cold Chain Business to Next Level: Opportunities & Challenges’ is in conjunction with the special focus areas of this edition including GST, online retail and maximizing profits. The two day conference is designed with very interesting sessions holding importance for all stakeholders of cold chain industry in India. Debuting this year, START-UP WORKSHOP for new entrants in the industry is set to be the high point of the show. Since first edition, we have been getting a lot of queries from individuals and business houses wanting to get into the cold storage and transport operations. We decided to have a focused sessions addressing the entry concerns, setting up a profitable business model and running smooth operations by using sophisticated technology and equipment. The workshop is open for all delegates and visitors and will take place on 18th November at the show floor. Since cold chain business is highly reliant on Government policies and regulatory framework, ICCS has gathered the support of all leading bodies including National Horticulture Board of India (NHB), APEDA and National Centre for Cold Chain Development (NCCD) to have substantial presence of policymakers at the show. There are enough reasons for everyone in the industry to plan their visit and attend the most promising event on cold chain sector in India.

Vol. 9, Issue 04 - September - 2016

NEWS

Tata suffers loss from tea plantation

he tea plantation business of the Tata’s has turned loss-making in fiscal 2016, due to factors like labour unrest, high payouts, and crop damages. Tata Global Beverages, then called Tata Tea, had about a decade back demerged its tea plantation businesses, country's second largest, into two separate unlisted entities for southern and north-eastern plantations, respectively, where Tata Global hold significant minority stakes in the two unlisted companies. While the southern plantation under Kanan Devan Hills Plantations Co Pvt Ltd suffered losses in fiscal 2016, the northern plantation under Amalgamated Plantations has been in the red for two consecutive fiscals 2015 and 2016, separate disclosures made by the two companies revealed. Munnar-headquartered Kanan Devan where Tata Global Beverages holds 28.52% stake, has suffered a loss of Rs 19.56 crore in fiscal 2016 against a profit of Rs 5.02 crore in the previous year on a turnover base of Rs 264.08 crores lower than Rs 288.53 crore in fiscal 2015. While tea prices ruled marginally higher during the year compared to the previous year, turnover fell resulting in losses on account of labour unrest. "The unfortunate labour unrest that started in the first week of September and which continued well into mid-October resulted in a heavy loss of

production of more than three million kilograms of made tea and its aftermath badly affected the tea fields which had to be rectified at huge costs which affected both production and income," the unlisted company told its shareholders. During FY16, Kanan Devan could produce 20.64 million kg of tea against 24.12 million kg a year back, exporting 2.47 million kg mainly to the UK, Russia, Poland and China. Amalgamated Plantations, the Assam and Bengal based Plantation Company headquartered in Kolkata is the bigger of the two producing 38.07 million kg in fiscal 2016, generating a turnover of Rs 579.96 crore, against 37.16 million kg in the previous year, a marginal increase of 2%. While price realisation was higher, the business suffered losses for the second year in a row due to inherent high-cost structure. Losses rose to Rs 23.42 crore against Rs 13.76 crore in the previous year on the impact of negotiated wage settlement, procurement cost of subsidised food grains, pesticide expenditure along with spends on social infrastructure. "Currently, the industry is passing through a phase where costs broadly exceed earnings and the challenge is to find ways to reverse the trend," chairman Ranjit Barthakur said in the recently held annual general meeting.

Future targets 1000 Nilgiri’s store in 3 years

ishore Biyani-led Future Group is planning a major expansion of its southern supermarket chain Nilgiri’s by launching new products in bakery and taking the store count to 1,000 in next three years. "We have a target to have at least 1,000 shops in southern India gradually in next three years," Future Group CEO Kishore Biyani said. We are also launching new products as in bakery segment, added he.

Future Group has tied up with mobile payments and commerce platform Paytm to enable Paytm users to shop for Big Bazaar merchandise on the online marketplace and get it delivered to their homes. "We have done integration with Paytm. Now we have our own wallet and Paytm also" he said. Biyani further added the group is also working towards omni channel system by integrating the offline and online mode together.

However, Kishore declined to share the number of investment by the company on Nilgiri’s, but said, "This would be done through franchise system."

"We have started some online sales in the group. We have started it some brands in fashion segment. We are adding it one by one, where a customer would order in the store and would be delivered at your home or vice versa you can also order from home and would be delivered there," he said.

"We entered dairy and bakery segment through Nilgiri’s," said Biyani, highlighting the importance of the supermarket chain in the group.

After fashion, the group has plans to roll out online sales in general merchandise and home segment and lastly in the food segment, Biyani added.

On November 21, 2014, Future Consumer Enterprises had acquired 98 per cent share of Nilgiri’s from Actis Capital and other promoters and made a fully owned subsidiary. Nilgiri’s operates stores in Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Kerala.

"We are increasing use of technology with commerce. We have increased it on payment side. This is big journey. At present, we are doing in fashion and add some more segments. We would integrate all one by one," he said.

Nilgiri’s is operating 160 stores in South India and has sales of around Rs 800 to Rs 900 crore.

Walmart to enter in Indian Chai Point Launches boxC.in food processing sector

hai Point – a venture of Mountain Trail Foods Pvt. Ltd. has announced the launch of boxC.in – a cloud-based beverage services platform which includes fully-automatic and IOT-enabled dispensers. Announcing the launch of boxC.in, Amuleek Singh, Co-founder and CEO, Chai Point said, The core purpose of the platform is to provide 100% authentic chai and filter coffee at office pantries. The cloud-based platform distinguishes itself by ensuring much higher level of transparency in both beverage qualities, billing basis and service levels. “Chai and filter coffee is fuel for all offices – these beverages are now considered as a core utility by corporates. The savvier ones see good quality beverages as a must-have employee engagement service. That said, authentic chai and filter coffee solutions are rarely available – you get compromises. What corporate also miss is an effective platform that assures a high uptime

level of beverage services and transparency on the billing basis – boxC.in is aimed to solve just that”, said Singh. The IOT-enabled dispensers are based on Chai Point’s core value of 100% pure ingredients – quality tea leaves and ground coffee, fresh milk and water. The cloud platform offers strong customer service capabilities with a CRM dashboard and a centralized command center to act on customer issues and data generated by the IOT-enabled dispensers. The command center enables Chai Point’s repair and maintenance team to deliver timely quality service as it live-monitors the dashboard getting information from its IOT-enabled dispensers.

"Walmart is showing lot of interest. Now we are hoping that they will come on their own and they will add to the growth story of this country," Food Processing Secretary A K Srivastava said during a press conference on food processing sector's achievements under 'Make in India' programme The company will join a slew of other international firms such as confectionary chain Mondelez International, chocolate maker Mars Inc, and

Beginning with the first pilot micro-hub set up in Bangalore in April 2010, Chai Point has rapidly grown to become the go-to brand for a perfectly brewed cup of chai with over 1.5 lakh cups of chai sold every day.

Australian coffee chain Di Bella to enter Delhi i Bella, an Australian coffee chain plans to invest $10 million, or about Rs 67 crore, on its expansion. It operates in 11 outlets in Mumbai and will be entering Delhi and Bengaluru next year. Di Bella's business model revolves

lobal retail major Walmart expressed interest in entering processed-food retailing after the government allowance for 100 per cent foreign direct investment (FDI) in multi-brand retail trading of food products, also through e-commerce, provided the goods are made in India, a top official said.

He said that over USD 1 billion FDI has come in food processing sector during the last two years and with the government now permitting 100 per cent foreign investment in marketing of processed food produced and manufactured in India. The country is offering fiscal incentives such as 100% income tax exemption for the first five years of operation and 25% thereafter for the next five years to food processing units. "We want to encourage foreign investment in the sector to access more funds and bring global technology into the country," said Jagdish Meena, Special Secretary, food processing ministry.

ITC files case against Britannia Industries

TC has filed a case against Britannia Industries ad aging that the biscuit market leader's NutriChoice Digestive Zero brand has copied the packaging of ITC's Sunfeast Farmlite Digestive All Good biscuit.

The petition in the Delhi High Court seeks damages for alleged infringement of trademark and goodwill, as well as a direction to withdraw the Britannia product in the current packaging. ITC's digestive biscuit packaging says in bold 'No added sugar, maida' and that it contains 'fibre', Britannia's product too says '0 per cent added sugar, maida' and contains 'high fibre'. ITC launched its digestive biscuit in May. Both products have similar prices.

around running a profitable operation. It targets achieving operational level break even from month one of operations. Rahul Leekha, Director of Electel that holds Di Bella Coffee licence for India, Middle East, Africa, European Union and the UK, and Ashish Akleker founded Electel in 2014 for holding Di Bella coffee licence. The company will also look at the Middle Eastern market subsequently through a joint venture partnership there. The company said it takes approximately Rs 1.5 crore to set up an outlet, including fitments, rent, etc.

cereal food maker Kellogg Company, that have invested in processed-food retailing over the past two financial years.

ITC claims that Britannia product, which was launched earlier this month, has similar use of yellow and blue colour on the package and used similar texts in the packaging to describe the product attributes.

Beverages & Food Processing Times

A report by Edelweiss Securities said the Britannia management believes that NutriChoice Digestive Zero is a perfect addition to its range of 'power packed' inbetween meal options that will meet the nutrition needs of a diverse set of consumers who seek a healthier way of life. In the Rs 26,000 crore biscuit markets, the digestives segment is estimated at around Rs 500 crore.

Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

NEWS

Droughts to success story of Phaltan farmers-Govind Milk

ot many brands have a glorious back-story that eventually evolves into their business philosophy. This is the story of Govind Milk & Milk products – The Rajiv Mitra (MD Govind Milk) happy makers. Many years ago, there was a drought-stricken village in Maharashtra called Phaltan. Consecutive droughts had left the farmlands arid and the farmers helpless. The farmers resorted to dairy farming to make ends meet. But the dairy market in Phaltan was dominated by middlemen which left the farmers with meagre earnings. The distraught farmers took their plea to Sanjeev Raje Naik-Nimbalkar – heir to the royal Naik-Nimbalkar family that once ruled Phaltan. He instantly took up their cause and asked the farmers to source their milk directly to him. And thus in 1995 began the happy journey of Govind Milk. It’s known that happy cows yield happy milk. So it all started at the farms, when Govind taught the free grazing practice to its farmers. Soon the cows wandered freely in open fields, breathing clean air, eating fresh & healthy fodder. Govind’s team of

veterinarians and agrospecialists researched an ingenious fodder technique called ‘Hydroponic Farming’. This technique required Sanjeev Nimbalkar minimum water Chairman Govind Milk and limited space for producing fodder and involved very low setup cost too. This nutrientrich hydroponic fodder increased the cows’ milk yield and kept them healthy. The farmers were happy because this technique freed the part of their farmland that they used to grow fodder for their cattle.

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

farmers and the face of Phaltan. It’s the chain of happiness that began at the farms and continued to the customers. And that’s what has evolved to become their brand philosophy of ‘The Happy Makers’. When asked about this unique brand philosophy, Mr. Mitra, MD of Govind Milk & Milk Products said, “I believe that when you begin a good deed with all your honesty, it travels ahead with greater intensity.

A milk revolution had begun in and around Phaltan. Govind’s team of veterinary doctors and agriculturists visited nearby villages to educate farmers regarding the various cost-effective ways to breed their cattle. Govind’s symbiotic association with cattle farmers reciprocated in every upgrade of technology or process benefiting the community at large. More and more farmers recognised these benefits and joined Govind’s cause. What started as a movement with just a few hundred dairy farmers grew manifold into a revolution of nearly 40 thousand dairy farmers.

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

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

Govind practices the best procurement and

Health Ministry partner with Skill India to train street vendors

aking a step towards making food safer, the Union Health Ministry will partner with the Skill India initiative to train dedicated personnel for food safety. This new initiative will focus on mass training programmes for small and petty food businesses like street food vendors, fruits and vegetable vendors and others in partnership with Skill India and these efforts will be sustained through corporate participation, a senior health ministry official said.

For this initiative, the health ministry has partnered with the Skill Development Ministry which pilots the Skill India Mission, the official said. The new initiative is specially aimed at nuclear families since there is nobody to pass on the wisdom to the next generation about the best practices in food and nutrition, he said. The FSSAI has already come out with a programme to train 23,000 street food vendors in Delhi. Agrawal said that all these initiatives have been developed collaboratively over the past few months along with other stakeholders and

partners. "States would be facilitated to implement them on pilot basis over the next few months and thereafter national roll out of these initiatives would be done possibly by next year," Agarwal said. Noting that food safety is an important health and economic issue, Union Health Minister J. P. Nadda said: "Provisions of safe food should become a part of ingrained culture in our country". He said the adoption of global food safety standards would boost exports of agro-products and also provide better returns to farmers for their produce.

SUBSCRIPTION FORM NAME.................................................................................... DESIGNATION ................................................. ORGANIZATION .............................................................................................................................................. ADDRESS ............................................................................................................................................................ ............................................................................................................................................................................... CITY/PO .................................................................................. PIN ................................................................... PHONE ...................................................... EMAIL ........................................................................................... 1 Year/24 Issues. Rs. 950/- (By Normal Post), For Other Countries $ 100 2 Years/48 Issues. Rs. 1500/- (By Normal Post), For Other Countries $ 190 5 Years/120Issues. Rs. 3500/- (By Normal Post), For Other Countries $ 550

At Govind we have been witnessing the same for nearly 2 decades. Now it has become a way of life for us. We’re the happy makers. And the chain of happiness is getting bigger and stronger every day.”

Nestle to add a+ in its product range

others anxious about their child's growth will now cater their needs through Nestle India new brand. Company has announced the launch of NESTLE a+ PROGROW. This is the latest addition to the Nestle a+ brand and is said to have 20% higher milk protein, specifically targeting growing children. Speaking about the product, Arvind Bhandari, General Manager-dairy, Nestle India, says, "Nestle a+ PRO-GROW addresses specific needs of protein for growing children. All mothers are anxious about their child's growth and want to make sure that their children get the best nutrition for growth. Nestle a+ PRO-GROW, which comes in two exciting flavours of vanilla and chocolate, caters to this need as it has 20% more milk protein and contains all the essential amino acids." Nestle a+ PRO-GROW comes in two packs, one litre pack for regular in-home consumption and 180ml small trial packs at competitive price points of Rs.99 and Rs.30, respectively. The product will be available across key cities in the first phase of the launch. Nestle a+ PRO-GROW is the latest addition to the Nestle a+ brand which attempts to offer nutritional benefits to specific members of the family. As of now, Nestle a+ milk range has three different offerings: Nestle a+ Nourish which is a high quality milk for the entire family; Nestle a+ Slim that has 15 times lower fat than regular milk for fitness focused adults and now Nestle a+ Pro-Grow containing 20% more milk protein for growing kids.

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Beverages & Food Processing Times

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Vol. 9, Issue 04 - September - 2016

NEWS

Britain to sugar tax soft drinks to fight with obesity

ritain will now levy companies which sell sugary soft drinks with sugar tax and invest that money in health programmes for school children, part of a long-awaited strategy to curb childhood obesity.

In opting for a sugar tax, Britain joins Belgium, France, Hungary and Mexico, all of which have imposed some form of tax on drinks with added sugar. Scandinavian countries have levied similar taxes for many years. Britain's plans will see a levy applied to drinks with total sugar content above 5 grams per 100 ml, with a higher band for even more sugary drinks. The government's health department says sugary drinks are the single biggest source of sugar for children, and they can have more than their recommended daily intake just by drinking a can of cola which contains nine teaspoons of sugar. It wants the industry to work towards a 20 per cent cut in products popular with children, with 5 per cent in the first year. Progress would be reviewed every six months by the government's health agency, Public Health England. Drinks companies were also angered by the plan which urges industry to cut sugar in products aimed at children, saying nearly a third of those aged 2 to 15 are already overweight or obese. Campaigners and health experts, however, think the plan is weak. Graham Mac Gregor, a professor of cardiovascular medicine and chairman of the Action on Sugar campaign group, said it was "an insulting response" to Britain's obesity and diabetes crisis which "will bankrupt the NHS unless something radical is done." Analyst at Euromonitor International say the focus on sugar may detract from other crucial factors in obesity. While the British Soft Drinks Association think that the levy was a "punitive tax" that would "cause thousands of job losses and yet fail to have a meaningful impact on levels of obesity." The program the government intends to launch with funds raised from the sugar levy will focus on promoting healthy diets and physical activity in schoolchildren, Public Health Minister Nicola Blackwood said.

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Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

NEWS

India in talks with Govt. wants details different countries to on packaged food boost mango export in big font

ndia is in talks with Australia and South Africa to boost export of mangoes. While some varieties of mangoes from northern India are already being exported to Australia, authorities concerned are pursued to consider other varieties as well.

Similarly for grapes exports, she said, the finalization of import risk analysis is awaited from the US. In case of Japan and Vietnam, the import risk analysis with post-harvest mitigation measures is yet to be finalised by them. The matter is being pursued through the Indian Embassies in the respective countries.

o guarantee the details on the packaged food items are more visible and readable and also wants to incorporate barcodekind of system to protect consumers from spurious products, the Government is planning to amend the 2011 commodities packaging rules.

adopt the US standard on font size. Right now, the font size of the declaration such as name, address, net commodity, date of manufacturing and retail price is less than 1 mm. The US follows 1.6 mm size but here in India the plan is to keep 1.5 mm for a pack of 200 grams/ml.

To get access into Chinese market, India has already submitted priority list for market access of five fruits and vegetables to AQSIQ, China. Out of five products submitted in the priority list, the finalization of protocol for okra is in the final stage and is pending with AQSIQ, China, she said.

A delegation from Australia had visited India in June "to verify and certify three irradiation facilities for export of irradiated mangoes from the western and southern parts of India and approval for certification of these facilities is under process. With South Africa also, the market access efforts are continuing and in case of South Korea, market access was granted in June. South Korean Quarantine Inspector had arrived in India on June 11 for on-site pre-clearance programme at VHT ( Vapour Heat Treatment) facility at Saharanpur for export of mangoes to South Korea..

The font size for a packed food item containing more than 200 grams/ml up to 500 grams/ml would be increased from 2 mm to 4 mm and for above 500 grams/ml, the font size would be doubled to 8 mm.

India's export of agri and allied products during April- February 2016 declined to Rs 1.43 lakh crore from Rs 1.68 lakh crore in the same period previous year. The primary reasons for decline are low commodity prices in the international market, shrinking of global demand, high domestic prices as compared to the international prices, which has made our exports uncompetitive, unfavorable currency rate movements as compared to the competing countries, she said. Replying to a separate question, she said in 201516 tea exports stood at 232.92 million kg, higher by 33.84 million kg as compared to 2014-15.

The Consumer Affairs Ministry has held several rounds of discussions to amend the Legal Metrology (Packaged Commodities) Rules 2011 in the interest of consumers. Even the industry and public have demanded changes to the rules. The ministry had last amended the rule in 2015. Rule 7 specifies about the font size of the declaration but most companies do not follow strictly. In smaller packs, the font size is too small for consumers to read. So govt has decided to

Besides, the ministry is considering introducing bar-code or any such mark to identify food products are made in India or other country to curb sale of fake food items in the country. That apart, the ministry is considering increasing maximum quantity of packaged food items up to 50 kg/litres from the existing 25 kg/litres. For smaller packs, consumers have to pay more but commodities like rice, Atta and others to be packed up to 50 kg/litres will be cheaper. This will bring down the cost on consumers.

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Vol. 9, Issue 04 - September - 2016

NEWS

Frigorifico Allana launches Premium Cake Margarine

rigorifico Allana Pvt Ltd., one of the fastest growing food conglomerates in India rolls out Alfa, Edible Oils & Speciality Fats which equals the best in bakery fats that India has today. Understanding the needs of today’s health conscious consumers, FAL produces a comprehensive range of high quality of oils and fats. The move is a response towards the growing customer needs and an industry concern, over the role Trans Fatty Acids are playing in the increased risk of heart ailments in the country. The newly launched product, Alfa Cake Margarine by the group is a premium specialty cake margarine which has been specifically developed for Bar cakes, Muffins & Cupcakes. Using Alfa Cake Margarine one can produce sponge cakes with fine texture, mouth watery feel and an excellent taste. It also gives a greater volume to the batter which results into more number of cakes. Alfa Cake Margarine also increases the shelf life for all types of cakes and provides a good balance of softness and good crumb colour. The Alfa Speciality Fats is for making pastries, cakes and croissants that are all purpose or can simply be used as spreads. These healthy fats are the preference of many industries, bakeries and households today. “Alfa has the vision to be among the top two packaged edible Oils & Fats companies, offering the best value to consumers and be the most preferred supplier to bakery, foodservice and industry” says Maloy Chakravorthy, GM Sales & Marketing. He further adds, “Alfa gives you a wide range of premium quality fats that cater to the food, health and technical industries in India and worldwide and making it the healthiest option available in the market”. The group is all set with a series of innovative products and will be launched in the near future in different phases. At present, FAPL and IFPL cater to the needs of end consumers and industries through strong presence across food categories like Edible oils& fats, Premium ice creams & Bakery ingredients. FAPL‘s strong R&D foundation and experience over three decades in the Oils & Fats business across the world helps it to deliver world class products that offer significant value to both consumers and Industrial customers. Edible oils & fats products are manufactured at its state of the art facility at Khopoli since year 2013.

Chicken prices to remain stable

etail prices of chicken may not see a drastic fall in August and prices will remain under pressure and to avoid losses like in the previous year, chicken producers plan to cut output by 30-35%. The demand is expected to be weak given that the period coincides with the Hindu holy month of Shravan during which many believers give up non-vegetarian food. Chicken producers and farmers had suffered huge losses last year because of over production, decline in rural consumption due to drought and subdued prices. The raw material costs of the poultry industry have increased substantially as prices of maize and soya bean increased after two consecutive droughts in India. Despite increase in production costs, the industry managed to be in profits as chicken prices stayed high. Factors like excess rains for two consecutive days in metro cities like Mumbai can also disturb the production cycle considerably. As people do not step out for purchases, demand reduces substantially.

Vol. 9, Issue 04 - September - 2016

AGRO PROCESSING NEWS

Global rice production to decrease

ccording to the U.S. Department of Agriculture’s (USDA) Economic Research Service (ERS) report the U.S. 2016-17 supply forecast was lowered slightly this month due to a smaller carry-in and a fractional reduction in the crop forecast,. Despite the downward revision, total U.S. rice supplies are forecast at a record 307.7 million cwts, up 16% from a year earlier. There were no revisions to the use side of the 2016-17 balance, with total use still projected at a record 253 million cwts, 12% above a year earlier. Projected U.S. ending stocks for 2016-17 of 54.7 million cwts are the highest since 1985-86. The U.S. season-average farm price forecasts for 2016-17 for both classes of rice were lowered this month, according to the ERS. The 2016-17 global production forecast was lowered fractionally to 481.1 million tonnes, the highest on record. According to the report, production forecasts were lowered this month for Afghanistan, Bolivia, and Bangladesh, but raised for Iran. The 2016-17 global consumption forecast was lowered 1.4 million tonnes to 478.8 million tonnes, with India accounting for most of the downward revision. The 2016-17 global ending stocks forecast was raised 6.5 million tonnes, to 113.8 million tonnes, up 2.3 million from a year earlier, the ERS said. Global rice trade in 2017 was projected at 40.6 million tonnes, up just 0.1 million tonnes from the previous forecast, but almost 2% below a year earlier and the third consecutive year of decline, the ERS said. India’s 2017 export forecast was raised while Vietnam’s was lowered. Global trading prices declined over the past month, largely due to a lack of fresh demand, according to the ERS. U.S. milled rice prices continue to fall as well.

Higher sugar prices may affect festive season

igh sugar prices are directly going to affect the confectionery items this festival season. The sugar and confectionery segment has seen tenacious inflation, with prices on an upswing due to drought in sugarcane growing regions where production has seen a massive fall, inflation in this category of the consumer basket has soared to 21.9% in July from a 0.5% in February. Candies, sauce, jam, jelly and ice cream are becoming costlier. The sugar and confectionery category, with a weight of 1.36% in the consumer price index and 3.49% in the food index, has seen the second highest inflation rate after pulses for the last six months. While they are facing cost pressure, food companies get extra room to raise their product prices at this time of the year, with festivals providing guaranteed demand. Meanwhile, the sugar industry is predicting stable prices, or even a price correction, for the sweetener, as there would be enough supplies in the local market despite an expected fall in 201617 production. But many industry people predict that as soon as the sugar crushing season will begin in midOctober, there could be a correction in the price. The sugar industry has predicted output in 201617 at about 23.3 million tonnes, compared with 25.1mt the previous year. But the food ministry expects enough sugar supplies in the market. In June, it predicted the closing stock at the end of the sugar marketing year in September at 7-7.5 mt and the estimated production next season at 23-24 mt.

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Event Calendar-2016

September 2016

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

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

Chennai

November 2016

22nd–24th International

1st-3rd Foodtech Denmark

Foodtech,

2nd-4th Worldfood Kazakastan

Mumbai

2nd-6th Indagra Food

22nd-24th Annapoorna,

Romania

Mumbai

2nd-5th Eurasia Packaging

28th- 29th Indian Icecream

Turkey

Congress & Expo Noida (Delhi

9th-12th Interfood & Drink

NCR)

Bulgaria

29th-1st Food Hospitality

14th-17th Emballage France

World,Goa

19th–22nd Agro

October 2016

Tech,chandigarh

4th-7th Tokyo Pack Japan

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

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

Moscow Russia

Decemer 2016

11th-14th China Brew &

15th-17th Drink Technology,

Beverage Sanghai

Mumbai

15th-16th Evenord Germany

30th-1st palmex Latin America

21st-23rd Cake Fest Poland

Columbia

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Asia to experience first sugar deficit in over five years

ccording to Rabobank report released recently, sugar prices have been rising since last six months and are expected to remain firm in near to medium term which exposes food & beverage (F&B) companies to high price risk. Asia is to experience first sugar deficit in over five years. Sugar production in Asia is expected to be significantly lower in the 2016-2017 sugar season, as the 2015 El Nino-induced drought pulled output down to a five-year low. India, the world’s second largest producer of sugar, will witness a fall in production by 3.7 million tonnes due to consecutive droughts in 2014-15 and 201516 and will become a net sugar importer in 201617 (sugar season which begins in October). For 2015-2016, Rabobank is forecasting that Asia will witness its first sugar deficit year in over five years with an estimated deficit of 2 million tonnes. On a global level, while Europe and Brazil are forecast to see improved production next year, Rabobank is expecting a world sugar deficit of 5.5 million tonnes in the next sugar season.

In fact, some of the Indian sugar companies and beverages and confectionery makers have discussed contractual arrangements for supply of sugar but that has begun in the last few months. Earlier, after the government liberalized the sugar release mechanism and partially decontrolled the sugar industry, this opportunity was made available but the sugar market entered a bear cycle in India and hence this contractual arrangement

didn’t pick up in a big way. This was because in a falling market sugar was available and, with prices falling, keeping positions open was considered beneficial. Despite being the largest sugar consumer, “India remains one of the fastest-growing markets for non-household sugar, with confectionery and soft drinks being the two key sectors driving consumption. However, as the largest consuming sectors, processed fruit-based products, confectionery and the traditional sweet-making industry will continue to drive absolute volume growth”. The twin impact of sustained demand and lower 2015-16 production has pulled Asian sugar inventory to historic lows. Depending on local supply-demand gap, sugar prices in the region have increased by 30-50 per cent from levels seen in calender year 2015. With subdued 2016-17 production expected and sustained growth in demand, Rabobank estimates that there is enough tailwind to support current levels till the fourth quarter of 2016, until there will be further information available on the 201617 sugar season's supply-demand balance. Further, the report said, “In India, domestic prices have risen quickly over the past six months, and if downstream users are slow to react, it could mean a ballooning in costs and a squeeze to profit margins.”

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Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Britannia Apple output to fall significantly this year launches Nutrichoice Digestive Zero

pple output this year is estimated to fall significantly due to public disorder in Jammu and Kashmir, the largest apple producing state, besides reports of crop damage in Himachal Pradesh.

ritannia Industries Ltd. expands its health portfolio with the launch of NutriChoice Digestive Zero. Digestive Zero has zero added sugar and zero maida and is high on Fibre. NutriChoice Digestive Zero is a perfect combination of ingredients for health seekers, helping them maintain a healthy and balanced lifestyle. Ali Harris Shere, VP Marketing, Britannia Industries Ltd. said, “NutriChoice is one of India’s top health brands today, leading a change in the way Indians think, feel and behave about health and healthy living. It has a deep and enduring belief that small yet smart food choices can play a significant role in enabling people to get more out of their lives every day. New product is a perfect addition to our range of ‘power packed’ inbetween meal options that will meet the nutrition needs of a diverse set of consumers who seek a healthier way of life.” Nutrichoice Digestive Zero has been made with so much detail, that most people who eat it cannot believe that it tastes so good, while it has been made with zero added sugar and zero maida. The Nutrichoice portfolio has evolved over the years with unique offerings, catering to diverse segments of the population. Britannia NutriChoice was the first to introduce Hi-Fibre biscuits to the market, the first to introduce multigrain 5 Grain biscuits, the first to introduce diabetic friendly oats biscuits and the first to introduce NutriChoice Heavens, a health biscuit in a delightful chunky cookie format. Digestive Zero will be available at Rs 25 for a 100gm pack across all markets and outlets.

The companies trading in apple and marketing branded apples are preparing for hard times due to tepid arrivals this season after record crop in 201516. The agri division of Mahindra & Mahindra, which sells branded apples, is planning to import more, while one of the largest players of apple trading Adani Agri fresh is most likely to crowd out other players even by offering high price in North India's Apple bowl.

Apple is the major horticulture crop of Himachal Pradesh and Jammu and Kashmir and damages to apple orchards largely due to irrational weather and issues in J&K are likely to result in major dent on corporate buying. Adani Agri fresh, the key player with 80% market share in organised apple market in Himachal, has been pulling all resources to procure the targeted 25,000 tonne apple. Sources in the company have

informed that the damage to the crop has been colossal in the lower and middle elevation so they are concentrating their energies to higher elevation. Prices have shot up due to supply constraints but

they are geared up to compete with both organised and unorganised players to procure the required size of crop.

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           

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   

                      

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Beverages & Food Processing Times

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Vol. 9, Issue 04 - September - 2016

NEWS

GST will increase commodity prices: J.Bajaj

ow do you look at the Indian food processing industry and its growth presently? Some of the sectors like milk products, bakery, snacks, ice creams, seafood and beverages are witnessing double digit growth, your comments? Definitely, there is going to be a huge improvement in this sector. There is a high demand for these products and there are certain issues that need to be taken care of by the government. We have also noticed that many international companies are also focusing to entering the Indian food sector. Do you think overall environment created by government by Make in India, cluster development, Startup India, etc have already started benefiting the industry or the results of these schemes are yet to be seen in food processing industry? The results are yet to be seen, but we assume that

Mondelez to purchase Cadbury biscuits license

the implementation of these projects will be there and look forward for a better prospectus that the government is faithfully doing for this sector. FDI in multi brand retail of food product is allowed in India, now, will this improve the scenario of FDI in food processing in the country? Definitely, there are pros and cons for both the aspects. Like if it is Make In India and Foreign Direct Investment but provided the manufacturing is done in India then definitely it is going to benefit the country. Minister of Food Processing Industries Harsimrat Kaur Badal has demanded to keep certain percentage mandatory for the investment in infrastructure for the foreign companies planning to invest in multi brand retail in the country. Will

this help in creating infrastructure in the food processing & supply chain sector? There is huge vacuum in this sector, as first of all we need an infrastructure for that. We really don’t have cold chain system prevailing in FDI and that is a major drawback in the food processing industry. The moment these two sectors are also tapped, the food processing industry will definitely cross the expected digits.

both, in the international community there is same uniform taxation in the country, but it is definitely going to increase the cost as per the common man is concerned. After GST, do you think the cost of the machinery for food processing & packaging will go down due to streamlining the TAX structure in the country? No. Prices will not come down and there is no possibility that the price of any commodity will decrease. This is going to hit the food industry, because food sector has got a lot of potential and demand as taxation will be high that will surely hit the consumers directly. There are always pros and cons of the industry.

GST will attract more FDI in food processing, your comments? The international community wanted a uniform taxation system in India, this is the main reason they were withholding themselves from the Indian market. It may or may not affect the common man, because once the GST is implemented, the cost of raw material to the end-consumer product is going to be exorbitantly high. There are pros and cons for

Jasvinder Bajaj (Managing Director) Punjab sind Dairy

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ondelez has announced an agreement to purchase the license for Cadburybranded cookie biscuits from Burton's Biscuit Company, subject to regulatory approval. Financial details were not disclosed. Ownership of this license would enable Mondelez to manufacture market and sell Cadbury biscuits around the world, including in North America, the UK, France, Ireland and Saudi Arabia.

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Both companies have agreed to a co-manufacturing arrangement in which Burton's factories and employees will continue producing Cadburybranded biscuits. The announcement is Mondelez's first attempted deal since Hershey rejected the company's $23 billion takeover offer in late June. Still, Mondelez hasn't slowed its global expansion, having announced last month it would be bringing its Milka chocolate brand to China, a $2.8 billion chocolate market. Chocolate and cookie biscuits have innovation and synergistic opportunities Mondelez is now better positioned to explore worldwide.

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The Cadbury license could help Mondelez revive sales, which have been falling consistently, including a 17.7% decline in the most recent quarter and a 13.5% dip in full-year 2015 sales. Organic net revenue growth came in at 1.5% last quarter, which demonstrates continued global demand for Mondelez's products.

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Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

NEWS

Center planning for 100 new cold chains projects

amesh Abhishek, Secretary, Industrial Policy and Promotion said that government is planning to set up 100 new cold chain projects at a cost of Rs. 12,000 crore to Rs.13, 000 crore and has kicked off the process to invite investors to set up six new mega food parks, in a bid to boost farm sector incomes by establishing farm to fork linkages. Secretary further said that more than $1 billion of foreign direct investment (FDI) has come into the sector in the past two years, including some very big multinational firms such as Kellogg’s, McCain Foods and Mars International. “This does not include every investment, nor does it include the impact of the enabling infrastructure created by the food processing ministry. A lot of projects are already operational on the ground… the Rs.9, 000 crore invested in new cold storage capacity in the past two years has reduced 10 per cent of the country’s food wastage,” Abhishek said. India loses an estimated Rs.92, 000 crore a year due owing to wasted food. A Food Processing Ministry official said that expressions of interest have been invited from potential investors for six new mega food parks. Preference would be given to bidders with at least 26 per cent foreign equity in the venture in order to attract more technological knowhow in the food supply chain, he said.

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CII urges West Bengal government to provide more incentives

ndustry lobby CII on has advised the West Bengal government to provide more incentives for the food processing sector so as to rope in greater volume of investment in the state. The CII members, who interacted with state Agriculture Secretary Sanjeev Chopra, pointed out that states without rent control for cold storage can avail National Horticulture Board subsidy and during the interaction with the agriculture and food processing task force members of CII, Eastern region, Chopra said the state government was working on its organic farming policy. Policies are in place, but the main concern is the trust deficit that continues to exist between farmers and industry. It will take some time efforts to remove it," said Chopra. The industry food processing industry in Bengal needs to step up efforts to market farmers' produce .As part of West Bengal's stated policy of encouraging Farmer Produce Organisations (FPOs); the state is counting on industry and NGOs to work closely with them. Each FPO consists of at least 1,000 farmers. The government can grant a subsidy of 50 per cent on drip irrigation to an organised group of farmers. The task force is working on a white paper to be submitted to the state government for its model food processing policy, according to the statement

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Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

Beverages & Food Processing Times

Vol. 9, Issue 04 - September - 2016

EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

MARKETING EXECUTIVE Dhiraj Dubey

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Seema Shaikh

GRAPHIC DESIGNER Naved H.Kazmi

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

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