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Vol. 9, Issue 09 - February - 2017

FOOD PROCESSING NEWS

Need to set up food processing, storage facilities: Jyoti

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here is a need to set up food processing and storage facilities in the country to prevent the wastage of crops, Minister of State for Food Processing and Industries Sadhvi Niranjan Jyoti said. Approximately Rs 92,000 crore worth of crop is wasted every year. The ministry has announced various concessions for the food processing industry, including service tax exemption to cold chain packaging, among others. “Considering the importance of the industry, the BJP government formed a separate ministry as earlier it was under the Agriculture Ministry,� she added.

Jyoti further said the government has been easing FDI policy and has allowed 100 per cent FDI in marketing of food products produced and manufactured in India. She was speaking at a conference on "Food Retailing in India: Perspectives & Opportunities", organised by industry body ASSOCHAM.

Arunachal has huge potential for development of food processing

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nion Minister of State for Food Processing Sadhvi Niranjan Jyoti, , stated that with its varied agriculture, horticulture and other ethnic produces, Arunachal Pradesh has huge potential for development of food processing industries.

As the food processing industries contributes a total of 13 per cent to the national growth, Arunachal will get a boost from this industry as it could be developed through small and micro industries, explained the minister and further added that the four Mega Food Parks being set up in the North East will provide enough scope for promotion of the sector, besides job opportunities to youths.

Arunachal Pradesh Industries minister Tamiyo Taga said the Food Processing Industry was of enormous significance for socio-economic development and employment generation as 94 per cent of the state's population was dependent on agriculture as their main occupation.

"The state experiences varied agro-climatic conditions and smooth topography which enables great horticultural growth like spices, aromatic and medicinal plants, flowers and mushrooms besides, food crops," he said.

Taga said the key focus areas for agro-business in the state were high value organic horticulture crops like spices, fruits, tea, medicinal and aromatic plants, organic cultivation, bamboo, rubber and other plantation crops, floriculture, animal husbandry, dairy, fisheries and food processing.

He said the state has an investor-friendly State Industrial Policy in place which provides incentives to eligible Food Processing Units of an additional State Capital Investment Subsidy of 20 per cent up to Rs 25 lacs.

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Vol. 9, Issue 09 - February - 2017

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Vol. 9, Issue 09, February 2017,

FSSAI will label food items with large amount of salt, sugar & fat as junk food

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he Food Safety and Standards Authority of India (FSSAI) is moving towards labelling food items that contain large amounts of salt, sugar and fat as junk food. FSSAI is considering this based on the Indian diet chart or recommended daily intake of these ingredients.

This was the result of the long-standing battle between the industry and non-governmental organisations (NGOs) and mediated by the government and the judiciary, as there were petitions in court, and draft guidelines defining such foods and prohibiting their sale in the periphery of schools were also released some time ago.

Everything you eat in a day may cause harm if taken in the amount more than required. It is true for salt, sugar or fat. Not only noodles, aerated drinks, potato chips and ice cream, but even Indian sweets, pickles, parathas, etc. would come under the category of junk food, as they are high in sugar, salt and fat.

The Industry is skeptical about this decision and stressed that instead of just going by the sugar, salt and fat content, the apex regulator should consider the processes that go into the making of such foods. For example, air fryers are among the

options available to make such food..

The major drawback is that smaller players, to which the government is giving a platform, will be affected. The major brands in the processed food category have introduced their healthy or diet variants, but for these small players it will be difficult to sustain.

Even if the labelling will not state directly that it is junk food, the regulator will come up with labelling products as high-fat, high-sugar, highsalt, and this will affect players on a wider scale.

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MoFPI plan to double FDI in food processing sector in two years

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inistry of food processing industries (MoFPI) targets to double the foreign direct investment (FDI) in the next two years. Currently FDI is estimated to be approximately $500 million and MOFPI is hoping to double it, as the government of India has permitted 100 per cent FDI in the sale of food products manufactured in India.

The ministry is hopeful that the momentum will continue after the target has been achieved, and a billion dollars will be pumped into the food processing sector every year.

The signs are already visible, as sources in MoFPI confirmed that food e-tailers such as Big Basket, Grofers and Amazon had sent proposals to the government for FDI in online food retails. However, the ministry was yet to achieve policy-related clarity.

FSSAI has issued draft guidelines stating that benefits of balanced, fresh and traditional food cannot be replaced, and schools should not promote foods high in fat, salt and sugar. They added that children are not the best judge of their food choices.

The sale of foods high in fat, salt and sugar such as sugar-sweetened beverages, chips, readyto-eat noodles, pizzas, burgers, fried foods and confectionery items will be restricted in and near schools, and the advertisement and promotion of such foods targeted at children will be regulated.

The investors have demanded that the policy related to the sale of home and personal care products manufactured in India be opened with that of food products, as the international model permitted the sale of both food and home and personal care, and was thus more viable.

However, how the government will go ahead with such a situation remains a question.

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Vol. 9, Issue 09 - February - 2017

BEVERAGE NEWS

Shehnaz Gill appointed as Tamil Nadu retailer association Franchise Head, Coca-Cola India plan to boycott Pepsi and Coca-Cola from March 1

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hough PepsiCo's global chief, Indra Nooyi, hails from Tamil Nadu, but retailer association in Tamil Nadu is planning to boycott the soft drink products of Pepsi and Coca-Cola from March 1, giving the reason that their products are not good for health and these companies are using water resources in Tamil Nadu but the money they make is taken out of the country.

The decision was announced by the Tamil Nadu Vanigar Sangangalin Peramaippu (Federation of Tamil Nadu Traders' Association). It claims 1.5 million retailers as members and around 6,000 traders associations.

The body says it is asking local brands to increase their production and supplies. These include Thoothukudi-based Kali Mark, which manufactures the Bovonto brand of products, Bengaluru-based Torino and Thanjavur-based RVN Drinks (777). Officials from one of these companies said they started receiving more enquiries from traders about supply.

E-mails sent to PepsiCo and Coca-Cola did not

elicit a response till the time of going to press.

Arvind Verma, secretary general, Indian Beverage Association, in which both companies are members, said they were deeply disappointed to learn of the stance taken by a trade association in Tamil Nadu to not sell products manufactured by our members and two of the largest players in the food processing industry.

He said that there was absolutely no connection between its member companies and the ongoing events in the state. Both Coca-Cola India and PepsiCo India had made a significant contribution to the Indian economy and society over the past couple of decades, he said. These companies provide employment to around 350,000 people and play a role in improving the livelihood of over half a million farmers and about four mn retailers in the country.

"The proposed call is not only against the interest of farmers, traders and retailers of the state. It also undermines the role industry can play in economic growth and development," said Verma.

CSIR to help preserve sugarcane juice for 3-5 months

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ouncil for Scientific and Industrial Research (CSIR) has come up with a technology that can help preserve sugarcane juice for 3-5 months, perhaps it could be commercially used as a beverage.India is one of the leading producers of sugarcane in the world.Sugarcane juice has low glycaemic index due to the presence of complex sugars and hence it is also good for even diabetic population. However, its consumption is limited to roadside crushers and only in a specific season, a senior CSIR scientist said.

Director of Lucknow-based CSIR-Indian Institute of Toxicology Research (IITR), Alok Dhawan said the presence of bacteria and yeast in the sugarcane juice causes quick fermentation, making it unfit to compete in the massive Indian beverage market.

It was the industry that first approached the IITR to come up with such a technology to optimise the yield. "By making sugarcane juice fit for consumption for three to five months from the date of manufacture, given its popularity to beat the heat, it is expected to become multi-crore industry, directly benefitting the farmers," Dhawan added.

Bacteria is a major culprit that leads to fermentation of sugarcane juice when it is extracted."We treat

the sugarcane with very light electricity current and this helps in killing the bacteria. The longterm plan is to make it run on solar so it becomes cost-effective," he added.

Dhawan said in comparison to other beverages sugarcane juice is loaded with abundant carbohydrates, proteins and minerals like calcium, phosphorus, iron, zinc, and potassium, and vitamins A, B-complex, and C. The nutrients of this juice strengthen liver, which is useful during jaundice. Unlike other sweet drinks, which hurt teeth, sugarcane contains a host of minerals such as calcium and phosphorus, which help build your teeth enamel.

Apart from IITR, six other laboratories of CSIR have come together to work in a mission mode in three focus areas, namely milk and beverages, edible oils and food storage. Director General, CSIR, Girish Sahni said “Scientists from different disciplines, for example, physics, chemistry, economics, psychology, biology, don't often get the opportunity to mingle and put their collective wisdom together. This exercise is a classic example where brains from different streams have come together to make this a mission.”

Manpasand Beverages to double production capacity in 12-18 months

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8 months. The company is setting up four plants in Sri City, Vadodara, Varanasi and in eastern India, each having a production capacity of 50,000 cases per day, it said in a statement.

"Land has been acquired and construction has started at 3 of the new plants which located at Sri City in Andhra Pradesh, Varanasi in Uttar Pradesh and Vadodara in Gujarat. Manpasand Beverages is in the process of finalising the location for the fourth plant in eastern India," it added. The four new plants would have a total production capacity of 2 lakh cases per day as against its current production capacity of 1.7 lakh cases per day.

Chairman and Managing Director of Manpasand Beverages Dhirendra Singh said that, "The fruit juice market across India has a huge potential for growth and is still considerably untapped. To meet the continual demand for our existing brands

Mango Sip and Fruits Up and to introduce more new brands in futures, we are setting up four new manufacturing units to cover the key markets of India. With the Rs. 500 crore raised through a qualified institutional placement (QIP) issue recently, we are well placed to fully fund these four new plants. Also, as we are close to debt free, we can resort to debt funding as and when required in future," he added.

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oca-Cola India announced a new organisational structure, appointing Shehnaz Gill as Franchise Head ahead of implementation of GST that will convert the country into a single national market. A 12-year veteran of the Coca-Cola system, Gill will take over the newly created role of Senior Vice-President Operations for India, the company said in a statement. “He will serve as the Franchise Head for all the 14 bottlers operating in India and will report to Venkatesh Kini, President, Coca-Cola India and South West Asia,” it added.

Coca-Cola India operates with 14 bottlers of parent The Coca-Cola Company in India, one of which is a company owned bottling entity Hindustan Coca-Cola Beverages Pvt Ltd. Kini said, “Under the new operating structure effective January 2017, the franchise management function of CocaCola India has been organised for geographical synergies instead of bottling territories.” He further added, “Now that we have built a solid foundation for our business over the last two decades, we are ready to embrace India as one national market with

common commercial metrics, marketing calendars and market execution standards.”

This will drive productivity, reduce duplication, leverage technology, enable digitisation and capitalise on the company’s distribution scale. The new structure also enables the company’s business to be a growth engine for Coca-Cola Company by capitalising on emerging opportunities like e-commerce, modern trade, new beverages and digitisation, while continuing to build on its wide reach in traditional trade, the statement said.

Gill re-joins Coca-Cola India system after serving as Vice President and General Manager, Upstate New York and Pennsylvania for Coca-Cola Refreshments. The company also named six region directors who will assist Gill in the operations.

These include Ravinder Singh for North; Ashish Jain, Delhi-NCR; Alka Shukla, Uttar Pradesh; Arpita Maitra, East; Alok Kohli, Central and West; Vikas Sunkad, South.

The new structure is only applicable to Coca-Cola India and the operating structure Hindustan CocaCola Beverages Pvt Ltd (HCCB) remains intact.

HCCB will continue to operate through its five Zonal Vice Presidents and Executive Director, Operations.

Hindustan Coca-Cola invest Rs 1,000 crore to set up two plants

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industan Coca-Cola Beverages (HCCBL), the bottling arm of Coca-Cola in India, is setting up two greenfield plants at Ahmedabad and Nellore with an investment of Rs 1,000 crore and currently operates 26 bottling plants and covers about 65 per cent of bottling operations for Coca-Cola in the country.

The greenfield plants would house multiple bottling lines for carbonated beverages such as Coca-Cola, Sprite, Fanta, Thums Up and Limca, juices and juice-based drinks like Minute Maid and Maaza, packaged water, as well as Kinley soda.

HCCBL Chairman and Chief Executive Officer T Krishnakumar said, between the two plants, over the next three years the investment would be at least Rs 1,000 crore. The two plants would add 4-5 per cent of our capacity and the company

will invest Rs 750 crore to set up a plant at Hoshangabad, Madhya Pradesh. It recently laid the foundation stone for the 110-acre plant which is likely to be commissioned by 2018.

Krishnakumar, however, said it would be difficult to estimate the capacity addition from the Madhya Pradesh plant at present.

In 2012, the Atlanta-based beverages major CocaCola announced investment of $5 billion along with its partners in India by 2020 on various activities, including setting up of new bottling plants.

Last year, HCCBL had suspended manufacturing at a few of its plants. Krishnakumar said the closure or opening of new plants is to establish a supply chain that meets the demand from consumers.

Hindustan Coca-Cola collaborates with SBI for online transactions

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industan Coca-Cola Beverages, the bottling arm of CocaCola in India tied up with State Bank of India to enable its over 2.6 million retailers and 5000 distributors to conduct business transactions digitally.

The bank will initiate the retailers in the digitisation process with its digital payment options like Buddy P2P, Buddy Merchant, App, SBI Pay. SBI Chairperson Arundhati Bhattacharya said, “We would train the retailers not only in our product but also about the loans that they could possible access. I am sure we would be able to get these people who are today dealing in cash to the digital payment.” Retailers would be given loans based on their actual turnover.

Beverages & Food Processing Times

Hindustan Coca-Cola Beverages Chairman and Chief Executive Officer, and Bottling Investments Group Regional Director for South Asia T Krishnakumar said, “While all of our payment to suppliers and more than 90 per cent of our collections from our partners are digitised, we propose to extend this facility to every retailer in the marketplace.”

He said the digital payment solutions in business transactions will help further strengthen the company’s retail chain ecosystem covering over 2.6 million retailers and 5,000 distributors and will substantially reduce the dependence on cash.

The process will be rolled out from February 1 onwards in a phased manner, Krishnakumar added.

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Vol. 9, Issue 09 - February - 2017

FOOD SAFETY NEWS

CIFT acknowledged as national Massive adulterated food scandal has been uncovered in China level referral laboratory

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hrough a government of India notification, Central Institute of Fisheries Technology (CIFT) under the Indian Council of Agricultural Research (ICAR) has been notified as a national level referral food laboratory. The mandate of the institute is notified as for the whole of India and the scope of testing includes physio-chemical analysis, bacteriological tests, detection of viruses, bacterial toxins, and antibacterial substances, other microbiological tests, and analysis of pesticide residue and heavy metals in fish and fishery products, said a press release.

A major directive of the referral laboratory is dispute resolution whenever there is variance in the test reports of two laboratories. As per the Food Safety Act, the designated officer can send the sample to the referral laboratory for opinion against any appeal on the report submitted by the food analyst. The referral laboratory’s decision will be considered final in cases where opinion is sought for settling a dispute or when samples are

submitted through the legal route.

The referral laboratory has many other functions which include analysis of samples of food sent by any officer or authority authorised by the Food Safety and Standards Authority of India for the purpose and submission of certificates of analysis to the authorities concerned; examination in collaboration with laboratories of food analysts in various States and such other laboratories and institutions which the food authority may approve on its behalf; investigation for the purpose of fixing the standard of any article of fish and fishery product.

CIFT Director C.N. Ravishankar said that technologies developed by the institute had played a pivotal role in modernising the harvest and postharvest sectors of fishery in India, making the country a major exporter of processed fish and fish products.

Govt. should formulate ‘comprehensive food safety policy’ to increase farm produce supply

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he Union Government should evolve a ‘comprehensive food safety policy,’ with integration of international concepts and guidelines to increase farm produce supply for food processing sector to 30 per cent in medium term from current level of about 10 per cent, says an ASSOCHAM-TARI joint study. ASSOCHAM Secretary-General S Rawat and Director TARI Kshama Kaushik jointly released the findings of the study titled ‘Food processing industry: Contributing to Make in India,’ conducted by ASSOCHAM and Thought Arbitrage Research Institute (TARI). There should be a policy wherein farmers’ interests are secured in case of sudden fall in prices of their produce. The government should take sufficient measures to safeguard the interests of farmers in the country.

Madhya Pradesh is a potential leader with mainly

an agrarian economy that can help in boosting growth of India’s food processing industry. But it is major cause of concern that this sector for food and agro-based products merely attracted Rs 3,382 crore out of the total outstanding investments worth about Rs six lakh crore attracted by MP in the last financial year (2015-16) the study said. This state is India’s largest producer of soyabean (60 per cent), pulses (27 per cent). MP is the second leading state for rapeseed and mustard (11 per cent) and the third leading state in wheat production (16 per cent). Promoting the food processing industry would greatly help farmers’ income.

Stressing the multiplier effect of food processing industry, that increase in demand in this industry can lead to an upsurge in overall output of the economy by about three times. Besides, employment generation in the economy because of a rise of Re. 1 in demand of the food processing industry is roughly 17 times the employment created in industry itself, the study noted.

Food processing industry in India stands fifth in terms of production, consumption and exports and contributed over 1.6 per cent of India’s gross domestic product (GDP) in 2014-15.

FSSAI sets standards to fortify food items for social sector programmes

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FSSAI standards detail specific measurements for fortification.Through these government schemes, the government is trying to push such products to tackle problems like overweight, anaemia, stunting that are the major causes of maternal and child deaths.

for the manufacturers to follow certain fortification procedures. Fortified food items compulsorily should carry a logo approved by the FSSAI and mention the nutrient content on their pack. As per the standards, fortified atta (flour) should contain added iron, folic acid and Vitamin B12. It may also be fortified with zinc, Vitamin A, Vitamin B1, Vitamin B2, and Vitamin B6. A separate set of rules commands how 'maida' should be fortified with iron, folic acid, and Vitamin B12. Fortified rice should contain added iron, folic acid, and Vitamin B12. The level of fortification has been specified as well.

Any manufacturer that fortifies food must make sure that the level of micronutrients does not drop down to the minimum specified by the central food regulator.The standards also make it compulsory

Food regulator has also asked the manufacturers and packers of fortified food to give an undertaking on quality assurance, and submit evidence on steps taken regarding fortification.

ood Safety and Standards Authority of India has released benchmarks to fortify the nutritional quality of food items used in social sector programmes such as ICDS, PDS and midday meals, such as rice, edible oil, salt, wheat flour, and milk.

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assive adulterated food scandal has been uncovered in China that involved making fake-branded sauces and flavorings using recycled spices and industrial- grade salt harmful to human health.

The fake seasonings, sauces, stocks and powdered spices had been sold across the country under well-known domestic and international brand names including Knorr, Nestle, Lee Kum Kee and Wang Shouyi for more than a decade.

The 50 workshop involved in producing them were so well-organised that they were equipped with surveillance cameras installed outside their building and residents alerting them about any strangers visiting the areas.

About 100 million yuan worth fake products are produced each year in the little town of Duliu in the Jinghai area of Tianjin, Hong Kong-based South and some producers earn so much money making the fake goods that they drive around in Porsches.

Ingredients for the fake food seasonings included

tap water and industrial-grade salt, which is banned from human consumption because it can contain cancer-causing agents and heavy metals that damage the liver and kidneys.

The producers made the fake-branded food seasonings by buying used spices and herbs such as star anise, pepper and fennel from melon-seed processing factories in nearby Wangkou town, drying the ingredients and grinding them into powder in dilapidated low-rise buildings, the article said.

The spices were kept in disused yards at the melon seed factories with rubbish piled nearby. The workshops also produced fake branded chicken stock used a kind of colouring banned in the food industry.

The bogus products have the same packaging as their branded counterparts. The counterfeiters copied QR barcodes on genuine products and used them on their own packaging to pass the food off as real.

Junk food, sugary drinks may call for higher taxes

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n an effort to curb the growing incidence of lifestyle diseases like diabetes and obesity., the government is considering an additional fat tax on sugary beverages and packaged food high on salt and saturated fats. Thus junk food and sugarsweetened beverages may invite higher taxes in the upcoming budget.

The proposal was made by the group of secretaries on health, sanitation and urban development in a recent meeting with PM Narendra Modi to discuss budget proposals. The 11-member group has also suggested that proceeds from such higher taxes be used to increase the government's spending on health.

The proposal for higher taxes on such products has been in the pipeline since April last year.

The government had also constituted an interministerial committee headed by the health secretary to deliberate on the proposal to impose stringent measures including higher taxes and restrictions on endorsements and advertisements of such products on TV, mainly during primetime.

Also the FSSAI is already working on mechanisms to regulate consumption of junk food. This is crucial given the growing disease burden in India.

McDonald's under Maha FDA radar over soft drink warning

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ardcastle Restaurants that runs McDonald's outlets in South and West India has been ordered by the Maharashtra Food and Drug Administration (FDA) to serve soft-drinks only with warning labels. In the order issued

by FDA, it said Hardcastle Restaurants should put the “contains caffeine” label on cups and glasses when serving carbonated beverages at its outlets. Because there are ill-effects of caffeine on susceptible groups such as children and pregnant and lactating women.

FDA commissioner Harshdeep Kamble said, the matter pertaining to a McDonald's outlet in Kolhapur, which was under the FDA scanner last year, had been extended to all McDonald's restaurants in the state. Kamble also said the food safety regulations of 2011 were clear that products containing caffeine should be declared irrespective of whether the container was sealed or not.

Sometime back Hardcastle Restaurants defied the notice issued by Kolhapur Food Safety Officer BD Mule in August, saying he had exceeded his authority by asking the company to display the “contains caffeine” label on softdrinks containers. A spokesperson of Hardcastle

Beverages & Food Processing Times

Restaurants said “McDonald's India adheres to all statutory requirements, and follows all applicable laws pertaining to mandatory food labelling." The company argued that it was impractical to place warning labels on all cups and glasses and that food safety standards were interpreted wrongly in this matter.

The Food Safety and Standards Authority of India (FSSAI) made it compulsory for beverage companies, including the cola majors, to disclose the quantum of caffeine on packs if the level crossed 145 mg per litre. The rules applicable from July, also asked companies to mention on labels that consumers should not consume more than 500 ml of caffeinated beverages per day.

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Vol. 9, Issue 09 - February - 2017

FOOD SAFETY NEWS

Food regulator seeks public comment on regulation of food fortification

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SSAI has sought public comments on draft standards for fortification of seven food items - salt, oil, milk, vanaspati, atta, maida and rice. Fortification is the addition of key vitamins and minerals such as iron, iodine, zinc, Vitamin A & D to staple foods such as rice, milk and salt to improve their nutritional content.

CEO of Food Safety and Standards Authority of India (FSSAI), Pawan Kumar Agarwal said "We had formulated a comprehensive regulation on food fortification. The draft guidelines were operationalised in October in public interest. Now, a gazette notification has been issued seeking public comments within 30 days." He said final guidelines would be issued after taking into consideration the public comments.

FSSAI has invited suggestions and objections from the stakeholders within a period of 30 days from the date of publication of the draft notification on 'Food Safety and Standards (Fortification of Foods) Regulations, 2016'.

The gazette notification was issued on December 23 and is uploaded on FSSAI's website as well. The guideline prescribe the standards for fortification of salt, oil, milk, vanaspati, atta, maida and rice.

"The control of micronutrient deficiencies is an essential part of the overarching effort of the Government to fight hunger and malnutrition in the country," FSSAI said. Food fortification is a simple, proven, cost effective and complementary strategy that has been used across the globe to prevent vitamin and mineral deficiencies, it added.As per this regulation, fortified food should bear the logo as prescribed. The regulations also provide for specific role of FSSAI in promotion for food fortification.

FSSAI has set standards for fortification of salt with iodine and iron; of vegetable oil and milk with Vitamin A and D; wheat flour and rice with iron, folic acid, zinc, vitamin B12, vitamin A and some other micro nutrients.

Functional foods to go through stringent regulatory scanner to enter market

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he Food Safety and Standards Authority of India (FSSAI) have come up with a gazette notification issuing benchmark standards covering as many as eight different categories of foods. In this notification the health supplements, nutraceuticals, probiotics and other functional food products will have to go through a stringent regulatory scanner and comply with specific norms hit the market.

The regulations, in line with international food safety standards, make it mandatory for food business operators to declare essential composition of their products on the packaging. This includes a detailed declaration of nutrient as well organism content in products like nutraceuticals and probiotics.

Also, FSSAI has also defined different categories and set norms for claims for each of the category.

For instance, if a "nutrient content claim" is being made in case of food products falling under health supplement categories, the individual nutrient content shall not be less than 15% of the recommended daily allowance, as per the FSSAI. Product approvals in future will be in compliance with the new regulations, an official said. The FSSAI has given a year's time to food operators to comply with the regulations, which will be effective from January 1, 2018.

The regulations assume significance with increasing number of functional foods entering the Indian market

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Vol. 9, Issue 09 - February - 2017

RETAIL NEWS

Retail to get push from rural 10mn USD raised by Milk Mantra economy with help of govt. reforms to expand operation in east India

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he retail sector will get an impetus from the spur in economic activity in rural areas on the rise in rabi crop planting. Besides, low level of inflation and the Government’s reform initiatives are likely to provide boost to the sector in 2017, said the report by Dun & Bradstreet.

In the past few years, there has been a shift in consumption pattern, with people even from small towns moving beyond necessities and consuming luxury products that were once sold only in metro cities, it noted.

Hence retailers will focus on expanding to more tier II and III cities in India. Further, given the increased competition and high operational costs (such as for land and labour) in metros and tier I cities, the tier II and tier III cities could be a better choice for many organised retailers, it said.

The report said the GST implementation is expected to make movement of goods less

cumbersome for retailers, including lower cost of logistics, and distribution due to reduced paperwork. Further, the implementation of GST, tax on services will be available for set off against tax on goods. The retail sector was adversely impacted post- demonetisation, given the shortterm fall in consumption demand consequent to the lack of liquidity. Small traders were badly affected than the organised retailers due to their significant cash dependence, it said.

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disha-based dairy firm Milk Mantra has raised USD 10 million in the latest round of funding led by SBI-backed Neev Fund, along with existing investors Eight Roads Ventures and Aavishkaar. The fund would be utilised for the company's growth plans which includes expanding production capacity through setting up of new plants and acquisitions. The company expects its turnover to increase at Rs 170-80 crore in this fiscal from about Rs 125 crore during 2015-16.

The unorganised segment is expected to witness increased usage of credit/debit cards and e-wallets in the coming months, owing to the demonetisation move. Online retailing segment has even witnessed significant growth in the past few years and is expected to maintain its growth momentum in 2017, the report noted. While the e-retailing segment is competing with the traditional brickand-mortar stores to increase its market share, it is also faced with certain challenges such as rising logistic, supply chain costs which needs to be addressed.

Regulatory reforms are also expected to fuel growth of the retail sector. In 2016, the Government allowed FDI up to 51 per cent in multi-brand retail while it removed cap on single brand retail. The Centre introduced Model Shops and Establishments Bill 2016, and one of the provisions of this bill allows retailers to operate 24-hour which is expected to provide a boost to the retail market, especially in the metros.

Milk Mantra Dairy's founder, M.D and CEO Srikumar Misra said “It's part of larger funding as per the company's growth plans. We want to become a leading dairy firm of eastern India. In the first phase, we have raised USD 10 million. With this round of funding, the company has raised about Rs 165-170 crore.

He added that the company is focusing on four states - Odisha, Jharkhand, West Bengal and Chhattisgarh for expansion of its business. It

is also focusing on product innovations. "We have two dairy plants in Odisha with processing capacity of 3.5 lakh litres per day." The company manufactures various dairy products at third-party facility in Kolkata.

Regarding acquisition, Misra said that "We are in active discussion. It will take 3-6 months in this process". Milk Mantra has successfully raised capital from reputed investors - Aavishkaar backed the company in 2012, followed by Eight Roads in 2014 and now Neev Fund in 2016. As a part of this round, Ambalika Banerjee from Neev Fund and Dhyanesh Shah from Eight Roads will join the board of Milk Mantra, in addition to existing directors Noshir Colah from Aavishkaar and Kabir Narang from Eight Roads, and Independent Director Suresh Senapaty, Ex-CFO Wipro.

"Getting a committed investor like Neev along with the continued support of Eight Roads and Aavishkaar endorses Milk Mantra's growth potential and strategy of focused functional innovation in creating an exciting brand whilst building our milk sourcing network. With this Series-D raise, the company is well poised to expand further in its core markets," Misra said.

The company procures milk from a network of more than 43,000 farmers covering more than 800 villages. Apart from fresh milk, the company produces a range of dairy products including probiotic dahi, paneer, mishti dahi, lassi, curcumin-based milk-shakes etc under the 'Milky Moo' brand.

Kwality in association with Bank of Baroda for Rs 4000 VED intend to set up National crore loan to farmers Dairy Research Institute

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airy firm Kwality Ltd said it has signed an agreement with Bank of Baroda for providing Rs. 4,000 crore loans to the Kwality’s one lakh farmers from whom the company obtains milk. Kwality said it "has signed an MoU with Bank of Baroda to disburse Rs 4,000 crore of loans to its one lakh farmers in initial phase out of its established network.”

The company has a network of about 3.25 lakh across about 4,500 villages in Uttar Pradesh, Haryana and Rajasthan which are amongst the largest milk producing states of India. Kwality Ltd would cover the remaining farmers in subsequent phases in time. It said, "the funds would be available at preferential rate and shall be utilised primarily towards purchasing of milching animals, smartphone and two wheelers."

The scheme is aimed at providing financial assistance to improve socio-economic lives of farmers and steer them towards digitisation.

President and Head Business Transformation of Kwality Ltd, Nawal Sharma said, “This is a winwin situation for all the three stakeholders which are farmers, bank and company. This will help in increasing our direct sourcing of milk from farmers

and faster rolling out of high-margin value added products thereby improving the profitability.” Bank of Baroda would get a readily available customer base for the priority sector lending, adding that bank would also get operational support from the company in identification of farmers and payment management system.

Sharma said, "Farmers will get financial assistance at attractive terms with which they can create additional infrastructure leading to higher income. This will also promote digitisation among farmers." Farmers would get loans up to Rs 4 lakh at less than 9 per cent interest rates.

"It would allow us to develop a robust engine to increase our procurement directly from farmers which currently contributes 22 per cent of our total milk handling capacity of 3.4 mn litres/day." The company intends to increase direct procurement to over 50 per cent over the next 3-4 years.

Kwality plans to roll out 10-12 variants of high margin value-added products such as flavoured milk, paneer, cheese, UHT, cream in tetra packs, table-butter, yoghurts, amongst others over next 12-18 months. It has six milk processing plants in north India.

Danone to double its business in India by 2020

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anone – the French nutrition and dairy major plans to double its business in India by 2020 for which it will bring in more global brands here and has lined up ten new launches for this year. It has now launched its global flagship infant nutrition brand 'Aptamil'.

The company is also looking to leverage on its Indian manufacturing operations to export to neighboring countries such as Nepal, Bangladesh and Sri Lanka.

According to Danone’s India Managing Director

Rodrigo Lima, the current nutrition business is about 80 per cent of our overall business in India and the rest from the dairy segment. Going forward this proportion will continue. They plan to double the nutrition and dairy business between now and 2020. The focus for the company would be to enhance market share in existing categories and enter new segments.

Lima added, "We are looking at launching 10 products this year, which would include two products that we will be imported from our global portfolio."

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in Bhandara

ana Patole, Member of Parliament from Bhandara, Nanabhau Yerawar and VED delegates, Rahul Upganlawar, Secretary General, met Union Minister for Agriculture Radha Mohan Singh and briefed him about the dairy scene in the region and put forth a proposal VED for making for the establishing of a National Dairy Research Institute (NDRI) in Bhandara.

Singh said he would contemplate this proposal.

In the last 5 decades, the National Dairy Research Institute (NDRI) is the country’s foremost Dairy Research institution has provided considerable expertise in different areas of dairy production, processing, management and human resource development and their services have greatly contributed to the growth of the dairy industry and the welfare of millions of milk producers and consumers of milk and milk products.

Devendra Parekh, President, Vidarbha Economic Development council (VED) said NDRI is continuously working to develop its R&D and HRD programmes to excellently serve the nation in terms of food security, employment generation, poverty alleviation and economic prosperity.

Secretary General – VED, Rahul Upganlawar stated that VED had already told Nana Patole of the need of a National Dairy Research Institute Vidarbha, the perfect place would be Bhandara district which has good dairy business.

Establishing of the National Dairy Research Institute in Bhandara would train the local people in the know-how and updated technologies of dairy-farming which would encourage the local entrepreneurs to go into the dairy business thus increasing the milk output and create employment opportunities and help to supplement the income of the farmers. Such an institute exists now in Karnal – the original institute covers the north and another in the south, Bangalore and one in Kolkata

Beverages & Food Processing Times

to cover the east and north-east, and Anand is Gujarat also has similar institutes, but there are none to take care of entire central India. Like these NDRIs, one in Bhandara too would work in different areas of Dairy Production, Processing, Management, and Human Resource Development.

There was a need to establish the institute in central India is necessary to cater to the people of this region. VED has in mind Bhandara for this purpose as the dairy industry is somewhat good there which will be conducive to the establishing of the entire infrastructure of such an institute.

Currently, Vidarbha imports Rs. 1800-2900 crores worth of milk annually from neighbouring States like Chhattisgarh, MP, Telangana, parts of Gujarat and even western Maharashtra. With NDRI in the region, the dairy industry would start flourishing in Vidarbha.

NDRI University provides high quality education in the field of dairying, which has no parallel in Asia. The Institute offers all-inclusive courses and the students are in high demand also in non-dairying. Organisations such as medical institutions, pharmaceutical industry, finance sector, etc.

NDRI is the best in all aspects of dairy education is necessary in central India to cater to the students of this vast region. VED has been trying to promote the dairy industry wherein it held three workshops which were attended largely by people from all the districts even the far-flung ones of Vidarbha.

Since then, people have taken up dairy-farming, some entrepreneurs have initiated them while others have improved their existing businesses.

The response is very encouraging as people still visit VED to ask for help in the sector.

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Vol. 9, Issue 09 - February - 2017

NEWS

Announcing the Exponential Advancement in Dehumidification Technology

Bry-Air BrySmart® Series (BBS) Dehumidifers

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he BBS is the all new, forward looking and intelligent dehumidifiers. It is simple yet cost effective solution, for all your humidity related problems across diversified industries. It integrates trends like Industry 4.0 and ISO 50001 that help dehumidifier customers take a giant leap ahead in the quest for technology upgradation and energy conservation.

a 7 inch colour touch panel for easy operation/ control and additional features like Bacnet/Modbus communication protocol, Ethernet port, RS232 and RS485 communication ports, start/ stop access from a remote location using android devices and at the same time remote fault warning output. A special algorithm to collectively modulate rotor speed, reactivating airflow, temperature, and

The product is embedded with the patented BrySmart® and BryTherm™ technologies and can deliver upto 48% energy saving, plus an additional 20% through the customized rotor which reduces initial react energy input for equivalent performance of standard dehumidifiers.

Bry-Air, the leader in dehumidification worldwide, is a global solution provider for humidity control, moisture removal, product drying, gas phase filtration, plastics drying, conveying & blending, high temperature heat recovery and adsorption cooling. Bry-Air Dehumidifiers are designed to meet the most stringent moisture/humidity control needs and are available from compact models to very complex engineered systems.

The dehumidifier not only optimizes the specific performance but also optimizes the specific performance on a dynamic basis with constantly changing loads and environmental conditions.

The product modulates various critical components to optimize the energy consumption on a continuous basis. It uses Variable Frequency Drives (VFDs) on various motors, thyristor control for heaters and includes mobile connectivity for sensor monitoring, controlling and data logging.

The BBS dehumidifiers come in the range BBS40 (4000 CMH) to BBS250 (25000 CMH). It includes

in energy conservation through enhanced technology (on real time). The user has the option to control parameters and ensure maximum flexibility in operation with the patented BryTherm™ technology. It also has an option to incorporate predictive failure/ maintenance tool for continuously diagnosing and forecasting the component failures - Bry-Air Prognos™, as an add-on.

process bypass is installed. No top-up heater is required and is designed aesthetically for ruggedness and long life.

A Pahwa Group company, Bry-Air Asia has 3 stateof-the-art manufacturing facilities in India and fully owned subsidiaries in Malaysia, China, Switzerland, Brazil and Nigeria and an associate plant in USA, supported by a worldwide sales and service network.

The eco-friendly dehumidifier is a step forward

Packaging Quality Standard-FSSC 22000, BRC/Packaging

Beverages & Food Processing Times

Gujarat will take leadership in food processing sector: Gujarat CM

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hief Minister of Gujarat Vijay Rupani inaugurated the Khadya Khurak Exhibition-2017 at Ahmedabad in presence of Health and Family Healthcare Minister Shankar Chaudhary and Jagannath Temple Mahant Dilipdasji Maharaj.Rupani said that only Indian ancient traditional processes of catering, cuisines and food verities are the right direction of hygiene and purity against the western food. It is our specialty that the Indian women not only make delicious food but love for family and sweetness have also been involved behind making food for family.

Rupani is hopeful since Gujarat has become a best destination for investment, it will not go back in taking leadership into food processing sector.

“This Khadya Khurak Exhibition will bring change in farmers produce, dairy products and delicious food along with hygienic nutrition and make capable for competitive market.” Congratulating all for pure vegetarian food systems stalls, he said that this is the need of hour that young generation adheres to vegetarian foods. He also inspired food processing sector of the state to put it at similar place like other industries through value addition.

He gave a brief about forthcoming Vibrant Global Summit-2017 to be held during January 9 to 13, 2017 and said that various national and international dignitaries and delegations will visit to experience our hospitality. Rupani launched Food of India website and released Khadya Khurak-2017 informative book. Principal Secretary of health department Pankaj Kumar and Food & Drug Commissioner Hemant Koshiya also graced the occasion.

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Vol. 9, Issue 09 - February - 2017

PACKAGING NEWS

Glass manufacturers ask for an increase of glass use in packaging This kind of incentive model must be in place in India so that people do not litter anywhere and the same time, it will help streamline the process of recycling the bottles," Kapur said.

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n official from manufacturers' federation said glass manufacturers wanted regulatory framework to increase use of glass in packaging and an incentive model to streamline recycling of glass containers. All India Glass Manufacturers' Federation's Secretary Vinit Kapur said “Glass is 100 per cent recyclable without any loss in quantity and quality. It is an eco-friendly material while packaging is concerned. We seek regulatory framework to increase glass in packaging.”

In the European countries, recycle rate of glass bottles is 80 per cent while in India, it is hardly 40 per cent. "In the few European countries, there is bottle bank concept. In this model, government or agencies take some deposits and refund the deposits to consumers on returning the bottles.

According to the Federation, Indian glass container market is estimated to be around $1.1 billion and by 2020, it is set to grow to $2.2 billion.

"Glass container industry is growing at about 18 per cent. Manufacturers also sought in subsidy in inputs, particularly in natural gas, which comprises 30 per cent of the cost, so that prices of glass products could be brought down, he added.

As per the federation, flat glass manufacturing capacity in India is at 5,000-6,000 tonnes per day while container glass capacity stands at 13,000 tonnes per day.

Director of Glazing Society of India, G.N. Gohul Deepak said Energy Conservation Building Code 2007 has been revised with better standard and almost 80 per cent states have notified it for implementing in their bylaws. New codes from Bureau of Indian Standard in terms of using glass in building have also been launched. "National Building Code is getting revised and the revised version will be come up soon. This will include a complete code required for glass selectivity, design, fabrication, testing and maintenance."

Unilever wants to achieve 100% recyclable plastic packaging by 2025

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nilever wants to make all its plastic packaging fully reusable, recyclable, or compostable by 2025. It is committed and will attempt to achieve this goal in before 2025. Merely 14 per cent of the plastic packaging used globally makes its way to recycling plants, whereas 40 per cent goes in landfill and a third in fragile ecosystems as per Ellen MacArthur Foundation (EMF). It is estimated that by 2050, there will be more plastic than fish in the oceans of the world. To help transform global plastic packaging material flows, Unilever has committed to renew its membership of the Ellen MacArthur Foundation for another three years, endorse and support this new plastics economy initiative.

Unilever will publish a full ‘palette’ of plastics materials used in its packaging by 2020 to help create a plastics protocol for the industry, the statement said. It will invest in providing, and then share with the industry, a technical solution to recycle multi-layered sachets, particularly for coastal areas which are prone to plastics leaking into the ocean. Unilever has already committed to reduce the weight of the packaging it uses this decade by one-third, and intensify the use of recycled plastic content in its packaging to 25 per cent by 2025 against a 2015 baseline.

CEO of Unilever, Paul Polman said “Our plastic packaging plays a critical role in making our products appealing, safe and enjoyable for our consumers. Yet if we want to continue to reap the benefits of this versatile material, we need to do

much more as an industry to help ensure that it is managed responsibly and efficiently post-consumer use.

To address the challenge of ocean plastic waste, we need to work on systemic solutions - ones which stop plastics entering our waterways in the first place. We hope these commitments will encourage others in the industry to make collective progress towards ensuring that all of our plastic packaging is fully recyclable and recycled,” Polman said in a statement.

Ellen MacArthur said, “by committing to ambitious circular economy goals for plastic packaging, Unilever is contributing to tangible system change and sends a strong signal to the entire fast-moving consumer goods industry. Combining upstream measures on design and materials with post-use strategies demonstrates the system-wide approach that is required to turn the New Plastics Economy into reality.”

Unilever's Indian subsidiary Hindustan Unilever said it implemented innovative ways to reduce the resources used for packaging by focusing on using lighter, stronger, and better materials that have a lower environmental impact in 2015. As per the FMCG major, this led to over 10,000 tonne of paper and board waste reduction and over 840 tonne of polymer waste reduction.

Uflex unveils their Aseptic Liquid Packaging brand ASEPTOTM

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ultinational flexible packaging materials and solution company Uflex said it has set up Aseptic Liquid Packaging manufacturing plant in Gujarat with an investment of Rs 580 crore that will be operational by April 2017. The company said in a release, Aseptic Liquid Packaging will be available as ASEPTOTM, the Aseptic Liquid Packaging Brand.

By laminating poly-ethylene Aseptic packages are made with paperboard and aluminium foil, ensures that food remains free from bacteria and other harmful microorganisms for a period of at least 8 months under room temperature.

Uflexs Aseptic Liquid Packaging manufacturing plant should be operational by April 2017. Uflex President and CEO, New Business Initiatives, Ashwani Sharma said, “Packaging of flavoured milk, other dairy items and liquor in Aseptic packaging material will play a key role in propelling the growth of aseptic packaging in the coming years both in India and overseas. Our total manufacturing capacity of 7 billion packs per annum will cater to 90 per cent of the domestic market demand. In APAC, the

market growth is around 7 per cent and in India the growth has been in double digits for the last 3-4 years.”

Uflex Group President R K Jain said on the investment that has gone into the upcoming aseptic packaging manufacturing plant. "The aseptic packaging manufacturing plant is coming up on 21 acres of the 72 acres of land that Uflex has bought at Sanand, Gujarat. Remaining land will cater to any future expansion of the existing business and for aseptic packaging manufacturing as the need be. The company has invested Rs 580 crore (approx. USD 85 million) for setting up the Aseptic Packaging plant and once operational, it will employ around 250 people.

"Our total investment over the next two-three years is Rs 1,500 crore in a phased manner. This already includes Rs 580 crore towards setting up the Aseptic Packaging Manufacturing plant.

The balance will be used for modernisation of manufacturing systems and processes and research and development of flexible packaging solutions using the most contemporary technology," he added.

Recycle plastic rather than banning it: Experts

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xperts in the field of packaging have stressed on the need to recycle or regulate plastic produced in the country rather than banning it to prevent environmental pollution. R R Rashmi, Special Secretary of Union Ministry of Forests and Environment present at a oneday conference held in Mumbai said that, “It is necessary that we (industry and consumers) use plastics in an environmentally sustainable manner.

Therefore, regulation of plastic waste both at producer-level and consumer-level is important.”

The conference was organised by Indian Institute of Packaging (IIP), an autonomous body under Union Ministry of Commerce and Industry. IIP Director Dr N C Saha said, “We have established a regime both for producers and consumers. There is a provision for user fees on consumer now. If you go to a shopping mall, they will not give you a carry bag unless you pay for it, the reason being that consumers should become conscious for not using it.”

“The management of the waste is important, we still are uncharted about the waste management done at municipal level. The problem is more of finance and infrastructure than of the intention.”

In ‘Swacch Bharat Mission’ under AMRUT scheme, there is a specific scheme of remediating the landfills, establishing segregation facility at the landfills, setting up incinerators to dispose of wastes so that we don’t have landfills at all, said Rashmi.

The Secretary of Environment Ministry said that

regulation is not an end in itself, rather it is meant to promote the industry. “Almost 60 per cent of the plastic produced daily in India is recycled, however, the government’s aim is to balance the remaining 40 per cent so that we can recycle almost all the plastics produced in the country.

Banning plastic is not a solution because we do not have a substitute to plastics…only regulating it will be a solution. The government is trying to regulate it, like earlier the Centre had said that 50 micron thick plastic bags should be used instead of lesser micron,” Dr. Saha said.

For example, he said the thickness of carry bags, which was earlier 20 microns, has now been regulated to 50 microns. The Centre has laid down the laws for collection, segregation, and disposal of wastes, but it is for the state governments to implement them. However, the state governments and municipal bodies alone cannot do this and it is the collective responsibility of the consumer and brand owners as well in this task, Saha stated.

“The objective of our conference is to make people aware that banning of plastics is not the solution.

Instead of banning, let us think what we can do when we do not have an alternative to plastics.

This is where the role of recycling plastics comes into play, he said. The conference was organised on a five-day International Plastics Exhibition ’10th Plastivision India 2017′ being organised

by All India Plastics Manufacturers Association (AIPMA) from January 19 to 23.

Differentiated tax in GST good for beverages sector

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everages major Coca-Cola India said it will be beneficial for the sector if the government differentiates products within new indirect tax regime based on sugar/calorie content to promote public health. The Atlantaheadquartered beverages giant said differentiated tax structure will be an opportunity for it to expand its products range in the country.

Coca-Cola India and South West Asia President Venkatesh Kini said "Our industry is in beverages business...so to me it will be beneficial to the industry as a whole if the government in order to promote public health were to differentiate products within GST based on sugar/calorie content or other things. It should be based on science/ingredients, We would be very positively inclined towards any proposal that supports

Beverages & Food Processing Times

growth of zero/low calorie products. "Kini said being the 'the largest juice player in the country' "if government policy supports range expansion by differentiating based on the content, then it will be great opportunity for us".

Kini said "That's fine. If the government or the consumers are moving towards lower sugar products, it's good for companies like us. I can't says about other companies but we have a range," .

However, in December 2015, Coca-Cola India had said it would have to shut down some of its factories in India if the government accepted a proposal to impose 40 per cent sin tax on aerated beverages as proposed by a panel headed by Arvind Subramanian, the current Chief Economic Adviser.

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Vol. 9, Issue 09 - February - 2017

Beverages & Food Processing Times

14

Vol. 9, Issue 09 - February - 2017

COVER STORY

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

Government should clear Junk food needs to get a clear definition as many are Centre has recently announced sin tax on instant food items Industry opposed to categorised all items as junk food

www.agronfoodprocessing.com

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Vol. 9, Issue 09, February 2017,

20/-

he Union Budget 2017-18 was expected to be focused at boosting consumption, and the FM has delivered what was expected. Be it the greater focus on farmers and rural development, higher investments in infrastructure and livelihood, improving connectivity with the locality and 100 per cent rural electrification. This Budget has taken some positive steps that would not just boost overall consumer confidence, but also go a long way in generating employment.

These, coupled with the skill development initiative, would not just strengthen the hands of the rural poor, but also help put more disposable income in the pockets of the rural consumer and ensure continued rural demand for branded consumer goods. The Income Tax rate cut to 5 per cent for individuals with income between Rs 2.5 lakh to Rs 5 lakh is a big positive that would put more disposable income in the pockets of the common man.

The only disappointment, I would say, was that there has been no mention, not a word on fund allocation to encourage farm mechanization, food processing and steps to curb food and fertiliser subsidies. Unfortunately, the government did not announce much to boost food processing sector except for creating separate fund for dairy sector.

The dairy processing infra fund of Rs 8,000 crore is a positive step for the sector, however, government needs to take a holistic view and develop a policy framework to support both cooperatives and private dairy companies. The fund should also be structured to provide support for entrepreneurial dairy companies in the form of cost efficient patient debt for setting up additional processing capacity and capitalising dairy supply chain infrastructure.

Drifting away from Budget, global e-commerce giant Amazon has proposed to invest about Rs 3,400 crore for online retailing of food products produced and manufactured in India and has sought government's approval for online retailing. Of course the application is being considered by the Commerce and Industry Ministry.

As per the proposal, the company will open a wholly-owned subsidiary in India to carry out the business. It will stock food products and sell online. Currently, the government permits 100 per cent FDI in the food processing sector and as per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.

Still on international company, let's talk about Uber – so with growing food market, the Francisco-based ride hailing company will soon launch its food-ordering and delivery service UberEATS in India, going up against established players such as Swiggy, FoodPanda and Zomato in India.Uber has been experimenting with hyperlocal food and grocery deliveries since 2014, utilising its large driver network to fulfill deliveries.

In India, it is expected that the company will onboard freelance delivery personnel the likes of power Swiggy, FoodPanda and other hyperlocal delivery services.

The food-tech sector in India has emerged from a state of turmoil, with several companies in the space shutting shop over the span of 18 months. High costs of customer acquisition along with heavy cash burns led the sector to see a funding drought, still large players such as Swiggy, Zomato and FoodPanda survived. But with the entry of Uber, the well-funded startup in the history of the world, into India's foodtech space, the balance could once again be upseted.

I am not sure which of their supplication is true, but a retailer association in Tamil Nadu - Tamil Nadu Vanigar Sangangalin Peramaippu (Federation of Tamil Nadu Traders' Association) says it members will boycott the soft drink products of Pepsi and Coca-Cola from March 1. The stated reasoning is that their products are not good for health and these companies are using water resources in Tamil Nadu but the money they make is taken out of the country. Irony is that that PepsiCo's global chief, Indra Nooyi, hails from Tamil Nadu.The trader association claims to have 1.5 million retailers as members and around 6,000 traders’ associations.

Increased competition from smaller players has affected the big dairies in many ways.

To counteract against this situation, Mother Dairy has planned to look beyond Delhi NCR region as it senses growth opportunity in the eastern and western areas of India.

The wholly-owned subsidiary of the National Dairy Development Board (NDDB) with sales of around Rs 7,200 crore has drawn up a strategy called `purab-paschim' to expand into new geographies, starting with Maharashtra. The dairy company has bought an old plant in Nagpur and is spending Rs10-15 crore to revamp it and is in talks with the Maharashtra government for a new plant in Bhiwandi that may require investment of around Rs 150 crore. It is also setting up milk procurement facilities in the area that is estimated to cost around Rs 30 crore.

I think the range of FSSAI line is increasing and now it has come up with a gazette notification issuing benchmark standards covering as many as eight different categories of foods. Health supplements, nutraceuticals, probiotics and other functional food products will have to go through a stringent regulatory scanner and comply with specific norms before entering the market.

In effort to end my editorial I think I circle back to the 2017 budget issue. The Budget is said to be very farmer-friendly and is expected to enhance the agriculture growth by 4.1 per cent.It does presents the best opportunity to transform the rural economy.

Hopefully this brings ‘’Achhedin” for the farmers at least!

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ho does not think of food? Every living person has natural feeling of hunger and to satiate it, they need something to eat, whether vegetarian or non-vegetarian. When your stomach is craving for food, you need to satisfy it immediately. Hence the concept of fast food evolved to take consumers in a world of pleasant,

regulating standards shouldn’t be claimed as junk food as long as those packaged foods follow regulations during manufacturing, packaging and labelling. Food habits of different areas vary as per their culture, climatic conditions, availability of food, and those foods provide different macro & micro nutrients which cannot be ignored to

appetizing, instant food items.

Indian fast food industry is increasing because of the rising consumption and changing lifestyle of the young generation. Popular Indian fast food dishes include vada pav, pani-puri and dahi vada and so on. Now many traditional food items are being adapted to suit the needs of the people. Nowa-days, even food courts and restaurants innovate the variety of food items on their menu cards. The various fast food outlets established is for the very same purpose, to serve the customers quickly.

maintain human body equilibrium.” For a healthy lifestyle of an individual, it is important that all the daily nutrition requirements are fulfilled in his or her diet, thus anything consumed in excess as per the norms set for the same is harmful to one’s body.

With the government planning to impose a huge tax on junk food category, it is bound to create some noise in the industry. Because on one side, when the food processing industry is keenly promoting the food sector, the high tax could act like a demotivating factor for the same. Junk food needs to get a clear definition as many are confused with what exactly should be considered as junk.

Chheda Specialities Foods Pvt. Ltd.- MD of Ashok Chheda said “all items cannot be categorised as junk food. My product is snacks, though it is fried but they do not have adverse effects on health.” If an individual wants to maintain healthy lifestyle, he/ she needs to get the required nutrition daily, which is only possible if a specific diet plan is followed rigorously. Partner, Mota Chips - Jigar Ajit Mota said I do not make junk foods, as I try to make all products as healthy as possible.

Every product is made up of specific number of ingredients that gives the food its taste. If it is in excess, then consumers eating are likely to face certain health issues. Director of Urmin Group of Companies, Rajendra N Majithia said the food item should be treated junk food only if the ingredients exceed the maximum limits prescribed under the laws. “Universal rule cannot be applied to all products at one time since every product has different specifications, formulations, usage, etc.

Every product contains nutritional information which is certified by the respective laboratory & claimed by the manufacturer. Therefore, if such product is nutritious in nature, claiming the same as junk food is not viable. Food products that are processed and packed as per government

Beverages & Food Processing Times

High tax will affect the food industry The increase in tax rate for food category will have an impact on the industry players. Chheda feels that it is a wrong move to impose high tax because this will crush all the SMEs segments and create a chaotic atmosphere. It will have an adverse impact on the economy, because prices will rise and there will be indirect effect on raw materials and process. Eventually this will create obstacles for the support of SMEs and MSMEs that seek growth. Specific criteria need to be set in place where in every product that meets those limits should fall in those detailed categories.

Mota said “any kind of food that is unhealthy will always be called as junk, but the government’s criteria of taxing the junk food category high is not correct. Because you cannot stop a person from eating what he feels is right. The criteria should not be that it is junk food, criteria should be that these food stuffs must be categorised under certain groups and then accordingly tax it. They should not levy a huge number but rather the amount should be reasonable and these items must be taxed, so that the government gets the right kind of revenue.”

Traditional food items cannot be categorised into junk as they have been consumed since many years by citizens of this country. Also, India is a nation with so many different cultures and traditions that you are bound to get several different cuisines that are rich in nutrition. Hence any kind of change in the tax slab affects the industry and allied segments. Mota said the economy and the people associated with this industry are affected as small traders and small manufacturers will completely be wiped off. Just like how alcohol and tobacco industry is taxed heavily but the sales keep on increasing, in a similar way the scene is the same with so-called junk food category. On one side, you are trying to bring in all the MNCs to India by giving them licenses and allowing them to prosper, then you call them junk food. You cannot categorise samosa as junk food, can’t call chole bature as junk because they have been Indian traditional snacks since years.

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Vol. 9, Issue 09 - February - 2017

COVER STORY

its standards on Junk Food: Experts confused with what exactly should be considered as junk claiming it as junk food

Majithia stressed on the aspect that there needs to be a clear and precise definition as to what all products should be considered as ‘junk food’. He said, “The most important aspect that needs to be addressed is the definition of ‘junk food’. There needs to be a justification for why a certain ingredient or products falls into the junk food category and to do this all aspects and stakeholders need to be taken under consideration. Without properly assessing product categories and consumption pattern of individuals based on regional tastes, preferences and culture implementing high taxes would have a very negative effect on not only the food industry but on the overall economy of our country.

Promoting or demotivating the industry?

The high tax that could likely be imposed on junk food can act like a demotivating factor.

The time since Modi’s government has come to power, it has keenly trying to promote the food processing industry. Mota said the government is not just demotivating but rather playing two drums together; wants to promote and on the other hand tax the sector heavily. They must tax it, because the govt. needs to get the revenue and the existing tax rates are reasonable and these rates should continue to stay as it will give them stable revenue throughout. But in the name of junk food, you cannot tax people.

Chheda said government is trying to advertise that they are providing a lot of facilities to food industry but in actual we don’t get any facilities. There are

-GLENES BOTHELO

octroi, anti-tax coming up but money is just being collected all in the name of tax and no useful benefits as such. The government must focus on both the organised and unorganised sector of the food industry.

The food processing industry is very competitive and capital intensive with lot of regulations to be followed with high customer expectations & aspirations for a safe, hygienic food. Majithia said “the government needs to focus on unorganized sector and unorganized food manufacturers who are producing and selling food products in unhygienic conditions. Rather than increasing taxes on food, it is important to regularize and strictly monitor the manufacturing, packaging, labelling, storage, and distribution norms so that the end consumer’s interest is protected.

The government needs to ensure that proper infrastructure and manpower is allotted from the grass root level to curb unethical activities that are largely practiced in our country today. If anyone in the supply chain is adopting unfair means, it has direct impact on the end consumer.”

There is one tax – GST (Goods and Service Tax) everywhere in the world. A single tax should be made in place wherein both the small and big businessperson can rise on the same platform. The small enterprises will be able to run their business more affluently. If you go in for 3-4 tax rating then that will create chaos as there will be state GST, central GST which will be even more worse for the small, medium companies.

Organic food onsumption With health-conscious individuals preferring to consume only healthy food, the concept of organic food is yet to gain prominence. A health-conscious person will maintain the diet five days of a week, but over the weekend that person forgets everything and indulges in drinks & parties. It is difficult to abide strict schedule to healthy lifestyle. In

“initiatives by government and private entities on health awareness programs that focus on nutritious diet and exercise programs in both rural and urban areas will be a huge step forward to reduce the rate of lifestyle diseases.”

regards to organic food consumption in India, Mota expressed it is all a matter of time as it will work only if there is sufficient growth of organic products in the country. “I don’t think in near future it is highly possible, because here the need of the hour is excess production in terms of volume where farmers get his produce’s worth. Organic food will always come out in very small quantum from the farmers’ perspective that will yield a certain price but will not be enough in volume for his entire year cycle. Our farmers are not big farmers, they are small farmers and even if they

Fortified foods Food fortification is the process of adding micronutrients to food. It is a purely commercial choice whether to provide extra nutrients in a food, whereas in certain places it is a public health policy which aims to reduce the ratio of people with dietary deficiencies within a population.

Diets that lack variety can be deficient in certain nutrients. Addition of micronutrients to staples and condiments can prevent large-scale deficiency diseases in these cases. Mota said “our foods are basically vitamin-rich, and due to the high

cultivate organic, it will not yield that much price, because the consumption pattern of the organic foods is not that high. It will be beneficial only if it’s done on a large and voluminous scale, because organic food has been the talking point since the last 5-7 years but the growth till date has been very minimal.”

productivity that farmer’s use and certain crop seeds that have come up, the levels of vitamins have reduced. Hence people require these supplements.

If you have a normal diet, routine environment, and consume junk food in limited quantity, that pattern gives you the required enrichment that the body requires like that of vitamin A, B, C, D, E, and everything.”

Alternative measures for a healthy lifestyle If a person overeats or indulges in consumption of food items excessively then he/she faces certain health issues. People do not know about the health benefits of several products; hence they must be aware of all beneficial points that contains.

Chheda said it will take time for common public to replace their eating habits. “They need to understand & know the difference between what is wrong and right. Main criteria should be to create awareness of all the ingredients, consumers need to be educated what is good and bad to promote the brand.”

Another factor is the bodily behaviours associated with climate change. Eating patterns is closely linked with the mind and body system. Mota is of the view that there is some certain climatic pattern that the country follows. These climatic changes affect the bodily behaviour. “As per my knowledge, the bodily behaviour has different needs at different hours. When you are perspiring too much, there should be intake of oily product because even if you drink water, that will not quench your thirst. Hence people have a lot of oily foods during summer season, then in the winters people want to consume hot and spicy food as here it is not very cold unlike the US & other parts of the world. So, there is a certain pattern that is linked with the behaviour and consumption of the people. It is very difficult to change that, because you need to fulfil the cravings that you feel at that time.”

He also added that another factor is cultural roots.

“Indians can never leave their culture unless and until you are completely modernised with the West.

The Indian culture provides you with the base, since childhood you are accustomed with that base and so it is not easy to give up on it.” Majithia said

Beverages & Food Processing Times

Majithia understands the role of fortified foods that will help maintain balanced diet and for a healthy lifestyle. “To have a balanced diet in today’s world, it has become important for our foods to have all kinds of nutrients and vitamins to stay fit. With the advancement of technology, food fortification will play a major role in maintaining a balanced and healthy diet.” Worldwide there are many foods and beverages that are fortified, whether a voluntary action by the product developers or by law. Before a product could be fortified, it should firstly be proven that the addition of this vitamin or mineral is beneficial to health, safe, and an effective method of delivery. The addition must also abide by all food and labelling regulations and support nutritional rationale.

Conclusion Junk food simply means an empty calorie food.

An empty calorie food is a high calorie or calorie rich food which lacks in micronutrients such as vitamins, minerals, or amino acids, and fiber but has high energy (calories) but the central government is preparing to impose a high tax on fortified or instant food items containing vitamin and other minerals claiming it as junk.

The government needs to focus on unorganized sector and unorganized food manufacturers who are producing and selling food products in unhygienic conditions. Rather than increasing taxes on food, it is important to regularize and strictly monitor the manufacturing, packaging, labelling, storage, and distribution norms so that the end consumer’s interest is protected.

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Vol. 9, Issue 09 - February - 2017

NEWS

DuPont Nutrition & Health reaches 100% Carrier certified sustainable palm oil emulsifiers Commercial Pledge to use certified sustainable palm oil in global emulsifier production is now fulfilled Refrigeration

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uPont Nutrition & Health has completed its switch to 100 per cent certified sustainable palm oil and palm oil derivatives used in its Global emulsifier production. The achievement is the latest milestone since the company pioneered the introduction of sustainable palm oil emulsifiers in 2009.

Following the 2009 launch of the world’s first palm oil emulsifiers from Mass Balance supply chain certified by Roundtable on Sustainable Palm Oil (RSPO), the first emulsifiers made with RSPOcertified Segregated palm oil joined the DuPont™ Danisco® range in 2011.

Furthering our commitment to Sustainability The new development means that the remainder of the company’s entire global range of palmbased emulsifiers is now based on RSPO-certified sustainable palm oil and derivatives, which promotes the production of palm oil with greater consideration of its environmental and social impacts.

Brenda Kelly, business director, DuPont Nutrition & Health explains the motivation behind this move.“At DuPont, we are committed to reducing the environmental impact from all our raw materials, operations and final products. As such, it is clearly critical that we start by obtaining our raw materials with recognized, sustainable certification.”

In addition, DuPont recently announced a strengthening of its sustainable footprint for emulsifiers by converting to woodchips at its Grindsted facility, Denmark, which is one of the world's largest emulsifier plants. The change means a reduction of 45,000 tonnes of carbon dioxide annually, equivalent to removing 20,000 average Danish cars from the road for a year.

Fulfillment of the sustainable palm oil pledge DuPont initially intended to convert all of its palm-based raw materials to certified sources by the end of 2015, but this transition was delayed by insufficient market demand and a shortage of

certain certified palm oil derivatives. RSPO Book & Claim* certificates now allow DuPont to fill the gap until conversion to physical supplies can happen.

“Through the Book & Claim system, the intention is to support the growth of sustainable palm oil production over time” Kelly says.

In the coming months and years, DuPont will continue to encourage its stakeholders in working towards replacing Book & Claim volumes with certified sustainable palm oil from physical supply chains such as Mass Balance, Segregated and Identify Preserved palm oil and derivatives. An ambitious and comprehensive sustainable palm oil sourcing policy will also be launched in 2017.

The Book & Claim supply chain system endorsed

by RSPO, enables producers and end-users to trade certificates. RSPO-certified producers are issued one certificate for every tonne of sustainable oil they produce. Find out more about RSPO certification at http://www.rspo.org/certification

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arrier Commercial Refrigeration (CCR) is a part of UTC Climate, Controls and Security, a unit of United Technologies Corp. (UTC), a leadingprovider to the aerospace and building systems industries worldwide.

UTC was ranked at 45thposition in Fortune 500 list of global corporations in 2016. Built on Dr. Willis Carrier’s invention of modern air conditioning in 1902, Carrier’s research, expertise and innovation have resulted in market leading solutions. We recognize the vital importance of maintaining a responsible balance between the comfort we create today and the world we live in tomorrow. Millions of people trust Carrier’s leadership in delivering efficient solutions.

Over the years, Carrier India has significantly contributed in promoting sustainability. Carrier is the only company in the world to be a founding member of the Green Building Councils of the U.S., Argentina, China, India, Singapore and France. In fact, Carrier was instrumental in launching the U.S. Green Building Council® (USGBC) in 1993 and was the first company in the world to join the organization.

It invests in R&D resources to advance energy efficiency, ozone layer protection and low global

warming technologies in its products. The Carrier's approach is towards sustainability and supporting customers around the world in developing strategic, energy-efficient and custom-engineered building solutions.

Carrier’s presence in India dates back to 1986, when Carrier India was established. In the year 1988, the first manufacturing facility was commissioned in Gurgaon, Haryana. Spread in an area of 19 acres, this state-of-the-art facility consists of highly automated manufacturing unit, an excellent R&D Center and an advanced Quality Clinic. Currently, refrigeration products manufactured in this facility include air cooled condensers, multi compressor racks, air cooled condensing units, evaporators, chest freezers and chest coolers.

CCR India has 18 sales & service offices and a sales & service channel partner network throughout the country, ensuring efficient solutions and quality services at customer’s doorstep.

Our project management and application engineering teams provide turnkey cold chain solutions in cold storage, food retail and chest freezer/cooler segments. Our service team drives for enhanced customer experience.

ACE (Achieving Competitive Excellence) is our proprietary operating system to ensure worldclass quality in our products and processes. With its relentless focus on increasing efficiency and reducing waste, ACE is integral to the company's performance model. The company’s facilities worldwide are using the operating system to improve quality and customer satisfaction while lowering cost.

Our comprehensive Environment, Health & Safety (EH&S) program establishes a framework and provides tools for implementing our EH&S practices into our business & culture. The Carrier Gurgaon facility holds a distinctive record of delivering over 17 million man hours without a lost work day incident, clearly citing the measures of safety followed.

Beverages & Food Processing Times

17

Vol. 9, Issue 09 - February - 2017

TRADE NEWS

Uber to soon launch service UberEATS app to take on Swiggy, Zomato in India

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ber has been experimenting with hyperlocal food and grocery deliveries since 2014, utilising its large driver network to fulfill deliveries and now in India the San Franciscobased ride hailing company. Uber will soon launch its food-ordering and delivery service UberEATS in India, going up against established players such as Swiggy, FoodPanda and Zomato in the country.

The company would soon launch its UberEATS standalone app in India, without committing on a specific timeline.

Allen Penn, Head of UberEATS, Asia Pacific, said that he was incredibly excited about bringing UberEATS to India. This is a significant investment, it spans multiple cities and regions, and it has the potential to change the food industry - with the push of a button - in one of the most vibrant food cultures in the world in a statement.

The food-tech sector in India has emerged from a state of turmoil, with several companies in the space shutting shop over the span of 18 months.

High costs of customer acquisition along with heavy cash burns led the sector to see a funding drought. While large players such as Swiggy, Zomato and FoodPanda survived, many a

questions were raised about their business models too.

With the entry of Uber, the well-funded startup in the history of the world, into India's foodtech space, the balance could once again be upseted.

Uber has shown that it is willing to invest huge amounts of money to win the Indian market in its fight with Ola, the largest cab hailing service in the country.

Uber is diverting funds which would have gone into its now defunct China business as well as a majority of the $3.5 billion it raised from Saudi Arabia's Public Investment Fund into India.

Similar to global technology giant Apple, the SF based cab hailing firm is looking at India as its last large untapped market in the world.

Homegrown rival Ola, which had taken a leaf out of Uber's book to launch its very own grocery and food delivery services, shut them in March last year after failing to attract enough users. The company claimed the services were experiments, started them to look at ways to decrease down time for its driver partners, and improve efficiency and earnings.

Joint venture between Future Consumer and Tilda Hain India

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ishore Biyani-led Future Consumer has entered into a joint venture with Tilda Hain India, part of the US' Hain Celestial Group, to manufacture and sell food products in the health and wellness space in India. $3-billion New York-based Hain Celestial, which has operations in North America and Europe will launch categories including snacks, dairy-free and plant-based beverages, straws, and infant food products under several brands from its global portfolio that includes Terra, Dream, Garden of Eating and Sensible Portions.

Chief Executive Officer of Future Group, Kishore Biyani said, “Hain Celestial is one of the most respected companies in the organic and natural segment. Together, we will be able to provide Indian consumers with products that set the standards for good taste and are healthful too.

Both companies will hold 50% of the paid-up share capital in the JV. The brands, which will have premium positioning and will be manufactured at the company's food park in Tumkur, Karnataka, and sourcing will be done from both India and overseas. The JV is part of Biyani's wider strategy

to reach Rs 20,000 crore in sales from in-house brands by 2021 and push these higher margin products outside its own 800-odd stores. While Future Group operates around 13 million square feet of retail space with an annual customer footfall of 295 million, it sells own brands to Tata StarBazaar, Metro and Spar.

Chief executive, Third Eyesight, a consultancy firm, Devanghsu Dutta said, “Future consumer has already been upping their product profile for some time and have improved their orientation towards high margin products over the years. Launching Foodhall, for instance, as a format and then that became a platform for launching a lot of premium products, new brands, international products, etc.

So, they have been doing it for a while.” Future Group has 27 brands under 65 categories, including food brands like Sunkist, Karmiq, Golden Harvest, Fresh & Pure, Premium Harvest and Tasty Treat, among others. Biyani expects Future Consumer to contribute 70 per cent to the group's FMCG sales by 2022. FCL, which counts Arisaig Partners and Verlinvest as investors, has a distribution network of 22,000 stores, including their own.

AP govt sets high hopes of investment commitment at summit in Vizag

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4.67 trillion. While 50 per cent of those MoUs worth more than Rs 2 trillion have already become operational so far, most of the remaining MoUs are likely to become operational by the next fiscal."

On the status of the MoUs that had been signed during the similar summit in Visakhapatnam last year, Jain said, "We had signed over 200 MoUs during a similar summit a year ago valued at Rs

Giving details of the new state capital being developed near Vijayawada, he said that 5,000 acres of land has already been acquired by the state in Amaravati region of Vijaywada district so far in 16 villages.

Regarding the solar energy generation in the state, he said the government was looking at generating 5,000 MW power through solar energy by 2019.

“As of now, the state is already generating 1,000 MW of solar energy, while another 1,000 MW of solar energy was likely to be added to the existing capacity by March. Thus, we are hopeful of generating 5,000 MW of solar energy within the state by 2019.”

senior state official said, Andhra Pradesh government is hopeful to get investment commitment of Rs 8 trillion through 400 memorandums of understanding during the two-day investment summit to be held in Visakhapatnam on January 27 and 28. Investment Secretary of Andhra Pradesh, Ajay Jain said "We are expecting investment commitment worth Rs 8 trillion through 400 MoUs to be reached during the Andhra Pradesh Investment summit to be held on January 27-28 in Visakhapatnam. The investments are likely to be made in several fields, like food processing, energy, infrastructure, education and tourism."

Kenya encourage Indian investor to capitalize there

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resident of Kenya, Uhuru Kenyatta, asserting that Kenya is a safe and lucrative investment destination, asked Indian businesses to invest there and use the country as a Launchpad to explore enormous African markets.

Addressing a business gathering, the Kenyan President said the country seeks to sign an agreement with the Indian government confirming and securing a place for Kenyan pulses in the Indian market for a number of years.

India announced a Rs 100 million Line of Credit to Kenya for agricultural mechanization after talks between Prime Minister Narendra Modi and the Kenyan President, during which they also decided to deepen economic cooperation, identifying expansion of bilateral trade as a priority.

Describing Kenya as a safe country and a very lucrative investment destination, Kenyatta said the two nations are working towards closer collaboration between the Bureau of Indian Standards and the Kenya Bureau of Standards.

I believe this will eliminate a lot of problems that have existed in the past and also result in greater alignment between our two countries in terms of standardization, conformity assessment, certification as well as testing.

This would lead to considerably reducing some of the non-tariff barriers that are currently impeding

trade between our two countries. I am confident that once this is done trade flows will see a significant boost.

Stating that opportunity exists for those who are willing to take risk and a chance, Kenyatta said: India is our second largest source of imports. The balance of trade is currently weighed heavily in India's favour. I would encourage Indian investors to work and cooperate closely with their Kenyan counterparts, especially those in the private sector.

He further said there is a lot of potential for Kenya to increase its exports to India and there also exists a greater potential for Indian companies to invest in Kenya to increase their exports also to the region of Eastern and Central Africa.

He said the joint business council and joint technical committee would give impetus to bilateral trade relations and enhance cooperation in fields of bilateral investment, infrastructure development, SMEs, agriculture, health, energy as well as entrepreneurship.

Kenya's position in East and Central Africa is conducive for investors to use Kenya as a launchpad to penetrate the enormous markets of Eastern, Central and Southern Africa. We are making further progress in widening this market which will ultimately provide a market of over 650 million people, Kenyatta said.

Hershey's collaborates with WOW Design for Product Launch

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ndian consumers prefer rich, superior quality experience when it comes to food and beverages because they receive such wonderful experiences on global tours.India’s health food category is also evolving to meet up the consumers’ preferences. Right from flavored milkshakes to yogurts, various products have hit the market already. To cater to the growing consumer demands, HERSHEY’S decided to launch their range of healthy flavored milkshakes.

In association with WOW Design, a strategic brand design consultancy for planning the packaging design for its newly launched range of healthy flavored milkshakes.

Firstly, WOW Design assessed the current brand boosters and the challenges for a product launch that could appeal to both mothers and the kids.

The positive points were - existing equity with the consumers in delivering rich experience on taste, flavor and mouth feel and a motivated imagery attached to the brand. The tough task ahead was to find a right balance between delight for kids and healthy goodness for mothers in a milkshake packet.

WOW Design’s Partner and Executive DirectorSaswata Das, said, “The rapid growth of the

flavored milk beverages category in India has attracted many global players like Danone and even Coca-Cola to enter this segment. Hershey’s approached us as it also intended to enter this growing segment to complement their existing premium portfolio range. We helped Hersheys’s to take on the Indian players and charge a premium for their unique positioning and fortification benefit.

Another Partner and Executive director from WOW Design Deepti Kshirsagar said, “When it comes to think of a product like packaged milkshakes which is mainly targeted towards kids, the design strategy needs to work for the dual target audience- one the consumer and second the decision maker. Coming from an aspirational yet familiar international brand like Hershey's, the trust aspect for the mothers and tastefulness for the kids could be taken care of with a prominent brand endorsement in the design. The challenge was to imbibe the healthy goodness of the product, as that becomes a primary concern for the mothers and impact decision making. We have managed to create a Pack design that talks clearly of the fortification to the mothers, leaving no doubt when it comes to picking it up from the shelves”.

Gone for $2.08 billion; McDonald's sells China operations

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ast-food giant McDonald's will sell a huge stake in its mainland China and Hong Kong franchise business to a consortium of Citic Group and the Carlyle Group for $2.08 billion, the companies said.

The companies said in a joint statement, Citic Limited, Citic Capital Holdings, Carlyle Group and McDonald's will form a company that will act as the franchisee responsible for the chain's business in mainland China and Hong Kong for 20 years.Citic and Citic Capital will have a stake of 52 per cent, Carlyle to take 28 per cent, and McDonald's shall hold 20 per cent of the new

Beverages & Food Processing Times

company.

It announced their plan to sell about 2,000 restaurants in China last year, after its sales hit rock-bottom when tensions emerged in the South China Sea that had an impact on US companies' results in the country.The business in the country also suffered a hit in 2014 after a food safety scandal involving one of its meat suppliers.

The new company will focus on growth in China's smaller, regional cities, and have plans to open more than 1,500 restaurants in the mainland and Hong Kong in the next five years.

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Vol. 9, Issue 09 - February - 2017

TRADE NEWS

Conference on use & recycle of plastics in packaging

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xperts in the field of packaging discussed the use and recycle of Plastics that accounts for 55 per cent share in the packaging industry, at a one-day conference organized by Indian Institute of Packaging (IIP) on January 21. The conference organised on a five-day International Plastics Exhibition '10th Plastivision India 2017 held by All India Plastics Manufacturers Association (AIPMA) from January 19 to 23. The conference includes a panel discussion on 'Plastics - a boon or curse,' said an IIP release.

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Director of IIP, Dr N C Saha said “The main objective of the conference was to highlight the significance of Plastics and its application in Packaging because in packaging consumption about 55 per cent packaging material are made from plastics. The conference covered the innovation taking place in the area of polymer raw materials, additives, processing machines and also end user perspective of plastic-based packaging structures.”

IIP is an autonomous body in the field of packaging under the administrative control of the Union Ministry of Commerce and Industry. The conference on 'Plastics in Packaging' addressed

by R R Rashmi, Special Secretary of Environment Ministry stressed upon the importance of Plastics in Packaging. Dr Saha said “Plastics is the most preferred material by consumers, converters and user industry because of many advantages like easy availability, light weight, recyclable, transparent and heat sealability.” Many NGOs have highlighted that plastics are blocking the drains and rivers thereby polluting the waters. But the key issue here is not plastic but its collection, segregation, and recycling in the post-consumer management, he added.

The conference is aimed to attract delegates from raw material suppliers, plastic processors in the extrusion and molding sector, additives and master batches segment and all the packaging users’ industries. The one-day meet touched upon the various aspects of plastic packaging such as 'Plastics Recycling', 'Eco-friendly Plastic Packaging Concepts,' and 'Life Cycle Analysis of Plastic Packaging Materials,' the IIP release said.

IIP is primarily engaged in training and education and R and D activities besides promoting the Indian export market by way of innovative package design and development. It also conducts various activities like testing and evaluation of packaging materials and packages, consultancy services and research & development related to packaging.

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19

Vol. 9, Issue 09 - February - 2017

RETAIL NEWS

Food retail to be worth 71,000 bn by 2025: Experts

Grofers in collaboration with Freecharge to help users go cashless

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rofers, the online grocery delivery service provider has joined hands with one of India’s leading digital payments platforms, FreeCharge, to help consumers go cashless for essential purchases. Grofers offers products across categories including groceries, food and vegetables, beauty and wellness, baby care, electronics and appliances, home and office needs among many others.

FreeCharge has been associated with retail chains like Hypercity, M K Retail, and Heritage Fresh in the past, hopes to further expand their presence in the grocery and shopping category with its association with Grofers.

Sudeep Tandon, Chief Business Officer of FreeCharge said, “Through this association we want to address the problem of present day homemakers who are constantly juggling multiple responsibilities and can’t step out for their day to

day needs shopping. FreeCharge users can now order and pay from the comfort of their home with this integration and is a great use case for the young customer base we have. We hope to scale great heights with this partnership.”

Currently present across 18 cities like Gurgaon, Mumbai, Bangalore, Kolkata, Pune, Ahmedabad, Chennai, Hyderabad, Lucknow, Surat, Chandigarh, Kanpur, Indore, Nagpur, Grofers delivers over orders on a daily basis.

Delhi, Noida, Jaipur, Agra, 20,000

Director-Marketing of Grofers, Sharad Harjai said “FreeCharge is one of the leading and widely accepted wallets in India. Integrating with FreeCharge provides our customers with a safe & quick payment option for their daily needs items. This is another step from us in giving our customers a convenient and hassle-free shopping experience.”

By 2020, LT Foods aims to double revenue

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eading basmati rice firm LT Foods Ltd is aiming to double its turnover to Rs 6,000 crore by 2020 and is looking for growth organic as well as inorganic routes to become a FMCG company. LT Foods has presence in around 65 countries with revenue of about Rs 3,000 crore last fiscal. Their two major brands 'Daawat' and 'Royal' recorded strong volume growth of about 25 per cent both in domestic and overseas markets in 2015-16.

is our biggest export market. We have become undisputed leader in American market with 45-50 per cent share in basmati trade,” adding that the company sells about 70,000 tonnes of basmati rice in US. Arora said the company has marked out strategy for growth both through organic and inorganic routes. The company is looking for brand acquisition in both India and global markets. "We are targeting to double our turnover by 2020. We have made growth. From leading basmati rice company, we want to become a FMCG company."

CEO of LT Foods Ashwani Arora said the company is a leading brand with a market share of 22-23 per cent.

LT Foods Chairman and Managing Director VK Arora said, “We expect a 8-10 per cent growth in our turnover during this fiscal. In volume terms, the growth is estimated at 20-25 per cent.”

Out of the total turnover expected this fiscal, he said about 60 per cent would be from exports. "US

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emonetization shall prove to be the driving force for the industry, as consumers and businesses are forced to shift to modern retail formats and to an environment of higher compliance. Speakers at the mega event India Food Forum 2017 were positive as to what makes the food business the most interesting business to be in, and why they feel that the best is yet to come.

There were many industry experts and players who attended the three-day mega food business event organised at Bandra Kurla Complex, Mumbai. The

LT Foods has five manufacturing units in India, and last year it had acquired branded rice business of Hindustan Unilever focused in middle-east market. It had acquired Gold Seal Indus Valley and Rozana brands. In November, LT Foods, entered a JV with KAMEDA SEIKA of Japan to manufacture and market rice based snacks in India.

Indian food industry constitutes 57 per cent of the country’s total retail business and is expected to grow 3.5 times by the year 2025, taking the total worth to Rs 71,000 billion. India is one of the largest food consumer marketplaces of the world, and all major food producing economies have huge expectations from India.

Special Advisor to the Prime Minister, Lesotho and Guinea – Bissau, Deepak Vohra, said, “Indian food is the biggest attraction for the Western world.

There is huge opportunity waiting for the food industry in the world. to Forum 2017 at BKC, here, agreed on the fact that MNCs have hugely impacted the Indian markets and consumers. The biggest description as per the experts, Indian food market has encountered, is the MNC invasion.

Apart from foreign companies, indigenous entrepreneurs and home delivery start-ups who provide world-class products at affordable prices.”

for money and time will be deciding factor as far as consumer attraction is considered over next four to five years.”

With the increase in awareness among consumers, Indian kitchens have become more technical and food more assembled rather than cooked. Young generation explore global cuisines due to exposure.

Director of Gits Foods, Sahil Gilani said “We as manufacturers expect proactive support from retail stores. They should allow innovation to encourage new ideas in food sector.”

Whereas COO of Max Hypermarket, Ponnu Subramanian, said “Retailers have to ensure revenue generation. Optimum use of shelf space is the key to maximise revenue. A sustainable business module can be the solution for the needs of both manufacturer and retailers.”

Regarding foreign food market in India, Senior Agriculture Attaché, US Consulate, Adam Branson, said, “The government of USA was in bilateral talks with government of India to explore possibilities of easing out regulations.

The existing regulations in India have kept several manufacturers from US out of India, we want to bring them also in Indian markets.” Counsellor (Agriculture and Agri-Food) and Senior Trade, Commissioner, High Commission of Canada, Parthiban Muthukumarasamy, also observed that Canada is the largest exporter of green peas and pulses to India. “There is an 80 per cent likelihood that the green peas consumed in Indian households are from Canada. We have good quality Salmon as well, which can be introduced to Indian markets.”

Today Indians are more inclined towards luxury food, rather than healthy food. With the entry of new players, ‘Home Made Foreign Food’ is also being increasingly popular. M.D of Capital Foods, Ajay Gupta said the rural market has huge potential which can do wonders, if exploited systematically.

Grocermax’s Co-founder K Radhakrishnan said that, “Future consumers, who would start earning after four years, hold the key to future business.

Their eating and cooking preferences would set the tone of the market at large.” Pizza Hut (India Subcontinent), Yum! Restaurants, MD Unnat Verma, noted, “New consumers will have altogether different needs and mobile app based services will be crucial in the times to come. Value

Walmart to add 10,000 retail Walmart India CEO: GST jobs in the US in 2017 and demonetisation to help retail sector in India

W

almart, which had announced a year ago it would close 269 under-performing stores, including 154 that employ approximately 10,000 workers, in the United States, has now announced that it will add 10,000 retail jobs in the country this year.

Walmart would expand, renovate or relocate 59 Walmart and Sam’s Club stores. Most of the 10,000 new employees will be located in stores, while some of the jobs will come from expanding or improving e-commerce services.

The expansion and remodeling of stores will

also lead to the creation of 24,000 temporary construction jobs.

The company – which has been laying off thousands of US employees and shifting its core focus to e-commerce said it would create 10,000 jobs, equal to less than 1 per cent of its US workforce, this year as part of a $6.8 billion capital spending plan announced in October.

In 2013, Walmart had committed to purchase $250 billion more in American-made, grown, assembled and sourced products by 2023. It had then estimated that it would add 1 million US jobs.

W

almart India CEO, Krish Iyer said Demonetisation, series of structural reforms and the implementation of Goods and Service Tax will propel the retail sector into the modern economy, and help attract significant foreign investment." Measures by the government like allowing 100 per cent FDI in food retail, and ease of doing business is going to benefit the entire food chain from farmers to food processing industry," he added.

Speaking of the effects of demonetisation on the company, he said it adversely affected business

Beverages & Food Processing Times

for the first few weeks, but subsequently benefited Walmart India. "Non-cash transactions account for 70 per cent of business now compared to 30 per cent pre-demonetisation," Iyer said.

He said that going forward Walmart will focus on reducing food wastage considerably, as well as increase access to affordable food, enhance nutrition and improve sustainability in its operations.

The company currently operates 21 stores across the country in cash and carry format and plans to open 15 more stores in next five years.

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Vol. 9, Issue 09 - February - 2017

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Vol. 9, Issue 09 - February - 2017

SNACKS NEWS

Can Nestle sweeten Nesquik's appeal by cutting its sugar?

A

look at Nestle's website shows the company’s ongoing commitment to make its popular sweets healthier, with a company mandate to ensure its food and beverage products are both tasty and healthy.

Nestlé has reduced sugar in Nesquik and devised a new advertising strategy without the dominating cartoon bunny. Both are part of a plan that it hopes will boost sales of the item with health-conscious parents and tech-savvy kids.

When it comes to reformulating a product, we have to carefully optimize our recipes to preserve taste while reducing public health sensitive nutrients, such as sodium and added sugars, in accordance with the criteria set by the Nestlé Nutritional Profiling System, the company said.

In 2015, the company first experimented with a reduced sugar version in the U.S. A similar launch followed in France, which cut added sugar in a serving from 10.6 grams to five grams.

By the end of 2015, the company achieved its objective of having virtually all of its children’s products meet all the NNPS criteria.

Nestle's Maggi captures 60 per cent market share

A

fter the five-month ban on Nestle India's instant noodles brand Maggi by the Food Safety and Standards Authority of India (FSSAI), the company sales were severely hit. A top company official said the company has now achieved close to 60 per cent market share. Prior to the ban in 2015, Maggi commanded a market share of around 75 per cent. Nestle India wants to consolidate its leadership position in the noodles segment and work on new products and categories for overall growth.

Nestlé will launch the product in the U.K. this spring, followed by other European countries, cutting added sugar by an additional 30% to 3.4 grams a serving.

Bikano intends to achieve Rs 1,000 crore turnover

by FY 2019

F

ast food and snacks retailer Bikano, part of Bikanervala Group, is aiming to Rs 1,000 crore turnover by fiscal 2019 as it expands product offerings and plans to open more outlets across the country. Bikanerwala Director Manish Aggarwal said, “We are looking at Rs 1,000 crore turnover by financial year of 2019 as we expand our food and snacks offerings. We are also looking to increase our retail outlet count.”

The company entered ready-to-eat segment in December 2016, reported turnover of Rs 550 crore in the previous fiscal and looking to close the current financial year with sales of Rs 650-675

crore. The company is also setting up two new plants in Greater Noida and Hyderabad for an investment of Rs 150 crore.

"We are investing Rs 150 crore for setting up these two plants. Greater Noida plant is expected to be operational by end of this calendar year while Hyderabad will be by the end of next year. These plants will significantly expand our manufacturing capacities," Aggarwal said.

At present, the company has three manufacturing plants in Greater Noida (Uttar Pradesh), Rai (Haryana) and in Delhi in the country. At present, Bikano has a network of 55 stores across the country and is looking to add up to 25 more in 3-4 years. "We plan to open 20-25 outlets in 3-4 years’ time. We will also look at entering new markets. At present, we don't have presence in South India and Maharashtra and in far east India. Our stores are both company owned and franchised," he said.

McDonald’s unveils the masala dosa burger

Y

es, it’s true. McDonald’s in India will add the ultimate desi variation to its existing breakfast menu, in an attempt to sell more morning meals. So do you fancy a masala dosaflavoured burger?

So now, along with the vegetarian and egg cheese McMuffin, waffles, and hash brown, the world’s largest fast-food chain will also serve a Masala Dosa Brioche. In other words, a burger laden with a grilled veg patty topped with molaga podi (chili powder) sauce, a flavour popular in Tamil Nadu, and anda bhurji i.e.scrambled eggs served with a bun.

McDonald’s, which first introduced Indians to its burgers two decades ago, launched its breakfast menu in India back in 2010. Six years later, the fast-food chain smells a big business opportunity.

Amit Jatia, vice-chairman of Westlife Development, which runs over 240 McDonald’s restaurants across west and south India, said, “Breakfast convenience on the go will increase as more people enter the segment. As a western quick service restaurant, we are going to grow the Indian breakfast market dramatically”.

The expanded menu will roll out across 44 restaurants, starting with Mumbai from Jan. 13. Priced between Rs30 (44 cents) and Rs135 ($2 approx.), McDonald’s will now also serve breakfast through McDelivery and takeaway kiosks. The menu will gradually be introduced pan-India.

This isn’t the first time the fast-food chain has turned to local flavours. In 1997, it added the Aloo Tikki (spicy potato patty) burger, later adding paneer (cottage-cheese) burgers and wraps. Yet, adding molaga podi to a burger is a whole different matter!

Nestle India Chairman and Managing Director Suresh Narayanan said, “We are now close to 60 per cent market share and we are at the market leadership position. The energy and drive of the organisation remains to get back to the peak level, but it is going to involve a lot of efforts, a lot of imagination and perseverance, which we are willing to do.”

In the last six months, the company has launched 35 products across categories to diversify its portfolio. He said, “We have launched 35 new products in the last six months as for Nestle renovation and innovation is a key dimension of the growth equation of the company. This will continue. This would involve not just new offerings in existing brands but also in venturing into new categories.”

In June 2015, Maggi was banned by FSSAI for allegedly containing lead beyond permissible limits, forcing Nestle India to withdraw the product from the market. Following legal battles, the popular noodles brand was back in the market in November 2015.

Parle aims for high growth rate in premium biscuit segment

B

iscuits and confectionery maker Parle Products aims to increase its market share in the premium biscuits category to around 20 per cent in 2017-18 from 15 per cent now. Parle Products Category Head Mayank Shah said, "We will be expecting decent dividends coming in from our premium range. While we are very strong in the mid-tier or popular range and the mass range, premium is one place where we have started making our mark felt. We have brands like Hide & Seek and Milano and of late we also launched their variants. Having done that, we are seeing an increase in market share in that segment. We have seen our market share going up by almost 4-5 per cent in premium segment in last one year," he added.

The premium biscuit category is estimated to be worth around Rs 5,000 crore, with a growth rate of 15-17 per cent. Shah said the company is expecting its market share to increase to 18-20 per cent in fiscal 2017-18 from 15 per cent at present.

Its premium offerings include Milano, Simply Good, Happy Happy and Hide & Seek, while the mass brands are Parle G, Parle Marie, KrackJack and Monaco, among others.

Parle will also focus on consolidating its position in the popular and mass segments. "While we would like to improve our share by focusing on premium biscuits, we would also like to consolidate our position in mid-tier and low price range," Shah said.

Parle Products has a market share of 28 per cent in the overall Rs. 36,000 crore biscuit market. The company has expanded its portfolio in the last two years by launching new products. On overall rural demand, Shah said there would be an impact of 2-3 per cent on growth in this segment due to demonetisation.

"This year, with a good monsoon, we were expecting good growth coming in from rural but with demonetisation, growth across urban and rural has taken a hit. While we are seeing recovery in urban India, rural will take a bit of more time.

While we expect rural to be the growth driver, the impact of rural growth coming in would only be seen in the next fiscal. This fiscal, we will not be able to realise the full potential of rural demand," he said. "We were expecting category growth in rural to be in double digits but after demonetisation there would be at least 2-3 per cent impact in rural growth," he added.

"From mid-November to end December, there was hardly any advertising that was done and on an average, it would have been 15-20 per cent cut in advertising because of demonetisation," Shah said, adding that the company spends 7-10 per cent of its revenue on advertising.

The Mumbai-based company is rolling out a new ad campaign for its flagship brand Parle G launched in 1939 to strengthen its position as a home-grown brand that has remained unchanged over the years.

Britannia Industries Q3 up with 4.6% consolidate net profit at Rs 220.49 crore

B

akery and dairy product maker Britannia Industries reported 4.59 per cent increase in consolidated net profit at Rs 220.49 crore for the third quarter ended December 31, 2016.

Net sales grew 6.13 per cent to Rs 2,338.08 crore during the quarter under review as against Rs 2,203.01 crore of the corresponding quarter in the previous fiscal.

Britannia Industries MD Varun Berry said, “The impact in terms of liquidity crunch was felt by our consumers and channel partners, thereby impacting our revenues with sales dropping in Nov’16 sequentially over Oct’16 by more than 10 per cent.” Britannia’s International business continued to be under pressure “due to deteriorating geopolitical situation and currency

Beverages & Food Processing Times

fluctuations in geographies like Middle East and Africa,” Berry added.

He also said that prices of key raw materials have not shown respite with inflation in Q3 in remaining more than 10 per cent. “However, our accelerated cost efficiency programme helped us mitigate it to a certain extent. We rationalised our Advertising spends as no amount of stimulus would have helped boost growth in the wake of demonetization. We also endeavoured to leverage our fixed costs to aid our operating margins,” “We are actively working on opportunities in the biscuit business, adjacent macro snacking space and are also evaluating partnership opportunities to drive profitable growth for our company.”

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Vol. 9, Issue 09 - February - 2017

NEWS

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ORTEX® F and SORTEX PolarVision™ technology take centre stage to showcase the most hygienic and accurate optical sorting solution on the market Thousands of visitors to this year’s three-day Fruit Logistica exhibition in Berlin, Germany, will have the opportunity to meet The Buhler Group’s new Segment Development Manager for Fruit & Vegetables in Europe and CIS, Stefano Bonacina and to step inside the SORTEX F - the industry’s most hygienic optical sorting platform for frozen fruit and vegetables. Available with SORTEX PolarVision™ technology, this system actively targets smaller and difficult-to-detect foreign material (FM) and enables processors to sort their produce hygienically - making it easier to comply with ever stricter safety specifications.Enthuses Stefano: “Bühler’s optical sorting portfolio, which includes the popular and respected SORTEX K and SORTEX E ranges, provides solutions for all stages of fruit and vegetable processing – from farm to freezer. The addition of the allnew SORTEX F, developed by Bühler’s in-house specialists, using current best-practice and hygienic product design, offers its most advanced hygienic technology to date, with a stainless-steel frame, sloped surfaces, hygienic conduits, and hygienic grade fixings. This unrivalled machine, with zero tolerance for product build-up, minimises the risk of contamination.”

He adds that SORTEX PolarVision™ technology, available on the SORTEX F and the SORTEX E, is a sophisticated FM detection system, capable of delivering outstanding results, across

Beverages & Food Processing Times

a wide variety of frozen produce from single products, such as peas or raspberries, to complex vegetable or fruit mixes. It uses a combination of sophisticated technologies, developed in response to industry demands for an advanced solution to tackle hazardous and problematic FM, including snails, dark and light plastics, wood, cardboard, cigarette ends, glass and stone.

Stefano, whose experience in the fruit and vegetable industry spans 29 years – 18 of those with Buhler started his career in fruit and vegetable packaging. Before stepping into his current role, he was Bühler’s Sales Manager for Italy, with responsibility and a great track record in sales of optical sorters, across various industry sectors, including fruit & vegetable processing businesses.

He also successfully managed the team of service engineers in Italy, to achieve a high level of customer satisfaction. He will be joined on the Buhler stand by regional specialists from Poland, Benelux, Austria, and the UK. Now, in his new role, Stefano is planning to build on Bühler’s leading position in the fruit and vegetable processing market, by building even stronger and closer partnerships with key accounts, while also working on forging new relationships.

He says: “I’ll be looking to recognise and understand new market trends and how Buhler can help customers capitalise on the opportunities these trends bring. It will also be important for me to build strong and trusting relationships across the sales network to drive consistent business growth.”

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Vol. 9, Issue 09 - February - 2017

NEWS

Value to the farmers and quality to the consumers

G

ovind Milk and Milk Products Pvt. Ltd.was set up by the erstwhile princely family of Naik Nimbalkars.

Sanjeev Naik Nimbalkar being acutely aware of the

needs Sanjeev Nimbalkar (Chairman Govind Milk ) of the people in Phaltan, near Pune, ensured that the growth of the company also led to the socio-economic development in the geographical area in and around the company, a radius of about 150 kilometers.

Naik Nimbalkar’s concern for the farmers’ wellbeing and the partnership approach adopted by him in the first phase of growth have contributed in a large measure to the overall development of Phaltan.

Having established the production processes which gave quality products to the consumer, Govind which was largely an input driven company started its transformation towards becoming a pan India and global brand. This transformation is being led by Rajiv Mitra the Managing Director of the company. For the first time in twenty years of its existence an external expert professional was brought in to lead the company in its next phase of growth. Mitra is passionate about making Govind a market leader in the dairy industry. The vision of the organization was and continues to be, as Rajiv Mitra says, ‘Value to the farmers and quality to the consumers.’ It is this very vision that is

providing the fodder for transformation into the next phase of growth.

The new goals for growth of the company set by Mitra are non - linear.

He envisions a larger pan India and global Rajiv Mitra (MD Govind Milk) presence and believes that the strategy for this would be to create a Govind brand to reach an increased consumer base and for instant recall. He also believes that for the success of this approach, the employees would need to develop a different mindset; a new set of competencies need to be nurtured and a culture of meritocracy has to take over. Mitra is providing the leadership for this transformation by introducing and implementing several initiatives for organizational change such as induction of right talent, implementation of technology, introduction of focused consulting,strengthening a performance oriented culture and introduction of work processes that impacts the employees and their productivity.

At Govind, the best procurement and processing systems are employed to process milk and produce milk products. A fully integrated, state-of-the-art dairy processing unit at par with International standards, with the capacity to process in excess of 10 lac liters of milk every day, is currently in use in Phaltan. The other Govind milk processing and packing units are in Turbhe (near Mumbai), Ahmednagar and Yamkanmardi (Karnataka).

Govind helps dairy farmers to source funds from financial institutions by standing guarantee to it. The wealth of knowledge developed by the research scientists and veterinarians at Govind is passed on to the dairy farmers that helps in improving quality and quantity of milk. The unique partnering model used by Govind, has benefited multiple stakeholders. The quality of life and economics of the dairy farmer has improved.

This has benefited banks as farmer is able to repay loans in time. Insurance companies stand to gain as cows are healthier and less prone to disease or death. The consumer gets better quality milk and milk products. The Dairy activities of Govind have generated substantial employment in the area of Phaltan.

Govind has launched a new brand campaign drawn on the line of a refreshed brand positioning, that is The Happy Makers. In the words of Mitra, “We as a brand spread the chain of happiness by taking responsibility of our farmers, partners and eventually our consumers. Our farmers are free and happy as we have taught them a new way of dairying and therefore a new way of living. We have introduced new techniques and processes that have made them self-reliant”.

healthy drink and eatables.

Govind Milk and Milk Products Pvt. Ltd established two decades back, with an intention to help the farmers since the Milk Federation could not provide adequate support to the dairy farmers, has emerged as a renowned, quality conscious company for milk and milk products in the state of Maharashtra and adjoining states. Govind supplies skimmed milk powder, whole milk powder, ghee to whole of the country in the retail markets and also as an ingredient to major Indian and international manufacturer of milk products.

In the recent past they won contracts to supply ghee to Tirupati Balaji temple used for preparing prasadam for the devotees.

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

A farmer is happy only when his livestock is happy and contented. Govind’s team of dedicated and qualified veterinarians who monitor the health of the cows so that they are happy and free. Happy cows produce happy and stress-free milk that ultimately reaches the consumer as happy and

Industry needs to understand the changing trends and focus on new product development Q. World has made great advancements in technology. Where does India stand in terms of technological use in the Beverages & Food industry?

Lot of expansions Manan Bajaj VP- Planning & Consulting and investements Paradigm Services Pvt.Ltd can be seen now-a-days in upgradations with technologies used and Indian promoters are visting the best places in the world to understand the new technologies and are also ready to invest in the same. That’s good but the pricing is still a good factor because they need to compete with an unorganized sector of the industry

as well. I’m hopeful for things will change soon as the industry is moving with the right vision.

Are companies ready to use modernised machinery? Is Indian Food sector using the resources & technology to the best?

Yes, we can observe the shift from conventional methods to modern machineries but still the quantum is very low. It is also observed that Indian food industry is ready to invest in machinery to some extent but the real concern begins after using machine at the right rated capacities as that would require properly trained people, proper spare part management and right maintenance, where we still need to improve.

Food industry has grown exceedingly well in the

past decade in terms of beverage procurement till the end-distribution. Please comment.

I do agree to this, that food industry has seen remarkable changes and growth in past decade as focused efforts are taken from global and big players. Supplier upgradation programs and regular verifications have also begun but it is still a long way to go in medium and small scale food industry.

What are the reasons that the food sector is receiving investments? How do you see this market in the next 5 years?

Due to the rich agricultural background, India has potential to grow their food industry but the policy changes and ease to business, things have

SUBSCRIPTION FORM NAME.................................................................................... DESIGNATION .................................................

started moving in right direction now. Indian food industry may grow by around 20-25 per cent in next 5 years, as I see.

The consumption of food products has radically changed, how is the industry going to cater to this growing demand.

Industry needs to understand the changing trends and should focus on new product development to cater the ever-changing need of consumers.

What are the drawbacks of this industry and what measures can be taken to solve these issues?

Food industry have always faced challenges of investments, right people and majorly dependence on workers as the viable way of business was manual operations. Now everyone wants to reduce this significantly by putting up semi-automatic or fully automatic plants as need and business availability commits faster ROI. Although policies are changing to make business easy but the perculation of the changes and right interpretation in the industry is very slow, need to be expedited.

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Vol. 9, Issue 09 - February - 2017

Beverages & Food Processing Times

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Vol. 9, Issue 09 - February - 2017

Law Commission proposes life imprisonment for food adulterators

T

he Law Commission of India has proposed increasing punishment of those adulterating food substances from the existing six months to life imprisonment. A detailed report on amending the Indian Penal Code (IPC) has been prepared by the commission. It has decided to increase the fines for such offenders from the current Rs 1,000 to Rs 10 lakh. The commission has also proposed amendments to Section 272 (adulteration of food and drinks) and 273 (sale of noxious food or drinks) of the IPC. The report is likely to be submitted to the government in two weeks.

The commission has laid emphasis on the amendments to food adulteration laws by states like Uttar Pradesh, Odisha and West Bengal. The three states have already made food adulteration punishable with life imprisonment. The commission in its report stresses that the Centre needs to follow the footsteps of these states and make life term the maximum punishment for adulterators throughout the country. Other than increasing the jail term and fines, the panel has also proposed compensation for victims of food adulteration. Under the proposed amendments, food adulteration has been categorised into four, with different punishments for different categories.

Last year, the government had asked the Law Commission to examine the laws on food adulteration after the Supreme Court passed an order favouring stringent punishment.

In August 2016, the apex court had said that it was high time that the Centre amends the IPC to make the punishment deterrent. A senior Law Commission official said, “The IPC came into being in 1860 when India did not have any food industry but as India got a flourishing food industry, incidents of food adulteration also increased. The laws on food adulteration became outdated with time, and therefore, amendments are required.”

NEWS

Ice Make Refrigeration Pvt. Ltd Acquires Bharat Refrigerations Pvt Ltd

I

ce Make Refrigeration Pvt Ltd and Bharat Refrigerations Pvt Ltd, announced that Ice Make Refrigeration Pvt Ltd has acquired Bharat Refrigerations Pvt Ltd business effective from December 15th 2016. “We are thrilled and energized about joining forces with Bharat Refrigerations Pvt Ltd. Bharat’s differentiated and reputed products will offer Ice Make’s Customers a range of Product options with increased value, while preserving the legacy of customer satisfaction that both companies prioritize,” said Mr. Chandrakant Patel, Ice Make’s Managing Director.

‘lives’ its core values, and because of this and its compelling vision of providing unrivaled, highly productive refrigeration products to customers, I believe that our mutual goal to anticipate, nurture and drive positive change in the refrigeration industry will be delivered through our synergy.”

Since its founding as Bharat Refrigerations in the late 80’s, Bharat Refrigeration has grown from its Chennai roots to become a widely renowned, integrated refrigeration equipment manufacturer across the South. Along the years, Bharat Refrigerations Pvt Ltd has remained a true family business and, under the leadership of its founder Mr. T. M. Venu, has achieved stature as a highly reliable and technically competent player in South India.

Ice Make’s Managing Director said “this acquisition will allow Bharat Refrigerations to continue as the leader of Refrigeration Equipments Manufacturer in the South, while leveraging Ice Make’s advanced capabilities & systems across our Refrigeration Equipment’s value chain. I believe that time has come for Ice Make to truly become one of the Strongest Players in the Refrigeration Arena that not only brings a dynamic change in commercial refrigeration market but also drive customer’s profitability through highly efficient and effective value added product line.”

Bharat Refrigerations’ Founder Mr. T.M. Venu said, “Ice Make’s support will enable Bharat Refrigerations to grow faster, introduce new product designs and models more rapidly, and expand on our history of success by reaching a broader array of customers and markets. I am excited that our employees have joined the ICE MAKE Family. Having seen how Ice Make truly

Beverages & Food Processing Times

“Apart from other core products, our latest Patent Protected Cold Plate Reefer Product Line under the flagship TRANSFREEZ, is projected to spread extensively across the Nation catering to LastMile Cold Chain requirements of customers.

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Vol. 9, Issue 09 - February - 2017

Beverages & Food Processing Times

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Vol. 9, Issue 09 - February - 2017

HEALTH NEWS

Nutrition-watch App for Indian FDA of Maharashtra has pulled foods; Health ministry initiative up McDonald’s for not carrying caffeine warning

U

nion health ministry is set to launch an App linked to an Indian food database to display for consumers the nutritional contents of food, whether street-snacks, restaurant fare, or meals cooked at home. The App will rely on the Indian Food Composition Tables-2017 released by the Hyderabad-based National Institute of Nutrition (NIN) and listing values of various nutrients in 528 foods, including cereals, legumes, fruits and vegetables, condiments and spices, fish, meat, and poultry products, among others.

Health minister Jagat Prakash Nadda inaugurated a symposium called to discuss potential applications of the food composition tables, said he has directed the NIN to develop an App that could be used by consumers. "We want to simplify this heavyweight 2kg book into an App which (consumers) could understand and use to (maintain) healthy food practices."

Senior NIN scientists said, the App will provide values of calories, carbohydrates, proteins, fats, sugar, key vitamins among other nutrition-linked parameters for various foods, is expected to be ready for release in about two months. There are similar nutrient-tracking Apps already available for use on mobile phones but the NIN scientists said, their App may be tailored to provide some additional information not available through most existing Apps.

Research, NIN's parent institution, Soumya Swaminathan said "The 2017 food composition tables will be the backbone for this App. The tables contain information not documented earlier.”

The tables, revised by the NIN after 46 years, list the values of dietary fibre, vitamins, carotenoids, minerals, starch and sugar, fatty acids, amino acids, among several other nutrients in various foods commonly used across India. The tables display how values of some nutrients may change in certain foods when cooked in different ways.

NIN scientists said, the tables for example list the values of several key nutrients, such as bonefriendly vitamin-D2 in plant products or immunityboosting phytochemicals in common Indian foods for the first time.

The App would allow consumers to determine values of these nutrients, among others in whatever food they plan to consume - whether a samosa from the street, a pizza ordered in a restaurant, or home-cooked dal and chappatis.

"We expect the food composition tables to have many applications," Swaminathan said.

Doctors could make use of the tables to prescribe the most appropriate diets to patients, food processing companies may use them to determine labels on their products, and policy-makers could use them to guide nutrition policies, she said.

Director General of the Indian Council of Medical

CLASSIFIED

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n a major crackdown on caffeinated products that are sold without a health warning, the Food and Drugs Administration of Maharashtra has pulled up McDonald’s, a fast food chain, for not following rules.

Fast food retailers have called it unfair as to target one company when restaurants, food stalls and fast food chains sell caffeinated drinks like tea and coffee in paper glasses, without warnings.

FDA officials said that all malls, multiplexes, cinema halls, restaurants and bars and fast food chains will be inspected to check if they are printing the ‘Contains caffeine’ disclaimer on beverage containers, or face suspension of their licence. Caffeine is a stimulant found in beverages such as coffee, tea and carbonated drinks. It can treat and prevent premature infant breathing disorders and is on WHO Model list of medicines, but other studies have established that high doses cause restlessness, tension, insomnia, high blood pressure, gastrointestinal disturbance and irregular heartbeat. In contrast to the claim made by food manufacturers, researchers have found that caffeine has no role as a flavouring agent in the soft drinks.

McDonald’s representatives argued that the warnings are only to be printed on beverage cans or bottles. However, as per the Food Safety and

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Standards Act, 2006, every beverage container needs to carry the disclaimer to inform consumers about the contents of the drink. But every consumer has the right to choose between caffeinated and non-caffeinated drinks and should be informed about the same and thus rejected the appeal of the fast food giants.

While McDonald officials didn’t disclose if they will add the disclaimer on their pre-mix cold drink containers, the representatives confirmed that they are following the national standards of FSS and there are no violations of any kind.

McDonald’s India adheres to all statutory requirements, and is in compliance with all applicable laws pertaining to mandatory food labelling. At McDonald’s India, the health, safety and well-being of our customers is paramount.

We have always conformed to the food safety standards and will continue to do so at all time,” said a McDonald’s spokesperson.

The FDA action hasn’t gone well with the food industry, which said that one company has been targeted. First of all, there are no specific guidelines on the containers or glasses that are used to dispense the caffeinated beverages.

FDA targeting McDonald is not nearly practical because all the restaurants, fast food chains, or even smaller hotels who sell caffeinated drinks like tea and coffee in paper glasses, don’t have any warnings,” said an official from a popular fast food chain in Mumbai.

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Beverages & Food Processing Times

28

Vol. 9, Issue 09 - February - 2017

NEWS

Starbucks on an expansion mode; introduces Teavana in India this initiative, the company aims to double its tea offering with the new range. Remarkably, the company already serves nine varieties of tea in India.

Starbucks acquired Teavana in 2012, a specialty tea retailer for $620 million. Teavana currently serves more than 400 locations across the U.S., Canada, Mexico, Puerto Rico and the Middle East. The company has 88 stores in India, coexisting with major players like Café Coffee Day, Barista, Costa Coffee and Di Bella Coffee, among others. Some 18 different tea offerings have been

E

Seafood industry wants govt. to initiate Blue Revolution for aquaculture

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a significant growth potential. China and AsiaPacific region will drive meaningful business growth in the next five years driven by rapid unit growth, growing brand awareness, and increased usage of the digital/mobile/loyalty platforms.

Starbucks is gaining popularity with consumers across Asia as the company is increasingly investing in Asian markets. The comparatively low per-capita consumption as well as an everincreasing middle class with rising income levels intensifies the demand for convenience food and beverages, and subsequently, promises

The company intends to scale up their earnings by 15-20 per cent as well as mid-single digit comps growth each year. To achieve this, Starbucks plans to open roughly 12,000 new stores worldwide by 2021, taking the total tally to nearly 37,000 stores.

Besides, the company will continue to boost the Starbucks experience globally.

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xpanding its global tea business Starbucks Corporation introduced Teavana range in India. The American coffeehouse chain played their marketing tricks right as India is considered to be the world's third-highest teaconsuming country. Starbucks launched Teavana speciality teas in India on January 18, through Tata Starbucks Pvt. Ltd, a joint venture between Starbucks and Tata Global Beverages. Through

ndian aquaculture and seafood sector contributes to nearly more than 6 per cent of the global fish production. The seafood industry desires that the government should free its fresh and brackish waters for organised aquaculture activities to achieve a Blue Revolution. Chairman and Managing Director, of WestCoast Group Kamlesh Gupta, a fully integrated aquaculture and seafood company said there is potential wealth stored in the 4.5-million-hectare fresh water resources in the country. Also, India has an estimated 11 lakh hectares available for brackish water shrimp cultivation, of which only 8.5 per cent or 1 lakh hectares has been brought under cultivation, offering enormous production potential. If the right measures are adopted, India, with its huge resources, has the potential to be the top player in seafood production.

introduced under Teavana, with a special India blend, jointly developed by Tata Global Beverages and Starbucks. CEO of Tata Starbucks Pvt. Ltd Sumitro Ghosh anticipates that this initiative will aid the company to double its revenue this year.

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Many private players in the country interested in aquaculture and fisheries. However, the capital intensiveness of aspects such as maintenance of aqua farms, seafood processing and maintaining a cold chain has deterred many from investing in these sectors.

The government needs to announce tax holidays in aquaculture. “We also need tax exemptions in areas such as seafood processing and cold chain promotion. Incentives will help bring down the cost of operations and make seafood more affordable,” he added.

Aquaculture should get the same benefits as that of agriculture. However, this is not happening even though the sector comes under the purview of the Ministry of Agriculture. Ideally, there needs to be a separate Ministry of Fisheries, he said.

EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

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