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FOOD PROCESSING NEWS
NITI Aayog prepares model contract farming law units for better price realisation and reduction of post-harvest losses. A model law on contract farming would, therefore, be prepared and circulated among the states for adoption.”
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To a separate query, Panagariya pointed out that part of the 15-year vision document shares sets of issues that “concern us immediately, i.e. what we should be doing in 2017-18 and 2018-19”. “And there is a general agreement on what we need to do immediately and in this sense, what budget 201718 is doing would contribute to 15-year vision document, which we would be putting out soon,” he said.
Finance Minister Arun Jaitley in his Budget speech had said: “We also propose to integrate farmers who grow fruits and vegetables with agro processing
The Aayog has been entrusted with preparing a 15-year vision document beginning 2017-18, which will replace the Nehruvian 5-year planning followed for over six decades. Besides the vision document, the Aayog will be ready with 7-year strategy and 3-year action plan based on which funds will be allocated in the Budget.
overnment’s premier think-tank NITI Aayog is preparing a model contract farming law to connect farmers with the food processing industry. NITI Aayog ViceChairman Arvind Panagariya said “NITI Aayog is preparing a model contract farming law. That would connect farmers to the food processing industry.”
Govt likely to sanction 100 cold chain projects next fiscal
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nion Minister Sadhvi Niranjan Jyoti said the government expects to sanction around 100 cold chain projects in the next fiscal and as many as 81 such projects have been sanctioned in nearly four years. Out of the 81 cold chain projects, none have been sanctioned to be set up through Public Private Partnership (PPP), the Minister of State for Food Processing Industries told the Lok Sabha during Question Hour, adding that around 100 cold chain projects are expected to be sanctioned in 2017-18. Only four cold chain projects have been sanctioned so far, this fiscal. Since 2013-14 till date, Ministry had sanctioned a total of 81 cold chain projects. Out of them, a maximum of 19 are in Maharashtra, followed by 13 in Uttarakhand. The Minister said viability gap funding scheme for financial support to PPP in infrastructure including cold chains and post-harvest storage has been formulated.
Jyoti said, "Under PPP mode, no cold chain/cold storage project has been set up in last three years and current year.” To promote the food processing sector, the government has taken various measures including extending project import benefits.
Dr. Oetker India bestowed with ‘Best Food Machinery/ Equipment Award’ by ASSOCHAM
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leading purveyor of western cuisine to India, Dr. Oetker India was honoured with ‘Best Food Machinery/Equipment Award’ by ASSOCHAM at ‘the 10th International Food Processing Summit & Awards’. The event brought together industry experts, policy makers and academicians from India and around the world that brainstormed to make India the food bowl of the world and push for ‘Make In India’ initiative of the Government of India.
Dr. Oetker India Managing Director & CEO, Oliver Mirza said, “We are thrilled to have been honoured with this prestigious award from ASSOCHAM. The acknowledgement by industry partners only encourages us to continue to perform better and endlessly work towards our motto of ‘Quality is the best recipe’. We have done a decent job through the last decade in terms of changing the dynamics of food processing, but we believe it is only a start. With the launch of our new stateof-the-art plant next month, we aim to set new standards of excellence.” Mirza also spoke at the session on “Make in India – A Platform for Investment Opportunity in Food Processing Sector and through 100% FDI in Food Retail”. He shared insights on Dr. Oetker’s journey in India, quick glance on the soon-to-be launched state-of-the-art manufacturing plant in Kaharani, Rajasthan and initiatives lined up for the next few years.
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Study says by 2024, food processing sector
to generate 9 million jobs
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n ASSOCHAM-Grant Thorton Research paper revealed that Indian food processing sector can attract USD 33 billion of investment and create nine million jobs by FY 2024. The ASSOCHAM-Grant Thornton joint study on 'Food Retail: Investment: Infrastructure' noted food processing sector is expected to employ nine
million people in India by 2024, and expected to generate about 8,000 direct and 80,000 indirect jobs in the state. The food processing sector is a key contributor to employment generation in India. The policymakers have identified food processing as a key sector in encouraging labour movement from agriculture to manufacturing. As per the study, Indian food processing industry is pegged close to USD 130 billion. With the second largest arable land in the world, it is the
largest producer of milk, pulses, sugarcane, and tea and the second largest producer of wheat, rice, fruits, and vegetables. Despite the massive production, the degree of processing is low and ranges between 2 to 35 per cent for different produce. India is one of the top rankers in the production of bananas, guavas, ginger, and papaya among others signifying an extensive opportunity in the food processing sector, indicates the paper. With globalisation and increase in trade across the borders approximately about 460 million tons of food valued at US$ 3 billion is traded annually. India has a great potential for global trade in agricultural and processed food products. In the last few years, the share of food processing exports in total exports was around 12 per cent. During FY 2011-15, India's exports of processed food related products have been growing at a CAGR of 23.3 per cent. The unorganised sector accounts for 42 per cent of India's food processing industry. The presence of small-scale industries points to the sector's role in employment generation. As per the study, though the market falls under the unorganised sector in
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the country, the organised sector has a great share in the secondary processing segment than the primary one. Food and grocery constitute a substantial part of India's consumption basket accounting for around 31 per cent share in the total. After China, the world's second largest producer of food is India. The arable land area of 159.7 million hectares (394.6 million acres) is the second largest in the world (after the US). India has a strong raw material base for the food processing industry. Demand for processed food is rising with growing disposable income, urbanisation, young population and nuclear families. Household consumption is anticipated to double by 2020. The changing lifestyle of people has facilitated an increase in expenditure on health and nutritional foods. India benefits from large agriculture sector, abundant livestock, and cost competitiveness. Investment opportunities are being tapped in agriculture, food infrastructure and contract farming. Also, diverse agro-climatic conditions encourage cultivation of different crop. Investment including FDI would rise with strengthening demand and supply fundamentals. Furthermore, launch of infrastructure development schemes can increase investment in food processing sector.
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Group of secretaries recommend additional tax on saturated food items
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top Health Ministry official said, group of secretaries have recommended putting an additional tax on saturated food items. Health Secretary C K Mishra said his ministry too has been making such recommendations from time to time while some amount of work on the issue is also being done by the country’s food regulator. “We have been making these recommendations. There is some amount of work also going on in Food Safety and Standards Authority of India (FSSAI). A group of secretaries also made a recommendation to tax all saturated food. These things are going on,� Mishra said. He was asked whether the government, as a serious policy measure, contemplating to put tax on some food items and drinks. As per reports, the group of secretaries had earlier recommended imposition of additional taxes on foods with added sugar and saturated fats. Higher taxes on junk food and sugary beverages were suggested because consumption of such products is growing fast and fuelling several lifestyle diseases like obesity, diabetes, and heart disorders. A recent World Health Organisation report said, taxing sugary drinks can lower consumption and reduce obesity, type 2 diabetes, and tooth decay.
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HEALTH NEWS
Nestle India to introduce healthcare products for the elderly citizens
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a strong presence in healthcare. Boost, Nutren and Resource are sold as products for the senior citizens to address nutritional needs for weight management and age-related diseases like diabetes and post-cancer treatment. Impact and Peptamen are for critical care needs, Optifast is sold as a product that helps in fighting obesity.
hairman and Managing Director Suresh Narayanan said, in the next two quarters, Nestle India Ltd shall introduce healthcare products suitable for nutritious needs of the elderly populace. After strengthening its hold in the baby food segment and making Maggi instant noodles a favourite staple for the young generation, the local arm of Swiss packaged food company Nestle SA has turned their eyes towards elderly Indians.
“The products we are evaluating to bring will be sold through hospitals, and some will be sold as prescription items. We will also start importing special nutritional products that address needs of the ‘inborn errors of metabolism’ among children which the regulator (Food Safety and Standards Authority of India) has allowed in August last year,” said Narayanan.
Currently about 60 per cent of Nestle India’s revenue comes from the younger population (below 40 years of age) and the rest from the infants and children. The company already dominates the baby food market with a 63 per cent market share in value terms with Lactogen, Cerelac, Nan, Nestum and Nestogen, will continue to augment its portfolio in the infant nutrition category. Remarkably, Nestle relaunched Milo in ready-to drink format and not in the powdered form initially popular in India. Narayanan added, “We would build healthcare as a category with products that take care of
health-related issues, such as diabetes. Nutrition and fortification are other key areas.” Nestle has
At present, 65 per cent of India’s population is less than 35 years of age and the ones above 60 is about 9%. Narayanan said, “It’s not about the next 5 or 10 years, which we can and will address, through the penetration game, along with differentiated products. But we need to be ready for the next 100 years. The kind of products we are planning
to launch will require a different kind of sales force which we have been building for the past 5-7 years.” Narayanan said the company will continue to reduce sugar across product range, including chocolates, and will increase fortification (a process to add micro-nutrients in food items) wherever possible. “We want to ensure healthy life of our consumers.” Narayanan also added that 2017 will be “the year of aggression with a purpose” for Nestle India not in terms of product launches, but in terms of how aggressively the Swiss company pushes its entire portfolio in the top 600 towns in India.
Salt consumption higher than normal in Delhi, Haryana
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eople in Delhi and Haryana consume over 8 gm of salt each day against WHO recommendation of 5 gm, a study said, directing that high intake of sodium remained seventh leading cause of mortality globally. The study carried out by George Institute for Global Health stresses that a public education campaign in India on the dangers of salt could really change behaviour. The assessment showed that overall urinary excretion of salt was estimated to be around 8.59 g/day in Delhi-NCR, while it was 9.46 g/day in Andhra Pradesh. The study, titled The Association of Knowledge and Behaviours Related to Salt with 24-h Urinary Salt Excretion in a Population from North and South India was carried on 1395 people to understand the consumption pattern of salt and understand the behaviour and knowledge of consumers. The study said "the intake was highest in the urban slums followed by rural areas. Another interesting finding from the survey was that majority of participants knew about the maximum salt consumption recommendation as less than 5 g/day and almost 90 per cent of the participants were aware that excess salt in the diet can lead to serious health concerns." It noted that people who were aware of the dangers of high salt intake had lower salt levels. Salt intake was higher in men than women, the study said while noting that 24 per cent of the products (with salt content) did not have any nutrition information and therefore do not meet the Food Safety and Standards Authority of India (FSSAI) rules. Salt is known to be a leading cause of high blood pressure and has been associated with other cardiovascular diseases. As per the Global Burden of Disease study 2010, excess consumption of salt is the seventh leading cause of mortality globally responsible for 1.65 million deaths. "Raised blood pressure is one of the leading risk factors for global mortality and is estimated to have caused 9.4 million deaths and 7 per cent of disease burden as measured in DALYs - in 2010. Executive Director, George Institute for Global Health, India VivekanandJha, said “The survey indicates that education can be a key factor in bringing about a behaviour change among people and influence their salt consumption pattern. For this, we need a robust multi-stakeholder system to chalk out the necessary steps to reduce the risk due to consumption of salt.”
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BAKERY NEWS
Britannia in Joint Venture with Greek baker Chipita
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ight years after India's biggest cookies maker lost its taste for partnerships in foods, Britannia Industries invited Greek baker Chipita to make rolls, croissants, and other dough products in a joint venture to meet the demands of a rapidly urbanizing home market.
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Britannia Managing Director Varun Berry said, "We've signed a non-binding MoU and are working towards formalizing a joint venture. We see immense scale through this partnership, since the categories are highly scalable and are bridge products between biscuits, chocolates and fresh bakery, at competitive prices’’.
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Brittannia will likely hold the majority stake in the venture that will involve an initial manufacturing investment of about $11million and will set up facilities next to its existing plants to optimise logistics costs, and leverage its existing strengths of supply-chain and distribution networks.
KOSHER & HALAL CERTIFIED M.B. suGArs & phArMACEutICALs LtD. Lodha Bhuvan, Post box No. 31, Malegaon, Dist. Nashik, Maharashtra- 423203. Tel: +91-2554-251883, 251885, 251893, 251894 Fax: +91-2554-251886 Email: mbho@mbsugars.com, mbsugar_nsk@sancharnet.in
The tie-up with Chipita is the first JV the NusliWadia-promoted Britannia will reinforce after its tie-up with New Zealand's Fonterra Dairy was dissolved in 2009 on account of lukewarm market response and losses. Britannia's venture
with French food and dairy giant Groupe Danone SA was also terminated the same year after a protracted legal battle. Savoury snacks in India are expected to register a 12% compounded annual growth rate over until 2020, with sales reaching Rs 445 billion. This growth will be driven by increase in consumer's purchasing power, product innovation and expansion in lower tier cities and rural areas. Spyros Theodoropoulos, chief executive of the 800-million Chipita said, “Chipita has had a minor presence in India: Over the past four years, it has been selling its confectionery brand Feniti’’. Brands in Chipita's portfolio include 7Days, Molto, Fineti and Chipicao, spanning categories such as croissants, cakes, biscuits, jams and confectionery. The over three-decade-old company has joint ventures in the Middle East with the Almaraih group (with which PepsiCo too had an existing partnership), and operates in Egypt as Edita Food Industries through a joint venture with the Berzi group. In Saudi Arabia, Chipita operates as Modern Food Industries (MFI) through a partnership with the Almara group and the Olayan Group. In the third quarter, Britannia Industries recorded a 7.1% increase in net profit to Rs 210.8 crore, with volumes rising 2%. In an analyst call last week, Berry said the company will now evaluate partnerships after incorporating all its learning from the past joint ventures.
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FOOD SAFETY NEWS
FSSAI considers initiative to list nutritional info on restaurant menus
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n a bid to promote food safety and nutrition at hotels and restaurants, the Food Safety and Standards Authority of India (FSSAI) is thinking how to get hotels and restaurants to list nutritional information such as calories, salt and sugar content in food products, on menu cards. The regulator is also working on norms for organic food. CEO of FSSAI Pawan Agarwal said, “We have been discussing this idea with the stakeholders. In several countries, this practice is already applicable, and in some of these places, it is voluntary. To enable restaurants that want to voluntarily list nutritional information on their menu cards, we may provide for a provision in the labeling regulations, which are being finalised.”
for this initiative. “We will need to do some field experiments to figure out the best way to do this. If we find that it serves a purpose, we may look at making it mandatory,” he added. Garish Oberoi, VP, Federation of Hotel and Restaurant Associations of India (FHRAI), and Managing Committee member of Hotel and Restaurant Association of Northern India (HRANI), said that the associations will run a pilot project based on these lines. “In a bid to take forward FSSAI’s Serve Safe initiative, we will be running a pilot with about 200 members in major metros. We will work with chefs on a model to specify estimated number of calories and other nutritional information on dishes being served, on menu cards,” he said.
Agarwal said the regulator will need to work with restaurant associations and State governments
FSSAI has now made it compulsory for every restaurant to have at least one trained and certified food safety supervisor. In collaboration with partners such as HRANI, it has started running training sessions for master trainers who will train these food safety supervisors. The food regulator is also working on norms for organic food in consultations with farmers and other stakeholders, and a draft regulation may be released soon. Agarwal said it aims to create an umbrella rule to ensure certification of organic food. A committee is also being formulated to look into issues such traceability and organic-food retailing practices.
Food regulator cautions food firms against misuse of its name, logo
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ith misuse of its name and logo by some food companies, FSSAI said the display of its logo and name in label and advertisements in any form should not suggest that the authority endorses any particular food operator and product. The regulator said in an order, “It has come to the notice that the name and logo of FSSAI is being misused to mislead the consumers into believing that the products of some food business operators have been tested, approved and endorsed by FSSAI. Thereby implying that the products of their competitors do not conform to the standards prescribed by FSSAI.” It said that
all products manufactured, stored, distributed, sold and imported are required to conform to the standards prescribed by FSSAI. The FSSAI logo is only allowed to be used as per Food Safety and Standards (Packaging and Labelling) Regulations. “It is directed that display of FSSAI logo and name in label and/or advertisements in any form should not be used to misrepresent the authority or to suggest that FSSAI endorses any particular FBO, company, organisation, product etc,” the order said.
Samples collected from midday meal kitchens by food dept. teams
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day after an inspection was ordered by the Delhi government, food department teams picked up 27 samples from midday meal kitchens. A senior government official said, “in accordance to the government order, 27 samples were collected by food department teams from midday meal kitchens supplying to schools. The inspection and sampling will continue.”
After nine students of a government school in Deoli fell ill after consuming midday meal which allegedly had a dead rat in it, the Delhi government has directed its designated officers to visit all midday meal kitchens to check hygiene level there. As per the order issued by the Food Safety Commissioner, all designated officers along with their Food Safety Officers have been directed to visit all midday meal kitchens and transportation facilities under their district to check hygiene and cleanliness as per the standards laid down under FSS, 2006 and Rules and Regulations 2011. “Also, the water used for cooking be lifted and tested. All kitchens to be sampled for full testing including microbiological test,” the directive said. National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited empanelled private labs have been directed to pick surveillance samples from the kitchen allotted and take them to their labs for testing.
FSSAI to bring new regulations for organic foods, hotels, and restaurant
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o ensure safety across the value chain through proper certification of organic products The Food Safety and Standards Authority of India (FSSAI) is going a draft regulation for organic foods. The food regulator also plans to make it mandatory for hotels and restaurants to keep one trained and certified food safety supervisor. FSSAI CEO Pawan Agarwal said, "There are some certification programmes for organic foods, he said, adding "We are creating umbrella regulations. Traceability is an important factor in organic foods market and the draft would also propose setting up of a committee to suggest any change in the certification method being followed currently or need for a new certification system, he added. For capacity building, the FSSAI tied up with the Hotel and Restaurant Association of Northern India (HRANI) to launch its programme for training of master trainers.
Aggarwal said "We are taking 360 degree approach to food safety and healthy nutrition to prevent food borne infections and disease and for complete nutrition for citizens everywhere at all times, and to achieve this the regulator has been taking various initiatives and issued new standards. FSSAI is in final phase of national milk survey, noting that the "magnitude of problem is not as big". Agarwal elaborated on various initiatives of FSSAI for spreading the message of food safety at different places like home, schools, work places and eating places. To ensure proper food safety management system in places of worship, he said a team from Delhi will soon visit 20 temples in Tamil Nadu. Agarwal talked about various consumer-facing initiatives including food safety connect for an integrated complaint redressal system and a water portal for checking the quality of packaged drinking water.
FSSAI: E-commerce food biz operators should obtain licence
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-commerce food companies must obtain licence for their entire supply chain besides ensuring that delivery of products is done by 'trained personnel' to maintain safety under the new guidelines issued by food regulator FSSAI. With an aim to regulate e-commerce food business, the Food Safety and Standards Authority of India (FSSAI) defined e-commerce Food Business Operators (FBOs) as those carrying out business through online medium. The food regulator said in its guidelines for 'Operations of e-commerce Food Business Operators'. “E-commerce FBOs shall be covered under schedule-I of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulation, 2011. These e-commerce FBOs need to obtain license from the Central Licensing Authority for the entire supply chain.” As per the new rules, the supply chain will include the companies Head Office or registered office, manufacturers, transportation, storage, and distribution. These guidelines come in the wake of series of consumer complaints against e-commerce companies offering poor quality products and services. With a view to ensure food safety, the FSSAI further said: “It shall be ensured by the e-commerce FBOs that the last mile delivery is undertaken by trained delivery personnel and the safety of
food product is not compromised at the time of delivery.” E-commerce entities providing listing/ directory services to the sellers/brand owners, restaurants, vendors, importers, or manufacturers of the food product may not be required to obtain license/registration under the Act. Although, these e-commerce entities should ensure that no misleading information/false claims pertaining to the client base or misleading images of food products are made available or shown on their platform. The e-commerce entities should clearly specify on their platform that liability of any violation of the FSS Act and applicable rules and regulation would be with sellers/brand owners, vendors, importers, or manufacturers of the food products. On a supply chain compliance, the FSSAI said that all e-commerce FBOs will be required to sign an agreement with the sellers/brand owners/ manufacturers "declaring that the said sellers/ brand owners/manufacturers are compliant with the FSSA Act and rules and regulations." Regarding consumer complaints, FSSAI said that the e-commerce FBOs would have to immediately notify the issue to the sellers/brand owners/ importers/manufactures who would be liable for prompt resolution. In case of recall, FSSAI said that e-commerce FBOs/ entities must immediately delist any food products listed on their platform, which are not in compliance with the Act.
Citizens should not accept newspaper-wrapped food
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n advisory has been issued by the Pune Cantonment Board (PCB) for dealers and consumers not to sell or accept food wrapped in newspapers, due to health concerns. This comes two months after a Central advisory regarding the same. The board said public should refrain from accepting food items packed using newspapers out of health and safety concerns, due to the kind of substances used for printing. Chief executive officer of the board DN Yadav signed the advisory. It said, "When newspapers are printed, dangerous chemicals are used, which can cause serious health concern. Newspapers also contain microorganisms and other additives used to enhance the print, which can cause dangerous
Beverages & Food Processing Times
health issues if humans consume it with the food wrapped in it." .A senior health department official of the PCB said,"we are not going to ban newspaper wrapping of food outright. Instead, we are looking to educate the public and businessmen about the dangers of this practice.” The push to discourage newspaper wraps for food had come from the Union health ministry as well. FSSAI had also warned in December that the nation was being "slowly poisoned" due to the rampant use of newspapers to wrap food items. Food contamination due to substances used in a newspaper could lead to serious ailments like cancer, particularly in old people and children, it said.
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BEVERAGE NEWS
Demonetisation had significant Beverage cups to now carry impact on Pepsi’s market ‘contain caffeine’ warning
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ccording to global Chief Executive Officer Indra Nooyi, PepsiCo India may emerge from the setback caused by demonetisation only by the April-June quarter. She is the seventh leader among consumer companies to voice concerns over the note ban’s significant impact on sales. Nooyi said that it is their hope that by the time Q2 rolls by, they would be through the bulk of the demonetisation challenges and the new currency and the digital currency will be back in circulation and Pepsi will be back to retail activity coming back to normal. But still the company is not totally out of the woods. Nooyi said scrapping of the high-denomination rupee notes in November was a massive change because 80% of the currency was taken out of circulation and the implementation of the measure had its share of challenges. Demonetisation had a significant impact on our India business in Q4. It hit individual retailers significantly. And there are still some lingering effects. India is a big country,” she said. Pepsi said the Asia, Middle East and North Africa (AMENA) region was negatively affected by issues such as operating cost inflation and higher raw material costs. Net income fell 18% to $1.4 billion in the fourth quarter, while net revenue increased 5% to $19.5 billion from a year earlier. India’s carbonated drinks sales are estimated at over Rs 14,000 crore. Volume growth has been in the low single digits for at least four quarters as consumers in urban markets increasingly prefer healthier drinks, while in the rural areas, they’ve been scaling down on discretionary spending. Nooyi told analysts the company was making “significant progress in transforming its portfolio.” The maker of Pepsi and Mountain Dew fizzy drinks and Lay’s chips said last year it would reduce the sugar content in juices and carbonated drinks across markets including India by 2025. Nooyi said the company had a ‘pipeline of innovations’ such as Tropicana Essentials functional juices and
Quaker foods, which she said were helping to fuel sales in developed markets such as the US. Globally, the Pepsi cola trademark contributes 12 per cent of net revenue, while 25 per cent comes from everyday nutrition products such as bottled water and foods and drinks packed with grains, fruits, and vegetables. Food and beverage makers are facing pressure from consumers, health activists and governments to make their products healthier to rein in obesity and diseases such as diabetes. Measures to reduce sugar include replacing it with natural and artificial sweeteners and making smaller packs of beverages and snacks. In India, while PepsiCo is using plant-based sweetener stevia in 7UP, leading to a cut of 30% in sugar content, it is selling colas in smaller 150 ml cans. Demonetisation announced on November 8 by Prime Minister Narendra Modi led to slowing down of sales across consumer goods, with global heads of companies ranging from Coca-Cola to Unilever and Colgate-Palmolive stating that the currency curbs had significantly impacted their India numbers. Drinks packed with grains, fruits and vegetables. Food and beverage makers are facing pressure from consumers, health activists and governments to make their products healthier in order to rein in obesity and diseases such as diabetes. Measures to reduce sugar include replacing it with natural and artificial sweeteners and making smaller packs of beverages and snacks. In In India, while PepsiCo is using plant-based sweetener stevia in 7UP, leading to a cut of 30% in sugar content, it is selling colas in smaller 150 ml cans. Demonetisation announced on November 8 by Prime Minister Narendra Modi led to slowing down of sales across consumer goods, with global heads of companies ranging from Coca-Cola to Unilever and Colgate-Palmolive stating that the currency curbs had significantly impacted their India numbers.
Amla Juice introduced by Dabur under Real Wellnezz brand
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abur India Ltd announced the expansion of its Real Wellnezz range with the introduction of new Real Wellnezz Amla Plus Juice. It shall contain primarily amla pulp mixed with apple juice, that is a powerhouse of nutrients and is a healthy beverage option to meet the daily nutritional needs of modern day consumers. Amla Plus is made up of 100 per cent juice content with no preservatives, and available at an introductory price of Rs 99 (Rs 110 as standard) for a pack of 1 litre. Head –Beverages and Culinary, Dabur India Ltd, Mayank Kumar said, “Today’s healthconscious consumers prefer healthier beverage options. We have been witnessing an increase in consumer demand for a variety of juice flavours including traditional ones such as Coconut, Jamun etc. Real WellnezzAmla Plus Juice is a pure offering with 100 per cent juice content, which makes it a perfect ready-to-drink juice for
consumers who seek active and healthy lifestyles.” This natural beverage with no added colour and flavour is aseptically packaged in six-layer, tamperevident Tetra Pak packaging, which protects it from oxygen, light and bacterial spoilage and gives it a longer shelf-life without the need for preservatives. The sleek package offers convenience, safety, hygiene, easy handling, and easy disposal after use. Being paper-based, the packages are 100 per cent recyclable. “Amla is considered to possess various health benefits which is a prerequisite for the contemporary hectic and sedentary lifestyle. It is an excellent source of Vitamin C, which helps to boost immunity, metabolism and prevents viral and bacterial ailments, including cold and cough. With the launch of Real WellnezzAmla Plus Juice, we aim to not only extend brand Réal to give our consumers more choices but also bring the goodness of Amla encapsulated in a tetra Pak, making the experience of consuming juice more enjoyable and nutritious.” Kumar added.
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ast food chain company McDonald’s beverage containers sold at their outlets in western and southern India will now carry the ‘contains caffeine’ warning.Caffeine is a stimulant found in beverages such as coffee, tea, and carbonated drinks. The company agreed to carry the warning after the Food and Drugs Administration (FDA) issued a notification asking food and beverage outlets to put the warning on cups or lose licenses. Shopping malls, multiplexes, cinema halls, restaurants and bars and fast food chains that sell caffeinated products without a warning on the containers were under the FDA radar. FDA Commissioner, Harshdeep Kamble said “All the other outlets, using paper glasses have preprinted warnings unlike the ones McDonald’s was selling. However, they are abiding by the norms and our only intention is to inform the customer about the contents of the drink and not target a company.” FDA was targeting one company when several multiplexes, restaurants, food-stalls, and fast food chains sell caffeinated drinks like tea and coffee in paper glasses, without warnings. An official from the fast food industry said, “Firstly, there are no
specific guidelines on the containers or glasses that are used to dispense the caffeinated beverages. FDA targeting McDonald’s 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.” FDA officials argued that they haven’t found violations at any other outlet. The issue received limelight after a Kolhapurbased franchise of McDonald’s India was pulled up by local food and safety officer. However, the franchise went into an appeal against the action, FDA Maharashtra commissioner looked into this issue of beverages being sold without a warning after which the state-wide notification was released. A spokesperson from McDonald’s India - west & south India, said “following the directive, Hardcastle Restaurants, a franchise of McDonald’s, has adhered to all statutory requirements, and complies with all applicable laws pertaining to mandatory food labelling. McDonald’s restaurants have implemented the advisory on its packaging. At McDonald’s India, the health, safety, and well-being of our customers are paramount. We have always conformed to the highest quality and food safety standards and will continue to do so at all times.”
Coca Cola collaborates with DCM Shriram to enhance sugarcane yield
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everages major Coca-Cola India has collaborated with DCM Shriram (DSCL) along with Solidaridad and International Finance Corporation for a project to enhance sugarcane yield and improve farmers’ income in Uttar Pradesh. Coca-Cola India and South West Asia President Venkatesh Kini, “It is a sustainable supply project, in addition to improving farmers’ income. We have come together to increase sugarcane farmers’ yield and to bring in sustainable agricultural practices.” DCM Shriram, also a supplier to the beverages major, has four sugar mills Ajbapur, Hariawan, Loni and Rupapur in Uttar Pradesh and the project works with farmers around its mills. The project
Meetha Sona Unnati will work with about 48,000 farmers (8,000 lead sugarcane farmers, 40,000 sub lead farmers) for 3 years in the command area of DCM Shriram’s four sugar mills. DCM Shriram Executive Director Roshan Lal Tamak said, “We have seen positive impact on sugarcane farmers’ yield in the areas we have worked on. We have been training farmers on best international agricultural practices and adopting modern techniques.” The project aims to train farmers on good agriculture practices (GAP), Integrated Pest Management (IPM) and efficient water usage and implement farmer practices to improve demand side water efficiency.
Varun Beverages hikes stake in Zambia subsidiary to 90 per cent
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arun Beverages has increased its stake in its Zambia subsidiary, Varun Beverages (Zambia) Ltd, to 90 per cent from 60 per cent. VBL has been successfully running the Zambia operations since its acquisition in 2016,” the company said in a statement. However, it did not give details on the financial transaction and valuation. It further said, “The increase in stake reflects the company’s confidence in the future growth prospects of the subsidiary and will be an effective catalyst to drive further business growth in a fastgrowing emerging market.” Varun Beverages Chairman Ravi Jaipuria said, “the stake increase in our Zambia subsidiary is in line with our philosophy of consolidating our presence in fast growing emerging markets beyond India. We have recorded healthy volumes in our first year of operations and are highly profitable already with strong free cash flow generation.” Jaipuria said Zambia continues to be an under-
Beverages & Food Processing Times
penetrated market and offers significant upside potential. The company had recorded sales volumes of 10.7 million cases in 2016 in Zambia. “The operations are highly profitable and reported an EBITDA of Rs 467 million in calendar year 2016. Given the growth prospects and promising earnings potential, the acquisition comes at a very reasonable valuation with an attractive payback,” it added.
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Vol. 9, Issue 10 - March - 2017
BEVERAGE NEWS
Paper Boat dairy-based beverages, ethnic snacks to expand their presence
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has been trying its hand with spiced buttermilk, neer more, in Tamil Nadu. Debuka said the company will now look to expand the distribution of its spiced buttermilk offering in Karnataka and Andhra Pradesh this summer.
ector Beverages, whose popular brand Paper Boat known for their ethnic drink flavors is now gearing up to up their presence in the dairy-based beverages segment, with thandai and spiced buttermilk. Last year in Delhi-NCR, the company had test-piloted thandai. The beverage closely associated with the festival of Holi in North India, is another attempt by the company to launch seasonal drinks to tap into “appointment drinking” consumption. In the past, it has launched sharbat during Ramzan and panakam during Ram Navami in the South.
With its entry into ethnic snacks last month, Debuka said “We have been pleasantly surprised with the consumer response to our ethnic snacks offering — chikki. We are selling chikki in select markets, such as Delhi-NCR, Maharashtra, Karnataka, Andhra Pradesh, and Tamil Nadu. We are now looking at how we can scale this up.”
To cater to consumers beyond North India, it has also exclusively tied up with Amazon to sell thandai, especially in multi-pack formats. Hector Beverages, Marketing Head, Parvesh Debuka said “We saw very good response for thandai last year.
February and March. We are trying to create a new category of “ready-to-drink thandai.”
This year, we have significantly scaled it up. It will be available in modern trade outlets and other key retail outlets in Delhi, Punjab, Uttar Pradesh and Madhya Pradesh for the Holi season (March).We aim to make thandai our top-selling beverage in
Being manufactured at the company’s Mysuru plant, where the firm has developed capabilities to make dairy-based beverages. Hector Beverages’ attempts to grow its portfolio by adding dairybased beverages are not just limited to thandai. It
Multi-serve packs will help us strengthen presence in modern trade stores and the e-commerce channel, he added. This summer, the company will launch one-litre packs of its beverages such as aamras and aam panna. Paper Boat has largely been selling its drinks in single-serve 200 ml packs, and launched 500 ml packs late last year.
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HCCBL to set up plant in Madhya Pradesh, to invest Rs 750 crore
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industan Coca-Cola Beverages Ltd (HCCBL), the bottling arm of Coca-Cola in India, has announced the pioneering of its 110-acre plant that would house multiple bottling lines for its carbonated beverages such as Coca-Cola, Sprite, Fanta, Thums Up and Limca. The company invests Rs 750 crore to set up a plant at Hoshangabad, Madhya Pradesh. Besides, the Greenfield plant will produce juices and juice-based drinks like Minute Maid and Maaza, packaged water, and soda Kinley will have different wings comprising of production and warehousing building and have a zero-discharge plan. "Our investment route is very much in line with India's long-term growth strategy of building sustainable, long-term businesses contributing to national and local economy as well as localsocial fabric", said CCBL Chairman & CEO T Krishnakumar. .
Coca-Cola targets Maaza to become $1 bn brand by 2020
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everages major Coca-Cola India is targeting its mango fruit-based drink Maaza, which it acquired in 1993, to become a $1 billion brand by 2020.Coca-Cola India and South West Asia President Venkatesh Kini said “We would love to see Maaza become a $1 billion brand coming out of India by 2020. The brand has potential to be there. All our consumer research show that Maaza is India’s most trusted and loved brand.”
At present, Maaza is a Rs 2,000 crore brand, he added. In 1993, Coca-Cola India had acquired Maaza along with brands such as Thums Up and Limca from Parle Bisleri. To achieve the target, company is also investing in areas such as increasing manufacturing capacity. “The resource infusion behind Maaza is a part of the USD 5 billion investment plan of the CocaCola company and its bottlers in India, between 2012 and 2020. The bottlers of the company are setting up 5 Greenfield projects over the next 2 years, at least 50 per cent of which will have manufacturing lines for Maaza,” the firm said.At present, Coca-Cola company and its bottlers in India annually procure 70,000 metric tonnes of mango pulp worth Rs 500 crore. The company has already announced one greenfield facility in Madhya Pradesh. “These new lines will help keep pace with the expected increase in demand of Maaza over the next few years,” it added. The company had earlier indicated that Maaza will become a $1 billion brand by 2023.
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Vol. 9, Issue 10 - March - 2017
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
SNACKS NEWS
Haldiram’s revenues grows by 13% to cross Rs 4,000 crore in FY16
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aldiram’s revenues grew 13 per cent to cross Rs 4,000 crore in FY16 shrugging increased scrutiny from food regulator amid the Maggi crisis. The Indian snack major is now twice the size of Hindustan Unilever's packaged food division or Nestle Maggi and larger than the India turnover of the two American fast food rivals Domino’s and McDonald’s put together.
The company has three distinct areas of operations with Haldiram Snacks and Ethnic Foods with that clocked Rs 2,136 crore from the northern region, Nagpur based Haldiram Foods International that caters to western and southern markets with annual sales of Rs 1,613 crore and a much smaller company, Haldiram Bhujiawala, for the eastern market with revenues of Rs 298 crore in FY16, according to data from Tofler, a company research platform.
These figures, when combined with other regional snacking firms, conclusively demonstrates one thing — in fast food or munchies, despite the profusion of MNC brands with high cool quotient, good Indian palate prefers local savories. The brand, that experts feel, could have more than Rs 5,000 crore in retail sales, has survived through disputes and break-ups in the original Agarwal family that started with a small shop in Bikaner in 1937. Haldiram’s is the biggest brand of those launched by Agarwals and the second largest Indian food brand after Parle. While restaurants and casual dining was the beginning, packaged products now make up 80 per cent of revenues. Haldiram’s is by far the market leader in traditional snacks market and bigger than five of its regional rivals — Balaji Wafers, Prataap Snacks, Bikanervala, Bikaji Foods and DFM Foods — combined. Western snacks still dominate the snacks market such as potato chips and finger sticks controlled primarily by Pepsi Frito Lays and ITC Foods. Even these companies are gradually entering into Haldiram’s turf. For instance, Pepsico’s Kurkure has 16 variants of Indian namkeen while Paper Boat will soon enter the category.
Pladis India brand McVitie’s to venture into ‘Creams’ segment
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ladis India, one of the leading food snacks company is keen on widening its portfolio as they enter the cream sandwich biscuit segment under its iconic brand McVitie’s. The company is hopeful to double its revenues in the next two to three years. Total biscuits market in India is estimated at Rs 25,000 crore and the cream biscuits segment contribution is approximately 20 per cent. Abhishek Sharma, President, Pladis India (also known as United Biscuits Pvt Ltd) said, “We have now established McVitie’s as a strong brand in India. We believe the time is right for us in the mass category to be relevant to a larger consumer base in the country. Foraying into the cream biscuit segment is a crucial step for us, as we hope to double our revenues in the next 2-3 years.” Currently the retail sales of McVitie’s is pegged at over Rs 200 crore in India. At the same time, the digestive biscuit segment contributes just about one per cent to the overall biscuit segment. Sharma said this foray will help the company, which has largely been focusing on the niche health-driven digestive biscuit segment, to now have a presence
in the taste-led mass cream biscuits category. McVitie’s Creams packs will sport the Jungle Book characters under a brand licensing agreement. “In what will be a first initiative of its kind, McVitie’s Creams packs will come with a QR code, kids will be able to scan these and watch webisodes of The Jungle Book on the smartphones. So, we will be leveraging on this brand licensing agreement to engage with kids at different levels,” Sharma added. The company will also promote the products with the help of their brand ambassador Bollywood actor Kajol to connect with mothers. McVitie’s Creams will be available at Rs 20 and Rs10 packs in various flavours such as chocolate, vanilla, strawberry and orange. “Biscuits is a highly-penetrated category in the country and we will expand our distribution as we enter this mass cream biscuits segment,” adding that the company will initially focus on strengthening distribution in the top 100 cities and towns. Sharma also said that ramping up its distribution will also help the company to increase distribution of its digestive biscuits range as well as introduce brands from its global portfolio in the long term.
Rasna eyes kids snack segment, to expand product portfolio
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asna a market leader with 85 per cent share in the Rs 1,000 crore-powdered drink space is looking to capitalise on the "huge opportunity" in the evening snack space for kids and planning to expand its overall product portfolio. Rasna’s Chairman and MD Piruz Khambatta said, "There is a huge opportunity for Indian food product companies in the kids-back-from-school segment. We are trying to work on new products in the evening space. In our ads and our products, we are trying to take the evening snack proposition. Rasna is trying to defy the competition by focusing on sweet snack category as many players are trying to grab a pie in the savoury snack space. We have 9 plants across the country and we make 4 billion glasses each year. It is good enough for the next one year but we will be expanding it in
fiscal year 2018-19. We will be having a Greenfield plant but we have not decided on the location yet. We will be adding our capacity by 10-15 per cent," Khambatta said, and added the third plant will also manufacture its breakfast snack Vitos. The company, which spends 15-20 per cent of its revenues on advertising and marketing, is pushing more premium products in the rural areas. "People in rural areas are moving to semi-premium products. We are pegging more premium products in the rural areas," he said adding the company gets 30-35 per cent of its revenues from these markets. Almost 70 per cent of Rasna's sales is achieved in summer and the company will be changing the packaging for its ready to drink brand Ju-C and introducing three new flavours to the brand during its peak season.
Kurkure co-packer to double capacity by 2019
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elhi-based AFP Manufacturing, co-packer for PepsiCo's Kurkure and Kurkure Namkeens, plans to double its capacity to 30,000 MT per annum by 2019 with an investment of Rs 40 crore-50 crore.AFP Manufacturing Executive Director Manoj Gupta said, “we have one plant in Bihar with a capacity of 15,000 MT per annum and we are setting up another facility in two years in Delhi-NCR. We will be doubling our capacity and the investment will be approximately Rs 40-50 crore." The company that started manufacturing for PepsiCo in 2011, is also in talks with retailers
like Reliance and Walmart to manufacture their snacks."In 2008, we were manufacturing for Walmart but discontinued when their JV with Bharti ended. Now we are again in talks with them and Reliance,” he said. A turnover of Rs 80 crore is anticipated in the current fiscal, with PepsiCo contributing 60 per cent of the revenue, but expects the share from its own brand Munchon's to increase significantly over the next five years.Gupta said "we were earlier selling our products under the brand Aggarwal. We recently relaunched the brand as Munchon's two months back. We are present in East, North East and North. We will next look at South and then West. In the next five years our total turnover will be Rs 350 crore and Munchon's will contribute 90 per cent of it." The company is also planning to export Munchon's from next fiscal year, starting with the Gulf region.
FMCG brand by the name ‘Earthspired’ launched by Mrida
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social business ventureMrida that is committed to upliftment of marginalized and underserved rural communities at the Base of the Pyramid, has formally launched its FMCG brand Earthspired.The name‘Earthspired’ has been framed from the phrase- Inspired by the Earth, also owes its origin to “Soil” Mrida in Sanskrit.
Earthspired will focus on ‘More Millets’ and therefore ‘More Health’. Millets have long been recognized as magic seeds. These highly nutritious grains with short growing periods under moderate and high temperature conditions are suitable for growing in local soils. They require less water and are hence also more environment friendly. Earthspired Millet Based Flour/Atta Mixes represents a thoughtful blend of millets and amaranth to provide healthier options to the regular rice and wheat based offerings.Ease of preparation and use, and meticulous sensory evaluations to ensure that good health also means good taste, are some of the other qualities that Mrida seeks to bring to consumer’s kitchens, tables and plates through Earthspired.
Earthspired is intended as a Health and Wellness Initiative. It will be a healthy, wholesome, and straight from Rural India business. Through Earthspired, Mrida seeks to build distribution channels for products such as millet based ground flour (‘atta’), cake mixes, cookies, healthy snacks, and other similar products offering health benefits to the end user. This effort would help create much needed sustainable livelihood opportunities in remote rural areas and underserved communities spreading smiles and transforming lives. The raw materials for Earthspired will be sourced directly from farming communities: cooperatives, farming federations, and other farmer groups.
Earthspired products are currently available in different categories like Attas/Flour Mixes and Cookies, and the entire range is FSSAI approved. The Attas are available in 8 different mixes including two Gluten free variants. The range today comprises the Healthy, Healthy High-Protein, Northern Spice, Southern Spice, Mediterranean Spice, Healthy Unrefined Multigrain (useful for diabetics), Gluten-free and Gluten-free High Protein variants. The Cookies are healthy, nutritious snacks available in three ‘Crunchy Bite’ variants – Honey Almond Crunch, Choco-Chip, and Coconut Crunch.
Co-founder of Mrida Group, Arun Nagpal said, “Mrida in Sanskrit means ‘Soil’. And that, in a single word encapsulates what we stand for. Our product offerings emanate, literally as well as figuratively, from the soil. Mrida is all about business models for transforming lives, and Earthspired is an offering that fits well into the core philosophy and contributes to the larger Mrida story. Through Earthspired, Mrida also empowers rural farmers and village folk to create a selfreliant, progressive and sustainable economy.”
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Earthspired products are also available in a range of gift packs with different combinations of Attas and Cookies. Products in the pipeline and to be launched in the near future include Gluten Free Cake Mixes, Sweet and Salted Snacks, Amaranth Cookies, and Coffee Flavored Crunchy Bites. As part of its global outreach initiative, Mrida hopes to develop markets for Earthspired products in the Middle East, EU Region, and the US. Other plans include promoting rural artisans by bringing a range of handicrafts and locally made products under the Earthspired brand over time.
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TRADE NEWS
Currency crisis in Iran hits India's basmati rice exports
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ncertainty over use of currency for bilateral trade has impacted India’s basmati rice exports to Iran following hesitation over the use of the dollar after fresh sanctions levied by the United States on the Islamic country. According to trade sources, the Iranian government is reluctant to use the dollar for bilateral trade with friendly countries, including India. Since India has already cleared its oil dues in dollars, Iran lacks rupeedenominated currencies in its foreign currency reserves, casting a cloud uncertainty over India’s basmati rice exports to that country. Trade sources believe that Iran is looking to replace the dollar with the euro. However, nothing has been finalised yet, and till a decision is taken, India’s basmati exports to Iran may not resume. Shipment for old contracts, however, will continue. “India had a bilateral understanding with Iran for settlement of oil purchases in rupees. In fact, India cleared all dues arising from crude oil purchases in dollars. Hence, rupee reserves (in Iran) have been exhausted. Interestingly, Iran is reluctant to use the dollar for bilateral trade in response to US sanctions on it. The Iranian administration has also not taken any final decision on the use of any alternative currency. Hence, there is uncertainty over India’s basmati rice exports to that country. Until, the dilemma over the use of currency recedes, India’s basmati rice exports to Iran are unlikely to resume. Meanwhile, a group of over six to eight importers in Iran has set $850 a tonne as the maximum import price of Indian basmati, which exporters based here find unviable due to a sharp increase in the prices over the past four months. They seek a
minimum $925–950 a tonne. A senior APEDA official said the Iranian government hasn't set any price for Indian basmati. “The currency issue can be dealt with bilaterally (between buyers and sellers) through use of alternative denominations like euro, yen and rupee. So, our request to exporters is not to sell basmati rice at a loss. They should wait till a clear price signal is received from the market,” a senior industry official said. Meanwhile, the price of the benchmark basmati rice in the wholesale market near New Delhi jumped by 50 per cent to trade at Rs 72 a kg currently from Rs 48 a kg on October 1, 2016. Indian exporters, therefore, seek a similar increase in realisation from basmati exports to Iran. In the last two tenders, the average realisation works out to $650-700 a tonne. Iran’s move to put a cap is a result of a cartel of importers there. However, Iran has also reduced duty on basmati rice to 26 per cent from 40 per cent to ensure that its countrymen get rice at lower cost. Pakistan will derive some advantage from this as their logistic cost is lower due to proximity with Iran,” said Rajiv Tevtiya, Managing Director, RML AgTech, a Mumbai-based agri-technology and advisory firm. Meanwhile, data compiled by APEDA showed India’s basmati rice exports at 2.9 million tonnes between April–December 2016, 0.1 million tonnes lower than the same period the previous year. Exports, however, are likely to pick up and touch last financial year’s level of 4 million tonnes by March 2017, said an APEDA official.
Budget 2017 to give boost to agri sector, neglect food processing industry
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hough not a "big game changer", but Budget 2017 will spur the farm and allied sector even as they urged for better implementation of schemes. Agri-industry and farm experts welcomed the Budget for 2017-18.
But the Edible oil industry body SEA, expressed disappointment that the government did not change import duty on edible oils. Edible oil industry body SEA President Atul Chaturvedi said, "Finance Minister has chosen not to change the import duty on edible oil and decided to maintain the status quo. This will discourage farmers to continue to grow oilseeds and may switch over to other crops and our dependence on imports of vegetable oil will further increase." It is also good to see that the government is focusing on water. The separate funds to focus on irrigation show commitment to water. Now, the question is delivery. NABARD, state governments and Ministry of Water Resources should ensure that funds do not disappear like water.
The government has not announced much to boost food processing except for creating separate fund for dairy sector, and it also did not announce any step to "change the big monster of food and fertiliser subsidy. There was no mention, not a word on fund allocation to encourage farm mechanization, food processing and steps to curb food and fertiliser subsidies. 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. With the 'Make in India' narrative, the government needs to focus on private dairy companies as well. Agri-logistics firm National Collateral Management Services Ltd (NCML) Managing Director and CEO Sanjay Kaul said, "The budget reflects sobriety in approach. In the agri-rural space the Finance Minister has given a 24 per cent hike. If this largely goes towards productive infrastructure it would give a fillip to the rural economy and create jobs.
Govt to abolish Foreign Investment Promotion Board
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he Foreign Investment Promotion Board (FIPB) has been decided to be abolished, as announced by Finance Minister Arun Jaitley in his budget presentation. While, the FIPB had the final say in approving Foreign Direct Investment (FDI) proposals in the country for long, its power has been systematically reduced under the current government. Most notably, back in June, 2016 the government had announced relaxed FDI norms in single brand retail, civil aviation, airports, pharmaceuticals, and animal husbandry and food products. It had allowed up to 100% FDI in defence through the approval route, 100 per cent FDI in food product e-commerce, 100 per cent FDI in greenfield pharma via the automatic route, 100% in browfield pharma — of which 74% will be through automatic route — 100 per cent FDI in scheduled airlines, and up to 49 per cent FDI in airlines through automatic route. In the last two years, the government has brought major FDI policy reforms in several sectors, including defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, cardamom, palm oil tree and olive oil tree plantations, single brand retail trading, manufacturing sector, limited liability partnerships, civil aviation, credit information companies, satellites - establishment/operation and asset reconstruction companies. Incoming FDI grew 27 per cent in the first seven months of the fiscal to $27.82 billion, from $21.87 billion a year ago. Manufacturing accounted for 41.5 per cent of the total equity inflows into the country during April-October, according to the Department of Industrial Policy and Promotion’s (DIPP) year-end review. This happened at a time when the government made a fervent pitch abroad for ‘Make in India’ to make India a manufacturing hub of the world and generate large scale employment. Services, telecom, trading, computer hardware and software and automobiles were among the major sectors that attracted FDI during this period. "During April-September 2016-17, FDI equity inflows were $21.7 billion as compared to total FDI inflows of $16.6 billion during April-
September 2015-16, showing 30.7 per cent surge," the Economic survey pointed out. The government has been pushing for enhancing ease of doing business and a favourable patent regime to make India an attractive investment destination. Currently, the Finance Minister considers the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs 3000 crore. The recommendations of FIPB on proposals with total foreign equity inflow of more than Rs 3000 crore is placed for consideration of Cabinet Committee on Economic Affairs (CCEA). The FIPB was initially constituted under the Prime Minister's Office (PMO) in the wake of the economic liberalization drive of the early 1990s. The recommendations of the FIPB were approved through a 3-tier approval mechanism, viz. FIPB as a committee of senior officials to examine and make recommendations; Empowered Committee on Foreign Investment (ECFI) chaired by the Finance Minister for deciding on the recommendations of the FIPB for projects in which the total investment in the project was up to Rs 300 crore; and the Cabinet Committee on Foreign Investment (CCFI) for deciding on the recommendations of the FIPB for projects in which the total investment was more than Rs 300 crore. The Board was reconstituted in 1996 with transfer of the FIPB to DIPP and approval levels were as under: Recommendations of FIPB in respect of the project proposals each involving a total investment of Rs 600 Crore or less would be considered and approved by the Industry Minister. The recommendations in respect of the projects each with a total investment of above Rs 600 Crore would be submitted to the Cabinet Committee on Foreign Investment (CCFI) for decision. The FIPB was transferred to the Department of Economic Affairs Ministry of Finance.The levels of approval were essentially retained, except to the extent that recommendations of FIPB for projectproposals involving a total investment of less than Rs 600 Crore would be considered and approved by the Finance and Company Affairs Minister and those with a total investment beyond Rs 600 Crore would be submitted to the Cabinet Committee on Economic Affairs for decision.
Japan's Nippon Paper set to acquire Plus Paper Foodpac
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y acquiring the country’s largest maker of paper beverage cups Plus Paper Foodpac, Japanese paper and pulp giant Nippon Paper is all set to enter India, the company said in a statement. Though the deal size is not disclosed yet, but there are estimates that it could be around Rs 100 crore. Nippon Paper had agreed to buy 100% stake in Plus Paper in December last year. Purchasing all outstanding shares in the Indian company this month will give the Japanese company its first manufacturing and marketing base in the subcontinent. It intends to use its manufacturing knowledge to boost factory productivity and quality. Plus Paper operates two factories in India. EY, Anchor Advisors, Indian Law Partners (ILP) and PDS Legal were the financial and legal advisers in the transaction. Mori Hamada & Matsumoto through its India practice partner Yohei Koyama advised Nippon Paper with respect to Japanrelated aspects of the transaction. This is Nippon Paper Group’s overseas expansion initiative for the paper container processing business following the recent opening of its plant in Vietnam. In Vietnam, Nippon Paper has taken ownership of the manufacturing and marketing operations of local paper cup market leader Viet Hoa My
Beverages & Food Processing Times
Service Trading Production.It expects demand for paper cups by India's restaurants to grow along with an expanding middle class. Fast-food market in India is estimated to rise by 50 per cent from 2015 to reach $25.7 billion in 2020, as per Euromonitor International. With a population of 1.3 billion and an annual economic growth rate of over 8 per cent, India has a big potential for the paper and paperboard container market, backed by increased demand in the food service industry resulting from the expansion of the middle-income class. Also, the shift from plastic to paper to alleviate the solid waste problem will support market growth.
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Vol. 9, Issue 10 - March - 2017
TRADE NEWS
Union Budget refers state governments to denotify perishables from APMCs
n a passing reference, the Union Budget said that the state governments will be urged to denotify perishables from APMCs, the food processing industry thinks there is dire urgency of reforming the agricultural marketing sector. In his budget speech Finance minister Arun Jaitley said, "Market reforms will be undertaken and the States would be urged to denotify perishables from APMC. This will give opportunity to farmers to sell their produce and get better prices.". There is also proposal to integrate farmers who grow fruits and vegetables with agro processing units for better price realisation and reduction of post-harvest losses. A model law on contract farming would therefore be prepared and circulated among the States for adoption. However, the food industry pointed out that contract farming act does not exist in many states. Even in those states that allow direct marketing of their produce by farmers, the APMCs insist on paying the market charges and harass farmers,
Indian food anticipates receiving optimistic response from SA market
complained the industry veterans.
If fruits and vegetables are removed from the APMC regulations, farmers and processors will benefit immensely. Companies will be able to pass on the innovative technologies, good agricultural practices and supply agricultural material to the farmers. Enforcement of the obligations under contract farming is an issue in the states, where contract farming is already in place. However, the processing industry thinks that it is obvious in the country like India where majority of the farmers have small holdings. Agricultural marketing is a state subject and the central government had first circulated the model APMC Act in 2003 for the states to adopt it. Yet, close to 50 per cent of the states have not made necessary changes to their respective state agricultural marketing acts.
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ndia is the third largest food producer in the world with outstanding competitive strength in food processing. The Indian food producers are very optimistic that their products will receive an encouraging response in the South African markets. The exhibitors were in the country for three days to display their products in different restaurants in Gauteng. Food products exports has
been growing at the rate of 20 per cent per annum in the last decade. Department of Trade and Industry said the Indian food producers’ move to promote their products in South Africa will not have a negative impact on local producers. The country does not have food products to cater for all seasons and this is where foreign countries come in. Industry Director of Export Promotion, Yandeya Mashau said, “What we need to do as two countries we must look at the areas of complementarity. Obviously South Africa will be good in the production of certain goods in certain industries which India does not have and vice versa.” Though there are some trade barriers, the Indian government has now begun brand promotion. Indian Food producers are optimistic about their products in South Africa. Vishnu Kumar said their products are being distributed to other African countries, but this is the first time in South Africa. "We are starting to explore a relationship in South Africa and there are a lot of responses we are getting and the market is large like in India. So, we are home away from home we are also now starting to sell oils. These oils have the best oil ratio. You can have several cooking in one go. It is one of the best-known oil known to human beings. It is very good for the heart and the Japanese use this oil for cooking." SumeetSaluja said their products are mainly targeted for Indian communities. "We specialise in salt, Indian rice spices and groceries. This is mainly Indian community in South Africa. We want to reach the Indian community, African and South African community. Already similar products are available we are bringing our brand."
Rs 250 crore investment by Wai Wai noodles; to open restaurants in India
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akers of the popular Wai Wai noodles, Nepal's CG Foods plans to invest Rs 250 crore in India to open quick service restaurants (QSRs) in next 5 years.CG Corp Global has plans to open 1,500 noodle bars across the world under the brand 'Wai Wai City', has collaborated with Franchise India to roll out stores in India.However, the company did not specify the number of outlets it will open in the country. CG Corp Global Executive Director Varun Chaudhary said, “With this new format, we offer whole new world of taste and flavours. For us this is the beginning of an exciting journey. Wai Wai City will be spread across various formats - food courts, self-standing kiosks, standalone outlets, highway format etc.” CG Foods announced a foray into the European market by opening its first manufacturing plant in Serbia. Positioned strategically at Ruma in Serbia in Central Europe, the Wai Wai plant will help the company cater to the neighbouring countries. With this plant, CG Foods' total units producing Wai Wai noodles has gone up to 15, of which 8 are based in India.
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
TRADE NEWS
Nestle India to diversify in Commerce Ministry plans premium coffee, cereals segment merger of commodity boards
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MCG firm Nestle India is looking to diversify into new segments like premium coffee business, pet care, skin health and cereals as it looks at 2017 as a "year of aggression". It has also planned to consolidate its offerings and adding new categories so as continue with double digit growth. Nestle India CMD Suresh Narayan said, “There are so many categories in which we are not in. We don't have a premium coffee business. Expresso and dolce gusto is not here. Our pet care is not here. Cereals is not here, in healthcare we are here but it is very small. Skin health we are here but its relatively very small. These are potentially the businesses." As part of diversification plan, the company has launched 35 products in last six months and may remove some of those which are not performing well. "I would see consolidating of the portfolio, removing some which we believe that it’s not working or its too small, adding some and probably preparing ourselves for the new categories," Narayan said. Nestle, which now owns skin care brand Galderma is also planning to be a player in the segment. "In India, we have relatively small presence and there are plans to expand that portfolio as well," he said,
adding that "these are going to be more specialised products". Galderma was a Joint venture between Nestle and L'Oreal and then few years back it acquired stake from French cosmetics company and made it Nestle Skin Health. "On health side, we have a wide range globally and India side we are only one product used for post-operative care. But there is a whole range," he said.
Narayanan said, "Nothing is impossible. We would continue double digit growth. Let's hope that it may happen." For 2016, Nestle's net sales were up 12.75 per cent to Rs 9,159.28 crore as against Rs 8,123.27 crore a year ago. "I would like to call it as year of aggression with purpose.” The company would also expand more offering in snacking category under Maggi brand. "You would find more offering in Maggi coming whether in the traditional noodles route or it would be value up of noodles as well," he said. Contribution from chocolates last year was around 15 per cent. "I would be happy with 25 per cent coming out from Maggi over the year, that's the goal. I do not want to substantially delink it and the reason new products have been launched to buffeting in the game. Now chocolates and confectionery is adding more and growing every quarter," he said.
Capital Foods aim to achieve Rs 500 cr revenue this fiscal
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MCG firm Capital Foods, owner of Ching's Secret brand of instant noodles and masalas, is targeting a topline of Rs 500 crore this financial year and expects 40 per cent increase next fiscal. Capital Foods, Managing Director Ajay Gupta said “this year we will close at Rs 500 crore and next year we are looking at a turnover of Rs 700 crore. We are growing at a CAGR of 40 per cent."
Capital Foods sells Ching's Secret brand of instant noodles, masalas, sauces, and Smith & Jones range of ketchup and ginger garlic paste. Masalas contribute around half of the company's revenues. "The soup and noodles is peripheral to us. Masalas
contribute around Rs 250 crore out of the Rs 500 crore. As a category, masala is going to become Rs 1,000 crore for us in the next three years," he said. Capital Foods is present in 11 states, with Maharashtra and Gujarat accounting for 45 per cent of its sales. It plans to enter tier III and IV cities in the next two years. The firm also plans to add two new facilities to its existing seven at an investment of Rs 75 crore. Gupta said “We are doing a plant at Panipat and one more at Vapi, to manufacture sauces, which will be commissioned in the middle of this year. The cost of the plants would be roughly Rs 75 crore.” Capital Foods also exports frozen parathas and naan, Gujarati frozen vegetables and frozen fruits, under the brand Swad, to cater to the Indian diaspora. Gupta said exports contribute Rs 70 crore to the overall revenues. It has earmarked Rs 75 crore for advertising for 2017-18. "This fiscal year we spent Rs 70 crore on advertising and next year we plan to spend Rs 75 crore," he said. The company is also looking at inorganic growth and is scouting for acquisitions in the same product categories.
Unilever shares slide after Kraft Heinz withdraws $143B bid
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fter rival Kraft Heinz withdrew a USD 143 billion takeover offer, the shares in Unilever, the owner of brands like Hellman's, Lipton, and Knorr, are down sharply. The companies in a joint press release stated that Kraft Heinz has "amicably" abandoned the offer. Shares in Unilever slumped 6.5 percent to 41.91 euros in Amsterdam, one of the places they're listed. They'd jumped 14 per cent. The deal would have combined Kraft Heinz products such as Oscar Mayer, Jell-O and Velveeta with Unilever's stable of brands, which include food as well as other consumer goods like Dove soap and Vaseline. The merged company would have rivaled Nestle as the world's biggest packaged food maker by sales. Analysts say Kraft Heinz, co-headquartered in Chicago and Pittsburgh, is still in the market for
acquisitions. The fact that it bid for all of Unilever and not just its food business indicates that Kraft Heinz is potentially open to acquiring other packaged consumer goods. Unilever, which has a head office in London and multiple stock listings, rejected the offer on Friday, but despite that, Kraft Heinz said at the time that it was still interested in the deal. Such acquisitions might not lead to big changes that customers would notice on supermarket shelves, but shifting tastes are partly driving dealmaking in the food industry. Part of the challenge is the proliferation of smaller food makers marketing products that seem more wholesome, which makes it harder for the established companies to drive up sales simply by selling more of well-known products or by raising prices, as they have in the past.
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he Commerce Ministry is planning merger of the commodity boards and set up an umbrella organisation to improve production and exports of plantation crops like tea, coffee, and spices. Some of these boards were set up way back in 1940s and their merger could help in harmonising their activities and in turn, enhance the quality and boost exports. The five commodity boards, under the Ministry of Commerce, are responsible for production, development and export of tea, coffee, rubber, spices, and tobacco. A senior commerce ministry official said, “India has a huge potential to boost agri exports. One board will provide better services. So, we are working to form one specialised body with different verticals.” The Coffee Board is a statutory organisation constituted under the Coffee Act, 1942. Similarly,
the Rubber Board was constituted under the Rubber Act, 1947. Tea Board was set up on 1st April, 1954 under the Tea Act, 1953. The Tobacco Board was constituted in January, 1976, while the Spices Board was formed in February, 1987. These crops play an important role in the economic growth as they contribute in the country’s exports and create huge employment for people. But dip in global demand and prices have impacted shipments of some of these commodities. In December 2016, exports of tea and tobacco recorded upward growth, while shipments of coffee and spices grew by 15 per cent and about 3 per cent, respectively. Agri-products account for over 10 per cent of the country’s total exports. To boost agri-exports, the Commerce Ministry has asked exporters to explore new markets and ship value-added products.
To enhance India's trade with Egypt, CII delegation goes to Egypt
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eeking to enhance India's trade ties with Egypt, a 17-member business delegation has gone to Egypt to participate in a seminar to scout investment opportunities in the country. The Confederation Indian Industries (CII) delegation was led by Ajit Gupte, Joint Secretary, Ministry of External Affairs, and Government of India is in Egypt, at the invitation of Federation of Egyptian Industries (FEI). The delegation members are drawn from various sectors including agri-business, infrastructure, chemicals, power, and food industry and business services. During their visit, the delegation called on several Egyptian Ministers including Minister of Trade and Industry, Minister of Petroleum and Metallurgical Wealth, Minister of Electricity and Renewable Energy and Minister of Transport. The three-day visit of the CII delegation is a part of the efforts to boost the trade relations between the two countries, spanning across diverse sectors. They also met senior officials from General
Authorities for Investment and Free Zones (GAFI) and Suez Canal Economic Zone Authority. The delegation attended India-Egypt Business Seminar organised jointly by the Embassy of India in Cairo, Confederation of Indian Industries (CII) and Federation of Egyptian Industries (FEI). The seminar deliberated upon various trade and investment opportunities between India and Egypt. It was attended by business persons from various Egyptian business chambers and government officials. India has a significant economic presence in Egypt with over 50 companies and joint ventures and an investment exceeding USD 3 billion. Indian entrepreneurs are optimistic about the long-term potential in Egypt and look forward to mutually beneficial win-win collaborations. India is the ninth largest trading partner for Egypt, with 12th largest source for import and seventh largest destination for exports. The government and business community in both the countries are working closely to promote and expand bilateral economic relations.
ASSOCHAM urges govt. to reduce customs duty on frozen seafood, poultry
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SSOCHAM has urged the Union Government to reduce customs duty on chilled and frozen seafood from existing level of 30 per cent to 10 per cent to bring down food inflation and satiate high demand for seafood in India. ASSOCHAM in its pre-budget memorandum (indirect taxes) submitted to the Centre stated "Local fisheries will not get affected by imports because sea food availability in India is much lower than its demand." There are many factors that could boost the demand for frozen chicken and seafood products like affordability, rising health consciousness, increasing consumer awareness and more women getting into jobs should help enhance the demand. Secretary General of ASSOCHAM, D S Rawat said “High import duty makes it unviable to bringin a variety of sea food products available globally which shall reduce food inflation tremendously and provide much-needed proteins to Indians at cheap cost.” ASSOCHAM also suggested to the Union Government to reduce customs duty on chilled and frozen poultry meat (chicken) to 20 per cent
Beverages & Food Processing Times
for whole chicken and that in parts as it is unlikely to destabilise the Rs 40,000 crore Indian poultry industry because majority of Indian market prefers live poultry over frozen food."Though chicken is a basic non-vegetarian food, but import duty on chicken products is as high as 100 per cent on its parts as such India is not able to import chicken" as per their pre-budget recommendation. Prices of chicken produced in India are mostly much higher than that in rest of the world as its cost is decided upon its production, the chamber has requested that it should be based on international prices. "This shall have huge impact on food inflation," it said.
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RETAIL NEWS
GMV of MobiKwik food vertical would reach USD 400 million by 2017
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ndian mobile wallet major, MobiKwik said the gross merchandise value (GMV) of its food vertical would reach USD 400 million by the end of 2017 and is eyeing a 200 percent growth in footprint, as it expands its reach in the online and offline segments pan India. The rising eating out culture and changing eating habits open a huge opportunity for digital payments in the sector. Users can load money in their MobiKwik wallet either through net banking, cash deposit or by using their credit/debit cards. The company has over 4.5 crore users and 14 lakh merchants in India. Restaurants who have already gone cashless with MobiKwik include Dominos, Burger King, SagarRatna, SarvanaBhavan, Olive, Soda Bottleopenerwala, Fatty Bao, Monkey bar, Bikanerwala, Chaayos, Wang's kitchen, Bercos,
Taco Bell, Slice of Italy, Junkyard cafe, Vault cafe, Wow Momos, Pan India foods (Gelato Italiano, Coffee Bean and Tea Leaf), Mirah hospitality (Rajdhani, Falafal), Amici, Pita Pit, Havmor, Eatsome and Rollsmania. The company also powers payments at Zomato, Swiggy, Food Panda, Faasos and others. Chief Business Officer MobiKwik, Vineet Singh said, "We are observing massive growth throughout the food sector. Be it online food ordering or eating out at an outlet, masses in India are developing a habit of paying cashless within seconds’’. Food vertical is going to be one of the key growth drivers in 2017 for MobiKwik and the company is working aggressively to cover Pan-India food outlets and register a 200 per cent increase in footprint in the year. The sector is expected to contribute over USD 400 million to the GMV in 2017. According to an industry report, the growing trend of eating out in our country is being led by young population and increasing disposable income. The quick service restaurant chains in India are expected to grow to USD 5.6 billion by 2020. Overall, India's food market is expected to grow to USD 240 billion by 2020.
'BigBasket' touches 25,000 customers in Coimbatore
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ndia's largest online supermarket BigBasket has successfully catered to 25,000 customers in Coimbatore in a short span of 1 year. It offers convenient, one-stop online shopping for high-quality, fresh products at competitive prices delivered right to the customer's doorstep. BigBasket has about 4 million customers nationally and currently receives approximately 50,000 orders each day. Consumers can buy groceries and household items by logging on to bigbasket.com and choosing Coimbatore as the location, or by downloading the Apple and Android compatible BigBasket app to place an order. BigBasket is a very convenient process and customers can choose from a huge range of items including fruits and vegetables, staples, household, personal care, imported and gourmet. It claims to have the best service metrics in the country with 99 per cent order accuracy and 98 per cent on-time delivery. Sales from BigBasket's private label are
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expected to go up to 40 per cent of turnover over 6-8 months from 35 per cent currently.
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esearch firm RedSeer said, India's online food delivery market comprising aggregators and internet kitchens grew at 150 per cent in 2016 with an estimated GMV of USD 300 million, despite low investor sentiment and players scaling down operations or shutting shop. “The Indian online food delivery industry experienced many roadblocks in its growth story in 2016 with multiple players scaling down their operations or shutting shop. This was also visible in low investor sentiment wherein the industry saw a total funding of less than USD 80 million in 2016 against USD 500 million same period year before,” RedSeer said in a report. Despite this, the industry grew at 150 per cent year-on-year last year with an estimated GMV of USD 300 million in 2016, it added. For restaurants, the online platforms have helped increase their reach and this additional business source has improved their resource utilisation, it said. Besides, customers have also started to opt
With our guaranteed order fill rate and noquestions-asked return policy, BigBasket has become a preferred choice for Coimbatore's supermarket shoppers. Fruits and Vegetables, staples and household items see the maximum demand among the people of Coimbatore. In the city, 75 per cent of the orders are received through the app."
The Indo-Nissin distribution tie-up, therefore, dovetails into Future Group founder Kishore Biyani's wider strategy to generate Rs 20,000 crore in sales from in-house brands by 2021 and establish itself as a standalone consumer-goods company by enhancing the brand recall of its private labels. We are taking our products and brands to local general trade which accounts for nearly threefourth of the overall FMCG sales. The scale of our reach will now match the large portfolio that we have created over the last decade," said Devendra Chawla, CEO at FCL. The consumer company has 27 brands under 65 categories, including food brands such as Sunkist, Karmiq, Golden Harvest, Fresh & Pure, Premium Harvest and Tasty Treat.
for multiple choices offered by online platforms in place of ordering food by calling individual restaurants. "Share of online food delivery for partner restaurants (restaurants associated with online delivery platforms) covered in study has reached 30-35 per cent of their total business and these numbers seem to be growing rapidly by the day," it added. With over 80 per cent of orders coming in from top five cities (out of more than 20 cities where online food delivery is active), the established players are now focusing on achieving operational efficiencies and profitability in these cities and have limited their expansion to newer markets. RedSeer Consulting founder and CEO Anil Kumar said, "With customers and restaurants both embracing these online food delivery services, the order volumes have shown a healthy growth but the fundamental issue of unit profitability and operational efficiencies need to be addressed to build a sustainable business in this sector."
Amazon seeks govt approval for e-retail food business in India
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lobal e-commerce giant Amazon has sought government's approval for online retailing of food products produced and manufactured in India. The US-based company has proposed to invest about Rs 3,400 crore for the purpose. The Commerce and Industry Ministry are considering the application.
chain. We have sought an approval to invest and partner with the government in achieving this vision." However, they declined to comment on the investment details.
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. Amazon said in a statement: "We are excited by the government's continued efforts to encourage FDI in India for a stronger food supply
It has also been investing in areas like marketing and promotions and expanding infrastructure in India. Betting big on the growing e-commerce market in India, its chief Jeff Bezos had said the company will invest $3 billion in India, taking its total investment committed here to over $5 billion.
Mr. Sundar R, Regional Business Head, BigBasket said “We are very excited to have crossed the 25,000-customer mark in Coimbatore. We have received an overwhelming response from the residents of this city and sincerely thank each one of you for believing in us. It gives us the confidence that customers here have found our services and quality superior to others in the market.
Nissin Foods to serve up Future Group’s tasty treats at kiranas
uture Group, the pioneer of organised retailing in India, has found the right ingredients in the inventor of Asian snackfood staples to serve up a tasty treat beyond its bailiwick – at street-corner groceries across the country. Future Consumer (FCL) that sells its own brands of snacks, cookies and other packaged foods at its Big Bazaar and Easy Day stores, will harness the distribution muscle of the Indian unit of Japan’s Nissin Foods to reach out to buyers beyond the 800odd own outlets that currently stock FCL products. The arrangement is a novelty in India, where about two decades of organised retailing have failed to erode the dominance of neighbourhood grocers in the $600-billion-a-year market.
Online food delivery industry in India grew 150 per cent in 2016
Currently, the government permits 100 per cent FDI in the food processing sector. As per norms, a foreign company can open a whollyowned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online. Amazon currently operates an e-commerce marketplace in India and competes with the likes of Flipkart and Snapdeal. Though the regulations allow 100 per cent overseas capital in such platforms, these entities cannot sell products themselves. Amazon has been optimistic on India by introducing new features for customers and sellers, even though the region continues to weigh heavy on the US-based company's finances.
Patanjali Ayurved on aim to establish 5 lakh retail outlets
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charya Balkrishna, close aide and major stake holder of Baba Ramdev's Patanjali Ayurved said the company wishes to expand its market network to 5 lakh retail outlets across the country and the work is underway. Balkrishna signed an agreement with the AP government to invest Rs 1,000 crore to develop a food park in Vizianagaram district. “We are searching for educated youth who can open our store in their area but they must have full confidence on Ayurveda and should spread the message of this great Indian tradition.”
products including fast moving ones like honey, beauty products and health drinks are to be augmented. Balkrishna said, “There is no shortage of demand for our products but we have to step up our production capacity for which we are planning to set up more units across the country. Many southern states have invited us to set up plants.” They also wished to enter tourism projects and develop yoga centres, health clinics and naturopathy centres. “Let the government offer us a good piece of land, I am ready to enter into health tourism.”
Patanjali Ayurved is very eager to invest in both AP and Telangana as the products’ response from these states are ‘very encouraging’. The production capacity of more than 100 Ayurveda
Patanjali Ayurved presently has 5,000 distributors and has tied up with major retail chains to sell more than 100 products.
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
SPICE NEWS
Traceability ensures monitored farming, an effective food supply chain and transparency
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hairman of European Spice Association Nils Meyer Pries said a packed spice conquers the world when it manages to take the consumer directly to its origin and thus wins his heart. He said this at the International Spice Conference hosted by the All India Spices Exporters Forum (AISEF) at Kovalam. When the produce will be under the scanner of the consumer and health agencies for traceability, it can dispel all concerns on safety and quality standards and thereby ensure sustained growth of the spices sector. Digital platforms could be used to manage traceability by collecting, storing, processing and disseminating data regarding farming, harvesting, processing, packaging, and distribution. Costeffective numeric and alphanumeric bar coding, matrix bar coding and other labels when linked with automated systems or mobile technology allow immediate retrieval of product information. Innovative coding can help statutory authorities’ consumers, health, food safety officials or even consumers easily track down growers, field, processing and packaging operations and
movement of spice products through the supply chain, including transit and storage. Executive Director of American Spice Trade Association, Cheryl Deem said that technological innovations in traceability have enabled quick and accurate identification of contamination, pesticide residue and other toxins and causes of food-borne illnesses. Traceability ensures monitored farming, an effective food supply chain, operational excellence, and transparency. It also helps cut down inspection time and many challenges in exports, food safety, quality control, and certification. In the changed world where consumers are entitled for informed decisions, traceability boosts overall consumer satisfaction and the sustainability of the spices sector, she added. Geemon Korah, CEO, Kancor Ingredients, emphasized on the need for different sectors of the food industry to work together towards establishing proper and harmonised maximum residue limits. KS Thyagarajan of BASF India led the session on the necessity of quality at source and the role of the inputs industry in saving and improving the crop and complying with residue
Researchers from the world interested in wild species found in India
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eading scientists from different countries have shown interest in collaborations with the premium research institute Rajiv Gandhi Centre for Biotechnology (RGCB), to enable better understanding of genetic properties of native Indian plant species and incorporate the findings to improve crop productivity.Scientist from RGCB, E V Soniya, said “We are already working in a detailed manner on several spices and are open to collaborations with these foreign scientists who can lend us their know-how to create value additions to our native spices like ginger and pepper.” Molecular plant biologists from nearly 20 countries including Canada, Belgium, Germany, Israel, Spain, and Australia participated at a recently concluded four-day conference organised jointly by RGCB and the European Molecular Biology Organisation (EMBO). Dr Takayuki Tohge, a Japanese scientist who
works with Germany’s Max Plant Institute and with an interest in folk medicines, expressed his interest in expanding his research into the spices found in Kerala. “My interest is in polyphenonyls and I have worked on tomato, a little bit of maize, potatoes and beans among other crops, testing to identify the beneficial compounds that can be used to cross breed and engineer disease resistant and stable crops. I am interested in extending it to spices like ginger and pepper among others as well,” said Tohge. According to Jennifer Ann Harikrishna, Professor, Institute Of Biological Sciences, Malaysia, global climate change and various fungal diseases adversely affect the cultivation of banana crop in the world and researchers are now looking into native species of bananas. Harikrishna said, “India, like Malayasia, has a lot of native varieties of bananas and various plant scientists around the world are looking at the wild genetic varieties to understand how to better protect the crop from funguses and virus attacks.” “We don’t have any ongoing collaborations, but will be interested for future. Our current research is on how to grow saline tolerant bananas because while coconut and palm trees can grow in salt water, bananas cannot and people both in India and Malaysia are fond of their bananas,” she said. Prof BabuValliyodan from University of Missouri said that, “India has got a good potential for cultivation of soybean. We need more genetic sequencing research to get maximum yield.”
Sri Lankan brand Spice Island comes to India
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IMCD India Private Ltd.Mob: +91 - 9167836974, Email: nitin.moily@imcd.in
Beverages & Food Processing Times
beauty retail venture NewU by homegrown FMCG major Dabur is bringing Sri Lankan ayurvedic beauty brand Spice Island to India to strengthen its portfolio. Spice Island will exclusively be sold at NewU outlets and will have a range of premium skin care, bath and body care, and hair care products. Chief Operating Officer of NewU Vijay Shanker said, “We are confident that the Spice Island range will meet the aspirations of the modern-day consumer and further establish NewU as the preferred destination for all beauty care needs of the Indian consumer.” The renowned Sri Lankan brand will help people re-connect with Ayurvedic means of skin care and healing. The Spice Island range will include shampoos, body butter, day cream, night cream, shower gels and body lotion priced in the range of Rs 649 to Rs 1,399. The company said NewU plans to expand the Spice Island range to host of other beauty products such as face wash. This is the second international brand to be introduced by NewU that presently operates over 70 stores in India. Prior to this, NewU had launched Jaquline USA in India with a range of Nail Care and Nail Styling products. NewU stores are lifestyle retail stores under the company name of H&B Stores Ltd is a 100 per cent subsidiary of Dabur India.
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Vol. 9, Issue 10 - March - 2017
NEWS
There is tremendous scope for the food sector to grow on a high scele
Jasvinder Bajaj Chairman Punjab Sindh Dairy
Q. 1} How has the food processing industry grown in the past decade? A) It has grown very nicely and the demand is always going to be there. There is lot of scope and potential in this industry.
Q. 2} Tell me about your company’s growth from its inception. A) The company was established in the year 1969. Since our beginning, we have grown leaps and bounds, also seen several changes in the sector as well. Initially we had semi-automatised systems and now we have fully-automatised systems due to which many HNI clients have approached us. We are catering to many big institutions. Q. 3} What growth percentage do you expect by the end of this fiscal year? A) The growth percentage expected by the end of this fiscal year is 20-22 per cent. Q. 4} Do you think the government has taken enough measures and initiatives for the food processing industry? What more can be done for this industry? A) The government is taking efforts. There are many sectors which are synchronised to make the food-processing unit. The major issue is one pocket is being taken care of and the others are neglected. It is necessary that there should be proper synchronisation and the government must look into this matter.
For example, the issue of GST, which will help to promote the business. When it comes to food processing and dairy, some parts of food processing units will benefit, but for the dairy segment it will be a major setback. Because now we are at six per cent, minimum slab for GST is 12.5 per cent. Taxation will increase and that will hamper the farmers, relatively it will have consequences on the other sectors as well. The government also introduced some subsidies, but these subsidies are mostly gained by only those companies that owned by the politician class. The private sector does not even have the authority to approach the department for any subsidiary. The government is taking initiatives, but only for a specific segment that have power in their hands. Subsidies are being utilised by them and does not reach the private sector & small scale industries. The small and medium enterprises are not benefitted from any government subsidies. Q. 5} Per capita consumption of food industry is increasing year-on-year, how do you view this industry in the next 5 years? A) In India, we have a pattern of consuming milk products like ghee, butter, sweet dish, and we need it as dairy supplements also. There is tremendous scope for the food sector to grow on a high scale and the rate will increase every year. Q. 6} Are we prepared to cater to the growing demand in food processing industry in terms of good quality packaging and processing etc.? A) There are certain parameters which are governed by each other. We are prepared, in a sense that co-operatives are making efforts to cater to the masses. Nobody is catering to the classes
or product, or looking up in international market, or some niche product. Everyone is interested in making more profits in less quality, and the price issue has become a major concern for companies today. Q. 7} FSSAI has laid down many stringent food safety norms for the Indian food processors. Do you think our products have met global standards now? A) If you look at the private sector, they are making efforts to reach the international standards. Some companies like Amul, Nandini are trying their best to cater to the international bodies, but the dairy industry is limited to few such companies. These few want to establish their brand internationally. Other small and medium scale firms do not even get a chance to cater to the international market, because of the stringent norms. There is large scope for cheese and other products also made in India, and which could be imported by foreign countries. The technology and kind of approach is such that they are unable to make an export of their product. FSSAI does not follow their own regulations in their own canteens. Everything is hap pening beneath their nose, corruption is so rampant. They have the right to fine or prosecute directors with a sum of 1-2 lacs if there is violation of any rules. Further the units can even be closed. No doubt, things are improving, but both the corrupt and non-corrupt sector are growing.
Beverages & Food Processing Times
5.8 per cent drop in onion output this year
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he government projected 5.8 per cent fall in onion output at 197.13 lakh tonnes this year, while a slight increase is expected in production of potato and tomato. As per the first estimate released by the Agriculture Ministry, onion production is pegged at 197.13 lakh tonnes for 2016-17 crop year (July-June) as against actual output of 209.31 lakh tonnes last year. The output is expected to be down due to fall in acreage to 11.88 lakh hectare in 2016-17 from 13.20 lakh hectare in the last year. Any reduction in onion output is likely to put pressure on domestic supplies and prices. Among other key vegetables, production of potato is estimated to be higher at 438.83 lakh tonnes this year as against 434.17 lakh tonnes last year. Tomato production pegged at 189.11 lakh tonnes as against 187.32 lakh tonnes in the said period. Total vegetable production is estimated to be marginally lower at 1,685 lakh tonnes in 2016-17 as against 1,690 lakh tonnes last year. Among fruits, mango output is estimated to be 192.18 lakh tonnes in 2016-17 from 186.43 lakh tonnes last year. Banana production is estimated to be higher at 304.39 lakh tonnes this year as against 291.35 lakh tonnes last year. Total fruits output is expected to be higher at 917.28 lakh tonnes this year as against 901.83 lakh tonnes last year. The country’s total horticulture production is estimated to be marginally higher at 2,873 lakh tonnes this year as against 2,861 lakh tonnes last year.
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Vol. 9, Issue 10 - March - 2017
SPICE NEWS
India should adopt Vietnam model of spice cultivation to boost production
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.I. Ganagi, Chief General Manager, NABARD, Bengaluru has said that Vietnam has overtaken India as the leading producer of black pepper and its productivity has reached supreme proportions in a short span of time. Present at the inauguration ceremony of the national conference on ‘Strategies for sustainable spice processing’ at the Central Food Technological Research Institute (CFTRI), Ganagi said that Indonesia stood second and India has dropped down to third spot in pepper production.
Vietnam never existed in the spices market 8 years ago, but today it stands at the number one position in pepper production. It produces 10 times of India’s overall production. Vietnam produces 2.5 tonnes of black pepper on an acre, he said. Indian spice producers must adopt new strategies to increase output and mono-cropping was an alternative to double the yield. Ganagi said, “It is time we analyse what is lacking in us to become a leading
Beverages & Food Processing Times
spices producer. What is affecting our cultivation practices or whether diseases are affecting our production should be looked at. We should reach 75 to 80% of Vietnam’s production in the years ahead. Karnataka has overtaken Kerala in black pepper production. Lack of productiveness or farmers’ interest may be the reason besides climate change since Kerala was currently facing drought for the first time after several years. Ganagi stressed that demand created and plan production strategies since climate change has affected spices production. Pricing has become unviable. If farmers want to continue in farming, they must get a good price for their produce, he said. Regarding the doubling farmers’ income in 5 years, he said it took 14 years for the farmers’ income to double in the past. Income can be doubled if productivity goes up, expenses are trimmed down and price constancy was assured. NABARD has supported 2,000 farmer producers’ groups and was also open to support cropspecific farmers’ organisations, including spices. NABARD was ready for direct funding to entrepreneurs willing to establish their processing units at the parks. Over 300 delegates, including academicians, growers, and scientists attended the two-day conference.
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Vol. 9, Issue 10 - March - 2017
PRESS RELEASE
Bosch presents complete system solution for jellies at Interpack 2017 Hygienically designed system solution for easy cleaning High-speed processing, depositing and packaging equipment Single-source solutions provider offering increased levels of support
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or jelly producers looking for a hygienically designed complete system solution, Bosch Packaging Technology will showcase its latest developments at Interpack 2017. On display at booth A31, Hall 6, will be the Rapidsolver – the dissolving solution for depositing masses – the mogul plant for starch moulding, the drying room and the vertical form, fill and seal machine for high-speed packing of jelly products. With over 80 years of experience in the sector, Bosch developed a new system solution to address key market requirements, such as hygienic operation, reduced energy consumption and product waste, high output within compact footprint and ease of use. The company’s full portfolio for jellies includes technologies from raw material weighing and dosing to end-of-line packaging. Martin Tanner, director business development and marketing, product division food, Bosch Packaging Technology, comments: “As a singlesource solutions provider, we make sure to offer best-in-class complete system solutions that are designed for easy cleaning, operating and maintenance. The latest solution to be shown at Interpack has several patent-pending technologies to boost output and significantly enhance energy efficiency.” Effective processing and depositing of jelly candies At Interpack, Bosch will debut its upgraded Rapidsolver BLK 2500 BR for dissolving jelly masses, featuring a patent-pending heat recovery system used to preheat the mass, which offers
up to 50 per cent less energy consumption and reduced total cost of ownership (TCO). In addition, energy-saving dissolving is achieved through the optimized design of the machine, allowing steam pressure to be reduced by 0.3 bar, further relieving thermal stress on the product and preserving its quality and taste. The machine’s new hygienic design enables shorter cleaning times by eliminating areas that can trap food residues and cause contamination.
Minimizing downtime and enhancing food safety Hygienic design is also in the heart of the mogul plant, the HLM 35 Roto Step (RS), and the drying room from our partner Pinco SA – both made of stainless steel with multiple easy-to-clean features. The lateral movement of the depositor into the mogul’s frame allows for the clean-inplace function, reducing the maintenance time and
protecting the tray transport system. Hygienically designed sieve baskets further reinforce food safety efforts – a smooth surface and eliminated edges prevent accumulation of product residues and enhance gentle handling of jellies. With up to 35 trays per minute, the HLM 35 RS`s integrated Roto Step advancing system features individual tray movement for high-speed starch moulding of gummy products. State-of-the-art hygienic packaging design To meet the growing needs of confectionery manufacturers for high-speed, hygienically designed packaging equipment, Bosch has extended its SVC vertical form, fill and seal platform with the new SVC 1820 BH bagger specifically modified for the industry. It is built with a stainless-steel frame, while its surfaces are rounded, tilted, and have as few flat parts as possible to prevent food particles from being trapped. There are no corners or crevices, significantly reducing the possibility of bacterial build-up and facilitating cleaning. The SVC features industry 4.0 solutions for increased productivity and improved operator guidance: An integrated Yamato multihead weigher, coupled with patent-pending sensorcontrolled drop-time detection, allows to automatically adjust machine settings for product transfer optimizing speed and enabling the highest possible output per product type. Additionally, the next generation Human Machine Interface HMI 4.0 and an innovative format part management system reduce the risk of operator error by indicating
Beverages & Food Processing Times
whether all format parts are in place and match the selected bag configurations, allowing easy set-up and fast changeovers for increased uptime. Customized services for all maintenance strategies A comprehensive range of services to improve machine efficiency and productivity completes Bosch’s line competence. The focus is on solutions for preventive maintenance as well as services to eliminate unwanted machine conditions as quickly as possible. To this end, Bosch provides a worldwide service network with qualified field service technicians who offer regional support. Thanks to digital services such as Remote Service, which is now supported by a visualization and chat feature, or the mobile version of the E-Portal, which will be presented at Interpack 2017, customers receive targeted support regardless of their location. Bosch will further showcase the versatile training portfolio of the Bosch Packaging Academy. Apart from new assistance solutions, Bosch will demonstrate virtual training concepts enabling manufacturers to acquire demandoriented know-how for machine operation and maintenance. Bosch will also illustrate how Preventive Maintenance Parts Kits and tailormade maintenance agreements help to proactively minimize unplanned downtime.
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Vol. 9, Issue 10 - March - 2017
PACKAGING NEWS
Sonoco acquires Peninsula Packaging for $ 230 mn
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onoco, one of the largest diversified global packaging companies, has signed a definitive agreement to acquire Peninsula Packaging Company for approximately $230 million in cash. Peninsula, which is owned by a fund managed by Odyssey Investment Partners LLC, is a leading manufacturer of thermoformed packaging for fresh fruit and vegetables found in the fast-growing perimeter of retail supermarkets. The transaction is subject to normal regulatory review and is expected to close by the second quarter of 2017.
Founded in 2001, the California-based Peninsula Packaging has 2016 proforma sales of approximately $190 million and operates five manufacturing facilities, four in the US and one in Mexico. The majority of its business is focused on packaging for a wide range of whole fresh fruits, pre-cut fruits and produce and prepared salad mixes, as well as baked goods. Peninsula’s customer base includes most of the leading household names for fresh fruits and vegetables found at retail. “Our goal has been to strategically expand our consumer packaging portfolio to grow our
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offerings in both the centre of the store and the fast-growing perimeter. With the addition of Peninsula, Sonoco will nearly double its thermoforming packaging capabilities and occupy a strong packaging position serving the perimeter in fresh food products, combined with our existing offerings in the center of the store, including those serving a range of frozen and shelf-stable foods,” commented Jack Sanders, president and chief executive officer, Sonoco. Over the past several years, supermarkets have reportedly spent $15 billion growing their freshly prepared options in order to increase sales of items along the perimeter of the store. According to a recent industry research study, perimeter store sales of fresh foods is expected to achieve a compounded average growth rate (CAGR) of between 6 percent and 7 percent over the next four years. “Combining Peninsula’s product lines with Sonoco’s packaging capabilities positions us extremely well to capture new growth in the rapidly expanding fresh and natural category, while greatly accelerating and enhancing our ability to offer our customers the most diverse consumer packaging formats and solutions in the industry. For example, this combination will allow Sonoco to deliver manufacturing and supply chain synergies gained from the connection between thermoformed trays and film lidding stock, which is an important customer differentiator,” said Rob Tiede, executive vice president and chief operating officer, Sonoco.
Comiflex and Uflex come together to manufacture CI flexo press
flex joins hands with Italy-based Comiflex to manufacture gearless CI flexo machines under a technology transfer agreement was signed during Drupa 2016 where Uflex exhibited. Ajay Tandon, Uflex’s President and CEO, engineering and new product development, said, “This is first time we are manufacturing CI flexo presses. Our first customer will be the converting division of Uflex.” The machine will be ready by April end. “Hopefully, it will be functional by the middle of the year. Once our converting division is satisfied with the machine, we will go the market.”
Tandon said while for now the CI drum and other critical parts are being imported from Italy, the company’s dependency on imported parts will be gradually reduced. “We will manufacture 80 per cent components in India and rest 20 per cent critical parts will be imported. Later, we will export components to Comiflex as well.” Gianfranco Nespoli of Comiflex said, “It was a mutual alliance because we have the technology and Uflex has production infrastructure. Uflex is our first and only overseas machine manufacturing partner.” The market is shifting from gravure
to CI flexo. In Europe, he said around 90% of packaging products were printed on gravure. Now, around 80% of products are printed on flexo. “Rotogravure is being used for very long-run jobs like pasta packaging.” India is a potential market for CI flexo. “In the last few years, the percentage growth of CI flexo is higher than gravure in India. India has very low per capita consumption of polythene/plastic. China is many times more and the USA is many times more than China. Consumption of plastic packaging in India is bound to increase,”
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Cosmo Films sets up 10.4-metre packaging film making line
adodara-based, packaging film maker Cosmo Films has commissioned its latest production line for 10.4 metre film at its factory near the city. Announced in 2015, the line was set up within the scheduled time limit and the projected capex for the same is Rs. 200 crore. This new line of production will raise the company's annual capacity by 40 per cent to 1.96 lakh tonnes from the existing 1.36 lakh tonnes. The company makes biaxially oriented polypropylene (BOPP) film, which find use in packaging, lamination, and labelling applications. The company said, the commissioned line is the most advanced line available in the market today in terms of its width and output and is the first 10.4-metre line to be installed in the country. CEO of Cosmo Films Ltd, Pankaj Poddarsaid,
The line is equipped to deliver both superior quality products with minimum scratches, oil or additive spots and high surface energy as well as consistent quality due to automatic changeovers. It is also capable of producing film as thick as 80 microns to cater to segments such as textiles, which require thicker films. This would cater to both the domestic and export markets. The new line is part of a series of expansions announced by the company in the last one year for both its India operations and its subsidiaries in the US and Korea.
Parksons Packaging's fifth factory inaugurated in Andhra Pradesh
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arksons Packaging have taken one step forward in their pan India quest with the inauguration of the company's extensive 10-acre plant in the Sri City industrial area, Andhra Pradesh. Chairman of Parksons Packaging, Ramesh Kejriwal said “This investment is in line with our goal of being a pan India packaging company. This will help us in achieving several of our 2017 plans out of several others, which is to convert 100,000 MT installed capacity in a space of 7,00,000 sq/ft.” The 70,000 sq/ft plant also houses a finishing line from Bobst that includes two die-cutters and foldergluers, plus a laminator and UV varnish machine from Wen Chyuan, laminator from Meiguang and a two-ply corrugator line from Champion. Apart from this, there is the Heidelberg Suprasetter, a sample maker from Zund and an ink kitchen from Siegwerk and Toyo. Kejriwal added, “One of our main goals is to become the most credible and transparent folding carton provider in India. And in the next 10 years, achieve a turnover of Rs 5,000 crores.” CEO of Bobst Group,Jean-Pascal Bobst who inaugurated the plant, shared the journey of the two companies thus far with 50 Bobst units installed. He said, “Our 20-year-long association
has only grown stronger, thanks to the values that drive us. Trust, respect, passion and performance is clearly shared and visible in the way Parksons team work every day.” Stephan Plenz, Head of the equipment segment and Member of the management board of Heidelberg, also the guest of honour said “We are very happy to be part of the Parksons family with more than 100 units from us already installed. This press (CX-102) investment shows that they do not just buy new machines but are pioneers in bringing the latest technology for packaging in India.” Managing Director of Parksons Packaging Siddharth Kejriwal said, “The strong foundation of customer support has helped us in setting up our fifth plant with infrastructure which can match up to the best in the world. Our attention now turns towards our Guwahati plant which is expected to open mid-2017. This shall make us truly panIndia.” The day long inauguration event and celebration titled ‘Sangam: Aspiration and Inspiration’ was marked by the company laying out their future ambitions for an invited VIP audience of five hundred which included print buyers, top brands, manufacturers, and vendors who are an integral part of the Parksons Packaging eco system.
Wellbound partners with USA-based Econocorp’s for end-of-line packaging kit
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Tandon said. In the last decade, quality of CI flexo printing has increased tremendously. “We are a beginner in CI flexo machine manufacturing. We are expecting to produce three to four machines in first year. Every sale of CI flexo printing press is a project and strike rate is very low, so being a manufacturer, you have to keep going,” he added.
o address the packaging challenges in supply chain logistics with systems that can prevent product damages in transit, Mumbai-based Impel Services has collaborated with the USA-based Econocorp for joint activities in South Asia.Impel, the packaging equipment arm of the post-press specialist Welbound Group, will sell and service Econocorp’s case packing, tray forming and cartoning machines in the region.
Tandon said first Uflex will sell the machines in India before going global through its network in more than 100 countries. “All the presses will be customised with 75% basic structure. Specifications are always different so it is risky to keep a machine ready. First the order and specifications are frozen then the machine manufacturing starts.”
Welbound’s Chief Technical Officer Suresh Nair visited Econocorp’s operations in the US to study the range of products that find applications in the end-of-line automation across different industries.Nair said, “Econocorp has products that address the requirement of small to medium size manufacturers in the US and I see a perfect alignment between the two companies with the technology on one side and application services on the other side. The Indian customers with multi-location units requiring medium yet varied throughputs will clearly identify with the Econocorp solutions.”Econocorp’s products stand out for the simplistic yet highly efficient design
Presently, around 100 Comiflex CI flexo presses are running around the world. In high-end CI flexo, there are around 25 imported presses in India. In 2016, around eight CI flexo presses were imported
“The high-speed line equipped with automated changeovers and automatic consumption of waste, will not only lead to an increase in power savings but also help the company with overall operational efficiencies.”
Beverages & Food Processing Times
that leads to high throughputs with minimal cost of ownership. International Sales Manager of Econocorp Alfonso Posada said “We are very excited to have the opportunity to grow our business in the large competitive Indian market with the right mix of a large technically qualified service team of Welbound.”With more than 50 years of experience in the packaging industry, Econocorp is one of the top manufacturers of case packing, tray forming, and cartoning machines. Director and CEO of Impel,Pallippuram Sajith said, “We will leverage our 100 member strong sales and service team to spread the benefits of the Econocorp solutions across the country. We will also use the marketing channels to discuss the benefits in automating the case packing, wrapping and for seeking the security of products in transit. Besides this, we also have our own range of case sealers with unique offerings that are finding acceptance among the brand owners in food and FMCG segment. We will be showcasing our entire range at Interpack 2017 in Duesseldorf.”
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Vol. 9, Issue 10 - March - 2017
TRADE NEWS
NASSCOM Japan expresses interest in tie-up with Assam govt.
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n a bid to boost Assam’s agriculture, food processing and tourism sectors, NASSCOM Japan Council has expressed its keen interest in a tie-up with the state government in the ‘Startup, Stand-up’ initiative. NASSCOM Chief Yukio Takeyari, leading a three-member Japanese delegation, called on Assam Chief Minister SarbanandaSonowal and expressed Japan’s interest to invest in ‘Start-up and Stand-up’ ventures and give a boost to Assam’s agriculture, food processing and tourism sectors. Sonowal, while welcoming NASSCOM Japan Council’s endeavour, assured to extend all support from his government that addresses various aspects to stimulate the growth of business ties, a statement said. Assam government is in favour of better collaborative relations with NASSCOM Japan Council to extend and clinch a coordinated
approach to boost the well-being of India and Japan, Sonowal said. “With this beginning, we will also aim to undertake activities which will make Assam a favoured destination of Japanese investments and make inroads for seamless communication between the two geographical entities.” Emphasising the need for student exchange and extensive people-to-people contact programme between Assam and Japan, Sonowal said the cultural and racial rapport between the two sides would further strengthen ties. Yukio Takeyari, who was accompanied by Matsubaya Store Company Limited CEO Takafumi Nishi and Future Venture Capital Company Limited Researcher Shiho Sakaguchi, also assured to carry forward the ties in various application areas.
Dhunseri Group takes over Twelve Cupcakes
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olkata-based Dhunseri Group is entering into the food space. It has acquired Singapore-based food start up Twelve Cupcakes run by local celebrity couple Daniel and Jaime Teo. Dhunseri acquired the company late December, just after it formed an equal joint venture with Thailands Indorama group for the latter’s north Indian PET plant venture, Micro PolypetPvt Ltd.
Twelve Cupcakes opened its doors in July 2011 and has since grown rapidly with overwhelming response from its customers. The reason for its strong following, is their brand promise to deliver only freshly baked cupcakes. Coupled with the use of quality gourmet ingredients, they do not cut corners in creating the perfect cupcake that is suited to the Asian palate. At present, Twelve Cupcakes have 17 outlets in Singapore. Dhunaka added, "Our plan is to take it to 24 by this year. We will start manufacturing bigger cakes that are suitable for wedding, birthdays and other such events. We will keep on adding cookies, brownies. We also plan to add other desserts at our outlets. In Singapore, we want to grow our business both organically and inorganically."
Before this Dhunseri has interest in tea, petrochem and real estate. CK Dhanuka, Chairman, Dhunseri Group said, "Apart from tea and petrochem, we now want to grow in the food space in India and abroad. We see a lot of opportunity in this area. The food business in Singapore is being spearheaded by my son Mrigank Dhanuka, who is the chairman of Global Foods Pte that acquired Twelve Cupcakes."
If the Dhanukas taste success in Singapore, then they will make an entry into the Indian food business as well. "We are already into tea, the most consumed beverage in India. We can develop our food business surrounding tea. However, these are early days. Let us see how the Singapore business pans out." The group is aiming to double the turnover from $5 million now by the end of this year.
Bühler invests and grows
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ühler showed a healthy performance in 2016. While continuing its policy of reinvesting profits to secure future development, the company has continued its growth path. Order intake in 2016 was up 3% to CHF 2.54 billion, compared to a decline of 4% in 2015. Turnover rose by 2% to CHF 2.45 billion, and profitability remained stable at 7.1% (EBIT margin). R&D investments were significantly increased. “For a company based in Switzerland, 2016 marked a real proof point considering the Euro/Swiss franc shift a year ago,” says CEO Stefan Scheiber. “In this context, we can be satisfied with these results.”
its position as the leading technology and solution provider in its industries. R&D investments were increased significantly by CHF 7 million to CHF 109 million, corresponding to a share of turnover of 4.4%. Bühler signed a partnership with Bosch to develop future IoT (Internet of Things) solutions. The company engaged with the start-up accelerator Mass Challenge and won the prestigious Nestlé Research Award. With its Networking Days held in August 2016, Bühler brought together 750 leaders of the global grain and feed industry to discuss and develop sustainable solutions that address global challenges such as malnutrition and energy efficiency.
Both businesses of Bühler, Grains & Food and Advanced Materials, contributed to the success of the Group in 2016. The strategy of two businesses that are both based on leading process technologies and services, has proven successful. The Group’s performance was strongly supported by its customer service business. Customers appreciate the local network of 92 service stations worldwide. Consequently, the service business showed higher growth and recorded a turnover of CHF 578 million, which is 7% higher than last year. The service share of turnover now accounts for 24% (previous year: 22%). On a regional level, growth in North and South America, Europe, and China overcompensated the downturns in the Middle East & Africa and South East Asia. Overall, Bühler holds a very balanced position with its global presence: Europe reported a turnover share of 30%, Asia 25%, Middle East & Africa 15%, North America 17%, South America 6%, and South Asia 6%.
Strong investment in new technologies, applications, and markets In line with its strategy of operating “in the region for the region”, Bühler also invested substantial sums in 2016 to enter new markets, develop decentralized applications centers, and further expand and update its global manufacturing network. Eight new service stations were added to the global network for a total of 92 locations with 60 workshops. This move further increases Bühler’s proximity to customers. In Vietnam, a new factory for rice equipment was opened. New regional applications centers were established, for example, in North America, and the buildup of a new production site in China is ongoing. In Switzerland, the company launched a modernization program. In the fields of battery manufacturing and insect processing, Bühler is set to capture the massive growth potential.
Strengthened financial position Net profit remained stable at CHF 143 million. Despite ongoing high investments of CHF 71 million into the worldwide asset base, net liquidity grew significantly by 18% to CHF 462 million. With an equity ratio of 47% (previous year 46%), the Group is free from all bank liabilities. The return on net operating assets (RONOA) stayed on a high level of 19% (previous year: 22%). “With this strong financial position, Bühler is well equipped to continue investing into its own future”, says CEO Scheiber. Sustainability further enhanced We are fully committed to sustainability with the ambition of contributing to a safe and secure global nutrition system as well as a responsible usage of natural resources to limit the effects of climate change. The key lever to support these efforts is innovation: With new technologies and solutions, Bühler transforms global challenges and trends into new business opportunities. With around 40 new products and technologies, Bühler proved to be a true innovation accelerator in 2016 and maintained
Positive outlook for for 2017 Regardless of day-to-day variations, Bühler is excellently positioned in global growth markets – the processing of basic foods & feeds and advanced materials. With a global setup, Bühler has achieved real customer proximity and truly lives up to the motto of being “locally relevant and globally leveraged”. Today’s megatrends such as the growing global population, increasing urbanization, or enhanced environmental awareness further benefit the strategic setup of the Group and unlock additional growth potential. “With the accomplishments of 2016, and a strong order backlog, Bühler has a positive outlook for 2017,” says CEO Scheiber. The dynamic nature of market and technology trends, regional developments, and political conditions make predicting potential business outcomes increasingly challenging. Bühler has adjusted to new developments with flexibility, a collaborative innovation model, and strong partnerships with customers, the science community, and technology and industry. Based on its leading technologies and solutions, Bühler aims to further increase its growth rate and profitability in 2017.
Adopt arm's length approach for CSR: Arun Jaitley Homecare items, organic food to be
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inance Minister Arun Jaitley asked corporates to adopt arm's length approach while taking up corporate social responsibility (CSR) activities and not pursue proposals to subserve their own ends. "I must say that in last 2-3 years it (CSR spending) has begun well. It has begun well because in the very initial years in the government we did calculate that the width of the whole CSR if adequately implemented in the very first year should be in the tune of Rs 14,000 crore. Obviously, the entire amount was not invested," Jaitley said after felicitating the recipients of HCL Grant 2017. The Finance Minister added that mandatory CSR spending was introduced in 2013 and its implementation started in 2014. Jaitley rued there was lack of understanding and consciousness about CSR spending and the purpose it serves. "But as years are moving ahead, I think it is an idea which is working well. Strict discipline has to be enforced that the expenditure cannot be camouflaged as corporates start supporting their own corporate
proposal on this strength and therefore there has to be some arm's length distance when we spend," he added. Jaitley said that government's priority programmes are for sanitisation and housing for rural areas as also the irrigation. There are some other areas also "by which we eventually want to supplement their (rural households) incomes - poultry, cattle, milk. The eventual objective is that we double their incomes," he said. A boost in rural income and consumption will have a cascading effect on the economic growth and help India achieve higher GDP expansion on a sustained basis. "With its limited resources, it would not be entirely possible for the government to achieve this objective. There are alternate models which have been advocated. But it is only an agenda on the table. "And it is here that the civil society has a very powerful and important role to play. And now that through the CSR mechanism there is an institutionalised process by which some resources need to be spent," he said.
launched by Sri Sri Ayurveda
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MCG firm Sri Sri Ayurveda is planning to scale its business by launching masala, home care items, organic food, and staples. Currently they have 30-35 products ranging from shampoos, creams, toothpaste, soaps, honey, and ghee among others. Sri Sri Ayurveda Chief Marketing Officer Tej Katpitia said at the India Food Forum, “We have a lot that is planned, a lot that is in innovation stage for this year.” The Bengaluru-based company had recently launched its health drink brand Ojasvita, endorsed by Olympic silver medalist P
Beverages & Food Processing Times
V Sindhu and National badminton coach Pullela Gopichand and it is looking to extend the brand to cookies. At present, it has three factories and is targeting the toothpaste and health snacks space to capture growth and is also looking to increase brand presence in metros and modern retail. Katpitia said, “Going forward, our health drinks and toothpaste, these are two areas we are going to focus and get it to as many people as possible. We want to increase our availability through franchises, retail, and modern trade. That is something on cards this year.”
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Vol. 9, Issue 10 - March - 2017
INTERVIEW
Quality is an important aspect in the food processing industry Q. How has the food processing industry grown in the past decade? As and when you are hungry, hence to satisfy your hunger you need to eat something and that is why Food processing Chairman, ‘Gharkul Industries Private Limited’ Industries has no Arun Varangaonkar death, it will continue to grow and increase. The population has also increasing and hence naturally the demand will also grow. Q. Tell me about your company’s growth from its inception. After studying the market, I found that daily wage earning class which comprises of 65 per cent population are not getting good quality products. Hence, to fill this gap I thought of introducing a Sachet of 25 paisa to meet their one or two time need on daily bases in 1984. The Company was started at Proprietorship Company. The daily wage earning class comprises of labours, rickshaw pullers and verity of daily wage earning class. This class also having taste buds and a quality product should be provided to them. Initially we started with an intention to cater to daily wage earning class, way back in 1984. As a proprietorship, I then launched sachet of 25 paise each and my company is Amravati-based. This region has a lot of daily-wage earning class including rickshaw drivers and pullers and the rest. For them, there was no product of excellent quality. So, I thought even they do have taste-buds, why don’t I give them a product which they can buy on a regular basis, take home, and use it while cooking food. The idea of giving the name ‘Gharkul’ in Marathi, it means a small house with four people. To cater this target customers, I launched the 25p sachet. Before the final launch, I tried around 60 formulas and then decided to launch the one which was
accepted by all. That is how I started and with time I added brand extensions and I am the FIRST man to bring in mutton masala. Again, I am the FIRST to pack masala on machine I am FIRST to use Pollster Polly as a packaging material in 1984. Before ‘Gharkul’ I was a medical representative for 16 long years, and I quit that profession to start ‘Gharkul Industries Private Limited’. Back then it was ‘Gharkul Utpadane’ (production) in 1984, over a period of time I handled the brand extensions that is 20 g, 50 g, 100 g, 200 g and so on. Simultaneously to maintain quality and other factors of the sachet, I had to increase the price; hence that 25 p pouch costs Re. 1 today. Since I created that niche, I must stay in that market although it is not economical for me. That class is demanding for ‘Gharkul’ products hence I am must be in this market. I adjusted the cost of that with the larger packs of 50, 100 and 200 grams. Then people started selling ‘Gharkul’ masala and eventually they asked me for other spices too. I understood it was their natural demand since they were selling my products. I did justice to them and obliged to their demand; few years ago, I launched chili, turmeric, and coriander powder. Simultaneously, I have developed a vegetable masala that is called as ‘garam masala’ because the Jain and other communities were compelled to sell this ‘Gharkul’ mutton masala inspite of their dislike for it. For them, I came up with ‘Gharkul mix garam masala’ again the blend is a different one as due to my years of experience I was successfully in creating this new masala. So as and when the demand for my products increases, there are requests to bring in fish, chicken masala and we have been closely working on chicken masala. In few months’ time, it will be launched in the market. Every product requires at least 3-5 years developing because it undergoes extensive trials. By and large, I know that my product has a shelf life of 15 months; hence I have
Consulting & Training
given shelf life of 9 months instead of 15 months. But the consumption is very rapid i.e. the product manufacture today is consumed in maximum 20 days. What growth percentage do you expect by the end of this fiscal year (2016-2017) at your end? Our growth rate is almost 22-23 per cent annually. My entire business is based on cash-and-carry, now the number of distributers is limited and I am always in need of more distributers and many are approaching us. The growth rate will increase in the next few years. Do you think the government has taken enough measures and initiatives for the food processing industry? What more can be done for this industry? The government is doing well and have taken a lot of measures, initiatives for this industry. They have created a ministry for food processing industry and encourage everyone related to agriculture and food processing. They want it to be processed and given to the market. The government is doing excellent but while implementing these initiatives, there are many other agencies that cause few hurdles in the path. With Narendra Modi’s Digital India campaign, the shift from manual to paperless work will eradicate the agency in between and the benefits will be received by those who rightfully deserve it. I can say that the government is not lagging, but rather encouraging the food sector. The Food Safety and Standards Authority of India (FSSAI) rules and regulations are to be viewed from Indian context and should not be seen from European or American standards. British and other people should come India in search of spices ONLY. That is why we should set the parameter for all the spices. Hence what Indians provide and what they need should be considered. There are so many meaningless cases lying in the court of law against entrepreneurs and food industrialists. There is no substance in their case which goes on
Factory Design
for years and that entrepreneur must be present for the court case which affects their business. FSSAI has laid down many stringent food safety norms for the Indian food processors. Do you think our products have met global standards now? Masala industry is India’s gift to the entire world. Cinnamon, bay leaves, coriander, gingers, and others are Indian produce. India needs to set the standards because they want our products and spices. My products meet the global standards as we are ISO 9001:2008 certified. We have done export earlier, but since we are not interested in blocking our funds for around months, hence we are not in export, as our business is cash and carry. A wise man will never like to do that, if at all they are in the business line. I would not like to do it, because I am doing business on cash-and-carry level. Are we prepared to cater to the growing demand in food processing industry in terms of good quality packaging and processing etc.? Yes, more than 100 per cent. We are prepared to the growing demand in food processing industry in terms of good quality packaging and processing. Per capita consumption of food industry is increasing year-on-year, how do you view this industry in the next 5 years? By around 2020, the industry should cross the 3 digits’ turnover and enter 4 digits. But my concern is quality, everyone should focus on qualitative aspect of their products. I am doing quality business as I provide quality spices as they undergo pre-cleaning; every sample of raw material and finished good from every batch goes for testing. Quality is an important aspect in the food processing industry which we observe. We are interested in joint venture and can supply the material in bulk as per requirement. Our website is www.gharkulspices.com
Training Aids
Paradigm provides training and consulting services in the areas of Food facilities design, Utility design, International standards and best practices implementation, Operational excellence initiatives. Facilities and utility design support:
Standards implementation support:
Operational excellence support:
• Process design, technology selection & process automation support. • Factory layout and built-in-hygienic design in line with global benchmarks, code of practices, international standards & legislations. • Support for complete factory utilities design – process heating & cooling (boilers, TF heaters, chillers), air compressors, MEP design viz. HVAC, electrical, plumbing and fire fighting.
• Robust food safety processes and systems implementation support • HACCP, FSSC 22000, BRC Food & Packaging, IFS • EMS, OSHAS, Social Accountability, Sedex
• Productivity improvement, wastage reduction • Business process re-engineering, lean manufacturing • Small group improvement initiatives like quality circles, 5S, Kaizen • Quality awa awards
Paradigm Services Private Limited 307, Center Point, Andheri-Kurla Road, J. B. Nagar. Andheri (East), Mumbai- 400 059 Phone: +91 (0) 7738 140400 | +91 (0) 22 28395651| +91 (0) 22 28395652 Email : office@paradigm.co.in | Website: www.paradigm.co.in
Beverages & Food Processing Times
29
Vol. 9, Issue 10 - March - 2017
PRESS RELEASE
Personalised nutrition emerging as next big industry trend
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(previously known as the Vitafoods Europe Conference) which runs alongside the trade show. Delegates who book their places on the Vitafoods Education Programme before 17 March can benefit from an Early Bird rate.
ersonalised nutrition is rapidly emerging as a key issue for the long-term future of the industry, new research has shown. The findings come from a survey* by the organisers of Vitafoods Europe 2017, which takes place from 9 to 11 May at Palexpo in Geneva. They asked Vitafoods Europe visitors what they saw as the three most important trends in the nutrition industry. For the short term (over the next 12 months) personalised nutrition was picked by one in five respondents (19%). However, when they were asked to think about the long term (the next three years) over a third (35%) identified it as an important trend. The figures reflect the emergence of new possibilities such as individualised dietary guidelines, wearable technology, and personalised nutrition based on genetic testing. Accordingly, another hot topic for the future was nutrigenomics, which was seen as an important short-term trend for 8% of respondents, but an important long-term trend for twice as many (17%). The survey also demonstrates the continuing importance of high quality and evidence-based claims to meet regulatory requirements and consumer demand. The issue most likely to be seen as important – both now and in the future, was scientifically supported health claims, which was identified as a key trend in the short term by 47% of Vitafoods visitors, and in the long term by 50%. The health needs created by demographic trends such as population ageing and obesity continue to shape the agenda for much of the industry. Respondents were asked which three health benefit areas were most important to their companies. Healthy ageing, picked by one in four (23%)
ranked top, followed by bone and joint health (22%), cardiovascular health (21%), general wellbeing (21%), and weight management (20%). Commenting on the survey findings, Chris Lee, Portfolio Director of Vitafoods Europe, said: “Part of the role of Vitafoods Europe is to help the industry prepare for challenges and opportunities approaching on the horizon. When it comes to personalised nutrition, our research suggests we’re at the start of the curve. Areas such as wearable technology and genetic testing for nutrition may seem niche now, but one day they’ll be the norm.” He continued: “The fact that half our visitors list scientifically supported health claims as an important trend reflects the close relationship between science and our industry. That’s why Vitafoods Europe offers access to the latest cutting edge technical and scientific knowledge.” Vitafoods Education Programme The importance of both personalised nutrition and scientifically supported health claims is reflected in this year’s Vitafoods Education Programme
For delegates seeking high-level technical knowledge for product development, seven R&D Forums will showcase the latest in applied nutrition science. They will focus on documented ingredient benefits and applications through a prism of clinical trials, observational studies, and EU projects, and will be delivered by some of the world’s leading experts. Among these will be Dr Harry B. Rice of GOED, who will present the findings of a recently conducted meta-analysis on EPA / DHA Omega-3s and their impact on risk of coronary heart disease. Personalised nutrition and the opportunities offered by advances in genetics will be among the topics discussed at a series of expert Business Workshops for visitors. New Nutrition Business UK will explain why “personalisation is the new normal.” And speakers in the Botanical Workshop will include Prof. Vittorio Silano, Chairman, EFSA Scientific Committee Working Group on Botanicals. In the field of digestive health, which the survey
Beverages & Food Processing Times
finds to be the most important health benefit area for 19% of respondents, there will be the Probiotics Summit. Delegates will be able to learn more about the current market environment in the ever-growing field of probiotics, and to hear from experts such as Professor Michael Messora of the University of São Paulo. Something for Everyone In addition to the education programme, personalised nutrition will be a key focus on the Vitafoods Europe showfloor. Vitafoods Centre Stage will host a panel discussion titled ‘Health by Design: The Future of Personalised Nutrition’ featuring Dr Astrid Stuckelberger of the Institute of Global Health, Faculty of Medicine, University of Geneva. There will also be a presentation by Rajiv Khatau, Managing Director of Lodaat Pharma on product customisation for individual personalised health. And Dr Volker Spitzer, Managing Director analyse & realize will address best practice in consumercentric innovation. The Life Stages Theatre will review the bespoke nutrient requirements needed throughout the stages of a person’s life, covering the latest scientific research, and featuring a discussion on how to innovate in infant nutrition. Meanwhile, the Probiotics Resource Centre, in association with the International Probiotics Association, will display the latest R&D developments in probiotics. Survey of 143 people who have visited Vitafoods Europe in the past, and / or will visit the 2017 event. Conducted between 6 December 2016 and 3 February 2017.
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Vol. 9, Issue 10 - March - 2017
MEAT NEWS
How new preservatives can make meat safer
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rjuna Natural Extracts Ltd said it is coming out with X-tend, a complete, natural, formulation-specific preservative that will increase chilled-meat product shelf-life and better ensure food safety. Synthetic preservatives used in chilled meats commonly contain nitrates, which can bring about nitrosamines, chemical compounds that allegedly can increase cancer risk. The all-natural X-tend formulation can be used instead. X-tend is designed to be highly potent and prevents the growth of yeast and mold in chilled meat products. Arjuna Natural Extracts’ all-natural X-tend formula can replace chemical nitrosomyoglobinforming preservatives, yet is non-carcinogenic and safe to use in chilled meat, eliminating some of the problems of storing meat.
According to the Agriculture and Consumer Protection Department, the chemical composition of meat is rich in proteins, lipids and water, making it a favorable substrate for the growth of microorganisms. The lipid content also makes it very sensitive to oxidation. Last year, FoodCap, a New Zealand tech company, developed an innovative approach to chilled meat material handling for buffering, storage, aging and transport of red and white meats between processing lines. Other companies are working on similar ideas to help meat last longer in this environment.
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This comes after four years of muted profitability when the industry had suffered from dual pressures of high feed costs and unfavorable realisations. The broiler volume growth for calendar year 2016 is estimated to be adequate at 6 per cent y-o-y taking domestic broiler meat production volumes to 3.9 million tons (carcass weight) as against 3.7 million tons in CY2015 and broiler market value at Rs 660 billion in terms of retail prices. Broiler volume growth is expected to remain at 6-7 per cent in medium to long term, given favourable factors like low per capita consumption currently at 3 kg pa, religious preference for chicken meat, year-round easy availability across country, increasing disposable income, changing food habits, increasing health awareness, and poultry being one of the cheapest source of protein. The current fiscal started strongly for the poultry industry with record high realisations during Q1 FY17 though realisations moderated in Q2, in-line
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he picturesque summer capital of Jammu and Kashmir, Srinagar generates 450 metric tonnes of garbage daily out of which 200 metric tonnes is animal and poultry waste alone with one lakh poultry slaughtered daily.
with seasonal trend for the industry. While Q3 saw some impact of demonetisation on realisations, lower feed prices declined by 10-12 per cent from April 2016 levels and supported overall contribution levels for the industry. Feed prices continue to remain affordable in Q4 FY17 and with realisations holding stable, the overall FY17 profitability is expected to be much better than last four fiscals. India continued to report sporadic instances of 'bird flu' outbreaks in 2016, including in certain parts of Kerala, Karnataka, Haryana, Punjab and Odisha which had marginal impact on poultry prices and supply for short duration in and around the affected area. Key challenges faced by the industry, other than sustainable feed costs, include inadequate cold chain and transportation infrastructure, high vulnerability to disease outbreaks and highly volatile realisations affecting cash flow. Poultry integrators have limited control over feed prices and broiler realisations, and they continue to focus on improving productivity through better Feed Conversion Ratio (FCR) by experimenting with feed mixes, lower mortality rates through enhanced farm management, and continuous efforts towards improving other parameters like hatchability and average daily weight gain, ICRA said.
As per provisional reports of Census India, Srinagar’s population was 12.64 lakh in 2011. The report said, “About one lakh poultry birds are slaughtered within municipality limits producing 40,000 kgs of poultry waste from poultry outlets in the city.” SMC has been taking several measures to deal with collection and disposal of garbage in the city, it said, adding about 300 garbage sheds across the Srinagar city have been closed and instead door-todoor collection of poultry waste from the poultry outlets was launched. The collection of garbage generated from all hotels, restaurants across the city by special garbage collection vehicles has been put in place, it said.
With the X-tend product, getting the taste and correct mouthfeel isn’t perfected, but further experimentation with flavor masking should help improve this innovation.
Domestic poultry industry's profitability is expected to improve sharply in FY17 he domestic poultry industry's profitability is expected to improve sharply in 2017 majorly benefiting from lower soymeal prices, ICRA Research said in its report. Domestic poultry industry is expected to register sharp improvement in profitability in 2017 majorly supported by lower soymeal prices in H2 FY17 and remunerative broiler and table egg realisations during Q1 FY17.
200 MT animal waste generated daily, ‘Poultry matter’ in Srinagar
A senior official of Housing and Urban Development Department said in a report of Srinagar Municipal Corporation (SMC). “Daily about 450 metric tonnes of garbage is being produced within Srinagar city which includes about 200 metric tonnes of animal and poultry waste alone.” Srinagar city is governed by Municipal Corporation which comes under Srinagar Metropolitan Region.
SMC has deployed additional compactors, dumper placers, garbage collection light vehicles, tippers, land dozers and hoper vehicles in the city. These initiatives have resulted in reducing the spread of waste particularly animal and poultry waste within the municipal limits. About 400 smart garbage bins with lids are being introduced besides 16,000 twin colored domestic garbage bins have already been distributed, it said.
Govt asks export promotion councils to go cashless
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ommerce Minister Nirmala Sitharaman said government has asked all export promotion councils to go cashless in respect of their payments to deal with the liquidity crunch post note ban. Last year in November, the Commerce and MSME Ministry had met the export promotion councils (EPCs) to assess the impact of demonetisation on the country’s exports. “The government has received feedback from industry and trade associations. To mitigate their problem of liquidity crunch, the government has taken several measures, including one where all EPCs have been advised to go cashless in respect of their payments,” Sitharaman said in a written reply in the Lok Sabha. Furthermore, she said the coverage of the loans under the credit guarantee scheme for MSMEs implemented by the Credit Guarantee Fund Trust has been increased to Rs 2 crore from Rs 1 crore. The scheme has also been extended to loans for MSMEs by non-banking financial companies. Sitharaman also said the department of financial services has issued an advisory to banks to raise
working capital and cash credit limit for MSMEs. Saudi Arabia has imposed a temporary ban on import of eggs and chicken from India due to the outbreak of avian influenza virus. In response to this statement, she said “The Royal Embassy of Saudi Arabia through their communication dated November 26, 2016, has informed that their Ministry of Environment, Water and Agriculture has decided to impose a temporary ban on import of live birds, hatching eggs and chickens from India due to the outbreak of highly pathogenic avian influenza.” She also said the government is not considering creation of bird flu-free zone for export of poultry products. “It is difficult to maintain bird flu-free zones as the zones may be contaminated by the wild bird as India is coming under the number of migratory birds’ flyway. However, the department of Animal Husbandry, Dairying and Fisheries is recognising disease-free compartments of poultry establishment from where export of poultry and poultry products can take place,” Sitharaman added.
E-commerce portal Genuine Broaster Chicken to Cambaytiger.com launched expand network by May by WestCoast
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ellow Tie Hospitality, Food & Beverage franchise management company has launched the first store of the American Heritage Brand Genuine Broaster Chicken in Hyderabad, taking the number count from 6 in the country to 25. They have plans to expand by May and touch 50 by the year end. This will make it one of the fastest growing international brand. Founder & CEO, Yellow Tie Hospitality, Karan Tanna said, “We have evolved into a franchise expert and have the capability to offer all services relating to a franchise requirement, including management, training, and sourcing products. The Genuine Broaster Chicken is an example of what we can achieve. Thus far, we have invested about $3 million in the initiative.” He said, the Wisconsin-based chain that supplies
equipment to make Broaster chicken, backs a network of over 12,000 outlets globally and Yellow Tie is setting up a chain in India. The chain offers a wide range of delicacies including fusion cuisineHappy Fried chicken and Indie MakhniFranchos. Chef Harpal Singh Sokhi, also the brand ambassador of GBC has special offerings which includes Green Palak Paneer and Red Lamb Rogan Josh Burger. Yellow Tie has three more brands with Chef Harpal Singh Sokhi-Dhadoom, a young and fun brand that is all about fries with Indian toppings, Twist of Tadka, a pure veg multicuisine restaurant and BBJaan, offering premium authentic Nizami food. Among other projects and QSR chains, Tanna plans to fund start-ups in the food and beverages business providing seed capital.
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ully integrated seafood company WestCoast Group has launched its e-commerce portal to be the largest player in seafood e-commerce space. WestCoast group is in the business of shrimp hatcheries, shrimp farms, fish farms, processing and freezing of seafood and exports. The company aims to be the largest player in seafood e-commerce space by delivering quality seafood to customers living anywhere in Mumbai and will expand its e-commerce service to other metros like Delhi, Bengaluru and Chennai, the company said. Cambay Tiger is a selling seafood brand and flagship brand of the WestCoast Group. WestCoast Fine Foods (India) Director Shivam Gupta said, the quality in customer delivery of seafood in Mumbai is going to witness a sea-change with Cambaytiger.
Beverages & Food Processing Times
com. In a first of its kind in the country, customers will be able to order straight from our farms to their homes, giving them a true farm-to-fork experience with guaranteed traceability," Cambaytiger.com will deliver live, raw, readyto-cook and frozen seafood. Live seafood will initially include Tilapia and mud crabs. Raw would include crustaceans, including prawns, exotic fish such as Atlantic salmon (flown all the way from Norway), fresh water fish such as catla, tilapia and hilsa and sea water fish such as Indian salmon, seer, (Surmai), Chinese pomfret and silver pomfret, said the release. The ready-to-cook seafood will include marinated tilapia, prawns, pomfret, salmon and surmai. Cambaytiger.com will also serve frozen veg snacks of Frish and Kawan brands, it added.
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Vol. 9, Issue 10 - March - 2017
TEA & COFFEE NEWS
Eveready Industries India to focus more on their Packet Tea Business
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veready Industries India Limited (EIIL) Managing Director Amritanshu Khaitan said, “While the packet tea business will continue to leverage the company’s widespread distribution network, we will evaluate various options for future growth including the possibility of continuing with the business through a subsidiary or a special purpose vehicle by roping in a strategic partner.” The board approved the company’s proposal to reorganise its packet tea business. The battery manufacturer has decided to ‘provide sharper focus’ for its packet tea operations in the country and chart out a higher growth trajectory. He also added, “The objective of the exercise is to provide sharper focus to the packet tea business which is currently not adequate as it remains mixed with the Eveready branded product verticals of dry batteries, flashlights, lighting product and home appliances.” Currently, Eveready’s packet tea volume is around 4 million kg. The company will
also be able to look at the acquisition of packet tea brands to grow its business. EIIL’s packet tea has a Rs. 75 crore turnover and contributes a little over 5 per cent to the company’s topline. Khaitan said, “The focus on packet tea business will help us scale up the volume to 10-15 million kg and double turnover by 2020-21 through organic and inorganic routes making the new entity the third largest player in the packet tea business after Unilever and Tata Global Beverages.”
Nestle has decided to focus on ready-to-drink segment
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ndia is one of the fastest growing markets for on-the-go and out-of-home consumption as number of millennial youth is increasing. CMD, Suresh Narayanan said “In the next stage of engagement, we will have both, ready to-drink and chilled dairy businesses. There are properties on which we can work." However, Nestle, which sells juices in some geographies including neighbouring Pakistan, would not them here as the segment is crowded. Besides, Nestle presently exports to around 40 countries, expects it to contribute more this year from the current 5 per cent. "We are looking at that, as to how to increase our global foot print and here some global accounts might be interested in sourcing from India. Let's not forget that the Indian diaspora is present in Europe and US in a big way," Narayanan said. Presently, exports contribute five per cent to Nestle's turnover and is expected to go up as it is introducing more products. "Unfortunately, while we started our exports after the Maggi crisis, the pace was not as brisk because many of these
countries were still having the kind of effect of the crisis. Now all that is behind us and we would be more definitive on that," he said. Nestle is expanding its footprint in India, primarily in top 600 cities of India, and would continue to invest as it senses great opportunity. Still, Nestle will continue to cater to rural India, which contributes around 25 per cent to it sales, with noodles, coffee, confectionery with redistributors which feed those regions. "Whatever relevant portfolio we have, I would have representation in the rural market. But with a very clear focus on the fact that the top 600 cities which are going to be hub of consumption," he said.
Nestea gets a new makeover Tpot Cafe with an investment plan of 1 mn
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ith an aim to evolve the brand to get a trendy feel and by flaunting fewer ingredients & a ‘clean’ nutritional label; Nestea ice tea brand has undergone a major brand overhaul. Nestle announced it has fully remade the Nestea brand which means the new Nestea will come with new recipes, a new logo, and a new bottle to help Nestlé tackle the $4.5 billion readyto-drink tea category. Nestlé said the remake is the largest overhaul in history of the tea brand. Vice President and General Manager of Nestlé Waters North America's tea unit, Karen Ress said “The brand has never gone through the total evolution that it is going through today. We revolutionized every aspect of the brand.” The big changes include reformulated fruit flavored teas and four new brewed teas. The fruit-flavored teas contain no high fructose corn syrup and no artificial ingredients or flavors. The brewed teas are streamlined and only contain four ingredients: water, sugar, tea, and citric acid. Those teas use leaves from Nilgiri, India. The new bottles, meanwhile, have grips and a wider mouth than the older Nestea bottles. Nestlé Waters North America tea Marketing Director Cassin Chaisson said “the tea itself and
D how we come to market had to change. While consumers trusted Nestea and they know the brand—it has 84 per cent awareness in the United States—the old version wasn't meeting current demands for an iced tea. We had to look at ourselves and say, we aren't providing what they want in tea today. We wanted that frank conversation.” Consumers in fruit tea, they love sweet, fruitflavored tea. But they don’t want the calories or the sugar," said Chaisson. To maintain sweetness, Nestlé added the sweetener stevia to cut back on the amount of sugar calories that Nestea drinkers would get from their tea. But the company was still able to maintain that sweet, fruity flavour.
China may get Indian herbal tea
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he British introduced tea in India from China. Now, Fabindia is trying to take Indian herbal tea to China. A Lucknowbased organic food and supplements firm now owned by Fabindia, Organic India, the Chief Executive Abhinandan Dhoke said “We are going to enter China with our tea category.” Organic India plans to launch its herbal tea in China next year, if they receive the regulatory approvals. The firm had hired a Chinese consultancy to study potentials for Indian ayurvedic products in China. “We saw a huge potential there,” Dhoke said. The company has partnered with the same consultant to help work on its entry strategy for China. “We are predominantly into green tea and other infusion of herbs so that is very relevant category that is existing over there,” Dhoke said. Bharat MitrafoundedOrganic Indiain 1997, a former disciple of Lucknow-based spiritual teacher the late H W L Poonja, fondly known as ‘Papaji’. Mitra came to India in the 1980s in
search of truth and self-realisation, and ended up establishing a business that supports livelihood of thousands of farmers in the area. Today, it sells its products across the country through 25 own stores besides Fabindia outlets and hundreds of general retailers, and exports to 35 countries including the US most of Europe, the Middle East and some African countries.
elhi-based Chai Cafe company by the name Tpot Cafe said they are looking to invest 1 million in the next 3 months to start 50 stores across Delhi NCR. Co-founder, Tpot Cafe said Robin Jha said “We have just started the execution of our new outlet and we expect to hit number of 50 stores in next 3 months. We are looking to invest 1 million-dollar. The idea is to create good team before we start opening more stores. Secondly, we will invest lot of money in processes and product too.” It currently runs 25 outlets in Delhi / NCR and has monthly revenue of around Rs 50 lakh. They see a lot of opportunities in the chai cafe market. In comparison with the CCD chain of business, Jha said, “If you see CCD which is into coffee retailing, has around 3000- 4000 outlets in India. And tea is 8 times bigger market than coffee, even if we can capture the stores that CCD alone has in India, we
Indian coffee brand Araku opens 1st retail store in Paris
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raku Global Holdings, a venture promoted by top corporate honchos, including Anand Mahindra and Infosys co-founder Kris Gopalakrishnan expanded its operations overseas by opening its retail store in Paris.
In 2015-16, Organic India had a turnover of Rs 205 crore. The country’s largest private retailers of ethnic wear and other traditional products, Fabindia acquired a 40 per cent stake in Organic India in 2013, and later increased it to 50 per cent. Fabindia would be the latest among a string of Indian companies trying to sell tea in China. In 2007, Tata Global Beverages formed a joint venture with Zhejiang Tea Import & Export to manufacture and market green tea, green tea extracts and other value-added tea products in China.
have an opportunity of at least 5000 stores in India and I am sure that top 3 to 4 players in this space will have almost 80-85% of those stores. So there are possibilities of at least 500 stores in India for us (Tpot) in next 2-3 year by 2020. And that what’s our focus is to raise money for the expansion and to build the team that will help us in operations.”
the future of philanthrophy where a sustainable private enterprise helps serve a larger social need over the long term." Araku Global Holdings was formed by a group of Indian businessmen, including Mahindra, Gopalakrishnan, Dr Reddys Chairman Satish Reddy and Rajendra Prasad Maganti, Chairman, Soma Enterprise. The venture is managed by the Naandi Foundations CEO, Manoj Kumar along with other trustees. In addition to its flagship store in Paris, Araku Coffee is also being sold at the LVMH Groupowned La Grande Epicerie de Paris and will soon be available on the shelves of other high-end Parisian concept stores, the statement said.
The company said it marked the global debut of Indian coffee brand Araku through the flagship retail store in Paris and is looking to expand in Europe. Mahindra said, "We are focussed on making Araku a globally recognised luxury coffee brand from India, while helping improve the lives of tribals in the Araku Valley. This, I believe is
Beverages & Food Processing Times
The brand is also available in Switzerland and will be launched in a range of European markets shortly, the company said, adding that Araku coffee is being sold across Europe on the company’s website. The native tribes of the Araku Valley in Andhra Pradesh cultivate this home-grown blend of Arabica coffee.
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Vol. 9, Issue 10 - March - 2017
NEWS
Buhler solutions help to turn an olive by-product into a new, natural “super” ingredient Buhler optical sorting technology sows the seeds of success for Spanish olive processor experience in the olive sector who founded the Andalusia-based Grupo Elayo in 2012 with a plan to create innovative, new ingredients from the versatile olive. These include ‘Caviar de Oliva’, a premium product made from spheres of flavoured olive oil, which has helped the company expand into parts of the world that previously didn’t consume olive oil. Sophisticated SORTEX technology from The Buhler Group has unlocked the secret to turning a by-product of the pitted olive and olive oil industry into a new, natural, “super” ingredient for the food, pharmaceutical and cosmetic industries Spanish olive processor Grupo Elayo has a firstclass reputation, not only for its quality olive oil, but also for developing new products and applications from various parts of the olive fruit and olive tree. The company’s vision is to turn tradition into innovation by exploring new opportunities for by-products of the traditional olive oil extraction process, including its leaves, pits and more. Now, with the help of optical sorting technology from The Bühler Group, the global leader in food processing technology, Grupo Elayo is extracting the seeds from inside the olive pits, which contain up to 100 times more polyphenols and antioxidants than olive oil, plus high levels of good-quality dietary fibre. They are also proven to help to reduce cholesterol and have a positive effect on blood pressure.
agent and antitumor, among others, highlighting the undeniable value of seed oil.” Extensive testing is currently underway to find out even more about the bioactive compounds
Impressed with the results, Peinado installed Buhler’s SORTEX sorting technology into his factory, with the process comprising three stages. After the stones are broken, the mix of stone fragments and seeds is conveyed into the first chute of the sorting machine where the InGaAs cameras aid the separation of stones from seeds. This constitutes almost 90 per cent of the material. The remainder – about 10 per cent then undergoes another sort on the second chute to ensure only flawless seeds, without any pieces of stone, are sent on for further processing. The third chute resorts the rejected material to recover any seeds still attached to the stone so they can be sent back to the cracking machine and re-sorted to minimise wastage of the valuable seeds.
“Until now, the olive pit and seed inside were discarded as waste,” explains Peinado, “but we’re working on developing new products based on the seeds. They can be consumed raw or toasted as a snack, or used in energy bars or cookies in a similar way to pumpkin seeds.” He has also developed a procedure for extracting a highly-concentrated oil from the seeds, which he says offers greater health benefits than conventional olive oil. “Small quantities of this kernel oil, which contains linoleic acid, terpenic acid, polyphenol and sterols, can be used for cosmetics, functional foods, or medical applications, such as therapy for joint pains or the treatment of burns,” he says. “The bioactive compounds in olive seed oil have significant health benefits. It is an antioxidant, anti-inflammatory, cardioprotective
contained in the olive seed oil. And that’s not all: the seeds, which boast high levels of protein and fibre, can also be used to produce gluten-free flour as well as added to baked goods, such as bread or pizza dough, or used as a topping for sweet or savoury baked goods. Before putting his olive seed plan into action, Peinado invested in a processing line to clean, dry, crack open and sort the olive stones from the seeds. However, sorting the seeds from the stones presented a problem. “As the seeds and stones were practically the same colour, none of the sorting technologies we had installed could distinguish between them reliably,” he recalls. To solve the problem Peinado got in touch with specialists at The Bühler Group, a global company with 70 years’ experience in developing optical sorting solutions for various applications and industries.
Using the olive pits and seeds was the brainchild of Jose Maria Olmo Peinado, a mechanical engineer and business economist with 33 years’
the subtlest differences in colour not visible to the human eye, making it possible to distinguish the olive seeds from the stones and seeds with embedded stone fragments.
After several months of intensive trials, Buhler’s London optical sorting research and applications department made a breakthrough using special InGaAs camera technology. It was able to detect
“Buhler’s technology makes us the only company in the world capable of extracting olive seeds successfully,” says Peinado. He adds that the efficiency and speed of the technology is also a key feature of the sorting solution. Despite the high throughput rate of around 700kg of raw material per hour, minimal good seeds are lost – a crucial success factor. Overall, it takes 25 tonnes of olives to extract just 1,250kg of seeds. Peinado’s innovative thinking doesn’t stop there. He has even developed a way of using the olive stone fragments to produce, among other things, biomass for heating systems, fireplaces, and barbeques. He can also grind them into a powder, which is ideal for use in cosmetic creams due to its exfoliating effect, while broken-up olive stones can also be used as a raw material to make an exceptionally robust and durable chipboard. The ability of Buhler’s optical sorting specialists to work alongside businesses such as Grupo Elayo to help them innovate and to grow, substantially reinforces its leading position and influence in delivering ground-breaking solutions to food processing industries. The success of the SORTEX installation at the plant in the Andalusian provence of Jaén, Spain – one of the biggest and most important olive oil growing regions in the world is further evidence of the Buhler’s commitment to working in partnership with customers to deliver the best return on investment through product innovation.
Infosys Limited inducted into the ACREX Hall of Fame 2017 powered by Danfoss
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nfosys Limited, Bangalore-based Indian Multinational Corporation received the honour of being inducted into the Hall of Fame at ACREX 2017, one of India’s largest industry exhibitions. Instituted by ISHRAE in partnership with Danfoss India, the coveted induction recognized Infosys for being at the forefront in driving Energy Efficiency and Sustainability and further encourage its peers & the industry in building a sustainable HVAC industry. ACREX Hall of Fame is an industry benchmark instituted by Danfoss India in partnership with ISHRAE (Indian Society of Heating, Refrigerating and Air Conditioning Engineers) to recognize the excellence achieved in conserving energy by commercial buildings in the Indian subcontinent. The coveted recognition aims to encourage energy efficiency among industry stakeholders and showcase success stories in the HVAC space in India.
“While it is general practice to look outside India for best use case projects which have displayed energy saving capabilities, we have examples in India which can be benchmarked globally. It is vital to look at these success stories within India which can be emulated by others in the industry.” said Mr. Ravichandran Purushothaman, President, Danfoss India. It is with this idea of identifying projects from which we can all learn and imbibe that Danfoss India associated with ISHRAE to bring you the prestigious ACREX Hall of Fame which is a journey we started in 2015 and are proud that the platform has been embraced by stakeholders in the Commercial Buildings space,” he added. This year, the coveted recognition has been awarded to Infosys for being a front runner in promoting energy conservation and sustainable work environment. With an integrated approach to developing energy efficient buildings that include
sourcing natural lights, efficient LED Lighting, Energy harvesting sensors & control and the implementation of the radiant panel based cooling, Infosys reaffirmed its commitment to develop and maintain a green infrastructure. Acknowledging the award, Mr.Guruprakash Sastry, Regional Manager Infrastructure, Infosys said, “We are happy that Infosys is inducted to ACREX Hall of fame and serves as a testament to the increasing focus on energy efficiency and sustainability. With a performance based, data driven methodology, we are trying to approach energy efficiency and sustainability from a more holistic view and it is our belief that the scope for energy efficiency in buildings is immense and the key to energy efficiency is proper management.” What makes the 2017 Hall of fame stand apart is that every stakeholder, owner, developer, HVAC Consultant, HVAC Contractor were recognized for their contribution to making the sustainable journey
Beverages & Food Processing Times
possible. 10 HVAC projects were nominated, out of many entries across India, which were based on selection criteria such as Energy Performance Index, Indoor Environment Quality initiatives, Energy Saving Initiatives including Renewable Energy, Building Management System and oneyear operational data was scrutinized for this. “There is a need to build awareness about energy efficiency and HVAC for the development of infrastructure and sustainability in our country. Proper energy management will lead to improvements in energy efficiency, optimization of energy and demand management. In the future, buildings can become smarter, intelligent, and environmental friendly. ISHRAE through ACREX aims at identifying a project which is ideal to be placed in the hall of fame and aligns with our visions for the country in terms of energy efficiency, innovation and technology, “said Mr. Sachin Maheshwari, President, ISHRAE
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Vol. 9, Issue 10 - March - 2017
ARTICEL
Cleanroom gloves or medical gloves?
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uppliers of specialist gloves are often asked to supply medical gloves for use in cleanroom applications. On the face of it, this doesn’t seem unreasonable, however the introduction of medical gloves into a cleanroom could have serious repercussions. A quick conversation is usually enough to help the customer to specify an appropriate product, but why does the misunderstanding arise in the first place? The following article sets out to explain why the two applications are often incompatible. Perceived wisdom is that gloves used in medical environments are sterile, as the purpose of medical gloves is to prevent cross-infection from the clinician or surgeon to the patient. Surely, therefore, medical gloves MUST be very clean. This is a misconception and only partly true. The ultimate purpose of sterilising surgical gloves to be used in operating theatres is to prevent infection from bacteria which would otherwise be present on the gloves. Contrary to the belief of many, the standard dispenser boxed examination gloves used in medical and dental environments are NOT sterile, and all they can do is prevent cross infection spreading from the wearer of the gloves to the patient. The patient is NOT protected from the multiple bacteria that are already present on the gloves.
Dentists are still allowed to use powdered gloves but all medical gloves used in hospitals in the UK must be powderfree. The traditional way to make a glove powderfree was for it to be put through a process of chlorination after it had been removed from the production line. The process of chlorination not only removed all the powder but it also killed the bacteria on the glove. As such, provided the packers of the exam gloves wore clean gloves, one could be reasonably assured that the examination gloves would have a very low bacteria count. Nowadays, however, powderfree medical gloves are rarely made through a process of chlorination (inside and out), as in the interests of economy, other manufacturing methods for these gloves have been developed and established. Most powderfree medical examination gloves are now either produced on-line by dipping them in to a polymer coating or by chlorinating them on-line prior to stripping them off the glove formers. Because gloves are moulded inside out, chlorination takes place ONLY on what is ultimately the inside of the glove. The outside does not come into contact with the chlorine and therefore the gloves will be prone to having a lot more bacteria as compared with offline chlorinated gloves.
is not fighting against the natural behaviour of the rubber and instead the rubber is assisting the wearer where fine control is required. If operators are involved in very fine work, the thickness of the glove becomes important, as does the level of grip and the texture of the fingertips and palm.
There is little emphasis during the production and packing of surgical gloves on the minimisation of either of these, and thus sterile surgical gloves frequently have high particle counts, albeit of sterile particles. As a further indication of the lack of concern for particles in medical environments, you just have to look at the packaging of standard surgical gloves. (figure 1) They are packed in paper inner wallets which are then, traditionally, sealed into paper pouches that tend to shed particles when peeled open. The sealed pouches are then further packed into cardboard boxes. Paper is a no-no in all non-medical cleanroom environments, so all this packaging is unacceptable. In contrast to the paper packing of surgical gloves, sterile cleanroom gloves are packed using non particulating materials such as polyethylene inner wrappers and easy-tear pouches(Figure2). All this packaging is itself manufactured in a cleanroom to ensure its cleanliness, and comes technically specified. In some cases, it will not be necessary for pharmaceutical manufacturers to use sterile gloves, for instance if making tablets. However, it is still important that the particulates on the gloves are low. Not only do the particulates need to below, but the bacteria count on the non-sterile gloves will also need to be very low. Therefore, it is important that cleanroom gloves are used for this application. All good cleanroom gloves are chlorinated off-line, meaning that both the inside and the outside of the gloves are thoroughly dosed in chlorine. They are then washed in highly filtered water to remove the residual chlorine and other particles. Whilst the removal of particles is important for gloves used in the manufacture of pharmaceutical products, removal of ionic contamination is not of importance. However, for the micro-electronics industry, whilst a low particle count is extremely important, in addition to this, many manufacturers also consider low ion counts to be a critical requirement. Ionic contamination can greatly reduce the yields in the manufacture of electronic products such as hard disk drives, printed circuit boards and silicon wafers. Ions such as chlorides, nitrates, sulphides, sodium, potassium, etc are by-products of the chemicals used in the manufacturing process. These particles rest on the surface of the glove and require mechanical removal. This is achieved by washing the gloves in ultra-pure, de-ionised water, and then drying just before packing. Having demonstrated that medical gloves are not suitable for cleanroom use, we have to ask “what actually are the important characteristics of cleanroom gloves.” The number one characteristic, which has already been established, is the cleanliness of both the glove and its packaging. However, beyond that, users have a wide selection
of gloves to choose from to match their application. It is probably true to say that for every cleanroom application there will be several options available to the purchaser, and that final selection frequently comes down to the preference for one glove over another based on purely subjective criteria such as fit and feel, level of grip, etc. One thing that the user should be able to take for granted, is that the physical properties of the gloves should reach minimum standards. However, the cleanroom glove community has evolved without defining exactly what the minimum standards should be. This void has been partially filled by glove manufacturers using the existing medical glove EN 455 standards, to define dimensions, strength, and limits on the numbers of pinholes as a basis for quality assurance and quality control in their factories. What is equally important is that glove manufacturers specify the cleanliness class for which the glove is suitable, as defined in EN ISO14644-1, e.g. ISO Class 4 or ISO Class 5. It should be noted that some cleanroom gloves are also specifically chosen because they protect the wearer from harmful chemicals. These gloves are classed as Personal Protective Equipment (PPE) and are regulated under the European PPE Directive and its associated standards. Obviously, such gloves must at the same time comply with cleanrooms requirements. The other issues that the specifier needs to consider are the shape of the gloves and the type of rubber used for their manufacture. Lower cost bulk packed non-sterile gloves are normally flat form, ambidextrous, with the thumb emerging at the side, allowing the glove to be donned on either hand. These gloves are excellent for general purpose use in the cleanroom, but every movement of the fingers and thumbs should overcome the resistance of the glove material, which has a natural tendency to maintain its original shape. In most applications, this will not present a problem, however if the wearer is constantly engaged in very fine work, requiring precise movements, then the resistance of the glove can cause fatigue in the hand and particularly finger muscles. For precision work, hand specific gloves are better option. Hand specific gloves are moulded with a slight curve to the fingers, and with the thumb offset to the front in much more natural position than ambidextrous gloves. These design features mean that the wearer
Pharmaceutical manufacturers will normally require sterile gloves, but in addition to the sterility, they also require the gloves to be low in particulates, especially if they are making injectables. There are many ways that particles get on the gloves. The main origin of the particles is human cells, followed by tiny fibres from clothing.
Beverages & Food Processing Times
In terms of wearer comfort, Natural Rubber Latex(NRL)is probably the best option because of its elasticity and strength. However, there are concerns surrounding latex allergies which can affect the wearer and make the gloves unacceptable in some pharmaceutical manufacturing applications where possible contamination with NRL proteins would render the processed drugs unusable. The alternative synthetic rubber materials are Polychloroprene, Nitrile, and Vinyl. Amongst the synthetic rubbers, Polychloroprene has the characteristics closest to NRL and provides a very good alternative. Nitrile and Vinyl are stiffer materials with vinyl being the least elastic; however, both nitrile and vinyl have good electrical conductivity properties making them ideal for use in electronics manufacturing or other static sensitive environments such as explosive or combustible atmospheres. In conclusion, it is simple to state that medical gloves should not be used in a cleanroom environment. Medical gloves may appear to be clean (and might even have been sterilised), but in cleanroom terms they can be very dirty. Cleanroom gloves are available in different materials, different shapes, different lengths, different thicknesses and different textures and levels of grip. It is, therefore, important that the person specifying the gloves knows a) what level of performance is required to match their process, and b) what the requirements of the wearers are. For some applications, the selection of the correct glove will be straightforward, but for others a bit more work maybe required. Any good manufacturer of cleanroom gloves will be able to provide written specifications, advice and samples to aid the decision-making process. Derek Watts worked on the original Channel Tunnel project, having graduated in 1974 with a BSc in Mining Engineering from Imperial College. In 1975 Derek joined Philip Brothers (Phibro), the commodities trading division of Investment Bankers Salomon Brothers, which operated 42 offices worldwide. He remained with the company for nearly 15 years, working in London, New York and Bangkok before settling in Kuala Lumpur and becoming the company’s youngest ever Managing Director. In late 1988, correctly forecasting the surge in demand for examination gloves, Derek constructed a gloves factory, quickly moving from standard powdered exam gloves to specialise in powder-free cleanroom gloves. He pioneered many innovations under the Bioclean brand, including the introduction of no-paper packaging of sterile cleanroom gloves for the pharmaceutical industry. Having grown glove sales to over 100 million gloves per annum, Derek sold the business and moved back to the UK in 1996 where he incorporated Nitritex Ltd to import and distribute the BioClean gloves. Under his leadership, the company became profitable within 12 months and has, since then, greatly expanded its product range, opened subsidiaries in four countries to service a global client base and achieved consistent doubledigit annual growth. Correspondence to: Derek Watts, NITRITEX, Minton Enterprise Park, Oaks Drive, Newmarket, Suffolk CB8 7YY, UK. Tel: +44 (0) 1638 663338; Fax: +44 (0) 1638 668890 derek@nitritex.com; www.nitritex.com
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Vol. 9, Issue 10 - March - 2017
COVER STORY
India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors
Indian tea lost T
ea has been one of India’s finest agro-assets for a long time and the final quarter of the 20th century turned out to be reasonably prosperous for the tea producers of India. www.agronfoodprocessing.com
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Vol. 9, Issue 10, March 2017,
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eople who love to eat are always the best people’’ The potential of Indian food and retail segment is enormous. It is projected to touch 482 billion by financial year 2020 which is 250 billion right now. The sector has a huge potential of attracting investment while creating a vast amount of employment. Several studies suggest that around 10 million employment opportunities will be created in next 4-5 years simply by providing impetus to the food industry.
Although our exports of tea had stabilised at around 200 million kg (mkg) per year, there was a steady upsurge in domestic consumption, which contributed to healthy prices in the auction centres. But in the new millennium, the situation seems to have taken a turn for the worse due to a combination of factors.
And of course, there is no better way to appreciate India than its food, the country can create its own "brand value" by focusing on organic farming. We, Indians take food as a spiritual experience and that is why we eat with our hands. Being one of the 17 mega diverse countries in the world, we have a large variety of crops in terms of bio diversity. Strengthening the produce of nutritional foods in this country is also very important. The local organic produce should be included in government programmes, public distribution system. While I see that the future of India food industry is twinkling brightly, the change in PepsiCo Chief Executive Indra Nooyi attitude towards demonetisation is mystifying Nooyi tone that she has adapted to use the opportunity thrown up by demonetisation to push adoption of cash-less payments at the company’s most important points of sale: mom and pop stores. She discussed the matter of digitisation of payments and the impact and implementation of the goods and services tax with the Finance Minister. Irony: PepsiCo was one of the main companies whichwere hit hard by the note ban in Novemberas people cut down on discretionary spending to conserve cash. Now to overcome the loss PepsiCo is working to create a consortium with partners and industry players to enhance digitisation of trade and has set up a three-pronged approach to support the move to a less-cash economy. In addition,it is working with e-wallet companies and is in talks with a state-run bank to push digital payments among retailers. PepsiCo Chief Executive Indra Nooyi also met Prime Minister Narendra Modi and offered the company's participation in the government's efforts to deliver on national development goals, especially in supporting farmers. Our Union Minister of Food Processing, Harsimrat Kaur Badal is quite euphoric about on the fact that the Japanese companies are ardent to invest in India's food processing sector especially in fruits, vegetables, and spices. She had gone to Japan with the members of CII in a missionto improve bilateral trade between the two countries and edify them about what great prospects the India food processing sector provides. She had also met top officials of Japanese food companies. Japan, the fourth largest investor in India is presently sourcing seafood from India and showing deep interest in investing in the food processing industry of India as well as making it a prospective base and export hub. Japan wants to source agriculture produce from India which is non-genetically modified. There is huge potential for Japanese investment in India's food processing sector as only 12 firms out of 380 food companies have presence in the country. Effect of demonetisation is not small, dozens of small Indian dairy firms that could not pay farmers to procure milk owing to cash crunch after demonetisation in November first week, coupled with drought in some states, had resorted to buying skimmed milk powder (SMP) from large players to convert it into milk. This phenomenon of using SMP to make milk in winter -a first in India helped large dairies register abnormal growths in SMP sales, which was also aided by improved demand from institutional players. Usually, large dairies convert excess liquid milk production in winter seasons into SMP to be used for converting it into milk during lean summer seasons. It is the unorganised channel that accounts for more than a third of Indian milk production that suffered the impact of demonetisation and lower milk availability owing to drought in some states. UAE market is a potential market for Indian food products i.e., basmati rice, fresh fruits and vegetables, non-basmati rice, buffalo meat, alcoholic beverages, sheep and goat meat etc. The export of APEDA scheduled products to the UAE market for the year 2015-16 was USD 1371 million. So understandably, along with me, as many as 64 Indian exporters, dealing with a range of agriculture and processed food products, took part in in the Gulffood 2017, Dubai from February 26 to March 2. These firms participated under the banner of Agricultural and Processed Food Products Export Development Authority (APEDA). India exports agricultural products to more than 80 countries world over. The export of Agro products for the year 2015-16 was to the tune of USD 16195.61 Million and after liberalization of trade, fiscal and industrial policies in last 25 years, the economic environment in India is very conducive now for making investment in food processing. As a journo, I constantly analyse the market and the size of Indian and global food industry and believe me, we Indians are making extraordinary mark internationally and undoubtedly at the helm of the trade at the moment.
World production of tea has gone up by nearly 250 per cent from 1,527 mkg to 5,200 mkg between 1975 and 2015. British investors switched their interest from India and Sri Lanka to African countries, mainly Kenya, Malawi and Tanzania, in the 1970s. In China, there was a phenomenal expansion in the area under tea, especially after the collapse of the USSR and emergence of the CIS countries, which led to an increase in the number of buyers in the world market. Vietnam also brought in a larger area under tea to cash in on the boom. INDIA’S POSITION ON THE GLOBAL FRONT Tea is among the world's most widely consumed beverages. One of the biggest markets for tea is the United States where Americans drink 3.6 billion gallons annually and supermarket sales top $2 billion, according to the tea association of the USA. Black tea is predominantly produced and exported by Kenya and Sri Lanka. Green tea is mainly grown and consumed in China. Although black tea is by far the most produced and exported tea, production and exports of green tea are rapidly increasing. Asia-Pacific dominates the global market and accounts for 40% of the total demand in the tea market. The maximum production of tea and the largest areas under tea plantation belong to India and China respectively. Leading teaproducing countries are China, India, Kenya and Srilanka. While production of black tea is growing 3.9% annually, production of green tea is growing 11% annually and herbal tea production is growing more than 15% each year. The trend towards health consciousness, coupled with this increased competitive pressure, will further drive new product development in the next five years, which will in turn drive industry demand. The global market is highly concentrated. However, the presence of large unorganized market in Asia Pacific is expected to impact the profitability of Western producers. Tea Exports from India declined by 14 million kgs in 2012 mainly due to the higher price levels with
Beverages & Food Processing Times
teas from other origins looking more attractive price-wise. Import of tea into India in 2012 was only marginally lower than the previous year. Indian tea exports average 200 million kg with the unit realisation averaging at about `175.30 per kg. India is the world’s second largest producer after China and second largest consumer of tea, accounting for nearly 25-27% of world tea production. India accounts for around 10- 12% of world tea exports. Further, certain varieties of tea (for example, Darjeeling) are grown only in India and are in great demand across the world. However, India has been losing its share of the global tea exports in the face of the threat coming from countries such as China, Sri Lanka and Kenya. Tea Stastatics in India By building on a proud legacy of enterprise that spanned nearly two and a half centuries, India has acquired an exalted status on the global tea map. The country is the second largest tea producer in the world. Interestingly, India is also the world's largest consumer of black tea with the domestic market consuming 911 million kg of tea during 2013-14. India is ranked fourth in terms of tea exports, which reached 232.92 million kg during 2015-16 and were valued at US$ 686.67 million. The top export markets in volume terms for 2015-16 were Russian Federation (48.23 million kg), Iran (22.13 million kg) and Pakistan (19.37 million kg). In terms of value, the top export markets were Russian Federation (US$ 102.48 million), Iran (US$ 87.39 million) and UK (US$ 62.8 million). All varieties of tea are produced by India. While CTC accounts for around 89 per cent of the production, orthodox/green and instant tea account for the remaining 11 per cent. Production of tea reached 1,233.14 million kg in 2015-16. Around 1,008.56 million kg was produced in North India and 224.58 million kg was produced in South India. India has around 563.98 thousand hectares of area under tea production, as per figures for December 2013. Tea production is led by Assam (304.40 thousand hectares), West Bengal (140.44 thousand hectares), Tamil Nadu (69.62 thousand hectares)
and Kerala (35.01 thousand hectares). According to estimates, the tea industry is India's second largest employer. It employs over 3.5 million people across some 1,686 estates and 157,504 small holdings; most of them women. Area under tea cultivation production in 2013-14
(end-2013)
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Indian tea industry likely to touch Rs 36,000 cr turnover by 2017 According to the Agro & Food Processing Times The total turnover of the tea industry in India is likely to touch Rs 36,000 crore by 2017 from the
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Vol. 9, Issue 10 - March - 2017
COVER STORY
steam in the global market It is important to note that from 1970 to 1992, 90 per cent of imports of tea into the USSR were from India! India Growers Seek Subsidies for Orthodox Tea The overseas market for India tea is changing due to demand from the U.S. and Europe for loose-leaf and fine-grade orthodox teas.
to coffee. Losing credibility There has been a rise in preference for Kenyan and Sri Lankan teas over the years. India seems to be losing its credibility as a dependable supplier to the world market, partly because of its burgeoning internal market and partly because of uncertain government policies. Indian tea is averaging below $2/kg at the auctions, whereas Sri Lanka is well above $2 and Kenya is over $3.
These teas bring a higher price, especially when certified organic, biodynamic, and fair trade, but yields are lower and the tea can be more difficult to process. India currently produces 80 million kilos of orthodox tea of which 95% is exported.
Higher yields Also, to be kept in mind is the fact that African yields are higher, they have a more even distribution of the crop because of the equatorial climate and labour wages are much lower.
The cost of production is 13% higher than the cost of producing cut-tear-curl tea, as per the India Tea Association.
What is very disturbing, however, is the disparity in the prices realised for North Indian teas and South Indian teas, which stood at Rs. 70.34 and Rs. 44.64, respectively, in 2000 and has now widened further to Rs. 142.05 and Rs. 84.37, due to quality and consumer preferences. The cost of production of tea in India has gone up steadily and substantially and is now approaching Rs. 100/kg. South Indian teas are languishing at uneconomic levels.
orthodox, Kenya for CTC and China for green tea and, to a small extent, for orthodox tea.
current level of about Rs 19,500 crore. With nearly six lakhs hectares area under tea cultivation, the domestic tea industry is growing at a compound annual growth rate (CAGR) of about 15 per cent. “India is world’s largest consumer, second largest producer and fourth largest exporter of tea after China and accounts for nearly 30 per cent of global output and nearly 25 per cent of tea produced worldwide is consumed in India ,” told DS Rawat, secretary general of ASSOCHAM. “Branded market accounts for nearly 55 per cent of the total market and is growing at about 20 per cent while the unbranded market is growing at 10 per cent annually,” said Mr Rawat. Nearly 35 lakh workers are employed in over 1,500 tea estates across India and about 65 per cent of these are employed indirectly. According to an estimate, the tea production during the current year is likely to stay over 950 million kg as against 966.4 million kg in 2010.
contributor in the tea market segment but with the increasing consciousness on the health issues, green tea sales are picking up. Specialty tea market in India is growing at the rate of 25% annually. Price Realisation In India more than 50% sales of tea is routed through auction at various auction centres located in North & South India. Tea generally moves directly from factory either to auction centre for sale or for direct sale to national or international buyers. Auction buying is much more fragmented and there exists a sizable gap between wholesale and retail prices. There is also a clear seasonality in prices of tea within a year. Another of the variable explaining the variance in auction prices is unit export price. Higher export price raises the bargaining position of sellers at auctions. Export volume also has an influence on the price formation at auctions as higher export reduces domestic availability and hikes up domestic price. Further, lots offered and quantity sold is inversely
“Orthodox tea is labour-intensive as it involves selective plucking of the leaves. Labour costs, which comprise 60% of the total costs, have gone up significantly over the past 10 years while the total cost has escalated by 10% per annum,” according to ITA. “Increasing the subsidy would not only help the planters mitigate the rising costs but it will also boost CTC players to switch over to orthodox tea,” ITA’s chairman Azam Monem said. Five years ago, while the conversion rate accrued by the producers to switch over from CTC production to orthodox production stood at Rs 14–15 a kg, the same rate has gone up between Rs 20 and Rs 30 per kilo. Monem predicted if the India Tea Board, which operates under the aegis of the Union commerce ministry, increased the subsidy, the annual domestic production of orthodox teas will top 100 million kg, up from the existing 85 million kg.
“Awareness about health benefits associated with moderate intake of tea is another significant factor behind this upsurge in its demand as now more and more people are familiar with healing properties of tea,” said Rawat.
According to records available with the Tea Board, the CIS (Commonwealth of Independent States) countries import the highest quantity of tea from India, while, the exports to the UAE and Pakistan recorded a significant increase in 2013. India also imports small quantities of tea not only from Kenya and Sri Lanka but also from other countries, mainly for re-export and blending and value addition.
Hindustan Unilever is the current market leader in terms of sales value with over 20 per cent market share; while Tata Tea is the leader in terms of sales volume with nearly 20 per cent market share.
CTC (cut, twist and curl) tea is the major
Export of tea has remained flat due to increasing competition India is the fourth largest exporter of tea in the world with major export destinations as Russia, UAE, United Kingdom and Poland. Though tea production in India has grown over the last 10 years with a CAGR of 3%, the export has remained static due increase in the domestic consumption as well as increasing competition from other tea producing countries. Tea export from India during 2012-13 was estimated at around 216.23 million kgs valued at `4005.93 crore. Over the year’s tea export has remained flat due to increasing competition from Kenya and Sri Lanka which are able to sell the tea at cheaper price with the same quality level. In India, orthodox tea, CTC tea are main types in which tea is produced, however, green tea is also produced to some extent. India exports CTC grade tea mainly to Egypt, Pakistan and the UK, and the orthodox variety to Iraq, Iran and Russia.
Historically regarded as a hot beverage, the penetration of tea in the non-alcoholic cold beverage segment is another driving force for this industry owing to the rising affinity towards icetea which currently accounts for over five per cent of entire non-alcoholic beverage market in India. The Indian tea industry is presently facing tough competition from China, Sri Lanka, United Kingdom, Kenya and Japan.
Market Segmentation Indian tea market is huge with large number of local and regional players. With the passage of time and due to change in the consumption pattern, there has been diversification and value addition in tea production. In India, tea is consumed in two forms: packaged (branded) or loose. While a major share of the market is of loose tea suppliers, branded tea manufacturers are also fast increasing their market share. The demand for packet tea is driven by rising consumer incomes, quality of tea and product diversification with flavoured tea production. The share of CTC tea constitutes 80% of the tea market followed by Orthodox Tea &Darjeeling Tea. Apart from them there are also a variety of flavoured teas such as green tea, earl grey tea, jasmine tea, ginseng oolong, masala chai, green lemon tea, etc.
Apart from the time-tested effects of supply and demand, a few special events of the last 50 years have had an impact on the tea market.
related with average price realization at auction. Exports stagnant India has been exporting approximately 200 mkg of the beverage per year for over 50 years and we have not been able to increase the quantity, mainly because of our own domestic demand.
Monem did not specify how much the standard 30% subsidy should increase; the rate varies by region and tea grown. In 2015, the Tea Board agreed to increase its subsidy by 25% for orthodox gardens producing organic tea and agreed to pay 50% of the cost of certifying these gardens.
For the period under review, Kenya’s shipments have gone up by leaps and bounds and its exports are currently around 350 mkg per year.
Auction centres There has been a steady increase in auction offerings in India, Sri Lanka and Kenya, proving the effectiveness of this system of marketing for a product like tea, which is plucked and processed on a daily basis, and where quality variations are immense.
Sri Lanka’s shipments have also gone up from 200 mkg to 280 mkg per year. China has also registered a healthy growth to 300 mkg, mostly of green tea, catering to a certain extent to the Chinese diaspora. Indian exports to the USSR, after hitting a peak of 100 mkg per year in the 1980s, have halved in the new millennium to be replaced by Sri Lanka for
Nearly 50 per cent of the Indian production is channelled through the auctions. London, which functioned as a terminal auction centre for tea from 1839, closed down in 1998 due to its shift
Beverages & Food Processing Times
Because rising tea prices and healthy domestic demand, players are expected to focus on the local market. Moreover, import demand from few countries is anticipated to be subdued. Consequently, India’s tea exports are estimated to decline by 5% to 195 million kg in 2014 on account of muted global prices and weak demand from Egypt and Middle Eastern countries due to political uncertainties. On the other hand, exports of orthodox tea, consumption of which is insignificant in India, are expected to rise by 5% to 95 million kg primarily on the back of healthy demand from countries including CIS and Turkey. In addition, global orthodox tea prices are estimated to increase by 10% due to flat global production, particularly from Sri Lanka, the largest exporter of orthodox tea. Global Tea Industry Faces Diverse Challenges Middle Eastern and Asian tea executives were
Contd on Pg no, 38
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Vol. 9, Issue 10 - March - 2017
NEWS
The Versatile Bakery Emulsifier
D
retention of gas (denoted by the arrow marks) with the inclusion of DATEM.
ATEM (Diacetyl Tartaric Acid Ester of Monoglycerides) are glycerol derivatives esterified with edible fatty acids and mono and di-acetyl tartaric acids. It is one of the widely used emulsifiers in bakery applications providing multi-purpose benefits, such as improved and uniform product quality, tolerance towards variations in raw materials and processing parameters, aiding in the production of specialty bakery products using different types of cereals. Wheat flour is the most important and crucial raw material in baked goods. The quality of wheat plays a very important role in baking. The inherent quality of wheat flour depends on the wheat variety, climate and growth conditions.
Dough without DATEM Dough with DATEM
Often there is a challenge to get consistent quality of wheat flour, which is where DATEM helps bakers to overcome the fluctuations. The graph below shows the improvement in specific volume with the addition of DATEM in wheat flour. Effect of DATEM on flour quality DATEM Functionality: Myriad Benefits It is an ionic emulsifier and primarily works as a dough strengthener due to its strong ability to interact with gluten forming a network which gives stability to the dough and further helps in gas retention. DATEM exhibits huge ability to form hydrogen bridges with amidic groups of the gluten proteins, the hydrophobic part of the emulsifier forms a strong network with the ethylene side chains (non-polar) of gluten proteins to form a homogeneous network.
In baking, the quality of gluten is considered to be the prime element responsible for producing baked goods with the right texture and volume.
DATEM also improves dough handling by altering the water binding properties of the dough, resulting in a slightly drier surface. This, together with improved stability, results in easier dough handling and improved machinability as the dough does not stick to the equipment. Versatility in Popular Bakery Applications DATEM upgrades the quality of flour to a better baking quality and minimizes the variation of the flour over the season. This results in positive benefits across multiple bakery applications. For
The presence of a good dough strengthener will improve the ability of the gluten to form a film that can retain the gas produced by the yeast. Higher gas retention ability will always result in better dough tolerance and higher baked volume of the bread. Figure below depicts the improvement in the
Beverages & Food Processing Times
instance: • In biscuits, it improves the emulsification of flour lipids and fat resulting in developing homogeneous dough which improves the eating properties of biscuits. • Improved emulsification of fat also allows reduction of fat from the recipe. It also helps in machinability and facilitates processing reducing pressure on rollers. • It can also aid in reducing the breakages during processing. • In cakes, DATEM is used in combination with distilled monoglycerides and alpha tending emulsifiers like PGMS, PGE for an improved texture and better mouthfeel. • In rusks, it improves the texture and experience in every bite, aids in enhancing crispiness and also fat reduction Conclusion The application of DATEM in baked goods are multiple, right from standardizing the quality of flour to producing fine baked goods with the right textural attributes. They have extensive application in bakery with huge benefits. At DuPont, we put science into action by testing our ingredients in local recipes and raw materials to create value added and cost optimized offerings for our customers. DuPont™ Danisco® has a broad range of PANODAN® DATEM offerings designed for a wide variety of applications.
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Vol. 9, Issue 10 - March - 2017
NEWS
Sainath Sugar delivers practical and value added solutions at competitive prices
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oday, it is hard to imagine a world without easy access to sugar. Of course, Sugar plays vital role in the food and beverage industries. The food and beverage industry in India has Ajit Tubhe experienced immense Director Sainath Sugar growth and is continually evolving in a dynamic way. This is one of the key reasons that many global and foreign companies are shifting their focus on the Indian market. The world production of sugar is about 155 million tonnes annually. Sugar is produced in tropical regions from sugar cane. India ranks second in the world in the production of sugarcane. Sugar is known for its high quality, hygiene and good taste. Most of the sugar production is consumed in the countries of origin, with only about 28% traded in the world market. Sainath Sugar Trading Company is a reputed & highly trusted name in sugar trading since 2010.
We were incepted with an objective to become one of the India's largest traders in sugar.The Sainath Sugar Trading Company was brought to life by Mr. AjitThube. He gave a new dimension to his company. He is dynamic, young entrepreneur, and a skilled trader having vast experience in the field of marketing and trading business. He manages overall administration, information and system field etc. and helps the company in achieving name and fame in the national sugar market. Due to the high experience of company’s head, Saintah Sugaris able to stand in the midst of distinguished sugar suppliers in India. He ventured into sugar trading with an intention to raise capital for his own independent enterprise. Under his leadership, Sainath Sugar Trading Company became the leading traders of sugar to embrace new technology for faster, more effective and affordable services to all clients. Mr. Thube is valued for his understanding of the fundamental and the technical market. The company is mainly trading in physical sugar. The company has spread their operations through out the nation with supply
of sugar in all over India. Purchasing the sugar from various sugar mills and same is sold to sugar food and beverage industries, brokers, consumers, confectioneries, retail clients of other states. Sainath Sugar Trading Company is located at Ahmednagar, well recognized as the middle of the Maharashtra. It is an historical place, easily accessible and is well connected with road and rail transport. Our entity is continuously moving towards the peak of success with growth rate of more than 50 % per annum. Sugar Categories are based on crystal size: small, medium and large. We can supply sugar of following grades : L, M, S, L-30, M-30 and S-30 Out of which maximum production is of S-30 bright sugar. Sugar grading is done for colour and grain size. Sugar produced is regularly matched with N.S.I. standards. S-30 sugar is crystal clear and is known to be sweeter and healthier than many other sugar brands. Natural Sugar is a class of edible crystalline
substances, mainly sucrose, lactose, and fructose. Human taste buds interpret its flavor as sweet. Sugar as a basic food carbohydrate primarily comes from sugar cane and from sugar beet, but also appears in fruit, honey, sorghum, Refined sugar maple (in maple syrup), and in many other sources. It forms the main ingredient in much candy Sugar is produced from the evaporation and clarification of the juice that is extracted from the crushed cane. Company supplies sugar nationwide through trucks. Company purchases the sugar from sugar millers, corporate to carry the supplies.Company benefits their clients in number of ways, including fast and accurate order execution, instant access to information regarding their requirements, personal attention for large & small clients.We can deliver our sugar products in bulk and have achieved a reputed name in the business of supplying sugar. Sugar manufacturing process at our business partner plants takes place under strict quality control measures and produced sugar is nowhere touched by hands. Our business partner plants are always among the first to adopt latest equipment and technology to ensure that our product quality is nothing but the best. They have a highly skilled and experienced team of professionals, who consistently work hard to maintain the quality of our sugar products. They are the most precious assets & the backbone of our company and their main motto is to provide utmost level of satisfaction to our customers. To meet the requirements of sugar, we, Sainath Sugar Trading Company, have maintained strong business relationships by instilling espoused values of respect and integrity towards clients since foundation. It is this hard earned reputation of offering personalized and efficient service that has positioned us as one of the noted traders and service providers in this domain. Reliance on establishing sound relationship with our clients help us in offering a wide gamut of sugar. Relying on the expertise and rich experience, we provide total solution to our customers by offering a wide range of high quality sugar at market leading prices. Our market expertise and resources have assisted in offering a premium range of sugar to clients. Being the reliable supplier, we procure qualitative and durable range of sugar from authentic sugar industries. Our associations with the well known sugar industrieshave helped us in sourcing only best grade of sugars in the market. Besides, our tireless efforts in holding cordial relations with them aid us to offer optimal satisfaction to clients. Moreover, with advanced thoughts and rich
www.agronfoodprocessing.com
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
COVER STORY
Contd from Pg no, 35 is no longer seeking to compete with countries like Vietnam on the low end of the market. The three-year price of exported tea averages $1.64 per kilo in Vietnam. In China the three-year average has increased to $3.86 per kilo. China imported 23,000 metric tons of tea in 2015 indicating a brisk upsurge of 13.2% but paying only $110 million U.S. China’s tea imports are up 15.7% CAGR. Domestic consumption was 1.72 million metric tons. Only 33% of the population drinks tea daily, according to Yu Lu but the base grew from an estimated 443 million in 2014 to 471 million, up 6.3%. China has a population of 1.367 billion people. Tea for home use is still relatively expensive for much of the country. Bulk tea is sold at prices ranging from 400 to 1000 RMB per kilo ($62 to $155 per kilo).
resolute in the face of diverse challenges identified last week at the biennial Global Dubai Tea Forum. The group of 390 executives welcomed back into the fold their colleagues from Iran, the world’s fourth largest tea consuming nation per capita and a significant exporter in the years prior to global sanctions imposed by the United Nations. The sanctions were lifted in late 2015. “What sanctions did to us was to reduce the ease of transfer and increase prices. We were not able to obtain suitable machinery. Now there will be an easing of trade all around the world and we are going to have modern technology,” said Mitra Mobayen, who manages Iran-based Tala Tea Co. Another noteworthy development was the announcement that the Dubai Multi Commodities Centre (DMCC) will launch a premium tea brand called Shay Dubai. The Global Dubai Tea Forum was hosted by the DMCC’s Tea Centre, a trading arm of the government of the United Arab Emirates (UAE) an alliance of seven sheikdoms with a population of 9.5 million. This was the 6th edition of Talking Tea. Ahmed Bin Sulayem, executive chairman of the DMCC, told attendees the brand is not positioned to compete with Lipton: “Shay Dubai is DMCC’s very own signature high-end tea brand. We’re excited to share a first look at this new product here,” he said. Flavors include Khaliji Blend, Dubai Spirit, and Arabic Breakfast but were not available for sampling. The DMCC Tea Centre is now the world’s largest re-exporter of tea, processing 41 million kilos in 2015 (90 million pounds) which is more than triple the 13 million kilos processed in 2013, according to Tea Centre Director Sanjeev Dutta. Globally demand continues to outpace supply with auction prices at lows last seen in 2008. Civil wars and social unrest continue to weigh heavily on the business of tea. Economic doldrums globally and the depressed Russian and CIS tea markets received a lot of attention.
trends only marginally affecting price behavior,” said Sangeeta Kichlu, president of marketing with Assam Company India, Kolkata. India is experiencing setbacks due to changing weather patterns that reduce yield at a time when demand is rapidly growing as a result “India is expected to become a net importer of tea.” Leading international packeteers “are eying India for their future growth,” she said. Kenya in 2015 accounted for 25% of global exports, China’s share of exports rose to 18%, Sri Lanka fell to 17% and India exported 12% of the world’s tea. Sri Lanka continues to lead the exporting countries with a three-year average price of $4.66 per kilo, the price of Chinese tea averages $3.86 per kilo; Indian exports averaged $3.26 per kilo and Kenya’s three-year average price for the tea it exports was $2.67 per kilo, according to ITC which is celebrating its 80th anniversary. Prices are FOB. Middle Eastern imports are way down at 218,470 metric tons compared to 226,930 in 2014. Five years ago Middle Eastern countries imported 250,000 metric tons of tea annually. The Russian Federation imported 3,000 fewer metric tons in 2015 and imports to the CIS countries fell by 4,000 metric tons with Ukraine and Kazakhstan showing the greatest declines in the past year. Two developments: the re-entry into the export market by Iran, a major producer of tea and tea growth in the United States market were upbeat. The U.S. last year was the only major tea consuming country in the world to report increases in consumption and tea imports. Ready-to-drink tea, which holds the largest value share in the U.S. tea market was up 6.1% last year, according to the Beverage Marketing Corp. Yu Lu with the China Chamber of Commerce for Import/Export of Foodstuffs provided key insights into the growth of the country’s tea industry. Production was 2.28 million metric tons in 2015 growing at a compound annual rate of 9.2%. Exports are growing as well at 1.4% to 325,000 metric tons in 2015. “Export value is growing steadily to $1.38 billion in 2015,” she said. China
Iran’s Mitra Mobayen, told attendees annual consumption of 1.4 kilos per person in the country of 78 million was sufficient to sustain the domestic industry. It will take some time to modernize and secure traditional export partners who long ago turned to other suppliers. During the past 10 years, the “harvest and cultivation unfortunately has been decreased due to climate and economic efficiency” but he predicted a return to global prominence. The US is now the world’s third largest tea importer, closing in on Pakistan. During 201014 the aggregate value of imported tea rose 17% to average $3,439 per ton. But the volume of tea imported into the US rose only 2% during the 2010-14 period, according to Packaged Facts. Hot tea is prepared at home by 54% of tea drinkers followed by iced tea at 51%. Single serve capsules account for 13% of dry tea sales. Last year RTD tea generated $5.56 billion in sales. Challenges for the Indian Industry Fluctuations in the Production due to climatic changes – Climate that is conducive to tea growth is one in which there is sunlight during the day and rain at night on an almost daily basis. Although the quantum of rain has not changed much, the frequency has reduced and the rise in temperature has adversely affected photosynthesis in the plants. These climatic changes have resulted in lower crops as well as a higher incidence of pests and diseases and yields are showing a downward and erratic trend. The production of tea is not same round the year. There is a wide variation in the monthly production of tea. Although total tea production in south India is less, but as far as the productivity is concerned they are better than rest of the country because of the climatic condition of the Southern states. In North India, there is a dormant winter period, therefore, the growth of tea bushes stopped and hence the productivity goes down considerably. Climatic conditions not only affect the productivity but also the quality of leaves harvested. Slower pace of replantation – India’s productivity has not picked growth due to slower pace of re-plantation of old bushes. With no substantial increase in tea acreage the increase in productivity can be achieved through the re-plantation of old bushes. Lack of bush replantation and rejuvenation of bush health are major
The market for tea exports is weak, reported Manuja Peiris, chief executive of the International Tea Committee. The average price for tea was $2.40 per kilo last year, down from a high of $2.65 in 2012 and slightly below the recent recessionyear averages of $2.42 per kilo. Demand continues to rise and while tea growers produced 5.2 million metric tons in 2015 — domestic consumption in the producing countries left only 1.75 million metric tons or 34% of the total harvest for export. The availability for export is down from 2006 when 43% of the annual crop was exported. India alone consumes 911 million kilos annually — 19% of the world’s tea. “India operates in a cocoon with international tea
Beverages & Food Processing Times
deterrents for Indian tea production. Over 1,48,305 hectare or 37% of entire Indian tea land is hosting bushes over 50 years of age those which have crossed their optimum producing age. Compared to that, over 70% tea land in Kenya and 68% in Srilanka are with bushes less than 40 years old. Entire tea plantation in Vietnam is less than 20 years old and near 35% of Chinese tea plantation is less than 10 years old. High cost of production and low productivity – The production entails risk on account of weather conditions and falling prices. Labour cost is quite high since hand picking of tea is labour intensive. To reduce the cost, some plantations are resorting to longer picking cycles; say 15 to 18 days against the ideal 10 days. On top of this, they are also harvesting three or even four leave which is resulting in poor quality and is fetching low prices. The ideal is two leaves and a bud. The high cost of production is affecting the Assam tea’s competitiveness in the global market. Increasing competition in the Global Tea Market – India is a major exporter of CTC tea and faces stiff competition from Kenya. Demand for Kenyan
teas is increasing due to relatively younger bushes which are of higher quality and is better suited for tea bags. Their labour costs are comparatively lower. Therefore, the tea industry in Kenya is more competitive than the Indian tea industry as is reflected by India’s diminishing leadership in key markets. Coffee acting as a strong substitute to tea - Apart from the severe competition that the country is facing from other tea producing countries, coffee is emerging as near perfect substitute and is posing greater challenge to the consumption of tea as many coffee outlets have been opened by Barista, Cafe Coffee Day and others. The branded tea players must aggressively take on these challenges and their success will hinge on the supply of high quality premium tea as well as organic tea. Outlook Indian tea industry is expected to cross turnover of nearly ` 34k crore by 2017 driven by upsurge in demand from domestic market. Consumption of tea has increased as compared to production and this will help in better price realization. However, India needs to draw several initiatives in order to strengthen the stand in the global market and tap the potential market by improving the standards of plucking thereby enhancing the quality of the product sold. The export growth of the tea has been on a decline and this has resulted in lack of competitiveness in the global market. New strategies aimed at adding value and reducing production and marketing costs are also needed. Value addition and diversification for a wide range of tea products need to be developed for balancing the supply demand scenario. We believe that the Special Purpose Tea Fund (SPTF) set up by commerce ministry to implement uprooting and replanting programme would help in improving productivity and yield and thereby reduce cost in coming years.
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Vol. 9, Issue 10 - March - 2017
NEWS
Pure water straight from the sky
EXPERIENCE THE PURITY IN EVERY DROP OF
XTREME DRINKING WATER We Provide :
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4/1, Priyadarshani Parisar (West), Bhilai- 490020, Chhattisgarh Contact- +91 9300038826 Email- business@xtreme.co.in www.xtreme.co.in
Bry-Air launches the Bry Smart Dehumidifier serie with patented technology
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ry-Air recently launched a new series of Dehumidifiers, the” BrySmart Dehumidifier… BBS series”, which has two patented technologies, BrySmart® and BryTherm™, embedded in its architecture. This super, intelligent dehumidifier can deliver a baseline additional 20% saving plus a further additional 48% saving, with the respective incorporation of the BryAir high performance rotor and the BrySmart™ and BryTherm™ patented technologies. The product modulates various critical components to optimize the energy consumption and moisture removal on a continuous basis. The eco-friendly dehumidifier is a step forward 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. The BBS integrates futuristic trends like Industry 4.0 and ISO 50001, which gives the users the edge in their technology upgradation and energy conservation. Bry-Air,
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worldwide has been at the forefront of energysmart adsorption and airgineering technologies having filed 107 international patent applications for 12 new technologies. Out of which 22 has received grants. Bry-Air is fastest growing adsorption technology group in the world. With over 50 years of experience, Bry-Air is a global leader in manufacturing dehumidifiers & dryers, gas phase filtration systems, high temperature heat recovery wheels, plastic auxiliary equipment, and adsorption chillers. Bry-Air is one of the flagship company of the Pahwa Group. The group has 11 manufacturing facilities in India, Malaysia, China, Brazil, USA (associate plant) and 8 R&D laboratories in India.
dehumidification
This festive season celebrate with the taste of Ghasitaram Authentic Traditional Sweets & Namkeens
Punjabi Ghasitaram Halwai. Specialist Confectioners of the highest quality of India traditional sweets & Namkeens are prepared under the most hygienic conditions are having base in Mumbai supplying superior products world over,since 1916 A tradition of spreading sweetness for more than 99 years.
Punjabi Ghasitaram Halwai Pvt.Ltd Factory & Ofce : G. Ghasitaram Estate, Jasmine Mill Road, Mahim (East)Mumbai -400017. Maharashtra INDIA Tel. No. +91-22-24090001 /24090203/24033636/37 Fax: +91-22-24092790, Email:info@ghasitaram.in, ghasitaram@gmail.com web:www.ghasitaram.in
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
NEWS
Buhler builds partnerships GE Mustard assessed over with science to address period of 10 years for safety mycotoxin risks Advanced grain cleaning solutions significantly reduce mycotoxin levels
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ycotoxins, produced by fungal mold, are a growing health threat to people and animals. With a quarter of the world’s agricultural produce currently contaminated, according to the FAO. Mycotoxins ranks a third most important threat after bacteria and pesticides, which is why maximum tolerance levels permitted in food and feedstuff are becoming crucial for food and feed producers. Meeting these requirements is possible with the right processes in place. Academic studies within the European project MycoKey and practical experience confirm that a very effective means to significantly reduce mycotoxin levels is via cleaning and optical sorting processes. Buhler solutions improve food and feed safety and product quality, helping customers adhere to regulatory requirements while achieving higher margins. The need to protect the health of humans and animals by limiting exposure to mycotoxins from grains is increasingly imperative, particularly in light of a recent United Nations (UN) report which confirmed the impact of climate change on food safety and security. It’s evident that extreme environmental conditions such as drought and rising temperatures have triggered an upsurge in toxic crops. This dangerous progression was identified as an “emerging environmental issue of our time” by UN Environment Programme (UNEP) in a 2016 report (Toxic Crops and Zoonotic Disease). Previously more prevalent in tropical and sub-tropical regions, mycotoxin contamination is now on the rise in temperate regions – meaning it will increasingly become a food safety issue for Europe even if global temperatures can be limited to an increase of only 2-degrees Celsius, which UNEP deems unlikely. Climate change is increasing the prevalence of aflatoxin, one of the most poisonous mycotoxins. Mycotoxin scares have already been making headlines in Central Europe, such as a scare caused by aflatoxins in 2012-2013. At that time, headlines were dominated with the news that unsafe levels of the toxin were found in milk intended for human consumption as a result of dairy cows feeding on contaminated maize. For example, aflatoxins have been found in Italy, Hungary, and Romania. Mycotoxin levels in grain are a frequent reason to reject raw material for food and feed processing. Scarcity of raw materials, on the other hand, requires the industry to look for new solutions along the value chain. Knowing that just a few highly mycotoxincontaminated kernels could make an entire grain lot unsafe for further use, it’s essential to implement post-harvest measures which reduce mycotoxin levels to ensure safe products, while ensuring economical yields and reducing losses. “Ultimately, it’s the prevention and reliable removal of mycotoxins as early as possible in the value chain that ensures the safety of foodstuffs produced for all consumer groups,” explains Matthias Graeber, expert in mycotoxin reduction and data analytics within Buhler’s Corporate Technology Group. Finding solutions to mitigate such food and feed safety issues is of critical importance to Buhler. The company invests roughly 5% of its turnover
in research and development every year – creating breakthrough technologies and market-specific solutions to help its customers achieve long-term commercial success despite growing regulatory requirements and regardless of incoming product quality. Buhler has been partnering with science and applied research for many years in order to learn more about the value of integrating cleaning measures along the value chain. One such collaboration is with the experts from the European Horizon2020 project, MycoKey, which was initiated in mid-2016 to develop solutions for reducing major mycotoxins in economically important food and feed chains. The 6.4-millioneuro project has partners from 32 organizations from a total of 14 countries in Europe, Asia and Africa. Together with Buhler and some of our customers, MycoKey, has run multiple, largescale field tests to collect valuable data on the performance of grain cleaning solutions. A recent research activity specifically looked at the case of ergot alkaloids: To support its industrial milling customers in managing the growing risks associated with mycotoxins, Buhler initiated a study performed at two German rye mills to establish how the level of EA’s can be influenced by grain cleaning and milling processes. The study was carried out by Buhler with two industrial partners, a large milling group and an independent food safety laboratory. Applying the official sampling guidelines of the European Union, 10 rye lots at 12 tons each were tested at two mills. “Effective reductions of EA concentrations were found for the processing steps: separation by size (Combi cleaner, rotary screen), optical sorting (SORTEX), and surface treatments (scourer with aspirator). By far the highest statistical significance of EA reduction could be obtained by optical sorting,” Graeber explains. “This confirms the central importance of optical sorting in the rye supply chain, both at grain reception facilities and in mills.” The case for reducing levels of mycotoxins of any kind is clear considering the implications on consumer and animal health as well as to the commercial success of milling companies. Buhler technologies help achieve commercially viable yields – regardless of incoming product quality. For example, in a specific case the company has helped an Italian corn producer to recover 70–80 percent of contaminated maize and boost it from biomass to feed grade quality. Besides the obvious commercial sense of utilizing Buhler processes, they also make an important contribution to reducing post-harvest losses on a global level. Matthias Graeber joined Buhler in 2010 and since then has held various positions in corporate strategic innovation within Buhler’s Corporate Technology Group. He is an expert in mycotoxin reduction, online sensors, and data analytics, and currently leads the build-up of a data science team for Buhler’s Internet of Things (IoT) initiative. A physicist by education, he received his Master’s Degree from the State University of New York at Buffalo, USA, and his PhD from the University of Basel in Switzerland.
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he government said Genetically Engineered (GE) Mustard has been assessed over a period of ten years for safety to environment and human health under the oversight of 3-tier statutory regulatory committees with external experts. “Under the rules for manufacturing, use/import/export and storage of hazardous microorganisms/genetically modified engineered organisms or cells (Rules 1989) of Environment Protection Act 1986, all genetically engineered products have to undergo a step-bystep food and environmental safety assessment in accordance with technical guidelines published from time to time. “Following this process, the GE Mustard has been assessed over a period of ten years for safety to environment and human health under the oversight of three-tier statutory regulatory committees with external experts from laboratory to confined biosafety research field trials,” Environment Minister Anil Madhav Dave said in a written reply in Rajya Sabha.
He said his ministry on its website has published a detailed assessment of food and environmental safety document on GE Mustard for written public comments. “This document explains in detail the basis for ecological safety of GE mustard based on molecular characterisation and evaluation of
weediness potential, crossability and gene flow studies, studies on soil microbial community and pest disease and beneficial organisms.” Various farmers organisations, including that affiliated to RSS, and environmental activists have been opposing commercial cultivation of GM mustard. The country’s biotech regulator Genetic Engineering Approval Committee (GEAC) has recently sought public comments on the safety aspects on GM mustard variety developed by Delhi University’s Centre for Genetic Manipulation of Crop Plants. Following this, the Environment Ministry has received over 700 comments from various stakeholders, including farmers and researchers, on the assessment of food and environmental safety (AFES) report on environmental release of genetically engineered mustard. With anti-GM activists opposing the approval for GM mustard and upping their ante against the “unscientific” appraisal process, the Environment Ministry had said that after evaluating all the comments, the subcommittee will submit its final report to the biotech regulator GEAC.
Fast and cost effective tank cleaning machine
Save upto 60% time and 70% water with this new powerful tank cleaning machine
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ast and cost effective cleaning Saving time and water are some of the KPIs which have the most attention in the hygienic industries. The new Alfa Laval TJ40G rotary tank cleaning machine uses a high-impact jet stream to effectively clean tough tank residues and minimize the risk of product contamination. This four-nozzle rotary jet head also cleans tanks 60% faster than static spray ball technology, which increases production uptime. And because it cleans faster, this new device uses less water and less cleaning agents thereby reducing operating costs by up to 70%. The Alfa Laval TJ40G is capable of handling tough tank residues as well as solids up to 1mm in the cleaning fluid in tank sizes 50-1000 m³. This is particularly important for demanding process lines, such as applications within the brewhouse, where both the size and the amount of particles may be re-circulated in cleaning media before completing the cleaning cycle. Complete self-cleaning system Not only does the Alfa Laval TJ40G rotary tank cleaning machine provide spotless cleaning of the tank interior, it also cleans itself – inside and out. Its hygienic self-cleaning construction ensures that the flow of the cleaning fluid reaches the exterior surfaces of the rotary jet head, as well as the critical interior components such as all bushings, bearings, and inner surfaces. This minimizes the risk of product contamination and ensures a high
Beverages & Food Processing Times
product quality. Alfa Laval's rotary tank cleaning machines are designed with numerous of features to ensure selfcleaning of the machine, such as directional flow from small jets in the hub that cleans the exterior of the machine. A low-pressure loss over the machine provides increased cleaning efficiency compared with other tank cleaning machine running at same inlet pressure. This result in lower cleaning cost as the unit can run at lower pressure/flow compared to other tank cleaning machines. All Alfa Laval rotary tank cleaning devices comply with Good Manufacturing Practice (GMP)
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Vol. 9, Issue 10 - March - 2017
NEWS
Announcing the Exponential Advancement in Dehumidification Technology
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. 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. 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 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 process bypass is installed. No top-up heater is required and is designed aesthetically for ruggedness and long life. The eco-friendly dehumidifier is a step forward 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. 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.A Pahwa Group company, Bry-Air Asia has 3 state-of-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.
Kirloskar Pneumatic Co. Ltd display their products at ACREX INDIA 2017
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ioneering industrial revolution in India, Kirloskar group has contributed immensely in every field of its operation during their 120 year-long journey. They hold a place of repute in the industry for its good business values and customer focus. The company started its operations with the manufacture of Air Compressors and Pneumatic Tools. New product lines were then added, including Air Conditioning and Refrigeration systems,Marine HVACR, Process Gas systems and Hydraulic Power Transmission machinery. It has also earned an enviable reputation for its Systems Engineering and Turnkey Project expertise. KCX Series Air Cooled Reciprocating Refrigeration Compressor for Potato Cold Stores. KPCL's reciprocating compressor range includes AC, FK, KC/KCX, PC Series models of compressors used in varieties of applications. The reciprocating range of refrigerant compressors has wide applications in the area of industrial refrigeration which includes food & beverage processing and preservation, ice plants, process refrigeration which includes pharmaceuticals, chemicals etc. The range also caters to HVAC applications including water chillers etc. Superior COP values at full and part load operation, modest investment and low maintenance cost is some of the benefits of KPCL's refrigeration compressor that makes it the first choice of customer. These Compressors are suitable for use with R-22, R-717 and
Beverages & Food Processing Times
R-134a and other HFC's. These are the features of their equipment provided by Kirloskar High reliability Steel fabricated CC, low vibration, low noise level Superior quality wear resistant parts Quick service access for easy maintenance Safer Design - easy to install and to package Wide capacity range Fabricated modular rugged construction Modular Construction Kirloskar Pneumatic Co. Ltd had displayed its KRX Series Screw Refrigeration Compressors and AirCooled KCX Series Reciprocating Refrigeration Compressors for different applications.
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Vol. 9, Issue 10 - March - 2017
FRUITS NEWS
Fruits and vegetables help tackle depression in 2 weeks
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esearchers have now proved the psychological benefits of a balanced meal. They have found that naturally-grown food can potentially tackle depression in as little as two weeks. A lot has been said about the health benefits of inculcating fruits and vegetables in our daily diet. Hence consuming fruits and veggies is beneficial for mental health. Researchers from the University of Otago studied
171 adults aged between 18 and 25 about their dietary habits. They were split into three groups to the effects of having a diet high in fruit and vegetables. Over a period of 15 days, they either continued eating as normal, or were encouraged by text reminders and pre-paid vouchers to eat more fruit and vegetables. Or they were personally given two extra daily servings of fresh produce (carrots, kiwifruit, apples, and oranges). Those in the last group reported significant improvements
to their psychological well-being, with boosts in vitality and motivation. However, those reminded by text and given vouchers did not show a similar improvement. When surveyed, it was found that more likely to have eaten cooked vegetables in casseroles or mixed in with other meals. Study author Dr. Tamlin Conner said: 'The message from this study is we should be giving people more fruits and vegetables to eat, not simply reminding people to eat their 5+ a day. 'People in dormitories, children in daycare centres, patients in hospitals, employees in the workplace, could be provided with fresh fruits and vegetables on a regular basis.' She further added that research is needed to address whether eating more fresh produce might make differences to people's ill-being, including conditions such as depression.
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
NEWS
Naturex rides America’s organics boom
ales of Naturex’s organic ingredients in the US have more than doubled in the past two years, thanks to the boom in America’s organic food and beverage market – the value of which grew 11.6 per cent to $36.9 billion in sales in 2015. The natural ingredients company has been expanding its organic product offer in response to this trend, and now offers a total of 50 organic ingredients – a third more than two years ago. Naturex supplies organic botanical extracts, natural colors and fruit & vegetable powders for use in a range of food, beverage and nutraceutical applications. Turmeric, moringa, acerola and cranberry are among those ingredients driving Naturex’s increased organic sales, and all will be a central focus for the company at the forthcoming Engredea trade show in Anaheim (10-12 March 2017). Exhibiting at Booth #639, Naturex will showcase its traceability program, which guarantees that all of its organic extracts meet the highest standards of quality and authenticity. Tipping point TimothéeOlagne, Naturex’s Marketing Director for Nutrition & Health, said: “Sales of organic products in the US have been enjoying steady growth for several years now and they have reached a tipping point that has taken organic into
the mainstream. The organic market is strategic for Naturex as it is at the center of our mission to bring cleaner, healthier and more nutritious natural ingredients to market. We are very well positioned and we will continue to develop our organic range of natural colors, functional botanical extracts and fruit & vegetable based ingredients.” A new nutrition prototype based on organic moringa powder will take center-stage for Naturex at Engredea 2017. The Moringamulti concept contains Naturex’s unique full spectrum moringa powder, standardized to 1% Omega 9 and 600ppm vitamin E. It is combined with whole acerola powder standardized to 34% vitamin C and mushroom powder standardized to 5,000IU/g of vitamin D. All of the ingredients in the concept product are certified 100% USDA organic. MrOlagne added, “As a result of our cross-market expertise, Naturex can offer an extensive range of organic ingredients for all kinds of food, beverage and nutraceutical applications. With demand for organic products rising fast in the US, there has never been a better time to explore how natural organic ingredients from Naturex can help you to tap into this trend successfully.
'Health Bistor Menu' launched by Red Mango in India
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ne of USA's authentic frozen yogurt & smoothie brands, Red Mango known for its all-natural frozen yogurt, fresh fruit smoothies, and probiotic iced teas has entered India market with a new dimension to healthy eating. Red Mango in India brings in the best of flavours and nutrition from both West and the East, thus making it a truly international 'nutrition Alphonso Mango Pulp food player'. Totapuri Mango Pulp It is launching a new dimension to healthy eating with the introduction of its new line of food called 'ACTIVE FOOD' with an entire variety of value meals packed with natural ingredients made fresh at the cafes. The brand is launching its new food which is less than 300 calories. Have introduced grills and meal bowls and a whole range of healthy burgers and will launch the new food first in Cyber Hub Gurgaon. Red Mango also brings in an entire gamut of top-of-the-line health
Beverages & Food Processing Times
foods to the consumers which includes - 'Power Smoothies', 'Probiotic Parfaits', 'Gourmet Waffle', 'Iced Beverages', 'Snack Healthy', Probiotic Ice Teas, 'Warm and Chillax coffees' and others.
Anjeer
Custard Apple
Pineapple
Lychee
Alphonso Mango Slice
Strawberry
Chikoo
Kala Jamun
Pomegranate
Papaya
Blueberry
Raspberry
Kiwi
Cranberry
Guava
Blackberry
Mulberry
Peach
Shredded Coconut
Green Peas
American Sweet Corn
Mix Vegetables
Carrot
Shelled Corn French Beans
Mandar Food Products
(An ISO 9001:2008 & ISO 22000:2005 Certified Company)
Office -17/1/5, Parge Nagar, Opp. Sai Service Station, Kondhwa Budruk, Pune– 411 048, Maharashtra, India Website – http://www.mandarfoodproducts.com Email : mandarfood@rediffmail.com, mandarfood@gmail.com
Proprietor – Mr. Shrikrishna V Malpure Mobile : +(91) – 94220 36531
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Vol. 9, Issue 10 - March - 2017
SNACKS NEWS
‘Snackification’ of mealtimes is now widespread among Millennials, researchers find New survey reveals behaviors and preferences of Millennials who snack regularly
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ost American Millennial snackers eat a snack in place of a standard meal at least once a week, a new survey reveals. Researchers in the US questioned snackers between the ages of 18 and 35 about their snacking habits and preferences. When asked how often they eat a snack instead of having breakfast, lunch, or dinner, 92% of them said they do so a minimum of once a week. Furthermore, half of the respondents said they replace a meal with a snack at least four times a week, while more than a quarter (26%) said they do so at least seven times a week. The online survey of 300 male and female American Millennials who snack regularly was commissioned by Welch’s Global Ingredients Group, the supplier of FruitWorx real fruit pieces and powders, and was conducted in January 2017 by independent market research company Surveygoo. The findings shed light on the true scale of the ‘snackification’ of
mealtimes among Millennial snackers, an oftenreported but rarely measured phenomenon. This trend could reflect American Millennial snackers’ busy lives. They are snacking both at home and on the go, with 48% of Millennial snackers consuming snacks at work and 34% in the car. When asked why they snack, 39% of Millennial snackers said they do so when they are too busy to eat a proper sit-down meal, while 17% admitted to doing so when they ‘can’t be bothered to cook a meal’.
be convenient for their busy lives and contribute to their daily nutrition needs. Our survey findings tell us that there is an opportunity for snack products that can check all of the boxes – taste, convenience and natural nutrition.” True American superfruit The findings from the survey highlight the importance of using specific ingredients when creating snack products. Key learnings point towards demand for those that deliver excellent taste, convenience, and authentic nutrition, with a preference for whole food ingredients that offer a strong story around provenance. FruitWorx inclusions by Welch’s Global Ingredients Group are real fruit pieces for snacking and baking products that satisfy these criteria. They are made from the Concord grape, a distinctive, dark purple grape variety with a sweet, bold flavor grown in North America by Welch’s nearly 1,000 family farmers. In combination with an exceptional flavor profile, it delivers natural plant nutrients called polyphenols. It is a true American superfruit.
When respondents were asked which factors are important in guiding their choice of snack, the three most important were taste (80%), nutrition and health (52%) and convenience (49%). They also said they are looking for whole food ingredients, such as wholegrains (43%), real fruit (42%) and nuts (39%). Besides valuing real fruit, American Millennials who snack also prefer to know the origin of the fruit in their snacks. In total, 68% of survey respondents said it was important for them to know where the ingredients in their snacks, including the fruit, had come from.
Concord FruitWorx pieces provide the same bold flavor and polyphenols as the fresh fruit from which they were made. In fact, Concord FruitWorx delivers more than twice the polyphenols as the leading brand of sweetened dried cranberries, and three times as many polyphenols as the leading brand of raisins. Now available to food manufacturers throughout
Wayne Lutomski, Vice President International & Welch’s Global Ingredients Group, said “The survey quantifies and expands on what we already suspected: the replacement of mealtime with snacktime among Millennial snackers is widespread. These consumers need their snacks to the USA, FruitWorx real fruit pieces are made using a unique technology called ultra-rapid concentration (URC®), which was developed by Taura Natural Ingredients. Wayne Lutomski concluded: “With URC®, Welch’s Global Ingredients Group is able to deliver the goodness of the Concord grape in a format that’s perfect for a multitude of snack applications, and which taps into the trends highlighted by our survey. As we have found, American Millennial snackers are looking for their snacks to deliver great taste and authentic nutrition benefits. With FruitWorx pieces, snack manufacturers have an opportunity to meet the exact needs of this consumer and bring winning products to the marketplace.”
www.agronfoodprocessing.com
Beverages & Food Processing Times
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Vol. 9, Issue 10 - March - 2017
CHOCOLATE NEWS
Nestle uses Cupid to beat tepid growth in chocolates segment
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estle India is made use of Cupid power to warm hearts with a personalisation initiative for Valentine’s Day (February 14). Since the chocolate segment is witnessing tepid growth, this can boost the sales of chocolates in the country. It has roped in author Anuja Chauhan to launch special packs of its premium chocolate brand, Alpino, that are wrapped carefully in crafted “Love Notes”.
Alpino in select cities “Alpino Love Notes with Anuja Chauhan” will allow consumers to share these messages online.
General Manager (Chocolate and Confectionery) - Nestlé India, Nikhil Chand said, “One of the key trends that is emerging in India, especially in the premium segment, is personalisation. We are taking personalisation to the next level through this campaign. The premium chocolate category is competitive and we want to make sure Alpino is Known for her romantic novels, Chauhan has uniquely positioned in this segment. We are trying written these customised “Love Notes” that the to offer consumers an authentic experience by company will also later release as an e-book. helping them express love with these customised Over 3,000 of these special edition packs will be messages.” sold across modern trade stores in select metros. The company, first introduced Alpino in India Nestle has tied up with retail chain More to offer in 2013, re-launched it late last year, with a personalised calligraphic cards with every pack of new formulation and packaging. “We significantly changed the taste of the product, making it more indulgent and have given its packaging Modular Cold Storage Clean Room Operation Theater a facelift with a sharpened positioning. We have seen good response,” Chand said. Recently the company expanded the Alpino brand portfolio with Electronic Laboratory Ripening Chamber Plastic Components Clean Room an imported range of premium chocolate Leveraging On Two High Technology Production Units, Everyoung Polymer bars. And Energy Engineering Pvt.ltd. Has Been Meeting The Bulk Requirements Of “Our approach has Customers Within Stipulated Time Frame. Established In The Year 1990, We Are Known As A Leading Manufacturer Of Cold Storage, Clean Rooms, Walk In been to make sure we Cooler, Porta Cabins, Ripening Chambers, Refrigerated Vehicles, Etc. We offer a full spectrum Procure High Quality Raw Materials Like Mdi, Polyol, Pcgi Sheets, Cam Locks, of products across Gaskets, Hinges Etc. From The Leading Brand Names To Design Products As Per various segments. We The Defined Quality Standar have been focusing on being innovation leaders by launching new products such as EVERYOUNG POLYMER & ENERGY ENGINEERING PVT. LTD. Munch Nuts and KitKat AddressI-102, BHARAT BHAVAN-B, 1360, SHUKRAWAR PETH, Duo in recent times NATUBAG, Pune - 411002, Maharashtra, India which were backed by Mob: +919325580086, Phone: 91-20-24485150/24473015 innovative marketing Email: intimatepuf@gmail.com campaigns,” he added.
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Cadbury Dairy Milk Silk Oreo launched
eading chocolate and confectionery maker Mondelez India has launched Cadbury Dairy Milk Silk Oreo in the premium category with an aim to expand its footprint further in the chocolate category. Mondelez India has a market share of over 65 per cent in the Rs7,500 crore, with Cadbury Dairy Milk portfolio enjoying 41 per cent market share. Mondelez India Director-Marketing (Chocolates) Prashant Peres said, “The next few years will be
exciting for us especially with India’s chocolate market poised to be one of the fastest in the world. We see this as a huge opportunity to expand our chocolate footprint within the country.”
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.
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.
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.
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.
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.
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.
WOW Design’s Partner and Executive DirectorSaswata Das, said, “The rapid growth of the flavored milk beverages category in India has
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”.
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COLDTNSPOTCOCOMMERCIALSSAPPLIANCES., 1616, Sreegandhada Kaval, Viswaneedam Post, BANGALORE-91 Mob : +919448377834 Ph : +91-80-28361447 / 28361448 E-mail : elpelabs@gmail.com
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Reg. No: 21214186000108.
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Vol. 9, Issue 10 - March - 2017
SEA FOOD INDUSTRY
Seafood industry and Aquaculture indicate positive development for India
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ith a huge coastline of over 8,118 kms, Indian continental shelf estimated to have available resources to the tune of 4.41 million tons from which about 3.40 million tons are presently exploited. The potential brackish water area suitable for shrimp farming is estimated at about 1.2 million hectares around 14 per cent is utilized for farming, producing about 5 lakh tons of shrimp and scampi which is goes to the export basket.
at primary production centres often results in poor quality of the products.
Total fishery production in India during 201214 was 9.58 million tons from both marine and inland, in which inland sector contributed 6.14 million tons and marine sector 3.44 million tons. The seafood industry in India has become one of the leading suppliers of quality seafood to all the major markets of the world. The country has world class seafood processing plants that follow quality control regimes complaint to stringent international regulatory requirements. It is expected that this industry grows by 15 per cent growth this fiscal because of shortage in the global marine products market. Ecuador earthquake and diseases in fisheries farm in South East Asian countries may prove to be a boon for the Indian seafood industry.
Average price of seafood India per unit is USD 4.70 and average value per shipment is 550.
The positive aspects of the seafood industry India stands second as a major producer of aquaculture in the world, producing 7 per cent of the world output. The country’s aquaculture sector witnessed boom with increased production of P. monodon and L. vannamei. Indian Government through MPEDA has provided various subsidies in the form of financial assistance for setting cold stores, purchase refrigerated trucks, seafood units’ upgradation, purchase antibiotic testing kit, insurance coverage for worker etc. Exporters receive assistance for promoting exports, hygiene and sanitation, research and development, and acquisition of machinery. India has increased the quality of storages, road and transportation and availability of public cold stores, shipment connectivity and the Shipping Port infrastructure facilities which are mostly oriented towards the export market.
Sandeep Dongre Sanchita Marine Products Pvt. Ltd, Director We are into frozen seafood materials business as our products get a government approved number then it is further exported outside India. Sanchita Marine has installed a fully integrated IQF machine with balancing and cooking facilities for value added products. Right now, there are no development plans as such for the company, because the focus is on domestic market. The challenges/drawbacks Due to stringent quality standards set by international trade, the establishment cost of a processing plant has increased considerably over the years. The major threat to marine ecosystem remains illegal, unreported, and unregulated (IUU) fishing. Price uncertainties in importing countries lead to additional cost of storage and material getting delayed in shipment. Another issue is labour, which is becoming increasingly expensive, at times unavailable as the rising wage cost reflects improvement in income opportunities. Quality and hygiene also need to be looked at, firstly it is greatly recommended that fishermen are provided clean ice. Many port ice-factories are very unhygienic. Absence of quality control
Analysis of Exports of seafood India India exported seafood India worth USD 163,833 with total quantity of 34,840. Germany is the largest buyer of seafood India accounting for exports worth USD 89,930 followed by Netherlands and Switzerland which imported seafood India worth USD 73,495 and USD 408 respectively.
Export Performance of Marine Products 2015-16 During the financial year 2015-16, India has exported 9,45,892 MT of seafood worth US$ 4.7 Billion (Rs. 30,420.83 crores). The average unit value realization of Frozen shrimp has come down to US$ 8.28 per kg. in 2015-16 as against US$ 10.38 in 2014-15. (Shrimp constitute 66 per cent value of total exports). The depreciation of Euro, weaker economic condition in China, devaluation of Yen contributed to the decline in exports. Frozen shrimp continued to be the major item of export in terms of quantity and value, accounting for a share of 39.53 per cent in quantity and 66.06 per cent of the total USD earnings. USA continued to be the major importer of Indian seafood with a share of 28.46% in terms of USD followed by South East Asia (24.59%), EU (20.71%) & Japan (8.61%). Vizag, Kochi, JNP and Calcutta are major ports handled the marine cargo. Total Value & Volume of Exports in India Total Value - $181,928 Total Quantity - 38,840 Average price per unit - $4.68 Average value per shipment - $602 Top Suppliers Netherlands -$91,590 Germany - $89,930 Switzerland - $408 India is the second largest aquaculture producer in the world, largest exporter of shrimp to USA, the 2nd largest exporter of shrimps to Europe and the 4th largest exporter of shrimps to Japan. In 2015-16, aquaculture production in the country dropped below 4 lakh tonnes as the prices fell. Former President of Society of Aquaculture Professionals, S Muthukaruppan said “This time, judging from the first harvest, aquaculture shrimp production should cross 4 lakh tonnes. Farms in some regions like Gujarat, West Bengal, Odisha and West Godavari are doing well,” adding that the farms have also been free from diseases. The improvement in shrimp prices in world market has encouraged farms, mostly concentrated in Andhra Pradesh to increase harvest. Seafood exports touch new horizons For the first time in the history of marine product exports during the financial year 2014-15, the export earnings crossed USD 5.5 billion. This is also first time export has crossed all previous records in quantity, Rupee value and US$ terms. Increased production of Vannamei shrimp, increased productivity of Black Tiger shrimp and better price realization of major items like Cuttlefish, Shrimp and Squid helped India to achieve significant export turnover during 201415. Some of the leading seafood industry players shared their views on current scenario and the drawbacks/challenges of seafood industry in India. Indian Aquaculture is highly promising and has grown over six and half fold in the last two decades with freshwater aquaculture contributing over 95 per cent of the total aquaculture production.
Director of Sanchita Marine Products Pvt Ltd, Sandeep Dongre said the raw materials in the seafood industry is decreasing every year and aquaculture is rising and visibly seen in places like Gujarat, Andhra Pradesh, Maharashtra. The domestic market has seen rise in the growth rate whereas seafoods’ exports market will see substantial rise in time to come. Export Manager of Salet Seafoods Pvt Ltd & Sagar Samrat Seafoods, Ninad Joshi said seafood is a vast industry that has many aspects, and just to add to your knowledge Gujarat sea coastline is huge as it exports more than 8000 containers of seafood to various parts of the world, to 20-25 countries. In 2016, the fisheries have been good despite small species production however seafood exports are earning good money. China and Vietnam who are dependent on such harvest will face some issues because Chinese
Satish Pandit – Amarsagar Seafoods Pvt. Ltd – Director We have four seafood manufacturing factories in India, two factories situated at Porbandar, one in Varaval, and another in Mumbai. We are into frozen seafood products processing; one of the popular value-added product is ‘surimi’ (Japanese name) which is minced, leached, refined, fish meat paste. We export this product mainly to Japan, and our products are exported to many countries all over the world. Yes, we do have some development plans. Surimi is basically the raw material to produce various products like fried, and so on out of it. We plan to sell all these products in India, because right now we sell ‘surimi’ as a raw material to other countries. Amarsagar intends to sell all the finished products in India. In few years’ time, a plant could be set up with an initial investment of Rs. 20 cr. currency is weaker than dollar. Director of Amarsagar Seafoods Pvt. Ltd, Satish Pandit said the difficulties that we face today is number of plants are increasing and there is tough competition for raw materials as compared to earlier times. The price of raw materials is falling considerably. Accordingly, there are not enough resources for it like raw materials size is decreasing, in some areas raw materials landing is not consistent like before. Earlier, we could predict that in specific season we will get these fishes, and even we would sign a contract with the buyers stating to supply certain quantity of fishes. But now this is not predictable as sometimes fishes are available in big quantity, and at times small quantity. The technological scenario in the seafood industry has room for improvement. A lot more can be done to improve the efficiency of this trade. Dongre further states that aquaculture is the segment that makes use of latest technology. Whereas Joshi said that it all depends on the customer requirement and the places it is being exported. Machines like IQF, shrimp grading machine, hardening machine squid tube machines and several other machines
Beverages & Food Processing Times
are exported to Europe and USA. Pandit felt that though India is taking big steps in the field of technology, but takes a beating when it comes to skilled labor. He said, many new value-added products are coming up, the problem lies in manpower. “We do not have skilled labor, there is lack in proficiency and workers are uneducated task to perform the task. Some plants are coming up with new technology that brings in more valueadded products.” Seafood industry is largely human-touch sector as there is no such specific required machine for it. We are dependent on the marine as raw materials are procured from the sea, Joshi added. There are few drawbacks that the seafood industry faces. The government should consider the issues that they face and provide permanent measures for the same. For Dongre, the main problem is purchase, the production of seafood materials is being hoarded sometimes, which affects those in this industry. Joshi feels that the obstacle today is raw materials, like what kind of materials received every day is uncertain. Those in exports segment are facing the problem of currency, because all world currency is down as against dollar. Lastly, Pandit also commented on the problems this industry faces, “the government has not imposed any control on the size of the raw material catch, like there is no specific net size mandated by the them. In other countries, they have the quota system; like in this season they must catch this much of quantity and each fishing boat receives allocation. Here in India, we have very small fishing boats and the fishing sector in India is not organised. Hence there is no control of the government like fishermen are using small net size and catching even juvenile fishes in it. Unpredictability is another issue that the seafood industry faces, earlier this was not the scenario.”
Ninad Joshi - Salet Seafoods Pvt Ltd & Sagar Samrat Seafoods, Export Manager Salet Seafoods entered the market in the year 1953, and today it has grown diversely carrying out several activities like fishing, fish processing and mass exports. Salet Seafoods greatly follows the principle of quality. Variety of seafood products that can be availed from them. The entire operation right from fish collection to packing and marketing is carried out in highly sophisticated manner with utmost hygiene. Three years ago, a plant had been set up with increased production capacity of about 75,000 hence there are no development plans as of now. Regarding investments, if there are good prospects then they will consider the investment.
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Vol. 9, Issue 10 - March - 2017
SEA FOOD INDUSTRY
MPEDA is tapping opportunities in new and potential markets for further growth
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hairman of Marine Products Export Development Authority (MPEDA) – Dr. A. Jayathilak
Q. What is the current scenario of Indian seafood exports? The export scenario in 2016-17 was very encouraging. We have seen an increase of almost 13 per cent in the export value up to November 2016 compared to previous year same period. In dollar terms the increase is nearly 9 per cent. However, the volume growth is not very significant indicating a higher unit value realization. The unit value realized in the current year is US$ 5.42 against US$ 4.99 of last year. Export of high valued shrimp and the value-added products contributed to the increase in unit value. The export details are given below. Q. In the last two years (2014-15 and 201516) India has seen unprecedented growth in exports. What are the reasons behind this growth? During 2014-15, the seafood export has reached an all-time high record of 1.05 million tons valued US$ 5.51 billion. (Rs. 33,442 Cr) The increase was nearly 7 per cent in terms of quantity and 10 per cent in terms of value over previous year. [Export during 2013-14 was 0.98 million tons valued US$ 5.01 Billion (Rs. 30,213 Cr.)]. Frozen shrimp is the major item in the export basket with a share of 34 per cent in quantity and 67 per cent in value and the increase in the frozen shrimp mainly contributed to this achievement. Export of Frozen shrimp has increased from 301435 tons valued US$ 3.21 billion (Rs. 19,368 Cr.) in 2013-14 to 357505 tons valued US$ 3.71 billion (Rs. 22,468 Cr.) in 2014-15. There was a short supply in Vannamei shrimp production from major suppliers like Thailand, Vietnam, and China due to the disease known ad EMS (Early Mortality Syndrome). The better management practices and sufficient precautionary measures adopted in India prevented the occurrence of the disease in India. Also, we could supply adequate quantity of shrimp to the international markets. In 2015-16, the situation in these countries improved. The revival of the aquaculture production (especially Shrimp) in Thailand and Vietnam has resulted in a better supply situation in
the international market. This has eased the price situation of shrimp in the world over including India. Thus our average unit value realization of Frozen shrimp has come down to US$ 8.28 per kg. in 2015-16 as against US$ 10.38 in 2014-15. (Shrimp constitute 66% value of total exports). The depreciation of euro, weaker economic condition in China, devaluation yen etc contributed to the decline in exports. Other factors contributed were the decline in capture fishery. As per the statistics available, wild caught shrimp landing has declined by 10.5% in 2015 (348296 tons) compared to 2014 (389007 tons). During the financial year 2015-16, India has exported only 945892 MT of Seafood worth US$ 4.7 Billion. Q. Will we be able to continue the same trend of growth. The trend during 2016-17 upto November is positive in terms of quantity, value, and Unit value realisation. Increased production of L. Vannamei and Black Tiger Shrimp, diversification of Aquaculture species particularly of Mangrove Crab and Tilapia, quality control measures and increase in infrastructure facilities for production of value
added products are expected to achieve this target. Q. What are the promotional schemes by MPEDA for the seafood industry? MPEDA is operating promotional schemes in the form of financial assistance in various sectors such as Aquaculture, Capture Fisheries, Processing Infrastructure and Value Addition, Market
Promotion, and Quality Control. Under the schemes financial assistance is given to upgradation of fishing harbours, development and upgradation of aquaculture farms and hatcheries, cage culture, setting up of ornamental fish breeding units, infrastructure upgradation in fishing vessels, infrastructure development on seafood value addition, setting up of live /chilled, live, and dried fish handling units and establishment of cold chain, in house testing facilities etc. Q. What are the challenges faced by Indian seafood processors? Reduction in marine fish landings over recent years is a big challenge. There is also a reluctance among exporters to fully venture into value addition, which results in the exports of more than 80 per cent seafood as raw material to other countries that do reprocessing and value addition. The price uncertainties in certain markets also result in additional cost of storage & delay in shipment. The other challenges include the increase in labour cost and lack of constantly trained workforce. Q. What are your plans to tackle these challenges? MPEDA is operating financial assistance schemes for infrastructure establishment for value addition. The trade members can very well utilize the benefits of the scheme and set up additional processing facilities to ensure better value realization through high end value addition. Under this scheme, MPEDA assists the exporters for further automation of the processing facilities, development of skilled labour pool, maintaining stringent quality standards etc.
entrepreneurs can import the raw material for reprocessing and export in value added form. Promoting aquaculture is a major factor to tackle the challenge of raw material shortage, apart from increasing the export production from our well established marine fishing industry including more species to the export basket. In addition to that, we need to strengthen the export supply chain with good storage, processing and transport infrastructure through incentives and assistance. African, CIS and Latin American countries offer good prospects for Indian Seafood. So are countries like South Korea and those in the Middle East. Tapping the opportunities in new and potential markets is planned through various promotional activities. Price drop is a global trend and Indian Shrimp farmers are resilient to adjust the production parameters to the prevailing market conditions. Reducing the stocking density of Shrimp, following BMP’s, Partial Harvest etc. are the strategies to reduce the cost of production especially the cost of feed. MPEDA is advising the farmers through extensive field level programmes to adopt the Better Management Practices (BMP’s) formulated by MPEDA to achieve competitiveness in the prevailing market conditions. Q. Geographically India has a vast coastline and strategically located between South-East Asia, Gulf, and Europe. Do you think this will benefit the Indian seafood industry? Currently South East Asia and EU are the major markets for Indian marine products and the strategic location of our country benefits Indian exporters. But we are located far away from our other markets like Japan and USA.
There is another scheme on ‘Sea freight assistance for the import of raw material’, so that the
Today the seafood exports industry is 5 billion market
P
resident of Seafood Exporters Association of India (SEAI) – Mr. V Padmanabham
Q.1) What is the current scenario of Indian seafood exports? We are mostly doing aquaculture on the East coast and sea catch on the West coast. Today the seafood exports industry is 5 billion market with a variety of seafood products. As compared to last financial year, the margin is slightly low not due to volume but because of price variation, exchange rate and international conditions. The turnover of companies has reduced to a certain extent because of the value of the product. Q.2) In the last two years (2014-15 and 2015-16) India has seen tremendous growth in exports. What are the reasons behind this growth? The main reason is aquaculture, especially in the state of Andhra Pradesh, and now in Orissa and Gujarat. Aquaculture area has increased indicating towards positive development for India. Q.3) Will we be able to continue the same trend
of growth? Yes, we are hopeful and have asked the government to increase quarantine facilities & multiplication centres. We import the good stock and what we get is the quality seed, and these quality seeds will be greatly beneficial for the farmers who will get good crops. Otherwise with the secondgeneration seeds, antibiotics are used to improve quality. The use of antibiotics must be banned since importing countries would not like to have antibiotic materials.
The main aspect is sustainability as we are talking about a million-dollars increase in the industry, but this is subject to sustainability. Hence our maximum focus is on sustainability by taking necessary precautions as per the requirements by the importers, whether for traceability, non-usage of antibiotics and other chemicals.
quarantine, and after thorough inspection. These good stocks are released to the hatcheries which in turn will produce good quality seeds. Then hatcheries supply it to the farmers, the farmer in turn will supply it to the processor, and in the end the processor exports it. That’s the chain, and hence there should be a linkage, traceability, and infrastructure. As an association, we are trying our best to get the finest stock in the world which will benefit farmers who produce good quality prawns for export. If these things are supported, then definitely there will be continuous growth and the industry will be sustainable.
Q.4) What are the challenges faced by Indian seafood
6) Geographically India has a vast coastline and strategically located between South-East Asia, Gulf, and Europe. Do you think this will benefit the Indian seafood industry? Yes definitely, India is at the most advantageous position today as China and Vietnam have problems of their own. The East coast of India and especially in Andhra Pradesh can produce the biggest size and maximum quantity because of climatic conditions and the entrepreneurship of the local farmers. All along the coastline, there is enough water resources. India has a long coastline
processors? As I mentioned earlier, the main challenge is to provide farmers with quality seeds and all ingredients free from antibiotics, then sustainability is an issue. Then people start using antibiotics for low quality seeds which is a major challenge today. Q.5) What are your plans to tackle these challenges? We must import quality good stock and sent it to
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OIL NEWS
Staple cooking medium oils outshines dairy as India’s largest packaged food item
einforced by increasing consumer awareness that now prioritize health and hygiene over expenses on the staple cooking medium oils outshined dairy as India’s largest packaged food item. According to Euromonitor International, sales of cooking oils increased 22 per cent at Rs. 1.05
lakh crore, outpacing dairy that was below Rs.1 lakh crore during 2016. Domestic companies harnessed their last-mile distribution network beyond metropolitan centers to dominate sales: The top five companies in the overall packaged foods industry worth Rs. 3.5 lakh crore were homegrown. Angshu Mallick, chief operating officer at Adani
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Wilmar that sells the Fortune brand of cooking oils, said rural India was at the vanguard of sales growth. "People are becoming conscious of what they eat. The per capita consumption of edible oil too has increased from 8 kg per person annually to 16 kg in the past one decade," he added.
Sales are increasing by more than 25 per cent in rural India, where increasing farmgate prices of cereals and vegetables are helping broaden the consumer base. The introduction of smaller and more affordable pack sizes is also bringing more packaged food categories within the reach of price-sensitive consumers in semi-urban and rural India. By contrast, companies are stressing health and wellness through innovative marketing in urban India, helping shift value to the premium end of the spectrum. Ruchi Soya, the third largest company within the foods segment, launched the "Kill lethargy with Sunrich Sunflower Oil" campaign as part of the strategy to focus on health and well-being: Similarly, Adani Wilmar sought to attack diabetes, a condition that affects millions of Indians, with the Fortune VIVO diabetes care oil. Siraj Chaudhry, Chairman, Cargill India said the efforts of the industry and the government to increase consumer awareness on food adulteration and safety have helped spur sales. Consumers believe it is convenient to buy packaged oil. The cost difference between the two is also not much; however, experts attribute higher sales in part to a wider category: Dairy is consumed largely by end-users, but cooking
oils have consumers within the processed food industry. "The growth in edible oils is driven more by out of home consumption by fast growing snacking companies and quick service restaurants. Also, oil comes with a higher price tag compared to dairy products on a similar pack size," said Devendra Chawla, Group President at Future Group, adding that dairy will be the next big bet within foods as the economy matures. Changing lifestyles are leading to strong growth in areas such as savoury snacks, and manufacturers remain sensitive to the peculiarities of the Indian palate. By contrast, dairy has not innovated much and the industry is largely controlled by state-led cooperative producers that are beset with challenges of prompt logistics and preserving products that have short shelf lives. Amul and Mother Dairy, the state co-operatives that lead the dairy business, remained the two largest food companies and accounts for about 10% of the entire packaged food market. Dairy was the slowest-expanding category with 4 per cent volume growth last calendar year due to its relative maturity in the food sector. India is the ninth-largest market for dairy products and the largest for milk, globally. "Dairy is still driven largely by loose or unbranded products even at urban centres. Hence, as a product category, it is way bigger than edible oil that is hardly being sold loose now," said RS Sodhi, managing director at Gujarat Co-operative Milk Marketing Federation that sells Amul.
Ruchi Soya partners with Patanjali for edible oils
Mr. Raju Jituri Office in India :107, Rajshree Industrial Estate II, Ghodbunder Road, Chitalsar, Manpada, Thane (W) MAHARASHTRA 400607. Tel: 022-25896580 Mobile : 091-9820141567, 9920225757 Email: shrutiicemac@yahoo.co.in Website: www.shruti.indus.com
R
uchi Soya Industries said it has signed an agreement with Patanjali Ayurved for physical refining and packaging of edible oils. Under the agreement, Ruchi Soya will process and pack the crude oil provided by Patanjali Ayurved as per their specifications, the company said. Ruchi
Soya
Industries
Managing
Director Dinesh Shahra said, “We have been looking at opportunities to explore optimal use of capacities for crushing, refining and packaging edible oils with various parties.“The agreement with Patanjali Ayurved is a win-win situation. We will be able to utilise idle capacities, and work with Patanjali to enable them to supply quality refined oils to the Indian market,”. Ruchi Soya currently has the largest edible oil refining capacity in India of 3.3 million metric tonnes per annum across 13 facilities. Company’s COO Satendra Aggarwal said, “The agreements would cover processing and packing soya, sunflower and mustard oils at our plant in Baran, Rajasthan.” “In near future, the processing and packing will be extended to other locations and will include more varieties of edible oils as well. The tie-up will help us to improve capacity utilisation and enhance productivity, efficiency and profitability,” he said. Ruchi Soya is the country’s leading agriculture and Food FMCG company with a turnover of USD 4 billion. Its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
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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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BAKERY NEWS
L'Opera plans to add 50 bakery outlets in India by 2021 Pratik Pota as CEO; to succeed Ajay Kaul for Jubilant FoodWorks
D
J
ubilant FoodWorks (JFL), exclusive franchisee of quick service restaurants Domino’s and Dunkin Donuts, has named former PepsiCo official Pratik Pota as its chief executive officer designate. Pota will succeed outgoing chief executive Ajay Kaul, with effect from April 1, 2017.
elhi-based French patisserie and bakery chain L'Opera wants to expand its footprints in the Indian markets. They plan to add 50 outlets across India by 2021 for which it will raise around Rs 40 crore. L'Opera currently has 16 outlets in Delhi, Gurugram and Dehradun. L'Opera Executive Chairman Kazem Samandari, "We plan to open 50 outlets across the country by 2021. The cities that we would be focusing on are Chennai, Mumbai, Bengaluru, Pune, Delhi and
NCR." Out of these, up to seven will be added in Delhi and NCR.
roughly Rs 40 crore that will take us to our next development phase."
The company will also open two more regional production centres in Mumbai and Bengaluru. The company will also have satellite production centres in Pune and Chennai, Samandari said. In response to how the company plans to finance the expansion, he said "We are right now in the process of completing a round of funding of
The company has appointed Langham Capital as its financial adviser, he said, "We have shortlisted two potential lead investors, who are private equity funds." L'Opera started operations in 2010 and opened its first flagship outlet in Delhi in March 2011.
Kaul had announced his decision to quit the company last year in September. The country’s largest quick service chain, JFL, similar to peers in the quick service restaurant space, has been dealing with slowing sales for close to six quarters now, with consumers cutting back on discretionary spends and eating out. A former IIM Kolkata and BITS Pilani official, Pota was with PepsiCo as chief operating officer (foods & beverages), before which he worked for Bharti Airtel and Hindustan Unilever.
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Food regulator asks corporates to spread message of nutrition & food safety
F
SSAI asked corporates to actively get involved in the efforts to spread the message of food safety and nutrition in the country. The Food Safety and Standards Authority of India (FSSAI) organised a workshop on social mobilisation for ‘Safe and Nutritious Food: A way of life’. Broad theme was ‘Corporates for Safe and Nutritious Food’ which focused on building an alliance of corporates and design specific interventions that companies can take up.
NEWS
O
Premium snack brand Cornitos aims to double revenue in two years
wner of premium snack brand Cornitos,GreenDot Health Foods Ltd is plans to double their revenue to Rs100 crore in the next two years, riding on the popularity of its flagship product Nacho Crisps (tortilla). Founder and director at GreenDot Health Foods Ltd,Vikram Agarwal said
2015-16 and is hoping to close 2016-17 at Rs50 crore. GreenDot Health Foods sells premium roasted nuts and recently entered the ready-to-eat segment with the launch of taco shells and refried beans. Both categories contribute 5 per cent to the overall revenue, while Nacho Crisps remains the money spinner for the company.
“The next phase of growth will come from tier II and tier III cities across the country. Big demand is coming from these areas.” To achieve this, the company is looking towards smaller towns and cities for growth and further expansion. adding that these areas will account for 50 per cent of the company’s overall revenue by the end of 2017 from the current 20 per cent.
Agarwal said “We are seeing a good growth in nachos but ready-to-eat segment remains a challenge. Mexican cuisine is not that famous in India. We are constantly organizing demonstrations across the country to popularise the cuisine and the products.”
The company recorded Rs40 crore in revenue in
Currently, GreenDot Health Foods sells nachos in 10 flavours and will add two more in 2017, through 30,000 outlets. The company also intends to add
10,000 new retailers to its distribution network and has also started offering a smaller 30-gram pack of nachos for Rs20 in small towns. “We are selling smaller packs instead of the regular Rs35 (per 60 grams) ones in tier III towns which are being well received by the consumers,” he added. GreenDot also sells products through e-retailers like Grofers, Amazon and BigBasket, and exports nachos to 12 countries including China, the US and Singapore, which contribute 20 per cent to the company’s revenue. In the year 2009, GreenDot Health Foods was set up in Faridabad as a start-up to ‘introduce Indians to a new Mexican snack and change the snacking habits across the country’.
South Asia’s One & Only Ice Cream Industry Event
Over 100 participants from the corporate sector, mainly food businesses came out in full support of FSSAI to provide safe and nutritious food to the citizens, FSSAI said in a statement. Speaking at the event, FSSAI Chairperson Ashish Bahuguna urged corporates to “get actively involved in the efforts to spread the message of food safety and nutrition”. This is just the beginning of long-term engagement between FSSAI and food businesses for social mobilisation. FSSAI CEO Pawan Agarwal also laid emphasis on various initiatives by the regulator for spreading the message of food safety and nutrition at different places like home, schools, work places and eating places etc. Among corporates that included both Indian food companies like Dabur and Britannia to multinationals such as Nestle, Mondelez, Pepsi, there was a consensus that investing in food safety and nutrition is smart, right and sustainable thing to do. Dr Lawrence Haddad, Executive Director, Global Alliance for Improvement of Nutrition (GAIN) pointed out that it is in the interest of businesses to invest in food safety and nutrition.
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FSSAI also launched its new website, a water portal and food safety connect for an integrated complaint redressal system.
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NEWS
Government wants to make India ‘Food Factory of the world’ 1) How has the food processing industry grown in the past decade? In the past decade, food industry has grown exponentially mainly in packaged food products. 2) Tell me about your company's growth from its inception. MB group is a diversified group. Two of the
group companies are engaged in manufacturing food products - M.B. Chemicals (Since 1991) manufactures Candy Sugar (Mishri), Sugar Free, Sachets, Salt & paper sachets, M.B. Sugars & Pharmaceuticals Ltd. (since 1997) manufactures variety of specialty sugars like Sugar Cubes, Sugar Sachets, Castor Sugar, Demerara Sugar, Light
Brown Sugar, Sugar Paste, Rainbow Sugar etc. We initially started with small quantity & today we have grown multi-folds and are the second largest player in our industry in India. We are also exporting our products to Nepal, Bhutan, South Africa, Egypt, Dubai etc. 3) What growth percentage do you expect by the end of this fiscal year (20162017) at your end? For this fiscal year (2016-2017) we are eyeing on a growth of 40 per cent. 4) Do your think the government has taken enough measures and initiatives for the food processing industry? What more can be done for this industry? As India is an agrarian economy, Government wants to make India ‘Food Factory of the world’. Thus, they have provided lot of incentives to set up green field projects through their schemes of Make in India, Food parks, SEZ unit etc. There are schemes from APEDA to promote exports etc. 5) Per capita consumption of food industry is increasing every year; how do you view this industry in the next 5 years? Due to growing population consumption is increasing day by day. Also, due to higher income, people
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7) FSSAI has laid down many stringent food safety norms for the Indian food processors. Do you think our products have met global standards now? The new FSSAI norms contain stringent benchmarks for various categories. The purpose is to review the existing standards & to upgrade to newer & higher standards. Though human resources of India are valued highly abroad, the products & services of India do not have the same respect & trust. Thus, we need to incorporate international norms & quality global standards in businesses, so that Indian products can be at par with that of other countries.
High credit should help farmers adopt scientific ways
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want best quality products & increased choices. Thus, we see a strong growth prospects for future. 6) Are we prepared to cater to the growing demand in food processing industry in terms of good quality Managing Director, packaging and processing Samayak Lodha etc.? Lot of big industry players like ITC & multinational companies have entered in food industry in past decade. They have completely changed the face of food processing plants & packaging. They have brought the latest technology available in the world to India. They are providing best, consumer friendly packaging.
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ndustry players from the agricultural sector have hailed the Union Budget's provision of higher credit for farmers as that could now inspire farmers to adopt more scientific ways of farming. The government in its Budget announced a Rs 100,000 crore hike in the credit target for the next financial year to Rs 10 lakh crore as part of their effort to double farm incomes in the next five years. Arun Jaitley proposed to integrate fruits and vegetables growing farmers with agro-processing units for better price realisation and reduction of post-harvest losses. Thus, a model law on contract farming would also be prepared and circulated among the states for adoption. Managing Director of Nagpur-based Ankur Seeds Private Limited M G Shembekar, said “More liquidity in farmers’ hands will increase their spending at the various levels. It will encourage them to adopt scientific farming and use of drip irrigation and technology would also go up.” PiruzKhambatta, Chairman and Managing Director of Rasna Private Limited said that the move would encourage corporate involvement in the farming sector. "This will result into better returns for farmers. However, it depends on how well prepared the government is to implement the model law on contract farming.” As per Atul Chaturvedi, chief executive officer of Adani Wilmar and president of Solvent Extractors’ Association of India said, “the government wants to connect large numbers of mandis with the e-NAM which is also a welcomed step as better price realisation will increase the farmers' income," adding that the results would take some time to show.
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ACE Technologies Manufactures Industrial Purpose Conveyor Systems
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CE Technologies manufactures Industrial purpose conveyor systems. ACE breaks the paradigm associated with custom conveyors, conveyors made to order, and conveyors loaded with special features and options.
Salient Features: We offer a full range of Rubber, Plastic, Slat, Wire Mesh, and Chain Belt Conveyors for unit handling and bulk handling in both dry and wet environments Machines. They are available for moving material horizontally, and for elevating material. Applicable for all kind of industries like food, Beverage, Pharma, Automobile, warehouse, Logistic, Poultry, Dairy etc Types of Conveyors: Incline conveyors Flat Belt conveyors Assembly line conveyors Slat Belt Conveyors for bottling line In-process transfer conveyors Z shaped Bucket Elevators Roller Conveyor (Power & Gravity) Spiral Conveyors & Over-head Conveyors Screw Conveyors Aero-Mechanical conveyors Vibratory Feeders Take-away conveyors for packing a wide range of Powder/Granules Food products
NEWS
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Cargill Foods introduces technology for anti-counterfeiting
eading edible oil firm Cargill Foods India has introduced anti-counterfeit technology in its cooking oil brand Gemini at a cost of about Rs 2 crore to fight against fake products, besides protecting brand image and revenues. Cargill Foods India, part of the US food major Cargill, will launch this technology in other brands from next month, such as Nature Fresh, Sweekar, Rath, Sunflower and Leonardo, as the company said that it witnesses 10-20 per cent business loss in smaller cities and rural markets due to fake products. The Chief Marketing officer (CMO) Neelima Burra of Cargill said, "We have introduced new-age anticounterfeiting technology in Gemini, which is our popular brand in South and West India. From next month, this will be in our all other brand and will soon bring new range of 'Leonardo' olive oil.’’
by FICCI-KPMG suggests that out of the total counterfeit market, 65 per cent is from this sector. Edible oil industry is one of the most unorganised sectors in terms of distribution in India, hence, it holds a larger risk of duplicity," Burra said. While consumers end up paying excessively for low quality products that could possibly have
Burra said this anti-counterfeiting technology has a unique feature with a two-way process to check the authenticity. The estimated cost would be about Rs 2 crore. Anti-counterfeiting technology includes a 3D Hologram of Cargill Foods India which signifies the authenticity of the product. On looking at this hologram using the phone's torch light, one can see '1865' written - the year of foundation of Cargill Foods India's operations. And we can now identify where the counterfeit has been detected and take immediate action," Burra said. Besides, the customer can download an app called 'Mojo Tags' to scan batch code of the product and receive the reassurance of the genuineness of the product. "According to a study by KPMG-FICCI, about 80 per cent of the consumers are victims of deceptive counterfeiting, i.e. they buy fake goods in the belief of buying genuine ones, the company said. "Counterfeiting in India is rising at an alarming rate, especially in the FMCG sector. A report
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health and safety risks, producers risk damage to brand image, she said. Burra said the company would launch awareness campaign for consumers as well as its wholesalers and retailers, while continuing to take necessary legal action against counterfeiting and getting the cases registered.
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Vol. 9, Issue 10 - March - 2017
FOOD PROCESSING NEWS
Food processing sector in Chandigarh needs comprehensive support system
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handigarh food processing industry is coping with the demonetisation effects and expects a comprehensive support system for the sector including marketing support, incentives, to set up a common facilitation centre for quality control and product development and the rest from the Union Budget 2017. Industry experts said the region, including Punjab, Haryana, HP, and J&K, has potential to emerge as a hub for value-added products due to availability of raw materials. The government should lay emphasis on boosting the sector in turn helping to develop the agriculture sector.' MD, NASA Agro, Fazilka Sanjeev Nagpal
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said “The industry needs a comprehensive support system to compete globally. The production and processing of the produce is not an issue, but the need of the hour is marketing support and strengthening quality standards. The government must set up a common facilitation centre and give impetus to forward linkages. Seeking a reduction in interest rates to assist MSMEs, food processors lamented the most of the companies failed to compete globally due to high rates. They also demanded an increase in subsidy on plant and machinery used in the food processing units. MD, Patiala Horticultures (P) Ltd, KVS Sidhu said, “The government should bring down the excise duty on food products which is hovering around 6-12.5 per cent. Food production should not come under the high tax bracket under the GST regime. The government should make provisions for easy credit at lower rate of interest and should be accessible to MSMEs.”
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Vol. 9, Issue 10 - March - 2017
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Vol. 9, Issue 10 - March - 2017
Our philosophy is simple; our customers to be successful.
Pasteurizer:
Pasteurization is the heat treatment of a product to kill pathogenic bacteria and reduce enzymatic activity. The purpose is to make the product safe for consumption and to lengthen product shelf life.�
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Aseptic Thermoprosys Pvt. Ltd. 54/11, D-2 Block, MIDC, Chinchwad, Pune - 411 019, INDIA Ph : +91 20 - 27440046, 65605550 Cell : +91 9422630011 E-Mail : info@thermoprosys.com www.thermoprosys.com EDITOR Firoz H. Naqvi
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