Oil & Food Journal June 2016 by Advance Info Media & Events

Vol 11 Issue 08 June 2016

Food Agrprocessing

100/-

Indian’s 1st News Portal for Agro, Food Processing & Allied Segments

www.agronfoodprocessing.com

11th

Volume

Welcome to the mango world

Brand marketing of mango drinks

Meet � ��t�t�� e��t��

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World Milk Day 2016:

A1 Versus A2 Milk - Does it Matter?

BREAD TALK

Controversy involving your morning loaf of bread

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Loose edible oil on slippery slope Baba Ramdev'sPatanjali in the dock for misleading mustard oil ad

Traditional Indian cooking oils are healthier than the modern day refined or olive oils Brand journey: Dalda evolves from Lever’s vanaspati to Bunge’s edible oil

Mother Dairy is eyeing to cross Rs 10,000 croreturnover in coming 3 years Bangalore Cooperative Milk Union (Bamul) is investing Rs 426 crore to set up a modern facility To raise milk processing capacity Amul set to invest Rs 2,500 crore

FSSAI tells state-level authorities to inspect various tea processing units

Food inflation on the way to increase due to High agri prices

Agri-Business Policy-2016: Incentives, subsidies for agro and food processing units by Gujarat Govt

Government to frame national policy on food processing

FSSAI to regulate and standardize Prasad in temples, offerings in mosques, churches and other places of worship

Cremica Food Industries aims at 35 pc growth in FY17

Palm oil planters likely to increase acreage this year Government to permit foreign companies to import certain key ingredients

Andhra targets to get Rs 5,020-cr investments and 50,000 jobs in food processing industry

CONTENTS

Liquid trade The water shortage around the world and the need for clean drinking water has opened new doors for bottled water industry

FDI in food processing may cross $1 billion in next 2 years: HarsimratKaur Badal

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Welcome to the mango world Brand marketing of mango drinks 34 The Rs 80,000 crore milk business

The power of prebiotics – Taste and explore BENEO’s dietary fibres from nature for a healthy digestive system

SEA has filed complaints with FSSAI, ASCI against Patanjali for misleading ad

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The resilient food ingredients market

Meet India’s potato king who has raised Rs 25 cr Series-B funding

BREAD TALK Controversy involving your morning loaf of bread

World Milk Day 2016: A1 Versus A2 Milk - Does it Matter?

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A EDITOR Manzar Aftab Naqvi CONSULTING EDITOR Basma Hussain GROUP EDITOR Firoz H. Naqvi firoz@advanceinfomedia.com Graphic Designer Naved H. Kazmi naved@advanceinfomedia.com Circulation Seema hayat Shaikh Seema@advenceiifomedia.com Delhi Sayyed Shahnawaz +91-8375034558 Gujarat Brijesh Mathuria +91-9924546999 Genreal Manager Gyanendra Trivedi Marketing & Circulation Office 121,1st floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist. Thane- 401107 Telefax : +91-22-28555069, Tell.: +91-22-28115068 Mob.: +91-9867992299 E-mail: info@agronfoodprocessing.com sub@advanceinfomedia.com Vol 11 Issue 08 June 2016 Annual Subcription Rs.950/By Normal Post Add Rs. 400/-For Courier Charges Add Rs. 50/- For Outstantion Charge Overseas $80 By Air Mail Email:sub@advanveinfomedia.com Single Copy Cost Rs. 100/Printed, Published & Owned By Manzar Aftab Naqvi RNI No. MAHENG /2005/15987 Postal Regd. No. THW /50/2014-2016 WPP License No. MR /TECH /WPP-308/TW /2016 Regd. Office Adcanveinfomedia & Event 103,AmarJyot Apartments, Pooja Nagar, Mira Road (E) Dist Thane-401107(Mumbai) Printed At Rolleract Press Services A-83,Ground Floor, Naraina Industrial Area Phase-1, New Delhi -110028 The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue. All disputes are not to be referred to Mumbai Jurisdiction

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EDITORIAL

repeople enjoying a healthy breakfast?Far from it, their favorite, ‘health’ brown bread that has just 22 percent whole wheat flour and color to make it brown, had dangerous and internationally banned carcinogenic chemicals. Just a few days ago, CSE showed that 84 per cent of bread and bakery samples collected from the city—New Delhi—contain residues of potassium bromate, potassium iodate or both. A panic was created in the market. The ruckus over bread comes a year after laboratory reports alleged the presence of monosodium glutamate, or MSG, in Maggi, the noodle brand owned by Nestle India. The fiasco put the spotlight on regulating permissible ingredients in packaged foods and the efficacy of lab reports in India. The market of bread did go down by about 10 per cent, but now sales are recovering after the potassium bromate crisis. But now it is recovering after the bread manufacturers voluntarily announced that they would not use potassium bromate as additive. Well the growth of the global food ingredient industry include escalating global population, changing demographics, increasing healthcare expenditures, and growing demand for packaged demand for packaged food and beverages. And seeing this ITC is nowfocusing on the wellness aspect for its packaged food business. The company's latest drive on wellness is to premiumise the packaged food business by using quality ingredients that adhere to European Union standards. Last fiscal, the business had crossed Rs 9,700 crore in sales. ITC has just launched a sugar release control variant of Aashirvaad Atta with low glycemic index which helps in managing blood sugar levels, especially among diabetics, and a digestive biscuit in the Farmlite range with no Maida and added sugar. ITC has formed a team to venture into fruits and vegetables with expertise driven from an Australian acquired agri-biotech company, Technico. Good news for the drought hit regions of Maharashtra - as Amul is keen on setting up an Rs 400 crore project in drought-hit Vidarbha region of Maharashtra where farmers are committing suicides.With Amul’s cooperation milk production will increase by four to five times and farmers will get much relief. Water scarcity is a imminent problem in India. But water is a booming market not just in India but in abroad as well. The world bottled water market is expected to reach $70bn in value by 2017 and will be stimulated by rising population, consumer spending patterns, lifestyle trends and growing levels of health consciousness, among other factors. India’s wholesale inflation rose to its highest in 19 months. Retail inflation shot up to 5.76 per in May due to rise in prices of food items, including vegetables.The sad news, tomato a vegetable that is one of the most vitalkitchenfood ingredients, is now out of a common man’sreach. Tomato prices have soared to 100 a kilo in some places due to crop damage in south India. Rains in south India and heat stress in North India have together resulted in damaged crop. Unlike potato and onion, tomatoes have a short shelf life. The absence of adequate cold storage facilities in the supply chain has aggravated the problem. Karnataka, Madhya Pradesh, Andhra Pradesh, Telangana, West Bengal and Odisha are the major tomato growing states in the country. One thing that the DIPP as done, which may help our domestic companies is the implementation of certain conditions for foreign investors in the Cabinet proposal for allowing FDI in food processing sector, while FMCG major CavinKare has launched India's 'first' ready to serve fruit milkshake. And Patanjali will soon launch more dairy products, cattle feed and natural manure as it is aiming total turnover of Rs 10,000 crore by next year. Inflation is denting the pocket of a common man, chemicals have invaded the food of the common man again…the common man suffers whereas the politician end up politicizing all the problems…..it is time that the food industry to take a step and create food security for the people because it only this industry that can be the answer to the common man predicament.

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Liquid trade

NEW DOORS

The water shortage around the world and the need for clean drinking water has opened new doors for bottled

water industry

population, consumer spending patterns, lifestyle trends and growing levels of health consciousness, among other factors.

The world bottled water market is expected to reach $70bn in value by 2017 and will be stimulated by rising

The global bottled water market is dominated by Europe and the US, which account for over 50% of the market value. Several bottled water companies are looking to enter developing markets, with immense growth potential such as Asia and Middle East.

ottled water, which started as a luxury for a small section of premium class of people, mostly travellers who came from abroad and bought it for health purposes have reached Indian households as their daily drink. Water is a booming market not just in India but in abroad as well.

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NEW DOORS Coca‐Cola’s Kinley comes a close second with market share of 15%. Other major players in the market are Tata‐ Himalayan, Dazzel, and Pepsi’s Aquafina, Parle’s agro Bailey, Foster and Dazzel etc. Sensing the opportunity that this segment holds, multinational Companies began to draw up plans to enter the market. Today the market is proving to be another battlefield for an ongoing battle between the Local Product and Multinational Company products.

China is one such market where sales of bottled water are rapidly increasing. Companies are trying to capitalize on weather changes, such as summer, and an increase in health consciousness among consumers. The bottled water industry is expected to witness greater participation from soft drink and dairy processing companies, fostered by economies offered by existing international distribution networks, and processing equipment. Bottled water will continue to fare well in the global beverage marketplace as a healthy alternative to carbonated soft drinks. Gains in the bottled water market will also come from flavoured varieties and convenient packaged formats, especially single-serve packs. The sparkling water market is dominated by Europe, which accounts for more than 75% of the world market. Danone, Nestlé, PepsiCo and The CocaCola Company are the four corporate goliaths in the industry. The major challenge for most companies is product innovation and differentiation, as ‘water is still just water’. Containers are an important part of bottled water, as they constitute nearly 50% of cost. Even look, weight and price of the product are as significant as the water itself. By the year 2017, consolidation in the industry is expected to accelerate, resulting

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in a higher degree of concentration, with the leading players strengthening their global presence. The bottled water industry in the AsiaPacific region is expected to experience a major boost, as more companies venture into the market to capitalise on the latent demand potential. Product, marketing/ promotion, packaging, distribution, price and technology would be the key factors in garnering market share in the industry. Indian packaged water scenario Water supply and contamination of water bodies have paved the path for the bottled water industry to boom in India in the last few years. A majority of households in the country either use boiled water or have water purifiers installed for accessing safe drinking water. But when traveling or eating out, bottled water has become a necessity. This need has given rise to the emergence of companies in the bottled water industry. The today’s market has grown to more than fourteen billion rupees. The organized sector branded mineral water has only Five billion rupees of market share. The rest is accounted for by the unorganized sector, which is dominated by small regional players. The market is still growing at a rate greater than eighty percent per annum. The Parle’s Bisleri is the market leader with a share of more than forty five percentage in the branded segment. The

The mineral water industry is one of the most thriving sectors in India because the water that comes out of the taps is undrinkable. Hence, people rely on either purified water, through reverse osmosis, or bottled water, also known as mineral water. The mineral water market is growing at the rate of 40 percent annually and is estimated at Rs 8,000 crores. Experts claim that the mineral water market can touch Rs 15,000 crores by the end of 2015. According to the Bureau of Indian Standards (BIS), there are approximately 1,200 bottling plants and 200 brands of packaged drinking water across the country. Out of these 200 brands, 80% of them are local. A number of popular brands in India are Bisleri, Kingfisher, and McDowell’s No.

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NEW DOORS bottles of mineral water for long journeys. We have become westernized in some aspects and slowly, the culture of ‘use and throw’ has seeped into the Indian society. So, Indians who travel quite a bit simply purchase bottled water and discard the empty containers. The only problem that arises from bottled or mineral water is the indiscriminate disposal of the bottles. Many people do not realise the environmental hazards attached to this act. So, to reduce the negative effects on the environment through indiscriminate disposal of bottles, the government can educate the public and encourage recycling. Apart from this drawback, the mineral water industry is all set to reign over India.

1, Aquafina, Bailey and Kinley. Among these brands, Bisleri has captured the majority of the market share, and it stands at 36%. Coca Cola’s Kinley is next in line with a 35% market share. This is followed by Aquafina, at 15%. Other smaller brands that do not have a major market share in the mineral water sector are Parle Agro’s Bailley, Kingfisher and McDowell’s No. 1. The domestic market is split between three groups of players. The first group comprises national brands with presence all over India and this group is worth Rs 4,000 crores. The next group comprises local brands manufactured by registered plants but restricted to certain regions in the country. This group has a turnover of Rs 2,400 crores. Lastly, the unorganised local brands have a net worth of about Rs 1,600 crores. Today, consumers purchase mineral water in 500-ml bottles, one-litre bottles, and bulk packs, with over five-litre capacity. Many people purchase 20-litre bottles for both commercial and home usage. The market for mineral water is sure to grow because we all need water to survive. A human being consumes an average of 2-3 litres of water daily, and

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with the Indian population growing at 2-3% annually, we can expect the demand for mineral water to grow as well. Today, we witness mineral water being sold in movie theatres, shopping malls, fitness centres and restaurants. There is an increase in the number of people having disposable income. So, we witness a number of people purchasing mineral water in commercial complexes instead of carrying bottled or filtered water from home. Gone are the days when people, especially those from the middle class, would carry

The bottled water industry is segmented into the following categories • Natural mineral water o Spring water o Premium natural mineral water • Packaged drinking water The packaged drinking water contributes to about 85% of the total market, while natural mineral water 15%. The natural mineral water falls under the premium segment and is mostly consumed by the urban population, due to its high cost. This segment is expected to gain popularity based on the aggressive promotion of the players exhibiting it as natural spring

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water. It is further fueled by international tourists who opt for natural mineral water along with local consumers who have experienced the same on travel abroad. Reasons for commoditizing water Demand of clean drinking water has increased over a number of years because of water scarcity due to following reasons: • Increasing population • Alarming rate of global warming • Rapid industrialization • Lack of adequate and improved management of water supply systems • Improved water management • Increased rate of water consumption • Wastage of water • Deteriorating condition of the water supply networks Packaged water is big business in all parts of the world, including India. Bottled water is sold in a variety of packages right from 200 ml pouches and glasses, to 330 ml bottles, 500 ml bottles, to one liter bottles and even 20-50 liter bulk water packs. In terms of cost, the bottled water business in India can be divided broadly into three segments, premium natural water, natural mineral water and packaged drinking water. Premium natural mineral water segment in India Nowadays whenever you go to a decent restaurant, the first thing you notice on your table is a bottle of Himalayan or Qua or some other premium bottle of natural mineral water! If you pick up the bottle and see the price tag – it’s nearly double the cost of a regular packaged drinking

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water bottle such as Bisleri and Kinley. The questions that immediately come to your mind are – Why is this water so costly? Why would anyone want to pay double the cost for water? How is this water different from the other affordable water bottles? Does anyone really buy this costly water? Surprisingly, for a country like India, premium natural mineral water currently accounts for nearly 15% of the total packaged drinking water (in value) sold in the country. In fact the natural mineral water market in India, which is currently around INR 10bn, is expected to reach around INR 32bn by FY 2018. But is that the only reason, the growth in the use bottled water is also due to rise in health awareness, increase in tourism and the easy availability of bottled water, the per capita consumption of bottled water in India is on the increase. First let’s see the difference between regular packaged drinking water and natural mineral water. Natural mineral water is drawn from an underground spring, packaged close to its source and meets the quality standards without processing. Packaged drinking water on the other hand is sourced from any source that has been treated and disinfected using a process that could involve filtration, UV / ozone treatment or reverse osmosis before it is fit for human consumption. Currently nearly 90% of the sales for natural mineral water come from

NEW DOORS institutions such as hotels, restaurants, fitness clubs and air ports. The majority of the sales happen either in metro cites or tourist destinations such as Jaipur and Goa. Key consumers include mostly the tourists and high profile customers who demand only premium products or Indians who have traveled abroad and have tried natural mineral water. Presently Bisleri’s Vedica brand and Tata’s Himalayan brand are the biggest players with nearly 60% of the market share, but many other local premium brands such as Aava and Mulshi and various imported brands such as Perrier and Evian are making their presence felt in the Indian market. Most of the current players in this segment are serving specific regions, with their focus still on urban tier 1 cities. They are still not able to reach distant smaller cities and town with large tourism potential. Only few large players such as TATA and Bisleri are currently in a position to serve Pan India due to their extensive distribution network and brand name. International premium brand in India Premium packaged drinking water is fast acquiring the proportions of a fad across India. Easily available at fine dining outlets and five-star hotels, these bottles are increasingly being paired with good food and high-end wine by those who can afford to pay for them. The premium end of the Rs 8,000 crore markets for bottled water is dominated principally by imported brands like Perrier, San Pellegrino and Evian. While Perrier is produced by Swiss multinational Nestle, San Pellegrino is imported from Italy and Evian from France. A recent report by consulting firm ValueNotes estimates that the bottled water industry will overall grow at 22 per cent CAGR until 2018 to reach Rs 16,000 crore. Premium packaged water has been in vogue for a while, but the demand has shown marked increase of late. It is now becoming more of a style statement. Most international travellers prefer premium drinking water like San

13 www.agronfoodprocessing.com Pellegrino, Perrier and Evian. There has been a clear increase in demand, especially among the health conscious, for sparkling water over carbonated drinks. Indian customers are also increasingly ordering premium drinking water at the dining table. San Pellegrino sparkling natural mineral water and Acqua Panna natural spring water can even harmonise with wine to enhance a meal. Guests in five-star hotel have always been choosy, especially about food and beverages. Some guests prefer mineral water, some ask for aerated water like Perrier and some choose natural like Himalayan and Evian. In the packaged drinking water segment, India has about 150 domestic brands. Of these, Bisleri’s Vedic and Tata’s Himalayan are the big players at the premium end with nearly 60 per cent of the market share collectively. The market has just got more competitive with Blue Pine, Prystine Food and Beverages’ artisan water brand, joining the fray and betting big on the growing potential of Indian market. The luxury water industry in India is at a nascent stage. India is among the top ten countries in terms of bottled water consumption. Today, bottled water is one of the India’s fastest growing industrial sectors. Rising health awareness, increase in disposable income, expanding organised retail, and growing urban drift in the country will drive the wheel of growth for the industry. There is a growing tendency of people wanting to spend more on the lowest denominator of everyday life, which is water. A growing number of the rich think, why they should spend on an ordinary packaged drinking water which everyone else is buying. They brand conscious class wants to spend on premium products which set them apart.

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Also, the growing culture of dining out and corporate meetings is driving the fad for premium/luxury packaged drinking water in India. What is really driving the market? The biggest drivers for this industry are the growth in foreign tourists and expatriate population, as well as the Increasing consumer awareness and brand consciousness amongst Indians. The tourism industry in India is the country’s third largest service sector, and has been showing tremendous growth due to India’s vast collection of cultural heritage sites. Due to

campaigns like “Incredible India”, the number of foreign tourists in India has increased by a CAGR of ~7.2% over the last 10 years to reach 7mn. But if you look at global numbers of foreign tourist arrivals, India stands at a poor 39th rank, where in even tiny countries such as Malaysia and Thailand have more than three times the number of tourists than what India has. This shows that India has tremendous potential when it comes to growth in the tourism sector. The current BJP government is trying to address this, by planning to improve the local infrastructure, including better roads, improved airports, better hotels and better sanitation. In fact the BJP, in its manifesto, has confirmed that tourism plays an important role in socioeconomic development through creation

NEW DOORS of jobs, infrastructure growth and foreign exchange earnings. It is planning to kick off a project to create 50 tourist circuits that are attractive yet affordable. These circuits are expected to promote tourism in the Himalayas, deserts, coastal regions, heritage and archaeological sites of India. They have also announced tourist visaon-arrival for all except eight countries in the world, as well as the start of the Electronic Travel Authorization (online visa). All these drivers are expected to help the tourism industry in India to grow by more than at least 10% YOY for the next 5 years. Apart from tourism, India has witnessed growth in its corporate sector leading to an ever increasing expatriate population who are major consumers of packaged drinking water, especially natural spring water. In fact according to a recent HSBC survey, India has become home to the second largest proportion of high-earning expatriates after China and ahead of countries such as Switzerland, Russia and Hong Kong. According to The Economic Times, the hiring of expat workers in India has amplified by about 20% since 2010 and estimates suggest that there are about 50,000 expatriates currently working in India. Most of the tourists and expats are concerned about the quality of water in India and prefer to use premium quality brands of mineral water during their stay. I think the increase in the number of tourists and expatriate in the years to come, will be the biggest driver for natural mineral water sales in India for the next few years. The road ahead According to a forecast by global research firm Canadean Global, in the coming five years consumption of beverages will rise the fastest in India and China in the coming five years,. By 2021, more than two-thirds of the rise in global beverages consumption will come from Asia, which accounts for 60% of the world population, while the share of Europe and the US

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NEW DOORS Thanks to the above factors, the Indian bottled water Industry will be booming in the coming years.The bottled water industry in India witnessed a boom in the late 1990s soon after Bisleri launched its packaged drinking water in the country. This significant growth was fuelled by a surge in advertising by the industry players that "bottled water was pure and healthy. Today, with a rise in health awareness, poor quality of tap water, and the ease of availability of bottled water, the per capita consumption of bottled water in India is on the increase. India's packaged bottled water industry is currently dominated by the top five players, including Bisleri, PepsiCo, Coca Cola, Dhariwal and Parle. These companies struggle to penetrate the small non-tier cities and towns due to poor infrastructure, thus providing an opportunity for small regional players to build a presence in regional markets.

would drop to 18% from nearly a third in 2000. Packaged water and Soft drinks will be the primary drivers of incremental volume growth, underscoring the opportunities offered by lack of quality tap water. In India, Coca-Cola, PepsiCo and Bisleri dominate the soft drinks and packaged water market, valued at around over Rs 15,000 crore. The forecast highlights the growing importance of emerging markets. Considering that the market is quite attractive and that the entry barriers are quite low, I think that the competitive rivalry is going to be tough in the premium natural mineral water segment, but the intensity wonâ&#x20AC;&#x2122;t be as much as that of the packaged drinking water segment. The key thing to remember is that this segment needs a superior quality product with excellent distribution network and brand image which makes it a little difficult for a new player to enter and survive in this market. Only the players who are able to work out an optimal distribution system along with an impactful marketing strategy will be able to last in the long

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run. Lastly, though tourism is set to fuel the growth of this segment in the short run, I think industry players cannot afford to ignore the larger segment of the market, which is the ever increasing Indian middle class that is striving for a better and healthier life style. Conclusion The future of water in India is very gloomy unless the water management practices are changed and if any drastic step towards this direction is not taken then we will face severe water problem, which will grow more due to increasing population. India can store only small quantities of rain water whereas rich countries like USA and Australia have built over 5000 cubic meters of water storage per capita. India dams can store only 200 cubic meters per person. Moreover, India can store only about 30 days of rainfall compared to 900 days in major river basins in developed countries.

Even as the industry is on a growth path, smaller local players and the unorganised sector are eating into the market of the established players, often by imitating their trademark. Maximum sale of bottled water comes from the retail sector; but this is changing with demand coming from social functions and corporate events, especially for bulk water or bottled water cups. With the aim to capture all the segments of society, players have started foraying into packaged water pouches at low price points, but this is still in the experimental stage.

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Plot no 7 Khasra no 13 Mohidinpur Manpur Indal Area Behhind Vaisno Dharam Kanta Meerut Road Ghaziabad-201003, Uttar rdesh, India Mob: 09810803491, 08285012431/32 E-mail: vermafoodsystem@gmail.com, Website www.vermagroup.com

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INGREDIENTS

The resilient food ingredients market

verall food ingredient industry is broadly classified into two segments namely; specialty food ingredient and bulk ingredient. Specialty food ingredients are sold in smaller volumes as additives which are often key determinants of an F&B productâ&#x20AC;&#x2122;s desired taste, appearance, nutritional properties and functionality. On the other hand, bulk ingredients are processed commodities

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which are sold in large volumes. Food ingredients are primarily segmented into following types: preservatives, sweeteners, color additives, flavors and spices, flavor enhancers, fat replacers, nutrients, emulsifiers, acidulants and leavening agents. Traditionally, salt was the main ingredient to be used for the preservation of meats and fish, followed by different herbs and spices

to improve the flavor of foods whilst fruits were preserved with sugar, and cucumbers were pickled with the help of vinegar. Unlike the ancient times, the contemporary consumers can opt from a wide variety of food products that are available in different flavors, colors, with high nutritional values. Food ingredients are primarily sold to the producers of prepared food, beverage, dairy, bakery,

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meat and fish and confectionery that include large food manufacturing companies as well as medium-sized companies. The key factors driving growth of the global food ingredient industry include escalating global population, changing demographics, increasing healthcare expenditures, and growing demand for

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packaged demand for packaged food and beverages. Some of the noteworthy trends and developments of this industry include ongoing merger & acquisition activities, launch of innovative and novel products, increasing acceptance of natural ingredients and rising demand from emerging economies. However, the growth of the industry is being hindered by rising intense research requirements

INGREDIENTS

and stringent regulations along with various health hazards associated with food additives. The market of Bulk ingredient As food companies cater to consumer preferences, bulk ingredient manufacturers are well positioned to satisfy demands.There are tremendous growth opportunities for bulk ingredient

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INGREDIENTS include high price volatility and unstable supplies. Price volatility results from changes to seasonal agricultural output, such as weather, diseases or pests. Whatâ&#x20AC;&#x2122;s more, because it takes time to produce ingredients, the available supply is not able to respond quickly to price changes in the short term. Other market restraints can be found in developing nations such as India, China, and Brazil in regard to the storage and transportation of ingredients, as well as the possibilities for spoilage and bacterial contamination.

producers and processors, barring obstacles such as weather, diseases, and bacterial contamination. The global bulk food ingredients market was valued at $369.51 billion in 2015, and is expected to reach $472.10 billion by 2021, a CAGR of 4.2%, according to MarketsandMarkets. The clean label trend encourages producers of bakery, confectionery, snacks and spreads, ready meals, and alcoholic and nonalcoholic beverages to use nutritious food ingredients in their products. The ready meals segment is projected to grow at the highest rate in the global bulk ingredients market due to busy lifestyles, urbanization, and increases in disposable incomes. Mintel reported that while "weak sales results in the prepared meals category are in line with a broader move away from more processed foods in favor of fresher and healthier alternatives, the categoryâ&#x20AC;&#x2122;s defining benefit of convenience remains compelling. As such, food manufacturers will find opportunities with products made from natural ingredients and those offering specific health benefits. Mintel

also

reported

that

natural

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ingredients are increasingly important to consumers of snacks, where 79% of snackers agree itâ&#x20AC;&#x2122;s important to be able to recognize the ingredients in snacks. More than half of those surveyed agreed it was important to buy snacks that contain only a few ingredients. The growth of clean label is providing significant opportunities for many bulk ingredients as consumers seek recognizable and wholesome ingredients that are sourced from nature, the consumer research of nine major international markets found a clear focus on clean labels, where "all natural" was important, as were limited or no artificial ingredients. Challenges to the quality and stability of bulk food ingredients

Bulk ingredients are on point Bulk ingredient manufacturers are and should turn attention to R&D activities to develop innovative products to cater to constantly changing consumer demands. Among the types of bulk food ingredients, the processed herbs and spices segment is projected to grow at the highest rate, attributed to consumer interest in the benefits associated with these ingredients. Food manufacturers are adding more value with a broader array of flavors that come from spices and seasonings found worldwide, not to mention increasing nutritional value. The future will also see the rise of replacements for sugar, including the use of alternative bulk sweeteners such as honey and agave syrup in place of high-intensity natural sweeteners such as stevia. Similarly, growth in the use of grains, pulses, cereals can be expected.

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Baked goods made with ingredients such as whole grains, seeds, and pulses are in high demand. Thereâ&#x20AC;&#x2122;s an increased awareness of the benefits of both fibre and protein, especially in the morning space, and these are often portable, ready-to-eat forms." In regard to natural preservatives and antioxidants, the growing application of rosemary extract in ready meals, processed meats and sauces. Celery powder is now more widely used as a natural preservative in organic meats. Bulk ingredient manufacturers can capitalize on assisting food manufacturers in meeting consumersâ&#x20AC;&#x2122; expectations with exciting flavors and forms. For example, prepared meals are a welcome solution to providing meals; however, the importance of a well-balanced, complete meal is important because nobody wants to compromise on quality or flavor. Ingredient manufacturers want to be the partners who ensure food manufacturersâ&#x20AC;&#x2122; new launches meet consumer expectations. Specialty Food Ingredients Market Increasing urbanization and growing consumer preference for processed foods is driving the specialty food ingredients market. However, the consumer is aware of the use of food additives which strip the product of its nutrients. This paved the way for consumer demanding for a safe, quality product having a long shelf life. Ingredients used for improving the shelf

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life of the processed foods are seen by consumers as using artificial ingredients and containing high Trans-fat content making the product antinutrient. Companies by introducing functional food ingredients have increased the demand as they keep the nutrient value intact. Also, organized retail sector which is a small percentage in Emerging countries is seeing inroads in the processed food sector, thus increasing its penetration and fuelling the demand for specialty food ingredients. The specialty food ingredients market is projected to reach the value of USD 91.2 Billion by 2020, at a CAGR of 5.5% from 2015. The market is driven by the increasing R&D and technological innovations, growing need for convenient foods which quickly suffice the need for the moment, nutritional and tasty foods, and vast emergence of end product applications. The functional foods have increased in demand due to the growing health concerns and consumer awareness, due to which the market for prebiotics, probiotics, minerals, and proteins have been elevating. Bakery & confectionary industry provides wide range of options and concepts which require the high amount of specialty food ingredients such as hydrocolloids, emulsifiers, flavors, cultures etc. beverages is also one of the dominant and fast growing applications for acidulants, colors, and cultures. The growing brewery industry and the occurrence of high complexity of procedures increase the demand for enzymes and starter cultures. North America and Europe are the major end users of the specialty food ingredients and are expected to see slow growth. With high organized retail penetration, U.S and UK are seen as

INGREDIENTS saturated markets for processed foods. And with huge percentage of population suffering from obesity and diabetic risks, there is demand for functional foods and hence specialty food ingredients. Europe with its weak consumer environment and high raw materials costs has led food and beverages manufacturers to look for technological advancements and identify ingredients which result in lower production costs. Brazil, India, China and Russia with their economic growth are seen as most potential markets for food ingredients. The key issue emerging economies face is in the supply chain sustainability issues, as these economies lack infrastructure, cold storage facilities affecting the imports and exports of the processed foods, and also which is a key restrain for supply of specialty food ingredients for the India food processing industry. The target audience are the food ingredients suppliers/manufacturers, food industry associations, food technologists, specialty ingredient traders, research institutions, hospitality industry, and among others. The key participants in the supply chain of the specialty food ingredients are food manufacturers/suppliers, technology providers, chemical industry, research & development laboratories, regulatory bodies, intermediary suppliers, and end users. The leading manufacturers of specialty food ingredients include Cargill (U.S.), Chr. Hansen (Denmark), DuPont (U.S.), Royal DSM (The Netherlands), and Tate & Lyle (U.K.). These companies are adopting expansions through mergers and by investing in R&D for development of new products. The major constraint this industry faces is the adherence to stringent regulatory guidelines of various countries. Another practice followed by many major players is technological advancements and innovation to introduce new product lines and meet the demands of health conscious urban consumer. One such approach is Encapsulation which delivers ingredients at the right time and at right place and helps in retaining flavor, mask bad tasting and smelling and also for fermentation and metabolite production.

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BREAD TALK Controversy involving your morning loaf of bread VOl.11 Issue 08 June 2016

n recent times, bread has become one of the most affordable and basic instant food available for consumption globally. Though bread is not a staple food in India, its consumption has increased over the years. The global bakery industry grew at an annual rate of 6.5 per cent year-on-year during 200713 and leading research associations project the global industry to grow at a CAGR of seven per cent in the next few years. The global bakery products market is forecasted to reach US$ 447

BREAD TALK

billion by 2017, driven by new consumer preferences for conveniently portioned and easy-to-consume bakery goods. A study by Assocom Institute of Bakery Technology and Management (AIBTM), states that the Indian bread industry, which consist of both organised and unorganised sectors, contribute around 45 per cent and 55 per cent of the total bread production respectively. The organised sector consists of around 1800 small scale bread manufacturers around the country,

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BREAD TALK levels of either potassium bromate or iodate. Buns and pizza crusts from popular fast-food chains such as McDonald’s, KFC and Domino’s also tested positive for both chemicals, but these were at lower levels than those found in bread. Through the 1980s and 90s, health groups and food regulatory bodies globally made recommendations to ban both potassium bromate and iodate citing sufficient evidence of their adverse effects on health.

besides 25 medium scale manufacturers and two large scale industries. The major players in the bread industry that hold about 90 per cent of the market share include Britannia and Modern Industries. Apart from them, there are a few large regional players such as Spencer’s in South India, Kitty and Bonn in Punjab and Harvest Gold and Perfect in Delhi and NCR. The study suggests that the bakery industry in India has witnessed an annual growth rate of more than 15 per cent during the past years. There is an immense growth potential in both global and domestic markets. Food safety controversy Centre for Science and Environment (CSE), a research and advocacy organisation, released a study that found potassium bromate—a possible cancercausing chemical—in 38 samples of popular bread brands in the capital city. The study also found the presence of potassium iodate, a thyroid inducer, in these samples. Both chemicals are used as additives or thickening agents in flour to soften loaves of bread. While the use of bromate is banned across some regions including the European Union, for its carcinogenic properties, the Food Safety and Standards Authority of India (FSSAI) currently allows 50 ppm (parts per million) of bromate to be used in bread.

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On the basis of existing FSSAI regulations, large packaged food companies refuted claims made by the CSE study, arguing that their products contained permissible levels of the two chemicals. Bromate, what? The CSE’s findings reported the presence of these two chemicals in the range of 1.15-22.54 ppm (parts per million) across samples, which is significantly lower than the FSSAI’s prescribed limit. The study found that common bread brands such as Perfect Bread, Harvest Gold and Britannia showed high average

For instance, potassium bromate— classified as a possible carcinogen by the International Agency for Research on Cancer (IARC)—is known to cause abdominal pain, diarrhea, nausea, and vomiting and kidney failure. Excessive intake of potassium iodate, on the other hand, could trigger thyroid disorders. European countries and the UK were the first to heed the recommendations and banned the use of potassium bromate in 1990. Australia, New Zealand, Canada and China followed suit. In India the limited presence of both chemicals is permitted by food authorities, at least in the raw material.Globally, potassium bromate was allowed to be used on the assumption that the bromate residues would not be present in the end product. This assumption failed across the world. Residues were being detected

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BREAD TALK

Markethit by Bread Cancer Report The Indian operators of Domino’s Pizza Inc. and McDonald’s Corp. dropped after a local research agency said that burger and pizza bread sold at the fastfood outlets contained cancer-causing chemicals. Jubilant Foodworks Ltd., a licensee of Domino’s, headed for a three-month low, while Westlife Development Ltd., which runs McDonald’s restaurants in western and southern India, slid 2 percent at 1:18 p.m. in Mumbai.

even after reducing the allowed limits of use and therefore, countries started banning it. Refuting claims Despite CSE’s findings, the food industry is reluctant to back down. Britannia Industries, India’s largest biscuit maker, flatly refuted claims of the study. Britannia has categorically stated that it did not use potassium bromate or iodate as an ingredient in any of its bread recipes. It claimed that all Britannia bread products are in 100% compliance with the existing food safety regulations as stipulated by FSSAI.” Burger chain McDonald’s India also dismissed CSE’s claims as “baseless”. McDonald’s India also refuted the claim that they did not use potassium bromate or potassium iodate in the flour and all other ingredients that goes into their buns. The brouhaha over bread comes a year after laboratory reports alleged the presence of monosodium glutamate, or MSG, in Maggi, the noodle brand owned by Nestle India. The fiasco put the spotlight on regulating permissible ingredients in packaged foods and the efficacy of lab reports in India. Stopping the use of potassium bromate All India Bread Manufacturers Association, which represents over 90 organised bread manufacturers, said it was “voluntarily withdrawing”

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the use of potassium bromate.While potassium bromate is said to be a Class 2B carcinogenic, potassium iodate can lead to thyroid disorders, increase the incidence of autoimmune thyroiditis and increase the risk of thyroid cancer. All India Bread Manufacturers Association president Ramesh Mago said the decision was taken since FSSAI has already said that use of potassium bromate as an additive will be stopped. Food Safety and Standards Authority of India (FSSAI) scientists had earlier said a panel had recommended withdrawing potassium bromate last year, and a notification for the same had been in draft stage since January. Bread-manufacturers are also going all out to convince consumers about the safety of their products with clear labelling and stickers proclaiming that their breads are potassium bromate-free, even though the Food Safety and Standards Authority of India (FSSAI) is yet to bring out a notification for removing it from the list of permissible food additives.

Domino’s uses products approved by the Food Safety and Standards Authority of India and doesn’t treat the flour with the chemicals, Jubilant said in a statement.

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BREAD TALK in finished products. Other studies showed that bromate was a possible carcinogen. In the 1980s and early 1990s, global scientific expert committees began reducing the allowed limit of use for bromate. They were found to be carcinogenic by the International Agency for Research on Cancer, associated with the World Health Organization in 1986.

Jubilant will be hurt in short term even though they have denied the CSE claims. Britannia Industries Ltd., India’s top biscuit maker by market value, dropped 2 percent, extending Monday’s 8.5 percent tumble. The company doesn’t use the two chemicals as ingredients in its bread recipes. CSE’s research samples included brands made by the Bangalore-based company. Retrieval According to All India Bread Manufacturers Association (AIBMA), sales of bread have recovered after the potassium bromate crisis and have again reached the level of 10-12 lakh packets per day. Sales of bread had declined by about 10 per cent after the Centre for Science and Environment (CSE) in its report alleged that bread contains carcinogenic chemicals like potassium bromate and potassium iodate. A panic was created in the market. But now it is recovering after the bread manufacturers voluntarily announced that they would not use potassium bromate as additive. Oils and food insight A typical middle-class family starts its day with the ‘healthy’ breakfast; when

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they take out bread from the toaster that is brown; hence healthy, spreads butter over it and waters it down either with milk, tea or coffee. But, are they enjoying a healthy breakfast?Far from it, their favorite, ‘health’ brown bread that has just 22 percent whole wheat flour and color to make it brown, has dangerous and internationally banned carcinogenic chemicals. Just a few days ago, its study showed that 84 per cent of bread and bakery samples collected from the city—New Delhi—contain residues of potassium bromate, potassium iodate or both. And, these chemicals, according to Indian food regulations, can be used by bread makers and bakeries as flour treatment agents. Potassium bromate helps achieve high rising and a uniform finish. They may provide an eye-catching shape to the bread, but they are highly dangerous to human health. Popularly used in many parts of the world a few decades ago, potassium bromate was allowed based on the assumption that no residue of bromate would be found in the final product. However, studies began to find detectable residues of bromate

Eventually, they recommended not using potassium bromate at all, a warning that was heeded in many countries. Potassium iodate is also banned in many countries as it can lead to higher intake of iodine, which can potentially affect thyroid function. But India continues to allow the use of these treatment agents, exposing people to the risk of consuming them through bread and bakery items. But, in India, they are permitted. While the maximum level of use of potassium bromate and/or iodate in bread is set at 50 ppm (parts per million), maximum level of use of potassium bromate in flour for bakery is set at 20 ppm and the maximum use limit of potassium bromate is set at 20 ppm in refined wheat flour, if used for bakery. Most bread samples contain these carcinogenic chemicals far exceeding this limit and 32 of 38 samples (more than 84 percent) tested was found to contain potassium bromate and/or iodate in the range of 1.15–22.54 ppm. Moreover, residues of potassium bromate and/ or iodate were found in all product categories tested by PML, including the so-called healthy, brown bread.

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MANGO DRINK

ango the king of fruit — that's old news! Mango the king of processed food and beverages across categories from tea to cocktails to candies — that's the sweet new truth about India's sweet tooth. And the sweetest thing is the market size. At Rs 8,000 crore and rapidly growing, the branded mango products market rivals that for chocolates of all kinds put together. The three most popular brands of mango drinks are engaged in a tussle to grab the number 1 slot in India. Slice, Frooti and Maaza are all struggling to dominate the mango drink market and improve their market share. Perhaps all those who grew up in the 90s have a special place in their heart reserved for Frooti – the delicious mangobased drink that dominated all others at the time. The 2000s witnessed the entry of two other mango-based cold beverages – PepsiCo’s Slice and Coca-Cola’s Maaza, which caused a dip in ‘Mango Frooti’ sales. Now, after nearly a decade of losing points against the multinational rivals, Parle’s Frooti has emerged as India’s second most popular mango drink, beating PepsiCo’s Slice to reclaim the no. 2 spot. Maaza, owned by worldwide beverage giant Coca-Cola, still has the lead.

Welcome to the mango world

Brand marketing of mango drinks VOl.11 Issue 08 June 2016

It has been reported by market analysts at Nielsen that Frooti comprises 25.6 percent of India’s Rs. 6,300 crore mango drink industry, with Slice managing a 23.4 percent mark in the quarter ended March. The 90s favourite drink has accumulated 160 basis points entirely from Slice. Parle chose actor ShahRukh Khan, its first celebrity ambassador, for endorsing the product about two years back, as he has a huge fan following among today’s kids and grownups alike. They also started packaging the beverage in PET (polyethylene terephthalate) bottles to attract a larger adult consumer base that prefer it. The major hurdle in reclaiming its share, according to Parle Agro, was the drink’s

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MANGO DRINK consumers, elaborating on the difference between a normal life and The Frooti Life. The campaign takes a bold and a contemporary look, to urge the consumers to peep inside the Frooti Life, where anything is possible. In 2015, Parle Agro ended their alliance with Creativeland Asia after nine years. Keeping the sensuous image of the brand alive with the help of their brand ambassador Katrina Kaif, the new campaign for Tropicana Slice titled ‘Harghoontrasbhara aam’ celebrates the experience of tasting real mangoes. The creative even highlights the new design of the Slice bottle which comes with a diced neck.

non-availability in returnable glass bottles (RGB) until a few years back. As of now, RGB accounts for 48 percent of the mango drink category, dominating PET, which stands at 34 percent. The makers of Frooti plan to grab the market shares even more, as a large chunk of Indian’s is slowly opting for non-carbonated cold drinks instead of regular colas. Branding mango The mango season is here and brands are all out with their marketing campaigns and strategies. Like every year, the tussle between prominent mango drink brands like Maaza, Frooti, Tropicana Slice and Paper Boat is visible across mediums. While some have changed their packaging and presentation, the others have focused on creative execution. Brand Maaza continues to use slapstick humour with Varun Dhawan, Tropicana Slice rides on Katrina’s sensuousness to promote their new packaging of the product and ShahRukh Khan in a fun and quirky manner discovers the ‘Frooti Life’ in its latest commercial. On the other hand, playing on the emotion of nostalgia and not using any celebrity, the comparatively new player in this category, Paper Boat has managed to capture audiences with its unique campaign. After the success of the ‘HarMausam Aam’ campaign, this year, Maaza- the

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brand from Coca Cola India, has released their new ad titled ‘Laalach for Aam? Maaza hainaam.’ Using the trade mark tonality of the brand-slapstick humour, the new ad shows Varun Dhawan in double-role. The ad conceptualized by Leo Burnett highlights the emotion of greed when it comes to having mangoes. The new ad campaign for Frooti is an extension of the change in visual identity given to the brand last year with bold packaging, design and recipe. The new campaign ‘Frooti Life’ conceptualized by Sagmeister&Walsh, brings the concept of this surreal world directly to the

Paper Boat talks about nostalgia and innocence in almost all their commercials and that makes them stand out from the rest of the players. In these ads as well, it highlights innocence with the aim to bring alive the child in everyone using its two products- Aam Ras and Aam Panna. Marketing strategy In order to boost on-the-go consumption for Maaza this year, the brand has introduced 125 ml tetra pack in Delhi, Kolkata and Uttar Pradesh priced at Rs 10. At the Make in India summit this year, Coca Cola shared the company’s plans to make Maaza, the world’s first billiondollar drink brand coming out of India. To mark 40 years of the brand in India,

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MANGO DRINK I am a mango loving person and I will be biased towards mango drinks, I think Maaza, which comes very close to the taste of real mangoes has a good perception associated with it. Mostly, all their ads have tried to highlight this speciality. I love what Paper Boat is doing, their communication has a Godly innocence and it instantly connects with people across age groups.

the company will invest in enhancing brand love, launching new, affordable and value for money juice packs, expanding distribution and augmenting manufacturing capacity to double the sales of Maaza by 2023. This year Frooti has allocated a marketing budget of Rs 100 crore and have invested across a strategic mix of media vehicles with television playing the lead medium for the campaign ‘Frooti Life’. The brand last year went for a new logo and pet bottle revamp, post which the company claims there has been spike in sales. Further, the brand wants to make sure that it is accepted across a much wider audience and is not limited to the perception of targeting only kids. In 1985, when the brand had launched Frooti, they also launched its tetra packs, at a time, when other beverage in the market was

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mostly available in glass bottles. Because of the tetra packaging, it became popular with kids. This summer season, the Tropicana Slice will have a strong presence across digital, retail, radio, print and television. There has been a change in packaging of the bottle and it is highlighted in the creative, where Katrina Kaif bites into the diced neck of the bottle. Priced at Rs 30, the magic of matching the taste of the Paper Boat products with the original Aam Ras or Aam Panna is what makes the brand stand out and is the reason for its success in such a short span of time. The perks of making it available for on-the-go consumption along with an attractive packaging, has made it popular with the youngsters of today. Oils and foods Journal

Their packaging and the product gives a very positive imagery. The new creativity of Frooti is good with ShahRukh Khan – an innovative idea to show how a Frooti life goes on. Frooti was one of the first ones to come up with tetra-packaging, but with players like Paper Boat coming in the market, Frooti has to work more hard to make its branding and marketing strategyadditionally innovative. All the same,it is summer time and people are thirsty and they in general like to consume mango drinks. Advertising doesn’t work here; it is the season which works to push the sale of the products. Mango drinks as a category is very different, thirst drives the consumption and sale of the products. The work of the advertising is to remind the consumers, but it doesn’t drive preference. You don’t need a celebrity for it, a creative with an empty glass and mango drink being poured in it will even work.

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DAIRY BIZ

The Rs 80,000 crore milk business

he Indian dairy market is on a tear. Amul is the big daddy, but dozens of new players want a slice of the cheese. If you thought that all the action in business was concentrated around the e-commerce sector, you could not be more wrong. The unlikely category of milk and dairy products has been seeing some of the most frenetic activity over the past couple of years. Multinational and Indian corporate giants have jumped into the market. Start-ups have cropped up. Fund raising is taking place at a frenzied pace, both from the equity markets and via private equity funding. And new products and innovations are being launched fast and furious. Meanwhile, the 800 pound gorilla in the market - the Rs 31,000 croreAmul (2015/16), is managed by the Gujarat Cooperative Milk Marketing Federation (GCMMF) - is aggressively throwing resources to protect its turf. It wants to hit Rs 65,000 crore in revenues by 2020. But Amul is facing unprecedented

challenge from all sorts of players. GroupeLactalis SA, the world's largest dairy products company, picked up Hyderabad-based Tirumala Milk from private equity player Carlyle. A few months ago, ITC had jumped into the fray with its Aashirvaad brand of ghee and a promise to add a lot more products. Last week, Parag Milk Foods, a Maharashtrabased milk company, raised about Rs 750 crore in an initial public offering (IPO) to beef up its operation. A year ago, Mahara-shtra-based Prabhat Dairy had raised Rs 473.89 crore in an IPO for the same reason. Godrej Agrovet raised its stake from 10 per cent to 25 per cent in Creamline Dairy for Rs 150 crore. Private equity players have pumped in Rs 900 crore already in the past couple of years. Meanwhile, Danone, Nestle and other existing private sector players are adding to their product line-ups and pushing in big money into the market while homegrown dairy cooperatives such as Mother Dairy and Nandini, among others, are also expanding their operations rapidly. And other big global dairy companies are all eyeing the market. Crisil Ratings

"The next level of value growth (for Amul) will come from beverages, paneer, cheese and ice-creams"

R.S. Sodhi, Managing Director, Amul

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nly 18 per cent of the Rs 1,440 crore revenue of Prabhat comes from fresh milk, while the rest is from value-added products such as cheese, milk beverages and yogurts under the GO brand. The company has as many as 67 varieties of cheese, which it sells at retail outlets as well as in institutes. AvaniDavda, Managing Director of the supermarket chain Godrej Nature's

Basket points out that the varieties of milk products she needs to stock has doubled in the past year or so. "We have more than 1,200 SKUs (stock-keeping units) in the dairy category. It used to be 700800 SKUs two or three years ago," says Davda. The retailer's fastest moving dairy product from her shelves is probiotic milk, but other fast growing segments include greek yogurts, fresh paneer, farm fresh milk and nut-based milk. One big change, says Jochen Ebert, Managing Director, Danone Foods and Beverages India, the company that introduced a few new sub-categories, such as flavoured yogurt and ready-toeat custard, is that many things that were earlier made at home are now bought by

35 www.agronfoodprocessing.com estimates that investments worth Rs 15,000 crore will flow into the milk business in India in the next two years. It is an extremely attractive market, both because of its size and its potential. It is also, however, a marketplace fraught with danger that can sink even big players because of its sheer complexity. Over the next few years, the dairy market will see the mother of all market battles as the newcomers try to take away share from Amul, Mother Dairy and the other cooperatives, which have largely ruled the roost so far. But it could also prove a graveyard for many a player, Indian and global. India has always been the largest producer (an estimated 400 million litre per day currently) and consumer of milk in the world. But it remained a boring market largely because the per capita consumption was low, and most of the milk was consumed in its basic, liquid form, or at best as ghee and some butter. Over the past few years, though, a couple of things have changed to make the market vastly more attractive to new players. One, as global dairy consumption stagnates or even dips, Indian consumption is going up. India's per capita consumption of milk at 97 litres a year is way below that of western countries like the US, which boasts per capita consumption of 285 litres per year, or the EU, which consumes 281 litres per capita per year. But while Indian per capita demand is going up 4.5 per cent year-on-year, global per capita consumption is growing at an anaemic 1.5 per cent, and in some countries in the West it may actually be falling, points urban couples and single working women. "Young females who are working find it a good idea to get the yogurt or dahi from outside instead of setting it at home. That means there is an opportunity for commercially produced yogurt and we are focusing on that opportunity," says Ebert. Danone was among the first to introduce a series of yogurts, but its innovations were quickly copied by his rivals, including Amul.

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out T. Nandakumar, Chairman, National Dairy Development Board (NDDB). The second reason is that the Indian consumer - especially the affluent urban consumer - is consuming more valueadded products, which bring in bigger profits for dairy companies than raw milk. The fact that the Indian cooperatives had largely stuck to basic milk, butter, processed cheese slices and ice cream for many decades, had left a gap in the market that allowed some of the new players to come in with new product offerings. And the phenomenon of working couples, single men and women with high disposable income also provided the impetus to look at the category with fresh eyes. Finally, global prices of milk are dipping because of overcapacity, while the Indian market is still growing, both for basic milk as well as for value-added products. "India is strategically a great place to be in, especially for international players. With milk available in surplus and consumption of milk products on the rise, they can not only tap the Indian market, but also use India as a base to serve other global markets," says Rajesh Srivas-tav, Chairman, Rabo Equity, which has taken a stake in Prabhat Dairy. Milk Market Dynamics Out of the 400 million litres of milk that India produces per day, 160 million litres per day (48 per cent) is retained by the producers for their own consumption. The surplus milk that is available for sale is around 240 million litres per day (52 per cent) and out of that only 70 million litres per day is being used by the organised sector - consisting of co-operatives such Danone India entered the market with its array of yogurts and the conventional dahi in 2009. Its products did get accepted but only in niche stores and among a certain class of consumers. But Danone, says Ebert, entered India with a mindset of creating a market for yogurts and focus on increasing the per capita consumption. Yogurt in India, he says, has a per capita consumption of just 3-4 litre, as opposed to France, Holland and Ger-many, which

DAIRY BIZ as Amul, Mother Dairy (wholly-owned subsidiary of NDDB) and Nandini (a brand owned by the Karnataka Cooperative Milk Producers Federation (KMF), as well as private sector players such as Nestle and Danone. Over 170 million litres of the surplus milk continues to be with the unorganised sector, comprising traditional doodhwalas. In value terms, the Indian milk economy is worth Rs 5 lakh crore, growing at a CAGR of 15-16 per cent, out of which the organised milk economy is worth Rs 80,000 crore. Over 80 per cent of milk consumption in India is that of liquid milk and over 55 per cent of the revenue of large co-operatives, such as Amul and Nandini, comes from selling liquid milk. There are still limited takers for value-added dairy products such as cheese, yogurts or flavoured milk, but this is where much of the action is taking place today simply because of its higher margins, and the ability to differentiate and introduce new products. Equally, the fact that the milk cooperatives did not tap this market until the multinationals came in made it an area where the competition was relatively equal. Betting on Value Addition The new players are carving out their place in the segments that include cheese, ice creams, varieties of yogurt and milkbased beverages. "Our strategy is to differentiate. It doesn't make sense to take Nandini and Amul head on. They are too big and well entrenched in the liquid milk category since the past five to six decades. Therefore, we decided to move up the value ladder and grab the upper layer of that category," points out Devendra Shah, Chair-man, Parag Milk Foods. are at 30-40 litre. "The first intention is to share with the Indian population that yogurt or dahi is a fantastic contribution to their diet." Since cold food supply chain is a challenge in India, Danone innovated and created products with greater shelf lives. In the past year, it has introduced ambient yogurt and milk-based products with six months of shelf life. It has innovated

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DAIRY BIZ

products now. From being available in just 10,000-odd stores about a year ago, Danone is today available in over 50,000 stores. Though the company is yet to be profitable in India, Ebert is confident that this market will not remain at this very nascent stage forever. "Our experience is that the per capita consumption of yogurt grows slowly for a very long time and then it grows steeply. It may take 10 years, but I am quite sure that the value-added segment will play an enormous role." Value-added, in fact, is the place where the bulk of the innovations and new product launches are taking place. Both Prabhat Dairy and Parag Milk Foods have set up cheese production units and facilities to produce UHT milk and milkbased beverages. Since they are already into production of cheese, they have also tapped into whey protein (a cheese by-product) - much sought after by bodybuilders and fitness freaks around the globe, says Shah of Parag.

products, such as smoothies, chaas and lassi, which are packaged in ultra-high temperature (UHT) packs. The most recent launch from the Danone stable has been ready-to-eat-custard. Meanwhile, more stores have started accepting these

Nestle, the largest and oldest private milk player in India, has recently launched Greek yogurt, Nestle-a+ GREKYO. Greek yogurt, which is a super concentrated yogurt, is a fledgling category in India and is stocked by premium retailers. It is priced considerably higher than other yogurts, but ArvindBhan-dari, General Manager (Dairy), Nestle India, is confident that it will pick up. Nestle is present in the entire array of dairy product

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n fact, be it ghee, cheese, butter or yogurt, Amul is the clear market leader in most valueadded dairy categories,

JochenEbert,Managing Director, Danone

having quickly copied every new product launched by any competitor. The branded ghee market, for instance, is Rs 5,275 crore and Amul and Sagar (Amul's second ghee brand) together command a 30 per

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DAIRY BIZ robust milk procurement network. SanjivPuri, Executive Director (FMCG Business), ITC, says that the coming months will see the roll-out of newer valueadded dairy products. "The intention is to craft differentiated and valueadded products that would be the hallmark of quality."

categories, especially in the value-added space. "Nestle is keen to establish its leadership position in the value-added segment where we are working on propositions that are both consumer relevant and differentiated."

According to Angshuman Bhattacharya, Consumer Lead and Managing Director of consulting company, Alva-rez and Marsal, while liquid milk generates an EBITDA of 6-7 per cent, a product like curd generates margins as high as 25-30 per cent, icecreams 30-35 per cent, and cheese 35-40 per cent. Therefore, investors are excited in the new milk players, he says.

Similarly, ITC Foods' much talked about entry into the dairy segment finally happened late last year, and that also in the value-added dairy segment, with the launch of AashirvaadSvasti Pure Cow Ghee. ITC, in the last few years, has invested significantly in setting up a

In fact, it is value-added dairy products that sell more in modern retail stores, says DevendraChawla, President (Foods), Future Group. "Cheese is our biggest category today and growing over 35 per cent currently. Milk is mostly UHT and flavoured. The consumer is looking at

cent market share. Amul has a 65 per cent market share in the Rs 1,000 crore branded retail cheese market (followed by Britannia and Go), and a 40 per cent share in the Rs 2,500-crore ice-cream market.

to have a presence in liquid milk. After all, 80 per cent of Indians consume only liquid milk. "The bread and butter has to be milk, else, the business model will not work," insists Sodhi.

Apart from cheese, yogurt and smoothies, many of the state-run co-operatives are also looking at traditional Indian mithais. "There is a good opportunity to push healthy Indian sweets into the market that has the promise of being unadulterated. Nandini, for instance, is pushing healthy sweets," says Nandakumar.

Strategic investors, says Bhatta-charya, understand the constraints and realise that they need to develop the market. "In the long term they want to have a stronghold in terms of being able to supply global demand products such as whey proteins."

However, Sodhi of Amul has a word of caution for the new-age dairy companies. He says while India does have surplus milk for dairy companies to build a robust business, to be successful in India and get the much-needed volume growth, one has

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Private players as well as private equity players are also aware that profitability will shy away for a while. Says Srivastav: "They are prepared to be in the investment mode and that is because India has the largest pool of cow milk, which is known to be the best form of protein and is in huge demand world over."

discovering new products and formats. Our newer stores have a strong range of cheese and other premium products and the response to it has been extremely good." Chawla sees a clear movement from homemade dahi to packaged dahi, yogurt or lassi as an on-the-go snack substitute, and from plain butter as a sandwich spread to cheese spreads and cheese slices. Incumbents Fight Back But even as private companies are betting on the value-added dairy products, big milk cooperatives have also matched them step for step. The country's largest dairy products company, Amul, has been investing Rs 800 crore-1,000 crore yearon-year in setting up new milk processing facilities, as well as building its valueadded products infrastructure. "Nearly 55 per cent of our revenue comes from milk and 45 per cent from the rest. The next level of value growth will come from beverages, paneer, cheese and ice creams," says R.S. Sodhi, Managing Director, Amul. In order to be able to support its value-added dairy play, the co-operative in the past few years also expanded its procurement network to states such as Rajasthan, Haryana, West Bengal and Maharashtra. Tricky Business While the market is immensely attractive, the one thing that could trip up private players is the fact that the milk business in India follows very different dynamics from what happens around the globe. The dairy industry worldwide is like any other profit-focused business, unlike India, where the dairy sector has a clear socioeconomic development agenda. The evolution of the industry dates back to the early 1950s when the iconic Varghese Kurien laid the foundation of Amul, a co-operative model, which enabled the farmers in the Anand district of Gujarat to sell their milk at the highest possible price without interference from middlemen. This model, which empowered the farmers and converted Anand from a milk-deficient region to a milk-surplus

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DAIRY BIZ that it exited because it was reluctant to set up its own supply chain involving multiple farmers. Varun Berry, Managing Director, Britannia Industries, agrees that dairy business in India cannot be viable unless a company invests in a collection model. "The dairy business of Britannia is aRs 400-crore business and we are going back to the drawing board. We have ambitious growth plans in the dairy sector, but we will invest in a collection model."

region, became a national rage, with other states replicating it. More than half a century later, the Indian milk industry continues to work on the same dynamics of offering a source of livelihood to millions of farmers. Over 55 per cent of the organised milk industry continues to be dominated by the cooperatives. While Amul collects over 18 million litres of milk per day (during winter the collection could go up to 23 million litres per day) and has a network of 3.6 million farmers, Karnataka Milk Federation (Nandini), which is the second largest milk cooperative collects 6.6 million litres per day and has a network of 2.3 million farmers. Multinationals on the other hand are used to operating in a very different way around the globe. In western markets, dairy companies depend on an ecosystem of large corporate dairy farms and bulk of the procurement is done from a single farm. The game here is to aggregate milk from many small-sized farmers, which could lead to inconsistencies in both supply volume as well as supply quality. "To be able to organise a supply chain for consistent supply of high quality milk, it requires deep investments and long-term commitment that start at the grass-root level," says Bhandari of Nestle.

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But setting up corporate farms is not feasible in India under the current circumstances. Kuriens farmer-owned milk aggregation model is not only unique to India, but continues to be the only workable model. It enables farmers even with a herd of two or three cows to deliver milk at the nearest collection centre twice a day and get paid much more than the prevalent market rates. The fact that the value-added products volume is still picking up and the supply chain is so complex has often frustrated multinationals. Sodhi feels that it was these factors that led to the exit of Fonterra (in a JV with Britannia) that had entered the market with great fanfare in 2001. While Fonterra is almost four times the size of Amul in terms of turnover, its strategy was just to procure milk and convert it into commodities such as milk powder or unsalted butter and sell it to dairy companies across the globe, which in turn would convert them into valueadded products. This made it a highmargin business. But collecting milk in India was perhaps too much of a logistic issue for the company, says Sodhi. Fonterra exited the market in 2004, though there are rumours that it may again come back. Sodhi feels

Now that is it is clear that it is an absolute necessity to own a procurement network, almost all private players, including new entrants ITC, have their own along the lines of the co-operatives. Even French yogurt maker, Danone, which for the first five years of its operations in India was procuring milk for its yogurts from Hyderabad-based SchrieberDynamix Dairy, has set up its own network in Punjab one year ago. "The key criteria is to control the quality, the quantity and the price of the milk and having a procurement model is an asset. It helps if you develop strength in critical areas of your business and, I think, getting good quality milk at competitive prices is an element that is crucial," says Ebert. Source: Business Today

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Indiaâ&#x20AC;&#x2122;s Only Monthly for Agro, Processed Food & Allied Sector

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121, 1st Floor, Rassaz Multiplex, Station Road, Mira Road (E) Thane - 401107. Tel: +91-22-28555069 / 28115068 Email: info@advanceinfomedia.com. Web: www.agronfoodprocessing.com.

VOl.11 Issue 08 June 2016

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AGRI BIZ

Meet India’s potato king who has raised Rs 25 cr Series-B funding e Indians consume one lakh tonnes of potatoes daily.

after wheat, rice, and maize, the potato overthrew the banana in India as the primary source of starch many centuries ago.

India is the second largest producer (after China) with 4.75 crore tonnes of potatoes produced last year. The fourth most popular food in the world

It is one ‘foreign power’ that has successfully conquered India, so much so that the fact that it was introduced by the Europeans in India around the 17th century almost sounds like fiction.

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As does the fact that potato is a highly nutritious, easily digestible, wholesome food containing carbohydrates, proteins, minerals, vitamins and high quality dietary fibre. According to the Central Potato Research Institute (CPRI), potato provides more nutrition than cereals and vegetables. Burp! There will hardly be a home where, if I

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AGRI BIZ believed that his only chance to test the waters was before he turned 35. “After that you have a lot of liabilities and it becomes risky to quit a well-paying job for the uncertainties of building your own business.” With nothing more than his conviction and the assurance of some potato farmers, this graduate from the GB Pant University of Agriculture and Technology, Uttarakhand, armed with a post graduate degree from IRMA University, took the plunge.

may add, this ugly-looking spud is not transformed into sweet-smelling and delicious fries, mash or curry. It often makes it to the front-page news when its price goes skyrocketing, with the potential to topple the government of the day. Hemant Gaur, Founder, Director of SV Agri. Thus, it is not without reason that this modified stem, masquerading as a root vegetable, is considered a cash crop by farmers here. “Many vegetable farmers in the lower end of technology grow potato because they need quick cash,” says Hemant Gaur, Founder and Director of Siddhi VinayakAgri Processing (SV Agri), a Pune-based potato supply chain company. Starchy affair Forty-five-year-old Hemant, who had worked in the corporate sector for 16 years with organisations like Marico, ITC, and Walmart, realised that potato business was a good business idea. The entire potato supply chain from the farm to the plate is highly disconnected, and Hemant knew that if he could bring some order and integrate the chain then a lot of value could be generated. “Because there were gaps in the chain, we were losing out on the value of the product,” he tells me. Hemant was making a stopover in Bengaluru while on a tour of south

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India to meet farmers. “I wanted to sit on the other side of the table. I knew I would get buyers,” says Hemant about his decision to strike out on his own. He quit his corporate job and decided to take a deep dive into entrepreneurship. But the question was who would back him? “I come from a typical middle-class family from a village near Delhi called Patparganj. Ours is a family of engineers and no one had ever ventured into the world of business,” says Hemant. But he

“I was lucky to have been backed by farmers who were ready to trust me with their produce,” he recalls. Such emotional investment is priceless. And as a gesture of gratitude, Hemant has given them equity in his company. The root of the matter Hemant established SV Agri with Cofounder Ganesh Pawar in 2009 to provide a range of pre-and-post-harvest solutions to potato farmers. He reveals that the company has raisedRs 25 crore funding in a Series B round led by Lok Capital and existing investor Aspada. Aspada confirmed that its contribution is Rs 10 crore. In 2011, SV Agri had raised Rs 5 crore from SONG, a fund backed by Soros Economic Development Fund, Omidyar

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AGRI BIZ returns. The seeds are then multiplied in a lab. “The potato is like a Xerox machine. There’s the software part and the hardware part. For software, we need access to germ plant and different varieties, and for the hardware, we require aeroponic labs.” Hemant says they are working with CPRI’s varieties and some Dutch varieties as well, and will soon release new varieties in the market.

Network and Google, which is also managed by Aspada. “We have been able to give part exit to SONG,” adds Hemant. Talking about his revenue, Hemant says that they are making approximately Rs 60 crore and in the next three years, they have projected to do Rs 500 crore. “We are in a biological product market. It takes four years to actually make a product — the potato seed (but the potato is a 90day crop) — that can be then given to farmers,” says Hemant, adding, “I believe I can work with potatoes for the next 10 years.” Expectedly, the potato market is huge. But the concern for all the stakeholders in the potato industry is how to negotiate this hurdle-infested path. Explaining the broken chain, Hemant says, “The guy who sells seeds has nothing to do with the output and does not buy back the produce from the farmers. There’s another guy who buys the produce. Then there’s a third guy who stores the produce, but he has nothing to do with quality. For him, it is ‘these many bags in, these many bags out.’ He is just into the renting (storage) business. And then there’s yet another guy who is a processor (manufacturer of chips and potato products) who gets

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his material from whatever is available. So, we decided to stitch the chain together and develop some volume, because without volume you cannot do anything. The second important thing we did was to apply technology wherever we could.” In its facility near Pune, SV Agri uses aeroponics, the science of growing plants in the air or mist environment, which yields good quality seeds and high

Chipping in Potato has many mouth-watering avataars. One of them, the alootikki sells like hot cakes. (Image credit: Getty Images) Essentially, SV Agri makes good quality seeds available to the approx 3000 farmers it works with across India and buys back a substantial amount of produce from them. “This allows me to introduce new varieties. In India, only 10 to 12 varieties are available commercially. While in the Netherlands, 50 varieties of potato are available in the market,” Hemant explains. Though it is difficult for the consumer to identify the variety, Hemant says there are always takers for quality products. “Even in a market like Bihar, there are varieties that will get a premium of a rupee or two a kg which is 10 to 15 percent of the cost of potato. Thus, we have a lot of opportunities to introduce good variety seeds to the farmers.” Hemant feels it also

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AGRI BIZ

creates a lot of competition in the market and in all likelihood the farmer will have few chances of getting exploited. “Having said that, I don’t like the use of the term ‘exploited’ in relation to farmers. I would rather say that they were earlier working in a different business environment. I am just providing them with a different option.” Once the company buys back the produce, it is then sold to around 65 small and large processors or manufacturers like MacCain, AkashNamkeen, Yellow Diamond, Pepsico, ITC and others. The company also works closely with the processors in terms of providing training and expertise as well as supplying machinery — thus, taking care of the whole stack. “Many times the manufacturers do not have the capability or awareness to use the produce to its maximum. Sometimes, in the peeling process itself, he may lose 10 percent of the potato. We work with them so that they can get the best out of their machines.” SV Agri has a joint venture with a Dutch company Mooij to set up and modify storage rooms for potatoes. If the storage conditions are not conducive, the produce is as good as useless because of the accumulation of large sugar content. “We have good access to technology on ventilation and storage to provide modified facilities in Gujarat, Indore, Uttar Pradesh, and Bengal.” According to KartikSrivatsa, Co-founder and the Managing Partner of Aspada Investment Advisors, “The focus for us was that SV Agri was an end-to-end supply chain from the farm to the consumer. They have a strong farm engagement and are adding a lot of social capital with a nuanced understanding of the challenges faced by farmers.” Not for couch potatoes When Hemant started his agri-business,

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he knew he would be competing against some heavyweights. “There are only a few organized players in this market. Companies like ITC, Pepsico, Cadila (agro), and Mahindra agri-business have their own streamlined supply chain. I wouldn’t say that Pepsico is our competitor because we also supply them with potatoes. Though we also supply to ITC, I compete with them in the seed division,” says Hemant. As far as ‘real’ competition is concerned, Hemant adds that the availability of good quality seeds is only three percent. “So I am essentially competing with the rest 97 percent of the potato growers who use the tubers directly.” Though the SV Agri team today has the strength of 50 employees, in the early days it was difficult for him to employ the right people. “Asking people to sell potatoes is a tough challenge. At that time, I could not offer much money, only dreams.” His team today includes graduates from IIMs and IITs. “My first employee from IIT Kharagpur was introduced to me through a common friend. He had worked

in ITC for five years and wanted to do something that created an impact. He went through a steep learning curve as he was coming from a large organization to a small company. Today, he holds five percent equity in the company.” Hemant, who enjoys potatoes mostly as fries and in salads, says since he struck out as an entrepreneur, he has been able to tame his ego. “When you are in a corporate job you tend to have a large ego. But I am a happier man today. I think I’ll live longer by five more years,” he quips. The fact that Hemant has succeeded in reaching this far is no joke. In a country, where the agriculture sector is not considered as glamorous as say, the IT industry, it is a wonder that Hemant is now offering his team and the farmers he works with more than just dreams — all riding on the humble potato. As A A Milne, creator of Winnie the Pooh, said, “What I say is that, if a man really likes potatoes, he must be a pretty decent sort of fellow.” Source: www.yourstory.com

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WMD

World Milk Day 2016: A1 Versus A2 Milk - Does it Matter?

y now, youâ&#x20AC;&#x2122;ve probably heard about organic milk as a healthier alternative to industrial milk which has been accused of being laden with antibiotics and stress hormones. Organic milk is essentially chemical-free and healthier as the cows are fed grass or organically cultivated fodder. Still, I always felt that a piece of the puzzle was

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missing. In his book, â&#x20AC;&#x2DC;Devil in the Milk: Illness, Health and the Politics of A1 and A2 Milkâ&#x20AC;&#x2122;, Dr. Keith Woodford reveals the real milk issue. It is the breed of the cow that matters. First, the Science Milk is a great source of calcium and protein. Casein is the largest group of

proteins found in milk which makes up about 80% of the total protein content. A2 cows are the earlier breeds of cows like the desi Indian cows or the African cows that produce this protein in their milk along with an amino acid called Proline. In the new hybrid breeds, the proline amino acid got converted to Histidine due to alteration of genes over the years.

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WMD was that it led to cross-breeding with European cows and import of foreign hybrid breeds for higher yield in order to meet the goal of mass production.

These are the A1 cows that include breeds like Holstein, Friesian and Ayrshire. Stay with me. Proline is strongly bonded to a small protein called BCM 7, which prevents it from getting into the milk produced by A2 cows. On the other hand, Histidine holds a weak bond with BCM 7, so it is easily released in the GI tract of animals and can enter the human body on consumption of milk from A1 cows and interact with the digestive system and internal organs. Why is it Harmful? A group of Russian researchers have shown that BCM 7 does pass into the blood of babies who were fed infant formula which led to delayed psychomotor (brain-to-muscle) development (as published in the International Journal ‘Peptides’). Another report, published in the Indian Journal of Endocrinology and Metabolism in 2012, indicates that it is associated as a risk factor for type-1 diabetes, coronary heart disease and mental disorders like autism and schizophrenia because it may enter your brain through blood. This tricky devil remains a mystery as most of the evidence is based on animal trials and these diseases have a wide range of contributing factors. A human clinical trial conducted at Curtin University in Australia did prove that there were significant differences in digestive symptoms between milks containing A1 and A2 beta-casein. It has been approved that certain unwanted proteins or peptides that do not naturally occur in the human

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body may cause digestive disorders like irritable bowel syndrome or a weak gut. Sanjay Bhalla, Founder of 'The Way We Are' that sells A2 milk in New Delhi, makes it easy for us to understand, “A1 and A2 beta-casein are basically two types of proteins found in different milk varieties. BCM-7 is an opioid peptide that is released during the digestion of the protein found in A1 milk. Since it is not absorbed well by the human body, it may trigger adverse health effects. In New Zealand, there has been a clear distinction between two types of cows – the ones that give drinking milk and those that are known for draught power and used for ploughing, cheese-making or their meat. The BosIndicus cow is the desi breed that produces the A2 milk with the good quality protein but it has been conveniently replaced by the highyielding cross breed, popularly known as HF or Holstein Friesian in India which provides the A1 variety of milk. This is something you need to consider beyond the 'type' of milk.” The History - Operation Flood A little back story. It all began in 1970 when Operation Flood was launched by the National Dairy Development board which transformed India from a milk deficient nation into the largest milk producer in the world. The mission of the project was three-fold - increase production, boost rural production and offer fair prices to consumers. “The sad reality of the white revolution

This has brought us to a situation today where the desi cow has become a dying breed in India. Imagine this - the Gir cow, which is a Gujarati breed, is now being imported from Brazil and the Brahmi Bull, which is another pure breed, is more popular in Australia. It’s ironic that people in these countries are drinking better quality milk from cows native to our country” shares Shakti Lumba, owner of Laksh Farms in Mangar Village in Haryana where he produces organic milk. AnuradhaModi, Founder of Holy Cow Foundation which works for the economic sustainability of cows, has her own herd of cattle as she does not prefer buying milk from the markets, “If the Indian breed gives 8 liters of milk, the HF variety produces 15 to 20 litres of milk and that makes all the difference. In a bid to feed our growing population we have neglected our native breeds of cows whose milk was always considered to be medicinal. After so many years, we seem to have woken up to this reality and efforts are being made to conserve the native breeds of every region. For instance, Pathmeda in Rajasthan has over 1 lakh desi cows and besides milk, they sell skimmed milk powder to other states which is of the A2 variety. It is very important to know the source of the milk you’re drinking every day.” I couldn’t agree more. Operation Flood also gave birth to the system of paying for milk as per the fat content. This concept has had two side effects – either people started keeping buffaloes whose milk has higher fat content or they resorted to adulteration. Case in point: I picked up toned milk packets from some popular brands and found that none of them mention that it’s cow’s milk. It can, therefore, be safely assumed that it is a mix of buffalo and cow’s milk. While it’s an established fact that A1 and A2 milk differ due to their composition, the bigger problem in India is the way

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WMD There is an increasing demand for milk, the way it used to be - fresh from the cows in our backyard but for a country with a population that crosses the billion mark it does not seem like a viable solution. It should be the responsibility of the dairy companies to ensure the welfare of the animals in their procurement as a part of their sourcing policy. But the story still continues. “We need to start somewhere. The growing incidence of lifestyle diseases is a warning to us. We are victims of the rampant commercialization and so is our indigenous breed of cows.

milk is procured. “There have been cases where farmers save the animal fat for family consumption and reintroduce cheap fatty solids in the form of vegetable oil, urea or even pork fat. Moreover, the management of cows is of great concern. At our farms, we have only kept desiGir cows that are allowed to graze, soak in the sunlight and fed organic fodder cultivated at the farm along with immunity boosting herbs like Ashwagandha, Jeevanti and Shatavari,” says Mr.Bhalla. Behind the Scenes in Dairy Farms Khushboo Gupta who manages the Humane and Sustainable Agriculture project for the World Animal Protection NGO and often goes for inspections to farms gives me a glimpse of what happens behind-the-scenes, “The management of animals is the key to production and quality. During the 80's, dairy farms were confined within the cities as we’ve always had the culture of having fresh milk. Urbanisation led to peri-urban dairies that are now situated at the periphery of metro cities. Animals in peri-urban dairies are kept in dark, dingy places with no access to natural environment, fresh air or sunlight. I’ve visited a lot of them and the situation in quite grim. A small example from village level milk production in UP, a farm had seven ponds yet the cows didn’t have access to clean water. They were drinking water from the dirty drains as they were tied in sheds and couldn’t move around.”

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That’s disturbing to know, considering milk is approximately 87% water. She shared an incident where cows suffering from Mastitis (an infection of the mammary gland) were still being milked and in another case where the cows were fed stale and expired bread with oil cakes and dry fodder. Khushboo raises an important question, “How can we expect such cows to produce milk that is healthy and nutritious?” The bell is already tolling. You should know that all the giant milk companies don’t own their own dairies, instead they procure milk from farmers or such small holding dairy units that are in question. As per the FSSAI guidelines, this milk is only reviewed for fat and solids not fat (SNF). Dr.SaurabhArora, Founder of the Food Safety Helpline clarifies, “There are regulations and guidelines regarding the production of milk but they apply to the companies and not the farmers. Globally, the food safety act includes everything from farm to fork but in India the agriculture sector has been left out because it is fragmented and very difficult to manage. Without controlling the product you cannot control the produce. Moreover, we do not have the infrastructure or labs to conducts tests to verify the difference between A1 or A2 milk or even for that matter, testing for pathogens. However, it is the responsibility of the companies who are procuring such milk to inspect for adulterants once every six months.”

The desi Indian cow is a very unique species and needs to be conserved. You can recognize them because of the hump on their back and long horns. Studies have shown that the rays of sun enter the body of the cow through the hump which makes their milk, dung and urine medicinal. If they are not exposed to the sun, they will not get the Vitamin D required to produce calcium in milk. More and more people are going back to the milk procured from native breeds like Sahiwal from Punjab, Gir from Gujarat, and Tharparkar from Rajasthan. It’s sad to know that Vechur, one of the healthiest breeds of desi cows from Kerala, is on the brink of extinction,” says RamneeshTangri, who runs PashupatiGaushala in Noida. The bottom line? “In the medical world, it is still a question mark as most studies have been conducted on animals but it has been found that A2 milk contains more Omega-3 fatty acids which are good for your health. In a country which is predominantly vegetarian, milk is a very important source of nutrition. You need to make the right choices to seek the best quality. If A1 milk makes you feel bloated or uncomfortable, it’s alright to make the switch, as a lot of people have reported that A2 milk is easier to digest ” says Dr.SheelaKrishnaswamy, National President at Indian Dietetic Association.”

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NEWS

Loose edible oil on slippery slope

oluntary consumer organisation, Consumer Voice, has found adulteration in loose edible oil sold in the open market across the country. Laboratory tests on loose edible oil of eight varieties namely Mustard, sesame, coconut, sunflower, palmolein, soyabean, groundnut and cottonseed conducted by the Consumer Voice has found 85% of 1,015 samples collected from 15 States including Delhi were adulterated. Test base The base of the tests was both on quality and safety parameters as prescribed by the Food Safety and Standard Authority of India (FSSAI) and samples were tested at the National Accreditation Board for Testing and Calibration Laboratories accredited laboratory, the Consumer Voice in a statement said. Adulteration in oil can cause diseases like cancer, paralysis, allergy, liver damage, cardiac arrest and epidemic dropsy.

The 15 States covered for the samples collections include Delhi, Haryana, Uttar Pradesh, Gujarat, West Bengal, Bihar, Jharkhand, Maharashtra, Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Rajasthan and Madhya Pradesh. The Consumer Voice says as per the Food Safety and Standards (Prohibition and Restrictions on Sales Regulations 2011), no person is allowed to sell, expose to sale, distribute, offer for a sale, dispatch or deliver to anyone edible oils in loose form. Public interest The State government, however, in public interest, can exempt any or all edible oils from this regulation for a specific period. “The main objective behind these tests made by Consumer Voice was to draw conclusive evidence based on scientific testing that loose edible oils sold are prone to various kinds of adulterations,” said

AshimSanyal, Chief Operating Officer, Consumer Voice. “This is true for all varieties of edible oil and cuts across all States where adulteration is done unhindered with no control by State FDA’s.” The Consumer Voice collected samples of two largest selling varieties of oils in loose form from each State and tested them for visibility, odour, suspended particles, argemone oil and unsaponifiable matter. The Consumer NGO found 85% samples of coconut oil, 74.07% samples of cottonseed oil, 74% sesame oil and 71.77% samples of mustard oil adulterated.

Baba Ramdev'sPatanjali in the dock for misleading mustard oil ad

ndia's drug food regulator, Food Safety and Standards Authority of India (FSSAI) has directed its Central Licensing Authority to issue a show cause notice to Baba Ramdev's FMCG company, PatanjaliAyurved for misleading advertisement of its mustard oil brand. The Food Safety and Standards Authority of India (FSSAI) has directed its Central Licensing Authority to issue a show cause notice to Baba Ramdev's FMCG company, PatanjaliAyurved, for a misleading advertisement of its mustard oil brand. The ad of PatanjaliKacchiGhani (mustard oil) claims that other refined edible oils and mustard oils use a cancer-causing chemical (carcinogen) called hexagon solvent in their manufacturing processes. The FSSAI took the action after India's edible oil industry body, Solvent Extractors Association (SEA), approached the ASCI and urged it to take action against Baba Ramdev and his company.

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Ramdev's company also claimed in the print advertisement that a few companies are mixing palm oil with mustard oil to garner profits, thereby risking the health of people. The edible oil manufacturing companies had taken a strong note of Patanjali's ad and written to Patanjali to withdraw its advertisements. However, since SEA did not get any response from the firm, it has moved the concerned authorities over the issue. SEA rubbished Patanjali's claims by saying the refining process of edible oils ensures that all hazardous agents are removed. "It is obligatory to refine all solvent extracted oils to make it fit for human consumption. So, it is very clear that hexane is not a harmful solvent and even during the refining process, traces, if any, gets removed completely from the oil and, hence, oil obtained from the refining process is completely safe for use," BV Mehta, executive director, SEA

was quoted by PTI as saying. Meanwhile, PatanjaliAyurved Managing Director, AcharyaBal-Krishan, told that the company would respond to the show cause notice. "The fact that hexagon solvent is a petroleum by-product which is carcinogenic in nature is a well-known fact. We have merely pointed it out in the interest of our consumers. If you go on the internet you will find many reports that scientifically proves it," he said. Patanjali was also pulled up earlier by India's advertising watchdog, the Advertising Standards Council of India (ASCI), for 'unfairly denigrating' other products in the market in its advertisements. PatanjaliAyurved is racing ahead of many FMCG majors, including Colgate, Palmolive and Nestle, and registered sales worth Rs. 5,000 crore in the financial year 2015-2016. The company is aiming to double its revenue this fiscal.

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NEWS

SEA has filed complaints with FSSAI, ASCI against Patanjali for misleading ad and Standards Authority of India (FSSAI) and the Advertising Standards Council of India (ASCI) requesting regulators to "take action" against Patanjali, alleging that the company's recent advertisement for 'KacchiGhani Mustard Oil' was not in good taste.

o the Patanjali group is in mess again as the Edible oil industry body SEA has filed complaints with food regulator FSSAI and advertising industry watchdog ASCI against PatanjaliAyurved for alleged misleading ads for mustard oil and sought action against the yoga guru Ramdev-promoted firm. The Solvent Extractors Association of India (SEA) has written to the Food Safety

The vegetable oil industry was a responsible industry and Patanjaliâ&#x20AC;&#x2122;s advertisement is unnecessarily misleading the consumer and also derogatory and denigrating to the oil industry said SEA, adding that industry and such unfounded communications negate the image of the industry. This advertisement willfully wants to create panic in the minds of consumers against solvent extracted oils and refined oils. The advertisements contravene numerous ASCI codes. SEA has requested

them to look into the complaint and direct PatanjaliAyurved to withdraw these misleading advertisements. Patanjali has, however, insisted that its commercial was "based on facts, findings and research. We do not intend or mislead anyone. The association said it had sent a detailed memorandum with documentary evidence to PatanjaliAyurved, drawing their attention and requested to withdraw the misleading statements made in the advertisement against solvent extracted oils. But unfortunately, Patanjali continued the advertisement both in print and electronic media and therefore the Association has approached FSSAI as well as Advertising Standards Council of India (ASCI) to direct the Patanjali to withdraw the said advertisement with misleading facts/ statements.

Traditional Indian cooking oils are healthier than the modern day refined or olive oils

ccording to Industry experts, the traditional Indian cooking oils, such a ghee, coconut and mustard oil recommended by grandmothers, are healthier than the modern day refined or olive oils. Cooking oils form an integral part of Indian diet. However, one is confronted with an array of commonly marketed edible oils asserting host of health claims. Dr SC Manchanda, Department of Cardiology, Ganga Ram Hospital said that in Indian cooking conditions, which mostly involve deep frying, our age-old oils like ghee, coconut and mustard oils score better than refined and other oils in

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health benefits." The observations have been made in an editorial in the Indian Heart Journal (IHJ), the official peer reviewed open access journal of Cardiological Society of India (CSI). Public Health Nutrition Consultant, Santosh Jain Passi said that it is advisable to avoid refined oils, since during the refining process oils are heated as high temperatures resulting in their degradation and generation of toxic substances. "Refined oils degrade easily and therefore, should be avoided for

frying. On the contrary, oils high in saturated fats (like ghee/coconut oil) can be used for Indian cooking, as they are comparatively stable during frying," he added.

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BRAND JOURNEY

Brand journey: Dalda evolves from Lever’s vanaspati to Bunge’s edible oil Being one of the oldest cooking medium brands, Dalda has come a long way with its rural marketing strategies. In order to understand the brand’s journey, BestMediaInfo.com caught up with PrashantSukhwani, Senior Marketing Manager, Bunge India

efined oils have emerged as an essential cooking product for most households in the last two decades. Historically, there was a time when ‘ghee’ was considered expensive and not all households could afford it. That’s when Hindustan Lever (which then owned Dalda, now owned by Bunge India) launched a similar affordable product called ‘Dalda’ as an affordable ‘Vanaspati ghee’ for the common man. The brand has come a long way since then. It was at one time so popular that people thought it was a monopoly in the edible oils category. But it didn’t. There was always local competition which was less highlighted because of less communication and a lesser evolved media back then. Taking us through the journey, PrashantSukhwani, Senior Marketing Manager, Bunge India, explained how Dalda has been relevant with the changing needs of the consumer. From being the oldest player in the category to launching refined oils about a decade back, internet has it all. Sukhwani was glad that people believed the brand had a monopoly. On the rural front, Dalda has been doing some phenomenal work. Sukhwani said, “We have been a part of the biggest melas in different parts of North India like NauchandiMela, BareilyNumaish, etc., which attract crowds of over 10 lakh in a span of a month. These melas become a hotspot of rural consumers who travel from near and far. These melas become a good touch-point for us to engage with our rural consumers. Besides we also run contests for the entire mela duration.” Meanwhile, for metros, the brand does a 360-degree campaign that involves using of traditional media like television, print,

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radio, cable and experiential marketing. The brand’s communication has always been simple across all media. While communication has changed over the last decade, it is no different for Dalda. Sukhwani said, “In the last couple of years, as a strategy, we have been trying to contextualise the brand with the celebrations of consumers. Dalda brand stands on the pillars of legacy, taste, trust, mothers and

shot 10-seconders to establish the presence of the brand in the edible oil space, besides a thematic TVC which focussed on our brand proposition. The launch was a 360 degree campaign,” Sukhwani informed.

expression. Our campaigns and activations reflect the same. In each of our activation we try to give a platform to our target group to express them. Our campaign calendar works on purchase cycles and festive bursts with experimental marketing initiatives to meaningfully engage with our consumers.”

The campaign improved the brand scores by over 5 per cent across key awareness metrics in targeted markets. The brand has consistently been growing in doubledigits year after year, although it couldn’t reveal figures for this and for their marketing budgets.

Transition from vanaspati to edible oil The journey isn’t smooth for all brands. There are always challenges and competition will ensure you do better. For Dalda, the association always rested with ‘vanaspati.’ The challenge was to move this to edible oils as a category. But it was a natural shift considering the nature of business. “During the launch we had the product

During Holi this year, Dalda did the ‘DaldaHoli Milan Samorah’ in more than 15 cities across multiple states. They believe in experiential marketing and wanted to provide a platform to its target group to come and express them. The association was fruitful. “We received tremendous response for it and it has become a brand property with us. Such initiatives help us engage with consumers in a more meaningful way and understand their journeys of evolution which help us contemporise and contextualise our initiatives to suit the consumers better,” said Sukhwani.

Speaking about the way forward, Sukhwani said, “We have quite a few marketing campaigns lined up for the year. We are targeting campaigns around appropriate time periods in different parts of the country. The details can’t be revealed now but expect exciting marketing campaigns coupled with high quality consumer engagement initiatives in the coming months.” Courtesy:BestMediaInfo.com

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NEWS

The power of prebiotics – Taste and explore BENEO’s dietary fibres from nature for a healthy digestive system the World Health Organisation and national health authorities: In China the actual intake of dietary fibre is approx. 13g/day while the recommendation is 25g/day. This difference is called the “fibre-gap”.

ENEO, one of the leading manufacturers of functional ingredients is showcasing its range of prebiotic dietary fibres at this year’s Food Ingredients China (FIC) in Shanghai from 23rd – 25th March 2016. A comprehensive body of scientific studies confirms that BENEO’s prebiotics improve digestive health and are supporting consumers’ overall wellbeing. Globally 87 percent of the consumers are interested in food and beverage products supporting digestive health. Mintel research shows that between 2013 and 2015, 16 percent of functional claims globally were about digestive health, making it one of the most important functional claims. In China nearly every third consumer aged 20-49 has digestive problems such as stomach ache, indigestion or constipation. With 15.3 percent, China belongs to the countries with the highest number of constipated people in Asia. In particular, infants, children aged 6-18 and elderly are affected. Consumers are aware of the beneficial role dietary fibre intake has on their digestive system and that it contributes to their overall wellbeing. However, even with a healthy nutrition rich in fruits, vegetable and wholegrain, people are struggling to consume the amount recommended by

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BENEO’s dietary fibresOrafti® Inulin and Orafti® Oligofructose have shown to improve digestive health by stimulating bowel function in a natural and mild manner. BENEO’s dietary fibres also belong to very few scientifically proven prebiotics. Being prebiotic they multiply and grow bifidus bacteria – the good bacteria in the large intestine, avoiding harmful strains and thus helping to build a strong digestive system. They are soluble fibres and can be easily incorporated into a wide range of products while maintaining taste and texture. Christian Philippsen, Managing Director BENEO Asia Pacific: “BENEO’s prebiotic fibres are made by nature and gained from chicory root via a gentle hot water extraction method. With 8 out of 10 Chinese consumers actively looking for natural ingredients, our inulin and oligofructose are ‘on trend’ for providing digestive health, naturally. In combination with the solid basis of science, manufacturers can make the most of the consumers’ demand for products supporting a healthy digestive system.” Visitors to BENEO’s booth will also be able to sample appealing product

concepts with BENEO’s naturally derived prebiotic fibres inulin and oligofructose. Fibre Gummies – Containing BENEO’s prebiotic fibresOrafti® Inulin and Oligofructose these gummies support digestive health in a convenient and tasty way. Additionally they come with a soft and chewy texture and great taste, which makes it a joy for young kids and adults to boost dietary fibre intake while enjoying a fruity snack. Cereal Bars – Incorporating BENEO’s natural dietary fibreOrafti® Inulin, the cereal bars help to support a healthy and balanced digestive system. At the same time this healthy daily snack is sugar reduced but conveys the same texture and sensorial mouthfeel as a full sugar equivalent. Healthy Grain Biscuits – Enriched with the natural fibreOrafti® Inulin, these grain biscuits become a great source of whole grains and prebiotic fibre to help consumers boost their daily fibre intake and maintain a healthy digestive system. This way they are perfectly in line with the growing popularity of healthy biscuits as a convenient food to curb hunger pangs while enjoying guiltless indulgence. Learn more hands on – BENEO’s experts will also be sharing their knowledge in nutrition science and expertise in food application within a technical seminar titled “Improving digestive health with inulin &oligofructose”. They will be having an interactive discussion with participants to explain how BENEO’s prebiotic fibres are prefect solutions to support a healthy digestive system. The seminar will be held on 24th March 2016, 1.30pm at meeting room M6-02. For further information on BENEO and its ingredients, visit BENEO at Hall 5, Booth 51T11.

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NEWS

Palm oil planters likely to increase acreage this year planters would not only recover the area lost last year but also add nearly 40,000 hectares in acreage, taking the total to nearly 200,000 hectares. India is aiming to attain self-sufficiency in vegetable oils over the next decade. The commodity is third on India's import bill after oil and gold.

ndia is aiming to attain self-sufficiency in vegetable oils over the next decade. The commodity is third on Indiaâ&#x20AC;&#x2122;s import bill after oil and gold. Palm oil planters in the country are hoping to increase acreage this year after the weather office forecast above normal monsoon rains. The total area under Palm cultivation was 1.64 lakh hectres which fell by 50% last year. However, on expectation of good monsoon, the acreage is likely to go up by 40,000 hectares totalling to 2 lakh hectares . The area under palm oil cultivation had nearly halved in 2015, the second straight year of drought in the country, to about 80,000 hectares. Industry executives told that with sufficient rainfall, palm oil

"The industry plans to add 40,000 hectares under palm oil plantation this year on account of a good monsoon," said Sanjay Goenka, managing director of 3F Oil Palm Agrotech. "With this, we also expect a correction in the profitability of the industry which fell by 25-30% and had impacted the industry's short-term plans." Some edible oil producers like 3F are also looking at firming up investment plans to augment solvent extraction facilities over the next few years. Goenka, who is also president of Oil Palm Developers and Processors Association (OPDPA), said his company has chalked out a plan to invest nearly Rs 5,000 crore over the next five years or so to reap the benefits of a favourable economic environment, firming up of palm oil prices in the international market, and

expectations of a favourable monsoon. Ruchi Soya, one of the leading players in the edible oil market in the country, expects to double its area under palm oil plantation in the next four years. Its chief operating officer, SatendraAggarwal, said, "We expect to touch one lakh hectares under palm oil plantation in 3-4 years from the current 55,000 hectares. Sensing good opportunity, we have also put a new crushing plant as an extension of an existing one at Peddapuram, in Andhra Pradesh, with a crushing capacity of 45 tonnes per hour, taking our total capacity here to 90 tonnes an hour." Ruchi Soya is also looking at additional investments in crushing units over the next five years and is analysing the market scenario, said Aggarwal. The palm oil industry is also upbeat with Prime Minister NarendraModi's plan to push for self-sufficiency in edible oils. The government plans to spend nearly $1.5 billion (Rs 10,000 crore) over the next three years to help farmers grow palm oil trees. It is also working on a plan to come up with a minimum support price for farmers along with an oil import policy.

Government to permit foreign companies to import certain key ingredients

nder the proposal to allow 100 per cent FDI in the food processing sector, the government is anticipated to allow foreign companies to import certain key ingredients like flavours and preservatives and may also permit players to retail their products online. The government may permit companies which want to set up units in India to import those inputs as some key ingredients of a food product may not be available in India.

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The Department of Industrial Policy and Promotion (DIPP) that comes under the Commerce and Industry Ministry and deals with FDI related matters, has proposed to allow 100 per cent foreign direct investment (FDI) through government approval route in marketing and selling of food products produced and manufactured in India.

per cent of their total investments in rural areas to create infrastructure like cold chains to benefit farmers.

However, another source said the Food Processing Ministry is insisting on making it mandatory for the foreign players to invest a minimum of about 25 per cent of

During April-December, FDI into the country grew by 40 per cent to $29.44 billion.

The government has said FDI in food processing will help farmers, reduce wastage of fruits and vegetables, give impetus to the industry and create vast employment opportunities.

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NEWS

Mother Dairy is eyeing to cross Rs 10,000 croreturnover in coming 3 years

ue to increasing demand for dairy products as well as fresh and processed fruits and vegetables, Mother Dairy is eyeing to cross Rs 10,000 crore turnover marks in next three years. The dairy company which supplies about 30 lakh litres of milk in the national capital region has posted a turnover of Rs 7,186 crore during last fiscal, out of which about 75 per cent is from its dairy business. Mother Dairy is in process of establishing a 25,000 tonnes per year integrated food and vegetable processing plant in Ranchi at an estimated cost of Rs 75 crore. While the freezing line will have the capacity to produce 5,000 tonnes per year of finished product and which will mainly include

Board (NDDB), has diversified portfolio with presence in dairy products, edible oil, fruits and vegetables (fresh as well as frozen) and pulses. It sells processed food products like juices and ready to cook products under the brand name Safal and also has presence in edible oil segment under the brand name Dhara. peas produced in the state. The pulp and concentrate line will have a capacity of 20,000 tonnes per annum of finished products and this will largely include tomato processing, mango and other fruits. Mother Dairy, a wholly-owned subsidiary of the National Dairy Development

The company also sells fruits and vegetables and other processed food products on its more than 400 Safal stores in the national capital region and Bangalore. During the time of spike in prices of pulses and onions, the Safal outlets had sold these two food items below market prices following the government's instruction.

Bangalore Cooperative Milk Union (Bamul) is investing Rs 426 crore to set up a modern facility

he Bangalore Cooperative Milk Union (Bamul) is investing Rs 426 crore to set up a modern facility to process milk and to make other dairy products. This is due to the rising demand for milk and hence the federation is already to set up a facility in Kanakapura near the city, in about 18 months. The demand for milk in Bengaluru has increased at a rate of 6-8 per cent annually. Animal Husbandry Minister A Manjusaid that brand Nandini sold 2.2 million liters in the city which is four-fifths of its market and it has become important to create the infrastructure immediately as the existing facility is not enough to handle the influx of milk to the city from other districts. At the moment there is only one fully automated mega dairy where besides processing milk, products such as paneer, cheese, and other products are also manufactured and as many as 64 products are sold under the Nandini brand

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and Karnataka Cooperative Milk Producers' Federation (KMF). The KMF's aim is to keep both dairy farmers and consumers happy, said Manju. "We want to make more byproducts as they give us healthy margins with which we can better serve the interests of the dairy sector" The Bamul, he said, will soon open 1,000 Nandini outlets in Bengaluru. Milk procurement in Karnataka has been growing at about 12 per cent annually and daily procurement touched a peak of 7.2 million litres.Encouraged by the healthy 16 per cent annual growth of its ultra-high temperature (UHT) milk, the KMF is seeking to ramp up the production of this

special category which promises a 12-24 week shelf life. KMF is planning to convert a significant chunk of its surplus milk into UHT milk instead of powdering it, which is expensive. UHT milk is sold in Singapore, Andhra Pradesh, J&K, the northeast and Goa. KMF has a surplus of 1.5 million litres of milk, of which 7 lakh litres go for the school milk programme.

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NEWS

To raise milk processing capacity Amul set to invest Rs 2,500 crore

CMMF, which sells products under the Amul brand, is all set to invest about Rs 2,500 crore to elevate its milk processing capacity to more than 38 million litres per day in the next four years. Gujarat Co-operative Milk Marketing Federation (GCMMF) Managing Director R S Sodhi said that there has been rise in milk demand across the country and therefore, they are planning to raise milk processing capacity by another 10 million litres per day from current capacity of 28.1 million litres per day (mltpd). The cooperative is looking to raise the capacity by 2020, which will require an investment of about Rs 2,500 crore. Sodhi added that as of now, they plan to establish one plant each for milk processing in Kolkata and Mumbai and two more plants in Gujarat. Besides this, Amul plans to raise the capacity in few existing plants. The cooperative has about 60 various processing plants, of which 40 are in Gujarat only. In the last six years, the dairy cooperative's turnover has jumped nearly three-fold to Rs 23,000 crore and is aiming to more than double it to Rs 50,000 crore by 2020 and there are 17 member unions of GCMMF associated with more than 36 lakh farmers across 18,600 villages of Gujarat.

121, 1st Floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist Thane - 401 107, Maharashtra. Ph. : +91-22-28115068, 28555069, 8689979988 Email : info@agronfoodprocessing.com www.agronfoodprocessing.com

VOl.11 Issue 08 June 2016

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NEWS

FSSAI to regulate and standardize Prasad in temples, offerings in mosques, churches and other places of worship certificate, but given 300 million faithful—as per the 2001 Census—visit places of worship daily and partake of the food offerings, receiving it as a ‘blessing’, there is a need to ensure quality.

he Food Safety and Standards Authority of India (FSSAI) is now looking to regulate and standardize Prasad, offerings at temples, mosques, churches and other places of worship. Not that the divine need a FSSAI

With temples, churches, gurudwaras, etc., largely left to manage themselves with very little regulation from the state, there is absolutely no checking of standards of the Prasad—though temples insist that they use the best ingredients and produce the Prasad in a safe manner. Even so, there is no standardization; from packaging to expiration dates, everything varies from

temple to temple, church to church. The food regulator, which zealously wants to get religious institutions or the vendors they source from to apply for FSSAI licences. The move is a necessary one, but the problem lies in implementing it. And not all religious institutions favour a licensing regime; rather, they say, the FSSAI should issue a set of guidelines and encourage voluntary compliance. Given the Prasad/ offerings aren’t just food—they come with deeply-held beliefs about culture and divinity—any regulation will have to come only after the faithful as well as place-of-worship administrations have been duly sensitized. And for FSSAI that is already short of manpower and resources it will prove a tough challenge.

FSSAI tells state-level authorities to inspect various tea processing units the limit on iron filling. And now has asked the to check adulteration of iron fillings in the beverage. After finding wide variations in the test results, the FSSAI said that until method of assessment for iron fillings is finalised, the state food safety officials can carry out inspections at the factories.

he tea production in India, the world's second largest tea producer, is at 1,213 mn kg in 2015-16. But now has come under the scrutiny of FSSAI, which recently conducted a large-scale laboratory analysis of tea powder for determining

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According to the food regulator, till a final method of assessment is updated, the enforcement authorities may carry out inspection in tea factories rather than on retail outlets, etc. to ensure that Food Business Operators (FBOs) involved in the processing/ manufacture of tea operate with the requisite equipment

for removal of iron fillings. The continuous presence of iron filings in tea has raised safety concerns and there have been many demands to fix an upper limit and FSSAI had made that the maximum limit for iron particles in tea powder at 150 mg per kilogram. In many cases, it has been found that the tea powder is contaminated with iron filings. Iron fillings enter tea due to wear and tear of the processing machinery, the tea leaves are dried in a sieve fitted with a mesh and leaves are cut using iron rollers. Factories use huge magnets to remove iron filings from tea powder. The country's overall shipments of tea rose 10 per cent to Rs 4,200 crore in 201516 from Rs 3,824 crore in the previous fiscal.

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NEWS

Food inflation on the way to increase due to High agri prices

he wholesale price index (WPI), which in April turned positive after 17-months of negative route, is likely to hit the maximum in three years on rising prices of both agri and non-agri commodities. Severeincrease in the prices of pulses, vegetables and sugar led to a turnaround in WPI for April. While surplus rainfall is predicted this monsoon season, experts believe, prices of agri commodities would continue to remain elevated till summer sown crop hits mandis in August this year. The WPI at 0.34% in April was due to of two preceding drought years, resulting into lower output of pulses, sugar and vegetables. Interestingly, unseasonal rainfalls early this year damaged matured crops in the field. Lack of proper rains over the last two years and structural bottlenecks in the agrarian economy have resulted in untimely spikes in certain key food items. The case of pulses is a case in point, wherein structural impediments have resulted in rising prices despite higher level of imports throughout the last two years. Given the current situation, expect WPI to rise through most of the year and possibly breach the 3% mark in due course. Therefore, prices of agri commodities

shot up in the last one month. Despite several actions taken by the government to stop stock holding and therefore arm twisting in the physical markets, price of pulses jumped by nearly 25% to Rs 5720 a quintal (chana) in April. With overall weight of 0.72% in WPI, price of pulses moderated in March on fears created by the government through control measures. "Pulses production was lower globally in the last two years due to impact of El Nino, resulting in deficient monsoon. Incidentally, output was lower in India too. Consumers will have to live with higher prices until the next season crop hits the market i.e.: August. Also, with an overall weight of 1.74%, sugar price remained elevated to trade currently at Rs 3700 a quintal. The price of sugar has risen sharply in the last few months over lower production estimates. Industry body Indian Sugar Mills Association (ISMA) forecast India's sugar production at above 25 million tonnes for the current season as against 28.3 million tonnes in the previous year. Global commodity major Kinsman estimates India's sugar output at 25.1

million tonnes. Sugar prices, after touching a three-year low of Rs 2300 a quintal in July 2015, have been on a rising trend since August 2015 in anticipation of stock clearance backed by exports and lower production in Maharashtra. The announcement of cane production subsidy in December 2015, the expected increase in sugar exports and the likely global sugar deficit scenario have combined to cause sugar prices to firm up to 3700 a quintal now. With a weight of 0.20% in the WPI, potato price jumped by a staggering 20% in the benchmark Agra, Uttar Pradesh mandi to Rs 1000 a quintal. The vegetable price continued to move upwards even in May. The price of potato shot up by another 25% in May.

Agri-Business Policy-2016: Incentives, subsidies for agro and food processing units by Gujarat Govt

he Gujarat Government has announced its Agri-Business Policy-2016, with an aim to empower farmers to help them get maximum benefit of the increased demand of quality agriculture produce in the international market, The policy, which has laid emphasis on agro and food processing units and agriculture-based infrastructure projects, declared several incentives and subsidies for farmers of the state for value addition not only to their agriculture produce, but also to agri-

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waste. Under this policy, assistance is being provided to agro and food processing units and agriculture-based infrastructure projects and this will give maximum benefit of the increased demand of quality agriculture produce in the world to the farmers in the state. Under the policy, the government has announced various subsidies for industries investing in agro and food processing units. Such units would get interest subsidy on bank loans for expansion,

modernization and diversification of the business.

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NEWS

Government to frame national policy on food processing

diversification and ensures better return to farmers."

he government is to frame a national policy on food processing at the earliest as directed by parliamentary panel and recommended the committee should be briefed about the progress made in that direction. The committee would like the ministry (Food Processing) to accelerate the process of discussion with all concerned including stakeholders so that a national policy on food processing sector is drafted and implemented without further loss of time. The committee, headed by Bharatiya Janata Party MP Hukumdev Narayan Dev, said the panel should be "apprised of the initiative undertaken by the ministry in this regard". Stating that food processing sector is an

important segment of Indian economy in terms of its contribution to gross domestic product (GDP), employment and investment, the committee stated that, "A well-developed food processing sector not only helps in reduction of wastage, improves value addition, promotes crop

The committee, which among others has Congress members like JanardhanDwivedi, C.L. Ruala, B.S. Yeddyurappa from BJP, Tapas Mandal (Trinamool) and ArjunCharanSethi (BijuJanata Dal), took exception for "lesser allocation of funds" by the Planning Commission and finance ministry to the Food Processing Ministry and observed that "due to non-availability of adequate funds" could disturb some projects. "The committee strongly recommends that the ministry should raise the matter with finance ministry to allocate funds as per their requirement," the panel said.

Cremica Food Industries aims at 35 pc growth in FY17

ith increased distribution network expansion and capacity addition, Cremica Food Industries is viewing a growth of up to 35 per cent in revenues for the fiscal year 2016-17, and are at around Rs 200 crore now. Cremica Food Industries makes condiments such as tomato ketchup, sauces, sandwich spreads, mayonnaise, toppings, salad dressings and premium snack foods. Cremica Food Industries Ltd Chairman and Managing Director AkshayBector, said that this will be achieved by capacity addition and expansion of the number of distribution outlets across the country and the focus going forward is on geographical expansion and by the end of the current fiscal the company will also increase the number of distribution outlets to 75,000

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from the current around 50,000 outlets. At present, key accounts constitute only around 25 per cent of our revenues while 75 per cent of the revenues come from retail and hotels and restaurants/ cafes. Regarding the geographical expansion the company has always been strong in north so apart from the consolidation here the growth areas will be West, South and East, added Bector. Cremica is also planning to open a Food

Park and a tomato paste line at Una in Himachal Pradesh at an investment of Rs 100 crore and also planning a new facility this year, the location will be finalised next month.

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NEWS

Andhra targets to get Rs 5,020-cr investments and 50,000 jobs in food processing industry

Girija Shankar, secretary to government (mines & geology), industries and development stated that the state government targets to entice investments worth Rs 5,020 crore in food processing industry and generate employment for 50,000 people in the state by 2020. Shankar also said that food processing industry is one of the thrust areas of the government. The food processing industry can bring revolutionary changes, as it provides lot of employment, remunerative prices to farmers, economic and social benefit. Abundantly rich with huge production levels, the state offers enormous opportunities to the entrepreneurs in establishing food processing units with food grains cereals, pulses, fruits, vegetables and spices, dairy, poultry, meat, plantation, horticulture and other agriculture allied products. The state government formulated new policy to meet the requirements in Andhra Pradesh, after studying the food processing policies of 10 states

in India. Out of 66 MoUs signed in the Partnership Summit held in January, 35 companies offered to invest Rs 3,000 crore, which will create employment for 30,000 people. Necessary steps will be taken by the government to promote Farmer Producer Organisations (FPOs) to work collaboratively with the farmers in improving the quality of food products, which is essential to tap the overseas market,” he informed. A state-level consultative committee should be also formed by the government with stakeholders and trade representatives to promote the industry, he felt. APCCIF elect presidentMuthavarapuMurali Krishna and others spoke. Scenario in AP • Wide opportunities for FPIs with food grains cereals, pulses, fruits, vegetables and spices, dairy, poultry, meat, plantation, horticulture and agriculture allied products • 66 MoUs signed in the Partnership Summit held in January • 5 cos. offered to invest Rs 3,000 cr,

which will create jobs for 30,000 people • Higher power tariff, lack of testing labs & research institutes hampering the growth of industry • Stress on setting up of separate financial institution at • macro-level in AP for easy credit flow & national-level • institutes like CSIR, ICAR

FDI in food processing may cross $1 billion in next 2 years: HarsimratKaur Badal

nion Minister HarsimratKaurBadal has stated that, foreign direct investment in the food processing sector is expected to cross $1 billion in the next two years, helped by reforms in FDI space and streamlining of FSSAI regulations. The government has announced 100 per cent FDI in marketing of food products produced and processed in India in this year's Budget According to the minister her ministry has permitted development of 17 new food

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parks across the country and is making efforts to operationalize all 42 parks by 2019 that will help double processing level of fruits and vegetables to 20 per cent and is setting up of 30 new cold chains in the country. Also, the rules and regulations of the food regulator FSSAI have been streamlined to boost food processing sector. The food processing sector has attracted $463 million worth of FDI during AprilFebruary of the last fiscal and growth of the food processing sector will help

farmers get better price for their produce as well as lead to reduction in wastage and lower prices of fruits and vegetables. Badal asserted that in the last two years, seven food parks have become operational while during the UPA's 10-year tenure, only two parks were operationalized, adding that the target is to operationalize all 42 mega food parks by 2019. Once the processing level reaches 20 per cent, consumers would have the option of processed fruits and vegetables and that too at affordable prices.

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Event Calendar-2016 Months

July-2016 8th-10th Compack Mynmar Burma 13th-15th Propak China 13th-15th Bevtek Sanghai China 22nd-24th Bakers Technology Codissia Trade Fair , Coimbatore, India 27th– 30th Packplus, Delhi 24th– 26th Food South, Chennai August 2016 22nd– 24th FI INDIA & HI, New Delhi September 2016 1st-2nd Vita Food Asia Hong Kong 7th–9th FoodPro, Chennai 22nd–24th International Foodtech Mumbai 22nd–24th Annapoorna, Mumbai 28th– 29th Indian Ice Cream Congress & Expo 29th-1st Food Hospitality World, Goa October 2016 4th-7th Tokyo Pack Japan 4th-6th Innopak Spain 5th-6th Easyfairs Sweden VOl.11 Issue 08 June 2016

Events

10th-14th Agroprodmash Moscow Russia 11th-14th China Brew & Beverage Sanghai 15th-16th Evenord Germany 21st-23rd Cake Fest Poland 22nd-25th Sudback Germany 22nd–24th Dairy Feast, Lucknow 25th-28th Cibus Tec Italy November 2016 1st-3rd Foodtech Denmark 2nd-4th Worldfood Kazakastan 2nd-6th Indagra Food Romania 2nd-5th Eurasia Packaging Turkey 9th-12th Interfood & Drink Bulgaria 14th-17th Emballage France 19th–22nd Agro Tech,chandigarh 23rd-24th Packaging Innovations Netherlands 25th-26th Empack Belgium 27th-30th Intervitis Germany December 2016 15th–17th Drink Technology , Mumbai 30TH-1st palmex Latin America Columbia

59 www.agronfoodprocessing.com

South Asia’s One & Only Ice Cream Industry Event

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EVENTS

Presents

Meetings Discussions Knowledge Entertainment

Indian

Ic e cr ea m Congress & Expo 2016

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Exhibition

28th-29th Sept, 2016 Expo Center, A-11, Sector-62, NH-24 Noida ( Delhi NCR)

Partners

Sobhagya Confectionary Pvt Ltd.

Supported By

Online Media Partner

Ofcial Media Partner

Food Agrprocessing Indian’s 1st News Portal for Agro, Food Processing & Allied Segments

www.agronfoodprocessing.com

A Supplement of Beverages & Food Processing Times

Times

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Media Partners I n d i a ’s O n l y M o n t h l y f o r A g r o , F o o d P r o c e s s i n g & A l l i e d S e g m e n t s

India’s First E Magazine log on to www .agronfoodprocessing.com

Contact for Stalls & Partnership Firoz H. Naqvi : +91-9867992299

Sameer K +91 9833325839 Seema Shaikh : +91-8689979988

Indian Ice Cream Congress & Expo

121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068. Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

VOl.11 Issue 08 June 2016

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WPP License No. MR/TECH/WPP-308/TW/2016

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