Final oil & food august 2013 low res by Advance Info Media & Events

Fortification In Bakery Products Consumer Enticement And Better Health Pg 11

Going Nuts Over Doughnuts

Pg 15

Eleven Trends Shaping Flexible Packaging

Pg 18

Mustard Oil Can Be Backbone of Indian Edible Oil Economy

Pg 23

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Oil & Food Journal Vol. 08, Issue 10, August 2013

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Oil & Food Journal Vol. 08, Issue 10, August 2013

Vol 8 Issue 10 August 2013

o the Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of 12 new mega food processing parks at a cost of Rs.1, 714 crore and they very boldly state that this move would help in development of adequate infrastructure in the supply chain for the food processing sector which would result in reduction of wastage of agri produce and give remunerative price to the farmers. Each mega food park has been planned to have 30-40 industries and will generate about 40,000 direct and indirect jobs. The CCEA also approved implementation of a scheme of integrated cold chain, value addition and preservation infrastructure during 12th Plan with an allocation of Rs. 786 crore. Under the scheme, an entrepreneur is eligible for grant-in-aid up to 50 percent of cost of plant and machinery and technical civil works in general areas and 75 percent in North East and hilly areas subjected to a maximum of Rs. 10 crore. Saying this I wonder about those 30 mega park that were approved during the 11th Five-year Plan (2007-12) The 30 mega food parks were sanctioned by the CCEA in three phases. While on paper all of this would imply the setting up of giant capacities in different parts of the country benefitting both processors and farmers, the ground reality is quite different. As of now, there are only two mega food parks (from the initial lot of 30) that have seen the light of day. One in Ranchi called the Jharkhand Mega Food Park, and the other, called the Swami Ramdev Baba Food Park in Haridwar. What happened to the rest? They are yet to get off the ground. Though four including one by the Future Group is in advanced stages of completion in Bangalore, the fact that there have been few corporate takers for food parks in general is obvious to many. So what actually is the hurdle? Harsh Mariwala, chairman & managing director, Marico Ltd, puts straightforwardly that FMCG companies are interested in marketing, not manufacturing. These projects make sense for B2B players, those who are involved in supplying products to the food industry, restaurants or hotels. It makes no sense for us to get involved in production. On an average, almost 50% of manufacturing in the Rs 1.8-lakh crore FMCG industry in India is outsourced. The trend, according to experts, will only grow, with the proportion of in-house to outsourced production expected to rise in the coming years. Like most other infrastructure projects, the key challenge in setting up food parks lies in land acquisition, therefore most projects, according to persons in the know, have failed to take off mainly because of the bottlenecks involved in land acquisition. The other challenge is in being able to attract the right set of tenants, basically, manufacturers and ancillary players, who can come forward and set up base in a food park. Kishore Biyani, chief executive, Future Group, while declining to get into specifics said his group had managed to ink tie-ups with 40 national and international players who would work out of the 115-acre food park his group company Future Ventures was setting up. This park will get operational by December this year according to Mr Biyani and It will be involved in collection of food items from different centres around the food park. Once brought into the food park, it will be further processed. Companies such as LT Foods, the maker of Daawat Basmati Rice, have already inked a joint venture with Future to utilise its food park for manufacturing and processing rice and other staple items besides snack foods. Biyani claims the initial investment by his group to set up the food park has been to the tune of Rs 300 crore. The manufacturers and ancillary players who will work out of the food park are expected to bring in an additional Rs 700 crore, taking the total figure to Rs 1,000 crore. But while Future is on course to get its food park up and running, the same cannot be said about the other projects that the government had given the nod to in the eleventh five-year plan. Details remain sketchy about these projects. The bigger challenge also is the lack of agriculture sector reforms that many believe should run concurrently even as infrastructure for food processing is set up in the country. For instance, 70% of agri business in India happens through co-operatives. How they be integrated into this scheme of mega food parks? If that is addressed that could help in giving food parks a huge fillip. The Bhagalpur mega food park project in Bihar, proposed by Keventer Group, has been shelved as the company has withdrawn its plan to implement the project due to unavailability of land. Around 125 acre of land was identified for this project, but due to strong protests by farmers and landowners, the company failed to take possession of the land. The state government will now inform the Food Processing Ministry and then proceed according to its decision. The ministry approved this mega food park at Kahelgoan region in 2010. The project was expected to be set up with an investment of Rs 200 crore. Future Group had also bought stake in this project last year. The company had also planned to establish a maize processing unit and cattle feed unit in this project. Eventually the main perpetrator in the mega food park letdown is defiantly the problem of land acquisition. This may not be the main but it is one of the humongous issues in the failure of implementation. A mega food park needs minimum of 50 acres of land. According to the Vision 2015, formulated by MoFPI, the government planned to establish 30 mega food parks in public-private partnerships across the country, intending to facilitate food processing companies. And now a further of 12 more mega parks, what are their prospects, will they face the same fate as the earlier 28 one (2 did turn out be successful). Well let’s wait and watch. The ministry had proposed to create one crore jobs, and had outlined investments of Rs 1 lakh crore for establishing mega food parks, integrated cold chains, modernise abattoirs, research and development units and quality control laboratories. Mega Food Parks, however, failed to attract big companies, such as Coca-Cola, PepsiCo, ITC, Parle, but has attracted interests from small and medium sized companies. MoFPI has recently sought suggestions from industry and other stakeholders, and could frame a fresh policy. MoFPI is also planning to ask developers to complete projects within 30 months from the final approval.

Oil & Food Journal Vol. 08, Issue 10, August 2013

Contents 11

GOING NUTS OVER DOUGHNUTS

Eleven trends shaping flexible packaging

MUSTARD OIL CAN BE BACKBONE OF INDIAN EDIBLE OIL ECONOMY

FORTIFICATION IN BAKERY PRODUCTS Consumer enticement and better health

Buhler Pulse Processing solutions designed for higher yield, better quality dal and improved profitability

News Hybrid mustard can help cut edible oil import

Major edible oil refineries face duty roadblocks

Cookie Man eyes bigger bite of market

INDIA: Britannia to build Gujarat biscuit facility

Indian brand making one of world’s best selling biscuits

Priya Biscuits to open Rs 45 cr plant

Amul forays into bakery biz, new plant for cookies on cards

ITC targeting Rs. 1 Lakh Crore Sales From New Fmcg Businesses

Court stays Himachal ban on polythene-packed chips, candy

Veterinary university develops new food processing technology

MTR moves to stop rival from snacking on its market share

Hokey Pokey Ice creams Procures Pre Series Funding

Amul adopts green tech for its chocolate plant

India wastes Rs 44,000 cr worth food every year

Mother Dairy to launch frozen onion rings, English carrots

Ruchi Soya plans palm processing unit in Orissa

DuPont expands integrated science capabilities in India

HRD ministry backs omission of packaged meal in food bill

Indo-US trade can be mutually beneficial, say dairy exporters

Naturex’s factory in India receives FSSC 22000 certification

ADM announces new reduced fat cocoa powder

Treatt launches stevia friendly RTD tea product

India’s JBF Industries building PET film plant in Bahrain

Indian brand making one of world’s best-selling biscuits

DS group enters dairy market, with ‘ksheer’

VDMA: Germany machinery orders up 14 percent

Oil & Food Journal Vol. 08, Issue 10, August 2013

Consumer enticement and better health

HEALTHY & TASTY

FORTIFICATION IN BAKERY PRODUCTS With the demand for bakery products growing exponentially across the country over the past few years, the bakery industry has been experiencing an upward spiral with changes in product pattern as per emerging trends. In fact change is the key word right now in the bakery industry when it comes to ingredient variants, machines & equipment and marketing services. The Indian bakery industry is the largest of the food processing industries, estimated to be over Rs 7,000 crore accounting for a compounded annual growth rate (CAGR) of 15%. The industry has traditionally been and largely continues to be in the unorganised sector contributing over 75% of the total production.

Line production In almost all south Asian countries, particularly in India and China, the line production of baked products is increasing, with the number of traditional craft bakeries churning or kneading out products like biscuits, cakes, Rusk or commercial breads and also home bakeries on the rise providing their neighbourhood with personalised products and adding personalised creative value. The bakery industry, valued at Rs 69 billion, has achieved the third position in generating revenue among the processed food sector in the country. Bread and biscuits hold about 82 per cent of the total share of the bakery industry. Beginning with ingredients, we see a major shift from the use of plain flour (Maida) to whole wheat, multigrain or fortified flours. Although Indians have learnt baking from Oil & Food Journal Vol. 08, Issue 10, August 2013

the Europeans and the Europeans did use all purpose or plain flour for baking, the time has come where Indians should bake with whole wheat flour which is healthy and rich in nutrients for consumption; the Indian consumer needs to customise their mind and taste buds and adapt it to a healthier alternative. This means by altering the basic ingredient, processes, techniques and equipment the service and marketing strategies will witness change. Today many leading retail chains have food courts with bakeries and cake shops alongside. The consumers seek more luxury products with low fat, better appeal, better taste, with more natural or organic ingredients like multigrain, fresh fruits, chocolate or milk. There is rapid change in food preferences from end-consumers to gear up with the pace of changing demand - definitely a challenge the industry faces.

Consumer covet People ask so much more from their foods today. They want better nutrition, and they define it to go beyond vitamins and minerals. Way beyond. They want antioxidants. They want flavonols. They want fiber. They want omega-3s. And yes, they also want more vitamins and minerals. Consumers want foods to do more than satisfy hunger. They want energy, digestive health; relaxation, satiety and cognitive benefits, and they want them now. Whatâ&#x20AC;&#x2122;s a formulator to do? Thatâ&#x20AC;&#x2122;s where nutrient premixes come in. Premixes are custom-designed, complex blends of ingredients associated with health and wellness. They can combine vitamins, minerals, nutraceuticals, botanicals, colors, flavours, gums, fibers, amino acids and more. 11

HEALTHY & TASTY

From the baker’s or snack maker’s standpoint, premixes simplify formulation by providing all-in-one, customized blends assembled by a supplier with access to a worldwide supply chain. The alternative is to stock and scale nutrients separately, with all the accompanying risks of inconsistency, scarcity, inventory expense and storage limits. The grain-based foods industry has used standardized enrichment blends for more than 70 years. But more recently, bakers have desired to differentiate their products from their competitors, traditionally, they accomplished this by adding a variety of ingredients — nuts, seeds, flavours, herbs, spices, dairy ingredients and more. Now, adding a variety of nutrients answers that marketing need as wells Even when many producers aim at similar fortification targets, diverse nutrient combinations allow each to take a unique approach. For example, if the target is bread offering as much calcium per serving as an 8-oz glass of milk, then the baker must add 330 mg calcium. The nutrient can be supplied as calcium carbonate, calcium sulphate, cultured whey, calcium lactate and monocalcium or dicalcium phosphate alone or in combination. Variety: the new normal In the US, state laws require producers of white bread and white flour to enrich their products with thiamine, riboflavin, niacin and iron, with calcium optional, but breads made from whole grain and non-wheat flours are exempt. When the federal government mandated nutrition labelling for all packaged foods in 1995, enrichment of these products became de facto nationwide. Folic acid joined the national standard in 1998. Also, the federal Standards of Identity for grainbased foods dictate required enrichment practices for specific items. One important difference is that whole wheat bread, whose formulation is governed by a US Standard of Identity, does not carry folic acid because whole wheat flour is not enriched. Various grainfoods industry groups are lobbying the Food and Drug Administration to change this, but the effort faces an uphill battle. Tectonic shifts in the bread market — the waxing of variety breads and waning of white enriched styles — tripped the trend sensors among many marketers. The new

normal of variety products could crack possibilities wide open for additional nutrients. India - Fortification Status India is the second largest producer of wheat in the world after China. Of 90 million tons of wheat grown in India, roughly 70 million tons are consumed in the country. In rapidly growing urban and industrial areas, consumption of wheat-based foods has increased exponentially over last few decades. In urban Rajasthan, for example, wheat consumption is 308 grams per capita per day. In 2000, the Darjeeling district of West Bengal became the first place in India to fortify wheat flour. Now we estimate that 2.2 million tons of wheat flour are fortified every year in India in the states of Delhi, Rajasthan, Madhya Pradesh, Andhra Pradesh, Kerala, and West Bengal. This amounts to 12% of the industrially milled wheat flour in the country. Flour fortification is supported by the government of India, several state governments and their ministries and departments dealing with cereal grains and food distribution. Active involvement of international agencies, national health and nutrition research institutions, and flour milling professionals have contributed toward wheat flour fortification. Most fortified flour in India is distributed in the government’s welfare system. We are working with public, private, and civic sector partners to expand fortification to all types of flour in the open market and to expand coverage to all states. We are also exploring the potential for rice fortification to be a cost-effective, sustainable approach to preventing vitamin and mineral deficiencies here. Our definition of the legislative status is: Mandatory: Legislation that has the effect of mandating fortification of one or

more types of wheat or maize flour or rice with at least iron or folic acid. Planning: There is written evidence that the government is acting to prepare, draft, and move legislation for mandatory fortification. Voluntary: Most countries allow voluntary fortification. We use this category if at least 50 % of the industrially-milled wheat or maize flour or rice produced in the country is being fortified through voluntary efforts. The fortification in India does not reach 50% of the state’s total production, so it does not meet this definition of voluntary. Whole made more so What works in white bread, however, doesn’t necessarily do the job for 100% whole wheat products. This is due to the difference in background contributions of vitamins and minerals from the bakery ingredients as well as the serving sizes. Whole wheat flours, like other whole grain flours and meals, provide more native nutrients than refined flours. This is taken into consideration when formulating nutrient premixes to go on top of them, but generally the contribution from the grain ingredients is a small fraction of the final label target. Ultimately, the premix carries most of the weight of that requirement.” With whole wheat and whole grain, the Oil & Food Journal Vol. 08, Issue 10, August 2013

Going beyond standard Among nutrient premixes that outdo mandated enrichment patterns, there is no standard product; however, most premix suppliers carry blends developed around health-and-wellness market positions. Such presets provide a starting point for formulators. As the project develops, the supplier then customizes the nutrient blend to exact needs. Such premixes can provide a simple entry into the better-for-you market and what the premix contains depends on exact needs. Each customer has his own needs, which depend on the specific country, the application and the end product, and naturally also on the target group such as children, older people, athletes or people who like lifestyle products like energy drinks. Plus, each premix has to be exactly right for the customer’s production process. Typically delivered through precision micronutrient feeders, premixes usually take the form of dry blends, although oil-soluble liquid emulsions are normally used for vitamins A, D3, K1 and the colour beta-carotene (a precursor of vitamin C). Oil & Food Journal Vol. 08, Issue 10, August 2013

Another format in this line is the liquid slurry system that injects water-soluble materials into the water line supplying the mixer. Tableted premixes and soluble batch-pack pouches provide convenient consistency and avoid the need to scale powders. Although such forms are available, they are not yet common for nutrient premixes. Most premix users prefer to scale the dry blends themselves to properly dispense the required quantity. Encapsulation protects sensitive materials from interaction with other ingredients as well as atmospheric oxygen and moisture and can mask off-flavours and unpleasant odours and this method can also time release at a specific temperature or in the stomach. Antioxidants from botanicals are attracting attention, but one of the most important antioxidants, vitamin C, warrants special attention because it is not heat-stable during baking. Heat-resistant microencapsulated vitamin C is readily incorporated into grain meals or flakes and applied to the tops of products after baking. Practical factors The content of a premix depends on several practical considerations, the first being the target set by the nutritional label. “Next, formulators need to know all ingredients going into the product so they can calculate the nutritional contribution of each. “Finally, they need to know the processing parameters such as dough pH, baking time and temperature and shelf life considerations so they can account for processing losses.” Evaluation of the other ingredients in the formula is also necessary to avoid

unwanted interactions, and to select the right raw material compounds. Such considerations may limit use of some nutrients. “Magnesium, zinc, selenium and other trace minerals are generally not used in bakery fortifications because firstly, they can affect fermentation and finished product colour. Secondly, they are not well understood or demanded by the consumer. Where the finished product will be sold is another factor. Here cost enters the picture, especially when the baker expects to charge a premium price for a nutrientenhanced item. “The consumer tends to look for the better-for-you products in mainstream grocery stores but seeks value products at the dollar stores. Fortification math is based on serving size rather than flour, the basis for all other ingredient measurements. Nutrition is also calculated in metric terms, which is sometimes a shift from the norm for some bakers. Formulators can accurately hit targets from a mathematical stand point but an assay of the finished product after baking and at the end of shelf life is the gold standard. If the nutrients present at that time are outside the product’s specifications, it is an easy matter to make

HEALTHY & TASTY

macronutrient fiber is a natural focus. A claim with whole grain ingredients will be reflected more in the fiber content rather than the micronutrient content. Different rules apply for labelling claims for inherent nutrients than added nutrients, so this must also be considered by the marketer. Interest in added nutrition tends to be more condition-specific than ever before. One can see more requests related to specific health conditions such as heart and bone health as well as weight loss. Items being fortified run the gamut of foods, including grain-based products. Because consumers tend to view sports and nutrition bars as a way to fill nutritional gaps, these products make appealing vehicles for added nutrients. Flavonoids are picking up pace, especially in the bar category. Examples include sports bars that tout muscle restoration and cereal bars that boast immunity support for kids. Of course, ready-to-eat cereals have long gone in for added vitamins and minerals. “Basically, any product can be vitaminenriched — be it cake, cake filling, chocolate, cookies, snacks, cereals or similar”.

HEALTHY & TASTY

a knowledgeable correction. In addition to sharp pencils and accurate spreadsheets, food companies considering fortification need to know the rules and regulations. For a company without regulatory support staff, use of a consultant is prudent to help design claims or choose ingredients that are Generally Recognized As Safe for the intended use. It is important to consult with expert organizations such as AIB International not only for “guidance and support in labelling but also in use of ingredients including micronutrients and nutraceuticals”. Suppliers can assist with calculating overages to achieve the final label claim and advise about processing, handling and storing of the finished product as well as the premix. o matter what, due diligence is required on the part of the manufacturer or marketer because they are ultimately responsible for achieving the final label claim until last day of purchase for their product. With consumers wanting better nutritional choices, the baking and snack industries have great opportunities to profit from product improvements. “Producers of even the most iconic brands may want to consider health claims - “Fortification for better health is where the action is.” Indian Market share The market share of organised line production is about 20-25%, which is growing. This offers a plethora of opportunities for the technology providers in the country. Bakery units are unevenly spread in all major states of India. The bakery units are mainly concentrated in Maharashtra, West Bengal, Andhra Pradesh, Karnataka and Uttar Pradesh. Industrially advanced states like Maharashtra and West Bengal have large number of bakery units. In the organised bakery sector, more and more ingredients and finished products are processed using large machines with computer-controlled systems giving uniformity in product quality and resulting in lesser wastage. An increasing number of bread improvers are already offered as oil-based and water-based ingredients, so that they can be processed automatically. This is one reason why over the last two-three years, developed bakeries have replaced margarine (solid fat) with liquid oils for

certain products (in the production of toasted breads, for example). The shift Till the last decade, bakery industry’s development was slow due to the lack of skilled manpower & technology, poor quality ingredients, outdated baking technology, and deprived competition, whereas the early 21st century has proved to be a landmark for the industry. Throughout this decade we have seen a colossal shift from manual production to the use of automation. Setting up a bakery business might look costlier but in the long-term it benefits not only financially, but also in providing job opportunities to many and develops the consumption habits of the vicinity. The bakery sector offers returns of 300 times if one can run their business tactfully. The trend in traditional equipment is witnessing a deep decline as compared to new kinds of equipment with high speed production capacity are being used today in modern baking units. This equipment produces better quality and quantity within a shorter duration of time; for example, deck and reel ovens are being replaced with rotary rack ovens, which are economical in fuel consumption and easy to operate thereby making it convenient for them to be operated by semi-skilled workforce. Similarly traditional mixer-blenders are being replaced with spiral or high-speed mixers giving better emulsification quality and thereby saving time. Equipment is available easily at an affordable price with usage of lesser power or fuel thereby making it cost-effective. Various types of tabletop mixers with state-of-theart technology are being used for production of cakes and biscuits. New technology, superior equipment and better quality of ingredients require specially trained skilled labour well-versed

with the latest technology. Specialised manpower training should be a mandate and available at the workplace. IBCA provides 13 different short-term and long-term courses in baking and baking technology. Further, new methods of continuous kneading are logical for line production. Continuous kneading is mostly applied in production lines with a high output of a restricted number of products (deepfrozen products, for example). The traditional tunnel oven also remains the standard for industrial line production whereas multi-level ovens based on thermo-oil are winning market share in medium-sized bakeries with restricted space and a large range of products. Baking used to be done by bakers using individual raw materials like flour, water, sugar, eggs, fat, salt and other minor ingredients to enhance products. Although baked products stay much longer than most of the other cooked foods, there are problems one faces time and again. Today as a commercial baker, one needs to develop more variants of products, consistently at the least possible time and achieve profit. The problem is solved by large commercial companies offering pre-blended mixes like bread, cakes, cupcakes, doughnut, creams, frosting, filling, and toppings. These premixes cover a variety of products, help in reducing labour time, result in lower storage, lower inventory, more variants, easy working, consistent quality and reduction of specialised manpower.

Oil & Food Journal Vol. 08, Issue 10, August 2013

NEW TRENDS

GOING NUTS OVER DOUGHNUTS By: Basma Husain

he bakery industry in India is pegged at Rs 3,000 crore but with category products growing at 40 per cent year on year, it is inevitable for products like doughnuts to assume substantial share within the urban space in the coming years. The doughnut market was growing at 20% per year and the growth rate was expected to double in a few years. The reason for the latent demand for doughnuts is the sweet tooth of Indians, surging disposable incomes and their exposure to western snacks. The reason for the latent demand for doughnuts is the sweet tooth of Indians, surging disposable incomes and their exposure to western snacks,” The humble looking ring-shaped fried cake or the doughnut, which till now was one of the least fancy items in a patisserie, has found its own special place in the Indian confectionery market. The recent launch of popular US based chain Oil & Food Journal Vol. 08, Issue 10, August 2013

Dunkin’ Donuts in India has turned the spotlight on the gooey fritter. Moreover, its entry has brought intense competition for Singapore based Mad over Donuts (MOD), India’s first doughnut chain, set up in 2008. MOD until now had a fairly monopolistic status because except bakeries and patisseries, there were very few exclusive doughnut brands in India. Doughnuts moderate pricing is a draw. Unlike the costly pizzas and burgers, a doughnut is priced at R30-50. But Like pizzas and burgers, the donut could also be going desi to woo Indian taste buds Donut Baker and SH Donut Empire have also drawn up aggressive plans, while Singapore-based Donut Factory is planning a re-launch. But the biggest brand challenge to them all could come from US-based Krispy Kreme, which flagged off India plans barely a week after Dunkin’ Donuts set up shop.

Coffee and doughnuts as a category has huge potential in India and the market is expected to grow quickly over the next few years. Doughing in a different way Though both Dunkin’ Donuts and MOD offer classic, savoury and fruit flavoured doughnuts, have approximately the same number of doughnuts in their range, and are also similarly priced; the two are positioned differently. While MOD claims to cater to all age groups across categories, Dunkin Donuts is positioning itself as a ‘hang out’ zone for the urban young. In terms of the menus too they differ widely. With only doughnuts and coffee in their product portfolio, MOD has maintained its focus largely on its eggless fried doughnuts. With ‘Love at First Bite’ as its tagline, it has positioned itself as a fun brand and involves consumers in experiencing the cooking process with its live kitchen concept. 15

NEW TRENDS The more the merrier The positioning of Dunkin’ Donuts, on the other hand, is that of an all day food café. The menu consists of a whole range of beverages and sandwiches besides doughnuts. Dunkin’ Donuts is known for its donuts for sure, but is also about coffee, sandwiches, all day snacks and other beverages. The brand name in India has the sign of “Dunkin’ Donuts & More” to signify our wide product range and the unique experiences that our restaurants offer. In addition, there is a chilled out, modern and relaxed environment. And the Indian consumers are loving the format and product offering. To bring the brand to the Indian shores, the international baked goods and coffee retailer has entered into an alliance with the fast-food operator Jubilant FoodWorks, which runs Domino’s Pizza chain in India. With a broader product portfolio, Dunkin’ Donuts seeks to fill the vacuum space in between the QSRs, which are transactional in nature, and cafes, which offer an experience but not necessarily many food options. It is directly competing 16

with another famous international coffee chain, the Starbucks, which has just entered India. Doughnuts can give you a point of entry but if given a choice, Indian consumers will move back to staple food options. An esoteric, niche market loses it steam after some time. So this strategy will give them a wider fare without losing its basic appeal. While this strategy will give an edge to the brand, consumer’s choice will be the ultimate deciding factor. The craving by frequent travellers to consume international brands will work in its favour. MOD, however, doesn’t perceive this as a looming threat. Their focus remains on doughnuts and providing items that compliment the product like juices, bubble tea and cup cakes. Touch of India Doughnuts are an international offering and to make it suitable for the Indian palette and have a wider consumer base extending across all genres, both brands have localised several products in their range. Dunkin’ Donuts has focussed

on palette localisation as opposed to concept localisation and most of the fillings, spices, and proteins used in their products match the Indian taste buds. The beverages include an alphonso mango milkshake and a litchi milkshake, especially introduced for India. In addition, while most of their doughnuts are the same as the international range, mango and roasted coconut are the two new flavours included in the Indian menu. Interestingly, the two brands also offer almost their entire range of doughnuts as eggless to have a wider appeal. Commenting on the localisation in the MOD menu, Tarak Bhattacharya, COO, MOD, say that they have regular, seasonal flavour festivals designed especially for the local taste palette. These are launched once in five weeks and are a treat to one and all. One of our festivals was the Savoury Donut launch. They were widely relished and accepted; in fact they few of them with salsa sauce, cheese, pesto are on our permanent menu. Are Indian Mad over doughnuts yet? Both chains have come up with innovative Oil & Food Journal Vol. 08, Issue 10, August 2013

Oil & Food Journal Vol. 08, Issue 10, August 2013

enough space to grow and add, hence the entry of new players in the organised market is seen to contribute and grow the market, then eat away the share of the existing. The brands basis price points will have their own patrons and segments to cater. The consumers will benefit and so will the trade. This may pose win-win situation for both, though the margins for the smaller brands will receive a hit but volumes will drive the growth and have a significant positive impact on the bottom line. The evolution of all the three categories the international brand operates in, namely beverages, sandwiches, and doughnuts is still in its early stages and competition will only help it to grow and tap the potential in India. Pricing impasse Many feel the product is priced in the higher range, which makes it a niche food category catering to only the urban affluent class. For instance, a single doughnut at Dunkin’ and MOD is pegged at Rs45 and Rs 50, respectively. At present, doughnuts are projected as a premium product that is consumed abroad and the pricing is on the higher side because of the same reason. The price will have to stabilise over time once it gets more exposed and if it becomes a deterrent.. But at the same this category product is surely targeted at the upper segments of the society, later than sooner should price be the selling proposition. The people no more are hesitant to shell out a 100 rupee note for a cup of coffee and there is no reason that the price factor would dissuade a real connoisseur. The product

line is not targeted at the base of the pyramid and is going to stay the same for some years. Think of how Pizza entered India and now is an omnipresent offering, in all versions and at all price points. To lower costs, Dunkin’ Donuts is in fact sourcing most of the ingredients locally. A lot of their initial investment was made to overcome the existing backend challenges in India by removing such challenges; many brands are being able to provide a value proposition to Indian consumers.

NEW TRENDS

strategies to capture a larger share of the pie but has the size of the pie grown over the years? Has this sweet dessert found acceptance among Indians or is it still the indulgent food of a select few? Doughnuts are a relatively new food category in India. Doughnuts are a new concept in India. Its primary customers are the affluent people who have tried and liked the product in their travels abroad and are happy to satisfy their indulgence back home. The customer base is gradually increasing through word of mouth. However, there is some reservations about the likely time in the day that these doughnuts are to be consumed, considering they are by and large a breakfast meal in the West. On the other hand, optimistically some feel that in certain sections, doughnuts may well replace the traditional Indian snack – samosa. Snacking is at an all-time high. Today’s young urban generation is always in a mood to experiment. Donuts is increasing finding acceptance in India, currently the product is consumed by the upwardly mobile, but with youngsters ever wanting to try new things the phenomenon may take less time to become a mass consumption item. With increase in vendors selling coffee and snacks on the go, products like pastries, donuts, cookies become side items to be enjoyed with beverage of the choice.. Both the players and experts therefore agree that the primary motive is to popularise the food in India and enhance the consumer base and that more players will only add to the growth of the category. The experts in the industry believe there is

Sweet temptation According to inputs from Market Xcel, the bakery industry in India is pegged at Rs 3,000 crore and though the current size of such products may be negligible, but with category products growing at 40 per cent year on year, it is inevitable for such products to assume substantial share within the urban space in the coming years. Mad Over Donuts, which boasts of 3, 30,000 fans on its facebook page, recently opened its first store in Bangalore. It currently operates 34 stores across India in Delhi/NCR, Pune, Mumbai, and Bangalore and targets to reach 100 stores by 2013. Similarly, with an intended investment of 12 to 13 crores this fiscal year, Dunkin Donuts has huge expansion plans for India. In their first year, they plan to open ten company owned stores in Delhi/NCR and 80 to 100 stores across India in the next five years. If the expansion plans of the two brands and their road map for India is anything to go by, doughnuts are clearly a profitable food category fast gaining ground in India.

CHANGING SCENARIO

Eleven trends shaping flexible packaging

Trends often come and go before you notice them. Flexible packaging trends seem to have a longer life span than most, signaling that the format is here to stay. Here are some recent and developing trends weâ&#x20AC;&#x2122;re monitoring.

Trends often come and go before you notice them. Flexible packaging trends seem to have a longer life span than most, signaling that the format is here to stay. More easy-open, easy-reclose options A much wider range of opening treatments, fitments, and closures is available today than ever before, including linear tear characteristics, reclosable zippers that donâ&#x20AC;&#x2122;t require any tearing of the pouch header to open, and screw-on spouts for liquid pouches. Machinery has advanced, too, with increased ability to apply these features in-line during filling and sealing with minimal downtime issues. Clear high-barrier films A new generation of clear films and coatings is beginning to approach the barrier properties of foil and metalized films. This provides new opportunities to showcase appetizing products while avoiding the flex-cracking problems 18

associated with foil and some older coating technologies. These structures also offer the potential for microwavecompatible pouches. Penetration into entirely new categories Flexible packaging tends to sweep through entire product categories, though admittedly over a period of years. Classic examples include tuna fish and pet food, where retort pouches are now common after decades of can dominance. More recently baby food retort pouches (and thermoformed trays) are replacing glass jars. Flexibles are also being used for home and garden supplies such as fertilizers, where resealability is a key feature.

A quick look ahead Now that ketchup in flexible pouches is no longer a novelty, other viscous condiments that can be more efficiently evacuated from a pouch are a prime prospect. Test market successes in Western and Eastern Europe, Asia, and Latin America will tell the early tale. Health and beauty products, such as shampoo and liquid soaps, might also be ripe for conversion. Further expansion in soups, stocks, and canned fruit is likely as well. The slow roll of the cereal aisle While flexible packaging has made inroads at both the high end (think granola) and low end (value cereals), experts agree that cereal makers simply have too much invested in existing bag-and-box Oil & Food Journal Vol. 08, Issue 10, August 2013

More layers in coextrusion Though it sounds counterintuitive, the addition of layers into a flexible packaging structure can actually lead to improvements in economics and functionality. How? It allows for more precise control of the layers. Three- and five-layer film coextrusion manufacturing lines are limited by the size of the extruders and the design of the dies. More converters are moving to seven- and nine-layer coextrusion lines that provide more flexibility for desired functionality, thickness, and cost without over-engineering the structure. One technique is to use less-expensive resins as bulking layers. Another is to split the barrier layer into two thinner layers, with one serving as a “backup” in case pinhole breeches the other. This approach also multiplies the number of material interfaces a permeate must cross, further reducing permeation rates. Several technologies for splitting barrier materials into many layers are being introduced, with data showing more than linear improvements in barrier properties. Shaped flexible packaging The current generation of form/fill/seal packaging can produce more bag shapes and styles than ever. That’s important for consumer packaged goods companies hungry for new shapes that stand out on the shelf. Shaped pouches that cut a mostly two-dimensional, curvy shape have been out for years, though mostly in other countries. Machinery manufacturers are working on efficient equipment for creating pouches with a conical or threedimensional shape. A challenge here is to hold down the design waste inherent in more complex profiles. Oil & Food Journal Vol. 08, Issue 10, August 2013

More retortable pouches A retort package is “cooked” after it is filled at high-enough temperatures long enough to kill bacteria and microorganisms that can spoil food. Several factors are driving the growth of retortable flexible packaging. They are easier to open than cans, weigh much less, and can have a smaller environmental impact versus metal cans and glass jars. Additionally, pouches can minimize loss from denting or breakage and enable package innovations such as cooking capability. And then there is the taste. Many believe the food from retortable pouches tastes

better because of less abusive sterilization heating cycles. The flat geometry of the flexible package means that food closest to the surface doesn’t need to be heated for as long or at as high a temperature before the food in the center has received the proper time and temperature exposure to ensure sterility. Pouches’ wide impact Because pouch structures can be customized to meet a wide range of barrier requirements, a host of new product applications is emerging: liquid, viscous, powdered, granulated,

and particulate. This growth will cross multiple markets, including food and beverage, cosmetics, healthcare, pet foods, automotive, pharmaceutical, and agricultural. While pouch-filling speeds are not yet up to par with those of many conventional container types, this gap is closing, particularly in the dry product arena.

CHANGING SCENARIO

equipment to expect widespread change anytime soon. Replacement is further complicated given the predominance of recycled paperboard cartons made from renewable resources in this application. Just because a package converts to flexible doesn’t mean consumers in a given country—especially the U.S.—will accept it. The new global perspective means packaging structures or formats— including flexible innovations—originate anywhere in the world.

Sustainable packaging is taking on new forms. Many people play up the recyclability aspect of sustainability as it relates to packaging at the exclusion of the front end of a package’s life cycle. The carbon footprint of various packaging types has to consider many factors. For example, pouches offer tremendous energy savings both in their production and transport. Comparing rigid containers versus pouches, you can ship one truckload of flat pouches that have the equivalent product-holding capacity of upwards of 15 to 25 truckloads of empty rigid containers. Packagers can also save hundreds of thousands of dollars in packaging material costs and secondary packaging operations systems due to simplifications of packaging systems, such as the elimination of labeling, capping, etc. Waste-to-Energy is coming of age. Following a successful track record in European and Asian countries, Waste-to-Energy, or WTE, is becoming a more viable end-oflife option for flexible packaging materials in North America. Advances in municipal incinerator technology have tackled issues related to harmful emissions, increasing the likelihood that U.S. companies will support efforts to turn waste into electricity, synthetic gas, fuels, and recycled materials. WTE can reduce air emissions, landfill loads, energy usage, and costs. Also, by reducing municipal solid waste and generating energy that can be sold back to the local grid, organizations can help reduce energy costs community-wide. This, in turn, may feed into larger goals such as compliance with corporate social responsibility initiatives.

FOOD SAFETY

IS YOUR PLANT GHP COMPLIANT..? 12 KEYS TO COMPLY…

ood safety is a global concern. Not only because of the continuing importance for public health, but also because of its impact on international trade. Effective Food Safety Systems shall therefore manage and ensure the safety and suitability of foodstuff. A Food Safety Management System (FSMS) is a network of interrelated elements that combine to ensure that food does not cause adverse human health effects. These elements include programs, plans, policies, procedures, practices, processes, goals, objectives, methods, controls, roles, responsibilities, relationships, documents, records, and resources. Section 16(2)(c), of the FSS Act, 2006 provides for the mechanism for accreditation of certification bodies for FSMS and Section 44 provides for recognition of organization/agency for food safety audit and checking compliance with FSMS required under the Act or the rules and regulations made thereunder. The Key elements of any FSMS are: I. Good Hygiene Practices/Pre Requisite Program II. Hazard Analysis & Critical Control Point (HACCP) III. Management Element/System IV. Statutory and regulatory requirements V. Communication Internationally and even in India, there are many Food Safety Certifications (HACCP, ISO 22000:2005, FSSC 22000:2011 and many more) which intend to & verify the compliance of these requirements. However, under current Indian regulation defined by the FSS Act 2006, FSMS means the adoption of Good Manufacturing Practices(GMP), Good Hygienic Practices(GHP), HACCP and such other practices for the food business as specified by regulation,. The requirements for FSMS are as defined under Schedule IV. This comprises of 20

the basic-compulsory requirements for ensuring safety of the food manufactured at any premise. It consist of five parts as General Hygienic and Sanitary Practices to be followed by Part I Petty Food Business Operators (FBO) applying for Registration. Part II All Food Business Operators applying for License. Specific Hygienic and Sanitary Practices to be followed by Food Business Operators engaged in Part III manufacture, processing, storing and selling of milk and milk products. Part IV manufacture, processing, storing and selling of meat and meat products. Part V catering/ food service establishments. An ideal FSMS in an enterprise should be one that: • Meets the overall intentions and direction of food safety policy and achieve the measurable objectives. • Meets performance of “effectiveness” (extent & outcome of implementation of planned activities) and “efficiency” (relationship between the results achieved and the resources needed). • Applies proven management principles, which aims at continually improving performance by focusing on customers while addressing the needs of all other stakeholders. FSMS Program has many aspects which can be covered in the following documents 1. The FSMS Plan 2. Flow chart of for the Process 3. A self-inspection checklist

It is the responsibility of FBOs to ensure adherence to necessary requirements as mentioned in the FSMS plan considering the product characteristics & food safety issues. The establishment where food is being handled, processed, manufactured, packed, stored, and distributed by the food business operator and the persons handling them should conform to the sanitary and hygienic requirement, food safety measures and other standards as specified below. 1. Location and Surroundings It is necessary that, the food establishment shall be located away from environmental pollution and industrial activities that produce disagreeable or obnoxious odour & pollutants which pose a threat of contaminating food areas that are prone to infestations of pests or where wastes, either solid or liquid, cannot be removed effectively. Appropriate measures should be taken to protect the manufacturing area from the hazards of other environment polluting industry located nearby. The manufacturing premise should not have direct access to any residential area. 2. Layout and Design It is important to carry food preparation/ manufacturing processes separately to avoid cross-contamination from the operations like goods receiving, preprocessing. Floors, ceilings, walls must be maintained in a sound condition to minimize the Oil & Food Journal Vol. 08, Issue 10, August 2013

3. Equipment & Containers All Equipment and containers that come in contact with food shall be inert, easy to clean and /or disinfect (other than disposable) and made of corrosion free materials. Equipment and utensils used in the preparation of food shall be kept well maintained, clean and sanitized. 4. Facilities Water: Only potable water shall be used for washing of raw material, food processing and preparation of ice & steam which directly comes in contact with food and for cleaning of equipments which are directly in contact with food material. Periodic cleaning of water storage tanks shall be carried out & recorded. Non potable water can be used for cleaning of equipment which does not come into direct contact with food. Pipes for potable and non potable water shall be clearly distinguished. Cleaning: Adequate facilities for cleaning, disinfecting of utensils and equipments shall be provided with an adequate supply of hot and cold water if required. Drainage and waste disposal: All waste materials shall be removed and clean periodically from all the areas where food is handled to avoid building up. All refusal and waste shall be collected in covered bins which shall be emptied and Oil & Food Journal Vol. 08, Issue 10, August 2013

washed daily with a disinfectant and dried before next use. Waste storage shall be located so as to not contaminate the food process. The disposal of sewage and effluents (solid/ liquid/gas) shall be in conformity with requirements of Factory / Environment Pollution Control Board. Drainage, waste disposal systems and facilities shall be designed and constructed, so that the risk of contaminating food or the potable water supply is eliminated. Personnel facilities and toilets: Personnel facilities shall include 1. Wash basins with supply of hot and/ or cold water for proper washing and drying of hands before touching food materials, 2. Separate lavatories for males and females, 3. Changing facilities, rest and refreshment rooms (separate from food process and service areas) for personnel which do not open directly into food processing, handling or storage areas. A display board mentioning do’s & don’ts for the workers shall be put up at a prominent place in the premise in English or in local language. Air quality and ventilation: Ventilation systems natural and /or mechanical including air filters, exhaust fans shall be designed and constructed so that air does not flow from contaminated areas to clean areas. Adequate lighting: Natural/artificial lighting shall be provided to the food establishment, to enable the employees/workers to operate in a hygienic manner. Lighting fixtures must be protected to avoid food contamination by breakages of electrical fittings. 5. Food Operations and Controls Procurement and storage of raw materials: All raw materials, food additives and ingredients shall be free from any form of contamination and conforms to all the Regulations and standards laid down under Food Safety and Standard Act. Packaged raw material must be checked for quality, ‘expiry date’/ ‘best before’/ ‘use by’ date, packaging integrity and storage conditions and cleaned physically before processing.

Raw materials should be purchased in quantities as per the storage/ preservation capacity. & their records along with the source of procurement shall be maintained. Food storage facilities shall be: • Designed and constructed effectively to protect from contamination. • Permit adequate maintenance and cleaning, to avoid pest access and accumulation. Containers made of non-toxic materials shall be provided for storage of raw materials. Storage conditions like cold store facility shall be provided according to the type and requirement. The food materials shall be stored on racks/pallets well above the floor level and away from the wall to facilitate effective cleaning and prevent harbouring of any pests, insects or rodents. Segregation shall be provided for the storage of raw, processed, rejected, recalled materials or products. Raw materials and processed food shall be stored in separate areas from printed packaging materials, stationary, hardware and cleaning materials/chemicals. Storage of raw materials, ingredients, work-in-progress and processed/cooked or packaged food products shall be subject to FIFO (First in, First Out), FEFO (First Expire First Out) stock rotation system as applicable. Food Processing, Packaging and Distribution/Service: The time and temperature are to be controlled effectively at all stages of the food chain like receiving, processing, cooking, cooling, storage, packaging, distribution and food service up to the consumer as it is critical to the safety and suitability of food. Care should be taken whenever frozen food/raw materials are being used/ handled/transported, to avoid storing of defrosted / thawed material after opening for future use. Proper outlets for smoke/steam like chimneys, exhaust fan etc. to be provided where cooking is done on open fire. It is essential to prevent contamination & damage of food products and shall accommodate required labeling as laid down under the FSS Act & Regulations. Food grade packaging materials are to be used for primary packaging. Standards mentioned under the FSS regulation to be followed for packaging materials like

FOOD SAFETY

accumulation of dirt, condensation and growth of undesirable moulds. Doors shall be made of smooth and nonabsorbent surfaces and provided with auto closure. Adequate control measures should be provided on the opening like windows to prevent insects, flies and rodents from entering the processing area. Windows, doors & all other openings to outside environment shall be well screened with wire-mesh or insect proof screen & the doors be fitted with automatic closing springs. The mesh or the screen should be of such type which can be easily removed for cleaning. A person shall not manufacture, store or expose for sale or permit the sale of any article of food in any premises not effectively separated from any privy, urinal, sullage, drain or place of storage of foul and waste matter.

FOOD SAFETY

aluminum plastic and tin. Non-toxic packaging materials or gases shall be used which do not pose a threat to the safety and suitability of food. Food Distribution / Service All critical links in the supply chain need to be identified and minimize to avoid food spoilage during transportation. The conveyances and containers shall be designed, constructed and maintained to effectively maintain the required conditions necessary to protect food. Vehicles and containers meant for carrying foodstuff shall be effectively cleaned and disinfected and not used for other materials. 6. Management and Supervision A detailed Standard Operating Procedure (SOP) for the processing, packing, dispatch and storage should be developed for proper management to help in identifying any problem & exact point, so that damage control would be faster. The Food Business shall ensure that technical managers and supervisors have appropriate qualifications, knowledge and skills on food hygiene principles and practices to be able to ensure food safety, judge food hazards, take appropriate preventive and corrective action, and ensure effective monitoring and supervision. 7. Food Testing Facilities A well equipped, laboratory for testing of food materials/food for physical, microbiological and chemical analysis in accordance with the specification/ standards laid down under the rules and regulations shall be in place inside the premise (or to be done through an accredited lab notified by FSSAI) for regular/periodic testing and when ever required or in case of complaints. In case of any possible contamination, food materials shall be tested before dispatch from the factory. 8. Audit, Documentation and Records A periodic audit of the whole system according to the SOP shall be done to find out any fault/gap in the GMP/GHP system. Appropriate records of food processing, production, storage, distribution, service, food quality, laboratory test results,

cleaning and sanitation, pest control and product recall shall be kept and retained for a period of one year or the shelf-life of the product, whichever is more. 9. Sanitation and Maintenance of Establishment Premises Cleaning and Maintenance A cleaning and sanitation program shall be drawn up and observed and the record thereof shall be properly maintained. Equipments used in manufacturing shall be cleaned and sterilized at set frequencies. Cleaning chemicals shall be handled and used carefully in accordance with the instructions of the manufacturer and stored separately away from food materials, in clearly identified containers. Pest Control Systems Food establishment, including equipment and building shall be kept in good repair to prevent pest access and to eliminate potential breeding sites. Holes, drains and other places where pests are likely to gain access shall be kept in sealed condition or fitted with mesh/grills or any other suitable means as required and animals, birds and pets shall not be allowed to enter into the premises. Food materials shall be stored in pestproof containers stacked above the ground and away from walls. 10. Personal Hygiene Personnel known to be suffering from disease or illness shall not be allowed to enter into any food handling area. The affected person, shall immediately report illness/symptoms of illness to the management. Medical examination of a food handler shall be carried out apart from the periodic checkups. Food handlers/employees of the establishment shall be medically examined once in a year to ensure they are free from any infectious, contagious and other communicable diseases, which shall be recorded & these examinations to be signed by a registered medical practitioner. The factory staff shall be compulsorily inoculated against the enteric group of diseases as per recommended schedule of the vaccine and a record shall be kept. In case of an epidemic, all workers are to be vaccinated irrespective of the scheduled vaccination.

Food handlers shall maintain a high degree of personal cleanliness by using adequate and suitable clean protective clothing & trim their nails & hair periodically. Food handlers shall refrain from smoking, spitting, chewing, sneezing or coughing over any food whether protected/ unprotected and eating in food preparation & service areas. Visitors should not be allowed inside the food handling areas. 11. Product Information and Consumer Awareness All packaged food products shall be labeled as per provisions of Food Safety and Standards Act, 2006 and Regulations, so that adequate and accessible information is available to each person in the food chain to handle, store, process, prepare and display the food products safely and correctly and for tracing the product in case of recall. 12. Training A very important aspect of the food safety & shall be taken very seriously by the FBO. All food handlers shall be made aware of their roles and responsibilities in protecting food from contamination or deterioration, have knowledge and skills relevant to food processing/ manufacturing, packing, storing and serving to ensure quality & food safety. This can be ensured by training & periodic assessments of the effectiveness of training. Training programmes shall be routinely reviewed and updated wherever necessary. A Food Safety Plan shall be prepared for each establishment to ensure the compliance of above requirements. Ideal methodology to involve an expert for the GAP assessment of the facility & then addressing the necessary improvements in the FSMS plan & implementing it in stipulated time period to avoid legal violation of non compliance to GMP/GHP requirements as per Schedule IV. Author is Head-Food Safety at Qsafe Consultants (India). He is lead auditor & trainer in food safety. He is empanelled with FSSAI & State FDAs as a trainer & conducted more than 500 training sessions across India. For any query related to food safety or FSSR, he can be contacted on 07666578715 or sbi@qsafeindia.com Oil & Food Journal Vol. 08, Issue 10, August 2013

QSAFE CONSULTANTS (INDIA)

Our Services : Consultancy for International Certifications covering HACCP, FSSC 22000:2011, ISO 22000:2005, BRC-Global Food, IFS-Food etc. Regulatory Guidance - Compliance to Food Safety & Standards Act 2006, Rules & Regulations 2011 like Product Approval, Schedule-4 (GMP, GHP) Compliance, Labeling Verification. Trainings Awareness training, Implementation Training, Internal Auditor Training in Good Manufacturing Practices (GMP), Good Hygiene Practices (GHP) & various international certifications.

Mr. Sanjay Indani Head-Food Safety NBQP Approved Consultant Internal Audits & Supplier Audits. Mobile: +91 76665 78715 ; Email: sbi@qsafeindia.com

QSAFE CONSULTANTS (INDIA) (Division of ITENG ENGINEERING PRIVATE LIMITED)

402, Embassy Chambers, Plot No. 5, Road No. 3, Khar (W), Mumbai â&#x20AC;&#x201C; 400 052

Tel: +91-22-2648 9260 Fax: +91-22-2648 9270 E mail:info@qsafeindia.com Website: www.qsafeindia.com

Pan India presence- New Delhi, Ahmedabad, Chennai, Pune, Bangalore, Vizag, Cochin.

Oil & Food Journal Vol. 08, Issue 10, August 2013

MUSTARD AGENDA

MUSTARD OIL CAN BE BACKBONE OF INDIAN EDIBLE OIL ECONOMY India being the 3rd largest vegetable oil economy in the world, ranks 2nd in the production of Mustard Oil. Mustard Oil has been the pre-eminent culinary fat for over 3000 years for Indians, West Asians and China. Mustard oil is being used by one of the largest past of the country and Mustard Research and Promotion Consortium (MRPC) has been one active body working for the benefits of this oil and related communities. Dr Pragya Gupta is the Assistant Director and senior scientist with MRPC, in the below interview she has provided us many eye-opener information which no media of such kind has ever covered.

What is MRPC? Mustard Research and Promotion Consortium (MRPC) was established in May, 1999 to highlight the mustard facts about nutrition and health benefits. It is a charitable, non-governmental organization and is registered under the Societies Registration Act XXI of 1860. MRPC received the status of R&D organization through recognition under Scientific and Industrial Research Organization (SIRO) by Ministry of Science and Technology, Government of India as a Research and Development Organization. Through R&D it was meant to achieve three fold objectives for the Indian edible oil mustard crop. The three fold objectives are: • To Work for farmers – Increase area of cultivation and productivity • To Work for Consumers – Give awareness about goodness of mustard oil. • To Work for Industry – Helps in Technology Up gradation MRPC aims to improve and increase yields of the Indian mustard crop in order to compete with international productivity standards and also to strengthen and enhance the Indian mustard Industry’s 24

ability to profitably produce oil and other value added products that offer superior value to consumers on one side and farmers on the other side. MRPC function under the stewardship of prominent scientists, nutritionists, oil technologists and specialists from the mustard industry. What have been your chievements so far? MRPC has several achievements in terms of product development, value additions on mustard byproducts and technology development to benefit the mustard crop industry. Product development 1. Low absorptive mustard oil 2. Trans fat free low calorie structured Lipid Value addition by using byproducts of mustard oil industry 1. Mustard based surface cleaner 2. Mustard based mosquito repellent coil Technology developed for 1. Development of bio-technological method for extraction of oil, to enhance oil quality. 2. Isolation of bio active compound of pharmaceutical & FMCG uses.

What kind of research and development you are doing with regard to better resistant and yield verities? Since its inception, MRPC has been involved in agriculture extension related activities. Its main emphasis has been to translate research result into technology and reach the end user directly. MRPC has completed various projects with Technology mission on Oilseeds, Pulses & Maize (TMOP); Directorate of vegetable, vanaspati oil and fat; National Dairy Development Board (NDDB); Department of Biotechnology (DBT) and farmers. MRPC’s research activity is not just restricted to taking technology to field but working towards finding solutions; integrating technology developed by various R&D projects. MRPC is also implementing a project supported by DBT on vermintechnology application in mustard cultivation through organic approach and helping the farming in the villages through training and demonstrations. The successful outcome of this project will help extending the benefits to the farmers and SHGs in creating profitable livelihood options. Oil & Food Journal Vol. 08, Issue 10, August 2013

How do you look at the mustard farming status in India? Do you think farmers are switching from mustard to more profitable crops? The mustard cultivation area in the world was 33.11 million hectares (m ha) in 2011-12 whereas in India it was 5.92 million hectares (m ha). Production of seeds for world was 60.66 million tonnes (m t) whereas in India it was 6.78 million tonnes (m t). Mustard seed yield of world is 1830 kg / hectares whereas in India it is 1145 kg / hectares. India accounts for 21.01% and 12.58% of total acreage and production respectively. In Rapeseed production, India ranks 3rd in the world, with market share of 11.0 percent in 2011-12. India has developed hybrid varieties which can give higher seed and oil yield– oil extraction has increased to 40% from the previous 33%. In Rapeseed production, India ranks 3rd in the world, with market share of 11.0 percent in 2011-12 India’s total production of Rapeseed was approx. 6 Million tonnes as compared with world total production of 58 Million tones. Farmers are shifting to other crops due to fewer margins and the unfavorable policies towards the mustard crop. Centre can help to strengthen the Indian mustard Industry’s by ensuring stable productivity which does not depend on cyclic patterns Oil & Food Journal Vol. 08, Issue 10, August 2013

is essential for stability of mustard seed prices. This is possible only if every effort is channelized towards keeping productivity levels either stable or with an upward trend. The oilseed farmer’s return on investment must be consistently ensured by both, the industry and the government. Inspiration must be sought from better performing countries like China, U.K. Germany, Canada etc. who have successfully raised productivity levels. For example, the govt. of Germany clearly allocates the area for mustard cultivation. The area allocated for rapeseed mustard cannot be used for any other crop or purpose. Effort should be made to declare mustard crop as a national crop by Indian government same like what Malaysian government has done for the Palm oil which despite being heart unfriendly still manages to sell much more and supports the economy of that country. What palm oil for Malaysia, same is Mustard oil for India. Are you doing some promotional campaign on the lines of Milk promotion council or Egg promotion council for the promotion of Mustard oil among masses through media? Not as yet, but MRPC is promoting about it in its humble way through word of mouth. MRPC conducts researches to enhance the post harvest output by technology upgrades. Besides this value addition in each of its photochemical is being added continuously. Isolation

of anti carcinogenic/anti cancerous bio active compound that is allylithiocynate, production of bio diesel by splitting of solvent extracted non edible portion of mustard oil. If we have access to government funds then there is enormous potential to create awareness about its benefits in nutrition and wellness. Mustard has the potential of being the national crop and saving the foreign exchange of the country. Naturally processed Indian mustard oil, because of its unique fatty acid profile, backed by a chemical free method of manufacturing, is by far the healthiest cooking oil. MRPC conducts researches in collaborations with other research organization, publications and organizes workshops to increase awareness regarding Indian Mustard Oil which is considered a very healthy product by leading cardiologists and health practitioners.

MUSTARD AGENDA

Mustard oil in India is one of the widely used edible oil but it has been noticed that usage of the same is declining, your comments? This finding seems to be incorrect as per our information. Ever since mustard oil has been perceived to be healthy oil, recommended by eminent cardiologist, its consumption has increased manifolds. It was earlier considered as a poor’s man oil but now it have found inroads to the up worldly mobile section of growing middle class. We at MRPC believe that mustard oil consumption has been growing at the rate of 20% in the north India. Mustard oil can be backbone of Indian oil economy, as it has potential to reduce the drain of valuable foreign exchange and also achieve self sufficiency in the edible oil sector. It is imperative to sensitize the masses about indigenous edible oil as it will reduce the dependence of India on edible oil imports and benefit the farmers and Indian economy at large.

Please brief us about your programs in near future? Indigenous high oil content commodity having numerous health benefits is being neglected due to myths created by imported oil promoters along with bombardment of widespread advertising. Therefore, to put the facts of mustard, MRPC has been conducting R&D in all aspects of mustard. High end research would ensure value addition of mustard, which in turn will enable the farmer and oil manufacturers to earn high remunerative prices; it will also encourage farmers to expand the overall area under mustard cultivation. In this regard, some of the future programs that MRPC roadmap includes are: 1. Innovative technology development and up gradation by scientific inputs for oil extraction 2. Isolation of valuable bioactive compound of mustard as whole and its oil 3. Product development from isolated bioactive compound of mustard, beneficial to human In the past also, MRPC has completed several projects related to mustard with the support of various government organizations.

Oil & Food Journal Vol. 08, Issue 10, August 2013

PRO AGRO

Buhler Pulse Processing solutions designed for higher yield, better quality dal and improved profitability B端hler is a specialist and technology partner for plant and equipment and related services for processing basic foods and manufacturing advanced materials. A leading supplier of Grain Milling business Buhler offers customers around the world cutting-edge process technology and innovative engineering services for processing soft wheat, durum, corn/maize, rye, oat, barley, millet/sorghum, buckwheat, soybeans, peas, and beans. This includes comprehensive total solutions as well as stand-alone machines for each process operation. In a recent interview with Product Manager Surojit Basu we explored vast line of services provided by this giant company especially to the pulses segment. Buhler is not only leading in the agro processing segment in India but globally its one of the most known brand. India being one of the largest processors of pulses in the world is hub for Buhler for RnD activities and services. Basu is informing our readers about their activities in pulses industry in the below interview.

What are the technological advances in pulses processing industry? Last decade witnessed most of the technological advancements in pulses processing. The fully automated pulses processing plant with efficient aspiration and engineering is a reality now. Once considered an unhygienic and clumsy process came forward a long way. Retail marketing and consumer awareness paved the way for the much needed premium market in pulses segment.Now the pulse processing industry is in a path of modernization, many processors understands the value of premium markets and are coming forward for an efficient and modernized pulses processing plant.

Oil & Food Journal Vol. 08, Issue 10, August 2013

NATURAL PRO AGROCLEANER

What are the solutions your company is providing for pulse hulling and how important is good quality hulling for pulses? Removing the fibrous seed coat (hull) improves the appearance, texture, quality and palatability of pulses. Hulling is the critical parameter which determines the quality, appearance and yield of dal. We have the state of the art roll machine for pulse hulling (Buhler AIHI Pulse Roll), which can be optimized to achieve the best possible hulling efficiency. The Buhler Pulse roll is designed to meet the highest quality dal with minimum powder losses. FSSA has been implemented in India and it has become mandatory for a FMCG companies to maintain best quality food grains, what are to solutions you are providing for these companies for maintain good quality & standards? FSSA consolidated many of the existing food laws, It provided a common platform for all regulatory bodies. The basic function of FSSA or any regulatory body is to ensure the safety of processed Oil & Food Journal Vol. 08, Issue 10, August 2013

food. To ensure safety a processing system should be designed for achieving it. Buhler with its expertise knowledge in food processing for over 150 years is the best partner for working towards the safe food and a safer planet. Buhler pulses processing machineries are built to ensure the best safety of your food. Buhler complete automation ensures less human intervention. Our engineering and process is designed for better hygienic and safe processing. Please give us a brief about your Optical Sorters how different they are from common Sorters available in the market? As pioneers in optical sorting we are proud to say Buhler Sortex series of optical sorters are probably the most advanced and trusted optical sorter around the globe. Buhler’s Sortex series are equipped with the latest and most advanced optical technology and electronics developed in-house at Buhler Sortex London. A substantial investment goes into R&D to develop optical sorting technology to meet the customer’s requirement of quality product by removing most subtle

and challenging defects. A highly robust machine delivering maximum throughput even at higher impurity level ensures maximum profitability for the processor. Indian food grains industry is modernizing and it looks for customized turnkey solution from a single company, do you give turnkey solutions to the pulses industry and how helpful they are for your customers? Yes we provide complete solutions for the processing plant.Buhler’s complete pulses solution comprising of cleaning, grading, drying, hulling, splitting, polishing, optical sorting systems along with engineering and project management. Buhler builds complete processing plants ranging from 28 to 250 tons per day. Buhler serves as the one point contact for all the customer needs. With the process Know How expertise Buhler can serve the customer with the proper solution at the right time. Surojit Basu (Product Manager) Pulses, Spices & Sesame T +91 020 66497777 Mob: +91 8007774835 29

Oil & Food Journal Vol. 08, Issue 10, August 2013

NEWS

Hybrid mustard can help cut edible oil import

he government should promote hybrid varieties of mustard that can boost yield by more than 10 percent and help in saving foreign currency by cutting imports of edible oil, according to Mustard Research and Promotion Consortium (MRPC). MRPC assistant director Pragya Gupta said the use of modern technology in extraction and hybrid varieties could substantially boost domestic output of mustard oil. “In view of the recent slide in the value of rupee, this is very important. We must boost mustard oil output to reduce our dependence on imported edible oil,” Gupta said. The Indian rupee has lost almost 20 percent of its value against US dollar largely due to widening current account deficit. It touched a record low of 65.56 against a dollar. Widening trade deficit due to high imports is among the important reasons behind the high current account deficit that hit a record high of nearly $90 billion in 2012-13. “Mustard oil along with other indigenous edible oil can be the backbone of Indian oil economy. Naturally processed Indian mustard oil, because of its unique fatty acid profile, backed by a chemical free method of manufacturing, is by far the healthiest cooking oil,” said Gupta. “Mustard has the potential of being the national crop and saving the valuable foreign exchange of the country,” she said.

Major edible oil refineries face duty roadblocks

ight edible oil refinery projects, including four large ones, scheduled to commence commercial production in FY14, have either deferred their plans or reduced operating capacity. Reason: unfavourable duty structures, which make the business unviable. Precisely because of this reason, investments worth Rs 147 crore are stuck in various refinery projects across India. Andhra Pradesh-based Gemini Edibles & Fats India had earlier proposed to set up a 200 tonnes a day (TPD) of refinery in Kakinada to tap north coastal districts of the Andhra Pradesh and Odisha. The project, with an investment of Rs 25 crore, has been deferred indefinitely due to an inverse duty structure in India, the importing country, as well as Indonesia, one of the world’s largest exporters. “We have been struggling to convince the government to increase import duty on refined oil (refined, bleached and de-odourised or RBD palmolein) and lower on crude oil to promote domestic refineries,” said Pradeep Chowdhry, managing director of Gemini Edibles & Fats India, a subsidiary of India’s largest edible Oil & Food Journal Vol. 08, Issue 10, August 2013

oil producerRuchi Soya Industries. In fact, the Indonesian government increased export duty on crude palm oil (CPO) from nine per cent in June to 10.5 per cent for July. The country also has a lower duty on RBD at four per cent to promote local refineries. On other hand, Malaysia has a relatively lower export duty on CPO at 4.5 per cent and RBD palmolein at ‘nil’. Malaysia and Indonesia jointly supply about 87 per cent of the world’s palm oil demand. In contrast, the Indian government narrowed the differential tax between CPO and RBD palmolein to five per cent from the earlier 7.5 per cent through a levy of 2.5 per cent import duty on CPO. For a sustainable refining business, the differential duty should be at least 12.5 per cent by taxing RBD palm olein more. The inverted tax structure in Indonesia and Malaysia, followed by the levy of 2.5 per cent import duty on CPO, made the raw material costlier than RBD olein. Consequently, refiners have evinced interest more in trading business rather than utilising their installed capacity to a maximum level. The situation has made domestic refining capacity idle. According to reports, Malaysia and Indonesia are likely to close the year with

19 million tonnes and 28.5 million tonnes of palm oil. Sluggish demand from importing countries, particularly China and India, on account of higher stock levels and currency fluctuation has led to stockpile ups in exporting countries. “Smaller players with efficient cost structures and ability to offload at much lower prices will give a tough competition to their organised sector players. Refiners are likely to run at capacity utilisation of 30-35 per cent in the near-term, compared with 50 per cent earlier. Under-absorption of fixed costs is likely to dent the overall profitability and return ratios for most players,” said Janhavi Prabhu, an analyst with India Ratings. India imports around 60 per cent of its 16.5 million tonnes of annual edible oil consumption from Malaysia and Indonesia due to stagnant domestic production of oilseeds. Data compiled by the Solvent Extractors’ Association (SEA) showed that between November 2012 and June 2013, the contribution of refined oils in overall imported vegetable oil jumped to 22 per cent at 1.54 million tonnes.

NEWS

Falling edible oil, pulse imports could save India $4 billion in deficit battle

he value of Indian imports of edible oils and pulses is set to plummet as international prices drop and domestic output climbs in the wake of heavy monsoon rains, helping save the country around $4 billion as it struggles to narrow a gaping current account deficit. That nearly equals the amount the government aims to save in its highprofile battle to restrict gold imports, a key part of its efforts to stem the deficit that has pushed the rupee to a record low and threatens higher inflation as the economy grows at its slowest pace in a decade. Lower demand from the world’s No.1 importer of pulses would pile more pressure on prices that have fallen nearly 20 percent so far this year. Edible oil prices would also be hit at a time when palm oil supplies are rising. “The demand for imported pulses is very weak. Traders are struggling to sell imported stocks despite reducing prices,” said Nitin Kalantri, a miller based in Latur in the western state of Maharashtra. Industry officials estimate India could save nearly $3 billion from imports of edible oils this year and $1 billion on pulses. In the 2012/13 financial year, which ended on March 31, India’s edible oil imports stood at a record $11.31 billion, while it spent an all-time high of $2.34 billion buying pulses overseas. GRAPHIC on India edible oil, pulses imports Above-normal rainfall since the beginning of the monsoon season on June 1 promises bumper production of edible oils and pulses, used in dishes from samosa to curries. The ingredients account for nearly two-thirds of the country’s imports of agricultural commodities. “Last year pulse imports rose due to lower production of chana,” said Kalantri, referring to a local name for chickpeas -the most popular pulse in India. “This year chana production has jumped and many importers burned their fingers 32

due to sharp drop in prices.” The price of the essential commodity fell 42 percent in a year as output jumped 15.3 percent in 2013 from a year ago to 8.88 million tonnes. The country bought 4 million tonnes of pulses in 2012/13, mainly from Canada, Myanmar and Australia. Imports of other pulses such as pigeon peas, black matpe and green gram are also set to drop, with more land being used to cultivate these crops due to the plentiful rainfall, said Vedika Narvekar, a senior analyst with Angel Commodities Broking. The area devoted to pulses stood at 9.33 million hectares as of August 15, up 25 percent from a year ago, farm ministry data showed last week. Oilseeds were cultivated on 18.34 million hectares, against 15.89 million hectares a year ago. FALLING OIL PRICES The value of Indian imports of edible oil is set to decline due to a sharp drop in prices, although quantities are likely to remain steady. Falling prices for palm oil will have a big impact as the ingredient accounts for more than 70 percent of the country’s imports of edible oil “Edible oil imports are likely to stand around $8 billion to $8.2 billion in the financial year considering the current trend,” said Nalini Rao, an analyst at India Infoline Ltd. That would be down from an estimated

$11.31 billion in 2012/13. Edible oil imports in April to June fell by nearly a quarter from a year ago $2.27 billion, commerce ministry data showed. “We started the financial year with a bumper rapeseed crop. Now output of soybeans, groundnut and other oilseeds seems good. So there will be some drop in edible oil imports in FY 14,” said a senior official with a leading edible oil company based in Indore in the central state of Madhya Pradesh. “In overseas market edible oil prices have fallen by 20 to 25 percent. That drop will be reflected in this year’s imports,” said B.V. Mehta, executive director of the Solvent Extractors’ Association of India (SEA), which maintains edible oil imports data for the marketing year running from November to October. In July India imported crude palm oil at $806 per tonne, down 20 percent from a year ago, while it paid $955 for crude soybean oil, down 24 percent from last year. India is aiming to contain its deficit at $70 billion for the fiscal year ending in March, or an estimated 3.7 percent of gross domestic product, well below the record 4.8 percent in the previous fiscal year.

Oil & Food Journal Vol. 08, Issue 10, August 2013

ookie Man has expanded its product kitty to include muffins, brownies, macaroons, doughnuts, puffs and icecream. The cookie brand also plans to sell pastries and a few other products in the next couple of months, said Anupam Saluja, CEO, Australian Foods India Pvt Ltd, which owns the Cookie Man brand. The brand currently sells around one and a half tonnes of cookies every day through 62 stores across major cities in India. Of these, 28 are company-owned outlets while the rest are franchises. Another 14 stores are due to come up in the next few months. “Our expansion will be a mixed model. At least 20 per cent of the new stores will be owned by the company,” said Saluja. Cookie Man also plans to set up shops in neighbouring countries. It recently entered Bangladesh with a franchisee store. “We are also looking to get into Sri Lanka very soon,” he said. Motivated by the lack of freshly baked branded cookie players, Cookie Man entered India in 2000. Subsequently, Paracor Capital Advisors, S.B.P. Pattabhi Rama Rao and his family members, who brought the company in, acquired the brand rights for India and the subcontinent. The Rs 15,000-crore organised biscuit market is dominated by Parle, Britannia and ITC. The market for freshly baked cookies is very small Cookie Man is the only pan-India brand. There are also some regional players, such as Karachi Bakery in Hyderabad.

Indian brand making one of world’s best selling biscuits

s the purchasing power of India’s middle classes grows, there is an increase in the number of foreign brands reaching the country’s shelves. So how are Indian brands coping with the new competition? India Business Report puts that question to some of the country’s successful companies and products, in its strand, Made in India. Parle Products claims to make the world’s biggest-selling biscuit by volume. In fact it is so popular, “Most people know the company as Parle G now - it’s that big a brand now”, says the company’s executive director Ajay Chauhan. He said the firm had managed to hold the price of their biscuits between 1996 and 2006 - but then had to raise it due to the rising cost of raw materials. However, the company went on to experience higher growth from the mid-2000s, Mr Chauhan added, which he put down to people’s having bigger disposable incomes. Oil & Food Journal Vol. 08, Issue 10, August 2013

INDIA: Britannia to build Gujarat biscuit facility

NEWS

Cookie Man eyes bigger bite of market

ndian food group Britannia Industries has confirmed plans to invest in a new biscuit facility in Gujarat in the west of the country. A spokesperson for Britannia confirmed the investment plans today (13 August). “Following the opening of its green field projects in Bihar and Orissa last year, the company will open up its new Greenfield project plant in Jhagadia in Gujarat to manufacture a variety of biscuits.” In 2011, Britannia commissioned the construction of a plant in Bihar and one in Orissa, both in the east of India. This latest investment will see the opening of the firm’s first facility in the west of the country. The spokesperson did not disclose financial details of the investment, but according to the The Economic Times, the company plans to invest around INR150m in capacity, including the new Gujarat facility in the expansion of distribution, as well as in advertising and promotions this year. Around INR50m is expected to be invested in the new plant.

Priya Biscuits to open Rs 45 cr plant

riya Biscuits, part of Priya Food Products, is planning a state-of-the-art plant at Dankuni, Hooghly, with a capital outlay of Rs 45 crore. The new plant would roll out a range of digestive biscuits under a sub brand “Priya Bite”. “We don’t want to lose focus on taste though. Consumers can’t treat biscuits as health pills. Hence we have brought about new products, which are essentially tasty with additional health ingredients,” GP Agarwal, managing director, Priya Biscuits, told. The biscuit market in India is estimated to be Rs 10,000 crore. The new plant is likely to help the brand expand its market share from 8 per cent at present to 15 per cent over the next 18 months. The company would also be adding nearly one lakh new retailers and 400 new distributors into its fold to market the new range, said Agarwal. The company has also drawn up extensive plans to strengthen the brand’s presence in overseas markets, particularly in Bangladesh, Nepal, Maldives and Sri Lanka, said Agarwal. The company’s existing manufacturing facility near Kolkata has already been upgraded to meet stringent FDA norms of the US and European market to tap the overseas markets. Meanwhile, the company has entered into exclusive agreements with the US and Australian brand owners and distribution companies like GAF Food and LLC to distribute its product in supermarkets abroad. 33

NEWS

ITC targeting Rs. 1 Lakh Crore Sales From New Fmcg Businesses

iversified conglomerate ITC Ltd is eyeing a turnover of over Rs 1lakh crore from its noncigarette FMCGbusiness by 2030, chairman YC Deveshwar said. Addressing the company’s 102nd annual general meeting, Deveshwar said ITC is on the path to become India’s largest FMCG company without taking into account its cigarette business. “This is evidently an audacious aspiration and one that may not necessarily be realised in my own lifetime. I, however, wish to place ITC firmly on the path to such accomplishments,” he said.

ITC’s non-cigarette FMCG business currently comprises of packaged food, personal care, education and stationary products, agarbaatti, safety matches and also includes its two lifestyle retail ventures Wills Lifestyle and John Players. This business had crosses Rs 7,000 crore revenue in the last fiscal, ending March 31, 2013. Deveshwar said ITC’s newer FMCG businesses growth has been rated by a recent Nielsen report to be the fastest among the consumer goods companies in India. Brands like Aashirvaad atta and Sunfeast biscuits have already garnered annualised consumer

Amul forays into bakery biz, new plant for cookies on cards

mul, the country’s biggest dairy brand, plans to expand its fledgling bakery products business and will soon build a plant that can produce 20 tonnes of cookies a day, a top official said. “We are looking at a 40% annual growth for cookies, buns and bread that accounted for over 20 crore,” Rahul Kumar, MD of the 2,800-crore Amul Dairy, told. “Unlike other brands which use butter flavour we are using 26% Amul butter in our cookies which consumers will like,” he added. The dairy cooperative has been selling cookies in chocolate, multigrain, butter and coconut varieties for two years in the Anand region catering to neighbouring markets of Ahmedabad and Vadodara in central Gujarat. It currently has a manufacturing capacity of 15-20 tonnes of cookies a month, which it says is not enough to meet demand. The company will set up an automated plant at Mogar in Anand within a year, Kumar said. “We have received good

response and feel that we can capitalise on distribution network of the federation that is experienced dealing with perishable products,” he said. Six months ago, Gujarat Cooperative Milk Marketing Federation (GCMMF) decided to brand and pack cookies attractively for the Anand market. RS Sodhi, managing director at GCMMF, however, said the cooperative is in no hurry to take its non-dairy business national. Despite becoming 20-crore portfolio for Amul Dairy, its diversification in cookies is yet to catch the attention of established players such as Parle Products (maker of Hide & Seek and Milano), Britannia (Good Day) and ITC (Sunfeast). An executive with a Mumbai-based biscuit maker told that he is not aware of

spends of over Rs 2,000 crore each. The Classmate brand of notebooks and scholastic products has notched up consumer spend of Rs 1,000 crore, while Bingo!,Candyman and Vivel are estimated to over Rs 500 crore each. While Aashirvaad is the market leader in packaged atta segment, Sunfeast Dark Fantasy has emerged as the market leader in the premium cream biscuit category. In confectionery, Candyman too is a leader while ITC’s instant noodle brand Yippee! is the second largest. Talking about the cigarette business, Deveshwar said India is perhaps the only country in developing world where domestic brands have been able to outclass any foreign brand by a long margin. “The threat from foreign brands, however, is growing due to exponential growth of contraband cigarettes induced by the high rates of central and state taxes,” he said. Amul’s entry into the 500-crore market for cookies. He pegged market for biscuit at 15,000 crore. BK Rao, group product manager at Parle Products, said if Amul enters the market it will expand the overall segment. “However, if the product is priced at a higher range then acceptance will be more in modern retail and volume sale will be less,” he said. Rao said ideally a 80-90 gram pack of cookies should be priced at 10 to make it a mass product. Cookies offer high margin of 20-30% and the segment has already attracted a number of regional players such as Priya Gold in the North and Bisk Farm in the East. GCMMF’s Sodhi said that even as test trials have been successful, it is too early to go for a national launch. “This segment is very competitive and is a low margin category. One has to put a lot of investment in branding too,” he said. GCMMF Limited, Amul’s apex marketing body, earlier test-marketed tea, coffee, snacks and mineral water under different brand names, but could not sustain these product categories. Nitin Mathur, consumer research analyst at Espirito Santo Securities, said packaged foods as a category was more vulnerable in a slowdown period. Oil & Food Journal Vol. 08, Issue 10, August 2013

he Cabinet Committee on Economic Affairs (CCEA) approved the setting up of 12 new mega food processing parks at a cost of Rs 1,714 crore. This is the second time in the last few years that the CCEA has approved a fairly huge tranche of food parks in one go. During the 11th Five-year Plan (200712), some 30 mega food parks were sanctioned by the CCEA in three phases. While on paper all of this would imply the setting up of giant capacities in different parts of the country benefitting both processors and farmers, the ground reality is very different. As of now, there are only two mega food parks (from the initial lot of 30) that have seen the light of day. One in Ranchi called the Jharkhand Mega Food Park, and the other, called the Swami Ramdev Baba Food Park in Haridwar. What happened to the rest? They are yet to get off the ground. Though four including one by the Future Group is in advanced stages of completion in Bangalore, the fact that there have been few corporate takers for food parks in general is obvious to many. Oil & Food Journal Vol. 08, Issue 10, August 2013

So where lies the problem? Harsh Mariwala, chairman & managing director, Marico Ltd, puts it bluntly, “FMCG companies are interested in marketing, not manufacturing. These projects make sense for B2B players, those who are involved in supplying products to the food industry, restaurants or hotels. It makes no sense for us to get involved in production.” On an average, almost 50% of manufacturing in the Rs 1.8-lakh crore FMCG industry in India is outsourced. The trend, according to experts, will only grow, with the proportion of in-house to outsourced production expected to rise in the coming years. The challenges Like most other infrastructure projects, the key challenge in setting up food parks lies in land acquisition, says Anand Ramanathan, associate director, KPMG Advisory. Most projects, according to persons in the know, have failed to take off mainly because of the bottlenecks involved in land acquisition. The other challenge is in being able to attract the right set of tenants, basically,

NEWS

CCEA approved the setting up of 12 new mega food parks at a cost of Rs 1,714 crore manufacturers and ancillary players, who can come forward and set up base in a food park. Kishore Biyani, chief executive, Future Group, while declining to get into specifics said his group had managed to ink tie-ups with 40 national and international players who would work out of the 115-acre food park his group company Future Ventures was setting up. “This park will get operational by December this year,” he said. “It will be involved in collection of food items from different centres around the food park. Once brought into the food park, it will be further processed,” he says. Companies such as LT Foods, the maker of Daawat Basmati Rice, according to persons in the know, have already inked a joint venture with Future to utilise its food park for manufacturing and processing rice and other staple items besides snack foods. Biyani claims the initial investment by his group to set up the food park has been to the tune of Rs 300 crore. The manufacturers and ancillary players who will work out of the food park are expected to bring in an additional Rs 700 crore, taking the total figure to Rs 1,000 crore, he claims. But while Future is on course to get its food park up and running, the same cannot be said about the other projects that the government had given the nod to in the eleventh five-year plan. Details remain sketchy about these projects. The bigger challenge also is the lack of agriculture sector reforms that many believe should run concurrently even as infrastructure for food processing is set up in the country. “For instance, 70% of agri business in India happens through co-operatives. How they be integrated into this scheme of mega food parks? If that is addressed that could help in giving food parks a huge fillip,”’ Ramanathan says.

NEWS

Veterinary university develops new food processing technology

epartment of livestock products technology in College of Veterinary Science, Guru Angad Dev Veterinary and Animal Sciences University has developed and transferred three main technologies to four budding entrepreneurs. Manish Kumar Chatli head, department of livestock products technology said that the processing technology of the ggg jam, prepared from eggs as base materials and offers a nutrition alternative to existing fruit jams in the market and have protein content of 16-18% in comparison to 2-4% in fruit jams. This technology has been transferred for manufacturing and marketing to ML Kansal of Kansal and Kansal Agro Farms, GT Road, Kohand, District Karnal for Rs 100,000 on single user basis. Second technology of Ready-to-eat meat snacks products such as Meat cutlets, meat croquette, meat samosa is being transferred to Balwinder Singh, PP Chicken Corner, Dashmesh Nagar, Moga on multiple user basis for Rs 30,000 only. Third processing technology of the development of Emu Meat Products such as pickle, burger patties, nuggets, balls/ koftas is being transferred to Gurpreet Singh Emu farming

Court stays Himachal ban on polythene-packed chips, candy

n a temporary reprieve to MNCs, the Himachal Pradesh High Court stayed the government order imposing a ban on potato chips and candies packaged in polythene. Hearing a bunch of petitions, a division bench of Justice D.D. Sud and Justice Sanjay Karol stayed till Sep 3 the ban, which came into force in the state. The government issued a notification June 26, banning sale and stocking of 25 food items, including chips and biscuits, which are available in plastic and non-biodegradable packs. The government’s notification came in the wake of the high court order Jan 10 that directed the government to ban the items packed in plastic packaging from April 1. But later on the request of the state government, the court had extended the time limit to implement the orders by three months. The government pleaded that additional time was required to evaluate the possible consequences that may arise as a result of the ban.

and Research Private Limited, Bhatinda, Ludhiana and Balihar Durka, Chief Financial ServicesShaheed Bhagat Singh Nagar (Nawanshaher) for Rs 30,000/- each. These technologies were transferred in the private limited for presence of G Vajralingam, Financial commissioner, Animal Husbandry, Fisheries and Dairy Development who was here in connection with Fisheries and Dairy officers workshop held at GADVASU. Dr Vijay Taneja, vice chancellor congratulated the efforts of the scientists and told that it will help in developing the nexus between university and industry. Dr Taneja said that entrepreneur should gatherfeedback from end users, so that the further research may be carried out as per the need and requirement of the industry. It is pertinent to mention that Guru Angad Dev Veterinary and Animal Sciences University conducted research in the frontier areas of veterinary and animal sciences to improve animal production, animal health, disease diagnosis and processing of livestock products (milk/meat/eggs/fish). Dr Vijay Kumar Taneja, Vice Chancellor, GADVASU stated that the concerted and pragmatic approach of the scientists of the university has resulted in the development of a number of new technologies which can be beneficial for the animal industry personnel’s, farmer’s, budding entrepreneurs who want to start or develop their business and unemployed youth, who want to take animal husbandry as a business. He said that transferring the technologies basically for the benefit of the Punjab farmers and small entrepreneurs. Hence, a very nominal fee has been charged from the requesting parties. As per the court’s earlier order, eatables like potato chips, cookies, candy, chewing gum, ice cream, chocolates and noodles would not be available in polythene packs. Essential items like milk and vegetable oils are, however, exempted from the ban. The ban is likely to have wider ramifications as scores of MNCs, which sell such eatables, will be impacted, say government officials. “It is not that 100 percent biodegradable and compostable plastic and packaging material is not available in the market. It may increase the cost of the product. But then people indulging in the luxury of consumption of such consumable items, edible or otherwise, need to share the burden of costs,” the court had said. The court, say legal experts, believes the price rise will be a deterrent for voluminous consumption of junk food, including aerated beverages, which contain a high concentration of synthetic sugars. “We are of the opinion that there should be a ban on only those non-essential items which fall in the category of junk food such as wafers, sweets, noodles, chocolates, ice cream candy, biscuits and ‘namkeen’,” the court had said. “These should be brought into Himachal Pradesh only in biodegradable packaging. Even soft drinks should be brought in glass bottles or other biodegradable packaging but not in nonbiodegradable packaging,” the court had said. It had added: “We also make it clear that if we find that this experiment is successful, then we may expand the scope of this order to cover other non-essential items also.” Oil & Food Journal Vol. 08, Issue 10, August 2013

ithin two years of entering the traditional snacking category, MTR Foods, the Bangalore-based Rs 400-crore ready-toeat foods major, is re-launching its entire range. It is a move to checkmate its erstwhile founder Sadananda Maiya, as seen by experts. Maiya, after selling MTR Foods to Norway-based Orkla, has been aggressively investing in the snacks category and is understood to have notched a larger market share than MTR. Vikran Sabherwal, vice-president (marketing) MTR Foods, says, “Research pointed out that while MTR was a loved brand in Karnataka, the snacks range of MTR was seen a little out of sync with the snacks category practices of using vibrant and youthful colours. Hence, the snacks range has now been re-launched as MTRSnackUp, with new packaging using vibrant colours, which give an extremely strong shelf-presence and great consumer-connect to the range.” Snacks is now becoming an important growth driver for MTR, traditionally depending on its two key categories of spices (masalas) and ready-to-cook mixes. Even though it had launched snacks

in 2011, and is third with a 10 per cent market share in the Rs 83-crore ethnic snacks market in Karnataka (according to Nielsen Retail Audit), Maiya with his Maiya’s Beverages and Food has been giving it a run for its money. Even though Sabherwal says that the relaunch is in line with MTR Food’s strategy to differentiate and insists it is “neck to neck with Maiya’s”, industry watchers say that it has been caught off-guard in the segment. While Maiya had signed a non-compete agreement on his exit with MTR on instant mixes, spices and frozen foods till 2012, there was nothing to stop him from replicating his foray in snacks with MTR for Maiya’s. Where MTR Foods now has 14 different kinds of packages (SKUs), up from the earlier nine, Maiya’s has upwards of 40 SKUs and is looking to grow this number by another 10-15 per cent shortly. “Maiya’s entered this segment with a clear focus and has been investing and innovating aggressively. A crucial difference is that Maiya’s comes out with seasonal snacks which has worked to its advantage,” a senior industry watcher tells. Both MTR and Maiya’s are looking to play in regional snacks such as murukku.

Hokey Pokey Ice creams Procures Pre Series Funding

umbai based chain of ice cream parlours, Hokey Pokey ice creams has received pre-series A funding from Shripad Nadkarni, Apurva Salarpuria which was led by Peter Rajsingh, a partner at New Yorkbased Castellar Partners and Professor at New York University, reports Livemint. Hokey Pokey was founded and incorporated by Rohan Mirchandani, Chef Ganesh K., Milap Shah, and Uday Thakker and is held and owned by Drums Food International Pvt. Ltd. The Oil & Food Journal Vol. 08, Issue 10, August 2013

NEWS

MTR moves to stop rival from snacking on its market share Haldirams is the leader in most markets in packaged traditional snacks. In ethnic snacking, modern retailers have also entered such as the Future Group with its brand Ektaa. In Karnataka, Maiya’s is said to have already overtaken MTR in this segment. MTR will expand to other markets once it achieves the targets in Karnataka. Maiya, considered as the father of India’s ready-to-eat category (for his work in MTR’s packaged foods), says that he is focusing on what he does best and will not be getting into knee-jerk reactions to competition. “Our roadmap is clear. From our current revenue of Rs 40 crore from the snack category, we want to have revenue of Rs 250 crore in three years. We are investing heavily in automation and we know the tastes pretty well,” he adds. He is said to have extended his brand overseas (US and Japan, for example). Given that Maiya is in the market to raise his first growth equity from private equity investors and has had discussions with blue-chip PE funds, including TVS Capital and India Value Fund, to expand in ready-to-eat and spices, the tussle between his former and present brands will only intensify.

company intends to use the procured funds to scale up its operations and also to launch the company’s FMCG strategy. Hokey Pokey is one of the first parlours in the country to introduce the concept of mixing ice creams on a cold stone slab which gives the customer the freedom to choose and create their own ice creams. It has around 20 outlets in Mumbai and plans to have over 50 outlets by the end of 2013. Apart from serving Mumbai the company plans to also introduce the same concept in Tier 2 and Tier 3 cities and also intends to tap the premium ice cream market by servicing homes in the metropolitan areas.

NEWS

India wastes Rs 44,000 cr worth food every year

espite millions of Indians going to bed on a hungry stomach, the country is letting food worth a whopping Rs 44,000 crore go waste each year due to lack of adequate storage infrastructure. While the wasted fruits and vegetables alone was estimated at Rs 13,300 crore, other food products like rice, wheat, serials and meat are also allowed to perish without consumption. Union Agriculture and Food Processing Minister Sharad Pawar informed Rajya Sabha that setting up more large cold storages and better post harvesting facilities alone can curtail wastage. The minister claimed that the government has taken many steps to encourage creation of additional storage capacity and complimented states that had taken more interest in efficient food storage. Despite these, he insisted that requirement for cold storage remains very high.

that nearly 30 per cent of the country’s fruits and vegetables perish due to lack of cold-storage facilities, while thousands of tons of food-grain rot in ill-equipped warehouses. Between 15 and 20 per cent of cooked The Saumitra Chaudhuri Committee, food at weddings, parties or restaurants is constituted by the Planning Commission wasted as well. in 2012, has estimated the country’s cold Though Thomas mooted the idea of storage requirement as 61.3 million tonne introducing guest control system in as against the present capacity of around marriages to prevent wastage of food, it 29 million tonne. failed to take off due to accusation from The Centre provides grant-in-aid for several quarters. states to build cold chain infrastructure, DH News Service which is 50 per cent of the total cost of India produces around 250 million tonne plant and machinery in general, areas and of foodgrain in a year, but its annual 75 per cent in difficult areas including consumption remains far lower at 220 the Northeast. However, it has kept the million to 225 million tonne. The country sealing as Rs 10 crore. has failed to take advantage of the higher Reducing the amount of food wastage was production levels as it is reported that one of the major arguments the government more than 250 million people go to bed had put forth while allowing Foreign hungry each day. Direct Investment in retail sector last year, The report released by Ministry of as it insisted that companies would invest Statistics and Programme Implementation in back-end cold storage infrastructure. last year said 48 per cent children under However, since the FDI clearance, it is the age of five are stunted (too short yet to receive a proposal from the global for their age), indicating that half of retail giants. the country’s children are chronically Earlier, Food Minister K V Thomas told malnourished.

Amul adopts green tech for its chocolate plant

mul chocolates will be manufactured with green technology. The Kaira District Co-operative Milk Producers Union Limited (KDCMPUL) popularly known as Amul Dairy has adopted low carbon technology at the Amul chocolate plant at Mogar in Anand district. The technology commissioned by the dairy co-operative is first of its kind in Gujarat. The district dairy union’s initiative comes after its green initiatives involving lakhs of farmers to plant over 312 lakh saplings to make Green Gujarat and its green project at Virar in Maharashtra - the first of its kind in country’s dairy sector. The Electric Heat Pump (EHP) system installed at Amul’s Mogar Food Complex was commissioned. This project is being executed by Amul, The Energy and Resources

Institute (TERI), New Delhi, the Institute of Global Environment Strategies (IGES), Japan and the Japan International Cooperation Agency (JICA). EHP system was installed by engineers from Mayekawa Manufacturing Company Limited, Japan under a four year research project - ‘Application of Low Carbon Technology’ being undertaken by TERI, New Delhi jointly with IGES, Japan. The goal of this project is to promote energy efficiency and environment friendly technologies in Indian small and medium enterprises. The pilot project, introduced for the first time in India, will result into energy saving of around 47 percent and reduction in CO2 emission by 39 percent which corresponds to the monetary savings to the tune of Rs 20 lakh per annum besides reducing reliance on

fossil fuels. “This initiative by TERI and IGES for implementation of low carbon technologies, especially in developing countries like India is appreciable. We hope that application of such technologies will be replicated by the processing industry in general and dairy industry in particular to reduce energy consumption and CO2 emissions,” Amul Dairy’s managing director Rahul Kumar said, lauding the role of the team engaged in the successful commissioning of the system. The total project cost is to the tune of Rs 1.5 crore. “This pilot plant at our Food Complex will also act as a demonstration site for other dairy units and milk plants in India, who are interested in knowing more about this green technology,” said Kumar. Oil & Food Journal Vol. 08, Issue 10, August 2013

Oil & Food Journal Vol. 08, Issue 10, August 2013

NEWS

Mother Dairy

s zooming prices of onion make consumers cry, Mother Dairy is eyeing the market for frozen onion rings, spinach as well as guava and mango as it seeks to consolidate its leadership in the organised retail market for frozen vegetables. Increased price volatility of fresh vegetables and demand for premium, pre-cut vegetables even after the season ends is boosting demand, helping the organised retail market grow 15-20% a year, industry executives say. “We are looking to come up with frozen onion rings and even frozen spinach blocks for the food service segment and consumers. It will be a win-win situation for consumers to get a product at one price all year round,” said Pradipta Kumar Sahoo, business head for horticulture at Mother Dairy Fruit & Vegetable. He added that frozen mango and guava were the other products that were in pipeline. Starting August 15, the company would launch a new range of

frozen vegetables such as english carrots, cauliflower florets and french beans under the Safal brand. Currently, it is selling over 6,000 tonnes of frozen peas, sweet corn and mixed vegetables annually. “It has taken us 18 years to reach this level, but I am confident that we will grow at a much faster pace as consumers look for convenience in getting precut vegetables and all year round availability,” he said. Safal brand has a market share of over 2530% in the frozen vegetable category in the country. All major retailers including Reliance, Big Bazaar, Easy Day and More sell peas or corn in their own private labels. The industry pegs annual sales of frozen peas alone at over 50,000 tonnes. Regional players like Pagro Foods in the north Indian market and ice-cream major Vadilal Industries in the west have strong market presence in their respective territories and are gearing up for countrywide operations. Apart from

convenience and natural taste, frozen vegetables also provide value for money. In the case of frozen cauliflower florets, consumers would have to pay only for florets with 100% yield, which is ready to cook. “The prices of these frozen vegetables are free from market volatility and inflation,” Sahoo said. The company would make use of the entire 4,000 tonne capacity at its plant in Mangolpuri in New Delhi by using different seasonal windows. As per Sahoo, he was looking to sell over 500 tonnes of new products in the first year. The fruit and vegetable business (retail, frozen and food pulp and concentrate) of Mother Dairy accounted for Rs 540 crore or 10% of the group turnover. Apart from its 425 retail stores across the Delhi NCR region and Bangalore, Safal will sell its frozen vegetables, in 200 gm and 500 gm packs, in all modern retail formats and 15,000 outlets in India. The company is in the process of adding 15 more stores in Bangalore to make it 40 there by year-end and over 30 more stores in the Delhi NCR region. With a wide network of 110 farmer’s associations and collection centres, Safal doesn’t see a major challenge in procurement of vegetables. It would be using IQF technique and ensure that the frozen vegetables are natural and contain no preservatives or additives, said Sahoo.

Ruchi Soya plans palm processing unit in Orissa

director, Ruchi Soya Industries. The company has started oil palm cultivation on 28,000 hectares land in Mayurbhanj, Balasore, Bhadrak and Kendrapada districts for which the company has entered into a tripartite agreement with the state government and farmers. Ruchi Soya processes about 0.52 million tonne oil palm per annum. Apart from Odisha, Ruchi Soya is working with the farmers in the states of Andhra Pradesh, Mizoram, Gujarat, Tamil Nadu, Karnataka and Chhattisgarh. In Andhra Pradesh, Ruchi Soya has access to over 30,000 hectares of plantation. The company operates four oil processing mills in Andhra Pradesh with aggregate FFB processing capacity of 125 tonne per hour. “We also have plans to set up an oil refinery in Odisha”, he added.

On hiking the prices of edible oils in the wake of rupee weakening against the dollar, Shahra said, there is no concern for price rise as the international prices of edible oil are coming down and in India, the price is also falling because of the good domestic oil seed crops this year. The company imported about 1.4 million tonne of both crude and edible oil last year.

to launch frozen onion rings, English carrots

uchi Soya Industries, India’s largest cooking oil and soya food maker, plans to set up an oil palm processing mill in Odisha at an investment of Rs 30 crore. “We will initially set up a 10 tonne per hour fresh fruit bunches (FFB) processing mill next year. We are exploring for a location in districts like Mayurbhanj, Balasore and Bhadrak. The plant will take two years for operations”, said Dinesh Shahra, founder and managing

Oil & Food Journal Vol. 08, Issue 10, August 2013

xpanding its integrated science capabilities at the DuPont Knowledge Center in Hyderabad, India, DuPont opened an Application Development Center focused on integrating advanced material science with other scientific disciplines for the automotive industry, enabling solutions for light-weighting, engine performance, comfort and safety. These capabilities also are relevant to other industries such as railways, electrical/electronic components, food processing, agriculture, irrigation, textile and many more. At the Application Development Center, DuPont’s integrated science brings value-added solutions to customers in these industries enabling better, safer and sustainable products for consumers. “The integration of scientific disciplines in advanced materials, such as highperformance polymers and elastomers, are critical to developing cost-effective and sustainable solutions to some of the big challenges that our company is focusing on, for example, reducing our dependence on fossil fuels,” said DuPont Performance Polymers President Diane H. Gulyas. “Materials are only part of the story. The application development process is how we work with customers to get ideas into the market cost effectively. It is the engine of innovation for the polymers business and centers such as this new one in India help customers innovate and find more sustainable solutions in collaboration with DuPont scientists and engineers”. “This latest expansion at the DuPont Knowledge Center reflects our strong commitment to deliver integrated sciencepowered solutions and innovations that meet market needs, in collaborations with our local customers and partners. This new facility is part of the global DuPont community of 10,000 scientists and engineers around the world, thus Oil & Food Journal Vol. 08, Issue 10, August 2013

connecting our global science capability to local market needs. I am confident this will enhance our ability to serve customers in India and South Asia,” said Rajeev A. Vaidya, president - South Asia & ASEAN, DuPont. The new Application Development Center at the DuPont Knowledge Center (DKC) houses thermoplastic and elastomer processing and testing equipment and leverages existing analytic equipment shared with several DuPont science disciplines. It complements the manufacturing facilities in Savli, Gujarat, and the DuPont India Innovation Center in Pune. It expands their capabilities to support predictive engineering, including computer-aided engineering (CAE), 3D surface computer-aided design (CAD), mold-flow, warpage, structural, impact and NVH (noise, vibration, harshness) analysis. By connecting with DuPont scientists and engineers at key automotivebased laboratory sites in the United States and Europe, this new center can build on the current predictive engineering power of CAE capabilities with speed-to-market excellence to advance the growing market in India. “Taking full advantage of the lightweight nature of plastics requires more than just metal replacement,” said Homi Bhedwar, technology director, South Asia and ASEAN. “Engaging us early in the design stage helps take advantage of integrated science opportunities to reduce cost and complexity in many vehicle components. Our aim at the Application Development Center is to work closely with customers visiting the Innovation Center in Pune, network with DuPont technical experts globally, offer products and solutions tailored to local needs, and bring them to market faster.” The DuPont Knowledge Center is one of the four regional R&D centers of DuPont and undertakes research as well

NEWS

DuPont expands integrated science capabilities in India

as applications development focused on science-based solutions that meet the society’s needs for more and better food, access to reliable and uninterrupted energy, better mobility and protection of people and the environment. In total, DuPont has more than 150 R&D facilities around the world. DuPont Performance Polymers is committed to working with customers throughout the world to develop new products, components and systems that help reduce dependence on fossil fuels and protect people and the environment. With more than 40 manufacturing, development and research centers throughout the world, DuPont Performance Polymers uses the industry’s broadest portfolio of plastics, elastomers, renewably sourced polymers, filaments and high-performance parts and shapes to deliver cost-effective solutions to customers in aerospace, automotive, consumer, electrical, electronic, industrial, sporting goods and other diversified industries. DuPont India is a subsidiary of the American parent. DuPont’s relationship with India began more than 200 years ago when it received its first shipment of raw materials from India to produce black powder for explosives in 1802. Today, DuPont India markets a wide range of products in varied market segments. With six production facilities in three locations, the DuPont Knowledge Center in Hyderabad and the DuPont India Innovation Center in Pune, DuPont India is delivering science-based solutions to address the needs of local markets.

TRENDS 42

Oil & Food Journal Vol. 08, Issue 10, August 2013

NEWS

Post harvest losses in India may cross Rs. 2.50 lac crore by 2013-14: ASSOCHAM

hough India has attained the second highest position after China in producing vegetables and fruits in world, the post harvest losses touched an alarming amount of Rs. 2.13 lac crore in 2011-12 and may cross Rs. 2.50 lac crore in 2013-14 according to the ASSOCHAM study. The research team engaged by ASSOCHAM found that 30% of fruits and vegetables were rendered unfit for consumption due to spoilage after harvesting, virtually negligent attitude towards post harvest losses, absence of food processing units and unavailability of modern cold storages. The post harvest losses were calculated on the basis of production and wholesale market price among the states. The research-team found that among the major producing states, West Bengal incurred highest loss of Rs. 13,657 crores followed by Gujarat Rs. 11,398 cr, Bihar Rs. 10,744 cr and Uttar Pradesh Rs, 10,312 cr. The other states were Maharashtra Rs. 10,100 Cr., Andhra Pradesh Rs. 5,633 cr., Tamil Nadu Rs. 8,170 cr., Karnataka Rs. 7,415 cr., and Madhya Pradesh Rs. 5,332 cr. Rana Kapoor, President ASSOCHAM commented that, “India’s current levels of food processing continue to be low in perishables categories like Fruits and Vegetables (2-3%), Poultry (68%), Fisheries (10-12%). This can be turned around by adopting innovative institutional mechanisms to upscale both our warehousing and logistics infrastructure with the objective of harnessing the efficiency of both public and private sectors including effective collaborations under principles of PPP. The “Vision 2015” plan put forth by the Ministry of Food Processing Industries (MoFPI) envisages tripling the size of the processed food sector by increasing the overall level of processing of perishables to 20 percent. This shall entail significant capacity creation in the food processing sector- with the twin objective of enhancing shelf life of produce as well as reducing wastages. I see this as a case for turning ‘adversity’ into ‘opportunity’.” The study observed, that towards the 44

end of 2012, the total cold storage capacity is 301.1 lacs mt which is only 12.9 percent of fruits and vegetable production. The additional requirement of cold storage in India is 368.32 lac tonnes which is 151.6 percent of existing capacity. The existing cold storage capacity is available only in the wholesale markets or closer to the wholesale market. Whereas the majority of fruits and vegetable are sold at the local market or regional markets thus these markets does not have facility of cold storage. Therefore, the shortage cold storage also generates huge wastage of fruits and vegetable. Similarly, wholesale market development is very important factor for reducing the post harvest losses. Wholesale markets improve efficiency in food distribution by encouraging competion through creating conditions for transparent price discovery at relatively low costs and by enhancing access to market information for various actors. Where multiple equilibrium prices occur for a single commodity because there are no wholesale markets, price transparency is undermined and transaction costs rise. The increasing trend of fruits production has brought in its wake being new challenges in terms of marketing of produced goods as soon as possible because perishable in nature. At present only 22.3 percent only 22.3 percent of produced fruits and vegetable reached to the wholesale market in India. The wholesale markets of fruits at all India level increased by 10.9 percent during 2008-09 to 2011-12 (number of markets increased from 685 in 2008-09 to 760 in 2011-12). However inspite of market development, market reach of the fruits has declined by 44.1 percent during the same period. The market arrival of fruits among the top the five producing states

shows, Andhra Pradesh registered highest compound annual growth rate (CAGR) of 85.0 percent during 2008-09 to 2011-12 followed by Karnataka with 23.4 percent growth rate. Whereas other top producing states such as Tamil Nadu, Gujarat and Maharashtra (Maharashtra is the largest producer of Fruits in India) have registered negative compounded annual growth rates of 81.5 percent, 27.5 percent 10.4 percent respectively. Maharashtra is the largest producer of fruits but the cold storage capacity available is very low i.e. 5.47 lac tonnes which is less then 25 percent of market arrival of fruits alone and the additional required cold storage facility is 57.26 lac tonnes. The numbers of wholesale markets for vegetable sector in India increased from 1002 in 2008-09 to 1087 in 2011-12. At the same time, market arrival has registered nominal growth of 2.17 percent period whereas production has registered very high growth rate (47.0 percent). At present only 17.8 percent of produced vegetable reached to the wholesale markets. The lower reach of market arrival has many implications such as producer cannot realised actual market value & price, puts pressure on price of product at the consumer end etc. The market arrival of vegetable among the top five producers reveals, Madhya Pradesh registered highest growth (Compound Annual Growth Rate) of 57.3 percent from 200809 to 2011-12 followed by Uttar Pradesh (15.6 percent), Andhra Pradesh (8.6 percent) and West Bengal (6.8 percent). Oil & Food Journal Vol. 08, Issue 10, August 2013

mong the many amendments moved to the National Food Security Bill, 2013, the most crucial ones relate to the removal of two specific provisions in the Schedule II of the bill that the HRD ministry feels could open the gates for “industrially produced, packaged food” in the MidDay Meal (MDM) scheme. The HRD ministry has also supported many other amendments moved by the leader of opposition in Lok Sabha Sushma Swaraj and former HRD minister Murli Manohar Joshi that have asked for omission of the term “ready to eat meal”. Two specific provisions that the HRD is opposing talks of providing “energy dense food fortified with micronutrients as per 50% of recommended dietary

Oil & Food Journal Vol. 08, Issue 10, August 2013

allowance” and “the provisions of the Food Safety and Standards Act, 2006 and any other law for the time being in force shall apply to meals referred in the schedule”. As for the first one about providing dense fortified food with micronutrients, the ministry has said “if the ministry commits to providing 50% of each of micronutrients through the Mid-Day Meal scheme under the National Food Security Bill, it will not be possible for them to do so without resorting to industrially produced, packaged food”. It has warned that it could even “open the floodgates to litigations by manufacturers wanting to take over the MDM”. As for the provision of imposing nutritional standards, the ministry has said nutritional standards specified in

NEWS

HRD ministry backs omission of packaged meal in food bill

Schedule II of the bill is sufficient and there is no need to add on the value of micro-nutrients to secure the interests of the MDM scheme and ensure that it does not lead to “back-door entry of contractors to provide the micronutrients in the meal through industrially produced processed food”. Amendment by MPs Prabodh Panda, Harin Pathak, M B Rajesh and Gurudas Dasgupta demanding specific provision disallowing engagement of private contractor for production and processing food and giving preference to gram panchayat, women self-help groups and mahila mandals has been supported by the ministry. However, it has pointed that in urban areas due to space constraint MDM guidelines provide for centralized kitchen where cooking can take place and cooked hot meal may be transported to schools. The ministry has also supported amendment that brings pulses under the definition of foodgrain for MDM. It has said it would help the scheme to get good quality pulses at reasonable rates.

Oil & Food Journal Vol. 08, Issue 10, August 2013

GLOBAL STUDY

Oil & Food Journal Vol. 08, Issue 10, August 2013

NEWS

UP launches loan waiver Kaamdhenu dairy scheme

n a bid to encourage dairies and cattle breeding and to develop it into small scale industries, the state government has decided to launch a Kaamdhenu Dairy unit scheme. The aim of the scheme is to encourage people to set up dairies and bring high quality breed animals in the state. Under the scheme, one dairy would be set up in each district in the first phase of the scheme this year. The dairy to be set up should have a minimum capacity of 100 cows/buffaloes. The scheme as per the response would be expanded in the years to come, said Cabinet minister for Animal Husbandry Raj Kishore Singh. Delving in detail about the scheme, the minister said that 25 per cent of the total expenditure on setting up a dairy would be borne by the applicant while the rest of 75 per cent amount would spent through loan

from the bank. Like in broiler farming, the state government has decided to pay the interest on the loan for a maximum duration of five years. The scheme once implemented is expected to generate additional 225 litre of milk. The scheme specification further states that the applicant can only keep sankar jersey, sankar HF or saahiwaal breed of cows. The scheme further states that each dairy can keep only one breed of cow. Similarly, only murra breed of buffaloes could be kept in the dairies. However, it has been left to applicant to decide whether he wants to keep only cows or buffaloes or both. It has been made mandatory that the cattles would be purchased only from outside the state.The animals would have to be purchased through animal husbandry

department officials, the scheme further states. As per the rough estimate, setting up of dairy would cost an applicant approximately Rs 1.2 crore. Out of which, the applicant would have to invest around Rs 30 lakh while the rest would have to be arranged through financing. The state government is estimated to bear an expense of around Rs 32.5 lakh in the form of interest for five years. A total of over Rs 24 crore would be spent by the state government for five years as payment for interest amount for 75 districts, the minister further said. Each unit is expected to get profit of about Rs 2.08 crore in five years, the scheme further elaborates. Since, the scheme makes it mandatory for the applicant to set up cow dung gas plant and feeder mix plant; this would help in generating at least 80 unit of electricity per day. Since the process to select applicants is underway, the scheme would be formally launched once the selection process is completed, the minister said.

New Zealand’s Fonterra keen to work with Indian dairy sector

ew Zealand-based cooperative dairy giantFonterra is keen to work with Indian local industry in a bid to establish its presence in the region and to meet the strong consumer demand for quality diary. “We think our exports from countries such as New Zealand and Australia can, at best, only play a small role in helping meet the demand of growing economies such as India and China,” Fonterra President (Greater China & India) Kelvin Wickham told. “However we also see opportunities where we can potentially work with the local industry to keep meeting the strong consumer needs for quality dairy in the future,” he added. “Fonterra is only in the very early stages of our operations in India. However, we see that the Indian dairy market has some unique opportunities in the future,” he said. “The country has over 1.2 billion consumers who are becoming wealthier 48

and, unlike other large countries like China, dairy is a traditional part of the Indian diet. So the opportunity for strong growth is present in this market,” he said. “The Indian industry will be shaped by changing market conditions and a strong co-operative heritage, providing for an exciting future,” he said. Last year, Fonterra announced its first operating office in New Delhi as to advance its relation with India.

Commenting on the move, Wickham had said: “The first New Zealand dairy products arrived in India in 1885. We have been supplying dairy ingredients to Indian customers for generations and have strong relationships across the country. “Establishing a presence on the ground will allow us to explore further opportunities in the world’s fastest growing dairy market.

Oil & Food Journal Vol. 08, Issue 10, August 2013

t a time when India is struggling to consistently meet its growing domestic dairy demand, Indo-US bilateral trade can be mutually beneficial, American dairy exporters today said while applauding US Vice PresidentJoe Biden for taking up their cause during his just-concluded trip to New Delhi and Mumbai. “US dairy exporters believe that trade between the United States and India can be mutually beneficial, particularly as India struggles to consistently meet its growing domestic dairy demand,” said Tom Suber, president of US Dairy Exporter Council. “As the US and India reengage in talks aimed at improving bilateral trade, we must ensure that a focus on the importance of safe and accurately labelled food remains at the core of discussions on agricultural trade,” he said. In a joint statement, the National Milk

Producers Federation (NMPF) and the US Dairy Export Council (USDEC) applauded Biden’s remarks calling for expanded trade between India and the US, during a speech in Mumbai. He also pointed to the need to negotiate and work through barriers to market access, among other trade priorities. “For far too long, a wide range of US dairy products have been effectively locked out of the Indian marketwithout sound scientific justification,” Suber said. “US dairy products are sold in over 100 markets around the world and are well known for their high level of food safety. We look forward to renewed discussions with India on how to remove inappropriate barriers to market access for safe products,” he said. “As we focus on tearing down unwarranted trade barriers so that our industry can continue to grow, it is equally important to ensure that we also maintain a strong focus on food safety and product

India is the fastest growing market for adult consumption of chocolates and candies

ittle girls and boys, be advised to keep your chocolates and toffees safe...or your parents may bite into

them! Chocolate and confectionery makers say adult consumption of chocolates and candies is growing at the fastest pace in India, and companies like Mondelez, Mars, Nestle, Perfetti Van Melle, Parle and ITC are launching new products and brands that target the grown-up. Now there’s a lollipop to overcome boredom, sugar-free mint for the calorie conscious, a toffee which can boost romance, and dark chocolates that are bitter yet sweet. Spencer’s Retail president & CEO Mohit Kampani says almost 20% of chocolate sales in at the retailer come from adult chocolates. “Adult chocolate consumption Oil & Food Journal Vol. 08, Issue 10, August 2013

is getting a fillip from modern retail. A recent Nielsen report shows chocolate sold through modern retail has outpaced that of general trade,” he says. Kampani says new ways of positioning the brands has put the category into high consumption mode, with per capita consumption going up from 40 gm in 2005 to 120 gm this year.

integrity,” saidJim Mulhern, chief operating officer of NMPF. “US dairy products have an excellent track record in this area while India’s own government has found serious problems with a majority of its own dairy products,” he added. In early 2012, NMPF called the US Food and Drug Administration’s attention to a study conducted by the Indian Food Safety and Standards Authority that found that 68 per cent of milk samples analysed did not meet Indian standards. “Given these alarming findings, we believed it was important for FDA to determine if adulterated dairy products in India were entering the US market,” Mulhern stated. “We are gratified that FDA agreed that concern is warranted and this summer put in place an import alert on certain dairy products from India,” he said. The FDA import alert calls for the detention of specified dairy products from certain Indian exporters and requires further documentation to ensure that the products are complying with US regulations designed to protect food safety.

NEWS

Indo-US trade can be mutually beneficial, say dairy exporters

Urban consumers now buy chocolates and confectionery for everyday consumption. Earlier, they would buy them mostly during festivals. Also, more and more Indian consumers are replacing traditional sweets with chocolates. Indians now prefer chocolates over ‘chaat and tikki’ in a substantial change in snack consumption pattern, according to a report by leading chocolate maker Mars along with research firm IMRB. The report mapping snacking consumption patterns among Indians was released in June. “Over the years, change in consumers’ preferences, eating habits and their global exposure has given a boost to the chocolate industry,” MV Natarajan, managing director (chocolate) at Mars International India, says. He says that the chocolate market is registering high growth mainly because of availability, affordability, anytime-anywhere consumption and convenience. “Chocolates are now considered a fun-to-eat snack rather than occasional luxuries and an important item in consumers’ grocery baskets,” Natarajan says.

NEWS 50

It’s hardly surprising then that Mars, which makes Snickers, Galaxy and Mars chocolates, debuted its first television commercial for Snickers with 50-something actor Rekha late last year. India’s chocolate market is estimated at around Rs 3,000 crore while the organised confectionery market is around Rs 2,000 crore. The overall chocolate market is growing 15% a year, while the growth in modern retail is almost double of that. As per a recently published report by TechSci Research, India’s chocolate market is expected to reach $3.2 billion by 2018 due to increasing gifting culture in the country and increase in the income bracket. Devendra Chawla, president (Food Bazaar) at the country’s largest retailer Future Group, says Indian consumers are upgrading their mithai consumption with chocolates, leading to premiumisation in the category.

Indian Institute of Crop Processing Technology Develops New Technologies

he Indian Institute of Crop Processing Technology has been developing new technolgies for the benefit of farmers. In 2011-12, IICPT developed a multipurpose yard drying equipment for paddy drying an on-farm fruits and vegetables washer and a millet puffing machine. It also developed an on-farm vegetable grader fluidized thermal disinfestation unit and a low friction huller for shelling and polishing. In 2012-13, the technologies developed by IICPT include: smoking kiln for fish and a meat, makhana popping machine, a continuous amla deseeder, a neera (Beverage) from toddy, pneumatic grain pump, a continuous steaming system for paddy parboiling and a tender coconut cutting and juice extraction system. In the current year, the institute has developed an on- farm leafy vegetable washer, an on-farm washing cum wax coating machine for banana, a ripening chamber for banana, a continuous UV treatment system for surface sterilization of leafy vegetables and a cane sugar peeling machine. Government has approved up-gradation of IICPT to a national level Institute at a cost of Rs. 102.13 Crores. This information was given in Lok Sabha today by Minister of State for Agriculture and Food Processing Industries, Dr Charan Das Mahant in a written reply.

Oil & Food Journal Vol. 08, Issue 10, August 2013

NEWS

Urschel India Moves to a New Facility Pune, India — In 2004, Urschel established Urschel India Trading Private Limited, a direct office in Pune. To accommodate growing business, Urschel India has recently moved into a larger facility in a newly constructed building strategically located within Pune.

corporate headquarters in the U.S. in order to provide superior service. Routine inspection and maintenance of these components by Urschel trained technicians add to the efficiency of plant operations by deterring costly downtime. Over time, this offers significant savings.

“Supplying our customers with the best service is always a top priority, and this new facility allows us to do exactly that,” stated Mr. Nitin Shilaskar, Sales Manager of Urschel India.

“We invite customers to schedule a test cut of their product at our new location. This is a wonderful opportunity for customers to see Urschel cutting equipment in action, and discuss their product requirements,” according to Mr. Shilaskar. “Thank you to all of our customers for helping to make this new facility possible.”

The new site features a spacious conference room, open office area, parts service center, and a well-equipped product test cutting facility. The parts service center enables authorized Urschel inspection and repair of critical components found on top-selling Urschel cutting machinery. Urschel India staff are factory-trained and certified as repair technicians at Urschel

NEW LOCATION: Urschel India Trading Private Limited, 101, 1st floor, Navale IT Zone, Phase – 2, S. No, 51/2A/2, Near Navale Bridge NH4, Pune – Bangalore Highway, Narhe Gaon, Taluka Haveli, Pune 411041, India

For a slideshow tour of the new Urschel India, visit: http://www.urschel.com/UrschelIndia.html.

Oil & Food Journal Vol. 08, Issue 10, August 2013

PHONE +91-20-6680 3400 FAX +91-20-6680 3401 EMAIL india@urschel.com Nitin Shilaskar +91-98-5004 3282 Ajay Shenvekar +91-98-8113 7061

NEWS

Start the day right with BENEO at drinktec 2013

16th to 20th September 2013, Munich, Booth: B1 #325

ENEO, one of the leading manufacturers of functional nutrients, will be featuring its new product concepts for breakfast beverages at drinktec. Visitors to the show will have the opportunity to taste the company‟s product ideas on the „New Beverage Concepts‟ innovation platform. Thanks to the nutritional and technical benefits of BENEO‟s naturally derived ingredients starting the day right never tasted so good. At drinktec 2013 BENEO will be showcasing a range of breakfast and morning beverages that encourage taking a healthier approach to the start of the day, even when life is busy. Beverage samples on stand will include a ready-to-drink coffee and a fruit juice that both deliver balanced energy release, due to BENEO‟s functional carbohydrate PalatinoseTM. Visitors to BENEO‟s stand will also have the opportunity to taste a lactose- and cholesterol-free fermented strawberry rice drink and a vanilla flavoured rice milk, both containing BENEO‟s dairy alternative Nutriz. Additionally, a fibreenriched breakfast drink will be presented that combines the prebiotic fibre Orafti® oligofructose with PalatinoseTM.

1 New Nutrition Business, March 2013 With its versatile product portfolio, BENEO is well positioned to make the most of this „convenience‟ trend. BENEO‟s functional ingredients can easily be incorporated into food and drink breakfast solutions, providing optimal nutritional value whilst maintaining taste and texture. ‘BENEO, the smart start to the day’ “Slow release‟ carbohydrate energy and low glycaemic solutions are gaining momentum, especially in the area of breakfast drinks2. Nutritive carbohydrates, such as BENEO‟s PalatinoseTM offer manufacturers a smart solution to develop low glycaemic beverages that provide full carbohydrate energy in a balanced way, for a healthier start to the day. The low glycaemic benefits of PalatinoseTM have also been positively evaluated by EFSA. 2 Mintel presentation at Vitafoods: Energy For A Fast-Paced World - Beyond Energy Drinks, 2013

In addition, with increasing consumer interest in allergen-free foods and beverages, vegetal dairy alternatives, such as BENEO‟s rice concentrate product range of Nutriz, are growing in popularity. Combining the goodness of rice in one ready-to-use compound, Nutriz has a neutral taste and white colour. It gives the end product a creamy texture and balanced taste. BENEO‟s Nutriz is suitable for non-dairy milk or yoghurttype beverages, for those who would like to enjoy a non-allergen, cholesterolfree, and vegetal drink or smoothie for breakfast. As the general public becomes more aware of the beneficial effects of higher fibre intake, solutions bridging the “fibre gap” are bringing new opportunities to beverage manufacturers. BENEO‟s soluble prebiotic fibres inulin and oligofructose are easily incorporated into beverages, promoting a healthy gut flora, while maintaining taste and texture. Jens Böhm, Marketing Manager at BENEO comments: “Breakfast is the most important meal of the day. With fewer people making the time to sit and eat in the morning, it presents an opportunity for the beverage industry to create „liquid breakfast solutions‟ that are convenient, yet deliver key nutritional benefits. We are taking the opportunity at drinktec to show the versatility of BENEO‟s nutrient portfolio to help manufacturers meet consumers‟ growing needs for slow energy release, dairy-alternative and fibre-enriched beverages.”

Growing popularity of convenient breakfast solutions According to Julian Mellentin1, traditional cereal breakfast options are no longer seen as convenient enough for consumers. Busy consumers are now increasingly seeking a „liquid breakfast on the go‟, such as a cereal and milk combination that contributes to a balanced nutrition in a simple and tasty way. Recent BENEO consumer research re-enforces Julian Mellentin‟s viewpoint. It shows the popularity of fibre-enriched yoghurt drinks amongst European consumers because of their convenience and the healthy image they portray.

Oil & Food Journal Vol. 08, Issue 10, August 2013

aturex’s factory in India has successfully achieved the Food Safety System Certification (FSSC) 22000, the latest step in Naturex’s global quality and food safety certification program. With increasing consumer demand for natural colours, the Indian market for natural colours continues to rise, growing by more than 4% each year*. High growth is expected in this area as more Indianbased food and drink manufacturers seek to shift from synthetic colours to natural alternatives. After the acquisition of Valentine, an Indian company specialized in the production of fruit and vegetable powders and natural colours, Naturex has achieved the requirements needed to reach a stringent and complete quality and food management system to respond to the dynamic Indian market for natural colour and its tremendous growth potential. The company successfully achieved the requirements set forth within the Food

Safety System Certification (FSSC 22000). FSSC 22000 is one of the highest levels of certification in food safety management systems. This certification combines ISO 22000, a unique International Standard based on the HACCP method and ISO TS 22002-1, which was developed to specify the prerequisite programs related to good manufacturing practices. It is approved by GFSI (Global Food Safety Initiative), an independent entity which provides guidance on the continuous improvement of food safety management systems worldwide. “At Naturex, food safety and quality strongly support product development” said Nicolas Souchon, Global Quality Assurance Director. “Our Indian Factory is part of our global quality and food safety certification program and this is the fifth site to receive FSSC 22000 certification in less than one year. Bringing the highest level of food safety to our clients will provide them with additional value as well as peace of mind”, he added.

Treatt launches stevia friendly RTD tea product

lavours and fragrances company Treatt has launched a a new range of tea products, including one that is specifically designed to work well with stevia. According to the company, TreattSweet Tea 9859 is a unique non-caloric blend of allnatural essences. When used in tea applications, the back-end bitterness of sweeteners such as Rebaudioside A can accentuate tea’s natural astringency. At dosage levels of 100ppm, TreattSweet Tea 9859 is said to soften these harsh undertones and add lively, sweet aromas to the beverage flavour. It also allows a creamy tea flavour with light fruity notes to come through. The new range is designed to offer beverage producers cost-effective natural ingredients to develop the good-tasting tea options consumers are looking for. Green Tea TrueTaste Natural 200 is a 200 fold iced tea concentrate made using natural tea ingredients. Produced using tea solids rather than caramel colour, Green Tea TrueTaste Natural 200 is claimed to deliver a premium quality beverage with a clean label and satisfying flavour. When reconstituted to single strength, the ready-to-drink (RTD) tea contains a minimum of 0.04% tea solids and is said to impart an authentic deep tea colour with a gentle astringency. Treatt says that it also offers the added benefit of the true fresh taste of iced tea while eliminating the difficulties often experienced when handling powders, and eradicating high brewing costs. Green Tea TrueTaste Natural 200 is said to be particularly suitable for the production of single strength RTD teas. A blend of natural essences from tea and other botanical sources, White Tea Type WONF (With Other Natural Flavours) is designed to enable manufacturers to retain the natural, delicate aroma traditionally associated with white tea. White Tea Type WONF is described as conferring both subtle, fruity white tea notes and a more robust, tenacious finish when added to RTD applications. It can be used at dosage levels of between 1,000 and 5,000ppm in the finished beverage depending on the flavour intensity required.

Oil & Food Journal Vol. 08, Issue 10, August 2013

ADM announces new reduced fat cocoa powder

NEWS

Naturex’s factory in India receives FSSC 22000 certification

DM Cocoa has announced a new deZaan reduced-fat cocoa powder with only 0.5% fat. D-00-ZR is claimed to retain the taste of deZaan ZR cocoa powders but with virtually no fat content. Available worldwide from this summer, ADM says that D-00-ZR enables users to formulate lower calorie products with lower saturated fat contents, but that still retain the desired chocolatey taste, as well as the bright chocolate colour that improves visual appeal, differentiating products in the market. It enhances the quality of formulations where fat can have a negative effect, such as protein foam based confectionery and bakery products. “The presence of fat may have a negative effect on the functionality of ingredients in the formulation, but at the same time fat also provides flavour to a product,” said Brent Cuddy, trade director, cocoa powder. “D-00-ZR delivers the flavour not the fat. Due to the unique production processes of D-00-ZR, the cocoa solids are able to carry an intense chocolatey flavour. Consumers nowadays are more healthconscious but still look for great flavours and indulgence. This unique reduced–fat cocoa powder helps achieve this with ultra low fat levels.” D-00-ZR is also said to be compatible with more delicately textured products such as meringue and sponge cakes. Normally, says ADM, a reduced-fat cocoa powder containing 10-12% fat or more will force these kinds of products to lose crucial structural properties. D-00-ZR overcomes this, allowing them to hold their light structure while providing an intense chocolate flavour and pleasant milk or dark chocolate colour, depending on the concentration.

Oil & Food Journal Vol. 08, Issue 10, August 2013

eritage Foods (India) Ltd. (HTFI), a milk retailer, targets to increase ice-cream sales fivefold in three years and expand other dairy products to lift operating profit margin that fell to the lowest in four quarters. The retailer will boost ice-cream sales to 50,000 liters a day by adding capacity, President M. Sambasiva Rao said in an interview in Hyderabad. It will spend 350 million rupees ($5.8 million) on the business over the period, he said. Heritage expects rising incomes and increasing consumer preference for healthy food to drive demand for dairy products. It will compete with companies including Unilever (ULVR), which introduced its Magnum brand ice cream in south India this year, and Dunkin’ Brands Group Inc. (DNKN)’s Baskin-Robbins in a market where frozen dessert sales are estimated by consulting firm Technopak Advisors Pvt. to double to 15.6 billion rupees in 2018. “To achieve substantial growth in ice cream sales, Heritage would have to venture outside its traditional south India market,” said Arun Kejriwal, director at Kejriwal Research & Investment

Services Pvt. “The southern Indian ice cream market is just not large enough to support ambitious expansion plans for a new entrant.” Shares of Heritage rose 0.8 percent to 217 rupees as of 11:03 a.m. in Mumbai trading. The stock has dropped 13 percent this year, compared with a 0.4 percent fall in the benchmark S&P BSE Sensex. Heritage has over the years been reducing its dependence on milk by adding valueadded products and building a network of fresh food and grocery stores. Its operating profit margin was 5.35 percent in the three months ended June, the lowest in four quarters, according to data compiled by Bloomberg. The company aims for value-added products such as ice creams to contribute 23 percent of its dairy sales in three years, up from 15 percent now, Rao said. “Health consciousness is increasing and people are tilting toward milk-based products from carbonated drinks. So the market is growing for these products,” said Rao. “We are looking at products like ice cream, curd, butter milk, ghee and butter as these products give us better margins than milk.”

India’s JBF Industries building PET film plant in Bahrain

Middle East joint venture led by Indian polyester specialist JBF Industries Ltd. is constructing a biaxially oriented PET film production plant in Bahrain’s free trade International Investment Park. JBF RAK, the Mumbai-based group’s regional partnership, is due to commission the first phase of the Gulf facility next month. A second stage is set to launch in early 2014 with the final capacity upgrade expected to be ready in mid-2014. Oil & Food Journal Vol. 08, Issue 10, August 2013

JBF’s latest $200 million project to manufacture thick, thin and metallized PET films will take advantage of its Bahraini location to tap the Middle Eastern market, as well as export opportunities in Europe’s euro zone, and the United States, with which Bahrain enjoys a free trade pact. JBF RAK is a partnership with the Ras Al Khaimah Investment Authority (RAKIA). Meanwhile, work is progressing on JBF’s first European PET plant, in Geel, Belgium.

Ferromatik Milacron expects growth in India in 2014

NEWS

Heritage Foods Targets to Raise Ice Cream Sales Fivefold

erromatik Milacron India Ltd. Expects a revival in the India market in 2014 after a slowdown this year. The leading manufacturer of plastic injection molding machines and blow molding machines in India has the installed capacity to manufacture 2,000 machines annually, and it plans to start operating at capacity. “Currently, we are manufacturing around 1,100 machines annually,” said N.K. Balgi, president of Ferromatik Milacron India, at the recent Injection Molding and Blow Molding Conference in Mumbai. “The economy is expected to be revived after general elections in 2014, we are expecting growth in the sales with the push in the economy with the new government,” he said. “We are growing consistently in the Indian market and we will focus on capacity utilization with the economic revival post 2014 scenario.” The company claims about one-fifth of the Indian market for injection presses, which is about 5,000 presses annually. Ferromatik India makes machines ranging from 50-3,200 metric tons of clamping force. Balgi blamed the automotive market for the slowdown in machine sales. “(The automotive sector) is down and it is growing merely at the rate of 5 percent compared to more than 10 percent earlier. Automotive is a major segment for us, but packaging and construction industry are growing,” he said. Established in 1995, FMI’s Ahemdabad facility sells machines to customers in 40 countries – including the United States. Recently it shipped a 450-ton Elektron press to a U.S. customer. “We have added all-electric plastic injection molding line for caps and closures and automotive parts in the last six months,” he said. 55

NEWS

Priya Biscuits to open Rs 45 cr plant

ITC targeting Rs 1 lakh crore sales from new FMCG businesses

iversified conglomerate ITC Ltd is eyeing a turnover of over Rs 1lakh crore from its non-cigarette FMCGbusiness by 2030, chairman YC Deveshwar said. Addressing the company’s 102nd annual general meeting, Deveshwar said ITC is on the path to become India’s largest FMCG company without taking into account its cigarette business. “This is evidently an audacious aspiration and one that may not necessarily be realised in my own lifetime. I, however, wish to place ITC firmly on the path to such accomplishments,” he said. ITC’s non-cigarette FMCG business currently comprises of packaged food, personal care, education and stationary products, agarbaatti, safety matches and also includes its two lifestyle retail ventures Wills Lifestyle and John Players. This business had crosses Rs 7,000 crore revenue in the last fiscal, ending March 31, 2013. Deveshwar said ITC’s newer FMCG businesses growth has been rated by a recent Nielsen report to be the fastest

among the consumer goods companies in India. Brands like Aashirvaad atta and Sunfeast biscuits have already garnered annualised consumer spends of over Rs 2,000 crore each. The Classmate brand of notebooks and scholastic products has notched up consumer spend of Rs 1,000 crore, while Bingo!,Candyman and Vivel are estimated to over Rs 500 crore each. While Aashirvaad is the market leader in packaged atta segment, Sunfeast Dark Fantasy has emerged as the market leader in the premium cream biscuit category. In confectionery, Candyman too is a leader while ITC’s instant noodle brand Yippee! is the second largest. Talking about the cigarette business, Deveshwar said India is perhaps the only country in developing world where domestic brands have been able to outclass any foreign brand by a long margin. “The threat from foreign brands, however, is growing due to exponential growth of contraband cigarettes induced by the high rates of central and state taxes,” he said.

Indian brand making one of world’s best-selling biscuits

know the company as Parle G now - it’s that big a brand now”, says the company’s executive director Ajay Chauhan. He said the firm had managed to hold the price of their biscuits between 1996 and 2006 - but then had to raise it due to the rising cost of raw materials. However, the company went on to experience higher growth from the mid-2000s, Chauhan added, which he put down to people’s having bigger disposable incomes.

Oil & Food Journal Vol. 08, Issue 10, August 2013

Cookie federation to invest Man eyes Rs. 3,000 cr outside state bigger bite of market

he Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul brand of milk and milk products, is looking to increase its foothold outside Gujarat, aiming to invest Rs 3,000 crore over a period of two years in setting up “ultra-modern” dairy plants and increasing milk procurement from farmers in other states. The apex organisation of dairy cooperatives in Gujarat, GCMMF, is looking to set up base in states such as Uttar Pradesh, Haryana, West Bengal, Maharashtra and Rajasthan and plans to set up five dairy plans in Delhi, Kanpur, Kolkata and Lucknow, apart from five new plans in Gujarat. It is also exploring the possibility of setting up facilities in Guwahati and South India, where it still does not have any presence yet. “We are looking to set up ultra modern dairy plans in these states in the next two years and also cre-

ate a chain of farmers locally from where we could procure milk for these plants. We are also trying to explore the possibility of setting up a new plant in Guwahati and start facilities in the south,” managing director of GCMMF RS Sodhi said. The GCMMF is also set to foray into the US market, where it plans to open and operate a dairy plant together with the Kaira District Cooperative Milk Producers Union Limited, popularly known as Amul, and a local dairy. The plant, to be set up in New Jersey, will manufacture ghee and paneer. Sodhi said at least 5 lakh farmer families outside Gujarat will benefit from Amul’s foray outside the state over the next two years as the dairy co-operatives will depend on them for at least half of the total milk consumed in the markets outside Gujarat. The other half will be transported from the state itself.

DS group enters dairy market, with ‘ksheer’

he Dharampal Satyapal (DS) Group, a Rs. 3,350-crore diversified business conglomerate is entering India’s fast growing packaged milk market with its own brand “Ksheer”, to compete with the likes of Nestle, Britannia and Amul. “We are betting big on the dairy and milk business. In the coming months, we will expand our range of dairy products,” said Rajiv Kumar, vice-chairman of DS Oil & Food Journal Vol. 08, Issue 10, August 2013

Group. He said the company is taking calibrated steps to cement its position in the organised dairy market, which is growing at 7% a year and is expected to touch Rs. 5 lakh crore by 2015. Initially the “Ksheer” brand would offer milk in the UHT (ultra high temperature) category. By 2014-15, DS Group would offer poly-packed milk as well. UHT has a shelf life of around six months.

NEWS

Gujarat co-op milk

ookie Man has expanded its product kitty to include muffins, brownies, macaroons, doughnuts, puffs and ice-cream. The cookie brand also plans to sell pastries and a few other products in the next couple of months, said Anupam Saluja, CEO, Australian Foods India Pvt Ltd, which owns the Cookie Man brand. The brand currently sells around one and a half tonnes of cookies every day through 62 stores across major cities in India. Of these, 28 are company-owned outlets while the rest are franchises. Another 14 stores are due to come up in the next few months. “Our expansion will be a mixed model. At least 20 per cent of the new stores will be owned by the company,” said Saluja. Cookie Man also plans to set up shops in neighbouring countries. It recently entered Bangladesh with a franchisee store. “We are also looking to get into Sri Lanka very soon,” he said. Motivated by the lack of freshly baked branded cookie players, Cookie Man entered India in 2000. Subsequently, Paracor Capital Advisors, S.B.P. Pattabhi Rama Rao and his family members, who brought the company in, acquired the brand rights for India and the subcontinent. The Rs 15,000-crore organised biscuit market is dominated by Parle, Britannia and ITC. The market for freshly baked cookies is very small Cookie Man is the only pan-India brand. There are also some regional players, such as Karachi Bakery in Hyderabad.

NEWS

The most chocoholic countries in the world in 2012

n the nation with the world’s biggest chocolate consuming habit, the average resident eats the equivalent of 240 bars a year. And given that it’s the seat of confectionery giants Nestlé and Lindt, it comes as no surprise Switzerland is home to the most devoted chocoholics in the world, where per capita consumption averaged about 12kg in 2012. That’s according to data from Leatherhead Food Research compiled by trade publication Confectionerynews.com. Rounding out the list of top chocolateconsuming countries are Ireland, the UK, Austria and Belgium. The US falls in at No. 15. Given that chocolate is considered a small luxury, it’s no wonder that the majority of the top 20 countries boast a large middle class population with higher disposable incomes than the rest of the developing world, the report points out. Meanwhile, though it doesn’t come close to cracking the top 20 list, India has emerged as the fastest-growing market for chocolate, with sales doubling from US$418 million (RM1.36 billion) in 2008 to US$857 million in 2011. Per capita consumption in India was 70g in 2011. But as pointed out by market research group Mintel, that just means potential for growth is high in this booming economy, where the appetite for premium, luxury goods shows strong growth. Where the sweet stuff is having difficulty making inroads, however, is China, a country where palates are more accustomed to salty, savoury foods over sweets. According to Euromonitor, the average Chinese eats a modest 100g of chocolate a year — or the equivalent of two chocolate bars. Growth in the market is also projected to increase a lukewarm 10 per cent to 2015. While chocolate is an everyday treat in the Western world, chocolate makers like Italy’s Ferrero Rocher and Belgian brand Godiva are pitching the confectionery as a premium product ideal for gift giving.

Cadbury to invest $163m in new Indian factory

onfectionery brand, Cadbury, has plans to build India’s largest chocolate producing factory in the southern state of Andhra Pradesh. Mondelez International is set to build its biggest manufacturing unit in the AsiaPacific. According to the Wall Street

Journal, the facility will also be Mondelez International’s (Cadbury’s owner’s) biggest manufacturing unit in the AsiaPacific. The first phase of the facility is expected to be completed by the middle of 2015, with the whole project finished by 2020, by which time close to 1,600 new jobs will have been created. Cadbury, which already has five factories in India, is investing in the new facility as part of its efforts to capitalise on India’s middle class’ increasing spend on beverages and processed foods.

Pabrai’s natural ice cream to go pan-India

olkata-based ice cream brand, Pabrai’s Fresh and Naturelle from the stable of KN & Company, presently available through 20-odd outlets in eight cities — Kolkata, Delhi, Bangalore, Hyderabad, Chennai, Sur-at, Jaipur and Siliguri — has now plans to open another 30 outlets across the country by the end of the this financial year. The 28-year-old Kol-kata’s home-grown ice cream company, which earlier had

popular mass market ice cream brand, Tulika’s, is also plans to take its 100 per cent natural ice cream overseas. “We have been receiving franchise enquiries from countries like the US, Canada, UK (London), Australia, Indonesia, Sri Lanka, Singapore, Dubai and Kuwait. And we are actively considering them,” Kunal Pabrai, founder-partner, Pabrai’s Fresh and Naturelle, told

VDMA: Germany machinery orders up 14 percent

rders for German plastics and rubber machinery rose 14 percent in the second quarter, after several months of decline. “Although the first half year as a whole still shows a 6 percent decline, the industry is pleased to report that in the last three months incoming orders have picked up again after a year of negative growth,” said Ulrich Reifenhäuser, chairman of VDMA, the trade group that represents German plastics and rubber machinery makers. The 6 percent quarterly growth means total sales for the first half of the year now match the sales for the same period in 2012, according to VDMA. The group says exports rose 9.7 percent over the March-May period. China, India and Turkey showed substantial growth rates, while the upward trend in exports to Russia and the United States continued. VDMA plans to give a more detailed breakdown of the industry at the K show in Germany in October. Oil & Food Journal Vol. 08, Issue 10, August 2013

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From L to R- Sitting line-Pradeep Chona (Havmor), Rajesh Gandhi (Vadilal), G Chandramoghan (Arun), Govind Shah (Scoops), Simon John (Lazza), CK Bhardwaj (Cream Bell) Standing line-Samrat Upadhyay (Secretary General IICMA), Firoz H Naqvi (Chief Coordinator IICE), Yadish Chandra (Cosmos), Sudhir Shah (Cream Stone), Charanjeet Singh Basant (Basant), P. Jayaram (Joy), Bala Raju (Dairy Day), Arun Ramani (Top n Town), Ajay Reddy (Jumani)