Final oil & foods december 2013 by Advance Info Media & Events

th ANNIVERSARY

Competitive, Pg 15 comprehensive and credible The Indian Snack Industry

Innovations presented in unity Pg 24

Sustainability In Tea Industry: An Indian Perspective Pg 28 Nanotechnology marvel in Agriculture and food Pg 37 processing Mechanization of PANEER production process Pg 44 OUR VALUE PROPOSITION

WEIGHBRIDGE

INCOMING MATERIAL

LAB BALANCE

BATCHING SYSTEM

QUALITY CONTROL

MULTIHEAD WEIGHER

PROCESS

PACKAGING MACHINE

WEIGHING

CHECKWEIGHER

INSPECTION

X-Ray

DETECTION

Confectionery Market in India: An overview Pg 52 SHIPPER WEIGHER

SHIPPING

ISHIDA INDIA PVT. LTD.,

382, Ground Floor, Udyog Vihar, Phase-II Gurgaon 122 016. Haryana Tel: +91 - 124 - 3854392, Fax: +91 - 124 - 3854393, www.ishidaindia.com E-mail: sales@ishidaindia.co.in

South: +91 937915123 West: +91 7738127000 East: +91 9332003100 North: +91 9350839018

We have a strong base of knowledge and trained teams Pg 56

GAIN

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Pre-Cleaner SAB - 5 - 50 TPH

Silo Separator SAC - 5 - 50 TPH

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Bucket Elevator EL - Up to-200 TPH

Laboratory Cleaner LC - 100-150 Kg/hr

Modular Cleaner SP 1500 - Up to 100 TPH

Modular Cleaner CC - Up to 200 TPH

Ace Services 245-12-13

Hi-Cap Destoner Ds - Up to 4 TPH

Fine Cleaner UB, UB/4 - 1.5 - 4.5 TPH

Vol. 09, Issue 02, December, 2013

capacity: 500-1,500 kg/h capacity: 900-3,000 kg/h

FAM ILC.2 capacity: 1,000-10,000 kg/h

When cutting food, make sure you’ve got the right solution.

FAM has its own test lab, stock and service department in India and is based in Bangalore. For more information or a free cutting trial, call us +91 80 4113 3783 or visit our website www.fam.be FAM INDIA - MTS P.L. #305, ‘B’ Block, Mittal Towers M.G. Road, Bangalore - 560 001 phone + 91 80 4113 3783 mobile: +91 98451 45698 fax +91 80 2555 0098 www.mtsfoods.com - famindia@vsnl.net

TEST LAB FAMINDIA - MTS No.4, B&F Block, Palm Grove Road, Austin Town, Bangalore - 560047. phone: +91 80 2530 2422

FAM and Dorphy are registered trademarks of FAM NV

Whether you are a smaller or starting food processor who needs to change over from one application to another in just a few minutes, or you are cutting continuously and you want a consistent and perfect cutting result? Look no further, with more than 4,000 operational machines worldwide and over 1,000 different applications, FAM has the right cutting solution for you. 20 different standard models of reliable, flexible and hygienically designed cutting machines that can be adapted to your own specific needs.

cutting edge solutions for food

Vol. 09, Issue 02, December, 2013

Editorial From the Desk of Editor

Vol 09, Issue 02, December 2013

tâ&#x20AC;&#x2122;s just a year from completing a decade. Oil and Food journal was born as a result of my zeal towards the advancement and development of the food processing industry. When and where this interest and curiosity about the food industry emerged, I do not know, but what I do know is that there is a passionate drill to make this dream of mine to be the best. Oil & Food Journal from the house of Advance Info Media & Events has turned nine this year and in all these years it has witnessed the ups and downs of the food industry. Nevertheless one thing that was very intriguing as well as aspiring in all this nine year was the up goings growth graph of the Indian Food Processing Industry- regardless of recession, slump or any other negative impact. This journal was started with a vision to uplift the Indian food processing industry. It was produced with thought to bring to the people true information and facts regarding food processing and allied industry. Along the growth of the food & beverages industry, various magazines, fortnightly and journal came up in the race, but my view and focus for oils and food was rigid and at the same time supple â&#x20AC;&#x201C; I along with my team kept a different, positive and factual perspective of the industry with in-depth analysis being our core point. Every subject we touched had been deeply analyzed and determined. We did all our research thorough not leaving any stone unturned. I am proud that that all this hard work and dedication today has paid fully with debts and duties. This publication has not only survived the so called bubble of recession in Indian food processing industry but also the global recession period. Humorously it has a fight streak in it. I would like to snatch this opportunity to especially thank all those companies, organisation and sponsor who offered advertisement for oil & food journal without hesitation. I believe it was their trust toward our good journalism that made them not even have a second thought about venturing their ads with us. Definitely these adverts from Indian and global and multinational companies have been the major source of our income. Nine years of journalism in the food industry showed us many paths, and along this way we brought out the fortnightly newspaper- The Beverages & Food Processing Times- which became an instantaneous hit and still number one in its category with different taste of coverage. Advance Info media Group has recently introduced two new bi-monthly newspapers Ice Cream Times and Biscuit & Bakery Times. Response to both the fresh newspapers has been phenomenal ever since first issue. A grand news portal is in making and soon you will see most informative place online, www.agronfoodprocessingindia.com, latest entry from our group of publications. The circulation of all magazines and newspapers has been increasing with a growth rate of 20-25 percent per year but being an environmentalist at heart, I decided save papers, thus introducing e-versions of the publications 4 years back. All publication are available for viewing on the internet using any computer device and smart gadgets such as, smart phones, tablets, laptops, etc. This has clearly appealed to our readers and thereby increased the sum of our readership not only in India but across the globe. The quality of journalism we practice has not only enticed our domestic readers but also the sub continental clients. Readership is also growing from European, Americas and Middle Eastern Countries. The journey has not been an easy one; a lot of hindrances and blockages have been there, but with our hard work and enhanced quality, all magazines and newspaper produced by Advance Info Media has become a favorite among its readers. I need to thank all my family and friend to be there with me in this adventurous journey and keeping up with my mood, absences and late nightsâ&#x20AC;Ś..well it has paid off and in the best way. Thank you all especially- my parents, wife and my adorable daughters and above all my readers. firoz h naqvi 8

Vol. 09, Issue 02, December, 2013

Contents Pg 15

Competitive, comprehensive and credible The Indian Snack Industry Pg 24

Innovations presented in unity Pg 28

Sustainability In Tea Industry: An Indian Perspective Pg 37

Nanotechnology marvel in Agriculture and food processing Pg 44

Mechanization of PANEER Production Process Pg 52

Confectionery Market in India: An overview Pg 56

We have a strong base of knowledge and trained teams Jyoti Bhasin Vol. 09, Issue 02, December, 2013

Vol. 09, Issue 02, December, 2013

METAL DETECTION SYSTEMS in compliance with HACCP Principles and Application Guidelines

Manufactured by:

Arezzo - Italy

FOOD series: Model THS - 21E / 21 / MS21 PACKED / UNPACKED: (Conveyorized) Processed Food - Chicken, Meat & Fish (IQF / Frozen / Raw / chilled), Biscuits, Noodles, Icecream, Desserts, Salads, Cheese, Yogurt etc. POWDER & GRANULES: (Gravity feed) Potato Chips. Namkeen, Basmati Rice, Dehydrated - onion / herbs / vegetables, Chocolate, Cocoa powder etc. LIQUID / VISCOUS / PASTE: (Piped) Tomato - ketchup / sauce / puree, Meat Extrusion (Sausages), Honey, Jam, Fruit Pulp, Chocolate Paste, Skimmed milk etc.

PHARMACEUTICAL series: Model THS - PH21 - E / N Tablets, Capsules, (API) Powder / Granules, lozenges, dragees etc.

Also available - Metal Detectors suitable for TEXTILE / TYRE / MINING / PLASTIC and various other industries & applications. Exclusively Represented in INDIA:

SNS Pro-Pack Equipments Pvt. Ltd. B-904, Sneh Bandhan, Off E.E Highway, Mulund (E), Mumbai: 400081 INDIA Tele-Phone: +91 22 65013015 / 9820303233 Tele-Fax: +91 22 2563 8024 Email: Neel.Desai@technoptions.org Web-site: www.technoptions.org

Other offered systems: • TABLET & CAPSULE - COMBI (Deduster + Metal detector) & distribution systems from PharmaTECH, Belgium • Dimensional Sorting machines from: MASCHINPEX, Germany • Optical / Camera Inspection machines from: CONVEL – Italy • BAG-IN-BOX complete lines from: PATTYN – Belgium Manufactured in INDIA: • Thermo Regulators for Batch Process (-80 to 250 deg.) • Industrial Water Chillers, Chest Storage Coolers • Air-Cooling Tunnels for biscuits, chocolate, wafer etc. 12

Vol. 09, Issue 02, December, 2013

Your eye to the future Beverage

�ispensing��ending - Dispensing Solutions for Beverage - Vending Equipments - Kegging Equipments

Food

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- Empty Bottle Inspectors - Fill Level Inspectors - Laser Coders - Metal Detectors - Checkweighers Packaging - Complete Bottling Lines - X-Ray System - Labellers Process - End of Line Packaging - Hydro Optic Machines Disinfection System

ACE Vol. 09, Issue 02, December, 2013

223, Blue Rose Industrial Premises CHS Ltd., Opp. Magathane Bus Depot, Western Express Highway, Borivali (E) Mumbai - 400 066 Tel.: +91-22-28700281 / 42089211 Fax : +91-22-28704108 Email : acetechnologies@vsnl.net Website :www.ace-technologiesgroup.com, www.acetechnologiesgroup.com

Technologies 13

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.

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

Vol. 09, Issue 02, December, 2013

The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category of consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.

Competitive, Comprehensive and Credible

The Indian Snack Industry OUTLOOK OF SNACK MARKET The snacks market is classified into two broad segments - Western and traditional snack segments, wherein western snacks enjoy more popularity in comparison to the traditional snacks. Moreover, the western snack segment is dominated by large number of MNCs and organized snack manufacturers. According to Takayasu Yamada, Managing Director, Ishida India, India, the snack market in India is viewed as one of the largest in Asia pacific regions. Its growth seems to be unstoppable and the organised sector will continue at the rate of 15-20 per cent per annum. Though the, per capita snack consumptions in India is still relatively low in comparison to that in western countries such as U.K and U.S. This is not because people in India tend to consume less snack food but because there are still a variety of socioeconomic constraints that are keeping the explosive growth in check. Vol. 09, Issue 02, December, 2013

But things are changing in a positive direction in India, like; • Diet pattern become more westernized as more western food cultures are immersed into society • more unorganized sector are converted into organized sector • more traditional Indian namkeens start being manufactured in organized sectors • Income level of consumers further increase • Distribution chains and infrastructure are further improved. The foremost Factors driving the growth of the snacks market in India include higher disposable income leading to greater spending power by consumers, rapid urbanization leading to busy lifestyle and subsequent inclination of consumers toward packaged food products and aggressive marketing campaigns by all the players to break the product clutter and attract consumers towards their brand. 15

In addition to these, other factors include growing working women population, fast expanding retail network and the convenience factor associated with snack consumption. Pradeep Kataria, Managing Director, Saurabh Flexipack Systems Pvt. Ltd, put in that ‘The Indian snack and namkeen industry is expanding tremendously with most adopting the latest technology and high speed packaging machines. He said that the snack industry is appreciating the value of technology and speed in packaging machines’. In the initial years, snack and namkeen market were dominated by two players - traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Eventually however, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Today, the market is dominated by PepsiCo with of its massive product portfolio. Other major players

Cover story need of their product presence at Retail shelf, he added.

Pradeep Kataria, Saurabh Flexipacks Systems P Ltd, Pune. “The Indian snack and namkeen industry is in expansion mode and everybody is adopting latest technologies and high speed packaging machines. It’s really appreciating that now everybody understands the value of technology and speed in packaging machines. Now packs per min. is the for most criteria for processors as processing capacities are same but weight per packet has been reduced so more number of packets to be produced by the snack food companies.” include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players. Giant brands like Pepsi have a huge consumer base and Neel Desai, director, SnS Pro Pack particularly believe that this is advantageous as the local brands step-up their facilities in comparison to big companies like Pepsi. Companies like Pepsi represent best facilities and very strong financial backgrounds and thus Quality standards set by them are very high. It’s the brand image that these big giants are more concerned about and hence never compromise on quality and service; they set an appreciable example for our local and upcoming manufacturers. Desai further adds that it is also important at the same stage, as an advantage, Indian manufacturers enjoy local reputation and need to take major advantage of this fact to keep themselves in competition with the international brands – of course it remains a fact that the raw material, water and employees, used

by the international brands, would remain Indian always. The Indian snack industry has spread its wing explicitly and therefore there is deep penetration of snack Industry even to rural market now, due to exposure through media”, says R J Rayanada - GM, Nichrome India Ltd. The huge market and variety of products is strength of Indian snack food Industry as our population is habitual of tasting different recipe which keeps on changing after every 150kms of geographical distance. Rayanade also said that, “The retail revolution is one great reason that is renovating some local brand to organized ones. These small players have

SNACK PACKAGING Packaging of snack has become an integral part of life, as no product can be delivered safely without the package. More products are being launched in the market, due to the consumer demand. Lifestyles are changing in urban India, with an increasing population of working people. There is a lot of demand for packed food products. Unlike the developed countries, the growth is in its positive phase, and it has not reached the saturation level. The food packaging industry is driven by the developments in technology in the field of packaging materials, food science and information technology. The demand for consumer convenience is satisfied using the technology, be it economy packs, new products or smart packs. Good cost/ benefit ratios are achieved by methods like replacing thick mono-layer materials with thinner multi-layer materials or with compact packs to reduce the distribution cost. Kataria of Saurabh Flexipack told that the intellectual packagers are now converting to best packaging machinery but still there are many cost conscious members who compromise with the benefit of using technology and are still using old style machines thus bearing huge hidden losses. Players in the unorganized sector or in manufacturing setup of smaller capacity are less aware of the latest packaging

realized the 16

Vol. 09, Issue 02, December, 2013

Cover story

technologies thereby pertain to old machinery, said Yamada. “Even though one may be aware, we understand that it is quite difficult for them to justify higher initial investment cost in terms of ROI”. But he asserted on the fact that, once the production capacity reach at certain level, it is quite easier to get a return on investment even against costly equipments, particularly in high-premiumproduct segments like Potato Chips. Sanjeev Gupta, Director, Kanchan Metals, one of the leading snack food solution provider comapnies adds on this by stating that, Investments in latest machines and technologies is related to size of market presence. However, the big brands are educating the Industry of the availability of these machines and technologies and its positive effects, so it’s time for the unorganized industry to gear up and enter the competition. Packaging Machinery Till date in India there are very limited attempts to experiment different pack formats which should change with times, remarked R J Rayanade. The emphasis is presently given only on typical chain of packs. The new format solutions like Doypacks, stabilo packs, Penta seal packs, Doypack with re-closable zipper are other Vol. 09, Issue 02, December, 2013

options available in India to be taken up. Also brand power is becoming equally important for the snack industry to attract the consumer and update its product value. Branding of snack packaging definitely calls for high output solutions and the packaging manufacturers are geared up to meet this challenge. The Intermittent operation machines are being phased out due to limitation on outputs and new series continuous operation machines are being used by snack industry, added Rayanada. The high end and medium size players are definitely looking for shift in using high speed machine to cater high volume of single serve sachets for one time consumption. The limitations of conventional machines related to quality of seal, leakages in distribution & loss of Nitrogen from the pouch are serious issues with low priced local machines. The customer awareness on this front is on rise and such leaky packs are not accepted by customers in the market. The indirect losses incurred by manufacturers on this account are huge and snack industry is trying to address such issues through use of quality machines available in the market.

Packs per minute Packs Per minute is the first thing that comes in our mind, when a processors looks for a packaging machine for snacks and namkeens. This is a very important criterion in selecting equipments. Those who are looking at continuous future expansion along with market growth, maximizing the productivities in a least given space is a significant element for them, which is fulfilled by packs per minute. Earlier among snack products, potato chips was considered as a difficult-to-handle products since gaining higher packaging speed on this product was challenging due to the nature of products being light, bulky and its non-uniformity in size. 55-60bpm was somewhat maximum achievable packaging speed back then. However, the technology has gradually advanced and has brought up the achievable packaging speed up to 90bpm and, then to 110bpm... Today, with the latest technology, nearly 150bpm can be achieved. Yamada. Nonetheless, thinks that it is very important to see the actual productivity instead of a simply stated figure of “packs per minute.” The actual productivity means the operation efficiency of the equipments as there is always a downtime in any equipment. He explains that, product change-over, film change-over, machine errors and operator errors etc are common signs. Ishida has long strived for designing and manufacturing the equipments that require “The snacks & namkeen FBOs are proactive & few of them initiated the process of compliance to the regulations laid down by Food Safety & Standards Authority of India. But I would say it is not sufficient. Everyone should initiate this process. If FBO thinks let us wait & watch & later I will implement the system, it would be too late. Not only from the business sustainability but also from the consumer point of view, all FBOs shall take lead & start implementation. We have been continuously chasing the FBOs to initiate this but is postponed due to various reasons & changing priorities.”

Sanjay Indani, Q Safe, Mumbai 17

Cover story less down-time in change over, that gives less machine errors and that is userfriendly and less operator-dependent. Nevertheless Kataria views are that pack per minutes are the first criteria of processors as processing capacities are same but weight per packet has been reduced so more number of packets to be produced so packs/min becomes the main criteria. CONTIBAGS of Saurabh Flexipack Systems Pvt. Ltd has a capacity to deliver up to 120packs/min which is highest among Indian packaging machines. The Nichrome Snackpack machines are offering output of 100 packs/min for potato chips and in case of Namkeens Twin Head Namkeenpack Machines which offer 200 packs/min. Rayanade informed that, “Nichrome’s HFFS series machines offer pack format flexibility like 3 side seal pack, 4 Side seal pack, Doy pack, Doypack with Zipper and in addition the Euro cut for retail friendly display is offered on these formats. On the other hand their VFFS machine equipped with customized Weighing system offers on line dispensing of customized mixtures with different proportions. Such flexibility is unavailable even in Multi-head weighing technology, he Informed. PACKAGING SAFETY IN THE SNACK INDUSTRY

“The product quality and safety standards set by the international manufacturers are too high and obviously Indian manufacturers, who already struggle with the cost-factor – but there are exceptional cases that can be referred as well surely. Today our Indian brands like Haldiram, Balaji etc. have grown over a period of time beyond imagination and we have seen these organizations adapting the newer technological advancements, whenever made available, and they are surely giving a tough competition to the western brands not only within Indian market but internationally as well.” Neel Desai, SNS, Mumbai Though there is no specific regulation pertaining to snacks, quality standards laid by FSSAI has to be followed by the industry players. Also the packaging safety issues have to be dealt with utmost concern by the snack industry. It has to follow the food packaging regulations given by the governing bodies to prevent food contamination. With continued efforts, the food packaging industry is constantly trying to improve the shelf-life using new technologies like vacuum packaging and modified atmosphere packaging. Active packaging is used to improve the shelf-life further by monitoring and modifying the headspace, continuously using absorbers and releasers. Self-heating and cooling packs are being developed for on-the-go snacks. Intelligent Packaging is one more field where lots of developments are happening. Intelligent packaging uses smart devices like labels or tags attached to primary or secondary packaging to communicate information about the pack. Freshness, leak, gas and microbial indicators give information 18

about package integrity and safety. Electronic identification tags can be coupled with indicators to automate sensing of information. As the world is moving towards sustainable development, the pressure is on the packaging industry to go green. Sustainable development gives the guiding principles for meeting the needs of the present without compromising the ability of future generations to meet their own needs. Technically India has every latest food safety technologies available in the country for snacks and namkeens. But how many processors are aware and using them in India? There is always a scope of improvement. Surely, brands like mentioned above, bring in not only their high quality products but at the same time bring in the latest technological advancements along with them thus assuring very high quality of end product. This should encourage their competitors to implement these advancements in to their process as well. Most of the time it such happens that, a newer technology may or may not be directly accepted by our local manufacturers but the trend is that if the same has been proven with bigger brands then our local/Indian manufacturers adapt them easily and much faster. Yes, at times Indian manufacturers may not accept changes as we are traditionally and emotionally attached to our methods and procedures – but when Vol. 09, Issue 02, December, 2013

Cover story the time comes for expansion one needs to take in to consideration the technical advancements made available and adapt them successfully in to the production line, of course without compromising on your product values. Sanjay B Indani, Head Food Safety, QSafe Consultants, enlightened that the players in this industry are operating in generations. Few of them have upgraded their systems and few still rely on traditional methodologies. Equipment wise the industry has gone lot of changes and modernization in last few years but still many have not opted for that due to variety of reasons. The industry rely on traditional methods the industry is labor oriented it faces the challenge of complying with personal hygiene issues. If we have to put it from the perspective of Indian legal requirements many industries would fail to comply in following aspects of food safety requirements. Outline of food safety needs in snack industry Layout-flow & segregation of materials: the industry has seen tremendous growth in last few years as a result of changes in food consumption pattern & acceptability of Indian snacks worldwide; units are operating with higher capacities in available limited space. Thus faces tremendous space constraints due to higher production capacities. The space management, variety of SKUs, etc result in the wastage & spoilage of raw material,

“There are very few snack Industry players who are using latest packaging technologies or attempts are limited to experiment different pack formats which should change with times. The emphasis is presently given only on typical chain of packs. The new format solutions such as Doypacks, Stabilo Packs, Penta Seal Packs, Doypack with re-closable zipper are other options available in India. The need of Brand differentiation will now force all leading players to opt for such changed formats.”

finished product packing material. The RJ&Rayanade, units does not Nichrome, comply to the requirement of Pune unidirectional flow, proper segregation of materials, storage & layout requirements. Facilities: There are a lot of units where there are no adequate facilities required. This may be due to space constraints. The facilities required shall include changing room, separate toilet facility, and hand washing station and dining area. Units are struggling to fit all these in the facility. Many have started working on it to comply the requirements. Personal hygiene: Food handlers (Workers, supervisors, technicians & even mangers & owners) need to follow personal hygiene requirements. This is not a rocket science “The Snack Industry is in expansion mode and huge amount of CAPEX is happening. It is growing @30 per cent annually and for the last few years it is sustaining this growth rate. I feel a lot of consolidation will take place and in fact has already started happening. The big brand owners are expanding their reach Pan India and tying up with smaller manufacturers to make their brands. This will lead to expansion of big brands and shrinkage of small brands. Hence, the producers have to be in large capacities level to be able to sustain the growth in the market.”

Sanjeev Gupta, Kanchan Metals, Kolkata Vol. 09, Issue 02, December, 2013

but industry has this as one of the major challenge. The biggest problem is attitude of the food handlers. Unless the mindset is changed the compliance is very difficult & it will happen through consistent efforts of the management to make this mandatory in the unit. Many think that during inspection we will comply with the requirements& then leave it. This gives liberty to the food handler not to follow the necessary requirements. This aspect should be taken on priority by all FBOs for implementation and strictly adhere to. Simple aspects are very important like washing hands (using soap & water) after visiting toilets or before starting the work, keeping nails short, not using jewelry, not permitting tobacco or gutkha, providing them hair nets (head gear), apron & gloves where required, etc. This will prevent cross contamination of the finished product. This looks very simple but one of the tough tasks to implement in the food industry. Management should work along with food safety expert to make this happen in addition to making it mandatory to be followed every time in the unit. Cleaning & housekeeping: Deep cleaning of the equipment being used in the process. The industry should follow rigorous cleaning methods to ensure that the food residues are removed from the machineries and equipment Additional efforts required in this area as industry uses lot of oil for manufacturing process. It is inevitable that the oil

Cover story

Takayasu Yamada, Ishida, Gurgaon â&#x20AC;&#x153;We have observed a rapid growth of snack industry in India over the past 10 years. Today, the snack market in India is viewed as one of the largest in Asia pacific regions. Its growth seems to be still continuing and accelerating. It is assumed that the growth in organized sector will continue at the rate of 15-20 per cent per annum. In contrast, per capita snack consumptions in India are still relatively low in comparison to that in western countries such as U.K and U.S. We think that this is not because people tend to consume less snack food in India but because there are still a variety of socioeconomic constraints that are keeping the explosive growth in check. These constraints are bound to change, however.â&#x20AC;? spillage, oil residues will create layer on the equipment leading to accumulation of dirt and dust. This should be regularly cleaned effectively. Most of the places usually do this superficially, to remove flour and other visible residues leading to accumulation of food particles on the equipment where there could be growth of infestation or mold & micro-organisms. Cleaning shall be given priority by the FBO to keep the machines, equipments, floor area clean and tidy. The cleaning of areas should include cleaning of floors, mezzanines, doors, windows, stores, crates, pallets, drums, etc. Pest control: This is one of the grey areas in most of the units. Pest of various types affects the process and product, which includes rats, rodents, lizards, flies & crawling insects like ants and cockroaches. Each pest needs different treatment and control. It not only contributes to food safety issues but also increases the process loss. Industry assigns external agency for this activity but forgets to monitor & verify the activities done by the pest control agency

and claims that all efforts to control pest are non-effective & waste of money. Unless this activity is monitored and verified by the organization themselves the effectiveness of pest control cannot be seen. Traceability: Traceability is to be maintained so that finished goods can be traced back till raw material and to supplier through the batch coding throughout the process. Once the material is received, it needs to be identified & traced through the record keeping or an ERP based program. This also ensures the FIFO (First In First Out). It is one of the important legal requirements to be complied with. Unless this stock identification & rotation is implemented for raw materials, packing materials & finished products, industry cannot adhere to three requirements like Traceability, FIFO and Product Recall. Industry need to work on this aspect religiously to bring it to 100% compliance. Labeling compliance: Most of the industries are alert on this but need continuous guidance and verification 20

of labeling compliance. We assist industry to comply to labeling requirements through verification of labeling once in a year & providing updates to the industry & making them alert well in time to initiate actions on their end. Another food safety hazard is the selling of modern and traditional styles of snacks in the open market, branded and nonbranded too. To counteract this, the FSSA management should initiate the process of compliance through GMP-GHP (Good Manufacturing Practices & Good Hygiene Practices) implementation as required by food safety regulation under Schedule-4 requirements. A planned a phased implementation program should be put up to avoid financial burden and to achieve continual improvement in the hygiene of the unit. The snacks & namkeen FBOs are proactive and few of them initiated the process of compliance to the regulations laid down by Food Safety & Standards Authority of India. But that is not sufficient reverts Indani, he stresses that everyone has to contribute to initiate this process. The product quality and safety standards set by the international manufacturers are too high and obviously Indian manufacturers, who already struggle with the cost-factor need to compete in order to be in the rat race â&#x20AC;&#x201C; but there are exceptional cases that can be referred as well surely. Today our Indian brands like Haldiram, Balaji etc. have grown over a period of time beyond imagination and we have seen these organizations adapting the newer technological advancements, whenever made available, and they are surely giving a tough competition to the Western brands not only within Indian market but internationally as well. Junk food grappling with global regulations, concerns about trans-fats With growing concern about transfat and its ill effects on human health, the noose is tightening around such products. Regulations from the apex food authorities worldwide and even directions from courts in recent times regarding defining junk food is doing rounds that represent global concern. In this regard, the recent decision by the US FDA to ban the trans fats in processed food is seen as a right step as Vol. 09, Issue 02, December, 2013

Cover story many European countries have already regulations in place to check the trans fats and saturated fats. Countries like Denmark have strict regulations that processed food should not contain trans fat more than 2 per cent. However, the regulations in India are just begun. Currently the Trans fat content is allowed at 10 per cent, which was supposed to be brought down to 5 per cent within three years. FSSAI has rebounded to form a stringent laws regarding transfat, as it has become a great concern for the consumers. But according to Nishant Bansal, Director Fabcon India, Indian companies are already understanding the need for this and making substantial investment / R&D and trials to use alternate fat sources and cooking methods to tackle this issue. The big companies understand the need for being customer friendly and safe. They can sell more only if their product does not affect the consumer adversely, said Bansal. Transfat discussion has been going on in the US & Europe for long. It’s nothing new, it’s just a stage of getting used to the new rules & regulations that one has to adapt as one grows / expands and becomes a part of global community. Bansal feels that, like FDA, FSSAI will help to improve the way Snack Food is made and sold. It’s a winning game for both sides he smiled. Another word associated with snacks is the junk food, Nishant Bansal believes that

this is a definite concern of many house hold with regards to, diabetes, diseases and obesity, especially with kids, but at the same time it’s a double edged sword as everyone are opting for an easy and fast lifestyle, they are automatically turning to fast and ready to eat snacks and food. Adverse publicity does impact the market, especially when these terms are being taught in school as well as used by doctors in a negative sense. However, he wittily added that any publicity is good publicity. And in this case it does increase curiosity

among the kids & youngsters. However, experts feel that the regulatory authority needs to do a lot more in order to bring the content to the level of European countries. Recently on November 11, the apex food regulator of India – FSSAI issued a notification for extension of the deadline for the industry to comply with regulations regarding trans fats and saturated fats, wherein the FBOs (Food Business Operators) have to declare in the label about the total content of trans fat, total saturated fat by weight and total fatty acid by percentage.

“The need to cater to growing demand will make it essential to grow organically & in-organically. Huge companies like PepsiCo, Haldirams, ITC, Balaji and Yellow Diamond are doing the same. They are also looking at CMU model to cut down on distribution costs for a pan-Indian presence. For sure, I see other companies already ramping up production or planning the same. The market is big enough for all of them to grow substantially.”

Now the deadline has been extended till July 1, 2014 This comprehensive feature needs to be ended with the fundamental formula of telling all that food forms the basic necessity for all humans. It’s the change in food habit and culture that’s making the news. The changing demographics and work culture along with the rising youth and new generation has given rise to ever increasing demand for ready to eat food, snacks and namkeen. This is further fuelled by growing organised retail industry that has just set in foot. To sum up, the Indian snacks industry is a stable market at present and has strong growth potential in the future years.

Nishant Bansal, Fabcon, NOIDA Vol. 09, Issue 02, December, 2013

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Vol. 09, Issue 02, December, 2013

Packaging

Author: Philipp Schenker, (Product Manager) Bosch Packaging Technology

Innovations Presented in Unity H igh productivity, flexibility, cost savings and low energy consumption are just some of the characteristics that food manufacturers expect from packaging lines. Recently, the first horizontal flow wrapper Sigpack HCUR with ultrasonic sealing was launched by Bosch Packaging Technology. The machine can be integrated with the Intelligent Transport system (ITS), a new product infeed unit for horizontal flow wrappers. The Sigpack HCUR is based on the established Sigpack HCx machine platform. Equipped with the new ultrasonic sealing technology, the machine produces packages of the highest quality with an output of up to 800 pieces and a maximum film speed of 80 meters per minute. The combination of the

horizontal flow wrapper with the ITS is one of the latest innovations in packaging technology globally. To allow constant production at high speeds, it is essential that products are evenly fed to the film; this proves to be a demanding challenge. The ITS by Bosch Packaging Technology fulfills this requirement. It balances out product flow irregularities, creates defined spaces and synchronizes product and film speeds. The ITS takes over the individual feeding of each product to the packaging machine and replaces the common infeed chain including the interval and acceleration line. Consistent product intervals are generated in traditional methods by braking the interval and then accelerating it again. The ITS uses the same principle 24

but requires less time and storage space. In addition, the system ensures careful product transport of sensitive and nonaccumulating food and confectionery products, such as bars. As a result of a small deflection radius, the ITS can transfer products directly to the packaging material of the horizontal flow wrapper. Despite the compact design, it achieves high output levels. The ITS is a mechatronical system powered by linear motors, in which over 30 carriers are moved independently and wear-free. A programmable logic controller (PLC) monitors and permanently regulates each carrier. In order to fulfill high demands for precision and dynamics, an Ethernetbased real-time bus system is used. This enables the ITS to reach a speed of more than three meters per second. A multiposition detection system ensures that the exact position of each carrier can be determined at all times â&#x20AC;&#x201C; a reference run is not required. While the products are fed into the horizontal flow wrapper Sigpack HCUR using the ITS, the film coming from the machineâ&#x20AC;&#x2122;s reel of unwinder is shaped into a tube and the long side is then sealed using ultrasonic sealing technology, which replaces heat or cold sealing technologies used to date on flow wrappers. In contrast to heat sealing, with ultrasonic sealing the jaws do not need to be preheated, resulting in remarkable amount of energy savings Vol. 09, Issue 02, December, 2013

Packaging

. Instead of using heat, this method joins thermoplastic materials together by emitting high frequency vibrations. The energy required for sealing is only created in the precise sealing area. Another advantage of using ultrasonic sealing is that the infeed system does not heat up. Heat is only developed directly at the jaws. If a machine stops during production there is therefore no risk of products melting, resulting in less product wastage. The ultrasonic sealing technology enables energy to be controlled directly, which allows for a ramp function, meaning the production can be easily stopped and started again. The sealing is done within a specific sealing window for the film and can thus respond flexibly to speed variations in the process. The machine can also be sped up directly from zero to an output of 800 products per minute without compromising the quality of the sealing seams. In the case of heat sealing at such high speeds there may be open or burned sealing seams because cooling or heating up the sealing tools is time-consuming. Another advantage of ultrasonic sealing is a reduction in material costs as it allows manufacturers to use film materials with lower costs. The films required for heat sealing to date can be replaced by thinner, much lower cost films. Ultrasonic Vol. 09, Issue 02, December, 2013

sealing also generates thinner longitudinal and cross seams, which requires less packaging material. Other possibilities for cost savings are created by the much higher processing speeds when using ultrasonic sealing, which enables higher productivity. Bosch’s ultrasonic sealing technology also offers decisive benefits in terms of product safety. In case of contaminations of the sealing seam, the new technology reduces the risk of poor sealing quality. The vibrations generated by ultrasonic sealing equipment displace product remains from the seam area and thus guarantee a secure seal. The use of ultrasonic sealing technology

also benefits the ongoing operation of the machine. The possibility of film sticking to the sealing jaws, the bunching of materials and the production of unsealed packages is lowered. This reduces cleaning efforts and decreases downtime. Because ultrasonic sealing is a cold technology it is not necessary to clean hot sealing jaws, which reduces the risk of burn injuries for the operator. For food manufacturers this means significantly improved operating times and increased operator safety. “Flexibility and high productivity coupled with sustainability are extremely important for our customers. The cost savings associated with using ultrasonic sealing arising from lower energy consumption, material savings and higher machine availability provide much greater freedom of action. The ITS also provides high flexibility in terms of adjusting the production volume,” explained Philipp Schenker, Product Manager at Bosch Packaging Technology. Food manufacturers benefit from using ultrasonic sealing combined with ITS: on the one hand the use of ultrasonic sealing represents a cost- and processefficient alternative to traditional sealing technologies. On the other hand, the ITS offers key advantages in terms of flexibility, speed and space requirements compared to traditional infeed systems. In addition to the stated advantages of ultrasonic sealing technology and the ITS, the machine model Sigpack HCUR provides convenient operating systems with touch panels and user-friendly functions for setting and saving various processing parameters. The machine’s design provides easy access to all of the machine components.

DORPHY

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Vol. 09, Issue 02, December, 2013

SUSTAINABILITY IN TEA INDUSTRY: An Indian Perspective Introduction The tea Industry in India has a 170 years old history. The credit for creating India’s vast tea empire goes to the British, who discovered tea in India. The East India Company after losing its monopoly in China in 1832 has taken up cultivation of Tea in India (Assam) in 1834. The first commercial batch of Tea ever produced outside of China came from Assam in 1839. Since then, tea continues to be the most popular drink in India. From official conferences to railway station, tea (chai) remains the favorite hot beverage among Indians (almost 85% of the total households in the country consume about 81% of the total tea produced). This sector is critical to Indian economy. The Tea Industry is one of the oldest organized firm sectors with a large network of tea producers, retailers, distributors, auctioneers, exporters and employees. India is one of the world’s largest producer and consumer of tea (Table 1 and 2), which accounting for 27 percent of the world production and around 12–13 percent of the world tea export. Tea export from India, estimated at Rs 17.31 billion during FY 2006,

accounting for 0.4 percent of country’s export in value terms, tea ranks as the fourth-largest agro export item from India. The industry employs around 1.27 million at the plantation work and 2 million people indirectly of which 50 percent are women workers (second largest employer in the organized sector after Indian Railway). In, India, there are about 1700 processing units engaged in tea production; while around 1671 big (more then 100 hectares) planters with an output of 700-725 mkg. The estimated 0.141 million small growers have an annual output of only around 237 mkg. India’s large tea plantations are mostly concentrated in Assam and North-Bengal. Assam alone produces 51 percent of the national production. Tea production in India during 2007, declined by 1.2 percent to 944 mkg, in comparison with an increase of 1.1 percent in 2006; but it is expected to increase to around 960 mkg in 2008. Besides, as an agro-based industry, the development of plantation industry has contributed greatly towards rural development and urbanization of remote hilly areas by optimum use of land, opening up road and other communication network in those areas. 28

Ashim Kr. Das

Recent developments Inspite of its importance, tea industry of India is going through a crisis phase since 1990’s. The industry has witnessed many structural changes during recent years, which include – emergence of small tea growers in place of large plantation and introduction of bought leaf factories (BLF). The present crisis has led to the closure of many tea estates (e.g., 20 estates in Kerala, 30 in West Bengal, about 70 in Assam have close down since the late 1990’s). It is estimated that more than 60,000 plantation workers have lost their jobs since 2002 and livelihood of another tens of thousands are threatened. Workers of the running estates are facing wage cut, tougher picking demand, job insecurity and the casualisation of work, appalling living and working condition etc. In early 2005 the tea industry witnessed major companies withdrawing from production and concentrating on the packaging/ retailing sector (e.g. Tata. Tea, HLL etc in India). They intend to focus on brand building business and on exploring the market substantially, rather than on the plantation business, which is a low margin segment. The tea industry in this country has some Vol. 09, Issue 02, December, 2013

Tea inherent weaknesses–due to poor yield arising out of poor condition of the gardens ( more than 30 percent of the tea grown areas being above the economic threshold age limit), defective auction mechanism, old factory setup (which is affecting tea quality and price realization), poor garden management, frequent changes of garden management/managers, in-experienced owners (like traders who have no previous experience in tea cultivation and interest in plantation business) and the management’s excessive reliance on bank-debts with negligible fresh equity infusion. In some of the gardens, the neglect has been due to ownership disputes and diversion of funds from tea gardens to other activities and in many cases strained relationship between management and garden workers (ICRA study 2007) have added fuel to the fire. In the market, the rising competition at domestic as well as international front has deepened the crisis of tea industry of India. The changing world order of last decade has left its own impact on the industry. The coming down of the Berlin wall and the disintegration of the former USSR have led to many changes in industry’s export market. The first, second and the third world are moving towards free globalized economy, where free trade and free flow of investment funds are the order of the day. Consumers in the developed world are moving towards healthier products and quality assurance which put pressure on the export of tea from India. Shift in the composition of demand for tea in the importing countries has had unfavorable effects on export earnings from tea in India. The international market price of tea has declined from US $ 2.09 to US $ 2.03 per kg in between 2005 and 2006. Though countries like Sri Lanka, Kenya and Indonesia are growing fast in their export and higher price realization, during the same period. Export of tea from India to some of the major importing countries like Russia, UK, and USA are showing a sharp decline. (Table 3). Although, per capita consumption of tea in India is amongst the lowest (64 grams), but in volume terms India is the largest consumer. Since 1970, India has become the largest absolute consumer of tea after UK (Table 2). Larger domestic demand has given a new direction to the tea industry in the recent years. Vol. 09, Issue 02, December, 2013

depressing for the Tea Industry in India (Asopa, 2007). The major cause of depression in the industry was the decline in the international demand of Indian tea. The traditional markets of Indian tea like USSR and UK have drastically reduced the import of tea from India. Changed global situations like disintegration of USSR, WTO agreement, globalization of markets across the nations, etc. have proved to be adverse to India. In the year 2004, India lost its eminent position of the largest producer of tea to China. Kenya has already taken over Sri Lanka in export pushing India to third position (Table 3). There is a fierce competition abroad. Indian tea has lost its competitive advantage to other countries on account of high cost and poor quality. However, one new development, i.e., India becoming the largest consumer of tea next to UK, Decline in demand for Indian tea has provided a lifeline to the tea industry (Table 2). While tea production of India in the global market grew by about 250 percent since 1947 • Defects in auction system (1947 production-255mkg and 2007 • Poor price realization production-950mkg) but the rate of • Defective market structure growth of export remained insignificant • Increase in cost of production (Table-13). It appears that, India grow tea (a) Decline in demand for Indian mainly for Indians. However, the exports tea in the global market of all other leading tea exporting countries The decade of 90’s has been quite have grown rapidly over the same period. Major causes of the crisis Despite India’s historical success with the tea industry, in recent years, the industry has faced serious competition in the international and national market which has lead to the present crisis. Many factors have been cited as causing the crisis in the Indian tea sector–since the late 1990’s. Analysts agree that the dramatic fall in prices is one of the most significant causes of the crisis. The worst affected are plantation workers and small growers; many estates failed to withstand the downward slide of price and hence moved out of business leading to the closure of tea estates that employ thousands of workers and of factories (BLF) to which small growers might sell their products. Tea prices in India are being driven down by many factors:

Vol. 09, Issue 02, December, 2013

Tea The fact remains that whatever the size of the domestic demand (par capita consumption was 200grams in 1950, has increased to nearly 700grams in 2007), there is still sizeable surplus amounting between 180 and 200 million kg that needs to be sold (Asopa 2007). (b) Defects in auction system India’s tea market is facing yet another paradox which could be explained in terms of glaring gulf between the price charged by dealers and retailers (Choudhury, 2006). A 2005 report for the International Labour Organization (ILO) notes that the large tea companies are benefiting from fall in auction prices and rise in retail prices for tea. “This widening gap between consumer and auction prices……is cutting into the margins realized by the tea producers but is not being passed on to the consumer in the form of lowered tea prices” (Goddard, 2005). Similarly a report by the Government of Assam published in 2004, found it “unfathomable that the retail price of tea has not come down with the fall of auction price. Certainly, the margins of intermediaries are far too high. Price paid to plantation and small tea growers has fallen since 1998, retail prices for tea have increased (Goddard, 2005). Average price for medium quality tea sold in Indian market increased from Rs.85-90 per kg in 1999 to Rs.120-140 per kg in 2005 and it continues to rise. In India, nearly 55 percent of total tea produce is sold through auction houses, with the rest sold through private sales. Even after the abolition of compulsory auction in 2001, the auction houses are very important constituent of tea marketing structure. The important feature of tea auction sale is that the producers/growers do not take part in the selling process directly. The brokers in the market (few in number who are registered brokers in specific auction center) sell tea on behalf of producers. Brokers generally do not accept bid from unknown buyers (Table 4). Many industry insiders also believe that the large buyers have co-operated on the auction floor to keep tea price low. An independent report commissioned by the Indian Government in 2002 also suggested a merging of interest between broker and buyers, as well as co-operation between Vol. 09, Issue 02, December, 2013

buyers at auction houses, both of which prevented tea growers from fetching a fair price at auction. (Table 5) The large buying companies use their market power (as they have their own network of sales and marketing all over the country and export tea after blending) to push down price and take the advantage of depressed market to pay low prices; they are clearly benefiting from the current situation. Hindustan Lever, Tata Tea, Williamson Magor, etc. are such powerful buyers having enormous influence on the market and price of tea in India in general and Assam tea in particular. These big tea companies which are in monopolistic competition in consuming countries always try to stabilize prices (Asopa 2007) (Table 6). The longer transaction time and higher transaction cost (like warehousing charges, transportation cost, brokerage charges etc.) are some other problems with the auction system. It takes about 35 days for the entire transaction processes to complete.

•

(c) Poor Price realizations The price of tea has been on long term decline while production costs have been rising, putting pressure on tea growers and working condition of labourers (Table 11). The decline in prices has been primarily due to growth in production in the face of sluggish demand (Table 7). Low prices for tea are generally passed on to the plantation workers in the form • of low wages and withdrawal of basic facilities like food, health, education, etc. given that it is easier to cut cost by reducing labour cost (as the labour has weak bargaining power) than raising the price of tea (difficult in the competitive market economy) and in most of the cases producers have to remain competitive by lowering wages. Major causes of poor price realization are due to following reason: • Competition between producing countries for a share of the world market was one of the major causes of falling price of Indian tea. World production of tea is fairly diversified and not concentrated in a particular area. Presently 36 countries of the world produce tea and many of them are big producers. They prevent the establishment of a monopolistic leader 31

in the world tea market to ultimately allows fair and free competition in the market. Demand for tea is rising very slowly (1.5-2 per cent), therefore the only way to increase market share of export by a country is at the expense of the competitors. Because of the dominance of auction system as a day–to–day intermediary between producers and buyers, the actual producers have been unable to maintain direct contact with the ultimate customer of tea and thereby creating a long term relationship. Tea is a perishable product. Its quality and flavour deteriorates very quickly. Therefore it is frequently necessary to cut prices to clear stocks. Tea producers have to stay in market despite cut in prices of their produces as they have invested a huge sum of money; many people are dependent on it and lack of alternatives for them. It is forecasted that tea production will increase over next few years, despite a slower growth in demand, a trend that can only undermine price of tea in the long run. The present decline in prices was on the back of a 0.6 percent annual increase in production during 1984–2005 is estimated at 2.8 percent (Table 7). In 2005 alone, surplus of export available over import requirement stands at about 24000 tones, a surplus of 2 percent. There is a major shift in the consumption and thereby composition of demand for tea in the developed (importing) countries which has had unfavorable effects on aggregate export earnings from tea. The increasing use of tea bags and soluble instant tea effectively reduces the quantity of tea needed per cup and also raise the demand for plain cheaper tea. The tea bags accounts for 10 percent of the volume of world consumption–and it is still increasing. Factors which help to motivate consumption of instant tea include its ease of use as a cold dink and introduction of vending machines. These changes in the consumption patterns of tea have also significantly contributed to the decline in tea prices.

Tea (d) Defective market structure The tea value chain (Chart -1) comprises all the stages from green leaf production from the bushes to finished product and sale to the customers. Value is added to the tea leaves at each stages of the supply chain, each with associated cost (SOMO2007). This includes the cost of plucking and sorting, factory packing, internal transportation, ware housing, sales changes (auction or direct sale), freight, insurance, interest, blending, packaging and retailers sales cost etc. In general most of the agricultural produces, value addition is done at the downstream in the higher processing and retail stages of supply chain–this is also true with tea. While tea is ready to drink item, the downstream stages such as blending, packing and ultimate marketing are the most profitable one. This part of the value chain is controlled by a handful multinational tea packers and brokers (SOMO 2007). Concentration is extremely high in the downstream of tea supply chain where 90 percent of western tea trade is controlled by 7 (seven) MNC’s, 85 percent of world production is sold by these MNC’s. (List -1) As a result, these MNCs can considerably influence world retail price. These are the indications that big companies have been influential in keeping world market price low, which affect the sustainability of tea industry.

infrastructure including transportation and unstable law and order situation in and around garden area etc. result in high cost of production (Table 9). Field and factory workers’ productivity is also considered low in India. The impact of social cost (health, food, housing, water etc.) in the large estates in percentage terms works out to about 5-8 percent of the total costs. It implies an additional Rs.4.12 per kilo for manufactured tea in NE Region of India and Rs. 3.44 per kilo in South India (SOMO-2007). Therefore it is assumed that around 80 percent of the cost of production goes towards fixed expenses like fuel, power and labour (Table 10). Inflationary pressures are now pushing up these fixed costs further. Labour unrest is another major problem faced by planter/ estates. Looking into the profitability of the industry at the current price, does not provide the way to meet these costs. Rising costs and low productivity can have negative consequences on social and environmental aspects of production (sustainability problem), if these costs cannot be passed on to the ultimate buyer.

Recommendations for improvement Despite being the largest producer and consumer of tea, the Indian plantation sector lacks appropriate mapping of production and consumption levels. Due to absence of accurate estimates the formulation of long term industry wide action plans have been affected. The fact which emerges from the present crisis is that Indian tea has not been globally competitive. It has concentrated more on building up its large estates and has given less attention to processing and improving the quality by proper blending and marketing–for higher price realization of their products. Unlike its key competitors, India does not have any powerful brand to support its promotion drive in the international market. To win back the confidence of lost foreign markets, Accentore (a global consultancy firm) has identified the need to revitalize the image of Indian tea in that international market. A vigorous campaign which include Indian tea logos and making Indian brands acceptable in

(e) Increase in cost of production While market prices for tea have been falling, the cost of production has been on the rise in India, putting downward pressure on profitability and income (Table 8). One factor which is closely related to the cost of production is, of course, productivity in terms of volume per hector which is affected by change in climate, soil fertility, age of the tea bush, high over-head cost, poor agricultural practices etc. The stagnation in productivity in many big estates is compounded by high land labour ratio. Productivity declined in India from 1996 to 2005 in the large garden (Table 8). Labour cost accounts for around half of the unit cost of production and approximately 55 to 75 percent of that labour cost is on plucking. High fuel cost, dilapidated 32

Vol. 09, Issue 02, December, 2013

Tea those markets. Further, an inspection agency should be appointed to keep a quality check on the tea that is exported, as the study also recommended that a major thrust should be made to improve quality for the long term sustainability of tea industry of India. Study done by the United Nations Food and Agriculture Organization (FAO, 2001) has suggested the need for reducing the unit cost of production through productivity gains, capacity building of small growers, streamlining marketing channels, improving infrastructure, tailoring marketing activities to individual country’s demand, propagating health benefits of tea and promotion of organic tea using the tea mark. This is exactly what the domestic tea companies should do for their long term survival. Improvement of supply chain management in side the country and global tea marketing network. The tea industry in India has a legacy of corporate farming right from the day of British rule. The current situation in the sector has given ample reason for a rethink on whether corporate farming can really boost agriculture. Time has come when tea companies should sell out their large estates to farmers for cultivation, for ensuring more competitiveness and make the industry viable. This will reduce production costs also. In return big companies should enter into contract with tea growers by giving them technical and marketing support and all that is needed for backward and forward linkages. Indian farmers have done wonders by ushering in the green revolution and ensuring food security in this country. They will replicate the same in the tea sector also. As it is observed, retail price of tea have not declined when prices at the local auction centers have fallen so dramatically since 1990’s, noting the larger profit by the packers/retailers who are mostly at the end of the value chain. The issue here is the role played by these companies in their own plantation, implications of direct purchases by them from other growers and their relationship with brokers at the tea auctions, where price manipulation is widely suspected. These defects at the auction centers should be investigated and remedial measures like – bringing more transparency at the auction market; Vol. 09, Issue 02, December, 2013

introduction of online auction practices for tea, etc. should be taken which will lead to changes in the structure of tea auctions to limit the manipulation by the big players in the industry. International brands like Liptons, Brooke Bond of HUL and Tetly tea of Tata Tea; etc are the market leaders and have great power in price determination in both domestic and international market. This needs to be stopped and proper investigation is needed to curb the wrong practices in the tea market by introducing new laws to regulate the price movements. It has been observed that the actual producer of tea has no direct link with the ultimate consumer. Tea producers sell their products to the bulk purchaser through direct sale or through auction to big buyers. Therefore, the producers do not understand the market demand / choice of the customer, it is very important in today’s market economy for long term sustainability of the industry. With the withdrawal of sales restriction, the growers can directly go to the market by building their own brand. As the margin of profit is very high at the present domestic retail market, Indian tea growers should invest and take this opportunity for the promotion of their brand at the retail market. Fresh capital inflow is needed right at this moment for the tea industry of India. Investment in new plantations and production machineries must come immediately to compete in the international market. Since tea industry has to compete globally, it is necessary that they should have access to global capital at competitive rate. This can bring life to the industry and those who live on it, especially workers. Recognizing the fact that the tea industry’s crisis in India has multiple causes, which require a variety of solutions–one of the most important steps from the government part shall be to introduce a stronger competition law to curb the misuse of corporate buying power and promote social objectives at the garden level. We believe that focusing on the role of the larger tea companies, which hold a great deal of power in Indian tea market can have a significant influence over conditions for workers on plantations and small growers.

References 1.

Asopa, V. N. (2007) ‘Tea Industry of India: The Cup that Cheers has Tears’ Indian Institute of Management, Ahmedabad, W. P. No.2007-07-02 (July). 2. Barthakur, Ranjit & Kripalini Dipak ‘Vision 2020 Reinventing the Indian Tea Industry to Achieve Sustainable Global Competitiveness and Sustainable Livelihood.’ Global Managed Service (GMS).. http://www.gmsworldnet.com/ images/vision_2020_reinventing_indian_ tea_industry.pdf 3. Bora, Chaytanya (2003) ‘Marketing of tea with special reference to the tea industries of Assam’, Finance India, September. 4. Chattopadhyay, S. S. (2001) ‘Tea Board’s cup of woes’ Vol:19 Iss:25. h t t p : / / w w w. f l o n n e t . c o m / f l 1 9 2 5 / stories/2002122000_8500.html 5. Choudhury, Dr Rabindra Kumar (2006) ‘Indian Tea Industry and Assam. http:// www.nenanews.com 6. Goddard, Samanth (2005) ‘Tea Break: A crisis brewing in India.’ Action Aid, UK. 7. International Tea Committee (ITC) Annual Bulletin of statistics 2006/2007, London, UK 8. Kabtta, Kiran (2008) ‘Bearish phase over for domestic tea sector’, The Economic Times, 30th June. 9. Karmakar, Dr. K. G. & Banerjee Dr. G. D. (2005) ‘The Tea Industry in India: A survey’, Department of Economic Analysis and Research NABARD, Mumbai (Occasional paper-39). 10. Kuman, Priya (2008) ‘Challenges that Indian Tea Industry faces’, http://www. commodityonline.com 11. Lines, Thomas (2006) ‘Sustainable livelihoods for Indian Tea Workers: The International Dimension’, Department of International Development, Tradecraft Exchange (May). 12. Mandal, Kohinor (2003) ‘Tea consumption data stirs up a storm’, Business Line, Friday. August 29. www.thehindubusinessline. com/2003/08/29/stories/20030829 13. Sharma, Ashok B. (2001) ‘Tea Industry in crisis: Has corporate farming failed?’ The Financial Express, Oct 18. 14. Tea Board, Tea Statistics, Kolkata 15. Wal, Sanne Van der (2008) ‘Sustainability issues in the Tea Sector: A Comparative Analysis of six Leading Producing Countries’, SOMO (Stichting Onderzoek Multinationale Ondernemingen), Amsterdam, Netherland.

Tea Table 1: Global Tea production and Export in 2006 (In metric ton) Country

Production

World Share (%)

Export

World Share (%)

China

10280624

0.29

286594

0.18

India

955907

0.27

200866

0.13

Sri Lanka

310822

0.09

314915

0.20

Kenya

310607

0.09

313721

0.20

Turkey

142000

0.04

5500

0.00

Indonesia

140049

0.04

95339

0.06

Vietnam

132000

0.04

106000

0.07

Japan

99500

0.03

1681

0.00

Argentina

80000

0.02

70723

0.04

Bangladesh

53265

0.02

4794

0.00

Malawi

45010

0.01

41962

0.03

Uganda

36726

0.01

32699

0.02

Tanzania

31348

0.01

24132

0.02

Iran

20000

0.01

6000

0.00

Taiwan

19345

0.01

1962

0.00

Other

128157

0.04

64920

0.04

Total

3532800

Table2: Estimates of domestic consumption of tea in India Year

Domestic consumption (in M kg)

1998

615

1999

633

2000

653

2001

673

2002

693

2003

714

2004

735

2005

757

2006

771

2007

786

2008

802

2009

819

2010

837

Source: projected by IIM Kolkata.

1571808

Source: SOMO based on annual bulletin of statistics 2007, ITC. & Tea Digest (20052006), Tea Board of India.

Table 3: Export of Tea from India to different countries during 1998-2004 Importing countries

1998 (Million tons)

2004 (Million tons)

Export result

21273

17606

Decline

France

316

175

Decline

Germany

5166

4777

Decline

Ireland

2517

2356

Decline

Netherlands

1939

2974

Increase

Poland

9879

5104

Decline

USSR

94582

48505

Decline

Canada

752

1204

Increase

USA

3194

5781

Increase

Saudi Arabia

3780

699

Decline

UAE

23040

24744

Increase

Iran

1097

3272

Increase

Iraq

10118

24732

Increase

Table 4: The brokers and their sale volume in the period 2001-02 in GTAC Serial no.

Name of Broker

Quantity (in kg)

Percentage (%)

J. Thomas

50696362.2

35.97

Carritt Moran

32983252.4

23.40

Assam Tea Brokers

8518041.7

6.04

Tea Brokers

10201942.5

7.24

Contempory Target

11128275.3

7.89

Eastern Tea Brokers

16978897.7

12.05

Associated Brokers

2401961.2

1.70

Japan

2911

2625

Decline

Pakistan

1392

3526

Increase

Syria

2467

Increase

A. W. Figgis

1880548.6

1.33

Paramount

6170385.4

4.38

Egypt

6651

100

Decline

Sudan

567

Decline Increase

Australia

1218

4803

Indiaâ&#x20AC;&#x2122;s total export

207639

179957

Decline

World export

1304896

1540001

Increase

Source: Statistical Cell, GTAC.

Source: Tea Board, Tea Statistics, Kolkata & Annual Bulletin ITC, London.

Vol. 09, Issue 02, December, 2013

Tea Table 5: Price movement of Tea in GTAC (Price in Rs per kg) Period

C.T.C.

Orthodox

Dust

Total tea

April- March

Avg. price

1996-1997

53.71

55.30

50.81

52.69

1997-1998

77.26

88.10

75.34

76.67

1998-1999

74.42

71.02

69.42

72.72

1999-2000

79.51

76.66

77.99

79.03

2000-2001

72.51

67.56

70.83

71.97

2001-2002

65.44

58.48

58.21

63.17

2002-2003

65.00

58.50

61.80

64.04

2003-2004

58.56

53.87

57.53

58.24

2004-2005

68.84

74.16

68.48

68.76

2005-2006

61.79

60.71

59.26

2006-2007

67.75

80.26

68.63

Table 6: Big buyers in GTAC and their total intake of Tea Name

1994-1995

2000-2001

Quantity bought (in kg)

%to total sale

Brook Bond India Pvt Ltd

41568887.8

30.71

Lipton India Pvt Ltd

25760464.0

19.04

Quantity bought (in kg)

% to total sale

7300531.6

5.15

Tata Tea Ltd

6806003.4

5.03

Lipton India Export Ltd

6276390.6

4.64

61.07

Bond Ltd

2475752.1

1.83

68.06

D. Dayalbhai & Co.

1865179.2

1.38

1642428.2

1.16

J. V.Goyal & Co.

1554426.0

1.15

2825516.3

2.01

Source: Guwahati Tea Auction Centre Year Book 2006-2007, Guwahati.

Table 7: World Supply and Demand (In million ton)

Kesaria & Co.

1256495.5

0.93

2.535576.9

1.76

Duncan Tea Co.

1111586.1

0.82

1537565.3

1.09

1030586.1

0.76

Year

World supply

World demand

Difference/Surplus

Harry & Co.

1990

2577.10

2563.87

+ 13.23

21.49

2933.49

2881.35

+ 52.14

Hindustan Lever Ltd

30439099.4

2000 2001

3061.43

3002.44

+ 58.99

Purbanchal Enterprise

3613866.2

2.55

2002

3086.59

3015.61

+ 70.98

1.78

3216.76

3151.71

+ 65.05

Estern Enterprise

2518274.2

2003 2004

3328.65

3182.05

+ 146.60

Eastern Agency

1386062.0

0.98

2005

3468.29

3362.96

+105.33

Kesaria Export

1639871.3

1.16

2006 (P)

3577.20

3438.99

+ 138.21

2007 (P)

3726.70

3620.06

+ 106.64

Source: Statistical Cell, GTAC, Guwahati

Source: Annual bulletin of statistics ITC London.

Table 8: Average yield of Tea in different countries (Yield in kg/ hectare) Countries

Area under cultivation

Yield per hectare

2000

2001

2002

India

504366

509770

511940

1679

2000

1675

2001

1614

2002

Sri Lanka

188971

1623

1568

1641

Indonesia

157488

160991

162000

999

1001

1025

Kenya

122236

131581

132000

1933

2239

2175

China

1089000

1140700

1155000

627

615

619

Myanmar

68392

877

Source: Mafatlal Securities Ltd. Mumbai

Table 9: Cost of production for made Tea in some producing countries in the year 2003

Table 10: Cost of production in Rs per kg of green leaf of small growers Components of cost

Assam

West Bengal

Tripura

Nilgiris

Kerala

Producing countries

Cost of production (in USD/ kg)

Inputs- Fertilizers/ Pesticides etc.

1.74

2.12

1.6

1.78

1.26

Sri Lanka

1.70

Wages

3.58

2.87

2.73

2.92

4.54

India

1.53

Direct Expenses

0.15

0.69

0.32

0.11

0.19

Kenya

1.18

Overheads

0.81

0.64

0.42

0.52

0.6

Malawi

0.99

6.32

5.07

5.33

6.59

0.85

Total cost per kg of green leaf

6.27

Vietnam Indonesia

0.58

Average price realization

7.41

5.5

4.54

4.87

5.35

Source: Estimated by SOMO, Tea Statistics ITA, Indian Tea Scenario 2004

Vol. 09, Issue 02, December, 2013

Source: Complied report on small tea growers (2005), Tea Board of India.

Tea Table 12: World tea export price for last few years (in US $ per kg)

Table 11: Quantity sold and Average Price in GTAC

Countries

1999

2000

2001

2002

2003

2004

2005

2006

India

2.38

2.04

1.95

1.79

1.97

2.06

2.09

2.03

Bangladesh

1.35

1.28

1.24

1.19

1.29

1.28

Sri Lanka

2.28

2.37

2.28

2.24

2.25

2.41

2.58

2.64

Indonesia

0.99

1.06

1.00

1.03

1.09

1.18

1.19

1.41

Period

Total quantity in m kg

Average price in Rs

Kenya

1.93

2.12

1.75

1.58

1.68

1.64

1.67

2.09

1996-97

147

52.69

Japan

14.33

15.87

13.11

14.60

16.29

18.15

18.34

16.37

1997-98

137

76.67

China

1.7

1.52

1.37

1.21

1.38

1.56

2.06

1.88

1998-99

147

72.72

Mauritius

6.02

4.37

5.27

5.72

5.63

8.29

7.57

8.44

1999-00

160

79.03

2000-01

142

71.97

2001-02

141

63.17

2002-03

125

64.04

2003-04

133

58.24

2004-05

129

68.76

2005-06

141

61.07

2006-07

149

68.06

Source: Year book (2006-2007) by Guwahati Tea Auction Committee.

Source: Annual Bulletin of Statistics 2006, ITC, London.

Table 13: World Export (In Million Kg ) Year

World

India

India’s share as percentage of world export

1961

554

206

37.18

1971

667

202

30.28

1981

818

241

29.46

1991

1079

212

19.65

2001

1394

183

16.82

2005

1567.20

199.05

12.70

2006

1588.79

218.73

13.77

2007

1587.20

178.75

11.26

Source: Annual Bulletin of Statistics 2006, ITC, London

List - 1 MNCs dominate the global tea market 1. The companies dominate the Tea trade at the global level • • • •

Unilever ( Brooke Bond, Lipton / Unilever Trading Company UTC, UK- The Netherlands) Van Rees (Trader/ Blender, Supplying many packers, part of Deli Universal Corporation, Netherlands ) James Finlay (Trader, Producer, Packer, UK) Tata Tetley / Stansand (Producer, Trader, Packer, UK)

2. Important Tea Packers in the World • • • • •

Unilever (Lipton is a very strong brand with a world market share of 10 %) Tetley (Tata Group) R. Twinings ( Associated British Foods) Ajeepay Group (Typhoo tea) Ostfriesche Tee Gesellschaft OTG: Major German company which also has activities outside Germany

Vol. 09, Issue 02, December, 2013

Nanotechnology marvel in Agriculture and food processing

“What would happen if we could arrange the atoms one by one the way we want them?” asked Richard Feynman, a wellknown American physicist, in his speech during the meeting of the American Physical Society in 29 December 1959. This idea eventually became a research field known as nanotechnology. Nanotechnology refers to controlling, building, and restructuring materials and devices on the scale of atoms and (Source: nano.gov/nanotech-101/what/nano-size) molecules.2 A nanometer (nm) is onebillionth of a meter. To get the sense of the nano scales, the width of the human hair is 80,000 nm and the smallest things visible with the naked human eye are 10,000 nm across. At nano scales, the basic rules of chemistry and physics are not applicable.3 One example of this technology is the carbon nanotube discovered in 1991, which is only a few nanometers in diameter but can conduct electricity better than copper; 100 times stronger than steel but only one sixth of its weight.4 Vol. 09, Issue 02, December, 2013

Nano Tech

Conceptual diagram of singlewalled carbon nanotube (SWCNT) (A) and multiwalled carbon nanotube (MWCNT) (B) delivery systems showing typical dimensions of length, width, and separation distance between graphene layers in MWCNTs. (Source: http://jnm. snmjournals.org/cgi/content/ full/48/7/1039/FIG1) Nanotechnology for Crop Biotechnology Chemists have successfully crafted three-dimensional molecular structures, a breakthrough that unites biotechnology and nanotechnology. They made DNA crystals by producing synthetic DNA sequences that can self-assemble into a series of three-dimensional triangle-

Nano Tech like patterns. The DNA crystals have “sticky-ends” or small cohesive sequences that can attach to another molecule in an organized fashion. When multiple helices are attached through single-stranded sticky ends, there would be a lattice-like structure that extends in six different directions, forming a three-dimensional crystal as illustrated in Figure 1. This technique could be applied in improving important crops by organizing and linking carbohydrates, lipids, proteins and nucleic acids to these crystals. Nanoparticles can serve as ‘magic bullets’, containing herbicides, chemicals, or genes, which target particular plant parts to release their content. Nanocapsules can enable effective penetration of herbicides through cuticles and tissues, allowing slow and constant release of the active substances.6 Chemists at the Iowa State University have utilized a 3-nm mesoporous silica Nanoparticles (MSN) in delivering DNA and chemicals into isolated plant cells. MSNs are chemically coated and serve as containers for the genes delivered into the plants. The coating triggers the plant to take the particles through the cell walls, where the genes are inserted and activated in a precise and controlled manner, without any toxic side or after effects. This technique has been applied to introduce DNA successfully to tobacco and corn plants.7 Figure 1. a. Stereographic image of the surrounding of a triangle; b.

Stereographic image of the rhombohebral cavity (white lines) formed by the triangles. (Source: From molecular to macroscopic via the rational design of a self-assembled 3D DNA crystal, Nature, DOI: 10.1038/nature08274) Nanoparticles and Recycling Agricultural Waste

Nanotechnology is also applied to prevent waste in agriculture, particularly in the cotton industry. When cotton is processed into fabric or garment, some of the cellulose or the fibers are discarded as waste or used for low-value products such as cotton balls, yarns and cotton batting. With the use of newlydeveloped solvents and a technique called electrospinning, scientists produce 100 nanometer-diameter fibers that can be used as a fertilizer or pesticide absorbent. These high-performance absorbents allow targeted application at desired time and location. Ethanol production from maize feed stocks has increased the global price of maize in the past two years. Cellulosic feed stocks are now regarded as a viable option for biofuels production and nanotechnology can also enhance the performance of enzymes used in the conversion of cellulose into ethanol. Scientists are working on nano-engineered enzymes that will allow simple and cost-effective conversion of cellulose from waste plant parts into ethanol. Rice husk, a rice-milling byproduct can be used as a source of renewable energy. When rice husk is burned into thermal energy or biofuel, a large amount of highquality nanosilica is produced which can be further utilized in making other materials such as glass and concrete. Since there is a continuous source of rice husk, mass production of nanosilica through nanotechnology can alleviate the growing rice husk disposal concern. Nanotech Delivery Systems for Pests, Nutrients, and Plant Hormones Nanosensors and nano-based smart delivery systems could help in the efficient use of agricultural natural resources like water, nutrients and chemicals through precision farming. Through the use of nanomaterials and global positioning systems with satellite imaging of fields, farm managers could remotely detect crop pests or evidence of stress such as drought. Once pest or drought is detected, there would be automatic adjustment of pesticide applications or irrigation levels. Nanosensors dispersed in the field can also detect the presence of plant viruses and the level of soil nutrients. Nanoencapsulated slow release fertilizers have also become a trend to save fertilizer consumption and to 38

minimize environmental pollution.1 Nanobarcodes and nanoprocessing could also be used to monitor the quality of agricultural produce. Scientists at Cornell University used the concept of grocery barcodes for cheap, efficient, rapid and easy decoding and detection of diseases. They produced microscopic probes or Nanobarcodes that could tag multiple pathogens in a farm which can easily be detected using any fluorescentbased equipment. This on-going project generally aims to develop a portable onsite detector which can be used by nontrained individuals. Through nanotechnology, scientists are able to study plant’s regulation of hormones such as auxin, which is responsible for root growth and seedling establishment. Scientists at Purdue University developed Nanosensors that reacts with auxin. This interaction generates an electrical signal which can be a basis for measuring auxin concentration at a particular point. The Nanosensors oscillates, taking auxin concentration readings at various points of the root. A system of formulas then verifies if auxin is absorbed or released by the surrounding cells. This is a breakthrough in auxin research because it helps scientists understand how plant roots adapt to their environment, especially to marginal soils. Nanotechnology and food Nanotechnology is the basis of many novel and functional foods. It holds tremendous potential for use in the food and beverage industry, but challenges remain to its more extensive implementation. Nanotechnology is a technology based on the understanding of what happens at the scale of 10-9 meters, the scale of atoms and molecules, and also the scale at which food, like everything else we see about us, acquires its recognizable properties of flavor, aroma, texture and so on. There are several key areas where the food industry is particularly working on the development of new techniques, including the following: • Novelty (new textures, tastes and colours) • Processing (better and cleaner equipment and surfaces) • Safety (reducing the likelihood of contamination) • Healthier foods (adding and enabling the release of nutrients) Vol. 09, Issue 02, December, 2013

Vol. 09, Issue 02, December, 2013

Nano Tech • Sports foods and drinks • Smart packaging. Nanotechnology is the basis of many novel and functional foods. For example, food colours, flavours and textures can all be manipulated and altered at the nanoscale. An important nano technique is encapsulation, which has been derived from the pharmaceutical industry. Encapsulation is critical to the delivery of flavours or nutrients in products tailored to suit consumer preferences or health requirements. Encapsulation is also used to improve the stability of a mix of ingredients, and to create novel textures and tastes, as well as disguising unpleasant flavours, such as fish oil. Nanotechnology also has a role to play in altering the colour and flavor of foods. For example, differently ‘twisted’ molecules (the direction of chirality) can determine whether the flavor imparted is ‘lemon’ or ‘orange’. Another example is the use of mineral nano particles. For those of us that love the taste of salt but are worried about its health implications, nanoparticulate salt gives a salty taste to foodstuffs, but much less is required than if conventionally sized salt grains are used. This has been the subject of much research by Leatherhead Food Research, which is supporting the use of nanoscale salt by food companies in their bid to bring their products in line with daily intake guidelines.

the nano and micro scale. Food processing nanotechnologies also offer many improvements for the food processing industry. One example is in relation to the customization of emulsions, important in many areas such as sauces, ready-made meals and puddings. Nanoparticles can also be used as thickeners. Some processing utilizes nano-structured, porous membranes to create specific-shape holes that allow the size of, say, oil droplets to be controlled to a very high degree, for example, in emulsification. This enables manufacturers to develop double, triple or even multiple emulsions as the basis for many new products, allowing multiple components to be enclosed in a single oil droplet. Nanoscale membranes can also provide filtration and purification for air and water, and nano-modified surfaces, coatings and finishes provide antibacterial properties and dirt repellency, all very useful in food preparation. Food safety With regard to safety, nanofilters can also be used to remove toxins such as pesticides. The Dutch company Aquamarine produces microsieves with fine-tuned nanopores that act as filters for a variety of applications.

The critical need for food safety provides an opening for many new techniques based on nanotechnology. For example, in food preparation areas, nano filters are used to clean the environment, and there are nano-enhanced antibacterial surfaces, while nano coatings on tools and equipment make them sharper, longer lasting and easier to clean. Novel nanobiosensors, developed by other industries including medicine and defence, can rapidly detect the presence of pathogens, pollutants and toxins in the processing of foods. These tiny sensors are cheap to produce, have high sensitivity, specificity, robustness, reliability and are more easily integrated into food production systems. They are replacing bit-by-bit, the more expensive and time-consuming analytical methods that involve sending samples to a laboratory. Nanosens in the Netherlands is already making portable sensing systems for the rapid detection of biological and chemical contaminants in food and other application areas. Encapsulation techniques There is a large and increasing market for foodstuffs with enhanced vitamin and other supplements, where nano encapsulation can again have a major

Flavor burst Many foods and beverages contain naturally occurring nanoscale colloidal components (dairy for example), and these components can also be manipulated by food companies to add novelty and/ or improve the longevity, taste, flavor and calorific content of their products. Nano also has a role to play in providing a burst of a specific flavor. At the University of Nottingham, scientists investigating nanoscale aroma release have shown that this ‘flavor burst’ is related to the physical and chemical characteristics of the flavants at 40

Vol. 09, Issue 02, December, 2013

Nano Tech impact. Through using encapsulation techniques, nanotechnology enables the production of ‘healthy’ foods such as low-fat dairy and non-dairy oils, low salt and sugar products, and foods that can counteract certain diseases by the incorporation of specific vitamins and minerals, and by making them more easily absorbable in nanoparticulate form. Other nanoscale phenomena, such as those included within the term ‘colloid science’, are also exploited in nutraceutical and functional food formulations, manufacturing and processing. A number of companies are active here, for example Nutralease, based in Israel, has created nano-sized concentrates of vitamins E, D, A, K and isoflavones. Sports foods and drinks The active ingredients in sports drinks need to be absorbed quickly to assist performance and maintain the health of the athlete. These benefits can be achieved by including these ingredients in nanoparticulate form (this is also the way that less soluble medicines are administered). The kinds of nano techniques used in sports foods and drinks, such as improved bioavailability of vitamins and minerals and encapsulation and release of energygenerating foodstuffs, are also widely used in those drinks that offer a quick ‘kick’, and in certain foods where the release of fats, sugars, proteins, vitamins and minerals can be programmed to suit the activity levels of the consumer. Advanced Sports Nutrition (ASN) is one company that offers a sports drink with nanoscale ingredients. Its product, HPC - High Performance Creatine ‘uses nanotechnology, and … ingredients that have been scientifically proven to maximize uptake of Creatine into muscle cells and also provide optimal hydration and support for maximum performance during exercise and nutrient uptake after exercise’. Food packaging is an area of the industry where nanotechnology has been most rapidly embraced, as it offers many benefits ranging from improving barrier properties, thus preventing contamination of foodstuffs by specific gases (eg oxygen) or unwelcome scents, to using in-built nano sensors that can detect Vol. 09, Issue 02, December, 2013

when perishable contents are spoiling and change colour to warn consumers. Similarly, ‘smart’ packaging can maintain an internal ambient temperature for longer, increasing the lifespan of the contents. Some packaging also has antibacterial and sun-blocking properties based on the application of nanotechnology, and nano devices placed in packaging would enable easy tracking of large quantities of product and act as a deterrent to counterfeiters. The Impact of Nanotechnology Nanotechnology is considered as one of the possible solutions to problems in food and agriculture. Just like biotechnology, issues of safety on health, biodiversity, and environment along with appropriate regulation are raised on nanotechnology. However, nanotechnology products such as anti-bacterial dressings, stain-resistant fabrics, and suntan lotions have long been commercially available.14 Nobel laureate Richard Smalley presented the benefits of nanotechnology to the U. S. House Committee on Science in 1999. He emphasized that the impact of nanotechnology on health, wealth, and lives of the people will be at least equal to the combined influences of microelectronics, medical imaging, computer-aided engineering and manmade polymers developed in the 20th century.15 To date, nanoscientists are developing techniques for atom-by-atom construction of objects that have potential applications not just in agriculture but also in medicine, electronics, information technology, and environmental monitoring and remediation, to name a few.16 Counterview on nanotechnology What’s new about Nanoparticles, as far as risk is concerned, is that many of them are chemically inert as ordinary ions or as larger particles (and hence never had to go through regulatory approval before the Nanoparticles were used); but as soon as the particle size reaches nanometer dimensions, they acquire novel physicochemical properties, causing oxidative stress and breaking DNA, and they can get access to every part of the body including the brain, via inhalation and the olfactory nerve. A comprehensive review by Cristina Buzea and colleagues at Queen’s University, Kingston, Ontario, in Canada, pointed out 41

that human beings have been exposed to natural Nanoparticles since the origin of our species, in the form of viruses, dusts from terrestrial and extraterrestrial dust storms, volcanic eruptions, forest fires, and sea salt aerosols (which are largely beneficial). Nanoparticles have been created by human activities for thousands of years, by burning wood in cooking, and more recently, chemical manufacturing, welding, ore refining and smelting, burning of petrol in vehicles and airplane engines, burning sewage sludge, coal and fuel oil for power generation, all of which are already known to have health impacts. Automobile exhaust particular pollution is linked to heart and lung diseases and childhood cancers. However, the introduction of Nanoparticles in food and cosmetics is less than a decade old and the industry must advise the public of the health implications which are largely man-made. The Industry Must Act There is clearly an urgent need not only to stem but also to reverse the unregulated tide of Nanoparticles that are released onto the market. In view of the existing evidence, the following actions should be taken. • Engineered nano-ingredients in food, cosmetics and baby products for which toxicity data already exist (e.g., silver, titanium oxide, fullerenes, etc.) should be withdrawn immediately • A moratorium should be imposed on the commercialization of nano-products until they are demonstrated safe • All consumer products containing nanotechnology should be clearly labeled • A robust regulatory programme on nanotechnology – including characterization and standardization of manufacture – should be implemented as soon as possible • There should be earmarked funding for research into the hazards of nanotechnology.

Vol. 09, Issue 02, December, 2013

Mechanization of PANEER Production Process

Józef Żuraw, PhD, Maciej Raczyński MSc Obram Ltd., Poland

by the combined influence of heat and acid treatment, form the basis of paneer making. When milk is heated to a temperature required for paneer making (900C), the native configuration of whey proteins is disrupted, they loose calcium-caseinatephosphate micelles. The gelation / aggregation occurs more rapidly and at a higher pH (pH 5.4 – 5.7) in heated milk (900C) than in unheated milk. Paneer manufacture thus essentially involves the formation of coprecipitates due to complexing of heat-denatured whey proteins with the casein followed by their acid coagulation. The higher the degree of PRINCIPLE OF PANEER MAKING Paneer is obtained by heating milk to coprecipitation, the grater will be the total about 900C, acidifying the hot milk by solids recovery and yield of paneer. adding citric acid solution followed by removal of whey and pressing of the curd Type of milk before cooling the pressed mass in chilled Use of buffalo milk produces best quality water. Chemical and physical changes in paneer. Cow milk product is criticized to casein and whey proteins, brought about be too compact, fragile and unsuitable INTRODUCTION Annual production of Paneer in Asia (India, Pakistan, Bangladesh, Iran and other) was estimated at approximately 1 500 000 tonnes in the year 2010. Paneer has many uses starting from its consumption in raw form, to preparation of several varieties of culinary dishes and snacks. The demand of the value added products with paneer as the base material is growing at a very fast rate particularly in the urban areas. There is a further need to tap the marker potential of paneer both for domestic consumption as well as export.

for frying and cooking. Irrespective of the type, milk should be standardized to a fat & SNF ratio of 1:1,65. Paneer of most desirable texture attributes and maximum yield (about 22%) can be prepared from buffalo milk wherein fat and SNF are adjusted to 5.8 and 9.5%, respectively. Heat treatment High heat of milk improves the solids recovery, yield, flavour and body and texture characteristics of paneer. Milk heating up to 900C with holding, is more widely used by dairy industry. Coagulation 70-80 0C and higher produces the desirable body and texture characteristics in paneer. Higher temperatures of coagulation induce greater solids recovery, but lower yield due to increased moisture expulsion. Such product has also very hard body. But a higher temperature of coagulation (850C) should be used when making paneer from cow milk. Vol. 09, Issue 02, December, 2013

Dairy Product coagulated mass is possible with use of special designed shovels which break the curd (not cut).

Pasteurization of milk is done on Pasteurization Unit based on PHE (plate heat exchanger) with 10 minutes holding time. Heat from whey drained after coagulation process can be recovered here and used for pre-heating of milk.

Drainage of Whey and Pressing of Curd After coagulation, curd is allowed to settle for about 5 min to achieve a final consistency and then whey is allowed to drain through the strainer (traditional) or mechanical belt curd drainer. It is Paneer in multimoulds located under desirable to maintain temperature of curd pressing station at temperature not lower than 63°C during drainage of whey , what can be achieved by accelerating of the process on OBRAM Paneer line.

Coagulation of Milk The optimum pH of coagulation of Buffalo milk at 70-75°C is between 5.355.45 and that for cow milk at 80-82°C is in the range of 5.25-5.35. The concentration of citric acid solution that results in the best product is 1-1.5%. Stronger solutions impart hardness and graininess and cause greater solids loss in whey. About 2.0-2.5g of citric acid is required for coagulation 1kg of buffalo milk, and 1.7-2.0g of cow milk.

Individual pressing of Paneer in the multimoulds

Curd together with whey is transported on the draining belt by membrane pump, where the whey is drained. Curd is moved to perforated tubes by special dispenser. In the tubes a final drainage of whey from the curd takes place and it ends with initial forming. Proper size of paneer cheese block is than placed into multimoulds and pressed for approx. 15 min (up to 1,0 kg /cm²) to obtain a product with desired texture.

Closed Coagulation Vats can be used for coagulation of milk. Its construction prevents evaporation of steam inside the production room. The body of vat is insulated. Preheated citric acid is provided via flow meter to dosing nozzles installed inside the vat. Citric acid is spread evenly Paneer in multimoulds after Columnar on milk surface. Gentle treatment of Forming Unit Vol. 09, Issue 02, December, 2013

Chilling of Paneer Paneer block taken out of the multimould, using pneumatic pressure (blow-out system), can be cut into pieces of the desired size and transferred to a chilled water tank (temperature must be lower than 10°C) for 1-3 hours depending on size of Paneer block. Chilling of paneer brings down temperature and helps in developing desired texture. Technological chilled water must be pasteurized and very good quality, particularly from bacteriological point of view.

Water inside the cooling vats is in continuous circulation. The system consists of filtration system and automatic temperature control. Packaging Paneer cheese can be packaged in high hygienic conditions in polyethylene pouches, heat sealed and stored under refrigerated conditions or frozen. Vacuum

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Dairy Product packaging in laminated or co-extruded films is recommended. Some dairy companies use polyethylene pouches filled with natural gas, which is also a proper way of packaging.

VARIANTS OF PANEER Under certain conditions as, for example, for reduction of cost, in case of nonavailability of fresh milk, for the reason of health benefits and improvement of nutritive value, modification of the normal Yield of Paneer paneer or a new type of products similar The yield of paneer depends on the total to paneer in sensory quality, may become solids in the milk and the retention of milk desirable. Such products developed so far solids and moisture in it. Moisture and are discussed below. solid retention contribute to paneer yield. Generally a yield of 20-22% of paneer for LOW FAT PANEER – FROM MILK 3% buffalo milk and 15-17% for cow milk fat is obtained under optimum conditions of The conventional paneer is quite rich in fat, manufacture. which not only increases the price but also makes it unsuitable to those consumers UF PROCESS IN PANEER who are conscious of high fat and want to MANUFACTURING have a low-fat paneer. Therefore, attempts Membrane processing has a potential were made to develop low-fat paneer. in applications for the manufacture of Paneer of quite good quality could be Paneer. Ultrafiltration (UF) brings the manufactured from milk with fat content advantages to mechanization, uniform as low as 3,0%. quality, improved shelf life, increased yield and nutritionally better product. RECOMBINED AND RECONSTITUTED The process involved standardization and MILK PANEER (FROM LH MILK heating of milk followed by UF whereby POWDER) much of lactose, water and some minerals Suitable technologies have been develwere removed along with this permeate. oped for the manufacture of acceptableUF of milk and the removal of permeate quality paneer from reconstituted whole is equivalent to removal of whey by milk powder and recombined milk. Pacoagulation in conventional method. neer made from reconstituted milk did The concentrated mass, which had about not conform to the PFA requirements in 40% total solids, can be acidified as in respect of the minimum 50% fat content traditional process to get the desired pH, on dry basis. moisture and texture. UF process can be applied to mechanized OBRAM Paneer production line.

FILLED MILK PANEER (VEGETABLE OIL) Studies showed that paneer of an acceptable quality could be prepared using buffalo skim milk and groundnut oil. A fat level of 5.5% in the filled milk and heating to 900C were found to be the most suitable conditions. The paneer thus obtained contained 16-18% protein, 2223% vegetable fat and 55-56% moisture. The process developed is relatively simple and permits the use of commonly available equipment for manufacture of paneer on both small and industrial scale and the cost of production is considerably reduced. Standardized process for manufacturing of paneer from skim milk incorporated with coconut milk of 25% fat gave positive results. Sensory quality of the product made from filled milk having 10% coconut milk was highly acceptable. PROTEIN ENRICHED FILLED PANEER (VEGETABLE PROTEINS) A new process has been developed for preparing protein-enriched filled milk paneer. The process involves supplementation of vegetable proteins in the form of calcium soy isolates or calcium groundnut isolates to the skim milk and vegetable fat mixture. Such product would be nutritionally rich (protein increased by 50%) and economically superior to the conventional paneer and thus ideally suited to dietary management of consumers suffering from protein-energy malnutrition. This product is similar to tofu.

Table 1 Recommended parameters of Paneer made from buffalo or cow milk using OBRAM mechanized Paneer production line. • • • • • • •

Process Standardization Heating Coagulation (temperature) Coagulant pH of coagulation Curd

• • • • • • •

• • • • • •

Final pressing Chilling Time of chilling Packaging Storage - refrigerated Storage - frozen

• • • • • •

Buffalo milk Fat : SNF 1: 1,65 900C / 7-10 min 70-74 0C Citric acid (1 % solution) 5.35-5.45 Prepressing in tubes Solution) 0.5-1.0 kg/cm2 Chilling water 6-100C Depend on size: 1-3 h Vacuum system < 100C ≥ - 180C 48

• • • • • • (OBRAM • • • • • • •

Cow milk Fat : SNF 1: 1,65 950C / 10-15 min 80-82 0C Citric acid (1-1.5 % solution) 5.25-5.35 Prepressing in tubes (OBRAM Solution) 0.5-1.0 kg/cm2 Chilling water 6-100C Depend on size: 1-3 h Vacuum system < 100C ≥ - 180C Vol. 09, Issue 02, December, 2013

Dairy Product Table 2 Proximate composition of Paneer

1987 1971 1984 1987 1984 1987 1989 1999 1971 2000 2007 1991

1992 1991 1992 1991 1988b

1991 1984

1992 2005

1996

2008

1992 1991

Vol. 09, Issue 02, December, 2013

Shatrunjay Apartment, Shop No. 4&5, A Wing, Plot No. 22, Survey No. 120 A+B,Opposite P.L. Deshpande Garden, Sinhgad Road, PUNE - 411030, India, Tel. 0091 20 24252147, 0091 20 24252016, Fax 0091 20 24252147 www.sesotec.com

Vol. 09, Issue 02, December, 2013

Bingo vs Frito-Lay vs Hippo: Game on for India’s snack sector

arket dynamics will soon change in the Rs 7,200-crore branded snacks sector. To counter competition from multinational players, domestic players like ITC Foods, Parle Products, CavinKare and Parle Agro are drawing up fresh strategies to woo consumers. Despite a slowdown, the sector is growing at 30%. Recognising the growth potential of this sector, Indian FMCG majors are beefing up their operations to drive volumes. To begin with, makers of Bingo, ITC Foods is betting big on innovative products, brand-building plans and digital communications to take on multinational rival PepsiCo, led at the global level by Indra Nooyi . At present, PepsiCo India’s Frito-Lay is leading the pack in the branded snacks sector. While Parle Products is extending manufacturing capacity and distribution network, CavinKare that acquired ‘Garden Snacks’, is strengthening its

Vol. 09, Issue 02, December, 2013

snack portfolio with retail and marketing initiatives. The company is also scouting for acquisitions to extend product portfolio. On ITC’s plans, chief executive, foods division at ITC, Chitranjan Dar said: “ITC is leveraging its distribution and supply chain investments and cuisine expertise of hotels division to enhance consumer franchise in the snacks segment.” “Our strategy includes, enhanced brandbuilding efforts, effective use of digital media and clutter breaking communication campaigns,” he added. ITC had entered the branded snacks category in 2007 with Bingo. Meanwhile, Parle Products, makers of Parle Namkeen, is investing in research & development to launch new products to woo diverse audience. “There’s a pipeline of new products to be launched. We are looking at new categories in the snacks sector,” said Pravin Kulkarni,

News the general manager (marketing), Parle Products. Parle Products is increasing the manufacturing capacity at its four plants. The company is also extending distribution by 20% to reach out to a wider audience. It is also targeting young consumers. On August 16, Parle Products tied up with the international gaming company Rovio Entertainment to promote Parle Wafers. Like ITC, Parle Agro that sells Hippo snack brand is also betting big on innovations. “Our core strategy is to continue focus on innovation and introduce first-of-its-kind brands in India,” said Nadia Chauhan, the joint MD of Parle Agro.

Confectionery Market in India: An overview growth rates (CAGR) or both value and volume — 18.2% and 14.5% respectively between 2012-2017. The category is the expected to be the third fastest growing segment of the 15 food sectors in the country, but will remain as the fourth largest market sector. A growth in disposable income, strong marketing campaigns, and the increase of Western influences all support growth for the confectionery sector, and the domestic confectionery industry has emerged as one of the largest and most well-developed food processing sectors in the country. In value terms, chocolate was the largest category in the Indian confectionery market in 2012, with a 40.1% share. However, in terms of volume, it was the smallest category recording 20.6% of share, the report says. Chocolate continues to be of growing interest to the Indian consumer. In the period leading up to 2017, both value and Synopsis The Indian confectionery sector will post volume are expected to be above the sector strong double-digit compound annual average, at 21.6% and 19.3%, respectively. The Confectionery industry will never cease to lose its popularity; In fact it is arguably in the midst of the best growth cycle in its history. In a country like India where majority of people have a sweet tooth and find every reason to celebrate any occasion with sweets, the confectionery industry is bound to be the largest and most popular among the food processing sectors in the country. If one hast to define the term ‘Confectionery’, it would be the category of food items that are rich in sugar. The confectionery industry is broadly divided into chocolate confectionery, sugar confectionery and gums. In India this industry is further divided into chocolates, hard boiled sugar candies, lollipops, lozenges, & chewing bubble gums.

Sugar confectionery accounted for the largest volume in the sector in 2012, with a 53.6% share, the company reports. This more traditional category recorded a considerably lower value share at 36.6%. In terms of growth, the market value is forecast to see a CAGR of 17.2%, suggesting that manufacturers in this sector may take the opportunity to raise prices and launch more premium products. A projected volume CAGR of 14.9% indicates that they will succeed in this, faced with the growing demand for chocolate from the growing middle classes,” the authors assert. The smallest category, gum, recorded approximately a quarter of the market for both value and volume in 2012. However, the growth will be weak, in comparison to the other categories in the Indian confectionery sector. Whilst double digit CAGR increases are expected for both value and volume over the forecast period, at 13.3% and 9.1% respectively, growth is well below the sector average. Vol. 09, Issue 02, December, 2013

Overview Confectionary market contents The confectionery market of India includes sugar boiled confectionery, hardboiled candies, toffees and other sugarbased candies. Sugar boiled confectionery had penetrated an estimated 15% of the households only further suggesting a large potential for growth. Considering the 22% penetration in the urban market, the confectionery industry could hope to be in for great times. In India the annual per capita consumption of branded confectionery is still under 100 gms. Hard-boiled candy is reserved for the small-scale sector. There are about 5,000 units catering to the local markets. The big players have used a mix of franchise arrangements (with small units) and product formulations to get out of the reservation mode. The total contribution of the sugar boiled confectionery market in the organized sector, comprise plain, hardboiled candies, toffees, éclairs and gums is around Rs. 20 billion. Add to this the unorganized sector and the market for all types of confectionery is Rs. 50 billion. However, in terms of value the organized sector commands 60% of the market share. With the exit of MNCs and other established organized players from very low priced (25 paise) category, the unorganized sector has grown very fast. MNCs and high-powered advertising support substitute products like chewing and bubble gums. With Rs 3,250 million market share, the gum and mint market is growing at a rate 10 to 15% annually. Fruit and mint rolls being marketed by companies with sound strategies are going ahead rapidly. The organised market is a dominated giant player like Parry and Nutrine. The Perfetti India (Alpenliebe), Warner Lambert, General de Confiteria has made their presence felt. The MNC chocolate majors like Cadbury India (Googly, Gollum and Frutus) and Nestle (Polo Mints) have also jumped into the confectionery competition. Cadbury India has had a limited success. Nestle, known best for its Polo mints, has also had only a limited success in the confectionery market under Allen’s banner. Perfetti India’s Alpenliebe, however, has made it big in the recent couple of years. Indian brands like Maha Lacto with the production of 15,000 tonnes, Aashay 7000 tonnes, Coca Vol. 09, Issue 02, December, 2013

Naka 4000 tonnes, Dishum 3,000 tonnes, Honey Fab 1,500 tonnes and Eclairs are the prominent offerings in the Indian confectionery market. Several global players like Bassetts’; Maynards, Pascall and Trebor were trying to enter the Indian market. The initial entry-level brands are: Maynards’ Wine Gums; Bassett’s Liquorice of all sorts; Trebor Extra strong mints, mighty mints and softy mints.Polo, Alpenliebe, Pan Pasand, Melody, Poppins, Hajmola, Kismi and Coffy Bite have been quite successful in the Indian market. Each one has its USP and, perhaps, sells because of it. Ravalgaon’s Pan Pasand was the first candy with ‘paan’ flavour. Parle’s Melody is a toffee-chocolate-eclair hybrid. The same company’s Poppins has a unique form and sells in a variety of colour. Dabur’s Hajmola Candy tastes like a churan, a sweet and sour mixture of assorted traditional digestives. Parle’s Kismi entered as a unique toffee slab. Parry’s Coffy Bite came with a mixed taste of its own. Some of the more recent successes are Nestle’s Polo, which is a mint with a hole. Interestingly, the hole, it is claimed, is the USP. Perfetti’s Alpenliebe is a caramel candy. Alpenliebe, priced at Rs 5 for a 35 gm roll, is a success in urban areas. At the lower end of the market, the movement from unbranded to local brands is evident. There have been three large operators, Nutrine Confectionery, Parry’s Confectionery (PCL) Parle Products and Ravalgaon Sugars. With de-reservation, the large organized sector can look forward to a big potential for expansion. A fascinating market phenomenon emerged. When brands like Coffy Break, Eclairs, Coffee Bite, and Coconut Cookies hit the market in the mid-1980s, Parle’s Poppins started disappearing from urban stores. But Poppins re-appeared and is selling well. There has been a locational shift. Poppins is found in rural and semiurban general stores and the pan-beedi shops. A strategic decision to position itself in a different market saved the brand. Chewing gums and mints are a preferred worldwide with the new-style-living, but in India, the category did not boost for quite a while. It has now caught on: from Rs 500 million to Rs 3000 million in just three years and is currently placed at Rs 3,500 million. It must be due to 53

product quality and effective marketing which includes brand equity. In chewing gum, Perfetti leads, followed by Warner Lambert and then Wrigley’s, which came late and has a distribution alliance with Parry’s. In bubble gum, Perfetti leads with Big Babool, followed by GDC’s Boomer. Italian parent Perfetti entered the country in 1994. Agrolimen of Spain followed it, which is a 51:49 joint venture between General de Confiteria and Dabur India. Dabur has since withdrawn from the joint venture; General de Confiteria launched bubble gum with the brand, Boomer, which is targeted at kids for sale. Perfetti also introduced three products, Center Fresh, Big Babool and Brooklyn, with designed segmentation: Center Fresh, available in three flavours, targeting the entire market; Big Babool targeted at children in the age-group up to 5 years; Brooklyn, a stick chewing gum, meant for the teenagers. Warner Lambert has reinforced its interest, which launched Clorets chewing gum positioned as a mouth freshener while Chiclets is targeted at teenagers. Confectionery (Including Edible Gums) Demand: Past and Future Year Rs bn 2000-01 16.5 2001-02 17.6 2002-03 18.9 2003-04 20.15 2004-05 21.7 2005-06 23 2006-07 23.75 2007-08 25.4 2008-09 26.8 2009-10 28.2 2014-15 36 Market 1990-91 - 1996-97 1996-97 - 2001-02 2001-02 - 2006-07 2004-05 - 2009-10 2009-10 - 2014-15

Growth Rates 8.9% 7.3% 6.4% 5.4% 5.0%

source: Ministry of Food Processing Industries

Limitations: The confectionery industry has considerable potential for growth. However, the main issue is that the confectionery industry has today is the price point (MRP). While the input costs

Overview

Vol. 09, Issue 02, December, 2013

Overview of major ingredients like sugar, glucose, milk powder, butter and packaging material are increasing, the industry is not able to increase any MRP on products due to coinage and therefore the manufacturers have to maintain the price at the level of 50 paise and one rupee. The unorganized sector, which is much larger as compared to organised sector, is seeing more growth than the organised sector as it gets the benefit of the differential government duties and taxes. Therefore, government needs to look into these taxations very seriously specially on excise duty, which is 8 per cent, and also on the 12.5 per cent VAT. Another challenge in front of the confectionery market is that it is still not able to target the adult group in the country and is largely associated with products that cater to kids. However some companies are taking initiatives to capitalize upon it. India is the fastest growing market for adult consumption Little 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. Almost 20% of chocolate sales in at the retailer come from adult chocolates. “Adult chocolate consumption is getting a fillip from modern retail. A recent Nielsen report shows chocolate sold through modern retail has outpaced that of general trade. 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. 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 Vol. 09, Issue 02, December, 2013

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. Chocolate market is registering high growth mainly because of availability, affordability, anytimeanywhere consumption and convenience. Chocolates are now considered a fun-toeat snack rather than occasional luxuries and an important item in consumers’ grocery baskets. 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. Actually, a reverse category creation is happening with more Indians eating out

where they complete their meal with a dessert. Several Indian homes now have chocolates as dessert which increases the frequency of consumption and dark chocolate is the fastest-growing category in modern trade, growing at more than double the overall category over the last six months. Various chocolate companies are already in the product development process and are giving consumers options ranging from low calorie, energy bars to vegetarian chocolates. In March, Parle relaunched its Kismi toffee as a romance inducer targeting young adults, which immediately doubled its sales, while Nestle has launched a dark chocolate with a sweet taste specifically designed for Indian consumers. Popular premium chocolate brands like Mondelez’s Toblerone and Lindt entered the Indian market last year and, along with market leader Ferrero Rocher, they are expanding distribution beyond modern retail to kiranas. ITC is targeting the adult consumer. It recently launched a sugar-free ‘mint-o Ultra mintz’. Cadbury India has been one of the earliest brands to drive chocolate consumption amongst adults with campaigns such as ‘khane ke baad kuch meetha ho jaye’ and ‘shubh arambh’ for its brands like Dairy Milk, Five Star, Perk and Gems.

Exclusive Interview

We have a strong base of knowledge and trained teams NSF International, the public health and Safety Company, is committed to protecting and improving human health around the globe through the provision of assurance and certification services, training, testing and consulting to the water and food industries. NSF services provide consumers with the confidence that what they eat and drink meets or exceeds globally accepted standards of health, safety and provenance. NSF is the leading international supplier of food assurance and certification services to businesses in the global food supply chain.

Jyoti Bhasin

yoti Bhasin, Country Head of NSF in India is the one who is always on the wheels, ready for her clients to solve any issue related to food safety in their companies. Having a great team to support Jyoti has become a well known name in branded food companies for food safety solutions. She is discussing with current issues of the industry with our Editorial Team, below. What are the major food safety issues you see with the Indian Snacks & Namkeen segment? The risks in the segment are similar to what we see in other industries, since the products are ambient (room temperature storage) and have high shelf life ones â&#x20AC;&#x201C;it helps in the best consumer interest though. If we focus on two areas of improvement with respect to food safety for the industry we could address a large part of the problem and it will help drive development of systems , there is a general need on all aspects of the food safety management systems to be addressed and the spectrum on businesses are huge- you have at the top end manufacturers with the state of the art facilities and certified food safety systems and on the other end there is the small operator with no set processes and systems at all. A focus on three aspects should help address many a concerns a. Manpower education and training b. Facility - hygiene and sanitation c. Traceability and recall of ingredients and products

We have both modern and traditional styles of snacks being sold in the open market, branded and non-branded too. As a food safety expert what are your observations and suggestions to the processors? The basic food safety system is the same across spectrum of these products, they all need to educate their teams, Maintain plant hygiene and know their suppliers and buyers( trace ingredients and recall product capacity). Anyone can do food safety and develop systems, it is good to have an expert but the processors know their product best. I would urge them to invest time to review their current systems and facilities and challenge set practices if required. Processors should review where they are and set a bench mark for improvement for them. Change will not happen in a day but each one of us can set for ourselves targets for improvement and milestones. At the lowest level businesses could target education of food handlers on basic GMP and GHP and facilities hygienic conditions, the more sophisticated ones need to look at systems and procedures and then a third party validation of those systems and procedures. FSSA has been implemented for snacks and namkeem segment as well, do you see some movement interms of awareness and compliance of the rules among processors presently? FSSA is now becoming more and more known to market and gradually more FBOâ&#x20AC;&#x2122;s are getting aware of their responsibilities. India is a huge country and also has a state and central structures, with the structures and size of the country the awareness is moving forward at a reasonable pace. 56

Indian snacks including potato based and traditional nameeks have a great demand in the global market where the quality standards are set from years, do you see that processors are able to meet the required standards before the exports or they face issues related to food safety? We need to meet the standards of the importing country to export our products to their destinations, they will have specific standards and labeling requirements starting from production of raw material to transportation of the finished product to the final destination. Many a timeâ&#x20AC;&#x2122;s Indian producers do not meet the required in country standards of these importers at one or more level. There is a need for Export oriented manufacturers to have robust food safety management system which demonstrate good food safety knowledge, functional food safety system, control of their suppliers etc. To maintain a global standard company what needs to be done in a snack food factory on food safety front, can you elaborate stepwise and how helpful will be your company for this segment? We have a strong base of knowledge and trained teams who understand Global markets and business requirements. India needs a road map approach which we have capability to support. Under the road map we need to clearly spell out where we are and where we would like to be and also define time bound milestones on this food safety journey. Our sector specific knowledge coupled with Food safety domain expertise allows us to work with the industry and help them build capacities and increase their market scope. Vol. 09, Issue 02, December, 2013

NSF INTERNATIONAL ThE MOST TRuSTEd NAME IN FOOd SAFETy™ Food Equipment Commercial foodservice equipment with the NSF certification receive guaranteed regulatory acceptance in North America and improved acceptance worldwide. The NSF mark is specified by health departments, restaurant buyers and specifiers. Our services include: Physical Evaluation • Material Review • Performance Testing • Compliance Audits • Certification Global Food Safety Initiative (GFSI) Many of the world’s largest food retailers are mandating supplier certification to GFSI schemes, which include SQF, BRC, IFS, FSSC, GLOBALG.A.P., and BAP. NSF is the leading global certifier to GFSI benchmarked standards. Our services include: Auditing • Testing • Certification • Training & Education Beverage Quality NSF offers integrated safety and quality assurance services for bottlers, retailers, distributors and suppliers of beverages and packaged ice. Our services include: Analysis • Testing • Auditing • Certifications Nonfood Compounds NSF is the only independent, third-party organization that offers product registration for nonfood compounds such H1 lubricants, cleaners and water treatment chemicals used in food and beverage processing. Our services include: ISO 21469 Certification • Product Registration • Toxicology Assessment • Risk Assessment

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Progress through innovation

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• Process Techhnology Automation • Packaging Technlogy • Automation • Processing Control & Regulation Technology • Food Retailling • Food Safety & Quality Mangement • Environment Technology, Biotechnology • Conveying Transport & Storage Installations • Dispensing & Vending Machines • Food Service

• Manufacturers/Importers and wholesalers of Food & Beverages • Dairy Products • Bread and Bakery • Oil & Fats • Frozen Food / Chilled Food • Fine Food / Gourmet • Fish & Sea Food / Meat & Poultry • Trade Agencies • Nutraceuticals Products / Organic Foods • Functional Food • Ingredients, Colours & Additives

Visitor Profile • CEO’s & Top Executives from Food & Beverage Industry • Sr. Executives from Production, Quality Control, Maintenance • Purchase Departments • Professionals from R & D Institution, Supply Chain Distributors • F & B Managers etc. • Top officials from Regulatory Agencies of Central & State Governments • Food & Beverage Consultants • Hypermarkets / Supermarkets • Grocery Stores / Convenience • Stores / Retailers • Departmental Stores • Food and Drink Importers / Distributors / Wholesalers • Foodservices and Hospitality Counsulting • Hotels / Resorts Management • Foodservice Government, Military, School, Hospital • Foodservice - Industrial • Bakeries / Confectionaries

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