Oil & Food Journal February 2015

Vol 10 Issue 4 Feb 2015 Rs. 100/-

Indian

confectionery

10th Volume

marketNew and trendy brands all over

Coverstory

The Indian

halal market analysis and views The effect of

Social media

on food industry

Analysis & trends of Indian edible oil market

Vol. 10 Issue 04 FEBRUARY 2015

Vol. 10 Issue 04 FEBRUARY 2015

Vol. 10 Issue 04 FEBRUARY 2015

Vol. 10 Issue 04 FEBRUARY 2015

Vol. 10 Issue 04 FEBRUARY 2015

CONTENTS

52

9

11

52

Food fest in Dubai to be attended by 270 Indian firms and trade bodies

53

Lack of Food Processing Units wastes 30 per cent Fruits and Vegetables in Maharashtra

53

Israel’s ICL Food Specialties to acquire Prolactal

54

Need for global cooperation in Coconut farming

54

Banks need to step up their disbursements to the farm sector: Fadnavis

56

Nabard hook credit potential of Rs1.08 lakh crore for Agri, Rural sectors in Karnataka

56

Dalmia Bharat Sugar obtains one more sugar mill in Maharashtra

Acceleration of Agri GDP growth in 11th plan

Where food crises and global conflic 14

Analysis and trends of Indian edible oil market 22 23

57

57

Mother Dairy declared as a “public authority” by Delhi high court under RTI Act Starbucks to offer Coconut Milk as Dairy alternative

48

The effect of Social media on food industry

Indian confectionery market New and trendy brands all over 31

40

EMERGING CHALLENGES & PROSPECTS OF FMCG PRODUCT DEVELOPMENT IN INDIA

The Indian

halal market analysis and views

Vol. 10 Issue 04 FEBRUARY 2015

EDITORIAL

Vol 10 Issue 4 February 2015

A-83,Ground Floor,

Dear readers, The food processing industry of India is also going places by creating its own niche in the international market and its export market has grown drastically. But Basmati rice, among the key drivers for export earnings, has been hit as Iran is not allowing imports due to sufficient stocks. India exported 3.7-3.8 million tonnes (mt) of Basmati rice worth Rs 29,291 crore last fiscal, with Iran importing about 1.4 mt.

The authority, under the Ministry of Commerce with 22 scheduled products under its purview, undertook trade worth $22 billion in 2013-14 and expects a slight decline this fiscal. India exported about Rs. 87,553 crore worth of agri-goods between AprilNovember 2014 and had seen exports hit Rs. 1.37 lakh crore overall last fiscal.

While beef exports will continue to post healthy returns, according to statistics provided by the Agricultural and Processed Food Products Export Development Authority (APEDA). Buffalo meat exports, which posted significant growth over the last few years touching 1.5 mt worth Rs 26,458 crore in 2013-14, have continued an upward trajectory.

India exported 817,844 tonnes of buffalo meat worth Rs 16,083 crore between AprilOctober.

Grapes, processed foods and biscuits and confectionaries hold considerable potential for growth and APEDA would be undertaking efforts to promote these categories in 201516.

Our grapes have the advantage of being harvested in a window when others do not, it's an advantage and our penetration in key markets like China, Taiwan and the US has been low. Processed foods, particularly mango pulp, juices and juice concentrates, are another area holding promise.

Biscuits and confectionaries' exports, particularly to African countries, have grown from a base of $100 million in 2011-12 to about $170 million last fiscal. It could hit $350-400 million soon.

Another issue regarding the meat industry is the use of antibiotics. India needs to implement a comprehensive set of regulations including banning of antibiotic use as growth promoters in the poultry industry. Not doing this will put lives of people at risk.

Indians are developing resistance to antibiotics -- and are falling prey to a host of otherwise curable ailments. Some of this resistance might be due to large-scale unregulated use of antibiotics in the poultry and meat industry.

Keeping that in mind, the FSSAI's draft order is the first big step in the right direction to regulate overuse and misuse of antibiotics. It will help in stemming antibiotic resistance.

Food Safety and Standards Authority of India's (FSSAI) thus has drafted order which proposes to put curbs on the rampant use of antibiotics as a growth promoter in foodproducing animals in India, such as chicken has been welcomed by the entire food industry.

The other issue pertaining in my brain is the food wastage issue in Maharashtra. The state with a processing capacity of one lakh metric tonnes has failed to exploit the surplus vegetables and fruits produced in local markets thus resulting in nearly 30 per cent of the fruits and vegetables produced by farmers to be wasted.

According to the data furnished by government only 1.2 per cent of the fruits and vegetables are processed. While 70 per cent of the fruits and vegetables are consumed which are marketed as fresh there is a huge wastage of 30 per cent. The bulk of vegetables and fruits which goes as waste have the potential to provide for the food processing sector.

Fadnavis has said that they are making a coordinated effort to promote the food processing industry and curb food wastage. The emphasis is on enhance the food processing capacity and value chain so as to ensure farmers get better remuneration and also benefits the consumers.

Maharashtra will roll out "a red carpet and not indulge in red tape" for investors in the state, besides letting them pick the sector of their choice to make investments, Chief Minister Devendra Fadnavis said in an industrial gathering.

He also added, "We have a large land bank, uninterrupted power supply to industries and the state has a distinct identity. I adopted a cafeteria approach and prevailed upon potential investors to choose the sector of their choice to make investments, and the government would provide a red carpet and not indulge in red tape.

Maharashtra is already leading in food processing activities on the other hand JETRO has promised to facilitate investments from Japanese companies planning to enter/expand operations in India especially in food processing.

Good luck

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FOOD CRY

W

orld War III is unimaginable for many, but some experts believe that not only is this degree of global conflict imminent, but it may be instigated not by military tensions, oil and gas, or nuclear threats, but instead by, of all things, food.

As it stands, countries across the globe are enduring food crises, and the U.N.'s Food & Agriculture Organization (FAO) estimates that about 840 million people in the world are undernourished, including the one in four children under the age of 5 who is stunted because of malnutrition.

Assistant director-general of U.N. FAO Asia-Pacific Hiroyuki Konumathinks that social and political unrest, civil wars, and terrorism could all be possible results of food crises, and “world security as a

whole might be affected.” Such consequences could happen unless the world increases its output of food production 60% by mid-century. This includes maintaining a stable growth rate at about 1% to have an even theoretical opportunity to circumvent severe shortages. These needs are due to the growing global population, which is expected to reach 9 billion by 2050 while demand for food will rise rapidly.

Where the problems lie Exacerbating this issue is the fact that the world is spending less on agricultural research, to the dismay of scientists who believe global food production may not sustain the increased demand. The pace of investment growth has slowed from 3.63 percent per year (after inflation) during 1950–69, to 1.79 percent during 1970–89, to 0.94 percent during 1990–

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Where

food crises & global conflict could collide

FOOD CRY 2009.” Decreased growth in agricultural research and development spending has slowed across the world as a whole, but it is even slower in high-income countries.

Water scarcity is another problem, including in major food-producing nations like China, as well as climate change. Extreme weather events are having a severe effect on crops, which have been devastated in countries like Australia, Canada, China,India, Russia, and the U.S., namely due to floods and

droughts. An Intergovernmental Panel on Climate change recently warned that climate change may result in a 2% drop each decade of this century.

Rising food costs also contribute to poor food security across the world as prices remain high and volatile. Higher food costs inhibit lower socioeconomic people's access to food, which contributes to the FAO's disturbing figure of global malnutrition. In addition to an inability for people to feed themselves, poverty can also reduce food production, such as some African farmers being unable to afford irrigation and fertilizers to provide their regions with food.

Still another issue for decreased food production is the fact that many farmers are turning crops like soy, corn, and sugar into sources for biofuel rather than edible

consumption, which means these foods are taken away from people to eat.

Could these shortages lead to a major global conflict?

Studies suggest that the food crisis could begin as early as 2030, just a short 15 years from now, particularly in areas such as East Asia and Sub-Saharan Africa.

Both regions have significant problems with domestic food production.

Some experts believe that, to secure enough food resources for their populations, countries may go to war over the increasingly scarce food supply. This could be due in part to warring parties blocking aid and commercial food deliveries to areas supporting their enemies, despite the fact that such a practice breaks international humanitarian law.

Conflict also leads to lack of food supply for populations as people become displaced and forced from their homes, jobs, and income and thus cannot buy food to feed themselves. Displaced farmers are also unable to produce their normal crops, contributing still more to food shortages in certain countries.

Food insecurity is a major threat to world peace and could potentially incite violent

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conflict between countries across the world. Thus, the U.N. and other governmental bodies are desperately trying to find ways to solve the problem before it becomes something they cannot control.

Debates over how to solve the problem To combat the problem, the U.N. body has outlined two primary options: increasing arable land areas as well as productivity rates. A lack of available arable land and more sluggish growth rates in staple crops has complicated efforts to bolster these two pillars of f o o d s e c u r i t y.

I n c r e a s e d production is a cornerstone of solving food crises, but this cannot be done without also increasing the land on which farmers can grow their crops.

A lot of food rots because of bad storage facilities in third world countries, and bad infrastructure in those areas prevents delivery of food to a lot of the poor. Thus, if countries can figure out how to better distribute and store food, this could be a viable way out of a global food shortage.

One common way to solve this problem touted by some food companies, like Monsanto, is to create genetically modified foods en masse. However, GMO food production has endured extensive criticism and backlash in many countries as being an unhealthy and unnatural choice of food.

Between better production, land availability, storage, and infrastructure, all these methods could help solve the problem of potential food crises, which could inevitably lead to increased global unrest.

EDIBLE OIL

Analysis & trends of Indian edible oil market

t

he Indian edible oil Industry is highly fragmented with extreme variation in the consumption pattern of Indian consumers of edible oil.

Apart from cooking, edible oils can be used for a number of other uses and have applications in different industries. The Indian edible oil market continues to be underpenetrated and thereby holds immense business opportunities.

Vegetable oil consumption has increased due to rise in overall household income, surging retail sector, increasing health awareness, growing population and increasing demand.

However, increasing demand has not matched with the level of production and thereby facilitating the imports of edible oil in the country. The Indian edible oil market is the fourth largest in the world after the U.S.A, China and Brazil and

accounts for around 9 percent of the world's oil seed production. Provided the positive macro and demographic fundamentals, the edible oil market has a favorable demand growth outlook over the medium-to-long term.

The Indian edible oil market is expected to witness robust expansion in the near future. However, rising edible oil prices and low yield per hectare are expected to be the challenges for this sector. Mergers and acquisitions are a major trend in the Indian edible oil industry.

Importance of Edible Oils in the Country's Economy Oilseeds and edible oils are two of the most sensitive essential commodities.

India is one of the largest producer of oilseeds in the world and this sector occupies an important position in the

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agricultural economy, accounting for the estimated production of 32.98 million tons of nine cultivated oilseeds during the year 2013-14 (November-October) as per 2nd Advance estimates released by the Ministry of Agriculture on 14.02.2014.

India contributes about 6-7% of the world oilseeds production. Export of oil meals, oilseeds and minor oils has increased from 6.31 million tons in the financial year 2008-09 to 7.41 million tons in the financial year 2011-12. In terms of value, realization has gone up from Rs. 13165 crores to Rs.21297 crores for the respective years.

Types of Oils commonly in use in India India is fortunate in having a wide range of oilseeds crops grown in its different agro climatic zones. Groundnut, mustard/rapeseed, sesame, safflower,

EDIBLE OIL linseed, Niger seed/castor are the major traditionally cultivated oilseeds.

Soyabean and sunflower have also assumed importance in recent years.

Coconut is most important amongst the plantation crops. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar Islands.

Among the non-conventional oils, ricebran oil and cottonseed oil are the most important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils. Figures pertaining to estimated production of major cultivated oilseeds, availability of edible oils from all domestic sources (from Domestic and Import Sources) during the last ten years are as under: Consumption Pattern of Edible Oils in India India is a vast country and inhabitants of several of its regions have developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard/rapeseed oil. Likewise several pockets in the South have a preference for coconut and sesame oil.

Inhabitants of northern plain are basically fat consumers and therefore, prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture.

Vanaspati has an important role in our edible oil economy. Its production is about 1.2 million tonnes annually. It has around 10% share of the edible oil market. It has the ability to absorb a heterogeneous variety of oils, which do not generally find direct marketing opportunities because of consumers' preference for traditional oils such as groundnut oil, mustard oil, sesame oil etc.

For example, newer oils like soyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and forest origin had found their way to the edible pool largely through vanaspati route.

Of late, things have changed. Through technological means such as refining, bleaching and de-odouraisation, all oils have been rendered practically colorless, odorless and tasteless and, therefore, have become easily interchangeable in the kitchen. Newer oils which were not

known before have entered the kitchen, like those of cottonseed, sunflower, palm oil or its liquid fraction (palmolein), soyabean and ricebran. These tend to have a strong and distinctive taste preferred by most traditional customers.

The share of raw oil, refined oil and vanaspati in the total edible oil market is estimated roughly at 35%, 55% and 10% respectively. About 50% of domestic demand of edible oils is met through imports out of which palm oil constitutes about 80% of imports. Therefore, the consumption of refined palm oil (RBD palmolein) and in blending with other oils has increased substantially over the years specially in hotels, restaurants and in preparation of wide varieties of food products.

during 2013-14 (Nov.-Oct.). The other dominant feature which has had significant impact on the present status of edible oilseeds/oil industry has been the programme of liberalization under which the Government's economic policy allowing greater freedom to the open market and encourages healthy competition and self regulation rather than protection and control. Controls and regulations have been relaxed resulting in a highly competitive market dominated by both domestic and multinational players.

Source: Ministry of Agriculture. Based on Final Advance Estimates (dated 14.12.2014) released by the Ministry of Agriculture.

'Make in India' initiative needs to be imbibed in Indian edible oil sector

Major Features of Edible Oil Economy There are two major features, which have significantly contributed to the development of this sector. One was the setting up of the Technology Mission on Oilseeds in 1986. This gave a thrust to Government's efforts for augmenting the production of oilseeds. This is evident by the very impressive increase in the

India has become the largest importer of edible oil in the world. The country imported around 11.8 million tonnes of edible oil last year from October 2013 to November 2014, which is in record itself.

Due to unfavorable weather conditions in

production of oilseeds from about 11.3 million tonnes in 1986-87 to 24.8 million tonnes in 1998-99. There was some setback in 1999-2000 because of the unseasonal rain followed by inclement weather. The production of oilseeds declined to 20.7 million tonnes in 19992000. However, the oilseeds production went up to 27.98 million tons in 2005-06.

As per the Final advance estimates by Ministry of Agriculture dated 14.2.2014, the production of nine major oilseeds is about 30.9 million tons during 2012-13 (Nov.-Oct.) and as per the Second advance estimates dated 14.02.2014, it is estimated to be about 33.0 million tons

2014 there has been 26 percent increase in edible oil import in November.

Assumptions are that import will further increase to all time high to 13 million tonnes of edible oils this year that began from November 2014. Nation's dependency on imported oil will reach alarming levels up to 60-65 percent.

India needs to learn from countries like Malaysia and Italy, who have managed to sell their edible oil worldwide, which in return has contributed to their economy.

Government of India should formulate similar encouraging policy towards Indian oilseeds & edible oil so that farmers, consumers and manufacturers

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EDIBLE OIL benefit from it. With right policies, India can become self-dependent in edible oils and contribute to the economy by exporting it to the world. There is a need to have a vision and a plan for this industry. The Central government should establish a 'Mustard Oil Development Board' for the integrated development of the mustard oil industry in the country, with focus on higher productivity and value addition.

There are few main reasons behind the increase in edible oil imports. First, oilseed production in the country does not get the appropriate incentives and encouragement. Second, because of free trade agreement with ASEAN countries, there is a huge influx of Palmolive and soybean oil from countries like Malaysia and Indonesia in the Indian market at very low prices. Also, internationally, there is a huge increase in the production of oilseeds and edible oil as a result there is a sharp decline in international edible oil prices. Whereas in India, there is reduction in oilseed production the cost of production is also increasing steadily. Even though, government has hiked the import duty on crude and refined vegetableoils in a bid to help farmers and the refinery industry.

Due to El Nino, this year Rabi crops has decreased drastically. According to the latest data, about 511 million hectares so far has Rabi sowing, about 5 per cent lower than the previous year. Mustard oilseeds sowing acreage has decreased by about 5-7 per cent.

Due to heavy yield of oilseeds worldwide, international edible oil prices are quite low at the moment and the foreign currency that the India has to shell out currently to import edible oil is not seen as a major economic pressure. But there is no assurance that world's increased oilseed production and cheap prices would carry on for the longtime.

Due to this reason, it is imperative that India must have a policy and framework

in place which encourages increase in domestic oilseed production in the country. The new technology and the use of high yielding varieties can give a fresh boost to our farming system as well as indigenous edible oil Industry. This is not the case throughout to save foreign exchange but increasing domestic oilseed production should be linked to of food security program and Prime Ministers 'Make in India' initiative needs to be imbibed in Indian edible oil sector as well.

All going for the edible oil Falling prices of imported oil and a marketing drive that often plays on health concerns over unbranded sales are

to tempt buyers at a time when incomes are rising.

The quality of branded edible oil seems to be better. The push on branded oil also comes as companies look to shake losses at their Indian refining units after Indonesia and Malaysia started offering refined palm products at discounts over crude palm oil.

A touch of Bollywood Companies are spending big on marketing and setting up sales networks in rural areas. Most companies are now focused in branding and marketing. Like Ruchi soya does not want to build any more refining capacity but focus on branding and ads.

The company recently roped in Bollywood actress Madhuri Dixit to star in a TV advert featuring a mother happily preparing a family meal using the Mahakosh brand of soybean oil.

Such campaigns follow findings from food research companies that said some unpacked edible oil was tainted with substances like oil from argemone, a species of poppy that resembles rapeseed but can be harmful.

That stoked more general concerns over the content of unlabelled oil products.

prompting more Indians to switch to products sold by big companies such as Ruchi Soya, Adani Willmar, Cargill and Bunge.

India's top edible oil importer Ruchi Soya sees the country's $8 billion branded oil market growing by up to 15 percent in 2015.

That's good news for overseas suppliers to the world's biggest edible oil importer, with shipments of palm oil from Indonesia and Malaysia, as well as soyoil from Brazil and Argentina, making up over half of branded sales.

With international prices for palm oil, sunflower oil and soyoil dropping this year on bumper harvests, major edible oil companies have cut prices for their higher-margin branded products, hoping

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All this is helping the shift towards consumers picking more and more brands in the edible oil category.

India's edible oil consumption is expected to rise 5.6 per cent to a record 19.3 million tonnes in the 2014/15 marketing year.

In India, choice of edible oil often varies with region, with soyoil and sunflower oil typically favored in the west, and rapeseed oil popular in the east.

Only 9 per cent of rural India consumes branded oils compared to 31 per cent in urban areas, but due to television people are becoming brand conscious and rural India is trying to shift to branded edible oil.

NEW EFFECTS

s

ocialmedia is an imperative public relations and marketing tool for companies to utilize in their business practices. Itallows companies to have more of a relationship with their customers and acts as another means of information. However, since itcannot be regulated, usersare free to post what they please about the company, whether it is good, bad or ugly. Social media is developing rapidly and there are new platforms daily, making it necessary for companies to not only be familiar with those platforms, but also know how to reach the consumerthrough them.

Social media marketing helps a company forms a relationship and connect with their audience. Tools such as Twitter, Facebook, and various blog sites and foursquare are used to fuse a connection.

It is then up to the company to ensure that a relationship develops. Social media is widespread and it is imperative to remain ahead of the competition.

Social Media has once again proven that it is a fundamental business objective for companies who want to increase their brand exposure. In the food industry this is no different. A recent survey it was

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The effect of

Social media on food industry

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NEW EFFECTS discovered that over ninety percent of food industry executives agree that social media has completely changed the way consumers interact with their brand.

Once thought of as an "extra" in marketing departments, social media is now a must-have, and one of the best ways to get results. It is estimated that over twenty thousand companies have a Facebook page for their business. With close to a billion people on Facebook, there is the ability for companies to target nearly any consumer group. And that's just Facebook. Twitter, LinkedIn, YouTube, and others, continue to grow in importance for companies wanting to create dynamic and interactive online

brands.

This is precisely the reason many food companies have started to look at their social strategies more carefully. For example, the lead digital marketer from Sainsbury's, a British grocery chain, claims that social media has been a great way for the company to reach out to their consumers via a more "holistic approach." The ability for the company to have an "open dialogue" with customers gives Sainsbury's a way to improve their business, thanks to direct feedback from customers via social media.

In all cases, and regardless of industry, it's evident that social media plays a dynamic role in the consumer and brand relationship. It helps spread company news and brand awareness, while still

keeping the company approachable in the eyes of the consumer. Moreover, companies who keep their social media accounts interactive, either via contests or other campaigns, usually have the best online rapport with their customers and the ability to build their online reputation faster than companies that are inactive in the social media space.

Cadbury, for example, held a special campaign called "Spots v Stripes" during the 2012 Olympics that was promoted via social media. The campaign reached over 120,000 people who participated in their specially sponsored events. This may be just one example of how a food industry based business has created a viral

marketing campaign with social media, but it certainly is not the only one.

As social media continues to grow in importance, it will invariably become more and more important for brands in all industries to be engaged with consumers online. If a social media strategy is not already a necessity in the food industry (which I would argue it is), it will be soon enough for any business that wants to stay relevant in today's marketing world.

The use of social, digital and mobile marketing channels continues to gain ground, being increasingly utilized by food, beverage, and hospitality companies to reach larger audiences, engage consumers, and leverage realtime information on what moves and

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influences their customers. Social data can be used as a resource to understand customer demands, demographics, and preferences and then adapt as needed.

Social channels thrive on immediacy, engagement, and authentic responses. By finding new ways to engage their customers through these channels; food, beverage, and hospitality companies can also create more diverse content and improve their brand recognition.

With social sites and apps like Facebook, Twitter, Instagram, Pinterest, Snapchat and Vine; the platforms a food, beverage business can use to promote itself are limitless and constantly changing.

Brands have the opportunity to make their fans and customers a part of the product decision making process, harness employees as brand advocates, and develop a new pipeline for customer loyalty and acquisition. While the voice of the customer has always been important, it has become significantly more demanding and powerful as social platforms has also become hubs for a user's daily life, revealing details such as identity, interests, activities, and location. Consumers have more opportunities than ever to research products and services before purchase and to find peer reviews.

The KPMG 2013 Food and Beverage Industry Outlook Survey reported that social media and consumer engagement through mobile and online channels are having the most significant impact on their business out of six categories.

Food, beverage, and hospitality brands need to provide consumers with a fun experience and allow them to take marketing into their own hands to generate buzz and communicate the brand's message in memorable ways.

CocaCola is active on numerous social media platforms. On the company's website, there is direct links to take the viewer to each social networking site the company is involved with. Once a viewer travels to any of those pages, there are links and buttons to direct the viewer to other Coca-Cola social media pages.

Currently the homepage has 'buttons' that link viewers to CocaCola's profiles on Flickr, Twitter, Facebook and YouTube.

Posts on Twitter and Facebook are

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NEW EFFECTS conversational, engaging and rarely have a promotional feel. Interaction via YouTube is daily, new videos are updated frequently. Flickr photos are updated at events Coca-Cola holds or sponsors, the most recent being the 24hour session with Maroon 5. On Facebook, CocaCola attempts to lessen the effects of the unregulated nature of the groundswell by establishing “House Rules” for those wishing to interact with Coca cola.

With millions of Facebook fans and Twitter followers, Pepsi is one of the few big corporations who have a good handle on social media.The biggest social media challenge for businesses is embracing innovation. "Social media doesn't have to be a conversation. It could be a sweepstakes exclusive to the Twitter community or a contest only for Facebook participants.

resources will allow. If you don't have the means to have a person on Twitter 24/7, then don't do it that way....Have Follow Fridays were you spend two hours talking to the community if that's all you have to work with. There really are no set rules."

Companies should use social media to encourage brand dialogue among loyal users. Facebook, Twitter and other social networks, and give people who are passionate about products and companies a platform to express it.

Nestlé has been one of the leading players in the food & beverage industry which has strongly focused on developing and implementing digital and social media strategy. The company is leveraging social media to drive marketing, innovation and leadership potential.

Moreover, capitalizing on digital and social media channels, the company is focusing on transforming its operations, going beyond marketing to drive cost and supply chain efficiencies. The company's strategy has redefined dynamics of social media marketing and has raised the benchmarks of effective social media practices.

Mondelez is another company that is highly dedicated to market its products via social media. For example, it plans to replicate campaigns similar to Cadbury Dairy Milk's Twitter campaign during the Indian Premier League last year in other markets. The maker of Dairy Milk chocolate and Oreo cookies will allocate 10-12 per cent of its overall media spends in India in 2014 on digital media, up from less than 1 per cent just three years ago.

CocaCola is a market leader in the food and beverage industry and is known for its highsales and community involvement. The company is actively involved in several social media platforms and their engagement as a global brand can be learned from, as they are more active than their competitors.

Coca-Cola is currently globally involved with and contains various facts and history about Coca Cola. Coca-Cola follows a number of their followers and r e s p o n d s t o t w e e t s i n a t i m e l y, conversationaland personable manner.

The real Pepsi social media goal was " less about what's the big strategy?And more aboutwhat are the small wins?

How does Pepsi prove internally to the organization that these are viable platforms, and then prove successes within the communities? Scaling social communities is also a challenge. It takes a lot of work and media dollars.

PepsiCo is a mammoth of a company, with entire teams dedicated to measuring social media interaction. But the startups that lack such extensive man-power should doonly as much as their

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Earlier this month, Mondelez announced a global advertising deal with Facebook across 52 countries including India.

India is a test ground for many digital campaigns, being the second largest Facebook market in the world and a substantial market for Mondelez. The #shubhaarambh campaign for Cadbury Dairy Milk during the IPL last year generated huge buzz around the brand by encouraging conversations around the hashtag.

The hashtag was pushed by Twitter, and Mondelez has seen more effectiveness of this campaign than the TV ad, which is

NEW EFFECTS really a big step change you can drive. It led to consumer participation in real time, and Mondelez is replicating similar campaigns in Europe, the US and Canada.

Three years ago, Cadbury India was spending 2 per cent of its ad spends on digital media...in 2015 it will be 10-12 per cent. A lot of the campaigns are breaking on social media first. In case of

Bourneville, for five-six months, the campaign ran only on digital. A lot of the company's advertising, whether it's Oreo, Dairy Milk or Bourneville, is first being released on Facebook, Twitter and YouTube, before television.

Two of the biggest seasonal shifts the company is seeing in India are increase in social media and mobility and thus their investments are continuing to shift that way. Mondelez has recently stricken a deal with Facebook which is a large driver is India. The other piece is mobility — there is a continuous huge growth in mobile. Smartphone penetration will probably double over the next year.

It's not about how that one tweet worked

products and promotions.

in isolation; it's about how it helped television to drive sales. It is about integrating the channels and how all of them can work together. How one Facebook post can impact returns on investment of the ecosystem.

One major effect of the advent of social media is that consumers have recognized they have a voice of their own, as well as an audience for their viewpoints.

Social media has changed how brands engage with consumers. Companies are taking to social media with the primary aim of seeking greater levels of

But there is still uncertainty among marketers over how to make the most of social media. Surveys claim there is not a clear consensus about how best to utilize

engagement with their customers.

social media and there is the problem of how to measure the return of on investing in social media campaigns.

Furthermore, the perception exists in many quarters that businesses not using social media risk missing out on an increasingly powerful branding and promotional opportunity.

Social media is now an integral part of marketing strategies, the potential of using networks to enhance brand communication but also the challenges manufacturers and retailers face.

Retailers are also using social media to involve customers in the promotion of products and are recognizing social media users are highly likely to chat to others about in-store experiences,

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Many businesses are still uncertain as to how to use social media for maximum advantage. There are misperceptions among business and marketing personnel about the role social media should play.

Nevertheless, social media today has shadowed many marketing techniques and has mounted the step of success to be the best medium of advertisement as well as the best way to interact with the consumers.

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NEW TRENDS

Indian

confectionery

market New and trendy brands all over

t

he last couple of years have seen a spate of product innovations, value-additions and new launches in the Indian confectionery market.

According to industry experts, with young consumers looking for newer format and flavors in confectionery, manufacturers were induced to cash in on the demand and expand their product range. Dabur, for instance, extended its popular digestive brand Hajmola, and reinstated its presence in the pure confectionery segment with the launch of the Natkhat Amrud variant and Hajmola Chuzkara.

Hajmola has been a popular digestive in tablet and candy format in Dabur's portfolio. Market experts feel that the popularity of Dabur Hajmola will benefit Chuzkara as well. The Indian confectionery market is one of the fastestgrowing in the world with a strong double-digit annual CAGR. Hajmola Chuzkara, with its unique blend of natural ingredients and good taste is liked

- By Basma Husain by consumers across all age groups.

Chuzkara - a semi-liquid sweet and sour candy - has further created room for more innovations and value-addition by other brands. In 2013, Perfetti Van Melle, the ruling confectionery player in India, expanded its Alpenliebe brand basket with the launch of Alpenliebe Spicey 1, spicy chilli and sweet mango in one tangy candy. The product was created with flavors to suit the Indian taste bud and liking for spicy, sweet and sour flavours.

In the same year, Wrigley India enlarged the famous Boomer bubble gums range with the launch of Boomer jelly variant in mango flavor. This launch followed that of Juzt Jelly by Perfetti Van Melle in late 2012.

As per a Nielsen report, the confectionery category grew at 8 percent in 2014. While the confectionery market has always been fragmented and continues to be so with more than 3,200 brands operating in the category, growth has been driven by the emergence of new segments like Jelly,

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which has gained quick consumer acceptance. The category has also seen premiumization to some extent but needs to be accelerated in the coming years.

Apart from sugar-based candies, the confectionery space has witnessed a lot of action in the chocolate segment. Cadbury India, part of Mondelez International, launched Cadbury 5Star Chomp in April 2014. A new entrant under the Cadbury 5Star umbrella, it offers consumers a combination of chocolate, caramel and nougat along with the crunchiness of peanuts, and is priced an affordable Rs 15 for a 30 gm pack. The product has been developed keeping in mind the evolving consumer palate. Cadbury 5Star Chomp will introduce consumers to a completely new chocolate format experience."

Tapping the rising affluent urban demographics, and keeping pace with market trends, Nestle India launched chocolate brand Alpino targeted at older consumers in metro cities. Alpino has

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Vol. 10 Issue 04 FEBRUARY 2015

NEW TRENDS caught the attention of manufacturers, as a result of which , the market is seeing cereal bars being introduced, which are currently amongst the fastest growing category in the Indian confectionery market, even while toffees, candies, caramels and nougat continued to record the fastest growth (estimated at 23 percent) in 2013. This fast growth in sales was mainly due to the growing popularity of caramels and their growing acceptance as cheaper alternatives to chocolates.

Additionally, the increased visibility of caramel brands, including Alpenliebe, in modern retail stores and kirana stores, helped them gain more sales.

been positioned as a premium chocolate, priced at Rs 25 for a pack of two bitesized chocolates. Apart from additions by existing players, the category saw new entrees like Schogetten, a leading German chocolate brand from Ludwig Schokolade GmbH (-A Member of KrÜger Group-). Schogetten comes in portioned chocolate bar format in 14 flavours, and is available in a 100 gm pack containing 18 portioned pieces, and priced Rs125.

share to touch 15 percent of the market share in 2014. The company's strong retail sales includes through small cigarette shops located in rural areas and tier II cities, helped the company strengthen its value share. Other leading brands with considerable presence are Ravalgaon Sugar Farms, Wrigley India, and Parle Products. Domestic manufacturer Ravalgaon Sugar Farms continued to invest in combating the hold of the multinationals in India.

Confectionery is an important segment in the food and grocery retail business. The younger generation in the country, who are well travelled and look for newer formats and flavours in the confectionery segment has led to increase in demand.

This segment has been witnessing new product launches and is an important section for any retailer as it targets children, adults, young and old, but still the category requires more visibility and a stronger positioning.”

In the chocolate sub-segment, in 2014, Cadbury India continued to dominate with a value share of 56 percent mainly due to its long established presence and portfolio of popular brands including 5 Star and Cadbury Dairy Milk, and Nestle India was another dominant player in the sub-section.

Trends As per Euromonitor, in 2014 the value sale of confectionery was estimated to reach Rs 51,458.8. Perfetti Van Melle (PVM) India continued to lead with a value share of 23 percent and continued to enjoy a wide portfolio of sugar confectionery brands such as Alpenliebe, Chlor-Mint, Mentos, Fruit-tella, and Cofitos. Of all, Alpenliebe was the most preferred by adults and children, and accounted for a significant value share.

ITC Ltd recorded the largest increase in

As the Indian confectionery market continues to evolve, strong trends have come to the fore, which are expected to drive and propel the growth potential of the confectionery market and the categories within it. One of the major trends in this sweet segment is sugar-free, healthy products, and manufacturers are launching innovative products in the segment. Consumers are so healthconscious today that they seek health and wellbeing in everything they consume, including confectionery. Now they are demanding sugar-free candies and chocolates.

Health consciousness has certainly

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Another visible trend of adult consumers is the demand for premium confectionery.

To tap this segment of consumers, manufacturers of premium chocolates, such as Sprüngli, expanded their brand presence in premium stores such as Brown Tree and other modern stores in urban areas.

Interestingly, gourmet chocolate manufacturers, including Japan's luxury chocolate maker Royce, also made a foray into India's premium chocolate segment in 2013. Buoyed by the potential in the Indian market, the company opened its own store in Bangalore and Mumbai, a n d , m o r e r e c e n t l y, i n D e l h i .

Sales of premium chocolates have been supported further with consumers preferring to gift premium chocolates on festive and celebratory occasions. For instance, during Raksha Bandhan, Ferrero Rocher introduced special gift packs at select modern and traditional retail stores. Over the years, festive packs of confectionery products have become quite popular among consumers with many shifting from mithai to chocolates and other confectionery gift hampers.

During the festive season, the confectionery segment generates about 50-70 percent sales revenue. Till 10 years ago, people believed in gifting traditional Indian sweets or mithais, but now, the younger generation especially believes in gifting chocolates and confectionery products due to their longer shelf life, easy to store and handle, and also because of healthy options available.

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

NEW TRENDS candies 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.

organized 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.

Various chocolate companies are already in the product development process and are giving consumers options ranging from low calorie, energy bars to vegetarian chocolates.

Parle relaunched its Kismi toffee as a

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.

Trials Confectionery falls under the impulse purchase segment, and generally does not witness any in-store promotions and offers. Confectionery items are stacked near store check-outs, luring customers, who while billing, tend to add some items to their shopping basket.

Since brands do not spend on promoting candies, toffees and chocolates, as it is not viable for them, this segment remains inactive and lacks attention in

Urban consumers now buy chocolates and confectionery for everyday consumption. Earlier, they would buy them mostly during festivals. Also, more and more Indian consumers are replacing traditional sweets with chocolates.

Indians now prefer chocolates over 'chaat and tikki' in a substantial change in snack consumption pattern, according to a report by leading chocolate maker Mars along with research firm IMRB. The report mapping snacking consumption patterns among Indians was released in June.

"Over the years, change in consumers' preferences, eating habits and their global exposure has given a boost to the chocolate industry. 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 50something actor Rekha and now its Sonam.

India's chocolate market is estimated at around Rs 3,000 crore while the

romance inducer targeting young adults, which immediately doubled its sales.

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 too 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

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comparison to other categories. Of course, their display at the check-outs helps, but a lot of time they are overlooked when people don't want to scan the section near billing counters.

Also, not all the brands can get prominent display, so the ones kept at the back or on t h e l a s t s h e l f , l o s e v i s i b i l i t y. " Adding on to the challenges are the stringent FSSAI regulations on imported products, so brands are finding it difficult to enter the Indian market, while the existing ones are finding it difficult to sustain their business and even considering exiting the Indian market.

Confectionery manufacturers typically

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NEW TRENDS confectionery dealer universe. Three of Perfetti's flagship brands continue to be amongst the top five brands within the confectionery space, backed by strong distribution with well-loved advertising campaigns.

Prospects The confectionery market of India is divided into three segments: chocolate, sugar confectionery and gum market, which is further divided into subsegments. The Indian confectionery market is going through rapid changes in terms of trends and consumer behaviour pattern, and the industry is benefitting from higher consumer spending, which in turn is being driven by the new found mall culture and changing lifestyle.

make heavy investments in TV commercials, but are not very considerate towards retailer margins. Retailers actually help in building the brand and influencing consumer choice. If manufacturers would just use 50 percent of this expenditure for increasing the retailer margins, it would benefit them more.

Way to go The Indian confectionery market in comparison to other developed markets, is in the initial phase of growth, and will continue to evolve. It is expected to touch Rs 55,720.0 million in 2015 and Rs 60,188.6 million in 2016. It is believed that the sugar confectionery is likely to see a constant value CAGR of 8 percent over the next few years. The growth will be driven by the increasing consumption of sugar confectionery facilitated by the launch of new flavours by leading companies.

generate10 percent. But it is expected that as the market evolves, the revenue contribution from modern retail stores would rise. So being an important segment, it will continue to witness a lot of innovative launches.

P e r f e t t i Va n M e l l e I n d i a e n j o y s (approximately) a third of the confectionery market share. In spite of the low entry barrier, they have always provided consumers with unique and innovative products. Distribution of these products has always been our biggest

It would take 2-3 years for this segment to gain better prominence and visibility.

According to industry experts, consumers will largely continue to buy confectionery from kirana stores.

Nevertheless, with the growth of supermarkets and hypermarkets in tier II cities, sales of sugar confectionery through modern retail would increase.

General retail stores contribute 60 percent revenue and modern formats

strength with a brand like Center Fresh being available in every third outlet in the

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The per capita consumption should continue to increase for the category on the back of relevant innovations. Going forward might bring a shift within the category, with higher price points becoming more prevalent within the segment.

The entry of multinational companies in the Indian confectionery space has not only increased competition, but also the per-capita consumption, by launching new products at affordable prices, and creating awareness among buyers through advertisements and promotional campaigns. The emerging trend of gifting confectionery products is also driving the category, and there is great potential for further growth in the untappe d rural market.

Backed by these factors, t h e Indian confecti onery market i s expecte d to grow at

a CAGR of more than 18 percent during 2012-2015.

HALAL FOOD

t

he word Halal originally comes from the Arabic language and is used for every lawful object and action in the view of Islamic laws. In its literally broad meaning, it applies to all spheres of life activities including food, cloth, ďŹ nance, personal care, etc. But in common terminology, its meanings are narrowed down for food and meat products. he word Halal originally comes from the Arabic language and is used for every lawful object and action in the view of Islamic laws. In its literally broad meaning, it applies to all spheres of life activities including food, cloth, ďŹ nance, personal care, etc. But in common terminology, its meanings are narrowed down for food and meat products.

they see as religious obligations has Products that are free from pork and expanded the demand for Halal items. alcohol, and meat products made Indian Muslims have 15 per cent share in according to Muslim law are called Halal. the consumer market, going India is home to more than by their population. But 175 million Muslims and keeping the constraints of has the third-largest their economic conditions, community of Muslim it is assumed that Muslim consumers in the world consumers have only 10 per after Indonesia and cent share of the overall Pakistan. But its market in private consumption regard to the choices of expenditure of India. Based Halal-endorsed products on the share of Muslims, the among mainstream estimated consumption is brands is still highly shown in the accompanying untapped The majority of table.

Muslims prefer to buy only Halal-certiďŹ ed Rrazi-Ahmed Beside the domestic market, p r o d u c t s . F u r t h e r, a n India is a major hub for export of meat increased awareness in recent years and processed products to Muslim among Muslim consumers about what

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HALAL FOOD format. The halal technical team validates the information, if required further information sought. Once the paper is cleared, audit is planned on mutually agreed date. In Plant Audit is done by Auditors in the prescribed halal format.

Based on findings and Reports --- Halal Certificate is issued. If any ambiguity in status of product – Religious opinion from experts are taken & recorded for future reference.

countries. Malaysia, Egypt, Saudi Arabia, Kuwait, UAE, Jordan and Oman are among the top ten importers of Indian meat while the UAE was a major destination for processed food from India.

India is the leader in the subcontinent pack. It is the major producing and exporting country of bovine meat in the world and the industry has shown annual growth of more than 10 percent since 1990.

Most of Developed and Developing countries (irrespective of Islamic or not) has made it mandatory to declare Halal Status of Importing Stuff (Halal or NonHalal). In this situation once the Product is declared NonHalal, large section of consumer gets sceptical (as something wrong). As such Halal is basic need for Muslims but nothing against any prevailing religion.

Halal Food can be consumed by nonMuslims with better comfort than a food which is declared non-halal.

For a Muslim or Muslim country it is must and a product without Halal Certification by competent Certifying body cannot enter in the country.

Halal-tagged products Halal certification would attract Muslim Halal Certification for consumers in overseas Industrial Houses is a markets especially the R a z i A h m e d , D i r e c t o r, H a l a l Certification somewhat Middle East and Arab Committee, Jamiat Ulema similar to other Industrial regions, which are major Maharashtra, Mumbai, India, told Oil Certification as GMP, trade partners with India. & Food Journal that, “I am associated HACCP and ISO, but basic Despite all this, there are no with Halal Certification since 2001, the Mr. Babu Sebastian difference between Halal & serious investors and promoters time when Professionalism was need of other certification is that Halal Covers all for Halal-endorsed products in India. Al the time and I was instrumental to get aspects of safeguards. For Kabeer, Allanasons, Al-hind and Venkeys recognition to Indian Halal example, it includes Purity, are major players in Halal meat Certification (JUM) as Hygiene, fit for processing in India with a variety of authentic and accepted consumption & fit for products undertheir respective brands. worldwide, before that H e a l t h Now, Intertek, a global leader in quality Indian Halal Certification (Physical&Spiritual). In and safety solutions serving a wide range was not accepted short it ensures Halalness of industries, is extending its food worldwide”. from “Farm to Fork”. In certification expertise to include Halal broader sense Halal products.

He further added that, Certification includes in it India was always below to all existing Industrial Despite its significant Muslim USA, Australia, Brazil, Certification in practice. population, the Indian subcontinent is not and New Zealand in Meat yet a global leader when it comes to the Export but due to our The Procedure is simple--production and export of halal products. acceptance India 'has The Industrial House has to But this may change as nations in the become number one in Dr. Ankit Arya get registered with halal region attempt to improve standards in World in Meat Export in 2013committee and submit Industry and their food-processing procedures.

14 and the trend is expected to continue in products information in the prescribed

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HALAL FOOD 2014-15. Other than Meat, all other sectors of Food, Medicine, Cosmetics export is growing and Authentic Halal Credential is one major contributor.

Jamiat Ulema (Maharashtra Unit) is oldest Halal certifying body in India since 1982. It took a new but turn around came from 2001 when Indian export started taking shape. Razi stated that they have upgraded their working based on International parameters & guidelines.

Jamiat Ulema – Maharashtra is only Halal Certification body in India having worldwide recognition and acceptability.

Recently few more bodies have taken shape but yet to come to the level of expectation

type of certificate.

In fact, Jhaveri elaborates, that even customers fromnon-Muslim countries “Halal certification helped us Importance of halal certification also ask for Halal Certification. tremendously in our business.

Janit D. Shah (Director), All our exporters seeks the Ahmedabad, Saujanya halal certification of our Dyestuffs, thinks that Many of the companies are aware of the company and its gives halal certification is very halal certificate and are taking viable step value addition to our important to generate to certify their products as Halal, product'', said Babu quality faith on the informed Mr D.D Patel, Director, Sebastian Manager, Plant products, and this in recent Amishi Dugs & Chemicals Pvt.Ltd., Lipids (P) Ltd, Cochin times has helped in Ahmadabad. “The need for Halal (Kerala), and further added enhancing the business certification in agro and processed food that now the customer are both in India and globally. products is growing globally and we are more aware of the diversity The halal market is trying to cater our customer with this of their consumer and now developing step by step in requirement”. requires halal certification India as it is one of the for all the products. This largest producers of agro Bhavesh Shah of Victory Chemicals, will create great opportunity products has a great Dilip Soni Gujarat said '' Halal Certification has for exports, especially in the Muslim opportunity for exports, especially in the helped my business a lot and enhanced world, GCC and South East Asia.

Muslim world (GCC and South the boundary of my work''.

EastAsia), he added.

Halal market in India According toDr. Ankit Arya (Director), The large population of Muslims S w a d e s h i Ay u r v e d e , H a r i d w a r Dilip Soni, Director, Shree Ram Gum adhering to halal requirements has (Uttarakhand), getting a halal & Chemicals, Jodhpur said, “With fuelled increased global certification will put up increasing cross border trade from and to demand for halal products. marketing advantages, the Muslim world, increasing number of Several multinationals, help to increase customers companies, seeking to service the such as Tesco, McDonalds confidence, significant segment, are looking for a Halal and Nestlé, have improvement in quality Certification for their end product. As recognized this, and have and increase transparency required, the ingredients also need to be expanded their halal & accountability.

Halal Certified. Our product being an approved product lines. ingredient has also found acceptance Because of the traditional among our existing users''.

Parag Jhaveri,M.D, nature of the marker, it is Yasho Industries Pvt. estimated that these While Sumeet Agrawal of Ltd., Mumbai, says, multinationals control 90% D.Manoharlal Shellac Private ''since we are of the global halal market.

Limited, Kolkataelucidated that halal manufacturing food certification helped his business in a great antioxidants many of our Devarsh Patel Muslim population in India is way as Halal Certificate is very important customers insists on Halal projected to increase to 236.2 million in certificate which helps to sell products Certification and the demand for Halal 2030. By this time, it is expected that freely in all over the world not only to certification in agro & processed food more than one in ten of the world's Muslim countries but to U.S.A. and south products is increasing mostly in Middle Muslims will live in India.

Africa, where customers demand this east countries & South East Asia.

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HALAL FOOD Muslims across India have an understanding about what is halal in general, and in meat products in particular, as whenever they go to any restaurant, hotels, butcher shops, they will ask for halal.

Experts believe that due to confidence in the standard of halal compliance in India, the country is becoming a favorite source of halal meat for Islamic countries.

certified products to increase the marketing perspective by meeting the needs of the consumers towards halal food”, he added.

Dilip Soni tells us that many countries now seek an overall registration with the Halal Committee unlike the Muslim countries that seek consignment wise certification.

Speaking on the same line,MrSebastian elucidated that, in today's time even non-Muslim countries, have Muslim in those countries, and since it is a potential market, all countries without exception do demand halal certificate.

JAINIT SHAH

According to Mr. Ahmed, For a Muslim or Muslim country it is must and a product without Halal Certification by competent Certifying body cannot enter in the country. In fact Non- Muslim country like Europe, USA, UK, Australia, and New Zealand and so on has made it mandatory to declare Halal status of the Importing Product.

Demand for Indian meat is also expanding in overseas markets. There is especially increasing demand for buffalo meat in Gulf and Asian countries, due to its organic nature. “With the increase in halal consumers across the globe, the demand for halal food is increasing exponentially,” states Mr. Patel. “Due to this, retail chains are bringing more halal-

popularity of the halal market in Europe is driven by Russia, France and the United Kingdom.

Mr. Jhaveri also endorses the fact that halal certification is becoming mandatory with time as apart from middle east and GCC, American and European countries now demand for halal certification too.

“Make in India” and halal world “Halal is a global brand name in the world, it has a turnover of 2.3 trillion US dollars in global market. Halal is not for Muslims only, it is for entire mankind, halal means wholesome and hygienic food which is good for health,” said Razi Ahmed and Halal certification is enabling manufacturers and exporters to get greater share of the global market.

Awareness about halal certification has seen many certification firms “For the development of and organizations coming market networking, a halal up. These include the certificate is now becoming Halal International n e c e s s a r y ; D r. A n k i t Council, International Aryastressed and further Halal Integrity Alliance, added that there is also Halal International strong potential for halal A u t h o r i t y, H a l a l certified products in nonCertification Authority Sumeet Agrawal majority Muslim markets, International, although many like the where consumers are looking for safe and Islamic Food and Nutrition Council of ethical products. The increasing America (IFANCA) has existed for more than three decades.

The SAARC countries have set up a SAARC Halal Council, and Over 350 companies in India are certified and among them are Carrefour, the French retail giant, Nirma House, Haldiram Namkeens and Sweets, Goldwinner oil, Fortune Oil, Bacfo Pharmaceuticals, Ambuja Group, Daawat Basmati Rice, Vadilal Icecreams, Fortune Oil, Amrutanjan Balm.

Since the Indian government has started the “Make In India''campaign to promote business in India, the halal market is fast becoming the part of this movement in relation to the agri and food processing industry.

Data from the Agricultural and Processed Food Products Export Development Authority, part of the

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HALAL FOOD Ministry of Commerce and Industry in India, indicate that exports of buffalo meat were valued at $3.2 billion in 201314, making India one of the top buffalo meat exporters in the world.

In India, a predominantly Hindu nation, slaughtering cows for meat is unacceptable to many, but buffalo meat is allowed, and is processed according to halal rules. Indian buffalo meat is also one of the largest agricultural exports by value in the country.

will help in highlighting our nation in the global market, said Parag Jhaveri. It is a lucrative market and huge opportunities for halal food business - domestic and international trade. Many companies are looking at halal concept as a new tool for marketing. Some facts of market trend in abroad in the past few years did showed that the development of global Halal food market is up-rising, he added.

Janit D. Shah, says that the global Halal market is said to be worth USD2 trillion.

As such, research into making this market 'better, Processed food that is being faster, cheaper' cannot be exported to the GCC and ignored. We In India is fast middle east all pass the adopting this and very halal certification. The soon the food and beverage government has invited industry of India will international companies to Parag Jhaveri largely come under it and invest in India from the alongside the make In India course which Western, Asia pacific and Middle East. cover it.The Asia Pacific region has been Many international food companies do quick in understanding this point and business in India and this campaign is going all over halal. accelerating the business deals.

The other important issue is most of the agro and food processing doing business with these countries have to fulfill the halal certification requirement and ''Make in India” needs to be the part of the halal world.

As an ingredient manufacturer, we welcome the Govt. of India initiative to promote growth of Industry through “Make in India”, said Dilip Soni. It will definitely help in the growth of ancillary industries, leading to employment and also increase the investment in India.

Being a leading producer of agro products definitely gives India an advantage to serve as a hub for food processing industry.

It is also very strategically located to serve the Far and Middle East, he added up.

Government of India is promoting “Make in India” concept for the global manufacturers, agro & processed food products have a great potential for success of such efforts and halal certification can enhance the export potentiality, Bhavesh Shah,stressed.

Halal certification is considered to be the prerequisite for entering the global halal

Promoting “MADE IN INDIA” concept can be beneficial. It

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market, helping companies meet local requirements, expand their marketplace and increase their sales and revenue, thus make in India movement which is important for global growth of the India industries has to submit to this accreditation , illuminated Mr.Sumeet Agrawal Undoubtedly, The vision ''make in India'' is a great potential for success of business, because it is the symbol of Indian business to establish themselves in the global market by giving their well service to the customers and consumers, said Dr. Ankit Arya.

Babu Sebastian says that, nearly all the world hasMuslim population, thus all countries without exception do demand halal certificate. Hefurther added that “Make in India” concept for the global manufacturers is gaining a big ground and agro and processed food products have a great potential for success of such efforts as we are the bestin many food and beverage manufacturing, say it dairy, meat or agri processing. So I want to voice the fact that any Conclusion The global industry for halal food and lifestyle products - ones that meet Islamic law standards of manufacture - is estimated to be worth hundreds of billions of dollars and is multiplying as Muslim populations grow. Producers outside the Muslim world, from Brazil to

121, 1st Floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist Thane - 401 107, Maharashtra.

Ph. : +91-22-28115068, 28555069, 8689979988 Email : info@agronfoodprocessing.com www.agronfoodprocessing.com

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HALAL FOOD the U.S. and Australia, are eager to tap into the market.

The world's Muslim population is estimated at around 1.6 billion, and the majority is believed to adhere to or prefer

permissible and what is not. Despite attempts by international Islamic bodies, such as the World Halal Food Council, to achieve worldwide guidelines, there are no global standards for halal certifications.

market and data analysis, says halal food already accounts for about a fifth of world food trade, and the Muslim market is growing substantially. According to a Global Futures and Foresights Study, 70 percent of the world's population increase from 7 billion today to 9 billion people by 2050 will be born in Muslim countries.

Already in Muslim-majority countries, outlets like McDonald's, Subway, Pizza Hut and Papa John's pizza serve halal to their customers.

to adhere to halal products when possible.

The general understanding is that halal products should not be contaminated with pork or alcohol and that livestock is slaughtered in accordance with Islamic Shariah law. Similar to kosher practices, Islam requires the animal is killed with single slash to the throat while alive. It is intended as a way for animals to die swiftly and minimize their pain.

However, as with most issues in religion, opinions vary greatly over what is

Stricter interpreters of Shariah say chicken must be slaughtered by hand to be considered halal. Others say it is acceptable if the chicken is slaughtered by machine, as is the case in much of the fast-paced food industry around the world. To accommodate various Muslim consumers, several companies even specify on their packaging how the chicken was slaughtered.

Datamonitor, a company that provides

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Even in markets where Muslims are not the majority, there are billions of dollars to be made in the halal industry.

The Islamic Food and Nutrition Council of America, a not-for-profit halal certification organization, said the domestic U.S. halal market is estimated at $20 billion.

Food business is big business and producers are increasingly aware of the need for halal standards and certification and bringing that to the fore of their export promotions.

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EXTRA EFFORTS

1. Introduction

F

ood is the paramount necessity of people, safety is the priority of food. Even though a wide crosssection of society has been calling for strengthening the construction of food safety, especially after the appearance of the melamine incident, the supervision department to food safety makes a great effort to rectify the food business of production and sales, the food safety incidents still remain frequent and numerous like the wave and even some reporters openly declared that China has entered a mutual poisoning era. Under the economic factors and no belief, everything is going to be used for the commercial interests. We are surrounded by various hormone, pesti cide and chemical products, such as Sudan red, poisonous rice, illegal cooking oil, Sanlu milk powder, plastic vermicelli and so on.

It becomes a necessary for the mutual poisoning incident in the circumstances that we are seeking to maximize our

interests in today in the absence of faith and lack of supervision. There is no doubt that facts discussed above are again and again proved the existence of government failure in the field of food safety supervision, so the new management way is not a moment to be lost to actively mobilize the social forces and explore the multiple management. NGO as the outstanding representative of the third party's power should become an important key to solve this tough problem-food safety. The food NGO is as an emerging force in the field of food safety supervision. Although there is nothing comparable to this superiority in structural design, it ultimately can not escape the destiny that new born things will face numerous unfortunate situations at its birth. Especially, when the development for civil society in China is imperfect and the construction of democracy and the legal system is unsound, the situation of food NGO's role is still not optimistic.

The first problem is small number for it.

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Although the NGO in China have been established for a short time, who basically started from the time of the reform and opening up, it has developed rapidly.

According to the Statistical Report for Civil Affairs Development in 2008, there were 414,000 national organizations and 230,000 national groups in China by 2008. But the national organizations specialized in the food safety were still rare.

The association of food industry was established early in China. The most influential and largest association must be China Food Industry Association, which is currently the unique, national and selfregulatory industry management organization for food industry sector. And it has done a lot of fruitful work for promoting the sustained, steady and coordinated development to our food industry. However, it is restricted not only in taking their actions, but also in collecting the social resource with strong administrative color. Even though the regional industry associations such as

EXTRA EFFORTS food industry association in Xiamen and Shenzhen and so on have mushroomed, their influence is relatively small. Some national or even international NGO is also involved in the food-related activities, yet these activities are only sharing a small proportion of all the activities.

The second problem is the weak action force. It is embodied in the following three aspects for the weak power of food NGO. The first is narrow space for its activities (Su, 2012). The Food Safety Law of PROC we are looking, hereinafter referred to the Food Safety Law, was finally implemented in June 2009, which provides a series of procedures and measures for all aspects of food safety regulation as a specialized law for guaranteeing the food safety. But it is regrettable that the law can't give enough space to NGO that participates in food safety management under multiple perspectives. We can talk about this situation in the following two aspects.

One is banning NGO from recommending food to consumers. The article 54th of Food Safety Law stipulates that the supervision and administration department for food safety or all agencies that assume responsibility for food inspection, the associations for food industry and consumer associations may not recommend the food to consumers by advertising or other forms. The associations for food industry and consumer are as the important representative to the food NGO. And their major job is to consider how to maximize the protection the legal rights and interests of consumers during the food consumption and to provide consumers with the right and reasonable suggestions. It is not only coinciding with their service aim but also a relatively straightforward and efficient service form. Besides, people will need the guidance of NGO when they are facing the different kinds of food. So it helps the government enormously with the advice and assistance by the food NGO to regulate the food safety. The other one is lacking the provision of public interest litigation system, which refers to the system that any citizen, artificial person or other social organizations all can bring an accusation to the People's court and ask the offenders to suffer the legal liability according to the law when anyone confronted with the action that

violates laws, regulations and social public interests.

It is apparently of great significance for this system to punish the illegal acts and torts in the industry of food, but it is not mentioned about it in the Food Safety Law. The second is the severe shortage of professionals (Liu & Wang, 2011). People are both the carrier of all actions and an important key to control operational efficiency. It is also subject to the shortage of people for the food NGO to difficultly develop, which does not mean the small number of volunteers but refers to professional reasons―it is hard to find an expert with professional background in food. On the contrary, many graduates with food major have nowhere to employment.

Because the current demand for food professionals is basically saturated in stateowned and foreign-invested enterprises and even though people with work experience is preferred if there is demand. They show their extreme distrust and disagreement to the development platform provided by the food NGO, it is finally the only way for them to get the other jobs or fall into the mire of unemployment. The third is that there is too little money to spend on it.

Although the adequate fund is an important guarantee for NGO in the field of food safety to make breakthroughs, it is often in the straitened circumstances for its real life. Apart from the food NGO, some well-known NGOS such as welfare center for children, rescue station, the Red Cross Society and so on are also in shortage of funds. It is a major cause of the tragedy for the single channel to finance. According to the analysis of the NGO Institute in Tsinghua University, there are 53 percent of government subsidies, 31 percent of membership fees and revenues, 10 percent of individual and corporate donations, 2 percent of foreign donations and 4 percent of other income in the capital resources of NGO in our country. Because the system of social security is not perfect, there are the tradition for people who are more willing to keep assets for their future generations and the public distrust for the funds operation of NGO, the private and corporate donations do not play an important role in the NGO's funding resources.

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The third problem is that it has a narrow and single channel to participate. The food NGO does not form its own voice in the society as insufficient support. About the number of NGO, there is not much difference between China and Western countries, yet Chinese NGO does not keep the same status as Western countries' in the field of social administration. There are two reasons.

The first is that the official is relatively unwilling to let NGO participate in public management, because the ways of NGO taking part in the public affairs are mainly organizing the protest of media and the public to put pressure on the government decision, which fundamentally is an indirect participation that does not include public affairs. The second is that the interactive channels between NGO and the public are traditional and single.

The ways for NGO to interact with the public are mainly publications, lectures, announcements and other traditional methods, which not only are inefficient and unable to adapt to the ever changing social situation, but also can not meet the ever growing desire of people for service.

Besides, many means of communication are one-way and can neither mobilize the enthusiasm of people nor fully unite the strength of all participation, which leads to little progress in alleviating the information dissymmetry in the food market.

2. Government Failure in the Food Safety and the Supplemental Role of NGO Government failure, which is another important economic theory after the market failure, mainly refers to government's activity are not always as valid as it should be or as it could be in theory, that is to say, it can not always be possible for the government's intervention to achieve the pre-set targets and there are many situations that it is

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EXTRA EFFORTS ineffective for the government intervention in the real life or it runs counter to the wishes (Liu & Wang, 2011). In the field of the supervision of food safety, government failure appears the following main features. 1) Driven by the short-term economic interests or affected by the incorrect view of achievements, the local governments have to make an alliance of interests with the unscrupulous companies, and it will cause the severe damage to the independence of government. When the incidents of food safety happened, the government stands the opposite to customers to voluntarily help the unscrupulous companies overcome the

crisis instead of actively representing the interests of customers. Naturally, it has been threatened for the public trust that government accumulated for a long time (Ou, 2010). 2) Restrained by aspects such as bureaucratic thought, hierarchical structure, staff quota restrictions and so on, it seems also slightly insufficient for the government's profession in the field of food safety supervision. For example, the official experts can not meet the growing and diverse needs of reality no matter in quality or in quantity (Su, 2012). 3) As lack of the effective means to break the Parkinson's Law (another name for bureaucracy or bureaucratic phenomenon) and the high institutional cost of administrative act，the efficiency problem of government regulation in the food safety are also widely criticized by people. Many reforms have been made by government, but they failed to get rid of the problems discussed above. The food NGO depending on its unique attributes can effectively play a complementary

role in some aspects that government's supervision is less effective, under the background of small government and big society, it has been a trend that public administration takes instead of administrative management.

2.1. The Independence Supplementary to Food NGO The government has granted more and more rights such as the quality testing, the certification authority and so on to the third party―NGO organizations this year, whose independence will provide powerful guarantee for a fair, impartial and reliable test process and result. In other words, its independence is an important key to ensure that NGO will successfully enter in the field of food safety. First of all, the food NGO is not to gain profit as the goal, which greatly ensures its firmness facing with the economic interests' temptation.

Secondly, its distribution area is wider if the NGO is more well-known NGO which can be distributed in the national areas or even multinational areas and the NGO's members are not limited to a single specific class. The diversity and complexity of its members, on the one hand, determine the food NGO is both uneasy to be bribed by unscrupulous businessmen and unlikely to be controlled by local government, so it is the real spokesman for public interests. It is more important that the food NGO can rapidly take part in as the independent third party to make comprehensive and objective investigation for the truth of the complex events and then timely return the available information to the public and the authorities through the appropriate channels after the outbreak of food safety incidents. All in all, the food NGO is making its contributions in the process of restoring the truth and bringing the illegal behaviors on food to justice. On the other hand, the diversity and complexity of NGO's members also can provide certain strength for food NGO in competing with unscrupulous businesses, its advantage is more obvious especially when the

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members hold the rich social resources or own the remarkable ability to mobilize the public.

2.2. The Specialization Supplementary to Food NGO It is another advantage for specialization that food NGO has to fight against the illegal acts of unscrupulous businesses. In order to ensure the clarity and effectiveness of its acts, most NGOS have openly set their purpose and goals before establishing it, on which they can depend to selectively recruit and absorb members and then establish a distinctive and professional team. Just as the consumers' association is aimed at protecting the consumers' interests, the Red Cross is aimed at providing medical aids and the Friends of Nature is aimed at protecting the ecological environment, the food NGO also has set its goal to ensure the food safety from its birth. It has always been diverse to the things' development, the association of food industry which owns the unique advantages make itself superior in forging specialization. Taking the association of food industry in the United States as example, its purpose is to realize the safety and orderliness of the whole process for food from farm to m dinning table through its autonomy. As it is inspired by this purpose and to maintain the reputation of food industry they are working for, a lot of elites in the food industry choose the associations of food industry that account for a large proportion of food NGO. There are three main advantages for the associations of food industry, one is that they are able to stand out as they have experienced a longterm fierce competition of the market economy and they always keep a high degree of sensitivity and a strong sense of crisis in order to hold their professional status. Another is that these associations who mainly come from the front line of food design, research and development are well versed in the latest development of the entire food industry, so they are worthy of experts and and they can easily distinguish the fake food. The last is that they are more careful in supervising their counterparts than government in order to maintain the competitiveness of their products.

2.3. The Ef iciency Supplementary to Food NGO It is probably not the most efficient department engaged in food safety

EXTRA EFFORTS supervision for food NGO, but some of its inherent qualities make it more efficient than government departments. There are four main qualities for it. The first is concentration. This is not to indicate that government itself is not careful and dedicated during the process of food safety regulatory, but it is inevitably leading to less concentration as ambiguous functions and intricate rights and responsibilities of government departments. While the food NGO takes the protection of food safety as its unique goal, and it puts all its energy and all of resources it is able to acquire into realizing this goal. So its concentration becomes the prerequisite of ensuring the efficiency. The second is independence.

As we mentioned above that there are lack of external intervention for the activities of food NGO, it is not only saving much time and energy for the food NGO to engage in monitoring the food quality and investigating the fake food, but also making them bravely tell the truth without fear of power. The third is voluntary. Some scholars have clearly stated that Chinese NGO is a non-profit civil organization which is voluntarily made up of the Chinese citizens and carries out their activities according to its rules to realize the common aspiration for its members. This statement indicates that a considerable number of staffs in NGO are providing their services on basis of pursuing the satisfaction of spiritual life, this is both a more efficient and more lasting driving force compared to the material rewards, and explains why some the volunteers have more enthusiasm without any economic rewards than in the case of doing their payable jobs. The last is its nonprofit quality public welfare. The aim of NGO activities has always been increasing the public welfare, even if it sometimes charge a certain fee to its service object, its consideration of social benefits is more than economic benefits.

As this nonprofit thought naturally lets it own such widespread social mobility, more and more people devote their money and power to serve the public, and the operational efficiency is therewith growing exponentially.

3. Solutions To give full play to the supporting role of the food NGO in establishing the governance model for food safety that is based on mainly led by government regulation in our country, we must

successfully address the above challenges we have discussed. So we need to focus on the following points.

3.1. Further Optimizing the Legal and Institutional Environment of Food NGO As we all know, nothing can be accomplished without norms or standers.

Laws and institutions are not only a constraint, but under certain circumstances are a safeguard which can ensure both the continuous supply of peopleand money to the food NGO and guarantee that food NGO will play the active role to maintain t h e f o o d security in the legal and r e l a x i n g environment.

The legal regulation for NGO to enter into the field of food should appropriately be reduced. Firstly, it must be revised and perfected for the Regulations Governing the Registration of Social Organizations, which has been implemented for more than twenty years since October 1998.

Now the social conditions have already undergone the enormous changes, so some regulations at that time are now becoming a constraint. For example, the Article XIX of this regulation sets that NGO shall not establish regional branches and the paragraph 5 of Article XIII regulates that two NGOS can not be in the same field, which forms serious constraints for its development to enhance the social influence and strengthen the social mobilization forces.

There are also many similar provisions like these regulations, all of these rules should be made some revised with the development of society and time.

Secondly, we can learn from the proper experience of western countries. It would be granted the legal identity for participating in public activities as long as NGO was established to register under guaranteeing the freedom of association,

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if the register system instead of the system for examination and registration.

Besides, some measures can also be made like properly breaking the government monopoly to punish the illegal enterprises and so on to make more and more non-governmental organizations participate in the food safety supervision through legal permission.

The food NGO to take part in supervision should be endowed more legal authority.

Some NGOS are also making effort in food safety issues, yet its effect is not prominent, which is mainly caused by the shortage of rights in law. A lot of unscrupulous companies relying their wealth and fame always pay no attention to the criticism and denouncement of society. Therefore, it should not only allow more and more NGOS to come into the area of food safety in the law, but also grant them legal authority for participating in food safety supervision.

This doing will let the food businesses truly attach importance to food NGO. For example, the German Industry and Commerce has gotten high authority.

According to the law in Germany, the enterprises that have be registered by government authorities are the member of the German Industry and Commerce and they should be limited by this organization. They can not freely join it and have no their freedom to retire. If the member violates the provision, German Industry and Commerce will have right to punish it. The German Industry and Commerce will also forcibly deduct certain amount from its account if the member can not pay membership dues on time. The German Industry and Commerce will even deprive it of the

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EXTRA EFFORTS rights to get some standard certifications if the member completely disregards the regulations and breaks the rules. It will not only provide the necessary guarantee for its continuous development, but also the great supplement for the government regulation in the efficiency to correct its mistakes by more legal endowment for the food NGO. The new system should be established for the food NGO to finance and pool the human resources. Firstly, it will be promoted with the help of the system' force for the donation except hoping that more and more enterprises and individuals make self donation for the public welfare in financing. For example, the traditional practice that the rich leave their property to the next generation would gradually be changed if the system for inheritance tax is established.

As well as their wealth should be attracted to make a contribution to charity. Besides, the construction of financial control system should also be strengthened to make the funds operation further open and transparent. The food NGO should not only consciously accepted the official supervision such as thestate finance departments, auditing departments and so on, but also regularly address the funds' details of income and expenditure to the public and sincerely invite the donor representatives and the public representatives to participate in both the formulation and the implementation of its budget and final accounts to get the public's trust and support. Finally, the social contributions are also encouraged through the tax preference policy and so on. The personnel control system for the food NGO will be established from entering it to out of it in the human resources.

According to the voluntary and the professional feature of the food NGO, its members should be classified by full-time or part-time and professional or nonprofessional to separately manage. The management for the part-time staff should be appropriately relaxed. As long as they have highly their enthusiasms and responsible attitude for the food safety, they should be welcomed to take part in it and the relevant subsidies can even be given for them according to their contribution. The management for the full-time staff should be relatively

standardized and rigorous, which may include the examination system, the performance appraisal system, the incentive system, the reward system and so on. It is necessary to build the suitable material security system in order to attract more experts in the area of food, which can sweep the experts' worries and further let them put the whole heart in work. And it can be established to the system of personnel exchanging and mutual cooperation with universities and research institutions (Liu & Wang, 2011).

3.2. To Create the Diverse and Ef icient Participating Channels

It is only the first step for the construction of legal system to create a diverse and efficient participating platform.

It can fundamentally provide more chances and capabilities for bargaining for the food NGO and it is necessary to supervise food security by the cooperation of food NGO and all citizens.

Firstly, to build an equal and normalized communicating mechanism with government, which can timely feedback the public wishes and demands to government and expand the food NGO's influence while making the government's action suitable with the public intends (Liu, 2010). Secondly, the food NGO should create more network information platforms under the information era, and the special platform even can be set up for an influential food safety event. These will greatly improve the opaque situation for information in food industry and make the bad companies have nowhere to hide. The Green Peace organization has well exemplified for us that owns a project of pesticide residues for fruits and vegetables. Since 2009, it has annually invited the relevant personnel in the food

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safety industry to check regularly the sampling tests for two to three times to the fresh fruits and vegetables in supermarkets and the test report and the supermarket ranking list are made according to the result for sampling test each time. And these information will be issued the official website of Green Peace the consumers can read the information through it. All of these actions have both increased its social influence and improved its service efficiency. Lastly, to build a mesh participating network with the help of new media such as web, fetion and so on. Each consumer is a food safety warden who can participate in the activities of food safety supervision. As long as the illegal actions related to food safety were found in the daily consumption, they could take advantage of these communication media to send their information to the food NGO. And the testing procedures for the food NGO will be quickly started to faster and more efficiently enter the battle for defending food safety. Certainly, the realization of this idea also needs the further improvement and supporting of communication system. Although we have been taking action in our country for the food supervision and some achievements have also been made, there is no doubt that facts discussed above are again and again proved the existence of government failure in the field of food safety supervision, so the new management way is not a moment to be lost to actively mobilize the social forces and explore the multiple management. In short, the food safety is the cornerstone of social development and is an important manifestation of social sustainable development. Facing the food safety supervision, if we really properly solve this problem, on the one hand it is extremely urgent, on the other hand we have a long way to go. NGO as the outstanding representative of the third party's power should become an important key to solve this tough problem—food safety. Therefore, the food NGOmight be worth a great deal; it is essential for the system construction especially the construction of relevant Law apart from continuous development and ceaseless accumulation.

FMCG

EMERGING CHALLENGES & PROSPECTS OF FMCG PRODUCT DEVELOPMENT IN INDIA INTRODUCTION

E

major portion of the supply) or a monopolistic situation (a buyer having power on majority of the demands). In case of these distortions, the government or business bodies make an entry to ensure that the free markets operate smoothly.

merging markets like India are different from developed markets.

These markets are often characterised by specific local needs, limited purchasing power and high price sensitivity. (Prahalad and Lieberthal, 1998). Khanna and Palepu (1997) have suggested that in emerging economies, to make up for the absence of welldeveloped markets for labour and capital, firms may have to create their own infrastructure. Specifically, unlike established companies in developed markets, Indian companies are facing the challenge of structuring the new product development processes in an environment of limited design skills and experience. Few qualified vendors and inappropriate engineering resources. At the same time, they are constrained by limited financial and human resources, a lack of a market orientation, strong centralised control by business family heads, functional chimneys without deep functional expertise, and pressures to change on numerous fronts all at once to cope with the competitive environment (FMCG).

Stock Markets - Stock markets seem to be the backbone of any economy - and of late they have become the most complex structure allowing investors the scope of buying and selling shares in multitude companies. Majority of the Indian stock markets are operating on an electronic network, with a physical location being maintained for buyers separately. This is the place where the parties involved can interact with each other directly.

Formation of FMCG products in Indian Market Free Markets Currency Markets Stock Markets Free Markets - free markets are operational under the 'laissez-faire' conditions - where there is no government intervention. A free market may get distorted if there exists a monopolistic situation (seller controlling

Types of Consumers in Indian Market Indian Markets originated from the center of villages and towns, where there was a sale or barter of farm produce, FMCG product and other products. Later on these street markets went on to become consumer-oriented markets like the specialist markets, shopping centers, supermarkets.

Currency Markets - Currency markets are among the largest traded markets in the globe, on a continual basis. Money flows are continuous around the globe governments, banks, investors and consumers - all of them are involved in buying and selling currency round the clock. That is the velocity of money is huge with so many constantly changing hands.

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Commodity Markets - In India, with high oil and food prices, the commodity markets have again gathered all the attention. The prices of the essential commodities steer the economy to a desired level.

Capital Goods & Industrial Markets Indian capital goods markets help businesses to buy durable goods that can be used in industrial and manufacturing methods. There are usually wholesale trades that take place with bulk goods being transacted at very cheap prices.

Importance of Indian markets Markets in India after the liberalization era have been leveraged to the extent that they are well protected by legal procedures and boasts of efficient administrators. The government has always been proactive in its strategies to make the future of Indian market lucrative and attractive. Indian market has witnessed outstanding growth over past few years. The liberal and transparent financial policies have steered the economy towards free flow of FMCG products and Indian Market has achieved a sound place in the international arena. The returns on investments in the India market have been substantially moderate from the entire FMCG product. Public Private Partnership (PPP) is the new trend in the Indian marketplace, with red tape and bribes being shed off to quite an extent.

FMCG Sector in India Fast Moving Consumer Goods (FMCG)

FMCG can be defined as packed goods that are consumed or sold at regular and small intervals. The prices of the FMCG are relatively less and profits earned through such sales are more volume based. The organized FMCG retailing in India is a new concept and is fast catching up in urban and semi-urban India.

The FMCG Sector in India has witnessed a range of recent developments. Tax deductions on various items, rise in the penetration levels and per capita consumption are some of the major developments in FMCG. The FMCG Sector in India is the fourth largest sector in the Indian economy. As per the reports of the 2005-06 financial years, the market size of the sector was registered as USD 13.1 billion. The FMCG Sector in India involves a strict competition between the organized and unorganized sectors of consumer durables. India offers an abundance of raw materials (Some product categories such as jams, toothpaste, skin care products, hair care products, etc have experienced a low per capital consumption as per a report presented in 2006.), low-priced labor costs, and also has a presence across the entire value chain.

Approximately 200 million people are expected to become the consumers of processed and packaged foods by the year 2010.The major activities of the foodprocessing sector are permitted 100% foreign equity or 100% NRI and Overseas Corporate Bodies (OCB) investment to meet the rising demand of the consumers. In the year 2012 (Table.1), the recent developments in FMCG, it is assumed that the consumption of the FMCG products will have a satisfactorily growth with the rising income level of Indian populace in both the rural and urban areas. The market size of the Indian FMCG Sector is expected to reach USD 33.4 billion by the year 2015. The Indian government has declared several tax sops for the FMCG sector in India. It has emphasized on the infrastructural developments in the same.

The consumption of health and personal care products in FMCG sector has increased in the recent past with rise in disposable income especially among the early stages group in India. A few of the FMCG product are:  Toiletries  Soaps and detergents

   

Cleaning and disinfecting agents Cosmetics Non-durables Pharmaceuticals

Further, the packaged food products and drinks are also sold under the FMCG, since these items are consumed or bought at regular intervals. Furthermore, recently the electronic items like mobile phones, MP3 players, external hard drives, etc, which has less life owing to its technological development, has also been brought under the gamut of FMCG sector.

F M C G Consumer Goods in Asia (Table.2) Asia's rising a ffl u e n c e w i l l drive the growth for FMCG firms over the next several years. In 2011 (Table.2 ), aggregate demand for consumer goods in Asia has remained strong, and demand for soaps and cleansers is forecast to have grown more strongly than previously expected in India, Hong Kong and China, at 11.1%,8.6% and 12% respectively, against earlier forecasts of 9%,5% and 10.1%. India's rapidly-growing middle class, with annual household incomes of US$3,000-5,000 is becoming increasingly brand-conscious and aware of the importance of personal grooming.

The market for cosmetics, toiletries and other personal care items is concentrated, with a few well-known brands dominating sales of shampoos, hair conditioners, make-up, fragrances and personal hygiene products. Growth in demand for most of these products is expected to be rapid in 2011-15, leaving scope for new companies to make inroads into the current market leader's dominance men's grooming products, and such as skin lightening creams, deodorants, facials cleansers and so on is an area that is showing steady growth.

2012 Out Look for the Retail and Consumer Product Sector in Asia India often throws up surprising sales

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strategy successes. For example Amway, an American direct sales retailer, has become one of India's largest consumer goods companies since the government allowed it to start selling its products door-to-door, However, the markets will get tougher as consumer tastes evolve rapidly based on rising incomes, more companies enter the fray and established market leader step up their game, for example Nestle has been in India for almost a century. Now it is moving to keep pace with the market. Five years (Table.3) ago it under took” Project Epicure” under which it made 1,500

visits to Indian homes, rich and poor, to see how people cook and eat. On 30 July 2011, it reported a 20 % increase in total sales to Rs 17.63 billion (US$ $394million) and a 9 % rise in its net profit for the second Quarter to Rs 2.14 billion (US$ 47.8 - million). It is planning to invest US$ 450- million to double its capacity. Emerging as future growth markets based on the rise of the young, urban, increasingly affluent Indian consumer.

It is developing products suited for the Indian market and even express product development in India to both Asian and Eastern European countries. The real anticipates that almost 70 % of its launches in India in 2011-12 will be if products that are locally developed, including skincare product for men.

Consumer Class in FMCG Sector in India Consumers play a crucial role in the Indian FMCG sector as the price band of each FMCG product is fixed depending largely on the consumer class which the particular company is targeting. A number of variants are offered by each

FMCG brand in the FMCG sector. For example, the personal care, home care, bakery products, dairy products, processed foods are more consumed by the urban classes whereas the personal care items and fabric care are consumed more by the rural population. Some of the FMCG companies like Nestle India, Cadbury, Procter & Gamble (P&G) and Smith Kline Beecham offer high-priced branded products as these companies target the elite and upper middle class consumers. These high-priced branded products do not have high sales in the rural regions as much as it does in the urban section of India. Processed food manufacturers gain more profit in the urban areas as the urban population has a higher preference for ready-to-eat meals.

The consumption of personal care items is high in the rural regions. High literacy rates and an increase in the per capita income of the inhabitants led to a rise in the consumption of the FMCG products in the country.

Indian Market Conditions of FMCG

product GDP The Gross Domestic Product popularly known as GDP of an economy requires contribution from major industries to be healthy. India is largely an agrarian economy; so agriculture makes the major contribution to the GDP. Role of major industries in India GDP is important as based on this only the total GDP is calculated. In terms of US Dollar exchange rate India's economy is the twelfth largest. Despite witnessing a slowdown, due to the global recession, India's economy has huge potential of expansion.

T h e C h a l l e n g e - N e w P ro d u c t Development (FMCG) In this age of accelerating commoditisation, companies are increasingly gambling on the success of innovative /new products, yet companies

continue to release new products the same way they always have.

As far as the economic scenario is concerned India is surely on a roll. The last twenty years have really proved extremely beneficial for India. The country now stands only after Brazil as far as GDP ranking is concerned. India has replaced Russia and grabbed the second position in the global forefront mostly due to the strategic planning and huge amount of expenditures on education in India. India is expected to cross the 8 percent mark and move to 9 percent GDP growth rate. India is the second largest populated country in the world sheltering over one billion people. Although India has not had a striking 10 percent year over year economic growth as its neighbor China it has still managed to grow at a nominal rate. India's GDP growth has been slow but careful. According to trade pundits India will take the third position as far as GDP growth in concerned by 2020

replacing Germany, the UK, and Japan.

Only United States and China will be ahead of it. All the important sectors in India have shown positive signs of growth from the last five years. Let us have a close look at the sector wise growth rate in India from the period 2010 to 2011. Indian exports increased by 26.8 per cent (y-o-y) and touched US$ 18.9 billion in November 2010(The period April 2010 to November 2010 exports in the country grew by 26.7 per cent to US$ 140.3 billion. On the other hand imports increased to US$ 222 billion.). This rapid growth in the exports from India urged the Indian Government to conclude that the total shipments in 2010-11 might go up to US$ 215 billion. FMCG companies have been wary of taking up product prices on account of this inflation. In the fourth quarter of the 2011-12 financial years, for instance, while volume growth

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was 09 to 15 per cent for most FMCG companies, price-led growth was five to 10 per cent only. The trend was no different for the first three quarters of the 2011-12 year, with price-led growth in the region of five to 10 per cent, as companies focused on volumes. Analysts say a good rainfall this year will be critical in keeping this volume-sales momentum going.

Coca-cola, a leading soft drink manufacturer, wishes to invest a huge amount of money ($5 billion) to improve their manufacturing units and distribution channels in India (which is an increase of $3 billion over its previous commitment in India) as they see a high potential growth in the soft drink industry in the next few years and would like to become the most preferred soft drink in India.

Consumers magnetism for FMCG They build and maintain great relationships, consistently influence (in a good way) the people around them, consistently make people feel better about themselves--they're the kind of people everyone wants to be around...and wants to be they.

1. Compensate awareness way more than consumer talk.

2. Don't practice selective hearing.

3. Position their stuff away.

4. Provide before they receive--and often consumer never receive.

5. Don't act self-important…

6. Comprehend other people are more important.

7. Stand out the spotlight on others.

8. Decide consumer words.

9. Don't discuss the failings of others...

10. Voluntarily admit consumer failings.

I n c re a s e i n S a l e s E f fi c i e n c y & Effectiveness of FMCG. As a marketing executive, under pressure to improve results, justify budget make a good strategy and deal with an everincreasing array of competitors. Strategic approach uses proven process management methods to help create sustainable, manageable and continuously improvable results of FMCG product.

Important strategic factors  Design or improve the sales process for better results  Move the Sales Management

FMCG   

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into the 21st century Create more effective sales compensation plans Develop or tweak your channel strategy Add an effective inside sales approach to the existing sales toolkit (or improve the best / select tools) Objectively evaluate appropriate CRM/MSA tools to meet the needs of the sales process Make sales people better presenters Train sales people Take Sales Operations function to the next level

Improving marketing proven process Initiative is driven by accountability, ROI, Six Sigma, Lean Thinking or any other process management method; marketers understand how to successfully apply these practices to marketing and sales. Even more, marketers know how to help you integrate them into a global marketing/sales process in FMCG products.

The majority FMCG product launches go through a four-step process: 1. FMCG product launch press, customers and sales people are all enthusiastic.

2. Initial sales expected but they don't materialize.

3. Disillusionment sets in; faith in the product begins to wane.

4. Inexplicably, at the eleventh hour, sales begin to improve.

This process contains a common theme.

Most product launch events, with their associated collateral materials, focus exclusively on product capabilities. They explain how this product is different and better; they dwell on each new bell and whistle. The launch is designed to sound exciting, and some very smart people put long hours into preparing a great product pitch.

The sales force is impressed, and that impacts the way they interact with

customers. How the product was communicated to them serves as their model when they communicate with their customers it makes them productcentered instead of customer-centered.

But even productobsessed salespeople become less enthusiastic when sales don't happen. Finally, when everyone is beginning to lose faith, the sales force stops focusing on the product, starts focusing on the customer, and sales begin to improve.

Inconveniences of FMCG Products Launch 1. Fast Growth 2. Customer expectations not satisfied.

3. New item exists in product mix.

4. Unknown/new category and consumer education 5. Revolutionary product with no market.

Prospects of FMCG Market research -Market research is the key. Without the necessary information, it becomes difficult to understand the requirements of the customers. It provides critical information and direction. It identifies market needs and wants, product features, pricing, decision makers, distribution channels, motivation to buy. They're all critical to the decision process.

Timing - Are elements of the process coordinated? Is production on the same time schedule as the promotion? Will the product be ready when you announce it?

Set a time frame for the rollout, and stick to it. Many products need to be timed to critical points in the business cycle. Miss it, and invite failure. There are marketing tales galore about companies making new product announcements and then having to re-announce when the product lags behind in manufacturing.

The result is loss of credibility, loss of sales, and another failure.

Capacity – If the new product or service is successful, do you have the personnel and manufacturing capacity to cope with the success? Extended lead times for new products can be just as deadly as bad timing.

Testing - Test market the new product. Be sure it has the features the customer wants. Be sure the customer will pay the price being asked. Be sure the distributor

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and sales organization are comfortable selling it. You may need to test your advertising and promotion as well.

Distribution – Who's / Which's going to sell the product? Can you use the same distribution channels you currently use?

Can you use the same independent representatives or sales force? Is there sufficient sales potential in the new product to convince a distributor, retailer, or agent to take on the new line? There are significant up-front selling costs involved in introducing new products. Everyone in the channel wants some assurance that the investment of time and money will be recovered.

Training - The sales organization involved in the marketing/selling, inside employees, and distribution channels will need to be trained about the new product.

If the product is sufficiently complex, face-to-face training needs to be provided. Or perhaps some type of multimedia program will do the job. If the product is not that complex, literature may work. Again, timing is critical. Train before the product hits the shelves, not after.

Promotion - The promotional program to support the introduction: advertising, trade shows, promotional literature, technical literature, samples, incentives, Web site, seminars, public relations.

Time it all with production, inventory, shipments, and training. The new product will simply sit in the warehouse without the right support materials. Research, timing, and planning can all help increase the probability of success.

Marketing business process in FMCG 1. Issue Identification and AssessmentIdentify and assess the company's current marketing efforts. Company Rate with our survey and target problem areas by understanding challenges, issues and strategies. The first issue in this series identifies the FMCG product in India and allows assess the company's current.

2. The Role of market relationship in FMCG product - Marketing is the "man in the middle"--mediating between Customers, Prospects, Sales, Development, and the Executive Team.

As such, Marketing is pulled in multiple directions. Marketing is the critical intersection between Development,

FMCG Sales, Customers, and the Executive Team.

A-Marketing touches Customers, Prospects, and industry thought leaders via press releases, magazine articles, briefings, brochures, trade shows, customer councils, advisory boards, and lead generation programs.

B-Drawing on the information gathered both externally and internally, Marketing s u p p o r t s t h e E x e c u t i v e Te a m i n developing business strategy by identifying market opportunities and generating and executing marketing strategies and plans that support attainment of business objectives.

C-Marketing works with Development to define requirements, plan products, and bring products to market. Marketing must assure the delivery of a reliable and "complete" product that includes documentation, training, and support. If relevant, marketing also addresses upgrade, migration and "end-of-life" planning.

D-Marketing trains the sales force on new products, manages the HQ visits of customers, prospects, and industry analysts, performs Win/Loss analyses, and gathers input on customer and prospect requirements.

3. The Classic Dilemma - Marketing has an obligation and need to support both Development and Sales. Creative thinking is required to assure that the needs of all parties are met.

4. The Selling Process - Identifying and understanding FMCG product target customer and documenting the selling process are critical success factors.

Proceeding without this information is like taking a long road trip without having a map.

5. Product Planning - Defining a new offering and getting it out the door is an exciting and challenging balancing act.

6. Growth and Change - The company grows the market changes, and the challenged to turn the resulting process breakdowns into breakthroughs.

7. Marketing ROI - The marketing programs are not aimed at identifying and

addressing the true needs of customers and prospects in a manner that produces measurable results.

8. Summary of Challenges and Strategies - The most common (and critical) challenges in FMCG product marketing--and proposed strategies to address them. The key is to be pragmatic and remain focused on identifying and addressing the true needs of customers and prospects .The fast moving consumer goods (FMCG) market grew in double digit in Q3 FY12. However growth was slightly lower compared to Q2. Despite a dull macro-economic environment almost all theFMCG companies posted a decent volume growth. The competitive scenario continues to remain high in the sector. Majority of the companies are taking calibrated price hikes to manage the top line and volume growth. The FMCG companies are persisting with innovations and product launches across segments, to maintain his volume growth, value growth, boost its margin and maintain market share. Most of the companies are keen on launching premium variants of its products at higher price. The sector will get good growth omentum, if the Finance minister increase the income tax slab, focus more on rural development and implant GST. Industry Expectations To continue with the specific excise duty structure for cigarettes at current level of taxation. Amend the existing excise slab of filter cigarettes of not exceeding 60 mm to a slab of length not exceeding 65 mm with a levy of excise duty of Rs 200 per 1000 cigarettes. Increase surveillance and stricter implementation of antismuggling measures.

No change in excise duty which current stands at 10%. Reduce excise duty form 10% to 5% on packing materials used by the food processing industry.

Reduce excise duty from 10% to 5% on packaged drinking water and processed food having excise duty of 10%.To include iced tea under section 4A of the Central Excise Act for the purpose of valuation with abatement.

Reduce customs duty from 10% to 7.5% on titanium dioxide (Titanium dioxide is the vital pigment used in paints) Reduce the customs duty from 12.5% - 20% to

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10% on industrial oils with FFA of 20% or more when imported for manufacture of soaps, industrial fatty acids and fatty alcohols.

Reduce customs duty from 15% to 10% on palm fatty acid distillate (PFAD), industrial mono-carboxylic fatty acids and fatty alcohols. To increase focus on the rural development.

To continue thrust and higher allocations to social and developmental programs–especially MGNREGA. To increase in tax slabs for personal income tax To clear timeline for GST implementation Implementation of DTC. Analysts/market expectations There is expectation of 12-15% rise in excise duties on cigarettes. A rise in excise duty of 200 bps To increase income tax slabs Reduction on expenditures on rural programmes Conclusion The emerging trends in new product launch (FMCG), has seen a wide range of innovations in India, even though we have drawbacks. This article highlights the different types of problems faced, the possible solutions and how GDP affects the growth of this industry. A clear understanding of the various processes involved, will enable the industry to cashin on the prevailing trends in changing consumer moods and interests. It is worthwhile to note that it is possible for FMCG Industries to bring about changes in their strategies in creating consumer preferences by suitably modifying interest pattern and preferences from their primitive mind set to modern ways of living. It is highly appreciable to note that the recent trend in FMCG industries and markets shifting their focus from urban to rural settings make new strategies, promotional polices and new pedagogy capturing this new launcher market segment in India.

NEWS

Lack of Food Processing Units wastes 30 per cent Fruits and Vegetables in Maharashtra

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aharashtra with a processing capacity of one lakh metric tonnes has failed to exploit the surplus vegetables and fruits produced in local markets thus resulting in nearly 30 per cent of the fruits and vegetables produced by farmers to be wasted.

According to the data furnished by government only 1.2 per cent of the fruits and vegetables are processed. While 70 per cent of the fruits and vegetables are consumed which are marketed as fresh there is a huge wastage of 30 per cent. The bulk of vegetables and fruits which goes as waste have the potential to provide for the food processing sector.

Chief Minister Devendra Fadnavis held a meeting with officials of NABARD and agriculture and horticulture departments to work out a concrete plan to promote the food processing sector in state.The state is all set to make additional provisions to promote the public-private-partnership model to boost food processing and marketing sectors across state.

Fadnavis said, “We will make a coordinated effort to promote the food

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processing industry which has a major potential to generate employment through small scale sectors. The emphasis on value chain is also to ensure

them to produce variety of fruits and vegetables which are essential for processing industry and withstand the competitive market in the sector.” It was suggested that fruits, pulp juice and concentrate units can be set up in MIDC industrial areas.

It is felt there is a potential for setting up of processing units for tomato, onion, cabbage okra, cauliflower etc.

farmers get better remuneration and also benefits the consumers.

The main crops those are available in state for primary and secondary processing includes grapes, pomegranates, cashew and mangoes, oranges.

Sources revealed, “While discussing the state’s road map ahead for 2015-16, pertaining to food processing industry, stress was laid on upgrading the technical know-how to the farmers to encourage

Sources in the ministry of finance admitted, “While there is a massive market for food processing in Maharashtra the primary concern relates to investment. As fruits and vegetables are perishable items the returns have been low which often dissuades the private players in the sector. ”The chief minister has assured that state will avail the Centre’s scheme which has huge budgetary provision under various schemes to promote food processing unit.

The center has spelled out the plans for mega-food parks. Currently, the state has planned five food parks worth Rs 406 crore.

Israel’s ICL Food Specialties to acquire Prolactal

ood ingredients provider ICL’s food specialties business unit has agreed to acquire the European dairy proteins producer Prolactal and its subsidiary Rovita.

enable ICL to offer a broader selection of

“We will leverage these capabilities to meet the evolving needs of our existing clients and to enter targeted fast-growing food and nutrition market.

Based in Austria and Germany, Prolactal offers a range of functional dairy proteins for beverage, dairy and meat industries to stabilise and improve the nutrition of products processed under a variety of conditions.

This new development is expected to help ICL Food Specialties to deliver innovative, value-added ingredient systems and also open up new market opportunities.

In addition, the combined operation will

including Prolactal and Rovita product lines.

”In 2014, Prolactal reported annual revenue of approximately €100m.

The transaction is expected to be complete during the first quarter of 2015.

texture and stability ingredients,

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Prolactal currently employs around 200 people and it operates two plants with the production process technology that is capable of complete fractionation of milk.

NEWS

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Need for global cooperation in Coconut farming Kerala is the only state which had started Neera production by amending t h e 11 2 - y e a r o l d A b k a r i A c t .

Production of Neera would bring 10fold increase in the grower’s income.

inister of state for agriculture MohanjiKalyanjiBhaiKundar iya, said major coconut growing countries in the world should extend a helping hand to the ailing coconut farmers in less-developed countries, Speaking at the inaugural ceremony of the 51st Asian and Pacific Coconut Community (APCC) ministerial meeting.

Kundariya said coconut was being grown globally in 12.4 million hectares and the annual global production is 7072 billion nuts. Over 20 million people across the world depend upon coconut farming for their livelihood.

The minister said, like most of the coconut growing countries in the world, in India, coconut is a small and marginal farmer’s crop. “When policy makers talk and think about coconut, our aim should be the progress of these small farmers,” the minister said.

In the last two decades, efforts targeting the development and research on coconut, technology for cultivation and

The farmer could earn a minimum of Rs 15,000 from a tree per year. Neera sugar is being actively marketed in Indonesia and Philippines.

product processing has improved substantially. But the benefits of improved technology have not been reaching to coconut farmers.The minister praised the Coconut Development Board’s (CDB) initiatives to form Farmer Producer Organizations (FPOs) and also opined the FPOs can play a lead role in increasing production, productivity, augmenting production of good quality planting material, aggregation of the product for primary processing, better by-product utilization and value-addition through marketing.

“The arrival of Neera would not only boost the coconut sector but also the economy of the state as a whole,” said K Babu, minister for fisheries, ports and excise, Government of Kerala.

India looks forward to sharing of knowledge, technologies and experiences with all the 18 Asian and Pacific Coconut Community member countries during the five-day session, said TK Jose, chairman of CDB. Agricultural, agro news, agro processing news, Latest News, news agriculture india, Oil & Food Journal

Banks need to step up their disbursements to the farm sector: Fadnavis

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evendraMaharashtra state chief minister Devendra Fadnavis said, banks need to step up their disbursements to the farm sector in the state without further delay and utilise

their credit limits for the year fully.

Chief minister Fadnavis said, “We are an agri-stressed state because of lack of investments” said admonishing the bankers at a presentation made at the ” State Credit Seminar 215-16″ organised by Nabard. “We cannot be still assessing the projects even in the fourth quarter (of the financial year) and limits are not utilized.” The Nabard paper noted that utilization of limits for long term loans was very low in the state. While 79% of target was achieved with respect to agri loans under priority sector, in case of crop loans the utilization was 90% and in case of agri-term loans was only 54% in the state.

Besides, Fadnavis also stressed the need t

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o step investments in enhancing warehousing facilities in the state. ” Nabard, state government and banks need to work together to boost agriculture in the state. We need sustainable practices and quality of expenditure and the need to focus on credit enhancement. The Banks and State Government agencies should take the funding made available by NABARD to end farmers and people.

Micro Level planning is very important at this stage to efficiently implement credit enhancement plans. More farmers should be part of Agriculture, value chain.

NABARD should take weather advisory services to Grampanchayat level also, so that farmers are educated to deal with climate mitigation”

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NEWS

Nabard hook credit potential of Rs1.08 lakh crore for Agri, Rural sectors in Karnataka

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ankers in Karnataka have the potential to extend credit of up to Rs 1.08 lakh crore in 2015-16 for agriculture and allied sectors, medium and small enterprises and development of rural infrastructure, according to projections made by the National Bank for Agriculture and Rural Development (Nabard).

policies, strengthening of rural infrastructure, market forces and cost escalation among others.

The adoption of ABS through cluster approach with assured backward and forward linkages is expected to result in increased ground level credit to allied agricultural activities, Chintala said, exhorting the bankers to create awareness among farmers with respect to adoption of better technology and best practices.

The estimates represent a 26 per cent increase over projections made for the current financial year.

Of the total estimated potential credit projections, close to two thirds (64.58 per cent) was assessed for agriculture and allied sector, 12.29 per cent for the medium and small enterprises, including agro processing units, and 23.13 for the other priority sector.

Releasing the State Focus Paper for 201516, Nabard’s Chief General Manager GR Chintala said the potential linked credit plans (PLPs) for 2015-16 were prepared on the edifice of base PLPs for 2015-16 after accounting for factors such as changes in government’s priorities and

outlay of 952 crore. These proposed schemes are in sectors such as dairy, poly house, agro processing, storage and small ruminants, plantation, horticulture and sericulture.

Chintala said that keeping the importance of capital formation in agriculture sector for its sustainability over a period of time, the paper is focused on “accelerating the pace of capital formation in agriculture and allied sector.

In its efforts to facilitate increased credit flow to agriculture, the bank has identified 74 area-based schemes (ABS) in the 2015-16 credit plans involving an

Karnataka Horticulture Secretary Rajeev Chawala said sectors such as sericulture, horticulture and the possibility of tapping and processing of neera from coconut trees hold potential for credit expansion.

He said the survey of horticulture farmers in Karnataka has been taken up and the result for about 7-8 districts will be made available this year, which would give an insight on credit profile and the cropping trends among others.

Acceleration of Agri GDP growth in 11th plan 2.5 per cent in the 9th plan.

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griculture GDP growth has accelerated in the 11th plan, to an average rate of 3.3 per cent, compared to 2.4 per cent in the 10th and

The percentage of the population below the poverty line declined at the rate of 1.5 percentage points per year during 2004-05 to 2009-10, twice the rate at which it declined in the previous period 1993-94 to 2004-05 and rural real wages increased by 6.8 per cent annually in the 11th.

India’s food grain production has more than doubled over the decades that

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followed colonial rule to a record 264 million tonnes in fiscal year 2014. But, to feed the fast growing population, with more than a quarter of them still estimated to be below the poverty line, the country needs to produce more.

Even as the country has progressed in laying out the basic framework to take the economy to high growth path by building roads and ports and ramping up foodgrain production, a fast growing population and infrastructure woes demand more work to be done on multiple fronts.

NEWS

Mother Dairy declared as a “public authority” by Delhi high court under RTI Act

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ational Dairy Development Board (NDDB) subsidiary Mother Dairy Fruit and Vegetable Private Limited has been declared a “public authority” as defined under the Right to Information (RTI) Act, making it amenable to disclosure of information.

The High Court also said that incorporation of Mother Dairy as a wholly owned subsidiary of NDDB was for better management of certain undertakings.

A Delhi High Court bench of Justice VibhuBakhru dismissed the petition filed

by Mother Dairy Fruit and Vegetable Pvt Ltd, which had challenged the Central Information Commission (CIC) April 15, 2011 order holding it to be a “Public Authority” within the meaning of section 2(h) of the 2005 RTI Act. “The entire equity of the petitioner is held by the NDDB. Thus, even though petitioner’s Board of Directors manages its affairs, NDDB would exercise control over the affairs of the petitioner as its principal shareholder.

“The power of shareholders of a company to appoint and remove directors results in them exerting real influence over the affairs of a company. The Central Government retains complete control over NDDB and for all practical purposes; it is an instrumentality of the

Central Government.

“In the present case, the basic infrastructure of the petitioner’s (Mother Dairy) undertakings waspromoted by funds provided by the Central Government; whether the said funds found their way through NDDB or otherwise is not material.

“Thus, in my view, the petitioner would also be a public authority on account of being substantially financed by the Central Government,” the bench said.

“A body which is owned or controlled by an appropriate government would not cease to be controlled by an appropriate government only b e c a u s e a n intermediary corporate entity is introduced for better management.

Plainly, NDDB is under the control of the central government and the petitioner being a subsidiary of NDDB would be indirectly under the control of the central government,” it said.

The CIC’s April 15, 2011 order had held Mother Dairy to be a “Public Authority” and directed it to appoint a Central Public Information Officer (CPIO) and an Appellate Authority.

Senior advocate Arvind Nigam, appearing for Mother Dairy, contended that the petitioner was a company registered under the Companies Act, 1956 and a subsidiary of NDDB. He argued that Mother Dairy had neither received any finances from central government nor does any government hold any equity capital of the petitioner.

Therefore, CIC’s order that the petitioner was a public authority was “erroneous”.

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Starbucks to offer Coconut Milk as Dairy alternative

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oconut milk will be available nationwide at Starbucks stores.

In the second-largest Starbucks request of all time, Starbucks said it received 84,000 customer requests for a non-dairy alternative to dairy and soy through their suggestion website, the company said in a

press release.

The coconut milk option will cost you an extra 60 cents. However, that’s the same as the cost of using soy milk in your coffees and teas.

The company tested out coconut milk in certain store locations last October, before deciding to incorporate it into the permanent menu. Starbucks product innovators took the idea of using the milk alternative to the kitchen, researching and developing recipes for classic drinks made with coconut milk, before the February announcement.

Starbucks Single Origin Coconut Milk, the official brand the company will use, is certified vegan and sourced from coconuts grown on the Indonesian island of Sumatra. The move from the world’s biggest coffee chain also comes as smaller rivals such as Peet’s Coffee and Coffee Bean & Tea Leaf also offer non-soy dairy milk alternatives.

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