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Changing tastes: how Indian tea lost steam in the global market TheN�GreatIiIndianniFinanci CrunchNIDemonetizatio

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India's one & only App for Agro & Food Processing industry News Topics:

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•Food Processing News •Corporate News •Food Safety News •Beverages News •Dairy News •Agro Processing •Tea & Coffee News •Food Processing Machinery News •Trade News •Chocolate News •Confectionery News •Refregeration & Cold Chain •Meat & Poultry News •Packaging News •Sea Food News •Biscuit & Bakery News •Snacks & Namkeen News •Fruits & Vegetables News •Ice Cream News •Spice News •Event News •Retail News •Oil & Fats News

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Rise of Coffee Culture in India

Food Health drinks:

The next emerging segment in beverages industry

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Snacks: From Hunger

Satisfaction to Health Benefits

Processing Industry : Dynamics and

Developments

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Food fortification:

Govt new initiatives to advance

India’s nutrition goals

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‘Today Industry seeks for premium packaging’

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77 Green always ensure quality production: Bhavesh

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Ice cream industry hopes for huge outside investment

Edible oil tax slab may be revenue-neutral

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Click to Brick: Amazon Go

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Premium packaging unleash shelf appeal

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EDITOR Manzar Aftab Naqvi CONSULTING EDITOR Basma Hussain GROUP EDITOR Firoz H. Naqvi firoz@advanceinfomedia.com Graphic Designer Naved H. Kazmi naved@advanceinfomedia.com Anjali Mane Advertisement Execultive anjali@advanceinfomedia.com Circulation Seema Hayat Shaikh seema@advanceinfomedia.com Delhi Sayyed Shahnawaz +91-8375034558 Gujarat Brijesh Mathuria +91-9924546999 Genreal Manager Gyanendra Trivedi Marketing & Circulation Office 121,1st floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist. Thane- 401107 Telefax : +91-22-28555069, Tell.: +91-22-28115068 Mob.: +91-9867992299 E-mail: info@agronfoodprocessing.com sub@advanceinfomedia.com Vol 12 Issue 02 December 2016 Annual Subcription Rs.950/By Normal Post Add Rs. 400/-For Courier Charges Add Rs. 50/- For Outstantion Charge Overseas $80 By Air Mail Email:sub@advanveinfomedia.com Single Copy Cost Rs. 100/Printed, Published & Owned By Manzar Aftab Naqvi RNI No. MAHENG /2005/15987 Postal Regd. No. THW /50/2014-2016 WPP License No. MR /TECH /WPP-308/TW /2016 Regd. Office Advance Info Media & Event 103,AmarJyot Apartments, Pooja Nagar, Mira Road (E) Dist Thane-401107(Mumbai) Printed At Rolleract Press Services A-83,Ground Floor, Naraina Industrial Area Phase-1, New Delhi -110028 The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue.

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EDTIORIAL

early three weeks later, India is still deeply divided over Narendra Modi’s radical move to pull out the Rs500 and Rs1000 notes from circulation. The inconvenience and pain of demonetisation have been evident: People have died in long queues outside banks, the informal economy is at a near standstill, and money is in short supply.

Given that economics is not every politician's cup of tea, what were the experts in this country drinking while rolling out this scheme? Did nobody tell the government that only 53 per cent India has bank accounts? Did nobody tell them that printing Rs 2,000 notes will create more problems because nobody would have smaller notes to break them? Did nobody tell them that at the least they should print notes that could fit in the ATM cassettes, and print smaller notes first?

But the government’s argument has been straightforward: By taking two of India’s biggest currency denominations out of circulation, it hopes to be able to clamp down on black money, thereby curbing corruption, improving tax compliance, and choking terror-funding.

Well all is bad in this utopia, Dairy milk cooperatives across several big states are happy about the demonetisation-led boost to banking. Karnataka Milk federation, which daily procures 70 lakh litres milk from 9 lakh farmers across 14,000 societies will start making the weekly payments via bank accounts, and Hatsun Agro, a leading private dairy player form Chennai which procures 28 lakh litres milk daily and disburses Rs 73 crore every ten days to farmers has been making 99.65 % of it payments through banks accounts for the past one and a half years.

Amul had 18000 societies that were disbursing about Rs 450 crore per week i.e. Rs 2-3 lakh per society in cash to milk producers is facing trouble as the farmers and their representative are not ready to go for digitization, but Amul thinks it will soon settle the issue.

Mother Dairy which currently procures 35 lakh litres milk daily and pays Rs 80-90 crore a week to farmers, also makes direct cash transfers to its five farmer’s procurer company who are facilitating farmers to open accounts.

Now time for some nous, so natural flavours & fragrances (F&F) demand in food is expected to $ 960 million in 2020 from $760 million in 2015, the year in which it accounted for 34 per cent of total F&F demand. Many variables affect the food industry and, in turn, demand for natural flavour blends, essential oils and natural extracts, and natural aroma chemicals. Demographics pertaining to age and ethnicity, as well as health and wellness trends play an important role in shaping food preferences that affect flavour demand.

Consumer preferences have a significant impact on the outlook for this market.

Dairy products represented the largest application for natural food flavors in 2015, supported by consumer preference for natural flavors in ice cream and yogurts, as well as growing popularity of yogurt products among consumers.

Future Consumer, which has 27 private brands in its food and FMCG portfolio, has managed to grow only six of its top brands so far at about 80 per cent. Top-selling staple brands such as Golden Harvest and Tasty Treat were primarily responsible for growing the topline which stood at Rs.564 crore.

Future Consumer recently raised money from PE funds from the World Bank arm of IFC to narrow down its interest cost and reduce its debt levels and has invested in building the Kosh brand of oats and expects it to become the third grain after wheat and rice. It now wants to make oats (Rs.300 crore) as big a category as instant noodles (Rs. 4,000 crore) and take it to the centre of the plate.

Ending my editorial on fun note, Coca-Cola is feeding our selfie addiction with its new “selfie bottle. The bottle’s base is fitted with a camera so that when you tilt it at 70-degrees, it automatically snaps a photo of you taking a swig. More importantly, you can immediately share said photos to Snapchat, Facebook, or Instagram.

Well hopefully I can get hold of this selfie bottle someday, and click pictures with my family, colleagues and friends!!!

Till next time.

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Health drinks the next emerging segment in beverages industry

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eople all around the world especially in India are moving towards health drinks. Study reports says that Indians are preferring health drinks over the aerated and carbonated drinks. Even the government and food regulator of India FSSAI has showed serious concerns on carbonated drinks. The country ranks second in world population with over 1.3 billion residents co-existing together. With such a huge number, there are multiple dreams,

thoughts, aspirations, food cravings, and thirst for drinks in a specific geographical area.

As per research, Indians spend more on nutritional and health supplements to combat the various health problems.

This indicates that people are concerned about their health, but are unable to devote time for it. The non-carbonated beverage industry has great potential for future developments in India. Flavoured

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BEVERAGES NEXT

milk, energy beverages, weight-directed products, ready-to drink meals and functional beverages could prove to be as substitute of fizzy drinks in Indian market.

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BEVERAGES NEXT respectively. Average price of health drinks per unit is USD 3.81 and average value per shipment is 6,266.

Though the beverages industry in India is growing exceedingly well, the segment of light, health and low-calorie drinks is showing upward trend in the recent years.

Consumers now want something that is nutritional because of the increasing health issues due to high sugar content level in carbonated beverages is a matter of concern. These health products are specially made to provide energy and nutrition, and people from all age groups consume it. Hence there is a hard competition between the various health drink brands in the country to gain market share. The basic marketing strategies - product, price, promotion, and place are used to capture the target audience and to develop the health drinks market.

As the purchasing power continues to increase, the preference is more for health drinks. Soft drinks companies like The Coca-Cola Co and PepsiCo, Dabur, Parle Agro are entering the health segment by launching new products.

As per Nielsen data, consumers are now opting for healthy beverages pushing Pepsi and Coca-Cola out of the top five highest sold beverages across modern retail chains in the first half of 2016.

In the beverages industry, the scale of volume and sales keeps shifting between aerated and health drinks. Aerated market sensed a threat with the emergence of new important segment – health beverages.

This new segment in this industry gained prominence in the recent times.

Consumption of fizzy drinks have been reduced because of health concerns.

As per figures from the Diabetes

Foundation and Centre of Nutrition and Metabolic Research indicates that India's annual per-capita consumption of all sugar-sweetened beverages has increased from around 2 litres in 1998 to 11 litres in 2014. To curb the growth of diabetes, obesity and other health aliments, health drinks is being promoted on every advertising platform. There is a need to reduce the intake of sweetened drinks because of excessive consumption of these are linked to lifestyle diseases, obesity, diabetes and so on. Indian consumers are price sensitive and opt for cheaper options without realizing the side effects. With awareness about the deterioration in health due to such drinks, indicating towards a probable decline in the fizzy drinks market. The health-conscious people are shifting to health drinks as they are considered a healthy option.

The import of health drinks in India is worth USD 169,182 with total quantity of 44,416. Malaysia is the largest supplier of health drinks accounting for imports worth USD 159,763 followed by Japan and Italy which exported health drinks worth USD 3,914 and USD 2,382 respectively. Dadri-ACPL CFS accounted for 94.4% of imports followed by Chennai Sea and Delhi Air Cargo which account for 2.6% and 2.4% of imports

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Probiotics – alternative healthy drink Probiotics are an important part of the complex world of foods that are beneficial for health and very necessary for proper digestion and immune health. Thus, supplementing with additional probiotics will help protect the digestive system.

Probiotics juices are best for lactoseintolerant people to receive benefits.

Multi-strain probiotic juices have more immune-boosting microorganisms that help in improving symptoms of lactose intolerance. Though this concept of probiotic drinks is relatively new, product awareness is of utmost importance to the consumers since it provides health benefits. The low level of awareness about the product amongst the consumers stands as an obstruction in the way of market growth.

The Indian probiotic market is evolving as one of the highest growth potential market in the world due to many factors namely such as changing food consumption patterns, health concerns among consumers especially

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BEVERAGES NEXT bowel movements. As per research done by the Journal of the American Medical Association in 2012, the consumption of probiotics reduced the risk of diarrhoea by 42%. Also, these supplements increase Lactobacilli counts in women and prevent diseases like bacterial vaginosis, yeast infection, and urinary tract infection.

Probiotic drinks also improve the interstitial microbial balance by lowering the pH levels.

the youngsters, increasing diabetic population, growing risk of lifestyle related and cardiovascular diseases and the rise in disposable income. According to ‘India Probiotic Market Forecast and Opportunities, 2019’ the probiotic market in India is anticipated to achieve a CAGR of 19.80 per cent during 2015-19 in terms of revenue. Northern India is leading the probiotic market in India with good sales revenue, followed by southern and central regions of the country. Danone Yakult, Amul, Mother Dairy and Nestle India are among the leading producers of probiotic and functional foods and beverages in India.

Marketing teams should implement innovative ideas so that people clearly understand the concept of probiotics.

For example Yakult had undertaken a direct marketing strategy by the name Yakult Ladies, wherein team of women visited homes to deliver the product and informed customers about the benefits of the usage. To educate Indians about the product concept, Yakult in association with Microbiota and Probiotic Science Foundation, conducted seminars to spread awareness about the benefits of probiotics in treating diseases. Consumer awareness about the importance of probiotics for good health is necessary in today’s times.

The global probiotic drinks market is anticipated to grow at a CAGR of more than 7% by 2020. Probiotics are highly recommended for lactose-sensitive people as that aids the body in digesting lactase. Lactose intolerance is a condition where the body is unable to digest lactose,

a type of sugar found in milk and dairy products, because the small intestine does not make enough lactase, the enzyme that digests lactose. The adult population of the world, about 73 per cent above 35 years of age are lactose-intolerant. These probiotic juice drinks are available in vegan and gluten-free varieties and are dairy-free containing 20 billion active and live probiotics per serving, making it appropriate for lactose-sensitive people.

Health benefits with probiotics drinks Probiotics consumption prevents the growth of harmful bacteria inside the digestive tract that leads to an improvement in nutrition absorption and

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Clinical studies have proven that intake of probiotics averts the overgrowth of harmful microbes such as Candida, Escherichia coli, Helicobacter pylori, and Salmonella. Studies have also shown that probiotic yoghurt consumption shields the immune system against cancer in colon, breast, and bladder approximately by up to 35%. The health benefits of probiotics drinks are also that they help to reduce dental caries, prevents oral candida infections, and manages periodontitis.

Over the years, the demand for probiotic drinks is bound to increase due to such health benefits, hence the probiotic manufacturers should gear up to cater the market demand.

GST and its likely impact The Indian government is set to introduce the GST (Goods Service Tax) in the next

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BEVERAGES NEXT The multi-billion dollar investments previously lined up for between 2012 and 2020 could also be terminated in the wake of this new tax structure in India. Till date, unfortunately sugar-free sodas have failed to create a mark in India. As per records, products like Diet Coke and Diet Pepsi occupy less than 1% slice of the country's soda market. However, both Coca-Cola and PepsiCo have recently promised to cut back or reduce sugar levels in India, all for the sake of healthier living.

financial year. GST is an all-inclusive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace taxes levied by the central and state governments. The introduction of GST will be a noteworthy step in transforming the taxation system in India. The combination of several central and state taxes into a single tax would alleviate double taxation, facilitating a common national market.

Once GST is into effect, it should lead to easy administration.

The central and state governments have fixed four tax rates - 5%, 12%, 18% and 28% respectively depending on the product category. With GST, the government got a chance to re-evaluate the tax position of soft drinks. According to sources, earlier this year in February, the central India excise tax on ‘aerated soft drinks’ was to be raised from 18% to 21%, though subject to a 40% drop (or tax incentive). This is in addition to state variable VAT which averages out at around 14%. Therefore, with great displeasure the Indian Beverage Association (IBA) accepted the Government's decision to classify these drinks as luxury items, thereby carrying the same tariff as luxury cars. Furthermore, an additional cess (or tax) would also be levied on top of

the 28% tax rate. The reason for IBA’s members displeasure is because the retail prices as low as INR50 (US$0.74) per litre (this differs depending on brand, pack and location), sodas cannot and should not be considered to be luxury goods. The second reason is against the high tax level, though carbonated, sodas serve a consumer hydration need.

Once into practice the revised tax structure would adversely affect the Indian CSD market, because though these drinks are affordable and are consumed by people from all strata of society including both rural and urban. There will be predictable price rise with GST into effect, that will make carbonated beverages a luxury item catering to the elite and middle class. PepsiCo and Coco-Cola India are in a fix as this would also impact the employment scenario in the industry if aerated drinks demand drops. They will have to shut down its 50-or-so factories and bottling plants, because of an increased tax burden and reduced demand.

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PepsiCo health drink – Game Fuel To tap the growing segment of healthconscious customers, beverage and snacks major PepsiCo have placed their focus in this area by launching new drinks. PepsiCo India Vice President, Beverage Category, Vipul Prakash defined functional drinks as those containing vitamins and mineral. “We feel hydration drinks and functional drinks are a big opportunity. Health and wellness is our focus, that is where the customer is moving. Trend is towards health-related drinks. We will launch more products in these segments.” Recently the company launched a new product under Mountain Dew brands -Game Fuel.

He said, “We have launched new product under Mountain Dew brand, 13 years after it was launched in India. Game Fuel brand is present in the US and India is the second country where it has been launched.” Prakash also added that, “This year was a big one for us. We launched 7UP Revive and Nimboo Masala Soda nationally. We also launched Game Fuel this year.” Game Fuel has been launched in 600 ml PET bottle and 250 ml can and is available at the price of Rs 35 and 25 respectively.

‘Ojasvita’ -health drink launched by Sri Sri Ayurveda The health drink – Ojasvita is a consumer product launched by spiritual guru

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Shankar company, Sri Sri Ayurveda.

Ojasvita is available in different flavours namely vanilla, strawberry, mango, chocolate, and Ragi. In the year 2003, Sri Sri Ravishankar stepped into the FMCG market with his company by the name of Sri Sri Ayurveda (SSA) which mainly focuses on Ayurvedic products. SSA has various categories of products which caters to the market target audience. The company selected sports celebrity and Olympic silver medallist P V Sindhu to be the brand ambassador for their health drink.

Hamdard latest innovation - RoohAfza Fusion The 100-year-old iconic FMCG company Hamdard Laboratories India entered the ready-to-drink beverage segment with the launch of ‘RoohAfza Fusion’, a brand extension of its flagship brand RoohAfza.

It is available in modern tetra-pak aseptic packaging that preserves both the taste and flavour of the product and priced at Rs 20 for 200ml pack.

Chief Sales and Marketing Officer, Hamdard, Mansoor Ali said, “In the last few years, there has been a perceivable growth in the popularity of instant or ready to serve juice based beverages.

There has been a change in consumption patterns, especially in the youth who are now turning to natural, herbal products which are perceived as healthier. Fusion is a natural extension in the format that connects with the youth. Fusion extends

the brand to new consumers, while retaining our existing users and offering them an exciting variation of their favourite RoohAfza in fruit flavours.”

Amit Aneja, AGM Marketing Hamdard said, “Juice based drinks happen to be the fastest growing segment under the soft drinks category and is projected to grow by 2.5 times of its current size by 2020. So, with RoohAfza Fusion we are entering the right segment at the right time.”

Coke Zero with zero sugar by Coca-Cola ‘Coca-Cola Zero’ better known as ‘Coke Zero’ in the market claims to be one of the fastest selling product under the brand globally. Coke Zero is sold in 150 countries. Coca-Cola Company launched Coke Zero in the Indian market. It comes with zero sugar yet retaining same taste of the original Coca-Cola. The new product has been launched in 15 cities across the country.

Coke Zero is available in three different quantity packs, the regular bottle (500 ml) priced at Rs 65, 300ml at Rs 75, and 180ml priced Rs 45 respectively. This launch is part of the marketing plan with an aim to diversify the portfolio in regards to the changing taste and preference of consumers.

President of Coca-Cola India and South West Asia, Venkatesh Kini said “The launch completes our Red-Grey-Black suite under the Coca-Cola One Brand strategy.”

With every passing day, Indians are becoming more health conscious

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BEVERAGES NEXT the beverages company has plans to launch many low-calorie drinks in India.

Low-calorie beverages in Coca-Cola’s global portfolio also include Fanta Zero.

“There’s health consciousness, and people are opting for low-calorie drinks. We have a few low-calorie drinks like Coke Zero that we sell in different markets. We are evaluating, but are yet to finalise which one to launch.” said Kini.

As per estimates by market research firm Nielsen, low-calorie sparkling drinks market has been growing at a fast rate.

Between September 2014 and August 2015, the growth was at the rate of 39 per cent.

Conclusion The total market of health drinks is placed about 90,000 ton and is projected to be reach about 4 per cent. Consumers are the sole reason for the existence of commercial establishments. Hence one of most important activities of any company is to attract and retain consumers. People want nutritious drinks but if these products are available at a reasonable price then the consumption pattern will rise. If people do not consume, then these packs/ boxes just stand on the shelf untouched.

The short shelf life of these health drinks is another drawback, that comes in the way for this developing segment in the beverages industry. The companies must focus on the continued investment in the health food drink category and improve the consumption pattern.

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FDI

Ice cream industry hopes for huge outside investment I ce Cream industry is now in the race with those industries who are receiving the investment from outside. Recently, Motilal Oswal Private Equity Investment Advisor (MOPE) has invested Rs 110 crore in Bengaluru-based Dairy Classic Ice Creams for a minority stake. Industry key players called this investment as a benchmark hoping that it will pave the way of investment for the 12000-crore ice cream industry.

Ice-cream, which was considered an indulgent category in the past, has now

evolved to a stage where it is largely and happily perceived as a snacking option by consumers. This change in perception has come about thanks to increasing disposable incomes and greater discretionary spending. Also, the growing reach of the media has allowed operators in this category to expand their range and recall value.

The change in the perception of consumers has allowed the industry to grow in volume. Ice-cream, as an industry, has

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been growing at a healthy CAGR of ~1015 percent.

Growth of the industry can be attributed to large investments in advertising and infrastructure development, diversification and widening of product portfolio to target different consumer segments, and entry of multinationals.

The category’s growth has provided impetus to international and regional players to foray into the market.

After the decision of Indian Government

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

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16 www.agronfoodprocessing.com to allow 100 per-cent FDI in retail food processing the ice cream industry was excited as the way was clear for the investors to venture and capture the fastest growing market of the country.

Research Institute (CFTRI) and Oleome Biosolutions. The company offers a complete product basket consisting of cups, cones, sticks, candies, sundaes, take-home packs. Tulsyan said Dairy Day has been growing at a scorching pace of 15% year-on-year over the last few years and has a strong presence in Karnataka and Tamil Nadu.

FDI that the industry is growing at a CAGR of 10-15 percent. This growth is, and will, supply momentum to ice-cream consumption, especially in the branded and new/innovative categories. With the growing consumer base, increasing disposable income, and greater trend toward eating-out, the market stands poised to incorporate bigger players and more novel concepts.

Making use of the opportunity and marking its second investment in the dairy and milk products space Motilal Oswal Private Equity Investment Advisor (MOPE) has invested Rs 110 crore The company is expanding its store in Bengaluru-based Dairy Classic Ice footprint in tier-2 and tier-3 cities. "We On asking about Motilal Oswal venture Creams for a minority stake. It previously are growth capital investors. We identify with Dairy Classic Havmor Managing invested Rs 50 crore in Growth of the industry can be attributed to large investments Director Pradeep Chona said Parag Milk Foods that went in advertising and infrastructure development, diversification it’s a very good move for the public in May this year. The and widening of product portfolio to target different consumer entire industry. If such kind investment will be made segments, and entry of multinationals. The category’s growth has of investments will come in through its India Business provided impetus to international and regional players to foray into ice cream industry there will Excellence Fund-II and the market. be more and better Indian India Business Excellence and foreign companies take Fund-IIA. companies in this sector for the long term, interest in ice cream not for the next 5-6 years, but for the next business.

Dairy Classic has a strong foothold in 15-20 years," he said. "We want them to South India through its brand Dairy double their capacity and reach a revenue Pradeep Chona Day and manufactures 125 variants of of Rs 500 crore by the next 5 years. Their said that Havmor ice cream and frozen desserts. Founded current revenue is over Rs 150 crore." is also looking for in 2003 by a team of professionals who some investment quit their MNC jobs to pursue their Jagannath M N on the same lines, passion of making ice creams, Dairy and A Balaraju, he said he open for Classic operates through a network of directors of Dairy good offers. Pradeep said we are the only over 15,000 retailers and 5,000 dealers Classic, said, ice cream company of this scale which in major cities in South India. It has a "Partnering with doe its business passionately. Our focus state-of-the-art production facility in the Motilal Oswal is only and only ice cream other than city with a capacity to produce 30,000 Private Equity will biggies in this sector, doing various other litres per day. The company is planning help Dairy Day kinds of business or product ranges. a production unit over 1 lakh sq ft on the to achieve its multi-pronged goals of outskirts of the city. becoming one of the leading ice cream Chona said “Indian ice cream industry brands in the Southern India." Ernst & is in good shape now and more such "With the rise in disposable incomes and Young acted as the financial advisor to investment venture is expected in times improved infrastructure, we see the dairy Dairy Classic for the transaction. to come”. space has a long tailwind. Consumption of these products is bound to increase The change in the consumer preference The industry is looking for such with higher incomes. But apart from from traditional ice cream to premium investment as this will give a boom to the the space, we also focused on the high- brands has now created the market base Indian ice cream industry. Comprising quality management that the Dairy Day for international companies to launch more than 10000 manufacturers the team has. The co-founders have worked their premium ice cream brands. The industry is making its place in the rural in large corporates and are a competent industry is seeing a growth of 35 per India too. The major companies are team. This is a value add for us," said cent year-on-year basis, which makes it spreading its arm in two and three tier Vishal Tulsyan, CEO of MOPE. an attractive destination for international cities. brands.

Recently, the company developed With India's ice-cream industry growing NutriIce Creams — an ice-cream/frozen According to the industry experts this at close to 17 per cent, regional brands dessert, rich in Omega-3 fat (vegetarian investment by Motilal Oswal is of first Havmor and Vadilal have upped the source), which it says is the first of its of its kind and after this the industry will decibel levels and taken their campaigns kind the country has done in collaboration surely manage to attract the investment national this year while veterans - Amul, with Central Food Technological even from the foreign. Experts said Mother Dairy and Kwality Walls among

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FDI

others - are banking on new flavours and an emerging premium category in urban areas to expand the market. From Rs 7,300 crore in 2014, the ice-cream category has bumped up to Rs 8,530 crore in 2015 and to touch 12000 crores by 2017.

Commenting on investment Madhya Pradesh based Top N Town chief Arun Ramni said that he is unaware about the exact deal but Dairy Classic created a bench mark. In south, the realisation cost is much better than North and West and realisation helps in making good RMPM cost across the country with a good margin of profit that help making the valuation of the company.

the status of an established industry.

When it comes to investors, they always look for transparency in every record and smooth functioning in the company. With the industry having a growth rate of 1520 per cent on yearly basis, I see there is a huge potential for capital consumption, he said.

last six months, discussions are ongoing with KPMG for the same. In-house we are all set and prepared to meet the industrial needs, in terms of technology and packaging units and the rest. We want to expand our front-end as well so there is appropriate fund requirement for marketing”, he said.

To attract FDI the Food Processing Minister had recently visited the United Kingdom, Italy and France and asked the investors to venture with Indian companies. Experts believe that after these visits the Indian dairy industry along with food processing will get huge investment. Experts believe that the investment will help this sector to touch new heights.

Naturals director said that it is a popularly known fact that Indians have a sweet craving post their lunch/ dinner, the ice cream manufacturers should make utmost use of this opportunity. There is need to establish more ice cream parlours/stores in the market, because there is not enough supply as per the market demand. He disclosed that even Naturals is looking for investments but at the front-end, the company is still searching for good opportunities.

However, G. Chandran – Arun Ice Creams, Chennai do not have positive or negative thoughts on this issue. He said that this is not the first time that any company has received private equity (PE). G. Chandran believes on his own capabilities and ‘organic growth’, rather than ‘inorganic growth’.

Girish Pai Direct Naturals Ice Cream claimed it as abig gateway for the Indian ice cream industry. Indeed, it is a great pleasure and honour for the ice cream industry as earlier it was considered as unorganised segment. Pai said that the investment signifies that the ice cream sector has rightfully achieved

Expressing his excitement on this investment Ashish Nahar, Fun India Dairy, Nashik believe that is a very positive sign and will provide a new momentum to the ice cream industry in India. “At FID, we are in talks with a couple of private equity (PE) companies who are ready for such ventures. Since the

He believes that the investment will surely help the ice cream industry to attract the investors which was untouched by the investors. Ramani said that he is also in talks with the investors and soon the company will disclose its policy. He believes that the industry will receive lot of investment as it growing at the fastest CGAR in comparison to other sectors.

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The influx of international brands in the country is driving competition, and the industry is set to grow on the back of partnerships and franchises of brands to widen reach and distribution.

With increasing consumption, the production capacity of the ice-creams is set to increase with many manufacturers planning for expansion. Most of the ice cream projects are in the mode of expansion due to various reasons in this region. Companies are also working on new innovations as Indians are now looking for premium tastes with international quality and standards.

For the expansion of their units the ice cream manufactures are looking for the investment and the major companies of the industry like Havmor, Top N Town, Vadilal and others are in talks with the investors.

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UPWARD TREND

Rise of Coffee Culture in India Domestic coffee production is around 3.10 lakh tonnes (lt).

Coffee consumption in developed countries in North America and Europe is around 4-5 kg. Finland has the highest at 11 kg a person.

Brazil consumes half of its production and has, in the last decade, overtaken US in coffee consumption.

Gufran Naqvi

I

n Pre-Independence days people addicted to cup of Chai. The first thing offered whenever a friend or a relative comes home is a cup of Chai. This trend still exists but in most places coffee has replaced Tea.

“There is potential to increase this in the next couple of years.

Coffee Board has proposed a slew of measures to be taken up in the 12th Plan,” said Jawaid Akhtar, Ex- Chairman, Coffee Board.

Even though India is one of the biggest producer of coffee due to presence of British in India tea consumption was more when compared to Coffee.

Coffee consumption in developed countries in North America and Europe is around 4-5 kg. Finland has the highest at 11 kg a person.

Soon after Independence once the British moved of India tea was replaced by Coffee slowly atleast in Southern Part of India.

Brazil consumes half of its production and has, in the last decade, overtaken US in coffee consumption.

Coffee consumption in India has increased by a mere 40 per cent to 90 grams over the last decade but is still below the European average of 4 kg a person a year.

Coffee shops market in India is projected to grow at CGR of over 11% during 2016-2021, on account of the growing coffee culture among young population, increasing urbanization, rising disposable

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income levels and changing lifestyles preferences of consumers. There has been a significant change also in the way people work now(virtual offices), most of the coffee shops offer free Wi-Fi and entertainment zones. The demand for coffee brands is huge from New Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad. While they are expanding here at a break neck speed.

Talking about domestic consumption,

In India, nearly two-third of the population do not drink coffee.

There is huge potential for us to prepare a detailed roadmap to tap this. Domestic coffee production is around 3.10 lakh tonnes (lt).

Venu Madhav, Director, Café Coffee Day, said: “The emerging face of coffee

21 www.agronfoodprocessing.com “We anticipate high domestic growth in consumption and excess demand for coffee in the country, which now stands at 1.2 lt, while the rest is exported,” said Akhtar. in India is reflected in its fast growing ‘café culture’. We are adding lot of new consumers on daily basis. This addition is happening at fast pace in tier-II and -III cities, for the café culture has now entered these cities,” he added.

The Southern Tradition The exception to this rule are parts of Southern India, namely Tamil Nadu and Karnataka, where coffee has been enjoyed for generations. This is the region where, so the story goes, Baba Budan smuggled in his seven coffee beans from Yemen in the 17th century while returning from pilgrimage, beginning the cultivation of coffee in India.

For many people in these two states, coffee is the drink of choice. Street-side kaapi bars serve up delicious, frothy blends of filter coffee, hot milk and of course sugar.

Kaapi is the name of that Indian filtered coffee. There is a theatrical element to this tradition: “meter coffee” gets its name from the method of combining and frothing the hot drink by pouring it back and forth between one receptacle and another, often at an exaggerated height.

many Indians for the first time, and even in traditional coffee-drinking regions has brought more variety to the drink.

Baristas serve up espresso, cappuccino, filter coffee and latte to people who had far fewer options before.

A New Urban Space Young people were the first to jump on the café bandwagon. For the youth, a coffee house is not only a place to buy lattes and Frappuccinos, but also a muchneeded urban space. A café offers a neutral meeting place that allows friends and colleagues to get together in an appealing space that is neither a home nor a workplace.

The older generation has caught up fast with this new trend, and you can often see informal work meetings taking place in cafés. Not surprisingly, tourists are also big fans of cafés that offer them their caffeine fix in a cozy environment complete with Wi-Fi and air conditioning.

These days you can find coffee shops

UPWARD TREND in the 1950s, increasing from 18,893 tonnes in 1950-51 to 68,169 tonnes in 1960-61. Growth in India’s coffee industry, however, has been especially robust in the post-liberalisation era, backed by the government’s decision to allow coffee planters to market their own produce, rather than selling to a central pool. Coffee production in India stood at 348,000 metric tonnes (MT) in 2015-16.

Robusta variety accounted for 244,500 MT (70.3 per cent) of this production, while Arabica accounted for 103,500 MT (29.7 per cent).

The post-blossom estimate for 2016-17 is 320,000 MT (100,000 MT of Arabica and 220,000 MT of Robusta) India has emerged as the seventh largest coffee producer globally; after Brazil, Vietnam, Columbia, Indonesia, Ethiopia and Honduras. It accounted for 2 per cent of the area under production and 3.7 per cent of the production in 2012 as compared to 3.18 per cent of production in 1992-93.

In 2015-16, India accounted for 4.05% of

But the face of coffee consumption is changing in India. Just as Indian chai (or something like it) has become a staple in cafés in the West under the redundant name “chai tea latte,” European style cafés are now popping up all over urban India. Not surprisingly, southern cities like Bangalore have embraced this new trend and boast dozens of cafés and eateries where friends can gather and socialize over a cup of coffee.

The ambiance varies from squashy-couch comfort to artsy to upscale, depending on your preference and of course your budget.

This café culture has introduced coffee to

located in train stations, hospitals, airports, shopping malls, and other public spaces and institutions.

Production Coffee production in India grew rapidly

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global coffee production.

The area under coffee plantations in India has increased by more than three times, from 120.32 thousand hectares in 196061 to 397.147 thousand hectares in 201516. Most of this area is concentrated in the

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around 567 kg/Ha in 1961 to around 876 kg/Ha during 2015-16. For the traditional areas, productivity has grown from 412 kg/Ha in 1961 to 1,008 kg/Ha in 2015-16.

The industry is driven by the enterprise of around 280,241 coffee growers, out of which 99% are small growers, while 1% are medium to large growers. These plantations employ an average of around 632,993 people daily, as per estimates for 2015-16.

Export n Major States/Districts Of India(in MTs) Crop Area and Total Tree Population Unchanged Area harvested and plant inventory estimates remain unchanged. India accounts for about four percent of world coffee production and exports. Production mostly originates in the southern states of Karnataka, Kerala, and Tamil Nadu which account for 85 percent of planted area.

The non-traditional lower-yielding states of Andhra Pradesh, Orissa, and other northeastern states have seen a marginal increase in area, but opportunities for planted area expansion in these states is limited.

The rains in February and March are very crucial in determining the actual crop yield. Pre-monsoon rains (blossom showers) in March-April have been above normal in all traditional coffee growing states.

The well distributed rains will provide irrigation and moisture to the Robusta plants, but excessive wetness and water logging can affect the yields. White Stem borer remains a major pest issue affecting the Arabica crop. Other major fungal diseases such as leaf rust and black rot are the most widespread coffee diseases in India.

Across India, with coffee estates near protected forest reserves, there is limited opportunity for further area expansion.

Growers are gradually replanting their aging plantations at an annual rate of 2-3 percent per year which leaves a difference of approximately 40,000 ha between harvested and planted area.

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UPWARD TREND Cross Commodity Competition and Commercial Co-production Planters have diversified their coffee holdings by growing multiple crops under shade. Black pepper is a popular intercrop in Arabica plantations and the same has been supported by the Coffee Board. A major concern is that prices of pepper have risen last year from Rs 400 per kg to Rs. 700 per kg prompting growers to prune a lot of vines. As a result, the pruning of the trees with vines has affected the shade required for Arabica production.

Typically, the income generated is divided equally between coffee and pepper. Other crops that contribute towards the gross income of commercial coffee estates include silver oak, areca nut, orange and cardamom.

Production Forecast Higher with Favorable Early Weather Marketing year (MY) 2015/16 (Oct/ Sep) coffee production is forecast at 5.2 million 60 kg bags.

The 2015/16 crop is expected to be higher than the 2014/15 production estimate on account of higher Arabica and Robusta crop production as favorable blossom showers are expected to boost crop yields.

Robusta is the more popular variety and constitutes over 70 percent of the coffee production in India. The Arabica crop is

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expected to bear slightly higher fruit than last year as aging plantations continue to be replaced and replanted. The coffee plant takes nearly three to five years to develop from seed to first flowering and fruit production. Traditionally, the harvest of Arabica takes place from November to January, while for Robusta harvest is December to February.

The coffee production estimate for 2014/15 remains unchanged at 5.1 million 60 kg bags which is below the Coffee Board post monsoon estimate of 5.5 million 60 kg bags. Prolonged dry weather from mid-March harmed plant development and an unusually wet southwest monsoon with continuous rains for more than 60 days led to berry droppings, defoliation, and the emergence of fungal diseases. These heavy rains in key growing regions appear to have reduced yields of the Arabica crop. The Coffee Board’s final estimate for the harvested crop will be released at the end of June.

i.e., 2015-16 (348,000 MT). The postblossom estimate of Arabica for 201617 has shown a decrease of -3.38% (3,500 MT) over the corresponding final estimate of 2015-16, while the Robusta estimate has shown a decrease of -10.02% (24,500 MT) over the corresponding final estimate of 2015-16. The drop in 2016-17 post blossom estimate has mainly come from Karnataka to the tune of 22,175 MT followed by 6,730 MT in Kerala.

The reduction in post-blossom estimate

Post Blossom coffee crop forecast for the season 2016-17 The post Blossom crop forecast for the year 2016-17 is placed at 320,000 MT comprising of 100,000 MT of Arabica and 220,000 MT of Robusta. This is an overall decrease of 28,000 MT (-8.05%) over the final estimate of previous year

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UPWARD TREND of 2016-17 could be mainly attributed to the delayed blossom and backing showers coupled with high temperatures especially in major coffee growing areas of Karnataka and to some extent in Kerala.

In most of the coffee areas of Karnataka, the estates with irrigation facilities have irrigated their Robusta blocks for one round of blossom during Feb-March and with one round of backing irrigation.

But due to absence of subsequent natural showers, even the irrigated estates have suffered some setback due to prevailing high temperatures. The first spell of summer (blossom) showers were received only during the month of April and these showers were scanty and isolated in nature. These April showers did not cause any blossom in Arabica estates but resulted in scattered, uneven blossom in un-irrigated Robusta fields, which constitute about 40% of the Robusta area in Karnataka.

The hot and humid weather coupled with insufficient showers resulted in pinking and scorching of buds in Robusta.

The growers were unable to take up supplementary irrigations to top up the scanty showers due to drying up of most of water resources. However, during the first fortnight of May 2016 most of the coffee areas have received wide spread rains which served as blossom showers

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UPWARD TREND for Arabica coffee and backing showers for Robusta estates.

Further, the showers received during second fortnight of May 2016 served as backing for Arabica and helped in good crop setting.

In Karnataka, the post monsoon estimate is placed at 253,340 MT with a break up of 82,460 MT of Arabica and 170,880 MT of Robusta. This is an increase of 20,110 MT (8.62%) over 2014-15 final estimate of 233,230 MT comprising of 10.31% increase in Arabica (7,705 MT) and 7.83% in Robusta (12,405 MT). Among the districts, Kodagu district recorded an increase of 15,585 MT (12.76%) over the final estimate of 2014-15 and this increase was contributed by both Arabica (3,055 MT or 16.94%) and robusta (12,530 MT or 12.04%).

Chikmagalur district recorded an increase of 4,730 MT (5.98%) over the final estimate of 2014-15 which was contributed by both Arabica (4,225 MT or 11.06%) and robusta (505 MT or 1.24%). While Hassan district, unlike other two districts, showed a marginal decline of 205 MT (-0.64%) over the final

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estimate of 2014-15, wherein Arabica has shown an increase of 425 MT (2.29%) while robusta has shown decline of 630 MT (-4.66%).

• Apart from adverse weather conditions, the 2016-17 is an off-year for coffee crop in the country as the previous year (201516) happened to be a bumper year with an all-time record highest crop.

• Among the states, the 2016-17 post blossom estimates for the Karnataka state is placed at 229,345 MT comprising of 74,485 MT of Arabica and 154,860 MT of Robusta. All the three districts recorded fall in production over the previous year’s (2015-16) final harvested crop estimate with Robusta recording a highest decrease of 18,010 MT (-10.42%) followed by a reduction of 4,165 MT (-5.30%) in Arabica production. Among the districts, Kodagu recorded highest decrease of 15,865 MT (-11.55%) followed by 5,215 MT (6.36%) in Chikmagalur and 1,095 MT (3.40%) in Hassan districts.

• In Kerala state, which is mainly a Robusta producer, the post blossom estimates for the year 2016-17 is placed at 62,440 MT, a decline of 6,790 MT(9.81%) over the previous year’s final estimate of 69,230 MT. In Tamil Nadu, the Post Blossom forecast for 2016-17 is placed at 17,560 MT which is a marginal increase of 265 MT (1.53%) as against the previous year’s final estimated crop of 17,295 MT. In Non-Traditional areas of Andhra Pradesh and Orissa as well as in North Eastern Region, the post-blossom forecast is placed at 10,655 MT as against previous final estimate of 9,955 MT. The higher forecast has come mainly from Andhra Pradesh due to increase in bearing area.

COFFEE STATISTICS Commercial plantations of coffee started in India during the 18th century. Over the years, the Indian coffee industry has earned a distinct identity on the coffee map of the world. India is the only country in the world where all coffees are grown under a ‘well-defined two-tier

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UPWARD TREND other beans. Restaurants and retailers in India would then import such products to serve or sell to their own customers.

As ground coffee started to enter the marketplace, some customers had no idea how to brew it, and tried to dissolve the grounds in hot water as if they were making instant coffee.

shade canopy of evergreen leguminous trees’. India is today home to 16 unique varieties of coffees sourced from 13 distinct coffee growing regions; most of them in the southern part of the country.

The different varieties of Indian coffees are well suited for cappuccinos and espressos alike and have no parallel in any other coffee growing nation globally.

India’s coffee regions are one of the 25 biodiversity hotspots in the world.

No.of Holdings India’s MY 2015/16 coffee crop (Oct/ Sep) is forecast at 5.2 million 60 kg bags as favorable blossom showers boosted the crop yield prospects of both Arabica and Robusta. While exports in 2014/15 have been sluggish, 2015/16 exports are forecast higher at 5 million 60 kg bags.

Domestic consumption shows signs of marginal improvement on a low per capita basis.

Exports India exports coffee to over 45 countries.

The total coffee exports from the country stood at 277,696 MT in 201516 (provisional based on export permits from April 1, 2015 to February 29, 2016) against the target of 265,000 MT, fetching a value of Rs 164,187/tonne.

Export earnings have increased from Rs 1050.36 crore (US$ 177.26 million) in 2001-02 to Rs 4,559.42 crore (US$ 699.67 million) in 2015-16 (provisional based on export permits from April 1, 2015 to February 29, 2016), growing at a CAGR of 11.05% during the period. Italy was the largest export market for Indian coffee, importing 59,968 MT (21.1% of India’s total exports) in 2014-15. It was followed by Germany (26,190 MT), Russian Federation (22,460 MT), Turkey (15,878 MT) and Belgium (12,209 MT).

Significantly, value added coffee exports have improved their share to reach 95,481 MT in 2014-15 (from October 1, 2014 to September 30, 2015).

Re-Importing Our Exports In the past, even the restaurants that served filter coffee tended to import the beans from Europe, resulting in a brew that was anything but fresh. Because coffee was seen as an export crop only, an absurd situation arose in which high-quality Indian beans were sold to European companies such as Illy, who would process them and blend them with

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These days, entrepreneurs are starting to change all of that. A number of different coffee house chains both home-grown and foreign have popped up in cities all over India. Café Coffee Day got the ball rolling in 1996, and there are now over 1500 locations across the entire country.

Chains like Barista and Brewberrys were not far behind, and more recently international chains such as Costa and Starbucks have joined the scene.

Indian Coffee Marketing System Common marketing practices include: 1) selling to exporters through an agent; 2) storing at a curing plant before selling; 3) selling at auctions; and 4) exporting directly. Small holders typically sell their parchment coffee (or dry cherry) to exporters through export agents and consolidators. The agent takes the coffee beans to the curing factory, where they are checked for quality against the standards of the destination country. Storing the coffee at a curing plant allows the coffee grower to retain ownership of the coffee before selling it in order to take advantage of price movements. Larger producers typically sell at auctions organized by the Indian Coffee Traders’ Association or export directly.

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29 www.agronfoodprocessing.com Domestic market While coffee in India has traditionally been an exportoriented commodity, coffee planters in India are finding significant traction in the domestic market as well. India’s domestic coffee consumption has increased steadily from around 50,000 MT in 1998 to 115,000 MT in 2011 (provisional estimates), registering a CAGR of 6.09%.

This has led to the setting up of a number of international and Indian coffee retail chains in the country in recent years like Lavazza, Café Coffee Day, Costa, Gloria Jean’s Coffee, Coffee Bean & Tea Leaf; and Starbucks in a 50:50 JV with Tata Global Beverages.

Besides viewing India as a market, these chains are also recognising the fine quality and value proposition that is characteristic to India’s coffee plantations; thanks to a rich legacy that spans more than four centuries. Consequently, they are also looking to develop a deeper and sustainable sourcing relationship with Indian coffee growers. India is witnessing a dramatic evolution of the coffee consuming culture across the Indian market.

The ecosystem from the farm to the cup is evolving at a rapid pace to address this cultural shift; an evolution that is getting further catalysed by the entry of international players like Starbucks and Lavazza; who would look to leverage India as a market as well as a sourcing base.

New Domestic Markets For farmers, this recent domestic demand for coffee offers hope of expansion and increased profit. Companies such as TheIndianBean.com are buying and roasting Indian coffees especially for the domestic market, appealing to India’s growing middle class. Their website also educates users about brewing techniques. Starbucks in India also uses 100 percent Indian-grown beans in its espresso-based drinks. In the past ten years, per capita consumption of coffee in India has increased 40%.

Beginning in the 1990s, coffee growers stopped focusing just on maximizing yields and have worked to improve

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UPWARD TREND

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IMPORTED FOOD distribution pattern of the rains in the last decade, the elevation at which Arabica is grown is pushing the cultivation much higher. More than 60 percent of the labor working at the estates is contracted during the harvesting season.

of the beans it produces, but local consumption is on the rise.

Café chains have also introduced consumers to coffees from around the world. Beans from South and Central America as well as East Africa are finding their way into the Indian market as coffee drinkers start to crave more variety. Cold coffee-based sodas and other drinks are now available canned and coffeeflavoured ice cream is becoming more commonplace. Across the board, coffee is becoming a more familiar flavour.

But if you’re a tea drinker, don’t worry!

It doesn’t seem like India’s favorite drink is going to be displaced any time soon.

Per capita, Indians still drink more than 8 times as much tea as coffee. Most of the coffee farmers in the country have never tasted coffee (with the exception of instant) but continue to start their day with a hot cup of tea as their parents and grandparents did before them. Coffee and the café scene are still a bit of an urban, middle-class niche.

India Coffee Types Dominated by Robusta The Arabica plants are self-pollinating and are typically grown at higher elevation under rain-fed conditions. The plants are grown under shade to prevent large variation in soil temperature and moisture levels and protect the plants in case of heavy rainfalls. In India, there is a

two-tier shade for Arabica crop.

The higher canopy shade (30-40 feet) is mostly evergreen trees such as Indian rosewood / jackfruit while Dadap / Silver oak are used for the lower canopy shade (15-20 feet). The leaf litter from these trees acts as soil cover and prevents the direct impact of rain water and prevents soil erosion.

The planting space in Arabica crop is 6 feet by 6 feet with an average of 3,000 plants per hectare. The Robusta crop planting space is 10 feet by 10 feet with about 460 plants per hectare. As Arabica is a deep rooted plant, it is able to sustain itself during drought conditions, but Robusta, with its shallow roots, requires irrigation during the season.

There has been a shift from Arabica to Robusta plantations due to the susceptibility of Arabica crop to stem borer pest and leaf rust issue. With the changes in the

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Challenges Logistics is one of the biggest challenges faced by coffee retailers. Huge cost involved in supply chain restricts expansion of many coffee brands and considering that there?s a huge investment setting a new production unit, seems an expensive affair. Location plays a very important role in steering the business towards profitability. High rentals are also one among the many challenges faced by them. Brands are focusing more on making coffee culture a profitable business rather than increase the counts.

Indian and International coffee chains should be able to cater to the local flavors. With the existing competition one needs to incorporate specific regional preferences in their menu. While coffee chains operating in the country are taking pro-active steps to change the perception and overcome the challenges, at the same time somewhere, someone is enjoying their cup of cappuccino and thanking all the coffee retailers for making coffee a stress buster / pick me up /wake me up drink.

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HEALTH & SNACKS

Snack from Hunger Satisfaction to Health Benefits I Glenes Bothelo

ndian snacks including savoury and namkeen sector is one of the fastest growing sectors of Indian food industry. Indians have been habitual of consuming snacks between the meals since ages but in the last 2-3 decades the habit has remained same but modern snacking has taken place of traditional snacking. All kinds of namkeen, chips and daals have been served to the Indian consumers in best quality packing with world’s most cost effective pricing. Trend of healthy snacking is also picking up and new verticals within snacks are adding up on Indian living room tables like roasted dry foods. Snacks in India include readyto-eat mixes, chips, biscuits, bakery products, namkeen and other light processed eatables are the most popular modern foods presently. As per record with the ministry of food processing, the value of snacks industry is about Rs. 100 billion with over 4,00,000 tonnes in terms of volume. In this huge snacks industry, the dominance of unorganised players is more in proportion to the organised segment.

Nielsen’s retail audit states that the large volume of sales is due to preference of ethnic food and the perception of valuefor-money. The Indian snacks industry is growing exceptionally well and looks to cross over trillion-dollar market. In recent years, this industry has grown rapidly with the use of highly advanced technological machinery and increase in the rate of healthy snacks consumption.

With technological advancement in the industry, manufacturers use automated

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machinery for maximum and effective production.

With many new players entering the market at timely intervals, the scenario of Indian snacks industry is set to change in years to come. Anoop Agrawal, Proprietor of Bansal Group said, today Bansal Group which is a health awareness based firm manufacturing traditional products in a modernised way.

Dealing with manufacture of high class roasted snacks like roasted grams, wheat, moong, maize, peanuts. Quality of products is important than the quantity of production. it is an open and highly competitive market. New players are entering the market and trying to establish themselves has helped change the scenario over the years. For Celeste Zanotto, Sales Manger from TECALIT the growth is a positive sign for all the snacks manufacturers. He said, Indian snacks industry is very good as the basic ingredient for the snacks consumed is wheat, corn, and cereals.

The consumption is increasing which is a positive sign for manufacturers who with the help of automation have made the operation easy and smooth.

The highly competitive snacks industry today gives the market players the opportunity to play a healthy competitive race with the various brands. Ajay

32 www.agronfoodprocessing.com Hemnani- Director of Pickwick Hygiene Products Pvt Ltd comments that, the snacks industry is getting highly competitive and still there is a huge opportunity of tremendous growth in this sector. “With Liberalisation policies of the government, that allows different types of products to enter the Indian market from different parts of the globe. This is great move as it is consumers’ choice to choose from the wide gamut of products available in the market.” was founded in Singapore in 1963, known for its quality and innovative products, the 53-year old business, has grown from a small peanut business to Asia’s leading brand. The products of Tong Garden ranges from variety and flavours of nuts, to dried fruits with different mixes, confectionaries, energy bars etc. It continues to rank at the top in Southeast Asian markets when it comes to nut products and snacks. Tong Garden’s products are found in all major supermarkets, convenient stores, wholesales, minimarts and petrol kiosk outlets in the ASEAN region, India, and China.

Their plants are located at Thailand and Malaysia. The next plant is coming up at Ahmedabad, Gujarat in India.

based on the social demographic changes in the market. If you see in India, there is about 250 million households, out of which each household will have average 4-8 individuals and so with organisational trends are taking in at a fast rate, metro cities are getting bigger, working mothers, and so convenience is become the word of the day. Consumers want affordability, ready-to-eat and so the trick is to give them a product that not only satisfies their need (food craving) but also is healthy.

Many companies use this trick”. Hence today many players in the industry are working on to provide the best quality health snacks that refreshes your mood and gives enjoyable experience.

India is a country with immense potential for growth in this segment, keeping in mind the huge population, eating habits and purchasing power. In recent years, there has been significant changes in the snacks industry with investments and collaborations of different companies.

Celeste Zanotto says that, “We look forward to invest in this country – India, because there is huge opportunity and potential to create successful market.

Also, we wish to increase our participation in food fairs, exhibition and so on.”

Adding that the companies have invested in high capacity machinery for maximum production output to cater to the growing market demand.

Tong Garden Food Marketing India Pvt. Ltd The company’s National Sales Manager, Rajesh Nagur believes that this generation is more concerned about health and staying fit, hence their products caters to that segment that eat healthy snacks. The busy hectic schedule of the people is to be partially blamed for rise in the consumption pattern of snacks.

With hardly any time to cook, housewives and women prefer healthy snack items.

Agrawal is of the view that very soon Indians shall follow the Western standard of living, as they are very health-conscious.

Also, Celeste Zannotto clearly agrees that consumers have changed their preference from fast-foods to heathier options. “We are glad to make healthy snacks using certain ingredients that are beneficial for consumers.” Hemnani adds, “I think it is

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HEALTH & SNACKS

The growth in this sector provides a boost to many players who foresee a wide market to be explored. Ajay Hemnani indicates that hygiene should always be maintained since all products must be well-packed and structured. Another factor is consistency, with the utmost use of modern technology there is quick production because of the increase in consumers’ demand. For Agrawal, the snacks industry hasn’t changed much. He has not seen any positive change in recent years. “The snacks industry is mediocre”.

New plans and initiatives When a business firm grows in volume TECALIT provides high quality facilities and manufacturing equipment for Pasta and snacks industry around the world and contributes to the success of its customers. Since 1984, TECALIT has always been a competent partner, reliable, complete, and is a reference point for the customers of the entire sector. TECALIT specializes in the design, manufacture, supply, and commissioning of pasta thus achieving the goal of developing new cutting-edge technologies, effective and efficient, in the service guest. It provides lines to produce all types of dry pasta, the short pasta, to the long pasta

33 www.agronfoodprocessing.com and sales profit, they eventually go in for expansion. Some even create innovative strategies to capture target audience.

Celeste Zanotto, Sales Manager of TECALIT, the pasta & snacks equipment manufacturing company said regarding plans for the industry, “We manufacture equipment for the food and snacks industry and wheat has a gluten ingredient, we wish to make snacks gluten-free.” .

Some players like Pickwick are open to ideas and suggestions by their clients and the associated people. The market share is being occupied by some leading companies who are facing tough competition. Hemnani gladly welcomes any idea or suggestion that will benefit the snacks industry. “We are looking at items that are niche, big players are getting bigger and eating up the market share.

Hence the search is on for new ideas and suggestions given by our consumers, distributors, and retailers.” Agrawal adds in to say that “FSSAI should consider initiatives that are beneficial for everyone – big, medium and small companies.”

Any move by FSSAI in the interests of this industry is welcome.

Food safety and adulteration When it comes to food safety, Food Safety and Standards Authority of India (FSSAI) is the regulatory body that monitors the food industry. It becomes very important for all the manufacturers and the allied segments to maintain the hygiene aspect in the product. Food items are those products meant for human consumption. Nagur confidently says that, “our products are a premium product This company has the right expertise in making food items like khakhra, papad, mathiya, pickle and other recipes. Products like chikki, and sonpapdi are in the pipeline to enter the market. After satisfying Gujarat and Maharashtra customers, the company is moving to capture the rest of the Indian and overseas market.

Pickwick Hygienic are leading manufacturers and suppliers of an elaborate range of delicious and hygienically packed cream wafer biscuits and wafer rolls that are sure to entice everyone’s taste buds. They continue to dominate the market by maintaining high standards of quality ever since their inception.

Product quality, regularity of supply and value of commitment are the hallmarks of this company. and are available only in limited stores.

The packaging quality is such that the product cannot be adulterated.” Hiren Khakhrawala of Shanta G Foods, well-known Gujarat-based Khakhra manufacturer strictly condemns food adulteration as consumption of these products will put consumers’ lives at risk.

“Adulterated food suppliers need to be dealt strictly and government should give stringent punishment to the wrongdoers as the consumers’ health is at stake after consumption of such foods.”

Providing good quality food products to the customers should be the ultimate motive of all the players in this industry.

In every company, there are teams that look after the hygiene and quality aspects of the product. Hygiene is an important factor that needs special attention as Indian snacks industry is lacking adversely. It needs stringent measures that must be followed by all. Zanotto is of the view that consumers should be made aware of how snacks are manufactured and given accurate information about the ingredients used in snacks.

For food safety, HACCP is the best method adopted and to check for any adulteration in the product says Agarwal.

The food safety laws should be applicable to one and all. The government must make sure that the labour staff follows the guidelines given by their employers. The food safety officers hold the companies responsible because of the labour’s negligent attitude towards work. “We are greatly inconvenienced as neither the food safety inspectors nor the labour listens to

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HEALTH & SNACKS us. Better labour control policies have to be formulated and there should be a clear stand on this issue by the government”, he added. Everyone should abide by the guidelines as per HACCP and FSSAI, or else the quality of the product gets compromised in the long-run.

In years to come, there will be more consolidation and peak competition between several companies in the market.

Even cottage industries in places like Gujarat, Maharashtra, Hyderabad will have to adopt the norms of FSSAI. They will have to comply in providing the nutritional value information of the product, proper labelling and the rest.

Hemnani elaborated on the methods adopted by Pickwick to check adulteration.

“We have a very stringent process right from farm support to supplier till the endretailer. As per the HACCP guidelines, Pickwick has the best traceability measures. All our suppliers must be well certified, before the goods arrive in the market undergoing a thorough check.

Once it is thoroughly checked, only then it can be ready to dispatch. If any product is found to be defective because of the HACCP traceability requirement, quickly we will pinpoint the batch number, city and the retailer.”

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HEALTH & SNACKS convergence will be there but it is not as fast as it should be”. Agrawal said that roasted nuts are a healthy option, and he has always focused on the qualitative aspect of his brand than quantity.

Technological scenario With the increase in the market demand, there will be a high demand for the machinery required to manufacture snacks and other food products. The industry has made efforts for upgradation in design and productivity of machine tools in the last few years. The industry upgrades many old designs or machine tools and the new machine designs adapt to the specific requirements of the client. Some Indian companies are reluctant to invest in good machinery, they fail to realise that advanced technological machinery will provide maximum and excellent results. Nagur said the technological and machinery department is based in Thailand and due care is taken to ensure that the products are manufactured in extremely hygienic conditions.

should provide some subsidy to those in need of such equipment.”

Speaking on the same lines, Hemnani said that technological machinery currently being used is core packaging, core manufacturing from Indonesia, Europe.

The latest and modern technology used by this industry is automated machines.

But small and medium sized companies do not have enough funds to purchase the machines that are costly. Agrawal voiced his opinion saying, “automation has changed the entire functioning of this industry and for my product – roasted nuts and there are automatic machines available at a very high cost. The medium-sized companies cannot afford expensive machinery; the government

To establish and create a brand name in the market, it takes a lot of innovative marketing strategies and creative minds.

One needs to understand the market trend and give the desired products.

Healthy snacks consumption With the trend of healthy snacks consumption on the rise, there may come a time in future wherein people will only consume snacks and meals could be replaced. Initially just to satisfy hunger, consumers would eat fast-foods, but now with the option of healthy snacks available, the preference is more for the latter. When a company gives its patrons good quality service/products, they will always stay loyal to the brand. Echoing his thoughts on similar lines, Nagur stated that “when your products have regular customers because of the brand quality, it is very difficult for the new players to establish themselves in the market.”

Hemnani shares his views on the current healthy snack consumption, we must look at the concept of healthy snacking in a right manner, because there is what we want consumers to try versus what consumers want to try. It seems the industry is more interested in giving out healthier options as they believe that should be the trend whereas the consumers say I will accept the trend in my own way. Eventually, the

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Drawbacks/challenges Every sector in this vast food industry has its own positive points as well as drawbacks. The government along with the private sector should work together to overcome the various obstacles faced by the manufacturers and allied segments.

Hemnani feels that the major drawback today are those players in the market that do not comply to the rules and regulations established by the government.

These players with stipulated budget compromise the traceability measures and hygiene manufacturing standards.

This is the biggest challenge as it gives consumers the ill-perception about the industry. “They think all companies want to just make quick money but that’s not the case as many big snacks companies focus on providing healthy and hygienic packed products. Consumers should be educated about these players and the market scenario.” The market price should be stable, further commenting on it, Agrawal said that snack industry’s major problems are packaging (poor shelf life), transportation is costly and improper stability in the market.

A lot of factors need to be considered to stabilise the market price. Once labor charges increase, there is a rare chance that it will reduce. Stability of rates in the market is the need of the hour and the solution to the problem that this industry is facing.

With a CAGR of 15-20 per cent, the Indian snacks industry has immense growth potential providing wide scope of opportunities to entrepreneurs and the rest.

Considering all the above factors and with appropriate investments into this segment, consumers can expect many different healthy snacks options in the next few years.

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DIGTISATION

Click to Brick: Amazon Go Amazon is getting ready to take over the retail industry, replacing labor with technology

Amazon Go stores—a new chain of convenience stores to be rolled out in 2017—is a store with the concept of no floor employees to assist customers, no store greeters, and no cashiers to collect payments. They will all be replaced by technology, which monitors customers entering the store, records what they buy, and ensures that they are charged the appropriate amount.

While the primary driver behind Amazon’s new store concept is to speed the shopping experience by cutting down the long lines usually observed in convenience stores, cutting labor costs is also a factor. Amazon usually operates at razor thin margins, and cutting an employee or two can make the difference between making and losing money.

Amazon’s announcement comes shortly after McDonald’s announced that it would be replacing cashiers with ordering kiosks. McDonald’s is also another company that operates at low margins; at least its franchises are, as the fast food market is highly competitive. The trend is expected to accelerate, completely eliminating the need for cashiers and other dispensable employees.

A

mazon Go convenience store Amazon Go shows that the company has broken conventional supermarket wisdom and that its foray into food is one traditional retailers should fear -- for two reasons.

The first reason is that Amazon knows how to communicate. “Just walk out” says it all! It’s simple, straightforward and easy to understand for shoppers, and clearly underscores the benefits: no lines; no crabby cashiers; no swiping

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your credit card; no bagging. The grocery industry has a tendency to name and describe complex technologies in a way that confuses – Amazon’s language breaks through all that.

The second reason, of course, is the

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technology itself (new thinking) using computer vision, deep-learning algorithms, sensor fusion and machine learning, according to the video. Grocery store chains have talked about shoppers being able to bypass the checkout for decades. IBM and others have been pushing for RFID chips (old thinking) to be added to individual packages to allow that to happen once the price of the chip fell below a half a cent; critics have debated the cost and the potential for personal information breeches. Both of these issues have delayed the technology from becoming main stream. In fact, 50% of retailers with revenue greater than $1 billion say that mobile technology is moving too fast to keep up, according to RSR Research.

DIGTISATION

Amazon’s market share in the grocery segment is only around 1% currently, while groceries account for nearly 20% of consumer spending in the U.S. According to the Food Marketing Institute, the average U.S. consumer spends nearly $107 per week on grocery shopping, or around $5,500 per year; higher than the annual spend of an average Amazon Prime customer. The company has opened the first Amazon Go store in beta to employees, and will open it to the public in 2017. If Amazon is able to expand this format quickly, groceries can be a huge growth driver for the company in the long term.

for purchase of groceries online, most consumers prefer to purchase groceries at a store since they like to pick the produce themselves. Morgan Stanley’s research shows that 67% of consumers who have never shopped for groceries online have not done so because they want to select produce themselves. Amazon Go appears to be Amazon’s master stroke in resolving this concern. As checkout lines dissuade some consumers from visiting brick and mortar stores, while the inability to pick fresh produce prevents them from buying groceries online, Amazon Go addresses both these issues. Consumers can open the Amazon Go app, pick up the items they want, and just leave the store. Their Amazon account will be charged later for the purchases, and they don’t need to check out. While this concept should attract consumers, Amazon’s ability to scale these stores will be a key factor in driving grocery sales growth for the company. Amazon is likely to open 2,000 grocery stores in the next decade, which is just a third of the nearly 5,500 stores Wal-Mart operates in the U.S. While this degree of expansion may not disrupt the grocery market to a great extent, it can ensure that Amazon grabs a significant share of the market. The grocery segment is a $600 billion market in the U.S., and a 10% share in this market would be nearly half of Amazon’s $137 billion in total revenues in 2016.

Scale of Expansion Key for Growth While convenience is the key driver

We believe the grocery space can be the next growth driver for Amazon, and with

Yes we have seen ApplePay, wave-andpay systems, self-checkout, self-scanning with in-store devices and phones, Google Wallet – but none compare to what this Amazon Go technology appears to do.

Clearly a next step for Amazon will be to take the consumer preference data collected and then be able to make recommendations and even offer special pricing to individual shoppers.

This format will provide some of the convenience of e-commerce to consumers who prefer to pick out grocery items personally, which would give Amazon a substantial competitive edge over other players such as Wal-Mart and Target.

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DIGTISATION by eliminating the checkout process entirely. The idea leverages technologies previously synonymous with self-driving cars, including computer vision, sensor fusion and deep learning.

In an industry where insight and agility are key, it's a struggle to support the increased cadence of decision-making and high demand of increasing growth targets.

Amazon Go the company has indicated that it is ready to take on established players in this segment. While Wal-Mart is experimenting with self-driving carts and personal scanners for consumers to offer similar conveniences, Amazon’s ability to scale up Amazon Go stores will be the key factor to watch.

A Whole new concept The new concept has a targeted strategy of eliminating courtesy clerks and instead replacing the labor cost with an app, also called Amazon Go. Here’s how it works: the shopper downloads the app and then while in the store it automatically adds the products they plan to buy to a digital shopping cart; they can then walk out of the building without waiting in a checkout line.

clerks” around the country, however, the new platform is likely to become a source of rental revenue for many shopping center REITs as a means to fill up space and to drive more traffic into their parking lots.

Amazon Go stopped the world in its tracks. The Dec. 5 introduction of Amazon’s revolutionary convenience store looms among the most surprising and compelling retail announcements in recent memory: The Seattle pilot location — which Amazon describes as "roughly 1,800 square feet of retail space that is conveniently compact, so busy customers can get in and out fast" — advances far beyond existing self-checkout systems

The new Amazon stores are much smaller than traditional grocery stores – Amazon says its stores are around 1,800 square feet compared with 45,000 to 60,000 square feet for a traditional grocery store.

However, the smaller stores will definitely take a bite out of the grocery industry as Amazon plans to roll out over 2,000 grocery stores in the next decade. The first store is scheduled to open in Seattle in early 2017.

In other words, Amazon Go’s new model may eliminate the jobs for many “courtesy

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Amazon Go offers c-store staples like milk and bread, along with meals and snacks made by on-site chefs and local suppliers, as well as Amazon Meal Kits.

Shoppers (a segment currently comprised exclusively of Amazon employees) scan a QR-code based mobile application upon entering the store. The e-commerce giant’s Just Walk Out technology then detects when items are removed from or returned to store shelves, tracking purchases in a virtual cart, and totals the final cost when customers exit the premises. The app automatically bills the card saved in the customer’s Amazon account and generates a digital receipt.

The announcement generated headlines throughout the mainstream media, prompted a deluge of think pieces across the tech landscape and captured the imagination of a range of retail experts and analysts. Retail futurist Doug Stephens, author of the forthcoming book "Reengineering Retail: The Future of Selling in a Post-Digital World," said that

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FEATURE STORY But aside from the fact that Amazon is increasingly the clear leader in bricks retail (not volume, but concept, which will drive volume later,) Amazon is already NOW the driver of retail innovation.

Amazon will likewise deploy tablets on the shelves, extending the long tail of the store indefinitely, without adding footage/ inventory to the store.

he already envisioned a world where even self-checkout terminals ultimately give way to "no checkout in the future ... now supports the position."

Fact Amazon Go is nothing less than a game changer. Not because of the reduction of friction at the checkout. That is awesome and one of the reasons consumers will try it, sign in to the app (see Uber) and come back. It’s sort of a red herring. The gamechanging and far-reaching implications are in its computer vision, deep learning algorithms and sensor fusion and this is not one functional technology, but a combination working in concert to get Amazon what they want: More data on physical spending behavior. Information they don’t have about us.

commitment to reinventing physical retail in categories like grocery where the potential of pure-play e-commerce is limited. While some in the industry saw the potential for app-enabled shopping several years ago, Amazon actually put in the four years of work to bring the concept to life.

The Amazon Go concept is viewed as a logical and predictable extension of Amazon’s disruptive strategy. The company has consistently looked for ways to eliminate friction and non-value adding processes in retail, and from a consumer perspective the biggest bugaboo in grocery shopping is the checkout line — so off it goes.

By investing in technology not only as a means to drive speed and efficiencies but to truly re-imagine and redefine the customer experience, Amazon dares to consider what others would be unwilling to consider or would be ridiculed for suggesting.

Amazon Go is a great example of what CX professionals call an “effortless experience” and now that Amazon has once again claimed first-mover advantage, other retail executives should look in the mirror and ask themselves what they have been doing for the last four years.

Amazon is risk-taking, market sharedevouring technology company at its core, with an obsessive focus on delivering differentiated experiences to their customers. With their irreverence to legacy processes and conventions, Amazon is disrupting retail by completely

Think about the possibilities of physical stores being as aware as websites. That web-like data is enormously valuable, and Amazon is far ahead of the game.

The logistics, margins and operational issues will all be worked out and when they strike on the right combination of product, location and tech, you’ll see these scales fast and show up in all the right places. Then Amazon can really start honing the offer to the store and its customers and wallow in all the data that goes along with it.

Amazon Go shows the company’s

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FEATURE STORY consumers would walk into a store and pass a geofence, which would then alert the consumer of stores offering discounts and coupons for various products via their smartphone.

The consumer would buy discounted product and then go home and be happy.

Except, this is exactly how no one shops.

redefining the competitive elements in the industry. They are changing the game and the rules of the game simultaneously.

But there is some uncertainty But many questions remain. For starters, where does Amazon Go fit within the company’s larger brick-and-mortar retail ambitions? How quickly will it scale?

How might the core Just Walk Out technology work across other formats?

What does the elimination of checkout processes mean for store cashiers and other traditional grocery staff positions?

And how do rival retailers compete?

This is what the future of convenience/ self-serve retailing looks like. Transaction friction caused by long checkout lines or malfunctioning self-checkout technology is the bane of shoppers — Amazon Go has the potential to truly solve this problem. However, like all technology, there are concerns. How accurate is the technology? No data capture system is perfect, so understanding accuracy is important. Also, what does it cost to deploy and maintain this technology?

And finally, how secure is it — can the system be hacked or subverted? While many questions will be raised, I believe the benefits to consumers of a system like this will far outweigh risks.

Also the fairy tale has a rogue too…If you change your mind and do not put the item back exactly where it should be, then you will be charged for it. What about those pesky hackers, who will find a way to get you into the store, and with a push of the button, they walk out with a ton of stuff for free, as they figured out how to bypass the checkout on their phone? Maybe this assumption is wrong but such things happen more frequently with technology, and hopefully Amazon has a very secure system to prevent this.

One more thing … what about pricing of the food? Is it going to be on the Whole Foods level, or more in line with conventional supermarket pricing, as yes, price is still a factor, if you want repeat sales for most folks. If in fact the pricing is higher, it had better be super-fresh and delicious, or risk a one and done. These stores will all be in high-income areas, and they will be well received..

Oils and food insight The future of retail for marketers was supposed to be merry and bright: armed with their smartphones,

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This isn't to say that in-store shopping isn't already an online experience. It's just that the idea of locally offering deals to consumers based around a particular item or brand is very old school. With the debut of Amazon.com's Amazon Go, consumers don't have to think about their phones or downloading multiple apps or even picking up a specific brand. By contrast, Amazon's system, which only requires one app download, a smartphone, and an Amazon account, democratizes the playing field and allows consumers to move seamlessly through aAmazon. com's store.

In order for consumer's selected items to be tracked and charged, the company says the store relies on the same technology as self-driving cars. Combining computer vision, or computers that can process images and video, and possibly even dimensional data, to understand what it's looking at, sensor fusion, which is exactly what it sounds like—multiple sensors, each recording different aspects of an object, like its weight or form, contribute to a larger piece of information, and deep learning, in which a computer keeps tabs on all this data over time, the Amazon Go system is much more advanced than most retailers could hope to match.

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UPDATE

Food Processing Industry

Dynamics and Developments Evolution Food processing industry is ‘agriculture plus industry’ and is a bond between ‘farm’ and ‘shelf.’ India is world’s secondlargest producer of food next to China and holds the potential to make it to the first place with continued efforts.

The Indian food processing industry is path that will lead to the enhancement of agricultural economy and this is why it is widely recognised as a ‘sunrise industry’.

The industry is a constellation of largescale processed food manufacturing and food chain facilities resulting in the

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generation of employment and export earnings. Food processing embroils any type of value addition to agricultural & horticultural produce and also includes processes such as grading, sorting and packaging which increase shelf life of food products. This industry offers

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dynamic and important linkages and collaborations between industry and agriculture. India’s position in the world in this regard can be seen as Largest producer of milk in the world; Largest livestock population; Second-largest producer of fruits and vegetables; Thirdlargest producer of food grain; and Thirdlargest producer of fish.

Earlier it was claimed that agriculture was the back bone of Indian economy. But today the equation has changed with both agriculture and food processing industry going under important evolution. At the present, both are regarded as active and equal partners in the process of economic development and now India’s agriculture has been transformed from existence

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UPDATE

level to commercial level. India’s rich agricultural base has potential to add significant value to the food processing sector.

Food processing industryis now regarded as vital and significant in India because of its linkages in the development of many interrelated variables. The significance

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UPDATE investment. Indian food service industry is expected to reach US$ 78 billion by 2018.

of food industries lies in the fact that they create employment opportunities, mobilize resources from rural sector, promote agricultural production, make use of local resources, add value to the farm products, improve quality, achieve efficient marketing, combat rural-urban migration and promote industrializationin an agricultural economy. The availability of raw material, changing lifestyle and relaxation in regulatory policies is fuelling the growth of this sector.

Today India needs to be industrially advanced to become the biggest food producer and provider. Though agriculture has its own importance and provides the basic necessities of life but it is not enough for making a country take the path to progress- but with food industry definitely things will happen and change.

Outline The Indian food sector has emerged as a high-growth and high-profit sector due to its enormous potential for value addition, particularly within the food processing industry. It is evolving and has crafted an important space for itself in the Indian economy by increasing its contribution to world food trade every year..

The food industry is valued at US$ 39.71 billion and is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65.4

billion by 2018, while Food and grocery account for around 31 per cent of India’s consumption basket. Today this industry accounts for about 32 per cent of the country’s total food market, The Government of India has been instrumental in the growth and development of the food processing industry. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations; industrial licenses and 100 per cent export oriented units.

Food industry market The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial

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The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. Food has also been one of the largest segments in India's retail sector, which was valued at US$ 490 billion in 2013. The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 894.98 billion) by 2020.

The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent.

India's organic food market is expected to increase by three times by 2020.

The online food ordering business in India is in its nascent stage, but witnessing exponential growth. The organised food business in India is worth US$ 48 billion, of which food delivery is valued at US$ 15 billion. With online food delivery players like FoodPanda, Zomato, TinyOwl and Swiggy building scale through partnerships, the organised food business has a huge potential and a promising future.

Food processing industry is way up now producing ready-to-eat food, beverages, processed and frozen fruit and vegetable products, and marine and meat products.

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processing, dairy processing, fisheries sector, grain processing sector and so on. The share of FDI in this industry has increased and this indicates that the government is trying to develop the country as a food processing hub, which is likely to boost the Indian food processing sector because FDI is the major investment which served as a link between investment and saving and ensure the catalyst for the development of the economy particularly a country like India.

Growth drivers Liberalization and the growth of organized retail have made the Indian market more attractive for global players. With a large agricultural sector, abundant livestock and cost competitiveness, India is fast emerging as a sourcing hub of processed food. Favorable economic and cultural transformation and a shift in attitudesand lifestyles have consumers experimenting with different cuisine, tastes and new brands. There is an awareness and concern for wellness and health, for high protein, low-fat, wholegrain, organic food.

Reasons to invest A rich agriculture resource base – India is ranked No. 1 in the world in the production of bananas, mangoes, papayas, chickpea, ginger, okra, whole buffalo, goat milk and buffalo meat. India ranks second in the world in the production of sugarcane, rice, potatoes, wheat, garlic, groundnut (with shells), dry onion, green pea, pumpkin, gourds, cauliflower, tea, tomatoes, lentils, wheat and cow milk.

A total of 127 agro-climatic zones have been identified in India. Attractive fiscal incentives have been instated by central and state governments and these include capital subsidies, tax rebates, depreciation benefits, as well as reduced custom and excise duties for processed food and machinery. The major global players in the food domain are already present in India. 121 cold chain projects are being set up to develop supply chain infrastructure.

An extensive network of food processing training, academic and research institutes spans the country. 42 mega food parks are being set up in public-private partnership at an investment of INR 98 Billion rupees.

The parks have around 1200 developed plots with basic infrastructure enabled that entrepreneurs can lease for the setting up of food processing and ancillary units.

Investments.

The Department of Industrial Policies and

A population of 1.2 Billion people, with the world’s highest youth population – India has 572 Million people under the age of 24. Consumption in India is driven towards packaged and ready-to-eat foods.

India is a global outsourcing hub, with large retailers sourcing from India owing to abundant raw materials, supply and cost advantages. Processed food exports and related products have been raising

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UPDATE Promotion (DIPP) shows that the food processing sector in India has received around US$ 6.82 billion worth of Foreign Direct Investment (FDI) during the period April 2000-March 2016. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also generate employment of nine million person-days.

India's food processing industry is expected to treble in the coming years on the back of higher economic growth and government initiatives like 100 per cent FDI in marketing of food items.

The major investments in Food Industry Poland has also highlighted the keen interest shown by Polish companies looking for opportunities in India to expand collaboration and invest food processing US-based private equity firm KKR & Co LP, plans to invest about Rs 520 crore (US$ 77.38 million) in dairy company Kwality Ltd, which will be used to strengthen its milk procurement infrastructure and increase processing capacity. Another US-based health and wellness group - Henry Ford Health Systems (HFHS), plans to enter India by signing a franchise partnership with Chandigarh-based hospitality and food services firm KWalls Hospitality, and

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UPDATE Processing Industries. The document envisions trebling the size of investment in the processed food sector by increasing the level of processing of perishables from 6 per cent to 20 per cent, value addition from 20 per cent to 35 per cent and share in global food trade from 1.5 per cent to 3 per cent by 2015.

According to the Ministry, an investment of Rs 100,000 crore (US$ 14.67 billion) would be required in 2015 to achieve these targets. The Government of India has also relaxed foreign direct investment (FDI) norms for the sector, allowing up to 100 per cent FDI in food product e-commerce through automatic route.

set up 'Culinary Wellness' branded stores across the country.

Mondelez International, has new manufacturing plant in Andhra Pradesh set up for Rs 1,265 crore (US$ 190 million), with an annual production capacity of 250,000 tonnes, while Di Bella, the Australia-based coffee chain, plans to invest Rs 67 crore (US$ 10 million) for setting up around 20 new outlets in Mumbai, besides entering Delhi and Bangalore by 2017.

And ITC Limited plans to invest Rs 800 crore (US$ 117.4 million) to set up a world-class food processing facility in Medak, a district located in Telangana.

The company has also formulated plans to enter the dairy market.

Private Equity (PE) firm India Value Fund Advisors (IVFA) plans to invest around US$ 100-150 million in the food business in India over the next two years.

Pure Circle, a Malaysia-based natural sweetener producer, plans to invest around Rs 1,300 crore (US$ 200 million) in India to set up a manufacturing plant and make the country its regional production and export hub in the next five years.

Swiggy, a food delivery start-up owned

by Bundl Technologies Private Limited, has raised Rs 230.34 crore (US$ 33.80 million) in a Series C funding round, with its existing investors SAIF Partners, Accel Partners, Norwest Venture Partners and Apoletto Asia Ltd contributing 79 per cent of the new funds raised. Whereas Zomato, a restaurant search and discovery platform, has raised US$ 60 million from Singapore government-owned investment company Temasek, along with existing investor Vy Capital, in order to explore new business verticals.

Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as 'Amul', plans to invest Rs 5,000 crore (US$ 733.6 million) to establish ten new processing plants as well as expand the current capacity to touch 32 million litres per day (MLPD) capacity by 2020.

Government role In order to promote food processing industries, increase level of processing and exploit the potential of domestic and international market for processed food products, Vision Document-2015 was prepared by the Ministry of Food

This year American doughnut chain Dunkin' Donuts has tied up with local online grocery delivery platform Grofers for home-delivery of its packaged and freshly made products.

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Some of the major initiatives taken by the Government of India to improve the food processing sector in India are allocation of Rs 1,500 crore (US$ 225.7 million) and announced various measures under the Merchandise Exports from India Scheme (MEIS), including setting up of agencies for aquaculture and fisheries in coastal states and export incentives for marine products.

Harsimrat Kaur Badal, Union Minister for Food Processing Industries, has inaugurated the first of its kind Rs 136 crore (US$ 20 million) mega international food park at DabwalaKalan, Punjab. The Government of India has approved the setting up of five numbers of Mega Food Parks in the states of Bihar, Maharashtra, Himachal Pradesh and Chhattisgarh. The Government plans to set up 42 such mega food parks across the country in next three to four years.

Badal has also expressed confidence that the decision to allow 100 per cent Foreign Direct Investment (FDI) in multi-brand retail with 100 per cent local sourcing condition, will act as a catalyst for the food processing sector, thereby controlling inflation, uplifting the condition of farmers, and creating more jobs in the country. The Ministry of Food Processing Industries announced a scheme for Human Resource Development (HRD) in the food processing sector. The HRD scheme is being implemented through State Governments under the National

45 www.agronfoodprocessing.com Mission on Food Processing.

The Ministry of Food Processing Industries has taken some new initiatives to develop the food processing sector which will also help to enhance the incomes of farmers and export of agro and processed foods among others. While Spices Board, set up by the Ministry of Commerce to develop and promote Indian spices worldwide, aims spice exports of US$ 3 billion by 2017.

The Food Safety and Standards Authority of India (FSSAI) has issued new rules for importing products, to address concerns over the entry of sub-standard items and simplify the process by setting shelf-life norms and relaxing labelling guidelines.

Also FSSAI has issued the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011 and the Food Safety and Standards (Contaminants, Toxins and Residues) Regulations, 2011 which prescribe the quality and safety standards, respectively for food products.

FSSAI has rolled out a major scheme for strengthening of Food Testing Infrastructure in the country at an estimated cost of Rs 482 crore, in the light of the recent observations by High Court, Mumbai, regarding the urgent need to upgrade food testing Laboratories in India. It has similarly come up with fortification standards for packaged food products such as cereals and biscuits. Fortification means deliberately increasing the content of essential micronutrients such as iron, Vitamin A, Vitamin D, Iodine, etc., in a food product so as to improve its nutritional quality with minimal risk to health.

In the Budget 2015-16, a corpus of Rs. 2,000 crore (US$ 293.44 million) was created under National Bank for Agriculture and Rural Development (NABARD) to provide cheaper credit to food processing industry. Excise duty on plant and machinery for packaging and processing has been brought down to six per cent from 10 per cent.

Union Budget 2016-17 has proposed 100 per cent FDI through FIPB (Foreign Investment Promotion Board) route in marketing of food products produced and manufactured in India. With 100 per cent FDI in marketing of food products produced and manufactured in India, it is expected that the farmers will also get better prices from the heavy reduction in post-harvest losses. It will also result in the strengthening of the back-end infrastructure and lead to direct purchase by the retailers.

Government of India plans to allow two Indian dairy companies, Parag Milk Foods and Schreiber Dynamix Dairies, to export milk products to Russia for six months, after these companies got approval for their products by Russian inspection authorities.

Future So the need of the hour is that concentrated efforts of the government should be towards the development of the food processing industry, as the challenges for the food processing sector are diverse and demanding and need to be addressed on several fronts to derive maximum market benefits. The government must address some significant constraints such as exploration of untapped potential of industry; value-addition in unprocessed categories of food must be raised for the domestic and international demand; investment in supply chain in order to improve costs; tighten-supplies-andminimise-waste must be adopted; and thus the focus towards food processing industry as a priority sector must ensure policies to support investment in this

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UPDATE sector and attract more FDI inflows.

Indian food market is ready for innovative food products, processes and investments and food processing ministry is facilitating ease of doing business and creating investor friendly policies and schemes to give a boost to the sector.

The interest expressed by the overseas industry is a testimony to the fact that the world was looking at the Indian food industry as the food factory to the globe.

The food processing ministry proposes to organize the World Food Summit in 2017, that shall act as a single consolidated platform for investors, technology solution providers, processors, manufacturers and all other relevant national and international stakeholders.

The government's decision to permit 100 per cent FDI in trading, including through e-commerce, in respect of food products manufactured or produced in India is expected to provide a major impetus to investments, employment and job creation in the food processing sector.

This will offer the advantage of improving price realisation for the farmers by reducing intermediaries and strengthening supply chain through its forward and backward linkages, in addition to reducing wastages of the perishables.

Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry offers several benefits. It would enable adherence to stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to face global competition, enhance product acceptance by overseas buyers and keep the industry technologically abreast of international best practices.

NUTRITION

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Food fortification:

Govt new initiatives to advance

India’s nutrition goals A bout 70 per cent of pre-school children and over 50 per cent of women suffer from anemia due to iron deficiency. Food fortification is a simple, proven, cost-effective and complementary strategy that has been used across the globe to effectively prevent vitamin and mineral deficiencies.

food companies and is now making draft standards for packaged food items and the same will be released in the next two months.

It is reassuring to see that the governments’ new initiatives to advance India’s nutrition goals... The foundation is committed to

Fortification means deliberately increasing the content of essential micronutrients in food to improve its quality and big food companies like Cargill, Future group and Tata Global Beverages have shown interest in launching fortified food items to fight malnutrition..

Even the Food Safety and Standards Authority of India (FSSAI), is supporting it and has set standards for fortification of milk, salt, edible oil, wheat flour and rice as well as logo to be used by the

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working with the government and other partners to help scale.

Mother Dairy is fortifying its token milk.

They are the first to use logo. Cargill will launch its fortified edible oil. Tata Beverages has shown interest in fortified tea. The Future group is setting up a food park near Bengaluru and is "very keen on fortification and several states are at advanced stages of adopting fortified foods in government programmes.

FSSAI has set standards for fortification of salt with iodine and iron; of vegetable oil and milk with Vitamin A and D; wheat

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flour and rice with iron, folic acid, zinc, vitamin B12, vitamin A and some other micronutrients.

Food Fortification-Why do we need it?

Micro-nutrient deficiencies affect not only the poor. Less obvious but nonetheless important are the effects of today’s lifestyles in the developed world on nutritional status. There are increased food choices, yes, but low micro-nutrient densities. The hectic pace of life can lead to inadequacies in the diet, so that even in well-endowed societies people are increasingly looking to fortified foods to make up the deficiencies. Food fortification has for one reason or the other emerged as a non- complicated way to improve the nutritional value of a diet.

It has been applied for decades to improve the nutritional status of target populations in various countries by adding value to simple, affordable staple foods. Indeed, in many countries fortification of staples such as wheat flour is mandatory, to replace nutrients lost through food processing or to reduce the prevalence of identified deficiencies.

Historically food fortification, such as iodized salt or vitamin D-fortified milk, has served as a public health measure to address population-wide nutrient deficiencies. Now, there are calciumand vitamin D-fortified juices, breads fortified with omega-3 fatty acids, and vegetable-oil spreads with plant sterols available for health-conscious consumers searching for foods with additional health benefits. These types of foods contain added nutrients and ingredients that may promote or support overall health and wellness in a variety of ways across many

To keep up in today’s busy world, people are multitasking, and when it comes to keeping up with their daily nutritional needs, they expect their foods to multitask as well. Today, many people can identify a specific food and/or food component and its associated health benefit.

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NUTRITION

different body systems including heart, bone, digestive, eye and brain; weight management; and increased energy and immune health, among others. ‘’Ideally, foods not only must meet consumer needs and preferences but also address nutrition, regulatory, safety and technical constraints’’ What Is It? Food fortification is primarily the addition of one or more essential nutrients (for example, iron, vitamin A, folic acid,

48 www.agronfoodprocessing.com they are vulnerable to long-term health problems and raise societal and public healthcare costs and potentially depress the country’s productivity.

demonstrated deficiency of one or more nutrients in the population or specific population groups. It is a safe, effective way to improve public health and has been used around the world since the 1920s. Commonly fortified foods include staple products such as salt, maize flour, wheat flour, sugar, vegetable oil and rice.

Is It Necessary?

Shortfalls in nutrient intakes could result from changing lifestyles. Even those in affluent communities may not achieve recommended micronutrient intakes without fortification of the food supply.

Consumption of vegetables, fruits, whole grains, milk and milk products may be lower than recommended. This makes some micronutrients – potassium, dietary fibre, calcium, and vitamin D – low enough to be a public health issue. Other vitamins of concern include iron, folate and vitamin B12.

As per World Health Organization (WHO), about two billion people worldwide suffer from micronutrient deficiencies because they are not getting essential daily dietary requirements.

Many diets, especially those of the poor, contain insufficient amounts of these essential vitamins and minerals due to lack of variation and/or consumption of predominantly processed foods. Since most populations in resource-poor settings do not have access to adequate quantities of fruits, vegetables and meats, where micronutrients are abundant,

Considering that providing vitamin supplements or tablets poses logistical and economic constraints in such resourcepoor settings, food fortification provides a practical and inexpensive alternative.

Diseases such as goiter, rickets, beriberi and pellagra were once common health problems in the early 20th century. Today, these diseases are rarely seen due to a series of food-fortification programmes that have helped stave off a multitude of nutrient deficiencies. According to the World Health Organization and the Food and Agriculture Organization of the United Nations, food fortification is the

NUTRITION and death during childbirth. A lack of these important vitamins and minerals also has a profound impact on the body’s immune system. Beyond the enormous health implications, micronutrient malnutrition has a significant economic impact.

Fortification Is Not Enrichment ‘Fortification’ and ‘enrichment’ are terms used to describe the addition of nutrients to foods, but are two separate concepts. Enrichment refers to the restoration of nutrients lost during the handling, processing, or storage of foods, and levels are generally based on Food and Drug Administration (FDA) standards of identity. Fortification refers to the voluntary addition of nutrients at levels beyond those naturally occurring in the food. Globally, the decision to

Iodine in Salt – the First Fortification During the 1921 American Medical Association (AMA) convention, two Ohio doctors presented findings from their clinical trial demonstrating the effectiveness of sodium iodide treatments for the prevention of goitre. It was found that without iodine the body could not properly synthesize thyroid hormones, which often resulted in unsightly neck goitre or in more serious cases, mental retardation.

Iodine deficiency generally occurs in areas where the soil has been depleted of iodine because of flooding, heavy rainfall, or glaciation.

Shortly after the publication of the results, Michigan became the first state to institute a public campaign to provide dietary iodine via salt. An extensive educational campaign that involved schoolteachers, industry as well as medical and public health communities helped increase consumer awareness about, and demand for, iodized salt so that by 1924 iodized salt was commonplace, despite the fact that iodization was never mandatory. Epidemiological studies following the implementation recorded a significant decline in the incidence of goitre, confirming the success of the programme. Most table salt continues to be fortified practice of deliberately increasing content of an essential micronutrient in a food, so as to improve the nutritional quality of the food supply and provide a public health benefit with minimal risk to health.

What Are Micronutrients?

Micronutrients are vitamins and minerals required in small amounts that are essential to our health, development and growth. Proper intake of vitamins and minerals can mean the difference between a healthy, productive life, and a life fraught with illness. Micronutrient deficiencies are the leading cause of mental retardation, preventable blindness,

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fortify products is left to individual food manufacturers. Voluntary fortification is a common practice in many countries.

Many countries including the United States, Canada and Australia require mandatory fortification of certain staple foods with specific nutrient(s) to improve public health, such as the fortification of enriched flour with folic acid to reduce the risk of neural tube birth defects, and also restrict the fortification of foods with certain nutrients such as vitamin D. Fortification in India In India, fortification of salt with iodine (generally called iodization of salt) and

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NUTRITION Nutrition Policy.

• Government of India’s Guidelines and Recommendations Supporting Fortification of Foods to Be Provided under ICDS and MDM Regulatory Support.

The Food Safety and Standards Authority of India (FSSAI), which earlier this month issued draft regulation on allowing food fortification, has decided to soon operationalise these standards even before it issues final notification.

fortification of Vanaspati (hydrogenated fats) with vitamin A is mandatory. The National Anaemia Control Program (started in 1970) distributes iron tablets to children, pregnant and lactating women, and the National Vitamin A Prophylaxis Programme (started in 1971) provides two mega doses of vitamin A to children 9–60 months annually.

As per NFHS-3, the coverage under these programmes is very low. Anaemia continues to threaten the life and wellbeing of a large number of the population, and vitamin A deficiency remains a public health problem. Hence, provisioning of small amounts of micronutrients through fortification of multiple foods that are consumed by various population groups and are either distributed through public funded programmes like public distribution system (PDS), Integrated Child Development Services (ICDS), and Midday Meal (MDM) scheme, and/or sold through the open market commercial channels offers an opportunity to provide micronutrients on a sustained basis.

started more than 50 years ago and has been obligatory in India since 1953.

• Fortification of milk: The department of food, ministry of food and civil supplies, government of India, pioneered and initiated fortification of milk with vitamin A in 1980, by providing technical as well as financial support. Presently, many milk dairy federations/cooperatives, including Mother Dairy, are fortifying milk with vitamin A. Both iodization of salt and fortification of vanaspati are mandated under the law and milk fortification is strongly recommended in the National

Fortification activities in India are: • Iodization of salt: Iodization of salt with potassium iodate started in 1962 in a few districts and has since covered most states and union territories.

• Fortification of vanaspati: Fortification of vanaspati with vitamins A and D

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Fortification is a cost effective and quick way to address malnutrition and the food regulators have issued a draft regulation on fortification of foods and sought public comments. FSSAI has covered five food categories -- wheat flour, rice, milk, edible oil and salt and has set standards for fortification of salt with iodine and iron; of vegetable oil and milk with Vitamin A & D; wheat flour and rice with iron, folic acid, zinc, vitamin B12, vitamin A and some other micronutrients.

The draft enlists standards to encourage production and consumption of fortified foods. The rules also provide for FSSAI’s role in making fortification mandatory.

The regulator will notify final regulations based on comments from stakeholders.

The government is correspondingly examining the option for making

50 www.agronfoodprocessing.com will be done within a year. However, as the food industry is huge and largely unorganised, they will take a much longer time to fortify their food products.

Fortification requires neither changes in existing food patterns, habits nor individual compliance. It is socioculturally acceptable and does not alter the characteristics of the food. It can be introduced quickly and can produce

food fortification mandatory, while emphasising on the need for getting supply side ready for this process. The fortification process could be easily implemented in government programmes like PDS, mid-day meal scheme.

A standard is being set for fortification of foods to provide not only safe but wholesome food. By setting standards, FSSAI would be prescribing minimum and maximum limit of fortification in the five food categories.

FSSAI is likewise likely to come up with fortification standards for packaged food products such as cereals and biscuits.

It is discussing with the industry to bring fortification norms for processed (packaged) food products. It is more of an afterthought.

If a company starts a category of biscuits which is called ‘fortified biscuits’, it is good for the general population only. In America, there is a focus of fortification in packaged food products which are consumed for breakfast, such as cereals.

But In India approach to fortification in packaged foods is going to be a little different than what have been done till date for five products.

The FSSAI is expecting that the fortification of food products, which are consumed in the government programs,

NUTRITION Uttarakhand, Orissa and Chhattisgarh, prior to the universalization of MDM. From the mid-1980s to the mid-1990s, state governments including those of Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Kerala, Delhi and Pondicherry were providing fortified bread as one of the food items for supplementary nutrition under the ICDS programme..

Vitamin D in Milk In the early 20th century, rickets (soft bones and skeletal malformation from incomplete bone growth) was common among underprivileged children living in industrialized cities. Inadequate diet, poor hygiene, and lack of exercise were among the factors believed to play a role in the formation of this disease.

The relationship between diet and rickets was not clearly understood until an English physician conducted the first experimental study on rickets with dogs.

His observations of specific ‘anti-rachitic’ factors found in cod liver oil, butter and whole milk eventually led to the identification, purification and synthesis of vitamin D. Subsequently, the Food and Drug Administration (FDA) established a standard of identity (SOI) for milk which included the optional addition of vitamins A and D. Today, the majority of our milk is fortified with vitamin D. However, additional food sources of vitamin D are limited, so obtaining vitamin D solely through dietary sources can be challenging and many people fall short of their daily requirements for vitamin D.Naturally occurring sources are also limited mostly to oily fish and cod liver oil. Besides milk, select foods such as cereals and orange juice may be fortified with vitamin D. Supplements may also be necessary and are readily available. Because certain brands rather than all items within a food category may be fortified, it may be helpful to check the nutrition facts on food packets. nutritional benefits for populations in a short period of time. It is safe and cost effective, especially if advantage is taken of the existing technology and delivery platforms.

Fortified Foods under Public Funded Programmes Fortified foods like the corn-soya blend (CSB) and Indiamix have been provided as supplementary nutrition for over three decades in the World Food programme- (WFP) and CARE-supported ICDS projects. Fortified biscuits were being provided as a nutritious snack to children (6–11 years) in primary schools in the states of Madhya Pradesh,

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Many state governments including those of Rajasthan, Gujarat, Madhya Pradesh, Punjab and Haryana are providing fortified foods under the ICDS

51 www.agronfoodprocessing.com National Edible Oil Fortification The Government of India is committed to addressing the problem of micronutrient deficiencies and has been running a Vitamin A supplementation programme for children under five years for more than a decade. However, only 25 per cent of children under five years old have received a dose of vitamin A in the six months preceding the nationally representative National Family Health Survey III (2005– 06). Also, there is no programme to cover children above five years, pregnant women, women in post-partum phase, and adults.

To supplement these efforts, Confederation of Indian Industry (CII) collaborated with Global Alliance for Improving Nutrition (GAIN) and Voice and launched an initiative on National Edible Oil Fortification aimed at advocating for oil fortification. The project aims at building consensus around fortification as an industry-led initiative and to generate evidence on the merits of business-led expansion of a fortified edible oil portfolio. The project will entail engagement with various stakeholders (business leaders, technical experts, nutritionists and policymakers) to build consensus on taking forward the agenda of largescale fortification of edible oils. Under the initiative, Voice, CII and GAIN together are organizing Stakeholder Consultation on Oil Fortification workshops across all major cities of India. The workshops began on 18 June 2015 in Jaipur, Rajasthan, and until 22 August 2015, covered 23 cities in 23 states and union territories across India.

Oils and fats, like carbohydrates and proteins, are major components of the human diet. Depending on the source, oils provide not only energy but also the essential fatty acids required for human growth and development. The fat soluble vitamins – vitamins A, D and E –mix uniformly with oils, making them an excellent, costeffective vehicle for fortification with these micronutrients. For example, studies have shown that fortification of cooking oil with vitamin A improves intake amongst vulnerable populations without any increase in cooking-oil consumption. programme, especially for children aged 6–36 months, as take-home ration (THR).

The government of Gujarat is providing fortified wheat flour for preparation of cooked meals under ICDS and MDM. ICDS programmes in West Bengal, Gujarat, Andhra Pradesh and Bihar are providing candies fortified with vitamin A, iron, folic acid and vitamin C to children aged 2–6 years as well as pregnant and lactating women.

The government of West Bengal has been distributing sachets of multiple micronutrient powder or sprinkles to the mothers of children below two years of age at ICDS centres. The supplements are administered with any kind of food given to the children.

What is being done…..

In attempt to take on the nutrition ecosystem and support comprehensive solutions, The Bill and Melinda Gates

Foundation is addressing nutrition in India through their Grand Challenge in Global Health: Achieving Healthy Growth through Agriculture and Nutrition.

This challenge represents some of the best in nutrition innovation as it takes a particularly holistic view of the problem.

The program focuses on solutions that “empower women to prevent [malnutrition] through a virtuous cycle where increasing agricultural productivity improves rural families’ nutrition and healthier smallholder farmers have increased productivity, contributing to economic growth.”

Two of the challenge winners were featured for their programs in micronutrient fortification: Annamalai University & The International Rice

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NUTRITION Research Institute for their work with micronutrient fortification of rice and Amity University for its work with agronomic bio-fortification of food crops.

A third challenge winner, Science for Society, is worth highlighting here at some length for their innovative food treatment process that ensures yearround access to the essential vitamins and minerals in fruit and vegetables. Unlike fortification, which requires external inputs and extensive education, Science for Society’s Domestic Solar Conduction Dryer, takes advantage of the inherent nutritional value of fruits and vegetables to supplement the diet of low-income communities.

Dehydration of fruits and vegetables drastically extends their shelf life, reducing wastage from agricultural harvest and providing year-round access to vitamin rich food. The Solar Conduction Dryer runs without electricity and uses conduction to transfer heat for increased efficiency, reducing processing time by 40%. Despite being at a pilot stage, this initiative demonstrates the potential of technology to exploit locally grown and easily accessible micronutrient sources to supplement local diets without the need for large-scale fortification efforts.

Bringing Fortification Down to the Community Level Micronutrient fortification of foods like salt and flour has been employed by countries around the world to supplement the nutritional value of commonly

52 www.agronfoodprocessing.com Fortification FAQs How safe is fortified food for consumers?

Experiences in countries that are already fortifying show that fortified foods are completely safe for consumers and that the benefits are enormous. The amount of vitamins and minerals added to a specific food is usually set at a proportion of the individual’s daily requirement and is usually less than one-third of the total recommended dietary allowance (RDA). Fortification is always strictly monitored and by implementing stringent quality-control measures, companies can ensure that there is no excessive intake of a specific vitamin or mineral.

What claims is a company allowed to make to market their fortified foods?

Companies can state that their product is fortified or enriched with vitamins and minerals and they can indicate the levels of added micronutrients. In India, Food Safety and Standards Authority of India (FSSAI) has laid down science-based standards for articles of food and issued regulations to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption and for matters connected therewith or incidental thereto.

How does fortification affect the shelf life of a product?

Fortification has no impact on the shelf life of a product. The vitamins and minerals have a shelf life of their own although they do become less active over time.

Does fortification change the appearance, taste, texture and flavour of the food?

No. When deciding on the appropriate premix for food fortification, only those vitamins and minerals are considered, which will not change the appearance, taste, texture and flavour of the food. In some cases encapsulated micronutrients may be used to prevent the interaction of micronutrients with either the atmosphere or with other micronutrients. The concept is based on the fact that the consumer’s buying behaviour should not be affected by the fortification process.

What do companies stand to gain from adopting fortification?

Experience has shown that when a leader in the food industry takes the first step by fortifying food on a voluntary basis, it can result in many other food companies following suit. This voluntary fortification of foods by the industry also gives confidence to governments to consider making the process of certain food products mandatory. In many countries, including India, forward-thinking food companies

consumed foods. India has long understood the importance of fortification, particularly iodine fortification, and India’s Salt Iodization Programme dates

back to the 1950s. It wasn’t until the mid-1980s, though, that commercial entrants introduced branded, iodized salt, with Tata as the pioneer. Other players like Hindustan Unilever Limited were quick to follow and even extended their fortified product range to include iron fortified Atta. The success of commercially fortified products did much to extend the uptake of micronutrients among the general population, but there remained a considerable, mostly rural, population that was not impacted by these nutritious

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NUTRITION additions products.

to

commercially

branded

To combat iron deficiency and Anemia throughout rural Rajasthan, an NGO called Seva Mandir attempted to translate the success of large-scale, corporate fortification efforts to rural communities through a local grain fortification initiative. Recognizing that many rural families consume their own grain, and are thus excluded from the benefits of commercial fortification, Seva Mandir taught local chakkis (millers) to enrich grain and provided them with a “micronutrient premix…diluted with flour” to add to wheat during grinding.

Although innovative in concept, Seva Mandir’s local iron fortification initiative didn’t prove as successful as hoped.

Initial uptake of fortified flour was 60% in targeted villages, but this number dropped to about 30% after one year.

This dramatic decrease in consumption has been attributed largely to the millers, who without proper education may not have consistently fortified grain. Seva Mandir’s experiment demonstrated that though local, community-level fortification initiatives may offer an opportunity to reach those outside of the mainstream commodities market, without proper education and support, such initiatives will not consistently impact nutrition in India.

Can All Foods Be Fortified?

Indiscriminate addition of nutrients to foods and the fortification of fresh produce, meat, poultry, or fish products is not allowed by many countries; fortification of unprocessed foods is prohibited in European countries.

This is meant to help consumers understand the nutritional value of foods from each food group. Also, fortification of some types of foods such as sugars and some snack foods (for example, candies and carbonated beverages) is discouraged, so that consumers are not encouraged to choose fortified foods that are inconsistent with achieving dietary guidelines.

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NUTRITION

Premium packaging

unleash shelf appeal P remium packaging enables manufacturers to lend the air of luxury to non-premium products, which entices consumers visually while enabling them to stick within their grocery budgets. Despite grocery prices continuing to decline, many people still spend less of a percentage of their income on high end groceries. Manufacturers have to balance the allure of premium products with a price tag that won't scare off budget-conscious consumers.

Manufacturers also work to maintain a balance on their end in terms of offering premium packaging for lower-priced

products while keeping costs down.

Combining a more expensive premium product with high-quality packaging is one thing. But finding ways to maintain margins while "luxuriating" a nonpremium product can be a challenge.

The concept of premium packaging has also evolved over the years to adapt to consumer trends. While materials were once the primary focus, convenience now factors into how appealing packaging is to a consumer, leading to the rise of pouches and other innovations. Sustainability is also a key, such as when manufacturers design packaging to lead to less waste or

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use materials that can be recycled or that come from bio-based plastics.

Why What a great time to be in the packaging business! Pick just one of these paradigm shifters to focus on and your packaging R&D and design folks would be overjoyed with the possibilities. Put four major disruptors on their plates and they’ll be comatose with constant collaboration and commercialization opportunities.

These are the times when innovation is most needed and appreciated, offering huge competitive advantage opportunities

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NUTRITION was limited to the confectionary category.

But with the entry into premium gifting, it became clear that the frame of reference should be much broader, with extended gifting categories.

This led to the development of Cadbury Glow, which borrowed into confectionary new visual design cues from broader gifting categories, such as liquor, perfume and jewelry. The Glow premium pack is tall and slim and, when closed, looks more like a champagne case than a chocolate box.When the outer pack is revealed, the inner pack resembles a treasure or jewelry chest that glows from the inside out.

to those who reach for the brass ring.

Take e-commerce, for example. Many of today’s typical consumer packages are designed for on-shelf stability, eye appeal, and sturdiness. In the world of e-commerce, there’s no shelf to sit on or compete over, and the shipping container does much of the product protection work.

Thus, the job of the primary package should change to maximize brand value reinforcement and product ease of use.

And, because of the reduced need for durability, it can probably be downsized and/or light weighted as well and where once a box was needed, an envelope or pouch may now fit the bill.

Global consumer branded products are facing headwinds in developed markets with rising commodity costs and retail chains becoming more focused on private label. While in developing markets, rising disposable income is accelerating the emergence of the middle class, people who expect their trusted brands to deliver experiences that are more special than before.

These macro-trends should serve as a catalyst for mainstream global brands to premiumise their portfolio. The term premiumization was coined sometime in the 1990s to open a new door in the alcohol and beverage market, redefine top-shelf offerings and provide a taste

of the higher life for consumers. It is in essence the process of creating a bridge between the desirability of the luxury world and the function and necessity of the mass market.

But as more brands look to premiumise their offerings, they discover that stretching a mainstream brand upwards in an authentic and sustainable way is proving to be more challenging than expected.

Finding the convergence between these two markets demands the right kind of magic from brand owners, marketers and designers. Here are three key tips to enable global mainstream brands to premiumise their portfolio: Frame of reference When premiumising a brand, one of the key strategic aspects to define is the frame of reference the brand wants to play in. This can be different from where it is positioned today, and the decision will impact the overall product and pack brief. A great example was when the Cadbury chocolate brand decided to enter the premium gifting space in Asia. Until then, the frame of reference for the Cadbury brand, including its gifting offerings,

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This extended frame of reference, translating into a premiumized proposition, enabled Cadbury Glow to gain sales from new broader gifting categories, which previously the brand didn’t have access to.

Consumer and market context Premiumization is often subject to context and location and how developed (or not) the market may already be. It’s about deep understanding of culture, to decipher the semantics and mood of what premium really means for local consumers and their mindset.

A study conducted in 2015, consumers across several markets what they considered to be the most important attributes in determining if a product is

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NUTRITION relatively disengaged consumers, therefore brands need to take the time to focus on package quality and design to create packaging that offers a bold, consumer-facing billboard on the shelf.

Between design and functionality, premium packaging has the ability to influence whether consumers see a product as more valuable and worthy of a higher price — which may be crucial to manufacturers’ efforts to boost top-line performances.

premium. Reviewing the results might lead one to think that there are more similarities than differences in how consumers define premium, but marketers and brand owners need to delve much deeper into the real meanings of these attributes to successfully premiumise their brands.

Although most consumers prioritize “high quality” in determining if a product is premium, they mean different things across markets. In developed markets like the U.S. and U.K., hand-crafted food products equate to quality and premium.

But in emerging markets like India, China and Brazil, mass-manufactured food products by large multinational companies with strict quality standards equate to quality.

Distinctive brand assets The question of what premiumization means for brands is becoming increasingly dependent on drawing out the particular specialness inherent in a brand’s own equity. This is something that is called “distinctive assets.” The distinctive assets could be specific brand colors, shapes, packaging or even country of origin.

These distinctive assets need to be further stretched to convey more-specialness, and it is critical that they are at the

heart of any premiumization process.

Toblerone is a great example of a brand that has distinctive assets that are core to the proposition and are even further leveraged as it stretches to more premium offerings in retail channels such as Duty Free. It has a unique triangle chocolate and packs shape, uses gold on pack and identifies Switzerland as the country of origin.

As we all aspire to a better quality of life, luxury can make us feel special— because it is special. Premium-ness, as with luxury, establishes difference—our difference—but at a price we can afford and in ways that we can incorporate into our daily lives.

If brand owners can develop a truly resonant understanding of what premiumization means for them, they can use it masterfully to take their brand to a new level.

Controlling down the aisle of a grocery store, consumers may not realize the amount of time and effort that has gone into planning the packaging for the food and beverage products lining the shelves.

According to a research, shoppers spend on average 27 seconds making a decision in this aisle, which makes shelf appeal incredibly important in capturing

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How premium packaging creates value through functionality, convenience Packaging has two primary purposes: to contain and protect the food or beverage and to catch a consumer’s eye on the shelf. But when manufacturers add functionality — particularly in the form of convenience — to their product packaging, that can inherently add value for the consumer. They may see the final product as “premium.”

Consumers desire package designs that are more adapted to their needs than ever before and attributes like functionality, shape and graphic design have the ability to make a package appear premium in the eyes of the consumer.”

Value for consumers today can extend well beyond financial worth. Nowadays, it often comes from to the perception of the product's overall contribution to his or her life. Snacks, candy and gum producers have debuted various convenience-based packaging innovations that contribute to a "premium" perception, such as resealable pouches, mini packets and car cup holdersized packages.

Successful marketing now involves engaging customers and showing how products not only make life easier but also more meaningful, and that is why packages with high functionality tend to be perceived as premium, so features like high performance openings and closures are sometime perceived as premium to consumers… As the pace of living grows more hectic and lines between work and leisure blur, consumers value products and services that simplify their schedules

NUTRITION

56 www.agronfoodprocessing.com and provide possible.”

convenience

wherever

But many experts don't think convenience is always a major factor in whether consumers deem packaging — and the product contained within — premium.

Convenience is a key benefit for any product and pack whether it is positioned as mainstream or premium and consumers expect products to simplify their lives.

The importance of premium packaging design Functionality is one consideration, but premium packaging for many consumers still comes down to the packaging’s visual design.

Consumers also want their on-thego packages to fit their lifestyle and be visually appealing, thus this is another reason design is crucial.

the commonality of the category, (and) the more of those norms you follow, the less likely you're going to be premium and to stand out distinctly as being premium, you need to break some of those norms.

How premium packaging impacts pricing Because manufacturers can use premium packaging as part of a product’s positioning, packaging choices can also impact price beyond the cost of packaging production.

Premium packaging is used as a key component of product positioning as it often helps the product deliver value for

Design plays a major role in creating a premium image, probably the most major role, more than advertising, more than celebrity endorsement. The four primary cues associated with premium packaging: • A distinctive or iconic pack shape/structure to cue brand personality and distinguish premium lines. (like Toblerone’s triangle pack and Absolut Vodka’s uniquely shaped bottle) • Connecting on a sensorial level and appealing to multiple senses, such as touch, sound or smell. Packages that can successfully stimulate most of the senses will be perceived as more premium.

• Specialty finishes that link to the importance of tactile feel.

• The power of simplicity to cue sophistication and elegance, which “in essence means ‘less is more’ with premium packaging.

Besides common traits of premium packaging, some products’ packages are seen as premium simply by standing out from everything else in that category.

If the norm of the category then defines

consumers. But it’s also important to keep in mind that premium packaging used in non-premium products won’t deliver anything.

Depending on the social or financial value packaging can deliver, manufacturers may be able to raise prices on the same product by using packaging seen as premium — and consumers will pay a premium for it.

According to Deloitte’s 2015 report today’s consumers are willing to pay more for products with the right attributes, including innovations and improvements, customization and convenience. It’s easier to stand out from the crowd if consumers can plainly see these functional improvements.

Premium packaging, if executed and positioned correctly should enable (manufacturers) to command a higher price point and deliver incremental sales

VOl.12 Issue 02 December 2016

for the brand.

As art of the process of premiumising a brand and its packaging, a key strategic aspect to define upfront is the frame of reference the brand wants to play in. This can be very different to where the brand is positioned today and the decision will impact the overall packaging brief.

With the use of premium packaging already on the rise, experts predict that more manufacturers will adopt this strategy as they work to improve their top lines.

Global

consumer branded products are facing headwinds in developed markets with rising commodity costs and retail chains becoming more and more focused on private label. While in developing markets, rising disposable income is accelerating the emergence of the middle class who are expecting their trusted brands to deliver more special experiences. These macro-trends serve as a catalyst for mainstream global brands to premiumise their portfolio.

Today premium packaging is everywhere — even low-end products Making products in a variety of categories more premiums has garnered attention in the food and beverage industry, but premium packaging is another way manufacturers are serving up affordable luxury to consumers.

Two primary principles drive premium packaging. Changes to packaging are "inevitable, constant and must be anticipated to ensure success." This type of packaging also offers consumers a promise that product presentation with a luxury element can exceed consumers' expectations and encourage brand loyalty.

The definition of "premium" packaging continues to evolve, and can mean anything from heavy-duty materials and attractive labels to sustainability and convenience.

57 www.agronfoodprocessing.com

EXCLUSIVE INTERVIEW

‘Today Industry seeks for premium packaging’

G

lad to have a conversation with Mrunal Joshi – Executive Director of Nichrome on the packaging industry and how her company has reached the pinnacle of success.

Mrs. Joshi, under your direction and guidance how are you going to take Nichrome to the next level?

We have a lot of good solutions in the Vertical Form Fill Seal Machine, but there are lot of Western manufacturers coming in to India. Some of them are world leaders and we have to compete with them, so the number one factor is that we are working on the reliability of our machines.

A lot of internal activities are going on at our end, by improving the speed and accuracy so that it adds value to our customer base.

Secondly, I feel that the Indian market is getting more matured with time. Though it is economical-driven market, but nowa-days they are looking at premium packaging which can give the product good shelf space, better shelf life. We are offering different kinds of pouch formats, also we have a latest addition to our basket of innovations is Pick-Fill-Seal machine that will be used for Indian ready-to-eat products. We are receiving good response for that, because there was a lot of R&D involved to give that solution.

Nichrome has been providing traditional packaging to products like edible oil, dairy, grains and so on. What about the new verticals entering the food industry? How is their response?

Sugar is getting more and more costlier, because retail of sugar is the latest entrant to the brand market. We have seen how atta and edible oil established themselves, and so in the next 5 years we will see sugar come up slowly. Loose sugar will be completely wiped out and I think pulses is next in line to enter the retail

brand segment. We see the trend of these things getting branded, so rice and pulses will be a retail brand in few years.

Nichrome has many global tie-ups and have done reverse engineering by exporting and so on. Kindly brief us about your activities.

We tied up with a Spanish company for horizontal packing, and the business is going good. They provide machines for Indian products like ghee, gulab jamun mix, snacks items and pharmaceuticals.

Pharma is a huge sector for horizontal machines, and is now opening up for our multi-lanes machines also. We are offering a new solution – six pack sachet solution, earlier we had a solution that was 2 heads but this one can go up to 10 heads. We will be serving the hotel and service industry with this machine.

R&D is your major forte where you have been leading among your competitors. What has been your expansions in the last 2 -3 years?

We have introduced probably India’s fastest packing machine for powder known as ‘Maxima’, it’s a twin tube machine that if you have one module it will give 200 pouches/minute and if there are two modules then 400 pouches/ minute. This machine has received great response in the spice industry.

The requirement for this small retailsized pouches has increased, and this is our machine that has got a different technology because of its in-house development. We are very happy and proud of ‘Maxima’ because it has already been installed at three places in the South.

We have also launched our fastest milk packing machine as well, which produces 12,000 packets per hour.

Do you think as the Indian market matures, the demand for accurate and high-speed machinery will increase?

The demand for these high-speed machines will grow because the Indian retail market is growing at a very high rate. There is no choice for the

VOl.12 Issue 02 December 2016

manufacturers then to make packed products as per the market demand. If we want to compete with global brands, then we need to make our machines efficient to match the international standards. Indian food manufacturers would prefer Indian machines because we very well know our products. We have been packing spices since the last 25 years, it becomes a plus point for the Indian manufacturers when they know the product well.

Please tell us what is the main USP of your company?

The main USP of Nichrome is the expertise for making machines and expertise for packing Indian products and the service provided. Our service engineers are present everywhere in India. Service back-up is very important for food manufacturers because they work in continuous shifts, machine breakdown etc. affects the quality of service provided.

What is your message to your customers, colleagues, contacts?

Harish was a fantastic leader; he has built a fantastic team. His thoughts and values are always embedded in us, even though he is not present with us now.

Team Nichrome is strong and united, will enthusiastically work towards achieving success.

NEWS

58 www.agronfoodprocessing.com

77 Green always ensure quality production: Bhavesh

I

ndia is globally famous and widely recognized for its traditional food and spices. We manufacture and export Ground Spices, Blended Spices, Instant Food Mixes, Hing, Papad & Kasuri Methi under the brand of 77Green for the last 8 years.

As a Global spices manufacturer, our range of Spices is widely appreciated across the world for quality, high nutritional value, and excellent medicinal properties.

The company have the capability to offer these Vegetarian spices with green concept and customized packaging in order to retain their freshness and aroma. We make sure that our Spices are in compliance with the latest industry standards.

Company is ISO & HACCP certified and operate under the license of ISO 22000, AGMARK, FSSAI (Food Standards & Safety Authority of India), Spices Board of India.

Our company is well recognized as a Pure spices manufacturer and exporter and successfully supplying its products in 12 states of India, Indonesia, Australia, South African Countries & Middle East countries since 2009.

With expanding markets and foray into new product categories, the company plans to strengthen the team of professionals.

Company also welcome the superstokist & distributors to associate with the family of 77Green from each & every corner of the nation.

They will be awarded with attractive commission margins, lucrative packing, and consistant quality with wide range of products.

Edible oil tax slab may be revenue-neutral

T

he tax slab for the edible oil sector under the coming national goods and services tax (GST) is likely to be revenue-neutral. Besides checking tax evasion, this is likely to improve the overall efficiency in the sector, experts said.

Edible oil is in the essential commodity category, which attracts the lowest GST rate of five per cent; the overall rate would be nearly 5.5 per cent.

“Inflation on edible oil is not only managed by tax. The government has import duty as another tool, with a large part (of supply) imported. GST would improve efficiency in the supply chain,” said Siraj Chaudhry, Chairman, Cargill

Event Calendar-2016 Month

Events

January 2017 3rd-6th Khadyakhurakh, Ahmedabad 12th- 14th Food Tech, Kerala 19th-21st Food Hospitality, Mumbai

25th-27th Africa's BIG SEVEN Johannesburg Anniversary Beverage & Food Processing Times

Feburary 2017 16th-18th IIDE, Mumbai 23rd-25th Acrex, New Delhi 24th-26th FoodTech, Pune 26th-2nd March GulFood, Dubai

August 2017 3rd-6th PackPlus, New Delhi 21st-23rd ANUTEC/International FoodTech, New Delhi 28th-30th, India Foodex, Bangalore

March 2017 7th-11th Aahar, New Delhi

September 2017 7th-9th FoodPro, Chennai 13th-15th FI Asia, Bangkok 14th-15th Ice Cream Expo, Mumbai 14th-16th Annapoorna, Mumbai 26th-28th IntelPack, Mumbai

April 2017 7th-10th PackPlus South, Bengaluru May2017 17th Snacks & Namkeen Industry in India Mumbai June 2017 9th-11th Food Hospitality, Bengaluru 14th-17th Propak Asia, Bangkok

October 2017 31st-2nd Nov Gulfood Manufacturing, Dubai November 2017 9th-11th FI India,Mumbai 28th-30thFI Europe, Germany

VOl.12 Issue 02 December 2016

India.

India produces 7-7.5 million tonnes of edible oil annually, a third of its consumption. The rest is met through imports, primarily from Indonesia, Malaysia and Argentina. This year’s import is likely to be a record 15.5 mt.

Operating at a one to two per cent, some small and medium size entities opt for tax evasion to avoid loss. GST is expected to help check this. “Keeping edible oil in the lowest slab category would encourage genuine business in the system,” said B V Mehta, Executive Director, Solvent Extractors’ Association of India.

“We are analysing the impact; a lot of clarity is required on the GST structure announced recently. Including edible oil in the lowest category of taxation under GST will help enlarge the food security net,” said Dinesh Shahra, Managing Director, Ruchi Soya Industries.

59 www.agronfoodprocessing.com

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