Newsletter from Kerala State Industrial Development Corporation 2 lng terminal to double capacity
4 Terumo Penpol, a rare success
Vol.1 Issue 7 November 2010
6 The time to take off
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Kerala Cafe K
erala-born US industrialist George Paulose was testing his home ground when he set up a unit of AMES Food Processors at Nellad in Ernakulam district. It will facilitate the export of cashew nuts to his Seattle-based company, he thought. That was in 2005. Today, his stateof-the art manufacturing plant makes a
A slew of factors is spicing up the State’s image as the world’s local kitchen -- excellent connectivity, high standards of hygiene and clean air. And many have already realised this potential
variety of value-added products aimed at the Asia-Pacific markets. The company exports up to eight containers of processed cashews a month. He is planning to invest close to Rs 225 crore more to diversify into local products by 2015. The scaling up is not just because of his love for the motherland. Paulose is
one of the many industrialists who bet on Kerala’s advantages when it comes to food processing industry. The State now has nearly 1,274 food processing units, the third highest in the country after Maharashtra and Tamil Nadu, according to the Confederation of Indian Industry (CII). The State holds a 20 per cent share Contd. on page 6
It’s shopping time in Kerala
The shopping extravaganza of the State — Grand Kerala Shopping Festival — has got off to a flying start making Kerala in to one big shopping mall. Organised to give a big leap for the trade and commerce in Kerala, the fourth edition of GKSF offers discounts, special offers, exciting prizes and fun filled events during the Christmas/New year holiday season. It will distribute 101 kg of pure gold as gifts, which includes the mega prize of 1 kg gold to three persons. The festival has special offers for non-resident Keralites who will get 60 per cent pay back on VAT when they shop using credit cards. The festival lasts 45 days, ending on January 15.
LNG Terminal capacity to be doubled
The board of Petronet LNG has given in principle sanction for doubling the capacity of the LNG terminal in Kochi from 2.5 million tonnes to 5 million tonnes. The expansion would entail an additional investment of Rs 450 crore. Work on the Kochi terminal is moving according to schedule and the terminal is expected to be commissioned by March, 2012. The company has already tied up a 1.5-tonne LNG supply agreement with Exxon Mobil Australia and is in discussions with various suppliers around the world for sourcing LNG. Petroleum Secretary S Sundareshan said public sector oil companies have earmarked Rs 10,000 crore for investment in the State.
Tourism awards for KTDC, CGH Earth
LNG pipeline work to begin soon
Gas Authority of India Ltd (GAIL) will soon start work on the pipelines to transport LNG from the LNG terminal at Kochi. GAIL plans to lay a pipeline from Kochi to Mangalore, and a sub-sea pipeline from Kochi to Kayamkulam. The sub-sea pipeline, to supply LNG to the National Thermal Power Corporation unit at Kayamkulam, will have the capacity of 11.5 million standard cubic meters per day. In a written reply in the Lok Sabha, the Minister for Petroleum and Natural Gas, Murli Deora said the feasibility study for the pipeline has been completed and the environment clearance is being sought. The work is expected to be complete in 18 months, in line with the LNG terminal, which will be operational in March, 2012.
Investors, developers back Vizhinjam
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Hindustan Construction Corporation, Mercator Lines, APM Terminals, the Essar Group, Besix of The Netherlands and Mundra Port. Meanwhile, Vizhinjam International Seaport Limited (VISL) invited a request for qualification (RFQ) from international bidders. More than 30 companies have evinced interest in the proposed multipurpose port. “The tremendous response from the investors is just an indication about the port’s business potential,” Ports Secretary Sanjeev Kaushik said.
Banks, financial institutions and developers have offered their support to the proposed Vizhinjam international deepwater container transhipment terminal. As many as 60 participants from nearly 33 banks and financial institutions were present at the day-long international investor meet held in Thiruvananthapuram. Developers who attended the event included GMR,
Intersight Tours and Travels, Kochi, and The Great India Tour Company, Thiruvananthapuram, have won the award for the best inbound tour operator and outbound operator respectively, in the Kerala State Tourism Awards for 2009-10. The Kerala Tourism Development Corporation (KTDC) Hotels and Resorts’ property at Thekkady, the Periyar House, has won the award for the best one-star /two-star hotel. Snehatheeram, Thalikulam, Thrissur, has been adjudged the best tourism destination while the Marari Beach Resort, Mararikulam, won the award for the best three-star hotel and for the best innovative tourism project. In the best heritage hotel category, Coconut Lagoon, Kumarakom, came up trumps.
KSIDC NEWS
Industries Minister Elamaram Kareem speaks at the China Mining 2010 expo at Tianjin. (Right) KSIDC Managing Director Alkesh Sharma makes a presentation at an investor meet in Tokyo. Also seen are Industries Minister Kareem and Additional Chief Secretary (Industries & Commerce)T Balakrishnan.
Selling Kerala abroad Delegation led by Industries Minister evokes investor interest in China, Japan, Vietnam
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ndustrialists in China, Japan and Vietnam have evinced keen interest in investing as well as forming joint ventures in Kerala in segments such as metals and minerals, food processing, electronics hardware, infrastructure, IT and tourism. During discussions with a visiting high-level delegation of the Kerala government, led by Industries Minister Elamaram Kareem, the industrialists appreciated the progress Kerala has made in healthcare and social sectors. They also indicated sending trade delegations to continue the discussions. The Kerala delegation, during its interactions, pointed out the success of
From MD’s Desk
Home, sweet home
T
he world, it seems, is celebrating the India growth story. No year passes without our country making at least once to the cover of renowned publications such as The Economist or Time. They hail not only the Indian IT industry, but also the domestic market which they hope would help them sustain the developed economies in the future.
the small and medium enterprises and the service sector in Kerala. Speaking at China Mining 2010 meet at Tianjin, China, the Industries Minister said the government was promoting investment in mining, geology and other mineral-based industries. The State would encourage mineralbased industries, which provide valueaddition and generate employment, he told delegates at the expo, the largest of its kind in Asia. The Minister also invited investors to consider electrical goods, electronics hardware, food processing and infrastructure projects. Many companies have shown interIf the foreigners are so gung-ho about the growing Indian market, how do our own businesses look at it? I believe this offers a rare opportunity to Indian entrepreneurs. Some of our sectors such as food processing thrived all these years on the foreign market. Now, the growing domestic demand presents them with a double bonanza. You will read in this issue how the food industry is poised for big growth in the coming years. I believe that with our economy growing at close to 9 per cent a year, the demand for processed food will only go up. The Central and State governments, recognising the potential of this sector, and its ability to create employment, have designed
est to visit Kerala for further discussions and explorations. Among them, Shanghai Electric Power Generation Group has shown interest in investing in the Cheemeni thermal power project and transformers of TELK and KEL. At a meeting with the delegation in Tokyo, Japanese industrialists showed keen interest in the economic growth story of India and especially about the new opportunities in Kerala. The delegation had discussions with top officials of Nitta Corporation and Arakawa Chemical Industries Ltd on expanding their activities in the State. Delegations from the companies are expected to visit sites in Industrial Parks and Growth Centres early next year. In Vietnam, trade, business and industry representatives expressed their interest in developing business tie-ups with Kerala. The Kerala delegation had detailed interactions with government officials and business community members at a meeting held in Ho-Chi-Min City. The discussions included areas of bilateral co-operation and joint venture opportunities in food processing, electrical and electronics, Ayurveda, and rare earth mineral separation. The Kerala delegation included Mr T. Balakrishnan IAS, Additional Chief Secretary (Industries & Commerce), Mr Alkesh Sharma IAS, Secretary Industries- Investment Promotion & Managing Director, KSIDC and Mr N Sasidharan Nair, Special Private Secretary to the Minister(Industries). several schemes to support investors. KSIDC will be happy to help those who come forward and invest in the State. The success of Teruma Penpol, the largest blood-bag manufacturer in the country, is another story which is yet to unfold fully. It has also served the foreign markets all these years and is now gearing up to benefit from the growing Indian market. I am so proud that it is one of the crowning glories of Industrial Kerala which KSIDC helped set up. It is our mission to identify such daring entrepreneurs and promote such ventures. I solicit your feedback at mdksidc@vsnl.net Alkesh Sharma 3
A rare group Manufacturing is not Kerala’s forte. However, Terumo Penpol has scripted a rare and perfect recipe for success making blood bags and remaining the market leader. That it is the third largest blood bag manufacturing facility in the world is not quite a secret. But the recipe for the success of a company which produces a deceptively simple but technologically complex product is. If you want to unravel it, step in to Terumo Penpol. The manufacturing plant at Puliyarakkonam on the outskirts of Thiruvananthapuram employs indigenous technology and Japanese management practices to make blood bags which are sold in as many as 82 countries. The company makes 20 million bags a year; and when its expansion completes in 2011, it will be the largest such plant in the world. The genesis of the company in 1985 does not talk about a technological wizard flying down to create a magical product. Instead, it shows the daredevilry of a man who left a prestigious and attractive government job after being hit by entrepreneurial bug. When C Balagopal, a 1976-batch IAS officer, resigned from service and started Peninsula Polymers, it was a surprise of sorts for many. All that he had with him was the technology for a new product and the promise of an assured market. It was an announcement that the National Research Development Corporation (NRDC) was looking for entrepreneurs to commericalise newly-developed technologies that took Balagopal to Prof. A V Ramani, the then Head of the Research department
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of The Sree Chitra Tirunal Institute for Medical Sciences & Technology (SCTIMST). Prof. Ramani convinced him that it was his calling to manufacture and sell blood bags. In those days, blood was collected in glass bottles, which were then reused. Blood bags were not produced in India and the high cost of imported ones pre-empted its use. Blood bags are a sophisticated product, and the promoters had no experience in this line of business. Nor did anyone else in the country. To complicate matters, machines needed to manufacture the bags were not available in the market. So the company had to start from scratch and develop those machines. Apart from Mr Balagopal, institutional investors like KSIDC and NRDC also chipped in to meet the initial investment of Rs 1.84 crore. His brother, Mr. C Padmakumar, Executive Director, Terumo Penpol, also joined
Terumo Penpol’s recipe for success: a daring entrepreneurship, enabling industrial infrastructure, a knowledgeable and skilled workforce, a never-say-die attitude, a culture of continuous learning and unflinching commitment to transparency.
the team soon after. The company faced more than its share of problems in its initial years. “The problems we faced were not the usual ones in Kerala. Such problems were manageable,” says Mr Balagopal. “You cannot establish a manufacturing plant of such high standards just anywhere,” he says Balagopal, looking back at his decision. “The educated workforce in Kerala provides a key resource for the plant.” The problems continued once production started. The company had pinned its hopes on the proposed National Blood Transfusion Service (NBTS), which was to act as a blood bank for hospitals, and use blood bags.
But the NBTS was a non-starter. There were not many takers for the new product; convincing people of its advantages was not easy. Dogged pursuit of marketing initiatives, however, started bearing fruit, and consumers started using the product. And in came competition. Blood bags came under the category of life saving goods and could be freely imported into the country even in those pre-liberalisation days. Korean and Japanese players entered the market with lower prices, pushing the fledgling company to the brink. Imposition of 40 per cent import duty on blood bags, however, provided a bloodline to the company. The management faced every problem through a very transparent approach. “All the facts were laid before the board of the company,” says Mr Balagopal. “The bad news was not swept under the carpet. As a result, the investors, including KSIDC, had faith in the management and pumped in more funds to support it, even when we were making losses.” This transparency is ingrained in the company culture, along with its low key nature and spartan ways. “We do not punish mistakes,” says Mr Balagopal. “But you will be in trouble, if you hide one.” The slow growth in the domestic market prompted the company to look at the export market. The company went global even before the advent of liberalisation after improving the quality of products and processes: it was one of the first companies in India and the first company in Kerala to get ISO certification, back in 1995. When the domestic market started growing and competitors started operations, these learnings helped it steal
a march over others. The capacity has been expanded from 2 million bags per annum when it started to 20 million bags per annum now. With liberalisation it became clear that multinational companies would be permitted to set up subsidiaries here. The company started discussions with the Japanese giant Terumo, which culminated in Terumo acquiring majority share in the company. The tie-up with Terumo brought in many advantages, mainly in the area of manufacturing techniques. “Most of the technology used in the company is still indigenous,” he said. “Terumo’s plants are much more automated and require only a quarter of our staff strength. But they are expensive too.” The contribution of Terumo has been in areas of manufacturing processes. The parent company provides it the financial backing needed to expand its operations. It also markets the products of Terumo Penpol abroad, enabling the company to concentrate on the domestic market. Terumo Penpol has justified the trust placed in it by its parent: it has been recognised as the best unit in Terumo many times. India’s rapid economic growth is reflecting on the fortunes of Terumo Penpol. After long years focussing on the export markets, which accounts for 60 per cent of its sales, the company is turning to the domestic markets now. It expects the domestic market to grow much faster than its export markets. It is the leader in the domestic market, with a market share of 22 per cent by number of units sold and 40 per cent by value - a proof of the premium commanded by its products. The company has showed the recipe for success is an easy mix. It demands daring entrepreneurship, enabling industrial infrastructure, a knowledgeable and skilled workforce, a never-say-die attitude, a culture of continuous learning and unflinching commitment to transparency. The company is in for exciting times with the growth in its home turf. The times surely have changed.
The Japanese connection
Terumo Penpol has benefited immensely from the experiences of its Japanese parent, says Balagopal. It has
The company stuck to transparency values even during hard times. As a result, the investors, including KSIDC, had faith in the management and pumped in more funds to support it, even when it was making losses. helped the company standardise its operations and improve the quality of its products. Japanese techniques like Kaizen, 5S and lean manufacturing have been implemented at the plant. Terumo Penpol no longer makes products to stock them in anticipation of an order. The production is scheduled based on the receipt of orders and the product is shipped immediately after production. Instruction sheets with pictures detailing the standard method of operation are pasted at each workstation - be it near a sophisticated machine or for inspection and even for changing rollers that are used to capture dust particles from the uniforms when entering the sterile areas. Kaizen (continuous improvement) boards, with entries of problems faced during the day, the person working on the problem and the status are kept in each section. At red bin review meetings that are held everyday at the shopfloor, these problems are discussed, solutions identified, and persons assigned to implement them. This process of continuous improvement has turned the company into a learning organisation.
Blood bags
Blood bags are made by welding together extruded plastic sheets. The bags are subjected to autoclave sterilisation at high temperatures and pressures and freezing temperatures in the blood banks. They should also withstand processes like centrifuging, used to separate the various components of blood. Various parts like connecting tubes, needles, outlet ports, special flow-regulating valves, filters, safety features and sampling ports go into these bags, which are filled with an anticoagulant solution that prevents blood from clotting. The bags must be free of suspended particles or leakages that would endanger human lives. 5
Interview/A J Tharakan
A J Tharakan, chairman and managing director, Amalgam Enterprises, with his new series of products.
Time to take off A
J Tharakan, chairman and managing director, Amalgam Enterprises Ltd, is considered the pioneer of food processing industry in Kerala. Units under the Amalgam group were some of the earliest ones that looked at value addition of sea-food products. Of late, the group has staked its growth on the processed food in a range of products, in ready-to-cook and ready-to-eat categories. In an interview with Update, Mr Tharakan said the growing local market is the biggest incentive for entrepreneurs to look at this segment. “It’s a cushion
the industry did not have earlier,” he said. Excerpts:
in the country’s food exports. The exports went up from 4,640 TEUs (twenty-foot equivalent unit) in 2002 to 5,912 in 2007. Though recession took a heavy toll in 2009 and exports fell to 3,765 TEUs, the recovery has been good so far this year, said T M Padmanabhan, senior executive (statistics), Cochin Chamber of Commerce and Industry. Food processing is one of the fastest growing industrial segments in India. The Eleventh Five Year Plan has kept aside Rs 1 lakh crore for the processed food sector, and this is to be trebled by 2015. This is aimed at 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. It will also generate nearly one crore jobs in the rural economy by 2015. The government aggressively backs the growth of the industry as it creates more jobs compared with many other sectors. For every Rs 1 crore invested, 18 jobs are created directly, and 64 indirectly in the organised sector and 20 in the unorganised sector across the supply chain. For most other industries, this ratio is substantially low. The vibrant exports market and the growing local spread have ensured steady business for those who have ventured into the industry. “There is a great demand for products from the State in western countries,” said Cyriac Joseph, managing director of Economic Food Solutions, Kochi. “We produce
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What are the prospects of the food processing industry? Extremely bright. The local market is growing between 20 per cent and 30 per cent. People with high disposable income are increasingly turning to processed food. The latest global trend is that food processing is moving to places of its origin where labour is available. Rich countries are increasingly finding it difficult to process food because of the nature of the job.
It is advantage Indian food processing industry now. Globally, food processing is moving to the places of origin, which means steady export markets. Demand at home is also growing at a healthy rate. It is time to take off.
There is tremendous scope for valueaddition. We must grab this opportunity and position ourselves as an international food reprocessing centre. We have good modern factories which can meet all international quality standards. We have skilled manpower and the raw materials. What are the advantages Kerala has? Food processing is highly labour intensive and our biggest advantage is a large, though shrinking, pool of skilled human resource. Our personal hygiene 4-5 tonnes of food materials daily, and 70 per cent of this is Kerala parotta.” The company’s products, marketed under the brand name ‘Instant Delights’, finds place in stores across the US, UAE and Europe. There is a growing domestic market too, with Kerala having the highest per capita expenditure on food in the country. “The working population is ready to embrace the packaged food culture,” Joseph said. “Many prefer instant food mixes to traditional ways of cooking. This is reflected in the wide range of packaged food available at grocery stores in the State.” The spurt in demand for processed food has been triggered by urbanisation, better standards of living and the convenience needs of multiple-income
levels are on par with developed countries. We also have tremendous locational advantage as we are on the transit route connecting the East and the West. So we can access the world market easily. What is the trend in the domestic market? India is emerging as a big market for the food processing industry. Modern trade practices, emergence of market chains and super markets and the increase in the number of people with higher disposable income are some of the factors that help the growth of the domestic market. The growth of the domestic market has helped the industry in a different way also. Till now, we were banking mainly on the export markets, which were fraught with uncertainties. A lot of factors beyond our control could influence the fortunes of the industry. Even a slight reversal could imperil the business. The emergence of an assured domestic market cushions us against these dangers. It actually makes us more competitive in the international market. How do we tackle competition from abroad? Foreign direct investment is moving to the east in a big way. Countries such as China, Thailand and Vietnam corner the big chunk of it whereas we have not been able to get our fair share. We families. And Kerala enjoys a clear edge — its varied cuisine and the spread of Malayalis across the globe. Many have cashed in on this opportunity and the non-resident Keralite is now spoilt for choice. Be it the ubiquitous banana chips or the wide variety of pickles, it’s all up for grabs at stores abroad. It’s not just the market that attracts entrepreneurs to Kerala. The State offers a strategic location for shipping, people with exposure to global standards, availability of high quality of labour, very high standard of public hygiene and availability of raw materials such as cashew and spices. In fact, the AMES success prompted German gourmet cakes major Reimman’s to shift base to Kerala from Hyderabad. “We factored all these aspects before
have certain advantages over Chinese with respect to foreign markets such as Japan, and we must exploit them. At present, we export non-processed or semi-processed material to Thailand and Vietnam where value addition happens before being exported to Japan or the Western markets. What are the hindrances to the growth of the industry? I suggest that the government put in place an industry-friendly policy frame work. Our import restrictions, licences and delays stop us from taking on competition from other companies. For example, I would find it difficult to meet the delivery schedule if my US client wants a kheema with an ingredient from New Zealand. It would take a long while before I get an import licence to bring the stuff here where as my competitor from Thailand would have none of these problems. The government must also revisit its tax policy. VAT on processed food is 12.5 per cent here, whereas food carries zero tax the world over. Given the labour-intensive nature of the industry, the government must encourage it, instead of taxing it heavily. What are the plans of the Amalgam group? Earlier we were only supplying raw material to processors abroad. We found that these products come back to India after value addition and are we moved in,” said Mathew Philip, Reimman’s general manager. The company, which also set up shop at the Kinfra park, makes cakes for the local market. AMES sees Kerala as an ideal base to make products for the Middle East, the Far East and Europe. It markets value-added cashew products under the brand name Emily’s in Wal Mart stores. Even local entrepreneurs have jumped on to the bandwagon. P V Jose, 60, a pineapple farmer in Vazhakulam in central Kerala bought high-end machinery to produce pineapple pulp two years ago. He started out in a small room in his house. Today, the daily production stands at 500 kg of pineapple pulp, and he has got his investment back in just over a year. The require-
We have certain advantages over the Chinese when it comes to foreign markets such as Japan, and we must exploit them fully. We must position ourselves as an international food reprocessing centre. being sold here. So we have started the value addition here itself. We are now going into a whole lot of value added products. Our Sumeru brand of processed food is sold locally as well as exported. We have the new brand under which we will sell soups, health snacks and frozen foods. We are planning to serve the upper category of consumers which is growing substantially. We are also planning to enter the toddler food market in a big way. We understand the Indian rural economy offers a huge market for our products and we are now exploring ways to enter it. Which is the most important challenge for an entrepreneur in the food processing industry? Food safety is a key issue, as you cannot leave someone with an upset stomach after eating your product. So you should have fool-proof processes at every stage—from raw material collection to processing to packaging. ment is nearly 1,200 pineapples per day, which he cultivates on his farm.
Food parks
It has not been long since Kerala, which has been a traditional exporter of seafood, spices and cashew, diversified its product portfolio to include processed food. The unorganised segment had accounted for more than 70 per cent of the output in terms of volume, but only 50 per cent in terms of value. Very few of them had offered quality value-added products to the local customer. Also, unscientific methods were used for cultivation and rearing, and infrastructure for post-harvest handling and storage was poor. Upgradation and modernisation of technology were never a priority which resulted in low productivity. 7
KSIDC support Kerala State Industrial Development Corporation (KSIDC) has been in the forefront of promoting food processing industry in the State. KSIDC extended financial support to the pioneering companies in the food processing sector in Kerala such as Amalgam Enterprises and Parrysons group. Food processing is among the sectors the Corporation has identified it as a priority sector for extending financial assistance. Most of the industries were satisfied with exporting just raw produce. The government’s move to set up specialty parks marked a beginning of the change. Anand Menon, president of the Cochin Chamber of Commerce and Industry, said the move has strengthened the organised sector’s grip on the food industry. “This helped in the manufacture of products that match global standards,” he said. “We need many more such food parks to cater to the growing local demand with emphasis on quality.” At the food parks in Nellad, Malappuram and Adoor, modern plants and scientific testing ensure quality valueadded products of vegetables and fruits with emphasis on organic products and waste management. “The State can now boast of providing the three most important requirements of the food processing industry –steady supply of high-quality water, power and effluent treatment facilities under one roof,” Menon said. Some parks also offer cold storage facilities. R&D centres too have been set up to cater to not only in-house units, but also local food processing industries. The testing centres have their own chemical and micro-biological labs that help in issuing clearance for certifications like ISO. “We encourage industries making value-added products out of locally available produce,” said Diviya Philip, who is in-charge of the Nellad park. “This is to discourage forced growth of alien crops. We are also taking steps to increase the number of primary processing centres, collection centres and cold chains.” Units processing locally available produce such as pineapple, 8
jackfruit, coconut and cashew have tasted early success and faster breakeven periods, she said.
Port facility
The launch of the International Container Transhipment Terminal (ICTT) at Vallarpadam in Kochi next year is expected to bring down export costs, and make raw materials easily available. It will have the capacity to handle mother ships and huge containers to and from ports across the world. Joseph of Economic Foods said the ICTT will reduce the transit time to most of the markets in Europe and the US by half. This will ensure cheaper transportation and help in reaching out
to newer markets. Also, raw materials that are not locally available can be imported economically, he added. More and more people are accepting the synergy of changing lifestyles and processed food. With minimal investment and the promise of maximum returns, the industry can boldly be put to test, says pineapple farmer Jose. “I plan to diversify into more valueadded products in the next couple of months,” he says. This dash of entrepreneurial confidence catches the essence of an industry brimming with opportunities. And there’s indeed a wide spread to choose from. Bon Appétit
Rearing success
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t is an irony that Kerala, with a large share of its population being nonvegetarian, depends on neighbouring States for the raw material for the meat processing industry. Meat Products of India (MPI), a Kerala government company which produces readyto-eat and ready-to-cook products, has introduced a novel farmer-linked buy-back scheme to ensure adequate supply of raw material. Under the scheme, MPI distributes piglets for Rs 2,000 each to farmers who have a patch of waste land, source for food for the piglets, and a roll of patience stretching to just 200 days. It also gives full assistance for rearing the piglets in a hygienic and scientific way. “A team of doctors from our factory conduct monthly checks on the animals to ensure that the meat procured is of the highest quality and safe from diseases,” said
Dr Saji Eassow, production manager and veterinary doctor at MPI. MPI buys back the full-grown animal at Rs 40 to Rs 50 per kg. An average pig weighs more than 150 kg, and this ensures the farmer double returns. The scheme, which was successfully introduced in Edayar, has now been extended to eight more districts. According to P.V. Mohanan, managing director of MPI, the growing urban clientele offers wide scope to the processed meat sector. At present, MPI procures a major portion of its meat from neighbouring States, restricting its market share to less than 10 per cent. “Keralites are known to rear cattle and other poultry only for eggs or milk. Rearing of animals for meat purposes remains an untapped sector,” he said.
For private circulation only. Prepared by Independent Media (+91 484 2423331) for Alkesh Sharma, Managing Director, Kerala State Industrial Development Corporation Ltd, Keston Road, Kowdiar, Thiruvanathapuram-695 003. Executive Editor: K G Ajith Kumar. The opinions expressed in these columns need not necessarily reflect those of KSIDC.