Modern Food Processing - February 2011 by Infomedia18

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Modern Food Processing

February 2011

EDITORIAL

Small, the next big thing

ood processing, undoubtedly, is one of the emerging sectors for Small and Medium Enterprises (SMEs) in India. Some of the factors driving growth of processed foods in the country include organised food retail, surge in export, coupled with growing urbanisation, increasing disposable income, changing lifestyles and food consumption patterns. As per an estimate, nearly 70 per cent of production in terms of volume and 50 per cent in terms of value are contributed by the unorganised sector in Indian food processing. Considering the budding levels of processing at the moment, and growing investment in this sector, the growth curve can only be expected to be sharp. In fact, the SMEs can be the harbingers of inclusive growth across the nation, if vital issues related to infrastructure, supply chain, financial assistance and government policies are addressed soon enough. It is heartening to see proliferation of technological improvements over legacy systems and growing compliance with global quality requirements in this sector. Case in point is packaging and labelling, where the SMEs seem to be more confident in applying appropriate technologies to suit the business requirements.

Published in association with Editor : Manas R Bastia Assistant Editor: Rakesh Rao Senior Features Writer: Prasenjit Chakraborty Features Writers: KTP Radhika Jinoy (Delhi), Mahua Roy Senior Correspondent: Shivani Mody (Bengaluru) Correspondent: Geetha Jayaraman (Delhi), Anwesh Koley (Delhi) Copy Desk: Marcilin Madathil Products Desk: Abha Mishra Assistant Art Director: Varuna Naik Chief Photographer: Mexy Xavier Photographer: Neha Mithbawkar, Joshua Navalkar Design: Mahendra Varpe Production: Pravin Koyande, Vikas Bobhate, Dnyaneshwar Goythale, Ravikumar Potdar, Ravi Salian, Sanjay Shelar, Lovey Fernandes, Pukha Dhawan, Varsha Nawathe, Akshata Rane, Abhay Borkar Marketing & Branding: Jagruti Shah, Ganesh Mahale CEO-Publishing: Sandeep Khosla Associate Vice President: Sudhanva Jategaonkar Circulation/Subscription: Sunil Nair, Distribution Head Email: sunil.nair@network18online.com, customercare@infomedia18.in Tel: 91-22-3003 4631/4633

All these should propel the growth of SMEs. At the same time, the government needs to take more pragmatic steps to take the food SMEs to the next orbit. For a detailed perspective on the SMEs in food processing, turn to the ‘Industry Update’. On a different note, health and wellness have become the top priorities for the consumers of today, and preventive health is gaining greater significance over therapeutic means. In the light of such paradigm shifts, the concept of prebiotics in processed foods is a novel trend, and thanks to latest research results, there have been several new product launches in the recent past. Going forward, with growing number of different foods that can be supplemented and the associated health benefits, this segment is all set to rise. The ‘Sector Watch’ offers latest insights into prebiotics. Last but not the least, there is a win-win proposition for food & beverage companies looking for investments and investors interested in the food processing sector. The ‘Market Insight’ elaborates on this mutual growth story. Read on…

Editorial Advisory Board Dr A S Abhiraman Former Executive Director - Research, Hindustan Lever Ltd Prof M Y Kamat Former Head, Food Engg & Technology Deptt., UICT, Mumbai

Manas R Bastia Editor manas@infomedia18.in

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Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Infomedia 18 Limited and printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J.K.Sawant Marg, Dadar (W), Mumbai - 400 028. Modern Food Processing is registered with the Registrar of Newspapers of India under No. 14798/2005. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved. Editor: Manas R Bastia

February 2011 | Modern Food Processing

CONTENTS

LEADERS SPEAK “Ready-to-eat meat products of Indian origin are gaining popularity in global markets” ...says Sirajuddin Qureshi, Managing Director, Hind Group of Companies

ROUNDTABLE 29

Budget 2011-12: Can it live up to the expectations?

INDUSTRY UPDATE 34

SMEs in food industry: Unravelling the growth puzzle

SECTOR WATCH 38

Prebiotics: Innovation through fibrous routes

MARKET SCOPE

GM food: A molecular miracle Dr Channarayappa, Head - Department of Biotechnology, M S Ramaiah Institute of Technology

MARKET INSIGHT - FUNDING OPTIONS Financing agri-business: Yielding rich dividend

MARKET INSIGHT - PRIVATE EQUITY PE firms: Reliable partners in progress

INDUSTRY INSIGHTS Organic food: The ‘natural’ choice for wellbeing Shushmul Maheshwari, CEO, RNCOS E-Services Pvt Ltd

FOOD SAFETY Traceability system: Tracking the safety in food journey Subhash Vaidya, Proprietor, Dairytech Consultancy Services

TECH TRACK - ROBOTICS Mixed load palletising: Way to better supply chain economics Courtesy: KUKA Robotics

CASE STUDY - PACKAGING Efficient PET bottling: A multi-benefit approach Horst Meixner, VP - Sales, Middle East- Africa, Krones AG

REPORT

Engineering Expo Indore 2011: Echoing success

International Horti Expo 2011: Forging ‘fruit’ful ties

74 78

RE G GU ULAR SE EC C TI TIO ON NS S Editorial .................................................... 11 National News ......................................... 14 World News............................................. 20 Tech Updates ........................................... 24 Events Calendar ....................................... 71 Technology Transfer ................................. 80 Book Shelf ................................................ 82 Product Update........................................ 83 Product Index........................................... 95 Advertisers’ List ....................................... 96

Highlights of Next Issue Sector Watch : Industry Update :

Food Processing Machinery Ready-to-Eat (RTE) Foods

Note: ` stands for Indian rupee, $ stands for US dollar and £ stands for UK pound, unless mentioned otherwise

Modern Food Processing | February 2011

Details on page no. 31, 32, 59

NATIONAL NEWS MARKET RESEARCH

Alcoholic beverages sector to surge, says Datamonitor

Indian economy grew by 7.4 per cent during 2009-10, registering the second highest growth among G20 countries, and is estimated to expand by 9 per cent during 2011-12. India’s growing young population has led to the emergence of an active workforce with increasing BIOTECHNOLOGY

BARC develops fungusresistant wheat Bhabha Atomic Research Centre (BARC) has developed radiation-induced resistance mutations in wheat that it hopes can resist the fungus Ug99, a deadly fungus causing stem rust, which has destroyed wheat fields across Kenya and Iran. In the two-year research, BARC scientists used radiation-induced mutation technique on two popular wheat varieties to develop new mutants that could be used if the rust finds its way to India.“Since the spores of the fungus travel with wind and come down RECOGNITION

Dabur ranked 45th in India’s ‘Most Trusted Brands’ list

Dabur has been ranked 45th among the ‘Most Trusted Brands’ in India in a report titled ‘The Brand Trust Report, India Study, 2011’, published by Trust Research Advisory, Speaking on the achievement,

disposable income. This has provided alcohol manufacturers with an expanding target segment. With a CAGR of more than 12 per cent during the period 200409, the alcoholic beverages sector was estimated to be worth $ 21.7 billion in 2009 and is estimated to cross $ 39 billion by 2014. “India is turning out to be an attractive destination for global players as consumption of alcohol has saturated or even declined in many traditional markets like Europe, while India offers immense growth opportunities”, said Amit Srivastava, Consumer Markets Analyst, Datamonitor

and author of the report ‘Market Insights: Alcoholic Beverages in India’. According to Srivastava, “Alcoholic beverages have traditionally been regarded as a male domain; however, in recent times women have begun to experiment with alcoholic beverages, buoyed by increasing financial and social independence”. This has encouraged manufacturers to launch low concentration alcoholic products aimed at female consumers. The report indicates that there is a growing appetite for premium alcoholic beverages in India. Manufacturers have resorted to innovative packaging and marketing.

with rain, the disease may come to India,” stated Stanislaus F D’Souza, Head, Nuclear Agriculture and Biotechnology Division, BARC. “Resistant varieties have to be developed and kept ready for use if needed. If popular varieties are used for inducing mutation, the new mutant variety will find immediate acceptability,” added D’souza. The work assumes importance as India produces more than 70 million tonne of wheat annually, making it the second largest producer of wheat in the world after China. India is also the second largest consumer of wheat. BARC is awaiting permission from the appropriate Indian agency to send the

mutant varieties for screening and testing to Kenya to check their efficacy. “Given the importance of wheat to India, any threat whether a pest or disease or an abiotic factor is extremely important,” said David Hodson, International Focal Point for the Wheat Rust Disease Global Programme, Food and Agriculture Organisation of the United Nations.

P D Narang, Group Director, Dabur India Ltd said, “Brand Dabur touches millions of Indians every day. Our continual focus on offering our consumers superior quality products at affordable price points has helped us achieve this feat. This award further emboldens our never-ending effort and commitment towards winning hearts & minds of our most valued consumers.” The report was launched by Dr A P J Abdul Kalam, former President of India. He said, “I congratulate Trust Research Advisory on publishing a report of such importance. The depth of this report would help brands understand

and improve trust, the most essential bond in all relationships. I urge India’s top corporate houses to recognise corporate altruism as an intrinsic component in the brand-building process and treat this as a societal entrepreneurship venture rather than as a social responsibility.” The most intensive study on ‘Brand Trust’ undertaken in the country, the study generated nearly 1,000,000 datapoints and 16,000 brands. Indian Statistical Institute helped create a robust ‘Brand Trust Index’, which has been used to hierarchically rank India’s most trusted brands.

Modern Food Processing | February 2011

NATIONAL NEWS EXPANSION

Cobra beer plans capacity expansion

Cobra Beer, which has invested over $ 30 million in India so far, plans to double the production capacity of its Bihar unit within two years and expand business CORPORATE PLANS

Emami expects growth in chyawanprash segment The Kolkata-based FMCG firm Emami is expecting a 15-20 per cent growth in its chyawanprash segment even as it plans to consolidate all its brands under the category. “This year we expect around 15-20 per cent growth in our chyawanprash segment as against a flat growth last fiscal. We have earmarked ` 12-15 crore as marketing spend and are looking at consolidating all our brands,” said Aditya Vardhan Agarwal, Director, Emami. Currently, the segment contributes around 10 per cent to the company’s total revenues. RETAIL INSTITUTE

Coca Cola – ISB Retail Academy introduced

(From L-R) Deepak Chandra, Ahmet C Bozer, Ajit Rangnekar and Atul Singh

In a major boost to capability development in the retail sector in the country, CocaCola India recently signed a Memorandum of Understanding (MoU) with the Indian School of Business (ISB), to establish the Coca Cola - ISB Retail Academy. The

in other states through tie-ups, as per the company’s Founder and Chairman, Karan Bilimoria. “Our Patna brewery can currently produce nearly 2.5 million cases a year. We are about to expand it. In a year or two, we plan to increase its capacity to five million cases a year,” said Bilimoria. He said that the company is planning to expand its business in other states in India through tie-ups and joint ventures. “We started our business in India in 2002. Over the past eight years, we have invested over $ 30 million here. I am looking for more tie-ups in other states. Our aim is to have pan-India presence,” added Bilimoria.

While Cobra owns a brewery in Bihar, it also brews beer in partnership with local companies in several other states like Andhra Pradesh, Orissa, Madhya Pradesh, Rajasthan and Goa. On expansion of its Bihar brewery, Bilimoria said, “It is the only brewery in Bihar. We supply to Delhi and West Bengal from there. The Bihar economy has started growing very rapidly and so has the beer market.” Speaking about his global operations, Bilimoria said Cobra Beer’s joint venture with US brewer Molson Coors had helped the company consolidate its position in the European market.

Emami’s popular brands are- Sona Chandi, Sona Chandi Kesar and Sona Chandi Amritprash. Besides, it has Zandu Chyawanprash and Zandu Kesri Jeevan, which was added to the company’s portfolio post acquisition of Zandu Pharmaceuticals for ` 700 crore in 2008. “This year, the focus will be to push the sales rather than garnering marketshare,” Agarwal said, adding that the growth will be driven by the increase in demand for ayurvedic and health products among consumers. The chyawanprash market is pegged at around ` 400 crore and has recorded a growth of more than l5 per cent y-o-y in value and volume, since 2006-07, mainly

driven by innovations. Of this Emami has a marketshare of 20-22 per cent. The company with its new marketing strategies plans to take on market leaders such as Dabur, Baidyanath and Ranbaxy, which have entered the segment recently, Agarwal said.

initiative is a first-of-its-kind specialised academic programme to educate and train mid-level professionals in the retail sector in India and takes forward the company’s commitment to strengthen the dynamic sector following its successful retail training programme – Parivartan. The announcement was made in the presence of Ahmet C Bozer, Group President, Eurasia and Africa group, The Coca-Cola Company; Atul Singh, President & CEO, Coca-Cola India & South West Asia; Ajit Rangnekar, Dean, ISB; and Deepak Chandra, Deputy Dean, ISB. Making the announcement, Rangnekar said, “The ISB will provide

cutting-edge pedagogy that will help drive the capability of the retail sector in India to world-class competency levels. We are delighted to associate with CocaCola India in developing this premier retail training programme in India.” The Academy will impart a firstof-its-kind specialised academic programme to educate and train mid-level professionals in retail management in India. The first session of the programme will commence in July 2011 with an initial strength of 40 professionals. The curriculum is a 25 day programme spread over a period of six months.

Modern Food Processing | February 2011

NATIONAL NEWS CAPEX PLANS

Ruchi Soya to expand capacity

Edible oil maker Ruchi Soya Industries recently announced that it will invest ` 600 crore to expand its refinery capacity by next fiscal. “We are aiming to expand our palm oil refinery capacity by NEW APPOINTMENT

Kandarp Singh appointed MD - South Asia of Tetra Pak Tetra Pak, one of the leading food processing and packaging solutions companies, recently announced the appointment of Kandarp Singh as the new Managing Director for South Asia Markets. In this role, Singh will be responsible for the Tetra Pak business in India, Bangladesh and Sri Lanka. INNOVATIVE LAUNCH

XXX Energy introduces slimming drink

XXX Energy Drinks Pvt Ltd, one of India’s leading energy drinks companies and a subsidiary of the ` 1,000-crore JMJ Group, recently announced the launched XXX Minus, claimed to be IPR VIOLATION

Kraft sues Britannia over copying of Oreo cookies The US-based packaged food maker Kraft Foods recently sued Britannia Industries for trademark and copyright violations of its popular Oreo cookies. In a suit filed in the Delhi High Court, Kraft said that Britannia’s recentlyintroduced Treat-O biscuit is a copy of its cream-filled sandwich cookies.

1.1 million tonne (MT) by 2011-12 fiscal with an investment of ` 600 crore,” said Dinesh Sahara, Managing Director, Ruchi Soya Industries. Currently, the company has palm oil refinery capacity of 2.1 MT per annum and plans to increase that by an additional 1.1 MT through brownfield expansion at Mumbai, Kandla and Haldia refineries, he said. “We will raise ` 600 crore through internal accruals and debts,” he added.

Ruchi Soya, which has brands like Nutrela Soyumm (soyabean oil), Ruchi Gold (palmolein oil) and Sunrich (sunflower oil), is also in the process of raising palm plantation acreage by 10,000 hectare in the country by this fiscal-end. Presently, the company has 20,000 hectare under palm. Ruchi Soya has been in the process of consolidation and said it has successfully completed the merger of one of its group companies Sunshine Oleochem Ltd with itself.

Singh has spent more than 15 years in the Tetra Pak organisation, serving in markets like the UAE, Switzerland, Italy and Sweden and in his most recent international assignment, was Managing Director of Tetra Recart in Sweden. Singh returned to India in 2009, and has since then held positions of Marketing Director for South Asia as well as Regional Head for Environment in South and South East Asia. “Tetra Pak

South Asia market is in an exciting phase as we see strong growth in these markets in our core categories of ready-to-drink dairy and beverages. This will be largely driven by rapidly changing consumer dynamics,” said Singh.

the world’s first-of-its kind energy drink that combines fat burning capabilities with a burst of energy. XXX Minus contains CarbLite and normal energy drink ingredients, thus enabling weight loss and at the same time offering vitality to the consumer. It has been priced at ` 100. XXX Minus has special formulation blend consisting of nutrients, vitamins, inulin, taurine, ginseng extract, aspertame and acesulfame K. Commenting on the new product, Sachiin Joshi, Vice

Chairman, JMJ Group said, “The world over people spend billions of dollars just on one fixation; to maintain a healthy body mass proportion while enjoying various joys of an active social life. We at XXX Energy Drinks recognised this need of consumers and after a lot of research by our clinical and formulation team ,we struck upon this revolutionary new concept. We are targeting a very niche market of consumers who are health conscious and exacting in their consumption patterns.”

The US firm has also sought an injunction to prevent Britannia from manufacturing, selling, marketing or advertising any product with any distinctive element of Oreo cookies. In its suit, Kraft has sought damages for infringement of trademark and copyright, passing off and unfair competition of its ‘globally reputed’ Oreo brand of cookies. It claimed that Britannia has copied the specific design

etchings, such as florets and inner rings, of Oreo cookies. It also alleged that the brand name, Treat-O, with an emphasis on ‘O’, is inspired by Oreo.

Kandarp Singh

February 2011 | Modern Food Processing

NATIONAL NEWS NEW LAUNCH

Britannia forays into breakfast mixes market

Vinita Bali

Britannia Industries recently entered the ` 500-crore branded breakfast space dominated by players like MTR Foods, HEALTH FOOD

HUL’s Astra Gold to hit the market soon Hindustan Unilever Ltd (HUL) will soon launch a bread spread with high levels of nutritional fats as part of its plan to strengthen its food portfolio. The fat spread, christened Astra Gold, claims to contain three times more essential fats with vitamins A, D, E that will aid growth of children, company officials said. They

GOVERNMENT INITIATIVE

Maharashtra winemakers allowed to open retail shops

Wineries in Maharashtra, troubled by problems of excess stocks, will get some MARKET FORECAST

Milk production to touch record 121.5 MT this year India’s milk output is expected to touch 121.5 million tonne (MT) in the current year, translating into a growth of 4 per cent vis-à-vis the previous year, according to a US Department of Agriculture (USDA) report. “India’s milk production in 2010 is expected at 117 MT and is forecast to increase

Kellogg India, PepsiCo and Marico. The company has launched Britannia Healthy Start, a range of ready-tocook breakfast mixes consisting of upma, poha, porridge and oats. According to the company press release, the breakfast range is fortified with multi-grains, vegetables, pulses and nuts and takes only 5 minutes to cook. It is priced between ` 33 and ` 45 for 150-170 gm packets. Britannia is focussed on healthy snacking

options, and the company sees this move as a natural extension of its biscuits and bakery product line. “Our research showed that Indian consumers wanted breakfast solutions that combined convenience, health and taste,” said Vinita Bali, Managing Director, Britannia Industries. Marico recently entered the branded breakfast space with Saffola Oats and cereal maker Kellogg India launched Heart to Heart Oats.

added that, HUL will focus on offering healthy choices like reducing trans fat and sugar. The product will first be launched in Karnataka, before it is taken nationwide. HUL will focus on firing up its basket of food brands in 2011 to bring the share of food business in its turnover closer to parent Unilever’s levels. HUL’s beverages, foods and ice creams businesses account for only

18 per cent of its ` 17,524 crore revenues, while Unilever earns 50 per cent of its $ 10.1 billion revenues from foods. Expectations are higher now. With modern trade taking off, Indian consumers are now willing to experiment and spend on convenience foods.

respite now. The State Excise Department has permitted wine manufacturers to set up their own wine shops in the state. “The move is expected to help wineries directly interact with customers, thereby bringing down the prices of wines in the state,” said Vijay Chinchalkar, Superintendent, Excise Department, Maharashtra. The decision comes in the wake of a meeting held by the wine industry with Sharad Pawar, Union Agriculture Minister to look for ways and means to promote the sale of wine. With this

move, winemakers can do away with middlemen and directly sell their brands to the customers. According to Jagdish Holkar, President, All India Wine Producers Association, this decision will not only remove marketing barriers but also bring prices down by ` 150-300 per bottle. Wineries such as Sula Wines already have winetasting rooms in their vineyards. Others like UB’s Four Seasons Wines and Zampa Wines have plans to start wine bars across the state.

approximately 4 per cent to a record 121.5 MT in 2011, reflecting a near normal monsoon,” the USDA said in the report. Earlier the USDA had projected that the production of milk would amount to 113.5 MT in 2010. However, it later revised the estimate upwards to 117 MT on account of the good monsoon last year, which led to increased availability of fodder for

cattle. “Liquid milk production in 2010 is revised to reflect greater than 4 per cent growth over 2009 production due to a strong monsoon and related good fodder availability,” the report said.

Modern Food Processing | February 2011

NATIONAL NEWS DAIRY BUSINESS

Danone eyes acquisition of Dumex India

French food group Danone, which is scouting for acquisitions in India, is reportedly eyeing baby food maker Dumex India as a possible target. FOOD PARK

Pune may become food processing hub Around 24 food processing plants will soon be set up at Purandar taluka in Pune district. The project is part of the Baramati Vikas Abhiyan introduced by Supriya Sule, Member of Parliament. The total investment for this project is around ` 6 crore. The project has been undertaken to create employment

Danone, one of the leading fresh dairy product makers, is planning to invest nearly ` 300 crore in the dairy business in India and shift focus to affordable nutrition. In April last year, a WockhardtAbbott deal to sell nutrition business formalised in July 2009 had fizzled out. Abbott had agreed to buy Wockhardt’s nutrition business for an estimated ` 625 crore, but the deal had fallen through on account of

Wockhardt’s inability to resolve debtrestructuring issues with some of its lenders. Wockhardt’s portfolio included nutritional brands Protinex and Farex. Dumex India could be a natural target for Danone, which already owns most Dumex operations in Asia, as part of its acquisition of Dutch baby food group Numico in 2007. Earlier, Danone merged with Russian dairy group Unimilk, securing 21 per cent of the fast-growing Russian dairy market.

opportunities in small-scale industries based on agricultural produce. These plants would be a source of income to the farmers. Each processing plant will employ at least 20 people. Around 2,050 hectare in Purandar is under plantation of custard apple and another 3,100 hectare under tomato. “Custard apple flavoured rabri and ice cream are in great demand across cities in India. The processing plants will

manually separate the pulp & seeds of the fruit and the pulp will be supplied to cities, mainly to sweet marts and caterers,” said Sunil Borkar, Deputy Director, Department of Agriculture.

February 2011 | Modern Food Processing

WORLD NEWS ACQUISITION

DuPont to acquire Danisco for $ 6.3 billion

DuPont has entered into a definitive agreement to acquire Danisco, a global enzyme and specialty food ingredients company, for $ 5.8 billion in cash and SUPPLY CHAIN

Tetra Pak installs new traceability technologies for Brazilian milk brand Brazilian food cooperative Aurora has bought new traceability technologies from Tetra Pak for the launch of a UHT milk brand. Based on the latest version of the Tetra PlantMaster software suite, Tetra Pak claims the new system offers significant benefits for both Aurora and its customers. For the food processor, it allows

NEW FACILITY

Bericap opens new facility in Singapore

Plastic closures specialist Bericap has opened a new production facility in Singapore to fuel further expansion in ACQUISITION

Cargill acquires German chocolate business Cargill is reportedly acquiring a German chocolate business, as part of the company’s wider plans to expand further into Europe. Schwartauer Werke Kakao Verarbeitung Berlin (KVB) is a businessto-business (B2B) supplier of chocolate and semi-finished cocoa products. The company said that KVB’s two Berlin

assumption of $ 500 million of Danisco net debt. Upon closing, this transaction will establish DuPont as a clear leader in industrial biotechnology with scienceintensive innovations that address global challenges in food production and reduced fossil fuel consumption. “Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth. It has attractive,

market-driven science businesses that offer clear synergies with DuPont nutrition & health and applied bio-sciences,” said Ellen Kullman, Chairman & CEO, DuPont. She further added, “This transaction is a perfect strategic fit with our growth opportunities and will help us solve global challenges presented by dramatic population growth in the decades to come, specifically related to food and energy.”

real-time monitoring and complete automation control so that problems on the production line can be quickly identified and resolved. Tetra Pak claims that the technologies also make it easier to comply with regulations and product certification requirements. And for consumers, the system permits each carton to be stamped with an individual code that gives webbased information on the origin, processing and packaging of a

product. This means that consumers have access to information about each individual milk product and not just a production lot. Aurora is one of the largest food companies in Brazil and is organised as a cooperative with more than 70,000 families providing & preparing raw materials for its products.

South East Asia. Initially, the new factory will produce closures for applications outside of the food and beverage (F&B) sector but production of F&B closures will follow shortly afterwards. Bericap said the Singapore plant is equipped to manufacture the one-piece closure technology DoubleSeal for carbonated beverages or hot filling. This includes the DoubleSeal SuperShorty for PCO 1881 and the DoubleSeal 38. Another product to be

produced in Singapore is a hinge closure for bottlers of soya sauce. This requires anti-drip features, tamper evidence and a closure design for capping of hot filled glass bottles. A spokesperson for Bericap said the first food applications to be worked on at the plant will be edible oil and then carbonated soft drinks and water will follow. But the first products to be produced at the Singapore plant will be for a multinational player in the agro-chemical business.

plants will complement its existing German cocoa and chocolate facilities in Klein Schierstedt and Hamburg. Jos de Loor, Head, Cocoa and Chocolate business, Cargill, said that the KVB acquisition will strengthen Cargill’s position in Germany, the largest chocolate market in Europe, and create opportunities to widen its geographical reach. He further added, “We plan to invest significantly in KVB’s

facilities to create a superior chocolate house that will enable us to offer customers greater choice, higher quality and extended market reach.” Cargill has been active in Germany since 1955 and has around 1,600 employees in 12 locations in the country.

Modern Food Processing | February 2011

WORLD NEWS NEW FACILITY

Linden Foods opens new meat processing facility

Northern Irish firm Linden Foods has opened a new meat processing facility, which will help create new jobs over INVESTMENT

PepsiCo boosts investment in coconut water PepsiCo has increased its investment in Los Angeles based ONE (One Natural Experience), acquiring a majority stake in the company. This represents a second round of investment in ONE by PepsiCo and Catterton Partners, a private equity firm based in Greenwich, the US. “We are excited to deepen our relationship with PepsiCo and Catterton Partners. With

MARKET FORECAST

Global dairy market to remain tight in 2011, says Rabobank

The global dairy market is likely to remain tight in 2011 due to an improvement in NEW EXHIBITION

US bakers announce new show for October 2011 The Retail Bakers of America (RBA), American Bakers Association (ABA), and Bakery Equipment Manufacturers & Allieds (BEMA) announced the launch of their new industry event, ‘All Things Baking’, at the International Baking Industry Exposition (IBIE) in Las Vegas. Capitalising on the success

the next three years. The Dungannonbased company produces processed beef & lamb under the Banquet Royale, Tasti and Chef Class brands, & also makes private label products for retail & foodservice customers including M&S, McDonald’s, Tesco and Bird’s Eye. The new 5,740 sq mt premises is adjacent to Linden Foods’s existing processing site. The cutting-edge facilities include an innovation centre with a developed kitchen, production

and dispatch areas. The firm predicts it can increase sales by 32 per cent in the near future as a consequence, mostly to markets outside Northern Ireland. “Our business strategy remains focused on innovation. We are committed to providing our customers with a range of exciting new products that are well ahead of current trends within the food retailing sector,” said Gerry Maguire, Managing Director, Linden Foods.

demand, supply, distribution, consumer education and the capital to fuel them all lining up, we expect 2011 to be the year that coconut water goes mass market,” said Rodrigo Veloso, Founder and CEO, ONE. Massimo d’Amore, CEO, PepsiCo Beverages Americas, added, “Coconut water is one of the fastest growing categories in the US beverage market and one in which we see a great deal of potential. Our investment in ONE is

an investment in the future.” Supply had been a limiting factor for coconut water producers in 2010, but ONE has successfully addressed the issue by developing strong partnerships with three of the largest coconut processors in the world.

demand but limited supply, according to Rabobank. The bank said in its ‘Global Dairy Outlook’ report that although consumption rates are set to be strong in 2011, growth in some regions will be constrained by physical limitations of supply. According to Rabobank, drought in Russia and floods in Pakistan will heavily impact local milk production in the first half of 2011. While these conditions are likely to create increased demand for

imports, the bank said that domestic consumption was likely to be restricted. Consumption is expected to be supported by improving labour markets in the West, strong economic growth in import regions and strong buying in China. Factors affecting supply levels include higher feed costs, ongoing requirements of farmers to reduce debt levels and the likelihood of limited supply growth beyond New Zealand.

of their collective partnership in managing and producing the triennial Baking Expo, the three industry associations are creating a new, national trade show that will serve as the industry’s annual marketplace, meeting place, and educational forum during the 2-year gap in the IBIE rotation. Launching on October 2-4, 2011, at the Renaissance Schaumburg Hotel and Convention Center in

Schaumburg, ‘All Things Baking’ will have educational and exhibit offerings focussed on baking and foodservice professionals on the leading edge of consumer trends.

February 2011 | Modern Food Processing

WORLD NEWS MARKET DEMAND

Vegetable oils market to reach 169 million tonne by 2015

RESEARCH & DEVELOPMENT

NIZO food research and MARDI sign agreement Europe-based NIZO food research and the Malaysian Agricultural Research & Development Institute (MARDI) have signed a contract research agreement to develop together functional food & beverage products derived from Malaysia’s agro by-products. These local agro by-products have been subjected to extensive research done by MARDI

MARKET RESEARCH

Singaporean F&B companies in China expect strong growth in 2011

More food and beverage (F&B) companies from Singapore are expected EXPORT

Turkish food and drink exports surpass $ 6.5 billion Turkey’s total food and beverage exports surpassed $ 6.5 billion in the past 12 months. Rint Akyüz, Deputy Chairman, Federation of Turkish Food and Drink Industry Associations (TGDF), underlined that the food and beverage sector, excluding the agriculture sector, clinched an export

The US-based GIA, publisher of offthe-shelf market research, said that the global market for vegetable oils had been forecast to reach 169 million tonne by 2015. Recently, the researchers have announced the release of a global report on vegetable oils market. According to researchers, “Key factors fuelling market growth include recovery from economic recession, increasing global population, growing demand from

emerging markets backed by strong economic growth, and increasing standard of living.” Vegetable oil market is extremely vulnerable to vagaries in the economic, agricultural and trade policies, and the recent economic downturn was no exception, which led to a brief slowdown in the world market. The global crisis resulted in difficulties for the oil and fat industry.

over the past years because of the interesting functional compounds they possessed. NIZO would bring in its core expertise of fermentation using lactic acid bacteria isolated by MARDI from local environment and from NIZO’s own unique culture collection as well as probiotic bacteria that were expected to have the ability to fortify the end products. The project will cover improving functionality, taste & texture, and identifying anti-microbial properties

& growth stimulations properties of the foreseen products. Several phases of this project have been envisaged, where at the end of the project MARDI would be able to up-scale a cost-effective fermentation process using Malaysia’s agro by-products.

to head to China and their numbers are expected to grow by 10 to 20 per cent this year as per industry experts. International Enterprise (IE) Singapore estimates that there are currently about 40 Singaporean F&B companies present in China. While the number of F&B companies have grown due to strong consumer demand, experts say companies should keep a close eye on rising costs and inflation

on the mainland. China has just released its 2010 full year inflation, which hit 3.3 per cent and it is expected to grow around 4.9 per cent during this year. Singapore’s Bee Cheng Hiang made nearly $ 23 million from its 65 stores in China last year and expects a 20 per cent jump in revenue this year. And to remain profitable in times of rising wages, it aims to improve productivity by investing in new facilities.

figure of $ 6.5 billion in the past 12 months. He further added, “Out of total exports, $ 3.38 billion were to the European Union (EU). Our exports to the EU are twice our imports from this region. Most of these exports are processed products. Turkey has been able to ensure the quality of its food products and beverages. You can see Turkish products in markets all around the world today.” The food

and drink sector is one of the largest in Turkey’s economy. It is also important in terms of providing jobs for more than 4,80,000 people.

Modern Food Processing | February 2011

WORLD NEWS BAKERY

Maxx Performance opens new facility

Microencapsulation specialist Maxx Performance has opened a new R&D and manufacturing facility in Roanoke, US. The new facility will help it enhance PROCESSING

Unilever to create ‘green energy’ at ice cream factory Unilever will create ‘green energy’ at its Ben and Jerry’s ice cream factory in Holland by installing a bio-digester, which converts natural waste products into gas. The food giant, together with Paques, a producer of water and gas purification systems, has started the construction of a bio-digester at Unilever’s ice cream factory in

FOOD PACKAGING

Octal expand PET resin capacity

Packaging producer Octal has reportedly secured a $ 296 million loan to complete its second expansion phase. Phase two of the plan will be STRATEGIC DECISION

Wal-Mart launches healthy food effort Wal-Mart Stores Inc plans to reduce the amount of sodium, added sugars & trans-fatty acids in specific categories of private label and national brand food & beverage products it sells in its stores by 2015. The company also announced it is working to lower the price of the fruits and vegetables it sells in its stores.

the cooperation with customers for formulation scale-up. The facility will be located in the former Valley Rich Dairy building on Aerial Way Drive. Dr Winston Samuels, President and CEO, Maxx Performance, said, “Our new Virginia-based facility will house a stateof-the-art application test centre where customers can evaluate our ingredients in their products and develop formulations that can be scaled up. It will also allow us to work with the brightest minds at

Virginia Tech to innovate more of the practical applications our customers need to succeed. By locating our facility in Roanoke, it allows us to give back to the region some of what was given to us while we were students at Virginia Tech.” Maxx Performance is known for delivering value & growth for well-developed products & technologies that improve health and wellness, and make food & nutrient consumption a more enjoyable experience for consumers.

Hellendoorn, the Netherlands. According to Paques, its bio-digester will cover 40 per cent of the factory’s green energy requirements. Unilever claims to be one of the first companies worldwide to use this type of bio-digester, the BIOPAQ AFR (Anaerobic Flotation Reactor). In the digester, wastewater is purified by converting waste products from ice cream production such as milk, cream, proteins, syrups & pieces of fruit, and converting them into biogas.

The technology is expected to become operational at the factory in mid 2011. Rudi van der Arend, Sustainability Programme Manager, Ben & Jerry’s, informed that Unilever plans to install the digesters at its other plants too.

commissioned from June 2012 and will add an additional 5,27,000 Metric Tonne (MT) of production at Octal’s PET resins and sheet packaging complex in Salalah, Oman. The 4,00,000 MT facility was opened by the company in January 2009. Octal said that it is strategically located outside the Straits of Hormuz to serve Eastern and Western markets with PET resin for products such as soft drinks and bottled water. The company

also supplies these markets with PET sheet for thermoforming for clear rigid food and consumer packaging applications. “The company’s international office network currently spans the UK, Germany, China, Oman and the US with an additional customer support office planned to open in Europe in 2011,” said Nicholas Barakat, Managing Director, Octal. The company is predicting dramatic sales growth over the following two years.

“No family should have to choose between food that is healthier for them and food they can afford. With more than 140 million customers each week, Wal-Mart is uniquely positioned to make a difference by making food healthier and more affordable to everyone,” said Bill Simon, President & CEO, Wal-Mart - US. In its announcement, Wal-Mart committed to eliminating all industrial trans fats from its store brands; to reduce

added sugars by 10 per cent in key categories of food products; and reduce sodium by 25 per cent. All of these efforts will be accomplished by 2015, according to the company.

February 2011 | Modern Food Processing

TECH UPDATES

GEA Niro develops drying process for aloe vera

PepsiCo working on technology to extract water from potatoes for processing

GEA Niro has developed a process to spray dry aloe vera for use in the food industry. Until now the therapeutic plant has been dried naturally in the sun, a fairly crude process with limited uses, or has undergone an extensive and expensive preparation for freeze drying for pharmaceutical use. The new process bridges the gap providing a high quality powder that is suitable for use in personal care, nutraceutical and food products. Spray drying will provide an efficient and economic option for those looking to use the final dried product as a functionality enhancing agent for yogurts, dressings and drinks. Robert Djernaes, Food Sales Group Manager, GEA Niro, explained that the new process will make aloe vera much more accessible to a wide range of industries. “The spray dried powder is ideal for use in all products, and the spray drying process has lower operation costs compared to freeze drying. We are confident that the process will be widely used throughout the food and personal care industries.”

PepsiCo is reportedly working on a technology that can extract water from potatoes for reuse in processing. The maker of the Walkers crisp brand, in its dissemination of its progress on its original environmental sustainability pledges, said it hopes to scale up the innovative technology and share it with its developing markets. According to the company’s green goals review, “Typically 80 per cent of a potato is water. Previously, this water was lost during the cooking process but we are now looking at how to capture this water and use it to clean potatoes before they are cooked. Once perfected, we will begin rolling out this technology to our four crisp manufacturing sites.” The new technology is likely to help PepsiCo UK and Ireland achieve its pledge of unplugging its largest sites from the water mains by 2018. PepsiCo UK claimed that its strategy to take its main manufacturing sites off the water grid by 2018 is two-fold – reducing how much water its uses to make its products and changing where it sources its water from. “We are trialling new technologies to identify opportunities to use re-circulated water,” said the Group.

Piab’s new suction cups can increase production efficiency

InMat’s nanocomposite coating can improve moisture barrier performance

Piab has claimed to have developed a new range of suction cups, which can increase the efficiency in picking and placing of small products for packaging manufacturers. The company has expanded its range of Duraflex BX suction cups, which are considered to be more pliable to different materials than conventional suction cups. “The new suction cups offer improved sealing capabilities for products with porous, uneven or textured surfaces, such as medical products and plastic or metal parts, allowing manufacturers to increase line productivity and reduce energy consumption,” said company officials. The three new models come in smaller diameters 10 mm, 15 mm and 20 mm suction cup sizes (models BX10P, BX15P and BX20P). In addition, the cups are available in eight diameters from 10 mm to 110 mm, to handle a wider range of products and applications. According to Piab, manufacturing flexibility is also enhanced by the choice of single-hardness or dual-hardness versions of the cups.

The US-based InMat has reportedly developed a new water-based nanocomposite coating for flexible packaging, which reduces cost as well as improves oxygen & moisture barrier performance. The company claims that its Nanolok WR 20135a provides high oxygen barrier ‘over the widest relative humidity (RH) range currently available in water-based nanocomposites’. A one micron coating will provide an oxygen barrier that performs more than four times as effectively as polyvinylidene chloride (PVDC) coated PET at relative humidity from 0-80 per cent. Its performance is almost twice as good at 85 per cent RH, claimed the firm. Dr Harris A Goldberg, CEO and President, InMat, said that these barrier improvements over the RH range were potentially significant in maximising the performance of flexible packaging to preserve product quality and maintain shelf-life. The company said its technology allows to combine water-dispersed polymers with nano-dispersed clays into stable water-based barrier coatings. Its products are environment-friendly as they contain no solvents or hazardous materials and are appropriate for food packaging applications.

Modern Food Processing | February 2011

TECH UPDATES

Canned tuna producer uses new peel technology for relaunch

Fulton employs wireless technology in packaging to cook soup

Crown Food Europe has developed a new peel technology lid for canned tuna, which can boost ease of open and reuse. The company’s new metal cans address the growing demand for more convenient packaging. Fish canner Jealsa is incorporating Crown’s PeelSeam peelable end on its 150 mm x 65 mm cans for the tuna product line it supplies to Mercadona under the leading Spanish retailer’s Hacendado brand. The PeelSeam peelable ends consist of a thin flexible foil heat-sealed to a rigid steel ring for conventional double seaming onto standard containers. The can features a recloseable plastic lid, which reportedly facilitates reuse. Laetitia Durafour, Marketing Manager, Crown Food Europe, said “With our innovative end, Mercadona is able to offer its consumers a packaging solution that adds value on the shelf by being easy and quick to open. High quality graphics can also be printed on the peelable lid to enhance visual appeal and further differentiate the brand.” Crown said that no adjustment to tooling or seaming processes is required for the technology.

The subsidiary of Alticor Corporation, Fulton Innovation, has developed soup packaging that cooks its contents without any external heat source – that means no need for a microwave or hob. The new packaging uses the company’s eCoupled wireless technology. The soup container features charging technology printed onto the packaging. This allows the consumer to cook the soup by just placing the pack on a wireless charged work surface and choosing low, medium or high temperature. In addition, Fulton has developed an eCoupledintegrated cereal box that allows consumers to manage and monitor their food wirelessly through a PC or mobile phone. This means keeping tabs more closely on nutritional information, quantities and use-by dates. Fulton has claimed the technology is more secure and has better standards than RFID. Fulton’s wireless technology can be used in a broad range of applications and industries including automotive, consumer electronics, home interiors and packaging. Pike Research predicts that the wireless charging and transmission market, which is currently worth less than $ 1 billion, will touch $ 12 billion in the next 10 years.

Scientists develop new technology for testing shellfish product safety

High pressure processing enhances ice cream production performance

Scientists at Queen’s University Belfast have reportedly developed a new technology, which promises to turn the testing and safety regime for shellfish products on its head. The biosensor-based tests for potentially dangerous toxins in shellfish are claimed to be significantly faster, cheaper and more reliable than existing methods, stated Prof Chris Elliott, the Project Leader. He said that scientists were also able to detect a far wider range of shellfish toxins. He claimed, “Toxins in shellfish are a complex family. High Performance Liquid Chromatography (HPLC) tests can detect most of them, but our methods can detect all of them.” The method developed by Elliott’s team involves dipping shellfish samples into a bath of water and adding unique ‘detector proteins’, which seek out and lock onto toxins in mussels, oysters, cockles and scallops. “If the proteins bind to a toxin they give off a signal that we can detect simply by putting a dipstick into the water and looking for a colour change. The results are delivered in less than 10 minutes at a fraction of the cost,” said Prof Elliot.

As per a study published in International Dairy Journal, high pressure (HP) processing may enable ice cream manufacturers to reduce the use of additives and make better low fat products. Scientists from University College Cork, Nizo Food Research and the University of Guelph, sought to assess the effects of HP treatment on ice cream & discover the mechanisms responsible for the changes. HP processing is increasingly popular as a food preservation and sterilisation method, but has only recently attracted the attention of scientists as a tool to improve the functionality of milk proteins. The new study indicates that HP treatment could have several important benefits for ice cream manufacturers like improvement of reduced-fat ice cream and the possibility of making products without the additives that are normally included to prevent ice crystallisation. HP treatment may also allow ice cream manufacturers to cut raw material costs by reducing the protein content without compromising texture or mouthfeel. These benefits are a result of the increased viscosity and higher resistance to melting induced by the HP processing.

February 2011 | Modern Food Processing

LEADERS SPEAK

“Ready-to-eat meat products of Indian origin are gaining popularity in global markets” …says Sirajuddin Qureshi, Managing Director, Hind Group of Companies. An emerging entrepreneur, he conceptualised and established a 100 per cent export-oriented meat processing plant of Hind Industries Ltd in Sahibabad, Uttar Pradesh, in 1990. Further, in 1998, a modern state-of-the-art abattoircum-meat processing plant was set up in Aligarh, UP. The venture proved to be a big success, both in terms of volume and production of high quality meat & meat products. In conversation with Prasenjit Chakraborty, Qureshi discusses the performance of meat processing industry in India.

Performance of Indian meat industry

Export potential of meat industry

The annual meat production in India is currently estimated at 6.3 million tonne amounting to about ` 35,000 crore. The contribution of beef is about 30 per cent, buffalo meat 31 per cent, chevon 10 per cent, pork 10 per cent, sheep 5 per cent and poultry 14 per cent. The meat production is growing at about 4-5 per cent annually. Sheep, goat and poultry are reared primarily for meat production, whereas beef and buffalo meat are the byproducts and are secondary to dairy production & draught-related purposes. When these large animals are no more useful for these purposes, they are slaughtered to produce meat. The Indian meat industry has been doing well in the last few years. The growth is mainly attributed to large livestock population constituting about 315 million cattle, 105 million buffaloes, 140 million goats, 57 million sheep, 18 million pigs, and 1,049 million poultry animals in India.

India has sizeable buffalo population. The surplus buffalo meat is exported to Southeast Asia, Gulf & Middle East countries, Africa and CIS countries. India exported 513.668 MT buffalo meat valued at ` 58,307 million and 52.868 MT sheep/goat meat valued at ` 7,472 million during 2009-10, according to Agricultural & Processed Food Products Export Development Authority (APEDA). The export is increasing at an annual rate of 8 per cent, with a major share of buffalo meat, followed by sheep, goat and poultry.

Modern Food Processing | February 2011

Challenges faced by the industry Meat is a sensitive area associated with certain social taboos. It is observed that a large percentage of the Indian population is nonvegetarian, but they have a negative outlook when it comes to development of modern abattoirs, and consumption of processed meat & meat products. In view of the tropical climate in

LEADERS SPEAK

the country, most of the non-vegetarian population is habituated to eating fresh meat. However, of late, there has been a gradual change, but it will take a long time for the Indian consumers to move in the footstep of their Western counterparts where they consume processed meat and meat products on a daily basis.

Emerging trends and hurdles in meat processing sector Ready-to-eat (RTE) meat products of Indian origin – red meat, mutton and chicken curries, biryani, tikkas, etc, are gaining popularity as one-time serving in the global markets, such as the UK, the US and Europe. A similar trend is likely to emerge in India where consumers in urban areas and metropolitan cities, especially working couples, prefer RTE foods and throng eateries as they have little time to prepare food. With the increase in purchasing power, the demand for

meat products is bound to rise, both in terms of red meat and poultry, among the middle & upper middle class population. The major challenges faced by the meat and poultry processing industry are pertaining to safety and quality. In the case of poultry, there is prevalence of avian influenza, which is impacting both the Indian and foreign markets. Similarly, in the case of meat, unhygienic slaughter houses pose a health hazard to the domestic meat industry. The Food Safety and Standards Authority of India (FSSAI) established in 2009 in close collaboration with Ministry of Food Processing Industries (MoFPI), is focussing on the challenges being faced by the industry.

Latest developments There are welcome emerging trends in local brand names. For example, in poultry, Venky’s, Suguna, Godrej Real

Good, etc produce quality and safe meat in modern plants, with valueaddition to the products. The Delhi-based Fast Trax fast food chain has also introduced quality RTE foodstuffs in the poultry meat category conforming to food safety standards, while at the same time suiting the pockets of general consumers in urban and metro cities, thereby giving strong competition to MNCs like McDonalds, KFC, etc.

Industry outlook There is good potential for the export of bovine meat and poultry products, apart from sheep and goat meat. However, the prospects for export of sheep and goat meat are not too huge, because of the high domestic demand. The future of Indian meat industry appears bright as a result of government initiatives and support provided to the private sector by APEDA, FSSAI and MoFPI.

Business Insights •Technologies•Opportunities

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ROUNDTABLE

Budget 2011-12

Can it live up to the expectations? Thanks to good monsoon this year, the agriculture and allied sector grew by 3.8 per cent in the first half of the 2010-11 fiscal, against a mere one per cent the year ago. However, high food inflation remains a challenge. Amid this state of affairs, Finance Minister has begun consultations for the Budget 2011-12 with stakeholders in the agriculture and food processing sector. Rakesh Rao and Geetha Jayaraman interacted with some of the experts to know their wish-list for the Budget.

Sanjeev Gupta President, Agro & Food Processing Technology & Equipments Association of India (AFTPAI) AFTPAI has suggested the government to provide exemption in import duties of machinery & raw materials for a certain period and 100 per cent tax holiday from State & Central government departments for new food processing units. This will not only help food processors to cut their investment cost but also help in generating large-scale employment for the youth and the farmers in the rural areas. The government should ask banks and other financial institutions to offer long-term loans for all supply chain and cold chain projects at a low interest rate of 6 per cent, besides giving the food processing industry (FPI) a priority sector status. Excise Duty/Countervailing Duty (CVD) on local/imported machines and equipment should not be levied as this directly increases the cost of the machines. Most food products are not excisable, and hence the processors cannot Modvat the duty on inputs. This results in higher MRP of the food products. The government also needs to control inflation up to some

extent when it comes to food products. AFTPAI has urged the government to grant fiscal incentives by way of higher percentage depreciation on all investments in physical assets like plant & machinery and other investments on cold chain, lab and effluent treatment plants, etc in the entire agri-value chain. The government should appropriately change priority sector lending norms to include private sector investments made by corporate firms in agri-infrastructure â&#x20AC;&#x201C; such as supply chain and cold chain â&#x20AC;&#x201C; in the direct finance category of priority lending. They should also be eligible for 150 per cent weighted deduction as is the case with investment in R&D. Besides, the government should provide 100 per cent financial assistance in setting up Centres of Excellence for Food Technologies (CEFT) for machinery, equipment, food ingredient and food safety solution providers.

February 2011 | Modern Food Processing

ROUNDTABLE

Piruz Khambatta President, All India Food Processors’ Association (AIFPA), and CMD Rasna Pvt Ltd The Budget should focus more on food processing, as this segment can lead to inclusive development of rural India and support growth in agricultural GDP, which is India’s biggest challenge. The government should take lead to reduce Central Excise Duty on all food products to at least 5 per cent. The government should encourage more

N Thiruambalam Chairman and Managing Director, Heinz India Pvt Ltd The Ministry of Food Processing Industries has taken many positive steps for promoting food processing, however, a lot needs to be done if we are to derive the full potential of our agro industry through food processing. The ensuing Budget should focus on accelerating the growth of the

K S Narayanan Managing Director, McCain Foods India Pvt Ltd The Budget should continue to exempt all perishable goods from Excise Duty and other levies. VAT on all processed foods should be uniformly levied at 4 per cent; however there are some states with VAT ranging from 5 to 15 per cent. In order to accelerate growth of the food processing industry and the frozen food segment, cold chain infrastructure should be strengthened. This can be done through support to develop a modern cold chain

Modern Food Processing | February 2011

units to come up in food parks by extending tax benefit as has been given in North East under Central Excise and Service Tax. Advertising and marketing expenses incurred to promote products abroad should be allowed double deduction under Income Tax. This will encourage companies to make these expenditures, which will help the industry grow and make India a food factory of the world. Exports should be encouraged in a big way for all processed foods. There is an urgent need to increase budgetary allocation to Ministry of Food Processing Industries (MoFPI) in a quantum manner. The present size is meagre for a sector of this size. Under the aegis of MoFPI, there should be venture capital fund, which will take equity in small and medium companies.

food processing industry through sustained and consistent policy on tax rates, be it direct or indirect taxes. Moderate tax rates should be aligned with progressive countries – thrust should be on low level of taxes but high level of compliance and strict enforcement of FSSA without bias. Introduction of GST at the earliest with clear understanding and agreement with all the states for uniform roll out, thereby avoiding duplicity of tax rates (such as mandi tax, entry tax, etc). The Budget should give encouragement to the food processing industry through fiscal incentives. It should encourage contract farming on pilot basis without affecting the livelihood of small and marginal farmers.

infrastructure (cold rooms and reefer trucks) through tax exemptions and reduction in duties on imported cold chain equipment. The MoFPI should provide assistance to companies that are undertaking research & development projects, which will aid the whole industry in a generic manner. This will enable to spend more money on R&D, which is the need of the hour. Processed food industries attract considerable tax on packaging materials. Even though the overall finished product is exempted from taxes, the duty on packaging material has a domino effect, with the duty being passed on to consumers. It is the consumer who ends up paying for the overall cost of the product. Companies should be exempted from taxes in terms of packaging materials.

ROUNDTABLE

Sanjay Desai Executive Director, Desai Brothers Ltd The budget should make it mandatory for food companies to validate health claims. Nutraceuticals, functional foods and health supplements have been classified as food under the Food Safety and Standard Authority (FSSA), but further streamlining is necessary. The accelerated growth in the prices of fruits and vegetables can be prevented by controlling food wastage. In order to accelerate growth of the food processing sector in India, agriculture needs to grow faster. Moreover, it is essential to ensure that products exempted from excise duty continue to remain so. In addition, all capital purchases for food processing industries should be given 100 per cent accelerated

P L Kaul Chairman and Managing Director, Mariental India Pvt Ltd We do not expect much from the Budget 2011-2012 in the form of any special concessions or considerations that will benefit the FPI per se or any alluring incentives to promote its growth. The Central Government is besieged with a lot of economic strangles. The government does not retain a concrete and consistent policy over a period that could promote the growth of this vital sector of the Indian economy. The FPI, which operates mostly in the SME sector, is already facing an eclipse and is shortly going to be usurped by MNCs with their own brands. The Budget should allow duty-free import of technology and the critical process plant equipment for new

M A Tejani Managing Director, Gits Food Products Pvt Ltd There are few things the government should take into consideration during the Budget 2011-12. Import of all kinds of food processing and packaging machinery should be completely exempted from import duties, ie basic duty, Special Additional Duty (SAD), Excise Duty, CVD, etc. With respect to food processing and packaging machinery imported during last three years, ie on and from April 1, 2007, the export obligation should be waived off. Export obligation of finished goods pertaining to imported packaging material under advance licence needs to be simplified, especially for SMEs. Refund of Excise

depreciation under Income Tax, so that the industry can avail of new machines, which will improve competitiveness. There is a need to have a comprehensive supply chain and cold chain policy and subsidy for processed food & beverage industry. As Goods & Services Tax is now delayed, at least VAT on all food products should be charged at a common rate of 4 per cent across the country. Many states have arbitrarily increased VAT to 12.5 per cent and even 15 per cent.

units. It should also facilitate the technical upgradation of the existing units. The Income Tax benefits for the new ventures in FPI should also be made available for the existing units along with incentives for capacity expansion and modernisation. The government must realise that the only solution to get the problem of price rise in food commodities addressed is by protecting and promoting new ventures in the different segments of the Indian FPI sector.

Duty on packaging materials pertaining to processed foods exported out of India calls for simplification. Instead, only the quantity of actual packing materials used in export of goods as stated in the export invoice should be eligible for refund. To determine the cost of the packing materials and excise thereon, the purchase invoice covering the purchase of packing materials should suffice.

February 2011 | Modern Food Processing

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INDUSTRY UPDATE

Food processing industry has emerged as one of the sunrise sectors in India where Small and Medium Enterprises (SMEs) could play a vital role in fulfilling various socio-economic objectives, such as employment generation and export promotion, besides fostering entrepreneurship. Despite several factors ranging from unrealistic government approach to dearth of skilled manpower marring the growth prospects of SMEs, entrepreneurs are showing their mettle by changing their business strategies. However, a few proactive initiatives from the government are imperative to make the SME segment truly vibrant.

Modern Food Processing | February 2011

INDUSTRY UPDATE

Prasenjit Chakraborty

he food processing sector in India serves the vital function of linking the agricultural and industrial segments of the economy. It has the potential to transform the rural landscape of India by improving the value of agricultural produce, ensuring better remuneration to farmers, and at the same time, creating favourable demand for Indian agri-products in the world market. Emergence of organised food retail, consistent export growth, along with growing urbanisation, increasing disposable income, and changing lifestyles & food consumption patterns are key factors driving the growth of processed foods in India. The industry is expected to move up the growth curve quickly, considering the nascent levels of processing at present, and investment in this sector has been on an upswing. Small and medium enterprises continue to constitute a major presence in the sector and will drive many of the changes, if few vital issues are addressed soon. Infrastructure hurdles, supply chain problems, financial assistance-related issues, unfavourable government policies, etc are the major stumbling blocks hindering the growth of SMEs in food processing sector in India.

M Balasubramaniam Director, Garden Namkeens Pvt Ltd

In my view, the issue that needs to be addressed first is quality. The quality of agricultural raw materials, especially perishables, deteriorates due to various reasons and unhygienic handling of the same. The second and equally important issue is price.

Anil Bhardwaj

Agri-products segment The prices of agricultural raw materials have increased manifold in the past two years, which is affecting the performance of food processing companies, especially SMEs. A conservative study on farm wastage indicates that close to 810 per cent of the produce can be saved, if the farm produce is properly processed and transported, which will help the farm output to go up by 8 per cent without any efforts towards improvement in productivity. This calls for a radically different approach in connecting the farm and factory. There is a vast gap between farm gate and the factory gate when it comes to quality and cost. On this issue, M Balasubramaniam, Director, Garden Namkeens Pvt Ltd, opines, “In my view, the issue that needs to be addressed first is quality. The quality of agricultural raw materials, especially perishables, deteriorates due to various reasons and unhygienic handling of the same. The second and equally important issue is price.” For example, a farmer in Ujjain gets Rs 5 per kg for guava produced by him and the consumer in Mumbai pays Rs 70 for the same. “The gap is little narrow in terms of non-perishables like cereals, pulses, spices and oil seeds, nevertheless still significant. Bridging this gap is a tedious task, as there are many bottlenecks in the chain,” he points out. According to Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME), there are two elements responsible for the current plight – infrastructure and policyrelated issues. “As far as policy is concerned, it should provide access to adequate, efficient and affordable infrastructure,” he says. In addition to this, the agriculture sector has to change its archaic policy framework, which puts huge burden on pricing, movement and storage of agriproduce. There are several other

Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME)

The agriculture sector has to change its archaic policy framework, which puts huge burden on pricing, movement and storage of agri-produce. There are several other policyrelated issues that need to be revisited and resolved. policy-related issues that need to be revisited and resolved like quality standards, technological domains such as genetically-modified (GM) food products, foreign investments, contract farming, etc. It is also imperative to re-invigorate the farm R&D and farm management support. “It has been more than 30 years since we had major R&D breakthroughs in new technologies and management practices,” laments Balasubramaniam. This should be a national priority like the National Rural Employment Guarantee Act (NREGA). Citing an example, he says

February 2011 | Modern Food Processing

INDUSTRY UPDATE

Strengthening supply chain Land prices, high interest rates and import duty rates pose as deterrents in setting up industry. “The government should consider this seriously and allot land at preferential rates to entrepreneurs with proven track record. But while doing so, a special consideration should be given to SME sector to ensure a widespread growth, which will help develop the industry even more rapidly and bring in fresh ideas & products to the growing segment,” opines Rajiv Jaisinghani, Managing Director, Darsan Food Pvt Ltd. Balasubramaniam strongly feels that adoption of ISO 22000 standards in the entire supply chain will help

The core issues that employing unique techniques for cultivating rice instead of flooding the rice field can save 50 per cent water usage and improve the yield by 20-25 per cent. The huge amount of water saved could be used for other purposes. “We need a national mission, which should take up such major initiatives,” he exhorts. Besides this, farm insurance should be a reality and be easily available, which could help the farmer to recover the input costs and get a reasonable compensation in case of loss.

Rajiv Jaisinghani Managing Director, Darsan Food Pvt Ltd

The government should allot land at preferential rates to entrepreneurs with proven track record. A special consideration should be given to SME sector to ensure a widespread growth, which will help develop the industry even more rapidly and bring in fresh ideas & products.

Some of the issues that need to be addressed on a priority basis so that SMEs could emerge stronger are: R Upgradation of food processing

facilities to GMP levels R

Adequate and timely working capital & term loan availability through banks

Vocational training in food processing sector to make available manpower for SMEs

The banking sector needs to have training programmes to understand & appreciate the business dynamics of food processing industry

the SMEs emerge as a reliable source for consumers. Efficient usage of manufacturing resources like manpower, energy and water, etc, will make the sector really competitive. This measure is imperative, as the availability and costs of various products are increasing at an alarming rate. “We would be outpriced by cheaper sources soon, if we delay the implementation of such steps,” cautions Balasubramaniam. Another important step in this direction is the promulgation of The Warehousing

Modern Food Processing | February 2011

M A Tejani Managing Director, Gits Food Products Pvt Ltd.

Procedures should be simplified and routed through private agencies having expertise and the right mindset to find solutions for every problem – not vice versa. Safeguards pertaining to judicious usage of subsidy could be put in place to ensure that genuine projects are established. Development and Regulation Act, and the accompanying regulatory authority should give impetus to private investments in warehousing.

Significance of government support It has been often said that the SME sector is not able to avail of government’s help (financial assistance, term loan, etc) to the maximum extent. The reasons are many, first of all government procedures are dilatory and timeconsuming. Second, when an applicant approaches sanctioning authorities, they raise all sorts of objections that ultimately lead to denial of assistance to the applicant. “Procedures should be simplified and routed through private agencies having expertise and right attitude/ mindset to find solutions for every problem – not vice versa,” opines M A Tejani, Managing Director, Gits Food Products Pvt Ltd. The current system is so cumbersome that entrepreneurs feel dejected and leave the process midway. The help is too little and comes in too late, ie when the project has already been set up. Jaisinghani strongly feels that it is necessary to have a single window/channel at the state/local level itself where the project can be assessed and help is provided

INDUSTRY UPDATE

immediately. “Safeguards pertaining to judicious usage of subsidy could be put in place to ensure that genuine projects are established,” he asserts. In the food processing sector, almost 70 per cent of production in terms of volume and 50 per cent in terms of value are contributed by the unorganised sector. Given that the sector is highly unorganised and small-scale in nature, the risks associated with the loans provided to these enterprises tend to be high. “SMEs are generally regarded as high risk enterprises as they operate in highly uncertain & competitive environment, and tend to have more variable rates of return compared to the large companies,” points out Dr Arun Singh, Senior Economist, Dun & Bradstreet India. One of the major impediments faced by financial institutions to provide funds to the SMEs is lack of adequate information regarding their business. Informational asymmetries dampen the lenders’ or investors’ confidence, as it becomes difficult to gauge the risks associated with the projects, thereby making it difficult to price the loan. “In many instances, there is no transparency in utilisation of funds after the loan is sanctioned. This makes the portfolio of the lender risky, making them wary of lending to the SME sector,” says Dr Singh. Lack of awareness is another serious issue for which many schemes, though

Dr Arun Singh Senior Economist, Dun & Bradstreet India

SMEs are generally regarded as high risk enterprises as they operate in highly uncertain & competitive environment, and tend to have more variable rates of return compared to the large companies.

good in intention, remained highly restrictive in implementation.

Ritesh Dwivedy

Perceptible changes in SME sector

CEO, Hungry Zone

A few important changes have been observed in the recent past like technology upgradation, new entrants in micro- and small-scale industrial segments including selfhelp groups, availability of wide varieties of processed food, etc. However, most important among this is technology upgradation by different units. Reportedly, companies are investing substantial amount in expansion. “We could have a cue from the disbursements under Credit Linked Subsidy Scheme (CLSS) for technology upgradation. There has

More pro-active steps According to Bhardwaj, the government’s policies lack ‘holistic’ sense. For example, while term loan may be available, one requires substantial infusion of equity during expansion. However, there is no mechanism for raising equity for MSMEs. May be in future ‘SME Exchange’ becomes a reality for raising equity as IPO.

been a 60 per cent jump in subsidy disbursals: from Rs 63 crore in 200708 to Rs 105 crore in 2009-10,” says Bhardwaj. In most cases, technological improvements are also undertaken as legacy technologies are becoming obsolete and incompatible with mandatory quality requirements, especially in the food sector. Packaging and labelling is a case in point. Today, the SME sector is more confident in implementing technologies, which are appropriate to the business requirements. “In the food industry, around 30 per cent of the resources are spent on new technologies and technology upgradation,” says Balasubramaniam. Another important trend is, MSME

The willingness to try new options and not replicate the proven business model is the favourable change observed. The fact that customers now prefer quality over price has induced the importance in the quality of food served. segment by and large is on an expansion mode, which clearly indicates the potential it holds. The organised retail is also infusing the growth of the sector. A closer look at the entire value chain will reveal that restaurants are mushrooming in India, which will also drive the demand for processed food. According to Ritesh Dwivedy, CEO, Hungry Zone, SMEs in restaurant sector can be broadly divided into two categories. The first category comprises restaurants (like Pizzeria Romano) that intend to compete with bigger brands (like Papa John’s Pizzas) and are based on a proven business model of authentic Andhra cuisine. The second category includes standalone unique business models like LebMex, which serves a unique flavour of Lebanese and Mexican vegetarian delight. “The willingness to try new options and not replicate the proven business model is the favourable change observed. The fact that customers now prefer quality over price has induced the importance in the quality of food served,” he observed. No doubt all the changes augur well for the growth of SMEs and the segment has already witnessed few interesting developments. However, few pragmatic steps from the government will take the food SMEs to a new height.

February 2011 | Modern Food Processing

SECTOR WATCH

Prebiotics

Innovation through fibrous routes The latest application of carbohydrates as dietary fibres (prebiotics) has introduced a whole new segment in the health food industry. Though at a nascent stage, prebiotic foods are seen as a promising category, promoting numerous diverse health benefits.

Modern Food Processing | February 2011

SECTOR WATCH

Mahua Roy

prebiotic is a selectively fermented ingredient that allows specific changes, both in the composition and/or activity in the gastrointestinal microflora that confers benefits upon host well-being and health. Dr Glenn R Gibson and Dr Marcel Roberfroid put forward the definition of prebiotic foods in 1995, thus opening the doors of research towards further development of this category. “The concept of prebiotics is a fairly new development, and research is proceeding quickly. This has led to new product developments (NPDs). Today, with the realisation of the number of different foods that can be supplemented, and the associated health benefits, this segment is all set to rise,” says Dr Glenn R Gibson, Head of Food Microbial Sciences Unit, Dept of Food and Nutritional Sciences, University of Reading, UK. Health and wellness are the top priorities for the consumer of today. Preventive health is more emphasised than resorting to therapeutic means. In wake of such paradigm shifts in the outlook of the consumer, food research is increasingly being directed towards the same. Thus began the journey of prebiotics.

Dr Glenn R Gibson Head of Food Microbial Sciences Unit, Dept of Food and Nutritional Sciences, University of Reading, UK

The concept of prebiotics is a fairly new development, and research is proceeding quickly. This has led to new product developments (NPDs). Today, with the realisation of the number of different foods that can be supplemented, and the associated health benefits, this segment is all set to rise.

Enhancing the ‘gut feeling’ The prebiotic effects of fructan fibres – inulin and fructooligosaccharides (FOS) – have already been established over the last decade. A relatively new series of prebiotics such as mannan-oligosaccharides (MOS), galacto-oligosaccharides (GOS) and xylo-oligosaccharides (XOS) are extensively been studied these days. Dr Bernard Marty, Consultant, UBIC Consulting Group, explains, “The ingestion of some prebiotics like inulin, GOS or lactulose readily modify the microbial composition of the large intestine, producing short-chain fatty acids (SCFA) on fermentation. Some prebiotics may result in large shifts in the intestinal microbial composition by promoting the specific proliferation of ‘good’ bifidobacteria and lactobacilli.” Dr J S Pai, Executive Director, PFNDAI, adds, “Prebiotics are rapidly becoming popular in dairy products, health drinks, nutrition bars, breakfast cereals, beverages, bakery products, meat products, weight loss products and infant foods. However, the major area continues to be dairy products. Indian market is just taking off with some dairy products like ice cream, yogurt (curd) etc being fortified with probiotics. Prebiotics is still in its

infancy but dietary fibre is being used in many categories of food that would have somewhat similar effect.”

Expanding the market Probiotics already enjoy wide consumer awareness, but their use has so far been limited to chilled dairy and supplement products. Prebiotics, which are derived from insoluble fibres and oligosaccharides, can however be incorporated into a variety of endproducts including dairy, breads, supplements, cereals, snacks, beverages, chocolates, meat and confectionery. “Anyone who wants to succeed in such a new market must know exactly what the market needs. We systematically observe nutritional and market trends throughout the world – and actively engage in tapping new markets through innovations. Compelling nutritional evidence

Pro and prebiotics unplugged Probiotics are defined as live microbial supplements that beneficially affect the consumer by improving intestinal microbial balance. Prebiotics, on the other hand, are said to feed the good bacteria that already live in the digestive system. They comprise non-digestible carbohydrates and include oligosaccharides, such as inulin, fructo-oligosaccharides (FOS), galacto-oligosaccharides (GOS), lactulose and lafinose. There are many new prebiotic components coming into the market, including isomalto-oligosaccharides, soyabean oligosaccharides, lactosucrose and xylo-oligosaccharides. Many others, such as tagatose, pectin, dextrins and larch arabinogalactan, are currently being assessed. Prebiotics provide food for the growth of lactobacillus and bifidobacteria. These non-digestible carbohydrates occur naturally in foods such as wheat, oats, banana, asparagus, leeks, onion, garlic, chicory, and artichokes. However, they are only present in small amounts. The most common prebiotic in the diet is the fibre found in fruits and vegetables.

February 2011 | Modern Food Processing

SECTOR WATCH

Dr J S Pai Executive Director, PFNDAI

If probiotics are used without prebiotics, then the benefits of probiotics may be limited so they would act only for a short time. When you include prebiotics, this provides food for the probiotics and they would remain viable for a longer period, and thus continue to provide benefits. coupled with exceptional technological characteristics can be used to create foods, which are more nutritionally balanced,” advises Van Der Schraelen, Marketing Communication Manager, Beneo GmBH. The promotional efforts of probotic manufacturers have raised public awareness about beneficial bacteria, in general, and the positive impact of probiotic ingredients on gut health, in particular. With innovative methods of natural health and wellness being introduced, strong growth in the overall prebiotics market is expected. Manufacturers thus will be hard pressed to come up with creative and resourceful strategies. They will

be expected to invest significantly in product awareness campaigns in order to communicate the positive results of clinical trials and research journals to the end-users. The market is starting to become more complex. What began as a relatively simple message with the addition of bacteria or soluble fibre to existing products is now becoming a battleground for more complex mixes. The consumers are not only offered synbiotics, but also other health ingredients such as Omega-3 and plant sterols. While some of these health ‘packages’ are interesting, the danger is that they will simply confuse the consumer who might then turn away from the sector as a whole. Thus, the most essential part of the entire marketing communication needs to concentrate on the careful planning of the brand positioning strategy. Prebiotics are set apart with an array of multifunctional properties, thus positively expanding the scope of marketing and customer base. Other properties of certain prebiotic ingredients, in addition to their prebiotic ability, also generate further growth opportunities. For instance, the beneficial gut and cardiovascular effects of inulin is already well-established and substantiated by scientific data. Additionally, it is also known to boost mineral absorption and lower blood

Before

After 1% 1%

16%

17%

Recent prebiotic product launches around the world R EIRO Research launched EIRO PUR

Prebiotic Cleanse (a dehydrated powder to be mixed with water R

FrieslandCampina launched prebiotic ingredient – Vivinal GOS, for infant nutrition

Winn-Dixie launched active yogurt

organic

VivAgave® inulin

organic

Beneo launched new prebiotic ingredient – Orafti inulin

Nestle launched Juicy Immunity for children

Weetabix launched Oaty Bars (a prebiotic cereal bar for kids)

Bimbo Bakeries launched Oroweat Active Health prebiotic bread

launched

Juice

glucose levels. Thus, the product can benefit the sizeable elderly population, which is likely to buy these products due to increased health concerns, driven partly by the high costs of healthcare. Also, foods directed towards infants and children are also a potential highgrowth avenue for prebiotic foods. “The pre and probiotics market in India is just beginning to change. In a country, which regularly consumes curd as part of traditional diets, it is difficult to anticipate the acceptance. Prebiotics will offer an advantage to individuals who cannot consume regular food. It should blend with the traditional culinary practices and Indian food habits in order to be successfully accepted in the market,” says Dr B Sesikeran, Director, National Institute of Nutrition, Hyderabad.

9% 72%

Bifidobacteria

In perfect synchronisation

82%

Bacteroides

Fusobacteria

Clostridia Source: Beneo GmBH

Figure 1: Prebiotic properties of oligofructose and inulin

Modern Food Processing | February 2011

As Dr Pai further states, “If probiotics are used in diet without prebiotics, then the benefits of probiotics may be limited as they do not get lodged in the gastrointestinal tract, so they would act only for a short time that they reside. When you include prebiotics, this provides food for the probiotics and they would

SECTOR WATCH

Van Der Schraelen Marketing Communication Manager, Beneo GmBH

Anyone who wants to succeed in a new market must know exactly what the market needs. Compelling nutritional evidence coupled with exceptional technological characteristics can be used to create foods, which are more nutritionally balanced.

Courtesy: FrieslandCampina Domo

remain viable for a longer period, and thus continue to provide benefits.” Egged on by prebiotics’ stimulative effects on probiotics, and emerging research on the benefits conferred by a healthy gut flora, manufacturers have aimed to parlay the relationship into a whole new category of functional food: the ‘synbiotic’. There is mounting scientific evidence that the symbiotic relationship between prebiotics and probiotics significantly contribute to health. Together, they have anticarcinogenic activity, anti-microbial activity. They may lower triglyceride levels; stabilise blood glucose levels;

Dr B Sesikeran Director, National Institute of Nutrition

The pre and probiotics market in India is just beginning to change. Prebiotics will offer an advantage to individuals who cannot consume regular food. It should blend with the traditional culinary practices and Indian food habits in order to be successfully accepted in the market.

boost the immune system; help improve mineral absorption & balance; and of course, enable the gut to get rid of harmful micro-organisms and help prevent constipation & diarrhea. Making the most of this development, synbiotic foods are being launched. Noted NPDs include Florativia health drink by Biotivia Bioceuticals; Susta natural sugar alternative by NXT Nutritionals, Liveactive Chewy granola bars from Kraft, among others. Continued market development of prebiotic- and probiotic-containing foods will require solid scientific evidence and innovation to keep consumers curious and convinced. The need for clinical evidence is even greater with respect to synbiotics, an emerging category that attempts to ‘synergise’ the benefits of probiotics and prebiotics in a single food.

A healthy future When it comes to further R&D in this field, the future looks fairly optimistic. Dr Gibson opines, “Identifying mechanisms of effect, as well as the effects themselves, related to prebiotics can be a vital area of research. Future studies should involve a ‘metabonomic’ approach, where the metabolic impact of the gut microbiota can be assessed in concert with prebiotic-induced changes

in selected bacterial numbers.” He also adds, “Recent studies have highlighted the complex inter-relationship between our intestinal microflora and metabolism, and have shown that the gut microflora plays an important role not only in the way we derive energy from our diet but also in the way we store this energy. Such studies have also identified putative roles for the gut microflora in the etiology, and thus treatment, of systemic diseases like diabetes and obesity. The gut is a relatively under-explored ecosystem, and yet, affords the best opportunity for reducing the impact of food-related disease through dietary intervention strategies – mainly targeting the diverse and profuse microbiota of the colon.” The health foods market is coming back to a full circle, after the boom of artificial additives and ingredients. With the impetus now on natural ingredients, this market is poised to see growth and acceptance across a wide range of potential target audience. Pre, pro and synbiotics, although in the stage of infancy, are proving to catch the attention of consumers. And why not, in this highly unexplored segment, a new pioneering and novel product will be all up for grabs. The catch lies in product awareness. Once that is achieved, these gut-health promoting foods will be the most promising product category. So, what is your gut feeling?

February 2011 | Modern Food Processing

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GM food

A molecular miracle The widening imbalance between the population growth and food production is paving the way for genetically modified (GM) crops. With major part of the globe grappling with food safety and security related issues, GM crops will certainly play an important role in ensuring adequate supply of food in the future.

Dr Channarayappa

he world population is estimated to grow by 50 per cent over the next 50 years, and with this massive population explosion, meeting the food demands of the entire world seem a daunting task. For centuries, farmers and scientists have strived to find ways and means to improve the food crops by using traditional methods. Due to limitations in the traditional methods for further improvements, genetically modified (GM) foods are evolving. India is the worldâ&#x20AC;&#x2122;s second-largest producer of food, next to China, and has the potential of becoming the biggest hub in terms of food & agricultural products. The total food production in India is likely to double in the next ten years, and there is an opportunity for large investments in food & food processing technologies.

Economic impact of GM crops Currently, the plantations of GM crops constitute a significant proportion of the worldâ&#x20AC;&#x2122;s broadacre

Modern Food Processing | February 2011

crop output. The major benefits extended to the farmers including increased crop yield, reduced farm input costs such as those incurred on pesticides, herbicides & farm labour, and more efficient farm management are key drivers for the rapid adoption of GM crops. Globally, varieties of cotton, soyabean, maize and canola are the principal GM crops cultivated. Beyond the farm gate, crops call for storage, processing, transportation and handling. When new technologies such as GM crops are adopted and total production rises, the demand for these services also increases. The adoption of GM crops can have a number of direct and indirect impacts on inter-related upstream industries such as seed, fertiliser & pesticide industries, and downstream industries such as transport, storage, feed processing, livestock, food processing and textile industries. When a new technology enters the market, its total benefit is usually shared among the technology providers, users and consumers. As a cost reducing technology,

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GM crop adoption is likely to lead to decrease in crop prices; consequently, downstream industries and consumers will benefit enormously from lower prices arising from the technology.

Applications of GM crops The commercial introduction of crops with agronomic traits is often referred to as the first generation of GM plants. Further, development of GM crops with enhanced nutritional profiles is also underway. However, many of these second-generation GM crops enter the market for commercial applications only after careful consideration and legal approvals. The key areas of research and development in the area of GM plants are: (a) agronomic traits and pest resistance and (b) altered nutrition & composition. Given below are a few reasons why GM crops are gaining importance and are expected to become the staple food in the future. Resistance to pests and diseases: Some genetic modifications can create more pest- and disease-resistant crops. Though chemical pesticides control diseases and insect damage, these pollute the environment and also decrease the food quality. Many of these chemical contaminations can be overcome by developing resistantvarieties with the help of genetic engineering techniques. This type of modifications allows farmers to increase their crop yields, thereby producing more food and lowering costs. At the same time, it also enhances the processing quality and safety of foods. For example, scientists have genetically modified sweet corn (Bt-corn) so that it produces a poison (botulism toxin), which kills harmful insects. This means the farmer no longer needs to fight insects with the help of insecticides, and the surrounding environment is no longer exposed to large amount of harmful insecticides. Functional foods: As consumers around the world are focussing more on health & well-being, the quest is on to develop functional foods that

offer additional nutritional benefits. It is within the functional foods that one can find specific active compounds crucial to stimulating and/or inhibiting certain processes within the body. For example, a biological component known as beta-carotene works within the human body to physiologically change the free radicals. In doing so, the consumption of beta-carotene rich foods (golden rice) provides defence against cell damage, improves the appearance & shine of skin, and works to even improve common facial conditions.

Genetic modifications can elongate the shelf-life of many foods, especially fruits and vegetables. GM crops will complement the traditional foods, with added benefits of safety, preference and higher commercial potential.

for which beneficial effects have been demonstrated R Replacing of an undesirable component with a component having beneficial impact R Improving the bioavailability of food components with beneficial effects R Introducing properties that facilitate food processing

Biotechnology applications in food processing Biotechnology in the food processing sector targets the selection and improvement of micro-organisms with the objectives of improving process control, yields as well as the quality, safety & consistency of bio-processed products. Fermentation is the process of bioconversion of organic substances by micro-organisms and/or enzymes (complex proteins) of microbial, plant or animal origin. It is one of the oldest forms of food preservation, which is applied globally. Indigenous fermented foods such as bread, cheese, wine and other fermented foods contribute to about one-third of the diet worldwide.

Industrial enzymes Undoubtedly, the functional food market is one of the fastest-growing segments of the global food market. Many nutritionists believe that the commercialisation of this research has the potential to deliver returns worth tens of millions of dollars to investors and shareholders from both established food & beverage categories and the introduction of new categories of nutritional food by genetic engineering. The production of functional foods by genetic engineering happens by: R Creation of new products that offers novel properties R Removing a component causing deleterious effect to the consumer (eg an allergen protein) R Enhancing the concentration of a natural component, which induces beneficial effects R Addition of a natural substance, which is not normally present, but

The food processing industry is currently the largest user of enzymes, constituting about 40 per cent of a $ 400-million market. The role of enzymes in food processing is to control texture or appearance, enhance nutritive value, and generate desirable flavours & aromas. Future applications of biotechnology will involve engineering of enzymes that change the primary structure of an enzyme. Such changes may alter target specificity, acidic condition, or thermostability. Enzyme engineering can be used to create â&#x20AC;&#x2DC;tailor-madeâ&#x20AC;&#x2122; enzymes to function best in food processing industries. Alternatively, immobilised enzymes have been developed for the production of high fructose corn syrup, and will have broad applications in processing other foods. Immobilisation of enzymes increases their stability, allows easy separation of the product

February 2011 | Modern Food Processing

MARKET SCOPE

years and approved for cultivation of these potatoes as a renewable raw material for starch production.

Enhanced nutritional value

and facilitates its recycling. In the future, immobilised enzymes will replace batch fermentations for producing various industrial products. Immobilisation – for example, rennet, the enzyme that coagulates milk during cheese-making, or lactase, the enzyme which cleaves lactose to glucose and galactose – could speed up the development of continuous innovative processing methods in the dairy fermentation industry.

Finding new food sources through GM Cotton is known for its use in clothmaking and has been mainly grown for this purpose since time immemorial. No one even thought of it as a potential source of food. The seeds of the cotton plant are rife with a potent poison called gossypol that attacks both the heart and liver. A fifth of a cottonseed’s weight is made up of oil, and a quarter of high-quality protein. For every kilogram of fibre, each cotton plant produces 1.65 kg of seed. And the plant is grown in over 80 countries by some 20 million farmers, the majority of whom live in the poorest parts of the world. If the seeds could be made edible, it has enough protein to feed half a billion people in the world. Now, scientists have found a way to remove gossypol, and make cotton into a stunning new food source. They have used a technique called RNA interference, or RNAi, to turn off a gene called delta-cadinene synthase, which is

essential for gossypol production. In this case, the team put their system under the control of a genetic switch used only in cotton seeds, and not the rest of the plant. As a result, levels of gossypol plummeted in the plant’s seeds alone. The rest remained as strong as ever against attackers. This study is testament to both the power and the precision of modern genetic technology.

Several transgenic foods are now under development, which aim to develop properties of nutritional significance and are processor-friendly. Some examples are: R Development of rapeseed and corn with nutritionally more favourable oil composition and low erucic acid R Spinach and lettuce accumulating less nitrate R Potato richer in starch, thus absorbing less fat when fried R Cereals with increased lysine content R Transgenics not producing allergens R Rice capable of synthesising betacarotene and ferritin R Strawberry and broccoli producing higher levels of anticancer and antioxidant agents

Enhanced shelf-life Modification of food crops suitable for processing Potatoes are gaining prominence as renewable raw materials for the starch industry. The starch produced in regular potatoes, however, is not in an ideal form. It is composed of a mixture of two different kinds of starch: amylose (20 per cent) and amylopectin (80 per cent). Both these kinds of starch are useful for human nutrition. But for the processing industry, a mixture of different varieties of starch pose a problem. It must separate these using expensive processes that take a toll on the environment. This is why plant biotechnologists are working hard to develop potatoes that produce only one type of starch. Classical breeding methods have not yet been able to provide an amylose-free potato, but genetic engineering (antisensestrategy), on the other hand, offers a targeted approach to suppressing the production of amylose. Genetically modified amylopectin potatoes have been tested in field trials for several

Modern Food Processing | February 2011

Genetic modifications can elongate the shelf-life of many foods, especially fruits and vegetables. Long-lasting tomatoes were the first genetically modified food available to consumers. Because the GM tomatoes can remain fresh longer, they can be allowed to ripen in the sun before picking – resulting in a better tasting tomato. Crops that are sensitive to drought or frost could be genetically altered to survive, which would reduce the cost of certain types of food staples. In a nutshell, looking at the future food demand due to the exploding population and changing consumer preferences, GM crops will complement the traditional foods, with added benefits of safety, preference and higher commercial potential. Dr Channarayappa is the Professor and Head of Department of Biotechnology at M S Ramaiah Institute of Technology in Bengaluru. Email: crayappa@rediffmail.com

MARKET INSIGHT Funding Options

Financing agri-business

Yielding rich dividend Transforming agricultural prowess into agri-business coupled with value-addition of farm produce holds huge opportunities for a developing country like India, which has the potential to strengthen its business landscape. With easy availability of labour, amicable climatic conditions and diverse variety of crops, India has all the ingredients to emerge as the prime food processing centre of the world. And in order to make this a reality, financial institutions (FIs) will have to play the role of a catalyst.

Rakesh Rao

t is believed that a productive agriculture sector is crucial to ensure food security, social inclusiveness and keep inflation under control. To harness the true potential of the agro-based industry, there is a need to invest in modernisation, new technology, food processing to make value-added products, expand export & business, etc. However, due to the complex structure of the food industry and long gestation period, access to funds is quite a challenge. Considering this, the government decided to include food processing in the definition of ‘priority sector lending for banks’. Dr K G Karmakar, Managing Director, NABARD, says, “Inclusion of food and agro-based processing sector under priority sector lending for bank finance is a major step forward aimed at enhancing the credit flow for the sector.” Prasad Gopalan, Head – Agri-business (Asia), International Finance Corporation (IFC), adds, “For IFC, agri-business is a priority because of its contribution to food security and poverty reduction in rural areas. We combine investments

Modern Food Processing | February 2011

and advisory services to help the private sector address higher demand in an environmentallysustainable and socially-inclusive way. Our work with Jain Irrigation has demonstrated the impact of inclusive models in terms of productivity improvements, enhanced income for farmers and improved water efficiency. These are important results that align to our inclusive growth and poverty reduction agenda.” In addition, Union Budget (2006-07) announcement on the creation of a separate window in NABARD to provide refinance for loans disbursed to food processing segment especially for agro-processing infrastructure & market development and the follow-up initiatives thereafter by NABARD have resulted in increased refinance assistance for the sector. “The refinance support extended by NABARD in this respect amounts to ` 1,310 crore during 2006-10 period,” observes Dr Karmakar. Credit Linked Subsidy Schemes (CISS) of the Government of India for cold storage, rural godown and agri-market infrastructure have enabled to strengthen the post-harvest linkage & raw material base for processing units and

Funding Options MARKET INSIGHT

resulted in credit flow to the sector. Karmakar discloses, “As per estimates (March 31, 2010), the cumulative bank loan extended under CISS for cold storage, rural godown and agrimarket infrastructure have touched ` 5,422 crore.” Besides, the initiatives of Ministry of Food Processing Industries (MoFPI) during the XI Five-Year Plan period like the schemes for technology upgradation/ establishment/modernisation of food processing facilities, mega food parks, integrated cold chain development, etc have also facilitated credit flow to this sector. “The growth in ground level credit flow for agriculture and allied activities from ` 1,80,486 crore in 200506 to ` 3,66,919 crore in 2009-10 has contributed towards strengthening the raw material base for food processing,” adds Dr Karmakar.

Meeting the requirements The financial requirements of agribusiness industry vary from company to company. Gopalan says, “Generally, most financing needs fall under working capital, equity capital or long-term debt financing. Working capital is especially crucial for many agribusiness firms – given the seasonality of production, the needs to finance the crop cycle and to hold inventories. This can be addressed through various instruments including bank loans or commodity-based financing such as warehouse receipts.” In addition to these, many agricultural companies are exposed to weather and price risks. “They may require specific structured financing/risk management products to mitigate these risks, such as traditional crop insurance or weather index insurance. The development of efficient risk markets (commodity futures and options) is another important component of risk management for the sector,” opines Gopalan. According to Narendranath Mishra, Head - Agri, Microfinance & Rural Banking, Development Credit Bank Ltd (DCB), the financial requirements of

companies involved in agriculture can be divided into following categories: R Procurement: Seeds, agrochemicals, farm machinery, etc. These inputs either assist growing or harvesting R Production: Crop loan, land development, irrigation, plantation crops, etc R Processing: All post-harvest techniques such as sorting, grading, storage, packing and value-addition R Marketing: Cost of branding, promotion, sampling, sales and related expenses R Allied agriculture: Project finance for activities such as dairy, poultry, greenhouse, warehouse/godown/ farm building construction R Consultancy: Agri-clinics, agribusiness centres, etc He further adds, “Banks cater to the agri-business customers’ requirements through term loans, working capital loans, crop loans, project loans, warehouse receipt-based finance and farm equipment loans.”

Constraints faced The Indian food processing industry is highly fragmented and largely

Dr K G Karmakar Managing Director, NABARD

The high investment requirements of food processing industry coupled with factors leading to high cost of production make the investments risky and the lenders reluctant. Hence, the constraints need to be addressed first to facilitate enhanced credit flow to the sector. comprises small & medium-scale companies with limited ability to invest in developing backward & forward linkages, and lack advantages of scale. “Majority of these units are involved in primary and secondary processing. The new units involved in tertiary processing mainly produce unbranded products that occupy the lower segment of the food market and are unable to compete with branded products. Given the small scales of units, the limited volumes and higher risks associated with them

Bridging the need gap Some of the constraints faced by finance companies while offering loans to companies in food business are: R The small scale of operations due to significant fragmentation of the

industry R

Lack of sufficient assets to be used as security against the loans

Lack of experience of sponsors in food business

Limited availability of risk management products (eg, hedging arrangements to help mitigate some risks)

Lack of fundamental competitiveness of certain agri-business operations that only survive on account of subsidies or tariff protection

Following are some of the funding options for agri-business sector: R Term loans/working capital loans given by banks R Subsidies

from Government)

government

schemes

(by

NABARD,

state/Central

R Loans from microfinance institutions for small farmers R Specialised agri-private equity such as from Rabo Bank, Acumen as well as

mainstream private equity R Microfinance-focussed private equity

February 2011 | Modern Food Processing

MARKET INSIGHT Funding Options

because of their stand-alone nature, and seasonality of produces, credit availability for the sector are areas of concern. This leads to banks incurring high loan servicing costs due to limited volumes, lack of reliable information and high costs of information on demand & supply, pricing trends, raw material availability, high supervision costs, etc,” says Dr Karmakar. According to Mishra, while securing finance, agri-business companies face constraints due to absence of welldeveloped risk mitigation tools, lack of past statistical data, poor economic viability, lack of capital, general apathy/ low understanding of the business by bankers, and cyclical/unique nature of the business. Offering solution to this, Dr Karmakar says, “The high investment requirements of food processing industry coupled with factors leading to high cost of production make the investments risky and the lenders reluctant. Hence, the constraints need to be addressed first to facilitate enhanced credit flow to the sector. The banks are and will be interested to lend for projects that are perceived as bankable, economically-viable and commercially-feasible.” Gopalan offers a different perspective and says, “As in most industries, larger companies and MNCs

Prasad Gopalan Head – Agri-business (Asia), International Finance Corporation

Generally, most financing needs fall under working capital, equity capital or long-term debt financing. Working capital is especially crucial for many agri-business firms – given the seasonality of production, the needs to finance the crop cycle and to hold inventories.

in the food business have plenty of access to capital, whereas the smaller ones are stuck in a space where access to finance is limited. But this scenario is changing, as smaller companies are positioning themselves to become more substantial players in their business segments and management of second-tier companies is increasingly professionalised.”

Taking development to the next level Experts believe that microfinance can be a potential tool to promote the value chain in micro, small and medium agribusiness ventures. “There is a need for supporting small, village, micro and selfhelp group (SHG) units for agri-business activities having greater employment opportunities, especially for women during their spare time, in rural areas. In this context, the focus would be on backward and forward linkages, training facilities, skill upgradation/capacitybuilding and techniques for adoption of better & modern technology suited to local & activity-specific conditions,” says Dr Karmakar. For example, NABARD promotes SHGs and farmers’ clubs, which are involved in micro enterprises and agribusiness promotion. SHGs are also being used by some of the FMCGs for marketing their agri-business/food products in rural areas. According to Dr Karmakar, the focal issues to be addressed for agri-business promotion through micro credit are: R Lateral & vertical integration of micro enterprises at base level on satellite and mother unit model or with co-operatives/corporates to build scale of economy and branding R Primary processing & value-addition at farm gate to target niche market on one side and to channelise quality raw material/semi-processed produce to central units R Networking of micro-enterprises and providing a special promotionalcum-credit package facilitated

Modern Food Processing | February 2011

Narendranath Mishra Head - Agri, Microfinance & Rural Banking, Development Credit Bank Ltd

While securing finance, agribusiness companies face constraints due to absence of well-developed risk mitigation tools, lack of past statistical data, poor economic viability, lack of capital, general apathy/low understanding of the business by bankers, and cyclical/unique nature of the business. through the involvement of local NGOs and grass root organisations like SHGs or Joint Liability Groups (JLGs) for promoting microenterprises in agri-business sector

Catalysing growth With the government identifying food processing as a thrust area, it is extending all necessary support for the development of this sector. The initiatives for promoting the food processing sector in the country must focus on accelerating the pace of capital formation; ensuring remunerative prices for the farm produce; developing infrastructure with emphasis on transportation, marketing & post-harvest management, processing and exports. As food processing companies plan for expansion and investment, banks/FIs will have to play a supportive role to take the industry to next level. As Gopalan puts it aptly, “Financial institutions can play an important role in supporting the development of the food and agriculture sector. Food companies have significant financial needs, some of them specific such as the financing of their working capital. Governmentled initiatives that make customised financing from both domestic and international FIs, accessible to local food processing firms, can make a positive difference.”

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Private Equity MARKET INSIGHT

PE firms

Reliable partners in progress Indian agro-based companies are witnessing strong flow of private equity (PE) investments due to high growth prospects offered by the food processing sector. Greater professionalism & accountability, fairly attractive valuations and the enormous potential of the Indian market offer lucrative opportunities to these PE investors.

Rakesh Rao

ccording to an assessment by the Prime Minister’s Economic Advisory Council (PMEAC) in August 2010, the Indian economy is expected to grow to $ 1.72 trillion in 2011-12. If the GDP growth at nine per cent continues, then India is expected to become $ 2-trillion economy by 2013-14 fiscal. Experts believe that growing economy will help the food processing industry maintain its robust growth, as branded food consumption will increase with rising income levels. Hence, it is not a surprise that PE players are looking at companies in this sector to invest, thus driving the benefit from this trend. Rajesh Srivastava, Chairman & Managing Director, Rabo Equity Advisors (a subsidiary of Rabobank), says, “Like any other growing sector, agri-business also needs funding for growth. Debt is not possible beyond a point and equity is a precursor to additional debt. Since the promoters also have a limitation for bringing fresh equity themselves, the best recourse is to raise private equity.” He further adds, “Of course, each promoter has his own thought process and mindset when he considers PE. The more progressive, confident and receptive ones welcome PE as it triggers or induces positive changes, both in governance and business. The regressive and insecure promoters see the rights and strong presence of PE as intrusion into their independence. In reality, PE could be extremely helpful for agri-business companies in heralding their fast-paced, sustainable and sanitised growth.”

For mutual benefit Generally, when companies require huge funds they approach PE firms. If the PE firm obliges, certain number of agreed shares are transferred to PE’s account in exchange of cash. This cash is used by companies to increase the strength of their balance sheet, which in turn results in increase of share market price. When share market price appreciates, PE firm sells the shares back to promoters or other entity. Devendra Shah, Chairman, Parag Milk Foods Pvt Ltd, opines, “Investors are excited about the food processing sector as it offers robust growth options. On the other hand, food & beverage companies are looking for investments to fund their expansion and backward integration plans. Generally, PE fund managers invest for a period of about 3-5 years. Once valuation of the invested company increases, they get high returns.” While opportunities are many, to know the credit worthiness of the companies in food sector is often a challenge before PE investors in absence of authentic database. Srivastava opines, “The biggest problem faced by VC/PE in this sector is the lack of track record, which makes the business planning and valuations difficult. The next problem is in opening up the promoters to dilute their long-held shareholding followed by the reluctance to conform to a new set of governance standards. Yet another, and by no means small, is the unpredictability of several variables such as weather, policies and regulations.” The integration and inter-dependence of agriculture globally is adding another complex

February 2011 | Modern Food Processing

MARKET INSIGHT Private Equity

Table 1: Private equity/venture capital (PEVC) investments in agri-business Year No. of investments Amount ($ million) 13 178 2010 2009 10 90 2008 8 126 2007 10 129

the sector has attracted a host of private equity players in the last few years. According to VCCedge, a financial research platform of VCCircle, about 24 deals Source: Venture Intelligence (till September 2010) worth $ 237 million Table 2: PEVC Investments in food & beverages sector were recorded in the Year No. of Investments Amount ($ million) Indian packaged food 2010 6 55 industry since 2000. 2009 2 18 A company can use 2008 6 88 the funds from VC/PE 2007 12 173 Source: Venture Intelligence to expand infrastructure, improve distribution and dimension while making a 3-5 year launch more value-added products. forecast, since the assessment of ground Take for example, Parag Milk Foods, rules and reality in other countries is which received investment of ` 60 crore not easy for the VC/PE firms. “Typical from India Business Excellence Fund, a investors of VC/PE firms find it hard to private equity fund managed by Motilal digest the veritable large swings in the Oswal Venture Capital Advisors Pvt Ltd fortunes of the investee companies in (MOVCAPL) in 2008. While investment this sector, which are caused many-a- in the company offered MOVCAPL times by unrelated and unpredictable an opportunity to be a part of the extraneous events. For that reason, it fast growing dairy sector, Parag Milk is extremely important to have like- could utilise the amount for capacity minded, patient and resilient investors expansion. who can silently witness down-cycles, Shah elaborates, “Investment was which have historically given way to up- used to fund the expansion of our main cycles each time. We are lucky to have plant and another processing unit. such a set of investors, which is a major We have been concentrating on pillar of our success,” opines Srivastava. expanding our value-added product portfolio across India to meet the Riding the boom growing demands for dairy products. As investors see potential in agro-based Investment from funds managed by industry on the back of strong demand, Motilal Oswal Venture Capital Advisors has helped us further propel the growth of Parag Milk.”

Rajesh Srivastava Chairman & Managing Director, Rabo Equity Advisors

Like any other growing sector, agri-business also needs funding for growth. Debt is not possible beyond a point and equity is a precursor to additional debt. Since the promoters also have a limitation for bringing fresh equity themselves, the best recourse is to raise PE. If one observes closely, majority of investments in food industry have taken place in areas that are less dependent on exports and have a strong domestic market. Perhaps this explains why there has been growing interest among PE firms to invest in agro and dairy companies. One of the top deals in dairy included Carlyle Group’s $ 22-million investment in Tirumala Milk Products in June 2010 – its first in India’s agro-space. So far, Carlyle’s investments have largely been in the technology domain. According to a Carlyle spokesperson, “We invested in a broad range of sectors in India and in Asia from consumer to industrial, technology, financial institutions, healthcare, media and many others. We find consumption power of Asia, in particular the populous countries such as India and

Devendra Shah Chairman, Parag Milk Foods Pvt Ltd

Investors are excited about the food processing sector as it offers robust growth options. On the other hand, food & beverage companies are looking for investments to fund their expansion and backward integration plans.

Table 3: Top PEVC investments in agri-business in 2010 (in $ million) Company Investors Amount ($ million) Month Blackstone, Others 64 July REI Agro Karuturi Global IIML 16 August Global Green Company Rabo Equity 10 March Source: Venture Intelligence

Table 4: Top PEVC investments in food & beverages sector in 2010 Company Investors Amount ($ million) Month Verlinvest 15 November Sula Vineyards Cremica Motilal Oswal 14 September Cobra Indian Beer Brahma Management 6 February

Modern Food Processing | February 2011

Source: Venture Intelligence

Private Equity MARKET INSIGHT

China, very attractive. This has probably explained the reason for many of our investments in dairy/agro/food sectors in Asia, including Tirumala. Another criteria of our investments is the inherent strengths or potential upside of the investee companies.”

Making a difference Majority of PE/VC invest in a wide range of sectors. But in last few years, there have been few PE firms, which are exclusively focussing on agri-business. A case in point is India Agri Business Fund (IABF), sponsored by Rabobank and other investors, targeted at Indian food and agri-business companies. Srivastava explains, “Rabo Equity Advisors, a subsidiary of Rabobank, is the investment advisor for IABF, which invests in the growth and expansion of only food and agri-business companies. The spectrum of targeted companies is quite wide, from farm to the fork and includes approximately sub-sectors plus agri infrastructure. The fund itself is anchored by Rabobank and subscribed by various pedigreed institutions like IFC, FMO, DEG, CDC Group, Capvent, RWB and Rising Tide.” The fund has so far made six investments and the 7th is on the anvil, aggregating approximately $ 60 million. All these seven investments are in different sub-sectors/ focus and most of them are performing as planned, as per Srivastava. The agriculture technology space has not attracted VC in India so far. To fill this gap, the Godrej Group entered the venture capital market by backing an early stage fund, Omnivore Capital, to invest in agricultural technology start-ups and innovations. Besides investing in Indian companies, Omnivore Capital will also back firms in the US and Canada, as the company believes that investment in these developed economies can help companies bring their technologies to markets like India.

Investor as knowledge partner Although the primary responsibility of PE firm is funding, it can also play the role of an advisor for the investing company, as fund managers can share their experience in food and agri-business sector. Srivastava opines, “The best part in food and beverages (especially processed foods) is that all sectors are growing at double digits. The issue is not so much about the sector but to find the winners within each sub-sector. The typical PE typecast does not work alone here; food and agri knowledge is key and has to be conjoined with the PE knowledge and then with suitable structuring to dish out a ‘deal’.” With increasing consumption of processed foods opening up opportunities in profitable niches, PE firms will continue to invest in food companies to be a part of this growth story.

February 2011 | Modern Food Processing

INDUSTRY INSIGHTS

Organic food

The â&#x20AC;&#x2DC;naturalâ&#x20AC;&#x2122; choice for wellbeing Organic food consumption has now surfaced as a lifestyle requirement among the premium section of the Indian population. India has emerged as one of the largest potential markets for organic food globally, as these products are considered healthy & natural, with no added chemicals or preservatives. However, it is imperative to raise awareness about their benefits among both farmers and consumers to enable the segment to tap the emerging potential.

Shushmul Maheshwari

eing an agricultural economy, India had welcomed the concept of organic food long back. Organic food products are also referred to as fresh or natural food. Presently, two kinds of such products are available in the country, which are distinguished as certified and non-certified. Certified products are among the most preferred ones and signify production process assured by an authorised & recognised certifying agency. Known for concentrated business-tobusiness activity, organic food segment is now gaining popularity among some sections of the masses. However, there are many who remain unimpressed by organic food products owing to the lack of awareness and unaffordable prices. Consequently, the off-take volumes of organic food in the domestic market have remained low.

Indiaâ&#x20AC;&#x2122;s stance on organic food Considering the growth of the organic food market in India, the industry has augmented

Modern Food Processing | February 2011

25-fold during the last seven years. Currently, India ranks 33rd in terms of total land under organic cultivation and 88th in terms of the ratio of agricultural land under organic crops to the total farming area. Combined efforts of farmers, NGOs, government interventions and market forces have pushed the stupendous escalation of the industry. As 70 per cent of arable land in the country is rain-fed, with little or no use of fertilisers, India has huge potential for organic food production as well as consumption. Furthermore, increasing awareness among the people regarding a healthier lifestyle has contributed towards the growth of organic foods in the country. As an upcoming segment of retail, organic food products are slowly but steadily finding their way into the average Indian household. As far as recognition in the global market is concerned, Indian organic food sector is primarily export-oriented. In fact, organic food exports were worth $ 125 million in 2009, showing a remarkable growth of over 50 per cent against 2008. Facts reveal that India exported 135 organic

INDUSTRY INSIGHTS

products under 18 categories, with total volume of around 44,476 tonne. With respect to commodities, although India’s role in the international market in terms of food grains is limited, it is a major player in spices and condiments. Further, the major export destinations include the European Union and the US. It is important to note that India has set a target of achieving organic food export worth $ 1 billion during the next five years, with a vision to make itself the number one organic hub in the world within the next ten years. This target will require wide acceptance of Indian organic food in mature markets in the US and Europe. Despite the organic food trend witnessing a new high in the country, the production and consumption figures are way below the world average. The ignorance of Indian farmers about using chemical fertilisers & pesticides is also adding to the country’s overall organic food produce. However, this production remains unnoticed as they remain non-certified.

The production landscape In terms of production, India has emerged as an organic centre for all types of crops. Pulses, soyabean, rice, wheat, oilseeds and coarse cereals are important crops under organic management. As far as regional data on organic farming is considered, Madhya Pradesh and Maharashtra constitute the top two regions for organic farming in the country. However, product-wise, spice production is predominant in Kerala, while tea & coffee are important crops under organic management in West Bengal and Tamil Nadu. In addition, honey, the single-largest organic export commodity, is largely collected from the wild forests of Madhya Pradesh and Uttar Pradesh. Various states in the country have initiated organic farming promotion programmes. In fact, nine states, including Kerala crafted policies for the promotion of organic farming. Among these, Sikkim, Mizoram and Uttarakhand

have announced their intent to go fully organic over a period.

15% 60%

20%

Organic food: The consumers’ choice? Organic products, which until now, were mainly being exported, are now finding more consumers in the domestic market as well. Nutritional benefits of these products have ushered the organic food revolution in the country, which is currently at a nascent stage. Although health is the key reason for this growing demand, other incidental benefits such as better taste and suitable environment are also driving growth. Despite the fact that organic food items are approximately 40 per cent more expensive than conventional food, it has been noticed that there is growing awareness regarding environmentfriendly products and hazards of chemically-grown products among the higher & upper-middle class population in the country. Besides, with a growing number of retailers offering various organic products, they are now more visible, and therefore, are more likely to generate demand.

Government initiatives Despite rising consumer preferences, the government’s role in promoting organic food in India has not been substantial. Nevertheless, emphasis on organic farming needs due consideration because of its positive effects on biodiversity & effective soil management that could go a long way in mitigating and even reversing the impact of climate change. However, certain provisions for the certification of organic foods have been put forward by state governments as well as the Centre. India currently boasts of 18 accredited certification agencies, and is among the top ten countries in the world with the presence of large number of certifying agencies. The Indian Organic Logo by APEDA facilitates the national standards for organic products and organic production, which highlights the national accreditation guidelines & programmes for organic food.

Japan

Others

Source: Agricultural and Processed Food Export Development Authority

Figure 1: Region-wise exports of organic products (in %) in FY 2010 5% 15% 52%

33%

Madhya Pradesh

Maharashtra

Orissa

Others

Source: School of Agriculture (IGNOU)

Figure 2: Top states by areas under organic farming (in %) in FY 2010

Industry shortfalls & remedial measures The Indian organic food industry needs to drastically impact the consumers’ choice in the domestic as well as international markets. In this scenario, it is quintessential to increase the awareness about the benefits of organic food through the entire value chain, right from producers to end-consumers. The most important issue to be addressed is the lack of proper government support at both financial and technical level, with an unambiguous organic food policy. Various other factors that have been identified as major obstacles for the development of organic food industry are as follows: High input costs: Farmers pursuing organic farming are subjected to various cost-related hindrances. Presently, the prices of organic inputs are higher compared to industriallymanufactured chemical pesticides and fertilisers including other inputs used in the traditional farming practices. To add to their worries, in many situations, farmers witness loss in yields on removing synthetic inputs in exchange of their farming methods from traditional to organic. For the

February 2011 | Modern Food Processing

INDUSTRY INSIGHTS

initial two to three years, marginal and small farmers cannot bear the risk of low yields on converting to organic farming. Additionally, the cost of certification with periodical inspections carried out by the certifying agencies, which hold the freedom to determine the timings, type and number of such inspections, appears to be burdensome to farmers. In this backdrop, the government should introduce schemes to compensate for the costs during the gestation period of organic food production. In fact, prior to the cultivation of any organic crop, its marketability and that too at a premium over the conventional produce has to be assured. Moreover, the cumbersome certification process should be eased and must be more facilitative to the farmers. Lack of awareness: India still boasts of the conventional farming practices involving small and marginal farmers, who utilise local or ownfarm renewable resources and follow agricultural practices in an environment-friendly manner. However, these produces go unnoticed as they fail to get certification. Furthermore, Indian farmers lack the knowledge of compost-making using modern techniques and also its applications in organic farming. Therefore, imparting proper training to the farmers is mandatory to make them aware of the benefits of vermi-compost on the modern lines. Besides, improving knowledge about the availability and usefulness of supplementary nutrients to enrich the soil is vital to increase the organic food

productivity. For this, panchayat and district level supporting bodies should deal with various issues related to the cultivation of organic food. Marketing hassles: Increasing product knowledge and delivering appropriate organic products to right customers at the right place still remain a challenge as far as India is concerned. Further, the absence of a fully developed distribution and marketing network for bio-fertilisers and bio-pesticides remains a major concern as the resellers are not eager to deal in these products owing to low demand. Besides, they earn higher profit margins for pesticides and chemical fertilisers as against the contemporary bio-fertilisers and bio-pesticides. It is therefore inevitable that the concerned authorities and agencies promote advertising campaigns involving both dealers and manufacturers to encourage the organic inputs market in India. Moreover, as the certifying agencies in the country remain inadequate and the recognised green markets are non-existent, trade channels should be formed, and infrastructure facilities for verification & certification should be brought together. Lack of an appropriate agriculture policy: It has been a reality that no financial support, as being provided in advanced countries like Germany, is available in India. The state or the Union governments do not have any specific policy that addresses the problems pertaining to the marketing of organic products. Moreover, financial assistance extended to the conventional farming methods is absent when it comes to the promotion of organic farming. These are serious issues, which call for hard and consistent efforts along with a national consensus to move forward. Crafting an appropriate agricultural policy to address the complications faced is vital to promote organic agriculture on a bigger platform. An appropriate agricultural policy should deal with the following issues to drive

Modern Food Processing | February 2011

the growth of organic food industry in the country: R Promotion of organic agriculture both for export and domestic consumption R Requirements of food security for the millions of poor populace R National self-sufficiency in food production, product and input supplies

Future panorama As soon as the industrial shortfalls are met, production & consumption of organic food in India will reach new heights in the coming years. Domestic market will witness an increase in sizeable share as producers and consumers will become aware down the lane. Further, it has been found that the demand for global organic food products (beverages, meat, fruits & vegetables) are projected to witness huge growth during the next few years and will be worth around $ 50 billion by 2014. With the sizeable acreage under naturally organic/default organic cultivation, India will emerge as a major supplier of organic products in the world. In the coming years, India will be renowned for products such as, organic tea, coffee, spices as well as fresh and processed fruits & vegetables. Some of the new and upcoming potential areas based on global demand, in which, India will excel are organic milk & dairy products, meat, cotton, nutraceuticals and cosmetics, among others. Shushmul Maheshwari is the Chief Executive of RNCOS E-Services Pvt Ltd, a market research & information analysis company with global presence. He has spent more than 15 years working in the senior management teams of both, Indian and multinational companies. He has gained expertise in research & analysis field and actively participated in various national and international conferences & discussions organised by business & trade-related associations. Email: shushmul@rncos.com

FOOD SAFETY

Traceability systems

Tracking the safety in food journey Traceability systems have a broader scope and aim at documenting the history of any product along the entire manufacturing chain from primary raw materials to the final product. More so, it assumes tremendous significance in terms of food products in the event of growing incidences of food contamination and food-borne diseases. An insightâ&#x20AC;Ś

Subhash Vaidya

onsumers increasingly insist on a foolproof comprehensive food safety policy in the entire value chain â&#x20AC;&#x201C; from farm to fork. The various food-related incidents like contamination being witnessed all over the world in the recent times make it mandatory for producers, processors, retailers, handlers and logistics companies to rely on traceability systems that enable to identify the root cause of any such occurrences. These systems also help prevent food-related mishaps.

Traceability system In the entire food value chain, the production line records the complete manufacturing activity of a food product right from raw material or ingredient suppliers, through all processing steps until it reaches the consumer. A traceability system allows the food industry to promptly locate unsafe products in case of recall

Modern Food Processing | February 2011

procedure. It helps protect brand reputation by keeping precise records and facilitates companies to quickly identify and recall unsafe products, besides reducing the scope of recall, thereby reflecting a high level of concern for public health in general. The traceability system also diagnoses production-related problems and determines liability where relevant, and hence it can help to resolve areas of concern and assume responsibility for providing a safe product to customers. Moreover, such systems identify all units, batches of ingredients & products, packaging materials, etc. The common type of identification is through written records. Sometimes, machine readable labels are widely used by the industry so that the product can be automatically scanned, identified and recorded. The label should contain information on each ingredient including the date and the supplier. The data so collected should be linked in these

FOOD SAFETY

systems. Once the batch is labelled, the information recorded must provide links to the history of the product and the origin of ingredients. In a simple system, the information relates to the path of products and the origin of its ingredients followed by the food chain including manufacturers, distributors & retailers.

Types of traceability systems Traceability systems can be manual or computerised. Small food companies generally prefer manual systems as they have limited products with a short shelf-life and less demand. However, large companies with several products, huge customer base widely opt for computerised systems as it enables speedy work, reduces errors, saves paperwork and aids tracking of product movement precisely.

The process of tracing For implementation of this process, various steps are involved. At the time of sourcing raw materials, data related to ingredients or packaging materials, information pertaining to the suppliers, date of receipt, lot number of suppliers, etc is recorded. After acceptance of the raw materials as per a given companyâ&#x20AC;&#x2122;s specification and criteria, a lot number is issued. When these ingredients and packaging materials are used in production, it is essential to link them to the manufacturing process by logging or documenting information such as units used, recipe, work order number, date, time and all such relevant details. When packaging of finished products is carried out, it is vital to give a code number that will allow products to be grouped and linked to the information recorded right from the stage of receiving the raw materials. While transporting finished products to the client or customer, these have to be grouped on palates, boxes or cases, and separate identification codes need to be given. Thus, by gathering all the appropriate data at different levels and

recording them, manufacturers will be able to trace back the point of origin, if anything goes wrong.

Regulatory compliance at a global level In order to support the international agreement on food trade such as WTO requirement, various national governments are introducing regulation that primarily addresses the following issues:

Traceability systems strengthen industries and prepare them to handle future supply chain crisis. An effective traceability system lowers the risk posed by potential market threats. R Record keeping and documentation

requirement related to the food products R Labelling, including original label R Requirements related to product removal, recall and notification In order to fulfill these regulations, it is not necessary for manufacturers to adopt traceability system. However, some countries follow stringent rules and regulations. The European Union

has been the first to make it mandatory to adopt the traceability systems. In the US and Canada, it is voluntary. The demand for quality and safe products from buyers are forcing companies to implement these systems, especially if they aim at tapping export markets.

Buyersâ&#x20AC;&#x2122; requirement In spite of strict regulations by some governments, stringent traceability standards are still those imposed by buyers, ie, trading companies, wholesalers and retailers. Buyers set their requirements based on what they perceive and as demanded by the market, as well as by the law. The buyers will demand information or documentation they feel necessary to minimise risk of contamination within the food chain. In this highly competitive market, a single food safety breaching incident can ruin the brand name and even the business. Therefore, buyers in extremely competitive markets such as Japan tend to have strict regulations. Take the example of dairy industry. Cows are generally fed with grass or hay, which may come from different agricultural lands. If any problem occurs after the consumption of grass, one can trace back the origin of the grass through the stamping on the plastic stapler used to fasten the grass. This stapler contains the information about the country of origin,

February 2011 | Modern Food Processing

FOOD SAFETY

state, district, identification number of the farmer, date on which it was cut and so on & so forth. Thus, the grass can be traced back to the farmers. From here again, it is possible to check what pesticides or fertilisers were used, besides their exact quantity and proportion. This will help the dairy company to gauge the root cause in case of any problem in a particular product category or lot. There are number of examples where one can trace back the place of origin as well as time/date of harvest of fruits and vegetables sold in supermarkets with the help of labels that contain the data on the barcode.

Improving business efficiency Traceability has become a keyword in the global food industry due to increased incidences of food contamination, food poisoning and improper labelling of the origin or ingredients that have resulted into public concern on food safety. Implementing a traceability system does

not guarantee utmost food safety, but it does provide an efficient solution to resolve food safety related issues through immediate identification of problems, place, location or production stage where the error occurred in the entire food chain operation. Having reliable information about a food product within the food supply chain also means that in the event of contamination, the source of problems can be quickly identified and appropriate action can be taken. Moreover, unsafe products can be prevented from reaching the market. It is expected that the traceability systems will be adopted on a large scale worldwide in the coming years. It is advisable for the food manufacturers to follow the recommendations mentioned below: R In order to adhere to the standards in the increasingly globalising market, investment in traceability systems is essential for capturing the markets in the developed countries. Such a step

Modern Food Processing | February 2011

will also help to ensure adherence to standards set by WTO for exports R Traceability systems strengthen industries and prepare them to handle future supply chain crisis. An effective traceability system lowers the risk posed by potential market threats R These systems enable to gain the confidence not only among international buyers but also domestic consumers who are increasingly concerned about food safety R Traceability systems can improve business efficiency throughout the supply chain by recording and sharing information. This efficiency can ultimately result in increased profits. Subhash Vaidya is a Senior Consultant for food, HACCP & ISO 22000 food safety management system. He is also a Consultant for the dairy industry. Email: dairytech@rediffmail.com

TECH TRACK Robotics

Mixed-load palletising

Way to better supply chain economics The rising pressures of reducing inventory costs, optimal utilisation of floor space and handling of diverse products simultaneously have paved the path for the adoption of mixed-load palletising. Mixed-load pallets enable manufacturers to speed up time-tomarket and prevent damage to products, while cutting down on space, money & labour requirements. This is not all; the benefits trickle down the entire supply chain, thereby making it a sustainable technology to opt for. Courtesy: KUKA Robotics

ith manufacturing becoming more competitive, the best way for companies to remain viable is by identifying & embracing sustainable technologies that reduce costs and streamline the supply chain. As manufacturers change the way they produce and distribute products, mixed-load pallet building emerges as one of the most efficient technologies deployed by them. In general, mixed-load pallet building (or mixed-load palletising) brings the manufacturing and distribution environment closer to review the complete supply chain process and identify savings in labour, floor space & inventory. To comprehend this technology, one needs to understand the software advances allowing mixed-load palletising to become a cost-effective reality. Two general forms of palletising software exist: software that builds planned pallet loads and random pallet loads. The two differ in that, planned pallet load software needs to know the location or identity of the product before it reaches the palletiser, while random palletising software can build mixed loads on the fly.

Modern Food Processing | February 2011

Planned pallet load and random palletising softwares Planned software can build a traditional homogeneous pallet or a rainbow mixed-pallet load where different layers of the pallet are created out of different products. An example of rainbow pallet includes one built from varying layers of beverages: the base being cola, the next level being diet, and the third, lemon-lime. From the side, the pallet would resemble a rainbow. The benefit of a planned rainbow or homogeneous pallet is the high degree of pallet density. The disadvantage is that rainbow and homogeneous pallets do not allow for the flexibility of building custom pallets to meet specific customer orders like mixed-pallet loads do. To reap the benefits of mixed-pallet loads, random pallet building software has to be developed and evolved to a point where it is cost-effective to the company utilising it. Random or mixed-pallet building software permits robots or other flexible palletising hardware to build pallets of products on the fly as they arrive at the palletising cell. Apart from the software variations, hardware differences also exist. Planned pallets can utilise various equipment, from infeed and

Robotics TECH TRACK

sortation conveyors to conventional and/or robotic palletisers. With the variety of hardware available, planned palletising cells tend to occupy more floor space than random palletising cells and often prove less flexible than their mixed palletising counterparts. Mixed palletising cells generally consist of less equipment, but at least two components are needed – an infeed conveyor and a robotic palletiser – both of which utilise less floor space due to the hardware’s flexible layout. Strengths and weaknesses exist in both types of pallet loads. Planned or rainbow pallets will have a high pallet density, meaning they can contain more products. The tradeoff is the great deal of floor space and hardware needed. Mixed-pallet loads, on the other hand, tend to have a lower pallet density due to the diversity of products being stacked. This is offset by the ability to create build-to-order pallets. Build-to-order pallets maximise the flexibility by creating pallets of product containing only what the retailer or distributor needs. This reduces inventory costs down the supply chain.

Cutting costs By understanding the pros and cons of various palletising strategies, it becomes easier to define what works best for a particular manufacturer and his manufacturing process. To illustrate the difference between the traditional palletising method and mixed-pallet loads, here is an example from the beverage industry. In the traditional beverage model, drinks are brewed or bottled, packaged and planned – palletised in homogeneous pallets where they are subsequently sent out for distribution. The pallets then are broken down to get the product on a truck for delivery to a store. Traditionally, when the delivery truck arrives at the store, the driver has to travel from bay to bay, building mini pallets to take things inside the store. These multiple ‘touches’ of the

product add to increased labour costs and potential product damage, as well as an inefficient use of floor space to store, stage, pick & re-palletise the product. The solution to this cost drain requires the manufacturer to work closely with the distributor and, ultimately, the retailer, to build mixed pallets to order the products that the retailer needs at a specific time, date and location. When all parties involved better understand the end-users’ buying demands, they can work together to produce, distribute and ship only what is needed, thereby reducing inventory costs. By initially building mixed-pallet

Strengths and weaknesses: Planned & mixed-load pallets R Planned or rainbow pallets have

high pallet density, & can contain more products. The tradeoff is the huge amounts of floor space and hardware needed. R Mixed-pallet loads have lower

pallet density due to the diverse products being stacked. This is offset by the ability to create buildto-order pallets.

loads, all parties will be able to speed up the time of product to market, decrease product touches and reduce labour costs, while also permitting retailers to better utilise floor space.

Selecting the right strategy Of course, manufacturers need to assess if theirs is the type of operation that would profit from the mixed-load palletising model. Generally, companies producing a single or a small variety of products, or those that have limited distribution channels would not reap the benefits. However, if one produces and/or works through various distribution channels, mixed-load palletising would prove a better fit. Still, executives

might be under some misconceptions about what is involved in converting to a mixed-load palletising system, particularly regarding cost and logistics. As recently as five years ago, cost did pose a barrier. However, with palletising software becoming more standardised, widely available & implemented, it is conservatively estimated that software costs have dropped between 10 and 15 per cent during the last few years. Hardware costs associated with mixed-load palletising also have dropped due to the increasing capabilities of robotic palletisers. As the cost of mixed-load palletising software was decreasing, robotic palletisers were becoming faster and with greater ranges & payloads. Even though several examples of mixed-load palletising exist in the US, the European market makes the greatest utilisation of this technology. Due to the continent’s smaller and more diverse geographic areas, people in Europe were quick to embrace mixed-load technology to their advantage. By bringing smaller, more diverse and demand-driven pallet loads to their supply chain, they were able to reduce labour, shipping and floor-space costs. With the US manufacturing – especially food & beverage – becoming more regional as well as demand-driven, it makes sense to utilise the proven technologies and efficiencies seen across the globe. As with any technology change, skeptics do exist. However, with mixed-load palletising, it is possible for companies to move forward and enjoy the advantages of this process without all the members of their supply chain on-board with the concept. As long as the manufacturers are utilising mixedpallet loads, efficiencies & cost savings will be enjoyed and will trickle down to other partners in the supply chain. Courtesy: KUKA Robotics For details, contact on Email: info@kukarobotics.com

February 2011 | Modern Food Processing

CASE STUDY Packaging

The products are packed by a Variopac Pro PFS non-returnables packer

Efficient PET bottling

A multi-benefit approach

The PET bottles are dressed by a Contiroll wrap-around labeller

By commissioning its first PET bottling line, Nairobi Bottlers Ltd has opened several doors into the future for the company in one clean stroke. The new PET line, featuring an integrated blowmoulder/filler BLOC configuration, was supplied in its entirety by Krones.

Horst Meixner

bottle of Coca-Cola is available for less price in Kenya than anywhere else in the world; the consumers here have to pay a mere twenty Kenyan Shillings for a 300-mL bottle of the soft drink, which corresponds to twenty Eurocents. This extremely low price is the only possible way to create a sensible presence in the market. The price of a new glass bottle is almost just as high. Coca-Cola South African Bottling Company (Coca-Cola Sabco) owns a majority holding in Nairobi Bottlers Ltd (NBL), Kenya. Sabco, in turn, is an anchor bottler in the Coca-Cola system, operating 25 filling plants in twelve countries, divided into three divisions – North-East Africa (Ethiopia, Kenya, Uganda, Tanzania and Mozambique); Southern Africa (South Africa and Namibia); and Asia (Sri Lanka, Nepal, Laos, Vietnam and Cambodia).

The biggest Coca-Cola bottler in Kenya In 1995, Sabco, together with its partner Centum (ICDC), having a minority holding,

Modern Food Processing | February 2011

purchased NBL directly from The Coca-Cola (CC) Company. Back then, there were three Kenyan facilities, two of which were closed down in 2004. And 2005 saw the entire production operation being concentrated in a new building in the suburb of Embakasi. NBL is not the only Coca-Cola licensee in Kenya. There are seven other bottlers handling CC products. But NBL is the biggest company, producing about half of Coca-Cola’s entire soft drink volume in Kenya. The volume filled by NBL amounts roughly to 20 million physical cases (32 million unit cases) or 170 million litre, or to 4.25 litre per head. And NBL is largely concentrating on the region in and around Nairobi, plus the Nakuru and Machakos region, thus supplying this soft drink to around one-third of Kenya’s population. In order to tap the prospects offered by soft drinks packaged in PET, NBL, for the first time installed PET capacities in-house. This PET line provides an option for NBL to fill Coca-Cola’s international Dasani water brand at its own premises. Moreover, this Coca-Cola Anchor bottler is also tapping into new opportunities in

Packaging CASE STUDY

the market, especially those emerging in the big supermarket chains. The new PET line, which was supplied by Krones, has the capacity of 22,000 containers an hour, and went into operation in late 2008.

A classic returnables market Kenya’s soft drink market has traditionally always focussed on returnables. Even one year after the start-up of its non-returnable PET line, about 92 per cent of NBL’s production is still being filled in returnable bottles, and a mere eight per cent in nonreturnable PET. In view of the pricing, there are almost no cans in the Kenyan market, except some minimal imported quantities, and almost no nonreturnable glass bottles, either. And the Coca-Cola licensees have a unique position in the soft drink market.

Novida makes its debut in Kenya The picture is quite a different one for the other non-alcoholic beverage segments. There are more than 50 companies bottling water in Kenya: in this market Coca-Cola’s Dasani brand accounts for around 20 per cent, which makes it the market leader. Coca-Cola’s Minute Maid product range’s share in

A Contiflow mixer has been installed for beverage blending

the fruit juice market is likewise onefifth. Here, however, another brand processing the fruits of domestic farmers is significantly stronger. Moreover, this market, with its over 100 bottlers, is even more fragmented. As a world premiere among the Coca-Cola bottlers, NBL has launched a beverage called Novida, a maltbased carbonated soft drink, available in four flavours – pineapple, tropical fruits, apple and orange. Within one short year, the production output of Novida was already accounting for five per cent of NBL’s overall production volume, and for 50 per cent of Kenya’s entire (still young) malt-based drinks market. So all in all, Nairobi Bottlers Ltd is one of the leading players in Kenya’s soft drink market.

A strategic shift towards complete lines Whereas Sabco specifies both strategy and corporate policies from a central location, the country teams are relatively free in their decisions relating to investments and national market development. NBL employs more than 1,000 workers, 660 of whom work in supply chain (production). The facility operates nine lines, including one premix line, a small manual bottling unit for a lime-based mixed drink, and six returnable-glass lines, plus the new PET line. While NBL used to put together its bottling lines itself on the mix & match principle, 2007 saw a shift in strategy and a decision to give preference to complete single-sourced lines in future. And NBL premiered this strategy with a complete 36,000-bph glass line from Krones, which went into operation in 2007. The majority of the returnable glass bottles handled on this line comprise a variety of 300-mL sizes. And still, NBL has to manage more than 50 different stock-keeping units (SKUs). The decision in favour of PET was taken just one year after installing this glass line. “It has always been our firm conviction that with this new line we

Novida is a carbonated malt-based soft drink

are creating new markets for ourselves,” said Sergio Fernandes, Country Supply Chain Manager, NBL. “Although you have to pay 40 Eurocents for a 500mL Coca-Cola PET bottle, and only 28 Eurocents for the same contents in glass, PET is a popular choice. We are recording high growth for soft drinks in PET and are now for the first time able to fill Dasani water here in our premises. It is simply availability in the market that boosts demand,” he added. Previously, Dasani had to be imported from Tanzania to meet the demand, and the bottling of soft drinks in PET was handled by another CocaCola bottler in Kenya.

Blow-moulder/filler BLOC solves space problems For its new PET line, NBL opted for a blow-moulder/filler BLOC configuration, comprising a Contiform S12 and a Volumetic filler accommodated in a cleanroom. “This enabled us to solve our space problems,” explained Mwenda Ruona Kageenu, Production Manager, NBL. The PET bottles are dressed by a Contiroll wrap-around labeller and packed in a Variopac Pro PFS non-returnables packer. Palletising, too, has been automated and is handled by a pressant. A Contiflow mixer has been installed for beverage

February 2011 | Modern Food Processing

CASE STUDY Packaging

blending. Kageenu stated, “In view of space constraints, we do not keep any preforms in stock, either, but are taking just-in-time deliveries from the preform producer on a daily basis.” He further added, “It is interesting to observe how Krones is continually expanding its product portfolio; most recent example is the water treatment system. That is one option, which might at one point in the future be of interest to us as well.”

Exploiting performance reserves Originally, NBL had a slower line in mind, but purchase costs do not rise in proportion to line performance, which is why it opted for a higher output straight away. Fernandes explains, “The idea behind this was – among other things – to be able to exploit performance reserves and deliver two-litre containers to consumers in Uganda. In addition, demand always peaks in December, and that is the crucial month for us. Our Coca-Cola products have a shelflife of only six weeks, so we cannot produce for the warehouse. Moreover, there are issues related to the limits of our glass capacities, despite the new line installed in 2007, and so if

Inspection of bottles

The blow-moulder/filler BLOC, featuring a Contiform S12 and a Volumetic filler in a cleanroom

there is additional demand, we simply fill in PET.” About the experience after the installation of the PET line, he said, “What we did learn, however, was that with nine different packaging variants run on the PET line, we have almost bitten off more than we can chew. It means that there are frequent interruptions for change-overs, which does, of course, reduce the line’s output.”

Excellent local support from the Krones LCS Centre Despite NBL’s satisfaction with the complete Krones glass line, the company left no stone unturned before deciding on the investment. “We scrutinised four different vendors. And Krones was not the cheapest. What is really a big problem for us in Kenya is the continued shift in the exchange rate against the Dollar and the Euro. In the period from order placement to PET line commissioning alone, we lost twenty per cent by devaluation against the Euro,” asserted Fernandes. In the final analysis, however, the determinant factors were the good relations the company had with the Krones staff over the years and also the excellent local support from

Modern Food Processing | February 2011

the LCS Centre in Nairobi, which guaranteed an efficient partnership.

Intensive training at the Krones Academy NBL sent ten operators and maintenance staff for 30 days to the Krones Academy in Neutraubling. “That is what we did for the glass line as well, and it worked out fine,” emphasised Fernandes. He further added, “We are benefitting greatly from this. The members of staff trained in this way take possession of the line and do their best. And what is more, they were able to familiarise their colleagues from the other shifts appropriately once they were back home. During the four weeks of commissioning, we released them from other duties, enabling them to devote their entire working hours to the new machines, together with the Krones fitters.” The money channelled into the PET line has already paid off. In 2009, output rose by ten per cent over the preceding year. The co-operation with Krones has already proved its worth and is the best evidence of the right decision. Horst Meixner is the Vice President (Sales), Middle East - Africa at Krones AG, Neutraubling. Email: horst.meixner@krones.com

EVENTS CALENDAR

National International Infotech Park Vashi, Navi Mumbai 400 705 Tel: 022-2781 2093, Fax: 022-2781 2578 Email: info@indiapackagingshow.com

CHENNAI Tamil Nadu Mar 11-13, 2011 Chennai Trade Centre

India’s premier industrial trade fair on products and technologies related to Machine Tools, Hydraulics & Pneumatics, Process Machinery & Equipment, Automation & Instrumentation, Packaging & Auxiliaries, IT Products, Electrical & Electronics, Material Handling and Safety Equipment.

For details Infomedia 18 Ltd, Ruby House, 1st Floor, J K Sawant Marg, Dadar (W), Mumbai 400 028. Tel: 022 3003 4651 Fax: 022 3003 4499 Email: engexpo@infomedia18.in

Aahar 2011 An international trade fair for food processing, machinery and technology; March 10-14, 2011; at Pragati Maidan, New Delhi For details contact: India Trade Promotion Organisation (ITPO) Pragati Maidan, New Delhi 110 001 Tel: 011-2337 1725, Fax: 011-2337 8464 Email: rkmaggo@itpo-online.com

Food & Technology Expo 2011 An international exhibition focussing on food processing & packaging machines & technologies; July 29-31, 2011; at Pragati Maidan, New Delhi For details contact: Anil Rana NNS Events & Exhibitions Pvt Ltd Meri Delhi House 25/10, East Punjabi Bagh New Delhi 110 026 Mob: 098102 13597 Email: anilrana_ars@yahoo.co.in

This two-day conference and exhibition will focus on various areas of food business like retailing, design, technology & processing, logistics, etc; March 28-29, 2011; in Mumbai For details contact: Images Multimedia Pvt Ltd S-21, Okhla Phase II New Delhi 110 020 Tel: 011-4052 5000, 4050 2500 Fax: 011-4052 5001 Email: info@imagesgroup.in

India Packaging Show The event will focus on latest trends in food packaging and emerging opportunities in the fast industrialising markets of South India; July 1-4, 2011; at HITEX, Hyderabad For details contact: Print-Packaging.com Pvt Ltd

SUGARASIA 2011 An event dedicated to sugar processing, co-generation, ethanol and cane harvesting; November 21-25, 2011; in New Delhi For details contact: Nexgen Exhibitions Pvt Ltd 1201/1206 Pragati Tower 26, Rajendra Place New Delhi 110 008 Tel: 011-4008 1051/1000 Fax: 011-4008 1099 Email: sugarasia@nexgengroup.in

Agritech Asia Exhibition and conference for agricultural machinery and postharvesting technologies; September 06-08, 2011; at Bombay Exhibition Centre, Mumbai For details contact: Radeecal Communications C-9 Ground Floor, Sumel Business Park Behind New Cloth Market Outside Raipur Gate Ahmedabad 380 022 Mob: 099740 09653, Fax: 079-2215 1080 Email: charu.mathur@ciionline.org

Fi India 2011 Food Forum India 2011

FICCI Federation House, Tansen Marg New Delhi 110 001 Tel: 011-2373 8760-70 Fax: 011-3091 0411 Email: ficciexhibition@ficci.com

An event featuring new and innovative food ingredients from India and abroad; October 3-4, 2011; at Bombay Exhibition Centre, Mumbai For details contact: Bipin Sinha UBM India Pvt Ltd 611-617, Sagar Tech Plaza - A Saki Naka, Andheri-Kurla Road Andheri (East), Mumbai 400 072 Tel: 022-6612 2600 Fax: 022-6612 2626 Email: bipin.sinha@ubm.com

Exhibition for livestock and poultry industries; November 23-25, 2011; at HITEX, Hyderabad For details contact: Indian Poultry Equipment Manufacturers’ Association (IPEMA) E-36, ‘D’ Road, MIDC, Satpur Nashik 422 007 Mob: 098220 94653 Email: info@ipema.co.in

IFDE India 2011 A food & drink international exhibition; December 01-03, 2011; at Pragati Maidan, New Delhi For details contact: Tarsus Group Plc Metro Building, 1 Butterwick London, W6 8DL, The UK Tel: +44 (0) 20 8846 2700 Fax: +44 (0) 20 8846 2801 Email: info@tarsus.co.uk

VIV India 2012 International trade fair for intensive animal production and processing; February 22-24, 2012; Bangalore International Exhibition Centre (BIEC)

Annapoorna - World of Food India 2011 An international exhibition and conference for the food and beverage industry; November 16-18, 2011; at Bombay Exhibition Centre, Mumbai For details contact: Trade Fair Secretariat

Poultry India 2011

For details contact: VNU Exhibitions Europe Jaarbeursplein 6 NL- 3521 AL Utrecht The Netherlands Tel: +31 (0)30 - 295 2700 Fax: +31 (0)30 - 295 2701 Email: info@vnuexhibitions.com

February 2011 | Modern Food Processing

EVENTS CALENDAR

International Fruit Logistica 2011

China Drinktec 2011

An international trade fair for fruit and vegetable marketing; February 09-11, 2011; at Messegelände Berlin, Germany

Exhibition on beverage, brewery and wine technology; March 09-11, 2011; at China Import and Export Fair Pazhou Complex, China

For details contact: Messe Berlin GmbH Messedamm 22 14055 Berlin, Germany Tel: +49 (0)30 3038 3000 Fax: +49 (0)30 3038 2325 Email: central@messe-berlin.de

Mobac Show 2011 A specialised exhibition for the bakery and confectionery industries showcasing the latest trends in machinery, equipment, tools and raw materials; February 16-19, 2011; at Intex Osaka, Japan For details contact: JBCM No 3 Azuma-Bldg, 1 Kanda-Hirakawa-cho Chiyoda-ku, Tokyo 101-0027, Japan Tel: 03-3862-8478 Fax: 03-3862-8470 Email: mobac@jbcm.co.jp

Gulfood Exhibition A trade fair showcasing the latest developments in food & beverage, refrigeration & food service equipment, food processing machinery, bakery & confectionery products & equipment, and food packaging; February 20-23, 2011; at Dubai International Exhibition Centre, UAE For details contact: Dubai World Trade Centre PO Box 9292, Dubai, UAE Tel: +971 (4) 332 1000 Fax: +971 (4) 3312173 Email: info@dwtc.com

Foodtechmash 2011 Exhibition of equipment and technologies for food industry; February 23-25, 2011; at KievExpoPlaza Exhibition Center, Ukraine For details contact: Kyiv International Contract Fair, JSC PO Box B-13, Kyiv, 01001, Ukraine Tel: +380 (44) 461-93-40 Fax: +380 (44) 461 93-40 Email: info@kmkya.kiev.ua

For details contact: Adsale Exhibition Services Ltd 321 Java Road, North Point, Hong Kong Tel: +852 2811 8897, Fax: +852 2516 5024 Email: exhibition@adsale.com.hk

Seafood Processing America 2011 Trade show for seafood and food processing industry; March 20-22, 2011; at Boston Convention & Exhibition Center, the US For details contact: Diversified Business Communications 121 Free Street Portland, Maine 04112-7437, USA Tel: +1 (207) 842-5500 Fax: +1 (207) 842-5503 Email: shows@divexhibitions.com.au

Interfood Sweden 2011 A food industry exhibition & congress; April 14-16, 2011; at Swedish Exhibition & Congress Centre For details contact: Svenska Mässan Box 5222, 40224 Gothenburg, Sweden Tel: +46 31 708 80 00 Fax: +46 31 16 03 30 Email: info@swefair.se

Oil China 2011 An international exhibition of olive oil and edible oil; April 18-20, 2011; at Shanghai Everbright Convention & Exhibition Center, China For details contact: Beijing Regalland Convention & Exhibition Co Ltd Room No 438 Jin Ou Building Chaoyang District Beijing 100029, China Tel: +86 10-64416542 Fax: +86 10-64412631 Email: regalland@regalland.com

IBEXPO 2011 Exhibition showcasing latest from bakery, additives, ice cream, chocolate,

coffee and patisserie equipment & accessories; May 05-08, 2011; at Tüyap Fair Convention and Congress Center, Istanbul, Turkey For details contact: Hannover - Messe International Istanbul Büyükdere Caddesi C.E.M. Ýþ Merkezi No: 23 Kat: 3 Þiþli – Ýstanbul Turkey Tel: +90 (212) 334 69 48 Fax: +90 (212) 334 69 34 / 230 04 80 Email: info@hf-turkey.com

IFIA Japan 2011 Exhibition and conference for food ingredients and additives sector; May 18-20, 2011; at Tokyo International Exhibition Center, Japan For details contact: E J Krause & Associates Inc 6550 Rock Spring Drive Suite 500 Bethesda, MD 20817, The US Tel: +1 (301) 493-5500 Fax: +1 (301) 493-5705 Email: ejkinfo@ejkrause.com

PROPAK ASIA 2011 A trade show for food processing and packaging technology; June 15-18, 2011; at BITEC, Bangkok, Thailand For details contact: Bangkok Exhibition Services Ltd 62 Rama VI Soi 30 Rama VI Road, Samsennai Phiyathai, Bangkok 10400 Thailand Tel: +66 (02) 617 1475 Fax: +66 (02) 617 1406 Email: info@besmontnet.com

FI ASIA-CHINA 2011 An international food ingredients exhibition; June 21-23, 2011; at Shanghai New International Expo Centre, China For details contact: CMP Information P O Box 200, 3600 AE Maarssen The Netherlands Tel: +31 346 559444 Fax: +31 346 573811 Email: fi@cmpinformation.com

The information published in this section is as per the details furnished by the respective organiser. In any case, it does not represent the views of Modern Food Processing

Modern Food Processing | February 2011

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Engineering Expo Indore 2011

Echoing success Setting an inspirational benchmark for itself, the recently held third edition of Engineering Expo Indore surpassed its previous records. The event marked the presence of more than 270 exhibitors and generated business worth ` 65.24 crore. In the backdrop of rapid industrial growth in Madhya Pradesh (MP), the Expo played a catalytic role in providing further boost to the manufacturing fraternity in and around the region. Prasenjit Chakraborty

he business dynamics of every economy and market keeps evolving continuously as a large number of manufacturers enter the market, thereby enhancing competition and raising the standards. The intense competitive environment calls for a networking platform that not only connects the buyer and seller but also enables them to seal envious business deals. In such a scenario, a trade fair should offer all promotional benefits that a manufacturer looks for. In this direction, the third edition of Engineering Expo Indore, held from January 07-10, 2011, at Poddar Plaza, Gandhi Hall, delivered the

promised prospects. It proved to be one of the most successful shows held in Indore in recent times. Besides being extremely effective, the Expo provided participants with a cost-effective means to promote their products on a wider platform to a serious set of buyers.

Abundant opportunities Engineering Expo Indore 2011 witnessed participation from over 270 exhibitors, including some of the leading engineering companies such as Siemens, Havells, S&T Engineers, Atlas Copco (India), Guhring India, Kirloskar Oil Engines, Nilkamal, Godrej & Boyce, etc. The exhibitors used this platform to fruitfully showcase their latest product

offerings to esteemed customers and visitors present at the event. The inauguration ceremony was attended by a galaxy of industry leaders namely Ashok Jaiswal, President, Association of Industries, MP; Gautam Kothari, President, Pithampur Audhyogik Sangathan; Omprakash Gupta, President, Madhya Pradesh Electric Merchants and Contractors Association, and many other dignitaries across industries. Addressing the gathering, Jaiswal said, “With the proactive support of the State Government, MP is taking rapid strides on the industrial front. In this scenario, the exhibition provided a much-needed momentum to accelerate the growth prospects of the industries.” He further added,

The growth facilitator

ries, r of Indust a, Ministe iy rg o a xp yv E ija at the Kailash V g his visit MP, durin 74

Modern Food Processing | February 2011

One of the major highlights of this Expo included the visit of Kailash Vijayvargiya, Minister of Industries, Government of Madhya Pradesh. He took keen interest in the exhibition and visited different pavilions. Commenting on the Expo, the minister said, “Engineering Expo is an excellent platform for the industry. It has an important role in uplifting the industrial scenario of MP.” He further added, “The Expo met several requirements of new entrepreneurs by providing them a chance to interact with a plethora of new companies, and learn about different products & technologies showcased at the event. It is a good platform for facilitating growth in the manufacturing sector of MP.” The minister was accompanied by dignitaries from the government as well as several industry associations.

, *",/

Guest of honour Omprakash Gupta, President, Madhya Pradesh Electric Merchants and Contractors Association (second from left); Gautam Kothari, President, Pithampur Audhyogik Sangathan, and Ashok Jaiswal, President, Association of Industries, Madhya Pradesh lighting the traditional lamp at the inaugural function of Engineering Expo Indore

“The products displayed at the Expo will enable manufacturers to upgrade their existing technology. I hope the organisers will continue their zeal in the years to come. The Expo is beneficial to the manufacturing fraternity, visitors as well as the industrial segments of Madhya Pradesh.” Echoing similar sentiments, Kothari stated, “The exhibition is the manifestation of MP’s growth in the engineering segment. The participation of reputed brands across categories clearly narrates the success of Engineering Expo Indore. It also spells the bright future of industrial growth in the state.” He pointed out, “The technology displayed at Indore Expo will help manufacturers reduce production cost. It also acts as a platform for educating industries located in this region.” Highlighting the investment scenario in the state, Kothari informed

that Pithampur area, known as the automobile hub, has been on an expansion spree. Hence, there is a continous surge of investments being witnessed in this region. Putting things into perspective, Kothari concluded that the Engineering Expo is best placed to provide further momentum to this growth. Meanwhile, Gupta lauded the organisers for segmentation of pavilions, which helped the visitors in finding the right products in less time.

Generating crucial leads In the backdrop of the state’s rapid industrial growth, Engineering Expo emerged as an ideal platform for companies to showcase their latest products. Atanu Sengupta, Area Manager – Power Tool Division, Bosch, said, “The atmosphere here was quite professional. Irrespective of whether the exhibitors were big or small, they

professionally managed their stalls. It clearly indicates that they highly value this exhibition and consider it a serious platform for enhancing their business.” Seconding the view, Ajay Jain, Sales Engineer – Madhya Pradesh, BIPICO Industries (Tools), said, “After the Engineering Expo Indore 2010 edition, the business of our company grew by 10-15 per cent in MP.” The Expo served myriad purposes for exhibitors; some utilised this platform to launch new products, others attempted to garner new information about companies. Finolex Cables is a case in point. “Many do not know that Finolex also manufactures a complete range of switches and compact fluorescent lamps (CFLs). During the event, our major focus was on switches and CFLs, so that people are aware of these products. Engineering Expo serves as the right place for deciphering the information,” explained Gopal Halwasiya, Engineer - Sales, Finolex Cables. The participants, exhibitors and visitors alike, believed that the rapid pace of industrial growth, coupled with emerging sectors like cement and power in MP is all set to add to the grandeur and significance of Engineering Expo Indore in times to come.

Opportunities calling... With proactive support from the State Government, the industrial scenario in MP is rapidly changing. A closer look reveals that soya, chemical and food machinery segments are flourishing in western MP, while automobile and other engineering sectors are at the forefront in eastern Madhya Pradesh, especially Indore and its surrounding areas. However, there are ample growth opportunities in other sectors as well, as the state has natural wealth in the form of limestone, coal, soya, cotton, bauxite, iron ore, silica, etc. Therefore, the state has a strong industrial base in sectors like textile, cement, steel, soya processing, etc. “The State Government is attracting investments by organising summits and offering tax benefits to entrepreneurs who plan to invest in the state,” stated Ashok Jaiswal, President, Association of Industries, MP. The positivity incidentally is also indicative of the fact that in future, Engineering Expo Indore will play a greater role in boosting the industrial growth of the region.

Third editio n of Engin eering

Expo Indor e attracted 19,732 visi tors

Modern Food Processing | February 2011

, *",/

270+ exhibitors Exhibitors’ experience

The launch pad

Rahul Yadav, Assistant Manager – Sales, Rittal India

Ashish Sinha, Assistant GM, Godrej Material Handling, Godrej & Boyce Mfg Co

I was amazed by the number of visitors and enquiries received on the first day itself. Being an MNC, we generally take part in exhibitions organised in metro cities. We are participating in Engineering Expo Indore for the first time. And I must say, on a regional level, we never thought of receiving such a wonderful response. Through this exhibition, we had an opportunity to meet SME customers in and around Indore.

Indore is the commercial capital of MP, with a number of industries coming up in Pithampur, Dewas, etc. The industry is growing and this is the right platform to display our products. At the Expo, we have received quality enquiries from the visitors. We have also launched upgraded models of forklift trucks at this exhibition.

Ajay Mehta, MD, Arihant Bearing Services

We have a complete range of material handling and storage systems. We launched the steel dustbin in MP at this exhibition. This is the only exhibition in the state where one can exhibit engineering products.

Due to several constraints, small entrepreneurs cannot reach every customer. The Expo provided the perfect platform for customers to meet entrepreneurs and viceversa.

Yogesh Bagora, Assistant Manager – Sales & Marketing, Nilkamal

Rajesh Joshi, Assistant GM, Havells India Rajesh Godse, Director, Reliable Terrestrials We always believed that this exhibition is a good platform for launching new products. We have more scope when a unit expands. If rapid growth of industries is any indication, the exhibition will grow manifold from its present status. We are satisfied with the kind of arrangement and the response generated here.

Sunil Mahajan, Area Sales Manager – MP, Black & Decker India Engineering Expo is a good platform to participate. The plus point of the exhibition was the opportunity offered to meet entrepreneurs from neighbouring states, who participated in the event.

7,177

Total business leads generated

Modern Food Processing | February 2011

Engineering Expo is the best platform for reaching the target audience in Indore and surrounding areas. Recently, we have introduced (in India) geysers that are protected with earth leakage circuit breaker, which were displayed for the first time in MP through this Expo. The response was fantastic.

Sulabh Muchhal, Director, A-One Electrical Agencies This year, the response is much better than the last edition. Overwhelmed by the response we received last year, we booked the entire row in a pavilion. At the Expo, we launched HT Solutions product.

86,000 kg

Total machin ery movement at the venue

, *",/

Business of over `

65.24 crore

19,732+ Visitors

Elated first timers

Visitorsâ&#x20AC;&#x2122; views

Raj Kumar Jain, Branch Manager, Legrand (India)

Mushtak Ali, Vice President, Wire & Wire Products Association, Indore

The exhibition has proved to be beneficial for one and all present here. Most importantly, only serious participants were present, which brightened the business prospects. At our stall, we displayed three new products. We consider this as the right platform to introduce our products to the target audience.

I regularly visit exhibitions in Delhi and Mumbai, and I feel that the standard of Engineering Expo Indore is high. If the same standard is maintained, then we need not have to explore avenues outside the region to seek new types of machines.

Yogesh Mantri, Managing Director, AGECO Manoj Pugaliya, Director, Kan Power Rubber Industries The exhibition is much better than what I had expected. The enquiries are from across all industry segments, which will facilitate the growth of our business.

The exhibition was much better than what I expected. The display range was vast, which covered almost the entire gamut of the industry. This exhibition provided the latest information about new products and technology, thereby it generated huge interest from exhibitors and visitors alike.

Rajul Gandhi, Director, Seion Watertech Though I was a bit apprehensive on the first day, Engineering Expo Indore turned out to be a fantastic exhibition overall. I must say, we were at the right place to enhance our business prospects.

M B Unjhawala, Managing Director, MGMT Tools & Hardware This is the first exhibition we have participated in, since we started manufacturing six months back. I firmly believe that the automobile sector will drive the growth of the industrial scenario in MP. The exhibition will help us to penetrate the market. We displayed tool cabinets and trolleys, which are mainly used in the automobile industry.

87%rs happy Exhibito of with quality visitors

Kumar M Desai, Director, Omega Elevators I have come all the way from Ahmedabad to seek some electronic automation products and machine tools. The trade fair covered the entire range of engineering products. Regional players will benefit tremendously from this exhibition.

Manish Kumar Jain, Business Manager, Tata Steel Manufacturers, be it small-scale or large-scale, have displayed their products, thus offering a number of options to select from. We were looking for some galvanised products, which we managed to source from the Expo.

76%

Exhibito rs willin g to partic ipate in the next edition

Modern Food Processing | February 2011

REPORT

International Horti Expo 2011

Forging ‘fruit’ful ties With the modernisation of Indian food processing industry, the demand for exotic fruits has seen a rise in acceptance. In wake of this, the International Horti Expo 2011, held from January 07-09, 2011, in New Delhi, claimed to have provided a platform for forging business ties and leads.

Mahua Roy

ontributing a vital 24 per cent to the agriculture GDP, horticulture is becoming a prominent sector. It is actively driving the growth of the food processing industry in India. Post the introduction of the National Horticulture Mission (NHM) by the Ministry of Agriculture, it has become a promising sector paving way for food processing as well as modern retail. The recently held Horti Expo 2011 reportedly provided a platform to the entire horticulture and food sector, right from producers to retailers, to come together and transact business opportunities. A steady stream of over 15,000 visitors, including farmer delegations from 17 states were able to enhance their knowledge on horticultural wealth and diversity with the technology & services of over 150 companies. Apart from the states, large pavilions that attracted a number of visitors were those of APEDA and National Horticulture Board (NHB), both of which acted as information centres on various government schemes to promote floriculture and horticulture. In addition to the domestic visitors, 15 countries sent their delegations to the event.

Benefitting one and all According to the organisers, Media Today Group, the growers were able to gather information about the latest fruit varieties, growing techniques, consumer demand, input supply services and details of machinery suppliers. Since labour shortage is being increasingly felt in the agriculture sector in many

Modern Food Processing | February 2011

states, farm machinery manufacturing companies displaying their products received a number of enquiries and subsequent business leads. For the states, the Expo was a good opportunity to highlight their agricultural development programmes, especially the progress made in horticulture. S Jafar Naqvi, Expo Co ordinator, Media Today Group, said, “India has a robust gene pool, different climatic zones, availability of water & soil and large agricultural lands. Thus, it has the potential to diversify from traditional crops to horticulture and its value addition. But in the entire farm sector in India, there is a huge gap between growers and bulk buyers, which can be reduced with better infrastructure and technology. Farmers are taking risks and experimenting with diverse cash crops. Large corporate houses are taking to horticulture as a profitable business opportunity by bringing in investments and latest technologies.”

Capitalising on change The strong presence of North Eastern states was an indication of the rising popularity of growing flowers, fruits and vegetables as a profitable business in those states. Interestingly, this activity in the region has promoted women’s empowerment as well. That the demand for exotic fruits and vegetables is on the rise in the country was obvious from the exhibits in various pavilions, indicating the new trend of crop diversification among the farming community to augment income. Also, they stand testimony to the enterprising nature of farmers to capitalise on the changing demand among upper-end consumers.

TECHNOLOGY TRANSFER

Technology Offered As part of our endeavour to spread the technology culture, this section provides a means to promote and facilitate exchange of select technologies. We strive to bring together suppliers of such technologies with suitable users for negotiations and industrial collaboration.

Beverage maker An Indian firm is offering ‘threein-one’ beverage maker, which is a portable kit that allows the user to simultaneously make three functional beverages as per requirement. Using this, the consumer can set up three different types of fermentation simultaneously at one particular temperature. Areas of application Beverage industry Forms of transfer Technology licensing

Chocolate manufacturing technology An India firm provides chocolate manufacturing and snack extrusion technology with machinery. The firm supplies chocolate machines like chocolate conches, chocolate enrobers with cooling tunnel, one shot chocolate moulding machines, chocolate storage tanks, etc. The machines are manufactured using European technology. Areas of application Chocolate manufacturing Forms of transfer Consultancy, technical services and equipment supply

Food-paste moulding machine A Thailand-based firm offers a food-paste moulding machine

that produces cylindrical-shaped food paste with both ends sealed. This machine enables faster production of food-paste with consistent size and hygiene, which increase business potential in bigger markets both locally and abroad. Areas of application It is useful in food processing industries where the food products of cylindrical shape are required Forms of transfer Technology licensing

Food processing technology An Indian company provides technology for processing fruits & vegetables, biscuits, margarine, pickles, masalas, ready-to-eat foods, etc. Areas of application Aseptic processing, can processing, bottle processing, laminated pouch packing, tetra brick Forms of transfer Consultancy, turnkey

Natural extracts An Indian company provides assistance for manufacturing oleoresins / natural colour extracts using SCFE technology ensuring minimal material loss, less pollution improved yield and better quality of product. Areas of application It is useful in areas related and

making use of food colours and natural dyes Forms of transfer Consultancy, turnkey

Technology for milk, fruit and cereal-based products An Indian firm offers technology for processing milk products, fruit & vegetable products and ready-to-eat & ready-to-cook food products Areas of application Food processing industries Forms of transfer Consultancy, subcontracting, joint venture, technical services, capacity building, technology licensing, equipment supply, turnkey, others

Vacuum sealer and gas injection machine A Thailand-based company is providing technology for preserving and extending shelf life of food products. Proper packaging is critical for avoiding food spoilage. The vacuum sealing and gas injection technique prevents contaminating microbes to enter the container, thereby increasing the shelf life of the product. Areas of application Food processing industry, agro-based industry Forms of transfer Technology licensing

Share Your Technology Propositions The mission of Modern Food Processing is to spread the technology culture. We offer you an opportunity to participate in this endeavour by publishing the best technology ideas. Technology developers/sellers are invited to furnish the techno-commercial details (with environmental benefits, if any) for publication in the Technology Transfer column of Modern Food Processing. R&D organisations, technical consultancy organisations and individuals assisting small and medium enterprises may send the relevant literature, indicating the scope & services and the areas of specification. Contact: Modern Food Processing Infomedia 18 Limited, ‘A’ Wing, Ruby House, J K Sawant Marg, Dadar (W), Mumbai 400 028. Tel: 022-3024 5000, 3003 4672 z Fax: 022-3003 4499 z Email: spedit@infomedia18.in

Modern Food Processing | February 2011

TECHNOLOGY TRANSFER

Technology Requested Coconut milk beverage

Food preservation

An Indian entrepreneur is interested in acquiring the technology for producing & processing coconut milk beverage. Areas of application Food processing industry Forms of transfer Consultancy

A Thailand-based food and fruit preserved trading firm is looking for efficient technology to extend the shelf-life and preserve food and fruit. Areas of application Food processing industry, confectionary industry, pastry industry Forms of transfer Others

Corn processing An Indian company is looking for a complete proposal/project report to set up a dry milling corn processing plant in Andhra Pradesh. Targeted finished product is tinned corn, pop corn, corn flakes etc. It is also interested to import similar kind of plant & machinery to set up the same in India. Areas of application Corn processing industry Forms of transfer Others

Extruder pilot plant An Indian company is seeking the extruder pilot plant for manufacturing processed cereal-based weaning food. Areas of Application Infant food, supplementary food, weaning food Forms of transfer Others

Food processing equipment An Indian company is seeking technology and equipment for processing of fruits, vegetables and other related products. Area of application Food processing industry Forms of transfer Others

Fruit drinks-doy pack A firm from UAE is interested in acquiring the technology for manufacturing fruit juices and drinks using optimum formulation technology. The firm needs technology providers, consultants and price quotes for the project based on turnkey & know-how. Areas of applications Food processing industry Forms of transfer Others

Juice and food processing A company based in the UAE proposes to establish a food processing plant that would help process fruit juices, jam/jelly, juice concentrates & pulp. Through this plant, the company also wishes to obtain valuable by-products like cattle feed, fertiliser and raw materials for plywood. Areas of application Food processing industry Forms of transfer Others

Rice husk ash to silica precipitates An Indian company is seeking the technology to convert rice husk ash

into some useful matter like silica precipitate, as the rice husk is rich in silica content. Areas of application Agro-based mills, which burn rice husk for internal purposes Forms of transfer Others

Spice grinding and processing plant An Indian firm is seeking to set up a spice plant and requires turnkey project consultants for the same. Areas of application Food processing industry Forms of transfer Others

Virgin coconut oil production A Thai entrepreneur is interested in acquiring the technology for production of virgin coconut oil. He has an abundant supply of coconuts and plans to set up a coconut oil production line with technical cooperation from technology providers. Areas of application Food processing industry Forms of transfer Others

Xylitol technology A company based in Thailand is seeking the technology for producing gum by utilising maize-waste. Areas of application Food industry Forms of transfer Others

Information courtesy: Dr Krishnan S Raghavan, In-Charge, Technology Transfer Services Group, United Nations - Asian and Pacific Centre for Transfer of Technology (APCTT), APCTT Building , C-2, Qutab Institutional Area, New Delhi 110 016 Tel: 011 - 2696 6509, Fax: 011 - 2685 6274, Email: krishnan@apctt.org, Website: www.apctt.org For more information on technology offers and requests, please log on to www.technology4sme.net and register with your contact details. This is a free of cost platform provided by APCTT for facilitating interaction between buyers and seekers of technologies across the globe. After submitting technology offer or request to this website, you are requested to wait for at least two weeks for receiving a response from a prospective buyer / seeker through this website, before contacting APCTT for further assistance.

February 2011 | Modern Food Processing

BOOK SHELF

Starch Chemistry and Technology Editors : James BeMiller and Roy Whistler Price : ` 9,600

A comprehensive coverage of the chemistry and technology application of starch makes the third edition of this book extremely useful. It is edited by academicians of Purdue University, reckoning it as a respected compilation of information. Everything from the genetics, composition, in-depth classification, structural features, enzyme action and industrial production of various kinds of starch are explained in great detail. With starch finding growing relevance in the processed food industry, the contents of this reference book are duly updated with an entire section dedicated to the applications of starch in the food industry, with due emphasis on artificial sweeteners. This book is useful for post-graduate students and academicians in the area of food science, chemistry, biotechnology, biochemistry and other bio-sciences, as well as R&D scientists and engineers specialising in starch technology.

This book endows the reader with an all-encompassing knowledge exposure towards the irradiation of food commodities. It covers everything from the detection techniques used & their applications, legislations related to the irradiation of food and food safety. An interesting feature of this book is the inclusion of a section dealing with consumer opinion, as well, to substantiate the actual ramifications of each technology parameter. The first part of this book deals with the various legislations for food irradiation across the world. The next part mainly covers the different irradiation techniques. The third part is focussed on detection and risk assessment of irradiated food. There is an extensive coverage on the detailed applications of irradiation on the various foods items of plant and animal origin. This book offers vital information regarding meeting the government requirements as well as consumer acceptance when it comes to irradiated food. It will be a helpful tool to those pursuing and teaching courses on food science, as well as R&D and food safety scientists.

Irradiation of Food Commodities Author : Ioannis S Arvanitoyannis Price : ` 6,700

Wisdom Book Distributors, Hornby Building, 1st floor, 174, D N Road, Mumbai 400 001 Tel: 022-2207 4484/6631 8958, Telefax: 022-2203 4058, Email: thadam@vsnl.com

Modern Food Processing | February 2010

PRODUCT UPDATE

Food slicing machine

Top mounted level switch

Global Technology offers food slicing machine manufactured by Weber, Germany. It processes sausage, ham, meat and cheese. This slicing machine can be extended to form automatic processing line that includes feeding, scanning, cutting, portioning, weighing, sorting, buffering and automatic transport in packaging machine. It slices up to 2.5 tonne of sausage or cheese per hour, which is the equivalent of 8,000 slices per minute. The ‘Slicer 904 MCS’ with overlapper joins the portions cut next to each other and places them on top of each other. The portions are then fed into the packing machine on a fully automatic basis. The machine is equipped with the ‘Pac-Drives C400’ and ‘C600’ for all motion control, logic and technology functions in the slicer. Up to 17 frequency inverters, 100 digital inputs & 100 digital outputs, the check weigher and the optical weigher are networked via a CAN network over approximately 50m length. It is provided with 20 seven-digit weight displays, which indicate the package weight and are located above the packaging machine, where the machine operator can check whether to add or take off slices.

Cristal Instruments offers top mounted level switch. This facilitates any number of predetermined level controls initiating audio-visual signals with a single unit. It is designed to provide reliable operation in severe industrial applications. Capable of withstanding temperature up to 2000 C and pressure to 40 kg/ cm2, the unit is excellent for use in overhead/underground tanks, hot water service, sterilising equipment and a variety of process control fluid level applications. The unit consists of a vertical guided tube (stem) within which are located the sensor switches, magnetic float sliding over the stem according to the level in the tank, switch housing & necessary mounting connection. The switch used is reed switch hermetically sealed and encapsulated in the stem. Because the switches operate on the principle of magnetic-flux coupling with no mechanical connection, fluid contamination of switch components cannot occur.

Global Technology Mumbai - Maharashtra Tel: 022-6699 5218, Fax: 022-2822 6570 Email: info@globaltechnology.org.in

Cristal Instruments Mumbai - Maharashtra Tel: 022-2569 3893, Fax: 022-2560 3474 Email: cristal@roltanet.com

Cooker extruder

Process Instrumentation & Controls offers special tyre/rubber marking ink. This is used for identification of various types of tyres, tubes, rubber parts, etc. This tyre marking ink is extensively used in the tyre/rubber industry for code marking, consistency checking (inner) & for QC purpose. It has consistent ink viscosity for best marking quality, opaque marking ink with non-staining qualities, disposable ink-non toxic in nature, thicker inks for brighter & clear defined spots and is available in various colours & shades. The rubber marking ink has the specific bright and light colours, which are purposefully light to show up on dark rubber surfaces clearly. Colours readily available are white, yellow, pink, green, red and blue. These marking inks are UV resistant, have a free flow viscosity of 18-20 and can be customised for thinner/ thicker grade as per requirement. The company also offers diluter with ink that helps in maintaining the consistency and works as a reducer for application purpose and also give mileage to ink in the long run.

Malik Engineers offers single screw cooker extruder (gelatiniser). It can be used as a preliminary step to prepare gelatinised noodles which can then be transferred to former (cooling) extruder to produce extruded pellets. This can also be used to produce directly expanded snack food from maize, rice, wheat, tapioca flour, eg light weight, expanded cylindrical collets (corn curls). For producing extruded pellets (3G snacks), the gelatiniser can be used for cooking the food materials and cut into small lengths. The extruder is used for preparing pre-cooked soy-wheat-rice or other flours by mixing with water in required proportion before extrusion. The cooked flour usually exit from extruder as lumps which need to be dried further in suitable drier for extracting moisture to safe levels before crushing into fine powder on hammer mill/pulversiser to get precooked or pre-gelatinised material. This is provided with solid-state controls for smooth speed control of the screw rotation and has digital temperature controls & sensors for the accurate temperature control of the product.

Process Instrumentation & Controls Vadodara - Gujarat Tel: 0265-235 7228, 232 0756, Fax: 0265-235 542 Email: batchprinting@yahoo.com

Malik Engineers Thane - Maharashtra Tel: 0250-239 0839, Fax: 022-2883 0751 Email: info@malikengg.com

Tyre/rubber marking ink

February 2011 | Modern Food Processing

PRODUCT UPDATE

Food extruder Malik Engineers offers single screw cooker extruders suitable for extruding pellets from wheat, potato or corn. The line consists of a ribbon blender for dry mixing of all ingredients like wheat, starch, vitamins, salt, etc. This is available in screw sizes of 50 mm, 65 mm, 75 mm, 100 mm to give throughput rates of 25 kg, 50 kg, 80 kg, 120 kg/hour respectively. Special model with screw diameter of 160 mm provides up to 800 kg/hour output of pellet product. The twin screw version of extruder is also available, which has set of twin screws rotating inside a single barrel. The advantage is that, the screws and barrel of twin screw extruder (TSE) are made in segments (modular), unlike the single screw extruder where the construction is solid. The modular construction makes the TSE versatile because the screw geometry and process length can be easily changed as per requirements. This also gives approximately 2.5 times throughputs than that attainable from single screw extruder of equivalent size. Malik Engineers Thane - Maharashtra Tel: 0250-239 0839 Fax: 022-2883 0751 Email: info@malikengg.com

Sweet (mithai) making machine Solar Arks offers sweet (mithai) making machine. This machine is equipped with a continuously rotating vessel. A scrapper attached with a Teflon blade scrapes the bottom of the vessel, while the burners provide heat from beneath. The colour, taste and heat of the sweets can be controlled by control valves fixed in the machine. It is possible to adjust the rotation speed of the vessel, which allows the user to carry out the process as per the requirement. The product can be easily removed by tilting the vessel manually or automatically. These machines are also provided with digital temperature indicators and controllers, which could give a precise control over the product quality. This machine is used to make products such as khoa, rabadi/basundi, malai pedha/malai burfi, kaju katali/kaju roll, besan laddoo, etc. Solar Arks Kolhapur - Maharashtra Tel: 0231-2672486, Mob: 098222 06545 Email: info@solararks.com

February 2011 | Modern Food Processing

PRODUCT UPDATE

Flexible screw conveyor Noida Fabcon Machines offers flexible screw conveyor for food, pharmaceuticals, chemicals, minerals, ceramics, plastic and rubber industry. It consists of electric motor driven spiral, which rotates within a food grade sealed tube. The material moves along the spiral within the tube. The unique action of the flexible spiral conveyor eliminates the risk of the product separation. The conveyor maximum length can be up to 15 metre for material bulk density of 0.6 kg/litre and may be increased or decreased inversely with bulk density. Feed hopper is available in standard size or according to customerâ&#x20AC;&#x2122;s specification. Its main features include dust free, easy to clean, high & low level control, safe & hygienic handling, accurate metering and high transfer capacity. The different sizes of conveyor are suitable for any capacity up to 15 tonne per hour and any length from 2 to 15 metre per conveyor. Distribution of product at more than 1 outlet is also possible. The flexible nature of conveyor allows bends to be incorporated while installing the conveyor & the same can be managed through walls & roofs with minimal problem to the existing layout. Noida Fabcon Machines Pvt Ltd New Delhi Mob: 098183 77111, 098112 09769 Email: nishantb@fabcon-india.com

Pasteurising dosing system JohnsonDiversey India offers intelligent programmable dosing system called pasteurising dosing system. This system is designed to feed both the chemicals (diver guard B810 - corrosion inhibitor and diver guard B400 â&#x20AC;&#x201C; biocide gel for controlling microbes) with five tanks dosing system in the pasteurising machine. It is capable to handle toxic and highly corrosive chemicals in a safe way. This system comes with fully automated programmable system with secured inbuilt system, which allows the operator to operate using a password code. Daily dosing of the chemicals can be done at fixed intervals. It is provided with reverse chemical pumps mechanism that ensures safe handling during maintenance. This system is safe to handle due to better water flushing technique and low voltage usage. One of the features include predefined quantity for each tank. Manual priming, flushing and dosing options allow checking the system status. This system helps save water wastage by increasing the life of the water from 7 days to 21 days. JohnsonDiversey India Pvt Ltd Mumbai - Maharashtra Tel: 022-5644 4222/4267, Mob: 098205 38478 Fax: 022-5644 4223 Email: boshudhara.m@johnsondiversey.com

Modern Food Processing | February 2011

PRODUCT UPDATE

Float switch Cristal Instruments offers float switch. This can be used for initiating high/low level audio/visual signals or automatic level control of liquids in tanks. Switch actuation by micro-switch having SPDT contacts of current rating 5 A @ 240 V AC. It operates normally at 12 mm liquid level differential. Float and all wetted parts are of SS 304/316, PVC or Teflon. Designed for maximum pressure rating of 40 kg/cm2 and temperature of 300째C, the switch is suitable for mounting directly on the side of the tank. It is gland-less, and hence leak-proof. Mounting flange is SS sq flange having 83 mm PCD with 4 bolt holes of 9 mm diameter as standard. SS switch housing weather-proof is standard. Flame-proof as per IS-2148-1981 for Gr I, II A & II B gases on request. This is suitable for liquid sp. gravity from 0.7 to 1.2. Low-cost miniature types are also offered for atmospheric pressure and ambient temperature applications. Cristal Instruments Mumbai - Maharashtra Tel: 022-2569 3893, Fax: 022-2560 3474 Email: cristal@roltanet.com

Ripening chambers Blue Star offers gas emission ripening systems and ethylene generator systems. These chambers are available with necessary controls for monitoring ripening parameters. The bananas are housed in a PUF-insulated room along with refrigeration units to create and maintain desired temperature and humidity conditions for ripening. Ethylene is injected at a particular ppm level to ensure that the bananas ripen within the desired period. Bananas ripened through these systems ensure even ripening, controlled output as per the demand, uniform golden yellow colour, longer shelf-life and improved marketability of bananas. The system allows independent levels of generation in each chamber. It is provided with intelligent microprocessor controller, which ensures precise ethylene generation. The ethylene generator is portable and can be shifted from one chamber to another. Blue Star Ltd Mumbai - Maharashtra Tel: 022-6665 4000, Fax: 022-6665 4151 Email: suneel@bluestarindia.com

Modern Food Processing | February 2011

PRODUCT UPDATE

Vacuum packing machine Monarch Appliances offers vacuum packing machine for packing food products. The key advantage of this machine is that it increases the shelf-life of the products. It vacuums the product through machine. The advantage of chamber machine is that even the space surrounding the product outside the package also vacuums. Vacuum chamber machines can also be used to package products with a modified atmosphere. Very low residual oxygen figures can be obtained by first pulling a vacuum before the injection of gas. The vacuum machine is used for packing cheese, meat, fish, flower bulbs, coffee beans, pillows, PCBs, food products, khakara, roti, groundnuts, namkeen, spices, instant food, bakery products, chemicals, electric components, pharmaceutical, dairy products, dry fruits, sea foods, etc. Monarch Appliances Rajkot - Gujarat Tel: 0281-246 1826, 301 7420 Fax: 0281-301 9788 Mob: 098252 15733 , 093767 77277 Email: monarchrajkot@gmail.com

Table top coder Process Instrumentation & Controls offers table top coder. This batch coding machine is suitable for all manual & automatic coding on various packaging. This easy-to-operate coder is compact in design, which makes it easy to install, where space is limited. It operates on a microprocessor-based system and is equipped with motorised intermittent reciprocal contact coder. The coder can be used by manufacturers/packers of packaged goods to print batch no, date of manufacturing, expiry date, prices and other statutory information on various packaging, containers, labels, cartons, pouches, etc. It gives bigger printing area up to 50 mm and can easily have 4-6 lines of printing on various packed goods. Process Instrumentation & Controls Vadodara - Gujarat Tel: 0265-235 7228, 232 0756 Fax: 0265-235 5429 Email: batchprinting@yahoo.com

February 2011 | Modern Food Processing

PRODUCT UPDATE

Centrifuges United Engineering Enterprises offers full lid opening centrifuges, which conforms to GMP standards for active pharmaceutical ingredients, herbal extracts, flavours, colours, chemicals and allied process industries. These centrifuges are categorised under four-point suspension type in stainless steel construction. The entire body can be lifted & opened hydraulically. Thus the basket and drain platform are exposed, facilitating easy & quick cleaning. The body is hydraulically lowered into the closed position and clamped to the lower portion of the casing by means of quick clamps. These centrifuges are most suitable for manufacturing facilities that require frequent product change-over. These centrifuges are available in various designs depending on cake characteristics and customer requirements, viz, standard top discharge, top discharge with bag lifting arrangement, bottom discharge with/without scrapper. These are available in vapour tight construction with nitrogen blanketing for hazardous chemicals. The CIP design with built-in cleaning nozzles prevent no product cross-contamination. These centrifuges are manufactured in batch capacities ranging from 5 kg to 600 kg. United Engineering Enterprises Mumbai - Maharashtra Tel: 022-2308 3990 Email: uenggent@gmail.com

Temperature loggers Ambetronics Engineers offers temperature loggers (model EBI 10-T230) for F-value measurement. These temperature loggers determine F-value for canned goods. These are also used in monitoring of pasteurisation systems and temperature process monitoring in production. Its features include: temperature resistance up to +150째C (302째F); completely waterproof; factory calibration certificate; suitable for food products; high accuracy; programming & evaluation with PC; different models available; battery exchangeable; and data transfer in real-time through radio technology. Ambetronics Engineers Pvt Ltd Mumbai - Maharashtra Tel: 022-2837 1143, Fax: 022-2822 6570 Mob: 093242 54646 Email: ambetronics@vsnl.com

Modern Food Processing | February 2011

PRODUCT UPDATE

Panipuri making machine Jas Enterprises offers multipurpose snacks making machine. This machine is used for making farshi puri, khichiya papad, raw chapatti, raw khakhara, mathi puri, sakkarpara, chat papadi, mathri, pani puri, samosa strip, nachos, tortilla, dumpling, ravioli, pierogi, pita bread, etc. Its main features include specialised dusting device for chapatti & raw khakhara, easy to operate, reduce maintenance cost, adjustable thickness of sheet, compact design, continuous production, less power consumption, low noise, no wastage of product and no pollution hazard. Besides, it does not require skilled labour. The machine consists of sheeter of heavy-duty frame with gauging rollers driven by a motor with gearbox arrangement. The hopper is made of stainless steel with proper taper. A rotary cutter is fitted on a roller for smooth and accurate cutting as per the desired size. A provision is provided for shifting the generated scrap back to the hopper. Jas Enterprises Ahmedabad - Gujarat Tel: 079-2274 3454 Fax: 079-2274 5062 Email: info@jasenterprise.com

Semi-automatic gravity filling machine The Royal Scientific Industries offers semiautomatic gravity machine. This machine can fill both glass and PET bottles up to top lip. This is highly useful for batch production up to 8,500 bottles of 500 mL, 6000 to 7500 bottles of 1000 mL per shift. There is no requirement of power and any kind of major setting for different size and capacity of bottles. It is simple to operate and works uninterruptedly for long run. This is used to fill water, fruit juice, oil, or any free flowing liquid. The Royal Scientific Industries Chennai -Tamil Nadu Tel: 044-2225 4749 Email: royal.scientific@yahoo.com The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of

Modern Food Processing

February 2011 | Modern Food Processing

PRODUCT INDEX Sr. No.

Product

Pg No

Sr. No.

Product

Pg No

Sr. No.

Product

Pg No

Accelerated ageing test................ 55

Food slicing machine ......................... 83

Programmable terminals ...................... 5

Air cooled sealers .............................. 37

Food testing programme ..................... 6

100

Proximity sensors.................................. 5

Air cooler ............................................. 7

Forced convection unit air cooler ......... 7

101

Punching machine ............................. 55

Air purifier ......................................... 15

Form, fill and seal machine (TERRA 25) .... 27

102

PVC strip door ................................... 91

Air-conditioning equipment and

Fuels - diesel ...................................... 55

103

Rail tankers ................................... 10

compressorâ&#x20AC;&#x2122;s spare parts .................. 79

Gases ............................................. 55

104

Refrigerant pumps ............................. 10

Ammonia liquid chillers...................... 10

Gear oils ............................................ 55

105

Refrigeration ...................................... 10

Animal feed technology ..................... 13

Grain handling................................... 13

106

Refrigeration compressors .................. 79

Automatic scrubber driers .................. 45

Grinding & dispersion ........................ 13

107

RFID ..................................................... 5

Bag form, fill and seal machine

Heat resistant door....................... 91

108

Rice milling equipment ...................... 13

(SVE 2515)..................................... 27

High pressure cleaners ....................... 45

109

Rice packaging machine (TERRA 40)..... 27

Biodiesel............................................. 55

Hot air & water generator.................. 93

110

Ripening chambers............................. 90

Boilers ................................................ 93

Induction sealing ......................... 37

111

Safety door ................................... 91

Brewing ............................................. 13

Industrial control & sensing devices ..... 5

112

Safety light curtains ............................. 5

Bulk milk cooler ................................. 10

Industrial door ................................... 91

113

Screw compressor .............................. 10

Burners .............................................. 93

Industrial type unit air cooler ............... 7

114

Sealers ............................................... 37

Butterfly valve .................................... 10

In-feed moving belt ........................... 55

115

Security systems ................................. 15

Carpet cleaning machines ............ 45

Ink adhesion ...................................... 37

116

Semi-automatic gravity filling machine ... 93

Centrifuges ........................................ 92

Inspection belt ................................... 55

117

Single disc machines .......................... 45

Chocolate / cocoa machine ................ 13

Invertors/variable frequency drives........ 5

118

Slate belt ........................................... 55

Cleaning section equipment............... 13

Label adhesion ............................. 37

119

Steam boilers ..................................... 93

Coding and marking labelling machine ... COC

Level controllers ................................... 5

120

Steam engineering ............................ BIC

Colour sorting.................................... 13

Lubes (engine oils) ............................. 55

121

Surface treatment ............................. 37

Compositional & trace metal analysis . 55

Magnetic belt................................ 55

122

Sweepers ........................................... 45

Conveyor belt..................................... 55

Material identification ........................ 55

123

Sweet (mithai) making machine ......... 55

Measuring & monitoring relay for 1ph/3ph.....5

124

Switching relays ................................... 5 Table top coder ............................ 91

Cooker extruder ................................. 83

Counters & power supplies .................. 5

Metallography.................................... 55

125

Dairy machinery............................ 10

Micronizer.......................................... 55

126

Tanks & silos ...................................... 10

Doors................................................. 91

Motion controls ................................... 5

127

Temperature controllers ....................... 5

Drives...........................................19, BC

Multi fuel fired IBR steam boiler......... 93

128

Temperature loggers .......................... 92

Dust control door .............................. 91

Oil milling...................................... 13

129

Testing ............................................... 55

Ecoflux corrugated tube heat exchangers ... 9

Online B2B marketplace ...............63, 96

130

Thermal processes.............................. 13

Elevator belt....................................... 55

Packaging belt .............................. 55

131

Thermic fluid heater........................... 93

Encoders .............................................. 5

Packaging printer belt ........................ 55

132

Timers .................................................. 5

Evaporating units for cold rooms ......... 7

Panipuri making machine................... 93

133

Tin material........................................ 73

Exhibition - Engineering Expo ......31, 62

Pasta making machine ....................... 13

134

Top mounted level switch .................. 83

Exhibition - HiTech Manufacturing Show... 49

Pasteurising dosing system................. 86

135

Transmission fluids............................. 55

Extruded products.............................. 13

Peeler machine................................... 55

136

Tyre / rubber marking ink .................. 83

Factory automation........................... FIC

Petrol & fuel oils ................................ 55

137

Universal type unit air cooler......... 7

Failure analysis ................................... 55

Photo electric sensors........................... 5

138

Vacuum cleaners.....................15, 45

Filler compositional analysis ........ 55

Piston pumps ....................................... 9

139

Vacuum packing machine .................. 91

Filters ................................................... 8

Plastic modular link belt..................... 55

140

Vertical form fill and seal machine (SVI 2620)... 27

Filtration & separation solutions........... 8

Plastic pellets ..................................... 13

141

Vertical form, fill and seal machine (TW 100 NEL) ...27

Fire tube type package IBR steam boiler ... 93

Plate heat exchanger.......................... 10

142

Vertical non-IBR oil fired steam boiler... 93

Flexible screw conveyor ...................... 86

Plug valve .......................................... 10

143

Vision sensors ...................................... 5

Flexible transparent PVC strip door .... 91

Pneumatic valve ................................. 10

144

Washing elevator .......................... 55

Float switch ....................................... 90

Polymer characterisation .................... 55

145

Water purifier .................................... 15

Flour milling....................................... 13

Powder mill........................................ 55

146

Water wall membrane panel IBR steam boiler ... 93

Food conveying modular belt............. 55

Process tanks ..................................... 10

147

Wood fire four pass thermic fluid heater... 93

Food extruders ................................... 55

Programmable logic controllers ............ 5

148

Wood fire thermic fluid heater........... 93

BC - Back Cover, BIC - Back Inside Cover, FIC - Front Inside Cover, COC - Cover on Cover

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February 2011 | Modern Food Processing

ADVERTISERS’ LIST

Advertiser’s Name & Contact Details

Pg No

Balkrishna Boilers Pvt Ltd

Advertiser’s Name & Contact Details

Hi Tech Manufacturing Show

Pg No

Advertiser’s Name & Contact Details

Omtech Food Engg

T: +91-79-25894701

T: +91-09820373804

T: +91-9879670483

E: info@balkrishn.com

E: hitech@infomedia18.in

E: omtech.foodengg@gmail.com

W: www.balkrishn.com

Hindustan Tin Work Ltd

Bonfiglioli Transmissions (Pvt) Ltd

T: +91-44-24781035

T: +91-11-49998888

Pg No

Pall India Pvt Ltd

T: +91-22-67995550

E: sales@hindustantin.co.in E: vikram.mahapatra@pall.com

E: sales@bonfiglioliin.com

W: www.hindustantin.biz

W: www.bonfiglioliindia.com

W: www.pall.com

HRS Process Systems Ltd Bosch Limited

Plast World

T: +91-20-25663581/82 T: +91-832-669-2004

E: cthe@hrsasia.co.in

T: +91-9376128372

W: www.hrsasia.co.in

E: plastworld1@rediffmail.com

E: Amol.Matkar@in.bosch.com W: www.boschpackaging.com

Buhler (India) Pvt Ltd

IDMC Limited T: +91-2692-225399

T: +91-80-22890000 E: sujit.pande@buhlergroup.com

E: idmc@idmc.coop

W: www.buhlergroup.com

W: www.idmc.coop

Diversey India Pvt Ltd

India Mart Intermesh Ltd

T: +91-22-66444222

T: +1800-200-4444

W: www.diversey.com

E: pr@indiamart.com

Enercon Industries Corporations

Live Wire

E: info@enerconasiapacific.com

E: livewire18@infomedia18.in

W: www.enerconaciapacific.com

31,32,59

T: +91-09920401226

W: www.stripdoor.co.in

Sea Bird Refrigeration Pvt Ltd

T: +91-11-22155684 E: rahul.maini@amoking.com

63,96

W: www.amoking.com

Shah Brothers

T: +91-22-43560400

W: www.indiamart.com

T: +91-9600344430

Engineering Expo

E: foodkit@shahbros.com W: www.shahbros.com

Markem-Image India Private Limited COC

Shiva Analyticals (India) Limited

T: +91-120-4099500

T: +91-80-27971322

E: salesindia@markem-imaje.com

E: gupta@shivatec-india.com

W: www.markem-imaje.com

W: www.shivatec-india.com

E: engexpo@infomedia18.in W: www.engg-expo.com

Eureka Forbes Limited

FIC

T: +91-20-66470000

T: +91-80-30251500

Smart Logistics

T: +91-22-30034650

E: sales@misumi.co.in

E: fandb@eurekaforbes.com

E: prachi.mutha@infomedia18.om W: www.misumi.co.in

W: www.eurekaforbes.com

FX Multitech Pvt Ltd

Misumi India Pvt Ltd

Omron Automation Pvt Ltd

Spirax Marshall Pvt Ltd

BIC

T: +91-20-27442020

T: +91-79-27910993

T: +91-80-40726400

E: fxmultitech@gmail.com

E: srirams@ap.omron.com

E: ssarpotdar@forbesmarshall.com

W: www.fxmultitech.com

W: www.omron-ap.com

W: www.forbesmarshall.com Our consistent advertisers

Modern Food Processing | February 2011

Registration No: MH / MR / WEST / 232 / 2009-2011; RNI No: MAHENG / 2008 / 25262 WPP LICENCE No: MR / Tech / WPP â&#x20AC;&#x201C; 356 / West / 2011 Allowed To Post At Patrika Channel Sorting Office, G.P.O., Mumbai 400 001. Date of Mailing 3rd & 4th of Every Month Issue. Date Of Publication: 28th of Every Month