Modern Food Processing - May 2011 by Infomedia18

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EDITORIAL

Bridging the skill-gap

s the sunrise sector of food processing continues to clock a growth rate in double-digits year-on-year, the demand for skilled human resources is bound to surge. The challenge is to meet this need, especially of qualified food technologists, to further propel the growth of the sector. Easier said than done, food processing industry has its inherent challenges in terms of ensuring the highest order of product safety as well as their impact on the consumer health. Also, owing to the complexities of the global food supply chain, the need for highly qualified professionals is felt like never before. Some of the core competencies needed to excel in today’s food processing world include outstanding technical expertise, value-addition capabilities as per the evolving market needs, marketing skills for new product lines and consumer groups, international work ethics and global exposure, among others. In this context, it will be desirable to see more number of institutions in India imparting world-class know-how. A case in point can be recent extension of IITs and IIMs across the country. On the industry level, though there have been some initiatives to collaborate with academia and introduce customised courses as part of the curriculum to create an industry-ready workforce with the right skillsets, the efforts need to be multiplied

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on a priority basis. Hopefully, this will bridge the impending skilled human resource deficit, sooner than later. The ‘Roundtable’ presents several perspectives from the industry on this key challenge facing the industry. The meat processing segment has come a long way in the country, from a mere agricultural activity to a profitable, global business. Moreover, it has been growing at a rapid rate, given the eating-out phenomenon, with more quick service restaurant (QSR) chains opening up, and emerging consumption profile of Indians, in general. However, there are many risks. Besides bird flu and spiralling costs of feed materials, dearth of state-of-the-art technology in large-scale production, and an inadequate cold chain can potentially hinder this growth story. Turn to ‘Sector Watch’ for an insight into the latest in processed meat. Wondering how the business of baking is reinventing itself on a healthy platform with the right mix of indulgence, taste and health? Take a look at ‘Industry Update’.

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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May 2011 | Modern Food Processing

CONTENTS

LEADERS SPEAK “The last decade has seen an explosion in innovative labelling and packaging solutions” ...says Anil Sharma, Managing Director (Materials) - South Asia, Avery Dennison

ROUNDTABLE Skilled manpower shortage: A growth deterrent?

SECTOR WATCH Mechanised processing: A helping ‘hand’ for meaty growth

INDUSTRY UPDATE Indulgent foods: Baking a successful business

PRACTICAL TIPS Financial communication: Disseminating information effectively Courtesy: KPMG Audit France

TREND ANALYSIS Alcoholic beverages: On a new high! Amit Srivastava, Analyst - Consumer Markets, Datamonitor

SAFETY MANTRA

Food SMEs: Hazard control through safety compliance Rajesh Saigal, Managing Director, Intertek India

TRADE ZONE E-commerce: Differentiating products online Sandeep Deshpande, Country GM, Alibaba.com, India

REPORT Food Forum India 2011: A confluence of sustainable ideas

Cover photo courtesy: Messe Frankfurt GmbH / Petra Welzel

RE G GU ULAR SE EC C TI TIO ON NS S Editorial ...................................................... 9

National News ......................................... 12 World News............................................. 16 Tech Updates ........................................... 20 Events Calendar ....................................... 52 Product Update........................................ 58 Product Index........................................... 67 Advertisers’ List ....................................... 68

Highlights of Next Edition Sector Watch

Industry Update :

IT & Automation in Food Industry Food Packaging

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

Modern Food Processing | May 2011

Details on page no. 52

NATIONAL NEWS BRAND ACQUISITION

Marico Group sells Sweekar to Cargill India

The Marico Group has recently announced the divestment of its refined sunflower oil brand Sweekar to Cargill India Pvt Ltd. Saugata Gupta, CEO, Consumer Products Business, Marico, commented CAPACITY EXPANSION

Vadilal plans new manufacturing units With its ` 80-crore expansion-cummodernisation plans completed, Vadilal Industries Ltd, India’s second-largest ice-cream maker after Amul, is all set to increase its production capacity from the existing 2.25 lakh litre per day to 3.25 lakh litre at its two manufacturing plants in Gujarat and Uttar Pradesh. ENERGY DRINKS

Rasna brings a new energy drink to the market

Nearly 25 years after the launch of its first product, Rasna, the soft-drink concentrate maker, is set to establish itself further in the segment of health and nutrition. The conglomerate is launching Rasna Glucose-D in the market. NEW CHEESE LAUNCH

Parag Milk Foods introduces Nacho Cheese Parag Milk Foods Pvt Ltd, one of the large private dairies in India, and manufacturers of the Gowardhan and Go range of milk & milk products, recently launched Go Nacho Cheese, a special liquid cheese that, the company claims, will add zing to snacks.

that in recent years, the firm has chosen Saffola as its wellness platform vehicle in the refined edible oils and health foods space. Gupta further reiterated that during Marico’s focussed journey of sustainable profitable growth, the firm recognised that Sweekar has limited fitment in Marico’s portfolio. Gupta however added that, with its legacy of a loyal franchise spanning two decades and the consumer connect that it commands, the brand will be of

value to Cargill, which can sustain and nurture it as a leading brand. Milind Sarwate, Chief – Finance, HR & Strategy, Marico, said that over the last five years, the firm has been accomplishing its organic growth targets at a relentless pace, augmented by acquisitions. Sarwate said Marico has also looked at rationalising its brand basket in parallel, so that it continues to focus sharply on beauty and wellness.

The 80-year old company has also set up India’s fastest cone-making machine with a capacity of 18,000 cones an hour, as against 6,000 in the case of the existing machines. Since 60 per cent of sales come from cups, cones and candies, Vadilal plans to increase its share in the organised market from the current 20 per cent to 24 per cent by focussing on these, as also small-value packs that are new growth drivers. Vadilal is increasing its ad-spend

by 40 per cent, with a focus on electronic media. Currently, it has 150-plus flavours, sold in a variety of more than 250 packs and forms. The range includes cones, candies, bars, ice-lollies, small & big cups, family packs and economy packs.

Piruz Khambatta, Chairman and Managing Director, Rasna International, said “In terms of nutritional value, Rasna was one of the first companies in the beverage industry to realise that consumers do expect health benefits. Over the last 10 years, we have made a concerted effort to deliver healthy products to the market and with Glucose-D, we intend to take it forward.” Three different flavours – regular, orange and lemon – will form the portfolio of Rasna Glucose-D. In addition to these, the company has taken a lead to launch

a novel stick pack for the first time in India to make the experience convenient and hassle-free. Fortified with energy boost complex, Rasna Glucose-D has a combination of glucose and vitamins, which can energise children in a unique manner, claimed the company. Added Khambatta, “Glucose is one arena wherein customers have not got either flavour of their choice or health what they deserves. We intend to fill in this gap with the perfect blend of health & taste, and reach a stage where children themselves ask for healthy drinks.”

Rahul Akkara, VP - Marketing, Parag Milk Foods Pvt Ltd, said “We at Parag are constantly innovating and finding ways of touching our consumers’ lives with new and exciting products that keep up with evolving lifestyles. We have boosted our product offerings and are happy to offer a cheese for meeting every need. The Nacho Cheese is sure to be a family favourite and complement our existing product portfolio.”

Nacho Cheese joins the existing line of Go Cheese, which unlike most conventional snacks, are absolutely free of trans-fats, hydrogenated oils, artificial flavours, colours and preservatives.

Modern Food Processing | May 2011

NATIONAL NEWS FRUIT DRINK LAUNCH

Del Monte introduces fruit drink for all seasons

Del Monte, one of the leading processed food and beverage brands in India, announced a unique offering to add to its fruit drink portfolio. Del Monte COFFEE MACHINE

Lavazza launches new Blue Coffee Maker Lavazza, the Italian coffee company, recently launched Lavazza Blue Coffee Maker LB 1100 Series. Fresh & Honest Café Ltd, one of the leading coffee vending and retailing companies in India and part of Lavazza India, announced the launch of this new product, an ideal fit for high-end residences, conference halls, bars, cafes ASEPTIC PROCESSING

IDMC and Stork Foods enter strategic agreement

J P Gopal (right) and Patrick de Groot signing the partnership agreement

IDMC and Stork Foods and Dairy Systems B V, the Netherlands, have come together in a renewed partnership towards RECOGNITION

Godrej Nature’s Basket bags award at Food Forum India Godrej Nature’s Basket bagged the ‘Most admired food retailer of the year in the foreign foods category’ at the prestigious Coca-Cola Golden Spoon Awards – 2011, at Food Forum India held in Mumbai. The two-day annual event of Food Forum India was held with the best of retailers, suppliers, food brands and

Four Seasons Fusion is a signature fruit drink, offering a unique mixed fruit combination that has been created after extensive R&D in FieldFresh Foods’ lab and manufacturing facility in India. With this launch, Del Monte now has eight different SKUs in fruit drinks. The launch of Four Seasons Fusion is noteworthy as the flavour is not available anywhere in the world and has been specially created for the Indian market for the first time. Four Seasons

Fusion will be sold through modern trade as well as traditional retail counters across major cities in India. The drink is available in 500 ml PET bottle, which is easy to carry and ideal for out-of-home consumption as well. Four Seasons Fusion is a combination of pineapple, mango and guava fruits. These fruits are considered to be a source of health protective vitamins and minerals. It is high in fruit content and offers visual appeal with a unique and rich sunset colour.

and restaurants. The new LB1100 Series coffee machine is a delight for coffee lovers with its impressive looks yet easy to use format, claims the company. Designed by Pininfarina, an Italian design company, Lavazza aims to deliver a quality product to its consumers, with this launch. K Sivakumar, CEO, Fresh & Honest Café Ltd, said, “The new Lavazza Blue Coffee Maker LB 1100 Series makes for an ideal Italian icon at one’s home or office. These

coffee makers work on patented capsule technology that delivers an authentic espresso experience in 30 seconds. The launch of LB 1100 Series is our effort to come closer to our consumers.”

offering state-of-the-art solution for sterilisers and aseptic packaging systems. IDMC, together with Stork, will provide customised and economic aseptic processing solutions including after-sales services for the milk, juice, beverage and viscous food industries in India. “UHT processing is gaining fast acceptance as a required standard for milk and juice industries. The two companies have come together on a platform that gels well with their corporate philosophy of providing solutions, which are best in

class for operating efficiencies, reliability and overall value for money,” said J P Gopal, Managing Director, IDMC. Patrick de Groot, Director Marketing, Sales & Service, Stork, said, “The Indian dairy and juice industry is going through a rapid transition. The need for advanced food processing and packing technologies is apparent. With this alliance, we believe that we can bring complete solution that will support Indian companies to increase their profitability.”

opinion makers in the food processing industry in attendance. The yearly affair of Food Forum India, which recognises and honours the best in the Indian food retail industry, felicitated Godrej Nature’s Basket with the award for its spirit and in leading the way with robust growth in sales revenues and in-store count among the niche segment of gourmet and foreign food retailers. Speaking on the occasion, Mohit Khattar, Managing

Mohit Khattar

Director, Godrej Nature’s Basket, said, “It is a proud moment for us at Godrej Nature’s Basket. This win symbolises the perseverance of the entire Nature’s basket team.”

May 2011 | Modern Food Processing

NATIONAL NEWS FUNCTIONAL FOODS

FF&B to be held in June

The 2nd Annual FF&B India 2011 conference and exhibition, to be held from June 28-30, 2011, in Mumbai, will seek to deliver indepth insights, detailed analyses, competitive benchmarking, UPCOMING EVENT

GrainTech to boost grain processing industry The forthcoming GrainTech India 2011, will be held in Bengaluru. “Demand for technology upgradation and machinery is particularly high in the southern & western states. The exhibition aims at creating a platform for the entire grain and cereal milling industry to source the technology requirements,” said Syed M K, Coordinator, PACKAGING SOLUTIONS

Nichrome offers Spanish packaging technology

L-R: Vaibhav Modak (Executive Director, Nichrome India), Harish Joshi (MD, Nichrome India) and Joaquim Miro (CEO, TOTPACK Spain)

Nichrome India Ltd, the pioneer of VFFS machines in India, is all set to cater to FOOD SAFETY

3M launches innovative plates to test bottled water 3M, one of the leading names in global food safety products, recently launched its ISO 9001 certified, 3M Petrifilm Aqua Plates for testing water in food & beverage processing plants and beverage manufacturers that package drinking water, in India. The new solution is a perfect fit for water and beverage

and high-powered networking opportunities to help the delegates gain clarification on the evolving domestic & international regulatory framework governing food safety, health claims & nutritional labelling. In addition, the event will offer insights on the latest R&D techniques to optimise the use of high value ingredients such as Omega 3 and 6, DHA, fibres, pre and probiotics; identify new product development opportunities for the diabetic,

cardiovascular, cognitive health, female & children’s markets; and the potential of the latest ingredients for product innovation strategy. The programme includes a twoday conference and one-day seminar. Speakers presenting at FF&B India 2011 include dignitaries from FDA Maharashtra, FSSAI, Hindustan Unilever Research Centre, NIN, DFRL, Nestlé Nutrition, Britannia, NDRI, Abbott Nutrition, Kyowa Hakko Bio, and Mintel.

Food Processing & Packaging Machinery Association, India (FPPMA). The government initiatives to augment grain storage capacity in the country assumes greater significance in the context of increasing demand for milling technologies, expansion of food processing units, and launching of many value-added products like pasta, noodles, bakery products, etc. Domestic millers and food processors are looking for new technologies

from European nations and South-East Asia. “While major equipment suppliers have already opened their production and service centres in India, more companies are looking for partners or marketing associates to open shop in the country,” he said.

the requirements of packaging industry by offering special machinery that could extend re-closability and pourability for packaged products. The machinery typically known as Horizontal Form Fill Seal (HFFS) Machines is highly automated and offers a variety of pouch formats like stand up pack, zipper pack, spout pack. Nichrome India has ventured into a technical collaboration with TOTPACK from Spain. In this regard, the company will use the most advanced Spanish technology to manufacture and sell this

machinery domestically & internationally at an Indian price. Under this technology licensing arrangement, TOTPACK will support Nichrome with its experience and specialty of HFFS technology transfer and upgradation. The machines will be manufactured in simplex and duplex constructions for products like juice concentrates, soup mixes, dry fruits, liquid chemicals & gels. With this technology, the company will be able to offer machines for doypack style stand-up pouches with spout, zipper and straw attachments.

industries in India that continue to face rigorous regulations to ensure food safety. Currently, the F&B processing industry in India prepares its own agars or purchases premade agar dishes or disposable filter funnels. Bringing modern convenience, 3M’s sample ready plates replace conventional agar petridishes by offering a reliable, simple way to assess product safety. The 3M Petrifilm Aqua Plates also reduce storage

space, incubation/refrigeration space and unnecessary waste. These plates have a shelf-life of 18 months. They contain a water soluble gelling agent, nutrients and indicators, needed to test the four most common contaminants that threaten a company’s beverage product.

Modern Food Processing | May 2011

WORLD NEWS INSPECTION SYSTEMS

Mettler-Toledo acquires Eagle brand

The Switzerland-based Mettler-Toledo has acquired the Smiths Detection Product Inspection Division and will adopt the well-known Eagle brand of food X-ray PARTNERSHIP

Alokozay to be PepsiCo’s exclusive bottling partner for Afghanistan PepsiCo, one of the world’s largest food and beverage companies, signed an Exclusive Bottling Appointment (EBA) with the Alokozay Group of Companies to manufacture and distribute a broad range of PepsiCo beverages in Afghanistan. The plant RETAIL STUDY

Survey indicates hypermarkets under pressure

The reign of hypermarkets is under threat from a variety of sources and HEALTH INGREDIENTS

Danisco’s new probiotic solutions targeted at children and adults Operating at the forefront of the probiotic revolution, Danisco brings digestive and immune health benefits to the whole family with HOWARU® Balance, a new series of probiotic supplements that target the needs of all generations.

inspection systems. Well-known for its expert inspection products since 1998, the Eagle business will continue to operate as a separate entity using existing sales and service channels. Eagle will now be a part of Mettler-Toledo’s Product Inspection Division, which is focussed on helping food manufacturers meet their inspection requirements. With this acquisition, Mettler-Toledo is increasing its commitment to the food X-ray business, which will drive additional

strategic investments in technology and application development. “This acquisition is a positive step forward for our global customers and our experienced team as we can bolster customer service while expanding our field support, application capability and market coverage. Now part of MettlerToledo, Eagle will be even more effective at helping manufacturers enhance quality, safety and productivity on their lines,” said Terry Woolford, GM, Eagle.

will be set up in Kabul with an initial investment of $ 60 million. It is expected that the new plant will come into operation in March 2012. The Alokozay Group, a consumer goods distribution and marketing company headquartered in Dubai, already has a strong presence in Afghanistan in the FMCG category. As part of the EBA, the plant will not only manufacture and distribute PepsiCo

brands such as Pepsi Cola, Diet Pepsi, 7-UP, Mirinda and Mountain Dew, but will also enter the significant categories of energy drinks and bottled water by introducing PepsiCo brands such as Sting and Aquafina.

retailers urgently need to adapt and innovate to protect margins, finds Verdict’s global arm Datamonitor Retail. A new report by the independent retail analyst has revealed that although the hypermarket format quickly grew to dominate grocery retailing, emerging consumer trends along with stricter legislation on hypermarket expansion and heightened competition are prompting hypermarket retailers to rethink their operations. Natalia Grabov, Analyst, Datamonitor Retail, said, “One of the reasons for the

popularity of hypermarkets in the past has been the ability to offer almost everything under one roof at competitive prices. Consumers’ search for value during the recession has resulted in discounters gaining a high level of loyalty, particularly in the markets most affected by the downturn. For example in the US, Walmart’s Sam’s Club has outperformed Walmart itself in terms of comparable store sales. However, online retailers pose one of the biggest threats in the long term, as they are able to undercut hypermarket store prices.”

Each of the supplements in the series contains targeted combinations of two highly documented probiotic strains, accommodating the differing intestinal microflora of children and adults. L. acidophilus NCFM and B. lactis HN019 have been shown to positively modulate gut microflora, resulting in enhanced levels of beneficial bacteria. HOWARU® Balance combines the

health-enhancing attributes of both strains to promote digestive and immune health in adults. It reinforces the microflora of toddlers to teenagers, whose immune systems are more often exposed to germs and pathogens.

Modern Food Processing | May 2011

WORLD NEWS INVESTMENT

Nestle to invest in Chinese manufacturing firm

Nestle is planning to buy a 60 per cent share in China’s Yinlu Foods Group for an undisclosed sum, in a move that will help household brand Yinlu gain more traction in the Central and Western EXHIBITION

Anuga 2011 geared up to scale new heights All the indications are pointing towards success of Anuga, which will take place from October 08-12, 2011, in Cologne. The halls are almost booked – six months before the event opens. This year, Anuga’s partner country is Italy. The continually growing food service and catering market is being STRATEGIC DECISION

Dean Foods to sell Wisconsin dairy

Dean Foods is reportedly looking for a buyer for the Wisconsin dairy, which it had put up for sale last month as part of a settlement it made with the US Department of Justice. The Justice Department had filed an antitrust AWARD

Tate & Lyle’s Quince apple Enrich™ drink receives award Tate & Lyle’s Quince apple Enrich™ drink, developed for the European market, has won the 2011 Beverage Innovation Functional Drinks Award for best new functional ingredient concept. With Quince apple Enrich™, Tate & Lyle has created a drink that

regions of the country. Nestle has been present in China for more than 20 years and has 23 factories & two R&D centres there. In 2010, Nestle achieved sales of around CHF 2.8 billion in the greater China region. Paul Bulcke, CEO, Nestle, said that the investment would unite Yinlu’s entrepreneurship, product expertise and consumer understanding with its own innovation & R&D capabilities. Chen Quingyuan, Chairman, Yinlu,

said, “Together, we will continue to develop our brand and manufacturing capabilities, in particular in the Central and Western parts of China.” It is foreseen that Chen Quingyuan will stay on to lead the company once the deal is complete. Nestle and Yinlu already have history of working together, as Yinlu co-manufactures Nescafe in China. The latter is also known for its own peanut milk and rice porridge products.

much more strongly emphasised within Anuga through the new trade show – Anuga FoodService, a concept that is generating a positive response among exhibitors and partner associations alike. The new layout of the trade show Anuga Chilled & Fresh Food is also popular with the suppliers. “Anuga is once again demonstrating that it is changing with the market, and is thus fully exploiting its great innovation

potential for the benefit of the exhibitors and visitors. We are looking forward to the coming fair with lots of optimism,“ said Peter Grothues, Vice President, Food, Technology & Environment, Koelnmesse.

lawsuit against Dean objecting to the purchase of two plants from Foremost Farms – both in the state of Wisconsin. These were acquired by Dean when it bought the consumer products division of Foremost Farms USA in April 2009. Dean said the divestiture would include the 1,70,000-sq ft fluid dairy processing facility in Waukesha, near Milwaukee, along with equipment. Associated brands Golden Guernsey and La Vaca Bonita would also be included in the

deal, along with other related assets, said the company. The Justice Department had filed a lawsuit when it came to know about Dean’s deal to acquire Foremost Farms’ division. It was concerned that the deal would eliminate significant competition in the sale of milk in Illinois, Michigan and Wisconsin. In the proposed settlement, Dean agreed to sell the Waukesha plant, but was allowed to keep the facility in DePere.

gives consumers a great taste while helping them manage their weight and maintain healthy intestinal functions. Recent surveys conducted by Tate & Lyle show that fibre tops the list of nutrients that European consumers believe they lack the most, and that half are actively looking for food and drinks that are lower in sugar/calories. Tate & Lyle developed for its customers a Quince apple concept drink with these findings

in mind. “We are honoured to win this award. It is a great recognition of our ingredient and formulation expertise in the field of health and wellness,” said Isabelle Routier, Applications Manager, Specialty Food Ingredients, Europe, Tate & Lyle.

May 2011 | Modern Food Processing

WORLD NEWS EXHIBITION

SIAL China 2011 all set for success

SIAL China 2011, one of the largest food & beverage (F&B) shows in China with more than 60,000 sq m of exhibition area, is fully sold out. Speaking about STRATEGIC DECISION

Graham Packaging to buy Italian firm Graham Packaging has announced to buy Italian company Techne for Euro 8.8 million as part of its strategy to expand outside the US. The firm said its subsidiary in Italy, Graham Packaging Company Italia S.r.l., had committed to acquire the assets of Techne – Technipack Engineering Italia SUSTAINABLE PRODUCTION

Research study emphasises on innovation in local diversified food production

Food prices have soared to record highs and are projected to increase further in the coming decade, pushing millions of INNOVATIVE PRODUCT

PLA finds Alpi Deo Perfume candy most innovative product Hard candies that emit a smell of roses through the skin when consumed have been identified by Datamonitor’s Product Launch Analytics (PLA) as one of the most innovative products to hit shelves of late. PLA continually scours store

the event, Bjoern Kempe, Managing Director, SIAL China, said, “The excellent economic developments in 2010 and this year have convinced many companies to enter the Chinese F&B market. In total, we will have more than 80 countries and regions represented at SIAL China – a new high record in our 12-year history.” To be held from May 18-20, 2011, at Shanghai New International Expo Center, the event will witness

participation from major segments such as retail, catering, hotel/restaurant/café (HoReCa), food services, the import/ export trade and manufacturing. Following the Chinese high interest in wine and spirits products, SIAL China will have a dedicated hall for this segment. Kempe said, “We decided to move all wine & spirits exhibitors to hall E5. Wine & Spirits by SIAL China will be a wine show spread over more than 10,000 sq m.”

S.r.l – which produces extrusion blow moulding machines. Bologna-based Techne, currently in administration, produces bottles for food, beverage, pharmaceutical and personal care industries. It has installed more than 1,000 machines for 200 customers in 70 countries, said Graham. Under the terms of the deal, Graham would acquire intellectual property, inventory, fixed assets, customer

relationships and trade agreements. “Techne’s assets significantly expand our proprietary machine technology and allow us to continue to drive innovation and cost-effectiveness with our customers,” said Mark Burgess, CEO, Graham Packaging.

people into hunger and fuelling political unrest around the world. The Worldwatch Institute’s recently released report, ‘State of the World 2011: Innovations that Nourish the Planet’, shows that diversifying food production to include local and indigenous vegetables can help communities boost their self-sufficiency and protect vulnerable populations from price shocks. “The solutions to the price crisis would not necessarily come from producing more food, but from listening

to farmers, investing in indigenous vegetables, and changing how foods are processed and marketed,” said Danielle Nierenberg, Co-director, Worldwatch’s Nourishing the Planet Project. Over a 15-month period, researchers travelled to 25 countries in sub-Saharan Africa, highlighting stories of hope and success in agriculture. The project’s on-the-ground research unearthed hundreds of environmentallysustainable solutions for reducing hunger and poverty.

shelves across the globe to find the most innovative products, and recent innovation honour goes to Alpi Deo Perfume candy. These sweets contain rose oil components in the form of an ingredient called geranoil. The maker of this product claims that when the sweets are consumed, the skin emits these rose oil components. Tom Vierhile, Director, PLA, said, “Perfumed candy is a first for the

consumer packaged goods marketplace, and consumers in Bulgaria, the Czech Republic, and Hungary will be able to try them first. Only time will tell if a functional product like this can create a new market niche for candy that can make you ‘sweet smelling’, but it is certainly an intriguing idea.”

Modern Food Processing | May 2011

TECH UPDATES

Poly-Clip improves efficiency of clipping machine

BERICAP releases next-generation hystheresis capping head

To meet the high requirements of clip professionals, Poly-Clip System has further improved the performance of its clipping machine – the semi-automatic double clipper PDC 600/700. Features reserved to automatic machines in the past are now for the first time found in a semi-automatic machine. The separator of the PDC, which can be adjusted to the diameter of the product, ensures shorter lever movements. For smaller diameters, the separator opening can be reduced to suit the corresponding diameter range. This increases the performance of the machine. The new electric-pneumatic control ensures that the machine works even faster. The low air consumption of the machine saves money. For example, the optimised looper now only needs an air pressure of 3 bar. The semi-automatic doubleclipper PDC 600/700 is flexible to use. It can handle single portions, chains, calibre sausages, half rings as well as whole rings. Moreover, the machine can reliably close & efficiently process all plastic, fibrous, collagen and natural casings (within a diameter range of 20 to 115 mm).

BERICAP, a leading manufacturer of plastic closures, has launched next-generation hystheresis capping head. For more than seven years, the company has been offering capping head BVK, which is equipped with a hystheresis coupling, providing a constant application torque independent of the head speed, and hence independent from the filling line and capper speed. Many customers of BERICAP have appreciated the performance of the hysteresis capping head, which is offered along with supplies of closures. BERICAP has now released the next-generation capping head BNX, which provides an application torque at an even narrower range independent from the head speed compared to the previous solution. The height of the BNX is shorter to make the head mountable in all major capper configurations existing in the market. The BNX is liquid tight to prevent washing down of lubricants. Last but not the least, the capping head BNX allows adjusting the application torque simply by hand, without any special tooling. BERICAP is committed to develop innovative plastic closures to support its customers’ success. BNX capping head

Dehumidifier helps Cadbury save 60 per cent in energy use

Eurofins pioneers allergen multi-screening in a single analysis

Cadbury in Thailand has reportedly cut its energy use by 60 per cent and operating expenses by 50 per cent by changing the dehumidifier it used at its chewing gum plant. The DuCool DT-2400 liquid desiccant dehumidification unit installed at the Cadbury Adams’ plant in Bangkok is more efficient than the wheel dehumidifier system that was previously used by the company, claimed supplier Advantix Systems. According to Advantix Systems, the DuCool technology is useful in the production of chewing gum, where temperature and humidity control are pose challenges. Production requires tight control over moisture and temperature conditions, which can cause changes in the gum base. Too much moisture makes the gum too soft, but if the gum dries out it becomes too hard. In addition, before it is ready for consumption, chewing gum must be manufactured, rolled, stripped, broken and wrapped. “The non-toxic, brine solution cools, dehumidifies and cleans the air at the same time without needing to be replaced and without exiting the system. When heated, the liquid desiccant releases the moisture back outside, eliminating condensation from any point in the system,” said the company.

Eurofins has developed a methodology that allows direct detection of proteins from allergenic compounds in a single analysis using mass spectrometry (MS). Consistent with its mission of being at the forefront of laboratory testing innovation, Eurofins’ scientists have developed a method for allergen multi-screening effectively, and at a reasonable cost. Current methodologies only indirectly detect allergens, typically one at a time. The new method allows multiple direct detection of proteins from allergenic compounds in a single analysis using MS. It allows simple and easy identification of many allergens in complex food matrices, which leads to better risk management for food manufacturers, and ultimately, safer products for the consumers. The new MS-based methodology enables detection of 7 of the 14 groups that require labelling according to the European Commission’s allergen regulation (68/2007/EC) in one single analysis. In addition, the analysis also covers gluten regulation (41/2009/EC). Importantly, the direct detection of analytes significantly reduces the probability of false negative or false positive test results. Furthermore, the turnaround time and the cost of multi-screening are significantly lower than for individual ELISA-based tests.

Modern Food Processing | May 2011

TECH UPDATES

Coca-Cola uses eco-friendly packaging solution for its products in the US

Thermo Fisher’s new check weigher increases accuracy

The Coca-Cola Company has announced that DASANI bottles and Odwalla single-serving bottles will now be available exclusively in PlantBottle packaging – the firstever fully recyclable plastic beverage bottle produced using plants. PlantBottle packaging for both brands was developed with the planet in mind. “It is our goal to make traditional plastic bottles a thing of the past and ensure that every beverage we produce is available in 100 per cent plant-based, fully recyclable packaging. The national launch of DASANI PlantBottle packaging represents an important step towards reducing our carbon footprint,” said Scott Vitters, GM - PlantBottle Packaging Platform, The Coca-Cola Company. John Roddey, VP & GM, Water, Tea and Coffee, CocaCola North America, said, “Because DASANI PlantBottle packaging is up to 30 per cent made from plants and still 100 per cent recyclable, it was designed to reduce the impact of packaging on the environment.” PlantBottle packaging used for Odwalla is made of HDPE plastic, which is created using only ethylene that is derived from 100 per cent renewable sugarcanebased ethanol.

Thermo Fisher Scientific has claimed that its newly-designed check weigher, Versa Rx, for food applications can achieve the highest level of accuracy and reliability in a check weighing system. According to company officials, the system can run up to 550 products per minute and achieve accuracies of +/-0.050 gm at 3 sigma. The check weigher’s new design, featuring upgraded electronics, is said to deliver improved performance. Supplied with the Blackfin DSP signal processing chip, it allows the system to process information at a much faster rate, which allows customers to run higher production rates at lower linear speeds. The machine’s slack belt knife edge conveyor design ensures maximum product stability. According to the company, the system’s new single brushless-motor drive design has fewer moving parts, lowering customer’s maintenance requirements and reducing total cost of ownership. In addition, the system’s closed cabinet design is claimed to prevent external influences from affecting the weighing process. The Versa Rx can be equipped with a number of optional features including side belts transfers to assist with product transfers and helix infeed screw for small bottles.

French firm launches efficient form fill seal units

Aussie confectionery maker adopts eco-cooling system to cut CO2 emission

Arcil Group, the French machinery manufacturer, has reportedly developed two high-performance, lowmaintenance compact form fill seal units for dairy sector. Arcil’s new IziA4 form fill seal filler produces 14,400 cups/hour. The new models of form fill seal (FFS), the IziA4 and the EasyPlus, have been modified to meet its customers’ demand. IziA4, which is designed for use with yoghurt, pudding, baby food and whipped cream cups, produces 14,400 cups/hour in the 63 x 63 mm format or standard 125 gm labelled cups. Operating at speeds of 23,000 cups/hour for 125 gm cups with a standard label, EasyPlus accepts all cup and cut-out formats. Although the performance of these models is posted at 30-32 seals per minute (spm), it could reach 34 spm including 125 gm fruit yoghurt filling and in mould labelling, claimed Arcil officials. Both models have no mechanics below the plastic web, digital pulling by means of a feed pin chain and a toothed wheel for the plastic sheet; plastic heating by contact; integrated labelling with the firm’s helicopter system and independent presses. The models incorporate integrated automation, including: SimotionD automation from Siemens and Kinetix from Allen-Bradley.

Robern Menz, the confectionery manufacturer based in South Australia, has reportedly cut its CO2 emissions by 248 tonne annually by investing Aus$ 1.1 million in overhauling its energy-inefficient and ozone-depleting refrigeration units. Nearly half of the funding for the sustainability project, which is set to be completed next February, is being generated by a grant from the Australian Government through its ‘Retooling for Climate Change’ programme. According to Philip Sims, CEO, Robern Menz, as part of the financing assessment process, government auditors assisted the company in calculating the exact carbon and electricity savings it could realise from switching to a refrigeration system. He added, “By removing 25-year-old energy-intensive units and replacing them with a glycol piping system that runs throughout the facility, we estimate that by 2013-2014, we will see a reduction of 338 tonne in our carbon emissions in the region annually.” Work on the project is expected to commence soon and will include the installation of new internal walls, pipe-work installation, new compressors & pumps and the removal of older units.

Modern Food Processing | May 2011

LEADERS SPEAK

“The last decade has seen an explosion in innovative labelling and packaging solutions” …says Anil Sharma, Managing Director (Materials) South Asia, Avery Dennison. He is responsible for strategic and operational activities for driving growth, productivity and profitability, thus aiding the organisation to compete internationally. He holds an MBA from Indian Institute of Foreign Trade, New Delhi, and BTech from BITS, Pilani. In an interview with Mahua Roy, Sharma talks about the dynamics of the food packaging industry and the catalytic involvement of Avery Dennison.

Innovations at Avery Dennison Avery Dennison, a leading producer of pressuresensitive labelling material used across several segments like food & beverage, wine & spirits, pharmaceuticals, etc, has a proud history of pioneering innovations. For the past 75 years, we have had a series of market ‘firsts’ like: the world’s first self-adhesive label; first die-cutting method, in-line machinery & rotary die for selfadhesive labels; first method to successfully anchor ink to new film & foil surfaces; first print-your-own label & software compatible templates; introduction of ‘no-label’ look selfadhesive label material in the 1980s; and first to develop content-insensitive RFID labels. Today, Avery Dennison is transforming to an outwardly-focussed solutions provider that makes products more engaging, brands more compelling, inventories more productive,

Modern Food Processing | May 2011

information more valuable and our surroundings more understandable for the brand owners & their customers. In today’s dynamic markets, it helps customers improve shelf appeal of their brands through innovative products, provide enhanced functionality in packaging of products, and improve operational efficiencies.

Changes in food packaging industry The last decade has seen an explosion in innovative labelling and packaging solutions for the food & beverages segment. Consumers constantly demand more variety, which has led manufacturers to increase the proliferation of unique stock keeping units (SKUs). The growth of new brands has increased the importance of branding and shelf appeal for every product to capture the attention of consumers in the marketplace. The consumers in developing markets are more

LEADERS SPEAK

demanding and are fast changing to keep abreast with their counterparts in developed markets. Driven by impulse, consumers often make quick purchasing decisions; looks and product aesthetics are important drivers at this stage, thus, making packaging a key competitive advantage in food merchandising. The increasing importance of the environment and rising prices of oil have led packaging manufacturers to explore new ways to reduce packaging weight & switch to sustainably sourced materials while retaining packaging strength and integrity. The rise in use of bioplastics in flexible packaging, bottles and labelling is an emerging trend. Lower caliper facestocks & liners are increasing productivity and reducing packaging weight. Tamper-evident labelling technology helps increase consumer confidence in food safety.

Driving ideology By combining our unique capabilities with promising new ideas, we continue to develop next-generation solutions that set our customers’ products – and Avery Dennison – apart. Important aspects that we consider while developing and launching a new packaging solution include cost (so that the value provided exceeds the cost of innovation); application (to ensure that the technology exists to apply and adopt the new packaging concept); demand (the solution meets a genuine need in the marketplace) and safety (the solution is not harmful to the consumer, the environment or the packaging contents).

Responsibility towards environment Avery Dennison is involved in a number of environment-friendly initiatives around the world. The following are just a few examples: In North America, a number of our plants are piloting emission control technology that converts solvent manufacturing waste into an energy source that can be used to power

specific plant equipment and eliminate 99 per cent of those facilities’ volatile organic compound (VOC) emissions. An Avery Dennison business in North America has significantly reduced its waste stream by recycling one million pound of polyester waste from cast films for use in post-consumer products such as milk containers. In Europe and North America, we are partnering with waste recycling experts to collect and recycle liner waste from our roll materials’ customers and, as a result, reduce landfill waste. From 2005, lighting retrofit projects in North America alone have resulted in an annual carbon dioxide emission decrease of more than 22.6 million pounds and an energy savings in excess of $ 1.2 million annually for 15 locations. Our Retail Information Services operations are using water and soy-oil based printing inks for customer materials to reduce the need for hazardous solvents during disposal processes. We are investigating ways to use solar power in factories that have the technology and appropriate climate around the world.

Futuristic technologies Avery Dennison heavily invests in research and development across the globe. Exploring various ways to increase shelf appeal, add functionality, and enhance security & food safety is important. We see research for developing thinner materials, higher-performing adhesives and functional packaging as important tools to conserve the environment & improve the consumer experience as high priorities. Making packaging safer & easier to handle, and helping food last longer are important goals for us. Some of these technologies are already here and some are right around the corner. Avery Dennison perceives India/ South Asia as a key market and is working with the global R&D team to develop solutions for the emerging market. In its earnest endeavour the company invests significantly to enable the growth in these fast evolving markets.

Driven by impulse, consumers often make quick purchasing decisions; looks and product aesthetics are important drivers at this stage, thus, making packaging a key competitive advantage in food merchandising. Major challenges faced In a crowded marketplace with declining brand loyalty, consumer brands really need to stand out and make an impression on the consumer. In a market of such strong growth, India is seeing an influx of imported brands competing with local companies for consumer attention. Food manufacturers have a choice when it comes to suppliers to work with in a market experiencing such strong growth.

Plans for India India is one of the fastest growing economies in the world and we are proud to be investing in this market. Avery Dennison came into the Indian market way back in 1997 and we have seen strong growth in this market. Last year, we announced an investment to increase our production capacity of pressure-sensitive materials for labelling and packaging at our state-of-the-art plant in Pune. Avery Dennison has operations across India. Pune is one of three manufacturing facilities in India; the other two are in Gurgaon and Bengaluru. India’s market for sophisticated food packaging is fast developing. The capabilities of India’s packaging engineers are world-class and we are convinced of this capability & growth in packaging, and as such planning to continue investments in the strongly growing market in India. Avery Dennison can share its vast expertise and experience in developing and mature markets to support India’s initiatives in packaging innovation.

May 2011 | Modern Food Processing

ROUNDTABLE

Skilled manpower shortage

A growth deterrent? The last few years have witnessed encouraging growth for packaged foods. With this, food processing and packaging industries are full-fledgedly leveraging the emerging opportunities. To maintain the growth momentum, it is imperative to have skilled manpower. Unfortunately, dearth of skilled manpower is a huge stumbling block for the growth of the industry. In conversation with some of the industry experts, Prasenjit Chakraborty finds out the gravity of this issue.

A V Venkatesh Kumar Head-Human Resources Function, South Asia Region, Buhler Group With large business opportunities emerging in the food processing industry, organisations are investing heavily in the latest technologies and making efforts to understand the rapidly changing preferences of customers. With fast-pace growth come tough competition, different players and a volatile market. Technology and skills of the people are considered as key differentiators for tackling competition. However, the success of an organisation, be it any business, to a large extent is determined by its people. Competencies of people play a significant role in the development of business. In other words, an organisation may invest significantly in the latest technology and processes, however, skilled people are a must to optimally utilise their benefits for the growth of the company.

Modern Food Processing | May 2011

In the food industry, the gap between qualification and employability is significantly high. This is because, while there are different courses offered by reputed institutions on food processing and technology, the employability of students who pass out are yet to reach a level where they can move into an organisation and ‘start first day-first hour productivity’. The good thing is that organisations are now taking keen interest and collaborating with these institutions to generate talent pools that are suitable to them. In addition, some organisations like Buhler have come up with unique initiatives to create their own ‘plug and play’ talent pool. Buhler has made a huge investment and set up an academy with world-class training facilities equipped with the latest training equipment to groom young minds in different processes of the organisation. Through the Buhler example, one can see that while efforts are being made to bridge the skilled manpower deficit, it is important that these issues be tackled on a larger platform. Companies like Buhler have already made strides, and sooner or later others too would adopt similar strategies.

ROUNDTABLE

Harish Joshi Managing Director, Nichrome India Ltd As some industry segments like food processing and packaging reach industrial scale with consistent growth in the Indian economy, there is a rising need for new skillset acquisition by employees. As big companies start outsourcing many of their in-house activities to vendors, the skillset requirements for vendor organisations is also undergoing rapid change. In addition, the growth of almost every industry vertical creates a sudden demand for manpower. These factors are leading to a shortage of manpower and more so, the skilled manpower. The educational and vocational training institutes have to respond positively to this, and they are doing so to an extent. Some of the leading private industries are introducing

M Balasubramaniam Director, Garden Namkeens The skilled manpower shortage is posing a real challenge for all industries. The trend today with the incoming manpower is to move towards knowledge industry, which is offering better pay and working conditions. The traditional food industry is a brick and mortar business offering challenging responsibilities and tough working conditions. Hence, it is becoming increasingly difficult to recruit and retain talent. The shortage is acutely felt in getting skilled workforce, especially in specialty businesses like sweets and namkeens. The governmentâ&#x20AC;&#x2122;s social intervention programmes like National Rural Employment Guarantee Act (NREGA)

Sunil Adsule GM - Scientific and Regulatory Affairs, Coca-Cola India Inc Recent trends, not only in India but also in the global processed food industry, have generated huge demand for professionals & individuals with expertise & awareness on the latest issues and interventions in the field of food processing. Food industry is different from other sectors because of the high priority accorded to safety of the products and their influence on the consumer health. The aspects and intricacies of present world food supply chain are complex, which call for highly qualified professionals. Food industries need to interface with universities/colleges to upgrade the training infrastructure and update the subject areas, which in a few cases are obsolete

tailor-made specialised courses as part of the curriculum to create a workforce with appropriate skillsets. But still the shortage of skilled manpower is here to stay. Another way of tiding over this positively is by improving efficiency of business processes and re-engineering them. Companies will have to increase their budgets for manpower training and make customised management & technical training modules available to their employees to acquire new skillsets rapidly.

have made it tougher for the food industries to hold on to their skilled manpower. Though not very acute, but still the pressure is felt at the managerial levels also in the food industry, which is growing in double-digits and major players are entering the segment. The demand has outstripped the supply, and hence, the industry is suffering. It can be said that the food sector is at the crossroads as far as the labour issue is concerned.

and outdated. Active steps also are called for upgrading the skills and knowledge base of the teaching community that will shape future food technologists. Technical know-how, complemented by value-addition capabilities, marketing skills, international work ethics and global exposure are core assets of modern age professionals in the food industry. We need more institutions like the Central Food Technological Research Institute (CFTRI) in the times to come.

May 2011 | Modern Food Processing

SECTOR WATCH

The meat processing sector is slowly gaining momentum in the country. Currently, the marketshare of processed poultry meat is abysmally low when compared with total broiler production in India. Consumersâ&#x20AC;&#x2122; mindsets and lack of adequate cold chain facilities are the two predominant factors hampering the growth of this sector. However, the scenario is changing on both the fronts, which definitely augurs well for the industry.

Courtesy: Messe Frankfurt GmbH / Petra Welzel

Modern Food Processing | May 2011

SECTOR WATCH

Prasenjit Chakraborty

onsumer demand for poultry meat is rising, driven by change in its prices in relation to other goods as well as income growth. In particular, the introduction of vertical integration in poultry production has lowered the manufacturing & marketing costs and prices of poultry meat. The future pace of vertical integration in the industry is likely to have a huge impact on the rate at which consumers shift their preference for live birds to that of processed (chilled or frozen) products, a shift that will enable poultry integrators to expand their market reach and scale of operations. Finally, feed availability and prices play a central role in determining the costs of production and consumer prices. The eating-out phenomenon, with more quick service restaurant (QSR) chains opening up, is changing the consumption profile of Indians. The current chicken consumption is less than 3 kg per individual a year, and the poultry industry expects the consumption to double in the next few years. “Poultry meat is the fastest growing meat source in India; with an estimated production of 3,200 metric tonne, registering a CAGR of 10 per cent through 2000-2010. And

poultry’s share in the meat pie has grown from 15 per cent in 1999 to over 55 per cent in 2010,” says Nikhil DuBois, Managing Director, RND Practical Engineering. Indian poultry sector has witnessed significant growth during the last decade. The trend is likely to continue in the present decade also (20112020) as demand for poultry meat and eggs have been growing constantly. Broiler business is progressing at a fast pace, as poultry meat is the first choice of consumers, more so because it is economical. According to industry sources, in the poultry meat segment, average growth is around 10-12 per cent annually. With the expansion of the poultry companies, adoption of the latest technologies and reduction in the chain of middle men, poultry meat is now available to a larger population and at an economical price. India has the second-highest population in the world, but ranks fifth-largest in poultry meat production, constituting 2.9 million tonne. The US and China hold top positions, with production of 15 and 10 million tonne of poultry meat, respectively. According to Sushil Sawant, Associate Vice President - Marketing, R&D, New Business Development, Godrej Tyson Foods Ltd, the meat

Nikhil DuBois Managing Director, RND Practical Engineering

Poultry meat is the fastest growing meat source in India; with an estimated production of 3,200 metric tonne, registering a CAGR of 10 per cent through 2000-2010. And, poultry’s share in the meat pie has grown from 15 per cent in 1999 to over 55 per cent in 2010. processing industry has transformed in a big way over the last few years in India. “It happened in all respects, be it on the consumer front, food safety aspect, retail front, or others. Quality is no more restricted to the certificate stage, rather it has percolated down to the different processing stages as well.” Echoing similar sentiment, Dr V R Tijare, General Manager, Venky’s India Ltd, says that over the years, there has been a shift in consumers’ preference. Citing an example, he states, “Earlier, the demand was mainly for whole chicken and pre-cut chicken, which is now replaced by value-added products like boneless chicken meat, portions, and more

14% 5%

30%

10% 10% 31%

Beef Pork Disc plucker used in meat processing

Buffalo Sheep

Chevon Poultry

Source: Hind Agro Industries

Courtesy: RND Practical Engineering

Figure 1: Current meat production in India

May 2011 | Modern Food Processing

SECTOR WATCH

Sushil Sawant Associate VP - Marketing, R&D, New Business Development, Godrej Tyson Foods Ltd

The meat processing industry has transformed in a big way over the last few years in India. If you look at fully cooked meat category, then the option of making the product using technology as a benchmark or technology as aid has changed significantly. categories such as processed, and ready-to-eat easy-to-cook chicken products.”

class with increasing per capita & disposable income, apart from rising cereal prices and stable poultry prices. With a poultry population of 489 million, and estimated production of more than 532 billion eggs, India ranks among the top three countries in egg production in the world. While the production of agricultural crops has been rising at 1.5-2 per cent a year, the broiler production is growing at the rate of nearly 8-10 per cent every year. Moreover, the growth in production of poultry/chicken meat increased from mere 0.12 million tonne in 1981 to 2.2 million tonne presently.

With the prices of pulses – a main source of protein – ruling high, consumers are now turning to poultry for their health needs.

Prospects for poultry sector If the ongoing activities are any indication, then the Indian poultry sector is heading for a bright future. The industry has transformed this business from a mere backyard agricultural activity to a profitable, dynamic commercial venture. It has emerged as one of the fastest growing segments of Indian agricultural sector; its growth is driven by an increasing urban population, a surging middle-

Courtesy: Messe Frankfurt GmbH / Jochen Gunther

No doubt the change in eating habits and growth of fast-food outlets and QSRs speak highly in favour of improvement in the levels of poultry production. However, there are many risks involved with the industry. The poultry industry has suffered major losses on account of problems such as bird flu and spiralling costs of feed materials such as maize and soya because of low production, among others. Going by the Meteorological Department’s outlook of good monsoon this year, and with the crop cycle improving for feed crops, coupled with a rationalisation of prices, this industry holds huge promises. However, it needs to be noted that livestock is an industry where diseases such as avian flu can mar the best-laid plans. With the prices of pulses – a main source of protein – ruling high,

Modern Food Processing | May 2011

consumers are now turning to poultry for their health needs. The sector will stand to gain as long as this trend continues.

Technology and its impact The meat processing constitutes two distinct sectors – raw meat processing, and fully cooked & ready-to-cook categories. The raw meat processing segment has not witnessed much development on the technology front. Whatever technology is used in this segment is mainly meant for capacity augmentation. Unfortunately, the demand is not high in India to go for upgradation or capacity increase. But things are changing and new sophisticated slaughter houses are coming up in the country. “With the growth of other industries, meat processing sector also needs to grow. We have a strong backend, where we have good poultry firm, effective bio-security and talented veterinary doctors. The challenge for the industry is the investment required to support the growth. In the last three to four years, we have seen many players entering slaughter house business. The southern region of the country has made significant progress in this direction. But there exists several gaps in terms of capacity,” points out Bhupinder Singh, CEO, Vista

Bhupinder Singh CEO, Vista Processed Foods Pvt Ltd

The challenge for the industry is the investment required to support the growth. In the last three to four years, we have seen many players entering slaughter house business. The southern region of the country has made significant progress in this direction. But there exists several gaps in terms of capacity.

SECTOR WATCH

Currently, it is just about 15-20 per cent. So there lies a huge opportunity to be tapped.” Number of manufacturers in India have invented as well as brought in sophisticated technology in many arenas. However, the problem lies in matching the requirements. “Internationally, machine processing capacity or scale is huge. In the growing stage, we cannot afford to bring in those huge machinery and run our plants,” says Sawant.

Shift in market

Courtesy: Messe Frankfurt GmbH / Jochen Gunther

Processed Foods Pvt Ltd. Currently, on an average, raw meat processing is significantly low in India. “In the category of raw meat, we have to go for higher bird processing plants – around 10,000-12,000 birds per hour. Today in India, the figure stands at 4,000-6,000 birds/hour,” says Singh. It seems that entrepreneurs are sitting on the fence, but it is believed that once the demand picks up, they will certainly swing into action. The second category of meat processing sector has witnessed significant changes. The reasons are many, which include consumers’ desire for new food & taste, rapid growth of fast-food joints, retail revolution, etc. “If you look at fully cooked meat category, then the option of making the product using technology as a benchmark or technology as aid has changed significantly,” says Sawant. Looking at the population of India, processed meat sector can best be branded as nascent. So is it because of lack of state-of-the-art technology? To this question, Sawant categorically replies, “Equipment is not the bottleneck. I think we have to work towards changing consumer mindsets because their acceptance of processed meat food is quite low in India.

India is traditionally a wet market. Over 80 per cent of broilers are sold live in the Indian market. To shift to a ‘dressed chicken’ market, the lack of cold chain infrastructure poses a severe constraint. Big poultry companies are developing cold chain facilities, but it takes time to develop

Anticipating the growth, companies have now started paying attention towards packaging aspect as well. the scale required for the vast Indian market. Take the example of NorthEast region of the country, which has tremendous scope for growth of processed meat, but lack of cold chain facilities mars the prospects to a large extent. “The North-East region of the country has tremendous potential for growth, but lack of cold chain facilities is a stumbling block. Beyond Guwahati, the infrastructure for this kind of product is virtually nil,” laments Sawant. The concept of cold chain is relatively new in India. The problem further aggravates with energy shortage throughout the country, which makes it even more difficult, as cost escalations are high in terms of cold chains. Multinational companies

involved in cold chain infrastructure can help to develop the system faster. Over the next 5-10 years, the dressed chicken market is expected to rise significantly in the total broiler meat market. Processing plants and big retail chains are driving growth, and meat processors are developing their own franchise shops for the sale of meat products. Of late, the government is paying much attention on infrastructure and cold chains. Cold chain development is not just essential for meat processing, but for the entire food processing industry. That apart, industry analysts feel that the demand for meat products is bound to increase, as they foresee a good future for take-away readyto-eat dishes being sold in the super markets, with increasing outlets in big metros. There is a rapidly increasing demand for processed food (meat) driven by rising urbanisation and income levels. This is supported by the number of people preferring to live in nuclear families, rather than joint families. Rise in employment, with more of adult working ratio, and prime factors like, change in consumer eating habits as well as rising demand for health, wellness and lifestyle products, coupled with inflated take-home packages provide tremendous growth opportunities for the meat sector. “Today, poultry

Courtesy: Godrej Tyson Foods Ltd

May 2011 | Modern Food Processing

SECTOR WATCH

processing market is just five per cent of the total live poultry market,” points out Singh. Companies are leaving no stone unturned to attract consumers by launching innovative products from time to time. For instance, Venky’s has launched a wide range of ready-to-eat products like Butter Chicken, Murg Masala, etc. “This segment is growing fast and we are planning to launch more ready-to-eat products, which suits the Indian palate,” reveals Dr Tijare. Similarly, Godrej Tyson is constantly innovating its products, keeping consumer preferences in mind. “We make sure that we follow ethical practices in terms of our food products. We want to maintain the purity of non-vegetarian food in the right manner, and also maintain food safety standards at the very best level,” observes Sawant. To infuse further growth, it is equally important to have skilled manpower. Unfortunately, there is dearth of skilled manpower in this segment. “Another issue that needs attention is non-availability of skilled and trained manpower – especially qualified food technologists. The industry needs a large pool of such skilled manpower to facilitate future growth,” exhorts Dr Tijare.

Packaging options Packaging is an important factor, not only for making the products look appealing, but also for preserving and increasing the shelf-life of products. Government legislation in this regard also enables the consumers to get information on product contents, nutritional aspects and instructions for utilisation of products, which are printed on the package. It seems that on meat packaging front, the development is not encouraging, hence needs to traverse a long distance. “Not much development is happening on the packaging front. Rather, the effort is focussed on presenting the product,” opines Singh. Anticipating the growth, companies have now started paying attention towards packaging aspect as well. For example, Venky’s R&D team has been working on standardising packaging for raw and frozen products. “We also market some of the processed, ready-to-eat products in Extruded Polypropylene (XPP) trays, which can withstand temperature of -20ºC and can be heated in a microwave oven to enhance convenience in cooking,” says Dr Tijare.

Progress in process No doubt, there have been some interesting developments in the processed poultry meat industry, but ultimately it depends on consumers’ acceptance of this category of meat. Once the consumers of B and C class cities start buying such products, the industry will grow by leaps and bounds.

May 2011 | Modern Food Processing

INDUSTRY UPDATE

Indulgent foods

Baking a successful business Making birthdays and cakes synonymous, the bakery industry is credited with the accolade of presenting possibly the oldest example of a planned purchase of an indulgent product. With new marketing strategies and attractive packaging solutions, the prospects of this industry seem promising, as it is also backed with a wide spectrum of target audience.

Modern Food Processing | May 2011

INDUSTRY UPDATE

Mahua Roy

rost & Sullivan estimates reveal that the Indian bakery market earned revenues of over $ 161.4 million in 2007 and this figure is expected to grow at 8 per cent to touch $ 278.1 million in 2014. The transition of the bakery industry into a more organised one is aiding its upward thrust. “The bakery industry in India is slowly undergoing a transformation from a completely unorganised sector to a more structured one. The unorganised sector, which accounted for over 70 per cent of the market in 2003, now forms a little more than half the total bakery products market,” says Natasha D’Costa, Industry Analyst, Chemicals, Materials and Food, Frost & Sullivan.

Natasha D’Costa

Wealth in health One of the most profitable ventures for the bakery industry is the emphasis on healthy products. Preventive care is being preferred over therapeutic care, thus opening a wide range of opportunities in product developments and use of functional ingredients for value addition. “The industry is focussing on the health-conscious urban consumer, which provides a platform for premium pricing on the basis of value addition. The entry of omega-3 fortified bread into the Indian market is an indication of the strategic intent of the industry,” opines D’Costa. But again, positioning a traditionally indulgent item on a health platform is quite a challenging task. Measures are being taken, with food processing industry working in sync with ingredient manufacturers & food

Trends in bakery ingredients: Natural and healthy R Enzymes: These are fast replacing emulsifiers. Also, enzyme-emulsifier

blends are being used to achieve desired functional properties in baked foods. To aid processing of whole grains in baked foods, enzymes are being used R Emulsifiers: Lecithin, a natural ingredient, is used extensively as emulsifier.

It forms an integral part for processing of low-fat, low-calorie, sugar-free, vitamin or mineral fortified baked foods R Flavours: Dominant flavours include vanilla, chocolate, strawberry, cocoa,

orange and cinnamon. Natural alternative to flavouring agents are given emphasis. Also, ethnic, fusion and functional flavours are being favoured. Dry powder flavourings and controlled release flavourings are gaining more importance

Industry Analyst, Chemicals, Materials and Food, Frost & Sullivan

The industry is focussing on the health-conscious urban consumer, which provides a platform for premium pricing on the basis of value addition. The entry of omega-3 fortified bread into the Indian market is an indication of the strategic intent of the industry. scientists, to come up with the best possible solution in order to align indulgence, taste and health alike. “It is important for companies to understand one basic ethos of the Indian market: Taste comes first, health comes later. Brands that understand this do well. Even the healthiest options need to be packaged with the overt cues of best in taste. Brands that attempt to do the reverse tend to fall by the way-side of consumer acceptance,” explains Harish Bijoor, CEO, Harish Bijoor Consults Inc, a private-label consulting firm specialising in brand and business strategy.

Convenience matters

R Colours: R&D is directed towards use of natural alternatives of colouring

agents. Micro and nano encapsulation technology has enabled the usage of highly unstable natural colours (turmeric, anthocyanins, etc) R Starch: Usage of resistant, native, specialty/modified starches are seeing an

increased demand due to changing eating habits of consumers R Omega 3 and Omega 6 PUFA ingredients: Trend towards healthy

snacking is benefitting Omega 3 and Omega 6 PUFA ingredients suppliers. These functional ingredients are claimed to aid cognitive skills R Pre and probiotics: Live micro-organisms (probiotics) and functional fibres

(prebiotics) are extensively being used in baked foods. These ingredients play an important role in enhancing and maintaining gut health. A step further, symbiotics are being developed, which contain functional amounts of pro and prebiotics Source: Frost and Sullivan

Convenience is emerging to be a critical reason behind new product developments. Launches aimed at easy on-the-go consumption are well-suited for the present busy lifestyles. It has also led the food packaging industry to align itself to these common goals of offering convenient packaging and healthy products. The packaging of bakery products is closely interlinked with production, preservation, storage, transportation and marketing. Packaging, especially of bakery products, is the harmonisation of science, art and technology. Product appearance significantly influences impulse purchases of bakery items, and, therefore,

May 2011 | Modern Food Processing

INDUSTRY UPDATE

constitutes an important consideration in the purchase of such products. Next to appearance is the aroma and price. Attractive displays play a vital role in making a purchase decision. Pre-baked and freshly delivered products are among the fastest growing segments. In response to this trend of on-the-go consumption, bakery manufacturers have launched products with smaller portions in consumer-friendly packs. But this segment faces stiff competition from traditional positioning of confectionery products. “Currently, Indian consumers prefer confectionery products over bakery products as onthe-go foods. This is attributed to the fact that confectionery products are cited as light snacking products, while bakery products fall under the short meal category. Repositioning of bakery items as on-the-go products will be an extremely risky proposition, as it will require a complete upheaval of the current Indian mindset. Further, if successful, it will compete with other bakery products, which are currently positioned as health foods. Such a mixed message could well take bakery products out of the race of the Indian health foods market, which is currently growing rapidly,” opines D’Costa.

Harish Bijoor CEO, Harish Bijoor Consults Inc

It is important for companies to understand one basic ethos of the Indian market: Taste comes first, health comes later. Brands that understand this do well. Even the healthiest options need to be packaged with the overt cues of best in taste. Brands that attempt to do the reverse tend to fall by the way-side of consumer acceptance.

Audience with different tastes The major and eternal growth driver for bakery products is its labelling as ‘affordable indulgence’. Cashing in on this evident trend, manufacturers are looking at ways to ensure better market penetration and reach of their products. By introducing the favourite brands in smaller, trial tasting portions, manufacturers are building a customer connect by encouraging them to try the new products, and thereby build brand loyalty in the long run. Also, the evident rise in upscale retail outlets has increased the acceptance of gourmet bakery products, leading to the introduction of in-store bakeries. “On-site manufacturing of bakery products in bakeries and supermarkets directly contributes to the trend of

To appeal to the adult population healthy variants of bakery products are being launched. indulgence. This is because the smell of freshly baked breads and other baked products is a strong motivational factor in impulse and subsequent purchases,” says Prakash Nair, National Sales Manager, Monginis Food Pvt Ltd. Indulgence and luxury products are becoming more pronounced in the bakery industry. “Consumers are increasingly looking for premium, gourmet and exotic products to satisfy their desire to indulge. Premium bakery products offer superior taste experience and are usually rich in fat and calories,” he adds. Product segmentation also plays an increasingly important part in manufacturers’ product development strategies, leading to a growing number of products targeting specific consumer groups such as children, young adults and the elderly. Children have long been targeted as a specific group, with strategies

Modern Food Processing | May 2011

Prakash Nair National Sales Manager, Monginis Food Pvt Ltd

On-site manufacturing of bakery products in bakeries and supermarkets directly contributes to the trend of indulgence. This is because the smell of freshly baked breads and other baked products is a strong motivational factor in impulse and subsequent purchases. including the introduction of childoriented flavours, tie-ins with movie & television characters and novelty products. However, segmentation in the adult category has come in for more concentrated attention from manufacturers recently. “The cakes and pastries sector is displaying innovation & differentiation with a mix of sophisticated and ethnic flavours as well as healthy variants such as low/ light, fat-free and sugar-free products. The onus is now on speed and versatility when addressing consumer demands,” says Nair. To appeal to the adult population, which is proving to be a prominent growth driver of this industry, healthy variants of bakery products are being launched. These promise products with prebiotic ingredients, calcium fortification, etc, as well.

Marketing strategies Cross-positioning of bakery products can prove to be a prominent solution towards maintaining steady marketshare, and thus avoiding saturation. “Having a keen focus on R&D for product innovation, and thereby distinguishing itself from other competitors, is a solution. By conjuring quality breads, pastries and many other baked goods that reflect

INDUSTRY UPDATE

the latest market trends and are in tune with contemporary lifestyles and customers’ ever-changing taste profile, the brand can set itself apart. This also ensures the successful ability to create, adapt and cross-position products across different markets,” says Jason Koo, Senior Vice President - Franchise, BreadTalk Group Ltd. Another simplistic and innovative solution offered by Bijoor relies on presenting a holistic offering to the consumer. He explains, “Crosspositioning a bakery product with a beverage is a great idea to use here. In the US, bagels go with coffee. In Europe, donuts go with coffee. Some QSR chains such as Dunkin Donuts have made on-the-go a part of their cuttingedge differentiated business model. And it works. As India becomes more onthe-go oriented with working couples, breakfast itself is going to become an on-the-go item, as also lunch. In these two contexts, one needs to position the bakery product as a quick and healthy option. And as learnt from global counterparts, it needs the company of a beverage though. A fruit juice and a muffin might just be right!” But this strategy too has a drawback. As opined by D’Costa, “Crosspositioning of bakery products can be achieved by placing emphasis on the brand focus of each product. However, it is likely that these products, while under the same umbrella brand, will

be branded differently with completely different packaging, positioning and brand messages. Thus, in spite of the differentiated branding, companies often end up sending mixed messages to the consumer, ultimately decreasing the brand equity of the umbrella brand, through a lack of focussed positioning.

Bitter challenges The challenges faced by the organised bakery sector at present are low margins of profit due to hike in the prices of major raw materials like sugar, vegetable oil, milk and wheat flour. “The bakery industry faces stiff competition from the unorganised sector, which caters to the lower income groups. Also, the lack of entry barriers in the industry poses a threat to current manufacturers of bakery products. Industry participants are

Increasing consumer demands for healthy, convenient & tasty food have prompted the bakery manufacturers to differentiate and innovate baked products. forced to rely on existing brand equity and undertake value addition to their products to gain a competitive edge in the market. Of late, the bakery industry has witnessed a slew of new products targeted at health-conscious consumers – a niche segment where the industry can afford to charge a premium. Further, the increasing price of ingredients, both regular and functional, is likely to have an adverse impact on margins and profitability,” says D’Costa. Also, with the slew of foreign bakery brands entering the Indian market, there are certain challenges that need to be addressed. For instance, BreadTalk, an international lifestyle boutique bakery brand from

Jason Koo Senior Vice President - Franchise, BreadTalk Group Ltd

By conjuring quality breads, pastries and many other baked goods that reflect the latest market trends and are in tune with contemporary lifestyles and customers’ everchanging taste profile, the brand can set itself apart. This also ensures the successful ability to create, adapt and cross-position products across different markets. Singapore faced problems related to pricing. Says Koo, “As an international bakery brand, we need to be sensitive to issues such as product pricing in a market like India due to the differences in local living standards. Some raw ingredients are not easily available in the country and have to be imported. However, due to the high import tax, it is a constant challenge for us to maintain an affordable and competitive pricing. We also face a cultural challenge, which entails converting more consumers to adapt to our product offerings.”

On a sweet note With globalisation and cultural integration, eating habits of the discerning urban as also rural consumer are changing fast. Increasing consumer demands for healthy, convenient & tasty food have prompted the bakery manufacturers to differentiate and innovate baked products, in order to capitalise on these trends. Changing consumerism is witnessing competitive product innovations along with retail formats; and in-house brands are poised to be great platforms for product push in the near future.

May 2011 | Modern Food Processing

PRACTICAL TIPS

Financial communication

Disseminating information effectively Companies across industries, especially those in the food sector that are subject to regulations and standards-related issues, aim at communicating financial information effectively to all concerned stakeholders. Generally, a financial report comprises details on a firm’s values, market status, profitability and future strategies, among others. Here an attempt has been made to provide insights on preferred practices to help companies in writing reports efficiently, and thereby improve their financial communication.

ompanies use different methods to provide financial information pertaining to their positioning & markets, values & strategies and profitability. Thus, companies aim to transform their annual reports into effective communication tools. The primary function of corporate annual reports is to present large amount of data required by accounting standards as well as by national and international regulations. Nevertheless, in recent years, these reports are getting bigger with additional information aimed at shareholders, bankers, potential investors and other readers of financial information. Subjects treated in institutional publications include promotion of the company & its products, affirmation of its values and socio-economic implications of its markets. Food companies, which are especially subject to regulatory constraints, address these subjects in detail. Even though this practice has become common, it remains nonstandardised. Nonetheless, there are certain best practices that would improve the communication quality of companies in the food sector. Given below are some of these practices, which companies have tried & tested, and reaped benefits too.

Modern Food Processing | May 2011

Company and its market Financial reports are intended to be read by various readers, who have different points of view. It is imperative for a company to know how to present itself, its market & performances in an educational and creative style, prior to discussion of financial items. Given below are six preferred practices adopted by companies for this: Present the company’s market position: Food companies operate in worldwide markets that are globalised & highly competitive, and even volatile. But they tend to be defensive in economic downturns because of the persistent need for food. Therefore, it is vital that these companies provide a summary view in their annual reports that is updated and relevant to the different markets in which they function. Companies should also provide information on their positioning. As much for regulatory reasons – for eg, International Financial Reporting Standards (IFRS) 8 requires disclosure per operating segment – as for relevance, the reporting data most commonly utilised are listed by geographic area. In this framework, companies often choose to specify their key indicators by country, whether the

PRACTICAL TIPS

data is quantitative (volume produced, marketshare) or qualitative (brands commercialised). Identify main competitors: Some companies have also chosen to provide the reader with the names of their biggest competitors and to describe in detail their position vis-à-vis those competitors. In addition, most of these companies work with a highly diversified range of products, and some of them list the segments in which they are competing. Express values clearly: In an increasingly regulated context of inexorably maturing markets, one of the principal differentiating factors for a company is the values by which it does business. These values are also representative of the strategic direction to be followed in the medium term. Communicate the strategy: Discussing long-term targets remains the best way to improve financial communication. Although the food industry has a clear view of consumer behaviour, it is constrained by highly structured external factors: the sourcing and pricing of raw materials, changes in consumer behaviour & distribution channels, public health regulations, health standards, etc. The reactions of different companies to the constraints they confront are as diverse as the issues addressed by them. It, therefore, seems essential for each group to detail its strategy by explaining its development priorities, such as gain in marketshare, improved profitability, international development or progress in high-potential countries, support provided for existing brands and acquisitions. Some companies also provide quantified performance indicators that serve to illustrate their comments. Summarise the material events of the fiscal year: The fiscal year’s material events are always detailed in the management report prepared by the Board of Directors. However, because this document is separate from the annual report, some companies consider it worthwhile to provide a

summary of the material events of the previous fiscal year at the beginning of their annual report. The reader may refer to this convenient summary for material events that will be echoed through the financial statements, as well as for the fiscal year’s major undertakings, which are the immediate consequences of implemented group strategy. Analyse the performance: Companies aim to demonstrate established targets that were met in the previous fiscal year, and analyse achievements. Because the food sector constitutes easily comparable companies, it is important for them to value their performances to the extent possible. Given this context, it is especially appropriate for each company to position itself vis-à-vis the market & the competition, and to satisfy readers’ needs directly by commenting on its profitability, and on what will inspire confidence in the years to come. In these comments, shareholders can find information on dividend payments, bankers can confirm that the company is in good health and investors can look for opportunities not to be missed.

Brand value and performance For companies in the food industry, brand dynamics – a major contributor to growth & gains in marketshare – remains the biggest contributor to overall performance, and is, in this sense, a key indicator for the final reader of financial information. Companies can distinguish themselves from their competitors by emphasising on their R&D and investment policies, as well as the value, performance, and responsibility of their brands. Given below are some of the practices followed by companies to communicate specifically on their actions and strategies, in addition to the standard requirements. Emphasise research & development activity: In the increasingly mature markets of Western countries, the development of new markets is rightly considered as a growth tool and a means for improving

Communication areas After reading publications made available to the general public by certain companies in the food sector, one can identify four subjects on which organisations have chosen to communicate through relevant and original methods in terms of market expectations. These are: R How the company presents itself

and describes the market in which it operates R How much of the publication

is devoted to brand value and performance R What the sector-specific risks are

and how they are approached R How the company emphasises

the issues related to sustainable development and socially responsible behaviour

profitability. In emerging markets, the issue is how to adapt to the habits of local populations. This is especially true in the case of food industry, where constant innovation is required if companies are to satisfy consumer expectations and distinguish themselves from their main rivals. Given these conditions, one can understand the importance of explicit quantitative data not only on the extent of R&D, but also on the targets of the group R&D policy, in order to emphasise the company’s efforts in the areas of nutrition, healthcare and legislative requirements. These targets are particularly useful for announcing the number of new products a company intends to launch over the next few years. Explain the investment policy for new markets: As previously discussed, the development strategy for emerging markets requires the creation of innovative products that: meet the tastes of local consumers, are appropriate for local purchasing power, can be distributed through even unusual channels and can sustain significant growth. It is interesting

May 2011 | Modern Food Processing

PRACTICAL TIPS

for a company to dedicate part of its financial communication to the actions carried out in emerging countries and to relevant brand policies, if it is Indian, Chinese & Russian markets, where companies invest the most & currently have the highest growth rates. Present the brand portfolio: Food companies usually operate simultaneously in several different markets (hypermarkets & supermarkets, small & medium-sized grocery stores, fast-food chains, etc) and work with a brand portfolio that is often extremely varied. It is, therefore, useful to list the different brands under which the company operates, as well as brands on which the company bases its image and marketing actions. This line of communication provides the opportunity for a graphic layout intended to present the brands according to their strategic importance. The use of visuals also allows the reader to identify a given product quickly. Measure the brand values: For companies in the food sector, a strong brand guarantees recurrent cash flow in a context where private labels and discount stores are gaining marketshare. A strong brand also bars entry to new competitors in a sector that is highly regulated. In addition, because brand portfolio value provides ammunition for negotiation with distributors, it is considered key information by readers of financial communication. Here, it is vital that companies communicate the strength of their brands and the actions intended to promote them & protect their value.

Emphasise the efforts made for brand responsibility: Given the increased media coverage of public health problems due to poor dietary habits and abuses, companies in the food sector find themselves compelled to show that they take into consideration the impact of their products on the quality of life and health of their consumers. The idea of ‘responsible consumption’ responds to a strong market trend, and therefore is included in financial communication. Some companies turn this regulatory constraint into an advantage by emphasising the efforts made to

For companies in the food sector, a strong brand guarantees recurrent cash flow in a context where private labels and discount stores are gaining marketshare. promote and take responsibility for their brands’ social responsibility, while also presenting their financial situation in concrete terms.

Risk management International standards require information on the external risks faced by a company. The complexity of publishing such information lies in the difficulty to avoid the temptation to merely list the risks, and thereby apparently satisfy the company’s obligation. Good communication of risk management means highlighting its capacity to deal with risk management. By observing an active risk management policy, the company defends its core assets, interests and environment. Companies in the food sector choose to focus their communication on a range of risks specific to them, especially risks related to raw materials, health standards, company-specific commercial contexts and changing

Modern Food Processing | May 2011

consumer behaviour. Mentioned below are three commonly followed practices by companies in this regard: Understand the health risks: Consumer concerns about food and regulatory requirements for food safety and product traceability force companies to reassure the readers of their financial communication. In addition, investors assess how well a company understands its market health risks. Describe the commercial risks: As prescribed in regulatory requirements, commercial risks are usually discussed in the notes to the provisions. While some companies prefer not to provide specific information on current commercial risks in order to avoid helping the competition, other companies consider it useful to discuss some business in detail by summarising the cause and effect of a commercial dispute that is considered major. Mention the risks related to changes in consumer behaviour: Because the distribution market for food sector products is constantly changing, analysing the current consumer behaviour and trends becomes a constant challenge. Some companies opt to include risk analysis in their financial communication to show that they are aware of the need to be able to meet the ever-changing expectations of consumers and always to have their products in the stores.

Sustainable development Companies in the food sector have fully understood the importance of sustainable development, and have adapted, improved & increased their communication on this theme either in a separate report (by choice or by obligation) or directly in their annual report. Companies now show that they endeavour to promote sustainable development, contribute to improving nutrition in developing countries, anticipate food-related crises, and provide disclosure on partnerships with

PRACTICAL TIPS

their main suppliers. This information proves that the company is involved in the changes happening in the contemporary world, and thereby can demonstrate its integrity, code of ethics & adaptability. These values serve to comfort shareholders and other investors. Following are some of the best practices adopted by companies to communicate on the sustainable development initiatives: Support sustainable farming: Sustainable farming can be defined as an agricultural production system designed to guarantee continuous food production by observing ecological, economic and social limitations, which ensure that production is maintained over time. In their efforts to promote sustainable farming, some companies encourage initiatives related to environment-sensitive farming, follow an integrated approach to fighting insect menace & diseases, limit fertiliser use, promote water management, protect wild fauna & flora and aim at revitalising biodiversity. Naturally, these actions are highlighted in corporate financial communication. Contribute to improving nutrition in developing countries: Adapting an economic model to the needs of a developing country, or

designing products for populations with specific nutritional needs, helps to narrow the divide between developed and developing countries. Today, there are private initiatives under development – presented in the sustainability reports – designed to make food available to low-income consumers throughout the world. Anticipate a shortage of natural resources: The increased scarcity of natural resources, particularly water, is a real problem that is already affecting many regions around the world. This situation is largely due to climate change, increased demand for food due

Today’s readers of corporate financial information demand a concrete image of companies, their environment and commitment to larger societal problems. to demographic growth and economic development. Some groups, foreseeing possible nutritional insecurity issues, choose to communicate on how they plan to anticipate this possible crisis, and on the means implemented to prevent it. Work with suppliers and subcontractors towards a more responsible approach: A sustainable development policy is not worth much, if a company merely transfers to its subcontractors the environmental and social constraints related to its obligations. The issue is made more relevant by the increasing dependence on local suppliers in socially and politically sensitive countries, where national laws are often less burdensome with regard to sustainable development. These laws could be pertaining to human rights at production sites in developing countries, respect for the environment or hygiene in product components

& packaging, employee safety at dangerous sites; issues regarding gas and other noxious emissions resulting from the production process or merchandise transport. Helping suppliers become more responsible and working with them to respect the contracting group’s principles, illustrates the determination to apply a global approach to responsibilities – an approach emphasised in corporate publications.

Providing relevant details Despite various policies and homogenisation of standards that contribute to standardisation of financial communication content, it seems useful for industry participants to distinguish themselves both in terms of their performance and presentation of their activities. Today’s readers of corporate financial information demand a concrete image of companies, their environment and commitment to larger societal problems. A simple presentation of earnings no longer suffices, as readers want access to information that meets their needs. The aforementioned best practices followed by the food sector will serve as original and relevant means to improve a company’s financial communication, thus aiming to increase the value of the company, its activities & performances. Courtesy: KPMG Audit France This article is based on the KPMG Audit France’s study, ‘The food industry: 18 industry preferred practices to help improve your financial information’, published in December 2009. This study was based on the 2008 annual publications of a sample of 13 major food companies listed in Europe, the US and Asia. The original document is available on: http://www.kpmg.fr/fr/news/etudeagroalimentaire-bonnepratique-09.asp For details, contact Alphonse Delaroque (Partner, KPMG Audit France) on email: adelaroque@kpmg.fr

May 2011 | Modern Food Processing

TREND ANALYSIS

Alcoholic beverages

On a new high! The alcoholic beverages sector in India has exhibited consistent annual growth during the last few years owing to increased acceptance of alcohol consumption by society at large. The country offers immense untapped potential for alcohol manufacturers, thanks to the increasing demographics, especially young population, surging economy and high income job opportunities, to name a few.

Amit Srivastava

ately, India is turning out to be an attractive destination for global players in the alcoholic beverages sector as consumption of alcohol has saturated in many countries and even declined in traditional markets like Europe. However, India offers immense growth opportunities. It is the primary producer of alcohol in the South East Asian region and contributes to around 7 per cent of the total alcohol beverage imports into the region. The high alcohol production in the country can be attributed to the adequate supply of raw materials, such as molasses, barley, maize, potatoes, grapes, yeast and hops, which are widely used for the making of alcoholic beverages. This has helped to achieve high volumes for Indian Made Foreign Liquor (IMFL), a term used to distinguish Western-style hard liquors from Indian liquor. With a Compounded Annual Growth Rate (CAGR) of 18 per cent during the period 2005-10, the alcoholic beverages sector was estimated to be worth $ 25.4 billion in 2010 and is estimated to cross $ 39 billion by 2014.

Modern Food Processing | May 2011

Market scenario in India Indian alcoholic beverages sector has evolved rapidly in the last few years compared to other growth economies such as Brazil, Russia and China. The per capita expenditure on alcohol in India registered the highest growth among Brazil, Russia, India and China (BRIC) economies during the last few years. However, despite the impressive growth, India continues to have one of the lowest per capita consumption of alcohol rankings in the world. This reflects the largely untapped potential of the Indian market. India is the second-most populous country in the world, with a population of more than 1.1 billion. Datamonitorâ&#x20AC;&#x2122;s Country Statistics Database estimates the population to grow to 1.2 billion by 2014. India is poised to enter the â&#x20AC;&#x2DC;demographic windowâ&#x20AC;&#x2122; with almost half the population at less than 25 years of age. The majority of this age group is yet to reach the legal drinking age. Furthermore, the population in this age group is expected to grow by 6 million during 2010-14. Meanwhile, lack of strict law enforcement results in a scenario where even those below the legal drinking age consume alcoholic beverages. For instance, WTO reported

TREND ANALYSIS

that the average age of initiation into drinking alcohol in the Indian state of Kerala had consistently reduced from 19 years in 1986 to 13.5 years in 2006. According to Datamonitor’s Market Data Analytics, the major consumer segment of alcoholic beverages in India belongs to the age bracket of 25-34 years. Datamonitor’s Country Statistics Database predicts that this population base will grow by 22 million during 2010-14. This represents a huge opportunity for the alcoholic beverages sector. India’s growing young population has led to the emergence of a substantial active workforce with increasing disposable income. This has provided alcohol manufacturers with a lucrative and expanding target segment. Roland Abella, Managing Director, Diageo India, recently said that the Indian market offers two million new clients annually, which was unparallelled in the world. Another factor fuelling the surge in alcoholic beverages sector is the growth of the Indian economy. The economy grew by 7.4 per cent during the fiscal year 2009-10, registering the secondhighest growth among G20 countries. As per estimates of the Reserve Bank of India, it will expand by 8.5 per cent during the fiscal year 2010-11 and 9 per cent during 2011-12. According to Datamonitor’s Country Statistics Database, the Indian economy recorded an average GDP growth of 8.4 per cent during the period 2005-10 and is expected to retain this growth momentum in future too. Over the period 2003-09, India experienced one of the highest growth rates in the BRIC economies, second only to China. Interestingly, the gap between the growth rate of India and China is steadily narrowing as a result of India’s increasing prowess in the services & manufacturing sectors and international concerns about the artificially low value of the Chinese currency, among other factors. A strong economic growth has led to increased average income, while the ‘trickle down’ effect of growth has helped improve living standards. Since

economic liberalisation began in the early 1990s, wealth has also become more widely distributed. The per capita income of Indians grew by 10.5 per cent to ` 44,345 in 2009-10 compared to ` 40,141 in 2008-09. The relatively young population is a prime beneficiary of jobs created in new age industries such as business process outsourcing and information technology, which in turn is leading to higher economic growth and more employment opportunities. All these have resulted in the rising consumption of alcoholic beverages.

Consumption trends Spirit constitutes the dominant market within the Indian alcoholic beverages sector, accounting for the bulk of total sales. Beer accounts for a significant share of the market, while the wine market is in a nascent stage as it is considered a sophisticated drink for the elite. All the markets in the alcoholic beverages sector are highly consolidated, with the top players in a dominant position.

Going forward, the sector is likely to witness brisk growth, particularly in low alcohol products. Increasing acceptance of alcohol consumption among the nouveau riche (new rich) and the aspiring middle class indicates the high growth potential for the sector in India. There is a growing appetite for premium alcoholic beverages in India, as young consumers get increasingly prosperous and experimental. Manufacturers have resorted to innovative packaging and marketing to capture the attention of this consumer segment. Clever marketing by liquor brands to position alcohol as a lifestyle product and global exposure have facilitated the acceptance of alcoholic

beverages, particularly among the young population. This trend has also received a boost from the new age jobs such as business process outsourcing. A recent study by Tata Memorial Hospital reported that more than onethird of business process outsourcing employees consume alcohol. Interestingly, this study recorded alcohol usage among 17.3 per cent among females. Traditionally, alcoholic consumption has been regarded as a male domain; however, in recent times women have begun to experiment with alcoholic beverages. This trend is evident among young, affluent and educated urban women who drink primarily in social settings and prefer beverages that have low alcohol concentration. This group is set to grow with rising disposable incomes and the increasing participation of women in the job market. In fact, according to Datamonitor’s Market Data Analytics, women account for only about 3 per cent of alcohol consumers in India, while the comparable figure for China is more than 30 per cent. This represents a huge opportunity for alcoholic beverage manufacturers. Indeed, in recent years manufacturers have targeted affluent women with products like wine, beer and vodka. For instance, wine held the lion’s share

May 2011 | Modern Food Processing

TREND ANALYSIS

in new product launches in the Indian alcoholic beverage sector in 2010. Going forward, this trend is likely to continue as more number of women gain financial and social independence. Recently, Vijay Mallya, Chairman, UB Group, was quoted as saying that wine has a bright future because women have started drinking it, which was not the case in the past. Meanwhile, United Spirits Ltd achieved a sales volume of 100 million cases for the fiscal year 2009-10, to become the worldâ&#x20AC;&#x2122;s second-largest spirits company by volume. According to Datamonitorâ&#x20AC;&#x2122;s Market Data Analytics, India has one of the lowest per capita consumption of alcohol rankings in the world. Alternatively, a large proportion of consumers in India are moderate drinkers. Datamonitor analysis shows that consumers in India place a high importance on avoiding binge drinking. This augurs well for low alcohol beverages such as beer and alcopops. Another implication of this is that high alcohol beverages will have to expand volumes primarily by adding new users rather than increasing the consumption of existing users. As per the study by Datamonitor, on-trade accounts for two-fifths of alcohol consumption in India. This is significantly higher than China or the US and also higher than the global average of on-trade, accounting for onethird of the consumption. This can be attributed to the association of alcohol consumption with social occasions as well as social disapproval of alcohol consumption at home. Traditionally, many young people refrain from drinking alcohol in front of their parents and relatives, and therefore prefer to consume alcohol on-trade.

In high spirits An emerging trend in the Indian alcoholic beverages sector is that local manufacturers are looking to expand sales beyond the geographical borders of India. They are not focussing merely on selling under European labels, or for limited circulation, but on expanding the overseas market for India-labelled alcoholic beverages. Going forward, the sector is likely to witness brisk growth, particularly in low alcohol products, as manufacturers launch new products and consolidate existing products. Spirits will continue to be the dominating market within this sector in the foreseeable future, even as beer, flavoured alcoholic beverages (FABs) and wine spread their tentacles wider. Indeed, the Indian consumer will have the luxury of picking and choosing, as a plethora of bottles & cans roll out from the stables of local and global heavyweights.

Amit Srivastava is an Analyst - Consumer Markets with Datamonitor. For details, contact Aartee Sundheep on email: asundheep@datamonitor.com

Modern Food Processing | May 2011

SAFETY MANTRA

Food SMEs

Hazard control through safety compliance Most food products are prone to safety-related hazards at every stage in the production process. Hence, initiation of appropriate quality control procedures is pivotal for every organisation throughout the food chain for delivering safe products to endconsumers. Such initiatives are all the more pertinent for emerging SMEs in the food segment, reveals a study by Intertek.

Rajesh Saigal

n industrialised nations, about 10 per cent of the population is affected by one or the other food-borne disease annually. Moreover, a large quantity of food products are getting recalled/rejected in the EU countries due to presence of banned veterinary drugs/antibiotics, pesticides, etc. In order to prevent or reduce the risk of food-borne illnesses, it is necessary to introduce pertinent control measures at all stages of the global food chain, including the farm or primary production stage. As hazards can occur at any stage of the food production process, adequate control throughout the food chain is essential. Communication is necessary to ensure that all food safety hazards are identified and adequately controlled. This implies communication between organisations both upstream and downstream in the food chain. Communication with customers and suppliers about identified hazards & control measures will assist in clarifying customer & supplier requirements. Recognition of the organisationâ&#x20AC;&#x2122;s role and position within the food chain is pivotal to ensure effective interactive communication

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throughout the chain for delivering safe food products to the final consumer.

Analytical study on food SMEs In a study conducted by Intertek to draw insights on the emerging small and medium enterprises (SMEs) segment in India, it was found that the food processing sector is the third-largest, after auto components and textiles. As a part of the study of the food processing sector, an initial database of over 5,000 companies was prepared. The companies were further shortlisted based on certain criteria, such as manufacturing companies having less than ` 1,000 million turnover; companies that are not a subsidiary of any MNC or large business group, non-BIFR (Board for Industrial & Financial Reconstruction) cases, etc. The study aimed to draw a profile of how small and medium companies in the food processing space function. It attempted to chart their operational structure, business practices, preferences, marketing and efficiency parameters, among others. For this quantitative exercise, a sample of 245 companies was selected and some of the key characteristics of these organisations included: R Ownership pattern of companies included

SAFETY MANTRA

proprietary firms 13.5 per cent; partnership firms 16.5 per cent; private limited companies 43 per cent; and public limited companies 27 per cent The sample comprised over 98 per cent of the food processing clusters, except a few in Himachal Pradesh and Jammu & Kashmir The geographical spread of the sample companies mirrors the concentration of food processing companies in the country. The West and South have maximum representation. Around 33.5 per cent companies are located in the West; 31 per cent in the South; 27.5 per cent in the North; and 8 per cent in the East Reflecting the low capital-intensive nature of the industry, around 77 per cent of the companies in the sample are small-scale enterprises on the basis of investments in plant and machinery. The rest are mediumsized enterprises The representation from the various sub-segments of the industry was as follows: 34 per cent into grain processing & spices segment; 14 per cent into packaged/convenience food; 8 per cent into non-alcoholic beverages, which include soft drinks, tea, coffee, fruit juices, water, etc; 7 per cent each into milk & milk products, and fruits & vegetable processing; 6 per cent into bakery; 5 per cent into sugar & confectionery; 4 per cent into meat & poultry; 3 per cent each into alcoholic beverages & marine products; and 9 per cent into the ‘others’ segment. The ‘others’ category included manufacturers of food colours, flavours, additives, seeds, guar gum, etc Around 65 per cent of the companies are solely into manufacturing, while 35 per cent are engaged in manufacturing as well as trading Around 78.5 per cent of the companies in the sample began operations between 1980 and 2000; only 4 per cent were present prior

to 1980s. The rest are relatively new having begun operations post-2000 R About 71 per cent of companies have a single manufacturing facility while 27 per cent operate with two or more plants R In terms of web presence, 42 per cent of the companies have a website

Safety specifications Food safety specifies requirements for a properly managed system where an organisation in the food chain needs to demonstrate its ability to control food safety hazards in order to ensure that food is safe at the time of human consumption. It is applicable to all organisations (regardless of size) involved in any aspect of the food chain that plan to implement systems for ensuring safe products. The means of meeting any requirements of food safety can be accomplished through the use of internal and/or external resources. Food safety specifies requirements for enabling an organisation to: R Plan, implement, operate, maintain and update a food safety management system aimed at providing products that, according to their intended use, are safe for the consumer R Demonstrate compliance with applicable statutory and regulatory food safety requirements R Evaluate & assess customer requirements and demonstrate conformity to those mutually agreed customer requirements that relate to food safety, in order to enhance customer satisfaction R Effectively communicate food safety issues to their suppliers, customers and relevant interested parties in the food chain R Ensure that the organisation conforms to food safety policy R Demonstrate such conformity to relevant interested parties R Seek certification or registration of its food safety management system by an external organisation,

or make a self-assessment or selfdeclaration of conformity to Food Safety Management Systems (FSMS) requirements

Towards a safe approach Improvement of the safety management system does not incur cost. On the contrary, increased awareness about the regulatory, statutory & customer needs and implementation throughout the food chain can minimise the associated risks by increased due diligence. It can enable systematic management of pre-requisite programmes, better planning & less post-process verification, efficient & dynamic food safety hazard control, as well as reduce liability & risk. Moreover, the focus on end-result brings a lot of benefits such as systematic approach, compliance with customers, statutory & regulatory requirements, organised and targeted communication among the trade partners, and facilitates better business processes. Rajesh Saigal is the Managing Director of Intertek India. He has experience of over 20 years in the areas of sales, marketing, finance, manufacturing, operations, and general management functions. For details, contact Madhumita Guha on email: madhumita.guha@intertek.com

May 2011 | Modern Food Processing

TRADE ZONE

E-commerce

Differentiating products online In the computer age, where Internet enables to connect with the whole world, online business offers a plethora of opportunities to all enterprising entrepreneurs. E-commerce unveils new avenues for business and helps even small enterprises to think big & go global.

Sandeep Deshpande

mall businesses in the food and beverage industry have been witnessing a strong year-on-year growth in the number of enquiries from global buyers looking for products from India. Moreover, several global buyers from countries including the US, Egypt and Pakistan are looking for business partners with the industry to establish longterm relations. Therefore, in recent times, small businesses in the food & beverage industry have started leveraging the power of e-commerce to make the most of global opportunities. They are marketing and promoting their products online. Along with a rise in the number of Indian food & beverage suppliers getting registered on online portals, it is also expected that many more small business owners in this sector will turn to e-commerce to grow their business. However, merely turning to e-commerce and registering on an online B2B portal is not sufficient to attract the attention of global buyers. Like everything else, a first good impression of the business’ storefront can lead to sales. But, this is through the Internet and

Modern Food Processing | May 2011

not on a physical storefront with face-to-face interaction with the buyer. Here is a case in point. Suresh Chowdhary, Owner of Bahadurmal Chowdhary & Sons, a food & beverage company based in Nizamabad, has been exporting food products like turmeric, coriander, chilly, cumin seeds and other spices via e-commerce. He has been using this medium for more than three years now, and has been receiving 10-15 genuine enquiries every week. Chowdhary’s secret to online success is that he updates products every week along with related pictures, prices and relevant details. This has enabled his venture to grab the attention of global buyers and reach new levels. Here is how other small businesses can make the most of the Internet and effectively differentiate themselves online. To ensure that product searches display one’s products in the top few searches is not a difficult task, but it takes some time and effort to master. To start with, it is important to manage the online business in a dedicated manner – one can either do it by himself/herself or appoint someone from the company who has a thorough understanding about the business and products.

TRADE ZONE

Updating company profile Whether one has a website for an organisation or has the membership of an online B2B portal, the first step should be to update the complete, relevant information about a company. This works as an online company profile, giving detailed information about the business operations to prospective buyers. The company profile can include information such as product offerings, experience with domestic & international trade, company certifications, manufacturing units & capacity, number of employees, awards & recognition, major markets, and lastly, company contact details. All these details help highlight the strengths of a company vis-Ă -vis its competitors. Updating the company profile should be an ongoing activity.

Defining product offerings Once a comprehensive background about a company has been defined, the focus should move to drawing potential buyersâ&#x20AC;&#x2122; attention to its products. It is crucial to understand which products and/or product categories are popular & fast moving. These can then take precedence on the online storefront. One may choose to list all the products or highlight prominent product categories. Essential information that should be provided includes product features, pricing, expiry dates, usage guidelines and availability. To help buyers gain a better understanding of the offerings, one can provide complete details on weight of the product, raw materials & ingredients used, colour, method of processing, flavour & additives used, etc. Another critical point is recognising whether or not to use technical jargons in product descriptions. The key is to ensure that while pertinent information is within the reach of prospective buyers, they are not weighed down with data. For example, if a company manufactures pickles, ensure that details like the type of mangoes used (mention specifically if organically grown), preservatives used if any, colour of pickle, other spices used, the type of packaging (glass/plastic bottles), among others, should be mentioned.

Product pictures Along with product descriptions, product pictures are a major attraction for online buyers, as they will serve as a significant parameter to judge a product. The product pictures must be clear and simple, preferably below 3 MB in either .jpg, .png or .gif formats. This is to ensure that images load easily and quickly, without consuming too much of bandwidth. It is prudent to use pictures of oneâ&#x20AC;&#x2122;s own products rather than just a representative image. Any company and/or product branding should be visible on all product pictures. A contrast background

May 2011 | Modern Food Processing

TRADE ZONE

is preferred when the pictures are taken, as this better defines the product shape and colours. One may also watermark images with the company logo to ascertain that the product pictures are not misused. Also, it may help attract more attention by highlighting the product itself, rather than its packaging. For instance, an exporter of spices or food grains can showcase the particular spice or food grain, with special emphasis on the colour and texture of the product, rather than simply posting pictures of bottles or boxes, in which it is packed.

Organising products To make it easier for buyers to browse through product picture galleries, one can further distinguish and organise product pictures into categories & sub-categories. For example, a manufacturer of various food products can create broad categories like food grains, spices, frozen food, beverages, etc, and post products in each of these categories. This creates a clutter-free browsing experience for the buyer, and makes it simple for the producer to upload products as well.

Choosing the right keywords Keywords, simply, are identifiers to illustrate a product in a few words or terms. Around 80 per cent of buyers search for products using keywords on the Internet, which the search engine recognises and matches with web pages, tossing up the search results. On many B2B portals, product searches are similar, based on keywords. One should always think like a buyer while shortlisting and using keywords for various products. For instance, biscuits are mostly referred to as cookies in the US. So if ‘biscuit’ is one of the products, it is recommended to use the keyword ‘cookie’ as well. Another important aspect is to ensure that the keywords are spelled correctly.

Cleverly deploying and mixing elements to best suit one’s business needs will help build and sustain a valuable network of business partners. If there is an option of applying multiple keywords for a particular product, one must exhaust all the options and describe the product in as many different ways as possible. For example, if a fruit jam producer wants to add keywords to his/her product, he/she can consider keywords like ‘fruit jam’, ‘fruit preserve’, ‘marmalade’, ‘fruit jelly’, etc. It is essential to keep in mind what the buyers would type while looking specifically for this product. Also, a useful tip is to consider what people in different countries would call the product. Like, fruit jam in Spanish is called ‘mermelada de frutas’.

Effective management of e-commerce When right things are done the right way, managing e-commerce business becomes not only simpler, but also more effective than managing a physical business. Cleverly deploying and mixing

Modern Food Processing | May 2011

elements to best suit one’s business needs will help build and sustain a valuable network of business partners. Here is a success story. Royal Agro Food Industries, a company based in Mumbai, manufactures and exports food products like agro and dairy products to several countries. Kashinath Jadhav, CEO, Royal Agro, receives more than 50 to 60 enquiries per day for his products like maize, ethanol alcohol, rice grains, milk powder and spices. Jadhav believes that in spite of the products being priced higher than market rates, he still has been able to conduct online business of more than ` 100 crore in the last four years. He ensures that potential buyers receive as much information about products as possible and promptly replies to enquiries, thereby enabling to successfully build a network of partners online. Creating an ecosystem online to support a company’s presence will help differentiate its products online. In addition, the company and products will get exposure in global markets, and it is only a matter of time before enquiries start pouring in. Sandeep Deshpande is the Country General Manager of Alibaba.com, India. Alibaba.com, one of the leading global players in e-commerce for small businesses, currently has more than 1.8 million registered users in India. For more information, contact on email: igs@member.alibaba.com

EVENTS CALENDAR

National RUDRAPUR: Uttarakhand, Sept 23-26, 2011, Gandhi Park AHMEDABAD: Gujarat, Nov 14-17, 2011, Gujarat University Exhibition Hall PUNE: Maharashtra, Nov 18-21, 2011, Auto Cluster Exhibition Centre CHENNAI : Tamil Nadu, Dec 16-19, 2011, Chennai Trade Centre INDORE: Madhya Pradesh, Jan 6-9, 2012, Poddar Plaza, Nr Gandhi Hall AURANGABAD: Maharashtra, Feb 17-20, 2012, Garware Stadium 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

FF&B 2011 The second annual Functional Food & Beverages (FF&B) India show for health and wellness products; June 28-30, 2011; at ITC Maratha, Mumbai For details contact: Oby George Programme Manager - Fi Conferences 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: conferences-india@ubm.com

PackPlus South 2011 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 International Infotech Park Vashi, Navi Mumbai 400 705 Tel: 022-2781 2093, Fax: 022-2781 2578 Email: info@indiapackagingshow.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

concurrently with DairyTech India, GrainTech and AgriTech India; September 09-11, 2011; at Gayathri Vihar, Palace Ground, Bengaluru For details contact: Media Today Group (Exhibition Div) T-30, 1st Floor, Khirki Extension Malviya Nagar, New Delhi 110 017 Tel: 011-6565 6553/2668 2045 Fax: 011-2668 1671 Email: dti@dairytechindia.in

Fi India 2011 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

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

SUGARASIA 2011 India Foodex 2011 An exhibition on food processing & packaging technology, and food & beverage products to be held

An event dedicated to sugar processing, co-generation, ethanol and cane harvesting; November 21-25, 2011; in New Delhi

Modern Food Processing | May 2011

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

India Converting Show 2011 Exhibition aimed at package converters, will showcase latest trends in packaging technologies; November 23-26, 2011; at Bombay Exhibition Centre, Mumbai For details contact: Print-Packaging.com Pvt Ltd International Infotech Park Vashi, Navi Mumbai 400 705 Tel: 022-2781 2093, Fax: 022-2781 2578 Email: info@indiapackagingshow.com

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

Sweet & SnackTec India 2011 A specialised event for sweet, snack and confectionery processing industry will be held concurrently with Dairy Universe India (an expo for the dairy industry); December 06-08, 2011; at Bombay Exhibition Centre, Mumbai For details contact: Koelnmesse YA Tradefair Pvt Ltd 501/502, Kemp Plaza, Mind Space Chincholi Bunder Ext, Off. Link Road Malad (W), Mumbai 400 064 Tel: 022-4210 7801-11, Fax: 022-4003 4433 Email: info@koelnmesse-india.com

India Packaging Show 2011 The show aims to bring together the worldwide manufacturers and providers of machinery, materials and services for food, pharma and packaging industry from India and neighbouring countries; December 07-10, 2011; at NSIC Exhibition Centre, Okhla Industrial Estate, Delhi For details contact: Print-Packaging.com Pvt Ltd International Infotech Park Vashi, Navi Mumbai 400 705 Tel: 022-2781 2093, Fax: 022-2781 2578 Email: info@indiapackagingshow.com

EVENTS CALENDAR

International Interpack 2011

FOODPRO 2011

ANUGA 2011

An exhibition for processing and packaging technology offering innovative solutions to meet the challenges of the markets; May 12-18, 2011; at Duesseldorf, Germany

A trade fair showcasing latest trend and technology in food manufacturing; July 10-13, 2011; at Sydney Convention & Exhibition Centre, Australia

One of the leading exhibitions for processed foods and technology; October 08-12, 2011; at Exhibition Centre Cologne, Germany

For details contact: Rajesh Nath VDMA Liaison Office GC 34, Sector III, Salt Lake Kolkata 700 106 Tel: 033-2321 9522/7391 Fax: 033-2321 7073 Email: vdma@giascl01.vsnl.net.in

For details contact: Dmg World Media (UK) Ltd Westgate House 120/130 Station Road Redhill, Surrey RH1 1ET The UK Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855475 Email: webmaster@ca.dmgworldmedia.com

For details contact: Koelnmesse GmbH Messeplatz 1 50679 Köln Germany Tel: +49 221 821-0, Fax: +49 221 821-2574 Email: info@koelnmesse.de

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

HI South America Summit 2011 Conference and exhibition on Health Ingredients (HI); August 09-10, 2011; at Expo Center Norte, São Paulo, Brazil 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

Food & Hotel Thailand 2011 Exhibition for food & drink, hotel, restaurant, bakery and foodservice; August 31 - September 03, 2011; at Royal Paragon Hall Exhibition & Convention Centre, 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

DISF 2011 The Dubai International Seafood Expo (DISF) 2011; September 27-29, 2011; at Jumeirah International, Dubai For details contact: Orange Fairs & Events P O Box 111164, Dubai, UAE Tel: +971 4 2988144 Fax: +971 4 2987886 Email: orangex@emirates.net.ae

China Foodtech 2011 Exhibition for the food processing and packaging machinery; November 02-04, 2011; at China International Exhibition Centre (CIEC), Beijing For details contact: CIEC 6 East Beisanhuan Road Chaoyang District Beijing, 100028, China Tel: +86 10 8460 0335 Fax: +86 10 8460 0325 Email: wangbaoliang@ciec.com.cn

SIFSE 2011 The Shanghai International Fisheries & Seafood Expo (SIFSE) for fish processing industry; December 08-10, 2011; at Shanghai Everbright Convention & Exhibition Center, China For details contact: Shanghai Gehua Exhibition Service Rm.1206-1208 Xin’an Building No. 99 Tianzhou Rd Shanghai, 200233, China Tel: +86-21-54451166 Fax: +86-21-54451968 Email: info@gehuaexpo.com

ISM International sweets and biscuits fair; January 29 - February 01, 2012; at Exhibition Centre Cologne, Germany For details contact: Koelnmesse GmbH Messeplatz 1, 50679 Köln Germany Tel: +49 221 821-0 Fax: +49 221 821-2574 Email: info@koelnmesse.de

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 | May 2011

REPORT

Food Forum India 2011

A confluence of sustainable ideas

Session on safety & sustainability for Indian farmers

Mahua Roy

ood Forum India 2011, held at The Renaissance Hotel in Mumbai, was one of the largest congregations of key global and Indian food retailers, manufacturers, organisations and decisionmakers in the food business. This one-of-a-kind industry event brought together the best in the business of food to discuss collaboration opportunities and growth strategies for the future. Besides global and large Indian food brands & retailers, there was an overwhelming response from independent grocers & retailers and regional chains – both food & restaurants – from across India, who got together to explore expansion or upgradation of their respective business models.

MoFPI initiatives Speaking at the Food Forum India, Ashok Sinha, Secretary, Ministry of Food Processing Industries (MoFPI), announced that the Central Government has approved funds for establishment of mega food parks. “We are setting up 15 mega food parks initially out of the 30 mega food parks planned during the 11th Plan period. These parks will provide state-of-the-art infrastructure for the food processing sector. The Central Government has already approved ` 50-crore worth grant for each park,” he said. Sinha also assured complete government support to the sector.

Modern Food Processing | May 2011

Held in Mumbai from March 28-29, 2011, Food Forum India brought together the entire food industry in the country, from food processing, to retail as well as restaurant businesses. Holistically representing the food industry through trade show, conference series, awards, this event facilitated networking and exchange of knowledge.

Atul Singh, Chairman, Food Forum India, and President & CEO, Coca-Cola India and South West Asia, in his welcome address, highlighted the tremendous growth opportunities in the food industry because of expansion of the middle class people and the youth. “India is a large economy and with the change in consumer preferences, there will be a huge demand for packaged food and beverages. Thus, innovation in the food sector needs to continue,” he said. The food industry is dependent on agriculture. The integration of agriculture and the food industry as a whole is crucial in order to encourage government support. He also spoke about the importance of CSR activities for a sustainable business. Ireena Vittal, Principal, Mckinsey & Co, emphasised on some of the key emerging trends in the food sector and said that the Indian food sector is set for a huge growth. She said that the manufacturers need to think more local and community-based as this will drive the sales. Vittal also touched upon the need to tap the potential in the emerging rural market in India and highlighted key areas for investments viz localising product portfolio and platform; sharing catagories; creating new and low cost business models. The evening hosted an award ceremony ‘Coca-Cola Golden Spoon Awards’ to honour the achievers in the restaurant and retail businesses.

REPORT

Dignitaries launching Minute Maid in tetrapak

Modernisation of food business A discussion on the need for modernisation of food business in every aspect including production & processing, supply chain, retail & distribution, quality awareness among consumers, wider variety & market expansion, saw active participation from the industry. US India Business Council (USIBC) also launched its 3rd Annual Food Agriculture Executive Mission to India by participating in Food Forum India. During a special segment, USIBC speakers focussed on areas where synergies are abundant: advanced technology collaboration, the means to facilitate investment in the farm-tomarket supply chain and collaborative ways to identify interventions that will ensure efficient and sustainable growth of India’s food-to-fork agricultural value chain, an outcome that tends to benefit all segments of society.

Restaurant business The National Restaurant Association of India (NRAI) Conclave at The Food Forum India 2011 saw panelists brainstorming on changing consumer trends & behaviour, and how the restaurant sector needs to adopt innovative marketing concepts in order to grow. The session on ‘Effective and innovative marketing’ discussed the ways implemented by the food brands and restaurants to connect to the customers. Digital media like social networking, blogging, PR, media, e-commerce, etc, has emerged as effective and economic marketing initiatives. But the Indian food industry

Sangeeta Pendurkar, MD, Kellogg India, awarding Karan Kapoor, MD, Blue Foods

Atul Singh awarding Sameer Kukreja, MD, Nirula’s

is yet to tap it efficiently, the panel observed. Ashok Bajpai, GM, Pizza Hut Delivery, spoke about the emotive connect that a brand can create through social media. “Digital media helps in creating trust and credibility, hence creating an emotive connect with the customer. It keeps brands on toes,” he added. The session on ‘Changing consumer behaviour and impact on the restaurant industry’ deliberated on rapidly changing consumer behaviour.

Food safety and security The second day of Food Forum India continued to witness some engaging and interesting debates concerning the food industry. The session on ‘Global GAP and food safety’ saw the panelists from various organisations voicing their concerns about food safety, and how the same can be improved with proper standardisation & traceability process. The major challenge that lie ahead is food security and safety. Proper quality control mechanism needs to be in place at all the levels of the supply chain ensuring that the quality of food is not harmed. Nigel Garbutt, Chairman, GLOBALGAP, UK, said that, “The consumers’ concerns related to quality have led to stringent regulations for food safety. Today, all the raw materials required for the preparation of food is outsourced, resulting in the loss of the ultimate food quality. More the partners in the supply chain, more complex is the business process and the information system. It is thus important to efficiently track and trace the supply chain.”

The concerns were further echoed in the session on ‘Upgrading and improving the food supply chain in India’. The supply chain in India is fragmented with the back-end, including farmers and storage providers, not exposed to the required know-how and technology. A valuedriven mechanism needs to be created that can integrate the entire supply chain and train the suppliers in food processing and handling. The session also highlighted the importance of public-private partnership as a key to food safety. The companies should readily invest in technology and training institutes. The government, industry as well as the agriculture sector should be linked together to invest in R&D and academics.

Supply chain management The panel discussions put forward that efficient supply chain and value addition for the end-customer are vital to curb inflation. Amit Jatia, MD, McDonald’s India, citing McDonald’s case study, said, “McDonald’s was successful in creating an effective supply chain and vendor resources, hence cutting down on extra cost. This allows scaling up the volume, thereby creating economies of scale.” The panel felt that the larger players are well equipped to handle inflation whereas small players struggle. The sector should come together to support each other. India also lacks quality suppliers. The panel opined that the other cost factors such as rentals, real estate prices, should also be worked upon to control prices.

May 2011 | Modern Food Processing

PRODUCT UPDATE

Electric injection moulding machine

Lab model screw extruder

Neejtech India offers electrical horizontal injection moulding machines from Niigata in Japan. The machine ranges from 30 to 1,000 tonne & vertical IMM ranges from 30 to 150 tonne. All electric machines are generally known as green machine because it saves more than 60 per cent power consumption than similar size hydraulic/toggle machine. This machine is absolutely free from oil and does not create pollution. Due to no oil use, it reduces maintenance & repair cost of hydraulic system. It ensures enhanced accuracy & reliability, and also provides great cost savings, besides contributing to environmental preservation. The machines are ideally suitable for medical, automotive, pharmaceutical, healthcare and packaging moulding segment of industry. This machine runs noiselessly & without vibrations. It is precise due to no deviation through oil viscosity, compressibility, through drifting hydraulic valve action time. By switching over from hydraulic to electric injection moulding machines, one can save greater cost on power consumption, cooling water consumption, hydraulic oil elimination, and even housekeeping & maintenance cost. The electric injection moulding machine increases up-time and decreases material wastage.

Malik Engineers offers MEGA series single and twin screw extruder. This is suitable for laboratory trials and small-scale production of polymeric and food cereals. This extruder is driven through helical gear box & AC induction motor with frequency control panel for stepless control of screw speed. Barrel is of modular construction, made up of segments and is electrically heated and also provided with water jackets for removing extra heat. Hopper is provided with Auger feeder for controlled feeding over the screw. Devolatising port is provided, which can be used to remove moisture and volatiles from the material, when necessary. Both screw and barrel are made up of separate segments that can be assembled as per process demand. Different segments of barrel & screw are supplied for thermoplastics and food cereals extrusion. The machine can be used to test properties of thermoplastic product, testing of polymer blend and alloys, etc. It can be used for processing all polymers including PE, PP, PS, PVC, nylon, PBT, PC, etc. Food cereals can be processed for product recipe trials and small production. The machine is provided with accurate digital controllers and indicators for keeping record of all important parameters of extrusion, ie, druve troque, current, extrusion pressure, temperature, rotational speeds, etc.

Neejtech India Ahmedabad - Gujarat Tel: 079-2656 1312, Mob: 098250 40231 Email: sales@neejtech.com

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

Nichrome sealing wire

Roll wrap machine

Applied Plastics Co offers a new line of nichrome resistance wire that is coated with DuPont Teflon to create a non-stick surface for use at high temperatures. This nichrome wire provides a non-stick surface in a variety of plastics and packaging processing applications and is capable of 260oC continuous and 316oC intermittent use. This is supplied on spools from stock in standard 0.457, 0.508 and 0.914 mm sizes. This is suitable for use in a wide range of packaging, sealing, shrink wrapping, plastic sheet & styrofoam cutting, and acrylics bending equipment. This will outlast plain nichrome resistance wire and prevent melted plastic from building.

A M P Rose offers roll wrap machine for wrapping circular products in stick packs of varying lengths and number of candies. It comes with electronic vibratory system for the feeder. The wrap machine is provided with mechanical vibratory feed system, which enables the feeder to be turned to suit individual products. The key feature of this machine is the short-pack and no-pack, no-paper system, which utilises infrared detectors. The paper feed can be simplified by utilising a servo drive and registration system. It can be fitted with various types of coders and printers. Its features include: improved hot melt and cold glue systems, improved wrapping head design to eliminate wear on wrapper jaw teeth, belt spindles, etc.

Applied Plastics Co Inc Massachusetts - USA Tel: +1-781-762 1881, Fax: +1-781-769 3349 Email: davering@appliedplastics.com

A M P Rose (P) Ltd Bengaluru - Karnataka Tel: 080-2847 3611-14, Fax: 080-2847 3615 Email: sales@amprose.co.in

Modern Food Processing | May 2011

PRODUCT UPDATE

Data logger Testo India offers new range of data loggers. The company offers three new series of data loggers. The 174 series in two variants to measure temperature, and humidity & temperature. With the larger display and huge memory capacity, these loggers give a great thrust to the price performance ratio. The 175 series takes a huge leap forward than the last series sharing the same number in terms of display size and memory capacity. In addition, it gives a facility of reading data from the logger via a mini USB port. The 176 series replaces the old 177 & 171 series of loggers. With the metal housing and finish, it stands out from all other series available in the market in its class. These new age loggers have humidity, temperature and absolute pressure in one. These have new high accuracy point of 100 probe for special applications and offers easy to read large dual line display. It has new age read-out possibilities USB & SD card and has new software that is more graphical and user-friendly. Testo India Pvt Ltd Pune - Maharashtra Tel: 020-2563 5075/85/95, Fax: 020-2563 6080 Email: info@testoindia.com

May 2011 | Modern Food Processing

PRODUCT UPDATE

Pneumatic online coder Process Instrumentation & Controls offers pneumatic online coder. It is used to print various statutory information like batch number, date of manufacturing, expiry date, prices and any other information on various pickings like tins, containers, cartons, lids, stickers, laminated flexible pouches and films, metal containers, etc. This is a small compact intermittent motion reciprocating contact coder with ink cartridge enclosed in sealed container to give a constant amount of PIC fast drying coding ink. It is specially used for high speed coding application, viz self-sticker labelling & multi-track packing lines, FFS, blister pack and strip pack machine. Its compact design makes easy to install where space is limited and can be mounted in any angle - vertical, horizontal or side mounting. Due to separate sealed ink cartridge, it avoids film contamination & keeps printing area clean. It has a versatile controller that consists of in-built cyclic timer and five different input modules to achieve or optimise printing at speeds up to 180-200 impressions per minute with easy operation. Moreover, the coder also runs through external inputs. Process Instrumentation & Controls Vadodara - Gujarat Tel: 0265-235 7228 ,Fax: 0265-235 5429. Mob: 098251 39846 Email: batchprinting@yahoo.com

Beltweigher Hassia Packaging offers Flexi weigh beltweigher. It is used for weighing rice, sugar, tea, pulses, seeds and detergents. The product to be dosed is conveyed from the product hopper to the weighing bucket using a belt. The belt speeds are programmed to optimise both speed and accuracy. The weigher can be programmed to ensure that the minimum weight required is never breached. Also as an option, weighment data can be downloaded to a computer and analysed. It can be configured to achieve the exact speeds. This is achieved by selecting suitable number of weigh heads. This beltweigher can achieve an accuracy standard deviation of Âą3 g on a pack weight of 1 kg. For higher accuracy, special electronics can be used. It is available as a standalone unit or can be integrated with VFFS, HFFS, jar filler, can filler, carton filler and pick fill and seal systems. It is offered in three models. The small weigher can weigh up to 1 kg; medium weigher up to 5 kg; and large weigher up to 25 kg. Hassia Packaging Pvt Ltd Pune - Maharashtra Tel: 02137-302 802-06, Fax: 02137-302 819 Email: info@oystar.hassiapackaging.com

Modern Food Processing | May 2011

PRODUCT UPDATE

Laser displacement sensor Banner Engineering offers triangulation laser displacement sensors for noncontact height or thickness measurement of a wide variety of materials such as sheet metal, wood, ceramic, paper, plastic, rubber, foam and baking dough, etc. These sensors provide precise measurement of distance, web thickness and alignment. Applications include hot parts, machined parts, semiconductors and PCBs, shiny or reflective parts, and soft or sticky parts. There are three models in the series, with measurement ranges of 25-35, 60-100 and 100-200 mm. Thickness is measured by two sensors mounted at either side of the target that automatically synchronise with one another. Up to 32 sensors can be easily combined in a mixed measurement network of multi-track displacement or thickness sensors. The dedicated software application included with each sensor allows easy setup, configuration and accommodates data logging and monitoring for statistical process control. Output communication is via simultaneous 4-20 mA (16 bit D/A) and RS-485 serial connection. Banner Engineering India Pvt Ltd Pune - Maharashtra Tel: 020-6640 5624, Fax: 020-6640 5623, Mob: 093223 39208 Email: salesindia@bannerengineering.com

May 2011 | Modern Food Processing

PRODUCT UPDATE

Chocolate chip depositor A M P Rose offers chocolate chip depositor, which is designed to make chips of 0.05 to 0.2 gm at 20 strokes/ minute. The body of the depositor has twin jacketed hoppers manufactured entirely in stainless steel. The depositor is available with a twin rotary valve with horizontal piston design. Chocolate piston deposit and suction strokes speed are adjustable via PLC control. Piston suck back can be adjusted for speed and stroke or can be eliminated altogether. The 96 pistons are mounted on two drive bars (48 on each) and retained by two ‘keep’ plates. Pistons can be disconnected and removed for cleaning by lifting the ‘keep’ plates and extracting them through the drive bar. Each drive bar is supported on bearings by two shafts to ensure a horizontal movement throughout the piston stroke. The depositor head will oscillate from left to right during the chocolate deposit stroke and then return to its parked position. The head is mounted on linear bearings and driven servo motor and planetary gearbox. Transfer plates are held in place by two bars and secured with cap head screws, which allow for quick exchange of plates but ensure complete clamping. Changing from one nozzle layout to another requires a change of transfer plates and selecting a new programme in the PLC. A M P Rose (P) Ltd Bengaluru - Karnataka Tel: 080-2847 3611-14, Fax: 080-2847 3615 Email: sales@amprose.co.in

Sampler Sentry Equipment Corp offers ‘Isolok® M4KSA’ automatic fixed volume sampler. This sampler is primarily used for milk or other free-flowing low viscosity sanitary liquids and slurries. Its features include: 1, 2 or 3 cc sample volume per cycle, rugged stainless steel construction, FDA approved materials. It conforms to 3-A Sanitary Standards. This is used for raw or processed milk, juices, whey, other food products and pharmaceuticals. The company also offers Isolok® MSC automatic fixed volume sampler for sanitary liquids & slurries. It captures up to 14 cc of medium viscosity products such as cream or single strength orange juice. This sample is provided with food grade elastomers for all process contact seals. Its features include rugged stainless steel construction, FDA approved materials and conforms to 3-A Sanitary Standards. Sentry Equipment Corp Wisconsin - USA Tel: +1-262-567 7256, Fax: +1-262-567 4523 Email: sales@sentry-equip.com

Modern Food Processing | May 2011

PRODUCT UPDATE

Air-cooled compressor Elgi Equipments Ltd offers a unique range of air-cooled compressors for industries that demand oilfree air at their application point. These non-lubricated compressors offer customers the advantages of low energy consumption and low running costs. The air-cooled design eliminates the need for water cooling systems, thereby saving industrial water costs. The two-stage air-cooled cooler has a 0.25 kW single phase motor driving a cooling fan. This eliminates the need for cooling towers, water circulation pumps and the associated piping, thus reducing the initial investment. This also reduces the installed power. The two-stage design increases the efficiency of compression because it facilitates inter cooling. It also reduces the load on the moving parts by reducing the compression ratio of any stage. These features result in the life of the compressor being enhanced. The motor of the compressor fits within a space of 1.74 square metre and the motor rests on anti-vibration pads. A typical Elgi package consists of a motor, air end, air-cooled cooler, 500 litre air receiver with associated piping and control panel. Elgi Equipments Ltd Coimbatore - Tamil Nadu Tel: 0422-2589326, Fax: 0422-2573697, Mob: 097900 39326 Email: enquiry@elgi.com

Modern Food Processing | May 2011

PRODUCT UPDATE

Rotary level controller BinMaster offers compact rotary level controller for dry solids & powders. It is designed for controlling material levels in smaller bins and hoppers that contain plastics, food, seed, chemicals and other dry powder and bulk solid materials. Its small size and rugged design allows for use of a level sensor and can be easily integrated into process manufacturing. This controller has few moving parts and is simple to install on the side or top of a bin. Its features include compact design, simple to install, does not require calibration, adjustable motor torque sensitivity, mounts through 3/4” pipe fitting, etc. It is equipped with de-energising motor, which extends motor life and the motor slip-clutch prevents damage to gear. BinMaster Nebraska - USA Tel: +1-800 278 4241, 402 434 9102 Fax: +1-402 434 9133 Email: info@binmaster.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

Business Insights •Technologies•Opportunities

Dear Reader, ‘Modern Food Processing’ solicits original, well-written, application-oriented, unpublished articles that reflect your valuable experience and expertise in the food processing industry. You can send us Technical Articles, Case Studies and Product Write-ups. The length of the article should not exceed 3000 words, while that of a product write-up should not exceed 200 words. The articles should preferably reach us in soft copy (either E-mail or a CD). The text should be in MS Word format and images in 300 DPI resolution & JPG format. The final decision regarding the selection and publication of the articles shall rest solely with ‘Modern Food Processing’. Authors whose articles are published will receive a

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complimentary copy of that particular issue and an honorarium cheque. Published by Infomedia 18 Limited, ‘Modern Food Processing’ is the leading monthly magazine exclusively meant for producers and user fraternities of the food processing industry. Well supported by a national readership of over 80,000 and our strong network of 26 branch offices across India, this magazine reaches out to key decision makers among the Indian manufacturers of food processing products, machinery and allied sectors. Brought out in association with Hong Kong-based Ringier Trade Publishing Ltd (one of the world’s largest

trade publishing houses with more than 200 special interest titles and offices in every major country), it ensures that advertisers are able to promote their products and services across the globe at no extra cost. So get going and rush your articles, write-ups, etc… Thanking you, Yours sincerely,

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Modern Food Processing | May 2011

D +91 22 3003 4669 T +91 22 3024 5000 F +91 22 3003 4499 E manas@infomedia18.in W www.infomedia18.in

PRODUCT INDEX Sl. No.

Product

Pg. No.

Sl. No.

Product

Pg. No.

Sl. No.

Product

Pg. No.

Accelerated ageing test .................... 61

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

105

Pasta making machine ........................... 11

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

Freezer/tunnel freezer............................. 33

106

Petrol & fuel oil...................................... 61

Air-cooled compressor............................ 64

Fruit ripening machine ........................... 21

107

Photo electric sensor ..............................FIC

Almond cutting machine........................ 49

Fuel........................................................ 61

108

Piston + screw compressor .................... 33

Ammonia liquid chiller ............................. 8

Gases ................................................. 61

109

Piston pump............................................. 5

Animal feed technology ......................... 11

GC/MS with head space sampler............ 15

110

Plastic pellet ........................................... 11

Automatic scrubber dryer....................... 51

Gear oils................................................. 61

111

Plate heat exchanger ................................ 8

Beltweigher ....................................... 60

Grain handling ....................................... 11

112

Plug valve................................................. 8

Biodiesel................................................. 61

Gravy machine ....................................... 49

113

Pneumatic online coder.......................... 60

Brewing.................................................. 11

Grill magnet ........................................... 59

114

Pneumatic valve ....................................... 8

Bulk milk cooler ....................................... 8

Grinding & dispersion ............................ 11

115

Polymer characterisation......................... 61

Butterfly valve........................................... 8

Gyratory screen ...................................... 59

116

Pounding machine ................................. 49

Carpet cleaning machine .................. 51

Hammer machine.............................. 49

117

Process tank ............................................. 8

Chapati machine .................................... 49

Head weigher......................................... 53

Chiller..................................................... 33

118

Product handling equipment.................. 59

Heat resistant door ................................ 61

Chocolate/cocoa machine....................... 11

119

Programmable logic controller ...............FIC

High pressure cleaner............................. 51

Chocolate chip depositor........................ 62

120

Programmable terminal ..........................FIC

Hopper magnet...................................... 59

Chorafali making machine...................... 49

121

Proximity sensor .....................................FIC

Horizontal form-fill-seal-packaging machine... 65

Cleaning section equipment ................... 11

122

PVC strip door........................................ 61

Colour masterbatch................................ 64

Colour sorting machine .......................... 11

Compositional & trace metal analysis ..... 61

23 24

Conveyor system .................................... 59 Counters & power supplies ....................FIC

Dairy machinery .................................. 8

Daliya making machine .......................... 49

Data logger..............

Diesel fuel .............................................. 61

Doors ..................................................... 61

Drawer magnet ...................................... 59

Drives .............................................. 45, BIC

Dry cum wet grinder .............................. 49

Dust control door................................... 61

Eco flux corrugated tube heat exchanger .... 5

Electric injection moulding machine ....... 58

Electromagnetic feeder........................... 59

Encoder..................................................FIC

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

Exhibition - FI India 2011 ...................... 32

Exhibition - Functional Food and

23,59

Beverages India 2011 ............................. 55

Ice machine ....................................... 33

Impact pulveriser.................................... 49

Industrial control & sensing device .........FIC

Industrial door ....................................... 61

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

Invertor/variable frequency drive.............FIC

Juicer ................................................. 49

Lab model screw extruder................ 58

Laser displacement sensor ...................... 61

Level controller.......................................FIC

Liquid food processing ........................... BC

Lubes (engine oils) ................................. 61

Magnetic equipment......................... 59

Magnetic plate ....................................... 59

Magnetic trap ........................................ 59

Masala mill............................................. 49

87 88 89 90

Material identification ............................ 61 Mathiya making machine ....................... 49 Measuring & monitoring relay ..............FIC

Rail tanker ........................................... 8

124

Rare earth tube ...................................... 59

125

Refrigerant pump ..................................... 8

126

Refrigeration ............................................ 8

127

RFID .......................................................FIC

128

Rice milling equipment........................... 11

129

Roll wrap machine ................................. 58

130

Rotary level controller............................. 66

131

Safety door........................................ 61

132

Safety light curtains ...............................FIC

133

Sampler.................................................. 62

134

Screw compressor .................................... 8

135

Seasoning system ................................... 59

136

Self adhesive tape .................................. 44

137

Single disc machine................................ 51

138

Spice mill ............................................... 49

139

Stirrer ..................................................... 49

140

Sweepers................................................ 51

141

Switching relay.......................................FIC

142

Tanks & silos ....................................... 8

143

Temperature controller ...........................FIC

144

Testing ................................................... 61

Mixture for papad machine.................... 49

145

Thermal processes .................................. 11

Motion control.......................................FIC

146

Timer .....................................................FIC TPU masterbatch .................................... 64

Metallography ........................................ 61

Mini dal mill........................................... 49

Mini pulveriser with circulating system ... 49

123

Mixer grinder ......................................... 49

Exhibition - Sweet and SnackTec India 2011 ...... 63

Extruded product ................................... 11

Extruder for papad machine................... 49

Failure analysis .................................. 61

Multi chamber pulveriser........................ 49

147

Filler compositional analysis.................... 61

Multi-axis motion controller ................... 53

148

Transmission fluid .................................. 61

Filter......................................................... 6

Nichrome sealing wire ...................... 58

149

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

Filteration/separation solution................... 6

Noodle making machine ........................ 49

150

Vaccum cleaner ................................. 51

Filtration equipment............................... BC

100

Oil milling.......................................... 11

151

Vegetable cutting machine..................... 49

Filtration system ..................................... BC

101

Online B2B marketplace .................... 19,67

152

Ventilator ............................................... 44

Packages + skids .............................. 33

153

Vermicelling machine ............................. 49

Panipuri machine ................................... 49

154

Vibration motor ..................................... 59

Papad making machine .......................... 49

155

Vision sensor..........................................FIC

50 51 52

Flexible transparent PVC strip door......... 61 Flour milling ........................................... 11 Food analysing & testing machine.......... BC

102 103 104

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

May 2011 | Modern Food Processing

ADVERTISERS’ LIST

Advertiser’s Name & Contact Details

Alok Masterbatches Ltd

Pg No

Advertiser’s Name & Contact Details

Pg No

HRS Process Systems Ltd

Advertiser’s Name & Contact Details

Pall India Pvt Ltd

T: +91-11-41612244

T: +91-20-66047894

T: +91-22-67995550

E: sales@alokindustries.com

E: info@hrsasia.co.in

E: vikram.mahapatra@pall.com

W: www.alokmasterbatches.com

W: www.hrsasia.co.in

W: www.pall.com

Bonfiglioli Transmissions (Pvt) Ltd BIC

IDMC Limited

T: +91-44-24781035

T: +91-2692-225399

E: sales@bonfiglioliin.com

E: idmc@idmc.coop

W: www.bonfiglioliindia.com

W: www.idmc.coop

Buhler (India) Pvt Ltd

India Mart Intermesh Ltd

T: +91-22-33261750 E: Jayant.dharma@perkinelmer.com W: www.perkinelmer.com

19,67

Plast World

T: +91-9376128372 E: pr@indiamart.com

E: sujit.pande@buhlergroup.com

E: plastworld1@rediffmail.com

W: www.indiamart.com

W: www.buhlergroup.com

W: www.stripdoor.co.in

Jas Enterprises

49 Shiva Analyticals (India) Limited

T: +91-79-22743454

T: +91-22-66444222

E: gupta@shivatec-india.com

W: www.jasenterprise.com

55 Jaykrishna Magnetics Pvt Ltd

T: +91-80-27971322

E: info@jasenterprise.com

W: www.diversey.com

FI Conferences

Perkinelmer India Ltd

T: +1800-200-4444

T: +91-80-22890000

Diversey India Pvt Ltd

Pg No

T: +91-22- 40461466

W: www.shivatec-india.com

T: +91-79-22970452

Siemens Ltd

E: info@jkmagnetics.com

W: www.siemens.com/industry

W: www.jkmagnetics.com

Sreelakshmi Traders

E: conferences-india@ubm.com W: www.ffb-india.com

FX Multitech Pvt Ltd

T: +91-79-27910993 E: fxmultitech@gmail.com W: www.fxmultitech.com

Koelnmesse Ya Tradefair Pvt Ltd

T: +49-234-9800

E: sreelakshmitraders@gmail.com

E: g.vamshidhar@koelnmesse-india.com

W: www.sreelakshmitraders.com

Mech-Air Industries

Testo India Pvt Ltd 21

T: +91-265-2285751

E: info@gearefrigeration.com

T: +91-20-65600203 E: info@testoindia.com

E: info@mechair.in

W: www.gearefrigeration.com

T: +91-44-24343343

T: +91-40- 65594411

W: www.sweetandsnacktecindia.com

GEA Refrigeration Technologies Gmbh 33

W: www.testo.in

W: www.mechair.in

Guan Yu Machinery Factory Co., Ltd. BC

Nichrome Ltd

T: +886-4-896-5198

T: +91-20-66011001

E: guanyeu@ms39.hinet.net

E: marketing@nichrome.com

W: www.guan-yu.net

W: www.nichrome.com

Heat And Control

UBM India Private Limited

T: +91-22-66122600

Omron Automation Pvt. Ltd.

E: fiindia@ubm.com W: www.ingredientsnetwork.com/india

FIC

V S International

T: +91-44-42103950

T: +91-80-40726400

T: +91-129-2254165

E: info@heatandcontrol.com

E: in_enquiry@ap.omron.com

E: info@vspackit.com

W: www.heatandcontrol.com

W: www.omron-ap.com

W: www.vspackit.com

Our consistent advertisers

Modern Food Processing | May 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